This Post-Effective Amendment No. 42 ("PEA") to the Form N-6 Registration
Statement No. 333-103199 ("Registration Statement") of AXA Equitable Life
Insurance Company ("AXA Equitable") and its Separate Account FP is being filed
for the purpose of including in the Registration Statement the
additions/modifications reflected in the Prospectuses, Supplement and
Statements of Additional Information. Part C has also been updated pursuant to
the requirements of Form N-6. The PEA does not amend any other part of the
Registration Statement except as specifically noted herein.
An individual flexible premium variable life insurance policy issued by AXA
Equitable Life Insurance Company with variable investment options offered under
AXA Equitable's Separate Account FP.
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING, OR TAKING ANY
OTHER ACTION UNDER A POLICY. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES
AND SUPPLEMENTS. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST, WHICH
CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
This prospectus describes the Incentive Life(R) policy, but is not itself a
policy. This prospectus is a disclosure document and describes all of the
policy's material features, benefits, rights and obligations, as well as other
information. The description of the policy's material provisions in this
prospectus is current as of the date of this prospectus. If certain material
provisions under the policy are changed after the date of this prospectus in
accordance with the policy, those changes will be described in a supplement to
this prospectus. You should carefully read this prospectus in conjunction with
any applicable supplements. To make this prospectus easier to read, we
sometimes use different words than the policy. AXA Equitable or your financial
professional can provide any further explanation about your policy.
This policy is no longer being sold. This prospectus is for current policy
owners only. You should note that your policy features and charges, and your
investment options, may vary depending on the state and/or the date on which
you purchased your policy. For more information about the particular features,
charges and options available to you, please contact your financial
professional and/or refer to your policy.
Incentive Life(R) provides life insurance coverage, plus the opportunity for
you to earn a return in our guaranteed interest option and/or one or more of
the following variable investment options:
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT GAMCO Mergers & Acquisitions
. 1290 VT GAMCO Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. American Funds Insurance Series(R) Global Small Capitalization Fund
. American Funds Insurance Series(R) New World Fund(R)
. Charter/SM/ Multi-Sector Bond
. Charter/SM/ Small Cap Growth
. Charter/SM/ Small Cap Value
. EQ/400 Managed Volatility/(1)/
. EQ/500 Managed Volatility/(1)/
. EQ/2000 Managed Volatility/(1)/
. EQ/AB Small Cap Growth/(1)/
. EQ/Aggressive Allocation/(1)/
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/ClearBridge Large Cap Growth/(1)/
. EQ/Common Stock Index
. EQ/Conservative Allocation/(1)/
. EQ/Conservative-Plus Allocation/(1)/
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM(R) Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Global Equity Managed Volatility/(1)/
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Core Managed Volatility/(1)/
. EQ/International Equity Index
. EQ/International Managed Volatility/(1)/
. EQ/International Value Managed Volatility/(1)/
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science and Technology
. EQ/Janus Enterprise/(1)/
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Core Managed Volatility/(1)/
. EQ/Large Cap Growth Index
. EQ/Large Cap Growth Managed Volatility/(1)/
. EQ/Large Cap Value Index
. EQ/Large Cap Value Managed Volatility/(1)/
. EQ/Lazard Emerging Markets Equity
. EQ/Loomis Sayles Growth/(1)/
. EQ/MFS International Growth
. EQ/MFS(R) International Value
. EQ/Mid Cap Index
. EQ/Mid Cap Value Managed Volatility/(1)/
. EQ/Moderate Allocation/(1)/
. EQ/Moderate-Plus Allocation/(1)/
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/UBS Growth and Income
. Fidelity(R) VIP Growth & Income
. Fidelity(R) VIP Mid Cap
. Franklin Mutual Shares VIP
. Franklin Small Cap Value VIP
. Invesco V.I. Mid Cap Core Equity
. Invesco V.I. Small Cap Equity
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
. MFS(R) Investors Trust
. MFS(R) Massachusetts Investors Growth Stock
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
. PIMCO CommodityRealReturn(R) Strategy
. T. Rowe Price Equity Income II
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
. Templeton Developing Markets VIP
. Templeton Global Bond VIP
. Templeton Growth VIP
. VanEck VIP Global Hard Assets
(1)This is the variable investment option's new name, effective on or about
May 20, 2019, subject to regulatory approval. Please see "Portfolios of the
Trusts" later in this prospectus for the variable investment option's former
name.
Amounts that you allocate under your policy to any of the variable investment
options are invested in a corresponding "Portfolio" that is part of one of the
trusts (the "Trusts"), which are mutual funds. Please see "About the Portfolios
of the Trusts" for more information about the Portfolios and the Trusts. Your
investment results in a variable investment option will depend on those of the
related Portfolio. Any gains will generally be tax deferred and the life
insurance benefits we pay if the policy's insured person dies will generally be
income tax free.
OTHER CHOICES YOU HAVE. You have considerable flexibility to tailor the policy
to meet your needs. For example, subject to our rules, you can (1) choose when
and how much you contribute (as "premiums") to your policy, (2) pay certain
premium amounts to guarantee that your insurance coverage will continue for at
least a certain number of years, regardless of investment performance,
(3) borrow or withdraw amounts you have accumulated, (4) change the amount of
insurance coverage, (5) choose between two life insurance benefit options,
(6) elect to receive an insurance benefit if the insured person becomes
terminally ill, and (7) obtain certain optional benefits that we offer by
"riders" to your policy.
OTHER AXA EQUITABLE POLICIES. We offer a variety of fixed and variable life
insurance policies which offer policy features, including investment options,
that are different from those offered by this prospectus. Not every policy is
offered through your financial professional. Replacing existing insurance with
Incentive Life(R) or another policy may not be to your advantage. You can
contact us to find out more about any other AXA Equitable insurance policy.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO
INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
ELECTRONIC DELIVERY OF SHAREHOLDER REPORTS (PURSUANT TO RULE 30E-3). Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper
copies of the shareholder reports for portfolio companies available under your
policy will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Company or from your financial intermediary.
Instead, the reports will be made available on a web-site, and you will be
notified by mail each time a report is posted and provided with a website link
to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically from the
Company or your financial intermediary by calling 1-800-777-6510.
You may elect to receive all future reports in paper free of charge. You can
inform the Company or your financial intermediary that you wish to continue
receiving paper copies of your shareholder reports by calling 1-877-522-5035 or
by sending an email request to EquitableFunds@dfinsolutions.com. Your election
to receive reports in paper will apply to all portfolio companies available
under your policy.
"We,""our," "us" and the "Company" refer to AXA Equitable. "Financial
professional" means the registered representative of either AXA Advisors or an
unaffiliated broker dealer which has entered into a selling agreement with AXA
Distributors who is offering you this policy.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the policy's owner. If
a policy has more than one owner, all owners must join in the exercise of any
rights an owner has under the policy, and the word "owner" therefore refers to
all owners.
When we use the word "state," we also mean any other local jurisdiction whose
laws or regulations affect a policy.
This prospectus does not offer Incentive Life(R) anywhere such offers are not
lawful. AXA Equitable does not authorize any information or representation
about the offering other than that contained or incorporated in this
prospectus, in any current supplements thereto, or in any related sales
materials authorized by AXA Equitable.
This index should help you locate more information on the terms used in this
prospectus.
1. Risk/benefit summary: Policy features, benefits and risks
Incentive Life(R) is a variable life insurance policy that provides you with
flexible premium payment plans and benefits to meet your specific needs. The
basic terms of the policy require you to make certain payments in return for
life insurance coverage. The payments you can make and the coverage you can
receive under this "base policy" are described below.
Riders to your base policy can increase the benefits you receive and affect the
amounts you pay in certain circumstances. Available riders are listed in "Other
benefits you can add by rider" under "More information about policy features
and benefits" later in this prospectus.
PREMIUM PAYMENTS. We call the amounts you contribute to your policy "premiums"
or "premium payments." The amount we require as your first premium varies
depending on the specifics of your policy and the insured person. Each
subsequent premium payment must be at least $100, although we can increase this
minimum if we give you advance notice. (Policies on an automatic premium
payment plan may have different minimums.) Otherwise, with a few exceptions
mentioned below, you can make premium payments at any time and in any amount.
SECTION 1035 EXCHANGES OF POLICIES WITH OUTSTANDING LOANS. If we approve, you
may purchase an Incentive Life(R) policy through an assignment and exchange of
another life insurance policy with a cash surrender value pursuant to a valid
exchange under Section 1035 of the Internal Revenue Code (the "Code"). If such
other policy is subject to a policy loan, we may permit you to carry over all
or a portion of such loan to the Incentive Life(R) policy, subject to our
administrative rules then in effect. In this case, we will treat any cash paid,
plus any loaned amount carried over to the Incentive Life(R) policy, as premium
received in consideration of our issuing the policy. If we allow you to carry
over all or a portion of any such outstanding loan, then we will hold amounts
securing such loan in the same manner as the collateral for any other policy
loan, and your policy also will be subject to all our other rules regarding
loans (see "Borrowing from your policy" later in this prospectus).
YOU CAN GENERALLY PAY PREMIUMS AT SUCH TIMES AND IN SUCH AMOUNTS AS YOU LIKE,
SO LONG AS YOU DON'T EXCEED CERTAIN LIMITS DETERMINED BY THE FEDERAL INCOME TAX
LAWS APPLICABLE TO LIFE INSURANCE.
LIMITS ON PREMIUM PAYMENTS. The federal tax law definition of "life insurance"
limits your ability to pay certain high levels of premiums (relative to the
amount of your policy's insurance coverage). Also, if your premium payments
exceed certain other amounts specified under the Internal Revenue Code, your
policy will become a "modified endowment contract," which may subject you to
additional taxes and penalties on any distributions from your policy. See "Tax
information" later in this prospectus. We may return any premium payments that
would exceed those limits to you.
You can ask your financial professional to provide you with an Illustration of
Policy Benefits that shows you the amount of premiums you can pay, based on
various assumptions, without exceeding these tax law limits. The tax law limits
can change as a result of certain changes you make to your policy. For example,
a reduction in the face amount of your policy may reduce the amount of premiums
that you can pay and may impact whether your policy is a modified endowment
contract.
If at any time when your policy's account value is high enough that the
"alternative higher death benefit" discussed later in this prospectus would
apply, we reserve the right to limit the amount of any premiums that you pay,
unless the insured person provides us with evidence of insurability
satisfactory to us.
PLANNED PERIODIC PREMIUMS. Page 3 of your policy will specify a "planned
periodic premium." This is the amount that you request us to bill you. However,
payment of these or any other specific amounts of premiums is not mandatory.
You need to pay only the amount of premiums (if any) necessary to keep your
policy from lapsing and terminating as discussed below.
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if it does not have enough "net cash surrender value"
to pay your policy's monthly charges when due unless:
. you have paid sufficient premiums to maintain one of our available
guarantees against termination, your policy is still within the period of
that guarantee, and you do not have an outstanding loan (see "You can
guarantee that your policy will not terminate before a certain date" below)
or
. you have elected the "paid up" death benefit guarantee and it remains in
effect, and you do not have an outstanding loan (see "You can elect a "paid
up" death benefit guarantee" below).
("Net cash surrender value" is explained under "Surrendering your policy for
its net cash surrender value" later in this prospectus.)
We will mail a notice to you at your last known address if your policy lapses.
You will have a 61-day grace period to pay at least an amount prescribed in
your policy which would be enough to keep your policy in force for
approximately three months (without regard to investment performance). You may
not make any transfers or request any other policy changes during a grace
period. If we do not receive your payment by the end of the grace period, your
policy (and all riders to the policy) will terminate without value and all
coverage under your policy will cease. We will mail an additional notice to you
if your policy terminates.
YOUR POLICY WILL TERMINATE IF YOU DON'T PAY ENOUGH PREMIUMS (I) TO PAY THE
CHARGES WE DEDUCT OR (II) TO MAINTAIN IN EFFECT ONE OF THE GUARANTEES THAT CAN
KEEP YOUR POLICY FROM TERMINATING. HOWEVER, WE WILL FIRST SEND YOU A NOTICE AND
GIVE YOU THE OPPORTUNITY TO PAY ANY SHORTFALL.
You may owe taxes if your policy terminates while you have a loan outstanding,
even though you receive no additional money from your policy at that time. See
"Tax information," later in this prospectus.
RESTORING A TERMINATED POLICY. To have your policy "restored" (put back in
force), you must apply within six months after the date of termination. In some
states, you may have a longer period of time. You must also (i) present
evidence of insurability satisfactory to us; and (ii) pay at least the amount
of premium that we require. The amount of payment will not be more than an
amount sufficient to cover (i) total monthly deductions for 3 months,
calculated from the effective date of restoration; (ii) any excess of the
applicable surrender charge on the date of restoration over the surrender
charge that was deducted on the date of default; and (iii) the premium charge.
We will determine the amount of this required payment as if no interest or
investment performance were credited to or charged against your policy account.
Your policy contains additional information about the minimum amount of this
premium and about the values and terms of the policy after it is restored and
the effective date of such restoration. You may only restore your policy if it
has terminated without value. You may not restore a policy that was given up
for its net cash surrender value.
You can generally guarantee that your policy will not terminate for a number of
years by paying at least certain specified amounts of premiums. We call these
amounts "guarantee premiums" and they will be set forth on page 3 of your
policy. In most states you have three options for how long the guarantee will
last. One of these options is discussed below under "Enhanced death benefit
guarantee." The other two guarantee options are as follows:
(1)a guarantee for the first five years of your policy (the policy calls this
the "no-lapse guarantee")
(2)a guarantee until the insured reaches age 70, but in no case less than 10
years (the policy calls this the "death benefit guarantee"). If your policy
is issued with the Incentive Term rider, the "death benefit guarantee" is
not available. See the Incentive Term rider section under "Other benefits
you can add by rider" later in this prospectus, for more information.
In some states, these guarantees may be unavailable, limited to shorter
periods, or referred to by different names.
We make no extra charge for either of these two guarantees against policy
termination. However, in order for either of those guarantees to be available,
you must have satisfied the "guarantee premium test" (discussed in "Guarantee
premium test for no-lapse guarantees" under "More information about policy
features and benefits" later in this prospectus) and you must not have any
outstanding policy loans. Maintaining the "age 70/10 year" guarantee against
policy termination (where available) will require you to pay more premiums than
maintaining only the five-year guarantee.
IF YOU PAY AT LEAST CERTAIN PRESCRIBED AMOUNTS OF PREMIUMS, AND HAVE NO POLICY
LOANS, YOUR POLICY WILL NOT TERMINATE FOR A NUMBER OF YEARS, EVEN IF THE VALUE
IN YOUR POLICY BECOMES INSUFFICIENT TO PAY THE MONTHLY CHARGES.
ENHANCED DEATH BENEFIT GUARANTEE. On your application for a policy, you may
elect an enhanced death benefit guarantee rider, that will guarantee your
policy against termination for a longer period of time than either of the two
guarantee options described above. If elected, a monthly charge of $0.02 per
$1,000 of the policy's face amount is deducted from your account value for this
guarantee. To elect this feature, all of your policy's account value must be
allocated to our variable investment options.
While the enhanced death benefit guarantee is in effect, your policy will not
lapse, even if your net cash surrender value is insufficient to pay a monthly
deduction that has become due, as long as you do not have an outstanding loan
(or you repay the loan within the 61-day grace period). This guarantee is
available for the following periods:
(a)If you have always chosen death benefit Option A, for the life of the
insured person; or
(b)If you have ever selected death benefit Option B (even if you subsequently
changed it to Option A), until the later of the policy anniversary nearest
to when the insured person reaches age 80 or the end of the 15th year of the
policy.
This option is not available in all states or if your policy is issued with the
Incentive Term rider.
If you have elected the enhanced death benefit guarantee, we test on each
policy anniversary to see if the required premium (the enhanced death benefit
"guarantee premium") has been paid. (The enhanced death benefit guarantee
premium will be set forth on page 3 of your policy on a monthly basis.) The
required premium has been paid if the total of all premiums paid, less all
withdrawals, is at least equal to the total of all enhanced death benefit
guarantee premiums due to date. Unlike the test for the shorter duration
guarantees discussed above, we do not compound these amounts using any
hypothetical interest rate.
If the required premium has not been paid as of any policy anniversary, we will
mail you a notice requesting that you send us the shortfall. If we do not
receive this additional premium, the enhanced death benefit guarantee will
terminate. The enhanced death benefit guarantee also will terminate if you
request that we cancel it, or if you allocate any value to our guaranteed
interest option. If the enhanced death benefit guarantee terminates, the
related charge terminates, as well. Once terminated, this guarantee can never
be reinstated or restored.
Under certain circumstances and subject to our approval, you may elect to take
advantage of our "paid up" death benefit guarantee at any time after the fourth
year of your policy. If you elect the paid up death benefit guarantee, we may
initially reduce your base policy's face amount (see below). Thereafter, your
policy will not lapse and the death benefit will never be less than the base
policy's face amount, so long as the guarantee remains in effect. The guarantee
will terminate, however, if (i) at any time following the election, the sum of
any outstanding policy loans, accrued interest, and any "restricted" amount due
to exercise of a living benefits rider, together with any then applicable
surrender charge, exceeds your policy's account value, or if (ii) you request
us to terminate the election. For more information about the circumstances
under which you can elect
the paid-up death benefit, the possible reduction in face amount after this
guarantee is elected, (including the possible imposition of surrender charges
upon such reduction), and other effects of this guarantee on your policy, see
"Paid up death benefit guarantee" under "More information about policy features
and benefits" later in this prospectus.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS A MODIFIED ENDOWMENT
CONTRACT. Any distribution from your policy will be taxed on an "income-first"
basis if your policy is a modified endowment contract. Distributions for this
purpose include a loan (including any increase in the loan amount to pay
interest on an existing loan or an assignment or a pledge to secure a loan) or
withdrawal. Any such distributions will be considered taxable income to you to
the extent your account value exceeds your basis in the policy. (For modified
endowment contracts, your basis is similar to the basis described above for
other policies, except that it also would be increased by the amount of any
prior loan under your policy that was considered taxable income to you.)
For purposes of determining the taxable portion of any distribution, all
modified endowment contracts issued by AXA Equitable (or its affiliates) to the
same owner (excluding certain qualified plans) during any calendar year are
treated as if they were a single contract.
A 10% penalty tax also will apply to the taxable portion of most distributions
from a policy that is a modified endowment contract. The penalty tax will not,
however, apply to (i) taxpayers whose actual age is at least 59 1/2,
(ii) distributions in the case of a disability (as defined in the Code) or
(iii) distributions received as part of a series of substantially equal
periodic annuity payments for the life (or life expectancy) of the taxpayer or
the joint lives (or joint life expectancies) of the taxpayer and his or her
beneficiary. The exceptions generally do not apply to life insurance policies
owned by corporations or other entities.
IF YOUR POLICY TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN
OUTSTANDING POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A
DISTRIBUTION (to the extent the loan was not previously treated as such) and
could be subject to tax, including the 10% penalty tax, as described above. In
addition, upon a full surrender, any excess of the proceeds we pay (including
any amounts we use to discharge any loan) over your basis in the policy, will
be subject to federal income tax and, unless an exception applies, the 10%
penalty tax.
Distributions that occur during a year of your policy in which it becomes a
modified endowment contract, and during any subsequent years, will be taxed as
described in the four preceding paragraphs. In addition, distributions from a
policy within two years before it becomes a modified endowment contract also
will be subject to tax in this manner. This means that a distribution made from
a policy that is not a modified endowment contract could later become taxable
as a distribution from a modified endowment contract. So, for example, if a
policy has been collaterally assigned as security for a loan and the policy
subsequently becomes a MEC there could be a taxable deemed distribution even
though the policy owner has not received any payment from us.
POLICY CHANGES. Changes made to a life insurance policy, for example, a
decrease in benefits, a death benefit option change, or the termination or
restoration of a terminated policy, may have other effects on your policy,
including impacting the maximum amount of premiums that can be paid under the
policy. In some cases, this may cause us to take action in order to assure your
policy continues to qualify as life insurance, including distribution of
amounts that may be includable as income. This action may be required under the
tax law even though the policy may not be sufficiently funded to keep it in
force for a desired duration. In some cases, premium payments for a policy year
could be limited to the amount needed to keep the policy in force until the end
of the policy year. You should carefully go over the implications of any policy
changes with your advisor before making a change.
RESTORATION OF A TERMINATED POLICY. For tax purposes, some restorations of a
policy that terminated after a grace period may be treated as the purchase of a
new policy. Since tax laws and regulations and their application may have
changed by such time, there can be no assurance that we can reinstate the
policy to qualify as life insurance under future tax rules.
34
TAX INFORMATION
TAX TREATMENT OF LIVING BENEFITS PROCEEDS
Amounts received under an insurance policy on the life of an individual who is
terminally ill, as defined by the tax law, are generally excludable from the
payee's gross income as an accelerated death benefit. We believe that the
benefits provided under our living benefits rider meet the tax law's definition
of terminally ill and can qualify for this income tax exclusion. This exclusion
does not apply to amounts paid to someone other than the insured person if the
payee has an insurable interest in the insured person's life only because the
insured person is a director, officer or employee of the payee or by reason of
the insured person being financially interested in any trade or business
carried on by the payee.
BUSINESS AND EMPLOYER OWNED POLICIES
Any employer owned life insurance arrangement on an employee or director as
well as any corporate, trade, or business use of a policy should be carefully
reviewed by your tax advisor with attention to the rules discussed below. Also,
careful consideration should be given to any other rules that may apply,
including other possible pending or recently enacted legislative proposals.
REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS. Federal tax law imposes
additional requirements for employer owned life insurance policies. The
provisions can have broad application for contract owners engaged in a trade or
business, or certain related persons. These requirements include detailed
notice and consent rules, annual tax reporting and recordkeeping requirements
on the employer and limitations on those employees (including directors) who
can be insured under the life insurance policy. Failure to satisfy applicable
requirements will result in death benefits in excess of premiums paid by the
owner being includible in the owner's income upon the death of the insured
employee. Notice and consent requirements must be satisfied before the issuance
of the life insurance policy or a material change to an existing life insurance
policy, otherwise benefits may lose their tax favored treatment.
The rules generally apply to life insurance policies issued after August 17,
2006. Note, however, that material increases in the death benefit or other
material changes will generally cause an existing policy to be treated as a new
policy and thus subject to the new requirements. The term "material" has not
yet been fully defined but is expected to not include automatic increases in
death benefits in order to maintain compliance with the life insurance policy
tax qualification rules under the Code. An exception for certain tax-free
exchanges of life insurance policies pursuant to Section 1035 of the Code may
be available but is not clearly defined.
LIMITATIONS ON INTEREST DEDUCTIBILITY FOR BUSINESS OWNED LIFE
INSURANCE. Ownership of a policy by a trade or business can limit the amount of
any interest on business borrowings that the entity otherwise could deduct for
federal income tax purposes, even though such business borrowings may be
unrelated to the policy. To avoid the limit, the insured person must be an
officer, director, employee or 20% owner of the trade or business entity when
coverage on that person commences.
The limit does not generally apply for policies owned by natural persons (even
if those persons are conducting a trade or business as sole proprietorships),
unless a trade or business entity that is not a sole proprietorship is a direct
or indirect beneficiary under the policy. Entities commonly have such a
beneficial interest, for example, in so-called "split-dollar" arrangements. If
the trade or business entity has such an interest in a policy, it will be
treated the same as if it owned the policy for purposes of the limit on
deducting interest on unrelated business income.
The limit generally applies only to policies issued after June 8, 1997 in
taxable years ending after such date. However, for this purpose, any material
change in a policy will be treated as the issuance of a new policy.
In cases where the above-discussed limit on deductibility applies, the
non-deductible portion of unrelated interest on business loans is determined by
multiplying the total amount of such interest by a fraction. The numerator of
the fraction is the policy's average account value (excluding amounts we are
holding to secure any policy loans) for the year in question, and the
denominator is the average for the year of the aggregate tax bases of all the
entity's other assets. The above limitation is in addition to rules limiting
interest deductions on policy loans against business-owned life insurance.
Special rules apply to insurance company owners of policies which may be more
restrictive.
USES OF POLICY WHICH MAY BE SCRUTINIZED. The IRS may view certain uses of life
insurance policies as a tax shelter or as an abusive transaction. Please
consult your tax advisor for the most up-to-date information as to IRS
"Recognized Abusive and Listed Transactions" and how they may affect your
policy.
REQUIREMENT THAT WE DIVERSIFY INVESTMENTS
Under Section 817(h) of the Code, the Treasury Department has issued
regulations that implement investment diversification requirements. Failure to
comply with these regulations would disqualify your policy as a life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to federal income tax on any income and gains under the policy and the
death benefit proceeds would lose their income tax-free status. These
consequences would continue for the period of the disqualification and for
subsequent periods. Through the Portfolios, we intend to comply with the
applicable diversification requirements, though no assurances can be given in
this regard.
ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
If the policy's owner is the insured person, the death benefit will generally
be includable in the owner's estate for purposes of federal estate tax. If the
owner is not the insured person, and the owner dies before the insured person,
the value of the policy would be includable in the owner's estate. If the owner
is neither the insured person nor the beneficiary, the owner will be considered
to have made a gift to the beneficiary of the death benefit proceeds when they
become payable.
In general, a person will not owe estate or gift taxes until gifts made by such
person, plus that person's taxable estate, total at least $10 million (this
statutory amount is to be indexed for inflation after 2010). A portability rule
generally permits a surviving spouse to elect to carry over the unused portion
of the deceased spouse's exclusion amount.
Certain amounts may be deductible or excludable, such as gifts and bequests to
a person's spouse or charitable institutions, as well as for certain gifts per
recipient per year ($15,000 for 2019 indexed for inflation).
As a general rule, if you make a "transfer" to a person two or more generations
younger than you, a generation-skipping tax may be payable. Generation-skipping
transactions would include, for example, a case where a grandparent "skips" his
or her children and names his or her grandchildren as a policy's beneficiaries.
In that case, the generation-skipping "transfer" would be deemed to occur when
the insurance proceeds are paid. The generation-skipping tax
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TAX INFORMATION
rates are similar to the maximum estate tax rates in effect at the time.
Individuals, however are generally allowed an aggregate generation-skipping tax
exemption of the same amount discussed above for estate and gift taxes, but
without portability.
The particular situation of each policy owner, insured person or beneficiary
will determine how ownership or receipt of policy proceeds will be treated for
purposes of federal estate, gift and generation-skipping taxes, as well as
state and local estate, inheritance and other taxes. Because these rules are
complex, you should consult with a qualified tax adviser for specific
information, especially where benefits are passing to younger generations.
If this policy is used with estate and gift tax planning in mind, you should
consult with your tax advisor as to the most up-to-date information as to
federal estate, gift and generation skipping tax rules.
PENSION AND PROFIT-SHARING PLANS
There are special limits on the amount of insurance that may be purchased by a
trust or other entity that forms part of a pension or profit-sharing plan
qualified under Section 401(a) or 403 of the Code. In addition, the federal
income tax consequences will be different from those described in this
prospectus. These rules are complex, and you should consult a qualified tax
advisor.
SPLIT-DOLLAR AND OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may also apply when a policy is held by an employer or a trust,
or acquired by an employee, in connection with the provision of other employee
benefits. Employees may have imputed income for the value of any economic
benefit provided by the employer. There may be other tax implications, as well.
It is possible that certain split-dollar arrangements may be considered to be a
form of deferred compensation under Section 409A of the Code, which broadens
the definition of deferred compensation plans, and subjects such plans to new
requirements. Further, certain split-dollar arrangements may come within the
rules for business- and employer-owned policies. Among other issues, policy
owners must consider whether the policy was applied for by or issued to a
person having an insurable interest under applicable state law and with the
insured person's consent. The lack of an insurable interest or consent may,
among other things, affect the qualification of the policy as life insurance
for federal income tax purposes and the right of the beneficiary to receive a
death benefit.
If this policy is being or was purchased pursuant to a split-dollar
arrangement, you should also consult your tax advisor for advice concerning the
effect of the following guidance. In 2002, the IRS issued Notice 2002-8
concerning the taxation of split-dollar life insurance arrangements as well as
regulations in both 2002 and 2003. They provide for taxation under one of two
mutually exclusive regimes depending upon the structure of the arrangement.
These are a loan regime and an economic benefit regime. Transition and
grandfathering rules, among other items, should be carefully reviewed when
considering such arrangements. A material modification to an existing
arrangement may result in a change in tax treatment. In addition, public
corporations (generally publicly-traded or publicly-reporting companies) and
their subsidiaries should consider the possible implications on split-dollar
arrangements of the Securities Exchange Act of 1934 which generally prohibit
certain direct or indirect loans to executive officers or directors. At least
some split-dollar arrangements could be deemed to involve loans within the
purview of that section.
ERISA
Employers and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement Income Security Act of
1974. There may also be other implications. You should consult a qualified
legal advisor.
3.8% TAX ON NET INVESTMENT INCOME OR "NII"
The 3.8% Medicare tax on certain unearned income of taxpayers whose adjusted
incomes exceed certain thresholds applies to all or part of a taxpayer's NII.
As currently interpreted under IRS guidelines, NII includes the taxable portion
of an annuitized payment from a life insurance contract. It has not been
defined to include taxable amounts from partial withdrawals, surrenders or
lapses of life insurance policies subject to loans. You should consult your tax
advisor as to the applicability of this tax to you.
OUR TAXES
The operations of our separate accounts are reported in our federal income tax
return. Separate account investment income and capital gains, however, are, for
tax purposes, reflected in our variable life insurance policy reserves.
Currently we pay no taxes on such income and gains and impose no charge for
such taxes. We reserve the right to impose a charge in the future for taxes
incurred by us that are allocable to the policies.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate accounts. These tax benefits, which
may include the foreign tax credit and the corporate dividends received
deduction, are not passed back to you, since we are the owner of the assets
from which tax benefits may be derived.
TAX WITHHOLDING AND INFORMATION REPORTING
STATUS FOR INCOME TAX PURPOSES; FATCA. In order for us to comply with income
tax withholding and information reporting rules which may apply to life
insurance policies, we request documentation of "status" for tax purposes.
"Status" for tax purposes generally means whether a person is a "U S. person"
or a foreign person with respect to the United States; whether a person is an
individual or an entity, and if an entity, the type of entity. Status for tax
purposes is best documented on the appropriate IRS Form or substitute
certification form (IRS Form W-9 for a U.S. person or the appropriate type of
IRS Form W-8 for a foreign person). If we do not have appropriate certification
or documentation of a person's status for tax purposes on file, it could affect
the rate at which we are required to withhold income tax, and penalties could
apply. Information reporting rules could apply not only to specified
transactions, but also to life insurance policy ownership. For example, under
the Foreign Account Tax Compliance Act ("FATCA"), which applies to certain
U.S.-source payments, and similar or related withholding and information
reporting rules, we may be required to report policy values and other
information for certain policyholders. For this reason, we and our affiliates
intend to require appropriate status documentation at purchase, change of
ownership, and affected payment transactions, including death benefit payments.
FATCA and its related guidance is extraordinarily complex and its effect varies
considerably by type of payor, type of payee and type of recipient.
TAX WITHHOLDING. Generally, unless you provide us with a satisfactory written
election to the contrary prior to the distribution, we
36
TAX INFORMATION
are required to withhold income tax from any proceeds we distribute as part of
a taxable transaction under your policy. If you do not wish us to withhold tax
from the payment, or if we do not withhold enough, you may have to pay later,
and you may incur penalties under the estimated income tax rules. In some
cases, where generation skipping taxes may apply, we may also be required to
withhold for such taxes unless we are provided satisfactory notification that
no such taxes are due. States may also require us to withhold tax on
distributions to you and may not always follow federal rules.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U.S. entity recipients which
are treated as foreign because they fail to document their U.S. status before
payment is made. We do not discuss these rules here in detail. However, we may
require additional documentation in the case of payments made to United States
persons living abroad and non-United States persons (including U.S. entities
treated as foreign) prior to processing any requested transaction. For Puerto
Rico and other jurisdictions, income is considered U.S.-source income. We
anticipate requiring owners or beneficiaries in Puerto Rico which are not
individuals to document their status to avoid 30% FATCA withholding from
U.S.-source income.
POSSIBILITY OF FUTURE TAX CHANGES AND OTHER TAX INFORMATION
The U.S. Congress frequently considers legislation that, if enacted, could
change the tax treatment of life insurance policies or increase the taxes we
pay in connection with such policies. This could include special rules for
tax-exempt entities as well as for corporate or business owner policies. In
addition to legislation enacted in December 2017, Congress may also consider
further proposals to comprehensively reform or overhaul the United States tax
and retirement systems, which if enacted, could affect the tax benefits of a
life insurance policy. Legislative proposals could make sweeping changes to
many longstanding tax rules, including certain tax benefits currently available
to newly purchased cash value life insurance policies. Proposals have been
considered to eliminate some or all taxable expenditures or tax preferences
together with some lowering of tax rates. We cannot predict what, if any,
legislation will actually be proposed or enacted or what type of grandfathering
will be allowed for existing life insurance policies. In addition, the Treasury
Department may amend existing regulations, issue regulations on the
qualification of life insurance and modified endowment contracts, or adopt new
or clarifying interpretations of existing law. Some areas of possible future
guidance include new rules for testing for policies issued on a special risk
class basis. As a result, there are areas of some uncertainty even under
current laws, such that future tax consequences of a policy could be other than
as described herein.
State and local tax law or, if you are not a U.S. citizen and resident, foreign
tax law, may also affect the tax consequences to you, the insured person or
your beneficiary, and are subject to change or change in interpretation. Any
changes in federal, state, local or foreign tax law or interpretations could
have a retroactive effect both on our taxes and on the way your policy is taxed
or the tax benefit of life insurance policies.
2009 OR LATER INCREASES IN BENEFITS OR COVERAGE, ADDITION OF RIDERS, OR CERTAIN
OTHER POLICY CHANGES
In addition to the other tax effects that an increase or decrease in benefits
under your policy may have as discussed earlier in this tax information
section, several IRS Notices collectively provide special guidance concerning
the mortality charge assumptions permitted for federal income tax testing
purposes for certain changes made in 2009 or later to policies issued prior to
2009 based on 1980 Commissioners Standard Ordinary ("1980 CSO") mortality
tables.
The Notices provide "safe harbor" guidance which would not require certain 2009
or later changes to cause tax testing to become subject to any prevailing
mortality tables subsequent to the 1980 CSO mortality tables. This safe harbor
guidance covers certain changes that are pursuant to the terms of the policy,
including the addition or removal of a rider and an increase or decrease in the
death benefit. If we determine that a transaction would cause your policy to
lose its ability to be tax tested under the 1980 CSO mortality tables under
which your policy operates, we intend to refuse such 2009 or later transactions
which might otherwise have been available under your policy, subject to our
rules then in effect. We would take such action to help assure that your policy
can continue to qualify as life insurance for federal tax testing under the
1980 CSO mortality tables. Certain ratings changes and requests for
substitution of the insured will not be permitted in the absence of further
guidance. There can be no assurance as to whether such guidance will be
provided or what any such guidance may provide.
OTHER INFORMATION
There are a number of tax benefits associated with variable life insurance
policies. For tax benefits to be available, the policy owner must have an
insurable interest in the life of the insured under applicable state laws.
Requirements may vary by state. A failure can, among other consequences, cause
the policy owner to lose anticipated favorable federal tax treatment generally
afforded life insurance.
For tax benefits to continue, the policy must continue to qualify as life
insurance. We reserve the right to restrict transactions that we determine
would cause your policy to fail to qualify as life insurance under federal tax
law. In addition to other requirements, federal tax law requires that the
insurer, and not the policy owner, have control of the underlying investment
assets for the policy to qualify as life insurance.
You may make transfers among Portfolios of the Separate Account, but you may
not direct the investments each Portfolio makes. If the IRS were to conclude
that you, as the investor, have control over these investments, then the policy
would no longer qualify as life insurance. You would be treated as the owner of
separate account assets and be currently taxed on any taxable income or gain
the assets generate.
The IRS has provided some guidance on this question of investor control, but
many issues remain unclear. One such issue is whether a policy owner can have
too much investor control if the variable life policy offers a large number of
investment options in which to invest account values and/or the ability to make
frequent transfers under the policy. We do not know if the IRS will provide any
further guidance on the issue. If guidance is provided, we do not know if it
would apply retroactively to policies already in force.
We believe that our variable life policies do not give policy owners investment
control over the investments underlying the various investment options;
however, the IRS could disagree with our position. The IRS could seek to treat
policy owners with a large number of investment options and/or the ability to
freely transfer among investment options as the owners of the underlying
Portfolio's shares. Accordingly, we reserve the right to modify your policy as
necessary to attempt to prevent you from being considered the owner of your
policy's proportionate share of the assets of the Separate Account.
37
TAX INFORMATION
9. More Information about policy features and benefits
ALTERNATIVE HIGHER DEATH BENEFIT IN CERTAIN CASES
The basic Option A and Option B death benefits are described under "About your
life insurance benefit" in "Risk/benefit summary: Policy features, benefits and
risks" earlier in this prospectus.
We will automatically pay an alternative death benefit if it is HIGHER than the
basic Option A or Option B death benefit you have selected. This alternative
death benefit is computed by multiplying your policy's account value on the
insured person's date of death by a percentage specified in your policy. The
percentage depends on the insured person's age. Representative percentages are
as follows:
IF THE ACCOUNT VALUE IN YOUR POLICY IS HIGH ENOUGH, RELATIVE TO THE FACE
AMOUNT, THE LIFE INSURANCE BENEFIT WILL AUTOMATICALLY BE GREATER THAN THE
OPTION A OR OPTION B DEATH BENEFIT YOU HAVE SELECTED.
--------------------------------------------------------------------------------
AGE* 40 AND UNDER 45 50 55 60 65
--------------------------------------------------------------------------------
%: 250% 215% 185% 150% 130% 120%
--------------------------------------------------------------------------------
AGE: 70 75-95 99-OVER
--------------------------------------------------------------------------------
%: 115% 105% 101%
--------------------------------------------------------------------------------
|
* For the then-current policy year.
This higher alternative death benefit exposes us to greater insurance risk than
the regular Option A and B death benefits. Because the cost of insurance
charges we make under your policy are based in part on the amount of our risk,
you will pay more cost of insurance charges for any periods during which the
higher alternative death benefit is the operative one.
The alternative higher death benefit is a component of the Option A and Option
B death benefits that will be paid (if higher) in order for the Incentive
Life(R) policy to satisfy the definition of "life insurance contract" under
Section 7702 of the Code. In general, for a policy to be treated as a life
insurance contract under the Code, it must pass one of two tests, the cash
value accumulation test or the guideline premium/ cash value corridor test.
Only the guideline premium/cash value corridor test applies to the Incentive
Life(R) policy. Under the guideline premium requirement, the sum of the
premiums paid under the policy may not at any time exceed the greater of the
guideline single premium or the sum of the guideline level premiums, for the
benefits promised under the policy. Under the cash value corridor requirement,
the death benefit at any time must be equal to or greater than the applicable
percentage of policy account value specified in Section 7702(c) of the Code. We
apply these principles to both Option A and Option B death benefits.
The operative period for the higher alternative death benefit is determined in
connection with the requirements of the Code. The calculation of the death
benefit is built into the monthly calculation of the cost of insurance charge,
which is based on the net amount at risk. The need for the higher alternative
death benefit is assessed on each monthly anniversary date, and on the death of
the insured. Each policy owner receives an annual statement showing various
policy values. The annual statement shows the death benefit amount as of the
policy anniversary, and that amount would reflect the alternative higher death
benefit amount, if applicable at that time. This annual statement also reflects
the monthly cost of insurance charge for the policy year, reflecting a higher
net amount at risk in those months when the higher alternative death benefit is
in effect.
OTHER ADJUSTMENTS TO DEATH BENEFIT. We will increase the death benefit proceeds
by the amount of any other benefits we owe upon the insured person's death
under any optional riders which are in effect.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loans and unpaid loan interest, as well as any amount of monthly charges
under the policy that remain unpaid because the insured person died during a
grace period. We also reduce the death benefit if we have already paid part of
it under a living benefits rider. We reduce it by the amount of the living
benefits payment plus interest. See "Your option to receive a terminal illness
living benefit" earlier in this prospectus.
GUARANTEE PREMIUM TEST FOR NO-LAPSE GUARANTEES
We offer two guarantees against policy lapse that depend on your having paid
specified amounts of premiums. We refer to these two guarantees as our
"no-lapse guarantee" and our "death benefit guarantee," and you can read more
about them in "You can guarantee that your policy will not terminate before a
certain date" in "Risk/ benefit summary: Policy features, benefits and risks,"
earlier in this prospectus.
GUARANTEE PREMIUM TEST. If your policy's net cash surrender value is not
sufficient to pay a monthly deduction that has become due, we check to see if
the cumulative amount of premiums that you have paid to date at least equals
the cumulative guarantee premiums due to date for either the no-lapse guarantee
or death benefit guarantee discussed under "You can guarantee that your policy
will not terminate before a certain date," in "Risk/benefit summary: Policy
features, benefits and risks," earlier in this prospectus, that are then
available under your policy. If it does, your policy will not lapse, provided
that you have no policy loans outstanding (or you repay all of such loans
before the end of the 61-day grace period mentioned in "The minimum amount of
premiums you must pay" under "Risk/benefit summary: Policy features, benefits
and risks") and provided that the period of the corresponding guarantee has not
expired.
When we calculate the cumulative amount of guarantee premiums for the no-lapse
or death benefit guarantees, we compound each amount at a 4% annual interest
rate from its due date through the date of the calculation. (This interest rate
is only for purposes of determining whether you have satisfied the guarantee
test for an available duration. It does not bear any relation to the returns
you will actually earn or any loan interest you will actually pay.) We use the
same calculation for determining the cumulative amount of premiums paid,
beginning with the date each premium is received. The amount of premiums you
must pay to maintain a guarantee against termination will be increased by the
cumulative amount of any partial withdrawals you have taken from your policy
(calculated by the same method, beginning with the date of withdrawal).
38
MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
GUARANTEE PREMIUMS. The amount of the guarantee premiums for each of the
guarantee options is set forth in your policy on a monthly basis, if that
guarantee is available to you. The guarantee premiums are actuarially
determined at policy issuance and depend on the age and other insurance risk
characteristics of the insured person, as well as the amount of the coverage
and additional features you select. Certain additional benefit riders will
cause the guarantee premiums to increase after policy issue. The guarantee
premiums also may change if, for example, the face amount of the policy or a
rider changes, a rider is added or eliminated, or if there is a change in the
insured person's risk characteristics. We will send you a new policy page
showing any change in your guarantee premiums. Any change will be prospective
only, and no change will extend a guarantee period beyond its original number
of years.
If you want to be billed for a guarantee premium amount, you must specify a
planned periodic premium that at least equals the guarantee premium that you
plan to pay. If you want your bills for planned periodic premiums to cover your
guarantee premiums, please remember to change your planned periodic premium
amount, as necessary, if you take any action that causes your guarantee
premiums to change.
PAID UP DEATH BENEFIT GUARANTEE
Subject to our approval, you may elect the "paid up" death benefit guarantee at
any time after the fourth year. This benefit provides an opportunity to lock in
all or a portion of your policy's death benefit without making additional
premium payments. Also, this benefit may be attractive to you if you are
concerned about the impact of poor future investment performance or increases
in policy charges on your policy's death benefit and potential policy lapse.
You may elect this benefit provided:
. you have death benefit "Option A" in effect (see "About your life insurance
benefit" in "Risk/benefit summary: Policy features, benefits and risks,
"earlier in this prospectus);
. you terminate any additional benefit riders, including the Incentive Term
rider;
. the election must not cause the policy to lose its qualification as life
insurance under the Internal Revenue Code or require a distribution from
the policy to avoid such disqualification; and
. the election must not reduce the face amount (see below) to less than the
minimum face amount for which we would then issue a policy.
The paid up death benefit guarantee applies only to your base policy's face
amount, and not to the face amount or other coverage under any riders that (as
noted above) must be terminated when the guarantee is elected. As explained
below, electing the paid up death benefit guarantee may reduce your policy's
face amount, which in turn may result in the deduction of a surrender charge.
You can request a personalized illustration that will show you how your policy
face amount could be reduced and values could be affected by electing the paid
up death benefit guarantee.
POSSIBLE REDUCTION OF FACE AMOUNT. The face amount of your policy after this
guarantee is elected is the lesser of (a) the face amount immediately before
the election or (b) the policy account value divided by a factor based on the
then age of the insured person. The factors are set forth in your policy. As a
general matter, the factors change as the insured person ages so that, if your
account value stayed the same, the result of the calculation under clause
(b) above would be lower the longer your policy is in force.
If electing the paid up death benefit guarantee causes a reduction in face
amount, we will deduct the same portion of any remaining surrender charge as we
would have deducted if you had requested that decrease directly (rather than
electing the paid up death benefit guarantee). (See "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus.)
OTHER EFFECTS OF THIS GUARANTEE. You generally may continue to pay premiums
after you have elected the paid up death benefit guarantee (subject to the same
limits as before), but premium payments are not required. If the election
causes your face amount to decrease, however, the amount of additional premiums
you are permitted to pay, if any, may be reduced. You may continue to make
transfers, but you may not change the death benefit option or add riders that
have their own charges while the paid up death benefit guarantee is in effect.
Partial withdrawals while the paid up death benefit guarantee is in effect will
generally be subject to the same terms and conditions as any other partial
withdrawal (see "Making withdrawals from your policy" earlier in this
prospectus), except that:
. We may decline your request for a partial withdrawal (or any other policy
change) under the circumstances described in the paid up death benefit
guarantee policy endorsement. If this occurs, you may wish to consider
asking us to terminate the paid up death benefit guarantee.
. Partial withdrawals (and any distributions we may be required to make for
tax purposes) will generally reduce your policy's face amount by more than
the amount of the withdrawal.
The election of the paid up death benefit guarantee may cause your policy to
become a modified endowment contract under certain circumstances. See "Tax
treatment of distributions to you" under "Tax information," earlier in this
prospectus. You should consult your tax advisor before making this election.
OTHER BENEFITS YOU CAN ADD BY RIDER
You may be eligible for the following other optional benefits made available by
rider:
. term insurance on the insured person (Incentive Term rider) (see "The
Incentive Term rider" in "About your life insurance benefit" under
"Risk/benefit summary: Policy features, benefits and risks")
. disability waiver benefits
. accidental death benefit
. option to purchase additional insurance
. cost-of-living rider
. children's term insurance
. ten-year renewable term insurance on the insured person or an additional
insured person
. enhanced death benefit guarantee (see "Enhanced death benefit guarantee" in
"You can guarantee that your policy will not
39
MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
terminate before a certain date" under "Risk/benefit summary: Policy
features, benefits and risks")
We add the following benefits automatically at no charge to each eligible
policy:
. substitution of insured person rider (see "You can change your policy's
insured person" under "More information about procedures that apply to your
policy")
. waiver of surrender charge due to tax law change rider (for certain future
federal estate tax repeal situations)
. living benefits rider
. accounting benefit endorsement (see below)
. paid up death benefit guarantee (see "Paid up death benefit guarantee"
earlier in this section)
AXA Equitable or your financial professional can provide you with more
information about these riders. Some of these riders may be selected only at
the time your policy is issued. Some benefits may not be available in your
state. Some benefits are not available in combination with others. The riders
provide additional terms, conditions and limitations, and we will furnish
samples of them to you on request. We can add, delete, or modify the riders we
are making available, at any time before they become effective as part of your
policy.
See also "Tax information" earlier in this prospectus for certain possible tax
consequences and limitations of deleting riders or changing the death benefits
under a rider.
ACCOUNTING BENEFIT ENDORSEMENT
Subject to the conditions discussed below, AXA Equitable offered an Endorsement
to your policy (the "Endorsement") that refunded or waived all or a portion of
certain policy charges if the policy is surrendered for its net cash surrender
value within a limited time period.
Under our current rules, the Endorsement was offered where the following
conditions were met:
. policies are corporately owned, or were "split-dollar" cases that are
collaterally assigned to the company;
. the persons proposed to be insured were deemed by us to be "highly
compensated" individuals;
. the minimum initial premium under each policy was remitted to AXA Equitable
by the employer; and
. the aggregate annualized first year planned periodic premium was at least
$150,000 if a minimum of three policies is issued, each on the life of a
different insured person, and at least $500,000 if less than three policies
were issued.
Eligible cases were issued with the accounting benefit endorsement unless the
policy owner requested us in writing to not include the Endorsement.
The Endorsement reduces the difference between the premiums paid for the policy
and the amount we will pay you if the policy is surrendered in its early years.
This, in turn, is expected to reduce any charge against the employer's earnings
when the employer accounts for the policy under generally accepted accounting
principles (GAAP). Policy owners must rely on the advice of their own
accountants, however, to determine how the purchase of a policy, as modified by
the Endorsement, will affect their GAAP financial statements.
The Endorsement works by refunding all or a portion of the deductions from
premiums and waiving all or a portion of the surrender charges, if the policy
is surrendered in its early years. The percentage of charges refunded or waived
under the Endorsement are as follows:
------------------------------------------------------------
SURRENDER IN POLICY PERCENT OF PREMIUM PERCENT OF SURRENDER
YEAR DEDUCTION REFUNDED CHARGES WAIVED
------------------------------------------------------------
1 100% 100%
------------------------------------------------------------
2 67% 80%
------------------------------------------------------------
3 33% 60%
------------------------------------------------------------
4 0% 40%
------------------------------------------------------------
5 0% 20%
------------------------------------------------------------
6 and later 0% 0%
------------------------------------------------------------
|
For example, if a policy subject to the Endorsement were surrendered in its
second policy year, we would refund:
. 67% of the charges that had been deducted from premiums (i.e., the sales
charge); and
. 80% of the amount of surrender charges that we otherwise would have imposed
for the surrender.
Once the Endorsement terminates at the end of the fifth policy year, however,
there will be no refund of prior deductions from premiums, and the full amount
of the surrender charges otherwise payable under the policy will be assessed
upon surrender. The Endorsement operates only if the policy is surrendered in
full. There is no waiver of surrender charges or refund of premium deductions
if the policy terminates after a grace period or if the face amount is reduced.
Nor is there a refund of prior premium deductions for partial withdrawals. The
Endorsement does not affect the amount available for borrowing or withdrawing
from your policy. Nor does it affect the calculations to determine whether your
policy will lapse or terminate. The Endorsement may affect, however, the
calculations to determine whether your policy satisfies the definition of "life
insurance contract" under Section 7702 of the Code. In some cases, this may
result in the payment of a higher alternative death benefit in the first three
policy years where it is necessary to satisfy tax law requirements.
Face amount increases (if available under your policy) will not be approved
while the endorsement is in effect. We offer products designed specifically for
this marketplace. You can contact us to find out more about any other AXA
Equitable insurance policy.
CUSTOMER LOYALTY CREDIT
We provide a customer loyalty credit for policies that have been in force for
more than six years. This is added to the account value each month. The dollar
amount of the credit is a percentage of the total amount you then have in our
investment options (not including any value we are holding as collateral for
any policy loans). The percentage credit is currently at an annual rate of
0.60% beginning in the policy's seventh year. This credit is not guaranteed.
VARIATIONS AMONG INCENTIVE LIFE(R) POLICIES
Time periods and other terms and conditions described in this prospectus may
vary due to legal requirements in your state. These variations will be
reflected in your policy.
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AXA Equitable also may vary or waive the charges (including surrender charges)
and other terms of Incentive Life(R) where special circumstances (including
certain policy exchanges) result in sales or administrative expenses or
mortality risks that are different from those normally associated with
Incentive Life(R). We will make such variations only in accordance with uniform
rules that we establish.
AXA Equitable or your financial professional can advise you about any
variations that may apply to your policy.
YOUR OPTIONS FOR RECEIVING POLICY PROCEEDS
BENEFICIARY OF DEATH BENEFIT. You designate your policy's beneficiary in your
policy application. You can change the beneficiary at any other time during the
insured person's life. If no beneficiary is living when the insured person
dies, we will pay the death benefit proceeds in equal shares to the insured
person's surviving children. If there are no surviving children, we will
instead pay the insured person's estate.
PAYMENT OPTIONS FOR DEATH BENEFIT. In your policy application, or at any other
time during the insured person's life, you may choose among several payment
options for all or part of any death benefit proceeds that subsequently become
payable. These payment options are described in the policy and may result in
varying tax consequences. A payment option selected by the policy's owner
cannot be changed by the beneficiary after the insured person dies. The terms
and conditions of each option are set out in a separate contract that we will
send to the payee when a payment option goes into effect. AXA Equitable or your
financial professional can provide you with samples of such contracts on
request.
YOU CAN CHOOSE TO HAVE THE PROCEEDS FROM THE POLICY'S LIFE INSURANCE BENEFIT
PAID UNDER ONE OF OUR PAYMENT OPTIONS, RATHER THAN AS A SINGLE SUM.
If you have not elected a payment option, we will pay any death benefit in a
single sum. If the beneficiary is a natural person (i.e., not an entity such as
a corporation) and so elects, death benefit proceeds can be paid through the
"AXA Equitable Access Account", which is a draft account that works in certain
respects like an interest-bearing checking account. In that case, we will send
the beneficiary a draftbook, and the beneficiary will have immediate access to
the proceeds by writing a draft for all or part of the amount of the death
benefit proceeds. AXA Equitable will retain the funds until a draft is
presented for payment. Interest on the AXA Equitable Access Account is earned
from the date we establish the account until the account is closed by your
beneficiary or by us if the account balance falls below the minimum balance
requirement, which is currently $1,000. The AXA Equitable Access Account is
part of AXA Equitable's general account and is subject to the claims of our
creditors. We will receive any investment earnings during the period such
amounts remain in the general account. The AXA Equitable Access Account is not
a bank account or a checking account and it is not insured by the FDIC. Funds
held by insurance companies in the general account are guaranteed by the
respective state guaranty association.
A beneficiary residing outside of the U.S., however, cannot elect the AXA
Equitable Access Account. If the beneficiary is a trust that has two or fewer
trustees, death benefit proceeds can be paid through the AXA Equitable Access
Account.
If a financial professional has assisted the beneficiary in preparing the
documents that are required for payment of the death benefit and the
beneficiary so elects, we will send the AXA Equitable Access Account checkbook
or check to the financial professional within the periods specified for death
benefit payments under "When we pay policy proceeds," later in this prospectus.
Our financial professionals will take reasonable steps to arrange for prompt
delivery to the beneficiary.
PAYMENT OPTIONS FOR SURRENDER AND WITHDRAWAL PROCEEDS. You can also choose to
receive all or part of any proceeds from a surrender or withdrawal from your
policy under one of the above referenced payment options, rather than as a
single sum.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since these policies are no
longer available to new purchasers, this cancellation provision is no longer
applicable.
If for any reason you are not satisfied with your policy, you may return it to
us for a full refund of the premiums paid. In some states, we will adjust this
amount for any investment performance (whether positive or negative).
You may cancel your policy by returning the policy along with a properly signed
and completed written request for cancellation to our Administrative Office or,
in some states, to the agent who sold it to you, by the 10th day after you
receive it (or such longer period as required under state law). Your coverage
will terminate as of the business day we receive your request at our
Administrative Office (or, in some states, as of the business day the agent
receives your request). In some states or situations, this "free look" period
is longer than 10 days. Your policy will indicate the length of your "free
look" period.
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10. More information about certain policy charges
DEDUCTING POLICY CHARGES
PURPOSES OF POLICY CHARGES. The charges under the policies are designed to
cover, in the aggregate, our direct and indirect costs of selling,
administering and providing benefits under the policies. They are also
designed, in the aggregate, to compensate us for the risks of loss we assume
pursuant to the policies. If, as we expect, the charges that we collect from
the policies exceed our total costs in connection with the policies, we will
earn a profit. Otherwise, we will incur a loss. In addition to the charges
described below, there are also charges at the Portfolio level, which are
described in the prospectuses of the Portfolios in which the funds invest. For
additional information on all policy charges, see "Risk/benefit summary:
Charges and expenses you will pay."
TRANSACTION CHARGES
On the first day of each policy month, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below (see "Periodic charges" below). In addition, charges may be deducted for
transactions such as premium payments, policy surrenders, requested decreases
in face amount, or transfers among investment options.
. PREMIUM CHARGE. We deduct an amount not to exceed 6% from each premium
payment you send us. We may increase this charge higher than 6%, however, as a
result of changes in the tax laws which increase our expenses. Currently, we
reduce this charge to 3% after an amount equal to ten "target premiums" has
been paid. The "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, among other factors. A similar
charge applies to premiums attributed to requested face amount increases that
are above your highest previous face amount. In addition, if your policy
includes the accounting benefit endorsement, a portion of the deductions from
premiums will be refunded upon surrender within the first three policy years
(see "Accounting benefit endorsement" in "More information about policy
features and benefits" earlier in this prospectus). The premium charge is
designed in part to defray sales and tax expenses we incur that are based on
premium payments.
. SURRENDER CHARGES. If you give up this policy for its net cash surrender
value or if your policy is terminated without value at the end of a grace
period before the end of the fifteenth policy year, or within the first 15
years after a face amount increase over the previous highest base policy face
amount, we will subtract a surrender charge from your policy account value. The
surrender charge in the first policy month of each policy year is shown in your
policy. The initial surrender charge will be between $2.91 and $12.99 per
$1,000 of initial base policy face amount, and between $3.53 and $12.99 per
$1,000 of base policy face amount increase. The surrender charge declines
uniformly in equal monthly amounts within each policy year beginning in the
ninth policy year until it reaches zero in the twelfth month of policy year
fifteen. The initial amount of surrender charge depends on each policy's
specific characteristics. In addition, if your policy includes the accounting
benefit endorsement, the surrender charges are reduced (see "Accounting benefit
endorsement" in "More information about policy features and benefits" earlier
in this prospectus). We will establish additional surrender charges for any
increase in the base policy face amount you request that represents an increase
over the previous highest base policy face amount. Changes in the base policy
face amount resulting from a change in death benefit option will not be
considered in computing the previous highest face amount.
The surrender charges are contingent deferred sales charges. They are
contingent because you only pay them if you surrender your policy for its net
cash surrender value (or request a reduction in its face amount, as described
below) or if your policy is terminated without value at the end of a grace
period. They are deferred because we do not deduct them from your premiums.
Because the surrender charges are contingent and deferred, the amount we
collect in a policy year is not related to actual expenses for that year.
The surrender charges assessed in connection with giving up this policy or with
reductions in policy face amount or if your policy is terminated without value
at the end of a grace period are intended, in part, to compensate us for the
fact that it takes us time to make a profit on your policy, and if you give up
or reduce the face amount of your policy or if it terminates without value in
its early years, we do not have the time to recoup our costs.
. REQUEST A DECREASE IN YOUR POLICY'S FACE AMOUNT. If there is a requested base
policy face amount reduction within the first fifteen policy years or within
fifteen years following a face amount increase, or if the paid-up death benefit
guarantee is elected for a reduced amount during a surrender charge period, a
proportionate surrender charge will be deducted from your policy account value.
Assuming you have not previously changed the base policy face amount, a
proportionate surrender charge will be determined by dividing the amount of the
reduction in base policy face amount by the initial base policy face amount of
insurance, and then multiplying that fraction by the surrender charge
immediately before the reduction. The proportionate surrender charge will not
exceed the unloaned policy account value at the time of the reduction. If a
proportionate surrender charge is made, the remaining surrender charge will be
reduced proportionately. We will not deduct a proportionate surrender charge if
the reduction resulted from a change in death benefit option or a partial
withdrawal.
If there have been prior increases in face amount, the decrease will be deemed
to cancel, first, each increase in reverse chronological order (beginning with
the most recent) and then the initial face amount. We will deduct from your
policy account value any surrender charge that is associated with any portion
of the face amount that is thus deemed to be canceled.
. TRANSFERS AMONG INVESTMENT OPTIONS. Although we do not currently charge for
transfers among investment options, we reserve the right to make a transfer
charge up to $25 for each transfer of amounts
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among your investment options. The transfer charge, if any, is deducted from
the amounts transferred from your policy's value in the variable investment
options and in our guaranteed interest option based on the proportion that the
amount transferred from each variable investment option and from our guaranteed
interest option bears to the total amount being transferred. Any such charge
would be, in part, to compensate us for our expenses in administering
transfers. The charge will never apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any transfer
pursuant to our automated transfer service or asset rebalancing service.
. ADDING A LIVING BENEFITS RIDER. If you elect the living benefits rider after
the policy is issued, we will deduct $100 from your policy account value at the
time of the transaction. This fee is designed, in part, to compensate us for
the administrative costs involved in processing the request.
. EXERCISE OF OPTION TO RECEIVE A TERMINAL ILLNESS "LIVING BENEFIT." If you
elect to receive a terminal illness "living benefit," we will deduct up to $250
from any living benefit we pay. This fee is designed, in part, to compensate us
for the administrative costs involved in processing the request.
SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service. For
certain services, we will deduct from your policy account value any withdrawal
charge that applies and the charge for the special service. Please note that we
may discontinue some or all of these services without notice.
. WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
. EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the amount you request.
. POLICY ILLUSTRATION CHARGE. We do not charge for illustrations. We reserve
the right to charge in the future.
. DUPLICATE POLICY CHARGE. We charge $35 for providing a copy of your policy.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our Administrative Office, or (iii)
by any other means we make available to you.
. POLICY HISTORY CHARGE. We charge a maximum of $50 for providing you a history
of policy transactions. If you request a policy history of less than 5 years
from the date of your request, there is no charge. If you request a policy
history of more than 5 years but less than 10 years from the date of your
request, the current charge is $25. For policy histories of 10 years or more,
the charge is $50. For all policy histories, we reserve the right to charge a
maximum of $50. The charge for this service can be paid (i) using a credit card
acceptable to AXA Equitable, (ii) by sending a check to our Administrative
Office, or (iii) by any other means we make available to you.
. CHARGE FOR RETURNED PAYMENTS. For each payment you make in connection with
your policy that is returned for insufficient funds, we will charge a maximum
of $25.
PERIODIC CHARGES
On the first day of each month of the policy, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below.
. ADMINISTRATIVE CHARGE. In the first policy year, we deduct $20 from your
policy account value at the beginning of each policy month for adults (issue
age 18 and older) or $10 each policy month in the first two policy years for
children. In all subsequent policy years (but not beyond the policy anniversary
when the insured person is attained age 100), we currently deduct $8 from your
policy account value at the beginning of each policy month. We reserve the
right to increase or decrease this latter amount in the future, although it
will never exceed $10. The administrative charge is intended, in part, to
compensate us for the costs involved in administering the policy.
. COST OF INSURANCE CHARGE. The cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured and the policy year. The monthly cost of
insurance charge is determined by multiplying the cost of insurance rate that
is then applicable to your policy by the amount we have at risk under your
policy divided by $1,000. Our amount at risk (also described in your policy as
"net amount at risk") on any date is the difference between (a) the death
benefit that would be payable if the insured person died on that date and
(b) the then total account value under the policy. A greater amount at risk, or
a higher cost of insurance rate, will result in a higher monthly charge. The
cost of insurance rates are intended, in part, to compensate us for the cost of
providing insurance to you under your policy.
Generally, the cost of insurance rate increases from one policy year to the
next. This happens automatically because of the insured person's increasing age.
On a guaranteed basis, we deduct between $0.06 and $83.34 per $1,000 of the
amount for which we are at risk under your policy from your policy account
value each month (but not beyond the policy anniversary date when the insured
person is attained age 100). As the amount for which we are at risk at any time
is the death benefit (calculated as of that time) minus your policy account
value at that time, changes in your policy account value resulting from the
performance of your investment options can affect your amount at risk, and as a
result, your cost of insurance. Our cost of insurance rates are guaranteed not
to exceed the maximum rates specified in your policy. For most insured persons
at most ages, our current (non-guaranteed) rates are lower than the maximum
rates. However, we have the ability to raise these rates up to the guaranteed
maximum at any time, subject to any necessary regulatory approvals.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) policies for insureds who are age 18 or above are based on the 1980
Commissioner's Standard Ordinary SB Smoker and NB Non-Smoker Mortality Tables.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) policies for insureds who are under age 18 are based on the 1980
Commissioner's Standard Ordinary Mortality Table B. For all other policies, for
insureds who are age 18 or above, the guaranteed maximum cost of insurance
rates are based on the 1980 Commissioner's Standard Ordinary Male and Female
Smoker and Non-Smoker Mortality Tables. For insureds who are under age 18, the
guaranteed maximum cost of insurance rates are based on the 1980 Commissioner's
Standard Ordinary Male and Female Mortality Tables.
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Our cost of insurance rates will generally be lower (except for gender-neutral
policies and in connection with certain employee benefit plans) if the insured
person is a female than if a male. They also will generally be lower for
non-tobacco users than tobacco users and lower for persons that have other
highly favorable health characteristics, as compared to those that do not. On
the other hand, insured persons who present particular health, occupational or
avocational risks may be charged higher cost of insurance rates and other
additional charges as specified in their policies. In addition, the current
rates also vary depending on the duration of the policy (i.e., the length of
time since the policy was issued).
For policies issued at ages 0 - 17, an insured's cost of insurance rate is not
based on that insured's status as a tobacco user or non-tobacco user. We offer
non-tobacco rates for ages 18 and above only. Approximately 60 days prior to
the policy anniversary date nearest the insured's 18th birthday, we will send a
notice to the policy owner giving the policy owner the opportunity to obtain
non-tobacco rates by sending the form back to us with a certification, signed
by the policy-owner and the insured, that the insured has not used tobacco
products in the last 12 months. If the properly completed form is not received
by our Administrative Office by the policy anniversary date nearest the
insured's 18th birthday, tobacco user rates will apply. The policy owner,
thereafter, may apply for non-tobacco user rates subject to our underwriting
rules in effect at that time.
You may ask us to review the tobacco habits of an insured person of attained
age 18 or over in order to change the charge from tobacco user rates to
non-tobacco user rates. The change, if approved, may result in lower future
cost of insurance rates beginning on the effective date of the change to
non-tobacco user rates.
The change will be based upon our general underwriting rules in effect at the
time of application, and may include criteria other than tobacco use status as
well as a definition of tobacco use different from that applicable at the time
this policy was issued. For information concerning possible limitations due to
tobacco use status changes, please see "2009 or later increases in benefits or
coverage, addition of riders, or certain other policy changes" under "Tax
information" earlier in this prospectus.
Similarly, after the first policy year, you may request us to review the
insured person's rating to see if they qualify for a reduction in future cost
of insurance rates. Any such change will be based upon our general underwriting
rules in effect at the time of application, and may include various criteria.
For more information concerning possible limitations on any ratings changes,
please see "2009 or later increases in benefits or coverage, addition of
riders, or certain other policy changes" under "Tax information" earlier in
this prospectus.
The change in rates, if approved, will take effect at the beginning of the
policy month that coincides with or next follows the date we approve your
request. This change may have adverse tax consequences.
Our cost of insurance rates also depend on how large the face amount is at the
time we deduct the charge. For this purpose, the face amount is the sum of the
base policy face amount and the Incentive Term rider face amount (if
applicable). Generally, the current (non-guaranteed) cost of insurance rates
are lower for face amounts of $200,000 and higher, and further reduced for face
amounts of $2,000,000 and higher. For this purpose, however, we will take into
account all face amount decreases, whatever their cause. Therefore, a decrease
in the face amount may cause your cost of insurance rates to go up.
. MORTALITY AND EXPENSE RISK CHARGE. We will collect a daily charge for
mortality and expense risk. We are committed to fulfilling our obligations
under the policy and providing service to you over the lifetime of your policy.
Despite the uncertainty of future events, we guarantee that monthly
administrative and cost of insurance deductions from your policy account value
will never be greater than the maximum amounts shown in your policy. In making
this guarantee, we assume the mortality risk that insured persons (as a group)
will live for shorter periods than we estimated. When this happens, we have to
pay a greater amount of death benefit than we expected to pay in relation to
the cost of insurance charges we received. We also assume the expense risks
that the cost of issuing and administering policies will be greater than we
expected. This charge is designed, in part, to compensate us for taking these
risks.
We deduct a daily charge at an annual rate of 0.60% of the value in your
policy's variable investment options for mortality and expense risks. We
reserve the right to increase or decrease this charge in the future, although
it will never exceed 0.90%.
. LOAN INTEREST SPREAD. We charge interest on policy loans but credit you with
interest on the amount of the policy account we hold as collateral for the
loan. The loan interest spread is the excess of the interest rate we charge
over the interest rate we credit. The maximum loan interest spread is 2%. We
may, however, increase the loan interest spread higher than 2% as a result of
changes in the tax laws which increase our expenses. We deduct this charge on
each policy anniversary date, or on loan termination, if earlier. For more
information on how this charge is deducted, see "Borrowing from your policy"
under "Accessing your money" earlier in this prospectus. As with any loan, the
interest we charge on the loans is intended, in part, to compensate us for the
time value of the money we are lending and the risk that you will not repay the
loan.
OPTIONAL RIDER CHARGES
If you elected the following riders, the following charges, which are designed
to offset the cost of their respective riders, are deducted from your policy
account value, on the first day of each month of the policy. The costs of each
of the riders below are designed, in part, to compensate us for the additional
insurance risk we take on in providing each of these riders and the
administrative costs involved in administering them:
. DISABILITY DEDUCTION WAIVER. If you chose this rider, we deduct an amount
from your policy account value each month until the insured under the base
policy reaches age 65, while the rider is in effect. This amount is between 7%
and 132% of all the other monthly charges (including charges for other riders
elected) deducted from your policy account value on a guaranteed basis. The
current monthly charges for this rider are lower than the maximum monthly
charges.
. DISABILITY PREMIUM WAIVER. If you chose this rider, we deduct an amount from
your policy account value each month while the rider is in effect. This amount
is between $0.02 and $0.71 per $1,000 of initial base policy face amount. We
will establish a similar charge for
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requested base policy face amount increases. If you also select certain of the
other optional riders available under your policy, we will deduct additional
amounts from your policy account value per $1,000 of rider benefit amount each
month while both the other rider and this rider are in effect. If you choose
the option to purchase additional insurance, we will deduct an amount between
$0.02 and $0.08. If you choose the children's term insurance, we will deduct an
amount between $0.01 and $0.03. If you choose the 10 year renewable term rider,
we will deduct an amount between $0.007 and $0.22. If you choose the cost of
living rider, we will deduct an amount between $0.003 and $0.06. These amounts
are in addition to the charges for the riders themselves.
. OPTION TO PURCHASE ADDITIONAL INSURANCE. If you chose this rider, we deduct
between $0.04 and $0.17 per $1,000 of the option to purchase additional
insurance from your policy account value each month until the insured under the
base policy reaches age 40 while the rider is in effect.
. ACCIDENTAL DEATH BENEFIT RIDER. If you chose this rider, we deduct an amount
from your policy account value each month while the rider is in effect. This
amount is between $0.08 and $0.44 per $1,000 of rider benefit amount.
. COST OF LIVING RIDER. If you chose this rider, we deduct an amount from your
policy account value each month while the rider is in effect. This amount is
between $0.004 and $0.08 per $1,000 of base policy face amount.
. 10 YEAR RENEWABLE TERM INSURANCE ON THE INSURED PERSON OR AN ADDITIONAL
INSURED PERSON. If you chose this rider, we deduct an amount from your policy
account value each month while the rider is in effect. This amount is between
$0.09 and $4.50 per $1,000 of rider benefit amount.
. INCENTIVE TERM RIDER. If you chose this rider, we deduct an amount from your
policy account value each month while the rider is in effect but not beyond the
policy anniversary when the insured person is attained age 100. This amount is
between $0.06 and $83.34 per $1,000 of rider death benefit on a guaranteed
basis. For most insured persons at most ages, the current monthly charges for
this rider are lower than the maximum monthly charges. However, we have the
ability to raise these rates up to the guaranteed maximum at any time, subject
to any necessary regulatory approvals.
. ENHANCED DEATH BENEFIT GUARANTEE. If you chose this rider, we deduct an
amount from your policy account value each month while the rider is in effect
but not beyond the policy anniversary when the insured person is attained age
100. This amount is $0.02 per $1,000 of base policy face amount.
. CHILDREN'S TERM INSURANCE. If you chose this rider, we deduct $0.50 per
$1,000 of rider benefit amount from your policy account value each month until
the insured under the base policy reaches age 65, while the rider is in effect.
The charge for this rider does not vary depending upon the specifics of your
policy. However, we will continue to charge you for the rider, even after all
of your children, stepchildren and legally adopted children have reached age 25
(when a child's coverage under the rider terminates), unless you notify us in
writing that you wish to cancel this rider.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
. Management fees.
. 12b-1 fees (not applicable to all portfolios).
. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
. Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. Certain portfolios available under the contract
in turn invest in shares of other portfolios of AXA Premier VIP Trust and EQ
Advisors Trust and/or shares of unaffiliated portfolios (collectively, the
"underlying portfolios"). The underlying portfolios each have their own fees
and expenses, including management fees, operating expenses, and investment
related expenses such as brokerage commissions. For more information about
these charges, please refer to the prospectuses for the Trusts.
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11. More information about procedures that apply to your policy
This section provides further detail about certain subjects that are addressed
in the previous pages. The following discussion generally does not repeat the
information already contained in those pages.
DATES AND PRICES AT WHICH POLICY EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your policy will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
DATE OF RECEIPT. Where this prospectus refers to the day when we receive a
payment, request, election, notice, transfer or any other transaction request
from you, we usually mean the day on which that item (or the last thing
necessary for us to process that item) arrives in complete and proper form at
our Administrative Office or via the appropriate telephone or fax number if the
item is a type we accept by those means. There are two main exceptions: if the
item arrives (1) on a day that is not a business day or (2) after the close of
a business day, then, in each case, we are deemed to have received that item on
the next business day.
BUSINESS DAY. Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). A business day
does not include a day on which we are not open due to emergency conditions
determined by the Securities and Exchange Commission. We may also close early
due to such emergency conditions. We compute unit values for our variable
investment options as of the end of each business day.
PAYMENTS YOU MAKE. The following are reflected in your policy as of the date we
receive them in complete and proper form:
. premium payments received after the policy's investment start date
(discussed below)
. loan repayments and interest payments
REQUESTS YOU MAKE. The following transactions occur as of the date we receive
your request in complete and proper form:
. withdrawals
. tax withholding elections
. face amount decreases that result from a withdrawal
. changes of allocation percentages for premium payments or monthly deductions
. surrenders
. changes of owner
. changes of beneficiary
. transfers from a variable investment option to the guaranteed interest
option
. changes in form of death benefit payment
. loans
. transfers among variable investment options
. assignments
. termination of paid up death benefit guarantee
The following transactions occur on your policy's next monthly anniversary that
coincides with or follows the date we approve your request:
. changes in face amount
. election of paid up death benefit guarantee
. changes in death benefit option
. termination of enhanced death benefit guarantee
. restoration of terminated policies
. termination of any additional benefit riders you have elected
AUTOMATIC TRANSFER SERVICE. Transfers pursuant to our automatic transfer
averaging service (dollar cost averaging service) occur as of the first day of
each policy month. If you request the automatic transfer service in your
original policy application, the first transfer will occur as of the first day
of the second policy month after your policy's initial Allocation Date. If you
request this service at any later time, we make the first such transfer as of
your policy's first monthly anniversary that coincides with or follows the date
we receive your request.
ASSET REBALANCING SERVICE. If you request the asset rebalancing service, the
first redistribution will be on the date you specify or the date we receive
your request, if later. However, no rebalancing will occur before your policy's
Allocation Date. Subsequent periodic rebalancings occur quarterly, semiannually
or annually, as you have requested.
DELAY IN CERTAIN CASES. We may delay allocating any payment you make to our
variable investment options, or any transfer, for the same reasons stated in
"Delay of variable investment option proceeds" later in this prospectus. We may
also delay such transactions for any other legally permitted purpose.
PRICES APPLICABLE TO POLICY TRANSACTIONS. If a transaction will increase or
decrease the amount you have in a variable investment option as of a certain
date, we process the transaction using the unit values for that option computed
as of that day's close of business, unless that day is not a business day. In
that case, we use unit values computed as of the next business day's close.
EFFECT OF DEATH OR SURRENDER. You may not make any surrender or partial
withdrawal request after the insured person has died. Also, all insurance
coverage ends on the date as of which we process any request for a surrender.
POLICY ISSUANCE
REGISTER DATE. When we issue a policy, we assign it a "register date," which
will be shown in the policy. We measure the months, years, and anniversaries of
your policy from your policy's register date.
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. If you submit the full minimum initial premium to your financial
professional at the time you sign the application and before the policy is
issued, and we issue the policy as it was applied for, then the register
date will be the later of (a) the date you signed part I of the policy
application or (b) the date a medical professional signed part II of the
policy application.
. If we do not receive your full minimum initial premium at our
Administrative Office before the issue date or, if we issue the policy on a
different basis than you applied for, the register date initially will
appear on your policy as the date the policy is issued; however, we will
move the register date to the date we deliver the policy provided we
received your full minimum initial premium. This will ensure that premiums
and charges will commence on the same date as your insurance coverage. If
your policy was delivered on the 29th, 30th or 31st of the month, we will
move the register date to the 1st of the following month. This could change
the current interest rate for the Guaranteed Interest Account.
We may also permit an earlier than customary register date (a) for
employer-sponsored cases, to accommodate a common register date for all
employees or (b) to provide a younger age at issue. (A younger age at issue
reduces the monthly charges that we deduct under a policy.) The charges and
deductions commence as of the register date, even when we have permitted an
early register date. We may also permit policy owners to delay a register date
(up to three months) in employer-sponsored cases.
INVESTMENT START DATE. This is the date your investment first begins to earn a
return for you. Generally, this is the register date. Before this date, your
initial premium will be held in a non-interest bearing account. If we move your
register date as described in the second bullet under "Policy issuance," above,
we will also move your investment start date and/or interest crediting date to
coincide with the register date.
COMMENCEMENT OF INSURANCE COVERAGE. You must give the full minimum initial
premium to your financial professional on or before the day the policy is
delivered to you. No insurance under your policy will take effect unless
(1) the insured person is still living at the time such payment and delivery
are completed and (2) the information in the application continues to be true
and complete, without material change, as of the time of such payment. If you
submit the full minimum initial premium with your application, we may, subject
to certain conditions, provide a limited amount of temporary insurance on the
proposed insured person. You may request and review a copy of our temporary
insurance agreement for more information about the terms and conditions of that
coverage.
NON-ISSUANCE. If, after considering your application, we decide not to issue a
policy, we will refund any premium you have paid, without interest.
AGE; AGE AT ISSUE. Unless the context in this prospectus requires otherwise, we
consider the insured person's "age" during any policy year to be his or her age
on his or her birthday nearest to the beginning of that policy year. For
example, the insured person's age for the first policy year ("age at issue") is
that person's age on whichever birthday is closer to (i.e., before or after)
the policy's register date.
WAYS TO MAKE PREMIUM AND LOAN PAYMENTS
CHECKS AND MONEY ORDERS. Premiums or loan payments generally must be paid by
check or money order drawn on a U.S. bank in U.S. dollars and made payable to
"AXA Equitable Life Insurance Company."
We prefer that you make each payment to us with a single check drawn on your
business or personal bank account. We also will accept a single money order,
bank draft or cashier's check payable directly to AXA Equitable, although we
must report such "cash equivalent" payments to the Internal Revenue Service
under certain circumstances. Cash and travelers' checks, or any payments in
foreign currency, are not acceptable. We will accept third-party checks payable
to someone other than AXA Equitable and endorsed over to AXA Equitable only
(1) as a direct payment from a qualified retirement plan or (2) if they are
made out to a trustee who owns the policy and endorses the entire check
(without any refund) as a payment to the policy.
ASSIGNING YOUR POLICY
You may assign (transfer) your rights in a policy to someone else as collateral
for a loan, to effect a change of ownership or for some other reason, if we
agree. Collateral assignments may also sometimes be used in connection with
dividing the benefits of the policy under a split-dollar arrangement, which
will also have its own tax consequences. A copy of the assignment must be
forwarded to our Administrative Office. We are not responsible for any payment
we make or any action we take before we receive notice of the assignment or for
the validity of the assignment. An absolute assignment is a change of ownership.
Certain transfers for value may subject you to income tax and penalties and
cause the death benefit to lose its income-tax free treatment. Further, a gift
of a policy that has a loan outstanding may be treated as part gift and part
transfer for value, which could result in both gift tax and income tax
consequences. The IRS issued regulations in both 2002 and 2003 concerning
split-dollar arrangements, including policies subject to collateral
assignments. The regulations provide both new and interim guidance as to the
taxation of such arrangements. These regulations address taxation issues in
connection with arrangements which are compensatory in nature, involve a
shareholder and corporation, or a donor and donee. See also discussion under
"Split-dollar and other employee benefit programs" and "Estate, gift, and
generation-skipping taxes" in the "Tax information" section of this prospectus.
You should consult your tax advisor prior to making a transfer or assignment.
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
NOTE: Notwithstanding the information further below, based upon our current
understanding of federal tax rules at the time this prospectus was prepared, we
are not permitting changes of a policy's insured person. For further
information, please see "2009 or later increases in benefits or coverage,
addition of riders, or certain other policy changes" under "Tax information"
earlier in this prospectus. The following information, therefore, does not
apply, absent IRS guidance that would permit such changes.
After the policy's second year, we will permit you to request that a new
insured person replace the existing one subject to our rules then in effect.
This requires that you provide us with adequate evidence
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that the proposed new insured person meets our requirements for insurance.
Other requirements are outlined in your policy.
Upon making this change, the monthly insurance charges we deduct will be based
on the new insured person's insurance risk characteristics and may result in a
loss of any death benefit guarantees. The change of insured person will not,
however, affect the surrender charge computation for the amount of coverage
that is then in force.
Substituting the insured person is a taxable event and may, depending upon
individual circumstances, have other tax consequences as well. For example, the
change could cause the policy to be a "modified endowment contract" or to fail
the Internal Revenue Code's definition of "life insurance," or in some cases
require that we also distribute certain amounts to you from the policy. See
"Tax information" earlier in this prospectus. You should consult your tax
advisor prior to substituting the insured person. As a condition to
substituting the insured person we may require you to sign a form acknowledging
the potential tax consequences. In no event, however, will we permit a change
that we believe causes your policy to fail the definition of life insurance.
See "2009 or later increases in benefits or coverage, addition of riders, or
certain other policy changes" in "Tax information" earlier in this prospectus.
REQUIREMENTS FOR SURRENDER REQUESTS
Your surrender request must include the policy number, your name, your taxpayer
identification number, the name of the insured person, and the address where
proceeds should be mailed. The request must be signed by you, as the owner, and
by any joint owner, collateral assignee or irrevocable beneficiary. We may also
require you to complete specific tax forms, or provide a representation that
your policy is not being exchanged for another life or annuity contract.
GENDER-NEUTRAL POLICIES
Congress and various states have from time to time considered legislation that
would require insurance rates to be the same for males and females. In
addition, employers and employee organizations should consider, in consultation
with counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of Incentive Life(R) in connection with an employment-related
insurance or benefit plan. In a 1983 decision, the United States Supreme Court
held that, under Title VII, optional annuity benefits under a deferred
compensation plan could not vary on the basis of sex.
There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life(R) policies sold in Montana. We will also make such
gender-neutral policies available on request in connection with certain
employee benefit plans. Cost of insurance rates applicable to a gender-neutral
policy will not be greater than the comparable male rates under a gender
specific Incentive Life(R) policy.
FUTURE POLICY EXCHANGES
We may at some future time, under certain circumstances and subject to
applicable law, allow the current owner of this policy to exchange it for a
universal life policy we are then offering. The exchange may or may not be
advantageous to you, based on all of the circumstances, including a comparison
of contractual terms and conditions and charges and deductions. We will provide
additional information upon request at such time as exchanges may be permitted.
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12. More information about other matters
ABOUT OUR GENERAL ACCOUNT
This policy is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a policy's account value or any guaranteed benefits with which the policy
was issued. AXA Equitable is solely responsible to the policy owner for the
policy's account value and such guaranteed benefits. The general obligations
and any guaranteed benefits under the policy are supported by AXA Equitable's
general account and are subject to AXA Equitable's claims paying ability. An
owner should look to the financial strength of AXA Equitable for its claims
paying ability. Assets in the general account are not segregated for the
exclusive benefit of any particular policy or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the New York
State Department of Financial Services and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business.
Interests under the contracts in the general account have not been registered
and are not required to be registered under the Securities Act of 1933 because
of exemptions and exclusionary provisions that apply. The general account is
not required to register as an investment company under the Investment Company
Act of 1940 and it is not registered as an investment company under the
Investment Company Act of 1940. The policy is a "covered security" under the
federal securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities law relating to the accuracy and completeness of statements
made in prospectuses.
TRANSFERS OF YOUR ACCOUNT VALUE
TRANSFERS NOT IMPLEMENTED. If a request cannot be fully administered, only the
part that is in good order will be processed. Any part of the request that
cannot be processed will be denied and an explanation will be provided to you.
This could occur, for example, where the request does not comply with our
transfer limitations, or where you request transfer of an amount greater than
that currently allocated to an investment option.
Similarly, the automatic transfer service will terminate immediately if:
(1) your amount in the EQ/Money Market option is insufficient to cover the
automatic transfer amount; (2) your policy is in a grace period; or (3) we
receive notice of the insured person's death. Similarly, the asset rebalancing
service will terminate if either (2) or (3) occurs.
DISRUPTIVE TRANSFER ACTIVITY. You should note that the policy is not designed
for professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy. The policy is not designed to
accommodate programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy owners.
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We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us policy
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a policy is identified in connection with potentially disruptive transfer
activity for the first time, a letter is sent to the policy owner explaining
that AXA Equitable has a policy against disruptive transfer activity and that
if such activity continues, certain transfer privileges may be eliminated. If
and when the policy owner is identified a second time as engaged in potentially
disruptive transfer activity under the policy, we currently prohibit the use of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected policy. We or a trust may change the
definition of potentially disruptive transfer activity, the monitoring
procedures and thresholds, any notification procedures, and the procedures to
restrict this activity. Any new or revised policies and procedures will apply
to all policy owners uniformly. We do not permit exceptions to our policies
restricting disruptive transfer activity.
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our policy owners, we will work with the
unaffiliated trust to review policy owner trading activity. Each trust reserves
the right to reject a transfer that it believes, in its sole discretion, is
disruptive (or potentially disruptive) to the management of one of its
portfolios. Please see the prospectuses for the trusts for more information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by policy owners. As of the date of this
prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the policy owner.
Policy owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, policy owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
policy owners may be treated differently than others, resulting in the risk
that some policy owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
TELEPHONE AND INTERNET REQUESTS
If you are a properly authorized person, you may make transfers between
investment options over the Internet as described earlier in this prospectus in
"How to make transfers" under "Transferring your money among our investment
options."
Also, you may make the following additional types of requests by calling the
number under "By Phone:" in "How to reach us" from a touch-tone phone, if the
policy is individually owned and you are the owner or through axa.com or
us.axa.com for those outside the U.S. if you are the individual owner:
. changes of premium allocation percentages
. changes of address
. request forms and statements
. to request a policy loan (loan requests cannot be made online by corporate
policy owners)
. enroll for electronic delivery and view statements/documents online
. to pay your premium or make a loan repayment
For security purposes, all telephone requests are automatically tape-recorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine.
If you wish to enroll through axa.com or us.axa.com for those outside the U.S.,
you must first agree to the terms and conditions set forth in our axa.com or
us.axa.com (for those outside the U.S.) Online Services Agreement, which you
can find at our website. We will send you a confirmation letter by first class
mail. Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
transactions. We will assume that all instructions received through axa.com or
us.axa.com for those outside the U.S., are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to axa.com
or us.axa.com for those outside the U.S., if we have reason to believe the
instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet
transactions if we have reason to believe that the request compromises the
general security and/or integrity of our automated systems (see discussion of
"Disruptive transfer activity" above).
Any telephone, Internet or fax transaction request that is not completed by the
close of a business day (which is usually 4:00 p.m. Eastern Time) will be
processed as of the next business day. During times of extreme market activity,
or for other reasons, you may be unable to contact us to make a telephone or
Internet request. If this occurs, you should submit a written transaction
request to our Administrative Office. We reserve the right to discontinue
telephone or Internet transactions, or modify the procedures and conditions for
such transactions, without notifying you, at any time.
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CYBERSECURITY
We rely heavily on interconnected computer systems and digital data to conduct
our variable life insurance product business. Because our variable life
insurance product business is highly dependent upon the effective operation of
our computer systems and those of our business partners, our business is
vulnerable to disruptions from utility outages, and susceptible to operational
and information security risks resulting from information systems failure
(e.g., hardware and software malfunctions), and cyber-attacks. These risks
include, among other things, the theft, misuse, corruption and destruction of
data maintained online or digitally, interference with or denial of service,
attacks on websites and other operational disruption and unauthorized use or
abuse of confidential customer information. Such systems failures and
cyber-attacks affecting us, any third party administrator, the underlying
funds, intermediaries and other affiliated or third-party service providers may
adversely affect us and your policy account value. For instance, systems
failures and cyber-attacks may interfere with our processing of policy
transactions, including the processing of orders from our website or with the
underlying funds, impact our ability to calculate your policy account value,
cause the release and possible destruction of confidential customer or business
information, impede order processing, subject us and/or our service providers
and intermediaries to regulatory fines and financial losses and/or cause
reputational damage. Cybersecurity risks may also impact the issuers of
securities in which the underlying funds invest, which may cause the funds
underlying your policy to lose policy account value. While there can be no
assurance that we or the underlying funds or our service providers will avoid
losses affecting your policy due to cyber-attacks or information security
breaches in the future, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
SUICIDE AND CERTAIN MISSTATEMENTS
If an insured person commits suicide within certain time periods, the amount of
death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of an insured person, we will adjust
the amount of any death benefit (and certain rider benefits), as described in
the policy (or rider).
WHEN WE PAY POLICY PROCEEDS
GENERAL. We will generally pay any death benefit, surrender, withdrawal, or
loan within seven days after we receive the request and any other required
items.
CLEARANCE OF CHECKS. We reserve the right to defer payment of that portion of
your account value that is attributable to a premium payment or loan repayment
made by check for a reasonable period of time (not to exceed 15 days) to allow
the check to clear the banking system.
DELAY OF GUARANTEED INTEREST OPTION PROCEEDS. We also have the right to defer
payment or transfers of amounts out of our guaranteed interest option for up to
six months. If we delay more than 30 days in paying you such amounts, we will
pay interest of at least 3% per year from the date we receive your request.
DELAY OF VARIABLE INVESTMENT OPTION PROCEEDS. We reserve the right to defer
payment of any death benefit, transfer, loan or other distribution that is
derived from a variable investment option if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings) or trading on that
exchange is restricted; (b) the SEC has declared that an emergency exists, as a
result of which disposal of securities is not reasonably practicable or it is
not reasonably practicable to fairly determine the account value; or (c) the
law permits the delay for the protection of owners. If we need to defer
calculation of values for any of the foregoing reasons, all delayed
transactions will be processed at the next available unit values.
DELAY TO CHALLENGE COVERAGE. We may challenge the validity of your insurance
policy or any rider based on any material misstatements in an application you
have made to us. We cannot make such challenges, however, beyond certain time
limits set forth in the policy or rider. If the insured person dies within one
of these limits, we may delay payment of any proceeds until we decide whether
to challenge the policy.
CHANGES WE CAN MAKE
In addition to any of the other changes described in this prospectus, we have
the right to modify how we or Separate Account FP operate. For example, we have
the right to:
. combine two or more variable investment options or withdraw assets relating
to Incentive Life(R) from one investment option and put them into another;
. end the registration of, or re-register, Separate Account FP under the
Investment Company Act of 1940;
. operate Separate Account FP under the direction of a "committee" or
discharge such a committee at any time;
. restrict or eliminate any voting rights or privileges of policy owners (or
other persons) that affect Separate Account FP;
. operate Separate Account FP, or one or more of the variable investment
options, in any other form the law allows. This includes any form that
allows us to make direct investments, in which case we may charge Separate
Account FP an advisory fee. We may make any legal investments we wish for
Separate Account FP. In addition, we may disapprove any change in
investment advisers or in investment policy unless a law or regulation
provides differently.
If we take any action that results in a material change in the underlying
investments of a variable investment option, we will notify you to the extent
required by law. We may, for example, cause the variable investment option to
invest in a mutual fund other than, or in addition to, the Trusts. If you then
wish to transfer the amount you have in that option to another investment
option, you may do so.
We may make any changes in the policy or its riders, require additional premium
payments, or make distributions from the policy to the extent we deem necessary
to ensure that your policy qualifies or continues to qualify as life insurance
for tax purposes. Any such change will apply uniformly to all policies that are
affected. We will give you written notice of such changes. Subject to all
applicable legal requirements, we also may make other changes in the policies
that do not reduce any net cash surrender value, death benefit, account value,
or other accrued rights or benefits.
Whether to make any of the above discussed changes is generally within our
discretion, although some such changes might require us to obtain regulatory or
policy owner approval. Whether regulatory or policy owner approval is required
would depend on the nature of the change and, in many cases, the manner in
which the change is implemented. You should not assume, therefore, that you
necessarily will have an opportunity to approve or disapprove any such changes.
We will, of course, comply with all applicable legal requirements, including
notice to or approval by policy owners where required in particular cases.
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It is not possible to foresee all the circumstances under which we may find it
necessary or appropriate to exercise our right to make changes. Such
circumstances could, however, include changes in law, or interpretations
thereof; changes in financial or investment market conditions; changes in
accepted methods of conducting operations in the relevant market; or a desire
to achieve material operating economies or efficiencies.
REPORTS WE WILL SEND YOU
Shortly after the end of each year of your policy, we will send you a report
that includes information about your policy's current death benefit, account
value, cash surrender value (i.e., account value minus any current surrender
charge), policy loans, policy transactions and amounts of charges deducted. We
will send you individual notices to confirm your premium payments, loan
repayments, transfers and certain other policy transactions. Please promptly
review all statements and confirmations and notify us immediately at
1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.) if
there are any errors.
DISTRIBUTION OF THE POLICIES
The policies are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account FP. The
offering of the policies is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Equitable Holdings, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors
are registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The policies are sold by financial professionals of AXA Advisors and its
affiliates. The policies are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with AXA
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on policies sold.
AXA Equitable may also make additional payments to the Distributors, and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. All payments will be in compliance with all applicable FINRA
rules and other laws and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its policies, none of
the compensation paid to the Distributors or the Selling broker-dealers
discussed in this section of the prospectus are imposed as separate fees or
charges under your policy. AXA Equitable, however, intends to recoup amounts it
pays for distribution and other services through the fees and charges of the
policy and payments it receives for providing administrative, distribution and
other services to the Portfolios. For information about the fees and charges
under the policy, see "Risk/benefit summary: Charges and expenses you will pay"
and "More information about certain policy charges" earlier in this prospectus.
As used below, the "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount and Distributor, among other factors.
AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors
based on premium payments made on the policies sold through AXA Advisors
("premium-based compensation"). The premium-based compensation will generally
not exceed 99% of premiums you pay up to one target premium in your policy's
first year; plus 8.5% of all other premiums you pay in your policy's first
year; plus 11% of all other premiums you pay in policy years two and later. AXA
Advisors, in turn, may pay a portion of the premium-based compensation received
from AXA Equitable to the AXA Advisors financial professional and/or the
Selling broker-dealer making the sale. In some instances, a financial
professional or a Selling broker-dealer may elect to receive premium-based
compensation on a policy in combination with ongoing annual compensation based
on a percentage of the unloaned account value of the policy sold ("asset-based
compensation"). Total compensation paid to a financial professional or a
Selling broker-dealer electing to receive both premium-based and asset-based
compensation could, over time, exceed the total compensation that would
otherwise be paid on the basis of premiums alone. The compensation paid by AXA
Advisors varies among financial professionals and among Selling broker-dealers.
AXA Advisors also pays a portion of the compensation it receives to its
managerial personnel. When a policy is sold by a Selling broker-dealer, the
Selling broker-dealer, not AXA Advisors, determines the amount and type of the
compensation paid to the Selling broker-dealer's financial professional for the
sale of the policy. Therefore, you should contact your financial professional
for information about the compensation he or she receives and any related
incentives, as described below.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their policy.
AXA Advisors also pays its financial professionals and managerial personnel
other types of compensation including service fees, expense allowance payments
and health and retirement benefits. AXA Advisors also pays its financial
professionals, managerial personnel and Selling broker-dealers sales bonuses
(based on selling certain products during specified periods) and persistency
bonuses. AXA Advisors may offer sales incentive programs to financial
professionals and Selling broker-dealers who meet specified production levels
for the sales of both AXA Equitable policies and policies offered by other
companies. These incentives provide non-cash compensation such as stock options
awards and/or stock appreciation rights, expense-paid trips, expense-paid
education seminars and merchandise.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of premium-based compensation and/or asset-based
compensation for the sale of an AXA Equitable policy than it pays for the sale
of a policy or other financial product issued by a company other than AXA
Equitable. AXA Advisors may pay higher compensation on certain products in a
class than others based on a group or sponsored arrangement, or between older
and newer versions or series of the same policy. This practice is known as
52
MORE INFORMATION ABOUT OTHER MATTERS
providing "differential compensation." Differential compensation may involve
other forms of compensation to AXA Advisors personnel. Certain components of
the compensation paid to managerial personnel are based on whether the sales
involve AXA Equitable policies. Managers earn higher compensation (and credits
toward awards and bonuses) if the financial professionals they manage sell a
higher percentage of AXA Equitable policies than products issued by other
companies. Other forms of compensation provided to its financial professionals
and/or managerial personnel include health and retirement benefits, expense
reimbursements, marketing allowances and premium-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
policies and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable policy over a policy or
other financial product issued by a company not affiliated with AXA Equitable.
However, under applicable rules of FINRA and other federal and state regulatory
authorities, AXA Advisors financial professionals may only recommend to you
products that they reasonably believe are suitable for you and, for certain
accounts depending on applicable rules, that are in your best interest, based
on the facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals of AXA Advisors may nonetheless face conflicts of interest
because of the differences in compensation from one product category to
another, and because of differences in compensation among products in the same
category. For more information, contact your financial professional.
AXA DISTRIBUTORS COMPENSATION. AXA Equitable pays premium-based compensation to
AXA Distributors. Premium-based compensation is paid based on AXA Equitable
policies sold through AXA Distributor's Selling broker-dealers. Premium-based
compensation will generally not exceed 94% of the premiums you pay up to one
target premium in your policy's first year; plus 3% of all other premiums you
pay in your policy's first year; plus 3% of all other premiums you pay in
policy years two and later. AXA Equitable may substitute a form of asset-based
compensation after the first policy year. AXA Distributors, in turn, pays a
portion of the premium-based compensation and/or asset-based compensation
(together, "compensation") it receives to the Selling broker-dealer making the
sale. The compensation paid by AXA Distributors varies among Selling
broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the amount and type
of compensation paid to the Selling broker-dealer's financial professional for
the sale of the policy. Therefore, you should contact your financial
professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
These payments above also include compensation to cover operating expenses and
marketing services under the terms of AXA Equitable's distribution agreements
with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. AXA
Distributors may pay, out of its assets, certain Selling broker-dealers and
other financial intermediaries additional compensation in recognition of
services provided or expenses incurred. AXA Distributors may also pay certain
Selling broker-dealers or other financial intermediaries additional
compensation for enhanced marketing opportunities and other services (commonly
referred to as "marketing allowances"). Services for which such payments are
made may include, but are not limited to, the preferred placement of AXA
Equitable products on a company and/or product list; sales personnel training;
product training; business reporting; technological support; due diligence and
related costs; advertising, marketing and related services; conference; and/or
other support services, including some that may benefit the policy owner.
Payments may be based on ongoing sales, on the aggregate account value
attributable to policies sold through a Selling broker-dealer or such payments
may be a fixed amount. For certain selling broker-dealers, AXA Distributors
increases the marketing allowance as certain sales thresholds are met. AXA
Distributors may also make fixed payments to Selling broker-dealers, for
example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable policies exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable policies over policies and other products
issued by other companies. Not all Selling broker-dealers receive additional
payments, and the payments vary among Selling broker-dealers. The list below
includes the names of Selling broker-dealers that we are aware (as of
December 31, 2018) received additional payments. These additional payments
ranged from $536.67 to $6,370,912.47. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling broker-dealers to promote the sale of AXA
Equitable policies over policies and other products issued by other companies.
The list below includes any such Selling broker-dealer. For more information,
ask your financial professional.
1st Global Capital Corp.
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Securities, Inc.
Cambridge Investment Research
Capital Investment Group
Centaurus Financial, Inc.
CETERA Financial Group
Citigroup Global Markets, Inc.
Citizens Investment Services
Commonwealth Financial Network
Community America Financial Solution
CUNA Brokerage Services
CUSO Financial Services, L.P.
DPL Financial Partners
Equity Services Inc.
Farmer's Financial Solution
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
|
#633432
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 1, 2019 TO PROSPECTUS DATED MAY 1, 2019 FOR INCENTIVE
LIFE(R) '99 AND TO PROSPECTUS SUPPLEMENTS DATED MAY 1, 2019 FOR INCENTIVE
LIFE(R) 2000 AND INCENTIVE LIFE(R) PLUS
This Supplement concerns an additional investment option under our Incentive
Life(R) '99, Incentive Life(R) 2000 and Incentive Life(R) Plus policies ("your
policy"). The Market Stabilizer Option(R) ("MSO") is available for investment
under your policy, if you have received this Supplement. Any amount that you
decide to invest in the MSO would be invested in one of the "Segments" of the
MSO, each of which has a limited duration (a "Segment Term").
The purpose of this Supplement is solely to add to your base policy prospectus
("Your Policy Prospectus") a very limited amount of information about the MSO.
Much more complete information about the MSO is contained in a separate Market
Stabilizer Option(R) prospectus ("MSO Prospectus") dated May 1, 2019. All of
the information in Your Policy Prospectus also continues to remain applicable,
except as otherwise provided in this Supplement (or any other supplement to
Your Policy Prospectus) or in the MSO Prospectus.
Accordingly, you should read this Supplement in conjunction with Your Policy
Prospectus (and any other supplements thereto) and the MSO Prospectus. We will
send you another copy of any prospectus or supplement without charge upon
request. Please contact the customer service group at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.).
NO TRANSFER CHARGES IN CONNECTION WITH MSO
Although we generally reserve the right to either (i) impose up to a $25 charge
for each transfer or (ii) to permit 12 free transfers per policy year and
thereafter charge $25 for each transfer, we will never exercise these rights
with respect to any transfers into or out of the MSO. The following transfers
are not subject to the $25 guaranteed maximum charge nor counted toward the
free transfer limit:
. Transfers of the Segment Maturity Value to the variable investment options,
guaranteed interest option ("GIO"; also referred to as the "Guaranteed
Interest Account") or to the MSO Holding Account;
. Transfers from the MSO Holding Account into a new Segment or any variable
investment option;
. Transfers from the variable investment options (also referred to as
"investment portfolios") to the Unloaned GIO to meet the Charge Reserve
Amount requirement.
CHARGES FOR THE MSO
If you allocate any of your policy account value to the MSO, several types of
charges or deductions would or could result. To reflect these, the following
items are added to the chart entitled "Periodic charges other than underlying
trust portfolio operating expenses" in Your Policy Prospectus:
-----------------------------------------------------------------------------------------------------------
OPTIONAL RIDER CHARGES WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
-----------------------------------------------------------------------------------------------------------
MARKET STABILIZER OPTION(R)
(MSO)/(1)/
-----------------------------------------------------------------------------------------------------------
MSO VARIABLE INDEX BENEFIT Upon allocation to MSO Segment 0.75% of policy account value
CHARGE allocated
-----------------------------------------------------------------------------------------------------------
MSO VARIABLE INDEX SEGMENT Monthly (during any MSO Segment Annual % of your Segment Account
ACCOUNT CHARGE Term) Value 1.65%/(2)/
-----------------------------------------------------------------------------------------------------------
MSO LOAN SPREAD On each policy anniversary (or on loan 2% for New York policies
termination, if earlier) 5% for all other policies/(3)/
-----------------------------------------------------------------------------------------------------------
MSO EARLY DISTRIBUTION On surrender or other distribution 75% of Segment Account Value/(4)/
ADJUSTMENT (including loan) from an MSO Segment
before the Segment Term's end
-----------------------------------------------------------------------------------------------------------
|
(1)Please refer to the MSO Prospectus for information about the MSO and related
charges and deductions, as well as the meaning of special terms that are
relevant to the MSO (such as "Segment," "Segment Term," "Segment Start
Date," "Segment Account Value," "Segment Distribution Value" and "Early
Distribution Adjustment.")
(2)Currently we deduct this charge at a 0.65% annual rate, rather than at the
maximum rate shown.
(3)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
loan interest spread is the excess of the interest rate we charge over the
interest rate we credit.
(4)The actual amount of Early Distribution Adjustment is determined by a
formula that depends on, among other things, how a specified widely
published stock market index has performed since the Segment Start Date. The
maximum amount of the adjustment would occur if there is a total
distribution at a time when that index had declined to zero. Please refer to
the MSO Prospectus for more information about the index and Early
Distribution Adjustment.
EVM 07 (5/19) Catalog No. 150048 (5/19)
IF/IL99, IL 2000 and IL Plus #633982
Your policy's mortality and expense risk charge also applies to the Segment
Account Value or any amounts held in the MSO Holding Account. If your policy's
mortality and expense risk charge is deducted on a monthly basis, then the same
monthly rate will also be applicable to the Segment Account Value or any
amounts held in the MSO Holding Account. If your policy's mortality and expense
risk charge is deducted on a daily basis, then the same daily rate will be
applicable to any amounts held in the MSO Holding Account and an equivalent
monthly rate will be applicable to the Segment Account Value.
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
If you allocate any policy account value to the MSO, our procedures for
allocating the policy's monthly deductions among the investment options you are
using is significantly different than in the absence of the MSO. Accordingly,
the following text is added at the end of the section entitled "Managing your
allocations" in the Incentive Life(R) 2000 and Incentive Life(R) Plus
Prospectus Supplements this section is entitled "How we allocate charges among
your investment options" (in the Incentive Life(R) '99 Prospectus):
Substantially different procedures apply, however, if you allocate any of
your policy account value to a Segment under the MSO. In that case, for
example, you will be required to maintain a certain amount of policy account
value (the Charge Reserve Amount) in the policy's Unloaned GIO. (You will
not be subject to any Charge Reserve Amount requirement, however, at any
time when none of your policy account value is invested in any Segment.) The
Charge Reserve Amount at the beginning of any Segment Term is an estimated
amount projected to be sufficient to cover monthly deductions under your
policy (including, but not limited to, charges for the MSO and any optional
riders) for the Segment Term.
While any of your policy account value is invested in any Segment, we will
take all of your policy's monthly deductions (including, but not limited to,
the monthly deductions under the MSO and optional riders) solely from the
Unloaned GIO, rather than from the investment options from which those
charges otherwise might be deducted. If you have insufficient policy account
value in the Unloaned GIO to pay a monthly deduction during any Segment
Term, we will first take the balance of the deduction proportionately from
values in the variable investment options, including any value in the MSO
Holding Account but excluding any Segment Account Values. But, if
insufficient policy account value remains in any such other investment
options to cover the full balance of the monthly deduction, we will take the
remainder of the monthly deduction proportionately, based on the current
Segment Distribution Values, from any Segments in which you have account
value invested. We will apply these procedures for allocating deductions for
policy charges automatically at any time you have any amounts invested in a
Segment, and no contrary instructions from you would apply during the
Segment Term.
If we have to make any distribution from a Segment, including (among other
things) to pay any surrender or loan proceeds or any charge deduction from a
Segment, there will generally be negative consequences for you. Among other
things, an Early Distribution Adjustment would apply, which would usually
reduce your policy values, in many cases substantially. In some cases, such
an Early Distribution Adjustment may apply without any action on your part.
This could happen, for example, if the Charge Reserve Amount and funds you
have invested in investment options other than the MSO are insufficient to
pay a monthly deduction (i) due to poor investment performance of those
options or (ii) due to any permitted increases in charges that we have made
above their current rates.
Please refer to the MSO Prospectus for detailed information about the above
procedures.
GROWTH CAP RATE AVAILABLE DURING INITIAL YEAR
The section entitled "Growth Cap Rate Available During Initial Year" under
"Description of the Market Stabilizer Option" in the MSO Prospectus is deleted
in its entirety. All references to a 15% initial year Growth Cap Rate in the
MSO Prospectus do not apply if you elect the MSO. The minimum Growth Cap Rate
for all contract years is 6%.
IMPACT OF MSO ELECTION ON OTHER POLICY RIDERS AND SERVICES
If you elect to allocate any policy account value to the MSO, other riders and
services under your policy may be impacted.
PAID UP DEATH BENEFIT GUARANTEE ENDORSEMENT
If a paid up death benefit guarantee (which may be referred to as a "paid up no
lapse guarantee") is included with your policy, and if you elect the paid up
death benefit guarantee while any Segment is in effect, the Segment
Distribution Value will be used in place of the Segment Account Value in the
calculation of your policy account value for purposes of determining the paid
up death benefit guarantee face amount. All Segments will be terminated on the
effective date of the paid up death benefit guarantee with corresponding Early
Distribution Adjustments, and the Segment Distribution Values will be
reallocated to the variable investment options available with your policy and
to the Unloaned GIO in accordance with your prior directions.
ACCELERATED DEATH BENEFIT RIDER
If an accelerated death benefit rider (which may be referred to as a "total and
permanent disability accelerated death benefit rider" or a "limited life
expectancy accelerated death benefit rider") is included with your policy, the
portion of the cash surrender value that is on lien and is allocated to your
values in the variable investment options under your policy and investment in
the MSO will be transferred to and maintained as part of the
2
Unloaned GIO. You may tell us how much of the accelerated payment is to be
transferred from your value in each variable investment option and your value
in the MSO. Units will be redeemed from each variable investment option
sufficient to cover the amount of the accelerated payment that is allocated to
it and transferred to the Unloaned GIO. Any portion of the payment allocated to
the MSO based on your instructions will be deducted from any value in the MSO
Holding Account and the individual Segments on a pro-rata basis, based on any
value in the MSO Holding Account and the current Segment Distribution Value of
each Segment, and transferred to the Unloaned GIO. Any portion of the payment
allocated to an individual Segment will cause a corresponding Early
Distribution Adjustment of the Segment Account Value. If you do not tell us how
to allocate the payment, or if we cannot allocate it based on your directions,
we will allocate it based on our rules then in effect. Allocation rules will be
provided upon request. Such transfers will occur as of the date we approve an
accelerated death benefit payment; there will be no charge for such transfers.
ENHANCED DEATH BENEFIT GUARANTEE RIDER
If an enhanced death benefit guarantee rider is included with your policy, and
if you allocate your net premiums or transfer amounts of your policy to the
MSO, the enhanced no lapse guarantee rider must first be terminated. Once
terminated, any such enhanced death benefit guarantee rider cannot be restored.
FACE AMOUNT INCREASE ENDORSEMENT, TERM INSURANCE RIDERS, OR COST OF LIVING
RIDERS
If your policy has any of these endorsements or riders that schedule or permit
an increase in the face amount of your policy or the face amount of a term
insurance rider, or any combination of the two, any such increase during a
Segment Term will be subject to the "face amount increases" provision of the
MSO rider for purposes of determining the sufficiency of your values in the
investment options under your policy including the MSO Holding Account, and the
Unloaned GIO, to cover the recalculated Charge Reserve Amount on the effective
date of the increase. The same provision will govern the necessity for any
transfers to supplement the amount in the Unloaned GIO.
ASSET REBALANCING SERVICE
If you are invested in MSO, you may also elect the Asset Rebalancing Service.
However, any amounts allocated to the MSO will not be included in the rebalance
transactions. The investment options available to your Asset Rebalancing
Service do not include the MSO Holding Account or Segments.
AXA EQUITABLE LIFE INSURANCE COMPANY
1290 AVENUE OF THE AMERICAS
NEW YORK, NY 10104
Copyright 2019 AXA Equitable Life Insurance Company. All rights reserved.
Incentive Life(R) is issued by
and is a registered trademark of AXA Equitable Life Insurance Company.
3
Incentive Life(R) '02
An individual flexible premium variable life insurance policy issued by AXA
Equitable Life Insurance Company with variable investment options offered under
AXA Equitable's Separate Account FP.
PROSPECTUS DATED MAY 1, 2019
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING, OR TAKING ANY
OTHER ACTION UNDER A POLICY. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES
AND SUPPLEMENTS. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST, WHICH
CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
This prospectus describes the Incentive Life(R) '02 policy, but is not itself a
policy. This prospectus is a disclosure document and describes all of the
policy's material features, benefits, rights and obligations, as well as other
information. The description of the policy's material provisions in this
prospectus is current as of the date of this prospectus. If certain material
provisions under the policy are changed after the date of this prospectus in
accordance with the policy, those changes will be described in a supplement to
this prospectus. You should carefully read this prospectus in conjunction with
any applicable supplements.
This policy is no longer being sold. This prospectus is for current policy
owners only. You should note that your policy features and charges, and your
investment options, may vary depending on the state and/or the date on which
you purchased your policy. For more information about the particular features,
charges and options available to you, please contact your financial
professional and/or refer to your policy.
WHAT IS INCENTIVE LIFE(R) '02?
Incentive Life(R) '02 provides life insurance coverage, plus the opportunity
for you to earn a return in our guaranteed interest option and/or one or more
of the following variable investment options:
VARIABLE INVESTMENT OPTIONS
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT GAMCO Mergers & Acquisitions
. 1290 VT GAMCO Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. American Funds Insurance Series(R) Global Small Capitalization Fund
. American Funds Insurance Series(R) New World Fund(R)
. Charter/SM/ Multi-Sector Bond
. Charter/SM/ Small Cap Growth
. Charter/SM/ Small Cap Value
. EQ/400 Managed Volatility/(2)/
. EQ/500 Managed Volatility/(2)/
. EQ/2000 Managed Volatility/(2)/
. EQ/AB Small Cap Growth/(2)/
. EQ/Aggressive Allocation/(1)(2)/
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/ClearBridge Large Cap Growth/(2)/
. EQ/Common Stock Index
. EQ/Conservative Allocation/(1)(2)/
. EQ/Conservative-Plus Allocation/(1)(2)/
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM(R) Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Global Equity Managed Volatility/(2)/
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Core Managed Volatility/(2)/
. EQ/International Equity Index
. EQ/International Managed Volatility/(2)/
. EQ/International Value Managed Volatility/(2)/
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science and Technology
. EQ/Janus Enterprise/(2)/
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Core Managed Volatility/(2)/
. EQ/Large Cap Growth Index
. EQ/Large Cap Growth Managed Volatility/(2)/
. EQ/Large Cap Value Index
. EQ/Large Cap Value Managed Volatility/(2)/
. EQ/Lazard Emerging Markets Equity
. EQ/Loomis Sayles Growth/(2)/
. EQ/MFS International Growth
. EQ/MFS(R) International Value
. EQ/Mid Cap Index
. EQ/Mid Cap Value Managed Volatility/(2)/
. EQ/Moderate Allocation/(1)(2)/
. EQ/Moderate-Plus Allocation/(1)(2)/
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/UBS Growth and Income
. Fidelity(R) VIP Growth & Income
. Fidelity(R) VIP Mid Cap
. Franklin Mutual Shares VIP
. Franklin Small Cap Value VIP
. Invesco V.I. Mid Cap Core Equity
. Invesco V.I. Small Cap Equity
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
. MFS(R) Investors Trust
. MFS(R) Massachusetts Investors Growth Stock
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
. PIMCO CommodityRealReturn(R) Strategy
. T. Rowe Price Equity Income II
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
. Templeton Developing Markets VIP
. Templeton Global Bond VIP
. Templeton Growth VIP
. VanEck VIP Global Hard Assets Fund
(1)Also referred to as an "EQ Allocation investment option" in this prospectus.
(2)This is the variable investment option's new name, effective on or about
May 20, 2019, subject to regulatory approval. Please see "Portfolios of the
Trusts" later in this prospectus for the variable investment option's former
name.
Amounts that you allocate under your policy to any of the variable investment
options are invested in a corresponding "Portfolio" that is part of one of the
trusts (the "Trusts"), which are mutual funds. Please see "About the Portfolios
of the Trusts" for more information about the Portfolios and the Trusts. Your
investment results in a variable investment option will depend on those of the
related Portfolio. Any gains will generally be tax deferred and the life
insurance benefits we pay if the policy's insured person dies will generally be
income tax free.
OTHER CHOICES YOU HAVE. You have considerable flexibility to tailor the policy
to meet your needs. For example, subject to our rules, you can (1) choose when
and how much you contribute (as "premiums") to your policy, (2) pay certain
premium amounts to guarantee that your insurance coverage will continue for at
least a certain number of years, regardless of investment performance,
(3) borrow or withdraw amounts you have accumulated, (4) decrease the amount of
insurance coverage, (5) choose between two life insurance benefit options,
(6) elect to receive an insurance benefit if the insured person becomes
terminally ill, and (7) obtain certain optional benefits that we offer by
"riders" to your policy.
OTHER AXA EQUITABLE POLICIES. We offer a variety of fixed and variable life
insurance policies which offer policy features, including investment options,
that are different from those offered by this prospectus. Not every policy is
offered through your financial professional. Replacing existing insurance with
Incentive Life(R) '02 or another policy may not be to your advantage. You can
contact us to find out more about any other AXA Equitable insurance policy.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO
INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
#637043/AA & ADL
ELECTRONIC DELIVERY OF SHAREHOLDER REPORTS (PURSUANT TO RULE 30E-3). Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper
copies of the shareholder reports for portfolio companies available under your
policy will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Company or from your financial intermediary.
Instead, the reports will be made available on a web-site, and you will be
notified by mail each time a report is posted and provided with a website link
to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically from the
Company or your financial intermediary by calling 1-800-777-6510.
You may elect to receive all future reports in paper free of charge. You can
inform the Company or your financial intermediary that you wish to continue
receiving paper copies of your shareholder reports by calling 1-877-522-5035 or
by sending an email request to EquitableFunds@dfinsolutions.com. Your election
to receive reports in paper will apply to all portfolio companies available
under your policy.
Contents of this Prospectus
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1. RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS 6
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How you can pay for and contribute to your policy 6
The minimum amount of premiums you must pay 6
You can guarantee that your policy will not terminate
before a certain date 7
You can elect a "paid up" death benefit guarantee 7
Investment options within your policy 7
About your life insurance benefit 8
You can decrease your insurance coverage 8
You can increase your insurance coverage by purchasing
another policy 9
Accessing your money 9
Risks of investing in a policy 9
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2. RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY 10
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Tables of policy charges 10
How we allocate charges among your investment options 12
Changes in charges 12
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3. WHO IS AXA EQUITABLE? 13
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How to reach us 14
About our Separate Account FP 14
Your voting privileges 15
About the Trusts 15
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4. ABOUT THE PORTFOLIOS OF THE TRUSTS 16
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Portfolios of the Trusts 17
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5. DETERMINING YOUR POLICY'S VALUE 26
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Your account value 26
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"We,""our," "us" and the "Company" refer to AXA Equitable. "Financial
professional" means the registered representative of either AXA Advisors or an
unaffiliated broker dealer which has entered into a selling agreement with AXA
Distributors who is offering you this policy.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the policy's owner. If
a policy has more than one owner, all owners must join in the exercise of any
rights an owner has under the policy, and the word "owner" therefore refers to
all owners.
When we use the word "state," we also mean any other local jurisdiction whose
laws or regulations affect a policy.
This prospectus does not offer Incentive Life(R) '02 anywhere such offers are
not lawful. AXA Equitable does not authorize any information or representation
about the offering other than that contained or incorporated in this
prospectus, in any current supplements thereto, or in any related sales
materials authorized by AXA Equitable.
3
CONTENTS OF THIS PROSPECTUS
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6. TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS 27
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Transfers you can make 27
How to make transfers 27
Our automatic transfer service 27
Our asset rebalancing service 27
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7. ACCESSING YOUR MONEY 29
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Borrowing from your policy 29
Making withdrawals from your policy 29
Surrendering your policy for its net cash surrender value 30
Your option to receive a terminal illness living benefit 30
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8. TAX INFORMATION 31
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Basic income tax treatment for you and your beneficiary 31
Tax treatment of distributions to you (loans, partial
withdrawals, and full surrender) 31
Tax treatment of living benefits proceeds 33
Business and employer owned policies 33
Requirement that we diversify investments 33
Estate, gift, and generation-skipping taxes 33
Pension and profit-sharing plans 34
Split-dollar and other employee benefit programs 34
ERISA 34
3.8% Tax on Net Investment Income or "NII" 34
Our taxes 34
Tax withholding and information reporting 34
Possibility of future tax changes and other tax information 35
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9. MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS 37
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Alternative higher death benefit in certain cases 37
Guarantee premium test for no-lapse guarantees 37
Customer Loyalty Credit 38
Paid up death benefit guarantee 38
Other benefits you can add by rider 38
Variations among Incentive Life(R) '02 policies 40
Your options for receiving policy proceeds 40
Your right to cancel within a certain number of days 40
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10. MORE INFORMATION ABOUT CERTAIN POLICY CHARGES 41
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Deducting policy charges 41
Charges that the Trusts deduct 44
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11. MORE INFORMATION ABOUT PROCEDURES THAT APPLY TO YOUR
POLICY 45
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Dates and prices at which policy events occur 45
Policy issuance 45
Ways to make premium and loan payments 46
Assigning your policy 46
You can change your policy's insured person 46
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Requirements for surrender requests 47
Gender-neutral policies 47
Future policy exchanges 47
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12. MORE INFORMATION ABOUT OTHER MATTERS 48
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About our general account 48
Transfers of your account value 48
Telephone and Internet requests 49
Cybersecurity 50
Suicide and certain misstatements 50
When we pay policy proceeds 50
Changes we can make 50
Reports we will send you 51
Distribution of the policies 51
Legal proceedings 53
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13. FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA
EQUITABLE 54
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14. PERSONALIZED ILLUSTRATIONS 55
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Illustrations of policy benefits 55
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REQUESTING MORE INFORMATION
Statement of Additional Information
Table of contents
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|
4
CONTENTS OF THIS PROSPECTUS
An index of key words and phrases
This index should help you locate more information on the terms used in this
prospectus.
PAGE
account value 6
Administrative office 14
age 46
Allocation Date 7
alternative death benefit 8
amount at risk 42
anniversary 6, 8
assign; assignment 46
automatic transfer service 27
AXA Equitable 13
AXA Equitable Access Account 40
AXA Equitable Holdings, Inc. 13
basis 32
beneficiary 40
business day 45
Cash Surrender Value 29
Code 31
collateral 29
cost of insurance charge 42
cost of insurance rates 42
day 45
default 6
disruptive transfer activity 48
extended no-lapse guarantee 7
face amount 8
grace period 6
Guaranteed Interest Account 8
guaranteed interest option 8
guarantee premiums 7
Incentive Life(R) '02 1
insured person 8, 46
Internet 14, 49
investment funds 8
investment options 1, 7
issue date 46
lapse 6
loan, loan interest 29
market timing 48
|
PAGE
modified endowment contract 31
month, year 45
monthly deductions 12
net cash surrender value 30
no-lapse guarantee 7
Option A, B 8
our 3
owner 3
paid up 31
paid up death benefit guarantee 6, 7, 38
partial withdrawal 29
payment option 40
planned periodic premium 6
policy 1
Portfolio 1
premium payments 6
prospectus 1
rebalancing 27
receive 45
restored, restoration 7
riders 6
SEC 1
Separate Account FP 14
state 3
subaccount 14
surrender 29
surrender charge 10
target premium 51
transfers 27
Trusts 1, 15
unit values 14
units 26
us 3
variable investment options 1
we 3
withdrawal 29
you, your 3
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5
AN INDEX OF KEY WORDS AND PHRASES
1. Risk/benefit summary: Policy features, benefits and risks
Incentive Life(R) '02 is a variable life insurance policy that provides you
with flexible premium payment plans and benefits to meet your specific needs.
The basic terms of the policy require you to make certain payments in return
for life insurance coverage. The payments you can make and the coverage you can
receive under this "base policy" are described below.
Riders to your base policy can increase the benefits you receive and affect the
amounts you pay in certain circumstances. Available riders are listed in "Other
benefits you can add by rider" under "More information about policy features
and benefits" later in this prospectus.
HOW YOU CAN PAY FOR AND CONTRIBUTE TO YOUR POLICY
PREMIUM PAYMENTS. We call the amounts you contribute to your policy "premiums"
or "premium payments." The amount we require as your first premium varies
depending on the specifics of your policy and the insured person. Each
subsequent premium payment must be at least $100, although we can increase this
minimum if we give you advance notice. (Policies on an automatic premium
payment plan may have different minimums.) Otherwise, with a few exceptions
mentioned below, you can make premium payments at any time and in any amount.
SECTION 1035 EXCHANGES OF POLICIES WITH OUTSTANDING LOANS. If we approve, you
may purchase an Incentive Life(R) '02 policy through an assignment and exchange
of another life insurance policy with a cash surrender value pursuant to a
valid exchange under Section 1035 of the Internal Revenue Code (the "Code"). If
such other policy is subject to a policy loan, we may permit you to carry over
all or a portion of such loan to the Incentive Life(R) '02 policy, subject to
our administrative rules then in effect. In this case, we will treat any cash
paid, plus any loaned amount carried over to the Incentive Life(R) '02 policy,
as premium received in consideration of our issuing the policy. If we allow you
to carry over all or a portion of any such outstanding loan, then we will hold
amounts securing such loan in the same manner as the collateral for any other
policy loan, and your policy also will be subject to all our other rules
regarding loans (see "Borrowing from your policy" later in this prospectus).
YOU CAN GENERALLY PAY PREMIUMS AT SUCH TIMES AND IN SUCH AMOUNTS AS YOU LIKE
BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S 100TH BIRTHDAY, SO LONG
AS YOU DON'T EXCEED CERTAIN LIMITS DETERMINED BY THE FEDERAL INCOME TAX LAWS
APPLICABLE TO LIFE INSURANCE.
LIMITS ON PREMIUM PAYMENTS. The federal tax law definition of "life insurance"
limits your ability to pay certain high levels of premiums (relative to the
amount of your policy's insurance coverage). Also, if your premium payments
exceed certain other amounts specified under the Internal Revenue Code, your
policy will become a "modified endowment contract," which may subject you to
additional taxes and penalties on any distributions from your policy. See "Tax
information" later in this prospectus. We may return any premium payments that
would exceed those limits to you.
You can ask your financial professional to provide you with an Illustration of
Policy Benefits that shows you the amount of premiums you can pay, based on
various assumptions, without exceeding these tax law limits. The tax law limits
can change as a result of certain changes you make to your policy. For example,
a reduction in the face amount of your policy may reduce the amount of premiums
that you can pay and may impact whether your policy is a modified endowment
contract.
If at any time your policy's account value is high enough that the "alternative
higher death benefit" discussed later in this prospectus would apply, we
reserve the right to limit the amount of any premiums that you pay, unless the
insured person provides us with evidence of insurability satisfactory to us.
PLANNED PERIODIC PREMIUMS. Page 3 of your policy will specify a "planned
periodic premium." This is the amount that you request us to bill you. However,
payment of these or any other specific amounts of premiums is not mandatory.
You need to pay only the amount of premiums (if any) necessary to keep your
policy from lapsing and terminating as discussed below.
THE MINIMUM AMOUNT OF PREMIUMS YOU MUST PAY
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if your "net account value" is not enough to pay your
policy's monthly charges when due unless:
. you have paid sufficient premiums to maintain one of our available
guarantees against termination, your policy is still within the period of
that guarantee, and you do not have an outstanding loan (see "You can
guarantee that your policy will not terminate before a certain date"
below); or
. you have elected the "paid up" death benefit guarantee and it remains in
effect, and you do not have an outstanding loan (see "You can elect a "paid
up" death benefit guarantee" below).
("Account value" and "net account value" are explained under "Determining your
policy's value" later in this prospectus.)
We will mail a notice to you at your last known address if your policy lapses.
You will have a 61-day grace period to pay at least an amount prescribed in
your policy which would be enough to keep your policy in force for
approximately three months (without regard to investment performance). You may
not make any transfers or request any other policy changes during a grace
period. If we do not receive your payment by the end of the grace period, your
policy (and all riders to the policy) will terminate without value and all
coverage under your policy will cease. We will mail an additional notice to you
if your policy terminates.
YOUR POLICY WILL TERMINATE IF YOU DON'T PAY ENOUGH PREMIUMS (I) TO PAY THE
CHARGES WE DEDUCT OR (II) TO MAINTAIN IN EFFECT ONE OF THE GUARANTEES THAT CAN
KEEP YOUR POLICY FROM TERMINATING. HOWEVER, WE WILL FIRST SEND YOU A NOTICE AND
GIVE YOU THE OPPORTUNITY TO PAY ANY SHORTFALL.
6
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
You may owe taxes if your policy terminates while you have a loan outstanding,
even though you receive no additional money from your policy at that time. See
"Tax information," later in this prospectus.
RESTORING A TERMINATED POLICY. To have your policy "restored" (put back in
force), you must apply within six months after the date of termination. In some
states, you may have a longer period of time. You must also (i) present
evidence of insurability satisfactory to us and (ii) pay at least the amount of
premium that we require. The amount of payment will not be more than an amount
sufficient to cover total monthly deductions for 3 months, calculated from the
effective date of restoration, and the premium charge. We will determine the
amount of this required payment as if no interest or investment performance
were credited to or charged against your policy account. Your policy contains
additional information about the minimum amount of this premium and about the
values and terms of the policy after it is restored and the effective date of
such restoration. You may only restore your policy if it has terminated without
value. You may not restore a policy that was given up for its net cash
surrender value.
YOU CAN GUARANTEE THAT YOUR POLICY WILL NOT TERMINATE BEFORE A CERTAIN DATE
You can generally guarantee that your policy will not terminate for a number of
years by paying at least certain specified amounts of premiums. We call these
amounts "guarantee premiums" and they will be set forth on page 3 of your
policy. In most states you have two options for how long the guarantee will
last. The two guarantee options are as follows:
(1)a guarantee for the first five years of your policy (the policy calls this
the "no-lapse guarantee")
or
(2)a guarantee of 20 years, but in no case beyond the policy anniversary
nearest to the insured's 100th birthday (the policy calls this the "extended
no-lapse guarantee").
In some states, these guarantees may be referred to by different names.
We make no extra charge for either of these two guarantees against policy
termination. However, in order for either of those guarantees to be available,
you must have satisfied the "guarantee premium test" (discussed in "Guarantee
premium test for no-lapse guarantees" under "More information about policy
features and benefits" later in this prospectus), and any policy loan must not
exceed the policy account value. Maintaining the extended no-lapse guarantee
against policy termination will require you to pay more premiums than
maintaining only the five-year guarantee.
IF YOU PAY AT LEAST CERTAIN PRESCRIBED AMOUNTS OF PREMIUMS, AND HAVE NO POLICY
LOANS, YOUR POLICY WILL NOT LAPSE FOR A NUMBER OF YEARS, EVEN IF THE VALUE IN
YOUR POLICY BECOMES INSUFFICIENT TO PAY THE MONTHLY CHARGES.
YOU CAN ELECT A "PAID UP" DEATH BENEFIT GUARANTEE
In most states, provided certain requirements are met and subject to our
approval, you may elect to take advantage of our "paid up" death benefit
guarantee at any time after the fourth year of your policy if the insured's
attained age is 99 or less. If you elect the paid up death benefit guarantee,
we may initially reduce your base policy's face amount (see below). Thereafter,
your policy will not lapse and the death benefit will never be less than the
base policy's face amount, so long as the guarantee remains in effect. The
guarantee will terminate, however, if (i) at any time following the election,
the sum of any outstanding policy loans, accrued interest, and any "restricted"
amount due to exercise of a living benefits rider exceeds your policy's account
value, or (ii) you request us to terminate the election. For more information
about the circumstances under which you can elect the paid-up death benefit,
the possible reduction in face amount after this guarantee is elected
(including the possible imposition of surrender charges upon such reduction),
and other effects of this guarantee on your policy, see "Paid up death benefit
guarantee" under "More information about policy features and benefits" later in
this prospectus.
INVESTMENT OPTIONS WITHIN YOUR POLICY
Except as set forth in the next sentence, we will initially put all unloaned
amounts which you have allocated to variable investment options into such
options on the later of the business day that we receive the full minimum
initial premium or the register date (the "Investment Start Date").
In those states that require us to return your premium without adjustment for
investment performance within a certain number of days (see "Your right to
cancel within a certain number of days," later in this prospectus), we will
initially put all amounts which you have allocated to the variable investment
options into our EQ/Money Market investment option. In this case, on the first
business day following the twentieth day after your policy is issued, we will
reallocate that investment in accordance with your premium allocation
instructions then in effect. For policies issued in these states, the
"Allocation Date" is the first business day following the twentieth day after
your policy is issued. For all other policies, the Allocation Date is the
Investment Start Date.
You give such allocation instructions in your application to purchase a policy.
You can change the premium allocation percentages at any time, but this will
not affect any prior allocations. The allocation percentages that you specify
must always be in whole numbers and total exactly 100%.
The policy is between you and AXA Equitable. The policy is not an investment
advisory account, and AXA Equitable is not providing any investment advice or
managing the allocations under your policy. In the absence of a specific
written arrangement to the contrary, you, as the owner of the policy, have the
sole authority to make investment allocations and other decisions under the
policy. Your AXA Advisors' financial professional is acting as a broker-dealer
registered representative, and is not authorized to act as an investment
advisor or to manage the allocations under your policy. If your financial
professional is a registered representative with a broker-dealer other than AXA
Advisors, you should speak with him/her regarding any different arrangements
that may apply.
YOU CAN CHOOSE AMONG VARIABLE INVESTMENT OPTIONS.
7
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
VARIABLE INVESTMENT OPTIONS. The available variable investment options are
listed on the front cover of this prospectus. (Your policy and other
supplemental materials may refer to these as "Investment Funds".) The
investment results you will achieve in any one of these options will depend on
the investment performance of the corresponding Portfolio that shares the same
name as that option. That Portfolio follows investment practices, policies and
objectives that are appropriate to the variable investment option you have
chosen. You can lose your principal when investing in the variable investment
options. In periods of poor market performance, the net return, after charges
and expenses, may result in negative yields, including for the EQ/Money Market
variable investment option.
The advisors who make the investment decisions for each Portfolio are set forth
later in the prospectus under "About the Portfolios of the Trusts."
You will find other important information about each Portfolio in the separate
prospectuses for each Trust which accompany this prospectus, including a
comprehensive discussion of the risks of investing in each Portfolio. TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.). We may add or delete
variable investment options or Portfolios at any time.
GUARANTEED INTEREST OPTION. You can also allocate some or all of your policy's
value to our guaranteed interest option. We, in turn, invest such amounts as
part of our general assets. Periodically, we declare a fixed rate of interest
(3% minimum) on amounts that you allocate to our guaranteed interest option. We
credit and compound the interest daily at an effective annual rate that equals
the declared rate. The rates we are at any time declaring on outstanding
policies may differ from the rates we are then declaring for newly issued
policies. (The guaranteed interest option is part of what your policy and other
supplemental material may refer to as the "Guaranteed Interest Account.")
WE WILL PAY AT LEAST 3% ANNUAL INTEREST ON OUR GUARANTEED INTEREST OPTION.
ABOUT YOUR LIFE INSURANCE BENEFIT
YOUR POLICY'S FACE AMOUNT. In your application to buy an Incentive Life(R) '02
policy, you tell us how much insurance coverage you want on the life of the
insured person. We call this the "face amount" of the base policy. $50,000 is
the smallest amount of coverage you can request.
IF THE INSURED PERSON DIES, WE PAY A LIFE INSURANCE BENEFIT TO THE
"BENEFICIARY" YOU HAVE NAMED. THE AMOUNT WE PAY DEPENDS ON WHETHER YOU HAVE
CHOSEN DEATH BENEFIT OPTION A OR DEATH BENEFIT OPTION B. WE ALSO HAVE OPTIONS
AVAILABLE FOR THE MANNER IN WHICH WE PAY DEATH BENEFITS (SEE "YOUR OPTIONS FOR
RECEIVING POLICY PROCEEDS" UNDER "MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS" LATER IN THIS PROSPECTUS).
YOUR POLICY'S "DEATH BENEFIT" OPTIONS. In your policy application, you also
choose whether the basic amount (or "benefit") we will pay if the insured
person dies is:
. Option A -- THE POLICY'S FACE AMOUNT on the date of the insured person's
death. The amount of this death benefit doesn't change over time, unless
you take any action that changes the policy's face amount;
or
. Option B -- THE FACE AMOUNT PLUS THE POLICY'S "ACCOUNT VALUE" on the date
of death. Under this option, the amount of death benefit generally changes
from day to day, because many factors (including investment performance,
charges, premium payments and withdrawals) affect your policy's account
value.
Your policy's "account value" is the total amount that at any time is earning
interest for you or being credited with investment gains and losses under your
policy. (Account value is discussed in more detail under "Determining your
policy's value" later in this prospectus.)
Under Option B, your policy's death benefit will tend to be higher than under
Option A, assuming the same policy face amount and policy account value. As a
result, the monthly insurance charge we deduct will also be higher, to
compensate us for our additional risk.
ALTERNATIVE HIGHER DEATH BENEFIT IN LIMITED CASES. Your policy is designed to
always provide a minimum level of insurance protection relative to your
policy's account value, in part to meet the Internal Revenue Code's definition
of "life insurance." For more information on the alternative higher death
benefit and for information on other adjustments to the death benefit, see
"More information about policy features and benefits" later in this prospectus.
YOU CAN REQUEST A CHANGE IN YOUR DEATH BENEFIT OPTION ANY TIME AFTER THE SECOND
YEAR OF THE POLICY AND BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S
100TH BIRTHDAY; HOWEVER CHANGES TO OPTION B ARE NOT PERMITTED BEYOND THE POLICY
YEAR IN WHICH THE INSURED PERSON REACHES AGE 85.
CHANGE OF DEATH BENEFIT OPTION. If you change from Option A to Option B, we
automatically reduce your base policy's face amount by an amount equal to your
policy's account value at the time of the change. We may refuse this change if
the policy's face amount would be reduced below our then current minimum for
new policies. Changes from Option A to Option B are not permitted beyond the
policy year in which the insured person reaches age 85.
If you change from Option B to Option A, we automatically increase your base
policy's face amount by an amount equal to your policy's account value at the
time of the change.
If the alternative death benefit (referenced above) is higher than the base
policy's death benefit at the time of the change in death benefit option, we
will determine the new base policy face amount somewhat differently from the
general procedures described above.
We will not deduct or establish any amount of surrender charge as a result of a
change in death benefit option. Please refer to "Tax information" later in this
prospectus, to learn about certain possible income tax consequences that may
result from a change in death benefit option, including the effect of an
automatic increase or decrease in face amount.
YOU CAN DECREASE YOUR INSURANCE COVERAGE
You may request a decrease in your policy's face amount any time after the
second year of your policy and before the policy anniversary
8
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
nearest to the insured's 100th birthday. The requested decrease must be at
least $10,000. Please refer to "Tax information" for certain possible tax
consequences of changing the face amount.
We can refuse any requested decrease. We will not approve any decrease if we
are at that time being required to waive charges or pay premiums under any
optional disability waiver rider that is part of the policy.
The following additional conditions also apply:
You may not reduce the face amount below the minimum we are then requiring for
new policies. Nor will we permit a decrease that would cause your policy to
fail the Internal Revenue Code's definition of life insurance. Guarantee
premiums, as well as monthly deductions for the cost of insurance coverage,
will generally decrease from the time you reduce the face amount.
If you reduce the face amount during the first 10 years of your policy, we will
deduct all or part of the remaining surrender charge from your policy. Assuming
you have not previously changed the face amount, the amount of surrender charge
we will deduct will be determined by dividing the amount of the decrease by the
initial face amount and multiplying that fraction by the total amount of
surrender charge that still remains applicable to your policy. In no event will
the surrender charge due exceed your account value less any amounts we are
holding to secure policy loans (including any interest on those amounts that
have not yet been allocated to the variable investment options). We deduct the
charge from the same investment options as if it were a part of a regular
monthly deduction under your policy.
In some cases, we may have to make a distribution to you from your policy at
the time we decrease your policy's face amount or change your death benefit
option. This may be necessary in order to preserve your policy's status as life
insurance under the Internal Revenue Code. We may also be required to make such
a distribution to you in the future on account of a prior decrease in face
amount or change in death benefit option. The distribution may be taxable.
YOU CAN INCREASE YOUR INSURANCE COVERAGE BY PURCHASING ANOTHER POLICY
After the first policy year while this policy is in force and the insured
person is not more than attained age 85, and provided that there has been no
previous reduction in the face amount, you may ask us to increase the face
amount of insurance. You must provide evidence satisfactory to us of the
insurability of the insured person. Any increase you ask for must be at least
$10,000. If the increase is approved, we will issue a new variable life policy
for the amount of the increase. The new policy will be issued for the age and
rating class of the insured person on the date of increase, and, if we are no
longer issuing Incentive Life(R) '02, will be a variable life policy we are
issuing on the date of increase. The new policy will be subject to its own
terms and conditions, except that (1) we will waive any portion of the monthly
administrative charge for the new policy that is independent of the face amount
of insurance; and (2) any reduction in face amount, change in death benefit
option, or partial withdrawal may not reduce the face amount of the new policy
to less than $10,000.
ACCESSING YOUR MONEY
You can access the money in your policy in different ways. You may borrow up to
90% of the difference between your policy's account value and any applicable
surrender charges, less any outstanding loans (plus accrued loan interest) and
less any amounts restricted following your receipt of a living benefits
payment. We will charge interest on the amount of the loan. See "Borrowing from
your policy" later in this prospectus for more information. You can also make a
partial withdrawal of $500 or more of your net cash surrender value (defined
later in this prospectus under "Surrendering your policy for its net cash
surrender value") at any time after the first year of your policy and before
the policy anniversary nearest to the insured's 100th birthday. See "Making
withdrawals from your policy" later in this prospectus for more information.
Finally, you can surrender (turn in) your policy for its net cash surrender
value at any time. See "Surrendering your policy for its net cash surrender
value" later in this prospectus. See "Tax information" later in this
prospectus, for the tax treatment of the various ways in which you can access
your money.
RISKS OF INVESTING IN A POLICY
The policy is unsuitable as a short-term savings vehicle. Some of the principal
risks of investing in a policy are as follows:
. If the investment options you choose perform poorly, you could lose some or
all of the premiums you pay.
. If the investment options you choose do not make enough money to pay for
the policy charges, except to the extent provided by any guarantees against
termination or paid-up death benefit guarantee you may have, you could have
to pay more premiums to keep your policy from terminating.
. If any policy loan and any accrued loan interest either equals or exceeds
the account value, your policy will terminate subject to the policy's Grace
Period provision.
. We can increase, without your consent and subject to any necessary
regulatory approvals, any charge that you currently pay at less than the
maximum amount. We will not increase any charge beyond the highest maximum
noted in the tables in the next chapter in "Tables of policy charges" under
"Risk/benefit summary: Charges and expenses you will pay."
. You may have to pay a surrender charge and there may be adverse tax
consequences if you wish to discontinue some or all of your insurance
coverage under a policy.
. Partial withdrawals from your policy are available only after the first
policy year and must be at least $500 and no more than the net cash
surrender value. Under certain circumstances, we will automatically reduce
your policy's face amount as a result of a partial withdrawal.
Your policy permits other transactions that also have risks. These and other
risks and benefits of investing in a policy are discussed in detail throughout
this prospectus.
A comprehensive discussion of the risks of each investment option may be found
in the Trust prospectus for that investment option.
9
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
2. Risk/benefit summary: Charges and expenses you will pay
TABLES OF POLICY CHARGES
For more information about some of these charges, see "Deducting policy
charges" under "More information about certain policy charges" later in this
prospectus. The illustrations of Policy Benefits that your financial
professional will provide will show the impact of the actual current and
guaranteed maximum rates, if applicable, of the following policy charges, based
on various assumptions (except for the loan interest spread, where we use
current rates in all cases).
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the policy.
This table shows the charges that we deduct under the terms of your policy when
you buy and each time you contribute to your policy, surrender the policy,
reduce the face amount or transfer policy account value among investment
options. All charges are shown on a guaranteed maximum basis. The current
charges may be lower than the guaranteed maximum for certain charges. Since the
charges described in the table below vary based on individual characteristics
of the insured, these charges may not be representative of the charge that you
will pay. In particular, the initial amount of surrender charge depends on each
policy's specific characteristics. Your financial professional can provide you
with more information about these charges as they relate to the insured's
particular characteristics. See "Deducting policy charges" under "More
information about certain policy charges."
--------------------------------------------------------------------------------------------
TRANSACTION FEES
--------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
--------------------------------------------------------------------------------------------
PREMIUM CHARGE From each premium 6% of each premium
payment./(1)/
SURRENDER (TURNING IN) OF Upon surrender Initial surrender charge per
YOUR POLICY DURING ITS FIRST $1,000 of initial base policy
10 YEARS face amount:/(2)/
Highest: $30.93
Lowest: $5.97
Representative: $13.81/(3)/
REQUEST A DECREASE IN YOUR Effective date of the decrease A pro rata portion of the
POLICY'S FACE AMOUNT charge that would apply to a
full surrender at the time of
the decrease.
TRANSFERS AMONG INVESTMENT Upon transfer $25 per transfer./(4)/
OPTIONS
ADDING A LIVING BENEFITS RIDER At the time of the transaction $100 (if elected after policy
issue)
EXERCISE OF OPTION TO RECEIVE At the time of the transaction $250
A "LIVING BENEFIT"
|
SPECIAL SERVICES CHARGES
Wire transfer charge/(5)/ At the time of the transaction Current and Maximum $90
Charge:
Express mail charge/(5)/ At the time of the transaction Current and Maximum $35
Charge:
Policy illustration charge/(6)/ At the time of the transaction Current Charge: $0
Maximum Charge: $25
Duplicate policy charge/(6)/ At the time of the transaction Current and Maximum $35
Charge:
Policy history charge/(6)(7)/ At the time of the transaction Current and Maximum $50
Charge:
Charge for returned payments/(6)/ At the time of the transaction Current and Maximum $25
Charge:
-------------------------------------------------------------------------------------------------
|
10
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
This table shows the fees and expenses that you will pay periodically during
the time that you own the Policy, not including underlying Trust portfolio fees
and expenses.
-----------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN
UNDERLYING TRUST PORTFOLIO
OPERATING EXPENSES
-----------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
-----------------------------------------------------------------------------------------------
ADMINISTRATIVE CHARGE/(8)/ Monthly (1) Policy Year Amount Deducted
1 $20
2+ $10
plus
|
(2) Charge per $1,000 of initial base policy
face amount during your policy's first ten
years:
Highest: $0.10
Lowest: $0.03
Representative: $0.06/(9)/
----------------------------------------------------------------------------------------------
COST OF INSURANCE CHARGE/(8)(10)/ Monthly Charge per $1,000 of the amount for which we
are at risk:/(11)/
Highest: $83.34
Lowest: $0.06
Representative: $0.15/(12)/
----------------------------------------------------------------------------------------------
|
MORTALITY AND EXPENSE Monthly Annual % of your value in our
RISK CHARGE Policy Year variable investment options
----------- -----------------------------
1-15 0.80%
16+ 0.50%
----------------------------------------------------------------------------------------
|
LOAN INTEREST SPREAD/(13)/ On each policy anniversary (or 2% of loan amount./(14)/
on loan termination, if earlier)
-------------------------------------------------------------------------------------------------------
OPTIONAL RIDER CHARGES While the rider is in effect
-------------------------------------------------------------------------------------------------------
CHILDREN'S TERM INSURANCE Charge per $1,000 of
Monthly rider benefit amount:
$0.50
-------------------------------------------------------------------------------------------------------
DISABILITY DEDUCTION WAIVER Percentage of all other
Monthly monthly charges:
Highest: 132%
Lowest: 7%
Representative: 12%/(15)/
-------------------------------------------------------------------------------------------------------
DISABILITY PREMIUM WAIVER Monthly Charge for disability
premium waiver per
$1,000 of benefit for
which such rider is
purchased:/(16)/
Initial base policy face amount:/(17)/
Highest: $0.76
Lowest: $0.02
Representative:
$0.07/(18)/
Option to purchase
additional insurance:
Highest: $0.08
Lowest: $0.02
Representative:
$0.03/(18)/
Children's term
insurance:
Highest: $0.03
Lowest: $0.01
Representative:
$0.01/(18)/
-------------------------------------------------------------------------------------------------------
OPTION TO PURCHASE ADDITIONAL Monthly Charge per $1,000 of
INSURANCE rider benefit amount:
Highest: $0.17
Lowest: $0.04
Representative:
$0.16/(9)/
-------------------------------------------------------------------------------------------------------
|
(1)We may increase this charge higher than 6%, however, as a result of changes
in the tax laws which increase our expenses. Currently, we reduce this
charge to 3% of each premium payment after an amount equal to ten "target
premiums" has been paid. The "target premium" is actuarially determined for
each policy, based on that policy's
11
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
specific characteristics, as well as the policy's face amount, among other
factors. Generally, the target premiums per thousand are lower for face
amounts of $250,000 and higher. In addition, if your policy includes the
accounting benefit endorsement, a portion of the deductions from premiums
will be refunded upon surrender within the first three policy years (see
"Accounting benefit endorsement" in "More information about policy features
and benefits" later in this prospectus).
(2)If your policy includes the accounting benefit endorsement, the surrender
charges are reduced (see "Accounting benefit endorsement" in "More
information about policy features and benefits" later in this prospectus).
(3)This representative amount is the rate we guarantee for a representative
insured male, non-tobacco user, age 35 at issue.
(4)No charge, however, will ever apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any
transfer pursuant to our automatic transfer service or asset rebalancing
service as discussed later in this prospectus.
(5)Unless you specify otherwise, this charge will be deducted from the amount
you request.
(6)The charge for this service must be paid using funds outside of your policy.
Please see "Deducting policy charges" under "More information about certain
policy charges" for more information.
(7)The charge for this service may be less depending on the policy history you
request. Please see "Deducting policy charges" under "More information about
certain policy charges" for more information.
(8)Not applicable after the insured person reaches age 100.
(9)This representative amount is the rate we guarantee for a representative
insured age 35 at issue.
(10)Insured persons who present particular health, occupational or avocational
risks may be charged other additional charges as specified in their
policies.
(11)Our amount "at risk" is the difference between the amount of death benefit
and the account value as of the deduction date.
(12)This representative amount is the rate we guarantee in the first policy
year for a representative insured male, age 35 at issue in the standard
non-tobacco user risk class.
(13)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
loan interest spread is the excess of the interest rate we charge over the
interest rate we credit.
(14)We may, however, increase this charge higher than 2% as a result of changes
in the tax laws which increase our expenses.
(15)This representative amount is the rate we guarantee in the first policy
year for a representative insured male age 35 at issue who is not in a
rated risk class.
(16)Amount charged equals the sum of disability premium waiver rider charges
corresponding to the base policy, and to any option to purchase additional
insurance or children's term insurance riders that you have added to your
policy.
(17)The monthly charges corresponding to the base policy will be adjusted
proportionately to any face amount reduction made at your request or
resulting from a partial withdrawal under death benefit Option A.
(18)This representative amount is the rate we guarantee for a representative
insured male, age 35 at issue who is in the non-rated non-tobacco user risk
class.
You also bear your proportionate share of all fees and expenses paid by a
Portfolio that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses currently
charged by any of the Portfolios that you will pay periodically during the time
that you own the Policy. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. MORE DETAIL CONCERNING
EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE TRUST PROSPECTUS FOR
THAT PORTFOLIO.
-----------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
-----------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses (expenses that are deducted from Portfolio assets Lowest Highest
including management fees, 12b-1 fees, service fees and/or other expenses)/(1)/ 0.58% 2.17%
-----------------------------------------------------------------------------------------------------------
|
(1)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses. Pursuant to a contract, AXA Equitable
Funds Management Group, LLC has agreed to make payments or waive its
management, administrative and other fees to limit the expenses of certain
affiliated Portfolios through April 30, 2020 ("Expense Limitation
Arrangement") (unless the Trust's Board of Trustees consents to an earlier
revision or termination of this agreement). The Expense Limitation
Arrangement may be terminated by AXA Equitable Funds Management Group, LLC
at any time after April 30, 2020. The range of expenses in the table above
does not include the effect of any Expense Limitation Arrangement. The range
of expense in the table below includes the effect of the Expense Limitation
Arrangements.
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
--------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses after the effect of Expense Limitation Arrangements/(/*/)/ Lowest Highest
0.58% 2.02%
--------------------------------------------------------------------------------------------------------------------
|
(*)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses.
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
In your application for a policy, you tell us from which investment options you
want us to take the policy's monthly deductions as they fall due. You can
change these instructions at any time. If we cannot deduct the charge as your
most current instructions direct, we will allocate the deduction among your
investment options proportionately to your value in each.
CHANGES IN CHARGES
We reserve the right in the future to (1) make a charge for certain taxes or
reserves set aside for taxes (see "Our taxes" under "Tax information" later in
this prospectus) that might be imposed on us; (2) make a charge for the
operating expenses of our variable investment options (including, without
limitation, SEC registration fees and related legal counsel fees and auditing
fees); or (3) change our other current policy charges (in no event will they
exceed the maximum charges guaranteed in your policy).
Any changes that we make in our current charges or charge rates will be on a
basis that is equitable to all policy owners of a given class, and will be
determined based on reasonable assumptions as to expenses, mortality, policy
and contract claims, taxes, investment income and lapses. Any changes in
charges may apply to then in force policies, as well as to new policies. You
will be notified in writing of any changes in charges under your policy.
12
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
3. Who is AXA Equitable?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
AXA Equitable Holdings, Inc. and its consolidated subsidiaries managed
approximately $618.6 billion in assets as of December 31, 2018. For more than
150 years AXA Equitable has been among the largest insurance companies in the
United States. We are licensed to sell life insurance and annuities in all
fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands. Our home office is located at 1290 Avenue of the Americas, New York,
NY 10104.
13
WHO IS AXA EQUITABLE?
HOW TO REACH US
To obtain (1) any forms you need for communicating with us, (2) unit values and
other values under your policy, and (3) any other information or materials that
we provide in connection with your policy or the Portfolios, you may
communicate with our Administrative Office as listed below for the purposes
described. Please refer to "Telephone and Internet requests" for effective
dates for processing telephone, Internet and fax requests, later in this
prospectus.
BY MAIL:
AT THE POST OFFICE BOX FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
P.O. Box 1047
Charlotte, North Carolina 28201-1047
BY EXPRESS DELIVERY ONLY:
AT THE STREET ADDRESS FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
8501 IBM Drive, Suite 150
Charlotte, North Carolina 28262-4333
1-704-341-7000 (for express delivery purposes only)
BY PHONE:
Monday through Thursday, 8:00 AM to 7:00 PM and Friday, 8:00 AM to 5:30 PM,
Eastern Time: 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of
the U.S.).
BY E-MAIL:
life-service@axa.us.com
BY FAX:
1-855-268-6378
BY INTERNET:
You may register for online account access at www.axa.com or us.axa.com for
those outside the U.S. Our website provides access to account information and
customer service. After registering, you can view account details, perform
certain transactions, print customer service forms and find answers to common
questions.
REQUIRED FORMS. We require that the following types of communications be on
specific forms we provide for that purpose:
(1)request for our automatic transfer service (our dollar cost averaging
service);
(2)request for our asset rebalancing service;
(3)transfers among investment options (if submitted by e-mail);
(4)designation of new policy owner(s); and
(5)designation of new beneficiary(ies).
OTHER REQUESTS. We also have specific forms that we recommend you use for the
following:
(a)policy surrenders;
(b)transfers among investment options (not submitted by e-mail);
(c)changes in allocation percentages for premiums and deductions; and
(d)electing the paid up death benefit guarantee.
You can also change your allocation percentages, transfer among investment
options and/or change your address (1) by phone (2) over the Internet, through
axa.com or us.axa.com for those outside the U.S., or (3) by writing our
Administrative Office. For more information about transaction requests you can
make by phone or over the Internet, see "How to make transfers" and "Telephone
and Internet requests" later in this prospectus. In the future, we may require
that certain requests be completed over the Internet.
Certain methods of contacting us, such as by telephone or electronically, may
be unavailable or delayed (for example our fax service may not be available at
all times and/or we may be unavailable due to emergency closing). In addition,
the level and type of service available may be restricted based on criteria
established by us.
We reserve the right to limit access to these services if we determine that you
are engaged in a disruptive transfer activity, such as "market timing." (See
"Disruptive transfer activity" in "More information about other matters.")
FORMAL REQUIREMENTS. Except for properly authorized telephone or Internet
transactions, any notice or request that does not use our standard form must be
in writing. It must be dated and signed by you and should also specify your
name, title (if applicable), the insured person's name (if different), your
policy number and adequate details about the notice you wish to give or other
action you wish us to take. We may require you to return your policy to us
before we make certain policy changes that you may request.
The proper person to sign forms, notices and requests would normally be the
owner or any other person that our procedures permit to exercise the right or
privilege in question. If there are joint owners all must sign. Any irrevocable
beneficiary or assignee that we have on our records also must sign certain
types of requests.
You should send all requests, notices and payments to our Administrative Office
at the addresses specified above. We will also accept requests and notices by
fax at the above number, if we believe them to be genuine. We reserve the
right, however, to require an original signature before acting on any faxed
item. You must send premium payments after the first one to our Administrative
Office at the above addresses; except that you should send any premiums for
which we have billed you to the address on the billing notice.
EDELIVERY
You can register to receive statements and other documents electronically. You
can do so by visiting our website at www.axa.com.
ABOUT OUR SEPARATE ACCOUNT FP
Each variable investment option is a part (or "subaccount") of our Separate
Account FP. We established Separate Account FP under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable investment
options for owners of our variable life insurance policies. We are the legal
owner of all of the assets in Separate Account FP and may withdraw any amounts
that exceed our reserves and other liabilities with respect to variable
14
WHO IS AXA EQUITABLE?
investment options under our policies. For example, we may withdraw amounts
from Separate Account FP that represent our investments in Separate Account FP
or that represent fees and charges under the policies that we have earned.
Income, gains and losses credited to, or charged against Separate Account FP
reflect its own investment experience and not the investment experience of AXA
Equitable's other assets.
Separate Account FP is registered with the SEC under the Investment Company Act
of 1940 and is registered and classified under that act as a "unit investment
trust." The SEC, however, does not manage or supervise AXA Equitable or
Separate Account FP. Although the Separate Account is registered, the SEC does
not monitor the activity of Separate Account FP on a daily basis. AXA Equitable
is not required to register, and is not registered, as an investment company
under the Investment Company Act of 1940.
Each subaccount (variable investment option) of Separate Account FP available
under Incentive Life(R) '02 invests solely in the applicable class of shares
issued by the corresponding Portfolio of the applicable Trust. Separate Account
FP immediately reinvests all dividends and other distributions it receives from
a Portfolio in additional shares of that class in that Portfolio.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable life insurance and/or annuity products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA VIP Premier Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policy owners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policy owners, we
will see to it that appropriate action is taken to do so.
YOUR VOTING PRIVILEGES
VOTING OF PORTFOLIO SHARES. As the legal owner of any Portfolio shares that
support a variable investment option, we will attend (and have the right to
vote at) any meeting of shareholders of the Portfolio (or the Trusts). To
satisfy currently-applicable legal requirements, however, we will give you the
opportunity to tell us how to vote the number of each Portfolio's shares that
are attributable to your policy. The number of full and fractional votes you
are entitled to will be determined by dividing the policy account value (minus
any policy indebtedness) allocable to an investment option by the net asset
value per unit for the Portfolio underlying that investment option. We will
vote shares attributable to policies for which we receive no instructions in
the same proportion as the instructions we do receive from all policies that
participate in our Separate Account FP (discussed below). With respect to any
Portfolio shares that we are entitled to vote directly (because we do not hold
them in a separate account or because they are not attributable to policies),
we will vote in proportion to the instructions we have received from all
holders of variable annuity and variable life insurance policies who are using
that Portfolio. One effect of proportional voting is that a small number of
policy owners may control the outcome of a vote.
Under current legal requirements, we may disregard the voting instructions we
receive from policy owners only in certain narrow circumstances prescribed by
SEC regulations. If we do, we will advise you of the reasons in the next annual
or semiannual report we send to you.
VOTING AS POLICY OWNER. In addition to being able to instruct voting of
Portfolio shares as discussed above, policy owners that use our variable
investment options may in a few instances be called upon to vote on matters
that are not the subject of a shareholder vote being taken by any Portfolio. If
so, you will have one vote for each $100 of account value in any such option;
and we will vote our interest in Separate Account FP in the same proportion as
the instructions we receive from holders of Incentive Life(R) '02 and other
policies that Separate Account FP supports.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
15
WHO IS AXA EQUITABLE?
4. About the Portfolios of the Trusts
We offer both affiliated and unaffiliated Trusts, which in turn offer one or
more Portfolios. AXA Equitable Funds Management Group, LLC ("AXA FMG"), a
wholly owned subsidiary of AXA Equitable, serves as the investment adviser of
the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some
affiliated Portfolios, AXA FMG has entered into sub-advisory agreements with
one or more other investment advisers (the "sub-advisers") to carry out
investment decisions for the Portfolios. As such, among other responsibilities,
AXA FMG oversees the activities of the sub-advisers with respect to the
affiliated Trusts and is responsible for retaining or discontinuing the
services of those sub-advisers. The chart below indicates the sub-adviser(s)
for each Portfolio, if any. The chart below also shows the currently available
Portfolios and their investment objectives.
You should be aware that AXA Advisors, LLC and AXA Distributors, LLC (together,
the "Distributors") directly or indirectly receive 12b-1 fees from affiliated
Portfolios for providing certain distribution and/or shareholder support
services. These fees will not exceed 0.25% of the Portfolios' average daily net
assets. The affiliated Portfolios' sub-advisers and/or their affiliates may
also contribute to the cost of expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the sub-advisers'
respective Portfolios. In addition, AXA FMG, a wholly owned subsidiary of AXA
Equitable, receives management fees and administrative fees in connection with
the services it provides to the Portfolios. As such, it may be more profitable
for us to offer affiliated Portfolios than to offer unaffiliated Portfolios.
AXA Equitable or the Distributors may directly or indirectly receive 12b-1 fees
and additional payments from certain unaffiliated Portfolios, their advisers,
sub-advisers, distributors or affiliates, for providing certain administrative,
marketing, distribution and/or shareholder support services. These fees and
payments range from 0% to 0.60% of the unaffiliated Portfolios' average daily
net assets. The Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
Portfolios.
As a policy owner, you may bear the costs of some or all of these fees and
payments through your indirect investment in the Portfolios. (See the
Portfolios' prospectuses for more information.) These fees and payments, as
well as the Portfolios' investment management fees and administrative expenses,
will reduce the underlying Portfolios' investment returns. AXA Equitable may
profit from these fees and payments. AXA Equitable considers the availability
of these fees and payment arrangements during the selection process for the
underlying Portfolios. These fees and payment arrangements may create an
incentive for us to select Portfolios (and classes of shares of Portfolios)
that pay us higher amounts.
Some affiliated Portfolios invest in other affiliated Portfolios (the "EQ Fund
of Fund Portfolios"). The EQ Fund of Fund Portfolios offer policy owners a
convenient opportunity to invest in other Portfolios that are managed and have
been selected for inclusion in the EQ Fund of Fund Portfolios by AXA FMG. AXA
Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the
benefits of such Portfolios to policy owners and/or suggest that policy owners
consider whether allocating some or all of their account value to such
Portfolios is consistent with their desired investment objectives. In doing so,
AXA Equitable, and/or its affiliates, may be subject to conflicts of interest
insofar as AXA Equitable may derive greater revenues from the EQ Fund of Fund
Portfolios than certain other Portfolios available to you under your policy.
Please see "Allocating your contributions" later in this section for more
information about your role in managing your allocations.
As described in more detail in the Portfolio prospectuses, the EQ Managed
Volatility Portfolios may utilize a proprietary volatility management strategy
developed by AXA FMG (the "EQ volatility management strategy") and, in
addition, certain EQ Fund of Fund Portfolios may invest in affiliated
Portfolios that utilize this strategy. The EQ volatility management strategy
uses futures and options, such as exchange-traded futures and options contracts
on securities indices, to reduce the Portfolio's equity exposure during periods
when certain market indicators indicate that market volatility is above
specific thresholds set for the Portfolio. When market volatility is increasing
above the specific thresholds set for a Portfolio utilizing the EQ volatility
management strategy, the adviser of the Portfolio may reduce equity exposure.
Although this strategy is intended to reduce the overall risk of investing in
the Portfolio, it may not effectively protect the Portfolio from market
declines and may increase its losses. Further, during such times, the
Portfolio's exposure to equity securities may be less than that of a
traditional equity portfolio. This may limit the Portfolio's participation in
market gains and result in periods of underperformance, including those periods
when the specified benchmark index is appreciating, but market volatility is
high.
The EQ Managed Volatility Portfolios that include the EQ volatility management
strategy as part of their investment objective and/or principal investment
strategy, and the EQ Fund of Fund Portfolios that invest in other Portfolios
that use the EQ volatility management strategy, are identified below in the
chart by a "(check mark)" under the column entitled "Volatility Management."
Portfolios that utilize the EQ volatility management strategy (or, in the case
of certain EQ Fund of Fund Portfolios, invest in other Portfolios that use the
EQ volatility management strategy) are designed to reduce the overall
volatility of your account value and provide you with risk-adjusted returns
over time. During rising markets, the EQ volatility management strategy,
however, could result in your account value rising less than would have been
the case had you been invested in a Portfolio that does not utilize the EQ
volatility management strategy or, in the case of the EQ Fund of Fund
Portfolios, that invest exclusively in other Portfolios that do not use the
volatility management strategy. Conversely, investing in investment options
that feature a managed-volatility strategy may be helpful in a declining market
when high market volatility triggers a reduction in the investment option's
equity exposure because during these periods of high volatility, the risk of
losses from investing in equity securities may increase. In these instances,
your account value may decline less than would have been the case had you not
been invested in investment options that feature a volatility management
strategy.
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the EQ volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
differ from the EQ volatility management strategy. Any such unaffiliated
Portfolio is not identified under "Volatility Management" below in the chart.
Such techniques could also impact your account value in the same manner
described above. Please see the Portfolio prospectuses for more information
about the Portfolios' objective and strategies.
16
ABOUT THE PORTFOLIOS OF THE TRUSTS
Portfolio allocations in certain AXA variable annuity contracts with guaranteed
benefits are subject to our Asset Transfer Program (ATP) feature. The ATP helps
us manage our financial exposure in connection with providing certain
guaranteed benefits, by using predetermined mathematical formulas to move
account value between the EQ/Ultra Conservative Strategy Portfolio (an
investment option utilized solely by the ATP) and the other Portfolios offered
under those contracts. You should be aware that operation of the predetermined
mathematical formulas underpinning the ATP has the potential to adversely
impact the Portfolios, including their performance, risk profile and expenses.
This means that Portfolio investments in contracts with no ATP feature, such as
yours, could still be adversely impacted. Particularly during times of high
market volatility, if the ATP triggers substantial asset flows into and out of
a Portfolio, it could have the following effects on all contract owners
invested in that Portfolio:
(a)By requiring a Portfolio sub-adviser to buy and sell large amounts of
securities at inopportune times, a Portfolio's investment performance and
the ability of the sub-adviser to fully implement the Portfolio's
investment strategy could be negatively affected; and
(b)By generating higher turnover in its securities or other assets than it
would have experienced without being impacted by the ATP, a Portfolio
could incur higher operating expense ratios and transaction costs than
comparable funds. In addition, even Portfolios structured as
funds-of-funds that are not available for investment by contract owners
who are subject to the ATP could also be impacted by the ATP if those
Portfolios invest in underlying funds that are themselves subject to
significant asset turnover caused by the ATP. Because the ATP formulas
generate unique results for each contract, not all contract owners who
are subject to the ATP will be affected by operation of the ATP in the
same way. On any particular day on which the ATP is activated, some
contract owners may have a portion of their account value transferred to
the EQ/Ultra Conservative Strategy Portfolio investment option and others
may not. If the ATP causes significant transfers of total account value
out of one or more Portfolios, any resulting negative effect on the
performance of those Portfolios will be experienced to a greater extent
by a contract owner (with or without the ATP) invested in those
Portfolios whose account value was not subject to the transfers.
PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP INVESTMENT ADVISER
TRUST PORTFOLIO (AND SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ A Seeks to achieve high total return through . AXA Equitable
MULTI-SECTOR BOND a combination of current income and Funds
capital appreciation. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL B Seeks to achieve long-term growth of . AXA Equitable
CAP GROWTH capital. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL A Seeks to achieve long-term growth of . AXA Equitable
CAP VALUE capital. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE A Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION/(*)(1)/ appreciation. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/CONSERVATIVE A Seeks to achieve a high level of current . AXA Equitable (check mark)
ALLOCATION/(*)(2)/ income. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
A Seeks to achieve current income and . AXA Equitable (check mark)
EQ/CONSERVATIVE-PLUS growth of capital, with a greater Funds
ALLOCATION/(*)(3)/ emphasis on current income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/MODERATE A Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION/(*)(4)/ appreciation and current income. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/MODERATE-PLUS A Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION/(*)(5)/ appreciation and current income, with a Funds
greater emphasis on capital appreciation. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
TARGET 2025 B Seeks the highest total return over time . AXA Equitable
ALLOCATION consistent with its asset mix. Total return Funds
includes capital growth and income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
TARGET 2035 B Seeks the highest total return over time . AXA Equitable
ALLOCATION consistent with its asset mix. Total return Funds
includes capital growth and income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
TARGET 2045 B Seeks the highest total return over time . AXA Equitable
ALLOCATION consistent with its asset mix. Total return Funds
includes capital growth and income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
TARGET 2055 B Seeks the highest total return over time . AXA Equitable
ALLOCATION consistent with its asset mix. Total return Funds
includes capital growth and income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
|
17
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------------------
1290 VT CONVERTIBLE IB Seeks a high level of total return. . AXA Equitable Funds
SECURITIES Management Group, LLC
. Palisade Capital
Management, L.L.C.
------------------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE IB Seeks to achieve total return from long- . AXA Equitable Funds
DYNAMIC ALLOCATION term capital appreciation and income. Management Group, LLC
. DoubleLine Capital LP
------------------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE IB Seeks to maximize current income and . AXA Equitable Funds
OPPORTUNISTIC BOND total return. Management Group, LLC
. DoubleLine Capital LP
------------------------------------------------------------------------------------------------------------------------------
1290 VT EQUITY IB Seeks a combination of growth and . AXA Equitable Funds
INCOME income to achieve an above-average and Management Group, LLC
consistent total return. . Barrow, Hanley, Mewhinney
& Strauss LLC
------------------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO IB Seeks to achieve capital appreciation. . AXA Equitable Funds
MERGERS & Management Group, LLC
ACQUISITIONS . GAMCO Asset Management,
Inc.
------------------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO SMALL IB Seeks to maximize capital appreciation. . AXA Equitable Funds
COMPANY VALUE Management Group, LLC
. GAMCO Asset Management,
Inc.
------------------------------------------------------------------------------------------------------------------------------
1290 VT SMARTBETA IB Seeks to achieve long-term capital . AXA Equitable Funds
EQUITY appreciation. Management Group, LLC
. AXA Rosenberg Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
1290 VT SOCIALLY IA Seeks to achieve long-term capital . AXA Equitable Funds
RESPONSIBLE appreciation. Management Group, LLC
. BlackRock Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - IB Seeks long-term capital appreciation and . AXA Equitable Funds
ALT 20 current income. Management Group, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/400 MANAGED IB Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(6)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds
returns and managing volatility in the Management Group, LLC
Portfolio. . BlackRock Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/500 MANAGED IB Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(7)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds
returns and managing volatility in the Management Group, LLC
Portfolio. . BlackRock Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/2000 MANAGED IB Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(8)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds
returns and managing volatility in the Management Group, LLC
Portfolio. . BlackRock Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/AB SMALL CAP IA Seeks to achieve long-term growth of . AllianceBernstein L.P.
GROWTH/(*)(9)/ capital. . AXA Equitable Funds
Management Group, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/AMERICAN CENTURY IB Seeks to achieve long-term capital . American Century
MID CAP VALUE FUND growth. Income is a secondary objective. Investment Management,
Inc.
. AXA Equitable Funds
Management Group, LLC
------------------------------------------------------------------------------------------------------------------------------
|
18
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC IA Seeks to achieve capital appreciation and . AXA Equitable Funds
VALUE EQUITY secondarily, income. Management Group, LLC
. BlackRock Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN IA Seeks to achieve long-term growth of . AXA Equitable Funds
RESEARCH capital. Management Group, LLC
. Capital Guardian Trust
Company
------------------------------------------------------------------------------------------------------------------------------
EQ/CLEARBRIDGE IA Seeks to achieve long-term capital . AXA Equitable Funds
LARGE CAP growth. Management Group, LLC
GROWTH/(*)(10)/ . ClearBridge Investments,
LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK IA Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds
return performance of the Russell 3000(R) Management Group, LLC
Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 3000(R) Index.
------------------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX IA Seeks to achieve a total return before . AXA Equitable Funds
expenses that approximates the total return Management Group, LLC
performance of the Bloomberg Barclays U.S. . SSgA Funds Management,
Intermediate Government/Credit Bond Inc.
Index, including reinvestment of dividends,
at a risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government/Credit Bond Index.
------------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX IA Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total . AXA Equitable Funds
return performance of the Standard & Management Group, LLC
Poor's 500 Composite Stock Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Standard & Poor's 500 Composite Stock
Index.
------------------------------------------------------------------------------------------------------------------------------
EQ/FIDELITY IB Seeks to achieve long-term capital . AXA Equitable Funds
INSTITUTIONAL appreciation. Management Group, LLC
AM(R) LARGE CAP . FIAM LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN RISING IB Seeks long-term capital appreciation. . AXA Equitable Funds
DIVIDENDS Preservation of capital, while not a goal, Management Group, LLC
is also an important consideration. . Franklin Advisers, Inc.
------------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN IB Seeks a high level of current income. A . AXA Equitable Funds
STRATEGIC INCOME secondary goal is long-term capital Management Group, LLC
appreciation. . Franklin Mutual Advisers,
LLC
------------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL BOND PLUS IA Seeks to achieve capital growth and . AXA Equitable Funds
current income. Management Group, LLC
. BlackRock Investment
Management, LLC
. Wells Fargo Asset
Management
(International) LLC and
. Wells Capital Management,
Inc.
------------------------------------------------------------------------------------------------------------------------------
|
19
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL EQUITY IA Seeks to achieve long-term capital . AXA Equitable Funds (check mark)
MANAGED appreciation with an emphasis on risk- Management Group, LLC
VOLATILITY/(*)(11)/ adjusted returns and managing volatility . BlackRock Investment
in the Portfolio. Management, LLC
. Morgan Stanley Investment
Management Inc.
. OppenheimerFunds, Inc.
---------------------------------------------------------------------------------------------------------------------------------
EQ/GOLDMAN SACHS IB Seeks to achieve long-term capital . AXA Equitable Funds
MID CAP VALUE appreciation. Management Group, LLC
. Goldman Sachs Asset
Management, L.P.
---------------------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE IA Seeks to achieve a total return before . AXA Equitable Funds
GOVERNMENT BOND expenses that approximates the total return Management Group, LLC
performance of the Bloomberg Barclays . SSgA Funds Management,
U.S. Intermediate Government Bond Index, Inc.
including reinvestment of dividends, at a
risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government Bond Index.
---------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL IA Seeks to achieve long-term growth of . AXA Equitable Funds (check mark)
CORE MANAGED capital with an emphasis on risk-adjusted Management Group, LLC
VOLATILITY/(*)(12)/ returns and managing volatility in the . BlackRock Investment
Portfolio. Management, LLC
. EARNEST Partners, LLC
. Federated Global
Investment Management
Corp.
. Massachusetts Financial
Services Company d/b/a
MFS Investment Management
---------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL IA Seeks to achieve a total return (before . AllianceBernstein L.P.
EQUITY INDEX expenses) that approximates the total . AXA Equitable Funds
return performance of a composite index Management Group, LLC
comprised of 40% DJ Euro STOXX 50
Index, 25% FTSE 100 Index, 25% TOPIX
Index, and 10% S&P/ASX 200 Index,
including reinvestment of dividends, at a
risk level consistent with that of the
composite index.
---------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL IB Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds
VOLATILITY/(*)(13)/ returns and managing volatility in the Management Group, LLC
Portfolio. . BlackRock Investment
Management, LLC
---------------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL IA Seeks to provide current income and long- . AXA Equitable Funds (check mark)
VALUE MANAGED term growth of income, accompanied by Management Group, LLC
VOLATILITY/(*)(14)/ growth of capital with an emphasis on . BlackRock Investment
risk-adjusted returns and managing Management, LLC
volatility in the Portfolio. . Harris Associates L.P.
---------------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK IA Seeks to achieve capital growth and . AXA Equitable Funds
income. Management Group, LLC
. Invesco Advisers, Inc.
---------------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO GLOBAL IB Seeks to achieve total return through . AXA Equitable Funds
REAL ESTATE growth of capital and current income. Management Group, LLC
. Invesco Advisers, Inc.
---------------------------------------------------------------------------------------------------------------------------------
|
20
ABOUT THE PORTFOLIOS OF THE TRUSTS
-------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO IB Seeks to achieve long-term growth of . AXA Equitable Funds
INTERNATIONAL capital. Management Group, LLC
GROWTH . Invesco Advisers, Inc.
-------------------------------------------------------------------------------------------------------------------------------
EQ/IVY ENERGY IB Seeks to provide capital growth and . AXA Equitable Funds
appreciation. Management Group, LLC
. Ivy Investment Management
Company
-------------------------------------------------------------------------------------------------------------------------------
EQ/IVY MID CAP IB Seeks to provide growth of capital. . AXA Equitable Funds
GROWTH Management Group, LLC
. Ivy Investment Management
Company
-------------------------------------------------------------------------------------------------------------------------------
EQ/IVY SCIENCE AND IB Seeks to provide growth of capital. . AXA Equitable Funds
TECHNOLOGY Management Group, LLC
. Ivy Investment Management
Company
-------------------------------------------------------------------------------------------------------------------------------
EQ/JANUS IA Seeks to achieve capital growth. . AXA Equitable Funds
ENTERPRISE/(*)(15)/ Management Group, LLC
. Janus Capital Management
LLC
-------------------------------------------------------------------------------------------------------------------------------
EQ/JPMORGAN VALUE IA Seeks to achieve long-term capital . AXA Equitable Funds
OPPORTUNITIES appreciation. Management Group, LLC
. J.P. Morgan Investment
Management Inc.
-------------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP CORE IA Seeks to achieve long-term growth of . AXA Equitable Funds (check mark)
MANAGED capital with an emphasis on risk-adjusted Management Group, LLC
VOLATILITY/(*)(16)/ returns and managing volatility in the . BlackRock Investment
Portfolio. Management, LLC
. Capital Guardian Trust
Company
. Thornburg Investment
Management, Inc.
. Vaughan Nelson Investment
Management
-------------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH IA Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds
return performance of the Russell 1000(R) Management Group, LLC
Growth Index, including reinvestment of
dividends at a risk level consistent with
the Russell 1000(R) Growth Index.
-------------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH IA Seeks to provide long-term capital growth . AXA Equitable Funds (check mark)
MANAGED with an emphasis on risk-adjusted returns Management Group, LLC
VOLATILITY/(*)(17)/ and managing volatility in the Portfolio. . BlackRock Investment
Management, LLC
. HS Management Partners,
LLC
. Loomis, Sayles &
Company, L.P.
. Polen Capital Management,
LLC
. T. Rowe Price Associates,
Inc.
-------------------------------------------------------------------------------------------------------------------------------
|
21
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE IA Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds
return performance of the Russell 1000(R) Management Group, LLC
Value Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 1000(R) Value Index.
----------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE IA Seeks to achieve long-term growth of . AllianceBernstein L.P.
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds
VOLATILITY/(*)(18)/ returns and managing volatility in the Management Group, LLC
Portfolio. . BlackRock Investment
Management, LLC
. Massachusetts Financial
Services Company d/b/a
MFS Investment Management
----------------------------------------------------------------------------------------------------------------------
EQ/LAZARD EMERGING IB Seeks to achieve long-term capital . AXA Equitable Funds
MARKETS EQUITY appreciation. Management Group, LLC
. Lazard Asset Management
LLC
----------------------------------------------------------------------------------------------------------------------
EQ/LOOMIS SAYLES IB Seeks to achieve capital appreciation. . AXA Equitable Funds
GROWTH/(*)(19)/ Management Group, LLC
. Loomis, Sayles & Company,
L.P.
----------------------------------------------------------------------------------------------------------------------
EQ/MFS IB Seeks to achieve capital appreciation. . AXA Equitable Funds
INTERNATIONAL Management Group, LLC
GROWTH . Massachusetts Financial
Services Company d/b/a
MFS Investment Management
----------------------------------------------------------------------------------------------------------------------
EQ/MFS(R) IB Seeks to achieve capital appreciation. . AXA Equitable Funds
INTERNATIONAL Management Group, LLC
VALUE . Massachusetts Financial
Services Company
----------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX IA Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total return . AXA Equitable Funds
performance of the Standard & Poor's Management Group, LLC
MidCap 400(R) Index, including reinvestment
of dividends, at a risk level consistent with
that of the Standard & Poor's MidCap 400(R)
Index.
----------------------------------------------------------------------------------------------------------------------
EQ/MID CAP VALUE IA Seeks to achieve long-term capital . AXA Equitable Funds
MANAGED appreciation with an emphasis on risk Management Group, LLC
VOLATILITY/(*)(20)/ adjusted returns and managing volatility . BlackRock Investment
in the Portfolio. Management, LLC
. Diamond Hill Capital
Management, Inc.
. Wellington Management
Company, LLP
----------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET/(+)/ IA Seeks to obtain a high level of current . AXA Equitable Funds
income, preserve its assets and maintain Management Group, LLC
liquidity. . The Dreyfus Corporation
----------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN IB Seeks to achieve maximum real return, . AXA Equitable Funds
consistent with preservation of capital Management Group, LLC
and prudent investment management. . Pacific Investment
Management Company LLC
----------------------------------------------------------------------------------------------------------------------
|
-----------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------
EQ/LARGE CAP VALUE . AllianceBernstein L.P.
INDEX . AXA Equitable Funds
Management Group, LLC
-----------------------------------------------------------------------
EQ/LARGE CAP VALUE . AllianceBernstein L.P. (check mark)
MANAGED . AXA Equitable Funds
VOLATILITY/(*)(18)/ Management Group, LLC
. BlackRock Investment
Management, LLC
. Massachusetts Financial
Services Company d/b/a
MFS Investment Management
-----------------------------------------------------------------------
EQ/LAZARD EMERGING . AXA Equitable Funds
MARKETS EQUITY Management Group, LLC
. Lazard Asset Management
LLC
-----------------------------------------------------------------------
EQ/LOOMIS SAYLES . AXA Equitable Funds
GROWTH/(*)(19)/ Management Group, LLC
. Loomis, Sayles & Company,
L.P.
-----------------------------------------------------------------------
EQ/MFS . AXA Equitable Funds
INTERNATIONAL Management Group, LLC
GROWTH . Massachusetts Financial
Services Company d/b/a
MFS Investment Management
-----------------------------------------------------------------------
EQ/MFS(R) . AXA Equitable Funds
INTERNATIONAL Management Group, LLC
VALUE . Massachusetts Financial
Services Company
-----------------------------------------------------------------------
EQ/MID CAP INDEX . AllianceBernstein L.P.
. AXA Equitable Funds
Management Group, LLC
-----------------------------------------------------------------------
EQ/MID CAP VALUE . AXA Equitable Funds (check mark)
MANAGED Management Group, LLC
VOLATILITY/(*)(20)/ . BlackRock Investment
Management, LLC
. Diamond Hill Capital
Management, Inc.
. Wellington Management
Company, LLP
-----------------------------------------------------------------------
EQ/MONEY MARKET/(+)/ . AXA Equitable Funds
Management Group, LLC
. The Dreyfus Corporation
-----------------------------------------------------------------------
EQ/PIMCO REAL RETURN . AXA Equitable Funds
Management Group, LLC
. Pacific Investment
Management Company LLC
-----------------------------------------------------------------------
|
22
ABOUT THE PORTFOLIOS OF THE TRUSTS
-----------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO TOTAL IB Seeks to achieve maximum total return, . AXA Equitable Funds
RETURN consistent with preservation of capital Management Group, LLC
and prudent investment management. . Pacific Investment
Management Company LLC
-----------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA IA Seeks to generate a return in excess of . AXA Equitable Funds
SHORT BOND traditional money market products while Management Group, LLC
maintaining an emphasis on preservation . Pacific Investment
of capital and liquidity. Management Company LLC
-----------------------------------------------------------------------------------------------------------------------------
EQ/QUALITY BOND PLUS IA Seeks to achieve high current income . AllianceBernstein L.P.
consistent with moderate risk to capital. . AXA Equitable Funds
Management Group, LLC
. Pacific Investment
Management Company LLC
-----------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY IA Seeks to replicate as closely as possible . AllianceBernstein L.P.
INDEX (before expenses) the total return of the . AXA Equitable Funds
Russell 2000(R) Index. Management Group, LLC
-----------------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE IA Seeks to achieve long-term capital . AXA Equitable Funds
GROWTH STOCK appreciation and secondarily, income. Management Group, LLC
. T. Rowe Price Associates,
Inc.
-----------------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND IB Seeks to achieve total return through . AXA Equitable Funds
INCOME capital appreciation with income as a Management Group, LLC
secondary consideration. . UBS Asset Management
(Americas) Inc.
-----------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER IA Seeks to achieve long-term growth of . AllianceBernstein L.P.
AGGRESSIVE EQUITY capital. . AXA Equitable Funds
Management Group, LLC
. ClearBridge Investments,
LLC
. Scotia Institutional
Asset Management US, Ltd.
. T. Rowe Price Associates,
Inc.
. Westfield Capital
Management Company, L.P.
-----------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER CORE IA Seeks to achieve a balance of high current . AXA Equitable Funds
BOND income and capital appreciation, Management Group, LLC
consistent with a prudent level of risk. . BlackRock Financial
Management, Inc.
. DoubleLine Capital LP
. Pacific Investment
Management Company LLC
. SSgA Funds Management,
Inc.
-----------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID IA Seeks to achieve long-term growth of . AllianceBernstein L.P.
CAP GROWTH capital. . AXA Equitable Funds
Management Group, LLC
. BlackRock Investment
Management, LLC
. Franklin Advisers, Inc.
. Wellington Management
Company, LLP
-----------------------------------------------------------------------------------------------------------------------------
|
23
ABOUT THE PORTFOLIOS OF THE TRUSTS
-----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST PORTFOLIO INVESTMENT ADVISER VOLATILITY
NAME SHARE CLASS OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID IA Seeks to achieve long-term growth of . American Century
CAP VALUE capital. Investment Management,
Inc.
. AXA Equitable Funds
Management Group, LLC
. BlackRock Investment
Management, LLC
. Diamond Hill Capital
Management, Inc.
-----------------------------------------------------------------------------------------------------------------------
MULTIMANAGER IA Seeks to achieve long-term growth of . AllianceBernstein L.P.
TECHNOLOGY capital. . Allianz Global Investors
U.S. LLC
. AXA Equitable Funds
Management Group, LLC
. Wellington Management
Company, LLP
|
----------------------------------------------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE FUNDS
(INVESCO VARIABLE
INSURANCE
FUNDS) -- SERIES II INVESTMENT ADVISER
PORTFOLIO NAME OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
INVESCO V.I. MID The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP CORE EQUITY capital.
FUND
----------------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP EQUITY FUND capital.
----------------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS
INSURANCE SERIES(R)
PORTFOLIO NAME -- INVESTMENT ADVISER
CLASS 4 SHARES OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
GLOBAL SMALL The fund's investment objective is to provide long-term . Capital Research and
CAPITALIZATION growth of capital. Management Company
FUND
----------------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital Research and
appreciation. Management Company
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE INSURANCE
PRODUCTS (VIP) -
SERVICE CLASS 2 INVESTMENT ADVISER
PORTFOLIO NAME OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks high total return through a combination of current . Fidelity Management &
GROWTH & INCOME income and capital appreciation. Research Company (FMR)
PORTFOLIO
----------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID Seeks long-term growth of capital. . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
----------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE
INSURANCE PRODUCTS
TRUST -- CLASS 2 INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
FRANKLIN MUTUAL Seeks capital appreciation. Its secondary goal is income. . Franklin Mutual Advisers,
SHARES VIP FUND LLC
----------------------------------------------------------------------------------------------------------------------
FRANKLIN SMALL CAP Seeks long-term total return. . Franklin Mutual Advisers,
VALUE VIP FUND LLC
----------------------------------------------------------------------------------------------------------------------
TEMPLETON Seeks long-term capital appreciation. . Templeton Asset
DEVELOPING Management Ltd.
MARKETS VIP FUND
----------------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with preservation of . Franklin Advisers, Inc.
BOND VIP FUND capital. Capital appreciation is a secondary consideration.
----------------------------------------------------------------------------------------------------------------------
TEMPLETON GROWTH Seeks long-term capital growth. . Templeton Global Advisors
VIP FUND Limited
----------------------------------------------------------------------------------------------------------------------
IVY VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
IVY VIP HIGH INCOME To seek to provide total return through a combination of . Ivy Investment Management
high current income and capital appreciation. Company (IICO)
----------------------------------------------------------------------------------------------------------------------
IVY VIP SMALL CAP To seek to provide growth of capital. . Ivy Investment Management
GROWTH Company (IICO)
----------------------------------------------------------------------------------------------------------------------
|
24
ABOUT THE PORTFOLIOS OF THE TRUSTS
--------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE TRUSTS --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS The fund's investment objective is to seek capital . Massachusetts Financial
TRUST SERIES appreciation. Services Company
--------------------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital . Massachusetts Financial
MASSACHUSETTS appreciation. Services Company
INVESTORS GROWTH
STOCK PORTFOLIO
|
----------------------------------------------------------------------------------------------------------
PIMCO VARIABLE
INSURANCE TRUST --
ADVISOR CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
PIMCO Seeks maximum real return consistent with prudent . Pacific Investment
COMMODITYREALRETURN(R) investment management. Management Company LLC
STRATEGY PORTFOLIO
|
------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE
EQUITY SERIES, INC. INVESTMENT ADVISER
PORTFOLIO NAME OBJECTIVE (AND SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------
T. ROWE PRICE Seeks a high level of dividend income and long-term . T. Rowe Price Associates,
EQUITY INCOME capital growth primarily through investments in stocks. Inc.
PORTFOLIO - II
|
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VANECK VIP TRUST --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------------------
VANECK VIP GLOBAL Seeks long-term capital appreciation by investing primarily in . Van Eck Associates
HARD ASSETS FUND hard asset securities. Income is a secondary consideration. Corporation
--------------------------------------------------------------------------------------------------------------------
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(+)The Portfolio operates as a "government money market fund." The Portfolio
will invest at least 99.5% of its total assets in U.S. government
securities, cash, and/or repurchase agreements that are fully collateralized
by U.S. government securities or cash.
(*)The chart below reflects the variable investment option's name in effect
until on or about May 20, 2019. The number in the "FN" column corresponds
with the number contained in the table above.
-------------------------------------------------
FN VARIABLE INVESTMENT OPTION NAME
-------------------------------------------------
(1) AXA Aggressive Allocation
-------------------------------------------------
(2) AXA Conservative Allocation
-------------------------------------------------
(3) AXA Conservative-Plus Allocation
-------------------------------------------------
(4) AXA Moderate Allocation
-------------------------------------------------
(5) AXA Moderate-Plus Allocation
-------------------------------------------------
(6) AXA 400 Managed Volatility
-------------------------------------------------
(7) AXA 500 Managed Volatility
-------------------------------------------------
(8) AXA 2000 Managed Volatility
-------------------------------------------------
(9) AXA/AB Small Cap Growth
-------------------------------------------------
(10) AXA/ClearBridge Large Cap Growth
-------------------------------------------------
(11) AXA Global Equity Managed Volatility
-------------------------------------------------
(12) AXA International Core Managed Volatility
-------------------------------------------------
(13) AXA International Managed Volatility
-------------------------------------------------
(14) AXA International Value Managed Volatility
-------------------------------------------------
(15) AXA/Janus Enterprise
-------------------------------------------------
(16) AXA Large Cap Core Managed Volatility
-------------------------------------------------
(17) AXA Large Cap Growth Managed Volatility
-------------------------------------------------
(18) AXA Large Cap Value Managed Volatility
-------------------------------------------------
(19) AXA/Loomis Sayles Growth
-------------------------------------------------
(20) AXA Mid Cap Value Managed Volatility
-------------------------------------------------
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YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.).
25
ABOUT THE PORTFOLIOS OF THE TRUSTS
5. Determining your policy's value
YOUR ACCOUNT VALUE
As set forth earlier in this prospectus, we deduct certain charges from each
premium payment you make. We credit the rest of each premium payment to your
policy's "account value." You instruct us to allocate your account value to one
or more of the policy's investment options indicated on the front cover of this
prospectus.
Your account value is the total of (i) your amounts in our variable investment
options, (ii) your amounts in our guaranteed interest option other than in
(iii), and (iii) any amounts that we are holding to secure policy loans that
you have taken (including any interest on those amounts which has not yet been
allocated to the variable investment options). See "Borrowing from your policy"
later in this prospectus. Your "net account value" is the total of (i) and
(ii) above, plus any interest credited on loaned amounts, minus any interest
accrued on outstanding loans and minus any "restricted" amounts that we hold in
the guaranteed interest option as a result of any payment received under a
living benefits rider. (Your policy and other supplemental material may refer
to the account that holds the amounts in (ii) and (iii) above as our
"Guaranteed Interest Account.") Your account value is subject to certain
charges discussed in "Risk/ benefit summary: Charges and expenses you will pay"
earlier in this prospectus.
YOUR POLICY ACCOUNT VALUE WILL BE CREDITED WITH THE SAME RETURNS AS ARE
ACHIEVED BY THE PORTFOLIOS THAT YOU SELECT, AND INTEREST CREDITED ON AMOUNTS IN
THE GUARANTEED INTEREST OPTION, AND IS REDUCED BY THE AMOUNT OF CHARGES WE
DEDUCT UNDER THE POLICY.
YOUR POLICY'S VALUE IN OUR VARIABLE INVESTMENT OPTIONS. We invest the account
value that you have allocated to any variable investment option in shares of
the corresponding Portfolio. Your value in each variable investment option is
measured by "units."
The number of your units in any variable investment option does not change,
absent an event or transaction under your policy that involves moving assets
into or out of that option. Whenever any amount is withdrawn or otherwise
deducted from one of your policy's variable investment options, we "redeem"
(cancel) the number of units that has a value equal to that amount. This can
happen, for example, when all or a portion of monthly deductions and
transaction-based charges are allocated to that option, or when loans,
transfers, withdrawals and surrenders are made from that option. Similarly, you
"purchase" additional units having the same value as the amount of any premium,
loan repayment, or transfer that you allocate to that option.
The value of each unit will increase or decrease each business day, as though
you had invested in the corresponding Portfolio's shares directly (and
reinvested all dividends and distributions from the Portfolio in additional
Portfolio shares). On any day, your value in any variable investment option
equals the number of units credited to your policy under that option,
multiplied by that day's value for one such unit. The mortality and expense
risk charge mentioned earlier in this prospectus is calculated as a percentage
of the value you have in the variable investment options and deducted monthly
from your policy account based on your deduction allocations.
YOUR POLICY'S VALUE IN OUR GUARANTEED INTEREST OPTION. Your policy's value in
our guaranteed interest option includes: (i) any amounts that have been
allocated to that option, based on your request, and (ii) any "restricted"
amounts that we hold in that option as a result of your election to receive a
living benefit. See "Your option to receive a terminal illness living benefit"
later in this prospectus. We credit all of such amounts with interest at rates
we declare from time to time. We guarantee that these rates will not be less
than a 3% effective annual rate.
Amounts may be allocated to or removed from your policy's value in our
guaranteed interest option for the same purposes as described earlier in this
prospectus for the variable investment options. We credit your policy with a
number of dollars in that option that equals any amount that is being allocated
to it. Similarly, if amounts are being removed from your guaranteed interest
option for any reason, we reduce the amount you have credited to that option on
a dollar-for-dollar basis.
26
DETERMINING YOUR POLICY'S VALUE
6. Transferring your money among our investment options
TRANSFERS YOU CAN MAKE
YOU CAN TRANSFER AMONG OUR VARIABLE INVESTMENT OPTIONS AND INTO OUR GUARANTEED
INTEREST OPTION.
After your policy's Allocation Date, you can transfer amounts from one
investment option to another. There are no restrictions on transfers into the
guaranteed interest option. However, transfers out of the guaranteed interest
option and among our variable investment options are more limited. Currently,
the total of all transfers you make on the same day must be at least $500;
except that you may transfer your entire balance in an investment option, even
if it is less than $500. We reserve the right to lower this $500 limit upon
written notice to you. We also reserve the right to restrict transfers among
variable investment options and transfers out of the guaranteed interest option
as described in your policy, including limitations on the number, frequency, or
dollar amount of transfers.
Please see "Investment options within your policy" in "Risk/benefit summary:
Policy features, benefits and risks" for more information about your role in
managing your allocations.
CURRENT UNRESTRICTED TRANSFERS OUT OF THE GUARANTEED INTEREST OPTION. We are
relaxing our policy rules so that, beginning on the business day after the
Allocation Date and thereafter, you may transfer any amount of unloaned policy
account value out of the guaranteed interest option to any other investment
option until further notice. If we decide to change our limitations on
transfers out of the guaranteed interest option, we will provide you with
notice of at least 30 days.
See the "How to make transfers" section below on how you can request a
transfer. In general, transfers take effect on the date the request is
received. However, any written, telephone, Internet or facsimile transaction
requests received after 4:00 p.m. (Eastern Time) take effect the next business
day.
Please note that the ability to make unrestricted transfers from the guaranteed
interest option does not apply to any amounts that we are holding as collateral
for a policy loan or as "restricted" amounts as a result of your election to
receive a living benefit, if available under your policy. Finally, there may be
a charge for making this transfer. Please see "Risk/benefit summary: Charges
and expenses you will pay" earlier in this prospectus for more information
about charges for this transfer.
DISRUPTIVE TRANSFER ACTIVITY. We reserve the right to limit access to the
services described below if we determine that you are engaged in a disruptive
transfer activity, such as "market timing" (see "Disruptive transfer activity"
in "More information about other matters").
HOW TO MAKE TRANSFERS
INTERNET TRANSFERS. Generally, you can make transfers over the Internet if you
are the owner of the policy. You may do this by visiting our axa.com or
us.axa.com (for those outside the U.S.) websites and registering for online
account access. This service may not always be available. The restrictions
relating to online transfers are described below.
ONLINE TRANSFERS. You can make online transfers by following one of two
procedures:
. For individually owned policies for which you are the owner, by logging
onto our website, described under "By Internet" in "How to reach us"
earlier in this prospectus; or
. For corporation and trust owned policies, we require a special
authorization form to obtain access. The form is available on our website
www.axa.us.com or us.axa.com for those outside the U.S., or by contacting
our Administrative Office.
For more information, see "Telephone and Internet requests" later in this
prospectus. We allow only one request for transfers each day (although that
request can cover multiple transfers). If you are unable to reach us via our
website, you should send a written transfer request to our Administrative
Office.
TRANSFERS THROUGH OUR ADMINISTRATIVE OFFICE. You may submit a written request
for a transfer to our Administrative Office. We require a written request for
jointly owned policies.
OUR AUTOMATIC TRANSFER SERVICE
We offer an automatic transfer service. This service allows you to gradually
allocate amounts to the variable investment options by periodically
transferring approximately the same dollar amount to the variable investment
options you select. This will cause you to purchase more units if the unit's
value is low, and fewer units if the unit's value is high. Therefore, you may
achieve a lower average cost per unit over the long term.
USING THE AUTOMATIC TRANSFER SERVICE DOES NOT GUARANTEE THAT YOU WILL EARN A
PROFIT OR BE PROTECTED AGAINST LOSSES.
Our automatic transfer service (also referred to as our "dollar cost averaging
service") enables you to make automatic monthly transfers from the EQ/Money
Market option to our other variable investment options. You may elect the
automatic transfer service with your policy application or at any later time
(provided you are not using the asset rebalancing service described below). At
least $5,000 must be allocated to the EQ/Money Market option to begin using the
automatic transfer service. You can choose up to eight other variable
investment options to receive the automatic transfers, but each transfer to
each option must be at least $50.
This service terminates when the EQ/Money Market option is depleted. You can
also cancel the automatic transfer service at any time by sending a written
request to our Administrative Office. You may not simultaneously participate in
the asset rebalancing service and the automatic transfer service.
We will not deduct a transfer charge for any transfer made in connection with
our automatic transfer service.
OUR ASSET REBALANCING SERVICE
You may wish us to periodically redistribute the amounts you have in our
variable investment options so that the relative amount of your
27
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
account value in each variable option is restored to an asset allocation that
you select. You can accomplish this automatically through our asset rebalancing
service. The rebalancing may be at quarterly, semiannual, or annual intervals.
You may specify asset allocation percentages for all available variable
investment options up to a maximum of 50. The allocation percentage you specify
for each variable investment option selected must be at least 2% (whole
percentages only) of the total value you hold under the variable investment
options, and the sum of the percentages must equal 100%. You may not
simultaneously participate in the asset rebalancing service and the automatic
transfer service (discussed above).
You may request the asset rebalancing service in your policy application or at
any later time by completing our enrollment form. At any time, you may also
terminate the rebalancing program or make changes to your allocations under the
program. Once enrolled in the rebalancing service, it will remain in effect
until you instruct us in writing to terminate the service. Requesting an
investment option transfer while enrolled in our asset rebalancing service will
not automatically change your allocation instructions for rebalancing your
account value. This means that upon the next scheduled rebalancing, we will
transfer amounts among your investment options pursuant to the allocation
instructions previously on file for your rebalancing service. Changes to your
allocation instructions for the rebalancing service (or termination of your
enrollment in the service) must be in writing and sent to our Administrative
Office.
We will not deduct a transfer charge for any transfer made in connection with
our asset rebalancing service. The guaranteed interest option is not an
available investment option with the asset rebalancing service.
28
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
7. Accessing your money
BORROWING FROM YOUR POLICY
You may borrow up to 90% of the difference between your policy's account value
and any surrender charges that are in effect under your policy. (In your
policy, this "difference" is referred to as your Cash Surrender Value.)
However, the amount you can borrow will be reduced by any amount that we hold
on a "restricted" basis following your receipt of a terminal illness living
benefits payment, as well as by any other loans (and accrued loan interest) you
have outstanding. See "Your option to receive a terminal illness living
benefit" below.
YOU CAN USE POLICY LOANS TO OBTAIN FUNDS FROM YOUR POLICY WITHOUT SURRENDER
CHARGES OR, IN MOST CASES, PAYING CURRENT INCOME TAXES. HOWEVER, THE BORROWED
AMOUNT IS NO LONGER CREDITED WITH THE INVESTMENT RESULTS OF ANY OF OUR
INVESTMENT OPTIONS UNDER THE POLICY.
When you take a policy loan, we remove an amount equal to the loan from one or
more of your investment options and hold it as collateral for the loan's
repayment. We hold this loan collateral under the same terms and conditions as
apply to amounts supporting our guaranteed interest option, with several
exceptions:
. you cannot make transfers or withdrawals of the collateral;
. we expect to credit different rates of interest to loan collateral than we
credit under our guaranteed interest option; and
. the collateral is not available to pay policy charges.
When you request your loan, you should tell us how much of the loan collateral
you wish to have taken from any amounts you have in each of our investment
options. If you do not give us directions (or if we are making the loan
automatically to cover unpaid loan interest), we will take the loan from your
investment options in the same proportion as we are then taking monthly
deductions for charges. If that is not possible, we will take the loan from
your investment options in proportion to your value in each.
LOAN INTEREST we charge. The interest we charge on a policy loan accrues daily
at an adjustable interest rate. We determine the rate at the beginning of each
year of your policy and that rate applies to all policy loans that are
outstanding at any time during the year. The maximum rate is the greater of
(a) 4% or (b) the "Monthly Average Corporate" yield published in Moody's
Corporate Bond Yield Averages for the month that ends two months before the
interest rate is set. (If that average is no longer published, we will use
another average, as the policy provides.) We will notify you of the current
loan interest rate when you apply for a loan and annually on the annual report,
and will notify you in advance of any rate increase.
Loan interest payments are due on each policy anniversary. If not paid when
due, we automatically add the interest as a new policy loan.
INTEREST THAT WE CREDIT ON LOAN COLLATERAL. Under our current rules, the annual
interest rate we credit on your loan collateral during any of your policy's
first fifteen years will be 1% less than the rate we are then charging you for
policy loan interest, and, beginning in the policy's 16th year, equal to the
loan interest rate. The elimination of the rate differential is not guaranteed,
however. Accordingly, we have discretion to increase the rate differential for
any period, including under policies that are already in force (and may have
outstanding loans). We do guarantee that the annual rate of interest credited
on your loan collateral will never be less than 3% and that the differential
will not exceed 2% (except if tax law changes increase the taxes we pay on
policy loans or loan interest).
We credit interest on your loan collateral daily. On each anniversary of your
policy (or when your policy loans are fully repaid) we transfer that interest
to your policy's investment options in the same proportions as if it were a
premium payment.
EFFECTS OF POLICY LOANS. A loan can reduce the length of time that your
insurance remains in force, because the amount we set aside as loan collateral
cannot be used to pay charges as they become due. A loan can also cause any
paid up death benefit guarantee to terminate or may cause any other guarantee
against lapse to become unavailable. We will deduct any outstanding policy loan
plus accrued loan interest from your policy's proceeds if you do not pay it
back. Even if a loan is not taxable when made, it may later become taxable, for
example, upon termination or surrender. See "Tax information" below for a
discussion of the tax consequences of policy loans.
PAYING OFF YOUR LOAN. You can repay all or part of your loan at any time. We
normally assume that payments you send us are premium payments. Therefore, you
must submit instructions with your payment indicating that it is a loan
repayment. If you send us more than all of the loan principal and interest you
owe, we will treat the excess as a premium payment.
When you send us a loan repayment, we will transfer an amount equal to such
repayment from your loan collateral back to the investment options under your
policy. First we will restore any amounts that, before being designated as loan
collateral, had been in the guaranteed interest option under your policy. We
will allocate any additional repayments among the investment options as you
instruct; or, if you don't instruct us, in the same proportion as if they were
premium payments.
MAKING WITHDRAWALS FROM YOUR POLICY
You may make a partial withdrawal of your net cash surrender value (defined
below) at any time after the first year of your policy and before the policy
anniversary nearest to the insured's 100th birthday. The request must be for at
least $500, however, and we have discretion to decline any request. If you do
not tell us from which investment options you wish us to take the withdrawal,
we will use the same allocation that then applies for the monthly deductions we
make for charges; and, if that is not possible, we will take the withdrawal
from all of your investment options in proportion to your value in each.
YOU CAN WITHDRAW ALL OR PART OF YOUR POLICY'S NET CASH SURRENDER VALUE,
ALTHOUGH YOU MAY INCUR TAX CONSEQUENCES BY DOING SO.
29
ACCESSING YOUR MONEY
EFFECT OF PARTIAL WITHDRAWALS ON INSURANCE COVERAGE. If the Option A death
benefit is in effect, a partial withdrawal results in a dollar-for-dollar
automatic reduction in the policy's face amount (and, hence, an equal reduction
in the Option A death benefit). If the paid up death benefit guarantee is in
effect, a partial withdrawal will generally reduce the face amount by more than
the amount of the withdrawal. Face amount reductions that occur automatically
as a result of withdrawals, however, do not result in our deducting any portion
of any then remaining surrender charge. We will not permit a partial withdrawal
that would reduce the face amount below our minimum for new policy issuances at
the time, or that would cause the policy to no longer be treated as life
insurance for federal income tax purposes.
If death benefit Option B is in effect, a partial withdrawal reduces the death
benefit on a dollar for dollar basis, but does not affect the face amount.
The result is different, however, during any time when the alternative death
benefit (discussed later in this prospectus) would be higher than the Option A
or B death benefit you have selected. In that case, a partial withdrawal will
cause the death benefit to decrease by more than the amount of the withdrawal,
even if the paid up death benefit guarantee is not then in effect. A partial
withdrawal reduces the amount of your premium payments that counts toward
maintaining our other guarantees against termination, as well. A partial
withdrawal may increase the chance that your policy could lapse because of
insufficient value to pay policy charges as they fall due or because it could
result in a no-lapse guarantee not being in effect.
You should refer to "Tax information" below, for information about possible tax
consequences of partial withdrawals and any associated reduction in policy
benefits.
SURRENDERING YOUR POLICY FOR ITS NET CASH SURRENDER VALUE
Upon written request satisfactory to us, you can surrender (give us back) your
policy for its "net cash surrender value" at any time. The net cash surrender
value equals your account value, minus any outstanding loans and unpaid loan
interest, minus any amount of your account value that is "restricted" as a
result of previously distributed "living benefits," and minus any surrender
charge that then remains applicable. The surrender charge is described in
"Charges and expenses you will pay" earlier in this prospectus.
Please refer to "Tax information" below for the possible tax consequences of
surrendering your policy.
YOUR OPTION TO RECEIVE A TERMINAL ILLNESS LIVING BENEFIT
Subject to our insurance underwriting guidelines and availability in your
state, your policy will automatically include our living benefits rider. This
feature enables you to receive a portion (generally the lesser of 75% or
$500,000) of the policy's death benefit (excluding death benefits payable under
certain other policy riders), if the insured person has a terminal illness (as
defined in the rider). The maximum aggregate amount of payments that will be
paid under this Living Benefits Rider for all policies issued by AXA Equitable
or an affiliate company on the life of the same insured person is $500,000. We
make no additional charge for the rider, but we will deduct a one-time
administrative charge of up to $250 from any living benefit we pay.
If you tell us that you do not wish to have the living benefits rider added at
issue, but you later ask to add it, there will be a $100 administrative charge.
Also, we will need to evaluate the insurance risk at that time, and we may
decline to issue the rider.
If you receive a living benefit, the remaining benefits under your policy will
be affected. We will deduct the amount of any living benefit we have paid, plus
interest (as specified in the rider), from the death benefit proceeds that
become payable under the policy if and when the insured person dies. (In your
policy we refer to this as a "lien" we establish against your policy.)
When we pay a living benefit, we automatically transfer a pro rata portion of
your policy's net cash surrender value to the policy's guaranteed interest
option. This amount, together with the interest we charge thereon, will be
"restricted"-- that is, it will not be available for any loans, transfers or
partial withdrawals that you may wish to make. In addition, it may not be used
to satisfy the charges we deduct from your policy's value. We also will deduct
these restricted amounts from any subsequent surrender proceeds that we pay.
The receipt of a living benefits payment may qualify for exclusion from income
tax. See "Tax information" below. Receipt of a living benefits payment may
affect your eligibility for certain government benefits or entitlements.
YOU CAN ARRANGE TO RECEIVE A "LIVING BENEFIT" IF THE INSURED PERSON BECOMES
TERMINALLY ILL.
30
ACCESSING YOUR MONEY
8. Tax information
This discussion is based on current federal income tax law and interpretations.
It assumes that the policy owner is a natural person who is a U.S. citizen and
resident and has an insurable interest in the insured. The tax effects on
corporate taxpayers, non-U.S. residents or non-U.S. citizens may be different.
This discussion is general in nature, and should not be considered tax advice,
for which you should consult a qualified tax advisor.
BASIC INCOME TAX TREATMENT FOR YOU AND YOUR BENEFICIARY
An Incentive Life(R) '02 policy will be treated as "life insurance" for federal
income tax purposes (a) if it meets the definition of life insurance under
Section 7702 of the Internal Revenue Code (the "Code") and (b) as long as the
investments made by the underlying Portfolios satisfy certain investment
diversification requirements under Section 817(h) of the Code. The following
discussion assumes that the policies meet these requirements and, therefore,
that generally:
. the death benefit received by the beneficiary under your policy will not be
subject to federal income tax; and
. increases in your policy's account value as a result of interest or
investment experience will not be subject to federal income tax, unless and
until there is a distribution from your policy, such as a surrender, a
partial withdrawal, loan or a payment to you.
The IRS, however, could disagree with our position such that certain tax
consequences could be other than as described. If it is subsequently determined
that a policy does not satisfy the applicable requirements, we may take
appropriate steps to bring the policy into compliance with such requirements
and we reserve the right to restrict policy transactions in order to do so.
There may also be different tax consequences if you assign your policy,
transfer an interest therein or designate a new owner. See "Assigning your
policy" later in this prospectus. See also special rules below for "Business
and employer owned policies," and for the discussion of insurable interest
under "Other information."
TAX TREATMENT OF DISTRIBUTIONS TO YOU (LOANS, PARTIAL WITHDRAWALS, AND FULL
SURRENDER)
The federal income tax consequences of a distribution from your policy depend
on whether your policy is a "modified endowment contract" (sometimes also
referred to as a "MEC"). In all cases, however, the character of any income
described below as being taxable to the recipient will be ordinary income (as
opposed to capital gain).
TESTING FOR MODIFIED ENDOWMENT CONTRACT STATUS. Your policy will be a "modified
endowment contract" if, at any time during the first seven years of your
policy, you have paid a cumulative amount of premiums that exceeds the
cumulative seven-pay limit. The cumulative seven-pay limit is the amount of
premiums that you would have paid by that time under a similar fixed-benefit
insurance policy that
was designed (based on certain assumptions mandated under the Code) to provide
for paid up future benefits after the payment of seven equal annual premiums.
("Paid up" means that no future premiums would be required.) This is called the
"seven-pay" test.
Whenever there is a "material change" under a policy, the policy will generally
be (a) treated as a new contract for purposes of determining whether the policy
is a modified endowment contract and (b) subjected to a new seven-pay period
and a new seven-pay limit. The new seven-pay limit would be determined taking
into account, under a prescribed formula, the account value of the policy at
the time of such change. A materially changed policy would be considered a
modified endowment contract if it failed to satisfy the new seven-pay limit at
any time during the new seven-pay period. A material change for these purposes
could occur as a result of a change in death benefit option, or selection of
additional rider benefits or certain other changes.
If your policy's benefits are reduced during its first seven years (or within
seven years after a material change), the seven-pay limit will be redetermined
based on the reduced level of benefits and applied retroactively for purposes
of the seven-pay test. (Such a reduction in benefits could include, for
example, a requested decrease in face amount, the termination of additional
benefits under a rider or, in some cases, a partial withdrawal.) If the
premiums previously paid during its first seven years (or within seven years
after a material change) are greater than the recalculated (lower) seven-pay
limit, the policy will become a modified endowment contract.
A life insurance policy that you receive in exchange for a modified endowment
contract will also be considered a modified endowment contract.
In addition to the above premium limits for testing for modified endowment
status, federal income tax rules must be complied with in order for it to
qualify as life insurance. Changes made to your policy, for example, a decrease
in face amount (including any decrease that may occur as a result of a partial
withdrawal), a change in death benefit option, or other decrease in benefits
may impact the maximum amount of premiums that can be paid, as well as the
maximum amount of account value that may be maintained under the policy. In
some cases, this may cause us to take current or future action in order to
assure that your policy continues to qualify as life insurance, including
distribution of amounts to you that may be includible as income. See "Changes
we can make" later in this prospectus.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT
CONTRACT. As long as your policy remains in force as a non-modified endowment
contract, policy loans will generally be treated as indebtedness, and no part
of the loan proceeds will be subject to current federal income tax. Interest on
the loan will generally not be tax deductible, although interest credited on
loan collateral may become taxable under the rules below if distributed.
However, there is some uncertainty as to the federal tax treatment of policy
loans with a small or no spread between the interest rate charged and the
interest rate credited on the amount loaned. You should consult a qualified tax
31
TAX INFORMATION
adviser as to the federal tax treatment of such loans. Also, see below for
taxation of loans upon surrender or termination of your policy.
If you make a partial withdrawal after the first 15 years of your policy, the
proceeds will not be subject to federal income tax except to the extent such
proceeds exceed your "basis" in your policy. (Your basis generally will equal
the premiums you have paid, less the amount of any previous distributions from
your policy that were not taxable.) During the first 15 years, however, the
proceeds from a partial withdrawal could be subject to federal income tax,
under a complex formula, to the extent that your account value exceeds your
basis.
Upon full surrender, any amount by which the proceeds we pay (including amounts
we use to discharge any policy loan and unpaid loan interest) exceed your basis
in the policy will be subject to federal income tax. IN ADDITION, IF A POLICY
TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN-OUTSTANDING
POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A DISTRIBUTION AND
COULD BE SUBJECT TO TAX UNDER THE FOREGOING RULES. Finally, if you make an
assignment of rights or benefits under your policy, you may be deemed to have
received a distribution from your policy, all or part of which may be taxable.
POLICY LOANS. Policy loans can cause taxable income upon the termination of a
policy with no cash payout. In the case of a surrender, the loan amount is
taken into account in determining any taxable amount and such income can also
exceed the payment received. These events can occur from potential situations
which include: (1) amount of outstanding policy debt (loans taken plus unpaid
interest amounts added to the outstanding loan) at or near the maximum loan
value; (2) unfavorable investment results affecting your policy account value;
(3) increasing monthly policy charges due to increasing attained ages of the
insured; (4) high or increasing amount of insurance risk, depending on death
benefit option and changing account value; and (5) increasing policy loan rates
if an adjustable policy loan rate is in effect.
Ideally a policy loan will be paid from income tax free death benefit proceeds
if your policy is kept in force until the death of the insured. To avoid policy
terminations that may give rise to significant income tax liability, you may
need to make substantial premium payments or loan repayments to keep your
policy in force.
You can reduce the likelihood that these situations will occur by considering
these risks before taking a policy loan. If you take a policy loan, you should
monitor the status of your policy with your financial representative and your
tax advisor at least annually, and take appropriate preventative action. As
indicated above, in the case of a policy that is a modified endowment contract
("MEC"), any loan will be treated as a distribution when made, and thus may be
taxable at such time.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS A MODIFIED ENDOWMENT
CONTRACT. Any distribution from your policy will be taxed on an "income-first"
basis if your policy is a modified endowment contract. Distributions for this
purpose include a loan (including any increase in the loan amount to pay
interest on an existing loan or an assignment or a pledge to secure a loan) or
withdrawal. Any such distributions will be considered taxable income to you to
the extent your account value exceeds your basis in the policy. (For modified
endowment contracts, your basis is similar to the basis described above for
other policies, except that it also would be increased by the amount of any
prior loan under your policy that was considered taxable income to you.)
For purposes of determining the taxable portion of any distribution, all
modified endowment contracts issued by AXA Equitable (or its affiliates) to the
same owner (excluding certain qualified plans) during any calendar year are
treated as if they were a single contract.
A 10% penalty tax also will apply to the taxable portion of most distributions
from a policy that is a modified endowment contract. The penalty tax will not,
however, apply to (i) taxpayers whose actual age is at least 59 1/2,
(ii) distributions in the case of a disability (as defined in the Code) or
(iii) distributions received as part of a series of substantially equal
periodic annuity payments for the life (or life expectancy) of the taxpayer or
the joint lives (or joint life expectancies) of the taxpayer and his or her
beneficiary. The exceptions generally do not apply to life insurance policies
owned by corporations or other entities.
IF YOUR POLICY TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN
OUTSTANDING POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A
DISTRIBUTION (to the extent the loan was not previously treated as such) and
could be subject to tax, including the 10% penalty tax, as described above. In
addition, upon a full surrender, any excess of the proceeds we pay (including
any amounts we use to discharge any loan) over your basis in the policy, will
be subject to federal income tax and, unless an exception applies, the 10%
penalty tax.
Distributions that occur during a year of your policy in which it becomes a
modified endowment contract, and during any subsequent years, will be taxed as
described in the four preceding paragraphs. In addition, distributions from a
policy within two years before it becomes a modified endowment contract also
will be subject to tax in this manner. This means that a distribution made from
a policy that is not a modified endowment contract could later become taxable
as a distribution from a modified endowment contract. So, for example, if a
policy has been collaterally assigned as security for a loan and the policy
subsequently becomes a MEC there could be a taxable deemed distribution even
though the policy owner has not received any payment from us.
POLICY CHANGES. Changes made to a life insurance policy, for example, a
decrease in benefits, a death benefit option change, or the termination or
restoration of a terminated policy, may have other effects on your policy,
including impacting the maximum amount of premiums that can be paid under the
policy. In some cases, this may cause us to take action in order to assure your
policy continues to qualify as life insurance, including distribution of
amounts that may be includable as income. This action may be required under the
tax law even though the policy may not be sufficiently funded to keep it in
force for a desired duration. In some cases, premium payments for a policy year
could be limited to the amount needed to keep the policy in force until the end
of the policy year. You should carefully go over the implications of any policy
changes with your advisor before making a change.
RESTORATION OF A TERMINATED POLICY. For tax purposes, some restorations of a
policy that terminated after a grace period may be treated as the purchase of a
new policy. Since tax laws and regulations and their application may have
changed by such time, there can be no assurance that we can reinstate the
policy to qualify as life insurance under future tax rules.
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TAX INFORMATION
TAX TREATMENT OF LIVING BENEFITS PROCEEDS
Amounts received under an insurance policy on the life of an individual who is
terminally ill, as defined by the tax law, are generally excludable from the
payee's gross income as an accelerated death benefit. We believe that the
benefits provided under our living benefits rider meet the tax law's definition
of terminally ill and can qualify for this income tax exclusion. This exclusion
does not apply to amounts paid to someone other than the insured person,
however, if the payee has an insurable interest in the insured person's life
only because the insured person is a director, officer or employee of the payee
or by reason of the insured person being financially interested in any trade or
business carried on by the payee.
BUSINESS AND EMPLOYER OWNED POLICIES
Any employer owned life insurance arrangement on an employee or director as
well as any corporate, trade, or business use of a policy should be carefully
reviewed by your tax advisor with attention to the rules discussed below. Also,
careful consideration should be given to any other rules that may apply,
including other possible pending or recently enacted legislative proposals.
REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS. Federal tax law imposes
additional requirements for employer owned life insurance policies. The
provisions can have broad application for contract owners engaged in a trade or
business, or certain related persons. These requirements include detailed
notice and consent rules, annual tax reporting and recordkeeping requirements
on the employer and limitations on those employees (including directors) who
can be insured under the life insurance policy. Failure to satisfy applicable
requirements will result in death benefits in excess of premiums paid by the
owner being includible in the owner's income upon the death of the insured
employee. Notice and consent requirements must be satisfied before the issuance
of the life insurance policy or a material change to an existing life insurance
policy otherwise, benefits may lose their tax favored treatment.
The rules generally apply to life insurance policies issued after August 17,
2006. Note, however, that material increases in the death benefit or other
material changes will generally cause an existing policy to be treated as a new
policy and thus subject to the new requirements. The term "material" has not
yet been fully defined but is expected to not include automatic increases in
death benefits in order to maintain compliance with the life insurance policy
tax qualification rules under the Code. An exception for certain tax-free
exchanges of life insurance policies pursuant to Section 1035 of the Code may
be available but is not clearly defined.
LIMITATIONS ON INTEREST DEDUCTIBILITY FOR BUSINESS OWNED LIFE
INSURANCE. Ownership of a policy by a trade or business can limit the amount of
any interest on business borrowings that the entity otherwise could deduct for
federal income tax purposes, even though such business borrowings may be
unrelated to the policy. To avoid the limit, the insured person must be an
officer, director, employee or 20% owner of the trade or business entity when
coverage on that person commences.
The limit does not generally apply for policies owned by natural persons (even
if those persons are conducting a trade or business as sole proprietorships),
unless a trade or business entity that is not a sole proprietorship is a direct
or indirect beneficiary under the policy. Entities commonly have such a
beneficial interest, for example, in so-called "split-dollar" arrangements. If
the trade or business entity has such an interest in a policy, it will be
treated the same as if it owned the policy for purposes of the limit on
deducting interest on unrelated business income.
The limit generally applies only to policies issued after June 8, 1997 in
taxable years ending after such date. However, for this purpose, any material
change in a policy will be treated as the issuance of a new policy.
In cases where the above-discussed limit on deductibility applies, the
non-deductible portion of unrelated interest on business loans is determined by
multiplying the total amount of such interest by a fraction. The numerator of
the fraction is the policy's average account value (excluding amounts we are
holding to secure any policy loans) for the year in question, and the
denominator is the average for the year of the aggregate tax bases of all the
entity's other assets. The above limitation is in addition to rules limiting
interest deductions on policy loans against business-owned life insurance.
Special rules apply to insurance company owners of policies which may be more
restrictive.
USES OF POLICY WHICH MAY BE SCRUTINIZED. The IRS may view certain uses of life
insurance policies as a tax shelter or as an abusive transaction. Please
consult your tax advisor for the most up-to-date information as to IRS
"Recognized Abusive and Listed Transactions" and how they may affect your
policy.
REQUIREMENT THAT WE DIVERSIFY INVESTMENTS
Under Section 817(h) of the Code, the Treasury Department has issued
regulations that implement investment diversification requirements. Failure to
comply with these regulations would disqualify your policy as a life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to federal income tax on any income and gains under the policy and the
death benefit proceeds would lose their income tax-free status. These
consequences would continue for the period of the disqualification and for
subsequent periods. Through the Portfolios, we intend to comply with the
applicable diversification requirements, though no assurances can be given in
this regard.
ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
If the policy's owner is the insured person, the death benefit will generally
be includable in the owner's estate for purposes of federal estate tax. If the
owner is not the insured person, and the owner dies before the insured person,
the value of the policy would be includable in the owner's estate. If the owner
is neither the insured person nor the beneficiary, the owner will be considered
to have made a gift to the beneficiary of the death benefit proceeds when they
become payable.
In general, a person will not owe estate or gift taxes until gifts made by such
person, plus that person's taxable estate, total at least $10 million (this
statutory amount is to be indexed for inflation after 2010). A portability rule
generally permits a surviving spouse to elect to carry over the unused portion
of the deceased spouse's exclusion amount.
Certain amounts may be deductible or excludable, such as gifts and bequests to
a person's spouse or charitable institutions, as well as for certain gifts per
recipient per year ($15,000 for 2019, indexed for inflation).
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TAX INFORMATION
As a general rule, if you make a "transfer" to a person two or more generations
younger than you, a generation-skipping tax may be payable. Generation-skipping
transactions would include, for example, a case where a grandparent "skips" his
or her children and names his or her grandchildren as a policy's beneficiaries.
In that case, the generation-skipping "transfer" would be deemed to occur when
the insurance proceeds are paid. The generation-skipping tax rates are similar
to the maximum estate tax rates in effect at the time. Individuals are
generally allowed an aggregate generation-skipping tax exemption of the same
amount discussed above for estate and gift taxes, but without portability.
The particular situation of each policy owner, insured person or beneficiary
will determine how ownership or receipt of policy proceeds will be treated for
purposes of federal estate, gift and generation-skipping taxes, as well as
state and local estate, inheritance and other taxes. Because these rules are
complex, you should consult with a qualified tax adviser for specific
information, especially where benefits are passing to younger generations.
If this policy is used with estate and gift tax planning in mind, you should
consult with your tax advisor as to the most up-to-date information as to
federal estate, gift and generation skipping tax rules.
PENSION AND PROFIT-SHARING PLANS
There are special limits on the amount of insurance that may be purchased by a
trust or other entity that forms part of a pension or profit-sharing plan
qualified under Section 401(a) or 403 of the Code. In addition, the federal
income tax consequences will be different from those described in this
prospectus. These rules are complex, and you should consult a qualified tax
advisor.
SPLIT-DOLLAR AND OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may also apply when a policy is held by an employer or a trust,
or acquired by an employee, in connection with the provision of other employee
benefits. Employees may have imputed income for the value of any economic
benefit provided by the employer. There may be other tax implications, as well.
It is possible that certain split-dollar arrangements may be considered to be a
form of deferred compensation under Section 409A of the Code, which broadens
the definition of deferred compensation plans, and subjects such plans to new
requirements. Further, certain split-dollar arrangements may come within the
rules for business- and employer-owned policies. Among other issues, policy
owners must consider whether the policy was applied for by or issued to a
person having an insurable interest under applicable state law and with the
insured person's consent. The lack of an insurable interest or consent may,
among other things, affect the qualification of the policy as life insurance
for federal income tax purposes and the right of the beneficiary to receive a
death benefit.
If this policy is being or was purchased pursuant to a split-dollar
arrangement, you should also consult your tax advisor for advice concerning the
effect of the following guidance. In 2002 the IRS issued Notice 2002-8
concerning the taxation of split-dollar life insurance arrangements as well as
regulations in both 2002 and 2003. They provide for taxation under one of two
mutually exclusive regimes depending upon the structure of the arrangement.
These are a loan regime and an economic benefit regime. Transition and
grandfathering rules, among other items, should be carefully reviewed when
considering such arrangements. A material modification to an existing
arrangement may result in a change in tax treatment. In addition, public
corporations (generally publicly-traded or publicly-reporting companies) and
their subsidiaries should consider the possible implications on split-dollar
arrangements of the Securities Exchange Act of 1934 which generally prohibit
certain direct or indirect loans to executive officers or directors. At least
some split-dollar arrangements could be deemed to involve loans within the
purview of that section.
ERISA
Employers and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement Income Security Act of
1974. There may also be other implications. You should consult a qualified
legal advisor.
3.8% TAX ON NET INVESTMENT INCOME OR "NII"
The 3.8% Medicare tax on certain unearned income of taxpayers whose adjusted
incomes exceed certain thresholds applies to all or part of a taxpayer's NII.
As currently interpreted under IRS guidelines, NII includes the taxable portion
of an annuitized payment from a life insurance contract. It has not been
defined to include taxable amounts from partial withdrawals, surrenders or
lapses of life insurance policies subject to loans. You should consult your tax
advisor as to the applicability of this tax to you.
OUR TAXES
The operations of our separate accounts are reported in our federal income tax
return. Separate account investment income and capital gains, however, are, for
tax purposes, reflected in our variable life insurance policy reserves.
Currently we pay no taxes on such income and gains and impose no charge for
such taxes. We reserve the right to impose a charge in the future for taxes
incurred by us that are allocable to the policies.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate accounts. These tax benefits, which
may include the foreign tax credit and the corporate dividends received
deduction, are not passed back to you, since we are the owner of the assets
from which tax benefits may be derived.
TAX WITHHOLDING AND INFORMATION REPORTING
STATUS FOR INCOME TAX PURPOSES; FATCA. In order for us to comply with income
tax withholding and information reporting rules which may apply to life
insurance policies, we request documentation of "status" for tax purposes.
"Status" for tax purposes generally means whether a person is a "U S. person"
or a foreign person with respect to the United States; whether a person is an
individual or an entity, and if an entity, the type of entity. Status for tax
purposes is best documented on the appropriate IRS Form or substitute
certification form (IRS Form W-9 for a U.S. person or the appropriate type of
IRS Form W-8 for a foreign person). If we do not have appropriate certification
or documentation of a person's status for tax purposes on file, it could affect
the rate at which we are required to withhold income tax, and penalties could
apply. Information reporting rules could apply not only to specified
transactions, but also to life insurance policy ownership. For example, under
the Foreign Account Tax Compliance Act ("FATCA"), which applies to certain
U.S.-source payments, and similar or related withholding and information
34
TAX INFORMATION
reporting rules, we may be required to report policy values and other
information for certain policyholders. For this reason, we and our affiliates
intend to require appropriate status documentation at purchase, change of
ownership, and affected payment transactions, including death benefit payments.
FATCA and its related guidance is extraordinarily complex and its effect varies
considerably by type of payor, type of payee and type of recipient.
TAX WITHHOLDING. Generally, unless you provide us with a satisfactory written
election to the contrary prior to the distribution, we are required to withhold
income tax from any proceeds we distribute as part of a taxable transaction
under your policy. If you do not wish us to withhold tax from the payment, or
if we do not withhold enough, you may have to pay later, and you may incur
penalties under the estimated income tax rules. In some cases, where generation
skipping taxes may apply, we may also be required to withhold for such taxes
unless we are provided satisfactory notification that no such taxes are due.
States may also require us to withhold tax on distributions to you and may not
always follow federal rules.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U.S. entity recipients which
are treated as foreign because they fail to document their U.S. status before
payment is made. We do not discuss these rules here in detail. However, we may
require additional documentation in the case of payments made to United States
persons living abroad and non-United States persons (including U.S. entities
treated as foreign) prior to processing any requested transaction. For Puerto
Rico and other jurisdictions, income is considered U.S.-source income. We
anticipate requiring owners or beneficiaries in Puerto Rico which are not
individuals to document their status to avoid 30% FATCA withholding from
U.S.-source income.
POSSIBILITY OF FUTURE TAX CHANGES AND OTHER TAX INFORMATION
The U.S. Congress frequently considers legislation that, if enacted, could
change the tax treatment of life insurance policies or increase the taxes we
pay in connection with such policies. This could include special rules for
tax-exempt entities as well as for corporate or business use of policies. In
addition to legislation enacted in December 2017, Congress may also consider
further proposals to comprehensively reform or overhaul the United States tax
and retirement systems, which if enacted, could affect the tax benefits of a
life insurance policy. Legislative proposals could make sweeping changes to
many long-standing tax rules, including certain tax benefits currently
available to newly purchased cash value life insurance policies. Proposals have
been considered to eliminate some or all taxable expenditures or tax
preferences together with some lowering of tax rates. We cannot predict what,
if any, legislation will actually be proposed or enacted or what type of
grandfathering will be allowed for existing life insurance policies. In
addition, the Treasury Department may amend existing regulations, issue
regulations on the qualification of life insurance and modified endowment
contracts, or adopt new or clarifying interpretations of existing law. Some
areas of possible future guidance include new rules for testing for policies
issued on a special risk class basis. As a result, there are areas of some
uncertainty even under current laws, such that future tax consequences of a
policy could be other than as described herein.
State and local tax law or, if you are not a U.S. citizen and resident, foreign
tax law, may also affect the tax consequences to you, the insured person or
your beneficiary, and are subject to change or change in interpretation. Any
changes in federal, state, local or foreign tax law or interpretations could
have a retroactive effect both on our taxes and on the way your policy is taxed
or the tax benefit of life insurance policies.
2009 OR LATER INCREASES IN BENEFITS OR COVERAGE, ADDITION OF RIDERS, OR CERTAIN
OTHER POLICY CHANGES
In addition to the other tax effects that an increase or decrease in benefits
under your policy may have as discussed earlier in this tax information
section, several IRS Notices collectively provide special guidance concerning
the mortality charge assumptions permitted for federal income tax testing
purposes for certain changes made in 2009 or later to policies issued prior to
2009 based on 1980 Commissioners Standard Ordinary ("1980 CSO") mortality
tables.
The Notices provide "safe harbor" guidance which would not require certain 2009
or later changes to cause tax testing to become subject to any prevailing
mortality tables subsequent to the 1980 CSO mortality tables. This safe harbor
guidance covers certain changes that are pursuant to the terms of the policy,
including the addition or removal of a rider and an increase or decrease in the
death benefit. If we determine that a transaction would cause your policy to
lose its ability to be tax tested under the 1980 CSO mortality tables under
which your policy operates, we intend to refuse such 2009 or later transactions
which might otherwise have been available under your policy, subject to our
rules then in effect. We would take such action to help assure that your policy
can continue to qualify as life insurance for federal tax testing under the
1980 CSO mortality tables. Certain ratings changes and requests for
substitution of the insured will not be permitted in the absence of further
guidance. There can be no assurance as to whether such guidance will be
provided or what any such guidance may provide.
OTHER INFORMATION
There are a number of tax benefits associated with variable life insurance
policies. For tax benefits to be available, the policy owner must have an
insurable interest in the life of the insured under applicable state laws.
Requirements may vary by state. A failure can, among other consequences, cause
the policy owner to lose anticipated favorable federal tax treatment generally
afforded life insurance.
For tax benefits to continue, the policy must continue to qualify as life
insurance. We reserve the right to restrict transactions that we determine
would cause your policy to fail to qualify as life insurance under federal tax
law. In addition to other requirements, federal tax law requires that the
insurer, and not the policy owner, have control of the underlying investment
assets for the policy to qualify as life insurance.
You may make transfers among Portfolios of the Separate Account, but you may
not direct the investments each Portfolio makes. If the IRS were to conclude
that you, as the investor, have control over these investments, then the policy
would no longer qualify as life insurance. You would be treated as the owner of
separate account assets and be currently taxed on any income or gain the assets
generate.
The IRS has provided some guidance on investor control, but many issues remain
unclear. One such issue is whether a policy owner can have too much investor
control if the variable life policy offers a large number of investment options
in which to invest account values and/or
35
TAX INFORMATION
the ability to make frequent transfers available under the policy. We do not
know if the IRS will provide any further guidance on the issue. If guidance is
provided, we do not know if it would apply retroactively to policies already in
force.
We believe that our variable life policies do not give policy owners investment
control over the investments underlying the various investment options;
however, the IRS could disagree with our position. The IRS could seek to treat
policy owners with a large number of investment options and/or the ability to
freely transfer among investment options as the owners of the underlying
Portfolio's shares. Accordingly, we reserve the right to modify your policy as
necessary to attempt to prevent you from being considered the owner of your
policy's proportionate share of the assets of the Separate Account.
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TAX INFORMATION
9. More information about policy features and benefits
ALTERNATIVE HIGHER DEATH BENEFIT IN CERTAIN CASES
The basic Option A and Option B death benefits are described under "About your
life insurance benefit" in "Risk/benefit summary: Policy features, benefits and
risks" earlier in this prospectus.
We will automatically pay an alternative death benefit if it is HIGHER than the
basic Option A or Option B death benefit you have selected. This alternative
death benefit is computed by multiplying your policy's account value on the
insured person's date of death by a percentage specified in your policy. The
percentage depends on the insured person's age. Representative percentages are
as follows:
IF THE ACCOUNT VALUE IN YOUR POLICY IS HIGH ENOUGH, RELATIVE TO THE FACE
AMOUNT, THE LIFE INSURANCE BENEFIT WILL AUTOMATICALLY BE GREATER THAN THE
OPTION A OR OPTION B DEATH BENEFIT YOU HAVE SELECTED.
----------------------------------------------------------------------------------------------------------
AGE:* 40 AND UNDER 45 50 55 60 65
----------------------------------------------------------------------------------------------------------
%: 250% 215% 185% 150% 130% 120%
----------------------------------------------------------------------------------------------------------
AGE: 70 75-95 99 AND OVER
----------------------------------------------------------------------------------------------------------
%: 115% 105% 101%
----------------------------------------------------------------------------------------------------------
|
* For the then-current policy year.
This higher alternative death benefit exposes us to greater insurance risk than
the regular Option A and B death benefits. Because the cost of insurance
charges we make under your policy are based in part on the amount of our risk,
you will pay more cost of insurance charges for any periods during which the
higher alternative death benefit is the operative one.
The alternative higher death benefit is a component of the Option A and Option
B death benefits that will be paid (if higher) in order for the Incentive
Life(R) '02 policy to satisfy the definition of "life insurance contract" under
Section 7702 of the Code. In general, for a policy to be treated as a life
insurance contract under the Code, it must pass one of two tests, the cash
value accumulation test or the guideline premium/cash value corridor test. Only
the guideline premium/cash value corridor test applies to the Incentive Life(R)
'02 policy. Under the guideline premium requirement, the sum of the premiums
paid under the policy may not at any time exceed the greater of the guideline
single premium or the sum of the guideline level premiums, for the benefits
promised under the policy. Under the cash value corridor requirement, the death
benefit at any time must be equal to or greater than the applicable percentage
of policy account value specified in Section 7702(c) of the Code. We apply
these principles to both Option A and Option B death benefits.
The operative period for the higher alternative death benefit is determined in
connection with the requirements of the Code. The calculation of the death
benefit is built into the monthly calculation of the cost of insurance charge,
which is based on the net amount at risk. The need for the higher alternative
death benefit is assessed on each monthly anniversary date, and on the death of
the insured. Each policy owner receives an annual statement showing various
policy values. The annual statement shows the death benefit amount as of the
policy anniversary, and that amount would reflect the alternative higher death
benefit amount, if applicable at that time. This annual statement also reflects
the monthly cost of insurance charge for the policy year, reflecting a higher
net amount at risk in those months when the higher alternative death benefit is
in effect.
OTHER ADJUSTMENTS TO DEATH BENEFIT. We will increase the death benefit proceeds
by the amount of any other benefits we owe upon the insured person's death
under any optional riders which are in effect.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loans and unpaid loan interest, as well as any amount of monthly charges
under the policy that remain unpaid because the insured person died during a
grace period. We also reduce the death benefit if we have already paid part of
it under a living benefits rider. We reduce it by the amount of the living
benefits payment plus interest. See "Your option to receive a terminal illness
living benefit" earlier in this prospectus.
GUARANTEE PREMIUM TEST FOR NO-LAPSE GUARANTEES
We offer two guarantees against policy lapse that depend on your having paid
specified amounts of premiums. We refer to these two guarantees as our
"no-lapse guarantee" and our "extended no-lapse guarantee," and you can read
more about them in "You can guarantee that your policy will not terminate
before a certain date" in "Risk/ benefit summary: Policy features, benefits and
risks," earlier in this prospectus.
GUARANTEE PREMIUM TEST. If your policy's net account value is not sufficient to
pay a monthly deduction that has become due, we check to see if the cumulative
amount of premiums that you have paid to date at least equals the cumulative
guarantee premiums due to date for either the no-lapse guarantee or extended
no-lapse guarantee that are then available under your policy. If it does, your
policy will not lapse, provided that you have no policy loans outstanding and
provided that the period of the corresponding guarantee has not expired.
When we calculate the cumulative amount of guarantee premiums for the no-lapse
or extended no-lapse guarantees, we compound each amount at a 4% annual
interest rate from the due date through the date of the calculation. (This
interest rate is only for purposes of determining whether you have satisfied
the guarantee test for an available duration. It does not bear any relation to
the returns you will actually earn or any loan interest you will actually pay.)
We use the same calculation for determining the cumulative amount of premiums
paid, beginning with the date each premium is received. The amount of premiums
you must pay to maintain a guarantee against termination will be increased by
the cumulative amount of any partial withdrawals you have taken from your
policy (calculated by the same method, beginning with the date of withdrawal).
GUARANTEE PREMIUMS. The amount of the guarantee premiums for each of the
no-lapse or extended no-lapse guarantees is set forth in your policy on a
monthly basis if that guarantee is available to you.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
The guarantee premiums are actuarially determined at policy issuance and depend
on the age and other insurance risk characteristics of the
insured person, as well as the amount of the coverage and additional features
you select. The guarantee premiums may change if, for example, the face amount
of the policy changes, or a rider is added or eliminated, or if there is a
change in the insured person's risk characteristics. We will send you a new
policy page showing any change in your guarantee premiums. Any change will be
prospective only, and no change will extend a guarantee period beyond its
original number of years.
CUSTOMER LOYALTY CREDIT
Effective as of your policy monthly anniversary in May 2012, we provide a
monthly Customer Loyalty Credit at an annual rate of 0.10% on a current
(non-guaranteed) basis. The credit will be calculated at the beginning of each
policy month as a percentage of the amount of the policy account that is then
allocated to the variable investment options (not including any value we are
holding as collateral for any policy loans).
PAID UP DEATH BENEFIT GUARANTEE
Subject to our approval, you may elect the "paid up" death benefit guarantee at
any time after the fourth year. This benefit provides an opportunity to lock in
all or a portion of your policy's death benefit without making additional
premium payments. Also, this benefit may be attractive to you if you are
concerned about the impact of poor future investment performance or increases
in policy charges on your policy's death benefit and potential policy lapse.
You may elect this benefit provided:
. you have death benefit "Option A" in effect (see "About your life insurance
benefit" in "Risk/benefit summary: Policy features, benefits and risks,"
earlier in this prospectus);
. you terminate any additional benefit riders to your policy;
. the election must not cause the policy to lose its qualification as life
insurance under the Internal Revenue Code or require a distribution from
the policy to avoid such disqualification; and
. the election must not reduce the face amount (see below) to less than the
minimum face amount for which we would then issue a policy.
The paid up death benefit guarantee applies only to your base policy's face
amount, and not to other coverage under any riders that (as noted above) must
be terminated when the guarantee is elected. As explained below, electing the
paid up death benefit guarantee may reduce your policy's face amount, which in
turn may result in the deduction of a surrender charge. You can request a
personalized illustration that will show you how your policy face amount could
be reduced and values could be affected by electing the paid up death benefit
guarantee.
POSSIBLE REDUCTION OF FACE AMOUNT. The face amount of your policy after this
guarantee is elected is the lesser of (a) the face amount immediately before
the election or (b) the policy account value divided by a factor based on the
then age of the insured person. The factors are set forth in your policy. As a
general matter, the factors change as the insured person ages so that, if your
account value stayed the same, the result of the calculation under clause
(b) above would be lower the longer your policy is in force.
If electing the paid up death benefit guarantee causes a reduction in face
amount, we will deduct the same portion of any remaining surrender charge as we
would have deducted if you had requested that decrease directly (rather than
electing the paid up death benefit guarantee). (See "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus.)
OTHER EFFECTS OF THIS GUARANTEE. You generally may continue to pay premiums
after you have elected the paid up death benefit guarantee (subject to the same
limits as before), but premium payments are not required. If the election
causes your face amount to decrease, however, the amount of additional premiums
you are permitted to pay, if any, may be reduced. You may continue to make
transfers, but you may not change the death benefit option or add riders that
have their own charges while the paid up death benefit guarantee is in effect.
Partial withdrawals while the paid up death benefit guarantee is in effect will
generally be subject to the same terms and conditions as any other partial
withdrawal (see "Making withdrawals from your policy" earlier in this
prospectus), except that:
. We may decline your request for a partial withdrawal (or any other policy
change) under the circumstances described in the paid up death benefit
guarantee policy endorsement. If this occurs, you may wish to consider
asking us to terminate the paid up death benefit guarantee.
. Partial withdrawals (and any distributions we may be required to make for
tax purposes) will generally reduce your policy's face amount by more than
the amount of the withdrawal.
The election of the paid up death benefit guarantee may cause your policy to
become a modified endowment contract under certain circumstances. See "Tax
treatment of distributions to you" under "Tax information," earlier in this
prospectus. You should consult your tax advisor before making this election.
OTHER BENEFITS YOU CAN ADD BY RIDER
You may be eligible for the following other optional benefits made available by
rider:
. disability deduction waiver -- This rider waives the monthly charges from
the policy account value if the insured is totally disabled, as defined in
the rider, for at least six consecutive months and the disability began
prior to the policy anniversary nearest the insured's 60th birthday. If
total disability begins on or after this date, the monthly charges are
waived to the earlier of the policy anniversary nearest the insured's age
65 or the termination of disability. Issue ages are 0 - 59. However,
coverage is not provided until the insured's fifth birthday. The maximum
amount of coverage is $3,000,000 for all AXA Equitable and affiliates'
policies in-force and applied for.
. disability premium waiver -- This rider pays the specified premium or
waives the monthly charges from the policy account value, if that amount is
greater and if the insured is totally disabled, as defined in the rider,
for at least six consecutive months and the disability began prior to the
policy anniversary nearest the insured's 60th birthday. If total disability
begins on or after this date, the specified premium is paid (or the monthly
charges, if greater, are waived) to the earlier of the policy anniversary
nearest the
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insured's age 65 or the termination of disability. Issue ages are 0 - 59.
However, coverage is not provided until the insured's fifth birthday. The
maximum amount of coverage is $3,000,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. option to purchase additional insurance -- This rider allows the policy
owner to purchase a new policy for the amount of the option, on specific
dates, without evidence of insurability. The minimum option amount is
$25,000 and the maximum amount is $100,000. Issue ages are 0 - 37.
. children's term insurance -- This rider provides term insurance on the life
of the insured's children, stepchildren and legally adopted children who
are between the ages of 15 days to 18 years. The insured under the base
policy must be between the issue ages of 17 and 55.
We add the following benefits automatically at no charge to each eligible
policy:
. substitution of insured person rider -- (see "You can change your policy's
insured person" under "More information about procedures that apply to your
policy")
. waiver of surrender charge due to tax law change rider (for certain future
federal estate tax repeal situations) -- This endorsement waives the
surrender charges otherwise applicable upon surrender or reduction in the
face amount any time there is no Federal Estate Tax in effect, beginning in
2011. (This benefit is not available for policies issued on or after
February 1, 2006.)
. living benefits rider -- (see "Your option to receive a terminal illness
living benefit" under "Accessing your money")
. accounting benefit endorsement (see below)
. paid up death benefit guarantee -- (see "Paid up death benefit guarantee"
earlier in this section)
AXA Equitable or your financial professional can provide you with more
information about these riders. Some of these benefits may be selected only at
the time your policy is issued. Some benefits are not available in combination
with others or may not be available in your state. The riders provide
additional terms, conditions and limitations, and we will furnish samples of
them to you on request. We can add, delete, or modify the riders we are making
available, at any time before they become effective as part of your policy.
See also "Tax information" earlier in this prospectus for certain possible tax
consequences and limitations of adding or deleting riders or changing the death
benefits under a rider.
ACCOUNTING BENEFIT ENDORSEMENT
Subject to the conditions discussed below, AXA Equitable offered an endorsement
to your policy (the "Endorsement") that refunded or waived all or a portion of
certain policy charges if the policy is surrendered for its net cash surrender
value within a limited time period.
Under our current rules, the Endorsement was offered where the following
conditions were met:
. policies were corporately owned, or are "split-dollar" cases that are
collaterally assigned to the company;
. the persons proposed to be insured were deemed by us to be "highly
compensated" individuals;
. the minimum initial premium under each policy was remitted to AXA Equitable
by the employer; and
. the aggregate annualized first year planned periodic premium was at least
$150,000 if a minimum of three policies is issued, each on the life of a
different insured person, and at least $500,000 if less than three policies
were issued.
Eligible cases were issued with the accounting benefit endorsement unless the
policy owner requested us in writing to not include the Endorsement.
The Endorsement reduces the difference between the premiums paid for the policy
and the amount we will pay you if the policy is surrendered in its early years.
This, in turn, is expected to reduce any charge against the employer's earnings
when the employer accounts for the policy under generally accepted accounting
principles (GAAP). Policy owners must rely on the advice of their own
accountants, however, to determine how the purchase of a policy, as modified by
the Endorsement, will affect their GAAP financial statements.
The Endorsement works by refunding all or a portion of the deductions from
premiums and waiving all or a portion of the surrender charges, if the policy
is surrendered in its early years. The percentage of charges refunded or waived
under the Endorsement are as follows:
------------------------------------------------------------
SURRENDER IN POLICY PERCENT OF PREMIUM PERCENT OF SURRENDER
YEAR DEDUCTION REFUNDED CHARGES WAIVED
------------------------------------------------------------
1 100% 100%
------------------------------------------------------------
2 67% 80%
------------------------------------------------------------
3 33% 60%
------------------------------------------------------------
4 0% 40%
------------------------------------------------------------
5 0% 20%
------------------------------------------------------------
6 and later 0% 0%
------------------------------------------------------------
|
For example, if a policy subject to the Endorsement were surrendered in its
second policy year, we would refund:
. 67% of the charges that had been deducted from premiums (i.e., the sales
charge); and
. 80% of the amount of surrender charges that we otherwise would have imposed
for the surrender.
Once the Endorsement terminates at the end of the fifth policy year, however,
there will be no refund of prior deductions from premiums, and the full amount
of the surrender charges otherwise payable under the policy will be assessed
upon surrender. The Endorsement operates only if the policy is surrendered in
full. There is no waiver of surrender charges or refund of premium deductions
if the policy terminates after a grace period or if the face amount is reduced
nor is there a refund of prior premium deductions for partial withdrawals. The
Endorsement does not affect the amount available for borrowing or withdrawing
from your policy nor does it affect the calculations to determine whether your
policy will lapse or terminate. The Endorsement may affect, however, the
calculations to determine whether your policy satisfies the definition of "life
insurance contract" under Section 7702 of the Code. In some cases, this may
result in the payment of a higher death benefit in the first three policy years
where it is necessary to satisfy tax law requirements.
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We offer products designed specifically for this marketplace. You can contact
us to find out more about any other AXA Equitable insurance policy.
VARIATIONS AMONG INCENTIVE LIFE(R) '02 POLICIES
Time periods and other terms and conditions described in this prospectus may
vary due to legal requirements in your state. These variations will be
reflected in your policy.
AXA Equitable also may vary or waive the charges (including surrender charges)
and other terms of Incentive Life(R) '02 where special circumstances (including
certain policy exchanges) result in sales or administrative expenses or
mortality risks that are different from those normally associated with
Incentive Life(R) '02. We will make such variations only in accordance with
uniform rules that we establish.
AXA Equitable or your financial professional can advise you about any
variations that may apply to your policy.
YOUR OPTIONS FOR RECEIVING POLICY PROCEEDS
BENEFICIARY OF DEATH BENEFIT. You designate your policy's beneficiary in your
policy application. You can change the beneficiary at any other time during the
insured person's life. If no beneficiary is living when the insured person
dies, we will pay the death benefit proceeds in equal shares to the insured
person's surviving children. If there are no surviving children, we will
instead pay the insured person's estate.
PAYMENT OPTIONS FOR DEATH BENEFIT. In your policy application, or at any other
time during the insured person's life, you may choose among several payment
options for all or part of any death benefit proceeds that subsequently become
payable. These payment options are described in the policy and may result in
varying tax consequences. A payment option selected by the policy's owner
cannot be changed by the beneficiary after the insured person dies. The terms
and conditions of each option are set out in a separate contract that we will
send to the payee when a payment option goes into effect. AXA Equitable or your
financial professional can provide you with samples of such contracts on
request.
YOU CAN CHOOSE TO HAVE THE PROCEEDS FROM THE POLICY'S LIFE INSURANCE BENEFIT
PAID UNDER ONE OF OUR PAYMENT OPTIONS, RATHER THAN AS A SINGLE SUM.
If you have not elected a payment option, we will pay any death benefit in a
single sum. If the beneficiary is a natural person (i.e., not an entity such as
a corporation) and so elects, death benefit proceeds can be paid through the
"AXA Equitable Access Account", which is a draft account that works in certain
respects like an interest-bearing checking account. In that case, we will send
the beneficiary a draftbook, and the beneficiary will have immediate access to
the proceeds by writing a draft for all or part of the amount of the death
benefit proceeds. AXA Equitable will retain the funds until a draft is
presented for payment. Interest on the AXA Equitable Access Account is earned
from the date we establish the account until the account is closed by your
beneficiary or by us if the account balance falls below the minimum balance
requirement, which is currently $1,000. The AXA Equitable Access Account is
part of AXA Equitable's general account and is subject to the claims of our
creditors. We will receive any investment earnings during the period such
amounts remain in the general account. The AXA Equitable Access Account is not
a bank account or a checking account and it is not insured by the FDIC. Funds
held by insurance companies in the general account are guaranteed by the
respective state guaranty association.
A beneficiary residing outside of the U.S., however, cannot elect the AXA
Equitable Access Account. If the beneficiary is a trust that has two or fewer
trustees, death benefit proceeds can be paid through the AXA Equitable Access
Account.
If a financial professional has assisted the beneficiary in preparing the
documents that are required for payment of the death benefit and the
beneficiary so elects, we will send the AXA Equitable Access Account checkbook
or check to the financial professional within the periods specified for death
benefit payments under "When we pay policy proceeds," later in this prospectus.
Our financial professionals will take reasonable steps to arrange for prompt
delivery to the beneficiary.
PAYMENT OPTIONS FOR SURRENDER AND WITHDRAWAL PROCEEDS. You can also choose to
receive all or part of any proceeds from a surrender or withdrawal from your
policy under one of the above referenced payment options, rather than as a
single sum.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since these policies are no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You may cancel your policy by returning the policy along with a properly signed
and completed written request for cancellation to our Administrative Office or,
in some states, to the agent who sold it to you, by the 10th day after you
receive it (or such longer period as required under state law). Your coverage
will terminate as of the business day we receive your request at our
Administrative Office (or, in some states, as of the business day the agent
receives your request).
In most states, we will refund the premiums that were paid, less any
outstanding loan and accrued loan interest. In other states, we will refund the
policy account value calculated as of the date the policy was returned, plus
any charges that were deducted from premiums that were paid and from the policy
account value, less any outstanding loan and accrued loan interest.
Your policy will set forth the length of your "free look" period.
In addition to the cancellation right described above, you have the right to
surrender your policy, rather than cancel it. Please see "Surrendering your
policy for its net cash surrender value," earlier in this prospectus.
Surrendering your policy may yield results different than canceling your
policy, including a greater potential for taxable income. In some cases, your
cash value upon surrender may be greater than your contributions to the policy.
Please see "Tax information," earlier in this prospectus for possible
consequences of cancelling your policy.
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10. More information about certain policy charges
DEDUCTING POLICY CHARGES
PURPOSES OF POLICY CHARGES. The charges under the policies are designed to
cover, in the aggregate, our direct and indirect costs of selling,
administering and providing benefits under the policies. They are also
designed, in the aggregate, to compensate us for the risks of loss we assume
pursuant to the policies. If, as we expect, the charges that we collect from
the policies exceed our total costs in connection with the policies, we will
earn a profit. Otherwise, we will incur a loss. In addition to the charges
described below, there are also charges at the Portfolio level, which are
described in the prospectuses of the Portfolios in which the funds invest. For
additional information on all policy charges, see "Risk/benefit summary:
Charges and expenses you will pay."
TRANSACTION CHARGES
On the first day of each policy month, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below (see "Periodic charges" below). In addition, charges may be deducted for
transactions such as premium payments, policy surrenders, requested decreases
in face amount, or transfers among investment options.
. PREMIUM CHARGE. We deduct an amount not to exceed 6% from each premium
payment you send us. We may increase this charge higher than 6% however, as a
result of changes in the tax laws which increase our expenses. Currently, we
reduce this charge to 3% after an amount equal to ten "target premiums" has
been paid. The "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount, among other factors. Generally, the target premiums per thousand are
lower for face amounts of $250,000 and higher. In addition, if your policy
includes the accounting benefit endorsement, a portion of the deductions from
premiums will be refunded upon surrender within the first three policy years
(see "Accounting benefit endorsement" in "More information about policy
features and benefits" earlier in this prospectus). The premium charge is
designed in part to defray sales and tax expenses we incur that are based on
premium payments.
. SURRENDER CHARGES. If you give up this policy for its net cash surrender
value before the end of the tenth policy year, we will subtract a surrender
charge from your policy account value. The surrender charge in the first policy
month of each policy year is shown in your policy. The initial surrender charge
will be between $5.97 and $30.93 per $1,000 of initial base policy face amount.
The surrender charge declines uniformly in equal monthly amounts within each
policy year beginning after the sixth policy year until it reaches zero in the
twelfth month of policy year 10. The initial amount of surrender charge depends
on each policy's specific characteristics. In addition, if your policy includes
the accounting benefit endorsement, the surrender charges are reduced (see
"Accounting benefit endorsement" in "More information about policy features and
benefits" earlier in this prospectus).
The surrender charges are contingent deferred sales charges. They are
contingent because you only pay them if you surrender your policy for its net
cash surrender value (or request a reduction in its face amount, as described
below). They are deferred because we do not deduct them from your premiums.
Because the surrender charges are contingent and deferred, the amount we
collect in a policy year is not related to actual expenses for that year.
The surrender charges assessed in connection with giving up this policy or with
reductions in policy face amount are intended, in part, to compensate us for
the fact that it takes us time to make a profit on your policy, and if you give
up or reduce the face amount of your policy in its early years, we do not have
the time to recoup our costs.
. REQUEST A DECREASE IN YOUR POLICY'S FACE AMOUNT. If there is a requested base
policy face amount reduction within the first 10 policy years, or the paid-up
death benefit guarantee is elected for a reduced amount during a surrender
charge period, a proportionate surrender charge will be deducted from your
policy account value.
Assuming you have not previously changed the base policy face amount, a
proportionate surrender charge will be determined by dividing the amount of the
reduction in base policy face amount by the initial base policy face amount of
insurance, and then multiplying that fraction by the surrender charge
immediately before the reduction. The proportionate surrender charge will not
exceed the unloaned policy account value at the time of the reduction. If a
proportionate surrender charge is made, the remaining surrender charge will be
reduced proportionately. We will not deduct a proportionate surrender charge if
the reduction resulted from a change in death benefit option or a partial
withdrawal.
. TRANSFERS AMONG INVESTMENT OPTIONS. Although we do not currently charge for
transfers among investment options, we reserve the right to make a transfer
charge up to $25 for each transfer of amounts among your investment options.
The transfer charge, if any, is deducted from the amounts transferred from your
policy's value in the variable investment options and in our guaranteed
interest option based on the proportion that the amount transferred from each
variable investment option and from our guaranteed interest option bears to the
total amount being transferred. Any such charge would be, in part, to
compensate us for our expenses in administering transfers. The charge will
never apply to a transfer of all of your variable investment option amounts to
our guaranteed interest option, or to any transfer pursuant to our automated
transfer service or asset rebalancing service.
. ADDING A LIVING BENEFITS RIDER. If you elect the living benefits rider after
the policy is issued, we will deduct $100 from your policy account value at the
time of the transaction. This fee is designed, in part, to compensate us for
the administrative costs involved in processing the request.
. EXERCISE OF OPTION TO RECEIVE A TERMINAL ILLNESS "LIVING BENEFIT." If you
elect to receive a terminal illness "living benefit,"
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we will deduct up to $250 from any living benefit we pay. This fee is designed,
in part, to compensate us for the administrative costs involved in processing
the request.
SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service. For
certain services, we will deduct from your policy account value any withdrawal
charge that applies and the charge for the special service. Please note that we
may discontinue some or all of these services without notice.
. WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
. EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the
amount you request.
. POLICY ILLUSTRATION CHARGE. We do not charge for illustrations. We reserve
the right to charge in the future.
. DUPLICATE POLICY CHARGE. We charge $35 for providing a copy of your policy.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our Administrative Office, or (iii)
by any other means we make available to you.
. POLICY HISTORY CHARGE. We charge a maximum of $50 for providing you a history
of policy transactions. If you request a policy history of less than 5 years
from the date of your request, there is no charge. If you request a policy
history of more than 5 years but less than 10 years from the date of your
request, the current charge is $25. For policy histories of 10 years or more,
the charge is $50. For all policy histories, we reserve the right to charge a
maximum of $50. The charge for this service can be paid (i) using a credit card
acceptable to AXA Equitable, (ii) by sending a check to our Administrative
Office, or (iii) by any other means we make available to you.
. CHARGE FOR RETURNED PAYMENTS. For each payment you make in connection with
your policy that is returned for insufficient funds, we will charge a maximum
of $25.
PERIODIC CHARGES
On the first day of each month of the policy, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below.
. ADMINISTRATIVE CHARGE. In the first policy year, we deduct $20 from your
policy account value at the beginning of each policy month. In all subsequent
policy years (but not beyond the policy anniversary when the insured person is
attained age 100), we currently deduct $8 from your policy account value at the
beginning of each policy month. We reserve the right to increase or decrease
this latter amount in the future, although it will never exceed $10. In
addition, we deduct between $0.03 and $0.10 per $1,000 of your initial base
policy face amount at the beginning of each policy month in the first ten
policy years. The administrative charge is intended, in part, to compensate us
for the costs involved in administering the policy.
. COST OF INSURANCE CHARGE. The cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured and the policy year. The monthly cost of
insurance charge is determined by multiplying the cost of insurance rate that
is then applicable to your policy by the amount we have at risk under your
policy divided by $1,000. Our amount at risk (also described in your policy as
"net amount at risk") on any date is the difference between (a) the death
benefit that would be payable if the insured person died on that date and
(b) the then total account value under the policy. A greater amount at risk, or
a higher cost of insurance rate, will result in a higher monthly charge. The
cost of insurance rates are intended, in part, to compensate us for the cost of
providing insurance to you under your policy.
Generally, the cost of insurance rate increases from one policy year to the
next. This happens automatically because of the insured person's increasing age.
On a guaranteed basis, we deduct between $0.06 and $83.34 per $1,000 of the
amount for which we are at risk under your policy from your policy account
value each month (but not beyond the policy anniversary date when the insured
person is attained age 100). As the amount for which we are at risk at any time
is the death benefit (calculated as of that time) minus your policy account
value at that time, changes in your policy account value resulting from the
performance of your investment options can affect your amount at risk, and as a
result, your cost of insurance. Our cost of insurance rates are guaranteed not
to exceed the maximum rates specified in your policy. For most insured persons
at most ages, our current (non-guaranteed) rates are lower than the maximum
rates. However, we have the ability to raise these rates up to the guaranteed
maximum at any time, subject to any necessary regulatory approvals.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) '02 policies for insureds who are age 18 or above are based on the 1980
Commissioner's Standard Ordinary SB Smoker and NB Non-Smoker Mortality Tables.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) '02 policies for insureds who are under age 18 are based on the 1980
Commissioner's Standard Ordinary Mortality Table B. For all other policies, for
insureds who are age 18 or above, the guaranteed maximum cost of insurance
rates are based on the 1980 Commissioner's Standard Ordinary Male and Female
Smoker and Non-Smoker Mortality Tables. For insureds who are under age 18, the
guaranteed maximum cost of insurance rates are based on the 1980 Commissioner's
Standard Ordinary Male and Female Mortality Tables.
Our cost of insurance rates will generally be lower (except for gender-neutral
policies and in connection with certain employee benefit plans) if the insured
person is a female than if a male. They also will generally be lower for
non-tobacco users than tobacco users and lower for persons that have other
highly favorable health characteristics, as compared to those that do not. On
the other hand, insured persons who present particular health, occupational or
avocational risks may be charged higher cost of insurance rates and other
additional charges as specified in their policies. In addition, the current
rates also vary depending on the duration of the policy (i.e., the length of
time since the policy was issued).
For policies issued at ages 0-17, an insured's cost of insurance rate is not
based on that insured's status as a tobacco user or non-tobacco
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user. We offer non-tobacco rates for ages 18 and above only. Approximately 60
days prior to the policy anniversary date nearest the insured's 18th birthday,
we will send a notice to the policy owner giving the policy owner the
opportunity to obtain non-tobacco rates by sending the form back to us with a
certification, signed by the policy owner and the insured, that the insured has
not used tobacco products in the last 12 months. If the properly completed form
is not received by our Administrative Office by the policy anniversary date
nearest the insured's 18th birthday, tobacco user rates will apply. The policy
owner, thereafter, may apply for non-tobacco user rates subject to our
underwriting rules in effect at that time.
You may ask us to review the tobacco habits of an insured person of attained
age 18 or over in order to change the charge from tobacco user rates to
non-tobacco user rates. The change, if approved, may result in lower future
cost of insurance rates beginning on the effective date of the change to
non-tobacco user rates.
The change will be based upon our general underwriting rules in effect at the
time of application, and may include criteria other than tobacco use status as
well as a definition of tobacco use different from that applicable at the time
this policy was issued.
Similarly, after the first policy year, you may request us to review the
insured person's rating to see if they qualify for a reduction in future cost
of insurance rates. Any such change will be based upon our general underwriting
rules in effect at the time of application, and may include various criteria.
For information concerning possible limitations on any ratings changes, please
see "2009 or later increases in benefits or coverage, addition of riders, or
certain other policy changes" in "Tax information" earlier in this prospectus.
The change in rates, if approved, will take effect at the beginning of the
policy month that coincides with or next follows the date we approve your
request. This change may have adverse tax consequences.
Our cost of insurance rates also depend on how large the face amount is at the
time we deduct the charge. Generally, the current (non-guaranteed) cost of
insurance rates are lower for face amounts of $250,000 and higher, and further
reduced for face amounts of $2,000,000 and higher. For this purpose, however,
we will take into account all face amount decreases, whatever their cause.
Therefore, a decrease in the face amount may cause your cost of insurance rates
to go up.
. MORTALITY AND EXPENSE RISK CHARGE. We will collect a monthly charge for
mortality and expense risk. We are committed to fulfilling our obligations
under the policy and providing service to you over the lifetime of your policy.
Despite the uncertainty of future events, we guarantee that monthly
administrative and cost of insurance deductions from your policy account value
will never be greater than the maximum amounts shown in your policy. In making
this guarantee, we assume the mortality risk that insured persons (as a group)
will live for shorter periods than we estimated. When this happens, we have to
pay a greater amount of death benefit than we expected to pay in relation to
the cost of insurance charges we received. We also assume the expense risks
that the cost of issuing and administering policies will be greater than we
expected. This charge is designed, in part, to compensate us for taking these
risks.
During the first fifteen years, we deduct a monthly charge at an annual rate of
0.80% of the value in your policy's variable investment options up to $250,000,
0.70% of the value over $250,000 and up to $2 million, and 0.60% of the value
over $2 million. In policy year 16 and thereafter, we deduct a monthly charge
at an annual rate of 0.30% of the value in your policy's variable investment
options up to $250,000 and 0.20% of the value in your policy's variable
investment options over $250,000. We reserve the right to increase or decrease
these charges in the future, although they will never exceed 0.80% during the
first fifteen policy years or 0.50% thereafter. This charge will be calculated
at the beginning of each policy month as a percentage of the amount of the
policy account that is then allocated to the variable investment options.
. LOAN INTEREST SPREAD. We charge interest on policy loans but credit you with
interest on the amount of the policy account we hold as collateral for the
loan. The loan interest spread is the excess of the interest rate we charge
over the interest rate we credit. The maximum loan interest spread is 2%. We
may, however, increase the loan interest spread higher than 2% as a result of
changes in the tax laws which increase our expenses. We deduct this charge on
each policy anniversary date, or on loan termination, if earlier. For more
information on how this charge is deducted, see "Borrowing from your policy"
under "Accessing your money" earlier in this prospectus. As with any loan, the
interest we charge on the loans is intended, in part, to compensate us for the
time value of the money we are lending and the risk that you will not repay the
loan.
OPTIONAL RIDER CHARGES
If you elected the following riders, the following charges, which are designed
to offset the cost of their respective riders, are deducted from your policy
account value, on the first day of each month of the policy. The costs of each
of the riders below are designed, in part, to compensate us for the additional
insurance risk we take on in providing each of these riders and the
administrative costs involved in administering them:
. CHILDREN'S TERM INSURANCE. If you chose this rider, we deduct $0.50 per
$1,000 of rider benefit amount from your policy account value each month until
the insured under the base policy reaches age 65, while the rider is in effect.
The charge for this rider does not vary depending upon the specifics of your
policy. However, we will continue to charge you for the rider, even after all
of your children, stepchildren and legally adopted children have reached age 25
(when a child's coverage under the rider terminates), unless you notify us in
writing that you wish to cancel this rider.
. DISABILITY DEDUCTION WAIVER. If you chose this rider, we deduct an amount
from your policy account value each month until the insured under the base
policy reaches age 65, while the rider is in effect. This amount is between 7%
and 132% of all the other monthly charges (including charges for other riders
elected) deducted from your policy account value on a guaranteed basis. The
current monthly charges for this rider are lower than the maximum monthly
charges.
. DISABILITY PREMIUM WAIVER. If you chose this rider, we deduct an amount from
your policy account value each month while the rider is in effect. This amount
is between $0.02 and $0.76 per $1,000 of initial base policy face amount. If
you also select certain of the other optional riders available under your
policy, we will deduct additional
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amounts from your policy account value per $1,000 of rider benefit amount each
month while both the other rider and this rider are in effect. If you choose
the option to purchase additional insurance, we will deduct an amount between
$0.02 and $0.08. If you choose the children's term insurance, we will deduct an
amount between $0.01 and $0.03. These amounts are in addition to the charges
for the riders themselves.
. OPTION TO PURCHASE ADDITIONAL INSURANCE. If you chose this rider, we deduct
between $0.04 and $0.17 per $1,000 of the option to purchase additional
insurance from your policy account value each month until the insured under the
base policy reaches age 40 while the rider is in effect.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
. Management fees.
. 12b-1 fees (not applicable to all portfolios).
. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
. Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. Certain portfolios available under the contract
in turn invest in shares of other portfolios of AXA Premier VIP Trust and EQ
Advisors Trust and/or shares of unaffiliated portfolios (collectively, the
"underlying portfolios"). The underlying portfolios each have their own fees
and expenses, including management fees, operating expenses, and investment
related expenses such as brokerage commissions. For more information about
these charges, please refer to the prospectuses for the Trusts.
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11. More information about procedures that apply to your policy
This section provides further detail about certain subjects that are addressed
in the previous pages. The following discussion generally does not repeat the
information already contained in those pages.
DATES AND PRICES AT WHICH POLICY EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your policy will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
DATE OF RECEIPT. Where this prospectus refers to the day when we receive a
payment, request, election, notice, transfer or any other transaction request
from you, we usually mean the day on which that item (or the last thing
necessary for us to process that item) arrives in complete and proper form at
our Administrative Office or via the appropriate telephone or fax number if the
item is a type we accept by those means. There are two main exceptions: if the
item arrives (1) on a day that is not a business day or (2) after the close of
a business day, then, in each case, we are deemed to have received that item on
the next business day.
BUSINESS DAY. Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). A business day
does not include a day on which we are not open due to emergency conditions
determined by the Securities and Exchange Commission. We may also close early
due to such emergency conditions. We compute unit values for our variable
investment options as of the end of each business day.
PAYMENTS YOU MAKE. The following are reflected in your policy as of the date we
receive them in complete and proper form:
. premium payments received after the policy's investment start date
(discussed below)
. loan repayments and interest payments
REQUESTS YOU MAKE. The following transactions occur as of the date we receive
your request in complete and proper form:
. withdrawals
. tax withholding elections
. face amount decreases that result from a withdrawal
. changes of allocation percentages for premium payments or monthly deductions
. surrenders
. changes of owner
. changes of beneficiary
. transfers from a variable investment option to the guaranteed interest
option
. changes in form of death benefit payment
. loans
. transfers among variable investment options
. assignments
. termination of paid up death benefit guarantee
The following transactions occur on your policy's next monthly anniversary that
coincides with or follows the date we approve your request:
. changes in face amount
. election of paid up death benefit guarantee
. changes in death benefit option
. restoration of terminated policies
. termination of any additional benefit riders you have elected
AUTOMATIC TRANSFER SERVICE. Transfers pursuant to our automatic transfer
service (dollar cost averaging service) occur as of the first day of each
policy month. If you request the automatic transfer service in your original
policy application, the first transfer will occur as of the first day of the
second policy month after your policy's initial Allocation Date. If you request
this service at any later time, we make the first such transfer as of your
policy's first monthly anniversary that coincides with or follows the date we
receive your request.
ASSET REBALANCING SERVICE. If you request the asset rebalancing service, the
first redistribution will be on the date you specify or the date we receive
your request, if later. However, no rebalancing will occur before your policy's
Allocation Date. Subsequent periodic rebalancings occur quarterly, semiannually
or annually, as you have requested.
DELAY IN CERTAIN CASES. We may delay allocating any payment you make to our
variable investment options, or any transfer, for the same reasons stated in
"Delay of variable investment option proceeds" later in this prospectus. We may
also delay such transactions for any other legally permitted purpose.
PRICES APPLICABLE TO POLICY TRANSACTIONS. If a transaction will increase or
decrease the amount you have in a variable investment option as of a certain
date, we process the transaction using the unit values for that option computed
as of that day's close of business, unless that day is not a business day. In
that case, we use unit values computed as of the next business day's close.
EFFECT OF DEATH OR SURRENDER. You may not make any surrender or partial
withdrawal request after the insured person has died. Also, all insurance
coverage ends on the date as of which we process any request for a surrender.
POLICY ISSUANCE
REGISTER DATE. When we issue a policy, we assign it a "register date," which
will be shown in the policy. We measure the months, years, and anniversaries of
your policy from your policy's register date.
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MORE INFORMATION ABOUT PROCEDURES THAT APPLY TO YOUR POLICY
. If you submit the full minimum initial premium to your financial
professional at the time you sign the application and before the policy is
issued, and we issue the policy as it was applied for, then the register
date will be the later of (a) the date you signed part I of the policy
application or (b) the date a medical professional signed part II of the
policy application.
. If we do not receive your full minimum initial premium at our
Administrative Office before the issue date or, if we issue the policy on a
different basis than you applied for, the register date initially will
appear on your policy as the date the policy is issued; however, we will
move the register date to the date we deliver the policy provided we
received your full minimum initial premium. This will ensure that premiums
and charges will commence on the same date as your insurance coverage. If
your policy was delivered on the 29th, 30th or 31st of the month, we will
move the register date to the 1st of the following month. This could change
the current interest rate for the Guaranteed Interest Account.
We may also permit an earlier than customary register date (a) for
employer-sponsored cases, to accommodate a common register date for all
employees or (b) to provide a younger age at issue. (A younger age at issue
reduces the monthly charges that we deduct under a policy.) The charges and
deductions commence as of the register date, even when we have permitted an
early register date. We may also permit policy owners to delay a register date
(up to three months) in employer-sponsored cases.
INVESTMENT START DATE. This is the date your investment first begins to earn a
return for you. Generally, this is the register date. Before this date, your
initial premium will be held in a non-interest bearing account. If we move your
register date as described in the second bullet under "Policy issuance," above,
we will also move your investment start date and/or interest crediting date to
coincide with the register date.
COMMENCEMENT OF INSURANCE COVERAGE. You must give the full minimum initial
premium to your financial professional on or before the day the policy is
delivered to you. No insurance under your policy will take effect unless
(1) the insured person is still living at the time such payment and delivery
are completed and (2) the information in the application continues to be true
and complete, without material change, as of the time of such payment. If you
submit the full minimum initial premium with your application, we may, subject
to certain conditions, provide a limited amount of temporary insurance on the
proposed insured person. You may request and review a copy of our temporary
insurance agreement for more information about the terms and conditions of that
coverage.
NON-ISSUANCE. If, after considering your application, we decide not to issue a
policy, we will refund any premium you have paid, without interest.
AGE; age at issue. Unless the context in this prospectus requires otherwise, we
consider the insured person's "age" during any policy year to be his or her age
on his or her birthday nearest to the beginning of that policy year. For
example, the insured person's age for the first policy year ("age at issue") is
that person's age on whichever birthday is closer to (i.e., before or after)
the policy's register date.
WAYS TO MAKE PREMIUM AND LOAN PAYMENTS
CHECKS AND MONEY ORDERS. Premiums or loan payments generally must be paid by
check or money order drawn on a U.S. bank in U.S. dollars and made payable to
"AXA Equitable Life Insurance Company."
We prefer that you make each payment to us with a single check drawn on your
business or personal bank account. We also will accept a single money order,
bank draft or cashier's check payable directly to AXA Equitable, although we
must report such "cash equivalent" payments to the Internal Revenue Service
under certain circumstances. Cash and travelers' checks, or any payments in
foreign currency, are not acceptable. We will accept third-party checks payable
to someone other than AXA Equitable and endorsed over to AXA Equitable only
(1) as a direct payment from a qualified retirement plan or (2) if they are
made out to a trustee who owns the policy and endorses the entire check
(without any refund) as a payment to the policy.
ASSIGNING YOUR POLICY
You may assign (transfer) your rights in a policy to someone else as collateral
for a loan, to effect a change of ownership or for some other reason, if we
agree. Collateral assignments may also sometimes be used in connection with
dividing the benefits of the policy under a split-dollar arrangement, which
will also have its own tax consequences. A copy of the assignment must be
forwarded to our Administrative Office. We are not responsible for any payment
we make or any action we take before we receive notice of the assignment or for
the validity of the assignment. An absolute assignment is a change of ownership.
Certain transfers for value may subject you to income tax and penalties and
cause the death benefit to lose its income-tax free treatment. Further, a gift
of a policy that has a loan outstanding may be treated as part gift and part
transfer for value, which could result in both gift tax and income tax
consequences. The IRS issued regulations in both 2002 and 2003 concerning
split-dollar arrangements, including policies subject to collateral
assignments. The regulations provide both new and interim guidance as to the
taxation of such arrangements. These regulations address taxation issues in
connection with arrangements which are compensatory in nature, involve a
shareholder and corporation, or a donor and donee. See also discussion under
"Split-dollar and other employee benefit programs" and "Estate, gift, and
generation-skipping taxes" in the "Tax information" section of this prospectus.
You should consult your tax advisor prior to making a transfer or assignment.
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
NOTE: Notwithstanding the information further below, based upon our current
understanding of federal tax rules at the time this prospectus was prepared, we
are not permitting changes of a policy's insured person. For further
information, please see "2009 or later increases in benefits or coverage,
addition of riders, or certain other policy changes" under "Tax information"
earlier in this prospectus. The following information, therefore, does not
apply, absent IRS guidance that would permit such changes.
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After the policy's second year, we will permit you to request that a new
insured person replace the existing one subject to our rules then in effect.
This requires that you provide us with adequate evidence that the proposed new
insured person meets our requirements for insurance. Other requirements are
outlined in your policy.
Upon making this change, the monthly insurance charges we deduct will be based
on the new insured person's insurance risk characteristics and may result in a
loss of the no-lapse guarantee. The change of insured person will not, however,
affect the surrender charge computation for the amount of coverage that is then
in force.
Substituting the insured person is a taxable event and may, depending upon
individual circumstances, have other tax consequences as well. For example, the
change could cause the policy to be a "modified endowment contract" or to fail
the Internal Revenue Code's definition of "life insurance," or in some cases
require that we also distribute certain amounts to you from the policy. See
"Tax information" earlier in this prospectus. You should consult your tax
advisor prior to substituting the insured person. As a condition to
substituting the insured person we may require you to sign a form acknowledging
the potential tax consequences. In no event, however, will we permit a change
that we believe causes your policy to fail the definition of life insurance.
See "2009 or later increases in benefits or coverage, addition of riders, or
certain other policy changes" in "Tax information" earlier in this prospectus.
REQUIREMENTS FOR SURRENDER REQUESTS
Your surrender request must include the policy number, your name, your taxpayer
identification number, the name of the insured person, and the address where
proceeds should be mailed. The request must be signed by you, as the owner, and
by any joint owner, collateral assignee or irrevocable beneficiary. We may also
require you to complete specific tax forms, or provide a representation that
your policy is not being exchanged for another life or annuity contract.
GENDER-NEUTRAL POLICIES
Congress and various states have from time to time considered legislation that
would require insurance rates to be the same for males and females. In
addition, employers and employee organizations should consider, in consultation
with counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of Incentive Life(R) '02 in connection with an employment-related
insurance or benefit plan. In a 1983 decision, the United States Supreme Court
held that, under Title VII, optional annuity benefits under a deferred
compensation plan could not vary on the basis of sex.
There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life(R) '02 policies sold in Montana. We will also make such
gender-neutral policies available on request in connection with certain
employee benefit plans. Cost of insurance rates applicable to a gender-neutral
policy will not be greater than the comparable male rates under a gender
specific Incentive Life(R) '02 policy.
FUTURE POLICY EXCHANGES
We may at some future time, under certain circumstances and subject to
applicable law, allow the current owner of this policy to exchange it for a
universal life policy we are then offering. The exchange may or may not be
advantageous to you, based on all of the circumstances, including a comparison
of contractual terms and conditions and charges and deductions. We will provide
additional information upon request at such time as exchanges may be permitted.
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12. More information about other matters
ABOUT OUR GENERAL ACCOUNT
This policy is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a policy's account value or any guaranteed benefits with which the policy
was issued. AXA Equitable is solely responsible to the policy owner for the
policy's account value and such guaranteed benefits. The general obligations
and any guaranteed benefits under the policy are supported by AXA Equitable's
general account and are subject to AXA Equitable's claims paying ability. An
owner should look to the financial strength of AXA Equitable for its claims
paying ability. Assets in the general account are not segregated for the
exclusive benefit of any particular policy or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the New York
State Department of Financial Services and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business.
Interests under the policies in the general account have not been registered
and are not required to be registered under the Securities Act of 1933 because
of exemptions and exclusionary provisions that apply. The general account is
not required to register as an investment company under the Investment Company
Act of 1940 and it is not registered as an investment company under the
Investment Company Act of 1940. The policy is a "covered security" under the
federal securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities law relating to the accuracy and completeness of statements
made in prospectuses.
TRANSFERS OF YOUR ACCOUNT VALUE
TRANSFERS NOT IMPLEMENTED. If a request cannot be fully administered, only the
part that is in good order will be processed. Any part of the request that
cannot be processed will be denied and an explanation will be provided to you.
This could occur, for example, where the request does not comply with our
transfer limitations, or where you request transfer of an amount greater than
that currently allocated to an investment option.
Similarly, the automatic transfer service will terminate immediately if:
(1) your amount in the EQ/Money Market option is insufficient to cover the
automatic transfer amount; (2) your policy is in a grace period; or (3) we
receive notice of the insured person's death. Similarly, the asset rebalancing
service will terminate if either (2) or (3) occurs.
DISRUPTIVE TRANSFER ACTIVITY. You should note that the policy is not designed
for professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy. The policy is not designed to
accommodate programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all policy owners.
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We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us policy
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a policy is identified in connection with potentially disruptive transfer
activity for the first time, a letter is sent to the policy owner explaining
that AXA Equitable has a policy against disruptive transfer activity and that
if such activity continues, certain transfer privileges may be eliminated. If
and when the policy owner is identified a second time as engaged in potentially
disruptive transfer activity under the policy, we currently prohibit the use of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected policy. We or a trust may change the
definition of potentially disruptive transfer activity, the monitoring
procedures and thresholds, any notification procedures, and the procedures to
restrict this activity. Any new or revised policies and procedures will apply
to all policy owners uniformly. We do not permit exceptions to our policies
restricting disruptive transfer activity.
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our policy owners, we will work with the
unaffiliated trust to review policy owner trading activity. Each trust reserves
the right to reject a transfer that it believes, in its sole discretion, is
disruptive (or potentially disruptive) to the management of one of its
portfolios. Please see the prospectuses for the trusts for more information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by policy owners. As of the date of this
prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the policy owner.
Policy owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, policy owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
policy owners may be treated differently than others, resulting in the risk
that some policy owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
TELEPHONE AND INTERNET REQUESTS
If you are a properly authorized person, you may make transfers between
investment options over the Internet as described earlier in this prospectus in
"How to make transfers" under "Transferring your money among our investment
options."
Also, you may make the following additional types of requests by calling the
number under "By Phone:" in "How to reach us" from a touch-tone phone, if the
policy is individually owned and you are the owner, or through axa.com or
us.axa.com for those outside the U.S., if you are the individual owner:
. changes of premium allocation percentages
. changes of address
. request forms and statements
. to request a policy loan (loan requests cannot be made online by corporate
policy owners)
. enroll for electronic delivery and view statements/documents online
. to pay your premium or make a loan repayment
For security purposes, all telephone requests are automatically taperecorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine.
If you wish to enroll through axa.com or us.axa.com for those outside the U.S.,
you must first agree to the terms and conditions set forth in our axa.com or
us.axa.com (for those outside the U.S.) Online Services Agreement which you can
find at our website. We will send you a confirmation letter by first class
mail. Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
transactions. We will assume that all instructions received through axa.com or
us.axa.com for those outside the U.S., are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to axa.com
or us.axa.com for those outside the U.S., if we have reason to believe the
instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet
transactions if we have reason to believe that the request compromises the
general security and/or integrity of our automated systems (see discussion of
"Disruptive transfer activity" above).
Any telephone, Internet or fax transaction request that is not completed by the
close of a business day (which is usually 4:00 p.m. Eastern Time) will be
processed as of the next business day. During times of extreme market activity,
or for other reasons, you may be unable to contact us to make a telephone or
Internet request. If this occurs, you should submit a written transaction
request to our Administrative Office. We reserve the right to discontinue
telephone or Internet transactions, or modify the procedures and conditions for
such transactions, without notifying you, at any time.
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CYBERSECURITY
We rely heavily on interconnected computer systems and digital data to conduct
our variable life insurance product business. Because our variable life
insurance product business is highly dependent upon the effective operation of
our computer systems and those of our business partners, our business is
vulnerable to disruptions from utility outages, and susceptible to operational
and information security risks resulting from information systems failure
(e.g., hardware and software malfunctions), and cyber-attacks. These risks
include, among other things, the theft, misuse, corruption and destruction of
data maintained online or digitally, interference with or denial of service,
attacks on websites and other operational disruption and unauthorized use or
abuse of confidential customer information. Such systems failures and
cyber-attacks affecting us, any third party administrator, the underlying
funds, intermediaries and other affiliated or third-party service providers may
adversely affect us and your policy account value. For instance, systems
failures and cyber-attacks may interfere with our processing of policy
transactions, including the processing of orders from our website or with the
underlying funds, impact our ability to calculate your policy account value,
cause the release and possible destruction of confidential customer or business
information, impede order processing, subject us and/or our service providers
and intermediaries to regulatory fines and financial losses and/or cause
reputational damage. Cybersecurity risks may also impact the issuers of
securities in which the underlying funds invest, which may cause the funds
underlying your policy to lose policy account value. While there can be no
assurance that we or the underlying funds or our service providers will avoid
losses affecting your policy due to cyber-attacks or information security
breaches in the future, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
SUICIDE AND CERTAIN MISSTATEMENTS
If an insured person commits suicide within certain time periods, the amount of
death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of an insured person, we will adjust
the amount of any death benefit (and certain rider benefits), as described in
the policy (or rider).
WHEN WE PAY POLICY PROCEEDS
GENERAL. We will generally pay any death benefit, surrender, withdrawal, or
loan within seven days after we receive the request and any other required
items.
CLEARANCE OF CHECKS. We reserve the right to defer payment of that portion of
your account value that is attributable to a premium payment or loan repayment
made by check for a reasonable period of time (not to exceed 15 days) to allow
the check to clear the banking system.
DELAY OF GUARANTEED INTEREST OPTION PROCEEDS. We also have the right to defer
payment or transfers of amounts out of our guaranteed interest option for up to
six months. If we delay more than 30 days in paying you such amounts, we will
pay interest of at least 3% per year from the date we receive your request.
DELAY OF VARIABLE INVESTMENT OPTION PROCEEDS. We reserve the right to defer
payment of any death benefit, transfer, loan or other distribution that is
derived from a variable investment option if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings) or trading on that
exchange is restricted; (b) the SEC has declared that an emergency exists, as a
result of which disposal of securities is not reasonably practicable or it is
not reasonably practicable to fairly determine the account value; or (c) the
law permits the delay for the protection of owners. If we need to defer
calculation of values for any of the foregoing reasons, all delayed
transactions will be processed at the next available unit values.
DELAY TO CHALLENGE COVERAGE. We may challenge the validity of your insurance
policy or any rider based on any material misstatements in an application you
have made to us. We cannot make such challenges, however, beyond certain time
limits set forth in the policy or rider. If the insured person dies within one
of these limits, we may delay payment of any proceeds until we decide whether
to challenge the policy.
CHANGES WE CAN MAKE
In addition to any of the other changes described in this prospectus, we have
the right to modify how we or Separate Account FP operate. For example, we have
the right to:
. combine two or more variable investment options or withdraw assets relating
to Incentive Life(R) '02 from one investment option and put them into
another;
. end the registration of, or re-register, Separate Account FP under the
Investment Company Act of 1940;
. operate Separate Account FP under the direction of a "committee" or
discharge such a committee at any time;
. restrict or eliminate any voting rights or privileges of policy owners (or
other persons) that affect Separate Account FP;
. operate Separate Account FP, or one or more of the variable investment
options, in any other form the law allows. This includes any form that
allows us to make direct investments, in which case we may charge Separate
Account FP an advisory fee. We may make any legal investments we wish for
Separate Account FP. In addition, we may disapprove any change in
investment advisers or in investment policy unless a law or regulation
provides differently.
If we take any action that results in a material change in the underlying
investments of a variable investment option, we will notify you to the extent
required by law. We may, for example, cause the variable investment option to
invest in a mutual fund other than, or in addition to, the Trusts. If you then
wish to transfer the amount you have in that option to another investment
option, you may do so.
We may make any changes in the policy or its riders, require additional premium
payments, or make distributions from the policy to the extent we deem necessary
to ensure that your policy qualifies or continues to qualify as life insurance
for tax purposes. Any such change will apply uniformly to all policies that are
affected. We will give you written notice of such changes. Subject to all
applicable legal requirements, we also may make other changes in the policies
that do not reduce any net cash surrender value, death benefit, account value,
or other accrued rights or benefits.
Whether to make any of the above discussed changes is generally within our
discretion, although some such changes might require us to obtain regulatory or
policy owner approval. Whether regulatory or policy owner
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MORE INFORMATION ABOUT OTHER MATTERS
approval is required would depend on the nature of the change and, in many
cases, the manner in which the change is implemented. You should not assume,
therefore, that you necessarily will have an opportunity to approve or
disapprove any such changes. We will, of course, comply with applicable legal
requirements, including notice to or approval by policy owners where required
in particular cases.
It is not possible to foresee all of the circumstances under which we may find
it necessary or appropriate to exercise our right to make changes. Such
circumstances could, however, include changes in law, or interpretations
thereof; changes in financial or investment market conditions; changes in
accepted methods of conducting operations in the relevant market; or a desire
to achieve material operating economies or efficiencies.
REPORTS WE WILL SEND YOU
Shortly after the end of each year of your policy, we will send you a report
that includes information about your policy's current death benefit, account
value, cash surrender value (i.e., account value minus any current surrender
charge), policy loans, policy transactions and amounts of charges deducted. We
will send you individual notices to confirm your premium payments, loan
repayments, transfers and certain other policy transactions. Please promptly
review all statements and confirmations and notify us immediately at
1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.) if
there are any errors.
DISTRIBUTION OF THE POLICIES
The policies are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account FP. The
offering of the policies is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Equitable Holdings, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors
are registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The policies are sold by financial professionals of AXA Advisors and its
affiliates. The policies are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with AXA
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on policies sold.
AXA Equitable may also make additional payments to the Distributors, and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. All payments will be in compliance with all applicable FINRA
rules and other laws and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its policies, none of
the compensation paid to the Distributors or the Selling broker-dealers
discussed in this section of the prospectus are imposed as separate fees or
charges under your policy. AXA Equitable, however, intends to recoup amounts it
pays for distribution and other services through the fees and charges of the
policy and payments it receives for providing administrative, distribution and
other services to the Portfolios. For information about the fees and charges
under the policy, see "Risk/benefit summary: Charges and expenses you will pay"
and "More information about certain policy charges" earlier in this prospectus.
As used below, the "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount and Distributor, among other factors.
AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors
based on premium payments made on the policies sold through AXA Advisors
("premium-based compensation"). The premium-based compensation will generally
not exceed 99% of premiums you pay up to one target premium in your policy's
first year; plus 8.5% of all other premiums you pay in your policy's first
year; plus 11% of all other premiums you pay in policy years two and later. AXA
Advisors, in turn, may pay a portion of the premium-based compensation received
from AXA Equitable to the AXA Advisors financial professional and/or the
Selling broker-dealer making the sale. In some instances, a financial
professional or a Selling broker-dealer may elect to receive premium-based
compensation on a policy in combination with ongoing annual compensation based
on a percentage of the unloaned account value of the policy sold ("asset-based
compensation"). Total compensation paid to a financial professional or a
Selling broker-dealer electing to receive both premium-based and asset-based
compensation could, over time, exceed the total compensation that would
otherwise be paid on the basis of premiums alone. The compensation paid by AXA
Advisors varies among financial professionals and among Selling broker-dealers.
AXA Advisors also pays a portion of the compensation it receives to its
managerial personnel. When a policy is sold by a Selling broker-dealer, the
Selling broker-dealer, not AXA Advisors, determines the amount and type of
compensation paid to the Selling broker-dealer's financial professional for the
sale of the policy. Therefore, you should contact your financial professional
for information about the compensation he or she receives and any related
incentives, as described below.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their policy.
AXA Advisors also pays its financial professionals and managerial personnel
other types of compensation including service fees, expense allowance payments
and health and retirement benefits. AXA Advisors also pays its financial
professionals, managerial personnel and Selling broker-dealers sales bonuses
(based on selling certain products during specified periods) and persistency
bonuses. AXA Advisors may offer sales incentive programs to financial
professionals and Selling broker-dealers who meet specified production levels
for the sales of both AXA Equitable policies and policies offered by other
companies. These incentives provide non-cash compensation such as stock options
awards and/or stock appreciation rights, expense-paid trips, expense-paid
education seminars and merchandise.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of premium-based compensation and/or asset-based
compensation for the sale of an AXA Equitable policy than it pays for the sale
of a policy or other financial product issued by a company other than AXA
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MORE INFORMATION ABOUT OTHER MATTERS
Equitable. AXA Advisors may pay higher compensation on certain products in a
class than others based on a group or sponsored arrangement, or between older
and newer versions or series of the same policy. This practice is known as
providing "differential compensation." Differential compensation may involve
other forms of compensation to AXA Advisors personnel. Certain components of
the compensation paid to managerial personnel are based on whether the sales
involve AXA Equitable policies. Managers earn higher compensation (and credits
toward awards and bonuses) if the financial professionals they manage sell a
higher percentage of AXA Equitable policies than products issued by other
companies. Other forms of compensation provided to its financial professionals
and/or managerial personnel include health and retirement benefits, expense
reimbursements, marketing allowances and premium-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
policies and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable policy over a policy or
other financial product issued by a company not affiliated with AXA Equitable.
However, under applicable rules of FINRA and other federal and state regulatory
authorities, AXA Advisors financial professionals may only recommend to you
products that they reasonably believe are suitable for you and, for certain
accounts depending on applicable rules, that are in your best interest, based
on the facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals of AXA Advisors may nonetheless face conflicts of interest
because of the differences in compensation from one product category to
another, and because of differences in compensation among products in the same
category. For more information, contact your financial professional.
AXA DISTRIBUTORS COMPENSATION. AXA Equitable pays premium-based compensation to
AXA Distributors. Premium-based compensation is paid based on AXA Equitable
policies sold through AXA Distributor's Selling broker-dealers. Premium-based
compensation will generally not exceed 99% of the premiums you pay up to one
target premium in your policy's first two year; plus 3% of all other premiums
you pay in your policy's first year; plus 3% of all other premiums you pay in
policy years two and later. AXA Equitable may substitute a form of asset-based
compensation after the first policy year. AXA Distributors, in turn, pays a
portion of the premium-based compensation and/or asset-based compensation
(together, "compensation") it receives to the Selling broker-dealer making the
sale. The compensation paid by AXA Distributors varies among Selling
broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the amount and type
of compensation paid to the Selling broker-dealer's financial professional for
the sale of the policy. Therefore, you should contact your financial
professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
These payments above also include compensation to cover operating expenses and
marketing services under the terms of AXA Equitable's distribution agreements
with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. AXA
Distributors may pay, out of its assets, certain Selling broker-dealers and
other financial intermediaries additional compensation in recognition of
services provided or expenses incurred. AXA Distributors may also pay certain
Selling broker-dealers or other financial intermediaries additional
compensation for enhanced marketing opportunities and other services (commonly
referred to as "marketing allowances"). Services for which such payments are
made may include, but are not limited to, the preferred placement of AXA
Equitable products on a company and/or product list; sales personnel training;
product training; business reporting; technological support; due diligence and
related costs; advertising, marketing and related services; conference; and/or
other support services, including some that may benefit the policy owner.
Payments may be based on ongoing sales, on the aggregate account value
attributable to policies sold through a Selling broker-dealer or such payments
may be a fixed amount. For certain selling broker-dealers, AXA Distributors
increases the marketing allowance as certain sales thresholds are met. AXA
Distributors may also make fixed payments to Selling broker-dealers, for
example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable policies exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable policies over policies and other products
issued by other companies. Not all Selling broker-dealers receive additional
payments, and the payments vary among Selling broker-dealers. The list below
includes the names of Selling broker-dealers that we are aware (as of
December 31, 2018) received additional payments. These additional payments
ranged from $536.67 to $6,370,912.47. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling broker-dealers to promote the sale of AXA
Equitable policies over policies and other products issued by other companies.
The list below includes any such Selling broker-dealer. For more information,
ask your financial professional.
1st Global Capital Corp.
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Securities, Inc.
Cambridge Investment Research
Capital Investment Group
Centaurus Financial, Inc.
CETERA Financial Group
Citigroup Global Markets, Inc.
Citizens Investment Services
Commonwealth Financial Network
Community America Financial Solution
CUNA Brokerage Services
CUSO Financial Services, L.P.
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DPL Financial Partners
Equity Services Inc.
Farmer's Financial Solution
Geneos Wealth Management
Gradient Securities, LLC
H. Beck, Inc.
H.D. Vest Investment Securities, Inc.
Huntleigh Securities Corp.
Independent Financial Group, LLC
Infinex Investments Inc.
Investment Professionals, Inc.
Janney Montgomery Scott LLC
Kestra Investment Services, LLC
Key Investment Services LLC
Ladenburg Thalmann Advisor Network, LLC
Lincoln Financial Advisors Corp.
Lincoln Financial Securities Corp.
Lincoln Investment Planning
Lion Street Financial
LPL Network
Lucia Securities, LLC
MML Investors Services, LLC
Morgan Stanley Smith Barney
Mutual of Omaha Investment Services, Inc.
Park Avenue Securities, LLC
PlanMember Securities Corp.
PNC Investments
Primerica Financial Services, Inc.
Prospera Financial Services
Questar Capital Corporation
Raymond James
RBC Capital Markets Corporation
Robert W Baird & Company
Santander Securities Corp.
SIGMA Financial Corporation
Signator Investors, Inc.
The Advisor Group (AIG)
U.S. Bank Center
UBS Financial Services, Inc.
Valmark Securities, Inc.
Voya Financial Advisors, Inc.
Wells Fargo
LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a policy owner's interest in Separate Account FP, nor would any of these
proceedings be likely to have a material adverse effect on Separate Account FP,
our ability to meet our obligations under the policies, or the distribution of
the policies.
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13. Financial statements of Separate Account FP and AXA Equitable
The financial statements of Separate Account FP, as well as the consolidated
financial statements of AXA Equitable, are in the Statement of Additional
Information ("SAI").
The financial statements of AXA Equitable have relevance for the policies only
to the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the policies. You may request an SAI by writing to our
Administrative Office or by calling 1-800-777-6510 (for U.S. residents) or
1-704-341-7000 (outside of the U.S.) and requesting to speak with a customer
service representative.
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FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE
14. Personalized illustrations
ILLUSTRATIONS OF POLICY BENEFITS
PERSONALIZED ILLUSTRATIONS. Illustrations are intended to show how different
fees, charges and rates of return can affect the values available under a
policy. Illustrations can be based upon some of the characteristics of the
insured person under your policy as well as some other policy feature choices
you make such as the face amount, death benefit option, premium payment amounts
and assumed rates of return (within limits). This type of illustration is
called a PERSONALIZED ILLUSTRATION. NO ILLUSTRATION WILL EVER SHOW YOU THE
ACTUAL VALUES AVAILABLE UNDER YOUR POLICY AT ANY GIVEN POINT IN TIME. This is
because many factors affect these values including: (i) the insured person's
characteristics; (ii) policy features you choose; (iii) actual premium payments
you make; (iv) loans or withdrawals you make; and (v) actual rates of return
(including the actual fees and expenses) of the underlying portfolios in which
your cash value is invested. Each personalized illustration is accompanied by
an explanation of the assumptions on which that illustration is based. Because,
as discussed below, these assumptions may differ considerably, you should
carefully review all of the disclosure that accompanies each illustration.
DIFFERENT KINDS OF ILLUSTRATIONS. Personalized illustrations can reflect the
investment management fees and expenses incurred in 2018 (or expected to be
incurred in 2019, if such amount is expected to be higher) of the available
underlying portfolios in different ways. An ARITHMETIC ILLUSTRATION uses the
straight average of all of the available underlying portfolios' investment
management fees and expenses. A WEIGHTED ILLUSTRATION computes the average of
investment management fees and expenses based upon the aggregate assets in the
Portfolios at the end of 2018. You may request a weighted illustration that
computes the average of investment management fees and expenses of all
portfolios. If you request, a weighted illustration can also illustrate an
assumed percentage allocation of policy account values among the available
underlying portfolios. A FUND SPECIFIC ILLUSTRATION uses only the investment
management fees and expenses of a specific underlying portfolio. When reviewing
a weighted or fund specific illustration you should keep in mind that the
values shown may be higher than the values shown in other illustrations because
the fees and expenses that are assumed may be lower than those assumed in other
illustrations. You may also request a personalized illustration of the
guaranteed interest option.
THE EFFECT OF THE EXPENSE LIMITATION ARRANGEMENTS. Personalized illustrations
reflect the expense limitation arrangements that are in effect with respect to
certain of the Portfolios. If these fees and expenses were not reduced to
reflect the expense limitation arrangements, the values in the personalized
illustrations would be lower.
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PERSONALIZED ILLUSTRATIONS
Requesting more information
The Statement of Additional Information ("SAI"), dated May 1, 2019, is
incorporated into this prospectus by reference and is available upon request
free of charge by calling our toll free number at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.) and requesting to speak with
a customer service representative. You may also request one by writing to our
operations center at P.O. Box 1047, Charlotte, NC, 28201-1047 The SAI includes
additional information about the registrant. You can make inquiries about your
policy and request personalized illustrations by calling our toll free number
at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.),
or asking your financial professional.
You may visit the SEC's web site at www.sec.gov to view the SAI and other
information (including other parts of a registration statement) that relates to
the Separate Account and the policies. You can also review and copy information
about the Separate Account, including the SAI, at the SEC's Public Reference
Room in Washington, D.C. or by electronic request at publicinfo@sec.gov or by
writing the SEC's Public Reference Section, at 100 F Street, N.E., Washington,
D.C. 20549. You may have to pay a duplicating fee. To find out more about the
Public Reference Room, call the SEC at 1-202-551-8090.
SEC File Number: 811-04335
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2019
This Statement of Additional Information ("SAI") is not a prospectus. It should
be read in conjunction with the related Incentive Life(R) '02 and Incentive
Life(R) prospectuses, dated May 1, 2019. Those prospectuses provide detailed
information concerning the policies and the variable investment options, as
well as the guaranteed interest option, that fund the policies. Each variable
investment option is a subaccount of AXA Equitable's Separate Account FP.
Separate Account FP's predecessor was established on April 19, 1985 by our then
wholly owned subsidiary, Equitable Variable Life Insurance Company. We
established our Separate Account FP under New York Law on September 21, 1995.
When Equitable Variable Life Insurance Company merged into AXA Equitable, as of
January 1, 1997, our Separate Account FP succeeded to all the assets,
liabilities and operations of its predecessor. The guaranteed interest option
is part of AXA Equitable's general account. Definitions of special terms used
in the SAI are found in the prospectuses.
A copy of each prospectus is available free of charge by writing the
Administrative office (P.O. Box 1047, Charlotte, North Carolina 28201-1047), by
calling 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the
U.S.) or by contacting your financial professional.
TABLE OF CONTENTS
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
|
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
|
Copyright 2019. AXA Equitable Life Insurance Company, New York, New York 10104.
All rights reserved. Incentive Life(R) '02 and Incentive Life(R) are registered
service marks of AXA Equitable Life Insurance Company.
#633432
WHO IS AXA EQUITABLE?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
WAYS WE PAY POLICY PROCEEDS
The payee for death benefit or other policy proceeds (e.g., upon surrenders)
may name a successor to receive any amounts that we still owe following the
payee's death. Otherwise, we will pay any such amounts to the payee's estate.
We must approve any payment arrangements that involve more than one payment
option, or a payee who is not a natural person (for example, a corporation), or
a payee who is a fiduciary. Also, the details of all payment arrangements will
be subject to our rules at the time the arrangements are selected and take
effect. This includes rules on the minimum amount we will pay under an option,
minimum amounts for installment payments, withdrawal or commutation rights
(your rights to receive payments over time, for which we may offer a lump sum
payment), the naming of payees, and the methods for proving the payee's age and
continued survival.
DISTRIBUTION OF THE POLICIES
AXA Advisors distributes these policies pursuant to a selling agreement, dated
as of May 1, 1994, as amended, between AXA Advisors and AXA Equitable. For each
of the years 2018, 2017 and 2016, AXA Advisors was paid an administrative
services fee of $0, $0 and $0, respectively. AXA Equitable paid AXA Advisors as
the distributors of certain policies, including these policies, and as the
principal underwriter of several AXA Equitable separate accounts, including
Separate Account FP, $525,064,725 in 2018, $521,468,953 in 2017 and
$542,160,541 in 2016. Of these amounts, for each of these three years, AXA
Advisors retained $242,921,348, $267,653,575 and $281,641,950, respectively.
Under a distribution agreement between AXA Distributors and AXA Equitable and
certain of AXA Equitable's separate accounts, including Separate Account FP,
AXA Equitable paid AXA Distributors, (or EDI, as applicable) as the distributor
of certain policies, including these policies, and as the principal underwriter
of several AXA Equitable separate accounts, including Separate Account FP,
$466,293,494 in 2018, $480,771,028 in 2017 and $507,645,857 in 2016. Of these
amounts, for each of these three years, AXA Distributors (or EDI, as
applicable) retained $0, $0 and $7,262,699, respectively.
UNDERWRITING A POLICY
The underwriting of a policy determines: (1) whether the policy application
will be approved or disapproved; and (2) into what premium class the insured
should be placed. Risk factors that are considered for these determinations
are: (i) the insured's age; (ii) whether the insured uses tobacco or not; and
(iii) the admitted medical history of the insured. Many other factors make up
the overall evaluation of an individual's assessment for insurance, but all of
these items are determined through the questions asked during the application
process.
We base guaranteed cost of insurance rates under the policy on the 1980
Commissioner's Standard Ordinary Mortality Tables.
INSURANCE REGULATION THAT APPLIES TO AXA EQUITABLE
We are regulated and supervised by the New York State Department of Financial
Services. In addition, we are subject to the insurance laws and regulations in
every state where we sell policies. We submit annual reports on our operations
and finances to insurance officials in all of these states. The officials are
responsible for reviewing our reports to see that we are financially sound.
Such regulation, however, does not guarantee or provide absolute assurance of
our soundness.
CUSTODIAN
AXA Equitable is the custodian for shares of the Trusts owned by Separate
Account FP. AXA Equitable's principal offices are located at 1290 Avenue of the
Americas, New York, NY 10104.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements of the Separate Account at December 31, 2018 and for
each of the two years in the period ended December 31, 2018, and the
consolidated financial statements and financial statement schedules of AXA
Equitable at December 31, 2018 and 2017 and for each of the three years in the
period ended December 31, 2018 included in this SAI have been so included in
reliance on the reports of PricewaterhouseCoopers LLP, an independent
registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
PricewaterhouseCoopers LLP provides independent audit services and certain
other non-audit services to AXA Equitable as permitted by the applicable SEC
independence rules, and as disclosed in AXA Equitable's Form 10-K.
PricewaterhouseCoopers LLP's address is 300 Madison Avenue, New York, New York
10017.
FINANCIAL STATEMENTS
The consolidated financial statements of AXA Equitable included herein should
be considered only as bearing upon the ability of AXA Equitable to meet its
obligations under the policies.
2
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm............... FSA-2
Financial Statements:
Statements of Assets and Liabilities, December 31, 2018............ FSA-4
Statements of Operations for the Year or Period Ended December 31,
2018............................................................. FSA-40
Statements of Changes in Net Assets for the Years or Periods Ended
December 31, 2018 and 2017....................................... FSA-59
Notes to Financial Statements...................................... FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
Report of Independent Registered Public Accounting Firm............... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 2018 and 2017....... F-2
Consolidated Statements of Income (Loss), for the Years Ended
December 31, 2018, 2017 and 2016................................. F-4
Consolidated Statements of Comprehensive Income (Loss), for the
Years Ended December 31, 2018, 2017 and 2016..................... F-5
Consolidated Statements of Equity, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-6
Consolidated Statements of Cash Flows, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-7
Notes to Consolidated Financial Statements......................... F-10
Audited Consolidated Financial Statement Schedules................. F-100
|
FSA-1 #673845
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of AXA Equitable Life Insurance Company
and the Contractowners of Separate Account FP of AXA Equitable Life Insurance
Company
OPINIONS ON THE FINANCIAL STATEMENTS
We have audited the accompanying statements of assets and liabilities of each
of the subaccounts of Separate Account FP of AXA Equitable Life Insurance
Company indicated in the table below as of December 31, 2018, and the related
statements of operations and of changes in net assets for each of the periods
indicated in the table below, including the related notes (collectively
referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of
each of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company as of December 31, 2018, and the results of each of their operations
and the changes in each of their net assets for the periods indicated in the
table below, in conformity with accounting principles generally accepted in the
United States of America.
1290 VT CONVERTIBLE SECURITIES/(1)/ EQ/BLACKROCK BASIC VALUE EQUITY/(1)/
1290 VT DOUBLELINE DYNAMIC EQ/CAPITAL GUARDIAN RESEARCH/(1)/
ALLOCATION/(1)/
1290 VT DOUBLELINE OPPORTUNISTIC EQ/COMMON STOCK INDEX/(1)/
BOND/(3)/
1290 VT EQUITY INCOME/(1)/ EQ/CORE BOND INDEX/(1)/
1290 VT GAMCO MERGERS & EQ/EQUITY 500 INDEX/(1)/
ACQUISITIONS/(1)/
1290 VT GAMCO SMALL COMPANY VALUE/(1)/ EQ/FIDELITY INSTITUTIONAL AM/SM/
LARGE CAP/(2)/
1290 VT SMARTBETA EQUITY/(1)/ EQ/FRANKLIN RISING DIVIDENDS/(2)/
1290 VT SOCIALLY RESPONSIBLE/(1)/ EQ/FRANKLIN STRATEGIC INCOME/(2)/
ALL ASSET GROWTH-ALT 20/(1)/ EQ/GLOBAL BOND PLUS/(1)/
AMERICAN FUNDS INSURANCE SERIES(R) EQ/GOLDMAN SACHS MID CAP VALUE/(2)/
GLOBAL SMALL
CAPITALIZATION FUND/SM(1)/ EQ/INTERMEDIATE GOVERNMENT BOND/(1)/
AMERICAN FUNDS INSURANCE SERIES(R)
NEW WORLD FUND(R)/(1)/ EQ/INTERNATIONAL EQUITY INDEX/(1)/
AXA 400 MANAGED VOLATILITY/(1)/ EQ/INVESCO COMSTOCK/(1)/
AXA 500 MANAGED VOLATILITY/(1)/ EQ/INVESCO GLOBAL REAL ESTATE/(2)/
AXA 2000 MANAGED VOLATILITY/(1)/ EQ/INVESCO INTERNATIONAL GROWTH/(2)/
AXA AGGRESSIVE ALLOCATION/(1)/ EQ/IVY ENERGY/(2)/
AXA BALANCED STRATEGY/(1)/ EQ/IVY MID CAP GROWTH/(2)/
AXA CONSERVATIVE ALLOCATION/(1)/ EQ/IVY SCIENCE AND TECHNOLOGY/(2)/
AXA CONSERVATIVE GROWTH STRATEGY/(1)/ EQ/JPMORGAN VALUE OPPORTUNITIES/(1)/
AXA CONSERVATIVE STRATEGY/(1)/ EQ/LARGE CAP GROWTH INDEX/(1)/
AXA CONSERVATIVE-PLUS ALLOCATION/(1)/ EQ/LARGE CAP VALUE INDEX/(1)/
AXA GLOBAL EQUITY MANAGED
VOLATILITY/(1)/ EQ/LAZARD EMERGING MARKETS EQUITY/(2)/
AXA GROWTH STRATEGY/(1)/ EQ/MFS INTERNATIONAL GROWTH/(1)/
AXA INTERNATIONAL CORE MANAGED
VOLATILITY/(1)/ EQ/MFS INTERNATIONAL VALUE/(2)/
AXA INTERNATIONAL MANAGED
VOLATILITY/(1)/ EQ/MFS UTILITIES SERIES/(2)/
AXA INTERNATIONAL VALUE MANAGED
VOLATILITY/(1)/ EQ/MID CAP INDEX/(1)/
AXA LARGE CAP CORE MANAGED
VOLATILITY/(1)/ EQ/MONEY MARKET/(1)/
AXA LARGE CAP GROWTH MANAGED
VOLATILITY/(1)/ EQ/PIMCO REAL RETURN/(2)/
AXA LARGE CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO TOTAL RETURN/(2)/
AXA MID CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO ULTRA SHORT BOND/(1)/
AXA MODERATE ALLOCATION/(1)/ EQ/QUALITY BOND PLUS/(1)/
AXA MODERATE GROWTH STRATEGY/(1)/ EQ/SMALL COMPANY INDEX/(1)/
AXA MODERATE-PLUS ALLOCATION/(1)/ EQ/T. ROWE PRICE GROWTH STOCK/(1)/
AXA/AB SMALL CAP GROWTH/(1)/ EQ/T. ROWE PRICE HEALTH SCIENCES/(2)/
AXA/CLEARBRIDGE LARGE CAP GROWTH/(1)/ EQ/UBS GROWTH & INCOME/(1)/
AXA/JANUS ENTERPRISE/(1)/ FIDELITY(R) VIP ASSET MANAGER: GROWTH
PORTFOLIO/(1)/
AXA/LOOMIS SAYLES GROWTH/(1)/ FIDELITY(R) VIP EQUITY-INCOME
PORTFOLIO/(1)/
BLACKROCK GLOBAL ALLOCATION V.I. FIDELITY(R) VIP GOVERNMENT MONEY
FUND/(1)/ MARKET PORTFOLIO/(1)/
CHARTER/SM/ MULTI-SECTOR BOND/(1)/ FIDELITY(R) VIP GROWTH & INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP GROWTH/(1)/ FIDELITY(R) VIP HIGH INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP VALUE/(1)/ FIDELITY(R) VIP INVESTMENT GRADE BOND
PORTFOLIO/(1)/
CLEARBRIDGE VARIABLE MID CAP FIDELITY(R) VIP MID CAP PORTFOLIO/(1)/
PORTFOLIO/(1)/
|
EQ/AMERICAN CENTURY MID CAP VALUE/(2)/ FIDELITY(R) VIP VALUE PORTFOLIO/(1)/
FSA-2
FIDELITY(R) VIP VALUE STRATEGIES MULTIMANAGER TECHNOLOGY/(1)/
PORTFOLIO/(1)/
FRANKLIN MUTUAL SHARES VIP FUND/(1)/ NATURAL RESOURCES PORTFOLIO/(1)/
FRANKLIN SMALL CAP VALUE VIP FUND/(1)/ PIMCO COMMODITYREALRETURN(R) STRATEGY
PORTFOLIO/(1)/
INVESCO V.I. DIVERSIFIED DIVIDEND T. ROWE PRICE EQUITY INCOME
FUND/(1)/ PORTFOLIO/(1)/
INVESCO V.I. MID CAP CORE EQUITY TARGET 2015 ALLOCATION/(1)/
FUND/(1)/
INVESCO V.I. SMALL CAP EQUITY TARGET 2025 ALLOCATION/(1)/
FUND/(1)/
IVY VIP GLOBAL EQUITY INCOME/(1)/ TARGET 2035 ALLOCATION/(1)/
IVY VIP HIGH INCOME/(1)/ TARGET 2045 ALLOCATION/(1)/
IVY VIP SMALL CAP GROWTH/(1)/ TARGET 2055 ALLOCATION/(1)/
TEMPLETON DEVELOPING MARKETS VIP
MFS(R) INVESTORS TRUST SERIES/(1)/ FUND/(1)/
MFS(R) MASSACHUSETTS INVESTORS GROWTH TEMPLETON GLOBAL BOND VIP FUND/(1)/
STOCK PORTFOLIO/(1)/
MULTIMANAGER AGGRESSIVE EQUITY/(1)/ TEMPLETON GROWTH VIP FUND/(1)/
VANECK VIP GLOBAL HARD ASSETS
MULTIMANAGER CORE BOND/(1)/ FUND/(1)/
VANGUARD VARIABLE INSURANCE FUND --
MULTIMANAGER MID CAP GROWTH/(1)/ EQUITY INDEX PORTFOLIO/(1)/
MULTIMANAGER MID CAP VALUE/(1)/
|
(1)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for each of the two years
in the period ended December 31,
2018.
(2)Statements of operations and of
changes in net assets for the
period October 22, 2018
(commencement of operations)
through December 31, 2018.
(3)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for the year ended
December 31, 2018 and the period
May 19, 2017 (commencement of
operations) through December 31,
2017.
BASIS FOR OPINIONS
These financial statements are the responsibility of AXA Equitable Life
Insurance Company management. Our responsibility is to express an opinion on
the financial statements of each of the subaccounts in Separate Account FP of
AXA Equitable Life Insurance Company based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to each
of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of investments owned as of December 31, 2018 by
correspondence with the transfer agents of the investee mutual funds or the
investee mutual funds directly. We believe that our audits provide a reasonable
basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
April 15, 2019
|
We have served as the auditor of one or more of the subaccounts in Separate
Account FP of AXA Equitable Life Insurance Company since 1993.
FSA-3
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
1290 VT 1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,204,221 $10,754,358 $606,762 $19,286,327 $15,090,075
Receivable for shares of the Portfolios sold................ 19 28 4 -- 61,315
Receivable for policy-related transactions.................. -- -- -- 10,247 --
---------- ----------- -------- ----------- -----------
Total assets............................................. 1,204,240 10,754,386 606,766 19,296,574 15,151,390
---------- ----------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 10,261 --
Payable for policy-related transactions..................... 16 19 2 -- 61,317
---------- ----------- -------- ----------- -----------
Total liabilities........................................ 16 19 2 10,261 61,317
---------- ----------- -------- ----------- -----------
NET ASSETS.................................................. $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,204,224 $10,754,367 $606,764 $19,285,513 $15,089,316
Retained by AXA Equitable in Separate Account FP............ -- -- -- 800 757
---------- ----------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $1,355,418 $11,256,372 $623,632 $28,317,391 $16,528,990
|
1290 VT
GAMCO SMALL
COMPANY VALUE*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $162,891,475
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 45,919
------------
Total assets............................................. 162,937,394
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 45,324
Payable for policy-related transactions..................... --
------------
Total liabilities........................................ 45,324
------------
NET ASSETS.................................................. $162,892,070
============
NET ASSETS:
Accumulation unit values.................................... $162,891,215
Retained by AXA Equitable in Separate Account FP............ 855
------------
TOTAL NET ASSETS............................................ $162,892,070
============
Investments in shares of the Portfolios, at cost............ $169,324,722
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-4
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R) GLOBAL
1290 VT 1290 VT SMALL
SMARTBETA SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
---------- ------------ -------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,272,599 $2,801,064 $29,859,033 $8,267,438
Receivable for shares of the Portfolios sold................ 11 -- 2,560 --
Receivable for policy-related transactions.................. -- 11,996 4,376 277
---------- ---------- ----------- ----------
Total assets............................................. 1,272,610 2,813,060 29,865,969 8,267,715
---------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 11,996 -- 278
Payable for policy-related transactions..................... 8 -- -- --
---------- ---------- ----------- ----------
Total liabilities........................................ 8 11,996 -- 278
---------- ---------- ----------- ----------
NET ASSETS.................................................. $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,272,602 $2,636,981 $29,858,581 $8,267,201
Retained by AXA Equitable in Separate Account FP............ -- 164,083 7,388 236
---------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $1,399,627 $2,961,203 $31,570,121 $8,926,526
|
AMERICAN
FUNDS
INSURANCE AXA 400
SERIES(R) NEW MANAGED
WORLD FUND(R) VOLATILITY*
------------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $19,112,159 $4,405,240
Receivable for shares of the Portfolios sold................ -- --
Receivable for policy-related transactions.................. 44,611 1,038
----------- ----------
Total assets............................................. 19,156,770 4,406,278
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 43,662 997
Payable for policy-related transactions..................... -- --
----------- ----------
Total liabilities........................................ 43,662 997
----------- ----------
NET ASSETS.................................................. $19,113,108 $4,405,281
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $19,113,108 $4,405,281
Retained by AXA Equitable in Separate Account FP............ -- --
----------- ----------
TOTAL NET ASSETS............................................ $19,113,108 $4,405,281
=========== ==========
Investments in shares of the Portfolios, at cost............ $20,591,683 $5,203,143
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-5
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA 500 AXA 2000 AXA AXA AXA
MANAGED MANAGED AGGRESSIVE BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- ------------ ----------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $10,224,920 $4,136,561 $135,970,073 $38,375,203 $27,196,469
Receivable for shares of the Portfolios sold................ -- -- -- -- 62,943
Receivable for policy-related transactions.................. 2,188 1,346 7,096 2,629 --
----------- ---------- ------------ ----------- -----------
Total assets............................................. 10,227,108 4,137,907 135,977,169 38,377,832 27,259,412
----------- ---------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 2,131 1,321 7,096 2,629 --
Payable for policy-related transactions..................... -- -- -- -- 62,943
----------- ---------- ------------ ----------- -----------
Total liabilities........................................ 2,131 1,321 7,096 2,629 62,943
----------- ---------- ------------ ----------- -----------
NET ASSETS.................................................. $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $10,224,977 $4,136,586 $135,912,188 $38,340,399 $27,193,590
Retained by AXA Equitable in Separate Account FP............ -- -- 57.885 34,804 2,879
----------- ---------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $10,170,394 $4,735,803 $145,357,750 $38,565,642 $29,051,705
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $7,082,064
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 23
----------
Total assets............................................. 7,082,087
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 23
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 23
----------
NET ASSETS.................................................. $7,082,064
==========
NET ASSETS:
Accumulation unit values.................................... $7,082,059
Retained by AXA Equitable in Separate Account FP............ 5
----------
TOTAL NET ASSETS............................................ $7,082,064
==========
Investments in shares of the Portfolios, at cost............ $7,113,610
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-6
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA AXA
AXA CONSERVATIVE- AXA GLOBAL AXA INTERNATIONAL
CONSERVATIVE PLUS EQUITY MANAGED GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- -------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,968,614 $29,777,949 $120,128,671 $58,504,234 $51,292,032
Receivable for shares of the Portfolios sold................ 412 -- -- -- 36,524
Receivable for policy-related transactions.................. -- 4,051 6,799 50,086 --
---------- ----------- ------------ ----------- -----------
Total assets............................................. 2,969,026 29,782,000 120,135,470 58,554,320 51,328,556
---------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 39,707 6,810 50,086 --
Payable for policy-related transactions..................... 412 -- -- -- 36,649
---------- ----------- ------------ ----------- -----------
Total liabilities........................................ 412 39,707 6,810 50,086 36,649
---------- ----------- ------------ ----------- -----------
NET ASSETS.................................................. $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,968,614 $29,662,597 $120,081,031 $58,504,221 $51,221,536
Retained by AXA Equitable in Separate Account FP............ -- 79,696 47,629 13 70,371
---------- ----------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $3,058,866 $32,222,508 $104,477,256 $56,283,009 $51,692,566
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,515,456
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 164
----------
Total assets............................................. 3,515,620
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 159
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 159
----------
NET ASSETS.................................................. $3,515,461
==========
NET ASSETS:
Accumulation unit values.................................... $3,515,461
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $3,515,461
==========
Investments in shares of the Portfolios, at cost............ $3,783,719
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-7
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA
INTERNATIONAL AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP
VALUE MANAGED CORE MANAGED GROWTH MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- -------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $66,956,565 $27,761,351 $243,752,948 $343,916,122
Receivable for shares of the Portfolios sold................ 194,166 8,604 106,987 --
Receivable for policy-related transactions.................. -- -- -- --
----------- ----------- ------------ ------------
Total assets............................................. 67,150,731 27,769,955 243,859,935 343,916,122
----------- ----------- ------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,421
Payable for policy-related transactions..................... 194,254 8,789 107,354 6,125
----------- ----------- ------------ ------------
Total liabilities........................................ 194,254 8,789 107,354 7,546
----------- ----------- ------------ ------------
NET ASSETS.................................................. $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
NET ASSETS:
Accumulation unit values.................................... $66,934,190 $27,717,126 $243,596,271 $343,556,995
Accumulation nonunitized.................................... -- -- -- 218,684
Retained by AXA Equitable in Separate Account FP............ 22,287 44,040 156,310 132,897
----------- ----------- ------------ ------------
TOTAL NET ASSETS............................................ $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
Investments in shares of the Portfolios, at cost............ $69,299,707 $25,191,142 $178,554,968 $275,592,613
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $171,153,729 $803,396,725
Receivable for shares of the Portfolios sold................ -- 479,394
Receivable for policy-related transactions.................. 4,982 --
------------ ------------
Total assets............................................. 171,158,711 803,876,119
------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 5,790 --
Payable for policy-related transactions..................... -- 1,449,160
------------ ------------
Total liabilities........................................ 5,790 1,449,160
------------ ------------
NET ASSETS.................................................. $171,152,921 $802,426,959
============ ============
NET ASSETS:
Accumulation unit values.................................... $171,111,512 $799,703,084
Accumulation nonunitized.................................... -- 2,568,229
Retained by AXA Equitable in Separate Account FP............ 41,409 155,646
------------ ------------
TOTAL NET ASSETS............................................ $171,152,921 $802,426,959
============ ============
Investments in shares of the Portfolios, at cost............ $137,142,391 $856,446,772
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-8
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $106,743,471 $392,177,617 $186,463,102 $76,684,466 $41,614,072
Receivable for shares of the Portfolios sold................ -- -- 140,609 285,796 64,769
Receivable for policy-related transactions.................. 4,501 301,098 -- -- --
------------ ------------ ------------ ----------- -----------
Total assets............................................. 106,747,972 392,478,715 186,603,711 76,970,262 41,678,841
------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 4,489 300,966 -- -- --
Payable for policy-related transactions..................... -- -- 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
Total liabilities........................................ 4,489 300,966 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
NET ASSETS.................................................. $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $106,743,483 $392,148,528 $186,423,005 $76,622,908 $41,613,198
Retained by AXA Equitable in Separate Account FP............ -- 29,221 40,036 61,543 857
------------ ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $103,054,942 $421,436,546 $209,272,493 $82,891,129 $45,005,881
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $39,626,380
Receivable for shares of the Portfolios sold................ 174,064
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 39,800,444
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 174,085
-----------
Total liabilities........................................ 174,085
-----------
NET ASSETS.................................................. $39,626,359
===========
NET ASSETS:
Accumulation unit values.................................... $39,624,999
Retained by AXA Equitable in Separate Account FP............ 1,360
-----------
TOTAL NET ASSETS............................................ $39,626,359
===========
Investments in shares of the Portfolios, at cost............ $38,585,633
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-9
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM/ CHARTER/SM/ CHARTER/SM/ CLEARBRIDGE
ALLOCATION V.I. MULTI-SECTOR SMALL CAP SMALL CAP VARIABLE MID
FUND BOND* GROWTH* VALUE* CAP PORTFOLIO
--------------- ------------ ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,436,712 $68,050,855 $12,513,905 $24,463,483 $617,285
Receivable for shares of the Portfolios sold................ 341,752 34,931 3,276 -- --
Receivable for policy-related transactions.................. -- -- -- 6,943 7,424
---------- ----------- ----------- ----------- --------
Total assets............................................. 5,778,464 68,085,786 12,517,181 24,470,426 624,709
---------- ----------- ----------- ----------- --------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 7,588 6,892
Payable for policy-related transactions..................... 341,752 76,375 3,275 -- --
---------- ----------- ----------- ----------- --------
Total liabilities........................................ 341,752 76,375 3,275 7,588 6,892
---------- ----------- ----------- ----------- --------
NET ASSETS.................................................. $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
NET ASSETS:
Accumulation unit values.................................... $5,433,945 $67,500,179 $12,512,038 $24,397,651 $617,817
Accumulation nonunitized.................................... -- 456,132 -- -- --
Retained by AXA Equitable in Separate Account FP............ 2,767 53,100 1,868 65,187 --
---------- ----------- ----------- ----------- --------
TOTAL NET ASSETS............................................ $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
Investments in shares of the Portfolios, at cost............ $5,914,474 $77,505,553 $12,661,900 $20,266,042 $715,294
|
EQ/AMERICAN
CENTURY MID
CAP VALUE*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $48,114,990
Receivable for shares of the Portfolios sold................ 186,640
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 48,301,630
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 189,424
-----------
Total liabilities........................................ 189,424
-----------
NET ASSETS.................................................. $48,112,206
===========
NET ASSETS:
Accumulation unit values.................................... $48,110,561
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 1,645
-----------
TOTAL NET ASSETS............................................ $48,112,206
===========
Investments in shares of the Portfolios, at cost............ $53,974,547
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-10
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND EQ/EQUITY 500
EQUITY* RESEARCH* STOCK INDEX* INDEX* INDEX*
------------ ------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $183,322,625 $112,258,595 $1,485,794,702 $49,589,275 $802,858,916
Receivable for shares of the Portfolios sold................ 183,839 97,290 11,799 60,435 2,790,968
------------ ------------ -------------- ----------- ------------
Total assets............................................. 183,506,464 112,355,885 1,485,806,501 49,649,710 805,649,884
------------ ------------ -------------- ----------- ------------
LIABILITIES:
Payable for policy-related transactions..................... 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
Total liabilities........................................ 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
NET ASSETS.................................................. $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
NET ASSETS:
Accumulation unit values.................................... $183,243,930 $112,084,507 $1,481,506,448 $49,571,977 $802,250,312
Accumulation nonunitized.................................... -- -- 3,631,059 -- 334,777
Retained by AXA Equitable in Separate Account FP............ 77,987 173,753 484,768 17,405 33,724
------------ ------------ -------------- ----------- ------------
TOTAL NET ASSETS............................................ $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
Investments in shares of the Portfolios, at cost............ $156,473,871 $ 89,611,072 $1,047,182,530 $50,957,446 $617,308,124
|
EQ/FIDELITY
INSTITUTIONAL
AM/SM/ LARGE CAP*
---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 93,729,045
Receivable for shares of the Portfolios sold................ 8,167
------------
Total assets............................................. 93,737,212
------------
LIABILITIES:
Payable for policy-related transactions..................... 8,877
------------
Total liabilities........................................ 8,877
------------
NET ASSETS.................................................. $ 93,728,335
============
NET ASSETS:
Accumulation unit values.................................... $ 93,722,862
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 5,473
------------
TOTAL NET ASSETS............................................ $ 93,728,335
============
Investments in shares of the Portfolios, at cost............ $105,758,670
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-11
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
EQ/FRANKLIN STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
RISING DIVIDENDS* INCOME* BOND PLUS* VALUE* BOND*
----------------- ----------- ----------- ------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $52,115,217 $33,501,099 $16,637,917 $8,496,816 $48,231,562
Receivable for shares of the Portfolios sold................ 58,093 2,051 10,847 -- 51,127
Receivable for policy-related transactions.................. -- -- -- 1,138 --
----------- ----------- ----------- ---------- -----------
Total assets............................................. 52,173,310 33,503,150 16,648,764 8,497,954 48,282,689
----------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,894 --
Payable for policy-related transactions..................... 64,065 4,778 10,846 -- 54,981
----------- ----------- ----------- ---------- -----------
Total liabilities........................................ 64,065 4,778 10,846 1,894 54,981
----------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $52,109,245 $33,498,372 $16,636,965 $8,495,754 $48,114,681
Accumulation nonunitized.................................... -- -- -- -- 95,850
Retained by AXA Equitable in Separate Account FP............ -- -- 953 306 17,177
----------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $56,311,179 $34,155,258 $17,492,519 $9,346,271 $48,626,417
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $272,536,309
Receivable for shares of the Portfolios sold................ 3,135
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 272,539,444
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 111,848
------------
Total liabilities........................................ 111,848
------------
NET ASSETS.................................................. $272,427,596
============
NET ASSETS:
Accumulation unit values.................................... $272,107,156
Accumulation nonunitized.................................... 252,495
Retained by AXA Equitable in Separate Account FP............ 67,945
------------
TOTAL NET ASSETS............................................ $272,427,596
============
Investments in shares of the Portfolios, at cost............ $303,604,762
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-12
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL EQ/ EQ/IVY MID CAP
COMSTOCK* ESTATE* GROWTH* IVY ENERGY* GROWTH*
----------- ----------- ------------- ----------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $25,600,527 $36,373,951 $32,106,216 $10,240,782 $33,209,780
Receivable for shares of the Portfolios sold................ 6,756 -- 41,550 -- 125,792
Receivable for policy-related transactions.................. -- 2,914 -- 10,220 --
----------- ----------- ----------- ----------- -----------
Total assets............................................. 25,607,283 36,376,865 32,147,766 10,251,002 33,335,572
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 10,767 -- 11,900 --
Payable for policy-related transactions..................... 6,756 -- 32,475 -- 130,843
----------- ----------- ----------- ----------- -----------
Total liabilities........................................ 6,756 10,767 32,475 11,900 130,843
----------- ----------- ----------- ----------- -----------
NET ASSETS.................................................. $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $25,593,350 $36,366,098 $32,099,746 $10,239,102 $33,195,999
Retained by AXA Equitable in Separate Account FP............ 7,177 -- 15,545 -- 8,730
----------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS............................................ $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $25,595,432 $37,062,268 $33,851,043 $14,738,486 $36,402,660
|
EQ/IVY SCIENCE
AND
TECHNOLOGY*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $32,657,031
Receivable for shares of the Portfolios sold................ 179,388
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 32,836,419
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 183,662
-----------
Total liabilities........................................ 183,662
-----------
NET ASSETS.................................................. $32,652,757
===========
NET ASSETS:
Accumulation unit values.................................... $32,652,757
Retained by AXA Equitable in Separate Account FP............ --
-----------
TOTAL NET ASSETS............................................ $32,652,757
===========
Investments in shares of the Portfolios, at cost............ $36,542,551
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-13
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EQ/LARGE EMERGING EQ/MFS
VALUE EQ/LARGE CAP CAP VALUE MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* INDEX* EQUITY* GROWTH*
-------------- ------------- ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $43,550,400 $148,283,162 $24,698,977 $52,605,449 $46,696,823
Receivable for shares of the Portfolios sold................ 1,933 182,171 2,067 281,649 --
Receivable for policy-related transactions.................. -- -- -- -- 38,630
----------- ------------ ----------- ----------- -----------
Total assets............................................. 43,552,333 148,465,333 24,701,044 52,887,098 46,735,453
----------- ------------ ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- -- 38,634
Payable for policy-related transactions..................... 2,330 182,473 2,076 272,772 --
----------- ------------ ----------- ----------- -----------
Total liabilities........................................ 2,330 182,473 2,076 272,772 38,634
----------- ------------ ----------- ----------- -----------
NET ASSETS.................................................. $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $43,438,530 $148,201,129 $24,683,127 $52,589,118 $46,696,549
Retained by AXA Equitable in Separate Account FP............ 111,473 81,731 15,841 25,208 270
----------- ------------ ----------- ----------- -----------
TOTAL NET ASSETS............................................ $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $47,970,016 $128,278,230 $26,159,500 $53,319,248 $49,439,048
|
EQ/MFS
INTERNATIONAL
VALUE*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $102,842,684
Receivable for shares of the Portfolios sold................ 254,123
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 103,096,807
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 253,113
------------
Total liabilities........................................ 253,113
------------
NET ASSETS.................................................. $102,843,694
============
NET ASSETS:
Accumulation unit values.................................... $102,836,986
Retained by AXA Equitable in Separate Account FP............ 6,708
------------
TOTAL NET ASSETS............................................ $102,843,694
============
Investments in shares of the Portfolios, at cost............ $107,419,572
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-14
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/MFS
UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL EQ/PIMCO TOTAL
SERIES* INDEX* MARKET* RETURN* RETURN*
---------- ------------ ------------ ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,291,837 $134,225,945 $148,888,985 $24,188,753 $68,230,532
Receivable for shares of the Portfolios sold................ 92,913 -- -- -- 314,118
Receivable for policy-related transactions.................. -- 1,843 -- 209,393 --
---------- ------------ ------------ ----------- -----------
Total assets............................................. 2,384,750 134,227,788 148,888,985 24,398,146 68,544,650
---------- ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 1,889 3,247,144 213,550 --
Payable for policy-related transactions..................... 92,846 -- 1,281,097 -- 316,513
---------- ------------ ------------ ----------- -----------
Total liabilities........................................ 92,846 1,889 4,528,241 213,550 316,513
---------- ------------ ------------ ----------- -----------
NET ASSETS.................................................. $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,291,768 $134,200,303 $143,929,769 $24,169,439 $68,222,803
Accumulation nonunitized.................................... -- -- 421,416 -- --
Retained by AXA Equitable in Separate Account FP............ 136 25,596 9,559 15,157 5,334
---------- ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $2,380,927 $134,601,176 $148,886,123 $24,267,636 $67,820,014
|
EQ/PIMCO ULTRA
SHORT BOND*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $33,385,501
Receivable for shares of the Portfolios sold................ 82,638
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 33,468,139
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 82,639
-----------
Total liabilities........................................ 82,639
-----------
NET ASSETS.................................................. $33,385,500
===========
NET ASSETS:
Accumulation unit values.................................... $33,383,383
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 2,117
-----------
TOTAL NET ASSETS............................................ $33,385,500
===========
Investments in shares of the Portfolios, at cost............ $33,738,915
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-15
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES* & INCOME*
-------------- -------------- ------------ ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $ 41,752,769 $ 89,366,351 $114,532,018 $7,851,801 $11,348,324
Receivable for shares of the Portfolios sold...... 35,720 -- 13,861 196,412 --
Receivable for policy-related transactions........ -- 66,478 -- -- 8,078
-------------- ------------ ------------ ---------- -----------
Total assets................................... 41,788,489 89,432,829 114,545,879 8,048,213 11,356,402
-------------- ------------ ------------ ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... -- 66,492 -- -- 8,078
Payable for policy-related transactions........... 37,190 -- 12,308 195,087 --
-------------- ------------ ------------ ---------- -----------
Total liabilities.............................. 37,190 66,492 12,308 195,087 8,078
-------------- ------------ ------------ ---------- -----------
NET ASSETS........................................ $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
NET ASSETS:
Accumulation unit values.......................... $41,626,950.36 $ 89,337,709 $114,375,678 $7,850,572 $11,348,285
Accumulation nonunitized.......................... 53,419 -- -- -- --
Retained by AXA Equitable in Separate Account FP.. 70,930 28,628 157,893 2,554 39
-------------- ------------ ------------ ---------- -----------
TOTAL NET ASSETS.................................. $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
Investments in shares of the Portfolios, at cost.. $ 43,967,750 $105,793,037 $108,501,498 $8,675,143 $13,609,331
|
FIDELITY(R) VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $1,145,423
Receivable for shares of the Portfolios sold...... --
Receivable for policy-related transactions........ --
----------
Total assets................................... 1,145,423
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... --
Payable for policy-related transactions........... --
----------
Total liabilities.............................. --
----------
NET ASSETS........................................ $1,145,423
==========
NET ASSETS:
Accumulation unit values.......................... $1,144,529
Accumulation nonunitized.......................... --
Retained by AXA Equitable in Separate Account FP.. 894
----------
TOTAL NET ASSETS.................................. $1,145,423
==========
Investments in shares of the Portfolios, at cost.. $1,264,257
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-16
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP FIDELITY(R) VIP FIDELITY(R) VIP
FIDELITY(R) VIP GOVERNMENT GROWTH & HIGH
EQUITY-INCOME MONEY MARKET INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- ---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,610,775 $1,467,363 $8,797,260 $2,637,489
Receivable for shares of the Portfolios sold................ -- -- 6,193 --
Receivable for policy-related transactions.................. 207 -- -- 71,405
---------- ---------- ---------- ----------
Total assets............................................. 1,610,982 1,467,363 8,803,453 2,708,894
---------- ---------- ---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 207 -- -- 71,405
Payable for policy-related transactions..................... -- -- 6,193 --
---------- ---------- ---------- ----------
Total liabilities........................................ 207 -- 6,193 71,405
---------- ---------- ---------- ----------
NET ASSETS.................................................. $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,605,235 $1,467,282 $8,794,912 $2,637,342
Retained by AXA Equitable in Separate Account FP............ 5,540 81 2,348 147
---------- ---------- ---------- ----------
TOTAL NET ASSETS............................................ $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
Investments in shares of the Portfolios, at cost............ $1,733,436 $1,467,363 $9,103,378 $2,869,071
|
FIDELITY(R) VIP
INVESTMENT
GRADE BOND FIDELITY(R) VIP MID
PORTFOLIO CAP PORTFOLIO
--------------- -------------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $36,813,473 $28,429,287
Receivable for shares of the Portfolios sold................ 63,842 --
Receivable for policy-related transactions.................. -- 33,227
----------- -----------
Total assets............................................. 36,877,315 28,462,514
----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 32,998
Payable for policy-related transactions..................... 63,842 --
----------- -----------
Total liabilities........................................ 63,842 32,998
----------- -----------
NET ASSETS.................................................. $36,813,473 $28,429,516
=========== ===========
NET ASSETS:
Accumulation unit values.................................... $36,812,880 $28,415,333
Retained by AXA Equitable in Separate Account FP............ 593 14,183
----------- -----------
TOTAL NET ASSETS............................................ $36,813,473 $28,429,516
=========== ===========
Investments in shares of the Portfolios, at cost............ $37,849,217 $32,666,614
|
The accompanying notes are an integral part of these financial statements.
FSA-17
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP
FIDELITY(R) VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,319,266 $287,654 $8,151,301 $11,105,183
Receivable for shares of the Portfolios sold................ -- -- 192,850 92,493
Receivable for policy-related transactions.................. 400 -- -- --
---------- -------- ---------- -----------
Total assets............................................. 1,319,666 287,654 8,344,151 11,197,676
---------- -------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 400 -- -- --
Payable for policy-related transactions..................... -- -- 192,850 92,493
---------- -------- ---------- -----------
Total liabilities........................................ 400 -- 192,850 92,493
---------- -------- ---------- -----------
NET ASSETS.................................................. $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,303,693 $287,433 $8,151,161 $11,102,217
Retained by AXA Equitable in Separate Account FP............ 15,573 221 140 2,966
---------- -------- ---------- -----------
TOTAL NET ASSETS............................................ $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
Investments in shares of the Portfolios, at cost............ $1,524,778 $359,062 $9,329,692 $13,870,711
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,522,826 $3,493,111
Receivable for shares of the Portfolios sold................ 142,854 17,488
Receivable for policy-related transactions.................. -- --
----------- ----------
Total assets............................................. 13,665,680 3,510,599
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- --
Payable for policy-related transactions..................... 142,854 17,444
----------- ----------
Total liabilities........................................ 142,854 17,444
----------- ----------
NET ASSETS.................................................. $13,522,826 $3,493,155
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $13,522,813 $3,493,155
Retained by AXA Equitable in Separate Account FP............ 13 --
----------- ----------
TOTAL NET ASSETS............................................ $13,522,826 $3,493,155
=========== ==========
Investments in shares of the Portfolios, at cost............ $14,859,007 $4,332,188
|
The accompanying notes are an integral part of these financial statements.
FSA-18
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,092,113 $525,754 $35,496,796 $12,355,465
Receivable for shares of the Portfolios sold................ -- -- -- 20,561
Receivable for policy-related transactions.................. 105,400 -- 86,183 --
---------- -------- ----------- -----------
Total assets............................................. 5,197,513 525,754 35,582,979 12,376,026
---------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 105,402 -- 85,132 --
Payable for policy-related transactions..................... -- -- -- 20,589
---------- -------- ----------- -----------
Total liabilities........................................ 105,402 -- 85,132 20,589
---------- -------- ----------- -----------
NET ASSETS.................................................. $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $5,091,992 $520,791 $35,497,847 $12,355,437
Retained by AXA Equitable in Separate Account FP............ 119 4,963 -- --
---------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $6,314,958 $596,931 $37,929,920 $16,424,645
|
MFS(R)
MASSACHUSETTS
INVESTORS
MFS(R) INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,162,372 $5,987,373
Receivable for shares of the Portfolios sold................ 502 --
Receivable for policy-related transactions.................. -- 8,212
---------- ----------
Total assets............................................. 3,162,874 5,995,585
---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 8,212
Payable for policy-related transactions..................... 502 --
---------- ----------
Total liabilities........................................ 502 8,212
---------- ----------
NET ASSETS.................................................. $3,162,372 $5,987,373
========== ==========
NET ASSETS:
Accumulation unit values.................................... $3,162,361 $5,987,170
Retained by AXA Equitable in Separate Account FP............ 11 203
---------- ----------
TOTAL NET ASSETS............................................ $3,162,372 $5,987,373
========== ==========
Investments in shares of the Portfolios, at cost............ $3,281,447 $6,007,943
|
The accompanying notes are an integral part of these financial statements.
FSA-19
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $429,070,461 $59,926,393 $26,742,202 $33,346,910 $131,090,935
Receivable for shares of the Portfolios sold................ 81,329 161,523 575 -- 4,436
Receivable for policy-related transactions.................. -- -- -- 4,359 --
------------ ----------- ----------- ----------- ------------
Total assets............................................. 429,151,790 60,087,916 26,742,777 33,351,269 131,095,371
------------ ----------- ----------- ----------- ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 4,495 --
Payable for policy-related transactions..................... 235,812 161,501 616 -- 5,159
------------ ----------- ----------- ----------- ------------
Total liabilities........................................ 235,812 161,501 616 4,495 5,159
------------ ----------- ----------- ----------- ------------
NET ASSETS.................................................. $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
NET ASSETS:
Accumulation unit values.................................... $428,093,247 $59,906,285 $26,625,175 $33,132,520 $131,004,803
Accumulation nonunitized.................................... 736,050 -- -- -- --
Retained by AXA Equitable in Separate Account FP............ 86,681 20,130 116,986 214,254 85,409
------------ ----------- ----------- ----------- ------------
TOTAL NET ASSETS............................................ $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
Investments in shares of the Portfolios, at cost............ $238,715,873 $62,934,325 $29,468,737 $27,465,338 $117,485,310
|
NATURAL
RESOURCES
PORTFOLIO
----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,916,069
Receivable for shares of the Portfolios sold................ 50,589
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 1,966,658
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 50,574
----------
Total liabilities........................................ 50,574
----------
NET ASSETS.................................................. $1,916,084
==========
NET ASSETS:
Accumulation unit values.................................... $1,916,084
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $1,916,084
==========
Investments in shares of the Portfolios, at cost............ $2,278,593
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-20
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R) T. ROWE PRICE
STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 9,538,604 $13,050,978 $1,709,901 $ 9,625,883 $4,749,619
Receivable for shares of the Portfolios sold................ -- -- 13,110 32,931 170,855
Receivable for policy-related transactions.................. 8,936 22,095 -- -- --
----------- ----------- ---------- ----------- ----------
Total assets............................................. 9,547,540 13,073,073 1,723,011 9,658,814 4,920,474
----------- ----------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 8,938 22,099 -- -- --
Payable for policy-related transactions..................... -- -- 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
Total liabilities........................................ 8,938 22,099 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
NET ASSETS.................................................. $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $ 9,530,593 $13,050,450 $1,709,869 $ 9,625,893 $4,749,655
Retained by AXA Equitable in Separate Account FP............ 8,009 524 32 -- --
----------- ----------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $13,095,357 $15,784,271 $1,913,745 $10,092,255 $5,065,292
|
TARGET 2045
ALLOCATION*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,830,234
Receivable for shares of the Portfolios sold................ 12,519
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 2,842,753
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 12,518
----------
Total liabilities........................................ 12,518
----------
NET ASSETS.................................................. $2,830,235
==========
NET ASSETS:
Accumulation unit values.................................... $2,828,879
Retained by AXA Equitable in Separate Account FP............ 1,356
----------
TOTAL NET ASSETS............................................ $2,830,235
==========
Investments in shares of the Portfolios, at cost............ $3,009,453
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-21
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS GLOBAL BOND GROWTH GLOBAL HARD
ALLOCATION* VIP FUND VIP FUND VIP FUND ASSETS FUND
----------- ----------- ----------- ---------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $937,172 $17,139,895 $46,399,867 $4,402,872 $ 8,441,371
Receivable for shares of the Portfolios sold................ -- -- 142,964 -- 5,854
Receivable for policy-related transactions.................. 21,000 6,720 -- 115 --
-------- ----------- ----------- ---------- -----------
Total assets............................................. 958,172 17,146,615 46,542,831 4,402,987 8,447,225
-------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 20,997 6,664 -- 115 --
Payable for policy-related transactions..................... -- -- 142,226 -- 5,855
-------- ----------- ----------- ---------- -----------
Total liabilities........................................ 20,997 6,664 142,226 115 5,855
-------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $937,175 $17,139,951 $46,400,212 $4,401,091 $ 8,440,872
Retained by AXA Equitable in Separate Account FP............ -- -- 393 1,781 498
-------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $999,567 $17,956,273 $46,794,456 $5,140,526 $11,301,460
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,028,162
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 13,013
-----------
Total assets............................................. 13,041,175
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 13,013
Payable for policy-related transactions..................... --
-----------
Total liabilities........................................ 13,013
-----------
NET ASSETS.................................................. $13,028,162
===========
NET ASSETS:
Accumulation unit values.................................... $13,016,072
Retained by AXA Equitable in Separate Account FP............ 12,090
-----------
TOTAL NET ASSETS............................................ $13,028,162
===========
Investments in shares of the Portfolios, at cost............ $13,377,187
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-22
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides the Portfolio shares held by the Variable
Investment Options of the Account:
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
1290 VT CONVERTIBLE SECURITIES.............................. B 119,703
1290 VT DOUBLELINE DYNAMIC ALLOCATION....................... B 1,014,274
1290 VT DOUBLELINE OPPORTUNISTIC BOND....................... B 62,901
1290 VT EQUITY INCOME....................................... A 1,182,345
1290 VT EQUITY INCOME....................................... B 3,983,917
1290 VT GAMCO MERGERS & ACQUISITIONS........................ A 60,181
1290 VT GAMCO MERGERS & ACQUISITIONS........................ B 1,221,476
1290 VT GAMCO SMALL COMPANY VALUE........................... A 140,596
1290 VT GAMCO SMALL COMPANY VALUE........................... B 3,109,813
1290 VT SMARTBETA EQUITY.................................... B 109,269
1290 VT SOCIALLY RESPONSIBLE................................ A 38,861
1290 VT SOCIALLY RESPONSIBLE................................ B 215,486
ALL ASSET GROWTH-ALT 20..................................... B 1,609,294
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.................................... CLASS 4 388,507
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)........ CLASS 4 922,847
AXA 400 MANAGED VOLATILITY.................................. B 243,969
AXA 500 MANAGED VOLATILITY.................................. B 471,708
AXA 2000 MANAGED VOLATILITY................................. B 237,371
AXA AGGRESSIVE ALLOCATION................................... A 5,593,117
AXA AGGRESSIVE ALLOCATION................................... B 7,818,963
AXA BALANCED STRATEGY....................................... B 2,674,588
AXA CONSERVATIVE ALLOCATION................................. A 2,219,396
AXA CONSERVATIVE ALLOCATION................................. B 822,329
AXA CONSERVATIVE GROWTH STRATEGY............................ B 526,438
AXA CONSERVATIVE STRATEGY................................... B 256,348
AXA CONSERVATIVE-PLUS ALLOCATION............................ A 1,814,262
AXA CONSERVATIVE-PLUS ALLOCATION............................ B 1,478,398
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ A 1,760,907
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ B 6,307,150
AXA GROWTH STRATEGY......................................... B 3,521,111
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... A 1,310,238
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... B 4,111,647
AXA INTERNATIONAL MANAGED VOLATILITY........................ B 304,458
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. A 1,296,990
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. B 4,553,520
AXA LARGE CAP CORE MANAGED VOLATILITY....................... A 465,367
AXA LARGE CAP CORE MANAGED VOLATILITY....................... B 2,496,196
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... A 1,514,006
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... B 7,005,545
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... A 14,580,243
|
The accompanying notes are an integral part of these financial statements.
FSA-23
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... B 7,198,635
AXA MID CAP VALUE MANAGED VOLATILITY........................ A 11,391,959
AXA MID CAP VALUE MANAGED VOLATILITY........................ B 873,205
AXA MODERATE ALLOCATION..................................... A 50,308,539
AXA MODERATE ALLOCATION..................................... B 11,787,783
AXA MODERATE GROWTH STRATEGY................................ B 6,828,024
AXA MODERATE-PLUS ALLOCATION................................ A 15,908,384
AXA MODERATE-PLUS ALLOCATION................................ B 23,347,653
AXA/AB SMALL CAP GROWTH..................................... A 7,872,708
AXA/AB SMALL CAP GROWTH..................................... B 4,395,895
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ A 1,035,996
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ B 6,219,307
AXA/JANUS ENTERPRISE........................................ A 1,091,561
AXA/JANUS ENTERPRISE........................................ B 1,418,463
AXA/LOOMIS SAYLES GROWTH.................................... A 1,986,582
AXA/LOOMIS SAYLES GROWTH.................................... B 3,311,787
BLACKROCK GLOBAL ALLOCATION V.I. FUND....................... CLASS III 419,823
CHARTER/SM /MULTI-SECTOR BOND............................... A 14,467,398
CHARTER/SM /MULTI-SECTOR BOND............................... B 3,909,782
CHARTER/SM /SMALL CAP GROWTH................................ B 1,040,450
CHARTER/SM /SMALL CAP VALUE................................. A 713,978
CHARTER/SM /SMALL CAP VALUE................................. B 903,430
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO...................... CLASS II 35,951
EQ/AMERICAN CENTURY MID CAP VALUE........................... B 2,635,637
EQ/BLACKROCK BASIC VALUE EQUITY............................. A 1,759,008
EQ/BLACKROCK BASIC VALUE EQUITY............................. B 7,243,855
EQ/CAPITAL GUARDIAN RESEARCH................................ A 680,669
EQ/CAPITAL GUARDIAN RESEARCH................................ B 4,354,667
EQ/COMMON STOCK INDEX....................................... A 42,889,495
EQ/COMMON STOCK INDEX....................................... B 6,920,955
EQ/CORE BOND INDEX.......................................... A 2,637,791
EQ/CORE BOND INDEX.......................................... B 2,486,532
EQ/EQUITY 500 INDEX......................................... A 13,331,857
EQ/EQUITY 500 INDEX......................................... B 6,574,184
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP.................. B 3,053,910
EQ/FRANKLIN RISING DIVIDENDS................................ B 2,085,433
EQ/FRANKLIN STRATEGIC INCOME................................ B 3,278,495
EQ/GLOBAL BOND PLUS......................................... A 850,983
EQ/GLOBAL BOND PLUS......................................... B 1,031,116
EQ/GOLDMAN SACHS MID CAP VALUE.............................. B 562,515
EQ/INTERMEDIATE GOVERNMENT BOND............................. A 2,931,643
EQ/INTERMEDIATE GOVERNMENT BOND............................. B 1,841,764
EQ/INTERNATIONAL EQUITY INDEX............................... A 26,378,022
EQ/INTERNATIONAL EQUITY INDEX............................... B 6,572,246
|
The accompanying notes are an integral part of these financial statements.
FSA-24
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
---------------- ---------------------
EQ/INVESCO COMSTOCK......................................... A 773,176
EQ/INVESCO COMSTOCK......................................... B 906,139
EQ/INVESCO GLOBAL REAL ESTATE............................... B 2,431,598
EQ/INVESCO INTERNATIONAL GROWTH............................. B 985,703
EQ/IVY ENERGY............................................... B 2,654,216
EQ/IVY MID CAP GROWTH....................................... B 3,001,771
EQ/IVY SCIENCE AND TECHNOLOGY............................... B 1,275,689
EQ/JPMORGAN VALUE OPPORTUNITIES............................. A 427,218
EQ/JPMORGAN VALUE OPPORTUNITIES............................. B 2,467,492
EQ/LARGE CAP GROWTH INDEX................................... A 1,450,724
EQ/LARGE CAP GROWTH INDEX................................... B 10,022,637
EQ/LARGE CAP VALUE INDEX.................................... A 1,390,918
EQ/LARGE CAP VALUE INDEX.................................... B 1,739,938
EQ/LAZARD EMERGING MARKETS EQUITY........................... B 2,739,826
EQ/MFS INTERNATIONAL GROWTH................................. B 6,910,220
EQ/MFS INTERNATIONAL VALUE.................................. B 4,184,162
EQ/MFS UTILITIES SERIES..................................... B 79,857
EQ/MID CAP INDEX............................................ A 2,743,114
EQ/MID CAP INDEX............................................ B 8,304,199
EQ/MONEY MARKET............................................. A 105,495,633
EQ/MONEY MARKET............................................. B 43,332,671
EQ/PIMCO REAL RETURN........................................ B 2,044,898
EQ/PIMCO TOTAL RETURN....................................... B 6,452,442
EQ/PIMCO ULTRA SHORT BOND................................... A 1,615,174
EQ/PIMCO ULTRA SHORT BOND................................... B 1,780,218
EQ/QUALITY BOND PLUS........................................ A 2,756,046
EQ/QUALITY BOND PLUS........................................ B 2,258,746
EQ/SMALL COMPANY INDEX...................................... A 5,079,561
EQ/SMALL COMPANY INDEX...................................... B 4,390,128
EQ/T. ROWE PRICE GROWTH STOCK............................... A 364,531
EQ/T. ROWE PRICE GROWTH STOCK............................... B 2,341,623
EQ/T. ROWE PRICE HEALTH SCIENCES............................ B 191,597
EQ/UBS GROWTH & INCOME...................................... B 1,473,204
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO............. SERVICE CLASS 2 69,294
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO .................... SERVICE CLASS 2 81,147
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO........... SERVICE CLASS 2 1,467,363
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO................... SERVICE CLASS 2 464,480
FIDELITY(R) VIP HIGH INCOME PORTFOLIO....................... SERVICE CLASS 2 550,624
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO............. SERVICE CLASS 2 3,060,139
FIDELITY(R) VIP MID CAP PORTFOLIO........................... SERVICE CLASS 2 972,939
FIDELITY(R) VIP VALUE PORTFOLIO............................. SERVICE CLASS 2 102,269
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO.................. SERVICE CLASS 2 25,661
|
The accompanying notes are an integral part of these financial statements.
FSA-25
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
-------------------- ---------------------
FRANKLIN MUTUAL SHARES VIP FUND............................. CLASS 2 468,466
FRANKLIN SMALL CAP VALUE VIP FUND........................... CLASS 2 760,629
INVESCO V.I. DIVERSIFIED DIVIDEND FUND...................... SERIES II 574,462
INVESCO V.I. MID CAP CORE EQUITY FUND....................... SERIES II 325,850
INVESCO V.I. SMALL CAP EQUITY FUND.......................... SERIES II 337,897
IVY VIP GLOBAL EQUITY INCOME................................ CLASS II 76,292
IVY VIP HIGH INCOME......................................... CLASS II 10,641,803
IVY VIP SMALL CAP GROWTH.................................... CLASS II 1,608,282
MFS(R) INVESTORS TRUST SERIES............................... SERVICE CLASS 118,530
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO....... SERVICE CLASS 344,498
MULTIMANAGER AGGRESSIVE EQUITY.............................. A 7,249,289
MULTIMANAGER AGGRESSIVE EQUITY.............................. B 580,629
MULTIMANAGER CORE BOND...................................... A 1,992,977
MULTIMANAGER CORE BOND...................................... B 4,265,604
MULTIMANAGER MID CAP GROWTH................................. A 1,312,177
MULTIMANAGER MID CAP GROWTH................................. B 1,958,220
MULTIMANAGER MID CAP VALUE.................................. A 625,091
MULTIMANAGER MID CAP VALUE.................................. B 1,905,632
MULTIMANAGER TECHNOLOGY..................................... A 950,133
MULTIMANAGER TECHNOLOGY..................................... B 4,573,286
NATURAL RESOURCES PORTFOLIO................................. CLASS II 90,126
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO............. ADVISOR CLASS 1,566,273
T. ROWE PRICE EQUITY INCOME PORTFOLIO....................... CLASS II 560,850
TARGET 2015 ALLOCATION...................................... B 213,001
TARGET 2025 ALLOCATION...................................... B 942,405
TARGET 2035 ALLOCATION...................................... B 445,126
TARGET 2045 ALLOCATION...................................... B 264,833
TARGET 2055 ALLOCATION...................................... B 92,815
TEMPLETON DEVELOPING MARKETS VIP FUND....................... CLASS 2 2,007,013
TEMPLETON GLOBAL BOND VIP FUND.............................. CLASS 2 2,756,974
TEMPLETON GROWTH VIP FUND................................... CLASS 2 360,596
VANECK VIP GLOBAL HARD ASSETS FUND.......................... CLASS S 515,661
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX PORTFOLIO.. INVESTOR SHARE CLASS 342,576
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
FSA-26
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides units outstanding and unit values associated with
the Variable Investment Options of the Account and is further categorized by
share class and contract charges:
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $ 12.19 13
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $121.88 5
1290 VT CONVERTIBLE SECURITIES.................... 0.60% B $119.95 3
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $ 10.87 97
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $118.12 77
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.60% B $114.18 5
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.90% B $112.24 --
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $ 10.12 7
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $101.17 5
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.60% B $100.17 1
1290 VT EQUITY INCOME............................. 0.00% A $165.68 4
1290 VT EQUITY INCOME............................. 0.60% A $154.41 22
1290 VT EQUITY INCOME............................. 0.80% A $150.81 --
1290 VT EQUITY INCOME............................. 0.90% A $149.05 2
1290 VT EQUITY INCOME............................. 0.00% B $228.29 55
1290 VT EQUITY INCOME............................. 0.60% B $152.60 15
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $ 14.18 27
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $141.81 2
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $145.88 13
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $181.95 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.60% B $135.96 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.80% B $132.79 --
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.90% B $131.24 4
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $ 21.15 258
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $211.48 7
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $242.93 13
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $371.93 277
1290 VT GAMCO SMALL COMPANY VALUE................. 0.60% B $226.42 201
1290 VT GAMCO SMALL COMPANY VALUE................. 0.80% B $221.14 1
1290 VT GAMCO SMALL COMPANY VALUE................. 0.90% B $218.55 19
1290 VT SMARTBETA EQUITY.......................... 0.00% B $ 11.84 58
1290 VT SMARTBETA EQUITY.......................... 0.00% B $118.40 3
1290 VT SMARTBETA EQUITY.......................... 0.60% B $116.52 2
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% A $327.79 1
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% B $205.36 5
1290 VT SOCIALLY RESPONSIBLE...................... 0.60% B $182.75 7
1290 VT SOCIALLY RESPONSIBLE...................... 0.80% B $175.75 --
1290 VT SOCIALLY RESPONSIBLE...................... 0.90% B $172.35 --
ALL ASSET GROWTH-ALT 20........................... 0.00% B $ 11.11 80
ALL ASSET GROWTH-ALT 20........................... 0.00% B $153.87 148
ALL ASSET GROWTH-ALT 20........................... 0.60% B $146.02 41
ALL ASSET GROWTH-ALT 20........................... 0.80% B $143.49 --
ALL ASSET GROWTH-ALT 20........................... 0.90% B $142.24 1
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $ 13.09 57
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $130.88 36
|
The accompanying notes are an integral part of these financial statements.
FSA-27
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.60% CLASS 4 $126.51 17
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.80% CLASS 4 $125.08 --
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.90% CLASS 4 $124.37 5
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $ 11.03 254
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $110.32 99
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.60% CLASS 4 $106.64 45
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.80% CLASS 4 $105.43 --
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.90% CLASS 4 $104.83 6
AXA 400 MANAGED VOLATILITY........................ 0.00% B $191.95 13
AXA 400 MANAGED VOLATILITY........................ 0.60% B $182.16 10
AXA 400 MANAGED VOLATILITY........................ 0.80% B $179.00 --
AXA 400 MANAGED VOLATILITY........................ 0.90% B $177.44 --
AXA 500 MANAGED VOLATILITY........................ 0.00% B $214.17 34
AXA 500 MANAGED VOLATILITY........................ 0.60% B $203.25 14
AXA 500 MANAGED VOLATILITY........................ 0.80% B $199.72 --
AXA 500 MANAGED VOLATILITY........................ 0.90% B $197.98 1
AXA 2000 MANAGED VOLATILITY....................... 0.00% B $179.09 16
AXA 2000 MANAGED VOLATILITY....................... 0.60% B $169.96 7
AXA 2000 MANAGED VOLATILITY....................... 0.80% B $167.01 --
AXA 2000 MANAGED VOLATILITY....................... 0.90% B $165.56 1
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $ 24.19 70
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $145.10 --
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $240.35 111
AXA AGGRESSIVE ALLOCATION......................... 0.60% A $219.28 123
AXA AGGRESSIVE ALLOCATION......................... 0.80% A $212.64 1
AXA AGGRESSIVE ALLOCATION......................... 0.90% A $209.40 5
AXA AGGRESSIVE ALLOCATION......................... 0.00% B $235.46 295
AXA AGGRESSIVE ALLOCATION......................... 0.60% B $214.81 45
AXA BALANCED STRATEGY............................. 0.00% B $156.00 246
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $ 14.78 138
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $132.64 5
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $162.27 37
AXA CONSERVATIVE ALLOCATION....................... 0.60% A $148.05 62
AXA CONSERVATIVE ALLOCATION....................... 0.80% A $143.57 --
AXA CONSERVATIVE ALLOCATION....................... 0.90% A $141.38 14
AXA CONSERVATIVE ALLOCATION....................... 0.00% B $158.96 35
AXA CONSERVATIVE ALLOCATION....................... 0.60% B $145.02 12
AXA CONSERVATIVE GROWTH STRATEGY.................. 0.00% B $146.65 48
AXA CONSERVATIVE STRATEGY......................... 0.00% B $128.64 23
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $ 17.11 126
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $137.55 --
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $181.08 32
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% A $165.20 48
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.80% A $160.20 1
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.90% A $157.76 2
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% B $177.40 63
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% B $161.84 14
|
The accompanying notes are an integral part of these financial statements.
FSA-28
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $ 25.35 32
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $358.64 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $577.44 44
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% B $309.60 88
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $272.24 210
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $369.11 11
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.80% B $260.76 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.90% B $255.21 19
AXA GROWTH STRATEGY............................... 0.00% B $176.45 332
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% A $236.86 50
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% A $168.13 3
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% B $153.51 120
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% B $136.20 133
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.80% B $131.39 --
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.90% B $128.46 18
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.00% B $120.70 26
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.60% B $114.55 3
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.80% B $112.56 --
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.90% B $111.58 --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $ 16.35 35
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $175.27 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $223.17 61
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% A $156.54 1
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% B $163.14 112
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $156.58 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $159.87 184
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.80% B $139.64 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.90% B $150.30 23
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $ 29.69 13
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $333.18 12
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% A $229.45 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% B $214.54 74
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% B $190.70 37
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.80% B $183.32 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.90% B $179.74 2
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $ 34.99 13
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $342.43 --
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $450.72 94
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% A $275.09 6
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% B $430.17 84
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $216.95 41
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $377.58 379
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.80% B $361.45 5
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.90% B $353.64 27
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $ 25.23 12
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $213.05 1
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $217.16 89
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $287.53 198
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $196.08 11
|
The accompanying notes are an integral part of these financial statements.
FSA-29
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $223.86 575
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.80% A $185.88 14
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% A $210.45 96
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% B $214.35 83
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $189.76 6
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $220.96 428
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% B $207.72 --
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $ 30.35 16
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $269.59 1
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $348.51 23
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $374.40 106
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $255.98 4
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $297.15 19
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $305.90 314
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.80% A $292.83 3
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.90% A $286.51 24
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% B $347.03 35
AXA MODERATE ALLOCATION........................... 0.00% A $ 18.27 369
AXA MODERATE ALLOCATION........................... 0.00% A $137.48 4
AXA MODERATE ALLOCATION........................... 0.00% A $393.57 185
AXA MODERATE ALLOCATION........................... 0.60% A $832.85 627
AXA MODERATE ALLOCATION........................... 0.80% A $266.75 9
AXA MODERATE ALLOCATION........................... 0.90% A $335.95 129
AXA MODERATE ALLOCATION........................... 0.00% B $193.78 520
AXA MODERATE ALLOCATION........................... 0.60% B $175.85 289
AXA MODERATE GROWTH STRATEGY...................... 0.00% B $166.06 643
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $ 21.08 490
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $142.76 2
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $222.44 362
AXA MODERATE-PLUS ALLOCATION...................... 0.60% A $202.93 290
AXA MODERATE-PLUS ALLOCATION...................... 0.80% A $196.79 3
AXA MODERATE-PLUS ALLOCATION...................... 0.90% A $193.79 43
AXA MODERATE-PLUS ALLOCATION...................... 0.00% B $217.90 926
AXA MODERATE-PLUS ALLOCATION...................... 0.60% B $198.79 158
AXA/AB SMALL CAP GROWTH........................... 0.00% A $ 38.70 137
AXA/AB SMALL CAP GROWTH........................... 0.00% A $508.91 64
AXA/AB SMALL CAP GROWTH........................... 0.60% A $446.68 172
AXA/AB SMALL CAP GROWTH........................... 0.80% A $427.59 3
AXA/AB SMALL CAP GROWTH........................... 0.90% A $418.36 18
AXA/AB SMALL CAP GROWTH........................... 0.00% B $417.73 35
AXA/AB SMALL CAP GROWTH........................... 0.60% B $331.02 147
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $ 35.48 78
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $333.99 --
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $470.86 18
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% B $269.42 124
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.60% B $232.39 127
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.80% B $230.65 1
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.90% B $226.20 11
|
The accompanying notes are an integral part of these financial statements.
FSA-30
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA/JANUS ENTERPRISE.............................. 0.00% A $198.06 32
AXA/JANUS ENTERPRISE.............................. 0.60% A $184.59 59
AXA/JANUS ENTERPRISE.............................. 0.80% A $180.29 --
AXA/JANUS ENTERPRISE.............................. 0.90% A $178.18 5
AXA/JANUS ENTERPRISE.............................. 0.00% B $ 11.35 14
AXA/JANUS ENTERPRISE.............................. 0.00% B $286.64 65
AXA/JANUS ENTERPRISE.............................. 0.60% B $182.43 25
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $ 25.82 65
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $275.24 8
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% A $256.53 39
AXA/LOOMIS SAYLES GROWTH.......................... 0.80% A $250.55 --
AXA/LOOMIS SAYLES GROWTH.......................... 0.90% A $247.62 4
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% B $336.10 60
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% B $253.58 18
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $ 14.25 293
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $142.46 9
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $ 14.66 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $238.57 67
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% A $393.16 82
CHARTER/SM /MULTI-SECTOR BOND..................... 0.80% A $154.48 3
CHARTER/SM /MULTI-SECTOR BOND..................... 0.90% A $229.10 17
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% B $144.32 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% B $110.73 75
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $156.94 1
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $230.14 41
CHARTER/SM /SMALL CAP GROWTH...................... 0.60% B $146.34 19
CHARTER/SM/ SMALL CAP GROWTH...................... 0.80% B $142.95 --
CHARTER/SM/ SMALL CAP GROWTH...................... 0.90% B $141.28 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% A $293.02 36
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% A $267.34 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% B $307.37 17
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $266.60 2
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $273.81 27
CHARTER/SM/ SMALL CAP VALUE....................... 0.80% B $263.08 --
CHARTER/SM/ SMALL CAP VALUE....................... 0.90% B $257.41 --
CHARTER/SM /SMALL CAP VALUE....................... 0.90% B $257.99 2
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ 0.00% CLASS II $ 11.07 56
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $ 21.75 242
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $217.49 116
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.60% B $206.40 79
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.80% B $202.82 --
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.90% B $201.05 6
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $ 27.63 156
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $258.09 3
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $360.36 83
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% A $328.79 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% B $474.29 116
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $272.25 22
|
The accompanying notes are an integral part of these financial statements.
FSA-31
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $ 416.31 188
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.80% B $ 398.52 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.90% B $ 389.92 19
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 35.85 36
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 310.61 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 421.95 30
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% A $ 262.91 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% B $ 320.51 39
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% B $ 285.30 269
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.80% B $ 274.39 3
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.90% B $ 269.10 26
EQ/COMMON STOCK INDEX............................. 0.00% A $ 32.85 216
EQ/COMMON STOCK INDEX............................. 0.00% A $ 677.71 259
EQ/COMMON STOCK INDEX............................. 0.60% A $1,689.68 586
EQ/COMMON STOCK INDEX............................. 0.80% A $ 403.29 27
EQ/COMMON STOCK INDEX............................. 0.90% A $ 683.50 134
EQ/COMMON STOCK INDEX............................. 0.00% B $ 211.64 306
EQ/COMMON STOCK INDEX............................. 0.60% B $ 226.64 620
EQ/CORE BOND INDEX................................ 0.00% A $ 137.67 100
EQ/CORE BOND INDEX................................ 0.00% A $ 143.89 4
EQ/CORE BOND INDEX................................ 0.60% A $ 133.22 3
EQ/CORE BOND INDEX................................ 0.60% A $ 159.26 60
EQ/CORE BOND INDEX................................ 0.80% A $ 125.45 --
EQ/CORE BOND INDEX................................ 0.90% A $ 123.31 9
EQ/CORE BOND INDEX................................ 0.00% B $ 143.04 98
EQ/CORE BOND INDEX................................ 0.60% B $ 155.62 10
EQ/CORE BOND INDEX................................ 0.60% B $ 158.32 54
EQ/EQUITY 500 INDEX............................... 0.00% A $ 32.35 741
EQ/EQUITY 500 INDEX............................... 0.00% A $ 777.94 262
EQ/EQUITY 500 INDEX............................... 0.60% A $ 676.96 391
EQ/EQUITY 500 INDEX............................... 0.80% A $ 453.55 8
EQ/EQUITY 500 INDEX............................... 0.90% A $ 628.01 68
EQ/EQUITY 500 INDEX............................... 0.00% B $ 235.43 722
EQ/EQUITY 500 INDEX............................... 0.60% B $ 216.18 436
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 32.04 179
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 211.91 110
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 401.90 22
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.60% B $ 201.11 274
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.80% B $ 197.61 --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.90% B $ 195.89 4
EQ/FRANKLIN RISING DIVIDENDS...................... 0.00% B $ 232.46 132
EQ/FRANKLIN RISING DIVIDENDS...................... 0.60% B $ 220.61 90
EQ/FRANKLIN RISING DIVIDENDS...................... 0.80% B $ 216.78 --
EQ/FRANKLIN RISING DIVIDENDS...................... 0.90% B $ 214.89 7
EQ/FRANKLIN STRATEGIC INCOME...................... 0.00% B $ 136.15 171
EQ/FRANKLIN STRATEGIC INCOME...................... 0.60% B $ 129.21 68
EQ/FRANKLIN STRATEGIC INCOME...................... 0.80% B $ 126.96 --
EQ/FRANKLIN STRATEGIC INCOME...................... 0.90% B $ 125.86 11
|
The accompanying notes are an integral part of these financial statements.
FSA-32
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/GLOBAL BOND PLUS............................... 0.00% A $ 12.44 51
EQ/GLOBAL BOND PLUS............................... 0.00% A $142.20 18
EQ/GLOBAL BOND PLUS............................... 0.60% A $124.12 26
EQ/GLOBAL BOND PLUS............................... 0.80% A $121.23 --
EQ/GLOBAL BOND PLUS............................... 0.90% A $119.81 9
EQ/GLOBAL BOND PLUS............................... 0.00% B $135.52 51
EQ/GLOBAL BOND PLUS............................... 0.60% B $122.66 18
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.00% B $182.47 35
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.60% B $173.16 12
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.80% B $170.16 --
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.90% B $168.67 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $ 11.39 88
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $237.70 46
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% A $251.73 60
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.80% A $177.01 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.90% A $199.78 12
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $125.27 5
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $170.68 30
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% B $151.63 84
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $ 17.22 319
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $199.45 274
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% A $172.89 836
EQ/INTERNATIONAL EQUITY INDEX..................... 0.80% A $139.66 7
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% A $160.91 79
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% B $136.17 189
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% B $128.40 218
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% B $118.46 --
EQ/INVESCO COMSTOCK............................... 0.00% A $ 11.79 22
EQ/INVESCO COMSTOCK............................... 0.00% A $169.29 37
EQ/INVESCO COMSTOCK............................... 0.60% A $157.77 28
EQ/INVESCO COMSTOCK............................... 0.80% A $154.10 --
EQ/INVESCO COMSTOCK............................... 0.90% A $152.29 5
EQ/INVESCO COMSTOCK............................... 0.00% B $215.50 54
EQ/INVESCO COMSTOCK............................... 0.60% B $155.85 14
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $ 16.47 251
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $164.67 143
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.60% B $156.28 48
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.80% B $153.57 --
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.90% B $152.23 7
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $ 14.21 330
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $142.11 136
EQ/INVESCO INTERNATIONAL GROWTH................... 0.60% B $134.86 55
EQ/INVESCO INTERNATIONAL GROWTH................... 0.80% B $132.52 --
EQ/INVESCO INTERNATIONAL GROWTH................... 0.90% B $131.36 5
EQ/IVY ENERGY..................................... 0.00% B $ 7.26 119
EQ/IVY ENERGY..................................... 0.00% B $ 72.62 88
EQ/IVY ENERGY..................................... 0.60% B $ 68.92 42
EQ/IVY ENERGY..................................... 0.80% B $ 67.72 --
EQ/IVY ENERGY..................................... 0.90% B $ 67.13 1
|
The accompanying notes are an integral part of these financial statements.
FSA-33
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/IVY MID CAP GROWTH............................. 0.00% B $ 23.22 127
EQ/IVY MID CAP GROWTH............................. 0.00% B $232.22 81
EQ/IVY MID CAP GROWTH............................. 0.60% B $220.39 49
EQ/IVY MID CAP GROWTH............................. 0.80% B $216.56 --
EQ/IVY MID CAP GROWTH............................. 0.90% B $214.67 3
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $ 25.37 83
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $169.19 100
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $253.69 17
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.60% B $163.54 51
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.80% B $161.69 --
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.90% B $160.77 6
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $ 30.81 90
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $269.07 --
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $350.51 10
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% B $327.29 41
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $201.61 8
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $287.28 63
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.80% B $275.00 1
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.90% B $269.06 14
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $ 41.17 52
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $367.70 2
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $442.02 37
EQ/LARGE CAP GROWTH INDEX......................... 0.60% A $290.81 1
EQ/LARGE CAP GROWTH INDEX......................... 0.00% B $219.96 131
EQ/LARGE CAP GROWTH INDEX......................... 0.60% B $195.52 486
EQ/LARGE CAP GROWTH INDEX......................... 0.80% B $187.95 5
EQ/LARGE CAP GROWTH INDEX......................... 0.90% B $184.28 22
EQ/LARGE CAP VALUE INDEX.......................... 0.00% A $108.69 38
EQ/LARGE CAP VALUE INDEX.......................... 0.60% A $101.30 37
EQ/LARGE CAP VALUE INDEX.......................... 0.80% A $ 98.94 --
EQ/LARGE CAP VALUE INDEX.......................... 0.90% A $ 97.78 31
EQ/LARGE CAP VALUE INDEX.......................... 0.00% B $125.20 88
EQ/LARGE CAP VALUE INDEX.......................... 0.60% B $100.13 26
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $ 10.83 527
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $108.31 317
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.60% B $102.79 113
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.80% B $101.00 --
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.90% B $100.12 9
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $141.11 68
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $225.18 96
EQ/MFS INTERNATIONAL GROWTH....................... 0.60% B $131.51 97
EQ/MFS INTERNATIONAL GROWTH....................... 0.80% B $128.45 --
EQ/MFS INTERNATIONAL GROWTH....................... 0.90% B $126.94 20
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $ 19.84 589
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $198.35 297
EQ/MFS INTERNATIONAL VALUE........................ 0.60% B $188.24 153
EQ/MFS INTERNATIONAL VALUE........................ 0.80% B $184.97 --
EQ/MFS INTERNATIONAL VALUE........................ 0.90% B $183.36 18
|
The accompanying notes are an integral part of these financial statements.
FSA-34
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/MFS UTILITIES SERIES........................... 0.00% B $ 19.86 101
EQ/MFS UTILITIES SERIES........................... 0.00% B $198.59 1
EQ/MID CAP INDEX.................................. 0.00% A $ 35.31 125
EQ/MID CAP INDEX.................................. 0.00% A $273.01 8
EQ/MID CAP INDEX.................................. 0.00% A $403.99 64
EQ/MID CAP INDEX.................................. 0.60% A $273.70 5
EQ/MID CAP INDEX.................................. 0.00% B $258.04 160
EQ/MID CAP INDEX.................................. 0.60% B $231.08 241
EQ/MID CAP INDEX.................................. 0.80% B $222.70 1
EQ/MID CAP INDEX.................................. 0.90% B $218.63 15
EQ/MONEY MARKET................................... 0.00% A $ 10.17 58
EQ/MONEY MARKET................................... 0.00% A $ 10.21 980
EQ/MONEY MARKET................................... 0.00% A $174.96 180
EQ/MONEY MARKET................................... 0.60% A $242.58 235
EQ/MONEY MARKET................................... 0.80% A $135.63 1
EQ/MONEY MARKET................................... 0.90% A $149.35 15
EQ/MONEY MARKET................................... 0.00% B $133.70 148
EQ/MONEY MARKET................................... 0.60% B $124.25 183
EQ/PIMCO REAL RETURN.............................. 0.00% B $ 12.32 119
EQ/PIMCO REAL RETURN.............................. 0.00% B $123.20 134
EQ/PIMCO REAL RETURN.............................. 0.60% B $116.92 48
EQ/PIMCO REAL RETURN.............................. 0.80% B $114.89 --
EQ/PIMCO REAL RETURN.............................. 0.90% B $113.89 4
EQ/PIMCO TOTAL RETURN............................. 0.00% B $ 12.99 219
EQ/PIMCO TOTAL RETURN............................. 0.00% B $129.93 302
EQ/PIMCO TOTAL RETURN............................. 0.60% B $123.31 183
EQ/PIMCO TOTAL RETURN............................. 0.80% B $121.17 1
EQ/PIMCO TOTAL RETURN............................. 0.90% B $120.11 30
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% A $121.24 57
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $102.86 2
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $112.99 69
EQ/PIMCO ULTRA SHORT BOND......................... 0.80% A $110.36 --
EQ/PIMCO ULTRA SHORT BOND......................... 0.90% A $109.07 8
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% B $124.24 101
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% B $112.39 44
EQ/QUALITY BOND PLUS.............................. 0.00% A $ 12.45 62
EQ/QUALITY BOND PLUS.............................. 0.00% A $257.31 26
EQ/QUALITY BOND PLUS.............................. 0.60% A $208.51 67
EQ/QUALITY BOND PLUS.............................. 0.80% A $188.46 1
EQ/QUALITY BOND PLUS.............................. 0.90% A $193.19 7
EQ/QUALITY BOND PLUS.............................. 0.00% B $173.62 38
EQ/QUALITY BOND PLUS.............................. 0.60% B $154.00 78
EQ/SMALL COMPANY INDEX............................ 0.00% A $ 30.87 108
EQ/SMALL COMPANY INDEX............................ 0.00% A $183.31 1
EQ/SMALL COMPANY INDEX............................ 0.00% A $457.91 50
EQ/SMALL COMPANY INDEX............................ 0.60% A $285.70 8
EQ/SMALL COMPANY INDEX............................ 0.60% A $368.53 46
EQ/SMALL COMPANY INDEX............................ 0.80% A $355.04 --
EQ/SMALL COMPANY INDEX............................ 0.90% A $349.48 6
|
The accompanying notes are an integral part of these financial statements.
FSA-35
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/SMALL COMPANY INDEX................................. 0.00% B $332.45 99
EQ/SMALL COMPANY INDEX................................. 0.60% B $320.75 --
EQ/SMALL COMPANY INDEX................................. 0.60% B $324.91 26
EQ/SMALL COMPANY INDEX................................. 0.90% B $305.45 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $ 43.42 352
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $249.97 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $250.49 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% A $233.23 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $246.83 30
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $293.39 135
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% B $230.30 207
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.80% B $225.02 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.90% B $222.42 17
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $ 39.13 127
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $391.31 7
EQ/UBS GROWTH & INCOME................................. 0.00% B $167.13 1
EQ/UBS GROWTH & INCOME................................. 0.00% B $240.25 22
EQ/UBS GROWTH & INCOME................................. 0.60% B $155.77 34
EQ/UBS GROWTH & INCOME................................. 0.80% B $152.14 --
EQ/UBS GROWTH & INCOME................................. 0.90% B $150.36 3
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 24.21 10
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $250.34 4
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $ 28.25 46
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $300.33 1
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $ 10.21 101
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $102.14 4
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $ 30.46 56
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $220.09 19
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $299.00 1
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.60% SERVICE CLASS 2 $208.87 11
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.90% SERVICE CLASS 2 $203.46 1
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $ 24.37 55
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $253.48 5
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 16.07 619
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $176.56 152
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $ 31.12 177
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $188.62 66
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $495.85 7
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.60% SERVICE CLASS 2 $179.00 37
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.80% SERVICE CLASS 2 $175.89 --
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.90% SERVICE CLASS 2 $174.36 2
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $ 32.58 35
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $294.80 1
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $ 34.57 7
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $354.46 --
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $ 17.39 41
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $173.91 30
|
The accompanying notes are an integral part of these financial statements.
FSA-36
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
FRANKLIN MUTUAL SHARES VIP FUND................... 0.60% CLASS 2 $ 165.05 13
FRANKLIN MUTUAL SHARES VIP FUND................... 0.80% CLASS 2 $ 162.18 --
FRANKLIN MUTUAL SHARES VIP FUND................... 0.90% CLASS 2 $ 160.77 1
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 19.38 173
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 193.81 19
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.60% CLASS 2 $ 183.93 20
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.80% CLASS 2 $ 180.74 --
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.90% CLASS 2 $ 179.16 2
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 18.73 568
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 187.25 15
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 15.98 27
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 159.75 11
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.60% SERIES II $ 151.61 8
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.80% SERIES II $ 148.98 --
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.90% SERIES II $ 147.68 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 17.52 22
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 175.15 20
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.60% SERIES II $ 166.22 7
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.80% SERIES II $ 163.34 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.90% SERIES II $ 161.91 --
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 17.57 29
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 175.70 --
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 11.97 471
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 119.67 181
IVY VIP HIGH INCOME............................... 0.60% CLASS II $ 115.67 66
IVY VIP HIGH INCOME............................... 0.80% CLASS II $ 114.36 --
IVY VIP HIGH INCOME............................... 0.90% CLASS II $ 113.71 4
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 19.24 37
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 192.42 36
IVY VIP SMALL CAP GROWTH.......................... 0.60% CLASS II $ 182.61 23
IVY VIP SMALL CAP GROWTH.......................... 0.80% CLASS II $ 179.44 --
IVY VIP SMALL CAP GROWTH.......................... 0.90% CLASS II $ 177.87 2
MFS(R) INVESTORS TRUST SERIES..................... 0.00% SERVICE CLASS $ 218.20 9
MFS(R) INVESTORS TRUST SERIES..................... 0.60% SERVICE CLASS $ 207.08 5
MFS(R) INVESTORS TRUST SERIES..................... 0.80% SERVICE CLASS $ 203.49 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.00% SERVICE CLASS $ 243.20 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.60% SERVICE CLASS $ 230.81 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.80% SERVICE CLASS $ 226.80 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.90% SERVICE CLASS $ 224.83 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 37.47 15
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 212.03 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 390.01 130
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $ 289.95 3
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $1,472.64 215
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.80% A $ 213.59 13
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.90% A $ 380.73 66
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% B $ 198.63 61
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% B $ 177.24 107
|
The accompanying notes are an integral part of these financial statements.
FSA-37
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
MULTIMANAGER CORE BOND............................ 0.00% A $ 14.28 87
MULTIMANAGER CORE BOND............................ 0.00% A $168.48 --
MULTIMANAGER CORE BOND............................ 0.00% A $178.30 97
MULTIMANAGER CORE BOND............................ 0.60% A $169.75 3
MULTIMANAGER CORE BOND............................ 0.00% B $183.79 100
MULTIMANAGER CORE BOND............................ 0.60% B $165.92 121
MULTIMANAGER CORE BOND............................ 0.80% B $160.33 --
MULTIMANAGER CORE BOND............................ 0.90% B $157.61 15
MULTIMANAGER MID CAP GROWTH....................... 0.00% A $457.16 24
MULTIMANAGER MID CAP GROWTH....................... 0.60% A $252.28 1
MULTIMANAGER MID CAP GROWTH....................... 0.00% B $403.71 11
MULTIMANAGER MID CAP GROWTH....................... 0.60% B $235.29 41
MULTIMANAGER MID CAP GROWTH....................... 0.80% B $355.92 --
MULTIMANAGER MID CAP GROWTH....................... 0.90% B $223.50 6
MULTIMANAGER MID CAP VALUE........................ 0.00% A $ 29.99 15
MULTIMANAGER MID CAP VALUE........................ 0.00% A $263.82 --
MULTIMANAGER MID CAP VALUE........................ 0.00% A $400.77 19
MULTIMANAGER MID CAP VALUE........................ 0.60% A $240.23 1
MULTIMANAGER MID CAP VALUE........................ 0.00% B $262.46 17
MULTIMANAGER MID CAP VALUE........................ 0.60% B $236.93 78
MULTIMANAGER MID CAP VALUE........................ 0.80% B $228.95 --
MULTIMANAGER MID CAP VALUE........................ 0.90% B $225.07 8
MULTIMANAGER TECHNOLOGY........................... 0.00% A $ 51.76 37
MULTIMANAGER TECHNOLOGY........................... 0.00% A $723.43 28
MULTIMANAGER TECHNOLOGY........................... 0.60% A $365.30 3
MULTIMANAGER TECHNOLOGY........................... 0.00% B $588.13 46
MULTIMANAGER TECHNOLOGY........................... 0.60% B $327.27 234
MULTIMANAGER TECHNOLOGY........................... 0.80% B $518.52 1
MULTIMANAGER TECHNOLOGY........................... 0.90% B $310.88 12
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 12.85 72
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 49.95 20
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.00% ADVISOR CLASS $ 62.55 116
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.60% ADVISOR CLASS $ 59.36 30
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.80% ADVISOR CLASS $ 58.33 --
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.90% ADVISOR CLASS $ 57.82 8
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.00% CLASS II $189.91 41
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.60% CLASS II $180.23 26
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.80% CLASS II $177.10 --
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.90% CLASS II $175.55 3
TARGET 2015 ALLOCATION............................ 0.00% B $ 19.19 41
TARGET 2015 ALLOCATION............................ 0.00% B $150.86 6
TARGET 2025 ALLOCATION............................ 0.00% B $ 21.74 95
TARGET 2025 ALLOCATION............................ 0.00% B $109.58 4
TARGET 2025 ALLOCATION............................ 0.00% B $161.71 22
TARGET 2025 ALLOCATION............................ 0.60% B $107.18 33
TARGET 2025 ALLOCATION............................ 0.80% B $106.39 --
TARGET 2035 ALLOCATION............................ 0.00% B $ 23.39 57
TARGET 2035 ALLOCATION............................ 0.00% B $110.83 5
|
The accompanying notes are an integral part of these financial statements.
FSA-38
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- -------------------- ---------- -----------
TARGET 2035 ALLOCATION............................ 0.00% B $167.54 9
TARGET 2035 ALLOCATION............................ 0.60% B $108.41 12
TARGET 2045 ALLOCATION............................ 0.00% B $ 24.87 36
TARGET 2045 ALLOCATION............................ 0.00% B $111.69 9
TARGET 2045 ALLOCATION............................ 0.00% B $170.79 4
TARGET 2045 ALLOCATION............................ 0.60% B $109.25 2
TARGET 2055 ALLOCATION............................ 0.00% B $ 11.41 8
TARGET 2055 ALLOCATION............................ 0.00% B $114.10 6
TARGET 2055 ALLOCATION............................ 0.60% B $111.61 1
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.00% CLASS 2 $109.63 93
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.60% CLASS 2 $104.04 35
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.80% CLASS 2 $102.24 --
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.90% CLASS 2 $101.35 32
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $ 12.71 304
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $127.06 236
TEMPLETON GLOBAL BOND VIP FUND.................... 0.60% CLASS 2 $120.58 93
TEMPLETON GLOBAL BOND VIP FUND.................... 0.80% CLASS 2 $118.49 --
TEMPLETON GLOBAL BOND VIP FUND.................... 0.90% CLASS 2 $117.46 10
TEMPLETON GROWTH VIP FUND......................... 0.00% CLASS 2 $154.60 18
TEMPLETON GROWTH VIP FUND......................... 0.60% CLASS 2 $146.72 9
TEMPLETON GROWTH VIP FUND......................... 0.80% CLASS 2 $144.17 --
TEMPLETON GROWTH VIP FUND......................... 0.90% CLASS 2 $142.91 2
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.00% CLASS S $ 59.79 102
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.60% CLASS S $ 56.74 40
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.80% CLASS S $ 55.76 --
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.90% CLASS S $ 55.27 1
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX
PORTFOLIO........................................ 0.60% INVESTOR SHARE CLASS $271.11 48
|
The accompanying notes are an integral part of these financial statements.
* Contract charges reflect the annual mortality, expense risk, financial
accounting and other expenses related to the Variable Investment Options.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
***Variable Investment Options where Units Outstanding are less than 500 are
denoted by a --.
FSA-39
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC 1290 VT EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- -------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 29,525 $ 187,110 $ 17,594 $ 437,285 $ 235,744
Expenses:
Asset-based charges...................................... 2,294 3,877 266 43,938 38,148
--------- ----------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 27,231 183,233 17,328 393,347 197,596
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,812 74,977 (4,083) (151,687) (60,749)
Net realized gain distribution from the Portfolios....... 28,380 286,690 -- 5,900,263 431,910
--------- ----------- -------- ----------- -----------
Net realized gain (loss)................................... 30,192 361,667 (4,083) 5,748,576 371,161
--------- ----------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (131,330) (1,013,423) (14,411) (8,691,132) (1,393,740)
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (101,138) (651,756) (18,494) (2,942,556) (1,022,579)
--------- ----------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (73,907) $ (468,523) $ (1,166) $(2,549,209) $ (824,983)
========= =========== ======== =========== ===========
|
1290 VT GAMCO
SMALL COMPANY
VALUE*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,072,954
Expenses:
Asset-based charges...................................... 385,861
------------
NET INVESTMENT INCOME (LOSS)................................ 687,093
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 8,163,083
Net realized gain distribution from the Portfolios....... 8,697,766
------------
Net realized gain (loss)................................... 16,860,849
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (47,823,307)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (30,962,458)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(30,275,365)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-40
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R)/ /GLOBAL
1290 VT SMALL
SMARTBETA 1290 VT SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
--------- ---------------- -------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 16,542 $ 29,568 $ 582,071 $ 1,836
Expenses:
Asset-based charges...................................... 1,366 8,928 34,176 18,804
--------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 15,176 20,640 547,895 (16,968)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 19,022 69,388 273,364 (10,564)
Net realized gain distribution from the Portfolios....... 48,283 77,370 1,029,563 367,949
--------- --------- ----------- -----------
Net realized gain (loss)................................... 67,305 146,758 1,302,927 357,385
--------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (170,751) (310,402) (4,268,829) (1,368,473)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (103,446) (163,644) (2,965,902) (1,011,088)
--------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (88,270) $(143,004) $(2,418,007) $(1,028,056)
========= ========= =========== ===========
|
AMERICAN FUNDS
INSURANCE AXA 400
SERIES(R)/ /NEW MANAGED
WORLD FUND(R)// VOLATILITY*
--------------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 131,103 $ 48,767
Expenses:
Asset-based charges...................................... 31,103 14,831
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 100,000 33,936
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 378,720 114,935
Net realized gain distribution from the Portfolios....... 395,347 376,170
----------- -----------
Net realized gain (loss)................................... 774,067 491,105
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,640,473) (1,143,278)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (2,866,406) (652,173)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(2,766,406) $ (618,237)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-41
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA 500 AXA 2000 AXA
MANAGED MANAGED AXA AGGRESSIVE AXA BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- -------------- ------------ ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 125,442 $ 37,036 $ 2,405,923 $ 493,984 $ 427,441
Expenses:
Asset-based charges...................................... 21,218 10,545 259,494 -- 90,271
----------- ----------- ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 104,224 26,491 2,146,429 493,984 337,170
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 391,508 121,872 3,175,762 504,832 (134,573)
Net realized gain distribution from the Portfolios....... 248,666 297,800 8,449,143 840,116 668,840
----------- ----------- ------------ ----------- -----------
Net realized gain (loss)................................... 640,174 419,672 11,624,905 1,344,948 534,267
----------- ----------- ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,453,693) (1,047,416) (26,889,043) (3,504,352) (1,402,478)
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (813,519) (627,744) (15,264,138) (2,159,404) (868,211)
----------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (709,295) $ (601,253) $(13,117,709) $(1,665,420) $ (531,041)
=========== =========== ============ =========== ===========
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 90,726
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 90,726
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 93,339
Net realized gain distribution from the Portfolios....... 157,351
---------
Net realized gain (loss)................................... 250,690
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (584,510)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (333,820)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(243,094)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-42
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA GLOBAL AXA
AXA CONSERVATIVE- EQUITY INTERNATIONAL
CONSERVATIVE PLUS MANAGED AXA GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- ------------ ----------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 37,655 $ 469,764 $ 1,447,708 $ 758,543 $ 1,023,445
Expenses:
Asset-based charges...................................... -- 71,389 495,063 -- 157,039
--------- ----------- ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 37,655 398,375 952,645 758,543 866,406
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 15,262 56,560 4,868,477 1,376,410 699,419
Net realized gain distribution from the Portfolios....... 66,473 1,290,524 10,275,682 1,084,145 --
--------- ----------- ------------ ----------- ------------
Net realized gain (loss)................................... 81,735 1,347,084 15,144,159 2,460,555 699,419
--------- ----------- ------------ ----------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (157,944) (2,934,113) (33,462,490) (7,047,901) (10,752,214)
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (76,209) (1,587,029) (18,318,331) (4,587,346) (10,052,795)
--------- ----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (38,554) $(1,188,654) $(17,365,686) $(3,828,803) $ (9,186,389)
========= =========== ============ =========== ============
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 72,950
Expenses:
Asset-based charges...................................... 2,476
---------
NET INVESTMENT INCOME (LOSS)................................ 70,474
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 10,355
Net realized gain distribution from the Portfolios....... 11.613
---------
Net realized gain (loss)................................... 21,968
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (677,449)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (655,481)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,007)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-43
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA LARGE CAP
INTERNATIONAL AXA LARGE CAP GROWTH AXA LARGE CAP
VALUE MANAGED CORE MANAGED MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- ------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,363,308 $ 327,920 $ 1,344,033 $ 9,787,523
Expenses:
Asset-based charges...................................... 261,422 56,142 1,185,531 1,831,949
------------ ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,101,886 271,778 158,502 7,955,574
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,282,245 983,479 15,530,053 8,186,863
Net realized gain distribution from the Portfolios....... -- 2,511,011 23,239,699 18,387,738
------------ ----------- ------------ ------------
Net realized gain (loss)................................... 1,282,245 3,494,490 38,769,752 26,574,601
------------ ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (16,007,666) (5,705,806) (46,091,408) (74,400,199)
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (14,725,421) (2,211,316) (7,321,656) (47,825,598)
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(13,623,535) $(1,939,538) $ (7,163,154) $(39,870,024)
============ =========== ============ ============
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 2,456,713 $ 13,451,190
Expenses:
Asset-based charges...................................... 835,801 4,341,998
------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,620,912 9,109,192
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 11,499,282 4,755,417
Net realized gain distribution from the Portfolios....... 15,882,536 33,867,487
------------ ------------
Net realized gain (loss)................................... 27,381,818 38,622,904
------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (56,235,308) (92,345,560)
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (28,853,490) (53,722,656)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(27,232,578) $(44,613,464)
============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-44
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,379,316 $ 6,863,026 $ 270,405 $ 145,975 $ --
Expenses:
Asset-based charges...................................... -- 723,027 1,016,191 222,759 116,749
------------ ------------ ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,379,316 6,139,999 (745,786) (76,784) (116,749)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,355,344 9,900,405 6,278,018 699,421 1,447,958
Net realized gain distribution from the Portfolios....... 2,651,571 20,941,335 33,830,854 7,174,055 2,536,155
------------ ------------ ------------ ----------- -----------
Net realized gain (loss)................................... 4,006,915 30,841,740 40,108,872 7,873,476 3,984,113
------------ ------------ ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (11,167,077) (65,552,287) (55,823,981) (7,907,125) (4,449,201)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (7,160,162) (34,710,547) (15,715,109) (33,649) (465,088)
------------ ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (5,780,846) $(28,570,548) $(16,460,895) $ (110,433) $ (581,837)
============ ============ ============ =========== ===========
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 39,740
Expenses:
Asset-based charges...................................... 109,026
-----------
NET INVESTMENT INCOME (LOSS)................................ (69,286)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,177,833
Net realized gain distribution from the Portfolios....... 4,261,319
-----------
Net realized gain (loss)................................... 6,439,152
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (7,721,058)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,281,906)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,351,192)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-45
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM CHARTER/SM CHARTER/SM
ALLOCATION V.I. /MULTI-SECTOR /SMALL CAP /SMALL CAP
FUND BOND* GROWTH* VALUE*
--------------- ------------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 53,846 $ 1,553,951 $ 529,392 $ 350,744
Expenses:
Asset-based charges...................................... -- 304,802 21,736 71,746
--------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 53,846 1,249,149 507,656 278,998
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 40,350 (1,327,086) 1,143,444 1,842,779
Net realized gain distribution from the Portfolios....... 271,266 -- 1,120,510 427,470
--------- ----------- ----------- -----------
Net realized gain (loss)................................... 311,616 (1,327,086) 2,263,954 2,270,249
--------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (804,269) (634,315) (3,652,786) (6,029,386)
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (492,653) (1,961,401) (1,388,832) (3,759,137)
--------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(438,807) $ (712,252) $ (881,176) $(3,480,139)
========= =========== =========== ===========
|
CLEARBRIDGE EQ/AMERICAN
VARIABLE MID CENTURY MID
CAP PORTFOLIO CAP VALUE*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,261 $ 291,950
Expenses:
Asset-based charges...................................... -- 24,484
-------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,261 267,466
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (4,618) (60,301)
Net realized gain distribution from the Portfolios....... 12,037 --
-------- -----------
Net realized gain (loss)................................... 7,419 (60,301)
-------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (95,687) (5,859,557)
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (88,268) (5,919,858)
-------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(87,007) $(5,652,392)
======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-46
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND
EQUITY* RESEARCH* STOCK INDEX* INDEX*
------------ ------------ ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,329,797 $ 723,444 $ 22,034,286 $ 935,134
Expenses:
Asset-based charges...................................... 682,149 613,888 8,956,364 127,079
------------ ------------ ------------- ---------
NET INVESTMENT INCOME (LOSS)................................ 2,647,648 109,556 13,077,922 808,055
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,319,257 5,605,571 78,552,593 (233,740)
Net realized gain distribution from the Portfolios....... 17,059,664 14,449,279 79,838,711 --
------------ ------------ ------------- ---------
Net realized gain (loss)................................... 26,378,921 20,054,850 158,391,304 (233,740)
------------ ------------ ------------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (45,322,323) (26,127,363) (267,534,071) (607,788)
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (18,943,402) (6,072,513) (109,142,767) (841,528)
------------ ------------ ------------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(16,295,754) $ (5,962,957) $ (96,064,845) $ (33,473)
============ ============ ============= =========
|
EQ/FIDELITY
INSTITUTIONAL
EQ/EQUITY 500 AM/SM/ LARGE
INDEX* CAP*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,879,978 $ 245,558
Expenses:
Asset-based charges...................................... 2,916,205 75,695
------------- ------------
NET INVESTMENT INCOME (LOSS)................................ 9,963,773 169,863
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 43,760,656 (179,846)
Net realized gain distribution from the Portfolios....... 19,680,609 --
------------- ------------
Net realized gain (loss)................................... 63,441,265 (179,846)
------------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (117,357,501) (12,029,625)
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (53,916,236) (12,209,471)
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (43,952,463) $(12,039,608)
============= ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-47
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
RISING STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
DIVIDENDS*(A) INCOME*(A) BOND PLUS* VALUE*(A) BOND*
------------- ----------- ---------- ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 160,499 $ 237,239 $ 228,268 $ 19,719 $ 618,408
Expenses:
Asset-based charges...................................... 30,172 13,856 44,981 2,938 200,262
----------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS)................................ 130,327 223,383 183,287 16,781 418,146
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (17,469) (7,027) (250,669) (9,315) (586,240)
Net realized gain distribution from the Portfolios....... -- -- -- -- --
----------- --------- --------- --------- ---------
Net realized gain (loss)................................... (17,469) (7,027) (250,669) (9,315) (586,240)
----------- --------- --------- --------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,195,962) (654,159) (260,264) (849,455) 262,219
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,213,431) (661,186) (510,933) (858,770) (324,021)
----------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,083,104) $(437,803) $(327,646) $(841,989) $ 94,125
=========== ========= ========= ========= =========
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 7,619,059
Expenses:
Asset-based charges...................................... 1,390,069
------------
NET INVESTMENT INCOME (LOSS)................................ 6,228,990
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (3,015,502)
Net realized gain distribution from the Portfolios....... --
------------
Net realized gain (loss)................................... (3,015,502)
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (53,733,576)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (56,749,078)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(50,520,088)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-48
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL
COMSTOCK* ESTATE*(A) GROWTH*(A) EQ/IVY ENERGY*(A)
----------- ----------- ------------- -----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,142 $ 205,535 $ 69,985 $ 12,080
Expenses:
Asset-based charges...................................... 54,866 11,843 10,889 4,528
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 400,276 193,692 59,096 7,552
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 818,413 15,837 (34,887) (64,522)
Net realized gain distribution from the Portfolios....... 1,189,039 -- -- --
----------- --------- ----------- -----------
Net realized gain (loss)................................... 2,007,452 15,837 (34,887) (64,522)
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (6,065,466) (688,317) (1,744,827) (4,497,704)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,058,014) (672,480) (1,779,714) (4,562,226)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,657,738) $(478,788) $(1,720,618) $(4,554,674)
=========== ========= =========== ===========
|
EQ/IVY SCIENCE
EQ/IVY MID CAP AND
GROWTH*(A) TECHNOLOGY*(A)
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,296 $ --
Expenses:
Asset-based charges...................................... 15,652 12,806
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (12,356) (12,806)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (31,541) (173,400)
Net realized gain distribution from the Portfolios....... -- --
----------- -----------
Net realized gain (loss)................................... (31,541) (173,400)
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,192,880) (3,885,520)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (3,224,421) (4,058,920)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,236,777) $(4,071,726)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-49
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EMERGING EQ/MFS
VALUE EQ/LARGE CAP EQ/LARGE CAP MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* VALUE INDEX* EQUITY*(A) GROWTH*
-------------- ------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 516,934 $ 1,055,019 $ 560,588 $ 93,930 $ 456,893
Expenses:
Asset-based charges...................................... 184,030 701,405 77,527 16,961 114,652
------------ ------------ ----------- --------- ------------
NET INVESTMENT INCOME (LOSS)................................ 332,904 353,614 483,061 76,969 342,241
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,145,573 7,355,094 1,136,607 (5,780) 1,435,573
Net realized gain distribution from the Portfolios....... 3,983,139 10,055,518 1,108,532 -- 4,720,516
------------ ------------ ----------- --------- ------------
Net realized gain (loss)................................... 6,128,712 17,410,612 2,245,139 (5,780) 6,156,089
------------ ------------ ----------- --------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (14,604,905) (21,527,934) (5,163,413) (713,799) (11,400,219)
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (8,476,193) (4,117,322) (2,918,274) (719,579) (5,244,130)
------------ ------------ ----------- --------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (8,143,289) $ (3,763,708) $(2,435,213) $(642,610) $ (4,901,889)
============ ============ =========== ========= ============
|
EQ/MFS
INTERNATIONAL
VALUE*(A)
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... 43,338
-----------
NET INVESTMENT INCOME (LOSS)................................ (43,338)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (57,675)
Net realized gain distribution from the Portfolios....... --
-----------
Net realized gain (loss)................................... (57,675)
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,576,888)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,634,563)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,677,901)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-50
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/MFS UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL
SERIES*(A) INDEX* MARKET* RETURN*(A)
---------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,447 $ 1,681,758 $1,860,580 $110,699
Expenses:
Asset-based charges...................................... -- 441,150 567,381 8,314
-------- ------------ ---------- --------
NET INVESTMENT INCOME (LOSS)................................ 12,447 1,240,608 1,293,199 102,385
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (5,831) 6,941,067 3,973 (5,300)
Net realized gain distribution from the Portfolios....... -- 11,540,383 -- 40,199
-------- ------------ ---------- --------
Net realized gain (loss)................................... (5,831) 18,481,450 3,973 34,899
-------- ------------ ---------- --------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (89,090) (37,940,546) 3,115 (78,883)
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (94,921) (19,459,096) 7,088 (43,984)
-------- ------------ ---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(82,474) $(18,218,488) $1,300,287 $ 58,401
======== ============ ========== ========
|
EQ/PIMCO TOTAL EQ/PIMCO ULTRA
RETURN*(A) SHORT BOND*
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,989 $ 663,125
Expenses:
Asset-based charges...................................... 33,376 87,259
---------- ---------
NET INVESTMENT INCOME (LOSS)................................ 422,613 575,866
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 6,961 13,680
Net realized gain distribution from the Portfolios....... 231,763 --
---------- ---------
Net realized gain (loss)................................... 238,724 13,680
---------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. 410,518 (362,655)
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 649,242 (348,975)
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $1,071,855 $ 226,891
========== =========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-51
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES*(A) & INCOME*
---------- -------------- ------------ ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 719,770 $ 1,012,806 $ -- $ -- $ 46,880
Expenses:
Asset-based charges...................................... 179,042 231,124 356,872 -- 47,789
--------- ------------ ------------ --------- -----------
NET INVESTMENT INCOME (LOSS)................................ 540,728 781,682 (356,872) -- (909)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (305,373) 2,535,372 8,673,333 (29,755) 832,101
Net realized gain distribution from the Portfolios....... -- 8,785,368 9,680,978 -- 1,477,029
--------- ------------ ------------ --------- -----------
Net realized gain (loss)................................... (305,373) 11,320,740 18,354,311 (29,755) 2,309,130
--------- ------------ ------------ --------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (415,538) (23,894,445) (20,766,318) (823,342) (4,100,675)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (720,911) (12,573,705) (2,412,007) (853,097) (1,791,545)
--------- ------------ ------------ --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(180,183) $(11,792,023) $ (2,768,879) $(853,097) $(1,792,454)
========= ============ ============ ========= ===========
|
FIDELITY(R)/ /VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,177
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 15,177
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,091
Net realized gain distribution from the Portfolios....... 61,893
---------
Net realized gain (loss)................................... 126,984
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (225,936)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (98,952)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (83,775)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-52
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP GOVERNMENT GROWTH &
EQUITY-INCOME MONEY MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- ---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 36,513 $19,493 $ 19,243
Expenses:
Asset-based charges...................................... -- -- 18,081
--------- ------- -----------
NET INVESTMENT INCOME (LOSS)................................ 36,513 19,493 1,162
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 25,097 -- 235,127
Net realized gain distribution from the Portfolios....... 78,863 -- 584,857
--------- ------- -----------
Net realized gain (loss)................................... 103,960 -- 819,984
--------- ------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (283,361) -- (1,691,998)
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (179,401) -- (872,014)
--------- ------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(142,888) $19,493 $ (870,852)
========= ======= ===========
|
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP INVESTMENT
HIGH INCOME GRADE BOND FIDELITY(R)/ /VIP MID
PORTFOLIO PORTFOLIO CAP PORTFOLIO
--------------- --------------- -------------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 159,061 $ 854,287 $ 134,741
Expenses:
Asset-based charges...................................... -- -- 54,810
--------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 159,061 854,287 79,931
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (41,662) (236,661) 432,310
Net realized gain distribution from the Portfolios....... -- 228,433 2,788,495
--------- ----------- -----------
Net realized gain (loss)................................... (41,662) (8,228) 3,220,805
--------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (210,317) (1,053,399) (8,193,396)
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (251,979) (1,061,627) (4,972,591)
--------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (92,918) $ (207,340) $(4,892,660)
========= =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-53
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,276 $ 2,948 $ 221,315 $ 114,131
Expenses:
Asset-based charges...................................... -- -- 16,986 29,818
--------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,276 2,948 204,329 84,313
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,681 11,469 53,533 (76,742)
Net realized gain distribution from the Portfolios....... 60,807 20,800 344,615 1,943,686
--------- -------- ----------- -----------
Net realized gain (loss)................................... 70,488 32,269 398,148 1,866,944
--------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (287,144) (93,356) (1,447,043) (3,604,606)
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (216,656) (61,087) (1,048,895) (1,737,662)
--------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(204,380) $(58,139) $ (844,566) $(1,653,349)
========= ======== =========== ===========
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 329,880 $ 4,983
Expenses:
Asset-based charges...................................... -- 9,076
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 329,880 (4,093)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 77,751 (78,273)
Net realized gain distribution from the Portfolios....... 529,295 638,281
----------- -----------
Net realized gain (loss)................................... 607,046 560,008
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (2,082,480) (1,054,884)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,475,434) (494,876)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,145,554) $ (498,969)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-54
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ -- $ 15,245 $ 2,175,033 $ 52,406
Expenses:
Asset-based charges...................................... 9,777 -- 50,806 33,637
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (9,777) 15,245 2,124,227 18,769
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (75,353) (32,541) (123,106) 60,209
Net realized gain distribution from the Portfolios....... 412,203 71,641 -- 4,646,383
----------- --------- ----------- -----------
Net realized gain (loss)................................... 336,850 39,100 (123,106) 4,706,592
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,213,467) (150,013) (2,884,856) (5,322,774)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (876,617) (110,913) (3,007,962) (616,182)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (886,394) $ (95,668) $ (883,735) $ (597,413)
=========== ========= =========== ===========
|
MFS(R)/
/MASSACHUSETTS
INVESTORS
MFS(R)/ /INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,740 $ 16,035
Expenses:
Asset-based charges...................................... 9,167 11,865
--------- ---------
NET INVESTMENT INCOME (LOSS)................................ 6,573 4,170
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 113,500 123,198
Net realized gain distribution from the Portfolios....... 158,522 283,372
--------- ---------
Net realized gain (loss)................................... 272,022 406,570
--------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (453,820) (499,761)
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (181,798) (93,191)
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(175,225) $ (89,021)
========= =========
|
The accompanying notes are an integral part of these financial statements.
FSA-55
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 625,360 $ 1,667,611 $ -- $ 298,366 $ 224,598
Expenses:
Asset-based charges...................................... 2,595,708 153,977 83,947 158,560 561,514
------------ ----------- ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ (1,970,348) 1,513,634 (83,947) 139,806 (336,916)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 29,213,533 (703,201) 252,048 1,859,817 14,706,489
Net realized gain distribution from the Portfolios....... 47,304,632 -- 4,056,202 3,122,309 15,819,891
------------ ----------- ----------- ------------ ------------
Net realized gain (loss)................................... 76,518,165 (703,201) 4,308,250 4,982,126 30,526,380
------------ ----------- ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (75,548,437) (1,264,909) (5,865,470) (10,194,593) (27,829,523)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 969,728 (1,968,110) (1,557,220) (5,212,467) 2,696,857
------------ ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (1,000,620) $ (454,476) $(1,641,167) $ (5,072,661) $ 2,359,941
============ =========== =========== ============ ============
|
NATURAL
RESOURCES
PORTFOLIO
---------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ --
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (32,443)
Net realized gain distribution from the Portfolios....... --
---------
Net realized gain (loss)................................... (32,443)
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (553,290)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (585,733)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,733)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-56
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R)/ T. ROWE PRICE
/STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 210,249 $ 249,839 $ 30,674 $ 159,556 $ 77,113
Expenses:
Asset-based charges...................................... 17,057 36,040 -- 18,915 7,241
----------- ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS)................................ 193,192 213,799 30,674 140,641 69,872
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (927,692) 162,536 39,836 133,812 131,610
Net realized gain distribution from the Portfolios....... -- 1,295,193 129,786 218,179 59,052
----------- ----------- --------- ----------- ---------
Net realized gain (loss)................................... (927,692) 1,457,729 169,622 351,991 190,662
----------- ----------- --------- ----------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (846,643) (3,057,011) (272,000) (1,093,575) (656,629)
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,774,335) (1,599,282) (102,378) (741,584) (465,967)
----------- ----------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,581,143) $(1,385,483) $ (71,704) $ (600,943) $(396,095)
=========== =========== ========= =========== =========
|
TARGET 2045
ALLOCATION*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 45,032
Expenses:
Asset-based charges...................................... 1,282
---------
NET INVESTMENT INCOME (LOSS)................................ 43,750
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,222
Net realized gain distribution from the Portfolios....... 28,896
---------
Net realized gain (loss)................................... 94,118
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (386,721)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (292,603)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(248,853)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-57
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS VIP GLOBAL BOND GROWTH VIP GLOBAL HARD
ALLOCATION* FUND VIP FUND FUND ASSETS FUND
----------- ----------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 13,103 $ 138,307 $ -- $ 99,174 $ --
Expenses:
Asset-based charges...................................... 640 45,365 81,519 12,510 21,206
--------- ----------- ---------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,463 92,942 (81,519) 86,664 (21,206)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 42,868 479,829 (788,411) (57) (328,197)
Net realized gain distribution from the Portfolios....... -- -- -- 420,018 --
--------- ----------- ---------- ----------- -----------
Net realized gain (loss)................................... 42,868 479,829 (788,411) 419,961 (328,197)
--------- ----------- ---------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (133,277) (3,670,319) 1,674,585 (1,279,590) (3,047,878)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (90,409) (3,190,490) 886,174 (859,629) (3,376,075)
--------- ----------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (77,946) $(3,097,548) $ 804,655 $ (772,965) $(3,397,281)
========= =========== ========== =========== ===========
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 176,397
Expenses:
Asset-based charges...................................... 68,389
-----------
NET INVESTMENT INCOME (LOSS)................................ 108,008
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 666,497
Net realized gain distribution from the Portfolios....... 171,706
-----------
Net realized gain (loss)................................... 838,203
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,940,874)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,102,671)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (994,663)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-58
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT DOUBLELINE
1290 VT CONVERTIBLE 1290 VT DOUBLELINE OPPORTUNISTIC
SECURITIES* DYNAMIC ALLOCATION* BOND*(A)
-------------------- ------------------------ ------------------
2018 2017 2018 2017 2018 2017
---------- -------- ----------- ----------- -------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 27,231 $ 14,184 $ 183,233 $ 63,423 $ 17,328 $ 3,325
Net realized gain (loss)............... 30,192 15,721 361,667 612,239 (4,083) 141
Net change in unrealized appreciation
(depreciation) of investments........ (131,330) (19,816) (1,013,423) 314,599 (14,411) (2,459)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from operations............ (73,907) 10,089 (468,523) 990,261 (1,166) 1,007
---------- -------- ----------- ----------- -------- --------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 160,701 22,985 1,618,739 2,164,531 180,941 13,745
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 571,644 571,621 (1,614,365) 479,653 261,054 187,672
Redemptions for contract benefits and
terminations......................... (12,604) -- (292,789) (42,259) (13,392) --
Contract maintenance charges........... (46,131) (8,900) (796,144) (776,878) (20,634) (2,463)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 673,610 585,706 (1,084,559) 1,825,047 407,969 198,954
---------- -------- ----------- ----------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS... 599,703 595,795 (1,553,082) 2,815,308 406,803 199,961
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 604,521 8,726 12,307,449 9,492,141 199,961 --
---------- -------- ----------- ----------- -------- --------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,204,224 $604,521 $10,754,367 $12,307,449 $606,764 $199,961
========== ======== =========== =========== ======== ========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on May 19, 2017.
FSA-59
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT GAMCO MERGERS 1290 VT GAMCO SMALL
1290 VT EQUITY INCOME* & ACQUISITIONS* COMPANY VALUE*
------------------------ ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 393,347 $ 312,075 $ 197,596 $ (9,548) $ 687,093 $ 748,534
Net realized gain (loss)............... 5,748,576 1,603,780 371,161 892,978 16,860,849 20,994,949
Net change in unrealized appreciation
(depreciation) of investments........ (8,691,132) 1,166,705 (1,393,740) 3,765 (47,823,307) 5,308,912
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (2,549,209) 3,082,560 (824,983) 887,195 (30,275,365) 27,052,395
----------- ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,194,996 1,314,128 1,072,925 1,446,603 15,161,328 14,715,495
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (566,175) (409,866) (307,865) (163,664) (7,030,458) (5,116,218)
Redemptions for contract benefits and
terminations......................... (724,484) (647,739) (597,580) (370,720) (6,704,170) (5,818,950)
Contract maintenance charges........... (720,085) (728,372) (444,420) (462,204) (5,986,014) (5,980,113)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (815,748) (471,849) (276,940) 450,015 (4,559,314) (2,199,786)
----------- ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,364,957) 2,610,711 (1,101,923) 1,337,210 (34,834,679) 24,852,609
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 22,651,270 20,040,559 16,191,996 14,854,786 197,726,749 172,874,140
----------- ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $19,286,313 $22,651,270 $15,090,073 $16,191,996 $162,892,070 $197,726,749
=========== =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-60
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT SMARTBETA 1290 VT SOCIALLY ALL ASSET
EQUITY* RESPONSIBLE* GROWTH-ALT 20*(B)
-------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- -------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 15,176 $ 6,663 $ 20,640 $ 22,629 $ 547,895 $ 370,223
Net realized gain (loss)............... 67,305 22,537 146,758 601,202 1,302,927 834,875
Net change in unrealized appreciation
(depreciation) of investments........ (170,751) 44,110 (310,402) (28,706) (4,268,829) 2,422,878
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (88,270) 73,310 (143,004) 595,125 (2,418,007) 3,627,976
---------- -------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 264,152 76,181 171,215 204,225 3,787,678 4,217,718
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 569,089 296,031 (577,063) 235,718 1,765,694 3,884,575
Redemptions for contract benefits and
terminations......................... (16,795) (7,598) (75,358) (54,567) (656,921) (1,123,996)
Contract maintenance charges........... (53,674) (20,971) (96,397) (99,583) (1,541,110) (1,370,437)
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 762,772 343,643 (577,603) 285,793 3,355,341 5,607,860
---------- -------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 674,502 416,953 (720,607) 880,918 937,334 9,235,836
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 598,100 181,147 3,521,671 2,640,753 28,928,635 19,692,799
---------- -------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,272,602 $598,100 $2,801,064 $3,521,671 $29,865,969 $28,928,635
========== ======== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(b)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a merger
on May 19, 2017.
FSA-61
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AMERICAN FUNDS
INSURANCE SERIES(R)/ AMERICAN FUNDS
/GLOBAL SMALL INSURANCE SERIES(R)/ /NEW AXA 400 MANAGED
CAPITALIZATION FUND/SM/ WORLD FUND(R)// VOLATILITY*
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (16,968) $ 11,123 $ 100,000 $ 72,376 $ 33,936 $ 24,791
Net realized gain (loss)............... 357,385 (177,465) 774,067 41,899 491,105 525,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,368,473) 1,384,139 (3,640,473) 2,374,832 (1,143,278) 136,239
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,028,056) 1,217,797 (2,766,406) 2,489,107 (618,237) 686,901
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,177,179 864,377 2,404,063 1,605,340 327,447 386,328
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,104,726 1,467,288 7,519,379 1,208,476 (348,264) 390,864
Redemptions for contract benefits and
terminations......................... (117,695) (113,887) (270,596) (76,397) (173,226) (97,331)
Contract maintenance charges........... (225,161) (186,450) (484,873) (374,039) (195,259) (199,662)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,939,049 2,031,328 9,167,973 2,363,380 (389,302) 480,199
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 910 -- -- --
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 910,993 3,249,125 6,402,477 4,852,487 (1,007,539) 1,167,100
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,356,444 4,107,319 12,710,631 7,858,144 5,412,820 4,245,720
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 8,267,437 $7,356,444 $19,113,108 $12,710,631 $ 4,405,281 $5,412,820
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-62
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA 500 MANAGED AXA 2000 MANAGED AXA AGGRESSIVE
VOLATILITY* VOLATILITY* ALLOCATION*
----------------------- ----------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ---------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 104,224 $ 78,318 $ 26,491 $ 20,351 $ 2,146,429 $ 1,959,042
Net realized gain (loss)............... 640,174 386,416 419,672 327,501 11,624,905 7,663,915
Net change in unrealized appreciation
(depreciation) of investments........ (1,453,693) 1,023,722 (1,047,416) 146,767 (26,889,043) 15,671,433
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (709,295) 1,488,456 (601,253) 494,619 (13,117,709) 25,294,390
----------- ---------- ----------- ---------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 704,550 1,030,494 299,478 396,055 9,232,836 9,347,431
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,261,153 983,229 337,946 544,488 (2,859,522) (2,743,640)
Redemptions for contract benefits and
terminations......................... (315,049) (256,066) (206,659) (90,180) (8,497,264) (6,733,933)
Contract maintenance charges........... (459,300) (390,590) (172,686) (154,578) (5,137,752) (5,688,391)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,191,354 1,367,067 258,079 695,785 (7,261,702) (5,818,533)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 354 -- (8) -- 31,622 (31,623)
----------- ---------- ----------- ---------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 482,413 2,855,523 (343,182) 1,190,404 (20,347,789) 19,444,234
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 9,742,564 6,887,041 4,479,768 3,289,364 156,317,862 136,873,628
----------- ---------- ----------- ---------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,224,977 $9,742,564 $ 4,136,586 $4,479,768 $135,970,073 $156,317,862
=========== ========== =========== ========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-63
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE
AXA BALANCED STRATEGY* ALLOCATION* GROWTH STRATEGY*
------------------------ ------------------------ ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 493,984 $ 453,939 $ 337,170 $ 223,213 $ 90,726 $ 88,733
Net realized gain (loss)............... 1,344,948 611,887 534,267 639,878 250,690 166,986
Net change in unrealized appreciation
(depreciation) of investments........ (3,504,352) 1,889,026 (1,402,478) 510,514 (584,510) 270,462
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,665,420) 2,954,852 (531,041) 1,373,605 (243,094) 526,181
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 5,722,032 6,324,025 1,853,567 2,307,432 969,701 1,206,742
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,350,703 2,576,437 180,112 (2,239,253) (42,515) 476,425
Redemptions for contract benefits and
terminations......................... (669,939) (409,625) (952,724) (2,283,420) (409,905) (331,042)
Contract maintenance charges........... (2,956,446) (2,677,758) (1,978,918) (2,122,093) (631,149) (601,525)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 3,446,350 5,813,079 (897,963) (4,337,334) (113,868) 750,600
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,780,930 8,767,931 (1,429,004) (2,963,729) (356,962) 1,276,781
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 36,594,273 27,826,342 28,625,473 31,589,202 7,439,026 6,162,245
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $38,375,203 $36,594,273 $27,196,469 $28,625,473 $7,082,064 $7,439,026
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-64
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE-PLUS AXA GLOBAL EQUITY
STRATEGY* ALLOCATION* MANAGED VOLATILITY*
---------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 37,655 $ 27,652 $ 398,375 $ 309,086 $ 952,645 $ 1,015,237
Net realized gain (loss)............... 81,735 60,286 1,347,084 1,183,492 15,144,159 4,468,932
Net change in unrealized appreciation
(depreciation) of investments........ (157,944) 25,697 (2,934,113) 1,119,606 (33,462,490) 26,555,167
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (38,554) 113,635 (1,188,654) 2,612,184 (17,365,686) 32,039,336
---------- ---------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 495,395 456,114 3,211,215 3,410,318 6,390,644 6,738,265
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 210,171 (355,590) (1,159,436) (207,373) (4,868,804) (6,578,272)
Redemptions for contract benefits and
terminations......................... (86,549) (100,328) (1,620,440) (2,659,574) (7,189,203) (8,091,897)
Contract maintenance charges........... (267,787) (263,328) (2,171,492) (2,465,048) (5,416,338) (5,858,570)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 351,230 (263,132) (1,740,153) (1,921,677) (11,083,701) (13,790,474)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 74,999 -- --
---------- ---------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 312,676 (149,497) (2,928,807) 765,506 (28,449,387) 18,248,862
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 2,655,938 2,805,435 32,671,100 31,905,594 148,578,047 130,329,185
---------- ---------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,968,614 $2,655,938 $29,742,293 $32,671,100 $120,128,660 $148,578,047
========== ========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-65
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL CORE AXA INTERNATIONAL
AXA GROWTH STRATEGY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------ ------------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ------------ ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 758,543 $ 882,830 $ 866,406 $ 824,176 $ 70,474 $ 62,830
Net realized gain (loss)............... 2,460,555 971,201 699,419 786,097 21,968 36,065
Net change in unrealized appreciation
(depreciation) of investments........ (7,047,901) 5,354,237 (10,752,214) 12,137,220 (677,449) 503,911
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (3,828,803) 7,208,268 (9,186,389) 13,747,493 (585,007) 602,806
----------- ----------- ------------ ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 9,139,233 10,223,898 2,630,704 2,991,332 224,444 322,549
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (2,947,979) (625,154) (543,969) (6,727,082) 508,221 435,035
Redemptions for contract benefits and
terminations......................... (2,012,292) (1,160,377) (2,653,774) (2,644,300) (69,986) (83,371)
Contract maintenance charges........... (3,886,988) (3,772,921) (2,282,766) (2,463,324) (119,948) (105,347)
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 291,974 4,665,446 (2,849,805) (8,843,374) 542,731 568,866
----------- ----------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (3,536,829) 11,873,714 (12,036,194) 4,904,119 (42,276) 1,171,672
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 62,041,063 50,167,349 63,328,101 58,423,982 3,557,737 2,386,065
----------- ----------- ------------ ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $58,504,234 $62,041,063 $ 51,291,907 $63,328,101 $3,515,461 $3,557,737
=========== =========== ============ =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-66
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL VALUE AXA LARGE CAP CORE AXA LARGE CAP GROWTH
MANAGED VOLATILITY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,101,886 $ 1,270,298 $ 271,778 $ 240,962 $ 158,502 $ 166,666
Net realized gain (loss)............... 1,282,245 869,487 3,494,490 3,065,377 38,769,752 33,443,063
Net change in unrealized appreciation
(depreciation) of investments........ (16,007,666) 14,475,642 (5,705,806) 2,433,165 (46,091,408) 30,503,643
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (13,623,535) 16,615,427 (1,939,538) 5,739,504 (7,163,154) 64,113,372
------------ ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,180,386 4,590,922 978,432 1,068,994 10,055,390 11,169,949
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,272,580) (2,152,559) (208,000) (696,150) (11,713,353) (8,156,800)
Redemptions for contract benefits and
terminations......................... (3,601,571) (4,754,791) (1,083,924) (1,019,355) (12,890,265) (13,253,721)
Contract maintenance charges........... (3,769,617) (4,025,456) (1,144,548) (1,139,899) (10,140,614) (10,719,628)
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,463,382) (6,341,884) (1,458,040) (1,786,410) (24,688,842) (20,960,200)
------------ ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (18,086,917) 10,273,543 (3,397,578) 3,953,094 (31,851,996) 43,153,172
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 85,043,394 74,769,851 31,158,744 27,205,650 275,604,577 232,451,405
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 66,956,477 $85,043,394 $27,761,166 $31,158,744 $243,752,581 $275,604,577
============ =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-67
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA LARGE CAP VALUE AXA MID CAP VALUE AXA MODERATE
MANAGED VOLATILITY* MANAGED VOLATILITY* ALLOCATION*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,955,574 $ 4,232,495 $ 1,620,912 $ 1,330,515 $ 9,109,192 $ 6,420,178
Net realized gain (loss)............... 26,574,601 7,411,354 27,381,818 24,257,383 38,622,904 33,549,894
Net change in unrealized appreciation
(depreciation) of investments........ (74,400,199) 38,606,026 (56,235,308) (1,880,050) (92,345,560) 48,787,704
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (39,870,024) 50,249,875 (27,232,578) 23,707,848 (44,613,464) 88,757,776
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 17,820,235 18,993,249 8,499,182 8,907,612 48,453,618 51,984,557
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (12,015,972) (8,782,703) (7,977,746) (5,021,819) (7,590,887) (23,439,763)
Redemptions for contract benefits and
terminations......................... (18,775,561) (19,995,812) (9,944,141) (10,991,520) (33,236,093) (36,616,401)
Contract maintenance charges........... (18,979,468) (19,831,032) (8,457,814) (8,824,427) (57,722,064) (59,886,427)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (31,950,766) (29,616,298) (17,880,519) (15,930,154) (50,095,426) (67,958,034)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- -- 43,284
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (71,820,790) 20,633,577 (45,113,097) 7,777,694 (94,708,890) 20,843,026
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 415,729,366 395,095,789 216,266,018 208,488,324 897,135,849 876,292,823
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $343,908,576 $415,729,366 $171,152,921 $216,266,018 $802,426,959 $897,135,849
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-68
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA MODERATE GROWTH AXA MODERATE-PLUS AXA/AB SMALL CAP
STRATEGY* ALLOCATION* GROWTH*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,379,316 $ 1,470,661 $ 6,139,999 $ 5,326,290 $ (745,786) $ (394,694)
Net realized gain (loss)............... 4,006,915 3,074,565 30,841,740 24,484,759 40,108,872 22,599,062
Net change in unrealized appreciation
(depreciation) of investments........ (11,167,077) 7,055,940 (65,552,287) 30,250,450 (55,823,981) 18,348,882
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (5,780,846) 11,601,166 (28,570,548) 60,061,499 (16,460,895) 40,553,250
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 15,292,605 16,955,106 28,814,143 30,922,625 7,770,341 7,554,131
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,508,652) (5,235,210) (23,487,019) (13,791,870) (3,547,190) (11,355,574)
Redemptions for contract benefits and
terminations......................... (2,887,590) (2,442,421) (23,056,449) (20,035,880) (8,433,628) (9,198,838)
Contract maintenance charges........... (7,989,391) (7,871,256) (19,014,366) (20,671,747) (6,816,779) (6,819,518)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,906,972 1,406,219 (36,743,691) (23,576,872) (11,027,256) (19,819,799)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,873,874) 13,007,385 (65,314,239) 36,484,627 (27,488,151) 20,733,451
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 109,617,357 96,609,972 457,491,988 421,007,361 213,951,192 193,217,741
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $106,743,483 $109,617,357 $392,177,749 $457,491,988 $186,463,041 $213,951,192
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-69
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA/CLEARBRIDGE LARGE AXA/LOOMIS SAYLES
CAP GROWTH* AXA/JANUS ENTERPRISE* GROWTH*
------------------------ ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (76,784) $ (142,588) $ (116,749) $ (103,805) $ (69,286) $ (28,722)
Net realized gain (loss)............... 7,873,476 9,128,760 3,984,113 4,984,733 6,439,152 1,373,698
Net change in unrealized appreciation
(depreciation) of investments........ (7,907,125) 7,953,886 (4,449,201) 5,224,000 (7,721,058) 8,459,226
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (110,433) 16,940,058 (581,837) 10,104,928 (1,351,192) 9,804,202
----------- ----------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,042,384 4,838,423 2,775,034 2,965,131 2,659,075 2,117,673
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (4,126,669) (8,298,014) (2,905,338) (1,612,821) 1,357,524 758,988
Redemptions for contract benefits and
terminations......................... (2,242,373) (2,792,529) (2,088,937) (1,517,523) (1,491,722) (854,075)
Contract maintenance charges........... (2,334,528) (2,396,070) (1,676,654) (1,712,287) (1,291,330) (1,067,048)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,661,186) (8,648,190) (3,895,895) (1,877,500) 1,233,547 955,538
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,771,619) 8,291,868 (4,477,732) 8,227,428 (117,645) 10,759,740
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 81,456,070 73,164,202 46,091,787 37,864,359 39,744,004 28,984,264
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $76,684,451 $81,456,070 $41,614,055 $46,091,787 $39,626,359 $39,744,004
=========== =========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-70
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
BLACKROCK GLOBAL CHARTER/SM/ MULTI- CHARTER/SM/ SMALL
ALLOCATION V.I. FUND SECTOR BOND* CAP GROWTH*
---------------------- ------------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 53,846 $ 54,567 $ 1,249,149 $ 856,131 $ 507,656 $ 298,879
Net realized gain (loss)............... 311,616 72,722 (1,327,086) (1,408,166) 2,263,954 781,569
Net change in unrealized appreciation
(depreciation) of investments........ (804,269) 397,048 (634,315) 1,923,410 (3,652,786) 1,438,055
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (438,807) 524,337 (712,252) 1,371,375 (881,176) 2,518,503
---------- ---------- ----------- ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 481,232 666,077 4,892,769 5,422,140 745,190 726,971
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,403,376 (983,013) (1,130,588) (7,559,971) 582,556 372,115
Redemptions for contract benefits and
terminations......................... (184,411) (299,739) (3,587,873) (3,686,081) (472,432) (773,700)
Contract maintenance charges........... (95,630) (84,536) (4,978,093) (5,304,390) (516,851) (495,505)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,604,567 (701,211) (4,803,785) (11,128,302) 338,463 (170,119)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 2,264 -- --
---------- ---------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,165,760 (176,874) (5,516,037) (9,754,663) (542,713) 2,348,384
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,270,952 4,447,826 73,525,448 83,280,111 13,056,619 10,708,235
---------- ---------- ----------- ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $5,436,712 $4,270,952 $68,009,411 $ 73,525,448 $12,513,906 $13,056,619
========== ========== =========== ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-71
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/AMERICAN
CHARTER/SM/ SMALL CAP CLEARBRIDGE VARIABLE CENTURY MID CAP
VALUE* MID CAP PORTFOLIO VALUE*(C )(D)
------------------------ ------------------ ---------------
2018 2017 2018 2017 2018
----------- ----------- -------- -------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 278,998 $ 362,282 $ 1,261 $ 428 $ 267,466
Net realized gain (loss)............... 2,270,249 1,520,462 7,419 13,485 (60,301)
Net change in unrealized appreciation
(depreciation) of investments........ (6,029,386) 1,285,931 (95,687) (2,667) (5,859,557)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,480,139) 3,168,675 (87,007) 11,246 (5,652,392)
----------- ----------- -------- -------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,498,465 1,641,842 364,928 172,104 1,053,158
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,819,898) (1,085,607) 55,149 133,523 53,146,253
Redemptions for contract benefits and
terminations......................... (1,354,284) (1,373,728) -- -- (141,713)
Contract maintenance charges........... (1,381,571) (1,438,532) (30,114) (7,634) (293,100)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,057,288) (2,256,025) 389,963 297,993 53,764,598
----------- ----------- -------- -------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 533 -- --
----------- ----------- -------- -------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,537,427) 912,650 303,489 309,239 48,112,206
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 31,000,265 30,087,615 314,328 5,089 --
----------- ----------- -------- -------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $24,462,838 $31,000,265 $617,817 $314,328 $48,112,206
=========== =========== ======== ======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(d)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap Value
Fund due to a substitution on October 22, 2018.
FSA-72
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/BLACKROCK BASIC EQ/CAPITAL GUARDIAN
VALUE EQUITY* RESEARCH* EQ/COMMON STOCK INDEX*
-------------------------- -------------------------- ------------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 2,647,648 $ 2,192,247 $ 109,556 $ 358,262 $ 13,077,922 $ 12,641,999
Net realized gain (loss)............... 26,378,921 9,091,685 20,054,850 12,725,252 158,391,304 64,211,978
Net change in unrealized appreciation
(depreciation) of investments........ (45,322,323) 4,122,849 (26,127,363) 12,658,249 (267,534,071) 218,283,989
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from operations............ (16,295,754) 15,406,781 (5,962,957) 25,741,763 (96,064,845) 295,137,966
------------ ------------ ------------ ------------ -------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 12,943,153 13,455,602 4,221,681 4,622,061 68,264,259 70,697,299
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (10,529,958) (10,911,779) (3,197,203) (1,570,219) (69,133,046) (51,553,674)
Redemptions for contract benefits and
terminations......................... (7,545,269) (8,952,305) (4,034,801) (5,124,897) (67,662,814) (69,911,005)
Contract maintenance charges........... (7,884,412) (8,332,179) (4,214,631) (4,304,592) (74,802,593) (78,128,183)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (13,016,486) (14,740,661) (7,224,954) (6,377,647) (143,334,194) (128,895,563)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 125,100 22,027
------------ ------------ ------------ ------------ -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS... (29,312,240) 666,120 (13,187,911) 19,364,116 (239,273,939) 166,264,430
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 212,634,157 211,968,037 125,446,171 106,082,055 1,724,896,214 1,558,631,784
------------ ------------ ------------ ------------ -------------- --------------
NET ASSETS -- END OF YEAR OR PERIOD..... $183,321,917 $212,634,157 $112,258,260 $125,446,171 $1,485,622,275 $1,724,896,214
============ ============ ============ ============ ============== ==============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-73
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FIDELITY
INSTITUTIONAL AM/SM/
EQ/CORE BOND INDEX* EQ/EQUITY 500 INDEX* LARGE CAP*(C)(E)
------------------------ --------------------------- -------------------
2018 2017 2018 2017 2018
----------- ----------- ------------- ------------ -------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 808,055 $ 652,831 $ 9,963,773 $ 9,069,228 $ 169,863
Net realized gain (loss)............... (233,740) (105,358) 63,441,265 49,687,094 (179,846)
Net change in unrealized appreciation
(depreciation) of investments........ (607,788) 185,629 (117,357,501) 94,757,414 (12,029,625)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (33,473) 733,102 (43,952,463) 153,513,736 (12,039,608)
----------- ----------- ------------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,663,771 4,503,364 43,792,516 48,204,371 1,186,694
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (426,574) 360,121 (16,216,520) (20,196,036) 105,252,102
Redemptions for contract benefits and
terminations......................... (3,053,763) (2,464,337) (27,225,302) (36,962,210) (321,496)
Contract maintenance charges........... (2,329,332) (4,247,393) (29,645,392) (29,844,695) (349,357)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,145,898) (1,848,245) (29,294,698) (38,798,570) 105,767,943
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 11 491 --
----------- ----------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,179,371) (1,115,143) (73,247,150) 114,715,657 93,728,335
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 51,768,753 52,883,896 875,865,963 761,150,306 --
----------- ----------- ------------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $49,589,382 $51,768,753 $ 802,618,813 $875,865,963 $ 93,728,335
=========== =========== ============= ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(e)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
FSA-74
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FRANKLIN RISING EQ/FRANKLIN
DIVIDENDS*(C)(F) STRATEGIC INCOME*(C)(G) EQ/GLOBAL BOND PLUS*
------------------ ----------------------- ------------------------
2018 2018 2018 2017
------------------ ----------------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................... $ 130,327 $ 223,383 $ 183,287 $ (38,198)
Net realized gain (loss)....................... (17,469) (7,027) (250,669) (373,414)
Net change in unrealized appreciation
(depreciation) of investments................ (4,195,962) (654,159) (260,264) 1,147,392
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.................... (4,083,104) (437,803) (327,646) 735,780
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.......... 812,067 646,523 1,231,412 1,309,930
Transfers between Variable Investment Options
including guaranteed interest account, net... 56,189,605 33,520,994 355,189 182,494
Redemptions for contract benefits and
terminations................................. (399,664) (106,474) (877,497) (1,291,439)
Contract maintenance charges................... (411,020) (310,472) (828,842) (910,448)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners transactions... 56,190,988 33,750,571 (119,738) (709,463)
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP......... 1,361 185,604 -- --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS........... 52,109,245 33,498,372 (447,384) 26,317
NET ASSETS -- BEGINNING OF YEAR OR PERIOD....... -- -- 17,085,302 17,058,985
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............. $52,109,245 $33,498,372 $16,637,918 $17,085,302
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(f)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund due
to a substitution on October 22, 2018.
(g)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund due
to a substitution on October 22, 2018.
FSA-75
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/GOLDMAN SACHS MID EQ/INTERMEDIATE EQ/INTERNATIONAL
CAP VALUE*(C)(H) GOVERNMENT BOND* EQUITY INDEX*
-------------------- ------------------------- --------------------------
2018 2018 2017 2018 2017
-------------------- ------------ ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................ $ 16,781 $ 418,146 $ 539,142 $ 6,228,990 $ 6,903,116
Net realized gain (loss).................... (9,315) (586,240) 278,982 (3,015,502) (5,487,166)
Net change in unrealized appreciation
(depreciation) of investments............. (849,455) 262,219 (714,718) (53,733,576) 62,115,735
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations................. (841,989) 94,125 103,406 (50,520,088) 63,531,685
---------- ------------ ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners....... 134,893 4,221,238 4,539,850 19,479,370 25,286,472
Transfers between Variable Investment
Options including guaranteed interest
account, net.............................. 9,284,016 (38,572,276) 3,310,355 (2,665,872) 6,872,058
Redemptions for contract benefits and
terminations.............................. (12,619) (2,537,688) (5,884,857) (12,255,673) (16,662,776)
Contract maintenance charges................ (68,241) (3,969,469) (4,309,219) (16,133,725) (17,153,586)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners transactions 9,338,049 (40,858,195) (2,343,871) (11,575,900) (1,657,832)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in amount retained
by AXA Equitable in Separate Account FP... -- -- 250 -- --
---------- ------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS........ 8,496,060 (40,764,070) (2,240,215) (62,095,988) 61,873,853
NET ASSETS -- BEGINNING OF YEAR OR PERIOD.... -- 88,991,778 91,231,993 334,523,584 272,649,731
---------- ------------ ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD.......... $8,496,060 $ 48,227,708 $88,991,778 $272,427,596 $334,523,584
========== ============ =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(h)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value Fund
due to a substitution on October 22, 2018.
FSA-76
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/INVESCO
EQ/INVESCO GLOBAL INTERNATIONAL
EQ/INVESCO COMSTOCK* REAL ESTATE*(C)(I) GROWTH*(C)(J)
------------------------ ------------------ -------------
2018 2017 2018 2018
----------- ----------- ------------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 400,276 $ 163,404 $ 193,692 $ 59,096
Net realized gain (loss)............... 2,007,452 698,834 15,837 (34,887)
Net change in unrealized appreciation
(depreciation) of investments........ (6,065,466) 3,616,119 (688,317) (1,744,827)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,657,738) 4,478,357 (478,788) (1,720,618)
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,437,416 1,730,186 884,036 962,453
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (142,921) 1,456,913 36,321,954 33,174,169
Redemptions for contract benefits and
terminations......................... (919,146) (779,354) (133,379) (123,391)
Contract maintenance charges........... (830,185) (849,883) (244,570) (177,322)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (454,836) 1,557,862 36,828,041 33,835,909
----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 16,845 --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,112,574) 6,036,219 36,366,098 32,115,291
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 29,713,101 23,676,882 -- --
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $25,600,527 $29,713,101 $36,366,098 $32,115,291
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(i)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate Fund
due to a substitution on October 22, 2018.
(j)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
FSA-77
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/IVY MID CAP EQ/IVY SCIENCE AND
EQ/IVY ENERGY*(C)(K) GROWTH*(C)(L) TECHNOLOGY*(C)(M)
-------------------- -------------- ------------------
2018 2018 2018
-------------------- -------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,552 $ (12,356) $ (12,806)
Net realized gain (loss)............... (64,522) (31,541) (173,400)
Net change in unrealized appreciation
(depreciation) of investments........ (4,497,704) (3,192,880) (3,885,520)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (4,554,674) (3,236,777) (4,071,726)
----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 448,845 498,738 655,938
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 14,502,337 36,235,095 36,407,134
Redemptions for contract benefits and
terminations......................... (52,038) (76,589) (123,859)
Contract maintenance charges........... (118,118) (215,738) (216,456)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 14,781,026 36,441,506 36,722,757
----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 12,750 -- 1,726
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 10,239,102 33,204,729 32,652,757
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- -- --
----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,239,102 $33,204,729 $32,652,757
=========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(k)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(l)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a substitution
on October 22, 2018.
(m)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due to
a substitution on October 22, 2018.
FSA-78
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/JPMORGAN VALUE EQ/LARGE CAP GROWTH EQ/LARGE CAP VALUE
OPPORTUNITIES* INDEX* INDEX*
------------------------- -------------------------- ------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 332,904 $ 209,523 $ 353,614 $ 503,425 $ 483,061 $ 433,024
Net realized gain (loss)............... 6,128,712 7,316,889 17,410,612 11,820,464 2,245,139 1,673,221
Net change in unrealized appreciation
(depreciation) of investments........ (14,604,905) (459,157) (21,527,934) 24,348,871 (5,163,413) 1,055,188
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (8,143,289) 7,067,255 (3,763,708) 36,672,760 (2,435,213) 3,161,433
------------ ----------- ------------ ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,458,081 2,518,595 6,983,652 6,754,755 1,969,105 2,030,222
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,960,234 6,143,448 (4,406,404) (1,668,287) (1,650,942) 134,283
Redemptions for contract benefits and
terminations......................... (2,318,012) (1,589,909) (5,802,642) (6,160,623) (1,359,157) (362,682)
Contract maintenance charges........... (1,759,848) (1,702,468) (5,329,214) (5,350,864) (813,035) (819,592)
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,340,455 5,369,666 (8,554,608) (6,425,019) (1,854,029) 982,231
------------ ----------- ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,802,834) 12,436,921 (12,318,316) 30,247,741 (4,289,242) 4,143,664
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 50,352,837 37,915,916 160,601,176 130,353,435 28,988,210 24,844,546
------------ ----------- ------------ ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 43,550,003 $50,352,837 $148,282,860 $160,601,176 $24,698,968 $28,988,210
============ =========== ============ ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-79
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/LAZARD EMERGING EQ/MFS INTERNATIONAL EQ/MFS INTERNATIONAL
MARKETS EQUITY*(C)(N) GROWTH* VALUE*(C)(O)
--------------------- ------------------------- --------------------
2018 2018 2017 2018
--------------------- ------------ ----------- --------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 76,969 $ 342,241 $ 273,243 $ (43,338)
Net realized gain (loss)............... (5,780) 6,156,089 3,002,534 (57,675)
Net change in unrealized appreciation
(depreciation) of investments........ (713,799) (11,400,219) 8,871,531 (4,576,888)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations............ (642,610) (4,901,889) 12,147,308 (4,677,901)
----------- ------------ ----------- ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,548,670 2,777,786 2,747,437 2,359,133
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 52,324,409 536,107 894,865 106,053,233
Redemptions for contract benefits and
terminations......................... (249,493) (1,531,690) (1,871,149) (268,686)
Contract maintenance charges........... (366,650) (1,375,760) (1,372,826) (622,499)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 53,256,936 406,443 398,327 107,521,181
----------- ------------ ----------- ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 414
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS... 52,614,326 (4,495,446) 12,545,635 102,843,694
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 51,192,265 38,646,630 --
----------- ------------ ----------- ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $52,614,326 $ 46,696,819 $51,192,265 $102,843,694
=========== ============ =========== ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(n)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(o)EQ/MFS International Value replaced MFS(R) International Value Portfolio due
to a substitution on October 22, 2018.
FSA-80
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/MFS UTILITIES
SERIES*(C)(P) EQ/MID CAP INDEX* EQ/MONEY MARKET*
---------------- -------------------------- --------------------------
2018 2018 2017 2018 2017
---------------- ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,447 $ 1,240,608 $ 942,438 $ 1,293,199 $ 1,894
Net realized gain (loss)............... (5,831) 18,481,450 20,804,385 3,973 4,114
Net change in unrealized appreciation
(depreciation) of investments........ (89,090) (37,940,546) (921,700) 3,115 632
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (82,474) (18,218,488) 20,825,123 1,300,287 6,640
---------- ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 38,278 9,151,686 13,989,156 83,705,875 74,309,383
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,346,830 (2,332,744) 12,310,822 1,575,257 19,368,117
Redemptions for contract benefits and
terminations......................... (1,642) (6,597,824) (11,824,318) (80,746,543) (81,637,216)
Contract maintenance charges........... (9,088) (4,908,979) (5,138,809) (15,954,459) (16,395,546)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,374,378 (4,687,861) 9,336,851 (11,419,870) (4,355,262)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- (21) 14,970
---------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 2,291,904 (22,906,349) 30,161,974 (10,119,604) (4,333,652)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 157,132,248 126,970,274 154,480,348 158,814,000
---------- ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,291,904 $134,225,899 $157,132,248 $144,360,744 $154,480,348
========== ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(p)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
FSA-81
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/PIMCO EQ/PIMCO
REAL TOTAL EQ/PIMCO ULTRA SHORT
RETURN*(C)(Q) RETURN*(C)(R) BOND*
------------- ------------- ------------------------
2018 2018 2018 2017
------------- ------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)..................... $ 102,385 $ 422,613 $ 575,866 $ 338,391
Net realized gain (loss)......................... 34,899 238,724 13,680 (4,530)
Net change in unrealized appreciation
(depreciation) of investments.................. (78,883) 410,518 (362,655) 180,974
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................ 58,401 1,071,855 226,891 514,835
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners............ 606,640 1,101,234 2,203,800 2,522,340
Transfers between Variable Investment Options
including guaranteed interest account, net..... 23,933,897 66,846,907 993,308 2,824,882
Redemptions for contract benefits and
terminations................................... (177,212) (268,391) (1,501,122) (1,697,778)
Contract maintenance charges..................... (237,130) (523,468) (1,808,236) (1,899,702)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from contractowners transactions............... 24,126,195 67,156,282 (112,250) 1,749,742
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP........... -- -- -- 313
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. 24,184,596 68,228,137 114,641 2,264,890
NET ASSETS -- BEGINNING OF YEAR OR PERIOD......... -- -- 33,270,859 31,005,969
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............... $24,184,596 $68,228,137 $33,385,500 $33,270,859
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(q)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(r)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
FSA-82
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/SMALL COMPANY EQ/T. ROWE PRICE GROWTH
EQ/QUALITY BOND PLUS* INDEX* STOCK*
------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 540,728 $ 355,221 $ 781,682 $ 799,920 $ (356,872) $ (287,380)
Net realized gain (loss)............... (305,373) (558,474) 11,320,740 9,632,868 18,354,311 14,524,649
Net change in unrealized appreciation
(depreciation) of investments........ (415,538) 701,106 (23,894,445) 1,718,087 (20,766,318) 12,054,306
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (180,183) 497,853 (11,792,023) 12,150,875 (2,768,879) 26,291,575
----------- ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,403,693 3,652,491 6,612,780 5,839,635 11,671,252 10,565,164
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,262,682) (8,845,640) (1,077,493) 2,911,718 747,416 3,728,883
Redemptions for contract benefits and
terminations......................... (2,423,040) (3,303,132) (3,062,507) (2,656,416) (3,447,977) (3,623,193)
Contract maintenance charges........... (3,186,540) (3,499,449) (2,794,233) (2,710,413) (3,747,718) (3,312,427)
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,468,569) (11,995,730) (321,453) 3,384,524 5,222,973 7,358,427
----------- ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,648,752) (11,497,877) (12,113,476) 15,535,399 2,454,094 33,650,002
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 45,400,051 56,897,928 101,479,813 85,944,414 112,079,477 78,429,475
----------- ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $41,751,299 $ 45,400,051 $ 89,366,337 $101,479,813 $114,533,571 $112,079,477
=========== ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-83
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP ASSET
EQ/T. ROWE PRICE HEALTH EQ/UBS GROWTH & MANAGER: GROWTH
SCIENCES*(C)(S) INCOME* PORTFOLIO
----------------------- ------------------------ ----------------------
2018 2018 2017 2018 2017
----------------------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ -- $ (909) $ (7,260) $ 15,177 $ 15,860
Net realized gain (loss)............... (29,755) 2,309,130 1,268,760 126,984 210,934
Net change in unrealized appreciation
(depreciation) of investments........ (823,342) (4,100,675) 1,320,196 (225,936) 26,312
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (853,097) (1,792,454) 2,581,696 (83,775) 253,106
---------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 318,959 642,673 773,313 127,084 85,550
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 8,400,775 (2,719,307) 2,833,189 (27,165) (77,648)
Redemptions for contract benefits and
terminations......................... (411) (442,469) (1,031,297) (417,412) (17,598)
Contract maintenance charges........... (22,107) (436,187) (444,918) (44,623) (36,019)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 8,697,216 (2,955,290) 2,130,287 (362,116) (45,715)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 9,007 -- -- -- --
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 7,853,126 (4,747,744) 4,711,983 (445,891) 207,391
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 16,096,068 11,384,085 1,591,314 1,383,923
---------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $7,853,126 $11,348,324 $16,096,068 $1,145,423 $1,591,314
========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(s)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
FSA-84
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP EQUITY- GOVERNMENT MONEY FIDELITY(R)/ /VIP GROWTH &
INCOME PORTFOLIO MARKET PORTFOLIO INCOME PORTFOLIO
------------------------ ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 36,513 $ 26,477 $ 19,493 $ 6,057 $ 1,162 $ 81,796
Net realized gain (loss)............... 103,960 33,787 -- -- 819,984 459,015
Net change in unrealized appreciation
(depreciation) of investments........ (283,361) 149,822 -- -- (1,691,998) 950,418
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (142,888) 210,086 19,493 6,057 (870,852) 1,491,229
---------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 364,082 326,990 172,255 192,674 962,740 1,222,128
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (280,400) (183,123) 269,993 (380,897) (549,721) (333,493)
Redemptions for contract benefits and
terminations......................... (87,410) (80,517) (37,768) (149) (504,023) (392,065)
Contract maintenance charges........... (47,022) (53,931) (45,968) (60,587) (414,538) (423,940)
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (50,750) 9,419 358,512 (248,959) (505,542) 72,630
---------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (193,638) 219,505 378,005 (242,902) (1,376,394) 1,563,859
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 1,804,413 1,584,908 1,089,358 1,332,260 10,173,654 8,609,795
---------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,610,775 $1,804,413 $1,467,363 $1,089,358 $ 8,797,260 $10,173,654
========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-85
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP HIGH FIDELITY(R)/ /VIP INVESTMENT FIDELITY(R)/ /VIP MID CAP
INCOME PORTFOLIO GRADE BOND PORTFOLIO PORTFOLIO
----------------------- --------------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 159,061 $ 193,518 $ 854,287 $ 370,838 $ 79,931 $ 90,039
Net realized gain (loss)............... (41,662) (41,290) (8,228) 213,753 3,220,805 1,330,964
Net change in unrealized appreciation
(depreciation) of investments........ (210,317) 96,590 (1,053,399) 209,639 (8,193,396) 3,659,520
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (92,918) 248,818 (207,340) 794,230 (4,892,660) 5,080,523
----------- ---------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 316,106 390,955 3,036,390 8,448,106 5,164,695 4,221,684
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,337,468) (7,655) 19,785,678 5,079,323 (1,586,532) 105,288
Redemptions for contract benefits and
terminations......................... (251,778) (127,467) (1,593,205) (6,260,023) (938,814) (917,962)
Contract maintenance charges........... (67,257) (59,927) (571,148) (900,438) (962,168) (867,228)
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (1,340,397) 195,906 20,657,715 6,366,968 1,677,181 2,541,782
----------- ---------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,433,315) 444,724 20,450,375 7,161,198 (3,215,479) 7,622,305
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,070,804 3,626,080 16,363,098 9,201,900 31,644,995 24,022,690
----------- ---------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 2,637,489 $4,070,804 $36,813,473 $16,363,098 $28,429,516 $31,644,995
=========== ========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-86
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP VALUE FIDELITY(R)/ /VIP VALUE FRANKLIN MUTUAL
PORTFOLIO STRATEGIES PORTFOLIO SHARES VIP FUND
--------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- --------- --------- -------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,276 $ 8,342 $ 2,948 $ 5,354 $ 204,329 $ 225,656
Net realized gain (loss)............... 70,488 44,941 32,269 85,781 398,148 634,235
Net change in unrealized appreciation
(depreciation) of investments........ (287,144) 59,005 (93,356) (21,373) (1,447,043) (6,575)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (204,380) 112,288 (58,139) 69,762 (844,566) 853,316
---------- --------- --------- -------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 219,536 105,910 131,489 36,231 702,605 637,676
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 516,778 (119,852) 10,249 102,267 (2,008,212) (643,853)
Redemptions for contract benefits and
terminations......................... (12,735) -- (315,371) (8,175) (327,816) (205,841)
Contract maintenance charges........... (25,979) (20,317) (9,672) (5,410) (251,824) (255,182)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 697,600 (34,259) (183,305) 124,913 (1,885,247) (467,200)
---------- --------- --------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 493,220 78,029 (241,444) 194,675 (2,729,813) 386,116
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 826,046 748,017 529,098 334,423 10,881,114 10,494,998
---------- --------- --------- -------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,319,266 $ 826,046 $ 287,654 $529,098 $ 8,151,301 $10,881,114
========== ========= ========= ======== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-87
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FRANKLIN SMALL CAP INVESCO V.I. DIVERSIFIED INVESCO V.I. MID CAP
VALUE VIP FUND DIVIDEND FUND CORE EQUITY FUND
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 84,313 $ 30,630 $ 329,880 $ 209,275 $ (4,093) $ 2,165
Net realized gain (loss)............... 1,866,944 675,237 607,046 893,099 560,008 36,137
Net change in unrealized appreciation
(depreciation) of investments........ (3,604,606) 424,449 (2,082,480) 15,062 (1,054,884) 430,480
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,653,349) 1,130,316 (1,145,554) 1,117,436 (498,969) 468,782
----------- ----------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,225,400 1,308,322 1,739,605 1,821,907 276,037 216,944
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 12,504 (768,691) (748,388) (1,199,630) 131,366 (82,942)
Redemptions for contract benefits and
terminations......................... (398,068) (207,995) (422,613) (127,609) (121,676) (87,848)
Contract maintenance charges........... (340,702) (319,086) (364,873) (358,741) (97,720) (92,575)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 499,134 12,550 203,731 135,927 188,007 (46,421)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- (6) --
----------- ----------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,154,215) 1,142,866 (941,823) 1,253,363 (310,968) 422,361
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,259,398 11,116,532 14,464,649 13,211,286 3,804,123 3,381,762
----------- ----------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $11,105,183 $12,259,398 $13,522,826 $14,464,649 $ 3,493,155 $3,804,123
=========== =========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-88
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
INVESCO V.I. SMALL CAP IVY VIP GLOBAL
EQUITY FUND EQUITY INCOME IVY VIP HIGH INCOME
----------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (9,777) $ (10,054) $ 15,245 $ 10,139 $ 2,124,227 $ 1,639,044
Net realized gain (loss)............... 336,850 170,891 39,100 36,952 (123,106) (243,257)
Net change in unrealized appreciation
(depreciation) of investments........ (1,213,467) 482,329 (150,013) 85,655 (2,884,856) 520,815
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (886,394) 643,166 (95,668) 132,746 (883,735) 1,916,602
----------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 421,892 395,973 78,374 91,888 4,278,615 3,681,097
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (82,185) 522,870 (453,431) 83,185 1,411,468 659,329
Redemptions for contract benefits and
terminations......................... (88,415) (77,531) (1,186) (4,879) (734,121) (897,197)
Contract maintenance charges........... (190,227) (180,525) (27,713) (26,377) (1,431,584) (1,264,121)
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 61,065 660,787 (403,956) 143,817 3,524,378 2,179,108
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 112 --
----------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (825,329) 1,303,953 (499,624) 276,563 2,640,755 4,095,710
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,917,440 4,613,487 1,025,378 748,815 32,857,092 28,761,382
----------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 5,092,111 $5,917,440 $ 525,754 $1,025,378 $35,497,847 $32,857,092
=========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-89
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MFS(R)/ /MASSACHUSETTS
IVY VIP SMALL CAP MFS(R)/ /INVESTORS TRUST INVESTORS GROWTH
GROWTH SERIES STOCK PORTFOLIO
------------------------ ---------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 18,769 $ (23,455) $ 6,573 $ 9,717 $ 4,170 $ 6,356
Net realized gain (loss)............... 4,706,592 107,204 272,022 161,574 406,570 216,672
Net change in unrealized appreciation
(depreciation) of investments........ (5,322,774) 2,025,126 (453,820) 484,584 (499,761) 790,808
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (597,413) 2,108,875 (175,225) 655,875 (89,021) 1,013,836
----------- ----------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,017,729 1,014,519 255,761 279,046 479,619 580,824
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 264,063 1,364,503 (759,168) 595,850 1,141,121 (319,403)
Redemptions for contract benefits and
terminations......................... (329,710) (433,924) (70,698) (9,822) (124,888) (133,375)
Contract maintenance charges........... (405,362) (339,263) (114,851) (111,975) (160,212) (166,280)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 546,720 1,605,835 (688,956) 753,099 1,335,640 (38,234)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 6 -- -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (50,687) 3,714,710 (864,181) 1,408,974 1,246,619 975,602
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,406,124 8,691,414 4,026,553 2,617,579 4,740,754 3,765,152
----------- ----------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $12,355,437 $12,406,124 $3,162,372 $4,026,553 $5,987,373 $4,740,754
=========== =========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-90
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MULTIMANAGER CORE MULTIMANAGER
AGGRESSIVE EQUITY* BOND* MID CAP GROWTH*
-------------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (1,970,348) $ (1,595,863) $ 1,513,634 $ 1,196,584 $ (83,947) $ (75,591)
Net realized gain (loss)............... 76,518,165 19,467,828 (703,201) (1,016,350) 4,308,250 1,892,769
Net change in unrealized appreciation
(depreciation) of investments........ (75,548,437) 90,566,246 (1,264,909) 1,627,190 (5,865,470) 4,700,332
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (1,000,620) 108,438,211 (454,476) 1,807,424 (1,641,167) 6,517,510
------------ ------------ ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 19,642,304 20,579,052 3,575,406 3,921,284 1,315,240 1,409,088
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (5,816,235) (7,898,955) (1,634,791) (5,037,961) (63,920) (5,305,433)
Redemptions for contract benefits and
terminations......................... (19,970,181) (19,931,528) (2,979,637) (2,335,291) (1,511,855) (1,536,075)
Contract maintenance charges........... (21,076,907) (21,448,107) (3,223,200) (3,426,225) (1,122,920) (1,107,159)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (27,221,019) (28,699,538) (4,262,222) (6,878,193) (1,383,455) (6,539,579)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (28,221,639) 79,738,673 (4,716,698) (5,070,769) (3,024,622) (22,069)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 457,137,617 377,398,944 64,643,113 69,713,882 29,766,783 29,788,852
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $428,915,978 $457,137,617 $59,926,415 $64,643,113 $26,742,161 $29,766,783
============ ============ =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-91
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MID CAP MULTIMANAGER NATURAL RESOURCES
VALUE* TECHNOLOGY* PORTFOLIO
------------------------- -------------------------- -----------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 139,806 $ 147,060 $ (336,916) $ (430,334) $ -- $ --
Net realized gain (loss)............... 4,982,126 5,540,659 30,526,380 16,358,155 (32,443) 314,388
Net change in unrealized appreciation
(depreciation) of investments........ (10,194,593) (2,234,798) (27,829,523) 19,494,100 (553,290) (382,799)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (5,072,661) 3,452,921 2,359,941 35,421,921 (585,733) (68,411)
------------ ----------- ------------ ------------ ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,543,167 1,634,900 6,584,437 6,136,240 199,394 248,271
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,206,402) (7,561,096) 3,511,970 3,719,728 (1,918,382) 208,084
Redemptions for contract benefits and
terminations......................... (1,590,082) (2,125,087) (4,699,617) (4,483,939) (20,941) (2,552)
Contract maintenance charges........... (1,548,757) (1,631,364) (4,343,518) (4,042,608) (35,350) (32,011)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,802,074) (9,682,647) 1,053,272 1,329,421 (1,775,279) 421,792
------------ ----------- ------------ ------------ ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (7,874,735) (6,229,726) 3,413,213 36,751,342 (2,361,012) 353,381
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 41,221,509 47,451,235 127,676,999 90,925,657 4,277,096 3,923,715
------------ ----------- ------------ ------------ ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 33,346,774 $41,221,509 $131,090,212 $127,676,999 $ 1,916,084 $4,277,096
============ =========== ============ ============ =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-92
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
PIMCO
COMMODITYREALRETURN(R)/ T. ROWE PRICE EQUITY
/STRATEGY PORTFOLIO INCOME PORTFOLIO TARGET 2015 ALLOCATION*
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 193,192 $ 1,042,484 $ 213,799 $ 167,523 $ 30,674 $ 24,923
Net realized gain (loss)............... (927,692) (1,020,101) 1,457,729 1,630,941 169,622 73,712
Net change in unrealized appreciation
(depreciation) of investments........ (846,643) 202,280 (3,057,011) 134,619 (272,000) 74,452
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,581,143) 224,663 (1,385,483) 1,933,083 (71,704) 173,087
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,031,513 1,198,968 974,604 961,625 55,080 59,562
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 293,523 259,203 448,100 (22,439) (149,697) 1,382,599
Redemptions for contract benefits and
terminations......................... (383,117) (217,289) (441,558) (1,003,917) -- --
Contract maintenance charges........... (435,001) (441,892) (539,665) (518,978) (16,253) (11,125)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 506,918 798,990 441,481 (583,709) (110,870) 1,431,036
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,074,225) 1,023,653 (944,002) 1,349,374 (182,574) 1,604,123
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 10,612,827 9,589,174 13,994,976 12,645,602 1,892,475 288,352
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,538,602 $10,612,827 $13,050,974 $13,994,976 $1,709,901 $1,892,475
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-93
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TARGET 2025 ALLOCATION* TARGET 2035 ALLOCATION* TARGET 2045 ALLOCATION*
----------------------- ----------------------- -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 140,641 $ 95,880 $ 69,872 $ 40,567 $ 43,750 $ 23,213
Net realized gain (loss)............... 351,991 75,888 190,662 31,591 94,118 34,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,093,575) 602,049 (656,629) 308,373 (386,721) 176,698
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (600,943) 773,817 (396,095) 380,531 (248,853) 234,782
----------- ---------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 516,784 433,499 626,863 272,395 458,201 336,458
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,292,438 4,539,714 1,373,433 1,451,315 973,093 544,878
Redemptions for contract benefits and
terminations......................... (89,525) (94,790) (51,928) (59,515) (17,703) (14,748)
Contract maintenance charges........... (138,422) (98,478) (115,782) (75,081) (111,876) (78,386)
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,581,275 4,779,945 1,832,586 1,589,114 1,301,715 788,202
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 89 -- 9 -- -- --
----------- ---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,980,421 5,553,762 1,436,500 1,969,645 1,052,862 1,022,984
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,645,472 2,091,710 3,313,155 1,343,510 1,777,373 754,389
----------- ---------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,625,893 $7,645,472 $4,749,655 $3,313,155 $2,830,235 $1,777,373
=========== ========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-94
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TEMPLETON DEVELOPING TEMPLETON GLOBAL BOND
TARGET 2055 ALLOCATION* MARKETS VIP FUND VIP FUND
----------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
--------- -------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,463 $ 7,608 $ 92,942 $ 101,719 $ (81,519) $ (82,617)
Net realized gain (loss)............... 42,868 12,353 479,829 4,178 (788,411) (566,721)
Net change in unrealized appreciation
(depreciation) of investments........ (133,277) 70,907 (3,670,319) 4,129,479 1,674,585 1,332,521
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (77,946) 90,868 (3,097,548) 4,235,376 804,655 683,183
--------- -------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 244,304 130,055 1,436,269 1,346,057 4,597,758 4,753,578
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 207,973 224,166 2,390,379 3,240,016 (1,271,718) 2,173,998
Redemptions for contract benefits and
terminations......................... (7,003) (85,020) (409,893) (358,079) (1,347,516) (1,421,384)
Contract maintenance charges........... (36,521) (17,991) (623,534) (582,691) (2,013,413) (2,031,425)
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 408,753 251,210 2,793,221 3,645,303 (34,889) 3,474,767
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 56 63 -- --
--------- -------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 330,807 342,078 (304,271) 7,880,742 769,766 4,157,950
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 606,368 264,290 17,444,222 9,563,480 45,630,839 41,472,889
--------- -------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 937,175 $606,368 $17,139,951 $17,444,222 $46,400,605 $45,630,839
========= ======== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-95
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
VANGUARD VARIABLE
TEMPLETON GROWTH VANECK VIP GLOBAL HARD INSURANCE FUND - EQUITY
VIP FUND ASSETS FUND INDEX PORTFOLIO
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 86,664 $ 66,788 $ (21,206) $ (25,308) $ 108,008 $ 93,100
Net realized gain (loss)............... 419,961 (35,835) (328,197) (542,822) 838,203 790,061
Net change in unrealized appreciation
(depreciation) of investments........ (1,279,590) 790,464 (3,047,878) 284,049 (1,940,874) 625,587
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (772,965) 821,417 (3,397,281) (284,081) (994,663) 1,508,748
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 357,713 357,549 1,237,119 1,460,432 384,111 345,043
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (71,008) (97,295) (984,234) (751,613) 6,322,884 132,959
Redemptions for contract benefits and
terminations......................... (146,719) (166,930) (335,854) (401,384) (1,385,646) (205,024)
Contract maintenance charges........... (225,890) (229,794) (506,349) (581,986) (210,430) (123,888)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (85,904) (136,470) (589,318) (274,551) 5,110,919 149,090
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (858,869) 684,947 (3,986,599) (558,632) 4,116,256 1,657,838
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,261,741 4,576,794 12,427,969 12,986,601 8,911,906 7,254,068
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 4,402,872 $5,261,741 $ 8,441,370 $12,427,969 $13,028,162 $8,911,906
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-96
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
The change in units outstanding for the years or periods ended December 31,
2018 and 2017 were as follows:
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
1290 VT CONVERTIBLE SECURITIES.................... B 18 (3) 15 7 (1) 6
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. B 35 (114) (79) 78 (10) 68
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. B 14 (4) 10 3 -- 3
1290 VT EQUITY INCOME............................. A 1 (5) (4) 4 (3) 1
1290 VT EQUITY INCOME............................. B 6 (7) (1) 6 (8) (2)
1290 VT GAMCO MERGERS & ACQUISITIONS.............. A 11 (26) (15) 31 (5) 26
1290 VT GAMCO MERGERS & ACQUISITIONS.............. B 13 (15) (2) 14 (13) 1
1290 VT GAMCO SMALL COMPANY VALUE................. A 172 (103) 69 121 (102) 19
1290 VT GAMCO SMALL COMPANY VALUE................. B 34 (55) (21) 44 (54) (10)
1290 VT SMARTBETA EQUITY.......................... B 47 (5) 42 10 (2) 8
1290 VT SOCIALLY RESPONSIBLE...................... A -- -- -- 1 (1) --
1290 VT SOCIALLY RESPONSIBLE...................... B 4 (8) (4) 7 (5) 2
ALL ASSET GROWTH-ALT 20........................... B 73 (54) 19 125 (32) 93
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... CLASS 4 59 (13) 46 35 (13) 22
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... CLASS 4 223 (41) 182 82 (32) 50
AXA 400 MANAGED VOLATILITY........................ B 3 (5) (2) 8 (6) 2
AXA 500 MANAGED VOLATILITY........................ B 13 (7) 6 12 (6) 6
AXA 2000 MANAGED VOLATILITY....................... B 5 (4) 1 9 (4) 5
AXA AGGRESSIVE ALLOCATION......................... A 51 (43) 8 44 (48) (4)
AXA AGGRESSIVE ALLOCATION......................... B 20 (42) (22) 22 (33) (11)
AXA BALANCED STRATEGY............................. B 37 (16) 21 47 (10) 37
AXA CONSERVATIVE ALLOCATION....................... A 33 (30) 3 31 (48) (17)
AXA CONSERVATIVE ALLOCATION....................... B 11 (10) 1 7 (19) (12)
AXA CONSERVATIVE GROWTH STRATEGY.................. B 4 (5) (1) 10 (5) 5
|
The accompanying notes are an integral part of these financial statements.
FSA-97
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA CONSERVATIVE STRATEGY......................... B 8 (5) 3 3 (5) (2)
AXA CONSERVATIVE-PLUS ALLOCATION.................. A 72 (37) 35 60 (34) 26
AXA CONSERVATIVE-PLUS ALLOCATION.................. B 7 (12) (5) 10 (15) (5)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. A 18 (8) 10 6 (7) (1)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. B 9 (39) (30) 9 (48) (39)
AXA GROWTH STRATEGY............................... B 27 (25) 2 35 (9) 26
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... A 2 (5) (3) 2 (7) (5)
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... B 14 (25) (11) 11 (65) (54)
AXA INTERNATIONAL MANAGED VOLATILITY.............. B 7 (3) 4 7 (3) 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ A 17 (20) (3) 11 (11) --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ B 17 (40) (23) 17 (46) (29)
AXA LARGE CAP CORE MANAGED VOLATILITY............. A 5 (2) 3 4 (2) 2
AXA LARGE CAP CORE MANAGED VOLATILITY............. B 4 (10) (6) 5 (13) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... A 7 (14) (7) 8 (16) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... B 10 (59) (49) 10 (62) (52)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ A 16 (98) (82) 25 (111) (86)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ B 8 (50) (42) 10 (48) (38)
AXA MID CAP VALUE MANAGED VOLATILITY.............. A 10 (63) (53) 14 (62) (48)
AXA MID CAP VALUE MANAGED VOLATILITY.............. B 2 (3) (1) 2 (4) (2)
AXA MODERATE ALLOCATION........................... A 147 (145) 2 124 (147) (23)
AXA MODERATE ALLOCATION........................... B 98 (79) 19 31 (78) (47)
AXA MODERATE GROWTH STRATEGY...................... B 45 (28) 17 52 (43) 9
AXA MODERATE-PLUS ALLOCATION...................... A 198 (184) 14 160 (157) 3
AXA MODERATE-PLUS ALLOCATION...................... B 60 (134) (74) 47 (87) (40)
AXA/AB SMALL CAP GROWTH........................... A 73 (37) 36 33 (52) (19)
AXA/AB SMALL CAP GROWTH........................... B 7 (14) (7) 4 (19) (15)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. A 11 (14) (3) 21 (42) (21)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. B 22 (35) (13) 22 (56) (34)
|
The accompanying notes are an integral part of these financial statements.
FSA-98
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA/JANUS ENTERPRISE.............................. A 4 (17) (13) 11 (15) (4)
AXA/JANUS ENTERPRISE.............................. B 27 (22) 5 15 (18) (3)
AXA/LOOMIS SAYLES GROWTH.......................... A 47 (21) 26 30 (21) 9
AXA/LOOMIS SAYLES GROWTH.......................... B 18 (15) 3 13 (13) --
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. CLASS III 173 (64) 109 67 (45) 22
CHARTER/SM/ MULTI-SECTOR BOND..................... A 16 (24) (8) 17 (49) (32)
CHARTER/SM/ MULTI-SECTOR BOND..................... B 15 (23) (8) 12 (18) (6)
CHARTER/SM/ SMALL CAP GROWTH...................... B 15 (15) -- 9 (10) (1)
CHARTER/SM/ SMALL CAP VALUE....................... A 1 (7) (6) 1 (4) (3)
CHARTER/SM/ SMALL CAP VALUE....................... B 4 (7) (3) 5 (9) (4)
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ CLASS II 44 (13) 31 27 (2) 25
EQ/AMERICAN CENTURY MID CAP VALUE................. B 453 (10) 443 -- -- --
EQ/BLACKROCK BASIC VALUE EQUITY................... A 110 (113) (3) 90 (89) 1
EQ/BLACKROCK BASIC VALUE EQUITY................... B 16 (38) (22) 17 (48) (31)
EQ/CAPITAL GUARDIAN RESEARCH...................... A 19 (11) 8 12 (10) 2
EQ/CAPITAL GUARDIAN RESEARCH...................... B 8 (29) (21) 22 (41) (19)
EQ/COMMON STOCK INDEX............................. A 185 (283) (98) 257 (321) (64)
EQ/COMMON STOCK INDEX............................. B 47 (72) (25) 41 (71) (30)
EQ/CORE BOND INDEX................................ A 21 (27) (6) 191 (209) (18)
EQ/CORE BOND INDEX................................ B 20 (30) (10) 25 (18) 7
EQ/EQUITY 500 INDEX............................... A 310 (233) 77 335 (234) 101
EQ/EQUITY 500 INDEX............................... B 122 (101) 21 134 (97) 37
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP........ B 608 (19) 589 -- -- --
EQ/FRANKLIN RISING DIVIDENDS...................... B 243 (14) 229 -- -- --
EQ/FRANKLIN STRATEGIC INCOME...................... B 257 (7) 250 -- -- --
EQ/GLOBAL BOND PLUS............................... A 25 (20) 5 23 (23) --
EQ/GLOBAL BOND PLUS............................... B 10 (9) 1 10 (11) (1)
EQ/GOLDMAN SACHS MID CAP VALUE.................... B 50 (2) 48 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
EQ/INTERMEDIATE GOVERNMENT BOND................... A 61 (224) (163) 93 (77) 16
EQ/INTERMEDIATE GOVERNMENT BOND................... B 10 (14) (4) 9 (21) (12)
EQ/INTERNATIONAL EQUITY INDEX..................... A 162 (176) (14) 208 (165) 43
EQ/INTERNATIONAL EQUITY INDEX..................... B 43 (45) (2) 40 (38) 2
EQ/INVESCO COMSTOCK............................... A 18 (20) (2) 32 (18) 14
EQ/INVESCO COMSTOCK............................... B 8 (6) 2 9 (8) 1
EQ/INVESCO GLOBAL REAL ESTATE..................... B 465 (16) 449 -- -- --
EQ/INVESCO INTERNATIONAL GROWTH................... B 541 (15) 526 -- -- --
EQ/IVY ENERGY..................................... B 261 (11) 250 -- -- --
EQ/IVY MID CAP GROWTH............................. B 265 (5) 260 -- -- --
EQ/IVY SCIENCE AND TECHNOLOGY..................... B 272 (15) 257 -- -- --
EQ/JPMORGAN VALUE OPPORTUNITIES................... A 71 (12) 59 22 (13) 9
EQ/JPMORGAN VALUE OPPORTUNITIES................... B 17 (21) (4) 32 (16) 16
EQ/LARGE CAP GROWTH INDEX......................... A 23 (17) 6 15 (11) 4
EQ/LARGE CAP GROWTH INDEX......................... B 32 (68) (36) 32 (65) (33)
EQ/LARGE CAP VALUE INDEX.......................... A 15 (31) (16) 27 (30) (3)
EQ/LARGE CAP VALUE INDEX.......................... B 22 (23) (1) 21 (11) 10
EQ/LAZARD EMERGING MARKETS EQUITY................. B 1,026 (60) 966 -- -- --
EQ/MFS INTERNATIONAL GROWTH....................... B 34 (36) (2) 44 (44) --
EQ/MFS INTERNATIONAL VALUE........................ B 1,081 (24) 1,057 -- -- --
EQ/MFS UTILITIES SERIES........................... B 106 (4) 102 -- -- --
EQ/MID CAP INDEX.................................. A 57 (23) 34 41 (22) 19
EQ/MID CAP INDEX.................................. B 41 (56) (15) 92 (60) 32
EQ/MONEY MARKET................................... A 4,482 (4,402) 80 3,502 (3,722) (220)
EQ/MONEY MARKET................................... B 580 (667) (87) 474 (416) 58
EQ/PIMCO REAL RETURN.............................. B 322 (17) 305 -- -- --
EQ/PIMCO TOTAL RETURN............................. B 768 (33) 735 -- -- --
EQ/PIMCO ULTRA SHORT BOND......................... A 18 (20) (2) 32 (19) 13
|
The accompanying notes are an integral part of these financial statements.
FSA-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
--------------- ------- -------- ---------- ------- -------- ----------
EQ/PIMCO ULTRA SHORT BOND......................... B 25 (26) (1) 21 (17) 4
EQ/QUALITY BOND PLUS.............................. A 39 (49) (10) 36 (66) (30)
EQ/QUALITY BOND PLUS.............................. B 10 (16) (6) 11 (18) (7)
EQ/SMALL COMPANY INDEX............................ A 45 (37) 8 60 (31) 29
EQ/SMALL COMPANY INDEX............................ B 16 (11) 5 16 (7) 9
EQ/T. ROWE PRICE GROWTH STOCK..................... A 203 (79) 124 178 (113) 65
EQ/T. ROWE PRICE GROWTH STOCK..................... B 53 (57) (4) 61 (42) 19
EQ/T. ROWE PRICE HEALTH SCIENCES.................. B 136 (2) 134 -- -- --
EQ/UBS GROWTH & INCOME............................ B 7 (23) (16) 33 (20) 13
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO... SERVICE CLASS 2 7 (8) (1) 3 (2) 1
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO........... SERVICE CLASS 2 13 (13) -- 16 (11) 5
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO. SERVICE CLASS 2 47 (38) 9 44 (21) 23
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO......... SERVICE CLASS 2 24 (21) 3 30 (23) 7
FIDELITY(R) VIP HIGH INCOME PORTFOLIO............. SERVICE CLASS 2 16 (34) (18) 21 (15) 6
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO... SERVICE CLASS 2 358 (175) 183 289 (150) 139
FIDELITY(R) VIP MID CAP PORTFOLIO................. SERVICE CLASS 2 144 (93) 51 108 (67) 41
FIDELITY(R) VIP VALUE PORTFOLIO................... SERVICE CLASS 2 23 (2) 21 4 (1) 3
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO........ SERVICE CLASS 2 4 (3) 1 4 (1) 3
FRANKLIN MUTUAL SHARES VIP FUND................... CLASS 2 27 (43) (16) 22 (16) 6
FRANKLIN SMALL CAP VALUE VIP FUND................. CLASS 2 63 (48) 15 81 (40) 41
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ SERIES II 128 (119) 9 166 (146) 20
INVESCO V.I. MID CAP CORE EQUITY FUND............. SERIES II 17 (8) 9 12 (6) 6
INVESCO V.I. SMALL CAP EQUITY FUND................ SERIES II 18 (8) 10 11 (4) 7
IVY VIP GLOBAL EQUITY INCOME...................... CLASS II 5 (6) (1) 8 (4) 4
IVY VIP HIGH INCOME............................... CLASS II 270 (104) 166 186 (93) 93
IVY VIP SMALL CAP GROWTH.......................... CLASS II 33 (16) 17 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-101
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
-------------------- ------- -------- ---------- ------- -------- ----------
MFS(R) INVESTORS TRUST SERIES..................... SERVICE CLASS 2 (6) (4) 8 (5) 3
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ SERVICE CLASS 10 (4) 6 8 (7) 1
MULTIMANAGER AGGRESSIVE EQUITY.................... A 20 (44) (24) 24 (56) (32)
MULTIMANAGER AGGRESSIVE EQUITY.................... B 55 (62) (7) 14 (17) (3)
MULTIMANAGER CORE BOND............................ A 25 (18) 7 34 (23) 11
MULTIMANAGER CORE BOND............................ B 24 (44) (20) 43 (79) (36)
MULTIMANAGER MID CAP GROWTH....................... A 1 (3) (2) 1 (2) (1)
MULTIMANAGER MID CAP GROWTH....................... B 5 (7) (2) 5 (33) (28)
MULTIMANAGER MID CAP VALUE........................ A 2 (2) -- 2 (6) (4)
MULTIMANAGER MID CAP VALUE........................ B 4 (12) (8) 6 (39) (33)
MULTIMANAGER TECHNOLOGY........................... A 43 (17) 26 37 (38) (1)
MULTIMANAGER TECHNOLOGY........................... B 59 (58) 1 34 (26) 8
NATURAL RESOURCES PORTFOLIO....................... CLASS II 79 (105) (26) 196 (180) 16
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO .. ADVISOR CLASS 25 (18) 7 29 (18) 11
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. CLASS II 12 (10) 2 18 (21) (3)
TARGET 2015 ALLOCATION............................ B 27 (14) 13 44 (24) 20
TARGET 2025 ALLOCATION............................ B 53 (18) 35 68 (18) 50
TARGET 2035 ALLOCATION............................ B 41 (10) 31 28 (6) 22
TARGET 2045 ALLOCATION............................ B 29 (6) 23 25 (12) 13
TARGET 2055 ALLOCATION............................ B 11 (4) 7 8 (2) 6
TEMPLETON DEVELOPING MARKETS VIP FUND............. CLASS 2 114 (91) 23 87 (54) 33
TEMPLETON GLOBAL BOND VIP FUND.................... CLASS 2 161 (104) 57 150 (93) 57
TEMPLETON GROWTH VIP FUND......................... CLASS 2 3 (4) (1) 5 (6) (1)
VANECK VIP GLOBAL HARD ASSETS FUND................ CLASS S 30 (38) (8) 50 (54) (4)
VANGUARD VARIABLE INSURANCE FUND - EQUITY INDEX
PORTFOLIO........................................ INVESTOR SHARE CLASS 26 (9) 17 7 (7) --
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
The -- on the Units Issued and Units Redeemed section may represent no units
issued and units redeemed or units issued and units redeemed of less than 500.
FSA-102
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
1. Organization
AXA Equitable Life Insurance Company ("AXA Equitable") Separate Account FP
("the Account") is organized as a unit investment trust, a type of
investment company, and is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940 (the "1940
Act"). The Account follows the investment company and reporting guidance of
the Financial Accounting Standards Board Accounting Standards Codification
Topic 946 - Investment Companies, which is part of accounting principles
generally accepted in the United States of America ("GAAP"). The Account has
Variable Investment Options, each of which invest in shares of a mutual fund
portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance
Funds), American Funds Insurance Series(R), AXA Premier VIP Trust ("VIP"),
BlackRock Variable Series Funds, Inc., EQ Advisors Trust ("EQAT"),
Fidelity(R) Variable Insurance Products Fund, Franklin Templeton Variable
Insurance Products Trust, Ivy Funds Variable Insurance Portfolios, Legg
Mason Partners Variable Equity Trust, MFS(R) Variable Insurance Trusts,
PIMCO Variable Insurance Trust, T. Rowe Price Equity Series, Inc., The
Prudential Series Fund, Van Eck VIP Trust, and Vanguard Variable Insurance
Fund (collectively, "the Trusts"). The Trusts are open-ended investment
management companies that sell shares of a portfolio ("Portfolio") of a
mutual fund to separate accounts of insurance companies. Each Portfolio of
the Trusts has separate investment objectives. These financial statements
and notes are those of the Variable Investment Options of the Account.
The Account consists of the Variable Investment Options listed below.
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
. Invesco V.I. Diversified Dividend Fund
. Invesco V.I. Mid Cap Core Equity Fund
. Invesco V.I. Small Cap Equity Fund
AMERICAN FUNDS INSURANCE SERIES(R)
. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
. American Funds Insurance Series(R) New World Fund(R)
AXA PREMIER VIP TRUST*
. AXA Aggressive Allocation
. AXA Conservative Allocation
. AXA Conservative-Plus Allocation
. AXA Moderate Allocation
. AXA Moderate-Plus Allocation
. Charter/SM /Multi-Sector Bond
. Charter/SM /Small Cap Growth
. Charter/SM /Small Cap Value
. Target 2015 Allocation
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
BLACKROCK VARIABLE SERIES FUNDS, INC.
. BlackRock Global Allocation V.I. Fund
EQ ADVISORS TRUST*
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT Gamco Mergers & Acquisitions
. 1290 VT Gamco Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. AXA 400 Managed Volatility
. AXA 500 Managed Volatility
. AXA 2000 Managed Volatility
. AXA Balanced Strategy
. AXA Conservative Growth Strategy
. AXA Conservative Strategy
. AXA Global Equity Managed Volatility
. AXA Growth Strategy
. AXA International Core Managed Volatility
. AXA International Managed Volatility
. AXA International Value Managed Volatility
. AXA Large Cap Core Managed Volatility
. AXA Large Cap Growth Managed Volatility
. AXA Large Cap Value Managed Volatility
. AXA Mid Cap Value Managed Volatility
. AXA Moderate Growth Strategy
. AXA/AB Small Cap Growth
. AXA/Clearbridge Large Cap Growth
. AXA/Janus Enterprise
. AXA/Loomis Sayles Growth
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/Common Stock Index
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM/SM /Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Equity Index
FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Continued)
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science And Technology
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Growth Index
. EQ/Large Cap Value Index
. EQ/Lazard Emerging Markets EQuity
. EQ/MFS International Growth
. EQ/MFS International Value
. EQ/MFS Utilities Series
. EQ/Mid Cap Index
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/T. Rowe Price Health Sciences
. EQ/UBS Growth & Income
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND
. Fidelity(R) VIP Asset Manager: Growth Portfolio
. Fidelity(R) VIP Equity-Income Portfolio
. Fidelity(R) VIP Government Money Market Portfolio
. Fidelity(R) VIP Growth & Income Portfolio
. Fidelity(R) VIP High Income Portfolio
. Fidelity(R) VIP Investment Grade Bond Portfolio
. Fidelity(R) VIP Mid Cap Portfolio
. Fidelity(R) VIP Value Portfolio
. Fidelity(R) VIP Value Strategies Portfolio
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
. Franklin Mutual Shares VIP Fund
. Franklin Small Cap Value VIP Fund
. Templeton Developing Markets VIP Fund
. Templeton Global Bond VIP Fund
. Templeton Growth VIP Fund
IVY FUNDS VARIABLE INSURANCE PORTFOLIOS
. Ivy VIP Global Equity Income/(1)/
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
LEGG MASON PARTNERS VARIABLE EQUITY TRUST
. ClearBridge Variable Mid Cap Portfolio
MFS(R) VARIABLE INSURANCE TRUSTS
. MFS(R) Investors Trust Series
. MFS(R) Massachusetts Investors Growth Stock Portfolio
PIMCO VARIABLE INSURANCE TRUST
. PIMCO CommodityRealReturn(R) Strategy Portfolio
T. ROWE PRICE EQUITY SERIES, INC.
. T. Rowe Price Equity Income Portfolio
THE PRUDENTIAL SERIES FUND
. Natural Resources Portfolio
VANECK VIP TRUST
. VanEck VIP Global Hard Assets Fund
VANGUARD VARIABLE INSURANCE FUND
. Vanguard Variable Insurance Fund -- Equity Index Portfolio
(1)Formerly known as Ivy VIP Dividend Opportunities.
* An affiliate of AXA Equitable providing advisory and other services to one
or more Portfolios of this Trust, as further described in Note 5 of these
financial statements.
FSA-104
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Concluded)
The Account is used to fund benefits for the following Variable Life
products (collectively, the "Contracts"):
. Accumulator Life . IL Legacy II
. Incentive Life . IL Legacy III
. Incentive Life 2000 . IL Protector/SM/
. Incentive Life Sales (1999 and . Incentive Life COLI
after) . Incentive Life COLI '04
. Incentive Life '02 . Champion 2000
. Incentive Life '06 . Survivorship 2000
. Incentive Life(R) Optimizer . Survivorship Incentive Life 1999
. Incentive Life Optimizer. II . Survivorship Incentive Life '02
. Incentive Life Optimizer. III . Survivorship Incentive Life(R)
. Incentive Life Plus/SM/ Legacy
. Incentive Life Plus Original . SP-Flex
Series . Corporate Owned Incentive Life(R)
. Paramount Life
. IL Legacy
|
The Incentive Life 2000, Champion 2000 and Survivorship 2000 Contracts are
herein referred to as the "Series 2000 Policies." Incentive Life Plus/SM/
Contracts offered with a prospectus dated on or after September 15, 1995,
are referred to as "Incentive Life Plus/SM/." Incentive Life Plus Contracts
issued with a prior prospectus are referred to as "Incentive Life Plus
Original Series."
Under applicable insurance law, the assets and liabilities of the Account
are clearly identified and distinguished from AXA Equitable's other assets
and liabilities. All Contracts are issued by AXA Equitable. The assets of
the Account are the property of AXA Equitable. However, the portion of the
Account's assets attributable to the Contracts will not be chargeable with
liabilities arising out of any other business AXA Equitable may conduct.
The amount retained by AXA Equitable in the Account arises primarily from
(1) contributions from AXA Equitable and (2) that portion, determined
ratably, of the Account's investment results applicable to those assets in
the Account in excess of the net assets attributable to accumulation of
units. Amounts retained by AXA Equitable are not subject to charges for
mortality and expense charges and administrative charges. Amounts retained
by AXA Equitable in the Account may be transferred at any time by AXA
Equitable to its General Account ("General Account").
Each of the Variable Investment Options of the Account bears indirect
exposure to the market, credit, and liquidity risks of the Portfolio in
which it invests. These financial statements and footnotes should be read in
conjunction with the financial statements and footnotes of the Portfolios of
the Trusts, which are distributed by AXA Equitable to the Contractowners of
the Variable Investment Options of the Account.
In the normal course of business, AXA Equitable may have agreements to
indemnify another party under given circumstances. The maximum exposure
under these arrangements is unknown as this would involve future claims that
may be, but have not been, made against the Variable Investment Options of
the Account. Based on experience, the risk of material loss is expected to
be remote.
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with GAAP.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
INVESTMENTS:
Investments are made in shares of the Portfolios and the fair values of
investments are the reported net asset values per share of the respective
Portfolios. The net asset value is determined by the Trusts using the fair
value of the underlying assets of the Portfolio less liabilities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME:
Investment transactions are recorded on the trade date. Dividend income and
and net realized gain distributions from the Portfolios are recorded and
automatically reinvested on the ex-dividend date. Net realized gain (loss )
on investments are gains and losses on redemptions of investments in the
Portfolios (determined on the identified cost basis).
FSA-105
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
2. Significant Accounting Policies (Concluded)
DUE TO AND DUE FROM:
Receivable/payable for policy-related transactions represent amounts due
to/from AXA Equitable's General Account primarily related to premiums,
surrenders, death benefits and amounts transferred among various Portfolios
by Contractowners. Receivable/payable for shares of the Portfolios
sold/purchased represent unsettled trades.
ACCUMULATION NONUNITIZED:
Accumulation nonunitized represents a product offered based upon a dollar
amount (starting at $1) rather than units. It is similar to Accumulation
Units accounts, which are based upon units, as the dollar amount of the
Contractowner account changes with the investment activity of the Variable
Investment Option the Contract is invested in, net of contract charges.
CONTRACT PAYMENTS AND TRANSFERS:
Payments received from Contractowners represent participant contributions
under the Contracts reduced by deductions and charges, including premium
charges, as applicable, and state premium taxes. Contractowners may allocate
amounts in their individual accounts to the Variable Investment Options, and
(except for SP-Flex Contracts), to the guaranteed interest account of AXA
Equitable's General Account, and/or index fund options of Separate Account
No. 67.
Transfers between Variable Investment Options including the guaranteed
interest account, net, are amounts that participants have directed to be
moved among Portfolios, including permitted transfers to and from the
guaranteed interest account, and/or index fund options of Separate Account
No. 67. The net assets of any Variable Investment Option may not be less
than the aggregate value of the Contractowner accounts allocated to that
Variable Investment Option. AXA Equitable is required by state insurance
laws to set aside additional assets in AXA Equitable's General Account to
provide for other policy benefits. AXA Equitable's General Account is
subject to creditor rights.
Redemptions for contract benefits and terminations are payments to
participants and beneficiaries made under the terms of the Contracts and
amounts that participants have requested to be withdrawn and paid to them.
Withdrawal charges, if any, are included in Redemptions for contract
benefits and terminations to the extent that such charges apply to the
Contracts. Administrative charges, if any, are included in Contract
maintenance charges to the extent that such charges apply to the Contracts.
TAXES:
The operations of the Account are included in the federal income tax return
of AXA Equitable which is taxed as a life insurance company under the
provisions of the Internal Revenue Code. No federal income tax based on net
income or realized and unrealized capital gains is currently applicable to
Contracts participating in the Account by reason of applicable provisions of
the Internal Revenue Code and no federal income tax payable by AXA Equitable
is expected to affect the unit value of Contracts participating in the
Account. Accordingly, no provision for income taxes is required. However,
AXA Equitable retains the right to charge for any federal income tax which
is attributable to the Account if the law is changed.
3. Fair Value Disclosures
Under GAAP, fair value is the price that would be received for an asset or
paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. GAAP also establishes a
fair value hierarchy that requires an entity to maximize the use of
observable inputs and minimize the use of unobservable inputs when measuring
fair value, and identifies three levels of inputs that may be used to
measure fair value:
Level 1 -- Quoted prices that are publicly available for identical assets in
active markets. Level 1 fair values generally are supported by market
transactions that occur with sufficient frequency and volume to provide
pricing information on an ongoing basis.
Level 2 -- Observable inputs other than Level 1 prices, such as quoted
prices for similar assets, quoted prices in markets that are not active, and
inputs to model-derived valuations that are directly observable or can be
corroborated by observable market data.
Level 3 -- Unobservable inputs supported by little or no market activity and
often requiring significant judgment or estimation, such as an entity's own
assumptions about the cash flows or other significant components of value
that market participants would use in pricing the asset or liability.
All investments of each Variable Investment Option of the Account have been
classified as Level 1. There were no transfers between level 1, level 2 and
level 3 during the year.
FSA-106
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio
The cost of purchases and proceeds from sales of Portfolios for the year
ended December 31, 2018 were as follows:
PURCHASES SALES
------------ ------------
1290 VT Convertible Securities........................................................... $ 908,906 $ 179,688
1290 VT DoubleLine Dynamic Allocation.................................................... 1,756,785 2,371,422
1290 VT DoubleLine Opportunistic Bond.................................................... 570,015 144,720
1290 VT Equity Income.................................................................... 7,894,957 2,417,081
1290 VT Gamco Mergers & Acquisitions..................................................... 3,248,893 2,896,325
1290 VT Gamco Small Company Value........................................................ 26,861,276 22,036,325
1290 VT SmartBeta Equity................................................................. 1,017,412 191,183
1290 VT Socially Responsible............................................................. 960,310 1,439,902
All Asset Growth-Alt 20.................................................................. 8,222,453 3,296,590
American Funds Insurance Series(R) Global Small Capitalization Fund/SM/.................. 3,248,746 958,715
American Funds Insurance Series(R) New World Fund(R)..................................... 12,043,624 2,380,343
AXA 400 Managed Volatility............................................................... 1,032,807 1,011,989
AXA 500 Managed Volatility............................................................... 3,230,347 1,685,738
AXA 2000 Managed Volatility.............................................................. 1,315,936 733,567
AXA Aggressive Allocation................................................................ 23,047,413 19,723,191
AXA Balanced Strategy.................................................................... 7,413,328 2,632,878
AXA Conservative Allocation.............................................................. 4,608,404 4,500,357
AXA Conservative Growth Strategy......................................................... 855,025 720,816
AXA Conservative Strategy................................................................ 1,118,965 663,607
AXA Conservative-Plus Allocation......................................................... 5,818,381 5,833,980
AXA Global Equity Managed Volatility..................................................... 15,951,941 15,807,304
AXA Growth Strategy...................................................................... 6,867,561 4,732,899
AXA International Core Managed Volatility................................................ 3,550,246 5,533,520
AXA International Managed Volatility..................................................... 1,011,075 386,255
AXA International Value Managed Volatility............................................... 6,117,094 9,478,502
AXA Large Cap Core Managed Volatility.................................................... 4,029,933 2,704,999
AXA Large Cap Growth Managed Volatility.................................................. 28,959,749 30,249,995
AXA Large Cap Value Managed Volatility................................................... 32,319,185 37,933,605
AXA Mid Cap Value Managed Volatility..................................................... 21,785,425 22,166,413
AXA Moderate Allocation.................................................................. 76,984,189 83,305,728
AXA Moderate Growth Strategy............................................................. 11,862,989 4,925,299
AXA Moderate-Plus Allocation............................................................. 50,558,433 60,222,292
AXA/AB Small Cap Growth.................................................................. 44,250,852 22,193,108
AXA/Clearbridge Large Cap Growth......................................................... 13,793,575 11,357,474
AXA/Janus Enterprise..................................................................... 7,613,958 9,090,430
AXA/Loomis Sayles Growth................................................................. 13,427,796 8,002,194
BlackRock Global Allocation V.I. Fund.................................................... 3,287,502 1,357,824
Charter/SM/ Multi-Sector Bond............................................................ 5,917,176 9,459,063
Charter/SM/ Small Cap Growth............................................................. 4,961,637 2,995,009
Charter/SM/ Small Cap Value.............................................................. 2,358,557 4,708,732
ClearBridge Variable Mid Cap Portfolio................................................... 560,119 156,857
EQ/American Century Mid Cap Value........................................................ 55,317,132 1,282,284
EQ/BlackRock Basic Value Equity.......................................................... 32,689,194 26,002,008
EQ/Capital Guardian Research............................................................. 18,679,312 11,345,095
EQ/Common Stock Index.................................................................... 135,954,238 186,357,714
EQ/Core Bond Index....................................................................... 6,846,477 8,184,427
EQ/Equity 500 Index...................................................................... 104,223,887 103,669,937
EQ/Fidelity Institutional AM/SM/ Large Cap............................................... 109,716,707 3,778,191
EQ/Franklin Rising Dividends............................................................. 59,689,147 3,360,499
EQ/Franklin Strategic Income............................................................. 35,028,431 866,146
EQ/Global Bond Plus...................................................................... 2,582,039 2,518,491
|
FSA-107
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Continued)
PURCHASES SALES
------------ ------------
EQ/Goldman Sachs Mid Cap Value................................................................... $ 9,650,342 $ 294,756
EQ/Intermediate Government Bond.................................................................. 6,196,759 46,636,788
EQ/International Equity Index.................................................................... 24,926,472 30,192,929
EQ/Invesco Comstock.............................................................................. 4,958,413 3,823,934
EQ/Invesco Global Real Estate.................................................................... 38,172,463 1,126,032
EQ/Invesco International Growth.................................................................. 35,222,745 1,336,815
EQ/Ivy Energy.................................................................................... 15,166,547 363,539
EQ/Ivy Mid Cap Growth............................................................................ 37,251,933 817,732
EQ/Ivy Science And Technology.................................................................... 39,663,326 2,947,375
EQ/JPMorgan Value Opportunities.................................................................. 14,069,232 8,412,337
EQ/Large Cap Growth Index........................................................................ 20,129,904 18,275,077
EQ/Large Cap Value Index......................................................................... 6,206,203 6,468,630
EQ/Lazard Emerging Markets Equity................................................................ 56,110,645 2,785,617
EQ/MFS International Growth...................................................................... 11,473,563 6,004,359
EQ/MFS International Value....................................................................... 109,777,012 2,299,765
EQ/MFS Utilities Series.......................................................................... 2,588,703 201,945
EQ/Mid Cap Index................................................................................. 28,056,220 19,963,043
EQ/Money Market.................................................................................. 199,251,630 215,403,115
EQ/PIMCO Real Return............................................................................. 25,870,834 1,597,898
EQ/PIMCO Total Return............................................................................ 70,255,240 2,442,187
EQ/PIMCO Ultra Short Bond........................................................................ 5,741,098 5,277,481
EQ/Quality Bond Plus............................................................................. 4,768,452 7,696,694
EQ/Small Company Index........................................................................... 23,146,392 13,900,781
EQ/T. Rowe Price Growth Stock.................................................................... 34,458,545 19,913,019
EQ/T. Rowe Price Health Sciences................................................................. 9,112,283 407,385
EQ/UBS Growth & Income........................................................................... 2,967,337 4,446,507
Fidelity(R) VIP Asset Manager: Growth Portfolio.................................................. 417,610 702,656
Fidelity(R) VIP Equity-Income Portfolio.......................................................... 523,360 458,734
Fidelity(R) VIP Government Money Market Portfolio................................................ 819,828 441,823
Fidelity(R) VIP Growth & Income Portfolio........................................................ 2,332,079 2,251,602
Fidelity(R) VIP High Income Portfolio............................................................ 1,011,739 2,193,076
Fidelity(R) VIP Investment Grade Bond Portfolio.................................................. 30,926,755 9,186,320
Fidelity(R) VIP Mid Cap Portfolio................................................................ 11,547,096 7,001,719
Fidelity(R) VIP Value Portfolio.................................................................. 920,966 150,283
Fidelity(R) VIP Value Strategies Portfolio ...................................................... 270,611 430,168
Franklin Mutual Shares VIP Fund.................................................................. 1,566,507 2,902,810
Franklin Small Cap Value VIP Fund................................................................ 5,064,151 2,537,019
Invesco V.I. Diversified Dividend Fund........................................................... 3,657,803 2,594,897
Invesco V.I. Mid Cap Core Equity Fund............................................................ 1,910,037 1,087,842
Invesco V.I. Small Cap Equity Fund............................................................... 1,423,305 959,812
Ivy VIP Global Equity Income..................................................................... 174,021 491,091
Ivy VIP High Income.............................................................................. 11,701,086 6,053,420
Ivy VIP Small Cap Growth......................................................................... 7,851,540 2,639,634
MFS(R) Investors Trust Series.................................................................... 544,574 1,068,435
MFS(R) Massachusetts Investors Growth Stock Portfolio............................................ 2,706,484 1,083,302
Multimanager Aggressive Equity................................................................... 68,977,681 50,760,463
Multimanager Core Bond........................................................................... 6,919,099 9,667,709
Multimanager Mid Cap Growth...................................................................... 6,039,496 3,450,655
Multimanager Mid Cap Value....................................................................... 4,566,495 4,106,317
Multimanager Technology.......................................................................... 49,874,863 33,337,893
Natural Resources Portfolio...................................................................... 3,889,499 5,664,775
PIMCO CommodityRealReturn(R) Strategy Portfolio.................................................. 1,947,049 1,246,936
T. Rowe Price Equity Income Portfolio............................................................ 3,981,862 2,031,385
|
FSA-108
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Concluded)
PURCHASES SALES
----------- -----------
Target 2015 Allocation....................................... $ 909,414 $ 859,824
Target 2025 Allocation....................................... 4,369,968 1,429,794
Target 2035 Allocation....................................... 3,072,839 1,111,330
Target 2045 Allocation....................................... 1,794,011 419,651
Target 2055 Allocation....................................... 720,388 299,175
Templeton Developing Markets VIP Fund........................ 14,385,495 11,499,331
Templeton Global Bond VIP Fund............................... 7,210,224 7,327,369
Templeton Growth VIP Fund.................................... 1,079,241 658,463
VanEck VIP Global Hard Assets Fund........................... 2,234,810 2,845,333
Vanguard Variable Insurance Fund -- Equity Index Portfolio... 8,187,225 2,796,592
|
5. Expenses and Related Party Transactions
The assets in each Variable Investment Option are invested in shares of a
corresponding Portfolio of the Trusts. Shares are offered by the Portfolios
at net asset value. Shares in which the Variable Investment Options invest
are categorized by the share class of the Portfolio. EQAT and VIP issue
Class A, Class B and Class K shares. All share classes issued by EQAT and
VIP are subject to fees for investment management, advisory services,
administration and other Portfolio expenses. Class A and Class B are also
subject to distribution fees imposed under a distribution plan (herein the
"Rule 12b-1 Plans") approved by the EQAT and VIP Trusts' Board of Trustees
and adopted by the applicable Trust. The Rule 12b-1 Plans provide that the
EQAT and VIP Trusts, on behalf of each related Portfolio, may charge a
maximum annual distribution and/or service (12b-1) fee of 0.25% of the
average daily net assets of a Portfolio attributable to its Class A or Class
B shares. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors"), affiliates of AXA Equitable, may
also receive distribution fees under Rule 12b-1 Plans as described above.
The class-specific expenses attributable to the investment in each share
class of the Portfolios in which the Variable Investment Options invest are
borne by the specific unit classes of the Variable Investment Options to
which the investments are attributable.
AXA Equitable Funds Management Group, LLC ("FMG LLC"), a wholly-owned
subsidiary of AXA Equitable serves as investment manager of the Portfolios
of EQAT and VIP. FMG LLC either (1) directly manages the Portfolios or
(2) contracts with and oversees the activities of the investment
sub-advisors with respect to the Portfolios and is responsible for retaining
and discontinuing the services of those sub-advisors. FMG LLC receives
management fees for services performed in its capacity as investment manager
of the Portfolios of EQAT and VIP, and pays fees to the sub-advisors for
sub-advisory services to the respective Portfolios. FMG LLC also serves as
administrator of the Portfolios of EQAT and VIP. As the administrator, FMG
LLC either (1) carries out its responsibilities directly or (2) through
sub-contracting with third-party providers. FMG LLC receives administrative
fees for services performed in its capacity as administrator of the
Portfolios of EQAT and VIP. Expenses of the Portfolios of EQAT and VIP
generally vary, depending on net asset levels for individual Portfolios, and
range from a low annual rate of 0.57% to a high of 1.45% (after waivers,
reimbursements, fees paid indirectly and including indirect expenses, as
applicable) of the average daily net assets of the Portfolios of EQAT and
VIP. Since these fees and expenses are reflected in the net asset value of
the shares of the Portfolios and the total returns of the Variable
Investment Options, they are not included in the expenses or expense ratios
of the Variable Investment Options.
AXA Equitable, AXA Advisors or AXA Distributors may directly or indirectly
receive 12b-1 fees and additional payments from certain unaffiliated
Portfolios, their advisers, sub-advisers, distributors or affiliates, for
providing certain administrative, marketing, distribution and/or shareholder
support services in connection with the Variable Investment Options'
investment in the Portfolios. These fees and payments range from 0.00% to
0.60% of the unaffiliated Portfolios' average daily net assets. AXA Advisors
or AXA Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the policies and/or the advisers' respective
Portfolios.
AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor
for a number of Portfolios in EQAT and VIP including the AXA/AB Small Cap
Growth, EQ/Common Stock Index, EQ/Equity 500 Index, EQ/International Equity
Index, EQ/Large Cap Growth Index, EQ/Large Cap Value Index, EQ/Mid Cap Index
and EQ/Small Company Index, as well as a portion of AXA Large Cap Value
Managed Volatility, EQ/Quality Bond PLUS, Multimanager Aggressive Equity,
Multimanager Mid Cap Growth and Multimanager Technology. AllianceBernstein
is a limited partnership which is indirectly majority-owned by AXA Equitable
Holdings, Inc.
AXA Advisors and AXA Distributors are distributors and principal
underwriters of the Account. They are both registered with the SEC as
broker-dealers and are members of the Financial Industry Regulatory
Authority ("FINRA").
FSA-109
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
5. Expenses and Related Party Transactions (Concluded)
The Contracts are sold by financial professionals who are registered
representatives of AXA Advisors and licensed insurance agents of AXA
Network, LLC ("AXA Network") or its subsidiaries. The Contracts are also
sold through licensed insurance agencies (both affiliated and unaffiliated
with AXA Equitable) and their affiliated broker-dealers (who are registered
with the SEC and members of the FINRA) that have entered into selling
agreements with AXA Distributors. The licensed insurance agents who sell
Contracts for these companies are appointed as agents of AXA Equitable and
are registered representatives of the agencies and affiliated broker-dealer.
AXA Network receives commissions under its General Sales Agreement with AXA
Equitable and its Networking Agreement with AXA Advisors. AXA Advisors
receives service-related payments under its Supervisory and Distribution
Agreement with AXA Equitable. The financial professionals are compensated on
a commission basis by AXA Network.
AXA Equitable serves as the transfer agent for EQAT and VIP.
6. Reorganization
In October 2018, AXA Equitable replaced certain portfolios (each a
"Substituted Portfolio" and together, the "Substituted Portfolios") which
were offered for certain variable annuity contracts and/or variable life
insurance contracts with new and substantially similar portfolios (each a
"Replacement Portfolio" and together, the "Replacement Portfolios").
Correspondingly, the Variable Investment Options that invested in the
Substituted Portfolios were replaced with the Variable Investment Options
that invest in the Replacement Portfolios.
------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 AMERICAN CENTURY VP MID CAP EQ/AMERICAN CENTURY
VALUE FUND MID CAP VALUE
------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 2,588,795 2,588,795
Net Asset Value $ 20.52 $ 20.52
Net Assets Before Substitution $ 53,122,080 $ --
Net Assets After Substitution $ -- $ 53,122,080
Realized Gain $ 1,058,165
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FIDELITY(R) VIP CONTRAFUND(R) EQ/FIDELITY INSTITUTIONAL AM/SM/
PORTFOLIO LARGE CAP
------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS 2 CLASS B
Shares 3,085,057 3,085,057
Net Asset Value $ 34.69 $ 34.69
Net Assets Before Substitution $107,020,640 $ --
Net Assets After Substitution $ -- $107,020,640
Realized Gain $ 4,374,131
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN RISING EQ/FRANKLIN RISING DIVIDENDS
DIVIDENDS VIP FUND
------------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 2,166,839 2,166,839
Net Asset Value $ 27.02 $ 27.02
Net Assets Before Substitution $ 58,544,319 $ --
Net Assets After Substitution $ -- $ 58,544,319
Realized Gain $ 2,340,403
------------------------------------------------------------------------------------------------
|
FSA-110
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN STRATEGIC EQ/FRANKLIN STRATEGIC INCOME
INCOME VIP FUND
--------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 3,248,845 3,248,845
Net Asset Value $ 10.42 $ 10.42
Net Assets Before Substitution $ 33,858,489 $ --
Net Assets After Substitution -- $ 33,858,489
Realized Loss $ (1,778,147)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 GOLDMAN SACHS VIT MID CAP EQ/GOLDMAN SACHS MID CAP VALUE
VALUE FUND
--------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 544,224 544,224
Net Asset Value $ 16.69 $ 16.69
Net Assets Before Substitution $ 9,083,104 $ --
Net Assets After Substitution $ -- $ 9,083,104
Realized Gain $ 153,986
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. GLOBAL EQ/INVESCO GLOBAL REAL ESTATE
REAL ESTATE FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 2,388,624 2,388,624
Net Asset Value $ 15.23 $ 15.23
Net Assets Before Substitution $ 36,378,751 $ --
Net Assets After Substitution $ -- $ 36,378,751
Realized Loss $ (2,574,457)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. INTERNATIONAL EQ/INVESCO INTERNATIONAL GROWTH
GROWTH FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 969,615 969,615
Net Asset Value $ 34.38 $ 34.38
Net Assets Before Substitution $ 33,335,358 $ --
Net Assets After Substitution $ -- $ 33,335,358
Realized Loss $ (1,596,562)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP ENERGY EQ/IVY ENERGY
--------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,446,697 2,446,697
Net Asset Value $ 5.72 $ 5.72
Net Assets Before Substitution $ 13,993,395 $ --
Net Assets After Substitution $ -- $ 13,993,395
Realized Loss $ (512,717)
--------------------------------------------------------------------------------------------
|
FSA-111
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP MID CAP GROWTH EQ/IVY MID CAP GROWTH
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,981,041 2,981,041
Net Asset Value $ 12.14 $ 12.14
Net Assets Before Substitution $ 36,195,798 $ --
Net Assets After Substitution $ -- $ 36,195,798
Realized Gain $ 4,863,881
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP SCIENCE AND TECHNOLOGY EQ/IVY SCIENCE AND TECHNOLOGY
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 1,236,407 1,236,407
Net Asset Value $ 28.96 $ 28.96
Net Assets Before Substitution $ 35,811,031 $ --
Net Assets After Substitution $ -- $ 35,811,031
Realized Gain $ 4,512,498
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 LAZARD RETIREMENT EMERGING MARKETS EQ/LAZARD EMERGING
EQUITY PORTFOLIO MARKETS EQUITY
--------------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 2,720,369 2,720,369
Net Asset Value $ 19.44 $ 19.44
Net Assets Before Substitution $ 52,883,976 $ --
Net Assets After Substitution $ -- $ 52,883,976
Realized Loss $ (3,500,104)
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) INTERNATIONAL EQ/MFS INTERNATIONAL VALUE
VALUE PORTFOLIO
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 4,131,041 4,131,041
Net Asset Value $ 25.69 $ 25.69
Net Assets Before Substitution $106,126,439 $ --
Net Assets After Substitution $ -- $106,126,439
Realized Gain $ 7,133,907
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) UTILITIES SERIES EQ/MFS UTILITIES SERIES
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 80,952 80,952
Net Asset Value $ 29.84 $ 29.84
Net Assets Before Substitution $ 2,415,612 $ --
Net Assets After Substitution $ -- $ 2,415,612
Realized Gain $ 174,517
--------------------------------------------------------------------------------------------------
|
FSA-112
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Concluded)
----------------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO REAL RETURN PORTFOLIO EQ/PIMCO REAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 2,076,751 2,076,751
Net Asset Value $ 11.87 $ 11.87
Net Assets Before Substitution $24,651,040 $ --
Net Assets After Substitution $ -- $24,651,040
Realized Loss $(1,438,476)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO TOTAL RETURN PORTFOLIO EQ/PIMCO TOTAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 6,300,749 6,300,749
Net Asset Value $ 10.51 $ 10.51
Net Assets Before Substitution $66,220,873 $ --
Net Assets After Substitution $ -- $66,220,873
Realized Loss $(2,751,515)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 T. ROWE PRICE HEALTH SCIENCES PORTFOLIO EQ/T. ROWE PRICE HEALTH SCIENCES
----------------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 180,949 180,949
Net Asset Value $ 45.62 $ 45.62
Net Assets Before Substitution $ 8,254,879 $ --
Net Assets After Substitution $ -- $ 8,254,879
Realized Gain $ 929,504
----------------------------------------------------------------------------------------------------------
|
In May 2017, pursuant to an Agreement and Plan of Reorganization and
Termination, as approved by contractholders, All Asset Growth-Alt 20 (the
"Surviving Portfolio") acquired the net assets of All Asset Aggressive-Alt
25 (the "Removed Portfolio"). Correspondingly, the Variable Investment
Options that invested in the Removed Portfolio (the "Removed Investment
Option") were replaced with the Variable Investment Options that invest in
the Surviving Portfolio (the "Surviving Investment Option"). For accounting
purposes, these reorganizations were treated as a merger.
-------------------------------------------------------------------------------
REMOVED PORTFOLIO SURVIVING PORTFOLIO
-------------------------------------------------------------------------------
MAY 19, 2017 ALL ASSET AGGRESSIVE-ALT 25 ALL ASSET GROWTH-ALT 20
-------------------------------------------------------------------------------
Share Class CLASS B CLASS B
Shares 496,159 1,323,456
Net Asset Value $ 12.58 $ 20.09
Net Assets Before Merger $6,242,639 $20,339,358
Net Assets After Merger $ -- $26,581,997
Unrealized Loss $ 347,214
-------------------------------------------------------------------------------
|
FSA-113
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges
The table below lists the charges for each product. These charges are
reflected as "Asset-based Charges" in the Statement of Operations or as part
of "Contractowners Transactions" in the Statement of Changes in Net Assets.
MORTALITY AND
EXPENSE RISKS MORTALITY ADMINISTRATIVE TOTAL
------------- --------- -------------- ------
Accumulator Life............................................ varies/(b)(d)/ varies/(b)/ varies/(b)(f)/ varies
Incentive Life, Champion 2000............................... 0.60%/(a)/ -- -- 0.60%
Incentive Life 2000, Incentive Life 1999, Incentive Life
Plus...................................................... 0.60%/(l)(n)/ -- -- 0.60%
Incentive Life '02.......................................... varies/(b)(g)/ -- -- 0.80%
Incentive Life '06.......................................... 0.85%/(b)(e)/ -- -- 0.85%
Survivorship Incentive Life '02............................. 0.90%/(b)(m)/ -- -- 0.90%
Paramount Life.............................................. 0.60%/(a)/ -- -- 0.60%
Incentive Life Plus Original Series......................... 0.60%/(b)(l)/ -- -- 0.60%
Incentive Life COLI......................................... 0.60%/(b)/ -- -- 0.60%
Incentive Life COLI '04..................................... 0.75%/(b)(c)/ -- -- 0.75%
Survivorship Incentive Life 1999............................ 0.60%/(a)/ -- -- 0.60%
Survivorship 2000........................................... 0.90%/(a)/ -- -- 0.90%
IL Legacy................................................... 1.75%/(b)(h)/ -- -- 1.75%
IL Legacy II................................................ 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Legacy III............................................... 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Protector................................................ 0.80%/(a)/ -- -- 0.80%
SP-Flex..................................................... 0.85%/(a)/ 0.60%/(a)/ 0.35%/(a)/ 1.80%
Incentive Life(R) Optimizer................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer II................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer III................................ 0.60%/(b)(l)(o)/ -- -- 0.60%
Survivorship Incentive Life(R) Legacy....................... 0.55%/(b)(j)/ -- -- 0.55%
Corporate Owned Incentive Life(R)........................... 0.35%/(b)(k)(l)/ -- -- 0.35%
|
(a)Charged to daily net assets of the Account.
(b)Charged to Contractowners Account and is included in Transfer for contract
benefits and terminations in the Statements of Changes in Net Assets.
(c)Policy years 1-5 0.75% (1.00% maximum) Policy years 6-20 0.55% (0.75%
maximum) Policy years 21+ 0.35% (0.50% maximum)
(d)Varies by age, sex, class. The highest current charge is 1.21%. Policy
years 1-10 0.71% to 1.46% maximum Policy years 11+ 0.30% to 0.50% maximum
(e)Policy years 1-8 0.85% (1.00% maximum) Policy years 9-10 0.00% (1.00%
maximum) Policy years 11+ 0.00% (0.50% maximum)
(f)Policy years 1-10 0.72% to 1.73% Policy years 11+ 0.11% to 0.32%
(g)Policy years 1-15 0.80%, 0.70% or 0.60% depending (0.80% maximum) Policy
years 16+ 0.30% or 0.20% depending (0.50% maximum)
(h)Policy years 1-10 1.75% (maximum and current) Policy years 11-20 0.25%
(0.50% maximum) Policy Years 21+ 0.00% (0.50% maximum)
(i)Policy years 1-15 0.85% (maximum and current) Policy years 16+ 0.00%
(0.85% maximum) For policies with the ENLG rider, there is an additional
charge of 0.15% deducted while the rider is in effect.
(j)Policy years 1-15 0.55% (maximum and current) Policy years 16+ 0.05%
(0.55% maximum) For policies with the ENLG rider, there is an additional
charge of 0.70% deducted until age 100 of the younger insured.
(k)Policy years 1-10 0.15% (0.50% maximum); however, 0.35% (0.50% maximum) of
any account value allocated to MSO segments. Policy years 11+ 0.10% (0.35%
maximum)
(l)For policies with MSO, there is an additional charge of 1.40% (2.40%
maximum) of any policy account value allocated to each segment.
(m)Policy year 1-15 0.90% (maximum and current) Policy year 16+ 0.60% or
0.30% depending (0.90% maximum)
(n)Charged to daily net assets of the Account for all investment options
except MSO. However, for any account value allocated to MSO segments, the
M & E is charged to Contract owners Account.
(o)Policy years 1-8 0.60% (current) Policy years 1-10 1.00% (maximum) Policy
years 9+ 0.00% (current) Policy years 11+ 0.50% (maximum)
The Accumulator Life Program utilizes two insurance products -- a single
premium fixed annuity contract and a flexible premium variable life
insurance policy. The Program is designed to provide a simple method to
purchase a variable life insurance policy with a single purchase payment.
The Accumulator Life mortality and expense guaranteed risk charges are 0.71%
to 1.46% in years 1 to 10 and 0.30% to 0.50% in years 11 and beyond. The
current mortality and expense risk charges are lower than the guaranteed
charges. The highest current charge is 1.21%. Beginning in year 11, the
current rates are scheduled to decrease further. As Accumulator Life was
first offered in
FSA-114
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Continued)
2004, future decreases have not yet taken effect. The Accumulator Life
guaranteed administrative charges vary in years 1 to 10 from 0.72% to 1.73%
of the Policy Account Value, depending on age, sex, and class. The current
and guaranteed basis charges are equal. Beginning in policy year 11 the
administrative rates are guaranteed to decrease. The Accumulator Life
current cost of insurance charges vary in years 1 to 10 from 1.27% to 2.42%
of the greater of (1) the Policy Account Value and (2) the Mortality Charge
Base (accumulation of the 7-pay premiums due, up to that time at 4%),
depending on the age, sex, and class. Beginning in policy year 11 the
current cost of insurance charges decrease on a current basis. The cost of
insurance charge is capped at the guaranteed cost of insurance rate times
the Net Amount of Risk.
The Incentive Life '02 mortality and expense risk charge of 0.80%, 0.70% or
0.60% will be in effect for the first 15 policy years depending upon the
value of the Contractowner's Variable Investment Options. For policy years
16 and later the charge is currently 0.30% or 0.20%, depending upon the
value of the Contractowner's Variable Investment Options. The Survivorship
Incentive Life '02 mortality and expense risk charge of 0.90% will be in
effect for the first 15 policy years. For policy years 16 and later the
charge is currently 0.60% and 0.30% depending upon the value of the
Contractowner's Variable Investment Options. The current mortality and
expense risk charges are lower than guaranteed charges.
The Incentive Life Legacy mortality and expense risk charge of 1.75% will be
in effect for the first ten policy years on a current and guaranteed basis.
For policy years 11-20, the charge is currently 0.25% and for policy years
21 and later, it is 0.00%. In policy years 11 and later the current
mortality and expense risk charges are lower than guaranteed charges.
The Incentive Life '06, Incentive Life(R) Optimizer and Incentive Life
Optimizer II mortality and expense risk charge of 0.85% will be in effect
for the first eight policy years on a current basis. For policy years 9 and
later, no charge is deducted on a current basis. The current mortality and
expense risk charges are lower than the guaranteed charges.
The Incentive Life Optimizer III mortality and expense risk charge of 0.60%
will be in effect for the first eight policy years on a current basis. For
policy years 9 and later, no charge is deducted on a current basis. The
current mortality and expense risk charges are lower than the guaranteed
charges.
The Incentive Life Legacy II and Incentive Life Legacy III mortality and
expense risk charge of 0.85% will be in effect for the first fifteen policy
years on a current basis. For policy years 16 and later, no charge is
deducted on a current basis. The current mortality and expense risk charges
for policy years 16 and later are lower than the guaranteed charges.
The Survivorship Incentive Life(R) Legacy mortality and expense risk charge
of 0.55% will be in effect for the first fifteen policy years. For policy
years sixteen and later the charge is currently 0.05%. The current mortality
and expense risk charges are lower than the guaranteed charges. For policies
with the ENLG rider, there is an additional charge of 0.70% deducted until
age 100 of the younger insured.
The Corporate Owned Incentive Life(R) mortality and expense risk charge of
0.15% (0.35% of any account value allocated to MSO segments) will be in
effect for the first ten policy years on a current basis. For policy years
11 and later, the charge will be 0.10% on a current basis. The current
mortality and expense risk charges are lower than the guaranteed charges.
For IL 2000, IL Plus, IL Plus Original Series, IL 99, IL Optimizer, IL
Optimizer II, IL Legacy II, IL Legacy III, IL Optimizer III and Corporate
Owned Incentive Life(R) policies, there is an additional charge of 1.40% of
any policy account value allocated to each segment of the Market Stabilizer
Option on a current basis. The current percentage charge for MSO is lower
than the guaranteed charge.
Before amounts are remitted to the Account for Incentive Life, IL Plus
Original Series, IL Protector, Incentive Life Plus, Incentive Life COLI,
Incentive Life COLI '04, Corporate Owned Incentive Life, and the Series 2000
Policies, AXA Equitable deducts a charge for taxes and either an initial
policy fee (Incentive Life) or a premium charge (Incentive Life Plus,
Survivorship Incentive Life 1999, Survivorship Incentive Life '02, Incentive
Life 1999, Incentive Life '02, Incentive Life '06, Incentive Life Legacy,
Paramount Life, IL Protector, Incentive Life COLI '04, IL Optimizer, IL
Optimizer II, SIL Legacy, IL Legacy II, IL Legacy III, Corporate Owned
Incentive Life, and Series 2000 Policies) from premiums.
Under SP-Flex, the entire initial premium is allocated to the Account.
Before any additional premiums under SP-Flex are allocated to the Account,
however, an administrative charge is deducted.
FSA-115
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Concluded)
Contractowners' accounts are assessed monthly by AXA Equitable for mortality
cost of insurance and optional rider benefit charges and administrative
charges. SP-Flex mortality and expense and administrative charges are
deducted daily. These charges are withdrawn from the Accounts along with
amounts for additional benefits and are included in Transfers for contract
benefits and terminations and Contract maintenance charges. Policy loans are
reported in the Statements of Changes in Net Assets, in Transfers between
Variable Investment Options including guaranteed interest account, net.
Surrenders are included in the Transfers for contract benefits and
terminations.
The table below lists all the fees charged by the Separate Account assessed
as a redemption of units (except for those deducted from premium as noted);
the range presented represents the fees that are actually assessed. Actual
amounts may vary or may be zero depending on the Contract, election of
riders, or Contractowner's account value. These charges are reflected as
part of "Contractowners Transactions" in the Statement of Changes in Net
Assets.
WHEN CHARGE
CHARGES IS DEDUCTED AMOUNT DEDUCTED HOW DEDUCTED
------- ----------- --------------- ------------
Riders Monthly Amount varies depending on the Unit liquidation from
specifics of your policy. Depending on account value
the rider, may be additional charges
deducted from premiums and upon
exercise of a policy continuation
benefit.
Death Benefit Guarantee (Guaranteed Monthly LOW - $0.01 for each $1,000 of face Unit liquidation from
Minimum Death Benefit Charge) amount of the policy account value
HIGH - $0.02 for each $1,000 of face
amount of the policy
Charge for State and Local Tax Expense At time of premium Varies by state of residence of insured Deducted from premium
payment person.
Charge for Federal Tax Expenses At time of premium 1.25% Deducted from premium
payment
Premium Charge At time of premium Depending on the policy, varies from a Deducted from premium
payment flat fee of $2 to $250 to a range of
2.25% to 30% of premiums
Monthly administrative charges Monthly LOW - $8 per month Unit liquidation from
HIGH - Depending on face amount, account value
policyholder age at issue and policy
year, up to $55 per month. Depending on
the policy, may also be a charge per
$1,000 of face amount ranging from
$0.03 to $0.70
Cost of Insurance (COI) and Rating Monthly Amount varies depending upon specifics Unit liquidation from
charge of policy. COI based upon amount at account value
risk. Rating Charge based upon face
amount of insurance.
Surrender, termination or decrease in At time of transaction The amount of surrender charges if Unit liquidation from
face amount of policy during the first applicable is set forth in your policy. account value
10 or 15 years depending on Contract
Partial Withdrawal At time of transaction $25 (or if less, 2% of the withdrawal), Unit liquidation from
if applicable account value
Increase in policy's face amount At time of transaction $1.50 for each $1,000 of the increase Unit liquidation from
(but not more than $250 in total), if account value
applicable
Administrative Surrender Charge At time of transaction $2 to $6 per 1,000 depending on issue Unit liquidation from
age which after the third year declines account value
if applicable Depending on the policy,
may also be a charge per policy ranging
from $450 to $540 which after the third
year declines
Transfers among investment options At time of transaction LOW - $25 after 12 transfers if Unit liquidation from
applicable account value
HIGH - $25 per transfer
|
FSA-116
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights
The ranges for the total return ratios and unit values correspond to the
product groupings that produced the lowest and highest expense ratios. The
lowest and the highest contract charge represents the annual contract
expenses consisting of mortality, expense risk, financial accounting and
other expenses, for each period indicated. This ratio includes only those
expenses that result in direct reduction to unit value. Charges made
directly to Contractowner account through the redemption of units and
expenses of the respective Portfolio have been excluded. The summary may not
reflect the minimum and maximum contract charges offered by the Company as
Contractowners may not have selected all available and applicable contract
options. Due to the timing of the introduction of new products into the
Variable Account, contract charges and related unit values and total returns
may fall outside of the ranges presented in the financial highlights.
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT CONVERTIBLE SECURITIES
2018 Lowest contract charge 0.00% Class B $ 12.19 -- -- -- (4.24)%
Highest contract charge 0.60% Class B $119.95 -- -- -- (4.83)%
All contract charges -- 21 $ 1,204 3.16% --
2017 Lowest contract charge 0.00% Class B $ 12.73 -- -- -- 14.27%
Highest contract charge 0.60% Class B $126.04 -- -- -- 13.59%
All contract charges -- 6 $ 605 9.59% --
2016 Lowest contract charge 0.00% Class B(c) $ 11.14 -- -- -- 10.08%
Highest contract charge 0.60% Class B(c) $110.96 -- -- -- 9.68%
All contract charges -- -- $ 9 9.66% --
1290 VT DOUBLELINE DYNAMIC ALLOCATION
2018 Lowest contract charge 0.00% Class B $118.12 -- -- -- (4.12)%
Highest contract charge 0.90% Class B $112.24 -- -- -- (4.99)%
All contract charges -- 179 $10,754 1.55% --
2017 Lowest contract charge 0.00% Class B $123.19 -- -- -- 9.61%
Highest contract charge 0.90% Class B $118.13 -- -- -- 8.64%
All contract charges -- 258 $12,307 0.61% --
2016 Lowest contract charge 0.00% Class B $112.39 -- -- -- 8.61%
Highest contract charge 0.90% Class B $108.74 -- -- -- 7.63%
All contract charges -- 190 $ 9,492 1.68% --
2015 Lowest contract charge 0.00% Class B $103.48 -- -- -- (3.72)%
Highest contract charge 0.90% Class B $101.03 -- -- -- (4.60)%
All contract charges -- 134 $ 5,897 1.31% --
2014 Lowest contract charge 0.00% Class B $107.48 -- -- -- 2.42%
Highest contract charge 0.90% Class B $105.90 -- -- -- 1.50%
All contract charges -- 28 $ 2,538 2.43% --
1290 VT DOUBLELINE OPPORTUNISTIC BOND
2018 Lowest contract charge 0.00% Class B(d) $101.17 -- -- -- (0.94)%
Highest contract charge 0.60% Class B(d) $100.17 -- -- -- (1.53)%
All contract charges -- 13 $ 607 3.81% --
2017 Lowest contract charge 0.00% Class B(d) $102.13 -- -- -- 1.58%
Highest contract charge 0.60% Class B(d) $101.73 -- -- -- 1.20%
All contract charges -- 3 $ 200 3.42% --
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class A $165.68 -- -- -- (11.69)%
Highest contract charge 0.90% Class A $149.05 -- -- -- (12.49)%
All contract charges -- 28 $ 4,388 2.01% --
2017 Lowest contract charge 0.00% Class A $187.61 -- -- -- 15.84%
Highest contract charge 0.90% Class A $170.32 -- -- -- 14.80%
All contract charges -- 32 $ 5,633 1.70% --
2016 Lowest contract charge 0.00% Class A $161.95 -- -- -- 12.98%
Highest contract charge 0.90% Class A $148.36 -- -- -- 11.97%
All contract charges -- 31 $ 4,827 1.96% --
2015 Lowest contract charge 0.00% Class A $143.34 -- -- -- (1.70)%
Highest contract charge 0.90% Class A $132.50 -- -- -- (2.59)%
All contract charges -- 33 $ 4,517 1.55% --
2014 Lowest contract charge 0.00% Class A $145.82 -- -- -- 8.67%
Highest contract charge 0.90% Class A $136.02 -- -- -- 7.70%
All contract charges -- 37 $ 5,222 1.56% --
|
FSA-117
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class B $228.29 -- -- -- (11.69)%
Highest contract charge 0.60% Class B $152.60 -- -- -- (12.22)%
All contract charges -- 70 $14,898 2.01% --
2017 Lowest contract charge 0.00% Class B $258.51 -- -- -- 15.84%
Highest contract charge 0.60% Class B $173.85 -- -- -- 15.15%
All contract charges -- 71 $17,017 1.70% --
2016 Lowest contract charge 0.00% Class B $223.16 -- -- -- 12.99%
Highest contract charge 0.60% Class B $150.98 -- -- -- 12.30%
All contract charges -- 73 $15,213 1.96% --
2015 Lowest contract charge 0.00% Class B $197.51 -- -- -- (1.70)%
Highest contract charge 0.60% Class B $134.44 -- -- -- (2.29)%
All contract charges -- 79 $14,262 1.55% --
2014 Lowest contract charge 0.00% Class B $200.93 -- -- -- 8.67%
Highest contract charge 0.60% Class B $137.59 -- -- -- 8.02%
All contract charges -- 82 $15,156 1.56% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
Highest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
All contract charges -- 29 $ 712 1.48% --
2017 Lowest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
Highest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
All contract charges -- 44 $ 988 0.17% --
2016 Lowest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
Highest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
All contract charges -- 18 $ 746 0.01% --
2015 Lowest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
Highest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
All contract charges -- 21 $ 699 0.00% --
2014 Lowest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
Highest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
All contract charges -- 17 $ 633 0.00% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class B $181.95 -- -- -- (4.91)%
Highest contract charge 0.90% Class B $131.24 -- -- -- (5.77)%
All contract charges -- 91 $14,377 1.48% --
2017 Lowest contract charge 0.00% Class B $191.34 -- -- -- 6.18%
Highest contract charge 0.90% Class B $139.27 -- -- -- 5.23%
All contract charges -- 93 $15,203 0.17% --
2016 Lowest contract charge 0.00% Class B $180.20 -- -- -- 7.69%
Highest contract charge 0.90% Class B $132.35 -- -- -- 6.73%
All contract charges -- 92 $14,108 0.01% --
2015 Lowest contract charge 0.00% Class B $167.33 -- -- -- 2.62%
Highest contract charge 0.90% Class B $124.01 -- -- -- 1.70%
All contract charges -- 96 $13,717 0.00% --
2014 Lowest contract charge 0.00% Class B $163.06 -- -- -- 1.64%
Highest contract charge 0.90% Class B $121.94 -- -- -- 0.73%
All contract charges -- 96 $13,401 0.00% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
Highest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
All contract charges -- 265 $ 7,034 0.55% --
2017 Lowest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
Highest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
All contract charges -- 196 $ 6,619 0.62% --
|
FSA-118
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT GAMCO SMALL COMPANY VALUE (CONTINUED)
2016 Lowest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
Highest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
All contract charges -- 177 $ 6,106 0.51% --
2015 Lowest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
Highest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
All contract charges -- 156 $ 4,668 0.53% --
2014 Lowest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
Highest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
All contract charges -- 105 $ 4,528 0.28% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class B $371.93 -- -- -- (15.58)%
Highest contract charge 0.90% Class B $218.55 -- -- -- (16.34)%
All contract charges -- 511 $155,857 0.55% --
2017 Lowest contract charge 0.00% Class B $440.57 -- -- -- 16.10%
Highest contract charge 0.90% Class B $261.25 -- -- -- 15.05%
All contract charges -- 532 $191,106 0.62% --
2016 Lowest contract charge 0.00% Class B $379.49 -- -- -- 23.27%
Highest contract charge 0.90% Class B $227.07 -- -- -- 22.17%
All contract charges -- 542 $166,766 0.51% --
2015 Lowest contract charge 0.00% Class B $307.85 -- -- -- (5.70)%
Highest contract charge 0.90% Class B $185.87 -- -- -- (6.55)%
All contract charges -- 566 $139,280 0.53% --
2014 Lowest contract charge 0.00% Class B $326.46 -- -- -- 3.07%
Highest contract charge 0.90% Class B $198.90 -- -- -- 2.14%
All contract charges -- 591 $151,989 0.28% --
1290 VT SMARTBETA EQUITY
2018 Lowest contract charge 0.00% Class B $ 11.84 -- -- -- (6.11)%
Highest contract charge 0.60% Class B $116.52 -- -- -- (6.66)%
All contract charges -- 63 $ 1,273 1.63% --
2017 Lowest contract charge 0.00% Class B $ 12.61 -- -- -- 21.72%
Highest contract charge 0.60% Class B $124.83 -- -- -- 20.99%
All contract charges -- 21 $ 598 1.84% --
2016 Lowest contract charge 0.00% Class B(c) $ 10.36 -- -- -- 3.81%
Highest contract charge 0.60% Class B(c) $103.17 -- -- -- 3.41%
All contract charges -- 13 $ 181 2.62% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
Highest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
All contract charges -- 1 $ 273 0.98% --
2017 Lowest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
Highest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
All contract charges -- 1 $ 308 1.04% --
2016 Lowest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
Highest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
All contract charges -- 1 $ 201 1.28% --
2015 Lowest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
Highest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
All contract charges -- 1 $ 216 1.07% --
2014 Lowest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
Highest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
All contract charges -- 1 $ 177 0.84% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class B $205.36 -- -- -- (4.37)%
Highest contract charge 0.90% Class B $172.35 -- -- -- (5.23)%
All contract charges -- 12 $ 2,364 0.98% --
|
FSA-119
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT SOCIALLY RESPONSIBLE (CONTINUED)
2017 Lowest contract charge 0.00% Class B $214.75 -- -- -- 20.40%
Highest contract charge 0.90% Class B $181.87 -- -- -- 19.32%
All contract charges -- 16 $ 3,042 1.04% --
2016 Lowest contract charge 0.00% Class B $178.36 -- -- -- 9.96%
Highest contract charge 0.90% Class B $152.42 -- -- -- 8.96%
All contract charges -- 14 $ 2,297 1.28% --
2015 Lowest contract charge 0.00% Class B $162.21 -- -- -- 0.48%
Highest contract charge 0.90% Class B $139.88 -- -- -- (0.43)%
All contract charges -- 11 $ 1,624 1.07% --
2014 Lowest contract charge 0.00% Class B $161.44 -- -- -- 13.61%
Highest contract charge 0.80% Class B $142.67 -- -- -- 12.70%
All contract charges -- 9 $ 1,403 0.84% --
ALL ASSET GROWTH-ALT 20(E)
2018 Lowest contract charge 0.00% Class B $153.87 -- -- -- (7.56)%
Highest contract charge 0.90% Class B $142.24 -- -- -- (8.39)%
All contract charges -- 270 $29,859 1.97% --
2017 Lowest contract charge 0.00% Class B $166.45 -- -- -- 15.90%
Highest contract charge 0.90% Class B $155.27 -- -- -- 14.85%
All contract charges -- 251 $28,921 1.62% --
2016 Lowest contract charge 0.00% Class B $143.62 -- -- -- 9.57%
Highest contract charge 0.90% Class B $135.19 -- -- -- 8.58%
All contract charges -- 158 $19,692 1.36% --
2015 Lowest contract charge 0.00% Class B $131.08 -- -- -- (3.96)%
Highest contract charge 0.90% Class B $124.51 -- -- -- (4.82)%
All contract charges -- 136 $17,513 0.84% --
2014 Lowest contract charge 0.00% Class B $136.49 -- -- -- 2.39%
Highest contract charge 0.90% Class B $130.82 -- -- -- 1.47%
All contract charges -- 131 $17,621 1.53% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /GLOBAL
SMALL CAPITALIZATION FUND/SM /
2018 Lowest contract charge 0.00% Class 4 $130.88 -- -- -- (10.81)%
Highest contract charge 0.90% Class 4 $124.37 -- -- -- (11.61)%
All contract charges -- 115 $ 8,267 0.02% --
2017 Lowest contract charge 0.00% Class 4 $146.74 -- -- -- 25.62%
Highest contract charge 0.90% Class 4 $140.71 -- -- -- 24.50%
All contract charges -- 69 $ 7,356 0.38% --
2016 Lowest contract charge 0.00% Class 4 $116.81 -- -- -- 1.85%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.93%
All contract charges -- 47 $ 4,107 0.11% --
2015 Lowest contract charge 0.00% Class 4 $114.69 -- -- -- (0.02)%
Highest contract charge 0.90% Class 4 $111.98 -- -- -- (0.92)%
All contract charges -- 43 $ 3,590 0.00% --
2014 Lowest contract charge 0.00% Class 4 $114.71 -- -- -- 1.88%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.96%
All contract charges -- 25 $ 1,829 0.08% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /
2018 Lowest contract charge 0.00% Class 4 $110.32 -- -- -- (14.25)%
Highest contract charge 0.90% Class 4 $104.83 -- -- -- (15.03)%
All contract charges -- 404 $19,113 0.82% --
2017 Lowest contract charge 0.00% Class 4 $128.66 -- -- -- 29.06%
Highest contract charge 0.90% Class 4 $123.37 -- -- -- 27.90%
All contract charges -- 222 $12,711 0.87% --
2016 Lowest contract charge 0.00% Class 4 $ 99.69 -- -- -- 5.05%
Highest contract charge 0.90% Class 4 $ 96.46 -- -- -- 4.10%
All contract charges -- 172 $ 7,858 0.69% --
|
FSA-120
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /(CONTINUED)
2015 Lowest contract charge 0.00% Class 4 $ 94.90 -- -- -- (3.38)%
Highest contract charge 0.90% Class 4 $ 92.66 -- -- -- (4.24)%
All contract charges -- 139 $ 6,032 0.57% --
2014 Lowest contract charge 0.00% Class 4 $ 98.22 -- -- -- (8.13)%
Highest contract charge 0.90% Class 4 $ 96.76 -- -- -- (8.97)%
All contract charges -- 88 $ 3,904 1.51% --
AXA 400 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $191.95 -- -- -- (12.27)%
Highest contract charge 0.90% Class B $177.44 -- -- -- (13.06)%
All contract charges -- 23 $ 4,405 0.93% --
2017 Lowest contract charge 0.00% Class B $218.79 -- -- -- 15.23%
Highest contract charge 0.90% Class B $204.10 -- -- -- 14.19%
All contract charges -- 25 $ 5,413 0.80% --
2016 Lowest contract charge 0.00% Class B $189.88 -- -- -- 19.68%
Highest contract charge 0.90% Class B $178.74 -- -- -- 18.61%
All contract charges -- 23 $ 4,246 0.87% --
2015 Lowest contract charge 0.00% Class B $158.65 -- -- -- (3.11)%
Highest contract charge 0.90% Class B $150.69 -- -- -- (3.98)%
All contract charges -- 20 $ 3,160 0.54% --
2014 Lowest contract charge 0.00% Class B $163.75 -- -- -- 8.80%
Highest contract charge 0.90% Class B $156.94 -- -- -- 7.82%
All contract charges -- 19 $ 3,065 0.39% --
AXA 500 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.17 -- -- -- (6.06)%
Highest contract charge 0.90% Class B $197.98 -- -- -- (6.91)%
All contract charges -- 49 $10,225 1.16% --
2017 Lowest contract charge 0.00% Class B $227.98 -- -- -- 20.75%
Highest contract charge 0.90% Class B $212.68 -- -- -- 19.67%
All contract charges -- 43 $ 9,743 1.24% --
2016 Lowest contract charge 0.00% Class B $188.80 -- -- -- 11.03%
Highest contract charge 0.90% Class B $177.72 -- -- -- 10.03%
All contract charges -- 37 $ 6,887 1.27% --
2015 Lowest contract charge 0.00% Class B $170.05 -- -- -- 0.37%
Highest contract charge 0.90% Class B $161.52 -- -- -- (0.54)%
All contract charges -- 34 $ 5,680 0.91% --
2014 Lowest contract charge 0.00% Class B $169.43 -- -- -- 12.59%
Highest contract charge 0.90% Class B $162.40 -- -- -- 11.58%
All contract charges -- 33 $ 5,576 0.80% --
AXA 2000 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $179.09 -- -- -- (11.92)%
Highest contract charge 0.90% Class B $165.56 -- -- -- (12.71)%
All contract charges -- 24 $ 4,137 0.77% --
2017 Lowest contract charge 0.00% Class B $203.32 -- -- -- 13.85%
Highest contract charge 0.90% Class B $189.67 -- -- -- 12.84%
All contract charges -- 23 $ 4,480 0.78% --
2016 Lowest contract charge 0.00% Class B $178.58 -- -- -- 20.53%
Highest contract charge 0.90% Class B $168.09 -- -- -- 19.44%
All contract charges -- 18 $ 3,289 0.82% --
2015 Lowest contract charge 0.00% Class B $148.16 -- -- -- (5.10)%
Highest contract charge 0.90% Class B $140.73 -- -- -- (5.95)%
All contract charges -- 15 $ 2,284 0.39% --
2014 Lowest contract charge 0.00% Class B $156.13 -- -- -- 4.06%
Highest contract charge 0.90% Class B $149.64 -- -- -- 3.11%
All contract charges -- 17 $ 2,546 0.16% --
|
FSA-121
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $240.35 -- -- -- (8.72)%
Highest contract charge 0.90% Class A $209.40 -- -- -- (9.54)%
All contract charges -- 310 $56,672 1.56% --
2017 Lowest contract charge 0.00% Class A $263.30 -- -- -- 19.10%
Highest contract charge 0.90% Class A $231.49 -- -- -- 18.03%
All contract charges -- 302 $63,917 1.51% --
2016 Lowest contract charge 0.00% Class A $221.08 -- -- -- 8.79%
Highest contract charge 0.90% Class A $196.13 -- -- -- 7.81%
All contract charges -- 306 $56,824 0.94% --
2015 Lowest contract charge 0.00% Class A $203.22 -- -- -- (1.75)%
Highest contract charge 0.90% Class A $181.92 -- -- -- (2.64)%
All contract charges -- 344 $57,423 0.95% --
2014 Lowest contract charge 0.00% Class A $206.85 -- -- -- 4.72%
Highest contract charge 0.90% Class A $186.85 -- -- -- 3.78%
All contract charges -- 344 $63,147 1.55% --
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $235.46 -- -- -- (8.72)%
Highest contract charge 0.60% Class B $214.81 -- -- -- (9.27)%
All contract charges -- 340 $79,240 1.56% --
2017 Lowest contract charge 0.00% Class B $257.94 -- -- -- 19.10%
Highest contract charge 0.60% Class B $236.75 -- -- -- 18.39%
All contract charges -- 362 $92,369 1.51% --
2016 Lowest contract charge 0.00% Class B $216.58 -- -- -- 8.78%
Highest contract charge 0.60% Class B $199.98 -- -- -- 8.13%
All contract charges -- 373 $79,996 0.94% --
2015 Lowest contract charge 0.00% Class B $199.09 -- -- -- (1.75)%
Highest contract charge 0.60% Class B $184.94 -- -- -- (2.34)%
All contract charges -- 392 $77,349 0.95% --
2014 Lowest contract charge 0.00% Class B $202.64 -- -- -- 4.72%
Highest contract charge 0.60% Class B $189.38 -- -- -- 4.09%
All contract charges -- 396 $79,584 1.55% --
AXA BALANCED STRATEGY
2018 Lowest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
Highest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
All contract charges -- 246 $38,340 1.27% --
2017 Lowest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
Highest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
All contract charges -- 225 $36,558 1.43% --
2016 Lowest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
Highest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
All contract charges -- 188 $27,793 0.89% --
2015 Lowest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
Highest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
All contract charges -- 173 $24,207 1.09% --
2014 Lowest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
Highest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
All contract charges -- 141 $19,802 1.21% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $162.27 -- -- -- (1.57)%
Highest contract charge 0.90% Class A $141.38 -- -- -- (2.45)%
All contract charges -- 256 $19,839 1.52% --
2017 Lowest contract charge 0.00% Class A $164.85 -- -- -- 4.95%
Highest contract charge 0.90% Class A $144.93 -- -- -- 4.00%
All contract charges -- 253 $21,414 1.07% --
|
FSA-122
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE ALLOCATION (CONTINUED)
2016 Lowest contract charge 0.00% Class A $157.07 -- -- -- 2.92%
Highest contract charge 0.90% Class A $139.35 -- -- -- 2.01%
All contract charges -- 270 $22,880 0.94% --
2015 Lowest contract charge 0.00% Class A $152.61 -- -- -- (0.24)%
Highest contract charge 0.90% Class A $136.61 -- -- -- (1.14)%
All contract charges -- 284 $24,201 0.79% --
2014 Lowest contract charge 0.00% Class A $152.98 -- -- -- 2.62%
Highest contract charge 0.90% Class A $138.19 -- -- -- 1.69%
All contract charges -- 288 $25,804 0.83% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $158.96 -- -- -- (1.56)%
Highest contract charge 0.60% Class B $145.02 -- -- -- (2.16)%
All contract charges -- 47 $ 7,355 1.52% --
2017 Lowest contract charge 0.00% Class B $161.48 -- -- -- 4.95%
Highest contract charge 0.60% Class B $148.22 -- -- -- 4.32%
All contract charges -- 46 $ 7,209 1.07% --
2016 Lowest contract charge 0.00% Class B $153.87 -- -- -- 2.92%
Highest contract charge 0.60% Class B $142.08 -- -- -- 2.31%
All contract charges -- 58 $ 8,706 0.94% --
2015 Lowest contract charge 0.00% Class B $149.50 -- -- -- (0.24)%
Highest contract charge 0.60% Class B $138.87 -- -- -- (0.84)%
All contract charges -- 61 $ 8,855 0.79% --
2014 Lowest contract charge 0.00% Class B $149.86 -- -- -- 2.62%
Highest contract charge 0.60% Class B $140.05 -- -- -- 2.00%
All contract charges -- 71 $10,374 0.83% --
AXA CONSERVATIVE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
Highest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
All contract charges -- 48 $ 7,082 1.21% --
2017 Lowest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
Highest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
All contract charges -- 49 $ 7,439 1.29% --
2016 Lowest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
Highest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
All contract charges -- 44 $ 6,162 0.90% --
2015 Lowest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
Highest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
All contract charges -- 41 $ 5,539 0.95% --
2014 Lowest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
Highest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
All contract charges -- 40 $ 5,395 1.11% --
AXA CONSERVATIVE STRATEGY
2018 Lowest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
Highest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
All contract charges -- 23 $ 2,969 1.31% --
2017 Lowest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
Highest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
All contract charges -- 20 $ 2,656 1.02% --
2016 Lowest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
Highest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
All contract charges -- 22 $ 2,805 0.85% --
2015 Lowest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
Highest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
All contract charges -- 20 $ 2,427 0.94% --
2014 Lowest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
Highest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
All contract charges -- 16 $ 1,930 0.86% --
|
FSA-123
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $181.08 -- -- -- (3.64)%
Highest contract charge 0.90% Class A $157.76 -- -- -- (4.52)%
All contract charges -- 209 $ 16,289 1.47% --
2017 Lowest contract charge 0.00% Class A $187.93 -- -- -- 8.83%
Highest contract charge 0.90% Class A $165.22 -- -- -- 7.84%
All contract charges -- 174 $ 17,822 1.21% --
2016 Lowest contract charge 0.00% Class A $172.69 -- -- -- 4.73%
Highest contract charge 0.90% Class A $153.21 -- -- -- 3.79%
All contract charges -- 148 $ 17,374 0.90% --
2015 Lowest contract charge 0.00% Class A $164.89 -- -- -- (0.66)%
Highest contract charge 0.90% Class A $147.61 -- -- -- (1.55)%
All contract charges -- 164 $ 17,659 0.82% --
2014 Lowest contract charge 0.00% Class A $165.98 -- -- -- 3.16%
Highest contract charge 0.90% Class A $149.93 -- -- -- 2.23%
All contract charges -- 179 $ 19,858 0.99% --
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $177.40 -- -- -- (3.64)%
Highest contract charge 0.60% Class B $161.84 -- -- -- (4.23)%
All contract charges -- 77 $ 13,374 1.47% --
2017 Lowest contract charge 0.00% Class B $184.11 -- -- -- 8.82%
Highest contract charge 0.60% Class B $168.98 -- -- -- 8.17%
All contract charges -- 82 $ 14,766 1.21% --
2016 Lowest contract charge 0.00% Class B $169.18 -- -- -- 4.73%
Highest contract charge 0.60% Class B $156.22 -- -- -- 4.11%
All contract charges -- 87 $ 14,529 0.90% --
2015 Lowest contract charge 0.00% Class B $161.54 -- -- -- (0.65)%
Highest contract charge 0.60% Class B $150.06 -- -- -- (1.24)%
All contract charges -- 90 $ 14,346 0.82% --
2014 Lowest contract charge 0.00% Class B $162.60 -- -- -- 3.16%
Highest contract charge 0.60% Class B $151.95 -- -- -- 2.54%
All contract charges -- 94 $ 15,106 0.99% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
Highest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
All contract charges -- 77 $ 26,261 1.02% --
2017 Lowest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
Highest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
All contract charges -- 67 $ 31,741 1.07% --
2016 Lowest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
Highest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
All contract charges -- 68 $ 27,405 0.91% --
2015 Lowest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
Highest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
All contract charges -- 74 $ 28,446 0.88% --
2014 Lowest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
Highest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
All contract charges -- 106 $ 31,716 0.95% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $309.60 -- -- -- (12.16)%
Highest contract charge 0.90% Class B $255.21 -- -- -- (12.96)%
All contract charges -- 329 $ 93,820 1.02% --
2017 Lowest contract charge 0.00% Class B $352.45 -- -- -- 26.08%
Highest contract charge 0.90% Class B $293.20 -- -- -- 24.95%
All contract charges -- 359 $116,782 1.07% --
|
FSA-124
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA GLOBAL EQUITY MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $279.54 -- -- -- 4.48%
Highest contract charge 0.90% Class B $234.65 -- -- -- 3.54%
All contract charges -- 398 $102,881 0.91% --
2015 Lowest contract charge 0.00% Class B $267.56 -- -- -- (1.73)%
Highest contract charge 0.90% Class B $226.63 -- -- -- (2.61)%
All contract charges -- 441 $110,066 0.88% --
2014 Lowest contract charge 0.00% Class B $272.26 -- -- -- 1.68%
Highest contract charge 0.90% Class B $232.70 -- -- -- 0.77%
All contract charges -- 478 $121,576 0.95% --
AXA GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
Highest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
All contract charges -- 332 $ 58,504 1.22% --
2017 Lowest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
Highest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
All contract charges -- 330 $ 62,041 1.57% --
2016 Lowest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
Highest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
All contract charges -- 304 $ 50,167 0.98% --
2015 Lowest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
Highest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
All contract charges -- 279 $ 42,615 1.25% --
2014 Lowest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
Highest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
All contract charges -- 223 $ 34,422 1.64% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $236.86 -- -- -- (14.89)%
Highest contract charge 0.60% Class A $168.13 -- -- -- (15.40)%
All contract charges -- 53 $ 12,380 1.72% --
2017 Lowest contract charge 0.00% Class A $278.29 -- -- -- 26.30%
Highest contract charge 0.60% Class A $198.73 -- -- -- 25.54%
All contract charges -- 56 $ 15,408 1.64% --
2016 Lowest contract charge 0.00% Class A $220.34 -- -- -- 0.22%
Highest contract charge 0.60% Class A $158.30 -- -- -- (0.37)%
All contract charges -- 61 $ 13,351 0.29% --
2015 Lowest contract charge 0.00% Class A $219.85 -- -- -- (4.35)%
Highest contract charge 0.60% Class A $158.89 -- -- -- (4.92)%
All contract charges -- 66 $ 14,331 0.06% --
2014 Lowest contract charge 0.00% Class A $229.84 -- -- -- (6.24)%
Highest contract charge 0.60% Class A $167.11 -- -- -- (6.80)%
All contract charges -- 71 $ 16,150 1.75% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $153.51 -- -- -- (14.89)%
Highest contract charge 0.90% Class B $128.46 -- -- -- (15.66)%
All contract charges -- 271 $ 38,842 1.72% --
2017 Lowest contract charge 0.00% Class B $180.36 -- -- -- 26.31%
Highest contract charge 0.90% Class B $152.31 -- -- -- 25.17%
All contract charges -- 282 $ 47,837 1.64% --
2016 Lowest contract charge 0.00% Class B $142.79 -- -- -- 0.21%
Highest contract charge 0.90% Class B $121.68 -- -- -- (0.69)%
All contract charges -- 336 $ 45,006 0.29% --
2015 Lowest contract charge 0.00% Class B $142.49 -- -- -- (4.34)%
Highest contract charge 0.90% Class B $122.52 -- -- -- (5.21)%
All contract charges -- 345 $ 46,054 0.06% --
2014 Lowest contract charge 0.00% Class B $148.95 -- -- -- (6.24)%
Highest contract charge 0.90% Class B $129.25 -- -- -- (7.08)%
All contract charges -- 381 $ 53,327 1.75% --
|
FSA-125
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA INTERNATIONAL MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $120.70 -- -- -- (14.45)%
Highest contract charge 0.90% Class B $111.58 -- -- -- (15.22)%
All contract charges -- 29 $ 3,515 1.95% --
2017 Lowest contract charge 0.00% Class B $141.09 -- -- -- 24.25%
Highest contract charge 0.90% Class B $131.61 -- -- -- 23.13%
All contract charges -- 25 $ 3,558 2.29% --
2016 Lowest contract charge 0.00% Class B $113.55 -- -- -- (0.12)%
Highest contract charge 0.90% Class B $106.89 -- -- -- (1.01)%
All contract charges -- 21 $ 2,386 1.26% --
2015 Lowest contract charge 0.00% Class B $113.69 -- -- -- (2.40)%
Highest contract charge 0.90% Class B $107.98 -- -- -- (3.29)%
All contract charges -- 17 $ 1,908 0.04% --
2014 Lowest contract charge 0.00% Class B $116.49 -- -- -- (6.44)%
Highest contract charge 0.90% Class B $111.65 -- -- -- (7.28)%
All contract charges -- 15 $ 1,627 0.79% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $223.17 -- -- -- (16.49)%
Highest contract charge 0.60% Class A $156.54 -- -- -- (16.99)%
All contract charges -- 99 $14,835 1.72% --
2017 Lowest contract charge 0.00% Class A $267.24 -- -- -- 23.37%
Highest contract charge 0.60% Class A $188.59 -- -- -- 22.64%
All contract charges -- 102 $18,250 1.90% --
2016 Lowest contract charge 0.00% Class A $216.61 -- -- -- 0.74%
Highest contract charge 0.60% Class A $153.78 -- -- -- 0.14%
All contract charges -- 102 $15,640 0.47% --
2015 Lowest contract charge 0.00% Class A $215.01 -- -- -- (3.16)%
Highest contract charge 0.60% Class A $153.56 -- -- -- (3.74)%
All contract charges -- 105 $16,190 0.10% --
2014 Lowest contract charge 0.00% Class A $222.03 -- -- -- (7.18)%
Highest contract charge 0.60% Class A $159.53 -- -- -- (7.74)%
All contract charges -- 108 $17,611 1.58% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $163.14 -- -- -- (16.49)%
Highest contract charge 0.90% Class B $150.30 -- -- -- (17.24)%
All contract charges -- 325 $52,099 1.72% --
2017 Lowest contract charge 0.00% Class B $195.36 -- -- -- 23.37%
Highest contract charge 0.90% Class B $181.62 -- -- -- 22.27%
All contract charges -- 348 $66,766 1.90% --
2016 Lowest contract charge 0.00% Class B $158.35 -- -- -- 0.74%
Highest contract charge 0.90% Class B $148.54 -- -- -- (0.16)%
All contract charges -- 377 $59,108 0.47% --
2015 Lowest contract charge 0.00% Class B $157.18 -- -- -- (3.16)%
Highest contract charge 0.90% Class B $148.78 -- -- -- (4.04)%
All contract charges -- 399 $62,376 0.10% --
2014 Lowest contract charge 0.00% Class B $162.31 -- -- -- (7.18)%
Highest contract charge 0.90% Class B $155.04 -- -- -- (8.01)%
All contract charges -- 428 $69,318 1.58% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $333.18 -- -- -- (6.42)%
Highest contract charge 0.60% Class A $229.45 -- -- -- (6.99)%
All contract charges -- 25 $ 4,358 1.04% --
2017 Lowest contract charge 0.00% Class A $356.05 -- -- -- 21.95%
Highest contract charge 0.60% Class A $246.69 -- -- -- 21.22%
All contract charges -- 22 $ 4,838 1.00% --
|
FSA-126
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP CORE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $291.96 -- -- -- 9.83%
Highest contract charge 0.60% Class A $203.50 -- -- -- 9.17%
All contract charges -- 20 $ 4,208 1.11% --
2015 Lowest contract charge 0.00% Class A $265.83 -- -- -- 0.37%
Highest contract charge 0.60% Class A $186.41 -- -- -- (0.23)%
All contract charges -- 19 $ 4,306 0.91% --
2014 Lowest contract charge 0.00% Class A $264.85 -- -- -- 11.62%
Highest contract charge 0.60% Class A $186.84 -- -- -- 10.95%
All contract charges -- 22 $ 5,334 1.12% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.54 -- -- -- (6.42)%
Highest contract charge 0.90% Class B $179.74 -- -- -- (7.27)%
All contract charges -- 113 $ 23,359 1.04% --
2017 Lowest contract charge 0.00% Class B $229.27 -- -- -- 21.95%
Highest contract charge 0.90% Class B $193.83 -- -- -- 20.86%
All contract charges -- 119 $ 26,273 1.00% --
2016 Lowest contract charge 0.00% Class B $188.00 -- -- -- 9.83%
Highest contract charge 0.90% Class B $160.38 -- -- -- 8.84%
All contract charges -- 127 $ 22,958 1.11% --
2015 Lowest contract charge 0.00% Class B $171.18 -- -- -- 0.38%
Highest contract charge 0.90% Class B $147.35 -- -- -- (0.53)%
All contract charges -- 133 $ 21,865 0.91% --
2014 Lowest contract charge 0.00% Class B $170.54 -- -- -- 11.62%
Highest contract charge 0.90% Class B $148.14 -- -- -- 10.62%
All contract charges -- 143 $ 23,572 1.12% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $450.72 -- -- -- (2.97)%
Highest contract charge 0.60% Class A $275.09 -- -- -- (3.56)%
All contract charges -- 113 $ 44,316 0.48% --
2017 Lowest contract charge 0.00% Class A $464.53 -- -- -- 29.22%
Highest contract charge 0.60% Class A $285.25 -- -- -- 28.44%
All contract charges -- 120 $ 49,729 0.49% --
2016 Lowest contract charge 0.00% Class A $359.50 -- -- -- 5.51%
Highest contract charge 0.60% Class A $222.08 -- -- -- 4.88%
All contract charges -- 128 $ 41,088 0.57% --
2015 Lowest contract charge 0.00% Class A $340.73 -- -- -- 4.04%
Highest contract charge 0.60% Class A $211.75 -- -- -- 3.41%
All contract charges -- 136 $ 41,909 0.28% --
2014 Lowest contract charge 0.00% Class A $327.51 -- -- -- 11.08%
Highest contract charge 0.60% Class A $204.77 -- -- -- 10.42%
All contract charges -- 149 $ 45,164 0.24% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $430.17 -- -- -- (2.98)%
Highest contract charge 0.90% Class B $353.64 -- -- -- (3.85)%
All contract charges -- 536 $199,280 0.48% --
2017 Lowest contract charge 0.00% Class B $443.36 -- -- -- 29.21%
Highest contract charge 0.90% Class B $367.81 -- -- -- 28.05%
All contract charges -- 585 $225,714 0.49% --
2016 Lowest contract charge 0.00% Class B $343.12 -- -- -- 5.51%
Highest contract charge 0.90% Class B $287.23 -- -- -- 4.57%
All contract charges -- 637 $191,238 0.57% --
2015 Lowest contract charge 0.00% Class B $325.20 -- -- -- 4.03%
Highest contract charge 0.90% Class B $274.69 -- -- -- 3.10%
All contract charges -- 695 $198,684 0.28% --
2014 Lowest contract charge 0.00% Class B $312.59 -- -- -- 11.09%
Highest contract charge 0.90% Class B $266.44 -- -- -- 10.09%
All contract charges -- 759 $209,579 0.24% --
|
FSA-127
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $287.53 -- -- -- (9.92)%
Highest contract charge 0.90% Class A $210.45 -- -- -- (10.74)%
All contract charges -- 996 $230,158 2.46% --
2017 Lowest contract charge 0.00% Class A $319.21 -- -- -- 13.86%
Highest contract charge 0.90% Class A $235.77 -- -- -- 12.84%
All contract charges -- 1,078 $278,428 1.52% --
2016 Lowest contract charge 0.00% Class A $280.36 -- -- -- 15.32%
Highest contract charge 0.90% Class A $208.95 -- -- -- 14.29%
All contract charges -- 1,164 $265,424 1.68% --
2015 Lowest contract charge 0.00% Class A $243.12 -- -- -- (4.02)%
Highest contract charge 0.90% Class A $182.83 -- -- -- (4.88)%
All contract charges -- 1,280 $254,701 1.58% --
2014 Lowest contract charge 0.00% Class A $253.29 -- -- -- 12.23%
Highest contract charge 0.90% Class A $192.21 -- -- -- 11.22%
All contract charges -- 1,383 $288,312 1.39% --
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.35 -- -- -- (9.93)%
Highest contract charge 0.90% Class B $207.72 -- -- -- (10.74)%
All contract charges -- 517 $113,399 2.46% --
2017 Lowest contract charge 0.00% Class B $237.97 -- -- -- 13.86%
Highest contract charge 0.90% Class B $232.71 -- -- -- 12.83%
All contract charges -- 559 $136,908 1.52% --
2016 Lowest contract charge 0.00% Class B $209.01 -- -- -- 15.32%
Highest contract charge 0.90% Class B $206.24 -- -- -- 14.29%
All contract charges -- 597 $129,323 1.68% --
2015 Lowest contract charge 0.00% Class B $181.24 -- -- -- (4.01)%
Highest contract charge 0.90% Class B $180.46 -- -- -- (4.88)%
All contract charges -- 653 $123,278 1.58% --
2014 Lowest contract charge 0.00% Class B $188.82 -- -- -- 12.23%
Highest contract charge 0.90% Class B $189.72 -- -- -- 11.22%
All contract charges -- 695 $137,376 1.39% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $374.40 -- -- -- (13.30)%
Highest contract charge 0.90% Class A $286.51 -- -- -- (14.08)%
All contract charges -- 510 $159,047 1.20% --
2017 Lowest contract charge 0.00% Class A $431.81 -- -- -- 12.32%
Highest contract charge 0.90% Class A $333.46 -- -- -- 11.31%
All contract charges -- 563 $201,795 1.04% --
2016 Lowest contract charge 0.00% Class A $384.44 -- -- -- 17.67%
Highest contract charge 0.90% Class A $299.57 -- -- -- 16.62%
All contract charges -- 611 $194,982 1.22% --
2015 Lowest contract charge 0.00% Class A $326.71 -- -- -- (3.54)%
Highest contract charge 0.90% Class A $256.88 -- -- -- (4.41)%
All contract charges -- 668 $183,118 0.75% --
2014 Lowest contract charge 0.00% Class A $338.70 -- -- -- 10.87%
Highest contract charge 0.90% Class A $268.73 -- -- -- 9.87%
All contract charges -- 728 $208,857 0.58% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
Highest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
All contract charges -- 35 $ 12,065 1.20% --
2017 Lowest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
Highest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
All contract charges -- 36 $ 14,423 1.04% --
|
FSA-128
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MID CAP VALUE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
Highest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
All contract charges -- 38 $ 13,464 1.22% --
2015 Lowest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
Highest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
All contract charges -- 39 $ 11,903 0.75% --
2014 Lowest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
Highest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
All contract charges -- 41 $ 12,879 0.58% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class A $393.57 -- -- -- (4.77)%
Highest contract charge 0.90% Class A $335.95 -- -- -- (5.63)%
All contract charges -- 1,323 $648,238 1.53% --
2017 Lowest contract charge 0.00% Class A $413.27 -- -- -- 11.05%
Highest contract charge 0.90% Class A $355.99 -- -- -- 10.05%
All contract charges -- 1,321 $738,975 1.22% --
2016 Lowest contract charge 0.00% Class A $372.16 -- -- -- 5.36%
Highest contract charge 0.90% Class A $323.48 -- -- -- 4.41%
All contract charges -- 1,344 $725,302 0.88% --
2015 Lowest contract charge 0.00% Class A $353.24 -- -- -- (0.88)%
Highest contract charge 0.90% Class A $309.81 -- -- -- (1.78)%
All contract charges -- 1,412 $757,108 0.81% --
2014 Lowest contract charge 0.00% Class A $356.38 -- -- -- 3.03%
Highest contract charge 0.90% Class A $315.41 -- -- -- 2.10%
All contract charges -- 1,531 $839,961 1.07% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class B $193.78 -- -- -- (4.77)%
Highest contract charge 0.60% Class B $175.85 -- -- -- (5.35)%
All contract charges -- 809 $151,465 1.53% --
2017 Lowest contract charge 0.00% Class B $203.48 -- -- -- 11.05%
Highest contract charge 0.60% Class B $185.78 -- -- -- 10.38%
All contract charges -- 790 $155,114 1.22% --
2016 Lowest contract charge 0.00% Class B $183.24 -- -- -- 5.36%
Highest contract charge 0.60% Class B $168.31 -- -- -- 4.73%
All contract charges -- 837 $148,117 0.88% --
2015 Lowest contract charge 0.00% Class B $173.92 -- -- -- (0.88)%
Highest contract charge 0.60% Class B $160.71 -- -- -- (1.48)%
All contract charges -- 890 $149,774 0.81% --
2014 Lowest contract charge 0.00% Class B $175.47 -- -- -- 3.03%
Highest contract charge 0.60% Class B $163.12 -- -- -- 2.41%
All contract charges -- 929 $157,713 1.07% --
AXA MODERATE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
Highest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
All contract charges -- 643 $106,743 1.23% --
2017 Lowest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
Highest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
All contract charges -- 626 $109,617 1.41% --
2016 Lowest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
Highest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
All contract charges -- 617 $ 96,610 0.95% --
2015 Lowest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
Highest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
All contract charges -- 565 $ 82,588 1.12% --
2014 Lowest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
Highest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
All contract charges -- 492 $ 72,534 1.31% --
|
FSA-129
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $222.44 -- -- -- (6.84)%
Highest contract charge 0.90% Class A $193.79 -- -- -- (7.68)%
All contract charges -- 1,190 $158,878 1.57% --
2017 Lowest contract charge 0.00% Class A $238.76 -- -- -- 14.89%
Highest contract charge 0.90% Class A $209.91 -- -- -- 13.86%
All contract charges -- 1,176 $189,691 1.39% --
2016 Lowest contract charge 0.00% Class A $207.81 -- -- -- 7.27%
Highest contract charge 0.90% Class A $184.35 -- -- -- 6.30%
All contract charges -- 1,173 $179,974 0.90% --
2015 Lowest contract charge 0.00% Class A $193.73 -- -- -- (1.29)%
Highest contract charge 0.90% Class A $173.42 -- -- -- (2.18)%
All contract charges -- 1,171 $181,984 0.89% --
2014 Lowest contract charge 0.00% Class A $196.26 -- -- -- 3.77%
Highest contract charge 0.90% Class A $177.28 -- -- -- 2.84%
All contract charges -- 1,235 $203,339 1.31% --
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $217.90 -- -- -- (6.84)%
Highest contract charge 0.60% Class B $198.79 -- -- -- (7.40)%
All contract charges -- 1,084 $233,271 1.57% --
2017 Lowest contract charge 0.00% Class B $233.89 -- -- -- 14.89%
Highest contract charge 0.60% Class B $214.67 -- -- -- 14.20%
All contract charges -- 1,158 $267,770 1.39% --
2016 Lowest contract charge 0.00% Class B $203.57 -- -- -- 7.27%
Highest contract charge 0.60% Class B $187.97 -- -- -- 6.63%
All contract charges -- 1,198 $241,006 0.90% --
2015 Lowest contract charge 0.00% Class B $189.77 -- -- -- (1.30)%
Highest contract charge 0.60% Class B $176.29 -- -- -- (1.88)%
All contract charges -- 1,228 $230,412 0.89% --
2014 Lowest contract charge 0.00% Class B $192.26 -- -- -- 3.77%
Highest contract charge 0.60% Class B $179.67 -- -- -- 3.15%
All contract charges -- 1,245 $236,907 1.31% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class A $508.91 -- -- -- (7.88)%
Highest contract charge 0.90% Class A $418.36 -- -- -- (8.71)%
All contract charges -- 394 $123,432 0.12% --
2017 Lowest contract charge 0.00% Class A $552.43 -- -- -- 22.67%
Highest contract charge 0.90% Class A $458.28 -- -- -- 21.57%
All contract charges -- 358 $142,467 0.27% --
2016 Lowest contract charge 0.00% Class A $450.34 -- -- -- 12.58%
Highest contract charge 0.90% Class A $376.97 -- -- -- 11.57%
All contract charges -- 377 $130,425 0.36% --
2015 Lowest contract charge 0.00% Class A $400.02 -- -- -- (2.91)%
Highest contract charge 0.90% Class A $337.88 -- -- -- (3.78)%
All contract charges -- 399 $126,365 0.05% --
2014 Lowest contract charge 0.00% Class A $412.00 -- -- -- 3.57%
Highest contract charge 0.90% Class A $351.16 -- -- -- 2.64%
All contract charges -- 422 $144,210 0.06% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $417.73 -- -- -- (7.88)%
Highest contract charge 0.60% Class B $331.02 -- -- -- (8.43)%
All contract charges -- 182 $ 62,991 0.12% --
2017 Lowest contract charge 0.00% Class B $453.45 -- -- -- 22.67%
Highest contract charge 0.60% Class B $361.51 -- -- -- 21.93%
All contract charges -- 189 $ 71,440 0.27% --
|
FSA-130
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/AB SMALL CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $369.65 -- -- -- 12.58%
Highest contract charge 0.60% Class B $296.48 -- -- -- 11.90%
All contract charges -- 204 $62,757 0.36% --
2015 Lowest contract charge 0.00% Class B $328.35 -- -- -- (2.91)%
Highest contract charge 0.60% Class B $264.94 -- -- -- (3.49)%
All contract charges -- 221 $60,376 0.05% --
2014 Lowest contract charge 0.00% Class B $338.19 -- -- -- 3.57%
Highest contract charge 0.60% Class B $274.53 -- -- -- 2.96%
All contract charges -- 236 $66,544 0.06% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
Highest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
All contract charges -- 96 $11,281 0.17% --
2017 Lowest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
Highest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
All contract charges -- 99 $12,081 0.08% --
2016 Lowest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
Highest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
All contract charges -- 120 $10,833 0.00% --
2015 Lowest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
Highest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
All contract charges -- 124 $11,612 0.00% --
2014 Lowest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
Highest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
All contract charges -- 121 $12,253 0.00% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class B $269.42 -- -- -- (0.35)%
Highest contract charge 0.90% Class B $226.20 -- -- -- (1.25)%
All contract charges -- 263 $65,342 0.17% --
2017 Lowest contract charge 0.00% Class B $270.36 -- -- -- 25.59%
Highest contract charge 0.90% Class B $229.06 -- -- -- 24.46%
All contract charges -- 276 $69,313 0.08% --
2016 Lowest contract charge 0.00% Class B $215.27 -- -- -- 0.88%
Highest contract charge 0.90% Class B $184.04 -- -- -- (0.02)%
All contract charges -- 310 $62,282 0.00% --
2015 Lowest contract charge 0.00% Class B $213.39 -- -- -- 1.27%
Highest contract charge 0.90% Class B $184.08 -- -- -- 0.35%
All contract charges -- 364 $72,486 0.00% --
2014 Lowest contract charge 0.00% Class B $210.71 -- -- -- 3.80%
Highest contract charge 0.90% Class B $183.43 -- -- -- 2.87%
All contract charges -- 419 $82,054 0.00% --
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class A $198.06 -- -- -- (1.79)%
Highest contract charge 0.90% Class A $178.18 -- -- -- (2.68)%
All contract charges -- 96 $18,250 0.00% --
2017 Lowest contract charge 0.00% Class A $201.67 -- -- -- 27.90%
Highest contract charge 0.90% Class A $183.08 -- -- -- 26.75%
All contract charges -- 109 $20,920 0.00% --
2016 Lowest contract charge 0.00% Class A $157.68 -- -- -- (4.33)%
Highest contract charge 0.90% Class A $144.44 -- -- -- (5.19)%
All contract charges -- 113 $17,115 0.00% --
2015 Lowest contract charge 0.00% Class A $164.82 -- -- -- (5.49)%
Highest contract charge 0.90% Class A $152.35 -- -- -- (6.34)%
All contract charges -- 129 $20,433 0.00% --
2014 Lowest contract charge 0.00% Class A $174.40 -- -- -- (0.71)%
Highest contract charge 0.90% Class A $162.67 -- -- -- (1.60)%
All contract charges -- 154 $25,987 0.00% --
|
FSA-131
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class B $286.64 -- -- -- (1.79)%
Highest contract charge 0.60% Class B $182.43 -- -- -- (2.38)%
All contract charges -- 104 $23,363 0.00% --
2017 Lowest contract charge 0.00% Class B $291.87 -- -- -- 27.90%
Highest contract charge 0.60% Class B $186.88 -- -- -- 27.14%
All contract charges -- 99 $25,171 0.00% --
2016 Lowest contract charge 0.00% Class B $228.20 -- -- -- (4.33)%
Highest contract charge 0.60% Class B $146.99 -- -- -- (4.90)%
All contract charges -- 102 $20,749 0.00% --
2015 Lowest contract charge 0.00% Class B $238.53 -- -- -- (5.49)%
Highest contract charge 0.60% Class B $154.57 -- -- -- (6.06)%
All contract charges -- 105 $22,021 0.00% --
2014 Lowest contract charge 0.00% Class B $252.39 -- -- -- (0.71)%
Highest contract charge 0.60% Class B $164.54 -- -- -- (1.31)%
All contract charges -- 109 $23,819 0.00% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class A $275.24 -- -- -- (2.98)%
Highest contract charge 0.90% Class A $247.62 -- -- -- (3.86)%
All contract charges -- 116 $14,806 0.09% --
2017 Lowest contract charge 0.00% Class A $283.70 -- -- -- 34.60%
Highest contract charge 0.90% Class A $257.56 -- -- -- 33.39%
All contract charges -- 90 $15,287 0.18% --
2016 Lowest contract charge 0.00% Class A $210.78 -- -- -- 6.82%
Highest contract charge 0.90% Class A $193.09 -- -- -- 5.85%
All contract charges -- 81 $10,978 0.34% --
2015 Lowest contract charge 0.00% Class A $197.33 -- -- -- 11.53%
Highest contract charge 0.90% Class A $182.41 -- -- -- 10.52%
All contract charges -- 56 $ 9,495 0.12% --
2014 Lowest contract charge 0.00% Class A $176.93 -- -- -- 7.81%
Highest contract charge 0.90% Class A $165.04 -- -- -- 6.85%
All contract charges -- 56 $ 8,450 0.11% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class B $336.10 -- -- -- (2.98)%
Highest contract charge 0.60% Class B $253.58 -- -- -- (3.57)%
All contract charges -- 78 $24,819 0.09% --
2017 Lowest contract charge 0.00% Class B $346.43 -- -- -- 34.59%
Highest contract charge 0.60% Class B $262.96 -- -- -- 33.78%
All contract charges -- 75 $24,456 0.18% --
2016 Lowest contract charge 0.00% Class B $257.40 -- -- -- 6.81%
Highest contract charge 0.60% Class B $196.56 -- -- -- 6.17%
All contract charges -- 75 $18,005 0.34% --
2015 Lowest contract charge 0.00% Class B $240.98 -- -- -- 11.52%
Highest contract charge 0.60% Class B $185.13 -- -- -- 10.86%
All contract charges -- 71 $15,923 0.12% --
2014 Lowest contract charge 0.00% Class B $216.08 -- -- -- 7.82%
Highest contract charge 0.60% Class B $167.00 -- -- -- 7.17%
All contract charges -- 76 $15,333 0.11% --
BLACKROCK GLOBAL ALLOCATION V.I. FUND
2018 Lowest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
Highest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
All contract charges -- 302 $ 5,434 1.04% --
2017 Lowest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
Highest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
All contract charges -- 193 $ 4,268 1.33% --
|
FSA-132
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
BLACKROCK GLOBAL ALLOCATION V.I. FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
Highest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
All contract charges -- 171 $ 4,445 0.69% --
2015 Lowest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
Highest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
All contract charges -- 203 $ 9,384 1.08% --
2014 Lowest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
Highest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
All contract charges -- 200 $ 9,833 2.50% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class A $238.57 -- -- -- (0.50)%
Highest contract charge 0.90% Class A $229.10 -- -- -- (1.40)%
All contract charges -- 212 $53,081 2.21% --
2017 Lowest contract charge 0.00% Class A $239.78 -- -- -- 2.24%
Highest contract charge 0.90% Class A $232.36 -- -- -- 1.32%
All contract charges -- 220 $57,442 1.58% --
2016 Lowest contract charge 0.00% Class A $234.53 -- -- -- 2.93%
Highest contract charge 0.90% Class A $229.34 -- -- -- 2.01%
All contract charges -- 252 $66,941 1.97% --
2015 Lowest contract charge 0.00% Class A $227.86 -- -- -- (0.64)%
Highest contract charge 0.90% Class A $224.83 -- -- -- (1.53)%
All contract charges -- 265 $70,209 1.52% --
2014 Lowest contract charge 0.00% Class A $229.33 -- -- -- 2.39%
Highest contract charge 0.90% Class A $228.33 -- -- -- 1.46%
All contract charges -- 286 $77,439 2.51% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class B $144.32 -- -- -- (0.50)%
Highest contract charge 0.60% Class B $110.73 -- -- -- (1.10)%
All contract charges -- 118 $14,419 2.21% --
2017 Lowest contract charge 0.00% Class B $145.05 -- -- -- 2.24%
Highest contract charge 0.60% Class B $111.96 -- -- -- 1.62%
All contract charges -- 126 $15,563 1.58% --
2016 Lowest contract charge 0.00% Class B $141.87 -- -- -- 2.93%
Highest contract charge 0.60% Class B $110.17 -- -- -- 2.31%
All contract charges -- 132 $15,824 1.97% --
2015 Lowest contract charge 0.00% Class B $137.83 -- -- -- (0.64)%
Highest contract charge 0.60% Class B $107.68 -- -- -- (1.24)%
All contract charges -- 136 $15,816 1.52% --
2014 Lowest contract charge 0.00% Class B $138.72 -- -- -- 2.38%
Highest contract charge 0.60% Class B $109.03 -- -- -- 1.77%
All contract charges -- 145 $16,903 2.51% --
CHARTER/SM /SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $230.14 -- -- -- (5.03)%
Highest contract charge 0.90% Class B $141.28 -- -- -- (5.89)%
All contract charges -- 62 $12,512 3.68% --
2017 Lowest contract charge 0.00% Class B $242.33 -- -- -- 24.36%
Highest contract charge 0.90% Class B $150.12 -- -- -- 23.24%
All contract charges -- 62 $13,055 2.72% --
2016 Lowest contract charge 0.00% Class B $194.86 -- -- -- 9.35%
Highest contract charge 0.90% Class B $121.81 -- -- -- 8.37%
All contract charges -- 63 $10,707 0.00% --
2015 Lowest contract charge 0.00% Class B $178.20 -- -- -- (6.04)%
Highest contract charge 0.90% Class B $112.40 -- -- -- (6.89)%
All contract charges -- 72 $11,024 0.27% --
|
FSA-133
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
CHARTER/SM /SMALL CAP GROWTH (CONTINUED)
2014 Lowest contract charge 0.00% Class B $189.66 -- -- -- (2.61)%
Highest contract charge 0.90% Class B $120.72 -- -- -- (3.49)%
All contract charges -- 73 $12,004 0.00% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class A $293.02 -- -- -- (12.98)%
Highest contract charge 0.60% Class A $267.34 -- -- -- (13.51)%
All contract charges -- 37 $10,770 1.15% --
2017 Lowest contract charge 0.00% Class A $336.73 -- -- -- 11.29%
Highest contract charge 0.60% Class A $309.09 -- -- -- 10.63%
All contract charges -- 43 $14,136 1.45% --
2016 Lowest contract charge 0.00% Class A $302.56 -- -- -- 25.23%
Highest contract charge 0.60% Class A $279.39 -- -- -- 24.48%
All contract charges -- 46 $13,586 1.36% --
2015 Lowest contract charge 0.00% Class A $241.60 -- -- -- (13.13)%
Highest contract charge 0.60% Class A $224.44 -- -- -- (13.65)%
All contract charges -- 48 $11,523 0.52% --
2014 Lowest contract charge 0.00% Class A $278.12 -- -- -- (5.12)%
Highest contract charge 0.60% Class A $259.93 -- -- -- (5.69)%
All contract charges -- 51 $14,155 0.17% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class B $307.37 -- -- -- (12.98)%
Highest contract charge 0.90% Class B $257.41 -- -- -- (13.77)%
All contract charges -- 48 $13,628 1.15% --
2017 Lowest contract charge 0.00% Class B $353.23 -- -- -- 11.30%
Highest contract charge 0.90% Class B $298.52 -- -- -- 10.30%
All contract charges -- 51 $16,788 1.45% --
2016 Lowest contract charge 0.00% Class B $317.38 -- -- -- 25.23%
Highest contract charge 0.90% Class B $270.65 -- -- -- 24.11%
All contract charges -- 55 $16,433 1.36% --
2015 Lowest contract charge 0.00% Class B $253.43 -- -- -- (13.13)%
Highest contract charge 0.90% Class B $218.07 -- -- -- (13.92)%
All contract charges -- 61 $14,517 0.52% --
2014 Lowest contract charge 0.00% Class B $291.75 -- -- -- (5.11)%
Highest contract charge 0.90% Class B $253.33 -- -- -- (5.96)%
All contract charges -- 65 $17,745 0.17% --
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
Highest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
All contract charges -- 56 $ 618 0.25% --
2017 Lowest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
Highest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
All contract charges -- 25 $ 314 0.47% --
2016 Lowest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
Highest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
All contract charges -- -- $ 5 1.01% --
EQ/AMERICAN CENTURY MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(g) $ 21.75 -- -- -- (9.38)%
Highest contract charge 0.90% Class B(f)(g) $201.05 -- -- -- (9.54)%
All contract charges -- 443 $48,111 0.57% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class A $360.36 -- -- -- (8.02)%
Highest contract charge 0.60% Class A $328.79 -- -- -- (8.57)%
All contract charges -- 244 $35,722 1.60% --
2017 Lowest contract charge 0.00% Class A $391.76 -- -- -- 8.11%
Highest contract charge 0.60% Class A $359.60 -- -- -- 7.46%
All contract charges -- 247 $41,840 1.40% --
|
FSA-134
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/BLACKROCK BASIC VALUE EQUITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $362.37 -- -- -- 17.96%
Highest contract charge 0.60% Class A $334.63 -- -- -- 17.26%
All contract charges -- 246 $ 40,079 1.49% --
2015 Lowest contract charge 0.00% Class A $307.19 -- -- -- (6.15)%
Highest contract charge 0.60% Class A $285.38 -- -- -- (6.71)%
All contract charges -- 242 $ 36,247 1.28% --
2014 Lowest contract charge 0.00% Class A $327.32 -- -- -- 9.71%
Highest contract charge 0.60% Class A $305.92 -- -- -- 9.05%
All contract charges -- 227 $ 40,401 1.07% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class B $474.29 -- -- -- (8.01)%
Highest contract charge 0.90% Class B $389.92 -- -- -- (8.85)%
All contract charges -- 347 $147,522 1.60% --
2017 Lowest contract charge 0.00% Class B $515.61 -- -- -- 8.11%
Highest contract charge 0.90% Class B $427.76 -- -- -- 7.14%
All contract charges -- 369 $170,709 1.40% --
2016 Lowest contract charge 0.00% Class B $476.93 -- -- -- 17.96%
Highest contract charge 0.90% Class B $399.26 -- -- -- 16.91%
All contract charges -- 400 $171,810 1.49% --
2015 Lowest contract charge 0.00% Class B $404.30 -- -- -- (6.15)%
Highest contract charge 0.90% Class B $341.52 -- -- -- (6.99)%
All contract charges -- 436 $158,529 1.28% --
2014 Lowest contract charge 0.00% Class B $430.79 -- -- -- 9.70%
Highest contract charge 0.90% Class B $367.20 -- -- -- 8.72%
All contract charges -- 463 $179,873 1.07% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class A $421.95 -- -- -- (4.84)%
Highest contract charge 0.60% Class A $262.91 -- -- -- (5.41)%
All contract charges -- 70 $ 15,092 0.57% --
2017 Lowest contract charge 0.00% Class A $443.41 -- -- -- 25.44%
Highest contract charge 0.60% Class A $277.95 -- -- -- 24.69%
All contract charges -- 62 $ 16,329 0.78% --
2016 Lowest contract charge 0.00% Class A $353.49 -- -- -- 8.42%
Highest contract charge 0.60% Class A $222.92 -- -- -- 7.77%
All contract charges -- 60 $ 13,834 0.87% --
2015 Lowest contract charge 0.00% Class A $326.03 -- -- -- 1.91%
Highest contract charge 0.60% Class A $206.84 -- -- -- 1.30%
All contract charges -- 62 $ 14,705 0.59% --
2014 Lowest contract charge 0.00% Class A $319.92 -- -- -- 10.51%
Highest contract charge 0.60% Class A $204.19 -- -- -- 9.85%
All contract charges -- 62 $ 15,531 0.70% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class B $320.51 -- -- -- (4.84)%
Highest contract charge 0.90% Class B $269.10 -- -- -- (5.70)%
All contract charges -- 337 $ 96,993 0.57% --
2017 Lowest contract charge 0.00% Class B $336.81 -- -- -- 25.44%
Highest contract charge 0.90% Class B $285.37 -- -- -- 24.31%
All contract charges -- 358 $108,933 0.78% --
2016 Lowest contract charge 0.00% Class B $268.51 -- -- -- 8.42%
Highest contract charge 0.90% Class B $229.56 -- -- -- 7.45%
All contract charges -- 377 $ 92,101 0.87% --
2015 Lowest contract charge 0.00% Class B $247.65 -- -- -- 1.91%
Highest contract charge 0.90% Class B $213.65 -- -- -- 1.00%
All contract charges -- 417 $ 94,238 0.59% --
2014 Lowest contract charge 0.00% Class B $243.01 -- -- -- 10.51%
Highest contract charge 0.90% Class B $211.54 -- -- -- 9.52%
All contract charges -- 419 $ 93,222 0.70% --
|
FSA-135
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class A $677.71 -- -- -- (5.80)%
Highest contract charge 0.90% Class A $683.50 -- -- -- (6.65)%
All contract charges -- 1,222 $1,276,167 1.30% --
2017 Lowest contract charge 0.00% Class A $719.43 -- -- -- 20.47%
Highest contract charge 0.90% Class A $732.21 -- -- -- 19.39%
All contract charges -- 1,320 $1,495,123 1.30% --
2016 Lowest contract charge 0.00% Class A $597.19 -- -- -- 11.69%
Highest contract charge 0.90% Class A $613.30 -- -- -- 10.69%
All contract charges -- 1,384 $1,360,428 1.55% --
2015 Lowest contract charge 0.00% Class A $534.69 -- -- -- (0.05)%
Highest contract charge 0.90% Class A $554.08 -- -- -- (0.95)%
All contract charges -- 1,448 $1,330,558 1.37% --
2014 Lowest contract charge 0.00% Class A $534.98 -- -- -- 12.05%
Highest contract charge 0.90% Class A $559.42 -- -- -- 11.05%
All contract charges -- 1,467 $1,441,799 1.24% --
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class B $211.64 -- -- -- (5.80)%
Highest contract charge 0.60% Class B $226.64 -- -- -- (6.37)%
All contract charges -- 926 $ 205,339 1.30% --
2017 Lowest contract charge 0.00% Class B $224.67 -- -- -- 20.47%
Highest contract charge 0.60% Class B $242.06 -- -- -- 19.75%
All contract charges -- 951 $ 225,386 1.30% --
2016 Lowest contract charge 0.00% Class B $186.50 -- -- -- 11.69%
Highest contract charge 0.60% Class B $202.14 -- -- -- 11.02%
All contract charges -- 981 $ 194,128 1.55% --
2015 Lowest contract charge 0.00% Class B $166.98 -- -- -- (0.05)%
Highest contract charge 0.60% Class B $182.07 -- -- -- (0.65)%
All contract charges -- 1,016 $ 181,517 1.37% --
2014 Lowest contract charge 0.00% Class B $167.07 -- -- -- 12.05%
Highest contract charge 0.60% Class B $183.27 -- -- -- 11.38%
All contract charges -- 1,060 $ 191,161 1.24% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class A $137.67 -- -- -- 0.25%
Highest contract charge 0.90% Class A $123.31 -- -- -- (0.66)%
All contract charges -- 176 $ 25,499 1.91% --
2017 Lowest contract charge 0.00% Class A $137.33 -- -- -- 1.46%
Highest contract charge 0.90% Class A $124.13 -- -- -- 0.55%
All contract charges -- 182 $ 26,157 1.39% --
2016 Lowest contract charge 0.00% Class A $135.35 -- -- -- 1.38%
Highest contract charge 0.90% Class A $123.45 -- -- -- 0.47%
All contract charges -- 200 $ 28,475 1.50% --
2015 Lowest contract charge 0.00% Class A $133.51 -- -- -- 0.44%
Highest contract charge 0.90% Class A $122.87 -- -- -- (0.47)%
All contract charges -- 207 $ 29,322 1.49% --
2014 Lowest contract charge 0.00% Class A $132.93 -- -- -- 2.41%
Highest contract charge 0.90% Class A $123.45 -- -- -- 1.50%
All contract charges -- 219 $ 30,635 1.31% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class B $143.04 -- -- -- 0.25%
Highest contract charge 0.60% Class B $158.32 -- -- -- (0.36)%
All contract charges -- 162 $ 24,073 1.91% --
2017 Lowest contract charge 0.00% Class B $142.69 -- -- -- 1.46%
Highest contract charge 0.60% Class B $158.89 -- -- -- 0.86%
All contract charges -- 172 $ 25,594 1.39% --
|
FSA-136
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/CORE BOND INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class B $140.63 -- -- -- 1.38%
Highest contract charge 0.60% Class B $157.54 -- -- -- 0.77%
All contract charges -- 165 $ 24,392 1.50% --
2015 Lowest contract charge 0.00% Class B $138.72 -- -- -- 0.44%
Highest contract charge 0.60% Class B $156.34 -- -- -- (0.17)%
All contract charges -- 157 $ 23,116 1.49% --
2014 Lowest contract charge 0.00% Class B $138.11 -- -- -- 2.41%
Highest contract charge 0.60% Class B $156.60 -- -- -- 1.80%
All contract charges -- 151 $ 22,367 1.31% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class A $777.94 -- -- -- (4.93)%
Highest contract charge 0.90% Class A $628.01 -- -- -- (5.80)%
All contract charges -- 1,470 $538,073 1.45% --
2017 Lowest contract charge 0.00% Class A $818.32 -- -- -- 21.04%
Highest contract charge 0.90% Class A $666.65 -- -- -- 19.96%
All contract charges -- 1,393 $602,506 1.45% --
2016 Lowest contract charge 0.00% Class A $676.05 -- -- -- 11.24%
Highest contract charge 0.90% Class A $555.73 -- -- -- 10.24%
All contract charges -- 1,292 $542,718 1.66% --
2015 Lowest contract charge 0.00% Class A $607.76 -- -- -- 0.80%
Highest contract charge 0.90% Class A $504.12 -- -- -- (0.11)%
All contract charges -- 1,399 $519,057 1.61% --
2014 Lowest contract charge 0.00% Class A $602.94 -- -- -- 12.98%
Highest contract charge 0.90% Class A $504.66 -- -- -- 11.96%
All contract charges -- 1,320 $556,228 1.39% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class B $235.43 -- -- -- (4.94)%
Highest contract charge 0.60% Class B $216.18 -- -- -- (5.51)%
All contract charges -- 1,158 $264,177 1.45% --
2017 Lowest contract charge 0.00% Class B $247.66 -- -- -- 21.04%
Highest contract charge 0.60% Class B $228.79 -- -- -- 20.32%
All contract charges -- 1,137 $272,641 1.45% --
2016 Lowest contract charge 0.00% Class B $204.61 -- -- -- 11.23%
Highest contract charge 0.60% Class B $190.15 -- -- -- 10.56%
All contract charges -- 1,100 $217,785 1.66% --
2015 Lowest contract charge 0.00% Class B $183.95 -- -- -- 0.79%
Highest contract charge 0.60% Class B $171.99 -- -- -- 0.19%
All contract charges -- 1,073 $191,053 1.61% --
2014 Lowest contract charge 0.00% Class B $182.51 -- -- -- 12.97%
Highest contract charge 0.60% Class B $171.67 -- -- -- 12.30%
All contract charges -- 1,056 $186,511 1.39% --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP
2018 Lowest contract charge 0.00% Class B(f)(h) $ 32.04 -- -- -- (11.05)%
Highest contract charge 0.90% Class B(f)(h) $195.89 -- -- -- (11.22)%
All contract charges -- 589 $ 93,723 0.25% --
EQ/FRANKLIN RISING DIVIDENDS
2018 Lowest contract charge 0.00% Class B(f)(i) $232.46 -- -- -- (7.28)%
Highest contract charge 0.90% Class B(f)(i) $214.89 -- -- -- (7.44)%
All contract charges -- 229 $ 52,109 0.29% --
EQ/FRANKLIN STRATEGIC INCOME
2018 Lowest contract charge 0.00% Class B(f)(j) $136.15 -- -- -- (1.14)%
Highest contract charge 0.90% Class B(f)(j) $125.86 -- -- -- (1.32)%
All contract charges -- 250 $ 33,498 0.70% --
|
FSA-137
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class A $142.20 -- -- -- (1.63)%
Highest contract charge 0.90% Class A $119.81 -- -- -- (2.51)%
All contract charges -- 104 $ 7,532 1.35% --
2017 Lowest contract charge 0.00% Class A $144.55 -- -- -- 4.65%
Highest contract charge 0.90% Class A $122.90 -- -- -- 3.71%
All contract charges -- 99 $ 7,953 0.04% --
2016 Lowest contract charge 0.00% Class A $138.13 -- -- -- 0.68%
Highest contract charge 0.90% Class A $118.50 -- -- -- (0.23)%
All contract charges -- 99 $ 8,311 1.92% --
2015 Lowest contract charge 0.00% Class A $137.20 -- -- -- (3.80)%
Highest contract charge 0.90% Class A $118.77 -- -- -- (4.66)%
All contract charges -- 93 $ 8,563 0.04% --
2014 Lowest contract charge 0.00% Class A $142.62 -- -- -- 0.88%
Highest contract charge 0.90% Class A $124.58 -- -- -- (0.02)%
All contract charges -- 100 $11,375 0.67% --
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class B $135.52 -- -- -- (1.63)%
Highest contract charge 0.60% Class B $122.66 -- -- -- (2.22)%
All contract charges -- 69 $ 9,105 1.35% --
2017 Lowest contract charge 0.00% Class B $137.76 -- -- -- 4.65%
Highest contract charge 0.60% Class B $125.44 -- -- -- 4.02%
All contract charges -- 68 $ 9,131 0.04% --
2016 Lowest contract charge 0.00% Class B $131.64 -- -- -- 0.68%
Highest contract charge 0.60% Class B $120.59 -- -- -- 0.07%
All contract charges -- 69 $ 8,747 1.92% --
2015 Lowest contract charge 0.00% Class B $130.75 -- -- -- (3.80)%
Highest contract charge 0.60% Class B $120.50 -- -- -- (4.38)%
All contract charges -- 66 $ 8,457 0.04% --
2014 Lowest contract charge 0.00% Class B $135.92 -- -- -- 0.89%
Highest contract charge 0.60% Class B $126.02 -- -- -- 0.29%
All contract charges -- 67 $ 8,941 0.67% --
EQ/GOLDMAN SACHS MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(k) $182.47 -- -- -- (8.70)%
Highest contract charge 0.90% Class B(f)(k) $168.67 -- -- -- (8.86)%
All contract charges -- 48 $ 8,496 0.22% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class A $237.70 -- -- -- 0.83%
Highest contract charge 0.90% Class A $199.78 -- -- -- (0.08)%
All contract charges -- 207 $29,582 1.24% --
2017 Lowest contract charge 0.00% Class A $235.74 -- -- -- 0.34%
Highest contract charge 0.90% Class A $199.94 -- -- -- (0.56)%
All contract charges -- 370 $69,699 0.84% --
2016 Lowest contract charge 0.00% Class A $234.93 -- -- -- 0.45%
Highest contract charge 0.90% Class A $201.07 -- -- -- (0.45)%
All contract charges -- 354 $70,206 0.70% --
2015 Lowest contract charge 0.00% Class A $233.88 -- -- -- 0.43%
Highest contract charge 0.90% Class A $201.98 -- -- -- (0.47)%
All contract charges -- 323 $65,486 0.60% --
2014 Lowest contract charge 0.00% Class A $232.88 -- -- -- 1.53%
Highest contract charge 0.90% Class A $202.94 -- -- -- 0.62%
All contract charges -- 318 $65,987 0.40% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class B $170.68 -- -- -- 0.83%
Highest contract charge 0.60% Class B $151.63 -- -- -- 0.22%
All contract charges -- 119 $18,533 1.24% --
|
FSA-138
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INTERMEDIATE GOVERNMENT BOND (CONTINUED)
2017 Lowest contract charge 0.00% Class B $169.28 -- -- -- 0.34%
Highest contract charge 0.60% Class B $151.29 -- -- -- (0.26)%
All contract charges -- 123 $ 19,188 0.84% --
2016 Lowest contract charge 0.00% Class B $168.70 -- -- -- 0.45%
Highest contract charge 0.60% Class B $151.68 -- -- -- (0.15)%
All contract charges -- 135 $ 20,929 0.70% --
2015 Lowest contract charge 0.00% Class B $167.94 -- -- -- 0.42%
Highest contract charge 0.60% Class B $151.91 -- -- -- (0.18)%
All contract charges -- 120 $ 18,638 0.60% --
2014 Lowest contract charge 0.00% Class B $167.23 -- -- -- 1.54%
Highest contract charge 0.60% Class B $152.18 -- -- -- 0.93%
All contract charges -- 125 $ 19,156 0.40% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class A $199.45 -- -- -- (15.17)%
Highest contract charge 0.90% Class A $160.91 -- -- -- (15.94)%
All contract charges -- 1,515 $218,461 2.40% --
2017 Lowest contract charge 0.00% Class A $235.12 -- -- -- 23.22%
Highest contract charge 0.90% Class A $191.42 -- -- -- 22.12%
All contract charges -- 1,529 $270,450 2.64% --
2016 Lowest contract charge 0.00% Class A $190.81 -- -- -- 2.20%
Highest contract charge 0.90% Class A $156.75 -- -- -- 1.28%
All contract charges -- 1,486 $220,734 2.72% --
2015 Lowest contract charge 0.00% Class A $186.71 -- -- -- (2.14)%
Highest contract charge 0.90% Class A $154.77 -- -- -- (3.02)%
All contract charges -- 1,506 $232,186 2.32% --
2014 Lowest contract charge 0.00% Class A $190.79 -- -- -- (6.90)%
Highest contract charge 0.90% Class A $159.59 -- -- -- (7.74)%
All contract charges -- 1,507 $254,494 2.97% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class B $136.17 -- -- -- (15.17)%
Highest contract charge 0.90% Class B $118.46 -- -- -- (15.94)%
All contract charges -- 407 $ 53,646 2.40% --
2017 Lowest contract charge 0.00% Class B $160.52 -- -- -- 23.22%
Highest contract charge 0.90% Class B $140.92 -- -- -- 22.11%
All contract charges -- 409 $ 63,674 2.64% --
2016 Lowest contract charge 0.00% Class B $130.27 -- -- -- 2.20%
Highest contract charge 0.90% Class B $115.40 -- -- -- 1.28%
All contract charges -- 407 $ 51,586 2.72% --
2015 Lowest contract charge 0.00% Class B $127.47 -- -- -- (2.13)%
Highest contract charge 0.90% Class B $113.94 -- -- -- (3.02)%
All contract charges -- 424 $ 52,585 2.32% --
2014 Lowest contract charge 0.00% Class B $130.25 -- -- -- (6.90)%
Highest contract charge 0.90% Class B $117.49 -- -- -- (7.74)%
All contract charges -- 414 $ 52,708 2.97% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class A $169.29 -- -- -- (12.39)%
Highest contract charge 0.90% Class A $152.29 -- -- -- (13.19)%
All contract charges -- 92 $ 11,775 1.55% --
2017 Lowest contract charge 0.00% Class A $193.24 -- -- -- 17.98%
Highest contract charge 0.90% Class A $175.43 -- -- -- 16.92%
All contract charges -- 94 $ 14,441 0.80% --
2016 Lowest contract charge 0.00% Class A $163.79 -- -- -- 17.38%
Highest contract charge 0.90% Class A $150.04 -- -- -- 16.32%
All contract charges -- 80 $ 10,866 2.44% --
|
FSA-139
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INVESCO COMSTOCK (CONTINUED)
2015 Lowest contract charge 0.00% Class A $139.54 -- -- -- (6.19)%
Highest contract charge 0.90% Class A $128.99 -- -- -- (7.03)%
All contract charges -- 100 $12,263 2.18% --
2014 Lowest contract charge 0.00% Class A $148.75 -- -- -- 8.92%
Highest contract charge 0.90% Class A $138.74 -- -- -- 7.94%
All contract charges -- 101 $13,086 1.88% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class B $215.50 -- -- -- (12.39)%
Highest contract charge 0.60% Class B $155.85 -- -- -- (12.92)%
All contract charges -- 68 $13,818 1.55% --
2017 Lowest contract charge 0.00% Class B $245.99 -- -- -- 17.98%
Highest contract charge 0.60% Class B $178.98 -- -- -- 17.27%
All contract charges -- 66 $15,264 0.80% --
2016 Lowest contract charge 0.00% Class B $208.50 -- -- -- 17.37%
Highest contract charge 0.60% Class B $152.62 -- -- -- 16.67%
All contract charges -- 65 $12,804 2.44% --
2015 Lowest contract charge 0.00% Class B $177.64 -- -- -- (6.19)%
Highest contract charge 0.60% Class B $130.81 -- -- -- (6.75)%
All contract charges -- 71 $11,678 2.18% --
2014 Lowest contract charge 0.00% Class B $189.36 -- -- -- 8.92%
Highest contract charge 0.60% Class B $140.28 -- -- -- 8.26%
All contract charges -- 69 $12,100 1.88% --
EQ/INVESCO GLOBAL REAL ESTATE
2018 Lowest contract charge 0.00% Class B(f)(l) $ 16.47 -- -- -- (0.72)%
Highest contract charge 0.90% Class B(f)(l) $152.23 -- -- -- (0.92)%
All contract charges -- 449 $36,366 0.56% --
EQ/INVESCO INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B(f)(m) $ 14.21 -- -- -- (5.01)%
Highest contract charge 0.90% Class B(f)(m) $131.36 -- -- -- (5.20)%
All contract charges -- 526 $32,100 0.22% --
EQ/IVY ENERGY
2018 Lowest contract charge 0.00% Class B(f)(n) $ 7.26 -- -- -- (31.51)%
Highest contract charge 0.90% Class B(f)(n) $ 67.13 -- -- -- (31.59)%
All contract charges -- 250 $10,239 0.10% --
EQ/IVY MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B(f)(o) $ 23.22 -- -- -- (9.37)%
Highest contract charge 0.90% Class B(f)(o) $214.67 -- -- -- (9.51)%
All contract charges -- 260 $33,196 0.01% --
EQ/IVY SCIENCE AND TECHNOLOGY
2018 Lowest contract charge 0.00% Class B(f)(p) $169.19 -- -- -- (11.81)%
Highest contract charge 0.90% Class B(f)(p) $160.77 -- -- -- (11.96)%
All contract charges -- 257 $32,653 0.00% --
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
Highest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
All contract charges -- 100 $ 6,391 1.03% --
2017 Lowest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
Highest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
All contract charges -- 41 $ 4,807 0.86% --
2016 Lowest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
Highest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
All contract charges -- 32 $ 3,509 1.05% --
2015 Lowest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
Highest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
All contract charges -- 30 $ 2,225 0.70% --
2014 Lowest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
Highest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
All contract charges -- 21 $ 1,687 1.08% --
|
FSA-140
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class B $327.29 -- -- -- (15.40)%
Highest contract charge 0.90% Class B $269.06 -- -- -- (16.17)%
All contract charges -- 127 $ 37,048 1.03% --
2017 Lowest contract charge 0.00% Class B $386.87 -- -- -- 17.72%
Highest contract charge 0.90% Class B $320.95 -- -- -- 16.66%
All contract charges -- 131 $ 45,408 0.86% --
2016 Lowest contract charge 0.00% Class B $328.64 -- -- -- 21.53%
Highest contract charge 0.90% Class B $275.11 -- -- -- 20.44%
All contract charges -- 115 $ 34,289 1.05% --
2015 Lowest contract charge 0.00% Class B $270.42 -- -- -- (2.28)%
Highest contract charge 0.90% Class B $228.43 -- -- -- (3.16)%
All contract charges -- 121 $ 29,513 0.70% --
2014 Lowest contract charge 0.00% Class B $276.74 -- -- -- 14.38%
Highest contract charge 0.90% Class B $235.89 -- -- -- 13.35%
All contract charges -- 124 $ 30,663 1.08% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class A $442.02 -- -- -- (2.26)%
Highest contract charge 0.60% Class A $290.81 -- -- -- (2.85)%
All contract charges -- 92 $ 19,274 0.63% --
2017 Lowest contract charge 0.00% Class A $452.25 -- -- -- 29.22%
Highest contract charge 0.60% Class A $299.34 -- -- -- 28.44%
All contract charges -- 86 $ 20,954 0.77% --
2016 Lowest contract charge 0.00% Class A $349.98 -- -- -- 6.34%
Highest contract charge 0.60% Class A $233.05 -- -- -- 5.71%
All contract charges -- 82 $ 16,601 1.01% --
2015 Lowest contract charge 0.00% Class A $329.10 -- -- -- 4.86%
Highest contract charge 0.60% Class A $220.46 -- -- -- 4.23%
All contract charges -- 77 $ 16,461 0.87% --
2014 Lowest contract charge 0.00% Class A $313.85 -- -- -- 12.24%
Highest contract charge 0.60% Class A $211.51 -- -- -- 11.57%
All contract charges -- 67 $ 15,886 0.91% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class B $219.96 -- -- -- (2.26)%
Highest contract charge 0.90% Class B $184.28 -- -- -- (3.15)%
All contract charges -- 644 $128,927 0.63% --
2017 Lowest contract charge 0.00% Class B $225.05 -- -- -- 29.22%
Highest contract charge 0.90% Class B $190.27 -- -- -- 28.07%
All contract charges -- 680 $139,563 0.77% --
2016 Lowest contract charge 0.00% Class B $174.16 -- -- -- 6.34%
Highest contract charge 0.90% Class B $148.57 -- -- -- 5.39%
All contract charges -- 713 $113,687 1.01% --
2015 Lowest contract charge 0.00% Class B $163.77 -- -- -- 4.87%
Highest contract charge 0.90% Class B $140.97 -- -- -- 3.92%
All contract charges -- 764 $114,945 0.87% --
2014 Lowest contract charge 0.00% Class B $156.17 -- -- -- 12.24%
Highest contract charge 0.90% Class B $135.65 -- -- -- 11.22%
All contract charges -- 805 $115,779 0.91% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class A $108.69 -- -- -- (8.89)%
Highest contract charge 0.90% Class A $ 97.78 -- -- -- (9.71)%
All contract charges -- 106 $ 10,979 1.99% --
2017 Lowest contract charge 0.00% Class A $119.30 -- -- -- 13.01%
Highest contract charge 0.90% Class A $108.30 -- -- -- 11.98%
All contract charges -- 122 $ 13,848 1.94% --
|
FSA-141
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/LARGE CAP VALUE INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class A $105.57 -- -- -- 16.47%
Highest contract charge 0.90% Class A $ 96.71 -- -- -- 15.43%
All contract charges -- 125 $ 12,655 2.17% --
2015 Lowest contract charge 0.00% Class A $ 90.64 -- -- -- (4.43)%
Highest contract charge 0.90% Class A $ 83.78 -- -- -- (5.29)%
All contract charges -- 114 $ 10,014 1.96% --
2014 Lowest contract charge 0.00% Class A $ 94.84 -- -- -- 12.62%
Highest contract charge 0.90% Class A $ 88.46 -- -- -- 11.61%
All contract charges -- 112 $ 10,362 1.62% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class B $125.20 -- -- -- (8.89)%
Highest contract charge 0.60% Class B $100.13 -- -- -- (9.43)%
All contract charges -- 114 $ 13,704 1.99% --
2017 Lowest contract charge 0.00% Class B $137.42 -- -- -- 13.00%
Highest contract charge 0.60% Class B $110.56 -- -- -- 12.32%
All contract charges -- 115 $ 15,123 1.94% --
2016 Lowest contract charge 0.00% Class B $121.61 -- -- -- 16.47%
Highest contract charge 0.60% Class B $ 98.43 -- -- -- 15.77%
All contract charges -- 105 $ 12,174 2.17% --
2015 Lowest contract charge 0.00% Class B $104.41 -- -- -- (4.43)%
Highest contract charge 0.60% Class B $ 85.02 -- -- -- (5.01)%
All contract charges -- 97 $ 9,549 1.96% --
2014 Lowest contract charge 0.00% Class B $109.25 -- -- -- 12.63%
Highest contract charge 0.60% Class B $ 89.50 -- -- -- 11.96%
All contract charges -- 84 $ 8,774 1.62% --
EQ/LAZARD EMERGING MARKETS EQUITY
2018 Lowest contract charge 0.00% Class B(f)(q) $ 10.83 -- -- -- (1.37)%
Highest contract charge 0.90% Class B(f)(q) $100.12 -- -- -- (1.54)%
All contract charges -- 966 $ 52,589 0.17% --
EQ/MFS INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B $225.18 -- -- -- (9.37)%
Highest contract charge 0.90% Class B $126.94 -- -- -- (10.19)%
All contract charges -- 281 $ 46,697 0.89% --
2017 Lowest contract charge 0.00% Class B $248.46 -- -- -- 32.05%
Highest contract charge 0.90% Class B $141.35 -- -- -- 30.88%
All contract charges -- 283 $ 51,192 0.84% --
2016 Lowest contract charge 0.00% Class B $188.15 -- -- -- 1.98%
Highest contract charge 0.90% Class B $108.00 -- -- -- 1.06%
All contract charges -- 283 $ 38,646 1.00% --
2015 Lowest contract charge 0.00% Class B $184.50 -- -- -- 0.20%
Highest contract charge 0.90% Class B $106.87 -- -- -- (0.71)%
All contract charges -- 285 $ 37,624 0.60% --
2014 Lowest contract charge 0.00% Class B $184.13 -- -- -- (5.01)%
Highest contract charge 0.90% Class B $107.63 -- -- -- (5.86)%
All contract charges -- 287 $ 37,394 0.94% --
EQ/MFS INTERNATIONAL VALUE
2018 Lowest contract charge 0.00% Class B(f)(r) $ 19.84 -- -- -- (4.34)%
Highest contract charge 0.90% Class B(f)(r) $183.36 -- -- -- (4.53)%
All contract charges -- 1,057 $102,837 0.00% --
EQ/MFS UTILITIES SERIES
2018 Lowest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
Highest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
All contract charges -- 102 $ 2,292 0.52% --
|
FSA-142
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class A $403.99 -- -- -- (11.69)%
Highest contract charge 0.60% Class A $273.70 -- -- -- (12.23)%
All contract charges -- 202 $ 33,764 1.08% --
2017 Lowest contract charge 0.00% Class A $457.47 -- -- -- 15.48%
Highest contract charge 0.60% Class A $311.82 -- -- -- 14.79%
All contract charges -- 168 $ 38,774 0.93% --
2016 Lowest contract charge 0.00% Class A $396.14 -- -- -- 19.91%
Highest contract charge 0.60% Class A $271.64 -- -- -- 19.19%
All contract charges -- 149 $ 32,505 1.09% --
2015 Lowest contract charge 0.00% Class A $330.36 -- -- -- (2.86)%
Highest contract charge 0.60% Class A $227.90 -- -- -- (3.44)%
All contract charges -- 141 $ 28,395 0.86% --
2014 Lowest contract charge 0.00% Class A $340.09 -- -- -- 8.99%
Highest contract charge 0.60% Class A $236.02 -- -- -- 8.34%
All contract charges -- 129 $ 29,901 0.80% --
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class B $258.04 -- -- -- (11.69)%
Highest contract charge 0.90% Class B $218.63 -- -- -- (12.49)%
All contract charges -- 417 $100,436 1.08% --
2017 Lowest contract charge 0.00% Class B $292.20 -- -- -- 15.48%
Highest contract charge 0.90% Class B $249.83 -- -- -- 14.44%
All contract charges -- 432 $118,329 0.93% --
2016 Lowest contract charge 0.00% Class B $253.03 -- -- -- 19.91%
Highest contract charge 0.90% Class B $218.30 -- -- -- 18.84%
All contract charges -- 400 $ 94,440 1.09% --
2015 Lowest contract charge 0.00% Class B $211.01 -- -- -- (2.86)%
Highest contract charge 0.90% Class B $183.70 -- -- -- (3.73)%
All contract charges -- 419 $ 82,531 0.86% --
2014 Lowest contract charge 0.00% Class B $217.22 -- -- -- 8.99%
Highest contract charge 0.90% Class B $190.82 -- -- -- 8.01%
All contract charges -- 427 $ 86,668 0.80% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class A $174.96 -- -- -- 1.27%
Highest contract charge 0.90% Class A $149.35 -- -- -- 0.36%
All contract charges -- 1,469 $101,491 1.25% --
2017 Lowest contract charge 0.00% Class A $172.76 -- -- -- 0.40%
Highest contract charge 0.90% Class A $148.82 -- -- -- (0.50)%
All contract charges -- 1,389 $100,524 0.39% --
2016 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $149.57 -- -- -- (0.89)%
All contract charges -- 1,609 $112,607 0.00% --
2015 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $150.92 -- -- -- (0.90)%
All contract charges -- 1,459 $116,349 0.00% --
2014 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $152.29 -- -- -- (0.90)%
All contract charges -- 1,156 $125,159 0.00% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class B $133.70 -- -- -- 1.27%
Highest contract charge 0.60% Class B $124.25 -- -- -- 0.66%
All contract charges -- 331 $ 42,439 1.25% --
2017 Lowest contract charge 0.00% Class B $132.02 -- -- -- 0.40%
Highest contract charge 0.60% Class B $123.43 -- -- -- (0.20)%
All contract charges -- 418 $ 53,555 0.39% --
|
FSA-143
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MONEY MARKET (CONTINUED)
2016 Lowest contract charge 0.00% Class B $131.49 -- -- -- --
Highest contract charge 0.60% Class B $123.68 -- -- -- (0.59)%
All contract charges -- 360 $45,810 0.00% --
2015 Lowest contract charge 0.00% Class B $131.49 -- -- -- (0.01)%
Highest contract charge 0.60% Class B $124.42 -- -- -- (0.60)%
All contract charges -- 343 $43,876 0.00% --
2014 Lowest contract charge 0.00% Class B $131.50 -- -- -- 0.01%
Highest contract charge 0.60% Class B $125.17 -- -- -- (0.60)%
All contract charges -- 330 $42,162 0.00% --
EQ/PIMCO REAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(t) $123.20 -- -- -- 0.40%
Highest contract charge 0.90% Class B(f)(t) $113.89 -- -- -- 0.23%
All contract charges -- 305 $24,169 0.46% --
EQ/PIMCO TOTAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(u) $129.93 -- -- -- 1.75%
Highest contract charge 0.90% Class B(f)(u) $120.11 -- -- -- 1.57%
All contract charges -- 735 $68,223 0.69% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class A $121.24 -- -- -- 0.97%
Highest contract charge 0.90% Class A $109.07 -- -- -- 0.05%
All contract charges -- 136 $15,866 1.99% --
2017 Lowest contract charge 0.00% Class A $120.08 -- -- -- 1.88%
Highest contract charge 0.90% Class A $109.02 -- -- -- 0.97%
All contract charges -- 138 $15,815 1.32% --
2016 Lowest contract charge 0.00% Class A $117.86 -- -- -- 1.99%
Highest contract charge 0.90% Class A $107.97 -- -- -- 1.08%
All contract charges -- 125 $14,261 1.00% --
2015 Lowest contract charge 0.00% Class A $115.56 -- -- -- (0.28)%
Highest contract charge 0.90% Class A $106.82 -- -- -- (1.17)%
All contract charges -- 145 $16,282 0.47% --
2014 Lowest contract charge 0.00% Class A $115.88 -- -- -- (0.09)%
Highest contract charge 0.90% Class A $108.09 -- -- -- (0.99)%
All contract charges -- 156 $17,494 0.38% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class B $124.24 -- -- -- 0.95%
Highest contract charge 0.60% Class B $112.39 -- -- -- 0.35%
All contract charges -- 145 $17,517 1.99% --
2017 Lowest contract charge 0.00% Class B $123.07 -- -- -- 1.90%
Highest contract charge 0.60% Class B $112.00 -- -- -- 1.28%
All contract charges -- 146 $17,454 1.32% --
2016 Lowest contract charge 0.00% Class B $120.78 -- -- -- 1.98%
Highest contract charge 0.60% Class B $110.58 -- -- -- 1.38%
All contract charges -- 142 $16,743 1.00% --
2015 Lowest contract charge 0.00% Class B $118.43 -- -- -- (0.27)%
Highest contract charge 0.60% Class B $109.08 -- -- -- (0.87)%
All contract charges -- 153 $17,504 0.47% --
2014 Lowest contract charge 0.00% Class B $118.75 -- -- -- (0.09)%
Highest contract charge 0.60% Class B $110.04 -- -- -- (0.69)%
All contract charges -- 165 $19,037 0.38% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class A $257.31 -- -- -- 0.12%
Highest contract charge 0.90% Class A $193.19 -- -- -- (0.79)%
All contract charges -- 163 $22,879 1.68% --
2017 Lowest contract charge 0.00% Class A $257.00 -- -- -- 1.39%
Highest contract charge 0.90% Class A $194.72 -- -- -- 0.48%
All contract charges -- 173 $25,722 1.17% --
|
FSA-144
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/QUALITY BOND PLUS (CONTINUED)
2016 Lowest contract charge 0.00% Class A $253.48 -- -- -- 1.18%
Highest contract charge 0.90% Class A $193.79 -- -- -- 0.27%
All contract charges -- 203 $36,245 1.15% --
2015 Lowest contract charge 0.00% Class A $250.53 -- -- -- 0.22%
Highest contract charge 0.90% Class A $193.27 -- -- -- (0.68)%
All contract charges -- 208 $38,216 1.06% --
2014 Lowest contract charge 0.00% Class A $249.97 -- -- -- 2.90%
Highest contract charge 0.90% Class A $194.59 -- -- -- 1.98%
All contract charges -- 222 $41,887 0.99% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class B $173.62 -- -- -- 0.12%
Highest contract charge 0.60% Class B $154.00 -- -- -- (0.48)%
All contract charges -- 116 $18,748 1.68% --
2017 Lowest contract charge 0.00% Class B $173.41 -- -- -- 1.39%
Highest contract charge 0.60% Class B $154.75 -- -- -- 0.79%
All contract charges -- 122 $19,553 1.17% --
2016 Lowest contract charge 0.00% Class B $171.04 -- -- -- 1.18%
Highest contract charge 0.60% Class B $153.54 -- -- -- 0.57%
All contract charges -- 129 $20,541 1.15% --
2015 Lowest contract charge 0.00% Class B $169.05 -- -- -- 0.23%
Highest contract charge 0.60% Class B $152.67 -- -- -- (0.38)%
All contract charges -- 132 $20,722 1.06% --
2014 Lowest contract charge 0.00% Class B $168.67 -- -- -- 2.90%
Highest contract charge 0.60% Class B $153.25 -- -- -- 2.29%
All contract charges -- 137 $21,519 0.99% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class A $457.91 -- -- -- (11.31)%
Highest contract charge 0.90% Class A $349.48 -- -- -- (12.11)%
All contract charges -- 219 $47,905 0.96% --
2017 Lowest contract charge 0.00% Class A $516.30 -- -- -- 14.01%
Highest contract charge 0.90% Class A $397.65 -- -- -- 12.99%
All contract charges -- 211 $56,792 1.08% --
2016 Lowest contract charge 0.00% Class A $452.86 -- -- -- 20.53%
Highest contract charge 0.90% Class A $351.94 -- -- -- 19.45%
All contract charges -- 182 $49,667 1.17% --
2015 Lowest contract charge 0.00% Class A $375.73 -- -- -- (4.57)%
Highest contract charge 0.90% Class A $294.64 -- -- -- (5.43)%
All contract charges -- 175 $43,006 0.92% --
2014 Lowest contract charge 0.00% Class A $393.71 -- -- -- 4.85%
Highest contract charge 0.90% Class A $311.55 -- -- -- 3.91%
All contract charges -- 163 $45,618 0.80% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class B $332.45 -- -- -- (11.31)%
Highest contract charge 0.90% Class B $305.45 -- -- -- (12.11)%
All contract charges -- 125 $41,433 0.96% --
2017 Lowest contract charge 0.00% Class B $374.84 -- -- -- 14.01%
Highest contract charge 0.90% Class B $347.55 -- -- -- 12.99%
All contract charges -- 120 $44,655 1.08% --
2016 Lowest contract charge 0.00% Class B $328.79 -- -- -- 20.53%
Highest contract charge 0.90% Class B $307.60 -- -- -- 19.45%
All contract charges -- 111 $36,249 1.17% --
2015 Lowest contract charge 0.00% Class B $272.79 -- -- -- (4.57)%
Highest contract charge 0.90% Class B $257.52 -- -- -- (5.43)%
All contract charges -- 104 $28,328 0.92% --
2014 Lowest contract charge 0.00% Class B $285.84 -- -- -- 4.85%
Highest contract charge 0.90% Class B $272.30 -- -- -- 3.90%
All contract charges -- 99 $28,159 0.80% --
|
FSA-145
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class A $250.49 -- -- -- (1.61)%
Highest contract charge 0.60% Class A $233.23 -- -- -- (2.21)%
All contract charges -- 353 $ 15,577 0.00% --
2017 Lowest contract charge 0.00% Class A $254.60 -- -- -- 33.37%
Highest contract charge 0.60% Class A $238.50 -- -- -- 32.57%
All contract charges -- 229 $ 10,385 0.00% --
2016 Lowest contract charge 0.00% Class A $190.90 -- -- -- 1.34%
Highest contract charge 0.60% Class A $179.91 -- -- -- 0.74%
All contract charges -- 164 $ 5,664 0.00% --
2015 Lowest contract charge 0.00% Class A $188.38 -- -- -- 10.23%
Highest contract charge 0.60% Class A $178.59 -- -- -- 9.56%
All contract charges -- 125 $ 4,398 0.00% --
2014 Lowest contract charge 0.00% Class A $170.90 -- -- -- 8.64%
Highest contract charge 0.60% Class A $163.01 -- -- -- 7.99%
All contract charges -- 55 $ 2,411 0.00% --
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class B $293.39 -- -- -- (1.62)%
Highest contract charge 0.90% Class B $222.42 -- -- -- (2.51)%
All contract charges -- 390 $ 98,799 0.00% --
2017 Lowest contract charge 0.00% Class B $298.21 -- -- -- 33.37%
Highest contract charge 0.90% Class B $228.14 -- -- -- 32.17%
All contract charges -- 394 $101,528 0.00% --
2016 Lowest contract charge 0.00% Class B $223.60 -- -- -- 1.34%
Highest contract charge 0.90% Class B $172.61 -- -- -- 0.43%
All contract charges -- 375 $ 72,640 0.00% --
2015 Lowest contract charge 0.00% Class B $220.65 -- -- -- 10.23%
Highest contract charge 0.90% Class B $171.87 -- -- -- 9.23%
All contract charges -- 416 $ 79,230 0.00% --
2014 Lowest contract charge 0.00% Class B $200.18 -- -- -- 8.64%
Highest contract charge 0.90% Class B $157.34 -- -- -- 7.66%
All contract charges -- 360 $ 62,179 0.00% --
EQ/T. ROWE PRICE HEALTH SCIENCES
2018 Lowest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
Highest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
All contract charges -- 134 $ 7,851 0.00% --
EQ/UBS GROWTH & INCOME
2018 Lowest contract charge 0.00% Class B $240.25 -- -- -- (13.42)%
Highest contract charge 0.90% Class B $150.36 -- -- -- (14.20)%
All contract charges -- 60 $ 11,348 0.32% --
2017 Lowest contract charge 0.00% Class B $277.48 -- -- -- 21.28%
Highest contract charge 0.90% Class B $175.24 -- -- -- 20.19%
All contract charges -- 76 $ 16,096 0.29% --
2016 Lowest contract charge 0.00% Class B $228.79 -- -- -- 10.14%
Highest contract charge 0.90% Class B $145.80 -- -- -- 9.16%
All contract charges -- 63 $ 11,384 0.78% --
2015 Lowest contract charge 0.00% Class B $207.72 -- -- -- (1.42)%
Highest contract charge 0.90% Class B $133.57 -- -- -- (2.31)%
All contract charges -- 75 $ 12,167 0.58% --
2014 Lowest contract charge 0.00% Class B $210.72 -- -- -- 14.44%
Highest contract charge 0.90% Class B $136.73 -- -- -- 13.41%
All contract charges -- 67 $ 11,001 0.65% --
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
Highest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
All contract charges -- 14 $ 1,145 0.99% --
|
FSA-146
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO (CONTINUED)
2017 Lowest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
Highest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
All contract charges -- 15 $ 1,590 1.05% --
2016 Lowest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
Highest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
All contract charges -- 14 $ 1,383 1.33% --
2015 Lowest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
Highest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
All contract charges -- 15 $ 1,264 0.98% --
2014 Lowest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
Highest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
All contract charges -- 17 $ 1,482 0.81% --
FIDELITY(R)/ /VIP EQUITY-INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
Highest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
All contract charges -- 47 $ 1,605 2.14% --
2017 Lowest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
Highest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
All contract charges -- 47 $ 1,798 1.52% --
2016 Lowest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
Highest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
All contract charges -- 42 $ 1,580 2.59% --
2015 Lowest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
Highest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
All contract charges -- 30 $ 1,051 3.14% --
2014 Lowest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
Highest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
All contract charges -- 25 $ 1,007 2.47% --
FIDELITY(R)/ /VIP GOVERNMENT MONEY MARKET PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
Highest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
All contract charges -- 105 $ 1,467 1.43% --
2017 Lowest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
Highest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
All contract charges -- 96 $ 1,089 0.43% --
2016 Lowest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
All contract charges -- 73 $ 1,332 0.02% --
2015 Lowest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
All contract charges -- 67 $ 997 0.01% --
2014 Lowest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
All contract charges -- 73 $ 999 0.01% --
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $299.00 -- -- -- (9.19)%
Highest contract charge 0.90% Service Class 2 $203.46 -- -- -- (10.01)%
All contract charges -- 88 $ 8,795 0.19% --
2017 Lowest contract charge 0.00% Service Class 2 $329.27 -- -- -- 16.61%
Highest contract charge 0.90% Service Class 2 $226.10 -- -- -- 15.56%
All contract charges -- 85 $10,171 1.04% --
2016 Lowest contract charge 0.00% Service Class 2 $282.36 -- -- -- 15.81%
Highest contract charge 0.90% Service Class 2 $195.65 -- -- -- 14.77%
All contract charges -- 78 $ 8,609 1.67% --
|
FSA-147
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO (CONTINUED)
2015 Lowest contract charge 0.00% Service Class 2 $243.82 -- -- -- (2.54)%
Highest contract charge 0.90% Service Class 2 $170.47 -- -- -- (3.42)%
All contract charges -- 75 $ 7,288 1.89% --
2014 Lowest contract charge 0.00% Service Class 2 $250.17 -- -- -- 10.23%
Highest contract charge 0.90% Service Class 2 $176.50 -- -- -- 9.23%
All contract charges -- 68 $ 7,537 1.76% --
FIDELITY(R)/ /VIP HIGH INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
Highest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
All contract charges -- 60 $ 2,637 5.00% --
2017 Lowest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
Highest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
All contract charges -- 78 $ 4,071 5.22% --
2016 Lowest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
Highest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
All contract charges -- 72 $ 3,626 5.77% --
2015 Lowest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
Highest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
All contract charges -- 70 $ 3,378 5.88% --
2014 Lowest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
Highest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
All contract charges -- 72 $ 5,043 5.13% --
FIDELITY(R)/ /VIP INVESTMENT GRADE BOND PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
Highest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
All contract charges -- 771 $36,813 2.34% --
2017 Lowest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
Highest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
All contract charges -- 588 $16,362 1.80% --
2016 Lowest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
Highest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
All contract charges -- 449 $ 9,201 2.76% --
2015 Lowest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
Highest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
All contract charges -- 385 $ 7,133 2.64% --
2014 Lowest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
Highest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
All contract charges -- 262 $ 8,319 2.10% --
FIDELITY(R)/ /VIP MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $495.85 -- -- -- (14.77)%
Highest contract charge 0.90% Service Class 2 $174.36 -- -- -- (15.54)%
All contract charges -- 289 $28,415 0.41% --
2017 Lowest contract charge 0.00% Service Class 2 $581.78 -- -- -- 20.53%
Highest contract charge 0.90% Service Class 2 $206.45 -- -- -- 19.45%
All contract charges -- 238 $31,628 0.51% --
2016 Lowest contract charge 0.00% Service Class 2 $482.67 -- -- -- 11.92%
Highest contract charge 0.90% Service Class 2 $172.83 -- -- -- 10.92%
All contract charges -- 197 $24,006 0.34% --
2015 Lowest contract charge 0.00% Service Class 2 $431.25 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class 2 $155.81 -- -- -- (2.52)%
All contract charges -- 171 $20,947 0.18% --
2014 Lowest contract charge 0.00% Service Class 2 $438.39 -- -- -- 6.03%
Highest contract charge 0.90% Service Class 2 $159.83 -- -- -- 5.08%
All contract charges -- 160 $32,742 0.02% --
|
FSA-148
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP VALUE PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
Highest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
All contract charges -- 36 $ 1,304 0.96% --
2017 Lowest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
Highest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
All contract charges -- 15 $ 808 1.08% --
2016 Lowest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
Highest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
All contract charges -- 12 $ 732 1.07% --
2015 Lowest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
Highest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
All contract charges -- 12 $ 1,247 1.12% --
2014 Lowest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
Highest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
All contract charges -- 9 $ 1,519 1.19% --
FIDELITY(R)/ /VIP VALUE STRATEGIES PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
Highest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
All contract charges -- 7 $ 287 0.58% --
2017 Lowest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
Highest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
All contract charges -- 6 $ 529 1.32% --
2016 Lowest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
Highest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
All contract charges -- 3 $ 334 0.89% --
2015 Lowest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
Highest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
All contract charges -- 4 $ 333 0.90% --
2014 Lowest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
Highest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
All contract charges -- 3 $ 323 0.74% --
FRANKLIN MUTUAL SHARES VIP FUND
2018 Lowest contract charge 0.00% Class 2 $173.91 -- -- -- (9.07)%
Highest contract charge 0.90% Class 2 $160.77 -- -- -- (9.89)%
All contract charges -- 85 $ 8,151 2.27% --
2017 Lowest contract charge 0.00% Class 2 $191.25 -- -- -- 8.35%
Highest contract charge 0.90% Class 2 $178.41 -- -- -- 7.37%
All contract charges -- 101 $10,881 2.25% --
2016 Lowest contract charge 0.00% Class 2 $176.51 -- -- -- 16.06%
Highest contract charge 0.90% Class 2 $166.16 -- -- -- 15.02%
All contract charges -- 95 $10,495 1.93% --
2015 Lowest contract charge 0.00% Class 2 $152.09 -- -- -- (4.94)%
Highest contract charge 0.90% Class 2 $144.46 -- -- -- (5.79)%
All contract charges -- 102 $10,352 3.16% --
2014 Lowest contract charge 0.00% Class 2 $159.99 -- -- -- 7.12%
Highest contract charge 0.90% Class 2 $153.34 -- -- -- 6.15%
All contract charges -- 99 $11,542 2.06% --
FRANKLIN SMALL CAP VALUE VIP FUND
2018 Lowest contract charge 0.00% Class 2 $193.81 -- -- -- (12.87)%
Highest contract charge 0.90% Class 2 $179.16 -- -- -- (13.67)%
All contract charges -- 214 $11,102 0.90% --
2017 Lowest contract charge 0.00% Class 2 $222.45 -- -- -- 10.65%
Highest contract charge 0.90% Class 2 $207.52 -- -- -- 9.66%
All contract charges -- 199 $12,256 0.51% --
|
FSA-149
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FRANKLIN SMALL CAP VALUE VIP FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class 2 $201.04 -- -- -- 30.18%
Highest contract charge 0.90% Class 2 $189.24 -- -- -- 29.02%
All contract charges -- 158 $11,113 0.69% --
2015 Lowest contract charge 0.00% Class 2 $154.43 -- -- -- (7.38)%
Highest contract charge 0.90% Class 2 $146.68 -- -- -- (8.22)%
All contract charges -- 118 $ 5,236 0.63% --
2014 Lowest contract charge 0.00% Class 2 $166.74 -- -- -- 0.57%
Highest contract charge 0.90% Class 2 $159.81 -- -- -- (0.34)%
All contract charges -- 99 $ 5,650 0.61% --
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
2018 Lowest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
Highest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
All contract charges -- 583 $13,523 2.25% --
2017 Lowest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
Highest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
All contract charges -- 574 $14,465 1.49% --
2016 Lowest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
Highest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
All contract charges -- 554 $13,211 1.55% --
2015 Lowest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
Highest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
All contract charges -- 136 $ 3,477 1.62% --
2014 Lowest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
Highest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
All contract charges -- 49 $ 2,094 1.14% --
INVESCO V.I. MID CAP CORE EQUITY FUND
2018 Lowest contract charge 0.00% Series II $159.75 -- -- -- (11.60)%
Highest contract charge 0.90% Series II $147.68 -- -- -- (12.40)%
All contract charges -- 46 $ 3,493 0.13% --
2017 Lowest contract charge 0.00% Series II $180.71 -- -- -- 14.65%
Highest contract charge 0.90% Series II $168.58 -- -- -- 13.62%
All contract charges -- 37 $ 3,804 0.31% --
2016 Lowest contract charge 0.00% Series II $157.62 -- -- -- 13.16%
Highest contract charge 0.90% Series II $148.37 -- -- -- 12.15%
All contract charges -- 31 $ 3,382 0.00% --
2015 Lowest contract charge 0.00% Series II $139.29 -- -- -- (4.27)%
Highest contract charge 0.90% Series II $132.30 -- -- -- (5.14)%
All contract charges -- 29 $ 3,003 0.10% --
2014 Lowest contract charge 0.00% Series II $145.51 -- -- -- 4.17%
Highest contract charge 0.90% Series II $139.47 -- -- -- 3.23%
All contract charges -- 27 $ 3,519 0.00% --
INVESCO V.I. SMALL CAP EQUITY FUND
2018 Lowest contract charge 0.00% Series II $175.15 -- -- -- (15.27)%
Highest contract charge 0.90% Series II $161.91 -- -- -- (16.04)%
All contract charges -- 49 $ 5,092 0.00% --
2017 Lowest contract charge 0.00% Series II $206.72 -- -- -- 13.73%
Highest contract charge 0.90% Series II $192.84 -- -- -- 12.71%
All contract charges -- 39 $ 5,917 0.00% --
2016 Lowest contract charge 0.00% Series II $181.77 -- -- -- 11.84%
Highest contract charge 0.90% Series II $171.10 -- -- -- 10.83%
All contract charges -- 32 $ 4,613 0.00% --
2015 Lowest contract charge 0.00% Series II $162.53 -- -- -- (5.74)%
Highest contract charge 0.90% Series II $154.38 -- -- -- (6.59)%
All contract charges -- 34 $ 4,376 0.00% --
2014 Lowest contract charge 0.00% Series II $172.43 -- -- -- 2.08%
Highest contract charge 0.90% Series II $165.27 -- -- -- 1.17%
All contract charges -- 30 $ 4,096 0.00% --
|
FSA-150
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
IVY VIP GLOBAL EQUITY INCOME
2018 Lowest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
Highest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
All contract charges -- 29 $ 521 1.72% --
2017 Lowest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
Highest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
All contract charges -- 30 $ 1,020 1.15% --
2016 Lowest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
Highest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
All contract charges -- 26 $ 744 1.39% --
2015 Lowest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
Highest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
All contract charges -- 25 $ 524 1.27% --
2014 Lowest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
Highest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
All contract charges -- 27 $ 701 1.13% --
IVY VIP HIGH INCOME
2018 Lowest contract charge 0.00% Class II $119.67 -- -- -- (2.11)%
Highest contract charge 0.90% Class II $113.71 -- -- -- (3.00)%
All contract charges -- 722 $35,498 6.23% --
2017 Lowest contract charge 0.00% Class II $122.25 -- -- -- 6.68%
Highest contract charge 0.90% Class II $117.23 -- -- -- 5.73%
All contract charges -- 556 $32,857 5.40% --
2016 Lowest contract charge 0.00% Class II $114.60 -- -- -- 16.19%
Highest contract charge 0.90% Class II $110.88 -- -- -- 15.14%
All contract charges -- 463 $28,761 6.74% --
2015 Lowest contract charge 0.00% Class II $ 98.63 -- -- -- (6.51)%
Highest contract charge 0.90% Class II $ 96.30 -- -- -- (7.35)%
All contract charges -- 369 $20,390 6.02% --
2014 Lowest contract charge 0.00% Class II $105.50 -- -- -- 1.91%
Highest contract charge 0.90% Class II $103.94 -- -- -- 0.99%
All contract charges -- 230 $17,934 4.14% --
IVY VIP SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class II $192.42 -- -- -- (4.11)%
Highest contract charge 0.90% Class II $177.87 -- -- -- (4.98)%
All contract charges -- 98 $12,355 0.38% --
2017 Lowest contract charge 0.00% Class II $200.67 -- -- -- 23.12%
Highest contract charge 0.90% Class II $187.20 -- -- -- 22.01%
All contract charges -- 81 $12,406 0.00% --
2016 Lowest contract charge 0.00% Class II $162.99 -- -- -- 2.91%
Highest contract charge 0.90% Class II $153.43 -- -- -- 1.99%
All contract charges -- 72 $ 8,691 0.00% --
2015 Lowest contract charge 0.00% Class II $158.38 -- -- -- 1.88%
Highest contract charge 0.90% Class II $150.43 -- -- -- 0.97%
All contract charges -- 75 $ 8,951 0.00% --
2014 Lowest contract charge 0.00% Class II $155.45 -- -- -- 1.59%
Highest contract charge 0.90% Class II $148.99 -- -- -- 0.68%
All contract charges -- 49 $ 5,917 0.00% --
MFS(R)/ /INVESTORS TRUST SERIES
2018 Lowest contract charge 0.00% Service Class $218.20 -- -- -- (5.71)%
Highest contract charge 0.90% Service Class $201.71 -- -- -- (6.56)%
All contract charges -- 14 $ 3,162 0.42% --
2017 Lowest contract charge 0.00% Service Class $231.41 -- -- -- 23.02%
Highest contract charge 0.90% Service Class $215.88 -- -- -- 21.92%
All contract charges -- 18 $ 4,027 0.57% --
|
FSA-151
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MFS(R)/ /INVESTORS TRUST SERIES (CONTINUED)
2016 Lowest contract charge 0.00% Service Class $188.10 -- -- -- 8.32%
Highest contract charge 0.80% Service Class $178.26 -- -- -- 7.45%
All contract charges -- 15 $ 2,618 0.57% --
2015 Lowest contract charge 0.00% Service Class $173.66 -- -- -- (0.05)%
Highest contract charge 0.80% Service Class $165.90 -- -- -- (0.84)%
All contract charges -- 13 $ 2,199 0.70% --
2014 Lowest contract charge 0.00% Service Class $173.74 -- -- -- 10.71%
Highest contract charge 0.80% Service Class $167.31 -- -- -- 9.83%
All contract charges -- 12 $ 2,089 0.80% --
MFS(R)/ /MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO
2018 Lowest contract charge 0.00% Service Class $243.20 -- -- -- 0.57%
Highest contract charge 0.90% Service Class $224.83 -- -- -- (0.33)%
All contract charges -- 26 $ 5,987 0.32% --
2017 Lowest contract charge 0.00% Service Class $241.81 -- -- -- 28.10%
Highest contract charge 0.90% Service Class $225.58 -- -- -- 26.95%
All contract charges -- 20 $ 4,741 0.41% --
2016 Lowest contract charge 0.00% Service Class $188.77 -- -- -- 5.84%
Highest contract charge 0.90% Service Class $177.69 -- -- -- 4.89%
All contract charges -- 19 $ 3,765 0.40% --
2015 Lowest contract charge 0.00% Service Class(b) $178.35 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class(b) $169.40 -- -- -- (2.31)%
All contract charges -- 13 $ 2,155 0.46% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class A $390.01 -- -- -- (0.21)%
Highest contract charge 0.90% Class A $380.73 -- -- -- (1.11)%
All contract charges -- 442 $396,908 0.13% --
2017 Lowest contract charge 0.00% Class A $390.83 -- -- -- 30.35%
Highest contract charge 0.90% Class A $385.02 -- -- -- 29.18%
All contract charges -- 466 $423,844 0.16% --
2016 Lowest contract charge 0.00% Class A $299.83 -- -- -- 3.44%
Highest contract charge 0.90% Class A $298.04 -- -- -- 2.51%
All contract charges -- 498 $351,429 0.53% --
2015 Lowest contract charge 0.00% Class A $289.86 -- -- -- 3.99%
Highest contract charge 0.90% Class A $290.74 -- -- -- 3.06%
All contract charges -- 542 $373,360 0.16% --
2014 Lowest contract charge 0.00% Class A $278.73 -- -- -- 10.66%
Highest contract charge 0.90% Class A $282.12 -- -- -- 9.67%
All contract charges -- 585 $389,941 0.10% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class B $198.63 -- -- -- (0.21)%
Highest contract charge 0.60% Class B $177.24 -- -- -- (0.81)%
All contract charges -- 168 $ 31,185 0.13% --
2017 Lowest contract charge 0.00% Class B $199.05 -- -- -- 30.35%
Highest contract charge 0.60% Class B $178.69 -- -- -- 29.57%
All contract charges -- 175 $ 32,450 0.16% --
2016 Lowest contract charge 0.00% Class B $152.70 -- -- -- 3.43%
Highest contract charge 0.60% Class B $137.91 -- -- -- 2.82%
All contract charges -- 178 $ 25,303 0.53% --
2015 Lowest contract charge 0.00% Class B $147.63 -- -- -- 3.99%
Highest contract charge 0.60% Class B $134.13 -- -- -- 3.37%
All contract charges -- 194 $ 26,699 0.16% --
2014 Lowest contract charge 0.00% Class B $141.96 -- -- -- 10.66%
Highest contract charge 0.60% Class B $129.76 -- -- -- 10.00%
All contract charges -- 203 $ 27,000 0.10% --
|
FSA-152
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class A $178.30 -- -- -- (0.40)%
Highest contract charge 0.60% Class A $169.75 -- -- -- (1.00)%
All contract charges -- 187 $19,048 2.71% --
2017 Lowest contract charge 0.00% Class A $179.01 -- -- -- 3.00%
Highest contract charge 0.60% Class A $171.47 -- -- -- 2.38%
All contract charges -- 180 $20,013 2.08% --
2016 Lowest contract charge 0.00% Class A $173.80 -- -- -- 2.64%
Highest contract charge 0.60% Class A $167.48 -- -- -- 2.02%
All contract charges -- 169 $20,450 2.08% --
2015 Lowest contract charge 0.00% Class A $169.33 -- -- -- 0.12%
Highest contract charge 0.60% Class A $164.16 -- -- -- (0.47)%
All contract charges -- 159 $20,844 1.92% --
2014 Lowest contract charge 0.00% Class A $169.12 -- -- -- 3.75%
Highest contract charge 0.60% Class A $164.94 -- -- -- 3.13%
All contract charges -- 167 $22,443 2.07% --
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class B $183.79 -- -- -- (0.40)%
Highest contract charge 0.90% Class B $157.61 -- -- -- (1.30)%
All contract charges -- 236 $40,858 2.71% --
2017 Lowest contract charge 0.00% Class B $184.52 -- -- -- 3.00%
Highest contract charge 0.90% Class B $159.68 -- -- -- 2.08%
All contract charges -- 256 $44,615 2.08% --
2016 Lowest contract charge 0.00% Class B $179.14 -- -- -- 2.64%
Highest contract charge 0.90% Class B $156.43 -- -- -- 1.72%
All contract charges -- 292 $49,249 2.08% --
2015 Lowest contract charge 0.00% Class B $174.54 -- -- -- 0.13%
Highest contract charge 0.90% Class B $153.79 -- -- -- (0.77)%
All contract charges -- 304 $50,153 1.92% --
2014 Lowest contract charge 0.00% Class B $174.31 -- -- -- 3.74%
Highest contract charge 0.90% Class B $154.99 -- -- -- 2.81%
All contract charges -- 327 $53,881 2.07% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class A $457.16 -- -- -- (5.77)%
Highest contract charge 0.60% Class A $252.28 -- -- -- (6.34)%
All contract charges -- 25 $11,157 0.00% --
2017 Lowest contract charge 0.00% Class A $485.17 -- -- -- 26.67%
Highest contract charge 0.60% Class A $269.36 -- -- -- 25.91%
All contract charges -- 27 $12,687 0.00% --
2016 Lowest contract charge 0.00% Class A $383.02 -- -- -- 6.79%
Highest contract charge 0.60% Class A $213.93 -- -- -- 6.15%
All contract charges -- 28 $10,529 0.10% --
2015 Lowest contract charge 0.00% Class A $358.68 -- -- -- (1.51)%
Highest contract charge 0.60% Class A $201.54 -- -- -- (2.10)%
All contract charges -- 31 $10,804 0.00% --
2014 Lowest contract charge 0.00% Class A $364.19 -- -- -- 4.85%
Highest contract charge 0.60% Class A $205.87 -- -- -- 4.22%
All contract charges -- 33 $11,863 0.00% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B $403.71 -- -- -- (5.77)%
Highest contract charge 0.90% Class B $223.50 -- -- -- (6.63)%
All contract charges -- 58 $15,468 0.00% --
2017 Lowest contract charge 0.00% Class B $428.45 -- -- -- 26.66%
Highest contract charge 0.90% Class B $239.36 -- -- -- 25.52%
All contract charges -- 60 $16,955 0.00% --
|
FSA-153
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER MID CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $338.26 -- -- -- 6.78%
Highest contract charge 0.90% Class B $190.69 -- -- -- 5.82%
All contract charges -- 88 $19,160 0.10% --
2015 Lowest contract charge 0.00% Class B $316.79 -- -- -- (1.52)%
Highest contract charge 0.90% Class B $180.20 -- -- -- (2.41)%
All contract charges -- 97 $19,711 0.00% --
2014 Lowest contract charge 0.00% Class B $321.69 -- -- -- 4.86%
Highest contract charge 0.90% Class B $184.65 -- -- -- 3.92%
All contract charges -- 103 $21,132 0.00% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class A $400.77 -- -- -- (12.75)%
Highest contract charge 0.60% Class A $240.23 -- -- -- (13.27)%
All contract charges -- 35 $ 8,377 0.75% --
2017 Lowest contract charge 0.00% Class A $459.32 -- -- -- 9.28%
Highest contract charge 0.60% Class A $277.00 -- -- -- 8.63%
All contract charges -- 35 $10,131 0.76% --
2016 Lowest contract charge 0.00% Class A $420.32 -- -- -- 19.09%
Highest contract charge 0.60% Class A $255.00 -- -- -- 18.38%
All contract charges -- 39 $10,599 1.02% --
2015 Lowest contract charge 0.00% Class A $352.93 -- -- -- (5.54)%
Highest contract charge 0.60% Class A $215.41 -- -- -- (6.11)%
All contract charges -- 40 $ 9,746 0.68% --
2014 Lowest contract charge 0.00% Class A $373.64 -- -- -- 5.34%
Highest contract charge 0.60% Class A $229.42 -- -- -- 4.70%
All contract charges -- 43 $11,401 0.44% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class B $262.46 -- -- -- (12.75)%
Highest contract charge 0.90% Class B $225.07 -- -- -- (13.53)%
All contract charges -- 103 $24,756 0.75% --
2017 Lowest contract charge 0.00% Class B $300.80 -- -- -- 9.27%
Highest contract charge 0.90% Class B $260.30 -- -- -- 8.29%
All contract charges -- 111 $30,843 0.76% --
2016 Lowest contract charge 0.00% Class B $275.28 -- -- -- 19.08%
Highest contract charge 0.90% Class B $240.37 -- -- -- 18.01%
All contract charges -- 144 $36,624 1.02% --
2015 Lowest contract charge 0.00% Class B $231.18 -- -- -- (5.55)%
Highest contract charge 0.90% Class B $203.69 -- -- -- (6.40)%
All contract charges -- 161 $34,517 0.68% --
2014 Lowest contract charge 0.00% Class B $244.76 -- -- -- 5.34%
Highest contract charge 0.90% Class B $217.62 -- -- -- 4.39%
All contract charges -- 171 $39,089 0.44% --
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class A $723.43 -- -- -- 2.29%
Highest contract charge 0.60% Class A $365.30 -- -- -- 1.68%
All contract charges -- 68 $23,252 0.16% --
2017 Lowest contract charge 0.00% Class A $707.20 -- -- -- 39.12%
Highest contract charge 0.60% Class A $359.27 -- -- -- 38.29%
All contract charges -- 42 $22,064 0.00% --
2016 Lowest contract charge 0.00% Class A $508.34 -- -- -- 8.95%
Highest contract charge 0.60% Class A $259.80 -- -- -- 8.30%
All contract charges -- 43 $17,008 0.01% --
2015 Lowest contract charge 0.00% Class A $466.60 -- -- -- 6.29%
Highest contract charge 0.60% Class A $239.90 -- -- -- 5.65%
All contract charges -- 45 $16,131 0.00% --
2014 Lowest contract charge 0.00% Class A $438.98 -- -- -- 13.55%
Highest contract charge 0.60% Class A $227.06 -- -- -- 12.86%
All contract charges -- 46 $16,479 0.00% --
|
FSA-154
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class B $588.13 -- -- -- 2.29%
Highest contract charge 0.90% Class B $310.88 -- -- -- 1.37%
All contract charges -- 293 $107,753 0.16% --
2017 Lowest contract charge 0.00% Class B $574.94 -- -- -- 39.12%
Highest contract charge 0.90% Class B $306.69 -- -- -- 37.88%
All contract charges -- 292 $105,528 0.00% --
2016 Lowest contract charge 0.00% Class B $413.27 -- -- -- 8.94%
Highest contract charge 0.90% Class B $222.44 -- -- -- 7.96%
All contract charges -- 284 $ 73,856 0.01% --
2015 Lowest contract charge 0.00% Class B $379.34 -- -- -- 6.29%
Highest contract charge 0.90% Class B $206.03 -- -- -- 5.34%
All contract charges -- 301 $ 71,400 0.00% --
2014 Lowest contract charge 0.00% Class B $356.88 -- -- -- 13.55%
Highest contract charge 0.90% Class B $195.59 -- -- -- 12.53%
All contract charges -- 331 $ 73,397 0.00% --
NATURAL RESOURCES PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
Highest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
All contract charges -- 92 $ 1,916 0.00% --
2017 Lowest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
Highest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
All contract charges -- 118 $ 4,277 0.00% --
2016 Lowest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
Highest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
All contract charges -- 102 $ 3,924 0.00% --
2015 Lowest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
Highest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
All contract charges -- 86 $ 2,626 0.00% --
2014 Lowest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
Highest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
All contract charges -- 141 $ 7,525 0.00% --
PIMCO COMMODITYREALRETURN(R)/ /STRATEGY PORTFOLIO
2018 Lowest contract charge 0.00% Advisor Class $ 62.55 -- -- -- (14.21)%
Highest contract charge 0.90% Advisor Class $ 57.82 -- -- -- (14.98)%
All contract charges -- 154 $ 9,531 1.97% --
2017 Lowest contract charge 0.00% Advisor Class $ 72.91 -- -- -- 2.06%
Highest contract charge 0.90% Advisor Class $ 68.01 -- -- -- 1.13%
All contract charges -- 147 $ 10,603 10.89% --
2016 Lowest contract charge 0.00% Advisor Class $ 71.44 -- -- -- 14.87%
Highest contract charge 0.90% Advisor Class $ 67.25 -- -- -- 13.85%
All contract charges -- 136 $ 9,580 1.02% --
2015 Lowest contract charge 0.00% Advisor Class $ 62.19 -- -- -- (25.66)%
Highest contract charge 0.90% Advisor Class $ 59.07 -- -- -- (26.34)%
All contract charges -- 132 $ 8,067 4.22% --
2014 Lowest contract charge 0.00% Advisor Class $ 83.66 -- -- -- (18.75)%
Highest contract charge 0.90% Advisor Class $ 80.19 -- -- -- (19.47)%
All contract charges -- 109 $ 9,010 0.27% --
T. ROWE PRICE EQUITY INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Class II $189.91 -- -- -- (9.69)%
Highest contract charge 0.90% Class II $175.55 -- -- -- (10.51)%
All contract charges -- 70 $ 13,050 1.80% --
2017 Lowest contract charge 0.00% Class II $210.29 -- -- -- 15.73%
Highest contract charge 0.90% Class II $196.17 -- -- -- 14.69%
All contract charges -- 68 $ 13,994 1.51% --
|
FSA-155
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
T. ROWE PRICE EQUITY INCOME PORTFOLIO (CONTINUED)
2016 Lowest contract charge 0.00% Class II $181.71 -- -- -- 18.86%
Highest contract charge 0.90% Class II $171.04 -- -- -- 17.79%
All contract charges -- 71 $12,645 1.79% --
2015 Lowest contract charge 0.00% Class II $152.88 -- -- -- (7.11)%
Highest contract charge 0.90% Class II $145.21 -- -- -- (7.94)%
All contract charges -- 115 $17,055 1.59% --
2014 Lowest contract charge 0.00% Class II $164.58 -- -- -- 7.11%
Highest contract charge 0.90% Class II $157.74 -- -- -- 6.14%
All contract charges -- 127 $20,537 1.50% --
TARGET 2015 ALLOCATION
2018 Lowest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
Highest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
All contract charges -- 47 $ 1,710 1.80% --
2017 Lowest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
Highest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
All contract charges -- 34 $ 1,892 1.51% --
2016 Lowest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
Highest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
All contract charges -- 14 $ 288 1.61% --
2015 Lowest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
Highest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
All contract charges -- 12 $ 223 2.33% --
2014 Lowest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
Highest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
All contract charges -- 2 $ 38 0.78% --
TARGET 2025 ALLOCATION
2018 Lowest contract charge 0.00% Class B $161.71 -- -- -- (6.15)%
Highest contract charge 0.80% Class B $106.39 -- -- -- (6.90)%
All contract charges -- 154 $ 9,626 1.77% --
2017 Lowest contract charge 0.00% Class B $172.30 -- -- -- 15.42%
Highest contract charge 0.80% Class B $114.28 -- -- -- 14.50%
All contract charges -- 119 $ 7,645 1.85% --
2016 Lowest contract charge 0.00% Class B $149.28 -- -- -- 7.41%
Highest contract charge 0.80% Class B(a) $ 99.81 -- -- -- 6.55%
All contract charges -- 69 $ 2,092 1.65% --
2015 Lowest contract charge 0.00% Class B $138.98 -- -- -- (2.04)%
Highest contract charge 0.60% Class B(a) $ 93.80 -- -- -- (5.65)%
All contract charges -- 49 $ 1,261 1.41% --
2014 Lowest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
Highest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
All contract charges -- 46 $ 915 1.55% --
TARGET 2035 ALLOCATION
2018 Lowest contract charge 0.00% Class B $167.54 -- -- -- (7.17)%
Highest contract charge 0.60% Class B $108.41 -- -- -- (7.73)%
All contract charges -- 83 $ 4,750 1.71% --
2017 Lowest contract charge 0.00% Class B $180.49 -- -- -- 17.77%
Highest contract charge 0.60% Class B $117.49 -- -- -- 17.06%
All contract charges -- 52 $ 3,313 1.79% --
2016 Lowest contract charge 0.00% Class B $153.26 -- -- -- 8.03%
Highest contract charge 0.60% Class B $100.37 -- -- -- 7.38%
All contract charges -- 30 $ 1,344 1.57% --
2015 Lowest contract charge 0.00% Class B $141.87 -- -- -- (2.03)%
Highest contract charge 0.60% Class B(a) $ 93.47 -- -- -- (5.98)%
All contract charges -- 24 $ 864 1.43% --
2014 Lowest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
Highest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
All contract charges -- 18 $ 934 1.40% --
|
FSA-156
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TARGET 2045 ALLOCATION
2018 Lowest contract charge 0.00% Class B $170.79 -- -- -- (7.98)%
Highest contract charge 0.60% Class B $109.25 -- -- -- (8.54)%
All contract charges -- 51 $ 2,829 1.88% --
2017 Lowest contract charge 0.00% Class B $185.61 -- -- -- 19.69%
Highest contract charge 0.60% Class B $119.45 -- -- -- 18.97%
All contract charges -- 28 $ 1,776 1.71% --
2016 Lowest contract charge 0.00% Class B $155.07 -- -- -- 8.69%
Highest contract charge 0.60% Class B $100.40 -- -- -- 8.04%
All contract charges -- 15 $ 753 1.65% --
2015 Lowest contract charge 0.00% Class B $142.67 -- -- -- (2.23)%
Highest contract charge 0.60% Class B(a) $ 92.93 -- -- -- (6.52)%
All contract charges -- 16 $ 571 1.91% --
2014 Lowest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
Highest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
All contract charges -- 9 $ 259 1.38% --
TARGET 2055 ALLOCATION
2018 Lowest contract charge 0.00% Class B $114.10 -- -- -- (8.79)%
Highest contract charge 0.60% Class B $111.61 -- -- -- (9.33)%
All contract charges -- 15 $ 937 1.82% --
2017 Lowest contract charge 0.00% Class B $125.09 -- -- -- 21.79%
Highest contract charge 0.60% Class B $123.10 -- -- -- 21.07%
All contract charges -- 8 $ 606 1.71% --
2016 Lowest contract charge 0.00% Class B $102.71 -- -- -- 9.51%
Highest contract charge 0.60% Class B(a) $101.68 -- -- -- 8.85%
All contract charges -- 2 $ 264 1.83% --
2015 Lowest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
Highest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
All contract charges -- -- $ 46 3.95% --
TEMPLETON DEVELOPING MARKETS VIP FUND
2018 Lowest contract charge 0.00% Class 2 $109.63 -- -- -- (15.80)%
Highest contract charge 0.90% Class 2 $101.35 -- -- -- (16.56)%
All contract charges -- 160 $17,140 0.80% --
2017 Lowest contract charge 0.00% Class 2 $130.20 -- -- -- 40.41%
Highest contract charge 0.90% Class 2 $121.46 -- -- -- 39.16%
All contract charges -- 137 $17,444 0.96% --
2016 Lowest contract charge 0.00% Class 2 $ 92.73 -- -- -- 17.44%
Highest contract charge 0.90% Class 2 $ 87.28 -- -- -- 16.39%
All contract charges -- 104 $ 9,563 0.81% --
2015 Lowest contract charge 0.00% Class 2 $ 78.96 -- -- -- (19.60)%
Highest contract charge 0.90% Class 2 $ 74.99 -- -- -- (20.33)%
All contract charges -- 101 $ 7,804 1.97% --
2014 Lowest contract charge 0.00% Class 2 $ 98.21 -- -- -- (8.39)%
Highest contract charge 0.90% Class 2 $ 94.13 -- -- -- (9.21)%
All contract charges -- 99 $ 9,492 1.48% --
TEMPLETON GLOBAL BOND VIP FUND
2018 Lowest contract charge 0.00% Class 2 $127.06 -- -- -- 1.94%
Highest contract charge 0.90% Class 2 $117.46 -- -- -- 1.01%
All contract charges -- 643 $46,400 0.00% --
2017 Lowest contract charge 0.00% Class 2 $124.64 -- -- -- 1.92%
Highest contract charge 0.90% Class 2 $116.28 -- -- -- 1.02%
All contract charges -- 586 $45,630 0.00% --
2016 Lowest contract charge 0.00% Class 2 $122.29 -- -- -- 2.94%
Highest contract charge 0.90% Class 2 $115.11 -- -- -- 2.01%
All contract charges -- 529 $41,472 0.00% --
|
FSA-157
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TEMPLETON GLOBAL BOND VIP FUND (CONTINUED)
2015 Lowest contract charge 0.00% Class 2 $118.80 -- -- -- (4.30)%
Highest contract charge 0.90% Class 2 $112.84 -- -- -- (5.17)%
All contract charges -- 529 $42,461 7.79% --
2014 Lowest contract charge 0.00% Class 2 $124.14 -- -- -- 1.83%
Highest contract charge 0.90% Class 2 $118.99 -- -- -- 0.92%
All contract charges -- 515 $47,540 5.01% --
TEMPLETON GROWTH VIP FUND
2018 Lowest contract charge 0.00% Class 2 $154.60 -- -- -- (14.85)%
Highest contract charge 0.90% Class 2 $142.91 -- -- -- (15.62)%
All contract charges -- 29 $ 4,401 1.97% --
2017 Lowest contract charge 0.00% Class 2 $181.56 -- -- -- 18.50%
Highest contract charge 0.90% Class 2 $169.37 -- -- -- 17.44%
All contract charges -- 30 $ 5,260 1.60% --
2016 Lowest contract charge 0.00% Class 2 $153.21 -- -- -- 9.62%
Highest contract charge 0.90% Class 2 $144.22 -- -- -- 8.64%
All contract charges -- 31 $ 4,575 2.03% --
2015 Lowest contract charge 0.00% Class 2 $139.77 -- -- -- (6.48)%
Highest contract charge 0.90% Class 2 $132.75 -- -- -- (7.33)%
All contract charges -- 33 $ 4,511 2.55% --
2014 Lowest contract charge 0.00% Class 2 $149.46 -- -- -- (2.82)%
Highest contract charge 0.90% Class 2 $143.25 -- -- -- (3.69)%
All contract charges -- 36 $ 5,379 1.34% --
VANECK VIP GLOBAL HARD ASSETS FUND
2018 Lowest contract charge 0.00% Class S Shares $ 59.79 -- -- -- (28.42)%
Highest contract charge 0.90% Class S Shares $ 55.27 -- -- -- (29.07)%
All contract charges -- 143 $ 8,441 0.00% --
2017 Lowest contract charge 0.00% Class S Shares $ 83.53 -- -- -- (1.97)%
Highest contract charge 0.90% Class S Shares $ 77.92 -- -- -- (2.86)%
All contract charges -- 151 $12,427 0.00% --
2016 Lowest contract charge 0.00% Class S Shares $ 85.21 -- -- -- 43.40%
Highest contract charge 0.90% Class S Shares $ 80.21 -- -- -- 42.14%
All contract charges -- 155 $12,986 0.38% --
2015 Lowest contract charge 0.00% Class S Shares $ 59.42 -- -- -- (33.62)%
Highest contract charge 0.90% Class S Shares $ 56.43 -- -- -- (34.23)%
All contract charges -- 147 $ 8,559 0.03% --
2014 Lowest contract charge 0.00% Class S Shares $ 89.52 -- -- -- (19.34)%
Highest contract charge 0.90% Class S Shares $ 85.80 -- -- -- (20.07)%
All contract charges -- 127 $11,178 0.00% --
VANGUARD VARIABLE INSURANCE FUND--EQUITY INDEX PORTFOLIO
2018 Lowest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
Highest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
All contract charges -- 48 $13,016 1.56% --
2017 Lowest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
Highest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
All contract charges -- 31 $ 8,898 1.78% --
2016 Lowest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
Highest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
All contract charges -- 31 $ 7,243 2.38% --
2015 Lowest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
Highest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
All contract charges -- 37 $ 7,894 1.66% --
2014 Lowest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
Highest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
All contract charges -- 36 $ 7,580 1.67% --
|
FSA-158
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 2018
8. Financial Highlights (Concluded)
(a)Units were made available on May 26, 2015.
(b)Units were made available on March 27, 2015.
(c)Units were made available on May 20, 2016.
(d)Units were made available on May 19, 2017.
(e)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a
merger on May 19, 2017.
(f)Units were made available on October 22, 2018.
(g)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap
Value Fund due to a substitution on October 22, 2018.
(h)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
(i)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund
due to a substitution on October 22, 2018.
(j)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund
due to a substitution on October 22, 2018.
(k)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value
Fund due to a substitution on October 22, 2018.
(l)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate
Fund due to a substitution on October 22, 2018.
(m)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
(n)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(o)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a
substitution on October 22, 2018.
(p)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due
to a substitution on October 22, 2018.
(q)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(r)EQ/MFS International Value replaced MFS(R) International Value Portfolio
due to a substitution on October 22, 2018.
(s)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
(t)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(u)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
(v)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the Variable Investment
Option from the Portfolio, divided by the average daily net assets. This
ratio excludes those expenses, such as asset-based charges, that result in
direct reductions in the unit value. The recognition of dividend income by
the Variable Investment Option is affected by the timing of the
declaration of dividends by the Portfolio in which the Variable Investment
Option invests. For those Variable Investment Options with less than a
year of operations, this ratio is not annualized but calculated from the
effective date through the end of the reporting period.
** This ratio represents the total return for the periods indicated,
including changes in the value of the Portfolio, and expenses assessed
through the reduction of unit value. This ratio does not include any
expenses, such as premium and withdrawal charges, as applicable, or
expenses assessed through the redemption of units. The total return would
have been lower had such expenses been included in the calculation.
Variable Investment Options with a date notation indicate the effective
date of the Variable Investment Option, without consideration if there
were units outstanding as of such date. The total return is calculated for
each period indicated from the effective date through the end of the
reporting period. Where there are no units outstanding at period-end, the
total return is calculated using the current offering price of the unit.
For those Variable Investment Options with less than a year of operations,
the total return is not annualized but calculated from the effective date
through the end of the reporting period.
9. Subsequent Events
All material subsequent transactions and events have been evaluated for the
period from December 31, 2018 through April 15, 2019, the date on which the
financial statements were issued. It has been determined that there are no
transactions or events that require adjustment or disclosure in the
financial statements.
FSA-159
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
AXA EQUITABLE LIFE INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm....................................................... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, as of December 31, 2018 and 2017................................................ F-2
Consolidated Statements of Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016............... F-4
Consolidated Statements of Comprehensive Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016. F-5
Consolidated Statements of Equity, for the Years Ended December 31, 2018, 2017 and 2016...................... F-6
Consolidated Statements of Cash Flows, for the Years Ended December 31, 2018, 2017 and 2016.................. F-7
Notes to Consolidated Financial Statements
Note 1 -- Organization..................................................................................... F-10
Note 2 -- Significant Accounting Policies.................................................................. F-10
Note 3 -- Investments...................................................................................... F-26
Note 4 -- Intangible Assets................................................................................ F-41
Note 5 -- Closed Block..................................................................................... F-41
Note 6 -- DAC and Policyholder Bonus Interest Credits...................................................... F-43
Note 7 -- Fair Value Disclosures........................................................................... F-44
Note 8 -- Insurance Liabilities............................................................................ F-56
Note 9 -- Revenue Recognition.............................................................................. F-59
Note 10 -- Reinsurance Agreements.......................................................................... F-59
Note 11 -- Long-term Debt.................................................................................. F-60
Note 12 -- Related Party Transactions...................................................................... F-60
Note 13 -- Employee Benefit Plans.......................................................................... F-64
Note 14 -- Share-Based and Other Compensation Programs..................................................... F-64
Note 15 -- Income Taxes.................................................................................... F-69
Note 16 -- Accumulated Other Comprehensive Income (Loss)................................................... F-71
Note 17 -- Commitments and Contingent Liabilities.......................................................... F-72
Note 18 -- Insurance Group Statutory Financial Information................................................. F-74
Note 19 -- Discontinued Operations......................................................................... F-75
Note 20 -- Revision of Prior Period Financial Statements................................................... F-77
Note 21 -- Quarterly Results of Operations (Unaudited)..................................................... F-83
Note 22 -- Subsequent Events............................................................................... F-99
Audited Consolidated Financial Statement Schedules
Schedule I -- Summary of Investments -- Other than Investments in Related Parties, as of December 31, 2018... F-100
Schedule IV -- Reinsurance, as of and for the Years Ended December 31, 2018, 2017 and 2016................... F-101
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholder of
AXA Equitable Life Insurance Company:
OPINION ON THE FINANCIAL STATEMENTS
We have audited the accompanying consolidated balance sheets of AXA Equitable
Life Insurance Company and its subsidiaries (the Company) as of December 31,
2018 and 2017, and the related consolidated statements of income (loss),
comprehensive income (loss), equity and cash flows for each of the three years
in the period ended December 31, 2018, including the related notes and
financial statement schedules listed in the accompanying index (collectively
referred to as the consolidated financial statements). In our opinion, the
consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2018 and 2017, and the
results of its operations and its cash flows for each of the three years in the
period ended December 31, 2018 in conformity with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 2 to the consolidated financial statements, the Company
changed in 2018 the manner in which it accounts for certain income tax effects
originally recognized in accumulated other comprehensive income.
BASIS FOR OPINION
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's
consolidated financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in
accordance with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part
of our audits we are required to obtain an understanding of internal control
over financial reporting but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audits provide a reasonable basis for
our opinion.
/s/ PricewaterhouseCoopers LLP
New York, NY
March 28, 2019
|
We have served as the Company's auditor since 1993.
F-1
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
ASSETS
Investments:
Fixed maturities available for sale, at fair value
(amortized cost of $42,492 and $34,831)................ $ 41,915 $ 36,358
Mortgage loans on real estate (net of valuation
allowance of $7 and $8)................................ 11,818 10,935
Real estate held for production of income............... 52 390
Policy loans............................................ 3,267 3,315
Other equity investments................................ 1,144 1,264
Trading securities, at fair value....................... 15,166 12,277
Other invested assets................................... 1,554 1,830
--------- ---------
Total investments...................................... 74,916 66,369
Cash and cash equivalents................................. 2,622 2,400
Cash and securities segregated, at fair value............. -- 9
Deferred policy acquisition costs......................... 5,011 4,492
Amounts due from reinsurers............................... 3,124 5,079
Loans to affiliates....................................... 600 703
GMIB reinsurance contract asset, at fair value............ 1,991 10,488
Current and deferred income taxes......................... 438 --
Other assets.............................................. 2,763 4,018
Assets of disposed subsidiary............................. -- 9,835
Separate Accounts assets.................................. 108,487 122,537
--------- ---------
TOTAL ASSETS.............................................. $ 199,952 $ 225,930
========= =========
LIABILITIES
Policyholders' account balances........................... $ 46,403 $ 43,805
Future policy benefits and other
policyholders' liabilities.............................. 29,808 29,070
Broker-dealer related payables............................ 69 430
Securities sold under agreements to repurchase............ 573 1,887
Amounts due to reinsurers................................. 113 134
Long-term debt............................................ -- 203
Loans from affiliates..................................... 572 --
Current and deferred income taxes......................... -- 1,550
Other liabilities......................................... 1,460 1,242
Liabilities of disposed subsidiary........................ -- 4,954
Separate Accounts liabilities............................. 108,487 122,537
--------- ---------
Total Liabilities...................................... $ 187,485 $ 205,812
--------- ---------
Redeemable noncontrolling interest:
Continuing operations................................... $ 39 $ 24
Disposed subsidiary..................................... -- 602
--------- ---------
Redeemable noncontrolling interest..................... $ 39 $ 626
--------- ---------
Commitments and contingent liabilities (Note 17)
|
See Notes to the Consolidated Financial Statements.
F-2
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
(CONTINUED)
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
EQUITY
Equity attributable to AXA Equitable:
Common stock, $1.25 par value; 2,000,000 shares
authorized, issued and outstanding............. $ 2 $ 2
Capital in excess of par value.................. 7,807 6,859
Retained earnings............................... 5,098 8,938
Accumulated other comprehensive income (loss)... (491) 598
--------- ---------
Total equity attributable to AXA Equitable..... 12,416 16,397
--------- ---------
Noncontrolling interest........................... 12 3,095
--------- ---------
Total Equity................................... 12,428 19,492
--------- ---------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY............................. $ 199,952 $ 225,930
========= =========
|
See Notes to the Consolidated Financial Statements.
F-3
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
-------- --------- ---------
(IN MILLIONS)
REVENUES
Policy charges and fee income...................... $ 3,523 $ 3,294 $ 3,311
Premiums........................................... 862 904 880
Net derivative gains (losses)...................... (1,010) 894 (1,321)
Net investment income (loss)....................... 2,478 2,441 2,168
Investment gains (losses), net:
Total other-than-temporary impairment losses..... (37) (13) (65)
Other investment gains (losses), net............. 41 (112) 83
-------- --------- ---------
Total investment gains (losses), net............ 4 (125) 18
-------- --------- ---------
Investment management and service fees............. 1,029 1,007 951
Other income....................................... 65 41 36
-------- --------- ---------
Total revenues.................................. 6,951 8,456 6,043
-------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Policyholders' benefits............................ 3,005 3,473 2,771
Interest credited to policyholders'
account balances................................. 1,002 921 905
Compensation and benefits.......................... 422 327 364
Commissions and distribution related payments...... 620 628 635
Interest expense................................... 34 23 13
Amortization of deferred policy acquisition costs.. 431 900 642
Other operating costs and expenses................. 2,918 635 753
-------- --------- ---------
Total benefits and other deductions............. 8,432 6,907 6,083
-------- --------- ---------
Income (loss) from continuing operations, before
income taxes..................................... (1,481) 1,549 (40)
Income tax (expense) benefit from
continuing operations............................ 446 1,210 164
-------- --------- ---------
Net income (loss) from continuing operations....... (1,035) 2,759 124
Net income (loss) from discontinued operations,
net of taxes and noncontrolling interest......... 114 85 66
-------- --------- ---------
Net income (loss).................................. (921) 2,844 190
Less: net (income) loss attributable to the
noncontrolling interest......................... 3 (1) --
-------- --------- ---------
Net income (loss) attributable to AXA Equitable.... $ (918) $ 2,843 $ 190
======== ========= =========
|
See Notes to the Consolidated Financial Statements.
F-4
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- -------- ------
(IN MILLIONS)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)................................. $ (921) $ 2,844 $ 190
--------- -------- ------
Other Comprehensive income (loss) net of income
taxes:
Change in unrealized gains (losses), net of
reclassification adjustment.................... (1,230) 625 (233)
Changes in defined benefit plan related items
not yet recognized in periodic benefit cost,
net of reclassification adjustment............. (4) (5) (3)
Other comprehensive income (loss) from
discontinued operations........................ -- (18) 17
--------- -------- ------
Total other comprehensive income (loss), net of
income taxes.................................... (1,234) 602 (219)
--------- -------- ------
Comprehensive income (loss) attributable to
AXA Equitable................................... $ (2,155) $ 3,446 $ (29)
========= ======== ======
|
See Notes to the Consolidated Financial Statements.
F-5
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF EQUITY
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
EQUITY ATTRIBUTABLE TO AXA EQUITABLE:
COMMON STOCK, AT PAR VALUE, BEGINNING AND END
OF YEAR........................................ $ 2 $ 2 $ 2
--------- --------- ---------
Capital in excess of par value, beginning
of year........................................ $ 6,859 $ 5,339 $ 5,321
Capital contribution from parent company........ -- 1,500 --
Transfer of deferred tax asset in GMxB Unwind... 1,209 -- --
Settlement of intercompany payables in
GMxB Unwind.................................... (297) -- --
Other........................................... 36 20 18
--------- --------- ---------
CAPITAL IN EXCESS OF PAR VALUE, END OF YEAR..... $ 7,807 $ 6,859 $ 5,339
--------- --------- ---------
Retained earnings, beginning of year............ $ 8,938 $ 6,095 $ 6,955
Cumulative effect of adoption of revenue
recognition standard ASC 606................... 8 -- --
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS
ATTRIBUTE TO DISPOSED SUBSIDIARY............... (83) -- --
Net income (loss) attributable to AXA Equitable. (918) 2,843 190
Dividend to parent company...................... (1,672) -- (1,050)
Distribution of disposed subsidiary............. (1,175) -- --
--------- --------- ---------
RETAINED EARNINGS, END OF YEAR.................. $ 5,098 $ 8,938 $ 6,095
--------- --------- ---------
Accumulated other comprehensive income (loss),
beginning of year.............................. $ 598 $ (4) $ 215
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS........ 83 -- --
Other comprehensive income (loss)............... (1,234) 602 (219)
Transfer of accumulated other comprehensive
income to discontinued operations.............. 62 -- --
--------- --------- ---------
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
END OF YEAR.................................... (491) 598 (4)
--------- --------- ---------
TOTAL AXA EQUITABLE'S EQUITY, END OF YEAR...... $ 12,416 $ 16,397 $ 11,432
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
Noncontrolling interest, continuing operations,
beginning of year.............................. $ 19 $ -- $ --
Net earnings (loss) attributable to
noncontrolling interest........................ 1 -- --
Net earnings (loss) attributable to redeemable
noncontrolling interests....................... 2 (1) --
Consolidation of real estate joint ventures..... -- 19 --
Deconsolidation of real estate joint ventures... (8) -- --
Reclassification of net earnings (loss)
attributable to redeemable
noncontrolling interests....................... (2) 1 --
--------- --------- ---------
NONCONTROLLING INTEREST, CONTINUING OPERATIONS,
END OF YEAR.................................... $ 12 $ 19 $ --
--------- --------- ---------
Noncontrolling interest, discontinued
operations, beginning of year.................. $ 3,076 $ 3,096 $ 3,059
Repurchase of AB Holding Units.................. -- (158) (168)
Net earnings (loss) attributable to
noncontrolling interest........................ -- 485 491
Dividends paid to noncontrolling interest....... -- (457) (384)
Transfer of AB Holding Units.................... (3,076) -- --
Other changes in noncontrolling interest........ -- 110 98
--------- --------- ---------
NONCONTROLLING INTEREST, DISCONTINUED
OPERATIONS, END OF YEAR........................ $ -- $ 3,076 $ 3,096
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST $ 12 $ 3,095 $ 3,096
--------- --------- ---------
TOTAL EQUITY, END OF YEAR......................... $ 12,428 $ 19,492 $ 14,528
========= ========= =========
|
See Notes to the Consolidated Financial Statements.
F-6
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
---------- ---------- ---------
(IN MILLIONS)
NET INCOME (LOSS)/(1)/............................. $ (358) $ 3,377 $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders'
account balances................................ 1,002 921 905
Policy charges and fee income.................... (3,523) (3,294) (3,311)
Net derivative (gains) losses.................... 1,010 (870) 1,337
Investment (gains) losses, net................... (3) 125 (16)
Realized and unrealized (gains) losses on
trading securities.............................. 221 (166) 41
Non-cash long-term incentive compensation
expense/(2)/.................................... 218 185 152
Amortization of deferred cost of
reinsurance asset............................... 1,882 (84) 159
Amortization and depreciation/(2)/............... 340 825 614
Cash received on the recapture of
captive reinsurance............................. 1,273 -- --
Equity (income) loss from limited partnerships... (120) (157) (91)
Changes in:
Net broker-dealer and customer related
receivables/payables.......................... 838 (278) 608
Reinsurance recoverable/(2)/.................... (390) (1,018) (304)
Segregated cash and securities, net............. (345) 130 (381)
Capitalization of deferred policy acquisition
costs/(2)/.................................... (597) (578) (594)
Future policy benefits.......................... (284) 1,189 431
Current and deferred income taxes............... (556) (1,174) (753)
Other, net/(2)/................................. 810 486 56
---------- ---------- ---------
Net cash provided by (used in)
operating activities............................. $ 1,418 $ (381) $ (461)
---------- ---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale............ $ 8,935 $ 9,738 $ 7,154
Mortgage loans on real estate................... 768 934 676
Trading account securities...................... 9,298 9,125 6,271
Real estate joint ventures...................... 139 -- --
Short-term investments/(2)/..................... 2,315 2,204 2,984
Other........................................... 190 228 32
Payment for the purchase/origination of:
Fixed maturities, available-for-sale............ (11,110) (12,465) (7,873)
Mortgage loans on real estate................... (1,642) (2,108) (3,261)
Trading account securities...................... (11,404) (12,667) (8,691)
Short-term investments/(2)/..................... (1,852) (2,456) (3,187)
Other........................................... (170) (280) (250)
Cash settlements related to
derivative instruments.......................... 805 (1,259) 102
Repayments of loans to affiliates................ 900 -- 384
Investment in capitalized software, leasehold
improvements and EDP equipment.................. (115) (100) (85)
Purchase of business, net of cash acquired....... -- (130) (21)
Issuance of loans to affiliates.................. (1,100) -- --
Cash disposed due to distribution of
disposed subsidiary............................. (672) -- --
Other, net/(2)/.................................. (91) 322 407
---------- ---------- ---------
Net cash provided by (used in)
investing activities............................. $ (4,806) $ (8,914) $ (5,358)
---------- ---------- ---------
|
See Notes to the Consolidated Financial Statements.
F-7
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits........................................ $ 9,365 $ 9,334 $ 9,746
Withdrawals..................................... (4,496) (3,926) (2,874)
Transfer (to) from Separate Accounts............ 1,809 1,566 1,202
Change in short-term financings.................. (26) 53 (69)
Change in collateralized pledged assets.......... 1 710 (677)
Change in collateralized pledged liabilities..... (291) 1,108 125
(Decrease) increase in overdrafts payable........ 3 63 (85)
Additional loans from affiliates................. 572 -- --
Shareholder dividends paid....................... (1,672) -- (1,050)
Repurchase of AB Holding Units................... (267) (220) (236)
Purchases (redemptions) of noncontrolling
interests of consolidated company-sponsored
investment funds................................ (472) 120 (137)
Distribution to noncontrolling interest of
consolidated subsidiaries....................... (610) (457) (385)
Increase (decrease) in securities sold under
agreement to repurchase......................... (1,314) (109) 104
(Increase) decrease in securities purchased
under agreement to resell....................... -- -- 79
Capital contribution from parent company......... -- 1,500 --
Other, net....................................... 11 (10) 8
-------- -------- --------
Net cash provided by (used in)
financing activities............................. $ 2,613 $ 9,732 $ 5,751
-------- -------- --------
Effect of exchange rate changes on cash and
cash equivalents................................. (12) 22 (10)
-------- -------- --------
Change in cash and cash equivalents................ (787) 459 (78)
Cash and cash equivalents, beginning of year....... 3,409 2,950 3,028
-------- -------- --------
Cash and cash equivalents, end of year............. $ 2,622 $ 3,409 $ 2,950
======== ======== ========
Cash and cash equivalents of disposed subsidiary:
Beginning of year................................ $ 1,009 $ 1,006 $ 561
======== ======== ========
End of year...................................... $ -- $ 1,009 $ 1,006
======== ======== ========
Cash and cash equivalents of continuing operations
Beginning of year................................ $ 2,400 $ 1,944 $ 2,467
======== ======== ========
End of year...................................... $ 2,622 $ 2,400 $ 1,944
======== ======== ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid.................................... $ -- $ (8) $ (11)
======== ======== ========
Income taxes (refunded) paid..................... $ (8) $ (33) $ 613
======== ======== ========
|
See Notes to the Consolidated Financial Statements.
F-8
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- ----- ------
(IN MILLIONS)
CASH FLOWS OF DISPOSED SUBSIDIARY:
Net cash provided by (used in)
operating activities........................... $ 1,137 $ 715 $1,041
Net cash provided by (used in)
investing activities........................... (102) (297) 323
Net cash provided by (used in)
financing activities........................... (1,360) (437) (909)
Effect of exchange rate changes on cash and
cash equivalents............................... (12) 22 (10)
NON-CASH TRANSACTIONS:
Continuing operations
(Settlement) issuance of long-term debt......... $ (202) $ 202 $ --
======== ===== ======
Transfer of assets to reinsurer................. $ (604) $ -- $ --
======== ===== ======
Repayments of loans from affiliates............. $ 300 $ -- $ --
======== ===== ======
Discontinued operations
Fair value of assets acquired................... $ -- $ -- $ 34
======== ===== ======
Fair value of liabilities assumed............... $ -- $ -- $ 1
======== ===== ======
Payables recorded under contingent
payment arrangements........................... $ -- $ -- $ 12
======== ===== ======
Disposal of subsidiary
Assets disposed................................. $ 9,156 $ -- $ --
Liabilities disposed............................ 4,914 -- --
-------- ----- ------
Net assets disposed............................. 4,242 -- --
Cash disposed................................... 672 -- --
-------- ----- ------
Net non-cash disposed........................... $ 3,570 $ -- $ --
======== ===== ======
|
/(1)/Net income (loss) includes $564 million, $533 million and $496 million in
2018, 2017 and 2016, respectively, of the discontinued operations that are
not included in net income (loss) in the Consolidated Statements of Income
(Loss).
/(2)/Prior period amounts have been reclassified to conform to current period
presentation. See Note 20 for further information.
See Notes to the Consolidated Financial Statements.
F-9
AXA EQUITABLE LIFE INSURANCE COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
Consolidation
AXA Equitable Life Insurance Company's ("AXA Equitable" and, collectively
with its consolidated subsidiaries, the "Company") primary business is
providing life insurance and employee benefit products to both individuals
and businesses. The Company is an indirect, wholly-owned subsidiary of AXA
Equitable Holdings, Inc. ("Holdings"). Prior to the closing of the initial
public offering of shares of Holdings' common stock on May 14, 2018 (the
"IPO"), Holdings was a wholly-owned subsidiary of AXA S.A. ("AXA"), a French
holding company for the AXA Group, a worldwide leader in life, property and
casualty, and health insurance and asset management. As of December 31,
2018, AXA owns approximately 59% of the outstanding common stock of Holdings.
In March 2018, AXA contributed its 0.5% minority interest in AXA Financial,
Inc. ("AXA Financial") to Holdings, increasing Holdings' ownership of AXA
Financial to 100%. On October 1, 2018, AXA Financial merged with and into
its direct parent, Holdings, with Holdings continuing as the surviving
entity (the "AXA Financial Merger"). As a result of the AXA Financial
Merger, Holdings assumed all of AXA Financial's liabilities, including two
assumption agreements under which it legally assumed primary liability for
certain employee benefit plans of AXA Equitable Life and various guarantees
for its subsidiaries.
The accompanying consolidated financial statements represent the
consolidated results and financial position of AXA Equitable and not the
consolidated results and financial position of Holdings.
Discontinued Operations
In the fourth quarter of 2018, the Company transferred its economic interest
in the business of AllianceBernstein Holding L.P. ("AB Holding"),
AllianceBernstein L.P. ("ABLP") and their subsidiaries (collectively, "AB")
to a newly created wholly-owned subsidiary of Holdings (the "AB Business
Transfer"). The results of AB are reflected in the Company's consolidated
financial statements as a discontinued operation and, therefore, are
presented as Assets of disposed subsidiary, Liabilities of disposed
subsidiary on the consolidated balance sheets and Net income (loss) from
discontinued operations, net of taxes, on the consolidated statements of
income (loss). Intercompany transactions between the Company and AB prior to
the AB Business Transfer have been eliminated. Ongoing service transactions
will be reported as related party transactions going forward. See Note 19
for information on discontinued operations and transactions with AB.
As a result of the AB Business Transfer, we have reassessed the Company's
segment structure and concluded that the Company operates as a single
reportable segment as information on a more segmented basis is not evaluated
by the Chief Operating Decision Maker and as such there is only a single
reporting segment.
2) SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The preparation of the accompanying consolidated financial statements in
conformity with accounting principles generally accepted in the United
States of America ("U.S. GAAP") requires management to make estimates and
assumptions (including normal, recurring accruals) that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from these estimates.
The accompanying consolidated financial statements present the consolidated
results of operations, financial condition and cash flows of the Company and
its subsidiaries and those investment companies, partnerships and joint
ventures in which the Company has control and a majority economic interest
as well as those variable interest entities ("VIEs") that meet the
requirements for consolidation.
Financial results in the historical consolidated financial statements may
not be indicative of the results of operations, comprehensive income (loss),
financial position, equity or cash flows that would have been achieved had
we operated as a separate, standalone entity during the reporting periods
presented. We believe that the consolidated financial statements include all
adjustments necessary for a fair presentation of the results of operations
of the Company.
F-10
All significant intercompany transactions and balances have been eliminated
in consolidation. The years "2018", "2017" and "2016" refer to the years
ended December 31, 2018, 2017 and 2016, respectively.
Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
-------------------------------------------------------------------------------------------------------------------
ASU 2014-09: REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606)
-------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that On January 1, 2018, the Company adopted the new revenue
clarifies the principles for recognizing recognition guidance on a modified retrospective basis. The impact
revenue arising from contracts with of the adoption of the new revenue recognition guidance related
customers and develops a common revenue to the disposed subsidiary resulted in an opening retained earnings
standard for U.S. GAAP. adjustment to the Company of $8 million. Adoption did not
change the amounts or timing of the Company's revenue
recognition for investment management and advisory fees related
to continuing operations.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-01: FINANCIAL INSTRUMENTS -- OVERALL (SUBTOPIC 825-10)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance related to On January 1, 2018, the Company adopted the new recognition
the recognition and measurement of financial requirements on a modified retrospective basis for changes in the
assets and financial liabilities. The new fair value of AFS equity securities, resulting in no material
guidance primarily affects the accounting reclassification adjustment from AOCI to opening retained
for equity investments, financial earnings for the net unrealized gains, net of tax, related to
liabilities under the fair value option, and approximately $13 million of common stock securities and
presentation and disclosure requirements for eliminated their designation as AFS equity securities. The Company
financial instruments. The FASB also does not currently report any of its financial liabilities under the
clarified guidance related to the valuation fair value option.
allowance assessment when recognizing
deferred tax assets resulting from
unrealized losses on AFS debt securities.
The new guidance requires equity investments
in unconsolidated entities, except those
accounted for under the equity method, to be
measured at fair value through earnings,
thereby eliminating the AFS classification
for equity securities with readily
determinable fair values for which changes
in fair value currently were reported
in AOCI.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-15: STATEMENT OF CASH FLOWS (TOPIC 230)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance to simplify Adoption of this guidance on January 1, 2018, did not have a
elements of cash flow classification. The material impact on the Company's consolidated financial statements.
new guidance is intended to reduce diversity
in practice in how certain transactions are
classified in the statement of cash flows.
The new guidance requires application of a
retrospective transition method.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-07: COMPENSATION -- RETIREMENT BENEFITS (TOPIC 715)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance on the On January 1, 2018, the Company adopted the change in the
presentation of net periodic pension and income statement presentation utilizing the practical expedient for
post-retirement benefit costs that requires determining the historical components of net benefit costs,
retrospective disaggregation of the service resulting in no material impact to the consolidated financial
cost component from the other components of statements. In addition, no changes to the Company's
net benefit costs on the income statement. capitalization policies with respect to benefit costs resulted from
the adoption of the new guidance.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-09: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
-------------------------------------------------------------------------------------------------------------------
This ASU provides clarity and reduces both Adoption of this amendment on January 1, 2018 did not have a
1) diversity in practice and 2) cost and material impact on the Company's consolidated financial statements.
complexity when applying guidance in Topic
718, Compensation -- Stock Compensation, to
a change to the terms or conditions of a
share-based payment award.
-------------------------------------------------------------------------------------------------------------------
|
F-11
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
------------------------------------------------------------------------------------------------------------------
ASU 2018-02: INCOME STATEMENT -- REPORTING COMPREHENSIVE INCOME
------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that permits The company early adopted the ASU effective October 1, 2018 and
entities to reclassify to retained earnings recognized the impact in the period of adoption. As a result, the
tax effects "stranded" in AOCI resulting company reclassified stranded effects resulting from the Tax Act of
from the change in federal tax rate enacted 2017 by decreasing AOCI and increasing retained earnings by
by the Tax Cuts and Jobs Act (the "Tax $83 million.
Reform Act") on December 22, 2017. If
elected, the stranded tax effects for all
items must be reclassified in AOCI,
including, but not limited to, AFS
securities and employee benefits.
------------------------------------------------------------------------------------------------------------------
ASU 2018-14: COMPENSATION -- RETIREMENT BENEFITS -- DEFINED BENEFIT PLANS -- GENERAL (SUBTOPIC 715-20)
------------------------------------------------------------------------------------------------------------------
This ASU improves the effectiveness of Effective for the year ended December 31, 2018 the Company
disclosures related to defined benefit plans early adopted new guidance that amends the disclosure guidance
in the notes to the financial statements. for employee benefit plans, applied on a retrospective basis to all
The amendments in this ASU remove periods presented. See Note 13 for additional information
disclosures that are no longer considered regarding the Company's employee benefit plans.
cost beneficial, clarify the specific
requirements of disclosures, and add new,
relevant disclosure requirements.
|
Future Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-17: CONSOLIDATION (TOPIC 810): TARGETED IMPROVEMENTS TO RELATED PARTY GUIDANCE FOR
VARIABLE INTEREST ENTITIES
---------------------------------------------------------------------------------------------------
This ASU provides guidance Effective for fiscal years Management currently is
requiring that indirect beginning after December 15, evaluating the impact that
interests held through 2019, and interim periods adoption of this guidance
related parties in common within those fiscal years. will have on the Company's
control arrangements be Early adoption is permitted. consolidated financial
considered on a proportional All entities are required to statements and
basis for determining whether apply the amendments in this related disclosures.
fees paid to decision makers update retrospectively with a
and service providers are cumulative-effect adjustment
variable interests. to retained earnings at the
beginning of the earliest
period presented.
---------------------------------------------------------------------------------------------------
ASU 2018-13: FAIR VALUE MEASUREMENT (TOPIC 820)
---------------------------------------------------------------------------------------------------
This ASU improves the Effective for fiscal years Management currently is
effectiveness of fair value beginning after December 15, evaluating the impact of the
disclosures in the notes to 2019. Early adoption is guidance on the Company's
financial statements. permitted, with the option to financial statement
Amendments in this ASU impact early adopt amendments to disclosures but has concluded
the disclosure requirements remove or modify disclosures, that this guidance will not
in Topic 820, including the with full adoption of impact the Company's
removal, modification and additional disclosure consolidated financial
addition to existing requirements delayed until position or results
disclosure requirements. the stated effective date. of operations.
Amendments on changes in
unrealized gains and losses,
the range and weighted
average of significant
unobservable inputs used to
develop Level 3 fair value
measurements, and the
narrative description of
measurement uncertainty
should be applied
prospectively. All other
amendments should be
applied retrospectively.
---------------------------------------------------------------------------------------------------
|
F-12
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-12: FINANCIAL SERVICES -- INSURANCE (TOPIC 944)
---------------------------------------------------------------------------------------------------
This ASU provides targeted Effective date for public Management currently is
improvements to existing business entities for fiscal evaluating the impact that
recognition, measurement, years and interim periods adoption of this guidance
presentation, and disclosure with those fiscal years, will have on the Company's
requirements for beginning after December 31, consolidated financial
long-duration contracts 2020. Early adoption statements and related
issued by an insurance is permitted. disclosures. The Company has
entity. The ASU primarily formed a project
impacts four key For the liability for future implementation team to work
areas, including: policyholder benefits for on compiling all significant
traditional and limited information needed to assess
Measurement of the liability payment contracts, companies the impact of the new
for future policy benefits can elect one of two adoption guidance, including changes
for traditional and limited methods. Companies can either to system requirements and
payment contracts. The ASU elect a modified internal controls. The
requires companies to review, retrospective transition Company expects adoption of
and if necessary update, cash method applied to contracts the ASU will have a
flow assumptions at least in force as of the beginning significant impact on its
annually for of the earliest period consolidated financial
non-participating traditional presented on the basis of condition, results of
and limited-payment insurance their existing carrying operations, cash flows and
contracts. Interest rates amounts, adjusted for the required disclosures, as well
used to discount the removal of any related as processes and controls.
liability will need to be amounts in AOCI or a full
updated quarterly using an retrospective transition
upper medium grade (low method using actual
credit risk) fixed-income historical experience
instrument yield. information as of contract
inception. The same adoption
Measurement of market risk method must be used for
benefits ("MRBs"). MRBs, as deferred acquisition costs.
defined under the ASU, will
encompass certain GMxB For MRBs, the ASU should be
features associated with applied retrospectively as of
variable annuity products and the earliest period presented
other general account by a retrospective
annuities with other than application to all prior
nominal market risk. The ASU periods.
requires MRBs to be measured
at fair value with changes in For deferred acquisition
value attributable to changes costs, companies can elect
in instrument-specific credit one of two adoption
risk recognized in OCI. methods. Companies can either
elect a modified
Amortization of deferred retrospective transition
acquisition costs. The ASU method applied to contracts
simplifies the amortization in force as of the beginning
of deferred acquisition costs of the earliest period
and other balances amortized presented on the basis of
in proportion to premiums, their existing carrying
gross profits, or gross amounts, adjusted for the
margins, requiring such removal of any related
balances to be amortized on a amounts in AOCI or a full
constant level basis over the retrospective transition
expected term of the method using actual
contracts. Deferred costs historical experience
will be required to be information as of contract
written off for unexpected inception. The same adoption
contract terminations but method must be used for the
will not be subject to liability for future
impairment testing. policyholder benefits for
traditional and limited
Expanded footnote payment contracts.
disclosures. The ASU requires
additional disclosures
including disaggregated
rollforwards of beginning to
ending balances of the
liability for future policy
benefits, policyholder
account balances, MRBs,
separate account liabilities
and deferred acquisition
costs. Companies will also be
required to disclose
information about significant
inputs, judgements,
assumptions and methods used
in measurement.
---------------------------------------------------------------------------------------------------
|
F-13
EFFECT ON THE FINANCIAL STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------------------
ASU 2018-07: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
---------------------------------------------------------------------------------------------------------------
This ASU contains new Effective for public business The Company has granted
guidance that largely aligns entities for fiscal years share-based payment awards
the accounting for beginning after December 15, only to employees as defined
share-based payment awards 2018, including interim by accounting guidance and
issued to employees and periods, with early does not expect this guidance
non-employees. adoption permitted. will have a material impact
on its consolidated
financial statements.
---------------------------------------------------------------------------------------------------------------
ASU 2017-12: DERIVATIVES AND HEDGING (TOPIC 815)
---------------------------------------------------------------------------------------------------------------
The amendments in this ASU Effective for fiscal years Management does not expect
better align an entity's risk beginning after December 15, this guidance will have a
management activities and 2018 and interim periods material impact on the
financial reporting for within those fiscal years, Company's consolidated
hedging relationships through with early adoption financial statements.
changes to both the permitted. The effect of
designation and measurement adoption should be reflected
guidance for qualifying as of the beginning of the
hedging relationships and the fiscal year of adoption.
presentation of hedge results.
---------------------------------------------------------------------------------------------------------------
ASU 2017-08: RECEIVABLES -- NONREFUNDABLE FEES AND OTHER COSTS (SUBTOPIC 310-20)
---------------------------------------------------------------------------------------------------------------
This ASU requires certain Effective for interim and Management does not expect
premiums on callable debt annual periods beginning this guidance will have a
securities to be amortized to after December 15, 2018, with material impact on the
the earliest call date and is early adoption permitted and Company's consolidated
intended to better align is to be applied on a financial statements.
interest income recognition modified retrospective basis.
with the manner in which
market participants price
these instruments.
---------------------------------------------------------------------------------------------------------------
ASU 2016-13: FINANCIAL INSTRUMENTS -- CREDIT LOSSES (TOPIC 326)
---------------------------------------------------------------------------------------------------------------
This ASU contains new Effective for fiscal years Management currently is
guidance which introduces an beginning after December 15, evaluating the impact that
approach based on expected 2019, including interim adoption of this guidance
losses to estimate credit periods within those fiscal will have on the Company's
losses on certain types of years. Early adoption is consolidated financial
financial instruments. It permitted for fiscal years statements. Although early
also modifies the impairment beginning after December 15, adoption is permitted, the
model for available-for-sale 2018, including interim Company expects to adopt ASU
debt securities and provides periods within those fiscal 2016-13 when it becomes
for a simplified accounting years. These amendments effective for the Company on
model for purchased financial should be applied through a January 1, 2020.
assets with credit cumulative-effect adjustment
deterioration since to retained earnings as of
their origination. the beginning of the first
reporting period in which the
guidance is effective.
---------------------------------------------------------------------------------------------------------------
ASU 2016-02: LEASES (TOPIC 842)
---------------------------------------------------------------------------------------------------------------
This ASU contains revised Effective for fiscal years The Company adopted ASU
guidance to lease accounting beginning after December 15, 2016-02, as well as other
that will require lessees to 2018, including interim related clarifications and
recognize on the balance periods within those fiscal interpretive guidance issued
sheet a "right-of-use" asset years, for public business by the FASB effective
and a lease liability for entities. Early application January 1, 2019. The Company
virtually all lease is permitted. Lessees and has identified its
arrangements, including those lessors are required to apply significant existing leases,
embedded in other contracts. a modified retrospective which primarily include real
Lessor accounting will remain transition approach, which estate leases for office
substantially unchanged from includes optional practical space, that will be impacted
the current model but has expedients that entities may by the new guidance. The
been updated to align with elect to apply. In July 2018, Company's adoption of this
certain changes made to the the FASB issued ASU 2018-11 guidance is expected to
lessee model. which allows for an result in a material impact
additional transition method. on the consolidated balance
The Company will adopt the sheets, however it will not
standard utilizing the have a material impact on the
additional transition method, Consolidated Statement of
which allows entities to Income (Loss). The Company's
initially apply the new adoption of this guidance
leases standard at the will result in the
adoption date. recognition, as of January 1,
2019, of additional right of
use (RoU) operating lease
assets ranging from
$300 million to $400 million
and operating lease
liabilities ranging from
$400 million to $500 million,
respectively.
The adoption of this standard
will not have a significant
impact on opening
retained earnings.
|
F-14
Investments
The carrying values of fixed maturities classified as available-for-sale
("AFS") are reported at fair value. Changes in fair value are reported in
other comprehensive income ("OCI"), net of policy related amounts and
deferred income taxes. The amortized cost of fixed maturities is adjusted
for impairments in value deemed to be other than temporary which are
recognized in Investment gains (losses), net. The redeemable preferred stock
investments that are reported in fixed maturities include real estate
investment trusts ("REIT"), perpetual preferred stock and redeemable
preferred stock. These securities may not have a stated maturity, may not be
cumulative and do not provide for mandatory redemption by the issuer.
The Company determines the fair values of fixed maturities and equity
securities based upon quoted prices in active markets, when available, or
through the use of alternative approaches when market quotes are not readily
accessible or available. These alternative approaches include matrix or
model pricing and use of independent pricing services, each supported by
reference to principal market trades or other observable market assumptions
for similar securities. More specifically, the matrix pricing approach to
fair value is a discounted cash flow methodology that incorporates market
interest rates commensurate with the credit quality and duration of the
investment.
The Company's management, with the assistance of its investment advisors,
monitors the investment performance of its portfolio and reviews AFS
securities with unrealized losses for other-than-temporary impairments
("OTTI"). Integral to this review is an assessment made each quarter, on a
security-by-security basis, by the Company's Investments Under Surveillance
("IUS") Committee, of various indicators of credit deterioration to
determine whether the investment security is expected to recover. This
assessment includes, but is not limited to, consideration of the duration
and severity of the unrealized loss, failure, if any, of the issuer of the
security to make scheduled payments, actions taken by rating agencies,
adverse conditions specifically related to the security or sector, the
financial strength, liquidity and continued viability of the issuer.
If there is no intent to sell or likely requirement to dispose of the fixed
maturity security before its recovery, only the credit loss component of any
resulting OTTI is recognized in income (loss) and the remainder of the fair
value loss is recognized in OCI. The amount of credit loss is the shortfall
of the present value of the cash flows expected to be collected as compared
to the amortized cost basis of the security. The present value is calculated
by discounting management's best estimate of projected future cash flows at
the effective interest rate implicit in the debt security at the date of
acquisition. Projections of future cash flows are based on assumptions
regarding probability of default and estimates regarding the amount and
timing of recoveries. These assumptions and estimates require use of
management judgment and consider internal credit analyses as well as market
observable data relevant to the collectability of the security. For mortgage
and asset-backed securities, projected future cash flows also include
assumptions regarding prepayments and underlying collateral value.
Real estate held for the production of income is stated at depreciated cost
less valuation allowances.
Depreciation of real estate held for production of income is computed using
the straight-line method over the estimated useful lives of the properties,
which generally range from 40 to 50 years.
Policy loans represent funds loaned to policyholders up to the cash
surrender value of the associated insurance policies and are carried at the
unpaid principal balances due to the Company from the policyholders.
Interest income on policy loans is recognized in net investment income at
the contract interest rate when earned. Policy loans are fully
collateralized by the cash surrender value of the associated insurance
policies.
Partnerships, investment companies and joint venture interests that the
Company has control of and has an economic interest in or those that meet
the requirements for consolidation under accounting guidance for
consolidation of VIEs are consolidated. Those that the Company does not have
control of and does not have a majority economic interest in and those that
do not meet the VIE requirements for consolidation are reported on the
equity method of accounting and are reported in other equity investments.
The Company records its interests in certain of these partnerships on a
month or one quarter lag.
Trading securities, which include equity securities and fixed maturities,
are carried at fair value based on quoted market prices, with realized and
unrealized gains (losses) reported in net investment income (loss) in the
statements of Net income (loss).
Corporate owned life insurance ("COLI") has been purchased by the Company
and certain subsidiaries on the lives of certain key employees and the
Company and these subsidiaries are named as beneficiaries under these
policies. COLI is carried at the cash surrender value of the policies. At
December 31, 2018, 2017 and 2016 the carrying value of COLI was
$873 million, $911 million and $892 million, respectively, and is reported
in Other invested assets in the consolidated balance sheets.
Cash and cash equivalents includes cash on hand, demand deposits, money
market accounts, overnight commercial paper and highly liquid debt
instruments purchased with an original maturity of three months or less. Due
to the short-term nature of these investments, the recorded value is deemed
to approximate fair value.
F-15
All securities owned, including U.S. government and agency securities,
mortgage-backed securities, futures and forwards transactions, are reported
in the consolidated financial statements on a trade date basis.
Derivatives
Derivatives are financial instruments whose values are derived from interest
rates, foreign exchange rates, financial indices, values of securities or
commodities, credit spreads, market volatility, expected returns and
liquidity. Values can also be affected by changes in estimates and
assumptions, including those related to counterparty behavior and
non-performance risk used in valuation models. Derivative financial
instruments generally used by the Company include equity, currency, and
interest rate futures, total return and/or other equity swaps, interest rate
swaps and floors, swaptions, variance swaps and equity options, all of which
may be exchange-traded or contracted in the over-the-counter market. All
derivative positions are carried in the consolidated balance sheets at fair
value, generally by obtaining quoted market prices or through the use of
valuation models.
Freestanding derivative contracts are reported in the consolidated balance
sheets either as assets within "Other invested assets" or as liabilities
within "Other liabilities". The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related Credit Support Annex ("CSA") have been
executed. The Company uses derivatives to manage asset/liability risk and
has designated some of those economic relationships under the criteria to
qualify for hedge accounting treatment. All changes in the fair value of the
Company's freestanding derivative positions not designated to hedge
accounting relationships, including net receipts and payments, are included
in "Net derivative gains (losses)" without considering changes in the fair
value of the economically associated assets or liabilities.
The Company is a party to financial instruments and other contracts that
contain "embedded" derivative instruments. At inception, the Company
assesses whether the economic characteristics of the embedded instrument are
"clearly and closely related" to the economic characteristics of the
remaining component of the "host contract" and whether a separate instrument
with the same terms as the embedded instrument would meet the definition of
a derivative instrument. When those criteria are satisfied, the resulting
embedded derivative is bifurcated from the host contract, carried in the
consolidated balance sheets at fair value, and changes in its fair value are
recognized immediately and captioned in the consolidated statements of
income (loss) according to the nature of the related host contract. For
certain financial instruments that contain an embedded derivative that
otherwise would need to be bifurcated and reported at fair value, the
Company instead may elect to carry the entire instrument at fair value.
Securities Repurchase and Reverse Repurchase Agreements
Securities repurchase and reverse repurchase transactions involve the
temporary exchange of securities for cash or other collateral of equivalent
value, with agreement to redeliver a like quantity of the same or similar
securities at a future date prior to maturity at a fixed and determinable
price. Transfers of securities under these agreements to repurchase or
resell are evaluated by the Company to determine whether they satisfy the
criteria for accounting treatment as secured borrowing or lending
arrangements. Agreements not meeting the criteria would require recognition
of the transferred securities as sales or purchases with related forward
repurchase or resale commitments. All of the Company's securities repurchase
transactions are accounted for as collateralized borrowings with the related
obligations distinctly captioned in the consolidated balance sheets.
Earnings from investing activities related to the cash received under the
Company's securities repurchase arrangements are reported in the
consolidated statements of income (loss) as "Net investment income" and the
associated borrowing cost is reported as "Interest expense." The Company has
not actively engaged in securities reverse repurchase transactions.
Commercial and Agricultural Mortgage Loans on Real Estate
Mortgage loans are stated at unpaid principal balances, net of unamortized
discounts and valuation allowances. Valuation allowances are based on the
present value of expected future cash flows discounted at the loan's
original effective interest rate or on its collateral value if the loan is
collateral dependent. However, if foreclosure is or becomes probable, the
collateral value measurement method is used.
For commercial and agricultural mortgage loans, an allowance for credit loss
is typically recommended when management believes it is probable that
principal and interest will not be collected according to the contractual
terms. Factors that influence management's judgment in determining allowance
for credit losses include the following:
. Loan-to-value ratio -- Derived from current loan balance divided by
the fair market value of the property. An allowance for credit loss
is typically recommended when the loan-to-value ratio is in excess of
100%. In the case where the loan-to-value is in excess of 100%, the
allowance for credit loss is derived by taking the difference between
the fair market value (less cost of sale) and the current loan
balance.
. Debt service coverage ratio -- Derived from actual operating earnings
divided by annual debt service. If the ratio is below 1.0x, then the
income from the property does not support the debt.
F-16
. Occupancy -- Criteria varies by property type but low or below market
occupancy is an indicator of sub-par property performance.
. Lease expirations -- The percentage of leases expiring in the
upcoming 12 to 36 months are monitored as a decline in rent and/or
occupancy may negatively impact the debt service coverage ratio. In
the case of single-tenant properties or properties with large tenant
exposure, the lease expiration is a material risk factor.
. Maturity -- Mortgage loans that are not fully amortizing and have
upcoming maturities within the next 12 to 24 months are monitored in
conjunction with the capital markets to determine the borrower's
ability to refinance the debt and/or pay off the balloon balance.
. Borrower/tenant related issues -- Financial concerns, potential
bankruptcy or words or actions that indicate imminent default or
abandonment of property.
. Payment status (current vs. delinquent) -- A history of delinquent
payments may be a cause for concern.
. Property condition -- Significant deferred maintenance observed
during the lenders annual site inspections.
. Other -- Any other factors such as current economic conditions may
call into question the performance of the loan.
Mortgage loans also are individually evaluated quarterly by the Company's
IUS Committee for impairment, including an assessment of related collateral
value. Commercial mortgages 60 days or more past due and agricultural
mortgages 90 days or more past due, as well as all mortgages in the process
of foreclosure, are identified as problem mortgages. Based on its monthly
monitoring of mortgages, a class of potential problem mortgages are also
identified, consisting of mortgage loans not currently classified as problem
mortgages but for which management has doubts as to the ability of the
borrower to comply with the present loan payment terms and which may result
in the loan becoming a problem or being restructured. The decision whether
to classify a performing mortgage loan as a potential problem involves
significant subjective judgments by management as to likely future industry
conditions and developments with respect to the borrower or the individual
mortgaged property.
For problem mortgage loans, a valuation allowance is established to provide
for the risk of credit losses inherent in the lending process. The allowance
includes loan specific reserves for mortgage loans determined to be
non-performing as a result of the loan review process. A non-performing loan
is defined as a loan for which it is probable that amounts due according to
the contractual terms of the loan agreement will not be collected. The
loan-specific portion of the loss allowance is based on the Company's
assessment as to ultimate collectability of loan principal and interest.
Valuation allowances for a non-performing loan are recorded based on the
present value of expected future cash flows discounted at the loan's
effective interest rate or based on the fair value of the collateral if the
loan is collateral dependent. The valuation allowance for mortgage loans can
increase or decrease from period to period based on such factors.
Impaired mortgage loans without provision for losses are mortgage loans
where the fair value of the collateral or the net present value of the
expected future cash flows related to the loan equals or exceeds the
recorded investment. Interest income earned on mortgage loans where the
collateral value is used to measure impairment is recorded on a cash basis.
Interest income on mortgage loans where the present value method is used to
measure impairment is accrued on the net carrying value amount of the loan
at the interest rate used to discount the cash flows. Changes in the present
value attributable to changes in the amount or timing of expected cash flows
are reported as investment gains or losses.
Mortgage loans are placed on nonaccrual status once management believes the
collection of accrued interest is doubtful. Once mortgage loans are
classified as nonaccrual mortgage loans, interest income is recognized under
the cash basis of accounting and the resumption of the interest accrual
would commence only after all past due interest has been collected or the
mortgage loan has been restructured to where the collection of interest is
considered likely.
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized
Investment Gains (Losses)
Realized investment gains (losses) are determined by identification with the
specific asset and are presented as a component of revenue. Changes in the
valuation allowances are included in Investment gains (losses), net.
Realized and unrealized holding gains (losses) on trading and equity
securities are reflected in Net investment income (loss).
Unrealized investment gains (losses) on fixed maturities designated as AFS
held by the Company are accounted for as a separate component of AOCI, net
of related deferred income taxes, as are amounts attributable to certain
pension operations, Closed Block's policyholders' dividend obligation,
insurance liability loss recognition, DAC related to UL policies,
investment-type products and participating traditional life policies.
Changes in unrealized gains (losses) reflect changes in fair value of only
those fixed maturities classified as AFS and do not reflect any change in
fair value of policyholders' account balances and future policy benefits.
F-17
Fair Value of Financial Instruments
Fair value is defined as the exchange price that would be received for an
asset or paid to transfer a liability (an exit price) in the principal or
most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. See Note 7
for additional information regarding determining the fair value of financial
instruments.
Recognition of Insurance Income and Related Expenses
Deposits related to universal life ("UL") and investment-type contracts are
reported as deposits to policyholders' account balances. Revenues from these
contracts consist of fees assessed during the period against policyholders'
account balances for mortality charges, policy administration charges and
surrender charges. Policy benefits and claims that are charged to expense
include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized in income
when due. Benefits and expenses are matched with such income so as to result
in the recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future policy
benefits and the deferral and subsequent amortization of DAC.
For contracts with a single premium or a limited number of premium payments
due over a significantly shorter period than the total period over which
benefits are provided, premiums are recorded as revenue when due with any
excess profit deferred and recognized in income in a constant relationship
to insurance in-force or, for annuities, the amount of expected future
benefit payments.
Premiums from individual health contracts are recognized as income over the
period to which the premiums relate in proportion to the amount of insurance
protection provided.
DAC
Acquisition costs that vary with and are primarily related to the
acquisition of new and renewal insurance business, reflecting incremental
direct costs of contract acquisition with independent third parties or
employees that are essential to the contract transaction, as well as the
portion of employee compensation, including payroll fringe benefits and
other costs directly related to underwriting, policy issuance and
processing, medical inspection, and contract selling for successfully
negotiated contracts including commissions, underwriting, agency and policy
issue expenses, are deferred. In each reporting period, DAC is amortized to
Amortization of deferred policy acquisition costs of the accrual of imputed
interest on DAC balances. DAC is subject to recoverability testing at the
time of policy issue and loss recognition testing at the end of each
accounting period.
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings.
AMORTIZATION POLICY
In accordance with the guidance for the accounting and reporting by
insurance enterprises for certain long-duration contracts and participating
contracts and for realized gains and losses from the sale of investments,
current and expected future profit margins for products covered by this
guidance are examined regularly in determining the amortization of DAC.
DAC associated with certain variable annuity products is amortized based on
estimated assessments, with DAC on the remainder of variable annuities, UL
and investment-type products amortized over the expected total life of the
contract group as a constant percentage of estimated gross profits arising
principally from investment results, Separate Accounts fees, mortality and
expense margins and surrender charges based on historical and anticipated
future experience, embedded derivatives and changes in the reserve of
products that have indexed features such as SCS IUL and MSO, updated at the
end of each accounting period. When estimated gross profits are expected to
be negative for multiple years of a contract life, DAC is amortized using
the present value of estimated assessments. The effect on the amortization
of DAC of revisions to estimated gross profits or assessments is reflected
in earnings (loss) in the period such estimated gross profits or assessments
are revised. A decrease in expected gross profits or assessments would
accelerate DAC amortization. Conversely, an increase in expected gross
profits or assessments would slow DAC amortization. The effect on the DAC
assets that would result from realization of unrealized gains (losses) is
recognized with an offset to AOCI in consolidated equity as of the balance
sheet date.
F-18
A significant assumption in the amortization of DAC on variable annuities
and, to a lesser extent, on variable and interest-sensitive life insurance
relates to projected future separate account performance. Management sets
estimated future gross profit or assessment assumptions related to separate
account performance using a long-term view of expected average market
returns by applying a Reversion to the Mean ("RTM") approach, a commonly
used industry practice. This future return approach influences the
projection of fees earned, as well as other sources of estimated gross
profits. Returns that are higher than expectations for a given period
produce higher than expected account balances, increase the fees earned
resulting in higher expected future gross profits and lower DAC amortization
for the period. The opposite occurs when returns are lower than expected.
In applying this approach to develop estimates of future returns, it is
assumed that the market will return to an average gross long-term return
estimate, developed with reference to historical long-term equity market
performance. Management has set limitations as to maximum and minimum future
rate of return assumptions, as well as a limitation on the duration of use
of these maximum or minimum rates of return. At December 31, 2018, the
average gross short-term and long-term annual return estimate on variable
and interest-sensitive life insurance and variable annuities was 7.0% (4.7%
net of product weighted average Separate Accounts fees), and the gross
maximum and minimum short-term annual rate of return limitations were 15.0%
(12.7% net of product weighted average Separate Accounts fees) and 0.0%
((2.3)% net of product weighted average Separate Accounts fees),
respectively. The maximum duration over which these rate limitations may be
applied is five years. This approach will continue to be applied in future
periods. These assumptions of long-term growth are subject to assessment of
the reasonableness of resulting estimates of future return assumptions.
In addition, projections of future mortality assumptions related to variable
and interest-sensitive life products are based on a long-term average of
actual experience. This assumption is updated periodically to reflect recent
experience as it emerges. Improvement of life mortality in future periods
from that currently projected would result in future deceleration of DAC
amortization. Conversely, deterioration of life mortality in future periods
from that currently projected would result in future acceleration of DAC
amortization.
Other significant assumptions underlying gross profit estimates for UL and
investment type products relate to contract persistency and General Account
investment spread.
For participating traditional life policies (substantially all of which are
in the Closed Block), DAC is amortized over the expected total life of the
contract group as a constant percentage based on the present value of the
estimated gross margin amounts expected to be realized over the life of the
contracts using the expected investment yield. At December 31, 2018, the
average rate of assumed investment yields, excluding policy loans, for the
Company was 4.7% grading to 4.3% over six years. Estimated gross margins
include anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. The effect on the accumulated
amortization of DAC of revisions to estimated gross margins is reflected in
earnings in the period such estimated gross margins are revised. The effect
on the DAC assets that would result from realization of unrealized gains
(losses) is recognized with an offset to AOCI in consolidated equity as of
the balance sheet date. Many of the factors that affect gross margins are
included in the determination of the Company's dividends to these
policyholders. DAC adjustments related to participating traditional life
policies do not create significant volatility in results of operations as
the Closed Block recognizes a cumulative policyholder dividend obligation
expense in "Policyholders' dividends," for the excess of actual cumulative
earnings over expected cumulative earnings as determined at the time of
demutualization.
DAC associated with non-participating traditional life policies are
amortized in proportion to anticipated premiums. Assumptions as to
anticipated premiums are estimated at the date of policy issue and are
consistently applied during the life of the contracts. Deviations from
estimated experience are reflected in income (loss) in the period such
deviations occur. For these contracts, the amortization periods generally
are for the total life of the policy. DAC related to these policies are
subject to recoverability testing as part of the Company's premium
deficiency testing. If a premium deficiency exists, DAC are reduced by the
amount of the deficiency or to zero through a charge to current period
earnings (loss). If the deficiency exceeds the DAC balance, the reserve for
future policy benefits is increased by the excess, reflected in earnings
(loss) in the period such deficiency occurs.
For some products, policyholders can elect to modify product benefits,
features, rights or coverages that occur by the exchange of a contract for a
new contract, or by amendment, endorsement, or rider to a contract, or by
election or coverage within a contract. These transactions are known as
internal replacements. If such modification substantially changes the
contract, the associated DAC is written off immediately through income and
any new deferrable costs associated with the replacement contract are
deferred. If the modification does not substantially change the contract,
the DAC amortization on the original contract will continue and any
acquisition costs associated with the related modification are expensed.
Reinsurance
For each of its reinsurance agreements, the Company determines whether the
agreement provides indemnification against loss or liability relating to
insurance risk in accordance with applicable accounting standards. Cessions
under reinsurance agreements do not discharge the
F-19
Company's obligations as the primary insurer. The Company reviews all
contractual features, including those that may limit the amount of insurance
risk to which the reinsurer is subject or features that delay the timely
reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the
inception of the reinsurance agreement. The net cost of reinsurance is
recorded as an adjustment to DAC and recognized as a component of other
expenses on a basis consistent with the way the acquisition costs on the
underlying reinsured contracts would be recognized. Subsequent amounts
paid (received) on the reinsurance of in-force blocks, as well as amounts
paid (received) related to new business, are recorded as Premiums
ceded (assumed); and Amounts due from reinsurers (Amounts due to reinsurers)
are established.
Amounts currently recoverable under reinsurance agreements are included in
Amounts due from reinsurers and amounts currently payable are included in
Amounts due to reinsurers. Assets and liabilities relating to reinsurance
agreements with the same reinsurer may be recorded net on the balance sheet,
if a right of offset exists within the reinsurance agreement. In the event
that reinsurers do not meet their obligations to the Company under the terms
of the reinsurance agreements, reinsurance recoverable balances could become
uncollectible. In such instances, reinsurance recoverable balances are
stated net of allowances for uncollectible reinsurance.
Premiums, Policy charges and fee income and Policyholders' benefits include
amounts assumed under reinsurance agreements and are net of reinsurance
ceded. Amounts received from reinsurers for policy administration are
reported in other revenues. With respect to GMIBs, a portion of the directly
written GMIBs are accounted for as insurance liabilities, but the associated
reinsurance agreements contain embedded derivatives. These embedded
derivatives are included in GMIB reinsurance contract asset, at fair value
with changes in estimated fair value reported in Net derivative gains
(losses).
If the Company determines that a reinsurance agreement does not expose the
reinsurer to a reasonable possibility of a significant loss from insurance
risk, the Company records the agreement using the deposit method of
accounting. Deposits received are included in Other liabilities and deposits
made are included within premiums, reinsurance and other receivables. As
amounts are paid or received, consistent with the underlying contracts, the
deposit assets or liabilities are adjusted. Interest on such deposits is
recorded as other revenues or other expenses, as appropriate. Periodically,
the Company evaluates the adequacy of the expected payments or recoveries
and adjusts the deposit asset or liability through other revenues or other
expenses, as appropriate.
For reinsurance contracts other than those accounted for as derivatives,
reinsurance recoverable balances are calculated using methodologies and
assumptions that are consistent with those used to calculate the direct
liabilities.
Policyholder Bonus Interest Credits
Policyholder bonus interest credits are offered on certain deferred annuity
products in the form of either immediate bonus interest credited or enhanced
interest crediting rates for a period of time. The interest crediting
expense associated with these policyholder bonus interest credits is
deferred and amortized over the lives of the underlying contracts in a
manner consistent with the amortization of DAC. Unamortized balances are
included in Other assets in the consolidated balance sheets and amortization
is included in Interest credited to policyholders' account balances in the
consolidated statements of income (loss).
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances relate to contracts or contract features
where the Company has no significant insurance risk. This liability
represents the contract value that has accrued to the benefit of the
policyholder as of the balance sheet date.
For participating traditional life insurance policies, future policy benefit
liabilities are calculated using a net level premium method on the basis of
actuarial insurance assumptions equal to guaranteed mortality and dividend
fund interest rates. The liability for annual dividends represents the
accrual of annual dividends earned. Terminal dividends are accrued in
proportion to gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on the
basis of actuarial assumptions as to mortality, persistency and interest
established at policy issue. Assumptions established at policy issue as to
mortality and persistency are based on the Company's experience that,
together with interest and expense assumptions, includes a margin for
adverse deviation. Benefit liabilities for traditional annuities during the
accumulation period are equal to accumulated policyholders' fund balances
and, after annuitization, are equal to the present value of expected future
payments. Interest rates used in establishing such liabilities range from
4.5% to 6.3% (weighted average of 5.0%) for approximately 99.2% of life
insurance liabilities and from 1.6% to 5.5% (weighted average of 4.8%) for
annuity liabilities.
F-20
Individual health benefit liabilities for active lives are estimated using
the net level premium method and assumptions as to future morbidity,
withdrawals and interest. Benefit liabilities for disabled lives are
estimated using the present value of benefits method and experience
assumptions as to claim terminations, expenses and interest. While
management believes its disability income ("DI") reserves have been
calculated on a reasonable basis and are adequate, there can be no assurance
reserves will be sufficient to provide for future liabilities.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for a product are insufficient to provide for
expected future policy benefits and expenses for that product, DAC is
written off and thereafter, if required, a premium deficiency reserve is
established by a charge to earnings.
Funding agreements are also reported in Policyholders' account balances in
the consolidated balance sheets. As a member of the Federal Home Loan Bank
of New York ("FHLBNY"), the Company has access to collateralized borrowings.
The Company may also issue funding agreements to the FHLBNY. Both the
collateralized borrowings and funding agreements would require the Company
to pledge qualified mortgage-backed assets and/or government securities as
collateral.
The Company has issued and continues to offer certain variable annuity
products with guaranteed minimum death benefits ("GMDB") and/or contain a
guaranteed minimum living benefit ("GMLB," and together with GMDB, the "GMxB
features") which, if elected by the policyholder after a stipulated waiting
period from contract issuance, guarantees a minimum lifetime annuity based
on predetermined annuity purchase rates that may be in excess of what the
contract account value can purchase at then-current annuity purchase rates.
This minimum lifetime annuity is based on predetermined annuity purchase
rates applied to a guaranteed minimum income benefit ("GMIB") base. The
Company previously issued certain variable annuity products with and
guaranteed income benefit ("GIB") features, guaranteed withdrawal benefit
for life ("GWBL"), guaranteed minimum withdrawal benefit ("GMWB") and
guaranteed minimum accumulation benefit ("GMAB") features. The Company has
also assumed reinsurance for products with GMxB features.
Reserves for products that have GMIB features, but do not have no-lapse
guarantee features, and products with GMDB features are determined by
estimating the expected value of death or income benefits in excess of the
projected contract accumulation value and recognizing the excess over the
estimated life based on expected assessments (i.e., benefit ratio). The
determination of this estimated liability is based on models that involve
numerous estimates and subjective judgments, including those regarding
expected market rates of return and volatility, contract surrender and
withdrawal rates, mortality experience, and, for contracts with the GMIB
feature, GMIB election rates. Assumptions regarding separate account
performance used for purposes of this calculation are set using a long-term
view of expected average market returns by applying a RTM approach,
consistent with that used for DAC amortization. There can be no assurance
that actual experience will be consistent with management's estimates.
Products that have a GMIB feature with a no-lapse guarantee rider
("GMIBNLG"), GIB, GWBL, GMWB and GMAB features and the assumed products with
GMIB features (collectively "GMxB derivative features") are considered
either freestanding or embedded derivatives and discussed below under
("Embedded and Freestanding Insurance Derivatives").
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings. Premium deficiency reserves
have been recorded for the group single premium annuity business, certain
interest-sensitive life contracts, structured settlements, individual
disability income and major medical. Additionally, in certain instances the
policyholder liability for a particular line of business may not be
deficient in the aggregate to trigger loss recognition, but the pattern of
earnings may be such that profits are expected to be recognized in earlier
years followed by losses in later years. This pattern of profits followed by
losses is exhibited in our VISL business and is generated by the cost
structure of the product or secondary guarantees in the contract. The
secondary guarantee ensures that, subject to specified conditions, the
policy will not terminate and will continue to provide a death benefit even
if there is insufficient policy value to cover the monthly deductions and
charges. We accrue for these Profits Followed by Losses ("PFBL") using a
dynamic approach that changes over time as the projection of future losses
change.
Embedded and Freestanding Insurance Derivatives
Reserves for products considered either embedded or freestanding derivatives
are measured at estimated fair value separately from the host variable
annuity product, with changes in estimated fair value reported in Net
derivative gains (losses). The estimated fair values of these derivatives
are determined based on the present value of projected future benefits minus
the present value of projected future fees attributable to the guarantee.
The projections of future benefits and future fees require capital markets
and actuarial assumptions, including expectations concerning policyholder
behavior. A risk-neutral valuation methodology is used under which the cash
flows from the guarantees are projected under multiple capital market
scenarios using observable risk-free rates.
F-21
Additionally, the Company cedes and assumes reinsurance of products with
GMxB features, which are considered either an embedded or freestanding
derivative and measured at fair value. The GMxB reinsurance contract asset
and liabilities' fair values reflect the present value of reinsurance
premiums and recoveries and risk margins over a range of market-consistent
economic scenarios.
Changes in the fair value of embedded and freestanding derivatives are
reported in Net derivative gains (losses). Embedded derivatives in direct
and assumed reinsurance contracts are reported in Future policyholders'
benefits and other policyholders' liabilities and embedded derivatives in
ceded reinsurance contracts are reported in the GMIB reinsurance contract
asset, at fair value in the consolidated balance sheets.
Embedded and freestanding insurance derivatives fair values are determined
based on the present value of projected future benefits minus the present
value of projected future fees. At policy inception, a portion of the
projected future guarantee fees to be collected from the policyholder equal
to the present value of projected future guaranteed benefits is attributed
to the embedded derivative. The percentage of fees included in the fair
value measurement is locked-in at inception. Fees above those amounts
represent "excess" fees and are reported in Policy charges and fee income.
Policyholders' Dividends
The amount of policyholders' dividends to be paid (including dividends on
policies included in the Closed Block) is determined annually by the board
of directors of the issuing insurance company. The aggregate amount of
policyholders' dividends is related to actual interest, mortality, morbidity
and expense experience for the year and judgment as to the appropriate level
of statutory surplus to be retained by the Company.
Separate Accounts
Generally, Separate Accounts established under New York State and Arizona
State Insurance Law are not chargeable with liabilities that arise from any
other business of the Company. Separate Accounts assets are subject to
General Account claims only to the extent Separate Accounts assets exceed
separate accounts liabilities. Assets and liabilities of the Separate
Account represent the net deposits and accumulated net investment earnings
(loss) less fees, held primarily for the benefit of policyholders, and for
which the Company does not bear the investment risk. Separate Accounts
assets and liabilities are shown on separate lines in the consolidated
balance sheets. Assets held in Separate Accounts are reported at quoted
market values or, where quoted values are not readily available or
accessible for these securities, their fair value measures most often are
determined through the use of model pricing that effectively discounts
prospective cash flows to present value using appropriate sector-adjusted
credit spreads commensurate with the security's duration, also taking into
consideration issuer-specific credit quality and liquidity. Investment
performance (including investment income, net investment gains (losses) and
changes in unrealized gains (losses)) and the corresponding amounts credited
to policyholders of such Separate Accounts are offset within the same line
in the consolidated statements of income (loss). For 2018, 2017 and 2016,
investment results of such Separate Accounts were losses of $7.2 billion,
and gains of $16.7 billion and $8.2 billion, respectively.
Deposits to Separate Accounts are reported as increases in Separate Accounts
assets and liabilities and are not reported in revenues or expenses.
Mortality, policy administration and surrender charges on all policies
including those funded by Separate Accounts are included in revenues.
The Company reports the General Account's interests in Separate Accounts as
Other trading in the consolidated balance sheets.
Broker-Dealer Revenues, Receivables and Payables
AXA Advisors and certain of the Company's other subsidiaries provide
investment management, brokerage and distribution services for affiliates
and third parties. Third-party revenues earned from these services are
reported in Other income in the Company's consolidated statement of income
(loss).
Receivables from and payables to clients include amounts due on cash and
margin transactions. Securities owned by customers are held as collateral
for receivables; such collateral is not reflected in the consolidated
financial statements.
Internal-use Software
Capitalized internal-use software, included in Other assets in the
consolidated balance sheets, is amortized on a straight-line basis over the
estimated useful life of the software that ranges between three and five
years. Capitalized amounts are periodically tested for impairment in
accordance with the guidance on impairment of long-lived assets. An
immediate charge to earnings is recognized if capitalized software costs no
longer are deemed to be recoverable. In addition, service potential is
periodically reassessed to determine whether facts and circumstances have
compressed the software's useful life such that acceleration of amortization
over a shorter period than initially determined would be required.
F-22
Long-Term Debt
Liabilities for long-term debt are primarily carried at an amount equal to
unpaid principal balance, net of unamortized discount or premium and debt
issue costs. Original-issue discount or premium and debt-issue costs are
recognized as a component of interest expense over the period the debt is
expected to be outstanding, using the interest method of amortization.
Interest expense is generally presented within Interest expense in the
consolidated statements of income (loss). See Note 11 for additional
information regarding long-term debt.
Income Taxes
The Company and certain of its consolidated subsidiaries and affiliates file
a consolidated federal income tax return. The Company provides for federal
and state income taxes currently payable, as well as those deferred due to
temporary differences between the financial reporting and tax bases of
assets and liabilities. Current federal income taxes are charged or credited
to operations based upon amounts estimated to be payable or recoverable as a
result of taxable operations for the current year. Deferred income tax
assets and liabilities are recognized based on the difference between
financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws. Valuation allowances
are established when management determines, based on available information,
that it is more likely than not that deferred tax assets will not be
realized.
Under accounting for uncertainty in income taxes guidance, the Company
determines whether it is more likely than not that a tax position will be
sustained upon examination by the appropriate taxing authorities before any
part of the benefit can be recorded in the consolidated financial
statements. Tax positions are then measured at the largest amount of benefit
that is greater than 50% likely of being realized upon settlement.
Recognition of Investment Management and Service Fees and Related Expenses
INVESTMENT MANAGEMENT, ADVISORY AND SERVICE FEES
Reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are investment management and
administrative service fees earned by AXA Equitable Funds Management Group,
LLC ("AXA Equitable FMG") as well as certain asset-based fees associated
with insurance contracts.
AXA Equitable FMG provides investment management and administrative
services, such as fund accounting and compliance services, to AXA Premier
VIP Trust ("VIP Trust"), EQ Advisors Trust ("EQAT") and 1290 Funds as well
as two private investment trusts established in the Cayman Islands, AXA
Allocation Funds Trust and AXA Offshore Multimanager Funds Trust
(collectively, the "Other AXA Trusts"). The contracts supporting these
revenue streams create a distinct, separately identifiable performance
obligation for each day the assets are managed for the performance of a
series of services that are substantially the same and have the same pattern
of transfer to the customer. Accordingly, these investment management,
advisory, and administrative service base fees are recorded over time as
services are performed and entitle the Company to variable consideration.
Base fees, generally calculated as a percentage of assets under management
("AUM"), are recognized as revenue at month-end when the transaction price
no longer is variable and the value of the consideration is determined.
These fees are not subject to claw back and there is minimal probability
that a significant reversal of the revenue recorded will occur.
Sub-advisory and sub-administrative expenses associated with these services
are calculated and recorded as the related services are performed in Other
operating costs and expense in the consolidated statements of income (loss)
as the Company is acting in a principal capacity in these transactions and,
as such, reflects these revenues and expenses on a gross basis.
DISTRIBUTION SERVICES
Revenues from distribution services include fees received as partial
reimbursement of expenses incurred in connection with the sale of certain
mutual funds and the 1290 Funds and for the distribution primarily of EQAT
and VIP Trust shares to separate accounts in connection with the sale of
variable life and annuity contracts. The amount and timing of revenues
recognized from performance of these distribution services often is
dependent upon the contractual arrangements with the customer and the
specific product sold as further described below.
Most open-end management investment companies, such as U.S. funds and the
EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1
of the Investment Company Act that allows for certain share classes to pay
out of assets, distribution and service fees for the distribution and sale
of its shares ("12b-1 Fees"). These open-end management investment companies
have such agreements with the Company, and the Company has selling and
distribution agreements pursuant to which it pays sales commissions to the
financial intermediaries that distribute the shares. These agreements may be
terminated by either party upon notice (generally 30 days) and do not
obligate the financial intermediary to sell any specific amount of shares.
F-23
The Company records 12b-1 fees monthly based upon a percentage of the net
asset value ("NAV") of the funds. At month-end, the variable consideration
of the transaction price is no longer constrained as the NAV can be
calculated and the value of consideration is determined. These services are
separate and distinct from other asset management services as the customer
can benefit from these services independently of other services. The Company
accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the
expenses are incurred. The Company is acting in a principal capacity in
these transactions; as such, these revenues and expenses are recorded on a
gross basis in the consolidated statements of income (loss).
OTHER REVENUES
Also reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are other revenues from contracts
with customers, primarily consisting of mutual fund reimbursements and other
brokerage income.
OTHER INCOME
Revenues from contracts with customers reported as Other Income in the
Company's consolidated statements of income (loss) primarily consist of
advisory account fees and brokerage commissions from the Company's
subsidiary broker-dealer operations and sales commissions from the Company's
general agent for the distribution of non-affiliate insurers' life insurance
and annuity products. These revenues are recognized at month-end when
constraining factors, such as AUM and product mix, are resolved and the
transaction pricing no longer is variable such that the value of
consideration can be determined.
Discontinued Operations
The results of operations of a component of the Company that has been
disposed of are reported in discontinued operations if certain criteria are
met; such as if the disposal represents a strategic shift that has or will
have a major effect on the Company's operations and financial results. The
results of AB are reflected in the Company's consolidated financial
statements as discontinued operations and, therefore, are presented as
assets and liabilities of disposed subsidiary on the consolidated balance
sheets and net income (loss) from discontinued operations, net of taxes and
noncontrolling interest on the consolidated statements of income
(loss). Intercompany transactions between the Company and AB prior to the
disposal have been eliminated. See Note 19 for information on discontinued
operations and transactions with AB.
Assumption Updates and Model Changes
In 2018, the Company began conducting its annual review of our assumptions
and models during the third quarter, consistent with industry practice. The
annual review encompasses assumptions underlying the valuation of unearned
revenue liabilities, embedded derivatives for our insurance business,
liabilities for future policyholder benefits, DAC and deferred sales
inducement assets ("DSI"). As a result of this review, some assumptions were
updated, resulting in increases and decreases in the carrying values of
these product liabilities and assets.
The net impact of assumption changes in the third quarter of 2018 decreased
Policy charges and fee income by $12 million, decreased Policyholders'
benefits by $684 million, increased Net derivative losses by $1.1 billion,
and decreased the Amortization of DAC by $165 million. This resulted in a
decrease in the third quarter of 2018 in Income (loss) from operations,
before income taxes of $228 million and decreased Net income (loss) by
approximately $187 million.
In 2017, the Company made several assumption updates and model changes,
including the following: (1) updated the expectation of long-term Separate
Accounts volatility used in estimating policyholders' benefits for variable
annuities with GMDB and GMIB guarantees and variable universal life
contracts with secondary guarantees; (2) updated the estimated duration used
to calculate policyholders' benefits for variable annuities with GMDB and
GMIB guarantees and the period over which DAC is amortized; (3) updated
policyholder behavior assumptions based on emerging experience, including
expectations of long-term lapse and partial withdrawal rates for variable
annuities with GMxB features; (4) updated premium funding assumptions for
certain universal life and variable universal life products with secondary
guarantees; (5) completed its periodic review and updated its long-term
mortality assumption for universal, variable universal and traditional life
products; (6) updated the assumption for long-term General Account spread
and yield assumptions in the DAC amortization and loss recognition testing
calculations for universal life, variable universal life and deferred
annuity business lines; (7) updated our maintenance expense assumption for
universal life and variable universal life products; and (8) implemented
other actuarial assumption updates and model changes, resulting in the full
release of the reserve. The net impact of assumption changes in 2017
increased Policyholders' benefits by $23 million, decreased the Amortization
of DAC by $247 million, decreased Policy charges and fee income by
$88 million, increased the fair value of our GMIB reinsurance asset by
$1.5 billion and decreased the fair value of the GMIBNLG liability by
$447 million. This resulted in an increase in Income (loss) from operations,
before income taxes of $1.7 billion and increased Net income by
approximately $1.1 billion.
In 2016, the Company made several assumption updates and model changes
including the following (1) updated the premium funding assumption used in
setting variable life policyholder benefit reserves; (2) made changes in the
model used in calculating premium loads,
F-24
which increased interest sensitive life policyholder benefit reserves;
(3) updated its mortality assumption for certain variable interest-sensitive
life ("VISL") products as a result of favorable mortality experience for
some of its older products and unfavorable mortality experience on some of
its newer products and (4) updated the General Account spread and yield
assumptions for certain VISL products to reflect lower expected investment
yields. The net impact of assumption updates and model changes in 2016
decreased Policyholders' benefits by $135 million, increased the
Amortization of DAC by $193 million, increased Policy charges and fee income
by $35 million, decreased Income (loss) from operations, before income taxes
by $23 million and decreased Net income by approximately $15 million.
Revision of Prior Year Financial Statements
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these mis-classifications were
not material to the financial statements of any period. However, in order to
improve the consistency and comparability of the financial statements,
management revised the consolidated statements of cash flows for the year
ended December 31, 2017. See Note 21 for further information.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification.
The reclassification adjustments for the years ended December 31, 2017 and
2016 are presented in the table below. Capitalization of DAC reclassified to
Compensation and benefits, Commissions and distribution plan payments, and
Other operating costs and expenses reduced the amounts previously reported
in those expense line items, while the capitalization of DAC reclassified
from the Amortization of deferred policy acquisition costs line item
increases that expense line item.
Years Ended December 31,
----------------------------
2017 2016
--------------- ------------
(in millions)
REDUCTIONS TO EXPENSE LINE ITEMS:
Compensation and benefits............................ $ 128 $ 128
Commissions and distribution plan payments........... 443 460
Other operating costs and expenses................... 7 6
--------------- ------------
Total reductions.................................... $ 578 $ 594
=============== ============
INCREASE TO EXPENSE LINE ITEM:
--------------- ------------
Amortization of deferred policy acquisition costs.... $ 578 $ 594
=============== ============
|
F-25
3) INVESTMENTS
Fixed Maturities
The following tables provide information relating to fixed maturities
classified as AFS. As a result of the adoption of "Financial
Instruments -- Recognition and Measurement of Financial Assets and Financial
Liabilities" (ASU 2016-01) on January 1, 2018 (see Note 2), equity
securities are no longer classified and accounted for as available-for-sale
securities.
AVAILABLE-FOR-SALE SECURITIES BY CLASSIFICATION
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED OTTI
COST GAINS LOSSES FAIR VALUE IN AOCI/(4)/
---------- ------------- ----------- ----------- ------------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 26,690 $ 385 $ 699 $ 26,376 $ --
U.S. Treasury, government and agency....... 13,646 143 454 13,335 --
States and political subdivisions.......... 408 47 1 454 --
Foreign governments........................ 515 17 13 519 --
Residential mortgage-backed/(2)/........... 193 9 -- 202 --
Asset-backed/(3)/.......................... 600 1 11 590 2
Redeemable preferred stock................. 440 16 17 439 --
---------- ------------- ----------- ----------- ------------
TOTAL AT DECEMBER 31, 2018................... $ 42,492 $ 618 $ 1,195 $ 41,915 $ 2
========== ============= =========== =========== ============
December 31, 2017:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 20,596 $ 942 $ 56 $ 21,482 $ --
U.S. Treasury, government and agency....... 12,644 676 185 13,135 --
States and political subdivisions.......... 414 67 -- 481 --
Foreign governments........................ 387 27 5 409 --
Residential mortgage-backed/(2)/........... 236 15 -- 251 --
Asset-backed/(3)/.......................... 93 3 -- 96 2
Redeemable preferred stock................. 461 44 1 504 --
---------- ------------- ----------- ----------- ------------
Total Fixed Maturities.................... 34,831 1,774 247 36,358 2
Equity securities............................ 157 -- -- 157 --
---------- ------------- ----------- ----------- ------------
Total at December 31, 2017................... $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2
========== ============= =========== =========== ============
|
/(1)/Corporate fixed maturities include both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
/(4)/Amounts represent OTTI losses in AOCI, which were not included in
income (loss) in accordance with current accounting guidance.
The contractual maturities of AFS fixed maturities at December 31, 2018 are
shown in the table below. Bonds not due at a single maturity date have been
included in the table in the final year of maturity. Actual maturities may
differ from contractual maturities because borrowers may have the right to
call or prepay obligations with or without call or prepayment penalties.
F-26
CONTRACTUAL MATURITIES OF AVAILABLE-FOR-SALE FIXED MATURITIES
AMORTIZED
COST FAIR VALUE
---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Due in one year or less................................ $ 2,085 $ 2,090
Due in years two through five.......................... 8,087 8,141
Due in years six through ten........................... 14,337 14,214
Due after ten years.................................... 16,750 16,239
---------- ----------
Subtotal............................................ 41,259 40,684
Residential mortgage-backed securities................. 193 202
Asset-backed securities................................ 600 590
Redeemable preferred stock............................. 440 439
---------- ----------
TOTAL AT DECEMBER 31, 2018............................. $ 42,492 $ 41,915
========== ==========
|
The following table shows proceeds from sales, gross gains (losses) from
sales and OTTI for AFS fixed maturities for the years ended December 31,
2018, 2017 and 2016:
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Proceeds from sales............................... $ 7,136 $ 7,232 $ 4,324
========= ========= =========
Gross gains on sales.............................. $ 145 $ 98 $ 111
========= ========= =========
Gross losses on sales............................. $ (103) $ (211) $ (58)
========= ========= =========
Total OTTI........................................ $ (37) $ (13) $ (65)
Non-credit losses recognized in OCI............... -- -- --
--------- --------- ---------
Credit losses recognized in net income (loss)..... $ (37) $ (13) $ (65)
========= ========= =========
|
The following table sets forth the amount of credit loss impairments on AFS
fixed maturities held by the Company at the dates indicated and the
corresponding changes in such amounts:
FIXED MATURITIES -- CREDIT LOSS IMPAIRMENTS
2018 2017
-------- --------
(IN MILLIONS)
Balances at January 1,................................. $ (10) $ (190)
Previously recognized impairments on securities that
matured, paid, prepaid or sold....................... 1 193
Recognized impairments on securities impaired to fair
value this period/(1)/............................... -- --
Impairments recognized this period on securities not
previously impaired.................................. (37) (13)
Additional impairments this period on securities
previously impaired.................................. -- --
Increases due to passage of time on previously
recorded credit losses............................... -- --
Accretion of previously recognized impairments due to
increases in expected cash flows..................... -- --
-------- --------
Balances at December 31,............................... $ (46) $ (10)
======== ========
|
/(1)/Represents circumstances where the Company determined in the current
period that it intends to sell the security or it is more likely than
not that it will be required to sell the security before recovery of the
security's amortized cost.
F-27
Net unrealized investment gains (losses) on fixed maturities classified as
AFS are included in the consolidated balance sheets as a component of AOCI.
The table below presents these amounts as of the dates indicated:
AS OF DECEMBER 31,
--------------------
2018 2017
-------- ----------
(IN MILLIONS)
AFS Securities:
Fixed maturities:
With OTTI loss.......................................... $ -- $ 1
All other............................................... (577) 1,526
-------- ----------
Net Unrealized Gains (Losses).............................. $ (577) $ 1,527
======== ==========
|
Changes in net unrealized investment gains (losses) recognized in AOCI
include reclassification adjustments to reflect amounts realized in Net
income (loss) for the current period that had been part of OCI in earlier
periods. The tables that follow below present a roll-forward of net
unrealized investment gains (losses) recognized in AOCI, split between
amounts related to fixed maturities on which an OTTI loss has been
recognized and all other:
NET UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES WITH OTTI LOSSES
AOCI GAIN
(LOSS)
NET UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
--------------- ------------ --------------- ------------ ----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1 $ 1 $ (1) $ (5) $ (4)
Net investment gains (losses) arising during
the period................................. (1) -- -- -- (1)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (1) -- -- (1)
Deferred income taxes..................... -- -- -- 5 5
Policyholders' liabilities................ -- -- 1 -- 1
--------------- ------------ --------------- ------------ ----------------
BALANCE, DECEMBER 31, 2018................... $ -- $ -- $ -- $ -- $ --
=============== ============ =============== ============ ================
Balance, January 1, 2017..................... $ 19 $ (1) $ (10) $ (3) $ 5
Net investment gains (losses) arising during
the period................................. (18) -- -- -- (18)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 2 -- -- 2
Deferred income taxes..................... -- -- -- (2) (2)
Policyholders' liabilities................ -- -- 9 -- 9
--------------- ------------ --------------- ------------ ----------------
Balance, December 31, 2017................... $ 1 $ 1 $ (1) $ (5) $ (4)
=============== ============ =============== ============ ================
|
/(1)/Represents "transfers in" related to the portion of OTTI losses
recognized during the period that were not recognized in income (loss)
for securities with no prior OTTI loss.
F-28
ALL OTHER NET UNREALIZED INVESTMENT GAINS (LOSSES) IN AOCI
NET AOCI GAIN (LOSS)
UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
------------- ----------- --------------- ------------- -----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1,526 $ (315) $ (232) $ (300) $ 679
Net investment gains (losses) arising during
the period................................. (2,098) -- -- -- (2,098)
Reclassification adjustment:
Included in Net income (loss)............. (5) -- -- -- (5)
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 354 -- -- 354
Deferred income taxes/(2)/................ -- -- -- 425 425
Policyholders' liabilities................ -- -- 177 -- 177
------------- ----------- --------------- ------------- -----------------
BALANCE, DECEMBER 31, 2018................... $ (577) $ 39 $ (55) $ 125 $ (468)
============= =========== =============== ============= =================
Balance, January 1, 2017..................... $ 428 $ (104) $ (188) $ (47) $ 89
Net investment gains (losses) arising during
the period................................. 1,085 -- -- -- 1,085
Reclassification adjustment:
Included in Net income (loss)............. 13 -- -- -- 13
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (211) -- -- (211)
Deferred income taxes..................... -- -- -- (253) (253)
Policyholders' liabilities................ -- -- (44) -- (44)
------------- ----------- --------------- ------------- -----------------
Balance, December 31, 2017................... $ 1,526 $ (315) $ (232) $ (300) $ 679
============= =========== =============== ============= =================
|
/(1)/Represents "transfers out" related to the portion of OTTI losses during
the period that were not recognized in income (loss) for securities with
no prior OTTI loss.
/(2)/Includes a $86 million income tax benefit from the impact of adoption of
ASU 2018-02.
F-29
The following tables disclose the fair values and gross unrealized losses of
the 1,471 issues at December 31, 2018 and the 620 issues at December 31,
2017 of fixed maturities that are not deemed to be other-than-temporarily
impaired, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position for
the specified periods at the dates indicated:
LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
--------------------- --------------------- ---------------------
GROSS GROSS GROSS
UNREALIZED UNREALIZED UNREALIZED
FAIR VALUE LOSSES FAIR VALUE LOSSES FAIR VALUE LOSSES
---------- ---------- ---------- ---------- ---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate.................................. $ 8,369 $ 306 $ 6,161 $ 393 $ 14,530 $ 699
U.S. Treasury, government and agency....... 2,636 68 3,154 386 5,790 454
States and political subdivisions.......... -- -- 19 1 19 1
Foreign governments........................ 109 3 76 10 185 13
Residential mortgage-backed................ -- -- 13 -- 13 --
Asset-backed............................... 558 11 6 -- 564 11
Redeemable preferred stock................. 160 12 31 5 191 17
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 11,832 $ 400 $ 9,460 $ 795 $ 21,292 $ 1,195
========== ========== ========== ========== ========== ==========
December 31, 2017:
------------------
Fixed Maturities:
Corporate.................................. $ 2,102 $ 17 $ 1,163 $ 39 $ 3,265 $ 56
U.S. Treasury, government and agency....... 2,150 6 3,005 179 5,155 185
States and political subdivisions.......... 20 -- -- -- 20 --
Foreign governments........................ 11 -- 73 5 84 5
Residential mortgage-backed................ 18 -- -- -- 18 --
Asset-backed............................... 7 -- 2 -- 9 --
Redeemable preferred stock................. 7 -- 12 1 19 1
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247
========== ========== ========== ========== ========== ==========
|
The Company's investments in fixed maturities do not include concentrations
of credit risk of any single issuer greater than 10% of the consolidated
equity of the Company, other than securities of the U.S. government, U.S.
government agencies, and certain securities guaranteed by the U.S.
government. The Company maintains a diversified portfolio of corporate
securities across industries and issuers and does not have exposure to any
single issuer in excess of 0.8% of total investments. The largest exposures
to a single issuer of corporate securities held at December 31, 2018 and
2017 were $210 million and $182 million, respectively.
Corporate high yield securities, consisting primarily of public high yield
bonds, are classified as other than investment grade by the various rating
agencies, i.e., a rating below Baa3/BBB- or the National Association of
Insurance Commissioners ("NAIC") designation of 3 (medium investment grade),
4 or 5 (below investment grade) or 6 (in or near default). At December 31,
2018 and 2017, respectively, approximately $1,228 million and
$1,309 million, or 2.9% and 3.8%, of the $42,492 million and $34,831 million
aggregate amortized cost of fixed maturities held by the Company were
considered to be other than investment grade. These securities had net
unrealized (losses) and gains of $(30) million and $5 million at
December 31, 2018 and 2017, respectively.
F-30
At December 31, 2018 and 2017, respectively, the $795 million and
$224 million of gross unrealized losses of twelve months or more were
concentrated in corporate and U.S. Treasury, government and agency
securities. In accordance with the policy described in Note 2, the Company
concluded that an adjustment to income for OTTI for these securities was not
warranted at either December 31, 2018 or 2017. At December 31, 2018, the
Company did not intend to sell the securities nor will it likely be required
to dispose of the securities before the anticipated recovery of their
remaining amortized cost basis.
The Company does not originate, purchase or warehouse residential mortgages
and is not in the mortgage servicing business.
At December 31, 2018, the carrying value of fixed maturities that were
non-income producing for the twelve months preceding that date was
$1 million.
At December 31, 2018 and 2017, respectively, the fair value of the Company's
trading account securities was $15,166 million and $12,277 million. Also at
December 31, 2018 and 2017, respectively, trading account securities
included the General Account's investment in Separate Accounts, which had
carrying values of $48 million and $49 million.
Mortgage Loans
The payment terms of mortgage loans may from time to time be restructured or
modified.
At December 31, 2018 and 2017, the carrying values of problem commercial
mortgage loans on real estate that had been classified as non-accrual loans
were $19 million and $19 million, respectively.
VALUATION ALLOWANCES FOR MORTGAGE LOANS:
The change in the valuation allowance for credit losses for commercial
mortgage loans during the years ended December 31, 2018, 2017 and 2016 was
as follows:
COMMERCIAL MORTGAGE LOANS
------------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance, January 1,................ $ 8 $ 8 $ 6
Charge-offs............................... -- -- --
Recoveries................................ (1) -- (2)
Provision................................. -- -- 4
----------- ----------- -----------
Ending Balance, December 31,................. $ 7 $ 8 $ 8
=========== =========== ===========
Ending Balance, December 31,.................
Individually Evaluated for Impairment..... $ 7 $ 8 $ 8
=========== =========== ===========
|
There were no allowances for credit losses for agricultural mortgage loans
in 2018, 2017 and 2016.
The following tables provide information relating to the loan-to-value and
debt service coverage ratios for commercial and agricultural mortgage loans
at December 31, 2018 and 2017. The values used in these ratio calculations
were developed as part of the periodic review of the commercial and
agricultural mortgage loan portfolio, which includes an evaluation of the
underlying collateral value.
F-31
MORTGAGE LOANS BY LOAN-TO-VALUE AND DEBT SERVICE COVERAGE RATIOS
DEBT SERVICE COVERAGE RATIO/(1)/
-------------------------------------------------
LESS TOTAL
GREATER 1.8X TO 1.5X TO 1.2X TO 1.0X TO THAN MORTGAGE
THAN 2.0X 2.0X 1.8X 1.5X 1.2X 1.0X LOANS
LOAN-TO-VALUE RATIO:/(2)/ --------- ------- -------- ------- ------- ------ --------
(IN MILLIONS)
DECEMBER 31, 2018:
COMMERCIAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 780 $ 21 $ 247 $ 24 $ -- $ -- $ 1,072
50% - 70%.................................. 4,908 656 1,146 325 151 -- 7,186
70% - 90%.................................. 260 -- 117 370 98 -- 845
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 5,948 $ 677 $ 1,510 $ 746 $ 249 $ -- $ 9,130
========= ======= ======== ====== ======= ====== ========
AGRICULTURAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611
50% - 70%.................................. 112 46 246 379 224 31 1,038
70% - 90%.................................. -- -- -- 19 27 -- 46
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695
========= ======= ======== ====== ======= ====== ========
TOTAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 1,062 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,683
50% - 70%.................................. 5,020 702 1,392 704 375 31 8,224
70% - 90%.................................. 260 -- 117 389 125 -- 891
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Mortgage Loans......................... $ 6,342 $ 870 $ 2,023 $1,687 $ 821 $ 82 $ 11,825
========= ======= ======== ====== ======= ====== ========
December 31, 2017:
Commercial Mortgage Loans/(1)/
0% - 50%................................... $ 742 $ -- $ 320 $ 74 $ -- $ -- $ 1,136
50% - 70%.................................. 4,088 682 1,066 428 145 -- 6,409
70% - 90%.................................. 169 110 196 272 50 -- 797
90% plus................................... -- -- 27 -- -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ -- $ 8,369
========= ======= ======== ====== ======= ====== ========
Agricultural Mortgage Loans/(1)/
0% - 50%................................... $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557
50% - 70%.................................. 111 46 227 359 221 49 1,013
70% - 90%.................................. -- -- -- 4 -- -- 4
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574
========= ======= ======== ====== ======= ====== ========
|
F-32
Debt Service Coverage Ratio/(1)/
-------------------------------------------------
Less Total
Greater 1.8x to 1.5x to 1.2x to 1.0x to than Mortgage
than 2.0x 2.0x 1.8x 1.5x 1.2x 1.0x Loans
Loan-to-Value Ratio:/(2)/ --------- ------- -------- -------- ------- ----- ---------
(in millions)
Total Mortgage Loans/(1)/
0% - 50%................................... $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693
50% - 70%.................................. 4,199 728 1,293 787 366 49 7,422
70% - 90%.................................. 169 110 196 276 50 -- 801
90% plus................................... -- -- 27 -- -- -- 27
-------- ------ -------- -------- ------ ----- ---------
Total Mortgage Loans......................... $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943
======== ====== ======== ======== ====== ===== =========
|
/(1)/The debt service coverage ratio is calculated using the most recently
reported operating income results from property operations divided by
annual debt service.
/(2)/The loan-to-value ratio is derived from current loan balance divided by
the fair market value of the property. The fair market value of the
underlying commercial properties is updated annually.
The following table provides information relating to the aging analysis of
past due mortgage loans at December 31, 2018 and 2017, respectively:
AGE ANALYSIS OF PAST DUE MORTGAGE LOANS
RECORDED
INVESTMENT
90 DAYS OR
90 TOTAL MORE
30-59 60-89 DAYS FINANCING AND
DAYS DAYS OR MORE TOTAL CURRENT RECEIVABLES ACCRUING
------- ------ ------- -------- ---------- ----------- -----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Commercial................................. $ -- $ -- $ 27 $ 27 $ 9,103 $ 9,130 $ --
Agricultural............................... 18 8 42 68 2,627 2,695 40
------- ------ ------- -------- ---------- ----------- -----------
TOTAL MORTGAGE LOANS......................... $ 18 $ 8 $ 69 $ 95 $ 11,730 $ 11,825 $ 40
======= ====== ======= ======== ========== =========== ===========
December 31, 2017:
------------------
Commercial................................. $ 27 $ -- $ -- $ 27 $ 8,342 $ 8,369 $ --
Agricultural............................... 49 3 22 74 2,500 2,574 22
------- ------ ------- -------- ---------- ----------- -----------
Total Mortgage Loans......................... $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22
======= ====== ======= ======== ========== =========== ===========
|
The following table provides information relating to impaired mortgage loans
at December 31, 2018 and 2017, respectively:
IMPAIRED MORTGAGE LOANS
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- --------- --------- -------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ 2 2 -- -- --
--------- --------- --------- -------------- ---------
TOTAL........................................ $ 2 $ 2 $ -- $ -- $ --
========= ========= ========= ============== =========
|
F-33
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- ---------- ---------- -------------- ----------
(IN MILLIONS)
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (7) $ 27 $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
TOTAL........................................ $ 27 $ 31 $ (7) $ 27 $ --
========== ========== ========== ============== ==========
December 31, 2017:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ -- $ -- $ -- $ -- $ --
========== ========== ========== ============== ==========
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (8) $ 27 $ 2
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ 27 $ 31 $ (8) $ 27 $ 2
========== ========== ========== ============== ==========
|
/(1)/Represents a five-quarter average of recorded amortized cost.
Derivatives and Offsetting Assets and Liabilities
The Company uses derivatives as part of its overall asset/liability risk
management primarily to reduce exposures to equity market and interest rate
risks. Derivative hedging strategies are designed to reduce these risks from
an economic perspective and are all executed within the framework of a
"Derivative Use Plan" approved by applicable states' insurance law.
Derivatives are generally not accounted for using hedge accounting, with the
exception of Treasury Inflation-Protected Securities ("TIPS"), which is
discussed further below. Operation of these hedging programs is based on
models involving numerous estimates and assumptions, including, among
others, mortality, lapse, surrender and withdrawal rates, election rates,
fund performance, market volatility and interest rates. A wide range of
derivative contracts are used in these hedging programs, including exchange
traded equity, currency and interest rate futures contracts, total return
and/or other equity swaps, interest rate swap and floor contracts, bond and
bond-index total return swaps, swaptions, variance swaps and equity options,
credit and foreign exchange derivatives, as well as bond and repo
transactions to support the hedging. The derivative contracts are
collectively managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in capital markets. In addition, as part of its hedging strategy,
the Company targets an asset level for all variable annuity products at or
above a CTE98 level under most economic scenarios (CTE is a statistical
measure of tail risk which quantifies the total asset requirement to sustain
a loss if an event outside a given probability level has occurred. CTE98
denotes the financial resources a company would need to cover the average of
the worst 2% of scenarios.)
DERIVATIVES UTILIZED TO HEDGE EXPOSURE TO VARIABLE ANNUITIES WITH GUARANTEE
FEATURES
The Company has issued and continues to offer variable annuity products with
GMxB features. The risk associated with the GMDB feature is that
under-performance of the financial markets could result in GMDB benefits, in
the event of death, being higher than what accumulated policyholders'
account balances would support. The risk associated with the GMIB feature is
that under-performance of the financial markets could result in the present
value of GMIB, in the event of annuitization, being higher than what
accumulated policyholders' account balances would support, taking into
account the relationship between current annuity purchase rates and the GMIB
guaranteed annuity purchase rates. The risk associated with products that
have a GMxB derivative features liability is that under-performance of the
financial markets could result in the GMxB derivative features' benefits
being higher than what accumulated policyholders' account balances would
support.
For GMxB features, the Company retains certain risks including basis, credit
spread and some volatility risk and risk associated with actual versus
expected actuarial assumptions for mortality, lapse and surrender,
withdrawal and policyholder election rates, among other things. The
derivative contracts are managed to correlate with changes in the value of
the GMxB features that result from financial markets movements. A portion of
exposure to realized equity volatility is hedged using equity options and
variance swaps and a portion of exposure to credit risk is hedged using
total return swaps on fixed income indices. Additionally, the Company is
party to total return swaps for which the reference U.S. Treasury securities
are contemporaneously purchased from the market and sold to the swap
counterparty. As these transactions result in a transfer of control of the
U.S. Treasury securities to the swap counterparty, the Company derecognizes
these securities with consequent gain or loss from the sale. The Company has
also purchased reinsurance contracts to mitigate the risks associated with
GMDB features and the impact of potential market fluctuations on future
policyholder elections of GMIB features contained in certain annuity
contracts issued by the Company.
F-34
DERIVATIVES UTILIZED TO HEDGE CREDITING RATE EXPOSURE ON SCS, SIO, MSO AND
IUL PRODUCTS/INVESTMENT OPTIONS
The Company hedges crediting rates in the Structured Capital Strategies
("SCS") variable annuity, Structured Investment Option in the EQUI-VEST
variable annuity series ("SIO"), Market Stabilizer Option ("MSO") in the
variable life insurance products and Indexed Universal Life ("IUL")
insurance products. These products permit the contract owner to participate
in the performance of an index, ETF or commodity price movement up to a cap
for a set period of time. They also contain a protection feature, in which
the Company will absorb, up to a certain percentage, the loss of value in an
index, ETF or commodity price, which varies by product segment.
In order to support the returns associated with these features, the Company
enters into derivative contracts whose payouts, in combination with fixed
income investments, emulate those of the index, ETF or commodity price,
subject to caps and buffers without any basis risk due to market exposures,
thereby substantially reducing any exposure to market-related earnings
volatility.
DERIVATIVES USED FOR GENERAL ACCOUNT INVESTMENT PORTFOLIO
The Company maintains a strategy in its General Account investment portfolio
to replicate the credit exposure of fixed maturity securities otherwise
permissible for investment under its investment guidelines through the sale
of credit default swaps ("CDSs"). Under the terms of these swaps, the
Company receives quarterly fixed premiums that, together with any initial
amount paid or received at trade inception, replicate the credit spread
otherwise currently obtainable by purchasing the referenced entity's bonds
of similar maturity. These credit derivatives generally have remaining terms
of five years or less and are recorded at fair value with changes in fair
value, including the yield component that emerges from initial amounts paid
or received, reported in Net investment income (loss). The Company manages
its credit exposure taking into consideration both cash and derivatives
based positions and selects the reference entities in its replicated credit
exposures in a manner consistent with its selection of fixed maturities. In
addition, the Company generally transacts the sale of CDSs in single name
reference entities of investment grade credit quality and with
counterparties subject to collateral posting requirements. If there is an
event of default by the reference entity or other such credit event as
defined under the terms of the swap contract, the Company is obligated to
perform under the credit derivative and, at the counterparty's option,
either pay the referenced amount of the contract less an auction-determined
recovery amount or pay the referenced amount of the contract and receive in
return the defaulted or similar security of the reference entity for
recovery by sale at the contract settlement auction. To date, there have
been no events of default or circumstances indicative of a deterioration in
the credit quality of the named referenced entities to require or suggest
that the Company will have to perform under these CDSs. The maximum
potential amount of future payments the Company could be required to make
under these credit derivatives is limited to the par value of the referenced
securities which is the dollar or euro-equivalent of the derivative notional
amount. The Standard North American CDS Contract ("SNAC") or Standard
European Corporate Contract ("STEC") under which the Company executes these
CDS sales transactions does not contain recourse provisions for recovery of
amounts paid under the credit derivative.
The Company purchased 30-year TIPS and other sovereign bonds, both inflation
linked and non-inflation linked, as General Account investments and enters
into asset or cross-currency basis swaps, to result in payment of the given
bond's coupons and principal at maturity in the bond's specified currency to
the swap counterparty in return for fixed dollar amounts. These swaps, when
considered in combination with the bonds, together result in a net position
that is intended to replicate a dollar-denominated fixed-coupon cash bond
with a yield higher than a term-equivalent U.S. Treasury bond.
The Company implemented a strategy to hedge a portion of the credit exposure
in its General Account investment portfolio by buying protection through a
swap. These are swaps on the "super senior tranche" of the investment grade
CDX index. Under the terms of these swaps, the Company pays quarterly fixed
premiums that, together with any initial amount paid or received at trade
inception, serve as premiums paid to hedge the risk arising from multiple
defaults of bonds referenced in the CDX index. These credit derivatives have
terms of five years or less and are recorded at fair value with changes in
fair value, including the yield component that emerges from initial amounts
paid or received, reported in Net derivative gains (losses).
In 2016, the Company implemented a program to mitigate its duration gap
using total return swaps for which the reference U.S. Treasury securities
are sold to the swap counterparty under arrangements economically similar to
repurchase agreements. As these transactions result in a transfer of control
of the U.S. Treasury securities to the swap counterparty, the Company
derecognizes these securities with consequent gain or loss from the sale.
Under this program, the Company derecognized approximately $3,905 million of
U.S. Treasury securities for which the Company received proceeds of
approximately $3,905 million at inception of the total return swap contract.
Under the terms of these swaps, the Company retains ongoing exposure to the
total returns of the underlying U.S. Treasury securities in exchange for a
financing cost. At December 31, 2018, the aggregate fair value of U.S.
Treasury securities derecognized under this program was approximately
$3,690 million. Reported in Other invested assets in the Company's balance
sheet at December 31, 2018 is approximately $24 million, representing the
fair value of the total return swap contracts.
F-35
DERIVATIVES USED TO HEDGE CURRENCY FLUCTUATIONS ON AFFILIATED LOANS
The Company uses foreign exchange derivatives to reduce exposure to currency
fluctuations that may arise from non-U.S.-dollar denominated financial
instruments. The Company had a currency swap contract with AXA to hedge
foreign exchange exposure from affiliated loans, which matured in March 2018.
The tables below present quantitative disclosures about the Company's
derivative instruments, including those embedded in other contracts required
to be accounted for as derivative instruments:
DERIVATIVE INSTRUMENTS BY CATEGORY
AT DECEMBER 31, 2018
FAIR VALUE
------------------------
GAINS (LOSSES)
NOTIONAL ASSET LIABILITY REPORTED IN
AMOUNT DERIVATIVES DERIVATIVES EARNINGS (LOSS)
--------- ------------ ----------- ---------------
(IN MILLIONS)
FREESTANDING DERIVATIVES/(1)(4)/:
Equity contracts:
Futures.................................. $ 10,411 $ -- $ -- $ 550
Swaps.................................... 7,697 140 168 675
Options.................................. 21,698 2,119 1,163 (899)
Interest rate contracts:
Swaps.................................... 27,003 632 194 (456)
Futures.................................. 11,448 -- -- 118
Credit contracts:
Credit default swaps..................... 1,282 17 -- (3)
Other freestanding contracts:
Foreign currency contracts............... 2,097 27 14 6
Margin................................... -- 7 5 --
Collateral............................... -- 3 1,564 --
EMBEDDED DERIVATIVES:
GMIB reinsurance contracts/(4)/.......... -- 1,991 -- (1,068)
GMxB derivative features
liability/(2)(4)/....................... -- -- 5,431 (786)
SCS, SIO, MSO and IUL indexed
features/(3)(4)/........................ -- -- 687 853
--------- ------------ ----------- ---------------
Balances, December 31, 2018............. $ 81,636 $ 4,936 $ 9,226 $ (1,010)
========= ============ =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and IUL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Derivative Instruments by Category
At December 31, 2017
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
-------- ----------- ----------- ---------------
(in millions)
Freestanding Derivatives/(1)(4)/:
Equity contracts:
Futures.................................... $ 2,950 $ -- $ -- $ (655)
Swaps...................................... 4,587 3 125 (842)
Options.................................... 20,630 3,334 1,426 1,203
|
F-36
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
--------- ----------- ----------- ---------------
(in millions)
Interest rate contracts:
Swaps........................................... $ 18,988 $ 319 $ 190 $ 655
Futures......................................... 11,032 -- -- 125
Credit contracts:
Credit default swaps............................ 2,057 34 2 21
Other freestanding contracts:
Foreign currency contracts...................... 1,297 11 2 (38)
Margin.......................................... -- 18 -- --
Collateral...................................... -- 3 1,855 --
Embedded Derivatives:
GMIB reinsurance contracts/(4)/................. -- 10,488 -- 69
GMxB derivative features liability/(2)(4)/...... -- -- 4,256 1,592
SCS, SIO, MSO and IUL indexed features/(3)(4)/.. -- -- 1,698 (1,236)
--------- ----------- ----------- ---------------
Balances, December 31, 2017.................... $ 61,541 $ 14,210 $ 9,554 $ 894
========= =========== =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and UIL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Equity-Based and Treasury Futures Contracts Margin
All outstanding equity-based and treasury futures contracts at December 31,
2018 are exchange-traded and net settled daily in cash. At December 31,
2018, the Company had open exchange-traded futures positions on: (i) the S&P
500, Russell 2000 and Emerging Market indices, having initial margin
requirements of $245 million, (ii) the 2-year, 5-year and 10-year U.S.
Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial
margin requirements of $70 million and (iii) the Euro Stoxx, FTSE 100,
Topix, ASX 200 and European, Australasia, and Far East ("EAFE") indices as
well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S.
dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial
margin requirements of $25 million.
Collateral Arrangements
The Company generally has executed a Credit Support Annex ("CSA") under the
International Swaps and Derivatives Association Master Agreement ("ISDA
Master Agreement") it maintains with each of its over-the-counter ("OTC")
derivative counterparties that requires both posting and accepting
collateral either in the form of cash or high-quality securities, such as
U.S. Treasury securities, U.S. government and government agency securities
and investment grade corporate bonds. The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related CSA have been executed. At December 31, 2018
and 2017, respectively, the Company held $1,564 million and $1,855 million
in cash and securities collateral delivered by trade counterparties,
representing the fair value of the related derivative agreements. The
unrestricted cash collateral is reported in Other invested assets. The
Company posted collateral of $3 million and $3 million at December 31, 2018
and 2017, respectively, in the normal operation of its collateral
arrangements.
Securities Repurchase and Reverse Repurchase Transactions
Securities repurchase and reverse repurchase transactions are conducted by
the Company under a standardized securities industry master agreement,
amended to suit the requirements of each respective counterparty. The
Company's securities repurchase and reverse repurchase agreements are
accounted for as secured borrowing or lending arrangements, respectively and
are reported in the consolidated balance sheets on a gross basis. At
December 31, 2018 and 2017, the balance outstanding under securities
repurchase transactions was $573 million and $1,887 million, respectively.
The Company utilized these repurchase and reverse repurchase agreements for
asset liability and cash management purposes. For other instruments used for
asset liability management purposes, see "Obligations under Funding
Agreements" in Note 17 -- Commitments and Contingent Liabilities.
F-37
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2018:
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2018
GROSS
GROSS AMOUNT NET AMOUNT
AMOUNT OFFSET IN THE PRESENTED IN THE
RECOGNIZED BALANCE SHEETS BALANCE SHEETS
----------- -------------- ----------------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 2,946 $ 2,912 $ 34
Other financial instruments................ 1,520 -- 1,520
----------- ------------- ----------------
Other invested assets..................... $ 4,466 $ 2,912 $ 1,554
=========== ============= ================
LIABILITIES
Total Derivatives.......................... $ 3,109 $ 2,912 $ 197
Other financial liabilities................ 1,263 -- 1,263
----------- ------------- ----------------
Other liabilities......................... $ 4,372 $ 2,912 $ 1,460
=========== ============= ================
Securities sold under agreement to
repurchase/(1)/........................... $ 571 $ -- $ 571
=========== ============= ================
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2018.
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2018
NET AMOUNT COLLATERAL (RECEIVED)/HELD
PRESENTED IN ------------------------
THE BALANCE FINANCIAL NET
SHEETS INSTRUMENTS CASH/(3)/ AMOUNT
------------ ----------- ----------- ---------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 1,397 $ -- $ (1,363) $ 34
Other financial instruments................ 1,520 -- -- 1,520
------------ ----------- ----------- ---------
Other invested assets..................... $ 2,917 $ -- $ (1,363) $ 1,554
============ =========== =========== =========
LIABILITIES
Total Derivatives.......................... $ 197 $ -- $ -- $ 197
Other financial liabilities................ 1,263 -- -- 1,263
------------ ----------- ----------- ---------
Other liabilities......................... $ 1,460 $ -- $ -- $ 1,460
============ =========== =========== =========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 571 $ (588) $ -- $ (17)
============ =========== =========== =========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
/(2)/US Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is in Cash and cash equivalents on consolidated balance sheets.
F-38
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2018:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
DECEMBER 31, 2018
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
----------------------------------------------------------
OVERNIGHT AND UP TO 30 30-90 GREATER THAN
CONTINUOUS DAYS DAYS 90 DAYS TOTAL
-------------- --------- ------- ------------- -----------
(IN MILLIONS)
Securities sold under agreement
to repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 571 $ -- $ -- $ 571
-------------- --------- ------- ------------- -----------
Total........................................ $ -- $ 571 $ -- $ -- $ 571
============== ========= ======= ============= ===========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2017.
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2017
Gross
Gross Amount Net Amount
Amount Offset in the Presented in the
Recognized Balance Sheets Balance Sheets
------------ --------------- ----------------
(in millions)
Assets
Total Derivatives.......................... $ 3,740 $ 3,614 $ 126
Other financial instruments................ 1,704 -- 1,704
------------ --------------- ----------------
Other invested assets..................... $ 5,444 $ 3,614 $ 1,830
============ =============== ================
Liabilities
Total Derivatives.......................... $ 3,614 $ 3,614 $ --
Other financial liabilities................ 1,242 -- 1,242
------------ --------------- ----------------
Other liabilities......................... $ 4,856 $ 3,614 $ 1,242
============ =============== ================
Securities sold under agreement to
repurchase/(1)/........................... $ 1,882 $ -- $ 1,882
============ =============== ================
|
/(1)/Excludes expense of $5 million included in Securities sold under
agreements to repurchase on the consolidated balance sheets.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2017:
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2017
Net Amount Collateral (Received)/Held
Presented in ------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------ ----------- -----------
(in millions)
Assets
Total derivatives.......................... $ 1,954 $ -- $ (1,828) $ 126
Other financial instruments................ 1,704 -- -- 1,704
------------- ------------ ----------- -----------
Other invested assets..................... $ 3,658 $ -- $ (1,828) $ 1,830
============= ============ =========== ===========
|
F-39
Net Amount Collateral (Received)/Held
Presented in ---------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------- ------------ --------
(in millions)
Liabilities
Other financial liabilities................ $ 1,242 $ -- $ -- $ 1,242
------------- ------------- ------------ --------
Other liabilities......................... $ 1,242 $ -- $ -- $ 1,242
============= ============= ============ ========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 1,882 $ (1,988) $ (21) $ (127)
============= ============= ============ ========
|
/(1)/Excludes expense of $5 million in securities sold under agreement to
repurchase.
/(2)/U.S. Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is included in Cash and cash equivalents on consolidated balance
sheets.
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2017:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
AT DECEMBER 31, 2017
Remaining Contractual Maturity of the Agreements
----------------------------------------------------------
Overnight and Up to 30 30-90 Greater Than
Continuous days days 90 days Total
--------------- -------- --------- -------------- --------
(in millions)
Securities sold under agreement to
repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 1,882 $ -- $ -- $ 1,882
--------------- -------- --------- -------------- --------
Total........................................ $ -- $ 1,882 $ -- $ -- $ 1,882
=============== ======== ========= ============== ========
|
/(1)/Excludes expense of $5 million in securities sold under agreements to
repurchase on the consolidated balance sheets.
Net Investment Income (Loss)
The following table breaks out Net investment income (loss) by asset
category:
YEARS ENDED DECEMBER 31
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Fixed maturities....................................... $ 1,540 $ 1,365 $ 1,418
Mortgage loans on real estate.......................... 494 453 461
Real estate held for the production of income.......... (6) 2 --
Repurchase agreement................................... -- -- 1
Other equity investments............................... 123 169 55
Policy loans........................................... 201 205 210
Trading securities..................................... 128 258 64
Other investment income................................ 69 54 16
-------- -------- --------
Gross investment income (loss)....................... 2,549 2,506 2,225
Investment expenses/(1)/............................... (71) (65) (57)
-------- -------- --------
Net Investment Income (Loss)......................... $ 2,478 $ 2,441 $ 2,168
======== ======== ========
|
/(1)/Investment expenses includes expenses related to the management of the
two buildings sold in 2016.
F-40
Net unrealized and realized gains (losses) on trading account equity
securities are included in Net investment income (loss) in the consolidated
statements of income (loss). The table below shows a breakdown of Net
investment income from trading account securities during the years ended
December 31, 2018, 2017 and 2016:
NET INVESTMENT INCOME (LOSS) FROM TRADING SECURITIES
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------- ------ ------
(IN MILLIONS)
Net investment gains (losses) recognized during the
period on securities held at the end of the period.. $ (174) $ 63 $ (45)
Net investment gains (losses) recognized on
securities sold during the period................... (24) (19) (11)
------- ------ ------
Unrealized and realized gains (losses) on trading
securities.......................................... (198) 44 (56)
Interest and dividend income from trading securities.. 326 214 120
------- ------ ------
Net investment income (loss) from trading securities.. $ 128 $ 258 $ 64
======= ====== ======
|
Investment Gains (Losses), Net
Investment gains (losses), net including changes in the valuation allowances
and OTTI are as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
------- --------- --------
(IN MILLIONS)
Fixed maturities............................. $ 6 $ (130) $ (3)
Mortgage loans on real estate................ -- 2 (2)
Other equity investments..................... -- 3 --
Other........................................ (2) -- 23
------- --------- --------
Investment gains (losses), net............... $ 4 $ (125) $ 18
======= ========= ========
|
For the years ended December 31, 2018, 2017 and 2016, respectively,
investment results passed through to certain participating group annuity
contracts as Interest credited to policyholders' account balances totaled
$3 million, $3 million and $4 million.
4) INTANGIBLE ASSETS
Capitalized Software
Capitalized software, net of accumulated amortization, amounted to
$115 million and $96 million at December 31, 2018 and 2017, respectively,
and is recorded in Other assets. Amortization of capitalized software in
2018, 2017 and 2016 was $35 million, $37 million and $42 million,
respectively, recorded in other Operating costs and expenses in the
consolidated statements of income (loss). Amortization expense for
capitalized software is expected to be approximately $43 million in 2019,
$47 million in 2020, $47 million in 2021, $47 million in 2022 and
$47 million in 2023.
5) CLOSED BLOCK
As a result of demutualization, the Company's Closed Block was established
in 1992 for the benefit of certain individual participating policies that
were in force on that date. Assets, liabilities and earnings of the Closed
Block are specifically identified to support its participating policyholders.
Assets allocated to the Closed Block inure solely to the benefit of the
Closed Block policyholders and will not revert to the benefit of the
Company. No reallocation, transfer, borrowing or lending of assets can be
made between the Closed Block and other portions of the Company's General
Account, any of its Separate Accounts or any affiliate of the Company
without the approval of the New York State Department of Financial Services
(the "NYDFS"). Closed Block assets and liabilities are carried on the same
basis as similar assets and liabilities held in the General Account.
F-41
The excess of Closed Block liabilities over Closed Block assets (adjusted to
exclude the impact of related amounts in AOCI) represents the expected
maximum future post-tax earnings from the Closed Block that would be
recognized in income from continuing operations over the period the policies
and contracts in the Closed Block remain in force. As of January 1, 2001,
the Company has developed an actuarial calculation of the expected timing of
the Closed Block's earnings.
If the actual cumulative earnings from the Closed Block are greater than the
expected cumulative earnings, only the expected earnings will be recognized
in net income. Actual cumulative earnings in excess of expected cumulative
earnings at any point in time are recorded as a policyholder dividend
obligation because they will ultimately be paid to Closed Block
policyholders as an additional policyholder dividend unless offset by future
performance that is less favorable than originally expected. If a
policyholder dividend obligation has been previously established and the
actual Closed Block earnings in a subsequent period are less than the
expected earnings for that period, the policyholder dividend obligation
would be reduced (but not below zero). If, over the period the policies and
contracts in the Closed Block remain in force, the actual cumulative
earnings of the Closed Block are less than the expected cumulative earnings,
only actual earnings would be recognized in income from continuing
operations. If the Closed Block has insufficient funds to make guaranteed
policy benefit payments, such payments will be made from assets outside the
Closed Block.
Many expenses related to Closed Block operations, including amortization of
DAC, are charged to operations outside of the Closed Block; accordingly, net
revenues of the Closed Block do not represent the actual profitability of
the Closed Block operations. Operating costs and expenses outside of the
Closed Block are, therefore, disproportionate to the business outside of the
Closed Block.
Summarized financial information for the Company's Closed Block is as
follows:
AS OF DECEMBER 31,
---------------------
2018 2017
---------- ----------
(IN MILLIONS)
CLOSED BLOCK LIABILITIES:
Future policy benefits, policyholders' account
balances and other................................... $ 6,709 $ 6,958
Policyholder' dividend obligation...................... -- 19
Other liabilities...................................... 47 271
---------- ----------
Total Closed Block liabilities......................... 6,756 7,248
---------- ----------
ASSETS DESIGNATED TO THE CLOSED BLOCK:
Fixed maturities, available for sale, at fair value
(amortized cost of $ 3,680 and $3,923)............... 3,672 4,070
Mortgage loans on real estate, net of valuation
allowance of $-- and $--............................. 1,824 1,720
Policy loans........................................... 736 781
Cash and other invested assets......................... 76 351
Other assets........................................... 179 182
---------- ----------
Total assets designated to the Closed Block............ 6,487 7,104
---------- ----------
Excess of Closed Block liabilities over assets
designated to the Closed Block....................... 269 144
Amounts included in Accumulated other comprehensive
income (loss):
Net unrealized investment gains (losses), net of
policyholders' dividend obligation of $-- and $19... 8 138
---------- ----------
Maximum future income to be recognized from closed
block assets and liabilities........................ $ 277 $ 282
========== ==========
|
The Company's Closed Block revenues and expenses follow:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
REVENUES:
Premiums and other income.................... $ 194 $ 224 $ 212
Net investment income (loss)................. 291 314 349
Investment gains (losses), net............... (3) (20) (1)
-------- -------- --------
Total revenues............................. 482 518 560
-------- -------- --------
|
F-42
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits and dividends....... $ 471 $ 537 $ 522
Other operating costs and expenses.......... 3 2 4
---------- ---------- ----------
Total benefits and other deductions....... 474 539 526
---------- ---------- ----------
Net income, before income taxes............. 8 (21) 34
Income tax (expense) benefit.............. (3) (36) (12)
---------- ---------- ----------
Net income (losses)......................... $ 5 $ (57) $ 22
========== ========== ==========
|
A reconciliation of the Company's policyholders' dividend obligation follows:
DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
Balance, beginning of year.................................. $ 19 $ 52
Unrealized investment gains (losses)........................ (19) (33)
-------- --------
Balance, end of year........................................ $ -- $ 19
======== ========
|
6) DAC AND POLICYHOLDER BONUS INTEREST CREDITS
Changes in the deferred policy acquisition cost asset for the years ended
December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
-------------------------
2018 2017 2016
------- ------- -------
(IN MILLIONS)
Balance, beginning of year................... $ 4,492 $ 5,025 $ 5,079
Capitalization of commissions, sales and
issue expenses............................. 597 578 594
Amortization:
Impact of assumptions updates and
model changes............................. 165 (247) (193)
All other.................................... (596) (653) (449)
------- ------- -------
Total amortization......................... (431) (900) (642)
------- ------- -------
Change in unrealized investment gains
and losses................................. 353 (211) (6)
------- ------- -------
Balance, end of year......................... $ 5,011 $ 4,492 $ 5,025
======= ======= =======
|
Changes in the deferred asset for policyholder bonus interest credits for
the years ended December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Balance, beginning of year................... $ 473 $ 504 $ 534
Policyholder bonus interest credits deferred. 4 6 13
Amortization charged to income............... (51) (37) (43)
-------- -------- --------
Balance, end of year......................... $ 426 $ 473 $ 504
======== ======== ========
|
F-43
7) FAIR VALUE DISCLOSURES
The accounting guidance establishes a fair value hierarchy that requires an
entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value, and identifies three levels
of inputs that may be used to measure fair value:
Level 1 Unadjusted quoted prices for identical instruments in
active markets. Level 1 fair values generally are supported
by market transactions that occur with sufficient frequency
and volume to provide pricing information on an ongoing
basis.
Level 2 Observable inputs other than Level 1 prices, such as quoted
prices for similar instruments, quoted prices in markets
that are not active, and inputs to model-derived valuations
that are directly observable or can be corroborated by
observable market data.
Level 3 Unobservable inputs supported by little or no market
activity and often requiring significant management
judgment or estimation, such as an entity's own assumptions
about the cash flows or other significant components of
value that market participants would use in pricing the
asset or liability.
|
The Company uses unadjusted quoted market prices to measure fair value for
those instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are measured using
present value or other valuation techniques. The fair value determinations
are made at a specific point in time, based on available market information
and judgments about the financial instrument, including estimates of the
timing and amount of expected future cash flows and the credit standing of
counterparties. Such adjustments do not reflect any premium or discount that
could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument, nor do they consider the tax
impact of the realization of unrealized gains or losses. In many cases, the
fair value cannot be substantiated by direct comparison to independent
markets, nor can the disclosed value be realized in immediate settlement of
the instrument.
Management is responsible for the determination of the value of investments
carried at fair value and the supporting methodologies and assumptions.
Under the terms of various service agreements, the Company often utilizes
independent valuation service providers to gather, analyze, and interpret
market information and derive fair values based upon relevant methodologies
and assumptions for individual securities. These independent valuation
service providers typically obtain data about market transactions and other
key valuation model inputs from multiple sources and, through the use of
widely accepted valuation models, provide a single fair value measurement
for individual securities for which a fair value has been requested. As
further described below with respect to specific asset classes, these inputs
include, but are not limited to, market prices for recent trades and
transactions in comparable securities, benchmark yields, interest rate yield
curves, credit spreads, quoted prices for similar securities, and other
market-observable information, as applicable. Specific attributes of the
security being valued also are considered, including its term, interest
rate, credit rating, industry sector, and when applicable, collateral
quality and other security- or issuer-specific information. When
insufficient market observable information is available upon which to
measure fair value, the Company either will request brokers knowledgeable
about these securities to provide a non-binding quote or will employ
internal valuation models. Fair values received from independent valuation
service providers and brokers and those internally modeled or otherwise
estimated are assessed for reasonableness.
Assets and liabilities measured at fair value on a recurring basis are
summarized below. At December 31, 2018 and December 31, 2017, no assets were
required to be measured at fair value on a non-recurring basis. Fair value
measurements are required on a non-recurring basis for certain assets,
including goodwill and mortgage loans on real estate, only when an OTTI or
other event occurs. When such fair value measurements are recorded, they
must be classified and disclosed within the fair value hierarchy. The
Company recognizes transfers between valuation levels at the beginning of
the reporting period.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2018
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------- -------- ------- --------
(IN MILLIONS)
ASSETS
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 25,202 $ 1,174 $ 26,376
U.S. Treasury, government and agency........ -- 13,335 -- 13,335
States and political subdivisions........... -- 416 38 454
Foreign governments......................... -- 519 -- 519
Residential mortgage-backed/(2)/............ -- 202 -- 202
Asset-backed/(3)/........................... -- 71 519 590
Redeemable preferred stock.................. 163 276 -- 439
------- -------- ------- --------
Total fixed maturities,
available-for-sale...................... 163 40,021 1,731 41,915
|
F-44
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------- --------- -------- ---------
(IN MILLIONS)
Other equity investments................... $ 12 $ -- $ -- $ 12
Trading securities......................... 218 14,919 29 15,166
Other invested assets:
Short-term investments.................... -- 412 -- 412
Assets of consolidated VIEs/VOEs.......... -- -- 19 19
Swaps..................................... -- 423 -- 423
Credit default swaps...................... -- 17 -- 17
Options................................... -- 956 -- 956
--------- --------- -------- ---------
Total other invested assets............. -- 1,808 19 1,827
Cash equivalents............................. 2,160 -- -- 2,160
GMIB reinsurance contracts asset............. -- -- 1,991 1,991
Separate Accounts assets..................... 105,159 2,733 374 108,266
--------- --------- -------- ---------
Total Assets.............................. $ 107,712 $ 59,481 $ 4,144 $ 171,337
========= ========= ======== =========
LIABILITIES
GMxB derivative features' liability.......... $ -- $ -- $ 5,431 $ 5,431
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 687 -- 687
--------- --------- -------- ---------
Total Liabilities......................... $ -- $ 687 $ 5,431 $ 6,118
========= ========= ======== =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2017
Level 1 Level 2 Level 3 Total
---------- --------- --------- ----------
(in millions)
Assets
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 20,343 $ 1,139 $ 21,482
U.S. Treasury, government and agency........ -- 13,135 -- 13,135
States and political subdivisions........... -- 441 40 481
Foreign governments......................... -- 409 -- 409
Residential mortgage-backed/(2)/............ -- 251 -- 251
Asset-backed/(3)/........................... -- 88 8 96
Redeemable preferred stock.................. 180 324 -- 504
---------- --------- --------- ----------
Total fixed maturities,
available-for-sale...................... 180 34,991 1,187 36,358
Other equity investments..................... 13 -- -- 13
Trading securities........................... 180 12,097 -- 12,277
Other invested assets........................
Short-term investments...................... -- 763 -- 763
Assets of consolidated VIEs/VOEs............ -- -- 25 25
Swaps....................................... -- 15 -- 15
Credit default swaps........................ -- 33 -- 33
Options..................................... -- 1,907 -- 1,907
---------- --------- --------- ----------
Total other invested assets............... -- 2,718 25 2,743
Cash equivalents............................... 1,908 -- -- 1,908
Segregated securities.......................... -- 9 -- 9
GMIB reinsurance contracts asset............... -- -- 10,488 10,488
Separate Accounts assets....................... 118,983 2,983 349 122,315
---------- --------- --------- ----------
Total Assets................................ $ 121,264 $ 52,798 $ 12,049 $ 186,111
========== ========= ========= ==========
|
F-45
Level 1 Level 2 Level 3 Total
-------- ------- --------- ---------
(in millions)
Liabilities
GMxB derivative features' liability.......... $ -- $ -- $ 4,256 $ 4,256
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 1,698 -- 1,698
-------- ------- --------- ---------
Total Liabilities......................... $ -- $ 1,698 $ 4,256 $ 5,954
======== ======= ========= =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
The fair values of the Company's public fixed maturities are generally based
on prices obtained from independent valuation service providers and for
which the Company maintains a vendor hierarchy by asset type based on
historical pricing experience and vendor expertise. Although each security
generally is priced by multiple independent valuation service providers, the
Company ultimately uses the price received from the independent valuation
service provider highest in the vendor hierarchy based on the respective
asset type, with limited exception. To validate reasonableness, prices also
are internally reviewed by those with relevant expertise through comparison
with directly observed recent market trades. Consistent with the fair value
hierarchy, public fixed maturities validated in this manner generally are
reflected within Level 2, as they are primarily based on observable pricing
for similar assets and/or other market observable inputs. If the pricing
information received from independent valuation service providers is not
reflective of market activity or other inputs observable in the market, the
Company may challenge the price through a formal process in accordance with
the terms of the respective independent valuation service provider
agreement. If as a result it is determined that the independent valuation
service provider is able to reprice the security in a manner agreed as more
consistent with current market observations, the security remains within
Level 2. Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
The fair values of the Company's private fixed maturities are determined
from prices obtained from independent valuation service providers. Prices
not obtained from an independent valuation service provider are determined
by using a discounted cash flow model or a market comparable company
valuation technique. In certain cases, these models use observable inputs
with a discount rate based upon the average of spread surveys collected from
private market intermediaries who are active in both primary and secondary
transactions, taking into account, among other factors, the credit quality
and industry sector of the issuer and the reduced liquidity associated with
private placements. Generally, these securities have been reflected within
Level 2. For certain private fixed maturities, the discounted cash flow
model or a market comparable company valuation technique may also
incorporate unobservable inputs, which reflect the Company's own assumptions
about the inputs market participants would use in pricing the asset. To the
extent management determines that such unobservable inputs are significant
to the fair value measurement of a security, a Level 3 classification
generally is made.
The net fair value of the Company's freestanding derivative positions as
disclosed in Note 3 are generally based on prices obtained either from
independent valuation service providers or derived by applying market inputs
from recognized vendors into industry standard pricing models. The majority
of these derivative contracts are traded in the OTC derivative market and
are classified in Level 2. The fair values of derivative assets and
liabilities traded in the OTC market are determined using quantitative
models that require use of the contractual terms of the derivative
instruments and multiple market inputs, including interest rates, prices,
and indices to generate continuous yield or pricing curves, including
overnight index swap ("OIS") curves, and volatility factors, which then are
applied to value the positions. The predominance of market inputs is
actively quoted and can be validated through external sources or reliably
interpolated if less observable. If the pricing information received from
independent valuation service providers is not reflective of market activity
or other inputs observable in the market, the Company may challenge the
price through a formal process in accordance with the terms of the
respective independent valuation service provider agreement. If as a result
it is determined that the independent valuation service provider is able to
reprice the derivative instrument in a manner agreed as more consistent with
current market observations, the position remains within Level 2.
Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
Investments classified as Level 1 primarily include redeemable preferred
stock, trading securities, cash equivalents and Separate Account assets.
Fair value measurements classified as Level 1 include exchange-traded prices
of fixed maturities, equity securities and derivative contracts, and net
asset values for transacting subscriptions and redemptions of mutual fund
shares held by Separate Accounts. Cash equivalents classified as Level 1
include money market accounts, overnight commercial paper and highly liquid
debt instruments purchased with an original maturity of three months or less
and are carried at cost as a proxy for fair value measurement due to their
short-term nature.
F-46
Investments classified as Level 2 are measured at fair value on a recurring
basis and primarily include U.S. government and agency securities and
certain corporate debt securities, such as public and private fixed
maturities. As market quotes generally are not readily available or
accessible for these securities, their fair value measures are determined
utilizing relevant information generated by market transactions involving
comparable securities and often are based on model pricing techniques that
effectively discount prospective cash flows to present value using
appropriate sector-adjusted credit spreads commensurate with the security's
duration, also taking into consideration issuer-specific credit quality and
liquidity. Segregated securities classified as Level 2 are U.S. Treasury
bills segregated in a special reserve bank custody account for the exclusive
benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange
Act and for which fair values are based on quoted yields in secondary
markets.
Observable inputs generally used to measure the fair value of securities
classified as Level 2 include benchmark yields, reported secondary trades,
issuer spreads, benchmark securities and other reference data. Additional
observable inputs are used when available, and as may be appropriate, for
certain security types, such as prepayment, default, and collateral
information for the purpose of measuring the fair value of mortgage- and
asset-backed securities. The Company's AAA-rated mortgage- and asset-backed
securities are classified as Level 2 for which the observability of market
inputs to their pricing models is supported by sufficient, albeit more
recently contracted, market activity in these sectors.
Certain Company products such as the SCS and EQUI-VEST variable annuity
products, and in the MSO fund available in some life contracts offer
investment options which permit the contract owner to participate in the
performance of an index, ETF or commodity price. These investment options,
which depending on the product and on the index selected can currently
have 1, 3, 5, or 6-year terms, provide for participation in the performance
of specified indices, ETF or commodity price movement up to a
segment-specific declared maximum rate. Under certain conditions that vary
by product, e.g. holding these segments for the full term, these segments
also shield policyholders from some or all negative investment performance
associated with these indices, ETF or commodity prices. These investment
options have defined formulaic liability amounts, and the current values of
the option component of these segment reserves are accounted for as Level 2
embedded derivatives. The fair values of these embedded derivatives are
based on data obtained from independent valuation service providers.
The Company's investments classified as Level 3 primarily include corporate
debt securities, such as private fixed maturities. Determinations to
classify fair value measures within Level 3 of the valuation hierarchy
generally are based upon the significance of the unobservable factors to the
overall fair value measurement. Included in the Level 3 classification are
fixed maturities with indicative pricing obtained from brokers that
otherwise could not be corroborated to market observable data. The Company
applies various due diligence procedures, as considered appropriate, to
validate these non-binding broker quotes for reasonableness, based on its
understanding of the markets, including use of internally-developed
assumptions about inputs a market participant would use to price the
security. In addition, asset-backed securities are classified as Level 3.
The Company also issues certain benefits on its variable annuity products
that are accounted for as derivatives and are also considered Level 3. The
GMIBNLG feature allows the policyholder to receive guaranteed minimum
lifetime annuity payments based on predetermined annuity purchase rates
applied to the contract's benefit base if and when the contract account
value is depleted and the NLG feature is activated. The GMWB feature allows
the policyholder to withdraw at minimum, over the life of the contract, an
amount based on the contract's benefit base. The GWBL feature allows the
policyholder to withdraw, each year for the life of the contract, a
specified annual percentage of an amount based on the contract's benefit
base. The GMAB feature increases the contract account value at the end of a
specified period to a GMAB base. The GIB feature provides a lifetime annuity
based on predetermined annuity purchase rates if and when the contract
account value is depleted. This lifetime annuity is based on predetermined
annuity purchase rates applied to a GIB base.
Level 3 also includes the GMIB reinsurance contract assets which are
accounted for as derivative contracts. The GMIB reinsurance contract asset
and liabilities' fair value reflects the present value of reinsurance
premiums and recoveries and risk margins over a range of market consistent
economic scenarios while GMxB derivative features liability reflects the
present value of expected future payments (benefits) less fees, adjusted for
risk margins and nonperformance risk, attributable to GMxB derivative
features' liability over a range of market-consistent economic scenarios.
The valuations of the GMIB reinsurance contract asset and GMxB derivative
features liability incorporate significant non-observable assumptions
related to policyholder behavior, risk margins and projections of equity
separate account funds. The credit risks of the counterparty and of the
Company are considered in determining the fair values of its GMIB
reinsurance contract asset and GMxB derivative features liability positions,
respectively, after taking into account the effects of collateral
arrangements. Incremental adjustment to the swap curve for non-performance
risk is made to the fair values of the GMIB reinsurance contract asset and
liabilities and GMIBNLG feature to reflect the claims-paying ratings of
counterparties and the Company. Equity and fixed income volatilities were
modeled to reflect current market volatilities. Due to the unique, long
duration of the GMIBNLG feature, adjustments were made to the equity
volatilities to remove the illiquidity bias associated with the longer
tenors and risk margins were applied to the non-capital markets inputs to
the GMIBNLG valuations.
F-47
After giving consideration to collateral arrangements, the Company reduced
the fair value of its GMIB reinsurance contract asset by $184 million and
$69 million at December 31, 2018 and 2017, respectively, to recognize
incremental counterparty non-performance risk.
Lapse rates are adjusted at the contract level based on a comparison of the
actuarially calculated guaranteed values and the current policyholder
account value, which include other factors such as considering surrender
charges. Generally, lapse rates are assumed to be lower in periods when a
surrender charge applies. A dynamic lapse function reduces the base lapse
rate when the guaranteed amount is greater than the account value as in the
money contracts are less likely to lapse. For valuing the embedded
derivative, lapse rates vary throughout the period over which cash flows are
projected.
The Company's consolidated VIEs/VOEs hold investments that are classified as
Level 3 and primarily consist of corporate bonds that are vendor priced with
no ratings available, bank loans, non-agency collateralized mortgage
obligations and asset-backed securities.
In 2018, AFS fixed maturities with fair values of $28 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $83 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.9% of total equity at December 31, 2018.
In 2017, AFS fixed maturities with fair values of $6 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $7 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.1% of total equity at December 31, 2017.
The table below presents a reconciliation for all Level 3 assets and
liabilities at December 31, 2018, 2017 and 2016 respectively:
LEVEL 3 INSTRUMENTS
FAIR VALUE MEASUREMENTS
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED ASSET-BACKED
----------- -------------- ----------- ---------- ------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ 1,139 $ 40 $ -- $ -- $ 8
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 7 -- -- -- (2)
Investment gains (losses), net............ (8) -- -- -- --
----------- -------------- ----------- ---------- ------------
Subtotal..................................... (1) -- -- -- (2)
----------- -------------- ----------- ---------- ------------
Other comprehensive income (loss).............. (20) (1) -- -- (7)
Purchases...................................... 322 -- -- -- 550
Sales.......................................... (321) (1) -- -- (30)
Transfers into Level 3/(1)/.................... 83 -- -- -- --
Transfers out of Level 3/(1)/.................. (28) -- -- -- --
----------- -------------- ----------- ---------- ------------
BALANCE, DECEMBER 31, 2018..................... $ 1,174 $ 38 $ -- $ -- $ 519
=========== ============== =========== ========== ============
|
F-48
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE- ASSET-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED BACKED
--------- ------------- ------------ ------------ --------
(IN MILLIONS)
Balance, January 1, 2017....................... $ 845 $ 42 $ -- $ 349 $ 24
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 5 -- -- (2) --
Investment gains (losses), net............ 2 -- -- (63) 15
--------- ------------- ------------ ------------ --------
Subtotal..................................... 7 -- -- (65) 15
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 4 (1) -- 45 (9)
Purchases...................................... 612 -- -- -- --
Sales.......................................... (331) (1) -- (329) (21)
Transfers into Level 3/(1)/.................... 7 -- -- -- --
Transfers out of Level 3/(1)/.................. (5) -- -- -- (1)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2017..................... $ 1,139 $ 40 $ -- $ -- $ 8
========= ============= ============ ============ ========
Balance, January 1, 2016....................... $ 420 $ 45 $ 1 $ 503 $ 40
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Subtotal..................................... 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 7 (2) -- 14 1
Purchases...................................... 572 -- -- -- --
Sales.......................................... (142) (1) -- (87) (8)
Transfers into Level 3/(1)/.................... 25 -- -- -- --
Transfers out of Level 3/(1)/.................. (38) -- (1) (14) (9)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2016..................... $ 845 $ 42 $ -- $ 349 $ 24
========= ============= ============ ============ ========
|
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ------------ -------- ----------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 26 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (972) -- (296)
Non-performance risk/(4)/................. -- -- (96) -- (490)
----------- --------------- ------------ -------- ----------
Subtotal..................................... -- -- (1,068) 26 (786)
----------- --------------- ------------ -------- ----------
Purchases/(2)/................................. -- 29 96 5 (403)
Sales/(3)/..................................... -- -- (62) (1) 14
Settlements.................................... -- -- (7,463) (5) --
Activity related to consolidated VIEs/ VOEs.... -- (6) -- -- --
Transfers into Level 3/(1)/.................... -- 5 -- -- --
Transfers out of Level 3/(1)/.................. -- (5) -- -- --
----------- --------------- ------------ -------- ----------
BALANCE, DECEMBER 31, 2018..................... $ -- $ 48 $ 1,991 $ 374 $ (5,431)
=========== =============== ============ ======== ==========
|
F-49
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ----------- -------- ----------
Balance, January 1, 2017....................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 29 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (6) -- 1,443
Non-performance risk/(4)/................. -- -- 75 -- 149
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- 69 29 1,592
----------- -------------- ----------- -------- ----------
Other comprehensive............................
income(loss)................................... (1) -- -- -- --
Purchases/(2)/................................. -- -- 221 13 (381)
Sales/(3)/..................................... -- -- (115) (2) 6
Settlements.................................... -- -- -- (4) --
Activity related to consolidated VIEs/ VOEs.... -- (15) -- -- --
Transfers into level 3/(1)/.................... -- -- -- -- --
Transfers out of level 3/(1)/.................. -- -- -- -- --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2017..................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
=========== ============== =========== ======== ==========
Balance, January 1, 2016....................... $ -- $ 1 $ 10,582 $ 313 $ (5,266)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 19 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (242) -- (126)
Non-performance risk/(4)/................. -- -- (20) -- 263
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- (262) 19 137
----------- -------------- ----------- -------- ----------
Other comprehensive income (loss).............. -- (1) -- -- --
Purchases/(2)/................................. 1 -- 223 10 (348)
Sales/(3)/..................................... -- -- (230) -- 4
Settlements.................................... -- -- -- (7) --
Activities related to consolidated VIEs/ VOEs.. -- 40 -- -- --
Transfers into level 3/(1)/.................... -- -- -- 1 --
Transfers out of level 3/(1)/.................. -- -- (23) --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2016..................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
=========== ============== =========== ======== ==========
|
/(1)/Transfers into/out of Level 3 classification are reflected at
beginning-of-period fair values.
/(2)/For the GMIB reinsurance contract asset, and GMxB derivative features
liability, represents attributed fee.
/(3)/For the GMIB reinsurance contract asset, represents recoveries from
reinsurers and for GMxB derivative features liability represents
benefits paid.
/(4)/The Company's non-performance risk is recorded through Net derivative
gains (losses).
F-50
The table below details changes in unrealized gains (losses) for 2018, 2017
and 2016 by category for Level 3 assets and liabilities still held at
December 31, 2018, 2017 and 2016 respectively.
EARNINGS (LOSS)
---------------------------------
NET
INVESTMENT DERIVATIVE
GAINS GAINS
(LOSSES), NET (LOSSES) OCI
------------- ----------- ------
(IN MILLIONS)
HELD AS OF DECEMBER 31, 2018:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ (18)
State and political subdivisions.......... -- -- (1)
Asset-backed.............................. -- -- (7)
------------- ----------- ------
Subtotal................................ -- -- (26)
------------- ----------- ------
GMIB reinsurance contracts.................. -- (1,068) --
Separate Accounts assets/(1)/............... 26 -- --
GMxB derivative features liability.......... -- (786) --
------------- ----------- ------
Total................................... $ 26 $ (1,854) $ (26)
============= =========== ======
Held as of December 31, 2017:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 4
Commercial mortgage-backed................ -- -- 45
Asset-backed.............................. -- -- (9)
Subtotal................................ -- -- 40
------------- ----------- ------
GMIB reinsurance contracts.................. -- 69 --
------------- ----------- ------
Separate Accounts assets/(1)/............... 29 -- --
GMxB derivative features liability.......... -- 1,592 --
------------- ----------- ------
Total................................... $ 29 $ 1,661 $ 40
============= =========== ======
Held as of December 31, 2016:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 11
State and political subdivisions.......... -- -- (1)
Commercial mortgage-backed................ -- -- 9
Asset-backed.............................. -- -- 1
------------- ----------- ------
Subtotal................................ -- -- 20
------------- ----------- ------
GMIB reinsurance contracts.................. -- (262) --
Separate Accounts assets/(1)/............... 20 -- --
GMxB derivative features liability.......... -- 137 --
------------- ----------- ------
Total................................... $ 20 $ (125) $ 20
============= =========== ======
|
/(1)/There is an investment expense that offsets this investment gain (loss).
F-51
The following tables disclose quantitative information about Level 3 fair
value measurements by category for assets and liabilities as of December 31,
2018 and 2017, respectively.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2018
FAIR VALUATION SIGNIFICANT WEIGHTED
VALUE TECHNIQUE UNOBSERVABLE INPUT RANGE AVERAGE
------ ---------------------------- ------------------------ ------------- --------
(IN MILLIONS)
ASSETS:
Investments:
Fixed maturities,
available-for- sale:
Corporate................... $ 93 Matrix pricing model Spread over Benchmark 15 - 580 BPS 104 BPS
881 Market comparable companies EBITDA 4.1X - 37.8X 12.1X
multiples Discount 6.4% - 16.5% 10.7%
rate Cash flow multiples 1.8X - 18.0X 11.4X
--------------------------------------------------------------------------------------------------------------------
Separate Accounts assets....... 352 Third party appraisal Capitalization rate Exit 4.4%
capitalization 5.6%
rate Discount rate 6.5%
1 Discounted cash flow Spread over U.S.
Treasury curve Discount 248 BPS
factor 5.1%
--------------------------------------------------------------------------------------------------------------------
GMIB reinsurance Lapse rates Withdrawal
contract asset............... 1,991 Discounted cash flow rates Utilization 1.0% - 6.27%
rates Non-performance 0.0% - 8.0%
risk 0.0% - 16.0%
Volatility rates - 74 - 159 BPS
Equity Mortality 10.0% - 34.0%
rates/(1)/: Ages 0 - 0.01% - 0.18%
40 Ages 41 - 60 Ages 60 0.07% - 0.54%
- 115 0.42% - 42.0%
--------------------------------------------------------------------------------------------------------------------
LIABILITIES:
GMIBNLG........................ 5,341 Discounted cash flow Non-performance 189 BPS
risk Lapse 0.8% - 26.2%
rates Withdrawal rates 0.0% - 12.1%
Annuitization Mortality 0.0% - 100.0%
rates/(1)/: Ages 0 - 0.01% - 0.19%
40 Ages 41 - 60 Ages 60 0.06% - 0.53%
- 115 0.41% - 41.2%
--------------------------------------------------------------------------------------------------------------------
GWBL/GMWB...................... 130 Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 7.0%
rates Volatility rates - 100% AFTER
Equity DELAY
10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GIB............................ (48) Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 8.0%
rates Volatility rates - 0.0% - 16.0%
Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GMAB........................... 7 Discounted cash flow Lapse rates Volatility 1.0% - 5.7%
rates - Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-52
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2017
Fair Valuation Significant Weighted
Value Technique Unobservable Input Range Average
------- ---------------------- --------------------------------- ------------- --------
(in millions)
Assets:
Investments:
Fixed maturities,
available-for-sale:
Corporate.................. $ 53 Matrix pricing model
Spread over the industry-specific
benchmark yield curve 0 - 565 bps 125 bps
789 Market comparable EBITDA multiples 5.3x - 27.9x 12.9x
companies Discount rate 7.2% - 17.0% 11.1%
Cash flow multiples 9.0x - 17.7x 13.1x
----------------------------------------------------------------------------------------------------------------------
Separate Accounts assets...... 326 Third party appraisal Capitalization rate 4.6%
Exit capitalization rate 5.6%
Discount rate 6.6%
1 Discounted cash flow
Spread over U.S. Treasury curve 243 bps
Discount factor 4.4%
----------------------------------------------------------------------------------------------------------------------
GMIB reinsurance 10,488 Discounted cash flow Lapse rates 1.0% - 6.3%
contract asset.............. Withdrawal rates 0.0% - 8.0%
GMIB Utilization rates 0.0% - 16.0%
Non-performance risk 5bps - 10bps
Volatility rates - Equity 9.9% - 30.9%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.18%
Ages 41 - 60 0.07% - 0.54%
Ages 60 - 115 0.42% - 42.0%
----------------------------------------------------------------------------------------------------------------------
Liabilities:
GMIBNLG....................... 4,149 Discounted cash flow Non-performance risk 1.0%
Lapse rates 0.8% - 26.2%
Withdrawal rates 0.0% - 12.4%
Utilization rates 0.0% - 16.0%
NLG Forfeiture rates 0.6% - 2.1%
Long-term equity volatility 20.0%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.19%
Ages 41 - 60 0.06% - 0.53%
Ages 60 - 115 0.41% - 41.2%
----------------------------------------------------------------------------------------------------------------------
GWBL/GMWB..................... 130 Discounted cash flow Lapse rates 0.9% - 5.7%
Withdrawal rates 0.0% - 7.0%
Utilization rates 0.0% - 16.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GIB........................... (27) Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GMAB.......................... 5 Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-53
Excluded from the tables above at December 31, 2018 and 2017, respectively,
are approximately $826 million and $392 million of Level 3 fair value
measurements of investments for which the underlying quantitative inputs are
not developed by the Company and are not readily available. These
investments primarily consist of certain privately placed debt securities
with limited trading activity, including residential mortgage- and
asset-backed instruments, and their fair values generally reflect unadjusted
prices obtained from independent valuation service providers and indicative,
non-binding quotes obtained from third-party broker-dealers recognized as
market participants. Significant increases or decreases in the fair value
amounts received from these pricing sources may result in the Company's
reporting significantly higher or lower fair value measurements for these
Level 3 investments.
The fair value of private placement securities is determined by application
of a matrix pricing model or a market comparable company value technique.
The significant unobservable input to the matrix pricing model valuation
technique is the spread over the industry-specific benchmark yield curve.
Generally, an increase or decrease in spreads would lead to directionally
inverse movement in the fair value measurements of these securities. The
significant unobservable input to the market comparable company valuation
technique is the discount rate. Generally, a significant increase (decrease)
in the discount rate would result in significantly lower (higher) fair value
measurements of these securities.
Residential mortgage-backed securities classified as Level 3 primarily
consist of non-agency paper with low trading activity. Included in the
tables above at December 31, 2018 and 2017, there were no Level 3 securities
that were determined by application of a matrix-pricing model and for which
the spread over the U.S. Treasury curve is the most significant unobservable
input to the pricing result. Generally, a change in spreads would lead to
directionally inverse movement in the fair value measurements of these
securities.
Asset-backed securities classified as Level 3 primarily consist of
non-agency mortgage loan trust certificates, including subprime and Alt-A
paper, credit tenant loans, and equipment financings. Included in the tables
above at December 31, 2018 and 2017, there were no securities that were
determined by the application of matrix-pricing for which the spread over
the U.S. Treasury curve is the most significant unobservable input to the
pricing result. Significant increases (decreases) in spreads would result in
significantly lower (higher) fair value measurements.
Included in other equity investments classified as Level 3 are reporting
entities' venture capital securities in the Technology, Media and
Telecommunications industries. The fair value measurements of these
securities include significant unobservable inputs including an enterprise
value to revenue multiples and a discount rate to account for liquidity and
various risk factors. Significant increases (decreases) in the enterprise
value to revenue multiple inputs in isolation would result in a
significantly higher (lower) fair value measurement. Significant increases
(decreases) in the discount rate would result in a significantly lower
(higher) fair value measurement.
Separate Accounts assets classified as Level 3 in the table at December 31,
2018 and 2017, primarily consist of a private real estate fund and mortgage
loans. A third-party appraisal valuation technique is used to measure the
fair value of the private real estate investment fund, including
consideration of observable replacement cost and sales comparisons for the
underlying commercial properties, as well as the results from applying a
discounted cash flow approach. Significant increase (decrease) in isolation
in the capitalization rate and exit capitalization rate assumptions used in
the discounted cash flow approach to the appraisal value would result in a
higher (lower) measure of fair value. With respect to the fair value
measurement of mortgage loans a discounted cash flow approach is applied, a
significant increase (decrease) in the assumed spread over U.S. Treasury
securities would produce a lower (higher) fair value measurement. Changes in
the discount rate or factor used in the valuation techniques to determine
the fair values of these private equity investments and mortgage loans
generally are not correlated to changes in the other significant
unobservable inputs. Significant increase (decrease) in isolation in the
discount rate or factor would result in significantly lower (higher) fair
value measurements. These fair value measurements are determined using
substantially the same valuation techniques as earlier described above for
the Company's General Account investments in these securities.
Significant unobservable inputs with respect to the fair value measurement
of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities
identified in the table above are developed using the Company data.
Validations of unobservable inputs are performed to the extent the Company
has experience. When an input is changed the model is updated and the
results of each step of the model are analyzed for reasonableness.
The significant unobservable inputs used in the fair value measurement of
the Company's GMIB reinsurance contract asset are lapse rates, withdrawal
rates and GMIB utilization rates. Significant increases in GMIB utilization
rates or decreases in lapse or withdrawal rates in isolation would tend to
increase the GMIB reinsurance contract asset.
Fair value measurement of the GMIB reinsurance contract asset and
liabilities includes dynamic lapse and GMIB utilization assumptions whereby
projected contractual lapses and GMIB utilization reflect the projected net
amount of risks of the contract. As the net amount of risk of a contract
increases, the assumed lapse rate decreases and the GMIB utilization
increases. Increases in volatility would increase the asset and liabilities.
F-54
The significant unobservable inputs used in the fair value measurement of
the Company's GMIBNLG liability are lapse rates, withdrawal rates, GMIB
utilization rates, adjustment for Non-performance risk and NLG forfeiture
rates. NLG forfeiture rates are caused by excess withdrawals above the
annual GMIB accrual rate that cause the NLG to expire. Significant decreases
in lapse rates, NLG forfeiture rates, adjustment for non-performance risk
and GMIB utilization rates would tend to increase the GMIBNLG liability,
while decreases in withdrawal rates and volatility rates would tend to
decrease the GMIBNLG liability.
The significant unobservable inputs used in the fair value measurement of
the Company's GMWB and GWBL liability are lapse rates and withdrawal rates.
Significant increases in withdrawal rates or decreases in lapse rates in
isolation would tend to increase these liabilities. Increases in volatility
would increase these liabilities.
Certain financial instruments are exempt from the requirements for fair
value disclosure, such as insurance liabilities other than financial
guarantees and investment contracts, limited partnerships accounted for
under the equity method and pension and other postretirement obligations.
The carrying values and fair values at December 31, 2018 and 2017 for
financial instruments not otherwise disclosed in Note 3 are presented in the
table below.
FAIR VALUE
CARRYING -----------------------------------
VALUE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------- -------- -------- -------- --------
(IN MILLIONS)
DECEMBER 31, 2018:
Mortgage loans on real estate................ $ 11,818 $ -- $ -- $ 11,478 $ 11,478
Loans to affiliates.......................... 600 -- 603 -- 603
Policyholders' liabilities:
Investment contracts....................... 1,974 -- -- 2,015 2,015
FHLBNY funding agreements.................... 4,002 -- 3,956 -- 3,956
Policy loans................................. 3,267 -- -- 3,944 3,944
Short-term and long-term debt................ -- -- -- -- --
Loans from affiliates........................ 572 -- 572 -- 572
Separate Accounts liabilities................ 7,406 -- -- 7,406 7,406
December 31, 2017:
Mortgage loans on real estate................ $ 10,935 $ -- $ -- $ 10,895 $ 10,895
Loans to affiliates.......................... 703 -- 700 -- 700
Policyholders' liabilities:
Investment contracts....................... 2,068 -- -- 2,170 2,170
FHLBNY funding agreements.................... 3,014 -- 3,020 -- 3,020
Policy loans................................. 3,315 -- -- 4,210 4,210
Short-term and long-term debt................ 203 -- 202 -- 202
Separate Accounts liabilities................ 7,537 -- -- 7,537 7,537
|
As our COLI policies are recorded at their cash surrender value, they are
not required to be included in the table above. For further details of our
accounting policies pertaining to COLI, see Note 2.
Fair values for commercial and agricultural mortgage loans on real estate
are measured by discounting future contractual cash flows to be received on
the mortgage loan using interest rates at which loans with similar
characteristics and credit quality would be made. The discount rate is
derived based on the appropriate U.S. Treasury rate with a like term to the
remaining term of the loan to which a spread reflective of the risk premium
associated with the specific loan is added. Fair values for mortgage loans
anticipated to be foreclosed and problem mortgage loans are limited to the
fair value of the underlying collateral, if lower.
Fair values for the Company's long-term debt related to real estate joint
ventures are determined by a third-party appraisal and assessed for
reasonableness. The Company's short-term debt primarily includes commercial
paper with short-term maturities and carrying value approximates fair value.
The fair values for the Company's other long-term debt are determined by
Bloomberg's evaluated pricing service, which uses direct observations or
observed comparables. The fair values of the Company's borrowing and lending
arrangements with AXA affiliated entities are determined in the same manner
as for such transactions with third parties, including matrix pricing models
for debt securities and discounted cash flow analysis for mortgage loans.
The fair value of policy loans is calculated by discounting expected cash
flows based upon the U.S. treasury yield curve and historical loan repayment
patterns.
F-55
The fair values of the Company's funding agreements are determined by
discounted cash flow analysis based on the indicative funding agreement
rates published by the FHLB.
The fair values for the Company's association plans contracts, supplementary
contracts not involving life contingencies ("SCNILC"), deferred annuities
and certain annuities, which are included in Policyholders' account balances
and liabilities for investment contracts with fund investments in Separate
Accounts are estimated using projected cash flows discounted at rates
reflecting current market rates. Significant unobservable inputs reflected
in the cash flows include lapse rates and withdrawal rates. Incremental
adjustments may be made to the fair value to reflect non-performance risk.
Certain other products such as Access Accounts and Escrow Shield Plus
product reserves are held at book value.
8) INSURANCE LIABILITIES
Variable Annuity Contracts -- GMDB, GMIB, GIB and GWBL and Other Features
The Company has certain variable annuity contracts with GMDB, GMIB, GIB and
GWBL and other features in-force that guarantee one of the following:
. Return of Premium: the benefit is the greater of current account
value or premiums paid (adjusted for withdrawals);
. Ratchet: the benefit is the greatest of current account value,
premiums paid (adjusted for withdrawals), or the highest account
value on any anniversary up to contractually specified ages (adjusted
for withdrawals);
. Roll-Up: the benefit is the greater of current account value or
premiums paid (adjusted for withdrawals) accumulated at contractually
specified interest rates up to specified ages;
. Combo: the benefit is the greater of the ratchet benefit or the
roll-up benefit, which may include either a five year or an annual
reset; or
. Withdrawal: the withdrawal is guaranteed up to a maximum amount per
year for life.
LIABILITIES FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES AND
NO NLG FEATURE
The change in the liabilities for variable annuity contracts with GMDB and
GMIB features and no NLG feature are summarized in the tables below. The
amounts for the direct contracts (before reinsurance ceded) and assumed
contracts are reflected in the consolidated balance sheets in Future policy
benefits and other policyholders' liabilities. The amounts for the ceded
contracts are reflected in the consolidated balance sheets in Amounts due
from reinsurers.
CHANGE IN LIABILITY FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AND
NO NLG FEATURE
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
GMDB GMIB
---------------- ----------------
DIRECT CEDED DIRECT CEDED
------- ------- ------ --------
(IN MILLIONS)
Balance at January 1, 2016................... $ 2,991 $(1,430) $3,886 $(10,575)
Paid guarantee benefits.................... (357) 174 (281) 230
Other changes in reserve................... 525 (302) 203 31
------- ------- ------ --------
Balance at December 31, 2016................. 3,159 (1,558) 3,808 (10,314)
Paid guarantee benefits.................... (354) 171 (151) 115
Other changes in reserve................... 1,249 (643) 1,097 (289)
------- ------- ------ --------
Balance at December 31, 2017................. 4,054 (2,030) 4,754 (10,488)
Paid guarantee benefits.................... (394) 70 (153) 61
Other changes in reserve................... 994 1,853 (860) 8,435
------- ------- ------ --------
Balance at December 31, 2018................. $ 4,654 $ (107) $3,741 $ (1,992)
======= ======= ====== ========
|
F-56
LIABILITIES FOR EMBEDDED AND FREESTANDING INSURANCE RELATED DERIVATIVES
The liability for the GMxB derivative features liability, the liability for
SCS, SIO, MSO and IUL indexed features and the asset and liability for the
GMIB reinsurance contracts are considered embedded or freestanding insurance
derivatives and are reported at fair value. For the fair value of the assets
and liabilities associated with these embedded or freestanding insurance
derivatives, see Note 7.
ACCOUNT VALUES AND NET AMOUNT AT RISK
Account Values and Net Amount at Risk ("NAR") for direct variable annuity
contracts in force with GMDB and GMIB features as of December 31, 2018 are
presented in the following tables by guarantee type. For contracts with the
GMDB feature, the NAR in the event of death is the amount by which the GMDB
feature exceeds the related Account Values. For contracts with the GMIB
feature, the NAR in the event of annuitization is the amount by which the
present value of the GMIB benefits exceed the related Account Values, taking
into account the relationship between current annuity purchase rates and the
GMIB guaranteed annuity purchase rates. Since variable annuity contracts
with GMDB features may also offer GMIB guarantees in the same contract, the
GMDB and GMIB amounts listed are not mutually exclusive.
DIRECT VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AS OF DECEMBER 31, 2018
GUARANTEE TYPE
---------------------------------------------------------
RETURN OF
PREMIUM RATCHET ROLL-UP COMBO TOTAL
---------- ----------- ---------- --------- ---------
(IN MILLIONS; EXCEPT AGE AND INTEREST RATE)
Variable annuity contracts with GMDB features
---------------------------------------------
Account Values invested in:
General Account............................ $ 14,035 $ 102 $ 61 $ 184 $ 14,382
Separate Accounts.......................... 41,463 8,382 2,903 30,406 83,154
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ 55,498 $ 8,484 $ 2,964 $ 30,590 $ 97,536
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ 418 $ 791 $ 2,291 $ 20,587 $ 24,087
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ 418 $ 772 $ 1,615 $ 20,587 $ 23,392
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. 51.4 67.0 73.6 69.0 55.3
Percentage of policyholders over age 70..... 10.0% 43.0% 65.5% 49.9% 18.8%
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
Variable annuity contracts with GMIB features
---------------------------------------------
Account Values invested in:
General Account............................ $ -- $ -- $ 19 $ 251 $ 270
Separate Accounts.......................... -- -- 19,407 33,428 52,835
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ -- $ -- $ 19,426 $ 33,679 $ 53,105
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ -- $ -- $ 994 $ 9,156 $ 10,150
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ -- $ -- $ 309 $ 8,268 $ 8,577
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. N/A N/A 68.9 68.8 68.8
Weighted average years remaining
until annuitization........................ N/A N/A 1.7 0.5 0.6
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
|
For more information about the reinsurance programs of the Company's GMDB
and GMIB exposure, see "Reinsurance Agreements" in Note 10.
F-57
Separate Account Investments by Investment Category Underlying Variable
Annuity Contracts with GMDB and GMIB Features
The total Account Values of variable annuity contracts with GMDB and GMIB
features include amounts allocated to the guaranteed interest option, which
is part of the General Account and variable investment options that invest
through Separate Accounts in variable insurance trusts. The following table
presents the aggregate fair value of assets, by major investment category,
held by Separate Accounts that support variable annuity contracts with GMDB
and GMIB features. The investment performance of the assets impacts the
related Account Values and, consequently, the NAR associated with the GMDB
and GMIB benefits and guarantees. Because the Company's variable annuity
contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not
mutually exclusive.
INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
AS OF DECEMBER 31,
-----------------------------------
2018 2017
----------------- -----------------
GMDB GMIB GMDB GMIB
-------- -------- -------- --------
(IN MILLIONS)
Investment type:
----------------
Equity....................................... $ 35,541 $ 15,759 $ 41,658 $ 19,676
Fixed income................................. 5,173 2,812 5,469 3,110
Balanced..................................... 41,588 33,974 46,577 38,398
Other........................................ 852 290 968 314
-------- -------- -------- --------
Total........................................ $ 83,154 $ 52,835 $ 94,672 $ 61,498
======== ======== ======== ========
|
Hedging Programs for GMDB, GMIB, GIB and Other Features
Beginning in 2003, the Company established a program intended to hedge
certain risks associated first with the GMDB feature and, beginning in 2004,
with the GMIB feature of the Accumulator series of variable annuity
products. The program has also been extended to cover other guaranteed
benefits as they have been made available. This program utilizes derivative
contracts, such as exchange-traded equity, currency and interest rate
futures contracts, total return and/or equity swaps, interest rate swap and
floor contracts, swaptions, variance swaps as well as equity options, that
collectively are managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in the capital markets. At the present time, this program hedges
certain economic risks on products sold from 2001 forward, to the extent
such risks are not externally reinsured.
These programs do not qualify for hedge accounting treatment. Therefore,
gains (losses) on the derivatives contracts used in these programs,
including current period changes in fair value, are recognized in Net
investment income (loss) in the period in which they occur, and may
contribute to income (loss) volatility.
Variable and Interest-Sensitive Life Insurance Policies -- NLG
The NLG feature contained in variable and interest-sensitive life insurance
policies keeps them in force in situations where the policy value is not
sufficient to cover monthly charges then due. The NLG remains in effect so
long as the policy meets a contractually specified premium funding test and
certain other requirements.
The change in the liabilities for NLG liabilities, reflected in the General
Account in Future policy benefits and other policyholders' liabilities in
the consolidated balance sheets is summarized in the table below:
DIRECT REINSURANCE
LIABILITY CEDED NET
---------- ----------- -----
(IN MILLIONS)
Balance at January 1, 2016........................ $ 1,144 $ (510) $ 634
Other changes in reserves....................... 38 (96) (58)
---------- ----------- -----
Balance at December 31, 2016...................... 1,182 (606) 576
Paid guarantee benefits......................... (24) -- (24)
Other changes in reserves....................... (466) (58) (524)
---------- ----------- -----
Balance at December 31, 2017...................... 692 (664) 28
Paid guarantee benefits......................... (23) -- (23)
Other changes in reserves....................... 118 (69) 49
---------- ----------- -----
Balance at December 31, 2018...................... $ 787 $ (733) $ 54
========== =========== =====
|
F-58
9) REVENUE RECOGNITION
See "Revenue Recognition" in Note 2 for a description of the revenues
presented in the table below. The adoption of ASC 606 had no material impact
on revenue recognition in 2018. The table below presents the revenues
recognized for the years ended December 31, 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Investment management, advisory and service fees:
Base fees........................................... $ 728 $ 720 $ 674
Distribution services............................... 301 287 277
-------- -------- ------
Total investment management and service fees....... $ 1,029 $ 1,007 $ 951
======== ======== ======
Other income.......................................... $ 33 $ 35 $ 23
======== ======== ======
|
For revenue related to AB, see Note 19.
10)REINSURANCE AGREEMENTS
The Company assumes and cedes reinsurance with other insurance companies.
The Company evaluates the financial condition of its reinsurers to minimize
its exposure to significant losses from reinsurer insolvencies. Ceded
reinsurance does not relieve the originating insurer of liability. The
following table summarizes the effect of reinsurance:
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Direct premiums.................................... $ 836 $ 880 $ 850
Reinsurance assumed................................ 186 195 206
Reinsurance ceded.................................. (160) (171) (176)
-------- -------- ------
Net premiums....................................... $ 862 $ 904 $ 880
======== ======== ======
Policy charges and fee income ceded................ $ 467 $ 718 $ 640
======== ======== ======
Policyholders' benefits ceded...................... $ 592 $ 694 $ 942
======== ======== ======
|
Ceded Reinsurance
The Company reinsures most of its new variable life, UL and term life
policies on an excess of retention basis. The Company generally retains on a
per life basis up to $25 million for single lives and $30 million for joint
lives with the excess 100% reinsured. The Company also reinsures risk on
certain substandard underwriting risks and in certain other cases.
Effective February 1, 2018, AXA Equitable Life entered into a coinsurance
reinsurance agreement (the "Coinsurance Agreement") to cede 90% of
its single premium deferred annuities ("SPDA") products issued between
1978-2001 and its Guaranteed Growth Annuity ("GGA") single premium deferred
annuity products issued between 2001-2014. As a result of this agreement,
AXA Equitable Life transferred securities with a market value of $604
million and cash of $31 million to equal the statutory reserves of
approximately $635 million. As the risks transferred by AXA Equitable Life
to the reinsurer under the Coinsurance Agreement are not considered
insurance risks and therefore do not qualify for reinsurance accounting, AXA
Equitable Life applied deposit accounting. Accordingly, AXA Equitable Life
recorded the transferred assets of $635 million as a deposit asset recorded
in Other assets, net of the ceding commissions paid to the reinsurer.
At December 31, 2018 and 2017, the Company had reinsured with non-affiliates
in the aggregate approximately 2.9% and 3.5%, respectively, of its current
exposure to the GMDB obligation on annuity contracts in-force and, subject
to certain maximum amounts or caps in any one period, approximately 15.5%
and 16.8% of its current liability exposure, respectively, resulting from
the GMIB feature. For additional information, see Note 8.
Based on management's estimates of future contract cash flows and
experience, the estimated net fair values of the ceded GMIB reinsurance
contracts, considered derivatives were $1,991 million and $10,488 million at
December 31, 2018 and 2017, respectively. The estimated fair values
decreased $8,497 million and $268 million during 2018 and 2016,
respectively, and increased $174 million during 2017.
F-59
At December 31, 2018 and 2017, third-party reinsurance recoverables related
to insurance contracts amounted to $2,243 million and $2,420 million,
respectively. Additionally, $1,689 million and $1,882 million of the amounts
due from reinsurers related to two specific reinsurers, Zurich Insurance
Company Ltd. (AA -- rating by S&P), and Paul Revere Life Insurance Company
(A -- rating by S&P).
Reinsurance payables related to insurance contracts were $113 million and
$134 million, at December 31, 2018 and 2017, respectively.
The Company cedes substantially all of its group health business to a
third-party insurer. Insurance liabilities ceded totaled $62 million and $71
million at December 31, 2018 and 2017, respectively.
The Company also cedes a portion of its extended term insurance and paid-up
life insurance and substantially all of its individual disability income
business through various coinsurance agreements.
Assumed Reinsurance
In addition to the sale of insurance products, the Company currently acts as
a professional retrocessionaire by assuming risk from professional
reinsurers. The Company assumes accident, life, health, aviation, special
risk and space risks by participating in or reinsuring various reinsurance
pools and arrangements. Reinsurance assumed reserves were $712 million and
$716 million at December 31, 2018 and 2017, respectively.
For reinsurance agreements with affiliates, see "Related Party Transactions"
in Note 12.
11)LONG-TERM DEBT
Disposition of Real Estate Joint Ventures
In March 2018, the Company sold its interest in two consolidated real estate
joint ventures to AXA France for a total purchase price of approximately
$143 million, which resulted in a pre-tax loss of $0.2 million and the
reduction of $202 million of long-term debt on the Company's balance sheet
for the year ended December 31, 2018.
12)RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control
or exercise significant influence over the other party in making financial
or operating decisions. The Company has entered into a number of related
party transactions with AXA and its subsidiaries that are not part of the
Company (collectively, "AXA Affiliates") and other related parties that are
described herein.
Since transactions with related parties may raise potential or actual
conflicts of interest between the related party and the Company, the Company
is subject to Holdings' related party transaction policy which requires
certain related party transactions to be reviewed and approved by
independent Audit Committee members.
Cost Sharing and General Service Agreements
In the second quarter of 2018, AXA Equitable entered into a general services
agreement with Holdings whereby AXA Equitable will benefit from the services
received by Holdings from AXA Affiliates for a limited period following the
Holdings IPO under a transition services agreement. The general services
agreement with Holdings replaces existing cost-sharing and general service
agreements with various AXA Affiliates. AXA Equitable continues to provide
services to Holdings and various AXA Affiliates under a separate existing
general services agreement with Holdings. Costs allocated to the Company
from Holdings totaled $138 million for the year ended December 31, 2018 and
are allocated based on cost center tracking of expenses. The cost centers
are approved once a year and are updated based on business area needs
throughout the year.
Loans to Affiliates:
AFFILIATE LOANS
On April 20, 2018, AXA Equitable made a loan of $800 million to Holdings
with an interest rate of 3.69% and maturing on April 20, 2021. Holdings
repaid $200 million of the note on December 21, 2018. The unpaid principal
balance of the note as of December 31, 2018 is $600 million.
F-60
In September 2007, AXA issued a $700 million 5.7% Senior Unsecured Note to
the Company. In January 2018, AXA pre-paid $50 million of the note. In April
2018, AXA pre-paid the remaining unpaid principal balance of this note.
SENIOR SURPLUS NOTES
On December 28, 2018, AXA Equitable, issued a $572 million senior surplus
note due December 28, 2019 to Holdings, which bears interest at a fixed rate
of 3.75%, payable semi-annually. The surplus note is intended to have
priority in right of payments and in all other respects to any and all other
surplus notes issued by AXA Equitable at any time. AXA Equitable repaid this
note on March 5, 2019.
Affiliate fees, revenue and expenses
INVESTMENT MANAGEMENT AND SERVICE FEES AND EXPENSES
AXA Equitable FMG, a subsidiary of AXA Equitable, provides investment
management and administrative services to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts, all of which are considered related parties. Investment
management and service fees earned are calculated as a percentage of assets
under management and are recorded as revenue as the related services are
performed.
AXA Investment Managers Inc. ("AXA IM") and AXA Rosenberg Investment
Management LLC ("AXA Rosenberg") provide sub-advisory services with respect
to certain portfolios of EQAT, VIP Trust and the Other AXA Trusts. Also, AXA
IM and AXA Real Estate Investment Managers ("AXA REIM") manage certain
General Account investments. Fees paid to these affiliates are based on
investment advisory service agreements with each affiliate.
Effective December 31, 2018, AXA Equitable transferred its interest in ABLP,
AB Holdings and the General Partner to a newly formed subsidiary and
distributed the shares of the subsidiary to its direct parent which
subsequently distributed the shares to Holdings (the "AB Business
Transfer"). Accordingly, AB's related party transactions with AXA Affiliates
and mutual funds sponsored by AB are now reflected as a discontinued
operation in the Company's consolidated financial statements for all periods
presented. Investment management and other services provided by AB to mutual
funds sponsored by AB prior to the AB Business Transfer will continue based
upon the Company's business needs. See Note 19 for further details of the AB
Business Transfer and the discontinued operation.
AFFILIATED DISTRIBUTION REVENUE AND EXPENSES
AXA Distributors receives commissions and fee revenue from MONY America for
sales of its insurance products. The commissions and fees earned from MONY
America are based on the various selling agreements.
AXA Equitable pays commissions and fees to AXA Distribution Holding
Corporation and its subsidiaries ("AXA Distribution") for sales of insurance
products. The commissions and fees paid to AXA Distribution are based on
various selling agreements.
Insurance related transactions
Prior to April 2018, AXA Equitable ceded to AXA RE Arizona, an indirect,
wholly owned subsidiary of Holdings, a (i) 100% quota share of all
liabilities for variable annuities with GMxB riders issued on or after
January 1, 2006 and in-force on September 30, 2008 (the "GMxB Business"),
(ii) 100% quota share of all liabilities for variable annuities with GMIB
riders issued on or after May 1, 1999 through August 31, 2005 in excess of
the liability assumed by two unaffiliated reinsurers, which are subject to
certain maximum amounts or limitations on aggregate claims, and (iii) 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under certain series of universal life insurance policies issued by AXA
Equitable on or after June 1, 2003 through June 30, 2007.
On April 12, 2018, AXA Equitable completed the unwind of the reinsurance
previously provided to AXA Equitable by AXA RE Arizona. Accordingly, all of
the business previously ceded to AXA RE Arizona, with the exception of the
GMxB Business, was novated to EQ AZ Life Re Company ("EQ AZ Life Re"), a
newly formed captive insurance company organized under the laws of Arizona,
which is an indirect wholly owned subsidiary of Holdings. Following the
novation of business to EQ AZ Life Re, AXA RE Arizona was merged with and
into AXA Equitable. Following AXA RE Arizona's merger with and into AXA
Equitable, the GMxB Business is not subject to any new internal or
third-party reinsurance arrangements, though in the future AXA Equitable may
reinsure the GMxB Business with third parties.
AXA RE Arizona novated the Life Business from AXA RE Arizona to EQ AZ Life
Re as part of the GMxB Unwind. As a result, EQ AZ Life Re reinsures a 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under UL insurance policies issued by AXA Equitable on or after June 1, 2003
through June 30, 2007 and the Excess Risks.
F-61
The GMxB Unwind was considered a pre-existing relationship required to be
effectively settled at fair value. The loss relating to this relationship
resulted from the settlement of the reinsurance contracts at fair value and
the write-off of previously recorded assets and liabilities related to this
relationship recorded in the Company's historical accounts. The pre-tax loss
recognized in the second quarter of 2018 was $2.6 billion ($2.1 billion net
of tax). The Company wrote-off a $1.8 billion deferred cost of reinsurance
asset which was previously reported in Other assets. Additionally, the
remaining portion of the loss was determining by calculating the difference
between the fair value of the assets received compared to the fair value of
the assets and liabilities already recorded within the Company's
consolidated financial statements. The Company's primary assets previously
recorded were reinsurance recoverables, including the reinsurance
recoverable associated with GMDB business. There was an approximate $400
million difference between the fair value of the GMDB recoverable compared
to its carrying value which is accounted for under ASC 944.
The assets received and the assets removed were as follows:
AS OF APRIL 12, 2018
(IN MILLIONS)
ASSETS RECEIVED ASSETS REMOVED
--------------- ----------------
Assets at fair value:
Fixed income securities.................... $ 7,083
Short-term investments..................... 205
Money market funds......................... 2
Accrued interest........................... 43
Derivatives................................ 282
Cash and cash equivalents.................. 1,273
---------------
Total...................................... $ 8,888
===============
Deferred cost of reinsurance asset........... $ 1,839
GMDB ceded reserves.......................... 2,317
GMIB reinsurance contract asset.............. 7,463
Payable to AXA RE Arizona.................... 270
----------------
Total...................................... $ 11,889
================
|
Significant non-cash transactions involved in the unwind of the reinsurance
previously provided to AXA Equitable Life by AXA RE Arizona included:
(a) the increase in total investments includes non-cash activities of $7,615
million for assets received related to the recapture transaction,
(b) cancellation of the $300 million surplus note between the Company and
AXA RE Arizona, and (c) settlement of the intercompany receivables/payables
to AXA RE Arizona of $270 million. In addition, upon merging the remaining
assets of AXA Re Arizona into AXA Equitable, $1.2 billion of deferred tax
assets were recorded on the balance sheet through an adjustment to Capital
in excess of par value.
The reinsurance arrangements with EQ AZ Life Re provide important capital
management benefits to AXA Equitable. At December 31, 2018, the Company's
GMIB reinsurance asset with EQ AZ Life Re had carrying values of $259
million and is reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2018 totaled approximately $100 million. Ceded claims
paid in 2018 were $78 million.
Prior to April 2018, AXA Equitable reinsured to AXA RE Arizona, a 100% quota
share of all liabilities for variable annuities with enhanced GMDB and GMIB
riders issued on or after January 1, 2006 and in-force on September 30,
2008. AXA RE Arizona also reinsured a 90% quota share of level premium term
insurance issued by AXA Equitable on or after March 1, 2003 through
December 31, 2008 and lapse protection riders under UL insurance policies
issued by AXA Equitable on or after June 1, 2003 through June 30, 2007. The
reinsurance arrangements with AXA RE Arizona provided important capital
management benefits to AXA Equitable. At December 31, 2017, the Company's
GMIB reinsurance asset with AXA RE Arizona had a carrying value of $8,594
million and was reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2017 and 2016 totaled approximately $454 million
and $447 million, respectively. Ceded claims paid in 2017 and 2016 were
$213 million and $65 million, respectively.
The Company receives statutory reserve credits for reinsurance treaties with
EQ AZ Life Re to the extent that EQ AZ Life Re holds assets in an
irrevocable trust (the "Trust"). At December 31, 2018, EQ AZ Life Re held
assets of $1.6 billion in the Trust, and had letters of credit of
$2.5 billion, which are guaranteed by Holdings. Under the reinsurance
transactions, EQ AZ Life Re is permitted to transfer assets from the Trust
under certain circumstances. The level of statutory reserves held by EQ AZ
Life Re fluctuate based on market movements, mortality experience and
policyholder behavior. Increasing reserve requirements may necessitate that
additional assets be placed in trust and/or securing additional letters of
credit, which could adversely impact EQ AZ Life Re's liquidity.
F-62
AXA Global Life retrocedes a quota share portion of certain life and health
risks of various AXA Affiliates to AXA Equitable on a one-year term basis.
Also, AXA Life Insurance Company Ltd. cedes a portion of its variable
deferred annuity business to AXA Equitable.
Premiums earned in 2018, 2017 and 2016 were $20 million, $20 million and $20
million, respectively. Claims and expenses paid in 2018, 2017 and 2016 were
$8 million, $5 million, and $6 million, respectively.
REINSURANCE CEDED
AXA Equitable cedes a portion of its life, health and catastrophe insurance
business through reinsurance agreements to AXA Global Life, an affiliate.
AXA Global Life, in turn, retrocedes a quota share portion of these risks
prior to 2008 to AXA Equitable on a one-year term basis.
AXA Equitable has entered into a Life Catastrophe Excess of Loss Reinsurance
Agreement with a number of subscribing reinsurers, including AXA Global
Life. AXA Global Life participates in 5% of the pool, pro-rata, across the
upper and lower layers.
Premiums and expenses paid for the above agreements in 2018, 2017 and 2016
were $4 million, $4 million, and $4 million, respectively.
Other Transactions
On October 1, 2018, AXA Financial merged with and into its direct parent,
Holdings, with Holdings continuing as the surviving entity. As a result,
Holdings assumed AXA Financial's obligations with respect to the Company,
including obligations related to certain benefit plans.
In March 2018, AXA Equitable sold its interest in two consolidated real
estate joint ventures to AXA France for a total purchase price of
approximately $143 million, which resulted in a pre-tax loss of $0.2 million
and the reduction of $202 million of long-term debt on the Company's balance
sheet for the year ended December 31, 2018.
In 2016, AXA Equitable and Saum Sing LLC ("Saum Sing"), an affiliate, formed
Broad Vista Partners LLC ("Broad Vista"), of which AXA Equitable owns 70%
and Saum Sing owns 30%. On June 30, 2016, Broad Vista entered into a real
estate joint venture with a third party and AXA Equitable invested
approximately $25 million.
Insurance Coverage Provided by XL Catlin
On September 12, 2018, AXA Group acquired XL Catlin. Prior to the
acquisition, AXA Equitable had ceded part of our disability income business
to XL Catlin and as of December 31, 2018, the reserves ceded were $93
million.
Expenses and Revenues for 2018, 2017 and 2016
The table below summarizes the expenses reimbursed to/from the Company and
the fees received/paid by the Company in connection with certain services
described above for the years ended December 31, 2018, 2017 and 2016.
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
EXPENSES PAID OR ACCRUED FOR:
Paid or accrued commission and fee expenses for
sale of insurance products by AXA Distribution.. $ 613 $ 608 $ 587
General services provided by AXA Affiliates....... 109 186 188
Investment management services provided by AXA
IM, AXA REIM and AXA Rosenberg.................. 2 5 2
-------- -------- --------
Total............................................. $ 724 $ 799 $ 777
======== ======== ========
REVENUE RECEIVED OR ACCRUED FOR:
Investment management and administrative services
provided to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts................................ $ 727 $ 720 $ 674
General services provided to AXA Affiliates....... 463 439 497
Amounts received or accrued for commissions and
fees earned for sale of MONY America's
insurance products.............................. 44 45 43
-------- -------- --------
Total............................................. $ 1,234 $ 1,204 $ 1,214
======== ======== ========
|
F-63
13)EMPLOYEE BENEFIT PLANS
401(k)
AXA Equitable sponsors the AXA Equitable 401(k) Plan, a qualified defined
contribution plan for eligible employees and financial professionals. The
plan provides for both a company contribution and a discretionary
profit-sharing contribution. Expenses associated with this 401(k) Plan were
$19 million, $15 million and $16 million for the years ended December 31,
2018, 2017 and 2016, respectively. In December 2018 the Company announced a
3% Company match for the AXA Equitable 401(k) Plan beginning January 1,
2019. This match will supplement the existing Company contribution on
eligible compensation.
Pension plan
AXA Equitable also sponsors the AXA Equitable Retirement Plan (the "AXA
Equitable QP"), a frozen qualified defined benefit pension plan covering its
eligible employees and financial professionals. This pension plan is
non-contributory and its benefits are generally based on a cash balance
formula and/or, for certain participants, years of service and average
income over a specified period in the plan. Effective December 31, 2015,
primary liability for the obligations of AXA Equitable Life under the AXA
Equitable Life QP was transferred from AXA Equitable Life to AXA Financial,
and upon the merger of AXA Financial into Holdings, Holdings assumes primary
liability under terms of an Assumption Agreement. AXA Equitable Life remains
secondarily liable for its obligations under the AXA Equitable Life QP and
would recognize such liability in the event Holdings does not perform under
the terms of the Assumption Agreement.
The AXA Equitable QP is not governed by a collective-bargaining agreement
and is not under a financial improvement plan or a rehabilitation plan. For
the years ended December 31, 2018, 2017 and 2016, expenses related to the
plan were $60 million, $27 million and $31 million, respectively.
The following table presents the funded status of the plan.
AS OF DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
LEGAL NAME OF PLAN: AXQ EQUITABLE RETIREMENT PLAN EIN# 13-5570651
Total Plan Assets................................................ $ 1,993 $ 2,325
======== ========
Accumulated Benefit Obligation................................... $ 2,039 $ 2,389
======== ========
Funded Status.................................................... 97.8% 97.3%
|
In addition to the AXA Equitable QP, AXA Equitable Life sponsors a
non-qualified retirement plan, a medical and life retiree plan, and a post
employment plan. The expenses related to these plans were $70 million, $37
million and $44 million for the years ended December 31, 2018, 2017 and
2016, respectively.
14)SHARE-BASED COMPENSATION PROGRAMS
Compensation costs for 2018, 2017 and 2016 for share-based payment
arrangements as further described herein are as follows:
YEARS ENDED DECEMBER 31,
-----------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
Performance Shares/(1)/........................... $ 12 $ 18 $ 17
Stock Options..................................... 2 1 1
AXA Shareplan..................................... -- 9 14
Restricted Stock Unit Awards/(2)/................. 16 2 --
Other Compensation Plans/(3)/..................... -- -- 1
----------- ----------- -----------
Total Compensation Expenses....................... $ 30 $ 30 $ 33
=========== =========== ===========
|
/(1)/Reflects change to performance share retirement rules. Specifically,
individuals who retire at any time after the grant date will continue to
vest in their 2017 performance shares while individuals who retire prior
to March 1, 2019 will forfeit all 2018 performance shares.
/(2)/Reflects a $10 million adjustment for awards in 2018 with graded
vesting, service-only conditions from the graded to the straight-line
attribution method.
/(3)/Includes stock appreciation rights and employee stock purchase plans.
F-64
In 2017 and prior years, equity awards for employees and directors were
available under the umbrella of AXA's global equity program. Accordingly,
equity awards granted in 2017 and prior years were linked to AXA's stock.
Following the IPO, Holdings has granted equity awards under the AXA
Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the "Omnibus Plan")
which was adopted by Holdings on April 25, 2018. Awards under the Omnibus
Plan are linked to Holdings' common stock. As of December 31, 2018, the
common stock reserved and available for issuance under the Omnibus Plan was
5.5 million shares.
2018 Equity Awards
All 2018 equity awards for Company employees and directors were granted
under the Omnibus Plan. Accordingly, all grants discussed in this section
will be settled in shares of Holdings' common stock. As described below,
Holdings made various grants of equity awards linked to the value of
Holdings' common stock in 2018. For awards with graded vesting schedules and
service-only vesting conditions, including restricted stock units ("RSUs")
and other forms of share-based payment awards, the Company applies a
straight-line expense attribution policy for the recognition of compensation
cost. Actual forfeitures with respect to the 2018 grants were considered
immaterial in the recognition of compensation cost.
TRANSACTION INCENTIVE AWARDS
On May 9, 2018, coincident with the IPO, Holdings granted one-time
"Transaction Incentive Awards" to executive officers and certain other
Company employees in the form of 0.6 million Holdings RSUs. Fifty percent of
the Holdings RSUs will vest based on service over a two-year period from the
IPO date (the "Service Units"), and fifty percent will vest based on service
and a market condition (the "Performance Units"). The market condition is
based on share price growth of at least 130% or 150% within a two or
five-year period, respectively. If the market condition is not achieved, 50%
of the Performance Units may still vest based on five years of continued
service and the remaining Performance Units will be forfeited. The $6
million aggregate grant-date fair value of the 0.3 million Service Units was
measured at the $20 IPO price of a Holdings share and will be charged to
compensation expense over the stated requisite service periods.
The grant-date fair value of half of the Performance Units, or 0.2 million
Holdings RSUs, was also measured at the $20 IPO price for a Holdings share
as employees are still able to vest in these awards even if the share price
growth targets are not achieved. The resulting $3 million for these awards
will be charged to compensation expense over the five-year requisite service
period. The grant-date fair value of $16.47 was used to value the remaining
half of the Performance Units that are subject to risk of forfeiture for
non-achievement of the Holdings share price conditions. The grant date fair
value was measured using a Monte Carlo simulation from which
a five-year requisite service period was derived, representing the median of
the distribution of stock price paths on which the market condition is
satisfied, over which the total $3 million compensation expense will be
recognized. In 2018, the Company recognized compensation expense associated
with the Transaction Incentive Awards of approximately $6 million.
SPECIAL IPO GRANT
Also, on May 9, 2018, Holdings made a grant of 0.2 million Holdings RSUs to
Company employees , or 50 restricted stock units to each eligible
individual, that cliff vested on November 9, 2018. The grant-date fair value
of the award was measured using the $20 IPO price for a Holdings share and
the resulting $5 million has been recognized as compensation expense over
the six-month service period ending November 9, 2018.
ANNUAL AWARDS UNDER 2018 EQUITY PROGRAM
Annual awards under Holdings' 2018 equity program consisted of a mix of
equity vehicles including Holdings RSUs, Holdings stock options and Holdings
performance shares. If Holdings pays any ordinary dividend in cash, all
outstanding Holdings RSUs and performance shares will accrue dividend
equivalents in the form of additional Holdings RSUs or performance shares to
be settled or forfeited consistent with the terms of the related award.
Holdings RSUs
On May 17, 2018, Holdings granted 0.8 million Holdings RSUs to Company
employees that vest ratably in equal annual installments over a three-year
period on each of the first three anniversaries of March 1, 2018. The fair
value of the award was measured using the closing price of the Holdings
share on the grant date, and the resulting $18 million will be recognized as
compensation expense over the shorter of the vesting term or the period up
to the date at which the participant becomes retirement eligible but not
prior to March 1, 2019.
F-65
Holdings Stock Options
On June 11, 2018, Holdings granted 0.9 million Holdings stock options to
Company employees. These options expire on March 1, 2028 and have
a three-year graded vesting schedule, with one-third vesting on each of
the three anniversaries of March 1, 2018. The exercise price for the options
is $21.34, which was the closing price of a Holdings share on the grant
date. The weighted average grant date fair value per option was estimated
at $4.61 using a Black-Scholes options pricing model. Key assumptions used
in the valuation included expected volatility of 25.4% based on historical
selected peer data, a weighted average expected term of 5.7 years as
determined by the simplified method, an expected dividend yield of 2.44%
based on Holdings' expected annualized dividend, and a risk-free interest
rate of 2.83%. The total fair value of these options of approximately $4
million will be charged to expense over the shorter of the vesting period or
the period up to the date at which the participant becomes retirement
eligible but not prior to March 1, 2019. In 2018, the Company recognized
expense associated with the June 11, 2018 option grant of approximately $2
million.
Holdings Performance Shares
On May 17, 2018, Holdings granted 0.4 million unearned Holdings performance
shares to Company employees, subject to performance conditions and a
cliff-vesting term ending March 1, 2021. The performance shares consist of
two distinct tranches; one based on the Company's return-on-equity targets
(the "ROE Performance Shares") and the other based on the Holdings' relative
total shareholder return targets (the "TSR Performance Shares"), each
comprising approximately one-half of the award. Participants may receive
from 0% to 200% of the unearned performance shares granted. The grant-date
fair value of the ROE Performance Shares will be established once the 2019
and 2020 Non-GAAP ROE target are determined and approved.
The grant-date fair value of the TSR Performance Shares was measured
at $23.17 using a Monte Carlo approach. Under the Monte Carlo approach,
stock returns were simulated for Holdings and the selected peer companies to
estimate the payout percentages established by the conditions of the award.
The resulting $4 million aggregate grant-date fair value of the unearned TSR
Performance Shares will be recognized as compensation expense over the
shorter of the cliff-vesting period or the period up to the date at which
the participant becomes retirement eligible but not prior to March 1, 2019.
In 2018, the Company recognized expense associated with the TSR Performance
Share awards of approximately $2 million.
Prior Equity Award Grants and Settlements
Prior to adoption of the Omnibus Plan, Company employees were granted AXA
ordinary share options under the AXA Stock Option Plan for AXA Financial
Employees and Associates (the "Stock Option Plan"). There is no limitation
in the Stock Option Plan on the number of shares that may be issued pursuant
to option or other grants.
Employees were also granted AXA performance shares under the AXA
International Performance Shares Plan established for each year (the
"Performance Share Plan").
The fair values of these prior awards are measured at the grant date by
reference to the closing price of the AXA ordinary share, and the result, as
adjusted for achievement of performance targets and pre-vesting forfeitures,
generally is attributed over the shorter of the requisite service period,
the performance period, if any, or to the date at which retirement
eligibility is achieved and subsequent service no longer is required for
continued vesting of the award.
2017 PERFORMANCE SHARES GRANT
On June 21, 2017, under the terms of the Performance Share Plan, AXA awarded
approximately 1.7 million unearned performance shares to Company employees.
The extent to which 2017-2019 cumulative performance targets measuring the
performance of AXA and the Company are achieved will determine the number of
performance shares earned, which may vary between 0% and 130% of the number
of performance shares at stake. The performance shares earned during this
performance period will vest and be settled on the fourth anniversary of the
award date. The plan will settle in AXA ordinary shares to all participants.
In 2018 and 2017, the expense associated with the June 21, 2017 grant of
performance shares was approximately $4 million and $9 million, respectively.
2016 PERFORMANCE SHARES GRANT
On June 6, 2016, under the terms of the Performance Share Plan, AXA awarded
approximately 1.9 million unearned performance shares to Company employees
of AXA Equitable. The extent to which 2017-2019 cumulative performance
targets measuring the performance of AXA and the Company are achieved will
determine the number of performance shares earned, which may vary between 0%
and 130% of the number of performance shares at stake. The performance
shares earned during this performance period will vest and be settled on the
fourth anniversary of the award date. The plan will settle in AXA ordinary
shares to all participants. In 2018, 2017 and 2016, the expense associated
with the June 6, 2016 grant of performance shares was approximately $4
million, $4 million and $10 million, respectively.
F-66
SETTLEMENT OF 2014 GRANT IN 2017
On March 24, 2017, share distributions totaling of approximately $21 million
were made to active and former AXA Equitable employees in settlement of
2.3 million performance shares earned under the terms of the AXA Performance
Share Plan 2014.
OTHER GRANTS
Prior to the IPO, non-officer directors were granted restricted AXA ordinary
shares (prior to 2011, AXA ADRs) and unrestricted AXA ordinary shares (prior
to March 15, 2010, AXA ADRs) annually under The Equity Plan for Directors.
AXA restricted stock units ("AXA RSUs") were also granted to certain Company
executives. The AXA RSUs are phantom AXA ordinary shares that, once vested,
entitle the recipient to a cash payment based on the average closing price
of the AXA ordinary share over the twenty trading days immediately preceding
the vesting date.
Summary of Stock Option Activity
A summary of activity in the AXA and Holdings option plans during 2018
follows:
OPTIONS OUTSTANDING
-------------------------------------------------------------------------
EQH SHARES AXA ORDINARY SHARES AXA ADRS/(2)/
---------------------- --------------------------- ----------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER AVERAGE NUMBER AVERAGE NUMBER AVERAGE
OUTSTANDING EXERCISE OUTSTANDING EXERCISE OUTSTANDING EXERCISE
(IN 000'S) PRICE (IN 000'S) PRICE (IN 000'S) PRICE
----------- --------- ----------- -------------- ----------- ---------
Options Outstanding at January 1, 2018....... -- $ -- 3,653 (EURO) 17.36 20 $ 20.98
Options granted.............................. 869 $ 21.34 -- (EURO) -- -- $ --
Options exercised............................ -- $ -- (337) (EURO) 11.80 -- $ --
Options forfeited, net....................... (35) $ 21.34 -- (EURO) -- -- $ --
Options expired.............................. -- $ -- (707) (EURO) 17.45 (5) $ 35.25
----------- ----------- -----------
Options Outstanding at December 31, 2018..... 834 $ 21.34 2,609 (EURO) 18.20 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 2,383 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. 9.16 4.50 0.58
=========== =========== ===========
Options Exercisable at December 31, 2018..... -- $ -- 1,369 (EURO) 15.27 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 7,698 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. -- 2.45 0.58
=========== =========== ===========
|
/(1)/Aggregate intrinsic value, presented in thousands, is calculated as the
excess of the closing market price on December 31, 2018 of the
respective underlying shares over the strike prices of the option
awards. For awards with strike prices higher then market prices,
intrinsic value is shown as zero.
/(2)/AXA ordinary shares will be delivered to participants in lieu of AXA
ADRs at exercise or maturity.
F-67
For the purpose of estimating the fair value of stock option awards, the
Company applies the Black-Scholes model and attributes the result over the
requisite service period using the graded-vesting method. A Monte-Carlo
simulation approach was used to model the fair value of the conditional
vesting feature of the awards of options to purchase Holdings and AXA
ordinary shares. Shown below are the relevant input assumptions used to
derive the fair values of options awarded in 2018, 2017 and 2016,
respectively.
EQH Shares AXA Ordinary Shares/(1)/
------------ ------------------------
2018 2018 2017 2016
------------ ---- -------- ---------
Dividend yield............................... 2.44% NA 6.53% 6.49%
Expected volatility.......................... 25.40% NA 25.05% 26.6%
Risk-free interest rates..................... 2.83% NA 0.59% 0.33%
Expected life in years....................... 9.7 NA 8.8 8.1
Weighted average fair value per option at
grant date................................. $ 4.61 NA $ 2.01 $ 2.06
|
/(1)/There were no options to buy AXA Ordinary Shares awarded during 2018. As
such, the input assumptions for 2018 are not applicable.
As of December 31, 2018, approximately $1 million of unrecognized
compensation cost related to unvested stock option awards, net of estimated
pre-vesting forfeitures, is expected to be recognized by the Company over a
weighted average period of 2.2 years. As of December 31, 2018, approximately
$3 million of unrecognized compensation cost related to Holdings unvested
stock option awards, net of estimated pre-vesting forfeitures, is expected
to be recognized by the Company over a weighted average period of 0.8 years.
Options
The fair value of AXA stock options is calculated using the Black-Scholes
option pricing model. The expected AXA dividend yield is based on market
consensus. AXA share price volatility is estimated on the basis of implied
volatility, which is checked against an analysis of historical volatility to
ensure consistency. The risk-free interest rate is based on the Euro Swap
Rate curve for the appropriate term. The effect of expected early exercise
is taken into account through the use of an expected life assumption based
on historical data.
Restricted Awards
The market price of a Holdings share is used as the basis for the fair value
measure of a Holdings RSU. For purposes of determining compensation cost for
stock-settled Holdings RSUs, fair value is fixed at the grant date until
settlement, absent modification to the terms of the award.
For 2018, 2017 and 2016, respectively, the Company recognized compensation
costs of $16 million, $2 million and $0 million for outstanding restricted
stock and AXA RSUs. The fair values of awards made under these programs are
measured at the grant date by reference to the closing price of the
unrestricted shares, and the result generally is attributed over the shorter
of the requisite service period, the performance period, if any, or to the
date at which retirement eligibility is achieved and subsequent service no
longer is required for continued vesting of the award. Remeasurements of
fair value for subsequent price changes until settlement are made only for
AXA RSUs. At December 31, 2018, approximately 2.3 million restricted
Holdings and AXA ordinary share awards remain unvested. Unrecognized
compensation cost related to these awards totaled approximately $19 million,
net of estimated pre-vesting forfeitures, and is expected to be recognized
over a weighted average period of 1.2 years.
The following table summarizes restricted Holdings share and AXA ordinary
share activity for 2018.
WEIGHTED WEIGHTED
SHARES OF HOLDINGS AVERAGE SHARES OF AXA AVERAGE
RESTRICTED STOCK GRANT DATE RESTRICTED STOCK GRANT DATE
(IN THOUSANDS) FAIR VALUE (IN THOUSANDS) FAIR VALUE
------------------ ------------- ---------------- ---------------
Unvested as of January 1, 2018............... -- $ -- 84 $ 21.07
Granted...................................... 1,696 $ 20.83 -- $ --
Cancelled.................................... 56 $ 21.21 -- $ 26.64
Vested....................................... 381 $ 21.09 36 $ 21.99
------------------ ------------- --------------- ---------------
Unvested as of December 31, 2018............. 1,259 $ 21.00 48 $ 20.38
================== ============= =============== ===============
|
Employee Stock Purchase Plans
AXA SHAREPLAN 2017
In 2017, eligible employees of AXA Equitable were offered the opportunity to
purchase newly issued AXA ordinary shares, subject to plan limits, under the
terms of AXA Shareplan, AXA's annual global stock purchase plan. Eligible
employees could have reserved a share purchase during the reservation period
from August 28, 2017 through September 8, 2017 and could have canceled their
reservation or elected to
F-68
make a purchase for the first time during the retraction/subscription period
from October 13, 2017 through October 17, 2017. The U.S. dollar purchase
price was determined by applying the U.S. dollar/Euro forward exchange rate
on October 11, 2017 to the discounted formula subscription price in Euros.
Investment Option A permitted participants to purchase AXA ordinary shares
at a 20% formula discounted price of (Euro)20.19 per share. Investment
Option B permitted participants to purchase AXA ordinary shares at an 8.98%
formula discounted price of (Euro)22.96 per share on a leveraged basis with
a guaranteed return of initial investment plus a portion of any appreciation
in the undiscounted value of the total shares purchased. For purposes of
determining the amount of any appreciation, the AXA ordinary share price
will be measured over a fifty-two week period preceding the scheduled end
date of AXA Shareplan 2018, which is July 1, 2022. All subscriptions became
binding and irrevocable on October 17, 2017.
The Company recognized compensation expense of $9 million and $14 million in
the years ended December 31, 2017 and 2016 respectively, in connection with
each respective year's offering of AXA stock under the AXA Shareplan,
representing the aggregate discount provided to AXA Equitable participants
for their purchase of AXA stock under each of those plans, as adjusted for
the post-vesting, five-year holding period. AXA Equitable participants in
AXA Shareplan 2017 and 2016 primarily invested under Investment Option B for
the purchase of approximately of 4 million and 6 million AXA ordinary
shares, respectively.
HOLDINGS STOCK PURCHASE PLAN
During 2018, Holdings introduced the AXA Equitable Holdings, Inc. Stock
Purchase Program ("SPP"). Participants are able to contribute up to 100% of
their eligible compensation and receive a matching contribution in cash
equal to 15% of their payroll contribution, which will be used to purchase
Holdings shares. Purchases will be made on the last trading day of each
month at the prevailing market rate.
15)INCOME TAXES
A summary of the income tax (expense) benefit in the consolidated statements
of income (loss) follows:
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Income tax (expense) benefit:
Current (expense) benefit........................... $ 234 $ (6) $ (274)
Deferred (expense) benefit.......................... 212 1,216 438
------ -------- ------
Total................................................. $ 446 $ 1,210 $ 164
====== ======== ======
|
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
income taxes and noncontrolling interest by the expected Federal income tax
rate of 21%, 35% and 35% for 2018, 2017 and 2016, respectively. The sources
of the difference and their tax effects are as follows:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Expected income tax (expense) benefit................ $ 311 $ (542) $ 14
Noncontrolling interest.............................. (1) -- --
Non-taxable investment income (loss)................. 104 241 173
Tax audit interest................................... (11) (6) (14)
State income taxes................................... (1) (3) (6)
Tax settlements/uncertain tax position release....... -- 221 --
Change in tax law.................................... 46 1,308 --
Other................................................ (2) (9) (3)
------ -------- ------
Income tax (expense) benefit......................... $ 446 $ 1,210 $ 164
====== ======== ======
|
The Tax Cuts and Jobs Act (the "Tax Reform Act") was enacted on December 22,
2017. The SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to
address the application of U.S. GAAP in situations where a company does not
have the necessary information available to complete its accounting for
certain income tax effects of the Tax Reform Act. In accordance with SAB
118, the Company determined reasonable estimates for certain effects of the
Tax Reform Act and recorded those estimates as provisional amounts in the
2017 financial statements. The accounting for the income tax effects of the
Tax Reform Act has been completed.
F-69
The components of change in tax law are as follows:
. An income tax expense of $4 million from the revaluation of deferred tax
assets and liabilities that existed at the time of enactment. The
calculation of cumulative temporary differences has been refined.
. An income tax expense of $13 million related to the decrease in federal
tax benefit allowable for audit interest as a result of lower corporate
tax rates.
. An income tax benefit of $20 million to reverse the sequestration fee
applied to a portion of accumulated minimum tax credits in the 2017
financial statements. The Internal Revenue Service has since clarified
that refundable minimum tax credits are not subject to sequestration.
. During the fourth quarter of 2018, the Company adopted the Internal
Revenue Service's directive related to the calculation of tax reserves
for variable annuity contracts. As a result of adoption of the
directive, the Company released audit interest accrued for uncertainties
in the calculation of variable annuity tax reserves. The impact on the
Company's financial statements was a benefit of $43 million.
During the second quarter of 2017, the Company agreed to the Internal
Revenue Service's Revenue Agent's Report for its consolidated 2008 and 2009
Federal corporate income tax returns. The impact on the Company's financial
statements and unrecognized tax benefits was a tax benefit of $221 million.
The components of the net deferred income taxes are as follows:
AS OF DECEMBER 31,
-------------------------------------------------------
2018 2017
------------------------- -----------------------------
ASSETS LIABILITIES Assets Liabilities
----------- ------------- ------------- ---------------
(IN MILLIONS)
Compensation and related benefits...................... $ 47 $ -- $ 47 $ --
Net operating loss..................................... 239 -- -- --
Reserves and reinsurance............................... -- 32 -- 83
DAC.................................................... -- 864 -- 821
Unrealized investment gains (losses)................... 123 -- -- 298
Investments............................................ 670 -- -- 997
Tax credits............................................ 314 -- 387 --
Other.................................................. 14 -- 67 --
----------- ------------- ------------- ---------------
Total.................................................. $ 1,407 $ 896 $ 501 $ 2,199
=========== ============= ============= ===============
|
The Company had $314 million and $387 million of AMT credits for the years
ended December 31, 2018 and 2017, respectively, which are expected to be
refunded or utilized against future taxable income.
A reconciliation of unrecognized tax benefits (excluding interest and
penalties) follows:
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
Balance at January 1,.......................... $ 205 $ 444 $ 406
Additions for tax positions of prior years..... 98 28 38
Reductions for tax positions of prior years.... (30) (234) --
Settlements with tax authorities............... -- (33) --
---------- ---------- ----------
Balance at December 31,........................ $ 273 $ 205 $ 444
========== ========== ==========
Unrecognized tax benefits that, if recognized,
would impact the effective rate.............. $ 202 $ 172 $ 329
========== ========== ==========
|
The Company recognizes accrued interest and penalties related to
unrecognized tax benefits in tax expense. Interest and penalties included in
the amounts of unrecognized tax benefits at December 31, 2018 and 2017 were
$41 million and $23 million, respectively. For 2018, 2017 and 2016,
respectively, there were $18 million, $(44) million and $15 million in
interest expense (benefit) related to unrecognized tax benefits.
It is reasonably possible that the total amount of unrecognized tax benefits
will change within the next 12 months due to the conclusion of IRS
proceedings and the addition of new issues for open tax years. The possible
change in the amount of unrecognized tax benefits cannot be estimated at
this time.
As of December 31, 2018, tax years 2010 and subsequent remain subject to
examination by the IRS.
F-70
16)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
AOCI represents cumulative gains (losses) on items that are not reflected in
income (loss). The balances for the past three years follow:
DECEMBER 31,
-------------------------------
2018 2017 2016
---------- --------- --------
(IN MILLIONS)
Unrealized gains (losses) on investments/(1)/ $ (484) $ 581 $ (44)
Defined benefit pension plans/(2)/........... (7) (51) (46)
---------- --------- --------
Total accumulated other comprehensive income
(loss) from continuing operations.......... (491) 530 (90)
---------- --------- --------
Less: Accumulated other comprehensive
(income) loss attributable to
non-controlling interest................... -- 68 86
---------- --------- --------
Accumulated other comprehensive income
(loss) attributable to AXA Equitable....... $ (491) $ 598 $ (4)
========== ========= ========
|
/(1)/2018 includes a $86 million decrease to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
/(2)/2018 includes a $3 million increase to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
The components of OCI for the years ended December 31, 2018, 2017 and 2016,
net of tax, follow:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
---------- -------- ---------
(IN MILLIONS)
Change in net unrealized gains (losses)
on investments:
Net unrealized gains (losses) arising during
the year..................................... $ (1,663) $ 782 $ (178)
(Gains) losses reclassified into net income
(loss) during the year/(1)/.................. (4) 8 2
---------- -------- ---------
Net unrealized gains (losses) on investments.... (1,667) 790 (176)
Adjustments for policyholders' liabilities,
DAC, insurance liability loss recognition
and other..................................... 437 (165) (57)
---------- -------- ---------
Change in unrealized gains (losses), net of
adjustments (net of deferred income tax
expense (benefit) of $(310), $244, and $(97)). (1,230) 625 (233)
---------- -------- ---------
Change in defined benefit plans:
Less: Reclassification adjustments to Net
income (loss) for:/(2)/
Amortization of net (gains) losses included
in net periodic cost....................... (4) (5) (3)
---------- -------- ---------
Change in defined benefit plans (net of
deferred income tax expense (benefit) of $0,
$(2) and $(2))................................ (4) (5) (3)
---------- -------- ---------
Total other comprehensive income (loss), net of
income taxes from continuing operations....... (1,234) 620 (236)
Other comprehensive income (loss) from
discontinued operations, net of income taxes.. -- (18) 17
---------- -------- ---------
Other comprehensive income (loss) attributable
to AXA Equitable.............................. $ (1,234) $ 602 $ (219)
========== ======== =========
|
/(1)/See "Reclassification adjustments" in Note 3. Reclassification amounts
presented net of income tax expense (benefit) of $(1) million, $(5)
million and $(1) million for the years ended December 31, 2018, 2017 and
2016, respectively.
/(2)/These AOCI components are included in the computation of net periodic
costs (see "Employee Benefit Plans" in Note 13). Reclassification
amounts presented net of income tax expense (benefit) of $0 million, $2
million and $2 million for the years ended December 31, 2018, 2017 and
2016, respectively.
Investment gains and losses reclassified from AOCI to net income (loss)
primarily consist of realized gains (losses) on sales and OTTI of AFS
securities and are included in Total investment gains (losses), net on the
consolidated statements of income (loss). Amounts reclassified from AOCI to
Net income (loss) as related to defined benefit plans primarily consist of
amortizations of net (gains) losses and net prior service cost (credit)
recognized as a component of net periodic cost and reported in Compensation
and benefit expenses in the consolidated statements of income (loss).
Amounts presented in the table above are net of tax.
F-71
17)COMMITMENTS AND CONTINGENT LIABILITIES
Litigation
Litigation, regulatory and other loss contingencies arise in the ordinary
course of the Company's activities as a diversified financial services firm.
The Company is a defendant in a number of litigation matters arising from
the conduct of its business. In some of these matters, claimants seek to
recover very large or indeterminate amounts, including compensatory,
punitive, treble and exemplary damages. Modern pleading practice in the U.S.
permits considerable variation in the assertion of monetary damages and
other relief. Claimants are not always required to specify the monetary
damages they seek or they may be required only to state an amount sufficient
to meet a court's jurisdictional requirements. Moreover, some jurisdictions
allow claimants to allege monetary damages that far exceed any reasonably
possible verdict. The variability in pleading requirements and past
experience demonstrates that the monetary and other relief that may be
requested in a lawsuit or claim often bears little relevance to the merits
or potential value of a claim. Litigation against the Company includes a
variety of claims including, among other things, insurers' sales practices,
alleged agent misconduct, alleged failure to properly supervise agents,
contract administration, product design, features and accompanying
disclosure, cost of insurance increases, the use of captive reinsurers,
payments of death benefits and the reporting and escheatment of unclaimed
property, alleged breach of fiduciary duties, alleged mismanagement of
client funds and other matters.
As with other financial services companies, the Company periodically
receives informal and formal requests for information from various state and
federal governmental agencies and self-regulatory organizations in
connection with inquiries and investigations of the products and practices
of the Company or the financial services industry. It is the practice of the
Company to cooperate fully in these matters.
The outcome of a litigation or regulatory matter is difficult to predict and
the amount or range of potential losses associated with these or other loss
contingencies requires significant management judgment. It is not possible
to predict the ultimate outcome or to provide reasonably possible losses or
ranges of losses for all pending regulatory matters, litigation and other
loss contingencies. While it is possible that an adverse outcome in certain
cases could have a material adverse effect upon the Company's financial
position, based on information currently known, management believes that
neither the outcome of pending litigation and regulatory matters, nor
potential liabilities associated with other loss contingencies, are likely
to have such an effect. However, given the large and indeterminate amounts
sought in certain litigation and the inherent unpredictability of all such
matters, it is possible that an adverse outcome in certain of the Company's
litigation or regulatory matters, or liabilities arising from other loss
contingencies, could, from time to time, have a material adverse effect upon
the Company's results of operations or cash flows in a particular quarterly
or annual period.
For some matters, the Company is able to estimate a possible range of loss.
For such matters in which a loss is probable, an accrual has been made. For
matters where the Company, however, believes a loss is reasonably possible,
but not probable, no accrual is required. For matters for which an accrual
has been made, but there remains a reasonably possible range of loss in
excess of the amounts accrued or for matters where no accrual is required,
the Company develops an estimate of the unaccrued amounts of the reasonably
possible range of losses. As of December 31, 2018, the Company estimates the
aggregate range of reasonably possible losses, in excess of any amounts
accrued for these matters as of such date to be up to approximately $95
million.
For other matters, the Company is currently not able to estimate the
reasonably possible loss or range of loss. The Company is often unable to
estimate the possible loss or range of loss until developments in such
matters have provided sufficient information to support an assessment of the
range of possible loss, such as quantification of a damage demand from
plaintiffs, discovery from plaintiffs and other parties, investigation of
factual allegations, rulings by a court on motions or appeals, analysis by
experts and the progress of settlement discussions. On a quarterly and
annual basis, the Company reviews relevant information with respect to
litigation and regulatory contingencies and updates the Company's accruals,
disclosures and reasonably possible losses or ranges of loss based on such
reviews.
In August 2015, a lawsuit was filed in Connecticut Superior Court, Judicial
Division of New Haven entitled Richard T. O'Donnell, on behalf of himself
and all others similarly situated v. AXA Equitable Life Insurance Company.
This lawsuit is a putative class action on behalf of all persons who
purchased variable annuities from AXA Equitable, which were subsequently
subjected to the volatility management strategy and who suffered injury as a
result thereof. Plaintiff asserts a claim for breach of contract alleging
that AXA Equitable Life implemented the volatility management strategy in
violation of applicable law. In November 2015, the Connecticut Federal
District Court transferred this action to the United States District Court
for the Southern District of New York. In March 2017, the Southern District
of New York granted AXA Equitable Life's motion to dismiss the complaint. In
April 2017, the plaintiff filed a notice of appeal. In April 2018, the
United States Court of Appeals for the Second Circuit reversed the trial
court's decision with instructions to remand the case to Connecticut state
court. In September 2018, the Second Circuit issued its mandate, following
AXA Equitable Life's notification to the court that it would not file a
petition for writ of certiorari. The case was transferred in December 2018
and is pending in Connecticut Superior Court, Judicial District of Stamford.
We are vigorously defending this matter.
In February 2016, a lawsuit was filed in the United States District Court
for the Southern District of New York entitled Brach Family Foundation, Inc.
v. AXA Equitable Life Insurance Company. This lawsuit is a putative class
action brought on behalf of all owners of universal life ("UL") policies
subject to AXA Equitable Life's COI rate increase. In early 2016, AXA
Equitable Life raised COI rates for certain UL policies issued
F-72
between 2004 and 2007, which had both issue ages 70 and above and a current
face value amount of $1 million and above. A second putative class action
was filed in Arizona in 2017 and consolidated with the Brach matter. The
current consolidated amended class action complaint alleges the following
claims: breach of contract; misrepresentations by AXA Equitable Life in
violation of Section 4226 of the New York Insurance Law; violations of New
York General Business Law Section 349; and violations of the California
Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs
seek; (a) compensatory damages, costs, and, pre- and post-judgment interest;
(b) with respect to their claim concerning Section 4226, a penalty in the
amount of premiums paid by the plaintiffs and the putative class; and
(c) injunctive relief and attorneys' fees in connection with their statutory
claims. Five other federal actions challenging the COI rate increase are
also pending against AXA Equitable and have been coordinated with the Brach
action for the purposes of pre-trial activities. They contain allegations
similar to those in the Brach action as well as additional allegations for
violations of various states' consumer protection statutes and common law
fraud. Two actions are also pending against AXA Equitable in New York state
court. AXA Equitable is vigorously defending each of these matters.
Leases
The Company has entered into operating leases for office space and certain
other assets, principally information technology equipment and office
furniture and equipment. Future minimum payments under non-cancelable
operating leases for 2019 and the four successive years are $81 million, $74
million, $69 million, $67 million, $63 million and $66 million thereafter.
Minimum future sublease rental income on these non-cancelable operating
leases for 2019 and the four successive years is $12 million, $12 million,
$12 million, $12 million, $12 million and $0 million thereafter.
Rent expense, which is amortized on a straight-line basis over the life of
the lease, was $82 million, $78 million, $72 million, respectively, for the
years ended December 31, 2018, 2017 and 2016, net of sublease income of $12
million, $16 million, $13 million, respectively, for the years ended
December 31, 2018, 2017 and 2016.
Obligations under Funding Agreements
Entering into FHLBNY membership, borrowings and funding agreements requires
the ownership of FHLBNY stock and the pledge of assets as collateral. AXA
Equitable has purchased FHLBNY stock of $190 million and pledged collateral
with a carrying value of $6.1 billion, as of December 31, 2018. AXA
Equitable issues short-term funding agreements to the FHLBNY and uses the
funds for asset liability and cash management purposes. AXA Equitable issues
long-term funding agreements to the FHLBNY and uses the funds for spread
lending purposes. Funding agreements are reported in Policyholders' account
balances in the consolidated balance sheets. For other instruments used for
asset/liability and cash management purposes, see "Derivative and offsetting
assets and liabilities" included in Note 3. The table below summarizes the
Company's activity of funding agreements with the FHLBNY.
OUTSTANDING REPAID
BALANCE AT END MATURITY OF ISSUED DURING DURING THE
OF PERIOD OUTSTANDING BALANCE THE PERIOD PERIOD
-------------- ------------------------ ------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Short-term FHLBNY funding agreements......... $ 1,490 Less than one month $ 7,980 $ 6,990
Long-term FHLBNY funding agreements.......... 1,621 Less than four years -- --
98 Less than five years -- --
781 Greater than five years -- --
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 -- --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2018/(1)/..................... $ 3,990 $ 7,980 $ 6,990
============== ============= ==========
December 31, 2017:
Short-term FHLBNY funding agreements......... $ 500 Less than one month $ 6,000 $ 6,000
Long-term FHLBNY funding agreements.......... 1,244 Less than four years 324
377 Less than five years 303
879 Greater than five years 135
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 762 $ --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2017/(1)/..................... $ 3,000 $ 6,762 $ 6,000
============== ============= ==========
|
/(1)/The $11 million and $14 million difference between the funding
agreements carrying value shown in fair value table for 2018 and 2017,
respectively, reflects the remaining amortization of a hedge implemented
and closed, which locked in the funding agreements borrowing rates.
F-73
Guarantees and Other Commitments
The Company provides certain guarantees or commitments to affiliates and
others. At December 31, 2018, these arrangements include commitments by the
Company to provide equity financing of $927 million (including $280 million
with affiliates and $12 million on consolidated VIEs) to certain limited
partnerships and real estate joint ventures under certain conditions.
Management believes the Company will not incur material losses as a result
of these commitments.
AXA Equitable is the obligor under certain structured settlement agreements
it had entered into with unaffiliated insurance companies and beneficiaries.
To satisfy its obligations under these agreements, AXA Equitable owns single
premium annuities issued by previously wholly owned life insurance
subsidiaries. AXA Equitable has directed payment under these annuities to be
made directly to the beneficiaries under the structured settlement
agreements. A contingent liability exists with respect to these agreements
should the previously wholly owned subsidiaries be unable to meet their
obligations. Management believes the need for AXA Equitable to satisfy those
obligations is remote.
The Company had $18 million of undrawn letters of credit related to
reinsurance at December 31, 2018. The Company had $606 million of
commitments under existing mortgage loan agreements at December 31, 2018.
Pursuant to certain assumption agreements (the "Assumption Agreements"), AXA
Financial legally assumed primary liability from AXA Equitable for all
current and future liabilities of AXA Equitable under certain employee
benefit plans that provide participants with medical, life insurance and
deferred compensation benefits as well as under the AXA Equitable Retirement
plan, a frozen qualified pension plan. AXA Equitable remains secondarily
liable for its obligations under these plans and would recognize such
liabilities in the event AXA Financial does not perform under the terms of
the Assumption Agreements. On October 1, 2018, AXA Financial merged with and
into its direct parent, Holdings, with Holdings continuing as the surviving
entity. See Note 1 for further information.
18)INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
For 2018, 2017 and 2016, respectively, AXA Equitable's statutory net income
(loss) totaled $3,120 million, $748 million and $679 million. Statutory
surplus, Capital stock and Asset Valuation Reserve ("AVR") totaled $7.9
billion and $8.7 billion at December 31, 2018 and 2017, respectively. At
December 31, 2018, AXA Equitable, in accordance with various government and
state regulations, had $55 million of securities on deposit with such
government or state agencies.
In 2018, AXA Equitable Life paid to its direct parent which subsequently
distributed such amount to Holdings an ordinary shareholder dividend of $1.1
billion. Also in 2018, AXA Equitable Life transferred its interests in ABLP,
AB Holding and the General Partner to Alpha Units Holdings, Inc., a newly
formed subsidiary, and distributed the shares of that subsidiary to its
direct parent which subsequently distributed such shares to Holdings (the
"AB Ownership Transfer"). The AB Ownership transfer was considered an
extraordinary dividend of $1.7 billion representing the equity value of
Alpha Units Holdings, Inc. In connection with the AB Ownership Transfer, AXA
Equitable Life paid an extraordinary cash dividend of $572 million and
issued a surplus note to Holdings in the same amount. The surplus note was
repaid on March 5, 2019.
In 2017, AXA Equitable Life did not pay shareholder dividends and in 2016,
AXA Equitable paid $1.1 billion in shareholder dividends.
Dividend Restrictions
As a domestic insurance subsidiary regulated by the insurance laws of New
York State, AXA Equitable Life, is subject to restrictions as to the amounts
permitted to be paid as dividends and the amounts of any outstanding surplus
notes permitted to be repaid to Holdings.
New York State insurance law provides that a stock life insurer may not,
without prior approval of the New York State Department of Financial
Services ("NYDFS"), pay a dividend to its stockholders exceeding an amount
calculated under one of two standards (the "Standards"). The first standard
allows payment of an ordinary dividend out of the insurer's earned surplus
(as reported on the insurer's most recent annual statement) up to a limit
calculated pursuant to a statutory formula, provided that the NYDFS is given
notice and opportunity to disapprove the dividend if certain qualitative
tests are not met (the "Earned Surplus Standard"). The second standard
allows payment of an ordinary dividend up to a limit calculated pursuant to
a different statutory formula without regard to the insurer's earned
surplus. Dividends exceeding these prescribed limits require the insurer to
file a notice of its intent to declare the dividends with the NYDFS and
prior approval or non-disapproval from the NYDFS.
In applying the Standards, AXA Equitable Life could pay ordinary dividends
up to approximately $1.0 billion during 2019 or, if the amount under the
Earned Surplus Standard was limited to the amount of AXA Equitable Life's
positive unassigned funds as reported on its 2019 annual statement, $2.1
billion. However, in connection with the AB Ownership Transfer, AXA
Equitable Life agreed with the NYDFS that it would not seek a dividend of
greater than $1.0 billion under the Earned Surplus Standard during 2019.
F-74
Prescribed and Permitted Accounting Practices
At December 31, 2018 and for the year then ended, there were no differences
in net income (loss) and capital and surplus resulting from practices
prescribed and permitted by NYDFS and those prescribed by NAIC Accounting
Practices and Procedures effective at December 31, 2018.
The Company cedes a portion of their statutory reserves to EQ AZ Life Re, a
captive reinsurer, as part of the Company's capital management strategy. EQ
AZ Life Re prepares financial statements in a special purpose framework for
statutory reporting.
Differences between Statutory Accounting Principles and U.S. GAAP
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from U.S. GAAP. The differences between statutory surplus and
capital stock determined in accordance with Statutory Accounting Principles
("SAP") and total equity under GAAP are primarily: (a) the inclusion in SAP
of an AVR intended to stabilize surplus from fluctuations in the value of
the investment portfolio; (b) future policy benefits and policyholders'
account balances under SAP differ from U.S. GAAP due to differences between
actuarial assumptions and reserving methodologies; (c) certain policy
acquisition costs are expensed under SAP but deferred under U.S. GAAP and
amortized over future periods to achieve a matching of revenues and
expenses; (d) under SAP, Federal income taxes are provided on the basis of
amounts currently payable with limited recognition of deferred tax assets
while under U.S. GAAP, deferred taxes are recorded for temporary differences
between the financial statements and tax basis of assets and liabilities
where the probability of realization is reasonably assured; (e) the
valuation of assets under SAP and U.S. GAAP differ due to different
investment valuation and depreciation methodologies, as well as the deferral
of interest-related realized capital gains and losses on fixed income
investments; (f) the valuation of the investment in AB and AB Holding under
SAP reflected a portion of the market value appreciation rather than the
equity in the underlying net assets as required under U.S. GAAP;
(g) reporting the surplus notes as a component of surplus in SAP but as a
liability in U.S. GAAP; (h) computer software development costs are
capitalized under U.S. GAAP but expensed under SAP; (i) certain assets,
primarily prepaid assets, are not admissible under SAP but are admissible
under U.S. GAAP, (j) the fair valuing of all acquired assets and liabilities
including intangible assets are required for U.S. GAAP purchase accounting
and (k) cost of reinsurance which is recognized as expense under SAP and
amortized over the life of the underlying reinsured policies under U.S. GAAP.
19)DISCONTINUED OPERATIONS
Distribution of AllianceBernstein to Holdings
Effective December 31, 2018, the Company and its subsidiaries transferred
all economic interests in the business of AB to a newly created entity,
Alpha Unit Holdings, LLC ("Alpha"). The Company distributed all equity
interests in Alpha to AXA Equitable Financial Services, LLC, a wholly-owned
subsidiary of Holdings. The AB transfer and subsequent distribution of Alpha
equity interests ("the AB Business Transfer") removed the authority to
control the business of AB and as such AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements
in all periods presented. Prior to the fourth quarter of 2018, the Company
reported the operations of AB as its Investment Management and Research
segment.
In connection with the transfer, the Company paid an extraordinary dividend
in cash to Holdings in the amount of $572 million. The Company also issued a
one-year senior surplus note to Holdings for $572 million that was repaid on
March 5, 2019. See Note 12 for details of the senior surplus note.
Transactions Prior to Distribution
Intercompany transactions prior to the AB Business Transfer between the
Company and AB were eliminated and excluded from the consolidated statements
of income (loss) and consolidated balance sheets.
The table below presents AB's revenues recognized in 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Investment management, advisory and service
fees:
Base fees.................................. $ 2,156 $ 2,025 $ 1,809
Performance-based fees..................... 118 95 33
Research services.......................... 439 450 480
Distribution services...................... 419 412 384
|
F-75
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Other revenues:
Shareholder services....................... $ 76 $ 75 $ 78
Other...................................... 35 42 21
--------- --------- ---------
Total investment management and service fees. $ 3,243 $ 3,099 $ 2,804
========= ========= =========
|
Transactions Ongoing after Distribution
After the AB Business Transfer, services provided by AB will consist
primarily of an investment management service agreement and will be included
in investment expenses and identified as a related party transaction.
Discontinued Operations
The following table presents the amounts related to the Net income (loss) of
AB that has been reflected in Discontinued operations:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
REVENUES
Net derivative gains (losses)................ $ 12 $ (24) $ (16)
Net investment income (loss)................. 24 142 150
Investment gains (losses), net:
Other investment gains (losses), net....... -- -- (2)
--------- --------- ---------
Total investment gains (losses), net...... -- -- (2)
--------- --------- ---------
Investment management and service fees....... 3,243 3,099 2,804
--------- --------- ---------
Total revenues............................ 3,279 3,217 2,936
--------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Compensation and benefits.................... 1,370 1,307 1,231
Commissions and distribution related payments 427 415 372
Interest expense............................. 8 6 3
Other operating costs and expenses........... 727 789 699
--------- --------- ---------
Total benefits and other deductions....... 2,532 2,517 2,305
--------- --------- ---------
Income (loss) from discontinued operations,
before income taxes........................ 747 700 631
Income tax (expense) benefit................. (69) (82) (69)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes................... 678 618 562
Less: Net (income) loss attributable to the
noncontrolling interest.................... (564) (533) (496)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes and
noncontrolling interest.................... $ 114 $ 85 $ 66
========= ========= =========
|
F-76
The following table presents the amounts related to the financial position
of AB as of December 31, 2017. As the Company deconsolidated AB effective
December 31, 2018, amounts related to AB's financial position as of
December 31, 2018 are not included in the Company's consolidated balance
sheet as of that date. The amounts as of December 31, 2017 have been
reflected in either the Assets of disposed subsidiary or Liabilities of
disposed subsidiary, as applicable, in the Company's consolidated balance
sheet:
ASSETS AND LIABILITIES OF DISPOSED SUBSIDIARY
AS OF DECEMBER 31, 2017
------------------------
(IN MILLIONS)
ASSETS
Investments:
Other equity investments............................. $ 87
Trading securities, at fair value.................... 351
Other invested assets................................ 1,291
------------------------
Total investments................................... 1,729
Cash and cash equivalents.............................. 1,009
Cash and securities segregated, at fair value.......... 816
Broker-dealer related receivables...................... 2,158
Intangible assets, net................................. 3,709
Other assets........................................... 414
------------------------
TOTAL ASSETS OF DISPOSED SUBSIDIARY.................. $ 9,835
========================
LIABILITIES
Broker-dealer related payables......................... $ 334
Customer related payables.............................. 2,229
Long-term debt......................................... 566
Current and deferred income taxes...................... 404
Other liabilities...................................... 1,421
------------------------
TOTAL LIABILITIES OF DISPOSED SUBSIDIARY............. $ 4,954
------------------------
Redeemable noncontrolling interest of
disposed subsidiary.................................. 602
|
20)REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these misclassifications were
not material to the financial statements of any period. These have been
corrected in the comparative consolidated statements of cash flows for the
year ended December 31, 2017 contained elsewhere in this filing.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer in the fourth quarter of 2018, AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements.
The financial information for prior periods presented in the consolidated
financial statements have been adjusted to reflect AB as a discontinued
operation.
F-77
Consolidated Financial Statements as of and for the Year Ended December 31,
2017
The following tables present line items in the consolidated financial
statements as of and for the year ended December 31, 2017 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the 2017 Form 10-K. For these items, the
tables detail the amounts as previously reported, the impact upon those line
items due to the revisions, and the amounts as currently revised.
AS OF DECEMBER 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,547 $ -- $ 4,547 $ (55) $ 4,492
--------------- ------------ ----------- --------- -----------
Total Assets.............................. $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ 29,034 -- 29,034 36 29,070
Current and deferred taxes................. 1,973 (404) 1,569 (19) 1,550
--------------- ------------ ----------- --------- -----------
Total Liabilities......................... 205,795 -- 205,795 17 205,812
--------------- ------------ ----------- --------- -----------
EQUITY:
Retained Earnings.......................... 9,010 -- 9,010 (72) 8,938
--------------- ------------ ----------- --------- -----------
AXA Equitable Equity....................... 16,469 -- 16,469 (72) 16,397
--------------- ------------ ----------- --------- -----------
Total Equity............................... 19,564 -- 19,564 (72) 19,492
--------------- ------------ ----------- --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity........ $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------ ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 3,334 $ -- $ -- $ 3,334 $ (40) $ 3,294
Net derivative gains (losses).............. 890 -- 24 914 (20) 894
-------------- ----------- ------------ ----------- --------- ----------
Total revenues............................ 11,733 -- (3,217) 8,516 (60) 8,456
-------------- ----------- ------------ ----------- --------- ----------
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 3,462 -- -- 3,462 11 3,473
Interest credited to policyholder's
account balances.......................... 1,040 -- -- 1,040 (119) 921
Compensation and benefits.................. 1,762 (128) (1,307) 327 -- 327
Commissions and distribution
related payments.......................... 1,486 (443) (415) 628 -- 628
Amortization of deferred policy
acquisition costs......................... 268 578 -- 846 54 900
Other operating costs and expenses......... 1,431 (7) (789) 635 -- 635
-------------- ----------- ------------ ----------- --------- ----------
Total benefits and other deductions....... 9,478 -- (2,517) 6,961 (54) 6,907
|
F-78
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
Income (loss) from continuing operations, before
income taxes...................................... $ 2,255 $ -- $ (700) $ 1,555 $ (6) $ 1,549
Income tax (expense) benefit from
continuing operations............................. 1,139 -- (111) 1,028 182 1,210
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss) from continuing operations........ 3,394 -- (811) 2,583 176 2,759
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss)................................... 3,394 -- (533) 2,861 (17) 2,844
------------- ------------ ------------ ----------- ---------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO AXA EQUITABLE..... $ 2,860 $ -- $ -- $ 2,860 $ (17) $ 2,843
============= ============ ============ =========== ========== ==========
|
YEAR ENDED DECEMBER 31, 2017
--------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ------------- --------- -------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)............................ $ 3,394 $ (533) $ 2,861 $ (17) $ 2,844
Change in unrealized gains (losses), net of
reclassification adjustment................ 563 -- 563 21 584
Other comprehensive income................... 599 (18) 581 21 602
--------------- ------------ ------------- --------- -------------
Comprehensive income (loss).................. 3,993 (551) 3,442 4 3,446
--------------- ------------ ------------- --------- -------------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ 3,441 $ -- $ 3,441 $ 4 $ 3,445
=============== ============ ============= ========= =============
|
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year................. $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to AXA Equitable...... 2,860 -- 2,860 (17) 2,843
------------- ------------- ----------- --------- ----------
Retained earnings, end of period..................... 9,010 -- 9,010 (72) 8,938
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, beginning
of year............................................. 17 -- 17 (21) (4)
Other comprehensive income (loss).................... 581 -- 581 21 602
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, end of year.. 598 -- 598 -- 598
------------- ------------- ----------- --------- ----------
Total AXA Equitable's equity, end of year............ 16,469 -- 16,469 (72) 16,397
TOTAL EQUITY, END OF YEAR.............................. $ 19,564 $ -- $ 19,564 $ (72) $ 19,492
============= ============= =========== ========= ==========
|
F-79
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 3,394 $ -- $ (17) $ 3,377
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,040 -- (119) 921
Policy charges and fee income......................... (3,334) -- 40 (3,294)
Net derivative (gains) losses......................... (890) -- 20 (870)
Amortization and depreciation......................... (136) 907 54 825
Amortization of deferred sales commission............. 32 (32) -- --
Amortization of other intangibles..................... 31 (31) -- --
Equity (income) loss from limited partnerships........ -- (157) -- (157)
Distributions from joint ventures and
limited partnerships................................ 140 (140) -- --
Changes in:
Reinsurance recoverable............................. (416) -- (602) (1,018)
Deferred policy acquisition costs................... 268 (268) -- --
Capitalization of deferred policy
acquisition costs................................. -- (578) -- (578)
Future policy benefits.............................. 1,511 -- (322) 1,189
Current and deferred income taxes................... (664) -- (510) (1,174)
Other, net.......................................... 189 297 -- 486
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ 1,077 $ (2) $ (1,456) $ (381)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ $ -- $ 2,204 $ -- $ 2,204
Payment for the purchase/origination of:
Short-term investments................................ -- (2,456) -- (2,456)
Change in short-term investments....................... (264) 254 10 --
Other, net............................................. 238 -- 84 322
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (9,010) $ 2 $ 94 $ (8,914)
------------ ----------------- --------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.............................................. $ 9,882 $ -- $ (548) $ 9,334
Withdrawals........................................... (5,926) -- 2,000 (3,926)
Transfer (to) from Separate Accounts.................. 1,656 -- (90) 1,566
------------ ----------------- --------- -----------
Net cash provided by (used in) financing activities.... $ 8,370 $ -- $ 1,362 $ 9,732
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $533 million in 2017 of the discontinued
operations that are not included in net income (loss) in the
Consolidated Statements of Income (Loss).
Consolidated Financial Statements for the Year Ended December 31, 2016
The following table presents line items for the consolidated financial
statements for the year ended December 31, 2016 that have been affected by
the aforementioned adjustments and revisions. This information has been
corrected from the information previously presented and restated in the 2017
Form 10-K. For these items, the table details the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, adjustments for the discontinued
operation, and revisions and the amounts as currently revised.
F-80
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------- ------------ ----------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income......... $ 3,344 $ -- $ -- $ 3,344 $ (33) $ 3,311
Net derivative gains (losses)......... (1,211) -- 16 (1,195) (126) (1,321)
-------------- ----------- ------------- ------------ ----------- -----------
Total revenues....................... 9,138 -- (2,936) 6,202 (159) 6,043
BENEFITS AND OTHER DEDUCTIONS:
Interest credited to Policyholder's
account balances..................... 1,029 -- -- 1,029 (124) 905
Compensation and benefits............. 1,723 (128) (1,231) 364 -- 364
Commissions and distribution
related payments..................... 1,467 (460) (372) 635 -- 635
Amortization of deferred policy
acquisition costs.................... 52 594 -- 646 (4) 642
Other operating costs and expenses.... 1,458 (6) (699) 753 -- 753
-------------- ----------- ------------- ------------ ----------- -----------
Total benefits and other deductions.. 8,516 -- (2,305) 6,211 (128) 6,083
Income (loss) from continuing
operations, before income taxes....... 622 -- (631) (9) (31) (40)
Income tax (expense) benefit from
continuing operations................. 84 -- 69 153 11 164
Net income (loss) from
continuing operations................. 706 -- (562) 144 (20) 124
Net income (loss)....................... 706 -- (496) 210 (20) 190
-------------- ----------- ------------- ------------ ----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE......................... $ 210 $ -- $ -- $ 210 $ (20) $ 190
============== =========== ============= ============ =========== ===========
|
YEAR ENDED DECEMBER 31, 2016
-----------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- --------------- ------------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)...................................... $ 706 $ (496) $ 210 $ (20) $ 190
--------------- --------------- ------------- ---------- ----------
Change in unrealized gains (losses), net of
reclassification adjustment.......................... (194) -- (194) (21) (215)
Other comprehensive income............................. (215) 17 (198) (21) (219)
Comprehensive income (loss)............................ 491 (479) 12 (41) (29)
--------------- --------------- ------------- ---------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE........................................ $ 12 $ -- $ 12 $ (41) $ (29)
=============== =============== ============= ========== ==========
|
F-81
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year......... $ 6,990 $ -- $ 6,990 $ (35) $ 6,955
Net income (loss) attributable to
AXA Equitable............................... 210 -- 210 (20) 190
-------------- ------------ ----------- --------- -----------
Retained earnings, end of period............. 6,150 -- 6,150 (55) 6,095
-------------- ------------ ----------- --------- -----------
Other comprehensive income (loss)............ (198) -- (198) (21) (219)
-------------- ------------ ----------- --------- -----------
Accumulated other comprehensive income, end
of period................................... 17 -- 17 (21) (4)
-------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period.. $ 11,508 $ -- $ 11,508 $ (76) $ 11,432
============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2016
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 706 $ -- $ (20) $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,029 -- (124) 905
Policy charges and fee income......................... (3,344) -- 33 (3,311)
Net derivative (gains) losses......................... 1,211 -- 126 1,337
Amortization and depreciation......................... -- 618 (4) 614
Amortization of deferred sales commission............. 41 (41) -- --
Other depreciation and amortization................... (98) 98 -- --
Amortization of other intangibles..................... 29 (29) -- --
Equity (income) loss from limited partnerships........ -- (91) -- (91)
Return of real estate joint venture and
limited partnerships................................ 126 (126) -- --
Changes in:
Deferred policy acquisition costs................... 52 (52) -- --
Capitalization of deferred policy
acquisition costs................................. -- (594) -- (594)
Current and deferred income taxes................... (742) -- (11) (753)
Other, net.......................................... (161) 217 -- 56
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ (461) $ -- $ -- $ (461)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ -- 2,984 -- 2,984
Payment for the purchase/origination of:...............
Short-term investments................................ -- (3,187) -- (3,187)
Change in short-term investments....................... (205) 205 -- --
Other, net............................................. 409 (2) -- 407
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (5,358) $ -- $ -- $ (5,358)
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $496 million in 2016 of the discontinued
operations that are not included in Net income (loss) in the
Consolidated Statements of Income (Loss).
F-82
21)QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The unaudited quarterly financial information for the years ended
December 31, 2018 and 2017 are summarized in the table below:
THREE MONTHS ENDED
--------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
--------- ---------- ------------- ------------
(IN MILLIONS)
2018
Total revenues............................... $ 1,139 $ 1,621 $ 27 $ 4,164
Total benefits and other deductions.......... 1,512 4,278 763 1,879
--------- ---------- ------------- ------------
Net income (loss)............................ $ (264) $ (2,084) $ (509) $ 1,936
========= ========== ============= ============
2017
Total revenues............................... $ 1,554 $ 3,763 $ 1,621 $ 1,518
Total benefits and other deductions.......... 1,921 1,858 1,708 1,420
--------- ---------- ------------- ------------
Net income (loss)............................ $ (201) $ 1,508 $ 23 $ 1,515
========= ========== ============= ============
|
Net Income (Loss) Volatility
With the exception of the GMxB Unwind during the second quarter of 2018 that
is further described in Note 12, the fluctuation in the Company's quarterly
Net income (loss) during 2018 and 2017 is not due to any specific events or
transactions, but instead is driven primarily by the impact of changes in
market conditions on the Company's liabilities associated with GMxB features
embedded in its variable annuity products, partially offset by derivatives
the Company has in place to mitigate the movement in those liabilities. As
those derivatives do not qualify for hedge accounting treatment, volatility
in Net income (loss) result from the changes in value of the derivatives
being recognized in the period in which they occur, with offsetting changes
in the liabilities being partially recognized in the current period.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company revised the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Revisions of Prior Period Interim Consolidated Financial Statements
The Company's third quarter 2018 financial statements were revised to
reflect the correction of errors identified by the Company in its previously
issued financial statements. The impact of these errors was not considered
to be material. However, in order to improve the consistency and
comparability of the financial statements, management revised the Company's
consolidated financial statements for the three and six months ended
March 31, 2018 and June 30, 2018, respectively, as well as the three and six
months ended March 31, 2017 and June 30, 2017.
In addition, during the fourth quarter of 2018, the Company identified
certain cash flows that were incorrectly classified in the Company's
historical consolidated statements of cash flows. The Company has determined
that these mis-classifications were not material to the financial statements
for any period. These misclassifications will be corrected in the
comparative consolidated statements of cash flows for the three, six and
nine months ended March 31, 2019, June 30, 2019 and September 30, 2019 that
will appear in the Company's first, second and third quarter 2019 Form 10-Q
filings, respectively.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer effective as of December 31, 2018, AB's operations are now
reflected as Discontinued operations in the Company's consolidated financial
statements. The financial information for prior periods presented in the
consolidated financial statements have been adjusted to reflect AB as
Discontinued operations.
F-83
Revision of Consolidated Financial Statements as of and for the Three Months
Ended March 31, 2018
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 2018 that have
been affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... 4,826 -- 4,826 (119) 4,707
-------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,374 $ -- $ 28,374 $ (10) $ 28,364
Current and deferred taxes................. 1,728 (432) 1,296 (38) 1,258
Other liabilities.......................... 3,041 (1,941) 1,100 70 1,170
-------------- -------------- ----------- --------- -----------
Total Liabilities.......................... $ 202,767 $ -- $ 202,767 $ 22 $ 202,789
-------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 8,824 $ -- $ 8,824 $ (141) $ 8,683
AXA Equitable Equity....................... 15,545 -- 15,545 (141) 15,404
-------------- -------------- ----------- --------- -----------
Total Equity............................... 18,633 -- 18,633 (141) 18,492
-------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ------------ ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 869 $ -- $ -- $ 869 $ (8) $ 861
Net derivative gains (losses).............. (777) -- (2) (779) (38) (817)
------------- ------------ ------------ ------------ ---------- ----------
Total Revenues........................... 2,031 -- (846) 1,185 (46) 1,139
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 489 -- -- 489 (9) 480
Interest credited to policyholders'
account balances......................... 338 -- -- 338 (83) 255
Compensation and benefits.................. 456 (33) (344) 79 70 149
Commissions and distribution
related payments......................... 371 (101) (110) 160 -- 160
Amortization of deferred policy
acquisition costs........................ 10 135 -- 145 64 209
Other operating costs and expenses......... 440 (1) (189) 250 -- 250
------------- ------------ ------------ ------------ ---------- ----------
Total benefits and other deductions...... 2,115 -- (645) 1,470 42 1,512
------------- ------------ ------------ ------------ ---------- ----------
|
F-84
THREE MONTHS ENDED MARCH 31, 2018
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- ----------
(IN MILLIONS)
Income (loss) from continuing operations,
before income taxes....................... $ (84) $ -- $ (201) $ (285) (88) (373)
Income tax (expense) benefit from
continuing operations..................... 44 -- 17 61 19 80
------------ ---------- ----------- ----------- -------- ----------
Net income (loss) from
continuing operations..................... (40) -- (184) (224) (69) (293)
------------ ---------- ----------- ----------- -------- ----------
Net income (loss).......................... (40) -- (155) (195) (69) (264)
------------ ---------- ----------- ----------- -------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE............................. $ (194) $ -- $ -- $ (194) $ (69) $ (263)
============ ========== =========== =========== ======== ==========
|
THREE MONTHS ENDED MARCH 31, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- ----------
(IN MILLIONS)
STATEMENTS OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)............................. $ (40) $ (155) $ (195) $ (69) $ (264)
------------- ------------ ----------- --------- ----------
Comprehensive income (loss)................... $ (789) $ (162) $ (951) $ (69) $ (1,020)
------------- ------------ ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE................................ $ (950) $ -- $ (950) $ (69) $ (1,019)
============= ============ =========== ========= ==========
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year.......... $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
------------- ------------ ----------- --------- ----------
Net income (loss)............................. (194) -- (194) (69) (263)
------------- ------------ ----------- --------- ----------
Retained earnings, end of period.............. 8,824 -- 8,824 (141) 8,683
Total AXA Equitable's equity, end of period... 15,545 15,545 (141) 15,404
------------- ------------ ----------- --------- ----------
TOTAL EQUITY, END OF PERIOD.................. $ 18,633 $ -- $ 18,633 $ (141) $ 18,492
============= ============ =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2018
------------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ------------------ ------------ -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/.......................... $ (40) $ -- $ (69) $ (109)
Adjustments to reconcile net income (loss) to
net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances........................... 338 -- (83) 255
Policy charges and fee income................ (869) -- 8 (861)
Net derivative (gains) losses................ 777 -- 38 815
Amortization and depreciation................ -- 137 64 201
Amortization of deferred sales commission.... 7 (7) -- --
Other depreciation and amortization.......... (23) 23 -- --
Amortization of other Intangibles............ 8 (8) -- --
Equity (income) loss from
limited partnerships....................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships....................... 25 (25) -- --
|
F-85
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ------------------ --------- ----------
(IN MILLIONS)
Changes in:
Reinsurance recoverable.................... $ 2 $ -- $ (149) $ (147)
Deferred policy acquisition costs.......... 10 (10) -- --
Capitalization of deferred policy
acquisition costs........................ -- (135) -- (135)
Future policy benefits..................... (191) -- (7) (198)
Current and deferred income taxes.......... (52) -- 132 80
Other, net................................. (122) 64 70 12
------------ ------------------ --------- ----------
Net cash provided by (used in)
operating activities....................... $ (21) $ -- $ 4 $ (17)
------------ ------------------ --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................. $ 1,606 $ -- $ 77 $ 1,683
Real estate held for the production
of income................................ -- 140 -- 140
Short-term investments..................... -- 688 -- 688
Other...................................... 54 (140) -- (86)
Payment for the purchase/origination of:
Short-term investments..................... -- (377) -- (377)
Cash settlements related to
derivative instruments..................... (14) -- (489) (503)
Change in short-term investments............ 396 (311) (85) --
Other, net.................................. (560) -- 153 (407)
------------ ------------------ --------- ----------
Net cash provided by (used in)
investing activities........................ $ (639) $ -- $ (344) $ (983)
------------ ------------------ --------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,366 $ -- $ (468) $ 1,898
Withdrawals................................ (1,322) -- 241 (1,081)
Transfer (to) from Separate Accounts....... (115) -- 567 452
------------ ------------------ --------- ----------
Net cash provided by (used in)
financing activities........................ $ 1,040 $ -- $ 340 $ 1,380
------------ ------------------ --------- ----------
|
/(1)/Net income (loss) includes $154 million in the three months ended
March 31, 2018 of the discontinued operations that are not included in
net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of June 30, 2018 and for the three and six months ended
June 30, 2018 that have been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
June 30, 2018 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables.
AS OF JUNE 30, 2018
------------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
----------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,786 $ -- $ 4,786 $ (76) $ 4,710
Amounts due from reinsurers................ 3,088 -- 3,088 (9) 3,079
Current and deferred taxes................. 159 422 581 3 584
----------- ----------- ------------ --------- -----------
Total Assets............................. $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
----------- ----------- ------------ --------- -----------
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities............... $ 28,122 $ -- $ 28,122 $ (64) $ 28,058
----------- ----------- ------------ --------- -----------
Total Liabilities........................ $ 202,196 $ -- $ 202,196 $ (64) $ 202,132
----------- ----------- ------------ --------- -----------
|
F-86
AS OF JUNE 30, 2018
-----------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
---------- ------------ ------------ --------- -----------
(IN MILLIONS)
EQUITY:
Retained Earnings.......................... $ 6,617 $ -- $ 6,617 $ (18) $ 6,599
AXA Equitable Equity....................... 13,925 -- 13,925 (18) 13,907
---------- ------------ ------------ --------- -----------
Total Equity............................. 16,964 -- 16,964 (18) 16,946
---------- ------------ ------------ --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity......... $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
========== ============ ============ ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2018
----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 904 $ -- $ -- $ 904 $ (21) $ 883
Net derivative gains (losses).............. (312) -- -- (312) 27 (285)
------------- ---------- ----------- ----------- -------- -----------
Total revenues........................... 2,439 -- (824) 1,615 6 1,621
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,339 -- -- 1,339 (38) 1,301
Compensation and benefits.................. 466 (32) (360) 74 -- 74
Commissions and distribution
related payments......................... 377 (112) (106) 159 -- 159
Amortization of deferred policy
acquisition costs........................ 31 145 1 177 5 182
Other operating costs and expenses......... 2,486 (1) (172) 2,313 -- 2,313
------------- ---------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 4,950 -- (639) 4,311 (33) 4,278
------------- ---------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,511) -- (185) (2,696) 39 (2,657)
Income tax (expense) benefit from
continuing operations...................... 553 -- 8 561 (9) 552
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (1,958) -- (177) (2,135) 30 (2,105)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss)........................... (1,958) -- (156) (2,114) 30 (2,084)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,114) $ -- $ -- $ (2,114) $ 30 $ (2,084)
============= ========== =========== =========== ======== ===========
|
THREE MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (1,958) $ (156) $ (2,114) $ 30 $ (2,084)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss)................ (2,278) (142) (2,420) 30 (2,390)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (2,420) $ -- $ (2,420) $ 30 $ (2,390)
============= =========== =========== ======== ===========
|
F-87
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,773 $ -- $ -- $ 1,773 $ (29) $ 1,744
Net derivative gains (losses).............. (1,172) -- (2) (1,174) 72 (1,102)
------------- ----------- ----------- ----------- -------- -----------
Total revenues........................... 4,387 -- (1,670) 2,717 43 2,760
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,828 -- -- 1,828 (47) 1,781
Compensation and benefits.................. 992 (65) (704) 223 -- 223
Commissions and distribution
related payments......................... 748 (213) (216) 319 -- 319
Amortization of deferred policy
acquisition costs........................ 89 280 1 370 21 391
Other operating costs and expenses......... 2,926 (2) (361) 2,563 -- 2,563
------------- ----------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 7,100 -- (1,284) 5,816 (26) 5,790
------------- ----------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,713) -- (386) (3,099) 69 (3,030)
------------- ----------- ----------- ----------- -------- -----------
Income tax (expense) benefit from
continuing operations...................... 622 -- 25 647 (15) 632
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (2,091) -- (361) (2,452) 54 (2,398)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss)........................... (2,091) -- (311) (2,402) 54 (2,348)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,401) $ -- $ -- $ (2,401) $ 54 $ (2,347)
============= =========== =========== =========== ======== ===========
|
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (2,091) $ (311) $ (2,402) $ 54 $ (2,348)
------------- ----------- ------------- --------- -----------
Comprehensive income (loss)................ (3,160) (305) (3,465) 54 (3,411)
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (3,463) $ -- $ (3,463) $ 54 $ (3,409)
============= =========== ============= ========= ===========
|
F-88
SIX MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
Net income (loss) attributable to
AXA Equitable.............................. (2,401) -- (2,401) 54 (2,347)
------------- ------------ ----------- --------- -----------
Retained earnings, end of period............ 6,617 -- 6,617 (18) 6,599
------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period. 13,925 -- 13,925 (18) 13,907
------------- ------------ ----------- --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 16,964 $ -- $ 16,964 $ (18) $ 16,946
============= ============ =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ----------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (2,091) $ -- $ 54 $ (2,037)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,773) -- 29 (1,744)
Net derivative (gains) losses............... 1,172 -- (72) 1,100
Amortization and depreciation............... -- 335 21 356
Amortization of deferred sales commission... 13 (13) -- --
Other depreciation and amortization......... (45) 45 -- --
Equity (income) loss from
limited partnerships...................... -- (60) -- (60)
Distributions from joint ventures and
limited partnerships...................... 44 (44) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:
Reinsurance recoverable................... 15 -- 166 181
Deferred policy acquisition costs......... 89 (89) -- --
Capitalization of deferred policy
acquisition costs....................... -- (280) -- (280)
Future policy benefits.................... 396 -- (554) (158)
Current and deferred income taxes......... (645) -- 167 (478)
Other, net................................ 416 104 (304) 216
----------- ------------ ----------- ------------
Net cash provided by (used in)
operating activities........................ $ 1,190 $ (2) $ (319) $ 869
----------- ------------ ----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities.................. $ 4,843 $ -- $ 24 $ 4,867
Real estate joint ventures.................. -- 140 -- 140
Short-term investments...................... -- 1,331 (24) 1,307
Other....................................... 260 (140) -- 120
Payment for the purchase/origination of:
Short-term investments...................... -- (1,081) 205 (876)
Cash settlements related to
derivative instruments...................... (267) -- (489) (756)
Change in short-term investments............. 248 (248) -- --
Other, net................................... 379 -- 11 390
----------- ------------ ----------- ------------
Net cash provided by (used in)
investing activities......................... $ (1,605) $ 2 $ (273) $ (1,876)
----------- ------------ ----------- ------------
|
F-89
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 5,227 $ -- $ (1,107) $ 4,120
Withdrawals............................... (2,611) -- 480 (2,131)
Transfer (to) from Separate Accounts...... (305) -- 1,219 914
|
/(1)/Net income (loss) includes $310 million in the six months ended June 30,
2018 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated statement of
cash flows for the nine months ended September 30, 2018 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's September 30, 2018 Form
10-Q. For these items, the tables detail the amounts as previously reported
and the impact upon those line items due to the reclassifications to conform
to the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables. Tables for the
other consolidated financial statements as of or for the three and nine
months ended September 30, 2018 are not presented as these revisions were
already reflected in the Company's September 30, 2018 Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2018
---------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ------------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 258 $ -- $ 258
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (60) 60 -- --
Equity (income) loss from
limited partnerships...................... -- (83) -- (83)
Distribution from joint ventures and
limited partnerships...................... 63 (63) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:.................................
Reinsurance recoverable................... 20 -- 86 106
Deferred policy acquisition costs......... (129) 129 -- --
Capitalization of deferred policy
acquisition costs....................... -- (432) -- (432)
Future policy benefits.................... (58) -- (541) (599)
Current and deferred income taxes......... (264) -- (400) (664)
Other, net................................ 123 146 179 448
----------- ------------------- ---------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES.................................. $ 1,614 $ (2) $ (502) $ 1,110
----------- ------------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................ $ 6,913 $ -- $ 77 $ 6,990
Real estate joint ventures................ -- 140 -- 140
Short-term investments.................... -- 1,806 -- 1,806
Other..................................... 344 (140) -- 204
Short-term investments.................... -- (1,530) 204 (1,326)
Cash settlements related to
derivative instruments...................... (584) -- (492) (1,076)
Change in short-term investments............. 350 (274) (77) (1)
Other, net................................... 305 -- (19) 286
----------- ------------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (2,990) $ 2 $ (307) $ (3,295)
----------- ------------------- ---------- -----------
|
F-90
NINE MONTHS ENDED SEPTEMBER 30, 2018
----------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- -------------------- ---------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 7,852 $ -- $ (1,668) $ 6,184
Withdrawals............................... (4,014) -- 760 (3,254)
Transfer (to) from Separate Accounts...... (338) -- 1,717 1,379
------------- -------------------- ---------- ----------
Net cash provided by (used in)
financing activities....................... $ 1,293 $ -- $ 809 $ 2,102
------------- -------------------- ---------- ----------
|
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 20 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------- ------------ --------- ----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,961 $ -- $ 4,961 $ (64) $ 4,897
-------------- ------------- ------------ --------- ----------
Total Assets.............................. $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,691 $ -- $ 28,691 $ 66 $ 28,757
Current and deferred taxes................. 2,726 (562) 2,164 (46) 2,118
-------------- ------------- ------------ --------- ----------
Total Liabilities......................... $ 195,091 $ -- $ 195,091 $ 20 $ 195,111
-------------- ------------- ------------ --------- ----------
EQUITY:
Retained Earnings.......................... $ 5,978 $ -- $ 5,978 $ (84) $ 5,894
-------------- ------------- ------------ --------- ----------
AXA Equitable Equity....................... 11,459 -- 11,459 (84) 11,375
-------------- ------------- ------------ --------- ----------
Noncontrolling interest.................... 3,046 -- 3,046 -- 3,046
Total Equity............................... 14,505 -- 14,505 (84) 14,421
-------------- ------------- ------------ --------- ----------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY........................ $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ------------ ---------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 852 $ -- $ -- $ 852 $ (22) $ 830
Net derivative gains (losses).............. (362) -- 10 (352) 7 (345)
------------- ----------- ------------- ------------ ---------- ------------
Total revenues........................... 2,314 -- (745) 1,569 (15) 1,554
|
F-91
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ----------- --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 975 -- -- 975 (3) 972
Interest credited to policyholders'
account balances......................... 279 -- -- 279 (30) 249
Compensation and benefits.................. 438 (33) (322) 83 -- 83
Commissions and distribution
related payments......................... 382 (114) (96) 172 -- 172
Amortization of deferred policy
acquisition costs........................ 29 148 -- 177 63 240
Other operating costs and expenses......... 381 (1) (179) 201 -- 201
------------- ----------- ------------- ----------- --------- ----------
Total benefits and other deductions...... 2,489 -- (598) 1,891 30 1,921
------------- ----------- ------------- ----------- --------- ----------
Income (loss) from continuing operations,
before income taxes........................ (175) -- (147) (322) (45) (367)
Income tax (expense) benefit from
continuing operations...................... 121 -- 11 132 16 148
------------- ----------- ------------- ----------- --------- ----------
Net income (loss) from
continuing operations...................... (54) -- (136) (190) (29) (219)
------------- ----------- ------------- ----------- --------- ----------
Net income (loss)........................... (54) -- (118) (172) (29) (201)
------------- ----------- ------------- ----------- --------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ (172) $ -- $ -- $ (172) $ (29) $ (201)
============= =========== ============= =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ (54) $ (118) $ (172) $ (29) $ (201)
------------- ------------- ----------- --------- ----------
Change in unrealized gains (losses), net
of reclassification adjustment.......... 92 -- 92 21 113
Total other comprehensive income (loss),
net of income taxes..................... 127 (7) 120 21 141
------------- ------------- ----------- --------- ----------
Comprehensive income (loss)............... 73 (125) (52) (8) (60)
------------- ------------- ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE
TO AXA EQUITABLE........................ $ (52) $ -- $ (52) $ (8) $ (60)
============= ============= =========== ========= ==========
|
F-92
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to
AXA Equitable.............................. (172) -- (172) (29) (201)
------------- ------------ ------------ --------- -----------
Retained earnings, end of period............ 5,978 -- 5,978 (84) 5,894
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
beginning of year.......................... 17 -- 17 (21) (4)
Other comprehensive income (loss)........... 120 -- 120 21 141
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
end of period.............................. 137 -- 137 -- 137
------------- ------------ ------------ --------- -----------
Total AXA Equitable's equity, end of period. 11,459 -- 11,459 (84) 11,375
------------- ------------ ------------ --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 14,505 $ -- $ 14,505 $ (84) $ 14,421
============= ============ ============ ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (54) $ -- $ (29) $ (83)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances.......................... 279 -- (30) 249
Policy charges and fee income............... (852) -- 22 (830)
Net derivative (gains) losses............... 362 -- (7) 355
Amortization and depreciation............... -- 229 63 292
Amortization of deferred sales commission... 9 (9) -- --
Other depreciation and amortization......... 36 (36) -- --
Amortization of other intangibles........... 8 (8) -- --
Equity (income) loss from
limited partnerships...................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships...................... 26 (26) -- --
Changes in: --
Reinsurance recoverable................... (23) -- (173) (196)
Deferred policy acquisition costs......... 29 (29) -- --
Capitalization of deferred policy
acquisition costs....................... -- (148) -- (148)
Future policy benefits.................... 241 -- 17 258
Current and deferred income taxes......... (188) -- (6) (194)
Other, net................................ 151 65 -- 216
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES......................... $ 18 $ (1) $ (143) $ (126)
------------- ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 631 $ -- $ 631
Payment for the purchase/origination of:
Short-term investments...................... -- (376) (289) (665)
Change in short-term investments............. 254 (254) -- --
Other, net................................... 43 -- 100 143
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES......................... $ (2,447) $ 1 $ (189) $ (2,635)
------------- ----------------- --------- -----------
|
F-93
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,240 $ -- $ 269 $ 2,509
Withdrawals................................ (785) -- (157) (942)
Transfer (to) from Separate Accounts....... 176 -- 220 396
------------ -------------- -------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES....................... $ 2,306 $ -- $ 332 $ 2,638
------------ -------------- -------- ----------
|
/(1)/Net income (loss) includes $118 million in the three months ended
March 31, 2017 of the discontinued operations that are not included in
Net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of and for the three and six months ended June 30, 2017 that
have been affected by the revisions. This information has been corrected
from the information previously presented in the Company's June 30, 2018
Form 10-Q. For these items, the tables detail the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, the adjustment for the discontinued
operation, revisions and the amounts as currently revised. Prior period
amounts have been reclassified to conform to current period presentation,
where applicable, and are summarized in the accompanying tables.
AS OF JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,913 $ -- $ 4,913 $ (63) $ 4,850
------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 29,679 $ -- $ 29,679 $ 53 $ 29,732
Current and deferred taxes................. 3,267 (542) 2,725 (39) 2,686
------------- -------------- ----------- --------- -----------
Total Liabilities......................... $ 199,095 $ -- $ 199,095 $ 14 $ 199,109
------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 7,479 $ -- $ 7,479 $ (77) $ 7,402
------------- -------------- ----------- --------- -----------
AXA Equitable Equity....................... 13,273 -- 13,273 (77) 13,196
------------- -------------- ----------- --------- -----------
Total Equity............................... 16,257 -- 16,257 (77) 16,180
------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 846 $ -- $ -- $ 846 $ (12) $ 834
Net derivative gains (losses).............. 1,763 -- 5 1,768 8 1,776
------------- ---------- ------------ ----------- ---------- ----------
Total revenues........................... 4,548 -- (781) 3,767 (4) 3,763
|
F-94
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ------------ --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 1,363 $ -- $ -- $ 1,363 $ (7) $ 1,356
Interest credited to policyholders'
account balances......................... 208 -- -- 208 (9) 199
Compensation and benefits.................. 450 (32) (328) 90 -- 90
Commissions and distribution
related payments......................... 389 (116) (103) 170 -- 170
Amortization of deferred policy
acquisition costs........................ (49) 150 -- 101 (1) 100
Other operating costs and expenses......... 149 (2) (208) (61) -- (61)
------------- ---------- ------------- ------------ --------- ----------
Total benefits and other deductions...... 2,516 -- (641) 1,875 (17) 1,858
------------- ---------- ------------- ------------ --------- ----------
Income (loss) from continuing operations,
before income taxes......................... 2,032 -- (140) 1,892 13 1,905
------------- ---------- ------------- ------------ --------- ----------
Income tax (expense) benefit from
continuing operations....................... (419) -- 11 (408) (5) (413)
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) from continuing operations.. 1,613 -- (129) 1,484 8 1,492
------------- ---------- ------------- ------------ --------- ----------
Net income (loss)............................. 1,613 -- (113) 1,500 8 1,508
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) attributable to
AXA Equitable............................... $ 1,500 $ -- $ -- $ 1,500 $ 8 $ 1,508
============= ========== ============= ============ ========= ==========
|
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ 1,613 $ (113) $ 1,500 $ 8 $ 1,508
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss)............... 1,887 (93) 1,794 8 1,802
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable........................ $ 1,794 $ -- $ 1,794 $ 8 $ 1,802
============== ============== ============ ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,698 $ -- $ -- $ 1,698 $ (34) $ 1,664
Net derivative gains (losses).............. 1,362 -- 15 1,377 54 1,431
------------- ---------- ------------- ----------- --------- -----------
Total revenues........................... 6,823 -- (1,526) 5,297 20 5,317
|
F-95
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 2,338 $ -- $ -- $ 2,338 $ (10) $ 2,328
Compensation and benefits.................. 888 (65) (650) 173 -- 173
Commissions and distribution
related payments......................... 771 (230) (199) 342 -- 342
Amortization of deferred policy
acquisition costs........................ (20) 298 -- 278 62 340
Other operating costs and expenses......... 530 (3) (387) 140 -- 140
------------- ---------- ------------- ----------- --------- -----------
Total benefits and other deductions...... 4,966 -- (1,239) 3,727 52 3,779
------------- ---------- ------------- ----------- --------- -----------
Income (loss) from continuing operations,
before income taxes......................... 1,857 -- (287) 1,570 (32) 1,538
Income tax (expense) benefit from
continuing operations....................... (298) -- 22 (276) 11 (265)
------------- ---------- ------------- ----------- --------- -----------
Net income (loss) from continuing operations.. 1,559 -- (265) 1,294 (21) 1,273
------------- ---------- ------------- ----------- --------- -----------
Net income (loss)............................. 1,559 -- (231) 1,328 (21) 1,307
Net income (loss) attributable to
AXA Equitable............................... $ 1,328 $ -- $ -- $ 1,328 $ (21) $ 1,307
============= ========== ============= =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ 1,559 $ (231) $ 1,328 $ (21) $ 1,307
-------------- ------------ ------------ --------- -----------
Change in unrealized gains (losses), net
of reclassification adjustment............ 386 -- 386 21 407
Other comprehensive income................. 401 13 414 21 435
-------------- ------------ ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ 1,742 $ -- $ 1,742 $ -- $ 1,742
============== ============ ============ ========= ===========
|
F-96
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- --------------
(IN MILLIONS)
STATEMENTS OF EQUITY:
Retained earnings, beginning of year....... $ 6,151 $ -- $ 6,151 $ (56) $ 6,095
Net income (loss) attributable to
AXA Equitable............................. 1,328 -- 1,328 (21) 1,307
------------- ------------ ------------ --------- --------------
Retained earnings, end of period........... 7,479 -- 7,479 (77) 7,402
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
beginning of year......................... 17 -- 17 (21) (4)
Other comprehensive income (loss).......... 414 -- 414 21 435
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
end of period............................. 431 -- 431 -- 431
------------- ------------ ------------ --------- --------------
Total AXA Equitable's equity, end
of period................................ 13,273 -- 13,273 (77) 13,196
------------- ------------ ------------ --------- --------------
Noncontrolling interest, end of period..... 2,984 -- 2,984 -- 2,984
------------- ------------ ------------ --------- --------------
TOTAL EQUITY, END OF PERIOD............... $ 16,257 $ -- $ 16,257 $ (77) $ 16,180
============= ============ ============ ========= ==============
|
SIX MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ 1,559 $ -- $ (21) $ 1,538
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,698) -- 34 (1,664)
Net derivative (gains) losses............... (1,362) -- (54) (1,416)
Amortization and depreciation............... -- 233 62 295
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (61) 61 -- --
Equity (income) loss from
limited partnerships...................... -- (65) -- (65)
Distribution from joint ventures and
limited partnerships...................... 50 (50) -- --
Changes in:
Reinsurance recoverable................... (194) -- (354) (548)
Deferred policy acquisition costs......... 43 (43) -- --
Capitalization of deferred policy
acquisition costs....................... (63) (235) -- (298)
Future policy benefits.................... 1,303 -- 45 1,348
Current and deferred income taxes......... 204 -- 3 207
Other, net................................ 84 115 -- 199
----------- ----------------- ---------- -----------
Net cash provided by (used in)
operating activities......................... $ (75) $ (1) $ (285) $ (361)
----------- ----------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 1,078 $ -- $ 1,078
Payment for the purchase/origination of:
Short-term investments...................... -- (1,599) -- (1,599)
Change in short-term investments............. (508) 522 (14) $ --
Other, net................................... 243 -- (197) 46
----------- ----------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (3,588) $ 1 $ (211) $ (3,798)
----------- ----------------- ---------- -----------
|
F-97
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- -----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 4,109 $ -- $ 784 $ 4,893
Withdrawals................................ (1,557) -- (284) (1,841)
Transfer (to) from Separate Accounts..... 767 -- (4) 763
----------- ---------------- --------- -----------
Net cash provided by (used in)
financing activities........................ $ 4,182 $ -- $ 496 $ 4,678
----------- ---------------- --------- -----------
|
/(1)/Net income (loss) includes $231 million in the six months ended June 30,
2017 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items in the consolidated statement of
cash flows for the nine months ended September 30, 2017 financial
information that has been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
September 30, 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables. Tables for the other consolidated financial statements as of and for
the three and nine months ended September 30, 2017 are not included as these
revisions were already reflected in the Company's September 30, 2018
Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 432 $ -- $ 432
Other depreciation and amortization......... (67) 67 -- --
Equity (income) loss from
limited partnerships...................... -- (103) -- (103)
Distribution from joint ventures and
limited partnerships...................... 94 (94) -- --
Changes in:
Reinsurance recoverable................... (361) -- (455) (816)
Deferred policy acquisition costs......... 42 (42) -- --
Capitalization of deferred policy
acquisition costs....................... -- (433) -- (433)
Future policy benefits.................... 1,146 -- 168 1,314
Current and deferred income taxes......... 640 -- (389) 251
Other, net................................ 617 197 -- 814
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES........................ $ 994 $ (1) $ (676) $ 317
---------- ----------------- --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments..................... $ -- $ 1,909 $ -- $ 1,909
Payment for the purchase/origination of:
Short-term investments..................... -- (2,174) -- (2,174)
Change in short-term investments............ (266) 266 -- --
Other, net.................................. (258) -- 203 (55)
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES........................ $ (5,231) $ 1 $ 203 $ (5,027)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................... $ 5,871 $ -- $ 1,116 $ 6,987
Withdrawals................................. (2,574) -- (244) (2,818)
Transfer (to) from Separate Accounts........ 1,617 -- (399) 1,218
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES........................ $ 5,460 $ -- $ 473 $ 5,933
---------- ----------------- --------- ----------
|
F-98
22)SUBSEQUENT EVENTS
AXA Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the "2019 Plan")
In November 2018, Holdings' Board of Directors and AXA, as Holdings' then
controlling stockholder, adopted the 2019 Plan, which became effective
January 1, 2019, with a total of 5.2 million shares of common stock reserved
for issuance thereunder. On February 25, 2019, the Compensation Committee of
Holdings' Board of Directors approved an amendment to the 2019 Plan
increasing the amount of shares of Holdings' common stock available for
issuance in connection with equity awards granted under the 2019 Plan by two
million shares. The holder of a majority of the outstanding shares of
Holdings' common stock executed a written consent approving the increase on
February 28, 2019.
AXA Secondary Offering of Holdings Common Stock and Holdings Share Buy-back
On March 25, 2019, AXA completed a follow-on secondary offering of
46 million shares of common stock of Holdings and the sale to Holdings of
30 million shares of common stock of Holdings. Following the completion of
this secondary offering and the share buyback by Holdings, AXA owns 48.3% of
the shares of common stock of Holdings. As a result, Holdings is no longer a
majority owned subsidiary of AXA.
Repayment of Senior Surplus Note
On December 28, 2018, the Company, issued a $572 million senior surplus note
due December 28, 2019 to Holdings, which bears interest at a fixed rate of
3.75%, payable semi-annually. The Company repaid this note on March 5, 2019.
F-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE I
SUMMARY OF INVESTMENTS -- OTHER THAN INVESTMENTS IN RELATED PARTIES
AS OF DECEMBER 31, 2018
AMOUNT AT
WHICH SHOWN
ON BALANCE
COST/(1)/ FAIR VALUE SHEET
------------- ------------- -------------
(IN MILLIONS)
Fixed Maturities:
U.S. government, agencies and authorities.. $ 13,646 $ 13,335 $ 13,335
State, municipalities and
political subdivisions.................... 408 454 454
Foreign governments........................ 515 519 519
Public utilities........................... 4,614 4,569 4,569
All other corporate bonds.................. 22,076 21,807 21,807
Residential mortgage-backed................ 193 202 202
Asset-backed............................... 600 590 590
Redeemable preferred stocks................ 440 439 439
------------- ------------- -------------
Total fixed maturities....................... 42,492 41,915 41,915
Mortgage loans on real estate/(2)/........... 11,825 11,478 11,818
Real estate held for the production
of income................................. 52 52 52
Policy loans................................. 3,267 3,944 3,267
Other equity investments..................... 1,103 1,144 1,144
Trading securities........................... 15,361 15,166 15,166
Other invested assets........................ 1,554 1,554 1,554
------------- ------------- -------------
Total Investments............................ $ 75,654 $ 75,253 $ 74,916
============= ============= =============
|
/(1)/Cost for fixed maturities represents original cost, reduced by
repayments and write-downs and adjusted for amortization of premiums or
accretion of discount; cost for equity securities represents original
cost reduced by write-downs; cost for other limited partnership
interests represents original cost adjusted for equity in earnings and
reduced by distributions.
/(2)/Balance Sheet amount for mortgage loans on real estate represents
original cost adjusted for amortization of premiums or accretion of
discount and reduced by valuation allowance.
F-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE IV
REINSURANCE/(1)/
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
ASSUMED PERCENTAGE
CEDED TO FROM OF AMOUNT
GROSS OTHER OTHER NET ASSUMED
AMOUNT COMPANIES COMPANIES AMOUNT TO NET
---------- --------- --------- ---------- ----------
(IN MILLIONS)
AS OF DECEMBER 31, 2018
Life insurance in-force...................... $ 390,374 $ 69,768 $ 30,322 $ 350,928 8.6%
========== ========= ========= ========== =========
FOR THE YEAR ENDED DECEMBER 31, 2018
Premiums:
Life insurance and annuities................. $ 787 $ 128 $ 177 $ 836 21.2%
Accident and health.......................... 49 32 9 26 34.6%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 836 $ 160 $ 186 $ 862 21.6%
========== ========= ========= ========== =========
As of December 31, 2017
Life insurance in-force/(2)/................. $ 392,926 $ 73,843 $ 30,300 $ 349,383 8.7%
========== ========= ========= ========== =========
For the year ended December 31, 2017
Premiums:
Life insurance and annuities................. $ 826 $ 135 $ 186 $ 877 21.2%
Accident and health.......................... 54 36 9 27 33.3%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 880 $ 171 $ 195 $ 904 21.6%
========== ========= ========= ========== =========
As of December 31, 2016
Life insurance in-force...................... $ 399,230 $ 78,760 $ 31,722 $ 352,192 9.0%
========== ========= ========= ========== =========
For the year ended December 31, 2016
Premiums:
Life insurance and annuities................. $ 790 $ 135 $ 197 $ 852 23.1%
Accident and health.......................... 60 41 9 28 32.1%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 850 $ 176 $ 206 $ 880 23.4%
========== ========= ========= ========== =========
|
/(1)/Includes amounts related to the discontinued group life and health
business.
/(2)/Previously reported amounts for "Life insurance in-force -- Ceded to
other companies" of $41,330 million and "Net amount" of $381,896 have
been revised due to an error.
F-101
Incentive Life(R)'06
An individual flexible premium variable life insurance policy issued by AXA
Equitable Life Insurance Company with variable investment options offered under
AXA Equitable's Separate Account FP.
PROSPECTUS DATED MAY 1, 2019
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING, OR TAKING ANY
OTHER ACTION UNDER A POLICY. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES
AND SUPPLEMENTS. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST, WHICH
CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
This prospectus describes the Incentive Life(R) '06 policy, but is not itself a
policy. This prospectus is a disclosure document and describes all of the
policy's material features, benefits, rights and obligations, as well as other
information. The description of the policy's material provisions in this
prospectus is current as of the date of this prospectus. If certain material
provisions under the policy are changed after the date of this prospectus in
accordance with the policy, those changes will be described in a supplement to
this prospectus. You should carefully read this prospectus in conjunction with
any applicable supplements. To make this prospectus easier to read, we
sometimes use different words than the policy. AXA Equitable or your financial
professional can provide any further explanation about your policy.
This policy is no longer being sold. This prospectus is for current policy
owners only. You should note that your policy features and charges, and your
investment options, may vary depending on the state and/or the date on which
you purchased your policy. For more information about the particular features,
charges and options available to you, please contact your financial
professional and/or refer to your policy.
WHAT IS INCENTIVE LIFE(R) '06?
Incentive Life(R) '06 provides life insurance coverage, plus the opportunity
for you to earn a return in our guaranteed interest option and/or one or more
of the following variable investment options:
VARIABLE INVESTMENT OPTIONS
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT GAMCO Mergers & Acquisitions
. 1290 VT GAMCO Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. American Funds Insurance Series(R) Global Small Capitalization Fund
. American Funds Insurance Series(R) New World(R)
. Charter/SM/ Multi-Sector Bond
. Charter/SM/ Small Cap Growth
. Charter/SM/ Small Cap Value
. EQ/400 Managed Volatility/(2)/
. EQ/500 Managed Volatility/(2)/
. EQ/2000 Managed Volatility/(2)/
. EQ/AB Small Cap Growth/(2)/
. EQ/Aggressive Allocation/(1)(2)/
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/ClearBridge Large Cap Growth/(2)/
. EQ/Common Stock Index
. EQ/Conservative Allocation/(1)(2)/
. EQ/Conservative-Plus Allocation/(1)(2)/
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM(R) Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Global Equity Managed Volatility/(2)/
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Core Managed Volatility/(2)/
. EQ/International Equity Index
. EQ/International Managed Volatility/(2)/
. EQ/International Value Managed Volatility/(2)/
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science and Technology
. EQ/Janus Enterprise/(2)/
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Core Managed Volatility/(2)/
. EQ/Large Cap Growth Index
. EQ/Large Cap Growth Managed Volatility/(2)/
. EQ/Large Cap Value Index
. EQ/Large Cap Value Managed Volatility/(2)/
. EQ/Lazard Emerging Markets Equity
. EQ/Loomis Sayles Growth/(2)/
. EQ/MFS International Growth
. EQ/MFS(R) International Value
. EQ/Mid Cap Index
. EQ/Mid Cap Value Managed Volatility/(2)/
. EQ/Moderate Allocation/(1)(2)/
. EQ/Moderate-Plus Allocation/(1)(2)/
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/UBS Growth and Income
. Fidelity(R) VIP Growth & Income
. Fidelity(R) VIP Mid Cap
. Franklin Mutual Shares VIP
. Franklin Small Cap Value VIP
. Invesco V.I. Mid Cap Core Equity
VARIABLE INVESTMENT OPTIONS
. Invesco V.I. Small Cap Equity
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
. MFS(R) Investors Trust
. MFS(R) Massachusetts Investors Growth Stock
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
. PIMCO CommodityRealReturn(R) Strategy
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
. T. Rowe Price Equity Income II
. Templeton Developing Markets VIP
. Templeton Global Bond VIP
. Templeton Growth VIP
. VanEck VIP Global Hard Assets
(1)Also referred to as an "EQ Allocation investment option" in this prospectus.
(2)This is the variable investment option's new name, effective on or about
May 20, 2019, subject to regulatory approval. Please see "Portfolios of the
Trusts" later in this prospectus for the variable investment option's former
name.
Amounts that you allocate under your policy to any of the variable investment
options are invested in a corresponding "Portfolio" that is part of one of the
trusts (the "Trusts"), which are mutual funds. Please see "About the Portfolios
of the Trusts" for more information about the Portfolios and the Trusts. Your
investment results in a variable investment option will depend on those of the
related Portfolio. Any gains will generally be tax deferred and the life
insurance benefits we pay if the policy's insured person dies will generally be
income tax free.
OTHER CHOICES YOU HAVE. You have considerable flexibility to tailor the policy
to meet your needs. For example, subject to our rules, you can (1) choose when
and how much you contribute (as "premiums") to your policy, (2) pay certain
premium amounts to guarantee that your insurance coverage will continue for the
first five policy years, regardless of investment performance, (3) borrow or
withdraw amounts you have accumulated, (4) choose between two life insurance
death benefit options, (5) increase or decrease the amount of insurance
coverage, (6) elect to receive an insurance benefit if the insured person
becomes terminally ill, and (7) obtain certain optional benefits that we offer
by "riders" to your policy.
OTHER AXA EQUITABLE POLICIES. We offer a variety of fixed and variable life
insurance policies which offer policy features, including investment options,
that are different from those offered by this prospectus. Not every policy or
feature is offered through your financial professional. Replacing existing
insurance with Incentive Life(R) '06 or another policy may not be to your
advantage. You can contact us to find out more about any other AXA Equitable
insurance policy.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO
INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
#644380/AA & ADL
ELECTRONIC DELIVERY OF SHAREHOLDER REPORTS (PURSUANT TO RULE 30E-3). Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper
copies of the shareholder reports for portfolio companies available under your
policy will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Company or from your financial intermediary.
Instead, the reports will be made available on a web-site, and you will be
notified by mail each time a report is posted and provided with a website link
to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically from the
Company or your financial intermediary by calling 1-800-777-6510.
You may elect to receive all future reports in paper free of charge. You can
inform the Company or your financial intermediary that you wish to continue
receiving paper copies of your shareholder reports by calling 1-877-522-5035 or
by sending an email request to EquitableFunds@dfinsolutions.com. Your election
to receive reports in paper will apply to all portfolio companies available
under your policy.
Contents of this Prospectus
--------------------------------------------------------------------
1. RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS
AND RISKS 6
--------------------------------------------------------------------
How you can pay for and contribute to your policy 6
The minimum amount of premiums you must pay 6
You can guarantee that your policy will not terminate
during the first five years 7
You can elect a "paid up" death benefit guarantee 7
You can receive an accelerated death benefit under the
Long Term Care Services/SM/ Rider 7
Investment options within your policy 7
About your life insurance benefit 8
Alternative higher death benefit in certain cases 9
You can increase or decrease your insurance coverage 10
Accessing your money 10
Risks of investing in a policy 11
How the Incentive Life(R) '06 variable life insurance policy is
available 11
--------------------------------------------------------------------
2. RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES
YOU WILL PAY 12
--------------------------------------------------------------------
Tables of policy charges 12
How we allocate charges among your investment options 14
Changes in charges 14
--------------------------------------------------------------------
3. WHO IS AXA EQUITABLE? 15
--------------------------------------------------------------------
How to reach us 16
About our Separate Account FP 16
Your voting privileges 17
About the Trusts 17
--------------------------------------------------------------------
4. ABOUT THE PORTFOLIOS OF THE TRUSTS 18
--------------------------------------------------------------------
Portfolios of the Trusts 19
--------------------------------------------------------------------
5. DETERMINING YOUR POLICY'S VALUE 28
--------------------------------------------------------------------
Your policy account value 28
|
"We,""our," "us" and the "Company" refer to AXA Equitable. "Financial
professional" means the registered representative of either AXA Advisors or an
unaffiliated broker which has entered into a selling agreement with AXA
Distributors who is offering you this policy.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person or persons having the right or responsibility that
the prospectus is discussing at that point. This usually is the policy's owner.
If a policy has more than one owner, all owners must join in the exercise of
any rights an owner has under the policy, and the word "owner" therefore refers
to all owners.
When we use the word "state," we also mean any other local jurisdiction whose
laws or regulations affect a policy.
This prospectus does not offer Incentive Life(R) '06 anywhere such offers are
not lawful. AXA Equitable does not authorize any information or representation
about the offering other than that contained or incorporated in this
prospectus, in any current supplements thereto, or in any related sales
materials authorized by AXA Equitable.
3
CONTENTS OF THIS PROSPECTUS
------------------------------------------------------
6. TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT
OPTIONS 29
------------------------------------------------------
Transfers you can make 29
How to make transfers 29
Our automatic transfer service 29
Our asset rebalancing service 30
------------------------------------------------------
7. ACCESSING YOUR MONEY 31
------------------------------------------------------
Borrowing from your policy 31
Loan extension 32
Making withdrawals from your policy 33
Surrendering your policy for its net cash
surrender value 33
Your option to receive a terminal illness living
benefit 33
------------------------------------------------------
8. TAX INFORMATION 34
------------------------------------------------------
Basic income tax treatment for you and your
beneficiary 34
Tax treatment of distributions to you (loans,
partial withdrawals, and full surrender) 34
Tax treatment of living benefits rider or Long
Term Care Services/SM/ Rider under a policy
with the applicable rider 36
Business and employer owned policies 36
Requirement that we diversify investments 37
Estate, gift, and generation-skipping taxes 37
Pension and profit-sharing plans 37
Split-dollar and other employee benefit programs 37
ERISA 37
3.8% Tax on Net Investment Income or "NII" 38
Our taxes 38
Tax withholding and information reporting 38
Possibility of future tax changes and other tax
information 38
------------------------------------------------------
9. MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS 40
------------------------------------------------------
Guarantee premium test for the five-year no-lapse
guarantee 40
Paid up death benefit guarantee 40
Other benefits you can add by rider 41
Customer loyalty credit 45
Variations among Incentive Life(R) '06 policies 45
Your options for receiving policy proceeds 45
Your right to cancel within a certain number of
days 45
------------------------------------------------------
10. MORE INFORMATION ABOUT CERTAIN POLICY CHARGES 46
------------------------------------------------------
Deducting policy charges 46
Charges that the Trusts deduct 49
------------------------------------------------------
11.MORE INFORMATION ABOUT PROCEDURES THAT APPLY
TO YOUR POLICY 50
------------------------------------------------------
Dates and prices at which policy events occur 50
Policy issuance 51
Ways to make premium and loan payments 51
Assigning your policy 51
You can change your policy's insured person 51
|
Requirements for surrender requests 52
Gender-neutral policies 52
Future policy exchanges 52
Broker transaction authority 52
----------------------------------------------------------------------
12. MORE INFORMATION ABOUT OTHER MATTERS 53
----------------------------------------------------------------------
About the general account 53
Transfers of your policy account value 53
Telephone and Internet requests 54
Cybersecurity 55
Suicide and certain misstatements 55
When we pay policy proceeds 55
Changes we can make 55
Reports we will send you 56
Distribution of the policies 56
Legal proceedings 58
----------------------------------------------------------------------
13.FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE 59
----------------------------------------------------------------------
----------------------------------------------------------------------
14. PERSONALIZED ILLUSTRATIONS 60
----------------------------------------------------------------------
Illustrations of policy benefits 60
----------------------------------------------------------------------
REQUESTING MORE INFORMATION
----------------------------------------------------------------------
Statement of Additional information
Table of contents
----------------------------------------------------------------------
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4
CONTENTS OF THIS PROSPECTUS
An index of key words and phrases
This index should help you locate more information on the terms used in this
prospectus.
PAGE
Administrative Office 16
age 51
Allocation Date 8
alternative death benefit 9
amount at risk 47
anniversary 6
assign; assignment 51
automatic transfer service 50
AXA Equitable 15
AXA Equitable Access Account 45
AXA Equitable Holdings, Inc. 15
basis 35
beneficiary 8, 45
business day 50
Cash Surrender Value 10
Code 6
collateral 31
cost of insurance charge 47
cost of insurance rates 47
customer loyalty credit 45
day 50
default 6
disruptive transfer activity 53
face amount 8
five-year no-lapse guarantee 40
grace period 6
Guaranteed Interest Account 8
guarantee premium 7
guaranteed interest option 8
Incentive Life(R) '06 1
insured person 1
Internet 16
investment funds 8
investment option 1
issue date 51
lapse 6
loan extension 32
loan, loan interest 31
Long Term Care Services/SM/ Rider 36, 42
market timing 16
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PAGE
modified endowment contract 34
month, year 51
monthly deduction 14
net cash surrender value 33
net policy account value 28
Option A, B 8
our 3
owner 3
paid up 7, 34
paid up death benefit guarantee 7, 40
partial withdrawal 33
payment option 45
planned initial premium 6
planned periodic premium 6
policy 1
policy account value 28
Portfolio 1
premium payments 6
prospectus 1
rebalancing 30
receive 7
restore, restoration 7
riders 1
SEC 1
Separate Account FP 16
state 3
subaccount 16
surrender 33
surrender charge 46
target premium 46
transfers 29
Trusts 1
unit values 16
units 28
us 3
variable investment option 1
we 3
withdrawal 33
you, your 3
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5
AN INDEX OF KEY WORDS AND PHRASES
1. Risk/benefit summary: Policy features, benefits and risks
Incentive Life(R) '06 is a variable life insurance policy that provides you
with flexible premium payment plans and benefits to meet your specific needs.
The basic terms of the policy require you to make certain payments in return
for life insurance coverage. The payments you can make and the coverage you can
receive under this "base policy" are described below.
Riders to your base policy can increase the benefits you receive and affect the
amounts you pay in certain circumstances. Available riders are listed in "Other
benefits you can add by rider" under "More information about policy features
and benefits" later in this prospectus.
HOW YOU CAN PAY FOR AND CONTRIBUTE TO YOUR POLICY
PREMIUM PAYMENTS. We call the amounts you contribute to your policy "premiums"
or "premium payments." The amount we require as your first premium varies
depending on the specifics of your policy and the insured person. Each
subsequent premium payment must be at least $50, although we can increase this
minimum if we give you advance notice. Otherwise, with a few exceptions
mentioned below, you can make premium payments at any time and in any amount.
SECTION 1035 EXCHANGES OF POLICIES WITH OUTSTANDING LOANS. If we approve, you
may purchase an Incentive Life(R) '06 policy through an assignment and exchange
of another life insurance policy with a cash surrender value pursuant to a
valid exchange under Section 1035 of the Internal Revenue Code (the "Code"). If
such other policy is subject to a policy loan, we may permit you to carry over
all or a portion of such loan to the Incentive Life(R) '06 policy, subject to
our administrative rules then in effect. In this case, we will treat any cash
paid, plus any loaned amount carried over to the Incentive Life(R) '06 policy,
as premium received in consideration of our issuing the policy. If we allow you
to carry over all or a portion of any such outstanding loan, then we will hold
amounts securing such loan in the same manner as the collateral for any other
policy loan, and your policy also will be subject to all our other rules
regarding loans (see "Borrowing from your policy" later in this prospectus).
YOU CAN GENERALLY PAY PREMIUMS AT SUCH TIMES AND IN SUCH AMOUNTS AS YOU LIKE
BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S 100TH BIRTHDAY, SO LONG
AS YOU DON'T EXCEED CERTAIN LIMITS DETERMINED BY THE FEDERAL INCOME TAX LAWS
APPLICABLE TO LIFE INSURANCE.
LIMITS ON PREMIUM PAYMENTS. The federal tax law definition of "life insurance"
limits your ability to pay certain high levels of premiums (relative to the
amount of your policy's insurance coverage). Also, if your premium payments
exceed certain other amounts specified under the Internal Revenue Code, your
policy will become a "modified endowment contract," which may subject you to
additional taxes and penalties on any distributions from your policy. See "Tax
information" later in this prospectus. We may return any premium payments to
you that would exceed those limits.
You can ask your financial professional to provide you with an Illustration of
Policy Benefits that shows you the amount of premiums you can pay, based on
various assumptions, without exceeding these tax law limits. The tax law limits
can change as a result of certain changes you make to your policy. For example,
a reduction in the face amount of your policy may reduce the amount of premiums
that you can pay and may impact whether your policy is a modified endowment
contract.
If at any time your policy account value is high enough that the "alternative
higher death benefit" discussed later in this section would apply, we reserve
the right to limit the amount of any premiums that you pay, unless the insured
person provides us with evidence of insurability satisfactory to us.
PLANNED PERIODIC PREMIUMS. Page 3 of your policy will specify a "planned
periodic premium." This is the amount that you request us to bill you. However,
payment of these or any other specific amounts of premiums is not mandatory.
You need to pay only the amount of premiums (if any) necessary to keep your
policy from lapsing and terminating as discussed below.
THE MINIMUM AMOUNT OF PREMIUMS YOU MUST PAY
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if your "net policy account value" is not enough to
pay your policy's monthly charges when due unless:
. you have paid sufficient premiums to maintain the five-year no-lapse
guarantee, the guarantee is still in effect and any outstanding loan and
accrued loan interest does not exceed the policy account value (see "You
can guarantee that your policy will not terminate during the first five
years" below);
. you are receiving monthly benefit payments under the Long Term Care
Services/SM/ Rider (see "Other benefits you can add by rider" under "More
information about policy features and benefits" later in this prospectus);
. you have elected the paid up death benefit guarantee and it remains in
effect and any outstanding policy loan and accrued loan interest does not
exceed the policy account value. (see "You can elect a "paid up" death
benefit guarantee" below); or
. your policy has an outstanding loan that would qualify for "loan extension."
("Policy account value" and "net policy account value" are explained under
"Determining your policy's value" later in this prospectus.)
We will mail a notice to you at your last known address if your policy lapses.
You will have a 61-day grace period to pay at least an amount prescribed in
your policy which would be enough to keep your policy in force for
approximately three months (without regard to investment performance). You may
not make any transfers or request any other policy changes during a grace
period. If we do not receive your
6
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
payment by the end of the grace period, your policy (and all riders to the
policy) will terminate without value and all coverage under your policy will
cease. We will mail an additional notice to you if your policy terminates.
YOUR POLICY WILL TERMINATE IF YOU DON'T PAY ENOUGH PREMIUMS (I) TO PAY THE
CHARGES WE DEDUCT OR (II) TO MAINTAIN THE FIVE-YEAR NO-LAPSE GUARANTEE THAT CAN
KEEP YOUR POLICY FROM TERMINATING. HOWEVER, WE WILL FIRST SEND YOU A NOTICE AND
GIVE YOU THE OPPORTUNITY TO PAY ANY SHORTFALL.
You may owe taxes if your policy terminates while you have a loan outstanding,
even though you receive no additional money from your policy at that time. See
"Tax information," later in this prospectus.
RESTORING A TERMINATED POLICY. To have your policy "restored" (put back in
force), you must apply within six months after the date of termination. In some
states, you may have a longer period of time. You must also (i) present
evidence of insurability satisfactory to us and (ii) pay at least the amount of
premium that we require. The amount of payment will not be more than an amount
sufficient to cover total monthly deductions for 3 months, calculated from the
effective date of restoration, and the premium charge. We will determine the
amount of this required payment as if no interest or investment performance
were credited to or charged against your policy account. Your policy contains
additional information about the minimum amount of this premium and about the
values and terms of the policy after it is restored and the effective date of
such restoration. You may only restore your policy if it has terminated without
value. You may not restore a policy that was given up for its net cash
surrender value. The five-year no-lapse guarantee will not be restored after
the policy terminates.
YOU CAN GUARANTEE THAT YOUR POLICY WILL NOT TERMINATE DURING THE FIRST FIVE
YEARS
You can generally guarantee that your policy will not terminate for the first
five policy years by paying at least certain specified amounts of premiums. We
call these amounts "guarantee premiums" and they will be set forth on page 3 of
your policy. We call this guarantee against termination our "no lapse
guarantee." In some states, this guarantee may be referred to by a different
name.
Your policy will not terminate, even if your net policy account value is not
sufficient to pay your monthly charges, as long as:
. You have satisfied the "guarantee premium test" (discussed in "guarantee
premium test for the five-year no lapse guarantee" under "More information
about policy benefits" later in this prospectus); and
. Any outstanding loan and accrued loan interest does not exceed the policy
account value.
There is no extra charge for this guarantee.
IF YOU PAY AT LEAST CERTAIN PRESCRIBED AMOUNTS OF PREMIUMS, AND ANY OUTSTANDING
POLICY LOAN AND ACCRUED LOAN INTEREST DO NOT EXCEED THE POLICY ACCOUNT VALUE,
YOUR POLICY WILL NOT LAPSE DURING THE FIRST FIVE POLICY YEARS, EVEN IF THE
VALUE IN YOUR POLICY BECOMES INSUFFICIENT TO PAY THE MONTHLY CHARGES.
YOU CAN ELECT A "PAID UP" DEATH BENEFIT GUARANTEE
Provided certain requirements are met and subject to our approval, you may
elect to take advantage of our "paid up" death benefit guarantee at any time
after the fourth year of your policy if the insured's attained age is 99 or
less. If you elect the paid up death benefit guarantee, we may reduce your base
policy's face amount. Thereafter, your policy will not lapse so long as the
paid up death benefit guarantee remains in effect. Also, if you elect the paid
up death benefit guarantee, you will be required to reallocate your existing
policy account value to a limited number of variable investment options that we
make available at our discretion. The guaranteed interest option will also be
available; however, we will limit the amount that may be allocated to the
guaranteed interest option at any time. Our paid up death benefit guarantee is
not available if you received monthly benefit payments under the Long Term Care
Services/SM/ Rider at any time.
The guarantee will terminate if (i) at any time following the election, the sum
of any outstanding policy loan and accrued interest, exceeds your policy
account value, or (ii) you request that we terminate the election. For more
information about the circumstances under which you can elect the paid up death
benefit, the possible reduction in face amount after this guarantee is elected
(including the possible imposition of surrender charges upon such reduction),
restrictions on allocating your policy account value and other effects of this
guarantee on your policy, see "Paid up death benefit guarantee" under "More
information about policy features and benefits" later in this prospectus.
YOU CAN RECEIVE AN ACCELERATED DEATH BENEFIT UNDER THE LONG TERM CARE
SERVICES/SM/ RIDER
In states where approved, an optional rider may be added to your policy at
issue that provides an acceleration of the policy's death benefit in the form
of monthly payments if the insured becomes chronically ill and is receiving
qualifying long-term care services. This is our Long Term Care Services/SM/
Rider. The monthly rate for this rider varies based on the individual
characteristics of the insured and the benefit percentage you select. You can
terminate this rider after your first policy year. For more information about
this rider, see "Other benefits you can add by rider" under "More information
about policy features and benefits" later in this prospectus.
INVESTMENT OPTIONS WITHIN YOUR POLICY
Except as set forth in the next sentence, we will initially put all unloaned
amounts which you have allocated to variable investment options into such
options on the later of the business day that we receive the full minimum
initial premium or the register date (the "Investment Start Date").
In those states that require us to return your premium without adjustment for
investment performance within a certain number of days (see "Your right to
cancel within a certain number of days," later in this prospectus), we will
initially put all amounts which you have allocated to the variable investment
options into our EQ/Money Market investment option. In this case, on the first
business day following the twentieth day after your policy is issued, we will
reallocate that investment in accordance with your premium
7
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
allocation instructions then in effect. For policies issued in these states,
the "Allocation Date" is the first business day following the twentieth day
after your policy is issued. For all other policies, the Allocation Date is the
Investment Start Date.
You give such allocation instructions in your application to purchase a policy.
You can change the premium allocation percentages at any time, but this will
not affect any prior allocations. The allocation percentages that you specify
must always be in whole numbers and total exactly 100%.
The policy is between you and AXA Equitable. The policy is not an investment
advisory account, and AXA Equitable is not providing any investment advice or
managing the allocations under your policy. In the absence of a specific
written arrangement to the contrary, you, as the owner of the policy, have the
sole authority to make investment allocations and other decisions under the
policy. Your AXA Advisors' financial professional is acting as a broker-dealer
registered representative, and is not authorized to act as an investment
advisor or to manage the allocations under your policy. If your financial
professional is a registered representative with a broker-dealer other than AXA
Advisors, you should speak with him/her regarding any different arrangements
that may apply.
YOU CAN CHOOSE AMONG VARIABLE INVESTMENT OPTIONS.
VARIABLE INVESTMENT OPTIONS. The available variable investment options are
listed on the front cover of this prospectus. (Your policy and other
supplemental materials may refer to these as "Investment Funds.") The
investment results you will achieve in any one of these options will depend on
the investment performance of the corresponding Portfolio that shares the same
name as that option. That Portfolio follows investment practices, policies and
objectives that are appropriate to the variable investment option you have
chosen. You can lose your principal when investing in the variable investment
options. In periods of poor market performance, the net return, after charges
and expenses, may result in negative yields, including for the EQ/Money Market
variable investment option.
The advisers who make the investment decisions for each Portfolio are set forth
later in the prospectus under "About the Portfolios of the Trusts."
You will find other important information about each Portfolio in the separate
prospectuses for each Trust which accompany this prospectus, including a
comprehensive discussion of the risks of investing in each Portfolio. To obtain
copies of Trust prospectuses that do not accompany this prospectus, you may
call one of our customer service representatives at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.). We may add or delete
variable investment options or Portfolios at any time.
If you elect the paid up death benefit guarantee, your choice of variable
investment options will be limited to the EQ Allocation investment options, or
those investment options we are then making available under the rider (see
"Other benefits you can add by rider" under "More information about policy
features and benefits").
GUARANTEED INTEREST OPTION. You can also allocate some or all of your policy's
value to our guaranteed interest option. We, in turn, invest such amounts as
part of our general assets. Periodically, we declare a fixed rate of interest
(2% minimum) on amounts that you allocate to our guaranteed interest option. We
credit and compound the interest daily at an effective annual rate that equals
the declared rate. The rates we are declaring on existing policies at any time
may differ from the rates we are then declaring for newly issued policies. (The
guaranteed interest option is part of what your policy and other supplemental
material may refer to as the "Guaranteed Interest Account.")
If you elect the paid up death benefit guarantee, we will restrict the amount
of the policy account value that can be transferred or allocated to the
guaranteed interest option. For more information on these restrictions, see
"Paid up death benefit guarantee" under "More information about policy features
and benefits" later in this prospectus.
WE WILL PAY AT LEAST 2% ANNUAL INTEREST ON OUR GUARANTEED INTEREST OPTION.
ABOUT YOUR LIFE INSURANCE BENEFIT
YOUR POLICY'S FACE AMOUNT. In your application to buy an Incentive Life(R) '06
policy, you tell us how much insurance coverage you want on the life of the
insured person. We call this the "face amount" of the base policy. $100,000 is
the minimum amount of coverage you can request.
IF THE INSURED PERSON DIES, WE PAY A LIFE INSURANCE BENEFIT TO THE
"BENEFICIARY" YOU HAVE NAMED. THE AMOUNT WE PAY DEPENDS ON WHETHER YOU HAVE
CHOSEN DEATH BENEFIT OPTION A OR DEATH BENEFIT OPTION B. (SEE "YOUR OPTIONS FOR
RECEIVING POLICY PROCEEDS" UNDER "MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS" LATER IN THIS PROSPECTUS.)
YOUR POLICY'S "DEATH BENEFIT" OPTIONS. In your policy application, you also
choose whether the basic amount (or "benefit") we will pay if the insured
person dies is:
. Option A -- THE POLICY'S FACE AMOUNT on the date of the insured person's
death. The amount of this death benefit doesn't change over time, unless
you take any action that changes the policy face amount;
-- or --
. Option B -- THE FACE AMOUNT PLUS THE "POLICY ACCOUNT VALUE" on the date of
death. Under this option, the amount of the death benefit generally changes
from day to day, because many factors (including investment performance,
charges, premium payments and withdrawals) affect your policy account value.
Your "policy account value" is the total amount that at any time is earning
interest for you or being credited with investment gains and losses under your
policy. (Policy account value is discussed in more detail under "Determining
your policy's value" later in this prospectus.)
Under Option B, your policy's death benefit will tend to be higher than under
Option A, assuming the same policy face amount and policy account value. As a
result, the monthly insurance charge we deduct will also be higher to
compensate us for our additional risk. If you have elected the paid up death
benefit guarantee or your policy has been placed on loan extension, the death
benefit option will be Option A and must remain Option A thereafter.
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
ALTERNATIVE HIGHER DEATH BENEFIT IN CERTAIN CASES
Your policy is designed to always provide a minimum level of insurance
protection relative to your policy account value, in part to meet the Code's
definition of "life insurance."
We will automatically pay an alternative death benefit if it is HIGHER than the
basic Option A or Option B death benefit you have selected. This alternative
death benefit is computed by multiplying your policy account value on the
insured person's date of death by a percentage specified in your policy. The
percentage depends on the insured person's age. Representative percentages are
as follows:
IF THE ACCOUNT VALUE IN YOUR POLICY IS HIGH ENOUGH, RELATIVE TO THE FACE
AMOUNT, THE LIFE INSURANCE BENEFIT WILL AUTOMATICALLY BE GREATER THAN THE
OPTION A OR OPTION B DEATH BENEFIT YOU HAVE SELECTED.
----------------------------------------------------
AGE:* 40 AND UNDER 45 50 55 60 65
----------------------------------------------------
%: 250% 215% 185% 150% 130% 120%
----------------------------------------------------
AGE: 70 75-90 91 92 93 94-OVER
----------------------------------------------------
%: 115% 105% 104% 103% 102% 101%
----------------------------------------------------
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* For the then-current policy year.
This higher alternative death benefit exposes us to greater insurance risk than
the regular Option A and B death benefits. Because the cost of insurance
charges we make under your policy are based in part on the amount of our risk,
you will pay more cost of insurance charges for any periods during which the
higher alternative death benefit is the operative one.
The alternative higher death benefit is a component of the Option A and Option
B death benefits that will be paid (if higher) in order for the Incentive
Life(R) '06 policy to satisfy the definition of "life insurance contract" under
Section 7702 of the Code. In general, for a policy to be treated as a life
insurance contract under the Code, it must pass one of two tests, the cash
value accumulation test or the guideline premium/cash value corridor test. Only
the guideline premium/cash value corridor test applies to the Incentive Life(R)
'06 policy. Under the guideline premium requirement, the sum of the premiums
paid under the policy may not at any time exceed the greater of the guideline
single premium or the sum of the guideline level premiums, for the benefits
promised under the policy. Under the cash value corridor requirement, the death
benefit at any time must be equal to or greater than the applicable percentage
of policy account value specified in Section 7702(c) of the Code. We apply
these principles to both Option A and Option B death benefits.
The operative period for the higher alternative death benefit is determined in
connection with the requirements of the Code. The calculation of the death
benefit is built into the monthly calculation of the cost of insurance charge,
which is based on the net amount at risk. The need for the higher alternative
death benefit is assessed on each monthly anniversary date, and on the death of
the insured. Each policy owner receives an annual statement showing various
policy values. The annual statement shows the death benefit amount as of the
policy anniversary, and that amount would reflect the alternative higher death
benefit amount, if applicable at that time. This annual statement also reflects
the monthly cost of insurance charge for the policy year, reflecting a higher
net amount at risk in those months when the higher alternative death benefit is
in effect.
OTHER ADJUSTMENTS TO DEATH BENEFIT. We will increase the death benefit proceeds
by the amount of any other benefits we owe upon the insured person's death
under any optional riders which are in effect.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loan and unpaid loan interest, as well as any amount of monthly charges
under the policy that remain unpaid because the insured person died during a
grace period. We also reduce the death benefit if we have already paid part of
it under a living benefits rider. We reduce it by the amount of the living
benefits payment plus interest. See "Your option to receive a terminal illness
living benefit" later in this prospectus. Under the Long Term Care Services/SM/
Rider, any monthly benefit payments will be treated as a lien against the death
benefit and reduce your death benefit.
DEATH BENEFIT IF YOUR POLICY IS ON LOAN EXTENSION. Your policy offers an
additional feature against policy termination due to an outstanding loan,
called "loan extension." Availability of this feature is subject to certain
terms and conditions, including that you must have had your policy in force at
least 20 years. If your policy is on loan extension, the death benefit payable
under the policy will be determined differently. For more information on loan
extension, see "Borrowing from your policy" under "Accessing your money."
SUBJECT TO CERTAIN RESTRICTIONS YOU CAN REQUEST A CHANGE IN YOUR DEATH BENEFIT
OPTION.
CHANGE OF DEATH BENEFIT OPTION. If you change from Option A to Option B, we
automatically reduce your base policy's face amount by an amount equal to your
policy account value at the time of the change. We may refuse this change if
the policy's face amount would be reduced below $100,000. Changes from Option A
to Option B are not permitted beyond the policy year in which the insured
person reaches age 80, if the paid up death benefit guarantee is in effect or
your policy is on loan extension. Also, changes from Option A to Option B may
cause certain policy benefits to be unavailable.
If you change from Option B to Option A, we automatically increase your base
policy's face amount by an amount equal to your policy account value at the
time of the change. You can request a change from Option B to Option A any time
after the second policy year and before the policy anniversary nearest the
insured's 100/th/ birthday.
If the alternative death benefit (referenced above) is higher than the base
policy's death benefit at the time of the change in death benefit option, we
will determine the new base policy face amount somewhat differently from the
general procedures described above.
We will not deduct or establish any amount of surrender charge as a result of a
change in death benefit option. You may not change the death benefit option
under your policy while the Long Term Care Services/SM /Rider is in effect.
Please refer to "Tax information" later in this prospectus, to learn about
certain possible income tax consequences that may result from a change in death
benefit option, including the effect of an automatic increase or decrease in
face amount.
9
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
YOU CAN INCREASE OR DECREASE YOUR INSURANCE COVERAGE
After the first policy year while this policy is in force, you may request an
increase in life insurance coverage under your policy. You may request a
decrease in your policy's face amount any time after the second year of your
policy but before the policy year in which the insured person reaches age 100.
The requested increase or decrease must be at least $10,000. Please refer to
"Tax information" for certain possible tax consequences and limitations of
changing the face amount of your policy.
We can refuse or limit any requested increase or decrease. We will not approve
any increase or decrease if (i) we are at that time being required to waive
charges or pay premiums under any optional disability waiver rider that is part
of the policy; (ii) the paid up death benefit guarantee is in effect; or
(iii) your policy is on loan extension. Also, we will not approve a face amount
increase if the insured person has reached age 81 or you have elected the
accounting benefit endorsement. Moreover, we will not approve a face amount
increase while the Long Term Care Services/SM/ Rider is in effect. We will not
accept a request for a face amount decrease while you are receiving monthly
benefit payments under the Long Term Care Services/SM/ Rider.
Certain policy changes, including increases and decreases in your insurance
coverage, may also affect the guarantee premiums under the policy.
The following additional conditions also apply:
FACE AMOUNT INCREASES. We treat an increase in face amount in many respects as
if it were the issuance of a new policy. For example, you must submit
satisfactory evidence that the insured person still meets our requirements for
coverage. Also, we establish additional amounts of surrender charge and
guarantee premiums under your policy for the face amount increase, reflecting
the additional amount of coverage.
In most states, you can cancel the face amount increase within 10 days after
you receive a new policy page showing the increase. If you cancel, we will
reverse any charges attributable to the increase and recalculate all values
under your policy to what they would have been had the increase not taken place.
The monthly cost of insurance charge we make for the amount of the increase
will be based on the underwriting classification of the insured person when the
original policy was issued, provided the insured qualifies for the same or
better underwriting classification. An additional ten-year surrender charge and
an additional administrative charge will apply to the face amount that exceeds
the highest previous face amount. If the insured qualifies for a less favorable
underwriting classification than the base policy, we may offer to issue a
separate policy based on the rating class for the increase. See "Risk/benefit
summary: Charges and expenses you will pay."
FACE AMOUNT DECREASES. You may not reduce the face amount below the minimum we
are then requiring for new policies. Nor will we permit a decrease that would
cause your policy to fail the Internal Revenue Code's definition of life
insurance. Guarantee premiums, as well as our monthly deductions for the cost
of insurance coverage, will generally decrease from the time you reduce the
face amount.
If you reduce the face amount during the first 10 years of your policy, or
during the first 10 years after a face amount increase you have requested, we
will deduct all or part of the remaining surrender charge from your policy
account. Assuming you have not previously changed the face amount, the amount
of the surrender charge we will deduct will be determined by dividing the
amount of the decrease by the initial face amount and multiplying that fraction
by the total amount of surrender charge that still remains applicable to your
policy. We deduct the charge from the same investment options as if it were
part of a regular monthly deduction under your policy.
In some cases, we may have to make a distribution to you from your policy at
the time we decrease your policy's face amount or change your death benefit
option. This may be necessary in order to preserve your policy's status as life
insurance under the Internal Revenue Code. We may also be required to make such
distribution to you in the future on account of a prior decrease in face amount
or change in death benefit option. The distribution may be taxable.
ACCESSING YOUR MONEY
You can access the money in your policy in different ways. You may borrow up to
90% of the cash surrender value, less any outstanding loan and accrued loan
interest before the policy year in which the insured reaches age 75 (100%
thereafter). In your policy, the cash surrender value is equal to the
difference between your policy account value and any surrender charges that are
in effect under your policy. However, the amount you can borrow will be reduced
by any amount that we hold on a "restricted" basis following your receipt of a
terminal illness living benefits payment, as well as by any other loans and
accrued loan interest you have outstanding. The cash surrender value available
for loans is also reduced on a pro rata basis for the portion of policy face
amount accelerated to date but not by more than the accumulated benefit lien
amount. See "More information about policy features and benefits: Other
benefits you can add by rider: Long Term Care Services/SM/ Rider" later in this
prospectus. We will charge interest on the amount of the loan. See "Borrowing
from your policy" later in this prospectus for more information.
You can also make a partial withdrawal of $500 or more of your net cash
surrender value (defined later in this prospectus under "Surrendering your
policy for its net cash surrender value") at any time after the first year of
your policy and before the policy anniversary nearest to the insured's 100th
birthday. Partial withdrawals are not permitted you have elected the paid up
death benefit guarantee, your policy is on loan extension, or you are receiving
monthly benefit payments under the Long Term Care Services/SM/ Rider. See
"Making withdrawals from your policy" later in this prospectus for more
information.
Finally, you can surrender (turn in) your policy for its net cash surrender
value at any time. See "Surrendering your policy for its net cash surrender
value" later in this prospectus. See "Tax information" later in this
prospectus, for the tax treatment of the various ways in which you can access
your money.
10
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
RISKS OF INVESTING IN A POLICY
The policy is unsuitable as a short-term savings vehicle. Some of the principal
risks of investing in a policy are as follows:
. If the investment options you choose perform poorly, you could lose some or
all of the premiums you pay.
. If the investment options you choose do not make enough money to pay for
the policy charges, except to the extent provided by any five-year no lapse
guarantee, paid-up death benefit guarantee or loan extension feature you
may have, you could have to pay more premiums to keep your policy from
terminating.
. If any policy loan and any accrued loan interest either equals or exceeds
the policy account value, your policy will terminate subject to the
policy's Grace Period provision and any loan extension endorsement you may
have.
. We can increase, without your consent and subject to any necessary
regulatory approvals, any charge that you currently pay at less than the
maximum amount. We will not increase any charge beyond the highest maximum
noted in the tables in the next chapter in "Tables of policy charges" under
"Risk/benefit summary: Charges and expenses you will pay".
. You may have to pay a surrender charge and there may be adverse tax
consequences if you wish to discontinue some or all of your insurance
coverage under a policy.
. Partial withdrawals from your policy are available only after the first
policy year and must be at least $500 and no more than the net cash
surrender value. Under certain circumstances, we will automatically reduce
your policy's face amount as a result of a partial withdrawal.
Your policy permits other transactions that also have risks. These and other
risks and benefits of investing in a policy are discussed in detail throughout
this prospectus.
A comprehensive discussion of the risks of each investment option may be found
in the Trust prospectus for that investment option.
HOW THE INCENTIVE LIFE(R) '06 VARIABLE LIFE INSURANCE POLICY IS AVAILABLE
Incentive Life(R) '06 was primarily intended for purchasers other than
retirement plans. However, we do not place limitations on its use. Please see
"Tax information" for more information. Incentive Life(R) '06 was available for
issue ages 0 to 85.
11
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
2. Risk/benefit summary: Charges and expenses you will pay
TABLES OF POLICY CHARGES
For more information about some of these charges, see "Deducting policy
charges" under "More information about certain policy charges" later in this
prospectus. The illustrations of Policy Benefits that your financial
professional will provide will show the impact of the actual current and
guaranteed maximum rates, if applicable, of the following policy charges, based
on various assumptions (except for the loan interest spread, where we use
current rates in all cases).
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the policy. The first table shows the charges
that we deduct under the terms of your policy when you buy and each time you
contribute to your policy, surrender the policy, reduce the face amount or
transfer policy account value among investment options. All charges are shown
on a guaranteed maximum basis. The current charges may be lower than the
guaranteed maximum for certain charges. Since the charges described in the
table below vary based on individual characteristics of the insured, these
charges may not be representative of the charge that you will pay. In
particular, the initial amount of surrender charge depends on each policy's
specific characteristics. Your financial professional can provide you with more
information about these charges as they relate to the insured's particular
characteristics. See "Deducting policy charges" under "More information about
certain policy charges."
-----------------------------------------------------------------------------------
TRANSACTION FEES
-----------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
-----------------------------------------------------------------------------------
PREMIUM CHARGE From each premium 6% of each premium/(1)/
SURRENDER (TURNING IN) Upon surrender Initial surrender charge
OF YOUR POLICY DURING per $1,000 of initial
ITS FIRST 10 YEARS OR base policy face amount
THE FIRST 10 YEARS AFTER or per $1,000 of
YOU HAVE REQUESTED AN requested base policy
INCREASE IN YOUR face amount
POLICY'S FACE AMOUNT/(3)/ increase:/(2)/
Highest: $47.91
Lowest: $10.96
Representative:
$19.21/(4)/
REQUEST A DECREASE IN Effective date of the decrease A pro rata portion of
YOUR POLICY'S FACE AMOUNT the charge that would
apply to a full
surrender at the time of
the decrease.
TRANSFERS AMONG Upon transfer $25 per transfer./(5)/
INVESTMENT OPTIONS
ADDING A LIVING BENEFITS At the time of the transaction $100 (if elected after
RIDER policy issue)
EXERCISE OF OPTION TO At the time of the transaction $250
RECEIVE A "LIVING
BENEFIT"
SPECIAL SERVICES CHARGES
. Wire transfer At the time of the transaction Current and Maximum
charge/(6)/ Charge: $90
. Express mail At the time of the transaction Current and Maximum
charge/(6)/ Charge: $35
. Policy illustration At the time of the transaction Current Charge: $0
charge/(7)/ Maximum Charge: $25
. Duplicate policy At the time of the transaction Current and Maximum
charge/(7)/ Charge: $35
. Policy history At the time of the transaction Current and Maximum
charge/(7)(8)/ Charge: $50
. Charge for returned At the time of the transaction Current and Maximum
payments/(7)/ Charge: $25
-----------------------------------------------------------------------------------
This table shows the fees and expenses that you will pay periodically during the
time that you own the Policy, not including underlying Trust portfolio fees and
expenses.
-----------------------------------------------------------------------------------
|
PERIODIC CHARGES OTHER
THAN UNDERLYING TRUST
PORTFOLIO OPERATING
EXPENSES
--------------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
--------------------------------------------------------------------------------------------------------
ADMINISTRATIVE Monthly (1)Policy Year
CHARGE/(9)/ Amount deducted
1 $20
2+ $15
--------------------------------------------------------------------------------------------------------
|
12
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
-----------------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING
TRUST PORTFOLIO OPERATING EXPENSES
-----------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED AMOUNT DEDUCTED
-----------------------------------------------------------------------------------------------------
plus
(2)Charge per $1,000 of the initial
base policy face amount and any
requested base policy face amount
increase that exceeds the highest
previous face amount:
Policy Years 1-10 (and any 10 year
period following a face amount
increase):
Highest: $0.30
Lowest: $0.06
Representative: $0.07/(4)/
COST OF INSURANCE CHARGE/(9)(10)/ Monthly Chargeper $1,000 of the amount for
which we are at risk:/(11)/
Highest:$83.34
Lowest:$0.06
Representative:$0.14/(12)/
|
MORTALITY AND EXPENSE RISK CHARGE Monthly Policy Year Annual % of
1-10 your value in
11+ our variable
investment
options
1.00%
0.50%
|
LOAN INTEREST SPREAD/(13)/ On each policy anniversary (or on loan 1%of loan amount.
termination, if earlier)
OPTIONAL RIDER CHARGES While the rider is in effect
CHILDREN'S TERM INSURANCE Monthly Charge per $1,000
of rider benefit
amount:
$0.50
DISABILITY DEDUCTION WAIVER Monthly Percentage of all
other monthly
charges:
Highest: 132%
Lowest: 7%
Representative:
12%/(12)/
DISABILITY PREMIUM WAIVER Monthly Charge for
disability premium
waiver per $1,000
of benefit for
which such rider is
purchased:/(14)/
Initial base
policy face
amount:/(15)/
Highest: $0.69
Lowest: $0.02
Representative:
$0.07/(12)/
Children's term
insurance:
Highest: $0.03
Lowest: $0.01
Representative:
$0.01/(12)/
Long Term Care
Services/SM/
Rider:
Highest: $0.02
Lowest: $0.0009
Representative:
$0.003/(12)/
LONG-TERM CARE SERVICES/SM/ Monthly Charge per $1,000
RIDER of the amount for
which we are at
risk:/(16)/
Highest: $1.18
Lowest: $0.08
Representative:
$0.22/(17)/
------------------------------------------------------------------------------------------
|
(1)Currently, we reduce this charge to 4% after an amount equal to two "target
premiums" has been paid. The "target premium" is actuarially determined for
each policy, based on that policy's specific characteristics, as well as the
policy's face amount, among other factors. If your policy includes the
accounting benefit endorsement, a portion of the deductions from premiums
will be refunded upon surrender within the first three policy years (see
"Accounting benefit endorsement" in "More information about policy features
and benefits" later in this prospectus). A similar charge applies to
premiums attributed to requested face amount increases that are above your
highest previous face amount.
(2)If your policy includes the accounting benefit endorsement, the surrender
charges are reduced (see "Accounting benefit endorsement" in "More
information about policy features and benefits" later in this prospectus).
(3)The surrender charge attributable to an increase in your policy's face
amount is in addition to any remaining surrender charge attributable to the
policy's initial face amount.
(4)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue or at the time of a requested face amount
increase, in the preferred non-tobacco user risk class.
(5)No charge, however, will ever apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any
transfer pursuant to our automatic transfer service or asset rebalancing
service as discussed later in this prospectus.
(6)Unless you specify otherwise, this charge will be deducted from the amount
you request.
13
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
(7)The charge for this service must be paid using funds outside of your policy.
Please see "Deducting policy charges" under "More information about certain
policy charges" for more information.
(8)The charge for this service may be less depending on the policy history you
request. Please see "Deducting policy charges" under "More information about
certain policy charges" for more information.
(9)Not applicable after the insured person reaches age 100.
(10)Insured persons who present particular health, occupational or vocational
risks may be charged other additional charges as specified in their
policies.
(11)Our amount "at risk" is the difference between the amount of death benefit
and the policy account value as of the deduction date.
(12)This representative amount is the rate we guarantee in the first policy
year for a representative insured male age 35 at issue in the preferred
non-tobacco user risk class.
(13)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
loan interest spread is the excess of the interest rate we charge over the
interest rate we credit.
(14)Amount charged equals the sum of disability premium waiver rider charges
corresponding to the base policy, any children's term insurance and/or any
Long Term Care Services/SM/ Rider that you have added to your policy and to
any base policy face amount increases.
(15)The monthly charges corresponding to the base policy will be adjusted
proportionately to any face amount reduction made at your request or
resulting from a partial withdrawal under death benefit Option A.
(16)Our amount "at risk" for this rider is the long-term care specified amount
minus your policy account value, but not less than zero.
(17)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue in the preferred non-tobacco user risk class.
You also bear your proportionate share of all fees and expenses paid by a
Portfolio that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses currently
charged by any of the Portfolios that you will pay periodically during the time
that you own the Policy. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. MORE DETAIL CONCERNING
EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE TRUST PROSPECTUS FOR
THAT PORTFOLIO.
---------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
---------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses (expenses that are
deducted from Portfolio assets including management fees, 12b-1 fees, service fees and/or Lowest Highest
other expenses)/(1)/ 0.58% 2.17%
---------------------------------------------------------------------------------------------------------
|
(1)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses. Pursuant to a contract, AXA Equitable
Funds Management Group, LLC has agreed to make payments or waive its
management, administrative and other fees to limit the expenses of certain
affiliated Portfolios through April 30, 2020 ("Expense Limitation
Arrangement") (unless the Trust's Board of Trustees consents to an earlier
revision or termination of this agreement). The Expense Limitation
Arrangement may be terminated by AXA Equitable Funds Management Group, LLC
at any time after April 30, 2020. The range of expenses in the table above
does not include the effect of any Expense Limitation Arrangement. The range
of expense in the table below includes the effect of the Expense Limitation
Arrangements.
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
--------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses after the effect of Expense Limitation Arrangements/(/*/)/ Lowest Highest
0.58% 2.02%
--------------------------------------------------------------------------------------------------------------------
|
(*)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses.
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
In your application for a policy, you tell us from which investment options you
want us to take the policy's monthly deductions as they fall due. You can
change these instructions at any time. If we cannot deduct the charge as your
most current instructions direct, we will allocate the deduction among your
investment options proportionately to your value in each. If the paid-up death
benefit guarantee is in effect, we will allocate the deduction among your
investment options proportionately to your value in each.
CHANGES IN CHARGES
We reserve the right in the future to (1) make a charge for certain taxes or
reserves set aside for taxes (see "Our taxes" under "Tax information" later in
this prospectus) that might be imposed on us; (2) make a charge for the
operating expenses of our variable investment options (including, without
limitation, SEC registration fees and related legal counsel fees and auditing
fees); or (3) change our other current policy charges (in no event will they
exceed the maximum charges guaranteed in your policy).
Any changes that we make in our current charges or charge rates will be on a
basis that is equitable to all policy holders of a given class, and will be
determined based on reasonable assumptions as to expenses, mortality, policy
and contract claims, taxes, investment income and lapses. Any changes in
charges may apply to then in force policies, as well as to new policies. You
will be notified in writing of any changes in charges under your policy.
14
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
3. Who is AXA Equitable?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
AXA Equitable Holdings, Inc. and its consolidated subsidiaries managed
approximately $618.6 billion in assets as of December 31, 2018. For more than
150 years AXA Equitable has been among the largest insurance companies in the
United States. We are licensed to sell life insurance and annuities in all
fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands. Our home office is located at 1290 Avenue of the Americas, New York,
NY 10104.
15
WHO IS AXA EQUITABLE?
HOW TO REACH US
To obtain (1) any forms you need for communicating with us, (2) unit values and
other values under your policy, and (3) any other information or materials that
we provide in connection with your policy or the Portfolios, you may
communicate with our Administrative Office as listed below for the purposes
described. Please refer to "Telephone and Internet requests" for effective
dates for processing telephone, Internet and fax requests, later in this
prospectus.
BY MAIL:
AT THE POST OFFICE BOX FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
P.O. Box 1047
Charlotte, North Carolina 28201-1047
BY EXPRESS DELIVERY ONLY:
AT THE STREET ADDRESS FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
8501 IBM Drive, Suite 150
Charlotte, North Carolina 28262-4333
1-704-341-7000 (for express delivery purposes only)
BY PHONE:
Monday through Thursday, 8:00 am to 7:00 pm and Friday, 8:00 am to 5:30 pm,
Eastern Time: 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of
the U.S.).
BY E-MAIL:
life-service@axa.us.com
BY FAX:
1-855-268-6378
BY INTERNET:
You may register for online account access at www.axa.com or us.axa.com for
those outside the U.S. Our website provides access to account information and
customer service. After registering, you can view account details, perform
certain transactions, print customer service forms and find answers to common
questions.
REQUIRED FORMS. We require that the following types of communications be on
specific forms we provide for that purpose:
(1)request for our automatic transfer service (our dollar cost averaging
service);
(2)request for our asset rebalancing service;
(3)transfers among Investment options (if submitted by e-mail);
(4)designation of new policy owner(s); and
(5)designation of new beneficiary(ies).
OTHER REQUESTS. We also have specific forms that we recommend you use for the
following:
(a)policy surrenders;
(b)transfers among investment options (not submitted by e-mail);
(c)changes in allocation percentages for premiums and deductions; and
(d)electing the paid up death benefit guarantee.
You can also change your allocation percentages, transfer among investment
options and/or change your address (1) by phone (2) over the Internet, through
axa.com or us.axa.com for those outside the U.S., or (3) by writing our
Administrative Office. For more information about transaction requests you can
make by phone or over the Internet, see "How to make transfers" and "Telephone
and Internet requests" later in this prospectus. In the future, we may require
that certain requests be completed over the Internet.
Certain methods of contacting us, such as by telephone or electronically, may
be unavailable or delayed (for example our fax service may not be available at
all times and/or we may be unavailable due to emergency closing). In addition,
the level and type of service available may be restricted based on criteria
established by us.
We reserve the right to limit access to these services if we determine that you
are engaged in a disruptive transfer activity, such as "market timing." (See
"Disruptive transfer activity" in "More information about other matters.")
FORMAL REQUIREMENTS. Except for properly authorized telephone or Internet
transactions, any notice or request that does not use our standard form must be
in writing. It must be dated and signed by you and should also specify your
name, title (if applicable), the insured person's name (if different), your
policy number and adequate details about the notice you wish to give or other
action you wish us to take. We may require you to return your policy to us
before we make certain policy changes that you may request.
The proper person to sign forms, notices and requests would normally be the
owner or any other person that our procedures permit to exercise the right or
privilege in question. If there are joint owners all must sign. Any irrevocable
beneficiary or assignee that we have on our records also must sign certain
types of requests.
You should send all requests, notices and payments to our Administrative Office
at the addresses specified above. We will also accept requests and notices by
fax at the above number, if we believe them to be genuine. We reserve the
right, however, to require an original signature before acting on any faxed
item. You must send premium payments after the first one to our Administrative
Office at the above addresses; except that you should send any premiums for
which we have billed you to the address on the billing notice.
EDELIVERY
You can register to receive statements and other documents electronically. You
can do so by visiting our website at www.axa.com.
ABOUT OUR SEPARATE ACCOUNT FP
Each variable investment option is a part (or "subaccount") of our Separate
Account FP. We established Separate Account FP under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable investment
options for owners of our variable
16
WHO IS AXA EQUITABLE?
life insurance policies. We are the legal owner of all of the assets in
Separate Account FP and may withdraw any amounts that exceed our reserves and
other liabilities with respect to variable investment options under our
policies. For example, we may withdraw amounts from Separate Account FP that
represent our investments in Separate Account FP or that represent fees and
charges under the policies that we have earned. Income, gains and losses
credited to, or charged against Separate Account FP reflect its own investment
experience and not the investment experience of AXA Equitable's other assets.
Separate Account FP is registered with the SEC under the Investment Company Act
of 1940 and is registered and classified under that act as a "unit investment
trust." The SEC, however, does not manage or supervise AXA Equitable or
Separate Account FP. Although the Separate Account is registered, the SEC does
not monitor the activity of Separate Account FP on a daily basis. AXA Equitable
is not required to register, and is not registered, as an investment company
under the Investment Company Act of 1940.
Each subaccount (variable investment option) of Separate Account FP available
under Incentive Life(R) '06 invests solely in the applicable class of shares
issued by the corresponding Portfolio of the applicable Trust. Separate Account
FP immediately reinvests all dividends and other distributions it receives from
a Portfolio in additional shares of that class in that Portfolio.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable life insurance and/or annuity products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policy owners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policy owners, we
will see to it that appropriate action is taken to do so.
YOUR VOTING PRIVILEGES
VOTING OF PORTFOLIO SHARES. As the legal owner of any Portfolio shares that
support a variable investment option, we will attend (and have the right to
vote at) any meeting of shareholders of the Portfolio (or the Trusts). To
satisfy currently-applicable legal requirements, however, we will give you the
opportunity to tell us how to vote the number of each Portfolio's shares that
are attributable to your policy. The number of full and fractional votes you
are entitled to will be determined by dividing the policy account value (minus
any policy indebtedness) allocable to an investment option by the net asset
value per unit for the Portfolio underlying that investment option. We will
vote shares attributable to policies for which we receive no instructions in
the same proportion as the instructions we do receive from all policies that
participate in our Separate Account FP (discussed below). With respect to any
Portfolio shares that we are entitled to vote directly (because we do not hold
them in a separate account or because they are not attributable to policies),
we will vote in proportion to the instructions we have received from all
holders of variable annuity and variable life insurance policies who are using
that Portfolio. One effect of proportional voting is that a small number of
policy owners may control the outcome of a vote.
Under current legal requirements, we may disregard the voting instructions we
receive from policy owners only in certain narrow circumstances prescribed by
SEC regulations. If we do, we will advise you of the reasons in the next annual
or semiannual report we send to you.
VOTING AS POLICY OWNER. In addition to being able to instruct voting of
Portfolio shares as discussed above, policy owners that use our variable
investment options may in a few instances be called upon to vote on matters
that are not the subject of a shareholder vote being taken by any Portfolio. If
so, you will have one vote for each $100 of policy account value in any such
option; and we will vote our interest in Separate Account FP in the same
proportion as the instructions we receive from holders of Incentive Life(R) '06
and other policies that Separate Account FP supports.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
17
WHO IS AXA EQUITABLE?
4. About the Portfolios of the Trusts
We offer both affiliated and unaffiliated Trusts, which in turn offer one or
more Portfolios. AXA Equitable Funds Management Group, LLC ("AXA FMG"), a
wholly owned subsidiary of AXA Equitable, serves as the investment adviser of
the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some
affiliated Portfolios, AXA FMG has entered into sub-advisory agreements with
one or more other investment advisers (the "sub-advisers") to carry out
investment decisions for the Portfolios. As such, among other responsibilities,
AXA FMG oversees the activities of the sub-advisers with respect to the
affiliated Trusts and is responsible for retaining or discontinuing the
services of those sub-advisers. The chart below indicates the sub-adviser(s)
for each Portfolio, if any. The chart below also shows the currently available
Portfolios and their investment objectives.
You should be aware that AXA Advisors, LLC and AXA Distributors, LLC (together,
the "Distributors") directly or indirectly receive 12b-1 fees from affiliated
Portfolios for providing certain distribution and/or shareholder support
services. These fees will not exceed 0.25% of the Portfolios' average daily net
assets. The affiliated Portfolios' sub-advisers and/or their affiliates may
also contribute to the cost of expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the sub-advisers'
respective Portfolios. In addition, AXA FMG, a wholly owned subsidiary of AXA
Equitable, receives management fees and administrative fees in connection with
the services it provides to the Portfolios. As such, it may be more profitable
for us to offer affiliated Portfolios than to offer unaffiliated Portfolios.
AXA Equitable or the Distributors may directly or indirectly receive 12b-1 fees
and additional payments from certain unaffiliated Portfolios, their advisers,
sub-advisers, distributors or affiliates, for providing certain administrative,
marketing, distribution and/or shareholder support services. These fees and
payments range from 0% to 0.60% of the unaffiliated Portfolios' average daily
net assets. The Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
Portfolios.
As a policy owner, you may bear the costs of some or all of these fees and
payments through your indirect investment in the Portfolios. (See the
Portfolios' prospectuses for more information.) These fees and payments, as
well as the Portfolios' investment management fees and administrative expenses,
will reduce the underlying Portfolios' investment returns. AXA Equitable may
profit from these fees and payments. AXA Equitable considers the availability
of these fees and payment arrangements during the selection process for the
underlying Portfolios. These fees and payment arrangements may create an
incentive for us to select Portfolios (and classes of shares of Portfolios)
that pay us higher amounts.
Some affiliated Portfolios invest in other affiliated Portfolios (the "EQ Fund
of Fund Portfolios"). The EQ Fund of Fund Portfolios offer policy owners a
convenient opportunity to invest in other Portfolios that are managed and have
been selected for inclusion in the EQ Fund of Fund Portfolios by AXA FMG. AXA
Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the
benefits of such Portfolios to policy owners and/or suggest that policy owners
consider whether allocating some or all of their account value to such
Portfolios is consistent with their desired investment objectives. In doing so,
AXA Equitable, and/or its affiliates, may be subject to conflicts of interest
insofar as AXA Equitable may derive greater revenues from the EQ Fund of Fund
Portfolios than certain other Portfolios available to you under your policy.
Please see "Allocating your contributions" later in this section for more
information about your role in managing your allocations.
As described in more detail in the Portfolio prospectuses, the EQ Managed
Volatility Portfolios may utilize a proprietary volatility management strategy
developed by AXA FMG (the "EQ volatility management strategy") and, in
addition, certain EQ Fund of Fund Portfolios may invest in affiliated
Portfolios that utilize this strategy. The EQ volatility management strategy
uses futures and options, such as exchange-traded futures and options contracts
on securities indices, to reduce the Portfolio's equity exposure during periods
when certain market indicators indicate that market volatility is above
specific thresholds set for the Portfolio. When market volatility is increasing
above the specific thresholds set for a Portfolio utilizing the EQ volatility
management strategy, the adviser of the Portfolio may reduce equity exposure.
Although this strategy is intended to reduce the overall risk of investing in
the Portfolio, it may not effectively protect the Portfolio from market
declines and may increase its losses. Further, during such times, the
Portfolio's exposure to equity securities may be less than that of a
traditional equity portfolio. This may limit the Portfolio's participation in
market gains and result in periods of underperformance, including those periods
when the specified benchmark index is appreciating, but market volatility is
high.
The EQ Managed Volatility Portfolios that include the EQ volatility management
strategy as part of their investment objective and/or principal investment
strategy, and the EQ Fund of Fund Portfolios that invest in other Portfolios
that use the EQ volatility management strategy, are identified below in the
chart by a "(check mark) " under the column entitled "Volatility Management."
Portfolios that utilize the EQ volatility management strategy (or, in the case
of certain EQ Fund of Fund Portfolios, invest in other Portfolios that use the
EQ volatility management strategy) are designed to reduce the overall
volatility of your account value and provide you with risk-adjusted returns
over time. During rising markets, the EQ volatility management strategy,
however, could result in your account value rising less than would have been
the case had you been invested in a Portfolio that does not utilize the EQ
volatility management strategy or, in the case of the EQ Fund of Fund
Portfolios, that invest exclusively in other Portfolios that do not use the
volatility management strategy. Conversely, investing in investment options
that feature a managed-volatility strategy may be helpful in a declining market
when high market volatility triggers a reduction in the investment option's
equity exposure because during these periods of high volatility, the risk of
losses from investing in equity securities may increase. In these instances,
your account value may decline less than would have been the case had you not
been invested in investment options that feature a volatility management
strategy.
18
ABOUT THE PORTFOLIOS OF THE TRUSTS
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the EQ volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
differ from the EQ volatility management strategy. Any such unaffiliated
Portfolio is not identified under "Volatility Management" below in the chart.
Such techniques could also impact your account value in the same manner
described above. Please see the Portfolio prospectuses for more information
about the Portfolios' objective and strategies.
Portfolio allocations in certain AXA variable annuity contracts with guaranteed
benefits are subject to our Asset Transfer Program (ATP) feature. The ATP helps
us manage our financial exposure in connection with providing certain
guaranteed benefits, by using predetermined mathematical formulas to move
account value between the EQ/Ultra Conservative Strategy Portfolio (an
investment option utilized solely by the ATP) and the other Portfolios offered
under those contracts. You should be aware that operation of the predetermined
mathematical formulas underpinning the ATP has the potential to adversely
impact the Portfolios, including their performance, risk profile and expenses.
This means that Portfolio investments in contracts with no ATP feature, such as
yours, could still be adversely impacted. Particularly during times of high
market volatility, if the ATP triggers substantial asset flows into and out of
a Portfolio, it could have the following effects on all contract owners
invested in that Portfolio:
(a)By requiring a Portfolio sub-adviser to buy and sell large amounts of
securities at inopportune times, a Portfolio's investment performance and
the ability of the sub-adviser to fully implement the Portfolio's
investment strategy could be negatively affected; and
(b)By generating higher turnover in its securities or other assets than it
would have experienced without being impacted by the ATP, a Portfolio
could incur higher operating expense ratios and transaction costs than
comparable funds. In addition, even Portfolios structured as
funds-of-funds that are not available for investment by contract owners
who are subject to the ATP could also be impacted by the ATP if those
Portfolios invest in underlying funds that are themselves subject to
significant asset turnover caused by the ATP. Because the ATP formulas
generate unique results for each contract, not all contract owners who
are subject to the ATP will be affected by operation of the ATP in the
same way. On any particular day on which the ATP is activated, some
contract owners may have a portion of their account value transferred to
the EQ/Ultra Conservative Strategy Portfolio investment option and others
may not. If the ATP causes significant transfers of total account value
out of one or more Portfolios, any resulting negative effect on the
performance of those Portfolios will be experienced to a greater extent
by a contract owner (with or without the ATP) invested in those
Portfolios whose account value was not subject to the transfers.
PORTFOLIOS OF THE TRUSTS
--------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP
TRUST
CLASS B SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Seeks to achieve high total return through . AXA Equitable Funds Management
MULTI-SECTOR BOND a combination of current income and Group, LLC
capital appreciation.
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP GROWTH capital. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP VALUE capital. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(1)/ appreciation. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/CONSERVATIVE Seeks to achieve a high level of current . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(2)/ income. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
Seeks to achieve current income and . AXA Equitable Funds Management (check mark)
EQ/CONSERVATIVE-PLUS growth of capital, with a greater Group, LLC
ALLOCATION/(*)(3)/ emphasis on current income.
--------------------------------------------------------------------------------------------------------------------------
EQ/MODERATE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(4)/ appreciation and current income. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/MODERATE-PLUS Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(5)/ appreciation and current income, with a Group, LLC
greater emphasis on capital appreciation.
--------------------------------------------------------------------------------------------------------------------------
TARGET 2025 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
--------------------------------------------------------------------------------------------------------------------------
TARGET 2035 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
--------------------------------------------------------------------------------------------------------------------------
|
19
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP
TRUST
CLASS B SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
TARGET 2045 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
----------------------------------------------------------------------------------------------------------------------
TARGET 2055 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
|
----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
1290 VT CONVERTIBLE Seeks a high level of total return. . AXA Equitable Funds Management
SECURITIES Group, LLC
. Palisade Capital Management, L.L.C.
----------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to achieve total return from long- . AXA Equitable Funds Management
DYNAMIC ALLOCATION term capital appreciation and income. Group, LLC
. DoubleLine Capital LP
----------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to maximize current income and . AXA Equitable Funds Management
OPPORTUNISTIC BOND total return. Group, LLC
. DoubleLine Capital LP
----------------------------------------------------------------------------------------------------------------------
1290 VT EQUITY Seeks a combination of growth and . AXA Equitable Funds Management
INCOME income to achieve an above-average and Group, LLC
consistent total return. . Barrow, Hanley, Mewhinney & Strauss
LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO Seeks to achieve capital appreciation. . AXA Equitable Funds Management
MERGERS & Group, LLC
ACQUISITIONS . GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO SMALL Seeks to maximize capital appreciation. . AXA Equitable Funds Management
COMPANY VALUE Group, LLC
. GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT SMARTBETA Seeks to achieve long-term capital . AXA Equitable Funds Management
EQUITY appreciation. Group, LLC
. AXA Rosenberg Investment
Management, LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT SOCIALLY Seeks to achieve long-term capital . AXA Equitable Funds Management
RESPONSIBLE appreciation. Group, LLC
. BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - Seeks long-term capital appreciation and . AXA Equitable Funds Management
ALT 20 current income. Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/400 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(6)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/500 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(7)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
|
20
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------------
EQ/2000 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(8)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/AB SMALL CAP Seeks to achieve long-term growth of . AllianceBernstein L.P.
GROWTH/(*)(9)/ capital. . AXA Equitable Funds Management
Group, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/AMERICAN CENTURY Seeks to achieve long-term capital . American Century Investment
MID CAP VALUE growth. Income is a secondary objective. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC Seeks to achieve capital appreciation and . AXA Equitable Funds Management
VALUE EQUITY secondarily, income. Group, LLC
. BlackRock Investment Management, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of . AXA Equitable Funds Management
RESEARCH capital. Group, LLC
. Capital Guardian Trust Company
------------------------------------------------------------------------------------------------------------------------
EQ/CLEARBRIDGE Seeks to achieve long-term capital . AXA Equitable Funds Management
LARGE CAP growth. Group, LLC
GROWTH/(*)(10)/ . ClearBridge Investments, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 3000(R) Group, LLC
Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 3000(R) Index.
------------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX Seeks to achieve a total return before . AXA Equitable Funds Management
expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays U.S. . SSgA Funds Management, Inc.
Intermediate Government/Credit Bond
Index, including reinvestment of dividends,
at a risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government/Credit Bond Index.
------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total . AXA Equitable Funds Management
return performance of the Standard & Group, LLC
Poor's 500 Composite Stock Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Standard & Poor's 500 Composite Stock
Index.
------------------------------------------------------------------------------------------------------------------------
EQ/FIDELITY Seeks to achieve long-term capital . AXA Equitable Funds Management
INSTITUTIONAL appreciation. Group, LLC
AM(R) LARGE CAP . FIAM LLC
------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN RISING Seeks long-term capital appreciation. . AXA Equitable Funds Management
DIVIDENDS Preservation of capital, while not a goal, Group, LLC
is also an important consideration. . Franklin Advisory Services, LLC
------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN Seeks a high level of current income. A . AXA Equitable Funds Management
STRATEGIC INCOME secondary goal is long-term capital Group, LLC
appreciation. . Franklin Mutual Advisers, LLC
------------------------------------------------------------------------------------------------------------------------
|
21
ABOUT THE PORTFOLIOS OF THE TRUSTS
-------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL BOND PLUS Seeks to achieve capital growth and . AXA Equitable Funds Management
current income. Group, LLC
. BlackRock Investment Management, LLC
. Wells Capital Management, Inc. and
. Wells Fargo Asset Management
(International) LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL EQUITY Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk- Group, LLC
VOLATILITY/(*)(11)/ adjusted returns and managing volatility . BlackRock Investment Management, LLC
in the Portfolio. . Morgan Stanley Investment
Management Inc.
. OppenheimerFunds, Inc.
-------------------------------------------------------------------------------------------------------------------------
EQ/GOLDMAN SACHS Seeks to achieve long-term capital . AXA Equitable Funds Management
MID CAP VALUE appreciation. Group, LLC
. Goldman Sachs Asset Management, L.P.
-------------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Seeks to achieve a total return before . AXA Equitable Funds Management
GOVERNMENT BOND expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays . SSgA Funds Management, Inc.
U.S. Intermediate Government Bond Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government Bond Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
CORE MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(12)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . EARNEST Partners, LLC
. Federated Global Investment
Management Corp.
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
-------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve a total return (before . AllianceBernstein L.P.
EQUITY INDEX expenses) that approximates the total . AXA Equitable Funds Management
return performance of a composite index Group, LLC
comprised of 40% DJ Euro STOXX 50
Index, 25% FTSE 100 Index, 25% TOPIX
Index, and 10% S&P/ASX 200 Index,
including reinvestment of dividends, at a
risk level consistent with that of the
composite index.
-------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(13)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to provide current income and long- . AXA Equitable Funds Management (check mark)
VALUE MANAGED term growth of income, accompanied by Group, LLC
VOLATILITY/(*)(14)/ growth of capital with an emphasis on . BlackRock Investment Management, LLC
risk-adjusted returns and managing . Harris Associates L.P.
volatility in the Portfolio.
-------------------------------------------------------------------------------------------------------------------------
|
22
ABOUT THE PORTFOLIOS OF THE TRUSTS
-----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK Seeks to achieve capital growth and . AXA Equitable Funds Management
income. Group, LLC
. Invesco Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
EQ/INVESCO GLOBAL Seeks to achieve total return through . AXA Equitable Funds Management
REAL ESTATE growth of capital and current income. Group, LLC
. Invesco Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
EQ/INVESCO Seeks to achieve long-term growth of . AXA Equitable Funds Management
INTERNATIONAL capital. Group, LLC
GROWTH . Invesco Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
EQ/IVY ENERGY Seeks to provide capital growth and . AXA Equitable Funds Management
appreciation. Group, LLC
. Ivy Investment Management Company
-----------------------------------------------------------------------------------------------------------------------
EQ/IVY MID CAP Seeks to provide growth of capital. . AXA Equitable Funds Management
GROWTH Group, LLC
. Ivy Investment Management Company
-----------------------------------------------------------------------------------------------------------------------
EQ/IVY SCIENCE AND Seeks to provide growth of capital. . AXA Equitable Funds Management
TECHNOLOGY Group, LLC
. Ivy Investment Management Company
-----------------------------------------------------------------------------------------------------------------------
EQ/JANUS Seeks to achieve capital growth. . AXA Equitable Funds Management
ENTERPRISE/(*)(15)/ Group, LLC
. Janus Capital Management LLC
-----------------------------------------------------------------------------------------------------------------------
EQ/JPMORGAN VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management
OPPORTUNITIES appreciation. Group, LLC
. J.P. Morgan Investment
Management Inc.
-----------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP CORE Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(16)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . Capital Guardian Trust Company
. Thornburg Investment Management,
Inc.
. Vaughan Nelson Investment Management
-----------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Growth Index, including reinvestment of
dividends at a risk level consistent with
the Russell 1000(R) Growth Index.
-----------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to provide long-term capital growth . AXA Equitable Funds Management (check mark)
MANAGED with an emphasis on risk-adjusted returns Group, LLC
VOLATILITY/(*)(17)/ and managing volatility in the Portfolio. . BlackRock Investment Management, LLC
. HS Management Partners, LLC
. Loomis, Sayles & Company, L.P.
. Polen Capital Management, LLC
. T. Rowe Price Associates, Inc.
-----------------------------------------------------------------------------------------------------------------------
|
23
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Value Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 1000(R) Value Index.
---------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(18)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD EMERGING Seeks to achieve long-term capital . AXA Equitable Funds Management
MARKETS EQUITY appreciation. Group, LLC
. Lazard Asset Management LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/LOOMIS SAYLES Seeks to achieve capital appreciation. . AXA Equitable Funds Management
GROWTH/(*)(19)/ Group, LLC
. Loomis, Sayles & Company, L.P.
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
GROWTH . Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS(R) Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
VALUE . Massachusetts Financial Services
Company
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total return . AXA Equitable Funds Management
performance of the Standard & Poor's Group, LLC
MidCap 400(R) Index, including reinvestment
of dividends, at a risk level consistent with
that of the Standard & Poor's MidCap 400
Index.
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk Group, LLC
VOLATILITY/(*)(20)/ adjusted returns and managing volatility . BlackRock Investment Management, LLC
in the Portfolio. . Diamond Hill Capital Management,
Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET/(+)/ Seeks to obtain a high level of current . AXA Equitable Funds Management
income, preserve its assets and maintain Group, LLC
liquidity. . The Dreyfus Corporation
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks to achieve maximum real return, . AXA Equitable Funds Management
consistent with preservation of capital Group, LLC
and prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------------
|
24
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------
EQ/PIMCO TOTAL Seeks to achieve maximum total return, . AXA Equitable Funds Management
RETURN consistent with preservation of capital Group, LLC
and prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA Seeks to generate a return in excess of . AXA Equitable Funds Management
SHORT BOND traditional money market products while Group, LLC
maintaining an emphasis on preservation . Pacific Investment Management
of capital and liquidity. Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/QUALITY BOND PLUS Seeks to achieve high current income . AllianceBernstein L.P.
consistent with moderate risk to capital. . AXA Equitable Funds Management
Group, LLC
. Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY Seeks to replicate as closely as possible . AllianceBernstein L.P.
INDEX (before expenses) the total return of the . AXA Equitable Funds Management
Russell 2000(R) Index. Group, LLC
---------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE Seeks to achieve long-term capital . AXA Equitable Funds Management
GROWTH STOCK appreciation and secondarily, income. Group, LLC
. T. Rowe Price Associates, Inc.
---------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND Seeks to achieve total return through . AXA Equitable Funds Management
INCOME capital appreciation with income as a Group, LLC
secondary consideration. . UBS Asset Management (Americas) Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
AGGRESSIVE EQUITY capital. . AXA Equitable Funds Management
Group, LLC
. ClearBridge Investments, LLC
. Scotia Institutional Asset
Management US, Ltd.
. T. Rowe Price Associates, Inc.
. Westfield Capital Management
Company, L.P.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER CORE Seeks to achieve a balance of high current . AXA Equitable Funds Management
BOND income and capital appreciation, Group, LLC
consistent with a prudent level of risk. . BlackRock Financial Management, Inc.
. DoubleLine Capital LP
. Pacific Investment Management
Company LLC
. SSgA Funds Management, Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . AllianceBernstein L.P.
CAP GROWTH capital. . AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Franklin Advisers, Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------
|
25
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . American Century Investment
CAP VALUE capital. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Diamond Hill Capital Management,
Inc.
---------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
TECHNOLOGY capital. . Allianz Global Investors U.S. LLC
. AXA Equitable Funds Management
Group, LLC
. Wellington Management Company, LLP
|
------------------------------------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE FUNDS
(INVESCO VARIABLE
INSURANCE
FUNDS) -- SERIES II INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
INVESCO V.I. MID The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP CORE EQUITY capital.
FUND
------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP EQUITY FUND capital.
------------------------------------------------------------------------------------------------------------
|
-------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS
INSURANCE SERIES(R)
PORTFOLIO NAME -- INVESTMENT ADVISER (AND
CLASS 4 SHARES OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
GLOBAL SMALL The fund's investment objective is to provide long-term . Capital Research and
CAPITALIZATION growth of capital. Management Company
FUND
-------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital Research and
appreciation. Management Company
|
-------------------------------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE INSURANCE
PRODUCTS (VIP) -
SERVICE CLASS 2 INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks high total return through a combination of current . Fidelity Management &
GROWTH & INCOME income and capital appreciation. Research Company (FMR)
PORTFOLIO
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID Seeks long-term growth of capital. . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
-------------------------------------------------------------------------------------------------------------
|
----------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE INSURANCE
PRODUCTS TRUST --
CLASS 2 INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------
FRANKLIN MUTUAL Seeks capital appreciation. Its secondary goal is income. . Franklin Mutual Advisers,
SHARES VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
FRANKLIN SMALL CAP Seeks long-term total return. . Franklin Mutual Advisers,
VALUE VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
TEMPLETON Seeks long-term capital appreciation. . Templeton Asset
DEVELOPING Management Ltd.
MARKETS VIP FUND
----------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with preservation of . Franklin Advisers, Inc.
BOND VIP FUND capital. Capital appreciation is a secondary consideration.
----------------------------------------------------------------------------------------------------------------
TEMPLETON GROWTH Seeks long-term capital growth. . Templeton Global Advisors
VIP FUND Limited
|
-------------------------------------------------------------------------------------------------------------
IVY VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
IVY VIP HIGH INCOME To seek to provide total return through a combination of . Ivy Investment Management
high current income and capital appreciation. Company (IICO)
-------------------------------------------------------------------------------------------------------------
IVY VIP SMALL CAP To seek to provide growth of capital. . Ivy Investment Management
GROWTH Company (IICO)
|
26
ABOUT THE PORTFOLIOS OF THE TRUSTS
--------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE TRUSTS --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS The fund's investment objective is to seek capital . Massachusetts Financial
TRUST SERIES appreciation. Services Company
--------------------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital . Massachusetts Financial
MASSACHUSETTS appreciation. Services Company
INVESTORS GROWTH
STOCK PORTFOLIO
--------------------------------------------------------------------------------------------------------
|
PIMCO VARIABLE
INSURANCE TRUST --
ADVISOR CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
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PIMCO Seeks to achieve maximum real return consistent with . Pacific Investment
COMMODITYREALRETURN(R) prudent investment management. Management Company LLC
STRATEGY PORTFOLIO
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T. ROWE PRICE
EQUITY SERIES, INC. INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
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T. ROWE PRICE Seeks a high level of dividend income and long-term . T. Rowe Price Associates,
EQUITY INCOME capital growth primarily through investments in stocks. Inc.
PORTFOLIO - II
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VANECK VIP TRUST --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
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VANECK VIP GLOBAL Seeks long-term capital appreciation by investing . Van Eck Associates
HARD ASSETS FUND primarily in hard asset securities. Income is a secondary Corporation
consideration.
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(+)The Portfolio operates as a "government money market fund." The Portfolio
will invest at least 99.5% of its total assets in U.S. government
securities, cash, and/or repurchase agreements that are fully collateralized
by U.S. government securities or cash.
(*)The chart below reflects the variable investment option's name in effect
until on or about May 20, 2019. The number in the "FN" column corresponds
with the number contained in the table above.
-------------------------------------------------
FN VARIABLE INVESTMENT OPTION NAME
-------------------------------------------------
(1) AXA Aggressive Allocation
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(2) AXA Conservative Allocation
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(3) AXA Conservative-Plus Allocation
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(4) AXA Moderate Allocation
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(5) AXA Moderate-Plus Allocation
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(6) AXA 400 Managed Volatility
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(7) AXA 500 Managed Volatility
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(8) AXA 2000 Managed Volatility
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(9) AXA/AB Small Cap Growth
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(10) AXA/ClearBridge Large Cap Growth
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(11) AXA Global Equity Managed Volatility
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(12) AXA International Core Managed Volatility
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(13) AXA International Managed Volatility
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(14) AXA International Value Managed Volatility
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(15) AXA/Janus Enterprise
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(16) AXA Large Cap Core Managed Volatility
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(17) AXA Large Cap Growth Managed Volatility
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(18) AXA Large Cap Value Managed Volatility
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(19) AXA/Loomis Sayles Growth
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(20) AXA Mid Cap Value Managed Volatility
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YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF THE TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.).
27
ABOUT THE PORTFOLIOS OF THE TRUSTS
5. Determining your policy's value
YOUR POLICY ACCOUNT VALUE
As set forth earlier in this prospectus, we deduct certain charges from each
premium payment you make. We credit the rest of each premium payment to your
"policy account value." You instruct us to allocate your policy account value
to one or more of the policy's investment options indicated on the front cover
of this prospectus.
Your policy account value is the total of (i) your amounts in our variable
investment options, (ii) your amounts in our guaranteed interest option (other
than in (iii)), and (iii) any amounts that we are holding to secure policy
loans that you have taken (including any interest on those amounts which has
not yet been allocated to the variable investment options). See "Borrowing from
your policy" later in this prospectus. Your "net policy account value" is the
total of (i) and (ii) above, plus any interest credited on loaned amounts,
minus any interest accrued on outstanding loans and minus any "restricted"
amounts that we hold in the guaranteed interest option as a result of any
payment received under a living benefits rider. (Your policy and other
supplemental material may refer to the account that holds the amounts in
(ii) and (iii) above as our "Guaranteed Interest Account.") Your policy account
value is subject to certain charges discussed in "Risk/benefit summary: Charges
and expenses you will pay" earlier in this prospectus.
YOUR POLICY ACCOUNT VALUE WILL BE CREDITED WITH THE SAME RETURNS AS ARE
ACHIEVED BY THE PORTFOLIOS THAT YOU SELECT AND INTEREST CREDITED ON AMOUNTS IN
THE GUARANTEED INTEREST OPTION, AND IS REDUCED BY THE AMOUNT OF CHARGES WE
DEDUCT UNDER THE POLICY.
YOUR POLICY'S VALUE IN OUR VARIABLE INVESTMENT OPTIONS. We invest the policy
account value that you have allocated to any variable investment option in
shares of the corresponding Portfolio. Your value in each variable investment
option is measured by "units."
The number of your units in any variable investment option does not change,
absent an event or transaction under your policy that involves moving assets
into or out of that option. Whenever any amount is withdrawn or otherwise
deducted from one of your policy's variable investment options, we "redeem"
(cancel) the number of units that has a value equal to that amount. This can
happen, for example, when all or a portion of monthly deductions and
transaction-based charges are allocated to that option, or when loans,
transfers, withdrawals and surrenders are made from that option. Similarly, you
"purchase" additional units having the same value as the amount of any premium,
loan repayment, or transfer that you allocate to that option.
The value of each unit will increase or decrease each business day, as though
you had invested in the corresponding Portfolio's shares directly (and
reinvested all dividends and distributions from the Portfolio in additional
Portfolio shares). On any day, your value in any variable investment option
equals the number of units credited to your policy under that option,
multiplied by that day's value for one such unit. The mortality and expense
risk charge mentioned earlier in this prospectus is calculated as a percentage
of the value you have in the variable investment options and deducted monthly
from your policy account based on your deduction allocations.
YOUR POLICY'S VALUE IN OUR GUARANTEED INTEREST OPTION. Your policy's value in
our guaranteed interest option includes: (i) any amounts that have been
allocated to that option, based on your request, and (ii) any "restricted"
amounts that we hold in that option as a result of your election to receive a
living benefit. See "Your option to receive a terminal illness living benefit"
later in this prospectus. We credit all of such amounts with interest at rates
we declare from time to time. We guarantee that these rates will not be less
than a 2% effective annual rate.
Amounts may be allocated to or removed from your policy's value in our
guaranteed interest option for the same purposes as described earlier in this
prospectus for the variable investment options. We credit your policy with a
number of dollars in that option that equals any amount that is being allocated
to it. Similarly, if amounts are being removed from your guaranteed interest
option for any reason, we reduce the amount you have credited to that option on
a dollar-for-dollar basis.
28
DETERMINING YOUR POLICY'S VALUE
6. Transferring your money among our investment options
TRANSFERS YOU CAN MAKE
YOU CAN TRANSFER AMONG OUR VARIABLE INVESTMENT OPTIONS AND INTO OUR GUARANTEED
INTEREST OPTION.
After your policy's Allocation Date, you can transfer amounts from one
investment option to another. Unless the paid up death benefit guarantee is in
effect, there are no restrictions on transfers into the guaranteed interest
option. However, transfers out of the guaranteed interest option and among our
variable investment options are more limited. Currently, the total of all
transfers you make on the same day must be at least $500; except that you may
transfer your entire balance in an investment option, even if it is less than
$500. We reserve the right to lower this $500 limit upon written notice to you.
We also reserve the right to restrict transfers among variable investment
options and transfers out of the guaranteed interest option as described in
your policy, including limitations on the number, frequency, or dollar amount
of transfers.
Certain transfer restrictions apply if the paid up death benefit guarantee is
in effect. For more information, see "Paid up death benefit guarantee" in "More
information about policy features and benefits." If your policy is placed on
loan extension, we will transfer any remaining policy account value in the
variable investment options to the guaranteed interest option. No transfers
from the guaranteed interest option are permitted thereafter.
Please see "Investment options within your policy" in "Risk/benefit summary:
Policy features, benefits and risks" for more information about your role in
managing your allocations.
CURRENT UNRESTRICTED TRANSFERS OUT OF THE GUARANTEED INTEREST OPTION. We are
relaxing our policy rules so that, beginning on the business day after the
Allocation Date and thereafter, you may transfer any amount of unloaned policy
account value out of the guaranteed interest option to any other investment
option until further notice. If we decide to change our limitations on
transfers out of the guaranteed interest option, we will provide you with
notice of at least 30 days.
See the "How to make transfers" section below on how you can request a
transfer. In general, transfers take effect on the date the request is
received. However, any written, telephone, Internet or facsimile transaction
requests received after 4:00 p.m. (Eastern Time) take effect the next business
day.
Please note that the ability to make unrestricted transfers from the guaranteed
interest option does not apply to any amounts that we are holding as collateral
for a policy loan or as "restricted" amounts as a result of your election to
receive a living benefit, if available under your policy. Finally, there may be
a charge for making this transfer. Please see "Risk/benefit summary: Charges
and expenses you will pay" earlier in this prospectus for more information
about charges for this transfer.
If the policy is on loan extension, transfers out of the guaranteed interest
option are not permitted.
DISRUPTIVE TRANSFER ACTIVITY. We reserve the right to limit access to the
services described below if we determine that you are engaged in a disruptive
transfer activity, such as "market timing" (see "Disruptive transfer activity"
in "More information about other matters").
HOW TO MAKE TRANSFERS
INTERNET TRANSFERS. Generally, you can make transfers over the Internet if you
are the owner of the policy. You may do this by visiting our axa.com or
us.axa.com (for those outside the U.S.) websites and registering for online
account access. This service may not always be available. The restrictions
relating to transfers are described below.
ONLINE TRANSFERS. You can make online transfers by following one of two
procedures:
. For individually owned policies for which you are the owner, by logging
onto our website, described under "By Internet" in "How to reach us"
earlier in this prospectus; or
. For corporation and trust owned policies, we require a special
authorization form to obtain access. The form is available on our website
www.axa.us.com or us.axa.com for those outside the U.S., or by contacting
our Administrative Office.
For more information, see "Telephone and Internet requests" later in this
prospectus. We allow only one request for transfers each day (although that
request can cover multiple transfers). If you are unable to reach us via our
website, you should send a written transfer request to our Administrative
Office.
TRANSFERS THROUGH OUR ADMINISTRATIVE OFFICE. You may submit a written request
for a transfer to our Administrative Office. We require a written request for
jointly owned policies.
OUR AUTOMATIC TRANSFER SERVICE
We offer an automatic transfer service. This service allows you to gradually
allocate amounts to the variable investment options by periodically
transferring approximately the same dollar amount to the variable investment
options you select. This will cause you to purchase more units if the unit's
value is low, and fewer units if the unit's value is high. Therefore, you may
achieve a lower average cost per unit over the long term.
USING THE AUTOMATIC TRANSFER SERVICE DOES NOT GUARANTEE THAT YOU WILL EARN A
PROFIT OR BE PROTECTED AGAINST LOSSES.
Our automatic transfer service (also referred to as our "dollar cost averaging
service") enables you to make automatic monthly transfers from the EQ/Money
Market option to our other variable investment options. You may elect the
automatic transfer service with your policy application or at any later time
(provided you are not using the asset rebalancing service described below). At
least $5,000 must be allocated to the EQ/Money Market option to begin using the
automatic transfer service. You can choose up to eight other variable
investment options to receive the automatic transfers, but each transfer to
each option must be at least $50.
29
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
This service terminates when the EQ/Money Market option is depleted. Also, this
service will automatically terminate if you elect the paid up death benefit
guarantee or your policy is placed on loan extension. You can also cancel the
automatic transfer service at any time by sending a written request to our
Administrative Office. You may not simultaneously participate in the asset
rebalancing service and the automatic transfer service.
We will not deduct a transfer charge for any transfer made in connection with
our automatic transfer service.
OUR ASSET REBALANCING SERVICE
You may wish us to periodically redistribute the amounts you have in our
variable investment options so that the relative amount of your policy account
value in each variable option is restored to an asset allocation that you
select. You can accomplish this automatically through our asset rebalancing
service. The rebalancing may be at quarterly, semiannual, or annual intervals.
You may specify asset allocation percentages for all available variable
investment options up to a maximum of 50. The allocation percentage you specify
for each variable investment option selected must be at least 2% (whole
percentages only) of the total value you hold under the variable investment
options, and the sum of the percentages must equal 100%. You may not
simultaneously participate in the asset rebalancing service and the automatic
transfer service (discussed above).
You may request the asset rebalancing service in your policy application or at
any later time by completing our enrollment form. At any time, you may also
terminate the rebalancing program or make changes to your allocations under the
program. Once enrolled in the rebalancing service, it will remain in effect
until you instruct us in writing to terminate the service. Requesting an
investment option transfer while enrolled in our asset rebalancing service will
not automatically change your allocation instructions for rebalancing your
account value. This means that upon the next scheduled rebalancing, we will
transfer amounts among your investment options pursuant to the allocation
instructions previously on file for your rebalancing service. Changes to your
allocation instructions for the rebalancing service (or termination of your
enrollment in the service) must be in writing and sent to our Administrative
Office.
We will not deduct a transfer charge for any transfer made in connection with
our asset rebalancing service. Also, this service will automatically terminate
if you elect the paid up death benefit guarantee or your policy is placed on
loan extension. The guaranteed interest option is not an available investment
option with the asset rebalancing service.
30
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
7. Accessing your money
BORROWING FROM YOUR POLICY
You may borrow up to 90% of the cash surrender value, less any outstanding loan
and accrued loan interest before the policy year in which the insured reaches
age 75 (100% thereafter). In your policy, the cash surrender value is equal to
the difference between your policy account value and any surrender charges that
are in effect under your policy. However, the amount you can borrow will be
reduced by any amount that we hold on a "restricted" basis following your
receipt of a terminal illness living benefits payment, as well as by any other
loans (and accrued loan interest) you have outstanding and reduced for any
monthly payments under the Long Term Care Services/SM/ Rider. See "More
information about policy features and benefits: Other benefits you can add by
rider: Long Term Care Services/SM/ Rider" later in this prospectus. See "Your
option to receive a terminal illness living benefit" below. The minimum loan
amount generally is $500.
YOU CAN USE POLICY LOANS TO OBTAIN FUNDS FROM YOUR POLICY WITHOUT SURRENDER
CHARGES OR, IN MOST CASES, PAYING CURRENT INCOME TAXES. HOWEVER, THE BORROWED
AMOUNT IS NO LONGER CREDITED WITH THE INVESTMENT RESULTS OF ANY OF OUR
INVESTMENT OPTIONS UNDER THE POLICY.
When you take a policy loan, we remove an amount equal to the loan from one or
more of your investment options and hold it as collateral for the loan's
repayment. We hold this loan collateral under the same terms and conditions as
apply to amounts supporting our guaranteed interest option, with several
exceptions:
. you cannot make transfers or withdrawals of the collateral;
. we expect to credit different rates of interest to loan collateral than we
credit under our guaranteed interest option;
. we do not count the collateral when we compute our customer loyalty credit;
and
. the collateral is not available to pay policy charges.
When you request a loan, you should tell us how much of the loan collateral you
wish to have taken from any amounts you have in each of our investment options.
If you do not give us directions (or if we are making the loan automatically to
cover unpaid loan interest), we will take the loan from your investment options
in the same proportion as we are taking monthly deductions for charges. If that
is not possible, we will take the loan from your investment options in
proportion to your value in each. If the paid up death benefit guarantee is in
effect and you do not give us directions or the directions cannot be followed
due to insufficient funds (or we are making the loan automatically to cover
unpaid loan interest), we will take the loan from your investment options in
proportion to your value in each.
LOAN INTEREST WE CHARGE. The interest we charge on a policy loan accrues daily
at an adjustable interest rate. We determine the rate at the beginning of each
year of your policy and that rate applies to all policy loans that are
outstanding at any time during the year. The maximum rate is the greater of
(a) 3% or (b) the "Monthly Average Corporate" yield published in Moody's
Corporate Bond Yield Averages for the month that ends two months before the
interest rate is set. (If that average is no longer published, we will use
another average, as the policy provides.) Currently, the loan interest rate is
3% for the first ten policy years and 2% thereafter. We will notify you of the
current loan interest rate when you apply for a loan and annually on the annual
report, and will notify you in advance of any rate increase.
Loan interest payments are due on each policy anniversary. If not paid when
due, we automatically add the interest as a new policy loan.
INTEREST THAT WE CREDIT ON LOAN COLLATERAL. Under our current rules, the annual
interest rate we credit on your loan collateral during any of your policy's
first ten years will be 1% less than the rate we are then charging you for
policy loan interest, and, beginning in the policy's 11th year, equal to the
loan interest rate. The elimination of the rate differential is not guaranteed,
however. Accordingly, we have discretion to increase the rate differential for
any period, including under policies that are already in force (and may have an
outstanding loan). We do guarantee that the annual rate of interest credited on
your loan collateral will never be less than 2% and that the differential will
not exceed 1%.
We credit interest on your loan collateral daily. On each anniversary of your
policy (or when your policy loan is fully repaid) we transfer that interest to
your policy's investment options in the same proportions as if it were a
premium payment. If your policy is on loan extension, we transfer the interest
to the unloaned guaranteed interest option. If the paid up death benefit
guarantee is in effect, we transfer the interest to the investment options in
accordance with your allocation instructions on record.
EFFECTS OF A POLICY LOAN. If not repaid, the aggregate amount of the
outstanding loan and any accrued loan interest will reduce your cash surrender
value and your life insurance benefit that might otherwise be payable. We will
deduct any outstanding policy loan and accrued loan interest from your policy's
proceeds if you do not pay it back. Also, a loan can reduce the length of time
that your insurance remains in force, because the amount we set aside as loan
collateral cannot be used to pay charges as they become due. A loan can also
cause any paid up death benefit guarantee to terminate or may cause the
five-year guarantee against lapse to become unavailable.
A policy loan, repaid or not, has a permanent effect on your cash surrender
value. This results because the investment results of each investment option
apply only to the amounts remaining in such investment options. The longer the
loan is outstanding, the greater the effect on your cash surrender value is
likely to be.
Even if a loan is not taxable when made, it may later become taxable, for
example, upon termination or surrender. A policy loan can affect
31
ACCESSING YOUR MONEY
your policy account value and death benefit, even if you have repaid the loan.
See "Tax information" below for a discussion of the tax consequences of a
policy loan.
PAYING OFF YOUR LOAN. You can repay all or part of your loan at any time. We
normally assume that payments you send us are premium payments. Therefore, you
must submit instructions with your payment indicating that it is a loan
repayment. If you send us more than all of the loan principal and interest you
owe, we will treat the excess as a premium payment. Any payment received while
the paid up death benefit guarantee is in effect, the policy is on loan
extension or you are receiving monthly payments under the Long Term Care
Services/SM/ Rider will be applied as a loan repayment (or refunded if it is in
excess of the loan amount and outstanding interest).
When you send us a loan repayment, we will transfer an amount equal to such
repayment from your loan collateral back to the investment options under your
policy. First we will restore any amounts that, before being designated as loan
collateral, had been in the guaranteed interest option under your policy. We
will allocate any additional repayments among the investment options as you
instruct; or, if you don't instruct us, in the same proportion as if they were
premium payments.
If you are to receive monthly benefit payments under the Long Term Care
Services/SM/ Rider, a pro rata portion of the loan and accrued loan interest to
that date will be deducted from the monthly benefit payment as a loan
repayment. This will reduce the monthly payment otherwise payable to you under
the rider.
If the paid up death benefit guarantee is in effect, any loan repayment
allocated to the unloaned portion of the guaranteed interest option will be
limited to an amount so that the value in the unloaned portion of the
guaranteed interest option does not exceed 25% of the amount that you have in
your unloaned policy account value. Any portion of the loan repayment that we
cannot allocate to the guaranteed interest option will be allocated to the
variable investment options in proportion to any amounts that you specified for
that particular loan repayment. If you did not specify, we will allocate that
portion of the loan repayment in proportion to the paid up death benefit
guarantee allocation percentages for the variable investment options on record.
LOAN EXTENSION
Loan extension will protect against lapse of your policy due to an outstanding
policy loan in certain circumstances. There is no additional charge for the
loan extension feature. Your policy will automatically be placed on "loan
extension," if at the beginning of any policy month on or following the policy
anniversary nearest the insured person's 75/th/ birthday, but not earlier than
the 20/th/ policy anniversary, all of the following conditions apply:
. The net policy account value is not sufficient to cover the monthly
deductions then due;
. The amount of any outstanding policy loan and accrued loan interest is
greater than the larger of (a) the current base policy face amount, or
(b) the initial base policy face amount;
. You have selected Death Benefit Option A;
. You have not received a payment under either the living benefits rider or
the Long Term Care Services/SM/ Rider;
. The policy is not in a grace period; and
. No current or future distributions will be required to be paid from the
policy to maintain its qualification as "life insurance" under the Internal
Revenue Code.
When a policy goes on loan extension, all of the following will apply:
. We will collect monthly deductions due under the policy up to the amount in
the unloaned policy account value.
. Any policy account value that is invested in our variable investment
options will automatically be transferred to our guaranteed interest
option; and no transfers out of the guaranteed interest option may
thereafter be made into any of our variable investment options.
. Loan interest will continue to accrue and we will send you a notice of any
loan interest due on or about each policy anniversary. If the loan interest
is not paid when due, it will be added to the outstanding loan balance.
. No additional loans or partial withdrawals may be requested.
. No changes in face amount or death benefit option may be requested.
. No additional premium payments will be accepted. Any payments received will
be applied as loan repayments. If a loan repayment is made, the repaid
amount will become part of the unloaned guaranteed interest option. Any
payment in excess of the outstanding loan balance will be refunded to you.
. All additional benefit riders and endorsements will terminate, including
the Long Term Care Services/SM/ Rider.
. No future allocations or transfers to the investment options will be
accepted.
. The paid up death benefit guarantee if applicable, may not be elected.
. The policy will not thereafter lapse for any reason.
On the policy anniversary when the insured attains age 75 and if such policy
has been in force for 20 years, and each month thereafter, we will determine
whether the policy is on loan extension. You will be sent a letter explaining
the transactions that are allowed and prohibited while a policy is on loan
extension. Once a policy is on loan extension, it will remain on loan extension
during the lifetime of the insured unless the policy is surrendered.
If your policy is on loan extension, the death benefit payable under the policy
is the greatest of (a), (b) and (c):
(a)The greater of the policy account value or the outstanding loan and accrued
loan interest on the date of the insured's death, multiplied by a percentage
shown in your policy;
(b)The outstanding loan and accrued loan interest, plus $10,000; or
(c)The base policy face amount on the date of death.
Other than as outlined above, all terms and conditions of your policy will
continue to apply as if your policy is not on loan extension. If your policy is
on loan extension, due to an absence of Internal Revenue Service guidance on
such features, there is some uncertainty as to how the tax law might be applied
in the future. For example, it is
32
ACCESSING YOUR MONEY
possible that in such circumstances, some or the entire outstanding loan could
be treated as a distribution from the policy.
MAKING WITHDRAWALS FROM YOUR POLICY
You may make a partial withdrawal of your net cash surrender value (defined
below) at any time after the first year of your policy and before the policy
anniversary nearest to the insured's attained age 100, provided the paid up
death benefit guarantee is not in effect, the policy is not on loan extension
and you are not receiving monthly benefit payments under the Long Term Care
Services/SM/ Rider. The request must be for at least $500, however, and we have
discretion to decline any request. If you do not tell us from which investment
options you wish us to take the withdrawal, we will use the same allocation
that then applies for the monthly deductions we make for charges; and, if that
is not possible, we will take the withdrawal from all of your investment
options in proportion to your value in each. If you elected the Long Term Care
Services/SM/ Rider, a partial withdrawal will reduce the current long-term care
specified amount by the amount of the withdrawal, but not to less than the
policy account value minus the withdrawal amount. We will not deduct a charge
for making a partial withdrawal.
YOU CAN WITHDRAW ALL OR PART OF YOUR POLICY'S NET CASH SURRENDER VALUE,
ALTHOUGH YOU MAY INCUR TAX CONSEQUENCES BY DOING SO.
EFFECT OF PARTIAL WITHDRAWALS ON INSURANCE COVERAGE. If the Option A death
benefit is in effect, a partial withdrawal results in a dollar-for-dollar
automatic reduction in the policy's face amount (and, hence, an equal reduction
in the Option A death benefit). We will not permit a partial withdrawal that
would reduce the face amount below $100,000, or that would cause the policy to
no longer be treated as life insurance for federal income tax purposes.
If death benefit Option B is in effect, a partial withdrawal reduces the death
benefit on a dollar for dollar basis, but does not affect the face amount.
The result is different, however, during any time when the alternative death
benefit (discussed later in this prospectus) would be higher than the Option A
or B death benefit you have selected. In that case, a partial withdrawal will
cause the death benefit to decrease by more than the amount of the withdrawal.
A partial withdrawal reduces the amount of your premium payments that counts
toward maintaining the five-year no-lapse guarantee. A partial withdrawal may
increase the chance that your policy could lapse because of insufficient value
to pay policy charges as they fall due or failure to pass the guarantee premium
test for the five-year no-lapse guarantee.
You should refer to "Tax information" below, for information about possible tax
consequences of partial withdrawals and any associated reduction in policy
benefits. Also, partial withdrawals are not permitted while the paid up death
benefit guarantee is in effect. Please see "Paid up death benefit guarantee" in
"More information about policy features and benefits."
SURRENDERING YOUR POLICY FOR ITS NET CASH SURRENDER VALUE
Upon written request satisfactory to us, you can surrender (give us back) your
policy for its "net cash surrender value" at any time. The net cash surrender
value equals your policy account value, minus any outstanding loan and unpaid
loan interest, minus any amount of your policy account value that is
"restricted" as a result of previously distributed terminal illness living
benefits, and further reduced for any monthly benefit payments under the Long
Term Care Services/SM/ Rider, and minus any surrender charge that then remains
applicable. The surrender charge is described in "Charges and expenses you will
pay" earlier in this prospectus.
Please refer to "Tax information" below for the possible tax consequences of
surrendering your policy.
YOUR OPTION TO RECEIVE A TERMINAL ILLNESS LIVING BENEFIT
Subject to our insurance underwriting guidelines and availability in your
state, your policy will automatically include our living benefits rider. This
feature enables you to receive a portion (generally the lesser of 75% or
$500,000) of the policy's death benefit (excluding death benefits payable under
certain other policy riders), if the insured person has a terminal illness (as
defined in the rider). The maximum aggregate amount of payments that will be
paid under this Living Benefits Rider for all policies issued by AXA Equitable
or an affiliate company on the life of the same insured person is $500,000. We
make no additional charge for the rider, but we will deduct a one-time
administrative charge of up to $250 from any living benefit we pay.
If you tell us that you do not wish to have the living benefits rider added at
issue, but you later ask to add it, there will be a $100 administrative charge.
Also, we will need to evaluate the insurance risk at that time, and we may
decline to issue the rider.
If you receive a living benefit on account of terminal illness, the Long Term
Care Services/SM/ Rider for chronic illness benefits, if elected, will
terminate and no further benefits will be payable under the Long Term Care
Services/SM/ Rider. Long Term Care Services/SM/ Rider charges will also stop.
In addition, once you receive a living benefit, you cannot elect the paid up
death benefit guarantee and your policy cannot be placed on loan extension. We
will deduct the amount of any living benefit we have paid, plus interest (as
specified in the rider), from the death benefit proceeds that become payable
under the policy if and when the insured person dies. (In your policy we refer
to this as a "lien" we establish against your policy.)
When we pay a living benefit, we automatically transfer a pro rata portion of
your policy's net cash surrender value to the policy's guaranteed interest
option. This amount, together with the interest we charge thereon, will be
"restricted"-- that is, it will not be available for any loans, transfers or
partial withdrawals that you may wish to make. In addition, it may not be used
to satisfy the charges we deduct from your policy's value. We also will deduct
these restricted amounts from any subsequent surrender proceeds that we pay.
The receipt of a living benefits payment may qualify for exclusion from income
tax. See "Tax information" below. Receipt of a living benefits payment may
affect your eligibility for certain government benefits or entitlements.
YOU CAN ARRANGE TO RECEIVE A "LIVING BENEFIT" IF THE INSURED PERSON BECOMES
TERMINALLY ILL.
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ACCESSING YOUR MONEY
8. Tax information
This discussion is based on current federal income tax law and interpretations.
It assumes that the policy owner is a natural person who is a U.S. citizen and
resident and has an insurable interest in the insured. The tax effects on
corporate taxpayers, non-U.S. residents or non-U.S. citizens may be different.
This discussion is general in nature, and should not be considered tax advice,
for which you should consult a qualified tax advisor.
BASIC INCOME TAX TREATMENT FOR YOU AND YOUR BENEFICIARY
An Incentive Life(R) '06 policy will be treated as "life insurance" for federal
income tax purposes (a) if it meets the definition of life insurance under
Section 7702 of the Internal Revenue Code (the "Code") and (b) as long as the
investments made by the underlying Portfolios satisfy certain investment
diversification requirements under Section 817(h) of the Code. The following
discussion assumes that the policies meet these requirements and, therefore,
that generally:
. the death benefit received by the beneficiary under your policy will not be
subject to federal income tax; and
. increases in your policy account value as a result of interest or
investment experience will not be subject to federal income tax, unless and
until there is a distribution from your policy, such as a surrender, a
partial withdrawal, loan or a payment to you.
The IRS, however, could disagree with our position such that certain tax
consequences could be other than as described. If it is subsequently determined
that a policy does not satisfy the applicable requirements, we may take
appropriate steps to bring the policy into compliance with such requirements
and we reserve the right to restrict policy transactions in order to do so.
There may also be different tax consequences if you assign your policy,
transfer an interest therein or designate a new owner. See "Assigning your
policy" later in this prospectus. See also special rules below for "Business
and employer owned policies," and for the discussion of insurable interest
under "Other information."
TAX TREATMENT OF DISTRIBUTIONS TO YOU (LOANS, PARTIAL WITHDRAWALS, AND FULL
SURRENDER)
The federal income tax consequences of a distribution from your policy depend
on whether your policy is a "modified endowment contract" (sometimes also
referred to as a "MEC"). In all cases, however, the character of any income
described below as being taxable to the recipient will be ordinary income (as
opposed to capital gain).
TESTING FOR MODIFIED ENDOWMENT CONTRACT STATUS. Your policy will be a "modified
endowment contract" if, at any time during the first seven years of your
policy, you have paid a cumulative amount of premiums that exceeds the
cumulative seven-pay limit. The cumulative seven-pay limit is the amount of
premiums that you would have paid by that time under a similar fixed-benefit
insurance policy that was designed (based on certain assumptions mandated under
the Code) to provide for paid up future benefits after the payment of seven
equal annual premiums. ("Paid up" means that no future premiums would be
required.) This is called the "seven-pay" test.
Whenever there is a "material change" under a policy, the policy will generally
be (a) treated as a new contract for purposes of determining whether the policy
is a modified endowment contract and (b) subjected to a new seven-pay period
and a new seven-pay limit. The new seven-pay limit would be determined taking
into account, under a prescribed formula, the policy account value at the time
of such change. A materially changed policy would be considered a modified
endowment contract if it failed to satisfy the new seven-pay limit at any time
during the new seven-pay period. A material change for these purposes could
occur as a result of a change in death benefit option, a requested increase in
the policy's face amount or selection of additional rider benefits or certain
other changes.
If your policy's benefits are reduced during its first seven years (or within
seven years after a material change), the seven-pay limit will be redetermined
based on the reduced level of benefits and applied retroactively for purposes
of the seven-pay test. (Such a reduction in benefits could include, for
example, a requested decrease in face amount, the termination of additional
benefits under a rider or, in some cases, a partial withdrawal.) If the
premiums previously paid during its first seven years (or within seven years
after a material change) are greater than the recalculated (lower) seven-pay
limit, the policy will become a modified endowment contract.
A life insurance policy that you receive in exchange for a modified endowment
contract will also be considered a modified endowment contract.
In addition to the above premium limits for testing for modified endowment
status, federal income tax rules must be complied with in order for it to
qualify as life insurance. Changes made to your policy, for example, a decrease
in face amount (including any decrease that may occur as a result of a partial
withdrawal), a change in death benefit option, or other decrease in benefits
may impact the maximum amount of premiums that can be paid, as well as the
maximum amount of policy account value that may be maintained under the policy.
In some cases, this may cause us to take current or future action in order to
assure that your policy continues to qualify as life insurance, including
distribution of amounts to you that may be includible as income. See "Changes
we can make" later in this prospectus.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT
CONTRACT. As long as your policy remains in force as a non-modified endowment
contract, policy loans will generally be treated as indebtedness, and no part
of the loan proceeds will be subject to current federal income tax. Interest on
the loan will generally not be tax deductible, although interest credited on
loan collateral may become taxable under the rules below if distributed.
However, there is some uncertainty as to the federal tax treatment of policy
loans with a small or no spread between the interest rate charged and the
interest rate credited on the amount loaned. You
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TAX INFORMATION
should consult a qualified tax adviser as to the federal tax treatment of such
loans. Also, see below for taxation of loans upon surrender or termination of
your policy.
If you make a partial withdrawal after the first 15 years of your policy, the
proceeds will not be subject to federal income tax except to the extent such
proceeds exceed your "basis" in your policy. (Your basis generally will equal
the premiums you have paid, less the amount of any previous distributions from
your policy that were not taxable.) During the first 15 years, however, the
proceeds from a partial withdrawal could be subject to federal income tax,
under a complex formula, to the extent that your policy account value exceeds
your basis.
Upon full surrender, any amount by which the proceeds we pay (including amounts
we use to discharge any policy loan and unpaid loan interest) exceed your basis
in the policy will be subject to federal income tax. IN ADDITION, IF A POLICY
TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN-OUTSTANDING
POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A DISTRIBUTION AND
COULD BE SUBJECT TO TAX UNDER THE FOREGOING RULES. Finally, if you make an
assignment of rights or benefits under your policy, you may be deemed to have
received a distribution from your policy, all or part of which may be taxable.
POLICY LOANS. Policy loans can cause taxable income upon the termination of a
policy with no cash payout. In the case of a surrender, the loan amount is
taken into account in determining any taxable amount and such income can also
exceed the payment received. These events can occur from potential situations
which include: (1) amount of outstanding policy debt (loans taken plus unpaid
interest amounts added to the outstanding loan) at or near the maximum loan
value; (2) unfavorable investment results affecting your policy account value;
(3) increasing monthly policy charges due to increasing attained ages of the
insured; (4) high or increasing amount of insurance risk, depending on death
benefit option and changing account value; and (5) increasing policy loan rates
if an adjustable policy loan rate is in effect.
Ideally a policy loan will be paid from income tax free death benefit proceeds
if your policy is kept in force until the death of the insured. To avoid policy
terminations that may give rise to significant income tax liability, you may
need to make substantial premium payments or loan repayments to keep your
policy in force.
You can reduce the likelihood that these situations will occur by considering
these risks before taking a policy loan. If you take a policy loan, you should
monitor the status of your policy with your financial representative and your
tax advisor at least annually, and take appropriate preventative action. As
indicated above, in the case of a policy that is a modified endowment contract
("MEC"), any loan will be treated as a distribution when made, and thus may be
taxable at such time.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS A MODIFIED ENDOWMENT
CONTRACT. Any distribution from your policy will be taxed on an "income-first"
basis if your policy is a modified endowment contract. Distributions for this
purpose include a loan (including any increase in the loan amount to pay
interest on an existing loan or an assignment or a pledge to secure a loan) or
withdrawal. Any such distributions will be considered taxable income to you to
the extent your policy account value exceeds your basis in the policy. (For
modified endowment contracts, your basis is similar to the basis described
above for other policies, except that it also would be increased by the amount
of any prior loan under your policy that was considered taxable income to you.)
For purposes of determining the taxable portion of any distribution, all
modified endowment contracts issued by AXA Equitable (or its affiliates) to the
same owner (excluding certain qualified plans) during any calendar year are
treated as if they were a single contract.
A 10% penalty tax also will apply to the taxable portion of most distributions
from a policy that is a modified endowment contract. The penalty tax will not,
however, apply to (i) taxpayers whose actual age is at least 59 1/2,
(ii) distributions in the case of a disability (as defined in the Code) or
(iii) distributions received as part of a series of substantially equal
periodic annuity payments for the life (or life expectancy) of the taxpayer or
the joint lives (or joint life expectancies) of the taxpayer and his or her
beneficiary. The exceptions generally do not apply to life insurance policies
owned by corporations or other entities.
IF YOUR POLICY TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN
OUTSTANDING POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A
DISTRIBUTION (to the extent the loan was not previously treated as such) and
could be subject to tax, including the 10% penalty tax, as described above. In
addition, upon a full surrender, any excess of the proceeds we pay (including
any amounts we use to discharge any loan) over your basis in the policy, will
be subject to federal income tax and, unless an exception applies, the 10%
penalty tax.
Distributions that occur during a year of your policy in which it becomes a
modified endowment contract, and during any subsequent years, will be taxed as
described in the four preceding paragraphs. In addition, distributions from a
policy within two years before it becomes a modified endowment contract also
will be subject to tax in this manner. This means that a distribution made from
a policy that is not a modified endowment contract could later become taxable
as a distribution from a modified endowment contract. So, for example, if a
policy has been collaterally assigned as security for a loan and the policy
subsequently becomes a MEC there could be a taxable deemed distribution even
though the policy owner has not received any payment from us.
POLICY CHANGES. Changes made to a life insurance policy, for example, a
decrease in benefits, a death benefit option change, or the termination or
restoration of a terminated policy, may have other effects on your policy,
including impacting the maximum amount of premiums that can be paid under the
policy. In some cases, this may cause us to take action in order to assure your
policy continues to qualify as life insurance, including distribution of
amounts that may be includable as income. This action may be required under the
tax law even though the policy may not be sufficiently funded to keep it in
force for a desired duration. In some cases, premium payments for a policy year
could be limited to the amount needed to keep the policy in force until the end
of the policy year. You should carefully go over the implications of any policy
changes with your advisor before making a change.
RESTORATION OF A TERMINATED POLICY. For tax purposes, some restorations of a
policy that terminated after a grace period may be treated as the purchase of a
new policy. Since tax laws and regulations and their application may have
changed by such time, there can be no assurance that we can reinstate the
policy to qualify as life insurance under future tax rules.
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TAX INFORMATION
TAX TREATMENT OF LIVING BENEFITS RIDER OR LONG TERM CARE SERVICES/SM/ RIDER
UNDER A POLICY WITH THE APPLICABLE RIDER
LIVING BENEFITS RIDER. Amounts received under an insurance policy on the life
of an individual who is terminally ill, as defined by the tax law, are
generally excludable from gross income as an accelerated death benefit. We
believe that the benefits provided under our living benefits rider meet the tax
law's definition of terminally ill and can qualify for this income tax
exclusion.
LONG TERM CARE SERVICES/SM/ RIDER. Benefits received under the Long Term Care
Services/SM/ Rider are intended to be treated, for Federal income tax purposes,
as accelerated death benefits under section 101(g) of the Code on the life of a
chronically ill insured person receiving qualified long-term care services
within the meaning of section 7702B of the Code. The benefits are intended to
qualify for exclusion from income subject to the limitations of the Code with
respect to a particular insured person. However, receipt of these benefits may
be taxable in part. Generally income exclusion for all payments from all
sources with respect to an insured person will be limited to the higher of the
Health Insurance Portability and Accountability Act ("HIPAA") per day limit or
actual costs incurred by the taxpayer on behalf of the insured person.
Charges for the Long Term Care Services/SM/ Rider may be considered
distributions for income tax purposes, and may be taxable to the owner to the
extent not considered a nontaxable return of premiums paid for the life
insurance policy. See above for tax treatment of distributions to you. Charges
for the Long Term Care Services/SM/ Rider are generally not considered
deductible for income tax purposes. The Long Term Care Services/SM/ Rider is
not intended to be a qualified long-term care insurance contract under section
7702B(b) of the Code.
Any adjustments made to your policy death benefit, face amount and other values
as a result of Long Term Care Services/SM/ Rider benefits paid will also
generally cause us to make adjustments with respect to your policy under
federal income tax rules for testing premiums paid, your tax basis in your
policy, your overall premium limits and the seven-pay period and seven-pay
limit for testing modified endowment contract status.
UNDER EITHER RIDER, if the owner and the insured person are not the same, the
exclusion for accelerated death benefits for terminal illness or a chronic
illness does not apply if the owner (taxpayer) has an insurable interest with
respect to the life of the insured person by reason of the insured person being
an officer, employee or director of the taxpayer or by reason of the insured
person being financially interested in any trade or business carried on by the
taxpayer. Also, if the owner and insured person are not the same, other tax
considerations may also arise in connection with a transfer of benefits
received to the insured person, for example, gift taxes in personal settings,
compensation income in the employment context and inclusion of life insurance
policy proceeds for estate tax purposes in certain trust owned situations.
Under certain conditions, a gift tax exclusion may be available for certain
amounts paid on behalf of a donee to the provider of medical care.
BUSINESS AND EMPLOYER OWNED POLICIES
Any employer owned life insurance arrangement on an employee or director as
well as any corporate, trade, or business use of a policy should be carefully
reviewed by your tax advisor with attention to the rules discussed below. Also,
careful consideration should be given to any other rules that may apply,
including other possible pending or recently enacted legislative proposals.
REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS. Federal tax law imposes
additional requirements for employer owned life insurance policies. The
provisions can have broad application for contract owners engaged in a trade or
business, or certain related persons. These requirements include detailed
notice and consent rules, annual tax reporting and recordkeeping requirements
on the employer and limitations on those employees (including directors) who
can be insured under the life insurance policy. Failure to satisfy applicable
requirements will result in death benefits in excess of premiums paid by the
owner being includible in the owner's income upon the death of the insured
employee. Notice and consent requirements must be satisfied before the issuance
of the life insurance policy or a material change to an existing life insurance
policy, otherwise benefits may lose their tax favored treatment.
The rules generally apply to life insurance policies issued after August 17,
2006. Note, however, that material increases in the death benefit or other
material changes will generally cause an existing policy to be treated as a new
policy and thus subject to the new requirements. The term "material" has not
yet been fully defined but is expected to not include automatic increases in
death benefits in order to maintain compliance with the life insurance policy
tax qualification rules under the Code. An exception for certain tax-free
exchanges of life insurance policies pursuant to Section 1035 of the Code may
be available but is not clearly defined.
LIMITATIONS ON INTEREST DEDUCTIBILITY FOR BUSINESS OWNED LIFE
INSURANCE. Ownership of a policy by a trade or business can limit the amount of
any interest on business borrowings that the entity otherwise could deduct for
federal income tax purposes, even though such business borrowings may be
unrelated to the policy. To avoid the limit, the insured person must be an
officer, director, employee or 20% owner of the trade or business entity when
coverage on that person commences.
The limit does not generally apply for policies owned by natural persons (even
if those persons are conducting a trade or business as sole proprietorships),
unless a trade or business entity that is not a sole proprietorship is a direct
or indirect beneficiary under the policy. Entities commonly have such a
beneficial interest, for example, in so-called "split-dollar" arrangements. If
the trade or business entity has such an interest in a policy, it will be
treated the same as if it owned the policy for purposes of the limit on
deducting interest on unrelated business income.
The limit generally applies only to policies issued after June 8, 1997 in
taxable years ending after such date. However, for this purpose, any material
change in a policy will be treated as the issuance of a new policy.
In cases where the above-discussed limit on deductibility applies, the
non-deductible portion of unrelated interest on business loans is determined by
multiplying the total amount of such interest by a fraction. The numerator of
the fraction is the policy's average account value (excluding amounts we are
holding to secure any policy loans) for the year in question, and the
denominator is the average for the year of the aggregate tax bases of all the
entity's other assets. The above limitation
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TAX INFORMATION
is in addition to rules limiting interest deductions on policy loans against
business-owned life insurance. Special rules apply to insurance company owners
of policies which may be more restrictive.
USES OF POLICY WHICH MAY BE SCRUTINIZED. The IRS may view certain uses of life
insurance policies as a tax shelter or as an abusive transaction. Please
consult your tax advisor for the most up-to-date information as to IRS
"Recognized Abusive and Listed Transactions" and how they may affect your
policy.
REQUIREMENT THAT WE DIVERSIFY INVESTMENTS
Under Section 817(h) of the Code, the Treasury Department has issued
regulations that implement investment diversification requirements. Failure to
comply with these regulations would disqualify your policy as a life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to federal income tax on any income and gains under the policy and the
death benefit proceeds would lose their income tax-free status. These
consequences would continue for the period of the disqualification and for
subsequent periods. Through the Portfolios, we intend to comply with the
applicable diversification requirements, though no assurances can be given in
this regard.
ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
If the policy's owner is the insured person, the death benefit will generally
be includable in the owner's estate for purposes of federal estate tax. If the
owner is not the insured person, and the owner dies before the insured person,
the value of the policy would be includable in the owner's estate. If the owner
is neither the insured person nor the beneficiary, the owner will be considered
to have made a gift to the beneficiary of the death benefit proceeds when they
become payable.
In general, a person will not owe estate or gift taxes until gifts made by such
person, plus that person's taxable estate, total at least $10 million (this
statutory amount is to be indexed for inflation after 2010). A portability rule
generally permits a surviving spouse to elect to carry over the unused portion
of the deceased spouse's exclusion amount.
Certain amounts may be deductible or excludable, such as gifts and bequests to
a person's spouse or charitable institutions, as well as for certain gifts per
recipient per year ($15,000 for 2019, indexed for inflation).
As a general rule, if you make a "transfer" to a person two or more generations
younger than you, a generation-skipping tax may be payable. Generation-skipping
transactions would include, for example, a case where a grandparent "skips" his
or her children and names his or her grandchildren as a policy's beneficiaries.
In that case, the generation-skipping "transfer" would be deemed to occur when
the insurance proceeds are paid. The generation-skipping tax rates are similar
to the maximum estate tax rates in effect at the time. Individuals are
generally allowed an aggregate generation-skipping tax exemption of the same
amount discussed above for estate and gift taxes, but without portability.
The particular situation of each policy owner, insured person or beneficiary
will determine how ownership or receipt of policy proceeds will be treated for
purposes of federal estate, gift and generation-skipping taxes, as well as
state and local estate, inheritance and other taxes. Because these rules are
complex, you should consult with a qualified tax adviser for specific
information, especially where benefits are passing to younger generations.
If this policy is used with estate and gift tax planning in mind, you should
consult with your tax advisor as to the most up-to-date information as to
federal estate, gift and generation skipping tax rules.
PENSION AND PROFIT-SHARING PLANS
There are special limits on the amount of insurance that may be purchased by a
trust or other entity that forms part of a pension or profit-sharing plan
qualified under Section 401(a) or 403 of the Code. In addition, the federal
income tax consequences will be different from those described in this
prospectus. These rules are complex, and you should consult a qualified tax
advisor.
SPLIT-DOLLAR AND OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may also apply when a policy is held by an employer or a trust,
or acquired by an employee, in connection with the provision of other employee
benefits. Employees may have imputed income for the value of any economic
benefit provided by the employer. There may be other tax implications, as well.
It is possible that certain split-dollar arrangements may be considered to be a
form of deferred compensation under Section 409A of the Code, which broadens
the definition of deferred compensation plans, and subjects such plans to new
requirements. Further, certain split-dollar arrangements may come within the
rules for business- and employer-owned policies. Among other issues, policy
owners must consider whether the policy was applied for by or issued to a
person having an insurable interest under applicable state law and with the
insured person's consent. The lack of an insurable interest or consent may,
among other things, affect the qualification of the policy as life insurance
for federal income tax purposes and the right of the beneficiary to receive a
death benefit.
If this policy is being or was purchased pursuant to a split-dollar
arrangement, you should also consult your tax advisor for advice concerning the
effect of the following guidance. In 2002 the IRS issued Notice 2002-8
concerning the taxation of split-dollar life insurance arrangements as well as
regulations in both 2002 and 2003. They provide for taxation under one of two
mutually exclusive regimes depending upon the structure of the arrangement.
These are a loan regime and an economic benefit regime. Transition and
grandfathering rules, among other items, should be carefully reviewed when
considering such arrangements. A material modification to an existing
arrangement may result in a change in tax treatment. In addition, public
corporations (generally publicly-traded or publicly-reporting companies) and
their subsidiaries should consider the possible implications on split-dollar
arrangements of the Securities Exchange Act of 1934 which generally prohibit
certain direct or indirect loans to executive officers or directors. At least
some split-dollar arrangements could be deemed to involve loans within the
purview of that section.
ERISA
Employers and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement
Income Security Act of 1974. There may also be other implications. You should
consult a qualified legal advisor.
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TAX INFORMATION
3.8% TAX ON NET INVESTMENT INCOME OR "NII"
The 3.8% Medicare tax on certain unearned income of taxpayers whose adjusted
incomes exceed certain thresholds applies to all or part of a taxpayer's NII.
As currently interpreted under IRS guidelines, NII includes the taxable portion
of an annuitized payment from a life insurance contract. It has not been
defined to include taxable amounts from partial withdrawals, surrenders or
lapses of life insurance policies subject to loans. You should consult your tax
advisor as to the applicability of this tax to you.
OUR TAXES
The operations of our separate accounts are reported in our federal income tax
return. Separate account investment income and capital gains, however, are, for
tax purposes, reflected in our variable life insurance policy reserves.
Currently we pay no taxes on such income and gains and impose no charge for
such taxes. We reserve the right to impose a charge in the future for taxes
incurred by us that are allocable to the policies.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate accounts. These tax benefits, which
may include the foreign tax credit and the corporate dividends received
deduction, are not passed back to you, since we are the owner of the assets
from which tax benefits may be derived.
TAX WITHHOLDING AND INFORMATION REPORTING
STATUS FOR INCOME TAX PURPOSES; FATCA. In order for us to comply with income
tax withholding and information reporting rules which may apply to life
insurance policies, we request documentation of "status" for tax purposes.
"Status" for tax purposes generally means whether a person is a "U S. person"
or a foreign person with respect to the United States; whether a person is an
individual or an entity, and if an entity, the type of entity. Status for tax
purposes is best documented on the appropriate IRS Form or substitute
certification form (IRS Form W-9 for a U.S. person or the appropriate type of
IRS Form W-8 for a foreign person). If we do not have appropriate certification
or documentation of a person's status for tax purposes on file, it could affect
the rate at which we are required to withhold income tax, and penalties could
apply. Information reporting rules could apply not only to specified
transactions, but also to life insurance policy ownership. For example, under
the Foreign Account Tax Compliance Act ("FATCA"), which applies to certain
U.S.-source payments, and similar or related withholding and information
reporting rules, we may be required to report policy values and other
information for certain policyholders. For this reason, we and our affiliates
intend to require appropriate status documentation at purchase, change of
ownership, and affected payment transactions, including death benefit payments.
FATCA and its related guidance is extraordinarily complex and its effect varies
considerably by type of payor, type of payee and type of recipient.
TAX WITHHOLDING. Generally, unless you provide us with a satisfactory written
election to the contrary prior to the distribution, we are required to withhold
income tax from any proceeds we distribute as part of a taxable transaction
under your policy. If you do not wish us to withhold tax from the payment, or
if we do not withhold enough, you may have to pay later, and you may incur
penalties under the estimated income tax rules. In some cases, where generation
skipping taxes may apply, we may also be required to withhold for such taxes
unless we are provided satisfactory notification that no such taxes are due.
States may also require us to withhold tax on distributions to you and may not
always follow federal rules.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U.S. entity recipients which
are treated as foreign because they fail to document their U.S. status before
payment is made. We do not discuss these rules here in detail. However, we may
require additional documentation in the case of payments made to United States
persons living abroad and non-United States persons (including U.S. entities
treated as foreign) prior to processing any requested transaction. For Puerto
Rico and other jurisdictions, income is considered U.S.-source income. We
anticipate requiring owners or beneficiaries in Puerto Rico which are not
individuals to document their status to avoid 30% FATCA withholding from
U.S.-source income.
POSSIBILITY OF FUTURE TAX CHANGES AND OTHER TAX INFORMATION
The U.S. Congress frequently considers legislation that, if enacted, could
change the tax treatment of life insurance policies or increase the taxes we
pay in connection with such policies. This could include special rules for
tax-exempt entities as well as for corporate or business use of policies. In
addition to legislation enacted in December 2017, Congress may also consider
further proposals to comprehensively reform or overhaul the United States tax
and retirement systems, which if enacted, could affect the tax benefits of a
life insurance policy. Legislative proposals could make sweeping changes to
many longstanding tax rules, including certain tax benefits currently available
to newly purchased cash value life insurance policies. Proposals have been
considered to eliminate some or all taxable expenditures or tax preferences
together with some lowering of tax rates. We cannot predict what if any,
legislation will actually be proposed or enacted or what type of grandfathering
will be allowed for existing life insurance policies. In addition, the Treasury
Department may amend existing regulations, issue regulations on the
qualification of life insurance and modified endowment contracts, or adopt new
or clarifying interpretations of existing law. Some areas of possible future
guidance include new rules for testing for policies issued on a special risk
class basis. As a result, there are areas of some uncertainty even under
current laws, such that future tax consequences of a policy could be other than
as described herein.
State and local tax law or, if you are not a U.S. citizen and resident, foreign
tax law, may also affect the tax consequences to you, the insured person or
your beneficiary, and are subject to change or change in interpretation. Any
changes in federal, state, local or foreign tax law or interpretations could
have a retroactive effect both on our taxes and on the way your policy is taxed
or the tax benefit of life insurance policies.
2009 OR LATER INCREASES IN BENEFITS OR COVERAGE, ADDITION OF RIDERS, OR CERTAIN
OTHER POLICY CHANGES
In addition to the other tax effects that an increase or decrease in benefits
under your policy may have as discussed earlier in this tax information
section, several IRS Notices collectively provide special guidance concerning
the mortality charge assumptions permitted for federal income tax testing
purposes for certain changes made in 2009 or later to policies issued prior to
2009 based on 1980 Commissioners Standard Ordinary ("1980 CSO") mortality
tables.
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TAX INFORMATION
The Notices provide "safe harbor" guidance which would not require certain 2009
or later changes to cause tax testing to become subject to any prevailing
mortality tables subsequent to the 1980 CSO mortality tables. This safe harbor
guidance covers certain changes that are pursuant to the terms of the policy,
including the addition or removal of a rider and an increase or decrease in the
death benefit. If we determine that a transaction would cause your policy to
lose its ability to be tax tested under the 1980 CSO mortality tables under
which your policy operates, we intend to refuse such 2009 or later transactions
which might otherwise have been available under your policy, subject to our
rules then in effect. We would take such action to help assure that your policy
can continue to qualify as life insurance for federal tax testing under the
1980 CSO mortality tables. Certain ratings changes and requests for
substitution of the insured will not be permitted in the absence of further
guidance. There can be no assurance as to whether such guidance will be
provided or what any such guidance may provide.
OTHER INFORMATION
There are a number of tax benefits associated with variable life insurance
policies. For tax benefits to be available, the policy owner must have an
insurable interest in the life of the insured under applicable state laws.
Requirements may vary by state. A failure can, among other consequences, cause
the policy owner to lose anticipated favorable federal tax treatment generally
afforded life insurance.
For tax benefits to continue, the policy must continue to qualify as life
insurance. We reserve the right to restrict transactions that we determine
would cause your policy to fail to qualify as life insurance under federal tax
law. In addition to other requirements, federal tax law requires that the
insurer, and not the policy owner, have control of the underlying investment
assets for the policy to qualify as life insurance.
You may make transfers among Portfolios of the Separate Account, but you may
not direct the investments each Portfolio makes. If the IRS were to conclude
that you, as the investor, have control over these investments, then the policy
would no longer qualify as life insurance. You would be treated as the owner of
separate account assets and be currently taxed on any income or gain the assets
generate.
The IRS has provided some guidance on investor control, but many issues remain
unclear. One such issue is whether a policy owner can have too much investor
control if the variable life policy offers a large number of investment options
in which to invest policy account values and/or the ability to make frequent
transfers available under the policy. We do not know if the IRS will provide
any further guidance on the issue. If guidance is provided, we do not know if
it would apply retroactively to policies already in force.
We believe that our variable life policies do not give policy owners investment
control over the investments underlying the various investment options;
however, the IRS could disagree with our position. The IRS could seek to treat
policy owners with a large number of investment options and/or the ability to
freely transfer among investment options as the owners of the underlying
Portfolio's shares. Accordingly, we reserve the right to modify your policy as
necessary to attempt to prevent you from being considered the owner of your
policy's proportionate share of the assets of the Separate Account.
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TAX INFORMATION
9. More information about policy features and benefits
GUARANTEE PREMIUM TEST FOR THE FIVE-YEAR NO-LAPSE GUARANTEE
We offer a guarantee against policy lapse that depends on your having paid
specified amounts of premiums. We refer to this guarantee as our "five-year
no-lapse guarantee" and you can read more about it in "You can guarantee that
your policy will not terminate before a certain date" in "Risk/benefit summary:
Policy features, benefits and risks," earlier in this prospectus.
GUARANTEE PREMIUM TEST. If your net policy account value is not sufficient to
pay a monthly deduction that has become due, we check to see if the cumulative
amount of premiums that you have paid to date (less any partial withdrawals) at
least equals the cumulative guarantee premiums due to date for the five-year
no-lapse guarantee and guarantee premiums for any optional riders that are then
available under your policy. If it does, your policy will not lapse, provided
that any policy loan and accrued loan interest does not exceed the policy
account value, and provided that the guarantee is still in effect.
GUARANTEE PREMIUMS. The amount of the guarantee premiums for the five-year
no-lapse guarantee is set forth in your policy on a monthly basis. The
guarantee premiums are actuarially determined at policy issuance and depend on
the age and other insurance risk characteristics of the insured person, as well
as the amount of the coverage and additional features you select. The guarantee
premiums may change if, for example, the face amount of the policy or the
long-term care specified amount changes, or a rider is eliminated, or if there
is a change in the insured person's risk characteristics. We will send you a
new policy page showing any change in your guarantee premiums. Any change will
be prospective only, and no change will extend the no-lapse guarantee period
beyond the first five policy years.
PAID UP DEATH BENEFIT GUARANTEE
Subject to our approval, you may elect the "paid up" death benefit guarantee at
any time after the fourth year. This benefit provides an opportunity to lock in
all or a portion of your policy's death benefit without making additional
premium payments. Also, this benefit may be attractive to you if you are
concerned about the impact of poor future investment performance or increases
in policy charges on your policy's death benefit and potential policy lapse.
You may elect this benefit provided:
. the insured's attained age is not more than 99;
. you have death benefit "Option A" in effect (see "About your life insurance
benefit" in "Risk/benefit summary: Policy features, benefits and risks,"
earlier in this prospectus);
. we are not paying policy premiums or waiving monthly charges under the
terms of a disability waiver rider and you have not received any payment
under a living benefits rider or the Long Term Care Services/SM/ Rider;
. the policy is not in default or in a grace period as of the effective date
of the paid up death benefit guarantee;
. the policy account value after the deduction of any proportionate surrender
charge would not be less than any outstanding policy loan and accrued loan
interest;
. the policy is not on loan extension. (For more information about loan
extension, see "Accessing your money" earlier in this prospectus);
. the election would not reduce the face amount (see below) below $100,000;
. no current or future distribution from the policy will be required to
maintain its qualification as life insurance under the Internal Revenue
Code; and
. You agree to reallocate your fund values to the guaranteed interest option
and the EQ Allocation investment options. We reserve the right to change
the investment options available to you under the paid up death benefit
guarantee. (See "Restrictions on allocations and transfers," below).
The effective date of the paid up death benefit guarantee will be the beginning
of the policy month that next follows the date we approve your request. On the
effective date of this guarantee, all additional benefit riders and
endorsements will automatically terminate including the Long Term Care
Services/SM/ Rider. The policy's net cash surrender value after the paid up
death benefit guarantee is in effect will equal the policy account value, less
any applicable surrender charges and any outstanding policy loan and accrued
loan interest. The policy death benefit will be Option A. We will continue to
deduct policy charges from your policy account value. As explained below,
electing the paid up death benefit guarantee may reduce your policy's face
amount, which in turn may result in the deduction of a surrender charge. You
can request a personalized illustration that will show you how your policy face
amount could be reduced and values could be affected by electing the paid up
death benefit guarantee.
POSSIBLE REDUCTION OF FACE AMOUNT. The face amount of your policy after this
guarantee is elected is the lesser of (a) the face amount immediately before
the election or (b) the policy account value on the effective date of the
election divided by a factor based on the then age of the insured person. The
factors are set forth in your policy. As a general matter, the factors change
as the insured person ages so that, if your policy account value stayed the
same, the result of the calculation under clause (b) above would be lower the
longer your policy is in force. We will decline your election if the new face
amount would be less than $100,000.
If electing the paid up death benefit guarantee causes a reduction in face
amount, we will deduct the same portion of any remaining surrender charge as we
would have deducted if you had requested that
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
decrease directly (rather than electing the paid up death benefit guarantee).
(See "Risk/benefit summary: Charges and expenses you will pay" earlier in this
prospectus.) In certain cases, a reduction in face amount may cause a policy to
become a modified endowment contract. See "Tax treatment of distributions to
you (loans, partial withdrawals and full surrender)" under "Tax Information."
RESTRICTIONS ON ALLOCATIONS AND TRANSFERS. While the paid up death benefit
guarantee is in effect, you will be restricted as to the investment options
available to you under the policy and the amounts that can be allocated to the
guaranteed interest option. Currently, you would be able to allocate up to 25%
of your unloaned policy account value to the guaranteed interest option. The
remainder of your unloaned policy account value must be allocated among the EQ
Allocation investment options. (See "About the Portfolios of the Trusts" for
the listing of EQ Allocation investment options.) When you elect the paid up
death benefit guarantee, we require that you provide us with new allocation
instructions. In the absence of these instructions, we will be unable to
process your request.
Also, transfers from one or more of our EQ Allocation investment options into
the guaranteed interest option would not be permitted if such transfer would
cause the value of your guaranteed interest option to exceed 25% of your total
unloaned policy account value. Loan repayments allocated to your guaranteed
interest option will be limited to an amount that would not cause the value in
your guaranteed interest option to exceed 25% of your total unloaned policy
account value. If the value in your guaranteed interest option already exceeds
25% of your total unloaned policy account value (including the repayment), no
portion of the repayment will be allocated to the guaranteed interest option.
Any portion of the loan repayment that is not allocated to the guaranteed
interest option will be allocated in proportion to the loan repayment amounts
for the variable investment options you have specified. If we do not have
instructions, we will use the allocation percentages for the variable
investment options you specified when you elected the paid up death benefit
guarantee or the most recent instructions we have on record. These restrictions
would be lifted if the paid up death benefit guarantee is terminated.
OTHER EFFECTS OF THIS GUARANTEE. After you have elected the paid up death
benefit guarantee, you may request a policy loan, make a loan repayment or
transfer policy account value among the guaranteed interest option and variable
investment options, subject to our rules then in effect. The following
transactions, however, are not permitted when this guarantee is in effect:
. premium payments
. partial withdrawals
. changes to the policy's face amount or death benefit option
. any change that would cause the policy to lose its current or future
qualification as life insurance under the Internal Revenue Code or require
a current or future distribution from the policy to avoid such
disqualification. (See "Tax treatment of distributions to you" under "Tax
information" earlier in this prospectus.)
TERMINATION OF THIS GUARANTEE. You may terminate the paid up death benefit
guarantee by written request to our Administrative Office. If terminated, the
policy face amount will not change. However, premiums may be required to keep
the policy from lapsing. If the guarantee terminates due to an outstanding loan
and accrued loan interest exceeding the policy account value, a payment will be
required to keep the policy and the guarantee in force pursuant to the policy's
grace period provision. If the guarantee terminates for any reason, it cannot
be restored at a later date.
OTHER BENEFITS YOU CAN ADD BY RIDER
You may be eligible for the following other optional benefits we currently make
available by rider:
. Long Term Care Services/SM/ Rider -- Described below.
. disability deduction waiver -- This rider waives the monthly charges from
the policy account value if the insured is totally disabled, as defined in
the rider, for at least six consecutive months and the disability began
prior to the policy anniversary nearest the insured's 60th birthday. If
total disability begins on or after this date, the monthly charges are
waived to the earlier of the policy anniversary nearest the insured's age
65 or termination of disability. Issue ages are 0-59. However, coverage is
not provided until the insured's fifth birthday. The maximum amount of
coverage is $3,000,000 for all AXA Equitable and affiliates' policies
in-force and applied for.
. disability premium waiver -- This rider pays the specified premium or
waives the monthly charges from the policy account value, if that amount is
greater, if the insured is totally disabled, as defined in the rider, for
at least six consecutive months and the disability began prior to the
policy anniversary nearest the insured's 60th birthday. If total disability
begins on or after this date, the specified premium is paid (or the monthly
charges, if greater, are waived) to the earlier of the policy anniversary
nearest the insured's age 65 or termination of disability. Issue ages are
0-59. However, coverage is not provided until the insured's fifth birthday
for all AXA Equitable affiliates' policies in-force and applied for. The
maximum amount of coverage is $3,000,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. children's term insurance -- This rider provides term insurance on the
lives of the insured's children, stepchildren and legally adopted children
who are between the ages of 15 days to 18 years. The insured under the base
policy must be between the ages of 17 and 55. The maximum amount of
coverage is $25,000 for all AXA Equitable and affiliates' policies in-force
and applied for.
We add the following benefits automatically at no charge to each eligible
policy:
. substitution of insured person rider (See "You can change your policy's
insured person" under "More information about procedures that apply to your
policy")
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
. living benefits rider (See "Your option to receive a terminal illness
living benefit" under "Accessing your money")
. accounting benefit endorsement (See below)
. paid up death benefit guarantee endorsement (See "Paid up death benefit
guarantee" under "More information about policy features and benefits.")
. loan extension endorsement (See "Loan extension" under "Accessing your
money.")
AXA Equitable or your financial professional can provide you with more
information about these riders. Some of these benefits may be selected only at
the time your policy is issued. Some benefits are not available in combination
with others or may not be available in your state. The riders provide
additional terms, conditions and limitations, and we will furnish samples of
them to you on request. We can add, delete, or modify the riders we are making
available, at any time before they become effective as part of your policy.
See also "Tax information" earlier in this prospectus for certain possible tax
consequences and limitations of deleting riders or changing the death benefits
under a rider.
ACCOUNTING BENEFIT ENDORSEMENT
Subject to the conditions discussed below and state availability, AXA Equitable
offered an endorsement to your policy (the "Endorsement") that refunded or
waived all or a portion of certain policy charges if the policy is surrendered
for its net cash surrender value within the first five policy years.
Under our current rules, the Endorsement was offered where the following
conditions were met:
. policies were corporately owned, e.g., by endorsement "split-dollar" or
collaterally assigned "split dollar;"
. the persons proposed to be insured were deemed by us to be "highly
compensated" individuals;
. the minimum initial premium under each policy was remitted to AXA Equitable
by the employer; and
. the aggregate annualized first year planned periodic premium was at least
$150,000 if a minimum of three policies is issued, each on the life of a
different insured person, and at least $500,000 if less than three policies
are issued.
Eligible cases were issued with the accounting benefit endorsement unless the
policy owner requested us in writing to not include the Endorsement.
The Endorsement reduces the difference between the premiums paid for the policy
and the amount we will pay you if the policy is surrendered in its early years.
This, in turn, is expected to reduce any charge against the employer's earnings
when the employer accounts for the policy under generally accepted accounting
principles (GAAP). Policy owners must rely on the advice of their own
accountants, however, to determine how the purchase of a policy, as modified by
the Endorsement, will affect their GAAP financial statements.
The Endorsement works by refunding all or a portion of the deductions from
premiums and waiving all or a portion of the surrender charges, if the policy
is surrendered in its early years. The percentage of charges refunded or waived
under the Endorsement are as follows:
-------------------------------------------------------------------------------------------
SURRENDER IN POLICY PERCENT OF PREMIUM PERCENT OF SURRENDER
YEAR DEDUCTION REFUNDED* CHARGES WAIVED
-------------------------------------------------------------------------------------------
1 100% 100%
-------------------------------------------------------------------------------------------
2 67% 80%
-------------------------------------------------------------------------------------------
3 33% 60%
-------------------------------------------------------------------------------------------
4 0% 40%
-------------------------------------------------------------------------------------------
5 0% 20%
-------------------------------------------------------------------------------------------
6 and later 0% 0%
-------------------------------------------------------------------------------------------
|
* The mortality and expense risks charge and other monthly charges are not
refunded.
For example, if a policy subject to the Endorsement were surrendered in its
second policy year, we would refund:
. 67% of the charges that had been deducted from premiums (i.e., the premium
charge); and
. 80% of the amount of surrender charges that we otherwise would have imposed
for the surrender.
Once the Endorsement terminates at the end of the fifth policy year, however,
there will be no refund of prior deductions from premiums, and the full amount
of the surrender charges otherwise payable under the policy will be assessed
upon surrender. The Endorsement operates only if the policy is surrendered in
full. There is no waiver of surrender charges or refund of premium deductions
if the policy terminates after a grace period or if the face amount is reduced,
nor is there a refund of prior premium deductions for partial withdrawals. The
Endorsement does not affect the amount available for borrowing or withdrawing
from your policy nor does it affect the calculations to determine whether your
policy will lapse or terminate. The Endorsement may affect, however, the
calculations to determine whether your policy satisfies the definition of "life
insurance contract" under Section 7702 of the Code. In some cases, this may
result in the payment of a higher death benefit in the first three policy years
where it is necessary to satisfy tax law requirements.
Face amount increases are not available while this endorsement is in effect. We
offer products designed specifically for this marketplace. You can contact us
to find out more about any other AXA Equitable insurance policy.
LONG TERM CARE SERVICES/SM/ RIDER/(1)/
In states where approved, an optional rider could be elected at issue that
provides for the acceleration of the policy death benefit as a payment of a
portion of the policy's death benefit each month as a result of the insured
person being a chronically ill individual who is receiving qualified long-term
care services./(2)/ Benefits accelerated under this rider will be treated as a
lien against policy values. While this rider is in force, policy face amount
increases and death benefit option changes are not permitted.
(1)In the state of Massachusetts, this benefit will be called the Accelerated
Death Benefit for Chronic Illness Rider.
(2)For a more complete description of the terms used in this section and
conditions of this rider, please consult your rider policy form.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
An individual qualifies as "chronically ill" if they have been certified by a
licensed health care practitioner as being unable to perform (without
substantial assistance from another person) at least two activities of daily
living for a period of at least 90 days due to a loss of functional capacity;
or requiring substantial supervision to protect such individual from threats to
health and safety due to cognitive impairment.
Benefits are payable once we receive: 1) a written certification from a U.S.
licensed health care practitioner that the insured person is a chronically ill
individual and is receiving qualified long-term care services pursuant to a
written plan of care; 2) proof that the "elimination period", as discussed
below, has been satisfied; and 3) written notice of claim and proof of loss in
a form satisfactory to us. We require recertification every twelve months from
the date of the initial or subsequent certification to continue monthly benefit
payments, otherwise, benefit payments will terminate at the end of the twelve
month period. This rider may not cover all of the costs associated with
long-term care services during the insured person's period of coverage.
The monthly rate for this rider varies based on the insured person's sex, issue
age, class of risk and tobacco user status, as well as the benefit percentage
selected. See "Risk/benefit summary: Charges and expenses you will pay", for
more information on the charges we deduct for this rider.
If the net policy account value is insufficient to cover the total monthly
deductions for the base policy and any riders while benefits under this rider
are being paid, we will not lapse the policy. When monthly benefits under the
Long Term Care Services/SM/ Rider are being paid, we will waive the monthly
charge for the Long Term Care Services/SM/ Rider. See "Tax treatment of living
benefits rider or Long Term Care Services/SM/ Rider under the policy with the
applicable rider" earlier in this prospectus for more information.
We will pay up to the long-term care specified amount for qualified long-term
care services for the insured person for the duration of a period of coverage.
The initial long-term care specified amount is equal to the face amount of the
base policy at issue. This amount may change due to subsequent policy
transactions and will be reduced at the end of a period of coverage to reflect
benefits paid during that period of coverage. Any request for a decrease in the
policy face amount will reduce the current long-term care specified amount to
an amount equal to the lesser of: (a) the new policy face amount; or (b) the
long-term care specified amount immediately prior to the face amount decrease.
Any partial withdrawal will reduce the current long-term care specified amount
by the amount of the withdrawal, but not to less than the policy account value
minus the withdrawal. The maximum monthly benefit in either case will then be
equal to the new long-term care specified amount multiplied by the benefit
percentage.
The maximum monthly benefit is the maximum amount an affiliated company or we
will pay in a month for qualified long-term care services for the insured
person. The maximum monthly benefit payment amount that you can purchase from
AXA Equitable and its affiliates is limited to $50,000 per month, per insured
person. Affiliates include AXA Equitable Life and Annuity Company, MONY Life
Insurance Company of America and U.S. Financial Life Insurance. The maximum
monthly benefit is equal to the long-term care specified amount multiplied by
the benefit percentage that you have selected. This amount may change due to
subsequent policy transactions. See below for maximum monthly payment
limitations.
Each month, we will pay the monthly benefit payment (a portion of which may be
applied to repay an outstanding policy loan) for qualified long-term care
services for the insured person. The monthly benefit payment is equal to the
lesser of:
1. the maximum monthly benefit (or lesser amount as requested, however, this
may not be less than $500); or
2. the monthly equivalent of 200% (100% in the State of New York) of the per
day limit allowed by the Health Insurance Portability and Accountability
Act. (We reserve the right to increase this percentage.)
When benefits are paid under this rider, we establish an accumulated benefit
lien. This accumulated benefit lien amount will equal the cumulative amount of
rider benefits paid (including any loan repayments) during a period of
coverage, accumulated at 0% interest. We subtract the accumulated benefit lien
amount from the base policy death benefit if the insured person dies before the
end of a period of coverage. For the purposes of determining the cash surrender
value of this policy, the unloaned policy account value, and surrender charge
(if applicable) will be reduced pro rata for the portion of the policy face
amount that we have accelerated to date. However, the unloaned Policy Account
Value will not be reduced by more than the accumulated benefit lien amount.
. ELIMINATION PERIOD. The Long-Term Care Services/SM/ Rider has an elimination
period that is the required period of time while the rider is in force that
must elapse before any benefit is available to the insured person under this
rider. The elimination period is 90 days, beginning on the first day of any
qualified long-term care services that are provided to the insured person.
Except as described below, benefits under this rider will not be paid until the
elimination period is satisfied, and benefits will not be retroactively paid
for the elimination period. The elimination period can be satisfied by any
combination of days of care in a qualified long-term care facility or qualified
days of home health care. The days do not have to be continuous, but the
elimination period must be satisfied within a consecutive period of 24 months
starting with the month in which such services are first provided. If the
elimination period is not satisfied within this time period, you must submit a
new claim for benefits under this rider. This means that a new elimination
period of 90 days must be satisfied within a new 24-month period. The
elimination period must be satisfied only once while this rider is in effect.
Furthermore, and solely at our discretion, we may deem the elimination period
to be satisfied if the insured person provides proof of care from a U.S.
licensed health care provider for at least 60 service days (approximately 5
days a week) within a consecutive period of 90 days starting on the first day
on which such services are first provided.
You can request retroactive payment of benefits for the elimination period if a
U.S. licensed health care practitioner provides written certification that the
insured person is chronically ill and is expected to require qualified
long-term care services for the remainder of the insured person's life, once
the elimination period and all other eligibility requirements have been
satisfied. The amount of any such retroactive payment will be deducted from the
maximum total benefit.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
. PERIOD OF COVERAGE. The period of coverage is the period of time during which
the insured person receives services that are covered under the Long Term Care
Services/SM/ Rider and for which benefits are payable. This begins on the first
day of covered services received after the end of the elimination period. A
period of coverage will end on the earliest of the following dates:
1. the date we receive the notice of release which must be sent to us when the
insured person is no longer receiving qualified long-term care services;
2. the date we determine you are no longer eligible to receive benefits in
accordance with the terms of this rider;
3. the date when you request that we terminate benefit payments under this
rider;
4. the date the accumulated benefit lien amount equals the current long-term
care specified amount;
5. the date you surrender the policy;
6. the date we make a payment under the living benefits rider (for terminal
illness); or
7. the date of death of the insured person.
During a period of coverage:
1. Partial withdrawals, face amount decreases and premium payments are not
permitted.
2. Each monthly benefit payment will increase the accumulated benefit lien
amount by the amount of the payment; this amount will be treated as a lien
against the policy values.
3. If there is an outstanding policy loan at the time we make a benefit
payment, an amount equal to a percentage of the loan and accrued loan
interest will be deducted from the monthly benefit payment and used as a
loan repayment and will reduce the amount otherwise payable to you. This
percentage will equal the monthly benefit payment divided by the portion of
the long-term care specified amount that we have not accelerated to date.
4. The loan extension and paid up death benefit guarantee endorsements will no
longer be applicable at any time once benefits are paid under this rider.
After a period of coverage ends:
1. The face amount of the policy and the long-term care specified amount are
reduced by the accumulated benefit lien amount.
2. The unloaned policy account value will be reduced pro rata to the reduction
in the policy face amount, but not by more than the accumulated benefit lien
amount.
3. Any applicable surrender charges will be reduced pro rata to the reduction
in the policy face amount.
4. The maximum monthly benefit will not be reduced.
5. Any actual premium fund and no lapse guarantee premium fund values that are
used by us to determine whether a guarantee against policy lapse is in
effect will also be reduced pro rata to the reduction in the policy face
amount.
6. Any remaining balance for an outstanding loan and accrued loan interest will
not be reduced.
7. The accumulated benefit lien amount is reset to zero.
The reduction in your policy account value will reduce your unloaned value in
the guaranteed interest option and your values in the variable investment
options in accordance with your monthly deduction allocation percentages then
in effect. If we cannot make the reduction in this way, we will make the
reduction based on the proportion that your unloaned values in the guaranteed
interest option and your values in the variable investment options bear to the
total unloaned value in your policy account.
After the period of coverage has ended, we will provide you with notice of the
adjusted values.
If the entire long-term care specified amount has been paid out during the
period of coverage, this rider will terminate and the policy may terminate.
. RIDER TERMINATION. This rider will terminate, and no further benefits will be
payable (except as provided under the "Extension of Benefits" provision of this
rider), on the earliest of the following:
1. at any time after the first policy year, on the next monthly anniversary on
or following the date we receive your written request to terminate this
rider;
2. upon termination or surrender of the policy;
3. the date of the insured person's death;
4. the date when the accumulated benefit lien amount equals the current
long-term care specified amount;
5. the effective date of the election of the paid up death benefit guarantee;
6. the date you request payment under a living benefits rider due to terminal
illness of the insured person (whether or not monthly benefit payments are
being made as of such date);
7. the date the policy goes on loan extension; or
8. on the date that a new insured person is substituted for the original
insured person under the terms of any substitution of insured rider.
If this rider does not terminate, it will remain in force as long as the policy
remains in force. This rider may be restored after termination if certain
qualifications for restoration of rider benefits are met.
. EXTENSION OF BENEFITS. If this policy lapses before the current long-term
care specified amount has been paid out, while the insured person is confined
in a long-term care facility, benefits for that confinement may be payable
provided that the confinement began while this rider was in force. Benefits may
continue until the earliest of the following dates: (a) the date the insured
person is discharged from such confinement; (b) the date when the current
long-term care specified amount has been paid; or (c) the date of death of the
insured person. If benefits are payable under this provision, there will be no
death benefit payable to the beneficiary or beneficiaries named in the base
policy.
For tax information concerning the Long Term Care Services/SM/ Rider, see "Tax
Treatment of living benefits rider or Long Term Care Services/SM/ Rider under a
policy with the applicable rider" earlier in this prospectus.
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CUSTOMER LOYALTY CREDIT
We provide a customer loyalty credit for policies that have been in force for
more than 8 years. This is added to your policy account value each month. The
dollar amount of the credit is a percentage of the total amount you then have
in your policy account, but excluding any value we are holding as collateral
for any policy loans. The credit begins in the policy's 9th year. The
percentage credit is currently at an annual rate as described in the chart
below depending upon the issue age of the insured as follows:
---------------------------------------------------------------------
ISSUE 25 &
AGE YOUNGER 26 27 28 29 30 31 32 33 34
---------------------------------------------------------------------
.25% .245% .24% .235% .23% .225% .22% .215% .21% .205%
---------------------------------------------------------------------
ISSUE 45 &
AGE 35 36 37 38 39 40 41 42 43 44 OLDER
---------------------------------------------------------------------
.20% .195% .19% .185% .18% .175% .17% .165% .16% .155% .15%
---------------------------------------------------------------------
|
This credit is not guaranteed.
VARIATIONS AMONG INCENTIVE LIFE(R) '06 POLICIES
Time periods and other terms and conditions described in this prospectus may
vary due to legal requirements in your state. These variations will be
reflected in your policy.
AXA Equitable also may vary or waive the charges (including surrender charges)
and other terms of Incentive Life(R) '06 where special circumstances (including
certain policy exchanges) result in sales or administrative expenses or
mortality risks that are different from those normally associated with
Incentive Life(R) '06. We will make such variations only in accordance with
uniform rules that we establish.
AXA Equitable or your financial professional can advise you about any
variations that may apply to your policy.
YOUR OPTIONS FOR RECEIVING POLICY PROCEEDS
BENEFICIARY OF DEATH BENEFIT. You designate your policy's beneficiary in your
policy application. You can change the beneficiary at any other time during the
insured person's life. If no beneficiary is living when the insured person
dies, we will pay the death benefit proceeds in equal shares to the insured
person's surviving children. If there are no surviving children, we will
instead pay the insured person's estate.
PAYMENT OF DEATH BENEFIT. We will pay any death benefit in a single sum. If the
beneficiary is a natural person (i.e., not an entity such as a corporation) and
so elects, death benefit proceeds can be paid through the "AXA Equitable Access
Account", which is a draft account that works in certain respects like an
interest-bearing checking account. In that case, we will send the beneficiary a
draftbook, and the beneficiary will have immediate access to the proceeds by
writing a draft for all or part of the amount of the death benefit proceeds.
AXA Equitable will retain the funds until a draft is presented for payment.
Interest on the AXA Equitable Access Account is earned from the date we
establish the account until the account is closed by your beneficiary or by us
if the account balance falls below the minimum balance requirement, which is
currently $1,000. The AXA Equitable Access Account is part of AXA Equitable's
general account and is subject to the claims of our creditors. We will receive
any investment earnings during the period such amounts remain in the general
account. The AXA Equitable Access Account is not a bank account or a checking
account and it is not insured by the FDIC. Funds held by insurance companies in
the general account are guaranteed by the respective state guaranty association.
A beneficiary residing outside of the U.S., however, cannot elect the AXA
Equitable Access Account. If the beneficiary is a trust that has two or fewer
trustees, death benefit proceeds can be paid through the AXA Equitable Access
Account.
If a financial professional has assisted the beneficiary in preparing the
documents that are required for payment of the death benefit and the
beneficiary so elects, we will send the AXA Equitable Access Account checkbook
or check to the financial professional within the periods specified for death
benefit payments under "When we pay policy proceeds," later in this prospectus.
Our financial professionals will take reasonable steps to arrange for prompt
delivery to the beneficiary.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for informational purposes only. Since these policies are no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You may cancel your policy by returning the policy along with a properly signed
and completed written request for cancellation to our Administrative Office or,
in some states, to the agent who sold it to you, by the 10th day after you
receive it (or such longer period as required under state law). Your coverage
will terminate as of the business day we receive your request at our
Administrative Office (or, in some states, as of the business day the agent
receives your request).
In most states, we will refund the premiums that were paid, less any
outstanding loan and accrued loan interest. In other states, we will refund the
policy account value calculated as of the date the policy was returned, plus
any charges that were deducted from premiums that were paid and from the policy
account value, less any outstanding loan and accrued loan interest.
Your policy will set forth the length of your "free look" period.
In addition to the cancellation right described above, you have the right to
surrender your policy, rather than cancel it. Please see "Surrendering your
policy for its net cash surrender value," earlier in this prospectus.
Surrendering your policy may yield results different than canceling your
policy, including a greater potential for taxable income. In some cases, your
cash value upon surrender may be greater than your contributions to the policy.
Please see "Tax information," earlier in this prospectus for possible
consequences of cancelling your policy.
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10. More information about certain policy charges
DEDUCTING POLICY CHARGES
PURPOSES OF POLICY CHARGES. The charges under the policies are designed to
cover, in the aggregate, our direct and indirect costs of selling,
administering and providing benefits under the policies. They are also
designed, in the aggregate, to compensate us for the risks of loss we assume
pursuant to the policies. If, as we expect, the charges that we collect from
the policies exceed our total costs in connection with the policies, we will
earn a profit. Otherwise, we will incur a loss. In addition to the charges
described below, there are also charges at the Portfolio level, which are
described in the prospectuses of the Portfolios in which the funds invest. For
additional information on all policy charges, see "Risk/benefit summary:
Charges and expenses you will pay."
TRANSACTION CHARGES
On the first day of each policy month, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below (see "Periodic charges" below). In addition, charges may be deducted for
transactions such as premium payments, policy surrenders, requested decreases
in face amount, or transfers among investment options.
. PREMIUM CHARGE. We deduct an amount not to exceed 6% from each premium
payment you send us. Currently, we reduce this charge to 4% after an amount
equal to two "target premiums" has been paid. The "target premium" is
actuarially determined for each policy, based on that policy's specific
characteristics, as well as the policy's face amount, among other factors. In
addition, if your policy includes the accounting benefit endorsement, a portion
of the deductions from premiums will be refunded upon surrender within the
first three policy years (see "Accounting benefit endorsement" in "More
information about policy features and benefits" earlier in this prospectus). A
similar charge applies to premiums attributed to requested face amount
increases that are above your highest previous face amount. The premium charge
is designed in part to defray sales and tax expenses we incur that are based on
premium payments.
. SURRENDER CHARGES. If you give up this policy for its net cash surrender
value before the end of the tenth policy year, or within the first ten years
after a face amount increase over the previous highest base policy face amount,
we will subtract a surrender charge from your policy account value. The
surrender charge in the first policy month of each policy year is shown in your
policy. The initial surrender charge will be between $10.96 and $47.91 per
$1,000 of initial base policy face amount, or base policy face amount increase.
The surrender charge declines uniformly in equal monthly amounts within each
policy year until it reaches zero in the twelfth month of policy year ten. The
initial amount of surrender charge depends on each policy's specific
characteristics. In addition, if your policy includes the accounting benefit
endorsement, the surrender charges are reduced (see "Accounting benefit
endorsement" in "More information about policy features and benefits" earlier
in this prospectus). Changes in the base policy face amount resulting from a
change in death benefit option will not be considered in computing the previous
highest face amount.
The surrender charges are contingent deferred sales charges. They are
contingent because you only pay them if you surrender your policy for its net
cash surrender value (or request a reduction in its face amount, as described
below). They are deferred because we do not deduct them from your premiums.
Because the surrender charges are contingent and deferred, the amount we
collect in a policy year is not related to actual expenses for that year.
The surrender charges assessed in connection with giving up this policy or with
reductions in policy face amount are intended, in part, to compensate us for
the fact that it takes us time to make a profit on your policy, and if you give
up or reduce the face amount of your policy in its early years, we do not have
the time to recoup our costs.
. REQUEST A DECREASE IN YOUR POLICY'S FACE AMOUNT. If there is a requested base
policy face amount reduction within the first ten policy years or within ten
years following a face amount increase, or the paid-up death benefit guarantee
is elected for a reduced amount during a surrender charge period, a
proportionate surrender charge will be deducted from your policy account value.
Assuming you have not previously changed the base policy face amount, a
proportionate surrender charge will be determined by dividing the amount of the
reduction in base policy face amount by the initial base policy face amount of
insurance, and then multiplying that fraction by the surrender charge
immediately before the reduction. The proportionate surrender charge will not
exceed the unloaned policy account value at the time of the reduction. If a
proportionate surrender charge is made, the remaining surrender charge will be
reduced proportionately. We will not deduct a proportionate surrender charge if
the reduction resulted from a change in death benefit option or a partial
withdrawal.
If there have been prior increases in face amount, the decrease will be deemed
to cancel, first, each increase in reverse chronological order (beginning with
the most recent) and then the initial face amount. We will deduct from your
policy account value any surrender charge that is associated with any portion
of the face amount that is thus deemed to be canceled.
. TRANSFERS AMONG INVESTMENT OPTIONS. Although we do not currently charge for
transfers among investment options, we reserve the right to make a transfer
charge up to $25 for each transfer of amounts among your investment options.
The transfer charge, if any, is deducted from the amounts transferred from your
policy's value in the variable investment options and in our guaranteed
interest option based on the proportion that the amount transferred from each
variable investment option and from our guaranteed interest option bears to the
total amount being transferred. Any such charge would be, in part, to
compensate us for our expenses in administering transfers. The charge will
never apply to a transfer of all of your variable investment option amounts to
our guaranteed interest option, or to any transfer pursuant to our automated
transfer service or asset rebalancing service.
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. ADDING A LIVING BENEFITS RIDER. If you elect the living benefits rider after
the policy is issued, we will deduct $100 from your policy account value at the
time of the transaction. This fee is designed, in part, to compensate us for
the administrative costs involved in processing the request.
. EXERCISE OF OPTION TO RECEIVE A TERMINAL ILLNESS "LIVING BENEFIT." If you
elect to receive a terminal illness "living benefit," we will deduct up to $250
from any living benefit we pay. This fee is designed, in part, to compensate us
for the administrative costs involved in processing the request.
SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service. For
certain services, we will deduct from your policy account value any withdrawal
charge that applies and the charge for the special service. Please note that we
may discontinue some or all of these services without notice.
. WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
. EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the amount you request.
. POLICY ILLUSTRATION CHARGE. We do not charge for illustrations. We reserve
the right to charge in the future.
. DUPLICATE POLICY CHARGE. We charge $35 for providing a copy of your policy.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our Administrative Office, or (iii)
by any other means we make available to you.
. POLICY HISTORY CHARGE. We charge a maximum of $50 for providing you a history
of policy transactions. If you request a policy history of less than 5 years
from the date of your request, there is no charge. If you request a policy
history of more than 5 years but less than 10 years from the date of your
request, the current charge is $25. For policy histories of 10 years or more,
the charge is $50. For all policy histories, we reserve the right to charge a
maximum of $50. The charge for this service can be paid (i) using a credit card
acceptable to AXA Equitable, (ii) by sending a check to our Administrative
Office, or (iii) by any other means we make available to you.
. CHARGE FOR RETURNED PAYMENTS. For each payment you make in connection with
your policy is returned for insufficient funds, we will charge a maximum of $25.
PERIODIC CHARGES
On the first day of each month of the policy, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below.
. ADMINISTRATIVE CHARGE. In the first policy year, we deduct $20 from your
policy account value at the beginning of each policy month. In all subsequent
policy years (but not beyond the policy anniversary when the insured person is
attained age 100), we currently deduct $10 from your policy account value at
the beginning of each policy month. We reserve the right to increase or
decrease this latter amount in the future, although it will never exceed $15.
In addition, we deduct between $0.06 and $0.30 per $1,000 of your initial base
policy face amount and any face amount increase at the beginning of each policy
month in the first ten policy years and any 10 year period following a face
amount increase. The administrative charge is intended, in part, to compensate
us for the costs involved in administering the policy.
. COST OF INSURANCE CHARGE. The cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured and the policy year. The monthly cost of
insurance charge is determined by multiplying the cost of insurance rate that
is then applicable to your policy by the amount we have at risk under your
policy divided by $1,000. Our amount at risk (also described in your policy as
"net amount at risk") on any date is the difference between (a) the death
benefit that would be payable if the insured person died on that date and
(b) the then total account value under the policy. A greater amount at risk, or
a higher cost of insurance rate, will result in a higher monthly charge. The
cost of insurance rates are intended, in part, to compensate us for the cost of
providing insurance to you under your policy.
Generally, the cost of insurance rate increases from one policy year to the
next. This happens automatically because of the insured person's increasing age.
On a guaranteed basis, we may deduct between $0.06 and $83.34 per $1,000 of the
amount for which we are at risk under your policy from your policy account
value each month (but not beyond the policy anniversary date when the insured
person is attained age 100). As the amount for which we are at risk at any time
is the death benefit (calculated as of that time) minus your policy account
value at that time, changes in your policy account value resulting from the
performance of your investment options can affect your amount at risk, and as a
result, your cost of insurance. Our cost of insurance rates are guaranteed not
to exceed the maximum rates specified in your policy. For most insured persons
at most ages, our current (non-guaranteed) rates are lower than the maximum
rates. However, we have the ability to raise these rates up to the guaranteed
maximum at any time, subject to any necessary regulatory approvals.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) '06 policies for insureds who are age 18 or above are based on the 1980
Commissioner's Standard Ordinary SB Smoker and NB Non-Smoker Mortality Tables.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life(R) '06 policies for insureds who are under age 18 are based on the 1980
Commissioner's Standard Ordinary Mortality Table B. For all other policies, for
insureds who are age 18 or above, the guaranteed maximum cost of insurance
rates are based on the 1980 Commissioner's Standard Ordinary Male and Female
Smoker and Non-Smoker Mortality Tables. For insureds who are under age 18, the
guaranteed maximum cost of insurance rates are based on the 1980 Commissioner's
Standard Ordinary Male and Female Mortality Tables.
Our cost of insurance rates will generally be lower (except for gender-neutral
policies and in connection with certain employee benefit plans) if the insured
person is a female than if a male. They also will generally be lower for
non-tobacco users than tobacco users and
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lower for persons that have other highly favorable health characteristics, as
compared to those that do not. On the other hand, insured persons who present
particular health, occupational or avocational risks may be charged higher cost
of insurance rates and other additional charges as specified in their policies.
In addition, the current rates also vary depending on the duration of the
policy (i.e., the length of time since the policy was issued).
For policies issued at ages 0-17, an insured person's cost of insurance rate is
not based on that person's status as a tobacco user or non-tobacco user.
Effective with the policy anniversary when that insured person reaches attained
age 18, non-tobacco user cost of insurance rates will be charged for that
person. That insured person may also be eligible for a more favorable rating,
subject to our underwriting rules.
We offer lower rates for non-tobacco users only if they are at least age 18.
You may generally ask us to review the tobacco habits of an insured person
issue age 18 or over in order to change the charge from tobacco user rates to
non-tobacco user rates. The change, if approved, may result in lower future
cost of insurance rates beginning on the effective date of the change to
non-tobacco user rates.
The change will be based upon our general underwriting rules in effect at the
time of application, and may include criteria other than tobacco use status as
well as a definition of tobacco use different from that applicable at the time
this policy was issued.
Similarly, after the first policy year, you may request us to review the
insured person's rating to see if they qualify for a reduction in future cost
of insurance rates. Any such change will be based upon our general underwriting
rules in effect at the time of application, and may include various criteria.
For information concerning possible limitations on any changes, please see
"2009 or later increases in benefits or coverage, addition of riders, or
certain other policy changes" in "Tax information" earlier in this prospectus.
The change in rates, if approved, will take effect at the beginning of the
policy month that coincides with or next follows the date we approve your
request. This change may have adverse tax consequences.
. MORTALITY AND EXPENSE RISK CHARGE. We will collect a monthly charge for
mortality and expense risk. We are committed to fulfilling our obligations
under the policy and providing service to you over the lifetime of your policy.
Despite the uncertainty of future events, we guarantee that monthly
administrative and cost of insurance deductions from your policy account value
will never be greater than the maximum amounts shown in your policy. In making
this guarantee, we assume the mortality risk that insured persons (as a group)
will live for shorter periods than we estimated. When this happens, we have to
pay a greater amount of death benefit than we expected to pay in relation to
the cost of insurance charges we received. We also assume the expense risks
that the cost of issuing and administering policies will be greater than we
expected. This charge is designed, in part, to compensate us for taking these
risks.
We deduct a monthly charge at an annual rate of 0.85% of the value in your
policy's variable investment options during the first 8 policy years, with no
charge in policy year 9 and thereafter. We reserve the right to increase or
decrease this charge in the future, although it will never exceed 1.00% during
policy years 1-10, and 0.50% during policy years 11 and later. This charge will
be calculated at the beginning of each policy month as a percentage of the
amount of the policy account that is then allocated to the variable investment
options.
. LOAN INTEREST SPREAD. We charge interest on policy loans but credit you with
interest on the amount of the policy account we hold as collateral for the
loan. The loan interest spread is the excess of the interest rate we charge
over the interest rate we credit. The loan interest spread will not exceed 1%.
We deduct this charge on each policy anniversary date, or on loan termination,
if earlier. For more information on how this charge is deducted, see "Borrowing
from your policy" under "Accessing your money" earlier in this prospectus. As
with any loan, the interest we charge on the loans is intended, in part, to
compensate us for the time value of the money we are lending and the risk that
you will not repay the loan.
OPTIONAL RIDER CHARGES
If you elected the following riders, the following charges, which are designed
to offset the cost of their respective riders, are deducted from your policy
account value, on the first day of each month of the policy. The costs of each
of the riders below are designed, in part, to compensate us for the additional
insurance risk we take on in providing each of these riders and the
administrative costs involved in administering them:
. CHILDREN'S TERM INSURANCE. If you chose this rider, we deduct $0.50 per
$1,000 of rider benefit amount from your policy account value each month until
the insured under the base policy reaches age 65, while the rider is in effect.
The charge for this rider does not vary depending upon the specifics of your
policy. However, we will continue to charge you for the rider, even after all
of your children, stepchildren and legally adopted children have reached age 25
(when a child's coverage under the rider terminates), unless you notify us in
writing that you wish to cancel this rider.
. DISABILITY DEDUCTION WAIVER. If you chose this rider, we deduct an amount
from your policy account value each month until the insured under the base
policy reaches age 65, while the rider is in effect. This amount is between 7%
and 132% of all the other monthly charges (including charges for other riders
elected) deducted from your policy account value on a guaranteed basis. The
current monthly charges for this rider are lower than the maximum monthly
charges.
. DISABILITY PREMIUM WAIVER. If you chose this rider, we deduct an amount from
your policy account value each month while the rider is in effect. This amount
is between $0.02 and $0.69 per $1,000 of initial base policy face amount. We
will establish a similar charge for requested base policy face amount
increases. If you also select certain of the other optional riders available
under your policy, we will deduct additional amounts from your policy account
value per $1,000 of rider benefit amount each month while both the other rider
and this rider are in effect. If you choose the children's term insurance, we
will deduct an amount between $0.01 and $0.03. If you choose the Long Term Care
Services/SM/ Rider, we will deduct an amount between $0.0009 and $0.02. These
amounts are in addition to the charges for the riders themselves.
. LONG TERM CARE SERVICES/SM/ RIDER. If you chose this rider on a guaranteed
basis, we may deduct between $0.08 and $1.18 per $1,000 of the amount for which
we are at risk under the rider from
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your policy account value each month until the insured under the base policy
reaches age 100 while the rider is in effect, but not when rider benefits are
being paid. The amount at risk for this rider is the long-term care specified
amount minus your policy account value, but not less than zero. The current
monthly charges to this rider are lower than the maximum monthly charges.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
. Management fees.
. 12b-1 fees.
. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
. Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. Certain portfolios available under the contract
in turn invest in shares of other portfolios of AXA Premier VIP Trust and EQ
Advisors Trust and/or shares of unaffiliated portfolios (collectively, the
"underlying portfolios"). The underlying portfolios each have their own fees
and expenses, including management fees, operating expenses, and investment
related expenses such as brokerage commissions. For more information about
these charges, please refer to the prospectuses for the Trusts.
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11. More information about procedures that apply to your policy
This section provides further detail about certain subjects that are addressed
in the previous pages. The following discussion generally does not repeat the
information already contained in those pages.
DATES AND PRICES AT WHICH POLICY EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your policy will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
DATE OF RECEIPT. Where this prospectus refers to the day when we receive a
payment, request, election, notice, transfer or any other transaction request
from you, we usually mean the day on which that item (or the last thing
necessary for us to process that item) arrives in complete and proper form at
our Administrative Office or via the appropriate telephone or fax number if the
item is a type we accept by those means. There are two main exceptions: if the
item arrives (1) on a day that is not a business day or (2) after the close of
a business day, then, in each case, we are deemed to have received that item on
the next business day.
BUSINESS DAY. Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). A business day
does not include a day on which we are not open due to emergency conditions
determined by the Securities and Exchange Commission. We may also close early
due to such emergency conditions. We compute unit values for our variable
investment options as of the end of each business day.
PAYMENTS YOU MAKE. The following are reflected in your policy as of the date we
receive them in complete and proper form:
. premium payments received after the policy's investment start date
(discussed below)
. loan repayments and interest payments
REQUESTS YOU MAKE. The following transactions occur as of the date we receive
your request in complete and proper form:
. withdrawals
. tax withholding elections
. face amount decreases that result from a withdrawal
. changes of allocation percentages for premium payments or monthly deductions
. surrenders
. changes of owner
. changes of beneficiary
. transfers from a variable investment option to the guaranteed interest
option
. changes in form of death benefit payment
. loans
. transfers among variable investment options
. assignments
. termination of paid up death benefit guarantee
The following transactions occur on your policy's next monthly anniversary that
coincides with or follows the date we approve your request:
. changes in face amount
. election of paid up death benefit guarantee
. changes in death benefit option
. restoration of terminated policies
. termination of any additional benefit riders you have elected
AUTOMATIC TRANSFER SERVICE. Transfers pursuant to our automatic transfer
service (dollar-cost averaging) occur as of the first day of each policy month.
If you request the automatic transfer service in your original policy
application, the first transfer will occur as of the first day of the second
policy month after your policy's initial Allocation Date. If you request this
service at any later time, we make the first such transfer as of your policy's
first monthly anniversary that coincides with or follows the date we receive
your request.
ASSET REBALANCING SERVICE. If you request the asset rebalancing service, the
first redistribution will be on the date you specify or the date we receive
your request, if later. However, no rebalancing will occur before your policy's
Allocation Date. Subsequent periodic rebalancings occur quarterly, semiannually
or annually, as you have requested.
DELAY IN CERTAIN CASES. We may delay allocating any payment you make to our
variable investment options, or any transfer, for the same reasons stated in
"Delay of variable investment option proceeds" later in this prospectus. We may
also delay such transactions for any other legally permitted purpose.
PRICES APPLICABLE TO POLICY TRANSACTIONS. If a transaction will increase or
decrease the amount you have in a variable investment option as of a certain
date, we process the transaction using the unit values for that option computed
as of that day's close of business, unless that day is not a business day. In
that case, we use unit values computed as of the next business day's close.
EFFECT OF DEATH OR SURRENDER. You may not make any surrender or partial
withdrawal request after the insured person has died. Also, all insurance
coverage ends on the date as of which we process any request for a surrender.
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POLICY ISSUANCE
REGISTER DATE. When we issue a policy, we assign it a "register date," which
will be shown in the policy. We measure the months, years, and anniversaries of
your policy from your policy's register date.
. If you submit the full minimum initial premium to your financial
professional at the time you sign the application and before the policy is
issued, and we issue the policy as it was applied for, then the register
date will be the later of (a) the date you signed part I of the policy
application or (b) the date a medical professional signed part II of the
policy application.
. If we do not receive your full minimum initial premium at our
Administrative Office before the issue date or, if we issue the policy on a
different basis than you applied for, the register date initially will
appear on your policy as the date the policy is issued; however, we will
move the register date to the date we deliver the policy provided we
received your full minimum initial premium. This will ensure that premiums
and charges will commence on the same date as your insurance coverage. If
your policy was delivered on the 29th, 30th or 31st of the month, we will
move the register date to the 1st of the following month. This could change
the current interest rate for the guaranteed interest option.
We may also permit an earlier than customary register date (a) for
employer-sponsored cases, to accommodate a common register date for all
employees or (b) to provide a younger age at issue. (A younger age at issue
reduces the monthly charges that we deduct under a policy.) The charges and
deductions commence as of the register date, even when we have permitted an
early register date. We may also permit policy owners to delay a register date
(up to three months) in employer-sponsored cases.
INVESTMENT START DATE. This is the date your investment first begins to earn a
return for you. Generally, this is the register date. Before this date, your
initial premium will be held in a non-interest bearing account. If we move your
register date as described in the second bullet under "Policy issuance," above,
we will also move your investment start date and/or interest crediting date to
coincide with the register date.
COMMENCEMENT OF INSURANCE COVERAGE. You must give the full minimum initial
premium to your financial professional on or before the day the policy is
delivered to you. No insurance under your policy will take effect unless
(1) the insured person is still living at the time such payment and delivery
are completed and (2) the information in the application continues to be true
and complete, without material change, as of the time of such payment. If you
submit the full minimum initial premium with your application, we may, subject
to certain conditions, provide a limited amount of temporary insurance on the
proposed insured person. You may request and review a copy of our temporary
insurance agreement for more information about the terms and conditions of that
coverage.
NON-ISSUANCE. If, after considering your application, we decide not to issue a
policy, we will refund any premium you have paid, without interest.
AGE; AGE AT ISSUE. Unless the context in this prospectus requires otherwise, we
consider the insured person's "age" during any policy year to be his or her age
on his or her birthday nearest to the beginning of that policy year. For
example, the insured person's age for the first policy year ("age at issue") is
that person's age on whichever birthday is closer to (i.e., before or after)
the policy's register date.
WAYS TO MAKE PREMIUM AND LOAN PAYMENTS
CHECKS AND MONEY ORDERS. Premiums or loan payments generally must be paid by
check or money order drawn on a U.S. bank in U.S. dollars and made payable to
"AXA Equitable Life Insurance Company."
We prefer that you make each payment to us with a single check drawn on your
business or personal bank account. We also will accept a single money order,
bank draft or cashier's check payable directly to AXA Equitable, although we
must report such "cash equivalent" payments to the Internal Revenue Service
under certain circumstances. Cash and travelers' checks, or any payments in
foreign currency, are not acceptable. We will accept third-party checks payable
to someone other than AXA Equitable and endorsed over to AXA Equitable only
(1) as a direct payment from a qualified retirement plan or (2) if they are
made out to a trustee who owns the policy and endorses the entire check
(without any refund) as a payment to the policy.
ASSIGNING YOUR POLICY
You may assign (transfer) your rights in a policy to someone else as collateral
for a loan, to effect a change of ownership or for some other reason, if we
agree. Collateral assignments may also sometimes be used in connection with
dividing the benefits of the policy under a split-dollar arrangement, which
will also have its own tax consequences. A copy of the assignment must be
forwarded to our Administrative Office. We are not responsible for any payment
we make or any action we take before we receive notice of the assignment or for
the validity of the assignment. An absolute assignment is a change of ownership.
Certain transfers for value may subject you to income tax and penalties and
cause the death benefit to lose its income-tax free treatment. Further, a gift
of a policy that has a loan outstanding may be treated as part gift and part
transfer for value, which could result in both gift tax and income tax
consequences. The IRS issued regulations in both 2002 and 2003 concerning
split-dollar arrangements, including policies subject to collateral
assignments. The regulations provide both new and interim guidance as to the
taxation of such arrangements. These regulations address taxation issues in
connection with arrangements which are compensatory in nature, involve a
shareholder and corporation, or a donor and donee. See also discussion under
"Split-dollar and other employee benefit programs" and "Estate, gift, and
generation-skipping taxes" in the "Tax information" section of this prospectus.
You should consult your tax advisor prior to making a transfer or assignment.
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
NOTE: Notwithstanding the information further below, based upon our current
understanding of federal tax rules at the time this prospectus was prepared, we
are not permitting changes of a policy's insured person. For further
information, please see "2009 or later
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increases in benefits or coverage, addition of riders, or certain other policy
changes" under "Tax information" earlier in this prospectus. The following
information, therefore, does not apply, absent IRS guidance that would permit
such changes.
After the policy's second year, we will permit you to request that a new
insured person replace the existing one subject to our rules then in effect.
This requires that you provide us with adequate evidence that the proposed new
insured person meets our requirements for insurance. Other requirements are
outlined in your policy.
Upon making this change, the monthly insurance charges we deduct will be based
on the new insured person's insurance risk characteristics. In addition, any no
lapse guarantee and Long-Term Care Services/SM/ Rider will terminate. It may
also affect the face amount that a policy will have if you subsequently elect
the paid up death benefit guarantee. The change of insured person will not,
however, affect the surrender charge computation for the amount of coverage
that is then in force.
Substituting the insured person is a taxable event and may, depending upon
individual circumstances, have other tax consequences as well. For example, the
change could cause the policy to be a "modified endowment contract" or to fail
the Internal Revenue Code's definition of "life insurance," or in some cases
require that we also distribute certain amounts to you from the policy. See
"Tax information" earlier in this prospectus. You should consult your tax
advisor prior to substituting the insured person. As a condition to
substituting the insured person we may require you to sign a form acknowledging
the potential tax consequences. In no event, however, will we permit a change
that we believe causes your policy to fail the definition of life insurance or
causes the policy to lose its ability to be tested under the 1980 CSO table.
See "2009 or later increases in benefits or coverage, addition of riders, or
certain other policy changes" under "Tax information" earlier in this
prospectus. Also, if the paid up death benefit guarantee is in effect or your
policy is on loan extension, you may not request to substitute the insured
person.
REQUIREMENTS FOR SURRENDER REQUESTS
Your surrender request must include the policy number, your name, your taxpayer
identification number, the name of the insured person, and the address where
proceeds should be mailed. The request must be signed by you, as the owner, and
by any joint owner, collateral assignee or irrevocable beneficiary. We may also
require you to complete specific tax forms, or provide a representation that
your policy is not being exchanged for another life or annuity contract.
GENDER-NEUTRAL POLICIES
Congress and various states have from time to time considered legislation that
would require insurance rates to be the same for males and females. In
addition, employers and employee organizations should consider, in consultation
with counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of Incentive Life(R) '06 in connection with an employment-related
insurance or benefit plan. In a 1983 decision, the United States Supreme Court
held that, under Title VII, optional annuity benefits under a deferred
compensation plan could not vary on the basis of sex.
There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life(R) '06 policies sold in Montana. We will also make such
gender-neutral policies available on request in connection with certain
employee benefit plans. Cost of insurance rates applicable to a gender-neutral
policy will not be greater than the comparable male rates under a gender
specific Incentive Life(R) '06 policy.
FUTURE POLICY EXCHANGES
We may at some future time, under certain circumstances and subject to
applicable law, allow the current owner of this policy to exchange it for a
universal life policy we are then offering. The exchange may or may not be
advantageous to you, based on all of the circumstances, including a comparison
of contractual terms and conditions and charges and deductions. We will provide
additional information upon request at such time as exchanges may be permitted.
BROKER TRANSACTION AUTHORITY
After your policy has been issued, we may accept transfer requests and changes
to your premium allocation instructions or fund transfers by telephone, mail,
facsimile or electronically, and requests for our automatic transfer service or
asset rebalancing service in writing, by mail or facsimile, from your financial
professional, provided that we have your prior written authorization to do so
on file. Accordingly, AXA Equitable will rely on the stated identity of the
person placing instructions as authorized to do so on your behalf. AXA
Equitable will not be liable for any claim, loss, liability or expenses that
may arise out of such instructions. AXA Equitable will continue to rely on this
authorization until it receives your written notification at its processing
office that you have withdrawn this authorization. AXA Equitable may change or
terminate telephone or electronic or overnight mail transfer procedures at any
time without prior notice and restrict facsimile, internet, telephone and other
electronic transfer services because of disruptive transfer activity. AXA
Equitable may terminate any such authorization at any time without prior notice.
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12. More information about other matters
ABOUT THE GENERAL ACCOUNT
This policy is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a policy's account value or any guaranteed benefits with which the policy
was issued. AXA Equitable is solely responsible to the policy owner for the
policy's account value and such guaranteed benefits. The general obligations
and any guaranteed benefits under the policy are supported by AXA Equitable's
general account and are subject to AXA Equitable's claims paying ability. An
owner should look to the financial strength of AXA Equitable for its claims
paying ability. Assets in the general account are not segregated for the
exclusive benefit of any particular policy or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the New York
State Department of Financial Services and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business.
Interests under the policies in the general account have not been registered
and are not required to be registered under the Securities Act of 1933 because
of exemptions and exclusionary provisions that apply. The general account is
not required to register as an investment company under the Investment Company
Act of 1940 and it is not registered as an investment company under the
Investment Company Act of 1940. The policy is a "covered security" under the
federal securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities law relating to the accuracy and completeness of statements
made in prospectuses.
TRANSFERS OF YOUR POLICY ACCOUNT VALUE
TRANSFERS NOT IMPLEMENTED. If a request cannot be fully administered, only the
part that is in good order will be processed. Any part of the request that
cannot be processed will be denied and an explanation will be provided to you.
This could occur, for example, where the request does not comply with our
transfer limitations, or where you request transfer of an amount greater than
that currently allocated to an investment option.
Similarly, the automatic transfer service will terminate immediately if:
(1) your amount in the EQ/Money Market option is insufficient to cover the
automatic transfer amount; (2) your policy is in a grace period; (3) we receive
notice of the insured person's death; or (4) you have either elected the paid
up death benefit guarantee or your policy is placed on loan extension.
Similarly, the asset rebalancing program will terminate if either (2), (3) or
(4) occurs.
DISRUPTIVE TRANSFER ACTIVITY. You should note that the policy is not designed
for professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy. The policy is not designed to
accommodate programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small-and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small-and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio
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performance will be affected by such activity; and (3) the design of market
timing procedures involves inherently subjective judgments, which we seek to
make in a fair and reasonable manner consistent with the interests of all
policy owners.
We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us policy
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a policy is identified in connection with potentially disruptive transfer
activity for the first time, a letter is sent to the policy owner explaining
that AXA Equitable has a policy against disruptive transfer activity and that
if such activity continues, certain transfer privileges may be eliminated. If
and when the policy owner is identified a second time as engaged in potentially
disruptive transfer activity under the policy, we currently prohibit the use of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected policy. We or a trust may change the
definition of potentially disruptive transfer activity, the monitoring
procedures and thresholds, any notification procedures, and the procedures to
restrict this activity. Any new or revised policies and procedures will apply
to all policy owners uniformly. We do not permit exceptions to our policies
restricting disruptive transfer activity.
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our policy owners, we will work with the
unaffiliated trust to review policy owner trading activity. Each trust reserves
the right to reject a transfer that it believes, in its sole discretion, is
disruptive (or potentially disruptive) to the management of one of its
portfolios. Please see the prospectuses for the trusts for more information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by policy owners. As of the date of this
prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the policy owner.
Policy owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, policy owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
policy owners may be treated differently than others, resulting in the risk
that some policy owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
TELEPHONE AND INTERNET REQUESTS
If you are a properly authorized person, you may make transfers between
investment options over the Internet as described earlier in this prospectus in
"How to make transfers" under "Transferring your money among our investment
options."
Also, you may make the following additional types of requests by calling the
number under "By Phone:" in "How to reach us" from a touch-tone phone, if the
policy is individually owned and you are the owner, or through axa.com or
us.axa.com for those outside the U.S. if you are the individual owner:
. changes of premium allocation percentages
. changes of address
. request forms and statements
. to request a policy loan (loan requests cannot be made online by corporate
policyholders)
. enroll for electronic delivery and view statements/documents online
. to pay your premium or make a loan repayment
For security purposes, all telephone requests are automatically tape-recorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine.
If you wish to enroll through axa.com or us.axa.com for those outside the U.S.,
you must first agree to the terms and conditions set forth in our axa.com or
us.axa.com for those outside the U.S., Online Services Agreement, which you can
find at our website. We will send you a confirmation letter by first class
mail. Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
transactions. We will assume that all instructions received through axa.com or
us.axa.com for those outside the U.S., are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to axa.com
or us.axa.com for those outside the U.S., if we have reason to believe the
instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet
transactions if we have reason to believe that the request compromises the
general security and/or integrity of our automated systems (see discussion of
"Disruptive transfer activity" above).
Any telephone, Internet or fax transaction request that is not completed by the
close of a business day (which is usually 4:00 p.m.
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Eastern Time) will be processed as of the next business day. During times of
extreme market activity, or for other reasons, you may be unable to contact us
to make a telephone or Internet request. If this occurs, you should submit a
written transaction request to our Administrative Office. We reserve the right
to discontinue telephone or Internet transactions, or modify the procedures and
conditions for such transactions, without notifying you, at any time.
CYBERSECURITY
We rely heavily on interconnected computer systems and digital data to conduct
our variable life insurance product business. Because our variable life
insurance product business is highly dependent upon the effective operation of
our computer systems and those of our business partners, our business is
vulnerable to disruptions from utility outages, and susceptible to operational
and information security risks resulting from information systems failure
(e.g., hardware and software malfunctions), and cyber-attacks. These risks
include, among other things, the theft, misuse, corruption and destruction of
data maintained online or digitally, interference with or denial of service,
attacks on websites and other operational disruption and unauthorized use or
abuse of confidential customer information. Such systems failures and
cyber-attacks affecting us, any third party administrator, the underlying
funds, intermediaries and other affiliated or third-party service providers may
adversely affect us and your policy account value. For instance, systems
failures and cyber-attacks may interfere with our processing of policy
transactions, including the processing of orders from our website or with the
underlying funds, impact our ability to calculate your policy account value,
cause the release and possible destruction of confidential customer or business
information, impede order processing, subject us and/or our service providers
and intermediaries to regulatory fines and financial losses and/or cause
reputational damage. Cybersecurity risks may also impact the issuers of
securities in which the underlying funds invest, which may cause the funds
underlying your policy to lose policy account value. While there can be no
assurance that we or the underlying funds or our service providers will avoid
losses affecting your policy due to cyber-attacks or information security
breaches in the future, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
SUICIDE AND CERTAIN MISSTATEMENTS
If an insured person commits suicide within certain time periods, the amount of
death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of an insured person, we will adjust
the amount of any death benefit (and certain rider benefits), as described in
the policy (or rider).
WHEN WE PAY POLICY PROCEEDS
GENERAL. We will generally pay any death benefit, surrender, withdrawal, or
loan within seven days after we receive the request and any other required
items.
CLEARANCE OF CHECKS. We reserve the right to defer payment of that portion of
your policy account value that is attributable to a premium payment or loan
repayment made by check for a reasonable period of time (not to exceed 15 days)
to allow the check to clear the banking system.
DELAY OF GUARANTEED INTEREST OPTION PROCEEDS. We also have the right to defer
payment or transfers of amounts out of our guaranteed interest option for up to
six months. If we delay more than 30 days in paying you such amounts, we will
pay interest of at least 3% per year from the date we receive your request.
DELAY OF VARIABLE INVESTMENT OPTION PROCEEDS. We reserve the right to defer
payment of any death benefit, transfer, loan or other distribution that is
derived from a variable investment option if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings) or trading on that
exchange is restricted; (b) the SEC has declared that an emergency exists, as a
result of which disposal of securities is not reasonably practicable or it is
not reasonably practicable to fairly determine the policy account value; or
(c) the law permits the delay for the protection of owners. If we need to defer
calculation of values for any of the foregoing reasons, all delayed
transactions will be processed at the next available unit values.
DELAY TO CHALLENGE COVERAGE. We may challenge the validity of your insurance
policy or any rider based on any material misstatements in an application you
have made to us. We cannot make such challenges, however, beyond certain time
limits set forth in the policy or rider. If the insured person dies within one
of these limits, we may delay payment of any proceeds until we decide whether
to challenge the policy.
CHANGES WE CAN MAKE
In addition to any of the other changes described in this prospectus, we have
the right to modify how we or Separate Account FP operate. For example, we have
the right to:
. combine two or more variable investment options or withdraw assets relating
to Incentive Life(R) '06 from one investment option and put them into
another;
. end the registration of, or re-register, Separate Account FP under the
Investment Company Act of 1940;
. operate Separate Account FP under the direction of a "committee" or
discharge such a committee at any time;
. restrict or eliminate any voting rights or privileges of policy owners (or
other persons) that affect Separate Account FP;
. operate Separate Account FP, or one or more of the variable investment
options, in any other form the law allows. This includes any form that
allows us to make direct investments, in which case we may charge Separate
Account FP an advisory fee. We may make any legal investments we wish for
Separate Account FP. In addition, we may disapprove any change in
investment advisers or in investment policy unless a law or regulation
provides differently.
If we take any action that results in a material change in the underlying
investments of a variable investment option, we will notify you to the extent
required by law. We may, for example, cause the variable investment option to
invest in a mutual fund other than, or in addition to, the Trusts. If you then
wish to transfer the amount you have in that option to another investment
option, you may do so.
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We may make any changes in the policy or its riders, require additional premium
payments, or make distributions from the policy to the extent we deem necessary
to ensure that your policy qualifies or continues to qualify as life insurance
for tax purposes. Any such change will apply uniformly to all policies that are
affected. We will give you written notice of such changes. Subject to all
applicable legal requirements, we also may make other changes in the policies
that do not reduce any net cash surrender value, death benefit, policy account
value, or other accrued rights or benefits.
Whether to make any of the above discussed changes is generally within our
discretion, although some such changes might require us to obtain regulatory or
policy owner approval. Whether regulatory or policy owner approval is required
would depend on the nature of the change and, in many cases, the manner in
which the change is implemented. You should not assume, therefore, that you
necessarily will have an opportunity to approve or disapprove any such changes.
We will, of course, comply with applicable legal requirements, including notice
to or approval by policy owners where required in particular cases.
It is not possible to foresee all of the circumstances under which we may find
it necessary or appropriate to exercise our right to make changes. Such
circumstances could, however, include changes in law, or interpretations
thereof; changes in financial or investment market conditions; changes in
accepted methods of conducting operations in the relevant market; or a desire
to achieve material operating economies or efficiencies.
REPORTS WE WILL SEND YOU
Shortly after the end of each year of your policy, we will send you a report
that includes information about your policy's current death benefit, policy
account value, cash surrender value (i.e., policy account value minus any
current surrender charge), policy loans, policy transactions and amounts of
charges deducted. We will send you individual notices to confirm your premium
payments, loan repayments, transfers and certain other policy transactions.
Please promptly review all statements and confirmations and notify us
immediately at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside
of the U.S.) if there are any errors.
DISTRIBUTION OF THE POLICIES
The policies are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account FP. The
offering of the policies is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Equitable Holdings, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors
are registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The policies are sold by financial professionals of AXA Advisors and its
affiliates. The policies are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with AXA
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on policies sold.
AXA Equitable may also make additional payments to the Distributors, and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. All payments will be in compliance with all applicable FINRA
rules and other laws and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its policies, none of
the compensation paid to the Distributors or the Selling broker-dealers
discussed in this section of the prospectus are imposed as separate fees or
charges under your policy. AXA Equitable, however, intends to recoup amounts it
pays for distribution and other services through the fees and charges of the
policy and payments it receives for providing administrative, distribution and
other services to the Portfolios. For information about the fees and charges
under the policy, see "Risk/benefit summary: Charges and expenses you will pay"
and "More information about certain policy charges" earlier in this prospectus.
As used below, the "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount and Distributor, among other factors.
AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors
based on premium payments made on the policies sold through AXA Advisors
("premium-based compensation"). The premium-based compensation will generally
not exceed 99% of premiums you pay up to one target premium in your policy's
first year; plus 8.5% of all other premiums you pay in your policy's first
year; plus 11% of all other premiums you pay in policy years two and later. AXA
Advisors, in turn, may pay a portion of the premium-based compensation received
from AXA Equitable to the AXA Advisors financial professional and/or the
Selling broker-dealer making the sale. Your AXA Advisors financial professional
will receive premium-based compensation in combination with ongoing annual
compensation based on a percentage of the account value of the policy sold
("asset-based compensation"). Total compensation paid to a financial
professional or a Selling broker-dealer electing to receive both premium-based
and asset-based compensation could, over time, exceed the total compensation
that would otherwise be paid on the basis of premiums alone. The compensation
paid by AXA Advisors varies among financial professionals and among Selling
broker-dealers. AXA Advisors also pays a portion of the compensation it
receives to its managerial personnel. When a policy is sold by a Selling
broker-dealer, the Selling broker-dealer, not AXA Advisors, determines the
compensation paid to the Selling broker-dealer's financial professional for the
sale of the policy. Therefore, you should contact your financial professional
for information about the compensation he or she receives and any related
incentives, as described immediately below.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their policy.
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MORE INFORMATION ABOUT OTHER MATTERS
AXA Advisors also pays its financial professionals and managerial personnel
other types of compensation including service fees, expense allowance payments
and health and retirement benefits. AXA Advisors also pays its financial
professionals, managerial personnel and Selling broker-dealers sales bonuses
(based on selling certain products during specified periods) and persistency
bonuses. AXA Advisors may offer sales incentive programs to financial
professionals and Selling broker-dealers who meet specified production levels
for the sales of both AXA Equitable policies and policies offered by other
companies. These incentives provide non-cash compensation such as stock options
awards and/or stock appreciation rights, expense-paid trips, expense-paid
education seminars and merchandise.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of premium-based compensation and/or asset-based
compensation for the sale of an AXA Equitable policy than it pays for the sale
of a policy or other financial product issued by a company other than AXA
Equitable. AXA Advisors may pay higher compensation on certain products in a
class than others based on a group or sponsored arrangement, or between older
and newer versions or series of the same policy. This practice is known as
providing "differential compensation." Differential compensation may involve
other forms of compensation to AXA Advisors personnel. Certain components of
the compensation paid to managerial personnel are based on whether the sales
involve AXA Equitable policies. Managers earn higher compensation (and credits
toward awards and bonuses) if the financial professionals they manage sell a
higher percentage of AXA Equitable policies than products issued by other
companies. Other forms of compensation provided to its financial professionals
and/or managerial personnel include health and retirement benefits, expense
reimbursements, marketing allowances and premium-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
policies and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable policy over a policy or
other financial product issued by a company not affiliated with AXA Equitable.
However, under applicable rules of FINRA and other federal and state regulatory
authorities, AXA Advisors financial professionals may only recommend to you
products that they reasonably believe are suitable for you and, for certain
accounts depending on applicable rules, that are in your best interest, based
on the facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals of AXA Advisors may nonetheless face conflicts of interest
because of the differences in compensation from one product category to
another, and because of differences in compensation among products in the same
category. For more information, contact your financial professional.
AXA DISTRIBUTORS COMPENSATION. AXA Equitable pays premium-based and asset-based
compensation (together "compensation") to AXA Distributors. Premium-based
compensation is paid based on AXA Equitable policies sold through AXA
Distributor's Selling broker-dealers. Asset-based compensation is paid based on
the unloaned account value of policies sold through certain of AXA
Distributor's Selling broker-dealers. Premium-based compensation will generally
not exceed 120% of the premiums you pay up to one target premium in your
policy's first year; plus 5% of all other premiums you pay in your policy's
first year; plus 2.8% of all other premiums you pay in policy years two through
ten, and 2% thereafter. Asset-based compensation up to 0.15% in policy years
6-10 and up to 0.10% in policy years 11 and later may also be paid. AXA
Distributors, in turn, pays a portion of the compensation it receives to the
Selling broker-dealer making the sale. The compensation paid by AXA
Distributors varies among Selling broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the amount and type
of compensation paid to the Selling broker-dealer's financial professional for
the sale of the policy. Therefore, you should contact your financial
professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
These payments above also include compensation to cover operating expenses and
marketing services under the terms of AXA Equitable's distribution agreements
with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. AXA
Distributors may pay, out of its assets, certain Selling broker-dealers and
other financial intermediaries additional compensation in recognition of
services provided or expenses incurred. AXA Distributors may also pay certain
Selling broker-dealers or other financial intermediaries additional
compensation for enhanced marketing opportunities and other services (commonly
referred to as "marketing allowances"). Services for which such payments are
made may include, but are not limited to, the preferred placement of AXA
Equitable products on a company and/or product list; sales personnel training;
product training; business reporting; technological support; due diligence and
related costs; advertising, marketing and related services; conference; and/or
other support services, including some that may benefit the policy owner.
Payments may be based on ongoing sales, on the aggregate account value
attributable to policies sold through a Selling broker-dealer or such payments
may be a fixed amount. For certain selling broker-dealers, AXA Distributors
increases the marketing allowance as certain sales thresholds are met. AXA
Distributors may also make fixed payments to Selling broker-dealers, for
example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable policies exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable policies over policies and other products
issued by other companies. Not all Selling broker-dealers receive additional
payments, and the payments vary among Selling broker-dealers. The list below
includes the names of Selling broker-dealers that we are aware (as of
December 31, 2018) received additional payments. These additional payments
ranged from $536.67 to $6,370,912.47. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers,
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MORE INFORMATION ABOUT OTHER MATTERS
which may provide an incentive for the Selling broker-dealers to promote the
sale of AXA Equitable policies over policies and other products issued by other
companies. The list below includes any such Selling broker-dealer. For more
information, ask your financial professional.
1st Global Capital Corp.
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Securities, Inc.
Cambridge Investment Research
Capital Investment Group
Centaurus Financial, Inc.
CETERA Financial Group
Citigroup Global Markets, Inc.
Citizens Investment Services
Commonwealth Financial Network
Community America Financial Solution
CUNA Brokerage Services
CUSO Financial Services, L.P.
DPL Financial Partners
Equity Services Inc.
Farmer's Financial Solution
Geneos Wealth Management
Gradient Securities, LLC
H. Beck, Inc.
H.D. Vest Investment Securities, Inc.
Huntleigh Securities Corp.
Independent Financial Group, LLC
Infinex Investments Inc.
Investment Professionals, Inc.
Janney Montgomery Scott LLC
Kestra Investment Services, LLC
Key Investment Services LLC
Ladenburg Thalmann Advisor Network, LLC
Lincoln Financial Advisors Corp.
Lincoln Financial Securities Corp.
Lincoln Investment Planning
Lion Street Financial
LPL Network
Lucia Securities, LLC
MML Investors Services, LLC
Morgan Stanley Smith Barney
Mutual of Omaha Investment Services, Inc.
Park Avenue Securities, LLC
PlanMember Securities Corp.
PNC Investments
Primerica Financial Services, Inc.
Prospera Financial Services
Questar Capital Corporation
Raymond James
RBC Capital Markets Corporation
Robert W Baird & Company
Santander Securities Corp.
SIGMA Financial Corporation
Signator Investors, Inc.
The Advisor Group (AIG)
U.S. Bank Center
UBS Financial Services, Inc.
Valmark Securities, Inc.
Voya Financial Advisors, Inc.
Wells Fargo
LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a policy owner's interest in Separate Account FP, nor would any of these
proceedings be likely to have a material adverse effect on Separate Account FP,
our ability to meet our obligations under the policies, or the distribution of
the policies.
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MORE INFORMATION ABOUT OTHER MATTERS
13. Financial statements of Separate Account FP and AXA Equitable
The financial statements of Separate Account FP, as well as the consolidated
financial statements of AXA Equitable, are in the Statement of Additional
Information ("SAI").
The financial statements of AXA Equitable have relevance for the policies only
to the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the policies. You may request an SAI by writing to our
Administrative Office or by calling 1-800-777-6510 (for U.S. residents) or
1-704-341-7000 (outside of the U.S.) and requesting to speak with a customer
service representative.
59
FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE
14. Personalized illustrations
ILLUSTRATIONS OF POLICY BENEFITS
PERSONALIZED ILLUSTRATIONS. Illustrations are intended to show how different
fees, charges and rates of return can affect the values available under a
policy. Illustrations can be based upon some of the characteristics of the
insured person under your policy as well as some other policy feature choices
you make such as the face amount, death benefit option, premium payment amounts
and assumed rates of return (within limits). This type of illustration is
called a PERSONALIZED ILLUSTRATION. NO ILLUSTRATION WILL EVER SHOW YOU THE
ACTUAL VALUES AVAILABLE UNDER YOUR POLICY AT ANY GIVEN POINT IN TIME. This is
because many factors affect these values including: (i) the insured person's
characteristics; (ii) policy features you choose; (iii) actual premium payments
you make; (iv) loans or withdrawals you make; and (v) actual rates of return
(including the actual fees and expenses) of the underlying portfolios in which
your cash value is invested. Each personalized illustration is accompanied by
an explanation of the assumptions on which that illustration is based. Because,
as discussed below, these assumptions may differ considerably, you should
carefully review all of the disclosure that accompanies each illustration.
DIFFERENT KINDS OF ILLUSTRATIONS. Personalized illustrations can reflect the
investment management fees and expenses incurred in 2018 (or expected to be
incurred in 2019, if such amount is expected to be higher) of the available
underlying portfolios in different ways. An ARITHMETIC ILLUSTRATION uses the
straight average of all of the available underlying portfolios' investment
management fees and expenses. A WEIGHTED ILLUSTRATION computes the average of
investment management fees and expenses based upon the aggregate assets in the
Portfolios at the end of 2018. You may request a weighted illustration that
computes the average of investment management fees and expenses of all
portfolios. If you request, a weighted illustration can also illustrate an
assumed percentage allocation of policy account values among the available
underlying portfolios. A FUND SPECIFIC ILLUSTRATION uses only the investment
management fees and expenses of a specific underlying portfolio. When reviewing
a weighted or fund specific illustration you should keep in mind that the
values shown may be higher than the values shown in other illustrations because
the fees and expenses that are assumed may be lower than those assumed in other
illustrations. You may also request a personalized illustration of the
guaranteed interest option.
THE EFFECT OF THE EXPENSE LIMITATION ARRANGEMENTS. Personalized illustrations
reflect the expense limitation arrangements that are in effect with respect to
certain of the Portfolios. If these fees and expenses were not reduced to
reflect the expense limitation arrangements, the values in the personalized
illustrations would be lower.
60
PERSONALIZED ILLUSTRATIONS
Requesting more information
The Statement of Additional Information ("SAI"), dated May 1, 2019, is
incorporated into this prospectus by reference and is available upon request,
free of charge, by calling our toll free number at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.) and requesting to speak with
a customer service representative. You may also request one by writing to our
operations center at P.O. Box 1047, Charlotte, NC 28201-1047. The SAI includes
additional information about the registrant. You can make inquiries about your
policy and request personalized illustrations by calling our toll free number
at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.),
or asking your financial professional.
You may visit the SEC's web site at www.sec.gov to view the SAI and other
information (including other parts of a registration statement) that relates to
the Separate Account and the policies. You can also review and copy information
about the Separate Account, including the SAI, at the SEC's Public Reference
Room in Washington, D.C. or by electronic request at publicinfo@sec.gov or by
writing the SEC's Public Reference Section, at 100 F Street, N.E., Washington,
D.C. 20549. You may have to pay a duplicating fee. To find out more about the
Public Reference Room, call the SEC at 1-202-551-8090.
SEC File Number: 811-04335
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
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#642100
Incentive Life(R) '06
An individual flexible premium variable life insurance policy issued by
AXA Equitable Life Insurance Company with variable investment STATEMENT OF ADDITIONAL INFORMATION DATED
options offered under AXA Equitable's Separate Account FP. MAY 1, 2019
-------------------------------------------------------------------------------------------------------------------
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This Statement of Additional Information ("SAI") is not a prospectus. It should
be read in conjunction with the related Incentive Life(R) '06 prospectus, dated
May 1, 2019. The prospectus provides detailed information concerning the policy
and the variable investment options, as well as the guaranteed interest option,
that fund the policy. Each variable investment option is a subaccount of AXA
Equitable's Separate Account FP. Separate Account FP's predecessor was
established on April 19, 1985 by our then wholly owned subsidiary, Equitable
Variable Life Insurance Company. We established our Separate Account FP under
New York Law on September 21, 1995. When Equitable Variable Life Insurance
Company merged into AXA Equitable, as of January 1, 1997, our Separate Account
FP succeeded to all the assets, liabilities and operations of its predecessor.
The guaranteed interest option is part of AXA Equitable's general account.
Definitions of special terms used in the SAI are found in the prospectuses.
A copy of the prospectus is available free of charge by writing the
Administrative Office (P.O. Box 1047, Charlotte, North Carolina 28201-1047), by
calling 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the
U.S.) or by contacting your financial professional.
TABLE OF CONTENTS
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
|
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
|
Copyright 2019. AXA Equitable Life Insurance Company, New York, New York 10104.
All rights reserved. Incentive Life(R) '06 is a registered service mark of AXA
Equitable Life Insurance Company.
#642100
WHO IS AXA EQUITABLE?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
WAYS WE PAY POLICY PROCEEDS
The payee for death benefit or other policy proceeds (e.g., upon surrenders)
may name a successor to receive any amounts that we still owe following the
payee's death. Otherwise, we will pay any such amounts to the payee's estate.
We must approve any payment arrangements that involve a payee who is not a
natural person (for example, a corporation) or a payee who is a fiduciary.
Also, the details of all payment arrangements will be subject to our rules at
the time the arrangements are selected and take effect.
DISTRIBUTION OF THE POLICIES
AXA Advisors distributes these policies pursuant to a selling agreement, dated
as of May 1, 1994, as amended, between AXA Advisors and AXA Equitable. For each
of the years 2018, 2017 and 2016, AXA Advisors was paid an administrative
services fee of $0, $0, and $0, respectively. AXA Equitable paid AXA Advisors
as the distributors of certain policies, including these policies, and as the
principal underwriter of several AXA Equitable separate accounts, including
Separate Account FP, $525,064,725 in 2018, $521,468,953 in 2017 and
$542,160,541 in 2016. Of these amounts, for each of these three years, AXA
Advisors retained $242,921,348, $267,653,575 and $281,641,950, respectively.
Under a distribution agreement between AXA Distributors and AXA Equitable and
certain of AXA Equitable's separate accounts, including Separate Account FP,
AXA Equitable paid AXA Distributors, (or EDI, as applicable) as the distributor
of certain policies, including these policies, and as the principal underwriter
of several AXA Equitable separate accounts, including Separate Account FP,
$466,293,494 in 2018, $480,771,028 in 2017 and $507,645,857 in 2016. Of these
amounts, for each of these three years, AXA Distributors (or EDI, as
applicable) retained $0, $0 and $7,262,699, respectively.
UNDERWRITING A POLICY
The underwriting of a policy determines: (1) whether the policy application
will be approved or disapproved; and (2) into what premium class the insured
should be placed. Risk factors that are considered for these determinations
are: (i) the insured's age; (ii) whether the insured uses tobacco or not; and
(iii) the admitted medical history of the insured. Many other factors make up
the overall evaluation of an individual's assessment for insurance, but all of
these items are determined through the questions asked during the application
process.
We base guaranteed cost of insurance rates under the policy on the 1980
Commissioner's Standard Ordinary Mortality Tables.
INSURANCE REGULATION THAT APPLIES TO AXA EQUITABLE
We are regulated and supervised by the New York State Department of Financial
Services. In addition, we are subject to the insurance laws and regulations in
every state where we sell policies. We submit annual reports on our operations
and finances to insurance officials in all of these states. The officials are
responsible for reviewing our reports to see that we are financially sound.
Such regulation, however, does not guarantee or provide absolute assurance of
our soundness.
CUSTODIAN
AXA Equitable is the custodian for shares of the Trusts owned by Separate
Account FP. AXA Equitable's principal offices are located at 1290 Avenue of the
Americas, New York, NY 10104.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements of the Separate Account at December 31, 2018 and for
each of the two years in the period ended December 31, 2018, and the
consolidated financial statements and financial statement schedules of AXA
Equitable at December 31, 2018 and 2017 and for each of the three years in the
period ended December 31, 2018 included in this SAI have been so included in
reliance on the reports of PricewaterhouseCoopers LLP, an independent
registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
PricewaterhouseCoopers LLP provides independent audit services and certain
other non-audit services to AXA Equitable as permitted by the applicable SEC
independence rules, and as disclosed in AXA Equitable's Form 10-K.
PricewaterhouseCoopers LLP's address is 300 Madison Avenue, New York, New York
10017.
FINANCIAL STATEMENTS
The consolidated financial statements of AXA Equitable included herein should
be considered only as bearing upon the ability of AXA Equitable to meet its
obligations under the policies.
2
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm............... FSA-2
Financial Statements:
Statements of Assets and Liabilities, December 31, 2018............ FSA-4
Statements of Operations for the Year or Period Ended December 31,
2018............................................................. FSA-40
Statements of Changes in Net Assets for the Years or Periods Ended
December 31, 2018 and 2017....................................... FSA-59
Notes to Financial Statements...................................... FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
Report of Independent Registered Public Accounting Firm............... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 2018 and 2017....... F-2
Consolidated Statements of Income (Loss), for the Years Ended
December 31, 2018, 2017 and 2016................................. F-4
Consolidated Statements of Comprehensive Income (Loss), for the
Years Ended December 31, 2018, 2017 and 2016..................... F-5
Consolidated Statements of Equity, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-6
Consolidated Statements of Cash Flows, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-7
Notes to Consolidated Financial Statements......................... F-10
Audited Consolidated Financial Statement Schedules................. F-100
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FSA-1 #673845
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of AXA Equitable Life Insurance Company
and the Contractowners of Separate Account FP of AXA Equitable Life Insurance
Company
OPINIONS ON THE FINANCIAL STATEMENTS
We have audited the accompanying statements of assets and liabilities of each
of the subaccounts of Separate Account FP of AXA Equitable Life Insurance
Company indicated in the table below as of December 31, 2018, and the related
statements of operations and of changes in net assets for each of the periods
indicated in the table below, including the related notes (collectively
referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of
each of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company as of December 31, 2018, and the results of each of their operations
and the changes in each of their net assets for the periods indicated in the
table below, in conformity with accounting principles generally accepted in the
United States of America.
1290 VT CONVERTIBLE SECURITIES/(1)/ EQ/BLACKROCK BASIC VALUE EQUITY/(1)/
1290 VT DOUBLELINE DYNAMIC EQ/CAPITAL GUARDIAN RESEARCH/(1)/
ALLOCATION/(1)/
1290 VT DOUBLELINE OPPORTUNISTIC EQ/COMMON STOCK INDEX/(1)/
BOND/(3)/
1290 VT EQUITY INCOME/(1)/ EQ/CORE BOND INDEX/(1)/
1290 VT GAMCO MERGERS & EQ/EQUITY 500 INDEX/(1)/
ACQUISITIONS/(1)/
1290 VT GAMCO SMALL COMPANY VALUE/(1)/ EQ/FIDELITY INSTITUTIONAL AM/SM/
LARGE CAP/(2)/
1290 VT SMARTBETA EQUITY/(1)/ EQ/FRANKLIN RISING DIVIDENDS/(2)/
1290 VT SOCIALLY RESPONSIBLE/(1)/ EQ/FRANKLIN STRATEGIC INCOME/(2)/
ALL ASSET GROWTH-ALT 20/(1)/ EQ/GLOBAL BOND PLUS/(1)/
AMERICAN FUNDS INSURANCE SERIES(R) EQ/GOLDMAN SACHS MID CAP VALUE/(2)/
GLOBAL SMALL
CAPITALIZATION FUND/SM(1)/ EQ/INTERMEDIATE GOVERNMENT BOND/(1)/
AMERICAN FUNDS INSURANCE SERIES(R)
NEW WORLD FUND(R)/(1)/ EQ/INTERNATIONAL EQUITY INDEX/(1)/
AXA 400 MANAGED VOLATILITY/(1)/ EQ/INVESCO COMSTOCK/(1)/
AXA 500 MANAGED VOLATILITY/(1)/ EQ/INVESCO GLOBAL REAL ESTATE/(2)/
AXA 2000 MANAGED VOLATILITY/(1)/ EQ/INVESCO INTERNATIONAL GROWTH/(2)/
AXA AGGRESSIVE ALLOCATION/(1)/ EQ/IVY ENERGY/(2)/
AXA BALANCED STRATEGY/(1)/ EQ/IVY MID CAP GROWTH/(2)/
AXA CONSERVATIVE ALLOCATION/(1)/ EQ/IVY SCIENCE AND TECHNOLOGY/(2)/
AXA CONSERVATIVE GROWTH STRATEGY/(1)/ EQ/JPMORGAN VALUE OPPORTUNITIES/(1)/
AXA CONSERVATIVE STRATEGY/(1)/ EQ/LARGE CAP GROWTH INDEX/(1)/
AXA CONSERVATIVE-PLUS ALLOCATION/(1)/ EQ/LARGE CAP VALUE INDEX/(1)/
AXA GLOBAL EQUITY MANAGED
VOLATILITY/(1)/ EQ/LAZARD EMERGING MARKETS EQUITY/(2)/
AXA GROWTH STRATEGY/(1)/ EQ/MFS INTERNATIONAL GROWTH/(1)/
AXA INTERNATIONAL CORE MANAGED
VOLATILITY/(1)/ EQ/MFS INTERNATIONAL VALUE/(2)/
AXA INTERNATIONAL MANAGED
VOLATILITY/(1)/ EQ/MFS UTILITIES SERIES/(2)/
AXA INTERNATIONAL VALUE MANAGED
VOLATILITY/(1)/ EQ/MID CAP INDEX/(1)/
AXA LARGE CAP CORE MANAGED
VOLATILITY/(1)/ EQ/MONEY MARKET/(1)/
AXA LARGE CAP GROWTH MANAGED
VOLATILITY/(1)/ EQ/PIMCO REAL RETURN/(2)/
AXA LARGE CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO TOTAL RETURN/(2)/
AXA MID CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO ULTRA SHORT BOND/(1)/
AXA MODERATE ALLOCATION/(1)/ EQ/QUALITY BOND PLUS/(1)/
AXA MODERATE GROWTH STRATEGY/(1)/ EQ/SMALL COMPANY INDEX/(1)/
AXA MODERATE-PLUS ALLOCATION/(1)/ EQ/T. ROWE PRICE GROWTH STOCK/(1)/
AXA/AB SMALL CAP GROWTH/(1)/ EQ/T. ROWE PRICE HEALTH SCIENCES/(2)/
AXA/CLEARBRIDGE LARGE CAP GROWTH/(1)/ EQ/UBS GROWTH & INCOME/(1)/
AXA/JANUS ENTERPRISE/(1)/ FIDELITY(R) VIP ASSET MANAGER: GROWTH
PORTFOLIO/(1)/
AXA/LOOMIS SAYLES GROWTH/(1)/ FIDELITY(R) VIP EQUITY-INCOME
PORTFOLIO/(1)/
BLACKROCK GLOBAL ALLOCATION V.I. FIDELITY(R) VIP GOVERNMENT MONEY
FUND/(1)/ MARKET PORTFOLIO/(1)/
CHARTER/SM/ MULTI-SECTOR BOND/(1)/ FIDELITY(R) VIP GROWTH & INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP GROWTH/(1)/ FIDELITY(R) VIP HIGH INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP VALUE/(1)/ FIDELITY(R) VIP INVESTMENT GRADE BOND
PORTFOLIO/(1)/
CLEARBRIDGE VARIABLE MID CAP FIDELITY(R) VIP MID CAP PORTFOLIO/(1)/
PORTFOLIO/(1)/
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EQ/AMERICAN CENTURY MID CAP VALUE/(2)/ FIDELITY(R) VIP VALUE PORTFOLIO/(1)/
FSA-2
FIDELITY(R) VIP VALUE STRATEGIES MULTIMANAGER TECHNOLOGY/(1)/
PORTFOLIO/(1)/
FRANKLIN MUTUAL SHARES VIP FUND/(1)/ NATURAL RESOURCES PORTFOLIO/(1)/
FRANKLIN SMALL CAP VALUE VIP FUND/(1)/ PIMCO COMMODITYREALRETURN(R) STRATEGY
PORTFOLIO/(1)/
INVESCO V.I. DIVERSIFIED DIVIDEND T. ROWE PRICE EQUITY INCOME
FUND/(1)/ PORTFOLIO/(1)/
INVESCO V.I. MID CAP CORE EQUITY TARGET 2015 ALLOCATION/(1)/
FUND/(1)/
INVESCO V.I. SMALL CAP EQUITY TARGET 2025 ALLOCATION/(1)/
FUND/(1)/
IVY VIP GLOBAL EQUITY INCOME/(1)/ TARGET 2035 ALLOCATION/(1)/
IVY VIP HIGH INCOME/(1)/ TARGET 2045 ALLOCATION/(1)/
IVY VIP SMALL CAP GROWTH/(1)/ TARGET 2055 ALLOCATION/(1)/
TEMPLETON DEVELOPING MARKETS VIP
MFS(R) INVESTORS TRUST SERIES/(1)/ FUND/(1)/
MFS(R) MASSACHUSETTS INVESTORS GROWTH TEMPLETON GLOBAL BOND VIP FUND/(1)/
STOCK PORTFOLIO/(1)/
MULTIMANAGER AGGRESSIVE EQUITY/(1)/ TEMPLETON GROWTH VIP FUND/(1)/
VANECK VIP GLOBAL HARD ASSETS
MULTIMANAGER CORE BOND/(1)/ FUND/(1)/
VANGUARD VARIABLE INSURANCE FUND --
MULTIMANAGER MID CAP GROWTH/(1)/ EQUITY INDEX PORTFOLIO/(1)/
MULTIMANAGER MID CAP VALUE/(1)/
|
(1)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for each of the two years
in the period ended December 31,
2018.
(2)Statements of operations and of
changes in net assets for the
period October 22, 2018
(commencement of operations)
through December 31, 2018.
(3)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for the year ended
December 31, 2018 and the period
May 19, 2017 (commencement of
operations) through December 31,
2017.
BASIS FOR OPINIONS
These financial statements are the responsibility of AXA Equitable Life
Insurance Company management. Our responsibility is to express an opinion on
the financial statements of each of the subaccounts in Separate Account FP of
AXA Equitable Life Insurance Company based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to each
of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of investments owned as of December 31, 2018 by
correspondence with the transfer agents of the investee mutual funds or the
investee mutual funds directly. We believe that our audits provide a reasonable
basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
April 15, 2019
|
We have served as the auditor of one or more of the subaccounts in Separate
Account FP of AXA Equitable Life Insurance Company since 1993.
FSA-3
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
1290 VT 1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,204,221 $10,754,358 $606,762 $19,286,327 $15,090,075
Receivable for shares of the Portfolios sold................ 19 28 4 -- 61,315
Receivable for policy-related transactions.................. -- -- -- 10,247 --
---------- ----------- -------- ----------- -----------
Total assets............................................. 1,204,240 10,754,386 606,766 19,296,574 15,151,390
---------- ----------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 10,261 --
Payable for policy-related transactions..................... 16 19 2 -- 61,317
---------- ----------- -------- ----------- -----------
Total liabilities........................................ 16 19 2 10,261 61,317
---------- ----------- -------- ----------- -----------
NET ASSETS.................................................. $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,204,224 $10,754,367 $606,764 $19,285,513 $15,089,316
Retained by AXA Equitable in Separate Account FP............ -- -- -- 800 757
---------- ----------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $1,355,418 $11,256,372 $623,632 $28,317,391 $16,528,990
|
1290 VT
GAMCO SMALL
COMPANY VALUE*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $162,891,475
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 45,919
------------
Total assets............................................. 162,937,394
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 45,324
Payable for policy-related transactions..................... --
------------
Total liabilities........................................ 45,324
------------
NET ASSETS.................................................. $162,892,070
============
NET ASSETS:
Accumulation unit values.................................... $162,891,215
Retained by AXA Equitable in Separate Account FP............ 855
------------
TOTAL NET ASSETS............................................ $162,892,070
============
Investments in shares of the Portfolios, at cost............ $169,324,722
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-4
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R) GLOBAL
1290 VT 1290 VT SMALL
SMARTBETA SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
---------- ------------ -------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,272,599 $2,801,064 $29,859,033 $8,267,438
Receivable for shares of the Portfolios sold................ 11 -- 2,560 --
Receivable for policy-related transactions.................. -- 11,996 4,376 277
---------- ---------- ----------- ----------
Total assets............................................. 1,272,610 2,813,060 29,865,969 8,267,715
---------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 11,996 -- 278
Payable for policy-related transactions..................... 8 -- -- --
---------- ---------- ----------- ----------
Total liabilities........................................ 8 11,996 -- 278
---------- ---------- ----------- ----------
NET ASSETS.................................................. $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,272,602 $2,636,981 $29,858,581 $8,267,201
Retained by AXA Equitable in Separate Account FP............ -- 164,083 7,388 236
---------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $1,399,627 $2,961,203 $31,570,121 $8,926,526
|
AMERICAN
FUNDS
INSURANCE AXA 400
SERIES(R) NEW MANAGED
WORLD FUND(R) VOLATILITY*
------------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $19,112,159 $4,405,240
Receivable for shares of the Portfolios sold................ -- --
Receivable for policy-related transactions.................. 44,611 1,038
----------- ----------
Total assets............................................. 19,156,770 4,406,278
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 43,662 997
Payable for policy-related transactions..................... -- --
----------- ----------
Total liabilities........................................ 43,662 997
----------- ----------
NET ASSETS.................................................. $19,113,108 $4,405,281
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $19,113,108 $4,405,281
Retained by AXA Equitable in Separate Account FP............ -- --
----------- ----------
TOTAL NET ASSETS............................................ $19,113,108 $4,405,281
=========== ==========
Investments in shares of the Portfolios, at cost............ $20,591,683 $5,203,143
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-5
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA 500 AXA 2000 AXA AXA AXA
MANAGED MANAGED AGGRESSIVE BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- ------------ ----------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $10,224,920 $4,136,561 $135,970,073 $38,375,203 $27,196,469
Receivable for shares of the Portfolios sold................ -- -- -- -- 62,943
Receivable for policy-related transactions.................. 2,188 1,346 7,096 2,629 --
----------- ---------- ------------ ----------- -----------
Total assets............................................. 10,227,108 4,137,907 135,977,169 38,377,832 27,259,412
----------- ---------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 2,131 1,321 7,096 2,629 --
Payable for policy-related transactions..................... -- -- -- -- 62,943
----------- ---------- ------------ ----------- -----------
Total liabilities........................................ 2,131 1,321 7,096 2,629 62,943
----------- ---------- ------------ ----------- -----------
NET ASSETS.................................................. $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $10,224,977 $4,136,586 $135,912,188 $38,340,399 $27,193,590
Retained by AXA Equitable in Separate Account FP............ -- -- 57.885 34,804 2,879
----------- ---------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $10,170,394 $4,735,803 $145,357,750 $38,565,642 $29,051,705
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $7,082,064
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 23
----------
Total assets............................................. 7,082,087
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 23
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 23
----------
NET ASSETS.................................................. $7,082,064
==========
NET ASSETS:
Accumulation unit values.................................... $7,082,059
Retained by AXA Equitable in Separate Account FP............ 5
----------
TOTAL NET ASSETS............................................ $7,082,064
==========
Investments in shares of the Portfolios, at cost............ $7,113,610
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-6
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA AXA
AXA CONSERVATIVE- AXA GLOBAL AXA INTERNATIONAL
CONSERVATIVE PLUS EQUITY MANAGED GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- -------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,968,614 $29,777,949 $120,128,671 $58,504,234 $51,292,032
Receivable for shares of the Portfolios sold................ 412 -- -- -- 36,524
Receivable for policy-related transactions.................. -- 4,051 6,799 50,086 --
---------- ----------- ------------ ----------- -----------
Total assets............................................. 2,969,026 29,782,000 120,135,470 58,554,320 51,328,556
---------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 39,707 6,810 50,086 --
Payable for policy-related transactions..................... 412 -- -- -- 36,649
---------- ----------- ------------ ----------- -----------
Total liabilities........................................ 412 39,707 6,810 50,086 36,649
---------- ----------- ------------ ----------- -----------
NET ASSETS.................................................. $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,968,614 $29,662,597 $120,081,031 $58,504,221 $51,221,536
Retained by AXA Equitable in Separate Account FP............ -- 79,696 47,629 13 70,371
---------- ----------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $3,058,866 $32,222,508 $104,477,256 $56,283,009 $51,692,566
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,515,456
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 164
----------
Total assets............................................. 3,515,620
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 159
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 159
----------
NET ASSETS.................................................. $3,515,461
==========
NET ASSETS:
Accumulation unit values.................................... $3,515,461
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $3,515,461
==========
Investments in shares of the Portfolios, at cost............ $3,783,719
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-7
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA
INTERNATIONAL AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP
VALUE MANAGED CORE MANAGED GROWTH MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- -------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $66,956,565 $27,761,351 $243,752,948 $343,916,122
Receivable for shares of the Portfolios sold................ 194,166 8,604 106,987 --
Receivable for policy-related transactions.................. -- -- -- --
----------- ----------- ------------ ------------
Total assets............................................. 67,150,731 27,769,955 243,859,935 343,916,122
----------- ----------- ------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,421
Payable for policy-related transactions..................... 194,254 8,789 107,354 6,125
----------- ----------- ------------ ------------
Total liabilities........................................ 194,254 8,789 107,354 7,546
----------- ----------- ------------ ------------
NET ASSETS.................................................. $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
NET ASSETS:
Accumulation unit values.................................... $66,934,190 $27,717,126 $243,596,271 $343,556,995
Accumulation nonunitized.................................... -- -- -- 218,684
Retained by AXA Equitable in Separate Account FP............ 22,287 44,040 156,310 132,897
----------- ----------- ------------ ------------
TOTAL NET ASSETS............................................ $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
Investments in shares of the Portfolios, at cost............ $69,299,707 $25,191,142 $178,554,968 $275,592,613
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $171,153,729 $803,396,725
Receivable for shares of the Portfolios sold................ -- 479,394
Receivable for policy-related transactions.................. 4,982 --
------------ ------------
Total assets............................................. 171,158,711 803,876,119
------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 5,790 --
Payable for policy-related transactions..................... -- 1,449,160
------------ ------------
Total liabilities........................................ 5,790 1,449,160
------------ ------------
NET ASSETS.................................................. $171,152,921 $802,426,959
============ ============
NET ASSETS:
Accumulation unit values.................................... $171,111,512 $799,703,084
Accumulation nonunitized.................................... -- 2,568,229
Retained by AXA Equitable in Separate Account FP............ 41,409 155,646
------------ ------------
TOTAL NET ASSETS............................................ $171,152,921 $802,426,959
============ ============
Investments in shares of the Portfolios, at cost............ $137,142,391 $856,446,772
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-8
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $106,743,471 $392,177,617 $186,463,102 $76,684,466 $41,614,072
Receivable for shares of the Portfolios sold................ -- -- 140,609 285,796 64,769
Receivable for policy-related transactions.................. 4,501 301,098 -- -- --
------------ ------------ ------------ ----------- -----------
Total assets............................................. 106,747,972 392,478,715 186,603,711 76,970,262 41,678,841
------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 4,489 300,966 -- -- --
Payable for policy-related transactions..................... -- -- 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
Total liabilities........................................ 4,489 300,966 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
NET ASSETS.................................................. $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $106,743,483 $392,148,528 $186,423,005 $76,622,908 $41,613,198
Retained by AXA Equitable in Separate Account FP............ -- 29,221 40,036 61,543 857
------------ ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $103,054,942 $421,436,546 $209,272,493 $82,891,129 $45,005,881
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $39,626,380
Receivable for shares of the Portfolios sold................ 174,064
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 39,800,444
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 174,085
-----------
Total liabilities........................................ 174,085
-----------
NET ASSETS.................................................. $39,626,359
===========
NET ASSETS:
Accumulation unit values.................................... $39,624,999
Retained by AXA Equitable in Separate Account FP............ 1,360
-----------
TOTAL NET ASSETS............................................ $39,626,359
===========
Investments in shares of the Portfolios, at cost............ $38,585,633
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-9
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM/ CHARTER/SM/ CHARTER/SM/ CLEARBRIDGE
ALLOCATION V.I. MULTI-SECTOR SMALL CAP SMALL CAP VARIABLE MID
FUND BOND* GROWTH* VALUE* CAP PORTFOLIO
--------------- ------------ ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,436,712 $68,050,855 $12,513,905 $24,463,483 $617,285
Receivable for shares of the Portfolios sold................ 341,752 34,931 3,276 -- --
Receivable for policy-related transactions.................. -- -- -- 6,943 7,424
---------- ----------- ----------- ----------- --------
Total assets............................................. 5,778,464 68,085,786 12,517,181 24,470,426 624,709
---------- ----------- ----------- ----------- --------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 7,588 6,892
Payable for policy-related transactions..................... 341,752 76,375 3,275 -- --
---------- ----------- ----------- ----------- --------
Total liabilities........................................ 341,752 76,375 3,275 7,588 6,892
---------- ----------- ----------- ----------- --------
NET ASSETS.................................................. $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
NET ASSETS:
Accumulation unit values.................................... $5,433,945 $67,500,179 $12,512,038 $24,397,651 $617,817
Accumulation nonunitized.................................... -- 456,132 -- -- --
Retained by AXA Equitable in Separate Account FP............ 2,767 53,100 1,868 65,187 --
---------- ----------- ----------- ----------- --------
TOTAL NET ASSETS............................................ $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
Investments in shares of the Portfolios, at cost............ $5,914,474 $77,505,553 $12,661,900 $20,266,042 $715,294
|
EQ/AMERICAN
CENTURY MID
CAP VALUE*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $48,114,990
Receivable for shares of the Portfolios sold................ 186,640
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 48,301,630
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 189,424
-----------
Total liabilities........................................ 189,424
-----------
NET ASSETS.................................................. $48,112,206
===========
NET ASSETS:
Accumulation unit values.................................... $48,110,561
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 1,645
-----------
TOTAL NET ASSETS............................................ $48,112,206
===========
Investments in shares of the Portfolios, at cost............ $53,974,547
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-10
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND EQ/EQUITY 500
EQUITY* RESEARCH* STOCK INDEX* INDEX* INDEX*
------------ ------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $183,322,625 $112,258,595 $1,485,794,702 $49,589,275 $802,858,916
Receivable for shares of the Portfolios sold................ 183,839 97,290 11,799 60,435 2,790,968
------------ ------------ -------------- ----------- ------------
Total assets............................................. 183,506,464 112,355,885 1,485,806,501 49,649,710 805,649,884
------------ ------------ -------------- ----------- ------------
LIABILITIES:
Payable for policy-related transactions..................... 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
Total liabilities........................................ 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
NET ASSETS.................................................. $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
NET ASSETS:
Accumulation unit values.................................... $183,243,930 $112,084,507 $1,481,506,448 $49,571,977 $802,250,312
Accumulation nonunitized.................................... -- -- 3,631,059 -- 334,777
Retained by AXA Equitable in Separate Account FP............ 77,987 173,753 484,768 17,405 33,724
------------ ------------ -------------- ----------- ------------
TOTAL NET ASSETS............................................ $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
Investments in shares of the Portfolios, at cost............ $156,473,871 $ 89,611,072 $1,047,182,530 $50,957,446 $617,308,124
|
EQ/FIDELITY
INSTITUTIONAL
AM/SM/ LARGE CAP*
---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 93,729,045
Receivable for shares of the Portfolios sold................ 8,167
------------
Total assets............................................. 93,737,212
------------
LIABILITIES:
Payable for policy-related transactions..................... 8,877
------------
Total liabilities........................................ 8,877
------------
NET ASSETS.................................................. $ 93,728,335
============
NET ASSETS:
Accumulation unit values.................................... $ 93,722,862
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 5,473
------------
TOTAL NET ASSETS............................................ $ 93,728,335
============
Investments in shares of the Portfolios, at cost............ $105,758,670
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-11
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
EQ/FRANKLIN STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
RISING DIVIDENDS* INCOME* BOND PLUS* VALUE* BOND*
----------------- ----------- ----------- ------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $52,115,217 $33,501,099 $16,637,917 $8,496,816 $48,231,562
Receivable for shares of the Portfolios sold................ 58,093 2,051 10,847 -- 51,127
Receivable for policy-related transactions.................. -- -- -- 1,138 --
----------- ----------- ----------- ---------- -----------
Total assets............................................. 52,173,310 33,503,150 16,648,764 8,497,954 48,282,689
----------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,894 --
Payable for policy-related transactions..................... 64,065 4,778 10,846 -- 54,981
----------- ----------- ----------- ---------- -----------
Total liabilities........................................ 64,065 4,778 10,846 1,894 54,981
----------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $52,109,245 $33,498,372 $16,636,965 $8,495,754 $48,114,681
Accumulation nonunitized.................................... -- -- -- -- 95,850
Retained by AXA Equitable in Separate Account FP............ -- -- 953 306 17,177
----------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $56,311,179 $34,155,258 $17,492,519 $9,346,271 $48,626,417
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $272,536,309
Receivable for shares of the Portfolios sold................ 3,135
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 272,539,444
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 111,848
------------
Total liabilities........................................ 111,848
------------
NET ASSETS.................................................. $272,427,596
============
NET ASSETS:
Accumulation unit values.................................... $272,107,156
Accumulation nonunitized.................................... 252,495
Retained by AXA Equitable in Separate Account FP............ 67,945
------------
TOTAL NET ASSETS............................................ $272,427,596
============
Investments in shares of the Portfolios, at cost............ $303,604,762
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-12
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL EQ/ EQ/IVY MID CAP
COMSTOCK* ESTATE* GROWTH* IVY ENERGY* GROWTH*
----------- ----------- ------------- ----------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $25,600,527 $36,373,951 $32,106,216 $10,240,782 $33,209,780
Receivable for shares of the Portfolios sold................ 6,756 -- 41,550 -- 125,792
Receivable for policy-related transactions.................. -- 2,914 -- 10,220 --
----------- ----------- ----------- ----------- -----------
Total assets............................................. 25,607,283 36,376,865 32,147,766 10,251,002 33,335,572
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 10,767 -- 11,900 --
Payable for policy-related transactions..................... 6,756 -- 32,475 -- 130,843
----------- ----------- ----------- ----------- -----------
Total liabilities........................................ 6,756 10,767 32,475 11,900 130,843
----------- ----------- ----------- ----------- -----------
NET ASSETS.................................................. $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $25,593,350 $36,366,098 $32,099,746 $10,239,102 $33,195,999
Retained by AXA Equitable in Separate Account FP............ 7,177 -- 15,545 -- 8,730
----------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS............................................ $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $25,595,432 $37,062,268 $33,851,043 $14,738,486 $36,402,660
|
EQ/IVY SCIENCE
AND
TECHNOLOGY*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $32,657,031
Receivable for shares of the Portfolios sold................ 179,388
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 32,836,419
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 183,662
-----------
Total liabilities........................................ 183,662
-----------
NET ASSETS.................................................. $32,652,757
===========
NET ASSETS:
Accumulation unit values.................................... $32,652,757
Retained by AXA Equitable in Separate Account FP............ --
-----------
TOTAL NET ASSETS............................................ $32,652,757
===========
Investments in shares of the Portfolios, at cost............ $36,542,551
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-13
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EQ/LARGE EMERGING EQ/MFS
VALUE EQ/LARGE CAP CAP VALUE MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* INDEX* EQUITY* GROWTH*
-------------- ------------- ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $43,550,400 $148,283,162 $24,698,977 $52,605,449 $46,696,823
Receivable for shares of the Portfolios sold................ 1,933 182,171 2,067 281,649 --
Receivable for policy-related transactions.................. -- -- -- -- 38,630
----------- ------------ ----------- ----------- -----------
Total assets............................................. 43,552,333 148,465,333 24,701,044 52,887,098 46,735,453
----------- ------------ ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- -- 38,634
Payable for policy-related transactions..................... 2,330 182,473 2,076 272,772 --
----------- ------------ ----------- ----------- -----------
Total liabilities........................................ 2,330 182,473 2,076 272,772 38,634
----------- ------------ ----------- ----------- -----------
NET ASSETS.................................................. $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $43,438,530 $148,201,129 $24,683,127 $52,589,118 $46,696,549
Retained by AXA Equitable in Separate Account FP............ 111,473 81,731 15,841 25,208 270
----------- ------------ ----------- ----------- -----------
TOTAL NET ASSETS............................................ $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $47,970,016 $128,278,230 $26,159,500 $53,319,248 $49,439,048
|
EQ/MFS
INTERNATIONAL
VALUE*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $102,842,684
Receivable for shares of the Portfolios sold................ 254,123
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 103,096,807
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 253,113
------------
Total liabilities........................................ 253,113
------------
NET ASSETS.................................................. $102,843,694
============
NET ASSETS:
Accumulation unit values.................................... $102,836,986
Retained by AXA Equitable in Separate Account FP............ 6,708
------------
TOTAL NET ASSETS............................................ $102,843,694
============
Investments in shares of the Portfolios, at cost............ $107,419,572
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-14
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/MFS
UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL EQ/PIMCO TOTAL
SERIES* INDEX* MARKET* RETURN* RETURN*
---------- ------------ ------------ ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,291,837 $134,225,945 $148,888,985 $24,188,753 $68,230,532
Receivable for shares of the Portfolios sold................ 92,913 -- -- -- 314,118
Receivable for policy-related transactions.................. -- 1,843 -- 209,393 --
---------- ------------ ------------ ----------- -----------
Total assets............................................. 2,384,750 134,227,788 148,888,985 24,398,146 68,544,650
---------- ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 1,889 3,247,144 213,550 --
Payable for policy-related transactions..................... 92,846 -- 1,281,097 -- 316,513
---------- ------------ ------------ ----------- -----------
Total liabilities........................................ 92,846 1,889 4,528,241 213,550 316,513
---------- ------------ ------------ ----------- -----------
NET ASSETS.................................................. $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,291,768 $134,200,303 $143,929,769 $24,169,439 $68,222,803
Accumulation nonunitized.................................... -- -- 421,416 -- --
Retained by AXA Equitable in Separate Account FP............ 136 25,596 9,559 15,157 5,334
---------- ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $2,380,927 $134,601,176 $148,886,123 $24,267,636 $67,820,014
|
EQ/PIMCO ULTRA
SHORT BOND*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $33,385,501
Receivable for shares of the Portfolios sold................ 82,638
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 33,468,139
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 82,639
-----------
Total liabilities........................................ 82,639
-----------
NET ASSETS.................................................. $33,385,500
===========
NET ASSETS:
Accumulation unit values.................................... $33,383,383
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 2,117
-----------
TOTAL NET ASSETS............................................ $33,385,500
===========
Investments in shares of the Portfolios, at cost............ $33,738,915
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-15
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES* & INCOME*
-------------- -------------- ------------ ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $ 41,752,769 $ 89,366,351 $114,532,018 $7,851,801 $11,348,324
Receivable for shares of the Portfolios sold...... 35,720 -- 13,861 196,412 --
Receivable for policy-related transactions........ -- 66,478 -- -- 8,078
-------------- ------------ ------------ ---------- -----------
Total assets................................... 41,788,489 89,432,829 114,545,879 8,048,213 11,356,402
-------------- ------------ ------------ ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... -- 66,492 -- -- 8,078
Payable for policy-related transactions........... 37,190 -- 12,308 195,087 --
-------------- ------------ ------------ ---------- -----------
Total liabilities.............................. 37,190 66,492 12,308 195,087 8,078
-------------- ------------ ------------ ---------- -----------
NET ASSETS........................................ $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
NET ASSETS:
Accumulation unit values.......................... $41,626,950.36 $ 89,337,709 $114,375,678 $7,850,572 $11,348,285
Accumulation nonunitized.......................... 53,419 -- -- -- --
Retained by AXA Equitable in Separate Account FP.. 70,930 28,628 157,893 2,554 39
-------------- ------------ ------------ ---------- -----------
TOTAL NET ASSETS.................................. $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
Investments in shares of the Portfolios, at cost.. $ 43,967,750 $105,793,037 $108,501,498 $8,675,143 $13,609,331
|
FIDELITY(R) VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $1,145,423
Receivable for shares of the Portfolios sold...... --
Receivable for policy-related transactions........ --
----------
Total assets................................... 1,145,423
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... --
Payable for policy-related transactions........... --
----------
Total liabilities.............................. --
----------
NET ASSETS........................................ $1,145,423
==========
NET ASSETS:
Accumulation unit values.......................... $1,144,529
Accumulation nonunitized.......................... --
Retained by AXA Equitable in Separate Account FP.. 894
----------
TOTAL NET ASSETS.................................. $1,145,423
==========
Investments in shares of the Portfolios, at cost.. $1,264,257
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-16
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP FIDELITY(R) VIP FIDELITY(R) VIP
FIDELITY(R) VIP GOVERNMENT GROWTH & HIGH
EQUITY-INCOME MONEY MARKET INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- ---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,610,775 $1,467,363 $8,797,260 $2,637,489
Receivable for shares of the Portfolios sold................ -- -- 6,193 --
Receivable for policy-related transactions.................. 207 -- -- 71,405
---------- ---------- ---------- ----------
Total assets............................................. 1,610,982 1,467,363 8,803,453 2,708,894
---------- ---------- ---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 207 -- -- 71,405
Payable for policy-related transactions..................... -- -- 6,193 --
---------- ---------- ---------- ----------
Total liabilities........................................ 207 -- 6,193 71,405
---------- ---------- ---------- ----------
NET ASSETS.................................................. $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,605,235 $1,467,282 $8,794,912 $2,637,342
Retained by AXA Equitable in Separate Account FP............ 5,540 81 2,348 147
---------- ---------- ---------- ----------
TOTAL NET ASSETS............................................ $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
Investments in shares of the Portfolios, at cost............ $1,733,436 $1,467,363 $9,103,378 $2,869,071
|
FIDELITY(R) VIP
INVESTMENT
GRADE BOND FIDELITY(R) VIP MID
PORTFOLIO CAP PORTFOLIO
--------------- -------------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $36,813,473 $28,429,287
Receivable for shares of the Portfolios sold................ 63,842 --
Receivable for policy-related transactions.................. -- 33,227
----------- -----------
Total assets............................................. 36,877,315 28,462,514
----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 32,998
Payable for policy-related transactions..................... 63,842 --
----------- -----------
Total liabilities........................................ 63,842 32,998
----------- -----------
NET ASSETS.................................................. $36,813,473 $28,429,516
=========== ===========
NET ASSETS:
Accumulation unit values.................................... $36,812,880 $28,415,333
Retained by AXA Equitable in Separate Account FP............ 593 14,183
----------- -----------
TOTAL NET ASSETS............................................ $36,813,473 $28,429,516
=========== ===========
Investments in shares of the Portfolios, at cost............ $37,849,217 $32,666,614
|
The accompanying notes are an integral part of these financial statements.
FSA-17
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP
FIDELITY(R) VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,319,266 $287,654 $8,151,301 $11,105,183
Receivable for shares of the Portfolios sold................ -- -- 192,850 92,493
Receivable for policy-related transactions.................. 400 -- -- --
---------- -------- ---------- -----------
Total assets............................................. 1,319,666 287,654 8,344,151 11,197,676
---------- -------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 400 -- -- --
Payable for policy-related transactions..................... -- -- 192,850 92,493
---------- -------- ---------- -----------
Total liabilities........................................ 400 -- 192,850 92,493
---------- -------- ---------- -----------
NET ASSETS.................................................. $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,303,693 $287,433 $8,151,161 $11,102,217
Retained by AXA Equitable in Separate Account FP............ 15,573 221 140 2,966
---------- -------- ---------- -----------
TOTAL NET ASSETS............................................ $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
Investments in shares of the Portfolios, at cost............ $1,524,778 $359,062 $9,329,692 $13,870,711
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,522,826 $3,493,111
Receivable for shares of the Portfolios sold................ 142,854 17,488
Receivable for policy-related transactions.................. -- --
----------- ----------
Total assets............................................. 13,665,680 3,510,599
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- --
Payable for policy-related transactions..................... 142,854 17,444
----------- ----------
Total liabilities........................................ 142,854 17,444
----------- ----------
NET ASSETS.................................................. $13,522,826 $3,493,155
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $13,522,813 $3,493,155
Retained by AXA Equitable in Separate Account FP............ 13 --
----------- ----------
TOTAL NET ASSETS............................................ $13,522,826 $3,493,155
=========== ==========
Investments in shares of the Portfolios, at cost............ $14,859,007 $4,332,188
|
The accompanying notes are an integral part of these financial statements.
FSA-18
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,092,113 $525,754 $35,496,796 $12,355,465
Receivable for shares of the Portfolios sold................ -- -- -- 20,561
Receivable for policy-related transactions.................. 105,400 -- 86,183 --
---------- -------- ----------- -----------
Total assets............................................. 5,197,513 525,754 35,582,979 12,376,026
---------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 105,402 -- 85,132 --
Payable for policy-related transactions..................... -- -- -- 20,589
---------- -------- ----------- -----------
Total liabilities........................................ 105,402 -- 85,132 20,589
---------- -------- ----------- -----------
NET ASSETS.................................................. $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $5,091,992 $520,791 $35,497,847 $12,355,437
Retained by AXA Equitable in Separate Account FP............ 119 4,963 -- --
---------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $6,314,958 $596,931 $37,929,920 $16,424,645
|
MFS(R)
MASSACHUSETTS
INVESTORS
MFS(R) INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,162,372 $5,987,373
Receivable for shares of the Portfolios sold................ 502 --
Receivable for policy-related transactions.................. -- 8,212
---------- ----------
Total assets............................................. 3,162,874 5,995,585
---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 8,212
Payable for policy-related transactions..................... 502 --
---------- ----------
Total liabilities........................................ 502 8,212
---------- ----------
NET ASSETS.................................................. $3,162,372 $5,987,373
========== ==========
NET ASSETS:
Accumulation unit values.................................... $3,162,361 $5,987,170
Retained by AXA Equitable in Separate Account FP............ 11 203
---------- ----------
TOTAL NET ASSETS............................................ $3,162,372 $5,987,373
========== ==========
Investments in shares of the Portfolios, at cost............ $3,281,447 $6,007,943
|
The accompanying notes are an integral part of these financial statements.
FSA-19
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $429,070,461 $59,926,393 $26,742,202 $33,346,910 $131,090,935
Receivable for shares of the Portfolios sold................ 81,329 161,523 575 -- 4,436
Receivable for policy-related transactions.................. -- -- -- 4,359 --
------------ ----------- ----------- ----------- ------------
Total assets............................................. 429,151,790 60,087,916 26,742,777 33,351,269 131,095,371
------------ ----------- ----------- ----------- ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 4,495 --
Payable for policy-related transactions..................... 235,812 161,501 616 -- 5,159
------------ ----------- ----------- ----------- ------------
Total liabilities........................................ 235,812 161,501 616 4,495 5,159
------------ ----------- ----------- ----------- ------------
NET ASSETS.................................................. $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
NET ASSETS:
Accumulation unit values.................................... $428,093,247 $59,906,285 $26,625,175 $33,132,520 $131,004,803
Accumulation nonunitized.................................... 736,050 -- -- -- --
Retained by AXA Equitable in Separate Account FP............ 86,681 20,130 116,986 214,254 85,409
------------ ----------- ----------- ----------- ------------
TOTAL NET ASSETS............................................ $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
Investments in shares of the Portfolios, at cost............ $238,715,873 $62,934,325 $29,468,737 $27,465,338 $117,485,310
|
NATURAL
RESOURCES
PORTFOLIO
----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,916,069
Receivable for shares of the Portfolios sold................ 50,589
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 1,966,658
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 50,574
----------
Total liabilities........................................ 50,574
----------
NET ASSETS.................................................. $1,916,084
==========
NET ASSETS:
Accumulation unit values.................................... $1,916,084
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $1,916,084
==========
Investments in shares of the Portfolios, at cost............ $2,278,593
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-20
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R) T. ROWE PRICE
STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 9,538,604 $13,050,978 $1,709,901 $ 9,625,883 $4,749,619
Receivable for shares of the Portfolios sold................ -- -- 13,110 32,931 170,855
Receivable for policy-related transactions.................. 8,936 22,095 -- -- --
----------- ----------- ---------- ----------- ----------
Total assets............................................. 9,547,540 13,073,073 1,723,011 9,658,814 4,920,474
----------- ----------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 8,938 22,099 -- -- --
Payable for policy-related transactions..................... -- -- 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
Total liabilities........................................ 8,938 22,099 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
NET ASSETS.................................................. $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $ 9,530,593 $13,050,450 $1,709,869 $ 9,625,893 $4,749,655
Retained by AXA Equitable in Separate Account FP............ 8,009 524 32 -- --
----------- ----------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $13,095,357 $15,784,271 $1,913,745 $10,092,255 $5,065,292
|
TARGET 2045
ALLOCATION*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,830,234
Receivable for shares of the Portfolios sold................ 12,519
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 2,842,753
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 12,518
----------
Total liabilities........................................ 12,518
----------
NET ASSETS.................................................. $2,830,235
==========
NET ASSETS:
Accumulation unit values.................................... $2,828,879
Retained by AXA Equitable in Separate Account FP............ 1,356
----------
TOTAL NET ASSETS............................................ $2,830,235
==========
Investments in shares of the Portfolios, at cost............ $3,009,453
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-21
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS GLOBAL BOND GROWTH GLOBAL HARD
ALLOCATION* VIP FUND VIP FUND VIP FUND ASSETS FUND
----------- ----------- ----------- ---------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $937,172 $17,139,895 $46,399,867 $4,402,872 $ 8,441,371
Receivable for shares of the Portfolios sold................ -- -- 142,964 -- 5,854
Receivable for policy-related transactions.................. 21,000 6,720 -- 115 --
-------- ----------- ----------- ---------- -----------
Total assets............................................. 958,172 17,146,615 46,542,831 4,402,987 8,447,225
-------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 20,997 6,664 -- 115 --
Payable for policy-related transactions..................... -- -- 142,226 -- 5,855
-------- ----------- ----------- ---------- -----------
Total liabilities........................................ 20,997 6,664 142,226 115 5,855
-------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $937,175 $17,139,951 $46,400,212 $4,401,091 $ 8,440,872
Retained by AXA Equitable in Separate Account FP............ -- -- 393 1,781 498
-------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $999,567 $17,956,273 $46,794,456 $5,140,526 $11,301,460
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,028,162
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 13,013
-----------
Total assets............................................. 13,041,175
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 13,013
Payable for policy-related transactions..................... --
-----------
Total liabilities........................................ 13,013
-----------
NET ASSETS.................................................. $13,028,162
===========
NET ASSETS:
Accumulation unit values.................................... $13,016,072
Retained by AXA Equitable in Separate Account FP............ 12,090
-----------
TOTAL NET ASSETS............................................ $13,028,162
===========
Investments in shares of the Portfolios, at cost............ $13,377,187
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-22
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides the Portfolio shares held by the Variable
Investment Options of the Account:
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
1290 VT CONVERTIBLE SECURITIES.............................. B 119,703
1290 VT DOUBLELINE DYNAMIC ALLOCATION....................... B 1,014,274
1290 VT DOUBLELINE OPPORTUNISTIC BOND....................... B 62,901
1290 VT EQUITY INCOME....................................... A 1,182,345
1290 VT EQUITY INCOME....................................... B 3,983,917
1290 VT GAMCO MERGERS & ACQUISITIONS........................ A 60,181
1290 VT GAMCO MERGERS & ACQUISITIONS........................ B 1,221,476
1290 VT GAMCO SMALL COMPANY VALUE........................... A 140,596
1290 VT GAMCO SMALL COMPANY VALUE........................... B 3,109,813
1290 VT SMARTBETA EQUITY.................................... B 109,269
1290 VT SOCIALLY RESPONSIBLE................................ A 38,861
1290 VT SOCIALLY RESPONSIBLE................................ B 215,486
ALL ASSET GROWTH-ALT 20..................................... B 1,609,294
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.................................... CLASS 4 388,507
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)........ CLASS 4 922,847
AXA 400 MANAGED VOLATILITY.................................. B 243,969
AXA 500 MANAGED VOLATILITY.................................. B 471,708
AXA 2000 MANAGED VOLATILITY................................. B 237,371
AXA AGGRESSIVE ALLOCATION................................... A 5,593,117
AXA AGGRESSIVE ALLOCATION................................... B 7,818,963
AXA BALANCED STRATEGY....................................... B 2,674,588
AXA CONSERVATIVE ALLOCATION................................. A 2,219,396
AXA CONSERVATIVE ALLOCATION................................. B 822,329
AXA CONSERVATIVE GROWTH STRATEGY............................ B 526,438
AXA CONSERVATIVE STRATEGY................................... B 256,348
AXA CONSERVATIVE-PLUS ALLOCATION............................ A 1,814,262
AXA CONSERVATIVE-PLUS ALLOCATION............................ B 1,478,398
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ A 1,760,907
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ B 6,307,150
AXA GROWTH STRATEGY......................................... B 3,521,111
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... A 1,310,238
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... B 4,111,647
AXA INTERNATIONAL MANAGED VOLATILITY........................ B 304,458
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. A 1,296,990
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. B 4,553,520
AXA LARGE CAP CORE MANAGED VOLATILITY....................... A 465,367
AXA LARGE CAP CORE MANAGED VOLATILITY....................... B 2,496,196
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... A 1,514,006
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... B 7,005,545
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... A 14,580,243
|
The accompanying notes are an integral part of these financial statements.
FSA-23
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... B 7,198,635
AXA MID CAP VALUE MANAGED VOLATILITY........................ A 11,391,959
AXA MID CAP VALUE MANAGED VOLATILITY........................ B 873,205
AXA MODERATE ALLOCATION..................................... A 50,308,539
AXA MODERATE ALLOCATION..................................... B 11,787,783
AXA MODERATE GROWTH STRATEGY................................ B 6,828,024
AXA MODERATE-PLUS ALLOCATION................................ A 15,908,384
AXA MODERATE-PLUS ALLOCATION................................ B 23,347,653
AXA/AB SMALL CAP GROWTH..................................... A 7,872,708
AXA/AB SMALL CAP GROWTH..................................... B 4,395,895
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ A 1,035,996
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ B 6,219,307
AXA/JANUS ENTERPRISE........................................ A 1,091,561
AXA/JANUS ENTERPRISE........................................ B 1,418,463
AXA/LOOMIS SAYLES GROWTH.................................... A 1,986,582
AXA/LOOMIS SAYLES GROWTH.................................... B 3,311,787
BLACKROCK GLOBAL ALLOCATION V.I. FUND....................... CLASS III 419,823
CHARTER/SM /MULTI-SECTOR BOND............................... A 14,467,398
CHARTER/SM /MULTI-SECTOR BOND............................... B 3,909,782
CHARTER/SM /SMALL CAP GROWTH................................ B 1,040,450
CHARTER/SM /SMALL CAP VALUE................................. A 713,978
CHARTER/SM /SMALL CAP VALUE................................. B 903,430
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO...................... CLASS II 35,951
EQ/AMERICAN CENTURY MID CAP VALUE........................... B 2,635,637
EQ/BLACKROCK BASIC VALUE EQUITY............................. A 1,759,008
EQ/BLACKROCK BASIC VALUE EQUITY............................. B 7,243,855
EQ/CAPITAL GUARDIAN RESEARCH................................ A 680,669
EQ/CAPITAL GUARDIAN RESEARCH................................ B 4,354,667
EQ/COMMON STOCK INDEX....................................... A 42,889,495
EQ/COMMON STOCK INDEX....................................... B 6,920,955
EQ/CORE BOND INDEX.......................................... A 2,637,791
EQ/CORE BOND INDEX.......................................... B 2,486,532
EQ/EQUITY 500 INDEX......................................... A 13,331,857
EQ/EQUITY 500 INDEX......................................... B 6,574,184
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP.................. B 3,053,910
EQ/FRANKLIN RISING DIVIDENDS................................ B 2,085,433
EQ/FRANKLIN STRATEGIC INCOME................................ B 3,278,495
EQ/GLOBAL BOND PLUS......................................... A 850,983
EQ/GLOBAL BOND PLUS......................................... B 1,031,116
EQ/GOLDMAN SACHS MID CAP VALUE.............................. B 562,515
EQ/INTERMEDIATE GOVERNMENT BOND............................. A 2,931,643
EQ/INTERMEDIATE GOVERNMENT BOND............................. B 1,841,764
EQ/INTERNATIONAL EQUITY INDEX............................... A 26,378,022
EQ/INTERNATIONAL EQUITY INDEX............................... B 6,572,246
|
The accompanying notes are an integral part of these financial statements.
FSA-24
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
---------------- ---------------------
EQ/INVESCO COMSTOCK......................................... A 773,176
EQ/INVESCO COMSTOCK......................................... B 906,139
EQ/INVESCO GLOBAL REAL ESTATE............................... B 2,431,598
EQ/INVESCO INTERNATIONAL GROWTH............................. B 985,703
EQ/IVY ENERGY............................................... B 2,654,216
EQ/IVY MID CAP GROWTH....................................... B 3,001,771
EQ/IVY SCIENCE AND TECHNOLOGY............................... B 1,275,689
EQ/JPMORGAN VALUE OPPORTUNITIES............................. A 427,218
EQ/JPMORGAN VALUE OPPORTUNITIES............................. B 2,467,492
EQ/LARGE CAP GROWTH INDEX................................... A 1,450,724
EQ/LARGE CAP GROWTH INDEX................................... B 10,022,637
EQ/LARGE CAP VALUE INDEX.................................... A 1,390,918
EQ/LARGE CAP VALUE INDEX.................................... B 1,739,938
EQ/LAZARD EMERGING MARKETS EQUITY........................... B 2,739,826
EQ/MFS INTERNATIONAL GROWTH................................. B 6,910,220
EQ/MFS INTERNATIONAL VALUE.................................. B 4,184,162
EQ/MFS UTILITIES SERIES..................................... B 79,857
EQ/MID CAP INDEX............................................ A 2,743,114
EQ/MID CAP INDEX............................................ B 8,304,199
EQ/MONEY MARKET............................................. A 105,495,633
EQ/MONEY MARKET............................................. B 43,332,671
EQ/PIMCO REAL RETURN........................................ B 2,044,898
EQ/PIMCO TOTAL RETURN....................................... B 6,452,442
EQ/PIMCO ULTRA SHORT BOND................................... A 1,615,174
EQ/PIMCO ULTRA SHORT BOND................................... B 1,780,218
EQ/QUALITY BOND PLUS........................................ A 2,756,046
EQ/QUALITY BOND PLUS........................................ B 2,258,746
EQ/SMALL COMPANY INDEX...................................... A 5,079,561
EQ/SMALL COMPANY INDEX...................................... B 4,390,128
EQ/T. ROWE PRICE GROWTH STOCK............................... A 364,531
EQ/T. ROWE PRICE GROWTH STOCK............................... B 2,341,623
EQ/T. ROWE PRICE HEALTH SCIENCES............................ B 191,597
EQ/UBS GROWTH & INCOME...................................... B 1,473,204
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO............. SERVICE CLASS 2 69,294
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO .................... SERVICE CLASS 2 81,147
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO........... SERVICE CLASS 2 1,467,363
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO................... SERVICE CLASS 2 464,480
FIDELITY(R) VIP HIGH INCOME PORTFOLIO....................... SERVICE CLASS 2 550,624
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO............. SERVICE CLASS 2 3,060,139
FIDELITY(R) VIP MID CAP PORTFOLIO........................... SERVICE CLASS 2 972,939
FIDELITY(R) VIP VALUE PORTFOLIO............................. SERVICE CLASS 2 102,269
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO.................. SERVICE CLASS 2 25,661
|
The accompanying notes are an integral part of these financial statements.
FSA-25
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
-------------------- ---------------------
FRANKLIN MUTUAL SHARES VIP FUND............................. CLASS 2 468,466
FRANKLIN SMALL CAP VALUE VIP FUND........................... CLASS 2 760,629
INVESCO V.I. DIVERSIFIED DIVIDEND FUND...................... SERIES II 574,462
INVESCO V.I. MID CAP CORE EQUITY FUND....................... SERIES II 325,850
INVESCO V.I. SMALL CAP EQUITY FUND.......................... SERIES II 337,897
IVY VIP GLOBAL EQUITY INCOME................................ CLASS II 76,292
IVY VIP HIGH INCOME......................................... CLASS II 10,641,803
IVY VIP SMALL CAP GROWTH.................................... CLASS II 1,608,282
MFS(R) INVESTORS TRUST SERIES............................... SERVICE CLASS 118,530
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO....... SERVICE CLASS 344,498
MULTIMANAGER AGGRESSIVE EQUITY.............................. A 7,249,289
MULTIMANAGER AGGRESSIVE EQUITY.............................. B 580,629
MULTIMANAGER CORE BOND...................................... A 1,992,977
MULTIMANAGER CORE BOND...................................... B 4,265,604
MULTIMANAGER MID CAP GROWTH................................. A 1,312,177
MULTIMANAGER MID CAP GROWTH................................. B 1,958,220
MULTIMANAGER MID CAP VALUE.................................. A 625,091
MULTIMANAGER MID CAP VALUE.................................. B 1,905,632
MULTIMANAGER TECHNOLOGY..................................... A 950,133
MULTIMANAGER TECHNOLOGY..................................... B 4,573,286
NATURAL RESOURCES PORTFOLIO................................. CLASS II 90,126
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO............. ADVISOR CLASS 1,566,273
T. ROWE PRICE EQUITY INCOME PORTFOLIO....................... CLASS II 560,850
TARGET 2015 ALLOCATION...................................... B 213,001
TARGET 2025 ALLOCATION...................................... B 942,405
TARGET 2035 ALLOCATION...................................... B 445,126
TARGET 2045 ALLOCATION...................................... B 264,833
TARGET 2055 ALLOCATION...................................... B 92,815
TEMPLETON DEVELOPING MARKETS VIP FUND....................... CLASS 2 2,007,013
TEMPLETON GLOBAL BOND VIP FUND.............................. CLASS 2 2,756,974
TEMPLETON GROWTH VIP FUND................................... CLASS 2 360,596
VANECK VIP GLOBAL HARD ASSETS FUND.......................... CLASS S 515,661
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX PORTFOLIO.. INVESTOR SHARE CLASS 342,576
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
FSA-26
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides units outstanding and unit values associated with
the Variable Investment Options of the Account and is further categorized by
share class and contract charges:
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $ 12.19 13
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $121.88 5
1290 VT CONVERTIBLE SECURITIES.................... 0.60% B $119.95 3
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $ 10.87 97
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $118.12 77
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.60% B $114.18 5
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.90% B $112.24 --
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $ 10.12 7
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $101.17 5
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.60% B $100.17 1
1290 VT EQUITY INCOME............................. 0.00% A $165.68 4
1290 VT EQUITY INCOME............................. 0.60% A $154.41 22
1290 VT EQUITY INCOME............................. 0.80% A $150.81 --
1290 VT EQUITY INCOME............................. 0.90% A $149.05 2
1290 VT EQUITY INCOME............................. 0.00% B $228.29 55
1290 VT EQUITY INCOME............................. 0.60% B $152.60 15
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $ 14.18 27
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $141.81 2
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $145.88 13
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $181.95 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.60% B $135.96 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.80% B $132.79 --
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.90% B $131.24 4
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $ 21.15 258
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $211.48 7
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $242.93 13
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $371.93 277
1290 VT GAMCO SMALL COMPANY VALUE................. 0.60% B $226.42 201
1290 VT GAMCO SMALL COMPANY VALUE................. 0.80% B $221.14 1
1290 VT GAMCO SMALL COMPANY VALUE................. 0.90% B $218.55 19
1290 VT SMARTBETA EQUITY.......................... 0.00% B $ 11.84 58
1290 VT SMARTBETA EQUITY.......................... 0.00% B $118.40 3
1290 VT SMARTBETA EQUITY.......................... 0.60% B $116.52 2
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% A $327.79 1
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% B $205.36 5
1290 VT SOCIALLY RESPONSIBLE...................... 0.60% B $182.75 7
1290 VT SOCIALLY RESPONSIBLE...................... 0.80% B $175.75 --
1290 VT SOCIALLY RESPONSIBLE...................... 0.90% B $172.35 --
ALL ASSET GROWTH-ALT 20........................... 0.00% B $ 11.11 80
ALL ASSET GROWTH-ALT 20........................... 0.00% B $153.87 148
ALL ASSET GROWTH-ALT 20........................... 0.60% B $146.02 41
ALL ASSET GROWTH-ALT 20........................... 0.80% B $143.49 --
ALL ASSET GROWTH-ALT 20........................... 0.90% B $142.24 1
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $ 13.09 57
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $130.88 36
|
The accompanying notes are an integral part of these financial statements.
FSA-27
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.60% CLASS 4 $126.51 17
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.80% CLASS 4 $125.08 --
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.90% CLASS 4 $124.37 5
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $ 11.03 254
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $110.32 99
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.60% CLASS 4 $106.64 45
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.80% CLASS 4 $105.43 --
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.90% CLASS 4 $104.83 6
AXA 400 MANAGED VOLATILITY........................ 0.00% B $191.95 13
AXA 400 MANAGED VOLATILITY........................ 0.60% B $182.16 10
AXA 400 MANAGED VOLATILITY........................ 0.80% B $179.00 --
AXA 400 MANAGED VOLATILITY........................ 0.90% B $177.44 --
AXA 500 MANAGED VOLATILITY........................ 0.00% B $214.17 34
AXA 500 MANAGED VOLATILITY........................ 0.60% B $203.25 14
AXA 500 MANAGED VOLATILITY........................ 0.80% B $199.72 --
AXA 500 MANAGED VOLATILITY........................ 0.90% B $197.98 1
AXA 2000 MANAGED VOLATILITY....................... 0.00% B $179.09 16
AXA 2000 MANAGED VOLATILITY....................... 0.60% B $169.96 7
AXA 2000 MANAGED VOLATILITY....................... 0.80% B $167.01 --
AXA 2000 MANAGED VOLATILITY....................... 0.90% B $165.56 1
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $ 24.19 70
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $145.10 --
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $240.35 111
AXA AGGRESSIVE ALLOCATION......................... 0.60% A $219.28 123
AXA AGGRESSIVE ALLOCATION......................... 0.80% A $212.64 1
AXA AGGRESSIVE ALLOCATION......................... 0.90% A $209.40 5
AXA AGGRESSIVE ALLOCATION......................... 0.00% B $235.46 295
AXA AGGRESSIVE ALLOCATION......................... 0.60% B $214.81 45
AXA BALANCED STRATEGY............................. 0.00% B $156.00 246
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $ 14.78 138
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $132.64 5
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $162.27 37
AXA CONSERVATIVE ALLOCATION....................... 0.60% A $148.05 62
AXA CONSERVATIVE ALLOCATION....................... 0.80% A $143.57 --
AXA CONSERVATIVE ALLOCATION....................... 0.90% A $141.38 14
AXA CONSERVATIVE ALLOCATION....................... 0.00% B $158.96 35
AXA CONSERVATIVE ALLOCATION....................... 0.60% B $145.02 12
AXA CONSERVATIVE GROWTH STRATEGY.................. 0.00% B $146.65 48
AXA CONSERVATIVE STRATEGY......................... 0.00% B $128.64 23
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $ 17.11 126
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $137.55 --
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $181.08 32
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% A $165.20 48
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.80% A $160.20 1
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.90% A $157.76 2
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% B $177.40 63
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% B $161.84 14
|
The accompanying notes are an integral part of these financial statements.
FSA-28
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $ 25.35 32
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $358.64 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $577.44 44
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% B $309.60 88
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $272.24 210
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $369.11 11
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.80% B $260.76 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.90% B $255.21 19
AXA GROWTH STRATEGY............................... 0.00% B $176.45 332
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% A $236.86 50
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% A $168.13 3
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% B $153.51 120
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% B $136.20 133
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.80% B $131.39 --
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.90% B $128.46 18
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.00% B $120.70 26
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.60% B $114.55 3
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.80% B $112.56 --
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.90% B $111.58 --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $ 16.35 35
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $175.27 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $223.17 61
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% A $156.54 1
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% B $163.14 112
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $156.58 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $159.87 184
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.80% B $139.64 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.90% B $150.30 23
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $ 29.69 13
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $333.18 12
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% A $229.45 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% B $214.54 74
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% B $190.70 37
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.80% B $183.32 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.90% B $179.74 2
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $ 34.99 13
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $342.43 --
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $450.72 94
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% A $275.09 6
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% B $430.17 84
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $216.95 41
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $377.58 379
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.80% B $361.45 5
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.90% B $353.64 27
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $ 25.23 12
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $213.05 1
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $217.16 89
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $287.53 198
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $196.08 11
|
The accompanying notes are an integral part of these financial statements.
FSA-29
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $223.86 575
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.80% A $185.88 14
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% A $210.45 96
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% B $214.35 83
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $189.76 6
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $220.96 428
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% B $207.72 --
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $ 30.35 16
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $269.59 1
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $348.51 23
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $374.40 106
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $255.98 4
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $297.15 19
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $305.90 314
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.80% A $292.83 3
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.90% A $286.51 24
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% B $347.03 35
AXA MODERATE ALLOCATION........................... 0.00% A $ 18.27 369
AXA MODERATE ALLOCATION........................... 0.00% A $137.48 4
AXA MODERATE ALLOCATION........................... 0.00% A $393.57 185
AXA MODERATE ALLOCATION........................... 0.60% A $832.85 627
AXA MODERATE ALLOCATION........................... 0.80% A $266.75 9
AXA MODERATE ALLOCATION........................... 0.90% A $335.95 129
AXA MODERATE ALLOCATION........................... 0.00% B $193.78 520
AXA MODERATE ALLOCATION........................... 0.60% B $175.85 289
AXA MODERATE GROWTH STRATEGY...................... 0.00% B $166.06 643
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $ 21.08 490
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $142.76 2
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $222.44 362
AXA MODERATE-PLUS ALLOCATION...................... 0.60% A $202.93 290
AXA MODERATE-PLUS ALLOCATION...................... 0.80% A $196.79 3
AXA MODERATE-PLUS ALLOCATION...................... 0.90% A $193.79 43
AXA MODERATE-PLUS ALLOCATION...................... 0.00% B $217.90 926
AXA MODERATE-PLUS ALLOCATION...................... 0.60% B $198.79 158
AXA/AB SMALL CAP GROWTH........................... 0.00% A $ 38.70 137
AXA/AB SMALL CAP GROWTH........................... 0.00% A $508.91 64
AXA/AB SMALL CAP GROWTH........................... 0.60% A $446.68 172
AXA/AB SMALL CAP GROWTH........................... 0.80% A $427.59 3
AXA/AB SMALL CAP GROWTH........................... 0.90% A $418.36 18
AXA/AB SMALL CAP GROWTH........................... 0.00% B $417.73 35
AXA/AB SMALL CAP GROWTH........................... 0.60% B $331.02 147
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $ 35.48 78
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $333.99 --
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $470.86 18
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% B $269.42 124
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.60% B $232.39 127
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.80% B $230.65 1
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.90% B $226.20 11
|
The accompanying notes are an integral part of these financial statements.
FSA-30
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA/JANUS ENTERPRISE.............................. 0.00% A $198.06 32
AXA/JANUS ENTERPRISE.............................. 0.60% A $184.59 59
AXA/JANUS ENTERPRISE.............................. 0.80% A $180.29 --
AXA/JANUS ENTERPRISE.............................. 0.90% A $178.18 5
AXA/JANUS ENTERPRISE.............................. 0.00% B $ 11.35 14
AXA/JANUS ENTERPRISE.............................. 0.00% B $286.64 65
AXA/JANUS ENTERPRISE.............................. 0.60% B $182.43 25
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $ 25.82 65
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $275.24 8
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% A $256.53 39
AXA/LOOMIS SAYLES GROWTH.......................... 0.80% A $250.55 --
AXA/LOOMIS SAYLES GROWTH.......................... 0.90% A $247.62 4
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% B $336.10 60
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% B $253.58 18
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $ 14.25 293
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $142.46 9
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $ 14.66 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $238.57 67
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% A $393.16 82
CHARTER/SM /MULTI-SECTOR BOND..................... 0.80% A $154.48 3
CHARTER/SM /MULTI-SECTOR BOND..................... 0.90% A $229.10 17
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% B $144.32 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% B $110.73 75
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $156.94 1
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $230.14 41
CHARTER/SM /SMALL CAP GROWTH...................... 0.60% B $146.34 19
CHARTER/SM/ SMALL CAP GROWTH...................... 0.80% B $142.95 --
CHARTER/SM/ SMALL CAP GROWTH...................... 0.90% B $141.28 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% A $293.02 36
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% A $267.34 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% B $307.37 17
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $266.60 2
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $273.81 27
CHARTER/SM/ SMALL CAP VALUE....................... 0.80% B $263.08 --
CHARTER/SM/ SMALL CAP VALUE....................... 0.90% B $257.41 --
CHARTER/SM /SMALL CAP VALUE....................... 0.90% B $257.99 2
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ 0.00% CLASS II $ 11.07 56
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $ 21.75 242
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $217.49 116
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.60% B $206.40 79
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.80% B $202.82 --
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.90% B $201.05 6
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $ 27.63 156
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $258.09 3
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $360.36 83
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% A $328.79 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% B $474.29 116
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $272.25 22
|
The accompanying notes are an integral part of these financial statements.
FSA-31
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $ 416.31 188
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.80% B $ 398.52 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.90% B $ 389.92 19
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 35.85 36
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 310.61 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 421.95 30
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% A $ 262.91 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% B $ 320.51 39
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% B $ 285.30 269
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.80% B $ 274.39 3
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.90% B $ 269.10 26
EQ/COMMON STOCK INDEX............................. 0.00% A $ 32.85 216
EQ/COMMON STOCK INDEX............................. 0.00% A $ 677.71 259
EQ/COMMON STOCK INDEX............................. 0.60% A $1,689.68 586
EQ/COMMON STOCK INDEX............................. 0.80% A $ 403.29 27
EQ/COMMON STOCK INDEX............................. 0.90% A $ 683.50 134
EQ/COMMON STOCK INDEX............................. 0.00% B $ 211.64 306
EQ/COMMON STOCK INDEX............................. 0.60% B $ 226.64 620
EQ/CORE BOND INDEX................................ 0.00% A $ 137.67 100
EQ/CORE BOND INDEX................................ 0.00% A $ 143.89 4
EQ/CORE BOND INDEX................................ 0.60% A $ 133.22 3
EQ/CORE BOND INDEX................................ 0.60% A $ 159.26 60
EQ/CORE BOND INDEX................................ 0.80% A $ 125.45 --
EQ/CORE BOND INDEX................................ 0.90% A $ 123.31 9
EQ/CORE BOND INDEX................................ 0.00% B $ 143.04 98
EQ/CORE BOND INDEX................................ 0.60% B $ 155.62 10
EQ/CORE BOND INDEX................................ 0.60% B $ 158.32 54
EQ/EQUITY 500 INDEX............................... 0.00% A $ 32.35 741
EQ/EQUITY 500 INDEX............................... 0.00% A $ 777.94 262
EQ/EQUITY 500 INDEX............................... 0.60% A $ 676.96 391
EQ/EQUITY 500 INDEX............................... 0.80% A $ 453.55 8
EQ/EQUITY 500 INDEX............................... 0.90% A $ 628.01 68
EQ/EQUITY 500 INDEX............................... 0.00% B $ 235.43 722
EQ/EQUITY 500 INDEX............................... 0.60% B $ 216.18 436
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 32.04 179
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 211.91 110
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 401.90 22
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.60% B $ 201.11 274
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.80% B $ 197.61 --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.90% B $ 195.89 4
EQ/FRANKLIN RISING DIVIDENDS...................... 0.00% B $ 232.46 132
EQ/FRANKLIN RISING DIVIDENDS...................... 0.60% B $ 220.61 90
EQ/FRANKLIN RISING DIVIDENDS...................... 0.80% B $ 216.78 --
EQ/FRANKLIN RISING DIVIDENDS...................... 0.90% B $ 214.89 7
EQ/FRANKLIN STRATEGIC INCOME...................... 0.00% B $ 136.15 171
EQ/FRANKLIN STRATEGIC INCOME...................... 0.60% B $ 129.21 68
EQ/FRANKLIN STRATEGIC INCOME...................... 0.80% B $ 126.96 --
EQ/FRANKLIN STRATEGIC INCOME...................... 0.90% B $ 125.86 11
|
The accompanying notes are an integral part of these financial statements.
FSA-32
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/GLOBAL BOND PLUS............................... 0.00% A $ 12.44 51
EQ/GLOBAL BOND PLUS............................... 0.00% A $142.20 18
EQ/GLOBAL BOND PLUS............................... 0.60% A $124.12 26
EQ/GLOBAL BOND PLUS............................... 0.80% A $121.23 --
EQ/GLOBAL BOND PLUS............................... 0.90% A $119.81 9
EQ/GLOBAL BOND PLUS............................... 0.00% B $135.52 51
EQ/GLOBAL BOND PLUS............................... 0.60% B $122.66 18
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.00% B $182.47 35
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.60% B $173.16 12
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.80% B $170.16 --
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.90% B $168.67 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $ 11.39 88
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $237.70 46
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% A $251.73 60
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.80% A $177.01 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.90% A $199.78 12
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $125.27 5
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $170.68 30
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% B $151.63 84
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $ 17.22 319
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $199.45 274
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% A $172.89 836
EQ/INTERNATIONAL EQUITY INDEX..................... 0.80% A $139.66 7
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% A $160.91 79
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% B $136.17 189
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% B $128.40 218
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% B $118.46 --
EQ/INVESCO COMSTOCK............................... 0.00% A $ 11.79 22
EQ/INVESCO COMSTOCK............................... 0.00% A $169.29 37
EQ/INVESCO COMSTOCK............................... 0.60% A $157.77 28
EQ/INVESCO COMSTOCK............................... 0.80% A $154.10 --
EQ/INVESCO COMSTOCK............................... 0.90% A $152.29 5
EQ/INVESCO COMSTOCK............................... 0.00% B $215.50 54
EQ/INVESCO COMSTOCK............................... 0.60% B $155.85 14
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $ 16.47 251
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $164.67 143
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.60% B $156.28 48
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.80% B $153.57 --
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.90% B $152.23 7
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $ 14.21 330
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $142.11 136
EQ/INVESCO INTERNATIONAL GROWTH................... 0.60% B $134.86 55
EQ/INVESCO INTERNATIONAL GROWTH................... 0.80% B $132.52 --
EQ/INVESCO INTERNATIONAL GROWTH................... 0.90% B $131.36 5
EQ/IVY ENERGY..................................... 0.00% B $ 7.26 119
EQ/IVY ENERGY..................................... 0.00% B $ 72.62 88
EQ/IVY ENERGY..................................... 0.60% B $ 68.92 42
EQ/IVY ENERGY..................................... 0.80% B $ 67.72 --
EQ/IVY ENERGY..................................... 0.90% B $ 67.13 1
|
The accompanying notes are an integral part of these financial statements.
FSA-33
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/IVY MID CAP GROWTH............................. 0.00% B $ 23.22 127
EQ/IVY MID CAP GROWTH............................. 0.00% B $232.22 81
EQ/IVY MID CAP GROWTH............................. 0.60% B $220.39 49
EQ/IVY MID CAP GROWTH............................. 0.80% B $216.56 --
EQ/IVY MID CAP GROWTH............................. 0.90% B $214.67 3
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $ 25.37 83
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $169.19 100
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $253.69 17
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.60% B $163.54 51
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.80% B $161.69 --
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.90% B $160.77 6
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $ 30.81 90
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $269.07 --
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $350.51 10
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% B $327.29 41
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $201.61 8
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $287.28 63
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.80% B $275.00 1
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.90% B $269.06 14
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $ 41.17 52
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $367.70 2
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $442.02 37
EQ/LARGE CAP GROWTH INDEX......................... 0.60% A $290.81 1
EQ/LARGE CAP GROWTH INDEX......................... 0.00% B $219.96 131
EQ/LARGE CAP GROWTH INDEX......................... 0.60% B $195.52 486
EQ/LARGE CAP GROWTH INDEX......................... 0.80% B $187.95 5
EQ/LARGE CAP GROWTH INDEX......................... 0.90% B $184.28 22
EQ/LARGE CAP VALUE INDEX.......................... 0.00% A $108.69 38
EQ/LARGE CAP VALUE INDEX.......................... 0.60% A $101.30 37
EQ/LARGE CAP VALUE INDEX.......................... 0.80% A $ 98.94 --
EQ/LARGE CAP VALUE INDEX.......................... 0.90% A $ 97.78 31
EQ/LARGE CAP VALUE INDEX.......................... 0.00% B $125.20 88
EQ/LARGE CAP VALUE INDEX.......................... 0.60% B $100.13 26
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $ 10.83 527
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $108.31 317
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.60% B $102.79 113
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.80% B $101.00 --
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.90% B $100.12 9
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $141.11 68
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $225.18 96
EQ/MFS INTERNATIONAL GROWTH....................... 0.60% B $131.51 97
EQ/MFS INTERNATIONAL GROWTH....................... 0.80% B $128.45 --
EQ/MFS INTERNATIONAL GROWTH....................... 0.90% B $126.94 20
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $ 19.84 589
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $198.35 297
EQ/MFS INTERNATIONAL VALUE........................ 0.60% B $188.24 153
EQ/MFS INTERNATIONAL VALUE........................ 0.80% B $184.97 --
EQ/MFS INTERNATIONAL VALUE........................ 0.90% B $183.36 18
|
The accompanying notes are an integral part of these financial statements.
FSA-34
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/MFS UTILITIES SERIES........................... 0.00% B $ 19.86 101
EQ/MFS UTILITIES SERIES........................... 0.00% B $198.59 1
EQ/MID CAP INDEX.................................. 0.00% A $ 35.31 125
EQ/MID CAP INDEX.................................. 0.00% A $273.01 8
EQ/MID CAP INDEX.................................. 0.00% A $403.99 64
EQ/MID CAP INDEX.................................. 0.60% A $273.70 5
EQ/MID CAP INDEX.................................. 0.00% B $258.04 160
EQ/MID CAP INDEX.................................. 0.60% B $231.08 241
EQ/MID CAP INDEX.................................. 0.80% B $222.70 1
EQ/MID CAP INDEX.................................. 0.90% B $218.63 15
EQ/MONEY MARKET................................... 0.00% A $ 10.17 58
EQ/MONEY MARKET................................... 0.00% A $ 10.21 980
EQ/MONEY MARKET................................... 0.00% A $174.96 180
EQ/MONEY MARKET................................... 0.60% A $242.58 235
EQ/MONEY MARKET................................... 0.80% A $135.63 1
EQ/MONEY MARKET................................... 0.90% A $149.35 15
EQ/MONEY MARKET................................... 0.00% B $133.70 148
EQ/MONEY MARKET................................... 0.60% B $124.25 183
EQ/PIMCO REAL RETURN.............................. 0.00% B $ 12.32 119
EQ/PIMCO REAL RETURN.............................. 0.00% B $123.20 134
EQ/PIMCO REAL RETURN.............................. 0.60% B $116.92 48
EQ/PIMCO REAL RETURN.............................. 0.80% B $114.89 --
EQ/PIMCO REAL RETURN.............................. 0.90% B $113.89 4
EQ/PIMCO TOTAL RETURN............................. 0.00% B $ 12.99 219
EQ/PIMCO TOTAL RETURN............................. 0.00% B $129.93 302
EQ/PIMCO TOTAL RETURN............................. 0.60% B $123.31 183
EQ/PIMCO TOTAL RETURN............................. 0.80% B $121.17 1
EQ/PIMCO TOTAL RETURN............................. 0.90% B $120.11 30
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% A $121.24 57
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $102.86 2
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $112.99 69
EQ/PIMCO ULTRA SHORT BOND......................... 0.80% A $110.36 --
EQ/PIMCO ULTRA SHORT BOND......................... 0.90% A $109.07 8
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% B $124.24 101
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% B $112.39 44
EQ/QUALITY BOND PLUS.............................. 0.00% A $ 12.45 62
EQ/QUALITY BOND PLUS.............................. 0.00% A $257.31 26
EQ/QUALITY BOND PLUS.............................. 0.60% A $208.51 67
EQ/QUALITY BOND PLUS.............................. 0.80% A $188.46 1
EQ/QUALITY BOND PLUS.............................. 0.90% A $193.19 7
EQ/QUALITY BOND PLUS.............................. 0.00% B $173.62 38
EQ/QUALITY BOND PLUS.............................. 0.60% B $154.00 78
EQ/SMALL COMPANY INDEX............................ 0.00% A $ 30.87 108
EQ/SMALL COMPANY INDEX............................ 0.00% A $183.31 1
EQ/SMALL COMPANY INDEX............................ 0.00% A $457.91 50
EQ/SMALL COMPANY INDEX............................ 0.60% A $285.70 8
EQ/SMALL COMPANY INDEX............................ 0.60% A $368.53 46
EQ/SMALL COMPANY INDEX............................ 0.80% A $355.04 --
EQ/SMALL COMPANY INDEX............................ 0.90% A $349.48 6
|
The accompanying notes are an integral part of these financial statements.
FSA-35
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/SMALL COMPANY INDEX................................. 0.00% B $332.45 99
EQ/SMALL COMPANY INDEX................................. 0.60% B $320.75 --
EQ/SMALL COMPANY INDEX................................. 0.60% B $324.91 26
EQ/SMALL COMPANY INDEX................................. 0.90% B $305.45 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $ 43.42 352
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $249.97 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $250.49 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% A $233.23 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $246.83 30
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $293.39 135
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% B $230.30 207
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.80% B $225.02 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.90% B $222.42 17
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $ 39.13 127
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $391.31 7
EQ/UBS GROWTH & INCOME................................. 0.00% B $167.13 1
EQ/UBS GROWTH & INCOME................................. 0.00% B $240.25 22
EQ/UBS GROWTH & INCOME................................. 0.60% B $155.77 34
EQ/UBS GROWTH & INCOME................................. 0.80% B $152.14 --
EQ/UBS GROWTH & INCOME................................. 0.90% B $150.36 3
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 24.21 10
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $250.34 4
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $ 28.25 46
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $300.33 1
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $ 10.21 101
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $102.14 4
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $ 30.46 56
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $220.09 19
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $299.00 1
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.60% SERVICE CLASS 2 $208.87 11
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.90% SERVICE CLASS 2 $203.46 1
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $ 24.37 55
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $253.48 5
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 16.07 619
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $176.56 152
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $ 31.12 177
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $188.62 66
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $495.85 7
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.60% SERVICE CLASS 2 $179.00 37
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.80% SERVICE CLASS 2 $175.89 --
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.90% SERVICE CLASS 2 $174.36 2
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $ 32.58 35
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $294.80 1
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $ 34.57 7
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $354.46 --
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $ 17.39 41
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $173.91 30
|
The accompanying notes are an integral part of these financial statements.
FSA-36
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
FRANKLIN MUTUAL SHARES VIP FUND................... 0.60% CLASS 2 $ 165.05 13
FRANKLIN MUTUAL SHARES VIP FUND................... 0.80% CLASS 2 $ 162.18 --
FRANKLIN MUTUAL SHARES VIP FUND................... 0.90% CLASS 2 $ 160.77 1
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 19.38 173
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 193.81 19
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.60% CLASS 2 $ 183.93 20
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.80% CLASS 2 $ 180.74 --
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.90% CLASS 2 $ 179.16 2
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 18.73 568
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 187.25 15
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 15.98 27
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 159.75 11
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.60% SERIES II $ 151.61 8
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.80% SERIES II $ 148.98 --
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.90% SERIES II $ 147.68 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 17.52 22
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 175.15 20
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.60% SERIES II $ 166.22 7
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.80% SERIES II $ 163.34 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.90% SERIES II $ 161.91 --
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 17.57 29
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 175.70 --
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 11.97 471
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 119.67 181
IVY VIP HIGH INCOME............................... 0.60% CLASS II $ 115.67 66
IVY VIP HIGH INCOME............................... 0.80% CLASS II $ 114.36 --
IVY VIP HIGH INCOME............................... 0.90% CLASS II $ 113.71 4
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 19.24 37
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 192.42 36
IVY VIP SMALL CAP GROWTH.......................... 0.60% CLASS II $ 182.61 23
IVY VIP SMALL CAP GROWTH.......................... 0.80% CLASS II $ 179.44 --
IVY VIP SMALL CAP GROWTH.......................... 0.90% CLASS II $ 177.87 2
MFS(R) INVESTORS TRUST SERIES..................... 0.00% SERVICE CLASS $ 218.20 9
MFS(R) INVESTORS TRUST SERIES..................... 0.60% SERVICE CLASS $ 207.08 5
MFS(R) INVESTORS TRUST SERIES..................... 0.80% SERVICE CLASS $ 203.49 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.00% SERVICE CLASS $ 243.20 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.60% SERVICE CLASS $ 230.81 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.80% SERVICE CLASS $ 226.80 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.90% SERVICE CLASS $ 224.83 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 37.47 15
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 212.03 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 390.01 130
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $ 289.95 3
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $1,472.64 215
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.80% A $ 213.59 13
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.90% A $ 380.73 66
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% B $ 198.63 61
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% B $ 177.24 107
|
The accompanying notes are an integral part of these financial statements.
FSA-37
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
MULTIMANAGER CORE BOND............................ 0.00% A $ 14.28 87
MULTIMANAGER CORE BOND............................ 0.00% A $168.48 --
MULTIMANAGER CORE BOND............................ 0.00% A $178.30 97
MULTIMANAGER CORE BOND............................ 0.60% A $169.75 3
MULTIMANAGER CORE BOND............................ 0.00% B $183.79 100
MULTIMANAGER CORE BOND............................ 0.60% B $165.92 121
MULTIMANAGER CORE BOND............................ 0.80% B $160.33 --
MULTIMANAGER CORE BOND............................ 0.90% B $157.61 15
MULTIMANAGER MID CAP GROWTH....................... 0.00% A $457.16 24
MULTIMANAGER MID CAP GROWTH....................... 0.60% A $252.28 1
MULTIMANAGER MID CAP GROWTH....................... 0.00% B $403.71 11
MULTIMANAGER MID CAP GROWTH....................... 0.60% B $235.29 41
MULTIMANAGER MID CAP GROWTH....................... 0.80% B $355.92 --
MULTIMANAGER MID CAP GROWTH....................... 0.90% B $223.50 6
MULTIMANAGER MID CAP VALUE........................ 0.00% A $ 29.99 15
MULTIMANAGER MID CAP VALUE........................ 0.00% A $263.82 --
MULTIMANAGER MID CAP VALUE........................ 0.00% A $400.77 19
MULTIMANAGER MID CAP VALUE........................ 0.60% A $240.23 1
MULTIMANAGER MID CAP VALUE........................ 0.00% B $262.46 17
MULTIMANAGER MID CAP VALUE........................ 0.60% B $236.93 78
MULTIMANAGER MID CAP VALUE........................ 0.80% B $228.95 --
MULTIMANAGER MID CAP VALUE........................ 0.90% B $225.07 8
MULTIMANAGER TECHNOLOGY........................... 0.00% A $ 51.76 37
MULTIMANAGER TECHNOLOGY........................... 0.00% A $723.43 28
MULTIMANAGER TECHNOLOGY........................... 0.60% A $365.30 3
MULTIMANAGER TECHNOLOGY........................... 0.00% B $588.13 46
MULTIMANAGER TECHNOLOGY........................... 0.60% B $327.27 234
MULTIMANAGER TECHNOLOGY........................... 0.80% B $518.52 1
MULTIMANAGER TECHNOLOGY........................... 0.90% B $310.88 12
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 12.85 72
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 49.95 20
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.00% ADVISOR CLASS $ 62.55 116
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.60% ADVISOR CLASS $ 59.36 30
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.80% ADVISOR CLASS $ 58.33 --
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.90% ADVISOR CLASS $ 57.82 8
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.00% CLASS II $189.91 41
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.60% CLASS II $180.23 26
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.80% CLASS II $177.10 --
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.90% CLASS II $175.55 3
TARGET 2015 ALLOCATION............................ 0.00% B $ 19.19 41
TARGET 2015 ALLOCATION............................ 0.00% B $150.86 6
TARGET 2025 ALLOCATION............................ 0.00% B $ 21.74 95
TARGET 2025 ALLOCATION............................ 0.00% B $109.58 4
TARGET 2025 ALLOCATION............................ 0.00% B $161.71 22
TARGET 2025 ALLOCATION............................ 0.60% B $107.18 33
TARGET 2025 ALLOCATION............................ 0.80% B $106.39 --
TARGET 2035 ALLOCATION............................ 0.00% B $ 23.39 57
TARGET 2035 ALLOCATION............................ 0.00% B $110.83 5
|
The accompanying notes are an integral part of these financial statements.
FSA-38
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- -------------------- ---------- -----------
TARGET 2035 ALLOCATION............................ 0.00% B $167.54 9
TARGET 2035 ALLOCATION............................ 0.60% B $108.41 12
TARGET 2045 ALLOCATION............................ 0.00% B $ 24.87 36
TARGET 2045 ALLOCATION............................ 0.00% B $111.69 9
TARGET 2045 ALLOCATION............................ 0.00% B $170.79 4
TARGET 2045 ALLOCATION............................ 0.60% B $109.25 2
TARGET 2055 ALLOCATION............................ 0.00% B $ 11.41 8
TARGET 2055 ALLOCATION............................ 0.00% B $114.10 6
TARGET 2055 ALLOCATION............................ 0.60% B $111.61 1
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.00% CLASS 2 $109.63 93
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.60% CLASS 2 $104.04 35
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.80% CLASS 2 $102.24 --
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.90% CLASS 2 $101.35 32
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $ 12.71 304
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $127.06 236
TEMPLETON GLOBAL BOND VIP FUND.................... 0.60% CLASS 2 $120.58 93
TEMPLETON GLOBAL BOND VIP FUND.................... 0.80% CLASS 2 $118.49 --
TEMPLETON GLOBAL BOND VIP FUND.................... 0.90% CLASS 2 $117.46 10
TEMPLETON GROWTH VIP FUND......................... 0.00% CLASS 2 $154.60 18
TEMPLETON GROWTH VIP FUND......................... 0.60% CLASS 2 $146.72 9
TEMPLETON GROWTH VIP FUND......................... 0.80% CLASS 2 $144.17 --
TEMPLETON GROWTH VIP FUND......................... 0.90% CLASS 2 $142.91 2
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.00% CLASS S $ 59.79 102
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.60% CLASS S $ 56.74 40
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.80% CLASS S $ 55.76 --
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.90% CLASS S $ 55.27 1
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX
PORTFOLIO........................................ 0.60% INVESTOR SHARE CLASS $271.11 48
|
The accompanying notes are an integral part of these financial statements.
* Contract charges reflect the annual mortality, expense risk, financial
accounting and other expenses related to the Variable Investment Options.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
***Variable Investment Options where Units Outstanding are less than 500 are
denoted by a --.
FSA-39
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC 1290 VT EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- -------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 29,525 $ 187,110 $ 17,594 $ 437,285 $ 235,744
Expenses:
Asset-based charges...................................... 2,294 3,877 266 43,938 38,148
--------- ----------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 27,231 183,233 17,328 393,347 197,596
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,812 74,977 (4,083) (151,687) (60,749)
Net realized gain distribution from the Portfolios....... 28,380 286,690 -- 5,900,263 431,910
--------- ----------- -------- ----------- -----------
Net realized gain (loss)................................... 30,192 361,667 (4,083) 5,748,576 371,161
--------- ----------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (131,330) (1,013,423) (14,411) (8,691,132) (1,393,740)
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (101,138) (651,756) (18,494) (2,942,556) (1,022,579)
--------- ----------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (73,907) $ (468,523) $ (1,166) $(2,549,209) $ (824,983)
========= =========== ======== =========== ===========
|
1290 VT GAMCO
SMALL COMPANY
VALUE*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,072,954
Expenses:
Asset-based charges...................................... 385,861
------------
NET INVESTMENT INCOME (LOSS)................................ 687,093
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 8,163,083
Net realized gain distribution from the Portfolios....... 8,697,766
------------
Net realized gain (loss)................................... 16,860,849
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (47,823,307)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (30,962,458)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(30,275,365)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-40
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R)/ /GLOBAL
1290 VT SMALL
SMARTBETA 1290 VT SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
--------- ---------------- -------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 16,542 $ 29,568 $ 582,071 $ 1,836
Expenses:
Asset-based charges...................................... 1,366 8,928 34,176 18,804
--------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 15,176 20,640 547,895 (16,968)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 19,022 69,388 273,364 (10,564)
Net realized gain distribution from the Portfolios....... 48,283 77,370 1,029,563 367,949
--------- --------- ----------- -----------
Net realized gain (loss)................................... 67,305 146,758 1,302,927 357,385
--------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (170,751) (310,402) (4,268,829) (1,368,473)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (103,446) (163,644) (2,965,902) (1,011,088)
--------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (88,270) $(143,004) $(2,418,007) $(1,028,056)
========= ========= =========== ===========
|
AMERICAN FUNDS
INSURANCE AXA 400
SERIES(R)/ /NEW MANAGED
WORLD FUND(R)// VOLATILITY*
--------------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 131,103 $ 48,767
Expenses:
Asset-based charges...................................... 31,103 14,831
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 100,000 33,936
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 378,720 114,935
Net realized gain distribution from the Portfolios....... 395,347 376,170
----------- -----------
Net realized gain (loss)................................... 774,067 491,105
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,640,473) (1,143,278)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (2,866,406) (652,173)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(2,766,406) $ (618,237)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-41
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA 500 AXA 2000 AXA
MANAGED MANAGED AXA AGGRESSIVE AXA BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- -------------- ------------ ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 125,442 $ 37,036 $ 2,405,923 $ 493,984 $ 427,441
Expenses:
Asset-based charges...................................... 21,218 10,545 259,494 -- 90,271
----------- ----------- ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 104,224 26,491 2,146,429 493,984 337,170
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 391,508 121,872 3,175,762 504,832 (134,573)
Net realized gain distribution from the Portfolios....... 248,666 297,800 8,449,143 840,116 668,840
----------- ----------- ------------ ----------- -----------
Net realized gain (loss)................................... 640,174 419,672 11,624,905 1,344,948 534,267
----------- ----------- ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,453,693) (1,047,416) (26,889,043) (3,504,352) (1,402,478)
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (813,519) (627,744) (15,264,138) (2,159,404) (868,211)
----------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (709,295) $ (601,253) $(13,117,709) $(1,665,420) $ (531,041)
=========== =========== ============ =========== ===========
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 90,726
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 90,726
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 93,339
Net realized gain distribution from the Portfolios....... 157,351
---------
Net realized gain (loss)................................... 250,690
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (584,510)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (333,820)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(243,094)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-42
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA GLOBAL AXA
AXA CONSERVATIVE- EQUITY INTERNATIONAL
CONSERVATIVE PLUS MANAGED AXA GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- ------------ ----------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 37,655 $ 469,764 $ 1,447,708 $ 758,543 $ 1,023,445
Expenses:
Asset-based charges...................................... -- 71,389 495,063 -- 157,039
--------- ----------- ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 37,655 398,375 952,645 758,543 866,406
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 15,262 56,560 4,868,477 1,376,410 699,419
Net realized gain distribution from the Portfolios....... 66,473 1,290,524 10,275,682 1,084,145 --
--------- ----------- ------------ ----------- ------------
Net realized gain (loss)................................... 81,735 1,347,084 15,144,159 2,460,555 699,419
--------- ----------- ------------ ----------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (157,944) (2,934,113) (33,462,490) (7,047,901) (10,752,214)
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (76,209) (1,587,029) (18,318,331) (4,587,346) (10,052,795)
--------- ----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (38,554) $(1,188,654) $(17,365,686) $(3,828,803) $ (9,186,389)
========= =========== ============ =========== ============
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 72,950
Expenses:
Asset-based charges...................................... 2,476
---------
NET INVESTMENT INCOME (LOSS)................................ 70,474
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 10,355
Net realized gain distribution from the Portfolios....... 11.613
---------
Net realized gain (loss)................................... 21,968
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (677,449)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (655,481)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,007)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-43
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA LARGE CAP
INTERNATIONAL AXA LARGE CAP GROWTH AXA LARGE CAP
VALUE MANAGED CORE MANAGED MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- ------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,363,308 $ 327,920 $ 1,344,033 $ 9,787,523
Expenses:
Asset-based charges...................................... 261,422 56,142 1,185,531 1,831,949
------------ ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,101,886 271,778 158,502 7,955,574
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,282,245 983,479 15,530,053 8,186,863
Net realized gain distribution from the Portfolios....... -- 2,511,011 23,239,699 18,387,738
------------ ----------- ------------ ------------
Net realized gain (loss)................................... 1,282,245 3,494,490 38,769,752 26,574,601
------------ ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (16,007,666) (5,705,806) (46,091,408) (74,400,199)
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (14,725,421) (2,211,316) (7,321,656) (47,825,598)
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(13,623,535) $(1,939,538) $ (7,163,154) $(39,870,024)
============ =========== ============ ============
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 2,456,713 $ 13,451,190
Expenses:
Asset-based charges...................................... 835,801 4,341,998
------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,620,912 9,109,192
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 11,499,282 4,755,417
Net realized gain distribution from the Portfolios....... 15,882,536 33,867,487
------------ ------------
Net realized gain (loss)................................... 27,381,818 38,622,904
------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (56,235,308) (92,345,560)
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (28,853,490) (53,722,656)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(27,232,578) $(44,613,464)
============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-44
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,379,316 $ 6,863,026 $ 270,405 $ 145,975 $ --
Expenses:
Asset-based charges...................................... -- 723,027 1,016,191 222,759 116,749
------------ ------------ ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,379,316 6,139,999 (745,786) (76,784) (116,749)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,355,344 9,900,405 6,278,018 699,421 1,447,958
Net realized gain distribution from the Portfolios....... 2,651,571 20,941,335 33,830,854 7,174,055 2,536,155
------------ ------------ ------------ ----------- -----------
Net realized gain (loss)................................... 4,006,915 30,841,740 40,108,872 7,873,476 3,984,113
------------ ------------ ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (11,167,077) (65,552,287) (55,823,981) (7,907,125) (4,449,201)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (7,160,162) (34,710,547) (15,715,109) (33,649) (465,088)
------------ ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (5,780,846) $(28,570,548) $(16,460,895) $ (110,433) $ (581,837)
============ ============ ============ =========== ===========
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 39,740
Expenses:
Asset-based charges...................................... 109,026
-----------
NET INVESTMENT INCOME (LOSS)................................ (69,286)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,177,833
Net realized gain distribution from the Portfolios....... 4,261,319
-----------
Net realized gain (loss)................................... 6,439,152
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (7,721,058)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,281,906)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,351,192)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-45
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM CHARTER/SM CHARTER/SM
ALLOCATION V.I. /MULTI-SECTOR /SMALL CAP /SMALL CAP
FUND BOND* GROWTH* VALUE*
--------------- ------------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 53,846 $ 1,553,951 $ 529,392 $ 350,744
Expenses:
Asset-based charges...................................... -- 304,802 21,736 71,746
--------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 53,846 1,249,149 507,656 278,998
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 40,350 (1,327,086) 1,143,444 1,842,779
Net realized gain distribution from the Portfolios....... 271,266 -- 1,120,510 427,470
--------- ----------- ----------- -----------
Net realized gain (loss)................................... 311,616 (1,327,086) 2,263,954 2,270,249
--------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (804,269) (634,315) (3,652,786) (6,029,386)
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (492,653) (1,961,401) (1,388,832) (3,759,137)
--------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(438,807) $ (712,252) $ (881,176) $(3,480,139)
========= =========== =========== ===========
|
CLEARBRIDGE EQ/AMERICAN
VARIABLE MID CENTURY MID
CAP PORTFOLIO CAP VALUE*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,261 $ 291,950
Expenses:
Asset-based charges...................................... -- 24,484
-------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,261 267,466
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (4,618) (60,301)
Net realized gain distribution from the Portfolios....... 12,037 --
-------- -----------
Net realized gain (loss)................................... 7,419 (60,301)
-------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (95,687) (5,859,557)
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (88,268) (5,919,858)
-------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(87,007) $(5,652,392)
======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-46
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND
EQUITY* RESEARCH* STOCK INDEX* INDEX*
------------ ------------ ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,329,797 $ 723,444 $ 22,034,286 $ 935,134
Expenses:
Asset-based charges...................................... 682,149 613,888 8,956,364 127,079
------------ ------------ ------------- ---------
NET INVESTMENT INCOME (LOSS)................................ 2,647,648 109,556 13,077,922 808,055
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,319,257 5,605,571 78,552,593 (233,740)
Net realized gain distribution from the Portfolios....... 17,059,664 14,449,279 79,838,711 --
------------ ------------ ------------- ---------
Net realized gain (loss)................................... 26,378,921 20,054,850 158,391,304 (233,740)
------------ ------------ ------------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (45,322,323) (26,127,363) (267,534,071) (607,788)
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (18,943,402) (6,072,513) (109,142,767) (841,528)
------------ ------------ ------------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(16,295,754) $ (5,962,957) $ (96,064,845) $ (33,473)
============ ============ ============= =========
|
EQ/FIDELITY
INSTITUTIONAL
EQ/EQUITY 500 AM/SM/ LARGE
INDEX* CAP*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,879,978 $ 245,558
Expenses:
Asset-based charges...................................... 2,916,205 75,695
------------- ------------
NET INVESTMENT INCOME (LOSS)................................ 9,963,773 169,863
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 43,760,656 (179,846)
Net realized gain distribution from the Portfolios....... 19,680,609 --
------------- ------------
Net realized gain (loss)................................... 63,441,265 (179,846)
------------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (117,357,501) (12,029,625)
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (53,916,236) (12,209,471)
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (43,952,463) $(12,039,608)
============= ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-47
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
RISING STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
DIVIDENDS*(A) INCOME*(A) BOND PLUS* VALUE*(A) BOND*
------------- ----------- ---------- ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 160,499 $ 237,239 $ 228,268 $ 19,719 $ 618,408
Expenses:
Asset-based charges...................................... 30,172 13,856 44,981 2,938 200,262
----------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS)................................ 130,327 223,383 183,287 16,781 418,146
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (17,469) (7,027) (250,669) (9,315) (586,240)
Net realized gain distribution from the Portfolios....... -- -- -- -- --
----------- --------- --------- --------- ---------
Net realized gain (loss)................................... (17,469) (7,027) (250,669) (9,315) (586,240)
----------- --------- --------- --------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,195,962) (654,159) (260,264) (849,455) 262,219
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,213,431) (661,186) (510,933) (858,770) (324,021)
----------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,083,104) $(437,803) $(327,646) $(841,989) $ 94,125
=========== ========= ========= ========= =========
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 7,619,059
Expenses:
Asset-based charges...................................... 1,390,069
------------
NET INVESTMENT INCOME (LOSS)................................ 6,228,990
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (3,015,502)
Net realized gain distribution from the Portfolios....... --
------------
Net realized gain (loss)................................... (3,015,502)
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (53,733,576)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (56,749,078)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(50,520,088)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-48
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL
COMSTOCK* ESTATE*(A) GROWTH*(A) EQ/IVY ENERGY*(A)
----------- ----------- ------------- -----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,142 $ 205,535 $ 69,985 $ 12,080
Expenses:
Asset-based charges...................................... 54,866 11,843 10,889 4,528
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 400,276 193,692 59,096 7,552
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 818,413 15,837 (34,887) (64,522)
Net realized gain distribution from the Portfolios....... 1,189,039 -- -- --
----------- --------- ----------- -----------
Net realized gain (loss)................................... 2,007,452 15,837 (34,887) (64,522)
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (6,065,466) (688,317) (1,744,827) (4,497,704)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,058,014) (672,480) (1,779,714) (4,562,226)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,657,738) $(478,788) $(1,720,618) $(4,554,674)
=========== ========= =========== ===========
|
EQ/IVY SCIENCE
EQ/IVY MID CAP AND
GROWTH*(A) TECHNOLOGY*(A)
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,296 $ --
Expenses:
Asset-based charges...................................... 15,652 12,806
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (12,356) (12,806)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (31,541) (173,400)
Net realized gain distribution from the Portfolios....... -- --
----------- -----------
Net realized gain (loss)................................... (31,541) (173,400)
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,192,880) (3,885,520)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (3,224,421) (4,058,920)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,236,777) $(4,071,726)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-49
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EMERGING EQ/MFS
VALUE EQ/LARGE CAP EQ/LARGE CAP MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* VALUE INDEX* EQUITY*(A) GROWTH*
-------------- ------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 516,934 $ 1,055,019 $ 560,588 $ 93,930 $ 456,893
Expenses:
Asset-based charges...................................... 184,030 701,405 77,527 16,961 114,652
------------ ------------ ----------- --------- ------------
NET INVESTMENT INCOME (LOSS)................................ 332,904 353,614 483,061 76,969 342,241
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,145,573 7,355,094 1,136,607 (5,780) 1,435,573
Net realized gain distribution from the Portfolios....... 3,983,139 10,055,518 1,108,532 -- 4,720,516
------------ ------------ ----------- --------- ------------
Net realized gain (loss)................................... 6,128,712 17,410,612 2,245,139 (5,780) 6,156,089
------------ ------------ ----------- --------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (14,604,905) (21,527,934) (5,163,413) (713,799) (11,400,219)
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (8,476,193) (4,117,322) (2,918,274) (719,579) (5,244,130)
------------ ------------ ----------- --------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (8,143,289) $ (3,763,708) $(2,435,213) $(642,610) $ (4,901,889)
============ ============ =========== ========= ============
|
EQ/MFS
INTERNATIONAL
VALUE*(A)
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... 43,338
-----------
NET INVESTMENT INCOME (LOSS)................................ (43,338)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (57,675)
Net realized gain distribution from the Portfolios....... --
-----------
Net realized gain (loss)................................... (57,675)
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,576,888)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,634,563)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,677,901)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-50
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/MFS UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL
SERIES*(A) INDEX* MARKET* RETURN*(A)
---------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,447 $ 1,681,758 $1,860,580 $110,699
Expenses:
Asset-based charges...................................... -- 441,150 567,381 8,314
-------- ------------ ---------- --------
NET INVESTMENT INCOME (LOSS)................................ 12,447 1,240,608 1,293,199 102,385
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (5,831) 6,941,067 3,973 (5,300)
Net realized gain distribution from the Portfolios....... -- 11,540,383 -- 40,199
-------- ------------ ---------- --------
Net realized gain (loss)................................... (5,831) 18,481,450 3,973 34,899
-------- ------------ ---------- --------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (89,090) (37,940,546) 3,115 (78,883)
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (94,921) (19,459,096) 7,088 (43,984)
-------- ------------ ---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(82,474) $(18,218,488) $1,300,287 $ 58,401
======== ============ ========== ========
|
EQ/PIMCO TOTAL EQ/PIMCO ULTRA
RETURN*(A) SHORT BOND*
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,989 $ 663,125
Expenses:
Asset-based charges...................................... 33,376 87,259
---------- ---------
NET INVESTMENT INCOME (LOSS)................................ 422,613 575,866
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 6,961 13,680
Net realized gain distribution from the Portfolios....... 231,763 --
---------- ---------
Net realized gain (loss)................................... 238,724 13,680
---------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. 410,518 (362,655)
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 649,242 (348,975)
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $1,071,855 $ 226,891
========== =========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-51
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES*(A) & INCOME*
---------- -------------- ------------ ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 719,770 $ 1,012,806 $ -- $ -- $ 46,880
Expenses:
Asset-based charges...................................... 179,042 231,124 356,872 -- 47,789
--------- ------------ ------------ --------- -----------
NET INVESTMENT INCOME (LOSS)................................ 540,728 781,682 (356,872) -- (909)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (305,373) 2,535,372 8,673,333 (29,755) 832,101
Net realized gain distribution from the Portfolios....... -- 8,785,368 9,680,978 -- 1,477,029
--------- ------------ ------------ --------- -----------
Net realized gain (loss)................................... (305,373) 11,320,740 18,354,311 (29,755) 2,309,130
--------- ------------ ------------ --------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (415,538) (23,894,445) (20,766,318) (823,342) (4,100,675)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (720,911) (12,573,705) (2,412,007) (853,097) (1,791,545)
--------- ------------ ------------ --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(180,183) $(11,792,023) $ (2,768,879) $(853,097) $(1,792,454)
========= ============ ============ ========= ===========
|
FIDELITY(R)/ /VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,177
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 15,177
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,091
Net realized gain distribution from the Portfolios....... 61,893
---------
Net realized gain (loss)................................... 126,984
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (225,936)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (98,952)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (83,775)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-52
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP GOVERNMENT GROWTH &
EQUITY-INCOME MONEY MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- ---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 36,513 $19,493 $ 19,243
Expenses:
Asset-based charges...................................... -- -- 18,081
--------- ------- -----------
NET INVESTMENT INCOME (LOSS)................................ 36,513 19,493 1,162
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 25,097 -- 235,127
Net realized gain distribution from the Portfolios....... 78,863 -- 584,857
--------- ------- -----------
Net realized gain (loss)................................... 103,960 -- 819,984
--------- ------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (283,361) -- (1,691,998)
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (179,401) -- (872,014)
--------- ------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(142,888) $19,493 $ (870,852)
========= ======= ===========
|
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP INVESTMENT
HIGH INCOME GRADE BOND FIDELITY(R)/ /VIP MID
PORTFOLIO PORTFOLIO CAP PORTFOLIO
--------------- --------------- -------------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 159,061 $ 854,287 $ 134,741
Expenses:
Asset-based charges...................................... -- -- 54,810
--------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 159,061 854,287 79,931
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (41,662) (236,661) 432,310
Net realized gain distribution from the Portfolios....... -- 228,433 2,788,495
--------- ----------- -----------
Net realized gain (loss)................................... (41,662) (8,228) 3,220,805
--------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (210,317) (1,053,399) (8,193,396)
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (251,979) (1,061,627) (4,972,591)
--------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (92,918) $ (207,340) $(4,892,660)
========= =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-53
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,276 $ 2,948 $ 221,315 $ 114,131
Expenses:
Asset-based charges...................................... -- -- 16,986 29,818
--------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,276 2,948 204,329 84,313
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,681 11,469 53,533 (76,742)
Net realized gain distribution from the Portfolios....... 60,807 20,800 344,615 1,943,686
--------- -------- ----------- -----------
Net realized gain (loss)................................... 70,488 32,269 398,148 1,866,944
--------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (287,144) (93,356) (1,447,043) (3,604,606)
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (216,656) (61,087) (1,048,895) (1,737,662)
--------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(204,380) $(58,139) $ (844,566) $(1,653,349)
========= ======== =========== ===========
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 329,880 $ 4,983
Expenses:
Asset-based charges...................................... -- 9,076
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 329,880 (4,093)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 77,751 (78,273)
Net realized gain distribution from the Portfolios....... 529,295 638,281
----------- -----------
Net realized gain (loss)................................... 607,046 560,008
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (2,082,480) (1,054,884)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,475,434) (494,876)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,145,554) $ (498,969)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-54
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ -- $ 15,245 $ 2,175,033 $ 52,406
Expenses:
Asset-based charges...................................... 9,777 -- 50,806 33,637
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (9,777) 15,245 2,124,227 18,769
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (75,353) (32,541) (123,106) 60,209
Net realized gain distribution from the Portfolios....... 412,203 71,641 -- 4,646,383
----------- --------- ----------- -----------
Net realized gain (loss)................................... 336,850 39,100 (123,106) 4,706,592
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,213,467) (150,013) (2,884,856) (5,322,774)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (876,617) (110,913) (3,007,962) (616,182)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (886,394) $ (95,668) $ (883,735) $ (597,413)
=========== ========= =========== ===========
|
MFS(R)/
/MASSACHUSETTS
INVESTORS
MFS(R)/ /INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,740 $ 16,035
Expenses:
Asset-based charges...................................... 9,167 11,865
--------- ---------
NET INVESTMENT INCOME (LOSS)................................ 6,573 4,170
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 113,500 123,198
Net realized gain distribution from the Portfolios....... 158,522 283,372
--------- ---------
Net realized gain (loss)................................... 272,022 406,570
--------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (453,820) (499,761)
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (181,798) (93,191)
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(175,225) $ (89,021)
========= =========
|
The accompanying notes are an integral part of these financial statements.
FSA-55
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 625,360 $ 1,667,611 $ -- $ 298,366 $ 224,598
Expenses:
Asset-based charges...................................... 2,595,708 153,977 83,947 158,560 561,514
------------ ----------- ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ (1,970,348) 1,513,634 (83,947) 139,806 (336,916)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 29,213,533 (703,201) 252,048 1,859,817 14,706,489
Net realized gain distribution from the Portfolios....... 47,304,632 -- 4,056,202 3,122,309 15,819,891
------------ ----------- ----------- ------------ ------------
Net realized gain (loss)................................... 76,518,165 (703,201) 4,308,250 4,982,126 30,526,380
------------ ----------- ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (75,548,437) (1,264,909) (5,865,470) (10,194,593) (27,829,523)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 969,728 (1,968,110) (1,557,220) (5,212,467) 2,696,857
------------ ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (1,000,620) $ (454,476) $(1,641,167) $ (5,072,661) $ 2,359,941
============ =========== =========== ============ ============
|
NATURAL
RESOURCES
PORTFOLIO
---------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ --
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (32,443)
Net realized gain distribution from the Portfolios....... --
---------
Net realized gain (loss)................................... (32,443)
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (553,290)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (585,733)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,733)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-56
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R)/ T. ROWE PRICE
/STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 210,249 $ 249,839 $ 30,674 $ 159,556 $ 77,113
Expenses:
Asset-based charges...................................... 17,057 36,040 -- 18,915 7,241
----------- ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS)................................ 193,192 213,799 30,674 140,641 69,872
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (927,692) 162,536 39,836 133,812 131,610
Net realized gain distribution from the Portfolios....... -- 1,295,193 129,786 218,179 59,052
----------- ----------- --------- ----------- ---------
Net realized gain (loss)................................... (927,692) 1,457,729 169,622 351,991 190,662
----------- ----------- --------- ----------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (846,643) (3,057,011) (272,000) (1,093,575) (656,629)
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,774,335) (1,599,282) (102,378) (741,584) (465,967)
----------- ----------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,581,143) $(1,385,483) $ (71,704) $ (600,943) $(396,095)
=========== =========== ========= =========== =========
|
TARGET 2045
ALLOCATION*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 45,032
Expenses:
Asset-based charges...................................... 1,282
---------
NET INVESTMENT INCOME (LOSS)................................ 43,750
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,222
Net realized gain distribution from the Portfolios....... 28,896
---------
Net realized gain (loss)................................... 94,118
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (386,721)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (292,603)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(248,853)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-57
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS VIP GLOBAL BOND GROWTH VIP GLOBAL HARD
ALLOCATION* FUND VIP FUND FUND ASSETS FUND
----------- ----------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 13,103 $ 138,307 $ -- $ 99,174 $ --
Expenses:
Asset-based charges...................................... 640 45,365 81,519 12,510 21,206
--------- ----------- ---------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,463 92,942 (81,519) 86,664 (21,206)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 42,868 479,829 (788,411) (57) (328,197)
Net realized gain distribution from the Portfolios....... -- -- -- 420,018 --
--------- ----------- ---------- ----------- -----------
Net realized gain (loss)................................... 42,868 479,829 (788,411) 419,961 (328,197)
--------- ----------- ---------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (133,277) (3,670,319) 1,674,585 (1,279,590) (3,047,878)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (90,409) (3,190,490) 886,174 (859,629) (3,376,075)
--------- ----------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (77,946) $(3,097,548) $ 804,655 $ (772,965) $(3,397,281)
========= =========== ========== =========== ===========
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 176,397
Expenses:
Asset-based charges...................................... 68,389
-----------
NET INVESTMENT INCOME (LOSS)................................ 108,008
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 666,497
Net realized gain distribution from the Portfolios....... 171,706
-----------
Net realized gain (loss)................................... 838,203
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,940,874)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,102,671)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (994,663)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-58
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT DOUBLELINE
1290 VT CONVERTIBLE 1290 VT DOUBLELINE OPPORTUNISTIC
SECURITIES* DYNAMIC ALLOCATION* BOND*(A)
-------------------- ------------------------ ------------------
2018 2017 2018 2017 2018 2017
---------- -------- ----------- ----------- -------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 27,231 $ 14,184 $ 183,233 $ 63,423 $ 17,328 $ 3,325
Net realized gain (loss)............... 30,192 15,721 361,667 612,239 (4,083) 141
Net change in unrealized appreciation
(depreciation) of investments........ (131,330) (19,816) (1,013,423) 314,599 (14,411) (2,459)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from operations............ (73,907) 10,089 (468,523) 990,261 (1,166) 1,007
---------- -------- ----------- ----------- -------- --------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 160,701 22,985 1,618,739 2,164,531 180,941 13,745
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 571,644 571,621 (1,614,365) 479,653 261,054 187,672
Redemptions for contract benefits and
terminations......................... (12,604) -- (292,789) (42,259) (13,392) --
Contract maintenance charges........... (46,131) (8,900) (796,144) (776,878) (20,634) (2,463)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 673,610 585,706 (1,084,559) 1,825,047 407,969 198,954
---------- -------- ----------- ----------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS... 599,703 595,795 (1,553,082) 2,815,308 406,803 199,961
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 604,521 8,726 12,307,449 9,492,141 199,961 --
---------- -------- ----------- ----------- -------- --------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,204,224 $604,521 $10,754,367 $12,307,449 $606,764 $199,961
========== ======== =========== =========== ======== ========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on May 19, 2017.
FSA-59
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT GAMCO MERGERS 1290 VT GAMCO SMALL
1290 VT EQUITY INCOME* & ACQUISITIONS* COMPANY VALUE*
------------------------ ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 393,347 $ 312,075 $ 197,596 $ (9,548) $ 687,093 $ 748,534
Net realized gain (loss)............... 5,748,576 1,603,780 371,161 892,978 16,860,849 20,994,949
Net change in unrealized appreciation
(depreciation) of investments........ (8,691,132) 1,166,705 (1,393,740) 3,765 (47,823,307) 5,308,912
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (2,549,209) 3,082,560 (824,983) 887,195 (30,275,365) 27,052,395
----------- ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,194,996 1,314,128 1,072,925 1,446,603 15,161,328 14,715,495
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (566,175) (409,866) (307,865) (163,664) (7,030,458) (5,116,218)
Redemptions for contract benefits and
terminations......................... (724,484) (647,739) (597,580) (370,720) (6,704,170) (5,818,950)
Contract maintenance charges........... (720,085) (728,372) (444,420) (462,204) (5,986,014) (5,980,113)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (815,748) (471,849) (276,940) 450,015 (4,559,314) (2,199,786)
----------- ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,364,957) 2,610,711 (1,101,923) 1,337,210 (34,834,679) 24,852,609
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 22,651,270 20,040,559 16,191,996 14,854,786 197,726,749 172,874,140
----------- ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $19,286,313 $22,651,270 $15,090,073 $16,191,996 $162,892,070 $197,726,749
=========== =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-60
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT SMARTBETA 1290 VT SOCIALLY ALL ASSET
EQUITY* RESPONSIBLE* GROWTH-ALT 20*(B)
-------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- -------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 15,176 $ 6,663 $ 20,640 $ 22,629 $ 547,895 $ 370,223
Net realized gain (loss)............... 67,305 22,537 146,758 601,202 1,302,927 834,875
Net change in unrealized appreciation
(depreciation) of investments........ (170,751) 44,110 (310,402) (28,706) (4,268,829) 2,422,878
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (88,270) 73,310 (143,004) 595,125 (2,418,007) 3,627,976
---------- -------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 264,152 76,181 171,215 204,225 3,787,678 4,217,718
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 569,089 296,031 (577,063) 235,718 1,765,694 3,884,575
Redemptions for contract benefits and
terminations......................... (16,795) (7,598) (75,358) (54,567) (656,921) (1,123,996)
Contract maintenance charges........... (53,674) (20,971) (96,397) (99,583) (1,541,110) (1,370,437)
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 762,772 343,643 (577,603) 285,793 3,355,341 5,607,860
---------- -------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 674,502 416,953 (720,607) 880,918 937,334 9,235,836
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 598,100 181,147 3,521,671 2,640,753 28,928,635 19,692,799
---------- -------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,272,602 $598,100 $2,801,064 $3,521,671 $29,865,969 $28,928,635
========== ======== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(b)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a merger
on May 19, 2017.
FSA-61
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AMERICAN FUNDS
INSURANCE SERIES(R)/ AMERICAN FUNDS
/GLOBAL SMALL INSURANCE SERIES(R)/ /NEW AXA 400 MANAGED
CAPITALIZATION FUND/SM/ WORLD FUND(R)// VOLATILITY*
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (16,968) $ 11,123 $ 100,000 $ 72,376 $ 33,936 $ 24,791
Net realized gain (loss)............... 357,385 (177,465) 774,067 41,899 491,105 525,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,368,473) 1,384,139 (3,640,473) 2,374,832 (1,143,278) 136,239
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,028,056) 1,217,797 (2,766,406) 2,489,107 (618,237) 686,901
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,177,179 864,377 2,404,063 1,605,340 327,447 386,328
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,104,726 1,467,288 7,519,379 1,208,476 (348,264) 390,864
Redemptions for contract benefits and
terminations......................... (117,695) (113,887) (270,596) (76,397) (173,226) (97,331)
Contract maintenance charges........... (225,161) (186,450) (484,873) (374,039) (195,259) (199,662)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,939,049 2,031,328 9,167,973 2,363,380 (389,302) 480,199
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 910 -- -- --
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 910,993 3,249,125 6,402,477 4,852,487 (1,007,539) 1,167,100
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,356,444 4,107,319 12,710,631 7,858,144 5,412,820 4,245,720
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 8,267,437 $7,356,444 $19,113,108 $12,710,631 $ 4,405,281 $5,412,820
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-62
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA 500 MANAGED AXA 2000 MANAGED AXA AGGRESSIVE
VOLATILITY* VOLATILITY* ALLOCATION*
----------------------- ----------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ---------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 104,224 $ 78,318 $ 26,491 $ 20,351 $ 2,146,429 $ 1,959,042
Net realized gain (loss)............... 640,174 386,416 419,672 327,501 11,624,905 7,663,915
Net change in unrealized appreciation
(depreciation) of investments........ (1,453,693) 1,023,722 (1,047,416) 146,767 (26,889,043) 15,671,433
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (709,295) 1,488,456 (601,253) 494,619 (13,117,709) 25,294,390
----------- ---------- ----------- ---------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 704,550 1,030,494 299,478 396,055 9,232,836 9,347,431
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,261,153 983,229 337,946 544,488 (2,859,522) (2,743,640)
Redemptions for contract benefits and
terminations......................... (315,049) (256,066) (206,659) (90,180) (8,497,264) (6,733,933)
Contract maintenance charges........... (459,300) (390,590) (172,686) (154,578) (5,137,752) (5,688,391)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,191,354 1,367,067 258,079 695,785 (7,261,702) (5,818,533)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 354 -- (8) -- 31,622 (31,623)
----------- ---------- ----------- ---------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 482,413 2,855,523 (343,182) 1,190,404 (20,347,789) 19,444,234
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 9,742,564 6,887,041 4,479,768 3,289,364 156,317,862 136,873,628
----------- ---------- ----------- ---------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,224,977 $9,742,564 $ 4,136,586 $4,479,768 $135,970,073 $156,317,862
=========== ========== =========== ========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-63
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE
AXA BALANCED STRATEGY* ALLOCATION* GROWTH STRATEGY*
------------------------ ------------------------ ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 493,984 $ 453,939 $ 337,170 $ 223,213 $ 90,726 $ 88,733
Net realized gain (loss)............... 1,344,948 611,887 534,267 639,878 250,690 166,986
Net change in unrealized appreciation
(depreciation) of investments........ (3,504,352) 1,889,026 (1,402,478) 510,514 (584,510) 270,462
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,665,420) 2,954,852 (531,041) 1,373,605 (243,094) 526,181
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 5,722,032 6,324,025 1,853,567 2,307,432 969,701 1,206,742
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,350,703 2,576,437 180,112 (2,239,253) (42,515) 476,425
Redemptions for contract benefits and
terminations......................... (669,939) (409,625) (952,724) (2,283,420) (409,905) (331,042)
Contract maintenance charges........... (2,956,446) (2,677,758) (1,978,918) (2,122,093) (631,149) (601,525)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 3,446,350 5,813,079 (897,963) (4,337,334) (113,868) 750,600
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,780,930 8,767,931 (1,429,004) (2,963,729) (356,962) 1,276,781
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 36,594,273 27,826,342 28,625,473 31,589,202 7,439,026 6,162,245
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $38,375,203 $36,594,273 $27,196,469 $28,625,473 $7,082,064 $7,439,026
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-64
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE-PLUS AXA GLOBAL EQUITY
STRATEGY* ALLOCATION* MANAGED VOLATILITY*
---------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 37,655 $ 27,652 $ 398,375 $ 309,086 $ 952,645 $ 1,015,237
Net realized gain (loss)............... 81,735 60,286 1,347,084 1,183,492 15,144,159 4,468,932
Net change in unrealized appreciation
(depreciation) of investments........ (157,944) 25,697 (2,934,113) 1,119,606 (33,462,490) 26,555,167
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (38,554) 113,635 (1,188,654) 2,612,184 (17,365,686) 32,039,336
---------- ---------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 495,395 456,114 3,211,215 3,410,318 6,390,644 6,738,265
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 210,171 (355,590) (1,159,436) (207,373) (4,868,804) (6,578,272)
Redemptions for contract benefits and
terminations......................... (86,549) (100,328) (1,620,440) (2,659,574) (7,189,203) (8,091,897)
Contract maintenance charges........... (267,787) (263,328) (2,171,492) (2,465,048) (5,416,338) (5,858,570)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 351,230 (263,132) (1,740,153) (1,921,677) (11,083,701) (13,790,474)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 74,999 -- --
---------- ---------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 312,676 (149,497) (2,928,807) 765,506 (28,449,387) 18,248,862
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 2,655,938 2,805,435 32,671,100 31,905,594 148,578,047 130,329,185
---------- ---------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,968,614 $2,655,938 $29,742,293 $32,671,100 $120,128,660 $148,578,047
========== ========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-65
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL CORE AXA INTERNATIONAL
AXA GROWTH STRATEGY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------ ------------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ------------ ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 758,543 $ 882,830 $ 866,406 $ 824,176 $ 70,474 $ 62,830
Net realized gain (loss)............... 2,460,555 971,201 699,419 786,097 21,968 36,065
Net change in unrealized appreciation
(depreciation) of investments........ (7,047,901) 5,354,237 (10,752,214) 12,137,220 (677,449) 503,911
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (3,828,803) 7,208,268 (9,186,389) 13,747,493 (585,007) 602,806
----------- ----------- ------------ ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 9,139,233 10,223,898 2,630,704 2,991,332 224,444 322,549
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (2,947,979) (625,154) (543,969) (6,727,082) 508,221 435,035
Redemptions for contract benefits and
terminations......................... (2,012,292) (1,160,377) (2,653,774) (2,644,300) (69,986) (83,371)
Contract maintenance charges........... (3,886,988) (3,772,921) (2,282,766) (2,463,324) (119,948) (105,347)
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 291,974 4,665,446 (2,849,805) (8,843,374) 542,731 568,866
----------- ----------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (3,536,829) 11,873,714 (12,036,194) 4,904,119 (42,276) 1,171,672
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 62,041,063 50,167,349 63,328,101 58,423,982 3,557,737 2,386,065
----------- ----------- ------------ ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $58,504,234 $62,041,063 $ 51,291,907 $63,328,101 $3,515,461 $3,557,737
=========== =========== ============ =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-66
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL VALUE AXA LARGE CAP CORE AXA LARGE CAP GROWTH
MANAGED VOLATILITY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,101,886 $ 1,270,298 $ 271,778 $ 240,962 $ 158,502 $ 166,666
Net realized gain (loss)............... 1,282,245 869,487 3,494,490 3,065,377 38,769,752 33,443,063
Net change in unrealized appreciation
(depreciation) of investments........ (16,007,666) 14,475,642 (5,705,806) 2,433,165 (46,091,408) 30,503,643
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (13,623,535) 16,615,427 (1,939,538) 5,739,504 (7,163,154) 64,113,372
------------ ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,180,386 4,590,922 978,432 1,068,994 10,055,390 11,169,949
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,272,580) (2,152,559) (208,000) (696,150) (11,713,353) (8,156,800)
Redemptions for contract benefits and
terminations......................... (3,601,571) (4,754,791) (1,083,924) (1,019,355) (12,890,265) (13,253,721)
Contract maintenance charges........... (3,769,617) (4,025,456) (1,144,548) (1,139,899) (10,140,614) (10,719,628)
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,463,382) (6,341,884) (1,458,040) (1,786,410) (24,688,842) (20,960,200)
------------ ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (18,086,917) 10,273,543 (3,397,578) 3,953,094 (31,851,996) 43,153,172
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 85,043,394 74,769,851 31,158,744 27,205,650 275,604,577 232,451,405
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 66,956,477 $85,043,394 $27,761,166 $31,158,744 $243,752,581 $275,604,577
============ =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-67
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA LARGE CAP VALUE AXA MID CAP VALUE AXA MODERATE
MANAGED VOLATILITY* MANAGED VOLATILITY* ALLOCATION*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,955,574 $ 4,232,495 $ 1,620,912 $ 1,330,515 $ 9,109,192 $ 6,420,178
Net realized gain (loss)............... 26,574,601 7,411,354 27,381,818 24,257,383 38,622,904 33,549,894
Net change in unrealized appreciation
(depreciation) of investments........ (74,400,199) 38,606,026 (56,235,308) (1,880,050) (92,345,560) 48,787,704
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (39,870,024) 50,249,875 (27,232,578) 23,707,848 (44,613,464) 88,757,776
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 17,820,235 18,993,249 8,499,182 8,907,612 48,453,618 51,984,557
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (12,015,972) (8,782,703) (7,977,746) (5,021,819) (7,590,887) (23,439,763)
Redemptions for contract benefits and
terminations......................... (18,775,561) (19,995,812) (9,944,141) (10,991,520) (33,236,093) (36,616,401)
Contract maintenance charges........... (18,979,468) (19,831,032) (8,457,814) (8,824,427) (57,722,064) (59,886,427)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (31,950,766) (29,616,298) (17,880,519) (15,930,154) (50,095,426) (67,958,034)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- -- 43,284
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (71,820,790) 20,633,577 (45,113,097) 7,777,694 (94,708,890) 20,843,026
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 415,729,366 395,095,789 216,266,018 208,488,324 897,135,849 876,292,823
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $343,908,576 $415,729,366 $171,152,921 $216,266,018 $802,426,959 $897,135,849
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-68
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA MODERATE GROWTH AXA MODERATE-PLUS AXA/AB SMALL CAP
STRATEGY* ALLOCATION* GROWTH*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,379,316 $ 1,470,661 $ 6,139,999 $ 5,326,290 $ (745,786) $ (394,694)
Net realized gain (loss)............... 4,006,915 3,074,565 30,841,740 24,484,759 40,108,872 22,599,062
Net change in unrealized appreciation
(depreciation) of investments........ (11,167,077) 7,055,940 (65,552,287) 30,250,450 (55,823,981) 18,348,882
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (5,780,846) 11,601,166 (28,570,548) 60,061,499 (16,460,895) 40,553,250
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 15,292,605 16,955,106 28,814,143 30,922,625 7,770,341 7,554,131
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,508,652) (5,235,210) (23,487,019) (13,791,870) (3,547,190) (11,355,574)
Redemptions for contract benefits and
terminations......................... (2,887,590) (2,442,421) (23,056,449) (20,035,880) (8,433,628) (9,198,838)
Contract maintenance charges........... (7,989,391) (7,871,256) (19,014,366) (20,671,747) (6,816,779) (6,819,518)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,906,972 1,406,219 (36,743,691) (23,576,872) (11,027,256) (19,819,799)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,873,874) 13,007,385 (65,314,239) 36,484,627 (27,488,151) 20,733,451
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 109,617,357 96,609,972 457,491,988 421,007,361 213,951,192 193,217,741
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $106,743,483 $109,617,357 $392,177,749 $457,491,988 $186,463,041 $213,951,192
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-69
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA/CLEARBRIDGE LARGE AXA/LOOMIS SAYLES
CAP GROWTH* AXA/JANUS ENTERPRISE* GROWTH*
------------------------ ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (76,784) $ (142,588) $ (116,749) $ (103,805) $ (69,286) $ (28,722)
Net realized gain (loss)............... 7,873,476 9,128,760 3,984,113 4,984,733 6,439,152 1,373,698
Net change in unrealized appreciation
(depreciation) of investments........ (7,907,125) 7,953,886 (4,449,201) 5,224,000 (7,721,058) 8,459,226
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (110,433) 16,940,058 (581,837) 10,104,928 (1,351,192) 9,804,202
----------- ----------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,042,384 4,838,423 2,775,034 2,965,131 2,659,075 2,117,673
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (4,126,669) (8,298,014) (2,905,338) (1,612,821) 1,357,524 758,988
Redemptions for contract benefits and
terminations......................... (2,242,373) (2,792,529) (2,088,937) (1,517,523) (1,491,722) (854,075)
Contract maintenance charges........... (2,334,528) (2,396,070) (1,676,654) (1,712,287) (1,291,330) (1,067,048)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,661,186) (8,648,190) (3,895,895) (1,877,500) 1,233,547 955,538
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,771,619) 8,291,868 (4,477,732) 8,227,428 (117,645) 10,759,740
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 81,456,070 73,164,202 46,091,787 37,864,359 39,744,004 28,984,264
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $76,684,451 $81,456,070 $41,614,055 $46,091,787 $39,626,359 $39,744,004
=========== =========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-70
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
BLACKROCK GLOBAL CHARTER/SM/ MULTI- CHARTER/SM/ SMALL
ALLOCATION V.I. FUND SECTOR BOND* CAP GROWTH*
---------------------- ------------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 53,846 $ 54,567 $ 1,249,149 $ 856,131 $ 507,656 $ 298,879
Net realized gain (loss)............... 311,616 72,722 (1,327,086) (1,408,166) 2,263,954 781,569
Net change in unrealized appreciation
(depreciation) of investments........ (804,269) 397,048 (634,315) 1,923,410 (3,652,786) 1,438,055
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (438,807) 524,337 (712,252) 1,371,375 (881,176) 2,518,503
---------- ---------- ----------- ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 481,232 666,077 4,892,769 5,422,140 745,190 726,971
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,403,376 (983,013) (1,130,588) (7,559,971) 582,556 372,115
Redemptions for contract benefits and
terminations......................... (184,411) (299,739) (3,587,873) (3,686,081) (472,432) (773,700)
Contract maintenance charges........... (95,630) (84,536) (4,978,093) (5,304,390) (516,851) (495,505)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,604,567 (701,211) (4,803,785) (11,128,302) 338,463 (170,119)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 2,264 -- --
---------- ---------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,165,760 (176,874) (5,516,037) (9,754,663) (542,713) 2,348,384
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,270,952 4,447,826 73,525,448 83,280,111 13,056,619 10,708,235
---------- ---------- ----------- ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $5,436,712 $4,270,952 $68,009,411 $ 73,525,448 $12,513,906 $13,056,619
========== ========== =========== ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-71
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/AMERICAN
CHARTER/SM/ SMALL CAP CLEARBRIDGE VARIABLE CENTURY MID CAP
VALUE* MID CAP PORTFOLIO VALUE*(C )(D)
------------------------ ------------------ ---------------
2018 2017 2018 2017 2018
----------- ----------- -------- -------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 278,998 $ 362,282 $ 1,261 $ 428 $ 267,466
Net realized gain (loss)............... 2,270,249 1,520,462 7,419 13,485 (60,301)
Net change in unrealized appreciation
(depreciation) of investments........ (6,029,386) 1,285,931 (95,687) (2,667) (5,859,557)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,480,139) 3,168,675 (87,007) 11,246 (5,652,392)
----------- ----------- -------- -------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,498,465 1,641,842 364,928 172,104 1,053,158
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,819,898) (1,085,607) 55,149 133,523 53,146,253
Redemptions for contract benefits and
terminations......................... (1,354,284) (1,373,728) -- -- (141,713)
Contract maintenance charges........... (1,381,571) (1,438,532) (30,114) (7,634) (293,100)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,057,288) (2,256,025) 389,963 297,993 53,764,598
----------- ----------- -------- -------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 533 -- --
----------- ----------- -------- -------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,537,427) 912,650 303,489 309,239 48,112,206
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 31,000,265 30,087,615 314,328 5,089 --
----------- ----------- -------- -------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $24,462,838 $31,000,265 $617,817 $314,328 $48,112,206
=========== =========== ======== ======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(d)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap Value
Fund due to a substitution on October 22, 2018.
FSA-72
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/BLACKROCK BASIC EQ/CAPITAL GUARDIAN
VALUE EQUITY* RESEARCH* EQ/COMMON STOCK INDEX*
-------------------------- -------------------------- ------------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 2,647,648 $ 2,192,247 $ 109,556 $ 358,262 $ 13,077,922 $ 12,641,999
Net realized gain (loss)............... 26,378,921 9,091,685 20,054,850 12,725,252 158,391,304 64,211,978
Net change in unrealized appreciation
(depreciation) of investments........ (45,322,323) 4,122,849 (26,127,363) 12,658,249 (267,534,071) 218,283,989
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from operations............ (16,295,754) 15,406,781 (5,962,957) 25,741,763 (96,064,845) 295,137,966
------------ ------------ ------------ ------------ -------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 12,943,153 13,455,602 4,221,681 4,622,061 68,264,259 70,697,299
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (10,529,958) (10,911,779) (3,197,203) (1,570,219) (69,133,046) (51,553,674)
Redemptions for contract benefits and
terminations......................... (7,545,269) (8,952,305) (4,034,801) (5,124,897) (67,662,814) (69,911,005)
Contract maintenance charges........... (7,884,412) (8,332,179) (4,214,631) (4,304,592) (74,802,593) (78,128,183)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (13,016,486) (14,740,661) (7,224,954) (6,377,647) (143,334,194) (128,895,563)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 125,100 22,027
------------ ------------ ------------ ------------ -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS... (29,312,240) 666,120 (13,187,911) 19,364,116 (239,273,939) 166,264,430
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 212,634,157 211,968,037 125,446,171 106,082,055 1,724,896,214 1,558,631,784
------------ ------------ ------------ ------------ -------------- --------------
NET ASSETS -- END OF YEAR OR PERIOD..... $183,321,917 $212,634,157 $112,258,260 $125,446,171 $1,485,622,275 $1,724,896,214
============ ============ ============ ============ ============== ==============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-73
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FIDELITY
INSTITUTIONAL AM/SM/
EQ/CORE BOND INDEX* EQ/EQUITY 500 INDEX* LARGE CAP*(C)(E)
------------------------ --------------------------- -------------------
2018 2017 2018 2017 2018
----------- ----------- ------------- ------------ -------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 808,055 $ 652,831 $ 9,963,773 $ 9,069,228 $ 169,863
Net realized gain (loss)............... (233,740) (105,358) 63,441,265 49,687,094 (179,846)
Net change in unrealized appreciation
(depreciation) of investments........ (607,788) 185,629 (117,357,501) 94,757,414 (12,029,625)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (33,473) 733,102 (43,952,463) 153,513,736 (12,039,608)
----------- ----------- ------------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,663,771 4,503,364 43,792,516 48,204,371 1,186,694
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (426,574) 360,121 (16,216,520) (20,196,036) 105,252,102
Redemptions for contract benefits and
terminations......................... (3,053,763) (2,464,337) (27,225,302) (36,962,210) (321,496)
Contract maintenance charges........... (2,329,332) (4,247,393) (29,645,392) (29,844,695) (349,357)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,145,898) (1,848,245) (29,294,698) (38,798,570) 105,767,943
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 11 491 --
----------- ----------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,179,371) (1,115,143) (73,247,150) 114,715,657 93,728,335
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 51,768,753 52,883,896 875,865,963 761,150,306 --
----------- ----------- ------------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $49,589,382 $51,768,753 $ 802,618,813 $875,865,963 $ 93,728,335
=========== =========== ============= ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(e)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
FSA-74
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FRANKLIN RISING EQ/FRANKLIN
DIVIDENDS*(C)(F) STRATEGIC INCOME*(C)(G) EQ/GLOBAL BOND PLUS*
------------------ ----------------------- ------------------------
2018 2018 2018 2017
------------------ ----------------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................... $ 130,327 $ 223,383 $ 183,287 $ (38,198)
Net realized gain (loss)....................... (17,469) (7,027) (250,669) (373,414)
Net change in unrealized appreciation
(depreciation) of investments................ (4,195,962) (654,159) (260,264) 1,147,392
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.................... (4,083,104) (437,803) (327,646) 735,780
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.......... 812,067 646,523 1,231,412 1,309,930
Transfers between Variable Investment Options
including guaranteed interest account, net... 56,189,605 33,520,994 355,189 182,494
Redemptions for contract benefits and
terminations................................. (399,664) (106,474) (877,497) (1,291,439)
Contract maintenance charges................... (411,020) (310,472) (828,842) (910,448)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners transactions... 56,190,988 33,750,571 (119,738) (709,463)
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP......... 1,361 185,604 -- --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS........... 52,109,245 33,498,372 (447,384) 26,317
NET ASSETS -- BEGINNING OF YEAR OR PERIOD....... -- -- 17,085,302 17,058,985
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............. $52,109,245 $33,498,372 $16,637,918 $17,085,302
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(f)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund due
to a substitution on October 22, 2018.
(g)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund due
to a substitution on October 22, 2018.
FSA-75
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/GOLDMAN SACHS MID EQ/INTERMEDIATE EQ/INTERNATIONAL
CAP VALUE*(C)(H) GOVERNMENT BOND* EQUITY INDEX*
-------------------- ------------------------- --------------------------
2018 2018 2017 2018 2017
-------------------- ------------ ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................ $ 16,781 $ 418,146 $ 539,142 $ 6,228,990 $ 6,903,116
Net realized gain (loss).................... (9,315) (586,240) 278,982 (3,015,502) (5,487,166)
Net change in unrealized appreciation
(depreciation) of investments............. (849,455) 262,219 (714,718) (53,733,576) 62,115,735
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations................. (841,989) 94,125 103,406 (50,520,088) 63,531,685
---------- ------------ ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners....... 134,893 4,221,238 4,539,850 19,479,370 25,286,472
Transfers between Variable Investment
Options including guaranteed interest
account, net.............................. 9,284,016 (38,572,276) 3,310,355 (2,665,872) 6,872,058
Redemptions for contract benefits and
terminations.............................. (12,619) (2,537,688) (5,884,857) (12,255,673) (16,662,776)
Contract maintenance charges................ (68,241) (3,969,469) (4,309,219) (16,133,725) (17,153,586)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners transactions 9,338,049 (40,858,195) (2,343,871) (11,575,900) (1,657,832)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in amount retained
by AXA Equitable in Separate Account FP... -- -- 250 -- --
---------- ------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS........ 8,496,060 (40,764,070) (2,240,215) (62,095,988) 61,873,853
NET ASSETS -- BEGINNING OF YEAR OR PERIOD.... -- 88,991,778 91,231,993 334,523,584 272,649,731
---------- ------------ ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD.......... $8,496,060 $ 48,227,708 $88,991,778 $272,427,596 $334,523,584
========== ============ =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(h)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value Fund
due to a substitution on October 22, 2018.
FSA-76
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/INVESCO
EQ/INVESCO GLOBAL INTERNATIONAL
EQ/INVESCO COMSTOCK* REAL ESTATE*(C)(I) GROWTH*(C)(J)
------------------------ ------------------ -------------
2018 2017 2018 2018
----------- ----------- ------------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 400,276 $ 163,404 $ 193,692 $ 59,096
Net realized gain (loss)............... 2,007,452 698,834 15,837 (34,887)
Net change in unrealized appreciation
(depreciation) of investments........ (6,065,466) 3,616,119 (688,317) (1,744,827)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,657,738) 4,478,357 (478,788) (1,720,618)
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,437,416 1,730,186 884,036 962,453
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (142,921) 1,456,913 36,321,954 33,174,169
Redemptions for contract benefits and
terminations......................... (919,146) (779,354) (133,379) (123,391)
Contract maintenance charges........... (830,185) (849,883) (244,570) (177,322)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (454,836) 1,557,862 36,828,041 33,835,909
----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 16,845 --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,112,574) 6,036,219 36,366,098 32,115,291
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 29,713,101 23,676,882 -- --
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $25,600,527 $29,713,101 $36,366,098 $32,115,291
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(i)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate Fund
due to a substitution on October 22, 2018.
(j)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
FSA-77
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/IVY MID CAP EQ/IVY SCIENCE AND
EQ/IVY ENERGY*(C)(K) GROWTH*(C)(L) TECHNOLOGY*(C)(M)
-------------------- -------------- ------------------
2018 2018 2018
-------------------- -------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,552 $ (12,356) $ (12,806)
Net realized gain (loss)............... (64,522) (31,541) (173,400)
Net change in unrealized appreciation
(depreciation) of investments........ (4,497,704) (3,192,880) (3,885,520)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (4,554,674) (3,236,777) (4,071,726)
----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 448,845 498,738 655,938
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 14,502,337 36,235,095 36,407,134
Redemptions for contract benefits and
terminations......................... (52,038) (76,589) (123,859)
Contract maintenance charges........... (118,118) (215,738) (216,456)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 14,781,026 36,441,506 36,722,757
----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 12,750 -- 1,726
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 10,239,102 33,204,729 32,652,757
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- -- --
----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,239,102 $33,204,729 $32,652,757
=========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(k)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(l)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a substitution
on October 22, 2018.
(m)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due to
a substitution on October 22, 2018.
FSA-78
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/JPMORGAN VALUE EQ/LARGE CAP GROWTH EQ/LARGE CAP VALUE
OPPORTUNITIES* INDEX* INDEX*
------------------------- -------------------------- ------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 332,904 $ 209,523 $ 353,614 $ 503,425 $ 483,061 $ 433,024
Net realized gain (loss)............... 6,128,712 7,316,889 17,410,612 11,820,464 2,245,139 1,673,221
Net change in unrealized appreciation
(depreciation) of investments........ (14,604,905) (459,157) (21,527,934) 24,348,871 (5,163,413) 1,055,188
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (8,143,289) 7,067,255 (3,763,708) 36,672,760 (2,435,213) 3,161,433
------------ ----------- ------------ ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,458,081 2,518,595 6,983,652 6,754,755 1,969,105 2,030,222
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,960,234 6,143,448 (4,406,404) (1,668,287) (1,650,942) 134,283
Redemptions for contract benefits and
terminations......................... (2,318,012) (1,589,909) (5,802,642) (6,160,623) (1,359,157) (362,682)
Contract maintenance charges........... (1,759,848) (1,702,468) (5,329,214) (5,350,864) (813,035) (819,592)
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,340,455 5,369,666 (8,554,608) (6,425,019) (1,854,029) 982,231
------------ ----------- ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,802,834) 12,436,921 (12,318,316) 30,247,741 (4,289,242) 4,143,664
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 50,352,837 37,915,916 160,601,176 130,353,435 28,988,210 24,844,546
------------ ----------- ------------ ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 43,550,003 $50,352,837 $148,282,860 $160,601,176 $24,698,968 $28,988,210
============ =========== ============ ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-79
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/LAZARD EMERGING EQ/MFS INTERNATIONAL EQ/MFS INTERNATIONAL
MARKETS EQUITY*(C)(N) GROWTH* VALUE*(C)(O)
--------------------- ------------------------- --------------------
2018 2018 2017 2018
--------------------- ------------ ----------- --------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 76,969 $ 342,241 $ 273,243 $ (43,338)
Net realized gain (loss)............... (5,780) 6,156,089 3,002,534 (57,675)
Net change in unrealized appreciation
(depreciation) of investments........ (713,799) (11,400,219) 8,871,531 (4,576,888)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations............ (642,610) (4,901,889) 12,147,308 (4,677,901)
----------- ------------ ----------- ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,548,670 2,777,786 2,747,437 2,359,133
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 52,324,409 536,107 894,865 106,053,233
Redemptions for contract benefits and
terminations......................... (249,493) (1,531,690) (1,871,149) (268,686)
Contract maintenance charges........... (366,650) (1,375,760) (1,372,826) (622,499)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 53,256,936 406,443 398,327 107,521,181
----------- ------------ ----------- ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 414
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS... 52,614,326 (4,495,446) 12,545,635 102,843,694
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 51,192,265 38,646,630 --
----------- ------------ ----------- ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $52,614,326 $ 46,696,819 $51,192,265 $102,843,694
=========== ============ =========== ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(n)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(o)EQ/MFS International Value replaced MFS(R) International Value Portfolio due
to a substitution on October 22, 2018.
FSA-80
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/MFS UTILITIES
SERIES*(C)(P) EQ/MID CAP INDEX* EQ/MONEY MARKET*
---------------- -------------------------- --------------------------
2018 2018 2017 2018 2017
---------------- ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,447 $ 1,240,608 $ 942,438 $ 1,293,199 $ 1,894
Net realized gain (loss)............... (5,831) 18,481,450 20,804,385 3,973 4,114
Net change in unrealized appreciation
(depreciation) of investments........ (89,090) (37,940,546) (921,700) 3,115 632
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (82,474) (18,218,488) 20,825,123 1,300,287 6,640
---------- ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 38,278 9,151,686 13,989,156 83,705,875 74,309,383
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,346,830 (2,332,744) 12,310,822 1,575,257 19,368,117
Redemptions for contract benefits and
terminations......................... (1,642) (6,597,824) (11,824,318) (80,746,543) (81,637,216)
Contract maintenance charges........... (9,088) (4,908,979) (5,138,809) (15,954,459) (16,395,546)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,374,378 (4,687,861) 9,336,851 (11,419,870) (4,355,262)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- (21) 14,970
---------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 2,291,904 (22,906,349) 30,161,974 (10,119,604) (4,333,652)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 157,132,248 126,970,274 154,480,348 158,814,000
---------- ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,291,904 $134,225,899 $157,132,248 $144,360,744 $154,480,348
========== ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(p)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
FSA-81
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/PIMCO EQ/PIMCO
REAL TOTAL EQ/PIMCO ULTRA SHORT
RETURN*(C)(Q) RETURN*(C)(R) BOND*
------------- ------------- ------------------------
2018 2018 2018 2017
------------- ------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)..................... $ 102,385 $ 422,613 $ 575,866 $ 338,391
Net realized gain (loss)......................... 34,899 238,724 13,680 (4,530)
Net change in unrealized appreciation
(depreciation) of investments.................. (78,883) 410,518 (362,655) 180,974
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................ 58,401 1,071,855 226,891 514,835
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners............ 606,640 1,101,234 2,203,800 2,522,340
Transfers between Variable Investment Options
including guaranteed interest account, net..... 23,933,897 66,846,907 993,308 2,824,882
Redemptions for contract benefits and
terminations................................... (177,212) (268,391) (1,501,122) (1,697,778)
Contract maintenance charges..................... (237,130) (523,468) (1,808,236) (1,899,702)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from contractowners transactions............... 24,126,195 67,156,282 (112,250) 1,749,742
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP........... -- -- -- 313
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. 24,184,596 68,228,137 114,641 2,264,890
NET ASSETS -- BEGINNING OF YEAR OR PERIOD......... -- -- 33,270,859 31,005,969
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............... $24,184,596 $68,228,137 $33,385,500 $33,270,859
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(q)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(r)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
FSA-82
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/SMALL COMPANY EQ/T. ROWE PRICE GROWTH
EQ/QUALITY BOND PLUS* INDEX* STOCK*
------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 540,728 $ 355,221 $ 781,682 $ 799,920 $ (356,872) $ (287,380)
Net realized gain (loss)............... (305,373) (558,474) 11,320,740 9,632,868 18,354,311 14,524,649
Net change in unrealized appreciation
(depreciation) of investments........ (415,538) 701,106 (23,894,445) 1,718,087 (20,766,318) 12,054,306
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (180,183) 497,853 (11,792,023) 12,150,875 (2,768,879) 26,291,575
----------- ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,403,693 3,652,491 6,612,780 5,839,635 11,671,252 10,565,164
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,262,682) (8,845,640) (1,077,493) 2,911,718 747,416 3,728,883
Redemptions for contract benefits and
terminations......................... (2,423,040) (3,303,132) (3,062,507) (2,656,416) (3,447,977) (3,623,193)
Contract maintenance charges........... (3,186,540) (3,499,449) (2,794,233) (2,710,413) (3,747,718) (3,312,427)
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,468,569) (11,995,730) (321,453) 3,384,524 5,222,973 7,358,427
----------- ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,648,752) (11,497,877) (12,113,476) 15,535,399 2,454,094 33,650,002
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 45,400,051 56,897,928 101,479,813 85,944,414 112,079,477 78,429,475
----------- ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $41,751,299 $ 45,400,051 $ 89,366,337 $101,479,813 $114,533,571 $112,079,477
=========== ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-83
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP ASSET
EQ/T. ROWE PRICE HEALTH EQ/UBS GROWTH & MANAGER: GROWTH
SCIENCES*(C)(S) INCOME* PORTFOLIO
----------------------- ------------------------ ----------------------
2018 2018 2017 2018 2017
----------------------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ -- $ (909) $ (7,260) $ 15,177 $ 15,860
Net realized gain (loss)............... (29,755) 2,309,130 1,268,760 126,984 210,934
Net change in unrealized appreciation
(depreciation) of investments........ (823,342) (4,100,675) 1,320,196 (225,936) 26,312
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (853,097) (1,792,454) 2,581,696 (83,775) 253,106
---------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 318,959 642,673 773,313 127,084 85,550
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 8,400,775 (2,719,307) 2,833,189 (27,165) (77,648)
Redemptions for contract benefits and
terminations......................... (411) (442,469) (1,031,297) (417,412) (17,598)
Contract maintenance charges........... (22,107) (436,187) (444,918) (44,623) (36,019)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 8,697,216 (2,955,290) 2,130,287 (362,116) (45,715)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 9,007 -- -- -- --
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 7,853,126 (4,747,744) 4,711,983 (445,891) 207,391
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 16,096,068 11,384,085 1,591,314 1,383,923
---------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $7,853,126 $11,348,324 $16,096,068 $1,145,423 $1,591,314
========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(s)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
FSA-84
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP EQUITY- GOVERNMENT MONEY FIDELITY(R)/ /VIP GROWTH &
INCOME PORTFOLIO MARKET PORTFOLIO INCOME PORTFOLIO
------------------------ ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 36,513 $ 26,477 $ 19,493 $ 6,057 $ 1,162 $ 81,796
Net realized gain (loss)............... 103,960 33,787 -- -- 819,984 459,015
Net change in unrealized appreciation
(depreciation) of investments........ (283,361) 149,822 -- -- (1,691,998) 950,418
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (142,888) 210,086 19,493 6,057 (870,852) 1,491,229
---------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 364,082 326,990 172,255 192,674 962,740 1,222,128
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (280,400) (183,123) 269,993 (380,897) (549,721) (333,493)
Redemptions for contract benefits and
terminations......................... (87,410) (80,517) (37,768) (149) (504,023) (392,065)
Contract maintenance charges........... (47,022) (53,931) (45,968) (60,587) (414,538) (423,940)
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (50,750) 9,419 358,512 (248,959) (505,542) 72,630
---------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (193,638) 219,505 378,005 (242,902) (1,376,394) 1,563,859
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 1,804,413 1,584,908 1,089,358 1,332,260 10,173,654 8,609,795
---------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,610,775 $1,804,413 $1,467,363 $1,089,358 $ 8,797,260 $10,173,654
========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-85
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP HIGH FIDELITY(R)/ /VIP INVESTMENT FIDELITY(R)/ /VIP MID CAP
INCOME PORTFOLIO GRADE BOND PORTFOLIO PORTFOLIO
----------------------- --------------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 159,061 $ 193,518 $ 854,287 $ 370,838 $ 79,931 $ 90,039
Net realized gain (loss)............... (41,662) (41,290) (8,228) 213,753 3,220,805 1,330,964
Net change in unrealized appreciation
(depreciation) of investments........ (210,317) 96,590 (1,053,399) 209,639 (8,193,396) 3,659,520
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (92,918) 248,818 (207,340) 794,230 (4,892,660) 5,080,523
----------- ---------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 316,106 390,955 3,036,390 8,448,106 5,164,695 4,221,684
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,337,468) (7,655) 19,785,678 5,079,323 (1,586,532) 105,288
Redemptions for contract benefits and
terminations......................... (251,778) (127,467) (1,593,205) (6,260,023) (938,814) (917,962)
Contract maintenance charges........... (67,257) (59,927) (571,148) (900,438) (962,168) (867,228)
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (1,340,397) 195,906 20,657,715 6,366,968 1,677,181 2,541,782
----------- ---------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,433,315) 444,724 20,450,375 7,161,198 (3,215,479) 7,622,305
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,070,804 3,626,080 16,363,098 9,201,900 31,644,995 24,022,690
----------- ---------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 2,637,489 $4,070,804 $36,813,473 $16,363,098 $28,429,516 $31,644,995
=========== ========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-86
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP VALUE FIDELITY(R)/ /VIP VALUE FRANKLIN MUTUAL
PORTFOLIO STRATEGIES PORTFOLIO SHARES VIP FUND
--------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- --------- --------- -------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,276 $ 8,342 $ 2,948 $ 5,354 $ 204,329 $ 225,656
Net realized gain (loss)............... 70,488 44,941 32,269 85,781 398,148 634,235
Net change in unrealized appreciation
(depreciation) of investments........ (287,144) 59,005 (93,356) (21,373) (1,447,043) (6,575)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (204,380) 112,288 (58,139) 69,762 (844,566) 853,316
---------- --------- --------- -------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 219,536 105,910 131,489 36,231 702,605 637,676
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 516,778 (119,852) 10,249 102,267 (2,008,212) (643,853)
Redemptions for contract benefits and
terminations......................... (12,735) -- (315,371) (8,175) (327,816) (205,841)
Contract maintenance charges........... (25,979) (20,317) (9,672) (5,410) (251,824) (255,182)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 697,600 (34,259) (183,305) 124,913 (1,885,247) (467,200)
---------- --------- --------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 493,220 78,029 (241,444) 194,675 (2,729,813) 386,116
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 826,046 748,017 529,098 334,423 10,881,114 10,494,998
---------- --------- --------- -------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,319,266 $ 826,046 $ 287,654 $529,098 $ 8,151,301 $10,881,114
========== ========= ========= ======== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-87
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FRANKLIN SMALL CAP INVESCO V.I. DIVERSIFIED INVESCO V.I. MID CAP
VALUE VIP FUND DIVIDEND FUND CORE EQUITY FUND
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 84,313 $ 30,630 $ 329,880 $ 209,275 $ (4,093) $ 2,165
Net realized gain (loss)............... 1,866,944 675,237 607,046 893,099 560,008 36,137
Net change in unrealized appreciation
(depreciation) of investments........ (3,604,606) 424,449 (2,082,480) 15,062 (1,054,884) 430,480
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,653,349) 1,130,316 (1,145,554) 1,117,436 (498,969) 468,782
----------- ----------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,225,400 1,308,322 1,739,605 1,821,907 276,037 216,944
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 12,504 (768,691) (748,388) (1,199,630) 131,366 (82,942)
Redemptions for contract benefits and
terminations......................... (398,068) (207,995) (422,613) (127,609) (121,676) (87,848)
Contract maintenance charges........... (340,702) (319,086) (364,873) (358,741) (97,720) (92,575)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 499,134 12,550 203,731 135,927 188,007 (46,421)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- (6) --
----------- ----------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,154,215) 1,142,866 (941,823) 1,253,363 (310,968) 422,361
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,259,398 11,116,532 14,464,649 13,211,286 3,804,123 3,381,762
----------- ----------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $11,105,183 $12,259,398 $13,522,826 $14,464,649 $ 3,493,155 $3,804,123
=========== =========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-88
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
INVESCO V.I. SMALL CAP IVY VIP GLOBAL
EQUITY FUND EQUITY INCOME IVY VIP HIGH INCOME
----------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (9,777) $ (10,054) $ 15,245 $ 10,139 $ 2,124,227 $ 1,639,044
Net realized gain (loss)............... 336,850 170,891 39,100 36,952 (123,106) (243,257)
Net change in unrealized appreciation
(depreciation) of investments........ (1,213,467) 482,329 (150,013) 85,655 (2,884,856) 520,815
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (886,394) 643,166 (95,668) 132,746 (883,735) 1,916,602
----------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 421,892 395,973 78,374 91,888 4,278,615 3,681,097
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (82,185) 522,870 (453,431) 83,185 1,411,468 659,329
Redemptions for contract benefits and
terminations......................... (88,415) (77,531) (1,186) (4,879) (734,121) (897,197)
Contract maintenance charges........... (190,227) (180,525) (27,713) (26,377) (1,431,584) (1,264,121)
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 61,065 660,787 (403,956) 143,817 3,524,378 2,179,108
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 112 --
----------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (825,329) 1,303,953 (499,624) 276,563 2,640,755 4,095,710
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,917,440 4,613,487 1,025,378 748,815 32,857,092 28,761,382
----------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 5,092,111 $5,917,440 $ 525,754 $1,025,378 $35,497,847 $32,857,092
=========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-89
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MFS(R)/ /MASSACHUSETTS
IVY VIP SMALL CAP MFS(R)/ /INVESTORS TRUST INVESTORS GROWTH
GROWTH SERIES STOCK PORTFOLIO
------------------------ ---------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 18,769 $ (23,455) $ 6,573 $ 9,717 $ 4,170 $ 6,356
Net realized gain (loss)............... 4,706,592 107,204 272,022 161,574 406,570 216,672
Net change in unrealized appreciation
(depreciation) of investments........ (5,322,774) 2,025,126 (453,820) 484,584 (499,761) 790,808
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (597,413) 2,108,875 (175,225) 655,875 (89,021) 1,013,836
----------- ----------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,017,729 1,014,519 255,761 279,046 479,619 580,824
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 264,063 1,364,503 (759,168) 595,850 1,141,121 (319,403)
Redemptions for contract benefits and
terminations......................... (329,710) (433,924) (70,698) (9,822) (124,888) (133,375)
Contract maintenance charges........... (405,362) (339,263) (114,851) (111,975) (160,212) (166,280)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 546,720 1,605,835 (688,956) 753,099 1,335,640 (38,234)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 6 -- -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (50,687) 3,714,710 (864,181) 1,408,974 1,246,619 975,602
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,406,124 8,691,414 4,026,553 2,617,579 4,740,754 3,765,152
----------- ----------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $12,355,437 $12,406,124 $3,162,372 $4,026,553 $5,987,373 $4,740,754
=========== =========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-90
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MULTIMANAGER CORE MULTIMANAGER
AGGRESSIVE EQUITY* BOND* MID CAP GROWTH*
-------------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (1,970,348) $ (1,595,863) $ 1,513,634 $ 1,196,584 $ (83,947) $ (75,591)
Net realized gain (loss)............... 76,518,165 19,467,828 (703,201) (1,016,350) 4,308,250 1,892,769
Net change in unrealized appreciation
(depreciation) of investments........ (75,548,437) 90,566,246 (1,264,909) 1,627,190 (5,865,470) 4,700,332
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (1,000,620) 108,438,211 (454,476) 1,807,424 (1,641,167) 6,517,510
------------ ------------ ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 19,642,304 20,579,052 3,575,406 3,921,284 1,315,240 1,409,088
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (5,816,235) (7,898,955) (1,634,791) (5,037,961) (63,920) (5,305,433)
Redemptions for contract benefits and
terminations......................... (19,970,181) (19,931,528) (2,979,637) (2,335,291) (1,511,855) (1,536,075)
Contract maintenance charges........... (21,076,907) (21,448,107) (3,223,200) (3,426,225) (1,122,920) (1,107,159)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (27,221,019) (28,699,538) (4,262,222) (6,878,193) (1,383,455) (6,539,579)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (28,221,639) 79,738,673 (4,716,698) (5,070,769) (3,024,622) (22,069)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 457,137,617 377,398,944 64,643,113 69,713,882 29,766,783 29,788,852
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $428,915,978 $457,137,617 $59,926,415 $64,643,113 $26,742,161 $29,766,783
============ ============ =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-91
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MID CAP MULTIMANAGER NATURAL RESOURCES
VALUE* TECHNOLOGY* PORTFOLIO
------------------------- -------------------------- -----------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 139,806 $ 147,060 $ (336,916) $ (430,334) $ -- $ --
Net realized gain (loss)............... 4,982,126 5,540,659 30,526,380 16,358,155 (32,443) 314,388
Net change in unrealized appreciation
(depreciation) of investments........ (10,194,593) (2,234,798) (27,829,523) 19,494,100 (553,290) (382,799)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (5,072,661) 3,452,921 2,359,941 35,421,921 (585,733) (68,411)
------------ ----------- ------------ ------------ ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,543,167 1,634,900 6,584,437 6,136,240 199,394 248,271
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,206,402) (7,561,096) 3,511,970 3,719,728 (1,918,382) 208,084
Redemptions for contract benefits and
terminations......................... (1,590,082) (2,125,087) (4,699,617) (4,483,939) (20,941) (2,552)
Contract maintenance charges........... (1,548,757) (1,631,364) (4,343,518) (4,042,608) (35,350) (32,011)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,802,074) (9,682,647) 1,053,272 1,329,421 (1,775,279) 421,792
------------ ----------- ------------ ------------ ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (7,874,735) (6,229,726) 3,413,213 36,751,342 (2,361,012) 353,381
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 41,221,509 47,451,235 127,676,999 90,925,657 4,277,096 3,923,715
------------ ----------- ------------ ------------ ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 33,346,774 $41,221,509 $131,090,212 $127,676,999 $ 1,916,084 $4,277,096
============ =========== ============ ============ =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-92
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
PIMCO
COMMODITYREALRETURN(R)/ T. ROWE PRICE EQUITY
/STRATEGY PORTFOLIO INCOME PORTFOLIO TARGET 2015 ALLOCATION*
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 193,192 $ 1,042,484 $ 213,799 $ 167,523 $ 30,674 $ 24,923
Net realized gain (loss)............... (927,692) (1,020,101) 1,457,729 1,630,941 169,622 73,712
Net change in unrealized appreciation
(depreciation) of investments........ (846,643) 202,280 (3,057,011) 134,619 (272,000) 74,452
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,581,143) 224,663 (1,385,483) 1,933,083 (71,704) 173,087
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,031,513 1,198,968 974,604 961,625 55,080 59,562
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 293,523 259,203 448,100 (22,439) (149,697) 1,382,599
Redemptions for contract benefits and
terminations......................... (383,117) (217,289) (441,558) (1,003,917) -- --
Contract maintenance charges........... (435,001) (441,892) (539,665) (518,978) (16,253) (11,125)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 506,918 798,990 441,481 (583,709) (110,870) 1,431,036
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,074,225) 1,023,653 (944,002) 1,349,374 (182,574) 1,604,123
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 10,612,827 9,589,174 13,994,976 12,645,602 1,892,475 288,352
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,538,602 $10,612,827 $13,050,974 $13,994,976 $1,709,901 $1,892,475
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-93
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TARGET 2025 ALLOCATION* TARGET 2035 ALLOCATION* TARGET 2045 ALLOCATION*
----------------------- ----------------------- -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 140,641 $ 95,880 $ 69,872 $ 40,567 $ 43,750 $ 23,213
Net realized gain (loss)............... 351,991 75,888 190,662 31,591 94,118 34,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,093,575) 602,049 (656,629) 308,373 (386,721) 176,698
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (600,943) 773,817 (396,095) 380,531 (248,853) 234,782
----------- ---------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 516,784 433,499 626,863 272,395 458,201 336,458
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,292,438 4,539,714 1,373,433 1,451,315 973,093 544,878
Redemptions for contract benefits and
terminations......................... (89,525) (94,790) (51,928) (59,515) (17,703) (14,748)
Contract maintenance charges........... (138,422) (98,478) (115,782) (75,081) (111,876) (78,386)
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,581,275 4,779,945 1,832,586 1,589,114 1,301,715 788,202
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 89 -- 9 -- -- --
----------- ---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,980,421 5,553,762 1,436,500 1,969,645 1,052,862 1,022,984
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,645,472 2,091,710 3,313,155 1,343,510 1,777,373 754,389
----------- ---------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,625,893 $7,645,472 $4,749,655 $3,313,155 $2,830,235 $1,777,373
=========== ========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-94
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TEMPLETON DEVELOPING TEMPLETON GLOBAL BOND
TARGET 2055 ALLOCATION* MARKETS VIP FUND VIP FUND
----------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
--------- -------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,463 $ 7,608 $ 92,942 $ 101,719 $ (81,519) $ (82,617)
Net realized gain (loss)............... 42,868 12,353 479,829 4,178 (788,411) (566,721)
Net change in unrealized appreciation
(depreciation) of investments........ (133,277) 70,907 (3,670,319) 4,129,479 1,674,585 1,332,521
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (77,946) 90,868 (3,097,548) 4,235,376 804,655 683,183
--------- -------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 244,304 130,055 1,436,269 1,346,057 4,597,758 4,753,578
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 207,973 224,166 2,390,379 3,240,016 (1,271,718) 2,173,998
Redemptions for contract benefits and
terminations......................... (7,003) (85,020) (409,893) (358,079) (1,347,516) (1,421,384)
Contract maintenance charges........... (36,521) (17,991) (623,534) (582,691) (2,013,413) (2,031,425)
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 408,753 251,210 2,793,221 3,645,303 (34,889) 3,474,767
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 56 63 -- --
--------- -------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 330,807 342,078 (304,271) 7,880,742 769,766 4,157,950
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 606,368 264,290 17,444,222 9,563,480 45,630,839 41,472,889
--------- -------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 937,175 $606,368 $17,139,951 $17,444,222 $46,400,605 $45,630,839
========= ======== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-95
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
VANGUARD VARIABLE
TEMPLETON GROWTH VANECK VIP GLOBAL HARD INSURANCE FUND - EQUITY
VIP FUND ASSETS FUND INDEX PORTFOLIO
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 86,664 $ 66,788 $ (21,206) $ (25,308) $ 108,008 $ 93,100
Net realized gain (loss)............... 419,961 (35,835) (328,197) (542,822) 838,203 790,061
Net change in unrealized appreciation
(depreciation) of investments........ (1,279,590) 790,464 (3,047,878) 284,049 (1,940,874) 625,587
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (772,965) 821,417 (3,397,281) (284,081) (994,663) 1,508,748
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 357,713 357,549 1,237,119 1,460,432 384,111 345,043
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (71,008) (97,295) (984,234) (751,613) 6,322,884 132,959
Redemptions for contract benefits and
terminations......................... (146,719) (166,930) (335,854) (401,384) (1,385,646) (205,024)
Contract maintenance charges........... (225,890) (229,794) (506,349) (581,986) (210,430) (123,888)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (85,904) (136,470) (589,318) (274,551) 5,110,919 149,090
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (858,869) 684,947 (3,986,599) (558,632) 4,116,256 1,657,838
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,261,741 4,576,794 12,427,969 12,986,601 8,911,906 7,254,068
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 4,402,872 $5,261,741 $ 8,441,370 $12,427,969 $13,028,162 $8,911,906
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-96
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
The change in units outstanding for the years or periods ended December 31,
2018 and 2017 were as follows:
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
1290 VT CONVERTIBLE SECURITIES.................... B 18 (3) 15 7 (1) 6
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. B 35 (114) (79) 78 (10) 68
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. B 14 (4) 10 3 -- 3
1290 VT EQUITY INCOME............................. A 1 (5) (4) 4 (3) 1
1290 VT EQUITY INCOME............................. B 6 (7) (1) 6 (8) (2)
1290 VT GAMCO MERGERS & ACQUISITIONS.............. A 11 (26) (15) 31 (5) 26
1290 VT GAMCO MERGERS & ACQUISITIONS.............. B 13 (15) (2) 14 (13) 1
1290 VT GAMCO SMALL COMPANY VALUE................. A 172 (103) 69 121 (102) 19
1290 VT GAMCO SMALL COMPANY VALUE................. B 34 (55) (21) 44 (54) (10)
1290 VT SMARTBETA EQUITY.......................... B 47 (5) 42 10 (2) 8
1290 VT SOCIALLY RESPONSIBLE...................... A -- -- -- 1 (1) --
1290 VT SOCIALLY RESPONSIBLE...................... B 4 (8) (4) 7 (5) 2
ALL ASSET GROWTH-ALT 20........................... B 73 (54) 19 125 (32) 93
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... CLASS 4 59 (13) 46 35 (13) 22
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... CLASS 4 223 (41) 182 82 (32) 50
AXA 400 MANAGED VOLATILITY........................ B 3 (5) (2) 8 (6) 2
AXA 500 MANAGED VOLATILITY........................ B 13 (7) 6 12 (6) 6
AXA 2000 MANAGED VOLATILITY....................... B 5 (4) 1 9 (4) 5
AXA AGGRESSIVE ALLOCATION......................... A 51 (43) 8 44 (48) (4)
AXA AGGRESSIVE ALLOCATION......................... B 20 (42) (22) 22 (33) (11)
AXA BALANCED STRATEGY............................. B 37 (16) 21 47 (10) 37
AXA CONSERVATIVE ALLOCATION....................... A 33 (30) 3 31 (48) (17)
AXA CONSERVATIVE ALLOCATION....................... B 11 (10) 1 7 (19) (12)
AXA CONSERVATIVE GROWTH STRATEGY.................. B 4 (5) (1) 10 (5) 5
|
The accompanying notes are an integral part of these financial statements.
FSA-97
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA CONSERVATIVE STRATEGY......................... B 8 (5) 3 3 (5) (2)
AXA CONSERVATIVE-PLUS ALLOCATION.................. A 72 (37) 35 60 (34) 26
AXA CONSERVATIVE-PLUS ALLOCATION.................. B 7 (12) (5) 10 (15) (5)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. A 18 (8) 10 6 (7) (1)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. B 9 (39) (30) 9 (48) (39)
AXA GROWTH STRATEGY............................... B 27 (25) 2 35 (9) 26
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... A 2 (5) (3) 2 (7) (5)
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... B 14 (25) (11) 11 (65) (54)
AXA INTERNATIONAL MANAGED VOLATILITY.............. B 7 (3) 4 7 (3) 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ A 17 (20) (3) 11 (11) --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ B 17 (40) (23) 17 (46) (29)
AXA LARGE CAP CORE MANAGED VOLATILITY............. A 5 (2) 3 4 (2) 2
AXA LARGE CAP CORE MANAGED VOLATILITY............. B 4 (10) (6) 5 (13) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... A 7 (14) (7) 8 (16) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... B 10 (59) (49) 10 (62) (52)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ A 16 (98) (82) 25 (111) (86)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ B 8 (50) (42) 10 (48) (38)
AXA MID CAP VALUE MANAGED VOLATILITY.............. A 10 (63) (53) 14 (62) (48)
AXA MID CAP VALUE MANAGED VOLATILITY.............. B 2 (3) (1) 2 (4) (2)
AXA MODERATE ALLOCATION........................... A 147 (145) 2 124 (147) (23)
AXA MODERATE ALLOCATION........................... B 98 (79) 19 31 (78) (47)
AXA MODERATE GROWTH STRATEGY...................... B 45 (28) 17 52 (43) 9
AXA MODERATE-PLUS ALLOCATION...................... A 198 (184) 14 160 (157) 3
AXA MODERATE-PLUS ALLOCATION...................... B 60 (134) (74) 47 (87) (40)
AXA/AB SMALL CAP GROWTH........................... A 73 (37) 36 33 (52) (19)
AXA/AB SMALL CAP GROWTH........................... B 7 (14) (7) 4 (19) (15)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. A 11 (14) (3) 21 (42) (21)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. B 22 (35) (13) 22 (56) (34)
|
The accompanying notes are an integral part of these financial statements.
FSA-98
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA/JANUS ENTERPRISE.............................. A 4 (17) (13) 11 (15) (4)
AXA/JANUS ENTERPRISE.............................. B 27 (22) 5 15 (18) (3)
AXA/LOOMIS SAYLES GROWTH.......................... A 47 (21) 26 30 (21) 9
AXA/LOOMIS SAYLES GROWTH.......................... B 18 (15) 3 13 (13) --
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. CLASS III 173 (64) 109 67 (45) 22
CHARTER/SM/ MULTI-SECTOR BOND..................... A 16 (24) (8) 17 (49) (32)
CHARTER/SM/ MULTI-SECTOR BOND..................... B 15 (23) (8) 12 (18) (6)
CHARTER/SM/ SMALL CAP GROWTH...................... B 15 (15) -- 9 (10) (1)
CHARTER/SM/ SMALL CAP VALUE....................... A 1 (7) (6) 1 (4) (3)
CHARTER/SM/ SMALL CAP VALUE....................... B 4 (7) (3) 5 (9) (4)
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ CLASS II 44 (13) 31 27 (2) 25
EQ/AMERICAN CENTURY MID CAP VALUE................. B 453 (10) 443 -- -- --
EQ/BLACKROCK BASIC VALUE EQUITY................... A 110 (113) (3) 90 (89) 1
EQ/BLACKROCK BASIC VALUE EQUITY................... B 16 (38) (22) 17 (48) (31)
EQ/CAPITAL GUARDIAN RESEARCH...................... A 19 (11) 8 12 (10) 2
EQ/CAPITAL GUARDIAN RESEARCH...................... B 8 (29) (21) 22 (41) (19)
EQ/COMMON STOCK INDEX............................. A 185 (283) (98) 257 (321) (64)
EQ/COMMON STOCK INDEX............................. B 47 (72) (25) 41 (71) (30)
EQ/CORE BOND INDEX................................ A 21 (27) (6) 191 (209) (18)
EQ/CORE BOND INDEX................................ B 20 (30) (10) 25 (18) 7
EQ/EQUITY 500 INDEX............................... A 310 (233) 77 335 (234) 101
EQ/EQUITY 500 INDEX............................... B 122 (101) 21 134 (97) 37
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP........ B 608 (19) 589 -- -- --
EQ/FRANKLIN RISING DIVIDENDS...................... B 243 (14) 229 -- -- --
EQ/FRANKLIN STRATEGIC INCOME...................... B 257 (7) 250 -- -- --
EQ/GLOBAL BOND PLUS............................... A 25 (20) 5 23 (23) --
EQ/GLOBAL BOND PLUS............................... B 10 (9) 1 10 (11) (1)
EQ/GOLDMAN SACHS MID CAP VALUE.................... B 50 (2) 48 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
EQ/INTERMEDIATE GOVERNMENT BOND................... A 61 (224) (163) 93 (77) 16
EQ/INTERMEDIATE GOVERNMENT BOND................... B 10 (14) (4) 9 (21) (12)
EQ/INTERNATIONAL EQUITY INDEX..................... A 162 (176) (14) 208 (165) 43
EQ/INTERNATIONAL EQUITY INDEX..................... B 43 (45) (2) 40 (38) 2
EQ/INVESCO COMSTOCK............................... A 18 (20) (2) 32 (18) 14
EQ/INVESCO COMSTOCK............................... B 8 (6) 2 9 (8) 1
EQ/INVESCO GLOBAL REAL ESTATE..................... B 465 (16) 449 -- -- --
EQ/INVESCO INTERNATIONAL GROWTH................... B 541 (15) 526 -- -- --
EQ/IVY ENERGY..................................... B 261 (11) 250 -- -- --
EQ/IVY MID CAP GROWTH............................. B 265 (5) 260 -- -- --
EQ/IVY SCIENCE AND TECHNOLOGY..................... B 272 (15) 257 -- -- --
EQ/JPMORGAN VALUE OPPORTUNITIES................... A 71 (12) 59 22 (13) 9
EQ/JPMORGAN VALUE OPPORTUNITIES................... B 17 (21) (4) 32 (16) 16
EQ/LARGE CAP GROWTH INDEX......................... A 23 (17) 6 15 (11) 4
EQ/LARGE CAP GROWTH INDEX......................... B 32 (68) (36) 32 (65) (33)
EQ/LARGE CAP VALUE INDEX.......................... A 15 (31) (16) 27 (30) (3)
EQ/LARGE CAP VALUE INDEX.......................... B 22 (23) (1) 21 (11) 10
EQ/LAZARD EMERGING MARKETS EQUITY................. B 1,026 (60) 966 -- -- --
EQ/MFS INTERNATIONAL GROWTH....................... B 34 (36) (2) 44 (44) --
EQ/MFS INTERNATIONAL VALUE........................ B 1,081 (24) 1,057 -- -- --
EQ/MFS UTILITIES SERIES........................... B 106 (4) 102 -- -- --
EQ/MID CAP INDEX.................................. A 57 (23) 34 41 (22) 19
EQ/MID CAP INDEX.................................. B 41 (56) (15) 92 (60) 32
EQ/MONEY MARKET................................... A 4,482 (4,402) 80 3,502 (3,722) (220)
EQ/MONEY MARKET................................... B 580 (667) (87) 474 (416) 58
EQ/PIMCO REAL RETURN.............................. B 322 (17) 305 -- -- --
EQ/PIMCO TOTAL RETURN............................. B 768 (33) 735 -- -- --
EQ/PIMCO ULTRA SHORT BOND......................... A 18 (20) (2) 32 (19) 13
|
The accompanying notes are an integral part of these financial statements.
FSA-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
--------------- ------- -------- ---------- ------- -------- ----------
EQ/PIMCO ULTRA SHORT BOND......................... B 25 (26) (1) 21 (17) 4
EQ/QUALITY BOND PLUS.............................. A 39 (49) (10) 36 (66) (30)
EQ/QUALITY BOND PLUS.............................. B 10 (16) (6) 11 (18) (7)
EQ/SMALL COMPANY INDEX............................ A 45 (37) 8 60 (31) 29
EQ/SMALL COMPANY INDEX............................ B 16 (11) 5 16 (7) 9
EQ/T. ROWE PRICE GROWTH STOCK..................... A 203 (79) 124 178 (113) 65
EQ/T. ROWE PRICE GROWTH STOCK..................... B 53 (57) (4) 61 (42) 19
EQ/T. ROWE PRICE HEALTH SCIENCES.................. B 136 (2) 134 -- -- --
EQ/UBS GROWTH & INCOME............................ B 7 (23) (16) 33 (20) 13
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO... SERVICE CLASS 2 7 (8) (1) 3 (2) 1
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO........... SERVICE CLASS 2 13 (13) -- 16 (11) 5
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO. SERVICE CLASS 2 47 (38) 9 44 (21) 23
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO......... SERVICE CLASS 2 24 (21) 3 30 (23) 7
FIDELITY(R) VIP HIGH INCOME PORTFOLIO............. SERVICE CLASS 2 16 (34) (18) 21 (15) 6
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO... SERVICE CLASS 2 358 (175) 183 289 (150) 139
FIDELITY(R) VIP MID CAP PORTFOLIO................. SERVICE CLASS 2 144 (93) 51 108 (67) 41
FIDELITY(R) VIP VALUE PORTFOLIO................... SERVICE CLASS 2 23 (2) 21 4 (1) 3
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO........ SERVICE CLASS 2 4 (3) 1 4 (1) 3
FRANKLIN MUTUAL SHARES VIP FUND................... CLASS 2 27 (43) (16) 22 (16) 6
FRANKLIN SMALL CAP VALUE VIP FUND................. CLASS 2 63 (48) 15 81 (40) 41
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ SERIES II 128 (119) 9 166 (146) 20
INVESCO V.I. MID CAP CORE EQUITY FUND............. SERIES II 17 (8) 9 12 (6) 6
INVESCO V.I. SMALL CAP EQUITY FUND................ SERIES II 18 (8) 10 11 (4) 7
IVY VIP GLOBAL EQUITY INCOME...................... CLASS II 5 (6) (1) 8 (4) 4
IVY VIP HIGH INCOME............................... CLASS II 270 (104) 166 186 (93) 93
IVY VIP SMALL CAP GROWTH.......................... CLASS II 33 (16) 17 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-101
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
-------------------- ------- -------- ---------- ------- -------- ----------
MFS(R) INVESTORS TRUST SERIES..................... SERVICE CLASS 2 (6) (4) 8 (5) 3
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ SERVICE CLASS 10 (4) 6 8 (7) 1
MULTIMANAGER AGGRESSIVE EQUITY.................... A 20 (44) (24) 24 (56) (32)
MULTIMANAGER AGGRESSIVE EQUITY.................... B 55 (62) (7) 14 (17) (3)
MULTIMANAGER CORE BOND............................ A 25 (18) 7 34 (23) 11
MULTIMANAGER CORE BOND............................ B 24 (44) (20) 43 (79) (36)
MULTIMANAGER MID CAP GROWTH....................... A 1 (3) (2) 1 (2) (1)
MULTIMANAGER MID CAP GROWTH....................... B 5 (7) (2) 5 (33) (28)
MULTIMANAGER MID CAP VALUE........................ A 2 (2) -- 2 (6) (4)
MULTIMANAGER MID CAP VALUE........................ B 4 (12) (8) 6 (39) (33)
MULTIMANAGER TECHNOLOGY........................... A 43 (17) 26 37 (38) (1)
MULTIMANAGER TECHNOLOGY........................... B 59 (58) 1 34 (26) 8
NATURAL RESOURCES PORTFOLIO....................... CLASS II 79 (105) (26) 196 (180) 16
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO .. ADVISOR CLASS 25 (18) 7 29 (18) 11
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. CLASS II 12 (10) 2 18 (21) (3)
TARGET 2015 ALLOCATION............................ B 27 (14) 13 44 (24) 20
TARGET 2025 ALLOCATION............................ B 53 (18) 35 68 (18) 50
TARGET 2035 ALLOCATION............................ B 41 (10) 31 28 (6) 22
TARGET 2045 ALLOCATION............................ B 29 (6) 23 25 (12) 13
TARGET 2055 ALLOCATION............................ B 11 (4) 7 8 (2) 6
TEMPLETON DEVELOPING MARKETS VIP FUND............. CLASS 2 114 (91) 23 87 (54) 33
TEMPLETON GLOBAL BOND VIP FUND.................... CLASS 2 161 (104) 57 150 (93) 57
TEMPLETON GROWTH VIP FUND......................... CLASS 2 3 (4) (1) 5 (6) (1)
VANECK VIP GLOBAL HARD ASSETS FUND................ CLASS S 30 (38) (8) 50 (54) (4)
VANGUARD VARIABLE INSURANCE FUND - EQUITY INDEX
PORTFOLIO........................................ INVESTOR SHARE CLASS 26 (9) 17 7 (7) --
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
The -- on the Units Issued and Units Redeemed section may represent no units
issued and units redeemed or units issued and units redeemed of less than 500.
FSA-102
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
1. Organization
AXA Equitable Life Insurance Company ("AXA Equitable") Separate Account FP
("the Account") is organized as a unit investment trust, a type of
investment company, and is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940 (the "1940
Act"). The Account follows the investment company and reporting guidance of
the Financial Accounting Standards Board Accounting Standards Codification
Topic 946 - Investment Companies, which is part of accounting principles
generally accepted in the United States of America ("GAAP"). The Account has
Variable Investment Options, each of which invest in shares of a mutual fund
portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance
Funds), American Funds Insurance Series(R), AXA Premier VIP Trust ("VIP"),
BlackRock Variable Series Funds, Inc., EQ Advisors Trust ("EQAT"),
Fidelity(R) Variable Insurance Products Fund, Franklin Templeton Variable
Insurance Products Trust, Ivy Funds Variable Insurance Portfolios, Legg
Mason Partners Variable Equity Trust, MFS(R) Variable Insurance Trusts,
PIMCO Variable Insurance Trust, T. Rowe Price Equity Series, Inc., The
Prudential Series Fund, Van Eck VIP Trust, and Vanguard Variable Insurance
Fund (collectively, "the Trusts"). The Trusts are open-ended investment
management companies that sell shares of a portfolio ("Portfolio") of a
mutual fund to separate accounts of insurance companies. Each Portfolio of
the Trusts has separate investment objectives. These financial statements
and notes are those of the Variable Investment Options of the Account.
The Account consists of the Variable Investment Options listed below.
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
. Invesco V.I. Diversified Dividend Fund
. Invesco V.I. Mid Cap Core Equity Fund
. Invesco V.I. Small Cap Equity Fund
AMERICAN FUNDS INSURANCE SERIES(R)
. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
. American Funds Insurance Series(R) New World Fund(R)
AXA PREMIER VIP TRUST*
. AXA Aggressive Allocation
. AXA Conservative Allocation
. AXA Conservative-Plus Allocation
. AXA Moderate Allocation
. AXA Moderate-Plus Allocation
. Charter/SM /Multi-Sector Bond
. Charter/SM /Small Cap Growth
. Charter/SM /Small Cap Value
. Target 2015 Allocation
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
BLACKROCK VARIABLE SERIES FUNDS, INC.
. BlackRock Global Allocation V.I. Fund
EQ ADVISORS TRUST*
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT Gamco Mergers & Acquisitions
. 1290 VT Gamco Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. AXA 400 Managed Volatility
. AXA 500 Managed Volatility
. AXA 2000 Managed Volatility
. AXA Balanced Strategy
. AXA Conservative Growth Strategy
. AXA Conservative Strategy
. AXA Global Equity Managed Volatility
. AXA Growth Strategy
. AXA International Core Managed Volatility
. AXA International Managed Volatility
. AXA International Value Managed Volatility
. AXA Large Cap Core Managed Volatility
. AXA Large Cap Growth Managed Volatility
. AXA Large Cap Value Managed Volatility
. AXA Mid Cap Value Managed Volatility
. AXA Moderate Growth Strategy
. AXA/AB Small Cap Growth
. AXA/Clearbridge Large Cap Growth
. AXA/Janus Enterprise
. AXA/Loomis Sayles Growth
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/Common Stock Index
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM/SM /Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Equity Index
FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Continued)
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science And Technology
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Growth Index
. EQ/Large Cap Value Index
. EQ/Lazard Emerging Markets EQuity
. EQ/MFS International Growth
. EQ/MFS International Value
. EQ/MFS Utilities Series
. EQ/Mid Cap Index
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/T. Rowe Price Health Sciences
. EQ/UBS Growth & Income
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND
. Fidelity(R) VIP Asset Manager: Growth Portfolio
. Fidelity(R) VIP Equity-Income Portfolio
. Fidelity(R) VIP Government Money Market Portfolio
. Fidelity(R) VIP Growth & Income Portfolio
. Fidelity(R) VIP High Income Portfolio
. Fidelity(R) VIP Investment Grade Bond Portfolio
. Fidelity(R) VIP Mid Cap Portfolio
. Fidelity(R) VIP Value Portfolio
. Fidelity(R) VIP Value Strategies Portfolio
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
. Franklin Mutual Shares VIP Fund
. Franklin Small Cap Value VIP Fund
. Templeton Developing Markets VIP Fund
. Templeton Global Bond VIP Fund
. Templeton Growth VIP Fund
IVY FUNDS VARIABLE INSURANCE PORTFOLIOS
. Ivy VIP Global Equity Income/(1)/
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
LEGG MASON PARTNERS VARIABLE EQUITY TRUST
. ClearBridge Variable Mid Cap Portfolio
MFS(R) VARIABLE INSURANCE TRUSTS
. MFS(R) Investors Trust Series
. MFS(R) Massachusetts Investors Growth Stock Portfolio
PIMCO VARIABLE INSURANCE TRUST
. PIMCO CommodityRealReturn(R) Strategy Portfolio
T. ROWE PRICE EQUITY SERIES, INC.
. T. Rowe Price Equity Income Portfolio
THE PRUDENTIAL SERIES FUND
. Natural Resources Portfolio
VANECK VIP TRUST
. VanEck VIP Global Hard Assets Fund
VANGUARD VARIABLE INSURANCE FUND
. Vanguard Variable Insurance Fund -- Equity Index Portfolio
(1)Formerly known as Ivy VIP Dividend Opportunities.
* An affiliate of AXA Equitable providing advisory and other services to one
or more Portfolios of this Trust, as further described in Note 5 of these
financial statements.
FSA-104
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Concluded)
The Account is used to fund benefits for the following Variable Life
products (collectively, the "Contracts"):
. Accumulator Life . IL Legacy II
. Incentive Life . IL Legacy III
. Incentive Life 2000 . IL Protector/SM/
. Incentive Life Sales (1999 and . Incentive Life COLI
after) . Incentive Life COLI '04
. Incentive Life '02 . Champion 2000
. Incentive Life '06 . Survivorship 2000
. Incentive Life(R) Optimizer . Survivorship Incentive Life 1999
. Incentive Life Optimizer. II . Survivorship Incentive Life '02
. Incentive Life Optimizer. III . Survivorship Incentive Life(R)
. Incentive Life Plus/SM/ Legacy
. Incentive Life Plus Original . SP-Flex
Series . Corporate Owned Incentive Life(R)
. Paramount Life
. IL Legacy
|
The Incentive Life 2000, Champion 2000 and Survivorship 2000 Contracts are
herein referred to as the "Series 2000 Policies." Incentive Life Plus/SM/
Contracts offered with a prospectus dated on or after September 15, 1995,
are referred to as "Incentive Life Plus/SM/." Incentive Life Plus Contracts
issued with a prior prospectus are referred to as "Incentive Life Plus
Original Series."
Under applicable insurance law, the assets and liabilities of the Account
are clearly identified and distinguished from AXA Equitable's other assets
and liabilities. All Contracts are issued by AXA Equitable. The assets of
the Account are the property of AXA Equitable. However, the portion of the
Account's assets attributable to the Contracts will not be chargeable with
liabilities arising out of any other business AXA Equitable may conduct.
The amount retained by AXA Equitable in the Account arises primarily from
(1) contributions from AXA Equitable and (2) that portion, determined
ratably, of the Account's investment results applicable to those assets in
the Account in excess of the net assets attributable to accumulation of
units. Amounts retained by AXA Equitable are not subject to charges for
mortality and expense charges and administrative charges. Amounts retained
by AXA Equitable in the Account may be transferred at any time by AXA
Equitable to its General Account ("General Account").
Each of the Variable Investment Options of the Account bears indirect
exposure to the market, credit, and liquidity risks of the Portfolio in
which it invests. These financial statements and footnotes should be read in
conjunction with the financial statements and footnotes of the Portfolios of
the Trusts, which are distributed by AXA Equitable to the Contractowners of
the Variable Investment Options of the Account.
In the normal course of business, AXA Equitable may have agreements to
indemnify another party under given circumstances. The maximum exposure
under these arrangements is unknown as this would involve future claims that
may be, but have not been, made against the Variable Investment Options of
the Account. Based on experience, the risk of material loss is expected to
be remote.
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with GAAP.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
INVESTMENTS:
Investments are made in shares of the Portfolios and the fair values of
investments are the reported net asset values per share of the respective
Portfolios. The net asset value is determined by the Trusts using the fair
value of the underlying assets of the Portfolio less liabilities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME:
Investment transactions are recorded on the trade date. Dividend income and
and net realized gain distributions from the Portfolios are recorded and
automatically reinvested on the ex-dividend date. Net realized gain (loss )
on investments are gains and losses on redemptions of investments in the
Portfolios (determined on the identified cost basis).
FSA-105
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
2. Significant Accounting Policies (Concluded)
DUE TO AND DUE FROM:
Receivable/payable for policy-related transactions represent amounts due
to/from AXA Equitable's General Account primarily related to premiums,
surrenders, death benefits and amounts transferred among various Portfolios
by Contractowners. Receivable/payable for shares of the Portfolios
sold/purchased represent unsettled trades.
ACCUMULATION NONUNITIZED:
Accumulation nonunitized represents a product offered based upon a dollar
amount (starting at $1) rather than units. It is similar to Accumulation
Units accounts, which are based upon units, as the dollar amount of the
Contractowner account changes with the investment activity of the Variable
Investment Option the Contract is invested in, net of contract charges.
CONTRACT PAYMENTS AND TRANSFERS:
Payments received from Contractowners represent participant contributions
under the Contracts reduced by deductions and charges, including premium
charges, as applicable, and state premium taxes. Contractowners may allocate
amounts in their individual accounts to the Variable Investment Options, and
(except for SP-Flex Contracts), to the guaranteed interest account of AXA
Equitable's General Account, and/or index fund options of Separate Account
No. 67.
Transfers between Variable Investment Options including the guaranteed
interest account, net, are amounts that participants have directed to be
moved among Portfolios, including permitted transfers to and from the
guaranteed interest account, and/or index fund options of Separate Account
No. 67. The net assets of any Variable Investment Option may not be less
than the aggregate value of the Contractowner accounts allocated to that
Variable Investment Option. AXA Equitable is required by state insurance
laws to set aside additional assets in AXA Equitable's General Account to
provide for other policy benefits. AXA Equitable's General Account is
subject to creditor rights.
Redemptions for contract benefits and terminations are payments to
participants and beneficiaries made under the terms of the Contracts and
amounts that participants have requested to be withdrawn and paid to them.
Withdrawal charges, if any, are included in Redemptions for contract
benefits and terminations to the extent that such charges apply to the
Contracts. Administrative charges, if any, are included in Contract
maintenance charges to the extent that such charges apply to the Contracts.
TAXES:
The operations of the Account are included in the federal income tax return
of AXA Equitable which is taxed as a life insurance company under the
provisions of the Internal Revenue Code. No federal income tax based on net
income or realized and unrealized capital gains is currently applicable to
Contracts participating in the Account by reason of applicable provisions of
the Internal Revenue Code and no federal income tax payable by AXA Equitable
is expected to affect the unit value of Contracts participating in the
Account. Accordingly, no provision for income taxes is required. However,
AXA Equitable retains the right to charge for any federal income tax which
is attributable to the Account if the law is changed.
3. Fair Value Disclosures
Under GAAP, fair value is the price that would be received for an asset or
paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. GAAP also establishes a
fair value hierarchy that requires an entity to maximize the use of
observable inputs and minimize the use of unobservable inputs when measuring
fair value, and identifies three levels of inputs that may be used to
measure fair value:
Level 1 -- Quoted prices that are publicly available for identical assets in
active markets. Level 1 fair values generally are supported by market
transactions that occur with sufficient frequency and volume to provide
pricing information on an ongoing basis.
Level 2 -- Observable inputs other than Level 1 prices, such as quoted
prices for similar assets, quoted prices in markets that are not active, and
inputs to model-derived valuations that are directly observable or can be
corroborated by observable market data.
Level 3 -- Unobservable inputs supported by little or no market activity and
often requiring significant judgment or estimation, such as an entity's own
assumptions about the cash flows or other significant components of value
that market participants would use in pricing the asset or liability.
All investments of each Variable Investment Option of the Account have been
classified as Level 1. There were no transfers between level 1, level 2 and
level 3 during the year.
FSA-106
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio
The cost of purchases and proceeds from sales of Portfolios for the year
ended December 31, 2018 were as follows:
PURCHASES SALES
------------ ------------
1290 VT Convertible Securities........................................................... $ 908,906 $ 179,688
1290 VT DoubleLine Dynamic Allocation.................................................... 1,756,785 2,371,422
1290 VT DoubleLine Opportunistic Bond.................................................... 570,015 144,720
1290 VT Equity Income.................................................................... 7,894,957 2,417,081
1290 VT Gamco Mergers & Acquisitions..................................................... 3,248,893 2,896,325
1290 VT Gamco Small Company Value........................................................ 26,861,276 22,036,325
1290 VT SmartBeta Equity................................................................. 1,017,412 191,183
1290 VT Socially Responsible............................................................. 960,310 1,439,902
All Asset Growth-Alt 20.................................................................. 8,222,453 3,296,590
American Funds Insurance Series(R) Global Small Capitalization Fund/SM/.................. 3,248,746 958,715
American Funds Insurance Series(R) New World Fund(R)..................................... 12,043,624 2,380,343
AXA 400 Managed Volatility............................................................... 1,032,807 1,011,989
AXA 500 Managed Volatility............................................................... 3,230,347 1,685,738
AXA 2000 Managed Volatility.............................................................. 1,315,936 733,567
AXA Aggressive Allocation................................................................ 23,047,413 19,723,191
AXA Balanced Strategy.................................................................... 7,413,328 2,632,878
AXA Conservative Allocation.............................................................. 4,608,404 4,500,357
AXA Conservative Growth Strategy......................................................... 855,025 720,816
AXA Conservative Strategy................................................................ 1,118,965 663,607
AXA Conservative-Plus Allocation......................................................... 5,818,381 5,833,980
AXA Global Equity Managed Volatility..................................................... 15,951,941 15,807,304
AXA Growth Strategy...................................................................... 6,867,561 4,732,899
AXA International Core Managed Volatility................................................ 3,550,246 5,533,520
AXA International Managed Volatility..................................................... 1,011,075 386,255
AXA International Value Managed Volatility............................................... 6,117,094 9,478,502
AXA Large Cap Core Managed Volatility.................................................... 4,029,933 2,704,999
AXA Large Cap Growth Managed Volatility.................................................. 28,959,749 30,249,995
AXA Large Cap Value Managed Volatility................................................... 32,319,185 37,933,605
AXA Mid Cap Value Managed Volatility..................................................... 21,785,425 22,166,413
AXA Moderate Allocation.................................................................. 76,984,189 83,305,728
AXA Moderate Growth Strategy............................................................. 11,862,989 4,925,299
AXA Moderate-Plus Allocation............................................................. 50,558,433 60,222,292
AXA/AB Small Cap Growth.................................................................. 44,250,852 22,193,108
AXA/Clearbridge Large Cap Growth......................................................... 13,793,575 11,357,474
AXA/Janus Enterprise..................................................................... 7,613,958 9,090,430
AXA/Loomis Sayles Growth................................................................. 13,427,796 8,002,194
BlackRock Global Allocation V.I. Fund.................................................... 3,287,502 1,357,824
Charter/SM/ Multi-Sector Bond............................................................ 5,917,176 9,459,063
Charter/SM/ Small Cap Growth............................................................. 4,961,637 2,995,009
Charter/SM/ Small Cap Value.............................................................. 2,358,557 4,708,732
ClearBridge Variable Mid Cap Portfolio................................................... 560,119 156,857
EQ/American Century Mid Cap Value........................................................ 55,317,132 1,282,284
EQ/BlackRock Basic Value Equity.......................................................... 32,689,194 26,002,008
EQ/Capital Guardian Research............................................................. 18,679,312 11,345,095
EQ/Common Stock Index.................................................................... 135,954,238 186,357,714
EQ/Core Bond Index....................................................................... 6,846,477 8,184,427
EQ/Equity 500 Index...................................................................... 104,223,887 103,669,937
EQ/Fidelity Institutional AM/SM/ Large Cap............................................... 109,716,707 3,778,191
EQ/Franklin Rising Dividends............................................................. 59,689,147 3,360,499
EQ/Franklin Strategic Income............................................................. 35,028,431 866,146
EQ/Global Bond Plus...................................................................... 2,582,039 2,518,491
|
FSA-107
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Continued)
PURCHASES SALES
------------ ------------
EQ/Goldman Sachs Mid Cap Value................................................................... $ 9,650,342 $ 294,756
EQ/Intermediate Government Bond.................................................................. 6,196,759 46,636,788
EQ/International Equity Index.................................................................... 24,926,472 30,192,929
EQ/Invesco Comstock.............................................................................. 4,958,413 3,823,934
EQ/Invesco Global Real Estate.................................................................... 38,172,463 1,126,032
EQ/Invesco International Growth.................................................................. 35,222,745 1,336,815
EQ/Ivy Energy.................................................................................... 15,166,547 363,539
EQ/Ivy Mid Cap Growth............................................................................ 37,251,933 817,732
EQ/Ivy Science And Technology.................................................................... 39,663,326 2,947,375
EQ/JPMorgan Value Opportunities.................................................................. 14,069,232 8,412,337
EQ/Large Cap Growth Index........................................................................ 20,129,904 18,275,077
EQ/Large Cap Value Index......................................................................... 6,206,203 6,468,630
EQ/Lazard Emerging Markets Equity................................................................ 56,110,645 2,785,617
EQ/MFS International Growth...................................................................... 11,473,563 6,004,359
EQ/MFS International Value....................................................................... 109,777,012 2,299,765
EQ/MFS Utilities Series.......................................................................... 2,588,703 201,945
EQ/Mid Cap Index................................................................................. 28,056,220 19,963,043
EQ/Money Market.................................................................................. 199,251,630 215,403,115
EQ/PIMCO Real Return............................................................................. 25,870,834 1,597,898
EQ/PIMCO Total Return............................................................................ 70,255,240 2,442,187
EQ/PIMCO Ultra Short Bond........................................................................ 5,741,098 5,277,481
EQ/Quality Bond Plus............................................................................. 4,768,452 7,696,694
EQ/Small Company Index........................................................................... 23,146,392 13,900,781
EQ/T. Rowe Price Growth Stock.................................................................... 34,458,545 19,913,019
EQ/T. Rowe Price Health Sciences................................................................. 9,112,283 407,385
EQ/UBS Growth & Income........................................................................... 2,967,337 4,446,507
Fidelity(R) VIP Asset Manager: Growth Portfolio.................................................. 417,610 702,656
Fidelity(R) VIP Equity-Income Portfolio.......................................................... 523,360 458,734
Fidelity(R) VIP Government Money Market Portfolio................................................ 819,828 441,823
Fidelity(R) VIP Growth & Income Portfolio........................................................ 2,332,079 2,251,602
Fidelity(R) VIP High Income Portfolio............................................................ 1,011,739 2,193,076
Fidelity(R) VIP Investment Grade Bond Portfolio.................................................. 30,926,755 9,186,320
Fidelity(R) VIP Mid Cap Portfolio................................................................ 11,547,096 7,001,719
Fidelity(R) VIP Value Portfolio.................................................................. 920,966 150,283
Fidelity(R) VIP Value Strategies Portfolio ...................................................... 270,611 430,168
Franklin Mutual Shares VIP Fund.................................................................. 1,566,507 2,902,810
Franklin Small Cap Value VIP Fund................................................................ 5,064,151 2,537,019
Invesco V.I. Diversified Dividend Fund........................................................... 3,657,803 2,594,897
Invesco V.I. Mid Cap Core Equity Fund............................................................ 1,910,037 1,087,842
Invesco V.I. Small Cap Equity Fund............................................................... 1,423,305 959,812
Ivy VIP Global Equity Income..................................................................... 174,021 491,091
Ivy VIP High Income.............................................................................. 11,701,086 6,053,420
Ivy VIP Small Cap Growth......................................................................... 7,851,540 2,639,634
MFS(R) Investors Trust Series.................................................................... 544,574 1,068,435
MFS(R) Massachusetts Investors Growth Stock Portfolio............................................ 2,706,484 1,083,302
Multimanager Aggressive Equity................................................................... 68,977,681 50,760,463
Multimanager Core Bond........................................................................... 6,919,099 9,667,709
Multimanager Mid Cap Growth...................................................................... 6,039,496 3,450,655
Multimanager Mid Cap Value....................................................................... 4,566,495 4,106,317
Multimanager Technology.......................................................................... 49,874,863 33,337,893
Natural Resources Portfolio...................................................................... 3,889,499 5,664,775
PIMCO CommodityRealReturn(R) Strategy Portfolio.................................................. 1,947,049 1,246,936
T. Rowe Price Equity Income Portfolio............................................................ 3,981,862 2,031,385
|
FSA-108
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Concluded)
PURCHASES SALES
----------- -----------
Target 2015 Allocation....................................... $ 909,414 $ 859,824
Target 2025 Allocation....................................... 4,369,968 1,429,794
Target 2035 Allocation....................................... 3,072,839 1,111,330
Target 2045 Allocation....................................... 1,794,011 419,651
Target 2055 Allocation....................................... 720,388 299,175
Templeton Developing Markets VIP Fund........................ 14,385,495 11,499,331
Templeton Global Bond VIP Fund............................... 7,210,224 7,327,369
Templeton Growth VIP Fund.................................... 1,079,241 658,463
VanEck VIP Global Hard Assets Fund........................... 2,234,810 2,845,333
Vanguard Variable Insurance Fund -- Equity Index Portfolio... 8,187,225 2,796,592
|
5. Expenses and Related Party Transactions
The assets in each Variable Investment Option are invested in shares of a
corresponding Portfolio of the Trusts. Shares are offered by the Portfolios
at net asset value. Shares in which the Variable Investment Options invest
are categorized by the share class of the Portfolio. EQAT and VIP issue
Class A, Class B and Class K shares. All share classes issued by EQAT and
VIP are subject to fees for investment management, advisory services,
administration and other Portfolio expenses. Class A and Class B are also
subject to distribution fees imposed under a distribution plan (herein the
"Rule 12b-1 Plans") approved by the EQAT and VIP Trusts' Board of Trustees
and adopted by the applicable Trust. The Rule 12b-1 Plans provide that the
EQAT and VIP Trusts, on behalf of each related Portfolio, may charge a
maximum annual distribution and/or service (12b-1) fee of 0.25% of the
average daily net assets of a Portfolio attributable to its Class A or Class
B shares. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors"), affiliates of AXA Equitable, may
also receive distribution fees under Rule 12b-1 Plans as described above.
The class-specific expenses attributable to the investment in each share
class of the Portfolios in which the Variable Investment Options invest are
borne by the specific unit classes of the Variable Investment Options to
which the investments are attributable.
AXA Equitable Funds Management Group, LLC ("FMG LLC"), a wholly-owned
subsidiary of AXA Equitable serves as investment manager of the Portfolios
of EQAT and VIP. FMG LLC either (1) directly manages the Portfolios or
(2) contracts with and oversees the activities of the investment
sub-advisors with respect to the Portfolios and is responsible for retaining
and discontinuing the services of those sub-advisors. FMG LLC receives
management fees for services performed in its capacity as investment manager
of the Portfolios of EQAT and VIP, and pays fees to the sub-advisors for
sub-advisory services to the respective Portfolios. FMG LLC also serves as
administrator of the Portfolios of EQAT and VIP. As the administrator, FMG
LLC either (1) carries out its responsibilities directly or (2) through
sub-contracting with third-party providers. FMG LLC receives administrative
fees for services performed in its capacity as administrator of the
Portfolios of EQAT and VIP. Expenses of the Portfolios of EQAT and VIP
generally vary, depending on net asset levels for individual Portfolios, and
range from a low annual rate of 0.57% to a high of 1.45% (after waivers,
reimbursements, fees paid indirectly and including indirect expenses, as
applicable) of the average daily net assets of the Portfolios of EQAT and
VIP. Since these fees and expenses are reflected in the net asset value of
the shares of the Portfolios and the total returns of the Variable
Investment Options, they are not included in the expenses or expense ratios
of the Variable Investment Options.
AXA Equitable, AXA Advisors or AXA Distributors may directly or indirectly
receive 12b-1 fees and additional payments from certain unaffiliated
Portfolios, their advisers, sub-advisers, distributors or affiliates, for
providing certain administrative, marketing, distribution and/or shareholder
support services in connection with the Variable Investment Options'
investment in the Portfolios. These fees and payments range from 0.00% to
0.60% of the unaffiliated Portfolios' average daily net assets. AXA Advisors
or AXA Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the policies and/or the advisers' respective
Portfolios.
AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor
for a number of Portfolios in EQAT and VIP including the AXA/AB Small Cap
Growth, EQ/Common Stock Index, EQ/Equity 500 Index, EQ/International Equity
Index, EQ/Large Cap Growth Index, EQ/Large Cap Value Index, EQ/Mid Cap Index
and EQ/Small Company Index, as well as a portion of AXA Large Cap Value
Managed Volatility, EQ/Quality Bond PLUS, Multimanager Aggressive Equity,
Multimanager Mid Cap Growth and Multimanager Technology. AllianceBernstein
is a limited partnership which is indirectly majority-owned by AXA Equitable
Holdings, Inc.
AXA Advisors and AXA Distributors are distributors and principal
underwriters of the Account. They are both registered with the SEC as
broker-dealers and are members of the Financial Industry Regulatory
Authority ("FINRA").
FSA-109
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
5. Expenses and Related Party Transactions (Concluded)
The Contracts are sold by financial professionals who are registered
representatives of AXA Advisors and licensed insurance agents of AXA
Network, LLC ("AXA Network") or its subsidiaries. The Contracts are also
sold through licensed insurance agencies (both affiliated and unaffiliated
with AXA Equitable) and their affiliated broker-dealers (who are registered
with the SEC and members of the FINRA) that have entered into selling
agreements with AXA Distributors. The licensed insurance agents who sell
Contracts for these companies are appointed as agents of AXA Equitable and
are registered representatives of the agencies and affiliated broker-dealer.
AXA Network receives commissions under its General Sales Agreement with AXA
Equitable and its Networking Agreement with AXA Advisors. AXA Advisors
receives service-related payments under its Supervisory and Distribution
Agreement with AXA Equitable. The financial professionals are compensated on
a commission basis by AXA Network.
AXA Equitable serves as the transfer agent for EQAT and VIP.
6. Reorganization
In October 2018, AXA Equitable replaced certain portfolios (each a
"Substituted Portfolio" and together, the "Substituted Portfolios") which
were offered for certain variable annuity contracts and/or variable life
insurance contracts with new and substantially similar portfolios (each a
"Replacement Portfolio" and together, the "Replacement Portfolios").
Correspondingly, the Variable Investment Options that invested in the
Substituted Portfolios were replaced with the Variable Investment Options
that invest in the Replacement Portfolios.
------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 AMERICAN CENTURY VP MID CAP EQ/AMERICAN CENTURY
VALUE FUND MID CAP VALUE
------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 2,588,795 2,588,795
Net Asset Value $ 20.52 $ 20.52
Net Assets Before Substitution $ 53,122,080 $ --
Net Assets After Substitution $ -- $ 53,122,080
Realized Gain $ 1,058,165
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FIDELITY(R) VIP CONTRAFUND(R) EQ/FIDELITY INSTITUTIONAL AM/SM/
PORTFOLIO LARGE CAP
------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS 2 CLASS B
Shares 3,085,057 3,085,057
Net Asset Value $ 34.69 $ 34.69
Net Assets Before Substitution $107,020,640 $ --
Net Assets After Substitution $ -- $107,020,640
Realized Gain $ 4,374,131
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN RISING EQ/FRANKLIN RISING DIVIDENDS
DIVIDENDS VIP FUND
------------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 2,166,839 2,166,839
Net Asset Value $ 27.02 $ 27.02
Net Assets Before Substitution $ 58,544,319 $ --
Net Assets After Substitution $ -- $ 58,544,319
Realized Gain $ 2,340,403
------------------------------------------------------------------------------------------------
|
FSA-110
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN STRATEGIC EQ/FRANKLIN STRATEGIC INCOME
INCOME VIP FUND
--------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 3,248,845 3,248,845
Net Asset Value $ 10.42 $ 10.42
Net Assets Before Substitution $ 33,858,489 $ --
Net Assets After Substitution -- $ 33,858,489
Realized Loss $ (1,778,147)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 GOLDMAN SACHS VIT MID CAP EQ/GOLDMAN SACHS MID CAP VALUE
VALUE FUND
--------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 544,224 544,224
Net Asset Value $ 16.69 $ 16.69
Net Assets Before Substitution $ 9,083,104 $ --
Net Assets After Substitution $ -- $ 9,083,104
Realized Gain $ 153,986
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. GLOBAL EQ/INVESCO GLOBAL REAL ESTATE
REAL ESTATE FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 2,388,624 2,388,624
Net Asset Value $ 15.23 $ 15.23
Net Assets Before Substitution $ 36,378,751 $ --
Net Assets After Substitution $ -- $ 36,378,751
Realized Loss $ (2,574,457)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. INTERNATIONAL EQ/INVESCO INTERNATIONAL GROWTH
GROWTH FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 969,615 969,615
Net Asset Value $ 34.38 $ 34.38
Net Assets Before Substitution $ 33,335,358 $ --
Net Assets After Substitution $ -- $ 33,335,358
Realized Loss $ (1,596,562)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP ENERGY EQ/IVY ENERGY
--------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,446,697 2,446,697
Net Asset Value $ 5.72 $ 5.72
Net Assets Before Substitution $ 13,993,395 $ --
Net Assets After Substitution $ -- $ 13,993,395
Realized Loss $ (512,717)
--------------------------------------------------------------------------------------------
|
FSA-111
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP MID CAP GROWTH EQ/IVY MID CAP GROWTH
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,981,041 2,981,041
Net Asset Value $ 12.14 $ 12.14
Net Assets Before Substitution $ 36,195,798 $ --
Net Assets After Substitution $ -- $ 36,195,798
Realized Gain $ 4,863,881
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP SCIENCE AND TECHNOLOGY EQ/IVY SCIENCE AND TECHNOLOGY
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 1,236,407 1,236,407
Net Asset Value $ 28.96 $ 28.96
Net Assets Before Substitution $ 35,811,031 $ --
Net Assets After Substitution $ -- $ 35,811,031
Realized Gain $ 4,512,498
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 LAZARD RETIREMENT EMERGING MARKETS EQ/LAZARD EMERGING
EQUITY PORTFOLIO MARKETS EQUITY
--------------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 2,720,369 2,720,369
Net Asset Value $ 19.44 $ 19.44
Net Assets Before Substitution $ 52,883,976 $ --
Net Assets After Substitution $ -- $ 52,883,976
Realized Loss $ (3,500,104)
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) INTERNATIONAL EQ/MFS INTERNATIONAL VALUE
VALUE PORTFOLIO
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 4,131,041 4,131,041
Net Asset Value $ 25.69 $ 25.69
Net Assets Before Substitution $106,126,439 $ --
Net Assets After Substitution $ -- $106,126,439
Realized Gain $ 7,133,907
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) UTILITIES SERIES EQ/MFS UTILITIES SERIES
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 80,952 80,952
Net Asset Value $ 29.84 $ 29.84
Net Assets Before Substitution $ 2,415,612 $ --
Net Assets After Substitution $ -- $ 2,415,612
Realized Gain $ 174,517
--------------------------------------------------------------------------------------------------
|
FSA-112
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Concluded)
----------------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO REAL RETURN PORTFOLIO EQ/PIMCO REAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 2,076,751 2,076,751
Net Asset Value $ 11.87 $ 11.87
Net Assets Before Substitution $24,651,040 $ --
Net Assets After Substitution $ -- $24,651,040
Realized Loss $(1,438,476)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO TOTAL RETURN PORTFOLIO EQ/PIMCO TOTAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 6,300,749 6,300,749
Net Asset Value $ 10.51 $ 10.51
Net Assets Before Substitution $66,220,873 $ --
Net Assets After Substitution $ -- $66,220,873
Realized Loss $(2,751,515)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 T. ROWE PRICE HEALTH SCIENCES PORTFOLIO EQ/T. ROWE PRICE HEALTH SCIENCES
----------------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 180,949 180,949
Net Asset Value $ 45.62 $ 45.62
Net Assets Before Substitution $ 8,254,879 $ --
Net Assets After Substitution $ -- $ 8,254,879
Realized Gain $ 929,504
----------------------------------------------------------------------------------------------------------
|
In May 2017, pursuant to an Agreement and Plan of Reorganization and
Termination, as approved by contractholders, All Asset Growth-Alt 20 (the
"Surviving Portfolio") acquired the net assets of All Asset Aggressive-Alt
25 (the "Removed Portfolio"). Correspondingly, the Variable Investment
Options that invested in the Removed Portfolio (the "Removed Investment
Option") were replaced with the Variable Investment Options that invest in
the Surviving Portfolio (the "Surviving Investment Option"). For accounting
purposes, these reorganizations were treated as a merger.
-------------------------------------------------------------------------------
REMOVED PORTFOLIO SURVIVING PORTFOLIO
-------------------------------------------------------------------------------
MAY 19, 2017 ALL ASSET AGGRESSIVE-ALT 25 ALL ASSET GROWTH-ALT 20
-------------------------------------------------------------------------------
Share Class CLASS B CLASS B
Shares 496,159 1,323,456
Net Asset Value $ 12.58 $ 20.09
Net Assets Before Merger $6,242,639 $20,339,358
Net Assets After Merger $ -- $26,581,997
Unrealized Loss $ 347,214
-------------------------------------------------------------------------------
|
FSA-113
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges
The table below lists the charges for each product. These charges are
reflected as "Asset-based Charges" in the Statement of Operations or as part
of "Contractowners Transactions" in the Statement of Changes in Net Assets.
MORTALITY AND
EXPENSE RISKS MORTALITY ADMINISTRATIVE TOTAL
------------- --------- -------------- ------
Accumulator Life............................................ varies/(b)(d)/ varies/(b)/ varies/(b)(f)/ varies
Incentive Life, Champion 2000............................... 0.60%/(a)/ -- -- 0.60%
Incentive Life 2000, Incentive Life 1999, Incentive Life
Plus...................................................... 0.60%/(l)(n)/ -- -- 0.60%
Incentive Life '02.......................................... varies/(b)(g)/ -- -- 0.80%
Incentive Life '06.......................................... 0.85%/(b)(e)/ -- -- 0.85%
Survivorship Incentive Life '02............................. 0.90%/(b)(m)/ -- -- 0.90%
Paramount Life.............................................. 0.60%/(a)/ -- -- 0.60%
Incentive Life Plus Original Series......................... 0.60%/(b)(l)/ -- -- 0.60%
Incentive Life COLI......................................... 0.60%/(b)/ -- -- 0.60%
Incentive Life COLI '04..................................... 0.75%/(b)(c)/ -- -- 0.75%
Survivorship Incentive Life 1999............................ 0.60%/(a)/ -- -- 0.60%
Survivorship 2000........................................... 0.90%/(a)/ -- -- 0.90%
IL Legacy................................................... 1.75%/(b)(h)/ -- -- 1.75%
IL Legacy II................................................ 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Legacy III............................................... 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Protector................................................ 0.80%/(a)/ -- -- 0.80%
SP-Flex..................................................... 0.85%/(a)/ 0.60%/(a)/ 0.35%/(a)/ 1.80%
Incentive Life(R) Optimizer................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer II................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer III................................ 0.60%/(b)(l)(o)/ -- -- 0.60%
Survivorship Incentive Life(R) Legacy....................... 0.55%/(b)(j)/ -- -- 0.55%
Corporate Owned Incentive Life(R)........................... 0.35%/(b)(k)(l)/ -- -- 0.35%
|
(a)Charged to daily net assets of the Account.
(b)Charged to Contractowners Account and is included in Transfer for contract
benefits and terminations in the Statements of Changes in Net Assets.
(c)Policy years 1-5 0.75% (1.00% maximum) Policy years 6-20 0.55% (0.75%
maximum) Policy years 21+ 0.35% (0.50% maximum)
(d)Varies by age, sex, class. The highest current charge is 1.21%. Policy
years 1-10 0.71% to 1.46% maximum Policy years 11+ 0.30% to 0.50% maximum
(e)Policy years 1-8 0.85% (1.00% maximum) Policy years 9-10 0.00% (1.00%
maximum) Policy years 11+ 0.00% (0.50% maximum)
(f)Policy years 1-10 0.72% to 1.73% Policy years 11+ 0.11% to 0.32%
(g)Policy years 1-15 0.80%, 0.70% or 0.60% depending (0.80% maximum) Policy
years 16+ 0.30% or 0.20% depending (0.50% maximum)
(h)Policy years 1-10 1.75% (maximum and current) Policy years 11-20 0.25%
(0.50% maximum) Policy Years 21+ 0.00% (0.50% maximum)
(i)Policy years 1-15 0.85% (maximum and current) Policy years 16+ 0.00%
(0.85% maximum) For policies with the ENLG rider, there is an additional
charge of 0.15% deducted while the rider is in effect.
(j)Policy years 1-15 0.55% (maximum and current) Policy years 16+ 0.05%
(0.55% maximum) For policies with the ENLG rider, there is an additional
charge of 0.70% deducted until age 100 of the younger insured.
(k)Policy years 1-10 0.15% (0.50% maximum); however, 0.35% (0.50% maximum) of
any account value allocated to MSO segments. Policy years 11+ 0.10% (0.35%
maximum)
(l)For policies with MSO, there is an additional charge of 1.40% (2.40%
maximum) of any policy account value allocated to each segment.
(m)Policy year 1-15 0.90% (maximum and current) Policy year 16+ 0.60% or
0.30% depending (0.90% maximum)
(n)Charged to daily net assets of the Account for all investment options
except MSO. However, for any account value allocated to MSO segments, the
M & E is charged to Contract owners Account.
(o)Policy years 1-8 0.60% (current) Policy years 1-10 1.00% (maximum) Policy
years 9+ 0.00% (current) Policy years 11+ 0.50% (maximum)
The Accumulator Life Program utilizes two insurance products -- a single
premium fixed annuity contract and a flexible premium variable life
insurance policy. The Program is designed to provide a simple method to
purchase a variable life insurance policy with a single purchase payment.
The Accumulator Life mortality and expense guaranteed risk charges are 0.71%
to 1.46% in years 1 to 10 and 0.30% to 0.50% in years 11 and beyond. The
current mortality and expense risk charges are lower than the guaranteed
charges. The highest current charge is 1.21%. Beginning in year 11, the
current rates are scheduled to decrease further. As Accumulator Life was
first offered in
FSA-114
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Continued)
2004, future decreases have not yet taken effect. The Accumulator Life
guaranteed administrative charges vary in years 1 to 10 from 0.72% to 1.73%
of the Policy Account Value, depending on age, sex, and class. The current
and guaranteed basis charges are equal. Beginning in policy year 11 the
administrative rates are guaranteed to decrease. The Accumulator Life
current cost of insurance charges vary in years 1 to 10 from 1.27% to 2.42%
of the greater of (1) the Policy Account Value and (2) the Mortality Charge
Base (accumulation of the 7-pay premiums due, up to that time at 4%),
depending on the age, sex, and class. Beginning in policy year 11 the
current cost of insurance charges decrease on a current basis. The cost of
insurance charge is capped at the guaranteed cost of insurance rate times
the Net Amount of Risk.
The Incentive Life '02 mortality and expense risk charge of 0.80%, 0.70% or
0.60% will be in effect for the first 15 policy years depending upon the
value of the Contractowner's Variable Investment Options. For policy years
16 and later the charge is currently 0.30% or 0.20%, depending upon the
value of the Contractowner's Variable Investment Options. The Survivorship
Incentive Life '02 mortality and expense risk charge of 0.90% will be in
effect for the first 15 policy years. For policy years 16 and later the
charge is currently 0.60% and 0.30% depending upon the value of the
Contractowner's Variable Investment Options. The current mortality and
expense risk charges are lower than guaranteed charges.
The Incentive Life Legacy mortality and expense risk charge of 1.75% will be
in effect for the first ten policy years on a current and guaranteed basis.
For policy years 11-20, the charge is currently 0.25% and for policy years
21 and later, it is 0.00%. In policy years 11 and later the current
mortality and expense risk charges are lower than guaranteed charges.
The Incentive Life '06, Incentive Life(R) Optimizer and Incentive Life
Optimizer II mortality and expense risk charge of 0.85% will be in effect
for the first eight policy years on a current basis. For policy years 9 and
later, no charge is deducted on a current basis. The current mortality and
expense risk charges are lower than the guaranteed charges.
The Incentive Life Optimizer III mortality and expense risk charge of 0.60%
will be in effect for the first eight policy years on a current basis. For
policy years 9 and later, no charge is deducted on a current basis. The
current mortality and expense risk charges are lower than the guaranteed
charges.
The Incentive Life Legacy II and Incentive Life Legacy III mortality and
expense risk charge of 0.85% will be in effect for the first fifteen policy
years on a current basis. For policy years 16 and later, no charge is
deducted on a current basis. The current mortality and expense risk charges
for policy years 16 and later are lower than the guaranteed charges.
The Survivorship Incentive Life(R) Legacy mortality and expense risk charge
of 0.55% will be in effect for the first fifteen policy years. For policy
years sixteen and later the charge is currently 0.05%. The current mortality
and expense risk charges are lower than the guaranteed charges. For policies
with the ENLG rider, there is an additional charge of 0.70% deducted until
age 100 of the younger insured.
The Corporate Owned Incentive Life(R) mortality and expense risk charge of
0.15% (0.35% of any account value allocated to MSO segments) will be in
effect for the first ten policy years on a current basis. For policy years
11 and later, the charge will be 0.10% on a current basis. The current
mortality and expense risk charges are lower than the guaranteed charges.
For IL 2000, IL Plus, IL Plus Original Series, IL 99, IL Optimizer, IL
Optimizer II, IL Legacy II, IL Legacy III, IL Optimizer III and Corporate
Owned Incentive Life(R) policies, there is an additional charge of 1.40% of
any policy account value allocated to each segment of the Market Stabilizer
Option on a current basis. The current percentage charge for MSO is lower
than the guaranteed charge.
Before amounts are remitted to the Account for Incentive Life, IL Plus
Original Series, IL Protector, Incentive Life Plus, Incentive Life COLI,
Incentive Life COLI '04, Corporate Owned Incentive Life, and the Series 2000
Policies, AXA Equitable deducts a charge for taxes and either an initial
policy fee (Incentive Life) or a premium charge (Incentive Life Plus,
Survivorship Incentive Life 1999, Survivorship Incentive Life '02, Incentive
Life 1999, Incentive Life '02, Incentive Life '06, Incentive Life Legacy,
Paramount Life, IL Protector, Incentive Life COLI '04, IL Optimizer, IL
Optimizer II, SIL Legacy, IL Legacy II, IL Legacy III, Corporate Owned
Incentive Life, and Series 2000 Policies) from premiums.
Under SP-Flex, the entire initial premium is allocated to the Account.
Before any additional premiums under SP-Flex are allocated to the Account,
however, an administrative charge is deducted.
FSA-115
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Concluded)
Contractowners' accounts are assessed monthly by AXA Equitable for mortality
cost of insurance and optional rider benefit charges and administrative
charges. SP-Flex mortality and expense and administrative charges are
deducted daily. These charges are withdrawn from the Accounts along with
amounts for additional benefits and are included in Transfers for contract
benefits and terminations and Contract maintenance charges. Policy loans are
reported in the Statements of Changes in Net Assets, in Transfers between
Variable Investment Options including guaranteed interest account, net.
Surrenders are included in the Transfers for contract benefits and
terminations.
The table below lists all the fees charged by the Separate Account assessed
as a redemption of units (except for those deducted from premium as noted);
the range presented represents the fees that are actually assessed. Actual
amounts may vary or may be zero depending on the Contract, election of
riders, or Contractowner's account value. These charges are reflected as
part of "Contractowners Transactions" in the Statement of Changes in Net
Assets.
WHEN CHARGE
CHARGES IS DEDUCTED AMOUNT DEDUCTED HOW DEDUCTED
------- ----------- --------------- ------------
Riders Monthly Amount varies depending on the Unit liquidation from
specifics of your policy. Depending on account value
the rider, may be additional charges
deducted from premiums and upon
exercise of a policy continuation
benefit.
Death Benefit Guarantee (Guaranteed Monthly LOW - $0.01 for each $1,000 of face Unit liquidation from
Minimum Death Benefit Charge) amount of the policy account value
HIGH - $0.02 for each $1,000 of face
amount of the policy
Charge for State and Local Tax Expense At time of premium Varies by state of residence of insured Deducted from premium
payment person.
Charge for Federal Tax Expenses At time of premium 1.25% Deducted from premium
payment
Premium Charge At time of premium Depending on the policy, varies from a Deducted from premium
payment flat fee of $2 to $250 to a range of
2.25% to 30% of premiums
Monthly administrative charges Monthly LOW - $8 per month Unit liquidation from
HIGH - Depending on face amount, account value
policyholder age at issue and policy
year, up to $55 per month. Depending on
the policy, may also be a charge per
$1,000 of face amount ranging from
$0.03 to $0.70
Cost of Insurance (COI) and Rating Monthly Amount varies depending upon specifics Unit liquidation from
charge of policy. COI based upon amount at account value
risk. Rating Charge based upon face
amount of insurance.
Surrender, termination or decrease in At time of transaction The amount of surrender charges if Unit liquidation from
face amount of policy during the first applicable is set forth in your policy. account value
10 or 15 years depending on Contract
Partial Withdrawal At time of transaction $25 (or if less, 2% of the withdrawal), Unit liquidation from
if applicable account value
Increase in policy's face amount At time of transaction $1.50 for each $1,000 of the increase Unit liquidation from
(but not more than $250 in total), if account value
applicable
Administrative Surrender Charge At time of transaction $2 to $6 per 1,000 depending on issue Unit liquidation from
age which after the third year declines account value
if applicable Depending on the policy,
may also be a charge per policy ranging
from $450 to $540 which after the third
year declines
Transfers among investment options At time of transaction LOW - $25 after 12 transfers if Unit liquidation from
applicable account value
HIGH - $25 per transfer
|
FSA-116
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights
The ranges for the total return ratios and unit values correspond to the
product groupings that produced the lowest and highest expense ratios. The
lowest and the highest contract charge represents the annual contract
expenses consisting of mortality, expense risk, financial accounting and
other expenses, for each period indicated. This ratio includes only those
expenses that result in direct reduction to unit value. Charges made
directly to Contractowner account through the redemption of units and
expenses of the respective Portfolio have been excluded. The summary may not
reflect the minimum and maximum contract charges offered by the Company as
Contractowners may not have selected all available and applicable contract
options. Due to the timing of the introduction of new products into the
Variable Account, contract charges and related unit values and total returns
may fall outside of the ranges presented in the financial highlights.
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT CONVERTIBLE SECURITIES
2018 Lowest contract charge 0.00% Class B $ 12.19 -- -- -- (4.24)%
Highest contract charge 0.60% Class B $119.95 -- -- -- (4.83)%
All contract charges -- 21 $ 1,204 3.16% --
2017 Lowest contract charge 0.00% Class B $ 12.73 -- -- -- 14.27%
Highest contract charge 0.60% Class B $126.04 -- -- -- 13.59%
All contract charges -- 6 $ 605 9.59% --
2016 Lowest contract charge 0.00% Class B(c) $ 11.14 -- -- -- 10.08%
Highest contract charge 0.60% Class B(c) $110.96 -- -- -- 9.68%
All contract charges -- -- $ 9 9.66% --
1290 VT DOUBLELINE DYNAMIC ALLOCATION
2018 Lowest contract charge 0.00% Class B $118.12 -- -- -- (4.12)%
Highest contract charge 0.90% Class B $112.24 -- -- -- (4.99)%
All contract charges -- 179 $10,754 1.55% --
2017 Lowest contract charge 0.00% Class B $123.19 -- -- -- 9.61%
Highest contract charge 0.90% Class B $118.13 -- -- -- 8.64%
All contract charges -- 258 $12,307 0.61% --
2016 Lowest contract charge 0.00% Class B $112.39 -- -- -- 8.61%
Highest contract charge 0.90% Class B $108.74 -- -- -- 7.63%
All contract charges -- 190 $ 9,492 1.68% --
2015 Lowest contract charge 0.00% Class B $103.48 -- -- -- (3.72)%
Highest contract charge 0.90% Class B $101.03 -- -- -- (4.60)%
All contract charges -- 134 $ 5,897 1.31% --
2014 Lowest contract charge 0.00% Class B $107.48 -- -- -- 2.42%
Highest contract charge 0.90% Class B $105.90 -- -- -- 1.50%
All contract charges -- 28 $ 2,538 2.43% --
1290 VT DOUBLELINE OPPORTUNISTIC BOND
2018 Lowest contract charge 0.00% Class B(d) $101.17 -- -- -- (0.94)%
Highest contract charge 0.60% Class B(d) $100.17 -- -- -- (1.53)%
All contract charges -- 13 $ 607 3.81% --
2017 Lowest contract charge 0.00% Class B(d) $102.13 -- -- -- 1.58%
Highest contract charge 0.60% Class B(d) $101.73 -- -- -- 1.20%
All contract charges -- 3 $ 200 3.42% --
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class A $165.68 -- -- -- (11.69)%
Highest contract charge 0.90% Class A $149.05 -- -- -- (12.49)%
All contract charges -- 28 $ 4,388 2.01% --
2017 Lowest contract charge 0.00% Class A $187.61 -- -- -- 15.84%
Highest contract charge 0.90% Class A $170.32 -- -- -- 14.80%
All contract charges -- 32 $ 5,633 1.70% --
2016 Lowest contract charge 0.00% Class A $161.95 -- -- -- 12.98%
Highest contract charge 0.90% Class A $148.36 -- -- -- 11.97%
All contract charges -- 31 $ 4,827 1.96% --
2015 Lowest contract charge 0.00% Class A $143.34 -- -- -- (1.70)%
Highest contract charge 0.90% Class A $132.50 -- -- -- (2.59)%
All contract charges -- 33 $ 4,517 1.55% --
2014 Lowest contract charge 0.00% Class A $145.82 -- -- -- 8.67%
Highest contract charge 0.90% Class A $136.02 -- -- -- 7.70%
All contract charges -- 37 $ 5,222 1.56% --
|
FSA-117
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class B $228.29 -- -- -- (11.69)%
Highest contract charge 0.60% Class B $152.60 -- -- -- (12.22)%
All contract charges -- 70 $14,898 2.01% --
2017 Lowest contract charge 0.00% Class B $258.51 -- -- -- 15.84%
Highest contract charge 0.60% Class B $173.85 -- -- -- 15.15%
All contract charges -- 71 $17,017 1.70% --
2016 Lowest contract charge 0.00% Class B $223.16 -- -- -- 12.99%
Highest contract charge 0.60% Class B $150.98 -- -- -- 12.30%
All contract charges -- 73 $15,213 1.96% --
2015 Lowest contract charge 0.00% Class B $197.51 -- -- -- (1.70)%
Highest contract charge 0.60% Class B $134.44 -- -- -- (2.29)%
All contract charges -- 79 $14,262 1.55% --
2014 Lowest contract charge 0.00% Class B $200.93 -- -- -- 8.67%
Highest contract charge 0.60% Class B $137.59 -- -- -- 8.02%
All contract charges -- 82 $15,156 1.56% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
Highest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
All contract charges -- 29 $ 712 1.48% --
2017 Lowest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
Highest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
All contract charges -- 44 $ 988 0.17% --
2016 Lowest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
Highest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
All contract charges -- 18 $ 746 0.01% --
2015 Lowest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
Highest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
All contract charges -- 21 $ 699 0.00% --
2014 Lowest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
Highest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
All contract charges -- 17 $ 633 0.00% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class B $181.95 -- -- -- (4.91)%
Highest contract charge 0.90% Class B $131.24 -- -- -- (5.77)%
All contract charges -- 91 $14,377 1.48% --
2017 Lowest contract charge 0.00% Class B $191.34 -- -- -- 6.18%
Highest contract charge 0.90% Class B $139.27 -- -- -- 5.23%
All contract charges -- 93 $15,203 0.17% --
2016 Lowest contract charge 0.00% Class B $180.20 -- -- -- 7.69%
Highest contract charge 0.90% Class B $132.35 -- -- -- 6.73%
All contract charges -- 92 $14,108 0.01% --
2015 Lowest contract charge 0.00% Class B $167.33 -- -- -- 2.62%
Highest contract charge 0.90% Class B $124.01 -- -- -- 1.70%
All contract charges -- 96 $13,717 0.00% --
2014 Lowest contract charge 0.00% Class B $163.06 -- -- -- 1.64%
Highest contract charge 0.90% Class B $121.94 -- -- -- 0.73%
All contract charges -- 96 $13,401 0.00% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
Highest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
All contract charges -- 265 $ 7,034 0.55% --
2017 Lowest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
Highest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
All contract charges -- 196 $ 6,619 0.62% --
|
FSA-118
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT GAMCO SMALL COMPANY VALUE (CONTINUED)
2016 Lowest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
Highest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
All contract charges -- 177 $ 6,106 0.51% --
2015 Lowest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
Highest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
All contract charges -- 156 $ 4,668 0.53% --
2014 Lowest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
Highest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
All contract charges -- 105 $ 4,528 0.28% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class B $371.93 -- -- -- (15.58)%
Highest contract charge 0.90% Class B $218.55 -- -- -- (16.34)%
All contract charges -- 511 $155,857 0.55% --
2017 Lowest contract charge 0.00% Class B $440.57 -- -- -- 16.10%
Highest contract charge 0.90% Class B $261.25 -- -- -- 15.05%
All contract charges -- 532 $191,106 0.62% --
2016 Lowest contract charge 0.00% Class B $379.49 -- -- -- 23.27%
Highest contract charge 0.90% Class B $227.07 -- -- -- 22.17%
All contract charges -- 542 $166,766 0.51% --
2015 Lowest contract charge 0.00% Class B $307.85 -- -- -- (5.70)%
Highest contract charge 0.90% Class B $185.87 -- -- -- (6.55)%
All contract charges -- 566 $139,280 0.53% --
2014 Lowest contract charge 0.00% Class B $326.46 -- -- -- 3.07%
Highest contract charge 0.90% Class B $198.90 -- -- -- 2.14%
All contract charges -- 591 $151,989 0.28% --
1290 VT SMARTBETA EQUITY
2018 Lowest contract charge 0.00% Class B $ 11.84 -- -- -- (6.11)%
Highest contract charge 0.60% Class B $116.52 -- -- -- (6.66)%
All contract charges -- 63 $ 1,273 1.63% --
2017 Lowest contract charge 0.00% Class B $ 12.61 -- -- -- 21.72%
Highest contract charge 0.60% Class B $124.83 -- -- -- 20.99%
All contract charges -- 21 $ 598 1.84% --
2016 Lowest contract charge 0.00% Class B(c) $ 10.36 -- -- -- 3.81%
Highest contract charge 0.60% Class B(c) $103.17 -- -- -- 3.41%
All contract charges -- 13 $ 181 2.62% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
Highest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
All contract charges -- 1 $ 273 0.98% --
2017 Lowest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
Highest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
All contract charges -- 1 $ 308 1.04% --
2016 Lowest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
Highest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
All contract charges -- 1 $ 201 1.28% --
2015 Lowest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
Highest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
All contract charges -- 1 $ 216 1.07% --
2014 Lowest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
Highest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
All contract charges -- 1 $ 177 0.84% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class B $205.36 -- -- -- (4.37)%
Highest contract charge 0.90% Class B $172.35 -- -- -- (5.23)%
All contract charges -- 12 $ 2,364 0.98% --
|
FSA-119
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT SOCIALLY RESPONSIBLE (CONTINUED)
2017 Lowest contract charge 0.00% Class B $214.75 -- -- -- 20.40%
Highest contract charge 0.90% Class B $181.87 -- -- -- 19.32%
All contract charges -- 16 $ 3,042 1.04% --
2016 Lowest contract charge 0.00% Class B $178.36 -- -- -- 9.96%
Highest contract charge 0.90% Class B $152.42 -- -- -- 8.96%
All contract charges -- 14 $ 2,297 1.28% --
2015 Lowest contract charge 0.00% Class B $162.21 -- -- -- 0.48%
Highest contract charge 0.90% Class B $139.88 -- -- -- (0.43)%
All contract charges -- 11 $ 1,624 1.07% --
2014 Lowest contract charge 0.00% Class B $161.44 -- -- -- 13.61%
Highest contract charge 0.80% Class B $142.67 -- -- -- 12.70%
All contract charges -- 9 $ 1,403 0.84% --
ALL ASSET GROWTH-ALT 20(E)
2018 Lowest contract charge 0.00% Class B $153.87 -- -- -- (7.56)%
Highest contract charge 0.90% Class B $142.24 -- -- -- (8.39)%
All contract charges -- 270 $29,859 1.97% --
2017 Lowest contract charge 0.00% Class B $166.45 -- -- -- 15.90%
Highest contract charge 0.90% Class B $155.27 -- -- -- 14.85%
All contract charges -- 251 $28,921 1.62% --
2016 Lowest contract charge 0.00% Class B $143.62 -- -- -- 9.57%
Highest contract charge 0.90% Class B $135.19 -- -- -- 8.58%
All contract charges -- 158 $19,692 1.36% --
2015 Lowest contract charge 0.00% Class B $131.08 -- -- -- (3.96)%
Highest contract charge 0.90% Class B $124.51 -- -- -- (4.82)%
All contract charges -- 136 $17,513 0.84% --
2014 Lowest contract charge 0.00% Class B $136.49 -- -- -- 2.39%
Highest contract charge 0.90% Class B $130.82 -- -- -- 1.47%
All contract charges -- 131 $17,621 1.53% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /GLOBAL
SMALL CAPITALIZATION FUND/SM /
2018 Lowest contract charge 0.00% Class 4 $130.88 -- -- -- (10.81)%
Highest contract charge 0.90% Class 4 $124.37 -- -- -- (11.61)%
All contract charges -- 115 $ 8,267 0.02% --
2017 Lowest contract charge 0.00% Class 4 $146.74 -- -- -- 25.62%
Highest contract charge 0.90% Class 4 $140.71 -- -- -- 24.50%
All contract charges -- 69 $ 7,356 0.38% --
2016 Lowest contract charge 0.00% Class 4 $116.81 -- -- -- 1.85%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.93%
All contract charges -- 47 $ 4,107 0.11% --
2015 Lowest contract charge 0.00% Class 4 $114.69 -- -- -- (0.02)%
Highest contract charge 0.90% Class 4 $111.98 -- -- -- (0.92)%
All contract charges -- 43 $ 3,590 0.00% --
2014 Lowest contract charge 0.00% Class 4 $114.71 -- -- -- 1.88%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.96%
All contract charges -- 25 $ 1,829 0.08% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /
2018 Lowest contract charge 0.00% Class 4 $110.32 -- -- -- (14.25)%
Highest contract charge 0.90% Class 4 $104.83 -- -- -- (15.03)%
All contract charges -- 404 $19,113 0.82% --
2017 Lowest contract charge 0.00% Class 4 $128.66 -- -- -- 29.06%
Highest contract charge 0.90% Class 4 $123.37 -- -- -- 27.90%
All contract charges -- 222 $12,711 0.87% --
2016 Lowest contract charge 0.00% Class 4 $ 99.69 -- -- -- 5.05%
Highest contract charge 0.90% Class 4 $ 96.46 -- -- -- 4.10%
All contract charges -- 172 $ 7,858 0.69% --
|
FSA-120
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /(CONTINUED)
2015 Lowest contract charge 0.00% Class 4 $ 94.90 -- -- -- (3.38)%
Highest contract charge 0.90% Class 4 $ 92.66 -- -- -- (4.24)%
All contract charges -- 139 $ 6,032 0.57% --
2014 Lowest contract charge 0.00% Class 4 $ 98.22 -- -- -- (8.13)%
Highest contract charge 0.90% Class 4 $ 96.76 -- -- -- (8.97)%
All contract charges -- 88 $ 3,904 1.51% --
AXA 400 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $191.95 -- -- -- (12.27)%
Highest contract charge 0.90% Class B $177.44 -- -- -- (13.06)%
All contract charges -- 23 $ 4,405 0.93% --
2017 Lowest contract charge 0.00% Class B $218.79 -- -- -- 15.23%
Highest contract charge 0.90% Class B $204.10 -- -- -- 14.19%
All contract charges -- 25 $ 5,413 0.80% --
2016 Lowest contract charge 0.00% Class B $189.88 -- -- -- 19.68%
Highest contract charge 0.90% Class B $178.74 -- -- -- 18.61%
All contract charges -- 23 $ 4,246 0.87% --
2015 Lowest contract charge 0.00% Class B $158.65 -- -- -- (3.11)%
Highest contract charge 0.90% Class B $150.69 -- -- -- (3.98)%
All contract charges -- 20 $ 3,160 0.54% --
2014 Lowest contract charge 0.00% Class B $163.75 -- -- -- 8.80%
Highest contract charge 0.90% Class B $156.94 -- -- -- 7.82%
All contract charges -- 19 $ 3,065 0.39% --
AXA 500 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.17 -- -- -- (6.06)%
Highest contract charge 0.90% Class B $197.98 -- -- -- (6.91)%
All contract charges -- 49 $10,225 1.16% --
2017 Lowest contract charge 0.00% Class B $227.98 -- -- -- 20.75%
Highest contract charge 0.90% Class B $212.68 -- -- -- 19.67%
All contract charges -- 43 $ 9,743 1.24% --
2016 Lowest contract charge 0.00% Class B $188.80 -- -- -- 11.03%
Highest contract charge 0.90% Class B $177.72 -- -- -- 10.03%
All contract charges -- 37 $ 6,887 1.27% --
2015 Lowest contract charge 0.00% Class B $170.05 -- -- -- 0.37%
Highest contract charge 0.90% Class B $161.52 -- -- -- (0.54)%
All contract charges -- 34 $ 5,680 0.91% --
2014 Lowest contract charge 0.00% Class B $169.43 -- -- -- 12.59%
Highest contract charge 0.90% Class B $162.40 -- -- -- 11.58%
All contract charges -- 33 $ 5,576 0.80% --
AXA 2000 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $179.09 -- -- -- (11.92)%
Highest contract charge 0.90% Class B $165.56 -- -- -- (12.71)%
All contract charges -- 24 $ 4,137 0.77% --
2017 Lowest contract charge 0.00% Class B $203.32 -- -- -- 13.85%
Highest contract charge 0.90% Class B $189.67 -- -- -- 12.84%
All contract charges -- 23 $ 4,480 0.78% --
2016 Lowest contract charge 0.00% Class B $178.58 -- -- -- 20.53%
Highest contract charge 0.90% Class B $168.09 -- -- -- 19.44%
All contract charges -- 18 $ 3,289 0.82% --
2015 Lowest contract charge 0.00% Class B $148.16 -- -- -- (5.10)%
Highest contract charge 0.90% Class B $140.73 -- -- -- (5.95)%
All contract charges -- 15 $ 2,284 0.39% --
2014 Lowest contract charge 0.00% Class B $156.13 -- -- -- 4.06%
Highest contract charge 0.90% Class B $149.64 -- -- -- 3.11%
All contract charges -- 17 $ 2,546 0.16% --
|
FSA-121
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $240.35 -- -- -- (8.72)%
Highest contract charge 0.90% Class A $209.40 -- -- -- (9.54)%
All contract charges -- 310 $56,672 1.56% --
2017 Lowest contract charge 0.00% Class A $263.30 -- -- -- 19.10%
Highest contract charge 0.90% Class A $231.49 -- -- -- 18.03%
All contract charges -- 302 $63,917 1.51% --
2016 Lowest contract charge 0.00% Class A $221.08 -- -- -- 8.79%
Highest contract charge 0.90% Class A $196.13 -- -- -- 7.81%
All contract charges -- 306 $56,824 0.94% --
2015 Lowest contract charge 0.00% Class A $203.22 -- -- -- (1.75)%
Highest contract charge 0.90% Class A $181.92 -- -- -- (2.64)%
All contract charges -- 344 $57,423 0.95% --
2014 Lowest contract charge 0.00% Class A $206.85 -- -- -- 4.72%
Highest contract charge 0.90% Class A $186.85 -- -- -- 3.78%
All contract charges -- 344 $63,147 1.55% --
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $235.46 -- -- -- (8.72)%
Highest contract charge 0.60% Class B $214.81 -- -- -- (9.27)%
All contract charges -- 340 $79,240 1.56% --
2017 Lowest contract charge 0.00% Class B $257.94 -- -- -- 19.10%
Highest contract charge 0.60% Class B $236.75 -- -- -- 18.39%
All contract charges -- 362 $92,369 1.51% --
2016 Lowest contract charge 0.00% Class B $216.58 -- -- -- 8.78%
Highest contract charge 0.60% Class B $199.98 -- -- -- 8.13%
All contract charges -- 373 $79,996 0.94% --
2015 Lowest contract charge 0.00% Class B $199.09 -- -- -- (1.75)%
Highest contract charge 0.60% Class B $184.94 -- -- -- (2.34)%
All contract charges -- 392 $77,349 0.95% --
2014 Lowest contract charge 0.00% Class B $202.64 -- -- -- 4.72%
Highest contract charge 0.60% Class B $189.38 -- -- -- 4.09%
All contract charges -- 396 $79,584 1.55% --
AXA BALANCED STRATEGY
2018 Lowest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
Highest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
All contract charges -- 246 $38,340 1.27% --
2017 Lowest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
Highest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
All contract charges -- 225 $36,558 1.43% --
2016 Lowest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
Highest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
All contract charges -- 188 $27,793 0.89% --
2015 Lowest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
Highest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
All contract charges -- 173 $24,207 1.09% --
2014 Lowest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
Highest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
All contract charges -- 141 $19,802 1.21% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $162.27 -- -- -- (1.57)%
Highest contract charge 0.90% Class A $141.38 -- -- -- (2.45)%
All contract charges -- 256 $19,839 1.52% --
2017 Lowest contract charge 0.00% Class A $164.85 -- -- -- 4.95%
Highest contract charge 0.90% Class A $144.93 -- -- -- 4.00%
All contract charges -- 253 $21,414 1.07% --
|
FSA-122
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE ALLOCATION (CONTINUED)
2016 Lowest contract charge 0.00% Class A $157.07 -- -- -- 2.92%
Highest contract charge 0.90% Class A $139.35 -- -- -- 2.01%
All contract charges -- 270 $22,880 0.94% --
2015 Lowest contract charge 0.00% Class A $152.61 -- -- -- (0.24)%
Highest contract charge 0.90% Class A $136.61 -- -- -- (1.14)%
All contract charges -- 284 $24,201 0.79% --
2014 Lowest contract charge 0.00% Class A $152.98 -- -- -- 2.62%
Highest contract charge 0.90% Class A $138.19 -- -- -- 1.69%
All contract charges -- 288 $25,804 0.83% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $158.96 -- -- -- (1.56)%
Highest contract charge 0.60% Class B $145.02 -- -- -- (2.16)%
All contract charges -- 47 $ 7,355 1.52% --
2017 Lowest contract charge 0.00% Class B $161.48 -- -- -- 4.95%
Highest contract charge 0.60% Class B $148.22 -- -- -- 4.32%
All contract charges -- 46 $ 7,209 1.07% --
2016 Lowest contract charge 0.00% Class B $153.87 -- -- -- 2.92%
Highest contract charge 0.60% Class B $142.08 -- -- -- 2.31%
All contract charges -- 58 $ 8,706 0.94% --
2015 Lowest contract charge 0.00% Class B $149.50 -- -- -- (0.24)%
Highest contract charge 0.60% Class B $138.87 -- -- -- (0.84)%
All contract charges -- 61 $ 8,855 0.79% --
2014 Lowest contract charge 0.00% Class B $149.86 -- -- -- 2.62%
Highest contract charge 0.60% Class B $140.05 -- -- -- 2.00%
All contract charges -- 71 $10,374 0.83% --
AXA CONSERVATIVE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
Highest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
All contract charges -- 48 $ 7,082 1.21% --
2017 Lowest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
Highest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
All contract charges -- 49 $ 7,439 1.29% --
2016 Lowest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
Highest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
All contract charges -- 44 $ 6,162 0.90% --
2015 Lowest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
Highest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
All contract charges -- 41 $ 5,539 0.95% --
2014 Lowest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
Highest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
All contract charges -- 40 $ 5,395 1.11% --
AXA CONSERVATIVE STRATEGY
2018 Lowest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
Highest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
All contract charges -- 23 $ 2,969 1.31% --
2017 Lowest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
Highest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
All contract charges -- 20 $ 2,656 1.02% --
2016 Lowest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
Highest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
All contract charges -- 22 $ 2,805 0.85% --
2015 Lowest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
Highest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
All contract charges -- 20 $ 2,427 0.94% --
2014 Lowest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
Highest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
All contract charges -- 16 $ 1,930 0.86% --
|
FSA-123
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $181.08 -- -- -- (3.64)%
Highest contract charge 0.90% Class A $157.76 -- -- -- (4.52)%
All contract charges -- 209 $ 16,289 1.47% --
2017 Lowest contract charge 0.00% Class A $187.93 -- -- -- 8.83%
Highest contract charge 0.90% Class A $165.22 -- -- -- 7.84%
All contract charges -- 174 $ 17,822 1.21% --
2016 Lowest contract charge 0.00% Class A $172.69 -- -- -- 4.73%
Highest contract charge 0.90% Class A $153.21 -- -- -- 3.79%
All contract charges -- 148 $ 17,374 0.90% --
2015 Lowest contract charge 0.00% Class A $164.89 -- -- -- (0.66)%
Highest contract charge 0.90% Class A $147.61 -- -- -- (1.55)%
All contract charges -- 164 $ 17,659 0.82% --
2014 Lowest contract charge 0.00% Class A $165.98 -- -- -- 3.16%
Highest contract charge 0.90% Class A $149.93 -- -- -- 2.23%
All contract charges -- 179 $ 19,858 0.99% --
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $177.40 -- -- -- (3.64)%
Highest contract charge 0.60% Class B $161.84 -- -- -- (4.23)%
All contract charges -- 77 $ 13,374 1.47% --
2017 Lowest contract charge 0.00% Class B $184.11 -- -- -- 8.82%
Highest contract charge 0.60% Class B $168.98 -- -- -- 8.17%
All contract charges -- 82 $ 14,766 1.21% --
2016 Lowest contract charge 0.00% Class B $169.18 -- -- -- 4.73%
Highest contract charge 0.60% Class B $156.22 -- -- -- 4.11%
All contract charges -- 87 $ 14,529 0.90% --
2015 Lowest contract charge 0.00% Class B $161.54 -- -- -- (0.65)%
Highest contract charge 0.60% Class B $150.06 -- -- -- (1.24)%
All contract charges -- 90 $ 14,346 0.82% --
2014 Lowest contract charge 0.00% Class B $162.60 -- -- -- 3.16%
Highest contract charge 0.60% Class B $151.95 -- -- -- 2.54%
All contract charges -- 94 $ 15,106 0.99% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
Highest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
All contract charges -- 77 $ 26,261 1.02% --
2017 Lowest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
Highest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
All contract charges -- 67 $ 31,741 1.07% --
2016 Lowest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
Highest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
All contract charges -- 68 $ 27,405 0.91% --
2015 Lowest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
Highest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
All contract charges -- 74 $ 28,446 0.88% --
2014 Lowest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
Highest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
All contract charges -- 106 $ 31,716 0.95% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $309.60 -- -- -- (12.16)%
Highest contract charge 0.90% Class B $255.21 -- -- -- (12.96)%
All contract charges -- 329 $ 93,820 1.02% --
2017 Lowest contract charge 0.00% Class B $352.45 -- -- -- 26.08%
Highest contract charge 0.90% Class B $293.20 -- -- -- 24.95%
All contract charges -- 359 $116,782 1.07% --
|
FSA-124
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA GLOBAL EQUITY MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $279.54 -- -- -- 4.48%
Highest contract charge 0.90% Class B $234.65 -- -- -- 3.54%
All contract charges -- 398 $102,881 0.91% --
2015 Lowest contract charge 0.00% Class B $267.56 -- -- -- (1.73)%
Highest contract charge 0.90% Class B $226.63 -- -- -- (2.61)%
All contract charges -- 441 $110,066 0.88% --
2014 Lowest contract charge 0.00% Class B $272.26 -- -- -- 1.68%
Highest contract charge 0.90% Class B $232.70 -- -- -- 0.77%
All contract charges -- 478 $121,576 0.95% --
AXA GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
Highest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
All contract charges -- 332 $ 58,504 1.22% --
2017 Lowest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
Highest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
All contract charges -- 330 $ 62,041 1.57% --
2016 Lowest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
Highest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
All contract charges -- 304 $ 50,167 0.98% --
2015 Lowest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
Highest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
All contract charges -- 279 $ 42,615 1.25% --
2014 Lowest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
Highest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
All contract charges -- 223 $ 34,422 1.64% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $236.86 -- -- -- (14.89)%
Highest contract charge 0.60% Class A $168.13 -- -- -- (15.40)%
All contract charges -- 53 $ 12,380 1.72% --
2017 Lowest contract charge 0.00% Class A $278.29 -- -- -- 26.30%
Highest contract charge 0.60% Class A $198.73 -- -- -- 25.54%
All contract charges -- 56 $ 15,408 1.64% --
2016 Lowest contract charge 0.00% Class A $220.34 -- -- -- 0.22%
Highest contract charge 0.60% Class A $158.30 -- -- -- (0.37)%
All contract charges -- 61 $ 13,351 0.29% --
2015 Lowest contract charge 0.00% Class A $219.85 -- -- -- (4.35)%
Highest contract charge 0.60% Class A $158.89 -- -- -- (4.92)%
All contract charges -- 66 $ 14,331 0.06% --
2014 Lowest contract charge 0.00% Class A $229.84 -- -- -- (6.24)%
Highest contract charge 0.60% Class A $167.11 -- -- -- (6.80)%
All contract charges -- 71 $ 16,150 1.75% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $153.51 -- -- -- (14.89)%
Highest contract charge 0.90% Class B $128.46 -- -- -- (15.66)%
All contract charges -- 271 $ 38,842 1.72% --
2017 Lowest contract charge 0.00% Class B $180.36 -- -- -- 26.31%
Highest contract charge 0.90% Class B $152.31 -- -- -- 25.17%
All contract charges -- 282 $ 47,837 1.64% --
2016 Lowest contract charge 0.00% Class B $142.79 -- -- -- 0.21%
Highest contract charge 0.90% Class B $121.68 -- -- -- (0.69)%
All contract charges -- 336 $ 45,006 0.29% --
2015 Lowest contract charge 0.00% Class B $142.49 -- -- -- (4.34)%
Highest contract charge 0.90% Class B $122.52 -- -- -- (5.21)%
All contract charges -- 345 $ 46,054 0.06% --
2014 Lowest contract charge 0.00% Class B $148.95 -- -- -- (6.24)%
Highest contract charge 0.90% Class B $129.25 -- -- -- (7.08)%
All contract charges -- 381 $ 53,327 1.75% --
|
FSA-125
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA INTERNATIONAL MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $120.70 -- -- -- (14.45)%
Highest contract charge 0.90% Class B $111.58 -- -- -- (15.22)%
All contract charges -- 29 $ 3,515 1.95% --
2017 Lowest contract charge 0.00% Class B $141.09 -- -- -- 24.25%
Highest contract charge 0.90% Class B $131.61 -- -- -- 23.13%
All contract charges -- 25 $ 3,558 2.29% --
2016 Lowest contract charge 0.00% Class B $113.55 -- -- -- (0.12)%
Highest contract charge 0.90% Class B $106.89 -- -- -- (1.01)%
All contract charges -- 21 $ 2,386 1.26% --
2015 Lowest contract charge 0.00% Class B $113.69 -- -- -- (2.40)%
Highest contract charge 0.90% Class B $107.98 -- -- -- (3.29)%
All contract charges -- 17 $ 1,908 0.04% --
2014 Lowest contract charge 0.00% Class B $116.49 -- -- -- (6.44)%
Highest contract charge 0.90% Class B $111.65 -- -- -- (7.28)%
All contract charges -- 15 $ 1,627 0.79% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $223.17 -- -- -- (16.49)%
Highest contract charge 0.60% Class A $156.54 -- -- -- (16.99)%
All contract charges -- 99 $14,835 1.72% --
2017 Lowest contract charge 0.00% Class A $267.24 -- -- -- 23.37%
Highest contract charge 0.60% Class A $188.59 -- -- -- 22.64%
All contract charges -- 102 $18,250 1.90% --
2016 Lowest contract charge 0.00% Class A $216.61 -- -- -- 0.74%
Highest contract charge 0.60% Class A $153.78 -- -- -- 0.14%
All contract charges -- 102 $15,640 0.47% --
2015 Lowest contract charge 0.00% Class A $215.01 -- -- -- (3.16)%
Highest contract charge 0.60% Class A $153.56 -- -- -- (3.74)%
All contract charges -- 105 $16,190 0.10% --
2014 Lowest contract charge 0.00% Class A $222.03 -- -- -- (7.18)%
Highest contract charge 0.60% Class A $159.53 -- -- -- (7.74)%
All contract charges -- 108 $17,611 1.58% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $163.14 -- -- -- (16.49)%
Highest contract charge 0.90% Class B $150.30 -- -- -- (17.24)%
All contract charges -- 325 $52,099 1.72% --
2017 Lowest contract charge 0.00% Class B $195.36 -- -- -- 23.37%
Highest contract charge 0.90% Class B $181.62 -- -- -- 22.27%
All contract charges -- 348 $66,766 1.90% --
2016 Lowest contract charge 0.00% Class B $158.35 -- -- -- 0.74%
Highest contract charge 0.90% Class B $148.54 -- -- -- (0.16)%
All contract charges -- 377 $59,108 0.47% --
2015 Lowest contract charge 0.00% Class B $157.18 -- -- -- (3.16)%
Highest contract charge 0.90% Class B $148.78 -- -- -- (4.04)%
All contract charges -- 399 $62,376 0.10% --
2014 Lowest contract charge 0.00% Class B $162.31 -- -- -- (7.18)%
Highest contract charge 0.90% Class B $155.04 -- -- -- (8.01)%
All contract charges -- 428 $69,318 1.58% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $333.18 -- -- -- (6.42)%
Highest contract charge 0.60% Class A $229.45 -- -- -- (6.99)%
All contract charges -- 25 $ 4,358 1.04% --
2017 Lowest contract charge 0.00% Class A $356.05 -- -- -- 21.95%
Highest contract charge 0.60% Class A $246.69 -- -- -- 21.22%
All contract charges -- 22 $ 4,838 1.00% --
|
FSA-126
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP CORE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $291.96 -- -- -- 9.83%
Highest contract charge 0.60% Class A $203.50 -- -- -- 9.17%
All contract charges -- 20 $ 4,208 1.11% --
2015 Lowest contract charge 0.00% Class A $265.83 -- -- -- 0.37%
Highest contract charge 0.60% Class A $186.41 -- -- -- (0.23)%
All contract charges -- 19 $ 4,306 0.91% --
2014 Lowest contract charge 0.00% Class A $264.85 -- -- -- 11.62%
Highest contract charge 0.60% Class A $186.84 -- -- -- 10.95%
All contract charges -- 22 $ 5,334 1.12% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.54 -- -- -- (6.42)%
Highest contract charge 0.90% Class B $179.74 -- -- -- (7.27)%
All contract charges -- 113 $ 23,359 1.04% --
2017 Lowest contract charge 0.00% Class B $229.27 -- -- -- 21.95%
Highest contract charge 0.90% Class B $193.83 -- -- -- 20.86%
All contract charges -- 119 $ 26,273 1.00% --
2016 Lowest contract charge 0.00% Class B $188.00 -- -- -- 9.83%
Highest contract charge 0.90% Class B $160.38 -- -- -- 8.84%
All contract charges -- 127 $ 22,958 1.11% --
2015 Lowest contract charge 0.00% Class B $171.18 -- -- -- 0.38%
Highest contract charge 0.90% Class B $147.35 -- -- -- (0.53)%
All contract charges -- 133 $ 21,865 0.91% --
2014 Lowest contract charge 0.00% Class B $170.54 -- -- -- 11.62%
Highest contract charge 0.90% Class B $148.14 -- -- -- 10.62%
All contract charges -- 143 $ 23,572 1.12% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $450.72 -- -- -- (2.97)%
Highest contract charge 0.60% Class A $275.09 -- -- -- (3.56)%
All contract charges -- 113 $ 44,316 0.48% --
2017 Lowest contract charge 0.00% Class A $464.53 -- -- -- 29.22%
Highest contract charge 0.60% Class A $285.25 -- -- -- 28.44%
All contract charges -- 120 $ 49,729 0.49% --
2016 Lowest contract charge 0.00% Class A $359.50 -- -- -- 5.51%
Highest contract charge 0.60% Class A $222.08 -- -- -- 4.88%
All contract charges -- 128 $ 41,088 0.57% --
2015 Lowest contract charge 0.00% Class A $340.73 -- -- -- 4.04%
Highest contract charge 0.60% Class A $211.75 -- -- -- 3.41%
All contract charges -- 136 $ 41,909 0.28% --
2014 Lowest contract charge 0.00% Class A $327.51 -- -- -- 11.08%
Highest contract charge 0.60% Class A $204.77 -- -- -- 10.42%
All contract charges -- 149 $ 45,164 0.24% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $430.17 -- -- -- (2.98)%
Highest contract charge 0.90% Class B $353.64 -- -- -- (3.85)%
All contract charges -- 536 $199,280 0.48% --
2017 Lowest contract charge 0.00% Class B $443.36 -- -- -- 29.21%
Highest contract charge 0.90% Class B $367.81 -- -- -- 28.05%
All contract charges -- 585 $225,714 0.49% --
2016 Lowest contract charge 0.00% Class B $343.12 -- -- -- 5.51%
Highest contract charge 0.90% Class B $287.23 -- -- -- 4.57%
All contract charges -- 637 $191,238 0.57% --
2015 Lowest contract charge 0.00% Class B $325.20 -- -- -- 4.03%
Highest contract charge 0.90% Class B $274.69 -- -- -- 3.10%
All contract charges -- 695 $198,684 0.28% --
2014 Lowest contract charge 0.00% Class B $312.59 -- -- -- 11.09%
Highest contract charge 0.90% Class B $266.44 -- -- -- 10.09%
All contract charges -- 759 $209,579 0.24% --
|
FSA-127
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $287.53 -- -- -- (9.92)%
Highest contract charge 0.90% Class A $210.45 -- -- -- (10.74)%
All contract charges -- 996 $230,158 2.46% --
2017 Lowest contract charge 0.00% Class A $319.21 -- -- -- 13.86%
Highest contract charge 0.90% Class A $235.77 -- -- -- 12.84%
All contract charges -- 1,078 $278,428 1.52% --
2016 Lowest contract charge 0.00% Class A $280.36 -- -- -- 15.32%
Highest contract charge 0.90% Class A $208.95 -- -- -- 14.29%
All contract charges -- 1,164 $265,424 1.68% --
2015 Lowest contract charge 0.00% Class A $243.12 -- -- -- (4.02)%
Highest contract charge 0.90% Class A $182.83 -- -- -- (4.88)%
All contract charges -- 1,280 $254,701 1.58% --
2014 Lowest contract charge 0.00% Class A $253.29 -- -- -- 12.23%
Highest contract charge 0.90% Class A $192.21 -- -- -- 11.22%
All contract charges -- 1,383 $288,312 1.39% --
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.35 -- -- -- (9.93)%
Highest contract charge 0.90% Class B $207.72 -- -- -- (10.74)%
All contract charges -- 517 $113,399 2.46% --
2017 Lowest contract charge 0.00% Class B $237.97 -- -- -- 13.86%
Highest contract charge 0.90% Class B $232.71 -- -- -- 12.83%
All contract charges -- 559 $136,908 1.52% --
2016 Lowest contract charge 0.00% Class B $209.01 -- -- -- 15.32%
Highest contract charge 0.90% Class B $206.24 -- -- -- 14.29%
All contract charges -- 597 $129,323 1.68% --
2015 Lowest contract charge 0.00% Class B $181.24 -- -- -- (4.01)%
Highest contract charge 0.90% Class B $180.46 -- -- -- (4.88)%
All contract charges -- 653 $123,278 1.58% --
2014 Lowest contract charge 0.00% Class B $188.82 -- -- -- 12.23%
Highest contract charge 0.90% Class B $189.72 -- -- -- 11.22%
All contract charges -- 695 $137,376 1.39% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $374.40 -- -- -- (13.30)%
Highest contract charge 0.90% Class A $286.51 -- -- -- (14.08)%
All contract charges -- 510 $159,047 1.20% --
2017 Lowest contract charge 0.00% Class A $431.81 -- -- -- 12.32%
Highest contract charge 0.90% Class A $333.46 -- -- -- 11.31%
All contract charges -- 563 $201,795 1.04% --
2016 Lowest contract charge 0.00% Class A $384.44 -- -- -- 17.67%
Highest contract charge 0.90% Class A $299.57 -- -- -- 16.62%
All contract charges -- 611 $194,982 1.22% --
2015 Lowest contract charge 0.00% Class A $326.71 -- -- -- (3.54)%
Highest contract charge 0.90% Class A $256.88 -- -- -- (4.41)%
All contract charges -- 668 $183,118 0.75% --
2014 Lowest contract charge 0.00% Class A $338.70 -- -- -- 10.87%
Highest contract charge 0.90% Class A $268.73 -- -- -- 9.87%
All contract charges -- 728 $208,857 0.58% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
Highest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
All contract charges -- 35 $ 12,065 1.20% --
2017 Lowest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
Highest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
All contract charges -- 36 $ 14,423 1.04% --
|
FSA-128
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MID CAP VALUE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
Highest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
All contract charges -- 38 $ 13,464 1.22% --
2015 Lowest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
Highest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
All contract charges -- 39 $ 11,903 0.75% --
2014 Lowest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
Highest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
All contract charges -- 41 $ 12,879 0.58% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class A $393.57 -- -- -- (4.77)%
Highest contract charge 0.90% Class A $335.95 -- -- -- (5.63)%
All contract charges -- 1,323 $648,238 1.53% --
2017 Lowest contract charge 0.00% Class A $413.27 -- -- -- 11.05%
Highest contract charge 0.90% Class A $355.99 -- -- -- 10.05%
All contract charges -- 1,321 $738,975 1.22% --
2016 Lowest contract charge 0.00% Class A $372.16 -- -- -- 5.36%
Highest contract charge 0.90% Class A $323.48 -- -- -- 4.41%
All contract charges -- 1,344 $725,302 0.88% --
2015 Lowest contract charge 0.00% Class A $353.24 -- -- -- (0.88)%
Highest contract charge 0.90% Class A $309.81 -- -- -- (1.78)%
All contract charges -- 1,412 $757,108 0.81% --
2014 Lowest contract charge 0.00% Class A $356.38 -- -- -- 3.03%
Highest contract charge 0.90% Class A $315.41 -- -- -- 2.10%
All contract charges -- 1,531 $839,961 1.07% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class B $193.78 -- -- -- (4.77)%
Highest contract charge 0.60% Class B $175.85 -- -- -- (5.35)%
All contract charges -- 809 $151,465 1.53% --
2017 Lowest contract charge 0.00% Class B $203.48 -- -- -- 11.05%
Highest contract charge 0.60% Class B $185.78 -- -- -- 10.38%
All contract charges -- 790 $155,114 1.22% --
2016 Lowest contract charge 0.00% Class B $183.24 -- -- -- 5.36%
Highest contract charge 0.60% Class B $168.31 -- -- -- 4.73%
All contract charges -- 837 $148,117 0.88% --
2015 Lowest contract charge 0.00% Class B $173.92 -- -- -- (0.88)%
Highest contract charge 0.60% Class B $160.71 -- -- -- (1.48)%
All contract charges -- 890 $149,774 0.81% --
2014 Lowest contract charge 0.00% Class B $175.47 -- -- -- 3.03%
Highest contract charge 0.60% Class B $163.12 -- -- -- 2.41%
All contract charges -- 929 $157,713 1.07% --
AXA MODERATE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
Highest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
All contract charges -- 643 $106,743 1.23% --
2017 Lowest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
Highest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
All contract charges -- 626 $109,617 1.41% --
2016 Lowest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
Highest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
All contract charges -- 617 $ 96,610 0.95% --
2015 Lowest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
Highest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
All contract charges -- 565 $ 82,588 1.12% --
2014 Lowest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
Highest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
All contract charges -- 492 $ 72,534 1.31% --
|
FSA-129
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $222.44 -- -- -- (6.84)%
Highest contract charge 0.90% Class A $193.79 -- -- -- (7.68)%
All contract charges -- 1,190 $158,878 1.57% --
2017 Lowest contract charge 0.00% Class A $238.76 -- -- -- 14.89%
Highest contract charge 0.90% Class A $209.91 -- -- -- 13.86%
All contract charges -- 1,176 $189,691 1.39% --
2016 Lowest contract charge 0.00% Class A $207.81 -- -- -- 7.27%
Highest contract charge 0.90% Class A $184.35 -- -- -- 6.30%
All contract charges -- 1,173 $179,974 0.90% --
2015 Lowest contract charge 0.00% Class A $193.73 -- -- -- (1.29)%
Highest contract charge 0.90% Class A $173.42 -- -- -- (2.18)%
All contract charges -- 1,171 $181,984 0.89% --
2014 Lowest contract charge 0.00% Class A $196.26 -- -- -- 3.77%
Highest contract charge 0.90% Class A $177.28 -- -- -- 2.84%
All contract charges -- 1,235 $203,339 1.31% --
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $217.90 -- -- -- (6.84)%
Highest contract charge 0.60% Class B $198.79 -- -- -- (7.40)%
All contract charges -- 1,084 $233,271 1.57% --
2017 Lowest contract charge 0.00% Class B $233.89 -- -- -- 14.89%
Highest contract charge 0.60% Class B $214.67 -- -- -- 14.20%
All contract charges -- 1,158 $267,770 1.39% --
2016 Lowest contract charge 0.00% Class B $203.57 -- -- -- 7.27%
Highest contract charge 0.60% Class B $187.97 -- -- -- 6.63%
All contract charges -- 1,198 $241,006 0.90% --
2015 Lowest contract charge 0.00% Class B $189.77 -- -- -- (1.30)%
Highest contract charge 0.60% Class B $176.29 -- -- -- (1.88)%
All contract charges -- 1,228 $230,412 0.89% --
2014 Lowest contract charge 0.00% Class B $192.26 -- -- -- 3.77%
Highest contract charge 0.60% Class B $179.67 -- -- -- 3.15%
All contract charges -- 1,245 $236,907 1.31% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class A $508.91 -- -- -- (7.88)%
Highest contract charge 0.90% Class A $418.36 -- -- -- (8.71)%
All contract charges -- 394 $123,432 0.12% --
2017 Lowest contract charge 0.00% Class A $552.43 -- -- -- 22.67%
Highest contract charge 0.90% Class A $458.28 -- -- -- 21.57%
All contract charges -- 358 $142,467 0.27% --
2016 Lowest contract charge 0.00% Class A $450.34 -- -- -- 12.58%
Highest contract charge 0.90% Class A $376.97 -- -- -- 11.57%
All contract charges -- 377 $130,425 0.36% --
2015 Lowest contract charge 0.00% Class A $400.02 -- -- -- (2.91)%
Highest contract charge 0.90% Class A $337.88 -- -- -- (3.78)%
All contract charges -- 399 $126,365 0.05% --
2014 Lowest contract charge 0.00% Class A $412.00 -- -- -- 3.57%
Highest contract charge 0.90% Class A $351.16 -- -- -- 2.64%
All contract charges -- 422 $144,210 0.06% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $417.73 -- -- -- (7.88)%
Highest contract charge 0.60% Class B $331.02 -- -- -- (8.43)%
All contract charges -- 182 $ 62,991 0.12% --
2017 Lowest contract charge 0.00% Class B $453.45 -- -- -- 22.67%
Highest contract charge 0.60% Class B $361.51 -- -- -- 21.93%
All contract charges -- 189 $ 71,440 0.27% --
|
FSA-130
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/AB SMALL CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $369.65 -- -- -- 12.58%
Highest contract charge 0.60% Class B $296.48 -- -- -- 11.90%
All contract charges -- 204 $62,757 0.36% --
2015 Lowest contract charge 0.00% Class B $328.35 -- -- -- (2.91)%
Highest contract charge 0.60% Class B $264.94 -- -- -- (3.49)%
All contract charges -- 221 $60,376 0.05% --
2014 Lowest contract charge 0.00% Class B $338.19 -- -- -- 3.57%
Highest contract charge 0.60% Class B $274.53 -- -- -- 2.96%
All contract charges -- 236 $66,544 0.06% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
Highest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
All contract charges -- 96 $11,281 0.17% --
2017 Lowest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
Highest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
All contract charges -- 99 $12,081 0.08% --
2016 Lowest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
Highest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
All contract charges -- 120 $10,833 0.00% --
2015 Lowest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
Highest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
All contract charges -- 124 $11,612 0.00% --
2014 Lowest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
Highest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
All contract charges -- 121 $12,253 0.00% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class B $269.42 -- -- -- (0.35)%
Highest contract charge 0.90% Class B $226.20 -- -- -- (1.25)%
All contract charges -- 263 $65,342 0.17% --
2017 Lowest contract charge 0.00% Class B $270.36 -- -- -- 25.59%
Highest contract charge 0.90% Class B $229.06 -- -- -- 24.46%
All contract charges -- 276 $69,313 0.08% --
2016 Lowest contract charge 0.00% Class B $215.27 -- -- -- 0.88%
Highest contract charge 0.90% Class B $184.04 -- -- -- (0.02)%
All contract charges -- 310 $62,282 0.00% --
2015 Lowest contract charge 0.00% Class B $213.39 -- -- -- 1.27%
Highest contract charge 0.90% Class B $184.08 -- -- -- 0.35%
All contract charges -- 364 $72,486 0.00% --
2014 Lowest contract charge 0.00% Class B $210.71 -- -- -- 3.80%
Highest contract charge 0.90% Class B $183.43 -- -- -- 2.87%
All contract charges -- 419 $82,054 0.00% --
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class A $198.06 -- -- -- (1.79)%
Highest contract charge 0.90% Class A $178.18 -- -- -- (2.68)%
All contract charges -- 96 $18,250 0.00% --
2017 Lowest contract charge 0.00% Class A $201.67 -- -- -- 27.90%
Highest contract charge 0.90% Class A $183.08 -- -- -- 26.75%
All contract charges -- 109 $20,920 0.00% --
2016 Lowest contract charge 0.00% Class A $157.68 -- -- -- (4.33)%
Highest contract charge 0.90% Class A $144.44 -- -- -- (5.19)%
All contract charges -- 113 $17,115 0.00% --
2015 Lowest contract charge 0.00% Class A $164.82 -- -- -- (5.49)%
Highest contract charge 0.90% Class A $152.35 -- -- -- (6.34)%
All contract charges -- 129 $20,433 0.00% --
2014 Lowest contract charge 0.00% Class A $174.40 -- -- -- (0.71)%
Highest contract charge 0.90% Class A $162.67 -- -- -- (1.60)%
All contract charges -- 154 $25,987 0.00% --
|
FSA-131
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class B $286.64 -- -- -- (1.79)%
Highest contract charge 0.60% Class B $182.43 -- -- -- (2.38)%
All contract charges -- 104 $23,363 0.00% --
2017 Lowest contract charge 0.00% Class B $291.87 -- -- -- 27.90%
Highest contract charge 0.60% Class B $186.88 -- -- -- 27.14%
All contract charges -- 99 $25,171 0.00% --
2016 Lowest contract charge 0.00% Class B $228.20 -- -- -- (4.33)%
Highest contract charge 0.60% Class B $146.99 -- -- -- (4.90)%
All contract charges -- 102 $20,749 0.00% --
2015 Lowest contract charge 0.00% Class B $238.53 -- -- -- (5.49)%
Highest contract charge 0.60% Class B $154.57 -- -- -- (6.06)%
All contract charges -- 105 $22,021 0.00% --
2014 Lowest contract charge 0.00% Class B $252.39 -- -- -- (0.71)%
Highest contract charge 0.60% Class B $164.54 -- -- -- (1.31)%
All contract charges -- 109 $23,819 0.00% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class A $275.24 -- -- -- (2.98)%
Highest contract charge 0.90% Class A $247.62 -- -- -- (3.86)%
All contract charges -- 116 $14,806 0.09% --
2017 Lowest contract charge 0.00% Class A $283.70 -- -- -- 34.60%
Highest contract charge 0.90% Class A $257.56 -- -- -- 33.39%
All contract charges -- 90 $15,287 0.18% --
2016 Lowest contract charge 0.00% Class A $210.78 -- -- -- 6.82%
Highest contract charge 0.90% Class A $193.09 -- -- -- 5.85%
All contract charges -- 81 $10,978 0.34% --
2015 Lowest contract charge 0.00% Class A $197.33 -- -- -- 11.53%
Highest contract charge 0.90% Class A $182.41 -- -- -- 10.52%
All contract charges -- 56 $ 9,495 0.12% --
2014 Lowest contract charge 0.00% Class A $176.93 -- -- -- 7.81%
Highest contract charge 0.90% Class A $165.04 -- -- -- 6.85%
All contract charges -- 56 $ 8,450 0.11% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class B $336.10 -- -- -- (2.98)%
Highest contract charge 0.60% Class B $253.58 -- -- -- (3.57)%
All contract charges -- 78 $24,819 0.09% --
2017 Lowest contract charge 0.00% Class B $346.43 -- -- -- 34.59%
Highest contract charge 0.60% Class B $262.96 -- -- -- 33.78%
All contract charges -- 75 $24,456 0.18% --
2016 Lowest contract charge 0.00% Class B $257.40 -- -- -- 6.81%
Highest contract charge 0.60% Class B $196.56 -- -- -- 6.17%
All contract charges -- 75 $18,005 0.34% --
2015 Lowest contract charge 0.00% Class B $240.98 -- -- -- 11.52%
Highest contract charge 0.60% Class B $185.13 -- -- -- 10.86%
All contract charges -- 71 $15,923 0.12% --
2014 Lowest contract charge 0.00% Class B $216.08 -- -- -- 7.82%
Highest contract charge 0.60% Class B $167.00 -- -- -- 7.17%
All contract charges -- 76 $15,333 0.11% --
BLACKROCK GLOBAL ALLOCATION V.I. FUND
2018 Lowest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
Highest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
All contract charges -- 302 $ 5,434 1.04% --
2017 Lowest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
Highest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
All contract charges -- 193 $ 4,268 1.33% --
|
FSA-132
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
BLACKROCK GLOBAL ALLOCATION V.I. FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
Highest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
All contract charges -- 171 $ 4,445 0.69% --
2015 Lowest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
Highest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
All contract charges -- 203 $ 9,384 1.08% --
2014 Lowest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
Highest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
All contract charges -- 200 $ 9,833 2.50% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class A $238.57 -- -- -- (0.50)%
Highest contract charge 0.90% Class A $229.10 -- -- -- (1.40)%
All contract charges -- 212 $53,081 2.21% --
2017 Lowest contract charge 0.00% Class A $239.78 -- -- -- 2.24%
Highest contract charge 0.90% Class A $232.36 -- -- -- 1.32%
All contract charges -- 220 $57,442 1.58% --
2016 Lowest contract charge 0.00% Class A $234.53 -- -- -- 2.93%
Highest contract charge 0.90% Class A $229.34 -- -- -- 2.01%
All contract charges -- 252 $66,941 1.97% --
2015 Lowest contract charge 0.00% Class A $227.86 -- -- -- (0.64)%
Highest contract charge 0.90% Class A $224.83 -- -- -- (1.53)%
All contract charges -- 265 $70,209 1.52% --
2014 Lowest contract charge 0.00% Class A $229.33 -- -- -- 2.39%
Highest contract charge 0.90% Class A $228.33 -- -- -- 1.46%
All contract charges -- 286 $77,439 2.51% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class B $144.32 -- -- -- (0.50)%
Highest contract charge 0.60% Class B $110.73 -- -- -- (1.10)%
All contract charges -- 118 $14,419 2.21% --
2017 Lowest contract charge 0.00% Class B $145.05 -- -- -- 2.24%
Highest contract charge 0.60% Class B $111.96 -- -- -- 1.62%
All contract charges -- 126 $15,563 1.58% --
2016 Lowest contract charge 0.00% Class B $141.87 -- -- -- 2.93%
Highest contract charge 0.60% Class B $110.17 -- -- -- 2.31%
All contract charges -- 132 $15,824 1.97% --
2015 Lowest contract charge 0.00% Class B $137.83 -- -- -- (0.64)%
Highest contract charge 0.60% Class B $107.68 -- -- -- (1.24)%
All contract charges -- 136 $15,816 1.52% --
2014 Lowest contract charge 0.00% Class B $138.72 -- -- -- 2.38%
Highest contract charge 0.60% Class B $109.03 -- -- -- 1.77%
All contract charges -- 145 $16,903 2.51% --
CHARTER/SM /SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $230.14 -- -- -- (5.03)%
Highest contract charge 0.90% Class B $141.28 -- -- -- (5.89)%
All contract charges -- 62 $12,512 3.68% --
2017 Lowest contract charge 0.00% Class B $242.33 -- -- -- 24.36%
Highest contract charge 0.90% Class B $150.12 -- -- -- 23.24%
All contract charges -- 62 $13,055 2.72% --
2016 Lowest contract charge 0.00% Class B $194.86 -- -- -- 9.35%
Highest contract charge 0.90% Class B $121.81 -- -- -- 8.37%
All contract charges -- 63 $10,707 0.00% --
2015 Lowest contract charge 0.00% Class B $178.20 -- -- -- (6.04)%
Highest contract charge 0.90% Class B $112.40 -- -- -- (6.89)%
All contract charges -- 72 $11,024 0.27% --
|
FSA-133
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
CHARTER/SM /SMALL CAP GROWTH (CONTINUED)
2014 Lowest contract charge 0.00% Class B $189.66 -- -- -- (2.61)%
Highest contract charge 0.90% Class B $120.72 -- -- -- (3.49)%
All contract charges -- 73 $12,004 0.00% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class A $293.02 -- -- -- (12.98)%
Highest contract charge 0.60% Class A $267.34 -- -- -- (13.51)%
All contract charges -- 37 $10,770 1.15% --
2017 Lowest contract charge 0.00% Class A $336.73 -- -- -- 11.29%
Highest contract charge 0.60% Class A $309.09 -- -- -- 10.63%
All contract charges -- 43 $14,136 1.45% --
2016 Lowest contract charge 0.00% Class A $302.56 -- -- -- 25.23%
Highest contract charge 0.60% Class A $279.39 -- -- -- 24.48%
All contract charges -- 46 $13,586 1.36% --
2015 Lowest contract charge 0.00% Class A $241.60 -- -- -- (13.13)%
Highest contract charge 0.60% Class A $224.44 -- -- -- (13.65)%
All contract charges -- 48 $11,523 0.52% --
2014 Lowest contract charge 0.00% Class A $278.12 -- -- -- (5.12)%
Highest contract charge 0.60% Class A $259.93 -- -- -- (5.69)%
All contract charges -- 51 $14,155 0.17% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class B $307.37 -- -- -- (12.98)%
Highest contract charge 0.90% Class B $257.41 -- -- -- (13.77)%
All contract charges -- 48 $13,628 1.15% --
2017 Lowest contract charge 0.00% Class B $353.23 -- -- -- 11.30%
Highest contract charge 0.90% Class B $298.52 -- -- -- 10.30%
All contract charges -- 51 $16,788 1.45% --
2016 Lowest contract charge 0.00% Class B $317.38 -- -- -- 25.23%
Highest contract charge 0.90% Class B $270.65 -- -- -- 24.11%
All contract charges -- 55 $16,433 1.36% --
2015 Lowest contract charge 0.00% Class B $253.43 -- -- -- (13.13)%
Highest contract charge 0.90% Class B $218.07 -- -- -- (13.92)%
All contract charges -- 61 $14,517 0.52% --
2014 Lowest contract charge 0.00% Class B $291.75 -- -- -- (5.11)%
Highest contract charge 0.90% Class B $253.33 -- -- -- (5.96)%
All contract charges -- 65 $17,745 0.17% --
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
Highest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
All contract charges -- 56 $ 618 0.25% --
2017 Lowest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
Highest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
All contract charges -- 25 $ 314 0.47% --
2016 Lowest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
Highest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
All contract charges -- -- $ 5 1.01% --
EQ/AMERICAN CENTURY MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(g) $ 21.75 -- -- -- (9.38)%
Highest contract charge 0.90% Class B(f)(g) $201.05 -- -- -- (9.54)%
All contract charges -- 443 $48,111 0.57% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class A $360.36 -- -- -- (8.02)%
Highest contract charge 0.60% Class A $328.79 -- -- -- (8.57)%
All contract charges -- 244 $35,722 1.60% --
2017 Lowest contract charge 0.00% Class A $391.76 -- -- -- 8.11%
Highest contract charge 0.60% Class A $359.60 -- -- -- 7.46%
All contract charges -- 247 $41,840 1.40% --
|
FSA-134
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/BLACKROCK BASIC VALUE EQUITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $362.37 -- -- -- 17.96%
Highest contract charge 0.60% Class A $334.63 -- -- -- 17.26%
All contract charges -- 246 $ 40,079 1.49% --
2015 Lowest contract charge 0.00% Class A $307.19 -- -- -- (6.15)%
Highest contract charge 0.60% Class A $285.38 -- -- -- (6.71)%
All contract charges -- 242 $ 36,247 1.28% --
2014 Lowest contract charge 0.00% Class A $327.32 -- -- -- 9.71%
Highest contract charge 0.60% Class A $305.92 -- -- -- 9.05%
All contract charges -- 227 $ 40,401 1.07% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class B $474.29 -- -- -- (8.01)%
Highest contract charge 0.90% Class B $389.92 -- -- -- (8.85)%
All contract charges -- 347 $147,522 1.60% --
2017 Lowest contract charge 0.00% Class B $515.61 -- -- -- 8.11%
Highest contract charge 0.90% Class B $427.76 -- -- -- 7.14%
All contract charges -- 369 $170,709 1.40% --
2016 Lowest contract charge 0.00% Class B $476.93 -- -- -- 17.96%
Highest contract charge 0.90% Class B $399.26 -- -- -- 16.91%
All contract charges -- 400 $171,810 1.49% --
2015 Lowest contract charge 0.00% Class B $404.30 -- -- -- (6.15)%
Highest contract charge 0.90% Class B $341.52 -- -- -- (6.99)%
All contract charges -- 436 $158,529 1.28% --
2014 Lowest contract charge 0.00% Class B $430.79 -- -- -- 9.70%
Highest contract charge 0.90% Class B $367.20 -- -- -- 8.72%
All contract charges -- 463 $179,873 1.07% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class A $421.95 -- -- -- (4.84)%
Highest contract charge 0.60% Class A $262.91 -- -- -- (5.41)%
All contract charges -- 70 $ 15,092 0.57% --
2017 Lowest contract charge 0.00% Class A $443.41 -- -- -- 25.44%
Highest contract charge 0.60% Class A $277.95 -- -- -- 24.69%
All contract charges -- 62 $ 16,329 0.78% --
2016 Lowest contract charge 0.00% Class A $353.49 -- -- -- 8.42%
Highest contract charge 0.60% Class A $222.92 -- -- -- 7.77%
All contract charges -- 60 $ 13,834 0.87% --
2015 Lowest contract charge 0.00% Class A $326.03 -- -- -- 1.91%
Highest contract charge 0.60% Class A $206.84 -- -- -- 1.30%
All contract charges -- 62 $ 14,705 0.59% --
2014 Lowest contract charge 0.00% Class A $319.92 -- -- -- 10.51%
Highest contract charge 0.60% Class A $204.19 -- -- -- 9.85%
All contract charges -- 62 $ 15,531 0.70% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class B $320.51 -- -- -- (4.84)%
Highest contract charge 0.90% Class B $269.10 -- -- -- (5.70)%
All contract charges -- 337 $ 96,993 0.57% --
2017 Lowest contract charge 0.00% Class B $336.81 -- -- -- 25.44%
Highest contract charge 0.90% Class B $285.37 -- -- -- 24.31%
All contract charges -- 358 $108,933 0.78% --
2016 Lowest contract charge 0.00% Class B $268.51 -- -- -- 8.42%
Highest contract charge 0.90% Class B $229.56 -- -- -- 7.45%
All contract charges -- 377 $ 92,101 0.87% --
2015 Lowest contract charge 0.00% Class B $247.65 -- -- -- 1.91%
Highest contract charge 0.90% Class B $213.65 -- -- -- 1.00%
All contract charges -- 417 $ 94,238 0.59% --
2014 Lowest contract charge 0.00% Class B $243.01 -- -- -- 10.51%
Highest contract charge 0.90% Class B $211.54 -- -- -- 9.52%
All contract charges -- 419 $ 93,222 0.70% --
|
FSA-135
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class A $677.71 -- -- -- (5.80)%
Highest contract charge 0.90% Class A $683.50 -- -- -- (6.65)%
All contract charges -- 1,222 $1,276,167 1.30% --
2017 Lowest contract charge 0.00% Class A $719.43 -- -- -- 20.47%
Highest contract charge 0.90% Class A $732.21 -- -- -- 19.39%
All contract charges -- 1,320 $1,495,123 1.30% --
2016 Lowest contract charge 0.00% Class A $597.19 -- -- -- 11.69%
Highest contract charge 0.90% Class A $613.30 -- -- -- 10.69%
All contract charges -- 1,384 $1,360,428 1.55% --
2015 Lowest contract charge 0.00% Class A $534.69 -- -- -- (0.05)%
Highest contract charge 0.90% Class A $554.08 -- -- -- (0.95)%
All contract charges -- 1,448 $1,330,558 1.37% --
2014 Lowest contract charge 0.00% Class A $534.98 -- -- -- 12.05%
Highest contract charge 0.90% Class A $559.42 -- -- -- 11.05%
All contract charges -- 1,467 $1,441,799 1.24% --
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class B $211.64 -- -- -- (5.80)%
Highest contract charge 0.60% Class B $226.64 -- -- -- (6.37)%
All contract charges -- 926 $ 205,339 1.30% --
2017 Lowest contract charge 0.00% Class B $224.67 -- -- -- 20.47%
Highest contract charge 0.60% Class B $242.06 -- -- -- 19.75%
All contract charges -- 951 $ 225,386 1.30% --
2016 Lowest contract charge 0.00% Class B $186.50 -- -- -- 11.69%
Highest contract charge 0.60% Class B $202.14 -- -- -- 11.02%
All contract charges -- 981 $ 194,128 1.55% --
2015 Lowest contract charge 0.00% Class B $166.98 -- -- -- (0.05)%
Highest contract charge 0.60% Class B $182.07 -- -- -- (0.65)%
All contract charges -- 1,016 $ 181,517 1.37% --
2014 Lowest contract charge 0.00% Class B $167.07 -- -- -- 12.05%
Highest contract charge 0.60% Class B $183.27 -- -- -- 11.38%
All contract charges -- 1,060 $ 191,161 1.24% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class A $137.67 -- -- -- 0.25%
Highest contract charge 0.90% Class A $123.31 -- -- -- (0.66)%
All contract charges -- 176 $ 25,499 1.91% --
2017 Lowest contract charge 0.00% Class A $137.33 -- -- -- 1.46%
Highest contract charge 0.90% Class A $124.13 -- -- -- 0.55%
All contract charges -- 182 $ 26,157 1.39% --
2016 Lowest contract charge 0.00% Class A $135.35 -- -- -- 1.38%
Highest contract charge 0.90% Class A $123.45 -- -- -- 0.47%
All contract charges -- 200 $ 28,475 1.50% --
2015 Lowest contract charge 0.00% Class A $133.51 -- -- -- 0.44%
Highest contract charge 0.90% Class A $122.87 -- -- -- (0.47)%
All contract charges -- 207 $ 29,322 1.49% --
2014 Lowest contract charge 0.00% Class A $132.93 -- -- -- 2.41%
Highest contract charge 0.90% Class A $123.45 -- -- -- 1.50%
All contract charges -- 219 $ 30,635 1.31% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class B $143.04 -- -- -- 0.25%
Highest contract charge 0.60% Class B $158.32 -- -- -- (0.36)%
All contract charges -- 162 $ 24,073 1.91% --
2017 Lowest contract charge 0.00% Class B $142.69 -- -- -- 1.46%
Highest contract charge 0.60% Class B $158.89 -- -- -- 0.86%
All contract charges -- 172 $ 25,594 1.39% --
|
FSA-136
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/CORE BOND INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class B $140.63 -- -- -- 1.38%
Highest contract charge 0.60% Class B $157.54 -- -- -- 0.77%
All contract charges -- 165 $ 24,392 1.50% --
2015 Lowest contract charge 0.00% Class B $138.72 -- -- -- 0.44%
Highest contract charge 0.60% Class B $156.34 -- -- -- (0.17)%
All contract charges -- 157 $ 23,116 1.49% --
2014 Lowest contract charge 0.00% Class B $138.11 -- -- -- 2.41%
Highest contract charge 0.60% Class B $156.60 -- -- -- 1.80%
All contract charges -- 151 $ 22,367 1.31% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class A $777.94 -- -- -- (4.93)%
Highest contract charge 0.90% Class A $628.01 -- -- -- (5.80)%
All contract charges -- 1,470 $538,073 1.45% --
2017 Lowest contract charge 0.00% Class A $818.32 -- -- -- 21.04%
Highest contract charge 0.90% Class A $666.65 -- -- -- 19.96%
All contract charges -- 1,393 $602,506 1.45% --
2016 Lowest contract charge 0.00% Class A $676.05 -- -- -- 11.24%
Highest contract charge 0.90% Class A $555.73 -- -- -- 10.24%
All contract charges -- 1,292 $542,718 1.66% --
2015 Lowest contract charge 0.00% Class A $607.76 -- -- -- 0.80%
Highest contract charge 0.90% Class A $504.12 -- -- -- (0.11)%
All contract charges -- 1,399 $519,057 1.61% --
2014 Lowest contract charge 0.00% Class A $602.94 -- -- -- 12.98%
Highest contract charge 0.90% Class A $504.66 -- -- -- 11.96%
All contract charges -- 1,320 $556,228 1.39% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class B $235.43 -- -- -- (4.94)%
Highest contract charge 0.60% Class B $216.18 -- -- -- (5.51)%
All contract charges -- 1,158 $264,177 1.45% --
2017 Lowest contract charge 0.00% Class B $247.66 -- -- -- 21.04%
Highest contract charge 0.60% Class B $228.79 -- -- -- 20.32%
All contract charges -- 1,137 $272,641 1.45% --
2016 Lowest contract charge 0.00% Class B $204.61 -- -- -- 11.23%
Highest contract charge 0.60% Class B $190.15 -- -- -- 10.56%
All contract charges -- 1,100 $217,785 1.66% --
2015 Lowest contract charge 0.00% Class B $183.95 -- -- -- 0.79%
Highest contract charge 0.60% Class B $171.99 -- -- -- 0.19%
All contract charges -- 1,073 $191,053 1.61% --
2014 Lowest contract charge 0.00% Class B $182.51 -- -- -- 12.97%
Highest contract charge 0.60% Class B $171.67 -- -- -- 12.30%
All contract charges -- 1,056 $186,511 1.39% --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP
2018 Lowest contract charge 0.00% Class B(f)(h) $ 32.04 -- -- -- (11.05)%
Highest contract charge 0.90% Class B(f)(h) $195.89 -- -- -- (11.22)%
All contract charges -- 589 $ 93,723 0.25% --
EQ/FRANKLIN RISING DIVIDENDS
2018 Lowest contract charge 0.00% Class B(f)(i) $232.46 -- -- -- (7.28)%
Highest contract charge 0.90% Class B(f)(i) $214.89 -- -- -- (7.44)%
All contract charges -- 229 $ 52,109 0.29% --
EQ/FRANKLIN STRATEGIC INCOME
2018 Lowest contract charge 0.00% Class B(f)(j) $136.15 -- -- -- (1.14)%
Highest contract charge 0.90% Class B(f)(j) $125.86 -- -- -- (1.32)%
All contract charges -- 250 $ 33,498 0.70% --
|
FSA-137
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class A $142.20 -- -- -- (1.63)%
Highest contract charge 0.90% Class A $119.81 -- -- -- (2.51)%
All contract charges -- 104 $ 7,532 1.35% --
2017 Lowest contract charge 0.00% Class A $144.55 -- -- -- 4.65%
Highest contract charge 0.90% Class A $122.90 -- -- -- 3.71%
All contract charges -- 99 $ 7,953 0.04% --
2016 Lowest contract charge 0.00% Class A $138.13 -- -- -- 0.68%
Highest contract charge 0.90% Class A $118.50 -- -- -- (0.23)%
All contract charges -- 99 $ 8,311 1.92% --
2015 Lowest contract charge 0.00% Class A $137.20 -- -- -- (3.80)%
Highest contract charge 0.90% Class A $118.77 -- -- -- (4.66)%
All contract charges -- 93 $ 8,563 0.04% --
2014 Lowest contract charge 0.00% Class A $142.62 -- -- -- 0.88%
Highest contract charge 0.90% Class A $124.58 -- -- -- (0.02)%
All contract charges -- 100 $11,375 0.67% --
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class B $135.52 -- -- -- (1.63)%
Highest contract charge 0.60% Class B $122.66 -- -- -- (2.22)%
All contract charges -- 69 $ 9,105 1.35% --
2017 Lowest contract charge 0.00% Class B $137.76 -- -- -- 4.65%
Highest contract charge 0.60% Class B $125.44 -- -- -- 4.02%
All contract charges -- 68 $ 9,131 0.04% --
2016 Lowest contract charge 0.00% Class B $131.64 -- -- -- 0.68%
Highest contract charge 0.60% Class B $120.59 -- -- -- 0.07%
All contract charges -- 69 $ 8,747 1.92% --
2015 Lowest contract charge 0.00% Class B $130.75 -- -- -- (3.80)%
Highest contract charge 0.60% Class B $120.50 -- -- -- (4.38)%
All contract charges -- 66 $ 8,457 0.04% --
2014 Lowest contract charge 0.00% Class B $135.92 -- -- -- 0.89%
Highest contract charge 0.60% Class B $126.02 -- -- -- 0.29%
All contract charges -- 67 $ 8,941 0.67% --
EQ/GOLDMAN SACHS MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(k) $182.47 -- -- -- (8.70)%
Highest contract charge 0.90% Class B(f)(k) $168.67 -- -- -- (8.86)%
All contract charges -- 48 $ 8,496 0.22% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class A $237.70 -- -- -- 0.83%
Highest contract charge 0.90% Class A $199.78 -- -- -- (0.08)%
All contract charges -- 207 $29,582 1.24% --
2017 Lowest contract charge 0.00% Class A $235.74 -- -- -- 0.34%
Highest contract charge 0.90% Class A $199.94 -- -- -- (0.56)%
All contract charges -- 370 $69,699 0.84% --
2016 Lowest contract charge 0.00% Class A $234.93 -- -- -- 0.45%
Highest contract charge 0.90% Class A $201.07 -- -- -- (0.45)%
All contract charges -- 354 $70,206 0.70% --
2015 Lowest contract charge 0.00% Class A $233.88 -- -- -- 0.43%
Highest contract charge 0.90% Class A $201.98 -- -- -- (0.47)%
All contract charges -- 323 $65,486 0.60% --
2014 Lowest contract charge 0.00% Class A $232.88 -- -- -- 1.53%
Highest contract charge 0.90% Class A $202.94 -- -- -- 0.62%
All contract charges -- 318 $65,987 0.40% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class B $170.68 -- -- -- 0.83%
Highest contract charge 0.60% Class B $151.63 -- -- -- 0.22%
All contract charges -- 119 $18,533 1.24% --
|
FSA-138
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INTERMEDIATE GOVERNMENT BOND (CONTINUED)
2017 Lowest contract charge 0.00% Class B $169.28 -- -- -- 0.34%
Highest contract charge 0.60% Class B $151.29 -- -- -- (0.26)%
All contract charges -- 123 $ 19,188 0.84% --
2016 Lowest contract charge 0.00% Class B $168.70 -- -- -- 0.45%
Highest contract charge 0.60% Class B $151.68 -- -- -- (0.15)%
All contract charges -- 135 $ 20,929 0.70% --
2015 Lowest contract charge 0.00% Class B $167.94 -- -- -- 0.42%
Highest contract charge 0.60% Class B $151.91 -- -- -- (0.18)%
All contract charges -- 120 $ 18,638 0.60% --
2014 Lowest contract charge 0.00% Class B $167.23 -- -- -- 1.54%
Highest contract charge 0.60% Class B $152.18 -- -- -- 0.93%
All contract charges -- 125 $ 19,156 0.40% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class A $199.45 -- -- -- (15.17)%
Highest contract charge 0.90% Class A $160.91 -- -- -- (15.94)%
All contract charges -- 1,515 $218,461 2.40% --
2017 Lowest contract charge 0.00% Class A $235.12 -- -- -- 23.22%
Highest contract charge 0.90% Class A $191.42 -- -- -- 22.12%
All contract charges -- 1,529 $270,450 2.64% --
2016 Lowest contract charge 0.00% Class A $190.81 -- -- -- 2.20%
Highest contract charge 0.90% Class A $156.75 -- -- -- 1.28%
All contract charges -- 1,486 $220,734 2.72% --
2015 Lowest contract charge 0.00% Class A $186.71 -- -- -- (2.14)%
Highest contract charge 0.90% Class A $154.77 -- -- -- (3.02)%
All contract charges -- 1,506 $232,186 2.32% --
2014 Lowest contract charge 0.00% Class A $190.79 -- -- -- (6.90)%
Highest contract charge 0.90% Class A $159.59 -- -- -- (7.74)%
All contract charges -- 1,507 $254,494 2.97% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class B $136.17 -- -- -- (15.17)%
Highest contract charge 0.90% Class B $118.46 -- -- -- (15.94)%
All contract charges -- 407 $ 53,646 2.40% --
2017 Lowest contract charge 0.00% Class B $160.52 -- -- -- 23.22%
Highest contract charge 0.90% Class B $140.92 -- -- -- 22.11%
All contract charges -- 409 $ 63,674 2.64% --
2016 Lowest contract charge 0.00% Class B $130.27 -- -- -- 2.20%
Highest contract charge 0.90% Class B $115.40 -- -- -- 1.28%
All contract charges -- 407 $ 51,586 2.72% --
2015 Lowest contract charge 0.00% Class B $127.47 -- -- -- (2.13)%
Highest contract charge 0.90% Class B $113.94 -- -- -- (3.02)%
All contract charges -- 424 $ 52,585 2.32% --
2014 Lowest contract charge 0.00% Class B $130.25 -- -- -- (6.90)%
Highest contract charge 0.90% Class B $117.49 -- -- -- (7.74)%
All contract charges -- 414 $ 52,708 2.97% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class A $169.29 -- -- -- (12.39)%
Highest contract charge 0.90% Class A $152.29 -- -- -- (13.19)%
All contract charges -- 92 $ 11,775 1.55% --
2017 Lowest contract charge 0.00% Class A $193.24 -- -- -- 17.98%
Highest contract charge 0.90% Class A $175.43 -- -- -- 16.92%
All contract charges -- 94 $ 14,441 0.80% --
2016 Lowest contract charge 0.00% Class A $163.79 -- -- -- 17.38%
Highest contract charge 0.90% Class A $150.04 -- -- -- 16.32%
All contract charges -- 80 $ 10,866 2.44% --
|
FSA-139
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INVESCO COMSTOCK (CONTINUED)
2015 Lowest contract charge 0.00% Class A $139.54 -- -- -- (6.19)%
Highest contract charge 0.90% Class A $128.99 -- -- -- (7.03)%
All contract charges -- 100 $12,263 2.18% --
2014 Lowest contract charge 0.00% Class A $148.75 -- -- -- 8.92%
Highest contract charge 0.90% Class A $138.74 -- -- -- 7.94%
All contract charges -- 101 $13,086 1.88% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class B $215.50 -- -- -- (12.39)%
Highest contract charge 0.60% Class B $155.85 -- -- -- (12.92)%
All contract charges -- 68 $13,818 1.55% --
2017 Lowest contract charge 0.00% Class B $245.99 -- -- -- 17.98%
Highest contract charge 0.60% Class B $178.98 -- -- -- 17.27%
All contract charges -- 66 $15,264 0.80% --
2016 Lowest contract charge 0.00% Class B $208.50 -- -- -- 17.37%
Highest contract charge 0.60% Class B $152.62 -- -- -- 16.67%
All contract charges -- 65 $12,804 2.44% --
2015 Lowest contract charge 0.00% Class B $177.64 -- -- -- (6.19)%
Highest contract charge 0.60% Class B $130.81 -- -- -- (6.75)%
All contract charges -- 71 $11,678 2.18% --
2014 Lowest contract charge 0.00% Class B $189.36 -- -- -- 8.92%
Highest contract charge 0.60% Class B $140.28 -- -- -- 8.26%
All contract charges -- 69 $12,100 1.88% --
EQ/INVESCO GLOBAL REAL ESTATE
2018 Lowest contract charge 0.00% Class B(f)(l) $ 16.47 -- -- -- (0.72)%
Highest contract charge 0.90% Class B(f)(l) $152.23 -- -- -- (0.92)%
All contract charges -- 449 $36,366 0.56% --
EQ/INVESCO INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B(f)(m) $ 14.21 -- -- -- (5.01)%
Highest contract charge 0.90% Class B(f)(m) $131.36 -- -- -- (5.20)%
All contract charges -- 526 $32,100 0.22% --
EQ/IVY ENERGY
2018 Lowest contract charge 0.00% Class B(f)(n) $ 7.26 -- -- -- (31.51)%
Highest contract charge 0.90% Class B(f)(n) $ 67.13 -- -- -- (31.59)%
All contract charges -- 250 $10,239 0.10% --
EQ/IVY MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B(f)(o) $ 23.22 -- -- -- (9.37)%
Highest contract charge 0.90% Class B(f)(o) $214.67 -- -- -- (9.51)%
All contract charges -- 260 $33,196 0.01% --
EQ/IVY SCIENCE AND TECHNOLOGY
2018 Lowest contract charge 0.00% Class B(f)(p) $169.19 -- -- -- (11.81)%
Highest contract charge 0.90% Class B(f)(p) $160.77 -- -- -- (11.96)%
All contract charges -- 257 $32,653 0.00% --
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
Highest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
All contract charges -- 100 $ 6,391 1.03% --
2017 Lowest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
Highest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
All contract charges -- 41 $ 4,807 0.86% --
2016 Lowest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
Highest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
All contract charges -- 32 $ 3,509 1.05% --
2015 Lowest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
Highest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
All contract charges -- 30 $ 2,225 0.70% --
2014 Lowest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
Highest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
All contract charges -- 21 $ 1,687 1.08% --
|
FSA-140
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class B $327.29 -- -- -- (15.40)%
Highest contract charge 0.90% Class B $269.06 -- -- -- (16.17)%
All contract charges -- 127 $ 37,048 1.03% --
2017 Lowest contract charge 0.00% Class B $386.87 -- -- -- 17.72%
Highest contract charge 0.90% Class B $320.95 -- -- -- 16.66%
All contract charges -- 131 $ 45,408 0.86% --
2016 Lowest contract charge 0.00% Class B $328.64 -- -- -- 21.53%
Highest contract charge 0.90% Class B $275.11 -- -- -- 20.44%
All contract charges -- 115 $ 34,289 1.05% --
2015 Lowest contract charge 0.00% Class B $270.42 -- -- -- (2.28)%
Highest contract charge 0.90% Class B $228.43 -- -- -- (3.16)%
All contract charges -- 121 $ 29,513 0.70% --
2014 Lowest contract charge 0.00% Class B $276.74 -- -- -- 14.38%
Highest contract charge 0.90% Class B $235.89 -- -- -- 13.35%
All contract charges -- 124 $ 30,663 1.08% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class A $442.02 -- -- -- (2.26)%
Highest contract charge 0.60% Class A $290.81 -- -- -- (2.85)%
All contract charges -- 92 $ 19,274 0.63% --
2017 Lowest contract charge 0.00% Class A $452.25 -- -- -- 29.22%
Highest contract charge 0.60% Class A $299.34 -- -- -- 28.44%
All contract charges -- 86 $ 20,954 0.77% --
2016 Lowest contract charge 0.00% Class A $349.98 -- -- -- 6.34%
Highest contract charge 0.60% Class A $233.05 -- -- -- 5.71%
All contract charges -- 82 $ 16,601 1.01% --
2015 Lowest contract charge 0.00% Class A $329.10 -- -- -- 4.86%
Highest contract charge 0.60% Class A $220.46 -- -- -- 4.23%
All contract charges -- 77 $ 16,461 0.87% --
2014 Lowest contract charge 0.00% Class A $313.85 -- -- -- 12.24%
Highest contract charge 0.60% Class A $211.51 -- -- -- 11.57%
All contract charges -- 67 $ 15,886 0.91% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class B $219.96 -- -- -- (2.26)%
Highest contract charge 0.90% Class B $184.28 -- -- -- (3.15)%
All contract charges -- 644 $128,927 0.63% --
2017 Lowest contract charge 0.00% Class B $225.05 -- -- -- 29.22%
Highest contract charge 0.90% Class B $190.27 -- -- -- 28.07%
All contract charges -- 680 $139,563 0.77% --
2016 Lowest contract charge 0.00% Class B $174.16 -- -- -- 6.34%
Highest contract charge 0.90% Class B $148.57 -- -- -- 5.39%
All contract charges -- 713 $113,687 1.01% --
2015 Lowest contract charge 0.00% Class B $163.77 -- -- -- 4.87%
Highest contract charge 0.90% Class B $140.97 -- -- -- 3.92%
All contract charges -- 764 $114,945 0.87% --
2014 Lowest contract charge 0.00% Class B $156.17 -- -- -- 12.24%
Highest contract charge 0.90% Class B $135.65 -- -- -- 11.22%
All contract charges -- 805 $115,779 0.91% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class A $108.69 -- -- -- (8.89)%
Highest contract charge 0.90% Class A $ 97.78 -- -- -- (9.71)%
All contract charges -- 106 $ 10,979 1.99% --
2017 Lowest contract charge 0.00% Class A $119.30 -- -- -- 13.01%
Highest contract charge 0.90% Class A $108.30 -- -- -- 11.98%
All contract charges -- 122 $ 13,848 1.94% --
|
FSA-141
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/LARGE CAP VALUE INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class A $105.57 -- -- -- 16.47%
Highest contract charge 0.90% Class A $ 96.71 -- -- -- 15.43%
All contract charges -- 125 $ 12,655 2.17% --
2015 Lowest contract charge 0.00% Class A $ 90.64 -- -- -- (4.43)%
Highest contract charge 0.90% Class A $ 83.78 -- -- -- (5.29)%
All contract charges -- 114 $ 10,014 1.96% --
2014 Lowest contract charge 0.00% Class A $ 94.84 -- -- -- 12.62%
Highest contract charge 0.90% Class A $ 88.46 -- -- -- 11.61%
All contract charges -- 112 $ 10,362 1.62% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class B $125.20 -- -- -- (8.89)%
Highest contract charge 0.60% Class B $100.13 -- -- -- (9.43)%
All contract charges -- 114 $ 13,704 1.99% --
2017 Lowest contract charge 0.00% Class B $137.42 -- -- -- 13.00%
Highest contract charge 0.60% Class B $110.56 -- -- -- 12.32%
All contract charges -- 115 $ 15,123 1.94% --
2016 Lowest contract charge 0.00% Class B $121.61 -- -- -- 16.47%
Highest contract charge 0.60% Class B $ 98.43 -- -- -- 15.77%
All contract charges -- 105 $ 12,174 2.17% --
2015 Lowest contract charge 0.00% Class B $104.41 -- -- -- (4.43)%
Highest contract charge 0.60% Class B $ 85.02 -- -- -- (5.01)%
All contract charges -- 97 $ 9,549 1.96% --
2014 Lowest contract charge 0.00% Class B $109.25 -- -- -- 12.63%
Highest contract charge 0.60% Class B $ 89.50 -- -- -- 11.96%
All contract charges -- 84 $ 8,774 1.62% --
EQ/LAZARD EMERGING MARKETS EQUITY
2018 Lowest contract charge 0.00% Class B(f)(q) $ 10.83 -- -- -- (1.37)%
Highest contract charge 0.90% Class B(f)(q) $100.12 -- -- -- (1.54)%
All contract charges -- 966 $ 52,589 0.17% --
EQ/MFS INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B $225.18 -- -- -- (9.37)%
Highest contract charge 0.90% Class B $126.94 -- -- -- (10.19)%
All contract charges -- 281 $ 46,697 0.89% --
2017 Lowest contract charge 0.00% Class B $248.46 -- -- -- 32.05%
Highest contract charge 0.90% Class B $141.35 -- -- -- 30.88%
All contract charges -- 283 $ 51,192 0.84% --
2016 Lowest contract charge 0.00% Class B $188.15 -- -- -- 1.98%
Highest contract charge 0.90% Class B $108.00 -- -- -- 1.06%
All contract charges -- 283 $ 38,646 1.00% --
2015 Lowest contract charge 0.00% Class B $184.50 -- -- -- 0.20%
Highest contract charge 0.90% Class B $106.87 -- -- -- (0.71)%
All contract charges -- 285 $ 37,624 0.60% --
2014 Lowest contract charge 0.00% Class B $184.13 -- -- -- (5.01)%
Highest contract charge 0.90% Class B $107.63 -- -- -- (5.86)%
All contract charges -- 287 $ 37,394 0.94% --
EQ/MFS INTERNATIONAL VALUE
2018 Lowest contract charge 0.00% Class B(f)(r) $ 19.84 -- -- -- (4.34)%
Highest contract charge 0.90% Class B(f)(r) $183.36 -- -- -- (4.53)%
All contract charges -- 1,057 $102,837 0.00% --
EQ/MFS UTILITIES SERIES
2018 Lowest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
Highest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
All contract charges -- 102 $ 2,292 0.52% --
|
FSA-142
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class A $403.99 -- -- -- (11.69)%
Highest contract charge 0.60% Class A $273.70 -- -- -- (12.23)%
All contract charges -- 202 $ 33,764 1.08% --
2017 Lowest contract charge 0.00% Class A $457.47 -- -- -- 15.48%
Highest contract charge 0.60% Class A $311.82 -- -- -- 14.79%
All contract charges -- 168 $ 38,774 0.93% --
2016 Lowest contract charge 0.00% Class A $396.14 -- -- -- 19.91%
Highest contract charge 0.60% Class A $271.64 -- -- -- 19.19%
All contract charges -- 149 $ 32,505 1.09% --
2015 Lowest contract charge 0.00% Class A $330.36 -- -- -- (2.86)%
Highest contract charge 0.60% Class A $227.90 -- -- -- (3.44)%
All contract charges -- 141 $ 28,395 0.86% --
2014 Lowest contract charge 0.00% Class A $340.09 -- -- -- 8.99%
Highest contract charge 0.60% Class A $236.02 -- -- -- 8.34%
All contract charges -- 129 $ 29,901 0.80% --
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class B $258.04 -- -- -- (11.69)%
Highest contract charge 0.90% Class B $218.63 -- -- -- (12.49)%
All contract charges -- 417 $100,436 1.08% --
2017 Lowest contract charge 0.00% Class B $292.20 -- -- -- 15.48%
Highest contract charge 0.90% Class B $249.83 -- -- -- 14.44%
All contract charges -- 432 $118,329 0.93% --
2016 Lowest contract charge 0.00% Class B $253.03 -- -- -- 19.91%
Highest contract charge 0.90% Class B $218.30 -- -- -- 18.84%
All contract charges -- 400 $ 94,440 1.09% --
2015 Lowest contract charge 0.00% Class B $211.01 -- -- -- (2.86)%
Highest contract charge 0.90% Class B $183.70 -- -- -- (3.73)%
All contract charges -- 419 $ 82,531 0.86% --
2014 Lowest contract charge 0.00% Class B $217.22 -- -- -- 8.99%
Highest contract charge 0.90% Class B $190.82 -- -- -- 8.01%
All contract charges -- 427 $ 86,668 0.80% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class A $174.96 -- -- -- 1.27%
Highest contract charge 0.90% Class A $149.35 -- -- -- 0.36%
All contract charges -- 1,469 $101,491 1.25% --
2017 Lowest contract charge 0.00% Class A $172.76 -- -- -- 0.40%
Highest contract charge 0.90% Class A $148.82 -- -- -- (0.50)%
All contract charges -- 1,389 $100,524 0.39% --
2016 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $149.57 -- -- -- (0.89)%
All contract charges -- 1,609 $112,607 0.00% --
2015 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $150.92 -- -- -- (0.90)%
All contract charges -- 1,459 $116,349 0.00% --
2014 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $152.29 -- -- -- (0.90)%
All contract charges -- 1,156 $125,159 0.00% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class B $133.70 -- -- -- 1.27%
Highest contract charge 0.60% Class B $124.25 -- -- -- 0.66%
All contract charges -- 331 $ 42,439 1.25% --
2017 Lowest contract charge 0.00% Class B $132.02 -- -- -- 0.40%
Highest contract charge 0.60% Class B $123.43 -- -- -- (0.20)%
All contract charges -- 418 $ 53,555 0.39% --
|
FSA-143
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MONEY MARKET (CONTINUED)
2016 Lowest contract charge 0.00% Class B $131.49 -- -- -- --
Highest contract charge 0.60% Class B $123.68 -- -- -- (0.59)%
All contract charges -- 360 $45,810 0.00% --
2015 Lowest contract charge 0.00% Class B $131.49 -- -- -- (0.01)%
Highest contract charge 0.60% Class B $124.42 -- -- -- (0.60)%
All contract charges -- 343 $43,876 0.00% --
2014 Lowest contract charge 0.00% Class B $131.50 -- -- -- 0.01%
Highest contract charge 0.60% Class B $125.17 -- -- -- (0.60)%
All contract charges -- 330 $42,162 0.00% --
EQ/PIMCO REAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(t) $123.20 -- -- -- 0.40%
Highest contract charge 0.90% Class B(f)(t) $113.89 -- -- -- 0.23%
All contract charges -- 305 $24,169 0.46% --
EQ/PIMCO TOTAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(u) $129.93 -- -- -- 1.75%
Highest contract charge 0.90% Class B(f)(u) $120.11 -- -- -- 1.57%
All contract charges -- 735 $68,223 0.69% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class A $121.24 -- -- -- 0.97%
Highest contract charge 0.90% Class A $109.07 -- -- -- 0.05%
All contract charges -- 136 $15,866 1.99% --
2017 Lowest contract charge 0.00% Class A $120.08 -- -- -- 1.88%
Highest contract charge 0.90% Class A $109.02 -- -- -- 0.97%
All contract charges -- 138 $15,815 1.32% --
2016 Lowest contract charge 0.00% Class A $117.86 -- -- -- 1.99%
Highest contract charge 0.90% Class A $107.97 -- -- -- 1.08%
All contract charges -- 125 $14,261 1.00% --
2015 Lowest contract charge 0.00% Class A $115.56 -- -- -- (0.28)%
Highest contract charge 0.90% Class A $106.82 -- -- -- (1.17)%
All contract charges -- 145 $16,282 0.47% --
2014 Lowest contract charge 0.00% Class A $115.88 -- -- -- (0.09)%
Highest contract charge 0.90% Class A $108.09 -- -- -- (0.99)%
All contract charges -- 156 $17,494 0.38% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class B $124.24 -- -- -- 0.95%
Highest contract charge 0.60% Class B $112.39 -- -- -- 0.35%
All contract charges -- 145 $17,517 1.99% --
2017 Lowest contract charge 0.00% Class B $123.07 -- -- -- 1.90%
Highest contract charge 0.60% Class B $112.00 -- -- -- 1.28%
All contract charges -- 146 $17,454 1.32% --
2016 Lowest contract charge 0.00% Class B $120.78 -- -- -- 1.98%
Highest contract charge 0.60% Class B $110.58 -- -- -- 1.38%
All contract charges -- 142 $16,743 1.00% --
2015 Lowest contract charge 0.00% Class B $118.43 -- -- -- (0.27)%
Highest contract charge 0.60% Class B $109.08 -- -- -- (0.87)%
All contract charges -- 153 $17,504 0.47% --
2014 Lowest contract charge 0.00% Class B $118.75 -- -- -- (0.09)%
Highest contract charge 0.60% Class B $110.04 -- -- -- (0.69)%
All contract charges -- 165 $19,037 0.38% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class A $257.31 -- -- -- 0.12%
Highest contract charge 0.90% Class A $193.19 -- -- -- (0.79)%
All contract charges -- 163 $22,879 1.68% --
2017 Lowest contract charge 0.00% Class A $257.00 -- -- -- 1.39%
Highest contract charge 0.90% Class A $194.72 -- -- -- 0.48%
All contract charges -- 173 $25,722 1.17% --
|
FSA-144
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/QUALITY BOND PLUS (CONTINUED)
2016 Lowest contract charge 0.00% Class A $253.48 -- -- -- 1.18%
Highest contract charge 0.90% Class A $193.79 -- -- -- 0.27%
All contract charges -- 203 $36,245 1.15% --
2015 Lowest contract charge 0.00% Class A $250.53 -- -- -- 0.22%
Highest contract charge 0.90% Class A $193.27 -- -- -- (0.68)%
All contract charges -- 208 $38,216 1.06% --
2014 Lowest contract charge 0.00% Class A $249.97 -- -- -- 2.90%
Highest contract charge 0.90% Class A $194.59 -- -- -- 1.98%
All contract charges -- 222 $41,887 0.99% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class B $173.62 -- -- -- 0.12%
Highest contract charge 0.60% Class B $154.00 -- -- -- (0.48)%
All contract charges -- 116 $18,748 1.68% --
2017 Lowest contract charge 0.00% Class B $173.41 -- -- -- 1.39%
Highest contract charge 0.60% Class B $154.75 -- -- -- 0.79%
All contract charges -- 122 $19,553 1.17% --
2016 Lowest contract charge 0.00% Class B $171.04 -- -- -- 1.18%
Highest contract charge 0.60% Class B $153.54 -- -- -- 0.57%
All contract charges -- 129 $20,541 1.15% --
2015 Lowest contract charge 0.00% Class B $169.05 -- -- -- 0.23%
Highest contract charge 0.60% Class B $152.67 -- -- -- (0.38)%
All contract charges -- 132 $20,722 1.06% --
2014 Lowest contract charge 0.00% Class B $168.67 -- -- -- 2.90%
Highest contract charge 0.60% Class B $153.25 -- -- -- 2.29%
All contract charges -- 137 $21,519 0.99% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class A $457.91 -- -- -- (11.31)%
Highest contract charge 0.90% Class A $349.48 -- -- -- (12.11)%
All contract charges -- 219 $47,905 0.96% --
2017 Lowest contract charge 0.00% Class A $516.30 -- -- -- 14.01%
Highest contract charge 0.90% Class A $397.65 -- -- -- 12.99%
All contract charges -- 211 $56,792 1.08% --
2016 Lowest contract charge 0.00% Class A $452.86 -- -- -- 20.53%
Highest contract charge 0.90% Class A $351.94 -- -- -- 19.45%
All contract charges -- 182 $49,667 1.17% --
2015 Lowest contract charge 0.00% Class A $375.73 -- -- -- (4.57)%
Highest contract charge 0.90% Class A $294.64 -- -- -- (5.43)%
All contract charges -- 175 $43,006 0.92% --
2014 Lowest contract charge 0.00% Class A $393.71 -- -- -- 4.85%
Highest contract charge 0.90% Class A $311.55 -- -- -- 3.91%
All contract charges -- 163 $45,618 0.80% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class B $332.45 -- -- -- (11.31)%
Highest contract charge 0.90% Class B $305.45 -- -- -- (12.11)%
All contract charges -- 125 $41,433 0.96% --
2017 Lowest contract charge 0.00% Class B $374.84 -- -- -- 14.01%
Highest contract charge 0.90% Class B $347.55 -- -- -- 12.99%
All contract charges -- 120 $44,655 1.08% --
2016 Lowest contract charge 0.00% Class B $328.79 -- -- -- 20.53%
Highest contract charge 0.90% Class B $307.60 -- -- -- 19.45%
All contract charges -- 111 $36,249 1.17% --
2015 Lowest contract charge 0.00% Class B $272.79 -- -- -- (4.57)%
Highest contract charge 0.90% Class B $257.52 -- -- -- (5.43)%
All contract charges -- 104 $28,328 0.92% --
2014 Lowest contract charge 0.00% Class B $285.84 -- -- -- 4.85%
Highest contract charge 0.90% Class B $272.30 -- -- -- 3.90%
All contract charges -- 99 $28,159 0.80% --
|
FSA-145
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class A $250.49 -- -- -- (1.61)%
Highest contract charge 0.60% Class A $233.23 -- -- -- (2.21)%
All contract charges -- 353 $ 15,577 0.00% --
2017 Lowest contract charge 0.00% Class A $254.60 -- -- -- 33.37%
Highest contract charge 0.60% Class A $238.50 -- -- -- 32.57%
All contract charges -- 229 $ 10,385 0.00% --
2016 Lowest contract charge 0.00% Class A $190.90 -- -- -- 1.34%
Highest contract charge 0.60% Class A $179.91 -- -- -- 0.74%
All contract charges -- 164 $ 5,664 0.00% --
2015 Lowest contract charge 0.00% Class A $188.38 -- -- -- 10.23%
Highest contract charge 0.60% Class A $178.59 -- -- -- 9.56%
All contract charges -- 125 $ 4,398 0.00% --
2014 Lowest contract charge 0.00% Class A $170.90 -- -- -- 8.64%
Highest contract charge 0.60% Class A $163.01 -- -- -- 7.99%
All contract charges -- 55 $ 2,411 0.00% --
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class B $293.39 -- -- -- (1.62)%
Highest contract charge 0.90% Class B $222.42 -- -- -- (2.51)%
All contract charges -- 390 $ 98,799 0.00% --
2017 Lowest contract charge 0.00% Class B $298.21 -- -- -- 33.37%
Highest contract charge 0.90% Class B $228.14 -- -- -- 32.17%
All contract charges -- 394 $101,528 0.00% --
2016 Lowest contract charge 0.00% Class B $223.60 -- -- -- 1.34%
Highest contract charge 0.90% Class B $172.61 -- -- -- 0.43%
All contract charges -- 375 $ 72,640 0.00% --
2015 Lowest contract charge 0.00% Class B $220.65 -- -- -- 10.23%
Highest contract charge 0.90% Class B $171.87 -- -- -- 9.23%
All contract charges -- 416 $ 79,230 0.00% --
2014 Lowest contract charge 0.00% Class B $200.18 -- -- -- 8.64%
Highest contract charge 0.90% Class B $157.34 -- -- -- 7.66%
All contract charges -- 360 $ 62,179 0.00% --
EQ/T. ROWE PRICE HEALTH SCIENCES
2018 Lowest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
Highest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
All contract charges -- 134 $ 7,851 0.00% --
EQ/UBS GROWTH & INCOME
2018 Lowest contract charge 0.00% Class B $240.25 -- -- -- (13.42)%
Highest contract charge 0.90% Class B $150.36 -- -- -- (14.20)%
All contract charges -- 60 $ 11,348 0.32% --
2017 Lowest contract charge 0.00% Class B $277.48 -- -- -- 21.28%
Highest contract charge 0.90% Class B $175.24 -- -- -- 20.19%
All contract charges -- 76 $ 16,096 0.29% --
2016 Lowest contract charge 0.00% Class B $228.79 -- -- -- 10.14%
Highest contract charge 0.90% Class B $145.80 -- -- -- 9.16%
All contract charges -- 63 $ 11,384 0.78% --
2015 Lowest contract charge 0.00% Class B $207.72 -- -- -- (1.42)%
Highest contract charge 0.90% Class B $133.57 -- -- -- (2.31)%
All contract charges -- 75 $ 12,167 0.58% --
2014 Lowest contract charge 0.00% Class B $210.72 -- -- -- 14.44%
Highest contract charge 0.90% Class B $136.73 -- -- -- 13.41%
All contract charges -- 67 $ 11,001 0.65% --
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
Highest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
All contract charges -- 14 $ 1,145 0.99% --
|
FSA-146
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO (CONTINUED)
2017 Lowest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
Highest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
All contract charges -- 15 $ 1,590 1.05% --
2016 Lowest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
Highest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
All contract charges -- 14 $ 1,383 1.33% --
2015 Lowest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
Highest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
All contract charges -- 15 $ 1,264 0.98% --
2014 Lowest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
Highest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
All contract charges -- 17 $ 1,482 0.81% --
FIDELITY(R)/ /VIP EQUITY-INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
Highest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
All contract charges -- 47 $ 1,605 2.14% --
2017 Lowest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
Highest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
All contract charges -- 47 $ 1,798 1.52% --
2016 Lowest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
Highest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
All contract charges -- 42 $ 1,580 2.59% --
2015 Lowest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
Highest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
All contract charges -- 30 $ 1,051 3.14% --
2014 Lowest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
Highest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
All contract charges -- 25 $ 1,007 2.47% --
FIDELITY(R)/ /VIP GOVERNMENT MONEY MARKET PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
Highest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
All contract charges -- 105 $ 1,467 1.43% --
2017 Lowest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
Highest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
All contract charges -- 96 $ 1,089 0.43% --
2016 Lowest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
All contract charges -- 73 $ 1,332 0.02% --
2015 Lowest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
All contract charges -- 67 $ 997 0.01% --
2014 Lowest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
All contract charges -- 73 $ 999 0.01% --
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $299.00 -- -- -- (9.19)%
Highest contract charge 0.90% Service Class 2 $203.46 -- -- -- (10.01)%
All contract charges -- 88 $ 8,795 0.19% --
2017 Lowest contract charge 0.00% Service Class 2 $329.27 -- -- -- 16.61%
Highest contract charge 0.90% Service Class 2 $226.10 -- -- -- 15.56%
All contract charges -- 85 $10,171 1.04% --
2016 Lowest contract charge 0.00% Service Class 2 $282.36 -- -- -- 15.81%
Highest contract charge 0.90% Service Class 2 $195.65 -- -- -- 14.77%
All contract charges -- 78 $ 8,609 1.67% --
|
FSA-147
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO (CONTINUED)
2015 Lowest contract charge 0.00% Service Class 2 $243.82 -- -- -- (2.54)%
Highest contract charge 0.90% Service Class 2 $170.47 -- -- -- (3.42)%
All contract charges -- 75 $ 7,288 1.89% --
2014 Lowest contract charge 0.00% Service Class 2 $250.17 -- -- -- 10.23%
Highest contract charge 0.90% Service Class 2 $176.50 -- -- -- 9.23%
All contract charges -- 68 $ 7,537 1.76% --
FIDELITY(R)/ /VIP HIGH INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
Highest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
All contract charges -- 60 $ 2,637 5.00% --
2017 Lowest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
Highest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
All contract charges -- 78 $ 4,071 5.22% --
2016 Lowest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
Highest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
All contract charges -- 72 $ 3,626 5.77% --
2015 Lowest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
Highest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
All contract charges -- 70 $ 3,378 5.88% --
2014 Lowest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
Highest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
All contract charges -- 72 $ 5,043 5.13% --
FIDELITY(R)/ /VIP INVESTMENT GRADE BOND PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
Highest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
All contract charges -- 771 $36,813 2.34% --
2017 Lowest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
Highest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
All contract charges -- 588 $16,362 1.80% --
2016 Lowest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
Highest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
All contract charges -- 449 $ 9,201 2.76% --
2015 Lowest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
Highest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
All contract charges -- 385 $ 7,133 2.64% --
2014 Lowest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
Highest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
All contract charges -- 262 $ 8,319 2.10% --
FIDELITY(R)/ /VIP MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $495.85 -- -- -- (14.77)%
Highest contract charge 0.90% Service Class 2 $174.36 -- -- -- (15.54)%
All contract charges -- 289 $28,415 0.41% --
2017 Lowest contract charge 0.00% Service Class 2 $581.78 -- -- -- 20.53%
Highest contract charge 0.90% Service Class 2 $206.45 -- -- -- 19.45%
All contract charges -- 238 $31,628 0.51% --
2016 Lowest contract charge 0.00% Service Class 2 $482.67 -- -- -- 11.92%
Highest contract charge 0.90% Service Class 2 $172.83 -- -- -- 10.92%
All contract charges -- 197 $24,006 0.34% --
2015 Lowest contract charge 0.00% Service Class 2 $431.25 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class 2 $155.81 -- -- -- (2.52)%
All contract charges -- 171 $20,947 0.18% --
2014 Lowest contract charge 0.00% Service Class 2 $438.39 -- -- -- 6.03%
Highest contract charge 0.90% Service Class 2 $159.83 -- -- -- 5.08%
All contract charges -- 160 $32,742 0.02% --
|
FSA-148
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP VALUE PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
Highest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
All contract charges -- 36 $ 1,304 0.96% --
2017 Lowest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
Highest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
All contract charges -- 15 $ 808 1.08% --
2016 Lowest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
Highest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
All contract charges -- 12 $ 732 1.07% --
2015 Lowest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
Highest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
All contract charges -- 12 $ 1,247 1.12% --
2014 Lowest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
Highest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
All contract charges -- 9 $ 1,519 1.19% --
FIDELITY(R)/ /VIP VALUE STRATEGIES PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
Highest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
All contract charges -- 7 $ 287 0.58% --
2017 Lowest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
Highest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
All contract charges -- 6 $ 529 1.32% --
2016 Lowest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
Highest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
All contract charges -- 3 $ 334 0.89% --
2015 Lowest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
Highest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
All contract charges -- 4 $ 333 0.90% --
2014 Lowest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
Highest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
All contract charges -- 3 $ 323 0.74% --
FRANKLIN MUTUAL SHARES VIP FUND
2018 Lowest contract charge 0.00% Class 2 $173.91 -- -- -- (9.07)%
Highest contract charge 0.90% Class 2 $160.77 -- -- -- (9.89)%
All contract charges -- 85 $ 8,151 2.27% --
2017 Lowest contract charge 0.00% Class 2 $191.25 -- -- -- 8.35%
Highest contract charge 0.90% Class 2 $178.41 -- -- -- 7.37%
All contract charges -- 101 $10,881 2.25% --
2016 Lowest contract charge 0.00% Class 2 $176.51 -- -- -- 16.06%
Highest contract charge 0.90% Class 2 $166.16 -- -- -- 15.02%
All contract charges -- 95 $10,495 1.93% --
2015 Lowest contract charge 0.00% Class 2 $152.09 -- -- -- (4.94)%
Highest contract charge 0.90% Class 2 $144.46 -- -- -- (5.79)%
All contract charges -- 102 $10,352 3.16% --
2014 Lowest contract charge 0.00% Class 2 $159.99 -- -- -- 7.12%
Highest contract charge 0.90% Class 2 $153.34 -- -- -- 6.15%
All contract charges -- 99 $11,542 2.06% --
FRANKLIN SMALL CAP VALUE VIP FUND
2018 Lowest contract charge 0.00% Class 2 $193.81 -- -- -- (12.87)%
Highest contract charge 0.90% Class 2 $179.16 -- -- -- (13.67)%
All contract charges -- 214 $11,102 0.90% --
2017 Lowest contract charge 0.00% Class 2 $222.45 -- -- -- 10.65%
Highest contract charge 0.90% Class 2 $207.52 -- -- -- 9.66%
All contract charges -- 199 $12,256 0.51% --
|
FSA-149
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FRANKLIN SMALL CAP VALUE VIP FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class 2 $201.04 -- -- -- 30.18%
Highest contract charge 0.90% Class 2 $189.24 -- -- -- 29.02%
All contract charges -- 158 $11,113 0.69% --
2015 Lowest contract charge 0.00% Class 2 $154.43 -- -- -- (7.38)%
Highest contract charge 0.90% Class 2 $146.68 -- -- -- (8.22)%
All contract charges -- 118 $ 5,236 0.63% --
2014 Lowest contract charge 0.00% Class 2 $166.74 -- -- -- 0.57%
Highest contract charge 0.90% Class 2 $159.81 -- -- -- (0.34)%
All contract charges -- 99 $ 5,650 0.61% --
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
2018 Lowest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
Highest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
All contract charges -- 583 $13,523 2.25% --
2017 Lowest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
Highest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
All contract charges -- 574 $14,465 1.49% --
2016 Lowest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
Highest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
All contract charges -- 554 $13,211 1.55% --
2015 Lowest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
Highest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
All contract charges -- 136 $ 3,477 1.62% --
2014 Lowest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
Highest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
All contract charges -- 49 $ 2,094 1.14% --
INVESCO V.I. MID CAP CORE EQUITY FUND
2018 Lowest contract charge 0.00% Series II $159.75 -- -- -- (11.60)%
Highest contract charge 0.90% Series II $147.68 -- -- -- (12.40)%
All contract charges -- 46 $ 3,493 0.13% --
2017 Lowest contract charge 0.00% Series II $180.71 -- -- -- 14.65%
Highest contract charge 0.90% Series II $168.58 -- -- -- 13.62%
All contract charges -- 37 $ 3,804 0.31% --
2016 Lowest contract charge 0.00% Series II $157.62 -- -- -- 13.16%
Highest contract charge 0.90% Series II $148.37 -- -- -- 12.15%
All contract charges -- 31 $ 3,382 0.00% --
2015 Lowest contract charge 0.00% Series II $139.29 -- -- -- (4.27)%
Highest contract charge 0.90% Series II $132.30 -- -- -- (5.14)%
All contract charges -- 29 $ 3,003 0.10% --
2014 Lowest contract charge 0.00% Series II $145.51 -- -- -- 4.17%
Highest contract charge 0.90% Series II $139.47 -- -- -- 3.23%
All contract charges -- 27 $ 3,519 0.00% --
INVESCO V.I. SMALL CAP EQUITY FUND
2018 Lowest contract charge 0.00% Series II $175.15 -- -- -- (15.27)%
Highest contract charge 0.90% Series II $161.91 -- -- -- (16.04)%
All contract charges -- 49 $ 5,092 0.00% --
2017 Lowest contract charge 0.00% Series II $206.72 -- -- -- 13.73%
Highest contract charge 0.90% Series II $192.84 -- -- -- 12.71%
All contract charges -- 39 $ 5,917 0.00% --
2016 Lowest contract charge 0.00% Series II $181.77 -- -- -- 11.84%
Highest contract charge 0.90% Series II $171.10 -- -- -- 10.83%
All contract charges -- 32 $ 4,613 0.00% --
2015 Lowest contract charge 0.00% Series II $162.53 -- -- -- (5.74)%
Highest contract charge 0.90% Series II $154.38 -- -- -- (6.59)%
All contract charges -- 34 $ 4,376 0.00% --
2014 Lowest contract charge 0.00% Series II $172.43 -- -- -- 2.08%
Highest contract charge 0.90% Series II $165.27 -- -- -- 1.17%
All contract charges -- 30 $ 4,096 0.00% --
|
FSA-150
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
IVY VIP GLOBAL EQUITY INCOME
2018 Lowest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
Highest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
All contract charges -- 29 $ 521 1.72% --
2017 Lowest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
Highest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
All contract charges -- 30 $ 1,020 1.15% --
2016 Lowest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
Highest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
All contract charges -- 26 $ 744 1.39% --
2015 Lowest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
Highest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
All contract charges -- 25 $ 524 1.27% --
2014 Lowest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
Highest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
All contract charges -- 27 $ 701 1.13% --
IVY VIP HIGH INCOME
2018 Lowest contract charge 0.00% Class II $119.67 -- -- -- (2.11)%
Highest contract charge 0.90% Class II $113.71 -- -- -- (3.00)%
All contract charges -- 722 $35,498 6.23% --
2017 Lowest contract charge 0.00% Class II $122.25 -- -- -- 6.68%
Highest contract charge 0.90% Class II $117.23 -- -- -- 5.73%
All contract charges -- 556 $32,857 5.40% --
2016 Lowest contract charge 0.00% Class II $114.60 -- -- -- 16.19%
Highest contract charge 0.90% Class II $110.88 -- -- -- 15.14%
All contract charges -- 463 $28,761 6.74% --
2015 Lowest contract charge 0.00% Class II $ 98.63 -- -- -- (6.51)%
Highest contract charge 0.90% Class II $ 96.30 -- -- -- (7.35)%
All contract charges -- 369 $20,390 6.02% --
2014 Lowest contract charge 0.00% Class II $105.50 -- -- -- 1.91%
Highest contract charge 0.90% Class II $103.94 -- -- -- 0.99%
All contract charges -- 230 $17,934 4.14% --
IVY VIP SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class II $192.42 -- -- -- (4.11)%
Highest contract charge 0.90% Class II $177.87 -- -- -- (4.98)%
All contract charges -- 98 $12,355 0.38% --
2017 Lowest contract charge 0.00% Class II $200.67 -- -- -- 23.12%
Highest contract charge 0.90% Class II $187.20 -- -- -- 22.01%
All contract charges -- 81 $12,406 0.00% --
2016 Lowest contract charge 0.00% Class II $162.99 -- -- -- 2.91%
Highest contract charge 0.90% Class II $153.43 -- -- -- 1.99%
All contract charges -- 72 $ 8,691 0.00% --
2015 Lowest contract charge 0.00% Class II $158.38 -- -- -- 1.88%
Highest contract charge 0.90% Class II $150.43 -- -- -- 0.97%
All contract charges -- 75 $ 8,951 0.00% --
2014 Lowest contract charge 0.00% Class II $155.45 -- -- -- 1.59%
Highest contract charge 0.90% Class II $148.99 -- -- -- 0.68%
All contract charges -- 49 $ 5,917 0.00% --
MFS(R)/ /INVESTORS TRUST SERIES
2018 Lowest contract charge 0.00% Service Class $218.20 -- -- -- (5.71)%
Highest contract charge 0.90% Service Class $201.71 -- -- -- (6.56)%
All contract charges -- 14 $ 3,162 0.42% --
2017 Lowest contract charge 0.00% Service Class $231.41 -- -- -- 23.02%
Highest contract charge 0.90% Service Class $215.88 -- -- -- 21.92%
All contract charges -- 18 $ 4,027 0.57% --
|
FSA-151
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MFS(R)/ /INVESTORS TRUST SERIES (CONTINUED)
2016 Lowest contract charge 0.00% Service Class $188.10 -- -- -- 8.32%
Highest contract charge 0.80% Service Class $178.26 -- -- -- 7.45%
All contract charges -- 15 $ 2,618 0.57% --
2015 Lowest contract charge 0.00% Service Class $173.66 -- -- -- (0.05)%
Highest contract charge 0.80% Service Class $165.90 -- -- -- (0.84)%
All contract charges -- 13 $ 2,199 0.70% --
2014 Lowest contract charge 0.00% Service Class $173.74 -- -- -- 10.71%
Highest contract charge 0.80% Service Class $167.31 -- -- -- 9.83%
All contract charges -- 12 $ 2,089 0.80% --
MFS(R)/ /MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO
2018 Lowest contract charge 0.00% Service Class $243.20 -- -- -- 0.57%
Highest contract charge 0.90% Service Class $224.83 -- -- -- (0.33)%
All contract charges -- 26 $ 5,987 0.32% --
2017 Lowest contract charge 0.00% Service Class $241.81 -- -- -- 28.10%
Highest contract charge 0.90% Service Class $225.58 -- -- -- 26.95%
All contract charges -- 20 $ 4,741 0.41% --
2016 Lowest contract charge 0.00% Service Class $188.77 -- -- -- 5.84%
Highest contract charge 0.90% Service Class $177.69 -- -- -- 4.89%
All contract charges -- 19 $ 3,765 0.40% --
2015 Lowest contract charge 0.00% Service Class(b) $178.35 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class(b) $169.40 -- -- -- (2.31)%
All contract charges -- 13 $ 2,155 0.46% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class A $390.01 -- -- -- (0.21)%
Highest contract charge 0.90% Class A $380.73 -- -- -- (1.11)%
All contract charges -- 442 $396,908 0.13% --
2017 Lowest contract charge 0.00% Class A $390.83 -- -- -- 30.35%
Highest contract charge 0.90% Class A $385.02 -- -- -- 29.18%
All contract charges -- 466 $423,844 0.16% --
2016 Lowest contract charge 0.00% Class A $299.83 -- -- -- 3.44%
Highest contract charge 0.90% Class A $298.04 -- -- -- 2.51%
All contract charges -- 498 $351,429 0.53% --
2015 Lowest contract charge 0.00% Class A $289.86 -- -- -- 3.99%
Highest contract charge 0.90% Class A $290.74 -- -- -- 3.06%
All contract charges -- 542 $373,360 0.16% --
2014 Lowest contract charge 0.00% Class A $278.73 -- -- -- 10.66%
Highest contract charge 0.90% Class A $282.12 -- -- -- 9.67%
All contract charges -- 585 $389,941 0.10% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class B $198.63 -- -- -- (0.21)%
Highest contract charge 0.60% Class B $177.24 -- -- -- (0.81)%
All contract charges -- 168 $ 31,185 0.13% --
2017 Lowest contract charge 0.00% Class B $199.05 -- -- -- 30.35%
Highest contract charge 0.60% Class B $178.69 -- -- -- 29.57%
All contract charges -- 175 $ 32,450 0.16% --
2016 Lowest contract charge 0.00% Class B $152.70 -- -- -- 3.43%
Highest contract charge 0.60% Class B $137.91 -- -- -- 2.82%
All contract charges -- 178 $ 25,303 0.53% --
2015 Lowest contract charge 0.00% Class B $147.63 -- -- -- 3.99%
Highest contract charge 0.60% Class B $134.13 -- -- -- 3.37%
All contract charges -- 194 $ 26,699 0.16% --
2014 Lowest contract charge 0.00% Class B $141.96 -- -- -- 10.66%
Highest contract charge 0.60% Class B $129.76 -- -- -- 10.00%
All contract charges -- 203 $ 27,000 0.10% --
|
FSA-152
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class A $178.30 -- -- -- (0.40)%
Highest contract charge 0.60% Class A $169.75 -- -- -- (1.00)%
All contract charges -- 187 $19,048 2.71% --
2017 Lowest contract charge 0.00% Class A $179.01 -- -- -- 3.00%
Highest contract charge 0.60% Class A $171.47 -- -- -- 2.38%
All contract charges -- 180 $20,013 2.08% --
2016 Lowest contract charge 0.00% Class A $173.80 -- -- -- 2.64%
Highest contract charge 0.60% Class A $167.48 -- -- -- 2.02%
All contract charges -- 169 $20,450 2.08% --
2015 Lowest contract charge 0.00% Class A $169.33 -- -- -- 0.12%
Highest contract charge 0.60% Class A $164.16 -- -- -- (0.47)%
All contract charges -- 159 $20,844 1.92% --
2014 Lowest contract charge 0.00% Class A $169.12 -- -- -- 3.75%
Highest contract charge 0.60% Class A $164.94 -- -- -- 3.13%
All contract charges -- 167 $22,443 2.07% --
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class B $183.79 -- -- -- (0.40)%
Highest contract charge 0.90% Class B $157.61 -- -- -- (1.30)%
All contract charges -- 236 $40,858 2.71% --
2017 Lowest contract charge 0.00% Class B $184.52 -- -- -- 3.00%
Highest contract charge 0.90% Class B $159.68 -- -- -- 2.08%
All contract charges -- 256 $44,615 2.08% --
2016 Lowest contract charge 0.00% Class B $179.14 -- -- -- 2.64%
Highest contract charge 0.90% Class B $156.43 -- -- -- 1.72%
All contract charges -- 292 $49,249 2.08% --
2015 Lowest contract charge 0.00% Class B $174.54 -- -- -- 0.13%
Highest contract charge 0.90% Class B $153.79 -- -- -- (0.77)%
All contract charges -- 304 $50,153 1.92% --
2014 Lowest contract charge 0.00% Class B $174.31 -- -- -- 3.74%
Highest contract charge 0.90% Class B $154.99 -- -- -- 2.81%
All contract charges -- 327 $53,881 2.07% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class A $457.16 -- -- -- (5.77)%
Highest contract charge 0.60% Class A $252.28 -- -- -- (6.34)%
All contract charges -- 25 $11,157 0.00% --
2017 Lowest contract charge 0.00% Class A $485.17 -- -- -- 26.67%
Highest contract charge 0.60% Class A $269.36 -- -- -- 25.91%
All contract charges -- 27 $12,687 0.00% --
2016 Lowest contract charge 0.00% Class A $383.02 -- -- -- 6.79%
Highest contract charge 0.60% Class A $213.93 -- -- -- 6.15%
All contract charges -- 28 $10,529 0.10% --
2015 Lowest contract charge 0.00% Class A $358.68 -- -- -- (1.51)%
Highest contract charge 0.60% Class A $201.54 -- -- -- (2.10)%
All contract charges -- 31 $10,804 0.00% --
2014 Lowest contract charge 0.00% Class A $364.19 -- -- -- 4.85%
Highest contract charge 0.60% Class A $205.87 -- -- -- 4.22%
All contract charges -- 33 $11,863 0.00% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B $403.71 -- -- -- (5.77)%
Highest contract charge 0.90% Class B $223.50 -- -- -- (6.63)%
All contract charges -- 58 $15,468 0.00% --
2017 Lowest contract charge 0.00% Class B $428.45 -- -- -- 26.66%
Highest contract charge 0.90% Class B $239.36 -- -- -- 25.52%
All contract charges -- 60 $16,955 0.00% --
|
FSA-153
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER MID CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $338.26 -- -- -- 6.78%
Highest contract charge 0.90% Class B $190.69 -- -- -- 5.82%
All contract charges -- 88 $19,160 0.10% --
2015 Lowest contract charge 0.00% Class B $316.79 -- -- -- (1.52)%
Highest contract charge 0.90% Class B $180.20 -- -- -- (2.41)%
All contract charges -- 97 $19,711 0.00% --
2014 Lowest contract charge 0.00% Class B $321.69 -- -- -- 4.86%
Highest contract charge 0.90% Class B $184.65 -- -- -- 3.92%
All contract charges -- 103 $21,132 0.00% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class A $400.77 -- -- -- (12.75)%
Highest contract charge 0.60% Class A $240.23 -- -- -- (13.27)%
All contract charges -- 35 $ 8,377 0.75% --
2017 Lowest contract charge 0.00% Class A $459.32 -- -- -- 9.28%
Highest contract charge 0.60% Class A $277.00 -- -- -- 8.63%
All contract charges -- 35 $10,131 0.76% --
2016 Lowest contract charge 0.00% Class A $420.32 -- -- -- 19.09%
Highest contract charge 0.60% Class A $255.00 -- -- -- 18.38%
All contract charges -- 39 $10,599 1.02% --
2015 Lowest contract charge 0.00% Class A $352.93 -- -- -- (5.54)%
Highest contract charge 0.60% Class A $215.41 -- -- -- (6.11)%
All contract charges -- 40 $ 9,746 0.68% --
2014 Lowest contract charge 0.00% Class A $373.64 -- -- -- 5.34%
Highest contract charge 0.60% Class A $229.42 -- -- -- 4.70%
All contract charges -- 43 $11,401 0.44% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class B $262.46 -- -- -- (12.75)%
Highest contract charge 0.90% Class B $225.07 -- -- -- (13.53)%
All contract charges -- 103 $24,756 0.75% --
2017 Lowest contract charge 0.00% Class B $300.80 -- -- -- 9.27%
Highest contract charge 0.90% Class B $260.30 -- -- -- 8.29%
All contract charges -- 111 $30,843 0.76% --
2016 Lowest contract charge 0.00% Class B $275.28 -- -- -- 19.08%
Highest contract charge 0.90% Class B $240.37 -- -- -- 18.01%
All contract charges -- 144 $36,624 1.02% --
2015 Lowest contract charge 0.00% Class B $231.18 -- -- -- (5.55)%
Highest contract charge 0.90% Class B $203.69 -- -- -- (6.40)%
All contract charges -- 161 $34,517 0.68% --
2014 Lowest contract charge 0.00% Class B $244.76 -- -- -- 5.34%
Highest contract charge 0.90% Class B $217.62 -- -- -- 4.39%
All contract charges -- 171 $39,089 0.44% --
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class A $723.43 -- -- -- 2.29%
Highest contract charge 0.60% Class A $365.30 -- -- -- 1.68%
All contract charges -- 68 $23,252 0.16% --
2017 Lowest contract charge 0.00% Class A $707.20 -- -- -- 39.12%
Highest contract charge 0.60% Class A $359.27 -- -- -- 38.29%
All contract charges -- 42 $22,064 0.00% --
2016 Lowest contract charge 0.00% Class A $508.34 -- -- -- 8.95%
Highest contract charge 0.60% Class A $259.80 -- -- -- 8.30%
All contract charges -- 43 $17,008 0.01% --
2015 Lowest contract charge 0.00% Class A $466.60 -- -- -- 6.29%
Highest contract charge 0.60% Class A $239.90 -- -- -- 5.65%
All contract charges -- 45 $16,131 0.00% --
2014 Lowest contract charge 0.00% Class A $438.98 -- -- -- 13.55%
Highest contract charge 0.60% Class A $227.06 -- -- -- 12.86%
All contract charges -- 46 $16,479 0.00% --
|
FSA-154
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class B $588.13 -- -- -- 2.29%
Highest contract charge 0.90% Class B $310.88 -- -- -- 1.37%
All contract charges -- 293 $107,753 0.16% --
2017 Lowest contract charge 0.00% Class B $574.94 -- -- -- 39.12%
Highest contract charge 0.90% Class B $306.69 -- -- -- 37.88%
All contract charges -- 292 $105,528 0.00% --
2016 Lowest contract charge 0.00% Class B $413.27 -- -- -- 8.94%
Highest contract charge 0.90% Class B $222.44 -- -- -- 7.96%
All contract charges -- 284 $ 73,856 0.01% --
2015 Lowest contract charge 0.00% Class B $379.34 -- -- -- 6.29%
Highest contract charge 0.90% Class B $206.03 -- -- -- 5.34%
All contract charges -- 301 $ 71,400 0.00% --
2014 Lowest contract charge 0.00% Class B $356.88 -- -- -- 13.55%
Highest contract charge 0.90% Class B $195.59 -- -- -- 12.53%
All contract charges -- 331 $ 73,397 0.00% --
NATURAL RESOURCES PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
Highest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
All contract charges -- 92 $ 1,916 0.00% --
2017 Lowest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
Highest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
All contract charges -- 118 $ 4,277 0.00% --
2016 Lowest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
Highest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
All contract charges -- 102 $ 3,924 0.00% --
2015 Lowest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
Highest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
All contract charges -- 86 $ 2,626 0.00% --
2014 Lowest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
Highest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
All contract charges -- 141 $ 7,525 0.00% --
PIMCO COMMODITYREALRETURN(R)/ /STRATEGY PORTFOLIO
2018 Lowest contract charge 0.00% Advisor Class $ 62.55 -- -- -- (14.21)%
Highest contract charge 0.90% Advisor Class $ 57.82 -- -- -- (14.98)%
All contract charges -- 154 $ 9,531 1.97% --
2017 Lowest contract charge 0.00% Advisor Class $ 72.91 -- -- -- 2.06%
Highest contract charge 0.90% Advisor Class $ 68.01 -- -- -- 1.13%
All contract charges -- 147 $ 10,603 10.89% --
2016 Lowest contract charge 0.00% Advisor Class $ 71.44 -- -- -- 14.87%
Highest contract charge 0.90% Advisor Class $ 67.25 -- -- -- 13.85%
All contract charges -- 136 $ 9,580 1.02% --
2015 Lowest contract charge 0.00% Advisor Class $ 62.19 -- -- -- (25.66)%
Highest contract charge 0.90% Advisor Class $ 59.07 -- -- -- (26.34)%
All contract charges -- 132 $ 8,067 4.22% --
2014 Lowest contract charge 0.00% Advisor Class $ 83.66 -- -- -- (18.75)%
Highest contract charge 0.90% Advisor Class $ 80.19 -- -- -- (19.47)%
All contract charges -- 109 $ 9,010 0.27% --
T. ROWE PRICE EQUITY INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Class II $189.91 -- -- -- (9.69)%
Highest contract charge 0.90% Class II $175.55 -- -- -- (10.51)%
All contract charges -- 70 $ 13,050 1.80% --
2017 Lowest contract charge 0.00% Class II $210.29 -- -- -- 15.73%
Highest contract charge 0.90% Class II $196.17 -- -- -- 14.69%
All contract charges -- 68 $ 13,994 1.51% --
|
FSA-155
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
T. ROWE PRICE EQUITY INCOME PORTFOLIO (CONTINUED)
2016 Lowest contract charge 0.00% Class II $181.71 -- -- -- 18.86%
Highest contract charge 0.90% Class II $171.04 -- -- -- 17.79%
All contract charges -- 71 $12,645 1.79% --
2015 Lowest contract charge 0.00% Class II $152.88 -- -- -- (7.11)%
Highest contract charge 0.90% Class II $145.21 -- -- -- (7.94)%
All contract charges -- 115 $17,055 1.59% --
2014 Lowest contract charge 0.00% Class II $164.58 -- -- -- 7.11%
Highest contract charge 0.90% Class II $157.74 -- -- -- 6.14%
All contract charges -- 127 $20,537 1.50% --
TARGET 2015 ALLOCATION
2018 Lowest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
Highest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
All contract charges -- 47 $ 1,710 1.80% --
2017 Lowest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
Highest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
All contract charges -- 34 $ 1,892 1.51% --
2016 Lowest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
Highest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
All contract charges -- 14 $ 288 1.61% --
2015 Lowest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
Highest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
All contract charges -- 12 $ 223 2.33% --
2014 Lowest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
Highest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
All contract charges -- 2 $ 38 0.78% --
TARGET 2025 ALLOCATION
2018 Lowest contract charge 0.00% Class B $161.71 -- -- -- (6.15)%
Highest contract charge 0.80% Class B $106.39 -- -- -- (6.90)%
All contract charges -- 154 $ 9,626 1.77% --
2017 Lowest contract charge 0.00% Class B $172.30 -- -- -- 15.42%
Highest contract charge 0.80% Class B $114.28 -- -- -- 14.50%
All contract charges -- 119 $ 7,645 1.85% --
2016 Lowest contract charge 0.00% Class B $149.28 -- -- -- 7.41%
Highest contract charge 0.80% Class B(a) $ 99.81 -- -- -- 6.55%
All contract charges -- 69 $ 2,092 1.65% --
2015 Lowest contract charge 0.00% Class B $138.98 -- -- -- (2.04)%
Highest contract charge 0.60% Class B(a) $ 93.80 -- -- -- (5.65)%
All contract charges -- 49 $ 1,261 1.41% --
2014 Lowest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
Highest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
All contract charges -- 46 $ 915 1.55% --
TARGET 2035 ALLOCATION
2018 Lowest contract charge 0.00% Class B $167.54 -- -- -- (7.17)%
Highest contract charge 0.60% Class B $108.41 -- -- -- (7.73)%
All contract charges -- 83 $ 4,750 1.71% --
2017 Lowest contract charge 0.00% Class B $180.49 -- -- -- 17.77%
Highest contract charge 0.60% Class B $117.49 -- -- -- 17.06%
All contract charges -- 52 $ 3,313 1.79% --
2016 Lowest contract charge 0.00% Class B $153.26 -- -- -- 8.03%
Highest contract charge 0.60% Class B $100.37 -- -- -- 7.38%
All contract charges -- 30 $ 1,344 1.57% --
2015 Lowest contract charge 0.00% Class B $141.87 -- -- -- (2.03)%
Highest contract charge 0.60% Class B(a) $ 93.47 -- -- -- (5.98)%
All contract charges -- 24 $ 864 1.43% --
2014 Lowest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
Highest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
All contract charges -- 18 $ 934 1.40% --
|
FSA-156
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TARGET 2045 ALLOCATION
2018 Lowest contract charge 0.00% Class B $170.79 -- -- -- (7.98)%
Highest contract charge 0.60% Class B $109.25 -- -- -- (8.54)%
All contract charges -- 51 $ 2,829 1.88% --
2017 Lowest contract charge 0.00% Class B $185.61 -- -- -- 19.69%
Highest contract charge 0.60% Class B $119.45 -- -- -- 18.97%
All contract charges -- 28 $ 1,776 1.71% --
2016 Lowest contract charge 0.00% Class B $155.07 -- -- -- 8.69%
Highest contract charge 0.60% Class B $100.40 -- -- -- 8.04%
All contract charges -- 15 $ 753 1.65% --
2015 Lowest contract charge 0.00% Class B $142.67 -- -- -- (2.23)%
Highest contract charge 0.60% Class B(a) $ 92.93 -- -- -- (6.52)%
All contract charges -- 16 $ 571 1.91% --
2014 Lowest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
Highest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
All contract charges -- 9 $ 259 1.38% --
TARGET 2055 ALLOCATION
2018 Lowest contract charge 0.00% Class B $114.10 -- -- -- (8.79)%
Highest contract charge 0.60% Class B $111.61 -- -- -- (9.33)%
All contract charges -- 15 $ 937 1.82% --
2017 Lowest contract charge 0.00% Class B $125.09 -- -- -- 21.79%
Highest contract charge 0.60% Class B $123.10 -- -- -- 21.07%
All contract charges -- 8 $ 606 1.71% --
2016 Lowest contract charge 0.00% Class B $102.71 -- -- -- 9.51%
Highest contract charge 0.60% Class B(a) $101.68 -- -- -- 8.85%
All contract charges -- 2 $ 264 1.83% --
2015 Lowest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
Highest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
All contract charges -- -- $ 46 3.95% --
TEMPLETON DEVELOPING MARKETS VIP FUND
2018 Lowest contract charge 0.00% Class 2 $109.63 -- -- -- (15.80)%
Highest contract charge 0.90% Class 2 $101.35 -- -- -- (16.56)%
All contract charges -- 160 $17,140 0.80% --
2017 Lowest contract charge 0.00% Class 2 $130.20 -- -- -- 40.41%
Highest contract charge 0.90% Class 2 $121.46 -- -- -- 39.16%
All contract charges -- 137 $17,444 0.96% --
2016 Lowest contract charge 0.00% Class 2 $ 92.73 -- -- -- 17.44%
Highest contract charge 0.90% Class 2 $ 87.28 -- -- -- 16.39%
All contract charges -- 104 $ 9,563 0.81% --
2015 Lowest contract charge 0.00% Class 2 $ 78.96 -- -- -- (19.60)%
Highest contract charge 0.90% Class 2 $ 74.99 -- -- -- (20.33)%
All contract charges -- 101 $ 7,804 1.97% --
2014 Lowest contract charge 0.00% Class 2 $ 98.21 -- -- -- (8.39)%
Highest contract charge 0.90% Class 2 $ 94.13 -- -- -- (9.21)%
All contract charges -- 99 $ 9,492 1.48% --
TEMPLETON GLOBAL BOND VIP FUND
2018 Lowest contract charge 0.00% Class 2 $127.06 -- -- -- 1.94%
Highest contract charge 0.90% Class 2 $117.46 -- -- -- 1.01%
All contract charges -- 643 $46,400 0.00% --
2017 Lowest contract charge 0.00% Class 2 $124.64 -- -- -- 1.92%
Highest contract charge 0.90% Class 2 $116.28 -- -- -- 1.02%
All contract charges -- 586 $45,630 0.00% --
2016 Lowest contract charge 0.00% Class 2 $122.29 -- -- -- 2.94%
Highest contract charge 0.90% Class 2 $115.11 -- -- -- 2.01%
All contract charges -- 529 $41,472 0.00% --
|
FSA-157
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TEMPLETON GLOBAL BOND VIP FUND (CONTINUED)
2015 Lowest contract charge 0.00% Class 2 $118.80 -- -- -- (4.30)%
Highest contract charge 0.90% Class 2 $112.84 -- -- -- (5.17)%
All contract charges -- 529 $42,461 7.79% --
2014 Lowest contract charge 0.00% Class 2 $124.14 -- -- -- 1.83%
Highest contract charge 0.90% Class 2 $118.99 -- -- -- 0.92%
All contract charges -- 515 $47,540 5.01% --
TEMPLETON GROWTH VIP FUND
2018 Lowest contract charge 0.00% Class 2 $154.60 -- -- -- (14.85)%
Highest contract charge 0.90% Class 2 $142.91 -- -- -- (15.62)%
All contract charges -- 29 $ 4,401 1.97% --
2017 Lowest contract charge 0.00% Class 2 $181.56 -- -- -- 18.50%
Highest contract charge 0.90% Class 2 $169.37 -- -- -- 17.44%
All contract charges -- 30 $ 5,260 1.60% --
2016 Lowest contract charge 0.00% Class 2 $153.21 -- -- -- 9.62%
Highest contract charge 0.90% Class 2 $144.22 -- -- -- 8.64%
All contract charges -- 31 $ 4,575 2.03% --
2015 Lowest contract charge 0.00% Class 2 $139.77 -- -- -- (6.48)%
Highest contract charge 0.90% Class 2 $132.75 -- -- -- (7.33)%
All contract charges -- 33 $ 4,511 2.55% --
2014 Lowest contract charge 0.00% Class 2 $149.46 -- -- -- (2.82)%
Highest contract charge 0.90% Class 2 $143.25 -- -- -- (3.69)%
All contract charges -- 36 $ 5,379 1.34% --
VANECK VIP GLOBAL HARD ASSETS FUND
2018 Lowest contract charge 0.00% Class S Shares $ 59.79 -- -- -- (28.42)%
Highest contract charge 0.90% Class S Shares $ 55.27 -- -- -- (29.07)%
All contract charges -- 143 $ 8,441 0.00% --
2017 Lowest contract charge 0.00% Class S Shares $ 83.53 -- -- -- (1.97)%
Highest contract charge 0.90% Class S Shares $ 77.92 -- -- -- (2.86)%
All contract charges -- 151 $12,427 0.00% --
2016 Lowest contract charge 0.00% Class S Shares $ 85.21 -- -- -- 43.40%
Highest contract charge 0.90% Class S Shares $ 80.21 -- -- -- 42.14%
All contract charges -- 155 $12,986 0.38% --
2015 Lowest contract charge 0.00% Class S Shares $ 59.42 -- -- -- (33.62)%
Highest contract charge 0.90% Class S Shares $ 56.43 -- -- -- (34.23)%
All contract charges -- 147 $ 8,559 0.03% --
2014 Lowest contract charge 0.00% Class S Shares $ 89.52 -- -- -- (19.34)%
Highest contract charge 0.90% Class S Shares $ 85.80 -- -- -- (20.07)%
All contract charges -- 127 $11,178 0.00% --
VANGUARD VARIABLE INSURANCE FUND--EQUITY INDEX PORTFOLIO
2018 Lowest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
Highest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
All contract charges -- 48 $13,016 1.56% --
2017 Lowest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
Highest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
All contract charges -- 31 $ 8,898 1.78% --
2016 Lowest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
Highest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
All contract charges -- 31 $ 7,243 2.38% --
2015 Lowest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
Highest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
All contract charges -- 37 $ 7,894 1.66% --
2014 Lowest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
Highest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
All contract charges -- 36 $ 7,580 1.67% --
|
FSA-158
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 2018
8. Financial Highlights (Concluded)
(a)Units were made available on May 26, 2015.
(b)Units were made available on March 27, 2015.
(c)Units were made available on May 20, 2016.
(d)Units were made available on May 19, 2017.
(e)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a
merger on May 19, 2017.
(f)Units were made available on October 22, 2018.
(g)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap
Value Fund due to a substitution on October 22, 2018.
(h)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
(i)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund
due to a substitution on October 22, 2018.
(j)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund
due to a substitution on October 22, 2018.
(k)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value
Fund due to a substitution on October 22, 2018.
(l)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate
Fund due to a substitution on October 22, 2018.
(m)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
(n)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(o)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a
substitution on October 22, 2018.
(p)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due
to a substitution on October 22, 2018.
(q)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(r)EQ/MFS International Value replaced MFS(R) International Value Portfolio
due to a substitution on October 22, 2018.
(s)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
(t)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(u)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
(v)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the Variable Investment
Option from the Portfolio, divided by the average daily net assets. This
ratio excludes those expenses, such as asset-based charges, that result in
direct reductions in the unit value. The recognition of dividend income by
the Variable Investment Option is affected by the timing of the
declaration of dividends by the Portfolio in which the Variable Investment
Option invests. For those Variable Investment Options with less than a
year of operations, this ratio is not annualized but calculated from the
effective date through the end of the reporting period.
** This ratio represents the total return for the periods indicated,
including changes in the value of the Portfolio, and expenses assessed
through the reduction of unit value. This ratio does not include any
expenses, such as premium and withdrawal charges, as applicable, or
expenses assessed through the redemption of units. The total return would
have been lower had such expenses been included in the calculation.
Variable Investment Options with a date notation indicate the effective
date of the Variable Investment Option, without consideration if there
were units outstanding as of such date. The total return is calculated for
each period indicated from the effective date through the end of the
reporting period. Where there are no units outstanding at period-end, the
total return is calculated using the current offering price of the unit.
For those Variable Investment Options with less than a year of operations,
the total return is not annualized but calculated from the effective date
through the end of the reporting period.
9. Subsequent Events
All material subsequent transactions and events have been evaluated for the
period from December 31, 2018 through April 15, 2019, the date on which the
financial statements were issued. It has been determined that there are no
transactions or events that require adjustment or disclosure in the
financial statements.
FSA-159
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
AXA EQUITABLE LIFE INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm....................................................... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, as of December 31, 2018 and 2017................................................ F-2
Consolidated Statements of Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016............... F-4
Consolidated Statements of Comprehensive Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016. F-5
Consolidated Statements of Equity, for the Years Ended December 31, 2018, 2017 and 2016...................... F-6
Consolidated Statements of Cash Flows, for the Years Ended December 31, 2018, 2017 and 2016.................. F-7
Notes to Consolidated Financial Statements
Note 1 -- Organization..................................................................................... F-10
Note 2 -- Significant Accounting Policies.................................................................. F-10
Note 3 -- Investments...................................................................................... F-26
Note 4 -- Intangible Assets................................................................................ F-41
Note 5 -- Closed Block..................................................................................... F-41
Note 6 -- DAC and Policyholder Bonus Interest Credits...................................................... F-43
Note 7 -- Fair Value Disclosures........................................................................... F-44
Note 8 -- Insurance Liabilities............................................................................ F-56
Note 9 -- Revenue Recognition.............................................................................. F-59
Note 10 -- Reinsurance Agreements.......................................................................... F-59
Note 11 -- Long-term Debt.................................................................................. F-60
Note 12 -- Related Party Transactions...................................................................... F-60
Note 13 -- Employee Benefit Plans.......................................................................... F-64
Note 14 -- Share-Based and Other Compensation Programs..................................................... F-64
Note 15 -- Income Taxes.................................................................................... F-69
Note 16 -- Accumulated Other Comprehensive Income (Loss)................................................... F-71
Note 17 -- Commitments and Contingent Liabilities.......................................................... F-72
Note 18 -- Insurance Group Statutory Financial Information................................................. F-74
Note 19 -- Discontinued Operations......................................................................... F-75
Note 20 -- Revision of Prior Period Financial Statements................................................... F-77
Note 21 -- Quarterly Results of Operations (Unaudited)..................................................... F-83
Note 22 -- Subsequent Events............................................................................... F-99
Audited Consolidated Financial Statement Schedules
Schedule I -- Summary of Investments -- Other than Investments in Related Parties, as of December 31, 2018... F-100
Schedule IV -- Reinsurance, as of and for the Years Ended December 31, 2018, 2017 and 2016................... F-101
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholder of
AXA Equitable Life Insurance Company:
OPINION ON THE FINANCIAL STATEMENTS
We have audited the accompanying consolidated balance sheets of AXA Equitable
Life Insurance Company and its subsidiaries (the Company) as of December 31,
2018 and 2017, and the related consolidated statements of income (loss),
comprehensive income (loss), equity and cash flows for each of the three years
in the period ended December 31, 2018, including the related notes and
financial statement schedules listed in the accompanying index (collectively
referred to as the consolidated financial statements). In our opinion, the
consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2018 and 2017, and the
results of its operations and its cash flows for each of the three years in the
period ended December 31, 2018 in conformity with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 2 to the consolidated financial statements, the Company
changed in 2018 the manner in which it accounts for certain income tax effects
originally recognized in accumulated other comprehensive income.
BASIS FOR OPINION
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's
consolidated financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in
accordance with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part
of our audits we are required to obtain an understanding of internal control
over financial reporting but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audits provide a reasonable basis for
our opinion.
/s/ PricewaterhouseCoopers LLP
New York, NY
March 28, 2019
|
We have served as the Company's auditor since 1993.
F-1
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
ASSETS
Investments:
Fixed maturities available for sale, at fair value
(amortized cost of $42,492 and $34,831)................ $ 41,915 $ 36,358
Mortgage loans on real estate (net of valuation
allowance of $7 and $8)................................ 11,818 10,935
Real estate held for production of income............... 52 390
Policy loans............................................ 3,267 3,315
Other equity investments................................ 1,144 1,264
Trading securities, at fair value....................... 15,166 12,277
Other invested assets................................... 1,554 1,830
--------- ---------
Total investments...................................... 74,916 66,369
Cash and cash equivalents................................. 2,622 2,400
Cash and securities segregated, at fair value............. -- 9
Deferred policy acquisition costs......................... 5,011 4,492
Amounts due from reinsurers............................... 3,124 5,079
Loans to affiliates....................................... 600 703
GMIB reinsurance contract asset, at fair value............ 1,991 10,488
Current and deferred income taxes......................... 438 --
Other assets.............................................. 2,763 4,018
Assets of disposed subsidiary............................. -- 9,835
Separate Accounts assets.................................. 108,487 122,537
--------- ---------
TOTAL ASSETS.............................................. $ 199,952 $ 225,930
========= =========
LIABILITIES
Policyholders' account balances........................... $ 46,403 $ 43,805
Future policy benefits and other
policyholders' liabilities.............................. 29,808 29,070
Broker-dealer related payables............................ 69 430
Securities sold under agreements to repurchase............ 573 1,887
Amounts due to reinsurers................................. 113 134
Long-term debt............................................ -- 203
Loans from affiliates..................................... 572 --
Current and deferred income taxes......................... -- 1,550
Other liabilities......................................... 1,460 1,242
Liabilities of disposed subsidiary........................ -- 4,954
Separate Accounts liabilities............................. 108,487 122,537
--------- ---------
Total Liabilities...................................... $ 187,485 $ 205,812
--------- ---------
Redeemable noncontrolling interest:
Continuing operations................................... $ 39 $ 24
Disposed subsidiary..................................... -- 602
--------- ---------
Redeemable noncontrolling interest..................... $ 39 $ 626
--------- ---------
Commitments and contingent liabilities (Note 17)
|
See Notes to the Consolidated Financial Statements.
F-2
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
(CONTINUED)
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
EQUITY
Equity attributable to AXA Equitable:
Common stock, $1.25 par value; 2,000,000 shares
authorized, issued and outstanding............. $ 2 $ 2
Capital in excess of par value.................. 7,807 6,859
Retained earnings............................... 5,098 8,938
Accumulated other comprehensive income (loss)... (491) 598
--------- ---------
Total equity attributable to AXA Equitable..... 12,416 16,397
--------- ---------
Noncontrolling interest........................... 12 3,095
--------- ---------
Total Equity................................... 12,428 19,492
--------- ---------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY............................. $ 199,952 $ 225,930
========= =========
|
See Notes to the Consolidated Financial Statements.
F-3
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
-------- --------- ---------
(IN MILLIONS)
REVENUES
Policy charges and fee income...................... $ 3,523 $ 3,294 $ 3,311
Premiums........................................... 862 904 880
Net derivative gains (losses)...................... (1,010) 894 (1,321)
Net investment income (loss)....................... 2,478 2,441 2,168
Investment gains (losses), net:
Total other-than-temporary impairment losses..... (37) (13) (65)
Other investment gains (losses), net............. 41 (112) 83
-------- --------- ---------
Total investment gains (losses), net............ 4 (125) 18
-------- --------- ---------
Investment management and service fees............. 1,029 1,007 951
Other income....................................... 65 41 36
-------- --------- ---------
Total revenues.................................. 6,951 8,456 6,043
-------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Policyholders' benefits............................ 3,005 3,473 2,771
Interest credited to policyholders'
account balances................................. 1,002 921 905
Compensation and benefits.......................... 422 327 364
Commissions and distribution related payments...... 620 628 635
Interest expense................................... 34 23 13
Amortization of deferred policy acquisition costs.. 431 900 642
Other operating costs and expenses................. 2,918 635 753
-------- --------- ---------
Total benefits and other deductions............. 8,432 6,907 6,083
-------- --------- ---------
Income (loss) from continuing operations, before
income taxes..................................... (1,481) 1,549 (40)
Income tax (expense) benefit from
continuing operations............................ 446 1,210 164
-------- --------- ---------
Net income (loss) from continuing operations....... (1,035) 2,759 124
Net income (loss) from discontinued operations,
net of taxes and noncontrolling interest......... 114 85 66
-------- --------- ---------
Net income (loss).................................. (921) 2,844 190
Less: net (income) loss attributable to the
noncontrolling interest......................... 3 (1) --
-------- --------- ---------
Net income (loss) attributable to AXA Equitable.... $ (918) $ 2,843 $ 190
======== ========= =========
|
See Notes to the Consolidated Financial Statements.
F-4
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- -------- ------
(IN MILLIONS)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)................................. $ (921) $ 2,844 $ 190
--------- -------- ------
Other Comprehensive income (loss) net of income
taxes:
Change in unrealized gains (losses), net of
reclassification adjustment.................... (1,230) 625 (233)
Changes in defined benefit plan related items
not yet recognized in periodic benefit cost,
net of reclassification adjustment............. (4) (5) (3)
Other comprehensive income (loss) from
discontinued operations........................ -- (18) 17
--------- -------- ------
Total other comprehensive income (loss), net of
income taxes.................................... (1,234) 602 (219)
--------- -------- ------
Comprehensive income (loss) attributable to
AXA Equitable................................... $ (2,155) $ 3,446 $ (29)
========= ======== ======
|
See Notes to the Consolidated Financial Statements.
F-5
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF EQUITY
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
EQUITY ATTRIBUTABLE TO AXA EQUITABLE:
COMMON STOCK, AT PAR VALUE, BEGINNING AND END
OF YEAR........................................ $ 2 $ 2 $ 2
--------- --------- ---------
Capital in excess of par value, beginning
of year........................................ $ 6,859 $ 5,339 $ 5,321
Capital contribution from parent company........ -- 1,500 --
Transfer of deferred tax asset in GMxB Unwind... 1,209 -- --
Settlement of intercompany payables in
GMxB Unwind.................................... (297) -- --
Other........................................... 36 20 18
--------- --------- ---------
CAPITAL IN EXCESS OF PAR VALUE, END OF YEAR..... $ 7,807 $ 6,859 $ 5,339
--------- --------- ---------
Retained earnings, beginning of year............ $ 8,938 $ 6,095 $ 6,955
Cumulative effect of adoption of revenue
recognition standard ASC 606................... 8 -- --
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS
ATTRIBUTE TO DISPOSED SUBSIDIARY............... (83) -- --
Net income (loss) attributable to AXA Equitable. (918) 2,843 190
Dividend to parent company...................... (1,672) -- (1,050)
Distribution of disposed subsidiary............. (1,175) -- --
--------- --------- ---------
RETAINED EARNINGS, END OF YEAR.................. $ 5,098 $ 8,938 $ 6,095
--------- --------- ---------
Accumulated other comprehensive income (loss),
beginning of year.............................. $ 598 $ (4) $ 215
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS........ 83 -- --
Other comprehensive income (loss)............... (1,234) 602 (219)
Transfer of accumulated other comprehensive
income to discontinued operations.............. 62 -- --
--------- --------- ---------
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
END OF YEAR.................................... (491) 598 (4)
--------- --------- ---------
TOTAL AXA EQUITABLE'S EQUITY, END OF YEAR...... $ 12,416 $ 16,397 $ 11,432
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
Noncontrolling interest, continuing operations,
beginning of year.............................. $ 19 $ -- $ --
Net earnings (loss) attributable to
noncontrolling interest........................ 1 -- --
Net earnings (loss) attributable to redeemable
noncontrolling interests....................... 2 (1) --
Consolidation of real estate joint ventures..... -- 19 --
Deconsolidation of real estate joint ventures... (8) -- --
Reclassification of net earnings (loss)
attributable to redeemable
noncontrolling interests....................... (2) 1 --
--------- --------- ---------
NONCONTROLLING INTEREST, CONTINUING OPERATIONS,
END OF YEAR.................................... $ 12 $ 19 $ --
--------- --------- ---------
Noncontrolling interest, discontinued
operations, beginning of year.................. $ 3,076 $ 3,096 $ 3,059
Repurchase of AB Holding Units.................. -- (158) (168)
Net earnings (loss) attributable to
noncontrolling interest........................ -- 485 491
Dividends paid to noncontrolling interest....... -- (457) (384)
Transfer of AB Holding Units.................... (3,076) -- --
Other changes in noncontrolling interest........ -- 110 98
--------- --------- ---------
NONCONTROLLING INTEREST, DISCONTINUED
OPERATIONS, END OF YEAR........................ $ -- $ 3,076 $ 3,096
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST $ 12 $ 3,095 $ 3,096
--------- --------- ---------
TOTAL EQUITY, END OF YEAR......................... $ 12,428 $ 19,492 $ 14,528
========= ========= =========
|
See Notes to the Consolidated Financial Statements.
F-6
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
---------- ---------- ---------
(IN MILLIONS)
NET INCOME (LOSS)/(1)/............................. $ (358) $ 3,377 $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders'
account balances................................ 1,002 921 905
Policy charges and fee income.................... (3,523) (3,294) (3,311)
Net derivative (gains) losses.................... 1,010 (870) 1,337
Investment (gains) losses, net................... (3) 125 (16)
Realized and unrealized (gains) losses on
trading securities.............................. 221 (166) 41
Non-cash long-term incentive compensation
expense/(2)/.................................... 218 185 152
Amortization of deferred cost of
reinsurance asset............................... 1,882 (84) 159
Amortization and depreciation/(2)/............... 340 825 614
Cash received on the recapture of
captive reinsurance............................. 1,273 -- --
Equity (income) loss from limited partnerships... (120) (157) (91)
Changes in:
Net broker-dealer and customer related
receivables/payables.......................... 838 (278) 608
Reinsurance recoverable/(2)/.................... (390) (1,018) (304)
Segregated cash and securities, net............. (345) 130 (381)
Capitalization of deferred policy acquisition
costs/(2)/.................................... (597) (578) (594)
Future policy benefits.......................... (284) 1,189 431
Current and deferred income taxes............... (556) (1,174) (753)
Other, net/(2)/................................. 810 486 56
---------- ---------- ---------
Net cash provided by (used in)
operating activities............................. $ 1,418 $ (381) $ (461)
---------- ---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale............ $ 8,935 $ 9,738 $ 7,154
Mortgage loans on real estate................... 768 934 676
Trading account securities...................... 9,298 9,125 6,271
Real estate joint ventures...................... 139 -- --
Short-term investments/(2)/..................... 2,315 2,204 2,984
Other........................................... 190 228 32
Payment for the purchase/origination of:
Fixed maturities, available-for-sale............ (11,110) (12,465) (7,873)
Mortgage loans on real estate................... (1,642) (2,108) (3,261)
Trading account securities...................... (11,404) (12,667) (8,691)
Short-term investments/(2)/..................... (1,852) (2,456) (3,187)
Other........................................... (170) (280) (250)
Cash settlements related to
derivative instruments.......................... 805 (1,259) 102
Repayments of loans to affiliates................ 900 -- 384
Investment in capitalized software, leasehold
improvements and EDP equipment.................. (115) (100) (85)
Purchase of business, net of cash acquired....... -- (130) (21)
Issuance of loans to affiliates.................. (1,100) -- --
Cash disposed due to distribution of
disposed subsidiary............................. (672) -- --
Other, net/(2)/.................................. (91) 322 407
---------- ---------- ---------
Net cash provided by (used in)
investing activities............................. $ (4,806) $ (8,914) $ (5,358)
---------- ---------- ---------
|
See Notes to the Consolidated Financial Statements.
F-7
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits........................................ $ 9,365 $ 9,334 $ 9,746
Withdrawals..................................... (4,496) (3,926) (2,874)
Transfer (to) from Separate Accounts............ 1,809 1,566 1,202
Change in short-term financings.................. (26) 53 (69)
Change in collateralized pledged assets.......... 1 710 (677)
Change in collateralized pledged liabilities..... (291) 1,108 125
(Decrease) increase in overdrafts payable........ 3 63 (85)
Additional loans from affiliates................. 572 -- --
Shareholder dividends paid....................... (1,672) -- (1,050)
Repurchase of AB Holding Units................... (267) (220) (236)
Purchases (redemptions) of noncontrolling
interests of consolidated company-sponsored
investment funds................................ (472) 120 (137)
Distribution to noncontrolling interest of
consolidated subsidiaries....................... (610) (457) (385)
Increase (decrease) in securities sold under
agreement to repurchase......................... (1,314) (109) 104
(Increase) decrease in securities purchased
under agreement to resell....................... -- -- 79
Capital contribution from parent company......... -- 1,500 --
Other, net....................................... 11 (10) 8
-------- -------- --------
Net cash provided by (used in)
financing activities............................. $ 2,613 $ 9,732 $ 5,751
-------- -------- --------
Effect of exchange rate changes on cash and
cash equivalents................................. (12) 22 (10)
-------- -------- --------
Change in cash and cash equivalents................ (787) 459 (78)
Cash and cash equivalents, beginning of year....... 3,409 2,950 3,028
-------- -------- --------
Cash and cash equivalents, end of year............. $ 2,622 $ 3,409 $ 2,950
======== ======== ========
Cash and cash equivalents of disposed subsidiary:
Beginning of year................................ $ 1,009 $ 1,006 $ 561
======== ======== ========
End of year...................................... $ -- $ 1,009 $ 1,006
======== ======== ========
Cash and cash equivalents of continuing operations
Beginning of year................................ $ 2,400 $ 1,944 $ 2,467
======== ======== ========
End of year...................................... $ 2,622 $ 2,400 $ 1,944
======== ======== ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid.................................... $ -- $ (8) $ (11)
======== ======== ========
Income taxes (refunded) paid..................... $ (8) $ (33) $ 613
======== ======== ========
|
See Notes to the Consolidated Financial Statements.
F-8
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- ----- ------
(IN MILLIONS)
CASH FLOWS OF DISPOSED SUBSIDIARY:
Net cash provided by (used in)
operating activities........................... $ 1,137 $ 715 $1,041
Net cash provided by (used in)
investing activities........................... (102) (297) 323
Net cash provided by (used in)
financing activities........................... (1,360) (437) (909)
Effect of exchange rate changes on cash and
cash equivalents............................... (12) 22 (10)
NON-CASH TRANSACTIONS:
Continuing operations
(Settlement) issuance of long-term debt......... $ (202) $ 202 $ --
======== ===== ======
Transfer of assets to reinsurer................. $ (604) $ -- $ --
======== ===== ======
Repayments of loans from affiliates............. $ 300 $ -- $ --
======== ===== ======
Discontinued operations
Fair value of assets acquired................... $ -- $ -- $ 34
======== ===== ======
Fair value of liabilities assumed............... $ -- $ -- $ 1
======== ===== ======
Payables recorded under contingent
payment arrangements........................... $ -- $ -- $ 12
======== ===== ======
Disposal of subsidiary
Assets disposed................................. $ 9,156 $ -- $ --
Liabilities disposed............................ 4,914 -- --
-------- ----- ------
Net assets disposed............................. 4,242 -- --
Cash disposed................................... 672 -- --
-------- ----- ------
Net non-cash disposed........................... $ 3,570 $ -- $ --
======== ===== ======
|
/(1)/Net income (loss) includes $564 million, $533 million and $496 million in
2018, 2017 and 2016, respectively, of the discontinued operations that are
not included in net income (loss) in the Consolidated Statements of Income
(Loss).
/(2)/Prior period amounts have been reclassified to conform to current period
presentation. See Note 20 for further information.
See Notes to the Consolidated Financial Statements.
F-9
AXA EQUITABLE LIFE INSURANCE COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
Consolidation
AXA Equitable Life Insurance Company's ("AXA Equitable" and, collectively
with its consolidated subsidiaries, the "Company") primary business is
providing life insurance and employee benefit products to both individuals
and businesses. The Company is an indirect, wholly-owned subsidiary of AXA
Equitable Holdings, Inc. ("Holdings"). Prior to the closing of the initial
public offering of shares of Holdings' common stock on May 14, 2018 (the
"IPO"), Holdings was a wholly-owned subsidiary of AXA S.A. ("AXA"), a French
holding company for the AXA Group, a worldwide leader in life, property and
casualty, and health insurance and asset management. As of December 31,
2018, AXA owns approximately 59% of the outstanding common stock of Holdings.
In March 2018, AXA contributed its 0.5% minority interest in AXA Financial,
Inc. ("AXA Financial") to Holdings, increasing Holdings' ownership of AXA
Financial to 100%. On October 1, 2018, AXA Financial merged with and into
its direct parent, Holdings, with Holdings continuing as the surviving
entity (the "AXA Financial Merger"). As a result of the AXA Financial
Merger, Holdings assumed all of AXA Financial's liabilities, including two
assumption agreements under which it legally assumed primary liability for
certain employee benefit plans of AXA Equitable Life and various guarantees
for its subsidiaries.
The accompanying consolidated financial statements represent the
consolidated results and financial position of AXA Equitable and not the
consolidated results and financial position of Holdings.
Discontinued Operations
In the fourth quarter of 2018, the Company transferred its economic interest
in the business of AllianceBernstein Holding L.P. ("AB Holding"),
AllianceBernstein L.P. ("ABLP") and their subsidiaries (collectively, "AB")
to a newly created wholly-owned subsidiary of Holdings (the "AB Business
Transfer"). The results of AB are reflected in the Company's consolidated
financial statements as a discontinued operation and, therefore, are
presented as Assets of disposed subsidiary, Liabilities of disposed
subsidiary on the consolidated balance sheets and Net income (loss) from
discontinued operations, net of taxes, on the consolidated statements of
income (loss). Intercompany transactions between the Company and AB prior to
the AB Business Transfer have been eliminated. Ongoing service transactions
will be reported as related party transactions going forward. See Note 19
for information on discontinued operations and transactions with AB.
As a result of the AB Business Transfer, we have reassessed the Company's
segment structure and concluded that the Company operates as a single
reportable segment as information on a more segmented basis is not evaluated
by the Chief Operating Decision Maker and as such there is only a single
reporting segment.
2) SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The preparation of the accompanying consolidated financial statements in
conformity with accounting principles generally accepted in the United
States of America ("U.S. GAAP") requires management to make estimates and
assumptions (including normal, recurring accruals) that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from these estimates.
The accompanying consolidated financial statements present the consolidated
results of operations, financial condition and cash flows of the Company and
its subsidiaries and those investment companies, partnerships and joint
ventures in which the Company has control and a majority economic interest
as well as those variable interest entities ("VIEs") that meet the
requirements for consolidation.
Financial results in the historical consolidated financial statements may
not be indicative of the results of operations, comprehensive income (loss),
financial position, equity or cash flows that would have been achieved had
we operated as a separate, standalone entity during the reporting periods
presented. We believe that the consolidated financial statements include all
adjustments necessary for a fair presentation of the results of operations
of the Company.
F-10
All significant intercompany transactions and balances have been eliminated
in consolidation. The years "2018", "2017" and "2016" refer to the years
ended December 31, 2018, 2017 and 2016, respectively.
Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
-------------------------------------------------------------------------------------------------------------------
ASU 2014-09: REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606)
-------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that On January 1, 2018, the Company adopted the new revenue
clarifies the principles for recognizing recognition guidance on a modified retrospective basis. The impact
revenue arising from contracts with of the adoption of the new revenue recognition guidance related
customers and develops a common revenue to the disposed subsidiary resulted in an opening retained earnings
standard for U.S. GAAP. adjustment to the Company of $8 million. Adoption did not
change the amounts or timing of the Company's revenue
recognition for investment management and advisory fees related
to continuing operations.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-01: FINANCIAL INSTRUMENTS -- OVERALL (SUBTOPIC 825-10)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance related to On January 1, 2018, the Company adopted the new recognition
the recognition and measurement of financial requirements on a modified retrospective basis for changes in the
assets and financial liabilities. The new fair value of AFS equity securities, resulting in no material
guidance primarily affects the accounting reclassification adjustment from AOCI to opening retained
for equity investments, financial earnings for the net unrealized gains, net of tax, related to
liabilities under the fair value option, and approximately $13 million of common stock securities and
presentation and disclosure requirements for eliminated their designation as AFS equity securities. The Company
financial instruments. The FASB also does not currently report any of its financial liabilities under the
clarified guidance related to the valuation fair value option.
allowance assessment when recognizing
deferred tax assets resulting from
unrealized losses on AFS debt securities.
The new guidance requires equity investments
in unconsolidated entities, except those
accounted for under the equity method, to be
measured at fair value through earnings,
thereby eliminating the AFS classification
for equity securities with readily
determinable fair values for which changes
in fair value currently were reported
in AOCI.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-15: STATEMENT OF CASH FLOWS (TOPIC 230)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance to simplify Adoption of this guidance on January 1, 2018, did not have a
elements of cash flow classification. The material impact on the Company's consolidated financial statements.
new guidance is intended to reduce diversity
in practice in how certain transactions are
classified in the statement of cash flows.
The new guidance requires application of a
retrospective transition method.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-07: COMPENSATION -- RETIREMENT BENEFITS (TOPIC 715)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance on the On January 1, 2018, the Company adopted the change in the
presentation of net periodic pension and income statement presentation utilizing the practical expedient for
post-retirement benefit costs that requires determining the historical components of net benefit costs,
retrospective disaggregation of the service resulting in no material impact to the consolidated financial
cost component from the other components of statements. In addition, no changes to the Company's
net benefit costs on the income statement. capitalization policies with respect to benefit costs resulted from
the adoption of the new guidance.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-09: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
-------------------------------------------------------------------------------------------------------------------
This ASU provides clarity and reduces both Adoption of this amendment on January 1, 2018 did not have a
1) diversity in practice and 2) cost and material impact on the Company's consolidated financial statements.
complexity when applying guidance in Topic
718, Compensation -- Stock Compensation, to
a change to the terms or conditions of a
share-based payment award.
-------------------------------------------------------------------------------------------------------------------
|
F-11
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
------------------------------------------------------------------------------------------------------------------
ASU 2018-02: INCOME STATEMENT -- REPORTING COMPREHENSIVE INCOME
------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that permits The company early adopted the ASU effective October 1, 2018 and
entities to reclassify to retained earnings recognized the impact in the period of adoption. As a result, the
tax effects "stranded" in AOCI resulting company reclassified stranded effects resulting from the Tax Act of
from the change in federal tax rate enacted 2017 by decreasing AOCI and increasing retained earnings by
by the Tax Cuts and Jobs Act (the "Tax $83 million.
Reform Act") on December 22, 2017. If
elected, the stranded tax effects for all
items must be reclassified in AOCI,
including, but not limited to, AFS
securities and employee benefits.
------------------------------------------------------------------------------------------------------------------
ASU 2018-14: COMPENSATION -- RETIREMENT BENEFITS -- DEFINED BENEFIT PLANS -- GENERAL (SUBTOPIC 715-20)
------------------------------------------------------------------------------------------------------------------
This ASU improves the effectiveness of Effective for the year ended December 31, 2018 the Company
disclosures related to defined benefit plans early adopted new guidance that amends the disclosure guidance
in the notes to the financial statements. for employee benefit plans, applied on a retrospective basis to all
The amendments in this ASU remove periods presented. See Note 13 for additional information
disclosures that are no longer considered regarding the Company's employee benefit plans.
cost beneficial, clarify the specific
requirements of disclosures, and add new,
relevant disclosure requirements.
|
Future Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-17: CONSOLIDATION (TOPIC 810): TARGETED IMPROVEMENTS TO RELATED PARTY GUIDANCE FOR
VARIABLE INTEREST ENTITIES
---------------------------------------------------------------------------------------------------
This ASU provides guidance Effective for fiscal years Management currently is
requiring that indirect beginning after December 15, evaluating the impact that
interests held through 2019, and interim periods adoption of this guidance
related parties in common within those fiscal years. will have on the Company's
control arrangements be Early adoption is permitted. consolidated financial
considered on a proportional All entities are required to statements and
basis for determining whether apply the amendments in this related disclosures.
fees paid to decision makers update retrospectively with a
and service providers are cumulative-effect adjustment
variable interests. to retained earnings at the
beginning of the earliest
period presented.
---------------------------------------------------------------------------------------------------
ASU 2018-13: FAIR VALUE MEASUREMENT (TOPIC 820)
---------------------------------------------------------------------------------------------------
This ASU improves the Effective for fiscal years Management currently is
effectiveness of fair value beginning after December 15, evaluating the impact of the
disclosures in the notes to 2019. Early adoption is guidance on the Company's
financial statements. permitted, with the option to financial statement
Amendments in this ASU impact early adopt amendments to disclosures but has concluded
the disclosure requirements remove or modify disclosures, that this guidance will not
in Topic 820, including the with full adoption of impact the Company's
removal, modification and additional disclosure consolidated financial
addition to existing requirements delayed until position or results
disclosure requirements. the stated effective date. of operations.
Amendments on changes in
unrealized gains and losses,
the range and weighted
average of significant
unobservable inputs used to
develop Level 3 fair value
measurements, and the
narrative description of
measurement uncertainty
should be applied
prospectively. All other
amendments should be
applied retrospectively.
---------------------------------------------------------------------------------------------------
|
F-12
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-12: FINANCIAL SERVICES -- INSURANCE (TOPIC 944)
---------------------------------------------------------------------------------------------------
This ASU provides targeted Effective date for public Management currently is
improvements to existing business entities for fiscal evaluating the impact that
recognition, measurement, years and interim periods adoption of this guidance
presentation, and disclosure with those fiscal years, will have on the Company's
requirements for beginning after December 31, consolidated financial
long-duration contracts 2020. Early adoption statements and related
issued by an insurance is permitted. disclosures. The Company has
entity. The ASU primarily formed a project
impacts four key For the liability for future implementation team to work
areas, including: policyholder benefits for on compiling all significant
traditional and limited information needed to assess
Measurement of the liability payment contracts, companies the impact of the new
for future policy benefits can elect one of two adoption guidance, including changes
for traditional and limited methods. Companies can either to system requirements and
payment contracts. The ASU elect a modified internal controls. The
requires companies to review, retrospective transition Company expects adoption of
and if necessary update, cash method applied to contracts the ASU will have a
flow assumptions at least in force as of the beginning significant impact on its
annually for of the earliest period consolidated financial
non-participating traditional presented on the basis of condition, results of
and limited-payment insurance their existing carrying operations, cash flows and
contracts. Interest rates amounts, adjusted for the required disclosures, as well
used to discount the removal of any related as processes and controls.
liability will need to be amounts in AOCI or a full
updated quarterly using an retrospective transition
upper medium grade (low method using actual
credit risk) fixed-income historical experience
instrument yield. information as of contract
inception. The same adoption
Measurement of market risk method must be used for
benefits ("MRBs"). MRBs, as deferred acquisition costs.
defined under the ASU, will
encompass certain GMxB For MRBs, the ASU should be
features associated with applied retrospectively as of
variable annuity products and the earliest period presented
other general account by a retrospective
annuities with other than application to all prior
nominal market risk. The ASU periods.
requires MRBs to be measured
at fair value with changes in For deferred acquisition
value attributable to changes costs, companies can elect
in instrument-specific credit one of two adoption
risk recognized in OCI. methods. Companies can either
elect a modified
Amortization of deferred retrospective transition
acquisition costs. The ASU method applied to contracts
simplifies the amortization in force as of the beginning
of deferred acquisition costs of the earliest period
and other balances amortized presented on the basis of
in proportion to premiums, their existing carrying
gross profits, or gross amounts, adjusted for the
margins, requiring such removal of any related
balances to be amortized on a amounts in AOCI or a full
constant level basis over the retrospective transition
expected term of the method using actual
contracts. Deferred costs historical experience
will be required to be information as of contract
written off for unexpected inception. The same adoption
contract terminations but method must be used for the
will not be subject to liability for future
impairment testing. policyholder benefits for
traditional and limited
Expanded footnote payment contracts.
disclosures. The ASU requires
additional disclosures
including disaggregated
rollforwards of beginning to
ending balances of the
liability for future policy
benefits, policyholder
account balances, MRBs,
separate account liabilities
and deferred acquisition
costs. Companies will also be
required to disclose
information about significant
inputs, judgements,
assumptions and methods used
in measurement.
---------------------------------------------------------------------------------------------------
|
F-13
EFFECT ON THE FINANCIAL STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------------------
ASU 2018-07: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
---------------------------------------------------------------------------------------------------------------
This ASU contains new Effective for public business The Company has granted
guidance that largely aligns entities for fiscal years share-based payment awards
the accounting for beginning after December 15, only to employees as defined
share-based payment awards 2018, including interim by accounting guidance and
issued to employees and periods, with early does not expect this guidance
non-employees. adoption permitted. will have a material impact
on its consolidated
financial statements.
---------------------------------------------------------------------------------------------------------------
ASU 2017-12: DERIVATIVES AND HEDGING (TOPIC 815)
---------------------------------------------------------------------------------------------------------------
The amendments in this ASU Effective for fiscal years Management does not expect
better align an entity's risk beginning after December 15, this guidance will have a
management activities and 2018 and interim periods material impact on the
financial reporting for within those fiscal years, Company's consolidated
hedging relationships through with early adoption financial statements.
changes to both the permitted. The effect of
designation and measurement adoption should be reflected
guidance for qualifying as of the beginning of the
hedging relationships and the fiscal year of adoption.
presentation of hedge results.
---------------------------------------------------------------------------------------------------------------
ASU 2017-08: RECEIVABLES -- NONREFUNDABLE FEES AND OTHER COSTS (SUBTOPIC 310-20)
---------------------------------------------------------------------------------------------------------------
This ASU requires certain Effective for interim and Management does not expect
premiums on callable debt annual periods beginning this guidance will have a
securities to be amortized to after December 15, 2018, with material impact on the
the earliest call date and is early adoption permitted and Company's consolidated
intended to better align is to be applied on a financial statements.
interest income recognition modified retrospective basis.
with the manner in which
market participants price
these instruments.
---------------------------------------------------------------------------------------------------------------
ASU 2016-13: FINANCIAL INSTRUMENTS -- CREDIT LOSSES (TOPIC 326)
---------------------------------------------------------------------------------------------------------------
This ASU contains new Effective for fiscal years Management currently is
guidance which introduces an beginning after December 15, evaluating the impact that
approach based on expected 2019, including interim adoption of this guidance
losses to estimate credit periods within those fiscal will have on the Company's
losses on certain types of years. Early adoption is consolidated financial
financial instruments. It permitted for fiscal years statements. Although early
also modifies the impairment beginning after December 15, adoption is permitted, the
model for available-for-sale 2018, including interim Company expects to adopt ASU
debt securities and provides periods within those fiscal 2016-13 when it becomes
for a simplified accounting years. These amendments effective for the Company on
model for purchased financial should be applied through a January 1, 2020.
assets with credit cumulative-effect adjustment
deterioration since to retained earnings as of
their origination. the beginning of the first
reporting period in which the
guidance is effective.
---------------------------------------------------------------------------------------------------------------
ASU 2016-02: LEASES (TOPIC 842)
---------------------------------------------------------------------------------------------------------------
This ASU contains revised Effective for fiscal years The Company adopted ASU
guidance to lease accounting beginning after December 15, 2016-02, as well as other
that will require lessees to 2018, including interim related clarifications and
recognize on the balance periods within those fiscal interpretive guidance issued
sheet a "right-of-use" asset years, for public business by the FASB effective
and a lease liability for entities. Early application January 1, 2019. The Company
virtually all lease is permitted. Lessees and has identified its
arrangements, including those lessors are required to apply significant existing leases,
embedded in other contracts. a modified retrospective which primarily include real
Lessor accounting will remain transition approach, which estate leases for office
substantially unchanged from includes optional practical space, that will be impacted
the current model but has expedients that entities may by the new guidance. The
been updated to align with elect to apply. In July 2018, Company's adoption of this
certain changes made to the the FASB issued ASU 2018-11 guidance is expected to
lessee model. which allows for an result in a material impact
additional transition method. on the consolidated balance
The Company will adopt the sheets, however it will not
standard utilizing the have a material impact on the
additional transition method, Consolidated Statement of
which allows entities to Income (Loss). The Company's
initially apply the new adoption of this guidance
leases standard at the will result in the
adoption date. recognition, as of January 1,
2019, of additional right of
use (RoU) operating lease
assets ranging from
$300 million to $400 million
and operating lease
liabilities ranging from
$400 million to $500 million,
respectively.
The adoption of this standard
will not have a significant
impact on opening
retained earnings.
|
F-14
Investments
The carrying values of fixed maturities classified as available-for-sale
("AFS") are reported at fair value. Changes in fair value are reported in
other comprehensive income ("OCI"), net of policy related amounts and
deferred income taxes. The amortized cost of fixed maturities is adjusted
for impairments in value deemed to be other than temporary which are
recognized in Investment gains (losses), net. The redeemable preferred stock
investments that are reported in fixed maturities include real estate
investment trusts ("REIT"), perpetual preferred stock and redeemable
preferred stock. These securities may not have a stated maturity, may not be
cumulative and do not provide for mandatory redemption by the issuer.
The Company determines the fair values of fixed maturities and equity
securities based upon quoted prices in active markets, when available, or
through the use of alternative approaches when market quotes are not readily
accessible or available. These alternative approaches include matrix or
model pricing and use of independent pricing services, each supported by
reference to principal market trades or other observable market assumptions
for similar securities. More specifically, the matrix pricing approach to
fair value is a discounted cash flow methodology that incorporates market
interest rates commensurate with the credit quality and duration of the
investment.
The Company's management, with the assistance of its investment advisors,
monitors the investment performance of its portfolio and reviews AFS
securities with unrealized losses for other-than-temporary impairments
("OTTI"). Integral to this review is an assessment made each quarter, on a
security-by-security basis, by the Company's Investments Under Surveillance
("IUS") Committee, of various indicators of credit deterioration to
determine whether the investment security is expected to recover. This
assessment includes, but is not limited to, consideration of the duration
and severity of the unrealized loss, failure, if any, of the issuer of the
security to make scheduled payments, actions taken by rating agencies,
adverse conditions specifically related to the security or sector, the
financial strength, liquidity and continued viability of the issuer.
If there is no intent to sell or likely requirement to dispose of the fixed
maturity security before its recovery, only the credit loss component of any
resulting OTTI is recognized in income (loss) and the remainder of the fair
value loss is recognized in OCI. The amount of credit loss is the shortfall
of the present value of the cash flows expected to be collected as compared
to the amortized cost basis of the security. The present value is calculated
by discounting management's best estimate of projected future cash flows at
the effective interest rate implicit in the debt security at the date of
acquisition. Projections of future cash flows are based on assumptions
regarding probability of default and estimates regarding the amount and
timing of recoveries. These assumptions and estimates require use of
management judgment and consider internal credit analyses as well as market
observable data relevant to the collectability of the security. For mortgage
and asset-backed securities, projected future cash flows also include
assumptions regarding prepayments and underlying collateral value.
Real estate held for the production of income is stated at depreciated cost
less valuation allowances.
Depreciation of real estate held for production of income is computed using
the straight-line method over the estimated useful lives of the properties,
which generally range from 40 to 50 years.
Policy loans represent funds loaned to policyholders up to the cash
surrender value of the associated insurance policies and are carried at the
unpaid principal balances due to the Company from the policyholders.
Interest income on policy loans is recognized in net investment income at
the contract interest rate when earned. Policy loans are fully
collateralized by the cash surrender value of the associated insurance
policies.
Partnerships, investment companies and joint venture interests that the
Company has control of and has an economic interest in or those that meet
the requirements for consolidation under accounting guidance for
consolidation of VIEs are consolidated. Those that the Company does not have
control of and does not have a majority economic interest in and those that
do not meet the VIE requirements for consolidation are reported on the
equity method of accounting and are reported in other equity investments.
The Company records its interests in certain of these partnerships on a
month or one quarter lag.
Trading securities, which include equity securities and fixed maturities,
are carried at fair value based on quoted market prices, with realized and
unrealized gains (losses) reported in net investment income (loss) in the
statements of Net income (loss).
Corporate owned life insurance ("COLI") has been purchased by the Company
and certain subsidiaries on the lives of certain key employees and the
Company and these subsidiaries are named as beneficiaries under these
policies. COLI is carried at the cash surrender value of the policies. At
December 31, 2018, 2017 and 2016 the carrying value of COLI was
$873 million, $911 million and $892 million, respectively, and is reported
in Other invested assets in the consolidated balance sheets.
Cash and cash equivalents includes cash on hand, demand deposits, money
market accounts, overnight commercial paper and highly liquid debt
instruments purchased with an original maturity of three months or less. Due
to the short-term nature of these investments, the recorded value is deemed
to approximate fair value.
F-15
All securities owned, including U.S. government and agency securities,
mortgage-backed securities, futures and forwards transactions, are reported
in the consolidated financial statements on a trade date basis.
Derivatives
Derivatives are financial instruments whose values are derived from interest
rates, foreign exchange rates, financial indices, values of securities or
commodities, credit spreads, market volatility, expected returns and
liquidity. Values can also be affected by changes in estimates and
assumptions, including those related to counterparty behavior and
non-performance risk used in valuation models. Derivative financial
instruments generally used by the Company include equity, currency, and
interest rate futures, total return and/or other equity swaps, interest rate
swaps and floors, swaptions, variance swaps and equity options, all of which
may be exchange-traded or contracted in the over-the-counter market. All
derivative positions are carried in the consolidated balance sheets at fair
value, generally by obtaining quoted market prices or through the use of
valuation models.
Freestanding derivative contracts are reported in the consolidated balance
sheets either as assets within "Other invested assets" or as liabilities
within "Other liabilities". The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related Credit Support Annex ("CSA") have been
executed. The Company uses derivatives to manage asset/liability risk and
has designated some of those economic relationships under the criteria to
qualify for hedge accounting treatment. All changes in the fair value of the
Company's freestanding derivative positions not designated to hedge
accounting relationships, including net receipts and payments, are included
in "Net derivative gains (losses)" without considering changes in the fair
value of the economically associated assets or liabilities.
The Company is a party to financial instruments and other contracts that
contain "embedded" derivative instruments. At inception, the Company
assesses whether the economic characteristics of the embedded instrument are
"clearly and closely related" to the economic characteristics of the
remaining component of the "host contract" and whether a separate instrument
with the same terms as the embedded instrument would meet the definition of
a derivative instrument. When those criteria are satisfied, the resulting
embedded derivative is bifurcated from the host contract, carried in the
consolidated balance sheets at fair value, and changes in its fair value are
recognized immediately and captioned in the consolidated statements of
income (loss) according to the nature of the related host contract. For
certain financial instruments that contain an embedded derivative that
otherwise would need to be bifurcated and reported at fair value, the
Company instead may elect to carry the entire instrument at fair value.
Securities Repurchase and Reverse Repurchase Agreements
Securities repurchase and reverse repurchase transactions involve the
temporary exchange of securities for cash or other collateral of equivalent
value, with agreement to redeliver a like quantity of the same or similar
securities at a future date prior to maturity at a fixed and determinable
price. Transfers of securities under these agreements to repurchase or
resell are evaluated by the Company to determine whether they satisfy the
criteria for accounting treatment as secured borrowing or lending
arrangements. Agreements not meeting the criteria would require recognition
of the transferred securities as sales or purchases with related forward
repurchase or resale commitments. All of the Company's securities repurchase
transactions are accounted for as collateralized borrowings with the related
obligations distinctly captioned in the consolidated balance sheets.
Earnings from investing activities related to the cash received under the
Company's securities repurchase arrangements are reported in the
consolidated statements of income (loss) as "Net investment income" and the
associated borrowing cost is reported as "Interest expense." The Company has
not actively engaged in securities reverse repurchase transactions.
Commercial and Agricultural Mortgage Loans on Real Estate
Mortgage loans are stated at unpaid principal balances, net of unamortized
discounts and valuation allowances. Valuation allowances are based on the
present value of expected future cash flows discounted at the loan's
original effective interest rate or on its collateral value if the loan is
collateral dependent. However, if foreclosure is or becomes probable, the
collateral value measurement method is used.
For commercial and agricultural mortgage loans, an allowance for credit loss
is typically recommended when management believes it is probable that
principal and interest will not be collected according to the contractual
terms. Factors that influence management's judgment in determining allowance
for credit losses include the following:
. Loan-to-value ratio -- Derived from current loan balance divided by
the fair market value of the property. An allowance for credit loss
is typically recommended when the loan-to-value ratio is in excess of
100%. In the case where the loan-to-value is in excess of 100%, the
allowance for credit loss is derived by taking the difference between
the fair market value (less cost of sale) and the current loan
balance.
. Debt service coverage ratio -- Derived from actual operating earnings
divided by annual debt service. If the ratio is below 1.0x, then the
income from the property does not support the debt.
F-16
. Occupancy -- Criteria varies by property type but low or below market
occupancy is an indicator of sub-par property performance.
. Lease expirations -- The percentage of leases expiring in the
upcoming 12 to 36 months are monitored as a decline in rent and/or
occupancy may negatively impact the debt service coverage ratio. In
the case of single-tenant properties or properties with large tenant
exposure, the lease expiration is a material risk factor.
. Maturity -- Mortgage loans that are not fully amortizing and have
upcoming maturities within the next 12 to 24 months are monitored in
conjunction with the capital markets to determine the borrower's
ability to refinance the debt and/or pay off the balloon balance.
. Borrower/tenant related issues -- Financial concerns, potential
bankruptcy or words or actions that indicate imminent default or
abandonment of property.
. Payment status (current vs. delinquent) -- A history of delinquent
payments may be a cause for concern.
. Property condition -- Significant deferred maintenance observed
during the lenders annual site inspections.
. Other -- Any other factors such as current economic conditions may
call into question the performance of the loan.
Mortgage loans also are individually evaluated quarterly by the Company's
IUS Committee for impairment, including an assessment of related collateral
value. Commercial mortgages 60 days or more past due and agricultural
mortgages 90 days or more past due, as well as all mortgages in the process
of foreclosure, are identified as problem mortgages. Based on its monthly
monitoring of mortgages, a class of potential problem mortgages are also
identified, consisting of mortgage loans not currently classified as problem
mortgages but for which management has doubts as to the ability of the
borrower to comply with the present loan payment terms and which may result
in the loan becoming a problem or being restructured. The decision whether
to classify a performing mortgage loan as a potential problem involves
significant subjective judgments by management as to likely future industry
conditions and developments with respect to the borrower or the individual
mortgaged property.
For problem mortgage loans, a valuation allowance is established to provide
for the risk of credit losses inherent in the lending process. The allowance
includes loan specific reserves for mortgage loans determined to be
non-performing as a result of the loan review process. A non-performing loan
is defined as a loan for which it is probable that amounts due according to
the contractual terms of the loan agreement will not be collected. The
loan-specific portion of the loss allowance is based on the Company's
assessment as to ultimate collectability of loan principal and interest.
Valuation allowances for a non-performing loan are recorded based on the
present value of expected future cash flows discounted at the loan's
effective interest rate or based on the fair value of the collateral if the
loan is collateral dependent. The valuation allowance for mortgage loans can
increase or decrease from period to period based on such factors.
Impaired mortgage loans without provision for losses are mortgage loans
where the fair value of the collateral or the net present value of the
expected future cash flows related to the loan equals or exceeds the
recorded investment. Interest income earned on mortgage loans where the
collateral value is used to measure impairment is recorded on a cash basis.
Interest income on mortgage loans where the present value method is used to
measure impairment is accrued on the net carrying value amount of the loan
at the interest rate used to discount the cash flows. Changes in the present
value attributable to changes in the amount or timing of expected cash flows
are reported as investment gains or losses.
Mortgage loans are placed on nonaccrual status once management believes the
collection of accrued interest is doubtful. Once mortgage loans are
classified as nonaccrual mortgage loans, interest income is recognized under
the cash basis of accounting and the resumption of the interest accrual
would commence only after all past due interest has been collected or the
mortgage loan has been restructured to where the collection of interest is
considered likely.
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized
Investment Gains (Losses)
Realized investment gains (losses) are determined by identification with the
specific asset and are presented as a component of revenue. Changes in the
valuation allowances are included in Investment gains (losses), net.
Realized and unrealized holding gains (losses) on trading and equity
securities are reflected in Net investment income (loss).
Unrealized investment gains (losses) on fixed maturities designated as AFS
held by the Company are accounted for as a separate component of AOCI, net
of related deferred income taxes, as are amounts attributable to certain
pension operations, Closed Block's policyholders' dividend obligation,
insurance liability loss recognition, DAC related to UL policies,
investment-type products and participating traditional life policies.
Changes in unrealized gains (losses) reflect changes in fair value of only
those fixed maturities classified as AFS and do not reflect any change in
fair value of policyholders' account balances and future policy benefits.
F-17
Fair Value of Financial Instruments
Fair value is defined as the exchange price that would be received for an
asset or paid to transfer a liability (an exit price) in the principal or
most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. See Note 7
for additional information regarding determining the fair value of financial
instruments.
Recognition of Insurance Income and Related Expenses
Deposits related to universal life ("UL") and investment-type contracts are
reported as deposits to policyholders' account balances. Revenues from these
contracts consist of fees assessed during the period against policyholders'
account balances for mortality charges, policy administration charges and
surrender charges. Policy benefits and claims that are charged to expense
include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized in income
when due. Benefits and expenses are matched with such income so as to result
in the recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future policy
benefits and the deferral and subsequent amortization of DAC.
For contracts with a single premium or a limited number of premium payments
due over a significantly shorter period than the total period over which
benefits are provided, premiums are recorded as revenue when due with any
excess profit deferred and recognized in income in a constant relationship
to insurance in-force or, for annuities, the amount of expected future
benefit payments.
Premiums from individual health contracts are recognized as income over the
period to which the premiums relate in proportion to the amount of insurance
protection provided.
DAC
Acquisition costs that vary with and are primarily related to the
acquisition of new and renewal insurance business, reflecting incremental
direct costs of contract acquisition with independent third parties or
employees that are essential to the contract transaction, as well as the
portion of employee compensation, including payroll fringe benefits and
other costs directly related to underwriting, policy issuance and
processing, medical inspection, and contract selling for successfully
negotiated contracts including commissions, underwriting, agency and policy
issue expenses, are deferred. In each reporting period, DAC is amortized to
Amortization of deferred policy acquisition costs of the accrual of imputed
interest on DAC balances. DAC is subject to recoverability testing at the
time of policy issue and loss recognition testing at the end of each
accounting period.
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings.
AMORTIZATION POLICY
In accordance with the guidance for the accounting and reporting by
insurance enterprises for certain long-duration contracts and participating
contracts and for realized gains and losses from the sale of investments,
current and expected future profit margins for products covered by this
guidance are examined regularly in determining the amortization of DAC.
DAC associated with certain variable annuity products is amortized based on
estimated assessments, with DAC on the remainder of variable annuities, UL
and investment-type products amortized over the expected total life of the
contract group as a constant percentage of estimated gross profits arising
principally from investment results, Separate Accounts fees, mortality and
expense margins and surrender charges based on historical and anticipated
future experience, embedded derivatives and changes in the reserve of
products that have indexed features such as SCS IUL and MSO, updated at the
end of each accounting period. When estimated gross profits are expected to
be negative for multiple years of a contract life, DAC is amortized using
the present value of estimated assessments. The effect on the amortization
of DAC of revisions to estimated gross profits or assessments is reflected
in earnings (loss) in the period such estimated gross profits or assessments
are revised. A decrease in expected gross profits or assessments would
accelerate DAC amortization. Conversely, an increase in expected gross
profits or assessments would slow DAC amortization. The effect on the DAC
assets that would result from realization of unrealized gains (losses) is
recognized with an offset to AOCI in consolidated equity as of the balance
sheet date.
F-18
A significant assumption in the amortization of DAC on variable annuities
and, to a lesser extent, on variable and interest-sensitive life insurance
relates to projected future separate account performance. Management sets
estimated future gross profit or assessment assumptions related to separate
account performance using a long-term view of expected average market
returns by applying a Reversion to the Mean ("RTM") approach, a commonly
used industry practice. This future return approach influences the
projection of fees earned, as well as other sources of estimated gross
profits. Returns that are higher than expectations for a given period
produce higher than expected account balances, increase the fees earned
resulting in higher expected future gross profits and lower DAC amortization
for the period. The opposite occurs when returns are lower than expected.
In applying this approach to develop estimates of future returns, it is
assumed that the market will return to an average gross long-term return
estimate, developed with reference to historical long-term equity market
performance. Management has set limitations as to maximum and minimum future
rate of return assumptions, as well as a limitation on the duration of use
of these maximum or minimum rates of return. At December 31, 2018, the
average gross short-term and long-term annual return estimate on variable
and interest-sensitive life insurance and variable annuities was 7.0% (4.7%
net of product weighted average Separate Accounts fees), and the gross
maximum and minimum short-term annual rate of return limitations were 15.0%
(12.7% net of product weighted average Separate Accounts fees) and 0.0%
((2.3)% net of product weighted average Separate Accounts fees),
respectively. The maximum duration over which these rate limitations may be
applied is five years. This approach will continue to be applied in future
periods. These assumptions of long-term growth are subject to assessment of
the reasonableness of resulting estimates of future return assumptions.
In addition, projections of future mortality assumptions related to variable
and interest-sensitive life products are based on a long-term average of
actual experience. This assumption is updated periodically to reflect recent
experience as it emerges. Improvement of life mortality in future periods
from that currently projected would result in future deceleration of DAC
amortization. Conversely, deterioration of life mortality in future periods
from that currently projected would result in future acceleration of DAC
amortization.
Other significant assumptions underlying gross profit estimates for UL and
investment type products relate to contract persistency and General Account
investment spread.
For participating traditional life policies (substantially all of which are
in the Closed Block), DAC is amortized over the expected total life of the
contract group as a constant percentage based on the present value of the
estimated gross margin amounts expected to be realized over the life of the
contracts using the expected investment yield. At December 31, 2018, the
average rate of assumed investment yields, excluding policy loans, for the
Company was 4.7% grading to 4.3% over six years. Estimated gross margins
include anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. The effect on the accumulated
amortization of DAC of revisions to estimated gross margins is reflected in
earnings in the period such estimated gross margins are revised. The effect
on the DAC assets that would result from realization of unrealized gains
(losses) is recognized with an offset to AOCI in consolidated equity as of
the balance sheet date. Many of the factors that affect gross margins are
included in the determination of the Company's dividends to these
policyholders. DAC adjustments related to participating traditional life
policies do not create significant volatility in results of operations as
the Closed Block recognizes a cumulative policyholder dividend obligation
expense in "Policyholders' dividends," for the excess of actual cumulative
earnings over expected cumulative earnings as determined at the time of
demutualization.
DAC associated with non-participating traditional life policies are
amortized in proportion to anticipated premiums. Assumptions as to
anticipated premiums are estimated at the date of policy issue and are
consistently applied during the life of the contracts. Deviations from
estimated experience are reflected in income (loss) in the period such
deviations occur. For these contracts, the amortization periods generally
are for the total life of the policy. DAC related to these policies are
subject to recoverability testing as part of the Company's premium
deficiency testing. If a premium deficiency exists, DAC are reduced by the
amount of the deficiency or to zero through a charge to current period
earnings (loss). If the deficiency exceeds the DAC balance, the reserve for
future policy benefits is increased by the excess, reflected in earnings
(loss) in the period such deficiency occurs.
For some products, policyholders can elect to modify product benefits,
features, rights or coverages that occur by the exchange of a contract for a
new contract, or by amendment, endorsement, or rider to a contract, or by
election or coverage within a contract. These transactions are known as
internal replacements. If such modification substantially changes the
contract, the associated DAC is written off immediately through income and
any new deferrable costs associated with the replacement contract are
deferred. If the modification does not substantially change the contract,
the DAC amortization on the original contract will continue and any
acquisition costs associated with the related modification are expensed.
Reinsurance
For each of its reinsurance agreements, the Company determines whether the
agreement provides indemnification against loss or liability relating to
insurance risk in accordance with applicable accounting standards. Cessions
under reinsurance agreements do not discharge the
F-19
Company's obligations as the primary insurer. The Company reviews all
contractual features, including those that may limit the amount of insurance
risk to which the reinsurer is subject or features that delay the timely
reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the
inception of the reinsurance agreement. The net cost of reinsurance is
recorded as an adjustment to DAC and recognized as a component of other
expenses on a basis consistent with the way the acquisition costs on the
underlying reinsured contracts would be recognized. Subsequent amounts
paid (received) on the reinsurance of in-force blocks, as well as amounts
paid (received) related to new business, are recorded as Premiums
ceded (assumed); and Amounts due from reinsurers (Amounts due to reinsurers)
are established.
Amounts currently recoverable under reinsurance agreements are included in
Amounts due from reinsurers and amounts currently payable are included in
Amounts due to reinsurers. Assets and liabilities relating to reinsurance
agreements with the same reinsurer may be recorded net on the balance sheet,
if a right of offset exists within the reinsurance agreement. In the event
that reinsurers do not meet their obligations to the Company under the terms
of the reinsurance agreements, reinsurance recoverable balances could become
uncollectible. In such instances, reinsurance recoverable balances are
stated net of allowances for uncollectible reinsurance.
Premiums, Policy charges and fee income and Policyholders' benefits include
amounts assumed under reinsurance agreements and are net of reinsurance
ceded. Amounts received from reinsurers for policy administration are
reported in other revenues. With respect to GMIBs, a portion of the directly
written GMIBs are accounted for as insurance liabilities, but the associated
reinsurance agreements contain embedded derivatives. These embedded
derivatives are included in GMIB reinsurance contract asset, at fair value
with changes in estimated fair value reported in Net derivative gains
(losses).
If the Company determines that a reinsurance agreement does not expose the
reinsurer to a reasonable possibility of a significant loss from insurance
risk, the Company records the agreement using the deposit method of
accounting. Deposits received are included in Other liabilities and deposits
made are included within premiums, reinsurance and other receivables. As
amounts are paid or received, consistent with the underlying contracts, the
deposit assets or liabilities are adjusted. Interest on such deposits is
recorded as other revenues or other expenses, as appropriate. Periodically,
the Company evaluates the adequacy of the expected payments or recoveries
and adjusts the deposit asset or liability through other revenues or other
expenses, as appropriate.
For reinsurance contracts other than those accounted for as derivatives,
reinsurance recoverable balances are calculated using methodologies and
assumptions that are consistent with those used to calculate the direct
liabilities.
Policyholder Bonus Interest Credits
Policyholder bonus interest credits are offered on certain deferred annuity
products in the form of either immediate bonus interest credited or enhanced
interest crediting rates for a period of time. The interest crediting
expense associated with these policyholder bonus interest credits is
deferred and amortized over the lives of the underlying contracts in a
manner consistent with the amortization of DAC. Unamortized balances are
included in Other assets in the consolidated balance sheets and amortization
is included in Interest credited to policyholders' account balances in the
consolidated statements of income (loss).
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances relate to contracts or contract features
where the Company has no significant insurance risk. This liability
represents the contract value that has accrued to the benefit of the
policyholder as of the balance sheet date.
For participating traditional life insurance policies, future policy benefit
liabilities are calculated using a net level premium method on the basis of
actuarial insurance assumptions equal to guaranteed mortality and dividend
fund interest rates. The liability for annual dividends represents the
accrual of annual dividends earned. Terminal dividends are accrued in
proportion to gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on the
basis of actuarial assumptions as to mortality, persistency and interest
established at policy issue. Assumptions established at policy issue as to
mortality and persistency are based on the Company's experience that,
together with interest and expense assumptions, includes a margin for
adverse deviation. Benefit liabilities for traditional annuities during the
accumulation period are equal to accumulated policyholders' fund balances
and, after annuitization, are equal to the present value of expected future
payments. Interest rates used in establishing such liabilities range from
4.5% to 6.3% (weighted average of 5.0%) for approximately 99.2% of life
insurance liabilities and from 1.6% to 5.5% (weighted average of 4.8%) for
annuity liabilities.
F-20
Individual health benefit liabilities for active lives are estimated using
the net level premium method and assumptions as to future morbidity,
withdrawals and interest. Benefit liabilities for disabled lives are
estimated using the present value of benefits method and experience
assumptions as to claim terminations, expenses and interest. While
management believes its disability income ("DI") reserves have been
calculated on a reasonable basis and are adequate, there can be no assurance
reserves will be sufficient to provide for future liabilities.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for a product are insufficient to provide for
expected future policy benefits and expenses for that product, DAC is
written off and thereafter, if required, a premium deficiency reserve is
established by a charge to earnings.
Funding agreements are also reported in Policyholders' account balances in
the consolidated balance sheets. As a member of the Federal Home Loan Bank
of New York ("FHLBNY"), the Company has access to collateralized borrowings.
The Company may also issue funding agreements to the FHLBNY. Both the
collateralized borrowings and funding agreements would require the Company
to pledge qualified mortgage-backed assets and/or government securities as
collateral.
The Company has issued and continues to offer certain variable annuity
products with guaranteed minimum death benefits ("GMDB") and/or contain a
guaranteed minimum living benefit ("GMLB," and together with GMDB, the "GMxB
features") which, if elected by the policyholder after a stipulated waiting
period from contract issuance, guarantees a minimum lifetime annuity based
on predetermined annuity purchase rates that may be in excess of what the
contract account value can purchase at then-current annuity purchase rates.
This minimum lifetime annuity is based on predetermined annuity purchase
rates applied to a guaranteed minimum income benefit ("GMIB") base. The
Company previously issued certain variable annuity products with and
guaranteed income benefit ("GIB") features, guaranteed withdrawal benefit
for life ("GWBL"), guaranteed minimum withdrawal benefit ("GMWB") and
guaranteed minimum accumulation benefit ("GMAB") features. The Company has
also assumed reinsurance for products with GMxB features.
Reserves for products that have GMIB features, but do not have no-lapse
guarantee features, and products with GMDB features are determined by
estimating the expected value of death or income benefits in excess of the
projected contract accumulation value and recognizing the excess over the
estimated life based on expected assessments (i.e., benefit ratio). The
determination of this estimated liability is based on models that involve
numerous estimates and subjective judgments, including those regarding
expected market rates of return and volatility, contract surrender and
withdrawal rates, mortality experience, and, for contracts with the GMIB
feature, GMIB election rates. Assumptions regarding separate account
performance used for purposes of this calculation are set using a long-term
view of expected average market returns by applying a RTM approach,
consistent with that used for DAC amortization. There can be no assurance
that actual experience will be consistent with management's estimates.
Products that have a GMIB feature with a no-lapse guarantee rider
("GMIBNLG"), GIB, GWBL, GMWB and GMAB features and the assumed products with
GMIB features (collectively "GMxB derivative features") are considered
either freestanding or embedded derivatives and discussed below under
("Embedded and Freestanding Insurance Derivatives").
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings. Premium deficiency reserves
have been recorded for the group single premium annuity business, certain
interest-sensitive life contracts, structured settlements, individual
disability income and major medical. Additionally, in certain instances the
policyholder liability for a particular line of business may not be
deficient in the aggregate to trigger loss recognition, but the pattern of
earnings may be such that profits are expected to be recognized in earlier
years followed by losses in later years. This pattern of profits followed by
losses is exhibited in our VISL business and is generated by the cost
structure of the product or secondary guarantees in the contract. The
secondary guarantee ensures that, subject to specified conditions, the
policy will not terminate and will continue to provide a death benefit even
if there is insufficient policy value to cover the monthly deductions and
charges. We accrue for these Profits Followed by Losses ("PFBL") using a
dynamic approach that changes over time as the projection of future losses
change.
Embedded and Freestanding Insurance Derivatives
Reserves for products considered either embedded or freestanding derivatives
are measured at estimated fair value separately from the host variable
annuity product, with changes in estimated fair value reported in Net
derivative gains (losses). The estimated fair values of these derivatives
are determined based on the present value of projected future benefits minus
the present value of projected future fees attributable to the guarantee.
The projections of future benefits and future fees require capital markets
and actuarial assumptions, including expectations concerning policyholder
behavior. A risk-neutral valuation methodology is used under which the cash
flows from the guarantees are projected under multiple capital market
scenarios using observable risk-free rates.
F-21
Additionally, the Company cedes and assumes reinsurance of products with
GMxB features, which are considered either an embedded or freestanding
derivative and measured at fair value. The GMxB reinsurance contract asset
and liabilities' fair values reflect the present value of reinsurance
premiums and recoveries and risk margins over a range of market-consistent
economic scenarios.
Changes in the fair value of embedded and freestanding derivatives are
reported in Net derivative gains (losses). Embedded derivatives in direct
and assumed reinsurance contracts are reported in Future policyholders'
benefits and other policyholders' liabilities and embedded derivatives in
ceded reinsurance contracts are reported in the GMIB reinsurance contract
asset, at fair value in the consolidated balance sheets.
Embedded and freestanding insurance derivatives fair values are determined
based on the present value of projected future benefits minus the present
value of projected future fees. At policy inception, a portion of the
projected future guarantee fees to be collected from the policyholder equal
to the present value of projected future guaranteed benefits is attributed
to the embedded derivative. The percentage of fees included in the fair
value measurement is locked-in at inception. Fees above those amounts
represent "excess" fees and are reported in Policy charges and fee income.
Policyholders' Dividends
The amount of policyholders' dividends to be paid (including dividends on
policies included in the Closed Block) is determined annually by the board
of directors of the issuing insurance company. The aggregate amount of
policyholders' dividends is related to actual interest, mortality, morbidity
and expense experience for the year and judgment as to the appropriate level
of statutory surplus to be retained by the Company.
Separate Accounts
Generally, Separate Accounts established under New York State and Arizona
State Insurance Law are not chargeable with liabilities that arise from any
other business of the Company. Separate Accounts assets are subject to
General Account claims only to the extent Separate Accounts assets exceed
separate accounts liabilities. Assets and liabilities of the Separate
Account represent the net deposits and accumulated net investment earnings
(loss) less fees, held primarily for the benefit of policyholders, and for
which the Company does not bear the investment risk. Separate Accounts
assets and liabilities are shown on separate lines in the consolidated
balance sheets. Assets held in Separate Accounts are reported at quoted
market values or, where quoted values are not readily available or
accessible for these securities, their fair value measures most often are
determined through the use of model pricing that effectively discounts
prospective cash flows to present value using appropriate sector-adjusted
credit spreads commensurate with the security's duration, also taking into
consideration issuer-specific credit quality and liquidity. Investment
performance (including investment income, net investment gains (losses) and
changes in unrealized gains (losses)) and the corresponding amounts credited
to policyholders of such Separate Accounts are offset within the same line
in the consolidated statements of income (loss). For 2018, 2017 and 2016,
investment results of such Separate Accounts were losses of $7.2 billion,
and gains of $16.7 billion and $8.2 billion, respectively.
Deposits to Separate Accounts are reported as increases in Separate Accounts
assets and liabilities and are not reported in revenues or expenses.
Mortality, policy administration and surrender charges on all policies
including those funded by Separate Accounts are included in revenues.
The Company reports the General Account's interests in Separate Accounts as
Other trading in the consolidated balance sheets.
Broker-Dealer Revenues, Receivables and Payables
AXA Advisors and certain of the Company's other subsidiaries provide
investment management, brokerage and distribution services for affiliates
and third parties. Third-party revenues earned from these services are
reported in Other income in the Company's consolidated statement of income
(loss).
Receivables from and payables to clients include amounts due on cash and
margin transactions. Securities owned by customers are held as collateral
for receivables; such collateral is not reflected in the consolidated
financial statements.
Internal-use Software
Capitalized internal-use software, included in Other assets in the
consolidated balance sheets, is amortized on a straight-line basis over the
estimated useful life of the software that ranges between three and five
years. Capitalized amounts are periodically tested for impairment in
accordance with the guidance on impairment of long-lived assets. An
immediate charge to earnings is recognized if capitalized software costs no
longer are deemed to be recoverable. In addition, service potential is
periodically reassessed to determine whether facts and circumstances have
compressed the software's useful life such that acceleration of amortization
over a shorter period than initially determined would be required.
F-22
Long-Term Debt
Liabilities for long-term debt are primarily carried at an amount equal to
unpaid principal balance, net of unamortized discount or premium and debt
issue costs. Original-issue discount or premium and debt-issue costs are
recognized as a component of interest expense over the period the debt is
expected to be outstanding, using the interest method of amortization.
Interest expense is generally presented within Interest expense in the
consolidated statements of income (loss). See Note 11 for additional
information regarding long-term debt.
Income Taxes
The Company and certain of its consolidated subsidiaries and affiliates file
a consolidated federal income tax return. The Company provides for federal
and state income taxes currently payable, as well as those deferred due to
temporary differences between the financial reporting and tax bases of
assets and liabilities. Current federal income taxes are charged or credited
to operations based upon amounts estimated to be payable or recoverable as a
result of taxable operations for the current year. Deferred income tax
assets and liabilities are recognized based on the difference between
financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws. Valuation allowances
are established when management determines, based on available information,
that it is more likely than not that deferred tax assets will not be
realized.
Under accounting for uncertainty in income taxes guidance, the Company
determines whether it is more likely than not that a tax position will be
sustained upon examination by the appropriate taxing authorities before any
part of the benefit can be recorded in the consolidated financial
statements. Tax positions are then measured at the largest amount of benefit
that is greater than 50% likely of being realized upon settlement.
Recognition of Investment Management and Service Fees and Related Expenses
INVESTMENT MANAGEMENT, ADVISORY AND SERVICE FEES
Reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are investment management and
administrative service fees earned by AXA Equitable Funds Management Group,
LLC ("AXA Equitable FMG") as well as certain asset-based fees associated
with insurance contracts.
AXA Equitable FMG provides investment management and administrative
services, such as fund accounting and compliance services, to AXA Premier
VIP Trust ("VIP Trust"), EQ Advisors Trust ("EQAT") and 1290 Funds as well
as two private investment trusts established in the Cayman Islands, AXA
Allocation Funds Trust and AXA Offshore Multimanager Funds Trust
(collectively, the "Other AXA Trusts"). The contracts supporting these
revenue streams create a distinct, separately identifiable performance
obligation for each day the assets are managed for the performance of a
series of services that are substantially the same and have the same pattern
of transfer to the customer. Accordingly, these investment management,
advisory, and administrative service base fees are recorded over time as
services are performed and entitle the Company to variable consideration.
Base fees, generally calculated as a percentage of assets under management
("AUM"), are recognized as revenue at month-end when the transaction price
no longer is variable and the value of the consideration is determined.
These fees are not subject to claw back and there is minimal probability
that a significant reversal of the revenue recorded will occur.
Sub-advisory and sub-administrative expenses associated with these services
are calculated and recorded as the related services are performed in Other
operating costs and expense in the consolidated statements of income (loss)
as the Company is acting in a principal capacity in these transactions and,
as such, reflects these revenues and expenses on a gross basis.
DISTRIBUTION SERVICES
Revenues from distribution services include fees received as partial
reimbursement of expenses incurred in connection with the sale of certain
mutual funds and the 1290 Funds and for the distribution primarily of EQAT
and VIP Trust shares to separate accounts in connection with the sale of
variable life and annuity contracts. The amount and timing of revenues
recognized from performance of these distribution services often is
dependent upon the contractual arrangements with the customer and the
specific product sold as further described below.
Most open-end management investment companies, such as U.S. funds and the
EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1
of the Investment Company Act that allows for certain share classes to pay
out of assets, distribution and service fees for the distribution and sale
of its shares ("12b-1 Fees"). These open-end management investment companies
have such agreements with the Company, and the Company has selling and
distribution agreements pursuant to which it pays sales commissions to the
financial intermediaries that distribute the shares. These agreements may be
terminated by either party upon notice (generally 30 days) and do not
obligate the financial intermediary to sell any specific amount of shares.
F-23
The Company records 12b-1 fees monthly based upon a percentage of the net
asset value ("NAV") of the funds. At month-end, the variable consideration
of the transaction price is no longer constrained as the NAV can be
calculated and the value of consideration is determined. These services are
separate and distinct from other asset management services as the customer
can benefit from these services independently of other services. The Company
accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the
expenses are incurred. The Company is acting in a principal capacity in
these transactions; as such, these revenues and expenses are recorded on a
gross basis in the consolidated statements of income (loss).
OTHER REVENUES
Also reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are other revenues from contracts
with customers, primarily consisting of mutual fund reimbursements and other
brokerage income.
OTHER INCOME
Revenues from contracts with customers reported as Other Income in the
Company's consolidated statements of income (loss) primarily consist of
advisory account fees and brokerage commissions from the Company's
subsidiary broker-dealer operations and sales commissions from the Company's
general agent for the distribution of non-affiliate insurers' life insurance
and annuity products. These revenues are recognized at month-end when
constraining factors, such as AUM and product mix, are resolved and the
transaction pricing no longer is variable such that the value of
consideration can be determined.
Discontinued Operations
The results of operations of a component of the Company that has been
disposed of are reported in discontinued operations if certain criteria are
met; such as if the disposal represents a strategic shift that has or will
have a major effect on the Company's operations and financial results. The
results of AB are reflected in the Company's consolidated financial
statements as discontinued operations and, therefore, are presented as
assets and liabilities of disposed subsidiary on the consolidated balance
sheets and net income (loss) from discontinued operations, net of taxes and
noncontrolling interest on the consolidated statements of income
(loss). Intercompany transactions between the Company and AB prior to the
disposal have been eliminated. See Note 19 for information on discontinued
operations and transactions with AB.
Assumption Updates and Model Changes
In 2018, the Company began conducting its annual review of our assumptions
and models during the third quarter, consistent with industry practice. The
annual review encompasses assumptions underlying the valuation of unearned
revenue liabilities, embedded derivatives for our insurance business,
liabilities for future policyholder benefits, DAC and deferred sales
inducement assets ("DSI"). As a result of this review, some assumptions were
updated, resulting in increases and decreases in the carrying values of
these product liabilities and assets.
The net impact of assumption changes in the third quarter of 2018 decreased
Policy charges and fee income by $12 million, decreased Policyholders'
benefits by $684 million, increased Net derivative losses by $1.1 billion,
and decreased the Amortization of DAC by $165 million. This resulted in a
decrease in the third quarter of 2018 in Income (loss) from operations,
before income taxes of $228 million and decreased Net income (loss) by
approximately $187 million.
In 2017, the Company made several assumption updates and model changes,
including the following: (1) updated the expectation of long-term Separate
Accounts volatility used in estimating policyholders' benefits for variable
annuities with GMDB and GMIB guarantees and variable universal life
contracts with secondary guarantees; (2) updated the estimated duration used
to calculate policyholders' benefits for variable annuities with GMDB and
GMIB guarantees and the period over which DAC is amortized; (3) updated
policyholder behavior assumptions based on emerging experience, including
expectations of long-term lapse and partial withdrawal rates for variable
annuities with GMxB features; (4) updated premium funding assumptions for
certain universal life and variable universal life products with secondary
guarantees; (5) completed its periodic review and updated its long-term
mortality assumption for universal, variable universal and traditional life
products; (6) updated the assumption for long-term General Account spread
and yield assumptions in the DAC amortization and loss recognition testing
calculations for universal life, variable universal life and deferred
annuity business lines; (7) updated our maintenance expense assumption for
universal life and variable universal life products; and (8) implemented
other actuarial assumption updates and model changes, resulting in the full
release of the reserve. The net impact of assumption changes in 2017
increased Policyholders' benefits by $23 million, decreased the Amortization
of DAC by $247 million, decreased Policy charges and fee income by
$88 million, increased the fair value of our GMIB reinsurance asset by
$1.5 billion and decreased the fair value of the GMIBNLG liability by
$447 million. This resulted in an increase in Income (loss) from operations,
before income taxes of $1.7 billion and increased Net income by
approximately $1.1 billion.
In 2016, the Company made several assumption updates and model changes
including the following (1) updated the premium funding assumption used in
setting variable life policyholder benefit reserves; (2) made changes in the
model used in calculating premium loads,
F-24
which increased interest sensitive life policyholder benefit reserves;
(3) updated its mortality assumption for certain variable interest-sensitive
life ("VISL") products as a result of favorable mortality experience for
some of its older products and unfavorable mortality experience on some of
its newer products and (4) updated the General Account spread and yield
assumptions for certain VISL products to reflect lower expected investment
yields. The net impact of assumption updates and model changes in 2016
decreased Policyholders' benefits by $135 million, increased the
Amortization of DAC by $193 million, increased Policy charges and fee income
by $35 million, decreased Income (loss) from operations, before income taxes
by $23 million and decreased Net income by approximately $15 million.
Revision of Prior Year Financial Statements
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these mis-classifications were
not material to the financial statements of any period. However, in order to
improve the consistency and comparability of the financial statements,
management revised the consolidated statements of cash flows for the year
ended December 31, 2017. See Note 21 for further information.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification.
The reclassification adjustments for the years ended December 31, 2017 and
2016 are presented in the table below. Capitalization of DAC reclassified to
Compensation and benefits, Commissions and distribution plan payments, and
Other operating costs and expenses reduced the amounts previously reported
in those expense line items, while the capitalization of DAC reclassified
from the Amortization of deferred policy acquisition costs line item
increases that expense line item.
Years Ended December 31,
----------------------------
2017 2016
--------------- ------------
(in millions)
REDUCTIONS TO EXPENSE LINE ITEMS:
Compensation and benefits............................ $ 128 $ 128
Commissions and distribution plan payments........... 443 460
Other operating costs and expenses................... 7 6
--------------- ------------
Total reductions.................................... $ 578 $ 594
=============== ============
INCREASE TO EXPENSE LINE ITEM:
--------------- ------------
Amortization of deferred policy acquisition costs.... $ 578 $ 594
=============== ============
|
F-25
3) INVESTMENTS
Fixed Maturities
The following tables provide information relating to fixed maturities
classified as AFS. As a result of the adoption of "Financial
Instruments -- Recognition and Measurement of Financial Assets and Financial
Liabilities" (ASU 2016-01) on January 1, 2018 (see Note 2), equity
securities are no longer classified and accounted for as available-for-sale
securities.
AVAILABLE-FOR-SALE SECURITIES BY CLASSIFICATION
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED OTTI
COST GAINS LOSSES FAIR VALUE IN AOCI/(4)/
---------- ------------- ----------- ----------- ------------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 26,690 $ 385 $ 699 $ 26,376 $ --
U.S. Treasury, government and agency....... 13,646 143 454 13,335 --
States and political subdivisions.......... 408 47 1 454 --
Foreign governments........................ 515 17 13 519 --
Residential mortgage-backed/(2)/........... 193 9 -- 202 --
Asset-backed/(3)/.......................... 600 1 11 590 2
Redeemable preferred stock................. 440 16 17 439 --
---------- ------------- ----------- ----------- ------------
TOTAL AT DECEMBER 31, 2018................... $ 42,492 $ 618 $ 1,195 $ 41,915 $ 2
========== ============= =========== =========== ============
December 31, 2017:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 20,596 $ 942 $ 56 $ 21,482 $ --
U.S. Treasury, government and agency....... 12,644 676 185 13,135 --
States and political subdivisions.......... 414 67 -- 481 --
Foreign governments........................ 387 27 5 409 --
Residential mortgage-backed/(2)/........... 236 15 -- 251 --
Asset-backed/(3)/.......................... 93 3 -- 96 2
Redeemable preferred stock................. 461 44 1 504 --
---------- ------------- ----------- ----------- ------------
Total Fixed Maturities.................... 34,831 1,774 247 36,358 2
Equity securities............................ 157 -- -- 157 --
---------- ------------- ----------- ----------- ------------
Total at December 31, 2017................... $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2
========== ============= =========== =========== ============
|
/(1)/Corporate fixed maturities include both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
/(4)/Amounts represent OTTI losses in AOCI, which were not included in
income (loss) in accordance with current accounting guidance.
The contractual maturities of AFS fixed maturities at December 31, 2018 are
shown in the table below. Bonds not due at a single maturity date have been
included in the table in the final year of maturity. Actual maturities may
differ from contractual maturities because borrowers may have the right to
call or prepay obligations with or without call or prepayment penalties.
F-26
CONTRACTUAL MATURITIES OF AVAILABLE-FOR-SALE FIXED MATURITIES
AMORTIZED
COST FAIR VALUE
---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Due in one year or less................................ $ 2,085 $ 2,090
Due in years two through five.......................... 8,087 8,141
Due in years six through ten........................... 14,337 14,214
Due after ten years.................................... 16,750 16,239
---------- ----------
Subtotal............................................ 41,259 40,684
Residential mortgage-backed securities................. 193 202
Asset-backed securities................................ 600 590
Redeemable preferred stock............................. 440 439
---------- ----------
TOTAL AT DECEMBER 31, 2018............................. $ 42,492 $ 41,915
========== ==========
|
The following table shows proceeds from sales, gross gains (losses) from
sales and OTTI for AFS fixed maturities for the years ended December 31,
2018, 2017 and 2016:
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Proceeds from sales............................... $ 7,136 $ 7,232 $ 4,324
========= ========= =========
Gross gains on sales.............................. $ 145 $ 98 $ 111
========= ========= =========
Gross losses on sales............................. $ (103) $ (211) $ (58)
========= ========= =========
Total OTTI........................................ $ (37) $ (13) $ (65)
Non-credit losses recognized in OCI............... -- -- --
--------- --------- ---------
Credit losses recognized in net income (loss)..... $ (37) $ (13) $ (65)
========= ========= =========
|
The following table sets forth the amount of credit loss impairments on AFS
fixed maturities held by the Company at the dates indicated and the
corresponding changes in such amounts:
FIXED MATURITIES -- CREDIT LOSS IMPAIRMENTS
2018 2017
-------- --------
(IN MILLIONS)
Balances at January 1,................................. $ (10) $ (190)
Previously recognized impairments on securities that
matured, paid, prepaid or sold....................... 1 193
Recognized impairments on securities impaired to fair
value this period/(1)/............................... -- --
Impairments recognized this period on securities not
previously impaired.................................. (37) (13)
Additional impairments this period on securities
previously impaired.................................. -- --
Increases due to passage of time on previously
recorded credit losses............................... -- --
Accretion of previously recognized impairments due to
increases in expected cash flows..................... -- --
-------- --------
Balances at December 31,............................... $ (46) $ (10)
======== ========
|
/(1)/Represents circumstances where the Company determined in the current
period that it intends to sell the security or it is more likely than
not that it will be required to sell the security before recovery of the
security's amortized cost.
F-27
Net unrealized investment gains (losses) on fixed maturities classified as
AFS are included in the consolidated balance sheets as a component of AOCI.
The table below presents these amounts as of the dates indicated:
AS OF DECEMBER 31,
--------------------
2018 2017
-------- ----------
(IN MILLIONS)
AFS Securities:
Fixed maturities:
With OTTI loss.......................................... $ -- $ 1
All other............................................... (577) 1,526
-------- ----------
Net Unrealized Gains (Losses).............................. $ (577) $ 1,527
======== ==========
|
Changes in net unrealized investment gains (losses) recognized in AOCI
include reclassification adjustments to reflect amounts realized in Net
income (loss) for the current period that had been part of OCI in earlier
periods. The tables that follow below present a roll-forward of net
unrealized investment gains (losses) recognized in AOCI, split between
amounts related to fixed maturities on which an OTTI loss has been
recognized and all other:
NET UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES WITH OTTI LOSSES
AOCI GAIN
(LOSS)
NET UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
--------------- ------------ --------------- ------------ ----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1 $ 1 $ (1) $ (5) $ (4)
Net investment gains (losses) arising during
the period................................. (1) -- -- -- (1)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (1) -- -- (1)
Deferred income taxes..................... -- -- -- 5 5
Policyholders' liabilities................ -- -- 1 -- 1
--------------- ------------ --------------- ------------ ----------------
BALANCE, DECEMBER 31, 2018................... $ -- $ -- $ -- $ -- $ --
=============== ============ =============== ============ ================
Balance, January 1, 2017..................... $ 19 $ (1) $ (10) $ (3) $ 5
Net investment gains (losses) arising during
the period................................. (18) -- -- -- (18)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 2 -- -- 2
Deferred income taxes..................... -- -- -- (2) (2)
Policyholders' liabilities................ -- -- 9 -- 9
--------------- ------------ --------------- ------------ ----------------
Balance, December 31, 2017................... $ 1 $ 1 $ (1) $ (5) $ (4)
=============== ============ =============== ============ ================
|
/(1)/Represents "transfers in" related to the portion of OTTI losses
recognized during the period that were not recognized in income (loss)
for securities with no prior OTTI loss.
F-28
ALL OTHER NET UNREALIZED INVESTMENT GAINS (LOSSES) IN AOCI
NET AOCI GAIN (LOSS)
UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
------------- ----------- --------------- ------------- -----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1,526 $ (315) $ (232) $ (300) $ 679
Net investment gains (losses) arising during
the period................................. (2,098) -- -- -- (2,098)
Reclassification adjustment:
Included in Net income (loss)............. (5) -- -- -- (5)
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 354 -- -- 354
Deferred income taxes/(2)/................ -- -- -- 425 425
Policyholders' liabilities................ -- -- 177 -- 177
------------- ----------- --------------- ------------- -----------------
BALANCE, DECEMBER 31, 2018................... $ (577) $ 39 $ (55) $ 125 $ (468)
============= =========== =============== ============= =================
Balance, January 1, 2017..................... $ 428 $ (104) $ (188) $ (47) $ 89
Net investment gains (losses) arising during
the period................................. 1,085 -- -- -- 1,085
Reclassification adjustment:
Included in Net income (loss)............. 13 -- -- -- 13
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (211) -- -- (211)
Deferred income taxes..................... -- -- -- (253) (253)
Policyholders' liabilities................ -- -- (44) -- (44)
------------- ----------- --------------- ------------- -----------------
Balance, December 31, 2017................... $ 1,526 $ (315) $ (232) $ (300) $ 679
============= =========== =============== ============= =================
|
/(1)/Represents "transfers out" related to the portion of OTTI losses during
the period that were not recognized in income (loss) for securities with
no prior OTTI loss.
/(2)/Includes a $86 million income tax benefit from the impact of adoption of
ASU 2018-02.
F-29
The following tables disclose the fair values and gross unrealized losses of
the 1,471 issues at December 31, 2018 and the 620 issues at December 31,
2017 of fixed maturities that are not deemed to be other-than-temporarily
impaired, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position for
the specified periods at the dates indicated:
LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
--------------------- --------------------- ---------------------
GROSS GROSS GROSS
UNREALIZED UNREALIZED UNREALIZED
FAIR VALUE LOSSES FAIR VALUE LOSSES FAIR VALUE LOSSES
---------- ---------- ---------- ---------- ---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate.................................. $ 8,369 $ 306 $ 6,161 $ 393 $ 14,530 $ 699
U.S. Treasury, government and agency....... 2,636 68 3,154 386 5,790 454
States and political subdivisions.......... -- -- 19 1 19 1
Foreign governments........................ 109 3 76 10 185 13
Residential mortgage-backed................ -- -- 13 -- 13 --
Asset-backed............................... 558 11 6 -- 564 11
Redeemable preferred stock................. 160 12 31 5 191 17
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 11,832 $ 400 $ 9,460 $ 795 $ 21,292 $ 1,195
========== ========== ========== ========== ========== ==========
December 31, 2017:
------------------
Fixed Maturities:
Corporate.................................. $ 2,102 $ 17 $ 1,163 $ 39 $ 3,265 $ 56
U.S. Treasury, government and agency....... 2,150 6 3,005 179 5,155 185
States and political subdivisions.......... 20 -- -- -- 20 --
Foreign governments........................ 11 -- 73 5 84 5
Residential mortgage-backed................ 18 -- -- -- 18 --
Asset-backed............................... 7 -- 2 -- 9 --
Redeemable preferred stock................. 7 -- 12 1 19 1
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247
========== ========== ========== ========== ========== ==========
|
The Company's investments in fixed maturities do not include concentrations
of credit risk of any single issuer greater than 10% of the consolidated
equity of the Company, other than securities of the U.S. government, U.S.
government agencies, and certain securities guaranteed by the U.S.
government. The Company maintains a diversified portfolio of corporate
securities across industries and issuers and does not have exposure to any
single issuer in excess of 0.8% of total investments. The largest exposures
to a single issuer of corporate securities held at December 31, 2018 and
2017 were $210 million and $182 million, respectively.
Corporate high yield securities, consisting primarily of public high yield
bonds, are classified as other than investment grade by the various rating
agencies, i.e., a rating below Baa3/BBB- or the National Association of
Insurance Commissioners ("NAIC") designation of 3 (medium investment grade),
4 or 5 (below investment grade) or 6 (in or near default). At December 31,
2018 and 2017, respectively, approximately $1,228 million and
$1,309 million, or 2.9% and 3.8%, of the $42,492 million and $34,831 million
aggregate amortized cost of fixed maturities held by the Company were
considered to be other than investment grade. These securities had net
unrealized (losses) and gains of $(30) million and $5 million at
December 31, 2018 and 2017, respectively.
F-30
At December 31, 2018 and 2017, respectively, the $795 million and
$224 million of gross unrealized losses of twelve months or more were
concentrated in corporate and U.S. Treasury, government and agency
securities. In accordance with the policy described in Note 2, the Company
concluded that an adjustment to income for OTTI for these securities was not
warranted at either December 31, 2018 or 2017. At December 31, 2018, the
Company did not intend to sell the securities nor will it likely be required
to dispose of the securities before the anticipated recovery of their
remaining amortized cost basis.
The Company does not originate, purchase or warehouse residential mortgages
and is not in the mortgage servicing business.
At December 31, 2018, the carrying value of fixed maturities that were
non-income producing for the twelve months preceding that date was
$1 million.
At December 31, 2018 and 2017, respectively, the fair value of the Company's
trading account securities was $15,166 million and $12,277 million. Also at
December 31, 2018 and 2017, respectively, trading account securities
included the General Account's investment in Separate Accounts, which had
carrying values of $48 million and $49 million.
Mortgage Loans
The payment terms of mortgage loans may from time to time be restructured or
modified.
At December 31, 2018 and 2017, the carrying values of problem commercial
mortgage loans on real estate that had been classified as non-accrual loans
were $19 million and $19 million, respectively.
VALUATION ALLOWANCES FOR MORTGAGE LOANS:
The change in the valuation allowance for credit losses for commercial
mortgage loans during the years ended December 31, 2018, 2017 and 2016 was
as follows:
COMMERCIAL MORTGAGE LOANS
------------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance, January 1,................ $ 8 $ 8 $ 6
Charge-offs............................... -- -- --
Recoveries................................ (1) -- (2)
Provision................................. -- -- 4
----------- ----------- -----------
Ending Balance, December 31,................. $ 7 $ 8 $ 8
=========== =========== ===========
Ending Balance, December 31,.................
Individually Evaluated for Impairment..... $ 7 $ 8 $ 8
=========== =========== ===========
|
There were no allowances for credit losses for agricultural mortgage loans
in 2018, 2017 and 2016.
The following tables provide information relating to the loan-to-value and
debt service coverage ratios for commercial and agricultural mortgage loans
at December 31, 2018 and 2017. The values used in these ratio calculations
were developed as part of the periodic review of the commercial and
agricultural mortgage loan portfolio, which includes an evaluation of the
underlying collateral value.
F-31
MORTGAGE LOANS BY LOAN-TO-VALUE AND DEBT SERVICE COVERAGE RATIOS
DEBT SERVICE COVERAGE RATIO/(1)/
-------------------------------------------------
LESS TOTAL
GREATER 1.8X TO 1.5X TO 1.2X TO 1.0X TO THAN MORTGAGE
THAN 2.0X 2.0X 1.8X 1.5X 1.2X 1.0X LOANS
LOAN-TO-VALUE RATIO:/(2)/ --------- ------- -------- ------- ------- ------ --------
(IN MILLIONS)
DECEMBER 31, 2018:
COMMERCIAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 780 $ 21 $ 247 $ 24 $ -- $ -- $ 1,072
50% - 70%.................................. 4,908 656 1,146 325 151 -- 7,186
70% - 90%.................................. 260 -- 117 370 98 -- 845
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 5,948 $ 677 $ 1,510 $ 746 $ 249 $ -- $ 9,130
========= ======= ======== ====== ======= ====== ========
AGRICULTURAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611
50% - 70%.................................. 112 46 246 379 224 31 1,038
70% - 90%.................................. -- -- -- 19 27 -- 46
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695
========= ======= ======== ====== ======= ====== ========
TOTAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 1,062 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,683
50% - 70%.................................. 5,020 702 1,392 704 375 31 8,224
70% - 90%.................................. 260 -- 117 389 125 -- 891
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Mortgage Loans......................... $ 6,342 $ 870 $ 2,023 $1,687 $ 821 $ 82 $ 11,825
========= ======= ======== ====== ======= ====== ========
December 31, 2017:
Commercial Mortgage Loans/(1)/
0% - 50%................................... $ 742 $ -- $ 320 $ 74 $ -- $ -- $ 1,136
50% - 70%.................................. 4,088 682 1,066 428 145 -- 6,409
70% - 90%.................................. 169 110 196 272 50 -- 797
90% plus................................... -- -- 27 -- -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ -- $ 8,369
========= ======= ======== ====== ======= ====== ========
Agricultural Mortgage Loans/(1)/
0% - 50%................................... $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557
50% - 70%.................................. 111 46 227 359 221 49 1,013
70% - 90%.................................. -- -- -- 4 -- -- 4
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574
========= ======= ======== ====== ======= ====== ========
|
F-32
Debt Service Coverage Ratio/(1)/
-------------------------------------------------
Less Total
Greater 1.8x to 1.5x to 1.2x to 1.0x to than Mortgage
than 2.0x 2.0x 1.8x 1.5x 1.2x 1.0x Loans
Loan-to-Value Ratio:/(2)/ --------- ------- -------- -------- ------- ----- ---------
(in millions)
Total Mortgage Loans/(1)/
0% - 50%................................... $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693
50% - 70%.................................. 4,199 728 1,293 787 366 49 7,422
70% - 90%.................................. 169 110 196 276 50 -- 801
90% plus................................... -- -- 27 -- -- -- 27
-------- ------ -------- -------- ------ ----- ---------
Total Mortgage Loans......................... $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943
======== ====== ======== ======== ====== ===== =========
|
/(1)/The debt service coverage ratio is calculated using the most recently
reported operating income results from property operations divided by
annual debt service.
/(2)/The loan-to-value ratio is derived from current loan balance divided by
the fair market value of the property. The fair market value of the
underlying commercial properties is updated annually.
The following table provides information relating to the aging analysis of
past due mortgage loans at December 31, 2018 and 2017, respectively:
AGE ANALYSIS OF PAST DUE MORTGAGE LOANS
RECORDED
INVESTMENT
90 DAYS OR
90 TOTAL MORE
30-59 60-89 DAYS FINANCING AND
DAYS DAYS OR MORE TOTAL CURRENT RECEIVABLES ACCRUING
------- ------ ------- -------- ---------- ----------- -----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Commercial................................. $ -- $ -- $ 27 $ 27 $ 9,103 $ 9,130 $ --
Agricultural............................... 18 8 42 68 2,627 2,695 40
------- ------ ------- -------- ---------- ----------- -----------
TOTAL MORTGAGE LOANS......................... $ 18 $ 8 $ 69 $ 95 $ 11,730 $ 11,825 $ 40
======= ====== ======= ======== ========== =========== ===========
December 31, 2017:
------------------
Commercial................................. $ 27 $ -- $ -- $ 27 $ 8,342 $ 8,369 $ --
Agricultural............................... 49 3 22 74 2,500 2,574 22
------- ------ ------- -------- ---------- ----------- -----------
Total Mortgage Loans......................... $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22
======= ====== ======= ======== ========== =========== ===========
|
The following table provides information relating to impaired mortgage loans
at December 31, 2018 and 2017, respectively:
IMPAIRED MORTGAGE LOANS
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- --------- --------- -------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ 2 2 -- -- --
--------- --------- --------- -------------- ---------
TOTAL........................................ $ 2 $ 2 $ -- $ -- $ --
========= ========= ========= ============== =========
|
F-33
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- ---------- ---------- -------------- ----------
(IN MILLIONS)
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (7) $ 27 $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
TOTAL........................................ $ 27 $ 31 $ (7) $ 27 $ --
========== ========== ========== ============== ==========
December 31, 2017:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ -- $ -- $ -- $ -- $ --
========== ========== ========== ============== ==========
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (8) $ 27 $ 2
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ 27 $ 31 $ (8) $ 27 $ 2
========== ========== ========== ============== ==========
|
/(1)/Represents a five-quarter average of recorded amortized cost.
Derivatives and Offsetting Assets and Liabilities
The Company uses derivatives as part of its overall asset/liability risk
management primarily to reduce exposures to equity market and interest rate
risks. Derivative hedging strategies are designed to reduce these risks from
an economic perspective and are all executed within the framework of a
"Derivative Use Plan" approved by applicable states' insurance law.
Derivatives are generally not accounted for using hedge accounting, with the
exception of Treasury Inflation-Protected Securities ("TIPS"), which is
discussed further below. Operation of these hedging programs is based on
models involving numerous estimates and assumptions, including, among
others, mortality, lapse, surrender and withdrawal rates, election rates,
fund performance, market volatility and interest rates. A wide range of
derivative contracts are used in these hedging programs, including exchange
traded equity, currency and interest rate futures contracts, total return
and/or other equity swaps, interest rate swap and floor contracts, bond and
bond-index total return swaps, swaptions, variance swaps and equity options,
credit and foreign exchange derivatives, as well as bond and repo
transactions to support the hedging. The derivative contracts are
collectively managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in capital markets. In addition, as part of its hedging strategy,
the Company targets an asset level for all variable annuity products at or
above a CTE98 level under most economic scenarios (CTE is a statistical
measure of tail risk which quantifies the total asset requirement to sustain
a loss if an event outside a given probability level has occurred. CTE98
denotes the financial resources a company would need to cover the average of
the worst 2% of scenarios.)
DERIVATIVES UTILIZED TO HEDGE EXPOSURE TO VARIABLE ANNUITIES WITH GUARANTEE
FEATURES
The Company has issued and continues to offer variable annuity products with
GMxB features. The risk associated with the GMDB feature is that
under-performance of the financial markets could result in GMDB benefits, in
the event of death, being higher than what accumulated policyholders'
account balances would support. The risk associated with the GMIB feature is
that under-performance of the financial markets could result in the present
value of GMIB, in the event of annuitization, being higher than what
accumulated policyholders' account balances would support, taking into
account the relationship between current annuity purchase rates and the GMIB
guaranteed annuity purchase rates. The risk associated with products that
have a GMxB derivative features liability is that under-performance of the
financial markets could result in the GMxB derivative features' benefits
being higher than what accumulated policyholders' account balances would
support.
For GMxB features, the Company retains certain risks including basis, credit
spread and some volatility risk and risk associated with actual versus
expected actuarial assumptions for mortality, lapse and surrender,
withdrawal and policyholder election rates, among other things. The
derivative contracts are managed to correlate with changes in the value of
the GMxB features that result from financial markets movements. A portion of
exposure to realized equity volatility is hedged using equity options and
variance swaps and a portion of exposure to credit risk is hedged using
total return swaps on fixed income indices. Additionally, the Company is
party to total return swaps for which the reference U.S. Treasury securities
are contemporaneously purchased from the market and sold to the swap
counterparty. As these transactions result in a transfer of control of the
U.S. Treasury securities to the swap counterparty, the Company derecognizes
these securities with consequent gain or loss from the sale. The Company has
also purchased reinsurance contracts to mitigate the risks associated with
GMDB features and the impact of potential market fluctuations on future
policyholder elections of GMIB features contained in certain annuity
contracts issued by the Company.
F-34
DERIVATIVES UTILIZED TO HEDGE CREDITING RATE EXPOSURE ON SCS, SIO, MSO AND
IUL PRODUCTS/INVESTMENT OPTIONS
The Company hedges crediting rates in the Structured Capital Strategies
("SCS") variable annuity, Structured Investment Option in the EQUI-VEST
variable annuity series ("SIO"), Market Stabilizer Option ("MSO") in the
variable life insurance products and Indexed Universal Life ("IUL")
insurance products. These products permit the contract owner to participate
in the performance of an index, ETF or commodity price movement up to a cap
for a set period of time. They also contain a protection feature, in which
the Company will absorb, up to a certain percentage, the loss of value in an
index, ETF or commodity price, which varies by product segment.
In order to support the returns associated with these features, the Company
enters into derivative contracts whose payouts, in combination with fixed
income investments, emulate those of the index, ETF or commodity price,
subject to caps and buffers without any basis risk due to market exposures,
thereby substantially reducing any exposure to market-related earnings
volatility.
DERIVATIVES USED FOR GENERAL ACCOUNT INVESTMENT PORTFOLIO
The Company maintains a strategy in its General Account investment portfolio
to replicate the credit exposure of fixed maturity securities otherwise
permissible for investment under its investment guidelines through the sale
of credit default swaps ("CDSs"). Under the terms of these swaps, the
Company receives quarterly fixed premiums that, together with any initial
amount paid or received at trade inception, replicate the credit spread
otherwise currently obtainable by purchasing the referenced entity's bonds
of similar maturity. These credit derivatives generally have remaining terms
of five years or less and are recorded at fair value with changes in fair
value, including the yield component that emerges from initial amounts paid
or received, reported in Net investment income (loss). The Company manages
its credit exposure taking into consideration both cash and derivatives
based positions and selects the reference entities in its replicated credit
exposures in a manner consistent with its selection of fixed maturities. In
addition, the Company generally transacts the sale of CDSs in single name
reference entities of investment grade credit quality and with
counterparties subject to collateral posting requirements. If there is an
event of default by the reference entity or other such credit event as
defined under the terms of the swap contract, the Company is obligated to
perform under the credit derivative and, at the counterparty's option,
either pay the referenced amount of the contract less an auction-determined
recovery amount or pay the referenced amount of the contract and receive in
return the defaulted or similar security of the reference entity for
recovery by sale at the contract settlement auction. To date, there have
been no events of default or circumstances indicative of a deterioration in
the credit quality of the named referenced entities to require or suggest
that the Company will have to perform under these CDSs. The maximum
potential amount of future payments the Company could be required to make
under these credit derivatives is limited to the par value of the referenced
securities which is the dollar or euro-equivalent of the derivative notional
amount. The Standard North American CDS Contract ("SNAC") or Standard
European Corporate Contract ("STEC") under which the Company executes these
CDS sales transactions does not contain recourse provisions for recovery of
amounts paid under the credit derivative.
The Company purchased 30-year TIPS and other sovereign bonds, both inflation
linked and non-inflation linked, as General Account investments and enters
into asset or cross-currency basis swaps, to result in payment of the given
bond's coupons and principal at maturity in the bond's specified currency to
the swap counterparty in return for fixed dollar amounts. These swaps, when
considered in combination with the bonds, together result in a net position
that is intended to replicate a dollar-denominated fixed-coupon cash bond
with a yield higher than a term-equivalent U.S. Treasury bond.
The Company implemented a strategy to hedge a portion of the credit exposure
in its General Account investment portfolio by buying protection through a
swap. These are swaps on the "super senior tranche" of the investment grade
CDX index. Under the terms of these swaps, the Company pays quarterly fixed
premiums that, together with any initial amount paid or received at trade
inception, serve as premiums paid to hedge the risk arising from multiple
defaults of bonds referenced in the CDX index. These credit derivatives have
terms of five years or less and are recorded at fair value with changes in
fair value, including the yield component that emerges from initial amounts
paid or received, reported in Net derivative gains (losses).
In 2016, the Company implemented a program to mitigate its duration gap
using total return swaps for which the reference U.S. Treasury securities
are sold to the swap counterparty under arrangements economically similar to
repurchase agreements. As these transactions result in a transfer of control
of the U.S. Treasury securities to the swap counterparty, the Company
derecognizes these securities with consequent gain or loss from the sale.
Under this program, the Company derecognized approximately $3,905 million of
U.S. Treasury securities for which the Company received proceeds of
approximately $3,905 million at inception of the total return swap contract.
Under the terms of these swaps, the Company retains ongoing exposure to the
total returns of the underlying U.S. Treasury securities in exchange for a
financing cost. At December 31, 2018, the aggregate fair value of U.S.
Treasury securities derecognized under this program was approximately
$3,690 million. Reported in Other invested assets in the Company's balance
sheet at December 31, 2018 is approximately $24 million, representing the
fair value of the total return swap contracts.
F-35
DERIVATIVES USED TO HEDGE CURRENCY FLUCTUATIONS ON AFFILIATED LOANS
The Company uses foreign exchange derivatives to reduce exposure to currency
fluctuations that may arise from non-U.S.-dollar denominated financial
instruments. The Company had a currency swap contract with AXA to hedge
foreign exchange exposure from affiliated loans, which matured in March 2018.
The tables below present quantitative disclosures about the Company's
derivative instruments, including those embedded in other contracts required
to be accounted for as derivative instruments:
DERIVATIVE INSTRUMENTS BY CATEGORY
AT DECEMBER 31, 2018
FAIR VALUE
------------------------
GAINS (LOSSES)
NOTIONAL ASSET LIABILITY REPORTED IN
AMOUNT DERIVATIVES DERIVATIVES EARNINGS (LOSS)
--------- ------------ ----------- ---------------
(IN MILLIONS)
FREESTANDING DERIVATIVES/(1)(4)/:
Equity contracts:
Futures.................................. $ 10,411 $ -- $ -- $ 550
Swaps.................................... 7,697 140 168 675
Options.................................. 21,698 2,119 1,163 (899)
Interest rate contracts:
Swaps.................................... 27,003 632 194 (456)
Futures.................................. 11,448 -- -- 118
Credit contracts:
Credit default swaps..................... 1,282 17 -- (3)
Other freestanding contracts:
Foreign currency contracts............... 2,097 27 14 6
Margin................................... -- 7 5 --
Collateral............................... -- 3 1,564 --
EMBEDDED DERIVATIVES:
GMIB reinsurance contracts/(4)/.......... -- 1,991 -- (1,068)
GMxB derivative features
liability/(2)(4)/....................... -- -- 5,431 (786)
SCS, SIO, MSO and IUL indexed
features/(3)(4)/........................ -- -- 687 853
--------- ------------ ----------- ---------------
Balances, December 31, 2018............. $ 81,636 $ 4,936 $ 9,226 $ (1,010)
========= ============ =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and IUL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Derivative Instruments by Category
At December 31, 2017
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
-------- ----------- ----------- ---------------
(in millions)
Freestanding Derivatives/(1)(4)/:
Equity contracts:
Futures.................................... $ 2,950 $ -- $ -- $ (655)
Swaps...................................... 4,587 3 125 (842)
Options.................................... 20,630 3,334 1,426 1,203
|
F-36
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
--------- ----------- ----------- ---------------
(in millions)
Interest rate contracts:
Swaps........................................... $ 18,988 $ 319 $ 190 $ 655
Futures......................................... 11,032 -- -- 125
Credit contracts:
Credit default swaps............................ 2,057 34 2 21
Other freestanding contracts:
Foreign currency contracts...................... 1,297 11 2 (38)
Margin.......................................... -- 18 -- --
Collateral...................................... -- 3 1,855 --
Embedded Derivatives:
GMIB reinsurance contracts/(4)/................. -- 10,488 -- 69
GMxB derivative features liability/(2)(4)/...... -- -- 4,256 1,592
SCS, SIO, MSO and IUL indexed features/(3)(4)/.. -- -- 1,698 (1,236)
--------- ----------- ----------- ---------------
Balances, December 31, 2017.................... $ 61,541 $ 14,210 $ 9,554 $ 894
========= =========== =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and UIL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Equity-Based and Treasury Futures Contracts Margin
All outstanding equity-based and treasury futures contracts at December 31,
2018 are exchange-traded and net settled daily in cash. At December 31,
2018, the Company had open exchange-traded futures positions on: (i) the S&P
500, Russell 2000 and Emerging Market indices, having initial margin
requirements of $245 million, (ii) the 2-year, 5-year and 10-year U.S.
Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial
margin requirements of $70 million and (iii) the Euro Stoxx, FTSE 100,
Topix, ASX 200 and European, Australasia, and Far East ("EAFE") indices as
well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S.
dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial
margin requirements of $25 million.
Collateral Arrangements
The Company generally has executed a Credit Support Annex ("CSA") under the
International Swaps and Derivatives Association Master Agreement ("ISDA
Master Agreement") it maintains with each of its over-the-counter ("OTC")
derivative counterparties that requires both posting and accepting
collateral either in the form of cash or high-quality securities, such as
U.S. Treasury securities, U.S. government and government agency securities
and investment grade corporate bonds. The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related CSA have been executed. At December 31, 2018
and 2017, respectively, the Company held $1,564 million and $1,855 million
in cash and securities collateral delivered by trade counterparties,
representing the fair value of the related derivative agreements. The
unrestricted cash collateral is reported in Other invested assets. The
Company posted collateral of $3 million and $3 million at December 31, 2018
and 2017, respectively, in the normal operation of its collateral
arrangements.
Securities Repurchase and Reverse Repurchase Transactions
Securities repurchase and reverse repurchase transactions are conducted by
the Company under a standardized securities industry master agreement,
amended to suit the requirements of each respective counterparty. The
Company's securities repurchase and reverse repurchase agreements are
accounted for as secured borrowing or lending arrangements, respectively and
are reported in the consolidated balance sheets on a gross basis. At
December 31, 2018 and 2017, the balance outstanding under securities
repurchase transactions was $573 million and $1,887 million, respectively.
The Company utilized these repurchase and reverse repurchase agreements for
asset liability and cash management purposes. For other instruments used for
asset liability management purposes, see "Obligations under Funding
Agreements" in Note 17 -- Commitments and Contingent Liabilities.
F-37
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2018:
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2018
GROSS
GROSS AMOUNT NET AMOUNT
AMOUNT OFFSET IN THE PRESENTED IN THE
RECOGNIZED BALANCE SHEETS BALANCE SHEETS
----------- -------------- ----------------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 2,946 $ 2,912 $ 34
Other financial instruments................ 1,520 -- 1,520
----------- ------------- ----------------
Other invested assets..................... $ 4,466 $ 2,912 $ 1,554
=========== ============= ================
LIABILITIES
Total Derivatives.......................... $ 3,109 $ 2,912 $ 197
Other financial liabilities................ 1,263 -- 1,263
----------- ------------- ----------------
Other liabilities......................... $ 4,372 $ 2,912 $ 1,460
=========== ============= ================
Securities sold under agreement to
repurchase/(1)/........................... $ 571 $ -- $ 571
=========== ============= ================
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2018.
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2018
NET AMOUNT COLLATERAL (RECEIVED)/HELD
PRESENTED IN ------------------------
THE BALANCE FINANCIAL NET
SHEETS INSTRUMENTS CASH/(3)/ AMOUNT
------------ ----------- ----------- ---------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 1,397 $ -- $ (1,363) $ 34
Other financial instruments................ 1,520 -- -- 1,520
------------ ----------- ----------- ---------
Other invested assets..................... $ 2,917 $ -- $ (1,363) $ 1,554
============ =========== =========== =========
LIABILITIES
Total Derivatives.......................... $ 197 $ -- $ -- $ 197
Other financial liabilities................ 1,263 -- -- 1,263
------------ ----------- ----------- ---------
Other liabilities......................... $ 1,460 $ -- $ -- $ 1,460
============ =========== =========== =========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 571 $ (588) $ -- $ (17)
============ =========== =========== =========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
/(2)/US Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is in Cash and cash equivalents on consolidated balance sheets.
F-38
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2018:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
DECEMBER 31, 2018
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
----------------------------------------------------------
OVERNIGHT AND UP TO 30 30-90 GREATER THAN
CONTINUOUS DAYS DAYS 90 DAYS TOTAL
-------------- --------- ------- ------------- -----------
(IN MILLIONS)
Securities sold under agreement
to repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 571 $ -- $ -- $ 571
-------------- --------- ------- ------------- -----------
Total........................................ $ -- $ 571 $ -- $ -- $ 571
============== ========= ======= ============= ===========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2017.
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2017
Gross
Gross Amount Net Amount
Amount Offset in the Presented in the
Recognized Balance Sheets Balance Sheets
------------ --------------- ----------------
(in millions)
Assets
Total Derivatives.......................... $ 3,740 $ 3,614 $ 126
Other financial instruments................ 1,704 -- 1,704
------------ --------------- ----------------
Other invested assets..................... $ 5,444 $ 3,614 $ 1,830
============ =============== ================
Liabilities
Total Derivatives.......................... $ 3,614 $ 3,614 $ --
Other financial liabilities................ 1,242 -- 1,242
------------ --------------- ----------------
Other liabilities......................... $ 4,856 $ 3,614 $ 1,242
============ =============== ================
Securities sold under agreement to
repurchase/(1)/........................... $ 1,882 $ -- $ 1,882
============ =============== ================
|
/(1)/Excludes expense of $5 million included in Securities sold under
agreements to repurchase on the consolidated balance sheets.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2017:
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2017
Net Amount Collateral (Received)/Held
Presented in ------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------ ----------- -----------
(in millions)
Assets
Total derivatives.......................... $ 1,954 $ -- $ (1,828) $ 126
Other financial instruments................ 1,704 -- -- 1,704
------------- ------------ ----------- -----------
Other invested assets..................... $ 3,658 $ -- $ (1,828) $ 1,830
============= ============ =========== ===========
|
F-39
Net Amount Collateral (Received)/Held
Presented in ---------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------- ------------ --------
(in millions)
Liabilities
Other financial liabilities................ $ 1,242 $ -- $ -- $ 1,242
------------- ------------- ------------ --------
Other liabilities......................... $ 1,242 $ -- $ -- $ 1,242
============= ============= ============ ========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 1,882 $ (1,988) $ (21) $ (127)
============= ============= ============ ========
|
/(1)/Excludes expense of $5 million in securities sold under agreement to
repurchase.
/(2)/U.S. Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is included in Cash and cash equivalents on consolidated balance
sheets.
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2017:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
AT DECEMBER 31, 2017
Remaining Contractual Maturity of the Agreements
----------------------------------------------------------
Overnight and Up to 30 30-90 Greater Than
Continuous days days 90 days Total
--------------- -------- --------- -------------- --------
(in millions)
Securities sold under agreement to
repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 1,882 $ -- $ -- $ 1,882
--------------- -------- --------- -------------- --------
Total........................................ $ -- $ 1,882 $ -- $ -- $ 1,882
=============== ======== ========= ============== ========
|
/(1)/Excludes expense of $5 million in securities sold under agreements to
repurchase on the consolidated balance sheets.
Net Investment Income (Loss)
The following table breaks out Net investment income (loss) by asset
category:
YEARS ENDED DECEMBER 31
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Fixed maturities....................................... $ 1,540 $ 1,365 $ 1,418
Mortgage loans on real estate.......................... 494 453 461
Real estate held for the production of income.......... (6) 2 --
Repurchase agreement................................... -- -- 1
Other equity investments............................... 123 169 55
Policy loans........................................... 201 205 210
Trading securities..................................... 128 258 64
Other investment income................................ 69 54 16
-------- -------- --------
Gross investment income (loss)....................... 2,549 2,506 2,225
Investment expenses/(1)/............................... (71) (65) (57)
-------- -------- --------
Net Investment Income (Loss)......................... $ 2,478 $ 2,441 $ 2,168
======== ======== ========
|
/(1)/Investment expenses includes expenses related to the management of the
two buildings sold in 2016.
F-40
Net unrealized and realized gains (losses) on trading account equity
securities are included in Net investment income (loss) in the consolidated
statements of income (loss). The table below shows a breakdown of Net
investment income from trading account securities during the years ended
December 31, 2018, 2017 and 2016:
NET INVESTMENT INCOME (LOSS) FROM TRADING SECURITIES
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------- ------ ------
(IN MILLIONS)
Net investment gains (losses) recognized during the
period on securities held at the end of the period.. $ (174) $ 63 $ (45)
Net investment gains (losses) recognized on
securities sold during the period................... (24) (19) (11)
------- ------ ------
Unrealized and realized gains (losses) on trading
securities.......................................... (198) 44 (56)
Interest and dividend income from trading securities.. 326 214 120
------- ------ ------
Net investment income (loss) from trading securities.. $ 128 $ 258 $ 64
======= ====== ======
|
Investment Gains (Losses), Net
Investment gains (losses), net including changes in the valuation allowances
and OTTI are as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
------- --------- --------
(IN MILLIONS)
Fixed maturities............................. $ 6 $ (130) $ (3)
Mortgage loans on real estate................ -- 2 (2)
Other equity investments..................... -- 3 --
Other........................................ (2) -- 23
------- --------- --------
Investment gains (losses), net............... $ 4 $ (125) $ 18
======= ========= ========
|
For the years ended December 31, 2018, 2017 and 2016, respectively,
investment results passed through to certain participating group annuity
contracts as Interest credited to policyholders' account balances totaled
$3 million, $3 million and $4 million.
4) INTANGIBLE ASSETS
Capitalized Software
Capitalized software, net of accumulated amortization, amounted to
$115 million and $96 million at December 31, 2018 and 2017, respectively,
and is recorded in Other assets. Amortization of capitalized software in
2018, 2017 and 2016 was $35 million, $37 million and $42 million,
respectively, recorded in other Operating costs and expenses in the
consolidated statements of income (loss). Amortization expense for
capitalized software is expected to be approximately $43 million in 2019,
$47 million in 2020, $47 million in 2021, $47 million in 2022 and
$47 million in 2023.
5) CLOSED BLOCK
As a result of demutualization, the Company's Closed Block was established
in 1992 for the benefit of certain individual participating policies that
were in force on that date. Assets, liabilities and earnings of the Closed
Block are specifically identified to support its participating policyholders.
Assets allocated to the Closed Block inure solely to the benefit of the
Closed Block policyholders and will not revert to the benefit of the
Company. No reallocation, transfer, borrowing or lending of assets can be
made between the Closed Block and other portions of the Company's General
Account, any of its Separate Accounts or any affiliate of the Company
without the approval of the New York State Department of Financial Services
(the "NYDFS"). Closed Block assets and liabilities are carried on the same
basis as similar assets and liabilities held in the General Account.
F-41
The excess of Closed Block liabilities over Closed Block assets (adjusted to
exclude the impact of related amounts in AOCI) represents the expected
maximum future post-tax earnings from the Closed Block that would be
recognized in income from continuing operations over the period the policies
and contracts in the Closed Block remain in force. As of January 1, 2001,
the Company has developed an actuarial calculation of the expected timing of
the Closed Block's earnings.
If the actual cumulative earnings from the Closed Block are greater than the
expected cumulative earnings, only the expected earnings will be recognized
in net income. Actual cumulative earnings in excess of expected cumulative
earnings at any point in time are recorded as a policyholder dividend
obligation because they will ultimately be paid to Closed Block
policyholders as an additional policyholder dividend unless offset by future
performance that is less favorable than originally expected. If a
policyholder dividend obligation has been previously established and the
actual Closed Block earnings in a subsequent period are less than the
expected earnings for that period, the policyholder dividend obligation
would be reduced (but not below zero). If, over the period the policies and
contracts in the Closed Block remain in force, the actual cumulative
earnings of the Closed Block are less than the expected cumulative earnings,
only actual earnings would be recognized in income from continuing
operations. If the Closed Block has insufficient funds to make guaranteed
policy benefit payments, such payments will be made from assets outside the
Closed Block.
Many expenses related to Closed Block operations, including amortization of
DAC, are charged to operations outside of the Closed Block; accordingly, net
revenues of the Closed Block do not represent the actual profitability of
the Closed Block operations. Operating costs and expenses outside of the
Closed Block are, therefore, disproportionate to the business outside of the
Closed Block.
Summarized financial information for the Company's Closed Block is as
follows:
AS OF DECEMBER 31,
---------------------
2018 2017
---------- ----------
(IN MILLIONS)
CLOSED BLOCK LIABILITIES:
Future policy benefits, policyholders' account
balances and other................................... $ 6,709 $ 6,958
Policyholder' dividend obligation...................... -- 19
Other liabilities...................................... 47 271
---------- ----------
Total Closed Block liabilities......................... 6,756 7,248
---------- ----------
ASSETS DESIGNATED TO THE CLOSED BLOCK:
Fixed maturities, available for sale, at fair value
(amortized cost of $ 3,680 and $3,923)............... 3,672 4,070
Mortgage loans on real estate, net of valuation
allowance of $-- and $--............................. 1,824 1,720
Policy loans........................................... 736 781
Cash and other invested assets......................... 76 351
Other assets........................................... 179 182
---------- ----------
Total assets designated to the Closed Block............ 6,487 7,104
---------- ----------
Excess of Closed Block liabilities over assets
designated to the Closed Block....................... 269 144
Amounts included in Accumulated other comprehensive
income (loss):
Net unrealized investment gains (losses), net of
policyholders' dividend obligation of $-- and $19... 8 138
---------- ----------
Maximum future income to be recognized from closed
block assets and liabilities........................ $ 277 $ 282
========== ==========
|
The Company's Closed Block revenues and expenses follow:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
REVENUES:
Premiums and other income.................... $ 194 $ 224 $ 212
Net investment income (loss)................. 291 314 349
Investment gains (losses), net............... (3) (20) (1)
-------- -------- --------
Total revenues............................. 482 518 560
-------- -------- --------
|
F-42
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits and dividends....... $ 471 $ 537 $ 522
Other operating costs and expenses.......... 3 2 4
---------- ---------- ----------
Total benefits and other deductions....... 474 539 526
---------- ---------- ----------
Net income, before income taxes............. 8 (21) 34
Income tax (expense) benefit.............. (3) (36) (12)
---------- ---------- ----------
Net income (losses)......................... $ 5 $ (57) $ 22
========== ========== ==========
|
A reconciliation of the Company's policyholders' dividend obligation follows:
DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
Balance, beginning of year.................................. $ 19 $ 52
Unrealized investment gains (losses)........................ (19) (33)
-------- --------
Balance, end of year........................................ $ -- $ 19
======== ========
|
6) DAC AND POLICYHOLDER BONUS INTEREST CREDITS
Changes in the deferred policy acquisition cost asset for the years ended
December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
-------------------------
2018 2017 2016
------- ------- -------
(IN MILLIONS)
Balance, beginning of year................... $ 4,492 $ 5,025 $ 5,079
Capitalization of commissions, sales and
issue expenses............................. 597 578 594
Amortization:
Impact of assumptions updates and
model changes............................. 165 (247) (193)
All other.................................... (596) (653) (449)
------- ------- -------
Total amortization......................... (431) (900) (642)
------- ------- -------
Change in unrealized investment gains
and losses................................. 353 (211) (6)
------- ------- -------
Balance, end of year......................... $ 5,011 $ 4,492 $ 5,025
======= ======= =======
|
Changes in the deferred asset for policyholder bonus interest credits for
the years ended December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Balance, beginning of year................... $ 473 $ 504 $ 534
Policyholder bonus interest credits deferred. 4 6 13
Amortization charged to income............... (51) (37) (43)
-------- -------- --------
Balance, end of year......................... $ 426 $ 473 $ 504
======== ======== ========
|
F-43
7) FAIR VALUE DISCLOSURES
The accounting guidance establishes a fair value hierarchy that requires an
entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value, and identifies three levels
of inputs that may be used to measure fair value:
Level 1 Unadjusted quoted prices for identical instruments in
active markets. Level 1 fair values generally are supported
by market transactions that occur with sufficient frequency
and volume to provide pricing information on an ongoing
basis.
Level 2 Observable inputs other than Level 1 prices, such as quoted
prices for similar instruments, quoted prices in markets
that are not active, and inputs to model-derived valuations
that are directly observable or can be corroborated by
observable market data.
Level 3 Unobservable inputs supported by little or no market
activity and often requiring significant management
judgment or estimation, such as an entity's own assumptions
about the cash flows or other significant components of
value that market participants would use in pricing the
asset or liability.
|
The Company uses unadjusted quoted market prices to measure fair value for
those instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are measured using
present value or other valuation techniques. The fair value determinations
are made at a specific point in time, based on available market information
and judgments about the financial instrument, including estimates of the
timing and amount of expected future cash flows and the credit standing of
counterparties. Such adjustments do not reflect any premium or discount that
could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument, nor do they consider the tax
impact of the realization of unrealized gains or losses. In many cases, the
fair value cannot be substantiated by direct comparison to independent
markets, nor can the disclosed value be realized in immediate settlement of
the instrument.
Management is responsible for the determination of the value of investments
carried at fair value and the supporting methodologies and assumptions.
Under the terms of various service agreements, the Company often utilizes
independent valuation service providers to gather, analyze, and interpret
market information and derive fair values based upon relevant methodologies
and assumptions for individual securities. These independent valuation
service providers typically obtain data about market transactions and other
key valuation model inputs from multiple sources and, through the use of
widely accepted valuation models, provide a single fair value measurement
for individual securities for which a fair value has been requested. As
further described below with respect to specific asset classes, these inputs
include, but are not limited to, market prices for recent trades and
transactions in comparable securities, benchmark yields, interest rate yield
curves, credit spreads, quoted prices for similar securities, and other
market-observable information, as applicable. Specific attributes of the
security being valued also are considered, including its term, interest
rate, credit rating, industry sector, and when applicable, collateral
quality and other security- or issuer-specific information. When
insufficient market observable information is available upon which to
measure fair value, the Company either will request brokers knowledgeable
about these securities to provide a non-binding quote or will employ
internal valuation models. Fair values received from independent valuation
service providers and brokers and those internally modeled or otherwise
estimated are assessed for reasonableness.
Assets and liabilities measured at fair value on a recurring basis are
summarized below. At December 31, 2018 and December 31, 2017, no assets were
required to be measured at fair value on a non-recurring basis. Fair value
measurements are required on a non-recurring basis for certain assets,
including goodwill and mortgage loans on real estate, only when an OTTI or
other event occurs. When such fair value measurements are recorded, they
must be classified and disclosed within the fair value hierarchy. The
Company recognizes transfers between valuation levels at the beginning of
the reporting period.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2018
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------- -------- ------- --------
(IN MILLIONS)
ASSETS
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 25,202 $ 1,174 $ 26,376
U.S. Treasury, government and agency........ -- 13,335 -- 13,335
States and political subdivisions........... -- 416 38 454
Foreign governments......................... -- 519 -- 519
Residential mortgage-backed/(2)/............ -- 202 -- 202
Asset-backed/(3)/........................... -- 71 519 590
Redeemable preferred stock.................. 163 276 -- 439
------- -------- ------- --------
Total fixed maturities,
available-for-sale...................... 163 40,021 1,731 41,915
|
F-44
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------- --------- -------- ---------
(IN MILLIONS)
Other equity investments................... $ 12 $ -- $ -- $ 12
Trading securities......................... 218 14,919 29 15,166
Other invested assets:
Short-term investments.................... -- 412 -- 412
Assets of consolidated VIEs/VOEs.......... -- -- 19 19
Swaps..................................... -- 423 -- 423
Credit default swaps...................... -- 17 -- 17
Options................................... -- 956 -- 956
--------- --------- -------- ---------
Total other invested assets............. -- 1,808 19 1,827
Cash equivalents............................. 2,160 -- -- 2,160
GMIB reinsurance contracts asset............. -- -- 1,991 1,991
Separate Accounts assets..................... 105,159 2,733 374 108,266
--------- --------- -------- ---------
Total Assets.............................. $ 107,712 $ 59,481 $ 4,144 $ 171,337
========= ========= ======== =========
LIABILITIES
GMxB derivative features' liability.......... $ -- $ -- $ 5,431 $ 5,431
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 687 -- 687
--------- --------- -------- ---------
Total Liabilities......................... $ -- $ 687 $ 5,431 $ 6,118
========= ========= ======== =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2017
Level 1 Level 2 Level 3 Total
---------- --------- --------- ----------
(in millions)
Assets
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 20,343 $ 1,139 $ 21,482
U.S. Treasury, government and agency........ -- 13,135 -- 13,135
States and political subdivisions........... -- 441 40 481
Foreign governments......................... -- 409 -- 409
Residential mortgage-backed/(2)/............ -- 251 -- 251
Asset-backed/(3)/........................... -- 88 8 96
Redeemable preferred stock.................. 180 324 -- 504
---------- --------- --------- ----------
Total fixed maturities,
available-for-sale...................... 180 34,991 1,187 36,358
Other equity investments..................... 13 -- -- 13
Trading securities........................... 180 12,097 -- 12,277
Other invested assets........................
Short-term investments...................... -- 763 -- 763
Assets of consolidated VIEs/VOEs............ -- -- 25 25
Swaps....................................... -- 15 -- 15
Credit default swaps........................ -- 33 -- 33
Options..................................... -- 1,907 -- 1,907
---------- --------- --------- ----------
Total other invested assets............... -- 2,718 25 2,743
Cash equivalents............................... 1,908 -- -- 1,908
Segregated securities.......................... -- 9 -- 9
GMIB reinsurance contracts asset............... -- -- 10,488 10,488
Separate Accounts assets....................... 118,983 2,983 349 122,315
---------- --------- --------- ----------
Total Assets................................ $ 121,264 $ 52,798 $ 12,049 $ 186,111
========== ========= ========= ==========
|
F-45
Level 1 Level 2 Level 3 Total
-------- ------- --------- ---------
(in millions)
Liabilities
GMxB derivative features' liability.......... $ -- $ -- $ 4,256 $ 4,256
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 1,698 -- 1,698
-------- ------- --------- ---------
Total Liabilities......................... $ -- $ 1,698 $ 4,256 $ 5,954
======== ======= ========= =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
The fair values of the Company's public fixed maturities are generally based
on prices obtained from independent valuation service providers and for
which the Company maintains a vendor hierarchy by asset type based on
historical pricing experience and vendor expertise. Although each security
generally is priced by multiple independent valuation service providers, the
Company ultimately uses the price received from the independent valuation
service provider highest in the vendor hierarchy based on the respective
asset type, with limited exception. To validate reasonableness, prices also
are internally reviewed by those with relevant expertise through comparison
with directly observed recent market trades. Consistent with the fair value
hierarchy, public fixed maturities validated in this manner generally are
reflected within Level 2, as they are primarily based on observable pricing
for similar assets and/or other market observable inputs. If the pricing
information received from independent valuation service providers is not
reflective of market activity or other inputs observable in the market, the
Company may challenge the price through a formal process in accordance with
the terms of the respective independent valuation service provider
agreement. If as a result it is determined that the independent valuation
service provider is able to reprice the security in a manner agreed as more
consistent with current market observations, the security remains within
Level 2. Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
The fair values of the Company's private fixed maturities are determined
from prices obtained from independent valuation service providers. Prices
not obtained from an independent valuation service provider are determined
by using a discounted cash flow model or a market comparable company
valuation technique. In certain cases, these models use observable inputs
with a discount rate based upon the average of spread surveys collected from
private market intermediaries who are active in both primary and secondary
transactions, taking into account, among other factors, the credit quality
and industry sector of the issuer and the reduced liquidity associated with
private placements. Generally, these securities have been reflected within
Level 2. For certain private fixed maturities, the discounted cash flow
model or a market comparable company valuation technique may also
incorporate unobservable inputs, which reflect the Company's own assumptions
about the inputs market participants would use in pricing the asset. To the
extent management determines that such unobservable inputs are significant
to the fair value measurement of a security, a Level 3 classification
generally is made.
The net fair value of the Company's freestanding derivative positions as
disclosed in Note 3 are generally based on prices obtained either from
independent valuation service providers or derived by applying market inputs
from recognized vendors into industry standard pricing models. The majority
of these derivative contracts are traded in the OTC derivative market and
are classified in Level 2. The fair values of derivative assets and
liabilities traded in the OTC market are determined using quantitative
models that require use of the contractual terms of the derivative
instruments and multiple market inputs, including interest rates, prices,
and indices to generate continuous yield or pricing curves, including
overnight index swap ("OIS") curves, and volatility factors, which then are
applied to value the positions. The predominance of market inputs is
actively quoted and can be validated through external sources or reliably
interpolated if less observable. If the pricing information received from
independent valuation service providers is not reflective of market activity
or other inputs observable in the market, the Company may challenge the
price through a formal process in accordance with the terms of the
respective independent valuation service provider agreement. If as a result
it is determined that the independent valuation service provider is able to
reprice the derivative instrument in a manner agreed as more consistent with
current market observations, the position remains within Level 2.
Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
Investments classified as Level 1 primarily include redeemable preferred
stock, trading securities, cash equivalents and Separate Account assets.
Fair value measurements classified as Level 1 include exchange-traded prices
of fixed maturities, equity securities and derivative contracts, and net
asset values for transacting subscriptions and redemptions of mutual fund
shares held by Separate Accounts. Cash equivalents classified as Level 1
include money market accounts, overnight commercial paper and highly liquid
debt instruments purchased with an original maturity of three months or less
and are carried at cost as a proxy for fair value measurement due to their
short-term nature.
F-46
Investments classified as Level 2 are measured at fair value on a recurring
basis and primarily include U.S. government and agency securities and
certain corporate debt securities, such as public and private fixed
maturities. As market quotes generally are not readily available or
accessible for these securities, their fair value measures are determined
utilizing relevant information generated by market transactions involving
comparable securities and often are based on model pricing techniques that
effectively discount prospective cash flows to present value using
appropriate sector-adjusted credit spreads commensurate with the security's
duration, also taking into consideration issuer-specific credit quality and
liquidity. Segregated securities classified as Level 2 are U.S. Treasury
bills segregated in a special reserve bank custody account for the exclusive
benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange
Act and for which fair values are based on quoted yields in secondary
markets.
Observable inputs generally used to measure the fair value of securities
classified as Level 2 include benchmark yields, reported secondary trades,
issuer spreads, benchmark securities and other reference data. Additional
observable inputs are used when available, and as may be appropriate, for
certain security types, such as prepayment, default, and collateral
information for the purpose of measuring the fair value of mortgage- and
asset-backed securities. The Company's AAA-rated mortgage- and asset-backed
securities are classified as Level 2 for which the observability of market
inputs to their pricing models is supported by sufficient, albeit more
recently contracted, market activity in these sectors.
Certain Company products such as the SCS and EQUI-VEST variable annuity
products, and in the MSO fund available in some life contracts offer
investment options which permit the contract owner to participate in the
performance of an index, ETF or commodity price. These investment options,
which depending on the product and on the index selected can currently
have 1, 3, 5, or 6-year terms, provide for participation in the performance
of specified indices, ETF or commodity price movement up to a
segment-specific declared maximum rate. Under certain conditions that vary
by product, e.g. holding these segments for the full term, these segments
also shield policyholders from some or all negative investment performance
associated with these indices, ETF or commodity prices. These investment
options have defined formulaic liability amounts, and the current values of
the option component of these segment reserves are accounted for as Level 2
embedded derivatives. The fair values of these embedded derivatives are
based on data obtained from independent valuation service providers.
The Company's investments classified as Level 3 primarily include corporate
debt securities, such as private fixed maturities. Determinations to
classify fair value measures within Level 3 of the valuation hierarchy
generally are based upon the significance of the unobservable factors to the
overall fair value measurement. Included in the Level 3 classification are
fixed maturities with indicative pricing obtained from brokers that
otherwise could not be corroborated to market observable data. The Company
applies various due diligence procedures, as considered appropriate, to
validate these non-binding broker quotes for reasonableness, based on its
understanding of the markets, including use of internally-developed
assumptions about inputs a market participant would use to price the
security. In addition, asset-backed securities are classified as Level 3.
The Company also issues certain benefits on its variable annuity products
that are accounted for as derivatives and are also considered Level 3. The
GMIBNLG feature allows the policyholder to receive guaranteed minimum
lifetime annuity payments based on predetermined annuity purchase rates
applied to the contract's benefit base if and when the contract account
value is depleted and the NLG feature is activated. The GMWB feature allows
the policyholder to withdraw at minimum, over the life of the contract, an
amount based on the contract's benefit base. The GWBL feature allows the
policyholder to withdraw, each year for the life of the contract, a
specified annual percentage of an amount based on the contract's benefit
base. The GMAB feature increases the contract account value at the end of a
specified period to a GMAB base. The GIB feature provides a lifetime annuity
based on predetermined annuity purchase rates if and when the contract
account value is depleted. This lifetime annuity is based on predetermined
annuity purchase rates applied to a GIB base.
Level 3 also includes the GMIB reinsurance contract assets which are
accounted for as derivative contracts. The GMIB reinsurance contract asset
and liabilities' fair value reflects the present value of reinsurance
premiums and recoveries and risk margins over a range of market consistent
economic scenarios while GMxB derivative features liability reflects the
present value of expected future payments (benefits) less fees, adjusted for
risk margins and nonperformance risk, attributable to GMxB derivative
features' liability over a range of market-consistent economic scenarios.
The valuations of the GMIB reinsurance contract asset and GMxB derivative
features liability incorporate significant non-observable assumptions
related to policyholder behavior, risk margins and projections of equity
separate account funds. The credit risks of the counterparty and of the
Company are considered in determining the fair values of its GMIB
reinsurance contract asset and GMxB derivative features liability positions,
respectively, after taking into account the effects of collateral
arrangements. Incremental adjustment to the swap curve for non-performance
risk is made to the fair values of the GMIB reinsurance contract asset and
liabilities and GMIBNLG feature to reflect the claims-paying ratings of
counterparties and the Company. Equity and fixed income volatilities were
modeled to reflect current market volatilities. Due to the unique, long
duration of the GMIBNLG feature, adjustments were made to the equity
volatilities to remove the illiquidity bias associated with the longer
tenors and risk margins were applied to the non-capital markets inputs to
the GMIBNLG valuations.
F-47
After giving consideration to collateral arrangements, the Company reduced
the fair value of its GMIB reinsurance contract asset by $184 million and
$69 million at December 31, 2018 and 2017, respectively, to recognize
incremental counterparty non-performance risk.
Lapse rates are adjusted at the contract level based on a comparison of the
actuarially calculated guaranteed values and the current policyholder
account value, which include other factors such as considering surrender
charges. Generally, lapse rates are assumed to be lower in periods when a
surrender charge applies. A dynamic lapse function reduces the base lapse
rate when the guaranteed amount is greater than the account value as in the
money contracts are less likely to lapse. For valuing the embedded
derivative, lapse rates vary throughout the period over which cash flows are
projected.
The Company's consolidated VIEs/VOEs hold investments that are classified as
Level 3 and primarily consist of corporate bonds that are vendor priced with
no ratings available, bank loans, non-agency collateralized mortgage
obligations and asset-backed securities.
In 2018, AFS fixed maturities with fair values of $28 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $83 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.9% of total equity at December 31, 2018.
In 2017, AFS fixed maturities with fair values of $6 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $7 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.1% of total equity at December 31, 2017.
The table below presents a reconciliation for all Level 3 assets and
liabilities at December 31, 2018, 2017 and 2016 respectively:
LEVEL 3 INSTRUMENTS
FAIR VALUE MEASUREMENTS
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED ASSET-BACKED
----------- -------------- ----------- ---------- ------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ 1,139 $ 40 $ -- $ -- $ 8
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 7 -- -- -- (2)
Investment gains (losses), net............ (8) -- -- -- --
----------- -------------- ----------- ---------- ------------
Subtotal..................................... (1) -- -- -- (2)
----------- -------------- ----------- ---------- ------------
Other comprehensive income (loss).............. (20) (1) -- -- (7)
Purchases...................................... 322 -- -- -- 550
Sales.......................................... (321) (1) -- -- (30)
Transfers into Level 3/(1)/.................... 83 -- -- -- --
Transfers out of Level 3/(1)/.................. (28) -- -- -- --
----------- -------------- ----------- ---------- ------------
BALANCE, DECEMBER 31, 2018..................... $ 1,174 $ 38 $ -- $ -- $ 519
=========== ============== =========== ========== ============
|
F-48
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE- ASSET-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED BACKED
--------- ------------- ------------ ------------ --------
(IN MILLIONS)
Balance, January 1, 2017....................... $ 845 $ 42 $ -- $ 349 $ 24
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 5 -- -- (2) --
Investment gains (losses), net............ 2 -- -- (63) 15
--------- ------------- ------------ ------------ --------
Subtotal..................................... 7 -- -- (65) 15
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 4 (1) -- 45 (9)
Purchases...................................... 612 -- -- -- --
Sales.......................................... (331) (1) -- (329) (21)
Transfers into Level 3/(1)/.................... 7 -- -- -- --
Transfers out of Level 3/(1)/.................. (5) -- -- -- (1)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2017..................... $ 1,139 $ 40 $ -- $ -- $ 8
========= ============= ============ ============ ========
Balance, January 1, 2016....................... $ 420 $ 45 $ 1 $ 503 $ 40
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Subtotal..................................... 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 7 (2) -- 14 1
Purchases...................................... 572 -- -- -- --
Sales.......................................... (142) (1) -- (87) (8)
Transfers into Level 3/(1)/.................... 25 -- -- -- --
Transfers out of Level 3/(1)/.................. (38) -- (1) (14) (9)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2016..................... $ 845 $ 42 $ -- $ 349 $ 24
========= ============= ============ ============ ========
|
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ------------ -------- ----------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 26 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (972) -- (296)
Non-performance risk/(4)/................. -- -- (96) -- (490)
----------- --------------- ------------ -------- ----------
Subtotal..................................... -- -- (1,068) 26 (786)
----------- --------------- ------------ -------- ----------
Purchases/(2)/................................. -- 29 96 5 (403)
Sales/(3)/..................................... -- -- (62) (1) 14
Settlements.................................... -- -- (7,463) (5) --
Activity related to consolidated VIEs/ VOEs.... -- (6) -- -- --
Transfers into Level 3/(1)/.................... -- 5 -- -- --
Transfers out of Level 3/(1)/.................. -- (5) -- -- --
----------- --------------- ------------ -------- ----------
BALANCE, DECEMBER 31, 2018..................... $ -- $ 48 $ 1,991 $ 374 $ (5,431)
=========== =============== ============ ======== ==========
|
F-49
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ----------- -------- ----------
Balance, January 1, 2017....................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 29 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (6) -- 1,443
Non-performance risk/(4)/................. -- -- 75 -- 149
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- 69 29 1,592
----------- -------------- ----------- -------- ----------
Other comprehensive............................
income(loss)................................... (1) -- -- -- --
Purchases/(2)/................................. -- -- 221 13 (381)
Sales/(3)/..................................... -- -- (115) (2) 6
Settlements.................................... -- -- -- (4) --
Activity related to consolidated VIEs/ VOEs.... -- (15) -- -- --
Transfers into level 3/(1)/.................... -- -- -- -- --
Transfers out of level 3/(1)/.................. -- -- -- -- --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2017..................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
=========== ============== =========== ======== ==========
Balance, January 1, 2016....................... $ -- $ 1 $ 10,582 $ 313 $ (5,266)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 19 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (242) -- (126)
Non-performance risk/(4)/................. -- -- (20) -- 263
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- (262) 19 137
----------- -------------- ----------- -------- ----------
Other comprehensive income (loss).............. -- (1) -- -- --
Purchases/(2)/................................. 1 -- 223 10 (348)
Sales/(3)/..................................... -- -- (230) -- 4
Settlements.................................... -- -- -- (7) --
Activities related to consolidated VIEs/ VOEs.. -- 40 -- -- --
Transfers into level 3/(1)/.................... -- -- -- 1 --
Transfers out of level 3/(1)/.................. -- -- (23) --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2016..................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
=========== ============== =========== ======== ==========
|
/(1)/Transfers into/out of Level 3 classification are reflected at
beginning-of-period fair values.
/(2)/For the GMIB reinsurance contract asset, and GMxB derivative features
liability, represents attributed fee.
/(3)/For the GMIB reinsurance contract asset, represents recoveries from
reinsurers and for GMxB derivative features liability represents
benefits paid.
/(4)/The Company's non-performance risk is recorded through Net derivative
gains (losses).
F-50
The table below details changes in unrealized gains (losses) for 2018, 2017
and 2016 by category for Level 3 assets and liabilities still held at
December 31, 2018, 2017 and 2016 respectively.
EARNINGS (LOSS)
---------------------------------
NET
INVESTMENT DERIVATIVE
GAINS GAINS
(LOSSES), NET (LOSSES) OCI
------------- ----------- ------
(IN MILLIONS)
HELD AS OF DECEMBER 31, 2018:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ (18)
State and political subdivisions.......... -- -- (1)
Asset-backed.............................. -- -- (7)
------------- ----------- ------
Subtotal................................ -- -- (26)
------------- ----------- ------
GMIB reinsurance contracts.................. -- (1,068) --
Separate Accounts assets/(1)/............... 26 -- --
GMxB derivative features liability.......... -- (786) --
------------- ----------- ------
Total................................... $ 26 $ (1,854) $ (26)
============= =========== ======
Held as of December 31, 2017:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 4
Commercial mortgage-backed................ -- -- 45
Asset-backed.............................. -- -- (9)
Subtotal................................ -- -- 40
------------- ----------- ------
GMIB reinsurance contracts.................. -- 69 --
------------- ----------- ------
Separate Accounts assets/(1)/............... 29 -- --
GMxB derivative features liability.......... -- 1,592 --
------------- ----------- ------
Total................................... $ 29 $ 1,661 $ 40
============= =========== ======
Held as of December 31, 2016:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 11
State and political subdivisions.......... -- -- (1)
Commercial mortgage-backed................ -- -- 9
Asset-backed.............................. -- -- 1
------------- ----------- ------
Subtotal................................ -- -- 20
------------- ----------- ------
GMIB reinsurance contracts.................. -- (262) --
Separate Accounts assets/(1)/............... 20 -- --
GMxB derivative features liability.......... -- 137 --
------------- ----------- ------
Total................................... $ 20 $ (125) $ 20
============= =========== ======
|
/(1)/There is an investment expense that offsets this investment gain (loss).
F-51
The following tables disclose quantitative information about Level 3 fair
value measurements by category for assets and liabilities as of December 31,
2018 and 2017, respectively.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2018
FAIR VALUATION SIGNIFICANT WEIGHTED
VALUE TECHNIQUE UNOBSERVABLE INPUT RANGE AVERAGE
------ ---------------------------- ------------------------ ------------- --------
(IN MILLIONS)
ASSETS:
Investments:
Fixed maturities,
available-for- sale:
Corporate................... $ 93 Matrix pricing model Spread over Benchmark 15 - 580 BPS 104 BPS
881 Market comparable companies EBITDA 4.1X - 37.8X 12.1X
multiples Discount 6.4% - 16.5% 10.7%
rate Cash flow multiples 1.8X - 18.0X 11.4X
--------------------------------------------------------------------------------------------------------------------
Separate Accounts assets....... 352 Third party appraisal Capitalization rate Exit 4.4%
capitalization 5.6%
rate Discount rate 6.5%
1 Discounted cash flow Spread over U.S.
Treasury curve Discount 248 BPS
factor 5.1%
--------------------------------------------------------------------------------------------------------------------
GMIB reinsurance Lapse rates Withdrawal
contract asset............... 1,991 Discounted cash flow rates Utilization 1.0% - 6.27%
rates Non-performance 0.0% - 8.0%
risk 0.0% - 16.0%
Volatility rates - 74 - 159 BPS
Equity Mortality 10.0% - 34.0%
rates/(1)/: Ages 0 - 0.01% - 0.18%
40 Ages 41 - 60 Ages 60 0.07% - 0.54%
- 115 0.42% - 42.0%
--------------------------------------------------------------------------------------------------------------------
LIABILITIES:
GMIBNLG........................ 5,341 Discounted cash flow Non-performance 189 BPS
risk Lapse 0.8% - 26.2%
rates Withdrawal rates 0.0% - 12.1%
Annuitization Mortality 0.0% - 100.0%
rates/(1)/: Ages 0 - 0.01% - 0.19%
40 Ages 41 - 60 Ages 60 0.06% - 0.53%
- 115 0.41% - 41.2%
--------------------------------------------------------------------------------------------------------------------
GWBL/GMWB...................... 130 Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 7.0%
rates Volatility rates - 100% AFTER
Equity DELAY
10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GIB............................ (48) Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 8.0%
rates Volatility rates - 0.0% - 16.0%
Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GMAB........................... 7 Discounted cash flow Lapse rates Volatility 1.0% - 5.7%
rates - Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-52
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2017
Fair Valuation Significant Weighted
Value Technique Unobservable Input Range Average
------- ---------------------- --------------------------------- ------------- --------
(in millions)
Assets:
Investments:
Fixed maturities,
available-for-sale:
Corporate.................. $ 53 Matrix pricing model
Spread over the industry-specific
benchmark yield curve 0 - 565 bps 125 bps
789 Market comparable EBITDA multiples 5.3x - 27.9x 12.9x
companies Discount rate 7.2% - 17.0% 11.1%
Cash flow multiples 9.0x - 17.7x 13.1x
----------------------------------------------------------------------------------------------------------------------
Separate Accounts assets...... 326 Third party appraisal Capitalization rate 4.6%
Exit capitalization rate 5.6%
Discount rate 6.6%
1 Discounted cash flow
Spread over U.S. Treasury curve 243 bps
Discount factor 4.4%
----------------------------------------------------------------------------------------------------------------------
GMIB reinsurance 10,488 Discounted cash flow Lapse rates 1.0% - 6.3%
contract asset.............. Withdrawal rates 0.0% - 8.0%
GMIB Utilization rates 0.0% - 16.0%
Non-performance risk 5bps - 10bps
Volatility rates - Equity 9.9% - 30.9%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.18%
Ages 41 - 60 0.07% - 0.54%
Ages 60 - 115 0.42% - 42.0%
----------------------------------------------------------------------------------------------------------------------
Liabilities:
GMIBNLG....................... 4,149 Discounted cash flow Non-performance risk 1.0%
Lapse rates 0.8% - 26.2%
Withdrawal rates 0.0% - 12.4%
Utilization rates 0.0% - 16.0%
NLG Forfeiture rates 0.6% - 2.1%
Long-term equity volatility 20.0%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.19%
Ages 41 - 60 0.06% - 0.53%
Ages 60 - 115 0.41% - 41.2%
----------------------------------------------------------------------------------------------------------------------
GWBL/GMWB..................... 130 Discounted cash flow Lapse rates 0.9% - 5.7%
Withdrawal rates 0.0% - 7.0%
Utilization rates 0.0% - 16.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GIB........................... (27) Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GMAB.......................... 5 Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-53
Excluded from the tables above at December 31, 2018 and 2017, respectively,
are approximately $826 million and $392 million of Level 3 fair value
measurements of investments for which the underlying quantitative inputs are
not developed by the Company and are not readily available. These
investments primarily consist of certain privately placed debt securities
with limited trading activity, including residential mortgage- and
asset-backed instruments, and their fair values generally reflect unadjusted
prices obtained from independent valuation service providers and indicative,
non-binding quotes obtained from third-party broker-dealers recognized as
market participants. Significant increases or decreases in the fair value
amounts received from these pricing sources may result in the Company's
reporting significantly higher or lower fair value measurements for these
Level 3 investments.
The fair value of private placement securities is determined by application
of a matrix pricing model or a market comparable company value technique.
The significant unobservable input to the matrix pricing model valuation
technique is the spread over the industry-specific benchmark yield curve.
Generally, an increase or decrease in spreads would lead to directionally
inverse movement in the fair value measurements of these securities. The
significant unobservable input to the market comparable company valuation
technique is the discount rate. Generally, a significant increase (decrease)
in the discount rate would result in significantly lower (higher) fair value
measurements of these securities.
Residential mortgage-backed securities classified as Level 3 primarily
consist of non-agency paper with low trading activity. Included in the
tables above at December 31, 2018 and 2017, there were no Level 3 securities
that were determined by application of a matrix-pricing model and for which
the spread over the U.S. Treasury curve is the most significant unobservable
input to the pricing result. Generally, a change in spreads would lead to
directionally inverse movement in the fair value measurements of these
securities.
Asset-backed securities classified as Level 3 primarily consist of
non-agency mortgage loan trust certificates, including subprime and Alt-A
paper, credit tenant loans, and equipment financings. Included in the tables
above at December 31, 2018 and 2017, there were no securities that were
determined by the application of matrix-pricing for which the spread over
the U.S. Treasury curve is the most significant unobservable input to the
pricing result. Significant increases (decreases) in spreads would result in
significantly lower (higher) fair value measurements.
Included in other equity investments classified as Level 3 are reporting
entities' venture capital securities in the Technology, Media and
Telecommunications industries. The fair value measurements of these
securities include significant unobservable inputs including an enterprise
value to revenue multiples and a discount rate to account for liquidity and
various risk factors. Significant increases (decreases) in the enterprise
value to revenue multiple inputs in isolation would result in a
significantly higher (lower) fair value measurement. Significant increases
(decreases) in the discount rate would result in a significantly lower
(higher) fair value measurement.
Separate Accounts assets classified as Level 3 in the table at December 31,
2018 and 2017, primarily consist of a private real estate fund and mortgage
loans. A third-party appraisal valuation technique is used to measure the
fair value of the private real estate investment fund, including
consideration of observable replacement cost and sales comparisons for the
underlying commercial properties, as well as the results from applying a
discounted cash flow approach. Significant increase (decrease) in isolation
in the capitalization rate and exit capitalization rate assumptions used in
the discounted cash flow approach to the appraisal value would result in a
higher (lower) measure of fair value. With respect to the fair value
measurement of mortgage loans a discounted cash flow approach is applied, a
significant increase (decrease) in the assumed spread over U.S. Treasury
securities would produce a lower (higher) fair value measurement. Changes in
the discount rate or factor used in the valuation techniques to determine
the fair values of these private equity investments and mortgage loans
generally are not correlated to changes in the other significant
unobservable inputs. Significant increase (decrease) in isolation in the
discount rate or factor would result in significantly lower (higher) fair
value measurements. These fair value measurements are determined using
substantially the same valuation techniques as earlier described above for
the Company's General Account investments in these securities.
Significant unobservable inputs with respect to the fair value measurement
of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities
identified in the table above are developed using the Company data.
Validations of unobservable inputs are performed to the extent the Company
has experience. When an input is changed the model is updated and the
results of each step of the model are analyzed for reasonableness.
The significant unobservable inputs used in the fair value measurement of
the Company's GMIB reinsurance contract asset are lapse rates, withdrawal
rates and GMIB utilization rates. Significant increases in GMIB utilization
rates or decreases in lapse or withdrawal rates in isolation would tend to
increase the GMIB reinsurance contract asset.
Fair value measurement of the GMIB reinsurance contract asset and
liabilities includes dynamic lapse and GMIB utilization assumptions whereby
projected contractual lapses and GMIB utilization reflect the projected net
amount of risks of the contract. As the net amount of risk of a contract
increases, the assumed lapse rate decreases and the GMIB utilization
increases. Increases in volatility would increase the asset and liabilities.
F-54
The significant unobservable inputs used in the fair value measurement of
the Company's GMIBNLG liability are lapse rates, withdrawal rates, GMIB
utilization rates, adjustment for Non-performance risk and NLG forfeiture
rates. NLG forfeiture rates are caused by excess withdrawals above the
annual GMIB accrual rate that cause the NLG to expire. Significant decreases
in lapse rates, NLG forfeiture rates, adjustment for non-performance risk
and GMIB utilization rates would tend to increase the GMIBNLG liability,
while decreases in withdrawal rates and volatility rates would tend to
decrease the GMIBNLG liability.
The significant unobservable inputs used in the fair value measurement of
the Company's GMWB and GWBL liability are lapse rates and withdrawal rates.
Significant increases in withdrawal rates or decreases in lapse rates in
isolation would tend to increase these liabilities. Increases in volatility
would increase these liabilities.
Certain financial instruments are exempt from the requirements for fair
value disclosure, such as insurance liabilities other than financial
guarantees and investment contracts, limited partnerships accounted for
under the equity method and pension and other postretirement obligations.
The carrying values and fair values at December 31, 2018 and 2017 for
financial instruments not otherwise disclosed in Note 3 are presented in the
table below.
FAIR VALUE
CARRYING -----------------------------------
VALUE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------- -------- -------- -------- --------
(IN MILLIONS)
DECEMBER 31, 2018:
Mortgage loans on real estate................ $ 11,818 $ -- $ -- $ 11,478 $ 11,478
Loans to affiliates.......................... 600 -- 603 -- 603
Policyholders' liabilities:
Investment contracts....................... 1,974 -- -- 2,015 2,015
FHLBNY funding agreements.................... 4,002 -- 3,956 -- 3,956
Policy loans................................. 3,267 -- -- 3,944 3,944
Short-term and long-term debt................ -- -- -- -- --
Loans from affiliates........................ 572 -- 572 -- 572
Separate Accounts liabilities................ 7,406 -- -- 7,406 7,406
December 31, 2017:
Mortgage loans on real estate................ $ 10,935 $ -- $ -- $ 10,895 $ 10,895
Loans to affiliates.......................... 703 -- 700 -- 700
Policyholders' liabilities:
Investment contracts....................... 2,068 -- -- 2,170 2,170
FHLBNY funding agreements.................... 3,014 -- 3,020 -- 3,020
Policy loans................................. 3,315 -- -- 4,210 4,210
Short-term and long-term debt................ 203 -- 202 -- 202
Separate Accounts liabilities................ 7,537 -- -- 7,537 7,537
|
As our COLI policies are recorded at their cash surrender value, they are
not required to be included in the table above. For further details of our
accounting policies pertaining to COLI, see Note 2.
Fair values for commercial and agricultural mortgage loans on real estate
are measured by discounting future contractual cash flows to be received on
the mortgage loan using interest rates at which loans with similar
characteristics and credit quality would be made. The discount rate is
derived based on the appropriate U.S. Treasury rate with a like term to the
remaining term of the loan to which a spread reflective of the risk premium
associated with the specific loan is added. Fair values for mortgage loans
anticipated to be foreclosed and problem mortgage loans are limited to the
fair value of the underlying collateral, if lower.
Fair values for the Company's long-term debt related to real estate joint
ventures are determined by a third-party appraisal and assessed for
reasonableness. The Company's short-term debt primarily includes commercial
paper with short-term maturities and carrying value approximates fair value.
The fair values for the Company's other long-term debt are determined by
Bloomberg's evaluated pricing service, which uses direct observations or
observed comparables. The fair values of the Company's borrowing and lending
arrangements with AXA affiliated entities are determined in the same manner
as for such transactions with third parties, including matrix pricing models
for debt securities and discounted cash flow analysis for mortgage loans.
The fair value of policy loans is calculated by discounting expected cash
flows based upon the U.S. treasury yield curve and historical loan repayment
patterns.
F-55
The fair values of the Company's funding agreements are determined by
discounted cash flow analysis based on the indicative funding agreement
rates published by the FHLB.
The fair values for the Company's association plans contracts, supplementary
contracts not involving life contingencies ("SCNILC"), deferred annuities
and certain annuities, which are included in Policyholders' account balances
and liabilities for investment contracts with fund investments in Separate
Accounts are estimated using projected cash flows discounted at rates
reflecting current market rates. Significant unobservable inputs reflected
in the cash flows include lapse rates and withdrawal rates. Incremental
adjustments may be made to the fair value to reflect non-performance risk.
Certain other products such as Access Accounts and Escrow Shield Plus
product reserves are held at book value.
8) INSURANCE LIABILITIES
Variable Annuity Contracts -- GMDB, GMIB, GIB and GWBL and Other Features
The Company has certain variable annuity contracts with GMDB, GMIB, GIB and
GWBL and other features in-force that guarantee one of the following:
. Return of Premium: the benefit is the greater of current account
value or premiums paid (adjusted for withdrawals);
. Ratchet: the benefit is the greatest of current account value,
premiums paid (adjusted for withdrawals), or the highest account
value on any anniversary up to contractually specified ages (adjusted
for withdrawals);
. Roll-Up: the benefit is the greater of current account value or
premiums paid (adjusted for withdrawals) accumulated at contractually
specified interest rates up to specified ages;
. Combo: the benefit is the greater of the ratchet benefit or the
roll-up benefit, which may include either a five year or an annual
reset; or
. Withdrawal: the withdrawal is guaranteed up to a maximum amount per
year for life.
LIABILITIES FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES AND
NO NLG FEATURE
The change in the liabilities for variable annuity contracts with GMDB and
GMIB features and no NLG feature are summarized in the tables below. The
amounts for the direct contracts (before reinsurance ceded) and assumed
contracts are reflected in the consolidated balance sheets in Future policy
benefits and other policyholders' liabilities. The amounts for the ceded
contracts are reflected in the consolidated balance sheets in Amounts due
from reinsurers.
CHANGE IN LIABILITY FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AND
NO NLG FEATURE
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
GMDB GMIB
---------------- ----------------
DIRECT CEDED DIRECT CEDED
------- ------- ------ --------
(IN MILLIONS)
Balance at January 1, 2016................... $ 2,991 $(1,430) $3,886 $(10,575)
Paid guarantee benefits.................... (357) 174 (281) 230
Other changes in reserve................... 525 (302) 203 31
------- ------- ------ --------
Balance at December 31, 2016................. 3,159 (1,558) 3,808 (10,314)
Paid guarantee benefits.................... (354) 171 (151) 115
Other changes in reserve................... 1,249 (643) 1,097 (289)
------- ------- ------ --------
Balance at December 31, 2017................. 4,054 (2,030) 4,754 (10,488)
Paid guarantee benefits.................... (394) 70 (153) 61
Other changes in reserve................... 994 1,853 (860) 8,435
------- ------- ------ --------
Balance at December 31, 2018................. $ 4,654 $ (107) $3,741 $ (1,992)
======= ======= ====== ========
|
F-56
LIABILITIES FOR EMBEDDED AND FREESTANDING INSURANCE RELATED DERIVATIVES
The liability for the GMxB derivative features liability, the liability for
SCS, SIO, MSO and IUL indexed features and the asset and liability for the
GMIB reinsurance contracts are considered embedded or freestanding insurance
derivatives and are reported at fair value. For the fair value of the assets
and liabilities associated with these embedded or freestanding insurance
derivatives, see Note 7.
ACCOUNT VALUES AND NET AMOUNT AT RISK
Account Values and Net Amount at Risk ("NAR") for direct variable annuity
contracts in force with GMDB and GMIB features as of December 31, 2018 are
presented in the following tables by guarantee type. For contracts with the
GMDB feature, the NAR in the event of death is the amount by which the GMDB
feature exceeds the related Account Values. For contracts with the GMIB
feature, the NAR in the event of annuitization is the amount by which the
present value of the GMIB benefits exceed the related Account Values, taking
into account the relationship between current annuity purchase rates and the
GMIB guaranteed annuity purchase rates. Since variable annuity contracts
with GMDB features may also offer GMIB guarantees in the same contract, the
GMDB and GMIB amounts listed are not mutually exclusive.
DIRECT VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AS OF DECEMBER 31, 2018
GUARANTEE TYPE
---------------------------------------------------------
RETURN OF
PREMIUM RATCHET ROLL-UP COMBO TOTAL
---------- ----------- ---------- --------- ---------
(IN MILLIONS; EXCEPT AGE AND INTEREST RATE)
Variable annuity contracts with GMDB features
---------------------------------------------
Account Values invested in:
General Account............................ $ 14,035 $ 102 $ 61 $ 184 $ 14,382
Separate Accounts.......................... 41,463 8,382 2,903 30,406 83,154
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ 55,498 $ 8,484 $ 2,964 $ 30,590 $ 97,536
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ 418 $ 791 $ 2,291 $ 20,587 $ 24,087
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ 418 $ 772 $ 1,615 $ 20,587 $ 23,392
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. 51.4 67.0 73.6 69.0 55.3
Percentage of policyholders over age 70..... 10.0% 43.0% 65.5% 49.9% 18.8%
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
Variable annuity contracts with GMIB features
---------------------------------------------
Account Values invested in:
General Account............................ $ -- $ -- $ 19 $ 251 $ 270
Separate Accounts.......................... -- -- 19,407 33,428 52,835
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ -- $ -- $ 19,426 $ 33,679 $ 53,105
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ -- $ -- $ 994 $ 9,156 $ 10,150
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ -- $ -- $ 309 $ 8,268 $ 8,577
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. N/A N/A 68.9 68.8 68.8
Weighted average years remaining
until annuitization........................ N/A N/A 1.7 0.5 0.6
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
|
For more information about the reinsurance programs of the Company's GMDB
and GMIB exposure, see "Reinsurance Agreements" in Note 10.
F-57
Separate Account Investments by Investment Category Underlying Variable
Annuity Contracts with GMDB and GMIB Features
The total Account Values of variable annuity contracts with GMDB and GMIB
features include amounts allocated to the guaranteed interest option, which
is part of the General Account and variable investment options that invest
through Separate Accounts in variable insurance trusts. The following table
presents the aggregate fair value of assets, by major investment category,
held by Separate Accounts that support variable annuity contracts with GMDB
and GMIB features. The investment performance of the assets impacts the
related Account Values and, consequently, the NAR associated with the GMDB
and GMIB benefits and guarantees. Because the Company's variable annuity
contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not
mutually exclusive.
INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
AS OF DECEMBER 31,
-----------------------------------
2018 2017
----------------- -----------------
GMDB GMIB GMDB GMIB
-------- -------- -------- --------
(IN MILLIONS)
Investment type:
----------------
Equity....................................... $ 35,541 $ 15,759 $ 41,658 $ 19,676
Fixed income................................. 5,173 2,812 5,469 3,110
Balanced..................................... 41,588 33,974 46,577 38,398
Other........................................ 852 290 968 314
-------- -------- -------- --------
Total........................................ $ 83,154 $ 52,835 $ 94,672 $ 61,498
======== ======== ======== ========
|
Hedging Programs for GMDB, GMIB, GIB and Other Features
Beginning in 2003, the Company established a program intended to hedge
certain risks associated first with the GMDB feature and, beginning in 2004,
with the GMIB feature of the Accumulator series of variable annuity
products. The program has also been extended to cover other guaranteed
benefits as they have been made available. This program utilizes derivative
contracts, such as exchange-traded equity, currency and interest rate
futures contracts, total return and/or equity swaps, interest rate swap and
floor contracts, swaptions, variance swaps as well as equity options, that
collectively are managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in the capital markets. At the present time, this program hedges
certain economic risks on products sold from 2001 forward, to the extent
such risks are not externally reinsured.
These programs do not qualify for hedge accounting treatment. Therefore,
gains (losses) on the derivatives contracts used in these programs,
including current period changes in fair value, are recognized in Net
investment income (loss) in the period in which they occur, and may
contribute to income (loss) volatility.
Variable and Interest-Sensitive Life Insurance Policies -- NLG
The NLG feature contained in variable and interest-sensitive life insurance
policies keeps them in force in situations where the policy value is not
sufficient to cover monthly charges then due. The NLG remains in effect so
long as the policy meets a contractually specified premium funding test and
certain other requirements.
The change in the liabilities for NLG liabilities, reflected in the General
Account in Future policy benefits and other policyholders' liabilities in
the consolidated balance sheets is summarized in the table below:
DIRECT REINSURANCE
LIABILITY CEDED NET
---------- ----------- -----
(IN MILLIONS)
Balance at January 1, 2016........................ $ 1,144 $ (510) $ 634
Other changes in reserves....................... 38 (96) (58)
---------- ----------- -----
Balance at December 31, 2016...................... 1,182 (606) 576
Paid guarantee benefits......................... (24) -- (24)
Other changes in reserves....................... (466) (58) (524)
---------- ----------- -----
Balance at December 31, 2017...................... 692 (664) 28
Paid guarantee benefits......................... (23) -- (23)
Other changes in reserves....................... 118 (69) 49
---------- ----------- -----
Balance at December 31, 2018...................... $ 787 $ (733) $ 54
========== =========== =====
|
F-58
9) REVENUE RECOGNITION
See "Revenue Recognition" in Note 2 for a description of the revenues
presented in the table below. The adoption of ASC 606 had no material impact
on revenue recognition in 2018. The table below presents the revenues
recognized for the years ended December 31, 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Investment management, advisory and service fees:
Base fees........................................... $ 728 $ 720 $ 674
Distribution services............................... 301 287 277
-------- -------- ------
Total investment management and service fees....... $ 1,029 $ 1,007 $ 951
======== ======== ======
Other income.......................................... $ 33 $ 35 $ 23
======== ======== ======
|
For revenue related to AB, see Note 19.
10)REINSURANCE AGREEMENTS
The Company assumes and cedes reinsurance with other insurance companies.
The Company evaluates the financial condition of its reinsurers to minimize
its exposure to significant losses from reinsurer insolvencies. Ceded
reinsurance does not relieve the originating insurer of liability. The
following table summarizes the effect of reinsurance:
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Direct premiums.................................... $ 836 $ 880 $ 850
Reinsurance assumed................................ 186 195 206
Reinsurance ceded.................................. (160) (171) (176)
-------- -------- ------
Net premiums....................................... $ 862 $ 904 $ 880
======== ======== ======
Policy charges and fee income ceded................ $ 467 $ 718 $ 640
======== ======== ======
Policyholders' benefits ceded...................... $ 592 $ 694 $ 942
======== ======== ======
|
Ceded Reinsurance
The Company reinsures most of its new variable life, UL and term life
policies on an excess of retention basis. The Company generally retains on a
per life basis up to $25 million for single lives and $30 million for joint
lives with the excess 100% reinsured. The Company also reinsures risk on
certain substandard underwriting risks and in certain other cases.
Effective February 1, 2018, AXA Equitable Life entered into a coinsurance
reinsurance agreement (the "Coinsurance Agreement") to cede 90% of
its single premium deferred annuities ("SPDA") products issued between
1978-2001 and its Guaranteed Growth Annuity ("GGA") single premium deferred
annuity products issued between 2001-2014. As a result of this agreement,
AXA Equitable Life transferred securities with a market value of $604
million and cash of $31 million to equal the statutory reserves of
approximately $635 million. As the risks transferred by AXA Equitable Life
to the reinsurer under the Coinsurance Agreement are not considered
insurance risks and therefore do not qualify for reinsurance accounting, AXA
Equitable Life applied deposit accounting. Accordingly, AXA Equitable Life
recorded the transferred assets of $635 million as a deposit asset recorded
in Other assets, net of the ceding commissions paid to the reinsurer.
At December 31, 2018 and 2017, the Company had reinsured with non-affiliates
in the aggregate approximately 2.9% and 3.5%, respectively, of its current
exposure to the GMDB obligation on annuity contracts in-force and, subject
to certain maximum amounts or caps in any one period, approximately 15.5%
and 16.8% of its current liability exposure, respectively, resulting from
the GMIB feature. For additional information, see Note 8.
Based on management's estimates of future contract cash flows and
experience, the estimated net fair values of the ceded GMIB reinsurance
contracts, considered derivatives were $1,991 million and $10,488 million at
December 31, 2018 and 2017, respectively. The estimated fair values
decreased $8,497 million and $268 million during 2018 and 2016,
respectively, and increased $174 million during 2017.
F-59
At December 31, 2018 and 2017, third-party reinsurance recoverables related
to insurance contracts amounted to $2,243 million and $2,420 million,
respectively. Additionally, $1,689 million and $1,882 million of the amounts
due from reinsurers related to two specific reinsurers, Zurich Insurance
Company Ltd. (AA -- rating by S&P), and Paul Revere Life Insurance Company
(A -- rating by S&P).
Reinsurance payables related to insurance contracts were $113 million and
$134 million, at December 31, 2018 and 2017, respectively.
The Company cedes substantially all of its group health business to a
third-party insurer. Insurance liabilities ceded totaled $62 million and $71
million at December 31, 2018 and 2017, respectively.
The Company also cedes a portion of its extended term insurance and paid-up
life insurance and substantially all of its individual disability income
business through various coinsurance agreements.
Assumed Reinsurance
In addition to the sale of insurance products, the Company currently acts as
a professional retrocessionaire by assuming risk from professional
reinsurers. The Company assumes accident, life, health, aviation, special
risk and space risks by participating in or reinsuring various reinsurance
pools and arrangements. Reinsurance assumed reserves were $712 million and
$716 million at December 31, 2018 and 2017, respectively.
For reinsurance agreements with affiliates, see "Related Party Transactions"
in Note 12.
11)LONG-TERM DEBT
Disposition of Real Estate Joint Ventures
In March 2018, the Company sold its interest in two consolidated real estate
joint ventures to AXA France for a total purchase price of approximately
$143 million, which resulted in a pre-tax loss of $0.2 million and the
reduction of $202 million of long-term debt on the Company's balance sheet
for the year ended December 31, 2018.
12)RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control
or exercise significant influence over the other party in making financial
or operating decisions. The Company has entered into a number of related
party transactions with AXA and its subsidiaries that are not part of the
Company (collectively, "AXA Affiliates") and other related parties that are
described herein.
Since transactions with related parties may raise potential or actual
conflicts of interest between the related party and the Company, the Company
is subject to Holdings' related party transaction policy which requires
certain related party transactions to be reviewed and approved by
independent Audit Committee members.
Cost Sharing and General Service Agreements
In the second quarter of 2018, AXA Equitable entered into a general services
agreement with Holdings whereby AXA Equitable will benefit from the services
received by Holdings from AXA Affiliates for a limited period following the
Holdings IPO under a transition services agreement. The general services
agreement with Holdings replaces existing cost-sharing and general service
agreements with various AXA Affiliates. AXA Equitable continues to provide
services to Holdings and various AXA Affiliates under a separate existing
general services agreement with Holdings. Costs allocated to the Company
from Holdings totaled $138 million for the year ended December 31, 2018 and
are allocated based on cost center tracking of expenses. The cost centers
are approved once a year and are updated based on business area needs
throughout the year.
Loans to Affiliates:
AFFILIATE LOANS
On April 20, 2018, AXA Equitable made a loan of $800 million to Holdings
with an interest rate of 3.69% and maturing on April 20, 2021. Holdings
repaid $200 million of the note on December 21, 2018. The unpaid principal
balance of the note as of December 31, 2018 is $600 million.
F-60
In September 2007, AXA issued a $700 million 5.7% Senior Unsecured Note to
the Company. In January 2018, AXA pre-paid $50 million of the note. In April
2018, AXA pre-paid the remaining unpaid principal balance of this note.
SENIOR SURPLUS NOTES
On December 28, 2018, AXA Equitable, issued a $572 million senior surplus
note due December 28, 2019 to Holdings, which bears interest at a fixed rate
of 3.75%, payable semi-annually. The surplus note is intended to have
priority in right of payments and in all other respects to any and all other
surplus notes issued by AXA Equitable at any time. AXA Equitable repaid this
note on March 5, 2019.
Affiliate fees, revenue and expenses
INVESTMENT MANAGEMENT AND SERVICE FEES AND EXPENSES
AXA Equitable FMG, a subsidiary of AXA Equitable, provides investment
management and administrative services to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts, all of which are considered related parties. Investment
management and service fees earned are calculated as a percentage of assets
under management and are recorded as revenue as the related services are
performed.
AXA Investment Managers Inc. ("AXA IM") and AXA Rosenberg Investment
Management LLC ("AXA Rosenberg") provide sub-advisory services with respect
to certain portfolios of EQAT, VIP Trust and the Other AXA Trusts. Also, AXA
IM and AXA Real Estate Investment Managers ("AXA REIM") manage certain
General Account investments. Fees paid to these affiliates are based on
investment advisory service agreements with each affiliate.
Effective December 31, 2018, AXA Equitable transferred its interest in ABLP,
AB Holdings and the General Partner to a newly formed subsidiary and
distributed the shares of the subsidiary to its direct parent which
subsequently distributed the shares to Holdings (the "AB Business
Transfer"). Accordingly, AB's related party transactions with AXA Affiliates
and mutual funds sponsored by AB are now reflected as a discontinued
operation in the Company's consolidated financial statements for all periods
presented. Investment management and other services provided by AB to mutual
funds sponsored by AB prior to the AB Business Transfer will continue based
upon the Company's business needs. See Note 19 for further details of the AB
Business Transfer and the discontinued operation.
AFFILIATED DISTRIBUTION REVENUE AND EXPENSES
AXA Distributors receives commissions and fee revenue from MONY America for
sales of its insurance products. The commissions and fees earned from MONY
America are based on the various selling agreements.
AXA Equitable pays commissions and fees to AXA Distribution Holding
Corporation and its subsidiaries ("AXA Distribution") for sales of insurance
products. The commissions and fees paid to AXA Distribution are based on
various selling agreements.
Insurance related transactions
Prior to April 2018, AXA Equitable ceded to AXA RE Arizona, an indirect,
wholly owned subsidiary of Holdings, a (i) 100% quota share of all
liabilities for variable annuities with GMxB riders issued on or after
January 1, 2006 and in-force on September 30, 2008 (the "GMxB Business"),
(ii) 100% quota share of all liabilities for variable annuities with GMIB
riders issued on or after May 1, 1999 through August 31, 2005 in excess of
the liability assumed by two unaffiliated reinsurers, which are subject to
certain maximum amounts or limitations on aggregate claims, and (iii) 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under certain series of universal life insurance policies issued by AXA
Equitable on or after June 1, 2003 through June 30, 2007.
On April 12, 2018, AXA Equitable completed the unwind of the reinsurance
previously provided to AXA Equitable by AXA RE Arizona. Accordingly, all of
the business previously ceded to AXA RE Arizona, with the exception of the
GMxB Business, was novated to EQ AZ Life Re Company ("EQ AZ Life Re"), a
newly formed captive insurance company organized under the laws of Arizona,
which is an indirect wholly owned subsidiary of Holdings. Following the
novation of business to EQ AZ Life Re, AXA RE Arizona was merged with and
into AXA Equitable. Following AXA RE Arizona's merger with and into AXA
Equitable, the GMxB Business is not subject to any new internal or
third-party reinsurance arrangements, though in the future AXA Equitable may
reinsure the GMxB Business with third parties.
AXA RE Arizona novated the Life Business from AXA RE Arizona to EQ AZ Life
Re as part of the GMxB Unwind. As a result, EQ AZ Life Re reinsures a 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under UL insurance policies issued by AXA Equitable on or after June 1, 2003
through June 30, 2007 and the Excess Risks.
F-61
The GMxB Unwind was considered a pre-existing relationship required to be
effectively settled at fair value. The loss relating to this relationship
resulted from the settlement of the reinsurance contracts at fair value and
the write-off of previously recorded assets and liabilities related to this
relationship recorded in the Company's historical accounts. The pre-tax loss
recognized in the second quarter of 2018 was $2.6 billion ($2.1 billion net
of tax). The Company wrote-off a $1.8 billion deferred cost of reinsurance
asset which was previously reported in Other assets. Additionally, the
remaining portion of the loss was determining by calculating the difference
between the fair value of the assets received compared to the fair value of
the assets and liabilities already recorded within the Company's
consolidated financial statements. The Company's primary assets previously
recorded were reinsurance recoverables, including the reinsurance
recoverable associated with GMDB business. There was an approximate $400
million difference between the fair value of the GMDB recoverable compared
to its carrying value which is accounted for under ASC 944.
The assets received and the assets removed were as follows:
AS OF APRIL 12, 2018
(IN MILLIONS)
ASSETS RECEIVED ASSETS REMOVED
--------------- ----------------
Assets at fair value:
Fixed income securities.................... $ 7,083
Short-term investments..................... 205
Money market funds......................... 2
Accrued interest........................... 43
Derivatives................................ 282
Cash and cash equivalents.................. 1,273
---------------
Total...................................... $ 8,888
===============
Deferred cost of reinsurance asset........... $ 1,839
GMDB ceded reserves.......................... 2,317
GMIB reinsurance contract asset.............. 7,463
Payable to AXA RE Arizona.................... 270
----------------
Total...................................... $ 11,889
================
|
Significant non-cash transactions involved in the unwind of the reinsurance
previously provided to AXA Equitable Life by AXA RE Arizona included:
(a) the increase in total investments includes non-cash activities of $7,615
million for assets received related to the recapture transaction,
(b) cancellation of the $300 million surplus note between the Company and
AXA RE Arizona, and (c) settlement of the intercompany receivables/payables
to AXA RE Arizona of $270 million. In addition, upon merging the remaining
assets of AXA Re Arizona into AXA Equitable, $1.2 billion of deferred tax
assets were recorded on the balance sheet through an adjustment to Capital
in excess of par value.
The reinsurance arrangements with EQ AZ Life Re provide important capital
management benefits to AXA Equitable. At December 31, 2018, the Company's
GMIB reinsurance asset with EQ AZ Life Re had carrying values of $259
million and is reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2018 totaled approximately $100 million. Ceded claims
paid in 2018 were $78 million.
Prior to April 2018, AXA Equitable reinsured to AXA RE Arizona, a 100% quota
share of all liabilities for variable annuities with enhanced GMDB and GMIB
riders issued on or after January 1, 2006 and in-force on September 30,
2008. AXA RE Arizona also reinsured a 90% quota share of level premium term
insurance issued by AXA Equitable on or after March 1, 2003 through
December 31, 2008 and lapse protection riders under UL insurance policies
issued by AXA Equitable on or after June 1, 2003 through June 30, 2007. The
reinsurance arrangements with AXA RE Arizona provided important capital
management benefits to AXA Equitable. At December 31, 2017, the Company's
GMIB reinsurance asset with AXA RE Arizona had a carrying value of $8,594
million and was reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2017 and 2016 totaled approximately $454 million
and $447 million, respectively. Ceded claims paid in 2017 and 2016 were
$213 million and $65 million, respectively.
The Company receives statutory reserve credits for reinsurance treaties with
EQ AZ Life Re to the extent that EQ AZ Life Re holds assets in an
irrevocable trust (the "Trust"). At December 31, 2018, EQ AZ Life Re held
assets of $1.6 billion in the Trust, and had letters of credit of
$2.5 billion, which are guaranteed by Holdings. Under the reinsurance
transactions, EQ AZ Life Re is permitted to transfer assets from the Trust
under certain circumstances. The level of statutory reserves held by EQ AZ
Life Re fluctuate based on market movements, mortality experience and
policyholder behavior. Increasing reserve requirements may necessitate that
additional assets be placed in trust and/or securing additional letters of
credit, which could adversely impact EQ AZ Life Re's liquidity.
F-62
AXA Global Life retrocedes a quota share portion of certain life and health
risks of various AXA Affiliates to AXA Equitable on a one-year term basis.
Also, AXA Life Insurance Company Ltd. cedes a portion of its variable
deferred annuity business to AXA Equitable.
Premiums earned in 2018, 2017 and 2016 were $20 million, $20 million and $20
million, respectively. Claims and expenses paid in 2018, 2017 and 2016 were
$8 million, $5 million, and $6 million, respectively.
REINSURANCE CEDED
AXA Equitable cedes a portion of its life, health and catastrophe insurance
business through reinsurance agreements to AXA Global Life, an affiliate.
AXA Global Life, in turn, retrocedes a quota share portion of these risks
prior to 2008 to AXA Equitable on a one-year term basis.
AXA Equitable has entered into a Life Catastrophe Excess of Loss Reinsurance
Agreement with a number of subscribing reinsurers, including AXA Global
Life. AXA Global Life participates in 5% of the pool, pro-rata, across the
upper and lower layers.
Premiums and expenses paid for the above agreements in 2018, 2017 and 2016
were $4 million, $4 million, and $4 million, respectively.
Other Transactions
On October 1, 2018, AXA Financial merged with and into its direct parent,
Holdings, with Holdings continuing as the surviving entity. As a result,
Holdings assumed AXA Financial's obligations with respect to the Company,
including obligations related to certain benefit plans.
In March 2018, AXA Equitable sold its interest in two consolidated real
estate joint ventures to AXA France for a total purchase price of
approximately $143 million, which resulted in a pre-tax loss of $0.2 million
and the reduction of $202 million of long-term debt on the Company's balance
sheet for the year ended December 31, 2018.
In 2016, AXA Equitable and Saum Sing LLC ("Saum Sing"), an affiliate, formed
Broad Vista Partners LLC ("Broad Vista"), of which AXA Equitable owns 70%
and Saum Sing owns 30%. On June 30, 2016, Broad Vista entered into a real
estate joint venture with a third party and AXA Equitable invested
approximately $25 million.
Insurance Coverage Provided by XL Catlin
On September 12, 2018, AXA Group acquired XL Catlin. Prior to the
acquisition, AXA Equitable had ceded part of our disability income business
to XL Catlin and as of December 31, 2018, the reserves ceded were $93
million.
Expenses and Revenues for 2018, 2017 and 2016
The table below summarizes the expenses reimbursed to/from the Company and
the fees received/paid by the Company in connection with certain services
described above for the years ended December 31, 2018, 2017 and 2016.
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
EXPENSES PAID OR ACCRUED FOR:
Paid or accrued commission and fee expenses for
sale of insurance products by AXA Distribution.. $ 613 $ 608 $ 587
General services provided by AXA Affiliates....... 109 186 188
Investment management services provided by AXA
IM, AXA REIM and AXA Rosenberg.................. 2 5 2
-------- -------- --------
Total............................................. $ 724 $ 799 $ 777
======== ======== ========
REVENUE RECEIVED OR ACCRUED FOR:
Investment management and administrative services
provided to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts................................ $ 727 $ 720 $ 674
General services provided to AXA Affiliates....... 463 439 497
Amounts received or accrued for commissions and
fees earned for sale of MONY America's
insurance products.............................. 44 45 43
-------- -------- --------
Total............................................. $ 1,234 $ 1,204 $ 1,214
======== ======== ========
|
F-63
13)EMPLOYEE BENEFIT PLANS
401(k)
AXA Equitable sponsors the AXA Equitable 401(k) Plan, a qualified defined
contribution plan for eligible employees and financial professionals. The
plan provides for both a company contribution and a discretionary
profit-sharing contribution. Expenses associated with this 401(k) Plan were
$19 million, $15 million and $16 million for the years ended December 31,
2018, 2017 and 2016, respectively. In December 2018 the Company announced a
3% Company match for the AXA Equitable 401(k) Plan beginning January 1,
2019. This match will supplement the existing Company contribution on
eligible compensation.
Pension plan
AXA Equitable also sponsors the AXA Equitable Retirement Plan (the "AXA
Equitable QP"), a frozen qualified defined benefit pension plan covering its
eligible employees and financial professionals. This pension plan is
non-contributory and its benefits are generally based on a cash balance
formula and/or, for certain participants, years of service and average
income over a specified period in the plan. Effective December 31, 2015,
primary liability for the obligations of AXA Equitable Life under the AXA
Equitable Life QP was transferred from AXA Equitable Life to AXA Financial,
and upon the merger of AXA Financial into Holdings, Holdings assumes primary
liability under terms of an Assumption Agreement. AXA Equitable Life remains
secondarily liable for its obligations under the AXA Equitable Life QP and
would recognize such liability in the event Holdings does not perform under
the terms of the Assumption Agreement.
The AXA Equitable QP is not governed by a collective-bargaining agreement
and is not under a financial improvement plan or a rehabilitation plan. For
the years ended December 31, 2018, 2017 and 2016, expenses related to the
plan were $60 million, $27 million and $31 million, respectively.
The following table presents the funded status of the plan.
AS OF DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
LEGAL NAME OF PLAN: AXQ EQUITABLE RETIREMENT PLAN EIN# 13-5570651
Total Plan Assets................................................ $ 1,993 $ 2,325
======== ========
Accumulated Benefit Obligation................................... $ 2,039 $ 2,389
======== ========
Funded Status.................................................... 97.8% 97.3%
|
In addition to the AXA Equitable QP, AXA Equitable Life sponsors a
non-qualified retirement plan, a medical and life retiree plan, and a post
employment plan. The expenses related to these plans were $70 million, $37
million and $44 million for the years ended December 31, 2018, 2017 and
2016, respectively.
14)SHARE-BASED COMPENSATION PROGRAMS
Compensation costs for 2018, 2017 and 2016 for share-based payment
arrangements as further described herein are as follows:
YEARS ENDED DECEMBER 31,
-----------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
Performance Shares/(1)/........................... $ 12 $ 18 $ 17
Stock Options..................................... 2 1 1
AXA Shareplan..................................... -- 9 14
Restricted Stock Unit Awards/(2)/................. 16 2 --
Other Compensation Plans/(3)/..................... -- -- 1
----------- ----------- -----------
Total Compensation Expenses....................... $ 30 $ 30 $ 33
=========== =========== ===========
|
/(1)/Reflects change to performance share retirement rules. Specifically,
individuals who retire at any time after the grant date will continue to
vest in their 2017 performance shares while individuals who retire prior
to March 1, 2019 will forfeit all 2018 performance shares.
/(2)/Reflects a $10 million adjustment for awards in 2018 with graded
vesting, service-only conditions from the graded to the straight-line
attribution method.
/(3)/Includes stock appreciation rights and employee stock purchase plans.
F-64
In 2017 and prior years, equity awards for employees and directors were
available under the umbrella of AXA's global equity program. Accordingly,
equity awards granted in 2017 and prior years were linked to AXA's stock.
Following the IPO, Holdings has granted equity awards under the AXA
Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the "Omnibus Plan")
which was adopted by Holdings on April 25, 2018. Awards under the Omnibus
Plan are linked to Holdings' common stock. As of December 31, 2018, the
common stock reserved and available for issuance under the Omnibus Plan was
5.5 million shares.
2018 Equity Awards
All 2018 equity awards for Company employees and directors were granted
under the Omnibus Plan. Accordingly, all grants discussed in this section
will be settled in shares of Holdings' common stock. As described below,
Holdings made various grants of equity awards linked to the value of
Holdings' common stock in 2018. For awards with graded vesting schedules and
service-only vesting conditions, including restricted stock units ("RSUs")
and other forms of share-based payment awards, the Company applies a
straight-line expense attribution policy for the recognition of compensation
cost. Actual forfeitures with respect to the 2018 grants were considered
immaterial in the recognition of compensation cost.
TRANSACTION INCENTIVE AWARDS
On May 9, 2018, coincident with the IPO, Holdings granted one-time
"Transaction Incentive Awards" to executive officers and certain other
Company employees in the form of 0.6 million Holdings RSUs. Fifty percent of
the Holdings RSUs will vest based on service over a two-year period from the
IPO date (the "Service Units"), and fifty percent will vest based on service
and a market condition (the "Performance Units"). The market condition is
based on share price growth of at least 130% or 150% within a two or
five-year period, respectively. If the market condition is not achieved, 50%
of the Performance Units may still vest based on five years of continued
service and the remaining Performance Units will be forfeited. The $6
million aggregate grant-date fair value of the 0.3 million Service Units was
measured at the $20 IPO price of a Holdings share and will be charged to
compensation expense over the stated requisite service periods.
The grant-date fair value of half of the Performance Units, or 0.2 million
Holdings RSUs, was also measured at the $20 IPO price for a Holdings share
as employees are still able to vest in these awards even if the share price
growth targets are not achieved. The resulting $3 million for these awards
will be charged to compensation expense over the five-year requisite service
period. The grant-date fair value of $16.47 was used to value the remaining
half of the Performance Units that are subject to risk of forfeiture for
non-achievement of the Holdings share price conditions. The grant date fair
value was measured using a Monte Carlo simulation from which
a five-year requisite service period was derived, representing the median of
the distribution of stock price paths on which the market condition is
satisfied, over which the total $3 million compensation expense will be
recognized. In 2018, the Company recognized compensation expense associated
with the Transaction Incentive Awards of approximately $6 million.
SPECIAL IPO GRANT
Also, on May 9, 2018, Holdings made a grant of 0.2 million Holdings RSUs to
Company employees , or 50 restricted stock units to each eligible
individual, that cliff vested on November 9, 2018. The grant-date fair value
of the award was measured using the $20 IPO price for a Holdings share and
the resulting $5 million has been recognized as compensation expense over
the six-month service period ending November 9, 2018.
ANNUAL AWARDS UNDER 2018 EQUITY PROGRAM
Annual awards under Holdings' 2018 equity program consisted of a mix of
equity vehicles including Holdings RSUs, Holdings stock options and Holdings
performance shares. If Holdings pays any ordinary dividend in cash, all
outstanding Holdings RSUs and performance shares will accrue dividend
equivalents in the form of additional Holdings RSUs or performance shares to
be settled or forfeited consistent with the terms of the related award.
Holdings RSUs
On May 17, 2018, Holdings granted 0.8 million Holdings RSUs to Company
employees that vest ratably in equal annual installments over a three-year
period on each of the first three anniversaries of March 1, 2018. The fair
value of the award was measured using the closing price of the Holdings
share on the grant date, and the resulting $18 million will be recognized as
compensation expense over the shorter of the vesting term or the period up
to the date at which the participant becomes retirement eligible but not
prior to March 1, 2019.
F-65
Holdings Stock Options
On June 11, 2018, Holdings granted 0.9 million Holdings stock options to
Company employees. These options expire on March 1, 2028 and have
a three-year graded vesting schedule, with one-third vesting on each of
the three anniversaries of March 1, 2018. The exercise price for the options
is $21.34, which was the closing price of a Holdings share on the grant
date. The weighted average grant date fair value per option was estimated
at $4.61 using a Black-Scholes options pricing model. Key assumptions used
in the valuation included expected volatility of 25.4% based on historical
selected peer data, a weighted average expected term of 5.7 years as
determined by the simplified method, an expected dividend yield of 2.44%
based on Holdings' expected annualized dividend, and a risk-free interest
rate of 2.83%. The total fair value of these options of approximately $4
million will be charged to expense over the shorter of the vesting period or
the period up to the date at which the participant becomes retirement
eligible but not prior to March 1, 2019. In 2018, the Company recognized
expense associated with the June 11, 2018 option grant of approximately $2
million.
Holdings Performance Shares
On May 17, 2018, Holdings granted 0.4 million unearned Holdings performance
shares to Company employees, subject to performance conditions and a
cliff-vesting term ending March 1, 2021. The performance shares consist of
two distinct tranches; one based on the Company's return-on-equity targets
(the "ROE Performance Shares") and the other based on the Holdings' relative
total shareholder return targets (the "TSR Performance Shares"), each
comprising approximately one-half of the award. Participants may receive
from 0% to 200% of the unearned performance shares granted. The grant-date
fair value of the ROE Performance Shares will be established once the 2019
and 2020 Non-GAAP ROE target are determined and approved.
The grant-date fair value of the TSR Performance Shares was measured
at $23.17 using a Monte Carlo approach. Under the Monte Carlo approach,
stock returns were simulated for Holdings and the selected peer companies to
estimate the payout percentages established by the conditions of the award.
The resulting $4 million aggregate grant-date fair value of the unearned TSR
Performance Shares will be recognized as compensation expense over the
shorter of the cliff-vesting period or the period up to the date at which
the participant becomes retirement eligible but not prior to March 1, 2019.
In 2018, the Company recognized expense associated with the TSR Performance
Share awards of approximately $2 million.
Prior Equity Award Grants and Settlements
Prior to adoption of the Omnibus Plan, Company employees were granted AXA
ordinary share options under the AXA Stock Option Plan for AXA Financial
Employees and Associates (the "Stock Option Plan"). There is no limitation
in the Stock Option Plan on the number of shares that may be issued pursuant
to option or other grants.
Employees were also granted AXA performance shares under the AXA
International Performance Shares Plan established for each year (the
"Performance Share Plan").
The fair values of these prior awards are measured at the grant date by
reference to the closing price of the AXA ordinary share, and the result, as
adjusted for achievement of performance targets and pre-vesting forfeitures,
generally is attributed over the shorter of the requisite service period,
the performance period, if any, or to the date at which retirement
eligibility is achieved and subsequent service no longer is required for
continued vesting of the award.
2017 PERFORMANCE SHARES GRANT
On June 21, 2017, under the terms of the Performance Share Plan, AXA awarded
approximately 1.7 million unearned performance shares to Company employees.
The extent to which 2017-2019 cumulative performance targets measuring the
performance of AXA and the Company are achieved will determine the number of
performance shares earned, which may vary between 0% and 130% of the number
of performance shares at stake. The performance shares earned during this
performance period will vest and be settled on the fourth anniversary of the
award date. The plan will settle in AXA ordinary shares to all participants.
In 2018 and 2017, the expense associated with the June 21, 2017 grant of
performance shares was approximately $4 million and $9 million, respectively.
2016 PERFORMANCE SHARES GRANT
On June 6, 2016, under the terms of the Performance Share Plan, AXA awarded
approximately 1.9 million unearned performance shares to Company employees
of AXA Equitable. The extent to which 2017-2019 cumulative performance
targets measuring the performance of AXA and the Company are achieved will
determine the number of performance shares earned, which may vary between 0%
and 130% of the number of performance shares at stake. The performance
shares earned during this performance period will vest and be settled on the
fourth anniversary of the award date. The plan will settle in AXA ordinary
shares to all participants. In 2018, 2017 and 2016, the expense associated
with the June 6, 2016 grant of performance shares was approximately $4
million, $4 million and $10 million, respectively.
F-66
SETTLEMENT OF 2014 GRANT IN 2017
On March 24, 2017, share distributions totaling of approximately $21 million
were made to active and former AXA Equitable employees in settlement of
2.3 million performance shares earned under the terms of the AXA Performance
Share Plan 2014.
OTHER GRANTS
Prior to the IPO, non-officer directors were granted restricted AXA ordinary
shares (prior to 2011, AXA ADRs) and unrestricted AXA ordinary shares (prior
to March 15, 2010, AXA ADRs) annually under The Equity Plan for Directors.
AXA restricted stock units ("AXA RSUs") were also granted to certain Company
executives. The AXA RSUs are phantom AXA ordinary shares that, once vested,
entitle the recipient to a cash payment based on the average closing price
of the AXA ordinary share over the twenty trading days immediately preceding
the vesting date.
Summary of Stock Option Activity
A summary of activity in the AXA and Holdings option plans during 2018
follows:
OPTIONS OUTSTANDING
-------------------------------------------------------------------------
EQH SHARES AXA ORDINARY SHARES AXA ADRS/(2)/
---------------------- --------------------------- ----------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER AVERAGE NUMBER AVERAGE NUMBER AVERAGE
OUTSTANDING EXERCISE OUTSTANDING EXERCISE OUTSTANDING EXERCISE
(IN 000'S) PRICE (IN 000'S) PRICE (IN 000'S) PRICE
----------- --------- ----------- -------------- ----------- ---------
Options Outstanding at January 1, 2018....... -- $ -- 3,653 (EURO) 17.36 20 $ 20.98
Options granted.............................. 869 $ 21.34 -- (EURO) -- -- $ --
Options exercised............................ -- $ -- (337) (EURO) 11.80 -- $ --
Options forfeited, net....................... (35) $ 21.34 -- (EURO) -- -- $ --
Options expired.............................. -- $ -- (707) (EURO) 17.45 (5) $ 35.25
----------- ----------- -----------
Options Outstanding at December 31, 2018..... 834 $ 21.34 2,609 (EURO) 18.20 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 2,383 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. 9.16 4.50 0.58
=========== =========== ===========
Options Exercisable at December 31, 2018..... -- $ -- 1,369 (EURO) 15.27 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 7,698 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. -- 2.45 0.58
=========== =========== ===========
|
/(1)/Aggregate intrinsic value, presented in thousands, is calculated as the
excess of the closing market price on December 31, 2018 of the
respective underlying shares over the strike prices of the option
awards. For awards with strike prices higher then market prices,
intrinsic value is shown as zero.
/(2)/AXA ordinary shares will be delivered to participants in lieu of AXA
ADRs at exercise or maturity.
F-67
For the purpose of estimating the fair value of stock option awards, the
Company applies the Black-Scholes model and attributes the result over the
requisite service period using the graded-vesting method. A Monte-Carlo
simulation approach was used to model the fair value of the conditional
vesting feature of the awards of options to purchase Holdings and AXA
ordinary shares. Shown below are the relevant input assumptions used to
derive the fair values of options awarded in 2018, 2017 and 2016,
respectively.
EQH Shares AXA Ordinary Shares/(1)/
------------ ------------------------
2018 2018 2017 2016
------------ ---- -------- ---------
Dividend yield............................... 2.44% NA 6.53% 6.49%
Expected volatility.......................... 25.40% NA 25.05% 26.6%
Risk-free interest rates..................... 2.83% NA 0.59% 0.33%
Expected life in years....................... 9.7 NA 8.8 8.1
Weighted average fair value per option at
grant date................................. $ 4.61 NA $ 2.01 $ 2.06
|
/(1)/There were no options to buy AXA Ordinary Shares awarded during 2018. As
such, the input assumptions for 2018 are not applicable.
As of December 31, 2018, approximately $1 million of unrecognized
compensation cost related to unvested stock option awards, net of estimated
pre-vesting forfeitures, is expected to be recognized by the Company over a
weighted average period of 2.2 years. As of December 31, 2018, approximately
$3 million of unrecognized compensation cost related to Holdings unvested
stock option awards, net of estimated pre-vesting forfeitures, is expected
to be recognized by the Company over a weighted average period of 0.8 years.
Options
The fair value of AXA stock options is calculated using the Black-Scholes
option pricing model. The expected AXA dividend yield is based on market
consensus. AXA share price volatility is estimated on the basis of implied
volatility, which is checked against an analysis of historical volatility to
ensure consistency. The risk-free interest rate is based on the Euro Swap
Rate curve for the appropriate term. The effect of expected early exercise
is taken into account through the use of an expected life assumption based
on historical data.
Restricted Awards
The market price of a Holdings share is used as the basis for the fair value
measure of a Holdings RSU. For purposes of determining compensation cost for
stock-settled Holdings RSUs, fair value is fixed at the grant date until
settlement, absent modification to the terms of the award.
For 2018, 2017 and 2016, respectively, the Company recognized compensation
costs of $16 million, $2 million and $0 million for outstanding restricted
stock and AXA RSUs. The fair values of awards made under these programs are
measured at the grant date by reference to the closing price of the
unrestricted shares, and the result generally is attributed over the shorter
of the requisite service period, the performance period, if any, or to the
date at which retirement eligibility is achieved and subsequent service no
longer is required for continued vesting of the award. Remeasurements of
fair value for subsequent price changes until settlement are made only for
AXA RSUs. At December 31, 2018, approximately 2.3 million restricted
Holdings and AXA ordinary share awards remain unvested. Unrecognized
compensation cost related to these awards totaled approximately $19 million,
net of estimated pre-vesting forfeitures, and is expected to be recognized
over a weighted average period of 1.2 years.
The following table summarizes restricted Holdings share and AXA ordinary
share activity for 2018.
WEIGHTED WEIGHTED
SHARES OF HOLDINGS AVERAGE SHARES OF AXA AVERAGE
RESTRICTED STOCK GRANT DATE RESTRICTED STOCK GRANT DATE
(IN THOUSANDS) FAIR VALUE (IN THOUSANDS) FAIR VALUE
------------------ ------------- ---------------- ---------------
Unvested as of January 1, 2018............... -- $ -- 84 $ 21.07
Granted...................................... 1,696 $ 20.83 -- $ --
Cancelled.................................... 56 $ 21.21 -- $ 26.64
Vested....................................... 381 $ 21.09 36 $ 21.99
------------------ ------------- --------------- ---------------
Unvested as of December 31, 2018............. 1,259 $ 21.00 48 $ 20.38
================== ============= =============== ===============
|
Employee Stock Purchase Plans
AXA SHAREPLAN 2017
In 2017, eligible employees of AXA Equitable were offered the opportunity to
purchase newly issued AXA ordinary shares, subject to plan limits, under the
terms of AXA Shareplan, AXA's annual global stock purchase plan. Eligible
employees could have reserved a share purchase during the reservation period
from August 28, 2017 through September 8, 2017 and could have canceled their
reservation or elected to
F-68
make a purchase for the first time during the retraction/subscription period
from October 13, 2017 through October 17, 2017. The U.S. dollar purchase
price was determined by applying the U.S. dollar/Euro forward exchange rate
on October 11, 2017 to the discounted formula subscription price in Euros.
Investment Option A permitted participants to purchase AXA ordinary shares
at a 20% formula discounted price of (Euro)20.19 per share. Investment
Option B permitted participants to purchase AXA ordinary shares at an 8.98%
formula discounted price of (Euro)22.96 per share on a leveraged basis with
a guaranteed return of initial investment plus a portion of any appreciation
in the undiscounted value of the total shares purchased. For purposes of
determining the amount of any appreciation, the AXA ordinary share price
will be measured over a fifty-two week period preceding the scheduled end
date of AXA Shareplan 2018, which is July 1, 2022. All subscriptions became
binding and irrevocable on October 17, 2017.
The Company recognized compensation expense of $9 million and $14 million in
the years ended December 31, 2017 and 2016 respectively, in connection with
each respective year's offering of AXA stock under the AXA Shareplan,
representing the aggregate discount provided to AXA Equitable participants
for their purchase of AXA stock under each of those plans, as adjusted for
the post-vesting, five-year holding period. AXA Equitable participants in
AXA Shareplan 2017 and 2016 primarily invested under Investment Option B for
the purchase of approximately of 4 million and 6 million AXA ordinary
shares, respectively.
HOLDINGS STOCK PURCHASE PLAN
During 2018, Holdings introduced the AXA Equitable Holdings, Inc. Stock
Purchase Program ("SPP"). Participants are able to contribute up to 100% of
their eligible compensation and receive a matching contribution in cash
equal to 15% of their payroll contribution, which will be used to purchase
Holdings shares. Purchases will be made on the last trading day of each
month at the prevailing market rate.
15)INCOME TAXES
A summary of the income tax (expense) benefit in the consolidated statements
of income (loss) follows:
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Income tax (expense) benefit:
Current (expense) benefit........................... $ 234 $ (6) $ (274)
Deferred (expense) benefit.......................... 212 1,216 438
------ -------- ------
Total................................................. $ 446 $ 1,210 $ 164
====== ======== ======
|
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
income taxes and noncontrolling interest by the expected Federal income tax
rate of 21%, 35% and 35% for 2018, 2017 and 2016, respectively. The sources
of the difference and their tax effects are as follows:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Expected income tax (expense) benefit................ $ 311 $ (542) $ 14
Noncontrolling interest.............................. (1) -- --
Non-taxable investment income (loss)................. 104 241 173
Tax audit interest................................... (11) (6) (14)
State income taxes................................... (1) (3) (6)
Tax settlements/uncertain tax position release....... -- 221 --
Change in tax law.................................... 46 1,308 --
Other................................................ (2) (9) (3)
------ -------- ------
Income tax (expense) benefit......................... $ 446 $ 1,210 $ 164
====== ======== ======
|
The Tax Cuts and Jobs Act (the "Tax Reform Act") was enacted on December 22,
2017. The SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to
address the application of U.S. GAAP in situations where a company does not
have the necessary information available to complete its accounting for
certain income tax effects of the Tax Reform Act. In accordance with SAB
118, the Company determined reasonable estimates for certain effects of the
Tax Reform Act and recorded those estimates as provisional amounts in the
2017 financial statements. The accounting for the income tax effects of the
Tax Reform Act has been completed.
F-69
The components of change in tax law are as follows:
. An income tax expense of $4 million from the revaluation of deferred tax
assets and liabilities that existed at the time of enactment. The
calculation of cumulative temporary differences has been refined.
. An income tax expense of $13 million related to the decrease in federal
tax benefit allowable for audit interest as a result of lower corporate
tax rates.
. An income tax benefit of $20 million to reverse the sequestration fee
applied to a portion of accumulated minimum tax credits in the 2017
financial statements. The Internal Revenue Service has since clarified
that refundable minimum tax credits are not subject to sequestration.
. During the fourth quarter of 2018, the Company adopted the Internal
Revenue Service's directive related to the calculation of tax reserves
for variable annuity contracts. As a result of adoption of the
directive, the Company released audit interest accrued for uncertainties
in the calculation of variable annuity tax reserves. The impact on the
Company's financial statements was a benefit of $43 million.
During the second quarter of 2017, the Company agreed to the Internal
Revenue Service's Revenue Agent's Report for its consolidated 2008 and 2009
Federal corporate income tax returns. The impact on the Company's financial
statements and unrecognized tax benefits was a tax benefit of $221 million.
The components of the net deferred income taxes are as follows:
AS OF DECEMBER 31,
-------------------------------------------------------
2018 2017
------------------------- -----------------------------
ASSETS LIABILITIES Assets Liabilities
----------- ------------- ------------- ---------------
(IN MILLIONS)
Compensation and related benefits...................... $ 47 $ -- $ 47 $ --
Net operating loss..................................... 239 -- -- --
Reserves and reinsurance............................... -- 32 -- 83
DAC.................................................... -- 864 -- 821
Unrealized investment gains (losses)................... 123 -- -- 298
Investments............................................ 670 -- -- 997
Tax credits............................................ 314 -- 387 --
Other.................................................. 14 -- 67 --
----------- ------------- ------------- ---------------
Total.................................................. $ 1,407 $ 896 $ 501 $ 2,199
=========== ============= ============= ===============
|
The Company had $314 million and $387 million of AMT credits for the years
ended December 31, 2018 and 2017, respectively, which are expected to be
refunded or utilized against future taxable income.
A reconciliation of unrecognized tax benefits (excluding interest and
penalties) follows:
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
Balance at January 1,.......................... $ 205 $ 444 $ 406
Additions for tax positions of prior years..... 98 28 38
Reductions for tax positions of prior years.... (30) (234) --
Settlements with tax authorities............... -- (33) --
---------- ---------- ----------
Balance at December 31,........................ $ 273 $ 205 $ 444
========== ========== ==========
Unrecognized tax benefits that, if recognized,
would impact the effective rate.............. $ 202 $ 172 $ 329
========== ========== ==========
|
The Company recognizes accrued interest and penalties related to
unrecognized tax benefits in tax expense. Interest and penalties included in
the amounts of unrecognized tax benefits at December 31, 2018 and 2017 were
$41 million and $23 million, respectively. For 2018, 2017 and 2016,
respectively, there were $18 million, $(44) million and $15 million in
interest expense (benefit) related to unrecognized tax benefits.
It is reasonably possible that the total amount of unrecognized tax benefits
will change within the next 12 months due to the conclusion of IRS
proceedings and the addition of new issues for open tax years. The possible
change in the amount of unrecognized tax benefits cannot be estimated at
this time.
As of December 31, 2018, tax years 2010 and subsequent remain subject to
examination by the IRS.
F-70
16)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
AOCI represents cumulative gains (losses) on items that are not reflected in
income (loss). The balances for the past three years follow:
DECEMBER 31,
-------------------------------
2018 2017 2016
---------- --------- --------
(IN MILLIONS)
Unrealized gains (losses) on investments/(1)/ $ (484) $ 581 $ (44)
Defined benefit pension plans/(2)/........... (7) (51) (46)
---------- --------- --------
Total accumulated other comprehensive income
(loss) from continuing operations.......... (491) 530 (90)
---------- --------- --------
Less: Accumulated other comprehensive
(income) loss attributable to
non-controlling interest................... -- 68 86
---------- --------- --------
Accumulated other comprehensive income
(loss) attributable to AXA Equitable....... $ (491) $ 598 $ (4)
========== ========= ========
|
/(1)/2018 includes a $86 million decrease to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
/(2)/2018 includes a $3 million increase to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
The components of OCI for the years ended December 31, 2018, 2017 and 2016,
net of tax, follow:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
---------- -------- ---------
(IN MILLIONS)
Change in net unrealized gains (losses)
on investments:
Net unrealized gains (losses) arising during
the year..................................... $ (1,663) $ 782 $ (178)
(Gains) losses reclassified into net income
(loss) during the year/(1)/.................. (4) 8 2
---------- -------- ---------
Net unrealized gains (losses) on investments.... (1,667) 790 (176)
Adjustments for policyholders' liabilities,
DAC, insurance liability loss recognition
and other..................................... 437 (165) (57)
---------- -------- ---------
Change in unrealized gains (losses), net of
adjustments (net of deferred income tax
expense (benefit) of $(310), $244, and $(97)). (1,230) 625 (233)
---------- -------- ---------
Change in defined benefit plans:
Less: Reclassification adjustments to Net
income (loss) for:/(2)/
Amortization of net (gains) losses included
in net periodic cost....................... (4) (5) (3)
---------- -------- ---------
Change in defined benefit plans (net of
deferred income tax expense (benefit) of $0,
$(2) and $(2))................................ (4) (5) (3)
---------- -------- ---------
Total other comprehensive income (loss), net of
income taxes from continuing operations....... (1,234) 620 (236)
Other comprehensive income (loss) from
discontinued operations, net of income taxes.. -- (18) 17
---------- -------- ---------
Other comprehensive income (loss) attributable
to AXA Equitable.............................. $ (1,234) $ 602 $ (219)
========== ======== =========
|
/(1)/See "Reclassification adjustments" in Note 3. Reclassification amounts
presented net of income tax expense (benefit) of $(1) million, $(5)
million and $(1) million for the years ended December 31, 2018, 2017 and
2016, respectively.
/(2)/These AOCI components are included in the computation of net periodic
costs (see "Employee Benefit Plans" in Note 13). Reclassification
amounts presented net of income tax expense (benefit) of $0 million, $2
million and $2 million for the years ended December 31, 2018, 2017 and
2016, respectively.
Investment gains and losses reclassified from AOCI to net income (loss)
primarily consist of realized gains (losses) on sales and OTTI of AFS
securities and are included in Total investment gains (losses), net on the
consolidated statements of income (loss). Amounts reclassified from AOCI to
Net income (loss) as related to defined benefit plans primarily consist of
amortizations of net (gains) losses and net prior service cost (credit)
recognized as a component of net periodic cost and reported in Compensation
and benefit expenses in the consolidated statements of income (loss).
Amounts presented in the table above are net of tax.
F-71
17)COMMITMENTS AND CONTINGENT LIABILITIES
Litigation
Litigation, regulatory and other loss contingencies arise in the ordinary
course of the Company's activities as a diversified financial services firm.
The Company is a defendant in a number of litigation matters arising from
the conduct of its business. In some of these matters, claimants seek to
recover very large or indeterminate amounts, including compensatory,
punitive, treble and exemplary damages. Modern pleading practice in the U.S.
permits considerable variation in the assertion of monetary damages and
other relief. Claimants are not always required to specify the monetary
damages they seek or they may be required only to state an amount sufficient
to meet a court's jurisdictional requirements. Moreover, some jurisdictions
allow claimants to allege monetary damages that far exceed any reasonably
possible verdict. The variability in pleading requirements and past
experience demonstrates that the monetary and other relief that may be
requested in a lawsuit or claim often bears little relevance to the merits
or potential value of a claim. Litigation against the Company includes a
variety of claims including, among other things, insurers' sales practices,
alleged agent misconduct, alleged failure to properly supervise agents,
contract administration, product design, features and accompanying
disclosure, cost of insurance increases, the use of captive reinsurers,
payments of death benefits and the reporting and escheatment of unclaimed
property, alleged breach of fiduciary duties, alleged mismanagement of
client funds and other matters.
As with other financial services companies, the Company periodically
receives informal and formal requests for information from various state and
federal governmental agencies and self-regulatory organizations in
connection with inquiries and investigations of the products and practices
of the Company or the financial services industry. It is the practice of the
Company to cooperate fully in these matters.
The outcome of a litigation or regulatory matter is difficult to predict and
the amount or range of potential losses associated with these or other loss
contingencies requires significant management judgment. It is not possible
to predict the ultimate outcome or to provide reasonably possible losses or
ranges of losses for all pending regulatory matters, litigation and other
loss contingencies. While it is possible that an adverse outcome in certain
cases could have a material adverse effect upon the Company's financial
position, based on information currently known, management believes that
neither the outcome of pending litigation and regulatory matters, nor
potential liabilities associated with other loss contingencies, are likely
to have such an effect. However, given the large and indeterminate amounts
sought in certain litigation and the inherent unpredictability of all such
matters, it is possible that an adverse outcome in certain of the Company's
litigation or regulatory matters, or liabilities arising from other loss
contingencies, could, from time to time, have a material adverse effect upon
the Company's results of operations or cash flows in a particular quarterly
or annual period.
For some matters, the Company is able to estimate a possible range of loss.
For such matters in which a loss is probable, an accrual has been made. For
matters where the Company, however, believes a loss is reasonably possible,
but not probable, no accrual is required. For matters for which an accrual
has been made, but there remains a reasonably possible range of loss in
excess of the amounts accrued or for matters where no accrual is required,
the Company develops an estimate of the unaccrued amounts of the reasonably
possible range of losses. As of December 31, 2018, the Company estimates the
aggregate range of reasonably possible losses, in excess of any amounts
accrued for these matters as of such date to be up to approximately $95
million.
For other matters, the Company is currently not able to estimate the
reasonably possible loss or range of loss. The Company is often unable to
estimate the possible loss or range of loss until developments in such
matters have provided sufficient information to support an assessment of the
range of possible loss, such as quantification of a damage demand from
plaintiffs, discovery from plaintiffs and other parties, investigation of
factual allegations, rulings by a court on motions or appeals, analysis by
experts and the progress of settlement discussions. On a quarterly and
annual basis, the Company reviews relevant information with respect to
litigation and regulatory contingencies and updates the Company's accruals,
disclosures and reasonably possible losses or ranges of loss based on such
reviews.
In August 2015, a lawsuit was filed in Connecticut Superior Court, Judicial
Division of New Haven entitled Richard T. O'Donnell, on behalf of himself
and all others similarly situated v. AXA Equitable Life Insurance Company.
This lawsuit is a putative class action on behalf of all persons who
purchased variable annuities from AXA Equitable, which were subsequently
subjected to the volatility management strategy and who suffered injury as a
result thereof. Plaintiff asserts a claim for breach of contract alleging
that AXA Equitable Life implemented the volatility management strategy in
violation of applicable law. In November 2015, the Connecticut Federal
District Court transferred this action to the United States District Court
for the Southern District of New York. In March 2017, the Southern District
of New York granted AXA Equitable Life's motion to dismiss the complaint. In
April 2017, the plaintiff filed a notice of appeal. In April 2018, the
United States Court of Appeals for the Second Circuit reversed the trial
court's decision with instructions to remand the case to Connecticut state
court. In September 2018, the Second Circuit issued its mandate, following
AXA Equitable Life's notification to the court that it would not file a
petition for writ of certiorari. The case was transferred in December 2018
and is pending in Connecticut Superior Court, Judicial District of Stamford.
We are vigorously defending this matter.
In February 2016, a lawsuit was filed in the United States District Court
for the Southern District of New York entitled Brach Family Foundation, Inc.
v. AXA Equitable Life Insurance Company. This lawsuit is a putative class
action brought on behalf of all owners of universal life ("UL") policies
subject to AXA Equitable Life's COI rate increase. In early 2016, AXA
Equitable Life raised COI rates for certain UL policies issued
F-72
between 2004 and 2007, which had both issue ages 70 and above and a current
face value amount of $1 million and above. A second putative class action
was filed in Arizona in 2017 and consolidated with the Brach matter. The
current consolidated amended class action complaint alleges the following
claims: breach of contract; misrepresentations by AXA Equitable Life in
violation of Section 4226 of the New York Insurance Law; violations of New
York General Business Law Section 349; and violations of the California
Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs
seek; (a) compensatory damages, costs, and, pre- and post-judgment interest;
(b) with respect to their claim concerning Section 4226, a penalty in the
amount of premiums paid by the plaintiffs and the putative class; and
(c) injunctive relief and attorneys' fees in connection with their statutory
claims. Five other federal actions challenging the COI rate increase are
also pending against AXA Equitable and have been coordinated with the Brach
action for the purposes of pre-trial activities. They contain allegations
similar to those in the Brach action as well as additional allegations for
violations of various states' consumer protection statutes and common law
fraud. Two actions are also pending against AXA Equitable in New York state
court. AXA Equitable is vigorously defending each of these matters.
Leases
The Company has entered into operating leases for office space and certain
other assets, principally information technology equipment and office
furniture and equipment. Future minimum payments under non-cancelable
operating leases for 2019 and the four successive years are $81 million, $74
million, $69 million, $67 million, $63 million and $66 million thereafter.
Minimum future sublease rental income on these non-cancelable operating
leases for 2019 and the four successive years is $12 million, $12 million,
$12 million, $12 million, $12 million and $0 million thereafter.
Rent expense, which is amortized on a straight-line basis over the life of
the lease, was $82 million, $78 million, $72 million, respectively, for the
years ended December 31, 2018, 2017 and 2016, net of sublease income of $12
million, $16 million, $13 million, respectively, for the years ended
December 31, 2018, 2017 and 2016.
Obligations under Funding Agreements
Entering into FHLBNY membership, borrowings and funding agreements requires
the ownership of FHLBNY stock and the pledge of assets as collateral. AXA
Equitable has purchased FHLBNY stock of $190 million and pledged collateral
with a carrying value of $6.1 billion, as of December 31, 2018. AXA
Equitable issues short-term funding agreements to the FHLBNY and uses the
funds for asset liability and cash management purposes. AXA Equitable issues
long-term funding agreements to the FHLBNY and uses the funds for spread
lending purposes. Funding agreements are reported in Policyholders' account
balances in the consolidated balance sheets. For other instruments used for
asset/liability and cash management purposes, see "Derivative and offsetting
assets and liabilities" included in Note 3. The table below summarizes the
Company's activity of funding agreements with the FHLBNY.
OUTSTANDING REPAID
BALANCE AT END MATURITY OF ISSUED DURING DURING THE
OF PERIOD OUTSTANDING BALANCE THE PERIOD PERIOD
-------------- ------------------------ ------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Short-term FHLBNY funding agreements......... $ 1,490 Less than one month $ 7,980 $ 6,990
Long-term FHLBNY funding agreements.......... 1,621 Less than four years -- --
98 Less than five years -- --
781 Greater than five years -- --
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 -- --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2018/(1)/..................... $ 3,990 $ 7,980 $ 6,990
============== ============= ==========
December 31, 2017:
Short-term FHLBNY funding agreements......... $ 500 Less than one month $ 6,000 $ 6,000
Long-term FHLBNY funding agreements.......... 1,244 Less than four years 324
377 Less than five years 303
879 Greater than five years 135
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 762 $ --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2017/(1)/..................... $ 3,000 $ 6,762 $ 6,000
============== ============= ==========
|
/(1)/The $11 million and $14 million difference between the funding
agreements carrying value shown in fair value table for 2018 and 2017,
respectively, reflects the remaining amortization of a hedge implemented
and closed, which locked in the funding agreements borrowing rates.
F-73
Guarantees and Other Commitments
The Company provides certain guarantees or commitments to affiliates and
others. At December 31, 2018, these arrangements include commitments by the
Company to provide equity financing of $927 million (including $280 million
with affiliates and $12 million on consolidated VIEs) to certain limited
partnerships and real estate joint ventures under certain conditions.
Management believes the Company will not incur material losses as a result
of these commitments.
AXA Equitable is the obligor under certain structured settlement agreements
it had entered into with unaffiliated insurance companies and beneficiaries.
To satisfy its obligations under these agreements, AXA Equitable owns single
premium annuities issued by previously wholly owned life insurance
subsidiaries. AXA Equitable has directed payment under these annuities to be
made directly to the beneficiaries under the structured settlement
agreements. A contingent liability exists with respect to these agreements
should the previously wholly owned subsidiaries be unable to meet their
obligations. Management believes the need for AXA Equitable to satisfy those
obligations is remote.
The Company had $18 million of undrawn letters of credit related to
reinsurance at December 31, 2018. The Company had $606 million of
commitments under existing mortgage loan agreements at December 31, 2018.
Pursuant to certain assumption agreements (the "Assumption Agreements"), AXA
Financial legally assumed primary liability from AXA Equitable for all
current and future liabilities of AXA Equitable under certain employee
benefit plans that provide participants with medical, life insurance and
deferred compensation benefits as well as under the AXA Equitable Retirement
plan, a frozen qualified pension plan. AXA Equitable remains secondarily
liable for its obligations under these plans and would recognize such
liabilities in the event AXA Financial does not perform under the terms of
the Assumption Agreements. On October 1, 2018, AXA Financial merged with and
into its direct parent, Holdings, with Holdings continuing as the surviving
entity. See Note 1 for further information.
18)INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
For 2018, 2017 and 2016, respectively, AXA Equitable's statutory net income
(loss) totaled $3,120 million, $748 million and $679 million. Statutory
surplus, Capital stock and Asset Valuation Reserve ("AVR") totaled $7.9
billion and $8.7 billion at December 31, 2018 and 2017, respectively. At
December 31, 2018, AXA Equitable, in accordance with various government and
state regulations, had $55 million of securities on deposit with such
government or state agencies.
In 2018, AXA Equitable Life paid to its direct parent which subsequently
distributed such amount to Holdings an ordinary shareholder dividend of $1.1
billion. Also in 2018, AXA Equitable Life transferred its interests in ABLP,
AB Holding and the General Partner to Alpha Units Holdings, Inc., a newly
formed subsidiary, and distributed the shares of that subsidiary to its
direct parent which subsequently distributed such shares to Holdings (the
"AB Ownership Transfer"). The AB Ownership transfer was considered an
extraordinary dividend of $1.7 billion representing the equity value of
Alpha Units Holdings, Inc. In connection with the AB Ownership Transfer, AXA
Equitable Life paid an extraordinary cash dividend of $572 million and
issued a surplus note to Holdings in the same amount. The surplus note was
repaid on March 5, 2019.
In 2017, AXA Equitable Life did not pay shareholder dividends and in 2016,
AXA Equitable paid $1.1 billion in shareholder dividends.
Dividend Restrictions
As a domestic insurance subsidiary regulated by the insurance laws of New
York State, AXA Equitable Life, is subject to restrictions as to the amounts
permitted to be paid as dividends and the amounts of any outstanding surplus
notes permitted to be repaid to Holdings.
New York State insurance law provides that a stock life insurer may not,
without prior approval of the New York State Department of Financial
Services ("NYDFS"), pay a dividend to its stockholders exceeding an amount
calculated under one of two standards (the "Standards"). The first standard
allows payment of an ordinary dividend out of the insurer's earned surplus
(as reported on the insurer's most recent annual statement) up to a limit
calculated pursuant to a statutory formula, provided that the NYDFS is given
notice and opportunity to disapprove the dividend if certain qualitative
tests are not met (the "Earned Surplus Standard"). The second standard
allows payment of an ordinary dividend up to a limit calculated pursuant to
a different statutory formula without regard to the insurer's earned
surplus. Dividends exceeding these prescribed limits require the insurer to
file a notice of its intent to declare the dividends with the NYDFS and
prior approval or non-disapproval from the NYDFS.
In applying the Standards, AXA Equitable Life could pay ordinary dividends
up to approximately $1.0 billion during 2019 or, if the amount under the
Earned Surplus Standard was limited to the amount of AXA Equitable Life's
positive unassigned funds as reported on its 2019 annual statement, $2.1
billion. However, in connection with the AB Ownership Transfer, AXA
Equitable Life agreed with the NYDFS that it would not seek a dividend of
greater than $1.0 billion under the Earned Surplus Standard during 2019.
F-74
Prescribed and Permitted Accounting Practices
At December 31, 2018 and for the year then ended, there were no differences
in net income (loss) and capital and surplus resulting from practices
prescribed and permitted by NYDFS and those prescribed by NAIC Accounting
Practices and Procedures effective at December 31, 2018.
The Company cedes a portion of their statutory reserves to EQ AZ Life Re, a
captive reinsurer, as part of the Company's capital management strategy. EQ
AZ Life Re prepares financial statements in a special purpose framework for
statutory reporting.
Differences between Statutory Accounting Principles and U.S. GAAP
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from U.S. GAAP. The differences between statutory surplus and
capital stock determined in accordance with Statutory Accounting Principles
("SAP") and total equity under GAAP are primarily: (a) the inclusion in SAP
of an AVR intended to stabilize surplus from fluctuations in the value of
the investment portfolio; (b) future policy benefits and policyholders'
account balances under SAP differ from U.S. GAAP due to differences between
actuarial assumptions and reserving methodologies; (c) certain policy
acquisition costs are expensed under SAP but deferred under U.S. GAAP and
amortized over future periods to achieve a matching of revenues and
expenses; (d) under SAP, Federal income taxes are provided on the basis of
amounts currently payable with limited recognition of deferred tax assets
while under U.S. GAAP, deferred taxes are recorded for temporary differences
between the financial statements and tax basis of assets and liabilities
where the probability of realization is reasonably assured; (e) the
valuation of assets under SAP and U.S. GAAP differ due to different
investment valuation and depreciation methodologies, as well as the deferral
of interest-related realized capital gains and losses on fixed income
investments; (f) the valuation of the investment in AB and AB Holding under
SAP reflected a portion of the market value appreciation rather than the
equity in the underlying net assets as required under U.S. GAAP;
(g) reporting the surplus notes as a component of surplus in SAP but as a
liability in U.S. GAAP; (h) computer software development costs are
capitalized under U.S. GAAP but expensed under SAP; (i) certain assets,
primarily prepaid assets, are not admissible under SAP but are admissible
under U.S. GAAP, (j) the fair valuing of all acquired assets and liabilities
including intangible assets are required for U.S. GAAP purchase accounting
and (k) cost of reinsurance which is recognized as expense under SAP and
amortized over the life of the underlying reinsured policies under U.S. GAAP.
19)DISCONTINUED OPERATIONS
Distribution of AllianceBernstein to Holdings
Effective December 31, 2018, the Company and its subsidiaries transferred
all economic interests in the business of AB to a newly created entity,
Alpha Unit Holdings, LLC ("Alpha"). The Company distributed all equity
interests in Alpha to AXA Equitable Financial Services, LLC, a wholly-owned
subsidiary of Holdings. The AB transfer and subsequent distribution of Alpha
equity interests ("the AB Business Transfer") removed the authority to
control the business of AB and as such AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements
in all periods presented. Prior to the fourth quarter of 2018, the Company
reported the operations of AB as its Investment Management and Research
segment.
In connection with the transfer, the Company paid an extraordinary dividend
in cash to Holdings in the amount of $572 million. The Company also issued a
one-year senior surplus note to Holdings for $572 million that was repaid on
March 5, 2019. See Note 12 for details of the senior surplus note.
Transactions Prior to Distribution
Intercompany transactions prior to the AB Business Transfer between the
Company and AB were eliminated and excluded from the consolidated statements
of income (loss) and consolidated balance sheets.
The table below presents AB's revenues recognized in 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Investment management, advisory and service
fees:
Base fees.................................. $ 2,156 $ 2,025 $ 1,809
Performance-based fees..................... 118 95 33
Research services.......................... 439 450 480
Distribution services...................... 419 412 384
|
F-75
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Other revenues:
Shareholder services....................... $ 76 $ 75 $ 78
Other...................................... 35 42 21
--------- --------- ---------
Total investment management and service fees. $ 3,243 $ 3,099 $ 2,804
========= ========= =========
|
Transactions Ongoing after Distribution
After the AB Business Transfer, services provided by AB will consist
primarily of an investment management service agreement and will be included
in investment expenses and identified as a related party transaction.
Discontinued Operations
The following table presents the amounts related to the Net income (loss) of
AB that has been reflected in Discontinued operations:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
REVENUES
Net derivative gains (losses)................ $ 12 $ (24) $ (16)
Net investment income (loss)................. 24 142 150
Investment gains (losses), net:
Other investment gains (losses), net....... -- -- (2)
--------- --------- ---------
Total investment gains (losses), net...... -- -- (2)
--------- --------- ---------
Investment management and service fees....... 3,243 3,099 2,804
--------- --------- ---------
Total revenues............................ 3,279 3,217 2,936
--------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Compensation and benefits.................... 1,370 1,307 1,231
Commissions and distribution related payments 427 415 372
Interest expense............................. 8 6 3
Other operating costs and expenses........... 727 789 699
--------- --------- ---------
Total benefits and other deductions....... 2,532 2,517 2,305
--------- --------- ---------
Income (loss) from discontinued operations,
before income taxes........................ 747 700 631
Income tax (expense) benefit................. (69) (82) (69)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes................... 678 618 562
Less: Net (income) loss attributable to the
noncontrolling interest.................... (564) (533) (496)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes and
noncontrolling interest.................... $ 114 $ 85 $ 66
========= ========= =========
|
F-76
The following table presents the amounts related to the financial position
of AB as of December 31, 2017. As the Company deconsolidated AB effective
December 31, 2018, amounts related to AB's financial position as of
December 31, 2018 are not included in the Company's consolidated balance
sheet as of that date. The amounts as of December 31, 2017 have been
reflected in either the Assets of disposed subsidiary or Liabilities of
disposed subsidiary, as applicable, in the Company's consolidated balance
sheet:
ASSETS AND LIABILITIES OF DISPOSED SUBSIDIARY
AS OF DECEMBER 31, 2017
------------------------
(IN MILLIONS)
ASSETS
Investments:
Other equity investments............................. $ 87
Trading securities, at fair value.................... 351
Other invested assets................................ 1,291
------------------------
Total investments................................... 1,729
Cash and cash equivalents.............................. 1,009
Cash and securities segregated, at fair value.......... 816
Broker-dealer related receivables...................... 2,158
Intangible assets, net................................. 3,709
Other assets........................................... 414
------------------------
TOTAL ASSETS OF DISPOSED SUBSIDIARY.................. $ 9,835
========================
LIABILITIES
Broker-dealer related payables......................... $ 334
Customer related payables.............................. 2,229
Long-term debt......................................... 566
Current and deferred income taxes...................... 404
Other liabilities...................................... 1,421
------------------------
TOTAL LIABILITIES OF DISPOSED SUBSIDIARY............. $ 4,954
------------------------
Redeemable noncontrolling interest of
disposed subsidiary.................................. 602
|
20)REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these misclassifications were
not material to the financial statements of any period. These have been
corrected in the comparative consolidated statements of cash flows for the
year ended December 31, 2017 contained elsewhere in this filing.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer in the fourth quarter of 2018, AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements.
The financial information for prior periods presented in the consolidated
financial statements have been adjusted to reflect AB as a discontinued
operation.
F-77
Consolidated Financial Statements as of and for the Year Ended December 31,
2017
The following tables present line items in the consolidated financial
statements as of and for the year ended December 31, 2017 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the 2017 Form 10-K. For these items, the
tables detail the amounts as previously reported, the impact upon those line
items due to the revisions, and the amounts as currently revised.
AS OF DECEMBER 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,547 $ -- $ 4,547 $ (55) $ 4,492
--------------- ------------ ----------- --------- -----------
Total Assets.............................. $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ 29,034 -- 29,034 36 29,070
Current and deferred taxes................. 1,973 (404) 1,569 (19) 1,550
--------------- ------------ ----------- --------- -----------
Total Liabilities......................... 205,795 -- 205,795 17 205,812
--------------- ------------ ----------- --------- -----------
EQUITY:
Retained Earnings.......................... 9,010 -- 9,010 (72) 8,938
--------------- ------------ ----------- --------- -----------
AXA Equitable Equity....................... 16,469 -- 16,469 (72) 16,397
--------------- ------------ ----------- --------- -----------
Total Equity............................... 19,564 -- 19,564 (72) 19,492
--------------- ------------ ----------- --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity........ $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------ ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 3,334 $ -- $ -- $ 3,334 $ (40) $ 3,294
Net derivative gains (losses).............. 890 -- 24 914 (20) 894
-------------- ----------- ------------ ----------- --------- ----------
Total revenues............................ 11,733 -- (3,217) 8,516 (60) 8,456
-------------- ----------- ------------ ----------- --------- ----------
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 3,462 -- -- 3,462 11 3,473
Interest credited to policyholder's
account balances.......................... 1,040 -- -- 1,040 (119) 921
Compensation and benefits.................. 1,762 (128) (1,307) 327 -- 327
Commissions and distribution
related payments.......................... 1,486 (443) (415) 628 -- 628
Amortization of deferred policy
acquisition costs......................... 268 578 -- 846 54 900
Other operating costs and expenses......... 1,431 (7) (789) 635 -- 635
-------------- ----------- ------------ ----------- --------- ----------
Total benefits and other deductions....... 9,478 -- (2,517) 6,961 (54) 6,907
|
F-78
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
Income (loss) from continuing operations, before
income taxes...................................... $ 2,255 $ -- $ (700) $ 1,555 $ (6) $ 1,549
Income tax (expense) benefit from
continuing operations............................. 1,139 -- (111) 1,028 182 1,210
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss) from continuing operations........ 3,394 -- (811) 2,583 176 2,759
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss)................................... 3,394 -- (533) 2,861 (17) 2,844
------------- ------------ ------------ ----------- ---------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO AXA EQUITABLE..... $ 2,860 $ -- $ -- $ 2,860 $ (17) $ 2,843
============= ============ ============ =========== ========== ==========
|
YEAR ENDED DECEMBER 31, 2017
--------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ------------- --------- -------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)............................ $ 3,394 $ (533) $ 2,861 $ (17) $ 2,844
Change in unrealized gains (losses), net of
reclassification adjustment................ 563 -- 563 21 584
Other comprehensive income................... 599 (18) 581 21 602
--------------- ------------ ------------- --------- -------------
Comprehensive income (loss).................. 3,993 (551) 3,442 4 3,446
--------------- ------------ ------------- --------- -------------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ 3,441 $ -- $ 3,441 $ 4 $ 3,445
=============== ============ ============= ========= =============
|
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year................. $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to AXA Equitable...... 2,860 -- 2,860 (17) 2,843
------------- ------------- ----------- --------- ----------
Retained earnings, end of period..................... 9,010 -- 9,010 (72) 8,938
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, beginning
of year............................................. 17 -- 17 (21) (4)
Other comprehensive income (loss).................... 581 -- 581 21 602
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, end of year.. 598 -- 598 -- 598
------------- ------------- ----------- --------- ----------
Total AXA Equitable's equity, end of year............ 16,469 -- 16,469 (72) 16,397
TOTAL EQUITY, END OF YEAR.............................. $ 19,564 $ -- $ 19,564 $ (72) $ 19,492
============= ============= =========== ========= ==========
|
F-79
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 3,394 $ -- $ (17) $ 3,377
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,040 -- (119) 921
Policy charges and fee income......................... (3,334) -- 40 (3,294)
Net derivative (gains) losses......................... (890) -- 20 (870)
Amortization and depreciation......................... (136) 907 54 825
Amortization of deferred sales commission............. 32 (32) -- --
Amortization of other intangibles..................... 31 (31) -- --
Equity (income) loss from limited partnerships........ -- (157) -- (157)
Distributions from joint ventures and
limited partnerships................................ 140 (140) -- --
Changes in:
Reinsurance recoverable............................. (416) -- (602) (1,018)
Deferred policy acquisition costs................... 268 (268) -- --
Capitalization of deferred policy
acquisition costs................................. -- (578) -- (578)
Future policy benefits.............................. 1,511 -- (322) 1,189
Current and deferred income taxes................... (664) -- (510) (1,174)
Other, net.......................................... 189 297 -- 486
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ 1,077 $ (2) $ (1,456) $ (381)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ $ -- $ 2,204 $ -- $ 2,204
Payment for the purchase/origination of:
Short-term investments................................ -- (2,456) -- (2,456)
Change in short-term investments....................... (264) 254 10 --
Other, net............................................. 238 -- 84 322
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (9,010) $ 2 $ 94 $ (8,914)
------------ ----------------- --------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.............................................. $ 9,882 $ -- $ (548) $ 9,334
Withdrawals........................................... (5,926) -- 2,000 (3,926)
Transfer (to) from Separate Accounts.................. 1,656 -- (90) 1,566
------------ ----------------- --------- -----------
Net cash provided by (used in) financing activities.... $ 8,370 $ -- $ 1,362 $ 9,732
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $533 million in 2017 of the discontinued
operations that are not included in net income (loss) in the
Consolidated Statements of Income (Loss).
Consolidated Financial Statements for the Year Ended December 31, 2016
The following table presents line items for the consolidated financial
statements for the year ended December 31, 2016 that have been affected by
the aforementioned adjustments and revisions. This information has been
corrected from the information previously presented and restated in the 2017
Form 10-K. For these items, the table details the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, adjustments for the discontinued
operation, and revisions and the amounts as currently revised.
F-80
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------- ------------ ----------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income......... $ 3,344 $ -- $ -- $ 3,344 $ (33) $ 3,311
Net derivative gains (losses)......... (1,211) -- 16 (1,195) (126) (1,321)
-------------- ----------- ------------- ------------ ----------- -----------
Total revenues....................... 9,138 -- (2,936) 6,202 (159) 6,043
BENEFITS AND OTHER DEDUCTIONS:
Interest credited to Policyholder's
account balances..................... 1,029 -- -- 1,029 (124) 905
Compensation and benefits............. 1,723 (128) (1,231) 364 -- 364
Commissions and distribution
related payments..................... 1,467 (460) (372) 635 -- 635
Amortization of deferred policy
acquisition costs.................... 52 594 -- 646 (4) 642
Other operating costs and expenses.... 1,458 (6) (699) 753 -- 753
-------------- ----------- ------------- ------------ ----------- -----------
Total benefits and other deductions.. 8,516 -- (2,305) 6,211 (128) 6,083
Income (loss) from continuing
operations, before income taxes....... 622 -- (631) (9) (31) (40)
Income tax (expense) benefit from
continuing operations................. 84 -- 69 153 11 164
Net income (loss) from
continuing operations................. 706 -- (562) 144 (20) 124
Net income (loss)....................... 706 -- (496) 210 (20) 190
-------------- ----------- ------------- ------------ ----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE......................... $ 210 $ -- $ -- $ 210 $ (20) $ 190
============== =========== ============= ============ =========== ===========
|
YEAR ENDED DECEMBER 31, 2016
-----------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- --------------- ------------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)...................................... $ 706 $ (496) $ 210 $ (20) $ 190
--------------- --------------- ------------- ---------- ----------
Change in unrealized gains (losses), net of
reclassification adjustment.......................... (194) -- (194) (21) (215)
Other comprehensive income............................. (215) 17 (198) (21) (219)
Comprehensive income (loss)............................ 491 (479) 12 (41) (29)
--------------- --------------- ------------- ---------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE........................................ $ 12 $ -- $ 12 $ (41) $ (29)
=============== =============== ============= ========== ==========
|
F-81
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year......... $ 6,990 $ -- $ 6,990 $ (35) $ 6,955
Net income (loss) attributable to
AXA Equitable............................... 210 -- 210 (20) 190
-------------- ------------ ----------- --------- -----------
Retained earnings, end of period............. 6,150 -- 6,150 (55) 6,095
-------------- ------------ ----------- --------- -----------
Other comprehensive income (loss)............ (198) -- (198) (21) (219)
-------------- ------------ ----------- --------- -----------
Accumulated other comprehensive income, end
of period................................... 17 -- 17 (21) (4)
-------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period.. $ 11,508 $ -- $ 11,508 $ (76) $ 11,432
============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2016
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 706 $ -- $ (20) $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,029 -- (124) 905
Policy charges and fee income......................... (3,344) -- 33 (3,311)
Net derivative (gains) losses......................... 1,211 -- 126 1,337
Amortization and depreciation......................... -- 618 (4) 614
Amortization of deferred sales commission............. 41 (41) -- --
Other depreciation and amortization................... (98) 98 -- --
Amortization of other intangibles..................... 29 (29) -- --
Equity (income) loss from limited partnerships........ -- (91) -- (91)
Return of real estate joint venture and
limited partnerships................................ 126 (126) -- --
Changes in:
Deferred policy acquisition costs................... 52 (52) -- --
Capitalization of deferred policy
acquisition costs................................. -- (594) -- (594)
Current and deferred income taxes................... (742) -- (11) (753)
Other, net.......................................... (161) 217 -- 56
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ (461) $ -- $ -- $ (461)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ -- 2,984 -- 2,984
Payment for the purchase/origination of:...............
Short-term investments................................ -- (3,187) -- (3,187)
Change in short-term investments....................... (205) 205 -- --
Other, net............................................. 409 (2) -- 407
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (5,358) $ -- $ -- $ (5,358)
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $496 million in 2016 of the discontinued
operations that are not included in Net income (loss) in the
Consolidated Statements of Income (Loss).
F-82
21)QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The unaudited quarterly financial information for the years ended
December 31, 2018 and 2017 are summarized in the table below:
THREE MONTHS ENDED
--------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
--------- ---------- ------------- ------------
(IN MILLIONS)
2018
Total revenues............................... $ 1,139 $ 1,621 $ 27 $ 4,164
Total benefits and other deductions.......... 1,512 4,278 763 1,879
--------- ---------- ------------- ------------
Net income (loss)............................ $ (264) $ (2,084) $ (509) $ 1,936
========= ========== ============= ============
2017
Total revenues............................... $ 1,554 $ 3,763 $ 1,621 $ 1,518
Total benefits and other deductions.......... 1,921 1,858 1,708 1,420
--------- ---------- ------------- ------------
Net income (loss)............................ $ (201) $ 1,508 $ 23 $ 1,515
========= ========== ============= ============
|
Net Income (Loss) Volatility
With the exception of the GMxB Unwind during the second quarter of 2018 that
is further described in Note 12, the fluctuation in the Company's quarterly
Net income (loss) during 2018 and 2017 is not due to any specific events or
transactions, but instead is driven primarily by the impact of changes in
market conditions on the Company's liabilities associated with GMxB features
embedded in its variable annuity products, partially offset by derivatives
the Company has in place to mitigate the movement in those liabilities. As
those derivatives do not qualify for hedge accounting treatment, volatility
in Net income (loss) result from the changes in value of the derivatives
being recognized in the period in which they occur, with offsetting changes
in the liabilities being partially recognized in the current period.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company revised the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Revisions of Prior Period Interim Consolidated Financial Statements
The Company's third quarter 2018 financial statements were revised to
reflect the correction of errors identified by the Company in its previously
issued financial statements. The impact of these errors was not considered
to be material. However, in order to improve the consistency and
comparability of the financial statements, management revised the Company's
consolidated financial statements for the three and six months ended
March 31, 2018 and June 30, 2018, respectively, as well as the three and six
months ended March 31, 2017 and June 30, 2017.
In addition, during the fourth quarter of 2018, the Company identified
certain cash flows that were incorrectly classified in the Company's
historical consolidated statements of cash flows. The Company has determined
that these mis-classifications were not material to the financial statements
for any period. These misclassifications will be corrected in the
comparative consolidated statements of cash flows for the three, six and
nine months ended March 31, 2019, June 30, 2019 and September 30, 2019 that
will appear in the Company's first, second and third quarter 2019 Form 10-Q
filings, respectively.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer effective as of December 31, 2018, AB's operations are now
reflected as Discontinued operations in the Company's consolidated financial
statements. The financial information for prior periods presented in the
consolidated financial statements have been adjusted to reflect AB as
Discontinued operations.
F-83
Revision of Consolidated Financial Statements as of and for the Three Months
Ended March 31, 2018
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 2018 that have
been affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... 4,826 -- 4,826 (119) 4,707
-------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,374 $ -- $ 28,374 $ (10) $ 28,364
Current and deferred taxes................. 1,728 (432) 1,296 (38) 1,258
Other liabilities.......................... 3,041 (1,941) 1,100 70 1,170
-------------- -------------- ----------- --------- -----------
Total Liabilities.......................... $ 202,767 $ -- $ 202,767 $ 22 $ 202,789
-------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 8,824 $ -- $ 8,824 $ (141) $ 8,683
AXA Equitable Equity....................... 15,545 -- 15,545 (141) 15,404
-------------- -------------- ----------- --------- -----------
Total Equity............................... 18,633 -- 18,633 (141) 18,492
-------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ------------ ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 869 $ -- $ -- $ 869 $ (8) $ 861
Net derivative gains (losses).............. (777) -- (2) (779) (38) (817)
------------- ------------ ------------ ------------ ---------- ----------
Total Revenues........................... 2,031 -- (846) 1,185 (46) 1,139
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 489 -- -- 489 (9) 480
Interest credited to policyholders'
account balances......................... 338 -- -- 338 (83) 255
Compensation and benefits.................. 456 (33) (344) 79 70 149
Commissions and distribution
related payments......................... 371 (101) (110) 160 -- 160
Amortization of deferred policy
acquisition costs........................ 10 135 -- 145 64 209
Other operating costs and expenses......... 440 (1) (189) 250 -- 250
------------- ------------ ------------ ------------ ---------- ----------
Total benefits and other deductions...... 2,115 -- (645) 1,470 42 1,512
------------- ------------ ------------ ------------ ---------- ----------
|
F-84
THREE MONTHS ENDED MARCH 31, 2018
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- ----------
(IN MILLIONS)
Income (loss) from continuing operations,
before income taxes....................... $ (84) $ -- $ (201) $ (285) (88) (373)
Income tax (expense) benefit from
continuing operations..................... 44 -- 17 61 19 80
------------ ---------- ----------- ----------- -------- ----------
Net income (loss) from
continuing operations..................... (40) -- (184) (224) (69) (293)
------------ ---------- ----------- ----------- -------- ----------
Net income (loss).......................... (40) -- (155) (195) (69) (264)
------------ ---------- ----------- ----------- -------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE............................. $ (194) $ -- $ -- $ (194) $ (69) $ (263)
============ ========== =========== =========== ======== ==========
|
THREE MONTHS ENDED MARCH 31, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- ----------
(IN MILLIONS)
STATEMENTS OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)............................. $ (40) $ (155) $ (195) $ (69) $ (264)
------------- ------------ ----------- --------- ----------
Comprehensive income (loss)................... $ (789) $ (162) $ (951) $ (69) $ (1,020)
------------- ------------ ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE................................ $ (950) $ -- $ (950) $ (69) $ (1,019)
============= ============ =========== ========= ==========
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year.......... $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
------------- ------------ ----------- --------- ----------
Net income (loss)............................. (194) -- (194) (69) (263)
------------- ------------ ----------- --------- ----------
Retained earnings, end of period.............. 8,824 -- 8,824 (141) 8,683
Total AXA Equitable's equity, end of period... 15,545 15,545 (141) 15,404
------------- ------------ ----------- --------- ----------
TOTAL EQUITY, END OF PERIOD.................. $ 18,633 $ -- $ 18,633 $ (141) $ 18,492
============= ============ =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2018
------------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ------------------ ------------ -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/.......................... $ (40) $ -- $ (69) $ (109)
Adjustments to reconcile net income (loss) to
net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances........................... 338 -- (83) 255
Policy charges and fee income................ (869) -- 8 (861)
Net derivative (gains) losses................ 777 -- 38 815
Amortization and depreciation................ -- 137 64 201
Amortization of deferred sales commission.... 7 (7) -- --
Other depreciation and amortization.......... (23) 23 -- --
Amortization of other Intangibles............ 8 (8) -- --
Equity (income) loss from
limited partnerships....................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships....................... 25 (25) -- --
|
F-85
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ------------------ --------- ----------
(IN MILLIONS)
Changes in:
Reinsurance recoverable.................... $ 2 $ -- $ (149) $ (147)
Deferred policy acquisition costs.......... 10 (10) -- --
Capitalization of deferred policy
acquisition costs........................ -- (135) -- (135)
Future policy benefits..................... (191) -- (7) (198)
Current and deferred income taxes.......... (52) -- 132 80
Other, net................................. (122) 64 70 12
------------ ------------------ --------- ----------
Net cash provided by (used in)
operating activities....................... $ (21) $ -- $ 4 $ (17)
------------ ------------------ --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................. $ 1,606 $ -- $ 77 $ 1,683
Real estate held for the production
of income................................ -- 140 -- 140
Short-term investments..................... -- 688 -- 688
Other...................................... 54 (140) -- (86)
Payment for the purchase/origination of:
Short-term investments..................... -- (377) -- (377)
Cash settlements related to
derivative instruments..................... (14) -- (489) (503)
Change in short-term investments............ 396 (311) (85) --
Other, net.................................. (560) -- 153 (407)
------------ ------------------ --------- ----------
Net cash provided by (used in)
investing activities........................ $ (639) $ -- $ (344) $ (983)
------------ ------------------ --------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,366 $ -- $ (468) $ 1,898
Withdrawals................................ (1,322) -- 241 (1,081)
Transfer (to) from Separate Accounts....... (115) -- 567 452
------------ ------------------ --------- ----------
Net cash provided by (used in)
financing activities........................ $ 1,040 $ -- $ 340 $ 1,380
------------ ------------------ --------- ----------
|
/(1)/Net income (loss) includes $154 million in the three months ended
March 31, 2018 of the discontinued operations that are not included in
net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of June 30, 2018 and for the three and six months ended
June 30, 2018 that have been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
June 30, 2018 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables.
AS OF JUNE 30, 2018
------------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
----------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,786 $ -- $ 4,786 $ (76) $ 4,710
Amounts due from reinsurers................ 3,088 -- 3,088 (9) 3,079
Current and deferred taxes................. 159 422 581 3 584
----------- ----------- ------------ --------- -----------
Total Assets............................. $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
----------- ----------- ------------ --------- -----------
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities............... $ 28,122 $ -- $ 28,122 $ (64) $ 28,058
----------- ----------- ------------ --------- -----------
Total Liabilities........................ $ 202,196 $ -- $ 202,196 $ (64) $ 202,132
----------- ----------- ------------ --------- -----------
|
F-86
AS OF JUNE 30, 2018
-----------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
---------- ------------ ------------ --------- -----------
(IN MILLIONS)
EQUITY:
Retained Earnings.......................... $ 6,617 $ -- $ 6,617 $ (18) $ 6,599
AXA Equitable Equity....................... 13,925 -- 13,925 (18) 13,907
---------- ------------ ------------ --------- -----------
Total Equity............................. 16,964 -- 16,964 (18) 16,946
---------- ------------ ------------ --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity......... $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
========== ============ ============ ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2018
----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 904 $ -- $ -- $ 904 $ (21) $ 883
Net derivative gains (losses).............. (312) -- -- (312) 27 (285)
------------- ---------- ----------- ----------- -------- -----------
Total revenues........................... 2,439 -- (824) 1,615 6 1,621
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,339 -- -- 1,339 (38) 1,301
Compensation and benefits.................. 466 (32) (360) 74 -- 74
Commissions and distribution
related payments......................... 377 (112) (106) 159 -- 159
Amortization of deferred policy
acquisition costs........................ 31 145 1 177 5 182
Other operating costs and expenses......... 2,486 (1) (172) 2,313 -- 2,313
------------- ---------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 4,950 -- (639) 4,311 (33) 4,278
------------- ---------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,511) -- (185) (2,696) 39 (2,657)
Income tax (expense) benefit from
continuing operations...................... 553 -- 8 561 (9) 552
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (1,958) -- (177) (2,135) 30 (2,105)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss)........................... (1,958) -- (156) (2,114) 30 (2,084)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,114) $ -- $ -- $ (2,114) $ 30 $ (2,084)
============= ========== =========== =========== ======== ===========
|
THREE MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (1,958) $ (156) $ (2,114) $ 30 $ (2,084)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss)................ (2,278) (142) (2,420) 30 (2,390)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (2,420) $ -- $ (2,420) $ 30 $ (2,390)
============= =========== =========== ======== ===========
|
F-87
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,773 $ -- $ -- $ 1,773 $ (29) $ 1,744
Net derivative gains (losses).............. (1,172) -- (2) (1,174) 72 (1,102)
------------- ----------- ----------- ----------- -------- -----------
Total revenues........................... 4,387 -- (1,670) 2,717 43 2,760
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,828 -- -- 1,828 (47) 1,781
Compensation and benefits.................. 992 (65) (704) 223 -- 223
Commissions and distribution
related payments......................... 748 (213) (216) 319 -- 319
Amortization of deferred policy
acquisition costs........................ 89 280 1 370 21 391
Other operating costs and expenses......... 2,926 (2) (361) 2,563 -- 2,563
------------- ----------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 7,100 -- (1,284) 5,816 (26) 5,790
------------- ----------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,713) -- (386) (3,099) 69 (3,030)
------------- ----------- ----------- ----------- -------- -----------
Income tax (expense) benefit from
continuing operations...................... 622 -- 25 647 (15) 632
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (2,091) -- (361) (2,452) 54 (2,398)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss)........................... (2,091) -- (311) (2,402) 54 (2,348)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,401) $ -- $ -- $ (2,401) $ 54 $ (2,347)
============= =========== =========== =========== ======== ===========
|
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (2,091) $ (311) $ (2,402) $ 54 $ (2,348)
------------- ----------- ------------- --------- -----------
Comprehensive income (loss)................ (3,160) (305) (3,465) 54 (3,411)
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (3,463) $ -- $ (3,463) $ 54 $ (3,409)
============= =========== ============= ========= ===========
|
F-88
SIX MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
Net income (loss) attributable to
AXA Equitable.............................. (2,401) -- (2,401) 54 (2,347)
------------- ------------ ----------- --------- -----------
Retained earnings, end of period............ 6,617 -- 6,617 (18) 6,599
------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period. 13,925 -- 13,925 (18) 13,907
------------- ------------ ----------- --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 16,964 $ -- $ 16,964 $ (18) $ 16,946
============= ============ =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ----------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (2,091) $ -- $ 54 $ (2,037)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,773) -- 29 (1,744)
Net derivative (gains) losses............... 1,172 -- (72) 1,100
Amortization and depreciation............... -- 335 21 356
Amortization of deferred sales commission... 13 (13) -- --
Other depreciation and amortization......... (45) 45 -- --
Equity (income) loss from
limited partnerships...................... -- (60) -- (60)
Distributions from joint ventures and
limited partnerships...................... 44 (44) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:
Reinsurance recoverable................... 15 -- 166 181
Deferred policy acquisition costs......... 89 (89) -- --
Capitalization of deferred policy
acquisition costs....................... -- (280) -- (280)
Future policy benefits.................... 396 -- (554) (158)
Current and deferred income taxes......... (645) -- 167 (478)
Other, net................................ 416 104 (304) 216
----------- ------------ ----------- ------------
Net cash provided by (used in)
operating activities........................ $ 1,190 $ (2) $ (319) $ 869
----------- ------------ ----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities.................. $ 4,843 $ -- $ 24 $ 4,867
Real estate joint ventures.................. -- 140 -- 140
Short-term investments...................... -- 1,331 (24) 1,307
Other....................................... 260 (140) -- 120
Payment for the purchase/origination of:
Short-term investments...................... -- (1,081) 205 (876)
Cash settlements related to
derivative instruments...................... (267) -- (489) (756)
Change in short-term investments............. 248 (248) -- --
Other, net................................... 379 -- 11 390
----------- ------------ ----------- ------------
Net cash provided by (used in)
investing activities......................... $ (1,605) $ 2 $ (273) $ (1,876)
----------- ------------ ----------- ------------
|
F-89
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 5,227 $ -- $ (1,107) $ 4,120
Withdrawals............................... (2,611) -- 480 (2,131)
Transfer (to) from Separate Accounts...... (305) -- 1,219 914
|
/(1)/Net income (loss) includes $310 million in the six months ended June 30,
2018 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated statement of
cash flows for the nine months ended September 30, 2018 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's September 30, 2018 Form
10-Q. For these items, the tables detail the amounts as previously reported
and the impact upon those line items due to the reclassifications to conform
to the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables. Tables for the
other consolidated financial statements as of or for the three and nine
months ended September 30, 2018 are not presented as these revisions were
already reflected in the Company's September 30, 2018 Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2018
---------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ------------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 258 $ -- $ 258
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (60) 60 -- --
Equity (income) loss from
limited partnerships...................... -- (83) -- (83)
Distribution from joint ventures and
limited partnerships...................... 63 (63) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:.................................
Reinsurance recoverable................... 20 -- 86 106
Deferred policy acquisition costs......... (129) 129 -- --
Capitalization of deferred policy
acquisition costs....................... -- (432) -- (432)
Future policy benefits.................... (58) -- (541) (599)
Current and deferred income taxes......... (264) -- (400) (664)
Other, net................................ 123 146 179 448
----------- ------------------- ---------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES.................................. $ 1,614 $ (2) $ (502) $ 1,110
----------- ------------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................ $ 6,913 $ -- $ 77 $ 6,990
Real estate joint ventures................ -- 140 -- 140
Short-term investments.................... -- 1,806 -- 1,806
Other..................................... 344 (140) -- 204
Short-term investments.................... -- (1,530) 204 (1,326)
Cash settlements related to
derivative instruments...................... (584) -- (492) (1,076)
Change in short-term investments............. 350 (274) (77) (1)
Other, net................................... 305 -- (19) 286
----------- ------------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (2,990) $ 2 $ (307) $ (3,295)
----------- ------------------- ---------- -----------
|
F-90
NINE MONTHS ENDED SEPTEMBER 30, 2018
----------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- -------------------- ---------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 7,852 $ -- $ (1,668) $ 6,184
Withdrawals............................... (4,014) -- 760 (3,254)
Transfer (to) from Separate Accounts...... (338) -- 1,717 1,379
------------- -------------------- ---------- ----------
Net cash provided by (used in)
financing activities....................... $ 1,293 $ -- $ 809 $ 2,102
------------- -------------------- ---------- ----------
|
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 20 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------- ------------ --------- ----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,961 $ -- $ 4,961 $ (64) $ 4,897
-------------- ------------- ------------ --------- ----------
Total Assets.............................. $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,691 $ -- $ 28,691 $ 66 $ 28,757
Current and deferred taxes................. 2,726 (562) 2,164 (46) 2,118
-------------- ------------- ------------ --------- ----------
Total Liabilities......................... $ 195,091 $ -- $ 195,091 $ 20 $ 195,111
-------------- ------------- ------------ --------- ----------
EQUITY:
Retained Earnings.......................... $ 5,978 $ -- $ 5,978 $ (84) $ 5,894
-------------- ------------- ------------ --------- ----------
AXA Equitable Equity....................... 11,459 -- 11,459 (84) 11,375
-------------- ------------- ------------ --------- ----------
Noncontrolling interest.................... 3,046 -- 3,046 -- 3,046
Total Equity............................... 14,505 -- 14,505 (84) 14,421
-------------- ------------- ------------ --------- ----------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY........................ $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ------------ ---------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 852 $ -- $ -- $ 852 $ (22) $ 830
Net derivative gains (losses).............. (362) -- 10 (352) 7 (345)
------------- ----------- ------------- ------------ ---------- ------------
Total revenues........................... 2,314 -- (745) 1,569 (15) 1,554
|
F-91
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ----------- --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 975 -- -- 975 (3) 972
Interest credited to policyholders'
account balances......................... 279 -- -- 279 (30) 249
Compensation and benefits.................. 438 (33) (322) 83 -- 83
Commissions and distribution
related payments......................... 382 (114) (96) 172 -- 172
Amortization of deferred policy
acquisition costs........................ 29 148 -- 177 63 240
Other operating costs and expenses......... 381 (1) (179) 201 -- 201
------------- ----------- ------------- ----------- --------- ----------
Total benefits and other deductions...... 2,489 -- (598) 1,891 30 1,921
------------- ----------- ------------- ----------- --------- ----------
Income (loss) from continuing operations,
before income taxes........................ (175) -- (147) (322) (45) (367)
Income tax (expense) benefit from
continuing operations...................... 121 -- 11 132 16 148
------------- ----------- ------------- ----------- --------- ----------
Net income (loss) from
continuing operations...................... (54) -- (136) (190) (29) (219)
------------- ----------- ------------- ----------- --------- ----------
Net income (loss)........................... (54) -- (118) (172) (29) (201)
------------- ----------- ------------- ----------- --------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ (172) $ -- $ -- $ (172) $ (29) $ (201)
============= =========== ============= =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ (54) $ (118) $ (172) $ (29) $ (201)
------------- ------------- ----------- --------- ----------
Change in unrealized gains (losses), net
of reclassification adjustment.......... 92 -- 92 21 113
Total other comprehensive income (loss),
net of income taxes..................... 127 (7) 120 21 141
------------- ------------- ----------- --------- ----------
Comprehensive income (loss)............... 73 (125) (52) (8) (60)
------------- ------------- ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE
TO AXA EQUITABLE........................ $ (52) $ -- $ (52) $ (8) $ (60)
============= ============= =========== ========= ==========
|
F-92
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to
AXA Equitable.............................. (172) -- (172) (29) (201)
------------- ------------ ------------ --------- -----------
Retained earnings, end of period............ 5,978 -- 5,978 (84) 5,894
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
beginning of year.......................... 17 -- 17 (21) (4)
Other comprehensive income (loss)........... 120 -- 120 21 141
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
end of period.............................. 137 -- 137 -- 137
------------- ------------ ------------ --------- -----------
Total AXA Equitable's equity, end of period. 11,459 -- 11,459 (84) 11,375
------------- ------------ ------------ --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 14,505 $ -- $ 14,505 $ (84) $ 14,421
============= ============ ============ ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (54) $ -- $ (29) $ (83)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances.......................... 279 -- (30) 249
Policy charges and fee income............... (852) -- 22 (830)
Net derivative (gains) losses............... 362 -- (7) 355
Amortization and depreciation............... -- 229 63 292
Amortization of deferred sales commission... 9 (9) -- --
Other depreciation and amortization......... 36 (36) -- --
Amortization of other intangibles........... 8 (8) -- --
Equity (income) loss from
limited partnerships...................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships...................... 26 (26) -- --
Changes in: --
Reinsurance recoverable................... (23) -- (173) (196)
Deferred policy acquisition costs......... 29 (29) -- --
Capitalization of deferred policy
acquisition costs....................... -- (148) -- (148)
Future policy benefits.................... 241 -- 17 258
Current and deferred income taxes......... (188) -- (6) (194)
Other, net................................ 151 65 -- 216
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES......................... $ 18 $ (1) $ (143) $ (126)
------------- ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 631 $ -- $ 631
Payment for the purchase/origination of:
Short-term investments...................... -- (376) (289) (665)
Change in short-term investments............. 254 (254) -- --
Other, net................................... 43 -- 100 143
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES......................... $ (2,447) $ 1 $ (189) $ (2,635)
------------- ----------------- --------- -----------
|
F-93
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,240 $ -- $ 269 $ 2,509
Withdrawals................................ (785) -- (157) (942)
Transfer (to) from Separate Accounts....... 176 -- 220 396
------------ -------------- -------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES....................... $ 2,306 $ -- $ 332 $ 2,638
------------ -------------- -------- ----------
|
/(1)/Net income (loss) includes $118 million in the three months ended
March 31, 2017 of the discontinued operations that are not included in
Net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of and for the three and six months ended June 30, 2017 that
have been affected by the revisions. This information has been corrected
from the information previously presented in the Company's June 30, 2018
Form 10-Q. For these items, the tables detail the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, the adjustment for the discontinued
operation, revisions and the amounts as currently revised. Prior period
amounts have been reclassified to conform to current period presentation,
where applicable, and are summarized in the accompanying tables.
AS OF JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,913 $ -- $ 4,913 $ (63) $ 4,850
------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 29,679 $ -- $ 29,679 $ 53 $ 29,732
Current and deferred taxes................. 3,267 (542) 2,725 (39) 2,686
------------- -------------- ----------- --------- -----------
Total Liabilities......................... $ 199,095 $ -- $ 199,095 $ 14 $ 199,109
------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 7,479 $ -- $ 7,479 $ (77) $ 7,402
------------- -------------- ----------- --------- -----------
AXA Equitable Equity....................... 13,273 -- 13,273 (77) 13,196
------------- -------------- ----------- --------- -----------
Total Equity............................... 16,257 -- 16,257 (77) 16,180
------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 846 $ -- $ -- $ 846 $ (12) $ 834
Net derivative gains (losses).............. 1,763 -- 5 1,768 8 1,776
------------- ---------- ------------ ----------- ---------- ----------
Total revenues........................... 4,548 -- (781) 3,767 (4) 3,763
|
F-94
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ------------ --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 1,363 $ -- $ -- $ 1,363 $ (7) $ 1,356
Interest credited to policyholders'
account balances......................... 208 -- -- 208 (9) 199
Compensation and benefits.................. 450 (32) (328) 90 -- 90
Commissions and distribution
related payments......................... 389 (116) (103) 170 -- 170
Amortization of deferred policy
acquisition costs........................ (49) 150 -- 101 (1) 100
Other operating costs and expenses......... 149 (2) (208) (61) -- (61)
------------- ---------- ------------- ------------ --------- ----------
Total benefits and other deductions...... 2,516 -- (641) 1,875 (17) 1,858
------------- ---------- ------------- ------------ --------- ----------
Income (loss) from continuing operations,
before income taxes......................... 2,032 -- (140) 1,892 13 1,905
------------- ---------- ------------- ------------ --------- ----------
Income tax (expense) benefit from
continuing operations....................... (419) -- 11 (408) (5) (413)
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) from continuing operations.. 1,613 -- (129) 1,484 8 1,492
------------- ---------- ------------- ------------ --------- ----------
Net income (loss)............................. 1,613 -- (113) 1,500 8 1,508
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) attributable to
AXA Equitable............................... $ 1,500 $ -- $ -- $ 1,500 $ 8 $ 1,508
============= ========== ============= ============ ========= ==========
|
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ 1,613 $ (113) $ 1,500 $ 8 $ 1,508
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss)............... 1,887 (93) 1,794 8 1,802
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable........................ $ 1,794 $ -- $ 1,794 $ 8 $ 1,802
============== ============== ============ ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,698 $ -- $ -- $ 1,698 $ (34) $ 1,664
Net derivative gains (losses).............. 1,362 -- 15 1,377 54 1,431
------------- ---------- ------------- ----------- --------- -----------
Total revenues........................... 6,823 -- (1,526) 5,297 20 5,317
|
F-95
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 2,338 $ -- $ -- $ 2,338 $ (10) $ 2,328
Compensation and benefits.................. 888 (65) (650) 173 -- 173
Commissions and distribution
related payments......................... 771 (230) (199) 342 -- 342
Amortization of deferred policy
acquisition costs........................ (20) 298 -- 278 62 340
Other operating costs and expenses......... 530 (3) (387) 140 -- 140
------------- ---------- ------------- ----------- --------- -----------
Total benefits and other deductions...... 4,966 -- (1,239) 3,727 52 3,779
------------- ---------- ------------- ----------- --------- -----------
Income (loss) from continuing operations,
before income taxes......................... 1,857 -- (287) 1,570 (32) 1,538
Income tax (expense) benefit from
continuing operations....................... (298) -- 22 (276) 11 (265)
------------- ---------- ------------- ----------- --------- -----------
Net income (loss) from continuing operations.. 1,559 -- (265) 1,294 (21) 1,273
------------- ---------- ------------- ----------- --------- -----------
Net income (loss)............................. 1,559 -- (231) 1,328 (21) 1,307
Net income (loss) attributable to
AXA Equitable............................... $ 1,328 $ -- $ -- $ 1,328 $ (21) $ 1,307
============= ========== ============= =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ 1,559 $ (231) $ 1,328 $ (21) $ 1,307
-------------- ------------ ------------ --------- -----------
Change in unrealized gains (losses), net
of reclassification adjustment............ 386 -- 386 21 407
Other comprehensive income................. 401 13 414 21 435
-------------- ------------ ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ 1,742 $ -- $ 1,742 $ -- $ 1,742
============== ============ ============ ========= ===========
|
F-96
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- --------------
(IN MILLIONS)
STATEMENTS OF EQUITY:
Retained earnings, beginning of year....... $ 6,151 $ -- $ 6,151 $ (56) $ 6,095
Net income (loss) attributable to
AXA Equitable............................. 1,328 -- 1,328 (21) 1,307
------------- ------------ ------------ --------- --------------
Retained earnings, end of period........... 7,479 -- 7,479 (77) 7,402
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
beginning of year......................... 17 -- 17 (21) (4)
Other comprehensive income (loss).......... 414 -- 414 21 435
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
end of period............................. 431 -- 431 -- 431
------------- ------------ ------------ --------- --------------
Total AXA Equitable's equity, end
of period................................ 13,273 -- 13,273 (77) 13,196
------------- ------------ ------------ --------- --------------
Noncontrolling interest, end of period..... 2,984 -- 2,984 -- 2,984
------------- ------------ ------------ --------- --------------
TOTAL EQUITY, END OF PERIOD............... $ 16,257 $ -- $ 16,257 $ (77) $ 16,180
============= ============ ============ ========= ==============
|
SIX MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ 1,559 $ -- $ (21) $ 1,538
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,698) -- 34 (1,664)
Net derivative (gains) losses............... (1,362) -- (54) (1,416)
Amortization and depreciation............... -- 233 62 295
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (61) 61 -- --
Equity (income) loss from
limited partnerships...................... -- (65) -- (65)
Distribution from joint ventures and
limited partnerships...................... 50 (50) -- --
Changes in:
Reinsurance recoverable................... (194) -- (354) (548)
Deferred policy acquisition costs......... 43 (43) -- --
Capitalization of deferred policy
acquisition costs....................... (63) (235) -- (298)
Future policy benefits.................... 1,303 -- 45 1,348
Current and deferred income taxes......... 204 -- 3 207
Other, net................................ 84 115 -- 199
----------- ----------------- ---------- -----------
Net cash provided by (used in)
operating activities......................... $ (75) $ (1) $ (285) $ (361)
----------- ----------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 1,078 $ -- $ 1,078
Payment for the purchase/origination of:
Short-term investments...................... -- (1,599) -- (1,599)
Change in short-term investments............. (508) 522 (14) $ --
Other, net................................... 243 -- (197) 46
----------- ----------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (3,588) $ 1 $ (211) $ (3,798)
----------- ----------------- ---------- -----------
|
F-97
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- -----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 4,109 $ -- $ 784 $ 4,893
Withdrawals................................ (1,557) -- (284) (1,841)
Transfer (to) from Separate Accounts..... 767 -- (4) 763
----------- ---------------- --------- -----------
Net cash provided by (used in)
financing activities........................ $ 4,182 $ -- $ 496 $ 4,678
----------- ---------------- --------- -----------
|
/(1)/Net income (loss) includes $231 million in the six months ended June 30,
2017 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items in the consolidated statement of
cash flows for the nine months ended September 30, 2017 financial
information that has been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
September 30, 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables. Tables for the other consolidated financial statements as of and for
the three and nine months ended September 30, 2017 are not included as these
revisions were already reflected in the Company's September 30, 2018
Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 432 $ -- $ 432
Other depreciation and amortization......... (67) 67 -- --
Equity (income) loss from
limited partnerships...................... -- (103) -- (103)
Distribution from joint ventures and
limited partnerships...................... 94 (94) -- --
Changes in:
Reinsurance recoverable................... (361) -- (455) (816)
Deferred policy acquisition costs......... 42 (42) -- --
Capitalization of deferred policy
acquisition costs....................... -- (433) -- (433)
Future policy benefits.................... 1,146 -- 168 1,314
Current and deferred income taxes......... 640 -- (389) 251
Other, net................................ 617 197 -- 814
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES........................ $ 994 $ (1) $ (676) $ 317
---------- ----------------- --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments..................... $ -- $ 1,909 $ -- $ 1,909
Payment for the purchase/origination of:
Short-term investments..................... -- (2,174) -- (2,174)
Change in short-term investments............ (266) 266 -- --
Other, net.................................. (258) -- 203 (55)
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES........................ $ (5,231) $ 1 $ 203 $ (5,027)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................... $ 5,871 $ -- $ 1,116 $ 6,987
Withdrawals................................. (2,574) -- (244) (2,818)
Transfer (to) from Separate Accounts........ 1,617 -- (399) 1,218
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES........................ $ 5,460 $ -- $ 473 $ 5,933
---------- ----------------- --------- ----------
|
F-98
22)SUBSEQUENT EVENTS
AXA Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the "2019 Plan")
In November 2018, Holdings' Board of Directors and AXA, as Holdings' then
controlling stockholder, adopted the 2019 Plan, which became effective
January 1, 2019, with a total of 5.2 million shares of common stock reserved
for issuance thereunder. On February 25, 2019, the Compensation Committee of
Holdings' Board of Directors approved an amendment to the 2019 Plan
increasing the amount of shares of Holdings' common stock available for
issuance in connection with equity awards granted under the 2019 Plan by two
million shares. The holder of a majority of the outstanding shares of
Holdings' common stock executed a written consent approving the increase on
February 28, 2019.
AXA Secondary Offering of Holdings Common Stock and Holdings Share Buy-back
On March 25, 2019, AXA completed a follow-on secondary offering of
46 million shares of common stock of Holdings and the sale to Holdings of
30 million shares of common stock of Holdings. Following the completion of
this secondary offering and the share buyback by Holdings, AXA owns 48.3% of
the shares of common stock of Holdings. As a result, Holdings is no longer a
majority owned subsidiary of AXA.
Repayment of Senior Surplus Note
On December 28, 2018, the Company, issued a $572 million senior surplus note
due December 28, 2019 to Holdings, which bears interest at a fixed rate of
3.75%, payable semi-annually. The Company repaid this note on March 5, 2019.
F-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE I
SUMMARY OF INVESTMENTS -- OTHER THAN INVESTMENTS IN RELATED PARTIES
AS OF DECEMBER 31, 2018
AMOUNT AT
WHICH SHOWN
ON BALANCE
COST/(1)/ FAIR VALUE SHEET
------------- ------------- -------------
(IN MILLIONS)
Fixed Maturities:
U.S. government, agencies and authorities.. $ 13,646 $ 13,335 $ 13,335
State, municipalities and
political subdivisions.................... 408 454 454
Foreign governments........................ 515 519 519
Public utilities........................... 4,614 4,569 4,569
All other corporate bonds.................. 22,076 21,807 21,807
Residential mortgage-backed................ 193 202 202
Asset-backed............................... 600 590 590
Redeemable preferred stocks................ 440 439 439
------------- ------------- -------------
Total fixed maturities....................... 42,492 41,915 41,915
Mortgage loans on real estate/(2)/........... 11,825 11,478 11,818
Real estate held for the production
of income................................. 52 52 52
Policy loans................................. 3,267 3,944 3,267
Other equity investments..................... 1,103 1,144 1,144
Trading securities........................... 15,361 15,166 15,166
Other invested assets........................ 1,554 1,554 1,554
------------- ------------- -------------
Total Investments............................ $ 75,654 $ 75,253 $ 74,916
============= ============= =============
|
/(1)/Cost for fixed maturities represents original cost, reduced by
repayments and write-downs and adjusted for amortization of premiums or
accretion of discount; cost for equity securities represents original
cost reduced by write-downs; cost for other limited partnership
interests represents original cost adjusted for equity in earnings and
reduced by distributions.
/(2)/Balance Sheet amount for mortgage loans on real estate represents
original cost adjusted for amortization of premiums or accretion of
discount and reduced by valuation allowance.
F-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE IV
REINSURANCE/(1)/
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
ASSUMED PERCENTAGE
CEDED TO FROM OF AMOUNT
GROSS OTHER OTHER NET ASSUMED
AMOUNT COMPANIES COMPANIES AMOUNT TO NET
---------- --------- --------- ---------- ----------
(IN MILLIONS)
AS OF DECEMBER 31, 2018
Life insurance in-force...................... $ 390,374 $ 69,768 $ 30,322 $ 350,928 8.6%
========== ========= ========= ========== =========
FOR THE YEAR ENDED DECEMBER 31, 2018
Premiums:
Life insurance and annuities................. $ 787 $ 128 $ 177 $ 836 21.2%
Accident and health.......................... 49 32 9 26 34.6%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 836 $ 160 $ 186 $ 862 21.6%
========== ========= ========= ========== =========
As of December 31, 2017
Life insurance in-force/(2)/................. $ 392,926 $ 73,843 $ 30,300 $ 349,383 8.7%
========== ========= ========= ========== =========
For the year ended December 31, 2017
Premiums:
Life insurance and annuities................. $ 826 $ 135 $ 186 $ 877 21.2%
Accident and health.......................... 54 36 9 27 33.3%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 880 $ 171 $ 195 $ 904 21.6%
========== ========= ========= ========== =========
As of December 31, 2016
Life insurance in-force...................... $ 399,230 $ 78,760 $ 31,722 $ 352,192 9.0%
========== ========= ========= ========== =========
For the year ended December 31, 2016
Premiums:
Life insurance and annuities................. $ 790 $ 135 $ 197 $ 852 23.1%
Accident and health.......................... 60 41 9 28 32.1%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 850 $ 176 $ 206 $ 880 23.4%
========== ========= ========= ========== =========
|
/(1)/Includes amounts related to the discontinued group life and health
business.
/(2)/Previously reported amounts for "Life insurance in-force -- Ceded to
other companies" of $41,330 million and "Net amount" of $381,896 have
been revised due to an error.
F-101
Incentive Life Optimizer(R)
An individual flexible premium variable life insurance policy issued by AXA
Equitable Life Insurance Company with variable investment options offered under
AXA Equitable's Separate Account FP.
PROSPECTUS DATED MAY 1, 2019
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING, OR TAKING ANY
OTHER ACTION UNDER A POLICY. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES
AND SUPPLEMENTS. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST, WHICH
CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
This prospectus describes the Incentive Life Optimizer(R) policy, but is not
itself a policy. This prospectus is a disclosure document and describes all of
the policy's material features, benefits, rights and obligations, as well as
other information. The description of the policy's material provisions in this
prospectus is current as of the date of this prospectus. If certain material
provisions under the policy are changed after the date of this prospectus in
accordance with the policy, those changes will be described in a supplement to
this prospectus. You should carefully read this prospectus in conjunction with
any applicable supplements. To make this prospectus easier to read, we
sometimes use different words than the policy. AXA Equitable or your financial
professional can provide any further explanation about your policy.
This policy is no longer sold. This prospectus is for current policy owners
only. You should note that your policy features and charges, and your
investment options, may vary depending on the state and/or the date on which
you purchased your policy. For more information about the particular options,
features and charges applicable to you, please contact your financial
professional and/or refer to your policy.
For information about income, estate and gift taxes in connection with life
insurance policies as well as possible estate and gift tax consequences, please
see the Tax information section later in this prospectus, including the
information under "Estate, gift, and generation-skipping taxes."
WHAT IS INCENTIVE LIFE OPTIMIZER(R)?
Incentive Life Optimizer(R) provides life insurance coverage, plus the
opportunity for you to earn a return in our guaranteed interest option and/or
one or more of the following variable investment options:
VARIABLE INVESTMENT OPTIONS
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT GAMCO Mergers & Acquisitions
. 1290 VT GAMCO Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. American Funds Insurance Series(R) Global Small Capitalization Fund
. American Funds Insurance Series(R) New World Fund(R)
. Charter/SM/ Multi-Sector Bond
. Charter/SM/ Small Cap Growth
. Charter/SM/ Small Cap Value
. EQ/400 Managed Volatility/(2)/
. EQ/500 Managed Volatility/(2)/
. EQ/2000 Managed Volatility/(2)/
. EQ/AB Small Cap Growth/(2)/
. EQ/Aggressive Allocation/(1)(2)/
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/ClearBridge Large Cap Growth/(2)/
. EQ/Common Stock Index
. EQ/Conservative Allocation/(1)(2)/
. EQ/Conservative-Plus Allocation/(1)(2)/
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM(R) Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Global Equity Managed Volatility/(2)/
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Core Managed Volatility/(2)/
. EQ/International Equity Index
. EQ/International Managed Volatility/(2)/
. EQ/International Value Managed Volatility/(2)/
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science and Technology
. EQ/Janus Enterprise/(2)/
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Core Managed Volatility/(2)/
. EQ/Large Cap Growth Index
. EQ/Large Cap Growth Managed Volatility/(2)/
. EQ/Large Cap Value Index
. EQ/Large Cap Value Managed Volatility/(2)/
. EQ/Lazard Emerging Markets Equity
. EQ/Loomis Sayles Growth/(2)/
. EQ/MFS International Growth
. EQ/MFS(R) International Value
. EQ/Mid Cap Index
. EQ/Mid Cap Value Managed Volatility/(2)/
VARIABLE INVESTMENT OPTIONS
. EQ/Moderate Allocation/(1)(2)/
. EQ/Moderate-Plus Allocation/(1)(2)/
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/UBS Growth and Income
. Fidelity(R) VIP Growth & Income
. Fidelity(R) VIP Mid Cap
. Franklin Mutual Shares VIP
. Franklin Small Cap Value VIP
. Invesco V.I. Mid Cap Core Equity
. Invesco V.I. Small Cap Equity
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
. MFS(R) Investors Trust
. MFS(R) Massachusetts Investors Growth Stock
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
. PIMCO CommodityRealReturn(R) Strategy
. T. Rowe Price Equity Income II
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
. Templeton Developing Markets VIP
. Templeton Global Bond VIP
. Templeton Growth VIP
. VanEck VIP Global Hard Assets
(1)Also referred to as an "EQ Allocation investment option" in this prospectus.
(2)This is the variable investment option's new name, effective on or about
May 20, 2019, subject to regulatory approval. Please see "Portfolios of the
Trusts" later in this prospectus for the variable investment option's former
name.
Amounts that you allocate under your policy to any of the variable investment
options are invested in a corresponding "Portfolio" that is part of one of the
trusts (the "Trusts"), which are mutual funds. Please see "About the Portfolios
of the Trusts" for more information about the Portfolios and the Trusts. Your
investment results in a variable investment option will depend on those of the
related Portfolio. Any gains will generally be tax deferred and the life
insurance benefits we pay if the policy's insured person dies will generally be
income tax free.
OTHER CHOICES YOU HAVE. You have considerable flexibility to tailor the policy
to meet your needs. For example, subject to our rules, you can (1) choose when
and how much you contribute (as "premiums") to your policy, (2) pay certain
premium amounts to guarantee that your insurance coverage will continue for at
least a certain number of policy years, regardless of investment performance,
(3) borrow or withdraw amounts you have accumulated, (4) choose between two
life insurance death benefit options, (5) increase or decrease the amount of
insurance coverage, (6) elect to receive an insurance benefit if the insured
person becomes terminally ill, and (7) obtain certain optional benefits that we
offer by "riders" to your policy.
OTHER AXA EQUITABLE POLICIES. We offer a variety of fixed and variable life
insurance policies which offer policy features, including investment options,
that are different from those offered by this prospectus. Not every policy or
feature is offered through your financial professional. Replacing existing
insurance with Incentive Life Optimizer(R) or another policy may not be to your
advantage. You can contact us to find out more about any other AXA Equitable
insurance policy.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO
INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
#624291/AA & ADL
ELECTRONIC DELIVERY OF SHAREHOLDER REPORTS (PURSUANT TO RULE 30E-3). Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper
copies of the shareholder reports for portfolio companies available under your
policy will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Company or from your financial intermediary.
Instead, the reports will be made available on a web-site, and you will be
notified by mail each time a report is posted and provided with a website link
to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically from the
Company or your financial intermediary by calling 1-800-777-6510.
You may elect to receive all future reports in paper free of charge. You can
inform the Company or your financial intermediary that you wish to continue
receiving paper copies of your shareholder reports by calling 1-877-522-5035 or
by sending an email request to EquitableFunds@dfinsolutions.com. Your election
to receive reports in paper will apply to all portfolio companies available
under your policy.
Contents of this Prospectus
-----------------------------------------------------------------
1. RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES
YOU WILL PAY 6
-----------------------------------------------------------------
Tables of policy charges 6
How we allocate charges among your investment options 9
Changes in charges 9
-----------------------------------------------------------------
2. RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS
AND RISKS 10
-----------------------------------------------------------------
How you can pay for and contribute to your policy 10
The minimum amount of premiums you must pay 10
You can guarantee that your policy will not terminate
before a certain date 11
You can elect a "paid up" death benefit guarantee 11
You can receive an accelerated death benefit under the
Long Term Care Services/SM/ Rider 11
Investment options within your policy 12
About your life insurance benefit 13
Alternative higher death benefit in certain cases 13
You can increase or decrease your insurance coverage 14
Accessing your money 15
Risks of investing in a policy 15
How the Incentive Life Optimizer(R) variable life insurance
policy is available 15
-----------------------------------------------------------------
3. WHO IS AXA EQUITABLE? 16
-----------------------------------------------------------------
How to reach us 17
About our Separate Account FP 17
Your voting privileges 18
About the Trusts 18
-----------------------------------------------------------------
4. ABOUT THE PORTFOLIOS OF THE TRUSTS 19
-----------------------------------------------------------------
-----------------------------------------------------------------
5. DETERMINING YOUR POLICY'S VALUE 29
-----------------------------------------------------------------
Your policy account value 29
|
"We,""our,""us" and the "Company" refer to AXA Equitable. "Financial
professional" means the registered representative of either AXA Advisors or an
unaffiliated broker dealer which has entered into a selling agreement with AXA
Distributors who is offering you this policy.
When we address the reader of this prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
prospectus is discussing at that point. This is usually the policy's owner. If
a policy has more than one owner, all owners must join in the exercise of any
rights an owner has under the policy, and the word "owner" therefore refers to
all owners.
When we use the word "state," we also mean any other local jurisdiction whose
laws or regulations affect a policy.
This prospectus does not offer Incentive Life Optimizer(R) anywhere such offers
are not lawful. AXA Equitable does not authorize any information or
representation about the offering other than that contained or incorporated in
this prospectus, in any current supplements thereto, or in any related sales
materials authorized by AXA Equitable.
3
CONTENTS OF THIS PROSPECTUS
------------------------------------------------------
6. TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT
OPTIONS 30
------------------------------------------------------
Transfers you can make 30
How to make transfers 30
Our automatic transfer service 30
Our asset rebalancing service 31
------------------------------------------------------
7. ACCESSING YOUR MONEY 32
------------------------------------------------------
Borrowing from your policy 32
Loan extension (for guideline premium test
policies only) 33
Making withdrawals from your policy 34
Surrendering your policy for its net cash
surrender value 34
Your option to receive a terminal illness living
benefit 34
------------------------------------------------------
8. TAX INFORMATION 35
------------------------------------------------------
Basic income tax treatment for you and your
beneficiary 35
Tax treatment of distributions to you (loans,
partial withdrawals, and full surrender) 35
Tax treatment of living benefits rider or Long
Term Care Services/SM/ Rider under a policy
with the applicable rider 36
Business and employer owned policies 37
Requirement that we diversify investments 37
Estate, gift, and generation-skipping taxes 37
Pension and profit-sharing plans 38
Split-dollar and other employee benefit programs 38
ERISA 38
3.8% Tax on Net Investment Income or "NII" 38
Our taxes 38
Tax withholding and information reporting 38
Possibility of future tax changes and other tax
information 39
------------------------------------------------------
9. MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS 40
------------------------------------------------------
Guarantee premium test for the no-lapse guarantee 40
Paid up death benefit guarantee 40
Other benefits you can add by rider 41
Customer loyalty credit 44
Variations among Incentive Life Optimizer(R)
policies 45
Your options for receiving policy proceeds 45
Your right to cancel within a certain number of
days 45
------------------------------------------------------
10. MORE INFORMATION ABOUT CERTAIN POLICY CHARGES 46
------------------------------------------------------
Deducting policy charges 46
Charges that the Trusts deduct 49
------------------------------------------------------
11.MORE INFORMATION ABOUT PROCEDURES THAT APPLY
TO YOUR POLICY 50
------------------------------------------------------
Dates and prices at which policy events occur 50
Policy issuance 50
Ways to make premium and loan payments 51
Assigning your policy 51
You can change your policy's insured person 51
|
Requirements for surrender requests 52
Gender-neutral policies 52
Future policy exchanges 52
Broker transaction authority 52
--------------------------------------------------------------------
12.MORE INFORMATION ABOUT OTHER MATTERS 53
--------------------------------------------------------------------
About our general account 53
Transfers of your policy account value 53
Telephone and Internet requests 54
Cybersecurity 55
Suicide and certain misstatements 55
When we pay policy proceeds 55
Changes we can make 55
Reports we will send you 56
Distribution of the policies 56
Legal proceedings 58
--------------------------------------------------------------------
13.FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA
EQUITABLE 59
--------------------------------------------------------------------
--------------------------------------------------------------------
14.PERSONALIZED ILLUSTRATIONS 60
--------------------------------------------------------------------
Illustrations of policy benefits 60
--------------------------------------------------------------------
REQUESTING MORE INFORMATION
Statement of Additional Information -- Table of contents
--------------------------------------------------------------------
|
4
CONTENTS OF THIS PROSPECTUS
An index of key words and phrases
This index should help you locate more information on the terms used in this
prospectus.
PAGE
Administrative Office 17
age 51
Allocation Date 12
alternative death benefit 13
amount at risk 47
anniversary 50
assign; assignment 51
automatic transfer service 50
AXA Equitable 16
AXA Equitable Access Account 45
AXA Equitable Holdings, Inc. 16
basis 36
beneficiary 45
business day 50
Cash Surrender Value 32
Code 35
collateral 32
cost of insurance charge 47
cost of insurance rates 47
customer loyalty credit 44
day 50
default 10
disruptive transfer activity 53
face amount 13
grace period 11
Guaranteed Interest Account 12
guarantee premium 40
guaranteed interest option 12
Incentive Life Optimizer 1
insured person 1
Internet 17
investment funds 12
investment option 1
investment start date 51
issue date 12
lapse 10
loan extension 33
loan, loan interest 32
Long Term Care Services/SM/ Rider 36
market timing 53
modified endowment contract 35
|
PAGE
Money Market Lock-in Period 12
month, year 50
monthly deduction 9
net cash surrender value 34
net policy account value 29
no-lapse guarantee 11
Option A, B 13
our 3
owner 3
paid up 40
paid up death benefit guarantee 34
partial withdrawal 34
payment option 45
planned initial premium 7
planned periodic premium 10
policy 1
policy account value 29
Portfolio 1, 19
premium payments 10
prospectus 1
rebalancing 31
receive 49
restore, restoration 11
riders 10
SEC 1
Separate Account FP 17
state 3
subaccount 17
surrender 34
surrender charge 46
target premium 8
transfers 30
Trusts 1
unit values 17
units 29
us 3
variable investment option 1, 12
we 3
withdrawal 34
you, your 3
|
5
AN INDEX OF KEY WORDS AND PHRASES
1. Risk/benefit summary: Charges and expenses you will pay
TABLES OF POLICY CHARGES
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the policy.
The first table shows the charges that we deduct under the terms of your policy
when you buy and each time you contribute to your policy, surrender the policy,
reduce the face amount or transfer policy account value among investment
options. ALL CHARGES ARE SHOWN ON A GUARANTEED MAXIMUM BASIS. THE CURRENT
CHARGES MAY BE LOWER THAN THE GUARANTEED MAXIMUM FOR CERTAIN CHARGES./(1)/
------------------------------------------------------------------------------------------------------------------------
TRANSACTION FEES
------------------------------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
------------------------------------------------------------------------------------------------------------------------
PREMIUM CHARGE From each premium 6% of each premium/(2)/
SURRENDER (TURNING IN) OF YOUR POLICY Upon surrender Initial surrender charge per $1,000 of initial
DURING ITS FIRST 10 YEARS OR THE FIRST base policy face amount or per $1,000 of
10 YEARS AFTER YOU HAVE REQUESTED AN requested base policy face amount
INCREASE IN YOUR POLICY'S FACE increase:/(4)/
AMOUNT/(3)(5)/ Highest: $46.10
Lowest: $8.90
Representative: $16.87/(6)/
REQUEST A DECREASE IN YOUR POLICY'S Effective date of the decrease A pro rata portion of the charge that would
FACE AMOUNT/(3)/ apply to a full surrender at the time of the
decrease.
TRANSFERS AMONG INVESTMENT OPTIONS Upon transfer $25 per transfer./(7)/
SPECIAL SERVICES CHARGES
. Wire transfer charge/(8)/ At the time of the transaction Current and Maximum Charge: $90
. Express mail charge/(8)/ At the time of the transaction Current and Maximum Charge: $35
. Policy illustration charge/(9)/ At the time of the transaction Current Charge: $0
. Duplicate policy charge/(9)/ At the time of the transaction Maximum Charge: $25
. Policy history charge/(9)(10)/ At the time of the transaction Current and Maximum Charge: $35
. Charge for returned payments/(9)/ At the time of the transaction Current and Maximum Charge: $50
Current and Maximum Charge: $25
------------------------------------------------------------------------------------------------------------------------
|
This table shows the fees and expenses that you will pay periodically during
the time that you own the Policy, not including underlying Trust portfolio fees
and expenses.
----------------------------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
----------------------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
----------------------------------------------------------------------------------------------------------------
ADMINISTRATIVE CHARGE/(3)(11)/ Monthly (1) Policy Year Amount deducted
1 $15/(12)/
2+ $10/(12)/
plus
|
(2)Charge per $1,000 of the initial base policy
face amount and any requested base policy
face amount increase that exceeds the high-
est previous face amount:
Policy Years 1 - 10 (and any 10 year period
following a face amount increase):
Highest: $0.30
Lowest: $0.06
Representative: $0.07/(6)/
---------------------------------------------------------------------------------------------------------
|
6
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
----------------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
----------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
----------------------------------------------------------------------------------------------------
COST OF INSURANCE CHARGE/(3)(11)(13)/ Monthly Charge per $1,000 of
the amount for which
we are at risk:/(14)/
Highest: $83.34
Lowest: $0.02
Representative:
$0.09/(15)/
|
MORTALITY AND EXPENSE RISK Monthly Annual % of your value
CHARGE Policy Year in our variable investment options
1-10 1.00%
11+ 0.50%
|
LOAN INTEREST SPREAD/(16)/ On each policy anniversary (or 1% of loan amount.
on loan termination, if earlier)
|
-----------------------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
-----------------------------------------------------------------------------------------------------------
MAXIMUM AMOUNT THAT
OPTIONAL RIDER CHARGES WHEN CHARGE IS DEDUCTED MAY BE DEDUCTED
-----------------------------------------------------------------------------------------------------------
CHILDREN'S TERM INSURANCE Monthly (while the rider is in Charge per $1,000 of
effect) rider benefit amount:
$0.50
DISABILITY DEDUCTION WAIVER/(3)/ Monthly (while the rider is in Percentage of all
effect) other monthly charges:
Highest: 132%
Lowest: 7%
Representative:
12%/(15)/
DISABILITY PREMIUM WAIVER/(3)/ Monthly (while the rider is in Charge for disability
effect) premium waiver per
$1,000 of benefit for
which such rider is
purchased:/(17)/
Initial base policy
face amount:/(18)/
Highest: $0.60
Lowest: $0.02
Representative:
$0.07/(15)/
Children's term
insurance:
Highest: $0.03
Lowest: $0.01
Representative:
$0.01/(15)/
Long Term Care
Services/SM/ Rider:
Highest: $0.02
Lowest: $0.0009
Representative:
$0.003/(15)/
Option to purchase
additional
insurance:
Highest: $0.07
Lowest: $0.02
Representative:
$0.03/(15)/
LONG TERM CARE SERVICES/SM/ Monthly (while the rider is in Charge per $1,000 of
RIDER/(3)/ effect) the amount for which
we are at risk:/(19)/
Highest: $1.18
Lowest: $0.08
Representative:
$0.22/(20)/
OPTION TO PURCHASE Monthly (while the rider is in Charge per $1,000 of
ADDITIONAL INSURANCE/(3)/ effect) rider benefit amount:
Highest: $0.17
Lowest: $0.04
Representative:
$0.16/(20)/
CASH VALUE PLUS RIDER Upon payment of initial One-time charge of
premium $250
ADDING A LIVING BENEFITS RIDER At the time of the transaction $100 (if elected
after policy issue)
EXERCISE OF OPTION TO RECEIVE At the time of the transaction $250
A "LIVING BENEFIT"
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|
7
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
(1)For more information about some of these charges, see "Deducting policy
charges" under "More information about certain policy charges" later in this
prospectus. The illustrations of Policy Benefits that your financial
professional will provide will show the impact of the actual current and
guaranteed maximum rates, if applicable, of the following policy charges,
based on various assumptions (except for the loan interest spread, where we
use current rates in all cases).
(2)Currently, we reduce this charge to 4% after an amount equal to two "target
premiums" has been paid. The "target premium" is actuarially determined for
each policy, based on that policy's specific characteristics, as well as the
policy's face amount, among other factors. A similar charge applies to
premiums attributed to requested face amount increases that are above your
highest previous face amount. If your policy includes the Cash Value Plus
Rider, a portion of the premium charge will be refunded upon surrender
within the first three policy years.
(3)Since the charges may vary based on individual characteristics of the
insured, these charges may not be representative of the charge that you will
pay. In particular, the initial amount of surrender charge depends on each
policy's specific characteristics. Your financial professional can provide
you with more information about these charges as they relate to the
insured's particular characteristics. See "Deducting policy charges" under
"More information about certain policy charges."
(4)If your policy includes the Cash Value Plus Rider, the surrender charges are
reduced (see "Cash Value Plus Rider" in "More information about policy
features and benefits" later in this prospectus).
(5)The surrender charge attributable to an increase in your policy's face
amount is in addition to any remaining surrender charge attributable to the
policy's initial face amount.
(6)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue or at the time of a requested face amount
increase, in the preferred plus non-tobacco user risk class.
(7)No charge, however, will ever apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any
transfer pursuant to our automatic transfer service or asset rebalancing
service as discussed later in this prospectus.
(8)Unless you specify otherwise, this charge will be deducted from the amount
you request.
(9)The charge for this service must be paid using funds outside of your policy.
Please see "Deducting policy charges" under "More information about certain
policy charges" for more information.
(10)The charge for this service may be less depending on the policy history you
request. Please see "Deducting policy charges" under "More information
about certain policy charges" for more information.
(11)Not applicable after the insured person reaches age 100.
(12)Not applicable if the minimum face amount stated in your policy is $10,000.
Please see "Your policy's face amount" under "About your life insurance
benefit" in "Risk/ benefit summary: Policy features, benefits and risks"
later in this prospectus.
(13)Insured persons who present particular health, occupational or vocational
risks may be charged other additional charges as specified in their
policies.
(14)Our amount "at risk" is the difference between the amount of death benefit
and the policy account value as of the deduction date.
(15)This representative amount is the rate we guarantee in the first policy
year for a representative insured male age 35 at issue in the preferred
plus non-tobacco user risk class.
(16)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
loan interest spread is the excess of the interest rate we charge over the
interest rate we credit.
(17)Amount charged equals the sum of disability premium waiver rider charges
corresponding to the base policy, any children's term insurance, option to
purchase additional insurance and/or any Long Term Care Services/SM/ Rider
that you have added to your policy and to any base policy face amount
increases.
(18)The monthly charges corresponding to the base policy will be adjusted
proportionately to any face amount reduction made at your request or
resulting from a partial withdrawal under death benefit Option A.
(19)Our amount "at risk" for this rider is the long-term care specified amount
minus your policy account value, but not less than zero.
(20)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue in the preferred plus non-tobacco user risk
class.
You also bear your proportionate share of all fees and expenses paid by a
Portfolio that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses currently
charged by any of the Portfolios that you will pay periodically during the time
that you own the Policy. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. MORE DETAIL CONCERNING
EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE TRUST PROSPECTUS FOR
THAT PORTFOLIO.
-----------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
-----------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses (expenses that are deducted from Portfolio assets Lowest Highest
including management fees, 12b-1 fees, service fees and/or other expenses)/(1)/ 0.58% 2.17%
-----------------------------------------------------------------------------------------------------------
|
(1)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses. Pursuant to a contract, AXA Equitable
Funds Management Group, LLC has agreed to make payments or waive its
management, administrative and other fees to limit the expenses of certain
affiliated Portfolios through April 30, 2020 ("Expense Limitation
Arrangement") (unless the Trust's Board of Trustees consents to an earlier
revision or termination of this agreement). The Expense Limitation
Arrangement may be terminated by AXA Equitable Funds Management Group, LLC
at any time after April 30, 2020. The range of expenses in the table above
does not include the effect of any Expense Limitation Arrangement. The range
of expense in the table below includes the effect of the Expense Limitation
Arrangements.
--------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL
PERCENTAGE OF DAILY NET ASSETS
--------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses after the effect Lowest Highest
of Expense Limitation Arrangements/(/*/)/ 0.58% 2.02%
--------------------------------------------------------------------------
|
(*)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses.
8
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
In your application for a policy, you tell us from which investment options you
want us to take the policy's monthly deductions as they fall due. You can
change these instructions at any time. If we cannot deduct the charge as your
most current instructions direct, we will allocate the deduction among your
investment options proportionately to your value in each. If the paid up death
benefit guarantee is in effect, we will allocate the deduction among the
investment options proportionately to your value in each.
CHANGES IN CHARGES
We reserve the right in the future to (1) make a charge for certain taxes or
reserves set aside for taxes (see "Our taxes" under "Tax information" later in
this prospectus) that might be imposed on us; (2) make a charge for the
operating expenses of our variable investment options (including, without
limitation, SEC registration fees and related legal counsel fees and auditing
fees); or (3) change our other current policy charges (in no event will they
exceed the maximum charges guaranteed in your policy).
Any changes that we make in our current charges or charge rates will be on a
basis that is equitable to all policy owners of a given class, and will be
determined based on reasonable assumptions as to expenses, mortality, policy
and contract claims, taxes, investment income and lapses. Any changes in
charges may apply to then in force policies, as well as to new policies. You
will be notified in writing of any changes in charges under your policy.
9
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
2. Risk/benefit summary: Policy features, benefits and risks
Incentive Life Optimizer(R) is a variable life insurance policy that provides
you with flexible premium payment plans and benefits to meet your specific
needs. The basic terms of the policy require you to make certain payments in
return for life insurance coverage. The payments you can make and the coverage
you can receive under this "base policy" are described below.
Riders to your base policy can increase the benefits you receive and affect the
amounts you pay in certain circumstances. Available riders are listed in "Other
benefits you can add by rider" under "More information about policy features
and benefits" later in this prospectus.
HOW YOU CAN PAY FOR AND CONTRIBUTE TO YOUR POLICY
PREMIUM PAYMENTS. We call the amounts you contribute to your policy "premiums"
or "premium payments." The amount we require as your first premium varies
depending on the specifics of your policy and the insured person. Each
subsequent premium payment must be at least $50, although we can increase this
minimum if we give you advance notice. Otherwise, with a few exceptions
mentioned below, you can make premium payments at any time and in any amount.
SECTION 1035 EXCHANGES OF POLICIES WITH OUTSTANDING LOANS. If we approve, you
may purchase an Incentive Life Optimizer(R) policy through an assignment and
exchange of another life insurance policy with a cash surrender value pursuant
to a valid exchange under Section 1035 of the Internal Revenue Code (the
"Code"). If such other policy is subject to a policy loan, we may permit you to
carry over all or a portion of such loan to the Incentive Life Optimizer(R)
policy, subject to our administrative rules then in effect. In this case, we
will treat any cash paid, plus any loaned amount carried over to the Incentive
Life Optimizer(R) policy, as premium received in consideration of our issuing
the policy. If we allow you to carry over all or a portion of any such
outstanding loan, then we will hold amounts securing such loan in the same
manner as the collateral for any other policy loan, and your policy also will
be subject to all our other rules regarding loans (see "Borrowing from your
policy" later in this prospectus).
YOU CAN GENERALLY PAY PREMIUMS AT SUCH TIMES AND IN SUCH AMOUNTS AS YOU LIKE
BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S 100TH BIRTHDAY, SO LONG
AS YOU DON'T EXCEED CERTAIN LIMITS DETERMINED BY THE FEDERAL INCOME TAX LAWS
APPLICABLE TO LIFE INSURANCE.
YOUR CHOICE OF A LIFE INSURANCE QUALIFICATION TEST AND LIMITS ON PREMIUM
PAYMENTS. A policy must satisfy either of two testing methods to qualify as a
life insurance contract for tax purposes under Section 7702 of the Code. In
your application, you may choose either the guideline premium/cash value
corridor test ("guideline premium test") or the cash value accumulation test.
If you do not choose a life insurance qualification test, your policy will be
issued using the guideline premium test. Once your policy is issued, the
qualification method cannot be changed.
The qualification method you choose will depend upon your objective in
purchasing the policy. Generally, under the cash value accumulation test, you
have the flexibility to pay more premiums in the earlier years than under the
guideline premium test for the same face amount and still qualify as life
insurance for federal income tax purposes. Under the guideline premium test,
the federal tax law definition of "life insurance" limits your ability to pay
certain high levels of premiums (relative to your policy's insurance coverage)
but increases those limits over time. We will return any premium payments that
exceed these limits.
You should note, however, that the alternative death benefit under the cash
value accumulation test may be higher in earlier policy years than under the
guideline premium test, which will result in higher charges. Under either test,
if at any time your policy account value (as defined under "Determining your
policy's value," later in the prospectus) is high enough that the alternative
higher death benefit would apply, we reserve the right to limit the amount of
any premiums that you pay, unless the insured person provides us with evidence
of insurability satisfactory to us.
Regardless of which life insurance qualification test you choose, if your
premium payments exceed certain other amounts specified under the Code, your
policy will become a "modified endowment contract," which may subject you to
additional taxes and penalties on any distributions from your policy. See "Tax
information" later in this prospectus. We may return any premium payments that
would cause your policy to become a modified endowment contract if we have not
received a satisfactory modified endowment contract acknowledgment from you.
You can ask your financial professional to provide you with an illustration of
Policy Benefits that shows you the amount of premiums you can pay, based on
various assumptions, without exceeding applicable tax law limits. The tax law
limits can change as a result of certain changes you make to your policy. For
example, a reduction in the face amount of your policy may reduce the amount of
premiums that you can pay and may impact whether your policy is a modified
endowment contract.
You should discuss your choice of life insurance qualification test and
possible limitations on policy premiums with your financial professional and
tax advisor before purchasing the policy.
PLANNED PERIODIC PREMIUMS. Page 3 of your policy will specify a "planned
periodic premium." This is the amount that you request us to bill you. However,
payment of these or any other specific amounts of premiums is not mandatory.
You need to pay only the amount of premiums (if any) necessary to keep your
policy from lapsing and terminating as discussed below.
THE MINIMUM AMOUNT OF PREMIUMS YOU MUST PAY
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if your "net policy account value" is not enough to
pay your policy's monthly charges when due unless:
. you have paid sufficient premiums to maintain the no-lapse guarantee, the
guarantee is still in effect and any outstanding
10
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
loan and accrued loan interest does not exceed the policy account value (see
"You can guarantee that your policy will not terminate before a certain
date" below);
. you are receiving monthly benefit payments under the Long Term Care
Services/SM/ Rider (see "Other benefits you can add by rider" under "More
information about policy features and benefits" later in this prospectus);
. you have elected the paid up death benefit guarantee and it remains in
effect and any outstanding policy loan and accrued loan interest does not
exceed the policy account value. (see "You can elect a" paid up "death
benefit guarantee" below); or
. your policy has an outstanding loan that would qualify for "loan extension."
("Policy account value" and "net policy account value" are explained under
"Determining your policy's value" later in this prospectus.)
We will mail a notice to you at your last known address if your policy lapses.
You will have a 61-day grace period to pay at least an amount prescribed in
your policy which would be enough to keep your policy in force for
approximately three months (without regard to investment performance). You may
not make any transfers or request any other policy changes during a grace
period. If we do not receive your payment by the end of the grace period, your
policy (and all riders to the policy) will terminate without value and all
coverage under your policy will cease. We will mail an additional notice to you
if your policy terminates.
YOUR POLICY WILL TERMINATE IF YOU DON'T PAY ENOUGH PREMIUMS (I) TO PAY THE
CHARGES WE DEDUCT OR (II) TO MAINTAIN THE NO-LAPSE GUARANTEE THAT CAN KEEP YOUR
POLICY FROM TERMINATING. HOWEVER, WE WILL FIRST SEND YOU A NOTICE AND GIVE YOU
THE OPPORTUNITY TO PAY ANY SHORTFALL.
You may owe taxes if your policy terminates while you have a loan outstanding,
even though you receive no additional money from your policy at that time. See
"Tax information," later in this prospectus.
RESTORING A TERMINATED POLICY. To have your policy "restored" (put back in
force), you must apply within six months after the date of termination. In some
states, you may have a longer period of time. You must also (i) present
evidence of insurability satisfactory to us and (ii) pay at least the amount of
premium that we require. The amount of payment will not be more than an amount
sufficient to cover total monthly deductions for 3 months, calculated from the
effective date of restoration, and the premium charge. We will determine the
amount of this required payment as if no interest or investment performance
were credited to or charged against your policy account. Your policy contains
additional information about the minimum amount of this premium and about the
values and terms of the policy after it is restored and the effective date of
such restoration. You may only restore your policy if it has terminated without
value. You may not restore a policy that was given up for its net cash
surrender value. The no-lapse guarantee will not be restored after the policy
terminates.
YOU CAN GUARANTEE THAT YOUR POLICY WILL NOT TERMINATE BEFORE A CERTAIN DATE
You can generally guarantee that your policy will not terminate for a number of
years by paying at least certain specified amounts of premiums. We call these
amounts "guarantee premiums" and they will be set forth on page 3 of your
policy. We call this guarantee against termination our "no-lapse guarantee."
The length of your policy's guarantee period will range from 5 to 20 years
depending on the insured's age when we issue the policy. Under the No Lapse
Guarantee provision, the policy is guaranteed not to lapse during a no lapse
guarantee period of 20 years for issue ages 0-55, the number of years to
attained age 75 for issue ages 56-69, and 5 years for issue ages 70 and over.
In some states, this guarantee may be referred to by a different name.
Your policy will not terminate, even if your net policy account value is not
sufficient to pay your monthly charges, as long as:
. You have satisfied the "guarantee premium test" (discussed in "guarantee
premium test for the no-lapse guarantee" under "More information about
policy benefits" later in this prospectus); and
. Any outstanding loan and accrued loan interest does not exceed the policy
account value.
There is no extra charge for this guarantee.
IF YOU PAY AT LEAST CERTAIN PRESCRIBED AMOUNTS OF PREMIUMS, AND ANY OUTSTANDING
POLICY LOAN AND ACCRUED LOAN INTEREST DO NOT EXCEED THE POLICY ACCOUNT VALUE,
YOUR POLICY WILL NOT LAPSE FOR A NUMBER OF YEARS, EVEN IF THE VALUE IN YOUR
POLICY BECOMES INSUFFICIENT TO PAY THE MONTHLY CHARGES.
YOU CAN ELECT A "PAID UP" DEATH BENEFIT GUARANTEE
Provided certain requirements are met and subject to our approval, you may
elect to take advantage of our "paid up" death benefit guarantee at any time
after the fourth year of your policy if the insured's attained age is 99 or
less. If you elect the paid up death benefit guarantee, we may reduce your base
policy's face amount. Thereafter, your policy will not lapse so long as the
paid up death benefit guarantee remains in effect. Also, if you elect the paid
up death benefit guarantee, you will be required to reallocate your existing
policy account value to a limited number of variable investment options that we
make available at our discretion. The guaranteed interest option will also be
available; however, we will limit the amount that may be allocated to the
guaranteed interest option at any time. Our paid up death benefit guarantee is
not available if you received monthly benefit payments under the Long Term Care
Services/SM/ Rider at any time.
The guarantee will terminate if (i) at any time following the election, the sum
of any outstanding policy loan and accrued interest, exceeds your policy
account value, or (ii) you request that we terminate the election. For more
information about the circumstances under which you can elect the paid up death
benefit, the possible reduction in face amount after this guarantee is elected
(including the possible imposition of surrender charges upon such reduction),
restrictions on allocating your policy account value and other effects of this
guarantee on your policy, see "Paid up death benefit guarantee" under "More
information about policy features and benefits" later in this prospectus.
YOU CAN RECEIVE AN ACCELERATED DEATH BENEFIT UNDER THE LONG TERM CARE
SERVICES/SM/ RIDER
In states where approved and subject to our eligibility requirements, the Long
Term Care Services/SM/ Rider may be added to your policy at
11
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
issue that provides an acceleration of the policy's death benefit in the form
of monthly payments if the insured becomes chronically ill and is receiving
qualifying long-term care services. If you are purchasing this policy through
an option to purchase additional insurance under another policy, or a
conversion from a term life policy or term rider, you cannot add the Long Term
Care Services/SM/ Rider. You can add this rider to policies with a face amount
of at least $100,000 which are not issued as a result of an option to purchase
additional insurance election or a conversion from a term life policy or term
rider. The monthly rate for this rider varies based on the individual
characteristics of the insured and the benefit percentage you select. You can
terminate this rider after your first policy year. For more information about
this rider, see "Other benefits you can add by rider" under "More information
about policy features and benefits" later in this prospectus.
INVESTMENT OPTIONS WITHIN YOUR POLICY
Except as set forth in the next paragraph, we will initially put all unloaned
amounts which you have allocated to variable investment options into such
options on the later of the business day that we receive the full minimum
initial premium at our Administrative Office or the register date of your
policy (the "Investment Start Date"). Before this date, your initial premium
will be held in a non-interest bearing account. See "Policy issuance" in "More
information about procedures that apply to your policy" later in this
prospectus.
In those states that require us to return your premium without adjustment for
investment performance within a certain number of days (see "Your right to
cancel within a certain number of days," later in this prospectus), we will
initially put all amounts which you have allocated to the variable investment
options into our EQ/Money Market investment option as of the later of the
Investment Start Date and the issue date for twenty calendar days (the "Money
Market Lock-in Period"). However, if we have not received all necessary
requirements for your policy as of the Issue Date, the Money Market Lock-In
Period will begin on the date we receive all necessary requirements to put the
policy in force at our Administrative Office. On the first business day
following the Money Market Lock-in Period, we will re-allocate that investment
in accordance with your premium allocation instructions then in effect. For
policies issued in these states, the "Allocation Date" is the first business
day following the Money Market Lock-in Period. For all other policies, the
Allocation Date is the Investment Start Date, and there is no automatic initial
allocation to the EQ/Money Market investment option.
You give such allocation instructions in your application to purchase a policy.
You can change the premium allocation percentages at any time, but this will
not affect any prior allocations. The allocation percentages that you specify
must always be in whole numbers and total exactly 100%.
The policy is between you and AXA Equitable. The policy is not an investment
advisory account, and AXA Equitable is not providing any investment advice or
managing the allocations under your policy. In the absence of a specific
written arrangement to the contrary, you, as the owner of the policy, have the
sole authority to make investment allocations and other decisions under the
policy. Your AXA Advisors' financial professional is acting as a broker-dealer
registered representative, and is not authorized to act as an investment
advisor or to manage the allocations under your policy. If your financial
professional is a registered representative with a broker-dealer other than AXA
Advisors, you should speak with him/her regarding any different arrangements
that may apply.
YOU CAN CHOOSE AMONG VARIABLE INVESTMENT OPTIONS.
VARIABLE INVESTMENT OPTIONS. The available variable investment options are
listed on the front cover of this prospectus. (Your policy and other
supplemental materials may refer to these as "Investment Funds.") The
investment results you will achieve in any one of these options will depend on
the investment performance of the corresponding Portfolio that shares the same
name as that option. That Portfolio follows investment practices, policies and
objectives that are appropriate to the variable investment option you have
chosen. You can lose your principal when investing in the variable investment
options. In periods of poor market performance, the net return, after charges
and expenses, may result in negative yields, including for the EQ/Money Market
variable investment option.
The advisers who make the investment decisions for each Portfolio are set forth
later in the prospectus under "About the Portfolios of the Trusts."
You will find other important information about each Portfolio in the separate
prospectuses for each Trust which accompany this prospectus, including a
comprehensive discussion of the risks of investing in each Portfolio. To obtain
copies of Trust prospectuses that do not accompany this prospectus, you may
call one of our customer service representatives at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.). We may add or delete
variable investment options or Portfolios at any time.
If you elect the paid up death benefit guarantee, your choice of variable
investment options will be limited to the EQ Allocation investment options, or
those investment options we are then making available under the rider (see
"Other benefits you can add by rider" under "More information about policy
features and benefits").
GUARANTEED INTEREST OPTION. You can also allocate some or all of your policy's
value to our guaranteed interest option. We, in turn, invest such amounts as
part of our general assets. Periodically, we declare a fixed rate of interest
(2% minimum) on amounts that you allocate to our guaranteed interest option. We
credit and compound the interest daily at an effective annual rate that equals
the declared rate. The rates we are declaring on existing policies at any time
may differ from the rates we are then declaring for newly issued policies. (The
guaranteed interest option is part of what your policy and other supplemental
material may refer to as the "Guaranteed Interest Account.")
If you elect the paid up death benefit guarantee, we will restrict the amount
of the policy account value that can be transferred or allocated to the
guaranteed interest option. For more information on these restrictions, see
"Paid up death benefit guarantee" under "More information about policy features
and benefits" later in this prospectus.
WE WILL PAY AT LEAST 2% ANNUAL INTEREST ON OUR GUARANTEED INTEREST OPTION.
12
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
ABOUT YOUR LIFE INSURANCE BENEFIT
YOUR POLICY'S FACE AMOUNT. In your application to buy an Incentive Life
Optimizer(R) policy, you tell us how much insurance coverage you want on the
life of the insured person. We call this the "face amount" of the base policy.
Generally, $100,000 is the minimum amount of coverage you can request. If you
have elected the Cash Value Plus Rider, the minimum face amount is $1 million.
If you are exercising the option to purchase additional insurance under another
policy, or a conversion from certain term life policies or term riders, the
minimum face amount is $25,000. For: 1) policies that exceed our disability
deduction waiver or disability premium waiver maximum coverage limit 2) face
amount increases issued on a less favorable underwriting basis than the base
policy 3) policy owners of certain discontinued AXA Equitable variable life
products where a requested increase in coverage involves the issuance of an
additional variable life policy or 4) face amount increases on a 1980 CSO
product issued on a less favorable underwriting basis than the base policy, the
minimum face amount is $10,000.
IF THE INSURED PERSON DIES, WE PAY A LIFE INSURANCE BENEFIT TO THE
"BENEFICIARY" YOU HAVE NAMED. THE AMOUNT WE PAY DEPENDS ON WHETHER YOU HAVE
CHOSEN DEATH BENEFIT OPTION A OR DEATH BENEFIT OPTION B. (SEE "YOUR OPTIONS FOR
RECEIVING POLICY PROCEEDS" UNDER "MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS" LATER IN THIS PROSPECTUS.)
YOUR POLICY'S "DEATH BENEFIT" OPTIONS. In your policy application, you also
choose whether the basic amount (or "benefit") we will pay if the insured
person dies is:
. Option A -- THE POLICY'S FACE AMOUNT on the date of the insured person's
death. The amount of this death benefit doesn't change over time, unless
you take any action that changes the policy face amount;
- or -
. Option B -- THE FACE AMOUNT PLUS THE "POLICY ACCOUNT VALUE" on the date of
death. Under this option, the amount of the death benefit generally changes
from day to day, because many factors (including investment performance,
charges, premium payments and withdrawals) affect your policy account value.
Your "policy account value" is the total amount that at any time is earning
interest for you or being credited with investment gains and losses under your
policy. (Policy account value is discussed in more detail under "Determining
your policy's value" later in this prospectus.)
Under Option B, your policy's death benefit will tend to be higher than under
Option A, assuming the same policy face amount and policy account value. As a
result, the monthly insurance charge we deduct will also be higher to
compensate us for our additional risk. If you have elected the paid up death
benefit guarantee or your policy has been placed on loan extension, the death
benefit option will be Option A and must remain Option A thereafter.
ALTERNATIVE HIGHER DEATH BENEFIT IN CERTAIN CASES
Your policy is designed to always provide a minimum level of insurance
protection relative to your policy account value, in part to meet the Code's
definition of "life insurance."
We will automatically pay an alternative death benefit if it is HIGHER than the
basic Option A or Option B death benefit you have selected. The alternate
higher death benefit is based upon the life insurance qualification test that
you choose. For the guideline premium test, this alternative death benefit is
computed by multiplying your policy account value on the insured person's date
of death by a percentage specified in your policy. Representative percentages
are as follows:
IF THE VALUE IN YOUR POLICY IS HIGH ENOUGH, RELATIVE TO THE FACE AMOUNT, THE
LIFE INSURANCE BENEFIT WILL AUTOMATICALLY BE GREATER THAN THE OPTION A OR
OPTION B DEATH BENEFIT YOU HAVE SELECTED.
--------------------------------------------------------
AGE:* 40 AND UNDER 45 50 55 60 65
--------------------------------------------------------
%: 250% 215% 185% 150% 130% 120%
|
-------------------------------------------------
AGE: 70 75-90 91 92 93 94-OVER
-------------------------------------------------
%: 115% 105% 104% 103% 102% 101%
-------------------------------------------------
|
* For the then-current policy year.
For the cash value accumulation test, the alternate death benefit is the
greater of the minimum death benefit as determined under the Code under this
test or 101% of the policy account value. The death benefit must be large
enough to ensure that the policy's cash surrender value (as computed under
section 7702 of the Code) is never larger than the net single premium needed to
fund future policy benefits. The net single premium varies based upon the
insured's age, sex and risk class and is calculated using an interest rate of
4% and mortality charges based upon the 2001 Commissioner's Standard Ordinary
Mortality Tables.
These higher alternative death benefits expose us to greater insurance risk
than the regular Option A and B death benefit. Because the cost of insurance
charges we make under your policy are based in part on the amount of our risk,
you will pay more cost of insurance charges for any periods during which a
higher alternative death benefit is the operative one.
The operative period for the higher alternative death benefit is determined in
connection with the requirements of the Code. The calculation of the death
benefit is built into the monthly calculation of the cost of insurance charge,
which is based on the net amount at risk. The need for the higher alternative
death benefit is assessed on each monthly anniversary date, and on the death of
the insured. Each policy owner receives an annual statement showing various
policy values. The annual statement shows the death benefit amount as of the
policy anniversary, and that amount would reflect the alternative higher death
benefit amount, if applicable at that time. This annual statement also reflects
the monthly cost of insurance charge for the policy year, reflecting a higher
net amount at risk in those months when the higher alternative death benefit is
in effect.
OTHER ADJUSTMENTS TO DEATH BENEFIT. We will increase the death benefit proceeds
by the amount of any other benefits we owe upon the insured person's death
under any optional riders which are in effect.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loan and unpaid loan interest, as well as any amount of monthly charges
under the policy that remain unpaid because the insured person died during a
grace period. We also reduce the death benefit if we have already paid part of
it under a living benefits rider. We reduce it by the amount of the living
benefits payment plus interest. See "Your option to receive a terminal illness
living benefit" later
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
in this prospectus. Under the Long Term Care Services/SM/ Rider, any monthly
benefit payments will be treated as a lien against the death benefit and reduce
your death benefit.
DEATH BENEFIT IF YOUR POLICY IS ON LOAN EXTENSION. Your policy offers an
additional feature against policy termination due to an outstanding loan,
called "loan extension." Availability of this feature is subject to certain
terms and conditions, including that you must have elected the guideline
premium test and have had your policy in force for at least 20 years. If your
policy is on loan extension, the death benefit payable under the policy will be
determined differently. For more information on loan extension, see "Borrowing
from your policy" under "Accessing your money."
SUBJECT TO CERTAIN RESTRICTIONS YOU CAN REQUEST A CHANGE IN YOUR DEATH BENEFIT
OPTION.
CHANGE OF DEATH BENEFIT OPTION. If you change from Option A to Option B, we
automatically reduce your base policy's face amount by an amount equal to your
policy account value at the time of the change. We may refuse this change if
the policy's face amount would be reduced below the minimum stated in your
policy. Changes from Option A to Option B are not permitted beyond the policy
year in which the insured person reaches age 80, if the paid up death benefit
guarantee is in effect or your policy is on loan extension. Also, changes from
Option A to Option B may cause certain policy benefits to be unavailable.
If you change from Option B to Option A, we automatically increase your base
policy's face amount by an amount equal to your policy account value at the
time of the change. You can request a change from Option B to Option A any time
after the second policy year and before the policy anniversary nearest the
insured's 100th birthday.
If the alternative death benefit (referenced above) is higher than the base
policy's death benefit at the time of the change in death benefit option, we
will determine the new base policy face amount somewhat differently from the
general procedures described above. See "Alternative higher death benefit in
certain cases" earlier in this section.
We will not deduct or establish any amount of surrender charge as a result of a
change in death benefit option. You may not change the death benefit option
under your policy while the Long Term Care Services/SM/ Rider is in effect.
Please refer to "Tax information" later in this prospectus, to learn about
certain possible income tax consequences that may result from a change in death
benefit option, including the effect of an automatic increase or decrease in
face amount.
YOU CAN INCREASE OR DECREASE YOUR INSURANCE COVERAGE
After the first policy year while this policy is in force, you may request an
increase in life insurance coverage under your policy. You may request a
decrease in your policy's face amount any time after the second year of your
policy but before the policy year in which the insured person reaches age 100.
The requested increase or decrease must be at least $10,000. Please refer to
"Tax information" for certain possible tax consequences and limitations of
changing the face amount of your policy.
We can refuse or limit any requested increase or decrease. We will not approve
any increase or decrease if (i) we are at that time being required to waive
charges or pay premiums under any optional disability waiver rider that is part
of the policy; (ii) the paid up death benefit guarantee is in effect; or
(iii) your policy is on loan extension. Also, we will not approve a face amount
increase if the insured person has reached age 81. Moreover, we will not
approve a face amount increase while the Long Term Care Services/SM/ Rider or
Cash Value Plus Rider is in effect. We will not accept a request for a face
amount decrease while you are receiving monthly benefit payments under the Long
Term Care Services/SM/ Rider.
Certain policy changes, including increases and decreases in your insurance
coverage, may also affect the guarantee premiums under the policy.
The following additional conditions also apply:
FACE AMOUNT INCREASES. We treat an increase in face amount in many respects as
if it were the issuance of a new policy. For example, you must submit
satisfactory evidence that the insured person still meets our requirements for
coverage. Also, we establish additional amounts of surrender charge and
guarantee premiums under your policy for the face amount increase, reflecting
the additional amount of coverage.
In most states, you can cancel the face amount increase within 10 days after
you receive a new policy page showing the increase. If you cancel, we will
reverse any charges attributable to the increase and recalculate all values
under your policy to what they would have been had the increase not taken place.
The monthly cost of insurance charge we make for the amount of the increase
will be based on the underwriting classification of the insured person when the
original policy was issued, provided the insured qualifies for the same
underwriting classification. An additional ten-year surrender charge and an
additional administrative charge will apply to the face amount that exceeds the
highest previous face amount. If the insured qualifies for a less favorable
underwriting classification than the base policy, we may offer to issue a
separate policy based on the rating class for the increase. See "Risk/benefit
summary: Charges and expenses you will pay."
FACE AMOUNT DECREASES. You may not reduce the face amount below the minimum
stated in your policy. Nor will we permit a decrease that would cause your
policy to fail the Internal Revenue Code's definition of life insurance.
Guarantee premiums, as well as our monthly deductions for the cost of insurance
coverage, will generally decrease from the time you reduce the face amount.
If you reduce the face amount during the first 10 years of your policy, or
during the first 10 years after a face amount increase you have requested, we
will deduct all or part of the remaining surrender charge from your policy
account. Assuming you have not previously changed the face amount, the amount
of the surrender charge we will deduct will be determined by dividing the
amount of the decrease by the initial face amount and multiplying that fraction
by the total amount of surrender charge that still remains applicable to your
policy. We deduct the charge from the same investment options as if it were
part of a regular monthly deduction under your policy.
In some cases, we may have to make a distribution to you from your policy at
the time we decrease your policy's face amount or change
14
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
your death benefit option. This may be necessary in order to preserve your
policy's status as life insurance under the Internal Revenue Code. We may also
be required to make such distribution to you in the future on account of a
prior decrease in face amount or change in death benefit option. The
distribution may be taxable.
ACCESSING YOUR MONEY
You can access the money in your policy in different ways. You may borrow up to
90% of the cash surrender value, less any outstanding loan and accrued loan
interest before the policy year in which the insured reaches age 75 (100%
thereafter). In your policy, the cash surrender value is equal to the
difference between your policy account value and any surrender charges that are
in effect under your policy. However, the amount you can borrow will be reduced
by any amount that we hold on a "restricted" basis following your receipt of a
terminal illness living benefits payment, as well as by any other loans and
accrued loan interest you have outstanding. The cash surrender value available
for loans is also reduced on a pro rata basis for the portion of policy face
amount accelerated to date but not by more than the accumulated benefit lien
amount. See "More information about policy features and benefits: Other
benefits you can add by rider: Long Term Care Services/SM/ Rider" later in this
prospectus. We will charge interest on the amount of the loan. See "Borrowing
from your policy" later in this prospectus for more information.
You can also make a partial withdrawal of $500 or more of your net cash
surrender value (defined later in this prospectus under "Surrendering your
policy for its net cash surrender value") at any time after the first year of
your policy and before the policy anniversary nearest to the insured's 100th
birthday. Partial withdrawals are not permitted if you have elected the paid up
death benefit guarantee, your policy is on loan extension, or you are receiving
monthly benefit payments under the Long Term Care Services/SM/ Rider. See
"Making withdrawals from your policy" later in this prospectus for more
information.
Finally, you can surrender (turn in) your policy for its net cash surrender
value at any time. See "Surrendering your policy for its net cash surrender
value" later in this prospectus. See "Tax information" later in this
prospectus, for the tax treatment of the various ways in which you can access
your money.
RISKS OF INVESTING IN A POLICY
The policy is unsuitable as a short-term savings vehicle. Some of the principal
risks of investing in a policy are as follows:
. If the investment options you choose perform poorly, you could lose some or
all of the premiums you pay.
. If the investment options you choose do not make enough money to pay for
the policy charges, except to the extent provided by any no lapse
guarantee, paid up death benefit guarantee or loan extension feature you
may have, you could have to pay more premiums to keep your policy from
terminating.
. If any policy loan and any accrued loan interest either equals or exceeds
the policy account value, your policy will terminate subject to the
policy's Grace Period provision and any loan extension endorsement you may
have.
. We can increase, without your consent and subject to any necessary
regulatory approvals, any charge that you currently pay at less than the
maximum amount. We will not increase any charge beyond the highest maximum
noted in the tables in "Tables of policy charges" under "Risk/benefit
summary: Charges and expenses you will pay" earlier in this prospectus.
. You may have to pay a surrender charge and there may be adverse tax
consequences if you wish to discontinue some or all of your insurance
coverage under a policy.
. Partial withdrawals from your policy are available only after the first
policy year and must be at least $500 and no more than the net cash
surrender value. Under certain circumstances, we will automatically reduce
your policy's face amount as a result of a partial withdrawal.
Your policy permits other transactions that also have risks. These and other
risks and benefits of investing in a policy are discussed in detail throughout
this prospectus.
A comprehensive discussion of the risks of each investment option may be found
in the Trust prospectus for that investment option.
HOW THE INCENTIVE LIFE OPTIMIZER(R) VARIABLE LIFE INSURANCE POLICY IS AVAILABLE
Incentive Life Optimizer(R) is primarily intended for purchasers other than
retirement plans. However, we do not place limitations on its use. Please see
"Tax information" for more information. Incentive Life Optimizer(R) is
available for issue ages 0 to 85.
15
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
3. Who is AXA Equitable?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
AXA Equitable Holdings, Inc. and its consolidated subsidiaries managed
approximately $618.6 billion in assets as of December 31, 2018. For more than
150 years AXA Equitable has been among the largest insurance companies in the
United States. We are licensed to sell life insurance and annuities in all
fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands. Our home office is located at 1290 Avenue of the Americas, New York,
NY 10104.
16
WHO IS AXA EQUITABLE?
HOW TO REACH US
To obtain (1) any forms you need for communicating with us, (2) unit values and
other values under your policy, and (3) any other information or materials that
we provide in connection with your policy or the Portfolios, you may
communicate with our Administrative Office as listed below for the purposes
described. Please refer to "Telephone and Internet requests" for effective
dates for processing telephone, Internet and fax requests, later in this
prospectus.
BY MAIL:
At the Post Office Box for our Administrative Office:
AXA Equitable -- AXA Life Operations Center
P.O. Box 1047
Charlotte, North Carolina 28201-1047
BY EXPRESS DELIVERY ONLY:
At the Street Address for our Administrative Office:
AXA Equitable -- AXA Life Operations Center
8501 IBM Drive, Suite 150
Charlotte, North Carolina 28262-4333
1-704-341-7000 (for express delivery purposes only)
BY PHONE:
Monday through Thursday, 8:00 am to 7:00 pm and Friday, 8:00 am to 5:30 pm,
Eastern Time: 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of
the U.S.).
BY E-MAIL:
life-service@axa.us.com
BY FAX:
1-855-268-6378
BY INTERNET:
You may register for online account access at www.axa.com or us.axa.com for
those outside the U.S. Our website provides access to account information and
customer service. After registering, you can view account details, perform
certain transactions, print customer service forms and find answers to common
questions.
REQUIRED FORMS. We require that the following types of communications be on
specific forms we provide for that purpose:
(1)request for our automatic transfer service (our dollar cost averaging
service);
(2)request for our asset rebalancing service;
(3)transfers among investment options (if submitted by e-mail);
(4)designation of new policy owner(s); and
(5)designation of new beneficiary(ies).
OTHER REQUESTS. We also have specific forms that we recommend you use for the
following:
(a)policy surrenders;
(b)transfers among investment options (not submitted by e-mail);
(c)changes in allocation percentages for premiums and deductions; and
(d)electing the paid up death benefit guarantee.
You can also change your allocation percentages, transfer among investment
options and/or change your address (1) by phone, (2) over the Internet, through
axa.com or us.axa.com for those outside the U.S., or (3) by writing our
Administrative Office. For more information about transaction requests you can
make by phone or over the Internet, see"How to make transfers" and "Telephone
and Internet requests" later in this prospectus. In the future, we may require
that certain requests be completed over the Internet.
Certain methods of contacting us, such as by telephone or electronically, may
be unavailable or delayed (for example our fax service may not be available at
all times and/or we may be unavailable due to emergency closing). In addition,
the level and type of service available may be restricted based on criteria
established by us.
We reserve the right to limit access to these services if we determine that you
are engaged in a disruptive transfer activity, such as "market timing." (See
"Disruptive transfer activity" in "More information about other matters.")
FORMAL REQUIREMENTS. Except for properly authorized telephone or Internet
transactions, any notice or request that does not use our standard form must be
in writing. It must be dated and signed by you and should also specify your
name, title (if applicable), the insured person's name (if different), your
policy number and adequate details about the notice you wish to give or other
action you wish us to take. We may require you to return your policy to us
before we make certain policy changes that you may request.
The proper person to sign forms, notices and requests would normally be the
owner or any other person that our procedures permit to exercise the right or
privilege in question. If there are joint owners all must sign. Any irrevocable
beneficiary or assignee that we have on our records also must sign certain
types of requests.
You should send all requests, notices and payments to our Administrative Office
at the addresses specified above. We will also accept requests and notices by
fax at the above number, if we believe them to be genuine. We reserve the
right, however, to require an original signature before acting on any faxed
item. You must send premium payments after the first one to our Administrative
Office at the above addresses; except that you should send any premiums for
which we have billed you to the address on the billing notice.
EDELIVERY
You can register to receive statements and other documents electronically. You
can do so by visiting our website at www.axa.com.
ABOUT OUR SEPARATE ACCOUNT FP
Each variable investment option is a part (or "subaccount") of our Separate
Account FP. We established Separate Account FP under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable investment
options for owners of our variable life insurance policies. We are the legal
owner of all of the assets in Separate Account FP and may withdraw any amounts
17
WHO IS AXA EQUITABLE?
that exceed our reserves and other liabilities with respect to variable
investment options under our policies. For example, we may withdraw amounts
from Separate Account FP that represent our investments in Separate Account FP
or that represent fees and charges under the policies that we have earned.
Income, gains and losses credited to, or charged against Separate Account FP
reflect its own investment experience and not the investment experience of AXA
Equitable's other assets.
Separate Account FP is registered with the SEC under the Investment Company Act
of 1940 and is registered and classified under that act as a "unit investment
trust." The SEC, however, does not manage or supervise AXA Equitable or
Separate Account FP. Although the Separate Account is registered, the SEC does
not monitor the activity of Separate Account FP on a daily basis. AXA Equitable
is not required to register, and is not registered, as an investment company
under the Investment Company Act of 1940.
Each subaccount (variable investment option) of Separate Account FP available
under Incentive Life Optimizer(R) invests solely in the applicable class of
shares issued by the corresponding Portfolio of the applicable Trust. Separate
Account FP immediately reinvests all dividends and other distributions it
receives from a Portfolio in additional shares of that class in that Portfolio.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable life insurance and/or annuity products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policy owners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policy owners, we
will see to it that appropriate action is taken to do so.
YOUR VOTING PRIVILEGES
VOTING OF PORTFOLIO SHARES. As the legal owner of any Portfolio shares that
support a variable investment option, we will attend (and have the right to
vote at) any meeting of shareholders of the Portfolio (or the Trusts). To
satisfy currently-applicable legal requirements, however, we will give you the
opportunity to tell us how to vote the number of each Portfolio's shares that
are attributable to your policy. The number of full and fractional votes you
are entitled to will be determined by dividing the policy account value (minus
any policy indebtedness) allocable to an investment option by the net asset
value per unit for the Portfolio underlying that investment option. We will
vote shares attributable to policies for which we receive no instructions in
the same proportion as the instructions we do receive from all policies that
participate in our Separate Account FP (discussed below). With respect to any
Portfolio shares that we are entitled to vote directly (because we do not hold
them in a separate account or because they are not attributable to policies),
we will vote in proportion to the instructions we have received from all
holders of variable annuity and variable life insurance policies who are using
that Portfolio. One effect of proportional voting is that a small number of
policy owners may control the outcome of a vote.
Under current legal requirements, we may disregard the voting instructions we
receive from policy owners only in certain narrow circumstances prescribed by
SEC regulations. If we do, we will advise you of the reasons in the next annual
or semiannual report we send to you.
VOTING AS POLICY OWNER. In addition to being able to instruct voting of
Portfolio shares as discussed above, policy owners that use our variable
investment options may in a few instances be called upon to vote on matters
that are not the subject of a shareholder vote being taken by any Portfolio. If
so, you will have one vote for each $100 of policy account value in any such
option; and we will vote our interest in Separate Account FP in the same
proportion as the instructions we receive from holders of Incentive Life
Optimizer(R) and other policies that Separate Account FP supports.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
18
WHO IS AXA EQUITABLE?
4. About the Portfolios of the Trusts
We offer both affiliated and unaffiliated Trusts, which in turn offer one or
more Portfolios. AXA Equitable Funds Management Group, LLC ("AXA FMG"), a
wholly owned subsidiary of AXA Equitable, serves as the investment adviser of
the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some
affiliated Portfolios, AXA FMG has entered into sub-advisory agreements with
one or more other investment advisers (the "sub-advisers") to carry out
investment decisions for the Portfolios. As such, among other responsibilities,
AXA FMG oversees the activities of the sub-advisers with respect to the
affiliated Trusts and is responsible for retaining or discontinuing the
services of those sub-advisers. The chart below indicates the sub-adviser(s)
for each Portfolio, if any. The chart below also shows the currently available
Portfolios and their investment objectives.
You should be aware that AXA Advisors, LLC and AXA Distributors, LLC (together,
the "Distributors") directly or indirectly receive 12b-1 fees from affiliated
Portfolios for providing certain distribution and/or shareholder support
services. These fees will not exceed 0.25% of the Portfolios' average daily net
assets. The affiliated Portfolios' sub-advisers and/or their affiliates may
also contribute to the cost of expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the sub-advisers'
respective Portfolios. In addition, AXA FMG, a wholly owned subsidiary of AXA
Equitable, receives management fees and administrative fees in connection with
the services it provides to the Portfolios. As such, it may be more profitable
for us to offer affiliated Portfolios than to offer unaffiliated Portfolios.
AXA Equitable or the Distributors may directly or indirectly receive 12b-1 fees
and additional payments from certain unaffiliated Portfolios, their advisers,
sub-advisers, distributors or affiliates, for providing certain administrative,
marketing, distribution and/or shareholder support services. These fees and
payments range from 0% to 0.60% of the unaffiliated Portfolios' average daily
net assets. The Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
Portfolios.
As a policy owner, you may bear the costs of some or all of these fees and
payments through your indirect investment in the Portfolios. (See the
Portfolios' prospectuses for more information.) These fees and payments, as
well as the Portfolios' investment management fees and administrative expenses,
will reduce the underlying Portfolios' investment returns. AXA Equitable may
profit from these fees and payments. AXA Equitable considers the availability
of these fees and payment arrangements during the selection process for the
underlying Portfolios. These fees and payment arrangements may create an
incentive for us to select Portfolios (and classes of shares of Portfolios)
that pay us higher amounts.
Some affiliated Portfolios invest in other affiliated Portfolios (the "EQ Fund
of Fund Portfolios"). The EQ Fund of Fund Portfolios offer policy owners a
convenient opportunity to invest in other Portfolios that are managed and have
been selected for inclusion in the EQ Fund of Fund Portfolios by AXA FMG. AXA
Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the
benefits of such Portfolios to policy owners and/or suggest that policy owners
consider whether allocating some or all of their account value to such
Portfolios is consistent with their desired investment objectives. In doing so,
AXA Equitable, and/or its affiliates, may be subject to conflicts of interest
insofar as AXA Equitable may derive greater revenues from the EQ Fund of Fund
Portfolios than certain other Portfolios available to you under your policy.
Please see "Allocating your contributions" later in this section for more
information about your role in managing your allocations.
As described in more detail in the Portfolio prospectuses, the EQ Managed
Volatility Portfolios may utilize a proprietary volatility management strategy
developed by AXA FMG (the "EQ volatility management strategy") and, in
addition, certain EQ Fund of Fund Portfolios may invest in affiliated
Portfolios that utilize this strategy. The EQ volatility management strategy
uses futures and options, such as exchange-traded futures and options contracts
on securities indices, to reduce the Portfolio's equity exposure during periods
when certain market indicators indicate that market volatility is above
specific thresholds set for the Portfolio. When market volatility is increasing
above the specific thresholds set for a Portfolio utilizing the EQ volatility
management strategy, the adviser of the Portfolio may reduce equity exposure.
Although this strategy is intended to reduce the overall risk of investing in
the Portfolio, it may not effectively protect the Portfolio from market
declines and may increase its losses. Further, during such times, the
Portfolio's exposure to equity securities may be less than that of a
traditional equity portfolio. This may limit the Portfolio's participation in
market gains and result in periods of underperformance, including those periods
when the specified benchmark index is appreciating, but market volatility is
high.
The EQ Managed Volatility Portfolios that include the EQ volatility management
strategy as part of their investment objective and/or principal investment
strategy, and the EQ Fund of Fund Portfolios that invest in other Portfolios
that use the EQ volatility management strategy, are identified below in the
chart by a "(check mark)" under the column entitled "Volatility Management."
Portfolios that utilize the EQ volatility management strategy (or, in the case
of certain EQ Fund of Fund Portfolios, invest in other Portfolios that use the
EQ volatility management strategy) are designed to reduce the overall
volatility of your account value and provide you with risk-adjusted returns
over time. During rising markets, the EQ volatility management strategy,
however, could result in your account value rising less than would have been
the case had you been invested in a Portfolio that does not utilize the EQ
volatility management strategy or, in the case of the EQ Fund of Fund
Portfolios, that invest exclusively in other Portfolios that do not use the
volatility management strategy. Conversely, investing in investment options
that feature a managed-volatility strategy may be helpful in a declining market
when high market volatility triggers a reduction in the investment option's
equity exposure because during these periods of high volatility, the risk of
losses from investing in equity securities may increase. In these instances,
your account value may decline less than would have been the case had you not
been invested in investment options that feature a volatility management
strategy.
19
ABOUT THE PORTFOLIOS OF THE TRUSTS
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the EQ volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
differ from the EQ volatility management strategy. Any such unaffiliated
Portfolio is not identified under "Volatility Management" below in the chart.
Such techniques could also impact your account value in the same manner
described above. Please see the Portfolio prospectuses for more information
about the Portfolios' objective and strategies.
Portfolio allocations in certain AXA variable annuity contracts with guaranteed
benefits are subject to our Asset Transfer Program (ATP) feature. The ATP helps
us manage our financial exposure in connection with providing certain
guaranteed benefits, by using predetermined mathematical formulas to move
account value between the EQ/Ultra Conservative Strategy Portfolio (an
investment option utilized solely by the ATP) and the other Portfolios offered
under those contracts. You should be aware that operation of the predetermined
mathematical formulas underpinning the ATP has the potential to adversely
impact the Portfolios, including their performance, risk profile and expenses.
This means that Portfolio investments in contracts with no ATP feature, such as
yours, could still be adversely impacted. Particularly during times of high
market volatility, if the ATP triggers substantial asset flows into and out of
a Portfolio, it could have the following effects on all contract owners
invested in that Portfolio:
(a)By requiring a Portfolio sub-adviser to buy and sell large amounts of
securities at inopportune times, a Portfolio's investment performance and
the ability of the sub-adviser to fully implement the Portfolio's
investment strategy could be negatively affected; and
(b)By generating higher turnover in its securities or other assets than it
would have experienced without being impacted by the ATP, a Portfolio
could incur higher operating expense ratios and transaction costs than
comparable funds. In addition, even Portfolios structured as
funds-of-funds that are not available for investment by contract owners
who are subject to the ATP could also be impacted by the ATP if those
Portfolios invest in underlying funds that are themselves subject to
significant asset turnover caused by the ATP. Because the ATP formulas
generate unique results for each contract, not all contract owners who
are subject to the ATP will be affected by operation of the ATP in the
same way. On any particular day on which the ATP is activated, some
contract owners may have a portion of their account value transferred to
the EQ/Ultra Conservative Strategy Portfolio investment option and others
may not. If the ATP causes significant transfers of total account value
out of one or more Portfolios, any resulting negative effect on the
performance of those Portfolios will be experienced to a greater extent
by a contract owner (with or without the ATP) invested in those
Portfolios whose account value was not subject to the transfers.
--------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP
TRUST
CLASS B SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Seeks to achieve high total return through . AXA Equitable Funds Management
MULTI-SECTOR BOND a combination of current income and Group, LLC
capital appreciation.
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP GROWTH capital. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP VALUE capital. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/AGGRESSIVE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(1)/ appreciation. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/CONSERVATIVE Seeks to achieve a high level of current . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(2)/ income. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
Seeks to achieve current income and . AXA Equitable Funds Management (check mark)
EQ/CONSERVATIVE-PLUS growth of capital, with a greater Group, LLC
ALLOCATION/(*)(3)/ emphasis on current income.
--------------------------------------------------------------------------------------------------------------------------
EQ/MODERATE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(4)/ appreciation and current income. Group, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/MODERATE-PLUS Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
ALLOCATION/(*)(5)/ appreciation and current income, with a Group, LLC
greater emphasis on capital appreciation.
--------------------------------------------------------------------------------------------------------------------------
TARGET 2025 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
--------------------------------------------------------------------------------------------------------------------------
TARGET 2035 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
--------------------------------------------------------------------------------------------------------------------------
|
20
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP
TRUST
CLASS B SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
TARGET 2045 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
----------------------------------------------------------------------------------------------------------------------
TARGET 2055 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
|
----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
1290 VT CONVERTIBLE Seeks a high level of total return. . AXA Equitable Funds Management
SECURITIES Group, LLC
. Palisade Capital Management, L.L.C.
----------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to achieve total return from long- . AXA Equitable Funds Management
DYNAMIC ALLOCATION term capital appreciation and income. Group, LLC
. DoubleLine Capital LP
----------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to maximize current income and . AXA Equitable Funds Management
OPPORTUNISTIC BOND total return. Group, LLC
. DoubleLine Capital LP
----------------------------------------------------------------------------------------------------------------------
1290 VT EQUITY Seeks a combination of growth and . AXA Equitable Funds Management
INCOME income to achieve an above-average and Group, LLC
consistent total return. . Barrow, Hanley, Mewhinney & Strauss
LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO Seeks to achieve capital appreciation. . AXA Equitable Funds Management
MERGERS & Group, LLC
ACQUISITIONS . GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO SMALL Seeks to maximize capital appreciation. . AXA Equitable Funds Management
COMPANY VALUE Group, LLC
. GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT SMARTBETA Seeks to achieve long-term capital . AXA Equitable Funds Management
EQUITY appreciation. Group, LLC
. AXA Rosenberg Investment
Management, LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT SOCIALLY Seeks to achieve long-term capital . AXA Equitable Funds Management
RESPONSIBLE appreciation. Group, LLC
. BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - Seeks long-term capital appreciation and . AXA Equitable Funds Management
ALT 20 current income. Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/400 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(6)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/500 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(7)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/2000 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(8)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
|
21
ABOUT THE PORTFOLIOS OF THE TRUSTS
-------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------
EQ/AB SMALL CAP Seeks to achieve long-term growth of . AllianceBernstein L.P.
GROWTH/(*)(9)/ capital. . AXA Equitable Funds Management
Group, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/AMERICAN CENTURY Seeks to achieve long-term capital . American Century Investment
MID CAP VALUE growth. Income is a secondary objective. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC Seeks to achieve capital appreciation and . AXA Equitable Funds Management
VALUE EQUITY secondarily, income. Group, LLC
. BlackRock Investment Management, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of . AXA Equitable Funds Management
RESEARCH capital. Group, LLC
. Capital Guardian Trust Company
-------------------------------------------------------------------------------------------------------------------------
EQ/CLEARBRIDGE Seeks to achieve long-term capital . AXA Equitable Funds Management
LARGE CAP growth. Group, LLC
GROWTH/(*)(10)/ . ClearBridge Investments, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 3000(R) Group, LLC
Index, including reinvestment of dividends,
at a risk level consistent with that of the
Russell 3000(R) Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX Seeks to achieve a total return before . AXA Equitable Funds Management
expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays U.S. . SSgA Funds Management, Inc.
Intermediate Government/Credit Bond Index,
including reinvestment of dividends, at a risk
level consistent with that of the Bloomberg
Barclays U.S. Intermediate Government/
Credit Bond Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total . AXA Equitable Funds Management
return performance of the Standard & Group, LLC
Poor's 500 Composite Stock Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Standard & Poor's 500 Composite Stock
Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/FIDELITY Seeks to achieve long-term capital . AXA Equitable Funds Management
INSTITUTIONAL appreciation. Group, LLC
AM(R) LARGE CAP . FIAM LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN RISING Seeks long-term capital appreciation. . AXA Equitable Funds Management
DIVIDENDS Preservation of capital, while not a goal, Group, LLC
is also an important consideration. . Franklin Advisers, Inc.
-------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN Seeks a high level of current income. A . AXA Equitable Funds Management
STRATEGIC INCOME secondary goal is long-term capital Group, LLC
appreciation. . Franklin Mutual Advisers, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL BOND PLUS Seeks to achieve capital growth and . AXA Equitable Funds Management
current income. Group, LLC
. BlackRock Investment Management, LLC
. Wells Fargo Asset Management
(International) LLC and
. Wells Capital Management, Inc.
-------------------------------------------------------------------------------------------------------------------------
|
22
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL EQUITY Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk- Group, LLC
VOLATILITY/(*)(11)/ adjusted returns and managing volatility . BlackRock Investment Management, LLC
in the Portfolio. . Morgan Stanley Investment
Management Inc.
. OppenheimerFunds, Inc.
----------------------------------------------------------------------------------------------------------------------------
EQ/GOLDMAN SACHS Seeks to achieve long-term capital . AXA Equitable Funds Management
MID CAP VALUE appreciation. Group, LLC
. Goldman Sachs Asset Management, L.P.
----------------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Seeks to achieve a total return before . AXA Equitable Funds Management
GOVERNMENT BOND expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays U.S. . SSgA Funds Management, Inc.
Intermediate Government Bond Index,
including reinvestment of dividends, at a risk
level consistent with that of the Bloomberg
Barclays U.S. Intermediate Government
Bond Index.
----------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
CORE MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(12)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . EARNEST Partners, LLC
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
. Federated Global Investment
Management Corp.
----------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve a total return (before . AllianceBernstein L.P.
EQUITY INDEX expenses) that approximates the total . AXA Equitable Funds Management
return performance of a composite index Group, LLC
comprised of 40% DJ Euro STOXX 50
Index, 25% FTSE 100 Index, 25% TOPIX
Index, and 10% S&P/ASX 200 Index,
including reinvestment of dividends, at a
risk level consistent with that of the
composite index.
----------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(13)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to provide current income and long- . AXA Equitable Funds Management (check mark)
VALUE MANAGED term growth of income, accompanied by Group, LLC
VOLATILITY/(*)(14)/ growth of capital with an emphasis on . BlackRock Investment Management, LLC
risk-adjusted returns and managing . Harris Associates L.P.
volatility in the Portfolio.
----------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK Seeks to achieve capital growth and . AXA Equitable Funds Management
income. Group, LLC
. Invesco Advisers, Inc.
----------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO GLOBAL Seeks to achieve total return through . AXA Equitable Funds Management
REAL ESTATE growth of capital and current income. Group, LLC
. Invesco Advisers, Inc.
----------------------------------------------------------------------------------------------------------------------------
|
23
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO Seeks to achieve long-term growth of . AXA Equitable Funds Management
INTERNATIONAL capital. Group, LLC
GROWTH . Invesco Advisers, Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/IVY ENERGY Seeks to provide capital growth and . AXA Equitable Funds Management
appreciation. Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/IVY MID CAP Seeks to provide growth of capital. . AXA Equitable Funds Management
GROWTH Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/IVY SCIENCE AND Seeks to provide growth of capital. . AXA Equitable Funds Management
TECHNOLOGY Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/JANUS Seeks to achieve capital growth. . AXA Equitable Funds Management
ENTERPRISE/(*)(15)/ Group, LLC
. Janus Capital Management LLC
------------------------------------------------------------------------------------------------------------------------
EQ/JPMORGAN VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management
OPPORTUNITIES appreciation. Group, LLC
. J.P. Morgan Investment
Management Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP CORE Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(16)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . Capital Guardian Trust Company
. Vaughan Nelson Investment Management
. Thornburg Investment Management,
Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Growth Index, including reinvestment of
dividends at a risk level consistent with
the Russell 1000(R) Growth Index.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to provide long-term capital growth . AXA Equitable Funds Management (check mark)
MANAGED with an emphasis on risk-adjusted returns Group, LLC
VOLATILITY/(*)(17)/ and managing volatility in the Portfolio. . BlackRock Investment Management, LLC
. HS Management Partners, LLC
. Loomis, Sayles & Company, L.P.
. Polen Capital Management, LLC
. T. Rowe Price Associates, Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Value Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 1000(R) Value Index.
------------------------------------------------------------------------------------------------------------------------
|
24
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(18)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD EMERGING Seeks to achieve long-term capital . AXA Equitable Funds Management
MARKETS EQUITY appreciation. Group, LLC
. Lazard Asset Management LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/LOOMIS SAYLES Seeks to achieve capital appreciation. . AXA Equitable Funds Management
GROWTH/(*)(19) / Group, LLC
. Loomis, Sayles & Company, L.P.
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
GROWTH . Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS(R) Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
VALUE . Massachusetts Financial Services
Company
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total return . AXA Equitable Funds Management
performance of the Standard & Poor's Group, LLC
MidCap 400(R) Index, including reinvestment
of dividends, at a risk level consistent with
that of the Standard & Poor's MidCap 400(R)
Index.
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk Group, LLC
VOLATILITY/(*)(20)/ adjusted returns and managing volatility in . BlackRock Investment Management, LLC
the Portfolio. . Diamond Hill Capital Management,
Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET/(+)/ Seeks to obtain a high level of current . AXA Equitable Funds Management
income, preserve its assets and maintain Group, LLC
liquidity. . The Dreyfus Corporation
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks to achieve maximum real return, . AXA Equitable Funds Management
consistent with preservation of capital Group, LLC
and prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO TOTAL Seeks to achieve maximum total return, . AXA Equitable Funds Management
RETURN consistent with preservation of capital Group, LLC
and prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA Seeks to generate a return in excess of . AXA Equitable Funds Management
SHORT BOND traditional money market products while Group, LLC
maintaining an emphasis on preservation . Pacific Investment Management
of capital and liquidity. Company LLC
---------------------------------------------------------------------------------------------------------------------------
|
25
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST
CLASS IB SHARES INVESTMENT ADVISER (AND VOLATILITY
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------
EQ/QUALITY BOND PLUS Seeks to achieve high current income . AllianceBernstein L.P.
consistent with moderate risk to capital. . AXA Equitable Funds Management
Group, LLC
. Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY Seeks to replicate as closely as possible . AllianceBernstein L.P.
INDEX (before expenses) the total return of the . AXA Equitable Funds Management
Russell 2000(R) Index. Group, LLC
---------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE Seeks to achieve long-term capital . AXA Equitable Funds Management
GROWTH STOCK appreciation and secondarily, income. Group, LLC
. T. Rowe Price Associates, Inc.
---------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND Seeks to achieve total return through . AXA Equitable Funds Management
INCOME capital appreciation with income as a Group, LLC
secondary consideration. . UBS Asset Management (Americas) Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
AGGRESSIVE EQUITY capital. . AXA Equitable Funds Management
Group, LLC
. ClearBridge Investments, LLC
. Scotia Institutional Asset
Management US, Ltd.
. T. Rowe Price Associates, Inc.
. Westfield Capital Management
Company, L.P.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER CORE Seeks to achieve a balance of high current . AXA Equitable Funds Management
BOND income and capital appreciation, Group, LLC
consistent with a prudent level of risk. . BlackRock Financial Management, Inc.
. DoubleLine Capital LP
. Pacific Investment Management
Company LLC
. SSgA Funds Management, Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . AllianceBernstein L.P.
CAP GROWTH capital. . AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Franklin Advisers, Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . American Century Investment
CAP VALUE capital. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Diamond Hill Capital Management,
Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
TECHNOLOGY capital. . Allianz Global Investors U.S. LLC
. AXA Equitable Funds Management
Group, LLC
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------
|
26
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE FUNDS
(INVESCO VARIABLE
INSURANCE INVESTMENT ADVISER
FUNDS) -- SERIES II (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------------
INVESCO V.I. MID The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP CORE EQUITY capital.
FUND
------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP EQUITY FUND capital.
|
-------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS
INSURANCE SERIES(R) INVESTMENT ADVISER
PORTFOLIO NAME -- (AND SUB-ADVISER(S), AS
CLASS 4 SHARES OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
GLOBAL SMALL The fund's investment objective is to provide long-term . Capital Research and
CAPITALIZATION growth of capital. Management Company
FUND
-------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital Research and
appreciation. Management Company
|
-------------------------------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE INSURANCE
PRODUCTS (VIP) - INVESTMENT ADVISER
SERVICE CLASS 2 (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks high total return through a combination of current . Fidelity Management &
GROWTH & INCOME income and capital appreciation. Research Company (FMR)
PORTFOLIO
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID Seeks long-term growth of capital. . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
|
----------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE INSURANCE
PRODUCTS TRUST --
CLASS 2 INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------
FRANKLIN MUTUAL Seeks capital appreciation. Its secondary goal is income. . Franklin Mutual Advisers,
SHARES VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
FRANKLIN SMALL CAP Seeks long-term total return. . Franklin Mutual Advisers,
VALUE VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
TEMPLETON Seeks long-term capital appreciation. . Templeton Asset
DEVELOPING Management Ltd.
MARKETS VIP FUND
----------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with preservation of . Franklin Advisers, Inc.
BOND VIP FUND capital. Capital appreciation is a secondary consideration.
----------------------------------------------------------------------------------------------------------------
TEMPLETON GROWTH Seeks long-term capital growth. . Templeton Global Advisors
VIP FUND Limited
----------------------------------------------------------------------------------------------------------------
|
IVY VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
IVY VIP HIGH INCOME To seek to provide total return through a combination of . Ivy Investment Management
high current income and capital appreciation. Company (IICO)
-------------------------------------------------------------------------------------------------------------
IVY VIP SMALL CAP To seek to provide growth of capital. . Ivy Investment Management
GROWTH Company (IICO)
|
--------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE TRUSTS -- INVESTMENT ADVISER
SERVICE CLASS (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
--------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS The fund's investment objective is to seek capital . Massachusetts Financial
TRUST SERIES appreciation. Services Company
--------------------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital . Massachusetts Financial
MASSACHUSETTS appreciation. Services Company
INVESTORS GROWTH
STOCK PORTFOLIO
|
----------------------------------------------------------------------------------------------------------
PIMCO VARIABLE
INSURANCE TRUST -- INVESTMENT ADVISER
ADVISOR CLASS (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
----------------------------------------------------------------------------------------------------------
PIMCO Seeks maximum real return consistent with prudent . Pacific Investment
COMMODITYREALRETURN(R) investment management. Management Company LLC
STRATEGY PORTFOLIO
----------------------------------------------------------------------------------------------------------
|
T. ROWE PRICE INVESTMENT ADVISER
EQUITY SERIES, INC. (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
T. ROWE PRICE Seeks a high level of dividend income and long-term . T. Rowe Price Associates,
EQUITY INCOME capital growth primarily through investments in stocks. Inc.
PORTFOLIO - II
-------------------------------------------------------------------------------------------------------------
|
27
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------
VANECK VIP TRUST -- INVESTMENT ADVISER
SERVICE CLASS (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
---------------------------------------------------------------------------------------------------------------
VANECK VIP GLOBAL Seeks long-term capital appreciation by investing . Van Eck Associates
HARD ASSETS FUND primarily in hard asset securities. Income is a secondary Corporation
consideration.
---------------------------------------------------------------------------------------------------------------
|
(+)The Portfolio operates as a "government money market fund." The Portfolio
will invest at least 99.5% of its total assets in U.S. government
securities, cash, and/or repurchase agreements that are fully collateralized
by U.S. government securities or cash.
(*)The chart below reflects the variable investment option's name in effect
until on or about May 20, 2019. The number in the "FN" column corresponds
with the number contained in the table above.
-------------------------------------------------
FN VARIABLE INVESTMENT OPTION NAME
-------------------------------------------------
(1) AXA Aggressive Allocation
-------------------------------------------------
(2) AXA Conservative Allocation
-------------------------------------------------
(3) AXA Conservative-Plus Allocation
-------------------------------------------------
(4) AXA Moderate Allocation
-------------------------------------------------
(5) AXA Moderate-Plus Allocation
-------------------------------------------------
(6) AXA 400 Managed Volatility
-------------------------------------------------
(7) AXA 500 Managed Volatility
-------------------------------------------------
(8) AXA 2000 Managed Volatility
-------------------------------------------------
(9) AXA/AB Small Cap Growth
-------------------------------------------------
(10) AXA/ClearBridge Large Cap Growth
-------------------------------------------------
(11) AXA Global Equity Managed Volatility
-------------------------------------------------
(12) AXA International Core Managed Volatility
-------------------------------------------------
(13) AXA International Managed Volatility
-------------------------------------------------
(14) AXA International Value Managed Volatility
-------------------------------------------------
(15) AXA/Janus Enterprise
-------------------------------------------------
(16) AXA Large Cap Core Managed Volatility
-------------------------------------------------
(17) AXA Large Cap Growth Managed Volatility
-------------------------------------------------
(18) AXA Large Cap Value Managed Volatility
-------------------------------------------------
(19) AXA/Loomis Sayles Growth
-------------------------------------------------
(20) AXA Mid Cap Value Managed Volatility
-------------------------------------------------
|
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.).
28
ABOUT THE PORTFOLIOS OF THE TRUSTS
5. Determining your policy's value
YOUR POLICY ACCOUNT VALUE
As set forth earlier in this prospectus, we deduct certain charges from each
premium payment you make. We credit the rest of each premium payment to your
"policy account value." You instruct us to allocate your policy account value
to one or more of the policy's investment options indicated on the front cover
of this prospectus.
Your policy account value is the total of (i) your amounts in our variable
investment options, (ii) your amounts in our guaranteed interest option (other
than in (iii)), and (iii) any amounts that we are holding to secure policy
loans that you have taken (including any interest on those amounts which has
not yet been allocated to the variable investment options). See "Borrowing from
your policy" later in this prospectus. Your "net policy account value" is the
total of (i) and (ii) above, plus any interest credited on loaned amounts,
minus any interest accrued on outstanding loans and minus any "restricted"
amounts that we hold in the guaranteed interest option as a result of any
payment received under a living benefits rider. (Your policy and other
supplemental material may refer to the account that holds the amounts in
(ii) and (iii) above as our "Guaranteed Interest Account.") Your policy account
value is subject to certain charges discussed in "Risk/benefit summary: Charges
and expenses you will pay" earlier in this prospectus.
YOUR POLICY ACCOUNT VALUE WILL BE CREDITED WITH THE SAME RETURNS AS ARE
ACHIEVED BY THE PORTFOLIOS THAT YOU SELECT AND INTEREST CREDITED ON AMOUNTS IN
THE GUARANTEED INTEREST OPTION, AND IS REDUCED BY THE AMOUNT OF CHARGES WE
DEDUCT UNDER THE POLICY.
YOUR POLICY'S VALUE IN OUR VARIABLE INVESTMENT OPTIONS. We invest the policy
account value that you have allocated to any variable investment option in
shares of the corresponding Portfolio. Your value in each variable investment
option is measured by "units."
The number of your units in any variable investment option does not change,
absent an event or transaction under your policy that involves moving assets
into or out of that option. Whenever any amount is withdrawn or otherwise
deducted from one of your policy's variable investment options, we "redeem"
(cancel) the number of units that has a value equal to that amount. This can
happen, for example, when all or a portion of monthly deductions and
transaction-based charges are allocated to that option, or when loans,
transfers, withdrawals and surrenders are made from that option. Similarly, you
"purchase" additional units having the same value as the amount of any premium
(after deduction of any premium charge), loan repayment, or transfer that you
allocate to that option.
The value of each unit will increase or decrease each business day, as though
you had invested in the corresponding Portfolio's shares directly (and
reinvested all dividends and distributions from the Portfolio in additional
Portfolio shares). On any day, your value in any variable investment option
equals the number of units credited to your policy under that option,
multiplied by that day's value for one such unit. The mortality and expense
risk charge mentioned earlier in this prospectus is calculated as a percentage
of the value you have in the variable investment options and deducted monthly
from your policy account based on your deduction allocations unless the paid up
death benefit guarantee is in effect. For more information on how we allocate
charges, see "How we allocate charges among your investment options" earlier in
this prospectus.
YOUR POLICY'S VALUE IN OUR GUARANTEED INTEREST OPTION. Your policy's value in
our guaranteed interest option includes: (i) any amounts that have been
allocated to that option, based on your request, and (ii) any "restricted"
amounts that we hold in that option as a result of your election to receive a
living benefit. See "Your option to receive a terminal illness living benefit"
later in this prospectus. We credit all of such amounts with interest at rates
we declare from time to time. We guarantee that these rates will not be less
than a 2% effective annual rate.
Amounts may be allocated to or removed from your policy's value in our
guaranteed interest option for the same purposes as described earlier in this
prospectus for the variable investment options. We credit your policy with a
number of dollars in that option that equals any amount that is being allocated
to it. Similarly, if amounts are being removed from your guaranteed interest
option for any reason, we reduce the amount you have credited to that option on
a dollar-for-dollar basis.
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DETERMINING YOUR POLICY'S VALUE
6. Transferring your money among our investment options
TRANSFERS YOU CAN MAKE
YOU CAN TRANSFER AMONG OUR VARIABLE INVESTMENT OPTIONS AND INTO OUR GUARANTEED
INTEREST OPTION.
After your policy's Allocation Date, you can transfer amounts from one
investment option to another. Unless the paid up death benefit guarantee is in
effect, there are no restrictions on transfers into the guaranteed interest
option. However, transfers out of the guaranteed interest option and among our
variable investment options are more limited. Currently, the total of all
transfers you make on the same day must be at least $500; except that you may
transfer your entire balance in an investment option, even if it is less than
$500. We reserve the right to lower this $500 limit upon written notice to you.
We also reserve the right to restrict transfers among variable investment
options and transfers out of the guaranteed interest option as described in
your policy, including limitations on the number, frequency, or dollar amount
of transfers.
Certain transfer restrictions apply if the paid up death benefit guarantee is
in effect. For more information, see "Paid up death benefit guarantee" in "More
information about policy features and benefits." If your policy is placed on
loan extension, we will transfer any remaining policy account value in the
variable investment options to the guaranteed interest option. No transfers
from the guaranteed interest option are permitted thereafter.
Please see "Investment options within your policy" in "Risk/benefit summary:
Policy features, benefits and risks" for more information about your role in
managing your allocations.
CURRENT UNRESTRICTED TRANSFERS OUT OF THE GUARANTEED INTEREST OPTION. We are
relaxing our policy rules so that, beginning on the business day after the
Allocation Date and thereafter, you may transfer any amount of unloaned policy
account value out of the guaranteed interest option to any other investment
option until further notice. If we decide to change our limitations on
transfers out of the guaranteed interest option, we will provide you with
notice of at least 30 days.
See the "How to make transfers" section below on how you can request a
transfer. In general, transfers take effect on the date the request is
received. However, any written, telephone, Internet or facsimile transaction
requests received after 4:00 p.m. (Eastern Time) take effect the next business
day.
Please note that the ability to make unrestricted transfers from the guaranteed
interest option does not apply to any amounts that we are holding as collateral
for a policy loan or as "restricted" amounts as a result of your election to
receive a living benefit, if available under your policy. In addition, if you
elect to transfer account value to the Market Stabilizer Option(R) ("MSO"), if
available under your policy, there must be sufficient funds remaining in the
guaranteed interest option to cover the Charge Reserve Amount. Finally, there
may be a charge for making this transfer. Please see "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus for more
information about charges for this transfer.
If the policy is on loan extension, transfers out of the guaranteed interest
option are not permitted.
DISRUPTIVE TRANSFER ACTIVITY. We reserve the right to limit access to the
services described below if we determine that you are engaged in a disruptive
transfer activity, such as "market timing" (see "Disruptive transfer activity"
in "More information about other matters").
HOW TO MAKE TRANSFERS
INTERNET TRANSFERS. Generally, you can make transfers over the Internet if you
are the owner of the policy. You may do this by visiting our axa.com or
us.axa.com (for those outside the U.S.) websites and registering for online
account access. This service may not always be available. The restrictions
relating to transfers are described below.
ONLINE TRANSFERS. You can make online transfers by following one of two
procedures:
. For individually owned policies for which you are the owner, by logging
onto our website, described under "By Internet" in "How to reach us"
earlier in this prospectus; or
. For corporation and trust owned policies, we require a special
authorization form to obtain access. The form is available on our website
www.axa.us.com or us.axa.com for those outside the U.S., or by contacting
our Administrative Office.
For more information, see "Telephone and Internet requests" later in this
prospectus. We allow only one request for transfers each day (although that
request can cover multiple transfers). If you are unable to reach us via our
website, you should send a written transfer request to our Administrative
Office.
TRANSFERS THROUGH OUR ADMINISTRATIVE OFFICE. You may submit a written request
for a transfer to our Administrative Office. We require a written request for
jointly owned policies.
OUR AUTOMATIC TRANSFER SERVICE
We offer an automatic transfer service. This service allows you to gradually
allocate amounts to the variable investment options by periodically
transferring approximately the same dollar amount to the variable investment
options you select. This will cause you to purchase more units if the unit's
value is low, and fewer units if the unit's value is high. Therefore, you may
achieve a lower average cost per unit over the long term.
USING THE AUTOMATIC TRANSFER SERVICE DOES NOT GUARANTEE THAT YOU WILL EARN A
PROFIT OR BE PROTECTED AGAINST LOSSES.
Our automatic transfer service (also referred to as our "dollar cost averaging
service") enables you to make automatic monthly transfers from the EQ/Money
Market option to our other variable investment options. You may elect the
automatic transfer service with your policy application or at any later time
(provided you are not using the asset rebalancing service described below). At
least $5,000 must be allocated to the EQ/Money Market option to begin using the
automatic
30
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
transfer service. You can choose up to eight other variable investment options
to receive the automatic transfers, but each transfer to each option must be at
least $50.
This service terminates when the EQ/Money Market option is depleted. Also, this
service will automatically terminate if you elect the paid up death benefit
guarantee or your policy is placed on loan extension. You can also cancel the
automatic transfer service at any time by sending a written request to our
Administrative Office. You may not simultaneously participate in the asset
rebalancing service and the automatic transfer service.
We will not deduct a transfer charge for any transfer made in connection with
our automatic transfer service.
OUR ASSET REBALANCING SERVICE
You may wish us to periodically redistribute the amounts you have in our
variable investment options so that the relative amount of your policy account
value in each variable option is restored to an asset allocation that you
select. You can accomplish this automatically through our asset rebalancing
service. The rebalancing may be at quarterly, semiannual, or annual intervals.
You may specify asset allocation percentages for all available variable
investment options up to a maximum of 50. The allocation percentage you specify
for each variable investment option selected must be at least 2% (whole
percentages only) of the total value you hold under the variable investment
options, and the sum of the percentages must equal 100%. You may not
simultaneously participate in the asset rebalancing service and the automatic
transfer service (discussed above).
You may request the asset rebalancing service in your policy application or at
any later time by completing our enrollment form. At any time, you may also
terminate the rebalancing program or make changes to your allocations under the
program. Once enrolled in the rebalancing service, it will remain in effect
until you instruct us in writing to terminate the service. Requesting an
investment option transfer while enrolled in our asset rebalancing service will
not automatically change your allocation instructions for rebalancing your
account value. This means that upon the next scheduled rebalancing, we will
transfer amounts among your investment options pursuant to the allocation
instructions previously on file for your rebalancing service. Changes to your
allocation instructions for the rebalancing service (or termination of your
enrollment in the service) must be in writing and sent to our Administrative
Office.
We will not deduct a transfer charge for any transfer made in connection with
our asset rebalancing service. Also, this service will automatically terminate
if you elect the paid up death benefit guarantee or your policy is placed on
loan extension. Certain investment options, such as the guaranteed interest
option, are not available investment options with the asset rebalancing service.
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TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
7. Accessing your money
BORROWING FROM YOUR POLICY
You may borrow up to 90% of the cash surrender value, less any outstanding loan
and accrued loan interest before the policy year in which the insured reaches
age 75 (100% thereafter). In your policy, the cash surrender value is equal to
the difference between your policy account value and any surrender charges that
are in effect under your policy. However, the amount you can borrow will be
reduced by any amount that we hold on a "restricted" basis following your
receipt of a terminal illness living benefits payment, as well as by any other
loans (and accrued loan interest) you have outstanding and reduced for any
monthly payments under the Long Term Care Services/SM/ Rider. See "More
information about policy features and benefits: Other benefits you can add by
rider: Long Term Care Services/SM/ Rider" later in this prospectus. See "Your
option to receive a terminal illness living benefit" below. The minimum loan
amount generally is $500.
YOU CAN USE POLICY LOANS TO OBTAIN FUNDS FROM YOUR POLICY WITHOUT SURRENDER
CHARGES OR, IN MOST CASES, PAYING CURRENT INCOME TAXES. HOWEVER, THE BORROWED
AMOUNT IS NO LONGER CREDITED WITH THE INVESTMENT RESULTS OF ANY OF OUR
INVESTMENT OPTIONS UNDER THE POLICY.
When you take a policy loan, we remove an amount equal to the loan from one or
more of your investment options and hold it as collateral for the loan's
repayment. We hold this loan collateral under the same terms and conditions as
apply to amounts supporting our guaranteed interest option, with several
exceptions:
. you cannot make transfers or withdrawals of the collateral;
. we expect to credit different rates of interest to loan collateral than we
credit under our guaranteed interest option;
. we do not count the collateral when we compute our customer loyalty credit;
and
. the collateral is not available to pay policy charges.
When you request a loan, you should tell us how much of the loan collateral you
wish to have taken from any amounts you have in each of our investment options.
If you do not give us directions (or if we are making the loan automatically to
cover unpaid loan interest), we will take the loan from your investment options
in the same proportion as we are taking monthly deductions for charges. If that
is not possible, we will take the loan from your investment options in
proportion to your value in each. If the paid up death benefit guarantee is in
effect and you do not give us directions or the directions cannot be followed
due to insufficient funds (or we are making the loan automatically to cover
unpaid loan interest), we will take the loan from your investment options in
proportion to your value in each.
LOAN INTEREST WE CHARGE. The interest we charge on a policy loan accrues daily
at an adjustable interest rate. We determine the rate at the beginning of each
year of your policy and that rate applies to all policy loans that are
outstanding at any time during the year. The maximum rate is the greater of
(a) 3% or (b) the "Monthly Average Corporate" yield published in Moody's
Corporate Bond Yield Averages for the month that ends two months before the
interest rate is set. (If that average is no longer published, we will use
another average, as the policy provides.) Currently, the loan interest rate is
3% for the first ten policy years and 2% thereafter. We will notify you of the
current loan interest rate when you apply for a loan and annually on the annual
report, and will notify you in advance of any rate increase.
Loan interest payments are due on each policy anniversary. If not paid when
due, we automatically add the interest as a new policy loan.
INTEREST THAT WE CREDIT ON LOAN COLLATERAL. Under our current rules, the annual
interest rate we credit on your loan collateral during any of your policy's
first ten years will be 1% less than the rate we are then charging you for
policy loan interest, and, beginning in the policy's 11th year, equal to the
loan interest rate. The elimination of the rate differential is not guaranteed,
however. Accordingly, we have discretion to increase the rate differential for
any period, including under policies that are already in force (and may have an
outstanding loan). We do guarantee that the annual rate of interest credited on
your loan collateral will never be less than 2% and that the differential will
not exceed 1%.
We credit interest on your loan collateral daily. On each anniversary of your
policy (or when your policy loan is fully repaid) we transfer that interest to
your policy's investment options in the same proportions as if it were a
premium payment. If your policy is on loan extension, we transfer the interest
to the unloaned guaranteed interest option. If the paid up death benefit
guarantee is in effect, we transfer the interest to the investment options in
accordance with your allocation instructions on record.
EFFECTS OF A POLICY LOAN. If not repaid, the aggregate amount of the
outstanding loan and any accrued loan interest will reduce your cash surrender
value and your life insurance benefit that might otherwise be payable. We will
deduct any outstanding policy loan and accrued loan interest from your policy's
proceeds if you do not pay it back. Also, a loan can reduce the length of time
that your insurance remains in force, because the amount we set aside as loan
collateral cannot be used to pay charges as they become due. A loan can also
cause any paid up death benefit guarantee to terminate or may cause the
no-lapse guarantee to become unavailable.
A policy loan, repaid or not, has a permanent effect on your cash surrender
value. This results because the investment results of each investment option
apply only to the amounts remaining in such investment options. The longer the
loan is outstanding, the greater the effect on your cash surrender value is
likely to be.
Even if a loan is not taxable when made, it may later become taxable, for
example, upon termination or surrender. A policy loan can affect your policy
account value and death benefit, even if you have repaid the loan. See "Tax
information" below for a discussion of the tax consequences of a policy loan.
PAYING OFF YOUR LOAN. You can repay all or part of your loan at any time. We
normally assume that payments you send us are premium
32
ACCESSING YOUR MONEY
payments. Therefore, you must submit instructions with your payment indicating
that it is a loan repayment. If you send us more than all of the loan principal
and interest you owe, we will treat the excess as a premium payment. Any
payment received while the paid up death benefit guarantee is in effect, the
policy is on loan extension or you are receiving monthly payments under the
Long Term Care Services/SM/ Rider will be applied as a loan repayment (or
refunded if it is in excess of the loan amount and outstanding interest).
When you send us a loan repayment, we will transfer an amount equal to such
repayment from your loan collateral back to the investment options under your
policy. First we will restore any amounts that, before being designated as loan
collateral, had been in the guaranteed interest option under your policy. We
will allocate any additional repayments among the investment options as you
instruct; or, if you don't instruct us, in the same proportion as if they were
premium payments.
If you are to receive monthly benefit payments under the Long Term Care
Services/SM/ Rider, a pro rata portion of the loan and accrued loan interest to
that date will be deducted from the monthly benefit payment as a loan
repayment. This will reduce the monthly payment otherwise payable to you under
the rider.
If the paid up death benefit guarantee is in effect, any loan repayment
allocated to the unloaned portion of the guaranteed interest option will be
limited to an amount so that the value in the unloaned portion of the
guaranteed interest option does not exceed 25% of the amount that you have in
your unloaned policy account value. Any portion of the loan repayment that we
cannot allocate to the guaranteed interest option will be allocated to the
variable investment options in proportion to any amounts that you specified for
that particular loan repayment. If you did not specify, we will allocate that
portion of the loan repayment in proportion to the paid up death benefit
guarantee allocation percentages for the variable investment options on record.
LOAN EXTENSION (FOR GUIDELINE PREMIUM TEST POLICIES ONLY)
Loan extension will protect against lapse of your policy due to an outstanding
policy loan in certain circumstances. There is no additional charge for the
loan extension feature. Your policy will automatically be placed on "loan
extension," if at the beginning of any policy month on or following the policy
anniversary nearest the insured person's 75th birthday, but not earlier than
the 20th policy anniversary, all of the following conditions apply:
. The net policy account value is not sufficient to cover the monthly
deductions then due;
. The amount of any outstanding policy loan and accrued loan interest is
greater than the larger of (a) the current base policy face amount, or
(b) the initial base policy face amount;
. You have selected Death Benefit Option A;
. You have not received a payment under either the living benefits rider or
the Long Term Care Services/SM/ Rider;
. The policy is not in a grace period; and
. No current or future distributions will be required to be paid from the
policy to maintain its qualification as "life insurance" under the Internal
Revenue Code.
When a policy goes on loan extension, all of the following will apply:
. We will collect monthly deductions due under the policy up to the amount in
the unloaned policy account value.
. Any policy account value that is invested in our variable investment
options will automatically be transferred to our guaranteed interest
option; and no transfers out of the guaranteed interest option may
thereafter be made into any of our variable investment options.
. Loan interest will continue to accrue and we will send you a notice of any
loan interest due on or about each policy anniversary. If the loan interest
is not paid when due, it will be added to the outstanding loan balance.
. No additional loans or partial withdrawals may be requested.
. No changes in face amount or death benefit option may be requested.
. No additional premium payments will be accepted. Any payments received will
be applied as loan repayments. If a loan repayment is made, the repaid
amount will become part of the unloaned guaranteed interest option. Any
payment in excess of the outstanding loan balance will be refunded to you.
. All additional benefit riders and endorsements will terminate, including
the Long Term Care Services/SM/ Rider.
. No future allocations or transfers to the investment options will be
accepted.
. The paid up death benefit guarantee if applicable, may not be elected.
. The policy will not thereafter lapse for any reason.
On the policy anniversary when the insured attains age 75 and if such policy
has been in force for 20 years, and each month thereafter, we will determine
whether the policy is on loan extension. You will be sent a letter explaining
the transactions that are allowed and prohibited while a policy is on loan
extension. Once a policy is on loan extension, it will remain on loan extension
during the lifetime of the insured unless the policy is surrendered.
If your policy is on loan extension, the death benefit payable under the policy
is the greatest of (a), (b) and (c):
(a)The greater of the policy account value or the outstanding loan and accrued
loan interest on the date of the insured's death, multiplied by a percentage
shown in your policy;
(b)The outstanding loan and accrued loan interest, plus $10,000; or
(c)The base policy face amount on the date of death.
Other than as outlined above, all terms and conditions of your policy will
continue to apply as if your policy is not on loan extension. If your policy is
on loan extension, due to an absence of Internal Revenue Service guidance on
such features, there is some uncertainty as to how the tax law might be applied
in the future. For example, it is possible that in such circumstances, some or
the entire outstanding loan could be treated as a distribution from the policy.
33
ACCESSING YOUR MONEY
MAKING WITHDRAWALS FROM YOUR POLICY
You may make a partial withdrawal of your net cash surrender value (defined
below) at any time after the first year of your policy and before the policy
anniversary nearest to the insured's attained age 100, provided the paid up
death benefit guarantee is not in effect, the policy is not on loan extension
and you are not receiving monthly benefit payments under the Long Term Care
Services/SM/ Rider. The request must be for at least $500, however, and we have
discretion to decline any request. If you do not tell us from which investment
options you wish us to take the withdrawal, we will use the same allocation
that then applies for the monthly deductions we make for charges; and, if that
is not possible, we will take the withdrawal from all of your investment
options in proportion to your value in each. If you elected the Long Term Care
Services/SM/ Rider, a partial withdrawal will reduce the current long-term care
specified amount by the amount of the withdrawal, but not to less than the
policy account value minus the withdrawal amount. We will not deduct a charge
for making a partial withdrawal.
YOU CAN WITHDRAW ALL OR PART OF YOUR POLICY'S NET CASH SURRENDER VALUE,
ALTHOUGH YOU MAY INCUR TAX CONSEQUENCES BY DOING SO.
EFFECT OF PARTIAL WITHDRAWALS ON INSURANCE COVERAGE. If the Option A death
benefit is in effect, a partial withdrawal results in a dollar-for-dollar
automatic reduction in the policy's face amount (and, hence, an equal reduction
in the Option A death benefit). We will not permit a partial withdrawal that
would reduce the face amount below the minimum stated in your policy, or that
would cause the policy to no longer be treated as life insurance for federal
income tax purposes.
If death benefit Option B is in effect, a partial withdrawal reduces the death
benefit on a dollar for dollar basis, but does not affect the face amount.
The result is different, however, during any time when the alternative death
benefit (discussed later in this prospectus) would be higher than the Option A
or B death benefit you have selected. In that case, a partial withdrawal will
cause the death benefit to decrease by more than the amount of the withdrawal.
A partial withdrawal reduces the amount of your premium payments that counts
toward maintaining the no-lapse guarantee. A partial withdrawal may increase
the chance that your policy could lapse because of insufficient value to pay
policy charges as they fall due or failure to pass the guarantee premium test
for the no-lapse guarantee.
You should refer to "Tax information" below, for information about possible tax
consequences of partial withdrawals and any associated reduction in policy
benefits. Also, partial withdrawals are not permitted while the paid up death
benefit guarantee is in effect. Please see "Paid up death benefit guarantee" in
"More information about policy features and benefits."
SURRENDERING YOUR POLICY FOR ITS NET CASH SURRENDER VALUE
Upon written request satisfactory to us, you can surrender (give us back) your
policy for its "net cash surrender value" at any time. The net cash surrender
value equals your policy account value, minus any outstanding loan and unpaid
loan interest, minus any amount of your policy account value that is
"restricted" as a result of previously distributed terminal illness living
benefits, and further reduced for any monthly benefit payments under the Long
Term Care Services/SM/ Rider, and minus any surrender charge that then remains
applicable. The surrender charge is described in "Charges and expenses you will
pay" earlier in this prospectus.
Please refer to "Tax information" below for the possible tax consequences of
surrendering your policy.
YOUR OPTION TO RECEIVE A TERMINAL ILLNESS LIVING BENEFIT
Subject to our insurance underwriting guidelines and availability in your
state, your policy will automatically include our living benefits rider if you
apply for a face amount of at least $100,000 unless it is issued as a result of
an option to purchase additional insurance election or a conversion from a term
life policy or term rider. This feature enables you to receive a portion
(generally the lesser of 75% or $500,000) of the policy's death benefit
(excluding death benefits pay-
able under certain other policy riders), if the insured person has a terminal
illness (as defined in the rider). The maximum aggregate amount of payments
that will be paid under this Living Benefits Rider for all policies issued by
AXA Equitable or an affiliate company on the life of the same insured person is
$500,000. We make no additional charge for the rider, but we will deduct a
one-time administrative charge of up to $250 from any living benefit we pay.
If you tell us that you do not wish to have the living benefits rider added at
issue, but you later ask to add it, there will be a $100 administrative charge.
Also, we will need to evaluate the insurance risk at that time, and we may
decline to issue the rider.
If you receive a living benefit on account of terminal illness, the Long Term
Care Services/SM/ Rider for chronic illness benefits, if elected, will
terminate and no further benefits will be payable under the Long Term Care
Services/SM/ Rider. Long Term Care Services/SM/ Rider charges will also stop.
In addition, once you receive a living benefit, you cannot elect the paid up
death benefit guarantee and your policy cannot be placed on loan extension. We
will deduct the amount of any living benefit we have paid, plus interest (as
specified in the rider), from the death benefit proceeds that become payable
under the policy if and when the insured person dies. (In your policy we refer
to this as a "lien" we establish against your policy.)
When we pay a living benefit, we automatically transfer a pro rata portion of
your policy's net cash surrender value to the policy's guaranteed interest
option. This amount, together with the interest we charge thereon, will be
"restricted"-- that is, it will not be available for any loans, transfers or
partial withdrawals that you may wish to make. In addition, it may not be used
to satisfy the charges we deduct from your policy's value. We also will deduct
these restricted amounts from any subsequent surrender proceeds that we pay.
The receipt of a living benefits payment may qualify for exclusion from income
tax. See "Tax information" below. Receipt of a living benefits payment may
affect your eligibility for certain government benefits or entitlements.
YOU CAN ARRANGE TO RECEIVE A "LIVING BENEFIT" IF THE INSURED PERSON BECOMES
TERMINALLY ILL.
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ACCESSING YOUR MONEY
8. Tax information
This discussion is based on current federal income tax law and interpretations.
It assumes that the policy owner is a natural person who is a U.S. citizen and
resident and has an insurable interest in the insured. The tax effects on
corporate taxpayers, non-U.S. residents or non-U.S. citizens may be different.
This discussion is general in nature, and should not be considered tax advice,
for which you should consult a qualified tax advisor.
BASIC INCOME TAX TREATMENT FOR YOU AND YOUR BENEFICIARY
An Incentive Life Optimizer(R) policy will be treated as "life insurance" for
federal income tax purposes (a) if it meets the definition of life insurance
under Section 7702 of the Internal Revenue Code (the "Code") and (b) as long as
the investments made by the underlying Portfolios satisfy certain investment
diversification requirements under Section 817(h) of the Code. The following
discussion assumes that the policies meet these requirements and, therefore,
that generally:
. the death benefit received by the beneficiary under your policy will not be
subject to federal income tax; and
. increases in your policy account value as a result of interest or
investment experience will not be subject to federal income tax, unless and
until there is a distribution from your policy, such as a surrender, a
partial withdrawal, loan or a payment to you.
The IRS, however, could disagree with our position such that certain tax
consequences could be other than as described. If it is subsequently determined
that a policy does not satisfy the applicable requirements, we may take
appropriate steps to bring the policy into compliance with such requirements
and we reserve the right to restrict policy transactions in order to do so.
There may also be different tax consequences if you assign your policy,
transfer an interest therein or designate a new owner. See "Assigning your
policy" later in this prospectus. See also special rules below for "Business
and employer owned policies," and for the discussion of insurable interest
under "Other information."
TAX TREATMENT OF DISTRIBUTIONS TO YOU (LOANS, PARTIAL WITHDRAWALS, AND FULL
SURRENDER)
The federal income tax consequences of a distribution from your policy depend
on whether your policy is a "modified endowment contract" (sometimes also
referred to as a "MEC"). In all cases, however, the character of any income
described below as being taxable to the recipient will be ordinary income (as
opposed to capital gain).
TESTING FOR MODIFIED ENDOWMENT CONTRACT STATUS. Your policy will be a "modified
endowment contract" if, at any time during the first seven years of your
policy, you have paid a cumulative amount of premiums that exceeds the
cumulative seven-pay limit. The cumulative seven-pay limit is the amount of
premiums that you would have paid by that time under a similar fixed-benefit
insurance policy that was designed (based on certain assumptions mandated under
the Code) to provide for paid up future benefits after the payment of seven
equal annual premiums. ("Paid up" means that no future premiums would be
required.) This is called the "seven-pay" test.
Whenever there is a "material change" under a policy, the policy will generally
be (a) treated as a new contract for purposes of determining whether the policy
is a modified endowment contract and (b) subjected to a new seven-pay period
and a new seven-pay limit. The new seven-pay limit would be determined taking
into account, under a prescribed formula, the policy account value at the time
of such change. A materially changed policy would be considered a modified
endowment contract if it failed to satisfy the new seven-pay limit at any time
during the new seven-pay period. A "material change" for these purposes could
occur as a result of a change in death benefit option, a requested increase in
the policy's face amount or certain other changes.
If your policy's benefits are reduced during its first seven years (or within
seven years after a material change), the seven-pay limit will be redetermined
based on the reduced level of benefits and applied retroactively for purposes
of the seven-pay test. (Such a reduction in benefits could include, for
example, a requested decrease in face amount, the termination of additional
benefits under a rider or, in some cases, a partial withdrawal or a change in
death benefit option.) If the premiums previously paid during its first seven
years (or within seven years after a material change) are greater than the
recalculated (lower) seven-pay limit, the policy will become a modified
endowment contract.
A life insurance policy that you receive in exchange for a modified endowment
contract will also be considered a modified endowment contract.
In addition to the above premium limits for testing for modified endowment
status, federal income tax rules must be complied with in order for it to
qualify as life insurance. Changes made to your policy, for example, a decrease
in face amount (including any decrease that may occur as a result of a partial
withdrawal), a change in death benefit option, or other decrease in benefits
may impact the maximum amount of premiums that can be paid, as well as the
maximum amount of policy account value that may be maintained under the policy.
We may also be required to provide a higher death benefit notwithstanding the
decrease in face amount in order to assure that your policy continues to
qualify as life insurance. Under either test, in some cases, this may cause us
to take current or future action in order to assure that your policy continues
to qualify as life insurance, including distribution of amounts to you that may
be includible as income. See "Changes we can make" later in this prospectus.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT
CONTRACT. As long as your policy remains in force as a non-modified endowment
contract, policy loans will generally be treated as indebtedness, and no part
of the loan proceeds will be subject to current federal income tax. Interest on
the loan will generally not be tax deductible, although interest credited on
loan collateral may become taxable under the rules below if distributed.
However, there is some uncertainty as to the federal tax treatment of policy
loans with a small or no spread between the interest rate charged and the
interest rate credited on the amount loaned. You should consult a qualified tax
adviser as to the federal tax treatment of such loans. Also, see below for
taxation of loans upon surrender or termination of your policy.
If you make a partial withdrawal after the first 15 years of your policy, the
proceeds will not be subject to federal income tax except to the
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TAX INFORMATION
extent such proceeds exceed your "basis" in your policy. (Your basis generally
will equal the premiums you have paid, less the amount of any previous
distributions from your policy that were not taxable.) During the first 15
years, however, the proceeds from a partial withdrawal could be subject to
federal income tax, under a complex formula, to the extent that your policy
account value exceeds your basis.
Upon full surrender, any amount by which the proceeds we pay (including amounts
we use to discharge any policy loan and unpaid loan interest) exceed your basis
in the policy will be subject to federal income tax. IN ADDITION, IF A POLICY
TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN-OUTSTANDING
POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A DISTRIBUTION AND
COULD BE SUBJECT TO TAX UNDER THE FOREGOING RULES. Finally, if you make an
assignment of rights or benefits under your policy, you may be deemed to have
received a distribution from your policy, all or part of which may be taxable.
POLICY LOANS. Policy loans can cause taxable income upon the termination of a
policy with no cash payout. In the case of a surrender, the loan amount is
taken into account in determining any taxable amount and such income can also
exceed the payment received. These events can occur from potential situations
which include: (1) amount of outstanding policy debt (loans taken plus unpaid
interest amounts added to the outstanding loan) at or near the maximum loan
value; (2) unfavorable investment results affecting your policy account value;
(3) increasing monthly policy charges due to increasing attained ages of the
insured; (4) high or increasing amount of insurance risk, depending on death
benefit option and changing account value; and (5) increasing policy loan rates
if an adjustable policy loan rate is in effect.
Ideally a policy loan will be paid from income tax free death benefit proceeds
if your policy is kept in force until the death of the insured. To avoid policy
terminations that may give rise to significant income tax liability, you may
need to make substantial premium payments or loan repayments to keep your
policy in force.
You can reduce the likelihood that these situations will occur by considering
these risks before taking a policy loan. If you take a policy loan, you should
monitor the status of your policy with your financial representative and your
tax advisor at least annually, and take appropriate preventative action. As
indicated above, in the case of a policy that is a modified endowment contract
("MEC"), any loan will be treated as a distribution when made, and thus may be
taxable at such time.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS A MODIFIED ENDOWMENT
CONTRACT. Any distribution from your policy will be taxed on an "income-first"
basis if your policy is a modified endowment contract. Distributions for this
purpose include a loan (including any increase in the loan amount to pay
interest on an existing loan or an assignment or a pledge to secure a loan) or
withdrawal. Any such distributions will be considered taxable income to you to
the extent your policy account value exceeds your basis in the policy. (For
modified endowment contracts, your basis is similar to the basis described
above for other policies, except that it also would be increased by the amount
of any prior loan under your policy that was considered taxable income to you.)
For purposes of determining the taxable portion of any distribution, all
modified endowment contracts issued by AXA Equitable (or its affiliates) to the
same owner (excluding certain qualified plans) during any calendar year are
treated as if they were a single contract.
A 10% penalty tax also will apply to the taxable portion of most distributions
from a policy that is a modified endowment contract. The penalty tax will not,
however, apply to (i) taxpayers whose actual age is at least 59 1/2,
(ii) distributions in the case of a disability (as defined in the Code) or
(iii) distributions received as part of a series of substantially equal
periodic annuity payments for the life (or life expectancy) of the taxpayer or
the joint lives (or joint life expectancies) of the taxpayer and his or her
beneficiary. The exceptions generally do not apply to life insurance policies
owned by corporations or other entities.
IF YOUR POLICY TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN
OUTSTANDING POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A
DISTRIBUTION (to the extent the loan was not previously treated as such) and
could be subject to tax, including the 10% penalty tax, as described above. In
addition, upon a full surrender, any excess of the proceeds we pay (including
any amounts we use to discharge any loan) over your basis in the policy, will
be subject to federal income tax and, unless an exception applies, the 10%
penalty tax.
Distributions that occur during a year of your policy in which it becomes a
modified endowment contract, and during any subsequent years, will be taxed as
described in the four preceding paragraphs. In addition, distributions from a
policy within two years before it becomes a modified endowment contract also
will be subject to tax in this manner. This means that a distribution made from
a policy that is not a modified endowment contract could later become taxable
as a distribution from a modified endowment contract. So, for example, if a
policy has been collaterally assigned as security for a loan and the policy
subsequently becomes a MEC there could be a taxable deemed distribution even
though the policy owner has not received any payment from us.
POLICY CHANGES. Changes made to a life insurance policy, for example, a
decrease in benefits, a death benefit option change, or the termination or
restoration of a terminated policy, may have other effects on your policy,
including impacting the maximum amount of premiums that can be paid under the
policy. In some cases, this may cause us to take action in order to assure your
policy continues to qualify as life insurance, including distribution of
amounts that may be includable as income. This action may be required under the
tax law even though the policy may not be sufficiently funded to keep it in
force for a desired duration. In some cases, premium payments for a policy year
could be limited to the amount needed to keep the policy in force until the end
of the policy year. You should carefully go over the implications of any policy
changes with your advisor before making a change.
RESTORATION OF A TERMINATED POLICY. For tax purposes, some restorations of a
policy that terminated after a grace period may be treated as the purchase of a
new policy. Since tax laws and regulations and their application may have
changed by such time, there can be no assurance that we can reinstate the
policy to qualify as life insurance under future tax rules.
TAX TREATMENT OF LIVING BENEFITS RIDER OR LONG TERM CARE SERVICES/SM/ RIDER
UNDER A POLICY WITH THE APPLICABLE RIDER
LIVING BENEFITS RIDER. Amounts received under an insurance policy on the life
of an individual who is terminally ill, as defined by the tax law, are
generally excludable from gross income as an accelerated death benefit. We
believe that the benefits provided under our living benefits rider meet the tax
law's definition of terminally ill and can qualify for this income tax
exclusion.
LONG TERM CARE SERVICES/SM/ RIDER. Benefits received under the Long Term Care
Services/SM/ Rider are intended to be treated, for Federal income tax purposes,
as accelerated death benefits under section 101(g) of the Code on the life of a
chronically ill insured person receiving qualified
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TAX INFORMATION
long-term care services within the meaning of section 7702B of the Code. The
benefits are intended to qualify for exclusion from income subject to the
limitations of the Code with respect to a particular insured person. However,
receipt of these benefits may be taxable in part. Generally income exclusion
for all payments from all sources with respect to an insured person will be
limited to the higher of the Health Insurance Portability and Accountability
Act ("HIPAA") per day limit or actual costs incurred by the taxpayer on behalf
of the insured person. Charges for the Long Term Care Services/SM/ Rider may be
considered distributions for income tax purposes, and may be taxable to the
owner to the extent not considered a nontaxable return of premiums paid for the
life insurance policy. See above for tax treatment of distributions to you.
Charges for the Long Term Care Services/SM/ Rider are generally not considered
deductible for income tax purposes. The Long Term Care Services/SM/ Rider is
not intended to be a qualified long-term care insurance contract under section
7702B(b) of the Code.
Any adjustments made to your policy death benefit, face amount and other values
as a result of Long Term Care Services/SM/ Rider benefits paid will also
generally cause us to make adjustments with respect to your policy under
federal income tax rules for testing premiums paid, your tax basis in your
policy, your overall premium limits and the seven-pay period and seven-pay
limit for testing modified endowment contract status.
UNDER EITHER RIDER, if the owner and the insured person are not the same, the
exclusion for accelerated death benefits for terminal illness or a chronic
illness does not apply if the owner (taxpayer) has an insurable interest with
respect to the life of the insured person by reason of the insured person being
an officer, employee or director of the taxpayer or by reason of the insured
person being financially interested in any trade or business carried on by the
taxpayer. Also, if the owner and insured person are not the same, other tax
considerations may also arise in connection with a transfer of benefits
received to the insured person, for example, gift taxes in personal settings,
compensation income in the employment context and inclusion of life insurance
policy proceeds for estate tax purposes in certain trust owned situations.
Under certain conditions, a gift tax exclusion may be available for certain
amounts paid on behalf of a donee to the provider of medical care.
BUSINESS AND EMPLOYER OWNED POLICIES
Any employer owned life insurance arrangement on an employee or director as
well as any corporate, trade, or business use of a policy should be carefully
reviewed by your tax advisor with attention to the rules discussed below. Also,
careful consideration should be given to any other rules that may apply,
including other possible pending or recently enacted legislative proposals.
REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS. Federal tax law imposes
additional requirements for employer owned life insurance policies. The
provisions can have broad application for contract owners engaged in a trade or
business or certain related persons. These requirements include detailed notice
and consent rules, annual tax reporting and recordkeeping requirements on the
employer and limitations on those employees (including directors) who can be
insured under the life insurance policy. Failure to satisfy applicable
requirements will result in death benefits in excess of premiums paid by the
owner being includible in the owner's income upon the death of the insured
employee. Notice and consent requirements must be satisfied before the issuance
of the life insurance policy or a material change to an existing life insurance
policy, otherwise benefits may lose their tax favored treatment.
The rules generally apply to life insurance policies issued after August 17,
2006. Note, however, that material increases in the death benefit or other
material changes will generally cause an existing policy to be treated as a new
policy and thus subject to the new requirements. The term "material" has not
yet been fully defined but is expected to not include automatic increases in
death benefits in order to maintain compliance with the life insurance policy
tax qualification rules under the Code. An exception for certain tax-free
exchanges of life insurance policies pursuant to Section 1035 of the Code may
be available but is not clearly defined.
LIMITATIONS ON INTEREST DEDUCTIBILITY FOR BUSINESS OWNED LIFE
INSURANCE. Ownership of a policy by a trade or business can limit the amount of
any interest on business borrowings that the entity otherwise could deduct for
federal income tax purposes, even though such business borrowings may be
unrelated to the policy. To avoid the limit, the insured person must be an
officer, director, employee or 20% owner of the trade or business entity when
coverage on that person commences.
The limit does not generally apply for policies owned by natural persons (even
if those persons are conducting a trade or business as sole proprietorships),
unless a trade or business entity that is not a sole proprietorship is a direct
or indirect beneficiary under the policy. Entities commonly have such a
beneficial interest, for example, in so-called "split-dollar" arrangements. If
the trade or business entity has such an interest in a policy, it will be
treated the same as if it owned the policy for purposes of the limit on
deducting interest on unrelated business income.
The limit generally applies only to policies issued after June 8, 1997 in
taxable years ending after such date. However, for this purpose, any material
change in a policy will be treated as the issuance of a new policy.
In cases where the above-discussed limit on deductibility applies, the
non-deductible portion of unrelated interest on business loans is determined by
multiplying the total amount of such interest by a fraction. The numerator of
the fraction is the policy's average account value (excluding amounts we are
holding to secure any policy loans) for the year in question, and the
denominator is the average for the year of the aggregate tax bases of all the
entity's other assets. The above limitation is in addition to rules limiting
interest deductions on policy loans against business-owned life insurance.
Special rules apply to insurance company owners of policies which may be more
restrictive.
USES OF POLICY WHICH MAY BE SCRUTINIZED. The IRS may view certain uses of life
insurance policies as a tax shelter or as an abusive transaction. Please
consult your tax advisor for the most up-to-date information as to IRS
"Recognized Abusive and Listed Transactions" and how they may affect your
policy.
REQUIREMENT THAT WE DIVERSIFY INVESTMENTS
Under Section 817(h) of the Code, the Treasury Department has issued
regulations that implement investment diversification requirements. Failure to
comply with these regulations would disqualify your policy as a life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to federal income tax on any income and gains under the policy and the
death benefit proceeds would lose their income tax-free status. These
consequences would continue for the period of the disqualification and for
subsequent periods. Through the Portfolios, we intend to comply with the
applicable diversification requirements, though no assurances can be given in
this regard.
ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
If the policy's owner is the insured person, the death benefit will generally
be includable in the owner's estate for purposes of federal estate tax. If the
owner is not the insured person, and the owner dies before the insured person,
the value of the policy would be includable in the owner's estate. If the owner
is neither the insured person nor the beneficiary, the owner will be considered
to have made a gift to the beneficiary of the death benefit proceeds when they
become payable.
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TAX INFORMATION
In general, a person will not owe estate or gift taxes until gifts made by such
person, plus that person's taxable estate, total at least $10 million (this
statutory amount is to be indexed for inflation after 2010). A portability rule
generally permits a surviving spouse to elect to carry over the unused portion
of the deceased spouse's exclusion amount.
Certain amounts may be deductible or excludable, such as gifts and bequests to
a person's spouse or charitable institutions, as well as for certain gifts per
recipient per year ($15,000 for 2019, indexed for inflation).
As a general rule, if you make a "transfer" to a person two or more generations
younger than you, a generation-skipping tax may be payable. Generation-skipping
transactions would include, for example, a case where a grandparent "skips" his
or her children and names his or her grandchildren as a policy's beneficiaries.
In that case, the generation-skipping "transfer" would be deemed to occur when
the insurance proceeds are paid. The generation-skipping tax rates are similar
to the maximum estate tax rates in effect at the time. Individuals are
generally allowed an aggregate generation-skipping tax exemption of the same
amount discussed above for estate and gift taxes, but without portability.
The particular situation of each policy owner, insured person or beneficiary
will determine how ownership or receipt of policy proceeds will be treated for
purposes of federal estate, gift and generation-skipping taxes, as well as
state and local estate, inheritance and other taxes. Because these rules are
complex, you should consult with a qualified tax adviser for specific
information, especially where benefits are passing to younger generations.
If this policy is used with estate and gift tax planning in mind, you should
consult with your tax advisor as to the most up-to-date information as to
federal estate, gift and generation skipping tax rules.
PENSION AND PROFIT-SHARING PLANS
There are special limits on the amount of insurance that may be purchased by a
trust or other entity that forms part of a pension or profit-sharing plan
qualified under Section 401(a) or 403 of the Code. In addition, the federal
income tax consequences will be different from those described in this
prospectus. These rules are complex, and you should consult a qualified tax
advisor.
SPLIT-DOLLAR AND OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may also apply when a policy is held by an employer or a trust,
or acquired by an employee, in connection with the provision of other employee
benefits. Employees may have imputed income for the value of any economic
benefit provided by the employer. There may be other tax implications, as well.
It is possible that certain split-dollar arrangements may be considered to be a
form of deferred compensation under Section 409A of the Code, which broadens
the definition of deferred compensation plans, and subjects such plans to new
requirements. Further, certain split-dollar arrangements may come within the
rules for business- and employer-owned policies. Among other issues, policy
owners must consider whether the policy was applied for by or issued to a
person having an insurable interest under applicable state law and with the
insured person's consent. The lack of an insurable interest or consent may,
among other things, affect the qualification of the policy as life insurance
for federal income tax purposes and the right of the beneficiary to receive a
death benefit.
If this policy is being or was purchased pursuant to a split-dollar
arrangement, you should also consult your tax advisor for advice concerning the
effect of the following guidance. In 2002 the IRS issued Notice 2002-8
concerning the taxation of split-dollar life insurance arrangements as well as
regulations in both 2002 and 2003. They provide for taxation under one of two
mutually exclusive regimes depending upon the structure of the arrangement.
These are a loan regime and an economic benefit regime. Transition and
grandfathering rules, among other items, should be carefully reviewed when
considering such arrangements. A material modification to an existing
arrangement may result in a change in tax treatment. In addition, public
corporations (generally publicly-traded or publicly-reporting companies) and
their subsidiaries should consider the possible implications on split-dollar
arrangements of the Securities Exchange Act of 1934 which generally prohibit
certain direct or indirect loans to executive officers or directors. At least
some split-dollar arrangements could be deemed to involve loans within the
purview of that section.
ERISA
Employers and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement Income Security Act of
1974. There may also be other implications. You should consult a qualified
legal advisor.
3.8% TAX ON NET INVESTMENT INCOME OR "NII"
The 3.8% Medicare tax on certain unearned income of taxpayers whose adjusted
incomes exceed certain thresholds applies to all or part of a taxpayer's NII.
As currently interpreted under IRS guidelines, NII includes the taxable portion
of an annuitized payment from a life insurance contract. It has not been
defined to include taxable amounts from partial withdrawals, surrenders or
lapses of life insurance policies subject to loans. You should consult your tax
advisor as to the applicability of this tax to you.
OUR TAXES
The operations of our separate accounts are reported in our federal income tax
return. Separate account investment income and capital gains, however, are, for
tax purposes, reflected in our variable life insurance policy reserves.
Currently we pay no taxes on such income and gains and impose no charge for
such taxes. We reserve the right to impose a charge in the future for taxes
incurred by us that are allocable to the policies.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate accounts. These tax benefits, which
may include the foreign tax credit and the corporate dividends received
deduction, are not passed back to you, since we are the owner of the assets
from which tax benefits may be derived.
TAX WITHHOLDING AND INFORMATION REPORTING
STATUS FOR INCOME TAX PURPOSES; FATCA. In order for us to comply with income
tax withholding and information reporting rules which may apply to life
insurance policies, we request documentation of "status" for tax purposes.
"Status" for tax purposes generally means whether a person is a "U S. person"
or a foreign person with respect to the United States; whether a person is an
individual or an entity, and if an entity, the type of entity. Status for tax
purposes is best documented on the appropriate IRS Form or substitute
certification form (IRS Form W-9 for a U.S. person or the appropriate type of
IRS Form W-8 for a foreign person). If we do not have appropriate certification
or documentation of a person's status for tax purposes on file, it could affect
the rate at which we are required to withhold income tax, and penalties could
apply. Information reporting rules could apply not only to specified
transactions, but also to life insurance policy ownership. For example, under
the Foreign Account Tax Compliance Act ("FATCA"), which applies to certain
U.S.-source payments, and similar or related withholding and information
reporting
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TAX INFORMATION
rules, we may be required to report policy values and other information for
certain policyholders. For this reason, we and our affiliates intend to require
appropriate status documentation at purchase, change of ownership, and affected
payment transactions, including death benefit payments. FATCA and its related
guidance is extraordinarily complex and its effect varies considerably by type
of payor, type of payee and type of recipient.
TAX WITHHOLDING. Generally, unless you provide us with a satisfactory written
election to the contrary prior to the distribution, we are required to withhold
income tax from any proceeds we distribute as part of a taxable transaction
under your policy. If you do not wish us to withhold tax from the payment, or
if we do not withhold enough, you may have to pay later, and you may incur
penalties under the estimated income tax rules. In some cases, where generation
skipping taxes may apply, we may also be required to withhold for such taxes
unless we are provided satisfactory notification that no such taxes are due.
States may also require us to withhold tax on distributions to you and may not
always follow federal rules.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U.S. entity recipients which
are treated as foreign because they fail to document their U.S. status before
payment is made. We do not discuss these rules here in detail. However, we may
require additional documentation in the case of payments made to United States
persons living abroad and non-United States persons (including U.S. entities
treated as foreign) prior to processing any requested transaction. For Puerto
Rico and other jurisdictions, income is considered U.S.-source income. We
anticipate requiring owners or beneficiaries in Puerto Rico which are not
individuals to document their status to avoid 30% FATCA withholding from
U.S.-source income.
POSSIBILITY OF FUTURE TAX CHANGES AND OTHER TAX INFORMATION
The U.S. Congress frequently considers legislation that, if enacted, could
change the tax treatment of life insurance policies or increase the taxes we
pay in connection with such policies. This could include special rules for
tax-exempt entities as well as for corporate or business use of policies. In
addition to legislation enacted in December 2017, Congress may also consider
further proposals to comprehensively reform or overhaul the United States tax
and retirement systems, which if enacted, could affect the tax benefits of a
life insurance policy. Legislative proposals could make sweeping changes to
many longstanding tax rules including certain tax benefits currently available
to newly purchased cash value life insurance policies. Proposals have been
considered to eliminate some or all taxable expenditures or tax preferences
together with some lowering of tax rates. We cannot predict what if any,
legislation will actually be proposed or enacted or what type of grandfathering
will be allowed for existing life insurance policies. In addition, the Treasury
Department may amend existing regulations, issue regulations on the
qualification of life insurance and modified endowment contracts, or adopt new
or clarifying interpretations of existing law. Some areas of possible future
guidance include new rules for testing for policies issued on a special risk
class basis. As a result, there are areas of some uncertainty even under
current laws, such that future tax consequences of a policy could be other than
as described herein.
State and local tax law or, if you are not a U.S. citizen and resident, foreign
tax law, may also affect the tax consequences to you, the insured person or
your beneficiary, and are subject to change or change in interpretation. Any
changes in federal, state, local or foreign tax law or interpretations could
have a retroactive effect both on our taxes and on the way your policy is taxed
or the tax benefit of life insurance policies.
The policies described in this Prospectus are tested for qualification as life
insurance using the 2001 Commissioners Standard Ordinary ("2001 CSO") mortality
tables. See "Cost of insurance charge" later in this Prospectus. Due to updated
State insurance laws and Federal income tax rules new life insurance policies
using any mortality tables other than the 2017 Commissioners Standard Ordinary
("2017 CSO") mortality tables cannot be sold after December 31, 2019.
This change in prevailing mortality tables does not affect existing policies
described in this Prospectus, as they were all purchased before January 1,
2020. The policies will continue to be tested for tax purposes using the 2001
CSO mortality tables. The IRS has issued guidance on changes made after
December 31, 2019 to policies issued before 2020 which are tested using the
2001 CSO mortality tables. This IRS "safe harbor" guidance permits certain
policy changes without losing the ability to use the 2001 CSO mortality tables
for testing. If we determine that certain future changes to your policy would
cause it to lose its ability to be tax tested under the 2001 CSO mortality
tables, we intend to refuse such transactions which might have otherwise been
available under your policy, subject to our rules then in effect. We would take
such action to help assure that your policy can continue to qualify as life
insurance for federal tax testing under the 2001 CSO mortality tables.
OTHER INFORMATION
There are a number of tax benefits associated with variable life insurance
policies. For tax benefits to be available, the policy owner must have an
insurable interest in the life of the insured under applicable state laws.
Requirements may vary by state. A failure can, among other consequences, cause
the policy owner to lose anticipated favorable federal tax treatment generally
afforded life insurance.
For tax benefits to continue, the policy must continue to qualify as life
insurance. We reserve the right to restrict transactions that we determine
would cause your policy to fail to qualify as life insurance under federal tax
law. We also reserve the right to decline to make any change that may cause
your policy to lose its ability to be tested for federal income tax purposes
under the 2001 Commissioners Standard Ordinary Mortality Tables.
In addition to other requirements, federal tax law requires that the insurer,
and not the policy owner, have control of the underlying investment assets for
the policy to qualify as life insurance.
You may make transfers among Portfolios of the Separate Account, but you may
not direct the investments each Portfolio makes. If the IRS were to conclude
that you, as the investor, have control over these investments, then the policy
would no longer qualify as life insurance. You would be treated as the owner of
separate account assets and be currently taxed on any income or gain the assets
generate.
The IRS has provided some guidance on investor control, but many issues remain
unclear. One such issue is whether a policy owner can have too much investor
control if the variable life policy offers a large number of investment options
in which to invest policy account values and/or the ability to make frequent
transfers available under the policy. We do not know if the IRS will provide
any further guidance on the issue. If guidance is provided, we do not know if
it would apply retroactively to policies already in force.
We believe that our variable life policies do not give policy owners investment
control over the investments underlying the various investment options;
however, the IRS could disagree with our position. The IRS could seek to treat
policy owners with a large number of investment options and/or the ability to
freely transfer among investment options as the owners of the underlying
Portfolio's shares. Accordingly, we reserve the right to modify your policy as
necessary to attempt to prevent you from being considered the owner of your
policy's proportionate share of the assets of the Separate Account.
39
TAX INFORMATION
9. More information about policy features and benefits
GUARANTEE PREMIUM TEST FOR THE NO-LAPSE GUARANTEE
We offer a guarantee against policy lapse that depends on your having paid
specified amounts of premiums. We refer to this guarantee as our "no-lapse
guarantee" and you can read more about it in "You can guarantee that your
policy will not terminate before a certain date" in "Risk/benefit summary:
Policy features, benefits and risks," earlier in this Prospectus.
GUARANTEE PREMIUM TEST. If your net policy account value is not sufficient to
pay a monthly deduction that has become due, we check to see if the cumulative
amount of premiums that you have paid to date (less any partial withdrawals) at
least equals the cumulative guarantee premiums due to date for the no-lapse
guarantee and guarantee premiums for any optional riders that are then
available under your policy. If it does, your policy will not lapse, provided
that any policy loan and accrued loan interest does not exceed the policy
account value, and provided that the guarantee is still in effect.
GUARANTEE PREMIUMS. The amount of the guarantee premiums for the no-lapse
guarantee is set forth in your policy on a monthly basis. The guarantee
premiums are actuarially determined at policy issuance and depend on the age
and other insurance risk characteristics of the insured person, as well as the
amount of the coverage and additional features you select. The guarantee
premiums may change if, for example, the face amount of the policy or the
long-term care specified amount changes, or a rider is eliminated, or if there
is a change in the insured person's risk characteristics. We will send you a
new policy page showing any change in your guarantee premiums. Any change will
be prospective only, and no change will extend the no-lapse guarantee period
beyond its original number of years.
PAID UP DEATH BENEFIT GUARANTEE
Subject to our approval, you may elect the "paid up" death benefit guarantee at
any time after the fourth year. This benefit provides an opportunity to lock in
all or a portion of your policy's death benefit without making additional
premium payments. Also, this benefit may be attractive to you if you are
concerned about the impact of poor future investment performance or increases
in policy charges on your policy's death benefit and potential policy lapse.
You may elect this benefit provided:
. the insured's attained age is not more than 99;
. you have death benefit "Option A" in effect (see "About your life insurance
benefit" in "Risk/benefit summary: Policy features, benefits and risks,"
earlier in this prospectus);
. we are not paying policy premiums or waiving monthly charges under the
terms of a disability waiver rider and you have not received any payment
under a living benefits rider or the Long Term Care Services/SM/ Rider;
. the policy is not in default or in a grace period as of the effective date
of the paid up death benefit guarantee;
. the policy account value after the deduction of any proportionate surrender
charge would not be less than any outstanding policy loan and accrued loan
interest;
. the policy is not on loan extension. (For more information about loan
extension, see "Accessing your money" earlier in this prospectus;
. the election would not reduce the face amount (see below) below the minimum
stated in your policy;
. no current or future distribution from the policy will be required to
maintain its qualification as life insurance under the Internal Revenue
Code; and
. You agree to re-allocate your fund values to the guaranteed interest option
and the EQ Allocation investment options. We reserve the right to change
the investment options available to you under the paid up death benefit
guarantee. (See "Restrictions on allocations and transfers," below).
The effective date of the paid up death benefit guarantee will be the beginning
of the policy month that next follows the date we approve your request. On the
effective date of this guarantee, all additional benefit riders and
endorsements will automatically terminate including the Long Term Care
Services/SM/ Rider. The policy's net cash surrender value after the paid up
death benefit guarantee is in effect will equal the policy account value, less
any applicable surrender charges and any outstanding policy loan and accrued
loan interest. The policy death benefit will be Option A. We will continue to
deduct policy charges from your policy account value. As explained below,
electing the paid up death benefit guarantee may reduce your policy's face
amount, which in turn may result in the deduction of a surrender charge. You
can request a personalized illustration that will show you how your policy face
amount could be reduced and values could be affected by electing the paid up
death benefit guarantee.
POSSIBLE REDUCTION OF FACE AMOUNT. The face amount of your policy after this
guarantee is elected is the lesser of (a) the face amount immediately before
the election or (b) the policy account value on the effective date of the
election divided by a factor based on the then age of the insured person. The
factors are set forth in your policy. As a general matter, the factors change
as the insured person ages so that, if your policy account value stayed the
same, the result of the calculation under clause (b) above would be lower the
longer your policy is in force. We will decline your election if the new face
amount would be less than the minimum stated in your policy.
If electing the paid up death benefit guarantee causes a reduction in face
amount, we will deduct the same portion of any remaining surrender charge as we
would have deducted if you had requested that decrease directly (rather than
electing the paid up death benefit guarantee). (See "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus.) In certain
cases, a reduction in face amount may cause a policy to become a modified
endowment contract. See "Tax treatment of distributions to you (loans, partial
withdrawals and full surrender)" under "Tax Information."
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
RESTRICTIONS ON ALLOCATIONS AND TRANSFERS. While the paid up death benefit
guarantee is in effect, you will be restricted as to the investment options
available to you under the policy and the amounts that can be allocated to the
guaranteed interest option. You will be able to allocate up to 25% of your
unloaned policy account value to the guaranteed interest option. Currently, the
remainder of your unloaned policy account value must be allocated among the EQ
Allocation investment options. (See "About the Portfolios of the Trusts" for
the listing of EQ Allocation investment options.) When you elect the paid up
death benefit guarantee, we require that you provide us with new allocation
instructions. In the absence of these instructions, we will be unable to
process your request.
Also, transfers from one or more of our EQ Allocation investment options into
the guaranteed interest option will not be permitted if such transfer would
cause the value of your guaranteed interest option to exceed 25% of your total
unloaned policy account value. Loan repayments allocated to your guaranteed
interest option will be limited to an amount that would not cause the value in
your guaranteed interest option to exceed 25% of your total unloaned policy
account value. If the value in your guaranteed interest option already exceeds
25% of your total unloaned policy account value (including the repayment), no
portion of the repayment will be allocated to the guaranteed interest option.
Any portion of the loan repayment that is not allocated to the guaranteed
interest option will be allocated in proportion to the loan repayment amounts
for the variable investment options you have specified. If we do not have
instructions, we will use the allocation percentages for the variable
investment options you specified when you elected the paid up death benefit
guarantee or the most recent instructions we have on record. These restrictions
would be lifted if the paid up death benefit guarantee is terminated.
OTHER EFFECTS OF THIS GUARANTEE. After you have elected the paid up death
benefit guarantee, you may request a policy loan, make a loan repayment or
transfer policy account value among the guaranteed interest option and variable
investment options, subject to our rules then in effect. The following
transactions, however, are not permitted when this guarantee is in effect:
. premium payments
. partial withdrawals
. changes to the policy's face amount or death benefit option
. any change that would cause the policy to lose its current or future
qualification as life insurance under the Internal Revenue Code or require
a current or future distribution from the policy to avoid such
disqualification. (See "Tax treatment of distributions to you" under "Tax
information" earlier in this prospectus.)
TERMINATION OF THIS GUARANTEE. You may terminate the paid up death benefit
guarantee by written request to our Administrative Office. If terminated, the
policy face amount will not change. However, premiums may be required to keep
the policy from lapsing. If the guarantee terminates due to an outstanding loan
and accrued loan interest exceeding the policy account value, a payment will be
required to keep the policy and the guarantee in force pursuant to the policy's
grace period provision. If the guarantee terminates for any reason, it cannot
be restored at a later date.
OTHER BENEFITS YOU CAN ADD BY RIDER
You may be eligible for the following other optional benefits we currently make
available by rider:
. Long Term Care Services/SM/ Rider -- Described below.
. Cash Value Plus Rider -- Described below.
. disability deduction waiver -- This rider waives the monthly charges from
the policy account value if the insured is totally disabled, as defined in
the rider, for at least six consecutive months and the disability began
prior to the policy anniversary nearest the insured's 60th birthday. If
total disability begins on or after this date, the monthly charges are
waived to the earlier of the policy anniversary nearest the insured's age
65 or termination of disability. Issue ages are 0-59. However, coverage is
not provided until the insured's fifth birthday. The maximum amount of
coverage is $3,000,000 for all AXA Equitable and affiliates' policies
in-force and applied for.
. disability premium waiver -- This rider pays the specified premium or
waives the monthly charges from the policy account value, if that amount is
greater, if the insured is totally disabled, as defined in the rider, for
at least six consecutive months and the disability began prior to the
policy anniversary nearest the insured's 60th birthday. If total disability
begins on or after this date, the specified premium is paid (or the monthly
charges, if greater, are waived) to the earlier of the policy anniversary
nearest the insured's age 65 or termination of disability. Issue ages are
0-59. However, coverage is not provided until the insured's fifth birthday.
The maximum amount of coverage is $3,000,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. children's term insurance -- This rider provides term insurance on the
lives of the insured's children, stepchildren and legally adopted children
who are between the ages of 15 days to 18 years. The insured under the base
policy must be between the ages of 17 and 55. The maximum amount of
coverage is $25,000 for all AXA Equitable and affiliates' policies in-force
and applied for.
. option to purchase additional insurance -- This rider allows you to
purchase a new policy for the amount of the option, on specific dates,
without evidence of insurability. The minimum option amount is $25,000 and
the maximum amount is $100,000. Issue ages are 0-37. The maximum amount of
coverage is $100,000 for all AXA Equitable and affiliates' policies
in-force and applied for.
We add the following benefits automatically at no charge to each eligible
policy:
. substitution of insured person rider (Available for policies with a minimum
face amount of $100,000 unless it is issued as a result of an option to
purchase additional insurance election or a conversion from a term life
policy, see "You can change your policy's insured person" under "More
information about procedures that apply to your policy")
. living benefits rider (See "Your option to receive a terminal illness
living benefit" under "Accessing your money")
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
. paid up death benefit guarantee endorsement (See "Paid up death benefit
guarantee" under "More information about policy features and benefits.")
. loan extension endorsement (See "Loan extension (for guideline premium test
policies only)" under "Accessing your money.")
AXA Equitable or your financial professional can provide you with more
information about these riders. Some of these benefits may be selected only at
the time your policy is issued. Some benefits are not available in combination
with others or may not be available in your state. The riders provide
additional terms, conditions and limitations, and we will furnish samples of
them to you on request. We can add, delete, or modify the riders we are making
available, at any time before they become effective as part of your policy.
See also "Tax information" earlier in this prospectus for certain possible tax
consequences and limitations of deleting riders or changing the death benefits
under a rider.
CASH VALUE PLUS RIDER
In states where approved, an optional rider may be elected at issue that
reduces the surrender charge if the policy is surrendered for its Net Cash
Surrender Value in the first eight policy years. In order to elect the rider,
the policy must have a minimum face amount of $1 million and the initial
annualized planned periodic premium must be at least $50,000. There is a
one-time charge of $250 for the rider and the rider charge will be deducted in
a lump sum from the initial net premium, after deduction of the premium charge.
The rider works by refunding all or a portion of the premium charge and waiving
all or a portion of the surrender charge, if the policy is surrendered in full
in its early years. The percentage of charges refunded or waived under the
rider are as follows:
----------------------------------------------------------------
SURRENDER IN POLICY PERCENT OF PREMIUM PERCENT OF SURRENDER
YEAR CHARGE REFUNDED* CHARGES WAIVED
----------------------------------------------------------------
1 100% 100%
----------------------------------------------------------------
2 80% 100%
----------------------------------------------------------------
3 33% 100%
----------------------------------------------------------------
4 0% 100%
----------------------------------------------------------------
5 0% 80%
----------------------------------------------------------------
6 0% 65%
----------------------------------------------------------------
7 0% 45%
----------------------------------------------------------------
8 0% 25%
----------------------------------------------------------------
9 and later 0% 0%
----------------------------------------------------------------
|
* The mortality and expense risk charge and other monthly charges are not
refunded.
The reduction of the surrender charges does not apply if the policy is being
exchanged or replaced during the first eight policy years with another life
insurance policy or annuity contract on the insured person including (but not
limited to) a 1035 exchange, nor does it apply to a proportionate surrender
charge resulting from a face amount decrease. There is no refund of the premium
charge if during the first three policy years the policy terminates after a
grace period, is being exchanged or replaced with another life insurance policy
or annuity contract on the insured person including (but not limited to) a 1035
exchange, nor does it apply to a face amount decrease.
Amounts available under the policy for loans and partial withdrawals continue
to be calculated as if this rider was not part of the policy.
The premium load refund that would be applicable upon a complete surrender of
the policy may increase the death benefit that is calculated when the claim is
paid in the first 3 policy years in order for the policy to satisfy the
definition of a "life insurance contract" under Section 7702 of the Code.
. RIDER TERMINATION. The rider will terminate on the earliest of the following
dates: 1) The end of the eighth policy year; or 2) The date the policy ends
without value at the end of the Grace Period or otherwise terminates.
LONG TERM CARE SERVICES/SM/ RIDER/(1)/
In states where approved and if you are applying for policy with a face amount
of $100,000 or higher which is not issued as a result of an option to purchase
additional insurance election or a conversion from a term life policy, an
optional rider may be elected at issue that provides for the acceleration of
the policy death benefit as a payment of a portion of the policy's death
benefit each month as a result of the insured person being a chronically ill
individual who is receiving qualified long-term care services./(2)/ Benefits
accelerated under this rider will be treated as a lien against policy values.
While this rider is in force, policy face amount increases and death benefit
option changes are not permitted.
An individual qualifies as "chronically ill" if they have been certified by a
licensed health care practitioner as being unable to perform (without
substantial assistance from another person) at least two activities of daily
living for a period of at least 90 days due to a loss of functional capacity;
or requiring substantial supervision to protect such individual from threats to
health and safety due to cognitive impairment.
Benefits are payable once we receive: 1) a written certification from a U.S.
licensed health care practitioner that the insured person is a chronically ill
individual and is receiving qualified long-term care services pursuant to a
written plan of care; 2) proof that the "elimination period", as discussed
below, has been satisfied; and 3) written notice of claim and proof of loss in
a form satisfactory to us. We require recertification every twelve months from
the date of the initial or subsequent certification to continue monthly benefit
payments, otherwise, benefit payments will terminate at the end of the twelve
month period. This rider may not cover all of the costs associated with
long-term care services during the insured person's period of coverage.
The monthly rate for this rider varies based on the insured person's sex, issue
age, class of risk and tobacco user status, as well as the benefit percentage
selected. See "Risk/benefit summary: Charges and expenses you will pay", for
more information on the charges we deduct for this rider.
If the net policy account value is insufficient to cover the total monthly
deductions for the base policy and any riders while benefits under this rider
are being paid, we will not lapse the policy. When monthly benefits under the
Long Term Care Services/SM/ Rider are being paid, we will waive the monthly
charge for the Long Term Care Services/SM/ Rider.
(1)In the state of Massachusetts, this benefit will be called the Accelerated
Death Benefit for Chronic Illness Rider.
(2)For a more complete description of the terms used in this section and
conditions of this rider, please consult your rider policy form.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
We will pay up to the long-term care specified amount for qualified long-term
care services for the insured person for the duration of a period of coverage.
The initial long-term care specified amount is equal to the face amount of the
base policy at issue. This amount may change due to subsequent policy
transactions and will be reduced at the end of a period of coverage to reflect
benefits paid during that period of coverage. Any request for a decrease in the
policy face amount will reduce the current long-term care specified amount to
an amount equal to the lesser of: (a) the new policy face amount; or (b) the
long-term care specified amount immediately prior to the face amount decrease.
Any partial withdrawal will reduce the current long-term care specified amount
by the amount of the withdrawal, but not to less than the policy account value
minus the withdrawal. The maximum monthly benefit in either case will then be
equal to the new long-term care specified amount multiplied by the benefit
percentage.
The maximum monthly benefit is the maximum amount an affiliated company or we
will pay in a month for qualified long-term care services for the insured
person. The maximum monthly benefit payment amount that you can purchase from
AXA Equitable and its affiliates is limited to $50,000 per month, per insured
person. Affiliates include AXA Equitable Life and Annuity Company, MONY Life
Insurance Company of America and U.S. Financial Life Insurance. The maximum
monthly benefit is equal to the long-term care specified amount multiplied by
the benefit percentage that you have selected. This amount may change due to
subsequent policy transactions. See below for maximum monthly payment
limitations.
Each month, we will pay the monthly benefit payment (a portion of which may be
applied to repay an outstanding policy loan) for qualified long-term care
services for the insured person. The monthly benefit payment is equal to the
lesser of:
1. the maximum monthly benefit (or lesser amount as requested, however, this
may not be less than $500); or
2. the monthly equivalent of 200% (100% in the State of New York) of the per
day limit allowed by the Health Insurance Portability and Accountability
Act. (We reserve the right to increase this percentage.)
When benefits are paid under this rider, we establish an accumulated benefit
lien. This accumulated benefit lien amount will equal the cumulative amount of
rider benefits paid (including any loan repayments) during a period of
coverage, accumulated at 0% interest. We subtract the accumulated benefit lien
amount from the base policy death benefit if the insured person dies before the
end of a period of coverage. For the purposes of determining the cash surrender
value of this policy, the unloaned policy account value, and surrender charge
(if applicable) will be reduced pro rata for the portion of the policy face
amount that we have accelerated to date. However, the unloaned Policy Account
Value will not be reduced by more than the accumulated benefit lien amount.
. ELIMINATION PERIOD. The Long-Term Care Services/SM/ Rider has an elimination
period that is the required period of time while the rider is in force that
must elapse before any benefit is available to the insured person under this
rider. The elimination period is 90 days, beginning on the first day of any
qualified long-term care services that are provided to the insured person.
Except as described below, benefits under this rider will not be paid until the
elimination period is satisfied, and benefits will not be retroactively paid
for the elimination period. The elimination period can be satisfied by any
combination of days of care in a qualified long-term care facility or qualified
days of home health care. The days do not have to be continuous, but the
elimination period must be satisfied within a consecutive period of 24 months
starting with the month in which such services are first provided. If the
elimination period is not satisfied within this time period, you must submit a
new claim for benefits under this rider. This means that a new elimination
period of 90 days must be satisfied within a new 24-month period. The
elimination period must be satisfied only once while this rider is in effect.
Furthermore, and solely at our discretion, we may deem the elimination period
to be satisfied if the insured person provides proof of care from a U.S.
licensed health care provider for at least 60 service days (approximately 5
days a week) within a consecutive period of 90 days starting on the first day
on which such services are first provided.
You can request retroactive payment of benefits for the elimination period if a
U.S. licensed health care practitioner provides written certification that the
insured person is chronically ill and is expected to require qualified
long-term care services for the remainder of the insured person's life, once
the elimination period and all other eligibility requirements have been
satisfied. The amount of any such retroactive payment will be deducted from the
maximum total benefit.
. PERIOD OF COVERAGE. The period of coverage is the period of time during which
the insured person receives services that are covered under the Long Term Care
Services/SM/ Rider and for which benefits are payable. This begins on the first
day of covered services received after the end of the elimination period. A
period of coverage will end on the earliest of the following dates:
1. the date we receive the notice of release which must be sent to us when the
insured person is no longer receiving qualified long-term care services;
2. the date we determine you are no longer eligible to receive benefits in
accordance with the terms of this rider;
3. the date when you request that we terminate benefit payments under this
rider;
4. the date the accumulated benefit lien amount equals the current long-term
care specified amount;
5. the date you surrender the policy;
6. the date we make a payment under the living benefits rider (for terminal
illness); or
7. the date of death of the insured person.
During a period of coverage:
1. Partial withdrawals, face amount decreases and premium payments are not
permitted.
2. Each monthly benefit payment will increase the accumulated benefit lien
amount by the amount of the payment; this amount will be treated as a lien
against your policy values.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
3. If there is an outstanding policy loan at the time we make a benefit
payment, an amount equal to a percentage of the loan and accrued loan
interest will be deducted from the monthly benefit payment and used as a
loan repayment and will reduce the amount otherwise payable to you. This
percentage will equal the monthly benefit payment divided by the portion of
the long-term care specified amount that we have not accelerated to date.
4. The loan extension and paid up death benefit guarantee endorsements will no
longer be applicable at any time once benefits are paid under this rider.
After a period of coverage ends:
1. The face amount of the policy and the long-term care specified amount are
reduced by the accumulated benefit lien amount.
2. The unloaned policy account value will be reduced pro rata to the reduction
in the policy face amount, but not by more than the accumulated benefit lien
amount.
3. Any applicable surrender charges will be reduced pro rata to the reduction
in the policy face amount.
4. The maximum monthly benefit will not be reduced.
5. Any actual premium fund and no-lapse guarantee premium fund values that are
used by us to determine whether a guarantee against policy lapse is in
effect will also be reduced pro rata to the reduction in the policy face
amount.
6. Any remaining balance for an outstanding loan and accrued loan interest will
not be reduced.
7. The accumulated benefit lien amount is reset to zero.
The reduction in your policy account value will reduce your unloaned value in
the guaranteed interest option and your values in the variable investment
options in accordance with your monthly deduction allocation percentages then
in effect. If we cannot make the reduction in this way, we will make the
reduction based on the proportion that your unloaned values in the guaranteed
interest option and your values in the variable investment options bear to the
total unloaned value in your policy account.
After the period of coverage has ended, we will provide you with notice of the
adjusted values.
If the entire long-term care specified amount has been paid out during the
period of coverage, this rider will terminate and the policy may terminate.
. RIDER TERMINATION. This rider will terminate, and no further benefits will be
payable (except as provided under the "Extension of Benefits" provision of this
rider), on the earliest of the following:
1. at any time after the first policy year, on the next monthly anniversary on
or following the date we receive your written request to terminate this
rider;
2. upon termination or surrender of the policy;
3. the date of the insured person's death;
4. the date when the accumulated benefit lien amount equals the current
long-term care specified amount;
5. the effective date of the election of the paid up death benefit guarantee;
6. the date you request payment under a living benefits rider due to terminal
illness of the insured person (whether or not monthly benefit payments are
being made as of such date);
7. the date the policy goes on loan extension; or
8. on the date that a new insured person is substituted for the original
insured person under the terms of any substitution of insured rider.
If this rider does not terminate, it will remain in force as long as the policy
remains in force. This rider may be restored after termination if certain
qualifications for restoration of rider benefits are met.
. EXTENSION OF BENEFITS. If this policy lapses before the current long-term
care specified amount has been paid out, while the insured person is confined
in a long-term care facility, benefits for that confinement may be payable
provided that the confinement began while this rider was in force. Benefits may
continue until the earliest of the following dates: (a) the date the insured
person is discharged from such confinement; (b) the date when the current
long-term care specified amount has been paid; or (c) the date of death of the
insured person. If benefits are payable under this provision, there will be no
death benefit payable to the beneficiary or beneficiaries named in the base
policy.
For tax information concerning the Long Term Care Services/SM/ Rider, see "Tax
Treatment of living benefits rider or Long Term Care Services/SM/ Rider under a
policy with the applicable rider" earlier in this prospectus.
CUSTOMER LOYALTY CREDIT
We provide a customer loyalty credit for policies that have been in force for
more than 8 years. This is added to your policy account value each month. The
dollar amount of the credit is a percentage of the total amount you then have
in your policy account, but excluding any value we are holding as collateral
for any policy loans.
The credit begins in the policy's 9th year. The percentage credit is currently
at an annual rate as described in the charts below depending upon the issue age
of the insured, the policy duration and the level at which the policy is
funded. If at the end of the first 7 policy years, the cumulative amount of
premiums that you have paid to date (less any partial withdrawals) is less than
17 "target premiums" for issue ages 18 - 58 or less than 13 "target premiums"
for issue ages 0 - 17 and issue ages 59 and above, the percentage credit will
be as follows:
--------------------------------------------------------------------------
ISSUE CREDIT CREDIT
AGE DURATION AMOUNT DURATION AMOUNT
--------------------------------------------------------------------------
0 - 29 Policy yrs
9 - 35 0.25% Policy yrs 36+ 0.40%
--------------------------------------------------------------------------
30 - 39 Policy yrs
9 - 25 0.20% Policy yrs 26+ 0.35%
--------------------------------------------------------------------------
40 - 49 Policy yrs
9 - 20 0.15% Policy yrs 21+ 0.30%
--------------------------------------------------------------------------
50 - 59 Policy yrs
9 - 15 0.15% Policy yrs 16+ 0.20%
--------------------------------------------------------------------------
60 + Policy yrs
9+ 0.15%
--------------------------------------------------------------------------
|
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
Otherwise, the percentage credit will be as follows:
--------------------------------------------------------------------------
ISSUE CREDIT CREDIT
AGE DURATION AMOUNT DURATION AMOUNT
--------------------------------------------------------------------------
0 - 29 Policy yrs
9 - 30 0.25% Policy yrs 31+ 0.55%
--------------------------------------------------------------------------
30 - 39 Policy yrs
9 - 20 0.25% Policy yrs 21+ 0.55%
--------------------------------------------------------------------------
40 - 49 Policy yrs
9 - 15 0.25% Policy yrs 16+ 0.50%
--------------------------------------------------------------------------
50 - 59 Policy yrs
9 - 10 0.25% Policy yrs 11+ 0.50%
--------------------------------------------------------------------------
60 + Policy yrs
9+ 0.25%
--------------------------------------------------------------------------
|
The "target premium" is actuarially determined for each policy, based on that
policy's characteristics, as well as the policy's face amount. The
illustrations of Policy Benefits that your financial professional will provide
will contain more information regarding the amount of premiums that must be
paid in order for the higher percentage credit to be applicable to your policy.
This credit is not guaranteed.
VARIATIONS AMONG INCENTIVE LIFE OPTIMIZER(R) POLICIES
Time periods and other terms and conditions described in this prospectus may
vary due to legal requirements in your state. These variations will be
reflected in your policy.
AXA Equitable also may vary or waive the charges (including surrender charges)
and other terms of Incentive Life Optimizer(R) where special circumstances
(including certain policy exchanges) result in sales or administrative expenses
or mortality risks that are different from those normally associated with
Incentive Life Optimizer(R). We will make such variations only in accordance
with uniform rules that we establish.
AXA Equitable or your financial professional can advise you about any
variations that may apply to your policy.
YOUR OPTIONS FOR RECEIVING POLICY PROCEEDS
BENEFICIARY OF DEATH BENEFIT. You designate your policy's beneficiary in your
policy application. You can change the beneficiary at any other time during the
insured person's life. If no beneficiary is living when the insured person
dies, we will pay the death benefit proceeds in equal shares to the insured
person's surviving children. If there are no surviving children, we will
instead pay the insured person's estate.
PAYMENT OF DEATH BENEFIT. We will pay any death benefit in a single sum. If the
beneficiary is a natural person (i.e., not an entity such as a corporation or a
trust) and so elects, death benefit proceeds can be paid through the "AXA
Equitable Access Account", which is a draft account that works in certain
respects like an interest-bearing checking account. In that case, we will send
the beneficiary a draftbook, and the beneficiary will have immediate access to
the proceeds by writing a draft for all or part of the amount of the death
benefit proceeds. AXA Equitable will retain the funds until a draft is
presented for payment. Interest on the AXA Equitable Access Account is earned
from the date we establish the account until the account is closed by your
beneficiary or by us if the account balance falls below the minimum balance
requirement, which is currently $1,000. The AXA Equitable Access Account is
part of AXA Equitable's general account and is subject to the claims of our
creditors. We will receive any investment earnings during the period such
amounts remain in the general account. The AXA Equitable Access Account is not
a bank account or a checking account and it is not insured by the FDIC. Funds
held by insurance companies in the general account are guaranteed by the
respective state guaranty association.
A beneficiary residing outside the U.S., however, cannot elect the AXA
Equitable Access Account. If the beneficiary is a trust that has two or fewer
trustees, death benefit proceeds can be paid through the AXA Equitable Access
Account.
If a financial professional has assisted the beneficiary in preparing the
documents that are required for payment of the death benefit, we will send the
AXA Equitable Access Account checkbook or check to the financial professional
within the periods specified for death benefit payments under "When we pay
policy proceeds," later in this prospectus. Our financial professionals will
take reasonable steps to arrange for prompt delivery to the beneficiary.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for information purposes only. Since the contracts are no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You may cancel your policy by returning the policy along with a properly signed
and completed written request for cancellation to our Administrative Office or,
in some states, to the agent who sold it to you, by the 10th day after you
receive it (or such longer period as required under state law). Your coverage
will terminate as of the business day we receive your request at our
Administrative Office (or, in some states, as of the business day the agent
receives your request).
In most states, we will refund the premiums that were paid, less any
outstanding loan and accrued loan interest. In other states, we will refund the
policy account value calculated as of the business day we receive your request
for cancellation at our Administrative Office (or, in some states, as of the
business day the agent receives your request), plus any charges that were
deducted from premiums that were paid and from the policy account value, less
any outstanding loan and accrued loan interest. Your policy will set forth the
specific terms of your "Right to Examine" the policy.
In addition to the cancellation right described above, you have the right to
surrender your policy, rather than cancel it. Please see "Surrendering your
policy for its net cash surrender value," earlier in this prospectus.
Surrendering your policy may yield results different than canceling your
policy, including a greater potential for taxable income. In some cases, your
cash value upon surrender may be greater than your contributions to the policy.
Please see "Tax information," earlier in this prospectus for possible
consequences of cancelling your policy.
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10. More information about certain policy charges
DEDUCTING POLICY CHARGES
PURPOSES OF POLICY CHARGES. The charges under the policies are designed to
cover, in the aggregate, our direct and indirect costs of selling,
administering and providing benefits under the policies. They are also
designed, in the aggregate, to compensate us for the risks of loss we assume
pursuant to the policies. If, as we expect, the charges that we collect from
the policies exceed our total costs in connection with the policies, we will
earn a profit. Otherwise, we will incur a loss. In addition to the charges
described below, there are also charges at the Portfolio level, which are
described in the prospectuses of the Portfolios in which the funds invest. For
additional information on all policy charges, see "Risk/benefit summary:
Charges and expenses you will pay."
TRANSACTION CHARGES
On the first day of each policy month, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below (see "Periodic charges" below). In addition, charges may be deducted for
transactions such as premium payments, policy surrenders, requested decreases
in face amount, or transfers among investment options.
. PREMIUM CHARGE. We deduct an amount not to exceed 6% from each premium
payment you send us. Currently, we reduce this charge to 4% after an amount
equal to two "target premiums" has been paid. The "target premium" is
actuarially determined for each policy, based on that policy's specific
characteristics, as well as the policy's face amount, among other factors. In
addition, if your policy includes the Cash Value Plus Rider, a portion of the
deductions from premiums will be refunded upon surrender within the first three
policy years (see "Cash Value Plus Rider" in "More information about policy
features and benefits" earlier in this prospectus). A similar charge applies to
premiums attributed to requested face amount increases that are above your
highest previous face amount. The premium charge is designed in part to defray
sales and tax expenses we incur that are based on premium payments.
. SURRENDER CHARGES. If you give up this policy for its net cash surrender
value before the end of the tenth policy year, or within the first ten years
after a face amount increase over the previous highest base policy face amount,
we will subtract a surrender charge from your policy account value. The
surrender charge in the first policy month of each policy year is shown in your
policy. The initial surrender charge will be between $8.90 and $46.10 per
$1,000 of initial base policy face amount, or base policy face amount increase.
The surrender charge declines uniformly in equal monthly amounts within each
policy year until it reaches zero in the twelfth month of policy year ten. The
initial amount of surrender charge depends on each policy's specific
characteristics. In addition, if your policy includes the Cash Value Plus
Rider, the surrender charges are reduced (see "Cash Value Plus Rider" in "More
information about policy features and benefits" earlier in this prospectus).
Changes in the base policy face amount resulting from a change in death benefit
option will not be considered in computing the previous highest face amount.
The surrender charges are contingent deferred sales charges. They are
contingent because you only pay them if you surrender your policy for its net
cash surrender value (or request a reduction in its face amount, as described
below). They are deferred because we do not deduct them from your premiums.
Because the surrender charges are contingent and deferred, the amount we
collect in a policy year is not related to actual expenses for that year.
The surrender charges assessed in connection with giving up this policy or with
reductions in policy face amount are intended, in part, to compensate us for
the fact that it takes us time to make a profit on your policy, and if you give
up or reduce the face amount of your policy in its early years, we do not have
the time to recoup our costs.
. REQUEST A DECREASE IN YOUR POLICY'S FACE AMOUNT. If there is a requested base
policy face amount reduction within the first ten policy years or within ten
years following a face amount increase, or the paid-up death benefit guarantee
is elected for a reduced amount during a surrender charge period, a
proportionate surrender charge will be deducted from your policy account value.
Assuming you have not previously changed the base policy face amount, a
proportionate surrender charge will be determined by dividing the amount of the
reduction in base policy face amount by the initial base policy face amount of
insurance, and then multiplying that fraction by the surrender charge
immediately before the reduction. The proportionate surrender charge will not
exceed the unloaned policy account value at the time of the reduction. If a
proportionate surrender charge is made, the remaining surrender charge will be
reduced proportionately. We will not deduct a proportionate surrender charge if
the reduction resulted from a change in death benefit option or a partial
withdrawal.
If there have been prior increases in face amount, the decrease will be deemed
to cancel, first, each increase in reverse chronological order (beginning with
the most recent) and then the initial face amount. We will deduct from your
policy account value any surrender charge that is associated with any portion
of the face amount that is thus deemed to be canceled.
. TRANSFERS AMONG INVESTMENT OPTIONS. Although we do not currently charge for
transfers among investment options, we reserve the right to make a transfer
charge up to $25 for each transfer of amounts among your investment options.
The transfer charge, if any, is deducted from the amounts transferred from your
policy's value in the variable investment options and in our guaranteed
interest option based on the proportion that the amount transferred from each
variable investment option and from our guaranteed interest option bears to the
total amount being transferred. Any such charge would be, in part, to
compensate us for our expenses in administering transfers. The charge will
never apply to a transfer of all of your variable investment option amounts to
our guaranteed interest option, or to any transfer pursuant to our automated
transfer service or asset rebalancing service.
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SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service. For
certain services, we will deduct from your policy account value any withdrawal
charge that applies and the charge for the special service. Please note that we
may discontinue some or all of these services without notice.
. WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
. EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the
amount you request.
. POLICY ILLUSTRATION CHARGE. We do not charge for illustrations. We reserve
the right to charge in the future.
. DUPLICATE POLICY CHARGE. We charge $35 for providing a copy of your policy.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our Administrative Office, or
(iii) by any other means we make available to you.
. POLICY HISTORY CHARGE. We charge a maximum of $50 for providing you a history
of policy transactions. If you request a policy history of less than 5 years
from the date of your request, there is no charge. If you request a policy
history of more than 5 years but less than 10 years from the date of your
request, the current charge is $25. For policy histories of 10 years or more,
the charge is $50. For all policy histories, we reserve the right to charge a
maximum of $50. The charge for this service can be paid (i) using a credit card
acceptable to AXA Equitable, (ii) by sending a check to our Administrative
Office, or (iii) by any other means we make available to you.
. CHARGE FOR RETURNED PAYMENTS. For each payment you make in connection with
your policy is returned for insufficient funds, we will charge a maximum of $25.
PERIODIC CHARGES
On the first day of each month of the policy, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below.
. ADMINISTRATIVE CHARGE. In the first policy year, we deduct $15 from your
policy account value at the beginning of each policy month. In all subsequent
policy years (but not beyond the policy anniversary when the insured person is
attained age 100), we deduct $10 from your policy account value at the
beginning of each policy month. We reserve the right to increase or decrease
this latter amount in the future, although it will never exceed $10. However,
the $15 monthly charge and the $10 monthly charge will not be applicable if the
minimum face amount stated in your policy is $10,000. Please see "Your policy's
face amount" under "About your life insurance benefit" in "Risk/benefit
summary: Policy features, benefits and risks" earlier in this prospectus. In
addition, we deduct between $0.06 and $0.30 per $1,000 of your initial base
policy face amount and any face amount increase at the beginning of each policy
month in the first ten policy years and any 10 year period following a face
amount increase. The administrative charge is intended, in part, to compensate
us for the costs involved in administering the policy.
. COST OF INSURANCE CHARGE. The cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured and the policy year. The monthly cost of
insurance charge is determined by multiplying the cost of insurance rate that
is then applicable to your policy by the amount we have at risk under your
policy divided by $1,000. Our amount at risk (also described in your policy as
"net amount at risk") on any date is the difference between (a) the death
benefit that would be payable if the insured person died on that date and
(b) the then total account value under the policy. A greater amount at risk, or
a higher cost of insurance rate, will result in a higher monthly charge. The
cost of insurance rates are intended, in part, to compensate us for the cost of
providing insurance to you under your policy.
Generally, the cost of insurance rate increases from one policy year to the
next. This happens automatically because of the insured person's increasing age.
On a guaranteed basis, we may deduct between $0.02 and $83.34 per $1,000 of the
amount for which we are at risk under your policy from your policy account
value each month (but not beyond the policy anniversary date when the insured
person is attained age 100). As the amount for which we are at risk at any time
is the death benefit (calculated as of that time) minus your policy account
value at that time, changes in your policy account value resulting from the
performance of your investment options can affect your amount at risk, and as a
result, your cost of insurance. Our cost of insurance rates are guaranteed not
to exceed the maximum rates specified in your policy. For most insured persons
at most ages, our current (non-guaranteed) rates are lower than the maximum
rates. However, we have the ability to raise these rates up to the guaranteed
maximum at any time, subject to any necessary regulatory approvals.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life Optimizer(R) policies for insureds who are age 18 or above are based on
the 2001 Commissioner's Standard Ordinary 80% Male, 20% Female, Smoker or
Nonsmoker Ultimate Age Nearest Birthday Mortality Table. The guaranteed maximum
cost of insurance rates for gender neutral Incentive Life Optimizer(R) policies
for insureds who are under age 18 are based on the 2001 Commissioner's Standard
Ordinary 80% Male, 20% Female Composite Ultimate Age Nearest Birthday Mortality
Tables. For all other policies, for insureds who are age 18 or above, the
guaranteed maximum cost of insurance rates are based on the 2001 Commissioner's
Standard Ordinary Male or Female, Smoker or Nonsmoker Ultimate Age Nearest
Birthday Mortality Tables. For insureds who are under age 18, the guaranteed
maximum cost of insurance rates are based on the 2001 Commissioner's Standard
Ordinary Male or Female Composite Ultimate Age Nearest Birthday Mortality
Tables.
Our cost of insurance rates will generally be lower (except for gender-neutral
policies and in connection with certain employee benefit plans) if the insured
person is a female than if a male. They also will generally be lower for
non-tobacco users than tobacco users and lower for persons that have other
highly favorable health characteristics, as compared to those that do not. On
the other hand, insured persons who present particular health, occupational or
avocational risks may be charged higher cost of insurance rates and other
additional charges as specified in their policies. In addition, the current
(non-guaranteed) rates also vary depending on the duration of the policy (i.e.,
the length of time since the policy was issued).
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For policies issued at ages 0-17, an insured person's cost of insurance rate is
not based on that person's status as a tobacco user or non-tobacco user.
Effective with the policy anniversary when that insured person reaches attained
age 18, non-tobacco user cost of insurance rates will be charged for that
person. That insured person may also be eligible for a more favorable rating,
subject to our underwriting rules.
We offer lower rates for non-tobacco users only if they are at least age 18.
You may generally ask us to review the tobacco habits of an insured person
issue age 18 or over in order to change the charge from tobacco user rates to
non-tobacco user rates. The change, if approved, may result in lower future
cost of insurance rates beginning on the effective date of the change to
non-tobacco user rates.
The change will be based upon our general underwriting rules in effect at the
time of application, and may include criteria other than tobacco use status as
well as a definition of tobacco use different from that applicable at the time
this policy was issued.
Similarly, after the first policy year, you may request us to review the
insured person's rating to see if they qualify for a reduction in future cost
of insurance rates. Any such change will be based upon our general underwriting
rules in effect at the time of application, and may include various criteria.
For information concerning possible limitations on any changes, please see
"Other information" in "Tax information" earlier in this prospectus.
The change in rates, if approved, will take effect at the beginning of the
policy month that coincides with or next follows the date we approve your
request. This change may have adverse tax consequences.
For policies with a minimum stated face amount of $25,000 which are issued as a
result of an option to purchase additional insurance election or a conversion
from a term life policy or rider, our cost of insurance rates also depend on
how large the face amount is at the time we deduct the charge. Generally, under
these circumstances, the current (non-guaranteed) cost of insurance rates are
lower for face amounts of $100,000 and higher. For this purpose, however, we
will take into account all face amount decreases, whatever their cause.
Therefore, a decrease in face amount may cause your cost of insurance rates to
go up.
. MORTALITY AND EXPENSE RISK CHARGE. We will collect a monthly charge for
mortality and expense risk. We are committed to fulfilling our obligations
under the policy and providing service to you over the lifetime of your policy.
Despite the uncertainty of future events, we guarantee that monthly
administrative and cost of insurance deductions from your policy account value
will never be greater than the maximum amounts shown in your policy. In making
this guarantee, we assume the mortality risk that insured persons (as a group)
will live for shorter periods than we estimated. When this happens, we have to
pay a greater amount of death benefit than we expected to pay in relation to
the cost of insurance charges we received. We also assume the expense risks
that the cost of issuing and administering policies will be greater than we
expected. This charge is designed, in part, to compensate us for taking these
risks.
We deduct a monthly charge at an annual rate of 0.85% of the value in your
policy's variable investment options during the first 8 policy years, with no
charge in policy year 9 and thereafter. We reserve the right to increase or
decrease this charge in the future, although it will never exceed 1.00% during
policy years 1-10, and 0.50% during policy years 11 and later. This charge will
be calculated at the beginning of each policy month as a percentage of the
amount of the policy account that is then allocated to the variable investment
options.
. LOAN INTEREST SPREAD. We charge interest on policy loans but credit you with
interest on the amount of the policy account we hold as collateral for the
loan. The loan interest spread is the excess of the interest rate we charge
over the interest rate we credit. The loan interest spread will not exceed 1%.
We deduct this charge on each policy anniversary date, or on loan termination,
if earlier. For more information on how this charge is deducted, see "Borrowing
from your policy" under "Accessing your money" earlier in this prospectus. As
with any loan, the interest we charge on the loans is intended, in part, to
compensate us for the time value of the money we are lending and the risk that
you will not repay the loan.
OPTIONAL RIDER CHARGES
If you elected the following riders, the following charges, which are designed
to offset the cost of their respective riders, are deducted from your policy
account value, on the first day of each month of the policy (except for the
Cash Value Plus Rider which has a one-time charge). The costs of each of the
riders below are designed, in part, to compensate us for the additional
insurance risk we take on in providing each of these riders and the
administrative costs involved in administering them:
. CHILDREN'S TERM INSURANCE. If you chose this rider, we deduct $0.50 per
$1,000 of rider benefit amount from your policy account value each month until
the insured under the base policy reaches age 65, while the rider is in effect.
The charge for this rider does not vary depending upon the specifics of your
policy. However, we will continue to charge you for the rider, even after all
of your children, stepchildren and legally adopted children have reached age 25
(when a child's coverage under the rider terminates), unless you notify us in
writing that you wish to cancel this rider.
. DISABILITY DEDUCTION WAIVER. If you chose this rider, we deduct an amount
from your policy account value each month until the insured under the base
policy reaches age 65, while the rider is in effect. This amount is between 7%
and 132% of all the other monthly charges (including charges for other riders
elected) deducted from your policy account value on a guaranteed basis. The
current monthly charges for this rider are lower than the maximum monthly
charges.
. DISABILITY PREMIUM WAIVER. If you chose this rider, we deduct an amount from
your policy account value each month while the rider is in effect. This amount
is between $0.02 and $0.60 per $1,000 of initial base policy face amount. We
will establish a similar charge for requested base policy face amount
increases. If you also select certain of the other optional riders available
under your policy, we will deduct additional amounts from your policy account
value per $1,000 of rider benefit amount each month while both the other rider
and this rider are in effect. If you choose the option to purchase additional
insurance, we will deduct an amount between $0.02 and $0.07. If you choose the
children's term insurance, we will deduct an amount between $0.01 and $0.03. If
you choose the Long Term Care Services/SM/ Rider, we will deduct an amount
between $0.0009 and $0.02. These amounts are in addition to the charges for the
riders themselves.
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. LONG TERM CARE SERVICES/SM/ RIDER. If you chose this rider, on a guaranteed
basis we may deduct between $0.08 and $1.18 per $1,000 of the amount for which
we are at risk under the rider from your policy account value each month until
the insured under the base policy reaches age 100 while the rider is in effect,
but not when rider benefits are being paid. The amount at risk for this rider
is the long-term care specified amount minus your policy account value, but not
less than zero. The current monthly charges for this rider are lower than the
maximum monthly charges.
. OPTION TO PURCHASE ADDITIONAL INSURANCE. If you chose this rider, we deduct
between $0.04 and $0.17 per $1,000 of the option to purchase additional
insurance from your policy account value each month until the insured under the
base policy reaches age 40 while the rider is in effect.
. CASH VALUE PLUS RIDER. If you chose this rider, we deduct a one-time charge
of $250 for the rider and the rider charge will be deducted in a lump sum from
the initial net premium, after deduction of the premium charge.
. ADDING A LIVING BENEFITS RIDER. If you elect the living benefits rider after
the policy is issued, we will deduct $100 from your policy account value at the
time of the transaction. This fee is designed, in part, to compensate us for
the administrative costs involved in processing the request.
EXERCISE OF OPTION TO RECEIVE A TERMINAL ILLNESS "LIVING BENEFIT." If you elect
to receive a terminal illness "living benefit," we will deduct up to $250 from
any living benefit we pay. This fee is designed, in part, to compensate us for
the administrative costs involved in processing the request.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
. Management fees.
. 12b-1 fees.
. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
. Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. Certain portfolios available under the contract
in turn invest in shares of other portfolios of AXA Premier VIP Trust and EQ
Advisors Trust and/or shares of unaffiliated portfolios (collectively, the
"underlying portfolios"). The underlying portfolios each have their own fees
and expenses, including management fees, operating expenses, and investment
related expenses such as brokerage commissions. For more information about
these charges, please refer to the prospectuses for the Trusts.
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11. More information about procedures that apply to your policy
This section provides further detail about certain subjects that are addressed
in the previous pages. The following discussion generally does not repeat the
information already contained in those pages.
DATES AND PRICES AT WHICH POLICY EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your policy will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
DATE OF RECEIPT. Where this prospectus refers to the day when we receive a
payment, request, election, notice, transfer or any other transaction request
from you, we usually mean the day on which that item (or the last thing
necessary for us to process that item) arrives in complete and proper form at
our Administrative Office or via the appropriate telephone or fax number if the
item is a type we accept by those means. There are two main exceptions: if the
item arrives (1) on a day that is not a business day or (2) after the close of
a business day, then, in each case, we are deemed to have received that item on
the next business day.
BUSINESS DAY. Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). A business day
does not include a day on which we are not open due to emergency conditions
determined by the Securities and Exchange Commission. We may also close early
due to such emergency conditions. We compute unit values for our variable
investment options as of the end of each business day.
PAYMENTS YOU MAKE. The following are reflected in your policy as of the date we
receive them in complete and proper form:
. premium payments received after the policy's investment start date
(discussed below)
. loan repayments and interest payments
REQUESTS YOU MAKE. The following transactions occur as of the date we receive
your request in complete and proper form:
. withdrawals
. tax withholding elections
. face amount decreases that result from a withdrawal
. changes of allocation percentages for premium payments or monthly deductions
. surrenders
. changes of owner
. changes of beneficiary
. transfers from a variable investment option to the guaranteed interest
option
. loans
. transfers among variable investment options
. assignments
. termination of paid up death benefit guarantee
The following transactions occur on your policy's next monthly anniversary that
coincides with or follows the date we approve your request:
. changes in face amount
. election of paid up death benefit guarantee
. changes in death benefit option
. changes of insured person
. restoration of terminated policies
. termination of any additional benefit riders you have elected
AUTOMATIC TRANSFER SERVICE. Transfers pursuant to our automatic transfer
service (dollar-cost averaging) occur as of the first day of each policy month.
If you request the automatic transfer service in your original policy
application, the first transfer will occur as of the first day of the second
policy month after your policy's initial Allocation Date. If you request this
service at any later time, we make the first such transfer as of your policy's
first monthly anniversary that coincides with or follows the date we receive
your request.
ASSET REBALANCING SERVICE. If you request the asset rebalancing service, the
first redistribution will be on the date you specify or the date we receive
your request, if later. However, no rebalancing will occur before your policy's
Allocation Date. Subsequent periodic rebalancings occur quarterly, semiannually
or annually, as you have requested.
DELAY IN CERTAIN CASES. We may delay allocating any payment you make to our
variable investment options, or any transfer, for the same reasons stated in
"Delay of variable investment option proceeds" later in this prospectus. We may
also delay such transactions for any other legally permitted purpose.
PRICES APPLICABLE TO POLICY TRANSACTIONS. If a transaction will increase or
decrease the amount you have in a variable investment option as of a certain
date, we process the transaction using the unit values for that option computed
as of that day's close of business, unless that day is not a business day. In
that case, we use unit values computed as of the next business day's close.
EFFECT OF DEATH OR SURRENDER. You may not make any surrender or partial
withdrawal request after the insured person has died. Also, all insurance
coverage ends on the date as of which we process any request for a surrender.
POLICY ISSUANCE
REGISTER DATE. When we issue a policy, we assign it a "register date," which
will be shown in the policy. We measure the months, years, and anniversaries of
your policy from your policy's register date.
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. If you submit the full minimum initial premium to your financial
professional at the time you sign the application and before the policy is
issued, and we issue the policy as it was applied for, then the register
date will be the later of (a) the date you signed part I of the policy
application or (b) the date a medical professional signed part II of the
policy application.
. If we do not receive your full minimum initial premium at our
Administrative Office before the issue date or, if we issue the policy on a
different basis than you applied for, the register date initially will
appear on your policy as the date the policy is issued; however, we will
move the register date to the date we deliver the policy provided we
received your full minimum initial premium. This will ensure that premiums
and charges will commence on the same date as your insurance coverage. If
your policy was delivered on the 29th, 30th or 31st of the month, we will
move the register date to the 1st of the following month. We will determine
the interest rate applicable to the guaranteed interest option based on the
Register Date. This rate will be applied to funds allocated to the
guaranteed interest option as of the date we receive the full minimum
initial premium at our Administrative Office.
We may also permit an earlier than customary register date (a) for
employer-sponsored cases, to accommodate a common register date for all
employees or (b) to provide a younger age at issue. (A younger age at issue
reduces the monthly charges that we deduct under a policy.) The charges and
deductions commence as of the register date, even when we have permitted an
early register date. We may also permit policy owners to delay a register date
(up to three months) in employer-sponsored cases.
INVESTMENT START DATE. This is the business day your investment first begins to
earn a return for you. Generally, this is the later of: (1) the business day we
receive the full minimum initial premium at our Administrative Office; and
(2) the register date of your policy. Before this date, your initial premium
will be held in a non-interest bearing account.
COMMENCEMENT OF INSURANCE COVERAGE. You must give the full minimum initial
premium to your financial professional on or before the day the policy and all
amendments are delivered to you. No insurance under your policy will take
effect unless (1) the insured person is still living at the time such payment
and all delivery requirements are completed and (2) the information in the
application continues to be true and complete, without material change, as of
the date the policy and all amendments are delivered to you and all delivery
requirements have been completed and the full minimum initial premium is paid.
If you submit the full minimum initial premium with your application, we may,
subject to certain conditions, provide a limited amount of temporary insurance
on the proposed insured person. You may request and review a copy of our
temporary insurance agreement for more information about the terms and
conditions of that coverage.
NON-ISSUANCE. If, after considering your application, we decide not to issue a
policy, we will refund any premium you have paid, without interest.
AGE; AGE AT ISSUE. Unless the context in this prospectus requires otherwise, we
consider the insured person's "age" during any policy year to be his or her age
on his or her birthday nearest to the beginning of that policy year. For
example, the insured person's age for the first policy year ("age at issue") is
that person's age on whichever birthday is closer to (i.e., before or after)
the policy's register date.
WAYS TO MAKE PREMIUM AND LOAN PAYMENTS
CHECKS AND MONEY ORDERS. Premiums or loan payments generally must be paid by
check or money order drawn on a U.S. bank in U.S. dollars and made payable to
"AXA Equitable Life Insurance Company."
We prefer that you make each payment to us with a single check drawn on your
business or personal bank account. We also will accept a single money order,
bank draft or cashier's check payable directly to AXA Equitable, although we
must report such "cash equivalent" payments to the Internal Revenue Service
under certain circumstances. Cash and travelers' checks, or any payments in
foreign currency, are not acceptable. We will accept third-party checks payable
to someone other than AXA Equitable and endorsed over to AXA Equitable only
(1) as a direct payment from a qualified retirement plan or (2) if they are
made out to a trustee who owns the policy and endorses the entire check
(without any refund) as a payment to the policy.
ASSIGNING YOUR POLICY
You may assign (transfer) your rights in a policy to someone else as collateral
for a loan, to effect a change of ownership or for some other reason, if we
agree. Collateral assignments may also sometimes be used in connection with
dividing the benefits of the policy under a split-dollar arrangement, which
will also have its own tax consequences. A copy of the assignment must be
forwarded to our Administrative Office. We are not responsible for any payment
we make or any action we take before we receive notice of the assignment or for
the validity of the assignment. An absolute assignment is a change of ownership.
Certain transfers for value may subject you to income tax and penalties and
cause the death benefit to lose its income-tax free treatment. Further, a gift
of a policy that has a loan outstanding may be treated as part gift and part
transfer for value, which could result in both gift tax and income tax
consequences. The IRS issued regulations in both 2002 and 2003 concerning
split-dollar arrangements, including policies subject to collateral
assignments. The regulations provide both new and interim guidance as to the
taxation of such arrangements. These regulations address taxation issues in
connection with arrangements which are compensatory in nature, involve a
shareholder and corporation, or a donor and donee. See also discussion under
"Split-dollar and other employee benefit programs" and "Estate, gift, and
generation-skipping taxes" in the "Tax information" section of this prospectus.
You should consult your tax advisor prior to making a transfer or assignment.
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
If your policy has this substitution of insured person rider and after the
policy's second year, we will permit you to request that a new insured person
replace the existing one subject to our rules then in effect. This requires
that you provide us with adequate evidence that the proposed new insured person
meets our requirements for insurance. Other requirements are outlined in your
policy.
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Upon making this change, the monthly insurance charges we deduct will be based
on the new insured person's insurance risk characteristics. In addition, any
no-lapse guarantee and Long Term Care Services/SM/ Rider will terminate. It may
also affect the face amount that a policy will have if you subsequently elect
the paid up death benefit guarantee. The change of insured person will not,
however, affect the surrender charge computation for the amount of coverage
that is then in force.
Substituting the insured person is a taxable event and may, depending upon
individual circumstances, have other tax consequences as well. For example, the
change could cause the policy to be a "modified endowment contract" or to fail
the Internal Revenue Code's definition of "life insurance," or in some cases
require that we also distribute certain amounts to you from the policy. See
"Tax information" earlier in this prospectus. You should consult your tax
advisor prior to substituting the insured person. As a condition to
substituting the insured person we may require you to sign a form acknowledging
the potential tax consequences. In no event, however, will we permit a change
that we believe causes your policy to fail the definition of life insurance or
causes the policy to lose its ability to be tested under the 2001 CSO tables.
See "Other information" under "Tax information" earlier in this prospectus.
Also, if the paid up death benefit guarantee is in effect or your policy is on
loan extension, you may not request to substitute the insured person.
REQUIREMENTS FOR SURRENDER REQUESTS
Your surrender request must include the policy number, your name, your taxpayer
identification number, the name of the insured person, and the address where
proceeds should be mailed. The request must be signed by you, as the owner, and
by any joint owner, collateral assignee or irrevocable beneficiary. We may also
require you to complete specific tax forms, or provide a representation that
your policy is not being exchanged for another life or annuity contract.
GENDER-NEUTRAL POLICIES
Congress and various states have from time to time considered legislation that
would require insurance rates to be the same for males and females. In
addition, employers and employee organizations should consider, in consultation
with counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of Incentive Life Optimizer(R) in connection with an
employment-related insurance or benefit plan. In a 1983 decision, the United
States Supreme Court held that, under Title VII, optional annuity benefits
under a deferred compensation plan could not vary on the basis of sex.
There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life Optimizer(R) policies sold in Montana. We will also make such
gender-neutral policies available on request in connection with certain
employee benefit plans. Cost of insurance rates applicable to a gender-neutral
policy will not be greater than the comparable male rates under a gender
specific Incentive Life Optimizer(R) policy.
FUTURE POLICY EXCHANGES
We may at some future time, under certain circumstances and subject to
applicable law, allow the current owner of this policy to exchange it for a
universal life policy we are then offering. The exchange may or may not be
advantageous to you, based on all of the circumstances, including a comparison
of contractual terms and conditions and charges and deductions. We will provide
additional information upon request at such time as exchanges may be permitted.
BROKER TRANSACTION AUTHORITY
After your policy has been issued, we may accept transfer requests and changes
to your premium allocation instructions or fund transfers by telephone, mail,
facsimile or electronically, and requests for automatic transfer service, asset
rebalancing service and changes to the minimum growth cap rate for MSO in
writing, by mail or facsimile, from your financial professional, provided that
we have your prior written authorization to do so on file. Accordingly, AXA
Equitable will rely on the stated identity of the person placing instructions
as authorized to do so on your behalf. AXA Equitable will not be liable for any
claim, loss, liability or expenses that may arise out of such instructions. AXA
Equitable will continue to rely on this authorization until it receives your
written notification at its processing office that you have withdrawn this
authorization. AXA Equitable may change or terminate telephone or electronic or
overnight mail transfer procedures at any time without prior notice and
restrict facsimile, internet, telephone and other electronic transfer services
because of disruptive transfer activity. AXA Equitable may terminate any such
authorization at any time without prior notice.
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12. More information about other matters
ABOUT OUR GENERAL ACCOUNT
This policy is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a policy's account value or any guaranteed benefits with which the policy
was issued. AXA Equitable is solely responsible to the policy owner for the
policy's account value and such guaranteed benefits. The general obligations
and any guaranteed benefits under the policy are supported by AXA Equitable's
general account and are subject to AXA Equitable's claims paying ability. An
owner should look to the financial strength of AXA Equitable for its claims
paying ability. Assets in the general account are not segregated for the
exclusive benefit of any particular policy or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the New York
State Department of Financial Services and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business.
Interests under the policies in the general account have not been registered
and are not required to be registered under the Securities Act of 1933 because
of exemptions and exclusionary provisions that apply. The general account is
not required to register as an investment company under the Investment Company
Act of 1940 and it is not registered as an investment company under the
Investment Company Act of 1940. The policy is a "covered security" under the
federal securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities law relating to the accuracy and completeness of statements
made in prospectuses.
TRANSFERS OF YOUR POLICY ACCOUNT VALUE
TRANSFERS NOT IMPLEMENTED. If a request cannot be fully administered, only the
part that is in good order will be processed. Any part of the request that
cannot be processed will be denied and an explanation will be provided to you.
This could occur, for example, where the request does not comply with our
transfer limitations, or where you request transfer of an amount greater than
that currently allocated to an investment option.
Similarly, the automatic transfer service will terminate immediately if:
(1) your amount in the EQ/Money Market option is insufficient to cover the
automatic transfer amount; (2) your policy is in a grace period; (3) we receive
notice of the insured person's death; or (4) you have either elected the paid
up death benefit guarantee or your policy is placed on loan extension.
Similarly, the asset rebalancing program will terminate if either (2), (3) or
(4) occurs.
DISRUPTIVE TRANSFER ACTIVITY. You should note that the policy is not designed
for professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy. The policy is not designed to
accommodate programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; and (3) the design of market timing procedures involves inherently
subjective judgments,
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which we seek to make in a fair and reasonable manner consistent with the
interests of all policy owners.
We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us policy
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a policy is identified in connection with potentially disruptive transfer
activity for the first time, a letter is sent to the policy owner explaining
that AXA Equitable has a policy against disruptive transfer activity and that
if such activity continues, certain transfer privileges may be eliminated. If
and when the policy owner is identified a second time as engaged in potentially
disruptive transfer activity under the policy, we currently prohibit the use of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected policy. We or a trust may change the
definition of potentially disruptive transfer activity, the monitoring
procedures and thresholds, any notification procedures, and the procedures to
restrict this activity. Any new or revised policies and procedures will apply
to all policy owners uniformly. We do not permit exceptions to our policies
restricting disruptive transfer activity.
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our policy owners, we will work with the
unaffiliated trust to review policy owner trading activity. Each trust reserves
the right to reject a transfer that it believes, in its sole discretion, is
disruptive (or potentially disruptive) to the management of one of its
portfolios. Please see the prospectuses for the trusts for more information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by policy owners. As of the date of this
prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the policy owner.
Policy owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, policy owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
policy owners may be treated differently than others, resulting in the risk
that some policy owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
TELEPHONE AND INTERNET REQUESTS
If you are a properly authorized person, you may make transfers between
investment options over the Internet as described earlier in this prospectus in
"How to make transfers" under "Transferring your money among our investment
options."
Also, you may make the following additional types of requests by calling the
number under "By Phone:" in "How to reach us" from a touch-tone phone, if the
policy is individually owned and you are the owner or through axa.com or
us.axa.com for those outside the U.S. if you are the individual owner:
. changes of premium allocation percentages
. changes of address
. request forms and statements
. to request a policy loan (loan requests cannot be made online by corporate
policyholders)
. enroll for electronic delivery and view statements/documents online
. to pay your premium or make a loan repayment
For security purposes, all telephone requests are automatically tape-recorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine.
If you wish to enroll through axa.com or us.axa.com for those outside the U.S.,
you must first agree to the terms and conditions set forth in our axa.com or
us.axa.com for those outside the U.S. Online Services Agreement, which you can
find at our website. We will send you a confirmation letter by first class
mail. Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
transactions. We will assume that all instructions received through axa.com or
us.axa.com for those outside the U.S., are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to axa.com
or us.axa.com for those outside the U.S., if we have reason to believe the
instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet
transactions if we have reason to believe that the request compromises the
general security and/or integrity of our automated systems (see discussion of
"Disruptive transfer activity" above).
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Any telephone, Internet or fax transaction request that is not completed by the
close of a business day (which is usually 4:00 p.m. Eastern Time) will be
processed as of the next business day. During times of extreme market activity,
or for other reasons, you may be unable to contact us to make a telephone or
Internet request. If this occurs, you should submit a written transaction
request to our Administrative Office. We reserve the right to discontinue
telephone or Internet transactions, or modify the procedures and conditions for
such transactions, without notifying you, at any time.
CYBERSECURITY
We rely heavily on interconnected computer systems and digital data to conduct
our variable life insurance product business. Because our variable life
insurance product business is highly dependent upon the effective operation of
our computer systems and those of our business partners, our business is
vulnerable to disruptions from utility outages, and susceptible to operational
and information security risks resulting from information systems failure
(e.g., hardware and software malfunctions), and cyber-attacks. These risks
include, among other things, the theft, misuse, corruption and destruction of
data maintained online or digitally, interference with or denial of service,
attacks on websites and other operational disruption and unauthorized use or
abuse of confidential customer information. Such systems failures and
cyber-attacks affecting us, any third party administrator, the underlying
funds, intermediaries and other affiliated or third-party service providers may
adversely affect us and your policy account value. For instance, systems
failures and cyber-attacks may interfere with our processing of policy
transactions, including the processing of orders from our website or with the
underlying funds, impact our ability to calculate your policy account value,
cause the release and possible destruction of confidential customer or business
information, impede order processing, subject us and/or our service providers
and intermediaries to regulatory fines and financial losses and/or cause
reputational damage. Cybersecurity risks may also impact the issuers of
securities in which the underlying funds invest, which may cause the funds
underlying your policy to lose policy account value. While there can be no
assurance that we or the underlying funds or our service providers will avoid
losses affecting your policy due to cyber-attacks or information security
breaches in the future, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
SUICIDE AND CERTAIN MISSTATEMENTS
If an insured person commits suicide within certain time periods, the amount of
death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of an insured person, we will adjust
the amount of any death benefit (and certain rider benefits), as described in
the policy (or rider).
WHEN WE PAY POLICY PROCEEDS
GENERAL. We will generally pay any death benefit, surrender, withdrawal, or
loan within seven days after we receive the request and any other required
items.
CLEARANCE OF CHECKS. We reserve the right to defer payment of that portion of
your policy account value that is attributable to a premium payment or loan
repayment made by check for a reasonable period of time (not to exceed 15 days)
to allow the check to clear the banking system.
DELAY OF GUARANTEED INTEREST OPTION PROCEEDS. We also have the right to defer
payment or transfers of amounts out of our guaranteed interest option for up to
six months. If we delay more than 30 days in paying you such amounts, we will
pay interest of at least 3% per year from the date we receive your request.
DELAY OF VARIABLE INVESTMENT OPTION PROCEEDS. We reserve the right to defer
payment of any death benefit, transfer, loan or other distribution that is
derived from a variable investment option if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings) or trading on that
exchange is restricted; (b) the SEC has declared that an emergency exists, as a
result of which disposal of securities is not reasonably practicable or it is
not reasonably practicable to fairly determine the policy account value; or
(c) the law permits the delay for the protection of owners. If we need to defer
calculation of values for any of the foregoing reasons, all delayed
transactions will be processed at the next available unit values.
DELAY TO CHALLENGE COVERAGE. We may challenge the validity of your insurance
policy or any rider based on any material misstatements in an application you
have made to us. We cannot make such challenges, however, beyond certain time
limits set forth in the policy or rider. If the insured person dies within one
of these limits, we may delay payment of any proceeds until we decide whether
to challenge the policy.
CHANGES WE CAN MAKE
In addition to any of the other changes described in this prospectus, we have
the right to modify how we or Separate Account FP operate. For example, we have
the right to:
. combine two or more variable investment options or withdraw assets relating
to Incentive Life Optimizer(R) from one investment option and put them into
another;
. end the registration of, or re-register, Separate Account FP under the
Investment Company Act of 1940;
. operate Separate Account FP under the direction of a "committee" or
discharge such a committee at any time;
. restrict or eliminate any voting rights or privileges of policy owners (or
other persons) that affect Separate Account FP;
. operate Separate Account FP, or one or more of the variable investment
options, in any other form the law allows. This includes any form that
allows us to make direct investments, in which case we may charge Separate
Account FP an advisory fee. We may make any legal investments we wish for
Separate Account FP. In addition, we may disapprove any change in
investment advisers or in investment policy unless a law or regulation
provides differently.
If we take any action that results in a material change in the underlying
investments of a variable investment option, we will notify you to the extent
required by law. We may, for example, cause the variable investment option to
invest in a mutual fund other than, or in addition to, the Trusts. If you then
wish to transfer the amount you have in that option to another investment
option, you may do so.
We may make any changes in the policy or its riders, require additional premium
payments, or make distributions from the policy to the extent we deem necessary
to ensure that your policy qualifies or continues to
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qualify as life insurance for tax purposes. Any such change will apply
uniformly to all policies that are affected. We will give you written notice of
such changes. Subject to all applicable legal requirements, we also may make
other changes in the policies that do not reduce any net cash surrender value,
death benefit, policy account value, or other accrued rights or benefits.
Whether to make any of the above discussed changes is generally within our
discretion, although some such changes might require us to obtain regulatory or
policy owner approval. Whether regulatory or policy owner approval is required
would depend on the nature of the change and, in many cases, the manner in
which the change is implemented. You should not assume, therefore, that you
necessarily will have an opportunity to approve or disapprove any such changes.
We will, of course, comply with applicable legal requirements, including notice
to or approval by policy owners where required in particular cases.
It is not possible to foresee all of the circumstances under which we may find
it necessary or appropriate to exercise our right to make changes. Such
circumstances could, however, include changes in law, or interpretations
thereof; changes in financial or investment market conditions; changes in
accepted methods of conducting operations in the relevant market; or a desire
to achieve material operating economies or efficiencies.
REPORTS WE WILL SEND YOU
Shortly after the end of each year of your policy, we will send you a report
that includes information about your policy's current death benefit, policy
account value, cash surrender value (i.e., policy account value minus any
current surrender charge), policy loans, policy transactions and amounts of
charges deducted. We will send you individual notices to confirm your premium
payments, loan repayments, transfers and certain other policy transactions.
Please promptly review all statements and confirmations and notify us
immediately at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside
of the U.S.) if there are any errors.
DISTRIBUTION OF THE POLICIES
The policies are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account FP. The
offering of the policies is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Equitable Holdings, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors
are registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The policies are sold by financial professionals of AXA Advisors and its
affiliates. The policies are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with AXA
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on policies sold.
AXA Equitable may also make additional payments to the Distributors, and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. All payments will be in compliance with all applicable FINRA
rules and other laws and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its policies, none of
the compensation paid to the Distributors or the Selling broker-dealers
discussed in this section of the prospectus are imposed as separate fees or
charges under your policy. AXA Equitable, however, intends to recoup amounts it
pays for distribution and other services through the fees and charges of the
policy and payments it receives for providing administrative, distribution and
other services to the Portfolios. For information about the fees and charges
under the policy, see "Risk/benefit summary: Charges and expenses you will pay"
and "More information about certain policy charges" earlier in this prospectus.
As used below, the "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount and Distributor, among other factors.
AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors
based on premium payments made on the policies sold through AXA Advisors
("premium-based compensation"). The premium-based compensation will generally
not exceed 99% of premiums you pay up to one target premium in your policy's
first year; plus 8.5% of all other premiums you pay in your policy's first
year; plus 11% of all other premiums you pay in policy years two and later. AXA
Advisors, in turn, may pay a portion of the premium-based compensation received
from AXA Equitable to the AXA Advisors financial professional and/or the
Selling broker-dealer making the sale. Your AXA Advisors financial professional
will receive premium-based compensation on a policy in combination with ongoing
annual compensation based on a percentage of the unloaned account value of the
policy sold ("asset-based compensation"). The compensation paid by AXA Advisors
varies among financial professionals and among Selling broker-dealers. AXA
Advisors also pays a portion of the compensation it receives to its managerial
personnel. When a policy is sold by a Selling broker-dealer, the Selling
broker-dealer, not AXA Advisors, determines the amount and type of compensation
paid to the Selling broker-dealer's financial professional for the sale of the
policy. Therefore, you should contact your financial professional for
information about the compensation he or she receives and any related
incentives, as described below.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their policy.
AXA Advisors also pays its financial professionals and managerial personnel
other types of compensation including service fees, expense allowance payments
and health and retirement benefits. AXA Advisors also pays its financial
professionals, managerial personnel and Selling broker-dealers sales bonuses
(based on selling certain products during specified periods) and persistency
bonuses. AXA Advisors may offer sales incentive programs to financial
professionals and Selling broker-dealers who meet specified production levels
for the sales of both AXA Equitable policies and policies offered by other
companies. These incentives provide non-cash compensation such as stock
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MORE INFORMATION ABOUT OTHER MATTERS
options awards and/or stock appreciation rights, expense-paid trips,
expense-paid education seminars and merchandise.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of premium-based compensation and/or asset-based
compensation for the sale of an AXA Equitable policy than it pays for the sale
of a policy or other financial product issued by a company other than AXA
Equitable. AXA Advisors may pay higher compensation on certain products in a
class than others based on a group or sponsored arrangement, or between older
and newer versions or series of the same policy. This practice is known as
providing "differential compensation." Differential compensation may involve
other forms of compensation to AXA Advisors personnel. Certain components of
the compensation paid to managerial personnel are based on whether the sales
involve AXA Equitable policies. Managers earn higher compensation (and credits
toward awards and bonuses) if the financial professionals they manage sell a
higher percentage of AXA Equitable policies than products issued by other
companies. Other forms of compensation provided to its financial professionals
and/or managerial personnel include health and retirement benefits, expense
reimbursements, marketing allowances and premium-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
policies and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable policy over a policy or
other financial product issued by a company not affiliated with AXA Equitable.
However, under applicable rules of FINRA and other federal and state regulatory
authorities, AXA Advisors financial professionals may only recommend to you
products that they reasonably believe are suitable for you and, for certain
accounts depending on applicable rules, that are in your best interest, based
on the facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals of AXA Advisors may nonetheless face conflicts of interest
because of the differences in compensation from one product category to
another, and because of differences in compensation among products in the same
category. For more information, contact your financial professional.
AXA DISTRIBUTORS COMPENSATION. AXA Equitable pays premium-based and asset-based
compensation (together "compensation") to AXA Distributors. Premium-based
compensation is paid based on AXA Equitable policies sold through AXA
Distributor's Selling broker-dealers. Asset-based compensation is paid based on
the unloaned account value of policies sold through certain of AXA
Distributor's Selling broker-dealers. Premium-based compensation will generally
not exceed 135% of the premiums you pay up to one target premium in your
policy's first year; plus 5% of all other premiums you pay in your policy's
first year; plus 2.8% of all other premiums you pay in policy years two through
ten, and 2% thereafter. Asset-based compensation up to 0.15% in policy years
6-10 and up to 0.10% in policy years 11 and later may also be paid. AXA
Distributors, in turn, pays a portion of the compensation it receives to the
Selling broker-dealer making the sale. The compensation paid by AXA
Distributors varies among Selling broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the amount and type
of compensation paid to the Selling broker-dealer's financial professional for
the sale of the policy. Therefore, you should contact your financial
professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
These payments above also include compensation to cover operating expenses and
marketing services under the terms of AXA Equitable's distribution agreements
with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. AXA
Distributors may pay, out of its assets, certain Selling broker-dealers and
other financial intermediaries additional compensation in recognition of
services provided or expenses incurred. AXA Distributors may also pay certain
Selling broker-dealers or other financial intermediaries additional
compensation for enhanced marketing opportunities and other services (commonly
referred to as "marketing allowances"). Services for which such payments are
made may include, but are not limited to, the preferred placement of AXA
Equitable products on a company and/or product list; sales personnel training;
product training; business reporting; technological support; due diligence and
related costs; advertising, marketing and related services; conference; and/or
other support services, including some that may benefit the policy owner.
Payments may be based on ongoing sales, on the aggregate account value
attributable to policies sold through a Selling broker-dealer or such payments
may be a fixed amount. For certain selling broker-dealers, AXA Distributors
increases the marketing allowance as certain sales thresholds are met. AXA
Distributors may also make fixed payments to Selling broker-dealers, for
example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable policies exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable policies over policies and other products
issued by other companies. Not all Selling broker-dealers receive additional
payments, and the payments vary among Selling broker-dealers. The list below
includes the names of Selling broker-dealers that we are aware (as of
December 31, 2018) received additional payments. These additional payments
ranged from $536.67 to $6,370,912.47. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling broker-dealers to promote the sale of AXA
Equitable policies over policies and other products issued by other companies.
The list below includes any such Selling broker-dealer. For more information,
ask your financial professional.
1st Global Capital Corp.
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Securities, Inc.
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MORE INFORMATION ABOUT OTHER MATTERS
Cambridge Investment Research
Capital Investment Group
Centaurus Financial, Inc.
CETERA Financial Group
Citigroup Global Markets, Inc.
Citizens Investment Services
Commonwealth Financial Network
Community America Financial Solution
CUNA Brokerage Services
CUSO Financial Services, L.P.
DPL Financial Partners
Equity Services Inc.
Farmer's Financial Solution
Geneos Wealth Management
Gradient Securities, LLC
H. Beck, Inc.
H.D. Vest Investment Securities, Inc.
Huntleigh Securities Corp.
Independent Financial Group, LLC
Infinex Investments Inc.
Investment Professionals, Inc.
Janney Montgomery Scott LLC
Kestra Investment Services, LLC
Key Investment Services LLC
Ladenburg Thalmann Advisor Network, LLC
Lincoln Financial Advisors Corp.
Lincoln Financial Securities Corp.
Lincoln Investment Planning
Lion Street Financial
LPL Network
Lucia Securities, LLC
MML Investors Services, LLC
Morgan Stanley Smith Barney
Mutual of Omaha Investment Services, Inc.
Park Avenue Securities, LLC
PlanMember Securities Corp.
PNC Investments
Primerica Financial Services, Inc.
Prospera Financial Services
Questar Capital Corporation
Raymond James
RBC Capital Markets Corporation
Robert W Baird & Company
Santander Securities Corp.
SIGMA Financial Corporation
Signator Investors, Inc.
The Advisor Group (AIG)
U.S. Bank Center
UBS Financial Services, Inc.
Valmark Securities, Inc.
Voya Financial Advisors, Inc.
Wells Fargo
LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a policy owner's interest in Separate Account FP, nor would any of these
proceedings be likely to have a material adverse effect on Separate Account FP,
our ability to meet our obligations under the policies, or the distribution of
the policies.
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MORE INFORMATION ABOUT OTHER MATTERS
13. Financial statements of Separate Account FP and AXA Equitable
The financial statements of Separate Account FP, as well as the consolidated
financial statements of AXA Equitable, are in the Statement of Additional
Information ("SAI").
The financial statements of AXA Equitable have relevance for the policies only
to the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the policies. You may request an SAI by writing to our
Administrative Office or by calling 1-800-777-6510 (for U.S. residents) or
1-704-341-7000 (outside of the U.S.) and requesting to speak with a customer
service representative.
59
FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE
14. Personalized illustrations
ILLUSTRATIONS OF POLICY BENEFITS
PERSONALIZED ILLUSTRATIONS. Illustrations are intended to show how different
fees, charges and rates of return can affect the values available under a
policy. Illustrations can be based upon some of the characteristics of the
insured person under your policy as well as some other policy feature choices
you make such as the face amount, death benefit option, premium payment amounts
and assumed rates of return (within limits). This type of illustration is
called a PERSONALIZED ILLUSTRATION. NO ILLUSTRATION WILL EVER SHOW YOU THE
ACTUAL VALUES AVAILABLE UNDER YOUR POLICY AT ANY GIVEN POINT IN TIME. This is
because many factors affect these values including: (i) the insured person's
characteristics; (ii) policy features you choose; (iii) actual premium payments
you make; (iv) loans or withdrawals you make; and (v) actual rates of return
(including the actual fees and expenses) of the underlying portfolios in which
your cash value is invested. Each personalized illustration is accompanied by
an explanation of the assumptions on which that illustration is based. Because,
as discussed below, these assumptions may differ considerably, you should
carefully review all of the disclosure that accompanies each illustration.
DIFFERENT KINDS OF ILLUSTRATIONS. Personalized illustrations can reflect the
investment management fees and expenses incurred in 2018 (or expected to be
incurred in 2019, if such amount is expected to be higher) of the available
underlying portfolios in different ways. An ARITHMETIC ILLUSTRATION uses the
straight average of all of the available underlying portfolios' investment
management fees and expenses. A WEIGHTED ILLUSTRATION computes the average of
investment management fees and expenses based upon the aggregate assets in the
Portfolios at the end of 2018. You may request a weighted illustration that
computes the average of investment management fees and expenses of all
portfolios. If you request, a weighted illustration can also illustrate an
assumed percentage allocation of policy account values among the available
underlying portfolios. A FUND SPECIFIC ILLUSTRATION uses only the investment
management fees and expenses of a specific underlying portfolio. When reviewing
a weighted or fund specific illustration you should keep in mind that the
values shown may be higher than the values shown in other illustrations because
the fees and expenses that are assumed may be lower than those assumed in other
illustrations. You may also request a personalized illustration of the
guaranteed interest option.
THE EFFECT OF THE EXPENSE LIMITATION ARRANGEMENTS. Personalized illustrations
reflect the expense limitation arrangements that are in effect with respect to
certain of the Portfolios. If these fees and expenses were not reduced to
reflect the expense limitation arrangements, the values in the personalized
illustrations would be lower.
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PERSONALIZED ILLUSTRATIONS
Requesting more information
The Statement of Additional Information ("SAI"), dated May 1, 2019, is
incorporated into this prospectus by reference and is available upon request,
free of charge, by calling our toll free number at 1-800-777-6510 (for U.S.
residents) or 1-704-341-7000 (outside of the U.S.) and requesting to speak with
a customer service representative. You may also request one by writing to our
operations center at P.O. Box 1047, Charlotte, NC 28201-1047. The SAI includes
additional information about the registrant. You can make inquiries about your
policy and request personalized illustrations by calling our toll free number
at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the U.S.),
or asking your financial professional.
You may visit the SEC's web site at www.sec.gov to view the SAI and other
information (including other parts of a registration statement) that relates to
the Separate Account and the policies. You can also review and copy information
about the Separate Account, including the SAI, at the SEC's Public Reference
Room in Washington, D.C. or by electronic request at publicinfo@sec.gov or by
writing the SEC's Public Reference Section, at 100 F Street, N.E., Washington,
D.C. 20549. You may have to pay a duplicating fee. To find out more about the
Public Reference Room, call the SEC at 1-202-551-8090.
SEC File Number: 811-04335
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
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#643317
Incentive Life Optimizer(R) II
An individual flexible premium variable life insurance policy issued by AXA
Equitable Life Insurance Company with variable investment options offered under
AXA Equitable's Separate Account FP.
PROSPECTUS DATED MAY 1, 2019
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING, OR TAKING ANY
OTHER ACTION UNDER A POLICY. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES
AND SUPPLEMENTS. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST, WHICH
CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
This prospectus describes the Incentive Life Optimizer(R) II policy, but is not
itself a policy. This prospectus is a disclosure document and describes all of
the policy's material features, benefits, rights and obligations, as well as
other information. The description of the policy's material provisions in this
prospectus is current as of the date of this prospectus. If certain material
provisions under the policy are changed after the date of this prospectus in
accordance with the policy, those changes will be described in a supplement to
this prospectus. You should carefully read this prospectus in conjunction with
any applicable supplements. Certain optional features and benefits described in
the prospectus may not be available at the time you purchase the policy. We
reserve the right to restrict availability of any optional feature or benefit.
In addition, not all optional features and benefits may be available in
combination with other optional features and benefits. To make this prospectus
easier to read, we sometimes use different words than the policy. AXA Equitable
or your financial professional can provide any further explanation about your
policy.
This policy is no longer sold. This prospectus is for current policy owners
only. You should note that your policy features and charges, and your
investment options, may vary depending on the state and/or the date on which
you purchased your policy. For more information about the particular options,
features and charges applicable to you, please contact your financial
professional and/or refer to your policy.
For information about income, estate and gift taxes in connection with life
insurance policies as well as possible estate and gift tax consequences, please
see the Tax information section later in this prospectus, including the
information under "Estate, gift, and generation-skipping taxes".
WHAT IS INCENTIVE LIFE OPTIMIZER(R) II?
Incentive Life Optimizer(R) II provides life insurance coverage, plus the
opportunity for you to earn a return in our guaranteed interest option, the
Market Stabilizer Option(R) and/or one or more of the following variable
investment options:
VARIABLE INVESTMENT OPTIONS
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT GAMCO Mergers & Acquisitions
. 1290 VT GAMCO Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. American Funds Insurance Series(R) Global Small Capitalization Fund
. American Funds Insurance Series(R) New World Fund(R)
. Charter/SM/ Multi-Sector Bond
. Charter/SM/ Small Cap Growth
. Charter/SM/ Small Cap Value
. EQ/400 Managed Volatility/(2)/
. EQ/500 Managed Volatility/(2)/
. EQ/2000 Managed Volatility/(2)/
. EQ/AB Small Cap Growth/(2)/
. EQ/American Century Mid Cap Value
. EQ/Balanced Strategy/(1)(2)/
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/ClearBridge Large Cap Growth/(2)/
. EQ/Common Stock Index
. EQ/Conservative Growth Strategy/(1)(2)/
. EQ/Conservative Strategy/(1)(2)/
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM(R) Large Cap
. EQ/Franklin Rising Dividends
VARIABLE INVESTMENT OPTIONS
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Global Equity Managed Volatility/(2)/
. EQ/Goldman Sachs Mid Cap Value
. EQ/Growth Strategy/(1)(2)/
. EQ/Intermediate Government Bond
. EQ/International Core Managed Volatility/(2)/
. EQ/International Equity Index
. EQ/International Managed Volatility/(2)/
. EQ/International Value Managed Volatility/(2)/
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science and Technology
. EQ/Janus Enterprise/(2)/
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Core Managed Volatility/(2)/
. EQ/Large Cap Growth Index
. EQ/Large Cap Growth Managed Volatility/(2)/
. EQ/Large Cap Value Index
. EQ/Large Cap Value Managed Volatility/(2)/
. EQ/Lazard Emerging Markets Equity
. EQ/Loomis Sayles Growth/(2)/
. EQ/MFS International Growth
. EQ/MFS(R) International Value
. EQ/Mid Cap Index
. EQ/Mid Cap Value Managed Volatility/(2)/
. EQ/Moderate Growth Strategy/(1)(2)/
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/UBS Growth and Income
. Fidelity(R) VIP Growth & Income
. Fidelity(R) VIP Mid Cap
. Franklin Mutual Shares VIP
. Franklin Small Cap Value VIP
. Invesco V.I. Mid Cap Core Equity
. Invesco V.I. Small Cap Equity
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
. MFS(R) Investors Trust
. MFS(R) Massachusetts Investors Growth Stock
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
. PIMCO CommodityRealReturn(R) Strategy
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
. T. Rowe Price Equity Income II
. Templeton Developing Markets VIP
. Templeton Global Bond VIP
. Templeton Growth VIP
. VanEck VIP Global Hard Assets
(1)Also referred to as an "EQ Strategic Allocation investment option" in this
prospectus.
(2)This is the variable investment option's new name, effective on or about
May 20, 2019, subject to regulatory approval. Please see "Portfolios of the
Trusts" later in this prospectus for the variable investment option's former
name.
Amounts that you allocate under your policy to any of the variable investment
options are invested in a corresponding "Portfolio" that is part of one of the
trusts (the "Trusts"), which are mutual funds. Please see "About the Portfolios
of the Trusts" for more detailed information about the Portfolios and the
Trusts. Your investment results in a variable investment option will depend on
those of the related Portfolio. Any gains will generally be tax deferred and
the life insurance benefits we pay if the policy's insured person dies will
generally be income tax free. If you are the policy's owner and the insured
person, the death benefit will generally be includible in your estate for
purposes of federal estate tax.
THE SECURITIES AND EXCHANGE COMMISSION ("SEC") HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE POLICIES ARE NOT
INSURED BY THE FDIC OR ANY OTHER AGENCY. THEY ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF ANY BANK AND ARE NOT BANK GUARANTEED. THEY ARE SUBJECT TO
INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
Catalog No. 145327 (5/18)
#637014/AA & ADLL
THE MARKET STABILIZER OPTION(R). The Market Stabilizer Option(R) ("MSO") is an
investment option that is also available under this policy. The option provides
for participation in the performance of the S&P 500 Price Return index which
excludes dividends, (the "Index") up to the Growth Cap Rate that we set on the
Segment Start Date. On the Segment Maturity Date, we will apply the
Index-Linked Rate of Return to the Segment Account Value based on the
performance of the Index. If the performance of the Index has been positive for
the Segment Term and equal to or below the Growth Cap Rate, we will apply to
the Segment Account Value an Index-Linked Rate of Return equal to the full
Index performance. If the performance of the Index has been positive for the
Segment Term and above the Growth Cap Rate, we will apply an Index-Linked Rate
of Return equal to the Growth Cap Rate. If the Index has negative performance,
the Index-Linked Rate of Return will be 0% unless the Index performance goes
below -25% for the Segment Term. In that case only the negative performance in
excess of -25% will be applied to the Segment Account Value. Please see "About
the Market Stabilizer Option(R)" for more information and definitions of terms
associated with the MSO.
PLEASE NOTE THAT YOU WILL NOT BE CREDITED WITH ANY POSITIVE INDEX PERFORMANCE
WITH RESPECT TO AMOUNTS THAT ARE REMOVED FROM A SEGMENT PRIOR TO THE SEGMENT
MATURITY DATE. EVEN WHEN THE INDEX PERFORMANCE HAS BEEN POSITIVE, SUCH EARLY
REMOVALS WILL CAUSE YOU TO LOSE SOME PRINCIPAL. PLEASE SEE "EARLY DISTRIBUTION
ADJUSTMENT" LATER IN THIS PROSPECTUS.
OTHER CHOICES YOU HAVE. You have considerable flexibility to tailor the policy
to meet your needs. For example, subject to our rules, you can (1) choose when
and how much you contribute (as "premiums") to your policy, (2) pay certain
premium amounts to guarantee that your insurance coverage will continue for at
least a certain number of policy years, regardless of investment performance,
(3) borrow or withdraw amounts you have accumulated, (4) choose between two
life insurance death benefit options, (5) increase or decrease the amount of
insurance coverage, (6) elect to receive an insurance benefit if the insured
person becomes terminally ill, and (7) obtain certain optional benefits that we
offer by "riders" to your policy.
OTHER AXA EQUITABLE POLICIES. We offer a variety of fixed and variable life
insurance policies which offer policy features, including investment options,
that are different from those offered by this prospectus. Not every policy or
feature is offered through your financial professional. Replacing existing
insurance with Incentive Life Optimizer(R) II or another policy may not be to
your advantage. You can contact us to find out more about any other AXA
Equitable insurance policy.
ELECTRONIC DELIVERY OF SHAREHOLDER REPORTS (PURSUANT TO RULE 30E-3). Beginning
on January 1, 2021, as permitted by regulations adopted by the SEC, paper
copies of the shareholder reports for portfolio companies available under your
policy will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Company or from your financial intermediary.
Instead, the reports will be made available on a web-site, and you will be
notified by mail each time a report is posted and provided with a website link
to access the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. You may elect
to receive shareholder reports and other communications electronically from the
Company or your financial intermediary by calling 1-800-777-6510.
You may elect to receive all future reports in paper free of charge. You can
inform the Company or your financial intermediary that you wish to continue
receiving paper copies of your shareholder reports by calling 1-877-522-5035 or
by sending an email request to EquitableFunds@dfinsolutions.com. Your election
to receive reports in paper will apply to all portfolio companies available
under your policy.
The Market Stabilizer Option(R) is not sponsored, endorsed, sold or promoted by
Standard & Poor's ("S&P") or its third party licensors. Neither S&P nor its
third party licensors makes any representation or warranty, express or implied,
to the owners of the Market Stabilizer Option(R) or any member of the public
regarding the advisability of investing in securities generally or in the
Market Stabilizer Option(R) particularly or the ability of the S&P 500 Price
Return index (the "Index") to track general stock market performance. S&P's and
its third party licensor's only relationship to AXA Equitable is the licensing
of certain trademarks and trade names of S&P and the third party licensors and
of the Index which is determined, composed and calculated by S&P or its third
party licensors without regard to AXA Equitable or the Market Stabilizer
Option(R). S&P and its third party licensors have no obligation to take the
needs of AXA Equitable or the owners of the Market Stabilizer Option(R) into
consideration in determining, composing or calculating the Index. Neither S&P
nor its third party licensors is responsible for and has not participated in
the determination of the prices and amount of the Market Stabilizer Option(R)
or the timing of the issuance or sale of the Market Stabilizer Option(R) or in
the determination or calculation of the equation by which the Market Stabilizer
Option(R) is to be converted into cash. S&P has no obligation or liability in
connection with the administration, marketing or trading of the Market
Stabilizer Option(R).
Contents of this Prospectus
Definitions of Key Terms 5
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1. RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY 7
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Tables of policy charges 7
How we allocate charges among your investment options 10
Changes in charges 10
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2. RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS 11
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How you can pay for and contribute to your policy 11
The minimum amount of premiums you must pay 11
You can guarantee that your policy will not terminate before a certain date 12
You can elect a "paid up" death benefit guarantee 13
You can receive an accelerated death benefit under the Long-Term Care
Services/SM/ Rider 13
Investment options within your policy 13
About your life insurance benefit 15
Alternative higher death benefit in certain cases 15
You can increase or decrease your insurance coverage 16
Accessing your money 17
Risks of investing in a policy and the Market Stabilizer Option(R) 18
How the Incentive Life Optimizer(R) II variable life insurance policy is
available 19
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3. WHO IS AXA EQUITABLE? 20
--------------------------------------------------------------------------------
How to reach us 21
About our Separate Account FP 21
About Separate Account No. 67 22
Your voting privileges 22
About the Trusts 22
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4. ABOUT THE PORTFOLIOS OF THE TRUSTS 23
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Portfolios of the Trusts 24
|
"We," "our" "us" and the "Company" refer to AXA Equitable. "Financial
professional" means the registered representative of either AXA Advisors or an
unaffiliated broker dealer which has entered into a selling agreement with AXA
Distributors who is offering you this policy.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person or persons having the right or responsibility that
the prospectus is discussing at that point. This usually is the policy's owner.
If a policy has more than one owner, all owners must join in the exercise of
any rights an owner has under the policy, and the word "owner" therefore refers
to all owners.
When we use the word "state" we also mean any other local jurisdiction whose
laws or regulations affect a policy.
This prospectus does not offer Incentive Life Optimizer(R) II anywhere such
offers are not lawful. AXA Equitable does not authorize any information or
representation about the offering other than that contained or incorporated in
this prospectus, in any current supplements thereto, or in any related sales
materials authorized by AXA Equitable.
3
CONTENTS OF THIS PROSPECTUS
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5. ABOUT THE MARKET STABILIZER OPTION(R) (APPLICABLE ONLY IF ALLOCATING
AMOUNTS TO THE MSO) 33
--------------------------------------------------------------------------------
Definitions 33
Description of the Market Stabilizer Option(R) 34
--------------------------------------------------------------------------------
6. DETERMINING YOUR POLICY'S VALUE 43
--------------------------------------------------------------------------------
Your policy account value 43
--------------------------------------------------------------------------------
7. TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS 44
--------------------------------------------------------------------------------
Transfers you can make 44
How to make transfers 45
Our automatic transfer service 45
Our asset rebalancing service 45
--------------------------------------------------------------------------------
8. ACCESSING YOUR MONEY 46
--------------------------------------------------------------------------------
Borrowing from your policy 46
Loan extension (for guideline premium test policies only) 47
Making withdrawals from your policy 48
Surrendering your policy for its net cash surrender value 48
Your option to receive a terminal illness living benefit under the Living
Benefits Rider 49
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9. TAX INFORMATION 50
--------------------------------------------------------------------------------
Basic income tax treatment for you and your beneficiary 50
Tax treatment of distributions to you (loans, partial withdrawals, and full
surrender) 50
Tax treatment of Living Benefits Rider or Long-Term Care Services/SM/ Rider
under a policy with the applicable rider 51
Business and employer owned policies 52
Requirement that we diversify investments 52
Estate, gift, and generation-skipping taxes 53
Pension and profit-sharing plans 53
Split-dollar and other employee benefit programs 53
ERISA 53
3.8% Tax on Net Investment Income or "NII" 53
Our taxes 53
Tax withholding and information reporting 53
Possibility of future tax changes and other tax information 54
--------------------------------------------------------------------------------
10. MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS 55
--------------------------------------------------------------------------------
Guarantee premium test for the no-lapse guarantees 55
Paid up death benefit guarantee 55
Other benefits you can add by rider 56
Customer loyalty credit 61
Variations among Incentive Life Optimizer(R) II policies 62
Your options for receiving policy proceeds 62
Your right to cancel within a certain number of days 62
|
--------------------------------------------------------------------------------
11. MORE INFORMATION ABOUT CERTAIN POLICY CHARGES 63
--------------------------------------------------------------------------------
Deducting policy charges 63
Charges that the Trusts deduct 67
--------------------------------------------------------------------------------
12. MORE INFORMATION ABOUT PROCEDURES THAT APPLY TO YOUR POLICY 68
--------------------------------------------------------------------------------
Dates and prices at which policy events occur 68
Policy issuance 69
Ways to make premium and loan payments 69
Assigning your policy 69
You can change your policy's insured person 70
Requirements for surrender requests 70
Gender-neutral policies 70
Future policy exchanges 70
Broker transaction authority 70
--------------------------------------------------------------------------------
13. MORE INFORMATION ABOUT OTHER MATTERS 71
--------------------------------------------------------------------------------
About our general account 71
Transfers of your policy account value 71
Telephone and Internet requests 72
Cybersecurity 73
Suicide and certain misstatements 73
When we pay policy proceeds 73
Changes we can make 73
Reports we will send you 74
Distribution of the policies 74
Legal proceedings 76
--------------------------------------------------------------------------------
14. FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE 77
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
15. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 78
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
16. PERSONALIZED ILLUSTRATIONS 79
--------------------------------------------------------------------------------
Illustrations of policy benefits 79
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--------------------------------------------------------------------------------
APPENDICES
--------------------------------------------------------------------------------
I -- MSO Early Distribution Adjustment Examples I-1
II -- Calculating the alternate death benefit II-1
III -- Policy variations III-1
IV -- State policy availability and/or variations of certain
features and benefits IV-1
--------------------------------------------------------------------------------
REQUESTING MORE INFORMATION
Statement of Additional Information
Table of contents
--------------------------------------------------------------------------------
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4
CONTENTS THIS PROSPECTUS
Definitions of Key Terms
ALTERNATIVE DEATH BENEFIT -- the alternate higher death benefit is based upon
the life insurance qualification test that you choose. We will automatically
pay an alternative death benefit if it is higher than the basic death benefit
option you have selected.
AMOUNT AT RISK -- our amount at risk on any date is the difference between
(a) the death benefit that would be payable if the insured person died on that
date and (b) the then total account value under the policy.
BENEFICIARY -- the person or entity you designate to receive the death benefit
payable at the death of the Insured.
BUSINESS DAY -- is generally any day the New York Stock Exchange ("NYSE") is
open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of
an earlier close of regular trading). A business day does not include a day on
which we are not open due to emergency conditions determined by the Securities
and Exchange Commission. We may also close early due to such emergency
conditions. Premium payments will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
. If your premium payment, transfer or any other transaction request
containing all the required information reaches us on any of the following,
we will use the next business day:
-- on a non-business day;
-- after 4:00 p.m. Eastern Time on a business day; or
-- after an early close of regular trading on the NYSE on a business day.
CASH SURRENDER VALUE -- the cash surrender value is equal to the difference
between your policy account value and any surrender charges that are in effect
under your policy.
COST OF INSURANCE CHARGE -- the monthly cost of insurance charge is determined
by multiplying the cost of insurance rate that is then applicable to your
policy by the amount we have at risk under your policy divided by $1,000.
COST OF INSURANCE RATES -- the cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured, the face amount and the policy year.
CUSTOMER LOYALTY CREDIT -- a customer loyalty credit is provided for policies
that have been in force for more than 8 years. This is added to your policy
account value each month.
ENHANCED NO LAPSE GUARANTEE -- the enhanced no lapse guarantee is an optional
rider that may be elected at issue at no additional charge that provides a
longer guarantee period than described below with a possible higher and/or
longer premium requirement, provided that you allocate all of your policy
account value to any of the EQ Strategic Allocation investment options.
FACE AMOUNT -- represents the amount of insurance coverage you want on the life
of the insured person.
GUARANTEED INTEREST ACCOUNT -- is a fixed account that is part of our General
Account.
GUARANTEE PREMIUM -- you can generally guarantee that your policy will not
terminate for a number of years by paying at least certain specified amounts of
premiums. We call these amounts "guarantee premiums" and they will be set forth
in your policy.
INSURED -- the person on whose life we base this policy.
LONG-TERM CARE SERVICES/SM/ RIDER -- subject to our eligibility requirements,
this is an optional rider that may be elected at issue that provides for the
acceleration of the policy death benefit as a payment of a portion of the
policy's death benefit each month as a result of the insured person being a
chronically ill individual who is receiving qualified long-term care services.
MARKET STABILIZER OPTION(R) ("MSO") -- the MSO is an optional rider that
provides a rate of return tied to the performance of the S&P 500 Price Return
Index.
NET CASH SURRENDER VALUE -- The net cash surrender value equals your policy
account value, minus any outstanding loan and unpaid loan interest, minus any
amount of your policy account value that is "restricted" as a result of
previously distributed terminal illness living benefits, and further reduced
for any monthly benefit payments under the Long-Term Care Services/SM/ Rider,
and minus any surrender charge that then remains applicable. If you have any
policy account value in the MSO, the Segment Distribution Value and not the
Segment Account Value will be used to calculate your policy account value for
the purpose of determining your net cash surrender value.
NET POLICY ACCOUNT VALUE -- your "net policy account value" is the total of
(i) your amounts in our variable investment options, (ii) your Segment Account
Value(s), (iii) your amounts in our guaranteed interest option, (iv) plus any
interest credited on loaned amounts, minus any interest accrued on outstanding
loans and minus any "restricted" amounts that we hold in the guaranteed
interest option as a result of any payment received under a Living Benefits
Rider.
NO-LAPSE GUARANTEE -- provides a guarantee against policy termination for a
specific period of time.
OWNER -- the owner of the policy. "You" or "your" refers to the owner.
PAID UP DEATH BENEFIT GUARANTEE -- the "paid up" death benefit provides an
opportunity to lock in all or a portion of your policy's death benefit without
making additional premium payments.
POLICY -- the policy with any attached application(s), any riders, and any
endorsements.
POLICY ACCOUNT VALUE -- your policy account value is the total of (i) your
amounts in our variable investment options, (ii) your Segment
5
DEFINITIONS OF KEY TERMS
Account Value(s), (iii) your amounts in our guaranteed interest option (other
than in (iv)), and (iv) any amounts that we are holding to secure policy loans
that you have taken (including any interest on those amounts which has not yet
been allocated to the investment options).
PREMIUM PAYMENTS -- We call the amounts you contribute to your policy
"premiums" or "premium payments."
REGISTER DATE -- Your policy's "register date" will be shown in your policy and
is the date from which we measure the months, years and anniversaries of your
policy. Your register date is determined as described in "Policy issuance"
under "More information about procedures that apply to your policy" later in
this prospectus.
SEGMENT MATURITY GIO LIMITATION -- A specified percentage limitation on the
amount of your Segment Maturity Value that may be allocated to the guaranteed
interest option. AXA Equitable reserves the right to implement a specified
percentage limitation on the amount of your Segment Maturity Value that may be
allocated to the guaranteed interest option. The specified percentage
limitation can be changed at anytime, but it will never be less than 5% of your
Segment Maturity Value. We will transfer any portion of your Segment Maturity
Value that is allocated to the guaranteed interest option in excess of the
Segment Maturity GIO Limitation to the EQ/Money Market variable investment
option unless we receive your instructions prior to the Segment Maturity Date
that the Segment Maturity Value should be allocated to the MSO Holding Account
or to any other available variable investment option. Please see "Appendix III:
Policy variations" later in this prospectus for more information.
SEGMENT MATURITY DATE -- The date on which a Segment Term is completed and the
Index-Linked Return for that Segment is applied to a Segment Account Value.
SEGMENT MATURITY VALUE -- This is the Segment Account Value adjusted by the
Index-Linked Return for that Segment.
SEGMENT START DATE -- The Segment Start Date is the day on which a Segment is
created.
SEGMENT TERM -- The duration of a Segment. The Segment Term for each Segment
begins on its Segment Start Date and ends on its Segment Maturity Date one year
later. We are currently only offering Segment Terms of approximately one year.
We may offer different durations in the future.
6
DEFINITIONS OF KEY TERMS
1. Risk/benefit summary: Charges and expenses you will pay
TABLES OF POLICY CHARGES
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the policy.
The first table shows the charges that we deduct under the terms of your policy
when you buy and each time you contribute to your policy, surrender the policy,
reduce the face amount or transfer policy account value among investment
options. ALL CHARGES ARE SHOWN ON A GUARANTEED MAXIMUM BASIS. THE CURRENT
CHARGES MAY BE LOWER THAN THE GUARANTEED MAXIMUM FOR CERTAIN CHARGES./(1)/
-------------------------------------------------------------------------------------------------------------------------
TRANSACTION FEES
-------------------------------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
-------------------------------------------------------------------------------------------------------------------------
PREMIUM CHARGE From each premium 6% of each premium/(2)/
SURRENDER (TURNING IN) OF YOUR POLICY DURING ITS Upon surrender Initial surrender charge per $1,000
FIRST 10 YEARS OR THE FIRST 10 YEARS AFTER YOU of initial base policy face amount or
HAVE REQUESTED AN INCREASE IN YOUR POLICY'S per $1,000 of requested base policy
FACE AMOUNT/(3)(5)/ face amount increase:/(4)/
Highest: $45.91
Lowest: $8.71
Representative: $16.62/(6)/
REQUEST A DECREASE IN YOUR POLICY'S FACE Effective date of the decrease A pro rata portion of the charge that
AMOUNT/(3)/ would apply to a full surrender at
the time of the decrease.
TRANSFERS AMONG INVESTMENT OPTIONS Upon transfer $25 per transfer./(7)/
SPECIAL SERVICES CHARGES At the time of the transaction Current and Maximum Charge: $90
. Wire transfer charge/(8)/ At the time of the transaction Current and Maximum Charge: $35
. Express mail charge/(8)/ At the time of the transaction Current Charge: $0
. Policy illustration charge/(9)/ At the time of the transaction Maximum Charge: $25
. Duplicate policy charge/(9)/ At the time of the transaction Current and Maximum Charge: $35
. Policy history charge/(9)(10)/ At the time of the transaction Current and Maximum Charge: $50
. Charge for returned payments/(9)/ Current and Maximum Charge: $25
-------------------------------------------------------------------------------------------------------------------------
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This table shows the fees and expenses that you will pay periodically during
the time that you own the Policy, not including underlying Trust portfolio fees
and expenses.
-----------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO
OPERATING EXPENSES
-----------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
-----------------------------------------------------------------------------------------
ADMINISTRATIVE Monthly (1)Policy Year Amount deducted
CHARGE/(3)(11)/
1 $15/(12)/
2+ $10/(12)/
plus
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(2)Charge per
$1,000 of the
initial base
policy face
amount and any
requested base
policy face
amount increase
that exceeds the
highest previous
face amount:
Highest: $0.34
Lowest: $0.09
Representative:
$0.11/(6)/
--------------------------------------------------------------------
COST OF INSURANCE CHARGE/(3)(11)(13)/ Monthly Charge per $1,000
of the amount for
which we are at
risk:/(14)/
Highest: $83.34
Lowest: $0.02
Representative:
$0.09/(15)/
--------------------------------------------------------------------
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7
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
----------------------------------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
----------------------------------------------------------------------------------------------------------------
CHARGE WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
----------------------------------------------------------------------------------------------------------------
MORTALITY AND EXPENSE RISK CHARGE Monthly Annual % of your value in our variable
Policy Year investment options and MSO
----------- --------------------------------------
1-10 1.00%
11+ 0.50%
----------------------------------------------------------------------------------------------------------------
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LOAN INTEREST SPREAD/(16)/ On each policy anniversary (or on 1% of loan amount.
loan termination, if earlier)
|
---------------------------------------------------------------------------------------------------------------------------
OPTIONAL RIDER CHARGES// WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
---------------------------------------------------------------------------------------------------------------------------
CHILDREN'S TERM INSURANCE Monthly (while the rider is in Charge per $1,000 of rider benefit amount:
effect)
$0.50
---------------------------------------------------------------------------------------------------------------------------
DISABILITY DEDUCTION WAIVER/(3)/ Monthly (while the rider is in Percentage of all other monthly charges:
effect)
Highest: 132%
Lowest: 7%
Representative: 12%/(15)/
---------------------------------------------------------------------------------------------------------------------------
DISABILITY PREMIUM WAIVER/(3)/ Monthly (while the rider is in Charge for Disability Premium Waiver per $1,000 of
(Initial base policy face effect) benefit for which such rider is purchased:/(17)/
amount/(18)/)
Highest: $0.60
Lowest: $0.01
Representative: $0.06/(15)/
---------------------------------------------------------------------------------------------------------------------------
DISABILITY PREMIUM WAIVER/(3)/ Monthly (while the rider is in Charge for Disability Premium Waiver per $1,000 of
(Children's Term Insurance) effect) benefit for which such rider is purchased:/(17)/
Highest: $0.03
Lowest: $0.01
Representative: $0.01/(15)/
---------------------------------------------------------------------------------------------------------------------------
DISABILITY PREMIUM WAIVER/(3)/ Monthly (while the rider is in Charge for Disability Premium Waiver per $1,000 of
(Long-Term Care Services/SM /Rider) effect) benefit for which such rider is purchased:/(17)/
Highest: $0.02
Lowest: $0.0009
Representative: $0.003/(15)/
---------------------------------------------------------------------------------------------------------------------------
DISABILITY PREMIUM WAIVER/(3)/ Monthly (while the rider is in Charge for Disability Premium Waiver per $1,000 of
(Option To Purchase Additional effect) benefit for which such rider is purchased:/(17)/
Insurance)
Highest: $0.07
Lowest: $0.02
Representative: $0.03/(15)/
---------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE SERVICES/SM/ Monthly Charge per $1,000 of the amount for which we are at
RIDER/(3)(11)(24)/ risk:/(19)/
With the optional Nonforfeiture Benefit:
Highest: $2.94
Lowest: $0.25
Representative: $0.53/(20)/
Without the optional Nonforfeiture Benefit:
Highest: $2.67
Lowest: $0.22
Representative: $0.49/(20)/
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OPTION TO PURCHASE ADDITIONAL Monthly (while the rider is in Charge per $1,000 of rider benefit amount:
INSURANCE/(3)/ effect)
Highest: $0.17
Lowest: $0.04
Representative: $0.16/(20)/
---------------------------------------------------------------------------------------------------------------------------
CASH VALUE PLUS RIDER/(21)/ Monthly (while the rider is in Charge per $1,000 of the initial base policy face
effect) amount:
$0.04
---------------------------------------------------------------------------------------------------------------------------
ADDING LIVING BENEFITS RIDER At the time of the transaction $100 (if elected after policy issue)
---------------------------------------------------------------------------------------------------------------------------
EXERCISING LIVING BENEFITS RIDER At the time of the transaction $250
---------------------------------------------------------------------------------------------------------------------------
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+ There is no additional charge for the Charitable Legacy Rider or the
Enhanced No Lapse Guarantee Rider.
8
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
-----------------------------------------------------------------------------------------
PERIODIC CHARGES OTHER THAN UNDERLYING TRUST PORTFOLIO OPERATING EXPENSES
-----------------------------------------------------------------------------------------
MSO RIDER MAXIMUM AMOUNT THAT MAY BE
CHARGES++ WHEN CHARGE IS DEDUCTED DEDUCTED
-----------------------------------------------------------------------------------------
MARKET Please see "Definitions" under "About the Market Stabilizer Option(R)
STABILIZER " later in this prospectus for key words and phrases related to the
OPTION(R) (MSO) MSO, as well as the meaning of special terms that are relevant to the
MSO.
-----------------------------------------------------------------------------------------
LOAN INTEREST On each policy anniversary (or on loan 2% for New York and Oregon
SPREAD/(16)/ termination, if earlier) policies
FOR AMOUNTS OF 5% for all other policies
POLICY LOANS
ALLOCATED TO
AN MSO SEGMENT
-----------------------------------------------------------------------------------------
MSO EARLY On surrender or other distribution 75% of Segment Account
DISTRIBUTION (including loan) from an MSO Segment Value/(22)/
ADJUSTMENT prior to its Segment Maturity Date
-----------------------------------------------------------------------------------------
VARIABLE INDEX On Segment Start Date 0.75%
BENEFIT
CHARGE/(25)/
-----------------------------------------------------------------------------------------
VARIABLE INDEX At the beginning of each policy month 1.65%/(23)/
SEGMENT during the Segment Term
ACCOUNT
CHARGE/(25)/
-----------------------------------------------------------------------------------------
TOTAL 2.40%
-----------------------------------------------------------------------------------------
++ Please see "Charges" and "Charge Reserve Amount" under "About the Market Stabilizer
Option(R) " for more information on how charges are deducted.
|
(1)For more information about some of these charges, see "Deducting policy
charges" under "More information about certain policy charges" later in this
prospectus. The illustrations of Policy Benefits that your financial
professional will provide will show the impact of the actual current and
guaranteed maximum rates, if applicable, of the policy charges, based on
various assumptions (except for the loan interest spread, where we use
current rates in all cases).
(2)Currently, we reduce this charge to 4% after an amount equal to two"target
premiums" has been paid. The "target premium" is actuarially determined for
each policy, based on that policy's specific characteristics, and death
benefit option, as well as the policy's face amount, among other factors. A
similar charge applies to premiums attributed to requested face amount
increases that are above your highest previous face amount. If your policy
includes the Cash Value Plus Rider, a portion of the premium charge will be
refunded upon surrender within the first three policy years, subject to a
cumulative premium-based cap on the rider benefits (see "Cash Value Plus
Rider" in "More information about policy features and benefits" later in
this prospectus).
(3)This charge varies based on individual characteristics of the insured, and
for the Long-Term Care Services/SM/ Rider on the benefit percentage you
choose and may not be representative of the charge that you will pay. In
particular, the initial amount of the surrender charge depends on each
insured's specific characteristics. Your financial professional can provide
you with more information about these charges as they relate to the
insured's particular characteristics. See "Deducting policy charges" under
"More information about certain policy charges."
(4)If your policy includes the Cash Value Plus Rider, the surrender charges are
reduced, subject to a cumulative premium-based cap on the rider benefits
(see "Cash Value Plus Rider" in "More information about policy features and
benefits" later in this prospectus).
(5)The surrender charge attributable to each increase in your policy's face
amount is in addition to any remaining surrender charge attributable to the
policy's initial face amount.
(6)This representative amount is the rate we guarantee for a representative
insured male age 35 at issue or at the time of a requested face amount
increase, in the preferred elite non-tobacco user risk class.
(7)No charge, however, will ever apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any
transfer pursuant to our automatic transfer service or asset rebalancing
service as discussed later in this prospectus. Nor will this charge apply to
any transfers to or from any MSO Holding Account that we make available in
connection with any Market Stabilizer Option(R) available as an investment
option. Please see "About the Market Stabilizer Option(R)" later in this
prospectus for information about the MSO and the related "Holding Account."
(8)Unless you specify otherwise, this charge will be deducted from the amount
you request.
(9)The charge for this service must be paid using funds outside of your policy.
Please see "Deducting policy charges" under "More Information about certain
policy charges" for more information.
(10)The charge for this service may be less depending on the policy history you
request. Please see "Deducting policy charges" under "More Information
about certain policy charges" for more information.
(11)Not applicable after the insured person reaches age 121.
(12)Not applicable if the minimum face amount stated in your policy is $10,000.
Please see "Your policy's face amount" under "About your life insurance
benefit" in "Risk/ benefit summary: Policy features, benefits and risks"
later in this prospectus.
(13)Insured persons who present particular health, occupational or vocational
risks may be charged other additional charges as specified in their
policies.
(14)Our amount "at risk" is the difference between the amount of death benefit
and the policy account value as of the deduction date.
(15)This representative amount is the rate we guarantee in the first policy
year for a representative insured male age 35 at issue in the preferred
elite non-tobacco user risk class.
(16)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
rate is the greater of (a) 3% or (b) the "Monthly Average Corporate" yield
published by Moody's Corporate Bond Yield Averages for the month that ends
two months before the interest rate is set. The loan interest spread is the
excess of the interest rate we charge over the interest rate we credit,
which will not exceed 1%. For more information on the maximum rate see
"Borrowing from your policy -- Loan interest we charge" in "Accessing your
money" later in this prospectus. However, for MSO Segments, the guaranteed
maximum spread is higher as noted above. This spread is the maximum
difference between the annual interest rate we credit and the annual loan
interest rate we charge on the amount of any loan deducted from a Segment.
See "Loans" and "How we deduct monthly charges during a Segment Term" under
"About the Market Stabilizer Option(R)" later in this prospectus for more
information about how loan interest is deducted from your policy.
9
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
(17)Amount charged equals the total sum of Disability Premium Waiver rider
charges corresponding to the base policy, any Children's Term Insurance,
Option To Purchase Additional Insurance and/or any Long-Term Care
Services/SM/ Rider that you have added to your policy and to any base
policy face amount increases.
(18)The monthly charges corresponding to the base policy will be adjusted
proportionately to any face amount reduction made at your request or
resulting from a partial withdrawal under death benefit Option A.
(19)Our amount "at risk" for this rider depends on the death benefit option
selected under the policy. See "More information about policy features and
benefits -- Long-Term Care Services/SM/ Rider" later in this prospectus.
(20)This representative amount is the rate we guarantee in any policy year
while the rider is in effect for a representative insured male age 35 at
issue in the preferred elite non-tobacco user risk class.
(21)This rider is not available if you elect the Long-Term Care Services/SM/
Rider. Please see "Appendix III: Policy variations" later in this
prospectus for more information on the charge applicable under the prior
version of this rider. This rider was available beginning May 2, 2011.
(22)The actual amount of an Early Distribution Adjustment is determined by a
formula that depends on, among other things, how the Index has performed
since the Segment Start Date, as discussed in detail in "Early Distribution
Adjustment" under "About the Market Stabilizer Option(R)" later in this
prospectus. The maximum amount of the adjustment would occur if there is a
total distribution at a time when the Index has declined to zero.
(23)Currently we deduct this charge at an annual rate of 0.65%, rather than at
the maximum rate shown.
(24)This rider is not available if you elect the Cash Value Plus Rider.
(25)These charges represent annual rates.
You also bear your proportionate share of all fees and expenses paid by a
Portfolio that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses currently
charged by any of the Portfolios that you will pay periodically during the time
that you own the Policy. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and the related variable investment option. Actual fees
and expenses are likely to fluctuate from year to year. MORE DETAIL CONCERNING
EACH PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE TRUST PROSPECTUS FOR
THAT PORTFOLIO.
-----------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
-----------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses (expenses that are deducted from Portfolio assets Lowest Highest
including management fees, 12b-1 fees, service fees and/or other expenses)/(1)/ 0.58% 2.17%
-----------------------------------------------------------------------------------------------------------
|
(1)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses. Pursuant to a contract, AXA Equitable
Funds Management Group, LLC has agreed to make payments or waive its
management, administrative and other fees to limit the expenses of certain
affiliated Portfolios through April 30, 2020 ("Expense Limitation
Arrangement") (unless the Trust's Board of Trustees consents to an earlier
revision or termination of this agreement). The Expense Limitation
Arrangement may be terminated by AXA Equitable Funds Management Group, LLC
at any time after April 30, 2020. The range of expenses in the table above
does not include the effect of any Expense Limitation Arrangement. The range
of expense in the table below includes the effect of the Expense Limitation
Arrangements.
--------------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
--------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses after the effect of Expense Limitation Arrangements/(/*/)/ Lowest Highest
0.58% 2.02%
--------------------------------------------------------------------------------------------------------------------
|
(*)"Total Annual Portfolio Operating Expenses" may be based, in part, on
estimated amounts of such expenses.
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
In your application for a policy, you tell us from which investment options you
want us to take the policy's monthly deductions as they fall due. You can
change these instructions at any time. If we cannot deduct the charge as your
most current instructions direct, we will allocate the deduction among your
investment options proportionately to your value in each. If the Enhanced No
Lapse Guarantee Rider or the paid up death benefit guarantee is in effect, we
will allocate the deduction among the investment options available with these
guarantees, proportionately to your value in each.
Substantially different procedures apply, however, if you allocate any of your
policy account value to the MSO investment option. In that case, for example,
you will be required to maintain a certain amount of policy account value in
the policy's guaranteed interest option, from which we will make the policy's
monthly deductions. Please see "About the Market Stabilizer Option(R)" later in
this prospectus for more information about these procedures, including the
procedure we will follow if amounts in the guaranteed interest option are
insufficient to pay the deductions.
CHANGES IN CHARGES
We reserve the right in the future to (1) make a charge for certain taxes or
reserves set aside for taxes (see "Our taxes" under "Tax information" later in
this prospectus) that might be imposed on us; (2) make a charge for the
operating expenses of our variable investment options (including, without
limitation, SEC registration fees and related legal counsel fees and auditing
fees); or (3) change our other current policy charges (in no event will they
exceed the maximum charges guaranteed in your policy).
Any changes that we make in our current charges or charge rates will be on a
basis that is equitable to all policies belonging to a given class, and will be
determined based on reasonable assumptions as to expenses, mortality,
investment income, lapses and policy and contract claims associated with
morbidity. These assumptions include taxes, the cost of hedging, longevity,
volatility, other market conditions, surrenders, persistency, conversions,
disability, accident, illness, inability to perform activities of daily living,
and cognitive impairment, if applicable. Any changes in charges may apply to
then in force policies, as well as to new policies. You will be notified in
writing of any changes in charges under your policy.
10
RISK/BENEFIT SUMMARY: CHARGES AND EXPENSES YOU WILL PAY
2. Risk/benefit summary: Policy features, benefits and risks
Incentive Life Optimizer(R) II is a variable life insurance policy that
provides you with flexible premium payment plans and benefits to meet your
specific needs. The basic terms of the policy require you to make certain
payments in return for life insurance coverage. The payments you can make and
the coverage you can receive under this "base policy" are described below.
Riders to your base policy can increase the benefits you receive and affect the
amounts you pay in certain circumstances. Available riders are listed in "Other
benefits you can add by rider" under "More information about policy features
and benefits" later in this prospectus.
In addition, depending on when you purchased your policy, certain variations
may apply to your policy which differ from the information contained in this
section. Please see "Appendix III: Policy variations" later in this prospectus
for more information.
HOW YOU CAN PAY FOR AND CONTRIBUTE TO YOUR POLICY
PREMIUM PAYMENTS. We call the amounts you contribute to your policy "premiums"
or "premium payments." The amount we require as your first premium varies
depending on the specifics of your policy and the insured person. Each
subsequent premium payment must be at least $50, although we can increase this
minimum if we give you advance notice. Otherwise, with a few exceptions
mentioned below, you can make premium payments at any time and in any amount.
SECTION 1035 EXCHANGES OF POLICIES WITH OUTSTANDING LOANS. If we approve, you
may purchase an Incentive Life Optimizer(R) II policy through an assignment and
exchange of another life insurance policy with a cash surrender value pursuant
to a valid exchange under Section 1035 of the Internal Revenue Code (the
"Code"). If such other policy is subject to a policy loan, we may permit you to
carry over all or a portion of such loan to the Incentive Life Optimizer(R) II
policy, subject to our administrative rules then in effect. In this case, we
will treat any cash paid, plus any loaned amount carried over to the Incentive
Life Optimizer(R) II policy, as premium received in consideration of our
issuing the policy. If we allow you to carry over all or a portion of any such
outstanding loan, then we will hold amounts securing such loan in the same
manner as the collateral for any other policy loan, and your policy also will
be subject to all our other rules regarding loans (see "Borrowing from your
policy" later in this prospectus).
YOU CAN GENERALLY PAY PREMIUMS AT SUCH TIMES AND IN SUCH AMOUNTS AS YOU LIKE
BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S 121ST BIRTHDAY, SO LONG
AS YOU DON'T EXCEED CERTAIN LIMITS DETERMINED BY THE FEDERAL INCOME TAX LAWS
APPLICABLE TO LIFE INSURANCE.
YOUR CHOICE OF A LIFE INSURANCE QUALIFICATION TEST AND LIMITS ON PREMIUM
PAYMENTS. A policy must satisfy either of two testing methods to qualify as a
life insurance contract for tax purposes under Section 7702 of the Code. In
your application, you may choose either the guideline premium/cash value
corridor test ("guideline premium test") or the cash value accumulation test.
If you do not choose a life insurance qualification test, your policy will be
issued using the guideline premium test. Once your policy is issued, the
qualification method cannot be changed.
The qualification method you choose will depend upon your objective in
purchasing the policy. Generally, under the cash value accumulation test, you
have the flexibility to pay more premiums in the earlier years than under the
guideline premium test for the same face amount and still qualify as life
insurance for federal income tax purposes. Under the guideline premium test,
the federal tax law definition of "life insurance" limits your ability to pay
certain high levels of premiums (relative to your policy's insurance coverage)
but increases those limits over time. We will return any premium payments that
exceed these limits.
You should note, however, that the alternative death benefit under the cash
value accumulation test may be higher in earlier policy years than under the
guideline premium test, which will result in higher charges. Under either test,
if at any time your policy account value (as defined under "Determining your
policy's value," later in the prospectus) is high enough that the alternative
higher death benefit would apply, we reserve the right to limit the amount of
any premiums that you pay, unless the insured person provides us with evidence
of insurability satisfactory to us.
Regardless of which life insurance qualification test you choose, if your
premium payments exceed certain other amounts specified under the Code, your
policy will become a "modified endowment contract," which may subject you to
additional taxes and penalties on any distributions from your policy. See "Tax
information" later in this prospectus. We may return any premium payments that
would cause your policy to become a modified endowment contract if we have not
received a satisfactory modified endowment contract acknowledgment from you.
You can ask your financial professional to provide you with an illustration of
Policy Benefits that shows you the amount of premiums you can pay, based on
various assumptions, without exceeding applicable tax law limits. The tax law
limits can change as a result of certain changes you make to your policy. For
example, a reduction in the face amount of your policy may reduce the amount of
premiums that you can pay and may impact whether your policy is a modified
endowment contract.
You should discuss your choice of life insurance qualification test and
possible limitations on policy premiums with your financial professional and
tax advisor before purchasing the policy.
PLANNED PERIODIC PREMIUMS. Page 3 of your policy will specify a "planned
periodic premium." This is the amount that you request us to bill you. However,
payment of these or any other specific amounts of premiums is not mandatory.
You need to pay only the amount of premiums (if any) necessary to keep your
policy from lapsing and terminating as discussed below.
THE MINIMUM AMOUNT OF PREMIUMS YOU MUST PAY
POLICY "LAPSE" AND TERMINATION. Your policy will lapse (also referred to in
your policy as "default") if your "net policy account
11
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
value" is not enough to pay your policy's monthly charges when due unless:
. you have paid sufficient premiums to maintain one of our available
guarantees against termination, the guarantee is still in effect and any
outstanding loan and accrued loan interest does not exceed the policy
account value (see "You can guarantee that your policy will not terminate
before a certain date" below);
. you are receiving monthly benefit payments under the Long-Term Care
Services/SM/ Rider (see "Other benefits you can add by rider" under "More
information about policy features and benefits" later in this prospectus);
. you have elected the paid up death benefit guarantee and it remains in
effect and any outstanding policy loan and accrued loan interest does not
exceed the policy account value. (see "You can elect a "paid up" death
benefit guarantee" below); or
. your policy has an outstanding loan that would qualify for "loan extension."
("Policy account value" and "net policy account value" are explained under
"Determining your policy's value" later in this prospectus.)
We will mail a notice to you at your last known address if your policy lapses.
You will have a 61-day grace period to pay at least an amount prescribed in
your policy which would be enough to keep your policy in force for
approximately three months (without regard to investment performance). You may
not make any transfers or request any other policy changes during a grace
period. If we receive the requested amount before the end of the grace period,
it will be treated as a loan repayment to the extent it is less than or equal
to any outstanding policy loan and accrued loan interest. The remainder of the
payment, if any, will be treated as a premium payment. If the guaranteed
interest option limitation is in effect, we may limit you from allocating a
portion of your payment to the guaranteed interest option as described
elsewhere in this prospectus. Any such portion of the payment will be allocated
to the variable investment options in proportion to any payment amounts for the
variable investment options that you have specified with that
payment. Otherwise, any such portion of the payment will be allocated in
proportion to the premium allocation percentages for the variable investment
options then in effect. If you have not specified any payment amounts for the
variable investment options and if there are no premium allocation percentages
for any variable investment options then in effect, any such portion of the
payment will be refunded to you except for any minimum amount necessary to keep
the policy from terminating, which will be allocated to the guaranteed interest
option. If your policy account value is still insufficient to cover total
monthly deductions, we will send a written notice that a new 61-day grace
period has begun and request an additional payment. If we do not receive your
payment by the end of the grace period, your policy (and all riders to the
policy) will terminate without value and all coverage under your policy will
cease. We will mail an additional notice to you if your policy terminates.
Please see "Appendix III: Policy variations" later in this prospectus for more
information.
If the insured person dies during a grace period, we will pay the death
benefit, less any overdue charges (but not more than the guarantee premium
amount required to maintain one of the available guarantees against
termination), policy loans or liens and accrued loan or lien interest, to the
beneficiary you have named.
YOUR POLICY WILL TERMINATE IF YOU DON'T PAY ENOUGH PREMIUMS (I) TO PAY THE
CHARGES WE DEDUCT, OR (II) TO MAINTAIN ONE OF OUR NO LAPSE GUARANTEES THAT CAN
KEEP YOUR POLICY FROM TERMINATING. HOWEVER, WE WILL FIRST SEND YOU A NOTICE AND
GIVE YOU THE OPPORTUNITY TO PAY ANY SHORTFALL.
You may owe taxes if your policy terminates while you have a loan outstanding,
even though you receive no additional money from your policy at that time. See
"Tax information," later in this prospectus.
RESTORING A TERMINATED POLICY. To have your policy "restored" (put back in
force), you must apply within three years after the date of termination. You
must also (i) present evidence of insurability satisfactory to us and (ii) pay
at least the amount of premium that we require. The amount of payment will not
be more than an amount sufficient to cover total monthly deductions for 3
months, calculated from the effective date of restoration, and the premium
charge. We will determine the amount of this required payment as if no interest
or investment performance were credited to or charged against your policy
account. Your policy contains additional information about the minimum amount
of this premium and about the values and terms of the policy after it is
restored and the effective date of such restoration. You may only restore your
policy if it has terminated without value. You may not restore a policy that
was given up for its net cash surrender value. Any no-lapse guarantee also
terminates and cannot be restored after the policy terminates.
YOU CAN GUARANTEE THAT YOUR POLICY WILL NOT TERMINATE BEFORE A CERTAIN DATE
NO LAPSE GUARANTEE. You can generally guarantee that your policy will not
terminate for a number of years by paying at least certain specified amounts of
premiums. We call these amounts "guarantee premiums"and they will be set forth
on page 3 of your policy. We call this guarantee against termination our
"no-lapse guarantee." The length of your policy's guarantee period will range
from 5 to 20 years depending on the insured's age when we issue the policy.
Under the No Lapse Guarantee provision, the policy is guaranteed not to lapse
during a no lapse guarantee period of 20 years for issue ages 0-55, the number
of years to attained age 75 for issue ages 56-69, and 5 years for issue ages 70
and over. In some states, this guarantee may be referred to by a different name.
Your policy will not terminate, even if your net policy account value is not
sufficient to pay your monthly charges, as long as:
. You have satisfied the "guarantee premium test" (discussed in "guarantee
premium test for the no-lapse guarantee" under "More information about
policy benefits" later in this prospectus); and
. Any outstanding loan and accrued loan interest does not exceed the policy
account value.
There is no extra charge for this guarantee.
ENHANCED NO LAPSE GUARANTEE RIDER. An optional rider may be elected at issue at
no additional charge that provides a longer guarantee period than described
above with a possible higher and/or longer premium requirement, provided that
you allocate all of your policy account value to any of the EQ Strategic
Allocation investment options. The length of your policy's guarantee period
will range from
12
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
15 to 30 years, depending on the insured's age when we issue the policy. Under
the Enhanced No Lapse Guarantee Rider, the policy is guaranteed not to lapse
during the enhanced no lapse guarantee period of 30 years for issue ages 0-55,
or to age 85 for issue ages 56-70. For issue ages over 70, the Enhanced No
Lapse Guarantee Rider is not available. You can terminate this rider at any
time but it cannot be reinstated once terminated. For more information about
this rider, see "Optional benefits you can add by rider" under "More
information about policy features and benefits" later in this prospectus.
IF YOU PAY AT LEAST CERTAIN PRESCRIBED AMOUNTS OF PREMIUMS, AND ANY OUTSTANDING
POLICY LOAN AND ACCRUED LOAN INTEREST DO NOT EXCEED THE POLICY ACCOUNT VALUE,
YOUR POLICY WILL NOT LAPSE FOR A NUMBER OF YEARS, EVEN IF THE VALUE IN YOUR
POLICY BECOMES INSUFFICIENT TO PAY THE MONTHLY CHARGES.
The Market Stabilizer Option(R) is not available if you elect the Enhanced No
Lapse Guarantee Rider.
YOU CAN ELECT A "PAID UP" DEATH BENEFIT GUARANTEE
Provided certain requirements are met, and subject to our approval, you may
elect to take advantage of our "paid up" death benefit guarantee at any time
after the fourth year of your policy if the insured's attained age is 120 or
less. If you elect the paid up death benefit guarantee, we may reduce your base
policy's face amount. Thereafter, your policy will not lapse so long as the
paid up death benefit guarantee remains in effect. Also, if you elect the paid
up death benefit guarantee, you will be required to reallocate your existing
policy account value to a limited number of variable investment options
(currently the EQ Strategic Allocation investment options) that we make
available at our discretion. The guaranteed interest option will also be
available; however, we will limit the amount that may be allocated to the
guaranteed interest option at any time. If the policy guaranteed interest
option limitation is in effect at the time you elect the "paid up" death
benefit guarantee, it will no longer apply while the paid up death benefit
guarantee remains in effect. The limitation amounts applicable under the "paid
up" death benefit guarantee may permit you to allocate different amounts into
the guaranteed interest option. Our paid up death benefit guarantee is not
available if you received benefit payments under the Living Benefits Rider at
any time. Our paid up death benefit guarantee is not available if you received
monthly benefit payments under the Long-Term Care Services/SM/ Rider prior to
continuing coverage under any Nonforfeiture Benefit. Also, election of a paid
up death benefit guarantee will terminate any Long-Term Care Services/SM/ Rider
subject to any Nonforfeiture Benefit, if elected. Please also see Appendix III
later in this prospectus for policy and/or rider variations.
The guarantee will terminate if (i) at any time following the election, the sum
of any outstanding policy loan and accrued interest, exceeds your policy
account value, (ii) if we make a payment under the Living Benefits Rider or
Long-Term Care Services/SM/ Rider prior to continuing coverage under any
Nonforfeiture Benefit, or (iii) you request that we terminate the election. For
more information about the circumstances under which you can elect the paid up
death benefit, the possible reduction in face amount after this guarantee is
elected (including the possible imposition of surrender charges upon such
reduction), restrictions on allocating your policy account value and other
effects of this guarantee on your policy, see "Paid up death benefit guarantee"
under "More information about policy features and benefits" later in this
prospectus.
The Market Stabilizer Option(R) is not available while the paid up death
benefit guarantee is in effect.
YOU CAN RECEIVE AN ACCELERATED DEATH BENEFIT UNDER THE LONG-TERM CARE
SERVICES/SM/ RIDER
In states where approved and subject to our eligibility requirements, the
Long-Term Care Services/SM/ Rider may be added to your policy at issue that
provides an acceleration of the policy's death benefit in the form of monthly
payments if the insured becomes chronically ill and is receiving qualified
long-term care services in accordance with a plan of care. The long-term care
specified amount at issue must be at least $100,000. The monthly rate for this
rider varies based on the individual characteristics of the insured and the
benefit percentage you select and whether you select the rider with or without
the optional Nonforfeiture Benefit. You can terminate this rider after your
first policy year. For more information about this rider, see "Other benefits
you can add by rider" under "More information about policy features and
benefits" later in this prospectus. Please also see Appendix III later in this
prospectus for rider variations.
YOU CAN RECEIVE A TERMINAL ILLNESS LIVING BENEFIT UNDER THE LIVING BENEFITS
RIDER. Subject to our insurance underwriting guidelines and availability in
your state, your policy will automatically include our Living Benefits Rider if
you apply for a face amount of at least $100,000 unless it is issued as a
result of an Option To Purchase Additional Insurance election or a conversion
from a term life policy or term rider. This feature enables you to receive a
portion (generally the lesser of 75% or $500,000) of the policy's death benefit
(excluding death benefits payable under certain other policy riders), if the
insured person has a terminal illness (as defined in the rider). The maximum
aggregate amount of payments that will be paid under this Living Benefits Rider
for all policies issued by AXA Equitable or an affiliate company on the life of
the same insured person is $500,000. We make no additional charge for the
rider, but we will deduct a one-time administrative charge of up to $250 from
any living benefit we pay.
If you tell us that you do not wish to have the Living Benefits Rider added at
issue, but you later ask to add it, there will be a $100 administrative charge.
Also, we will need to evaluate the insurance risk at that time, and we may
decline to issue the rider.
For more information about that rider, see "Your option to receive a terminal
illness living benefit under the Living Benefits Rider" under
"Accessing your money" later in this prospectus.
INVESTMENT OPTIONS WITHIN YOUR POLICY
Except as set forth in the next paragraph, we will initially put all unloaned
amounts which you have allocated to variable investment options into such
options on the later of the business day that we receive the full minimum
initial premium at our Administrative Office or the register date of your
policy (the "Investment Start Date"). Before this date, your initial premium
will be held in a non-interest bearing account. See "Policy issuance" in "More
information about procedures that apply to your policy" later in this
prospectus.
In those states that require us to return your premium without adjustment for
investment performance within a certain number of days (see "Your right to
cancel within a certain number of days," later in this prospectus), we will
initially put all amounts which you have allocated to the variable investment
options into our EQ/Money
13
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
Market investment option as of the later of the Investment Start Date and the
issue date for 20 calendar days (the "Money Market Lock-in Period"). On the
first business day following the Money Market Lock-in Period, we will
reallocate that investment in accordance with your premium allocation
instructions then in effect. For policies issued in these states, the
"Allocation Date" is the first business day following the Money Market Lock-in
Period. For all other policies, the Allocation Date is the Investment Start
Date, and there is no automatic initial allocation to the EQ/Money Market
investment option. Please also see "Your right to cancel within a certain
number of days" under "About the Market Stabilizer Option(R)" later in this
prospectus for the procedures that apply if the MSO is elected.
You give such allocation instructions in your application to purchase a policy.
You can change the premium allocation percentages at any time, but this will
not affect any prior allocations. The allocation percentages that you specify
must always be in whole numbers and total exactly 100%.
However, if the policy guaranteed interest option limitation is in effect, we
will limit you from allocating more than a specified percentage of any premium
payment to the guaranteed interest option. Any portion of the premium payment
in excess of the limitation amount will be allocated to the variable investment
options in proportion to any premium payment amounts for the variable
investment options that you have specified with that premium payment.
Otherwise, the excess will be allocated in proportion to the premium allocation
percentages for the variable investment options then in effect. If you have not
specified any premium payment amounts for the variable investment options and
if there are no premium allocation percentages for any variable investment
options then in effect, any portion of the premium payment in excess of the
limitation amount will be refunded to you (except for any minimum amount
necessary to keep the policy from terminating, which will be allocated to the
guaranteed interest option). The specified percentage limitation on premium
payments allocated to the guaranteed interest option can be changed at any
time, but it will never be less than 5%. Please see "Appendix III: Policy
variations" later in this prospectus for more information.
The policy is between you and AXA Equitable. The policy is not an investment
advisory account, and AXA Equitable is not providing any investment advice or
managing the allocations under your policy. In the absence of a specific
written arrangement to the contrary, you, as the owner of the policy, have the
sole authority to make investment allocations and other decisions under the
policy. Your AXA Advisors' financial professional is acting as a broker-dealer
registered representative, and is not authorized to act as an investment
advisor or to manage the allocations under your policy. If your financial
professional is a registered representative with a broker-dealer other than AXA
Advisors, you should speak with him/her regarding any different arrangements
that may apply.
YOU CAN CHOOSE AMONG VARIABLE INVESTMENT OPTIONS.
VARIABLE INVESTMENT OPTIONS. The available variable investment options are
listed on the front cover of this prospectus. (Your policy and other
supplemental materials may refer to these as "Investment Funds.") The
investment results you will achieve in any one of these options will depend on
the investment performance of the corresponding Portfolio that shares the same
name as that option. That Portfolio follows investment practices, policies and
objectives that are appropriate to the variable investment option you have
chosen. You can lose your principal when investing in the variable investment
options. In periods of poor market performance, the net return, after charges
and expenses, may result in negative yields, including for the EQ/Money Market
variable investment option.
The advisers who make the investment decisions for each Portfolio are set forth
later in the prospectus under "About the Portfolios of the Trusts."
You will find other important information about each Portfolio in the separate
prospectuses for each Trust which accompany this prospectus, including a
comprehensive discussion of the risks of investing in each Portfolio. TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.). We may add or delete
variable investment options or Portfolios at any time.
If you elect at issue the Enhanced No Lapse Guarantee Rider or subsequently
exercise the paid up death benefit guarantee, your choice of variable
investment options will be limited to the EQ Strategic Allocation investment
options, or those investment options we are then making available under the
rider. Please see "Other benefits you can add by rider" under "More information
about policy features and benefits" later in this prospectus.
GUARANTEED INTEREST OPTION. You can also allocate some or all of your policy's
value to our guaranteed interest option. We, in turn, invest such amounts as
part of our general assets. Periodically, we declare a fixed rate of interest
(2% minimum) on amounts that you allocate to our guaranteed interest option. We
credit and compound the interest daily at an effective annual rate that equals
the declared rate. The rates we are declaring on existing policies at any time
may differ from the rates we are then declaring for newly issued policies. (The
guaranteed interest option is part of what your policy and other supplemental
material may refer to as the "Guaranteed Interest Account.")
Upon advance notification, AXA Equitable has the right to implement the policy
guaranteed interest option limitation. If the policy guaranteed interest option
limitation is in effect, AXA Equitable has the right to limit you from
allocating more than a specified percentage of your premium to the guaranteed
interest option. We may also reject any transfer you request from the variable
investment options to the unloaned portion of the guaranteed interest option if
the transfer would result in the unloaned portion of the guaranteed interest
option exceeding a specified percentage of the total unloaned policy account
value. Finally, we may limit you from allocating more than a specified
percentage of any additional loan repayment to the guaranteed interest option
after you have repaid any loaned amounts that were taken from the guaranteed
interest option. The specified percentage limitation on allocations of premium
payments, additional loan repayments, and requested transfers to the guaranteed
interest option can be changed at any time, but it will never be less than 5%.
If you elect the paid up death benefit guarantee, we will restrict the amount
of the policy account value that can be transferred or allocated to the
guaranteed interest option. The policy guaranteed interest option limitation
will not apply while the paid up death benefit guarantee remains in effect. The
limitation amounts applicable under the paid up death benefit guarantee may
permit you to allocate different amounts into the guaranteed interest option.
If you elect the Enhanced No Lapse Guarantee Rider at issue, and while it
remains in
14
RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
effect, you are required to allocate all of your policy account value to any of
the EQ Strategic Allocation investment options. Therefore, you may not allocate
any amounts to the guaranteed interest option whether or not the guaranteed
interest option limitation is in effect at that time. For more information on
these restrictions, see "Paid up death benefit guarantee" and "Enhanced No
Lapse Guarantee Rider" under "More information about policy features and
benefits" and "Appendix III: Policy variations" later in this prospectus.
WE WILL PAY AT LEAST 2% ANNUAL INTEREST ON OUR GUARANTEED INTEREST OPTION.
MARKET STABILIZER OPTION(R). The MSO is a rider that provides you with an
investment option linked to the performance of the S&P 500 Price Return index,
which excludes dividends, up to a Growth Cap Rate. While the Growth Cap Rate is
set at the Company's sole discretion, the Growth Cap Rate will not change
during a Segment Term and the Growth Cap Rate will always be at least 6%.
Additionally, the MSO provides a specified level of protection against declines
in the performance of the S&P 500 Price Return index of up to negative 25%.
Please see "About the Market Stabilizer Option(R)" later in this prospectus for
a more detailed explanation about the provisions and terms used for the MSO.
PLEASE NOTE THAT YOU WILL NOT BE CREDITED WITH ANY POSITIVE INDEX PERFORMANCE
WITH RESPECT TO AMOUNTS THAT ARE REMOVED FROM A SEGMENT PRIOR TO THE SEGMENT
MATURITY DATE. EVEN WHEN THE INDEX PERFORMANCE HAS BEEN POSITIVE, SUCH EARLY
REMOVALS WILL CAUSE YOU TO LOSE SOME PRINCIPAL. PLEASE SEE "EARLY DISTRIBUTION
ADJUSTMENT" LATER IN THIS PROSPECTUS.
ABOUT YOUR LIFE INSURANCE BENEFIT
YOUR POLICY'S FACE AMOUNT. In your application to buy an Incentive Life
Optimizer(R) II policy, you tell us how much insurance coverage you
want on the life of the insured person. We call this the "face amount" of the
base policy. Generally, $100,000 is the minimum amount of coverage you can
request. If you have elected the Charitable Legacy Rider, the minimum face
amount is $1 million. If you have elected the Cash Value Plus Rider, the
minimum face amount is $250,000 per life when one or two policies are purchased
on the lives of members of an insured group and $100,000 per life when policies
are purchased on the lives of three or more members. Please see "Appendix III:
Policy variations" later in this prospectus for more information on the prior
version of this rider. If you are exercising the Option To Purchase Additional
Insurance under another policy, or a conversion from certain term life policies
or term riders, the minimum face amount is $25,000. For: 1) policies that
exceed our Disability Deduction Waiver or Disability Premium Waiver maximum
coverage limit 2) face amount increases issued on a less favorable underwriting
basis than the base policy 3) policy owners of certain discontinued AXA
Equitable variable life products where a requested increase in coverage
involves the issuance of an additional variable life policy or 4) face amount
increases on a 1980 CSO product issued on a less favorable underwriting basis
than the base policy, the minimum face amount is $10,000.
IF THE INSURED PERSON DIES, WE PAY A LIFE INSURANCE BENEFIT TO THE
"BENEFICIARY" YOU HAVE NAMED. THE AMOUNT WE PAY DEPENDS ON WHETHER YOU HAVE
CHOSEN DEATH BENEFIT OPTION A OR DEATH BENEFIT OPTION B. (SEE "YOUR OPTIONS FOR
RECEIVING POLICY PROCEEDS" UNDER "MORE INFORMATION ABOUT POLICY FEATURES AND
BENEFITS" LATER IN THIS PROSPECTUS.)
YOUR POLICY'S "DEATH BENEFIT" OPTIONS. In your policy application, you also
choose whether the basic amount (or "benefit") we will pay if the insured
person dies is:
. Option A -- THE POLICY'S FACE AMOUNT on the date of the insured person's
death. The amount of this death benefit doesn't change over time, unless
you take any action that changes the policy face amount;
-or-
. Option B -- THE FACE AMOUNT PLUS THE "POLICY ACCOUNT VALUE" on the date of
death. Under this option, the amount of the death benefit generally changes
from day to day, because many factors (including investment performance,
charges, premium payments and withdrawals) affect your policy account value.
Your "policy account value" is the total amount that at any time is earning
interest for you or being credited with investment gains and losses under your
policy. For any amounts invested in an MSO Segment, your policy account value
will reflect the Segment Account Value. (Policy account value is discussed in
more detail under "Determining your policy's value" later in this prospectus.)
Under Option B, your policy's death benefit will tend to be higher than under
Option A, assuming the same policy face amount and policy account value. As a
result, the monthly insurance charge we deduct will also be higher to
compensate us for our additional risk. If you have elected the paid up death
benefit guarantee or your policy has been placed on loan extension, the death
benefit option will be Option A and must remain Option A thereafter.
ALTERNATIVE HIGHER DEATH BENEFIT IN CERTAIN CASES
Your policy is designed to always provide a minimum level of insurance
protection relative to your policy account value, in part to meet the Code's
definition of "life insurance."
We will automatically pay an alternative death benefit if it is HIGHER than the
basic Option A or Option B death benefit you have selected. The alternate
higher death benefit is based upon the life insurance qualification test that
you choose. For the guideline premium test, this alternative death benefit is
computed by multiplying your policy account value on the insured person's date
of death by a percentage specified in your policy. Representative percentages
are as follows:
IF THE ACCOUNT VALUE IN YOUR POLICY IS HIGH ENOUGH, RELATIVE TO THE FACE
AMOUNT, THE LIFE INSURANCE BENEFIT WILL AUTOMATICALLY BE GREATER THAN THE
OPTION A OR OPTION B DEATH BENEFIT YOU HAVE SELECTED.
----------------------------------------------
AGE:* 40 AND UNDER 45 50 55 60 65
----------------------------------------------
%: 250% 215% 185% 150% 130% 120%
----------------------------------------------
AGE: 70 75-90 91 92 93 94- OVER
----------------------------------------------
%: 115% 105% 104% 103% 102% 101%
----------------------------------------------
|
* For the then-current policy year.
For example, if the guideline premium test is selected, if the insured is age
65 at the time of death and has a policy with the face amount of $100,000, an
account value of $85,000, and a death benefit percentage of 120%, then the
death benefit under Option A is the alternative death benefit of $102,000 and
the death benefit under Option B is the death benefit of $185,000. For more
details regarding
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
how we calculate that death benefit under Option A and Option B, please see
"Appendix II: Calculating the alternate death benefit" later in this prospectus.
For the cash value accumulation test, the alternate death benefit is the
greater of the minimum death benefit as determined under the Code under this
test or 101% of the policy account value. The death benefit must be large
enough to ensure that the policy's cash surrender value (as computed under
section 7702 of the Code) is never larger than the net single premium needed to
fund future policy benefits. The net single premium varies based upon the
insured's age, sex and risk class and is calculated using an interest rate of
4% and mortality charges based upon the 2001 Commissioner's Standard Ordinary
Mortality Tables.
For example, if the cash value accumulation test is selected, if the insured is
age 65 at the time of death and has a policy with the face amount of $100,000,
an account value of $85,000, and a death benefit percentage of 185.7%, then the
death benefit under Option A is the alternative death benefit of $157,845 and
the death benefit under Option B is the death benefit of $185,000. For more
details regarding how we calculate that death benefit under Option A and Option
B, please see "Appendix II: Calculating the alternate death benefit" later in
this prospectus.
These higher alternative death benefits expose us to greater insurance risk
than the regular Option A and B death benefit. Because the cost of insurance
charges we make under your policy are based in part on the amount of our risk,
you will pay more cost of insurance charges for any periods during which a
higher alternative death benefit is the operative one.
The operative period for the higher alternative death benefit is generally
determined in connection with the requirements of the Code. The calculation of
the death benefit is built into the monthly calculation of the cost of
insurance charge, which is based on the net amount at risk. The need for the
higher alternative death benefit is assessed on each monthly anniversary date,
and on the death of the insured. Each policy owner receives an annual statement
showing various policy values.
The annual statement shows the death benefit amount as of the policy
anniversary, and that amount would reflect the alternative higher death benefit
amount, if applicable at that time. This annual statement also reflects the
monthly cost of insurance charge for the policy year, reflecting a higher net
amount at risk in those months when the higher alternative death benefit is in
effect.
OTHER ADJUSTMENTS TO DEATH BENEFIT. We will increase the death benefit proceeds
by the amount of any other benefits we owe upon the insured person's death
under any optional riders which are in effect.
We will reduce the death benefit proceeds by the amount of any outstanding
policy loan and unpaid loan interest, as well as any amount of monthly charges
under the policy that remain unpaid because the insured person died during a
grace period. We also reduce the death benefit if we have already paid part of
it under a Living Benefits Rider. We reduce it by the amount of the living
benefits payment plus interest. See "Your option to receive a terminal illness
living benefit under the Living Benefits Rider" later in this prospectus. Under
the Long-Term Care Services/SM/ Rider, any monthly benefit payments will be
treated as a lien against the death benefit and reduce your death benefit,
unless benefits are being paid under the optional Nonforfeiture Benefit. Please
see "Long-Term Care Services/SM/ Rider" later in this prospectus.
DEATH BENEFIT IF YOUR POLICY IS ON LOAN EXTENSION. Your policy offers an
additional feature against policy termination due to an outstanding loan,
called "loan extension." Availability of this feature is subject to certain
terms and conditions, including that you must have elected the guideline
premium test and have had your policy in force for at least 20 years. If your
policy is on loan extension, the death benefit payable under the policy will be
determined differently. For more information on loan extension, see "Borrowing
from your policy" under "Accessing your money."
YOU CAN REQUEST A CHANGE IN YOUR DEATH BENEFIT OPTION FROM OPTION B ANY TIME
AFTER THE FIFTH YEAR OF THE POLICY OR FROM OPTION A ANY TIME AFTER THE SECOND
YEAR OF THE POLICY AND BEFORE THE POLICY ANNIVERSARY NEAREST TO THE INSURED'S
121ST BIRTHDAY.
CHANGE OF DEATH BENEFIT OPTION. If you change your death benefit option, we
will adjust your policy's face amount. The adjustment will be in the amount (up
or down) necessary so that your death benefit amount immediately after the
change is equal to your death benefit amount immediately before the change.
The following rules apply if the alternative death benefit (referenced above)
is NOT higher than the base policy's death benefit at the time of the change in
the death benefit option. If you change from Option B to Option A, we
automatically increase your base policy's face amount by an amount equal to
your policy account value at the time of the change. If you change from Option
A to Option B, we will automatically reduce your base policy's face amount by
an amount equal to your policy account value at the time of the change. You can
request a change from Option A to Option B any time after the second policy
year or from Option B to Option A any time after the fifth policy year. Any
request to change an Option must occur before the policy anniversary nearest
the insured's 121st birthday.
If the alternative death benefit (referenced above) is higher than the base
policy's death benefit at the time of the change in death benefit option, we
will determine the new base policy face amount somewhat differently from the
general procedures described above. See "Alternative higher death benefit in
certain cases" earlier in this section.
We may refuse a change from Option A to Option B if the policy's face amount
would be reduced below $100,000. A change from Option A to Option B is not
permitted (a) beyond the policy year in which the insured person reaches the
attained age 120, (b) if the paid up death benefit guarantee is in effect, or
(c) your policy is on loan extension.
We will not deduct or establish any amount of surrender charge as a result of a
change in death benefit option. You may not request a change of the death
benefit option from Option A to Option B under the policy while the Long-Term
Care Services/SM/ Rider is in effect. You may request a change from Option B to
Option A. Please see Appendix III later in this prospectus for rider
variations. Please also refer to "Tax information" later in this prospectus, to
learn about certain possible income tax consequences that may result from a
change in death benefit option, including the effect of an automatic increase
or decrease in face amount.
YOU CAN INCREASE OR DECREASE YOUR INSURANCE COVERAGE
After the first policy year while this policy is in force, you may request an
increase in life insurance coverage under your policy. You may
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
request a decrease in your policy's face amount any time after the second year
of your policy but before the policy year in which the insured person reaches
age 121. The requested increase or decrease must be at least $10,000. Please
refer to "Tax information" for certain possible tax consequences and
limitations of changing the face amount of your policy.
We can refuse or limit any requested increase or decrease. We will not approve
any increase or decrease if (i) we are at that time being required to waive
charges or pay premiums under any optional disability waiver rider that is part
of the policy; (ii) the paid up death benefit guarantee is in effect; or
(iii) your policy is on loan extension. Also, we will not approve a face amount
increase if (i) the insured person has reached the maximum issue age for a face
amount increase as described in their policy (or age 71 if the Enhanced No
Lapse Guarantee Rider is in effect); or (ii) while the Cash Value Plus Rider is
in effect or, while the Long-Term Care Services/SM /Rider is in effect, unless
coverage has been continued under the optional Nonforfeiture Benefit. Further,
if the underwriting class for the insured person is changed after issue, the
maximum age at which the insured person may apply for a face amount increase
will be the maximum issue age for the underwriting class for the insured person
at the time the increase is requested (which may be different than it was
previously). We will not accept a request for a face amount decrease while you
are receiving monthly benefit payments under the Long-Term Care Services/SM/
Rider.
Certain policy changes, including increases and decreases in your insurance
coverage, may also affect the guarantee premiums under the policy.
The following additional conditions also apply:
FACE AMOUNT INCREASES. We treat an increase in face amount in many respects as
if it were the issuance of a new policy. For example, you must submit
satisfactory evidence that the insured person still meets our requirements for
coverage. Also, we establish additional amounts of surrender charge and
guarantee premiums under your policy for the face amount increase, reflecting
the additional amount of coverage.
In most states, you can cancel the face amount increase within 10 days after
you receive a new policy page showing the increase. If you cancel, we will
reverse any charges attributable to the increase and recalculate all values
under your policy to what they would have been had the increase not taken place.
The monthly cost of insurance charge we make for the amount of the increase
will be based on the underwriting classification of the insured person when the
original policy was issued, provided the insured qualifies for the same
underwriting classification. An additional 10 year surrender charge and an
additional administrative charge will apply to the face amount that exceeds the
highest previous face amount. If the insured qualifies for a less favorable
underwriting classification than the base policy, we may offer to issue a
separate policy based on the rating class for the increase. See "Risk/benefit
summary: Charges and expenses you will pay."
If you elect the MSO, the same conditions as described above for a face amount
increase will apply while any Segment is in effect. However, the Charge Reserve
Amount will be recalculated on the effective date of the requested face amount
increase so that the amount in the Unloaned GIO is sufficient to cover the
estimated monthly deductions for the policy during the longest remaining
Segment Term. If the Charge Reserve Amount requirement is not satisfied, the
requested Face Amount Increase will be declined. Please see "About the Market
Stabilizer Option(R)" later in this prospectus for a more detailed explanation
about when the Charge Reserve Amount may be insufficient and the provisions and
terms used for the MSO.
FACE AMOUNT DECREASES. You may not reduce the face amount below the minimum
stated in your policy. Nor will we permit a decrease that would cause your
policy to fail the Internal Revenue Code's definition of life insurance.
Guarantee premiums, as well as our monthly deductions for the cost of insurance
coverage, will generally decrease from the time you reduce the face amount.
If you reduce the face amount during the first 10 years of your policy, or
during the first 10 years after a face amount increase you have requested, we
will deduct all or part of the remaining surrender charge from your policy
account. Assuming you have not previously changed the face amount, the amount
of the surrender charge we will deduct will be determined by dividing the
amount of the decrease by the initial face amount and multiplying that fraction
by the total amount of surrender charge that still remains applicable to your
policy. We deduct the charge from the same investment options as if it were
part of a regular monthly deduction under your policy.
In some cases, we may have to make a distribution to you from your policy at
the time we decrease your policy's face amount or change your death benefit
option. This may be necessary in order to preserve your policy's status as life
insurance under the Internal Revenue Code. We may also be required to make such
distribution to you in the future on account of a prior decrease in face amount
or change in death benefit option. The distribution may be taxable.
ACCESSING YOUR MONEY
You can access the money in your policy in different ways. You may borrow up to
90% of the cash surrender value, less any outstanding loan and accrued loan
interest before the policy year in which the insured reaches age 75 (100%
thereafter). In your policy, the cash surrender value is equal to the
difference between your policy account value and any surrender charges that are
in effect under your policy. However, the amount you can borrow will be reduced
by any amount that we hold on a "restricted" basis following your receipt of a
terminal illness living benefits payment, as well as by any other loans and
accrued loan interest you have outstanding. The cash surrender value available
for loans is also reduced on a pro rata basis for the portion of the policy
death benefit amount accelerated to date but not by more than the accumulated
benefit lien amount. See "More information about policy features and benefits:
Other benefits you can add by rider: Long-Term Care Services/SM/ Rider" later
in this prospectus. We will charge interest on the amount of the loan. See
"Borrowing from your policy" later in this prospectus for more information.
You can also make a partial withdrawal of $500 or more of your net cash
surrender value (defined later in this prospectus under "Surrendering your
policy for its net cash surrender value") at any time after the first year of
your policy and before the policy anniversary nearest to the insured's 121st
birthday. Partial withdrawals are not permitted if you have elected the paid up
death benefit guarantee, your policy is on loan extension, or you are receiving
monthly benefit payments under the Long-Term Care Services/SM/ Rider before
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
coverage is continued under the optional Nonforfeiture Benefit. See "Making
withdrawals from your policy" later in this prospectus for more information.
If you elected the MSO, different procedures and restrictions apply to
withdrawals. See "Withdrawals" under "About the Market Stabilizer Option(R)"
later in this prospectus for additional information about withdrawals if you
elected the MSO.
Finally, you can surrender (turn in) your policy for its net cash surrender
value at any time. See "Surrendering your policy for its net cash surrender
value" later in this prospectus. See "Tax information" later in this
prospectus, for the tax treatment of the various ways in which you can access
your money.
RISKS OF INVESTING IN A POLICY AND THE MARKET STABILIZER OPTION(R)
The policy is unsuitable as a short-term savings vehicle. Some of the principal
risks of investing in a policy are as follows:
. If the investment options you choose perform poorly, you could lose some or
all of the premiums you pay.
. If the investment options you choose do not make enough money to pay for
the policy charges, except to the extent provided by any no lapse
guarantee, paid up death benefit guarantee or loan extension feature you
may have, you could have to pay more premiums to keep your policy from
terminating.
. If any policy loan and any accrued loan interest either equals or exceeds
the policy account value, your policy will terminate subject to the
policy's Grace Period provision and any Loan Extension Endorsement you may
have.
. We can increase, without your consent and subject to any necessary
regulatory approvals, any charge that you currently pay at less than the
maximum amount. We will not increase any charge beyond the highest maximum
noted in the tables in "Tables of policy charges" under "Risk/benefit
summary: Charges and expenses you will pay" earlier in this prospectus.
. You may have to pay a surrender charge and there may be adverse tax
consequences if you wish to discontinue some or all of your insurance
coverage under a policy.
. Partial withdrawals from your policy are available only after the first
policy year and must be at least $500 and no more than the net cash
surrender value. Under certain circumstances, we will automatically reduce
your policy's face amount as a result of a partial withdrawal.
Your policy permits other transactions that also have risks. These and other
risks and benefits of investing in a policy are discussed in detail throughout
this prospectus.
A comprehensive discussion of the risks of each investment option may be found
in the Trust prospectus for that investment option.
MSO RISK FACTORS
There are risks associated with some features of the Market Stabilizer
Option(R):
. There is a risk of a substantial loss of your principal because you agree
to absorb all losses from the portion of any negative Index performance
that exceeds -25%.
. Your Index-Linked Return is also limited by the Growth Cap Rate, which
could cause your Index-Linked Return to be lower than it would otherwise be
if you participated in the full performance of the S&P 500 Price Return
index.
. You will not know what the Growth Cap Rate is before the Segment starts.
Therefore, you will not know in advance the upper limit on the return that
may be credited to your investment in a Segment.
. Negative consequences apply if, for any reason, amounts you have invested
in a Segment are removed before the Segment Maturity Date. Specifically,
with respect to the amounts removed early, you would (1) forfeit any
positive Index performance and (2) be subject to an Early Distribution
Adjustment that exposes you to a risk of potentially substantial loss of
principal. This exposure is designed to be consistent with the treatment of
losses on amounts held to the Segment Maturity Date. EVEN WHEN THE INDEX
PERFORMANCE HAS BEEN POSITIVE, THE EDA WILL CAUSE YOU TO LOSE SOME
PRINCIPAL ON AN EARLY REMOVAL.
-- The following types of removals of account value from a Segment will
result in the above-mentioned consequences to you, if the removals occur
prior to the Segment Maturity Date: (a) a surrender of your policy; (b) a
loan from your policy; (c) a distribution in order to enable your policy
to continue to qualify as life insurance under the federal tax laws;
(d) certain transfers in connection with the exercise of a rider
available under your policy; and (e) a charge or unpaid policy loan
interest that we deduct from your Segment Account Value because the
Charge Reserve Amount and other funds are insufficient to cover them in
their entirety. The Charge Reserve Amount may become insufficient because
of policy changes that you request, additional premium payments,
investment performance, policy loans, policy partial withdrawals from
other investment options besides the MSO, and any increases we make in
current charges for the policy (including for the MSO and optional
riders).
-- Certain of the above types of early removals can occur (and thus result
in penalties to you) without any action on your part. Examples include
(i) certain distributions we might make from your Segment Account Value
to enable your policy to continue to qualify as life insurance and
(ii) deductions we might make from your Segment Account Value to pay
charges if the Charge Reserve Amount becomes insufficient.
-- Any applicable EDA will generally be affected by changes in both the
volatility and level of the S&P 500 Price Return index. Any EDA applied
to any Segment Account Value is linked to the estimated value of a put
option on the S&P 500 Price Return index as described in "About the
Market Stabilizer Option(R)" later in this prospectus. The estimated
value of the put option and, consequently, the amount of the EDA will
generally be higher after increases in market volatility or after the
Index experiences a negative return following the Segment Start Date.
. Once policy account value is in a Segment, you cannot transfer out of a
Segment. You can only make withdrawals out of a Segment if you surrender
your policy. This would result in the imposition of any applicable
surrender charges and EDAs.
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
. We may not offer new Segments so there is also the possibility that a
Segment may not be available for a Segment Renewal at the end of your
Segment Term(s).
. We also reserve the right to substitute an alternative index for the S&P
500 Price Return index, which could reduce the Growth Cap Rates we can
offer.
. No company other than AXA Equitable has any legal responsibility to pay
amounts that AXA Equitable owes under the policies.
. You do not have any rights in the securities underlying the index,
including, but not limited to, (i) interest payments, (ii) dividend
payments or (iii) voting rights.
. Your Segment Maturity Value is dependent on the performance of the index on
the Segment Maturity Date.
. Upon advance notification, AXA Equitable reserves the right to implement a
Segment Maturity GIO Limitation. Please see "Appendix III: Policy
variations" later in this prospectus for more information.
. Past performance of the index is no indication of future performance.
. The amounts required to be maintained in the Unloaned GIO for the Charge
Reserve Amount during the Segment Term may earn a return that is less than
the return you might have earned on those amounts in another investment
option had you not invested in a Segment.
Please see "About the Market Stabilizer Option(R)" later in this prospectus for
more detailed information about this investment option.
HOW THE INCENTIVE LIFE OPTIMIZER(R) II VARIABLE LIFE INSURANCE POLICY IS
AVAILABLE
Incentive Life Optimizer(R) II is primarily intended for purchasers other than
retirement plans. However, we do not place limitations on its use. Please see
"Tax information" for more information. Incentive Life Optimizer(R) II is
available for issue ages 0 to 85.
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RISK/BENEFIT SUMMARY: POLICY FEATURES, BENEFITS AND RISKS
3. Who is AXA Equitable?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
AXA Equitable Holdings, Inc. and its consolidated subsidiaries managed
approximately $618.6 billion in assets as of December 31, 2018. For more than
150 years AXA Equitable has been among the largest insurance companies in the
United States. We are licensed to sell life insurance and annuities in all
fifty states, the District of Columbia, Puerto Rico, and the U.S. Virgin
Islands. Our home office is located at 1290 Avenue of the Americas, New York,
NY 10104.
20
WHO IS AXA EQUITABLE?
HOW TO REACH US
To obtain (1) any forms you need for communicating with us, (2) unit values and
other values under your policy, and (3) any other information or materials that
we provide in connection with your policy or the Portfolios, you may
communicate with our Administrative Office as listed below for the purposes
described. Please refer to "Telephone and Internet requests" for effective
dates for processing telephone, Internet and fax requests, later in this
prospectus.
BY MAIL:
AT THE POST OFFICE BOX FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
P.O. Box 1047
Charlotte, North Carolina 28201-1047
BY EXPRESS DELIVERY ONLY:
AT THE STREET ADDRESS FOR OUR ADMINISTRATIVE OFFICE:
AXA Equitable -- AXA Life Operations Center
8501 IBM Drive, Suite 150
Charlotte, North Carolina 28262-4333
1-704-341-7000 (for express delivery purposes only)
BY PHONE:
Monday through Thursday, 8:00 am to 7:00 pm and Friday, 8:00 am to 5:30 pm,
Eastern Time: 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of
the U.S.).
BY E-MAIL:
life-service@axa.us.com
BY FAX:
1-855-268-6378
BY INTERNET:
You may register for online account access at www.axa.com or us.axa.com for
those outside the U.S. Our website provides access to account information and
customer service. After registering, you can view account details, perform
certain transactions, print customer service forms and find answers to common
questions.
REQUIRED FORMS. We require that the following types of communications be on
specific forms we provide for that purpose:
(1)request for our automatic transfer service (our dollar cost averaging
service);
(2)request for our asset rebalancing service;
(3)transfers among investment options (if submitted by e-mail);
(4)designation of new policy owner(s); and
(5)designation of new beneficiary(ies).
OTHER REQUESTS. We also have specific forms that we recommend you use for the
following:
(a)policy surrenders;
(b)transfers among investment options (not submitted by e-mail);
(c)changes in allocation percentages for premiums and deductions;
(d)electing the paid up death benefit guarantee; and
(e)electing the MSO and any MSO transactions.
You can also change your allocation percentages, transfer among investment
options and/or change your address (1) by phone (2) over the Internet, through
axa.com or us.axa.com for those outside the U.S., or (3) by writing our
Administrative Office. For more information about transaction requests you can
make by phone or over the Internet, see "How to make transfers" and "Telephone
and Internet requests" later in this prospectus. In the future, we may require
that certain requests be completed over the Internet.
Certain methods of contacting us, such as by telephone or electronically, may
be unavailable or delayed (for example our fax service may not be available at
all times and/or we may be unavailable due to emergency closing). In addition,
the level and type of service available may be restricted based on criteria
established by us.
We reserve the right to limit access to these services if we determine that you
are engaged in a disruptive transfer activity, such as "market timing." (See
"Disruptive transfer activity" in "More information about other matters.")
FORMAL REQUIREMENTS. Except for properly authorized telephone or Internet
transactions, any notice or request that does not use our standard form must be
in writing. It must be dated and signed by you and should also specify your
name, title (if applicable), the insured person's name (if different), your
policy number and adequate details about the notice you wish to give or other
action you wish us to take. We may require you to return your policy to us
before we make certain policy changes that you may request.
The proper person to sign forms, notices and requests would normally be the
owner or any other person that our procedures permit to exercise the right or
privilege in question. If there are joint owners all must sign. Any irrevocable
beneficiary or assignee that we have on our records also must sign certain
types of requests.
You should send all requests, notices and payments to our Administrative Office
at the addresses specified above. We will also accept requests and notices by
fax at the above number, if we believe them to be genuine. We reserve the
right, however, to require an original signature before acting on any faxed
item. You must send premium payments after the first one to our Administrative
Office at the above addresses; except that you should send any premiums for
which we have billed you to the address on the billing notice.
EDELIVERY
You can register to receive statements and other documents electronically. You
can do so by visiting our website at www.axa.com.
ABOUT OUR SEPARATE ACCOUNT FP
Each variable investment option is a part (or "subaccount") of our Separate
Account FP. We established Separate Account FP under special provisions of the
New York Insurance Law. These provisions prevent creditors from any other
business we conduct from reaching the assets we hold in our variable investment
options for owners of our variable life insurance policies. We are the legal
owner of all of the assets in Separate Account FP and may withdraw any amounts
that exceed our reserves and other liabilities with respect to variable
investment options under our policies. For example, we may withdraw amounts from
21
WHO IS AXA EQUITABLE?
Separate Account FP that represent our investments in Separate Account FP or
that represent fees and charges under the policies that we have earned. Income,
gains and losses credited to, or charged against Separate Account FP reflect
its own investment experience and not the investment experience of AXA
Equitable's other assets.
Separate Account FP is registered with the SEC under the Investment Company Act
of 1940 and is registered and classified under that act as a "unit investment
trust." The SEC, however, does not manage or supervise AXA Equitable or
Separate Account FP. Although the Separate Account is registered, the SEC does
not monitor the activity of Separate Account FP on a daily basis. AXA Equitable
is not required to register, and is not registered, as an investment company
under the Investment Company Act of 1940.
Each subaccount (variable investment option) of Separate Account FP available
under Incentive Life Optimizer(R) II invests solely in the applicable class of
shares issued by the corresponding Portfolio of the applicable Trust. Separate
Account FP immediately reinvests all dividends and other distributions it
receives from a Portfolio in additional shares of that class in that Portfolio.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable life insurance and/or annuity products, and to
separate accounts of insurance companies, both affiliated and unaffiliated with
AXA Equitable. EQ Advisors Trust and AXA Premier VIP Trust also sell their
shares to the trustee of a qualified plan for AXA Equitable. We currently do
not foresee any disadvantages to our policy owners arising out of these
arrangements. However, the Board of Trustees or Directors of each Trust intends
to monitor events to identify any material irreconcilable conflicts that may
arise and to determine what action, if any, should be taken in response. If we
believe that a Board's response insufficiently protects our policyowners, we
will see to it that appropriate action is taken to do so.
ABOUT SEPARATE ACCOUNT NO. 67
Amounts allocated to the MSO are held in a "non-unitized" separate account we
have established under the New York Insurance Law. We own the assets of the
separate account, as well as any favorable investment performance on those
assets. You do not participate in the performance of the assets held in this
separate account. We may, subject to state law that applies, transfer all
assets allocated to the separate account to our general account. These assets
are also available to the insurer's general creditors and an owner should look
to the financial strength of AXA Equitable for its claims-paying ability. We
guarantee all benefits relating to your value in the MSO, regardless of whether
assets supporting the MSO are held in a separate account or our general account.
Our current plans are to invest separate account assets in fixed-income
obligations, including corporate bonds, mortgage-backed and asset-backed
securities, and government and agency issues. Futures, options and interest
rate swaps may be used for hedging purposes.
Although the above generally describes our plans for investing the assets
supporting our obligations under MSO, we are not obligated to invest those
assets according to any particular plan except as we may be required to by
state insurance laws.
YOUR VOTING PRIVILEGES
VOTING OF PORTFOLIO SHARES. As the legal owner of any Portfolio shares that
support a variable investment option, we will attend (and have the right to
vote at) any meeting of shareholders of the Portfolio (or the Trusts). To
satisfy currently-applicable legal requirements, however, we will give you the
opportunity to tell us how to vote the number of each Portfolio's shares that
are attributable to your policy. The number of full and fractional votes you
are entitled to will be determined by dividing the policy account value (minus
any policy indebtedness) allocable to an investment option by the net asset
value per unit for the Portfolio underlying that investment option. We will
vote shares attributable to policies for which we receive no instructions in
the same proportion as the instructions we do receive from all policies that
participate in our Separate Account FP (discussed below). With respect to any
Portfolio shares that we are entitled to vote directly (because we do not hold
them in a separate account or because they are not attributable to policies),
we will vote in proportion to the instructions we have received from all
holders of variable annuity and variable life insurance policies who are using
that Portfolio. One effect of proportional voting is that a small number of
policy owners may control the outcome of a vote.
Under current legal requirements, we may disregard the voting instructions we
receive from policy owners only in certain narrow circumstances prescribed by
SEC regulations. If we do, we will advise you of the reasons in the next annual
or semiannual report we send to you.
VOTING AS POLICY OWNER. In addition to being able to instruct voting of
Portfolio shares as discussed above, policy owners that use our variable
investment options may in a few instances be called upon to vote on matters
that are not the subject of a shareholder vote being taken by any Portfolio. If
so, you will have one vote for each $100 of policy account value in any such
option; and we will vote our interest in Separate Account FP in the same
proportion as the instructions we receive from holders of Incentive Life
Optimizer(R) II and other policies that Separate Account FP supports.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
22
WHO IS AXA EQUITABLE?
4. About the Portfolios of the Trusts
We offer both affiliated and unaffiliated Trusts, which in turn offer one or
more Portfolios. AXA Equitable Funds Management Group, LLC ("AXA FMG"), a
wholly owned subsidiary of AXA Equitable, serves as the investment adviser of
the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some
affiliated Portfolios, AXA FMG has entered into sub-advisory agreements with
one or more other investment advisers (the "sub-advisers") to carry out
investment decisions for the Portfolios. As such, among other responsibilities,
AXA FMG oversees the activities of the sub-advisers with respect to the
affiliated Trusts and is responsible for retaining or discontinuing the
services of those sub-advisers. The chart below indicates the sub-adviser(s)
for each Portfolio, if any. The chart below also shows the currently available
Portfolios and their investment objectives.
You should be aware that AXA Advisors, LLC and AXA Distributors, LLC (together,
the "Distributors") directly or indirectly receive 12b-1 fees from affiliated
Portfolios for providing certain distribution and/or shareholder support
services. These fees will not exceed 0.25% of the Portfolios' average daily net
assets. The affiliated Portfolios' sub-advisers and/or their affiliates may
also contribute to the cost of expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the sub-advisers'
respective Portfolios. In addition, AXA FMG, a wholly owned subsidiary of AXA
Equitable, receives management fees and administrative fees in connection with
the services it provides to the Portfolios. As such, it may be more profitable
for us to offer affiliated Portfolios than to offer unaffiliated Portfolios.
AXA Equitable or the Distributors may directly or indirectly receive 12b-1 fees
and additional payments from certain unaffiliated Portfolios, their advisers,
sub-advisers, distributors or affiliates, for providing certain administrative,
marketing, distribution and/or shareholder support services. These fees and
payments range from 0% to 0.60% of the unaffiliated Portfolios' average daily
net assets. The Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
Portfolios.
As a policy owner, you may bear the costs of some or all of these fees and
payments through your indirect investment in the Portfolios. (See the
Portfolios' prospectuses for more information.) These fees and payments, as
well as the Portfolios' investment management fees and administrative expenses,
will reduce the underlying Portfolios' investment returns. AXA Equitable may
profit from these fees and payments. AXA Equitable considers the availability
of these fees and payment arrangements during the selection process for the
underlying Portfolios. These fees and payment arrangements may create an
incentive for us to select Portfolios (and classes of shares of Portfolios)
that pay us higher amounts.
Some affiliated Portfolios invest in other affiliated Portfolios (the "EQ Fund
of Fund Portfolios"). The EQ Fund of Fund Portfolios offer policy owners a
convenient opportunity to invest in other Portfolios that are managed and have
been selected for inclusion in the EQ Fund of Fund Portfolios by AXA FMG. AXA
Advisors, LLC, an affiliated broker-dealer of AXA Equitable, may promote the
benefits of such Portfolios to policy owners and/or suggest that policy owners
consider whether allocating some or all of their account value to such
Portfolios is consistent with their desired investment objectives. In doing so,
AXA Equitable, and/or its affiliates, may be subject to conflicts of interest
insofar as AXA Equitable may derive greater revenues from the EQ Fund of Fund
Portfolios than certain other Portfolios available to you under your policy.
Please see "Allocating your contributions" later in this section for more
information about your role in managing your allocations.
As described in more detail in the Portfolio prospectuses, the EQ Managed
Volatility Portfolios may utilize a proprietary volatility management strategy
developed by AXA FMG (the "EQ volatility management strategy") and, in
addition, certain EQ Fund of Fund Portfolios may invest in affiliated
Portfolios that utilize this strategy. The EQ volatility management strategy
uses futures and options, such as exchange-traded futures and options contracts
on securities indices, to reduce the Portfolio's equity exposure during periods
when certain market indicators indicate that market volatility is above
specific thresholds set for the Portfolio. When market volatility is increasing
above the specific thresholds set for a Portfolio utilizing the EQ volatility
management strategy, the adviser of the Portfolio may reduce equity exposure.
Although this strategy is intended to reduce the overall risk of investing in
the Portfolio, it may not effectively protect the Portfolio from market
declines and may increase its losses. Further, during such times, the
Portfolio's exposure to equity securities may be less than that of a
traditional equity portfolio. This may limit the Portfolio's participation in
market gains and result in periods of underperformance, including those periods
when the specified benchmark index is appreciating, but market volatility is
high.
The EQ Managed Volatility Portfolios that include the EQ volatility management
strategy as part of their investment objective and/or principal investment
strategy, and the EQ Fund of Fund Portfolios that invest in other Portfolios
that use the EQ volatility management strategy, are identified below in the
chart by a "(check mark)" under the column entitled "Volatility Management."
Portfolios that utilize the EQ volatility management strategy (or, in the case
of certain EQ Fund of Fund Portfolios, invest in other Portfolios that use the
EQ volatility management strategy) are designed to reduce the overall
volatility of your account value and provide you with risk-adjusted returns
over time. During rising markets, the EQ volatility management strategy,
however, could result in your account value rising less than would have been
the case had you been invested in a Portfolio that does not utilize the EQ
volatility management strategy or, in the case of the EQ Fund of Fund
Portfolios, that invest exclusively in other Portfolios that do not use the
volatility management strategy. Conversely, investing in investment options
that feature a managed-volatility strategy may be helpful in a declining market
when high market volatility triggers a reduction in the investment option's
equity exposure because during these periods of high volatility, the risk of
losses from investing in equity securities may increase. In these instances,
your account value may decline less than would have been the case had you not
been invested in investment options that feature a volatility management
strategy.
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the EQ volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
23
ABOUT THE PORTFOLIOS OF THE TRUSTS
differ from the EQ volatility management strategy. Any such unaffiliated
Portfolio is not identified under "Volatility Management" below in the chart.
Such techniques could also impact your account value in the same manner
described above. Please see the Portfolio prospectuses for more information
about the Portfolios' objective and strategies.
Portfolio allocations in certain AXA variable annuity contracts with guaranteed
benefits are subject to our Asset Transfer Program (ATP) feature. The ATP helps
us manage our financial exposure in connection with providing certain
guaranteed benefits, by using predetermined mathematical formulas to move
account value between the EQ/Ultra Conservative Strategy Portfolio (an
investment option utilized solely by the ATP) and the other Portfolios offered
under those contracts. You should be aware that operation of the predetermined
mathematical formulas underpinning the ATP has the potential to adversely
impact the Portfolios, including their performance, risk profile and expenses.
This means that Portfolio investments in contracts with no ATP feature, such as
yours, could still be adversely impacted. Particularly during times of high
market volatility, if the ATP triggers substantial asset flows into and out of
a Portfolio, it could have the following effects on all contract owners
invested in that Portfolio:
(a)By requiring a Portfolio sub-adviser to buy and sell large amounts of
securities at inopportune times, a Portfolio's investment performance and
the ability of the sub-adviser to fully implement the Portfolio's
investment strategy could be negatively affected; and
(b)By generating higher turnover in its securities or other assets than it
would have experienced without being impacted by the ATP, a Portfolio
could incur higher operating expense ratios and transaction costs than
comparable funds. In addition, even Portfolios structured as
funds-of-funds that are not available for investment by contract owners
who are subject to the ATP could also be impacted by the ATP if those
Portfolios invest in underlying funds that are themselves subject to
significant asset turnover caused by the ATP. Because the ATP formulas
generate unique results for each contract, not all contract owners who
are subject to the ATP will be affected by operation of the ATP in the
same way. On any particular day on which the ATP is activated, some
contract owners may have a portion of their account value transferred to
the EQ/Ultra Conservative Strategy Portfolio investment option and others
may not. If the ATP causes significant transfers of total account value
out of one or more Portfolios, any resulting negative effect on the
performance of those Portfolios will be experienced to a greater extent
by a contract owner (with or without the ATP) invested in those
Portfolios whose account value was not subject to the transfers.
PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP
TRUST CLASS B
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Seeks to achieve high total return through . AXA Equitable Funds Management
MULTI-SECTOR BOND a combination of current income and Group, LLC
capital appreciation.
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP GROWTH capital. Group, LLC
----------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Seeks to achieve long-term growth of . AXA Equitable Funds Management
CAP VALUE capital. Group, LLC
----------------------------------------------------------------------------------------------------------------------
TARGET 2025 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
----------------------------------------------------------------------------------------------------------------------
TARGET 2035 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
----------------------------------------------------------------------------------------------------------------------
TARGET 2045 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
----------------------------------------------------------------------------------------------------------------------
TARGET 2055 Seeks the highest total return over time . AXA Equitable Funds Management
ALLOCATION consistent with its asset mix. Total return Group, LLC
includes capital growth and income.
|
------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------
1290 VT CONVERTIBLE Seeks a high level of total return. . AXA Equitable Funds Management
SECURITIES Group, LLC
. Palisade Capital Management, L.L.C.
------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to achieve total return from long- . AXA Equitable Funds Management
DYNAMIC ALLOCATION term capital appreciation and income. Group, LLC
. DoubleLine Capital LP
------------------------------------------------------------------------------------------------------------------
|
24
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Seeks to maximize current income and . AXA Equitable Funds Management
OPPORTUNISTIC BOND total return. Group, LLC
. DoubleLine Capital LP
----------------------------------------------------------------------------------------------------------------------
1290 VT EQUITY Seeks a combination of growth and . AXA Equitable Funds Management
INCOME income to achieve an above-average and Group, LLC
consistent total return. . Barrow, Hanley, Mewhinney & Strauss
LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO Seeks to achieve capital appreciation. . AXA Equitable Funds Management
MERGERS & Group, LLC
ACQUISITIONS . GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO SMALL Seeks to maximize capital appreciation. . AXA Equitable Funds Management
COMPANY VALUE Group, LLC
. GAMCO Asset Management, Inc.
----------------------------------------------------------------------------------------------------------------------
1290 VT SMARTBETA Seeks to achieve long-term capital . AXA Equitable Funds Management
EQUITY appreciation. Group, LLC
. AXA Rosenberg Investment
Management, LLC
----------------------------------------------------------------------------------------------------------------------
1290 VT SOCIALLY Seeks to achieve long-term capital . AXA Equitable Funds Management
RESPONSIBLE appreciation. Group, LLC
. BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - Seeks long-term capital appreciation and . AXA Equitable Funds Management
ALT 20 current income. Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/400 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(1)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/500 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(2)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/2000 MANAGED Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
VOLATILITY/(*)(3)/ capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/AB SMALL CAP Seeks to achieve long-term growth of . AllianceBernstein L.P.
GROWTH/(*)(4)/ capital. . AXA Equitable Funds Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/AMERICAN CENTURY Seeks to achieve long-term capital . American Century Investment
MID CAP VALUE growth. Income is a secondary objective. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/BALANCED Seeks long-term capital appreciation and . AXA Equitable Funds Management (check mark)
STRATEGY/(*)(5)/ current income. Group, LLC
----------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC Seeks to achieve capital appreciation and . AXA Equitable Funds Management
VALUE EQUITY secondarily, income. Group, LLC
. BlackRock Investment Management, LLC
----------------------------------------------------------------------------------------------------------------------
|
25
ABOUT THE PORTFOLIOS OF THE TRUSTS
-------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of . AXA Equitable Funds Management
RESEARCH capital. Group, LLC
. Capital Guardian Trust Company
-------------------------------------------------------------------------------------------------------------------------
EQ/CLEARBRIDGE Seeks to achieve long-term capital . AXA Equitable Funds Management
LARGE CAP growth. Group, LLC
GROWTH/(*)(6)/ . ClearBridge Investments, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 3000(R) Group, LLC
Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 3000(R) Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/CONSERVATIVE Seeks current income and growth of . AXA Equitable Funds Management (check mark)
GROWTH capital, with a greater emphasis on Group, LLC
STRATEGY/(*)(7)/ current income.
-------------------------------------------------------------------------------------------------------------------------
EQ/CONSERVATIVE Seeks a high level of current income. . AXA Equitable Funds Management (check mark)
STRATEGY/(*)(8)/ Group, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX Seeks to achieve a total return before . AXA Equitable Funds Management
expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays U.S. . SSgA Funds Management, Inc.
Intermediate Government/Credit Bond
Index, including reinvestment of dividends,
at a risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government/Credit Bond Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Seeks to achieve a total return before . AXA Equitable Funds Management
expenses that approximates the total return Group, LLC
performance of the Standard & Poor's 500 . AllianceBernstein L.P.
Composite Stock Index, including
reinvestment of dividends, at a risk level
consistent with that of the Standard &
Poor's 500 Composite Stock Index.
-------------------------------------------------------------------------------------------------------------------------
EQ/FIDELITY Seeks to achieve long-term capital . AXA Equitable Funds Management
INSTITUTIONAL appreciation. Group, LLC
AM(R) LARGE CAP . FIAM LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN RISING Seeks to achieve long-term capital . AXA Equitable Funds Management
DIVIDENDS appreciation. Preservation of capital, while Group, LLC
not a goal, is also an important . Franklin Advisers, Inc.
consideration.
-------------------------------------------------------------------------------------------------------------------------
EQ/FRANKLIN Seeks a high level of current income. A . AXA Equitable Funds Management
STRATEGIC INCOME secondary goal is long-term capital Group, LLC
appreciation. . Franklin Mutual Advisers, LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL BOND PLUS Seeks to achieve capital growth and . AXA Equitable Funds Management
current income. Group, LLC
. BlackRock Investment Management, LLC
. Wells Fargo Asset Management
(International) LLC and
. Wells Capital Management, Inc.
-------------------------------------------------------------------------------------------------------------------------
|
26
ABOUT THE PORTFOLIOS OF THE TRUSTS
--------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
--------------------------------------------------------------------------------------------------------------------------
EQ/GLOBAL EQUITY Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk- Group, LLC
VOLATILITY/(*)(9)/ adjusted returns and managing volatility . BlackRock Investment Management, LLC
in the Portfolio. . Morgan Stanley Investment
Management Inc.
. OppenheimerFunds, Inc.
--------------------------------------------------------------------------------------------------------------------------
EQ/GOLDMAN SACHS Seeks to achieve long-term capital . AXA Equitable Funds Management
MID CAP VALUE appreciation. Group, LLC
. Goldman Sachs Asset Management, L.P.
--------------------------------------------------------------------------------------------------------------------------
EQ/GROWTH Seeks long-term capital appreciation and . AXA Equitable Funds Management (check mark)
STRATEGY/(*)(10)/ current income, with a greater emphasis Group, LLC
on capital appreciation.
--------------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Seeks to achieve a total return before . AXA Equitable Funds Management
GOVERNMENT BOND expenses that approximates the total return Group, LLC
performance of the Bloomberg Barclays . SSgA Funds Management, Inc.
U.S. Intermediate Government Bond Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Bloomberg Barclays U.S. Intermediate
Government Bond Index.
--------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
CORE MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(11)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . EARNEST Partners, LLC
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
. Federated Global Investment
Management Corp.
--------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve a total return (before . AXA Equitable Funds Management
EQUITY INDEX expenses) that approximates the total return Group, LLC
performance of a composite index . AllianceBernstein L.P.
comprised of 40% DJ Euro STOXX 50 Index,
25% FTSE 100 Index, 25% TOPIX Index,
and 10% S&P/ASX 200 Index, including
reinvestment of dividends, at a risk level
consistent with that of the composite index.
--------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(12)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
--------------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Seeks to provide current income and long- . AXA Equitable Funds Management (check mark)
VALUE MANAGED term growth of income, accompanied by Group, LLC
VOLATILITY/(*)(13)/ growth of capital with an emphasis on . BlackRock Investment Management, LLC
risk-adjusted returns and managing . Harris Associates L.P.
volatility in the Portfolio.
--------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK Seeks to achieve capital growth and . AXA Equitable Funds Management
income. Group, LLC
. Invesco Advisers, Inc.
--------------------------------------------------------------------------------------------------------------------------
|
27
ABOUT THE PORTFOLIOS OF THE TRUSTS
------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO GLOBAL Seeks to achieve total return through . AXA Equitable Funds Management
REAL ESTATE growth of capital and current income. Group, LLC
. Invesco Advisers, Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/INVESCO Seeks to achieve long-term growth of . AXA Equitable Funds Management
INTERNATIONAL capital. Group, LLC
GROWTH . Invesco Advisers, Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/IVY ENERGY Seeks to provide capital growth and . AXA Equitable Funds Management
appreciation. Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/IVY MID CAP Seeks to provide growth of capital. . AXA Equitable Funds Management
GROWTH Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/IVY SCIENCE AND Seeks to provide growth of capital. . AXA Equitable Funds Management
TECHNOLOGY Group, LLC
. Ivy Investment Management Company
------------------------------------------------------------------------------------------------------------------------
EQ/JANUS Seeks to achieve capital growth. . AXA Equitable Funds Management
ENTERPRISE/(*)(14)/ Group, LLC
. Janus Capital Management LLC
------------------------------------------------------------------------------------------------------------------------
EQ/JPMORGAN VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management
OPPORTUNITIES appreciation. Group, LLC
. J.P. Morgan Investment
Management Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP CORE Seeks to achieve long-term growth of . AXA Equitable Funds Management (check mark)
MANAGED capital with an emphasis on risk-adjusted Group, LLC
VOLATILITY/(*)(15)/ returns and managing volatility in the . BlackRock Investment Management, LLC
Portfolio. . Capital Guardian Trust Company
. Vaughan Nelson Investment Management
. Thornburg Investment Management,
Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Growth Index, including reinvestment of
dividends at a risk level consistent with
the Russell 1000(R) Growth Index.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH Seeks to provide long-term capital growth . AXA Equitable Funds Management (check mark)
MANAGED with an emphasis on risk-adjusted returns Group, LLC
VOLATILITY/(*)(16)/ and managing volatility in the Portfolio. . BlackRock Investment Management, LLC
. HS Management Partners, LLC
. Loomis, Sayles & Company, L.P.
. Polen Capital Management, LLC
. T. Rowe Price Associates, Inc.
------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve a total return before . AllianceBernstein L.P.
INDEX expenses that approximates the total . AXA Equitable Funds Management
return performance of the Russell 1000(R) Group, LLC
Value Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 1000(R) Value Index.
------------------------------------------------------------------------------------------------------------------------
|
28
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE Seeks to achieve long-term growth of . AllianceBernstein L.P. (check mark)
MANAGED capital with an emphasis on risk-adjusted . AXA Equitable Funds Management
VOLATILITY/(*)(17)/ returns and managing volatility in the Group, LLC
Portfolio. . BlackRock Investment Management, LLC
. Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/LAZARD EMERGING Seeks to achieve long-term capital . AXA Equitable Funds Management
MARKETS EQUITY appreciation. Group, LLC
. Lazard Asset Management LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/LOOMIS SAYLES Seeks to achieve capital appreciation. . AXA Equitable Funds Management
GROWTH/(*)(18)/ Group, LLC
. Loomis, Sayles & Company, L.P.
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
GROWTH . Massachusetts Financial Services
Company d/b/a MFS Investment
Management
---------------------------------------------------------------------------------------------------------------------------
EQ/MFS(R) Seeks to achieve capital appreciation. . AXA Equitable Funds Management
INTERNATIONAL Group, LLC
VALUE . Massachusetts Financial Services
Company
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Seeks to achieve a total return before . AllianceBernstein L.P.
expenses that approximates the total return . AXA Equitable Funds Management
performance of the Standard & Poor's Group, LLC
MidCap 400(R) Index, including reinvestment
of dividends, at a risk level consistent with
that of the Standard & Poor's MidCap 400(R)
Index.
---------------------------------------------------------------------------------------------------------------------------
EQ/MID CAP VALUE Seeks to achieve long-term capital . AXA Equitable Funds Management (check mark)
MANAGED appreciation with an emphasis on risk Group, LLC
VOLATILITY/(*)(19)/ adjusted returns and managing volatility . BlackRock Investment Management, LLC
in the Portfolio. . Diamond Hill Capital Management,
Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------------
EQ/MODERATE GROWTH Seeks long-term capital appreciation and . AXA Equitable Funds Management (check mark)
STRATEGY/(*)(20)/ current income, with a greater emphasis Group, LLC
on current income.
---------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET/(+)/ Seeks to obtain a high level of current . AXA Equitable Funds Management
income, preserve its assets and maintain Group, LLC
liquidity. . The Dreyfus Corporation
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO REAL RETURN Seeks to achieve maximum real return, . AXA Equitable Funds Management
consistent with preservation of capital and Group, LLC
prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO TOTAL Seeks to achieve maximum total return, . AXA Equitable Funds Management
RETURN consistent with preservation of capital and Group, LLC
prudent investment management. . Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------------
|
29
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA Seeks to generate a return in excess of . AXA Equitable Funds Management
SHORT BOND traditional money market products while Group, LLC
maintaining an emphasis on preservation . Pacific Investment Management
of capital and liquidity. Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/QUALITY BOND PLUS Seeks to achieve high current income . AllianceBernstein L.P.
consistent with moderate risk to capital. . AXA Equitable Funds Management
Group, LLC
. Pacific Investment Management
Company LLC
---------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY Seeks to replicate as closely as possible . AllianceBernstein L.P.
INDEX (before expenses) the total return of the . AXA Equitable Funds Management
Russell 2000(R) Index. Group, LLC
---------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE Seeks to achieve long-term capital . AXA Equitable Funds Management
GROWTH STOCK appreciation and secondarily, income. Group, LLC
. T. Rowe Price Associates, Inc.
---------------------------------------------------------------------------------------------------------------------
EQ/UBS GROWTH AND Seeks to achieve total return through . AXA Equitable Funds Management
INCOME capital appreciation with income as a Group, LLC
secondary consideration. . UBS Asset Management (Americas) Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
AGGRESSIVE EQUITY capital. . AXA Equitable Funds Management
Group, LLC
. ClearBridge Investments, LLC
. Scotia Institutional Asset
Management US, Ltd.
. T. Rowe Price Associates, Inc.
. Westfield Capital Management
Company, L.P.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER CORE Seeks to achieve a balance of high current . AXA Equitable Funds Management
BOND income and capital appreciation, Group, LLC
consistent with a prudent level of risk. . BlackRock Financial Management, Inc.
. DoubleLine Capital LP
. Pacific Investment Management
Company LLC
. SSgA Funds Management, Inc.
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . AllianceBernstein L.P.
CAP GROWTH capital. . AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Franklin Advisers, Inc.
. Wellington Management Company, LLP
---------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID Seeks to achieve long-term growth of . American Century Investment
CAP VALUE capital. Management, Inc.
. AXA Equitable Funds Management
Group, LLC
. BlackRock Investment Management, LLC
. Diamond Hill Capital Management,
Inc.
---------------------------------------------------------------------------------------------------------------------
|
30
ABOUT THE PORTFOLIOS OF THE TRUSTS
---------------------------------------------------------------------------------------------------------------
EQ ADVISORS
TRUST CLASS IB
SHARES INVESTMENT ADVISER (AND SUB-ADVISER(S), VOLATILITY
PORTFOLIO NAME OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------
MULTIMANAGER Seeks to achieve long-term growth of . AllianceBernstein L.P.
TECHNOLOGY capital. . Allianz Global Investors U.S. LLC
. AXA Equitable Funds Management
Group, LLC
. Wellington Management Company, LLP
|
------------------------------------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE FUNDS
(INVESCO VARIABLE
INSURANCE INVESTMENT ADVISER
FUNDS) -- SERIES II (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------------
INVESCO V.I. MID The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP CORE EQUITY capital.
FUND
------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP EQUITY FUND capital.
|
-------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS
INSURANCE SERIES(R) INVESTMENT ADVISER
PORTFOLIO NAME -- (AND SUB-ADVISER(S), AS
CLASS 4 SHARES OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
GLOBAL SMALL The fund's investment objective is to provide long-term . Capital Research and
CAPITALIZATION growth of capital. Management Company
FUND
-------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital Research and
appreciation. Management Company
|
-------------------------------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE INSURANCE
PRODUCTS (VIP) - INVESTMENT ADVISER
SERVICE CLASS 2 (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks high total return through a combination of current . Fidelity Management and
GROWTH & INCOME income and capital appreciation. Research Company (FMR)
PORTFOLIO
-------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID Seeks long-term growth of capital. . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
|
----------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE INSURANCE
PRODUCTS TRUST --
CLASS 2 INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------
FRANKLIN MUTUAL Seeks capital appreciation. Its secondary goal is income. . Franklin Mutual Advisers,
SHARES VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
FRANKLIN SMALL CAP Seeks long-term total return. . Franklin Mutual Advisers,
VALUE VIP FUND LLC
----------------------------------------------------------------------------------------------------------------
TEMPLETON Seeks long-term capital appreciation. . Templeton Asset
DEVELOPING Management Ltd.
MARKETS VIP FUND
----------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with preservation of . Franklin Advisers, Inc.
BOND VIP FUND capital. Capital appreciation is a secondary consideration.
----------------------------------------------------------------------------------------------------------------
TEMPLETON GROWTH Seeks long-term capital growth. . Templeton Global Advisors
VIP FUND Limited
|
-------------------------------------------------------------------------------------------------------------
IVY VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
IVY VIP HIGH INCOME To seek to provide total return through a combination of . Ivy Investment Management
high current income and capital appreciation. Company (IICO)
-------------------------------------------------------------------------------------------------------------
IVY VIP SMALL CAP To seek to provide growth of capital. . Ivy Investment Management
GROWTH Company (IICO)
|
--------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE TRUSTS --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS The fund's investment objective is to seek capital . Massachusetts Financial
TRUST SERIES appreciation. Services Company
--------------------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital . Massachusetts Financial
MASSACHUSETTS appreciation. Services Company
INVESTORS GROWTH
STOCK PORTFOLIO
--------------------------------------------------------------------------------------------------------
|
31
ABOUT THE PORTFOLIOS OF THE TRUSTS
----------------------------------------------------------------------------------------------------------
PIMCO VARIABLE
INSURANCE TRUST --
ADVISOR CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
PIMCO Seeks maximum real return consistent with prudent . Pacific Investment
COMMODITYREALRETURN(R) investment management. Management Company LLC
STRATEGY PORTFOLIO
|
-------------------------------------------------------------------------------------------------------------
T. ROWE PRICE INVESTMENT ADVISER
EQUITY SERIES, INC. (AND SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
T. ROWE PRICE Seeks a high level of dividend income and long-term . T. Rowe Price Associates,
EQUITY INCOME capital growth primarily through investments in stocks. Inc.
PORTFOLIO - II
-------------------------------------------------------------------------------------------------------------
|
VANECK VIP TRUST --
SERVICE CLASS INVESTMENT ADVISER (AND
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------
VANECK VIP GLOBAL Seeks long-term capital appreciation by investing . Van Eck Associates
HARD ASSETS FUND primarily in hard asset securities. Income is a secondary Corporation
consideration.
---------------------------------------------------------------------------------------------------------------
|
(+)The Portfolio operates as a "government money market fund." The Portfolio
will invest at least 99.5% of its total assets in U.S. government
securities, cash, and/or repurchase agreements that are fully collateralized
by U.S. government securities or cash.
(*)The chart below reflects the variable investment option's name in effect
until on or about May 20, 2019. The number in the "FN" column corresponds
with the number contained in the table above.
-------------------------------------------------
FN VARIABLE INVESTMENT OPTION NAME
-------------------------------------------------
(1) AXA 400 Managed Volatility
-------------------------------------------------
(2) AXA 500 Managed Volatility
-------------------------------------------------
(3) AXA 2000 Managed Volatility
-------------------------------------------------
(4) AXA/AB Small Cap Growth
-------------------------------------------------
(5) AXA Balanced Strategy
-------------------------------------------------
(6) AXA/ClearBridge Large Cap Growth
-------------------------------------------------
(7) AXA Conservative Growth Strategy
-------------------------------------------------
(8) AXA Conservative Strategy
-------------------------------------------------
(9) AXA Global Equity Managed Volatility
-------------------------------------------------
(10) AXA Growth Strategy
-------------------------------------------------
(11) AXA International Core Managed Volatility
-------------------------------------------------
(12) AXA International Managed Volatility
-------------------------------------------------
(13) AXA International Value Managed Volatility
-------------------------------------------------
(14) AXA/Janus Enterprise
-------------------------------------------------
(15) AXA Large Cap Core Managed Volatility
-------------------------------------------------
(16) AXA Large Cap Growth Managed Volatility
-------------------------------------------------
(17) AXA Large Cap Value Managed Volatility
-------------------------------------------------
(18) AXA/Loomis Sayles Growth
-------------------------------------------------
(19) AXA Mid Cap Value Managed Volatility
-------------------------------------------------
(20) AXA Moderate Growth Strategy
-------------------------------------------------
|
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF THE TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-777-6510 (FOR U.S.
RESIDENTS) OR 1-704-341-7000 (OUTSIDE OF THE U.S.).
32
ABOUT THE PORTFOLIOS OF THE TRUSTS
5. About the Market Stabilizer Option(R) (applicable only if allocating amounts
to the MSO)
We offer a Market Stabilizer Option(R) that provides a rate of return tied to
the performance of the S&P 500 Price Return Index.
DEFINITIONS
CHARGE RESERVE AMOUNT -- A minimum amount of policy account value in the
Unloaned GIO that you are required to maintain in order to approximately cover
the estimated monthly charges for the policy (including, but not limited to,
the policy's monthly cost of insurance charge, the policy's monthly
administrative charge, the policy's monthly mortality and expense risk charge,
the MSO's monthly Variable Index Segment Account Charge and any monthly
optional rider charges) during the Segment Term. The Charge Reserve Amount will
be determined on each Segment Start Date as an amount projected to be
sufficient to cover all of the policy's monthly deductions during the Segment
Term, assuming at the time such calculation is made that no interest or
investment performance is credited to or charged against the policy account and
that no policy changes or additional premium payments are made. The Charge
Reserve Amount will be reduced by each subsequent monthly deduction (but not to
less than zero). THERE IS NO REQUIREMENT TO MAINTAIN A CHARGE RESERVE AMOUNT IF
YOU ARE NOT IN A SEGMENT. Please see "Segments" later in this section for more
information about the investment options from which account value could be
transferred to the Unloaned GIO on a Segment Start Date (or the effective date
of a requested face amount increase) in order to meet this requirement.
DOWNSIDE PROTECTION (ALSO REFERRED TO IN YOUR POLICY AS THE "SEGMENT LOSS
ABSORPTION THRESHOLD RATE") -- This is your protection against negative
performance of the S&P 500 Price Return index for a Segment held until its
Segment Maturity Date. It is currently -25%. THE DOWNSIDE PROTECTION IS SET ON
THE SEGMENT START DATE AND ANY DOWNSIDE PROTECTION IN EXCESS OF -25%, WILL BE
SET AT AXA EQUITABLE'S SOLE DISCRETION. However, the Downside Protection will
not change during a Segment Term and at least -25% of Downside Protection will
always be provided when a Segment is held until the Segment Maturity Date.
EARLY DISTRIBUTION ADJUSTMENT ("EDA," MAY ALSO BE REFERRED TO IN YOUR POLICY AS
THE "MARKET VALUE ADJUSTMENT") -- The EDA is an adjustment that we make to your
Segment Account Value, before a Segment matures, in the event you surrender
your policy, take a loan from a Segment or if we should find it necessary to
make deductions for monthly charges or any other distribution from a Segment.
(Such other distributions would include any distributions from the policy that
we deem necessary to continue to qualify the policy as life insurance under
applicable tax law, any unpaid loan interest, or any transfer in connection
with the exercise of a rider available under your policy.) An EDA that is made
will cause you to lose principal, through the application of a Put Option
Factor, and that loss could be substantial. However, because of a pro rata
refund of certain charges already paid that is included in the EDA , the net
effect of the EDA will not always result in the reduction of principal. The EDA
will usually result in a reduction in your Segment Account Value and your other
policy values. Therefore, you should give careful consideration before taking
any early loan or surrender, or allowing the value in your other investment
options to fall so low that we must make any monthly deduction from a Segment.
Please see "Early Distribution Adjustment" later in this section for more
information.
GROWTH CAP RATE -- The maximum rate of return that will be applied to a Segment
Account Value. THE GROWTH CAP RATE IS SET FOR EACH SEGMENT ON THE SEGMENT START
DATE. WHILE THE GROWTH CAP RATE IS SET AT THE AXA EQUITABLE'S SOLE DISCRETION,
the Growth Cap Rate will not change during a Segment Term and the Growth Cap
Rate will always be at least 6%.
INDEX -- The S&P 500 Price Return index, which is the S&P 500 index excluding
dividends. This index includes 500 leading companies in leading industries in
the U.S. economy.
INDEX PERFORMANCE RATE -- The Index Performance Rate measures the percentage
change in the Index during a Segment Term for each Segment. If the Index is
discontinued or if the calculation of the Index is substantially changed, we
reserve the right to substitute an alternative index. We also reserve the right
to choose an alternative index at our discretion. Please see "Change in Index"
for more information.
The Index Performance Rate is calculated by ((b) divided by (a)) minus one,
where:
(a)is the value of the Index at the close of business on the Segment Start
Date, and
(b)is the value of the Index at the close of business on the Segment Maturity
Date.
We determine the value of the Index at the close of business, which is the end
of a business day. Generally, a business day is any day the New York Stock
Exchange is open for trading. If the New York Stock Exchange is not open for
trading or if the Index value is, for any other reason, not published on the
Segment Start Date or a Segment Maturity Date, the value of the Index will be
determined as of the end of the most recent preceding business day for which
the Index value is published.
INDEX-LINKED RATE OF RETURN -- The rate of return we apply to calculate the
Index-Linked Return which is based on the Index Performance Rate adjusted to
reflect the Growth Cap Rate and protection against negative performance.
Therefore, if the performance of the Index is zero or positive, we will apply
that performance up to the Growth Cap Rate. If the performance of the Index is
negative, we will apply performance of zero unless the decline in the
performance of the Index is below -25% in which case negative performance in
excess of -25% will apply. Please see the chart under "Index-Linked Return" for
more information.
INDEX-LINKED RETURN -- The amount that is applied to the Segment Account Value
on the Segment Maturity Date that is equal to that Segment's Index-Linked Rate
of Return multiplied by the Segment Account Value on the Segment Maturity Date.
The Index-Linked
33
ABOUT THE MARKET STABILIZER OPTION(R) (APPLICABLE ONLY IF ALLOCATING AMOUNTS TO
THE MSO)
Return may be positive, negative or zero. In the event that the S&P 500 Price
Return index sustains a 100% loss, the maximum loss of principal would be 75%.
The Indexed-Linked Return is only applied to amounts that remain in a Segment
Account Value until the Segment Maturity Date. For example, a surrender of your
policy before Segment maturity will eliminate any Index-Linked Return and be
subject to an Early Distribution Adjustment.
INITIAL SEGMENT ACCOUNT -- The amount initially transferred to a Segment from
the MSO Holding Account on its Segment Start Date, net of:
(a)the Variable Index Benefit Charge (see "Charges" later in this section)
and
(b)the amount, if any, that may have been transferred from the MSO Holding
Account to the Unloaned GIO to cover the Charge Reserve Amount (see "Charge
Reserve Amount" later in this section). Such a transfer would be made from
the MSO Holding Account to cover the Charge Reserve Amount only (1) if you
have given us instructions to make such a transfer or (2) in the other
limited circumstances described under "Segments" later in this section.
MSO HOLDING ACCOUNT -- This is a portion of the EQ/Money Market variable
investment option that holds amounts designated by the policy owner for
investment in the MSO prior to any transfer into the next available new Segment.
SEGMENT -- The portion of your total investment in the MSO that is associated
with a specific Segment Start Date. You create a new Segment each time an
amount is transferred from the MSO Holding Account into a Segment Account.
SEGMENT ACCOUNT VALUE (ALSO REFERRED TO IN YOUR POLICY AS THE "SEGMENT
ACCOUNT") -- The amount of an Initial Segment Account subsequently reduced by
any monthly deductions, policy loans and unpaid loan interest, and
distributions from the policy that we deem necessary to continue to qualify the
policy as life insurance under applicable tax law, which are allocated to the
Segment. Any such reduction in the Segment Account Value prior to its Segment
Maturity Date will result in a corresponding Early Distribution Adjustment,
which will cause you to lose principal, and that loss could be substantial. The
Segment Account Value is used in determining policy account values, death
benefits, and the net amount at risk for monthly cost of insurance calculations
of the policy and the new base policy face amount associated with a requested
change in death benefit option.
For example, if you put $1,000 into the MSO Holding Account, $992.50 would go
into a Segment. This amount represents the Initial Segment Account. The Segment
Account Value represents the value in the Segment which gets reduced by any
deductions allocated to the Segment, with corresponding EDAs, through the
course of the Segment Term. The Segment Distribution Value represents what you
would receive upon surrendering the policy and reflects the EDA upon surrender.
SEGMENT DISTRIBUTION VALUE (ALSO REFERRED TO IN YOUR POLICY AS THE "SEGMENT
VALUE") -- This is the Segment Account Value minus the Early Distribution
Adjustment that would apply on a full surrender of that Segment at any time
prior to the Segment Maturity Date. Segment Distribution Values will be used in
determining policy value available to cover monthly deductions, proportionate
surrender charges for requested face amount reductions, and other
distributions; cash surrender values and maximum loan values subject to any
applicable base policy surrender charge. They will also be used in determining
whether any outstanding policy loan and accrued loan interest exceeds the
policy account value.
SEGMENT MATURITY GIO LIMITATION -- A specified percentage limitation on the
amount of your Segment Maturity Value that may be allocated to the guaranteed
interest option. AXA Equitable reserves the right to implement a specified
percentage limitation on the amount of your Segment Maturity Value that may be
allocated to the guaranteed interest option. The specified percentage
limitation can be changed at any time, but it will never be less than 5% of
your Segment Maturity Value. We will transfer any portion of your Segment
Maturity Value that is allocated to the guaranteed interest option in excess of
the Segment Maturity GIO Limitation to the EQ/Money Market variable investment
option unless we receive your instructions prior to the Segment Maturity Date
that the Segment Maturity Value should be allocated to the MSO Holding Account
or to any other available variable investment option. Please see "Appendix III:
Policy variations" later in this prospectus for more information.
SEGMENT MATURITY DATE -- The date on which a Segment Term is completed and the
Index-Linked Return for that Segment is applied to a Segment Account Value.
SEGMENT MATURITY VALUE -- This is the Segment Account Value adjusted by the
Index-Linked Return for that Segment.
SEGMENT START DATE -- The Segment Start Date is the day on which a Segment is
created.
SEGMENT TERM -- The duration of a Segment. The Segment Term for each Segment
begins on its Segment Start Date and ends on its Segment Maturity Date one year
later. We are currently only offering Segment Terms of approximately one year.
We may offer different durations in the future.
DESCRIPTION OF THE MARKET STABILIZER OPTION(R)
MSO HOLDING ACCOUNT
The amount of each transfer or loan repayment you make to the MSO, and the
balance of each premium payment you make to the MSO after any premium charge
under your base policy has been deducted, will first be placed in the MSO
Holding Account. The MSO Holding Account is a portion of the regular EQ/Money
Market variable investment option that will hold amounts allocated to the MSO
until the next available Segment Start Date. The MSO Holding Account has the
same rate of return as the EQ/Money Market variable investment option. We
currently plan on offering new Segments on a monthly basis but reserve the
right to offer them less frequently or to stop offering them or to suspend
offering them temporarily.
Before any account value is transferred into a Segment, you can transfer
amounts from the MSO Holding Account into other investment options available
under your policy at any time subject to any transfer restrictions within your
policy. You can transfer into and out of the MSO Holding Account at any time up
to and including the Segment Start Date provided your transfer request is
received at our Administrative Office by such date. For example, you can
transfer policy account value into the MSO Holding Account on the 3rd Friday of
June. That policy account value would transfer into the Segment
34
ABOUT THE MARKET STABILIZER OPTION(R) (APPLICABLE ONLY IF ALLOCATING AMOUNTS TO
THE MSO)
starting on that date, subject to the conditions mentioned earlier. You can
also transfer policy account value out of the MSO Holding Account before the
end of the business day on the Segment Start Date and that account value would
not be swept into the Segment starting on that date. Please refer to the "How
to reach us" section under "Who is AXA Equitable?" earlier in this prospectus
for more information regarding contacting us and communicating your
instructions. We also have specific forms that we recommend you use for
electing the MSO and any MSO transactions.
On the Segment Start Date, account value in the MSO Holding Account, excluding
charges and any account value transferred to cover the Charge Reserve Amount,
will be transferred into a Segment if all requirements and limitations are met
that are discussed under "Segments" immediately below.
SEGMENTS
Each Segment will have a Segment Start Date of the 3rd Friday of each calendar
month and will have a Segment Maturity Date on the 3rd Friday of the same
calendar month in the succeeding calendar year.
In order for any amount to be transferred from the MSO Holding Account into a
new Segment on a Segment Start Date, all of the following conditions must be
met on that date:
(1)The Growth Cap Rate for that Segment must be equal to or greater than your
minimum Growth Cap Rate (Please see "Growth Cap Rate" later in this section).
(2)There must be sufficient account value available within the Unloaned GIO and
the variable investment options including the MSO Holding Account to cover
the Charge Reserve Amount as determined by us on such date (Please see
"Charge Reserve Amount" later in this section).
(3)The Growth Cap Rate must be greater than the sum of the annual interest rate
we are currently crediting on the Unloaned GIO ("A"), the Variable Index
Benefit Charge rate ("B"), the annualized monthly Variable Index Segment
Account Charge rate ("C") and the current annualized monthly mortality and
expense risk charge rate ("D"). The Growth Cap Rate must be greater than
(A+B+C+D). This is to ensure that the highest possible rate of return that
could be received in a Segment after these charges (B+C+D) have been
considered exceeds the interest crediting rate currently being offered in
the Unloaned GIO.
(4)It must not be necessary, as determined by us on that date, for us to make a
distribution from the policy during the Segment Term in order for the policy
to continue to qualify as life insurance under applicable tax law.
(5)The total amount allocated to your Segments under your policy on that date
must be less than any limit we may have established.
If there is sufficient policy account value in the Unloaned GIO to cover the
Charge Reserve Amount, then no transfers from other investment options to the
Unloaned GIO will need to be made. If there is insufficient value in the
Unloaned GIO to cover the Charge Reserve Amount and we do not receive
instructions from you specifying the investment options from which we should
transfer the account value to the Unloaned GIO to meet Charge Reserve Amount
requirements at the Segment Start Date, or the transfer instructions are not
possible due to insufficient funds, then the required amount will be
transferred proportionately from your variable investment options including the
MSO Holding Account.
If after any transfers there would be an insufficient amount in the Unloaned
GIO to cover the Charge Reserve Amount or the Growth Cap Rate for the next
available Segment does not qualify per your minimum Growth Cap Rate
instructions and the conditions listed above, then your amount in the MSO
Holding Account will remain there until we receive further instruction from
you. We will mail you a notice informing you that your account value did or did
not transfer from the MSO Holding Account into a Segment. These notices are
mailed on or about the next business day after the applicable Segment Start
Date.
SEGMENT MATURITY
Near the end of the Segment Term, we will notify you between 15 and 45 days
before the Segment Maturity Date that a Segment is about to mature. At that
time, you may choose to have all or a part of:
(a)the Segment Maturity Value rolled over into the MSO Holding Account
(b)the Segment Maturity Value transferred to the variable investment options
available under your policy
(c)the Segment Maturity Value transferred to the Unloaned GIO subject to any
Segment Maturity GIO Limitation that we may impose.
If we do not receive your transfer instructions before the Segment Maturity
Date, your Segment Maturity Value will automatically be rolled over into the
MSO Holding Account for investment in the next available Segment, subject to
the conditions listed under "Segments" above.
However, if we are not offering the MSO at that time, we will transfer the
Segment Maturity Value to the investment options available under your policy
per your instructions or to the EQ/Money Market investment option if no
instructions are received. If the Segment Maturity GIO Limitation is in effect,
then you may only allocate up to a specified percentage of your Segment
Maturity Value to the guaranteed interest option. That limitation will never be
less than 5% of your Segment Maturity Value. Any portion of the Segment
Maturity Value that is allocated to the guaranteed interest option in excess of
the Segment Maturity GIO Limitation will be allocated to the EQ/Money Market
variable investment option unless we receive your instructions prior to the
Segment Maturity Date that the Segment Maturity Value should be allocated to
any other available variable investment option. Please see "Right to
Discontinue and Limit Amounts Allocated to the MSO" and "Segment Maturity GIO
Limitation" for more information. Although under the policy we reserve the
right to apply a transfer charge up to $25 for each transfer among your
investment options, there will be no transfer charges for any of the transfers
discussed in this section. Please see "Appendix III: Policy variations" later
in this prospectus for more information.
GROWTH CAP RATE
By allocating your account value to the MSO, you can participate in the
performance of the Index up to the applicable Growth Cap Rate that we declare
on the Segment Start Date.
Please note that this means you will not know the Growth Cap Rate for a new
Segment until after the account value has been transferred from the MSO Holding
Account into the Segment and you are not allowed to transfer the account value
out of a Segment before the Segment Maturity Date. Please see "Transfers" below.
Each Segment is likely to have a different Growth Cap Rate. However, the Growth
Cap Rate will never be less than 6%.
35
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
Your protection against negative performance for a Segment held until its
Segment Maturity Date is currently -25% ("Downside Protection" also referred to
in your policy as the "Segment Loss Absorption Threshold Rate"). We reserve the
right, for new Segments, to increase your Downside Protection against negative
performance. For example, if we were to adjust the Downside Protection for a
Segment to -100%, the Index-Linked Rate of Return for that Segment would not go
below 0%. Please note that any increase in the protection against negative
performance would likely result in a lower Growth Cap Rate than would otherwise
apply. We will provide notice between 15 and 45 days before any change in the
Downside Protection is effective. Any change would only apply to new Segments
started after the effective date of the change, which (coupled with the 15-45
day notice we will give) will afford you the opportunity to decline to
participate in any Segment that reflects a change in the Downside Protection.
THE GROWTH CAP RATE AND DOWNSIDE PROTECTION ARE SET AT THE COMPANY'S SOLE
DISCRETION. However, the Growth Cap Rate can never be less than 6% and we may
only increase your Downside Protection from the current -25%.
As part of your initial instructions in selecting the MSO, you will specify
what your minimum acceptable Growth Cap Rate is for a Segment. You may specify
a minimum Growth Cap Rate from 6% to 10%. If the Growth Cap Rate we set, on the
Segment Start Date, is below the minimum you specified then the account value
will not be transferred from the MSO Holding Account into that Segment. If you
do not specify a minimum Growth Cap Rate then your minimum Growth Cap Rate will
be set at 6%. In addition, for account value to transfer into a Segment from
the MSO Holding Account, the Growth Cap Rate must be greater than the sum of
the annual interest rate we are currently crediting on the Unloaned GIO ("A"),
the Variable Index Benefit Charge rate ("B"), the annualized monthly Variable
Index Segment Account Charge rate ("C") and the current annualized monthly
mortality and expense risk charge rate ("D"). The Growth Cap Rate must be
greater than (A+B+C+D).
For example, assume that the annual interest rate we are currently crediting on
the Unloaned GIO were 4%, the Variable Index Benefit Charge rate were 0.75%,
the annualized monthly Variable Index Segment Account charge rate were 0.65%
and the annualized monthly mortality and expense risk charge rate were 0.85%.
Based on those assumptions (which we provide only for illustrative purposes and
will not necessarily correspond to actual rates), because these numbers total
6.25%, no amounts would be transferred into any Segment unless we declare a
Growth Cap Rate that is higher than 6.25%. Please see "Index-Linked Return"
later in this section for more information.
As another example, you may specify a minimum Growth Cap Rate of 8%. If we set
the Growth Cap Rate at 8% or higher for a Segment then a transfer from the MSO
Holding Account will be made into that new Segment provided all other
requirements and conditions discussed in this section are met. If we set the
Growth Cap Rate below 8% then no transfer from the MSO Holding Account will be
made into that Segment. No transfer will be made until a Segment Growth Cap
Rate equal to or greater than 8% is set and all requirements are met or you
transfer account value out of the MSO Holding Account.
GROWTH CAP RATE AVAILABLE DURING INITIAL POLICY YEAR
If you allocate policy account value to any Segment that commences during your
first policy year, our current practice is to establish a Growth Cap Rate that
is at least 15%.
We may terminate or change this 15% initial year minimum Growth Cap Rate at any
time; but any such change or termination would apply to you only if your policy
is issued, after such modification or termination.
After this initial year 15% minimum Growth Cap Rate, the minimum Growth Cap
Rate will revert back to 6%.
INDEX-LINKED RETURN
We calculate the Index-Linked Return for a Segment by taking the Index-Linked
Rate of Return and multiplying it by the Segment Account Value on the Segment
Maturity Date. The Segment Account Value is net of the Variable Index Benefit
Charge described below as well as any monthly deductions, policy loans and
unpaid interest, distributions from the policy that we deem necessary to
continue to qualify the policy as life insurance under applicable tax law and
any corresponding Early Distribution Adjustments. The Segment Account Value
does not include the Charge Reserve Amount described later in this section.
The following table demonstrates the Index-Linked Rate of Return and the
Segment Maturity Value on the Segment Maturity Date based upon a hypothetical
range of returns for the S&P 500 Price Return index. This example assumes a 15%
Growth Cap Rate and a $1,000 investment in the MSO Segment.
---------------------------------------------------------
INDEX PERFORMANCE
RATE OF THE S&P 500 INDEX-LINKED RATE SEGMENT MATURITY
PRICE RETURN INDEX OF RETURN VALUE
---------------------------------------------------------
50% 15% $1,150
---------------------------------------------------------
25% 15% $1,150
---------------------------------------------------------
10% 10% $1,100
---------------------------------------------------------
0% 0% $1,000
---------------------------------------------------------
-25% 0% $1,000
---------------------------------------------------------
-50% -25% $750
---------------------------------------------------------
-75% -50% $500
---------------------------------------------------------
-100% -75% $250
---------------------------------------------------------
|
For instance, we may set the Growth Cap Rate at 15%. Therefore, if the Index
has gone up 20% over your Segment Term, you will receive a 15% credit to your
Segment Account Value on the Segment Maturity Date. If the Index had gone up by
13% from your Segment Start Date to your Segment Maturity Date then you would
receive a credit of 13% to your Segment Account Value on the Segment Maturity
Date.
If the Index had gone down 20% over the Segment Term then you would receive a
return of 0% to your Segment Account Value on the Segment Maturity Date.
If the Index had gone down by 30% by your Segment Maturity Date then your
Segment Account Value would be reduced by 5% on the Segment Maturity Date. The
Downside Protection feature of the MSO will absorb the negative performance of
the Index up to -25%.
The minimum Growth Cap Rate is 6%. However, account value will only transfer
into a new Segment from the MSO Holding Account if the Growth Cap Rate is equal
to or greater than your specified minimum Growth Cap Rate and meets the
conditions discussed earlier in the "Growth Cap Rate" section.
In those instances where the account value in the MSO Holding Account does not
transfer into a new Segment, the account value will
36
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
remain in the MSO Holding Account until the next available, qualifying Segment
unless you transfer the account value into the Unloaned GIO and/or other
investment option available under your policy subject to any conditions and
restrictions.
For instance, if we declare the Growth Cap Rate to be 6% and your specified
minimum Growth Cap Rate is 6% but we are currently crediting an annual interest
rate on the Unloaned GIO that is greater than or equal to 6% minus the sum of
the charges (B+C+D) discussed in the Growth Cap Rate section then your account
value will remain in the MSO Holding Account on the date the new Segment would
have started.
As indicated above, you must transfer account value out of the MSO Holding
Account into the Unloaned GIO and/or other investment options available under
your policy if you do not want to remain in the MSO Holding Account.
If we declare the Growth Cap Rate to be 6% and your specified minimum Growth
Cap Rate is 6% and if the sum of the charges (B+C+D) discussed in the "Growth
Cap Rate" section plus the annual interest rate on the Unloaned GIO are less
than 6% and all requirements are met then the net amount of the account value
in the MSO Holding Account will transfer into a new Segment.
If you specified a minimum Growth Cap Rate of 10% in the above examples then
account value would not transfer into a new Segment from the MSO Holding
Account because the Growth Cap Rate did not meet your specified minimum Growth
Cap Rate.
The Index-Linked Return is only applied to amounts that remain in a Segment
until the Segment Maturity Date. For example, a surrender of your policy before
Segment maturity will eliminate any Index-Linked Return and be subject to a
Early Distribution Adjustment.
CHANGE IN INDEX
If the Index is discontinued or if the calculation of the Index is
substantially changed, we reserve the right to substitute an alternative index.
We also reserve the right to choose an alternative index at our discretion.
If we were to substitute an alternative index at our discretion, we would
provide notice 45 days before making that change. The new index would only
apply to new Segments. Any outstanding Segments would mature on their original
Segment Maturity Dates.
With an alternative index, the Downside Protection would remain the same or
greater. However, an alternative index may reduce the Growth Cap Rates we can
offer. We would attempt to choose a substitute index that has a similar
investment objective and risk profile to the S&P 500 Price Return index.
If the S&P 500 Price Return index were to be discontinued or substantially
changed, thereby affecting the Index-Linked Return of existing Segments, we
will mature the Segments based on the most recently available closing value of
the Index before it is discontinued or changed. Such maturity will be as of the
date of such most recently available closing value of the Index and we will use
that closing value to calculate the Index-linked Return through that date. We
would apply the full Index performance to that date subject to the full Growth
Cap Rate and Downside Protection. For example, if the Index was up 12% at the
time we matured the Segment and the Growth Cap Rate was 8%, we would credit an
8% return to your Segment Account Value. If the Index was down 30% at the time
we matured the Segment, we would credit a 5% negative return to your Segment
Account Value. We would provide notice about maturing the Segment, as soon as
practicable and ask for instructions on where to transfer your Segment Maturity
Value.
If we are still offering Segments at that time, you can request that the
Segment Maturity Value be invested in a new Segment, in which case we will hold
the Segment Maturity Value in the MSO Holding Account for investment in the
next available Segment subject to the same terms and conditions discussed above
under MSO Holding Account and Segments.
In the case of any of the types of early maturities discussed above, there
would be no transfer charges or EDA applied and you can allocate the Segment
Maturity Value to the investment options available under your policy. Please
see "Segment Maturity" earlier in this section for more information. If we
continued offering new Segments, then such a change in the Index may cause
lower Growth Cap Rates to be offered. However, we would still provide a minimum
Growth Cap Rate of 6% and minimum Downside Protection of -25%. We also reserve
the right to not offer new Segments. Please see "Right to Discontinue and Limit
Amounts Allocated to the MSO" later in this section.
CHARGES
There is a current percentage charge of 1.40% of any policy account value
allocated to each Segment. We reserve the right to increase or decrease the
charge although it will never exceed 2.40%. Of this percentage charge, 0.75%
will be deducted on the Segment Start Date from the amount being transferred
from the MSO Holding Account into the Segment as an up-front charge ("Variable
Index Benefit Charge"), with the remaining 0.65% annual charge (of the current
Segment Account Value) being deducted from the policy account on a monthly
basis during the Segment Term ("Variable Index Segment Account Charge").
--------------------------------------------------------------------------
CURRENT NON- GUARANTEED
MSO CHARGES GUARANTEED MAXIMUM
--------------------------------------------------------------------------
Variable Index Benefit Charge 0.75% 0.75%
--------------------------------------------------------------------------
Variable Index Segment Account Charge 0.65% 1.65%
--------------------------------------------------------------------------
Total 1.40% 2.40%
--------------------------------------------------------------------------
|
This fee table applies specifically to the MSO and should be read in
conjunction with the "Tables of the policy charges" under "Risk/ benefit
summary: charges and expenses you will pay" earlier in this prospectus and also
see "Loans" later in this section for information regarding the "spread" you
would pay on any policy loan.
The base policy's mortality and expense risk charge and current non-guaranteed
Customer Loyalty Credit will also be applicable to a Segment Account Value or
any amounts held in the MSO Holding Account. The mortality and expense risk
charge is part of the policy monthly charges. Please see "How we deduct policy
monthly charges during a Segment Term" for more information. The Customer
Loyalty Credit offsets some of the monthly charges.
If a Segment is terminated prior to maturity by policy surrender, or reduced
prior to maturity by monthly deductions (if other funds are insufficient) or by
loans or a Guideline Premium Force-out as described below, we will refund a
proportionate amount of the Variable Index Benefit Charge corresponding to the
surrender or reduction and the time remaining until Segment Maturity. The
refund will be administered as part of the Early Distribution Adjustment
process as described above. This refund will increase your surrender value or
remaining Segment Account Value, as appropriate. Please see Appendix I later in
this prospectus for an example and further information.
37
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
CHARGE RESERVE AMOUNT
If you elect the Market Stabilizer Option(R), you are required to maintain a
minimum amount of policy account value in the Unloaned GIO to approximately
cover the estimated monthly charges for the policy, (including, but not limited
to, the MSO and any optional riders) for the Segment Term. This is the Charge
Reserve Amount.
The Charge Reserve Amount will be determined on each Segment Start Date as an
amount projected to be sufficient to cover all of the policy's monthly
deductions during the Segment Term, assuming at the time such calculation is
made that no interest or investment performance is credited to or charged
against the policy account and that no policy changes or additional premium
payments are made. The Charge Reserve Amount on other than a Segment Start Date
(or the effective date of a requested face amount increase -- please see
"Requested Face Amount Increases" below for more information) will be the
Charge Reserve Amount determined as of the latest Segment Start Date (or
effective date of a face amount increase) reduced by each subsequent monthly
deduction during the longest remaining Segment Term, although it will never be
less than zero. This means, for example, that if you are in a Segment (Segment
A) and then enter another Segment (Segment B) 6 months later, the Charge
Reserve Amount would be recalculated on the start date of Segment B. The Charge
Reserve Amount would be recalculated to cover all of the policy's monthly
deductions during the Segment Terms for both Segments A and B.
When you select the MSO, as part of your initial instructions, you will be
asked to specify the investment options from which we should transfer the
account value to the Unloaned GIO to meet Charge Reserve Amount requirements,
if necessary. No transfer restrictions apply to amounts that you wish to
transfer into the Unloaned GIO to meet the Charge Reserve Amount requirement.
If your values in the variable investment options including the MSO Holding
Account and the unloaned portion of our GIO are insufficient to cover the
Charge Reserve Amount, no new Segment will be established. Please see
"Segments" above for more information regarding the Charge Reserve Amount and
how amounts may be transferred to meet this requirement.
Please note that the Charge Reserve Amount may not be sufficient to cover
actual monthly deductions during the Segment Term. Although the Charge Reserve
Amount will be recalculated on each Segment Start Date, and the amount already
present in the Unloaned GIO will be supplemented through transfers from your
value in the variable investment options including the MSO Holding Account, if
necessary to meet this requirement, actual monthly deductions could vary up or
down during the Segment Term due to various factors including but not limited
to requested policy changes, additional premium payments, investment
performance, loans, policy partial withdrawals from other investment options
besides the MSO, and any changes we might make to current policy charges.
HOW WE DEDUCT POLICY MONTHLY CHARGES DURING A SEGMENT TERM
Under your base variable life insurance policy, monthly deductions are
allocated to the variable investment options and the Unloaned GIO according to
deduction allocation percentages specified by you or based on a proportionate
allocation should any of the individual investment option values be
insufficient.
However, if the Market Stabilizer Option(R) is elected, on the Segment Start
Date, deduction allocation percentages will be changed so that 100% of monthly
deductions will be taken from the Charge Reserve Amount and then any remaining
value in the Unloaned GIO, if the Charge Reserve Amount is depleted, during the
Segment Term. In addition, if the value in the Unloaned GIO is ever
insufficient to cover monthly deductions during the Segment Term, the base
policy's proportionate allocation procedure will be modified as follows:
1. The first step will be to take the remaining portion of the deductions
proportionately from the values in the variable investment options,
including any value in the MSO Holding Account but excluding any Segment
Account Values.
2. If the Unloaned GIO and variable investment options, including any value in
the MSO Holding Account, are insufficient to cover deductions in their
entirety, the remaining amount will be allocated to the individual Segments
proportionately, based on the current Segment Distribution Values.
3. Any portion of a monthly deduction allocated to an individual Segment will
generate a corresponding Early Distribution Adjustment of the Segment
Account Value.
The effect of those procedures is that account value will be taken out of a
Segment to pay a monthly deduction (and an EDA therefore applied) only if there
is no remaining account value in any other investment options, as listed in 1.
and 2. above.
In addition, your policy will lapse if your net policy account value is not
enough to pay your policy's monthly charges when due (unless one of the
available guarantees against termination is applicable). If you have amounts
allocated to MSO Segments, the Segment Distribution Value will be used in place
of the Segment Account Value in calculating the net policy account value.
These modifications will apply during any period in which a Segment exists and
has not yet reached its Segment Maturity Date.
EARLY DISTRIBUTION ADJUSTMENT
OVERVIEW
Before a Segment matures, if you surrender your policy, take a loan from a
Segment or if we should find it necessary to make deductions for monthly
charges or other distributions from a Segment, we will apply an Early
Distribution Adjustment.
The application of the EDA is based on your agreement (under the terms of the
MSO) to be exposed to the risk that, at the Segment Maturity Date, the Index
will have fallen by more than 25%. The EDA uses what we refer to as a Put
Option Factor to estimate the market value, at the time of an early
distribution, of the risk that you would suffer a loss if your Segment were
continued (without taking the early distribution) until its Segment Maturity
Date. By charging you with a deduction equal to that estimated value, the EDA
provides a treatment for an early distribution that is designed to be
consistent with how distributions at the end of a Segment are treated when the
Index has declined over the course of that Segment.
In the event of an early distribution, even if the Index has experienced
positive performance since the Segment Start Date, the EDA will cause you to
lose principal through the application of the Put Option Factor and that loss
may be substantial. That is because there is always some risk that the Index
would have declined by the Segment Maturity Date such that you would suffer a
loss if the Segment were
38
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
continued (without taking any early distribution) until that time. However, the
other component of the EDA is the proportionate refund of the Variable Index
Benefit Charge (discussed below under "Important Considerations") which is a
positive adjustment to you. As a result, the overall impact of the EDA is to
reduce your Segment Account Value and your other policy values except in the
limited circumstances where the proportionate refund is greater than your loss
from the Put Option Factor.
We determine the EDA and the Put Option Factor by formulas that are described
below under "ADDITIONAL DETAIL ."
IMPORTANT CONSIDERATIONS
When any surrender, loan, charge deduction or other distribution is made from a
Segment before its Segment Maturity Date:
1. YOU WILL FORFEIT ANY POSITIVE INDEX PERFORMANCE WITH RESPECT TO THESE
AMOUNTS. INSTEAD, ANY OF THESE PRE-SEGMENT MATURITY DATE DISTRIBUTIONS WILL
CAUSE AN EDA TO BE APPLIED THAT WILL USUALLY RESULT IN A REDUCTION IN YOUR
VALUES. THEREFORE, YOU SHOULD GIVE CAREFUL CONSIDERATION BEFORE TAKING ANY
SUCH EARLY LOAN OR SURRENDER, OR ALLOWING THE VALUE IN YOUR OTHER INVESTMENT
OPTIONS TO FALL SO LOW THAT WE MUST MAKE ANY MONTHLY DEDUCTION FROM A
SEGMENT; AND
2. The EDA will be applied, which means that:
a. IF THE INDEX HAS FALLEN MORE THAN 25% SINCE THE SEGMENT START DATE, the
EDA would generally have the effect of charging you for (i) the full
amount of that loss below 25%, plus (ii) an additional amount for the
risk that the Index might decline further by the Segment Maturity Date.
(Please see example III in Appendix I for further information.)
b. IF THE INDEX HAS FALLEN SINCE THE SEGMENT START DATE, BUT BY LESS THAN
25%, the EDA would charge you for the risk that, by the Segment Maturity
Date, the index might have declined further to a point more than 25%
below what it was at the Segment Start Date. (Please see example I in
Appendix I for further information.) This charge would generally be less
than the amount by which the Index had fallen from the Segment Start Date
through the date we apply the EDA. It also would generally be less than
it would be under the circumstances in 2a. above.
c. IF THE INDEX HAS RISEN SINCE THE SEGMENT START DATE, the EDA would not
credit you with any of such favorable investment performance. Instead,
the EDA would charge you for the risk that, by the Segment Maturity Date,
the index might have declined to a point more than 25% below what it was
at the Segment Start Date. (Please see examples II and IV in Appendix I
for further information.) This charge would generally be less than it
would be under the circumstances in 2a. and 2b. above.
In addition to the consequences discussed in 2. above, the EDA also has the
effect of pro rating the Variable Index Benefit Charge. As discussed further
below, this means that you in effect would receive a proportionate refund of
this charge for the portion of the Segment Term that follows the early
surrender, loan, policy distribution, or charge deduction that caused us to
apply the EDA. In limited circumstances, this refund may cause the total EDA to
be positive.
For the reasons discussed above, the Early Distribution Adjustment to the
Segment Account Value will usually reduce the amount you would receive when you
surrender your policy prior to a Segment Maturity Date. For loans and charge
deductions, the Early Distribution Adjustment would usually further reduce the
account value remaining in the Segment Account Value and therefore decrease the
Segment Maturity Value.
ADDITIONAL DETAIL
For purposes of determining the Segment Distribution Value prior to a Segment
Maturity Date, the EDA is:
(a)the Put Option Factor multiplied by the Segment Account Value
-minus-
(b)a pro rata portion of the 0.75% Variable Index Benefit Charge attributable
to the Segment Account Value. (Please see "Charges" earlier in this section
for an explanation of this charge.)
The Put Option Factor multiplied by the Segment Account Value represents, at
any time during the Segment Term, the estimated market value of your potential
exposure to negative S&P 500 Price Return index performance that is worse than
-25%. The Put Option Factor, on any date, represents the estimated value on
that date of a hypothetical "put option" (as described below) on the Index
having a notional value equal to $1 and strike price at Segment Maturity equal
to $0.75 ($1 plus the Downside Protection which is currently -25%). The strike
price of the option ($0.75) is the difference between a 100% loss in the S&P
500 Price Return index at Segment Maturity and the 25% loss at Segment Maturity
that would be absorbed by the Downside Protection feature of the MSO (please
see "Growth Cap Rate" earlier in this section for an explanation of the
Downside Protection.) In a put option on an index, the seller will pay the
buyer, at the maturity of the option, the difference between the strike price
-- which was set at issue -- and the underlying index closing price, in the
event that the closing price is below the strike price. Prior to the maturity
of the put option, its value generally will have an inverse relationship with
the index. The notional value can be described as the price of the underlying
index at inception of the contract. Using a notional value of $1 facilitates
computation of the percentage change in the Index and the put option factor.
AXA Equitable will utilize a fair market value methodology to determine the Put
Option Factor.
For this purpose, we use the Black Scholes formula for valuing a European put
option on the S&P 500 Price Return index, assuming a continuous dividend yield,
with inputs that are consistent with current market prices.
The inputs to the Black Scholes Model include:
(1)Implied Volatility of the Index -- This input varies with (i) how much time
remains until the Maturity Date of the Segment from which an early
distribution is being made, which is determined by using an expiration date
for the hypothetical put option that corresponds to that time remaining and
(ii) the relationship between the strike price of the hypothetical put
option and the level of the S&P 500 Price Return index at the time of the
early distribution. This relationship is referred to as the "moneyness" of
the hypothetical put option described above, and is calculated as the ratio
of the $0.75 strike price of that hypothetical put option to what the level
39
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
of the S&P 500 Price Return index would be at the time of the early
distribution if the Index had been $1 at the beginning of the Segment.
Direct market data for these inputs for any given early distribution are
generally not available, because put options on the Index that actually
trade in the market have specific maturity dates and moneyness values that
are unlikely to correspond precisely to the Maturity Date and moneyness of
the hypothetical put option that we use for purposes of calculating the EDA.
Accordingly, we use the following method to estimate the implied volatility
of the index. We receive daily quotes of implied volatility from banks using
the same Black Scholes model described above and based on the market prices
for certain S&P 500 Price Return put options. Specifically, implied
volatility quotes are obtained for put options with the closest maturities
above and below the actual time remaining in the Segment at the time of the
early distribution and, for each maturity, for those put options having the
closest moneyness value above and below the actual moneyness of the
hypothetical put option described above, given the level of the S&P 500
Price Return index at the time of the early distribution. In calculating the
Put Option Factor, we will derive a volatility input for your Segment's time
to maturity and strike price by linearly interpolating between the implied
volatility quotes that are based on the actual adjacent maturities and
moneyness values described above, as follows:
(a)We first determine the implied volatility of a put option that has the
same moneyness as the hypothetical put option but with the closest
available time to maturity shorter than your Segment's remaining time to
maturity. This volatility is derived by linearly interpolating between
the implied volatilities of put options having the moneyness values that
are above and below the moneyness value of the hypothetical put option.
(b)We then determine the implied volatility of a put option that has the
same moneyness as the hypothetical put option but with the closest
available time to maturity longer than your Segment's remaining time to
maturity. This volatility is derived by linearly interpolating between
the implied volatilities of put options having the moneyness values that
are above and below the moneyness value of the hypothetical put option.
(c)The volatility input for your Segment's time to maturity will then be
determined by linearly interpolating between the volatilities derived in
steps (a) and (b).
(2)LIBOR Rate -- Key duration LIBOR rates will be retrieved from a recognized
financial reporting vendor. LIBOR rates will be retrieved for maturities
adjacent to the actual time remaining in the Segment at the time of the
early distribution. We will use linear interpolation to derive the exact
remaining duration rate needed as the input.
(3)Index Dividend Yield -- On a daily basis we will get the projected annual
dividend yield across the entire Index. This value is a widely used
assumption and is readily available from recognized financial reporting
vendors.
In general, the Put Option Factor has an inverse relationship with the S&P 500
Price Return index. In addition to the factors discussed above, the Put Option
Factor is also influenced by time to Segment Maturity. We determine Put Option
Factors at the end of each business day. Generally, a business day is any day
the New York Stock Exchange is open for trading. If any inputs to the Black
Scholes formula are unavailable on a business day, we would use the value of
the input from the most recent preceding business day. The Put Option Factor
that applies to a transaction or valuation made on a business day will be the
Factor for that day. The Put Option Factor that applies to a transaction or
valuation made on a non-business day will be the Factor for the next business
day.
Appendix I at the end of this prospectus provides examples of how the Early
Distribution Adjustment is calculated.
TRANSFERS
There is no charge to transfer into and out of the MSO Holding Account and you
can make a transfer at any time to or from the investment options available
under your policy subject to any transfer restrictions within your policy. Any
restrictions applicable to transfers between the MSO Holding Account and such
investment options would be the same transfer restrictions applicable to
transfers between the investment options available under your policy. However,
once policy account value has been swept from the MSO Holding Account into a
Segment, transfers into or out of that Segment before its Segment Maturity Date
will not be permitted. Please note that while a Segment is in effect, before
the Segment Maturity Date, the amount available for transfers from the Unloaned
GIO will be limited to avoid reducing the Unloaned GIO below the remaining
Charge Reserve Amount.
Thus the amount available for transfers from the Unloaned GIO will not be
greater than any excess of the Unloaned GIO over the remaining Charge Reserve
Amount.
WITHDRAWALS
Once policy account value has been swept from the MSO Holding Account into a
Segment, you will not be allowed to withdraw the account value out of a Segment
before the Segment Maturity Date unless you surrender your policy. You may also
take a loan; please see "Loans" later in this section for more information. Any
account value taken out of a Segment before the Segment Maturity Date will
generate an Early Distribution Adjustment. Please note that while a Segment is
in effect, before the Segment Maturity Date, the amount available for
withdrawals from the Unloaned GIO will be limited to avoid reducing the
Unloaned GIO below the Charge Reserve Amount. Thus, if there is any policy
account value in a Segment, the amount which would otherwise be available to
you for a partial withdrawal of net cash surrender value will be reduced, by
the amount (if any) by which the sum of your Segment Distribution Values and
the Charge Reserve Amount exceeds the policy surrender charge.
If the policy owner does not indicate or if we cannot allocate the withdrawal
as requested due to insufficient funds, we will allocate the withdrawal
proportionately from your values in the Unloaned GIO (excluding the Charge
Reserve Amount) and your values in the variable investment options including
the MSO Holding Account.
CASH SURRENDER VALUE, NET CASH SURRENDER VALUE AND LOAN VALUE
If you have amounts allocated to MSO Segments, the Segment Distribution Values
will be used in place of the Segment Account Values in calculating the amount
of any cash surrender value, net cash surrender value and maximum amount
available for loans. This means an EDA would apply to those amounts. Please see
Appendix I for more information.
40
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
GUIDELINE PREMIUM FORCE-OUTS
For policies that use the Guideline Premium Test, a new Segment will not be
established or created if we determine, when we process your election, that a
distribution from the policy will be required to maintain its qualification as
life insurance under federal tax law at any time during the Segment Term.
However, during a Segment Term if a distribution becomes necessary under the
force-out rules of Section 7702 of the Internal Revenue Code, it will be
deducted proportionately from the values in the Unloaned GIO (excluding the
Charge Reserve Amount) and in any variable investment option, including any
value in the MSO Holding Account but excluding any Segment Account Values.
If the Unloaned GIO (excluding the Charge Reserve Amount) and variable
investment options, including any value in the MSO Holding Account, are
insufficient to cover the force-out in its entirety, any remaining amount
required to be forced out will be taken from the individual Segments
proportionately, based on the current Segment Distribution Values.
ANY PORTION OF A FORCE-OUT DISTRIBUTION TAKEN FROM AN INDIVIDUAL SEGMENT WILL
GENERATE A CORRESPONDING EARLY DISTRIBUTION ADJUSTMENT OF THE SEGMENT ACCOUNT
VALUE.
If the Unloaned GIO (excluding the remaining Charge Reserve Amount), together
with the variable investment options including any value in the MSO Holding
Account, and the Segment Distribution Values, is still insufficient to cover
the force-out in its entirety, the remaining amount of the force-out will be
allocated to the Unloaned GIO and reduce or eliminate any remaining Charge
Reserve Amount under the Unloaned GIO.
LOANS
You may specify how your loan is to be allocated among the MSO, the variable
investment options and the Unloaned GIO. Any portion of a requested loan
allocated to the MSO will be redeemed from the individual Segments and the MSO
Holding Account proportionately, based on the value of the MSO Holding Account
and the current Segment Distribution Values of each Segment. Any portion
allocated to an individual Segment will generate a corresponding Early
Distribution Adjustment of the Segment Account Value and be subject to a higher
guaranteed maximum loan spread (2% for policies with a contract state of New
York and Oregon and 5% for other policies).
If you do not specify or if we cannot allocate the loan according to your
specifications, we will allocate the loan proportionately from your values in
the Unloaned GIO (excluding the Charge Reserve Amount) and your values in the
variable investment options including the MSO Holding Account.
If the Unloaned GIO (excluding the remaining amount of the Charge Reserve
Amount), together with the variable investment options including any value in
the MSO Holding Account, are insufficient to cover the loan in its entirety,
the remaining amount of the loan will be allocated to the individual Segments
proportionately, based on current Segment Distribution Values.
ANY PORTION OF A LOAN ALLOCATED TO AN INDIVIDUAL SEGMENT WILL GENERATE A
CORRESPONDING EARLY DISTRIBUTION ADJUSTMENT OF THE SEGMENT ACCOUNT VALUE AND BE
SUBJECT TO A HIGHER GUARANTEED MAXIMUM LOAN SPREAD.
If the Unloaned GIO (excluding the remaining amount of the Charge Reserve
Amount), together with the variable investment options including any value in
the MSO Holding Account and the Segment Distribution Values, are still
insufficient to cover the loan in its entirety, the remaining amount of the
loan will be allocated to the Unloaned GIO and will reduce or eliminate the
remaining Charge Reserve Amount.
Loan interest is due on each policy anniversary. If the interest is not paid
when due, it will be added to your outstanding loan and allocated on the same
basis as monthly deductions. See "How we deduct policy monthly charges during a
Segment Term."
Whether or not any Segment is in effect and has not yet reached its Segment
Maturity Date, loan repayments will first reduce any loaned amounts that are
subject to the higher maximum loan interest spread. Loan repayments will first
be used to restore any amounts that, before being designated as loan
collateral, had been in the Unloaned GIO. Any portion of an additional loan
repayment allocated to the MSO at the policy owner's direction (or according to
premium allocation percentages) will be transferred to the MSO Holding Account
to await the next available Segment Start Date and will be subject to the same
conditions described earlier in this section.
Please see "Borrowing from your policy" under "Accessing your money" later in
this prospectus for information regarding additional policy loan provisions.
PAID UP DEATH BENEFIT GUARANTEE AND THE NO LAPSE GUARANTEES
Please note that the MSO is not available while the paid up death benefit
guarantee is in effect. The MSO is also not available if you elect the Enhanced
No Lapse Guarantee Rider.
REQUESTED FACE AMOUNT INCREASES
Please also see "You can increase or decrease your insurance coverage" under
Risks/benefits summary: Policy features, benefits and risks earlier in this
prospectus for conditions that will also apply for a requested face amount
increase.
If you wish to make a face amount increase during a Segment Term, the MSO
requires that a minimum amount of policy account value be available to be
transferred into the Unloaned GIO (if not already present in the Unloaned GIO),
and that the balance after deduction of monthly charges remain there during the
longest remaining Segment Term subject to any loans as described above. This
minimum amount will be any amount necessary to supplement the existing Charge
Reserve Amount so as to be projected to be sufficient to cover all monthly
deductions during the longest remaining Segment Term. Such amount will be
determined assuming at the time such calculation is made that no interest or
investment performance is credited to or charged against the policy account
value, and that no further policy changes or additional premium payments are
made.
Any necessary transfers to supplement the amount already present in the
Unloaned GIO in order to meet this minimum requirement will take effect on the
effective date of the face amount increase. There will be no charge for this
transfer. Any transfer from the variable investment options including the MSO
Holding Account will be made in accordance with your directions. Your transfer
instructions will be requested as part of the process for requesting the face
amount increase. If the requested allocation is not possible due to insufficient
41
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
funds, the required amount will be transferred proportionately from the
variable investment options, as well as the MSO Holding Account. If such
transfers are not possible due to insufficient funds, your requested face
amount increase will be declined.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
Please also see "Your right to cancel within a certain number of days" under
"More information about policy features and benefits" later in this prospectus
for more information regarding your right to cancel your policy within a
certain number of days. However, the provisions in that section that address
when amounts will be allocated to the investment options do not apply to
amounts allocated to the MSO.
In those states that require us to return your premium without adjustment for
investment performance within a certain number of days, we will initially put
all amounts which you have allocated to the MSO into our EQ/Money Market
investment option. In this case, on the first business day following the later
of the twentieth day after your policy is issued or the Investment Start Date
(30th day in most states if your policy is issued as the result of a
replacement, 60th day in NY), we will reallocate those amounts to the MSO
Holding Account where they will remain until the next available Segment Start
Date, at which time such amounts will be transferred to a new Segment of the
MSO subject to meeting the conditions described in this section. However, if we
have not received all necessary requirements for your policy as of the day your
policy is issued, we will reallocate those amounts to the MSO Holding Account
on the 20th day (longer if your policy is issued as the result of a
replacement) following the date we receive all necessary requirements to put
your policy in force at our Administrative Office. Your financial professional
can provide further information on what requirements may apply to your policy.
In all other states, any amounts allocated to the MSO will first be allocated
to the MSO Holding Account where they will remain for 20 days (unless the
policy is issued as the result of a replacement, in which case amounts in the
MSO Holding Account will remain there for 30 days (45 days in PA)). Thereafter,
such amounts will be transferred to a new Segment of the MSO on the next
available Segment Start Date, subject to meeting the conditions described in
this prospectus.
SEGMENT MATURITY GIO LIMITATION
Upon advance notification, we reserve the right to limit the amount of your
Segment Maturity Value that may be allocated to the guaranteed interest option.
However, that limitation will never be less than 5% of your Segment Maturity
Value. We will transfer any portion of your Segment Maturity Value that is
allocated to the guaranteed interest option in excess of the Segment Maturity
GIO Limitation to the EQ/Money Market variable investment option unless we
receive your instructions prior to the Segment Maturity Date that the Segment
Maturity Value should be allocated to the MSO Holding Account or to any other
available variable investment option. Please see "Appendix III: Policy
variations" later in this prospectus for more information.
RIGHT TO DISCONTINUE AND LIMIT AMOUNTS ALLOCATED TO THE MSO
We reserve the right to restrict or terminate future allocations to the MSO at
any time. If this right were ever to be exercised by us, all Segments
outstanding as of the effective date of the restriction would be guaranteed to
continue uninterrupted until the Segment Maturity Date. As each such Segment
matured, the balance would be reallocated to the Unloaned GIO and/or variable
investment options per your instructions, or to the EQ/Money Market investment
option if no instructions are received. We may also temporarily suspend
offering Segments at any time and for any reason including emergency conditions
as determined by the Securities and Exchange Commission. We also reserve the
right to establish a maximum amount for any single policy that can be allocated
to the MSO.
42
ABOUT THE MARKET STABILIZER OPTION(R)
(APPLICABLE ONLY IF ALLOCATING AMOUNTS TO THE MSO)
6. Determining your policy's value
YOUR POLICY ACCOUNT VALUE
As set forth earlier in this prospectus, we deduct certain charges from each
premium payment you make. We credit the rest of each premium payment to your
"policy account value." You instruct us to allocate your policy account value
to one or more of the policy's investment options indicated on the front cover
of this prospectus.
Your policy account value is the total of (i) your amounts in our variable
investment options, (ii) your Segment Account Value(s) as described in "About
the Market Stabilizer Option(R)" earlier in this prospectus, (iii) your amounts
in our guaranteed interest option (other than in (iv)), and (iv) any amounts
that we are holding to secure policy loans that you have taken (including any
interest on those amounts which has not yet been allocated to the investment
options). See "Borrowing from your policy" later in this prospectus. Your "net
policy account value" is the total of (i), (ii) and (iii) above, plus any
interest credited on loaned amounts, minus any interest accrued on outstanding
loans and minus any "restricted" amounts that we hold in the guaranteed
interest option as a result of any payment received under a Living Benefits
Rider. (Your policy and other supplemental material may refer to the account
that holds the amounts in (iii) and (iv) above as our "Guaranteed Interest
Account.") Your policy account value is subject to certain charges discussed in
"Risk/benefit summary: Charges and expenses you will pay" earlier in this
prospectus.
YOUR POLICY ACCOUNT VALUE WILL BE CREDITED WITH THE SAME RETURNS AS ARE
ACHIEVED BY THE PORTFOLIOS THAT YOU SELECT AND INTEREST CREDITED ON AMOUNTS IN
THE GUARANTEED INTEREST OPTION, AND IS REDUCED BY THE AMOUNT OF CHARGES WE
DEDUCT UNDER THE POLICY.
YOUR POLICY'S VALUE IN OUR VARIABLE INVESTMENT OPTIONS. We invest the policy
account value that you have allocated to any variable investment option in
shares of the corresponding Portfolio. Your value in each variable investment
option is measured by "units."
The number of your units in any variable investment option does not change,
absent an event or transaction under your policy that involves moving assets
into or out of that option. Whenever any amount is withdrawn or otherwise
deducted from one of your policy's variable investment options, we "redeem"
(cancel) the number of units that has a value equal to that amount. This can
happen, for example, when all or a portion of monthly deductions and
transaction-based charges are allocated to that option, or when loans,
transfers, withdrawals and surrenders are made from that option. Similarly, you
"purchase" additional units having the same value as the amount of any premium
(after deduction of any premium charge), loan repayment, or transfer that you
allocate to that option.
The value of each unit will increase or decrease each business day, as though
you had invested in the corresponding Portfolio's shares directly (and
reinvested all dividends and distributions from the Portfolio in additional
Portfolio shares). On any day, your value in any variable investment option
equals the number of units credited to your policy under that option,
multiplied by that day's value for one such unit. The mortality and expense
risk charge mentioned earlier in this prospectus is calculated as a percentage
of the value you have in the variable investment options and the Segment
Account Values of the MSO, and deducted monthly from your policy account based
on your deduction allocations unless the Enhanced No Lapse Guarantee Rider or
the paid up death benefit guarantee is in effect. For more information on how
we allocate charges, see "How we allocate charges among your investment
options" earlier in this prospectus.
YOUR POLICY'S VALUE IN OUR GUARANTEED INTEREST OPTION. Your policy's value in
our guaranteed interest option includes: (i) any amounts that have been
allocated to that option, based on your request, and (ii) any "restricted"
amounts that we hold in that option as a result of your election to receive a
living benefit. See "Your option to receive a terminal illness living benefit
under the Living Benefits Rider," later in this prospectus. We credit all of
such amounts with interest at rates we declare from time to time. We guarantee
that these rates will not be less than a 2% effective annual rate. However, we
reserve the right to limit the percentage of your premium that may be allocated
to the guaranteed interest option, or to reject certain requests to transfer
amounts to the unloaned portion of your guaranteed interest option as described
in greater detail throughout this prospectus. We may also limit the percentage
of any additional loan repayments that may be allocated to the guaranteed
interest option after you have repaid any loaned amounts that were taken from
the guaranteed interest option. See "Guaranteed interest option" under
"Investment options within your policy" in "Risk/benefit summary: Policy
features, benefits and risks" earlier in this prospectus and "Appendix III:
Policy variations" later in this prospectus for more information on such
limitation amounts.
Amounts may be allocated to or removed from your policy's value in our
guaranteed interest option for the same purposes as described earlier in this
prospectus for the variable investment options. We credit your policy with a
number of dollars in that option that equals any amount that is being allocated
to it. Similarly, if amounts are being removed from your guaranteed interest
option for any reason, we reduce the amount you have credited to that option on
a dollar-for-dollar basis.
If the Enhanced No Lapse Guarantee Rider was elected at issue and is in effect,
we will not allow any amount of the policy account value to be transferred or
allocated to the guaranteed interest option. In addition, if you elect the paid
up death benefit guarantee, we will restrict the amount of the policy account
value that can be transferred or allocated to the guaranteed interest option.
YOUR POLICY'S VALUE IN THE MARKET STABILIZER OPTION(R). Your policy account
value that has been allocated to any Segment of the MSO will not fluctuate
daily with investment performance. Each Segment has a Segment Account that is
used in the calculation of your policy account values and represents the amount
to which the Index-Linked Rate of Return will be applied to on a Segment
Maturity Date to determine the Index Linked-Return. The Index-Linked Rate of
Return, not to exceed the applicable Growth Cap Rate, is not applied to any
Segment Account prior to its Segment Maturity Date. Only the amount in a
Segment Account is subject to the "downside protection" on the Segment Maturity
Date. Please see "About the Market Stabilizer Option(R)" earlier in this
prospectus for more detailed information.
43
DETERMINING YOUR POLICY'S VALUE
7. Transferring your money among our investment options
TRANSFERS YOU CAN MAKE
YOU CAN TRANSFER AMONG OUR VARIABLE INVESTMENT OPTIONS AND INTO OUR GUARANTEED
INTEREST OPTION. HOWEVER, CERTAIN RESTRICTIONS MAY APPLY.
After your policy's Allocation Date, you can transfer amounts from one
investment option to another subject to certain restrictions discussed below.
Currently, the total of all transfers you make on the same day must be at least
$500; except that you may transfer your entire balance in an investment option,
even if it is less than $500. We reserve the right to lower this $500 limit
upon written notice to you. We also reserve the right to restrict transfers
among variable investment options and transfers out of the guaranteed interest
option as described in your policy, including limitations on the number,
frequency, or dollar amount of transfers.
Certain transfer restrictions apply if the Enhanced No Lapse Guarantee Rider or
the paid up death benefit guarantee is in effect. For more information, see
"Paid up death benefit guarantee" and the "Enhanced No Lapse Guarantee Rider"
in "More information about policy features and benefits." If your policy is
placed on loan extension, we will transfer any remaining policy account value
in the variable investment options and the Segments in the MSO to the
guaranteed interest option. No transfers from the guaranteed interest option
are permitted thereafter.
Please see "Investment options within your policy" in "Risk/benefit summary:
Policy features, benefits and risks" for more information about your role in
managing your allocations.
RESTRICTIONS ON TRANSFERS INTO THE GUARANTEED INTEREST OPTION. Notwithstanding
the above, upon advance notification, AXA Equitable has the right to reject any
transfer you request from the variable investment options to the unloaned
portion of the guaranteed interest option if the transfer would result in the
unloaned portion of the guaranteed interest option exceeding a specified
percentage of the total unloaned policy account value. The specified percentage
limitation on requested transfers to the guaranteed interest option can be
changed at any time, but it will never be less than 5%. Please see "Appendix
III: Policy variations" later in this prospectus for more information.
After the first two policy years and if the attained age of the insured is less
than 65, we may limit transfers you can make into the unloaned GIO if the
current (non-guaranteed) interest crediting rate on the unloaned GIO is equal
to the guaranteed minimum interest crediting rate of 2% (annual rate). In this
instance, the maximum amount that may be transferred from the variable
investment options to the unloaned GIO in a policy year is the greater of:
(a) $500 and (b) 25% of the total amount in the variable investment options at
the beginning of the policy year. If this amount is exceeded in any policy year
during which the transfer limit becomes effective, additional transfers into
the unloaned GIO will not be permitted during that policy year while the limit
remains in effect.
Additionally, when the paid up death benefit guarantee is exercised, if the
Enhanced No-Lapse Rider is in effect or if there are any Segments of the MSO in
effect, restrictions and/or limitations may apply on transfers into the
guaranteed interest option. For more information, please see "About the Market
Stabilizer Option(R)" earlier in this prospectus and "More information about
policy features and benefits" later in this prospectus.
CURRENT UNRESTRICTED TRANSFERS OUT OF THE GUARANTEED INTEREST OPTION. We are
relaxing our policy rules so that, beginning on the business day after the
Allocation Date and thereafter, you may transfer any amount of unloaned policy
account value out of the guaranteed interest option to any other investment
option until further notice. If we decide to change our limitations on
transfers out of the guaranteed interest option, we will provide you with
notice of at least 30 days.
See the "How to make transfers" section below on how you can request a
transfer. In general, transfers take effect on the date the request is
received. However, any written, telephone, Internet or facsimile transaction
requests received after 4:00 p.m. (Eastern Time) take effect the next business
day.
Please note that the ability to make unresticted transfers from the guaranteed
interest option does not apply to any amounts that we are holding as collateral
for a policy loan or as "restricted" amounts as a result of your election to
receive a living benefit, if available under your policy. In addition, if you
elect to transfer account value to the Market Stabilizer Option(R) ("MSO"), if
available under your policy, there must be sufficient funds remaining in the
guaranteed interest option to cover the Charge Reserve Amount. Finally, there
may be a charge for making this transfer. Please see "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus for more
information about charges for this transfer.
If the policy is on loan extension, transfers out of the guaranteed interest
option are not permitted.
TRANSFERS UNDER THE MARKET STABILIZER OPTION(R) ("MSO"). Although, under the
policy, we reserve the right to apply a transfer charge up to $25 for each
transfer among your investment options, there is no charge to transfer into and
out of the MSO Holding Account and you can make a transfer at any time to or
from the investment options available under your policy subject to any transfer
restrictions within your policy. Any restrictions applicable to transfers
between the MSO Holding Account and such investment options would be the same
transfer restrictions applicable to transfers between the investment options
available under your policy. However, once policy account value has been swept
from the MSO Holding Account into a Segment, transfers into or out of that
Segment before its Segment Maturity Date will not be permitted. Please note
that while a Segment is in effect, before the Segment Maturity Date, the amount
available for transfers from the Unloaned GIO will be limited to avoid reducing
the Unloaned GIO below the remaining Charge Reserve Amount.
Thus the amount available for transfers from the Unloaned GIO will not be
greater than any excess of the Unloaned GIO over the remaining Charge Reserve
Amount.
DISRUPTIVE TRANSFER ACTIVITY. We reserve the right to limit access to the
services described below if we determine that you are engaged in a disruptive
transfer activity, such as "market timing" (see "Disruptive transfer activity"
in "More information about other matters").
44
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
HOW TO MAKE TRANSFERS
INTERNET TRANSFERS. Generally, you can make transfers over the Internet if you
are the owner of the policy. You may do this by visiting our axa.com or
us.axa.com (for those outside the U.S.) websites and registering for online
account access. This service may not always be available. The restrictions
relating to transfers are described below.
ONLINE TRANSFERS. You can make online transfers by following one of two
procedures:
. For individually owned policies for which you are the owner, by logging
onto our website, described under "By Internet" in "How to reach us"
earlier in this prospectus; or
. For corporation and trust owned policies, we require a special
authorization form to obtain access. The form is available on our website
www.axa.us.com or us.axa.com for those outside the U.S., or by contacting
our Administrative Office.
For more information, see "Telephone and Internet requests" later in this
prospectus. We allow only one request for transfers each day (although that
request can cover multiple transfers). If you are unable to reach us via our
website, you should send a written transfer request to our Administrative
Office.
TRANSFERS THROUGH OUR ADMINISTRATIVE OFFICE. You may submit a written request
for a transfer to our Administrative Office. We require a written request for
jointly owned policies.
OUR AUTOMATIC TRANSFER SERVICE
We offer an automatic transfer service. This service allows you to gradually
allocate amounts to the variable investment options by periodically
transferring approximately the same dollar amount to the variable investment
options you select. This will cause you to purchase more units if the unit's
value is low, and fewer units if the unit's value is high. Therefore, you may
achieve a lower average cost per unit over the long-term.
USING THE AUTOMATIC TRANSFER SERVICE DOES NOT GUARANTEE THAT YOU WILL EARN A
PROFIT OR BE PROTECTED AGAINST LOSSES.
Our automatic transfer service (also referred to as our "dollar cost averaging
service") enables you to make automatic monthly transfers from the EQ/Money
Market option to our other variable investment options and the MSO. You may
elect the automatic transfer service with your policy application or at any
later time (provided you are not using the asset rebalancing service described
below). At least $5,000 must be allocated to the EQ/Money Market option to
begin using the automatic transfer service. You can choose up to eight other
variable investment options to receive the automatic transfers, but each
transfer to each option must be at least $50.
This service terminates when the EQ/Money Market option is depleted. Also, this
service will automatically terminate if you elect the paid up death benefit
guarantee or your policy is placed on loan extension. You can also cancel the
automatic transfer service at any time by sending a written request to our
Administrative Office. You may not simultaneously participate in the asset
rebalancing service and the automatic transfer service.
We will not deduct a transfer charge for any transfer made in connection with
our automatic transfer service. This service is not available while the
Enhanced No Lapse Guarantee Rider is in effect.
OUR ASSET REBALANCING SERVICE
You may wish us to periodically redistribute the amounts you have in our
variable investment options so that the relative amount of your policy account
value in each variable option is restored to an asset allocation that you
select. You can accomplish this automatically through our asset rebalancing
service. The rebalancing may be at quarterly, semiannual, or annual intervals.
You may specify asset allocation percentages for all available variable
investment options (excluding the MSO Holding Account) up to a maximum of 50.
The allocation percentage you specify for each variable investment option
selected must be at least 2% (whole percentages only) of the total value you
hold under the variable investment options, and the sum of the percentages must
equal 100%. You may not simultaneously participate in the asset rebalancing
service and the automatic transfer service (discussed above).
You may request the asset rebalancing service in your policy application or at
any later time by completing our enrollment form. At any time, you may also
terminate the rebalancing program or make changes to your allocations under the
program. Once enrolled in the rebalancing service, it will remain in effect
until you instruct us in writing to terminate the service. Requesting an
investment option transfer while enrolled in our asset rebalancing service will
not automatically change your allocation instructions for rebalancing your
account value. This means that upon the next scheduled rebalancing, we will
transfer amounts among your investment options pursuant to the allocation
instructions previously on file for your rebalancing service. Changes to your
allocation instructions for the rebalancing service (or termination of your
enrollment in the service) must be in writing and sent to our Administrative
Office.
We will not deduct a transfer charge for any transfer made in connection with
our asset rebalancing service. Also, this service will automatically terminate
if you elect the paid up death benefit guarantee or your policy is placed on
loan extension. Certain investment options, such as the guaranteed interest
option, are not available investment options with the asset rebalancing
service. This service is not available while the Enhanced No Lapse Guarantee
Rider is in effect.
45
TRANSFERRING YOUR MONEY AMONG OUR INVESTMENT OPTIONS
8. Accessing your money
BORROWING FROM YOUR POLICY
You may borrow up to 90% of the cash surrender value, less any outstanding loan
and accrued loan interest before the policy year in which the insured reaches
age 75 (100% thereafter). In your policy, the cash surrender value is equal to
the difference between your policy account value and any surrender charges that
are in effect under your policy. However, the amount you can borrow will be
reduced by any amount that we hold on a "restricted" basis following your
receipt of a terminal illness living benefits payment, as well as by any other
loans (and accrued loan interest) you have outstanding and reduced for any
monthly payments under the Long-Term Care Services/SM/ Rider. See "More
information about policy features and benefits: Other benefits you can add by
rider: Long-Term Care Services/SM /Rider" later in this prospectus. See "Your
option to receive a terminal illness living benefit under the Living Benefits
Rider" below. The minimum loan amount generally is $500. Please also see
"Loans" under "About the Market Stabilizer Option(R)" earlier in this
prospectus should you borrow from values allocated to the MSO.
YOU CAN USE POLICY LOANS TO OBTAIN FUNDS FROM YOUR POLICY WITHOUT SURRENDER
CHARGES OR, IN MOST CASES, PAYING CURRENT INCOME TAXES. HOWEVER, THE BORROWED
AMOUNT IS NO LONGER CREDITED WITH THE INVESTMENT RESULTS OF ANY OF OUR
INVESTMENT OPTIONS UNDER THE POLICY.
When you take a policy loan, we remove an amount equal to the loan from one or
more of your investment options and hold it as collateral for the loan's
repayment. We hold this loan collateral under the same terms and conditions as
apply to amounts supporting our guaranteed interest option, with several
exceptions:
. you cannot make transfers or withdrawals of the collateral;
. we expect to credit different rates of interest to loan collateral than we
credit under our guaranteed interest option;
. we do not count the collateral when we compute our customer loyalty credit;
and
. the collateral is not available to pay policy charges.
When you request a loan, you should tell us how much of the loan collateral you
wish to have taken from any amounts you have in each of our investment options.
Please also see "Loans" under "About the Market Stabilizer Option(R)" earlier
in this prospectus should you borrow from values allocated to the MSO. Please
note that any portion of a loan allocated to an individual Segment will
generate a corresponding Early Distribution Adjustment of the Segment Account
Value and be subject to a higher guaranteed maximum loan spread.If you do not
give us directions (or if we are making the loan automatically to cover unpaid
loan interest), we will take the loan from your investment options in the same
proportion as we are taking monthly deductions for charges. If that is not
possible, we will take the loan from your investment options in proportion to
your value in each. If the Enhanced No Lapse Guarantee Rider or the paid up
death benefit guarantee is in effect and you do not give us directions or the
directions cannot be followed due to insufficient funds (or we are making the
loan automatically to cover unpaid loan interest), we will take the loan from
your investment options in proportion to your value in each.
LOAN INTEREST WE CHARGE. The interest we charge on a policy loan accrues daily
at an adjustable interest rate. We determine the rate at the beginning of each
year of your policy and that rate applies to all policy loans that are
outstanding at any time during the year. The maximum rate is the greater of
(a) 3% or (b) the "Monthly Average Corporate" yield published in Moody's
Corporate Bond Yield Averages for the month that ends two months before the
interest rate is set. (If that average is no longer published, we will use
another average, as the policy provides.) Currently, the loan interest rate is
3% for the first ten policy years and 2% thereafter. We will notify you of the
current loan interest rate when you apply for a loan and annually on the annual
report, and will notify you in advance of any rate increase.
Loan interest payments are due on each policy anniversary. If not paid when
due, we automatically add the interest as a new policy loan.
INTEREST THAT WE CREDIT ON LOAN COLLATERAL. Under our current rules, the annual
interest rate we credit on your loan collateral during any of your policy's
first ten years will be 1% less than the rate we are then charging you for
policy loan interest, and, beginning in the policy's 11th year, equal to the
loan interest rate. The elimination of the rate differential is not guaranteed,
however. Accordingly, we have discretion to increase the rate differential for
any period, including under policies that are already in force (and may have an
outstanding loan). We do guarantee that the annual rate of interest credited on
your loan collateral will never be less than 2% and that the differential will
not exceed 1%. Please also see "Loans" under "About the Market Stabilizer
Option(R)" earlier in this prospectus should you allocate your loan to the MSO.
Because Incentive Life Optimizer(R) II was first offered in 2010, the interest
rate differential has not yet been eliminated under any in-force policies.
We credit interest on your loan collateral daily. On each anniversary of your
policy (or when your policy loan is fully repaid) we transfer that interest to
your policy's investment options in the same proportions as if it were a
premium payment. If your policy is on loan extension, we transfer the interest
to the unloaned guaranteed interest option. If the paid up death benefit
guarantee is in effect, we transfer the interest to the investment options in
accordance with your allocation instructions on record.
EFFECTS OF A POLICY LOAN. If not repaid, the aggregate amount of the
outstanding loan and any accrued loan interest will reduce your cash surrender
value and your life insurance benefit that might otherwise be payable. We will
deduct any outstanding policy loan and accrued loan interest from your policy's
proceeds if you do not pay it back. Also, a loan can reduce the length of time
that your insurance remains in force, because the amount we set aside as loan
collateral cannot be used to pay charges as they become due. A loan can also
cause any paid up death benefit guarantee to terminate or
46
ACCESSING YOUR MONEY
may cause the Enhanced No Lapse Guarantee Rider or the no-lapse guarantee to
become unavailable.
A policy loan, repaid or not, has a permanent effect on your cash surrender
value. This results because the investment results of each investment option
apply only to the amounts remaining in such investment options. The longer the
loan is outstanding, the greater the effect on your cash surrender value is
likely to be.
Even if a loan is not taxable when made, it may later become taxable, for
example, upon termination or surrender. A policy loan can affect your policy
account value and death benefit, even if you have repaid the loan. See "Tax
information" below for a discussion of the tax consequences of a policy loan.
PAYING OFF YOUR LOAN. You can repay all or part of your loan at any time. We
normally assume that payments you send us are premium payments unless the
policy has lapsed and the payment is received during the 61-day grace period.
See "Policy 'lapse' and termination" in "The minimum amount of premiums you
must pay" under "Risk/ benefit summary: Policy features, benefits and risks"
for more information. Therefore, you must submit instructions with your payment
indicating that it is a loan repayment. If you send us more than all of the
loan principal and interest you owe, we will treat the excess as a premium
payment. Any payment received while the paid up death benefit guarantee is in
effect, the policy is on loan extension or you are receiving monthly payments
under the Long-Term Care Services/SM/ Rider will be applied as a loan repayment
(or refunded if it is in excess of the loan amount and outstanding interest).
When you send us a loan repayment, we will transfer an amount equal to such
repayment from your loan collateral back to the investment options under your
policy. First we will restore any amounts that, before being designated as loan
collateral, had been in the guaranteed interest option under your policy. We
will allocate any additional repayments among the investment options as you
instruct; or, if you don't instruct us, in the same proportion as if they were
premium payments. However, if the policy guaranteed interest option limitation
is in effect, we will limit you from allocating more than a specified
percentage of each additional repayment to the guaranteed interest option. Any
portion of the additional loan repayment in excess of the limitation amount
will be allocated to the variable investment options in proportion to any loan
repayment amounts for the variable investment options that you have specified
with that loan repayment. Otherwise, the excess will be allocated in proportion
to the premium allocation percentages for the variable investment options then
in effect. If you have not specified any loan repayment amounts for the
variable investment options and if there are no premium allocation percentages
for any variable investment options then in effect, any portion of the
additional loan repayment in excess of the limitation amount will be refunded
to you (except for any minimum amount necessary to keep the policy from
terminating, which will be allocated to the guaranteed interest option). The
specified percentage limitation on additional loan repayments allocated to the
guaranteed interest option can be changed at any time, but it will never be
less than 5%. Please see "Appendix III: Policy variations" later in this
prospectus for more information.
If you are to receive monthly benefit payments under the Long-Term Care
Services/SM/ Rider, a pro rata portion of the loan and accrued loan interest to
that date will be deducted from the monthly benefit payment as a loan
repayment. This will reduce the monthly payment otherwise payable to you under
the rider.
If the paid up death benefit guarantee is in effect, any loan repayment
allocated to the unloaned portion of the guaranteed interest option will be
limited to an amount so that the value in the unloaned portion of the
guaranteed interest option does not exceed 25% of the amount that you have in
your unloaned policy account value. Any portion of the loan repayment that we
cannot allocate to the guaranteed interest option will be allocated to the
variable investment options in proportion to any amounts that you specified for
that particular loan repayment. If you did not specify, we will allocate that
portion of the loan repayment in proportion to the paid up death benefit
guarantee allocation percentages for the variable investment options on record.
If the Enhanced No Lapse Guarantee Rider is in effect, any loan repayment will
be allocated to the EQ Strategic Allocation investment options in proportion to
any amounts that you specified for that particular loan repayment. If you did
not specify, we will allocate that portion of the loan repayment in proportion
to the Enhanced No Lapse Guarantee Rider premium allocation percentages for the
EQ Strategic Allocation investment options on record.
LOAN EXTENSION (FOR GUIDELINE PREMIUM TEST POLICIES ONLY)
Loan extension will protect against lapse of your policy due to an outstanding
policy loan in certain circumstances. There is no additional charge for the
loan extension feature. Your policy will automatically be placed on "loan
extension," if at the beginning of any policy month on or following the policy
anniversary nearest the insured person's 75th birthday, but not earlier than
the 20th policy anniversary, all of the following conditions apply:
. The net policy account value is not sufficient to cover the monthly
deductions then due;
. The amount of any outstanding policy loan and accrued loan interest is
greater than the larger of (a) the current base policy face amount, or
(b) the initial base policy face amount;
. You have selected Death Benefit Option A;
. You have not received a payment under either the Living Benefits Rider or
the Long-Term Care Services/SM/ Rider;
. The policy is not in a grace period; and
. No current or future distributions will be required to be paid from the
policy to maintain its qualification as "life insurance" under the Internal
Revenue Code.
When a policy goes on loan extension, all of the following will apply:
. We will collect monthly deductions due under the policy up to the amount in
the unloaned policy account value.
. Any policy account value that is invested in our variable investment
options will automatically be transferred to our guaranteed interest
option; and no transfers out of the guaranteed interest option may
thereafter be made into any of our variable investment options.
. While a Segment of the MSO is in effect, any Segment Distribution Values
will be transferred automatically to the Unloaned GIO and an Early
Distribution Adjustment will be applied, and no transfers out of the GIO
will be allowed into the MSO.
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ACCESSING YOUR MONEY
. Loan interest will continue to accrue and we will send you a notice of any
loan interest due on or about each policy anniversary. If the loan interest
is not paid when due, it will be added to the outstanding loan balance.
. No additional loans or partial withdrawals may be requested.
. No changes in face amount or death benefit option may be requested.
. No additional premium payments will be accepted. Any payments received will
be applied as loan repayments. If a loan repayment is made, the repaid
amount will become part of the unloaned guaranteed interest option. Any
payment in excess of the outstanding loan balance will be refunded to you.
. All additional benefit riders and endorsements will terminate, including
the Long-Term Care Services/SM/ Rider and the MSO.
. No future allocations or transfers to the investment options will be
accepted.
. The paid up death benefit guarantee if applicable, may not be elected.
. The policy will not thereafter lapse for any reason.
. If the policy is on loan extension, the policy guaranteed interest option
limitation will not apply.
On the policy anniversary when the insured attains age 75 and if such policy
has been in force for 20 years, and each month thereafter, we will determine
whether the policy is on loan extension. You will be sent a letter explaining
the transactions that are allowed and prohibited while a policy is on loan
extension. Once a policy is on loan extension, it will remain on loan extension
during the lifetime of the insured unless the policy is surrendered.
If your policy is on loan extension, the death benefit payable under the policy
is the greatest of (a), (b) and (c):
(a)The greater of the policy account value or the outstanding loan and accrued
loan interest on the date of the insured's death, multiplied by a percentage
shown in your policy;
(b)The outstanding loan and accrued loan interest, plus $10,000; or
(c)The base policy face amount on the date of death.
Other than as outlined above, all terms and conditions of your policy will
continue to apply as if your policy is not on loan extension. If your policy is
on loan extension, due to an absence of Internal Revenue Service guidance on
such features, there is some uncertainty as to how the tax law might be applied
in the future. For example, it is possible that in such circumstances, some or
the entire outstanding loan could be treated as a distribution from the policy.
MAKING WITHDRAWALS FROM YOUR POLICY
You may make a partial withdrawal of your net cash surrender value (defined
below) at any time after the first year of your policy and before the policy
anniversary nearest to the insured's attained age 121, provided the paid up
death benefit guarantee is not in effect, the policy is not on loan extension
and you are not receiving monthly benefit payments under the Long-Term Care
Services/SM/ Rider. The request must be for at least $500, however, and we have
discretion to decline any request. If you do not tell us from which investment
options you wish us to take the withdrawal, we will use the same allocation
that then applies for the monthly deductions we make for charges; and, if that
is not possible, we will take the withdrawal from all of your investment
options in proportion to your value in each. If you elected the Long-Term Care
Services/SM/ Rider and selected death benefit Option A, a partial withdrawal
will reduce the current long-term care specified amount by the amount of the
withdrawal, but not to less than the policy account value minus the withdrawal
amount. If you selected death benefit Option B, the current long-term care
specified amount will not be reduced. We will not deduct a charge for making a
partial withdrawal. Please see the "Early Distribution Adjustment" section
under "About the Market Stabilizer Option(R)" earlier in the prospectus for
more information about the effect of an EDA on a surrender of your policy.
YOU CAN WITHDRAW ALL OR PART OF YOUR POLICY'S NET CASH SURRENDER VALUE,
ALTHOUGH YOU MAY INCUR TAX CONSEQUENCES BY DOING SO.
EFFECT OF PARTIAL WITHDRAWALS ON INSURANCE COVERAGE. If the Option A death
benefit is in effect, a partial withdrawal results in a dollar-for-dollar
automatic reduction in the policy's face amount (and, hence, an equal reduction
in the Option A death benefit). We will not permit a partial withdrawal that
would reduce the face amount below the minimum stated in your policy, or that
would cause the policy to no longer be treated as life insurance for federal
income tax purposes.
If death benefit Option B is in effect, a partial withdrawal reduces the death
benefit on a dollar for dollar basis, but does not affect the face amount.
The result is different, however, during any time when the alternative death
benefit (discussed later in this prospectus) would be higher than the Option A
or B death benefit you have selected. In that case, a partial withdrawal will
cause the death benefit to decrease by more than the amount of the withdrawal.
A partial withdrawal reduces the amount of your premium payments that counts
toward maintaining the no-lapse guarantee and the Enhanced No Lapse Guarantee
Rider as well. A partial withdrawal may increase the chance that your policy
could lapse because of insufficient value to pay policy charges as they fall
due or failure to pass the guarantee premium test for the no-lapse guarantee.
You should refer to "Tax information" below, for information about possible tax
consequences of partial withdrawals and any associated reduction in policy
benefits. Also, partial withdrawals are not permitted while the paid up death
benefit guarantee is in effect. Please see "Paid up death benefit guarantee" in
"More information about policy features and benefits."
SURRENDERING YOUR POLICY FOR ITS NET CASH SURRENDER VALUE
Upon written request satisfactory to us, you can surrender (give us back) your
policy for its "net cash surrender value" at any time. The net cash surrender
value equals your policy account value, minus any outstanding loan and unpaid
loan interest, minus any amount of your policy account value that is
"restricted" as a result of previously distributed terminal illness living
benefits, and further reduced for any monthly benefit payments under the
Long-Term Care Services/SM/ Rider,
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ACCESSING YOUR MONEY
and minus any surrender charge that then remains applicable. If you have any
policy account value in the MSO, the Segment Distribution Value and not the
Segment Account Value will be used to calculate your policy account value for
the purpose of determining your net cash surrender value. Please see the "Early
Distribution Adjustment" section under "About the Market Stabilizer Option(R)"
earlier in the prospectus for more information about the effect of an EDA on a
surrender of your policy. The surrender charge is described in "Charges and
expenses you will pay" earlier in this prospectus.
Please refer to "Tax information" below for the possible tax consequences of
surrendering your policy.
YOUR OPTION TO RECEIVE A TERMINAL ILLNESS LIVING BENEFIT UNDER THE LIVING
BENEFITS RIDER
Subject to our insurance underwriting guidelines and availability in your
state, your policy will automatically include our Living Benefits Rider if you
apply for a face amount of at least $100,000 unless it is issued as a result of
an Option To Purchase Additional Insurance election or a conversion from a term
life policy or term rider. This feature enables you to receive a portion
(generally the lesser of 75% or $500,000) of the policy's death benefit
(excluding death benefits payable under certain other policy riders), if the
insured person has a terminal illness (as defined in the rider). The maximum
aggregate amount of payments that will be paid under this Living Benefits Rider
for all policies issued by AXA Equitable or an affiliate company on the life of
the same insured person is $500,000. We make no additional charge for the
rider, but we will deduct a one-time administrative charge of up to $250 from
any living benefit we pay.
If you tell us that you do not wish to have the Living Benefits Rider added at
issue, but you later ask to add it, there will be a $100 administrative charge.
Also, we will need to evaluate the insurance risk at that time, and we may
decline to issue the rider.
If you receive a living benefit on account of terminal illness, the Long-Term
Care Services/SM/ Rider for chronic illness benefits, if elected, and before
continuation of coverage under any Nonforfeiture Benefit, will terminate and no
further benefits will be payable under the Long-Term Care Services/SM/ Rider.
Long-Term Care Services/SM/ Rider charges will also stop. In addition, once you
receive a living benefit, you cannot elect the paid up death benefit guarantee
and your policy cannot be placed on loan extension. We will deduct the amount
of any living benefit we have paid, plus interest (as specified in the rider),
from the death benefit proceeds that become payable under the policy if and
when the insured person dies. (In your policy we refer to this as a "lien" we
establish against your policy.)
When we pay a living benefit, we automatically transfer a pro rata portion of
your policy's net cash surrender value to the policy's guaranteed interest
option regardless of any policy guaranteed interest option limitation in
effect. This amount, together with the interest we charge thereon, will be
"restricted"-- that is, it will not be available for any loans, transfers or
partial withdrawals that you may wish to make. In addition, it may not be used
to satisfy the charges we deduct from your policy's value. We also will deduct
these restricted amounts from any subsequent surrender proceeds that we pay.
Please see "Appendix III: Policy variations" later in this prospectus for more
information.
The receipt of a living benefits payment may qualify for exclusion from income
tax. See "Tax information" below. Receipt of a living benefits payment may
affect your eligibility for certain government benefits or entitlements.
YOU CAN ARRANGE TO RECEIVE A "LIVING BENEFIT" IF THE INSURED PERSON BECOMES
TERMINALLY ILL.
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ACCESSING YOUR MONEY
9. Tax information
This discussion is based on current federal income tax law and interpretations.
It assumes that the policy owner is a natural person who is a U.S. citizen and
resident and has an insurable interest in the insured. The tax effects on
corporate taxpayers, non-U.S. residents or non-U.S. citizens may be different.
This discussion is general in nature, and should not be considered tax advice,
for which you should consult a qualified tax advisor.
BASIC INCOME TAX TREATMENT FOR YOU AND YOUR BENEFICIARY
An Incentive Life Optimizer(R) II policy will be treated as "life insurance"
for federal income tax purposes (a) if it meets the definition of life
insurance under Section 7702 of the Internal Revenue Code (the "Code") and
(b) as long as the investments made by the underlying Portfolios satisfy
certain investment diversification requirements under Section 817(h) of the
Code. The following discussion assumes that the policies meet these
requirements and, therefore, that generally:
. the death benefit received by the beneficiary under your policy will not be
subject to federal income tax; and
. increases in your policy account value as a result of interest or
investment experience will not be subject to federal income tax, unless and
until there is a distribution from your policy, such as a surrender, a
partial withdrawal, loan or a payment to you.
The IRS, however, could disagree with our position such that certain tax
consequences could be other than as described. If it is subsequently determined
that a policy does not satisfy the applicable requirements, we may take
appropriate steps to bring the policy into compliance with such requirements
and we reserve the right to restrict policy transactions in order to do so.
There may also be different tax consequences if you assign your policy,
transfer an interest therein or designate a new owner. See "Assigning your
policy" later in this prospectus. See also special rules below for "Business
and employer owned policies," and for the discussion of insurable interest
under "Other information."
TAX TREATMENT OF DISTRIBUTIONS TO YOU (LOANS, PARTIAL WITHDRAWALS, AND FULL
SURRENDER)
The federal income tax consequences of a distribution from your policy depend
on whether your policy is a "modified endowment contract" (sometimes also
referred to as a "MEC"). In all cases, however, the character of any income
described below as being taxable to the recipient will be ordinary income (as
opposed to capital gain).
TESTING FOR MODIFIED ENDOWMENT CONTRACT STATUS. Your policy will be a "modified
endowment contract" if, at any time during the first seven years of your
policy, you have paid a cumulative amount of premiums that exceeds the
cumulative seven-pay limit. The cumulative seven-pay limit is the amount of
premiums that you would have paid by that time under a similar fixed-benefit
insurance policy that was designed (based on certain assumptions mandated under
the Code) to provide for paid up future benefits after the payment of seven
equal annual premiums. ("Paid up" means that no future premiums would be
required.) This is called the "seven-pay" test.
Whenever there is a "material change" under a policy, the policy will generally
be (a) treated as a new contract for purposes of determining whether the policy
is a modified endowment contract and (b) subjected to a new seven-pay period
and a new seven-pay limit. The new seven-pay limit would be determined taking
into account, under a prescribed formula, the policy account value at the time
of such change.
A materially changed policy would be considered a modified endowment contract
if it failed to satisfy the new seven-pay limit at any time during the new
seven-pay period. A "material change" for these purposes could occur as a
result of a change in death benefit option, a requested increase in the
policy's face amount or certain other changes.
If your policy's benefits are reduced during its first seven years (or within
seven years after a material change), the seven-pay limit will be redetermined
based on the reduced level of benefits and applied retroactively for purposes
of the seven-pay test. (Such a reduction in benefits could include, for
example, a requested decrease in face amount, the termination of additional
benefits under a rider or, in some cases, a partial withdrawal or a change in
death benefit option.) If the premiums previously paid during its first seven
years (or within seven years after a material change) are greater than the
recalculated (lower) seven-pay limit, the policy will become a modified
endowment contract.
A life insurance policy that you receive in exchange for a modified endowment
contract will also be considered a modified endowment contract.
In addition to the above premium limits for testing for modified endowment
status, federal income tax rules must be complied with in order for it to
qualify as life insurance. Changes made to your policy, for example, a decrease
in face amount (including any decrease that may occur as a result of a partial
withdrawal), a change in death benefit option, or other decrease in benefits
may impact the maximum amount of premiums that can be paid, as well as the
maximum amount of policy account value that may be maintained under the policy.
We may also be required to provide a higher death benefit notwithstanding the
decrease in face amount in order to assure that your policy continues to
qualify as life insurance. Under either test, in some cases, this may cause us
to take current or future action in order to assure that your policy continues
to qualify as life insurance, including distribution of amounts to you that may
be includible as income. See "Changes we can make" later in this prospectus.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS NOT A MODIFIED ENDOWMENT
CONTRACT. As long as your policy remains in force as a non-modified endowment
contract, policy loans will be treated as indebtedness, and no part of the loan
proceeds will generally be subject to current federal income tax. Interest on
the loan will generally not be tax deductible, although interest credited on
loan collateral may become taxable under the rules below if distributed.
However, there is some uncertainty as to the federal tax treatment of policy
loans with a small or no spread between the interest rate charged and the
interest rate credited on the amount loaned. You should consult a qualified tax
adviser as to the federal tax treatment of such loans. Also, see below for
taxation of loans upon surrender or termination of your policy.
If you make a partial withdrawal after the first 15 years of your policy, the
proceeds will not be subject to federal income tax except to the extent such
proceeds exceed your "basis" in your policy. (Your basis
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TAX INFORMATION
generally will equal the premiums you have paid, less the amount of any
previous distributions from your policy that were not taxable.) During the
first 15 years, however, the proceeds from a partial withdrawal could be
subject to federal income tax, under a complex formula, to the extent that your
policy account value exceeds your basis.
Upon full surrender, any amount by which the proceeds we pay (including amounts
we use to discharge any policy loan and unpaid loan interest) exceed your basis
in the policy will be subject to federal income tax. IN ADDITION, IF A POLICY
TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN-OUTSTANDING
POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A DISTRIBUTION AND
COULD BE SUBJECT TO TAX UNDER THE FOREGOING RULES. Finally, if you make an
assignment of rights or benefits under your policy, you may be deemed to have
received a distribution from your policy, all or part of which may be taxable.
POLICY LOANS. Policy loans can cause taxable income upon the termination of a
policy with no cash payout. In the case of a surrender, the loan amount is
taken into account in determining any taxable amount and such income can also
exceed the payment received. These events can occur from potential situations
which include: (1) amount of outstanding policy debt (loans taken plus unpaid
interest amounts added to the outstanding loan) at or near the maximum loan
value; (2) unfavorable investment results affecting your policy account value;
(3) increasing monthly policy charges due to increasing attained ages of the
insured; (4) high or increasing amount of insurance risk, depending on death
benefit option and changing account value; and (5) increasing policy loan rates
if an adjustable policy loan rate is in effect.
Ideally a policy loan will be paid from income tax free death benefit proceeds
if your policy is kept in force until the death of the insured. To avoid policy
terminations that may give rise to significant income tax liability, you may
need to make substantial premium payments or loan repayments to keep your
policy in force.
You can reduce the likelihood that these situations will occur by considering
these risks before taking a policy loan. If you take a policy loan, you should
monitor the status of your policy with your financial representative and your
tax advisor at least annually, and take appropriate preventative action. As
indicated above, in the case of a policy that is a modified endowment contract
("MEC"), any loan will be treated as a distribution when made, and thus may be
taxable at such time.
TAXATION OF PRE-DEATH DISTRIBUTIONS IF YOUR POLICY IS A MODIFIED ENDOWMENT
CONTRACT. Any distribution from your policy will be taxed on an "income-first"
basis if your policy is a modified endowment contract. Distributions for this
purpose include a loan (including any increase in the loan amount to pay
interest on an existing loan or an assignment or a pledge to secure a loan) or
withdrawal. Any such distributions will be considered taxable income to you to
the extent your policy account value exceeds your basis in the policy. (For
modified endowment contracts, your basis is similar to the basis described
above for other policies, except that it also would be increased by the amount
of any prior loan under your policy that was considered taxable income to you.)
For purposes of determining the taxable portion of any distribution, all
modified endowment contracts issued by AXA Equitable (or its affiliates) to the
same owner (excluding certain qualified plans) during any calendar year are
treated as if they were a single contract.
A 10% penalty tax also will apply to the taxable portion of most distributions
from a policy that is a modified endowment contract. The penalty tax will not,
however, apply to (i) taxpayers whose actual age is at least 59 1/2,
(ii) distributions in the case of a disability (as defined in the Code) or
(iii) distributions received as part of a series of substantially equal
periodic annuity payments for the life (or life expectancy) of the taxpayer or
the joint lives (or joint life expectancies) of the taxpayer and his or her
beneficiary. The exceptions generally do not apply to life insurance policies
owned by corporations or other entities.
IF YOUR POLICY TERMINATES AFTER A GRACE PERIOD, THE EXTINGUISHMENT OF ANY THEN
OUTSTANDING POLICY LOAN AND UNPAID LOAN INTEREST WILL BE TREATED AS A
DISTRIBUTION (to the extent the loan was not previously treated as such) and
could be subject to tax, including the 10% penalty tax, as described above. In
addition, upon a full surrender, any excess of the proceeds we pay (including
any amounts we use to discharge any loan) over your basis in the policy, will
be subject to federal income tax and, unless an exception applies, the 10%
penalty tax.
Distributions that occur during a year of your policy in which it becomes a
modified endowment contract, and during any subsequent years, will be taxed as
described in the four preceding paragraphs. In addition, distributions from a
policy within two years before it becomes a modified endowment contract also
will be subject to tax in this manner. This means that a distribution made from
a policy that is not a modified endowment contract could later become taxable
as a distribution from a modified endowment contract. So, for example, if a
policy has been collaterally assigned as security for a loan and the policy
subsequently becomes a MEC there could be a taxable deemed distribution even
though the policy owner has not received any payment from us.
POLICY CHANGES. Changes made to a life insurance policy, for example, a
decrease in benefits, a death benefit option change, or the termination or
restoration of a terminated policy, may have other effects on your policy,
including impacting the maximum amount of premiums that can be paid under the
policy. In some cases, this may cause us to take action in order to assure your
policy continues to qualify as life insurance, including distribution of
amounts that may be includable as income. This action may be required under the
tax law even though the policy may not be sufficiently funded to keep it in
force for a desired duration. In some cases, premium payments for a policy year
could be limited to the amount needed to keep the policy in force until the end
of the policy year. You should carefully go over the implications of any policy
changes with your advisor before making a change.
RESTORATION OF A TERMINATED POLICY. For tax purposes, some restorations of a
policy that terminated after a grace period may be treated as the purchase of a
new policy. Since tax laws and regulations and their application may have
changed by such time, there can be no assurance that we can reinstate the
policy to qualify as life insurance under future tax rules.
TAX TREATMENT OF LIVING BENEFITS RIDER OR LONG-TERM CARE SERVICES/SM/ RIDER
UNDER A POLICY WITH THE APPLICABLE RIDER
LIVING BENEFITS RIDER. Amounts received under an insurance policy on the life
of an individual who is terminally ill, as defined by the tax law, are
generally excludable from gross income as an accelerated death benefit. We
believe that the benefits provided under our living benefits rider meet the tax
law's definition of terminally ill under section 101(g) of the Code and can
qualify for this income tax exclusion.
If the owner and the insured person are not the same, the exclusion for
accelerated death benefits for terminal illness or a chronic illness does not
apply if the owner (taxpayer) has an insurable interest with respect to the
life of the insured person by reason of the insured person being an officer,
employee or director of the taxpayer or by reason of the insured person being
financially interested in any trade or business carried on by the taxpayer.
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TAX INFORMATION
LONG-TERM CARE SERVICES/SM/ RIDER. Benefits received under the Long-Term Care
Services/SM/ Rider are intended to be treated, for Federal income tax purposes,
as accelerated death benefits under the Code on the life of a chronically ill
insured person receiving qualified long-term care services within the meaning
of section 7702B of the Code. The benefits are intended to qualify for
exclusion from income subject to the limitations of the Code with respect to a
particular insured person. However, receipt of these benefits may be taxable in
part and may reduce your investment in the policy. Generally income exclusion
for all long-term care type payments from all sources with respect to an
insured person will be limited to the higher of the Health Insurance
Portability and Accountability Act ("HIPAA") per day limit or actual costs
incurred by the taxpayer on behalf of the insured person.
The Long-Term Care Services/SM/ Rider is intended to be a qualified long-term
care insurance contract under section 7702B(b) of the Code. Charges for the
Long-Term Care Services/SM/ Rider are generally not considered deductible for
income tax purposes and may be considered distributions for income tax
purposes, and may be taxable to the owner to the extent not considered a
nontaxable return of premiums paid for the life insurance policy. Assuming the
rider qualifies as intended, charges will reduce your investment in the policy
for income tax purposes (but not below zero) but will not be taxable. Please
see "Policy variations" and "State policy availability and/or variations of
certain features and benefits" Appendices later in this prospectus for more
information on previously issued riders and state variations.
Any adjustments made to your policy death benefit, face amount and other values
as a result of Long-Term Care Services/SM/ Rider benefits paid will also
generally cause us to make adjustments with respect to your policy under
federal income tax rules for testing premiums paid, your tax basis in your
policy, your overall premium limits and the seven-pay period and seven-pay
limit for testing modified endowment contract status.
It is not clear whether the exclusion for accelerated death benefits on account
of chronically-ill insureds applies to benefits under a qualified long-term
care insurance policy for owners whose insurable interests arise from
business-type policies. Please see "Policy variations" and "State policy
availability and/or variations of certain features and benefits" Appendices
later in this prospectus for more information on previously issued riders and
state variations.
UNDER EITHER RIDER, if the owner and insured person are not the same, other tax
considerations may also arise in connection with a transfer of benefits
received to the insured person, for example, gift taxes in personal settings,
compensation income in the employment context and inclusion of life insurance
policy proceeds for estate tax purposes in certain trust owned situations.
Under certain conditions, a gift tax exclusion may be available for certain
amounts paid on behalf of a donee to the provider of medical care.
BUSINESS AND EMPLOYER OWNED POLICIES
Any employer owned life insurance arrangement on an employee or director as
well as any corporate, trade, or business use of a policy should be carefully
reviewed by your tax advisor with attention to the
rules discussed below. Also, careful consideration should be given to any other
rules that may apply, including other possible pending or recently enacted
legislative proposals.
REQUIREMENTS FOR INCOME TAX FREE DEATH BENEFITS. Federal tax law imposes
additional requirements for employer owned life insurance policies. The
provisions can have broad application for contract owners engaged in a trade or
business or certain related persons. These requirements include detailed notice
and consent rules, annual tax reporting and recordkeeping requirements on the
employer and limitations on those employees (including directors) who can be
insured under the life insurance policy. Failure to satisfy applicable
requirements will result in death benefits in excess of premiums paid by the
owner being includible in the owner's income upon the death of the insured
employee. Notice and consent requirements must be satisfied before the issuance
of the life insurance policy or a material change to an existing life insurance
policy, otherwise benefits may lose their tax favored treatment.
The rules generally apply to life insurance policies issued after August 17,
2006. Note, however, that material increases in the death benefit or other
material changes will generally cause an existing policy to be treated as a new
policy and thus subject to the new requirements. The term "material" has not
yet been fully defined but is expected to not include automatic increases in
death benefits in order to maintain compliance with the life insurance policy
tax qualification rules under the Code. An exception for certain tax-free
exchanges of life insurance policies pursuant to Section 1035 of the Code may
be available but is not clearly defined.
LIMITATIONS ON INTEREST DEDUCTIBILITY FOR BUSINESS OWNED LIFE
INSURANCE. Ownership of a policy by a trade or business can limit the amount of
any interest on business borrowings that the entity otherwise could deduct for
federal income tax purposes, even though such business borrowings may be
unrelated to the policy. To avoid the limit, the insured person must be an
officer, director, employee or 20% owner of the trade or business entity when
coverage on that person commences.
The limit does not generally apply for policies owned by natural persons (even
if those persons are conducting a trade or business as sole proprietorships),
unless a trade or business entity that is not a sole proprietorship is a direct
or indirect beneficiary under the policy. Entities commonly have such a
beneficial interest, for example, in so-called "split-dollar" arrangements. If
the trade or business entity has such an interest in a policy, it will be
treated the same as if it owned the policy for purposes of the limit on
deducting interest on unrelated business income.
The limit generally applies only to policies issued after June 8, 1997 in
taxable years ending after such date. However, for this purpose, any material
change in a policy will be treated as the issuance of a new policy.
In cases where the above-discussed limit on deductibility applies, the
non-deductible portion of unrelated interest on business loans is determined by
multiplying the total amount of such interest by a fraction. The numerator of
the fraction is the policy's average account value (excluding amounts we are
holding to secure any policy loans) for the year in question, and the
denominator is the average for the year of the aggregate tax bases of all the
entity's other assets. The above limitation is in addition to rules limiting
interest deductions on policy loans against business-owned life insurance.
Special rules apply to insurance company owners of policies which may be more
restrictive.
USES OF POLICY WHICH MAY BE SCRUTINIZED. The IRS may view certain uses of life
insurance policies as a tax shelter or as an abusive transaction. Please
consult your tax advisor for the most up-to-date information as to IRS
"Recognized Abusive and Listed Transactions" and how they may affect your
policy.
REQUIREMENT THAT WE DIVERSIFY INVESTMENTS
Under Section 817(h) of the Code, the Treasury Department has issued
regulations that implement investment diversification requirements. Failure to
comply with these regulations would disqualify your policy as a life insurance
policy under Section 7702 of the Code. If this were to occur, you would be
subject to federal income tax on any income and gains under the policy and the
death benefit proceeds would lose their income tax-free status. These
consequences would continue for the period of the disqualification and for
subsequent periods. Through the Portfolios, we intend to comply with the
applicable diversification requirements, though no assurances can be given in
this regard.
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ESTATE, GIFT, AND GENERATION-SKIPPING TAXES
If the policy's owner is the insured person, the death benefit will generally
be includable in the owner's estate for purposes of federal estate tax. If the
owner is not the insured person, and the owner dies before the insured person,
the value of the policy would be includable in the owner's estate. If the owner
is neither the insured person nor the beneficiary, the owner will be considered
to have made a gift to the beneficiary of the death benefit proceeds when they
become payable.
In general, a person will not owe estate or gift taxes until gifts made by such
person, plus that person's taxable estate, total at least $10 million (this
statutory amount is to be indexed for inflation after 2010). A portability rule
generally permits a surviving spouse to elect to carry over the unused portion
of the deceased spouse's exclusion amount.
Certain amounts may be deductible or excludable, such as gifts and bequests to
a person's spouse or charitable institutions, as well as for certain gifts per
recipient per year ($15,000 for 2019, indexed for inflation).
As a general rule, if you make a "transfer" to a person two or more generations
younger than you, a generation-skipping tax may be payable. Generation-skipping
transactions would include, for example, a case where a grandparent "skips" his
or her children and names his or her grandchildren as a policy's beneficiaries.
In that case, the generation-skipping "transfer" would be deemed to occur when
the insurance proceeds are paid. The generation-skipping tax rates are similar
to the maximum estate tax rates in effect at the time. Individuals, are
generally allowed an aggregate generation-skipping tax exemption of the same
amount discussed above for estate and gift taxes, but without portability.
The particular situation of each policyowner, insured person or beneficiary
will determine how ownership or receipt of policy proceeds will be treated for
purposes of federal estate, gift and generation-skipping taxes, as well as
state and local estate, inheritance and other taxes. Because these rules are
complex, you should consult with a qualified tax adviser for specific
information, especially where benefits are passing to younger generations.
If this policy is used with estate and gift tax planning in mind, you should
consult with your tax advisor as to the most up-to-date information as to
federal estate, gift and generation skipping tax rules.
PENSION AND PROFIT-SHARING PLANS
There are special limits on the amount of insurance that may be purchased by a
trust or other entity that forms part of a pension or profit-sharing plan
qualified under Section 401(a) or 403 of the Code. In addition, the federal
income tax consequences will be different from those described in this
prospectus. These rules are complex, and you should consult a qualified tax
advisor.
SPLIT-DOLLAR AND OTHER EMPLOYEE BENEFIT PROGRAMS
Complex rules may also apply when a policy is held by an employer or a trust,
or acquired by an employee, in connection with the provision of other employee
benefits. Employees may have imputed income for the value of any economic
benefit provided by the employer. There may be other tax implications, as well.
It is possible that certain split-dollar arrangements may be considered to be a
form of deferred compensation under Section 409A of the Code, which broadens
the definition of deferred compensation plans, and subjects such plans to new
requirements. Further, certain split-dollar arrangements may come within the
rules for business- and employer-owned policies. Among other issues,
policyowners must consider whether the policy was applied for by or issued to a
person having an insurable interest under applicable state law and with the
insured person's consent. The lack of an insurable interest or consent may,
among other things, affect the qualification of the policy as life insurance
for federal income tax purposes and the right of the beneficiary to receive a
death benefit.
If this policy is being or was purchased pursuant to a split-dollar
arrangement, you should also consult your tax advisor for advice concerning the
effect of the following guidance. In 2002 the IRS issued Notice 2002-8
concerning the taxation of split-dollar life insurance arrangements as well as
regulations in both 2002 and 2003. They provide for taxation under one of two
mutually exclusive regimes depending upon the structure of the arrangement.
These are a loan regime and an economic benefit regime. Transition and
grandfathering rules, among other items, should be carefully reviewed when
considering such arrangements. A material modification to an existing
arrangement may result in a change in tax treatment. In addition, public
corporations (generally publicly-traded or publicly-reporting companies) and
their subsidiaries should consider the possible implications on split-dollar
arrangements of the Securities Exchange Act of 1934 which generally prohibit
certain direct or indirect loans to executive officers or directors. At least
some split-dollar arrangements could be deemed to involve loans within the
purview of that section.
ERISA
Employers and employer-created trusts may be subject to reporting, disclosure
and fiduciary obligations under the Employee Retirement Income Security Act of
1974. There may also be other implications. You should consult a qualified
legal advisor.
3.8% TAX ON NET INVESTMENT INCOME OR "NII"
The 3.8% Medicare tax on certain unearned income of taxpayers whose adjusted
incomes exceed certain thresholds applies to all or part of a taxpayer's NII.
As currently interpreted under IRS guidelines, NII includes the taxable portion
of an annuitized payment from a life insurance contract. It has not been
defined to include taxable amounts from partial withdrawals, surrenders or
lapses of life insurance policies subject to loans. You should consult your tax
advisor as to the applicability of this tax to you.
OUR TAXES
The operations of our separate accounts are reported in our federal income tax
return. Separate account investment income and capital gains, however, are, for
tax purposes, reflected in our variable life insurance policy reserves.
Currently we pay no taxes on such income and gains and impose no charge for
such taxes. We reserve the right to impose a charge in the future for taxes
incurred by us that are allocable to the policies.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate accounts. These tax benefits, which
may include the foreign tax credit and the corporate dividends received
deduction, are not passed back to you, since we are the owner of the assets
from which tax benefits may be derived.
TAX WITHHOLDING AND INFORMATION REPORTING
STATUS FOR INCOME TAX PURPOSES; FATCA. In order for us to comply with income
tax withholding and information reporting rules which may apply to life
insurance policies, we request documentation of "status" for tax purposes.
"Status" for tax purposes generally means whether a person is a "U S. person"
or a foreign person with respect to the United States; whether a person is an
individual or an entity, and if an entity, the type of entity. Status for tax
purposes is best documented on the appropriate IRS Form or substitute
certification form (IRS Form W-9 for a U.S. person or the appropriate type of
IRS Form W-8 for a foreign person). If we do not have appropriate certification
or documentation of a person's status for tax purposes on file, it could affect
the rate at which we are required to withhold
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TAX INFORMATION
income tax, and penalties could apply. Information reporting rules could apply
not only to specified transactions, but also to life insurance policy
ownership. For example, under the Foreign Account Tax Compliance Act ("FATCA"),
which applies to certain U.S.-source payments, and similar or related
withholding and information reporting rules, we may be required to report
policy values and other information for certain policyholders. For this reason,
we and our affiliates intend to require appropriate status documentation at
purchase, change of ownership, and affected payment transactions, including
death benefit payments. FATCA and its related guidance is extraordinarily
complex and its effect varies considerably by type of payor, type of payee and
type of recipient.
TAX WITHHOLDING. Generally, unless you provide us with a satisfactory written
election to the contrary prior to the distribution, we are required to withhold
income tax from any proceeds we distribute as part of a taxable transaction
under your policy. If you do not wish us to withhold tax from the payment, or
if we do not withhold enough, you may have to pay later, and you may incur
penalties under the estimated income tax rules. In some cases, where generation
skipping taxes may apply, we may also be required to withhold for such taxes
unless we are provided satisfactory notification that no such taxes are due.
States may also require us to withhold tax on distributions to you and may not
always follow federal rules.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U.S. entity recipients which
are treated as foreign because they fail to document their U.S. status before
payment is made. We do not discuss these rules here in detail. However, we may
require additional documentation in the case of payments made to United States
persons living abroad and non-United States persons (including U.S. entities
treated as foreign) prior to processing any requested transaction. For Puerto
Rico and other jurisdictions, income is considered U.S.-source income. We
anticipate requiring owners or beneficiaries in Puerto Rico which are not
individuals to document their status to avoid 30% FATCA withholding from
U.S.-source income.
POSSIBILITY OF FUTURE TAX CHANGES AND OTHER TAX INFORMATION
The U.S. Congress frequently considers legislation that, if enacted, could
change the tax treatment of life insurance policies or increase the taxes we
pay in connection with such policies. This could include special rules for
tax-exempt entities as well as for corporate or business use of policies. In
addition to legislation enacted in December 2017, Congress may also consider
further proposals to comprehensively reform or overhaul the United States tax
and retirement systems, which if enacted, could affect the tax benefits of a
life insurance policy. Legislative proposals could make sweeping changes to
many longstanding tax rules including certain tax benefits currently available
to newly purchased cash value life insurance policies. Proposals have been
considered to eliminate some or all taxable expenditures or tax preferences
together with some lowering of tax rates. We cannot predict what if any,
legislation will actually be proposed or enacted or what type of grandfathering
will be allowed for existing life insurance policies. In addition, the Treasury
Department may amend existing regulations, issue regulations on the
qualification of life insurance and modified endowment contracts, or adopt new
or clarifying interpretations of existing law. Some areas of possible future
guidance include new rules for testing for policies issued on a special risk
class basis. As a result, there are areas of some uncertainty even under
current laws, such that future tax consequences of a policy could be other than
as described herein.
State and local tax law or, if you are not a U.S. citizen and resident, foreign
tax law, may also affect the tax consequences to you, the insured person or
your beneficiary, and are subject to change or change in interpretation. Any
changes in federal, state, local or foreign tax law or interpretations could
have a retroactive effect both on our taxes and on the way your policy is taxed
or the tax benefit of life insurance policies.
The policies described in this Prospectus are tested for qualification as life
insurance using the 2001 Commissioners Standard Ordinary ("2001 CSO") mortality
tables. See "Cost of insurance charge" later in this Prospectus. Due to updated
State insurance laws and Federal income tax rules new life insurance policies
using any mortality tables other than the 2017 Commissioners Standard Ordinary
("2017 CSO") mortality tables cannot be sold after December 31, 2019.
This change in prevailing mortality tables does not affect existing policies
described in this Prospectus, as they were all purchased before January 1,
2020. The policies will continue to be tested for tax purposes using the 2001
CSO mortality tables. The IRS has issued guidance on changes made after
December 31, 2019 to policies issued before 2020 which are tested using the
2001 CSO mortality tables. This IRS "safe harbor" guidance permits certain
policy changes without losing the ability to use the 2001 CSO mortality tables
for testing. If we determine that certain future changes to your policy would
cause it to lose its ability to be tax tested under the 2001 CSO mortality
tables, we intend to refuse such transactions which might have otherwise been
available under your policy, subject to our rules then in effect. We would take
such action to help assure that your policy can continue to qualify as life
insurance for federal tax testing under the 2001 CSO mortality tables.
OTHER INFORMATION
There are a number of tax benefits associated with variable life insurance
policies. For tax benefits to be available, the policyowner must have an
insurable interest in the life of the insured under applicable state laws.
Requirements may vary by state. A failure can, among other consequences, cause
the policyowner to lose anticipated favorable federal tax treatment generally
afforded life insurance.
For tax benefits to continue, the policy must continue to qualify as life
insurance. We reserve the right to restrict transactions that we determine
would cause your policy to fail to qualify as life insurance under federal tax
law. We also reserve the right to decline to make any change that may cause
your policy to lose its ability to be tested for federal income tax purposes
under the 2001 Commissioners Standard Ordinary Mortality Tables.
In addition to other requirements, federal tax law requires that the insurer,
and not the policyowner, have control of the underlying investment assets for
the policy to qualify as life insurance.
You may make transfers among Portfolios of the Separate Account, but you may
not direct the investments each Portfolio makes. If the IRS were to conclude
that you, as the investor, have control over these investments, then the policy
would no longer qualify as life insurance. You would be treated as the owner of
separate account assets and be currently taxed on any income or gain the assets
generate.
The IRS has provided some guidance on investor control, but many issues remain
unclear. One such issue is whether a policyowner can have too much investor
control if the variable life policy offers a large number of investment options
in which to invest policy account values and/or the ability to make frequent
transfers available under the policy. We do not know if the IRS will provide
any further guidance on the issue. If guidance is provided, we do not know if
it would apply retroactively to policies already in force.
We believe that our variable life policies do not give policyowners investment
control over the investments underlying the various investment options;
however, the IRS could disagree with our position. The IRS could seek to treat
policyowners with a large number of investment options and/or the ability to
freely transfer among investment options as the owners of the underlying
Portfolio's shares. Accordingly, we reserve the right to modify your policy as
necessary to attempt to prevent you from being considered the owner of your
policy's proportionate share of the assets of the Separate Account.
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TAX INFORMATION
10. More information about policy features and benefits
GUARANTEE PREMIUM TEST FOR THE NO-LAPSE GUARANTEES
We offer two guarantees against policy lapse that depends on your having paid
specified amounts of premiums. We refer to these guarantees as our "no-lapse
guarantee" and our optional "Enhanced No Lapse Guarantee Rider" and you can
read more about it in "You can guarantee that your policy will not terminate
before a certain date" in "Risk/benefit summary: Policy features, benefits and
risks," earlier in this prospectus. You can also read more about our Enhanced
No Lapse Guarantee Rider in "Enhanced no lapse guarantee rider" later in this
section.
GUARANTEE PREMIUM TEST. If your net policy account value is not sufficient to
pay a monthly deduction that has become due, we check to see if the cumulative
amount of premiums that you have paid to date (less any partial withdrawals) at
least equals the cumulative guarantee premiums due to date for the no-lapse
guarantee or Enhanced No Lapse Guarantee Rider including any cumulative
guarantee premiums for any optional riders that are then in effect. If it does,
your policy will not lapse, provided that any policy loan and accrued loan
interest does not exceed the policy account value, and provided that the
guarantee is still in effect.
GUARANTEE PREMIUMS. The amount of the guarantee premiums for the no-lapse
guarantee and the Enhanced No Lapse Guarantee Rider, if elected, are set forth
in your policy on a monthly basis. The guarantee premiums are actuarially
determined at policy issuance and depend on the age and other insurance risk
characteristics of the insured person, as well as the amount of the coverage
and additional features you select. The guarantee premiums may change if, for
example, the face amount of the policy or the long-term care specified amount
changes, or a rider is eliminated, or if there is a change in the insured
person's risk characteristics. We will send you a new policy page showing any
change in your guarantee premiums. Any change will be prospective only, and no
change will extend the no-lapse guarantee period beyond its original number of
years.
PAID UP DEATH BENEFIT GUARANTEE
Subject to our approval, you may elect the "paid up" death benefit guarantee at
any time after the fourth year. This benefit provides an opportunity to lock in
all or a portion of your policy's death benefit without making additional
premium payments. Also, this benefit may be attractive to you if you are
concerned about the impact of poor future investment performance or increases
in policy charges on your policy's death benefit and potential policy lapse.
You may elect this benefit provided:
. the insured's attained age is not more than 120;
. you have death benefit "Option A" in effect (see "About your life insurance
benefit" in "Risk/benefit summary: Policy features, benefits and risks,"
earlier in this prospectus);
. we are not paying policy premiums or waiving monthly charges under the
terms of a disability waiver rider and you have not received any payment
under a Living Benefits Rider or the Long-Term Care Services/SM/ Rider;
. the policy is not in default or in a grace period as of the effective date
of the paid up death benefit guarantee;
. the policy account value after the deduction of any proportionate surrender
charge would not be less than any outstanding policy loan and accrued loan
interest;
. the policy is not on loan extension. (For more information about loan
extension, see "Accessing your money" earlier in this prospectus;
. the election would not reduce the face amount (see below) below the minimum
stated in your policy;
. no current or future distribution from the policy will be required to
maintain its qualification as life insurance under the Internal Revenue
Code; and
. If the paid up death benefit is exercised while any MSO Segment is in
effect, an Early Distribution Adjustment will apply and any Segment
Distribution Value will be automatically transferred to the Unloaned GIO
and the EQ Strategic Allocation investment options as specified by you.
. You agree to re-allocate your fund values to the guaranteed interest option
and the EQ Strategic Allocation investment options. We reserve the right to
change the investment options available to you under the paid up death
benefit guarantee. (See "Restrictions on allocations and transfers," below).
The effective date of the paid up death benefit guarantee will be the beginning
of the policy month that next follows the date we approve your request. On the
effective date of this guarantee, all additional benefit riders and
endorsements will automatically terminate including the MSO, Cash Value Plus
Rider and the living benefits rider providing benefits for terminal illness.
The policy's net cash surrender value after the paid up death benefit guarantee
is in effect will equal the policy account value, less any applicable surrender
charges and any outstanding policy loan and accrued loan interest. The policy
death benefit will be Option A. We will continue to deduct policy charges from
your policy account value. As explained below, electing the paid up death
benefit guarantee may reduce your policy's face amount, which in turn may
result in the deduction of a surrender charge. You can request a personalized
illustration that will show you how your policy face amount could be reduced
and values could be affected by electing the paid up death benefit guarantee.
If you elect the paid up death benefit guarantee, the Long-Term Care
Services/SM/ Rider will automatically terminate subject to any Nonforfeiture
Benefit, if elected.
Our paid up death benefit guarantee is not available if you received monthly
benefit payments under the Long-Term Care Services/SM/ Rider before
continuation of coverage under any Nonforfeiture Benefit. Please see Appendix
III later in this prospectus for rider variations.
POSSIBLE REDUCTION OF FACE AMOUNT. The face amount of your policy after this
guarantee is elected is the lesser of (a) the face
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amount immediately before the election or (b) the policy account value on the
effective date of the election divided by a factor based on the then age of the
insured person. The factors are set forth in your policy. As a general matter,
the factors change as the insured person ages so that, if your policy account
value stayed the same, the result of the calculation under clause (b) above
would be lower the longer your policy is in force. We will decline your
election if the new face amount would be less than the minimum stated in your
policy.
If electing the paid up death benefit guarantee causes a reduction in face
amount, we will deduct the same portion of any remaining surrender charge as we
would have deducted if you had requested that decrease directly (rather than
electing the paid up death benefit guarantee). (See "Risk/benefit summary:
Charges and expenses you will pay" earlier in this prospectus.) In certain
cases, a reduction in face amount may cause a policy to become a modified
endowment contract. See "Tax treatment of distributions to you (loans, partial
withdrawals and full surrender)" under "Tax Information."
RESTRICTIONS ON ALLOCATIONS AND TRANSFERS. While the paid up death benefit
guarantee is in effect, you will be restricted as to the investment options
available to you under the policy and the amounts that can be allocated to the
guaranteed interest option. You will be able to allocate up to 25% of your
unloaned policy account value to the guaranteed interest option. Currently, the
remainder of your unloaned policy account value must be allocated among the EQ
Strategic Allocation investment options. (See "About the Portfolios of the
Trusts" for the listing of EQ Strategic Allocation investment options.) When
you elect the paid up death benefit guarantee, we require that you provide us
with new allocation instructions. In the absence of these instructions, we will
be unable to process your request.
Also, transfers from one or more of our EQ Strategic Allocation investment
options into the guaranteed interest option will not be permitted if such
transfer would cause the value of your guaranteed interest option to exceed 25%
of your total unloaned policy account value. Loan repayments allocated to your
guaranteed interest option will be limited to an amount that would not cause
the value in your guaranteed interest option to exceed 25% of your total
unloaned policy account value. If the value in your guaranteed interest option
already exceeds 25% of your total unloaned policy account value (including the
repayment), no portion of the repayment will be allocated to the guaranteed
interest option. Any portion of the loan repayment that is not allocated to the
guaranteed interest option will be allocated in proportion to the loan
repayment amounts for the variable investment options you have specified. If we
do not have instructions, we will use the allocation percentages for the
variable investment options you specified when you elected the paid up death
benefit guarantee or the most recent instructions we have on record. These
restrictions would be lifted if the paid up death benefit guarantee is
terminated.
If the policy guaranteed interest option limitation is in effect at the time
you elect the paid up death benefit guarantee, it will no longer apply while
the paid up death benefit guarantee remains in effect. The limitation amounts
applicable under the paid up death benefit guarantee may permit you to allocate
different amounts into the guaranteed interest option. Please see "Appendix
III: Policy variations" later in this prospectus for more information.
OTHER EFFECTS OF THIS GUARANTEE. After you have elected the paid up death
benefit guarantee, you may request a policy loan, make a loan repayment or
transfer policy account value among the guaranteed interest option and variable
investment options, subject to our rules then in effect. The following
transactions, however, are not permitted when this guarantee is in effect:
. premium payments
. partial withdrawals
. changes to the policy's face amount or death benefit option
. any change that would cause the policy to lose its current or future
qualification as life insurance under the Internal Revenue Code or require
a current or future distribution from the policy to avoid such
disqualification. (See "Tax treatment of distributions to you" under "Tax
information" earlier in this prospectus.)
TERMINATION OF THIS GUARANTEE. You may terminate the paid up death benefit
guarantee by written request to our Administrative Office. If terminated, the
policy face amount will not change. However, premiums may be required to keep
the policy from lapsing. If the guarantee terminates due to an outstanding loan
and accrued loan interest exceeding the policy account value, a payment will be
required to keep the policy and the guarantee in force pursuant to the policy's
grace period provision. If the guarantee terminates for any reason, it cannot
be restored at a later date.
OTHER BENEFITS YOU CAN ADD BY RIDER
When you purchase this policy, you could be eligible for the following other
optional benefits we currently make available by rider:
. Enhanced No Lapse Guarantee Rider -- Described below.
. Long-Term Care Services/SM/ Rider -- Described below.
. Cash Value Plus Rider -- Described below.
. Charitable Legacy Rider -- Described below.
. Disability Deduction Waiver Rider -- This rider waives the monthly charges
from the policy account value if the insured is totally disabled, as
defined in the rider, for at least six consecutive months and the
disability began prior to the policy anniversary nearest the insured's 60th
birthday. If total disability begins on or after this date, the monthly
charges are waived to the earlier of the policy anniversary nearest the
insured's age 65 or termination of disability. Issue ages are 0-59.
However, coverage is not provided until the insured's fifth birthday. The
maximum amount of coverage is $3,000,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. Disability Premium Waiver Rider -- This rider pays the specified premium or
waives the monthly charges from the policy account value, if that amount is
greater, if the insured is totally disabled, as defined in the rider, for
at least six consecutive months and the disability began prior to the
policy anniversary nearest the insured's 60th birthday. If total disability
begins on or after this date, the specified premium is paid (or the monthly
charges, if greater, are waived) to the earlier of the policy anniversary
nearest the insured's age 65 or termination of disability. Issue ages are
0-59. However, coverage is not provided until the insured's fifth birthday.
The maximum amount of coverage is $3,000,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. Children's Term Insurance Rider -- This rider provides term insurance on
the lives of the insured's children, stepchildren and legally adopted
children who are between the ages of 15 days to 18
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years. The insured under the base policy must be between the ages of 17 and
55. The maximum amount of coverage is $25,000 for all AXA Equitable and
affiliates' policies in-force and applied for.
. Option To Purchase Additional Insurance Rider -- This rider allows you to
purchase a new policy for the amount of the option, on specific dates,
without evidence of insurability. The minimum option amount is $25,000 and
the maximum amount is $100,000. Issue ages are 0-37. The maximum amount of
coverage is $100,000 for all AXA Equitable and affiliates' policies inforce
and applied for.
We add the following benefits automatically at no charge to each eligible
policy:
. Substitution Of Insured Person Rider (Available for policies with a minimum
face amount of $100,000 unless it is issued as a result of an Option To
Purchase Additional Insurance election or a conversion from a term life
policy, see "You can change your policy's insured person" under "More
information about procedures that apply to your policy.")
. Living Benefits Rider (See "Your option to receive a terminal illness
living benefit under the Living Benefits Rider" under "Accessing your
money.")
. Paid Up Death Benefit Guarantee Endorsement (See "Paid up death benefit
guarantee" under "More information about policy features and benefits.")
. Loan Extension Endorsement (See "Loan extension (for guideline premium test
policies only)" under "Accessing your money.")
AXA Equitable or your financial professional can provide you with more
information about these riders. Some of these benefits may be selected only at
the time your policy is issued. Some benefits are not available in combination
with others or may not be available in your state. The riders provide
additional terms, conditions and limitations, and we will furnish samples of
them to you on request. We can add, delete, or modify the riders we are making
available, at any time before they become effective as part of your policy.
See also "Tax information" earlier in this prospectus for certain possible tax
consequences and limitations of deleting riders or changing the death benefits
under a rider.
ENHANCED NO LAPSE GUARANTEE RIDER. An optional rider may be elected at issue
subject to our underwriting requirements that provides for a longer no lapse
guarantee period than the one in your base policy. The minimum guarantee period
is 15 years from the register date, and the maximum period is 30 years from
register date if the insured is less than 56 years old or to the insured's
attained age 85 for issue ages 56-70. Issue ages are 0-70. If you elect this
rider at issue, and while the rider is in effect, the investment options
available to you will be restricted to the EQ Strategic Allocation investment
options. You must provide proper allocation instructions at the time you apply
for this policy in order to have your policy issued with this rider. The policy
guaranteed interest option will not apply while the extended no lapse guarantee
rider remains in effect. The limitation amounts applicable under the extended
no lapse guarantee rider may permit you to allocate different amounts into the
guaranteed interest option. Please see "Appendix III: Policy variations" later
in this prospectus for more information.
This rider, while in force, will prevent your policy from lapsing provided that
all of the following conditions apply:
. The rider has not terminated;
. The guarantee premium test for no lapse guarantees has been satisfied (see
"Guarantee premium test for the no lapse guarantees" under "More
information about policy features and benefits"); and
. Any policy loan and accrued loan interest does not exceed the policy
account value.
. RIDER TERMINATION. The Enhanced No Lapse Guarantee Rider will terminate on
the earliest of the following:
-- the date your policy ends without value at the end of a grace period;
-- the date you surrender your policy;
-- the expiration date of the enhanced no lapse guarantee period shown in
your policy;
-- the effective date of the election of the paid up death benefit guarantee;
-- the date that a new insured person is substituted for the original
insured person;
-- the effective date of a requested increase in face amount during the
extended no lapse guarantee period and after attained age 70 of the
insured;
-- the date the policy goes on loan extension; or
-- the beginning of the policy month that coincides with or next follows the
date we receive your written request to terminate the rider.
This rider cannot be restored once it has been terminated.
The Market Stabilizer Option(R) is not available if you elect the Enhanced No
Lapse Guarantee Rider.
CASH VALUE PLUS RIDER (RIDER FORM NO. R11-10 OR STATE VARIATION)
In states where approved, an optional rider may be elected at issue that
reduces the surrender charge if the policy is surrendered for its Net Cash
Surrender Value in the first eight policy years. In order to elect the rider,
the policy must have a minimum face amount of $250,000 per life when one or two
policies are purchased on the lives of members of an insured group and $100,000
per life when policies are purchased on the lives of three or more members. We
deduct $0.04 per $1,000 of the initial base policy face amount from your policy
account value each month, while the rider is in effect.
The rider works by refunding all or a portion of the premium charge and waiving
all or a portion of the surrender charge, if the policy is surrendered in full
in its early years. The percentage of charges refunded or waived under the
rider are as follows:
-----------------------------------------------------------
SURRENDER IN POLICY PERCENT OF PREMIUM PERCENT OF SURRENDER
YEAR CHARGE REFUNDED* CHARGES WAIVED
-----------------------------------------------------------
1 100% 100%
-----------------------------------------------------------
2 80% 100%
-----------------------------------------------------------
3 33% 100%
-----------------------------------------------------------
4 0% 100%
-----------------------------------------------------------
5 0% 80%
-----------------------------------------------------------
6 0% 65%
-----------------------------------------------------------
7 0% 45%
-----------------------------------------------------------
8 0% 25%
-----------------------------------------------------------
9 and later 0% 0%
-----------------------------------------------------------
|
* The mortality and expense risk charge and other monthly charges are not
refunded.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
The net cash surrender value paid, including the reduction of the surrender
charges and refund of a percentage of cumulative premium charges, if a policy
is surrendered in full while this rider is in force, will not exceed the
greater of:
1. a cumulative-based premium cap equal to the sum of premiums paid to the date
of the surrender minus any partial withdrawals, outstanding loan and accrued
loan interest; and
2. the net cash surrender value on the date of surrender calculated prior to
any reduction or refund.
Thus, the cumulative-based premium cap may effectively limit the percentage of
surrender charges waived and/or the percentage of premium charge refunded if a
policy is surrendered in full while this rider is in force.
The reduction of the surrender charges does not apply if the policy is being
exchanged or replaced during the first eight policy years with another life
insurance policy or annuity contract on the insured person including (but not
limited to) a 1035 exchange, nor does it apply to a proportionate surrender
charge resulting from a face amount decrease. There is no refund of the premium
charge if during the first three policy years the policy terminates after a
grace period, is being exchanged or replaced with another life insurance policy
or annuity contract on the insured person including (but not limited to) a 1035
exchange, nor does it apply to a face amount decrease.
Amounts available under the policy for loans and partial withdrawals continue
to be calculated as if this rider was not part of the policy.
The premium load refund that would be applicable upon a complete surrender of
the policy may increase the death benefit that is calculated when the claim is
paid in the first 3 policy years in order for the policy to satisfy the
definition of a "life insurance contract" under Section 7702 of the Code.
. RESTORATION AFTER LAPSE. If your policy is restored after a lapse, the rider
will also be restored unless you made a written request to terminate the rider.
. RIDER TERMINATION. The rider will terminate on the earliest of the following
dates: 1) The end of the eighth policy year; 2) The date the policy ends
without value at the end of the Grace Period or otherwise terminates; 3) After
the first policy anniversary, the effective date of a policy owner's written
request to terminate this rider; or 4) The date the policyowner exercises the
Substitution of Insured Option or Paid Up Death Benefit Guarantee.
This rider is not available if you elect the Long-Term Care Services/SM/ Rider.
Please see "Appendices III and IV" later in this prospectus for more
information on rider variations.
LONG-TERM CARE SERVICES/SM/ RIDER (PLEASE SEE APPENDICES III AND IV LATER IN
THIS PROSPECTUS FOR RIDER VARIATIONS). The rider provides for the acceleration
of all or part of the policy death benefit as a payment each month as a result
of the insured person being a chronically ill individual who is receiving
qualified long-term care services in accordance with a plan of care./(1)/
Benefits accelerated under this rider will be treated as a lien against the
policy death benefit unless benefits are being paid under the optional
Nonforfeiture Benefit. While this rider is in force and before any continuation
of coverage under the optional Nonforfeiture Benefit, if elected, policy face
amount increases and death benefit option changes from Option A to Option B are
not permitted.
(1)For a more complete description of the terms used in this section and
conditions of this rider, please consult your rider policy form.
An individual qualifies as "chronically ill" if he has been certified by a
licensed health care practitioner as being unable to perform (without
substantial assistance from another person) at least two activities of daily
living for a period of at least 90 days due to a loss of functional capacity;
or requiring substantial supervision to protect such individual from threats to
health and safety due to cognitive impairment.
Benefits are payable once we receive: 1) a written certification from a U.S.
licensed health care practitioner that the insured person is a chronically ill
individual and is receiving qualified long-term care services in accordance
with a plan of care; 2) proof that the "elimination period," as discussed
below, has been satisfied; and 3) written notice of claim and proof of loss in
a form satisfactory to us. In order to continue monthly benefit payments, we
require recertification by a U.S. licensed health care practitioner every
twelve months from the date of the initial or subsequent certification that the
insured person is still a chronically ill individual receiving qualified
long-term care services in accordance with a plan of care. Otherwise, unless
earlier terminated due to a change in status of the insured or payout of the
maximum total benefit amount, benefit payments will terminate at the end of the
twelve month period. We also, at our own expense, may have the insured person
examined as often as we may reasonably require during a period of coverage.
This rider may not cover all of the costs associated with long-term care
services during the insured person's period of coverage.
The monthly rate charged for this rider varies based on the insured person's
sex, issue age, class of risk and tobacco user status, as well as the benefit
percentage selected and whether you selected the rider with or without the
optional Nonforfeiture Benefit. See "Risk/benefit summary: Charges and expenses
you will pay" earlier in this prospectus for more information on the charges we
deduct for this rider.
If the net policy value is insufficient to cover the total monthly deductions
for the base policy and any riders while benefits under this rider are being
paid, we will not lapse the policy. While monthly benefits under the Long-Term
Care Services/SM/ Rider are being paid, we will waive the monthly charge for
the Long-Term Care Services/SM/ Rider.
We will pay up to the maximum total benefit for qualified long-term care
services for the insured person for the duration of a period of coverage.
During any period of coverage, the maximum total benefit is determined as of
the first day of that period of coverage.
For policies with death benefit Option A, the maximum total benefit is equal to
the current long-term care specified amount. For policies with death benefit
Option A, the initial long term care specified amount is equal to the face
amount of the base policy at issue multiplied by the acceleration percentage.
You can select an acceleration percentage between 20% and 100%, subject to the
minimum initial long-term care specified amount of $100,000.
For policies with death benefit Option B, the maximum total benefit is equal to
the current long-term care specified amount, plus the policy account value. For
policies with death benefit Option B, the initial long term care specified
amount is equal to the face amount of the base policy multiplied by 100%. You
do not select an acceleration percentage.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
During any period of coverage (see below), the maximum Total Benefit is
determined as of the first day of that period of coverage.
The initial long-term care specified amount may change due to subsequent policy
transactions and will be reduced at the end of a period of coverage to reflect
benefits paid during that period of coverage. Any request for a decrease in the
policy face amount may reduce the current long-term care specified amount to an
amount equal to the lesser of: (a) the new policy face amount multiplied by the
acceleration percentage selected, or (b) the long-term care specified amount
immediately prior to the face amount decrease. If you selected death benefit
Option A, any partial withdrawal will reduce the current long-term care
specified amount by the amount of the withdrawal, but not to less than the
policy account value minus the amount of the withdrawal. If you selected death
benefit Option B, the current long-term care specified amount will not be
reduced.
The maximum monthly benefit is the maximum amount we or an affiliated company
will pay in a month for qualified long-term care services for the insured
person. Affiliates include AXA Equitable Life and Annuity Company, MONY Life
Insurance Company of America, and U.S. Financial Life Insurance Company. The
maximum monthly benefit payment amount that you can purchase from the issuer
and its affiliates is limited to $50,000 per month, per insured person. At
issue, the maximum monthly benefit is equal to the long-term care specified
amount multiplied by the benefit percentage selected. After that, the maximum
monthly benefit is equal to the maximum total benefit as of the first day of
the first period of coverage, or on the date coverage under the Nonforfeiture
Benefit begins, if earlier, multiplied by the benefit percentage selected.
Each month, the monthly benefit payment (a portion of which will be applied to
repay any outstanding policy loan) for qualified long-term care services for
the insured person is the lesser of:
1. the maximum monthly benefit (or lesser amount as requested, however, this
may not be less than $500); or
2. the monthly equivalent of 200% of the per day limit allowed by the Health
Insurance Portability and Accountability Act or "HIPAA." (We reserve the
right to increase this percentage.) To find out the current per day limit
allowed by HIPAA, go to www.IRS.gov. We may also include this information in
your policy's annual report.
We will pay a proportionate amount of the monthly benefit payment for services
rendered for less than a full month.
When benefits are paid under this rider, we establish an accumulated benefit
lien. This accumulated benefit lien amount will equal the cumulative amount of
rider benefits paid (including any loan repayments) during a period of
coverage. We deduct the accumulated benefit lien amount from the base policy
death benefit if the insured person dies before the end of a period of
coverage. We also reduce the cash surrender value, as described below.
. ELIMINATION PERIOD. The Long-Term Care Services/SM/ Rider has an elimination
period that is the required period of time while the rider is in force that
must elapse before any benefit is available to the insured person under this
rider. The elimination period is 90 days, beginning on the first day of any
qualified long-term care services that are provided to the insured person.
Except as described below, benefits under this rider will not be paid until the
elimination period is satisfied, and benefits will not be retroactively paid
for the elimination period. The elimination period can be satisfied by any
combination of days of care in a qualified long-term care facility or qualified
days of home health care. The days do not have to be continuous, but the
elimination period must be satisfied within a consecutive period of 24 months
starting with the month in which such services are first provided. If the
elimination period is not satisfied within this time period, you must submit a
new claim for benefits under this rider. This means that a new elimination
period of 90 days must be satisfied within a new 24-month period. The
elimination period must be satisfied only once while this rider is in effect.
Furthermore, and solely at our discretion, we may deem the elimination period
to be satisfied if the insured person provides proof of care from a U.S.
licensed health care provider for at least 60 service days (approximately 5
days a week) within a consecutive period of 90 days starting on the first day
on which such services are first provided.
You can request retroactive payment of benefits for the elimination period if a
U.S. licensed health care practitioner provides written certification that the
insured person is chronically ill and is expected to require qualified
long-term care services for the remainder of the insured person's life, once
the elimination period and all other eligibility requirements have been
satisfied. The amount of any such retroactive payment will be deducted from the
maximum total benefit.
. PERIOD OF COVERAGE. The period of coverage is the period of time during which
the insured person receives services that are covered under the Long-Term Care
Services/SM/ Rider and for which benefits are payable. This begins on the first
day covered services are received after the end of the elimination period. A
period of coverage will end on the earliest of the following dates:
1. the date we receive the notice of release which must be sent to us when the
insured person is no longer receiving qualified long-term care services;
2. the date we discover the insured person is no longer receiving Qualified
Long-Term Care Services in accordance with the Plan of Care written for that
Period of Coverage;
3. the date you request that we terminate benefit payments under this rider;
4. the date the accumulated benefit lien amount equals the maximum total
benefit (or if your coverage is continued as a Nonforfeiture benefit, the
date the maximum total Nonforfeiture Benefit has been paid out);
5. the date you surrender the policy (except to the extent of any Nonforfeiture
Benefit you may have under the rider);
6. the date we make a payment under the living benefits rider (for terminal
illness) if it occurs before coverage is continued as a Nonforfeiture
Benefit; or
7. the date of death of the insured person.
During a period of coverage before coverage is continued as a Nonforfeiture
Benefit:
1. Partial withdrawals, face amount decreases and premium payments are not
permitted.
2. The policy death benefit will not be less than the maximum total benefit.
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MORE INFORMATION ABOUT POLICY FEATURES AND BENEFITS
3. Each monthly benefit payment will increase the accumulated benefit lien
amount by the amount of the payment--including any loan repayment. The
accumulated benefit lien amount will be deducted from the policy death
benefit in determining the insurance benefit we pay.
4. For the purposes of determining the cash surrender value of this policy, the
policy face amount and the unloaned policy account value will be reduced by
a percentage. For policies with death benefit Option A, the percentage will
be equal to the accumulated benefit lien amount divided by the policy face
amount. For policies with death benefit Option B, the percentage will be
equal to the accumulated benefit lien amount divided by the policy face
amount plus the unloaned policy account value. For all policies, the
percentage will not be more than 100% and the unloaned policy account value
will not be reduced by more than the accumulated benefit lien amount. Any
applicable surrender charge will be reduced on a pro rata basis for the
reduction in the policy face amount.
5. If there is an outstanding policy loan (and accrued loan interest) at the
time we make a benefit payment, an amount equal to a percentage of the loan
and accrued loan interest will be deducted from the monthly benefit payment
and used as a loan repayment and will reduce the amount otherwise payable to
you. This percentage will equal the monthly benefit payment divided by the
portion of the maximum total benefit that we have not accelerated to date.
6. The loan extension and paid up death benefit guarantee endorsements will no
longer be applicable at any time once benefits are paid under this rider .
7. Transfers of any unloaned policy account value allocated to the guaranteed
interest option or to the variable investment options are permitted. We do,
however, reserve the right to restrict the variable investment options
available to you during a period of coverage. If we exercise this right, we
will notify you of such restrictions in advance.
After a period of coverage ends before coverage is continued as a Nonforfeiture
Benefit:
1. The base policy face amount and the unloaned policy account value will each
be reduced by a percentage. For policies with death benefit Option A, the
percentage will be equal to the accumulated benefit lien amount divided by
the base policy face amount. For policies with death benefit Option B, the
percentage will be equal to the accumulated benefit lien amount divided by
the base policy face amount plus the unloaned policy account value. For all
policies, the percentage will not be more than 100% and the unloaned policy
account value will not be reduced by more than the accumulated benefit lien
amount.
2. Any applicable surrender charges will be reduced on a pro rata basis for the
reduction in the policy face amount.
3. The long-term care specified amount will be reduced by a percentage equal to
the accumulated benefit lien amount, divided by the maximum total benefit.
If after this calculation, the long-term care specified amount would be
greater than the base policy face amount, the long-term care specified
amount will be further reduced to the base policy face amount.
4. For any subsequent period of coverage, the maximum monthly benefit will be
equal to the maximum monthly benefit during the initial period of coverage.
5. The premium fund values that are used by us to determine whether a guarantee
against policy lapse or a guarantee of death benefit protection is in effect
will also be reduced pro rata to the reduction in the base policy face
amount.
6. Any remaining balance for an outstanding loan and accrued loan interest will
not be reduced.
7. The accumulated benefit lien amount is reset to zero.
If any MSO Segments are in effect, they will be terminated with corresponding
early distribution adjustments, and the MSO Segment values will be reallocated
to the variable investment options and your GIO based on your premium
allocations then in effect.
The reduction in your policy account value will reduce your unloaned value in
the guaranteed interest option and your values in the variable investment
options in accordance with your monthly deduction allocation percentages then
in effect. If we cannot make the reduction in this way, we will make the
reduction based on the proportion that your unloaned values in the guaranteed
interest option and your values in the variable investment options bear to the
total unloaned value in your policy account.
After the period of coverage has ended, we will provide you with notice of the
adjusted values.
If the entire maximum total benefit has been paid out, the period of coverage
will end, policy values will be adjusted as described above, and this rider
will terminate. If the net policy account value is insufficient to cover the
monthly deductions, the policy will terminate subject to the grace period
provision.
. RIDER TERMINATION. This rider will terminate, and no further benefits will
be payable (except, where applicable, as may be provided under the
"Extension of Benefits" and the "Nonforfeiture Benefit" provisions of this
rider), on the earliest of the following:
1. at any time after the first policy year, on the next monthly anniversary on
or following the date we receive your written request to terminate this
rider;
2. upon termination or surrender of the policy;
3. the date of the insured person's death;
4. the date when the accumulated benefit lien amount equals the maximum total
benefit amount;
5. the effective date of the election of the paid up death benefit guarantee;
6. the date you request payment under a living benefits rider due to terminal
illness of the insured person (whether or not monthly benefit payments are
being made as of such date) if it occurs before coverage is continued as a
Nonforfeiture Benefit;
7. the date the policy goes on loan extension if it occurs before coverage is
continued as a Nonforfeiture Benefit; or
8. on the date that a new insured person is substituted for the original
insured person under the terms of any substitution of insured rider if it
occurs before coverage is continued as a Nonforfeiture Benefit.
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If this rider does not terminate, it will remain in force as long as the policy
remains in force. This rider may be restored after termination if certain
qualifications for restoration of rider benefits are met.
. EXTENSION OF BENEFITS. If your policy lapses, terminating this rider, while
the insured person is confined in a long-term care facility but before any
rider benefits have been paid for a current period of coverage, benefits
for that confinement may be payable provided that the confinement began
while this rider was in force and the confinement continues without
interruption after rider termination. Benefits may continue until the
earliest of the following dates: (a) the date the insured person is
discharged from such confinement (in this case, the maximum total benefit
will be reduced by rider benefits that have been paid out); (b) the date
the maximum total benefit has been paid; or (c) the date of death of the
insured person. If benefits are payable under this provision, there will be
no death benefit payable to the beneficiary or beneficiaries named in the
base policy.
NONFORFEITURE BENEFIT
For a higher monthly charge, you can elect the Long-Term Care Services/SM/
Rider with the Nonforfeiture Benefit. The Nonforfeiture Benefit may continue
coverage under the rider in a reduced benefit amount in situations where
(a) the Long-Term Care Services/SM/ Rider would otherwise terminate; (b) you
have not already received benefits (including any loan repayments) that equal
or exceed the total charges deducted for the rider; and (c) your policy and
Long-Term Care Services/SM/ Rider were in force for at least three policy years.
While the Nonforfeiture Benefit is in effect, all of the provisions of the
Long-Term Care Services/SM/ Rider remain applicable to you. The maximum total
Nonforfeiture Benefit will be the greater of:
(a)One month's maximum monthly benefit and
(b)The sum of all charges deducted for the Long-Term Care Services/SM/ Rider
(with the Nonforfeiture Benefit). This amount excludes any charges that
may have previously been waived while rider benefits were being paid.
The maximum total Nonforfeiture Benefit will be reduced (but not below zero) by
all monthly benefit payments paid under the rider, including any loan
repayments and any payments made under the "Extension of Benefits" and
"Nonforfeiture Benefit" provisions. Also, the maximum total Nonforfeiture
Benefit will not exceed the maximum total benefit under the rider as of the
date coverage under the Nonforfeiture Benefit begins.
Coverage under the Nonforfeiture Benefit begins on the date the Long-Term Care
Services/SM/ Rider would otherwise terminate for one of the following reasons
(unless benefits are being continued under the "Extension of Benefits"
provision of the rider):
(1)We receive your written request to terminate the Long-Term Care Services/SM/
Rider;
(2)You surrender your policy;
(3)Your policy terminates without value at the end of a grace period; or
(4)You elect a Paid Up death benefit guarantee.
If benefits are being continued under the "Extension of Benefits" provision of
the rider and the maximum total benefit has not been paid out, coverage under
the Nonforfeiture Benefit begins on the date the insured is discharged from a
long-term care facility.
Once in effect, the Nonforfeiture benefit will continue long-term care coverage
under a paid-up status until the earliest of (a) the death of the insured, and
(b) the date the maximum total Nonforfeiture Benefit has been paid out and
reduced to zero during a period of coverage. If coverage is continued under the
Nonforfeiture benefit, you will receive additional information regarding the
benefit, including the maximum total Nonforfeiture Benefit amount.
For tax information concerning the Long-Term Care Services/SM/ Rider, see "Tax
information" earlier in this prospectus.
CHARITABLE LEGACY RIDER. An optional rider may be elected at issue that
provides an additional death benefit of 1% of the base policy face amount to
the qualified charitable organization(s) chosen by the policy owner at no
additional cost. This rider is only available at issue and an accredited
charitable beneficiary must be named at that time. The rider is available for
base policy face amounts of $1 million and above, where the minimum benefit
would be $10,000 and the maximum benefit would be $100,000 (i.e. for face
amounts of $10 million and above).
If the base policy face amount is reduced after issue for any reason, the
benefit will be payable on the face amount at the time of the insured's death,
provided the face amount is at least $1 million. If the face amount has been
decreased below $1 million at the time of death, then no benefit is payable.
The designated beneficiary of this rider must be an organization exempt from
federal taxation under Section 501(c) of the Code and listed in Section 170(c)
of the Code as an authorized recipient of charitable contributions. See
www.IRS.gov for valid organizations.
. RIDER TERMINATION. The charitable legacy rider will terminate and no
further benefits will be paid on the earliest of the following:
-- the termination of the policy;
-- the surrender of the policy;
-- the date we receive the policy owner's written request to terminate the
rider;
-- the date of the insured's death; or
-- the date the policy is placed on loan extension.
If the base policy lapses and is subsequently restored, the rider will be
reinstated. The rider will not be terminated if the policy owner executes the
Substitution Of Insured Person Rider or elects the paid up death benefit
guarantee.
CUSTOMER LOYALTY CREDIT
We provide a customer loyalty credit for policies that have been in force for
more than 8 years. This is added to your policy account value each month. The
dollar amount of the credit is a percentage of the total amount you then have
in your policy account, but excluding any value we are holding as collateral
for any policy loans.
The credit begins in the policy's 9th year. The percentage credit is currently
at an annual rate as described in the charts below depending upon the issue age
of the insured, the death benefit option you elected at issue, the policy
duration and the level at which the policy is funded. If at the end of the
first 7 policy years, the cumulative amount of premiums that you have paid to
date (less any partial withdrawals) then: (i) if you elected at issue the death
benefit Option A and is less than 16 "target premiums" for issue ages 18 - 58
or less than 12 "target premiums" for issue ages 0 - 17 and issue ages 59 and
above, OR (ii) if you elected at issue the death benefit Option
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B and is less than 13 "target premiums" for issue ages 18 - 58 or less than 11
"target premiums" for issue ages 0 - 17 and issue ages 59 and above the
percentage credit will be as follows:
--------------------------------------------------------------------------
ISSUE CREDIT CREDIT
AGE DURATION AMOUNT DURATION AMOUNT
--------------------------------------------------------------------------
0 - 29 Policy yrs 9 - 35 0.25% Policy yrs 36+ 0.40%
--------------------------------------------------------------------------
30 - 39 Policy yrs 9 - 25 0.20% Policy yrs 26+ 0.35%
--------------------------------------------------------------------------
40 - 49 Policy yrs 9 - 20 0.15% Policy yrs 21+ 0.30%
--------------------------------------------------------------------------
50 - 59 Policy yrs 9 - 15 0.15% Policy yrs 16+ 0.20%
--------------------------------------------------------------------------
60 + Policy yrs 9+ 0.15%
--------------------------------------------------------------------------
|
Otherwise, the percentage credit will be as follows:
--------------------------------------------------------------------------
ISSUE CREDIT CREDIT
AGE DURATION AMOUNT DURATION AMOUNT
--------------------------------------------------------------------------
0 - 29 Policy yrs 9 - 27 0.25% Policy yrs 28+ 0.55%
--------------------------------------------------------------------------
30 - 39 Policy yrs 9 - 18 0.25% Policy yrs 19+ 0.55%
--------------------------------------------------------------------------
40 - 49 Policy yrs 9 - 14 0.30% Policy yrs 15+ 0.55%
--------------------------------------------------------------------------
50 - 59 Policy yrs 9 - 10 0.30% Policy yrs 11+ 0.55%
--------------------------------------------------------------------------
60 + Policy yrs 9+ 0.30%
--------------------------------------------------------------------------
|
The "target premium" is actuarially determined for each policy, based on that
policy's characteristics, as well as the death benefit option at issue and the
policy's face amount. The illustrations of Policy Benefits that your financial
professional will provide will contain more information regarding the amount of
premiums that must be paid in order for the higher percentage credit to be
applicable to your policy.
This credit is not guaranteed.
VARIATIONS AMONG INCENTIVE LIFE OPTIMIZER(R) II POLICIES
Time periods and other terms and conditions described in this prospectus may
vary due to legal requirements in your state. These variations will be
reflected in your policy.
AXA Equitable also may vary or waive the charges (including surrender charges)
and other terms of Incentive Life Optimizer(R) II where special circumstances
(including certain policy exchanges) result in sales or administrative expenses
or mortality risks that are different from those normally associated with
Incentive Life Optimizer(R) II. We will make such variations only in accordance
with uniform rules that we establish.
AXA Equitable or your financial professional can advise you about any
variations that may apply to your policy or see Appendices III and IV later in
this prospectus for more information.
YOUR OPTIONS FOR RECEIVING POLICY PROCEEDS
BENEFICIARY OF DEATH BENEFIT. You designate your policy's beneficiary in your
policy application. You can change the beneficiary at any other time during the
insured person's life. If no beneficiary is living when the insured person
dies, we will pay the death benefit proceeds in equal shares to the insured
person's surviving children. If there are no surviving children, we will
instead pay the insured person's estate.
PAYMENT OF DEATH BENEFIT. We will pay any death benefit in a single sum. If the
beneficiary is a natural person (i.e., not an entity such as a corporation or a
trust) and so elects, death benefit proceeds can be paid through the "AXA
Equitable Access Account", which is a draft account that works in certain
respects like an interest-bearing checking account. In that case, we will send
the beneficiary a draftbook, and the beneficiary will have immediate access to
the proceeds by writing a draft for all or part of the amount of the death
benefit proceeds. AXA Equitable will retain the funds until a draft is
presented for payment. Interest on the AXA Equitable Access Account is earned
from the date we establish the account until the account is closed by your
beneficiary or by us if the account balance falls below the minimum balance
requirement, which is currently $1,000. The AXA Equitable Access Account is
part of AXA Equitable's general account and is subject to the claims of our
creditors. We will receive any investment earnings during the period such
amounts remain in the general account. The AXA Equitable Access Account is not
a bank account or a checking account and it is not insured by the FDIC. Funds
held by insurance companies in the general account are guaranteed by the
respective state guaranty association.
A beneficiary residing outside the U.S., however, cannot elect the AXA
Equitable Access Account. If the beneficiary is a trust that has two or fewer
trustees, death benefit proceeds can be paid through the AXA Equitable Access
Account.
If a financial professional has assisted the beneficiary in preparing the
documents that are required for payment of the death benefit, we will send the
AXA Equitable Access Account checkbook or check to the financial professional
within the periods specified for death benefit payments under "When we pay
policy proceeds," later in this prospectus. Our financial professionals will
take reasonable steps to arrange for prompt delivery to the beneficiary.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
This is provided for information purposes only. Since the contracts are no
longer available to new purchasers, this cancellation provision is no longer
applicable.
You may cancel your policy by returning the policy along with a properly signed
and completed written request for cancellation to our Administrative Office or,
in some states, to the agent who sold it to you or any agent of AXA Equitable,
by the 10th day after you receive it (or such longer period as required under
state law). Your coverage will terminate as of the business day we receive your
request at our Administrative Office (or, in some states, as of the business
day the agent receives your request).
In most states, we will refund the policy account value calculated as of the
business day we receive your request for cancellation at our Administrative
Office (or, in some states, as of the business day the agent receives your
request), plus any charges that were deducted from premiums that were paid and
from the policy account value, less any outstanding loan and accrued loan
interest. In other states, we will refund the premiums that were paid, less any
outstanding loan and accrued loan interest. Your policy will set forth the
specific terms of your "Right to Examine" the policy.
Please also see "Your right to cancel within a certain number of days" under
"About the Market Stabilizer Option(R)" earlier in this prospectus on how
amounts you allocated to the MSO are returned to you.
In addition to the cancellation right described above, you have the right to
surrender your policy, rather than cancel it. Please see "Surrendering your
policy for its net cash surrender value," earlier in this prospectus.
Surrendering your policy may yield results different than canceling your
policy, including a greater potential for taxable income. In some cases, your
cash value upon surrender may be greater than your contributions to the policy.
Please see "Tax information," earlier in this prospectus for possible
consequences of cancelling your policy.
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11. More information about certain policy charges
DEDUCTING POLICY CHARGES
PURPOSES OF POLICY CHARGES. The charges under the policies are designed to
cover, in the aggregate, our direct and indirect costs of selling,
administering and providing benefits under the policies. They are also
designed, in the aggregate, to compensate us for the risks of loss we assume
pursuant to the policies. If, as we expect, the charges that we collect from
the policies exceed our total costs in connection with the policies, we will
earn a profit. Otherwise, we will incur a loss. In addition to the charges
described below, there are also charges at the Portfolio level, which are
described in the prospectuses of the Portfolios in which the funds invest. For
additional information on all policy charges, see "Risk/benefit summary:
Charges and expenses you will pay."
TRANSACTION CHARGES
On the first day of each policy month, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below (see "Periodic charges" below). In addition, charges may be deducted for
transactions such as premium payments, policy surrenders, requested decreases
in face amount, or transfers among investment options.
. PREMIUM CHARGE. We deduct an amount not to exceed 6% from each premium
payment you send us. Currently, we reduce this charge to 4% after an amount
equal to two "target premiums" has been paid. The "target premium" is
actuarially determined for each policy, based on that policy's specified
characteristics death benefit option, as well as the policy's face amount,
among other factors. In addition, if your policy includes the Cash Value Plus
Rider, a portion of the deductions from premiums will be refunded upon
surrender within the first three policy years, subject to a cumulative
premium-based cap on the rider benefits (see "Cash Value Plus Rider" in "More
information about policy features and benefits" earlier in this prospectus). A
similar charge applies to premiums attributed to requested face amount
increases that are above your highest previous face amount. The premium charge
is designed in part to defray sales and tax expenses we incur that are based on
premium payments.
. SURRENDER CHARGES. If you give up this policy for its net cash surrender
value before the end of the tenth policy year, or within the first ten years
after a face amount increase over the previous highest base policy face amount,
we will subtract a surrender charge from your policy account value. The
surrender charge in the first policy month of each policy year is shown in your
policy. The initial surrender charge will be between $8.71 and $45.91 per
$1,000 of initial base policy face amount, or base policy face amount increase.
The surrender charge declines uniformly in equal monthly amounts within each
policy year until it reaches zero in the twelfth month of policy year ten. The
initial amount of surrender charge depends on each policy's specific
characteristics. In addition, if your policy includes the Cash Value Plus
Rider, the surrender charges are reduced, subject to a cumulative premium-based
cap on the rider benefits (see "Cash Value Plus Rider" in "More information
about policy features and benefits" earlier in this prospectus). Changes in the
base policy face amount resulting from a change in death benefit option will
not be considered in computing the previous highest face amount.
The surrender charge attributable to each increase in your policy's face amount
is in addition to any remaining surrender charge attributable to the policy's
initial face amount.
The surrender charges are contingent deferred sales charges. They are
contingent because you only pay them if you surrender your policy for its net
cash surrender value (or request a reduction in its face amount, as described
below). They are deferred because we do not deduct them from your premiums.
Because the surrender charges are contingent and deferred, the amount we
collect in a policy year is not related to actual expenses for that year.
The surrender charges assessed in connection with giving up this policy or with
reductions in policy face amount are intended, in part, to compensate us for
the fact that it takes us time to make a profit on your policy, and if you give
up or reduce the face amount of your policy in its early years, we do not have
the time to recoup our costs.
. REQUEST A DECREASE IN YOUR POLICY'S FACE AMOUNT. If there is a requested base
policy face amount reduction within the first ten policy years or within ten
years following a face amount increase, or the paid-up death benefit guarantee
is elected for a reduced amount during a surrender charge period, a
proportionate surrender charge will be deducted from your policy account value.
Assuming you have not previously changed the base policy face amount, a
proportionate surrender charge will be determined by dividing the amount of the
reduction in base policy face amount by the initial base policy face amount of
insurance, and then multiplying that fraction by the surrender charge
immediately before the reduction. The proportionate surrender charge will not
exceed the unloaned policy account value at the time of the reduction. If a
proportionate surrender charge is made, the remaining surrender charge will be
reduced proportionately. We will not deduct a proportionate surrender charge if
the reduction resulted from a change in death benefit option or a partial
withdrawal.
If there have been prior increases in face amount, the decrease will be deemed
to cancel, first, each increase in reverse chronological order (beginning with
the most recent) and then the initial face amount. We will deduct from your
policy account value any surrender charge that is associated with any portion
of the face amount that is thus deemed to be canceled.
. TRANSFERS AMONG INVESTMENT OPTIONS. Although we do not currently charge for
transfers among investment options, we reserve the right to make a transfer
charge up to $25 for each transfer of amounts among your investment options.
The transfer charge, if any, is deducted from the amounts transferred from your
policy's value in the variable investment options and in our guaranteed
interest option based on the proportion that the amount transferred from each
variable investment option and from our guaranteed interest option bears to the
total amount being transferred. Any such charge
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would be, in part, to compensate us for our expenses in administering
transfers. The charge will never apply to a transfer of all of your variable
investment option amounts to our guaranteed interest option, or to any transfer
pursuant to our automated transfer service or asset rebalancing service. Nor
will this charge apply to any transfers to or from the "MSO" or any transfers
to or from any Holding Account that we make available in connection with the
MSO. Please see "About the Market Stabilizer Option(R)" earlier in this
prospectus for information about the MSO and the related "Holding Account."
SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service.
Please note that we may discontinue some or all of these services without
notice.
. WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
. EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the amount you request.
. POLICY ILLUSTRATION CHARGE. We do not charge for illustrations. We reserve
the right to charge in the future.
. DUPLICATE POLICY CHARGE. We charge $35 for providing a copy of your policy.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our Administrative Office, or (iii)
by any other means we make available to you.
. POLICY HISTORY CHARGE. We charge a maximum of $50 for providing you a history
of policy transactions. If you request a policy history of less than 5 years
from the date of your request, there is no charge. If you request a policy
history of more than 5 years but less than 10 years from the date of your
request, the current charge is $25. For policy histories of 10 years or more,
the charge is $50. For all policy histories, we reserve the right to charge a
maximum of $50. The charge for this service can be paid (i) using a credit card
acceptable to AXA Equitable, (ii) by sending a check to our Administrative
Office, or (iii) by any other means we make available to you.
. CHARGE FOR RETURNED PAYMENTS. For each payment you make in connection with
your policy that is returned for insufficient funds, we will charge a maximum
of $25.
PERIODIC CHARGES
On the first day of each month of the policy, charges for cost of insurance and
certain other charges are deducted from your policy account value as specified
below.
. ADMINISTRATIVE CHARGE. In the first policy year, we deduct $15 from your
policy account value at the beginning of each policy month. Currently, in all
subsequent policy years we deduct $10 at the beginning of each policy month,
but not beyond the policy anniversary when the insured person is attained age
100. We reserve the right to increase or decrease this amount in the future,
although it will never exceed $10 and will never be deducted beyond the policy
anniversary when the insured person is attained age 121. In addition we
currently deduct between $0.09 and $0.34 per $1,000 of your initial base policy
face amount and any face amount increase above the previous highest face amount
at the beginning of each policy month in the first ten policy years and for ten
years following a face amount increase. We reserve the right to continue this
charge beyond the ten year period previously described, but it will never be
deducted beyond the policy anniversary when the insured person is attained age
121. The administrative charge is intended, in part, to compensate us for the
costs involved in administering the policy.
. COST OF INSURANCE CHARGE. The cost of insurance rates vary depending on a
number of factors, including, but not limited to, the individual
characteristics of the insured, the face amount and the policy year. The
monthly cost of insurance charge is determined by multiplying the cost of
insurance rate that is then applicable to your policy by the amount we have at
risk under your policy divided by $1,000. Our amount at risk (also described in
your policy as "net amount at risk") on any date is the difference between
(a) the death benefit that would be payable if the insured person died on that
date and (b) the then total account value under the policy. A greater amount at
risk, or a higher cost of insurance rate, will result in a higher monthly
charge. The cost of insurance rates are intended, in part, to compensate us for
the cost of providing insurance to you under your policy.
Generally, the cost of insurance rate increases from one policy year to the
next. This happens automatically because of the insured person's increasing age.
On a guaranteed basis, we may deduct between $0.02 and $83.34 per $1,000 of the
amount for which we are at risk under your policy from your policy account
value each month (but not beyond the policy anniversary date when the insured
person is attained age 121). As the amount for which we are at risk at any time
is the death benefit (calculated as of that time) minus your policy account
value at that time, changes in your policy account value resulting from the
performance of your investment options can affect your amount at risk, and as a
result, your cost of insurance. In addition, our current non-guaranteed cost of
insurance rates are zero for policy years in which the insured person's
attained age is 100 or older. Our cost of insurance rates are guaranteed not to
exceed the maximum rates specified in your policy. For most insured persons at
most ages, our current (non-guaranteed) rates are lower than the maximum rates.
However, we have the ability to raise these rates up to the guaranteed maximum
at any time, subject to any necessary regulatory approvals.
The guaranteed maximum cost of insurance rates for gender neutral Incentive
Life Optimizer(R) II policies for insureds who are age 18 or above are based on
the 2001 Commissioner's Standard Ordinary 80% Male, 20% Female, Smoker or
Nonsmoker Ultimate Age Nearest Birthday Mortality Table. The guaranteed maximum
cost of insurance rates for gender neutral Incentive Life Optimizer(R) II
policies for insureds who are under age 18 are based on the 2001 Commissioner's
Standard Ordinary 80% Male, 20% Female Composite Ultimate Age Nearest Birthday
Mortality Tables. For all other policies, for insureds who are age 18 or above,
the guaranteed maximum cost of insurance rates are based on the 2001
Commissioner's Standard Ordinary Male or Female, Smoker or Nonsmoker Ultimate
Age Nearest Birthday Mortality Tables. For insureds who are under age 18, the
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guaranteed maximum cost of insurance rates are based on the 2001 Commissioner's
Standard Ordinary Male or Female Composite Ultimate Age Nearest Birthday
Mortality Tables.
Our cost of insurance rates will generally be lower (except for gender-neutral
policies and in connection with certain employee benefit plans) if the insured
person is a female than if a male. They also will generally be lower for
non-tobacco users than tobacco users and lower for persons that have other
highly favorable health characteristics, as compared to those that do not. On
the other hand, insured persons who present particular health, occupational or
avocational risks may be charged higher cost of insurance rates and other
additional charges as specified in their policies. In addition, the current
(non-guaranteed) rates also vary depending on the duration of the policy (i.e.,
the length of time since the policy was issued).
For policies issued at ages 0-17, an insured person's cost of insurance rate is
not based on that person's status as a tobacco user or non-tobacco user.
Effective with the policy anniversary when that insured person reaches attained
age 18, non-tobacco user cost of insurance rates will be charged for that
person. That insured person may also be eligible for a more favorable rating,
subject to our underwriting rules.
We offer lower rates for non-tobacco users only if they are at least age 18.
You may generally ask us to review the tobacco habits of an insured person
issue age 18 or over in order to change the charge from tobacco user rates to
non-tobacco user rates. The change, if approved, may result in lower future
cost of insurance rates beginning on the effective date of the change to
non-tobacco user rates.
The change will be based upon our general underwriting rules in effect at the
time of application, and may include criteria other than tobacco use status as
well as a definition of tobacco use different from that applicable at the time
this policy was issued.
Similarly, after the first policy year, you may request us to review the
insured person's rating to see if they qualify for a reduction in future cost
of insurance rates. Any such change will be based upon our general underwriting
rules in effect at the time of application, and may include various criteria.
For information concerning possible limitations on any changes, please see
"Other information" in "Tax information" earlier in this prospectus.
The change in rates, if approved, will take effect at the beginning of the
policy month that coincides with or next follows the date we approve your
request. This change may have adverse tax consequences.
For policies with a minimum stated face amount of $25,000 which are issued as a
result of an Option to Purchase Additional Insurance election or a conversion
from a term life policy or rider, our cost of insurance rates also depend on
how large the face amount is at the time we deduct the charge. Generally, under
these circumstances, the current (non-guaranteed) cost of insurance rates are
lower for face amounts of $100,000 and higher. For this purpose, however, we
will take into account all face amount decreases, whatever their cause.
Therefore, a decrease in face amount may cause your cost of insurance rates to
go up.
. MORTALITY AND EXPENSE RISK CHARGE. We will collect a monthly charge for
mortality and expense risk. We are committed to fulfilling our obligations
under the policy and providing service to you over the lifetime of your policy.
Despite the uncertainty of future events, we guarantee that monthly
administrative and cost of insurance deductions from your policy account value
will never be greater than the maximum amounts shown in your policy. In making
this guarantee, we assume the mortality risk that insured persons (as a group)
will live for shorter periods than we estimated. When this happens, we have to
pay a greater amount of death benefit than we expected to pay in relation to
the cost of insurance charges we received. We also assume the expense risks
that the cost of issuing and administering policies will be greater than we
expected. This charge is designed, in part, to compensate us for taking these
risks.
We deduct a monthly charge at an annual rate of 0.85% of the value in your
policy's variable investment options and MSO Segments during the first 8 policy
years, with no charge in policy year 9 and thereafter. We reserve the right to
increase or decrease this charge in the future, although it will never exceed
1.00% during policy years 1 - 10, and 0.50% during policy years 11 and later.
This charge will be calculated at the beginning of each policy month as a
percentage of the amount of the policy account that is then allocated to the
variable investment options and MSO Segments.
. LOAN INTEREST SPREAD. We charge interest on policy loans but credit you with
interest on the amount of the policy account we hold as collateral for the
loan. The loan interest spread is the excess of the interest rate we charge
over the interest rate we credit. The loan interest spread will not exceed 1%.
However, for amounts of policy loans allocated to MSO Segments, the loan
interest spread may be as high as 5% (2% for New York and Oregon policies). We
deduct this charge on each policy anniversary date, or on loan termination, if
earlier. For more information on how this charge is deducted, see "Borrowing
from your policy" under "Accessing your money" earlier in this prospectus. As
with any loan, the interest we charge on the loans is intended, in part, to
compensate us for the time value of the money we are lending and the risk that
you will not repay the loan.
OPTIONAL RIDER CHARGES
If you elect the following riders, the charge for each rider is deducted from
your policy account value on the first day of each policy month that the rider
is in effect. The rider charges are designed to offset the cost of providing
the benefit under the rider. The costs of each of the riders below are
designed, in part, to compensate us for the additional insurance risk we take
on in providing each of these riders and the administrative costs involved in
administering them:
. CHILDREN'S TERM INSURANCE. If you choose this rider, we deduct $0.50 per
$1,000 of rider benefit amount from your policy account value each month until
the insured under the base policy reaches age 65, while the rider is in effect.
The charge for this rider does not vary depending upon the specifics of your
policy. However, we will continue to charge you for the rider, even after all
of your children, stepchildren and legally adopted children have reached age 25
(when a child's coverage under the rider terminates), unless you notify us in
writing that you wish to cancel this rider.
. DISABILITY DEDUCTION WAIVER. If you choose this rider, we deduct an amount
from your policy account value each month until the insured under the base
policy reaches age 65, while the rider is in effect. This amount is between 7%
and 132% of all the other monthly charges (including charges for other riders
elected) deducted
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from your policy account value on a guaranteed basis. The current monthly
charges for this rider may be lower than the maximum monthly charges.
. DISABILITY PREMIUM WAIVER. If you choose this rider, we deduct an amount from
your policy account value each month until the insured under the policy reaches
age 65 and while the rider is in effect. This amount is between $0.01 and $0.60
per $1,000 of initial base policy face amount on a guaranteed basis. We will
establish a similar charge for requested base policy face amount increases. If
you also select certain of the other optional riders available under your
policy, we will deduct additional amounts from your policy account value per
$1,000 of rider benefit amount each month while both the other rider and this
rider are in effect. These amounts are in addition to the charges for the
riders themselves. The current monthly charges for this rider may be lower than
the maximum monthly charges.
. LONG-TERM CARE SERVICES/SM/ RIDER. If you choose this rider without the
Nonforfeiture Benefit, on a guaranteed basis, we may deduct between $0.22 and
$2.67 per $1,000 of the amount for which we are at risk under the rider from
your policy account value each month. If you choose this rider with the
Nonforfeiture Benefit, on a guaranteed basis, we may deduct between $0.25 and
$2.94 per $1,000 of the amount for which we are at risk under the rider. We
will deduct this charge until the insured reaches age 121 while the rider is in
effect, but not when rider benefits are being paid. The amount at risk under
the rider depends on the death benefit option selected under the policy. For
policies with death benefit Option A, the amount at risk for the rider is the
lesser of (a) the current policy face amount, minus the policy account value
(but not less than zero); and (b) the current long-term care specified amount.
For policies with death benefit Option B, the amount at risk for the rider is
the current long-term care specified amount. The current monthly charges for
this rider may be lower than the maximum monthly charges.
If you continue coverage under the Nonforfeiture Benefit, the charge for the
rider will no longer apply.
. OPTION TO PURCHASE ADDITIONAL INSURANCE. If you choose this rider, we deduct
between $0.04 and $0.17 per $1,000 of the Option To Purchase Additional
Insurance from your policy account value each month until the insured under the
base policy reaches age 40 while the rider is in effect.
. CHARITABLE LEGACY RIDER. There is no additional charge if you choose this
rider.
. ENHANCED NO LAPSE GUARANTEE RIDER. There is no additional charge if you
choose this rider.
. CASH VALUE PLUS RIDER. If you choose this rider, we deduct $0.04 per $1,000
of your initial base policy face amount from your policy account value each
month until the earlier of the end of the eighth policy year or termination of
the policy or termination of the rider. The charge for this rider does not vary
depending upon the specifics of your policy. The current monthly charge for
this rider may be lower than the maximum monthly charge of $0.04 per $1,000 of
your initial base policy face amount. You must notify us in writing if you wish
to cancel this rider. Please see "Appendix III: Policy variations" later in
this prospectus for more information on the charge applicable under the prior
version of this rider.
. ADDING THE LIVING BENEFITS RIDER. If you elect the Living Benefits Rider
after the policy is issued, we will deduct $100 from your policy account value
at the time of the transaction. This fee is designed, in part, to compensate us
for the administrative costs involved in processing the request.
. EXERCISE OF OPTION TO RECEIVE A TERMINAL ILLNESS "LIVING BENEFIT." If you
elect to receive a terminal illness "living benefit," we will deduct up to $250
from any living benefit we pay. This fee is designed, in part, to compensate us
for the administrative costs involved in processing the request.
MARKET STABILIZER OPTION(R)
There is a current percentage charge of 1.40% of any policy account value
allocated to each Segment. We reserve the right to increase or decrease the
charge although it will never exceed 2.40%. Of this percentage charge, 0.75%
will be deducted on the Segment Start Date from the amount being transferred
from the MSO Holding Account into the Segment as an up-front charge ("Variable
Index Benefit Charge"), with the remaining 0.65% annual charge (of the current
Segment Account Value) being deducted from the policy account on a monthly
basis during the Segment Term ("Variable Index Segment Account Charge").
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CURRENT NON- GUARANTEED
MSO CHARGES GUARANTEED MAXIMUM
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Variable Index Benefit Charge 0.75% 0.75%
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Variable Index Segment Account Charge 0.65% 1.65%
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Total 1.40% 2.40%
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This fee table applies specifically to the MSO and should be read in
conjunction with the "Tables of the policy charges" under "Risk/ benefit
summary: charges and expenses you will pay" earlier in this prospectus and also
see "Loan interest spread" earlier in this section for information regarding
the "spread" you would pay on any policy loan.
The base policy's mortality and expense risk charge and current non-guaranteed
Customer Loyalty Credit will also be applicable to a Segment Account Value or
any amounts held in the MSO Holding Account. The mortality and expense risk
charge is part of the policy monthly charges. Please see "How we deduct policy
monthly charges during a Segment Term" for more information. The Customer
Loyalty Credit offsets some of the monthly charges.
If a Segment is terminated prior to maturity by policy surrender, or reduced
prior to maturity by monthly deductions (if other funds are insufficient) or by
loans or a Guideline Premium Force-out, we will refund a proportionate amount
of the Variable Index Benefit Charge corresponding to the surrender or
reduction and the time remaining until Segment Maturity. The refund will be
administered as part of the Early Distribution Adjustment process. This refund
will increase your surrender value or remaining Segment Account Value, as
appropriate. Please see Appendix I later in this prospectus for an example and
further information.
Any portion of a loan allocated to an individual Segment will generate a
corresponding Early Distribution Adjustment of the Segment Account Value and be
subject to a higher guaranteed maximum loan spread (2% for policies with a
contract state of New York and Oregon and 5% for other policies).
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CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
. Management fees.
. 12b-1 fees.
. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
. Investment-related expenses, such as brokerage commissions.
These charges are reflected in the daily share price of each portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options and are
reflected in their unit values. Certain portfolios available under the contract
in turn invest in shares of other portfolios of AXA Premier VIP Trust and EQ
Advisors Trust and/or shares of unaffiliated portfolios (collectively, the
"underlying portfolios"). The underlying portfolios each have their own fees
and expenses, including management fees, operating expenses, and investment
related expenses such as brokerage commissions. For more information about
these charges, please refer to the prospectuses for the Trusts.
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12. More information about procedures that apply to your policy
This section provides further detail about certain subjects that are addressed
in the previous pages. The following discussion generally does not repeat the
information already contained in those pages.
DATES AND PRICES AT WHICH POLICY EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your policy will occur. Other portions of this prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
DATE OF RECEIPT. Where this prospectus refers to the day when we receive a
payment, request, election, notice, transfer or any other transaction request
from you, we usually mean the day on which that item (or the last thing
necessary for us to process that item) arrives in complete and proper form at
our Administrative Office or via the appropriate telephone or fax number if the
item is a type we accept by those means. There are two main exceptions: if the
item arrives (1) on a day that is not a business day or (2) after the close of
a business day, then, in each case, we are deemed to have received that item on
the next business day.
BUSINESS DAY. Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). A business day
does not include a day on which we are not open due to emergency conditions
determined by the Securities and Exchange Commission. We may also close early
due to such emergency conditions. We compute unit values for our variable
investment options as of the end of each business day.
PAYMENTS YOU MAKE. The following are reflected in your policy as of the date we
receive them in complete and proper form:
. premium payments received after the policy's investment start date
(discussed below)
. loan repayments and interest payments
REQUESTS YOU MAKE. The following transactions occur as of the date we receive
your request in complete and proper form:
. withdrawals
. tax withholding elections
. face amount decreases that result from a withdrawal
. changes of allocation percentages for premium payments or monthly deductions
. surrenders
. changes of owner
. changes of beneficiary
. transfers from a variable investment option to the guaranteed interest
option
. loans
. transfers among variable investment options
. assignments
. termination of paid up death benefit guarantee
The following transactions occur on your policy's next monthly anniversary that
coincides with or follows the date we approve your request:
. changes in face amount
. election of paid up death benefit guarantee
. changes in death benefit option
. changes of insured person
. restoration of terminated policies
. termination of any additional benefit riders you have elected
AUTOMATIC TRANSFER SERVICE. Transfers pursuant to our automatic transfer
service (dollar-cost averaging) occur as of the first day of each policy month.
If you request the automatic transfer service in your original policy
application, the first transfer will occur as of the first day of the second
policy month after your policy's initial Allocation Date. If you request this
service at any later time, we make the first such transfer as of your policy's
first monthly anniversary that coincides with or follows the date we receive
your request.
ASSET REBALANCING SERVICE. If you request the asset rebalancing service, the
first redistribution will be on the date you specify or the date we receive
your request, if later. However, no rebalancing will occur before your policy's
Allocation Date. Subsequent periodic rebalancings occur quarterly, semiannually
or annually, as you have requested.
DELAY IN CERTAIN CASES. We may delay allocating any payment you make to our
variable investment options, or any transfer, for the same reasons stated in
"Delay of variable investment option proceeds" later in this prospectus. We may
also delay such transactions for any other legally permitted purpose.
PRICES APPLICABLE TO POLICY TRANSACTIONS. If a transaction will increase or
decrease the amount you have in a variable investment option as of a certain
date, we process the transaction using the unit values for that option computed
as of that day's close of business, unless that day is not a business day. In
that case, we use unit values computed as of the next business day's close.
EFFECT OF DEATH OR SURRENDER. You may not make any surrender or partial
withdrawal request after the insured person has died. Also, all insurance
coverage ends on the date as of which we process any request for a surrender.
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POLICY ISSUANCE
REGISTER DATE. When we issue a policy, we assign it a "register date," which
will be shown in the policy. We measure the months, years, and anniversaries of
your policy from your policy's register date.
. If you submit the full minimum initial premium to your financial
professional at the time you sign the application and before the policy is
issued, and we issue the policy as it was applied for (or on a better risk
class than applied for), then the register date will be the later of
(a) the date you signed part I, section D of the policy application or
(b) the date a medical or paramedical professional signed part II of the
policy application.
. In general, if we do not receive your full minimum initial premium at our
Administrative Office before the issue date or, if we issue the policy on a
different (less favorable) basis than you applied for, the register date
initially will appear on your policy as the date the policy is issued;
however, we will move the register date to the date we deliver the policy
provided we received your full minimum initial premium. If your policy was
delivered on the 29th, 30th or 31st of the month, we will move the register
date to the 1st of the following month. In certain circumstances, even if
we issue your policy on a less favorable basis, the premium amount you paid
may be sufficient to cover your full minimum initial premium. In this
event, we will not move the register date to the delivery date. These
procedures are designed to ensure that premiums and charges will commence
on the same date as your insurance coverage. We will determine the interest
rate applicable to the guaranteed interest option based on the register
date. This rate will be applied to funds allocated to the guaranteed
interest option as of the date we receive the full minimum initial premium
at our Administrative Office.
. For Section 1035 exchanges:
. If we issue the policy as it was applied for (or on a better risk class
than applied for), then the register date will be the later of (a) the
date you signed part I, section D of the policy application or (b) the
date a medical professional signed part II of the policy application.
. If we do not receive your full minimum initial premium payment at our
Administrative Office before the issue date or, if we issue the policy on
a different (less favorable) basis than you applied for, the register
date will be the date the policy is issued.
We may also permit an earlier than customary register date (a) for
employer-sponsored cases, to accommodate a common register date for all
employees or (b) to provide a younger age at issue. (A younger age at issue
reduces the monthly charges that we deduct under a policy.) The charges and
deductions commence as of the register date, even when we have permitted an
early register date. We may also permit policy owners to delay a register date
(up to three months) in employer-sponsored cases.
INVESTMENT START DATE. This is the business day your investment first begins to
earn a return for you. Generally, this is the later of: (1) the business day we
receive the full minimum initial premium at our Administrative Office; and
(2) the register date of your policy. Before this date, your initial premium
will be held in a non-interest bearing account.
COMMENCEMENT OF INSURANCE COVERAGE. You must give the full minimum initial
premium to your financial professional on or before the day the policy and all
amendments are delivered to you. No insurance under your policy will take
effect unless (1) the insured person is still living at the time such payment
and all delivery requirements are completed and (2) the information in the
application continues to be true and complete, without material change, as of
the date the policy and all amendments are delivered to you and all delivery
requirements have been completed and the full minimum initial premium is paid.
If you submit the full minimum initial premium with your application, we may,
subject to certain conditions, provide a limited amount of temporary insurance
on the proposed insured person. You may request and review a copy of our
temporary insurance agreement for more information about the terms and
conditions of that coverage.
NON-ISSUANCE. If, after considering your application, we decide not to issue a
policy, we will refund any premium you have paid, without interest.
AGE; AGE AT ISSUE. Unless the context in this prospectus requires otherwise, we
consider the insured person's "age" during any policy year to be his or her age
on his or her birthday nearest to the beginning of that policy year. For
example, the insured person's age for the first policy year ("age at issue") is
that person's age on whichever birthday is closer to (i.e., before or after)
the policy's register date.
WAYS TO MAKE PREMIUM AND LOAN PAYMENTS
CHECKS AND MONEY ORDERS. Premiums or loan payments generally must be paid by
check or money order drawn on a U.S. bank in U.S. dollars and made payable to
"AXA Equitable Life Insurance Company."
We prefer that you make each payment to us with a single check drawn on your
business or personal bank account. We also will accept a single money order,
bank draft or cashier's check payable directly to AXA Equitable, although we
must report such "cash equivalent" payments to the Internal Revenue Service
under certain circumstances. Cash and travelers' checks, or any payments in
foreign currency, are not acceptable. We will accept third-party checks payable
to someone other than AXA Equitable and endorsed over to AXA Equitable only
(1) as a direct payment from a qualified retirement plan or (2) if they are
made out to a trustee who owns the policy and endorses the entire check
(without any refund) as a payment to the policy.
ASSIGNING YOUR POLICY
You may assign (transfer) your rights in a policy to someone else as collateral
for a loan, to effect a change of ownership or for some other reason.
Collateral assignments may also sometimes be used in connection with dividing
the benefits of the policy under a split-dollar arrangement, which will also
have its own tax consequences. A copy of the assignment must be forwarded to
our Administrative Office. We are not responsible for any payment we make or
any action we take before we receive notice of the assignment or for the
validity of the assignment. An absolute assignment is a change of ownership.
Certain transfers for value may subject you to income tax and penalties and
cause the death benefit to lose its income-tax free treatment. Further, a gift
of a policy that has a loan outstanding may be treated as part gift and part
transfer for value, which could result in both gift
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tax and income tax consequences. The IRS issued regulations in both 2002 and
2003 concerning split-dollar arrangements, including policies subject to
collateral assignments. The regulations provide both new and interim guidance
as to the taxation of such arrangements. These regulations address taxation
issues in connection with arrangements which are compensatory in nature,
involve a shareholder and corporation, or a donor and donee. See also
discussion under "Split-dollar and other employee benefit programs" and
"Estate, gift, and generation-skipping taxes" in the "Tax information" section
of this prospectus. You should consult your tax advisor prior to making a
transfer or assignment.
YOU CAN CHANGE YOUR POLICY'S INSURED PERSON
Your policy has the Substitution of Insured Person Rider and after the policy's
second year, we will permit you to request that a new insured person replace
the existing one subject to our rules then in effect. This requires that you
provide us with adequate evidence that the proposed new insured person meets
our requirements for insurance. Other requirements are outlined in your policy.
Upon making this change, the monthly insurance charges we deduct will be based
on the new insured person's insurance risk characteristics. In addition, any
no-lapse guarantee and Long-Term Care Services/SM/ Rider will terminate. It may
also affect the face amount that a policy will have if you subsequently elect
the paid up death benefit guarantee. The change of insured person will not,
however, affect the surrender charge computation for the amount of coverage
that is then in force.
Substituting the insured person is a taxable event and may, depending upon
individual circumstances, have other tax consequences as well. For example, the
change could cause the policy to be a "modified endowment contract" or to fail
the Internal Revenue Code's definition of "life insurance," or in some cases
require that we also distribute certain amounts to you from the policy. See
"Tax information" earlier in this prospectus. You should consult your tax
advisor prior to substituting the insured person. As a condition to
substituting the insured person we may require you to sign a form acknowledging
the potential tax consequences. In no event, however, will we permit a change
that we believe causes your policy to fail the definition of life insurance or
causes the policy to lose its ability to be tested under the 2001 CSO tables.
See "Other information" under "Tax information" earlier in this prospectus.
Also, if the paid up death benefit guarantee is in effect or your policy is on
loan extension, you may not request to substitute the insured person.
REQUIREMENTS FOR SURRENDER REQUESTS
Your surrender request must include the policy number, your name, your taxpayer
identification number, the name of the insured person, and the address where
proceeds should be mailed. The request must be signed by you, as the owner, and
by any joint owner, collateral assignee or irrevocable beneficiary. We may also
require you to complete specific tax forms, or provide a representation that
your policy is not being exchanged for another life or annuity contract.
GENDER-NEUTRAL POLICIES
Congress and various states have from time to time considered legislation that
would require insurance rates to be the same for males and females. In
addition, employers and employee organizations should consider, in consultation
with counsel, the impact of Title VII of the Civil Rights Act of 1964 on the
purchase of Incentive Life Optimizer(R) II in connection with an
employment-related insurance or benefit plan. In a 1983 decision, the United
States Supreme Court held that, under Title VII, optional annuity benefits
under a deferred compensation plan could not vary on the basis of sex.
There will be no distinctions based on sex in the cost of insurance rates for
Incentive Life Optimizer(R) II policies sold in Montana. We will also make such
gender-neutral policies available on request in connection with certain
employee benefit plans. Cost of insurance rates applicable to a gender-neutral
policy will not be greater than the comparable male rates under a gender
specific Incentive Life Optimizer(R) II policy.
FUTURE POLICY EXCHANGES
We may at some future time, under certain circumstances and subject to
applicable law, allow the current owner of this policy to exchange it for a
universal life policy we are then offering. The exchange may or may not be
advantageous to you, based on all of the circumstances, including a comparison
of contractual terms and conditions and charges and deductions. We will provide
additional information upon request at such time as exchanges may be permitted.
BROKER TRANSACTION AUTHORITY
After your policy has been issued, we may accept transfer requests and changes
to your premium allocation instructions or fund transfers by telephone, mail,
facsimile or electronically, and requests for automatic transfer service, asset
rebalancing service and changes to the minimum growth cap rate for MSO in
writing, by mail or facsimile, from your financial professional, provided that
we have your prior written authorization to do so on file. Accordingly, AXA
Equitable will rely on the stated identity of the person placing instructions
as authorized to do so on your behalf. AXA Equitable will not be liable for any
claim, loss, liability or expenses that may arise out of such instructions. AXA
Equitable will continue to rely on this authorization until it receives your
written notification at its processing office that you have withdrawn this
authorization. AXA Equitable may change or terminate telephone or electronic or
overnight mail transfer procedures at any time without prior notice and
restrict facsimile, internet telephone and other electronic transfer services
because of disruptive transfer activity. AXA Equitable may terminate any such
authorization at any time without prior notice.
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13. More information about other matters
ABOUT OUR GENERAL ACCOUNT
This policy is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a policy's account value or any guaranteed benefits with which the policy
was issued. AXA Equitable is solely responsible to the policy owner for the
policy's account value and such guaranteed benefits. The general obligations
and any guaranteed benefits under the policy are supported by AXA Equitable's
general account and are subject to AXA Equitable's claims paying ability. An
owner should look to the financial strength of AXA Equitable for its claims
paying ability. Assets in the general account are not segregated for the
exclusive benefit of any particular policy or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the New York
State Department of Financial Services and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business.
Interests under the policies in the general account have not been registered
and are not required to be registered under the Securities Act of 1933 because
of exemptions and exclusionary provisions that apply. The general account is
not required to register as an investment company under the Investment Company
Act of 1940 and it is not registered as an investment company under the
Investment Company Act of 1940. The policy is a "covered security" under the
federal securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities law relating to the accuracy and completeness of statements
made in prospectuses.
TRANSFERS OF YOUR POLICY ACCOUNT VALUE
TRANSFERS NOT IMPLEMENTED. If a request cannot be fully administered, only the
part that is in good order will be processed. Any part of the request that
cannot be processed will be denied and an explanation will be provided to you.
This could occur, for example, where the request does not comply with our
transfer limitations, or where you request transfer of an amount greater than
that currently allocated to an investment option.
Similarly, the automatic transfer service will terminate immediately if:
(1) your amount in the EQ/Money Market option is insufficient to cover the
automatic transfer amount; (2) your policy is in a grace period; (3) we receive
notice of the insured person's death; or (4) you have either elected the paid
up death benefit guarantee or your policy is placed on loan extension.
Similarly, the asset rebalancing program will terminate if either (2), (3) or
(4) occurs.
DISRUPTIVE TRANSFER ACTIVITY. You should note that the policy is not designed
for professional "market timing" organizations, or other organizations or
individuals engaging in a market timing strategy. The policy is not designed to
accommodate programmed transfers, frequent transfers or transfers that are
large in relation to the total assets of the underlying portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a portfolio to maintain larger amounts of cash or to liquidate
portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying portfolios for more information on how
portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio
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performance will be affected by such activity; and (3) the design of market
timing procedures involves inherently subjective judgments, which we seek to
make in a fair and reasonable manner consistent with the interests of all
policy owners.
We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each portfolio on a daily
basis. On any day when a portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us policy
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a policy is identified in connection with potentially disruptive transfer
activity for the first time, a letter is sent to the policy owner explaining
that AXA Equitable has a policy against disruptive transfer activity and that
if such activity continues, certain transfer privileges may be eliminated. If
and when the policy owner is identified a second time as engaged in potentially
disruptive transfer activity under the policy, we currently prohibit the use of
voice, fax and automated transaction services. We currently apply such action
for the remaining life of each affected policy. We or a trust may change the
definition of potentially disruptive transfer activity, the monitoring
procedures and thresholds, any notification procedures, and the procedures to
restrict this activity. Any new or revised policies and procedures will apply
to all policy owners uniformly. We do not permit exceptions to our policies
restricting disruptive transfer activity.
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our policy owners, we will work with the
unaffiliated trust to review policy owner trading activity. Each trust reserves
the right to reject a transfer that it believes, in its sole discretion, is
disruptive (or potentially disruptive) to the management of one of its
portfolios. Please see the prospectuses for the trusts for more information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by policy owners. As of the date of this
prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the policy owner.
Policy owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, policy owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
policy owners may be treated differently than others, resulting in the risk
that some policy owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
TELEPHONE AND INTERNET REQUESTS
If you are a properly authorized person, you may make transfers between
investment options over the Internet as described earlier in this prospectus in
"How to make transfers" under "Transferring your money among our investment
options."
Also, you may make the following additional types of requests by calling the
number under "By Phone:" in "How to reach us" from a touch-tone phone, if the
policy is individually owned and you are the owner, or through axa.com or
us.axa.com for those outside the U.S. if you are the individual owner:
. changes of premium allocation percentages
. changes of address
. request forms and statements
. to request a policy loan (loan requests cannot be made online by corporate
policy owners)
. enroll for electronic delivery and view statements/documents online
. to pay your premium or make a loan repayment
For security purposes, all telephone requests are automatically tape-recorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine.
If you wish to enroll through axa.com or us.axa.com for those outside the U.S.,
you must first agree to the terms and conditions set forth in our axa.com or
us.axa.com for those outside the U.S. Online Services Agreement, which you can
find at our website. We will send you a confirmation letter by first class
mail. Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
transactions. We will assume that all instructions received through axa.com or
us.axa.com for those outside the U.S., are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to axa.com
or us.axa.com for those outside the U.S., if we have reason to believe the
instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet
transactions if we have reason to believe that the request compromises the
general security and/or integrity of our automated systems (see discussion of
"Disruptive transfer activity" above).
Any telephone, Internet or fax transaction request that is not completed by the
close of a business day (which is usually 4:00 p.m.
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Eastern Time) will be processed as of the next business day. During times of
extreme market activity, or for other reasons, you may be unable to contact us
to make a telephone or Internet request. If this occurs, you should submit a
written transaction request to our Administrative Office. We reserve the right
to discontinue telephone or Internet transactions, or modify the procedures and
conditions for such transactions, without notifying you, at any time.
CYBERSECURITY
We rely heavily on interconnected computer systems and digital data to conduct
our variable life insurance product business. Because our variable life
insurance product business is highly dependent upon the effective operation of
our computer systems and those of our business partners, our business is
vulnerable to disruptions from utility outages, and susceptible to operational
and information security risks resulting from information systems failure
(e.g., hardware and software malfunctions), and cyber-attacks. These risks
include, among other things, the theft, misuse, corruption and destruction of
data maintained online or digitally, interference with or denial of service,
attacks on websites and other operational disruption and unauthorized use or
abuse of confidential customer information. Such systems failures and
cyber-attacks affecting us, any third party administrator, the underlying
funds, intermediaries and other affiliated or third-party service providers may
adversely affect us and your policy account value. For instance, systems
failures and cyber-attacks may interfere with our processing of policy
transactions, including the processing of orders from our website or with the
underlying funds, impact our ability to calculate your policy account value,
cause the release and possible destruction of confidential customer or business
information, impede order processing, subject us and/or our service providers
and intermediaries to regulatory fines and financial losses and/or cause
reputational damage. Cybersecurity risks may also impact the issuers of
securities in which the underlying funds invest, which may cause the funds
underlying your policy to lose policy account value. While there can be no
assurance that we or the underlying funds or our service providers will avoid
losses affecting your policy due to cyber-attacks or information security
breaches in the future, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
SUICIDE AND CERTAIN MISSTATEMENTS
If an insured person commits suicide within certain time periods, the amount of
death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of an insured person, we will adjust
the amount of any death benefit (and certain rider benefits), as described in
the policy (or rider).
WHEN WE PAY POLICY PROCEEDS
GENERAL. We will generally pay any death benefit, surrender, withdrawal, or
loan within seven days after we receive the request and any other required
items.
CLEARANCE OF CHECKS. We reserve the right to defer payment of that portion of
your policy account value that is attributable to a premium payment or loan
repayment made by check for a reasonable period of time (not to exceed 15 days)
to allow the check to clear the banking system.
DELAY OF GUARANTEED INTEREST OPTION PROCEEDS. We also have the right to defer
payment or transfers of amounts out of our guaranteed interest option for up to
six months. If we delay more than 30 days in paying you such amounts, we will
pay interest of at least 3% per year from the date we receive your request.
DELAY OF VARIABLE INVESTMENT OPTION PROCEEDS. We reserve the right to defer
payment of any death benefit, transfer, loan or other distribution that is
derived from a variable investment option if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings) or trading on that
exchange is restricted; (b) the SEC has declared that an emergency exists, as a
result of which disposal of securities is not reasonably practicable or it is
not reasonably practicable to fairly determine the policy account value; or
(c) the law permits the delay for the protection of owners. If we need to defer
calculation of values for any of the foregoing reasons, all delayed
transactions will be processed at the next available unit values.
DELAY TO CHALLENGE COVERAGE. We may challenge the validity of your insurance
policy or any rider based on any material misstatements in an application you
have made to us. We cannot make such challenges, however, beyond certain time
limits set forth in the policy or rider. If the insured person dies within one
of these limits, we may delay payment of any proceeds until we decide whether
to challenge the policy.
CHANGES WE CAN MAKE
In addition to any of the other changes described in this prospectus, we have
the right to modify how we or Separate Account FP operate. For example, we have
the right to:
. combine two or more variable investment options or withdraw assets relating
to Incentive Life Optimizer(R) II from one investment option and put them
into another;
. end the registration of, or re-register, Separate Account FP under the
Investment Company Act of 1940;
. operate Separate Account FP under the direction of a "committee" or
discharge such a committee at any time;
. restrict or eliminate any voting rights or privileges of policy owners (or
other persons) that affect Separate Account FP;
. operate Separate Account FP, or one or more of the variable investment
options, in any other form the law allows. This includes any form that
allows us to make direct investments, in which case we may charge Separate
Account FP an advisory fee. We may make any legal investments we wish for
Separate Account FP. In addition, we may disapprove any change in
investment advisers or in investment policy unless a law or regulation
provides differently.
If we take any action that results in a material change in the underlying
investments of a variable investment option, we will notify you to the extent
required by law. We may, for example, cause the variable investment option to
invest in a mutual fund other than, or in addition to, the Trusts. If you then
wish to transfer the amount you have in that option to another investment
option, you may do so.
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MORE INFORMATION ABOUT OTHER MATTERS
We may make any changes in the policy or its riders, require additional premium
payments, or make distributions from the policy to the extent we deem necessary
to ensure that your policy qualifies or continues to qualify as life insurance
for tax purposes. Any such change will apply uniformly to all policies that are
affected. We will give you written notice of such changes. Subject to all
applicable legal requirements, we also may make other changes in the policies
that do not reduce any net cash surrender value, death benefit, policy account
value, or other accrued rights or benefits.
Whether to make any of the above discussed changes is generally within our
discretion, although some such changes might require us to obtain regulatory or
policy owner approval. Whether regulatory or policy owner approval is required
would depend on the nature of the change and, in many cases, the manner in
which the change is implemented. You should not assume, therefore, that you
necessarily will have an opportunity to approve or disapprove any such changes.
We will, of course, comply with applicable legal requirements, including notice
to or approval by policy owners where required in particular cases.
It is not possible to foresee all of the circumstances under which we may find
it necessary or appropriate to exercise our right to make changes. Such
circumstances could, however, include changes in law, or interpretations
thereof; changes in financial or investment market conditions; changes in
accepted methods of conducting operations in the relevant market; or a desire
to achieve material operating economies or efficiencies.
REPORTS WE WILL SEND YOU
Shortly after the end of each year of your policy, we will send you a report
that includes information about your policy's current death benefit, policy
account value, cash surrender value (i.e., policy account value minus any
current surrender charge), policy loans, policy transactions and amounts of
charges deducted. We will send you individual notices to confirm your premium
payments, loan repayments, transfers and certain other policy transactions.
Please promptly review all statements and confirmations and notify us
immediately at 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside
of the U.S.) if there are any errors.
DISTRIBUTION OF THE POLICIES
The policies are distributed by both AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account FP. The
offering of the policies is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Equitable Holdings, Inc. Their principal business
address is 1290 Avenue of the Americas, New York, NY 10104. The Distributors
are registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The policies are sold by financial professionals of AXA Advisors and its
affiliates. The policies are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with AXA
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on policies sold.
AXA Equitable may also make additional payments to the Distributors and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. All payments will be in compliance with all applicable FINRA
rules and other laws and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its policies, none of
the compensation paid to the Distributors or the Selling broker-dealers
discussed in this section of the prospectus are imposed as separate fees or
charges under your policy. AXA Equitable, however, intends to recoup amounts it
pays for distribution and other services through the fees and charges of the
policy and payments it receives for providing administrative, distribution and
other services to the Portfolios. For information about the fees and charges
under the policy, see "Risk/benefit summary: Charges and expenses you will pay"
and "More information about certain policy charges" earlier in this prospectus.
As used below, the "target premium" is actuarially determined for each policy,
based on that policy's specific characteristics, as well as the policy's face
amount and Distributor, among other factors.
AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors
based on premium payments made on the policies sold through AXA Advisors
("premium-based compensation"). The premium-based compensation will generally
not exceed 99% of premiums you pay up to one target premium in your policy's
first year, plus 8.5% of all other premiums you pay in your policy's first
year; plus 5.8% of all other premiums you pay in policy years two through five;
plus 3.8% of all other premiums you pay in policy years six through ten, and
2.5% thereafter. AXA Advisors, in turn, may pay a portion of the premium-based
compensation received from AXA Equitable to the AXA Advisors financial
professional and/or the Selling broker-dealer making the sale. Your AXA
Advisors financial professional or a Selling broker-dealer may elect to receive
premium-based compensation in combination with ongoing annual compensation
based on a percentage of the unloaned account value of the policy sold
("asset-based compensation"). Total compensation paid to a financial
professional or a Selling broker-dealer electing to receive both premium-based
and asset-based compensation could over time exceed the total compensation that
would otherwise be paid on the basis of premiums alone. The compensation paid
by AXA Advisors varies among financial professionals and among Selling
broker-dealers. AXA Advisors also pays a portion of the compensation it
receives to its managerial personnel. When a policy is sold by a Selling
broker-dealer, the Selling broker-dealer, not AXA Advisors, determines the
amount and type of compensation paid to the Selling broker-dealer's financial
professional for the sale of the policy. Therefore, you should contact your
financial professional for information about the compensation he or she
receives and any related incentives, as described below.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their policy.
AXA Advisors also pays its financial professionals and managerial personnel
other types of compensation including service fees, expense allowance payments
and health and retirement benefits. AXA Advisors also pays its financial
professionals, managerial personnel and Selling broker-dealers sales bonuses
(based on selling
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MORE INFORMATION ABOUT OTHER MATTERS
certain products during specified periods) and persistency bonuses. AXA
Advisors may offer sales incentive programs to financial professionals and
Selling broker-dealers who meet specified production levels for the sales of
both AXA Equitable policies and policies offered by other companies. These
incentives provide non-cash compensation such as stock options awards and/or
stock appreciation rights, expense-paid trips, expense-paid education seminars
and merchandise.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of premium-based compensation and/or asset-based
compensation for the sale of an AXA Equitable policy than it pays for the sale
of a policy or other financial product issued by a company other than AXA
Equitable. AXA Advisors may pay higher compensation on certain products in a
class than others based on a group or sponsored arrangement, or between older
and newer versions or series of the same policy. This practice is known as
providing "differential compensation." Differential compensation may involve
other forms of compensation to AXA Advisors personnel. Certain components of
the compensation paid to managerial personnel are based on whether the sales
involve AXA Equitable policies. Managers earn higher compensation (and credits
toward awards and bonuses) if the financial professionals they manage sell a
higher percentage of AXA Equitable policies than products issued by other
companies. Other forms of compensation provided to its financial professionals
and/or managerial personnel include health and retirement benefits, expense
reimbursements, marketing allowances and premium-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
policies and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable policy over a policy or
other financial product issued by a company not affiliated with AXA Equitable.
However, under applicable rules of FINRA and other federal and state regulatory
authorities, AXA Advisors financial professionals may only recommend to you
products that they reasonably believe are suitable for you and, for certain
accounts depending on applicable rules, that are in your best interest, based
on the facts that you have disclosed as to your other security holdings,
financial situation and needs. In making any recommendation, financial
professionals of AXA Advisors may nonetheless face conflicts of interest
because of the differences in compensation from one product category to
another, and because of differences in compensation among products in the same
category. For more information, contact your financial professional.
AXA DISTRIBUTORS COMPENSATION. AXA Equitable pays premium-based and asset-based
compensation (together, "compensation") to AXA Distributors. Premium-based
compensation is paid based on AXA Equitable policies sold through AXA
Distributors' Selling broker-dealers. Asset-based compensation is paid based on
the unloaned account value of policies sold through certain of AXA
Distributor's Selling broker-dealers. Premium-based compensation will generally
not exceed 135% of the premiums you pay up to one target premium in your
policy's first year; plus 5% of all other premiums you pay in your policy's
first year; plus 2.8% of all other premiums you pay in policy years two through
ten, and 2% thereafter. Asset-based compensation up to 0.15% in policy years
6-10 and up to 0.10% in policy years 11 and later may also be paid. AXA
Distributors, in turn, pays a portion of the compensation it receives to the
Selling broker-dealer making the sale. The compensation paid by AXA
Distributors varies among Selling broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the amount and type
of compensation paid to the Selling broker-dealer's financial professional for
the sale of the policy. Therefore, you should contact your financial
professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
These payments above also include compensation to cover operating expenses and
marketing services under the terms of AXA Equitable's distribution agreements
with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. AXA
Distributors may pay, out of its assets, certain Selling broker-dealers and
other financial intermediaries additional compensation in recognition of
services provided or expenses incurred. AXA Distributors may also pay certain
Selling broker-dealers or other financial intermediaries additional
compensation for enhanced marketing opportunities and other services (commonly
referred to as "marketing allowances"). Services for which such payments are
made may include, but are not limited to, the preferred placement of AXA
Equitable products on a company and/or product list; sales personnel training;
product training; business reporting; technological support; due diligence and
related costs; advertising, marketing and related services; conference; and/or
other support services, including some that may benefit the policy owner.
Payments may be based on ongoing sales, on the aggregate account value
attributable to policies sold through a Selling broker-dealer or such payments
may be a fixed amount. For certain selling broker-dealers, AXA Distributors
increases the marketing allowance as certain sales thresholds are met. AXA
Distributors may also make fixed payments to Selling broker-dealers, for
example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable policies exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable policies over policies and other products
issued by other companies. Not all Selling broker-dealers receive additional
payments, and the payments vary among Selling broker-dealers. The list below
includes the names of Selling broker-dealers that we are aware (as of
December 31, 2018) received additional payments. These additional payments
ranged from $536.67 to $6,370,912.47. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling broker-dealers to promote the sale of AXA
Equitable policies over policies and other products issued by other companies.
The list below includes any such Selling broker-dealer. For more information,
ask your financial professional.
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MORE INFORMATION ABOUT OTHER MATTERS
1st Global Capital Corp.
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Securities, Inc.
Cambridge Investment Research
Capital Investment Group
Centaurus Financial, Inc.
CETERA Financial Group
Citigroup Global Markets, Inc.
Citizens Investment Services
Commonwealth Financial Network
Community America Financial Solution
CUNA Brokerage Services
CUSO Financial Services, L.P.
DPL Financial Partners
Equity Services Inc.
Farmer's Financial Solution
Geneos Wealth Management
Gradient Securities, LLC
H. Beck, Inc.
H.D. Vest Investment Securities, Inc.
Huntleigh Securities Corp.
Independent Financial Group, LLC
Infinex Investments Inc.
Investment Professionals, Inc.
Janney Montgomery Scott LLC
Kestra Investment Services, LLC
Key Investment Services LLC
Ladenburg Thalmann Advisor Network, LLC
Lincoln Financial Advisors Corp.
Lincoln Financial Securities Corp.
Lincoln Investment Planning
Lion Street Financial
LPL Network
Lucia Securities, LLC
MML Investors Services, LLC
Morgan Stanley Smith Barney
Mutual of Omaha Investment Services, Inc.
Park Avenue Securities, LLC
PlanMember Securities Corp.
PNC Investments
Primerica Financial Services, Inc.
Prospera Financial Services
Questar Capital Corporation
Raymond James
RBC Capital Markets Corporation
Robert W Baird & Company
Santander Securities Corp.
SIGMA Financial Corporation
Signator Investors, Inc.
The Advisor Group (AIG)
U.S. Bank Center
UBS Financial Services, Inc.
Valmark Securities, Inc.
Voya Financial Advisors, Inc.
Wells Fargo
LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a policy owner's interest in Separate Account FP, nor would any of these
proceedings be likely to have a material adverse effect on Separate Account FP,
our ability to meet our obligations under the policies, or the distribution of
the policies.
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14. Financial statements of Separate Account FP and AXA Equitable
The financial statements of Separate Account FP, as well as the consolidated
financial statements of AXA Equitable, are in the Statement of Additional
Information ("SAI").
The financial statements of AXA Equitable have relevance for the policies only
to the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the policies. You may request an SAI by writing to our
Administrative Office or by calling 1-800-777-6510 (for U.S. residents) or
1-704-341-7000 (outside of the U.S.) and requesting to speak with a customer
service representative.
77
FINANCIAL STATEMENTS OF SEPARATE ACCOUNT FP AND AXA EQUITABLE
15. Incorporation of certain documents by reference
AXA Equitable's Annual Report on Form 10-K for the period ended December 31,
2018 (the "Annual Report") is considered to be part of this prospectus because
it is incorporated by reference.
AXA Equitable files reports and other information with the SEC, as required by
law. You may read and copy this information at the SEC's public reference
facilities at Room 1580, 100 F Street, NE, Washington, DC 20549, or by
accessing the SEC's website at www.sec.gov. The public may obtain information
on the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. Under the Securities Act of 1933, AXA Equitable has filed with
the SEC a registration statement relating to the Market Stabilizer Option(R)
(the "Registration Statement"). This prospectus has been filed as part of the
Registration Statement and does not contain all of the information set forth in
the Registration Statement.
After the date of this prospectus and before we terminate the offering of the
securities under the Registration Statement, all documents or reports we file
with the SEC under the Securities Exchange Act of 1934 ("Exchange Act"), will
be considered to become part of this prospectus because they are incorporated
by reference.
Any statement contained in a document that is or becomes part of this
prospectus, will be considered changed or replaced for purposes of this
prospectus if a statement contained in this prospectus changes or is replaced.
Any statement that is considered to be a part of this prospectus because of its
incorporation will be considered changed or replaced for the purpose of this
prospectus if a statement contained in any other subsequently filed document
that is considered to be part of this prospectus changes or replaces that
statement. After that, only the statement that is changed or replaced will be
considered to be part of this prospectus.
We file the Registration Statement and our Exchange Act documents and reports,
including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
electronically according to EDGAR under CIK No.0000727920. The SEC maintains a
website that contains reports, proxy and information statements, and other
information regarding registrants that file electronically with the SEC. The
address of the site is www.sec.gov.
Upon written or oral request, we will provide, free of charge, to each person
to whom this prospectus is delivered, a copy of any or all of the documents
considered to be part of this prospectus because they are incorporated herein.
In accordance with SEC rules, we will provide copies of any exhibits
specifically incorporated by reference into the text of the Exchange Act
reports (but not any other exhibits). Requests for documents should be directed
to AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York,
New York 10104. Attention: Corporate Secretary (telephone: (212) 554-1234). You
can access our website at www.axa.com.
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
16. Personalized illustrations
ILLUSTRATIONS OF POLICY BENEFITS
HYPOTHETICAL AND PERSONALIZED ILLUSTRATIONS. Illustrations are intended to show
how different fees, charges and rates of return can affect the values available
under a policy. Illustrations are based upon characteristics of a hypothetical
insured person as well as other assumed factors. This type of illustration is
called a HYPOTHETICAL ILLUSTRATION. Illustrations can also be based upon some
of the characteristics of the insured person under your policy as well as some
other policy feature choices you make such as the face amount, death benefit
option, premium payment amounts and assumed rates of return (within limits).
This type of illustration is called a PERSONALIZED ILLUSTRATION. NO
ILLUSTRATION WILL EVER SHOW YOU THE ACTUAL VALUES AVAILABLE UNDER YOUR POLICY
AT ANY GIVEN POINT IN TIME. This is because many factors affect these values
including: (i) the insured person's characteristics; (ii) policy features you
choose; (iii) actual premium payments you make; (iv) loans or withdrawals you
make; and (v) actual rates of return (including the actual fees and expenses)
of the underlying portfolios in which your cash value is invested. Each
hypothetical or personalized illustration is accompanied by an explanation of
the assumptions on which that illustration is based. Because, as discussed
below, these assumptions may differ considerably, you should carefully review
all of the disclosure that accompanies each illustration.
DIFFERENT KINDS OF ILLUSTRATIONS. Both the hypothetical illustrations in this
prospectus and personalized illustrations can reflect the investment management
fees and expenses incurred in 2018 (or expected to be incurred in 2019, if such
amount is expected to be higher) of the available underlying portfolios in
different ways. An ARITHMETIC ILLUSTRATION uses the straight average of all of
the available underlying portfolios' investment management fees and expenses. A
WEIGHTED ILLUSTRATION computes the average of investment management fees and
expenses based upon the aggregate assets in the Portfolios at the end of 2018.
You may request a weighted illustration that computes the average of investment
management fees and expenses of all portfolios. If you request, a weighted
illustration can also illustrate an assumed percentage allocation of policy
account values among the available underlying portfolios. A FUND SPECIFIC
ILLUSTRATION uses only the investment management fees and expenses of a
specific underlying portfolio. A HISTORICAL ILLUSTRATION reflects the actual
performance of one of the available underlying portfolios during a stated
period. When reviewing a weighted or fund specific illustration you should keep
in mind that the values shown may be higher than the values shown in other
illustrations because the fees and expenses that are assumed may be lower than
those assumed in other illustrations. When reviewing an historical illustration
you should keep in mind that values based upon past performance are no
indication of what the values will be based on future performance. You may also
request a personalized illustration of the guaranteed interest option and the
MSO that assumes a portion of net premiums allocated to the guaranteed interest
option and MSO.
THE EFFECT OF THE EXPENSE LIMITATION ARRANGEMENTS. The illustrations in this
prospectus do not reflect the expense limitation arrangements. Personalized
illustrations reflect the expense limitation arrangements that are in effect
with respect to certain of the Portfolios. If these fees and expenses were not
reduced to reflect the expense limitation arrangements, the values in the
personalized illustrations would be lower.
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PERSONALIZED ILLUSTRATIONS
Appendix I: MSO Early Distribution Adjustment Examples
HYPOTHETICAL EARLY DISTRIBUTION ADJUSTMENT EXAMPLES
A. EXAMPLES OF EARLY DISTRIBUTION ADJUSTMENT TO DETERMINE SEGMENT DISTRIBUTION
VALUE
The following examples represent a policy owner who has invested in both
Segments 1 and 2. They are meant to show how much value is available to a
policy owner when there is a full surrender of the policy by the policy owner
or other full distribution from these Segments as well as the impact of Early
Distribution Adjustments on these Segments. The date of such hypothetical
surrender or distribution is the Valuation Date specified below and, on that
date, the examples assume 9 months remain until Segment 1's maturity date and 3
months remain until Segment 2's maturity date.
Explanation of formulas and derivation of Put Option Factors is provided in
notes (1)-(3) below.
------------------------------------------------------------------------------------------------------------------------
SEGMENT 1 SEGMENT 2
DIVISION OF MSO INTO (DISTRIBUTION AFTER (DISTRIBUTION AFTER
SEGMENTS 3 MONTHS) 9 MONTHS) TOTAL
------------------------------------------------------------------------------------------------------------------------
Start Date 3rd Friday of July, Calendar Year Y 3rd Friday of January, Calendar Year Y
------------------------------------------------------------------------------------------------------------------------
Maturity Date 3rd Friday of July,
Calendar Year Y+1 3rd Friday of January, Calendar Year Y+1
------------------------------------------------------------------------------------------------------------------------
Segment Term 1 year 1 year
------------------------------------------------------------------------------------------------------------------------
Valuation Date 3rd Friday of 3rd Friday of
October, Calendar October, Calendar
Year Y Year Y
------------------------------------------------------------------------------------------------------------------------
INITIAL SEGMENT ACCOUNT 1,000 1,000 2,000
------------------------------------------------------------------------------------------------------------------------
Variable Index Benefit Charge 0.75% 0.75%
------------------------------------------------------------------------------------------------------------------------
Remaining Segment Term 9 months / 12 3 months / 12
months = 9/12 = 0.75 months = 3/12 = 0.25
------------------------------------------------------------------------------------------------------------------------
|
EXAMPLE I - THE INDEX IS DOWN
10% AT THE TIME OF THE EARLY
DISTRIBUTION ADJUSTMENT
|
------------------------------------------------------------------------------------------------
CHANGE IN INDEX VALUE -10% -10% TOTAL
------------------------------------------------------------------------------------------------
Put Option Factor 0.020673 0.003425
------------------------------------------------------------------------------------------------
Put Option Put Option
Component: Component:
1000 * 0.020673 = 1000 * 0.003425 =
20.67 3.43
Charge Refund Charge Refund
Component: Component:
1000 * 0.25 *
1000 * 0.75 * (0.0075 /(1 -0.0075)) (0.0075 / (1
= 5.67 -0.0075)) = 1.89
Total EDA: Total EDA:
20.67 - 5.67 = 15.00 3.43 - 1.89 = 1.54
Early Distribution Adjustment 16.54
------------------------------------------------------------------------------------------------
SEGMENT DISTRIBUTION VALUE 1000 - 15.00 =
985.00 1000 - 1.54 = 998.46 1,983.46
------------------------------------------------------------------------------------------------
% change in principal due to -2.067% -0.343%
the Put Option Component
------------------------------------------------------------------------------------------------
% change in principal due to 0.567% 0.189%
the Charge Refund Component
------------------------------------------------------------------------------------------------
Total % change in Segment -1.50% -0.15%
Account Value due to the EDA
------------------------------------------------------------------------------------------------
|
I-1
STATEMENT OF ADDITIONAL INFORMATION DATED
MAY 1, 2019
This Statement of Additional Information ("SAI") is not a prospectus. It should
be read in conjunction with the related Incentive Life Optimizer(R), Incentive
Life Optimizer(R) II or IncentiveLife Optimizer(R) III prospectus, as
applicable, dated May 1, 2019. The prospectus provides detailed information
concerning the policy, information about the MSO (Incentive Life Optimizer II
only), the variable investment options, and the guaranteed interest option that
fund the policy. Each variable investment option is a sub-account of AXA
Equitable's Separate Account FP.
Separate Account FP's predecessor was established on April 19, 1985 by our then
wholly owned subsidiary, Equitable Variable Life Insurance Company. We
established our Separate Account FP under New York Law on September 21, 1995.
When Equitable Variable Life Insurance Company merged into AXA Equitable, as of
January 1, 1997, our Separate Account FP succeeded to all the assets,
liabilities and operations of its predecessor. The guaranteed interest option
is part of AXA Equitable's general account. Definitions of special terms used
in the SAI are found in the prospectuses.
A copy of the prospectus is available free of charge by writing the
Administrative Office (P.O. Box 1047, Charlotte, North Carolina 28201-1047), by
calling 1-800-777-6510 (for U.S. residents) or 1-704-341-7000 (outside of the
U.S.) or by contacting your financial professional.
TABLE OF CONTENTS
Who is AXA Equitable? 2
Ways we pay policy proceeds 2
Distribution of the policies 2
Underwriting a policy 2
|
Insurance regulation that applies to AXA Equitable 2
Custodian 2
Independent registered public accounting firm 2
Financial statements 2
|
Copyright 2019. AXA Equitable Life Insurance Company, New York, New York 10104.
All rights reserved. Incentive Life Optimizer(R) is a registered service mark
of AXA Equitable Life Insurance Company.
#643317
WHO IS AXA EQUITABLE?
We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Equitable Holdings, Inc. No company other than AXA Equitable has any legal
responsibility to pay amounts that AXA Equitable owes under the policies. AXA
Equitable is solely responsible for paying all amounts owed to you under your
policy.
WAYS WE PAY POLICY PROCEEDS
The payee for death benefit or other policy proceeds (e.g., upon surrenders)
may name a successor to receive any amounts that we still owe following the
payee's death. Otherwise, we will pay any such amounts to the payee's estate.
We must approve any payment arrangements that involve a payee who is not a
natural person (for example, a corporation) or a payee who is a fiduciary.
Also, the details of all payment arrangements will be subject to our rules at
the time the arrangements are selected and take effect.
DISTRIBUTION OF THE POLICIES
AXA Advisors distributes these policies pursuant to a selling agreement, dated
as of May 1, 1994, as amended, between AXA Advisors and AXA Equitable. For each
of the years 2018, 2017 and 2016, AXA Advisors was paid an administrative
services fee of $0, $0 and $0, respectively. AXA Equitable paid AXA Advisors as
the distributors of certain policies, including these policies, and as the
principal underwriter of several AXA Equitable separate accounts, including
Separate Account FP, $525,064,725 in 2018, $521,468,953 in 2017 and
$542,160,541 in 2016. Of these amounts, for each of these three years, AXA
Advisors retained $242,921,348, $267,653,575 and $281,641,950, respectively.
Under a distribution agreement between AXA Distributors and AXA Equitable and
certain of AXA Equitable's separate accounts, including Separate Account FP,
AXA Equitable paid AXA Distributors, (or EDI, as applicable) as the distributor
of certain policies, including these policies, and as the principal underwriter
of several AXA Equitable separate accounts, including Separate Account FP,
$466,293,494 in 2018, $480,771,028 in 2017 and $507,645,857 in 2016. Of these
amounts, for each of these three years, AXA Distributors (or EDI, as
applicable) retained $0, $0 and $7,262,699, respectively.
UNDERWRITING A POLICY
The underwriting of a policy determines: (1) whether the policy application
will be approved or disapproved; and (2) into what premium class the insured
should be placed. Risk factors that are considered for these determinations
are: (i) the insured's age; (ii) whether the insured uses tobacco or not; and
(iii) the admitted medical history of the insured. Many other factors make up
the overall evaluation of an individual's assessment for insurance, but all of
these items are determined through the questions asked during the application
process.
We base guaranteed cost of insurance rates under the policy on the 2001
Commissioner's Standard Ordinary Mortality Tables.
INSURANCE REGULATION THAT APPLIES TO AXA EQUITABLE
We are regulated and supervised by the New York State Department of Financial
Services. In addition, we are subject to the insurance laws and regulations in
every state where we sell policies. We submit annual reports on our operations
and finances to insurance officials in all of these states. The officials are
responsible for reviewing our reports to see that we are financially sound.
Such regulation, however, does not guarantee or provide absolute assurance of
our soundness.
CUSTODIAN
AXA Equitable is the custodian for shares of the Trusts owned by Separate
Account FP. AXA Equitable's principal offices are located at 1290 Avenue of the
Americas, New York, NY 10104.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements of the Separate Account at December 31, 2018 and for
each of the two years in the period ended December 31, 2018, and the
consolidated financial statements and financial statement schedules of AXA
Equitable at December 31, 2018 and 2017 and for each of the three years in the
period ended December 31, 2018 included in this SAI have been so included in
reliance on the reports of PricewaterhouseCoopers LLP, an independent
registered public accounting firm, given on the authority of said firm as
experts in auditing and accounting.
PricewaterhouseCoopers LLP provides independent audit services and certain
other non-audit services to AXA Equitable as permitted by the applicable SEC
independence rules, and as disclosed in AXA Equitable's Form 10-K.
PricewaterhouseCoopers LLP's address is 300 Madison Avenue, New York, New York
10017.
FINANCIAL STATEMENTS
The consolidated financial statements of AXA Equitable included herein should
be considered only as bearing upon the ability of AXA Equitable to meet its
obligations under the policies.
2
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
INDEX TO FINANCIAL STATEMENTS
Report of Independent Registered Public Accounting Firm............... FSA-2
Financial Statements:
Statements of Assets and Liabilities, December 31, 2018............ FSA-4
Statements of Operations for the Year or Period Ended December 31,
2018............................................................. FSA-40
Statements of Changes in Net Assets for the Years or Periods Ended
December 31, 2018 and 2017....................................... FSA-59
Notes to Financial Statements...................................... FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
Report of Independent Registered Public Accounting Firm............... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 2018 and 2017....... F-2
Consolidated Statements of Income (Loss), for the Years Ended
December 31, 2018, 2017 and 2016................................. F-4
Consolidated Statements of Comprehensive Income (Loss), for the
Years Ended December 31, 2018, 2017 and 2016..................... F-5
Consolidated Statements of Equity, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-6
Consolidated Statements of Cash Flows, for the Years Ended
December 31, 2018, 2017 and 2016................................. F-7
Notes to Consolidated Financial Statements......................... F-10
Audited Consolidated Financial Statement Schedules................. F-100
|
FSA-1 #673845
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of AXA Equitable Life Insurance Company
and the Contractowners of Separate Account FP of AXA Equitable Life Insurance
Company
OPINIONS ON THE FINANCIAL STATEMENTS
We have audited the accompanying statements of assets and liabilities of each
of the subaccounts of Separate Account FP of AXA Equitable Life Insurance
Company indicated in the table below as of December 31, 2018, and the related
statements of operations and of changes in net assets for each of the periods
indicated in the table below, including the related notes (collectively
referred to as the "financial statements"). In our opinion, the financial
statements present fairly, in all material respects, the financial position of
each of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company as of December 31, 2018, and the results of each of their operations
and the changes in each of their net assets for the periods indicated in the
table below, in conformity with accounting principles generally accepted in the
United States of America.
1290 VT CONVERTIBLE SECURITIES/(1)/ EQ/BLACKROCK BASIC VALUE EQUITY/(1)/
1290 VT DOUBLELINE DYNAMIC EQ/CAPITAL GUARDIAN RESEARCH/(1)/
ALLOCATION/(1)/
1290 VT DOUBLELINE OPPORTUNISTIC EQ/COMMON STOCK INDEX/(1)/
BOND/(3)/
1290 VT EQUITY INCOME/(1)/ EQ/CORE BOND INDEX/(1)/
1290 VT GAMCO MERGERS & EQ/EQUITY 500 INDEX/(1)/
ACQUISITIONS/(1)/
1290 VT GAMCO SMALL COMPANY VALUE/(1)/ EQ/FIDELITY INSTITUTIONAL AM/SM/
LARGE CAP/(2)/
1290 VT SMARTBETA EQUITY/(1)/ EQ/FRANKLIN RISING DIVIDENDS/(2)/
1290 VT SOCIALLY RESPONSIBLE/(1)/ EQ/FRANKLIN STRATEGIC INCOME/(2)/
ALL ASSET GROWTH-ALT 20/(1)/ EQ/GLOBAL BOND PLUS/(1)/
AMERICAN FUNDS INSURANCE SERIES(R) EQ/GOLDMAN SACHS MID CAP VALUE/(2)/
GLOBAL SMALL
CAPITALIZATION FUND/SM(1)/ EQ/INTERMEDIATE GOVERNMENT BOND/(1)/
AMERICAN FUNDS INSURANCE SERIES(R)
NEW WORLD FUND(R)/(1)/ EQ/INTERNATIONAL EQUITY INDEX/(1)/
AXA 400 MANAGED VOLATILITY/(1)/ EQ/INVESCO COMSTOCK/(1)/
AXA 500 MANAGED VOLATILITY/(1)/ EQ/INVESCO GLOBAL REAL ESTATE/(2)/
AXA 2000 MANAGED VOLATILITY/(1)/ EQ/INVESCO INTERNATIONAL GROWTH/(2)/
AXA AGGRESSIVE ALLOCATION/(1)/ EQ/IVY ENERGY/(2)/
AXA BALANCED STRATEGY/(1)/ EQ/IVY MID CAP GROWTH/(2)/
AXA CONSERVATIVE ALLOCATION/(1)/ EQ/IVY SCIENCE AND TECHNOLOGY/(2)/
AXA CONSERVATIVE GROWTH STRATEGY/(1)/ EQ/JPMORGAN VALUE OPPORTUNITIES/(1)/
AXA CONSERVATIVE STRATEGY/(1)/ EQ/LARGE CAP GROWTH INDEX/(1)/
AXA CONSERVATIVE-PLUS ALLOCATION/(1)/ EQ/LARGE CAP VALUE INDEX/(1)/
AXA GLOBAL EQUITY MANAGED
VOLATILITY/(1)/ EQ/LAZARD EMERGING MARKETS EQUITY/(2)/
AXA GROWTH STRATEGY/(1)/ EQ/MFS INTERNATIONAL GROWTH/(1)/
AXA INTERNATIONAL CORE MANAGED
VOLATILITY/(1)/ EQ/MFS INTERNATIONAL VALUE/(2)/
AXA INTERNATIONAL MANAGED
VOLATILITY/(1)/ EQ/MFS UTILITIES SERIES/(2)/
AXA INTERNATIONAL VALUE MANAGED
VOLATILITY/(1)/ EQ/MID CAP INDEX/(1)/
AXA LARGE CAP CORE MANAGED
VOLATILITY/(1)/ EQ/MONEY MARKET/(1)/
AXA LARGE CAP GROWTH MANAGED
VOLATILITY/(1)/ EQ/PIMCO REAL RETURN/(2)/
AXA LARGE CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO TOTAL RETURN/(2)/
AXA MID CAP VALUE MANAGED
VOLATILITY/(1)/ EQ/PIMCO ULTRA SHORT BOND/(1)/
AXA MODERATE ALLOCATION/(1)/ EQ/QUALITY BOND PLUS/(1)/
AXA MODERATE GROWTH STRATEGY/(1)/ EQ/SMALL COMPANY INDEX/(1)/
AXA MODERATE-PLUS ALLOCATION/(1)/ EQ/T. ROWE PRICE GROWTH STOCK/(1)/
AXA/AB SMALL CAP GROWTH/(1)/ EQ/T. ROWE PRICE HEALTH SCIENCES/(2)/
AXA/CLEARBRIDGE LARGE CAP GROWTH/(1)/ EQ/UBS GROWTH & INCOME/(1)/
AXA/JANUS ENTERPRISE/(1)/ FIDELITY(R) VIP ASSET MANAGER: GROWTH
PORTFOLIO/(1)/
AXA/LOOMIS SAYLES GROWTH/(1)/ FIDELITY(R) VIP EQUITY-INCOME
PORTFOLIO/(1)/
BLACKROCK GLOBAL ALLOCATION V.I. FIDELITY(R) VIP GOVERNMENT MONEY
FUND/(1)/ MARKET PORTFOLIO/(1)/
CHARTER/SM/ MULTI-SECTOR BOND/(1)/ FIDELITY(R) VIP GROWTH & INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP GROWTH/(1)/ FIDELITY(R) VIP HIGH INCOME
PORTFOLIO/(1)/
CHARTER/SM/ SMALL CAP VALUE/(1)/ FIDELITY(R) VIP INVESTMENT GRADE BOND
PORTFOLIO/(1)/
CLEARBRIDGE VARIABLE MID CAP FIDELITY(R) VIP MID CAP PORTFOLIO/(1)/
PORTFOLIO/(1)/
|
EQ/AMERICAN CENTURY MID CAP VALUE/(2)/ FIDELITY(R) VIP VALUE PORTFOLIO/(1)/
FSA-2
FIDELITY(R) VIP VALUE STRATEGIES MULTIMANAGER TECHNOLOGY/(1)/
PORTFOLIO/(1)/
FRANKLIN MUTUAL SHARES VIP FUND/(1)/ NATURAL RESOURCES PORTFOLIO/(1)/
FRANKLIN SMALL CAP VALUE VIP FUND/(1)/ PIMCO COMMODITYREALRETURN(R) STRATEGY
PORTFOLIO/(1)/
INVESCO V.I. DIVERSIFIED DIVIDEND T. ROWE PRICE EQUITY INCOME
FUND/(1)/ PORTFOLIO/(1)/
INVESCO V.I. MID CAP CORE EQUITY TARGET 2015 ALLOCATION/(1)/
FUND/(1)/
INVESCO V.I. SMALL CAP EQUITY TARGET 2025 ALLOCATION/(1)/
FUND/(1)/
IVY VIP GLOBAL EQUITY INCOME/(1)/ TARGET 2035 ALLOCATION/(1)/
IVY VIP HIGH INCOME/(1)/ TARGET 2045 ALLOCATION/(1)/
IVY VIP SMALL CAP GROWTH/(1)/ TARGET 2055 ALLOCATION/(1)/
TEMPLETON DEVELOPING MARKETS VIP
MFS(R) INVESTORS TRUST SERIES/(1)/ FUND/(1)/
MFS(R) MASSACHUSETTS INVESTORS GROWTH TEMPLETON GLOBAL BOND VIP FUND/(1)/
STOCK PORTFOLIO/(1)/
MULTIMANAGER AGGRESSIVE EQUITY/(1)/ TEMPLETON GROWTH VIP FUND/(1)/
VANECK VIP GLOBAL HARD ASSETS
MULTIMANAGER CORE BOND/(1)/ FUND/(1)/
VANGUARD VARIABLE INSURANCE FUND --
MULTIMANAGER MID CAP GROWTH/(1)/ EQUITY INDEX PORTFOLIO/(1)/
MULTIMANAGER MID CAP VALUE/(1)/
|
(1)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for each of the two years
in the period ended December 31,
2018.
(2)Statements of operations and of
changes in net assets for the
period October 22, 2018
(commencement of operations)
through December 31, 2018.
(3)Statements of operations for the
year ended December 31, 2018 and
statements of changes in net
assets for the year ended
December 31, 2018 and the period
May 19, 2017 (commencement of
operations) through December 31,
2017.
BASIS FOR OPINIONS
These financial statements are the responsibility of AXA Equitable Life
Insurance Company management. Our responsibility is to express an opinion on
the financial statements of each of the subaccounts in Separate Account FP of
AXA Equitable Life Insurance Company based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to each
of the subaccounts in Separate Account FP of AXA Equitable Life Insurance
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of investments owned as of December 31, 2018 by
correspondence with the transfer agents of the investee mutual funds or the
investee mutual funds directly. We believe that our audits provide a reasonable
basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
April 15, 2019
|
We have served as the auditor of one or more of the subaccounts in Separate
Account FP of AXA Equitable Life Insurance Company since 1993.
FSA-3
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2018
1290 VT 1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,204,221 $10,754,358 $606,762 $19,286,327 $15,090,075
Receivable for shares of the Portfolios sold................ 19 28 4 -- 61,315
Receivable for policy-related transactions.................. -- -- -- 10,247 --
---------- ----------- -------- ----------- -----------
Total assets............................................. 1,204,240 10,754,386 606,766 19,296,574 15,151,390
---------- ----------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 10,261 --
Payable for policy-related transactions..................... 16 19 2 -- 61,317
---------- ----------- -------- ----------- -----------
Total liabilities........................................ 16 19 2 10,261 61,317
---------- ----------- -------- ----------- -----------
NET ASSETS.................................................. $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,204,224 $10,754,367 $606,764 $19,285,513 $15,089,316
Retained by AXA Equitable in Separate Account FP............ -- -- -- 800 757
---------- ----------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $1,204,224 $10,754,367 $606,764 $19,286,313 $15,090,073
========== =========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $1,355,418 $11,256,372 $623,632 $28,317,391 $16,528,990
|
1290 VT
GAMCO SMALL
COMPANY VALUE*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $162,891,475
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 45,919
------------
Total assets............................................. 162,937,394
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 45,324
Payable for policy-related transactions..................... --
------------
Total liabilities........................................ 45,324
------------
NET ASSETS.................................................. $162,892,070
============
NET ASSETS:
Accumulation unit values.................................... $162,891,215
Retained by AXA Equitable in Separate Account FP............ 855
------------
TOTAL NET ASSETS............................................ $162,892,070
============
Investments in shares of the Portfolios, at cost............ $169,324,722
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-4
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R) GLOBAL
1290 VT 1290 VT SMALL
SMARTBETA SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
---------- ------------ -------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,272,599 $2,801,064 $29,859,033 $8,267,438
Receivable for shares of the Portfolios sold................ 11 -- 2,560 --
Receivable for policy-related transactions.................. -- 11,996 4,376 277
---------- ---------- ----------- ----------
Total assets............................................. 1,272,610 2,813,060 29,865,969 8,267,715
---------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 11,996 -- 278
Payable for policy-related transactions..................... 8 -- -- --
---------- ---------- ----------- ----------
Total liabilities........................................ 8 11,996 -- 278
---------- ---------- ----------- ----------
NET ASSETS.................................................. $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,272,602 $2,636,981 $29,858,581 $8,267,201
Retained by AXA Equitable in Separate Account FP............ -- 164,083 7,388 236
---------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $1,272,602 $2,801,064 $29,865,969 $8,267,437
========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $1,399,627 $2,961,203 $31,570,121 $8,926,526
|
AMERICAN
FUNDS
INSURANCE AXA 400
SERIES(R) NEW MANAGED
WORLD FUND(R) VOLATILITY*
------------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $19,112,159 $4,405,240
Receivable for shares of the Portfolios sold................ -- --
Receivable for policy-related transactions.................. 44,611 1,038
----------- ----------
Total assets............................................. 19,156,770 4,406,278
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 43,662 997
Payable for policy-related transactions..................... -- --
----------- ----------
Total liabilities........................................ 43,662 997
----------- ----------
NET ASSETS.................................................. $19,113,108 $4,405,281
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $19,113,108 $4,405,281
Retained by AXA Equitable in Separate Account FP............ -- --
----------- ----------
TOTAL NET ASSETS............................................ $19,113,108 $4,405,281
=========== ==========
Investments in shares of the Portfolios, at cost............ $20,591,683 $5,203,143
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-5
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA 500 AXA 2000 AXA AXA AXA
MANAGED MANAGED AGGRESSIVE BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- ------------ ----------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $10,224,920 $4,136,561 $135,970,073 $38,375,203 $27,196,469
Receivable for shares of the Portfolios sold................ -- -- -- -- 62,943
Receivable for policy-related transactions.................. 2,188 1,346 7,096 2,629 --
----------- ---------- ------------ ----------- -----------
Total assets............................................. 10,227,108 4,137,907 135,977,169 38,377,832 27,259,412
----------- ---------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 2,131 1,321 7,096 2,629 --
Payable for policy-related transactions..................... -- -- -- -- 62,943
----------- ---------- ------------ ----------- -----------
Total liabilities........................................ 2,131 1,321 7,096 2,629 62,943
----------- ---------- ------------ ----------- -----------
NET ASSETS.................................................. $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $10,224,977 $4,136,586 $135,912,188 $38,340,399 $27,193,590
Retained by AXA Equitable in Separate Account FP............ -- -- 57.885 34,804 2,879
----------- ---------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $10,224,977 $4,136,586 $135,970,073 $38,375,203 $27,196,469
=========== ========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $10,170,394 $4,735,803 $145,357,750 $38,565,642 $29,051,705
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $7,082,064
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 23
----------
Total assets............................................. 7,082,087
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 23
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 23
----------
NET ASSETS.................................................. $7,082,064
==========
NET ASSETS:
Accumulation unit values.................................... $7,082,059
Retained by AXA Equitable in Separate Account FP............ 5
----------
TOTAL NET ASSETS............................................ $7,082,064
==========
Investments in shares of the Portfolios, at cost............ $7,113,610
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-6
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA AXA
AXA CONSERVATIVE- AXA GLOBAL AXA INTERNATIONAL
CONSERVATIVE PLUS EQUITY MANAGED GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- -------------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,968,614 $29,777,949 $120,128,671 $58,504,234 $51,292,032
Receivable for shares of the Portfolios sold................ 412 -- -- -- 36,524
Receivable for policy-related transactions.................. -- 4,051 6,799 50,086 --
---------- ----------- ------------ ----------- -----------
Total assets............................................. 2,969,026 29,782,000 120,135,470 58,554,320 51,328,556
---------- ----------- ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 39,707 6,810 50,086 --
Payable for policy-related transactions..................... 412 -- -- -- 36,649
---------- ----------- ------------ ----------- -----------
Total liabilities........................................ 412 39,707 6,810 50,086 36,649
---------- ----------- ------------ ----------- -----------
NET ASSETS.................................................. $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,968,614 $29,662,597 $120,081,031 $58,504,221 $51,221,536
Retained by AXA Equitable in Separate Account FP............ -- 79,696 47,629 13 70,371
---------- ----------- ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,968,614 $29,742,293 $120,128,660 $58,504,234 $51,291,907
========== =========== ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $3,058,866 $32,222,508 $104,477,256 $56,283,009 $51,692,566
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,515,456
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 164
----------
Total assets............................................. 3,515,620
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 159
Payable for policy-related transactions..................... --
----------
Total liabilities........................................ 159
----------
NET ASSETS.................................................. $3,515,461
==========
NET ASSETS:
Accumulation unit values.................................... $3,515,461
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $3,515,461
==========
Investments in shares of the Portfolios, at cost............ $3,783,719
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-7
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA
INTERNATIONAL AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP
VALUE MANAGED CORE MANAGED GROWTH MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- -------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $66,956,565 $27,761,351 $243,752,948 $343,916,122
Receivable for shares of the Portfolios sold................ 194,166 8,604 106,987 --
Receivable for policy-related transactions.................. -- -- -- --
----------- ----------- ------------ ------------
Total assets............................................. 67,150,731 27,769,955 243,859,935 343,916,122
----------- ----------- ------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,421
Payable for policy-related transactions..................... 194,254 8,789 107,354 6,125
----------- ----------- ------------ ------------
Total liabilities........................................ 194,254 8,789 107,354 7,546
----------- ----------- ------------ ------------
NET ASSETS.................................................. $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
NET ASSETS:
Accumulation unit values.................................... $66,934,190 $27,717,126 $243,596,271 $343,556,995
Accumulation nonunitized.................................... -- -- -- 218,684
Retained by AXA Equitable in Separate Account FP............ 22,287 44,040 156,310 132,897
----------- ----------- ------------ ------------
TOTAL NET ASSETS............................................ $66,956,477 $27,761,166 $243,752,581 $343,908,576
=========== =========== ============ ============
Investments in shares of the Portfolios, at cost............ $69,299,707 $25,191,142 $178,554,968 $275,592,613
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $171,153,729 $803,396,725
Receivable for shares of the Portfolios sold................ -- 479,394
Receivable for policy-related transactions.................. 4,982 --
------------ ------------
Total assets............................................. 171,158,711 803,876,119
------------ ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 5,790 --
Payable for policy-related transactions..................... -- 1,449,160
------------ ------------
Total liabilities........................................ 5,790 1,449,160
------------ ------------
NET ASSETS.................................................. $171,152,921 $802,426,959
============ ============
NET ASSETS:
Accumulation unit values.................................... $171,111,512 $799,703,084
Accumulation nonunitized.................................... -- 2,568,229
Retained by AXA Equitable in Separate Account FP............ 41,409 155,646
------------ ------------
TOTAL NET ASSETS............................................ $171,152,921 $802,426,959
============ ============
Investments in shares of the Portfolios, at cost............ $137,142,391 $856,446,772
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-8
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $106,743,471 $392,177,617 $186,463,102 $76,684,466 $41,614,072
Receivable for shares of the Portfolios sold................ -- -- 140,609 285,796 64,769
Receivable for policy-related transactions.................. 4,501 301,098 -- -- --
------------ ------------ ------------ ----------- -----------
Total assets............................................. 106,747,972 392,478,715 186,603,711 76,970,262 41,678,841
------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 4,489 300,966 -- -- --
Payable for policy-related transactions..................... -- -- 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
Total liabilities........................................ 4,489 300,966 140,670 285,811 64,786
------------ ------------ ------------ ----------- -----------
NET ASSETS.................................................. $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $106,743,483 $392,148,528 $186,423,005 $76,622,908 $41,613,198
Retained by AXA Equitable in Separate Account FP............ -- 29,221 40,036 61,543 857
------------ ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $106,743,483 $392,177,749 $186,463,041 $76,684,451 $41,614,055
============ ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $103,054,942 $421,436,546 $209,272,493 $82,891,129 $45,005,881
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $39,626,380
Receivable for shares of the Portfolios sold................ 174,064
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 39,800,444
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 174,085
-----------
Total liabilities........................................ 174,085
-----------
NET ASSETS.................................................. $39,626,359
===========
NET ASSETS:
Accumulation unit values.................................... $39,624,999
Retained by AXA Equitable in Separate Account FP............ 1,360
-----------
TOTAL NET ASSETS............................................ $39,626,359
===========
Investments in shares of the Portfolios, at cost............ $38,585,633
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-9
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM/ CHARTER/SM/ CHARTER/SM/ CLEARBRIDGE
ALLOCATION V.I. MULTI-SECTOR SMALL CAP SMALL CAP VARIABLE MID
FUND BOND* GROWTH* VALUE* CAP PORTFOLIO
--------------- ------------ ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,436,712 $68,050,855 $12,513,905 $24,463,483 $617,285
Receivable for shares of the Portfolios sold................ 341,752 34,931 3,276 -- --
Receivable for policy-related transactions.................. -- -- -- 6,943 7,424
---------- ----------- ----------- ----------- --------
Total assets............................................. 5,778,464 68,085,786 12,517,181 24,470,426 624,709
---------- ----------- ----------- ----------- --------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 7,588 6,892
Payable for policy-related transactions..................... 341,752 76,375 3,275 -- --
---------- ----------- ----------- ----------- --------
Total liabilities........................................ 341,752 76,375 3,275 7,588 6,892
---------- ----------- ----------- ----------- --------
NET ASSETS.................................................. $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
NET ASSETS:
Accumulation unit values.................................... $5,433,945 $67,500,179 $12,512,038 $24,397,651 $617,817
Accumulation nonunitized.................................... -- 456,132 -- -- --
Retained by AXA Equitable in Separate Account FP............ 2,767 53,100 1,868 65,187 --
---------- ----------- ----------- ----------- --------
TOTAL NET ASSETS............................................ $5,436,712 $68,009,411 $12,513,906 $24,462,838 $617,817
========== =========== =========== =========== ========
Investments in shares of the Portfolios, at cost............ $5,914,474 $77,505,553 $12,661,900 $20,266,042 $715,294
|
EQ/AMERICAN
CENTURY MID
CAP VALUE*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $48,114,990
Receivable for shares of the Portfolios sold................ 186,640
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 48,301,630
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 189,424
-----------
Total liabilities........................................ 189,424
-----------
NET ASSETS.................................................. $48,112,206
===========
NET ASSETS:
Accumulation unit values.................................... $48,110,561
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 1,645
-----------
TOTAL NET ASSETS............................................ $48,112,206
===========
Investments in shares of the Portfolios, at cost............ $53,974,547
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-10
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND EQ/EQUITY 500
EQUITY* RESEARCH* STOCK INDEX* INDEX* INDEX*
------------ ------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $183,322,625 $112,258,595 $1,485,794,702 $49,589,275 $802,858,916
Receivable for shares of the Portfolios sold................ 183,839 97,290 11,799 60,435 2,790,968
------------ ------------ -------------- ----------- ------------
Total assets............................................. 183,506,464 112,355,885 1,485,806,501 49,649,710 805,649,884
------------ ------------ -------------- ----------- ------------
LIABILITIES:
Payable for policy-related transactions..................... 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
Total liabilities........................................ 184,547 97,625 184,226 60,328 3,031,071
------------ ------------ -------------- ----------- ------------
NET ASSETS.................................................. $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
NET ASSETS:
Accumulation unit values.................................... $183,243,930 $112,084,507 $1,481,506,448 $49,571,977 $802,250,312
Accumulation nonunitized.................................... -- -- 3,631,059 -- 334,777
Retained by AXA Equitable in Separate Account FP............ 77,987 173,753 484,768 17,405 33,724
------------ ------------ -------------- ----------- ------------
TOTAL NET ASSETS............................................ $183,321,917 $112,258,260 $1,485,622,275 $49,589,382 $802,618,813
============ ============ ============== =========== ============
Investments in shares of the Portfolios, at cost............ $156,473,871 $ 89,611,072 $1,047,182,530 $50,957,446 $617,308,124
|
EQ/FIDELITY
INSTITUTIONAL
AM/SM/ LARGE CAP*
---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 93,729,045
Receivable for shares of the Portfolios sold................ 8,167
------------
Total assets............................................. 93,737,212
------------
LIABILITIES:
Payable for policy-related transactions..................... 8,877
------------
Total liabilities........................................ 8,877
------------
NET ASSETS.................................................. $ 93,728,335
============
NET ASSETS:
Accumulation unit values.................................... $ 93,722,862
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 5,473
------------
TOTAL NET ASSETS............................................ $ 93,728,335
============
Investments in shares of the Portfolios, at cost............ $105,758,670
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-11
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
EQ/FRANKLIN STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
RISING DIVIDENDS* INCOME* BOND PLUS* VALUE* BOND*
----------------- ----------- ----------- ------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $52,115,217 $33,501,099 $16,637,917 $8,496,816 $48,231,562
Receivable for shares of the Portfolios sold................ 58,093 2,051 10,847 -- 51,127
Receivable for policy-related transactions.................. -- -- -- 1,138 --
----------- ----------- ----------- ---------- -----------
Total assets............................................. 52,173,310 33,503,150 16,648,764 8,497,954 48,282,689
----------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 1,894 --
Payable for policy-related transactions..................... 64,065 4,778 10,846 -- 54,981
----------- ----------- ----------- ---------- -----------
Total liabilities........................................ 64,065 4,778 10,846 1,894 54,981
----------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $52,109,245 $33,498,372 $16,636,965 $8,495,754 $48,114,681
Accumulation nonunitized.................................... -- -- -- -- 95,850
Retained by AXA Equitable in Separate Account FP............ -- -- 953 306 17,177
----------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $52,109,245 $33,498,372 $16,637,918 $8,496,060 $48,227,708
=========== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $56,311,179 $34,155,258 $17,492,519 $9,346,271 $48,626,417
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $272,536,309
Receivable for shares of the Portfolios sold................ 3,135
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 272,539,444
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 111,848
------------
Total liabilities........................................ 111,848
------------
NET ASSETS.................................................. $272,427,596
============
NET ASSETS:
Accumulation unit values.................................... $272,107,156
Accumulation nonunitized.................................... 252,495
Retained by AXA Equitable in Separate Account FP............ 67,945
------------
TOTAL NET ASSETS............................................ $272,427,596
============
Investments in shares of the Portfolios, at cost............ $303,604,762
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-12
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL EQ/ EQ/IVY MID CAP
COMSTOCK* ESTATE* GROWTH* IVY ENERGY* GROWTH*
----------- ----------- ------------- ----------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $25,600,527 $36,373,951 $32,106,216 $10,240,782 $33,209,780
Receivable for shares of the Portfolios sold................ 6,756 -- 41,550 -- 125,792
Receivable for policy-related transactions.................. -- 2,914 -- 10,220 --
----------- ----------- ----------- ----------- -----------
Total assets............................................. 25,607,283 36,376,865 32,147,766 10,251,002 33,335,572
----------- ----------- ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 10,767 -- 11,900 --
Payable for policy-related transactions..................... 6,756 -- 32,475 -- 130,843
----------- ----------- ----------- ----------- -----------
Total liabilities........................................ 6,756 10,767 32,475 11,900 130,843
----------- ----------- ----------- ----------- -----------
NET ASSETS.................................................. $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $25,593,350 $36,366,098 $32,099,746 $10,239,102 $33,195,999
Retained by AXA Equitable in Separate Account FP............ 7,177 -- 15,545 -- 8,730
----------- ----------- ----------- ----------- -----------
TOTAL NET ASSETS............................................ $25,600,527 $36,366,098 $32,115,291 $10,239,102 $33,204,729
=========== =========== =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $25,595,432 $37,062,268 $33,851,043 $14,738,486 $36,402,660
|
EQ/IVY SCIENCE
AND
TECHNOLOGY*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $32,657,031
Receivable for shares of the Portfolios sold................ 179,388
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 32,836,419
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 183,662
-----------
Total liabilities........................................ 183,662
-----------
NET ASSETS.................................................. $32,652,757
===========
NET ASSETS:
Accumulation unit values.................................... $32,652,757
Retained by AXA Equitable in Separate Account FP............ --
-----------
TOTAL NET ASSETS............................................ $32,652,757
===========
Investments in shares of the Portfolios, at cost............ $36,542,551
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-13
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EQ/LARGE EMERGING EQ/MFS
VALUE EQ/LARGE CAP CAP VALUE MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* INDEX* EQUITY* GROWTH*
-------------- ------------- ----------- ----------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $43,550,400 $148,283,162 $24,698,977 $52,605,449 $46,696,823
Receivable for shares of the Portfolios sold................ 1,933 182,171 2,067 281,649 --
Receivable for policy-related transactions.................. -- -- -- -- 38,630
----------- ------------ ----------- ----------- -----------
Total assets............................................. 43,552,333 148,465,333 24,701,044 52,887,098 46,735,453
----------- ------------ ----------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- -- 38,634
Payable for policy-related transactions..................... 2,330 182,473 2,076 272,772 --
----------- ------------ ----------- ----------- -----------
Total liabilities........................................ 2,330 182,473 2,076 272,772 38,634
----------- ------------ ----------- ----------- -----------
NET ASSETS.................................................. $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $43,438,530 $148,201,129 $24,683,127 $52,589,118 $46,696,549
Retained by AXA Equitable in Separate Account FP............ 111,473 81,731 15,841 25,208 270
----------- ------------ ----------- ----------- -----------
TOTAL NET ASSETS............................................ $43,550,003 $148,282,860 $24,698,968 $52,614,326 $46,696,819
=========== ============ =========== =========== ===========
Investments in shares of the Portfolios, at cost............ $47,970,016 $128,278,230 $26,159,500 $53,319,248 $49,439,048
|
EQ/MFS
INTERNATIONAL
VALUE*
-------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $102,842,684
Receivable for shares of the Portfolios sold................ 254,123
Receivable for policy-related transactions.................. --
------------
Total assets............................................. 103,096,807
------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 253,113
------------
Total liabilities........................................ 253,113
------------
NET ASSETS.................................................. $102,843,694
============
NET ASSETS:
Accumulation unit values.................................... $102,836,986
Retained by AXA Equitable in Separate Account FP............ 6,708
------------
TOTAL NET ASSETS............................................ $102,843,694
============
Investments in shares of the Portfolios, at cost............ $107,419,572
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-14
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/MFS
UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL EQ/PIMCO TOTAL
SERIES* INDEX* MARKET* RETURN* RETURN*
---------- ------------ ------------ ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,291,837 $134,225,945 $148,888,985 $24,188,753 $68,230,532
Receivable for shares of the Portfolios sold................ 92,913 -- -- -- 314,118
Receivable for policy-related transactions.................. -- 1,843 -- 209,393 --
---------- ------------ ------------ ----------- -----------
Total assets............................................. 2,384,750 134,227,788 148,888,985 24,398,146 68,544,650
---------- ------------ ------------ ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 1,889 3,247,144 213,550 --
Payable for policy-related transactions..................... 92,846 -- 1,281,097 -- 316,513
---------- ------------ ------------ ----------- -----------
Total liabilities........................................ 92,846 1,889 4,528,241 213,550 316,513
---------- ------------ ------------ ----------- -----------
NET ASSETS.................................................. $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
NET ASSETS:
Accumulation unit values.................................... $2,291,768 $134,200,303 $143,929,769 $24,169,439 $68,222,803
Accumulation nonunitized.................................... -- -- 421,416 -- --
Retained by AXA Equitable in Separate Account FP............ 136 25,596 9,559 15,157 5,334
---------- ------------ ------------ ----------- -----------
TOTAL NET ASSETS............................................ $2,291,904 $134,225,899 $144,360,744 $24,184,596 $68,228,137
========== ============ ============ =========== ===========
Investments in shares of the Portfolios, at cost............ $2,380,927 $134,601,176 $148,886,123 $24,267,636 $67,820,014
|
EQ/PIMCO ULTRA
SHORT BOND*
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $33,385,501
Receivable for shares of the Portfolios sold................ 82,638
Receivable for policy-related transactions.................. --
-----------
Total assets............................................. 33,468,139
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 82,639
-----------
Total liabilities........................................ 82,639
-----------
NET ASSETS.................................................. $33,385,500
===========
NET ASSETS:
Accumulation unit values.................................... $33,383,383
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ 2,117
-----------
TOTAL NET ASSETS............................................ $33,385,500
===========
Investments in shares of the Portfolios, at cost............ $33,738,915
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-15
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES* & INCOME*
-------------- -------------- ------------ ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $ 41,752,769 $ 89,366,351 $114,532,018 $7,851,801 $11,348,324
Receivable for shares of the Portfolios sold...... 35,720 -- 13,861 196,412 --
Receivable for policy-related transactions........ -- 66,478 -- -- 8,078
-------------- ------------ ------------ ---------- -----------
Total assets................................... 41,788,489 89,432,829 114,545,879 8,048,213 11,356,402
-------------- ------------ ------------ ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... -- 66,492 -- -- 8,078
Payable for policy-related transactions........... 37,190 -- 12,308 195,087 --
-------------- ------------ ------------ ---------- -----------
Total liabilities.............................. 37,190 66,492 12,308 195,087 8,078
-------------- ------------ ------------ ---------- -----------
NET ASSETS........................................ $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
NET ASSETS:
Accumulation unit values.......................... $41,626,950.36 $ 89,337,709 $114,375,678 $7,850,572 $11,348,285
Accumulation nonunitized.......................... 53,419 -- -- -- --
Retained by AXA Equitable in Separate Account FP.. 70,930 28,628 157,893 2,554 39
-------------- ------------ ------------ ---------- -----------
TOTAL NET ASSETS.................................. $ 41,751,299 $ 89,366,337 $114,533,571 $7,853,126 $11,348,324
============== ============ ============ ========== ===========
Investments in shares of the Portfolios, at cost.. $ 43,967,750 $105,793,037 $108,501,498 $8,675,143 $13,609,331
|
FIDELITY(R) VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
ASSETS:
Investments in shares of the Portfolios, at fair
value............................................ $1,145,423
Receivable for shares of the Portfolios sold...... --
Receivable for policy-related transactions........ --
----------
Total assets................................... 1,145,423
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.... --
Payable for policy-related transactions........... --
----------
Total liabilities.............................. --
----------
NET ASSETS........................................ $1,145,423
==========
NET ASSETS:
Accumulation unit values.......................... $1,144,529
Accumulation nonunitized.......................... --
Retained by AXA Equitable in Separate Account FP.. 894
----------
TOTAL NET ASSETS.................................. $1,145,423
==========
Investments in shares of the Portfolios, at cost.. $1,264,257
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-16
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP FIDELITY(R) VIP FIDELITY(R) VIP
FIDELITY(R) VIP GOVERNMENT GROWTH & HIGH
EQUITY-INCOME MONEY MARKET INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- ---------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,610,775 $1,467,363 $8,797,260 $2,637,489
Receivable for shares of the Portfolios sold................ -- -- 6,193 --
Receivable for policy-related transactions.................. 207 -- -- 71,405
---------- ---------- ---------- ----------
Total assets............................................. 1,610,982 1,467,363 8,803,453 2,708,894
---------- ---------- ---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 207 -- -- 71,405
Payable for policy-related transactions..................... -- -- 6,193 --
---------- ---------- ---------- ----------
Total liabilities........................................ 207 -- 6,193 71,405
---------- ---------- ---------- ----------
NET ASSETS.................................................. $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
NET ASSETS:
Accumulation unit values.................................... $1,605,235 $1,467,282 $8,794,912 $2,637,342
Retained by AXA Equitable in Separate Account FP............ 5,540 81 2,348 147
---------- ---------- ---------- ----------
TOTAL NET ASSETS............................................ $1,610,775 $1,467,363 $8,797,260 $2,637,489
========== ========== ========== ==========
Investments in shares of the Portfolios, at cost............ $1,733,436 $1,467,363 $9,103,378 $2,869,071
|
FIDELITY(R) VIP
INVESTMENT
GRADE BOND FIDELITY(R) VIP MID
PORTFOLIO CAP PORTFOLIO
--------------- -------------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $36,813,473 $28,429,287
Receivable for shares of the Portfolios sold................ 63,842 --
Receivable for policy-related transactions.................. -- 33,227
----------- -----------
Total assets............................................. 36,877,315 28,462,514
----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 32,998
Payable for policy-related transactions..................... 63,842 --
----------- -----------
Total liabilities........................................ 63,842 32,998
----------- -----------
NET ASSETS.................................................. $36,813,473 $28,429,516
=========== ===========
NET ASSETS:
Accumulation unit values.................................... $36,812,880 $28,415,333
Retained by AXA Equitable in Separate Account FP............ 593 14,183
----------- -----------
TOTAL NET ASSETS............................................ $36,813,473 $28,429,516
=========== ===========
Investments in shares of the Portfolios, at cost............ $37,849,217 $32,666,614
|
The accompanying notes are an integral part of these financial statements.
FSA-17
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
FIDELITY(R) VIP
FIDELITY(R) VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,319,266 $287,654 $8,151,301 $11,105,183
Receivable for shares of the Portfolios sold................ -- -- 192,850 92,493
Receivable for policy-related transactions.................. 400 -- -- --
---------- -------- ---------- -----------
Total assets............................................. 1,319,666 287,654 8,344,151 11,197,676
---------- -------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 400 -- -- --
Payable for policy-related transactions..................... -- -- 192,850 92,493
---------- -------- ---------- -----------
Total liabilities........................................ 400 -- 192,850 92,493
---------- -------- ---------- -----------
NET ASSETS.................................................. $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $1,303,693 $287,433 $8,151,161 $11,102,217
Retained by AXA Equitable in Separate Account FP............ 15,573 221 140 2,966
---------- -------- ---------- -----------
TOTAL NET ASSETS............................................ $1,319,266 $287,654 $8,151,301 $11,105,183
========== ======== ========== ===========
Investments in shares of the Portfolios, at cost............ $1,524,778 $359,062 $9,329,692 $13,870,711
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,522,826 $3,493,111
Receivable for shares of the Portfolios sold................ 142,854 17,488
Receivable for policy-related transactions.................. -- --
----------- ----------
Total assets............................................. 13,665,680 3,510,599
----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- --
Payable for policy-related transactions..................... 142,854 17,444
----------- ----------
Total liabilities........................................ 142,854 17,444
----------- ----------
NET ASSETS.................................................. $13,522,826 $3,493,155
=========== ==========
NET ASSETS:
Accumulation unit values.................................... $13,522,813 $3,493,155
Retained by AXA Equitable in Separate Account FP............ 13 --
----------- ----------
TOTAL NET ASSETS............................................ $13,522,826 $3,493,155
=========== ==========
Investments in shares of the Portfolios, at cost............ $14,859,007 $4,332,188
|
The accompanying notes are an integral part of these financial statements.
FSA-18
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $5,092,113 $525,754 $35,496,796 $12,355,465
Receivable for shares of the Portfolios sold................ -- -- -- 20,561
Receivable for policy-related transactions.................. 105,400 -- 86,183 --
---------- -------- ----------- -----------
Total assets............................................. 5,197,513 525,754 35,582,979 12,376,026
---------- -------- ----------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 105,402 -- 85,132 --
Payable for policy-related transactions..................... -- -- -- 20,589
---------- -------- ----------- -----------
Total liabilities........................................ 105,402 -- 85,132 20,589
---------- -------- ----------- -----------
NET ASSETS.................................................. $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
NET ASSETS:
Accumulation unit values.................................... $5,091,992 $520,791 $35,497,847 $12,355,437
Retained by AXA Equitable in Separate Account FP............ 119 4,963 -- --
---------- -------- ----------- -----------
TOTAL NET ASSETS............................................ $5,092,111 $525,754 $35,497,847 $12,355,437
========== ======== =========== ===========
Investments in shares of the Portfolios, at cost............ $6,314,958 $596,931 $37,929,920 $16,424,645
|
MFS(R)
MASSACHUSETTS
INVESTORS
MFS(R) INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- -------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $3,162,372 $5,987,373
Receivable for shares of the Portfolios sold................ 502 --
Receivable for policy-related transactions.................. -- 8,212
---------- ----------
Total assets............................................. 3,162,874 5,995,585
---------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- 8,212
Payable for policy-related transactions..................... 502 --
---------- ----------
Total liabilities........................................ 502 8,212
---------- ----------
NET ASSETS.................................................. $3,162,372 $5,987,373
========== ==========
NET ASSETS:
Accumulation unit values.................................... $3,162,361 $5,987,170
Retained by AXA Equitable in Separate Account FP............ 11 203
---------- ----------
TOTAL NET ASSETS............................................ $3,162,372 $5,987,373
========== ==========
Investments in shares of the Portfolios, at cost............ $3,281,447 $6,007,943
|
The accompanying notes are an integral part of these financial statements.
FSA-19
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $429,070,461 $59,926,393 $26,742,202 $33,346,910 $131,090,935
Receivable for shares of the Portfolios sold................ 81,329 161,523 575 -- 4,436
Receivable for policy-related transactions.................. -- -- -- 4,359 --
------------ ----------- ----------- ----------- ------------
Total assets............................................. 429,151,790 60,087,916 26,742,777 33,351,269 131,095,371
------------ ----------- ----------- ----------- ------------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. -- -- -- 4,495 --
Payable for policy-related transactions..................... 235,812 161,501 616 -- 5,159
------------ ----------- ----------- ----------- ------------
Total liabilities........................................ 235,812 161,501 616 4,495 5,159
------------ ----------- ----------- ----------- ------------
NET ASSETS.................................................. $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
NET ASSETS:
Accumulation unit values.................................... $428,093,247 $59,906,285 $26,625,175 $33,132,520 $131,004,803
Accumulation nonunitized.................................... 736,050 -- -- -- --
Retained by AXA Equitable in Separate Account FP............ 86,681 20,130 116,986 214,254 85,409
------------ ----------- ----------- ----------- ------------
TOTAL NET ASSETS............................................ $428,915,978 $59,926,415 $26,742,161 $33,346,774 $131,090,212
============ =========== =========== =========== ============
Investments in shares of the Portfolios, at cost............ $238,715,873 $62,934,325 $29,468,737 $27,465,338 $117,485,310
|
NATURAL
RESOURCES
PORTFOLIO
----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $1,916,069
Receivable for shares of the Portfolios sold................ 50,589
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 1,966,658
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 50,574
----------
Total liabilities........................................ 50,574
----------
NET ASSETS.................................................. $1,916,084
==========
NET ASSETS:
Accumulation unit values.................................... $1,916,084
Accumulation nonunitized.................................... --
Retained by AXA Equitable in Separate Account FP............ --
----------
TOTAL NET ASSETS............................................ $1,916,084
==========
Investments in shares of the Portfolios, at cost............ $2,278,593
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-20
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R) T. ROWE PRICE
STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $ 9,538,604 $13,050,978 $1,709,901 $ 9,625,883 $4,749,619
Receivable for shares of the Portfolios sold................ -- -- 13,110 32,931 170,855
Receivable for policy-related transactions.................. 8,936 22,095 -- -- --
----------- ----------- ---------- ----------- ----------
Total assets............................................. 9,547,540 13,073,073 1,723,011 9,658,814 4,920,474
----------- ----------- ---------- ----------- ----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 8,938 22,099 -- -- --
Payable for policy-related transactions..................... -- -- 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
Total liabilities........................................ 8,938 22,099 13,110 32,921 170,819
----------- ----------- ---------- ----------- ----------
NET ASSETS.................................................. $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
NET ASSETS:
Accumulation unit values.................................... $ 9,530,593 $13,050,450 $1,709,869 $ 9,625,893 $4,749,655
Retained by AXA Equitable in Separate Account FP............ 8,009 524 32 -- --
----------- ----------- ---------- ----------- ----------
TOTAL NET ASSETS............................................ $ 9,538,602 $13,050,974 $1,709,901 $ 9,625,893 $4,749,655
=========== =========== ========== =========== ==========
Investments in shares of the Portfolios, at cost............ $13,095,357 $15,784,271 $1,913,745 $10,092,255 $5,065,292
|
TARGET 2045
ALLOCATION*
-----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $2,830,234
Receivable for shares of the Portfolios sold................ 12,519
Receivable for policy-related transactions.................. --
----------
Total assets............................................. 2,842,753
----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. --
Payable for policy-related transactions..................... 12,518
----------
Total liabilities........................................ 12,518
----------
NET ASSETS.................................................. $2,830,235
==========
NET ASSETS:
Accumulation unit values.................................... $2,828,879
Retained by AXA Equitable in Separate Account FP............ 1,356
----------
TOTAL NET ASSETS............................................ $2,830,235
==========
Investments in shares of the Portfolios, at cost............ $3,009,453
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-21
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS GLOBAL BOND GROWTH GLOBAL HARD
ALLOCATION* VIP FUND VIP FUND VIP FUND ASSETS FUND
----------- ----------- ----------- ---------- -----------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $937,172 $17,139,895 $46,399,867 $4,402,872 $ 8,441,371
Receivable for shares of the Portfolios sold................ -- -- 142,964 -- 5,854
Receivable for policy-related transactions.................. 21,000 6,720 -- 115 --
-------- ----------- ----------- ---------- -----------
Total assets............................................. 958,172 17,146,615 46,542,831 4,402,987 8,447,225
-------- ----------- ----------- ---------- -----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 20,997 6,664 -- 115 --
Payable for policy-related transactions..................... -- -- 142,226 -- 5,855
-------- ----------- ----------- ---------- -----------
Total liabilities........................................ 20,997 6,664 142,226 115 5,855
-------- ----------- ----------- ---------- -----------
NET ASSETS.................................................. $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
NET ASSETS:
Accumulation unit values.................................... $937,175 $17,139,951 $46,400,212 $4,401,091 $ 8,440,872
Retained by AXA Equitable in Separate Account FP............ -- -- 393 1,781 498
-------- ----------- ----------- ---------- -----------
TOTAL NET ASSETS............................................ $937,175 $17,139,951 $46,400,605 $4,402,872 $ 8,441,370
======== =========== =========== ========== ===========
Investments in shares of the Portfolios, at cost............ $999,567 $17,956,273 $46,794,456 $5,140,526 $11,301,460
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
ASSETS:
Investments in shares of the Portfolios, at fair value...... $13,028,162
Receivable for shares of the Portfolios sold................ --
Receivable for policy-related transactions.................. 13,013
-----------
Total assets............................................. 13,041,175
-----------
LIABILITIES:
Payable for shares of the Portfolios purchased.............. 13,013
Payable for policy-related transactions..................... --
-----------
Total liabilities........................................ 13,013
-----------
NET ASSETS.................................................. $13,028,162
===========
NET ASSETS:
Accumulation unit values.................................... $13,016,072
Retained by AXA Equitable in Separate Account FP............ 12,090
-----------
TOTAL NET ASSETS............................................ $13,028,162
===========
Investments in shares of the Portfolios, at cost............ $13,377,187
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-22
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides the Portfolio shares held by the Variable
Investment Options of the Account:
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
1290 VT CONVERTIBLE SECURITIES.............................. B 119,703
1290 VT DOUBLELINE DYNAMIC ALLOCATION....................... B 1,014,274
1290 VT DOUBLELINE OPPORTUNISTIC BOND....................... B 62,901
1290 VT EQUITY INCOME....................................... A 1,182,345
1290 VT EQUITY INCOME....................................... B 3,983,917
1290 VT GAMCO MERGERS & ACQUISITIONS........................ A 60,181
1290 VT GAMCO MERGERS & ACQUISITIONS........................ B 1,221,476
1290 VT GAMCO SMALL COMPANY VALUE........................... A 140,596
1290 VT GAMCO SMALL COMPANY VALUE........................... B 3,109,813
1290 VT SMARTBETA EQUITY.................................... B 109,269
1290 VT SOCIALLY RESPONSIBLE................................ A 38,861
1290 VT SOCIALLY RESPONSIBLE................................ B 215,486
ALL ASSET GROWTH-ALT 20..................................... B 1,609,294
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.................................... CLASS 4 388,507
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)........ CLASS 4 922,847
AXA 400 MANAGED VOLATILITY.................................. B 243,969
AXA 500 MANAGED VOLATILITY.................................. B 471,708
AXA 2000 MANAGED VOLATILITY................................. B 237,371
AXA AGGRESSIVE ALLOCATION................................... A 5,593,117
AXA AGGRESSIVE ALLOCATION................................... B 7,818,963
AXA BALANCED STRATEGY....................................... B 2,674,588
AXA CONSERVATIVE ALLOCATION................................. A 2,219,396
AXA CONSERVATIVE ALLOCATION................................. B 822,329
AXA CONSERVATIVE GROWTH STRATEGY............................ B 526,438
AXA CONSERVATIVE STRATEGY................................... B 256,348
AXA CONSERVATIVE-PLUS ALLOCATION............................ A 1,814,262
AXA CONSERVATIVE-PLUS ALLOCATION............................ B 1,478,398
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ A 1,760,907
AXA GLOBAL EQUITY MANAGED VOLATILITY........................ B 6,307,150
AXA GROWTH STRATEGY......................................... B 3,521,111
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... A 1,310,238
AXA INTERNATIONAL CORE MANAGED VOLATILITY................... B 4,111,647
AXA INTERNATIONAL MANAGED VOLATILITY........................ B 304,458
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. A 1,296,990
AXA INTERNATIONAL VALUE MANAGED VOLATILITY.................. B 4,553,520
AXA LARGE CAP CORE MANAGED VOLATILITY....................... A 465,367
AXA LARGE CAP CORE MANAGED VOLATILITY....................... B 2,496,196
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... A 1,514,006
AXA LARGE CAP GROWTH MANAGED VOLATILITY..................... B 7,005,545
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... A 14,580,243
|
The accompanying notes are an integral part of these financial statements.
FSA-23
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
----------------- ---------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY...................... B 7,198,635
AXA MID CAP VALUE MANAGED VOLATILITY........................ A 11,391,959
AXA MID CAP VALUE MANAGED VOLATILITY........................ B 873,205
AXA MODERATE ALLOCATION..................................... A 50,308,539
AXA MODERATE ALLOCATION..................................... B 11,787,783
AXA MODERATE GROWTH STRATEGY................................ B 6,828,024
AXA MODERATE-PLUS ALLOCATION................................ A 15,908,384
AXA MODERATE-PLUS ALLOCATION................................ B 23,347,653
AXA/AB SMALL CAP GROWTH..................................... A 7,872,708
AXA/AB SMALL CAP GROWTH..................................... B 4,395,895
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ A 1,035,996
AXA/CLEARBRIDGE LARGE CAP GROWTH............................ B 6,219,307
AXA/JANUS ENTERPRISE........................................ A 1,091,561
AXA/JANUS ENTERPRISE........................................ B 1,418,463
AXA/LOOMIS SAYLES GROWTH.................................... A 1,986,582
AXA/LOOMIS SAYLES GROWTH.................................... B 3,311,787
BLACKROCK GLOBAL ALLOCATION V.I. FUND....................... CLASS III 419,823
CHARTER/SM /MULTI-SECTOR BOND............................... A 14,467,398
CHARTER/SM /MULTI-SECTOR BOND............................... B 3,909,782
CHARTER/SM /SMALL CAP GROWTH................................ B 1,040,450
CHARTER/SM /SMALL CAP VALUE................................. A 713,978
CHARTER/SM /SMALL CAP VALUE................................. B 903,430
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO...................... CLASS II 35,951
EQ/AMERICAN CENTURY MID CAP VALUE........................... B 2,635,637
EQ/BLACKROCK BASIC VALUE EQUITY............................. A 1,759,008
EQ/BLACKROCK BASIC VALUE EQUITY............................. B 7,243,855
EQ/CAPITAL GUARDIAN RESEARCH................................ A 680,669
EQ/CAPITAL GUARDIAN RESEARCH................................ B 4,354,667
EQ/COMMON STOCK INDEX....................................... A 42,889,495
EQ/COMMON STOCK INDEX....................................... B 6,920,955
EQ/CORE BOND INDEX.......................................... A 2,637,791
EQ/CORE BOND INDEX.......................................... B 2,486,532
EQ/EQUITY 500 INDEX......................................... A 13,331,857
EQ/EQUITY 500 INDEX......................................... B 6,574,184
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP.................. B 3,053,910
EQ/FRANKLIN RISING DIVIDENDS................................ B 2,085,433
EQ/FRANKLIN STRATEGIC INCOME................................ B 3,278,495
EQ/GLOBAL BOND PLUS......................................... A 850,983
EQ/GLOBAL BOND PLUS......................................... B 1,031,116
EQ/GOLDMAN SACHS MID CAP VALUE.............................. B 562,515
EQ/INTERMEDIATE GOVERNMENT BOND............................. A 2,931,643
EQ/INTERMEDIATE GOVERNMENT BOND............................. B 1,841,764
EQ/INTERNATIONAL EQUITY INDEX............................... A 26,378,022
EQ/INTERNATIONAL EQUITY INDEX............................... B 6,572,246
|
The accompanying notes are an integral part of these financial statements.
FSA-24
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
---------------- ---------------------
EQ/INVESCO COMSTOCK......................................... A 773,176
EQ/INVESCO COMSTOCK......................................... B 906,139
EQ/INVESCO GLOBAL REAL ESTATE............................... B 2,431,598
EQ/INVESCO INTERNATIONAL GROWTH............................. B 985,703
EQ/IVY ENERGY............................................... B 2,654,216
EQ/IVY MID CAP GROWTH....................................... B 3,001,771
EQ/IVY SCIENCE AND TECHNOLOGY............................... B 1,275,689
EQ/JPMORGAN VALUE OPPORTUNITIES............................. A 427,218
EQ/JPMORGAN VALUE OPPORTUNITIES............................. B 2,467,492
EQ/LARGE CAP GROWTH INDEX................................... A 1,450,724
EQ/LARGE CAP GROWTH INDEX................................... B 10,022,637
EQ/LARGE CAP VALUE INDEX.................................... A 1,390,918
EQ/LARGE CAP VALUE INDEX.................................... B 1,739,938
EQ/LAZARD EMERGING MARKETS EQUITY........................... B 2,739,826
EQ/MFS INTERNATIONAL GROWTH................................. B 6,910,220
EQ/MFS INTERNATIONAL VALUE.................................. B 4,184,162
EQ/MFS UTILITIES SERIES..................................... B 79,857
EQ/MID CAP INDEX............................................ A 2,743,114
EQ/MID CAP INDEX............................................ B 8,304,199
EQ/MONEY MARKET............................................. A 105,495,633
EQ/MONEY MARKET............................................. B 43,332,671
EQ/PIMCO REAL RETURN........................................ B 2,044,898
EQ/PIMCO TOTAL RETURN....................................... B 6,452,442
EQ/PIMCO ULTRA SHORT BOND................................... A 1,615,174
EQ/PIMCO ULTRA SHORT BOND................................... B 1,780,218
EQ/QUALITY BOND PLUS........................................ A 2,756,046
EQ/QUALITY BOND PLUS........................................ B 2,258,746
EQ/SMALL COMPANY INDEX...................................... A 5,079,561
EQ/SMALL COMPANY INDEX...................................... B 4,390,128
EQ/T. ROWE PRICE GROWTH STOCK............................... A 364,531
EQ/T. ROWE PRICE GROWTH STOCK............................... B 2,341,623
EQ/T. ROWE PRICE HEALTH SCIENCES............................ B 191,597
EQ/UBS GROWTH & INCOME...................................... B 1,473,204
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO............. SERVICE CLASS 2 69,294
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO .................... SERVICE CLASS 2 81,147
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO........... SERVICE CLASS 2 1,467,363
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO................... SERVICE CLASS 2 464,480
FIDELITY(R) VIP HIGH INCOME PORTFOLIO....................... SERVICE CLASS 2 550,624
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO............. SERVICE CLASS 2 3,060,139
FIDELITY(R) VIP MID CAP PORTFOLIO........................... SERVICE CLASS 2 972,939
FIDELITY(R) VIP VALUE PORTFOLIO............................. SERVICE CLASS 2 102,269
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO.................. SERVICE CLASS 2 25,661
|
The accompanying notes are an integral part of these financial statements.
FSA-25
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
SHARE CLASS** PORTFOLIO SHARES HELD
-------------------- ---------------------
FRANKLIN MUTUAL SHARES VIP FUND............................. CLASS 2 468,466
FRANKLIN SMALL CAP VALUE VIP FUND........................... CLASS 2 760,629
INVESCO V.I. DIVERSIFIED DIVIDEND FUND...................... SERIES II 574,462
INVESCO V.I. MID CAP CORE EQUITY FUND....................... SERIES II 325,850
INVESCO V.I. SMALL CAP EQUITY FUND.......................... SERIES II 337,897
IVY VIP GLOBAL EQUITY INCOME................................ CLASS II 76,292
IVY VIP HIGH INCOME......................................... CLASS II 10,641,803
IVY VIP SMALL CAP GROWTH.................................... CLASS II 1,608,282
MFS(R) INVESTORS TRUST SERIES............................... SERVICE CLASS 118,530
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO....... SERVICE CLASS 344,498
MULTIMANAGER AGGRESSIVE EQUITY.............................. A 7,249,289
MULTIMANAGER AGGRESSIVE EQUITY.............................. B 580,629
MULTIMANAGER CORE BOND...................................... A 1,992,977
MULTIMANAGER CORE BOND...................................... B 4,265,604
MULTIMANAGER MID CAP GROWTH................................. A 1,312,177
MULTIMANAGER MID CAP GROWTH................................. B 1,958,220
MULTIMANAGER MID CAP VALUE.................................. A 625,091
MULTIMANAGER MID CAP VALUE.................................. B 1,905,632
MULTIMANAGER TECHNOLOGY..................................... A 950,133
MULTIMANAGER TECHNOLOGY..................................... B 4,573,286
NATURAL RESOURCES PORTFOLIO................................. CLASS II 90,126
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO............. ADVISOR CLASS 1,566,273
T. ROWE PRICE EQUITY INCOME PORTFOLIO....................... CLASS II 560,850
TARGET 2015 ALLOCATION...................................... B 213,001
TARGET 2025 ALLOCATION...................................... B 942,405
TARGET 2035 ALLOCATION...................................... B 445,126
TARGET 2045 ALLOCATION...................................... B 264,833
TARGET 2055 ALLOCATION...................................... B 92,815
TEMPLETON DEVELOPING MARKETS VIP FUND....................... CLASS 2 2,007,013
TEMPLETON GLOBAL BOND VIP FUND.............................. CLASS 2 2,756,974
TEMPLETON GROWTH VIP FUND................................... CLASS 2 360,596
VANECK VIP GLOBAL HARD ASSETS FUND.......................... CLASS S 515,661
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX PORTFOLIO.. INVESTOR SHARE CLASS 342,576
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
FSA-26
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
The following table provides units outstanding and unit values associated with
the Variable Investment Options of the Account and is further categorized by
share class and contract charges:
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $ 12.19 13
1290 VT CONVERTIBLE SECURITIES.................... 0.00% B $121.88 5
1290 VT CONVERTIBLE SECURITIES.................... 0.60% B $119.95 3
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $ 10.87 97
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.00% B $118.12 77
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.60% B $114.18 5
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. 0.90% B $112.24 --
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $ 10.12 7
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.00% B $101.17 5
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. 0.60% B $100.17 1
1290 VT EQUITY INCOME............................. 0.00% A $165.68 4
1290 VT EQUITY INCOME............................. 0.60% A $154.41 22
1290 VT EQUITY INCOME............................. 0.80% A $150.81 --
1290 VT EQUITY INCOME............................. 0.90% A $149.05 2
1290 VT EQUITY INCOME............................. 0.00% B $228.29 55
1290 VT EQUITY INCOME............................. 0.60% B $152.60 15
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $ 14.18 27
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% A $141.81 2
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $145.88 13
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.00% B $181.95 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.60% B $135.96 37
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.80% B $132.79 --
1290 VT GAMCO MERGERS & ACQUISITIONS.............. 0.90% B $131.24 4
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $ 21.15 258
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% A $211.48 7
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $242.93 13
1290 VT GAMCO SMALL COMPANY VALUE................. 0.00% B $371.93 277
1290 VT GAMCO SMALL COMPANY VALUE................. 0.60% B $226.42 201
1290 VT GAMCO SMALL COMPANY VALUE................. 0.80% B $221.14 1
1290 VT GAMCO SMALL COMPANY VALUE................. 0.90% B $218.55 19
1290 VT SMARTBETA EQUITY.......................... 0.00% B $ 11.84 58
1290 VT SMARTBETA EQUITY.......................... 0.00% B $118.40 3
1290 VT SMARTBETA EQUITY.......................... 0.60% B $116.52 2
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% A $327.79 1
1290 VT SOCIALLY RESPONSIBLE...................... 0.00% B $205.36 5
1290 VT SOCIALLY RESPONSIBLE...................... 0.60% B $182.75 7
1290 VT SOCIALLY RESPONSIBLE...................... 0.80% B $175.75 --
1290 VT SOCIALLY RESPONSIBLE...................... 0.90% B $172.35 --
ALL ASSET GROWTH-ALT 20........................... 0.00% B $ 11.11 80
ALL ASSET GROWTH-ALT 20........................... 0.00% B $153.87 148
ALL ASSET GROWTH-ALT 20........................... 0.60% B $146.02 41
ALL ASSET GROWTH-ALT 20........................... 0.80% B $143.49 --
ALL ASSET GROWTH-ALT 20........................... 0.90% B $142.24 1
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $ 13.09 57
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.00% CLASS 4 $130.88 36
|
The accompanying notes are an integral part of these financial statements.
FSA-27
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.60% CLASS 4 $126.51 17
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.80% CLASS 4 $125.08 --
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... 0.90% CLASS 4 $124.37 5
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $ 11.03 254
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.00% CLASS 4 $110.32 99
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.60% CLASS 4 $106.64 45
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.80% CLASS 4 $105.43 --
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... 0.90% CLASS 4 $104.83 6
AXA 400 MANAGED VOLATILITY........................ 0.00% B $191.95 13
AXA 400 MANAGED VOLATILITY........................ 0.60% B $182.16 10
AXA 400 MANAGED VOLATILITY........................ 0.80% B $179.00 --
AXA 400 MANAGED VOLATILITY........................ 0.90% B $177.44 --
AXA 500 MANAGED VOLATILITY........................ 0.00% B $214.17 34
AXA 500 MANAGED VOLATILITY........................ 0.60% B $203.25 14
AXA 500 MANAGED VOLATILITY........................ 0.80% B $199.72 --
AXA 500 MANAGED VOLATILITY........................ 0.90% B $197.98 1
AXA 2000 MANAGED VOLATILITY....................... 0.00% B $179.09 16
AXA 2000 MANAGED VOLATILITY....................... 0.60% B $169.96 7
AXA 2000 MANAGED VOLATILITY....................... 0.80% B $167.01 --
AXA 2000 MANAGED VOLATILITY....................... 0.90% B $165.56 1
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $ 24.19 70
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $145.10 --
AXA AGGRESSIVE ALLOCATION......................... 0.00% A $240.35 111
AXA AGGRESSIVE ALLOCATION......................... 0.60% A $219.28 123
AXA AGGRESSIVE ALLOCATION......................... 0.80% A $212.64 1
AXA AGGRESSIVE ALLOCATION......................... 0.90% A $209.40 5
AXA AGGRESSIVE ALLOCATION......................... 0.00% B $235.46 295
AXA AGGRESSIVE ALLOCATION......................... 0.60% B $214.81 45
AXA BALANCED STRATEGY............................. 0.00% B $156.00 246
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $ 14.78 138
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $132.64 5
AXA CONSERVATIVE ALLOCATION....................... 0.00% A $162.27 37
AXA CONSERVATIVE ALLOCATION....................... 0.60% A $148.05 62
AXA CONSERVATIVE ALLOCATION....................... 0.80% A $143.57 --
AXA CONSERVATIVE ALLOCATION....................... 0.90% A $141.38 14
AXA CONSERVATIVE ALLOCATION....................... 0.00% B $158.96 35
AXA CONSERVATIVE ALLOCATION....................... 0.60% B $145.02 12
AXA CONSERVATIVE GROWTH STRATEGY.................. 0.00% B $146.65 48
AXA CONSERVATIVE STRATEGY......................... 0.00% B $128.64 23
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $ 17.11 126
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $137.55 --
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% A $181.08 32
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% A $165.20 48
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.80% A $160.20 1
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.90% A $157.76 2
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.00% B $177.40 63
AXA CONSERVATIVE-PLUS ALLOCATION.................. 0.60% B $161.84 14
|
The accompanying notes are an integral part of these financial statements.
FSA-28
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $ 25.35 32
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $358.64 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% A $577.44 44
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.00% B $309.60 88
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $272.24 210
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.60% B $369.11 11
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.80% B $260.76 1
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. 0.90% B $255.21 19
AXA GROWTH STRATEGY............................... 0.00% B $176.45 332
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% A $236.86 50
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% A $168.13 3
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.00% B $153.51 120
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.60% B $136.20 133
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.80% B $131.39 --
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... 0.90% B $128.46 18
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.00% B $120.70 26
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.60% B $114.55 3
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.80% B $112.56 --
AXA INTERNATIONAL MANAGED VOLATILITY.............. 0.90% B $111.58 --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $ 16.35 35
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $175.27 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% A $223.17 61
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% A $156.54 1
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.00% B $163.14 112
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $156.58 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.60% B $159.87 184
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.80% B $139.64 2
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ 0.90% B $150.30 23
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $ 29.69 13
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% A $333.18 12
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% A $229.45 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.00% B $214.54 74
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.60% B $190.70 37
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.80% B $183.32 --
AXA LARGE CAP CORE MANAGED VOLATILITY............. 0.90% B $179.74 2
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $ 34.99 13
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $342.43 --
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% A $450.72 94
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% A $275.09 6
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.00% B $430.17 84
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $216.95 41
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.60% B $377.58 379
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.80% B $361.45 5
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... 0.90% B $353.64 27
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $ 25.23 12
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $213.05 1
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $217.16 89
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% A $287.53 198
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $196.08 11
|
The accompanying notes are an integral part of these financial statements.
FSA-29
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% A $223.86 575
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.80% A $185.88 14
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% A $210.45 96
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.00% B $214.35 83
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $189.76 6
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.60% B $220.96 428
AXA LARGE CAP VALUE MANAGED VOLATILITY............ 0.90% B $207.72 --
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $ 30.35 16
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $269.59 1
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $348.51 23
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% A $374.40 106
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $255.98 4
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $297.15 19
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.60% A $305.90 314
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.80% A $292.83 3
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.90% A $286.51 24
AXA MID CAP VALUE MANAGED VOLATILITY.............. 0.00% B $347.03 35
AXA MODERATE ALLOCATION........................... 0.00% A $ 18.27 369
AXA MODERATE ALLOCATION........................... 0.00% A $137.48 4
AXA MODERATE ALLOCATION........................... 0.00% A $393.57 185
AXA MODERATE ALLOCATION........................... 0.60% A $832.85 627
AXA MODERATE ALLOCATION........................... 0.80% A $266.75 9
AXA MODERATE ALLOCATION........................... 0.90% A $335.95 129
AXA MODERATE ALLOCATION........................... 0.00% B $193.78 520
AXA MODERATE ALLOCATION........................... 0.60% B $175.85 289
AXA MODERATE GROWTH STRATEGY...................... 0.00% B $166.06 643
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $ 21.08 490
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $142.76 2
AXA MODERATE-PLUS ALLOCATION...................... 0.00% A $222.44 362
AXA MODERATE-PLUS ALLOCATION...................... 0.60% A $202.93 290
AXA MODERATE-PLUS ALLOCATION...................... 0.80% A $196.79 3
AXA MODERATE-PLUS ALLOCATION...................... 0.90% A $193.79 43
AXA MODERATE-PLUS ALLOCATION...................... 0.00% B $217.90 926
AXA MODERATE-PLUS ALLOCATION...................... 0.60% B $198.79 158
AXA/AB SMALL CAP GROWTH........................... 0.00% A $ 38.70 137
AXA/AB SMALL CAP GROWTH........................... 0.00% A $508.91 64
AXA/AB SMALL CAP GROWTH........................... 0.60% A $446.68 172
AXA/AB SMALL CAP GROWTH........................... 0.80% A $427.59 3
AXA/AB SMALL CAP GROWTH........................... 0.90% A $418.36 18
AXA/AB SMALL CAP GROWTH........................... 0.00% B $417.73 35
AXA/AB SMALL CAP GROWTH........................... 0.60% B $331.02 147
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $ 35.48 78
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $333.99 --
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% A $470.86 18
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.00% B $269.42 124
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.60% B $232.39 127
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.80% B $230.65 1
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. 0.90% B $226.20 11
|
The accompanying notes are an integral part of these financial statements.
FSA-30
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
AXA/JANUS ENTERPRISE.............................. 0.00% A $198.06 32
AXA/JANUS ENTERPRISE.............................. 0.60% A $184.59 59
AXA/JANUS ENTERPRISE.............................. 0.80% A $180.29 --
AXA/JANUS ENTERPRISE.............................. 0.90% A $178.18 5
AXA/JANUS ENTERPRISE.............................. 0.00% B $ 11.35 14
AXA/JANUS ENTERPRISE.............................. 0.00% B $286.64 65
AXA/JANUS ENTERPRISE.............................. 0.60% B $182.43 25
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $ 25.82 65
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% A $275.24 8
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% A $256.53 39
AXA/LOOMIS SAYLES GROWTH.......................... 0.80% A $250.55 --
AXA/LOOMIS SAYLES GROWTH.......................... 0.90% A $247.62 4
AXA/LOOMIS SAYLES GROWTH.......................... 0.00% B $336.10 60
AXA/LOOMIS SAYLES GROWTH.......................... 0.60% B $253.58 18
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $ 14.25 293
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. 0.00% CLASS III $142.46 9
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $ 14.66 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% A $238.57 67
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% A $393.16 82
CHARTER/SM /MULTI-SECTOR BOND..................... 0.80% A $154.48 3
CHARTER/SM /MULTI-SECTOR BOND..................... 0.90% A $229.10 17
CHARTER/SM /MULTI-SECTOR BOND..................... 0.00% B $144.32 43
CHARTER/SM /MULTI-SECTOR BOND..................... 0.60% B $110.73 75
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $156.94 1
CHARTER/SM /SMALL CAP GROWTH...................... 0.00% B $230.14 41
CHARTER/SM /SMALL CAP GROWTH...................... 0.60% B $146.34 19
CHARTER/SM/ SMALL CAP GROWTH...................... 0.80% B $142.95 --
CHARTER/SM/ SMALL CAP GROWTH...................... 0.90% B $141.28 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% A $293.02 36
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% A $267.34 1
CHARTER/SM/ SMALL CAP VALUE....................... 0.00% B $307.37 17
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $266.60 2
CHARTER/SM/ SMALL CAP VALUE....................... 0.60% B $273.81 27
CHARTER/SM/ SMALL CAP VALUE....................... 0.80% B $263.08 --
CHARTER/SM/ SMALL CAP VALUE....................... 0.90% B $257.41 --
CHARTER/SM /SMALL CAP VALUE....................... 0.90% B $257.99 2
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ 0.00% CLASS II $ 11.07 56
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $ 21.75 242
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.00% B $217.49 116
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.60% B $206.40 79
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.80% B $202.82 --
EQ/AMERICAN CENTURY MID CAP VALUE................. 0.90% B $201.05 6
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $ 27.63 156
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $258.09 3
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% A $360.36 83
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% A $328.79 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.00% B $474.29 116
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $272.25 22
|
The accompanying notes are an integral part of these financial statements.
FSA-31
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.60% B $ 416.31 188
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.80% B $ 398.52 2
EQ/BLACKROCK BASIC VALUE EQUITY................... 0.90% B $ 389.92 19
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 35.85 36
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 310.61 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% A $ 421.95 30
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% A $ 262.91 2
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.00% B $ 320.51 39
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.60% B $ 285.30 269
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.80% B $ 274.39 3
EQ/CAPITAL GUARDIAN RESEARCH...................... 0.90% B $ 269.10 26
EQ/COMMON STOCK INDEX............................. 0.00% A $ 32.85 216
EQ/COMMON STOCK INDEX............................. 0.00% A $ 677.71 259
EQ/COMMON STOCK INDEX............................. 0.60% A $1,689.68 586
EQ/COMMON STOCK INDEX............................. 0.80% A $ 403.29 27
EQ/COMMON STOCK INDEX............................. 0.90% A $ 683.50 134
EQ/COMMON STOCK INDEX............................. 0.00% B $ 211.64 306
EQ/COMMON STOCK INDEX............................. 0.60% B $ 226.64 620
EQ/CORE BOND INDEX................................ 0.00% A $ 137.67 100
EQ/CORE BOND INDEX................................ 0.00% A $ 143.89 4
EQ/CORE BOND INDEX................................ 0.60% A $ 133.22 3
EQ/CORE BOND INDEX................................ 0.60% A $ 159.26 60
EQ/CORE BOND INDEX................................ 0.80% A $ 125.45 --
EQ/CORE BOND INDEX................................ 0.90% A $ 123.31 9
EQ/CORE BOND INDEX................................ 0.00% B $ 143.04 98
EQ/CORE BOND INDEX................................ 0.60% B $ 155.62 10
EQ/CORE BOND INDEX................................ 0.60% B $ 158.32 54
EQ/EQUITY 500 INDEX............................... 0.00% A $ 32.35 741
EQ/EQUITY 500 INDEX............................... 0.00% A $ 777.94 262
EQ/EQUITY 500 INDEX............................... 0.60% A $ 676.96 391
EQ/EQUITY 500 INDEX............................... 0.80% A $ 453.55 8
EQ/EQUITY 500 INDEX............................... 0.90% A $ 628.01 68
EQ/EQUITY 500 INDEX............................... 0.00% B $ 235.43 722
EQ/EQUITY 500 INDEX............................... 0.60% B $ 216.18 436
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 32.04 179
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 211.91 110
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.00% B $ 401.90 22
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.60% B $ 201.11 274
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.80% B $ 197.61 --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP........ 0.90% B $ 195.89 4
EQ/FRANKLIN RISING DIVIDENDS...................... 0.00% B $ 232.46 132
EQ/FRANKLIN RISING DIVIDENDS...................... 0.60% B $ 220.61 90
EQ/FRANKLIN RISING DIVIDENDS...................... 0.80% B $ 216.78 --
EQ/FRANKLIN RISING DIVIDENDS...................... 0.90% B $ 214.89 7
EQ/FRANKLIN STRATEGIC INCOME...................... 0.00% B $ 136.15 171
EQ/FRANKLIN STRATEGIC INCOME...................... 0.60% B $ 129.21 68
EQ/FRANKLIN STRATEGIC INCOME...................... 0.80% B $ 126.96 --
EQ/FRANKLIN STRATEGIC INCOME...................... 0.90% B $ 125.86 11
|
The accompanying notes are an integral part of these financial statements.
FSA-32
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/GLOBAL BOND PLUS............................... 0.00% A $ 12.44 51
EQ/GLOBAL BOND PLUS............................... 0.00% A $142.20 18
EQ/GLOBAL BOND PLUS............................... 0.60% A $124.12 26
EQ/GLOBAL BOND PLUS............................... 0.80% A $121.23 --
EQ/GLOBAL BOND PLUS............................... 0.90% A $119.81 9
EQ/GLOBAL BOND PLUS............................... 0.00% B $135.52 51
EQ/GLOBAL BOND PLUS............................... 0.60% B $122.66 18
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.00% B $182.47 35
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.60% B $173.16 12
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.80% B $170.16 --
EQ/GOLDMAN SACHS MID CAP VALUE.................... 0.90% B $168.67 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $ 11.39 88
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% A $237.70 46
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% A $251.73 60
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.80% A $177.01 1
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.90% A $199.78 12
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $125.27 5
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.00% B $170.68 30
EQ/INTERMEDIATE GOVERNMENT BOND................... 0.60% B $151.63 84
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $ 17.22 319
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% A $199.45 274
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% A $172.89 836
EQ/INTERNATIONAL EQUITY INDEX..................... 0.80% A $139.66 7
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% A $160.91 79
EQ/INTERNATIONAL EQUITY INDEX..................... 0.00% B $136.17 189
EQ/INTERNATIONAL EQUITY INDEX..................... 0.60% B $128.40 218
EQ/INTERNATIONAL EQUITY INDEX..................... 0.90% B $118.46 --
EQ/INVESCO COMSTOCK............................... 0.00% A $ 11.79 22
EQ/INVESCO COMSTOCK............................... 0.00% A $169.29 37
EQ/INVESCO COMSTOCK............................... 0.60% A $157.77 28
EQ/INVESCO COMSTOCK............................... 0.80% A $154.10 --
EQ/INVESCO COMSTOCK............................... 0.90% A $152.29 5
EQ/INVESCO COMSTOCK............................... 0.00% B $215.50 54
EQ/INVESCO COMSTOCK............................... 0.60% B $155.85 14
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $ 16.47 251
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.00% B $164.67 143
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.60% B $156.28 48
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.80% B $153.57 --
EQ/INVESCO GLOBAL REAL ESTATE..................... 0.90% B $152.23 7
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $ 14.21 330
EQ/INVESCO INTERNATIONAL GROWTH................... 0.00% B $142.11 136
EQ/INVESCO INTERNATIONAL GROWTH................... 0.60% B $134.86 55
EQ/INVESCO INTERNATIONAL GROWTH................... 0.80% B $132.52 --
EQ/INVESCO INTERNATIONAL GROWTH................... 0.90% B $131.36 5
EQ/IVY ENERGY..................................... 0.00% B $ 7.26 119
EQ/IVY ENERGY..................................... 0.00% B $ 72.62 88
EQ/IVY ENERGY..................................... 0.60% B $ 68.92 42
EQ/IVY ENERGY..................................... 0.80% B $ 67.72 --
EQ/IVY ENERGY..................................... 0.90% B $ 67.13 1
|
The accompanying notes are an integral part of these financial statements.
FSA-33
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/IVY MID CAP GROWTH............................. 0.00% B $ 23.22 127
EQ/IVY MID CAP GROWTH............................. 0.00% B $232.22 81
EQ/IVY MID CAP GROWTH............................. 0.60% B $220.39 49
EQ/IVY MID CAP GROWTH............................. 0.80% B $216.56 --
EQ/IVY MID CAP GROWTH............................. 0.90% B $214.67 3
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $ 25.37 83
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $169.19 100
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.00% B $253.69 17
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.60% B $163.54 51
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.80% B $161.69 --
EQ/IVY SCIENCE AND TECHNOLOGY..................... 0.90% B $160.77 6
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $ 30.81 90
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $269.07 --
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% A $350.51 10
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.00% B $327.29 41
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $201.61 8
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.60% B $287.28 63
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.80% B $275.00 1
EQ/JPMORGAN VALUE OPPORTUNITIES................... 0.90% B $269.06 14
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $ 41.17 52
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $367.70 2
EQ/LARGE CAP GROWTH INDEX......................... 0.00% A $442.02 37
EQ/LARGE CAP GROWTH INDEX......................... 0.60% A $290.81 1
EQ/LARGE CAP GROWTH INDEX......................... 0.00% B $219.96 131
EQ/LARGE CAP GROWTH INDEX......................... 0.60% B $195.52 486
EQ/LARGE CAP GROWTH INDEX......................... 0.80% B $187.95 5
EQ/LARGE CAP GROWTH INDEX......................... 0.90% B $184.28 22
EQ/LARGE CAP VALUE INDEX.......................... 0.00% A $108.69 38
EQ/LARGE CAP VALUE INDEX.......................... 0.60% A $101.30 37
EQ/LARGE CAP VALUE INDEX.......................... 0.80% A $ 98.94 --
EQ/LARGE CAP VALUE INDEX.......................... 0.90% A $ 97.78 31
EQ/LARGE CAP VALUE INDEX.......................... 0.00% B $125.20 88
EQ/LARGE CAP VALUE INDEX.......................... 0.60% B $100.13 26
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $ 10.83 527
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.00% B $108.31 317
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.60% B $102.79 113
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.80% B $101.00 --
EQ/LAZARD EMERGING MARKETS EQUITY................. 0.90% B $100.12 9
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $141.11 68
EQ/MFS INTERNATIONAL GROWTH....................... 0.00% B $225.18 96
EQ/MFS INTERNATIONAL GROWTH....................... 0.60% B $131.51 97
EQ/MFS INTERNATIONAL GROWTH....................... 0.80% B $128.45 --
EQ/MFS INTERNATIONAL GROWTH....................... 0.90% B $126.94 20
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $ 19.84 589
EQ/MFS INTERNATIONAL VALUE........................ 0.00% B $198.35 297
EQ/MFS INTERNATIONAL VALUE........................ 0.60% B $188.24 153
EQ/MFS INTERNATIONAL VALUE........................ 0.80% B $184.97 --
EQ/MFS INTERNATIONAL VALUE........................ 0.90% B $183.36 18
|
The accompanying notes are an integral part of these financial statements.
FSA-34
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/MFS UTILITIES SERIES........................... 0.00% B $ 19.86 101
EQ/MFS UTILITIES SERIES........................... 0.00% B $198.59 1
EQ/MID CAP INDEX.................................. 0.00% A $ 35.31 125
EQ/MID CAP INDEX.................................. 0.00% A $273.01 8
EQ/MID CAP INDEX.................................. 0.00% A $403.99 64
EQ/MID CAP INDEX.................................. 0.60% A $273.70 5
EQ/MID CAP INDEX.................................. 0.00% B $258.04 160
EQ/MID CAP INDEX.................................. 0.60% B $231.08 241
EQ/MID CAP INDEX.................................. 0.80% B $222.70 1
EQ/MID CAP INDEX.................................. 0.90% B $218.63 15
EQ/MONEY MARKET................................... 0.00% A $ 10.17 58
EQ/MONEY MARKET................................... 0.00% A $ 10.21 980
EQ/MONEY MARKET................................... 0.00% A $174.96 180
EQ/MONEY MARKET................................... 0.60% A $242.58 235
EQ/MONEY MARKET................................... 0.80% A $135.63 1
EQ/MONEY MARKET................................... 0.90% A $149.35 15
EQ/MONEY MARKET................................... 0.00% B $133.70 148
EQ/MONEY MARKET................................... 0.60% B $124.25 183
EQ/PIMCO REAL RETURN.............................. 0.00% B $ 12.32 119
EQ/PIMCO REAL RETURN.............................. 0.00% B $123.20 134
EQ/PIMCO REAL RETURN.............................. 0.60% B $116.92 48
EQ/PIMCO REAL RETURN.............................. 0.80% B $114.89 --
EQ/PIMCO REAL RETURN.............................. 0.90% B $113.89 4
EQ/PIMCO TOTAL RETURN............................. 0.00% B $ 12.99 219
EQ/PIMCO TOTAL RETURN............................. 0.00% B $129.93 302
EQ/PIMCO TOTAL RETURN............................. 0.60% B $123.31 183
EQ/PIMCO TOTAL RETURN............................. 0.80% B $121.17 1
EQ/PIMCO TOTAL RETURN............................. 0.90% B $120.11 30
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% A $121.24 57
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $102.86 2
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% A $112.99 69
EQ/PIMCO ULTRA SHORT BOND......................... 0.80% A $110.36 --
EQ/PIMCO ULTRA SHORT BOND......................... 0.90% A $109.07 8
EQ/PIMCO ULTRA SHORT BOND......................... 0.00% B $124.24 101
EQ/PIMCO ULTRA SHORT BOND......................... 0.60% B $112.39 44
EQ/QUALITY BOND PLUS.............................. 0.00% A $ 12.45 62
EQ/QUALITY BOND PLUS.............................. 0.00% A $257.31 26
EQ/QUALITY BOND PLUS.............................. 0.60% A $208.51 67
EQ/QUALITY BOND PLUS.............................. 0.80% A $188.46 1
EQ/QUALITY BOND PLUS.............................. 0.90% A $193.19 7
EQ/QUALITY BOND PLUS.............................. 0.00% B $173.62 38
EQ/QUALITY BOND PLUS.............................. 0.60% B $154.00 78
EQ/SMALL COMPANY INDEX............................ 0.00% A $ 30.87 108
EQ/SMALL COMPANY INDEX............................ 0.00% A $183.31 1
EQ/SMALL COMPANY INDEX............................ 0.00% A $457.91 50
EQ/SMALL COMPANY INDEX............................ 0.60% A $285.70 8
EQ/SMALL COMPANY INDEX............................ 0.60% A $368.53 46
EQ/SMALL COMPANY INDEX............................ 0.80% A $355.04 --
EQ/SMALL COMPANY INDEX............................ 0.90% A $349.48 6
|
The accompanying notes are an integral part of these financial statements.
FSA-35
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
EQ/SMALL COMPANY INDEX................................. 0.00% B $332.45 99
EQ/SMALL COMPANY INDEX................................. 0.60% B $320.75 --
EQ/SMALL COMPANY INDEX................................. 0.60% B $324.91 26
EQ/SMALL COMPANY INDEX................................. 0.90% B $305.45 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $ 43.42 352
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $249.97 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% A $250.49 --
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% A $233.23 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $246.83 30
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.00% B $293.39 135
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.60% B $230.30 207
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.80% B $225.02 1
EQ/T. ROWE PRICE GROWTH STOCK.......................... 0.90% B $222.42 17
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $ 39.13 127
EQ/T. ROWE PRICE HEALTH SCIENCES....................... 0.00% B $391.31 7
EQ/UBS GROWTH & INCOME................................. 0.00% B $167.13 1
EQ/UBS GROWTH & INCOME................................. 0.00% B $240.25 22
EQ/UBS GROWTH & INCOME................................. 0.60% B $155.77 34
EQ/UBS GROWTH & INCOME................................. 0.80% B $152.14 --
EQ/UBS GROWTH & INCOME................................. 0.90% B $150.36 3
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 24.21 10
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO........ 0.00% SERVICE CLASS 2 $250.34 4
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $ 28.25 46
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO................ 0.00% SERVICE CLASS 2 $300.33 1
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $ 10.21 101
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO...... 0.00% SERVICE CLASS 2 $102.14 4
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $ 30.46 56
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $220.09 19
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.00% SERVICE CLASS 2 $299.00 1
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.60% SERVICE CLASS 2 $208.87 11
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO.............. 0.90% SERVICE CLASS 2 $203.46 1
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $ 24.37 55
FIDELITY(R) VIP HIGH INCOME PORTFOLIO.................. 0.00% SERVICE CLASS 2 $253.48 5
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $ 16.07 619
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO........ 0.00% SERVICE CLASS 2 $176.56 152
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $ 31.12 177
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $188.62 66
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.00% SERVICE CLASS 2 $495.85 7
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.60% SERVICE CLASS 2 $179.00 37
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.80% SERVICE CLASS 2 $175.89 --
FIDELITY(R) VIP MID CAP PORTFOLIO...................... 0.90% SERVICE CLASS 2 $174.36 2
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $ 32.58 35
FIDELITY(R) VIP VALUE PORTFOLIO........................ 0.00% SERVICE CLASS 2 $294.80 1
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $ 34.57 7
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO............. 0.00% SERVICE CLASS 2 $354.46 --
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $ 17.39 41
FRANKLIN MUTUAL SHARES VIP FUND........................ 0.00% CLASS 2 $173.91 30
|
The accompanying notes are an integral part of these financial statements.
FSA-36
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
FRANKLIN MUTUAL SHARES VIP FUND................... 0.60% CLASS 2 $ 165.05 13
FRANKLIN MUTUAL SHARES VIP FUND................... 0.80% CLASS 2 $ 162.18 --
FRANKLIN MUTUAL SHARES VIP FUND................... 0.90% CLASS 2 $ 160.77 1
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 19.38 173
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.00% CLASS 2 $ 193.81 19
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.60% CLASS 2 $ 183.93 20
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.80% CLASS 2 $ 180.74 --
FRANKLIN SMALL CAP VALUE VIP FUND................. 0.90% CLASS 2 $ 179.16 2
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 18.73 568
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ 0.00% SERIES II $ 187.25 15
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 15.98 27
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.00% SERIES II $ 159.75 11
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.60% SERIES II $ 151.61 8
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.80% SERIES II $ 148.98 --
INVESCO V.I. MID CAP CORE EQUITY FUND............. 0.90% SERIES II $ 147.68 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 17.52 22
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.00% SERIES II $ 175.15 20
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.60% SERIES II $ 166.22 7
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.80% SERIES II $ 163.34 --
INVESCO V.I. SMALL CAP EQUITY FUND................ 0.90% SERIES II $ 161.91 --
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 17.57 29
IVY VIP GLOBAL EQUITY INCOME...................... 0.00% CLASS II $ 175.70 --
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 11.97 471
IVY VIP HIGH INCOME............................... 0.00% CLASS II $ 119.67 181
IVY VIP HIGH INCOME............................... 0.60% CLASS II $ 115.67 66
IVY VIP HIGH INCOME............................... 0.80% CLASS II $ 114.36 --
IVY VIP HIGH INCOME............................... 0.90% CLASS II $ 113.71 4
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 19.24 37
IVY VIP SMALL CAP GROWTH.......................... 0.00% CLASS II $ 192.42 36
IVY VIP SMALL CAP GROWTH.......................... 0.60% CLASS II $ 182.61 23
IVY VIP SMALL CAP GROWTH.......................... 0.80% CLASS II $ 179.44 --
IVY VIP SMALL CAP GROWTH.......................... 0.90% CLASS II $ 177.87 2
MFS(R) INVESTORS TRUST SERIES..................... 0.00% SERVICE CLASS $ 218.20 9
MFS(R) INVESTORS TRUST SERIES..................... 0.60% SERVICE CLASS $ 207.08 5
MFS(R) INVESTORS TRUST SERIES..................... 0.80% SERVICE CLASS $ 203.49 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.00% SERVICE CLASS $ 243.20 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.60% SERVICE CLASS $ 230.81 13
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.80% SERVICE CLASS $ 226.80 --
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ 0.90% SERVICE CLASS $ 224.83 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 37.47 15
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 212.03 --
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% A $ 390.01 130
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $ 289.95 3
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% A $1,472.64 215
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.80% A $ 213.59 13
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.90% A $ 380.73 66
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.00% B $ 198.63 61
MULTIMANAGER AGGRESSIVE EQUITY.................... 0.60% B $ 177.24 107
|
The accompanying notes are an integral part of these financial statements.
FSA-37
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- ----------------- ---------- -----------
MULTIMANAGER CORE BOND............................ 0.00% A $ 14.28 87
MULTIMANAGER CORE BOND............................ 0.00% A $168.48 --
MULTIMANAGER CORE BOND............................ 0.00% A $178.30 97
MULTIMANAGER CORE BOND............................ 0.60% A $169.75 3
MULTIMANAGER CORE BOND............................ 0.00% B $183.79 100
MULTIMANAGER CORE BOND............................ 0.60% B $165.92 121
MULTIMANAGER CORE BOND............................ 0.80% B $160.33 --
MULTIMANAGER CORE BOND............................ 0.90% B $157.61 15
MULTIMANAGER MID CAP GROWTH....................... 0.00% A $457.16 24
MULTIMANAGER MID CAP GROWTH....................... 0.60% A $252.28 1
MULTIMANAGER MID CAP GROWTH....................... 0.00% B $403.71 11
MULTIMANAGER MID CAP GROWTH....................... 0.60% B $235.29 41
MULTIMANAGER MID CAP GROWTH....................... 0.80% B $355.92 --
MULTIMANAGER MID CAP GROWTH....................... 0.90% B $223.50 6
MULTIMANAGER MID CAP VALUE........................ 0.00% A $ 29.99 15
MULTIMANAGER MID CAP VALUE........................ 0.00% A $263.82 --
MULTIMANAGER MID CAP VALUE........................ 0.00% A $400.77 19
MULTIMANAGER MID CAP VALUE........................ 0.60% A $240.23 1
MULTIMANAGER MID CAP VALUE........................ 0.00% B $262.46 17
MULTIMANAGER MID CAP VALUE........................ 0.60% B $236.93 78
MULTIMANAGER MID CAP VALUE........................ 0.80% B $228.95 --
MULTIMANAGER MID CAP VALUE........................ 0.90% B $225.07 8
MULTIMANAGER TECHNOLOGY........................... 0.00% A $ 51.76 37
MULTIMANAGER TECHNOLOGY........................... 0.00% A $723.43 28
MULTIMANAGER TECHNOLOGY........................... 0.60% A $365.30 3
MULTIMANAGER TECHNOLOGY........................... 0.00% B $588.13 46
MULTIMANAGER TECHNOLOGY........................... 0.60% B $327.27 234
MULTIMANAGER TECHNOLOGY........................... 0.80% B $518.52 1
MULTIMANAGER TECHNOLOGY........................... 0.90% B $310.88 12
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 12.85 72
NATURAL RESOURCES PORTFOLIO....................... 0.00% CLASS II $ 49.95 20
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.00% ADVISOR CLASS $ 62.55 116
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.60% ADVISOR CLASS $ 59.36 30
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.80% ADVISOR CLASS $ 58.33 --
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO... 0.90% ADVISOR CLASS $ 57.82 8
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.00% CLASS II $189.91 41
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.60% CLASS II $180.23 26
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.80% CLASS II $177.10 --
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. 0.90% CLASS II $175.55 3
TARGET 2015 ALLOCATION............................ 0.00% B $ 19.19 41
TARGET 2015 ALLOCATION............................ 0.00% B $150.86 6
TARGET 2025 ALLOCATION............................ 0.00% B $ 21.74 95
TARGET 2025 ALLOCATION............................ 0.00% B $109.58 4
TARGET 2025 ALLOCATION............................ 0.00% B $161.71 22
TARGET 2025 ALLOCATION............................ 0.60% B $107.18 33
TARGET 2025 ALLOCATION............................ 0.80% B $106.39 --
TARGET 2035 ALLOCATION............................ 0.00% B $ 23.39 57
TARGET 2035 ALLOCATION............................ 0.00% B $110.83 5
|
The accompanying notes are an integral part of these financial statements.
FSA-38
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
DECEMBER 31, 2018
UNITS
CONTRACT OUTSTANDING
CHARGES* SHARE CLASS** UNIT VALUE (000'S)***
-------- -------------------- ---------- -----------
TARGET 2035 ALLOCATION............................ 0.00% B $167.54 9
TARGET 2035 ALLOCATION............................ 0.60% B $108.41 12
TARGET 2045 ALLOCATION............................ 0.00% B $ 24.87 36
TARGET 2045 ALLOCATION............................ 0.00% B $111.69 9
TARGET 2045 ALLOCATION............................ 0.00% B $170.79 4
TARGET 2045 ALLOCATION............................ 0.60% B $109.25 2
TARGET 2055 ALLOCATION............................ 0.00% B $ 11.41 8
TARGET 2055 ALLOCATION............................ 0.00% B $114.10 6
TARGET 2055 ALLOCATION............................ 0.60% B $111.61 1
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.00% CLASS 2 $109.63 93
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.60% CLASS 2 $104.04 35
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.80% CLASS 2 $102.24 --
TEMPLETON DEVELOPING MARKETS VIP FUND............. 0.90% CLASS 2 $101.35 32
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $ 12.71 304
TEMPLETON GLOBAL BOND VIP FUND.................... 0.00% CLASS 2 $127.06 236
TEMPLETON GLOBAL BOND VIP FUND.................... 0.60% CLASS 2 $120.58 93
TEMPLETON GLOBAL BOND VIP FUND.................... 0.80% CLASS 2 $118.49 --
TEMPLETON GLOBAL BOND VIP FUND.................... 0.90% CLASS 2 $117.46 10
TEMPLETON GROWTH VIP FUND......................... 0.00% CLASS 2 $154.60 18
TEMPLETON GROWTH VIP FUND......................... 0.60% CLASS 2 $146.72 9
TEMPLETON GROWTH VIP FUND......................... 0.80% CLASS 2 $144.17 --
TEMPLETON GROWTH VIP FUND......................... 0.90% CLASS 2 $142.91 2
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.00% CLASS S $ 59.79 102
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.60% CLASS S $ 56.74 40
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.80% CLASS S $ 55.76 --
VANECK VIP GLOBAL HARD ASSETS FUND................ 0.90% CLASS S $ 55.27 1
VANGUARD VARIABLE INSURANCE FUND -- EQUITY INDEX
PORTFOLIO........................................ 0.60% INVESTOR SHARE CLASS $271.11 48
|
The accompanying notes are an integral part of these financial statements.
* Contract charges reflect the annual mortality, expense risk, financial
accounting and other expenses related to the Variable Investment Options.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
***Variable Investment Options where Units Outstanding are less than 500 are
denoted by a --.
FSA-39
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
1290 VT 1290 VT
1290 VT DOUBLELINE DOUBLELINE 1290 VT GAMCO
CONVERTIBLE DYNAMIC OPPORTUNISTIC 1290 VT EQUITY MERGERS &
SECURITIES* ALLOCATION* BOND* INCOME* ACQUISITIONS*
----------- ----------- ------------- -------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 29,525 $ 187,110 $ 17,594 $ 437,285 $ 235,744
Expenses:
Asset-based charges...................................... 2,294 3,877 266 43,938 38,148
--------- ----------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 27,231 183,233 17,328 393,347 197,596
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,812 74,977 (4,083) (151,687) (60,749)
Net realized gain distribution from the Portfolios....... 28,380 286,690 -- 5,900,263 431,910
--------- ----------- -------- ----------- -----------
Net realized gain (loss)................................... 30,192 361,667 (4,083) 5,748,576 371,161
--------- ----------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (131,330) (1,013,423) (14,411) (8,691,132) (1,393,740)
--------- ----------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (101,138) (651,756) (18,494) (2,942,556) (1,022,579)
--------- ----------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (73,907) $ (468,523) $ (1,166) $(2,549,209) $ (824,983)
========= =========== ======== =========== ===========
|
1290 VT GAMCO
SMALL COMPANY
VALUE*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,072,954
Expenses:
Asset-based charges...................................... 385,861
------------
NET INVESTMENT INCOME (LOSS)................................ 687,093
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 8,163,083
Net realized gain distribution from the Portfolios....... 8,697,766
------------
Net realized gain (loss)................................... 16,860,849
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (47,823,307)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (30,962,458)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(30,275,365)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-40
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AMERICAN FUNDS
INSURANCE
SERIES(R)/ /GLOBAL
1290 VT SMALL
SMARTBETA 1290 VT SOCIALLY ALL ASSET CAPITALIZATION
EQUITY* RESPONSIBLE* GROWTH-ALT 20* FUND/SM/
--------- ---------------- -------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 16,542 $ 29,568 $ 582,071 $ 1,836
Expenses:
Asset-based charges...................................... 1,366 8,928 34,176 18,804
--------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 15,176 20,640 547,895 (16,968)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 19,022 69,388 273,364 (10,564)
Net realized gain distribution from the Portfolios....... 48,283 77,370 1,029,563 367,949
--------- --------- ----------- -----------
Net realized gain (loss)................................... 67,305 146,758 1,302,927 357,385
--------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (170,751) (310,402) (4,268,829) (1,368,473)
--------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (103,446) (163,644) (2,965,902) (1,011,088)
--------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (88,270) $(143,004) $(2,418,007) $(1,028,056)
========= ========= =========== ===========
|
AMERICAN FUNDS
INSURANCE AXA 400
SERIES(R)/ /NEW MANAGED
WORLD FUND(R)// VOLATILITY*
--------------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 131,103 $ 48,767
Expenses:
Asset-based charges...................................... 31,103 14,831
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 100,000 33,936
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 378,720 114,935
Net realized gain distribution from the Portfolios....... 395,347 376,170
----------- -----------
Net realized gain (loss)................................... 774,067 491,105
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,640,473) (1,143,278)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (2,866,406) (652,173)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(2,766,406) $ (618,237)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-41
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA 500 AXA 2000 AXA
MANAGED MANAGED AXA AGGRESSIVE AXA BALANCED CONSERVATIVE
VOLATILITY* VOLATILITY* ALLOCATION* STRATEGY* ALLOCATION*
----------- ----------- -------------- ------------ ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 125,442 $ 37,036 $ 2,405,923 $ 493,984 $ 427,441
Expenses:
Asset-based charges...................................... 21,218 10,545 259,494 -- 90,271
----------- ----------- ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 104,224 26,491 2,146,429 493,984 337,170
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 391,508 121,872 3,175,762 504,832 (134,573)
Net realized gain distribution from the Portfolios....... 248,666 297,800 8,449,143 840,116 668,840
----------- ----------- ------------ ----------- -----------
Net realized gain (loss)................................... 640,174 419,672 11,624,905 1,344,948 534,267
----------- ----------- ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,453,693) (1,047,416) (26,889,043) (3,504,352) (1,402,478)
----------- ----------- ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (813,519) (627,744) (15,264,138) (2,159,404) (868,211)
----------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (709,295) $ (601,253) $(13,117,709) $(1,665,420) $ (531,041)
=========== =========== ============ =========== ===========
|
AXA
CONSERVATIVE
GROWTH
STRATEGY*
------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 90,726
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 90,726
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 93,339
Net realized gain distribution from the Portfolios....... 157,351
---------
Net realized gain (loss)................................... 250,690
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (584,510)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (333,820)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(243,094)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-42
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA GLOBAL AXA
AXA CONSERVATIVE- EQUITY INTERNATIONAL
CONSERVATIVE PLUS MANAGED AXA GROWTH CORE MANAGED
STRATEGY* ALLOCATION* VOLATILITY* STRATEGY* VOLATILITY*
------------ ------------- ------------ ----------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 37,655 $ 469,764 $ 1,447,708 $ 758,543 $ 1,023,445
Expenses:
Asset-based charges...................................... -- 71,389 495,063 -- 157,039
--------- ----------- ------------ ----------- ------------
NET INVESTMENT INCOME (LOSS)................................ 37,655 398,375 952,645 758,543 866,406
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 15,262 56,560 4,868,477 1,376,410 699,419
Net realized gain distribution from the Portfolios....... 66,473 1,290,524 10,275,682 1,084,145 --
--------- ----------- ------------ ----------- ------------
Net realized gain (loss)................................... 81,735 1,347,084 15,144,159 2,460,555 699,419
--------- ----------- ------------ ----------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (157,944) (2,934,113) (33,462,490) (7,047,901) (10,752,214)
--------- ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (76,209) (1,587,029) (18,318,331) (4,587,346) (10,052,795)
--------- ----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (38,554) $(1,188,654) $(17,365,686) $(3,828,803) $ (9,186,389)
========= =========== ============ =========== ============
|
AXA
INTERNATIONAL
MANAGED
VOLATILITY*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 72,950
Expenses:
Asset-based charges...................................... 2,476
---------
NET INVESTMENT INCOME (LOSS)................................ 70,474
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 10,355
Net realized gain distribution from the Portfolios....... 11.613
---------
Net realized gain (loss)................................... 21,968
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (677,449)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (655,481)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,007)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-43
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA AXA LARGE CAP
INTERNATIONAL AXA LARGE CAP GROWTH AXA LARGE CAP
VALUE MANAGED CORE MANAGED MANAGED VALUE MANAGED
VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY*
------------- ------------- ------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,363,308 $ 327,920 $ 1,344,033 $ 9,787,523
Expenses:
Asset-based charges...................................... 261,422 56,142 1,185,531 1,831,949
------------ ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,101,886 271,778 158,502 7,955,574
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,282,245 983,479 15,530,053 8,186,863
Net realized gain distribution from the Portfolios....... -- 2,511,011 23,239,699 18,387,738
------------ ----------- ------------ ------------
Net realized gain (loss)................................... 1,282,245 3,494,490 38,769,752 26,574,601
------------ ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (16,007,666) (5,705,806) (46,091,408) (74,400,199)
------------ ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (14,725,421) (2,211,316) (7,321,656) (47,825,598)
------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(13,623,535) $(1,939,538) $ (7,163,154) $(39,870,024)
============ =========== ============ ============
|
AXA MID CAP
VALUE MANAGED AXA MODERATE
VOLATILITY* ALLOCATION*
------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 2,456,713 $ 13,451,190
Expenses:
Asset-based charges...................................... 835,801 4,341,998
------------ ------------
NET INVESTMENT INCOME (LOSS)................................ 1,620,912 9,109,192
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 11,499,282 4,755,417
Net realized gain distribution from the Portfolios....... 15,882,536 33,867,487
------------ ------------
Net realized gain (loss)................................... 27,381,818 38,622,904
------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (56,235,308) (92,345,560)
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (28,853,490) (53,722,656)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(27,232,578) $(44,613,464)
============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-44
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
AXA/
AXA MODERATE AXA MODERATE- CLEARBRIDGE
GROWTH PLUS AXA/AB SMALL LARGE CAP AXA/JANUS
STRATEGY* ALLOCATION* CAP GROWTH* GROWTH* ENTERPRISE*
------------ ------------- ------------ ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,379,316 $ 6,863,026 $ 270,405 $ 145,975 $ --
Expenses:
Asset-based charges...................................... -- 723,027 1,016,191 222,759 116,749
------------ ------------ ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,379,316 6,139,999 (745,786) (76,784) (116,749)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 1,355,344 9,900,405 6,278,018 699,421 1,447,958
Net realized gain distribution from the Portfolios....... 2,651,571 20,941,335 33,830,854 7,174,055 2,536,155
------------ ------------ ------------ ----------- -----------
Net realized gain (loss)................................... 4,006,915 30,841,740 40,108,872 7,873,476 3,984,113
------------ ------------ ------------ ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (11,167,077) (65,552,287) (55,823,981) (7,907,125) (4,449,201)
------------ ------------ ------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (7,160,162) (34,710,547) (15,715,109) (33,649) (465,088)
------------ ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (5,780,846) $(28,570,548) $(16,460,895) $ (110,433) $ (581,837)
============ ============ ============ =========== ===========
|
AXA/LOOMIS
SAYLES
GROWTH*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 39,740
Expenses:
Asset-based charges...................................... 109,026
-----------
NET INVESTMENT INCOME (LOSS)................................ (69,286)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,177,833
Net realized gain distribution from the Portfolios....... 4,261,319
-----------
Net realized gain (loss)................................... 6,439,152
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (7,721,058)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,281,906)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,351,192)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-45
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
BLACKROCK
GLOBAL CHARTER/SM CHARTER/SM CHARTER/SM
ALLOCATION V.I. /MULTI-SECTOR /SMALL CAP /SMALL CAP
FUND BOND* GROWTH* VALUE*
--------------- ------------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 53,846 $ 1,553,951 $ 529,392 $ 350,744
Expenses:
Asset-based charges...................................... -- 304,802 21,736 71,746
--------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 53,846 1,249,149 507,656 278,998
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 40,350 (1,327,086) 1,143,444 1,842,779
Net realized gain distribution from the Portfolios....... 271,266 -- 1,120,510 427,470
--------- ----------- ----------- -----------
Net realized gain (loss)................................... 311,616 (1,327,086) 2,263,954 2,270,249
--------- ----------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (804,269) (634,315) (3,652,786) (6,029,386)
--------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (492,653) (1,961,401) (1,388,832) (3,759,137)
--------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(438,807) $ (712,252) $ (881,176) $(3,480,139)
========= =========== =========== ===========
|
CLEARBRIDGE EQ/AMERICAN
VARIABLE MID CENTURY MID
CAP PORTFOLIO CAP VALUE*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 1,261 $ 291,950
Expenses:
Asset-based charges...................................... -- 24,484
-------- -----------
NET INVESTMENT INCOME (LOSS)................................ 1,261 267,466
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (4,618) (60,301)
Net realized gain distribution from the Portfolios....... 12,037 --
-------- -----------
Net realized gain (loss)................................... 7,419 (60,301)
-------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (95,687) (5,859,557)
-------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (88,268) (5,919,858)
-------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(87,007) $(5,652,392)
======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-46
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/BLACKROCK EQ/CAPITAL
BASIC VALUE GUARDIAN EQ/COMMON EQ/CORE BOND
EQUITY* RESEARCH* STOCK INDEX* INDEX*
------------ ------------ ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,329,797 $ 723,444 $ 22,034,286 $ 935,134
Expenses:
Asset-based charges...................................... 682,149 613,888 8,956,364 127,079
------------ ------------ ------------- ---------
NET INVESTMENT INCOME (LOSS)................................ 2,647,648 109,556 13,077,922 808,055
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,319,257 5,605,571 78,552,593 (233,740)
Net realized gain distribution from the Portfolios....... 17,059,664 14,449,279 79,838,711 --
------------ ------------ ------------- ---------
Net realized gain (loss)................................... 26,378,921 20,054,850 158,391,304 (233,740)
------------ ------------ ------------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (45,322,323) (26,127,363) (267,534,071) (607,788)
------------ ------------ ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (18,943,402) (6,072,513) (109,142,767) (841,528)
------------ ------------ ------------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(16,295,754) $ (5,962,957) $ (96,064,845) $ (33,473)
============ ============ ============= =========
|
EQ/FIDELITY
INSTITUTIONAL
EQ/EQUITY 500 AM/SM/ LARGE
INDEX* CAP*(A)
------------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,879,978 $ 245,558
Expenses:
Asset-based charges...................................... 2,916,205 75,695
------------- ------------
NET INVESTMENT INCOME (LOSS)................................ 9,963,773 169,863
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 43,760,656 (179,846)
Net realized gain distribution from the Portfolios....... 19,680,609 --
------------- ------------
Net realized gain (loss)................................... 63,441,265 (179,846)
------------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (117,357,501) (12,029,625)
------------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (53,916,236) (12,209,471)
------------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (43,952,463) $(12,039,608)
============= ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-47
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/
EQ/FRANKLIN EQ/FRANKLIN EQ/GOLDMAN INTERMEDIATE
RISING STRATEGIC EQ/GLOBAL SACHS MID CAP GOVERNMENT
DIVIDENDS*(A) INCOME*(A) BOND PLUS* VALUE*(A) BOND*
------------- ----------- ---------- ------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 160,499 $ 237,239 $ 228,268 $ 19,719 $ 618,408
Expenses:
Asset-based charges...................................... 30,172 13,856 44,981 2,938 200,262
----------- --------- --------- --------- ---------
NET INVESTMENT INCOME (LOSS)................................ 130,327 223,383 183,287 16,781 418,146
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (17,469) (7,027) (250,669) (9,315) (586,240)
Net realized gain distribution from the Portfolios....... -- -- -- -- --
----------- --------- --------- --------- ---------
Net realized gain (loss)................................... (17,469) (7,027) (250,669) (9,315) (586,240)
----------- --------- --------- --------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,195,962) (654,159) (260,264) (849,455) 262,219
----------- --------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,213,431) (661,186) (510,933) (858,770) (324,021)
----------- --------- --------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,083,104) $(437,803) $(327,646) $(841,989) $ 94,125
=========== ========= ========= ========= =========
|
EQ/
INTERNATIONAL
EQUITY INDEX*
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 7,619,059
Expenses:
Asset-based charges...................................... 1,390,069
------------
NET INVESTMENT INCOME (LOSS)................................ 6,228,990
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (3,015,502)
Net realized gain distribution from the Portfolios....... --
------------
Net realized gain (loss)................................... (3,015,502)
------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (53,733,576)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (56,749,078)
------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(50,520,088)
============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-48
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/INVESCO EQ/INVESCO
EQ/INVESCO GLOBAL REAL INTERNATIONAL
COMSTOCK* ESTATE*(A) GROWTH*(A) EQ/IVY ENERGY*(A)
----------- ----------- ------------- -----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,142 $ 205,535 $ 69,985 $ 12,080
Expenses:
Asset-based charges...................................... 54,866 11,843 10,889 4,528
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 400,276 193,692 59,096 7,552
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 818,413 15,837 (34,887) (64,522)
Net realized gain distribution from the Portfolios....... 1,189,039 -- -- --
----------- --------- ----------- -----------
Net realized gain (loss)................................... 2,007,452 15,837 (34,887) (64,522)
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (6,065,466) (688,317) (1,744,827) (4,497,704)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,058,014) (672,480) (1,779,714) (4,562,226)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,657,738) $(478,788) $(1,720,618) $(4,554,674)
=========== ========= =========== ===========
|
EQ/IVY SCIENCE
EQ/IVY MID CAP AND
GROWTH*(A) TECHNOLOGY*(A)
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 3,296 $ --
Expenses:
Asset-based charges...................................... 15,652 12,806
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (12,356) (12,806)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (31,541) (173,400)
Net realized gain distribution from the Portfolios....... -- --
----------- -----------
Net realized gain (loss)................................... (31,541) (173,400)
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (3,192,880) (3,885,520)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (3,224,421) (4,058,920)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(3,236,777) $(4,071,726)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-49
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/LAZARD
EQ/JPMORGAN EMERGING EQ/MFS
VALUE EQ/LARGE CAP EQ/LARGE CAP MARKETS INTERNATIONAL
OPPORTUNITIES* GROWTH INDEX* VALUE INDEX* EQUITY*(A) GROWTH*
-------------- ------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 516,934 $ 1,055,019 $ 560,588 $ 93,930 $ 456,893
Expenses:
Asset-based charges...................................... 184,030 701,405 77,527 16,961 114,652
------------ ------------ ----------- --------- ------------
NET INVESTMENT INCOME (LOSS)................................ 332,904 353,614 483,061 76,969 342,241
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 2,145,573 7,355,094 1,136,607 (5,780) 1,435,573
Net realized gain distribution from the Portfolios....... 3,983,139 10,055,518 1,108,532 -- 4,720,516
------------ ------------ ----------- --------- ------------
Net realized gain (loss)................................... 6,128,712 17,410,612 2,245,139 (5,780) 6,156,089
------------ ------------ ----------- --------- ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (14,604,905) (21,527,934) (5,163,413) (713,799) (11,400,219)
------------ ------------ ----------- --------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (8,476,193) (4,117,322) (2,918,274) (719,579) (5,244,130)
------------ ------------ ----------- --------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (8,143,289) $ (3,763,708) $(2,435,213) $(642,610) $ (4,901,889)
============ ============ =========== ========= ============
|
EQ/MFS
INTERNATIONAL
VALUE*(A)
-------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... 43,338
-----------
NET INVESTMENT INCOME (LOSS)................................ (43,338)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (57,675)
Net realized gain distribution from the Portfolios....... --
-----------
Net realized gain (loss)................................... (57,675)
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (4,576,888)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (4,634,563)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(4,677,901)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-50
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/MFS UTILITIES EQ/MID CAP EQ/MONEY EQ/PIMCO REAL
SERIES*(A) INDEX* MARKET* RETURN*(A)
---------------- ------------ ---------- -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,447 $ 1,681,758 $1,860,580 $110,699
Expenses:
Asset-based charges...................................... -- 441,150 567,381 8,314
-------- ------------ ---------- --------
NET INVESTMENT INCOME (LOSS)................................ 12,447 1,240,608 1,293,199 102,385
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (5,831) 6,941,067 3,973 (5,300)
Net realized gain distribution from the Portfolios....... -- 11,540,383 -- 40,199
-------- ------------ ---------- --------
Net realized gain (loss)................................... (5,831) 18,481,450 3,973 34,899
-------- ------------ ---------- --------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (89,090) (37,940,546) 3,115 (78,883)
-------- ------------ ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (94,921) (19,459,096) 7,088 (43,984)
-------- ------------ ---------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(82,474) $(18,218,488) $1,300,287 $ 58,401
======== ============ ========== ========
|
EQ/PIMCO TOTAL EQ/PIMCO ULTRA
RETURN*(A) SHORT BOND*
-------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 455,989 $ 663,125
Expenses:
Asset-based charges...................................... 33,376 87,259
---------- ---------
NET INVESTMENT INCOME (LOSS)................................ 422,613 575,866
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 6,961 13,680
Net realized gain distribution from the Portfolios....... 231,763 --
---------- ---------
Net realized gain (loss)................................... 238,724 13,680
---------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. 410,518 (362,655)
---------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 649,242 (348,975)
---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $1,071,855 $ 226,891
========== =========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-51
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
EQ/T. ROWE EQ/T. ROWE
EQ/QUALITY EQ/SMALL PRICE GROWTH PRICE HEALTH EQ/UBS GROWTH
BOND PLUS* COMPANY INDEX* STOCK* SCIENCES*(A) & INCOME*
---------- -------------- ------------ ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 719,770 $ 1,012,806 $ -- $ -- $ 46,880
Expenses:
Asset-based charges...................................... 179,042 231,124 356,872 -- 47,789
--------- ------------ ------------ --------- -----------
NET INVESTMENT INCOME (LOSS)................................ 540,728 781,682 (356,872) -- (909)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (305,373) 2,535,372 8,673,333 (29,755) 832,101
Net realized gain distribution from the Portfolios....... -- 8,785,368 9,680,978 -- 1,477,029
--------- ------------ ------------ --------- -----------
Net realized gain (loss)................................... (305,373) 11,320,740 18,354,311 (29,755) 2,309,130
--------- ------------ ------------ --------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (415,538) (23,894,445) (20,766,318) (823,342) (4,100,675)
--------- ------------ ------------ --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (720,911) (12,573,705) (2,412,007) (853,097) (1,791,545)
--------- ------------ ------------ --------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(180,183) $(11,792,023) $ (2,768,879) $(853,097) $(1,792,454)
========= ============ ============ ========= ===========
|
FIDELITY(R)/ /VIP
ASSET MANAGER:
GROWTH
PORTFOLIO
---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,177
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ 15,177
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,091
Net realized gain distribution from the Portfolios....... 61,893
---------
Net realized gain (loss)................................... 126,984
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (225,936)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (98,952)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (83,775)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on October 22, 2018.
FSA-52
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP GOVERNMENT GROWTH &
EQUITY-INCOME MONEY MARKET INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- ---------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 36,513 $19,493 $ 19,243
Expenses:
Asset-based charges...................................... -- -- 18,081
--------- ------- -----------
NET INVESTMENT INCOME (LOSS)................................ 36,513 19,493 1,162
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 25,097 -- 235,127
Net realized gain distribution from the Portfolios....... 78,863 -- 584,857
--------- ------- -----------
Net realized gain (loss)................................... 103,960 -- 819,984
--------- ------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (283,361) -- (1,691,998)
--------- ------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (179,401) -- (872,014)
--------- ------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(142,888) $19,493 $ (870,852)
========= ======= ===========
|
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP INVESTMENT
HIGH INCOME GRADE BOND FIDELITY(R)/ /VIP MID
PORTFOLIO PORTFOLIO CAP PORTFOLIO
--------------- --------------- -------------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 159,061 $ 854,287 $ 134,741
Expenses:
Asset-based charges...................................... -- -- 54,810
--------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 159,061 854,287 79,931
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (41,662) (236,661) 432,310
Net realized gain distribution from the Portfolios....... -- 228,433 2,788,495
--------- ----------- -----------
Net realized gain (loss)................................... (41,662) (8,228) 3,220,805
--------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (210,317) (1,053,399) (8,193,396)
--------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (251,979) (1,061,627) (4,972,591)
--------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (92,918) $ (207,340) $(4,892,660)
========= =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-53
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP VALUE FRANKLIN FRANKLIN SMALL
VALUE STRATEGIES MUTUAL SHARES CAP VALUE VIP
PORTFOLIO PORTFOLIO VIP FUND FUND
--------------- --------------- ------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 12,276 $ 2,948 $ 221,315 $ 114,131
Expenses:
Asset-based charges...................................... -- -- 16,986 29,818
--------- -------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,276 2,948 204,329 84,313
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 9,681 11,469 53,533 (76,742)
Net realized gain distribution from the Portfolios....... 60,807 20,800 344,615 1,943,686
--------- -------- ----------- -----------
Net realized gain (loss)................................... 70,488 32,269 398,148 1,866,944
--------- -------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (287,144) (93,356) (1,447,043) (3,604,606)
--------- -------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (216,656) (61,087) (1,048,895) (1,737,662)
--------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(204,380) $(58,139) $ (844,566) $(1,653,349)
========= ======== =========== ===========
|
INVESCO V.I. INVESCO V.I. MID
DIVERSIFIED CAP CORE
DIVIDEND FUND EQUITY FUND
------------- ----------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 329,880 $ 4,983
Expenses:
Asset-based charges...................................... -- 9,076
----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 329,880 (4,093)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 77,751 (78,273)
Net realized gain distribution from the Portfolios....... 529,295 638,281
----------- -----------
Net realized gain (loss)................................... 607,046 560,008
----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (2,082,480) (1,054,884)
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,475,434) (494,876)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,145,554) $ (498,969)
=========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-54
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
INVESCO V.I.
SMALL CAP IVY VIP GLOBAL IVY VIP HIGH IVY VIP SMALL
EQUITY FUND EQUITY INCOME INCOME CAP GROWTH
------------ -------------- ------------ -------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ -- $ 15,245 $ 2,175,033 $ 52,406
Expenses:
Asset-based charges...................................... 9,777 -- 50,806 33,637
----------- --------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ (9,777) 15,245 2,124,227 18,769
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (75,353) (32,541) (123,106) 60,209
Net realized gain distribution from the Portfolios....... 412,203 71,641 -- 4,646,383
----------- --------- ----------- -----------
Net realized gain (loss)................................... 336,850 39,100 (123,106) 4,706,592
----------- --------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,213,467) (150,013) (2,884,856) (5,322,774)
----------- --------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (876,617) (110,913) (3,007,962) (616,182)
----------- --------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (886,394) $ (95,668) $ (883,735) $ (597,413)
=========== ========= =========== ===========
|
MFS(R)/
/MASSACHUSETTS
INVESTORS
MFS(R)/ /INVESTORS GROWTH STOCK
TRUST SERIES PORTFOLIO
---------------- --------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 15,740 $ 16,035
Expenses:
Asset-based charges...................................... 9,167 11,865
--------- ---------
NET INVESTMENT INCOME (LOSS)................................ 6,573 4,170
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 113,500 123,198
Net realized gain distribution from the Portfolios....... 158,522 283,372
--------- ---------
Net realized gain (loss)................................... 272,022 406,570
--------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (453,820) (499,761)
--------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (181,798) (93,191)
--------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(175,225) $ (89,021)
========= =========
|
The accompanying notes are an integral part of these financial statements.
FSA-55
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
MULTIMANAGER MULTIMANAGER
AGGRESSIVE MULTIMANAGER MID CAP MULTIMANAGER MULTIMANAGER
EQUITY* CORE BOND* GROWTH* MID CAP VALUE* TECHNOLOGY*
------------ ------------ ------------ -------------- ------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 625,360 $ 1,667,611 $ -- $ 298,366 $ 224,598
Expenses:
Asset-based charges...................................... 2,595,708 153,977 83,947 158,560 561,514
------------ ----------- ----------- ------------ ------------
NET INVESTMENT INCOME (LOSS)................................ (1,970,348) 1,513,634 (83,947) 139,806 (336,916)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 29,213,533 (703,201) 252,048 1,859,817 14,706,489
Net realized gain distribution from the Portfolios....... 47,304,632 -- 4,056,202 3,122,309 15,819,891
------------ ----------- ----------- ------------ ------------
Net realized gain (loss)................................... 76,518,165 (703,201) 4,308,250 4,982,126 30,526,380
------------ ----------- ----------- ------------ ------------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (75,548,437) (1,264,909) (5,865,470) (10,194,593) (27,829,523)
------------ ----------- ----------- ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... 969,728 (1,968,110) (1,557,220) (5,212,467) 2,696,857
------------ ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (1,000,620) $ (454,476) $(1,641,167) $ (5,072,661) $ 2,359,941
============ =========== =========== ============ ============
|
NATURAL
RESOURCES
PORTFOLIO
---------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ --
Expenses:
Asset-based charges...................................... --
---------
NET INVESTMENT INCOME (LOSS)................................ --
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (32,443)
Net realized gain distribution from the Portfolios....... --
---------
Net realized gain (loss)................................... (32,443)
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (553,290)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (585,733)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(585,733)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-56
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
PIMCO
COMMODITYREAL
RETURN(R)/ T. ROWE PRICE
/STRATEGY EQUITY INCOME TARGET 2015 TARGET 2025 TARGET 2035
PORTFOLIO PORTFOLIO ALLOCATION* ALLOCATION* ALLOCATION*
------------- ------------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 210,249 $ 249,839 $ 30,674 $ 159,556 $ 77,113
Expenses:
Asset-based charges...................................... 17,057 36,040 -- 18,915 7,241
----------- ----------- --------- ----------- ---------
NET INVESTMENT INCOME (LOSS)................................ 193,192 213,799 30,674 140,641 69,872
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. (927,692) 162,536 39,836 133,812 131,610
Net realized gain distribution from the Portfolios....... -- 1,295,193 129,786 218,179 59,052
----------- ----------- --------- ----------- ---------
Net realized gain (loss)................................... (927,692) 1,457,729 169,622 351,991 190,662
----------- ----------- --------- ----------- ---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (846,643) (3,057,011) (272,000) (1,093,575) (656,629)
----------- ----------- --------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,774,335) (1,599,282) (102,378) (741,584) (465,967)
----------- ----------- --------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(1,581,143) $(1,385,483) $ (71,704) $ (600,943) $(396,095)
=========== =========== ========= =========== =========
|
TARGET 2045
ALLOCATION*
-----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 45,032
Expenses:
Asset-based charges...................................... 1,282
---------
NET INVESTMENT INCOME (LOSS)................................ 43,750
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 65,222
Net realized gain distribution from the Portfolios....... 28,896
---------
Net realized gain (loss)................................... 94,118
---------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (386,721)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (292,603)
---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $(248,853)
=========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-57
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEAR OR PERIOD ENDED DECEMBER 31, 2018
TEMPLETON
DEVELOPING TEMPLETON TEMPLETON VANECK VIP
TARGET 2055 MARKETS VIP GLOBAL BOND GROWTH VIP GLOBAL HARD
ALLOCATION* FUND VIP FUND FUND ASSETS FUND
----------- ----------- ----------- ----------- -----------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 13,103 $ 138,307 $ -- $ 99,174 $ --
Expenses:
Asset-based charges...................................... 640 45,365 81,519 12,510 21,206
--------- ----------- ---------- ----------- -----------
NET INVESTMENT INCOME (LOSS)................................ 12,463 92,942 (81,519) 86,664 (21,206)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 42,868 479,829 (788,411) (57) (328,197)
Net realized gain distribution from the Portfolios....... -- -- -- 420,018 --
--------- ----------- ---------- ----------- -----------
Net realized gain (loss)................................... 42,868 479,829 (788,411) 419,961 (328,197)
--------- ----------- ---------- ----------- -----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (133,277) (3,670,319) 1,674,585 (1,279,590) (3,047,878)
--------- ----------- ---------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (90,409) (3,190,490) 886,174 (859,629) (3,376,075)
--------- ----------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (77,946) $(3,097,548) $ 804,655 $ (772,965) $(3,397,281)
========= =========== ========== =========== ===========
|
VANGUARD
VARIABLE
INSURANCE FUND
- EQUITY INDEX
PORTFOLIO
--------------
INCOME AND EXPENSES:
Investment Income:
Dividends from the Portfolios............................ $ 176,397
Expenses:
Asset-based charges...................................... 68,389
-----------
NET INVESTMENT INCOME (LOSS)................................ 108,008
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments.................. 666,497
Net realized gain distribution from the Portfolios....... 171,706
-----------
Net realized gain (loss)................................... 838,203
-----------
Net change in unrealized appreciation (depreciation) of
investments.............................................. (1,940,874)
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...... (1,102,671)
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................. $ (994,663)
===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-58
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT DOUBLELINE
1290 VT CONVERTIBLE 1290 VT DOUBLELINE OPPORTUNISTIC
SECURITIES* DYNAMIC ALLOCATION* BOND*(A)
-------------------- ------------------------ ------------------
2018 2017 2018 2017 2018 2017
---------- -------- ----------- ----------- -------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 27,231 $ 14,184 $ 183,233 $ 63,423 $ 17,328 $ 3,325
Net realized gain (loss)............... 30,192 15,721 361,667 612,239 (4,083) 141
Net change in unrealized appreciation
(depreciation) of investments........ (131,330) (19,816) (1,013,423) 314,599 (14,411) (2,459)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from operations............ (73,907) 10,089 (468,523) 990,261 (1,166) 1,007
---------- -------- ----------- ----------- -------- --------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 160,701 22,985 1,618,739 2,164,531 180,941 13,745
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 571,644 571,621 (1,614,365) 479,653 261,054 187,672
Redemptions for contract benefits and
terminations......................... (12,604) -- (292,789) (42,259) (13,392) --
Contract maintenance charges........... (46,131) (8,900) (796,144) (776,878) (20,634) (2,463)
---------- -------- ----------- ----------- -------- --------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 673,610 585,706 (1,084,559) 1,825,047 407,969 198,954
---------- -------- ----------- ----------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS... 599,703 595,795 (1,553,082) 2,815,308 406,803 199,961
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 604,521 8,726 12,307,449 9,492,141 199,961 --
---------- -------- ----------- ----------- -------- --------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,204,224 $604,521 $10,754,367 $12,307,449 $606,764 $199,961
========== ======== =========== =========== ======== ========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(a)Units were made available on May 19, 2017.
FSA-59
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT GAMCO MERGERS 1290 VT GAMCO SMALL
1290 VT EQUITY INCOME* & ACQUISITIONS* COMPANY VALUE*
------------------------ ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 393,347 $ 312,075 $ 197,596 $ (9,548) $ 687,093 $ 748,534
Net realized gain (loss)............... 5,748,576 1,603,780 371,161 892,978 16,860,849 20,994,949
Net change in unrealized appreciation
(depreciation) of investments........ (8,691,132) 1,166,705 (1,393,740) 3,765 (47,823,307) 5,308,912
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (2,549,209) 3,082,560 (824,983) 887,195 (30,275,365) 27,052,395
----------- ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,194,996 1,314,128 1,072,925 1,446,603 15,161,328 14,715,495
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (566,175) (409,866) (307,865) (163,664) (7,030,458) (5,116,218)
Redemptions for contract benefits and
terminations......................... (724,484) (647,739) (597,580) (370,720) (6,704,170) (5,818,950)
Contract maintenance charges........... (720,085) (728,372) (444,420) (462,204) (5,986,014) (5,980,113)
----------- ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (815,748) (471,849) (276,940) 450,015 (4,559,314) (2,199,786)
----------- ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,364,957) 2,610,711 (1,101,923) 1,337,210 (34,834,679) 24,852,609
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 22,651,270 20,040,559 16,191,996 14,854,786 197,726,749 172,874,140
----------- ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $19,286,313 $22,651,270 $15,090,073 $16,191,996 $162,892,070 $197,726,749
=========== =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-60
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
1290 VT SMARTBETA 1290 VT SOCIALLY ALL ASSET
EQUITY* RESPONSIBLE* GROWTH-ALT 20*(B)
-------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- -------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 15,176 $ 6,663 $ 20,640 $ 22,629 $ 547,895 $ 370,223
Net realized gain (loss)............... 67,305 22,537 146,758 601,202 1,302,927 834,875
Net change in unrealized appreciation
(depreciation) of investments........ (170,751) 44,110 (310,402) (28,706) (4,268,829) 2,422,878
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (88,270) 73,310 (143,004) 595,125 (2,418,007) 3,627,976
---------- -------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 264,152 76,181 171,215 204,225 3,787,678 4,217,718
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 569,089 296,031 (577,063) 235,718 1,765,694 3,884,575
Redemptions for contract benefits and
terminations......................... (16,795) (7,598) (75,358) (54,567) (656,921) (1,123,996)
Contract maintenance charges........... (53,674) (20,971) (96,397) (99,583) (1,541,110) (1,370,437)
---------- -------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 762,772 343,643 (577,603) 285,793 3,355,341 5,607,860
---------- -------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 674,502 416,953 (720,607) 880,918 937,334 9,235,836
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 598,100 181,147 3,521,671 2,640,753 28,928,635 19,692,799
---------- -------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,272,602 $598,100 $2,801,064 $3,521,671 $29,865,969 $28,928,635
========== ======== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(b)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a merger
on May 19, 2017.
FSA-61
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AMERICAN FUNDS
INSURANCE SERIES(R)/ AMERICAN FUNDS
/GLOBAL SMALL INSURANCE SERIES(R)/ /NEW AXA 400 MANAGED
CAPITALIZATION FUND/SM/ WORLD FUND(R)// VOLATILITY*
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (16,968) $ 11,123 $ 100,000 $ 72,376 $ 33,936 $ 24,791
Net realized gain (loss)............... 357,385 (177,465) 774,067 41,899 491,105 525,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,368,473) 1,384,139 (3,640,473) 2,374,832 (1,143,278) 136,239
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,028,056) 1,217,797 (2,766,406) 2,489,107 (618,237) 686,901
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,177,179 864,377 2,404,063 1,605,340 327,447 386,328
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,104,726 1,467,288 7,519,379 1,208,476 (348,264) 390,864
Redemptions for contract benefits and
terminations......................... (117,695) (113,887) (270,596) (76,397) (173,226) (97,331)
Contract maintenance charges........... (225,161) (186,450) (484,873) (374,039) (195,259) (199,662)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,939,049 2,031,328 9,167,973 2,363,380 (389,302) 480,199
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 910 -- -- --
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 910,993 3,249,125 6,402,477 4,852,487 (1,007,539) 1,167,100
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,356,444 4,107,319 12,710,631 7,858,144 5,412,820 4,245,720
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 8,267,437 $7,356,444 $19,113,108 $12,710,631 $ 4,405,281 $5,412,820
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-62
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA 500 MANAGED AXA 2000 MANAGED AXA AGGRESSIVE
VOLATILITY* VOLATILITY* ALLOCATION*
----------------------- ----------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ---------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 104,224 $ 78,318 $ 26,491 $ 20,351 $ 2,146,429 $ 1,959,042
Net realized gain (loss)............... 640,174 386,416 419,672 327,501 11,624,905 7,663,915
Net change in unrealized appreciation
(depreciation) of investments........ (1,453,693) 1,023,722 (1,047,416) 146,767 (26,889,043) 15,671,433
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (709,295) 1,488,456 (601,253) 494,619 (13,117,709) 25,294,390
----------- ---------- ----------- ---------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 704,550 1,030,494 299,478 396,055 9,232,836 9,347,431
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,261,153 983,229 337,946 544,488 (2,859,522) (2,743,640)
Redemptions for contract benefits and
terminations......................... (315,049) (256,066) (206,659) (90,180) (8,497,264) (6,733,933)
Contract maintenance charges........... (459,300) (390,590) (172,686) (154,578) (5,137,752) (5,688,391)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,191,354 1,367,067 258,079 695,785 (7,261,702) (5,818,533)
----------- ---------- ----------- ---------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 354 -- (8) -- 31,622 (31,623)
----------- ---------- ----------- ---------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 482,413 2,855,523 (343,182) 1,190,404 (20,347,789) 19,444,234
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 9,742,564 6,887,041 4,479,768 3,289,364 156,317,862 136,873,628
----------- ---------- ----------- ---------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,224,977 $9,742,564 $ 4,136,586 $4,479,768 $135,970,073 $156,317,862
=========== ========== =========== ========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-63
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE
AXA BALANCED STRATEGY* ALLOCATION* GROWTH STRATEGY*
------------------------ ------------------------ ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 493,984 $ 453,939 $ 337,170 $ 223,213 $ 90,726 $ 88,733
Net realized gain (loss)............... 1,344,948 611,887 534,267 639,878 250,690 166,986
Net change in unrealized appreciation
(depreciation) of investments........ (3,504,352) 1,889,026 (1,402,478) 510,514 (584,510) 270,462
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,665,420) 2,954,852 (531,041) 1,373,605 (243,094) 526,181
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 5,722,032 6,324,025 1,853,567 2,307,432 969,701 1,206,742
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,350,703 2,576,437 180,112 (2,239,253) (42,515) 476,425
Redemptions for contract benefits and
terminations......................... (669,939) (409,625) (952,724) (2,283,420) (409,905) (331,042)
Contract maintenance charges........... (2,956,446) (2,677,758) (1,978,918) (2,122,093) (631,149) (601,525)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 3,446,350 5,813,079 (897,963) (4,337,334) (113,868) 750,600
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,780,930 8,767,931 (1,429,004) (2,963,729) (356,962) 1,276,781
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 36,594,273 27,826,342 28,625,473 31,589,202 7,439,026 6,162,245
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $38,375,203 $36,594,273 $27,196,469 $28,625,473 $7,082,064 $7,439,026
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-64
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA CONSERVATIVE AXA CONSERVATIVE-PLUS AXA GLOBAL EQUITY
STRATEGY* ALLOCATION* MANAGED VOLATILITY*
---------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 37,655 $ 27,652 $ 398,375 $ 309,086 $ 952,645 $ 1,015,237
Net realized gain (loss)............... 81,735 60,286 1,347,084 1,183,492 15,144,159 4,468,932
Net change in unrealized appreciation
(depreciation) of investments........ (157,944) 25,697 (2,934,113) 1,119,606 (33,462,490) 26,555,167
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (38,554) 113,635 (1,188,654) 2,612,184 (17,365,686) 32,039,336
---------- ---------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 495,395 456,114 3,211,215 3,410,318 6,390,644 6,738,265
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 210,171 (355,590) (1,159,436) (207,373) (4,868,804) (6,578,272)
Redemptions for contract benefits and
terminations......................... (86,549) (100,328) (1,620,440) (2,659,574) (7,189,203) (8,091,897)
Contract maintenance charges........... (267,787) (263,328) (2,171,492) (2,465,048) (5,416,338) (5,858,570)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 351,230 (263,132) (1,740,153) (1,921,677) (11,083,701) (13,790,474)
---------- ---------- ----------- ----------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 74,999 -- --
---------- ---------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 312,676 (149,497) (2,928,807) 765,506 (28,449,387) 18,248,862
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 2,655,938 2,805,435 32,671,100 31,905,594 148,578,047 130,329,185
---------- ---------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,968,614 $2,655,938 $29,742,293 $32,671,100 $120,128,660 $148,578,047
========== ========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-65
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL CORE AXA INTERNATIONAL
AXA GROWTH STRATEGY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------ ------------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ------------ ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 758,543 $ 882,830 $ 866,406 $ 824,176 $ 70,474 $ 62,830
Net realized gain (loss)............... 2,460,555 971,201 699,419 786,097 21,968 36,065
Net change in unrealized appreciation
(depreciation) of investments........ (7,047,901) 5,354,237 (10,752,214) 12,137,220 (677,449) 503,911
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (3,828,803) 7,208,268 (9,186,389) 13,747,493 (585,007) 602,806
----------- ----------- ------------ ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 9,139,233 10,223,898 2,630,704 2,991,332 224,444 322,549
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (2,947,979) (625,154) (543,969) (6,727,082) 508,221 435,035
Redemptions for contract benefits and
terminations......................... (2,012,292) (1,160,377) (2,653,774) (2,644,300) (69,986) (83,371)
Contract maintenance charges........... (3,886,988) (3,772,921) (2,282,766) (2,463,324) (119,948) (105,347)
----------- ----------- ------------ ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 291,974 4,665,446 (2,849,805) (8,843,374) 542,731 568,866
----------- ----------- ------------ ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (3,536,829) 11,873,714 (12,036,194) 4,904,119 (42,276) 1,171,672
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 62,041,063 50,167,349 63,328,101 58,423,982 3,557,737 2,386,065
----------- ----------- ------------ ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $58,504,234 $62,041,063 $ 51,291,907 $63,328,101 $3,515,461 $3,557,737
=========== =========== ============ =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-66
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA INTERNATIONAL VALUE AXA LARGE CAP CORE AXA LARGE CAP GROWTH
MANAGED VOLATILITY* MANAGED VOLATILITY* MANAGED VOLATILITY*
------------------------- ------------------------ --------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,101,886 $ 1,270,298 $ 271,778 $ 240,962 $ 158,502 $ 166,666
Net realized gain (loss)............... 1,282,245 869,487 3,494,490 3,065,377 38,769,752 33,443,063
Net change in unrealized appreciation
(depreciation) of investments........ (16,007,666) 14,475,642 (5,705,806) 2,433,165 (46,091,408) 30,503,643
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (13,623,535) 16,615,427 (1,939,538) 5,739,504 (7,163,154) 64,113,372
------------ ----------- ----------- ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,180,386 4,590,922 978,432 1,068,994 10,055,390 11,169,949
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,272,580) (2,152,559) (208,000) (696,150) (11,713,353) (8,156,800)
Redemptions for contract benefits and
terminations......................... (3,601,571) (4,754,791) (1,083,924) (1,019,355) (12,890,265) (13,253,721)
Contract maintenance charges........... (3,769,617) (4,025,456) (1,144,548) (1,139,899) (10,140,614) (10,719,628)
------------ ----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,463,382) (6,341,884) (1,458,040) (1,786,410) (24,688,842) (20,960,200)
------------ ----------- ----------- ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (18,086,917) 10,273,543 (3,397,578) 3,953,094 (31,851,996) 43,153,172
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 85,043,394 74,769,851 31,158,744 27,205,650 275,604,577 232,451,405
------------ ----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 66,956,477 $85,043,394 $27,761,166 $31,158,744 $243,752,581 $275,604,577
============ =========== =========== =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-67
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA LARGE CAP VALUE AXA MID CAP VALUE AXA MODERATE
MANAGED VOLATILITY* MANAGED VOLATILITY* ALLOCATION*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,955,574 $ 4,232,495 $ 1,620,912 $ 1,330,515 $ 9,109,192 $ 6,420,178
Net realized gain (loss)............... 26,574,601 7,411,354 27,381,818 24,257,383 38,622,904 33,549,894
Net change in unrealized appreciation
(depreciation) of investments........ (74,400,199) 38,606,026 (56,235,308) (1,880,050) (92,345,560) 48,787,704
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (39,870,024) 50,249,875 (27,232,578) 23,707,848 (44,613,464) 88,757,776
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 17,820,235 18,993,249 8,499,182 8,907,612 48,453,618 51,984,557
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (12,015,972) (8,782,703) (7,977,746) (5,021,819) (7,590,887) (23,439,763)
Redemptions for contract benefits and
terminations......................... (18,775,561) (19,995,812) (9,944,141) (10,991,520) (33,236,093) (36,616,401)
Contract maintenance charges........... (18,979,468) (19,831,032) (8,457,814) (8,824,427) (57,722,064) (59,886,427)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (31,950,766) (29,616,298) (17,880,519) (15,930,154) (50,095,426) (67,958,034)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- -- 43,284
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (71,820,790) 20,633,577 (45,113,097) 7,777,694 (94,708,890) 20,843,026
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 415,729,366 395,095,789 216,266,018 208,488,324 897,135,849 876,292,823
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $343,908,576 $415,729,366 $171,152,921 $216,266,018 $802,426,959 $897,135,849
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-68
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA MODERATE GROWTH AXA MODERATE-PLUS AXA/AB SMALL CAP
STRATEGY* ALLOCATION* GROWTH*
-------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 1,379,316 $ 1,470,661 $ 6,139,999 $ 5,326,290 $ (745,786) $ (394,694)
Net realized gain (loss)............... 4,006,915 3,074,565 30,841,740 24,484,759 40,108,872 22,599,062
Net change in unrealized appreciation
(depreciation) of investments........ (11,167,077) 7,055,940 (65,552,287) 30,250,450 (55,823,981) 18,348,882
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (5,780,846) 11,601,166 (28,570,548) 60,061,499 (16,460,895) 40,553,250
------------ ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 15,292,605 16,955,106 28,814,143 30,922,625 7,770,341 7,554,131
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,508,652) (5,235,210) (23,487,019) (13,791,870) (3,547,190) (11,355,574)
Redemptions for contract benefits and
terminations......................... (2,887,590) (2,442,421) (23,056,449) (20,035,880) (8,433,628) (9,198,838)
Contract maintenance charges........... (7,989,391) (7,871,256) (19,014,366) (20,671,747) (6,816,779) (6,819,518)
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,906,972 1,406,219 (36,743,691) (23,576,872) (11,027,256) (19,819,799)
------------ ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,873,874) 13,007,385 (65,314,239) 36,484,627 (27,488,151) 20,733,451
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 109,617,357 96,609,972 457,491,988 421,007,361 213,951,192 193,217,741
------------ ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $106,743,483 $109,617,357 $392,177,749 $457,491,988 $186,463,041 $213,951,192
============ ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-69
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
AXA/CLEARBRIDGE LARGE AXA/LOOMIS SAYLES
CAP GROWTH* AXA/JANUS ENTERPRISE* GROWTH*
------------------------ ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (76,784) $ (142,588) $ (116,749) $ (103,805) $ (69,286) $ (28,722)
Net realized gain (loss)............... 7,873,476 9,128,760 3,984,113 4,984,733 6,439,152 1,373,698
Net change in unrealized appreciation
(depreciation) of investments........ (7,907,125) 7,953,886 (4,449,201) 5,224,000 (7,721,058) 8,459,226
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (110,433) 16,940,058 (581,837) 10,104,928 (1,351,192) 9,804,202
----------- ----------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 4,042,384 4,838,423 2,775,034 2,965,131 2,659,075 2,117,673
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (4,126,669) (8,298,014) (2,905,338) (1,612,821) 1,357,524 758,988
Redemptions for contract benefits and
terminations......................... (2,242,373) (2,792,529) (2,088,937) (1,517,523) (1,491,722) (854,075)
Contract maintenance charges........... (2,334,528) (2,396,070) (1,676,654) (1,712,287) (1,291,330) (1,067,048)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (4,661,186) (8,648,190) (3,895,895) (1,877,500) 1,233,547 955,538
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,771,619) 8,291,868 (4,477,732) 8,227,428 (117,645) 10,759,740
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 81,456,070 73,164,202 46,091,787 37,864,359 39,744,004 28,984,264
----------- ----------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $76,684,451 $81,456,070 $41,614,055 $46,091,787 $39,626,359 $39,744,004
=========== =========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-70
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
BLACKROCK GLOBAL CHARTER/SM/ MULTI- CHARTER/SM/ SMALL
ALLOCATION V.I. FUND SECTOR BOND* CAP GROWTH*
---------------------- ------------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ----------- ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 53,846 $ 54,567 $ 1,249,149 $ 856,131 $ 507,656 $ 298,879
Net realized gain (loss)............... 311,616 72,722 (1,327,086) (1,408,166) 2,263,954 781,569
Net change in unrealized appreciation
(depreciation) of investments........ (804,269) 397,048 (634,315) 1,923,410 (3,652,786) 1,438,055
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (438,807) 524,337 (712,252) 1,371,375 (881,176) 2,518,503
---------- ---------- ----------- ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 481,232 666,077 4,892,769 5,422,140 745,190 726,971
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,403,376 (983,013) (1,130,588) (7,559,971) 582,556 372,115
Redemptions for contract benefits and
terminations......................... (184,411) (299,739) (3,587,873) (3,686,081) (472,432) (773,700)
Contract maintenance charges........... (95,630) (84,536) (4,978,093) (5,304,390) (516,851) (495,505)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,604,567 (701,211) (4,803,785) (11,128,302) 338,463 (170,119)
---------- ---------- ----------- ------------ ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 2,264 -- --
---------- ---------- ----------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,165,760 (176,874) (5,516,037) (9,754,663) (542,713) 2,348,384
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,270,952 4,447,826 73,525,448 83,280,111 13,056,619 10,708,235
---------- ---------- ----------- ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $5,436,712 $4,270,952 $68,009,411 $ 73,525,448 $12,513,906 $13,056,619
========== ========== =========== ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-71
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/AMERICAN
CHARTER/SM/ SMALL CAP CLEARBRIDGE VARIABLE CENTURY MID CAP
VALUE* MID CAP PORTFOLIO VALUE*(C )(D)
------------------------ ------------------ ---------------
2018 2017 2018 2017 2018
----------- ----------- -------- -------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 278,998 $ 362,282 $ 1,261 $ 428 $ 267,466
Net realized gain (loss)............... 2,270,249 1,520,462 7,419 13,485 (60,301)
Net change in unrealized appreciation
(depreciation) of investments........ (6,029,386) 1,285,931 (95,687) (2,667) (5,859,557)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,480,139) 3,168,675 (87,007) 11,246 (5,652,392)
----------- ----------- -------- -------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,498,465 1,641,842 364,928 172,104 1,053,158
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,819,898) (1,085,607) 55,149 133,523 53,146,253
Redemptions for contract benefits and
terminations......................... (1,354,284) (1,373,728) -- -- (141,713)
Contract maintenance charges........... (1,381,571) (1,438,532) (30,114) (7,634) (293,100)
----------- ----------- -------- -------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,057,288) (2,256,025) 389,963 297,993 53,764,598
----------- ----------- -------- -------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 533 -- --
----------- ----------- -------- -------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,537,427) 912,650 303,489 309,239 48,112,206
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 31,000,265 30,087,615 314,328 5,089 --
----------- ----------- -------- -------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $24,462,838 $31,000,265 $617,817 $314,328 $48,112,206
=========== =========== ======== ======== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(d)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap Value
Fund due to a substitution on October 22, 2018.
FSA-72
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/BLACKROCK BASIC EQ/CAPITAL GUARDIAN
VALUE EQUITY* RESEARCH* EQ/COMMON STOCK INDEX*
-------------------------- -------------------------- ------------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ------------ ------------ -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 2,647,648 $ 2,192,247 $ 109,556 $ 358,262 $ 13,077,922 $ 12,641,999
Net realized gain (loss)............... 26,378,921 9,091,685 20,054,850 12,725,252 158,391,304 64,211,978
Net change in unrealized appreciation
(depreciation) of investments........ (45,322,323) 4,122,849 (26,127,363) 12,658,249 (267,534,071) 218,283,989
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from operations............ (16,295,754) 15,406,781 (5,962,957) 25,741,763 (96,064,845) 295,137,966
------------ ------------ ------------ ------------ -------------- --------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 12,943,153 13,455,602 4,221,681 4,622,061 68,264,259 70,697,299
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (10,529,958) (10,911,779) (3,197,203) (1,570,219) (69,133,046) (51,553,674)
Redemptions for contract benefits and
terminations......................... (7,545,269) (8,952,305) (4,034,801) (5,124,897) (67,662,814) (69,911,005)
Contract maintenance charges........... (7,884,412) (8,332,179) (4,214,631) (4,304,592) (74,802,593) (78,128,183)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (13,016,486) (14,740,661) (7,224,954) (6,377,647) (143,334,194) (128,895,563)
------------ ------------ ------------ ------------ -------------- --------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 125,100 22,027
------------ ------------ ------------ ------------ -------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS... (29,312,240) 666,120 (13,187,911) 19,364,116 (239,273,939) 166,264,430
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 212,634,157 211,968,037 125,446,171 106,082,055 1,724,896,214 1,558,631,784
------------ ------------ ------------ ------------ -------------- --------------
NET ASSETS -- END OF YEAR OR PERIOD..... $183,321,917 $212,634,157 $112,258,260 $125,446,171 $1,485,622,275 $1,724,896,214
============ ============ ============ ============ ============== ==============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-73
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FIDELITY
INSTITUTIONAL AM/SM/
EQ/CORE BOND INDEX* EQ/EQUITY 500 INDEX* LARGE CAP*(C)(E)
------------------------ --------------------------- -------------------
2018 2017 2018 2017 2018
----------- ----------- ------------- ------------ -------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 808,055 $ 652,831 $ 9,963,773 $ 9,069,228 $ 169,863
Net realized gain (loss)............... (233,740) (105,358) 63,441,265 49,687,094 (179,846)
Net change in unrealized appreciation
(depreciation) of investments........ (607,788) 185,629 (117,357,501) 94,757,414 (12,029,625)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (33,473) 733,102 (43,952,463) 153,513,736 (12,039,608)
----------- ----------- ------------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,663,771 4,503,364 43,792,516 48,204,371 1,186,694
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (426,574) 360,121 (16,216,520) (20,196,036) 105,252,102
Redemptions for contract benefits and
terminations......................... (3,053,763) (2,464,337) (27,225,302) (36,962,210) (321,496)
Contract maintenance charges........... (2,329,332) (4,247,393) (29,645,392) (29,844,695) (349,357)
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,145,898) (1,848,245) (29,294,698) (38,798,570) 105,767,943
----------- ----------- ------------- ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 11 491 --
----------- ----------- ------------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (2,179,371) (1,115,143) (73,247,150) 114,715,657 93,728,335
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 51,768,753 52,883,896 875,865,963 761,150,306 --
----------- ----------- ------------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $49,589,382 $51,768,753 $ 802,618,813 $875,865,963 $ 93,728,335
=========== =========== ============= ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(e)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
FSA-74
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/FRANKLIN RISING EQ/FRANKLIN
DIVIDENDS*(C)(F) STRATEGIC INCOME*(C)(G) EQ/GLOBAL BOND PLUS*
------------------ ----------------------- ------------------------
2018 2018 2018 2017
------------------ ----------------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................... $ 130,327 $ 223,383 $ 183,287 $ (38,198)
Net realized gain (loss)....................... (17,469) (7,027) (250,669) (373,414)
Net change in unrealized appreciation
(depreciation) of investments................ (4,195,962) (654,159) (260,264) 1,147,392
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations.................... (4,083,104) (437,803) (327,646) 735,780
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.......... 812,067 646,523 1,231,412 1,309,930
Transfers between Variable Investment Options
including guaranteed interest account, net... 56,189,605 33,520,994 355,189 182,494
Redemptions for contract benefits and
terminations................................. (399,664) (106,474) (877,497) (1,291,439)
Contract maintenance charges................... (411,020) (310,472) (828,842) (910,448)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners transactions... 56,190,988 33,750,571 (119,738) (709,463)
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP......... 1,361 185,604 -- --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS........... 52,109,245 33,498,372 (447,384) 26,317
NET ASSETS -- BEGINNING OF YEAR OR PERIOD....... -- -- 17,085,302 17,058,985
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............. $52,109,245 $33,498,372 $16,637,918 $17,085,302
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(f)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund due
to a substitution on October 22, 2018.
(g)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund due
to a substitution on October 22, 2018.
FSA-75
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/GOLDMAN SACHS MID EQ/INTERMEDIATE EQ/INTERNATIONAL
CAP VALUE*(C)(H) GOVERNMENT BOND* EQUITY INDEX*
-------------------- ------------------------- --------------------------
2018 2018 2017 2018 2017
-------------------- ------------ ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)................ $ 16,781 $ 418,146 $ 539,142 $ 6,228,990 $ 6,903,116
Net realized gain (loss).................... (9,315) (586,240) 278,982 (3,015,502) (5,487,166)
Net change in unrealized appreciation
(depreciation) of investments............. (849,455) 262,219 (714,718) (53,733,576) 62,115,735
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations................. (841,989) 94,125 103,406 (50,520,088) 63,531,685
---------- ------------ ----------- ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners....... 134,893 4,221,238 4,539,850 19,479,370 25,286,472
Transfers between Variable Investment
Options including guaranteed interest
account, net.............................. 9,284,016 (38,572,276) 3,310,355 (2,665,872) 6,872,058
Redemptions for contract benefits and
terminations.............................. (12,619) (2,537,688) (5,884,857) (12,255,673) (16,662,776)
Contract maintenance charges................ (68,241) (3,969,469) (4,309,219) (16,133,725) (17,153,586)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners transactions 9,338,049 (40,858,195) (2,343,871) (11,575,900) (1,657,832)
---------- ------------ ----------- ------------ ------------
Net increase (decrease) in amount retained
by AXA Equitable in Separate Account FP... -- -- 250 -- --
---------- ------------ ----------- ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS........ 8,496,060 (40,764,070) (2,240,215) (62,095,988) 61,873,853
NET ASSETS -- BEGINNING OF YEAR OR PERIOD.... -- 88,991,778 91,231,993 334,523,584 272,649,731
---------- ------------ ----------- ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD.......... $8,496,060 $ 48,227,708 $88,991,778 $272,427,596 $334,523,584
========== ============ =========== ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(h)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value Fund
due to a substitution on October 22, 2018.
FSA-76
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/INVESCO
EQ/INVESCO GLOBAL INTERNATIONAL
EQ/INVESCO COMSTOCK* REAL ESTATE*(C)(I) GROWTH*(C)(J)
------------------------ ------------------ -------------
2018 2017 2018 2018
----------- ----------- ------------------ -------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 400,276 $ 163,404 $ 193,692 $ 59,096
Net realized gain (loss)............... 2,007,452 698,834 15,837 (34,887)
Net change in unrealized appreciation
(depreciation) of investments........ (6,065,466) 3,616,119 (688,317) (1,744,827)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (3,657,738) 4,478,357 (478,788) (1,720,618)
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,437,416 1,730,186 884,036 962,453
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (142,921) 1,456,913 36,321,954 33,174,169
Redemptions for contract benefits and
terminations......................... (919,146) (779,354) (133,379) (123,391)
Contract maintenance charges........... (830,185) (849,883) (244,570) (177,322)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (454,836) 1,557,862 36,828,041 33,835,909
----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 16,845 --
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (4,112,574) 6,036,219 36,366,098 32,115,291
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 29,713,101 23,676,882 -- --
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $25,600,527 $29,713,101 $36,366,098 $32,115,291
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(i)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate Fund
due to a substitution on October 22, 2018.
(j)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
FSA-77
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/IVY MID CAP EQ/IVY SCIENCE AND
EQ/IVY ENERGY*(C)(K) GROWTH*(C)(L) TECHNOLOGY*(C)(M)
-------------------- -------------- ------------------
2018 2018 2018
-------------------- -------------- ------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 7,552 $ (12,356) $ (12,806)
Net realized gain (loss)............... (64,522) (31,541) (173,400)
Net change in unrealized appreciation
(depreciation) of investments........ (4,497,704) (3,192,880) (3,885,520)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (4,554,674) (3,236,777) (4,071,726)
----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 448,845 498,738 655,938
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 14,502,337 36,235,095 36,407,134
Redemptions for contract benefits and
terminations......................... (52,038) (76,589) (123,859)
Contract maintenance charges........... (118,118) (215,738) (216,456)
----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 14,781,026 36,441,506 36,722,757
----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 12,750 -- 1,726
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 10,239,102 33,204,729 32,652,757
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- -- --
----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $10,239,102 $33,204,729 $32,652,757
=========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(k)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(l)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a substitution
on October 22, 2018.
(m)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due to
a substitution on October 22, 2018.
FSA-78
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/JPMORGAN VALUE EQ/LARGE CAP GROWTH EQ/LARGE CAP VALUE
OPPORTUNITIES* INDEX* INDEX*
------------------------- -------------------------- ------------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 332,904 $ 209,523 $ 353,614 $ 503,425 $ 483,061 $ 433,024
Net realized gain (loss)............... 6,128,712 7,316,889 17,410,612 11,820,464 2,245,139 1,673,221
Net change in unrealized appreciation
(depreciation) of investments........ (14,604,905) (459,157) (21,527,934) 24,348,871 (5,163,413) 1,055,188
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (8,143,289) 7,067,255 (3,763,708) 36,672,760 (2,435,213) 3,161,433
------------ ----------- ------------ ------------ ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,458,081 2,518,595 6,983,652 6,754,755 1,969,105 2,030,222
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 1,960,234 6,143,448 (4,406,404) (1,668,287) (1,650,942) 134,283
Redemptions for contract benefits and
terminations......................... (2,318,012) (1,589,909) (5,802,642) (6,160,623) (1,359,157) (362,682)
Contract maintenance charges........... (1,759,848) (1,702,468) (5,329,214) (5,350,864) (813,035) (819,592)
------------ ----------- ------------ ------------ ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 1,340,455 5,369,666 (8,554,608) (6,425,019) (1,854,029) 982,231
------------ ----------- ------------ ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (6,802,834) 12,436,921 (12,318,316) 30,247,741 (4,289,242) 4,143,664
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 50,352,837 37,915,916 160,601,176 130,353,435 28,988,210 24,844,546
------------ ----------- ------------ ------------ ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 43,550,003 $50,352,837 $148,282,860 $160,601,176 $24,698,968 $28,988,210
============ =========== ============ ============ =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-79
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/LAZARD EMERGING EQ/MFS INTERNATIONAL EQ/MFS INTERNATIONAL
MARKETS EQUITY*(C)(N) GROWTH* VALUE*(C)(O)
--------------------- ------------------------- --------------------
2018 2018 2017 2018
--------------------- ------------ ----------- --------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 76,969 $ 342,241 $ 273,243 $ (43,338)
Net realized gain (loss)............... (5,780) 6,156,089 3,002,534 (57,675)
Net change in unrealized appreciation
(depreciation) of investments........ (713,799) (11,400,219) 8,871,531 (4,576,888)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations............ (642,610) (4,901,889) 12,147,308 (4,677,901)
----------- ------------ ----------- ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,548,670 2,777,786 2,747,437 2,359,133
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 52,324,409 536,107 894,865 106,053,233
Redemptions for contract benefits and
terminations......................... (249,493) (1,531,690) (1,871,149) (268,686)
Contract maintenance charges........... (366,650) (1,375,760) (1,372,826) (622,499)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 53,256,936 406,443 398,327 107,521,181
----------- ------------ ----------- ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- 414
----------- ------------ ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS... 52,614,326 (4,495,446) 12,545,635 102,843,694
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 51,192,265 38,646,630 --
----------- ------------ ----------- ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $52,614,326 $ 46,696,819 $51,192,265 $102,843,694
=========== ============ =========== ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(n)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(o)EQ/MFS International Value replaced MFS(R) International Value Portfolio due
to a substitution on October 22, 2018.
FSA-80
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/MFS UTILITIES
SERIES*(C)(P) EQ/MID CAP INDEX* EQ/MONEY MARKET*
---------------- -------------------------- --------------------------
2018 2018 2017 2018 2017
---------------- ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,447 $ 1,240,608 $ 942,438 $ 1,293,199 $ 1,894
Net realized gain (loss)............... (5,831) 18,481,450 20,804,385 3,973 4,114
Net change in unrealized appreciation
(depreciation) of investments........ (89,090) (37,940,546) (921,700) 3,115 632
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (82,474) (18,218,488) 20,825,123 1,300,287 6,640
---------- ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 38,278 9,151,686 13,989,156 83,705,875 74,309,383
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,346,830 (2,332,744) 12,310,822 1,575,257 19,368,117
Redemptions for contract benefits and
terminations......................... (1,642) (6,597,824) (11,824,318) (80,746,543) (81,637,216)
Contract maintenance charges........... (9,088) (4,908,979) (5,138,809) (15,954,459) (16,395,546)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,374,378 (4,687,861) 9,336,851 (11,419,870) (4,355,262)
---------- ------------ ------------ ------------ ------------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- (21) 14,970
---------- ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... 2,291,904 (22,906,349) 30,161,974 (10,119,604) (4,333,652)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 157,132,248 126,970,274 154,480,348 158,814,000
---------- ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $2,291,904 $134,225,899 $157,132,248 $144,360,744 $154,480,348
========== ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(p)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
FSA-81
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/PIMCO EQ/PIMCO
REAL TOTAL EQ/PIMCO ULTRA SHORT
RETURN*(C)(Q) RETURN*(C)(R) BOND*
------------- ------------- ------------------------
2018 2018 2018 2017
------------- ------------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)..................... $ 102,385 $ 422,613 $ 575,866 $ 338,391
Net realized gain (loss)......................... 34,899 238,724 13,680 (4,530)
Net change in unrealized appreciation
(depreciation) of investments.................. (78,883) 410,518 (362,655) 180,974
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from operations................................ 58,401 1,071,855 226,891 514,835
----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners............ 606,640 1,101,234 2,203,800 2,522,340
Transfers between Variable Investment Options
including guaranteed interest account, net..... 23,933,897 66,846,907 993,308 2,824,882
Redemptions for contract benefits and
terminations................................... (177,212) (268,391) (1,501,122) (1,697,778)
Contract maintenance charges..................... (237,130) (523,468) (1,808,236) (1,899,702)
----------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from contractowners transactions............... 24,126,195 67,156,282 (112,250) 1,749,742
----------- ----------- ----------- -----------
Net increase (decrease) in amount retained by
AXA Equitable in Separate Account FP........... -- -- -- 313
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS............. 24,184,596 68,228,137 114,641 2,264,890
NET ASSETS -- BEGINNING OF YEAR OR PERIOD......... -- -- 33,270,859 31,005,969
----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD............... $24,184,596 $68,228,137 $33,385,500 $33,270,859
=========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(q)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(r)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
FSA-82
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
EQ/SMALL COMPANY EQ/T. ROWE PRICE GROWTH
EQ/QUALITY BOND PLUS* INDEX* STOCK*
------------------------- -------------------------- --------------------------
2018 2017 2018 2017 2018 2017
----------- ------------ ------------ ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 540,728 $ 355,221 $ 781,682 $ 799,920 $ (356,872) $ (287,380)
Net realized gain (loss)............... (305,373) (558,474) 11,320,740 9,632,868 18,354,311 14,524,649
Net change in unrealized appreciation
(depreciation) of investments........ (415,538) 701,106 (23,894,445) 1,718,087 (20,766,318) 12,054,306
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations............ (180,183) 497,853 (11,792,023) 12,150,875 (2,768,879) 26,291,575
----------- ------------ ------------ ------------ ------------ ------------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 3,403,693 3,652,491 6,612,780 5,839,635 11,671,252 10,565,164
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,262,682) (8,845,640) (1,077,493) 2,911,718 747,416 3,728,883
Redemptions for contract benefits and
terminations......................... (2,423,040) (3,303,132) (3,062,507) (2,656,416) (3,447,977) (3,623,193)
Contract maintenance charges........... (3,186,540) (3,499,449) (2,794,233) (2,710,413) (3,747,718) (3,312,427)
----------- ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (3,468,569) (11,995,730) (321,453) 3,384,524 5,222,973 7,358,427
----------- ------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS... (3,648,752) (11,497,877) (12,113,476) 15,535,399 2,454,094 33,650,002
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 45,400,051 56,897,928 101,479,813 85,944,414 112,079,477 78,429,475
----------- ------------ ------------ ------------ ------------ ------------
NET ASSETS -- END OF YEAR OR PERIOD..... $41,751,299 $ 45,400,051 $ 89,366,337 $101,479,813 $114,533,571 $112,079,477
=========== ============ ============ ============ ============ ============
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-83
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP ASSET
EQ/T. ROWE PRICE HEALTH EQ/UBS GROWTH & MANAGER: GROWTH
SCIENCES*(C)(S) INCOME* PORTFOLIO
----------------------- ------------------------ ----------------------
2018 2018 2017 2018 2017
----------------------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ -- $ (909) $ (7,260) $ 15,177 $ 15,860
Net realized gain (loss)............... (29,755) 2,309,130 1,268,760 126,984 210,934
Net change in unrealized appreciation
(depreciation) of investments........ (823,342) (4,100,675) 1,320,196 (225,936) 26,312
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (853,097) (1,792,454) 2,581,696 (83,775) 253,106
---------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 318,959 642,673 773,313 127,084 85,550
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 8,400,775 (2,719,307) 2,833,189 (27,165) (77,648)
Redemptions for contract benefits and
terminations......................... (411) (442,469) (1,031,297) (417,412) (17,598)
Contract maintenance charges........... (22,107) (436,187) (444,918) (44,623) (36,019)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 8,697,216 (2,955,290) 2,130,287 (362,116) (45,715)
---------- ----------- ----------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 9,007 -- -- -- --
---------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 7,853,126 (4,747,744) 4,711,983 (445,891) 207,391
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. -- 16,096,068 11,384,085 1,591,314 1,383,923
---------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $7,853,126 $11,348,324 $16,096,068 $1,145,423 $1,591,314
========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
(c)Units were made available on October 22, 2018.
(s)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
FSA-84
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP
FIDELITY(R)/ /VIP EQUITY- GOVERNMENT MONEY FIDELITY(R)/ /VIP GROWTH &
INCOME PORTFOLIO MARKET PORTFOLIO INCOME PORTFOLIO
------------------------ ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 36,513 $ 26,477 $ 19,493 $ 6,057 $ 1,162 $ 81,796
Net realized gain (loss)............... 103,960 33,787 -- -- 819,984 459,015
Net change in unrealized appreciation
(depreciation) of investments........ (283,361) 149,822 -- -- (1,691,998) 950,418
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (142,888) 210,086 19,493 6,057 (870,852) 1,491,229
---------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 364,082 326,990 172,255 192,674 962,740 1,222,128
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (280,400) (183,123) 269,993 (380,897) (549,721) (333,493)
Redemptions for contract benefits and
terminations......................... (87,410) (80,517) (37,768) (149) (504,023) (392,065)
Contract maintenance charges........... (47,022) (53,931) (45,968) (60,587) (414,538) (423,940)
---------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (50,750) 9,419 358,512 (248,959) (505,542) 72,630
---------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (193,638) 219,505 378,005 (242,902) (1,376,394) 1,563,859
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 1,804,413 1,584,908 1,089,358 1,332,260 10,173,654 8,609,795
---------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,610,775 $1,804,413 $1,467,363 $1,089,358 $ 8,797,260 $10,173,654
========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-85
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP HIGH FIDELITY(R)/ /VIP INVESTMENT FIDELITY(R)/ /VIP MID CAP
INCOME PORTFOLIO GRADE BOND PORTFOLIO PORTFOLIO
----------------------- --------------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 159,061 $ 193,518 $ 854,287 $ 370,838 $ 79,931 $ 90,039
Net realized gain (loss)............... (41,662) (41,290) (8,228) 213,753 3,220,805 1,330,964
Net change in unrealized appreciation
(depreciation) of investments........ (210,317) 96,590 (1,053,399) 209,639 (8,193,396) 3,659,520
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (92,918) 248,818 (207,340) 794,230 (4,892,660) 5,080,523
----------- ---------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 316,106 390,955 3,036,390 8,448,106 5,164,695 4,221,684
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,337,468) (7,655) 19,785,678 5,079,323 (1,586,532) 105,288
Redemptions for contract benefits and
terminations......................... (251,778) (127,467) (1,593,205) (6,260,023) (938,814) (917,962)
Contract maintenance charges........... (67,257) (59,927) (571,148) (900,438) (962,168) (867,228)
----------- ---------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (1,340,397) 195,906 20,657,715 6,366,968 1,677,181 2,541,782
----------- ---------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,433,315) 444,724 20,450,375 7,161,198 (3,215,479) 7,622,305
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 4,070,804 3,626,080 16,363,098 9,201,900 31,644,995 24,022,690
----------- ---------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 2,637,489 $4,070,804 $36,813,473 $16,363,098 $28,429,516 $31,644,995
=========== ========== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-86
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FIDELITY(R)/ /VIP VALUE FIDELITY(R)/ /VIP VALUE FRANKLIN MUTUAL
PORTFOLIO STRATEGIES PORTFOLIO SHARES VIP FUND
--------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
---------- --------- --------- -------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,276 $ 8,342 $ 2,948 $ 5,354 $ 204,329 $ 225,656
Net realized gain (loss)............... 70,488 44,941 32,269 85,781 398,148 634,235
Net change in unrealized appreciation
(depreciation) of investments........ (287,144) 59,005 (93,356) (21,373) (1,447,043) (6,575)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (204,380) 112,288 (58,139) 69,762 (844,566) 853,316
---------- --------- --------- -------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 219,536 105,910 131,489 36,231 702,605 637,676
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 516,778 (119,852) 10,249 102,267 (2,008,212) (643,853)
Redemptions for contract benefits and
terminations......................... (12,735) -- (315,371) (8,175) (327,816) (205,841)
Contract maintenance charges........... (25,979) (20,317) (9,672) (5,410) (251,824) (255,182)
---------- --------- --------- -------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 697,600 (34,259) (183,305) 124,913 (1,885,247) (467,200)
---------- --------- --------- -------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 493,220 78,029 (241,444) 194,675 (2,729,813) 386,116
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 826,046 748,017 529,098 334,423 10,881,114 10,494,998
---------- --------- --------- -------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $1,319,266 $ 826,046 $ 287,654 $529,098 $ 8,151,301 $10,881,114
========== ========= ========= ======== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-87
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
FRANKLIN SMALL CAP INVESCO V.I. DIVERSIFIED INVESCO V.I. MID CAP
VALUE VIP FUND DIVIDEND FUND CORE EQUITY FUND
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 84,313 $ 30,630 $ 329,880 $ 209,275 $ (4,093) $ 2,165
Net realized gain (loss)............... 1,866,944 675,237 607,046 893,099 560,008 36,137
Net change in unrealized appreciation
(depreciation) of investments........ (3,604,606) 424,449 (2,082,480) 15,062 (1,054,884) 430,480
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,653,349) 1,130,316 (1,145,554) 1,117,436 (498,969) 468,782
----------- ----------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,225,400 1,308,322 1,739,605 1,821,907 276,037 216,944
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 12,504 (768,691) (748,388) (1,199,630) 131,366 (82,942)
Redemptions for contract benefits and
terminations......................... (398,068) (207,995) (422,613) (127,609) (121,676) (87,848)
Contract maintenance charges........... (340,702) (319,086) (364,873) (358,741) (97,720) (92,575)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 499,134 12,550 203,731 135,927 188,007 (46,421)
----------- ----------- ----------- ----------- ----------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- (6) --
----------- ----------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,154,215) 1,142,866 (941,823) 1,253,363 (310,968) 422,361
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,259,398 11,116,532 14,464,649 13,211,286 3,804,123 3,381,762
----------- ----------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $11,105,183 $12,259,398 $13,522,826 $14,464,649 $ 3,493,155 $3,804,123
=========== =========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-88
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
INVESCO V.I. SMALL CAP IVY VIP GLOBAL
EQUITY FUND EQUITY INCOME IVY VIP HIGH INCOME
----------------------- ---------------------- ------------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (9,777) $ (10,054) $ 15,245 $ 10,139 $ 2,124,227 $ 1,639,044
Net realized gain (loss)............... 336,850 170,891 39,100 36,952 (123,106) (243,257)
Net change in unrealized appreciation
(depreciation) of investments........ (1,213,467) 482,329 (150,013) 85,655 (2,884,856) 520,815
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (886,394) 643,166 (95,668) 132,746 (883,735) 1,916,602
----------- ---------- ---------- ---------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 421,892 395,973 78,374 91,888 4,278,615 3,681,097
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (82,185) 522,870 (453,431) 83,185 1,411,468 659,329
Redemptions for contract benefits and
terminations......................... (88,415) (77,531) (1,186) (4,879) (734,121) (897,197)
Contract maintenance charges........... (190,227) (180,525) (27,713) (26,377) (1,431,584) (1,264,121)
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 61,065 660,787 (403,956) 143,817 3,524,378 2,179,108
----------- ---------- ---------- ---------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- -- -- 112 --
----------- ---------- ---------- ---------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (825,329) 1,303,953 (499,624) 276,563 2,640,755 4,095,710
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,917,440 4,613,487 1,025,378 748,815 32,857,092 28,761,382
----------- ---------- ---------- ---------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 5,092,111 $5,917,440 $ 525,754 $1,025,378 $35,497,847 $32,857,092
=========== ========== ========== ========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
FSA-89
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MFS(R)/ /MASSACHUSETTS
IVY VIP SMALL CAP MFS(R)/ /INVESTORS TRUST INVESTORS GROWTH
GROWTH SERIES STOCK PORTFOLIO
------------------------ ---------------------- ----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 18,769 $ (23,455) $ 6,573 $ 9,717 $ 4,170 $ 6,356
Net realized gain (loss)............... 4,706,592 107,204 272,022 161,574 406,570 216,672
Net change in unrealized appreciation
(depreciation) of investments........ (5,322,774) 2,025,126 (453,820) 484,584 (499,761) 790,808
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (597,413) 2,108,875 (175,225) 655,875 (89,021) 1,013,836
----------- ----------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,017,729 1,014,519 255,761 279,046 479,619 580,824
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 264,063 1,364,503 (759,168) 595,850 1,141,121 (319,403)
Redemptions for contract benefits and
terminations......................... (329,710) (433,924) (70,698) (9,822) (124,888) (133,375)
Contract maintenance charges........... (405,362) (339,263) (114,851) (111,975) (160,212) (166,280)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 546,720 1,605,835 (688,956) 753,099 1,335,640 (38,234)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 6 -- -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (50,687) 3,714,710 (864,181) 1,408,974 1,246,619 975,602
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 12,406,124 8,691,414 4,026,553 2,617,579 4,740,754 3,765,152
----------- ----------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $12,355,437 $12,406,124 $3,162,372 $4,026,553 $5,987,373 $4,740,754
=========== =========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-90
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MULTIMANAGER CORE MULTIMANAGER
AGGRESSIVE EQUITY* BOND* MID CAP GROWTH*
-------------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
------------ ------------ ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ (1,970,348) $ (1,595,863) $ 1,513,634 $ 1,196,584 $ (83,947) $ (75,591)
Net realized gain (loss)............... 76,518,165 19,467,828 (703,201) (1,016,350) 4,308,250 1,892,769
Net change in unrealized appreciation
(depreciation) of investments........ (75,548,437) 90,566,246 (1,264,909) 1,627,190 (5,865,470) 4,700,332
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (1,000,620) 108,438,211 (454,476) 1,807,424 (1,641,167) 6,517,510
------------ ------------ ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 19,642,304 20,579,052 3,575,406 3,921,284 1,315,240 1,409,088
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (5,816,235) (7,898,955) (1,634,791) (5,037,961) (63,920) (5,305,433)
Redemptions for contract benefits and
terminations......................... (19,970,181) (19,931,528) (2,979,637) (2,335,291) (1,511,855) (1,536,075)
Contract maintenance charges........... (21,076,907) (21,448,107) (3,223,200) (3,426,225) (1,122,920) (1,107,159)
------------ ------------ ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (27,221,019) (28,699,538) (4,262,222) (6,878,193) (1,383,455) (6,539,579)
------------ ------------ ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... (28,221,639) 79,738,673 (4,716,698) (5,070,769) (3,024,622) (22,069)
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 457,137,617 377,398,944 64,643,113 69,713,882 29,766,783 29,788,852
------------ ------------ ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $428,915,978 $457,137,617 $59,926,415 $64,643,113 $26,742,161 $29,766,783
============ ============ =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-91
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
MULTIMANAGER MID CAP MULTIMANAGER NATURAL RESOURCES
VALUE* TECHNOLOGY* PORTFOLIO
------------------------- -------------------------- -----------------------
2018 2017 2018 2017 2018 2017
------------ ----------- ------------ ------------ ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 139,806 $ 147,060 $ (336,916) $ (430,334) $ -- $ --
Net realized gain (loss)............... 4,982,126 5,540,659 30,526,380 16,358,155 (32,443) 314,388
Net change in unrealized appreciation
(depreciation) of investments........ (10,194,593) (2,234,798) (27,829,523) 19,494,100 (553,290) (382,799)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (5,072,661) 3,452,921 2,359,941 35,421,921 (585,733) (68,411)
------------ ----------- ------------ ------------ ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,543,167 1,634,900 6,584,437 6,136,240 199,394 248,271
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (1,206,402) (7,561,096) 3,511,970 3,719,728 (1,918,382) 208,084
Redemptions for contract benefits and
terminations......................... (1,590,082) (2,125,087) (4,699,617) (4,483,939) (20,941) (2,552)
Contract maintenance charges........... (1,548,757) (1,631,364) (4,343,518) (4,042,608) (35,350) (32,011)
------------ ----------- ------------ ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (2,802,074) (9,682,647) 1,053,272 1,329,421 (1,775,279) 421,792
------------ ----------- ------------ ------------ ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (7,874,735) (6,229,726) 3,413,213 36,751,342 (2,361,012) 353,381
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 41,221,509 47,451,235 127,676,999 90,925,657 4,277,096 3,923,715
------------ ----------- ------------ ------------ ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 33,346,774 $41,221,509 $131,090,212 $127,676,999 $ 1,916,084 $4,277,096
============ =========== ============ ============ =========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-92
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
PIMCO
COMMODITYREALRETURN(R)/ T. ROWE PRICE EQUITY
/STRATEGY PORTFOLIO INCOME PORTFOLIO TARGET 2015 ALLOCATION*
------------------------ ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ----------- ----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 193,192 $ 1,042,484 $ 213,799 $ 167,523 $ 30,674 $ 24,923
Net realized gain (loss)............... (927,692) (1,020,101) 1,457,729 1,630,941 169,622 73,712
Net change in unrealized appreciation
(depreciation) of investments........ (846,643) 202,280 (3,057,011) 134,619 (272,000) 74,452
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (1,581,143) 224,663 (1,385,483) 1,933,083 (71,704) 173,087
----------- ----------- ----------- ----------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 1,031,513 1,198,968 974,604 961,625 55,080 59,562
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 293,523 259,203 448,100 (22,439) (149,697) 1,382,599
Redemptions for contract benefits and
terminations......................... (383,117) (217,289) (441,558) (1,003,917) -- --
Contract maintenance charges........... (435,001) (441,892) (539,665) (518,978) (16,253) (11,125)
----------- ----------- ----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 506,918 798,990 441,481 (583,709) (110,870) 1,431,036
----------- ----------- ----------- ----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (1,074,225) 1,023,653 (944,002) 1,349,374 (182,574) 1,604,123
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 10,612,827 9,589,174 13,994,976 12,645,602 1,892,475 288,352
----------- ----------- ----------- ----------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,538,602 $10,612,827 $13,050,974 $13,994,976 $1,709,901 $1,892,475
=========== =========== =========== =========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-93
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TARGET 2025 ALLOCATION* TARGET 2035 ALLOCATION* TARGET 2045 ALLOCATION*
----------------------- ----------------------- -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ---------- ---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 140,641 $ 95,880 $ 69,872 $ 40,567 $ 43,750 $ 23,213
Net realized gain (loss)............... 351,991 75,888 190,662 31,591 94,118 34,871
Net change in unrealized appreciation
(depreciation) of investments........ (1,093,575) 602,049 (656,629) 308,373 (386,721) 176,698
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations............ (600,943) 773,817 (396,095) 380,531 (248,853) 234,782
----------- ---------- ---------- ---------- ---------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 516,784 433,499 626,863 272,395 458,201 336,458
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 2,292,438 4,539,714 1,373,433 1,451,315 973,093 544,878
Redemptions for contract benefits and
terminations......................... (89,525) (94,790) (51,928) (59,515) (17,703) (14,748)
Contract maintenance charges........... (138,422) (98,478) (115,782) (75,081) (111,876) (78,386)
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 2,581,275 4,779,945 1,832,586 1,589,114 1,301,715 788,202
----------- ---------- ---------- ---------- ---------- ----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. 89 -- 9 -- -- --
----------- ---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 1,980,421 5,553,762 1,436,500 1,969,645 1,052,862 1,022,984
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 7,645,472 2,091,710 3,313,155 1,343,510 1,777,373 754,389
----------- ---------- ---------- ---------- ---------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 9,625,893 $7,645,472 $4,749,655 $3,313,155 $2,830,235 $1,777,373
=========== ========== ========== ========== ========== ==========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-94
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
TEMPLETON DEVELOPING TEMPLETON GLOBAL BOND
TARGET 2055 ALLOCATION* MARKETS VIP FUND VIP FUND
----------------------- ------------------------ ------------------------
2018 2017 2018 2017 2018 2017
--------- -------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 12,463 $ 7,608 $ 92,942 $ 101,719 $ (81,519) $ (82,617)
Net realized gain (loss)............... 42,868 12,353 479,829 4,178 (788,411) (566,721)
Net change in unrealized appreciation
(depreciation) of investments........ (133,277) 70,907 (3,670,319) 4,129,479 1,674,585 1,332,521
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations............ (77,946) 90,868 (3,097,548) 4,235,376 804,655 683,183
--------- -------- ----------- ----------- ----------- -----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 244,304 130,055 1,436,269 1,346,057 4,597,758 4,753,578
Transfers between Variable Investment
Options including guaranteed
interest account, net................ 207,973 224,166 2,390,379 3,240,016 (1,271,718) 2,173,998
Redemptions for contract benefits and
terminations......................... (7,003) (85,020) (409,893) (358,079) (1,347,516) (1,421,384)
Contract maintenance charges........... (36,521) (17,991) (623,534) (582,691) (2,013,413) (2,031,425)
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... 408,753 251,210 2,793,221 3,645,303 (34,889) 3,474,767
--------- -------- ----------- ----------- ----------- -----------
Net increase (decrease) in amount
retained by AXA Equitable in
Separate Account FP.................. -- -- 56 63 -- --
--------- -------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS... 330,807 342,078 (304,271) 7,880,742 769,766 4,157,950
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 606,368 264,290 17,444,222 9,563,480 45,630,839 41,472,889
--------- -------- ----------- ----------- ----------- -----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 937,175 $606,368 $17,139,951 $17,444,222 $46,400,605 $45,630,839
========= ======== =========== =========== =========== ===========
|
The accompanying notes are an integral part of these financial statements.
* Denotes Variable Investment Options that invest in shares of a Portfolio of
EQ Advisors Trust or AXA Premier VIP Trust, affiliates of AXA Equitable.
FSA-95
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
VANGUARD VARIABLE
TEMPLETON GROWTH VANECK VIP GLOBAL HARD INSURANCE FUND - EQUITY
VIP FUND ASSETS FUND INDEX PORTFOLIO
----------------------- ------------------------ -----------------------
2018 2017 2018 2017 2018 2017
----------- ---------- ----------- ----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss)........... $ 86,664 $ 66,788 $ (21,206) $ (25,308) $ 108,008 $ 93,100
Net realized gain (loss)............... 419,961 (35,835) (328,197) (542,822) 838,203 790,061
Net change in unrealized appreciation
(depreciation) of investments........ (1,279,590) 790,464 (3,047,878) 284,049 (1,940,874) 625,587
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations............ (772,965) 821,417 (3,397,281) (284,081) (994,663) 1,508,748
----------- ---------- ----------- ----------- ----------- ----------
FROM CONTRACTOWNERS TRANSACTIONS:
Payments received from contractowners.. 357,713 357,549 1,237,119 1,460,432 384,111 345,043
Transfers between Variable Investment
Options including guaranteed
interest account, net................ (71,008) (97,295) (984,234) (751,613) 6,322,884 132,959
Redemptions for contract benefits and
terminations......................... (146,719) (166,930) (335,854) (401,384) (1,385,646) (205,024)
Contract maintenance charges........... (225,890) (229,794) (506,349) (581,986) (210,430) (123,888)
----------- ---------- ----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from contractowners
transactions......................... (85,904) (136,470) (589,318) (274,551) 5,110,919 149,090
----------- ---------- ----------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... (858,869) 684,947 (3,986,599) (558,632) 4,116,256 1,657,838
NET ASSETS -- BEGINNING OF YEAR OR
PERIOD................................. 5,261,741 4,576,794 12,427,969 12,986,601 8,911,906 7,254,068
----------- ---------- ----------- ----------- ----------- ----------
NET ASSETS -- END OF YEAR OR PERIOD..... $ 4,402,872 $5,261,741 $ 8,441,370 $12,427,969 $13,028,162 $8,911,906
=========== ========== =========== =========== =========== ==========
|
The accompanying notes are an integral part of these financial statements.
FSA-96
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
The change in units outstanding for the years or periods ended December 31,
2018 and 2017 were as follows:
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
1290 VT CONVERTIBLE SECURITIES.................... B 18 (3) 15 7 (1) 6
1290 VT DOUBLELINE DYNAMIC ALLOCATION............. B 35 (114) (79) 78 (10) 68
1290 VT DOUBLELINE OPPORTUNISTIC BOND............. B 14 (4) 10 3 -- 3
1290 VT EQUITY INCOME............................. A 1 (5) (4) 4 (3) 1
1290 VT EQUITY INCOME............................. B 6 (7) (1) 6 (8) (2)
1290 VT GAMCO MERGERS & ACQUISITIONS.............. A 11 (26) (15) 31 (5) 26
1290 VT GAMCO MERGERS & ACQUISITIONS.............. B 13 (15) (2) 14 (13) 1
1290 VT GAMCO SMALL COMPANY VALUE................. A 172 (103) 69 121 (102) 19
1290 VT GAMCO SMALL COMPANY VALUE................. B 34 (55) (21) 44 (54) (10)
1290 VT SMARTBETA EQUITY.......................... B 47 (5) 42 10 (2) 8
1290 VT SOCIALLY RESPONSIBLE...................... A -- -- -- 1 (1) --
1290 VT SOCIALLY RESPONSIBLE...................... B 4 (8) (4) 7 (5) 2
ALL ASSET GROWTH-ALT 20........................... B 73 (54) 19 125 (32) 93
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL
CAPITALIZATION FUND/SM/.......................... CLASS 4 59 (13) 46 35 (13) 22
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD
FUND(R).......................................... CLASS 4 223 (41) 182 82 (32) 50
AXA 400 MANAGED VOLATILITY........................ B 3 (5) (2) 8 (6) 2
AXA 500 MANAGED VOLATILITY........................ B 13 (7) 6 12 (6) 6
AXA 2000 MANAGED VOLATILITY....................... B 5 (4) 1 9 (4) 5
AXA AGGRESSIVE ALLOCATION......................... A 51 (43) 8 44 (48) (4)
AXA AGGRESSIVE ALLOCATION......................... B 20 (42) (22) 22 (33) (11)
AXA BALANCED STRATEGY............................. B 37 (16) 21 47 (10) 37
AXA CONSERVATIVE ALLOCATION....................... A 33 (30) 3 31 (48) (17)
AXA CONSERVATIVE ALLOCATION....................... B 11 (10) 1 7 (19) (12)
AXA CONSERVATIVE GROWTH STRATEGY.................. B 4 (5) (1) 10 (5) 5
|
The accompanying notes are an integral part of these financial statements.
FSA-97
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA CONSERVATIVE STRATEGY......................... B 8 (5) 3 3 (5) (2)
AXA CONSERVATIVE-PLUS ALLOCATION.................. A 72 (37) 35 60 (34) 26
AXA CONSERVATIVE-PLUS ALLOCATION.................. B 7 (12) (5) 10 (15) (5)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. A 18 (8) 10 6 (7) (1)
AXA GLOBAL EQUITY MANAGED VOLATILITY.............. B 9 (39) (30) 9 (48) (39)
AXA GROWTH STRATEGY............................... B 27 (25) 2 35 (9) 26
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... A 2 (5) (3) 2 (7) (5)
AXA INTERNATIONAL CORE MANAGED VOLATILITY......... B 14 (25) (11) 11 (65) (54)
AXA INTERNATIONAL MANAGED VOLATILITY.............. B 7 (3) 4 7 (3) 4
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ A 17 (20) (3) 11 (11) --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY........ B 17 (40) (23) 17 (46) (29)
AXA LARGE CAP CORE MANAGED VOLATILITY............. A 5 (2) 3 4 (2) 2
AXA LARGE CAP CORE MANAGED VOLATILITY............. B 4 (10) (6) 5 (13) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... A 7 (14) (7) 8 (16) (8)
AXA LARGE CAP GROWTH MANAGED VOLATILITY........... B 10 (59) (49) 10 (62) (52)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ A 16 (98) (82) 25 (111) (86)
AXA LARGE CAP VALUE MANAGED VOLATILITY............ B 8 (50) (42) 10 (48) (38)
AXA MID CAP VALUE MANAGED VOLATILITY.............. A 10 (63) (53) 14 (62) (48)
AXA MID CAP VALUE MANAGED VOLATILITY.............. B 2 (3) (1) 2 (4) (2)
AXA MODERATE ALLOCATION........................... A 147 (145) 2 124 (147) (23)
AXA MODERATE ALLOCATION........................... B 98 (79) 19 31 (78) (47)
AXA MODERATE GROWTH STRATEGY...................... B 45 (28) 17 52 (43) 9
AXA MODERATE-PLUS ALLOCATION...................... A 198 (184) 14 160 (157) 3
AXA MODERATE-PLUS ALLOCATION...................... B 60 (134) (74) 47 (87) (40)
AXA/AB SMALL CAP GROWTH........................... A 73 (37) 36 33 (52) (19)
AXA/AB SMALL CAP GROWTH........................... B 7 (14) (7) 4 (19) (15)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. A 11 (14) (3) 21 (42) (21)
AXA/CLEARBRIDGE LARGE CAP GROWTH.................. B 22 (35) (13) 22 (56) (34)
|
The accompanying notes are an integral part of these financial statements.
FSA-98
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
AXA/JANUS ENTERPRISE.............................. A 4 (17) (13) 11 (15) (4)
AXA/JANUS ENTERPRISE.............................. B 27 (22) 5 15 (18) (3)
AXA/LOOMIS SAYLES GROWTH.......................... A 47 (21) 26 30 (21) 9
AXA/LOOMIS SAYLES GROWTH.......................... B 18 (15) 3 13 (13) --
BLACKROCK GLOBAL ALLOCATION V.I. FUND............. CLASS III 173 (64) 109 67 (45) 22
CHARTER/SM/ MULTI-SECTOR BOND..................... A 16 (24) (8) 17 (49) (32)
CHARTER/SM/ MULTI-SECTOR BOND..................... B 15 (23) (8) 12 (18) (6)
CHARTER/SM/ SMALL CAP GROWTH...................... B 15 (15) -- 9 (10) (1)
CHARTER/SM/ SMALL CAP VALUE....................... A 1 (7) (6) 1 (4) (3)
CHARTER/SM/ SMALL CAP VALUE....................... B 4 (7) (3) 5 (9) (4)
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO............ CLASS II 44 (13) 31 27 (2) 25
EQ/AMERICAN CENTURY MID CAP VALUE................. B 453 (10) 443 -- -- --
EQ/BLACKROCK BASIC VALUE EQUITY................... A 110 (113) (3) 90 (89) 1
EQ/BLACKROCK BASIC VALUE EQUITY................... B 16 (38) (22) 17 (48) (31)
EQ/CAPITAL GUARDIAN RESEARCH...................... A 19 (11) 8 12 (10) 2
EQ/CAPITAL GUARDIAN RESEARCH...................... B 8 (29) (21) 22 (41) (19)
EQ/COMMON STOCK INDEX............................. A 185 (283) (98) 257 (321) (64)
EQ/COMMON STOCK INDEX............................. B 47 (72) (25) 41 (71) (30)
EQ/CORE BOND INDEX................................ A 21 (27) (6) 191 (209) (18)
EQ/CORE BOND INDEX................................ B 20 (30) (10) 25 (18) 7
EQ/EQUITY 500 INDEX............................... A 310 (233) 77 335 (234) 101
EQ/EQUITY 500 INDEX............................... B 122 (101) 21 134 (97) 37
EQ/FIDELITY INSTITUTIONAL AM/SM/ LARGE CAP........ B 608 (19) 589 -- -- --
EQ/FRANKLIN RISING DIVIDENDS...................... B 243 (14) 229 -- -- --
EQ/FRANKLIN STRATEGIC INCOME...................... B 257 (7) 250 -- -- --
EQ/GLOBAL BOND PLUS............................... A 25 (20) 5 23 (23) --
EQ/GLOBAL BOND PLUS............................... B 10 (9) 1 10 (11) (1)
EQ/GOLDMAN SACHS MID CAP VALUE.................... B 50 (2) 48 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
------------- ------- -------- ---------- ------- -------- ----------
EQ/INTERMEDIATE GOVERNMENT BOND................... A 61 (224) (163) 93 (77) 16
EQ/INTERMEDIATE GOVERNMENT BOND................... B 10 (14) (4) 9 (21) (12)
EQ/INTERNATIONAL EQUITY INDEX..................... A 162 (176) (14) 208 (165) 43
EQ/INTERNATIONAL EQUITY INDEX..................... B 43 (45) (2) 40 (38) 2
EQ/INVESCO COMSTOCK............................... A 18 (20) (2) 32 (18) 14
EQ/INVESCO COMSTOCK............................... B 8 (6) 2 9 (8) 1
EQ/INVESCO GLOBAL REAL ESTATE..................... B 465 (16) 449 -- -- --
EQ/INVESCO INTERNATIONAL GROWTH................... B 541 (15) 526 -- -- --
EQ/IVY ENERGY..................................... B 261 (11) 250 -- -- --
EQ/IVY MID CAP GROWTH............................. B 265 (5) 260 -- -- --
EQ/IVY SCIENCE AND TECHNOLOGY..................... B 272 (15) 257 -- -- --
EQ/JPMORGAN VALUE OPPORTUNITIES................... A 71 (12) 59 22 (13) 9
EQ/JPMORGAN VALUE OPPORTUNITIES................... B 17 (21) (4) 32 (16) 16
EQ/LARGE CAP GROWTH INDEX......................... A 23 (17) 6 15 (11) 4
EQ/LARGE CAP GROWTH INDEX......................... B 32 (68) (36) 32 (65) (33)
EQ/LARGE CAP VALUE INDEX.......................... A 15 (31) (16) 27 (30) (3)
EQ/LARGE CAP VALUE INDEX.......................... B 22 (23) (1) 21 (11) 10
EQ/LAZARD EMERGING MARKETS EQUITY................. B 1,026 (60) 966 -- -- --
EQ/MFS INTERNATIONAL GROWTH....................... B 34 (36) (2) 44 (44) --
EQ/MFS INTERNATIONAL VALUE........................ B 1,081 (24) 1,057 -- -- --
EQ/MFS UTILITIES SERIES........................... B 106 (4) 102 -- -- --
EQ/MID CAP INDEX.................................. A 57 (23) 34 41 (22) 19
EQ/MID CAP INDEX.................................. B 41 (56) (15) 92 (60) 32
EQ/MONEY MARKET................................... A 4,482 (4,402) 80 3,502 (3,722) (220)
EQ/MONEY MARKET................................... B 580 (667) (87) 474 (416) 58
EQ/PIMCO REAL RETURN.............................. B 322 (17) 305 -- -- --
EQ/PIMCO TOTAL RETURN............................. B 768 (33) 735 -- -- --
EQ/PIMCO ULTRA SHORT BOND......................... A 18 (20) (2) 32 (19) 13
|
The accompanying notes are an integral part of these financial statements.
FSA-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
--------------- ------- -------- ---------- ------- -------- ----------
EQ/PIMCO ULTRA SHORT BOND......................... B 25 (26) (1) 21 (17) 4
EQ/QUALITY BOND PLUS.............................. A 39 (49) (10) 36 (66) (30)
EQ/QUALITY BOND PLUS.............................. B 10 (16) (6) 11 (18) (7)
EQ/SMALL COMPANY INDEX............................ A 45 (37) 8 60 (31) 29
EQ/SMALL COMPANY INDEX............................ B 16 (11) 5 16 (7) 9
EQ/T. ROWE PRICE GROWTH STOCK..................... A 203 (79) 124 178 (113) 65
EQ/T. ROWE PRICE GROWTH STOCK..................... B 53 (57) (4) 61 (42) 19
EQ/T. ROWE PRICE HEALTH SCIENCES.................. B 136 (2) 134 -- -- --
EQ/UBS GROWTH & INCOME............................ B 7 (23) (16) 33 (20) 13
FIDELITY(R) VIP ASSET MANAGER: GROWTH PORTFOLIO... SERVICE CLASS 2 7 (8) (1) 3 (2) 1
FIDELITY(R) VIP EQUITY-INCOME PORTFOLIO........... SERVICE CLASS 2 13 (13) -- 16 (11) 5
FIDELITY(R) VIP GOVERNMENT MONEY MARKET PORTFOLIO. SERVICE CLASS 2 47 (38) 9 44 (21) 23
FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO......... SERVICE CLASS 2 24 (21) 3 30 (23) 7
FIDELITY(R) VIP HIGH INCOME PORTFOLIO............. SERVICE CLASS 2 16 (34) (18) 21 (15) 6
FIDELITY(R) VIP INVESTMENT GRADE BOND PORTFOLIO... SERVICE CLASS 2 358 (175) 183 289 (150) 139
FIDELITY(R) VIP MID CAP PORTFOLIO................. SERVICE CLASS 2 144 (93) 51 108 (67) 41
FIDELITY(R) VIP VALUE PORTFOLIO................... SERVICE CLASS 2 23 (2) 21 4 (1) 3
FIDELITY(R) VIP VALUE STRATEGIES PORTFOLIO........ SERVICE CLASS 2 4 (3) 1 4 (1) 3
FRANKLIN MUTUAL SHARES VIP FUND................... CLASS 2 27 (43) (16) 22 (16) 6
FRANKLIN SMALL CAP VALUE VIP FUND................. CLASS 2 63 (48) 15 81 (40) 41
INVESCO V.I. DIVERSIFIED DIVIDEND FUND............ SERIES II 128 (119) 9 166 (146) 20
INVESCO V.I. MID CAP CORE EQUITY FUND............. SERIES II 17 (8) 9 12 (6) 6
INVESCO V.I. SMALL CAP EQUITY FUND................ SERIES II 18 (8) 10 11 (4) 7
IVY VIP GLOBAL EQUITY INCOME...................... CLASS II 5 (6) (1) 8 (4) 4
IVY VIP HIGH INCOME............................... CLASS II 270 (104) 166 186 (93) 93
IVY VIP SMALL CAP GROWTH.......................... CLASS II 33 (16) 17 -- -- --
|
The accompanying notes are an integral part of these financial statements.
FSA-101
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2018 AND 2017
2018 2017
-------------------------- --------------------------
UNITS UNITS NET UNITS UNITS NET
ISSUED REDEEMED INCREASE ISSUED REDEEMED INCREASE
SHARE CLASS** (000'S) (000'S) (DECREASE) (000'S) (000'S) (DECREASE)
-------------------- ------- -------- ---------- ------- -------- ----------
MFS(R) INVESTORS TRUST SERIES..................... SERVICE CLASS 2 (6) (4) 8 (5) 3
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK
PORTFOLIO........................................ SERVICE CLASS 10 (4) 6 8 (7) 1
MULTIMANAGER AGGRESSIVE EQUITY.................... A 20 (44) (24) 24 (56) (32)
MULTIMANAGER AGGRESSIVE EQUITY.................... B 55 (62) (7) 14 (17) (3)
MULTIMANAGER CORE BOND............................ A 25 (18) 7 34 (23) 11
MULTIMANAGER CORE BOND............................ B 24 (44) (20) 43 (79) (36)
MULTIMANAGER MID CAP GROWTH....................... A 1 (3) (2) 1 (2) (1)
MULTIMANAGER MID CAP GROWTH....................... B 5 (7) (2) 5 (33) (28)
MULTIMANAGER MID CAP VALUE........................ A 2 (2) -- 2 (6) (4)
MULTIMANAGER MID CAP VALUE........................ B 4 (12) (8) 6 (39) (33)
MULTIMANAGER TECHNOLOGY........................... A 43 (17) 26 37 (38) (1)
MULTIMANAGER TECHNOLOGY........................... B 59 (58) 1 34 (26) 8
NATURAL RESOURCES PORTFOLIO....................... CLASS II 79 (105) (26) 196 (180) 16
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO .. ADVISOR CLASS 25 (18) 7 29 (18) 11
T. ROWE PRICE EQUITY INCOME PORTFOLIO............. CLASS II 12 (10) 2 18 (21) (3)
TARGET 2015 ALLOCATION............................ B 27 (14) 13 44 (24) 20
TARGET 2025 ALLOCATION............................ B 53 (18) 35 68 (18) 50
TARGET 2035 ALLOCATION............................ B 41 (10) 31 28 (6) 22
TARGET 2045 ALLOCATION............................ B 29 (6) 23 25 (12) 13
TARGET 2055 ALLOCATION............................ B 11 (4) 7 8 (2) 6
TEMPLETON DEVELOPING MARKETS VIP FUND............. CLASS 2 114 (91) 23 87 (54) 33
TEMPLETON GLOBAL BOND VIP FUND.................... CLASS 2 161 (104) 57 150 (93) 57
TEMPLETON GROWTH VIP FUND......................... CLASS 2 3 (4) (1) 5 (6) (1)
VANECK VIP GLOBAL HARD ASSETS FUND................ CLASS S 30 (38) (8) 50 (54) (4)
VANGUARD VARIABLE INSURANCE FUND - EQUITY INDEX
PORTFOLIO........................................ INVESTOR SHARE CLASS 26 (9) 17 7 (7) --
|
The accompanying notes are an integral part of these financial statements.
** Share class reflects the share class of the Portfolio in which the units of
the Variable Investment Option are invested, as further described in Note 5
of these financial statements.
The -- on the Units Issued and Units Redeemed section may represent no units
issued and units redeemed or units issued and units redeemed of less than 500.
FSA-102
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2018
1. Organization
AXA Equitable Life Insurance Company ("AXA Equitable") Separate Account FP
("the Account") is organized as a unit investment trust, a type of
investment company, and is registered with the Securities and Exchange
Commission ("SEC") under the Investment Company Act of 1940 (the "1940
Act"). The Account follows the investment company and reporting guidance of
the Financial Accounting Standards Board Accounting Standards Codification
Topic 946 - Investment Companies, which is part of accounting principles
generally accepted in the United States of America ("GAAP"). The Account has
Variable Investment Options, each of which invest in shares of a mutual fund
portfolio of AIM Variable Insurance Funds (Invesco Variable Insurance
Funds), American Funds Insurance Series(R), AXA Premier VIP Trust ("VIP"),
BlackRock Variable Series Funds, Inc., EQ Advisors Trust ("EQAT"),
Fidelity(R) Variable Insurance Products Fund, Franklin Templeton Variable
Insurance Products Trust, Ivy Funds Variable Insurance Portfolios, Legg
Mason Partners Variable Equity Trust, MFS(R) Variable Insurance Trusts,
PIMCO Variable Insurance Trust, T. Rowe Price Equity Series, Inc., The
Prudential Series Fund, Van Eck VIP Trust, and Vanguard Variable Insurance
Fund (collectively, "the Trusts"). The Trusts are open-ended investment
management companies that sell shares of a portfolio ("Portfolio") of a
mutual fund to separate accounts of insurance companies. Each Portfolio of
the Trusts has separate investment objectives. These financial statements
and notes are those of the Variable Investment Options of the Account.
The Account consists of the Variable Investment Options listed below.
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS)
. Invesco V.I. Diversified Dividend Fund
. Invesco V.I. Mid Cap Core Equity Fund
. Invesco V.I. Small Cap Equity Fund
AMERICAN FUNDS INSURANCE SERIES(R)
. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
. American Funds Insurance Series(R) New World Fund(R)
AXA PREMIER VIP TRUST*
. AXA Aggressive Allocation
. AXA Conservative Allocation
. AXA Conservative-Plus Allocation
. AXA Moderate Allocation
. AXA Moderate-Plus Allocation
. Charter/SM /Multi-Sector Bond
. Charter/SM /Small Cap Growth
. Charter/SM /Small Cap Value
. Target 2015 Allocation
. Target 2025 Allocation
. Target 2035 Allocation
. Target 2045 Allocation
. Target 2055 Allocation
BLACKROCK VARIABLE SERIES FUNDS, INC.
. BlackRock Global Allocation V.I. Fund
EQ ADVISORS TRUST*
. 1290 VT Convertible Securities
. 1290 VT DoubleLine Dynamic Allocation
. 1290 VT DoubleLine Opportunistic Bond
. 1290 VT Equity Income
. 1290 VT Gamco Mergers & Acquisitions
. 1290 VT Gamco Small Company Value
. 1290 VT SmartBeta Equity
. 1290 VT Socially Responsible
. All Asset Growth-Alt 20
. AXA 400 Managed Volatility
. AXA 500 Managed Volatility
. AXA 2000 Managed Volatility
. AXA Balanced Strategy
. AXA Conservative Growth Strategy
. AXA Conservative Strategy
. AXA Global Equity Managed Volatility
. AXA Growth Strategy
. AXA International Core Managed Volatility
. AXA International Managed Volatility
. AXA International Value Managed Volatility
. AXA Large Cap Core Managed Volatility
. AXA Large Cap Growth Managed Volatility
. AXA Large Cap Value Managed Volatility
. AXA Mid Cap Value Managed Volatility
. AXA Moderate Growth Strategy
. AXA/AB Small Cap Growth
. AXA/Clearbridge Large Cap Growth
. AXA/Janus Enterprise
. AXA/Loomis Sayles Growth
. EQ/American Century Mid Cap Value
. EQ/BlackRock Basic Value Equity
. EQ/Capital Guardian Research
. EQ/Common Stock Index
. EQ/Core Bond Index
. EQ/Equity 500 Index
. EQ/Fidelity Institutional AM/SM /Large Cap
. EQ/Franklin Rising Dividends
. EQ/Franklin Strategic Income
. EQ/Global Bond PLUS
. EQ/Goldman Sachs Mid Cap Value
. EQ/Intermediate Government Bond
. EQ/International Equity Index
FSA-103
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Continued)
. EQ/Invesco Comstock
. EQ/Invesco Global Real Estate
. EQ/Invesco International Growth
. EQ/Ivy Energy
. EQ/Ivy Mid Cap Growth
. EQ/Ivy Science And Technology
. EQ/JPMorgan Value Opportunities
. EQ/Large Cap Growth Index
. EQ/Large Cap Value Index
. EQ/Lazard Emerging Markets EQuity
. EQ/MFS International Growth
. EQ/MFS International Value
. EQ/MFS Utilities Series
. EQ/Mid Cap Index
. EQ/Money Market
. EQ/PIMCO Real Return
. EQ/PIMCO Total Return
. EQ/PIMCO Ultra Short Bond
. EQ/Quality Bond PLUS
. EQ/Small Company Index
. EQ/T. Rowe Price Growth Stock
. EQ/T. Rowe Price Health Sciences
. EQ/UBS Growth & Income
. Multimanager Aggressive Equity
. Multimanager Core Bond
. Multimanager Mid Cap Growth
. Multimanager Mid Cap Value
. Multimanager Technology
FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND
. Fidelity(R) VIP Asset Manager: Growth Portfolio
. Fidelity(R) VIP Equity-Income Portfolio
. Fidelity(R) VIP Government Money Market Portfolio
. Fidelity(R) VIP Growth & Income Portfolio
. Fidelity(R) VIP High Income Portfolio
. Fidelity(R) VIP Investment Grade Bond Portfolio
. Fidelity(R) VIP Mid Cap Portfolio
. Fidelity(R) VIP Value Portfolio
. Fidelity(R) VIP Value Strategies Portfolio
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
. Franklin Mutual Shares VIP Fund
. Franklin Small Cap Value VIP Fund
. Templeton Developing Markets VIP Fund
. Templeton Global Bond VIP Fund
. Templeton Growth VIP Fund
IVY FUNDS VARIABLE INSURANCE PORTFOLIOS
. Ivy VIP Global Equity Income/(1)/
. Ivy VIP High Income
. Ivy VIP Small Cap Growth
LEGG MASON PARTNERS VARIABLE EQUITY TRUST
. ClearBridge Variable Mid Cap Portfolio
MFS(R) VARIABLE INSURANCE TRUSTS
. MFS(R) Investors Trust Series
. MFS(R) Massachusetts Investors Growth Stock Portfolio
PIMCO VARIABLE INSURANCE TRUST
. PIMCO CommodityRealReturn(R) Strategy Portfolio
T. ROWE PRICE EQUITY SERIES, INC.
. T. Rowe Price Equity Income Portfolio
THE PRUDENTIAL SERIES FUND
. Natural Resources Portfolio
VANECK VIP TRUST
. VanEck VIP Global Hard Assets Fund
VANGUARD VARIABLE INSURANCE FUND
. Vanguard Variable Insurance Fund -- Equity Index Portfolio
(1)Formerly known as Ivy VIP Dividend Opportunities.
* An affiliate of AXA Equitable providing advisory and other services to one
or more Portfolios of this Trust, as further described in Note 5 of these
financial statements.
FSA-104
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
1. Organization (Concluded)
The Account is used to fund benefits for the following Variable Life
products (collectively, the "Contracts"):
. Accumulator Life . IL Legacy II
. Incentive Life . IL Legacy III
. Incentive Life 2000 . IL Protector/SM/
. Incentive Life Sales (1999 and . Incentive Life COLI
after) . Incentive Life COLI '04
. Incentive Life '02 . Champion 2000
. Incentive Life '06 . Survivorship 2000
. Incentive Life(R) Optimizer . Survivorship Incentive Life 1999
. Incentive Life Optimizer. II . Survivorship Incentive Life '02
. Incentive Life Optimizer. III . Survivorship Incentive Life(R)
. Incentive Life Plus/SM/ Legacy
. Incentive Life Plus Original . SP-Flex
Series . Corporate Owned Incentive Life(R)
. Paramount Life
. IL Legacy
|
The Incentive Life 2000, Champion 2000 and Survivorship 2000 Contracts are
herein referred to as the "Series 2000 Policies." Incentive Life Plus/SM/
Contracts offered with a prospectus dated on or after September 15, 1995,
are referred to as "Incentive Life Plus/SM/." Incentive Life Plus Contracts
issued with a prior prospectus are referred to as "Incentive Life Plus
Original Series."
Under applicable insurance law, the assets and liabilities of the Account
are clearly identified and distinguished from AXA Equitable's other assets
and liabilities. All Contracts are issued by AXA Equitable. The assets of
the Account are the property of AXA Equitable. However, the portion of the
Account's assets attributable to the Contracts will not be chargeable with
liabilities arising out of any other business AXA Equitable may conduct.
The amount retained by AXA Equitable in the Account arises primarily from
(1) contributions from AXA Equitable and (2) that portion, determined
ratably, of the Account's investment results applicable to those assets in
the Account in excess of the net assets attributable to accumulation of
units. Amounts retained by AXA Equitable are not subject to charges for
mortality and expense charges and administrative charges. Amounts retained
by AXA Equitable in the Account may be transferred at any time by AXA
Equitable to its General Account ("General Account").
Each of the Variable Investment Options of the Account bears indirect
exposure to the market, credit, and liquidity risks of the Portfolio in
which it invests. These financial statements and footnotes should be read in
conjunction with the financial statements and footnotes of the Portfolios of
the Trusts, which are distributed by AXA Equitable to the Contractowners of
the Variable Investment Options of the Account.
In the normal course of business, AXA Equitable may have agreements to
indemnify another party under given circumstances. The maximum exposure
under these arrangements is unknown as this would involve future claims that
may be, but have not been, made against the Variable Investment Options of
the Account. Based on experience, the risk of material loss is expected to
be remote.
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with GAAP.
The preparation of financial statements in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
INVESTMENTS:
Investments are made in shares of the Portfolios and the fair values of
investments are the reported net asset values per share of the respective
Portfolios. The net asset value is determined by the Trusts using the fair
value of the underlying assets of the Portfolio less liabilities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME:
Investment transactions are recorded on the trade date. Dividend income and
and net realized gain distributions from the Portfolios are recorded and
automatically reinvested on the ex-dividend date. Net realized gain (loss )
on investments are gains and losses on redemptions of investments in the
Portfolios (determined on the identified cost basis).
FSA-105
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
2. Significant Accounting Policies (Concluded)
DUE TO AND DUE FROM:
Receivable/payable for policy-related transactions represent amounts due
to/from AXA Equitable's General Account primarily related to premiums,
surrenders, death benefits and amounts transferred among various Portfolios
by Contractowners. Receivable/payable for shares of the Portfolios
sold/purchased represent unsettled trades.
ACCUMULATION NONUNITIZED:
Accumulation nonunitized represents a product offered based upon a dollar
amount (starting at $1) rather than units. It is similar to Accumulation
Units accounts, which are based upon units, as the dollar amount of the
Contractowner account changes with the investment activity of the Variable
Investment Option the Contract is invested in, net of contract charges.
CONTRACT PAYMENTS AND TRANSFERS:
Payments received from Contractowners represent participant contributions
under the Contracts reduced by deductions and charges, including premium
charges, as applicable, and state premium taxes. Contractowners may allocate
amounts in their individual accounts to the Variable Investment Options, and
(except for SP-Flex Contracts), to the guaranteed interest account of AXA
Equitable's General Account, and/or index fund options of Separate Account
No. 67.
Transfers between Variable Investment Options including the guaranteed
interest account, net, are amounts that participants have directed to be
moved among Portfolios, including permitted transfers to and from the
guaranteed interest account, and/or index fund options of Separate Account
No. 67. The net assets of any Variable Investment Option may not be less
than the aggregate value of the Contractowner accounts allocated to that
Variable Investment Option. AXA Equitable is required by state insurance
laws to set aside additional assets in AXA Equitable's General Account to
provide for other policy benefits. AXA Equitable's General Account is
subject to creditor rights.
Redemptions for contract benefits and terminations are payments to
participants and beneficiaries made under the terms of the Contracts and
amounts that participants have requested to be withdrawn and paid to them.
Withdrawal charges, if any, are included in Redemptions for contract
benefits and terminations to the extent that such charges apply to the
Contracts. Administrative charges, if any, are included in Contract
maintenance charges to the extent that such charges apply to the Contracts.
TAXES:
The operations of the Account are included in the federal income tax return
of AXA Equitable which is taxed as a life insurance company under the
provisions of the Internal Revenue Code. No federal income tax based on net
income or realized and unrealized capital gains is currently applicable to
Contracts participating in the Account by reason of applicable provisions of
the Internal Revenue Code and no federal income tax payable by AXA Equitable
is expected to affect the unit value of Contracts participating in the
Account. Accordingly, no provision for income taxes is required. However,
AXA Equitable retains the right to charge for any federal income tax which
is attributable to the Account if the law is changed.
3. Fair Value Disclosures
Under GAAP, fair value is the price that would be received for an asset or
paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction
between market participants on the measurement date. GAAP also establishes a
fair value hierarchy that requires an entity to maximize the use of
observable inputs and minimize the use of unobservable inputs when measuring
fair value, and identifies three levels of inputs that may be used to
measure fair value:
Level 1 -- Quoted prices that are publicly available for identical assets in
active markets. Level 1 fair values generally are supported by market
transactions that occur with sufficient frequency and volume to provide
pricing information on an ongoing basis.
Level 2 -- Observable inputs other than Level 1 prices, such as quoted
prices for similar assets, quoted prices in markets that are not active, and
inputs to model-derived valuations that are directly observable or can be
corroborated by observable market data.
Level 3 -- Unobservable inputs supported by little or no market activity and
often requiring significant judgment or estimation, such as an entity's own
assumptions about the cash flows or other significant components of value
that market participants would use in pricing the asset or liability.
All investments of each Variable Investment Option of the Account have been
classified as Level 1. There were no transfers between level 1, level 2 and
level 3 during the year.
FSA-106
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio
The cost of purchases and proceeds from sales of Portfolios for the year
ended December 31, 2018 were as follows:
PURCHASES SALES
------------ ------------
1290 VT Convertible Securities........................................................... $ 908,906 $ 179,688
1290 VT DoubleLine Dynamic Allocation.................................................... 1,756,785 2,371,422
1290 VT DoubleLine Opportunistic Bond.................................................... 570,015 144,720
1290 VT Equity Income.................................................................... 7,894,957 2,417,081
1290 VT Gamco Mergers & Acquisitions..................................................... 3,248,893 2,896,325
1290 VT Gamco Small Company Value........................................................ 26,861,276 22,036,325
1290 VT SmartBeta Equity................................................................. 1,017,412 191,183
1290 VT Socially Responsible............................................................. 960,310 1,439,902
All Asset Growth-Alt 20.................................................................. 8,222,453 3,296,590
American Funds Insurance Series(R) Global Small Capitalization Fund/SM/.................. 3,248,746 958,715
American Funds Insurance Series(R) New World Fund(R)..................................... 12,043,624 2,380,343
AXA 400 Managed Volatility............................................................... 1,032,807 1,011,989
AXA 500 Managed Volatility............................................................... 3,230,347 1,685,738
AXA 2000 Managed Volatility.............................................................. 1,315,936 733,567
AXA Aggressive Allocation................................................................ 23,047,413 19,723,191
AXA Balanced Strategy.................................................................... 7,413,328 2,632,878
AXA Conservative Allocation.............................................................. 4,608,404 4,500,357
AXA Conservative Growth Strategy......................................................... 855,025 720,816
AXA Conservative Strategy................................................................ 1,118,965 663,607
AXA Conservative-Plus Allocation......................................................... 5,818,381 5,833,980
AXA Global Equity Managed Volatility..................................................... 15,951,941 15,807,304
AXA Growth Strategy...................................................................... 6,867,561 4,732,899
AXA International Core Managed Volatility................................................ 3,550,246 5,533,520
AXA International Managed Volatility..................................................... 1,011,075 386,255
AXA International Value Managed Volatility............................................... 6,117,094 9,478,502
AXA Large Cap Core Managed Volatility.................................................... 4,029,933 2,704,999
AXA Large Cap Growth Managed Volatility.................................................. 28,959,749 30,249,995
AXA Large Cap Value Managed Volatility................................................... 32,319,185 37,933,605
AXA Mid Cap Value Managed Volatility..................................................... 21,785,425 22,166,413
AXA Moderate Allocation.................................................................. 76,984,189 83,305,728
AXA Moderate Growth Strategy............................................................. 11,862,989 4,925,299
AXA Moderate-Plus Allocation............................................................. 50,558,433 60,222,292
AXA/AB Small Cap Growth.................................................................. 44,250,852 22,193,108
AXA/Clearbridge Large Cap Growth......................................................... 13,793,575 11,357,474
AXA/Janus Enterprise..................................................................... 7,613,958 9,090,430
AXA/Loomis Sayles Growth................................................................. 13,427,796 8,002,194
BlackRock Global Allocation V.I. Fund.................................................... 3,287,502 1,357,824
Charter/SM/ Multi-Sector Bond............................................................ 5,917,176 9,459,063
Charter/SM/ Small Cap Growth............................................................. 4,961,637 2,995,009
Charter/SM/ Small Cap Value.............................................................. 2,358,557 4,708,732
ClearBridge Variable Mid Cap Portfolio................................................... 560,119 156,857
EQ/American Century Mid Cap Value........................................................ 55,317,132 1,282,284
EQ/BlackRock Basic Value Equity.......................................................... 32,689,194 26,002,008
EQ/Capital Guardian Research............................................................. 18,679,312 11,345,095
EQ/Common Stock Index.................................................................... 135,954,238 186,357,714
EQ/Core Bond Index....................................................................... 6,846,477 8,184,427
EQ/Equity 500 Index...................................................................... 104,223,887 103,669,937
EQ/Fidelity Institutional AM/SM/ Large Cap............................................... 109,716,707 3,778,191
EQ/Franklin Rising Dividends............................................................. 59,689,147 3,360,499
EQ/Franklin Strategic Income............................................................. 35,028,431 866,146
EQ/Global Bond Plus...................................................................... 2,582,039 2,518,491
|
FSA-107
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Continued)
PURCHASES SALES
------------ ------------
EQ/Goldman Sachs Mid Cap Value................................................................... $ 9,650,342 $ 294,756
EQ/Intermediate Government Bond.................................................................. 6,196,759 46,636,788
EQ/International Equity Index.................................................................... 24,926,472 30,192,929
EQ/Invesco Comstock.............................................................................. 4,958,413 3,823,934
EQ/Invesco Global Real Estate.................................................................... 38,172,463 1,126,032
EQ/Invesco International Growth.................................................................. 35,222,745 1,336,815
EQ/Ivy Energy.................................................................................... 15,166,547 363,539
EQ/Ivy Mid Cap Growth............................................................................ 37,251,933 817,732
EQ/Ivy Science And Technology.................................................................... 39,663,326 2,947,375
EQ/JPMorgan Value Opportunities.................................................................. 14,069,232 8,412,337
EQ/Large Cap Growth Index........................................................................ 20,129,904 18,275,077
EQ/Large Cap Value Index......................................................................... 6,206,203 6,468,630
EQ/Lazard Emerging Markets Equity................................................................ 56,110,645 2,785,617
EQ/MFS International Growth...................................................................... 11,473,563 6,004,359
EQ/MFS International Value....................................................................... 109,777,012 2,299,765
EQ/MFS Utilities Series.......................................................................... 2,588,703 201,945
EQ/Mid Cap Index................................................................................. 28,056,220 19,963,043
EQ/Money Market.................................................................................. 199,251,630 215,403,115
EQ/PIMCO Real Return............................................................................. 25,870,834 1,597,898
EQ/PIMCO Total Return............................................................................ 70,255,240 2,442,187
EQ/PIMCO Ultra Short Bond........................................................................ 5,741,098 5,277,481
EQ/Quality Bond Plus............................................................................. 4,768,452 7,696,694
EQ/Small Company Index........................................................................... 23,146,392 13,900,781
EQ/T. Rowe Price Growth Stock.................................................................... 34,458,545 19,913,019
EQ/T. Rowe Price Health Sciences................................................................. 9,112,283 407,385
EQ/UBS Growth & Income........................................................................... 2,967,337 4,446,507
Fidelity(R) VIP Asset Manager: Growth Portfolio.................................................. 417,610 702,656
Fidelity(R) VIP Equity-Income Portfolio.......................................................... 523,360 458,734
Fidelity(R) VIP Government Money Market Portfolio................................................ 819,828 441,823
Fidelity(R) VIP Growth & Income Portfolio........................................................ 2,332,079 2,251,602
Fidelity(R) VIP High Income Portfolio............................................................ 1,011,739 2,193,076
Fidelity(R) VIP Investment Grade Bond Portfolio.................................................. 30,926,755 9,186,320
Fidelity(R) VIP Mid Cap Portfolio................................................................ 11,547,096 7,001,719
Fidelity(R) VIP Value Portfolio.................................................................. 920,966 150,283
Fidelity(R) VIP Value Strategies Portfolio ...................................................... 270,611 430,168
Franklin Mutual Shares VIP Fund.................................................................. 1,566,507 2,902,810
Franklin Small Cap Value VIP Fund................................................................ 5,064,151 2,537,019
Invesco V.I. Diversified Dividend Fund........................................................... 3,657,803 2,594,897
Invesco V.I. Mid Cap Core Equity Fund............................................................ 1,910,037 1,087,842
Invesco V.I. Small Cap Equity Fund............................................................... 1,423,305 959,812
Ivy VIP Global Equity Income..................................................................... 174,021 491,091
Ivy VIP High Income.............................................................................. 11,701,086 6,053,420
Ivy VIP Small Cap Growth......................................................................... 7,851,540 2,639,634
MFS(R) Investors Trust Series.................................................................... 544,574 1,068,435
MFS(R) Massachusetts Investors Growth Stock Portfolio............................................ 2,706,484 1,083,302
Multimanager Aggressive Equity................................................................... 68,977,681 50,760,463
Multimanager Core Bond........................................................................... 6,919,099 9,667,709
Multimanager Mid Cap Growth...................................................................... 6,039,496 3,450,655
Multimanager Mid Cap Value....................................................................... 4,566,495 4,106,317
Multimanager Technology.......................................................................... 49,874,863 33,337,893
Natural Resources Portfolio...................................................................... 3,889,499 5,664,775
PIMCO CommodityRealReturn(R) Strategy Portfolio.................................................. 1,947,049 1,246,936
T. Rowe Price Equity Income Portfolio............................................................ 3,981,862 2,031,385
|
FSA-108
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
4. Purchases and Sales of Portfolio (Concluded)
PURCHASES SALES
----------- -----------
Target 2015 Allocation....................................... $ 909,414 $ 859,824
Target 2025 Allocation....................................... 4,369,968 1,429,794
Target 2035 Allocation....................................... 3,072,839 1,111,330
Target 2045 Allocation....................................... 1,794,011 419,651
Target 2055 Allocation....................................... 720,388 299,175
Templeton Developing Markets VIP Fund........................ 14,385,495 11,499,331
Templeton Global Bond VIP Fund............................... 7,210,224 7,327,369
Templeton Growth VIP Fund.................................... 1,079,241 658,463
VanEck VIP Global Hard Assets Fund........................... 2,234,810 2,845,333
Vanguard Variable Insurance Fund -- Equity Index Portfolio... 8,187,225 2,796,592
|
5. Expenses and Related Party Transactions
The assets in each Variable Investment Option are invested in shares of a
corresponding Portfolio of the Trusts. Shares are offered by the Portfolios
at net asset value. Shares in which the Variable Investment Options invest
are categorized by the share class of the Portfolio. EQAT and VIP issue
Class A, Class B and Class K shares. All share classes issued by EQAT and
VIP are subject to fees for investment management, advisory services,
administration and other Portfolio expenses. Class A and Class B are also
subject to distribution fees imposed under a distribution plan (herein the
"Rule 12b-1 Plans") approved by the EQAT and VIP Trusts' Board of Trustees
and adopted by the applicable Trust. The Rule 12b-1 Plans provide that the
EQAT and VIP Trusts, on behalf of each related Portfolio, may charge a
maximum annual distribution and/or service (12b-1) fee of 0.25% of the
average daily net assets of a Portfolio attributable to its Class A or Class
B shares. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA
Distributors, LLC ("AXA Distributors"), affiliates of AXA Equitable, may
also receive distribution fees under Rule 12b-1 Plans as described above.
The class-specific expenses attributable to the investment in each share
class of the Portfolios in which the Variable Investment Options invest are
borne by the specific unit classes of the Variable Investment Options to
which the investments are attributable.
AXA Equitable Funds Management Group, LLC ("FMG LLC"), a wholly-owned
subsidiary of AXA Equitable serves as investment manager of the Portfolios
of EQAT and VIP. FMG LLC either (1) directly manages the Portfolios or
(2) contracts with and oversees the activities of the investment
sub-advisors with respect to the Portfolios and is responsible for retaining
and discontinuing the services of those sub-advisors. FMG LLC receives
management fees for services performed in its capacity as investment manager
of the Portfolios of EQAT and VIP, and pays fees to the sub-advisors for
sub-advisory services to the respective Portfolios. FMG LLC also serves as
administrator of the Portfolios of EQAT and VIP. As the administrator, FMG
LLC either (1) carries out its responsibilities directly or (2) through
sub-contracting with third-party providers. FMG LLC receives administrative
fees for services performed in its capacity as administrator of the
Portfolios of EQAT and VIP. Expenses of the Portfolios of EQAT and VIP
generally vary, depending on net asset levels for individual Portfolios, and
range from a low annual rate of 0.57% to a high of 1.45% (after waivers,
reimbursements, fees paid indirectly and including indirect expenses, as
applicable) of the average daily net assets of the Portfolios of EQAT and
VIP. Since these fees and expenses are reflected in the net asset value of
the shares of the Portfolios and the total returns of the Variable
Investment Options, they are not included in the expenses or expense ratios
of the Variable Investment Options.
AXA Equitable, AXA Advisors or AXA Distributors may directly or indirectly
receive 12b-1 fees and additional payments from certain unaffiliated
Portfolios, their advisers, sub-advisers, distributors or affiliates, for
providing certain administrative, marketing, distribution and/or shareholder
support services in connection with the Variable Investment Options'
investment in the Portfolios. These fees and payments range from 0.00% to
0.60% of the unaffiliated Portfolios' average daily net assets. AXA Advisors
or AXA Distributors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the policies and/or the advisers' respective
Portfolios.
AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor
for a number of Portfolios in EQAT and VIP including the AXA/AB Small Cap
Growth, EQ/Common Stock Index, EQ/Equity 500 Index, EQ/International Equity
Index, EQ/Large Cap Growth Index, EQ/Large Cap Value Index, EQ/Mid Cap Index
and EQ/Small Company Index, as well as a portion of AXA Large Cap Value
Managed Volatility, EQ/Quality Bond PLUS, Multimanager Aggressive Equity,
Multimanager Mid Cap Growth and Multimanager Technology. AllianceBernstein
is a limited partnership which is indirectly majority-owned by AXA Equitable
Holdings, Inc.
AXA Advisors and AXA Distributors are distributors and principal
underwriters of the Account. They are both registered with the SEC as
broker-dealers and are members of the Financial Industry Regulatory
Authority ("FINRA").
FSA-109
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
5. Expenses and Related Party Transactions (Concluded)
The Contracts are sold by financial professionals who are registered
representatives of AXA Advisors and licensed insurance agents of AXA
Network, LLC ("AXA Network") or its subsidiaries. The Contracts are also
sold through licensed insurance agencies (both affiliated and unaffiliated
with AXA Equitable) and their affiliated broker-dealers (who are registered
with the SEC and members of the FINRA) that have entered into selling
agreements with AXA Distributors. The licensed insurance agents who sell
Contracts for these companies are appointed as agents of AXA Equitable and
are registered representatives of the agencies and affiliated broker-dealer.
AXA Network receives commissions under its General Sales Agreement with AXA
Equitable and its Networking Agreement with AXA Advisors. AXA Advisors
receives service-related payments under its Supervisory and Distribution
Agreement with AXA Equitable. The financial professionals are compensated on
a commission basis by AXA Network.
AXA Equitable serves as the transfer agent for EQAT and VIP.
6. Reorganization
In October 2018, AXA Equitable replaced certain portfolios (each a
"Substituted Portfolio" and together, the "Substituted Portfolios") which
were offered for certain variable annuity contracts and/or variable life
insurance contracts with new and substantially similar portfolios (each a
"Replacement Portfolio" and together, the "Replacement Portfolios").
Correspondingly, the Variable Investment Options that invested in the
Substituted Portfolios were replaced with the Variable Investment Options
that invest in the Replacement Portfolios.
------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 AMERICAN CENTURY VP MID CAP EQ/AMERICAN CENTURY
VALUE FUND MID CAP VALUE
------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 2,588,795 2,588,795
Net Asset Value $ 20.52 $ 20.52
Net Assets Before Substitution $ 53,122,080 $ --
Net Assets After Substitution $ -- $ 53,122,080
Realized Gain $ 1,058,165
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FIDELITY(R) VIP CONTRAFUND(R) EQ/FIDELITY INSTITUTIONAL AM/SM/
PORTFOLIO LARGE CAP
------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS 2 CLASS B
Shares 3,085,057 3,085,057
Net Asset Value $ 34.69 $ 34.69
Net Assets Before Substitution $107,020,640 $ --
Net Assets After Substitution $ -- $107,020,640
Realized Gain $ 4,374,131
------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN RISING EQ/FRANKLIN RISING DIVIDENDS
DIVIDENDS VIP FUND
------------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 2,166,839 2,166,839
Net Asset Value $ 27.02 $ 27.02
Net Assets Before Substitution $ 58,544,319 $ --
Net Assets After Substitution $ -- $ 58,544,319
Realized Gain $ 2,340,403
------------------------------------------------------------------------------------------------
|
FSA-110
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 FRANKLIN STRATEGIC EQ/FRANKLIN STRATEGIC INCOME
INCOME VIP FUND
--------------------------------------------------------------------------------------------
Share Class CLASS 2 CLASS B
Shares 3,248,845 3,248,845
Net Asset Value $ 10.42 $ 10.42
Net Assets Before Substitution $ 33,858,489 $ --
Net Assets After Substitution -- $ 33,858,489
Realized Loss $ (1,778,147)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 GOLDMAN SACHS VIT MID CAP EQ/GOLDMAN SACHS MID CAP VALUE
VALUE FUND
--------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 544,224 544,224
Net Asset Value $ 16.69 $ 16.69
Net Assets Before Substitution $ 9,083,104 $ --
Net Assets After Substitution $ -- $ 9,083,104
Realized Gain $ 153,986
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. GLOBAL EQ/INVESCO GLOBAL REAL ESTATE
REAL ESTATE FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 2,388,624 2,388,624
Net Asset Value $ 15.23 $ 15.23
Net Assets Before Substitution $ 36,378,751 $ --
Net Assets After Substitution $ -- $ 36,378,751
Realized Loss $ (2,574,457)
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 INVESCO V.I. INTERNATIONAL EQ/INVESCO INTERNATIONAL GROWTH
GROWTH FUND
--------------------------------------------------------------------------------------------
Share Class SERIES II CLASS B
Shares 969,615 969,615
Net Asset Value $ 34.38 $ 34.38
Net Assets Before Substitution $ 33,335,358 $ --
Net Assets After Substitution $ -- $ 33,335,358
Realized Loss $ (1,596,562)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP ENERGY EQ/IVY ENERGY
--------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,446,697 2,446,697
Net Asset Value $ 5.72 $ 5.72
Net Assets Before Substitution $ 13,993,395 $ --
Net Assets After Substitution $ -- $ 13,993,395
Realized Loss $ (512,717)
--------------------------------------------------------------------------------------------
|
FSA-111
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Continued)
--------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP MID CAP GROWTH EQ/IVY MID CAP GROWTH
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 2,981,041 2,981,041
Net Asset Value $ 12.14 $ 12.14
Net Assets Before Substitution $ 36,195,798 $ --
Net Assets After Substitution $ -- $ 36,195,798
Realized Gain $ 4,863,881
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 IVY VIP SCIENCE AND TECHNOLOGY EQ/IVY SCIENCE AND TECHNOLOGY
--------------------------------------------------------------------------------------------------
Share Class COMMON SHARES CLASS B
Shares 1,236,407 1,236,407
Net Asset Value $ 28.96 $ 28.96
Net Assets Before Substitution $ 35,811,031 $ --
Net Assets After Substitution $ -- $ 35,811,031
Realized Gain $ 4,512,498
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 LAZARD RETIREMENT EMERGING MARKETS EQ/LAZARD EMERGING
EQUITY PORTFOLIO MARKETS EQUITY
--------------------------------------------------------------------------------------------------
Share Class SERVICE SHARES CLASS B
Shares 2,720,369 2,720,369
Net Asset Value $ 19.44 $ 19.44
Net Assets Before Substitution $ 52,883,976 $ --
Net Assets After Substitution $ -- $ 52,883,976
Realized Loss $ (3,500,104)
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) INTERNATIONAL EQ/MFS INTERNATIONAL VALUE
VALUE PORTFOLIO
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 4,131,041 4,131,041
Net Asset Value $ 25.69 $ 25.69
Net Assets Before Substitution $106,126,439 $ --
Net Assets After Substitution $ -- $106,126,439
Realized Gain $ 7,133,907
--------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 MFS(R) UTILITIES SERIES EQ/MFS UTILITIES SERIES
--------------------------------------------------------------------------------------------------
Share Class SERVICE CLASS CLASS B
Shares 80,952 80,952
Net Asset Value $ 29.84 $ 29.84
Net Assets Before Substitution $ 2,415,612 $ --
Net Assets After Substitution $ -- $ 2,415,612
Realized Gain $ 174,517
--------------------------------------------------------------------------------------------------
|
FSA-112
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
6. Reorganization (Concluded)
----------------------------------------------------------------------------------------------------------
SUBSTITUTED PORTFOLIO REPLACEMENT PORTFOLIO
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO REAL RETURN PORTFOLIO EQ/PIMCO REAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 2,076,751 2,076,751
Net Asset Value $ 11.87 $ 11.87
Net Assets Before Substitution $24,651,040 $ --
Net Assets After Substitution $ -- $24,651,040
Realized Loss $(1,438,476)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 PIMCO TOTAL RETURN PORTFOLIO EQ/PIMCO TOTAL RETURN
----------------------------------------------------------------------------------------------------------
Share Class ADVISOR CLASS CLASS B
Shares 6,300,749 6,300,749
Net Asset Value $ 10.51 $ 10.51
Net Assets Before Substitution $66,220,873 $ --
Net Assets After Substitution $ -- $66,220,873
Realized Loss $(2,751,515)
----------------------------------------------------------------------------------------------------------
OCTOBER 22, 2018 T. ROWE PRICE HEALTH SCIENCES PORTFOLIO EQ/T. ROWE PRICE HEALTH SCIENCES
----------------------------------------------------------------------------------------------------------
Share Class CLASS II CLASS B
Shares 180,949 180,949
Net Asset Value $ 45.62 $ 45.62
Net Assets Before Substitution $ 8,254,879 $ --
Net Assets After Substitution $ -- $ 8,254,879
Realized Gain $ 929,504
----------------------------------------------------------------------------------------------------------
|
In May 2017, pursuant to an Agreement and Plan of Reorganization and
Termination, as approved by contractholders, All Asset Growth-Alt 20 (the
"Surviving Portfolio") acquired the net assets of All Asset Aggressive-Alt
25 (the "Removed Portfolio"). Correspondingly, the Variable Investment
Options that invested in the Removed Portfolio (the "Removed Investment
Option") were replaced with the Variable Investment Options that invest in
the Surviving Portfolio (the "Surviving Investment Option"). For accounting
purposes, these reorganizations were treated as a merger.
-------------------------------------------------------------------------------
REMOVED PORTFOLIO SURVIVING PORTFOLIO
-------------------------------------------------------------------------------
MAY 19, 2017 ALL ASSET AGGRESSIVE-ALT 25 ALL ASSET GROWTH-ALT 20
-------------------------------------------------------------------------------
Share Class CLASS B CLASS B
Shares 496,159 1,323,456
Net Asset Value $ 12.58 $ 20.09
Net Assets Before Merger $6,242,639 $20,339,358
Net Assets After Merger $ -- $26,581,997
Unrealized Loss $ 347,214
-------------------------------------------------------------------------------
|
FSA-113
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges
The table below lists the charges for each product. These charges are
reflected as "Asset-based Charges" in the Statement of Operations or as part
of "Contractowners Transactions" in the Statement of Changes in Net Assets.
MORTALITY AND
EXPENSE RISKS MORTALITY ADMINISTRATIVE TOTAL
------------- --------- -------------- ------
Accumulator Life............................................ varies/(b)(d)/ varies/(b)/ varies/(b)(f)/ varies
Incentive Life, Champion 2000............................... 0.60%/(a)/ -- -- 0.60%
Incentive Life 2000, Incentive Life 1999, Incentive Life
Plus...................................................... 0.60%/(l)(n)/ -- -- 0.60%
Incentive Life '02.......................................... varies/(b)(g)/ -- -- 0.80%
Incentive Life '06.......................................... 0.85%/(b)(e)/ -- -- 0.85%
Survivorship Incentive Life '02............................. 0.90%/(b)(m)/ -- -- 0.90%
Paramount Life.............................................. 0.60%/(a)/ -- -- 0.60%
Incentive Life Plus Original Series......................... 0.60%/(b)(l)/ -- -- 0.60%
Incentive Life COLI......................................... 0.60%/(b)/ -- -- 0.60%
Incentive Life COLI '04..................................... 0.75%/(b)(c)/ -- -- 0.75%
Survivorship Incentive Life 1999............................ 0.60%/(a)/ -- -- 0.60%
Survivorship 2000........................................... 0.90%/(a)/ -- -- 0.90%
IL Legacy................................................... 1.75%/(b)(h)/ -- -- 1.75%
IL Legacy II................................................ 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Legacy III............................................... 0.85%/(b)(i)(l)/ -- -- 0.85%
IL Protector................................................ 0.80%/(a)/ -- -- 0.80%
SP-Flex..................................................... 0.85%/(a)/ 0.60%/(a)/ 0.35%/(a)/ 1.80%
Incentive Life(R) Optimizer................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer II................................. 0.85%/(b)(e)(l)/ -- -- 0.85%
Incentive Life Optimizer III................................ 0.60%/(b)(l)(o)/ -- -- 0.60%
Survivorship Incentive Life(R) Legacy....................... 0.55%/(b)(j)/ -- -- 0.55%
Corporate Owned Incentive Life(R)........................... 0.35%/(b)(k)(l)/ -- -- 0.35%
|
(a)Charged to daily net assets of the Account.
(b)Charged to Contractowners Account and is included in Transfer for contract
benefits and terminations in the Statements of Changes in Net Assets.
(c)Policy years 1-5 0.75% (1.00% maximum) Policy years 6-20 0.55% (0.75%
maximum) Policy years 21+ 0.35% (0.50% maximum)
(d)Varies by age, sex, class. The highest current charge is 1.21%. Policy
years 1-10 0.71% to 1.46% maximum Policy years 11+ 0.30% to 0.50% maximum
(e)Policy years 1-8 0.85% (1.00% maximum) Policy years 9-10 0.00% (1.00%
maximum) Policy years 11+ 0.00% (0.50% maximum)
(f)Policy years 1-10 0.72% to 1.73% Policy years 11+ 0.11% to 0.32%
(g)Policy years 1-15 0.80%, 0.70% or 0.60% depending (0.80% maximum) Policy
years 16+ 0.30% or 0.20% depending (0.50% maximum)
(h)Policy years 1-10 1.75% (maximum and current) Policy years 11-20 0.25%
(0.50% maximum) Policy Years 21+ 0.00% (0.50% maximum)
(i)Policy years 1-15 0.85% (maximum and current) Policy years 16+ 0.00%
(0.85% maximum) For policies with the ENLG rider, there is an additional
charge of 0.15% deducted while the rider is in effect.
(j)Policy years 1-15 0.55% (maximum and current) Policy years 16+ 0.05%
(0.55% maximum) For policies with the ENLG rider, there is an additional
charge of 0.70% deducted until age 100 of the younger insured.
(k)Policy years 1-10 0.15% (0.50% maximum); however, 0.35% (0.50% maximum) of
any account value allocated to MSO segments. Policy years 11+ 0.10% (0.35%
maximum)
(l)For policies with MSO, there is an additional charge of 1.40% (2.40%
maximum) of any policy account value allocated to each segment.
(m)Policy year 1-15 0.90% (maximum and current) Policy year 16+ 0.60% or
0.30% depending (0.90% maximum)
(n)Charged to daily net assets of the Account for all investment options
except MSO. However, for any account value allocated to MSO segments, the
M & E is charged to Contract owners Account.
(o)Policy years 1-8 0.60% (current) Policy years 1-10 1.00% (maximum) Policy
years 9+ 0.00% (current) Policy years 11+ 0.50% (maximum)
The Accumulator Life Program utilizes two insurance products -- a single
premium fixed annuity contract and a flexible premium variable life
insurance policy. The Program is designed to provide a simple method to
purchase a variable life insurance policy with a single purchase payment.
The Accumulator Life mortality and expense guaranteed risk charges are 0.71%
to 1.46% in years 1 to 10 and 0.30% to 0.50% in years 11 and beyond. The
current mortality and expense risk charges are lower than the guaranteed
charges. The highest current charge is 1.21%. Beginning in year 11, the
current rates are scheduled to decrease further. As Accumulator Life was
first offered in
FSA-114
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Continued)
2004, future decreases have not yet taken effect. The Accumulator Life
guaranteed administrative charges vary in years 1 to 10 from 0.72% to 1.73%
of the Policy Account Value, depending on age, sex, and class. The current
and guaranteed basis charges are equal. Beginning in policy year 11 the
administrative rates are guaranteed to decrease. The Accumulator Life
current cost of insurance charges vary in years 1 to 10 from 1.27% to 2.42%
of the greater of (1) the Policy Account Value and (2) the Mortality Charge
Base (accumulation of the 7-pay premiums due, up to that time at 4%),
depending on the age, sex, and class. Beginning in policy year 11 the
current cost of insurance charges decrease on a current basis. The cost of
insurance charge is capped at the guaranteed cost of insurance rate times
the Net Amount of Risk.
The Incentive Life '02 mortality and expense risk charge of 0.80%, 0.70% or
0.60% will be in effect for the first 15 policy years depending upon the
value of the Contractowner's Variable Investment Options. For policy years
16 and later the charge is currently 0.30% or 0.20%, depending upon the
value of the Contractowner's Variable Investment Options. The Survivorship
Incentive Life '02 mortality and expense risk charge of 0.90% will be in
effect for the first 15 policy years. For policy years 16 and later the
charge is currently 0.60% and 0.30% depending upon the value of the
Contractowner's Variable Investment Options. The current mortality and
expense risk charges are lower than guaranteed charges.
The Incentive Life Legacy mortality and expense risk charge of 1.75% will be
in effect for the first ten policy years on a current and guaranteed basis.
For policy years 11-20, the charge is currently 0.25% and for policy years
21 and later, it is 0.00%. In policy years 11 and later the current
mortality and expense risk charges are lower than guaranteed charges.
The Incentive Life '06, Incentive Life(R) Optimizer and Incentive Life
Optimizer II mortality and expense risk charge of 0.85% will be in effect
for the first eight policy years on a current basis. For policy years 9 and
later, no charge is deducted on a current basis. The current mortality and
expense risk charges are lower than the guaranteed charges.
The Incentive Life Optimizer III mortality and expense risk charge of 0.60%
will be in effect for the first eight policy years on a current basis. For
policy years 9 and later, no charge is deducted on a current basis. The
current mortality and expense risk charges are lower than the guaranteed
charges.
The Incentive Life Legacy II and Incentive Life Legacy III mortality and
expense risk charge of 0.85% will be in effect for the first fifteen policy
years on a current basis. For policy years 16 and later, no charge is
deducted on a current basis. The current mortality and expense risk charges
for policy years 16 and later are lower than the guaranteed charges.
The Survivorship Incentive Life(R) Legacy mortality and expense risk charge
of 0.55% will be in effect for the first fifteen policy years. For policy
years sixteen and later the charge is currently 0.05%. The current mortality
and expense risk charges are lower than the guaranteed charges. For policies
with the ENLG rider, there is an additional charge of 0.70% deducted until
age 100 of the younger insured.
The Corporate Owned Incentive Life(R) mortality and expense risk charge of
0.15% (0.35% of any account value allocated to MSO segments) will be in
effect for the first ten policy years on a current basis. For policy years
11 and later, the charge will be 0.10% on a current basis. The current
mortality and expense risk charges are lower than the guaranteed charges.
For IL 2000, IL Plus, IL Plus Original Series, IL 99, IL Optimizer, IL
Optimizer II, IL Legacy II, IL Legacy III, IL Optimizer III and Corporate
Owned Incentive Life(R) policies, there is an additional charge of 1.40% of
any policy account value allocated to each segment of the Market Stabilizer
Option on a current basis. The current percentage charge for MSO is lower
than the guaranteed charge.
Before amounts are remitted to the Account for Incentive Life, IL Plus
Original Series, IL Protector, Incentive Life Plus, Incentive Life COLI,
Incentive Life COLI '04, Corporate Owned Incentive Life, and the Series 2000
Policies, AXA Equitable deducts a charge for taxes and either an initial
policy fee (Incentive Life) or a premium charge (Incentive Life Plus,
Survivorship Incentive Life 1999, Survivorship Incentive Life '02, Incentive
Life 1999, Incentive Life '02, Incentive Life '06, Incentive Life Legacy,
Paramount Life, IL Protector, Incentive Life COLI '04, IL Optimizer, IL
Optimizer II, SIL Legacy, IL Legacy II, IL Legacy III, Corporate Owned
Incentive Life, and Series 2000 Policies) from premiums.
Under SP-Flex, the entire initial premium is allocated to the Account.
Before any additional premiums under SP-Flex are allocated to the Account,
however, an administrative charge is deducted.
FSA-115
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
7. Asset-based Charges and Contractowner Charges (Concluded)
Contractowners' accounts are assessed monthly by AXA Equitable for mortality
cost of insurance and optional rider benefit charges and administrative
charges. SP-Flex mortality and expense and administrative charges are
deducted daily. These charges are withdrawn from the Accounts along with
amounts for additional benefits and are included in Transfers for contract
benefits and terminations and Contract maintenance charges. Policy loans are
reported in the Statements of Changes in Net Assets, in Transfers between
Variable Investment Options including guaranteed interest account, net.
Surrenders are included in the Transfers for contract benefits and
terminations.
The table below lists all the fees charged by the Separate Account assessed
as a redemption of units (except for those deducted from premium as noted);
the range presented represents the fees that are actually assessed. Actual
amounts may vary or may be zero depending on the Contract, election of
riders, or Contractowner's account value. These charges are reflected as
part of "Contractowners Transactions" in the Statement of Changes in Net
Assets.
WHEN CHARGE
CHARGES IS DEDUCTED AMOUNT DEDUCTED HOW DEDUCTED
------- ----------- --------------- ------------
Riders Monthly Amount varies depending on the Unit liquidation from
specifics of your policy. Depending on account value
the rider, may be additional charges
deducted from premiums and upon
exercise of a policy continuation
benefit.
Death Benefit Guarantee (Guaranteed Monthly LOW - $0.01 for each $1,000 of face Unit liquidation from
Minimum Death Benefit Charge) amount of the policy account value
HIGH - $0.02 for each $1,000 of face
amount of the policy
Charge for State and Local Tax Expense At time of premium Varies by state of residence of insured Deducted from premium
payment person.
Charge for Federal Tax Expenses At time of premium 1.25% Deducted from premium
payment
Premium Charge At time of premium Depending on the policy, varies from a Deducted from premium
payment flat fee of $2 to $250 to a range of
2.25% to 30% of premiums
Monthly administrative charges Monthly LOW - $8 per month Unit liquidation from
HIGH - Depending on face amount, account value
policyholder age at issue and policy
year, up to $55 per month. Depending on
the policy, may also be a charge per
$1,000 of face amount ranging from
$0.03 to $0.70
Cost of Insurance (COI) and Rating Monthly Amount varies depending upon specifics Unit liquidation from
charge of policy. COI based upon amount at account value
risk. Rating Charge based upon face
amount of insurance.
Surrender, termination or decrease in At time of transaction The amount of surrender charges if Unit liquidation from
face amount of policy during the first applicable is set forth in your policy. account value
10 or 15 years depending on Contract
Partial Withdrawal At time of transaction $25 (or if less, 2% of the withdrawal), Unit liquidation from
if applicable account value
Increase in policy's face amount At time of transaction $1.50 for each $1,000 of the increase Unit liquidation from
(but not more than $250 in total), if account value
applicable
Administrative Surrender Charge At time of transaction $2 to $6 per 1,000 depending on issue Unit liquidation from
age which after the third year declines account value
if applicable Depending on the policy,
may also be a charge per policy ranging
from $450 to $540 which after the third
year declines
Transfers among investment options At time of transaction LOW - $25 after 12 transfers if Unit liquidation from
applicable account value
HIGH - $25 per transfer
|
FSA-116
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights
The ranges for the total return ratios and unit values correspond to the
product groupings that produced the lowest and highest expense ratios. The
lowest and the highest contract charge represents the annual contract
expenses consisting of mortality, expense risk, financial accounting and
other expenses, for each period indicated. This ratio includes only those
expenses that result in direct reduction to unit value. Charges made
directly to Contractowner account through the redemption of units and
expenses of the respective Portfolio have been excluded. The summary may not
reflect the minimum and maximum contract charges offered by the Company as
Contractowners may not have selected all available and applicable contract
options. Due to the timing of the introduction of new products into the
Variable Account, contract charges and related unit values and total returns
may fall outside of the ranges presented in the financial highlights.
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT CONVERTIBLE SECURITIES
2018 Lowest contract charge 0.00% Class B $ 12.19 -- -- -- (4.24)%
Highest contract charge 0.60% Class B $119.95 -- -- -- (4.83)%
All contract charges -- 21 $ 1,204 3.16% --
2017 Lowest contract charge 0.00% Class B $ 12.73 -- -- -- 14.27%
Highest contract charge 0.60% Class B $126.04 -- -- -- 13.59%
All contract charges -- 6 $ 605 9.59% --
2016 Lowest contract charge 0.00% Class B(c) $ 11.14 -- -- -- 10.08%
Highest contract charge 0.60% Class B(c) $110.96 -- -- -- 9.68%
All contract charges -- -- $ 9 9.66% --
1290 VT DOUBLELINE DYNAMIC ALLOCATION
2018 Lowest contract charge 0.00% Class B $118.12 -- -- -- (4.12)%
Highest contract charge 0.90% Class B $112.24 -- -- -- (4.99)%
All contract charges -- 179 $10,754 1.55% --
2017 Lowest contract charge 0.00% Class B $123.19 -- -- -- 9.61%
Highest contract charge 0.90% Class B $118.13 -- -- -- 8.64%
All contract charges -- 258 $12,307 0.61% --
2016 Lowest contract charge 0.00% Class B $112.39 -- -- -- 8.61%
Highest contract charge 0.90% Class B $108.74 -- -- -- 7.63%
All contract charges -- 190 $ 9,492 1.68% --
2015 Lowest contract charge 0.00% Class B $103.48 -- -- -- (3.72)%
Highest contract charge 0.90% Class B $101.03 -- -- -- (4.60)%
All contract charges -- 134 $ 5,897 1.31% --
2014 Lowest contract charge 0.00% Class B $107.48 -- -- -- 2.42%
Highest contract charge 0.90% Class B $105.90 -- -- -- 1.50%
All contract charges -- 28 $ 2,538 2.43% --
1290 VT DOUBLELINE OPPORTUNISTIC BOND
2018 Lowest contract charge 0.00% Class B(d) $101.17 -- -- -- (0.94)%
Highest contract charge 0.60% Class B(d) $100.17 -- -- -- (1.53)%
All contract charges -- 13 $ 607 3.81% --
2017 Lowest contract charge 0.00% Class B(d) $102.13 -- -- -- 1.58%
Highest contract charge 0.60% Class B(d) $101.73 -- -- -- 1.20%
All contract charges -- 3 $ 200 3.42% --
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class A $165.68 -- -- -- (11.69)%
Highest contract charge 0.90% Class A $149.05 -- -- -- (12.49)%
All contract charges -- 28 $ 4,388 2.01% --
2017 Lowest contract charge 0.00% Class A $187.61 -- -- -- 15.84%
Highest contract charge 0.90% Class A $170.32 -- -- -- 14.80%
All contract charges -- 32 $ 5,633 1.70% --
2016 Lowest contract charge 0.00% Class A $161.95 -- -- -- 12.98%
Highest contract charge 0.90% Class A $148.36 -- -- -- 11.97%
All contract charges -- 31 $ 4,827 1.96% --
2015 Lowest contract charge 0.00% Class A $143.34 -- -- -- (1.70)%
Highest contract charge 0.90% Class A $132.50 -- -- -- (2.59)%
All contract charges -- 33 $ 4,517 1.55% --
2014 Lowest contract charge 0.00% Class A $145.82 -- -- -- 8.67%
Highest contract charge 0.90% Class A $136.02 -- -- -- 7.70%
All contract charges -- 37 $ 5,222 1.56% --
|
FSA-117
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT EQUITY INCOME
2018 Lowest contract charge 0.00% Class B $228.29 -- -- -- (11.69)%
Highest contract charge 0.60% Class B $152.60 -- -- -- (12.22)%
All contract charges -- 70 $14,898 2.01% --
2017 Lowest contract charge 0.00% Class B $258.51 -- -- -- 15.84%
Highest contract charge 0.60% Class B $173.85 -- -- -- 15.15%
All contract charges -- 71 $17,017 1.70% --
2016 Lowest contract charge 0.00% Class B $223.16 -- -- -- 12.99%
Highest contract charge 0.60% Class B $150.98 -- -- -- 12.30%
All contract charges -- 73 $15,213 1.96% --
2015 Lowest contract charge 0.00% Class B $197.51 -- -- -- (1.70)%
Highest contract charge 0.60% Class B $134.44 -- -- -- (2.29)%
All contract charges -- 79 $14,262 1.55% --
2014 Lowest contract charge 0.00% Class B $200.93 -- -- -- 8.67%
Highest contract charge 0.60% Class B $137.59 -- -- -- 8.02%
All contract charges -- 82 $15,156 1.56% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
Highest contract charge 0.00% Class A $141.81 -- -- -- (4.91)%
All contract charges -- 29 $ 712 1.48% --
2017 Lowest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
Highest contract charge 0.00% Class A $149.14 -- -- -- 6.19%
All contract charges -- 44 $ 988 0.17% --
2016 Lowest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
Highest contract charge 0.00% Class A $140.45 -- -- -- 7.69%
All contract charges -- 18 $ 746 0.01% --
2015 Lowest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
Highest contract charge 0.00% Class A $130.42 -- -- -- 2.63%
All contract charges -- 21 $ 699 0.00% --
2014 Lowest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
Highest contract charge 0.00% Class A $127.08 -- -- -- 1.64%
All contract charges -- 17 $ 633 0.00% --
1290 VT GAMCO MERGERS & ACQUISITIONS
2018 Lowest contract charge 0.00% Class B $181.95 -- -- -- (4.91)%
Highest contract charge 0.90% Class B $131.24 -- -- -- (5.77)%
All contract charges -- 91 $14,377 1.48% --
2017 Lowest contract charge 0.00% Class B $191.34 -- -- -- 6.18%
Highest contract charge 0.90% Class B $139.27 -- -- -- 5.23%
All contract charges -- 93 $15,203 0.17% --
2016 Lowest contract charge 0.00% Class B $180.20 -- -- -- 7.69%
Highest contract charge 0.90% Class B $132.35 -- -- -- 6.73%
All contract charges -- 92 $14,108 0.01% --
2015 Lowest contract charge 0.00% Class B $167.33 -- -- -- 2.62%
Highest contract charge 0.90% Class B $124.01 -- -- -- 1.70%
All contract charges -- 96 $13,717 0.00% --
2014 Lowest contract charge 0.00% Class B $163.06 -- -- -- 1.64%
Highest contract charge 0.90% Class B $121.94 -- -- -- 0.73%
All contract charges -- 96 $13,401 0.00% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
Highest contract charge 0.00% Class A $211.48 -- -- -- (15.58)%
All contract charges -- 265 $ 7,034 0.55% --
2017 Lowest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
Highest contract charge 0.00% Class A $250.51 -- -- -- 16.10%
All contract charges -- 196 $ 6,619 0.62% --
|
FSA-118
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT GAMCO SMALL COMPANY VALUE (CONTINUED)
2016 Lowest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
Highest contract charge 0.00% Class A $215.78 -- -- -- 23.27%
All contract charges -- 177 $ 6,106 0.51% --
2015 Lowest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
Highest contract charge 0.00% Class A $175.04 -- -- -- (5.70)%
All contract charges -- 156 $ 4,668 0.53% --
2014 Lowest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
Highest contract charge 0.00% Class A $185.62 -- -- -- 3.07%
All contract charges -- 105 $ 4,528 0.28% --
1290 VT GAMCO SMALL COMPANY VALUE
2018 Lowest contract charge 0.00% Class B $371.93 -- -- -- (15.58)%
Highest contract charge 0.90% Class B $218.55 -- -- -- (16.34)%
All contract charges -- 511 $155,857 0.55% --
2017 Lowest contract charge 0.00% Class B $440.57 -- -- -- 16.10%
Highest contract charge 0.90% Class B $261.25 -- -- -- 15.05%
All contract charges -- 532 $191,106 0.62% --
2016 Lowest contract charge 0.00% Class B $379.49 -- -- -- 23.27%
Highest contract charge 0.90% Class B $227.07 -- -- -- 22.17%
All contract charges -- 542 $166,766 0.51% --
2015 Lowest contract charge 0.00% Class B $307.85 -- -- -- (5.70)%
Highest contract charge 0.90% Class B $185.87 -- -- -- (6.55)%
All contract charges -- 566 $139,280 0.53% --
2014 Lowest contract charge 0.00% Class B $326.46 -- -- -- 3.07%
Highest contract charge 0.90% Class B $198.90 -- -- -- 2.14%
All contract charges -- 591 $151,989 0.28% --
1290 VT SMARTBETA EQUITY
2018 Lowest contract charge 0.00% Class B $ 11.84 -- -- -- (6.11)%
Highest contract charge 0.60% Class B $116.52 -- -- -- (6.66)%
All contract charges -- 63 $ 1,273 1.63% --
2017 Lowest contract charge 0.00% Class B $ 12.61 -- -- -- 21.72%
Highest contract charge 0.60% Class B $124.83 -- -- -- 20.99%
All contract charges -- 21 $ 598 1.84% --
2016 Lowest contract charge 0.00% Class B(c) $ 10.36 -- -- -- 3.81%
Highest contract charge 0.60% Class B(c) $103.17 -- -- -- 3.41%
All contract charges -- 13 $ 181 2.62% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
Highest contract charge 0.00% Class A $327.79 -- -- -- (4.37)%
All contract charges -- 1 $ 273 0.98% --
2017 Lowest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
Highest contract charge 0.00% Class A $342.77 -- -- -- 20.40%
All contract charges -- 1 $ 308 1.04% --
2016 Lowest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
Highest contract charge 0.00% Class A $284.69 -- -- -- 9.96%
All contract charges -- 1 $ 201 1.28% --
2015 Lowest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
Highest contract charge 0.00% Class A $258.91 -- -- -- 0.47%
All contract charges -- 1 $ 216 1.07% --
2014 Lowest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
Highest contract charge 0.00% Class A $257.71 -- -- -- 13.61%
All contract charges -- 1 $ 177 0.84% --
1290 VT SOCIALLY RESPONSIBLE
2018 Lowest contract charge 0.00% Class B $205.36 -- -- -- (4.37)%
Highest contract charge 0.90% Class B $172.35 -- -- -- (5.23)%
All contract charges -- 12 $ 2,364 0.98% --
|
FSA-119
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
1290 VT SOCIALLY RESPONSIBLE (CONTINUED)
2017 Lowest contract charge 0.00% Class B $214.75 -- -- -- 20.40%
Highest contract charge 0.90% Class B $181.87 -- -- -- 19.32%
All contract charges -- 16 $ 3,042 1.04% --
2016 Lowest contract charge 0.00% Class B $178.36 -- -- -- 9.96%
Highest contract charge 0.90% Class B $152.42 -- -- -- 8.96%
All contract charges -- 14 $ 2,297 1.28% --
2015 Lowest contract charge 0.00% Class B $162.21 -- -- -- 0.48%
Highest contract charge 0.90% Class B $139.88 -- -- -- (0.43)%
All contract charges -- 11 $ 1,624 1.07% --
2014 Lowest contract charge 0.00% Class B $161.44 -- -- -- 13.61%
Highest contract charge 0.80% Class B $142.67 -- -- -- 12.70%
All contract charges -- 9 $ 1,403 0.84% --
ALL ASSET GROWTH-ALT 20(E)
2018 Lowest contract charge 0.00% Class B $153.87 -- -- -- (7.56)%
Highest contract charge 0.90% Class B $142.24 -- -- -- (8.39)%
All contract charges -- 270 $29,859 1.97% --
2017 Lowest contract charge 0.00% Class B $166.45 -- -- -- 15.90%
Highest contract charge 0.90% Class B $155.27 -- -- -- 14.85%
All contract charges -- 251 $28,921 1.62% --
2016 Lowest contract charge 0.00% Class B $143.62 -- -- -- 9.57%
Highest contract charge 0.90% Class B $135.19 -- -- -- 8.58%
All contract charges -- 158 $19,692 1.36% --
2015 Lowest contract charge 0.00% Class B $131.08 -- -- -- (3.96)%
Highest contract charge 0.90% Class B $124.51 -- -- -- (4.82)%
All contract charges -- 136 $17,513 0.84% --
2014 Lowest contract charge 0.00% Class B $136.49 -- -- -- 2.39%
Highest contract charge 0.90% Class B $130.82 -- -- -- 1.47%
All contract charges -- 131 $17,621 1.53% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /GLOBAL
SMALL CAPITALIZATION FUND/SM /
2018 Lowest contract charge 0.00% Class 4 $130.88 -- -- -- (10.81)%
Highest contract charge 0.90% Class 4 $124.37 -- -- -- (11.61)%
All contract charges -- 115 $ 8,267 0.02% --
2017 Lowest contract charge 0.00% Class 4 $146.74 -- -- -- 25.62%
Highest contract charge 0.90% Class 4 $140.71 -- -- -- 24.50%
All contract charges -- 69 $ 7,356 0.38% --
2016 Lowest contract charge 0.00% Class 4 $116.81 -- -- -- 1.85%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.93%
All contract charges -- 47 $ 4,107 0.11% --
2015 Lowest contract charge 0.00% Class 4 $114.69 -- -- -- (0.02)%
Highest contract charge 0.90% Class 4 $111.98 -- -- -- (0.92)%
All contract charges -- 43 $ 3,590 0.00% --
2014 Lowest contract charge 0.00% Class 4 $114.71 -- -- -- 1.88%
Highest contract charge 0.90% Class 4 $113.02 -- -- -- 0.96%
All contract charges -- 25 $ 1,829 0.08% --
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /
2018 Lowest contract charge 0.00% Class 4 $110.32 -- -- -- (14.25)%
Highest contract charge 0.90% Class 4 $104.83 -- -- -- (15.03)%
All contract charges -- 404 $19,113 0.82% --
2017 Lowest contract charge 0.00% Class 4 $128.66 -- -- -- 29.06%
Highest contract charge 0.90% Class 4 $123.37 -- -- -- 27.90%
All contract charges -- 222 $12,711 0.87% --
2016 Lowest contract charge 0.00% Class 4 $ 99.69 -- -- -- 5.05%
Highest contract charge 0.90% Class 4 $ 96.46 -- -- -- 4.10%
All contract charges -- 172 $ 7,858 0.69% --
|
FSA-120
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AMERICAN FUNDS INSURANCE SERIES(R)/ /NEW
WORLD FUND(R)/ /(CONTINUED)
2015 Lowest contract charge 0.00% Class 4 $ 94.90 -- -- -- (3.38)%
Highest contract charge 0.90% Class 4 $ 92.66 -- -- -- (4.24)%
All contract charges -- 139 $ 6,032 0.57% --
2014 Lowest contract charge 0.00% Class 4 $ 98.22 -- -- -- (8.13)%
Highest contract charge 0.90% Class 4 $ 96.76 -- -- -- (8.97)%
All contract charges -- 88 $ 3,904 1.51% --
AXA 400 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $191.95 -- -- -- (12.27)%
Highest contract charge 0.90% Class B $177.44 -- -- -- (13.06)%
All contract charges -- 23 $ 4,405 0.93% --
2017 Lowest contract charge 0.00% Class B $218.79 -- -- -- 15.23%
Highest contract charge 0.90% Class B $204.10 -- -- -- 14.19%
All contract charges -- 25 $ 5,413 0.80% --
2016 Lowest contract charge 0.00% Class B $189.88 -- -- -- 19.68%
Highest contract charge 0.90% Class B $178.74 -- -- -- 18.61%
All contract charges -- 23 $ 4,246 0.87% --
2015 Lowest contract charge 0.00% Class B $158.65 -- -- -- (3.11)%
Highest contract charge 0.90% Class B $150.69 -- -- -- (3.98)%
All contract charges -- 20 $ 3,160 0.54% --
2014 Lowest contract charge 0.00% Class B $163.75 -- -- -- 8.80%
Highest contract charge 0.90% Class B $156.94 -- -- -- 7.82%
All contract charges -- 19 $ 3,065 0.39% --
AXA 500 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.17 -- -- -- (6.06)%
Highest contract charge 0.90% Class B $197.98 -- -- -- (6.91)%
All contract charges -- 49 $10,225 1.16% --
2017 Lowest contract charge 0.00% Class B $227.98 -- -- -- 20.75%
Highest contract charge 0.90% Class B $212.68 -- -- -- 19.67%
All contract charges -- 43 $ 9,743 1.24% --
2016 Lowest contract charge 0.00% Class B $188.80 -- -- -- 11.03%
Highest contract charge 0.90% Class B $177.72 -- -- -- 10.03%
All contract charges -- 37 $ 6,887 1.27% --
2015 Lowest contract charge 0.00% Class B $170.05 -- -- -- 0.37%
Highest contract charge 0.90% Class B $161.52 -- -- -- (0.54)%
All contract charges -- 34 $ 5,680 0.91% --
2014 Lowest contract charge 0.00% Class B $169.43 -- -- -- 12.59%
Highest contract charge 0.90% Class B $162.40 -- -- -- 11.58%
All contract charges -- 33 $ 5,576 0.80% --
AXA 2000 MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $179.09 -- -- -- (11.92)%
Highest contract charge 0.90% Class B $165.56 -- -- -- (12.71)%
All contract charges -- 24 $ 4,137 0.77% --
2017 Lowest contract charge 0.00% Class B $203.32 -- -- -- 13.85%
Highest contract charge 0.90% Class B $189.67 -- -- -- 12.84%
All contract charges -- 23 $ 4,480 0.78% --
2016 Lowest contract charge 0.00% Class B $178.58 -- -- -- 20.53%
Highest contract charge 0.90% Class B $168.09 -- -- -- 19.44%
All contract charges -- 18 $ 3,289 0.82% --
2015 Lowest contract charge 0.00% Class B $148.16 -- -- -- (5.10)%
Highest contract charge 0.90% Class B $140.73 -- -- -- (5.95)%
All contract charges -- 15 $ 2,284 0.39% --
2014 Lowest contract charge 0.00% Class B $156.13 -- -- -- 4.06%
Highest contract charge 0.90% Class B $149.64 -- -- -- 3.11%
All contract charges -- 17 $ 2,546 0.16% --
|
FSA-121
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $240.35 -- -- -- (8.72)%
Highest contract charge 0.90% Class A $209.40 -- -- -- (9.54)%
All contract charges -- 310 $56,672 1.56% --
2017 Lowest contract charge 0.00% Class A $263.30 -- -- -- 19.10%
Highest contract charge 0.90% Class A $231.49 -- -- -- 18.03%
All contract charges -- 302 $63,917 1.51% --
2016 Lowest contract charge 0.00% Class A $221.08 -- -- -- 8.79%
Highest contract charge 0.90% Class A $196.13 -- -- -- 7.81%
All contract charges -- 306 $56,824 0.94% --
2015 Lowest contract charge 0.00% Class A $203.22 -- -- -- (1.75)%
Highest contract charge 0.90% Class A $181.92 -- -- -- (2.64)%
All contract charges -- 344 $57,423 0.95% --
2014 Lowest contract charge 0.00% Class A $206.85 -- -- -- 4.72%
Highest contract charge 0.90% Class A $186.85 -- -- -- 3.78%
All contract charges -- 344 $63,147 1.55% --
AXA AGGRESSIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $235.46 -- -- -- (8.72)%
Highest contract charge 0.60% Class B $214.81 -- -- -- (9.27)%
All contract charges -- 340 $79,240 1.56% --
2017 Lowest contract charge 0.00% Class B $257.94 -- -- -- 19.10%
Highest contract charge 0.60% Class B $236.75 -- -- -- 18.39%
All contract charges -- 362 $92,369 1.51% --
2016 Lowest contract charge 0.00% Class B $216.58 -- -- -- 8.78%
Highest contract charge 0.60% Class B $199.98 -- -- -- 8.13%
All contract charges -- 373 $79,996 0.94% --
2015 Lowest contract charge 0.00% Class B $199.09 -- -- -- (1.75)%
Highest contract charge 0.60% Class B $184.94 -- -- -- (2.34)%
All contract charges -- 392 $77,349 0.95% --
2014 Lowest contract charge 0.00% Class B $202.64 -- -- -- 4.72%
Highest contract charge 0.60% Class B $189.38 -- -- -- 4.09%
All contract charges -- 396 $79,584 1.55% --
AXA BALANCED STRATEGY
2018 Lowest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
Highest contract charge 0.00% Class B $156.00 -- -- -- (4.18)%
All contract charges -- 246 $38,340 1.27% --
2017 Lowest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
Highest contract charge 0.00% Class B $162.81 -- -- -- 9.85%
All contract charges -- 225 $36,558 1.43% --
2016 Lowest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
Highest contract charge 0.00% Class B $148.21 -- -- -- 5.98%
All contract charges -- 188 $27,793 0.89% --
2015 Lowest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
Highest contract charge 0.00% Class B $139.85 -- -- -- (0.64)%
All contract charges -- 173 $24,207 1.09% --
2014 Lowest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
Highest contract charge 0.00% Class B $140.75 -- -- -- 4.40%
All contract charges -- 141 $19,802 1.21% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class A $162.27 -- -- -- (1.57)%
Highest contract charge 0.90% Class A $141.38 -- -- -- (2.45)%
All contract charges -- 256 $19,839 1.52% --
2017 Lowest contract charge 0.00% Class A $164.85 -- -- -- 4.95%
Highest contract charge 0.90% Class A $144.93 -- -- -- 4.00%
All contract charges -- 253 $21,414 1.07% --
|
FSA-122
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE ALLOCATION (CONTINUED)
2016 Lowest contract charge 0.00% Class A $157.07 -- -- -- 2.92%
Highest contract charge 0.90% Class A $139.35 -- -- -- 2.01%
All contract charges -- 270 $22,880 0.94% --
2015 Lowest contract charge 0.00% Class A $152.61 -- -- -- (0.24)%
Highest contract charge 0.90% Class A $136.61 -- -- -- (1.14)%
All contract charges -- 284 $24,201 0.79% --
2014 Lowest contract charge 0.00% Class A $152.98 -- -- -- 2.62%
Highest contract charge 0.90% Class A $138.19 -- -- -- 1.69%
All contract charges -- 288 $25,804 0.83% --
AXA CONSERVATIVE ALLOCATION
2018 Lowest contract charge 0.00% Class B $158.96 -- -- -- (1.56)%
Highest contract charge 0.60% Class B $145.02 -- -- -- (2.16)%
All contract charges -- 47 $ 7,355 1.52% --
2017 Lowest contract charge 0.00% Class B $161.48 -- -- -- 4.95%
Highest contract charge 0.60% Class B $148.22 -- -- -- 4.32%
All contract charges -- 46 $ 7,209 1.07% --
2016 Lowest contract charge 0.00% Class B $153.87 -- -- -- 2.92%
Highest contract charge 0.60% Class B $142.08 -- -- -- 2.31%
All contract charges -- 58 $ 8,706 0.94% --
2015 Lowest contract charge 0.00% Class B $149.50 -- -- -- (0.24)%
Highest contract charge 0.60% Class B $138.87 -- -- -- (0.84)%
All contract charges -- 61 $ 8,855 0.79% --
2014 Lowest contract charge 0.00% Class B $149.86 -- -- -- 2.62%
Highest contract charge 0.60% Class B $140.05 -- -- -- 2.00%
All contract charges -- 71 $10,374 0.83% --
AXA CONSERVATIVE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
Highest contract charge 0.00% Class B $146.65 -- -- -- (3.25)%
All contract charges -- 48 $ 7,082 1.21% --
2017 Lowest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
Highest contract charge 0.00% Class B $151.58 -- -- -- 7.98%
All contract charges -- 49 $ 7,439 1.29% --
2016 Lowest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
Highest contract charge 0.00% Class B $140.38 -- -- -- 4.96%
All contract charges -- 44 $ 6,162 0.90% --
2015 Lowest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
Highest contract charge 0.00% Class B $133.74 -- -- -- (0.46)%
All contract charges -- 41 $ 5,539 0.95% --
2014 Lowest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
Highest contract charge 0.00% Class B $134.36 -- -- -- 3.82%
All contract charges -- 40 $ 5,395 1.11% --
AXA CONSERVATIVE STRATEGY
2018 Lowest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
Highest contract charge 0.00% Class B $128.64 -- -- -- (1.40)%
All contract charges -- 23 $ 2,969 1.31% --
2017 Lowest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
Highest contract charge 0.00% Class B $130.46 -- -- -- 4.27%
All contract charges -- 20 $ 2,656 1.02% --
2016 Lowest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
Highest contract charge 0.00% Class B $125.12 -- -- -- 2.83%
All contract charges -- 22 $ 2,805 0.85% --
2015 Lowest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
Highest contract charge 0.00% Class B $121.68 -- -- -- (0.17)%
All contract charges -- 20 $ 2,427 0.94% --
2014 Lowest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
Highest contract charge 0.00% Class B $121.89 -- -- -- 2.61%
All contract charges -- 16 $ 1,930 0.86% --
|
FSA-123
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $181.08 -- -- -- (3.64)%
Highest contract charge 0.90% Class A $157.76 -- -- -- (4.52)%
All contract charges -- 209 $ 16,289 1.47% --
2017 Lowest contract charge 0.00% Class A $187.93 -- -- -- 8.83%
Highest contract charge 0.90% Class A $165.22 -- -- -- 7.84%
All contract charges -- 174 $ 17,822 1.21% --
2016 Lowest contract charge 0.00% Class A $172.69 -- -- -- 4.73%
Highest contract charge 0.90% Class A $153.21 -- -- -- 3.79%
All contract charges -- 148 $ 17,374 0.90% --
2015 Lowest contract charge 0.00% Class A $164.89 -- -- -- (0.66)%
Highest contract charge 0.90% Class A $147.61 -- -- -- (1.55)%
All contract charges -- 164 $ 17,659 0.82% --
2014 Lowest contract charge 0.00% Class A $165.98 -- -- -- 3.16%
Highest contract charge 0.90% Class A $149.93 -- -- -- 2.23%
All contract charges -- 179 $ 19,858 0.99% --
AXA CONSERVATIVE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $177.40 -- -- -- (3.64)%
Highest contract charge 0.60% Class B $161.84 -- -- -- (4.23)%
All contract charges -- 77 $ 13,374 1.47% --
2017 Lowest contract charge 0.00% Class B $184.11 -- -- -- 8.82%
Highest contract charge 0.60% Class B $168.98 -- -- -- 8.17%
All contract charges -- 82 $ 14,766 1.21% --
2016 Lowest contract charge 0.00% Class B $169.18 -- -- -- 4.73%
Highest contract charge 0.60% Class B $156.22 -- -- -- 4.11%
All contract charges -- 87 $ 14,529 0.90% --
2015 Lowest contract charge 0.00% Class B $161.54 -- -- -- (0.65)%
Highest contract charge 0.60% Class B $150.06 -- -- -- (1.24)%
All contract charges -- 90 $ 14,346 0.82% --
2014 Lowest contract charge 0.00% Class B $162.60 -- -- -- 3.16%
Highest contract charge 0.60% Class B $151.95 -- -- -- 2.54%
All contract charges -- 94 $ 15,106 0.99% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
Highest contract charge 0.00% Class A $577.44 -- -- -- (12.16)%
All contract charges -- 77 $ 26,261 1.02% --
2017 Lowest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
Highest contract charge 0.00% Class A $657.37 -- -- -- 26.08%
All contract charges -- 67 $ 31,741 1.07% --
2016 Lowest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
Highest contract charge 0.00% Class A $521.38 -- -- -- 4.48%
All contract charges -- 68 $ 27,405 0.91% --
2015 Lowest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
Highest contract charge 0.00% Class A $499.04 -- -- -- (1.73)%
All contract charges -- 74 $ 28,446 0.88% --
2014 Lowest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
Highest contract charge 0.00% Class A $507.81 -- -- -- 1.69%
All contract charges -- 106 $ 31,716 0.95% --
AXA GLOBAL EQUITY MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $309.60 -- -- -- (12.16)%
Highest contract charge 0.90% Class B $255.21 -- -- -- (12.96)%
All contract charges -- 329 $ 93,820 1.02% --
2017 Lowest contract charge 0.00% Class B $352.45 -- -- -- 26.08%
Highest contract charge 0.90% Class B $293.20 -- -- -- 24.95%
All contract charges -- 359 $116,782 1.07% --
|
FSA-124
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA GLOBAL EQUITY MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $279.54 -- -- -- 4.48%
Highest contract charge 0.90% Class B $234.65 -- -- -- 3.54%
All contract charges -- 398 $102,881 0.91% --
2015 Lowest contract charge 0.00% Class B $267.56 -- -- -- (1.73)%
Highest contract charge 0.90% Class B $226.63 -- -- -- (2.61)%
All contract charges -- 441 $110,066 0.88% --
2014 Lowest contract charge 0.00% Class B $272.26 -- -- -- 1.68%
Highest contract charge 0.90% Class B $232.70 -- -- -- 0.77%
All contract charges -- 478 $121,576 0.95% --
AXA GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
Highest contract charge 0.00% Class B $176.45 -- -- -- (6.08)%
All contract charges -- 332 $ 58,504 1.22% --
2017 Lowest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
Highest contract charge 0.00% Class B $187.88 -- -- -- 13.72%
All contract charges -- 330 $ 62,041 1.57% --
2016 Lowest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
Highest contract charge 0.00% Class B $165.21 -- -- -- 8.09%
All contract charges -- 304 $ 50,167 0.98% --
2015 Lowest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
Highest contract charge 0.00% Class B $152.84 -- -- -- (0.98)%
All contract charges -- 279 $ 42,615 1.25% --
2014 Lowest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
Highest contract charge 0.00% Class B $154.35 -- -- -- 5.62%
All contract charges -- 223 $ 34,422 1.64% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $236.86 -- -- -- (14.89)%
Highest contract charge 0.60% Class A $168.13 -- -- -- (15.40)%
All contract charges -- 53 $ 12,380 1.72% --
2017 Lowest contract charge 0.00% Class A $278.29 -- -- -- 26.30%
Highest contract charge 0.60% Class A $198.73 -- -- -- 25.54%
All contract charges -- 56 $ 15,408 1.64% --
2016 Lowest contract charge 0.00% Class A $220.34 -- -- -- 0.22%
Highest contract charge 0.60% Class A $158.30 -- -- -- (0.37)%
All contract charges -- 61 $ 13,351 0.29% --
2015 Lowest contract charge 0.00% Class A $219.85 -- -- -- (4.35)%
Highest contract charge 0.60% Class A $158.89 -- -- -- (4.92)%
All contract charges -- 66 $ 14,331 0.06% --
2014 Lowest contract charge 0.00% Class A $229.84 -- -- -- (6.24)%
Highest contract charge 0.60% Class A $167.11 -- -- -- (6.80)%
All contract charges -- 71 $ 16,150 1.75% --
AXA INTERNATIONAL CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $153.51 -- -- -- (14.89)%
Highest contract charge 0.90% Class B $128.46 -- -- -- (15.66)%
All contract charges -- 271 $ 38,842 1.72% --
2017 Lowest contract charge 0.00% Class B $180.36 -- -- -- 26.31%
Highest contract charge 0.90% Class B $152.31 -- -- -- 25.17%
All contract charges -- 282 $ 47,837 1.64% --
2016 Lowest contract charge 0.00% Class B $142.79 -- -- -- 0.21%
Highest contract charge 0.90% Class B $121.68 -- -- -- (0.69)%
All contract charges -- 336 $ 45,006 0.29% --
2015 Lowest contract charge 0.00% Class B $142.49 -- -- -- (4.34)%
Highest contract charge 0.90% Class B $122.52 -- -- -- (5.21)%
All contract charges -- 345 $ 46,054 0.06% --
2014 Lowest contract charge 0.00% Class B $148.95 -- -- -- (6.24)%
Highest contract charge 0.90% Class B $129.25 -- -- -- (7.08)%
All contract charges -- 381 $ 53,327 1.75% --
|
FSA-125
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA INTERNATIONAL MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $120.70 -- -- -- (14.45)%
Highest contract charge 0.90% Class B $111.58 -- -- -- (15.22)%
All contract charges -- 29 $ 3,515 1.95% --
2017 Lowest contract charge 0.00% Class B $141.09 -- -- -- 24.25%
Highest contract charge 0.90% Class B $131.61 -- -- -- 23.13%
All contract charges -- 25 $ 3,558 2.29% --
2016 Lowest contract charge 0.00% Class B $113.55 -- -- -- (0.12)%
Highest contract charge 0.90% Class B $106.89 -- -- -- (1.01)%
All contract charges -- 21 $ 2,386 1.26% --
2015 Lowest contract charge 0.00% Class B $113.69 -- -- -- (2.40)%
Highest contract charge 0.90% Class B $107.98 -- -- -- (3.29)%
All contract charges -- 17 $ 1,908 0.04% --
2014 Lowest contract charge 0.00% Class B $116.49 -- -- -- (6.44)%
Highest contract charge 0.90% Class B $111.65 -- -- -- (7.28)%
All contract charges -- 15 $ 1,627 0.79% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $223.17 -- -- -- (16.49)%
Highest contract charge 0.60% Class A $156.54 -- -- -- (16.99)%
All contract charges -- 99 $14,835 1.72% --
2017 Lowest contract charge 0.00% Class A $267.24 -- -- -- 23.37%
Highest contract charge 0.60% Class A $188.59 -- -- -- 22.64%
All contract charges -- 102 $18,250 1.90% --
2016 Lowest contract charge 0.00% Class A $216.61 -- -- -- 0.74%
Highest contract charge 0.60% Class A $153.78 -- -- -- 0.14%
All contract charges -- 102 $15,640 0.47% --
2015 Lowest contract charge 0.00% Class A $215.01 -- -- -- (3.16)%
Highest contract charge 0.60% Class A $153.56 -- -- -- (3.74)%
All contract charges -- 105 $16,190 0.10% --
2014 Lowest contract charge 0.00% Class A $222.03 -- -- -- (7.18)%
Highest contract charge 0.60% Class A $159.53 -- -- -- (7.74)%
All contract charges -- 108 $17,611 1.58% --
AXA INTERNATIONAL VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $163.14 -- -- -- (16.49)%
Highest contract charge 0.90% Class B $150.30 -- -- -- (17.24)%
All contract charges -- 325 $52,099 1.72% --
2017 Lowest contract charge 0.00% Class B $195.36 -- -- -- 23.37%
Highest contract charge 0.90% Class B $181.62 -- -- -- 22.27%
All contract charges -- 348 $66,766 1.90% --
2016 Lowest contract charge 0.00% Class B $158.35 -- -- -- 0.74%
Highest contract charge 0.90% Class B $148.54 -- -- -- (0.16)%
All contract charges -- 377 $59,108 0.47% --
2015 Lowest contract charge 0.00% Class B $157.18 -- -- -- (3.16)%
Highest contract charge 0.90% Class B $148.78 -- -- -- (4.04)%
All contract charges -- 399 $62,376 0.10% --
2014 Lowest contract charge 0.00% Class B $162.31 -- -- -- (7.18)%
Highest contract charge 0.90% Class B $155.04 -- -- -- (8.01)%
All contract charges -- 428 $69,318 1.58% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $333.18 -- -- -- (6.42)%
Highest contract charge 0.60% Class A $229.45 -- -- -- (6.99)%
All contract charges -- 25 $ 4,358 1.04% --
2017 Lowest contract charge 0.00% Class A $356.05 -- -- -- 21.95%
Highest contract charge 0.60% Class A $246.69 -- -- -- 21.22%
All contract charges -- 22 $ 4,838 1.00% --
|
FSA-126
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP CORE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $291.96 -- -- -- 9.83%
Highest contract charge 0.60% Class A $203.50 -- -- -- 9.17%
All contract charges -- 20 $ 4,208 1.11% --
2015 Lowest contract charge 0.00% Class A $265.83 -- -- -- 0.37%
Highest contract charge 0.60% Class A $186.41 -- -- -- (0.23)%
All contract charges -- 19 $ 4,306 0.91% --
2014 Lowest contract charge 0.00% Class A $264.85 -- -- -- 11.62%
Highest contract charge 0.60% Class A $186.84 -- -- -- 10.95%
All contract charges -- 22 $ 5,334 1.12% --
AXA LARGE CAP CORE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.54 -- -- -- (6.42)%
Highest contract charge 0.90% Class B $179.74 -- -- -- (7.27)%
All contract charges -- 113 $ 23,359 1.04% --
2017 Lowest contract charge 0.00% Class B $229.27 -- -- -- 21.95%
Highest contract charge 0.90% Class B $193.83 -- -- -- 20.86%
All contract charges -- 119 $ 26,273 1.00% --
2016 Lowest contract charge 0.00% Class B $188.00 -- -- -- 9.83%
Highest contract charge 0.90% Class B $160.38 -- -- -- 8.84%
All contract charges -- 127 $ 22,958 1.11% --
2015 Lowest contract charge 0.00% Class B $171.18 -- -- -- 0.38%
Highest contract charge 0.90% Class B $147.35 -- -- -- (0.53)%
All contract charges -- 133 $ 21,865 0.91% --
2014 Lowest contract charge 0.00% Class B $170.54 -- -- -- 11.62%
Highest contract charge 0.90% Class B $148.14 -- -- -- 10.62%
All contract charges -- 143 $ 23,572 1.12% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $450.72 -- -- -- (2.97)%
Highest contract charge 0.60% Class A $275.09 -- -- -- (3.56)%
All contract charges -- 113 $ 44,316 0.48% --
2017 Lowest contract charge 0.00% Class A $464.53 -- -- -- 29.22%
Highest contract charge 0.60% Class A $285.25 -- -- -- 28.44%
All contract charges -- 120 $ 49,729 0.49% --
2016 Lowest contract charge 0.00% Class A $359.50 -- -- -- 5.51%
Highest contract charge 0.60% Class A $222.08 -- -- -- 4.88%
All contract charges -- 128 $ 41,088 0.57% --
2015 Lowest contract charge 0.00% Class A $340.73 -- -- -- 4.04%
Highest contract charge 0.60% Class A $211.75 -- -- -- 3.41%
All contract charges -- 136 $ 41,909 0.28% --
2014 Lowest contract charge 0.00% Class A $327.51 -- -- -- 11.08%
Highest contract charge 0.60% Class A $204.77 -- -- -- 10.42%
All contract charges -- 149 $ 45,164 0.24% --
AXA LARGE CAP GROWTH MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $430.17 -- -- -- (2.98)%
Highest contract charge 0.90% Class B $353.64 -- -- -- (3.85)%
All contract charges -- 536 $199,280 0.48% --
2017 Lowest contract charge 0.00% Class B $443.36 -- -- -- 29.21%
Highest contract charge 0.90% Class B $367.81 -- -- -- 28.05%
All contract charges -- 585 $225,714 0.49% --
2016 Lowest contract charge 0.00% Class B $343.12 -- -- -- 5.51%
Highest contract charge 0.90% Class B $287.23 -- -- -- 4.57%
All contract charges -- 637 $191,238 0.57% --
2015 Lowest contract charge 0.00% Class B $325.20 -- -- -- 4.03%
Highest contract charge 0.90% Class B $274.69 -- -- -- 3.10%
All contract charges -- 695 $198,684 0.28% --
2014 Lowest contract charge 0.00% Class B $312.59 -- -- -- 11.09%
Highest contract charge 0.90% Class B $266.44 -- -- -- 10.09%
All contract charges -- 759 $209,579 0.24% --
|
FSA-127
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $287.53 -- -- -- (9.92)%
Highest contract charge 0.90% Class A $210.45 -- -- -- (10.74)%
All contract charges -- 996 $230,158 2.46% --
2017 Lowest contract charge 0.00% Class A $319.21 -- -- -- 13.86%
Highest contract charge 0.90% Class A $235.77 -- -- -- 12.84%
All contract charges -- 1,078 $278,428 1.52% --
2016 Lowest contract charge 0.00% Class A $280.36 -- -- -- 15.32%
Highest contract charge 0.90% Class A $208.95 -- -- -- 14.29%
All contract charges -- 1,164 $265,424 1.68% --
2015 Lowest contract charge 0.00% Class A $243.12 -- -- -- (4.02)%
Highest contract charge 0.90% Class A $182.83 -- -- -- (4.88)%
All contract charges -- 1,280 $254,701 1.58% --
2014 Lowest contract charge 0.00% Class A $253.29 -- -- -- 12.23%
Highest contract charge 0.90% Class A $192.21 -- -- -- 11.22%
All contract charges -- 1,383 $288,312 1.39% --
AXA LARGE CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $214.35 -- -- -- (9.93)%
Highest contract charge 0.90% Class B $207.72 -- -- -- (10.74)%
All contract charges -- 517 $113,399 2.46% --
2017 Lowest contract charge 0.00% Class B $237.97 -- -- -- 13.86%
Highest contract charge 0.90% Class B $232.71 -- -- -- 12.83%
All contract charges -- 559 $136,908 1.52% --
2016 Lowest contract charge 0.00% Class B $209.01 -- -- -- 15.32%
Highest contract charge 0.90% Class B $206.24 -- -- -- 14.29%
All contract charges -- 597 $129,323 1.68% --
2015 Lowest contract charge 0.00% Class B $181.24 -- -- -- (4.01)%
Highest contract charge 0.90% Class B $180.46 -- -- -- (4.88)%
All contract charges -- 653 $123,278 1.58% --
2014 Lowest contract charge 0.00% Class B $188.82 -- -- -- 12.23%
Highest contract charge 0.90% Class B $189.72 -- -- -- 11.22%
All contract charges -- 695 $137,376 1.39% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class A $374.40 -- -- -- (13.30)%
Highest contract charge 0.90% Class A $286.51 -- -- -- (14.08)%
All contract charges -- 510 $159,047 1.20% --
2017 Lowest contract charge 0.00% Class A $431.81 -- -- -- 12.32%
Highest contract charge 0.90% Class A $333.46 -- -- -- 11.31%
All contract charges -- 563 $201,795 1.04% --
2016 Lowest contract charge 0.00% Class A $384.44 -- -- -- 17.67%
Highest contract charge 0.90% Class A $299.57 -- -- -- 16.62%
All contract charges -- 611 $194,982 1.22% --
2015 Lowest contract charge 0.00% Class A $326.71 -- -- -- (3.54)%
Highest contract charge 0.90% Class A $256.88 -- -- -- (4.41)%
All contract charges -- 668 $183,118 0.75% --
2014 Lowest contract charge 0.00% Class A $338.70 -- -- -- 10.87%
Highest contract charge 0.90% Class A $268.73 -- -- -- 9.87%
All contract charges -- 728 $208,857 0.58% --
AXA MID CAP VALUE MANAGED VOLATILITY
2018 Lowest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
Highest contract charge 0.00% Class B $347.03 -- -- -- (13.29)%
All contract charges -- 35 $ 12,065 1.20% --
2017 Lowest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
Highest contract charge 0.00% Class B $400.24 -- -- -- 12.32%
All contract charges -- 36 $ 14,423 1.04% --
|
FSA-128
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MID CAP VALUE MANAGED VOLATILITY (CONTINUED)
2016 Lowest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
Highest contract charge 0.00% Class B $356.34 -- -- -- 17.67%
All contract charges -- 38 $ 13,464 1.22% --
2015 Lowest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
Highest contract charge 0.00% Class B $302.82 -- -- -- (3.54)%
All contract charges -- 39 $ 11,903 0.75% --
2014 Lowest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
Highest contract charge 0.00% Class B $313.94 -- -- -- 10.87%
All contract charges -- 41 $ 12,879 0.58% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class A $393.57 -- -- -- (4.77)%
Highest contract charge 0.90% Class A $335.95 -- -- -- (5.63)%
All contract charges -- 1,323 $648,238 1.53% --
2017 Lowest contract charge 0.00% Class A $413.27 -- -- -- 11.05%
Highest contract charge 0.90% Class A $355.99 -- -- -- 10.05%
All contract charges -- 1,321 $738,975 1.22% --
2016 Lowest contract charge 0.00% Class A $372.16 -- -- -- 5.36%
Highest contract charge 0.90% Class A $323.48 -- -- -- 4.41%
All contract charges -- 1,344 $725,302 0.88% --
2015 Lowest contract charge 0.00% Class A $353.24 -- -- -- (0.88)%
Highest contract charge 0.90% Class A $309.81 -- -- -- (1.78)%
All contract charges -- 1,412 $757,108 0.81% --
2014 Lowest contract charge 0.00% Class A $356.38 -- -- -- 3.03%
Highest contract charge 0.90% Class A $315.41 -- -- -- 2.10%
All contract charges -- 1,531 $839,961 1.07% --
AXA MODERATE ALLOCATION
2018 Lowest contract charge 0.00% Class B $193.78 -- -- -- (4.77)%
Highest contract charge 0.60% Class B $175.85 -- -- -- (5.35)%
All contract charges -- 809 $151,465 1.53% --
2017 Lowest contract charge 0.00% Class B $203.48 -- -- -- 11.05%
Highest contract charge 0.60% Class B $185.78 -- -- -- 10.38%
All contract charges -- 790 $155,114 1.22% --
2016 Lowest contract charge 0.00% Class B $183.24 -- -- -- 5.36%
Highest contract charge 0.60% Class B $168.31 -- -- -- 4.73%
All contract charges -- 837 $148,117 0.88% --
2015 Lowest contract charge 0.00% Class B $173.92 -- -- -- (0.88)%
Highest contract charge 0.60% Class B $160.71 -- -- -- (1.48)%
All contract charges -- 890 $149,774 0.81% --
2014 Lowest contract charge 0.00% Class B $175.47 -- -- -- 3.03%
Highest contract charge 0.60% Class B $163.12 -- -- -- 2.41%
All contract charges -- 929 $157,713 1.07% --
AXA MODERATE GROWTH STRATEGY
2018 Lowest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
Highest contract charge 0.00% Class B $166.06 -- -- -- (5.13)%
All contract charges -- 643 $106,743 1.23% --
2017 Lowest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
Highest contract charge 0.00% Class B $175.04 -- -- -- 11.80%
All contract charges -- 626 $109,617 1.41% --
2016 Lowest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
Highest contract charge 0.00% Class B $156.57 -- -- -- 7.05%
All contract charges -- 617 $ 96,610 0.95% --
2015 Lowest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
Highest contract charge 0.00% Class B $146.26 -- -- -- (0.79)%
All contract charges -- 565 $ 82,588 1.12% --
2014 Lowest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
Highest contract charge 0.00% Class B $147.42 -- -- -- 5.01%
All contract charges -- 492 $ 72,534 1.31% --
|
FSA-129
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class A $222.44 -- -- -- (6.84)%
Highest contract charge 0.90% Class A $193.79 -- -- -- (7.68)%
All contract charges -- 1,190 $158,878 1.57% --
2017 Lowest contract charge 0.00% Class A $238.76 -- -- -- 14.89%
Highest contract charge 0.90% Class A $209.91 -- -- -- 13.86%
All contract charges -- 1,176 $189,691 1.39% --
2016 Lowest contract charge 0.00% Class A $207.81 -- -- -- 7.27%
Highest contract charge 0.90% Class A $184.35 -- -- -- 6.30%
All contract charges -- 1,173 $179,974 0.90% --
2015 Lowest contract charge 0.00% Class A $193.73 -- -- -- (1.29)%
Highest contract charge 0.90% Class A $173.42 -- -- -- (2.18)%
All contract charges -- 1,171 $181,984 0.89% --
2014 Lowest contract charge 0.00% Class A $196.26 -- -- -- 3.77%
Highest contract charge 0.90% Class A $177.28 -- -- -- 2.84%
All contract charges -- 1,235 $203,339 1.31% --
AXA MODERATE-PLUS ALLOCATION
2018 Lowest contract charge 0.00% Class B $217.90 -- -- -- (6.84)%
Highest contract charge 0.60% Class B $198.79 -- -- -- (7.40)%
All contract charges -- 1,084 $233,271 1.57% --
2017 Lowest contract charge 0.00% Class B $233.89 -- -- -- 14.89%
Highest contract charge 0.60% Class B $214.67 -- -- -- 14.20%
All contract charges -- 1,158 $267,770 1.39% --
2016 Lowest contract charge 0.00% Class B $203.57 -- -- -- 7.27%
Highest contract charge 0.60% Class B $187.97 -- -- -- 6.63%
All contract charges -- 1,198 $241,006 0.90% --
2015 Lowest contract charge 0.00% Class B $189.77 -- -- -- (1.30)%
Highest contract charge 0.60% Class B $176.29 -- -- -- (1.88)%
All contract charges -- 1,228 $230,412 0.89% --
2014 Lowest contract charge 0.00% Class B $192.26 -- -- -- 3.77%
Highest contract charge 0.60% Class B $179.67 -- -- -- 3.15%
All contract charges -- 1,245 $236,907 1.31% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class A $508.91 -- -- -- (7.88)%
Highest contract charge 0.90% Class A $418.36 -- -- -- (8.71)%
All contract charges -- 394 $123,432 0.12% --
2017 Lowest contract charge 0.00% Class A $552.43 -- -- -- 22.67%
Highest contract charge 0.90% Class A $458.28 -- -- -- 21.57%
All contract charges -- 358 $142,467 0.27% --
2016 Lowest contract charge 0.00% Class A $450.34 -- -- -- 12.58%
Highest contract charge 0.90% Class A $376.97 -- -- -- 11.57%
All contract charges -- 377 $130,425 0.36% --
2015 Lowest contract charge 0.00% Class A $400.02 -- -- -- (2.91)%
Highest contract charge 0.90% Class A $337.88 -- -- -- (3.78)%
All contract charges -- 399 $126,365 0.05% --
2014 Lowest contract charge 0.00% Class A $412.00 -- -- -- 3.57%
Highest contract charge 0.90% Class A $351.16 -- -- -- 2.64%
All contract charges -- 422 $144,210 0.06% --
AXA/AB SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $417.73 -- -- -- (7.88)%
Highest contract charge 0.60% Class B $331.02 -- -- -- (8.43)%
All contract charges -- 182 $ 62,991 0.12% --
2017 Lowest contract charge 0.00% Class B $453.45 -- -- -- 22.67%
Highest contract charge 0.60% Class B $361.51 -- -- -- 21.93%
All contract charges -- 189 $ 71,440 0.27% --
|
FSA-130
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/AB SMALL CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $369.65 -- -- -- 12.58%
Highest contract charge 0.60% Class B $296.48 -- -- -- 11.90%
All contract charges -- 204 $62,757 0.36% --
2015 Lowest contract charge 0.00% Class B $328.35 -- -- -- (2.91)%
Highest contract charge 0.60% Class B $264.94 -- -- -- (3.49)%
All contract charges -- 221 $60,376 0.05% --
2014 Lowest contract charge 0.00% Class B $338.19 -- -- -- 3.57%
Highest contract charge 0.60% Class B $274.53 -- -- -- 2.96%
All contract charges -- 236 $66,544 0.06% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
Highest contract charge 0.00% Class A $470.86 -- -- -- (0.35)%
All contract charges -- 96 $11,281 0.17% --
2017 Lowest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
Highest contract charge 0.00% Class A $472.51 -- -- -- 25.59%
All contract charges -- 99 $12,081 0.08% --
2016 Lowest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
Highest contract charge 0.00% Class A $376.24 -- -- -- 0.88%
All contract charges -- 120 $10,833 0.00% --
2015 Lowest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
Highest contract charge 0.00% Class A $372.96 -- -- -- 1.27%
All contract charges -- 124 $11,612 0.00% --
2014 Lowest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
Highest contract charge 0.00% Class A $368.28 -- -- -- 3.80%
All contract charges -- 121 $12,253 0.00% --
AXA/CLEARBRIDGE LARGE CAP GROWTH
2018 Lowest contract charge 0.00% Class B $269.42 -- -- -- (0.35)%
Highest contract charge 0.90% Class B $226.20 -- -- -- (1.25)%
All contract charges -- 263 $65,342 0.17% --
2017 Lowest contract charge 0.00% Class B $270.36 -- -- -- 25.59%
Highest contract charge 0.90% Class B $229.06 -- -- -- 24.46%
All contract charges -- 276 $69,313 0.08% --
2016 Lowest contract charge 0.00% Class B $215.27 -- -- -- 0.88%
Highest contract charge 0.90% Class B $184.04 -- -- -- (0.02)%
All contract charges -- 310 $62,282 0.00% --
2015 Lowest contract charge 0.00% Class B $213.39 -- -- -- 1.27%
Highest contract charge 0.90% Class B $184.08 -- -- -- 0.35%
All contract charges -- 364 $72,486 0.00% --
2014 Lowest contract charge 0.00% Class B $210.71 -- -- -- 3.80%
Highest contract charge 0.90% Class B $183.43 -- -- -- 2.87%
All contract charges -- 419 $82,054 0.00% --
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class A $198.06 -- -- -- (1.79)%
Highest contract charge 0.90% Class A $178.18 -- -- -- (2.68)%
All contract charges -- 96 $18,250 0.00% --
2017 Lowest contract charge 0.00% Class A $201.67 -- -- -- 27.90%
Highest contract charge 0.90% Class A $183.08 -- -- -- 26.75%
All contract charges -- 109 $20,920 0.00% --
2016 Lowest contract charge 0.00% Class A $157.68 -- -- -- (4.33)%
Highest contract charge 0.90% Class A $144.44 -- -- -- (5.19)%
All contract charges -- 113 $17,115 0.00% --
2015 Lowest contract charge 0.00% Class A $164.82 -- -- -- (5.49)%
Highest contract charge 0.90% Class A $152.35 -- -- -- (6.34)%
All contract charges -- 129 $20,433 0.00% --
2014 Lowest contract charge 0.00% Class A $174.40 -- -- -- (0.71)%
Highest contract charge 0.90% Class A $162.67 -- -- -- (1.60)%
All contract charges -- 154 $25,987 0.00% --
|
FSA-131
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
AXA/JANUS ENTERPRISE
2018 Lowest contract charge 0.00% Class B $286.64 -- -- -- (1.79)%
Highest contract charge 0.60% Class B $182.43 -- -- -- (2.38)%
All contract charges -- 104 $23,363 0.00% --
2017 Lowest contract charge 0.00% Class B $291.87 -- -- -- 27.90%
Highest contract charge 0.60% Class B $186.88 -- -- -- 27.14%
All contract charges -- 99 $25,171 0.00% --
2016 Lowest contract charge 0.00% Class B $228.20 -- -- -- (4.33)%
Highest contract charge 0.60% Class B $146.99 -- -- -- (4.90)%
All contract charges -- 102 $20,749 0.00% --
2015 Lowest contract charge 0.00% Class B $238.53 -- -- -- (5.49)%
Highest contract charge 0.60% Class B $154.57 -- -- -- (6.06)%
All contract charges -- 105 $22,021 0.00% --
2014 Lowest contract charge 0.00% Class B $252.39 -- -- -- (0.71)%
Highest contract charge 0.60% Class B $164.54 -- -- -- (1.31)%
All contract charges -- 109 $23,819 0.00% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class A $275.24 -- -- -- (2.98)%
Highest contract charge 0.90% Class A $247.62 -- -- -- (3.86)%
All contract charges -- 116 $14,806 0.09% --
2017 Lowest contract charge 0.00% Class A $283.70 -- -- -- 34.60%
Highest contract charge 0.90% Class A $257.56 -- -- -- 33.39%
All contract charges -- 90 $15,287 0.18% --
2016 Lowest contract charge 0.00% Class A $210.78 -- -- -- 6.82%
Highest contract charge 0.90% Class A $193.09 -- -- -- 5.85%
All contract charges -- 81 $10,978 0.34% --
2015 Lowest contract charge 0.00% Class A $197.33 -- -- -- 11.53%
Highest contract charge 0.90% Class A $182.41 -- -- -- 10.52%
All contract charges -- 56 $ 9,495 0.12% --
2014 Lowest contract charge 0.00% Class A $176.93 -- -- -- 7.81%
Highest contract charge 0.90% Class A $165.04 -- -- -- 6.85%
All contract charges -- 56 $ 8,450 0.11% --
AXA/LOOMIS SAYLES GROWTH
2018 Lowest contract charge 0.00% Class B $336.10 -- -- -- (2.98)%
Highest contract charge 0.60% Class B $253.58 -- -- -- (3.57)%
All contract charges -- 78 $24,819 0.09% --
2017 Lowest contract charge 0.00% Class B $346.43 -- -- -- 34.59%
Highest contract charge 0.60% Class B $262.96 -- -- -- 33.78%
All contract charges -- 75 $24,456 0.18% --
2016 Lowest contract charge 0.00% Class B $257.40 -- -- -- 6.81%
Highest contract charge 0.60% Class B $196.56 -- -- -- 6.17%
All contract charges -- 75 $18,005 0.34% --
2015 Lowest contract charge 0.00% Class B $240.98 -- -- -- 11.52%
Highest contract charge 0.60% Class B $185.13 -- -- -- 10.86%
All contract charges -- 71 $15,923 0.12% --
2014 Lowest contract charge 0.00% Class B $216.08 -- -- -- 7.82%
Highest contract charge 0.60% Class B $167.00 -- -- -- 7.17%
All contract charges -- 76 $15,333 0.11% --
BLACKROCK GLOBAL ALLOCATION V.I. FUND
2018 Lowest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
Highest contract charge 0.00% Class III $142.46 -- -- -- (7.58)%
All contract charges -- 302 $ 5,434 1.04% --
2017 Lowest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
Highest contract charge 0.00% Class III $154.14 -- -- -- 13.71%
All contract charges -- 193 $ 4,268 1.33% --
|
FSA-132
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
BLACKROCK GLOBAL ALLOCATION V.I. FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
Highest contract charge 0.00% Class III $135.56 -- -- -- 3.81%
All contract charges -- 171 $ 4,445 0.69% --
2015 Lowest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
Highest contract charge 0.00% Class III $130.59 -- -- -- (1.00)%
All contract charges -- 203 $ 9,384 1.08% --
2014 Lowest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
Highest contract charge 0.00% Class III $131.91 -- -- -- 1.93%
All contract charges -- 200 $ 9,833 2.50% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class A $238.57 -- -- -- (0.50)%
Highest contract charge 0.90% Class A $229.10 -- -- -- (1.40)%
All contract charges -- 212 $53,081 2.21% --
2017 Lowest contract charge 0.00% Class A $239.78 -- -- -- 2.24%
Highest contract charge 0.90% Class A $232.36 -- -- -- 1.32%
All contract charges -- 220 $57,442 1.58% --
2016 Lowest contract charge 0.00% Class A $234.53 -- -- -- 2.93%
Highest contract charge 0.90% Class A $229.34 -- -- -- 2.01%
All contract charges -- 252 $66,941 1.97% --
2015 Lowest contract charge 0.00% Class A $227.86 -- -- -- (0.64)%
Highest contract charge 0.90% Class A $224.83 -- -- -- (1.53)%
All contract charges -- 265 $70,209 1.52% --
2014 Lowest contract charge 0.00% Class A $229.33 -- -- -- 2.39%
Highest contract charge 0.90% Class A $228.33 -- -- -- 1.46%
All contract charges -- 286 $77,439 2.51% --
CHARTER/SM /MULTI-SECTOR BOND
2018 Lowest contract charge 0.00% Class B $144.32 -- -- -- (0.50)%
Highest contract charge 0.60% Class B $110.73 -- -- -- (1.10)%
All contract charges -- 118 $14,419 2.21% --
2017 Lowest contract charge 0.00% Class B $145.05 -- -- -- 2.24%
Highest contract charge 0.60% Class B $111.96 -- -- -- 1.62%
All contract charges -- 126 $15,563 1.58% --
2016 Lowest contract charge 0.00% Class B $141.87 -- -- -- 2.93%
Highest contract charge 0.60% Class B $110.17 -- -- -- 2.31%
All contract charges -- 132 $15,824 1.97% --
2015 Lowest contract charge 0.00% Class B $137.83 -- -- -- (0.64)%
Highest contract charge 0.60% Class B $107.68 -- -- -- (1.24)%
All contract charges -- 136 $15,816 1.52% --
2014 Lowest contract charge 0.00% Class B $138.72 -- -- -- 2.38%
Highest contract charge 0.60% Class B $109.03 -- -- -- 1.77%
All contract charges -- 145 $16,903 2.51% --
CHARTER/SM /SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class B $230.14 -- -- -- (5.03)%
Highest contract charge 0.90% Class B $141.28 -- -- -- (5.89)%
All contract charges -- 62 $12,512 3.68% --
2017 Lowest contract charge 0.00% Class B $242.33 -- -- -- 24.36%
Highest contract charge 0.90% Class B $150.12 -- -- -- 23.24%
All contract charges -- 62 $13,055 2.72% --
2016 Lowest contract charge 0.00% Class B $194.86 -- -- -- 9.35%
Highest contract charge 0.90% Class B $121.81 -- -- -- 8.37%
All contract charges -- 63 $10,707 0.00% --
2015 Lowest contract charge 0.00% Class B $178.20 -- -- -- (6.04)%
Highest contract charge 0.90% Class B $112.40 -- -- -- (6.89)%
All contract charges -- 72 $11,024 0.27% --
|
FSA-133
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
CHARTER/SM /SMALL CAP GROWTH (CONTINUED)
2014 Lowest contract charge 0.00% Class B $189.66 -- -- -- (2.61)%
Highest contract charge 0.90% Class B $120.72 -- -- -- (3.49)%
All contract charges -- 73 $12,004 0.00% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class A $293.02 -- -- -- (12.98)%
Highest contract charge 0.60% Class A $267.34 -- -- -- (13.51)%
All contract charges -- 37 $10,770 1.15% --
2017 Lowest contract charge 0.00% Class A $336.73 -- -- -- 11.29%
Highest contract charge 0.60% Class A $309.09 -- -- -- 10.63%
All contract charges -- 43 $14,136 1.45% --
2016 Lowest contract charge 0.00% Class A $302.56 -- -- -- 25.23%
Highest contract charge 0.60% Class A $279.39 -- -- -- 24.48%
All contract charges -- 46 $13,586 1.36% --
2015 Lowest contract charge 0.00% Class A $241.60 -- -- -- (13.13)%
Highest contract charge 0.60% Class A $224.44 -- -- -- (13.65)%
All contract charges -- 48 $11,523 0.52% --
2014 Lowest contract charge 0.00% Class A $278.12 -- -- -- (5.12)%
Highest contract charge 0.60% Class A $259.93 -- -- -- (5.69)%
All contract charges -- 51 $14,155 0.17% --
CHARTER/SM /SMALL CAP VALUE
2018 Lowest contract charge 0.00% Class B $307.37 -- -- -- (12.98)%
Highest contract charge 0.90% Class B $257.41 -- -- -- (13.77)%
All contract charges -- 48 $13,628 1.15% --
2017 Lowest contract charge 0.00% Class B $353.23 -- -- -- 11.30%
Highest contract charge 0.90% Class B $298.52 -- -- -- 10.30%
All contract charges -- 51 $16,788 1.45% --
2016 Lowest contract charge 0.00% Class B $317.38 -- -- -- 25.23%
Highest contract charge 0.90% Class B $270.65 -- -- -- 24.11%
All contract charges -- 55 $16,433 1.36% --
2015 Lowest contract charge 0.00% Class B $253.43 -- -- -- (13.13)%
Highest contract charge 0.90% Class B $218.07 -- -- -- (13.92)%
All contract charges -- 61 $14,517 0.52% --
2014 Lowest contract charge 0.00% Class B $291.75 -- -- -- (5.11)%
Highest contract charge 0.90% Class B $253.33 -- -- -- (5.96)%
All contract charges -- 65 $17,745 0.17% --
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
Highest contract charge 0.00% Class II $ 11.07 -- -- -- (12.77)%
All contract charges -- 56 $ 618 0.25% --
2017 Lowest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
Highest contract charge 0.00% Class II $ 12.69 -- -- -- 12.50%
All contract charges -- 25 $ 314 0.47% --
2016 Lowest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
Highest contract charge 0.00% Class II(c) $ 11.28 -- -- -- 12.91%
All contract charges -- -- $ 5 1.01% --
EQ/AMERICAN CENTURY MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(g) $ 21.75 -- -- -- (9.38)%
Highest contract charge 0.90% Class B(f)(g) $201.05 -- -- -- (9.54)%
All contract charges -- 443 $48,111 0.57% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class A $360.36 -- -- -- (8.02)%
Highest contract charge 0.60% Class A $328.79 -- -- -- (8.57)%
All contract charges -- 244 $35,722 1.60% --
2017 Lowest contract charge 0.00% Class A $391.76 -- -- -- 8.11%
Highest contract charge 0.60% Class A $359.60 -- -- -- 7.46%
All contract charges -- 247 $41,840 1.40% --
|
FSA-134
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/BLACKROCK BASIC VALUE EQUITY (CONTINUED)
2016 Lowest contract charge 0.00% Class A $362.37 -- -- -- 17.96%
Highest contract charge 0.60% Class A $334.63 -- -- -- 17.26%
All contract charges -- 246 $ 40,079 1.49% --
2015 Lowest contract charge 0.00% Class A $307.19 -- -- -- (6.15)%
Highest contract charge 0.60% Class A $285.38 -- -- -- (6.71)%
All contract charges -- 242 $ 36,247 1.28% --
2014 Lowest contract charge 0.00% Class A $327.32 -- -- -- 9.71%
Highest contract charge 0.60% Class A $305.92 -- -- -- 9.05%
All contract charges -- 227 $ 40,401 1.07% --
EQ/BLACKROCK BASIC VALUE EQUITY
2018 Lowest contract charge 0.00% Class B $474.29 -- -- -- (8.01)%
Highest contract charge 0.90% Class B $389.92 -- -- -- (8.85)%
All contract charges -- 347 $147,522 1.60% --
2017 Lowest contract charge 0.00% Class B $515.61 -- -- -- 8.11%
Highest contract charge 0.90% Class B $427.76 -- -- -- 7.14%
All contract charges -- 369 $170,709 1.40% --
2016 Lowest contract charge 0.00% Class B $476.93 -- -- -- 17.96%
Highest contract charge 0.90% Class B $399.26 -- -- -- 16.91%
All contract charges -- 400 $171,810 1.49% --
2015 Lowest contract charge 0.00% Class B $404.30 -- -- -- (6.15)%
Highest contract charge 0.90% Class B $341.52 -- -- -- (6.99)%
All contract charges -- 436 $158,529 1.28% --
2014 Lowest contract charge 0.00% Class B $430.79 -- -- -- 9.70%
Highest contract charge 0.90% Class B $367.20 -- -- -- 8.72%
All contract charges -- 463 $179,873 1.07% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class A $421.95 -- -- -- (4.84)%
Highest contract charge 0.60% Class A $262.91 -- -- -- (5.41)%
All contract charges -- 70 $ 15,092 0.57% --
2017 Lowest contract charge 0.00% Class A $443.41 -- -- -- 25.44%
Highest contract charge 0.60% Class A $277.95 -- -- -- 24.69%
All contract charges -- 62 $ 16,329 0.78% --
2016 Lowest contract charge 0.00% Class A $353.49 -- -- -- 8.42%
Highest contract charge 0.60% Class A $222.92 -- -- -- 7.77%
All contract charges -- 60 $ 13,834 0.87% --
2015 Lowest contract charge 0.00% Class A $326.03 -- -- -- 1.91%
Highest contract charge 0.60% Class A $206.84 -- -- -- 1.30%
All contract charges -- 62 $ 14,705 0.59% --
2014 Lowest contract charge 0.00% Class A $319.92 -- -- -- 10.51%
Highest contract charge 0.60% Class A $204.19 -- -- -- 9.85%
All contract charges -- 62 $ 15,531 0.70% --
EQ/CAPITAL GUARDIAN RESEARCH
2018 Lowest contract charge 0.00% Class B $320.51 -- -- -- (4.84)%
Highest contract charge 0.90% Class B $269.10 -- -- -- (5.70)%
All contract charges -- 337 $ 96,993 0.57% --
2017 Lowest contract charge 0.00% Class B $336.81 -- -- -- 25.44%
Highest contract charge 0.90% Class B $285.37 -- -- -- 24.31%
All contract charges -- 358 $108,933 0.78% --
2016 Lowest contract charge 0.00% Class B $268.51 -- -- -- 8.42%
Highest contract charge 0.90% Class B $229.56 -- -- -- 7.45%
All contract charges -- 377 $ 92,101 0.87% --
2015 Lowest contract charge 0.00% Class B $247.65 -- -- -- 1.91%
Highest contract charge 0.90% Class B $213.65 -- -- -- 1.00%
All contract charges -- 417 $ 94,238 0.59% --
2014 Lowest contract charge 0.00% Class B $243.01 -- -- -- 10.51%
Highest contract charge 0.90% Class B $211.54 -- -- -- 9.52%
All contract charges -- 419 $ 93,222 0.70% --
|
FSA-135
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class A $677.71 -- -- -- (5.80)%
Highest contract charge 0.90% Class A $683.50 -- -- -- (6.65)%
All contract charges -- 1,222 $1,276,167 1.30% --
2017 Lowest contract charge 0.00% Class A $719.43 -- -- -- 20.47%
Highest contract charge 0.90% Class A $732.21 -- -- -- 19.39%
All contract charges -- 1,320 $1,495,123 1.30% --
2016 Lowest contract charge 0.00% Class A $597.19 -- -- -- 11.69%
Highest contract charge 0.90% Class A $613.30 -- -- -- 10.69%
All contract charges -- 1,384 $1,360,428 1.55% --
2015 Lowest contract charge 0.00% Class A $534.69 -- -- -- (0.05)%
Highest contract charge 0.90% Class A $554.08 -- -- -- (0.95)%
All contract charges -- 1,448 $1,330,558 1.37% --
2014 Lowest contract charge 0.00% Class A $534.98 -- -- -- 12.05%
Highest contract charge 0.90% Class A $559.42 -- -- -- 11.05%
All contract charges -- 1,467 $1,441,799 1.24% --
EQ/COMMON STOCK INDEX
2018 Lowest contract charge 0.00% Class B $211.64 -- -- -- (5.80)%
Highest contract charge 0.60% Class B $226.64 -- -- -- (6.37)%
All contract charges -- 926 $ 205,339 1.30% --
2017 Lowest contract charge 0.00% Class B $224.67 -- -- -- 20.47%
Highest contract charge 0.60% Class B $242.06 -- -- -- 19.75%
All contract charges -- 951 $ 225,386 1.30% --
2016 Lowest contract charge 0.00% Class B $186.50 -- -- -- 11.69%
Highest contract charge 0.60% Class B $202.14 -- -- -- 11.02%
All contract charges -- 981 $ 194,128 1.55% --
2015 Lowest contract charge 0.00% Class B $166.98 -- -- -- (0.05)%
Highest contract charge 0.60% Class B $182.07 -- -- -- (0.65)%
All contract charges -- 1,016 $ 181,517 1.37% --
2014 Lowest contract charge 0.00% Class B $167.07 -- -- -- 12.05%
Highest contract charge 0.60% Class B $183.27 -- -- -- 11.38%
All contract charges -- 1,060 $ 191,161 1.24% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class A $137.67 -- -- -- 0.25%
Highest contract charge 0.90% Class A $123.31 -- -- -- (0.66)%
All contract charges -- 176 $ 25,499 1.91% --
2017 Lowest contract charge 0.00% Class A $137.33 -- -- -- 1.46%
Highest contract charge 0.90% Class A $124.13 -- -- -- 0.55%
All contract charges -- 182 $ 26,157 1.39% --
2016 Lowest contract charge 0.00% Class A $135.35 -- -- -- 1.38%
Highest contract charge 0.90% Class A $123.45 -- -- -- 0.47%
All contract charges -- 200 $ 28,475 1.50% --
2015 Lowest contract charge 0.00% Class A $133.51 -- -- -- 0.44%
Highest contract charge 0.90% Class A $122.87 -- -- -- (0.47)%
All contract charges -- 207 $ 29,322 1.49% --
2014 Lowest contract charge 0.00% Class A $132.93 -- -- -- 2.41%
Highest contract charge 0.90% Class A $123.45 -- -- -- 1.50%
All contract charges -- 219 $ 30,635 1.31% --
EQ/CORE BOND INDEX
2018 Lowest contract charge 0.00% Class B $143.04 -- -- -- 0.25%
Highest contract charge 0.60% Class B $158.32 -- -- -- (0.36)%
All contract charges -- 162 $ 24,073 1.91% --
2017 Lowest contract charge 0.00% Class B $142.69 -- -- -- 1.46%
Highest contract charge 0.60% Class B $158.89 -- -- -- 0.86%
All contract charges -- 172 $ 25,594 1.39% --
|
FSA-136
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/CORE BOND INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class B $140.63 -- -- -- 1.38%
Highest contract charge 0.60% Class B $157.54 -- -- -- 0.77%
All contract charges -- 165 $ 24,392 1.50% --
2015 Lowest contract charge 0.00% Class B $138.72 -- -- -- 0.44%
Highest contract charge 0.60% Class B $156.34 -- -- -- (0.17)%
All contract charges -- 157 $ 23,116 1.49% --
2014 Lowest contract charge 0.00% Class B $138.11 -- -- -- 2.41%
Highest contract charge 0.60% Class B $156.60 -- -- -- 1.80%
All contract charges -- 151 $ 22,367 1.31% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class A $777.94 -- -- -- (4.93)%
Highest contract charge 0.90% Class A $628.01 -- -- -- (5.80)%
All contract charges -- 1,470 $538,073 1.45% --
2017 Lowest contract charge 0.00% Class A $818.32 -- -- -- 21.04%
Highest contract charge 0.90% Class A $666.65 -- -- -- 19.96%
All contract charges -- 1,393 $602,506 1.45% --
2016 Lowest contract charge 0.00% Class A $676.05 -- -- -- 11.24%
Highest contract charge 0.90% Class A $555.73 -- -- -- 10.24%
All contract charges -- 1,292 $542,718 1.66% --
2015 Lowest contract charge 0.00% Class A $607.76 -- -- -- 0.80%
Highest contract charge 0.90% Class A $504.12 -- -- -- (0.11)%
All contract charges -- 1,399 $519,057 1.61% --
2014 Lowest contract charge 0.00% Class A $602.94 -- -- -- 12.98%
Highest contract charge 0.90% Class A $504.66 -- -- -- 11.96%
All contract charges -- 1,320 $556,228 1.39% --
EQ/EQUITY 500 INDEX
2018 Lowest contract charge 0.00% Class B $235.43 -- -- -- (4.94)%
Highest contract charge 0.60% Class B $216.18 -- -- -- (5.51)%
All contract charges -- 1,158 $264,177 1.45% --
2017 Lowest contract charge 0.00% Class B $247.66 -- -- -- 21.04%
Highest contract charge 0.60% Class B $228.79 -- -- -- 20.32%
All contract charges -- 1,137 $272,641 1.45% --
2016 Lowest contract charge 0.00% Class B $204.61 -- -- -- 11.23%
Highest contract charge 0.60% Class B $190.15 -- -- -- 10.56%
All contract charges -- 1,100 $217,785 1.66% --
2015 Lowest contract charge 0.00% Class B $183.95 -- -- -- 0.79%
Highest contract charge 0.60% Class B $171.99 -- -- -- 0.19%
All contract charges -- 1,073 $191,053 1.61% --
2014 Lowest contract charge 0.00% Class B $182.51 -- -- -- 12.97%
Highest contract charge 0.60% Class B $171.67 -- -- -- 12.30%
All contract charges -- 1,056 $186,511 1.39% --
EQ/FIDELITY INSTITUTIONAL AM/SM /LARGE CAP
2018 Lowest contract charge 0.00% Class B(f)(h) $ 32.04 -- -- -- (11.05)%
Highest contract charge 0.90% Class B(f)(h) $195.89 -- -- -- (11.22)%
All contract charges -- 589 $ 93,723 0.25% --
EQ/FRANKLIN RISING DIVIDENDS
2018 Lowest contract charge 0.00% Class B(f)(i) $232.46 -- -- -- (7.28)%
Highest contract charge 0.90% Class B(f)(i) $214.89 -- -- -- (7.44)%
All contract charges -- 229 $ 52,109 0.29% --
EQ/FRANKLIN STRATEGIC INCOME
2018 Lowest contract charge 0.00% Class B(f)(j) $136.15 -- -- -- (1.14)%
Highest contract charge 0.90% Class B(f)(j) $125.86 -- -- -- (1.32)%
All contract charges -- 250 $ 33,498 0.70% --
|
FSA-137
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class A $142.20 -- -- -- (1.63)%
Highest contract charge 0.90% Class A $119.81 -- -- -- (2.51)%
All contract charges -- 104 $ 7,532 1.35% --
2017 Lowest contract charge 0.00% Class A $144.55 -- -- -- 4.65%
Highest contract charge 0.90% Class A $122.90 -- -- -- 3.71%
All contract charges -- 99 $ 7,953 0.04% --
2016 Lowest contract charge 0.00% Class A $138.13 -- -- -- 0.68%
Highest contract charge 0.90% Class A $118.50 -- -- -- (0.23)%
All contract charges -- 99 $ 8,311 1.92% --
2015 Lowest contract charge 0.00% Class A $137.20 -- -- -- (3.80)%
Highest contract charge 0.90% Class A $118.77 -- -- -- (4.66)%
All contract charges -- 93 $ 8,563 0.04% --
2014 Lowest contract charge 0.00% Class A $142.62 -- -- -- 0.88%
Highest contract charge 0.90% Class A $124.58 -- -- -- (0.02)%
All contract charges -- 100 $11,375 0.67% --
EQ/GLOBAL BOND PLUS
2018 Lowest contract charge 0.00% Class B $135.52 -- -- -- (1.63)%
Highest contract charge 0.60% Class B $122.66 -- -- -- (2.22)%
All contract charges -- 69 $ 9,105 1.35% --
2017 Lowest contract charge 0.00% Class B $137.76 -- -- -- 4.65%
Highest contract charge 0.60% Class B $125.44 -- -- -- 4.02%
All contract charges -- 68 $ 9,131 0.04% --
2016 Lowest contract charge 0.00% Class B $131.64 -- -- -- 0.68%
Highest contract charge 0.60% Class B $120.59 -- -- -- 0.07%
All contract charges -- 69 $ 8,747 1.92% --
2015 Lowest contract charge 0.00% Class B $130.75 -- -- -- (3.80)%
Highest contract charge 0.60% Class B $120.50 -- -- -- (4.38)%
All contract charges -- 66 $ 8,457 0.04% --
2014 Lowest contract charge 0.00% Class B $135.92 -- -- -- 0.89%
Highest contract charge 0.60% Class B $126.02 -- -- -- 0.29%
All contract charges -- 67 $ 8,941 0.67% --
EQ/GOLDMAN SACHS MID CAP VALUE
2018 Lowest contract charge 0.00% Class B(f)(k) $182.47 -- -- -- (8.70)%
Highest contract charge 0.90% Class B(f)(k) $168.67 -- -- -- (8.86)%
All contract charges -- 48 $ 8,496 0.22% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class A $237.70 -- -- -- 0.83%
Highest contract charge 0.90% Class A $199.78 -- -- -- (0.08)%
All contract charges -- 207 $29,582 1.24% --
2017 Lowest contract charge 0.00% Class A $235.74 -- -- -- 0.34%
Highest contract charge 0.90% Class A $199.94 -- -- -- (0.56)%
All contract charges -- 370 $69,699 0.84% --
2016 Lowest contract charge 0.00% Class A $234.93 -- -- -- 0.45%
Highest contract charge 0.90% Class A $201.07 -- -- -- (0.45)%
All contract charges -- 354 $70,206 0.70% --
2015 Lowest contract charge 0.00% Class A $233.88 -- -- -- 0.43%
Highest contract charge 0.90% Class A $201.98 -- -- -- (0.47)%
All contract charges -- 323 $65,486 0.60% --
2014 Lowest contract charge 0.00% Class A $232.88 -- -- -- 1.53%
Highest contract charge 0.90% Class A $202.94 -- -- -- 0.62%
All contract charges -- 318 $65,987 0.40% --
EQ/INTERMEDIATE GOVERNMENT BOND
2018 Lowest contract charge 0.00% Class B $170.68 -- -- -- 0.83%
Highest contract charge 0.60% Class B $151.63 -- -- -- 0.22%
All contract charges -- 119 $18,533 1.24% --
|
FSA-138
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INTERMEDIATE GOVERNMENT BOND (CONTINUED)
2017 Lowest contract charge 0.00% Class B $169.28 -- -- -- 0.34%
Highest contract charge 0.60% Class B $151.29 -- -- -- (0.26)%
All contract charges -- 123 $ 19,188 0.84% --
2016 Lowest contract charge 0.00% Class B $168.70 -- -- -- 0.45%
Highest contract charge 0.60% Class B $151.68 -- -- -- (0.15)%
All contract charges -- 135 $ 20,929 0.70% --
2015 Lowest contract charge 0.00% Class B $167.94 -- -- -- 0.42%
Highest contract charge 0.60% Class B $151.91 -- -- -- (0.18)%
All contract charges -- 120 $ 18,638 0.60% --
2014 Lowest contract charge 0.00% Class B $167.23 -- -- -- 1.54%
Highest contract charge 0.60% Class B $152.18 -- -- -- 0.93%
All contract charges -- 125 $ 19,156 0.40% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class A $199.45 -- -- -- (15.17)%
Highest contract charge 0.90% Class A $160.91 -- -- -- (15.94)%
All contract charges -- 1,515 $218,461 2.40% --
2017 Lowest contract charge 0.00% Class A $235.12 -- -- -- 23.22%
Highest contract charge 0.90% Class A $191.42 -- -- -- 22.12%
All contract charges -- 1,529 $270,450 2.64% --
2016 Lowest contract charge 0.00% Class A $190.81 -- -- -- 2.20%
Highest contract charge 0.90% Class A $156.75 -- -- -- 1.28%
All contract charges -- 1,486 $220,734 2.72% --
2015 Lowest contract charge 0.00% Class A $186.71 -- -- -- (2.14)%
Highest contract charge 0.90% Class A $154.77 -- -- -- (3.02)%
All contract charges -- 1,506 $232,186 2.32% --
2014 Lowest contract charge 0.00% Class A $190.79 -- -- -- (6.90)%
Highest contract charge 0.90% Class A $159.59 -- -- -- (7.74)%
All contract charges -- 1,507 $254,494 2.97% --
EQ/INTERNATIONAL EQUITY INDEX
2018 Lowest contract charge 0.00% Class B $136.17 -- -- -- (15.17)%
Highest contract charge 0.90% Class B $118.46 -- -- -- (15.94)%
All contract charges -- 407 $ 53,646 2.40% --
2017 Lowest contract charge 0.00% Class B $160.52 -- -- -- 23.22%
Highest contract charge 0.90% Class B $140.92 -- -- -- 22.11%
All contract charges -- 409 $ 63,674 2.64% --
2016 Lowest contract charge 0.00% Class B $130.27 -- -- -- 2.20%
Highest contract charge 0.90% Class B $115.40 -- -- -- 1.28%
All contract charges -- 407 $ 51,586 2.72% --
2015 Lowest contract charge 0.00% Class B $127.47 -- -- -- (2.13)%
Highest contract charge 0.90% Class B $113.94 -- -- -- (3.02)%
All contract charges -- 424 $ 52,585 2.32% --
2014 Lowest contract charge 0.00% Class B $130.25 -- -- -- (6.90)%
Highest contract charge 0.90% Class B $117.49 -- -- -- (7.74)%
All contract charges -- 414 $ 52,708 2.97% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class A $169.29 -- -- -- (12.39)%
Highest contract charge 0.90% Class A $152.29 -- -- -- (13.19)%
All contract charges -- 92 $ 11,775 1.55% --
2017 Lowest contract charge 0.00% Class A $193.24 -- -- -- 17.98%
Highest contract charge 0.90% Class A $175.43 -- -- -- 16.92%
All contract charges -- 94 $ 14,441 0.80% --
2016 Lowest contract charge 0.00% Class A $163.79 -- -- -- 17.38%
Highest contract charge 0.90% Class A $150.04 -- -- -- 16.32%
All contract charges -- 80 $ 10,866 2.44% --
|
FSA-139
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/INVESCO COMSTOCK (CONTINUED)
2015 Lowest contract charge 0.00% Class A $139.54 -- -- -- (6.19)%
Highest contract charge 0.90% Class A $128.99 -- -- -- (7.03)%
All contract charges -- 100 $12,263 2.18% --
2014 Lowest contract charge 0.00% Class A $148.75 -- -- -- 8.92%
Highest contract charge 0.90% Class A $138.74 -- -- -- 7.94%
All contract charges -- 101 $13,086 1.88% --
EQ/INVESCO COMSTOCK
2018 Lowest contract charge 0.00% Class B $215.50 -- -- -- (12.39)%
Highest contract charge 0.60% Class B $155.85 -- -- -- (12.92)%
All contract charges -- 68 $13,818 1.55% --
2017 Lowest contract charge 0.00% Class B $245.99 -- -- -- 17.98%
Highest contract charge 0.60% Class B $178.98 -- -- -- 17.27%
All contract charges -- 66 $15,264 0.80% --
2016 Lowest contract charge 0.00% Class B $208.50 -- -- -- 17.37%
Highest contract charge 0.60% Class B $152.62 -- -- -- 16.67%
All contract charges -- 65 $12,804 2.44% --
2015 Lowest contract charge 0.00% Class B $177.64 -- -- -- (6.19)%
Highest contract charge 0.60% Class B $130.81 -- -- -- (6.75)%
All contract charges -- 71 $11,678 2.18% --
2014 Lowest contract charge 0.00% Class B $189.36 -- -- -- 8.92%
Highest contract charge 0.60% Class B $140.28 -- -- -- 8.26%
All contract charges -- 69 $12,100 1.88% --
EQ/INVESCO GLOBAL REAL ESTATE
2018 Lowest contract charge 0.00% Class B(f)(l) $ 16.47 -- -- -- (0.72)%
Highest contract charge 0.90% Class B(f)(l) $152.23 -- -- -- (0.92)%
All contract charges -- 449 $36,366 0.56% --
EQ/INVESCO INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B(f)(m) $ 14.21 -- -- -- (5.01)%
Highest contract charge 0.90% Class B(f)(m) $131.36 -- -- -- (5.20)%
All contract charges -- 526 $32,100 0.22% --
EQ/IVY ENERGY
2018 Lowest contract charge 0.00% Class B(f)(n) $ 7.26 -- -- -- (31.51)%
Highest contract charge 0.90% Class B(f)(n) $ 67.13 -- -- -- (31.59)%
All contract charges -- 250 $10,239 0.10% --
EQ/IVY MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B(f)(o) $ 23.22 -- -- -- (9.37)%
Highest contract charge 0.90% Class B(f)(o) $214.67 -- -- -- (9.51)%
All contract charges -- 260 $33,196 0.01% --
EQ/IVY SCIENCE AND TECHNOLOGY
2018 Lowest contract charge 0.00% Class B(f)(p) $169.19 -- -- -- (11.81)%
Highest contract charge 0.90% Class B(f)(p) $160.77 -- -- -- (11.96)%
All contract charges -- 257 $32,653 0.00% --
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
Highest contract charge 0.00% Class A $350.51 -- -- -- (15.40)%
All contract charges -- 100 $ 6,391 1.03% --
2017 Lowest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
Highest contract charge 0.00% Class A $414.32 -- -- -- 17.72%
All contract charges -- 41 $ 4,807 0.86% --
2016 Lowest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
Highest contract charge 0.00% Class A $351.95 -- -- -- 21.53%
All contract charges -- 32 $ 3,509 1.05% --
2015 Lowest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
Highest contract charge 0.00% Class A $289.59 -- -- -- (2.25)%
All contract charges -- 30 $ 2,225 0.70% --
2014 Lowest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
Highest contract charge 0.00% Class A $296.27 -- -- -- 14.37%
All contract charges -- 21 $ 1,687 1.08% --
|
FSA-140
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/JPMORGAN VALUE OPPORTUNITIES
2018 Lowest contract charge 0.00% Class B $327.29 -- -- -- (15.40)%
Highest contract charge 0.90% Class B $269.06 -- -- -- (16.17)%
All contract charges -- 127 $ 37,048 1.03% --
2017 Lowest contract charge 0.00% Class B $386.87 -- -- -- 17.72%
Highest contract charge 0.90% Class B $320.95 -- -- -- 16.66%
All contract charges -- 131 $ 45,408 0.86% --
2016 Lowest contract charge 0.00% Class B $328.64 -- -- -- 21.53%
Highest contract charge 0.90% Class B $275.11 -- -- -- 20.44%
All contract charges -- 115 $ 34,289 1.05% --
2015 Lowest contract charge 0.00% Class B $270.42 -- -- -- (2.28)%
Highest contract charge 0.90% Class B $228.43 -- -- -- (3.16)%
All contract charges -- 121 $ 29,513 0.70% --
2014 Lowest contract charge 0.00% Class B $276.74 -- -- -- 14.38%
Highest contract charge 0.90% Class B $235.89 -- -- -- 13.35%
All contract charges -- 124 $ 30,663 1.08% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class A $442.02 -- -- -- (2.26)%
Highest contract charge 0.60% Class A $290.81 -- -- -- (2.85)%
All contract charges -- 92 $ 19,274 0.63% --
2017 Lowest contract charge 0.00% Class A $452.25 -- -- -- 29.22%
Highest contract charge 0.60% Class A $299.34 -- -- -- 28.44%
All contract charges -- 86 $ 20,954 0.77% --
2016 Lowest contract charge 0.00% Class A $349.98 -- -- -- 6.34%
Highest contract charge 0.60% Class A $233.05 -- -- -- 5.71%
All contract charges -- 82 $ 16,601 1.01% --
2015 Lowest contract charge 0.00% Class A $329.10 -- -- -- 4.86%
Highest contract charge 0.60% Class A $220.46 -- -- -- 4.23%
All contract charges -- 77 $ 16,461 0.87% --
2014 Lowest contract charge 0.00% Class A $313.85 -- -- -- 12.24%
Highest contract charge 0.60% Class A $211.51 -- -- -- 11.57%
All contract charges -- 67 $ 15,886 0.91% --
EQ/LARGE CAP GROWTH INDEX
2018 Lowest contract charge 0.00% Class B $219.96 -- -- -- (2.26)%
Highest contract charge 0.90% Class B $184.28 -- -- -- (3.15)%
All contract charges -- 644 $128,927 0.63% --
2017 Lowest contract charge 0.00% Class B $225.05 -- -- -- 29.22%
Highest contract charge 0.90% Class B $190.27 -- -- -- 28.07%
All contract charges -- 680 $139,563 0.77% --
2016 Lowest contract charge 0.00% Class B $174.16 -- -- -- 6.34%
Highest contract charge 0.90% Class B $148.57 -- -- -- 5.39%
All contract charges -- 713 $113,687 1.01% --
2015 Lowest contract charge 0.00% Class B $163.77 -- -- -- 4.87%
Highest contract charge 0.90% Class B $140.97 -- -- -- 3.92%
All contract charges -- 764 $114,945 0.87% --
2014 Lowest contract charge 0.00% Class B $156.17 -- -- -- 12.24%
Highest contract charge 0.90% Class B $135.65 -- -- -- 11.22%
All contract charges -- 805 $115,779 0.91% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class A $108.69 -- -- -- (8.89)%
Highest contract charge 0.90% Class A $ 97.78 -- -- -- (9.71)%
All contract charges -- 106 $ 10,979 1.99% --
2017 Lowest contract charge 0.00% Class A $119.30 -- -- -- 13.01%
Highest contract charge 0.90% Class A $108.30 -- -- -- 11.98%
All contract charges -- 122 $ 13,848 1.94% --
|
FSA-141
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/LARGE CAP VALUE INDEX (CONTINUED)
2016 Lowest contract charge 0.00% Class A $105.57 -- -- -- 16.47%
Highest contract charge 0.90% Class A $ 96.71 -- -- -- 15.43%
All contract charges -- 125 $ 12,655 2.17% --
2015 Lowest contract charge 0.00% Class A $ 90.64 -- -- -- (4.43)%
Highest contract charge 0.90% Class A $ 83.78 -- -- -- (5.29)%
All contract charges -- 114 $ 10,014 1.96% --
2014 Lowest contract charge 0.00% Class A $ 94.84 -- -- -- 12.62%
Highest contract charge 0.90% Class A $ 88.46 -- -- -- 11.61%
All contract charges -- 112 $ 10,362 1.62% --
EQ/LARGE CAP VALUE INDEX
2018 Lowest contract charge 0.00% Class B $125.20 -- -- -- (8.89)%
Highest contract charge 0.60% Class B $100.13 -- -- -- (9.43)%
All contract charges -- 114 $ 13,704 1.99% --
2017 Lowest contract charge 0.00% Class B $137.42 -- -- -- 13.00%
Highest contract charge 0.60% Class B $110.56 -- -- -- 12.32%
All contract charges -- 115 $ 15,123 1.94% --
2016 Lowest contract charge 0.00% Class B $121.61 -- -- -- 16.47%
Highest contract charge 0.60% Class B $ 98.43 -- -- -- 15.77%
All contract charges -- 105 $ 12,174 2.17% --
2015 Lowest contract charge 0.00% Class B $104.41 -- -- -- (4.43)%
Highest contract charge 0.60% Class B $ 85.02 -- -- -- (5.01)%
All contract charges -- 97 $ 9,549 1.96% --
2014 Lowest contract charge 0.00% Class B $109.25 -- -- -- 12.63%
Highest contract charge 0.60% Class B $ 89.50 -- -- -- 11.96%
All contract charges -- 84 $ 8,774 1.62% --
EQ/LAZARD EMERGING MARKETS EQUITY
2018 Lowest contract charge 0.00% Class B(f)(q) $ 10.83 -- -- -- (1.37)%
Highest contract charge 0.90% Class B(f)(q) $100.12 -- -- -- (1.54)%
All contract charges -- 966 $ 52,589 0.17% --
EQ/MFS INTERNATIONAL GROWTH
2018 Lowest contract charge 0.00% Class B $225.18 -- -- -- (9.37)%
Highest contract charge 0.90% Class B $126.94 -- -- -- (10.19)%
All contract charges -- 281 $ 46,697 0.89% --
2017 Lowest contract charge 0.00% Class B $248.46 -- -- -- 32.05%
Highest contract charge 0.90% Class B $141.35 -- -- -- 30.88%
All contract charges -- 283 $ 51,192 0.84% --
2016 Lowest contract charge 0.00% Class B $188.15 -- -- -- 1.98%
Highest contract charge 0.90% Class B $108.00 -- -- -- 1.06%
All contract charges -- 283 $ 38,646 1.00% --
2015 Lowest contract charge 0.00% Class B $184.50 -- -- -- 0.20%
Highest contract charge 0.90% Class B $106.87 -- -- -- (0.71)%
All contract charges -- 285 $ 37,624 0.60% --
2014 Lowest contract charge 0.00% Class B $184.13 -- -- -- (5.01)%
Highest contract charge 0.90% Class B $107.63 -- -- -- (5.86)%
All contract charges -- 287 $ 37,394 0.94% --
EQ/MFS INTERNATIONAL VALUE
2018 Lowest contract charge 0.00% Class B(f)(r) $ 19.84 -- -- -- (4.34)%
Highest contract charge 0.90% Class B(f)(r) $183.36 -- -- -- (4.53)%
All contract charges -- 1,057 $102,837 0.00% --
EQ/MFS UTILITIES SERIES
2018 Lowest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
Highest contract charge 0.00% Class B(f)(s) $ 19.86 -- -- -- (2.65)%
All contract charges -- 102 $ 2,292 0.52% --
|
FSA-142
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class A $403.99 -- -- -- (11.69)%
Highest contract charge 0.60% Class A $273.70 -- -- -- (12.23)%
All contract charges -- 202 $ 33,764 1.08% --
2017 Lowest contract charge 0.00% Class A $457.47 -- -- -- 15.48%
Highest contract charge 0.60% Class A $311.82 -- -- -- 14.79%
All contract charges -- 168 $ 38,774 0.93% --
2016 Lowest contract charge 0.00% Class A $396.14 -- -- -- 19.91%
Highest contract charge 0.60% Class A $271.64 -- -- -- 19.19%
All contract charges -- 149 $ 32,505 1.09% --
2015 Lowest contract charge 0.00% Class A $330.36 -- -- -- (2.86)%
Highest contract charge 0.60% Class A $227.90 -- -- -- (3.44)%
All contract charges -- 141 $ 28,395 0.86% --
2014 Lowest contract charge 0.00% Class A $340.09 -- -- -- 8.99%
Highest contract charge 0.60% Class A $236.02 -- -- -- 8.34%
All contract charges -- 129 $ 29,901 0.80% --
EQ/MID CAP INDEX
2018 Lowest contract charge 0.00% Class B $258.04 -- -- -- (11.69)%
Highest contract charge 0.90% Class B $218.63 -- -- -- (12.49)%
All contract charges -- 417 $100,436 1.08% --
2017 Lowest contract charge 0.00% Class B $292.20 -- -- -- 15.48%
Highest contract charge 0.90% Class B $249.83 -- -- -- 14.44%
All contract charges -- 432 $118,329 0.93% --
2016 Lowest contract charge 0.00% Class B $253.03 -- -- -- 19.91%
Highest contract charge 0.90% Class B $218.30 -- -- -- 18.84%
All contract charges -- 400 $ 94,440 1.09% --
2015 Lowest contract charge 0.00% Class B $211.01 -- -- -- (2.86)%
Highest contract charge 0.90% Class B $183.70 -- -- -- (3.73)%
All contract charges -- 419 $ 82,531 0.86% --
2014 Lowest contract charge 0.00% Class B $217.22 -- -- -- 8.99%
Highest contract charge 0.90% Class B $190.82 -- -- -- 8.01%
All contract charges -- 427 $ 86,668 0.80% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class A $174.96 -- -- -- 1.27%
Highest contract charge 0.90% Class A $149.35 -- -- -- 0.36%
All contract charges -- 1,469 $101,491 1.25% --
2017 Lowest contract charge 0.00% Class A $172.76 -- -- -- 0.40%
Highest contract charge 0.90% Class A $148.82 -- -- -- (0.50)%
All contract charges -- 1,389 $100,524 0.39% --
2016 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $149.57 -- -- -- (0.89)%
All contract charges -- 1,609 $112,607 0.00% --
2015 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $150.92 -- -- -- (0.90)%
All contract charges -- 1,459 $116,349 0.00% --
2014 Lowest contract charge 0.00% Class A $172.07 -- -- -- --
Highest contract charge 0.90% Class A $152.29 -- -- -- (0.90)%
All contract charges -- 1,156 $125,159 0.00% --
EQ/MONEY MARKET
2018 Lowest contract charge 0.00% Class B $133.70 -- -- -- 1.27%
Highest contract charge 0.60% Class B $124.25 -- -- -- 0.66%
All contract charges -- 331 $ 42,439 1.25% --
2017 Lowest contract charge 0.00% Class B $132.02 -- -- -- 0.40%
Highest contract charge 0.60% Class B $123.43 -- -- -- (0.20)%
All contract charges -- 418 $ 53,555 0.39% --
|
FSA-143
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/MONEY MARKET (CONTINUED)
2016 Lowest contract charge 0.00% Class B $131.49 -- -- -- --
Highest contract charge 0.60% Class B $123.68 -- -- -- (0.59)%
All contract charges -- 360 $45,810 0.00% --
2015 Lowest contract charge 0.00% Class B $131.49 -- -- -- (0.01)%
Highest contract charge 0.60% Class B $124.42 -- -- -- (0.60)%
All contract charges -- 343 $43,876 0.00% --
2014 Lowest contract charge 0.00% Class B $131.50 -- -- -- 0.01%
Highest contract charge 0.60% Class B $125.17 -- -- -- (0.60)%
All contract charges -- 330 $42,162 0.00% --
EQ/PIMCO REAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(t) $123.20 -- -- -- 0.40%
Highest contract charge 0.90% Class B(f)(t) $113.89 -- -- -- 0.23%
All contract charges -- 305 $24,169 0.46% --
EQ/PIMCO TOTAL RETURN
2018 Lowest contract charge 0.00% Class B(f)(u) $129.93 -- -- -- 1.75%
Highest contract charge 0.90% Class B(f)(u) $120.11 -- -- -- 1.57%
All contract charges -- 735 $68,223 0.69% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class A $121.24 -- -- -- 0.97%
Highest contract charge 0.90% Class A $109.07 -- -- -- 0.05%
All contract charges -- 136 $15,866 1.99% --
2017 Lowest contract charge 0.00% Class A $120.08 -- -- -- 1.88%
Highest contract charge 0.90% Class A $109.02 -- -- -- 0.97%
All contract charges -- 138 $15,815 1.32% --
2016 Lowest contract charge 0.00% Class A $117.86 -- -- -- 1.99%
Highest contract charge 0.90% Class A $107.97 -- -- -- 1.08%
All contract charges -- 125 $14,261 1.00% --
2015 Lowest contract charge 0.00% Class A $115.56 -- -- -- (0.28)%
Highest contract charge 0.90% Class A $106.82 -- -- -- (1.17)%
All contract charges -- 145 $16,282 0.47% --
2014 Lowest contract charge 0.00% Class A $115.88 -- -- -- (0.09)%
Highest contract charge 0.90% Class A $108.09 -- -- -- (0.99)%
All contract charges -- 156 $17,494 0.38% --
EQ/PIMCO ULTRA SHORT BOND
2018 Lowest contract charge 0.00% Class B $124.24 -- -- -- 0.95%
Highest contract charge 0.60% Class B $112.39 -- -- -- 0.35%
All contract charges -- 145 $17,517 1.99% --
2017 Lowest contract charge 0.00% Class B $123.07 -- -- -- 1.90%
Highest contract charge 0.60% Class B $112.00 -- -- -- 1.28%
All contract charges -- 146 $17,454 1.32% --
2016 Lowest contract charge 0.00% Class B $120.78 -- -- -- 1.98%
Highest contract charge 0.60% Class B $110.58 -- -- -- 1.38%
All contract charges -- 142 $16,743 1.00% --
2015 Lowest contract charge 0.00% Class B $118.43 -- -- -- (0.27)%
Highest contract charge 0.60% Class B $109.08 -- -- -- (0.87)%
All contract charges -- 153 $17,504 0.47% --
2014 Lowest contract charge 0.00% Class B $118.75 -- -- -- (0.09)%
Highest contract charge 0.60% Class B $110.04 -- -- -- (0.69)%
All contract charges -- 165 $19,037 0.38% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class A $257.31 -- -- -- 0.12%
Highest contract charge 0.90% Class A $193.19 -- -- -- (0.79)%
All contract charges -- 163 $22,879 1.68% --
2017 Lowest contract charge 0.00% Class A $257.00 -- -- -- 1.39%
Highest contract charge 0.90% Class A $194.72 -- -- -- 0.48%
All contract charges -- 173 $25,722 1.17% --
|
FSA-144
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/QUALITY BOND PLUS (CONTINUED)
2016 Lowest contract charge 0.00% Class A $253.48 -- -- -- 1.18%
Highest contract charge 0.90% Class A $193.79 -- -- -- 0.27%
All contract charges -- 203 $36,245 1.15% --
2015 Lowest contract charge 0.00% Class A $250.53 -- -- -- 0.22%
Highest contract charge 0.90% Class A $193.27 -- -- -- (0.68)%
All contract charges -- 208 $38,216 1.06% --
2014 Lowest contract charge 0.00% Class A $249.97 -- -- -- 2.90%
Highest contract charge 0.90% Class A $194.59 -- -- -- 1.98%
All contract charges -- 222 $41,887 0.99% --
EQ/QUALITY BOND PLUS
2018 Lowest contract charge 0.00% Class B $173.62 -- -- -- 0.12%
Highest contract charge 0.60% Class B $154.00 -- -- -- (0.48)%
All contract charges -- 116 $18,748 1.68% --
2017 Lowest contract charge 0.00% Class B $173.41 -- -- -- 1.39%
Highest contract charge 0.60% Class B $154.75 -- -- -- 0.79%
All contract charges -- 122 $19,553 1.17% --
2016 Lowest contract charge 0.00% Class B $171.04 -- -- -- 1.18%
Highest contract charge 0.60% Class B $153.54 -- -- -- 0.57%
All contract charges -- 129 $20,541 1.15% --
2015 Lowest contract charge 0.00% Class B $169.05 -- -- -- 0.23%
Highest contract charge 0.60% Class B $152.67 -- -- -- (0.38)%
All contract charges -- 132 $20,722 1.06% --
2014 Lowest contract charge 0.00% Class B $168.67 -- -- -- 2.90%
Highest contract charge 0.60% Class B $153.25 -- -- -- 2.29%
All contract charges -- 137 $21,519 0.99% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class A $457.91 -- -- -- (11.31)%
Highest contract charge 0.90% Class A $349.48 -- -- -- (12.11)%
All contract charges -- 219 $47,905 0.96% --
2017 Lowest contract charge 0.00% Class A $516.30 -- -- -- 14.01%
Highest contract charge 0.90% Class A $397.65 -- -- -- 12.99%
All contract charges -- 211 $56,792 1.08% --
2016 Lowest contract charge 0.00% Class A $452.86 -- -- -- 20.53%
Highest contract charge 0.90% Class A $351.94 -- -- -- 19.45%
All contract charges -- 182 $49,667 1.17% --
2015 Lowest contract charge 0.00% Class A $375.73 -- -- -- (4.57)%
Highest contract charge 0.90% Class A $294.64 -- -- -- (5.43)%
All contract charges -- 175 $43,006 0.92% --
2014 Lowest contract charge 0.00% Class A $393.71 -- -- -- 4.85%
Highest contract charge 0.90% Class A $311.55 -- -- -- 3.91%
All contract charges -- 163 $45,618 0.80% --
EQ/SMALL COMPANY INDEX
2018 Lowest contract charge 0.00% Class B $332.45 -- -- -- (11.31)%
Highest contract charge 0.90% Class B $305.45 -- -- -- (12.11)%
All contract charges -- 125 $41,433 0.96% --
2017 Lowest contract charge 0.00% Class B $374.84 -- -- -- 14.01%
Highest contract charge 0.90% Class B $347.55 -- -- -- 12.99%
All contract charges -- 120 $44,655 1.08% --
2016 Lowest contract charge 0.00% Class B $328.79 -- -- -- 20.53%
Highest contract charge 0.90% Class B $307.60 -- -- -- 19.45%
All contract charges -- 111 $36,249 1.17% --
2015 Lowest contract charge 0.00% Class B $272.79 -- -- -- (4.57)%
Highest contract charge 0.90% Class B $257.52 -- -- -- (5.43)%
All contract charges -- 104 $28,328 0.92% --
2014 Lowest contract charge 0.00% Class B $285.84 -- -- -- 4.85%
Highest contract charge 0.90% Class B $272.30 -- -- -- 3.90%
All contract charges -- 99 $28,159 0.80% --
|
FSA-145
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class A $250.49 -- -- -- (1.61)%
Highest contract charge 0.60% Class A $233.23 -- -- -- (2.21)%
All contract charges -- 353 $ 15,577 0.00% --
2017 Lowest contract charge 0.00% Class A $254.60 -- -- -- 33.37%
Highest contract charge 0.60% Class A $238.50 -- -- -- 32.57%
All contract charges -- 229 $ 10,385 0.00% --
2016 Lowest contract charge 0.00% Class A $190.90 -- -- -- 1.34%
Highest contract charge 0.60% Class A $179.91 -- -- -- 0.74%
All contract charges -- 164 $ 5,664 0.00% --
2015 Lowest contract charge 0.00% Class A $188.38 -- -- -- 10.23%
Highest contract charge 0.60% Class A $178.59 -- -- -- 9.56%
All contract charges -- 125 $ 4,398 0.00% --
2014 Lowest contract charge 0.00% Class A $170.90 -- -- -- 8.64%
Highest contract charge 0.60% Class A $163.01 -- -- -- 7.99%
All contract charges -- 55 $ 2,411 0.00% --
EQ/T. ROWE PRICE GROWTH STOCK
2018 Lowest contract charge 0.00% Class B $293.39 -- -- -- (1.62)%
Highest contract charge 0.90% Class B $222.42 -- -- -- (2.51)%
All contract charges -- 390 $ 98,799 0.00% --
2017 Lowest contract charge 0.00% Class B $298.21 -- -- -- 33.37%
Highest contract charge 0.90% Class B $228.14 -- -- -- 32.17%
All contract charges -- 394 $101,528 0.00% --
2016 Lowest contract charge 0.00% Class B $223.60 -- -- -- 1.34%
Highest contract charge 0.90% Class B $172.61 -- -- -- 0.43%
All contract charges -- 375 $ 72,640 0.00% --
2015 Lowest contract charge 0.00% Class B $220.65 -- -- -- 10.23%
Highest contract charge 0.90% Class B $171.87 -- -- -- 9.23%
All contract charges -- 416 $ 79,230 0.00% --
2014 Lowest contract charge 0.00% Class B $200.18 -- -- -- 8.64%
Highest contract charge 0.90% Class B $157.34 -- -- -- 7.66%
All contract charges -- 360 $ 62,179 0.00% --
EQ/T. ROWE PRICE HEALTH SCIENCES
2018 Lowest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
Highest contract charge 0.00% Class B(f)(v) $ 39.13 -- -- -- (9.44)%
All contract charges -- 134 $ 7,851 0.00% --
EQ/UBS GROWTH & INCOME
2018 Lowest contract charge 0.00% Class B $240.25 -- -- -- (13.42)%
Highest contract charge 0.90% Class B $150.36 -- -- -- (14.20)%
All contract charges -- 60 $ 11,348 0.32% --
2017 Lowest contract charge 0.00% Class B $277.48 -- -- -- 21.28%
Highest contract charge 0.90% Class B $175.24 -- -- -- 20.19%
All contract charges -- 76 $ 16,096 0.29% --
2016 Lowest contract charge 0.00% Class B $228.79 -- -- -- 10.14%
Highest contract charge 0.90% Class B $145.80 -- -- -- 9.16%
All contract charges -- 63 $ 11,384 0.78% --
2015 Lowest contract charge 0.00% Class B $207.72 -- -- -- (1.42)%
Highest contract charge 0.90% Class B $133.57 -- -- -- (2.31)%
All contract charges -- 75 $ 12,167 0.58% --
2014 Lowest contract charge 0.00% Class B $210.72 -- -- -- 14.44%
Highest contract charge 0.90% Class B $136.73 -- -- -- 13.41%
All contract charges -- 67 $ 11,001 0.65% --
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
Highest contract charge 0.00% Service Class 2 $250.34 -- -- -- (7.88)%
All contract charges -- 14 $ 1,145 0.99% --
|
FSA-146
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP ASSET MANAGER: GROWTH PORTFOLIO (CONTINUED)
2017 Lowest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
Highest contract charge 0.00% Service Class 2 $271.75 -- -- -- 18.49%
All contract charges -- 15 $ 1,590 1.05% --
2016 Lowest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
Highest contract charge 0.00% Service Class 2 $229.35 -- -- -- 2.18%
All contract charges -- 14 $ 1,383 1.33% --
2015 Lowest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
Highest contract charge 0.00% Service Class 2 $224.46 -- -- -- (0.19)%
All contract charges -- 15 $ 1,264 0.98% --
2014 Lowest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
Highest contract charge 0.00% Service Class 2 $224.88 -- -- -- 5.55%
All contract charges -- 17 $ 1,482 0.81% --
FIDELITY(R)/ /VIP EQUITY-INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
Highest contract charge 0.00% Service Class 2 $300.33 -- -- -- (8.54)%
All contract charges -- 47 $ 1,605 2.14% --
2017 Lowest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
Highest contract charge 0.00% Service Class 2 $328.36 -- -- -- 12.65%
All contract charges -- 47 $ 1,798 1.52% --
2016 Lowest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
Highest contract charge 0.00% Service Class 2 $291.49 -- -- -- 17.71%
All contract charges -- 42 $ 1,580 2.59% --
2015 Lowest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
Highest contract charge 0.00% Service Class 2 $247.63 -- -- -- (4.24)%
All contract charges -- 30 $ 1,051 3.14% --
2014 Lowest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
Highest contract charge 0.00% Service Class 2 $258.59 -- -- -- 8.48%
All contract charges -- 25 $ 1,007 2.47% --
FIDELITY(R)/ /VIP GOVERNMENT MONEY MARKET PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
Highest contract charge 0.00% Service Class 2 $102.14 -- -- -- 1.39%
All contract charges -- 105 $ 1,467 1.43% --
2017 Lowest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
Highest contract charge 0.00% Service Class 2 $100.74 -- -- -- 0.43%
All contract charges -- 96 $ 1,089 0.43% --
2016 Lowest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.31 -- -- -- 0.01%
All contract charges -- 73 $ 1,332 0.02% --
2015 Lowest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.30 -- -- -- 0.01%
All contract charges -- 67 $ 997 0.01% --
2014 Lowest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
Highest contract charge 0.00% Service Class 2 $100.29 -- -- -- 0.01%
All contract charges -- 73 $ 999 0.01% --
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $299.00 -- -- -- (9.19)%
Highest contract charge 0.90% Service Class 2 $203.46 -- -- -- (10.01)%
All contract charges -- 88 $ 8,795 0.19% --
2017 Lowest contract charge 0.00% Service Class 2 $329.27 -- -- -- 16.61%
Highest contract charge 0.90% Service Class 2 $226.10 -- -- -- 15.56%
All contract charges -- 85 $10,171 1.04% --
2016 Lowest contract charge 0.00% Service Class 2 $282.36 -- -- -- 15.81%
Highest contract charge 0.90% Service Class 2 $195.65 -- -- -- 14.77%
All contract charges -- 78 $ 8,609 1.67% --
|
FSA-147
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP GROWTH & INCOME PORTFOLIO (CONTINUED)
2015 Lowest contract charge 0.00% Service Class 2 $243.82 -- -- -- (2.54)%
Highest contract charge 0.90% Service Class 2 $170.47 -- -- -- (3.42)%
All contract charges -- 75 $ 7,288 1.89% --
2014 Lowest contract charge 0.00% Service Class 2 $250.17 -- -- -- 10.23%
Highest contract charge 0.90% Service Class 2 $176.50 -- -- -- 9.23%
All contract charges -- 68 $ 7,537 1.76% --
FIDELITY(R)/ /VIP HIGH INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
Highest contract charge 0.00% Service Class 2 $253.48 -- -- -- (3.63)%
All contract charges -- 60 $ 2,637 5.00% --
2017 Lowest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
Highest contract charge 0.00% Service Class 2 $263.02 -- -- -- 6.91%
All contract charges -- 78 $ 4,071 5.22% --
2016 Lowest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
Highest contract charge 0.00% Service Class 2 $246.01 -- -- -- 14.17%
All contract charges -- 72 $ 3,626 5.77% --
2015 Lowest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
Highest contract charge 0.00% Service Class 2 $215.48 -- -- -- (3.86)%
All contract charges -- 70 $ 3,378 5.88% --
2014 Lowest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
Highest contract charge 0.00% Service Class 2 $224.14 -- -- -- 0.90%
All contract charges -- 72 $ 5,043 5.13% --
FIDELITY(R)/ /VIP INVESTMENT GRADE BOND PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
Highest contract charge 0.00% Service Class 2 $176.56 -- -- -- (0.79)%
All contract charges -- 771 $36,813 2.34% --
2017 Lowest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
Highest contract charge 0.00% Service Class 2 $177.96 -- -- -- 3.99%
All contract charges -- 588 $16,362 1.80% --
2016 Lowest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
Highest contract charge 0.00% Service Class 2 $171.13 -- -- -- 4.47%
All contract charges -- 449 $ 9,201 2.76% --
2015 Lowest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
Highest contract charge 0.00% Service Class 2 $163.80 -- -- -- (0.85)%
All contract charges -- 385 $ 7,133 2.64% --
2014 Lowest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
Highest contract charge 0.00% Service Class 2 $165.20 -- -- -- 5.62%
All contract charges -- 262 $ 8,319 2.10% --
FIDELITY(R)/ /VIP MID CAP PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $495.85 -- -- -- (14.77)%
Highest contract charge 0.90% Service Class 2 $174.36 -- -- -- (15.54)%
All contract charges -- 289 $28,415 0.41% --
2017 Lowest contract charge 0.00% Service Class 2 $581.78 -- -- -- 20.53%
Highest contract charge 0.90% Service Class 2 $206.45 -- -- -- 19.45%
All contract charges -- 238 $31,628 0.51% --
2016 Lowest contract charge 0.00% Service Class 2 $482.67 -- -- -- 11.92%
Highest contract charge 0.90% Service Class 2 $172.83 -- -- -- 10.92%
All contract charges -- 197 $24,006 0.34% --
2015 Lowest contract charge 0.00% Service Class 2 $431.25 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class 2 $155.81 -- -- -- (2.52)%
All contract charges -- 171 $20,947 0.18% --
2014 Lowest contract charge 0.00% Service Class 2 $438.39 -- -- -- 6.03%
Highest contract charge 0.90% Service Class 2 $159.83 -- -- -- 5.08%
All contract charges -- 160 $32,742 0.02% --
|
FSA-148
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FIDELITY(R)/ /VIP VALUE PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
Highest contract charge 0.00% Service Class 2 $294.80 -- -- -- (14.08)%
All contract charges -- 36 $ 1,304 0.96% --
2017 Lowest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
Highest contract charge 0.00% Service Class 2 $343.12 -- -- -- 15.36%
All contract charges -- 15 $ 808 1.08% --
2016 Lowest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
Highest contract charge 0.00% Service Class 2 $297.43 -- -- -- 11.71%
All contract charges -- 12 $ 732 1.07% --
2015 Lowest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
Highest contract charge 0.00% Service Class 2 $266.25 -- -- -- (0.97)%
All contract charges -- 12 $ 1,247 1.12% --
2014 Lowest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
Highest contract charge 0.00% Service Class 2 $268.87 -- -- -- 11.11%
All contract charges -- 9 $ 1,519 1.19% --
FIDELITY(R)/ /VIP VALUE STRATEGIES PORTFOLIO
2018 Lowest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
Highest contract charge 0.00% Service Class 2 $354.46 -- -- -- (17.50)%
All contract charges -- 7 $ 287 0.58% --
2017 Lowest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
Highest contract charge 0.00% Service Class 2 $429.63 -- -- -- 19.08%
All contract charges -- 6 $ 529 1.32% --
2016 Lowest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
Highest contract charge 0.00% Service Class 2 $360.78 -- -- -- 9.27%
All contract charges -- 3 $ 334 0.89% --
2015 Lowest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
Highest contract charge 0.00% Service Class 2 $330.17 -- -- -- (3.19)%
All contract charges -- 4 $ 333 0.90% --
2014 Lowest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
Highest contract charge 0.00% Service Class 2 $341.05 -- -- -- 6.51%
All contract charges -- 3 $ 323 0.74% --
FRANKLIN MUTUAL SHARES VIP FUND
2018 Lowest contract charge 0.00% Class 2 $173.91 -- -- -- (9.07)%
Highest contract charge 0.90% Class 2 $160.77 -- -- -- (9.89)%
All contract charges -- 85 $ 8,151 2.27% --
2017 Lowest contract charge 0.00% Class 2 $191.25 -- -- -- 8.35%
Highest contract charge 0.90% Class 2 $178.41 -- -- -- 7.37%
All contract charges -- 101 $10,881 2.25% --
2016 Lowest contract charge 0.00% Class 2 $176.51 -- -- -- 16.06%
Highest contract charge 0.90% Class 2 $166.16 -- -- -- 15.02%
All contract charges -- 95 $10,495 1.93% --
2015 Lowest contract charge 0.00% Class 2 $152.09 -- -- -- (4.94)%
Highest contract charge 0.90% Class 2 $144.46 -- -- -- (5.79)%
All contract charges -- 102 $10,352 3.16% --
2014 Lowest contract charge 0.00% Class 2 $159.99 -- -- -- 7.12%
Highest contract charge 0.90% Class 2 $153.34 -- -- -- 6.15%
All contract charges -- 99 $11,542 2.06% --
FRANKLIN SMALL CAP VALUE VIP FUND
2018 Lowest contract charge 0.00% Class 2 $193.81 -- -- -- (12.87)%
Highest contract charge 0.90% Class 2 $179.16 -- -- -- (13.67)%
All contract charges -- 214 $11,102 0.90% --
2017 Lowest contract charge 0.00% Class 2 $222.45 -- -- -- 10.65%
Highest contract charge 0.90% Class 2 $207.52 -- -- -- 9.66%
All contract charges -- 199 $12,256 0.51% --
|
FSA-149
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
FRANKLIN SMALL CAP VALUE VIP FUND (CONTINUED)
2016 Lowest contract charge 0.00% Class 2 $201.04 -- -- -- 30.18%
Highest contract charge 0.90% Class 2 $189.24 -- -- -- 29.02%
All contract charges -- 158 $11,113 0.69% --
2015 Lowest contract charge 0.00% Class 2 $154.43 -- -- -- (7.38)%
Highest contract charge 0.90% Class 2 $146.68 -- -- -- (8.22)%
All contract charges -- 118 $ 5,236 0.63% --
2014 Lowest contract charge 0.00% Class 2 $166.74 -- -- -- 0.57%
Highest contract charge 0.90% Class 2 $159.81 -- -- -- (0.34)%
All contract charges -- 99 $ 5,650 0.61% --
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
2018 Lowest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
Highest contract charge 0.00% Series II $187.25 -- -- -- (7.81)%
All contract charges -- 583 $13,523 2.25% --
2017 Lowest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
Highest contract charge 0.00% Series II $203.12 -- -- -- 8.35%
All contract charges -- 574 $14,465 1.49% --
2016 Lowest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
Highest contract charge 0.00% Series II $187.47 -- -- -- 14.53%
All contract charges -- 554 $13,211 1.55% --
2015 Lowest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
Highest contract charge 0.00% Series II $163.68 -- -- -- 1.82%
All contract charges -- 136 $ 3,477 1.62% --
2014 Lowest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
Highest contract charge 0.00% Series II $160.76 -- -- -- 12.54%
All contract charges -- 49 $ 2,094 1.14% --
INVESCO V.I. MID CAP CORE EQUITY FUND
2018 Lowest contract charge 0.00% Series II $159.75 -- -- -- (11.60)%
Highest contract charge 0.90% Series II $147.68 -- -- -- (12.40)%
All contract charges -- 46 $ 3,493 0.13% --
2017 Lowest contract charge 0.00% Series II $180.71 -- -- -- 14.65%
Highest contract charge 0.90% Series II $168.58 -- -- -- 13.62%
All contract charges -- 37 $ 3,804 0.31% --
2016 Lowest contract charge 0.00% Series II $157.62 -- -- -- 13.16%
Highest contract charge 0.90% Series II $148.37 -- -- -- 12.15%
All contract charges -- 31 $ 3,382 0.00% --
2015 Lowest contract charge 0.00% Series II $139.29 -- -- -- (4.27)%
Highest contract charge 0.90% Series II $132.30 -- -- -- (5.14)%
All contract charges -- 29 $ 3,003 0.10% --
2014 Lowest contract charge 0.00% Series II $145.51 -- -- -- 4.17%
Highest contract charge 0.90% Series II $139.47 -- -- -- 3.23%
All contract charges -- 27 $ 3,519 0.00% --
INVESCO V.I. SMALL CAP EQUITY FUND
2018 Lowest contract charge 0.00% Series II $175.15 -- -- -- (15.27)%
Highest contract charge 0.90% Series II $161.91 -- -- -- (16.04)%
All contract charges -- 49 $ 5,092 0.00% --
2017 Lowest contract charge 0.00% Series II $206.72 -- -- -- 13.73%
Highest contract charge 0.90% Series II $192.84 -- -- -- 12.71%
All contract charges -- 39 $ 5,917 0.00% --
2016 Lowest contract charge 0.00% Series II $181.77 -- -- -- 11.84%
Highest contract charge 0.90% Series II $171.10 -- -- -- 10.83%
All contract charges -- 32 $ 4,613 0.00% --
2015 Lowest contract charge 0.00% Series II $162.53 -- -- -- (5.74)%
Highest contract charge 0.90% Series II $154.38 -- -- -- (6.59)%
All contract charges -- 34 $ 4,376 0.00% --
2014 Lowest contract charge 0.00% Series II $172.43 -- -- -- 2.08%
Highest contract charge 0.90% Series II $165.27 -- -- -- 1.17%
All contract charges -- 30 $ 4,096 0.00% --
|
FSA-150
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
IVY VIP GLOBAL EQUITY INCOME
2018 Lowest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
Highest contract charge 0.00% Class II $175.70 -- -- -- (11.68)%
All contract charges -- 29 $ 521 1.72% --
2017 Lowest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
Highest contract charge 0.00% Class II $198.93 -- -- -- 15.56%
All contract charges -- 30 $ 1,020 1.15% --
2016 Lowest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
Highest contract charge 0.00% Class II $172.14 -- -- -- 6.95%
All contract charges -- 26 $ 744 1.39% --
2015 Lowest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
Highest contract charge 0.00% Class II $160.95 -- -- -- (2.06)%
All contract charges -- 25 $ 524 1.27% --
2014 Lowest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
Highest contract charge 0.00% Class II $164.33 -- -- -- 9.84%
All contract charges -- 27 $ 701 1.13% --
IVY VIP HIGH INCOME
2018 Lowest contract charge 0.00% Class II $119.67 -- -- -- (2.11)%
Highest contract charge 0.90% Class II $113.71 -- -- -- (3.00)%
All contract charges -- 722 $35,498 6.23% --
2017 Lowest contract charge 0.00% Class II $122.25 -- -- -- 6.68%
Highest contract charge 0.90% Class II $117.23 -- -- -- 5.73%
All contract charges -- 556 $32,857 5.40% --
2016 Lowest contract charge 0.00% Class II $114.60 -- -- -- 16.19%
Highest contract charge 0.90% Class II $110.88 -- -- -- 15.14%
All contract charges -- 463 $28,761 6.74% --
2015 Lowest contract charge 0.00% Class II $ 98.63 -- -- -- (6.51)%
Highest contract charge 0.90% Class II $ 96.30 -- -- -- (7.35)%
All contract charges -- 369 $20,390 6.02% --
2014 Lowest contract charge 0.00% Class II $105.50 -- -- -- 1.91%
Highest contract charge 0.90% Class II $103.94 -- -- -- 0.99%
All contract charges -- 230 $17,934 4.14% --
IVY VIP SMALL CAP GROWTH
2018 Lowest contract charge 0.00% Class II $192.42 -- -- -- (4.11)%
Highest contract charge 0.90% Class II $177.87 -- -- -- (4.98)%
All contract charges -- 98 $12,355 0.38% --
2017 Lowest contract charge 0.00% Class II $200.67 -- -- -- 23.12%
Highest contract charge 0.90% Class II $187.20 -- -- -- 22.01%
All contract charges -- 81 $12,406 0.00% --
2016 Lowest contract charge 0.00% Class II $162.99 -- -- -- 2.91%
Highest contract charge 0.90% Class II $153.43 -- -- -- 1.99%
All contract charges -- 72 $ 8,691 0.00% --
2015 Lowest contract charge 0.00% Class II $158.38 -- -- -- 1.88%
Highest contract charge 0.90% Class II $150.43 -- -- -- 0.97%
All contract charges -- 75 $ 8,951 0.00% --
2014 Lowest contract charge 0.00% Class II $155.45 -- -- -- 1.59%
Highest contract charge 0.90% Class II $148.99 -- -- -- 0.68%
All contract charges -- 49 $ 5,917 0.00% --
MFS(R)/ /INVESTORS TRUST SERIES
2018 Lowest contract charge 0.00% Service Class $218.20 -- -- -- (5.71)%
Highest contract charge 0.90% Service Class $201.71 -- -- -- (6.56)%
All contract charges -- 14 $ 3,162 0.42% --
2017 Lowest contract charge 0.00% Service Class $231.41 -- -- -- 23.02%
Highest contract charge 0.90% Service Class $215.88 -- -- -- 21.92%
All contract charges -- 18 $ 4,027 0.57% --
|
FSA-151
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MFS(R)/ /INVESTORS TRUST SERIES (CONTINUED)
2016 Lowest contract charge 0.00% Service Class $188.10 -- -- -- 8.32%
Highest contract charge 0.80% Service Class $178.26 -- -- -- 7.45%
All contract charges -- 15 $ 2,618 0.57% --
2015 Lowest contract charge 0.00% Service Class $173.66 -- -- -- (0.05)%
Highest contract charge 0.80% Service Class $165.90 -- -- -- (0.84)%
All contract charges -- 13 $ 2,199 0.70% --
2014 Lowest contract charge 0.00% Service Class $173.74 -- -- -- 10.71%
Highest contract charge 0.80% Service Class $167.31 -- -- -- 9.83%
All contract charges -- 12 $ 2,089 0.80% --
MFS(R)/ /MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO
2018 Lowest contract charge 0.00% Service Class $243.20 -- -- -- 0.57%
Highest contract charge 0.90% Service Class $224.83 -- -- -- (0.33)%
All contract charges -- 26 $ 5,987 0.32% --
2017 Lowest contract charge 0.00% Service Class $241.81 -- -- -- 28.10%
Highest contract charge 0.90% Service Class $225.58 -- -- -- 26.95%
All contract charges -- 20 $ 4,741 0.41% --
2016 Lowest contract charge 0.00% Service Class $188.77 -- -- -- 5.84%
Highest contract charge 0.90% Service Class $177.69 -- -- -- 4.89%
All contract charges -- 19 $ 3,765 0.40% --
2015 Lowest contract charge 0.00% Service Class(b) $178.35 -- -- -- (1.63)%
Highest contract charge 0.90% Service Class(b) $169.40 -- -- -- (2.31)%
All contract charges -- 13 $ 2,155 0.46% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class A $390.01 -- -- -- (0.21)%
Highest contract charge 0.90% Class A $380.73 -- -- -- (1.11)%
All contract charges -- 442 $396,908 0.13% --
2017 Lowest contract charge 0.00% Class A $390.83 -- -- -- 30.35%
Highest contract charge 0.90% Class A $385.02 -- -- -- 29.18%
All contract charges -- 466 $423,844 0.16% --
2016 Lowest contract charge 0.00% Class A $299.83 -- -- -- 3.44%
Highest contract charge 0.90% Class A $298.04 -- -- -- 2.51%
All contract charges -- 498 $351,429 0.53% --
2015 Lowest contract charge 0.00% Class A $289.86 -- -- -- 3.99%
Highest contract charge 0.90% Class A $290.74 -- -- -- 3.06%
All contract charges -- 542 $373,360 0.16% --
2014 Lowest contract charge 0.00% Class A $278.73 -- -- -- 10.66%
Highest contract charge 0.90% Class A $282.12 -- -- -- 9.67%
All contract charges -- 585 $389,941 0.10% --
MULTIMANAGER AGGRESSIVE EQUITY
2018 Lowest contract charge 0.00% Class B $198.63 -- -- -- (0.21)%
Highest contract charge 0.60% Class B $177.24 -- -- -- (0.81)%
All contract charges -- 168 $ 31,185 0.13% --
2017 Lowest contract charge 0.00% Class B $199.05 -- -- -- 30.35%
Highest contract charge 0.60% Class B $178.69 -- -- -- 29.57%
All contract charges -- 175 $ 32,450 0.16% --
2016 Lowest contract charge 0.00% Class B $152.70 -- -- -- 3.43%
Highest contract charge 0.60% Class B $137.91 -- -- -- 2.82%
All contract charges -- 178 $ 25,303 0.53% --
2015 Lowest contract charge 0.00% Class B $147.63 -- -- -- 3.99%
Highest contract charge 0.60% Class B $134.13 -- -- -- 3.37%
All contract charges -- 194 $ 26,699 0.16% --
2014 Lowest contract charge 0.00% Class B $141.96 -- -- -- 10.66%
Highest contract charge 0.60% Class B $129.76 -- -- -- 10.00%
All contract charges -- 203 $ 27,000 0.10% --
|
FSA-152
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class A $178.30 -- -- -- (0.40)%
Highest contract charge 0.60% Class A $169.75 -- -- -- (1.00)%
All contract charges -- 187 $19,048 2.71% --
2017 Lowest contract charge 0.00% Class A $179.01 -- -- -- 3.00%
Highest contract charge 0.60% Class A $171.47 -- -- -- 2.38%
All contract charges -- 180 $20,013 2.08% --
2016 Lowest contract charge 0.00% Class A $173.80 -- -- -- 2.64%
Highest contract charge 0.60% Class A $167.48 -- -- -- 2.02%
All contract charges -- 169 $20,450 2.08% --
2015 Lowest contract charge 0.00% Class A $169.33 -- -- -- 0.12%
Highest contract charge 0.60% Class A $164.16 -- -- -- (0.47)%
All contract charges -- 159 $20,844 1.92% --
2014 Lowest contract charge 0.00% Class A $169.12 -- -- -- 3.75%
Highest contract charge 0.60% Class A $164.94 -- -- -- 3.13%
All contract charges -- 167 $22,443 2.07% --
MULTIMANAGER CORE BOND
2018 Lowest contract charge 0.00% Class B $183.79 -- -- -- (0.40)%
Highest contract charge 0.90% Class B $157.61 -- -- -- (1.30)%
All contract charges -- 236 $40,858 2.71% --
2017 Lowest contract charge 0.00% Class B $184.52 -- -- -- 3.00%
Highest contract charge 0.90% Class B $159.68 -- -- -- 2.08%
All contract charges -- 256 $44,615 2.08% --
2016 Lowest contract charge 0.00% Class B $179.14 -- -- -- 2.64%
Highest contract charge 0.90% Class B $156.43 -- -- -- 1.72%
All contract charges -- 292 $49,249 2.08% --
2015 Lowest contract charge 0.00% Class B $174.54 -- -- -- 0.13%
Highest contract charge 0.90% Class B $153.79 -- -- -- (0.77)%
All contract charges -- 304 $50,153 1.92% --
2014 Lowest contract charge 0.00% Class B $174.31 -- -- -- 3.74%
Highest contract charge 0.90% Class B $154.99 -- -- -- 2.81%
All contract charges -- 327 $53,881 2.07% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class A $457.16 -- -- -- (5.77)%
Highest contract charge 0.60% Class A $252.28 -- -- -- (6.34)%
All contract charges -- 25 $11,157 0.00% --
2017 Lowest contract charge 0.00% Class A $485.17 -- -- -- 26.67%
Highest contract charge 0.60% Class A $269.36 -- -- -- 25.91%
All contract charges -- 27 $12,687 0.00% --
2016 Lowest contract charge 0.00% Class A $383.02 -- -- -- 6.79%
Highest contract charge 0.60% Class A $213.93 -- -- -- 6.15%
All contract charges -- 28 $10,529 0.10% --
2015 Lowest contract charge 0.00% Class A $358.68 -- -- -- (1.51)%
Highest contract charge 0.60% Class A $201.54 -- -- -- (2.10)%
All contract charges -- 31 $10,804 0.00% --
2014 Lowest contract charge 0.00% Class A $364.19 -- -- -- 4.85%
Highest contract charge 0.60% Class A $205.87 -- -- -- 4.22%
All contract charges -- 33 $11,863 0.00% --
MULTIMANAGER MID CAP GROWTH
2018 Lowest contract charge 0.00% Class B $403.71 -- -- -- (5.77)%
Highest contract charge 0.90% Class B $223.50 -- -- -- (6.63)%
All contract charges -- 58 $15,468 0.00% --
2017 Lowest contract charge 0.00% Class B $428.45 -- -- -- 26.66%
Highest contract charge 0.90% Class B $239.36 -- -- -- 25.52%
All contract charges -- 60 $16,955 0.00% --
|
FSA-153
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER MID CAP GROWTH (CONTINUED)
2016 Lowest contract charge 0.00% Class B $338.26 -- -- -- 6.78%
Highest contract charge 0.90% Class B $190.69 -- -- -- 5.82%
All contract charges -- 88 $19,160 0.10% --
2015 Lowest contract charge 0.00% Class B $316.79 -- -- -- (1.52)%
Highest contract charge 0.90% Class B $180.20 -- -- -- (2.41)%
All contract charges -- 97 $19,711 0.00% --
2014 Lowest contract charge 0.00% Class B $321.69 -- -- -- 4.86%
Highest contract charge 0.90% Class B $184.65 -- -- -- 3.92%
All contract charges -- 103 $21,132 0.00% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class A $400.77 -- -- -- (12.75)%
Highest contract charge 0.60% Class A $240.23 -- -- -- (13.27)%
All contract charges -- 35 $ 8,377 0.75% --
2017 Lowest contract charge 0.00% Class A $459.32 -- -- -- 9.28%
Highest contract charge 0.60% Class A $277.00 -- -- -- 8.63%
All contract charges -- 35 $10,131 0.76% --
2016 Lowest contract charge 0.00% Class A $420.32 -- -- -- 19.09%
Highest contract charge 0.60% Class A $255.00 -- -- -- 18.38%
All contract charges -- 39 $10,599 1.02% --
2015 Lowest contract charge 0.00% Class A $352.93 -- -- -- (5.54)%
Highest contract charge 0.60% Class A $215.41 -- -- -- (6.11)%
All contract charges -- 40 $ 9,746 0.68% --
2014 Lowest contract charge 0.00% Class A $373.64 -- -- -- 5.34%
Highest contract charge 0.60% Class A $229.42 -- -- -- 4.70%
All contract charges -- 43 $11,401 0.44% --
MULTIMANAGER MID CAP VALUE
2018 Lowest contract charge 0.00% Class B $262.46 -- -- -- (12.75)%
Highest contract charge 0.90% Class B $225.07 -- -- -- (13.53)%
All contract charges -- 103 $24,756 0.75% --
2017 Lowest contract charge 0.00% Class B $300.80 -- -- -- 9.27%
Highest contract charge 0.90% Class B $260.30 -- -- -- 8.29%
All contract charges -- 111 $30,843 0.76% --
2016 Lowest contract charge 0.00% Class B $275.28 -- -- -- 19.08%
Highest contract charge 0.90% Class B $240.37 -- -- -- 18.01%
All contract charges -- 144 $36,624 1.02% --
2015 Lowest contract charge 0.00% Class B $231.18 -- -- -- (5.55)%
Highest contract charge 0.90% Class B $203.69 -- -- -- (6.40)%
All contract charges -- 161 $34,517 0.68% --
2014 Lowest contract charge 0.00% Class B $244.76 -- -- -- 5.34%
Highest contract charge 0.90% Class B $217.62 -- -- -- 4.39%
All contract charges -- 171 $39,089 0.44% --
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class A $723.43 -- -- -- 2.29%
Highest contract charge 0.60% Class A $365.30 -- -- -- 1.68%
All contract charges -- 68 $23,252 0.16% --
2017 Lowest contract charge 0.00% Class A $707.20 -- -- -- 39.12%
Highest contract charge 0.60% Class A $359.27 -- -- -- 38.29%
All contract charges -- 42 $22,064 0.00% --
2016 Lowest contract charge 0.00% Class A $508.34 -- -- -- 8.95%
Highest contract charge 0.60% Class A $259.80 -- -- -- 8.30%
All contract charges -- 43 $17,008 0.01% --
2015 Lowest contract charge 0.00% Class A $466.60 -- -- -- 6.29%
Highest contract charge 0.60% Class A $239.90 -- -- -- 5.65%
All contract charges -- 45 $16,131 0.00% --
2014 Lowest contract charge 0.00% Class A $438.98 -- -- -- 13.55%
Highest contract charge 0.60% Class A $227.06 -- -- -- 12.86%
All contract charges -- 46 $16,479 0.00% --
|
FSA-154
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
MULTIMANAGER TECHNOLOGY
2018 Lowest contract charge 0.00% Class B $588.13 -- -- -- 2.29%
Highest contract charge 0.90% Class B $310.88 -- -- -- 1.37%
All contract charges -- 293 $107,753 0.16% --
2017 Lowest contract charge 0.00% Class B $574.94 -- -- -- 39.12%
Highest contract charge 0.90% Class B $306.69 -- -- -- 37.88%
All contract charges -- 292 $105,528 0.00% --
2016 Lowest contract charge 0.00% Class B $413.27 -- -- -- 8.94%
Highest contract charge 0.90% Class B $222.44 -- -- -- 7.96%
All contract charges -- 284 $ 73,856 0.01% --
2015 Lowest contract charge 0.00% Class B $379.34 -- -- -- 6.29%
Highest contract charge 0.90% Class B $206.03 -- -- -- 5.34%
All contract charges -- 301 $ 71,400 0.00% --
2014 Lowest contract charge 0.00% Class B $356.88 -- -- -- 13.55%
Highest contract charge 0.90% Class B $195.59 -- -- -- 12.53%
All contract charges -- 331 $ 73,397 0.00% --
NATURAL RESOURCES PORTFOLIO
2018 Lowest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
Highest contract charge 0.00% Class II $ 49.95 -- -- -- (18.42)%
All contract charges -- 92 $ 1,916 0.00% --
2017 Lowest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
Highest contract charge 0.00% Class II $ 61.23 -- -- -- (0.54)%
All contract charges -- 118 $ 4,277 0.00% --
2016 Lowest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
Highest contract charge 0.00% Class II $ 61.56 -- -- -- 24.82%
All contract charges -- 102 $ 3,924 0.00% --
2015 Lowest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
Highest contract charge 0.00% Class II $ 49.32 -- -- -- (28.84)%
All contract charges -- 86 $ 2,626 0.00% --
2014 Lowest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
Highest contract charge 0.00% Class II $ 69.31 -- -- -- (19.79)%
All contract charges -- 141 $ 7,525 0.00% --
PIMCO COMMODITYREALRETURN(R)/ /STRATEGY PORTFOLIO
2018 Lowest contract charge 0.00% Advisor Class $ 62.55 -- -- -- (14.21)%
Highest contract charge 0.90% Advisor Class $ 57.82 -- -- -- (14.98)%
All contract charges -- 154 $ 9,531 1.97% --
2017 Lowest contract charge 0.00% Advisor Class $ 72.91 -- -- -- 2.06%
Highest contract charge 0.90% Advisor Class $ 68.01 -- -- -- 1.13%
All contract charges -- 147 $ 10,603 10.89% --
2016 Lowest contract charge 0.00% Advisor Class $ 71.44 -- -- -- 14.87%
Highest contract charge 0.90% Advisor Class $ 67.25 -- -- -- 13.85%
All contract charges -- 136 $ 9,580 1.02% --
2015 Lowest contract charge 0.00% Advisor Class $ 62.19 -- -- -- (25.66)%
Highest contract charge 0.90% Advisor Class $ 59.07 -- -- -- (26.34)%
All contract charges -- 132 $ 8,067 4.22% --
2014 Lowest contract charge 0.00% Advisor Class $ 83.66 -- -- -- (18.75)%
Highest contract charge 0.90% Advisor Class $ 80.19 -- -- -- (19.47)%
All contract charges -- 109 $ 9,010 0.27% --
T. ROWE PRICE EQUITY INCOME PORTFOLIO
2018 Lowest contract charge 0.00% Class II $189.91 -- -- -- (9.69)%
Highest contract charge 0.90% Class II $175.55 -- -- -- (10.51)%
All contract charges -- 70 $ 13,050 1.80% --
2017 Lowest contract charge 0.00% Class II $210.29 -- -- -- 15.73%
Highest contract charge 0.90% Class II $196.17 -- -- -- 14.69%
All contract charges -- 68 $ 13,994 1.51% --
|
FSA-155
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
T. ROWE PRICE EQUITY INCOME PORTFOLIO (CONTINUED)
2016 Lowest contract charge 0.00% Class II $181.71 -- -- -- 18.86%
Highest contract charge 0.90% Class II $171.04 -- -- -- 17.79%
All contract charges -- 71 $12,645 1.79% --
2015 Lowest contract charge 0.00% Class II $152.88 -- -- -- (7.11)%
Highest contract charge 0.90% Class II $145.21 -- -- -- (7.94)%
All contract charges -- 115 $17,055 1.59% --
2014 Lowest contract charge 0.00% Class II $164.58 -- -- -- 7.11%
Highest contract charge 0.90% Class II $157.74 -- -- -- 6.14%
All contract charges -- 127 $20,537 1.50% --
TARGET 2015 ALLOCATION
2018 Lowest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
Highest contract charge 0.00% Class B $150.86 -- -- -- (4.31)%
All contract charges -- 47 $ 1,710 1.80% --
2017 Lowest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
Highest contract charge 0.00% Class B $157.65 -- -- -- 11.30%
All contract charges -- 34 $ 1,892 1.51% --
2016 Lowest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
Highest contract charge 0.00% Class B $141.64 -- -- -- 5.63%
All contract charges -- 14 $ 288 1.61% --
2015 Lowest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
Highest contract charge 0.00% Class B $134.09 -- -- -- (1.91)%
All contract charges -- 12 $ 223 2.33% --
2014 Lowest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
Highest contract charge 0.00% Class B $136.70 -- -- -- 2.96%
All contract charges -- 2 $ 38 0.78% --
TARGET 2025 ALLOCATION
2018 Lowest contract charge 0.00% Class B $161.71 -- -- -- (6.15)%
Highest contract charge 0.80% Class B $106.39 -- -- -- (6.90)%
All contract charges -- 154 $ 9,626 1.77% --
2017 Lowest contract charge 0.00% Class B $172.30 -- -- -- 15.42%
Highest contract charge 0.80% Class B $114.28 -- -- -- 14.50%
All contract charges -- 119 $ 7,645 1.85% --
2016 Lowest contract charge 0.00% Class B $149.28 -- -- -- 7.41%
Highest contract charge 0.80% Class B(a) $ 99.81 -- -- -- 6.55%
All contract charges -- 69 $ 2,092 1.65% --
2015 Lowest contract charge 0.00% Class B $138.98 -- -- -- (2.04)%
Highest contract charge 0.60% Class B(a) $ 93.80 -- -- -- (5.65)%
All contract charges -- 49 $ 1,261 1.41% --
2014 Lowest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
Highest contract charge 0.00% Class B $141.87 -- -- -- 4.03%
All contract charges -- 46 $ 915 1.55% --
TARGET 2035 ALLOCATION
2018 Lowest contract charge 0.00% Class B $167.54 -- -- -- (7.17)%
Highest contract charge 0.60% Class B $108.41 -- -- -- (7.73)%
All contract charges -- 83 $ 4,750 1.71% --
2017 Lowest contract charge 0.00% Class B $180.49 -- -- -- 17.77%
Highest contract charge 0.60% Class B $117.49 -- -- -- 17.06%
All contract charges -- 52 $ 3,313 1.79% --
2016 Lowest contract charge 0.00% Class B $153.26 -- -- -- 8.03%
Highest contract charge 0.60% Class B $100.37 -- -- -- 7.38%
All contract charges -- 30 $ 1,344 1.57% --
2015 Lowest contract charge 0.00% Class B $141.87 -- -- -- (2.03)%
Highest contract charge 0.60% Class B(a) $ 93.47 -- -- -- (5.98)%
All contract charges -- 24 $ 864 1.43% --
2014 Lowest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
Highest contract charge 0.00% Class B $144.81 -- -- -- 4.49%
All contract charges -- 18 $ 934 1.40% --
|
FSA-156
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TARGET 2045 ALLOCATION
2018 Lowest contract charge 0.00% Class B $170.79 -- -- -- (7.98)%
Highest contract charge 0.60% Class B $109.25 -- -- -- (8.54)%
All contract charges -- 51 $ 2,829 1.88% --
2017 Lowest contract charge 0.00% Class B $185.61 -- -- -- 19.69%
Highest contract charge 0.60% Class B $119.45 -- -- -- 18.97%
All contract charges -- 28 $ 1,776 1.71% --
2016 Lowest contract charge 0.00% Class B $155.07 -- -- -- 8.69%
Highest contract charge 0.60% Class B $100.40 -- -- -- 8.04%
All contract charges -- 15 $ 753 1.65% --
2015 Lowest contract charge 0.00% Class B $142.67 -- -- -- (2.23)%
Highest contract charge 0.60% Class B(a) $ 92.93 -- -- -- (6.52)%
All contract charges -- 16 $ 571 1.91% --
2014 Lowest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
Highest contract charge 0.00% Class B $145.92 -- -- -- 4.77%
All contract charges -- 9 $ 259 1.38% --
TARGET 2055 ALLOCATION
2018 Lowest contract charge 0.00% Class B $114.10 -- -- -- (8.79)%
Highest contract charge 0.60% Class B $111.61 -- -- -- (9.33)%
All contract charges -- 15 $ 937 1.82% --
2017 Lowest contract charge 0.00% Class B $125.09 -- -- -- 21.79%
Highest contract charge 0.60% Class B $123.10 -- -- -- 21.07%
All contract charges -- 8 $ 606 1.71% --
2016 Lowest contract charge 0.00% Class B $102.71 -- -- -- 9.51%
Highest contract charge 0.60% Class B(a) $101.68 -- -- -- 8.85%
All contract charges -- 2 $ 264 1.83% --
2015 Lowest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
Highest contract charge 0.00% Class B(a) $ 93.79 -- -- -- (6.70)%
All contract charges -- -- $ 46 3.95% --
TEMPLETON DEVELOPING MARKETS VIP FUND
2018 Lowest contract charge 0.00% Class 2 $109.63 -- -- -- (15.80)%
Highest contract charge 0.90% Class 2 $101.35 -- -- -- (16.56)%
All contract charges -- 160 $17,140 0.80% --
2017 Lowest contract charge 0.00% Class 2 $130.20 -- -- -- 40.41%
Highest contract charge 0.90% Class 2 $121.46 -- -- -- 39.16%
All contract charges -- 137 $17,444 0.96% --
2016 Lowest contract charge 0.00% Class 2 $ 92.73 -- -- -- 17.44%
Highest contract charge 0.90% Class 2 $ 87.28 -- -- -- 16.39%
All contract charges -- 104 $ 9,563 0.81% --
2015 Lowest contract charge 0.00% Class 2 $ 78.96 -- -- -- (19.60)%
Highest contract charge 0.90% Class 2 $ 74.99 -- -- -- (20.33)%
All contract charges -- 101 $ 7,804 1.97% --
2014 Lowest contract charge 0.00% Class 2 $ 98.21 -- -- -- (8.39)%
Highest contract charge 0.90% Class 2 $ 94.13 -- -- -- (9.21)%
All contract charges -- 99 $ 9,492 1.48% --
TEMPLETON GLOBAL BOND VIP FUND
2018 Lowest contract charge 0.00% Class 2 $127.06 -- -- -- 1.94%
Highest contract charge 0.90% Class 2 $117.46 -- -- -- 1.01%
All contract charges -- 643 $46,400 0.00% --
2017 Lowest contract charge 0.00% Class 2 $124.64 -- -- -- 1.92%
Highest contract charge 0.90% Class 2 $116.28 -- -- -- 1.02%
All contract charges -- 586 $45,630 0.00% --
2016 Lowest contract charge 0.00% Class 2 $122.29 -- -- -- 2.94%
Highest contract charge 0.90% Class 2 $115.11 -- -- -- 2.01%
All contract charges -- 529 $41,472 0.00% --
|
FSA-157
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2018
8. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------
ACCUMULATION
UNITS OUTSTANDING UNIT VALUES INVESTMENT TOTAL
UNIT VALUE (000'S) (000'S) INCOME RATIO* RETURN**
---------- ----------------- ------------ ------------- --------
TEMPLETON GLOBAL BOND VIP FUND (CONTINUED)
2015 Lowest contract charge 0.00% Class 2 $118.80 -- -- -- (4.30)%
Highest contract charge 0.90% Class 2 $112.84 -- -- -- (5.17)%
All contract charges -- 529 $42,461 7.79% --
2014 Lowest contract charge 0.00% Class 2 $124.14 -- -- -- 1.83%
Highest contract charge 0.90% Class 2 $118.99 -- -- -- 0.92%
All contract charges -- 515 $47,540 5.01% --
TEMPLETON GROWTH VIP FUND
2018 Lowest contract charge 0.00% Class 2 $154.60 -- -- -- (14.85)%
Highest contract charge 0.90% Class 2 $142.91 -- -- -- (15.62)%
All contract charges -- 29 $ 4,401 1.97% --
2017 Lowest contract charge 0.00% Class 2 $181.56 -- -- -- 18.50%
Highest contract charge 0.90% Class 2 $169.37 -- -- -- 17.44%
All contract charges -- 30 $ 5,260 1.60% --
2016 Lowest contract charge 0.00% Class 2 $153.21 -- -- -- 9.62%
Highest contract charge 0.90% Class 2 $144.22 -- -- -- 8.64%
All contract charges -- 31 $ 4,575 2.03% --
2015 Lowest contract charge 0.00% Class 2 $139.77 -- -- -- (6.48)%
Highest contract charge 0.90% Class 2 $132.75 -- -- -- (7.33)%
All contract charges -- 33 $ 4,511 2.55% --
2014 Lowest contract charge 0.00% Class 2 $149.46 -- -- -- (2.82)%
Highest contract charge 0.90% Class 2 $143.25 -- -- -- (3.69)%
All contract charges -- 36 $ 5,379 1.34% --
VANECK VIP GLOBAL HARD ASSETS FUND
2018 Lowest contract charge 0.00% Class S Shares $ 59.79 -- -- -- (28.42)%
Highest contract charge 0.90% Class S Shares $ 55.27 -- -- -- (29.07)%
All contract charges -- 143 $ 8,441 0.00% --
2017 Lowest contract charge 0.00% Class S Shares $ 83.53 -- -- -- (1.97)%
Highest contract charge 0.90% Class S Shares $ 77.92 -- -- -- (2.86)%
All contract charges -- 151 $12,427 0.00% --
2016 Lowest contract charge 0.00% Class S Shares $ 85.21 -- -- -- 43.40%
Highest contract charge 0.90% Class S Shares $ 80.21 -- -- -- 42.14%
All contract charges -- 155 $12,986 0.38% --
2015 Lowest contract charge 0.00% Class S Shares $ 59.42 -- -- -- (33.62)%
Highest contract charge 0.90% Class S Shares $ 56.43 -- -- -- (34.23)%
All contract charges -- 147 $ 8,559 0.03% --
2014 Lowest contract charge 0.00% Class S Shares $ 89.52 -- -- -- (19.34)%
Highest contract charge 0.90% Class S Shares $ 85.80 -- -- -- (20.07)%
All contract charges -- 127 $11,178 0.00% --
VANGUARD VARIABLE INSURANCE FUND--EQUITY INDEX PORTFOLIO
2018 Lowest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
Highest contract charge 0.60% Investor Share Class $271.11 -- -- -- (5.08)%
All contract charges -- 48 $13,016 1.56% --
2017 Lowest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
Highest contract charge 0.60% Investor Share Class $285.63 -- -- -- 20.93%
All contract charges -- 31 $ 8,898 1.78% --
2016 Lowest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
Highest contract charge 0.60% Investor Share Class $236.19 -- -- -- 11.14%
All contract charges -- 31 $ 7,243 2.38% --
2015 Lowest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
Highest contract charge 0.60% Investor Share Class $212.51 -- -- -- 0.66%
All contract charges -- 37 $ 7,894 1.66% --
2014 Lowest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
Highest contract charge 0.60% Investor Share Class $211.12 -- -- -- 12.83%
All contract charges -- 36 $ 7,580 1.67% --
|
FSA-158
AXA EQUITABLE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT FP
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 2018
8. Financial Highlights (Concluded)
(a)Units were made available on May 26, 2015.
(b)Units were made available on March 27, 2015.
(c)Units were made available on May 20, 2016.
(d)Units were made available on May 19, 2017.
(e)All Asset Growth-Alt 20 replaced All Asset Aggressive-Alt 25 due to a
merger on May 19, 2017.
(f)Units were made available on October 22, 2018.
(g)EQ/American Century Mid Cap Value replaced American Century VP Mid Cap
Value Fund due to a substitution on October 22, 2018.
(h)EQ/Fidelity Institutional AM/SM/ Large Cap replaced Fidelity(R) VIP
Contrafund(R) Portfolio due to a substitution on October 22, 2018.
(i)EQ/Franklin Rising Dividends replaced Franklin Rising Dividends VIP Fund
due to a substitution on October 22, 2018.
(j)EQ/Franklin Strategic Income replaced Franklin Strategic Income VIP Fund
due to a substitution on October 22, 2018.
(k)EQ/Goldman Sachs Mid Cap Value replaced Goldman Sachs VIT Mid Cap Value
Fund due to a substitution on October 22, 2018.
(l)EQ/Invesco Global Real Estate replaced Invesco V.I. Global Real Estate
Fund due to a substitution on October 22, 2018.
(m)EQ/Invesco International Growth replaced Invesco V.I. International Growth
Fund due to a substitution on October 22, 2018.
(n)EQ/Ivy Energy replaced Ivy VIP Energy due to a substitution on October 22,
2018.
(o)EQ/Ivy Mid Cap Growth replaced Ivy VIP Mid Cap Growth due to a
substitution on October 22, 2018.
(p)EQ/Ivy Science And Technology replaced Ivy VIP Science And Technology due
to a substitution on October 22, 2018.
(q)EQ/Lazard Emerging Markets Equity replaced Lazard Retirement Emerging
Markets Equity Portfolio due to a substitution on October 22, 2018.
(r)EQ/MFS International Value replaced MFS(R) International Value Portfolio
due to a substitution on October 22, 2018.
(s)EQ/MFS Utilities Series replaced MFS(R) Utilities Series due to a
substitution on October 22, 2018.
(t)EQ/PIMCO Real Return replaced PIMCO Real Return Portfolio due to a
substitution on October 22, 2018.
(u)EQ/PIMCO Total Return replaced PIMCO Total Return Portfolio due to a
substitution on October 22, 2018.
(v)EQ/T. Rowe Price Health Sciences replaced T. Rowe Price Health Sciences
Portfolio due to a substitution on October 22, 2018.
* This ratio represents the amount of dividend income, excluding
distributions from net realized gains, received by the Variable Investment
Option from the Portfolio, divided by the average daily net assets. This
ratio excludes those expenses, such as asset-based charges, that result in
direct reductions in the unit value. The recognition of dividend income by
the Variable Investment Option is affected by the timing of the
declaration of dividends by the Portfolio in which the Variable Investment
Option invests. For those Variable Investment Options with less than a
year of operations, this ratio is not annualized but calculated from the
effective date through the end of the reporting period.
** This ratio represents the total return for the periods indicated,
including changes in the value of the Portfolio, and expenses assessed
through the reduction of unit value. This ratio does not include any
expenses, such as premium and withdrawal charges, as applicable, or
expenses assessed through the redemption of units. The total return would
have been lower had such expenses been included in the calculation.
Variable Investment Options with a date notation indicate the effective
date of the Variable Investment Option, without consideration if there
were units outstanding as of such date. The total return is calculated for
each period indicated from the effective date through the end of the
reporting period. Where there are no units outstanding at period-end, the
total return is calculated using the current offering price of the unit.
For those Variable Investment Options with less than a year of operations,
the total return is not annualized but calculated from the effective date
through the end of the reporting period.
9. Subsequent Events
All material subsequent transactions and events have been evaluated for the
period from December 31, 2018 through April 15, 2019, the date on which the
financial statements were issued. It has been determined that there are no
transactions or events that require adjustment or disclosure in the
financial statements.
FSA-159
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES
AXA EQUITABLE LIFE INSURANCE COMPANY
Report of Independent Registered Public Accounting Firm....................................................... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, as of December 31, 2018 and 2017................................................ F-2
Consolidated Statements of Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016............... F-4
Consolidated Statements of Comprehensive Income (Loss), for the Years Ended December 31, 2018, 2017 and 2016. F-5
Consolidated Statements of Equity, for the Years Ended December 31, 2018, 2017 and 2016...................... F-6
Consolidated Statements of Cash Flows, for the Years Ended December 31, 2018, 2017 and 2016.................. F-7
Notes to Consolidated Financial Statements
Note 1 -- Organization..................................................................................... F-10
Note 2 -- Significant Accounting Policies.................................................................. F-10
Note 3 -- Investments...................................................................................... F-26
Note 4 -- Intangible Assets................................................................................ F-41
Note 5 -- Closed Block..................................................................................... F-41
Note 6 -- DAC and Policyholder Bonus Interest Credits...................................................... F-43
Note 7 -- Fair Value Disclosures........................................................................... F-44
Note 8 -- Insurance Liabilities............................................................................ F-56
Note 9 -- Revenue Recognition.............................................................................. F-59
Note 10 -- Reinsurance Agreements.......................................................................... F-59
Note 11 -- Long-term Debt.................................................................................. F-60
Note 12 -- Related Party Transactions...................................................................... F-60
Note 13 -- Employee Benefit Plans.......................................................................... F-64
Note 14 -- Share-Based and Other Compensation Programs..................................................... F-64
Note 15 -- Income Taxes.................................................................................... F-69
Note 16 -- Accumulated Other Comprehensive Income (Loss)................................................... F-71
Note 17 -- Commitments and Contingent Liabilities.......................................................... F-72
Note 18 -- Insurance Group Statutory Financial Information................................................. F-74
Note 19 -- Discontinued Operations......................................................................... F-75
Note 20 -- Revision of Prior Period Financial Statements................................................... F-77
Note 21 -- Quarterly Results of Operations (Unaudited)..................................................... F-83
Note 22 -- Subsequent Events............................................................................... F-99
Audited Consolidated Financial Statement Schedules
Schedule I -- Summary of Investments -- Other than Investments in Related Parties, as of December 31, 2018... F-100
Schedule IV -- Reinsurance, as of and for the Years Ended December 31, 2018, 2017 and 2016................... F-101
|
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholder of
AXA Equitable Life Insurance Company:
OPINION ON THE FINANCIAL STATEMENTS
We have audited the accompanying consolidated balance sheets of AXA Equitable
Life Insurance Company and its subsidiaries (the Company) as of December 31,
2018 and 2017, and the related consolidated statements of income (loss),
comprehensive income (loss), equity and cash flows for each of the three years
in the period ended December 31, 2018, including the related notes and
financial statement schedules listed in the accompanying index (collectively
referred to as the consolidated financial statements). In our opinion, the
consolidated financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2018 and 2017, and the
results of its operations and its cash flows for each of the three years in the
period ended December 31, 2018 in conformity with accounting principles
generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 2 to the consolidated financial statements, the Company
changed in 2018 the manner in which it accounts for certain income tax effects
originally recognized in accumulated other comprehensive income.
BASIS FOR OPINION
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on the Company's
consolidated financial statements based on our audits. We are a public
accounting firm registered with the Public Company Accounting Oversight Board
(United States) (PCAOB) and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in
accordance with the standards of the PCAOB. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement, whether
due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part
of our audits we are required to obtain an understanding of internal control
over financial reporting but not for the purpose of expressing an opinion on
the effectiveness of the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the consolidated
financial statements. We believe that our audits provide a reasonable basis for
our opinion.
/s/ PricewaterhouseCoopers LLP
New York, NY
March 28, 2019
|
We have served as the Company's auditor since 1993.
F-1
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
ASSETS
Investments:
Fixed maturities available for sale, at fair value
(amortized cost of $42,492 and $34,831)................ $ 41,915 $ 36,358
Mortgage loans on real estate (net of valuation
allowance of $7 and $8)................................ 11,818 10,935
Real estate held for production of income............... 52 390
Policy loans............................................ 3,267 3,315
Other equity investments................................ 1,144 1,264
Trading securities, at fair value....................... 15,166 12,277
Other invested assets................................... 1,554 1,830
--------- ---------
Total investments...................................... 74,916 66,369
Cash and cash equivalents................................. 2,622 2,400
Cash and securities segregated, at fair value............. -- 9
Deferred policy acquisition costs......................... 5,011 4,492
Amounts due from reinsurers............................... 3,124 5,079
Loans to affiliates....................................... 600 703
GMIB reinsurance contract asset, at fair value............ 1,991 10,488
Current and deferred income taxes......................... 438 --
Other assets.............................................. 2,763 4,018
Assets of disposed subsidiary............................. -- 9,835
Separate Accounts assets.................................. 108,487 122,537
--------- ---------
TOTAL ASSETS.............................................. $ 199,952 $ 225,930
========= =========
LIABILITIES
Policyholders' account balances........................... $ 46,403 $ 43,805
Future policy benefits and other
policyholders' liabilities.............................. 29,808 29,070
Broker-dealer related payables............................ 69 430
Securities sold under agreements to repurchase............ 573 1,887
Amounts due to reinsurers................................. 113 134
Long-term debt............................................ -- 203
Loans from affiliates..................................... 572 --
Current and deferred income taxes......................... -- 1,550
Other liabilities......................................... 1,460 1,242
Liabilities of disposed subsidiary........................ -- 4,954
Separate Accounts liabilities............................. 108,487 122,537
--------- ---------
Total Liabilities...................................... $ 187,485 $ 205,812
--------- ---------
Redeemable noncontrolling interest:
Continuing operations................................... $ 39 $ 24
Disposed subsidiary..................................... -- 602
--------- ---------
Redeemable noncontrolling interest..................... $ 39 $ 626
--------- ---------
Commitments and contingent liabilities (Note 17)
|
See Notes to the Consolidated Financial Statements.
F-2
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2018 AND 2017
(CONTINUED)
2018 2017
--------- ---------
(IN MILLIONS, EXCEPT
SHARE AMOUNTS)
EQUITY
Equity attributable to AXA Equitable:
Common stock, $1.25 par value; 2,000,000 shares
authorized, issued and outstanding............. $ 2 $ 2
Capital in excess of par value.................. 7,807 6,859
Retained earnings............................... 5,098 8,938
Accumulated other comprehensive income (loss)... (491) 598
--------- ---------
Total equity attributable to AXA Equitable..... 12,416 16,397
--------- ---------
Noncontrolling interest........................... 12 3,095
--------- ---------
Total Equity................................... 12,428 19,492
--------- ---------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY............................. $ 199,952 $ 225,930
========= =========
|
See Notes to the Consolidated Financial Statements.
F-3
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
-------- --------- ---------
(IN MILLIONS)
REVENUES
Policy charges and fee income...................... $ 3,523 $ 3,294 $ 3,311
Premiums........................................... 862 904 880
Net derivative gains (losses)...................... (1,010) 894 (1,321)
Net investment income (loss)....................... 2,478 2,441 2,168
Investment gains (losses), net:
Total other-than-temporary impairment losses..... (37) (13) (65)
Other investment gains (losses), net............. 41 (112) 83
-------- --------- ---------
Total investment gains (losses), net............ 4 (125) 18
-------- --------- ---------
Investment management and service fees............. 1,029 1,007 951
Other income....................................... 65 41 36
-------- --------- ---------
Total revenues.................................. 6,951 8,456 6,043
-------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Policyholders' benefits............................ 3,005 3,473 2,771
Interest credited to policyholders'
account balances................................. 1,002 921 905
Compensation and benefits.......................... 422 327 364
Commissions and distribution related payments...... 620 628 635
Interest expense................................... 34 23 13
Amortization of deferred policy acquisition costs.. 431 900 642
Other operating costs and expenses................. 2,918 635 753
-------- --------- ---------
Total benefits and other deductions............. 8,432 6,907 6,083
-------- --------- ---------
Income (loss) from continuing operations, before
income taxes..................................... (1,481) 1,549 (40)
Income tax (expense) benefit from
continuing operations............................ 446 1,210 164
-------- --------- ---------
Net income (loss) from continuing operations....... (1,035) 2,759 124
Net income (loss) from discontinued operations,
net of taxes and noncontrolling interest......... 114 85 66
-------- --------- ---------
Net income (loss).................................. (921) 2,844 190
Less: net (income) loss attributable to the
noncontrolling interest......................... 3 (1) --
-------- --------- ---------
Net income (loss) attributable to AXA Equitable.... $ (918) $ 2,843 $ 190
======== ========= =========
|
See Notes to the Consolidated Financial Statements.
F-4
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- -------- ------
(IN MILLIONS)
COMPREHENSIVE INCOME (LOSS)
Net income (loss)................................. $ (921) $ 2,844 $ 190
--------- -------- ------
Other Comprehensive income (loss) net of income
taxes:
Change in unrealized gains (losses), net of
reclassification adjustment.................... (1,230) 625 (233)
Changes in defined benefit plan related items
not yet recognized in periodic benefit cost,
net of reclassification adjustment............. (4) (5) (3)
Other comprehensive income (loss) from
discontinued operations........................ -- (18) 17
--------- -------- ------
Total other comprehensive income (loss), net of
income taxes.................................... (1,234) 602 (219)
--------- -------- ------
Comprehensive income (loss) attributable to
AXA Equitable................................... $ (2,155) $ 3,446 $ (29)
========= ======== ======
|
See Notes to the Consolidated Financial Statements.
F-5
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF EQUITY
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
EQUITY ATTRIBUTABLE TO AXA EQUITABLE:
COMMON STOCK, AT PAR VALUE, BEGINNING AND END
OF YEAR........................................ $ 2 $ 2 $ 2
--------- --------- ---------
Capital in excess of par value, beginning
of year........................................ $ 6,859 $ 5,339 $ 5,321
Capital contribution from parent company........ -- 1,500 --
Transfer of deferred tax asset in GMxB Unwind... 1,209 -- --
Settlement of intercompany payables in
GMxB Unwind.................................... (297) -- --
Other........................................... 36 20 18
--------- --------- ---------
CAPITAL IN EXCESS OF PAR VALUE, END OF YEAR..... $ 7,807 $ 6,859 $ 5,339
--------- --------- ---------
Retained earnings, beginning of year............ $ 8,938 $ 6,095 $ 6,955
Cumulative effect of adoption of revenue
recognition standard ASC 606................... 8 -- --
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS
ATTRIBUTE TO DISPOSED SUBSIDIARY............... (83) -- --
Net income (loss) attributable to AXA Equitable. (918) 2,843 190
Dividend to parent company...................... (1,672) -- (1,050)
Distribution of disposed subsidiary............. (1,175) -- --
--------- --------- ---------
RETAINED EARNINGS, END OF YEAR.................. $ 5,098 $ 8,938 $ 6,095
--------- --------- ---------
Accumulated other comprehensive income (loss),
beginning of year.............................. $ 598 $ (4) $ 215
Cumulative effect of adoption of ASU 2018-02,
RECLASSIFICATION OF CERTAIN TAX EFFECTS........ 83 -- --
Other comprehensive income (loss)............... (1,234) 602 (219)
Transfer of accumulated other comprehensive
income to discontinued operations.............. 62 -- --
--------- --------- ---------
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS),
END OF YEAR.................................... (491) 598 (4)
--------- --------- ---------
TOTAL AXA EQUITABLE'S EQUITY, END OF YEAR...... $ 12,416 $ 16,397 $ 11,432
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST
Noncontrolling interest, continuing operations,
beginning of year.............................. $ 19 $ -- $ --
Net earnings (loss) attributable to
noncontrolling interest........................ 1 -- --
Net earnings (loss) attributable to redeemable
noncontrolling interests....................... 2 (1) --
Consolidation of real estate joint ventures..... -- 19 --
Deconsolidation of real estate joint ventures... (8) -- --
Reclassification of net earnings (loss)
attributable to redeemable
noncontrolling interests....................... (2) 1 --
--------- --------- ---------
NONCONTROLLING INTEREST, CONTINUING OPERATIONS,
END OF YEAR.................................... $ 12 $ 19 $ --
--------- --------- ---------
Noncontrolling interest, discontinued
operations, beginning of year.................. $ 3,076 $ 3,096 $ 3,059
Repurchase of AB Holding Units.................. -- (158) (168)
Net earnings (loss) attributable to
noncontrolling interest........................ -- 485 491
Dividends paid to noncontrolling interest....... -- (457) (384)
Transfer of AB Holding Units.................... (3,076) -- --
Other changes in noncontrolling interest........ -- 110 98
--------- --------- ---------
NONCONTROLLING INTEREST, DISCONTINUED
OPERATIONS, END OF YEAR........................ $ -- $ 3,076 $ 3,096
--------- --------- ---------
EQUITY ATTRIBUTABLE TO THE NONCONTROLLING INTEREST $ 12 $ 3,095 $ 3,096
--------- --------- ---------
TOTAL EQUITY, END OF YEAR......................... $ 12,428 $ 19,492 $ 14,528
========= ========= =========
|
See Notes to the Consolidated Financial Statements.
F-6
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
2018 2017 2016
---------- ---------- ---------
(IN MILLIONS)
NET INCOME (LOSS)/(1)/............................. $ (358) $ 3,377 $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders'
account balances................................ 1,002 921 905
Policy charges and fee income.................... (3,523) (3,294) (3,311)
Net derivative (gains) losses.................... 1,010 (870) 1,337
Investment (gains) losses, net................... (3) 125 (16)
Realized and unrealized (gains) losses on
trading securities.............................. 221 (166) 41
Non-cash long-term incentive compensation
expense/(2)/.................................... 218 185 152
Amortization of deferred cost of
reinsurance asset............................... 1,882 (84) 159
Amortization and depreciation/(2)/............... 340 825 614
Cash received on the recapture of
captive reinsurance............................. 1,273 -- --
Equity (income) loss from limited partnerships... (120) (157) (91)
Changes in:
Net broker-dealer and customer related
receivables/payables.......................... 838 (278) 608
Reinsurance recoverable/(2)/.................... (390) (1,018) (304)
Segregated cash and securities, net............. (345) 130 (381)
Capitalization of deferred policy acquisition
costs/(2)/.................................... (597) (578) (594)
Future policy benefits.......................... (284) 1,189 431
Current and deferred income taxes............... (556) (1,174) (753)
Other, net/(2)/................................. 810 486 56
---------- ---------- ---------
Net cash provided by (used in)
operating activities............................. $ 1,418 $ (381) $ (461)
---------- ---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale............ $ 8,935 $ 9,738 $ 7,154
Mortgage loans on real estate................... 768 934 676
Trading account securities...................... 9,298 9,125 6,271
Real estate joint ventures...................... 139 -- --
Short-term investments/(2)/..................... 2,315 2,204 2,984
Other........................................... 190 228 32
Payment for the purchase/origination of:
Fixed maturities, available-for-sale............ (11,110) (12,465) (7,873)
Mortgage loans on real estate................... (1,642) (2,108) (3,261)
Trading account securities...................... (11,404) (12,667) (8,691)
Short-term investments/(2)/..................... (1,852) (2,456) (3,187)
Other........................................... (170) (280) (250)
Cash settlements related to
derivative instruments.......................... 805 (1,259) 102
Repayments of loans to affiliates................ 900 -- 384
Investment in capitalized software, leasehold
improvements and EDP equipment.................. (115) (100) (85)
Purchase of business, net of cash acquired....... -- (130) (21)
Issuance of loans to affiliates.................. (1,100) -- --
Cash disposed due to distribution of
disposed subsidiary............................. (672) -- --
Other, net/(2)/.................................. (91) 322 407
---------- ---------- ---------
Net cash provided by (used in)
investing activities............................. $ (4,806) $ (8,914) $ (5,358)
---------- ---------- ---------
|
See Notes to the Consolidated Financial Statements.
F-7
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits........................................ $ 9,365 $ 9,334 $ 9,746
Withdrawals..................................... (4,496) (3,926) (2,874)
Transfer (to) from Separate Accounts............ 1,809 1,566 1,202
Change in short-term financings.................. (26) 53 (69)
Change in collateralized pledged assets.......... 1 710 (677)
Change in collateralized pledged liabilities..... (291) 1,108 125
(Decrease) increase in overdrafts payable........ 3 63 (85)
Additional loans from affiliates................. 572 -- --
Shareholder dividends paid....................... (1,672) -- (1,050)
Repurchase of AB Holding Units................... (267) (220) (236)
Purchases (redemptions) of noncontrolling
interests of consolidated company-sponsored
investment funds................................ (472) 120 (137)
Distribution to noncontrolling interest of
consolidated subsidiaries....................... (610) (457) (385)
Increase (decrease) in securities sold under
agreement to repurchase......................... (1,314) (109) 104
(Increase) decrease in securities purchased
under agreement to resell....................... -- -- 79
Capital contribution from parent company......... -- 1,500 --
Other, net....................................... 11 (10) 8
-------- -------- --------
Net cash provided by (used in)
financing activities............................. $ 2,613 $ 9,732 $ 5,751
-------- -------- --------
Effect of exchange rate changes on cash and
cash equivalents................................. (12) 22 (10)
-------- -------- --------
Change in cash and cash equivalents................ (787) 459 (78)
Cash and cash equivalents, beginning of year....... 3,409 2,950 3,028
-------- -------- --------
Cash and cash equivalents, end of year............. $ 2,622 $ 3,409 $ 2,950
======== ======== ========
Cash and cash equivalents of disposed subsidiary:
Beginning of year................................ $ 1,009 $ 1,006 $ 561
======== ======== ========
End of year...................................... $ -- $ 1,009 $ 1,006
======== ======== ========
Cash and cash equivalents of continuing operations
Beginning of year................................ $ 2,400 $ 1,944 $ 2,467
======== ======== ========
End of year...................................... $ 2,622 $ 2,400 $ 1,944
======== ======== ========
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid.................................... $ -- $ (8) $ (11)
======== ======== ========
Income taxes (refunded) paid..................... $ (8) $ (33) $ 613
======== ======== ========
|
See Notes to the Consolidated Financial Statements.
F-8
AXA EQUITABLE LIFE INSURANCE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
(CONTINUED)
2018 2017 2016
-------- ----- ------
(IN MILLIONS)
CASH FLOWS OF DISPOSED SUBSIDIARY:
Net cash provided by (used in)
operating activities........................... $ 1,137 $ 715 $1,041
Net cash provided by (used in)
investing activities........................... (102) (297) 323
Net cash provided by (used in)
financing activities........................... (1,360) (437) (909)
Effect of exchange rate changes on cash and
cash equivalents............................... (12) 22 (10)
NON-CASH TRANSACTIONS:
Continuing operations
(Settlement) issuance of long-term debt......... $ (202) $ 202 $ --
======== ===== ======
Transfer of assets to reinsurer................. $ (604) $ -- $ --
======== ===== ======
Repayments of loans from affiliates............. $ 300 $ -- $ --
======== ===== ======
Discontinued operations
Fair value of assets acquired................... $ -- $ -- $ 34
======== ===== ======
Fair value of liabilities assumed............... $ -- $ -- $ 1
======== ===== ======
Payables recorded under contingent
payment arrangements........................... $ -- $ -- $ 12
======== ===== ======
Disposal of subsidiary
Assets disposed................................. $ 9,156 $ -- $ --
Liabilities disposed............................ 4,914 -- --
-------- ----- ------
Net assets disposed............................. 4,242 -- --
Cash disposed................................... 672 -- --
-------- ----- ------
Net non-cash disposed........................... $ 3,570 $ -- $ --
======== ===== ======
|
/(1)/Net income (loss) includes $564 million, $533 million and $496 million in
2018, 2017 and 2016, respectively, of the discontinued operations that are
not included in net income (loss) in the Consolidated Statements of Income
(Loss).
/(2)/Prior period amounts have been reclassified to conform to current period
presentation. See Note 20 for further information.
See Notes to the Consolidated Financial Statements.
F-9
AXA EQUITABLE LIFE INSURANCE COMPANY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
Consolidation
AXA Equitable Life Insurance Company's ("AXA Equitable" and, collectively
with its consolidated subsidiaries, the "Company") primary business is
providing life insurance and employee benefit products to both individuals
and businesses. The Company is an indirect, wholly-owned subsidiary of AXA
Equitable Holdings, Inc. ("Holdings"). Prior to the closing of the initial
public offering of shares of Holdings' common stock on May 14, 2018 (the
"IPO"), Holdings was a wholly-owned subsidiary of AXA S.A. ("AXA"), a French
holding company for the AXA Group, a worldwide leader in life, property and
casualty, and health insurance and asset management. As of December 31,
2018, AXA owns approximately 59% of the outstanding common stock of Holdings.
In March 2018, AXA contributed its 0.5% minority interest in AXA Financial,
Inc. ("AXA Financial") to Holdings, increasing Holdings' ownership of AXA
Financial to 100%. On October 1, 2018, AXA Financial merged with and into
its direct parent, Holdings, with Holdings continuing as the surviving
entity (the "AXA Financial Merger"). As a result of the AXA Financial
Merger, Holdings assumed all of AXA Financial's liabilities, including two
assumption agreements under which it legally assumed primary liability for
certain employee benefit plans of AXA Equitable Life and various guarantees
for its subsidiaries.
The accompanying consolidated financial statements represent the
consolidated results and financial position of AXA Equitable and not the
consolidated results and financial position of Holdings.
Discontinued Operations
In the fourth quarter of 2018, the Company transferred its economic interest
in the business of AllianceBernstein Holding L.P. ("AB Holding"),
AllianceBernstein L.P. ("ABLP") and their subsidiaries (collectively, "AB")
to a newly created wholly-owned subsidiary of Holdings (the "AB Business
Transfer"). The results of AB are reflected in the Company's consolidated
financial statements as a discontinued operation and, therefore, are
presented as Assets of disposed subsidiary, Liabilities of disposed
subsidiary on the consolidated balance sheets and Net income (loss) from
discontinued operations, net of taxes, on the consolidated statements of
income (loss). Intercompany transactions between the Company and AB prior to
the AB Business Transfer have been eliminated. Ongoing service transactions
will be reported as related party transactions going forward. See Note 19
for information on discontinued operations and transactions with AB.
As a result of the AB Business Transfer, we have reassessed the Company's
segment structure and concluded that the Company operates as a single
reportable segment as information on a more segmented basis is not evaluated
by the Chief Operating Decision Maker and as such there is only a single
reporting segment.
2) SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The preparation of the accompanying consolidated financial statements in
conformity with accounting principles generally accepted in the United
States of America ("U.S. GAAP") requires management to make estimates and
assumptions (including normal, recurring accruals) that affect the reported
amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from these estimates.
The accompanying consolidated financial statements present the consolidated
results of operations, financial condition and cash flows of the Company and
its subsidiaries and those investment companies, partnerships and joint
ventures in which the Company has control and a majority economic interest
as well as those variable interest entities ("VIEs") that meet the
requirements for consolidation.
Financial results in the historical consolidated financial statements may
not be indicative of the results of operations, comprehensive income (loss),
financial position, equity or cash flows that would have been achieved had
we operated as a separate, standalone entity during the reporting periods
presented. We believe that the consolidated financial statements include all
adjustments necessary for a fair presentation of the results of operations
of the Company.
F-10
All significant intercompany transactions and balances have been eliminated
in consolidation. The years "2018", "2017" and "2016" refer to the years
ended December 31, 2018, 2017 and 2016, respectively.
Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
-------------------------------------------------------------------------------------------------------------------
ASU 2014-09: REVENUE FROM CONTRACTS WITH CUSTOMERS (TOPIC 606)
-------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that On January 1, 2018, the Company adopted the new revenue
clarifies the principles for recognizing recognition guidance on a modified retrospective basis. The impact
revenue arising from contracts with of the adoption of the new revenue recognition guidance related
customers and develops a common revenue to the disposed subsidiary resulted in an opening retained earnings
standard for U.S. GAAP. adjustment to the Company of $8 million. Adoption did not
change the amounts or timing of the Company's revenue
recognition for investment management and advisory fees related
to continuing operations.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-01: FINANCIAL INSTRUMENTS -- OVERALL (SUBTOPIC 825-10)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance related to On January 1, 2018, the Company adopted the new recognition
the recognition and measurement of financial requirements on a modified retrospective basis for changes in the
assets and financial liabilities. The new fair value of AFS equity securities, resulting in no material
guidance primarily affects the accounting reclassification adjustment from AOCI to opening retained
for equity investments, financial earnings for the net unrealized gains, net of tax, related to
liabilities under the fair value option, and approximately $13 million of common stock securities and
presentation and disclosure requirements for eliminated their designation as AFS equity securities. The Company
financial instruments. The FASB also does not currently report any of its financial liabilities under the
clarified guidance related to the valuation fair value option.
allowance assessment when recognizing
deferred tax assets resulting from
unrealized losses on AFS debt securities.
The new guidance requires equity investments
in unconsolidated entities, except those
accounted for under the equity method, to be
measured at fair value through earnings,
thereby eliminating the AFS classification
for equity securities with readily
determinable fair values for which changes
in fair value currently were reported
in AOCI.
-------------------------------------------------------------------------------------------------------------------
ASU 2016-15: STATEMENT OF CASH FLOWS (TOPIC 230)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance to simplify Adoption of this guidance on January 1, 2018, did not have a
elements of cash flow classification. The material impact on the Company's consolidated financial statements.
new guidance is intended to reduce diversity
in practice in how certain transactions are
classified in the statement of cash flows.
The new guidance requires application of a
retrospective transition method.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-07: COMPENSATION -- RETIREMENT BENEFITS (TOPIC 715)
-------------------------------------------------------------------------------------------------------------------
This ASU provides new guidance on the On January 1, 2018, the Company adopted the change in the
presentation of net periodic pension and income statement presentation utilizing the practical expedient for
post-retirement benefit costs that requires determining the historical components of net benefit costs,
retrospective disaggregation of the service resulting in no material impact to the consolidated financial
cost component from the other components of statements. In addition, no changes to the Company's
net benefit costs on the income statement. capitalization policies with respect to benefit costs resulted from
the adoption of the new guidance.
-------------------------------------------------------------------------------------------------------------------
ASU 2017-09: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
-------------------------------------------------------------------------------------------------------------------
This ASU provides clarity and reduces both Adoption of this amendment on January 1, 2018 did not have a
1) diversity in practice and 2) cost and material impact on the Company's consolidated financial statements.
complexity when applying guidance in Topic
718, Compensation -- Stock Compensation, to
a change to the terms or conditions of a
share-based payment award.
-------------------------------------------------------------------------------------------------------------------
|
F-11
EFFECT ON THE FINANCIAL STATEMENT OR OTHER SIGNIFICANT
DESCRIPTION MATTERS
------------------------------------------------------------------------------------------------------------------
ASU 2018-02: INCOME STATEMENT -- REPORTING COMPREHENSIVE INCOME
------------------------------------------------------------------------------------------------------------------
This ASU contains new guidance that permits The company early adopted the ASU effective October 1, 2018 and
entities to reclassify to retained earnings recognized the impact in the period of adoption. As a result, the
tax effects "stranded" in AOCI resulting company reclassified stranded effects resulting from the Tax Act of
from the change in federal tax rate enacted 2017 by decreasing AOCI and increasing retained earnings by
by the Tax Cuts and Jobs Act (the "Tax $83 million.
Reform Act") on December 22, 2017. If
elected, the stranded tax effects for all
items must be reclassified in AOCI,
including, but not limited to, AFS
securities and employee benefits.
------------------------------------------------------------------------------------------------------------------
ASU 2018-14: COMPENSATION -- RETIREMENT BENEFITS -- DEFINED BENEFIT PLANS -- GENERAL (SUBTOPIC 715-20)
------------------------------------------------------------------------------------------------------------------
This ASU improves the effectiveness of Effective for the year ended December 31, 2018 the Company
disclosures related to defined benefit plans early adopted new guidance that amends the disclosure guidance
in the notes to the financial statements. for employee benefit plans, applied on a retrospective basis to all
The amendments in this ASU remove periods presented. See Note 13 for additional information
disclosures that are no longer considered regarding the Company's employee benefit plans.
cost beneficial, clarify the specific
requirements of disclosures, and add new,
relevant disclosure requirements.
|
Future Adoption of New Accounting Pronouncements
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-17: CONSOLIDATION (TOPIC 810): TARGETED IMPROVEMENTS TO RELATED PARTY GUIDANCE FOR
VARIABLE INTEREST ENTITIES
---------------------------------------------------------------------------------------------------
This ASU provides guidance Effective for fiscal years Management currently is
requiring that indirect beginning after December 15, evaluating the impact that
interests held through 2019, and interim periods adoption of this guidance
related parties in common within those fiscal years. will have on the Company's
control arrangements be Early adoption is permitted. consolidated financial
considered on a proportional All entities are required to statements and
basis for determining whether apply the amendments in this related disclosures.
fees paid to decision makers update retrospectively with a
and service providers are cumulative-effect adjustment
variable interests. to retained earnings at the
beginning of the earliest
period presented.
---------------------------------------------------------------------------------------------------
ASU 2018-13: FAIR VALUE MEASUREMENT (TOPIC 820)
---------------------------------------------------------------------------------------------------
This ASU improves the Effective for fiscal years Management currently is
effectiveness of fair value beginning after December 15, evaluating the impact of the
disclosures in the notes to 2019. Early adoption is guidance on the Company's
financial statements. permitted, with the option to financial statement
Amendments in this ASU impact early adopt amendments to disclosures but has concluded
the disclosure requirements remove or modify disclosures, that this guidance will not
in Topic 820, including the with full adoption of impact the Company's
removal, modification and additional disclosure consolidated financial
addition to existing requirements delayed until position or results
disclosure requirements. the stated effective date. of operations.
Amendments on changes in
unrealized gains and losses,
the range and weighted
average of significant
unobservable inputs used to
develop Level 3 fair value
measurements, and the
narrative description of
measurement uncertainty
should be applied
prospectively. All other
amendments should be
applied retrospectively.
---------------------------------------------------------------------------------------------------
|
F-12
EFFECT ON THE FINANCIAL
STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------
ASU 2018-12: FINANCIAL SERVICES -- INSURANCE (TOPIC 944)
---------------------------------------------------------------------------------------------------
This ASU provides targeted Effective date for public Management currently is
improvements to existing business entities for fiscal evaluating the impact that
recognition, measurement, years and interim periods adoption of this guidance
presentation, and disclosure with those fiscal years, will have on the Company's
requirements for beginning after December 31, consolidated financial
long-duration contracts 2020. Early adoption statements and related
issued by an insurance is permitted. disclosures. The Company has
entity. The ASU primarily formed a project
impacts four key For the liability for future implementation team to work
areas, including: policyholder benefits for on compiling all significant
traditional and limited information needed to assess
Measurement of the liability payment contracts, companies the impact of the new
for future policy benefits can elect one of two adoption guidance, including changes
for traditional and limited methods. Companies can either to system requirements and
payment contracts. The ASU elect a modified internal controls. The
requires companies to review, retrospective transition Company expects adoption of
and if necessary update, cash method applied to contracts the ASU will have a
flow assumptions at least in force as of the beginning significant impact on its
annually for of the earliest period consolidated financial
non-participating traditional presented on the basis of condition, results of
and limited-payment insurance their existing carrying operations, cash flows and
contracts. Interest rates amounts, adjusted for the required disclosures, as well
used to discount the removal of any related as processes and controls.
liability will need to be amounts in AOCI or a full
updated quarterly using an retrospective transition
upper medium grade (low method using actual
credit risk) fixed-income historical experience
instrument yield. information as of contract
inception. The same adoption
Measurement of market risk method must be used for
benefits ("MRBs"). MRBs, as deferred acquisition costs.
defined under the ASU, will
encompass certain GMxB For MRBs, the ASU should be
features associated with applied retrospectively as of
variable annuity products and the earliest period presented
other general account by a retrospective
annuities with other than application to all prior
nominal market risk. The ASU periods.
requires MRBs to be measured
at fair value with changes in For deferred acquisition
value attributable to changes costs, companies can elect
in instrument-specific credit one of two adoption
risk recognized in OCI. methods. Companies can either
elect a modified
Amortization of deferred retrospective transition
acquisition costs. The ASU method applied to contracts
simplifies the amortization in force as of the beginning
of deferred acquisition costs of the earliest period
and other balances amortized presented on the basis of
in proportion to premiums, their existing carrying
gross profits, or gross amounts, adjusted for the
margins, requiring such removal of any related
balances to be amortized on a amounts in AOCI or a full
constant level basis over the retrospective transition
expected term of the method using actual
contracts. Deferred costs historical experience
will be required to be information as of contract
written off for unexpected inception. The same adoption
contract terminations but method must be used for the
will not be subject to liability for future
impairment testing. policyholder benefits for
traditional and limited
Expanded footnote payment contracts.
disclosures. The ASU requires
additional disclosures
including disaggregated
rollforwards of beginning to
ending balances of the
liability for future policy
benefits, policyholder
account balances, MRBs,
separate account liabilities
and deferred acquisition
costs. Companies will also be
required to disclose
information about significant
inputs, judgements,
assumptions and methods used
in measurement.
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|
F-13
EFFECT ON THE FINANCIAL STATEMENT OR OTHER
DESCRIPTION EFFECTIVE DATE AND METHOD OF ADOPTION SIGNIFICANT MATTERS
---------------------------------------------------------------------------------------------------------------
ASU 2018-07: COMPENSATION -- STOCK COMPENSATION (TOPIC 718)
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This ASU contains new Effective for public business The Company has granted
guidance that largely aligns entities for fiscal years share-based payment awards
the accounting for beginning after December 15, only to employees as defined
share-based payment awards 2018, including interim by accounting guidance and
issued to employees and periods, with early does not expect this guidance
non-employees. adoption permitted. will have a material impact
on its consolidated
financial statements.
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ASU 2017-12: DERIVATIVES AND HEDGING (TOPIC 815)
---------------------------------------------------------------------------------------------------------------
The amendments in this ASU Effective for fiscal years Management does not expect
better align an entity's risk beginning after December 15, this guidance will have a
management activities and 2018 and interim periods material impact on the
financial reporting for within those fiscal years, Company's consolidated
hedging relationships through with early adoption financial statements.
changes to both the permitted. The effect of
designation and measurement adoption should be reflected
guidance for qualifying as of the beginning of the
hedging relationships and the fiscal year of adoption.
presentation of hedge results.
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ASU 2017-08: RECEIVABLES -- NONREFUNDABLE FEES AND OTHER COSTS (SUBTOPIC 310-20)
---------------------------------------------------------------------------------------------------------------
This ASU requires certain Effective for interim and Management does not expect
premiums on callable debt annual periods beginning this guidance will have a
securities to be amortized to after December 15, 2018, with material impact on the
the earliest call date and is early adoption permitted and Company's consolidated
intended to better align is to be applied on a financial statements.
interest income recognition modified retrospective basis.
with the manner in which
market participants price
these instruments.
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ASU 2016-13: FINANCIAL INSTRUMENTS -- CREDIT LOSSES (TOPIC 326)
---------------------------------------------------------------------------------------------------------------
This ASU contains new Effective for fiscal years Management currently is
guidance which introduces an beginning after December 15, evaluating the impact that
approach based on expected 2019, including interim adoption of this guidance
losses to estimate credit periods within those fiscal will have on the Company's
losses on certain types of years. Early adoption is consolidated financial
financial instruments. It permitted for fiscal years statements. Although early
also modifies the impairment beginning after December 15, adoption is permitted, the
model for available-for-sale 2018, including interim Company expects to adopt ASU
debt securities and provides periods within those fiscal 2016-13 when it becomes
for a simplified accounting years. These amendments effective for the Company on
model for purchased financial should be applied through a January 1, 2020.
assets with credit cumulative-effect adjustment
deterioration since to retained earnings as of
their origination. the beginning of the first
reporting period in which the
guidance is effective.
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ASU 2016-02: LEASES (TOPIC 842)
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This ASU contains revised Effective for fiscal years The Company adopted ASU
guidance to lease accounting beginning after December 15, 2016-02, as well as other
that will require lessees to 2018, including interim related clarifications and
recognize on the balance periods within those fiscal interpretive guidance issued
sheet a "right-of-use" asset years, for public business by the FASB effective
and a lease liability for entities. Early application January 1, 2019. The Company
virtually all lease is permitted. Lessees and has identified its
arrangements, including those lessors are required to apply significant existing leases,
embedded in other contracts. a modified retrospective which primarily include real
Lessor accounting will remain transition approach, which estate leases for office
substantially unchanged from includes optional practical space, that will be impacted
the current model but has expedients that entities may by the new guidance. The
been updated to align with elect to apply. In July 2018, Company's adoption of this
certain changes made to the the FASB issued ASU 2018-11 guidance is expected to
lessee model. which allows for an result in a material impact
additional transition method. on the consolidated balance
The Company will adopt the sheets, however it will not
standard utilizing the have a material impact on the
additional transition method, Consolidated Statement of
which allows entities to Income (Loss). The Company's
initially apply the new adoption of this guidance
leases standard at the will result in the
adoption date. recognition, as of January 1,
2019, of additional right of
use (RoU) operating lease
assets ranging from
$300 million to $400 million
and operating lease
liabilities ranging from
$400 million to $500 million,
respectively.
The adoption of this standard
will not have a significant
impact on opening
retained earnings.
|
F-14
Investments
The carrying values of fixed maturities classified as available-for-sale
("AFS") are reported at fair value. Changes in fair value are reported in
other comprehensive income ("OCI"), net of policy related amounts and
deferred income taxes. The amortized cost of fixed maturities is adjusted
for impairments in value deemed to be other than temporary which are
recognized in Investment gains (losses), net. The redeemable preferred stock
investments that are reported in fixed maturities include real estate
investment trusts ("REIT"), perpetual preferred stock and redeemable
preferred stock. These securities may not have a stated maturity, may not be
cumulative and do not provide for mandatory redemption by the issuer.
The Company determines the fair values of fixed maturities and equity
securities based upon quoted prices in active markets, when available, or
through the use of alternative approaches when market quotes are not readily
accessible or available. These alternative approaches include matrix or
model pricing and use of independent pricing services, each supported by
reference to principal market trades or other observable market assumptions
for similar securities. More specifically, the matrix pricing approach to
fair value is a discounted cash flow methodology that incorporates market
interest rates commensurate with the credit quality and duration of the
investment.
The Company's management, with the assistance of its investment advisors,
monitors the investment performance of its portfolio and reviews AFS
securities with unrealized losses for other-than-temporary impairments
("OTTI"). Integral to this review is an assessment made each quarter, on a
security-by-security basis, by the Company's Investments Under Surveillance
("IUS") Committee, of various indicators of credit deterioration to
determine whether the investment security is expected to recover. This
assessment includes, but is not limited to, consideration of the duration
and severity of the unrealized loss, failure, if any, of the issuer of the
security to make scheduled payments, actions taken by rating agencies,
adverse conditions specifically related to the security or sector, the
financial strength, liquidity and continued viability of the issuer.
If there is no intent to sell or likely requirement to dispose of the fixed
maturity security before its recovery, only the credit loss component of any
resulting OTTI is recognized in income (loss) and the remainder of the fair
value loss is recognized in OCI. The amount of credit loss is the shortfall
of the present value of the cash flows expected to be collected as compared
to the amortized cost basis of the security. The present value is calculated
by discounting management's best estimate of projected future cash flows at
the effective interest rate implicit in the debt security at the date of
acquisition. Projections of future cash flows are based on assumptions
regarding probability of default and estimates regarding the amount and
timing of recoveries. These assumptions and estimates require use of
management judgment and consider internal credit analyses as well as market
observable data relevant to the collectability of the security. For mortgage
and asset-backed securities, projected future cash flows also include
assumptions regarding prepayments and underlying collateral value.
Real estate held for the production of income is stated at depreciated cost
less valuation allowances.
Depreciation of real estate held for production of income is computed using
the straight-line method over the estimated useful lives of the properties,
which generally range from 40 to 50 years.
Policy loans represent funds loaned to policyholders up to the cash
surrender value of the associated insurance policies and are carried at the
unpaid principal balances due to the Company from the policyholders.
Interest income on policy loans is recognized in net investment income at
the contract interest rate when earned. Policy loans are fully
collateralized by the cash surrender value of the associated insurance
policies.
Partnerships, investment companies and joint venture interests that the
Company has control of and has an economic interest in or those that meet
the requirements for consolidation under accounting guidance for
consolidation of VIEs are consolidated. Those that the Company does not have
control of and does not have a majority economic interest in and those that
do not meet the VIE requirements for consolidation are reported on the
equity method of accounting and are reported in other equity investments.
The Company records its interests in certain of these partnerships on a
month or one quarter lag.
Trading securities, which include equity securities and fixed maturities,
are carried at fair value based on quoted market prices, with realized and
unrealized gains (losses) reported in net investment income (loss) in the
statements of Net income (loss).
Corporate owned life insurance ("COLI") has been purchased by the Company
and certain subsidiaries on the lives of certain key employees and the
Company and these subsidiaries are named as beneficiaries under these
policies. COLI is carried at the cash surrender value of the policies. At
December 31, 2018, 2017 and 2016 the carrying value of COLI was
$873 million, $911 million and $892 million, respectively, and is reported
in Other invested assets in the consolidated balance sheets.
Cash and cash equivalents includes cash on hand, demand deposits, money
market accounts, overnight commercial paper and highly liquid debt
instruments purchased with an original maturity of three months or less. Due
to the short-term nature of these investments, the recorded value is deemed
to approximate fair value.
F-15
All securities owned, including U.S. government and agency securities,
mortgage-backed securities, futures and forwards transactions, are reported
in the consolidated financial statements on a trade date basis.
Derivatives
Derivatives are financial instruments whose values are derived from interest
rates, foreign exchange rates, financial indices, values of securities or
commodities, credit spreads, market volatility, expected returns and
liquidity. Values can also be affected by changes in estimates and
assumptions, including those related to counterparty behavior and
non-performance risk used in valuation models. Derivative financial
instruments generally used by the Company include equity, currency, and
interest rate futures, total return and/or other equity swaps, interest rate
swaps and floors, swaptions, variance swaps and equity options, all of which
may be exchange-traded or contracted in the over-the-counter market. All
derivative positions are carried in the consolidated balance sheets at fair
value, generally by obtaining quoted market prices or through the use of
valuation models.
Freestanding derivative contracts are reported in the consolidated balance
sheets either as assets within "Other invested assets" or as liabilities
within "Other liabilities". The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related Credit Support Annex ("CSA") have been
executed. The Company uses derivatives to manage asset/liability risk and
has designated some of those economic relationships under the criteria to
qualify for hedge accounting treatment. All changes in the fair value of the
Company's freestanding derivative positions not designated to hedge
accounting relationships, including net receipts and payments, are included
in "Net derivative gains (losses)" without considering changes in the fair
value of the economically associated assets or liabilities.
The Company is a party to financial instruments and other contracts that
contain "embedded" derivative instruments. At inception, the Company
assesses whether the economic characteristics of the embedded instrument are
"clearly and closely related" to the economic characteristics of the
remaining component of the "host contract" and whether a separate instrument
with the same terms as the embedded instrument would meet the definition of
a derivative instrument. When those criteria are satisfied, the resulting
embedded derivative is bifurcated from the host contract, carried in the
consolidated balance sheets at fair value, and changes in its fair value are
recognized immediately and captioned in the consolidated statements of
income (loss) according to the nature of the related host contract. For
certain financial instruments that contain an embedded derivative that
otherwise would need to be bifurcated and reported at fair value, the
Company instead may elect to carry the entire instrument at fair value.
Securities Repurchase and Reverse Repurchase Agreements
Securities repurchase and reverse repurchase transactions involve the
temporary exchange of securities for cash or other collateral of equivalent
value, with agreement to redeliver a like quantity of the same or similar
securities at a future date prior to maturity at a fixed and determinable
price. Transfers of securities under these agreements to repurchase or
resell are evaluated by the Company to determine whether they satisfy the
criteria for accounting treatment as secured borrowing or lending
arrangements. Agreements not meeting the criteria would require recognition
of the transferred securities as sales or purchases with related forward
repurchase or resale commitments. All of the Company's securities repurchase
transactions are accounted for as collateralized borrowings with the related
obligations distinctly captioned in the consolidated balance sheets.
Earnings from investing activities related to the cash received under the
Company's securities repurchase arrangements are reported in the
consolidated statements of income (loss) as "Net investment income" and the
associated borrowing cost is reported as "Interest expense." The Company has
not actively engaged in securities reverse repurchase transactions.
Commercial and Agricultural Mortgage Loans on Real Estate
Mortgage loans are stated at unpaid principal balances, net of unamortized
discounts and valuation allowances. Valuation allowances are based on the
present value of expected future cash flows discounted at the loan's
original effective interest rate or on its collateral value if the loan is
collateral dependent. However, if foreclosure is or becomes probable, the
collateral value measurement method is used.
For commercial and agricultural mortgage loans, an allowance for credit loss
is typically recommended when management believes it is probable that
principal and interest will not be collected according to the contractual
terms. Factors that influence management's judgment in determining allowance
for credit losses include the following:
. Loan-to-value ratio -- Derived from current loan balance divided by
the fair market value of the property. An allowance for credit loss
is typically recommended when the loan-to-value ratio is in excess of
100%. In the case where the loan-to-value is in excess of 100%, the
allowance for credit loss is derived by taking the difference between
the fair market value (less cost of sale) and the current loan
balance.
. Debt service coverage ratio -- Derived from actual operating earnings
divided by annual debt service. If the ratio is below 1.0x, then the
income from the property does not support the debt.
F-16
. Occupancy -- Criteria varies by property type but low or below market
occupancy is an indicator of sub-par property performance.
. Lease expirations -- The percentage of leases expiring in the
upcoming 12 to 36 months are monitored as a decline in rent and/or
occupancy may negatively impact the debt service coverage ratio. In
the case of single-tenant properties or properties with large tenant
exposure, the lease expiration is a material risk factor.
. Maturity -- Mortgage loans that are not fully amortizing and have
upcoming maturities within the next 12 to 24 months are monitored in
conjunction with the capital markets to determine the borrower's
ability to refinance the debt and/or pay off the balloon balance.
. Borrower/tenant related issues -- Financial concerns, potential
bankruptcy or words or actions that indicate imminent default or
abandonment of property.
. Payment status (current vs. delinquent) -- A history of delinquent
payments may be a cause for concern.
. Property condition -- Significant deferred maintenance observed
during the lenders annual site inspections.
. Other -- Any other factors such as current economic conditions may
call into question the performance of the loan.
Mortgage loans also are individually evaluated quarterly by the Company's
IUS Committee for impairment, including an assessment of related collateral
value. Commercial mortgages 60 days or more past due and agricultural
mortgages 90 days or more past due, as well as all mortgages in the process
of foreclosure, are identified as problem mortgages. Based on its monthly
monitoring of mortgages, a class of potential problem mortgages are also
identified, consisting of mortgage loans not currently classified as problem
mortgages but for which management has doubts as to the ability of the
borrower to comply with the present loan payment terms and which may result
in the loan becoming a problem or being restructured. The decision whether
to classify a performing mortgage loan as a potential problem involves
significant subjective judgments by management as to likely future industry
conditions and developments with respect to the borrower or the individual
mortgaged property.
For problem mortgage loans, a valuation allowance is established to provide
for the risk of credit losses inherent in the lending process. The allowance
includes loan specific reserves for mortgage loans determined to be
non-performing as a result of the loan review process. A non-performing loan
is defined as a loan for which it is probable that amounts due according to
the contractual terms of the loan agreement will not be collected. The
loan-specific portion of the loss allowance is based on the Company's
assessment as to ultimate collectability of loan principal and interest.
Valuation allowances for a non-performing loan are recorded based on the
present value of expected future cash flows discounted at the loan's
effective interest rate or based on the fair value of the collateral if the
loan is collateral dependent. The valuation allowance for mortgage loans can
increase or decrease from period to period based on such factors.
Impaired mortgage loans without provision for losses are mortgage loans
where the fair value of the collateral or the net present value of the
expected future cash flows related to the loan equals or exceeds the
recorded investment. Interest income earned on mortgage loans where the
collateral value is used to measure impairment is recorded on a cash basis.
Interest income on mortgage loans where the present value method is used to
measure impairment is accrued on the net carrying value amount of the loan
at the interest rate used to discount the cash flows. Changes in the present
value attributable to changes in the amount or timing of expected cash flows
are reported as investment gains or losses.
Mortgage loans are placed on nonaccrual status once management believes the
collection of accrued interest is doubtful. Once mortgage loans are
classified as nonaccrual mortgage loans, interest income is recognized under
the cash basis of accounting and the resumption of the interest accrual
would commence only after all past due interest has been collected or the
mortgage loan has been restructured to where the collection of interest is
considered likely.
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized
Investment Gains (Losses)
Realized investment gains (losses) are determined by identification with the
specific asset and are presented as a component of revenue. Changes in the
valuation allowances are included in Investment gains (losses), net.
Realized and unrealized holding gains (losses) on trading and equity
securities are reflected in Net investment income (loss).
Unrealized investment gains (losses) on fixed maturities designated as AFS
held by the Company are accounted for as a separate component of AOCI, net
of related deferred income taxes, as are amounts attributable to certain
pension operations, Closed Block's policyholders' dividend obligation,
insurance liability loss recognition, DAC related to UL policies,
investment-type products and participating traditional life policies.
Changes in unrealized gains (losses) reflect changes in fair value of only
those fixed maturities classified as AFS and do not reflect any change in
fair value of policyholders' account balances and future policy benefits.
F-17
Fair Value of Financial Instruments
Fair value is defined as the exchange price that would be received for an
asset or paid to transfer a liability (an exit price) in the principal or
most advantageous market for the asset or liability in an orderly
transaction between market participants on the measurement date. See Note 7
for additional information regarding determining the fair value of financial
instruments.
Recognition of Insurance Income and Related Expenses
Deposits related to universal life ("UL") and investment-type contracts are
reported as deposits to policyholders' account balances. Revenues from these
contracts consist of fees assessed during the period against policyholders'
account balances for mortality charges, policy administration charges and
surrender charges. Policy benefits and claims that are charged to expense
include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized in income
when due. Benefits and expenses are matched with such income so as to result
in the recognition of profits over the life of the contracts. This match is
accomplished by means of the provision for liabilities for future policy
benefits and the deferral and subsequent amortization of DAC.
For contracts with a single premium or a limited number of premium payments
due over a significantly shorter period than the total period over which
benefits are provided, premiums are recorded as revenue when due with any
excess profit deferred and recognized in income in a constant relationship
to insurance in-force or, for annuities, the amount of expected future
benefit payments.
Premiums from individual health contracts are recognized as income over the
period to which the premiums relate in proportion to the amount of insurance
protection provided.
DAC
Acquisition costs that vary with and are primarily related to the
acquisition of new and renewal insurance business, reflecting incremental
direct costs of contract acquisition with independent third parties or
employees that are essential to the contract transaction, as well as the
portion of employee compensation, including payroll fringe benefits and
other costs directly related to underwriting, policy issuance and
processing, medical inspection, and contract selling for successfully
negotiated contracts including commissions, underwriting, agency and policy
issue expenses, are deferred. In each reporting period, DAC is amortized to
Amortization of deferred policy acquisition costs of the accrual of imputed
interest on DAC balances. DAC is subject to recoverability testing at the
time of policy issue and loss recognition testing at the end of each
accounting period.
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings.
AMORTIZATION POLICY
In accordance with the guidance for the accounting and reporting by
insurance enterprises for certain long-duration contracts and participating
contracts and for realized gains and losses from the sale of investments,
current and expected future profit margins for products covered by this
guidance are examined regularly in determining the amortization of DAC.
DAC associated with certain variable annuity products is amortized based on
estimated assessments, with DAC on the remainder of variable annuities, UL
and investment-type products amortized over the expected total life of the
contract group as a constant percentage of estimated gross profits arising
principally from investment results, Separate Accounts fees, mortality and
expense margins and surrender charges based on historical and anticipated
future experience, embedded derivatives and changes in the reserve of
products that have indexed features such as SCS IUL and MSO, updated at the
end of each accounting period. When estimated gross profits are expected to
be negative for multiple years of a contract life, DAC is amortized using
the present value of estimated assessments. The effect on the amortization
of DAC of revisions to estimated gross profits or assessments is reflected
in earnings (loss) in the period such estimated gross profits or assessments
are revised. A decrease in expected gross profits or assessments would
accelerate DAC amortization. Conversely, an increase in expected gross
profits or assessments would slow DAC amortization. The effect on the DAC
assets that would result from realization of unrealized gains (losses) is
recognized with an offset to AOCI in consolidated equity as of the balance
sheet date.
F-18
A significant assumption in the amortization of DAC on variable annuities
and, to a lesser extent, on variable and interest-sensitive life insurance
relates to projected future separate account performance. Management sets
estimated future gross profit or assessment assumptions related to separate
account performance using a long-term view of expected average market
returns by applying a Reversion to the Mean ("RTM") approach, a commonly
used industry practice. This future return approach influences the
projection of fees earned, as well as other sources of estimated gross
profits. Returns that are higher than expectations for a given period
produce higher than expected account balances, increase the fees earned
resulting in higher expected future gross profits and lower DAC amortization
for the period. The opposite occurs when returns are lower than expected.
In applying this approach to develop estimates of future returns, it is
assumed that the market will return to an average gross long-term return
estimate, developed with reference to historical long-term equity market
performance. Management has set limitations as to maximum and minimum future
rate of return assumptions, as well as a limitation on the duration of use
of these maximum or minimum rates of return. At December 31, 2018, the
average gross short-term and long-term annual return estimate on variable
and interest-sensitive life insurance and variable annuities was 7.0% (4.7%
net of product weighted average Separate Accounts fees), and the gross
maximum and minimum short-term annual rate of return limitations were 15.0%
(12.7% net of product weighted average Separate Accounts fees) and 0.0%
((2.3)% net of product weighted average Separate Accounts fees),
respectively. The maximum duration over which these rate limitations may be
applied is five years. This approach will continue to be applied in future
periods. These assumptions of long-term growth are subject to assessment of
the reasonableness of resulting estimates of future return assumptions.
In addition, projections of future mortality assumptions related to variable
and interest-sensitive life products are based on a long-term average of
actual experience. This assumption is updated periodically to reflect recent
experience as it emerges. Improvement of life mortality in future periods
from that currently projected would result in future deceleration of DAC
amortization. Conversely, deterioration of life mortality in future periods
from that currently projected would result in future acceleration of DAC
amortization.
Other significant assumptions underlying gross profit estimates for UL and
investment type products relate to contract persistency and General Account
investment spread.
For participating traditional life policies (substantially all of which are
in the Closed Block), DAC is amortized over the expected total life of the
contract group as a constant percentage based on the present value of the
estimated gross margin amounts expected to be realized over the life of the
contracts using the expected investment yield. At December 31, 2018, the
average rate of assumed investment yields, excluding policy loans, for the
Company was 4.7% grading to 4.3% over six years. Estimated gross margins
include anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. The effect on the accumulated
amortization of DAC of revisions to estimated gross margins is reflected in
earnings in the period such estimated gross margins are revised. The effect
on the DAC assets that would result from realization of unrealized gains
(losses) is recognized with an offset to AOCI in consolidated equity as of
the balance sheet date. Many of the factors that affect gross margins are
included in the determination of the Company's dividends to these
policyholders. DAC adjustments related to participating traditional life
policies do not create significant volatility in results of operations as
the Closed Block recognizes a cumulative policyholder dividend obligation
expense in "Policyholders' dividends," for the excess of actual cumulative
earnings over expected cumulative earnings as determined at the time of
demutualization.
DAC associated with non-participating traditional life policies are
amortized in proportion to anticipated premiums. Assumptions as to
anticipated premiums are estimated at the date of policy issue and are
consistently applied during the life of the contracts. Deviations from
estimated experience are reflected in income (loss) in the period such
deviations occur. For these contracts, the amortization periods generally
are for the total life of the policy. DAC related to these policies are
subject to recoverability testing as part of the Company's premium
deficiency testing. If a premium deficiency exists, DAC are reduced by the
amount of the deficiency or to zero through a charge to current period
earnings (loss). If the deficiency exceeds the DAC balance, the reserve for
future policy benefits is increased by the excess, reflected in earnings
(loss) in the period such deficiency occurs.
For some products, policyholders can elect to modify product benefits,
features, rights or coverages that occur by the exchange of a contract for a
new contract, or by amendment, endorsement, or rider to a contract, or by
election or coverage within a contract. These transactions are known as
internal replacements. If such modification substantially changes the
contract, the associated DAC is written off immediately through income and
any new deferrable costs associated with the replacement contract are
deferred. If the modification does not substantially change the contract,
the DAC amortization on the original contract will continue and any
acquisition costs associated with the related modification are expensed.
Reinsurance
For each of its reinsurance agreements, the Company determines whether the
agreement provides indemnification against loss or liability relating to
insurance risk in accordance with applicable accounting standards. Cessions
under reinsurance agreements do not discharge the
F-19
Company's obligations as the primary insurer. The Company reviews all
contractual features, including those that may limit the amount of insurance
risk to which the reinsurer is subject or features that delay the timely
reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the
inception of the reinsurance agreement. The net cost of reinsurance is
recorded as an adjustment to DAC and recognized as a component of other
expenses on a basis consistent with the way the acquisition costs on the
underlying reinsured contracts would be recognized. Subsequent amounts
paid (received) on the reinsurance of in-force blocks, as well as amounts
paid (received) related to new business, are recorded as Premiums
ceded (assumed); and Amounts due from reinsurers (Amounts due to reinsurers)
are established.
Amounts currently recoverable under reinsurance agreements are included in
Amounts due from reinsurers and amounts currently payable are included in
Amounts due to reinsurers. Assets and liabilities relating to reinsurance
agreements with the same reinsurer may be recorded net on the balance sheet,
if a right of offset exists within the reinsurance agreement. In the event
that reinsurers do not meet their obligations to the Company under the terms
of the reinsurance agreements, reinsurance recoverable balances could become
uncollectible. In such instances, reinsurance recoverable balances are
stated net of allowances for uncollectible reinsurance.
Premiums, Policy charges and fee income and Policyholders' benefits include
amounts assumed under reinsurance agreements and are net of reinsurance
ceded. Amounts received from reinsurers for policy administration are
reported in other revenues. With respect to GMIBs, a portion of the directly
written GMIBs are accounted for as insurance liabilities, but the associated
reinsurance agreements contain embedded derivatives. These embedded
derivatives are included in GMIB reinsurance contract asset, at fair value
with changes in estimated fair value reported in Net derivative gains
(losses).
If the Company determines that a reinsurance agreement does not expose the
reinsurer to a reasonable possibility of a significant loss from insurance
risk, the Company records the agreement using the deposit method of
accounting. Deposits received are included in Other liabilities and deposits
made are included within premiums, reinsurance and other receivables. As
amounts are paid or received, consistent with the underlying contracts, the
deposit assets or liabilities are adjusted. Interest on such deposits is
recorded as other revenues or other expenses, as appropriate. Periodically,
the Company evaluates the adequacy of the expected payments or recoveries
and adjusts the deposit asset or liability through other revenues or other
expenses, as appropriate.
For reinsurance contracts other than those accounted for as derivatives,
reinsurance recoverable balances are calculated using methodologies and
assumptions that are consistent with those used to calculate the direct
liabilities.
Policyholder Bonus Interest Credits
Policyholder bonus interest credits are offered on certain deferred annuity
products in the form of either immediate bonus interest credited or enhanced
interest crediting rates for a period of time. The interest crediting
expense associated with these policyholder bonus interest credits is
deferred and amortized over the lives of the underlying contracts in a
manner consistent with the amortization of DAC. Unamortized balances are
included in Other assets in the consolidated balance sheets and amortization
is included in Interest credited to policyholders' account balances in the
consolidated statements of income (loss).
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances relate to contracts or contract features
where the Company has no significant insurance risk. This liability
represents the contract value that has accrued to the benefit of the
policyholder as of the balance sheet date.
For participating traditional life insurance policies, future policy benefit
liabilities are calculated using a net level premium method on the basis of
actuarial insurance assumptions equal to guaranteed mortality and dividend
fund interest rates. The liability for annual dividends represents the
accrual of annual dividends earned. Terminal dividends are accrued in
proportion to gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on the
basis of actuarial assumptions as to mortality, persistency and interest
established at policy issue. Assumptions established at policy issue as to
mortality and persistency are based on the Company's experience that,
together with interest and expense assumptions, includes a margin for
adverse deviation. Benefit liabilities for traditional annuities during the
accumulation period are equal to accumulated policyholders' fund balances
and, after annuitization, are equal to the present value of expected future
payments. Interest rates used in establishing such liabilities range from
4.5% to 6.3% (weighted average of 5.0%) for approximately 99.2% of life
insurance liabilities and from 1.6% to 5.5% (weighted average of 4.8%) for
annuity liabilities.
F-20
Individual health benefit liabilities for active lives are estimated using
the net level premium method and assumptions as to future morbidity,
withdrawals and interest. Benefit liabilities for disabled lives are
estimated using the present value of benefits method and experience
assumptions as to claim terminations, expenses and interest. While
management believes its disability income ("DI") reserves have been
calculated on a reasonable basis and are adequate, there can be no assurance
reserves will be sufficient to provide for future liabilities.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for a product are insufficient to provide for
expected future policy benefits and expenses for that product, DAC is
written off and thereafter, if required, a premium deficiency reserve is
established by a charge to earnings.
Funding agreements are also reported in Policyholders' account balances in
the consolidated balance sheets. As a member of the Federal Home Loan Bank
of New York ("FHLBNY"), the Company has access to collateralized borrowings.
The Company may also issue funding agreements to the FHLBNY. Both the
collateralized borrowings and funding agreements would require the Company
to pledge qualified mortgage-backed assets and/or government securities as
collateral.
The Company has issued and continues to offer certain variable annuity
products with guaranteed minimum death benefits ("GMDB") and/or contain a
guaranteed minimum living benefit ("GMLB," and together with GMDB, the "GMxB
features") which, if elected by the policyholder after a stipulated waiting
period from contract issuance, guarantees a minimum lifetime annuity based
on predetermined annuity purchase rates that may be in excess of what the
contract account value can purchase at then-current annuity purchase rates.
This minimum lifetime annuity is based on predetermined annuity purchase
rates applied to a guaranteed minimum income benefit ("GMIB") base. The
Company previously issued certain variable annuity products with and
guaranteed income benefit ("GIB") features, guaranteed withdrawal benefit
for life ("GWBL"), guaranteed minimum withdrawal benefit ("GMWB") and
guaranteed minimum accumulation benefit ("GMAB") features. The Company has
also assumed reinsurance for products with GMxB features.
Reserves for products that have GMIB features, but do not have no-lapse
guarantee features, and products with GMDB features are determined by
estimating the expected value of death or income benefits in excess of the
projected contract accumulation value and recognizing the excess over the
estimated life based on expected assessments (i.e., benefit ratio). The
determination of this estimated liability is based on models that involve
numerous estimates and subjective judgments, including those regarding
expected market rates of return and volatility, contract surrender and
withdrawal rates, mortality experience, and, for contracts with the GMIB
feature, GMIB election rates. Assumptions regarding separate account
performance used for purposes of this calculation are set using a long-term
view of expected average market returns by applying a RTM approach,
consistent with that used for DAC amortization. There can be no assurance
that actual experience will be consistent with management's estimates.
Products that have a GMIB feature with a no-lapse guarantee rider
("GMIBNLG"), GIB, GWBL, GMWB and GMAB features and the assumed products with
GMIB features (collectively "GMxB derivative features") are considered
either freestanding or embedded derivatives and discussed below under
("Embedded and Freestanding Insurance Derivatives").
After the initial establishment of reserves, premium deficiency and loss
recognition tests are performed each period end using best estimate
assumptions as of the testing date without provisions for adverse deviation.
When the liabilities for future policy benefits plus the present value of
expected future gross premiums for the aggregate product group are
insufficient to provide for expected future policy benefits and expenses for
that line of business (i.e., reserves net of any DAC asset), DAC would first
be written off and thereafter, if required, a premium deficiency reserve
would be established by a charge to earnings. Premium deficiency reserves
have been recorded for the group single premium annuity business, certain
interest-sensitive life contracts, structured settlements, individual
disability income and major medical. Additionally, in certain instances the
policyholder liability for a particular line of business may not be
deficient in the aggregate to trigger loss recognition, but the pattern of
earnings may be such that profits are expected to be recognized in earlier
years followed by losses in later years. This pattern of profits followed by
losses is exhibited in our VISL business and is generated by the cost
structure of the product or secondary guarantees in the contract. The
secondary guarantee ensures that, subject to specified conditions, the
policy will not terminate and will continue to provide a death benefit even
if there is insufficient policy value to cover the monthly deductions and
charges. We accrue for these Profits Followed by Losses ("PFBL") using a
dynamic approach that changes over time as the projection of future losses
change.
Embedded and Freestanding Insurance Derivatives
Reserves for products considered either embedded or freestanding derivatives
are measured at estimated fair value separately from the host variable
annuity product, with changes in estimated fair value reported in Net
derivative gains (losses). The estimated fair values of these derivatives
are determined based on the present value of projected future benefits minus
the present value of projected future fees attributable to the guarantee.
The projections of future benefits and future fees require capital markets
and actuarial assumptions, including expectations concerning policyholder
behavior. A risk-neutral valuation methodology is used under which the cash
flows from the guarantees are projected under multiple capital market
scenarios using observable risk-free rates.
F-21
Additionally, the Company cedes and assumes reinsurance of products with
GMxB features, which are considered either an embedded or freestanding
derivative and measured at fair value. The GMxB reinsurance contract asset
and liabilities' fair values reflect the present value of reinsurance
premiums and recoveries and risk margins over a range of market-consistent
economic scenarios.
Changes in the fair value of embedded and freestanding derivatives are
reported in Net derivative gains (losses). Embedded derivatives in direct
and assumed reinsurance contracts are reported in Future policyholders'
benefits and other policyholders' liabilities and embedded derivatives in
ceded reinsurance contracts are reported in the GMIB reinsurance contract
asset, at fair value in the consolidated balance sheets.
Embedded and freestanding insurance derivatives fair values are determined
based on the present value of projected future benefits minus the present
value of projected future fees. At policy inception, a portion of the
projected future guarantee fees to be collected from the policyholder equal
to the present value of projected future guaranteed benefits is attributed
to the embedded derivative. The percentage of fees included in the fair
value measurement is locked-in at inception. Fees above those amounts
represent "excess" fees and are reported in Policy charges and fee income.
Policyholders' Dividends
The amount of policyholders' dividends to be paid (including dividends on
policies included in the Closed Block) is determined annually by the board
of directors of the issuing insurance company. The aggregate amount of
policyholders' dividends is related to actual interest, mortality, morbidity
and expense experience for the year and judgment as to the appropriate level
of statutory surplus to be retained by the Company.
Separate Accounts
Generally, Separate Accounts established under New York State and Arizona
State Insurance Law are not chargeable with liabilities that arise from any
other business of the Company. Separate Accounts assets are subject to
General Account claims only to the extent Separate Accounts assets exceed
separate accounts liabilities. Assets and liabilities of the Separate
Account represent the net deposits and accumulated net investment earnings
(loss) less fees, held primarily for the benefit of policyholders, and for
which the Company does not bear the investment risk. Separate Accounts
assets and liabilities are shown on separate lines in the consolidated
balance sheets. Assets held in Separate Accounts are reported at quoted
market values or, where quoted values are not readily available or
accessible for these securities, their fair value measures most often are
determined through the use of model pricing that effectively discounts
prospective cash flows to present value using appropriate sector-adjusted
credit spreads commensurate with the security's duration, also taking into
consideration issuer-specific credit quality and liquidity. Investment
performance (including investment income, net investment gains (losses) and
changes in unrealized gains (losses)) and the corresponding amounts credited
to policyholders of such Separate Accounts are offset within the same line
in the consolidated statements of income (loss). For 2018, 2017 and 2016,
investment results of such Separate Accounts were losses of $7.2 billion,
and gains of $16.7 billion and $8.2 billion, respectively.
Deposits to Separate Accounts are reported as increases in Separate Accounts
assets and liabilities and are not reported in revenues or expenses.
Mortality, policy administration and surrender charges on all policies
including those funded by Separate Accounts are included in revenues.
The Company reports the General Account's interests in Separate Accounts as
Other trading in the consolidated balance sheets.
Broker-Dealer Revenues, Receivables and Payables
AXA Advisors and certain of the Company's other subsidiaries provide
investment management, brokerage and distribution services for affiliates
and third parties. Third-party revenues earned from these services are
reported in Other income in the Company's consolidated statement of income
(loss).
Receivables from and payables to clients include amounts due on cash and
margin transactions. Securities owned by customers are held as collateral
for receivables; such collateral is not reflected in the consolidated
financial statements.
Internal-use Software
Capitalized internal-use software, included in Other assets in the
consolidated balance sheets, is amortized on a straight-line basis over the
estimated useful life of the software that ranges between three and five
years. Capitalized amounts are periodically tested for impairment in
accordance with the guidance on impairment of long-lived assets. An
immediate charge to earnings is recognized if capitalized software costs no
longer are deemed to be recoverable. In addition, service potential is
periodically reassessed to determine whether facts and circumstances have
compressed the software's useful life such that acceleration of amortization
over a shorter period than initially determined would be required.
F-22
Long-Term Debt
Liabilities for long-term debt are primarily carried at an amount equal to
unpaid principal balance, net of unamortized discount or premium and debt
issue costs. Original-issue discount or premium and debt-issue costs are
recognized as a component of interest expense over the period the debt is
expected to be outstanding, using the interest method of amortization.
Interest expense is generally presented within Interest expense in the
consolidated statements of income (loss). See Note 11 for additional
information regarding long-term debt.
Income Taxes
The Company and certain of its consolidated subsidiaries and affiliates file
a consolidated federal income tax return. The Company provides for federal
and state income taxes currently payable, as well as those deferred due to
temporary differences between the financial reporting and tax bases of
assets and liabilities. Current federal income taxes are charged or credited
to operations based upon amounts estimated to be payable or recoverable as a
result of taxable operations for the current year. Deferred income tax
assets and liabilities are recognized based on the difference between
financial statement carrying amounts and income tax bases of assets and
liabilities using enacted income tax rates and laws. Valuation allowances
are established when management determines, based on available information,
that it is more likely than not that deferred tax assets will not be
realized.
Under accounting for uncertainty in income taxes guidance, the Company
determines whether it is more likely than not that a tax position will be
sustained upon examination by the appropriate taxing authorities before any
part of the benefit can be recorded in the consolidated financial
statements. Tax positions are then measured at the largest amount of benefit
that is greater than 50% likely of being realized upon settlement.
Recognition of Investment Management and Service Fees and Related Expenses
INVESTMENT MANAGEMENT, ADVISORY AND SERVICE FEES
Reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are investment management and
administrative service fees earned by AXA Equitable Funds Management Group,
LLC ("AXA Equitable FMG") as well as certain asset-based fees associated
with insurance contracts.
AXA Equitable FMG provides investment management and administrative
services, such as fund accounting and compliance services, to AXA Premier
VIP Trust ("VIP Trust"), EQ Advisors Trust ("EQAT") and 1290 Funds as well
as two private investment trusts established in the Cayman Islands, AXA
Allocation Funds Trust and AXA Offshore Multimanager Funds Trust
(collectively, the "Other AXA Trusts"). The contracts supporting these
revenue streams create a distinct, separately identifiable performance
obligation for each day the assets are managed for the performance of a
series of services that are substantially the same and have the same pattern
of transfer to the customer. Accordingly, these investment management,
advisory, and administrative service base fees are recorded over time as
services are performed and entitle the Company to variable consideration.
Base fees, generally calculated as a percentage of assets under management
("AUM"), are recognized as revenue at month-end when the transaction price
no longer is variable and the value of the consideration is determined.
These fees are not subject to claw back and there is minimal probability
that a significant reversal of the revenue recorded will occur.
Sub-advisory and sub-administrative expenses associated with these services
are calculated and recorded as the related services are performed in Other
operating costs and expense in the consolidated statements of income (loss)
as the Company is acting in a principal capacity in these transactions and,
as such, reflects these revenues and expenses on a gross basis.
DISTRIBUTION SERVICES
Revenues from distribution services include fees received as partial
reimbursement of expenses incurred in connection with the sale of certain
mutual funds and the 1290 Funds and for the distribution primarily of EQAT
and VIP Trust shares to separate accounts in connection with the sale of
variable life and annuity contracts. The amount and timing of revenues
recognized from performance of these distribution services often is
dependent upon the contractual arrangements with the customer and the
specific product sold as further described below.
Most open-end management investment companies, such as U.S. funds and the
EQAT and VIP Trusts and the 1290 Funds, have adopted a plan under Rule 12b-1
of the Investment Company Act that allows for certain share classes to pay
out of assets, distribution and service fees for the distribution and sale
of its shares ("12b-1 Fees"). These open-end management investment companies
have such agreements with the Company, and the Company has selling and
distribution agreements pursuant to which it pays sales commissions to the
financial intermediaries that distribute the shares. These agreements may be
terminated by either party upon notice (generally 30 days) and do not
obligate the financial intermediary to sell any specific amount of shares.
F-23
The Company records 12b-1 fees monthly based upon a percentage of the net
asset value ("NAV") of the funds. At month-end, the variable consideration
of the transaction price is no longer constrained as the NAV can be
calculated and the value of consideration is determined. These services are
separate and distinct from other asset management services as the customer
can benefit from these services independently of other services. The Company
accrues the corresponding 12b-1 fees paid to sub-distributors monthly as the
expenses are incurred. The Company is acting in a principal capacity in
these transactions; as such, these revenues and expenses are recorded on a
gross basis in the consolidated statements of income (loss).
OTHER REVENUES
Also reported as Investment management and service fees in the Company's
consolidated statements of income (loss) are other revenues from contracts
with customers, primarily consisting of mutual fund reimbursements and other
brokerage income.
OTHER INCOME
Revenues from contracts with customers reported as Other Income in the
Company's consolidated statements of income (loss) primarily consist of
advisory account fees and brokerage commissions from the Company's
subsidiary broker-dealer operations and sales commissions from the Company's
general agent for the distribution of non-affiliate insurers' life insurance
and annuity products. These revenues are recognized at month-end when
constraining factors, such as AUM and product mix, are resolved and the
transaction pricing no longer is variable such that the value of
consideration can be determined.
Discontinued Operations
The results of operations of a component of the Company that has been
disposed of are reported in discontinued operations if certain criteria are
met; such as if the disposal represents a strategic shift that has or will
have a major effect on the Company's operations and financial results. The
results of AB are reflected in the Company's consolidated financial
statements as discontinued operations and, therefore, are presented as
assets and liabilities of disposed subsidiary on the consolidated balance
sheets and net income (loss) from discontinued operations, net of taxes and
noncontrolling interest on the consolidated statements of income
(loss). Intercompany transactions between the Company and AB prior to the
disposal have been eliminated. See Note 19 for information on discontinued
operations and transactions with AB.
Assumption Updates and Model Changes
In 2018, the Company began conducting its annual review of our assumptions
and models during the third quarter, consistent with industry practice. The
annual review encompasses assumptions underlying the valuation of unearned
revenue liabilities, embedded derivatives for our insurance business,
liabilities for future policyholder benefits, DAC and deferred sales
inducement assets ("DSI"). As a result of this review, some assumptions were
updated, resulting in increases and decreases in the carrying values of
these product liabilities and assets.
The net impact of assumption changes in the third quarter of 2018 decreased
Policy charges and fee income by $12 million, decreased Policyholders'
benefits by $684 million, increased Net derivative losses by $1.1 billion,
and decreased the Amortization of DAC by $165 million. This resulted in a
decrease in the third quarter of 2018 in Income (loss) from operations,
before income taxes of $228 million and decreased Net income (loss) by
approximately $187 million.
In 2017, the Company made several assumption updates and model changes,
including the following: (1) updated the expectation of long-term Separate
Accounts volatility used in estimating policyholders' benefits for variable
annuities with GMDB and GMIB guarantees and variable universal life
contracts with secondary guarantees; (2) updated the estimated duration used
to calculate policyholders' benefits for variable annuities with GMDB and
GMIB guarantees and the period over which DAC is amortized; (3) updated
policyholder behavior assumptions based on emerging experience, including
expectations of long-term lapse and partial withdrawal rates for variable
annuities with GMxB features; (4) updated premium funding assumptions for
certain universal life and variable universal life products with secondary
guarantees; (5) completed its periodic review and updated its long-term
mortality assumption for universal, variable universal and traditional life
products; (6) updated the assumption for long-term General Account spread
and yield assumptions in the DAC amortization and loss recognition testing
calculations for universal life, variable universal life and deferred
annuity business lines; (7) updated our maintenance expense assumption for
universal life and variable universal life products; and (8) implemented
other actuarial assumption updates and model changes, resulting in the full
release of the reserve. The net impact of assumption changes in 2017
increased Policyholders' benefits by $23 million, decreased the Amortization
of DAC by $247 million, decreased Policy charges and fee income by
$88 million, increased the fair value of our GMIB reinsurance asset by
$1.5 billion and decreased the fair value of the GMIBNLG liability by
$447 million. This resulted in an increase in Income (loss) from operations,
before income taxes of $1.7 billion and increased Net income by
approximately $1.1 billion.
In 2016, the Company made several assumption updates and model changes
including the following (1) updated the premium funding assumption used in
setting variable life policyholder benefit reserves; (2) made changes in the
model used in calculating premium loads,
F-24
which increased interest sensitive life policyholder benefit reserves;
(3) updated its mortality assumption for certain variable interest-sensitive
life ("VISL") products as a result of favorable mortality experience for
some of its older products and unfavorable mortality experience on some of
its newer products and (4) updated the General Account spread and yield
assumptions for certain VISL products to reflect lower expected investment
yields. The net impact of assumption updates and model changes in 2016
decreased Policyholders' benefits by $135 million, increased the
Amortization of DAC by $193 million, increased Policy charges and fee income
by $35 million, decreased Income (loss) from operations, before income taxes
by $23 million and decreased Net income by approximately $15 million.
Revision of Prior Year Financial Statements
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these mis-classifications were
not material to the financial statements of any period. However, in order to
improve the consistency and comparability of the financial statements,
management revised the consolidated statements of cash flows for the year
ended December 31, 2017. See Note 21 for further information.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification.
The reclassification adjustments for the years ended December 31, 2017 and
2016 are presented in the table below. Capitalization of DAC reclassified to
Compensation and benefits, Commissions and distribution plan payments, and
Other operating costs and expenses reduced the amounts previously reported
in those expense line items, while the capitalization of DAC reclassified
from the Amortization of deferred policy acquisition costs line item
increases that expense line item.
Years Ended December 31,
----------------------------
2017 2016
--------------- ------------
(in millions)
REDUCTIONS TO EXPENSE LINE ITEMS:
Compensation and benefits............................ $ 128 $ 128
Commissions and distribution plan payments........... 443 460
Other operating costs and expenses................... 7 6
--------------- ------------
Total reductions.................................... $ 578 $ 594
=============== ============
INCREASE TO EXPENSE LINE ITEM:
--------------- ------------
Amortization of deferred policy acquisition costs.... $ 578 $ 594
=============== ============
|
F-25
3) INVESTMENTS
Fixed Maturities
The following tables provide information relating to fixed maturities
classified as AFS. As a result of the adoption of "Financial
Instruments -- Recognition and Measurement of Financial Assets and Financial
Liabilities" (ASU 2016-01) on January 1, 2018 (see Note 2), equity
securities are no longer classified and accounted for as available-for-sale
securities.
AVAILABLE-FOR-SALE SECURITIES BY CLASSIFICATION
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED OTTI
COST GAINS LOSSES FAIR VALUE IN AOCI/(4)/
---------- ------------- ----------- ----------- ------------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 26,690 $ 385 $ 699 $ 26,376 $ --
U.S. Treasury, government and agency....... 13,646 143 454 13,335 --
States and political subdivisions.......... 408 47 1 454 --
Foreign governments........................ 515 17 13 519 --
Residential mortgage-backed/(2)/........... 193 9 -- 202 --
Asset-backed/(3)/.......................... 600 1 11 590 2
Redeemable preferred stock................. 440 16 17 439 --
---------- ------------- ----------- ----------- ------------
TOTAL AT DECEMBER 31, 2018................... $ 42,492 $ 618 $ 1,195 $ 41,915 $ 2
========== ============= =========== =========== ============
December 31, 2017:
------------------
Fixed Maturities:
Corporate/(1)/............................. $ 20,596 $ 942 $ 56 $ 21,482 $ --
U.S. Treasury, government and agency....... 12,644 676 185 13,135 --
States and political subdivisions.......... 414 67 -- 481 --
Foreign governments........................ 387 27 5 409 --
Residential mortgage-backed/(2)/........... 236 15 -- 251 --
Asset-backed/(3)/.......................... 93 3 -- 96 2
Redeemable preferred stock................. 461 44 1 504 --
---------- ------------- ----------- ----------- ------------
Total Fixed Maturities.................... 34,831 1,774 247 36,358 2
Equity securities............................ 157 -- -- 157 --
---------- ------------- ----------- ----------- ------------
Total at December 31, 2017................... $ 34,988 $ 1,774 $ 247 $ 36,515 $ 2
========== ============= =========== =========== ============
|
/(1)/Corporate fixed maturities include both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
/(4)/Amounts represent OTTI losses in AOCI, which were not included in
income (loss) in accordance with current accounting guidance.
The contractual maturities of AFS fixed maturities at December 31, 2018 are
shown in the table below. Bonds not due at a single maturity date have been
included in the table in the final year of maturity. Actual maturities may
differ from contractual maturities because borrowers may have the right to
call or prepay obligations with or without call or prepayment penalties.
F-26
CONTRACTUAL MATURITIES OF AVAILABLE-FOR-SALE FIXED MATURITIES
AMORTIZED
COST FAIR VALUE
---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Due in one year or less................................ $ 2,085 $ 2,090
Due in years two through five.......................... 8,087 8,141
Due in years six through ten........................... 14,337 14,214
Due after ten years.................................... 16,750 16,239
---------- ----------
Subtotal............................................ 41,259 40,684
Residential mortgage-backed securities................. 193 202
Asset-backed securities................................ 600 590
Redeemable preferred stock............................. 440 439
---------- ----------
TOTAL AT DECEMBER 31, 2018............................. $ 42,492 $ 41,915
========== ==========
|
The following table shows proceeds from sales, gross gains (losses) from
sales and OTTI for AFS fixed maturities for the years ended December 31,
2018, 2017 and 2016:
FOR THE YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Proceeds from sales............................... $ 7,136 $ 7,232 $ 4,324
========= ========= =========
Gross gains on sales.............................. $ 145 $ 98 $ 111
========= ========= =========
Gross losses on sales............................. $ (103) $ (211) $ (58)
========= ========= =========
Total OTTI........................................ $ (37) $ (13) $ (65)
Non-credit losses recognized in OCI............... -- -- --
--------- --------- ---------
Credit losses recognized in net income (loss)..... $ (37) $ (13) $ (65)
========= ========= =========
|
The following table sets forth the amount of credit loss impairments on AFS
fixed maturities held by the Company at the dates indicated and the
corresponding changes in such amounts:
FIXED MATURITIES -- CREDIT LOSS IMPAIRMENTS
2018 2017
-------- --------
(IN MILLIONS)
Balances at January 1,................................. $ (10) $ (190)
Previously recognized impairments on securities that
matured, paid, prepaid or sold....................... 1 193
Recognized impairments on securities impaired to fair
value this period/(1)/............................... -- --
Impairments recognized this period on securities not
previously impaired.................................. (37) (13)
Additional impairments this period on securities
previously impaired.................................. -- --
Increases due to passage of time on previously
recorded credit losses............................... -- --
Accretion of previously recognized impairments due to
increases in expected cash flows..................... -- --
-------- --------
Balances at December 31,............................... $ (46) $ (10)
======== ========
|
/(1)/Represents circumstances where the Company determined in the current
period that it intends to sell the security or it is more likely than
not that it will be required to sell the security before recovery of the
security's amortized cost.
F-27
Net unrealized investment gains (losses) on fixed maturities classified as
AFS are included in the consolidated balance sheets as a component of AOCI.
The table below presents these amounts as of the dates indicated:
AS OF DECEMBER 31,
--------------------
2018 2017
-------- ----------
(IN MILLIONS)
AFS Securities:
Fixed maturities:
With OTTI loss.......................................... $ -- $ 1
All other............................................... (577) 1,526
-------- ----------
Net Unrealized Gains (Losses).............................. $ (577) $ 1,527
======== ==========
|
Changes in net unrealized investment gains (losses) recognized in AOCI
include reclassification adjustments to reflect amounts realized in Net
income (loss) for the current period that had been part of OCI in earlier
periods. The tables that follow below present a roll-forward of net
unrealized investment gains (losses) recognized in AOCI, split between
amounts related to fixed maturities on which an OTTI loss has been
recognized and all other:
NET UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES WITH OTTI LOSSES
AOCI GAIN
(LOSS)
NET UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
--------------- ------------ --------------- ------------ ----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1 $ 1 $ (1) $ (5) $ (4)
Net investment gains (losses) arising during
the period................................. (1) -- -- -- (1)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (1) -- -- (1)
Deferred income taxes..................... -- -- -- 5 5
Policyholders' liabilities................ -- -- 1 -- 1
--------------- ------------ --------------- ------------ ----------------
BALANCE, DECEMBER 31, 2018................... $ -- $ -- $ -- $ -- $ --
=============== ============ =============== ============ ================
Balance, January 1, 2017..................... $ 19 $ (1) $ (10) $ (3) $ 5
Net investment gains (losses) arising during
the period................................. (18) -- -- -- (18)
Reclassification adjustment:
Included in Net income (loss)............. -- -- -- -- --
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 2 -- -- 2
Deferred income taxes..................... -- -- -- (2) (2)
Policyholders' liabilities................ -- -- 9 -- 9
--------------- ------------ --------------- ------------ ----------------
Balance, December 31, 2017................... $ 1 $ 1 $ (1) $ (5) $ (4)
=============== ============ =============== ============ ================
|
/(1)/Represents "transfers in" related to the portion of OTTI losses
recognized during the period that were not recognized in income (loss)
for securities with no prior OTTI loss.
F-28
ALL OTHER NET UNREALIZED INVESTMENT GAINS (LOSSES) IN AOCI
NET AOCI GAIN (LOSS)
UNREALIZED DEFERRED RELATED TO
GAINS INCOME NET UNREALIZED
(LOSSES) ON POLICYHOLDERS' TAX ASSET INVESTMENT
INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES)
------------- ----------- --------------- ------------- -----------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018..................... $ 1,526 $ (315) $ (232) $ (300) $ 679
Net investment gains (losses) arising during
the period................................. (2,098) -- -- -- (2,098)
Reclassification adjustment:
Included in Net income (loss)............. (5) -- -- -- (5)
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- 354 -- -- 354
Deferred income taxes/(2)/................ -- -- -- 425 425
Policyholders' liabilities................ -- -- 177 -- 177
------------- ----------- --------------- ------------- -----------------
BALANCE, DECEMBER 31, 2018................... $ (577) $ 39 $ (55) $ 125 $ (468)
============= =========== =============== ============= =================
Balance, January 1, 2017..................... $ 428 $ (104) $ (188) $ (47) $ 89
Net investment gains (losses) arising during
the period................................. 1,085 -- -- -- 1,085
Reclassification adjustment:
Included in Net income (loss)............. 13 -- -- -- 13
Excluded from Net income (loss)/(1)/...... -- -- -- -- --
Impact of net unrealized investment gains
(losses) on:
DAC....................................... -- (211) -- -- (211)
Deferred income taxes..................... -- -- -- (253) (253)
Policyholders' liabilities................ -- -- (44) -- (44)
------------- ----------- --------------- ------------- -----------------
Balance, December 31, 2017................... $ 1,526 $ (315) $ (232) $ (300) $ 679
============= =========== =============== ============= =================
|
/(1)/Represents "transfers out" related to the portion of OTTI losses during
the period that were not recognized in income (loss) for securities with
no prior OTTI loss.
/(2)/Includes a $86 million income tax benefit from the impact of adoption of
ASU 2018-02.
F-29
The following tables disclose the fair values and gross unrealized losses of
the 1,471 issues at December 31, 2018 and the 620 issues at December 31,
2017 of fixed maturities that are not deemed to be other-than-temporarily
impaired, aggregated by investment category and length of time that
individual securities have been in a continuous unrealized loss position for
the specified periods at the dates indicated:
LESS THAN 12 MONTHS 12 MONTHS OR LONGER TOTAL
--------------------- --------------------- ---------------------
GROSS GROSS GROSS
UNREALIZED UNREALIZED UNREALIZED
FAIR VALUE LOSSES FAIR VALUE LOSSES FAIR VALUE LOSSES
---------- ---------- ---------- ---------- ---------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Fixed Maturities:
Corporate.................................. $ 8,369 $ 306 $ 6,161 $ 393 $ 14,530 $ 699
U.S. Treasury, government and agency....... 2,636 68 3,154 386 5,790 454
States and political subdivisions.......... -- -- 19 1 19 1
Foreign governments........................ 109 3 76 10 185 13
Residential mortgage-backed................ -- -- 13 -- 13 --
Asset-backed............................... 558 11 6 -- 564 11
Redeemable preferred stock................. 160 12 31 5 191 17
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 11,832 $ 400 $ 9,460 $ 795 $ 21,292 $ 1,195
========== ========== ========== ========== ========== ==========
December 31, 2017:
------------------
Fixed Maturities:
Corporate.................................. $ 2,102 $ 17 $ 1,163 $ 39 $ 3,265 $ 56
U.S. Treasury, government and agency....... 2,150 6 3,005 179 5,155 185
States and political subdivisions.......... 20 -- -- -- 20 --
Foreign governments........................ 11 -- 73 5 84 5
Residential mortgage-backed................ 18 -- -- -- 18 --
Asset-backed............................... 7 -- 2 -- 9 --
Redeemable preferred stock................. 7 -- 12 1 19 1
---------- ---------- ---------- ---------- ---------- ----------
Total........................................ $ 4,315 $ 23 $ 4,255 $ 224 $ 8,570 $ 247
========== ========== ========== ========== ========== ==========
|
The Company's investments in fixed maturities do not include concentrations
of credit risk of any single issuer greater than 10% of the consolidated
equity of the Company, other than securities of the U.S. government, U.S.
government agencies, and certain securities guaranteed by the U.S.
government. The Company maintains a diversified portfolio of corporate
securities across industries and issuers and does not have exposure to any
single issuer in excess of 0.8% of total investments. The largest exposures
to a single issuer of corporate securities held at December 31, 2018 and
2017 were $210 million and $182 million, respectively.
Corporate high yield securities, consisting primarily of public high yield
bonds, are classified as other than investment grade by the various rating
agencies, i.e., a rating below Baa3/BBB- or the National Association of
Insurance Commissioners ("NAIC") designation of 3 (medium investment grade),
4 or 5 (below investment grade) or 6 (in or near default). At December 31,
2018 and 2017, respectively, approximately $1,228 million and
$1,309 million, or 2.9% and 3.8%, of the $42,492 million and $34,831 million
aggregate amortized cost of fixed maturities held by the Company were
considered to be other than investment grade. These securities had net
unrealized (losses) and gains of $(30) million and $5 million at
December 31, 2018 and 2017, respectively.
F-30
At December 31, 2018 and 2017, respectively, the $795 million and
$224 million of gross unrealized losses of twelve months or more were
concentrated in corporate and U.S. Treasury, government and agency
securities. In accordance with the policy described in Note 2, the Company
concluded that an adjustment to income for OTTI for these securities was not
warranted at either December 31, 2018 or 2017. At December 31, 2018, the
Company did not intend to sell the securities nor will it likely be required
to dispose of the securities before the anticipated recovery of their
remaining amortized cost basis.
The Company does not originate, purchase or warehouse residential mortgages
and is not in the mortgage servicing business.
At December 31, 2018, the carrying value of fixed maturities that were
non-income producing for the twelve months preceding that date was
$1 million.
At December 31, 2018 and 2017, respectively, the fair value of the Company's
trading account securities was $15,166 million and $12,277 million. Also at
December 31, 2018 and 2017, respectively, trading account securities
included the General Account's investment in Separate Accounts, which had
carrying values of $48 million and $49 million.
Mortgage Loans
The payment terms of mortgage loans may from time to time be restructured or
modified.
At December 31, 2018 and 2017, the carrying values of problem commercial
mortgage loans on real estate that had been classified as non-accrual loans
were $19 million and $19 million, respectively.
VALUATION ALLOWANCES FOR MORTGAGE LOANS:
The change in the valuation allowance for credit losses for commercial
mortgage loans during the years ended December 31, 2018, 2017 and 2016 was
as follows:
COMMERCIAL MORTGAGE LOANS
------------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
ALLOWANCE FOR CREDIT LOSSES:
Beginning Balance, January 1,................ $ 8 $ 8 $ 6
Charge-offs............................... -- -- --
Recoveries................................ (1) -- (2)
Provision................................. -- -- 4
----------- ----------- -----------
Ending Balance, December 31,................. $ 7 $ 8 $ 8
=========== =========== ===========
Ending Balance, December 31,.................
Individually Evaluated for Impairment..... $ 7 $ 8 $ 8
=========== =========== ===========
|
There were no allowances for credit losses for agricultural mortgage loans
in 2018, 2017 and 2016.
The following tables provide information relating to the loan-to-value and
debt service coverage ratios for commercial and agricultural mortgage loans
at December 31, 2018 and 2017. The values used in these ratio calculations
were developed as part of the periodic review of the commercial and
agricultural mortgage loan portfolio, which includes an evaluation of the
underlying collateral value.
F-31
MORTGAGE LOANS BY LOAN-TO-VALUE AND DEBT SERVICE COVERAGE RATIOS
DEBT SERVICE COVERAGE RATIO/(1)/
-------------------------------------------------
LESS TOTAL
GREATER 1.8X TO 1.5X TO 1.2X TO 1.0X TO THAN MORTGAGE
THAN 2.0X 2.0X 1.8X 1.5X 1.2X 1.0X LOANS
LOAN-TO-VALUE RATIO:/(2)/ --------- ------- -------- ------- ------- ------ --------
(IN MILLIONS)
DECEMBER 31, 2018:
COMMERCIAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 780 $ 21 $ 247 $ 24 $ -- $ -- $ 1,072
50% - 70%.................................. 4,908 656 1,146 325 151 -- 7,186
70% - 90%.................................. 260 -- 117 370 98 -- 845
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 5,948 $ 677 $ 1,510 $ 746 $ 249 $ -- $ 9,130
========= ======= ======== ====== ======= ====== ========
AGRICULTURAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 282 $ 147 $ 267 $ 543 $ 321 $ 51 $ 1,611
50% - 70%.................................. 112 46 246 379 224 31 1,038
70% - 90%.................................. -- -- -- 19 27 -- 46
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 394 $ 193 $ 513 $ 941 $ 572 $ 82 $ 2,695
========= ======= ======== ====== ======= ====== ========
TOTAL MORTGAGE LOANS/(1)/
0% - 50%................................... $ 1,062 $ 168 $ 514 $ 567 $ 321 $ 51 $ 2,683
50% - 70%.................................. 5,020 702 1,392 704 375 31 8,224
70% - 90%.................................. 260 -- 117 389 125 -- 891
90% plus................................... -- -- -- 27 -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Mortgage Loans......................... $ 6,342 $ 870 $ 2,023 $1,687 $ 821 $ 82 $ 11,825
========= ======= ======== ====== ======= ====== ========
December 31, 2017:
Commercial Mortgage Loans/(1)/
0% - 50%................................... $ 742 $ -- $ 320 $ 74 $ -- $ -- $ 1,136
50% - 70%.................................. 4,088 682 1,066 428 145 -- 6,409
70% - 90%.................................. 169 110 196 272 50 -- 797
90% plus................................... -- -- 27 -- -- -- 27
--------- ------- -------- ------ ------- ------ --------
Total Commercial Mortgage Loans.............. $ 4,999 $ 792 $ 1,609 $ 774 $ 195 $ -- $ 8,369
========= ======= ======== ====== ======= ====== ========
Agricultural Mortgage Loans/(1)/
0% - 50%................................... $ 272 $ 149 $ 275 $ 515 $ 316 $ 30 $ 1,557
50% - 70%.................................. 111 46 227 359 221 49 1,013
70% - 90%.................................. -- -- -- 4 -- -- 4
90% plus................................... -- -- -- -- -- -- --
--------- ------- -------- ------ ------- ------ --------
Total Agricultural Mortgage Loans............ $ 383 $ 195 $ 502 $ 878 $ 537 $ 79 $ 2,574
========= ======= ======== ====== ======= ====== ========
|
F-32
Debt Service Coverage Ratio/(1)/
-------------------------------------------------
Less Total
Greater 1.8x to 1.5x to 1.2x to 1.0x to than Mortgage
than 2.0x 2.0x 1.8x 1.5x 1.2x 1.0x Loans
Loan-to-Value Ratio:/(2)/ --------- ------- -------- -------- ------- ----- ---------
(in millions)
Total Mortgage Loans/(1)/
0% - 50%................................... $ 1,014 $ 149 $ 595 $ 589 $ 316 $ 30 $ 2,693
50% - 70%.................................. 4,199 728 1,293 787 366 49 7,422
70% - 90%.................................. 169 110 196 276 50 -- 801
90% plus................................... -- -- 27 -- -- -- 27
-------- ------ -------- -------- ------ ----- ---------
Total Mortgage Loans......................... $ 5,382 $ 987 $ 2,111 $ 1,652 $ 732 $ 79 $ 10,943
======== ====== ======== ======== ====== ===== =========
|
/(1)/The debt service coverage ratio is calculated using the most recently
reported operating income results from property operations divided by
annual debt service.
/(2)/The loan-to-value ratio is derived from current loan balance divided by
the fair market value of the property. The fair market value of the
underlying commercial properties is updated annually.
The following table provides information relating to the aging analysis of
past due mortgage loans at December 31, 2018 and 2017, respectively:
AGE ANALYSIS OF PAST DUE MORTGAGE LOANS
RECORDED
INVESTMENT
90 DAYS OR
90 TOTAL MORE
30-59 60-89 DAYS FINANCING AND
DAYS DAYS OR MORE TOTAL CURRENT RECEIVABLES ACCRUING
------- ------ ------- -------- ---------- ----------- -----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
Commercial................................. $ -- $ -- $ 27 $ 27 $ 9,103 $ 9,130 $ --
Agricultural............................... 18 8 42 68 2,627 2,695 40
------- ------ ------- -------- ---------- ----------- -----------
TOTAL MORTGAGE LOANS......................... $ 18 $ 8 $ 69 $ 95 $ 11,730 $ 11,825 $ 40
======= ====== ======= ======== ========== =========== ===========
December 31, 2017:
------------------
Commercial................................. $ 27 $ -- $ -- $ 27 $ 8,342 $ 8,369 $ --
Agricultural............................... 49 3 22 74 2,500 2,574 22
------- ------ ------- -------- ---------- ----------- -----------
Total Mortgage Loans......................... $ 76 $ 3 $ 22 $ 101 $ 10,842 $ 10,943 $ 22
======= ====== ======= ======== ========== =========== ===========
|
The following table provides information relating to impaired mortgage loans
at December 31, 2018 and 2017, respectively:
IMPAIRED MORTGAGE LOANS
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- --------- --------- -------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ 2 2 -- -- --
--------- --------- --------- -------------- ---------
TOTAL........................................ $ 2 $ 2 $ -- $ -- $ --
========= ========= ========= ============== =========
|
F-33
UNPAID AVERAGE INTEREST
RECORDED PRINCIPAL RELATED RECORDED INCOME
INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED
---------- ---------- ---------- -------------- ----------
(IN MILLIONS)
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (7) $ 27 $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
TOTAL........................................ $ 27 $ 31 $ (7) $ 27 $ --
========== ========== ========== ============== ==========
December 31, 2017:
------------------
With no related allowance recorded:
Commercial mortgage loans -- other......... $ -- $ -- $ -- $ -- $ --
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ -- $ -- $ -- $ -- $ --
========== ========== ========== ============== ==========
With related allowance recorded:
Commercial mortgage loans -- other......... $ 27 $ 31 $ (8) $ 27 $ 2
Agricultural mortgage loans................ -- -- -- -- --
---------- ---------- ---------- -------------- ----------
Total........................................ $ 27 $ 31 $ (8) $ 27 $ 2
========== ========== ========== ============== ==========
|
/(1)/Represents a five-quarter average of recorded amortized cost.
Derivatives and Offsetting Assets and Liabilities
The Company uses derivatives as part of its overall asset/liability risk
management primarily to reduce exposures to equity market and interest rate
risks. Derivative hedging strategies are designed to reduce these risks from
an economic perspective and are all executed within the framework of a
"Derivative Use Plan" approved by applicable states' insurance law.
Derivatives are generally not accounted for using hedge accounting, with the
exception of Treasury Inflation-Protected Securities ("TIPS"), which is
discussed further below. Operation of these hedging programs is based on
models involving numerous estimates and assumptions, including, among
others, mortality, lapse, surrender and withdrawal rates, election rates,
fund performance, market volatility and interest rates. A wide range of
derivative contracts are used in these hedging programs, including exchange
traded equity, currency and interest rate futures contracts, total return
and/or other equity swaps, interest rate swap and floor contracts, bond and
bond-index total return swaps, swaptions, variance swaps and equity options,
credit and foreign exchange derivatives, as well as bond and repo
transactions to support the hedging. The derivative contracts are
collectively managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in capital markets. In addition, as part of its hedging strategy,
the Company targets an asset level for all variable annuity products at or
above a CTE98 level under most economic scenarios (CTE is a statistical
measure of tail risk which quantifies the total asset requirement to sustain
a loss if an event outside a given probability level has occurred. CTE98
denotes the financial resources a company would need to cover the average of
the worst 2% of scenarios.)
DERIVATIVES UTILIZED TO HEDGE EXPOSURE TO VARIABLE ANNUITIES WITH GUARANTEE
FEATURES
The Company has issued and continues to offer variable annuity products with
GMxB features. The risk associated with the GMDB feature is that
under-performance of the financial markets could result in GMDB benefits, in
the event of death, being higher than what accumulated policyholders'
account balances would support. The risk associated with the GMIB feature is
that under-performance of the financial markets could result in the present
value of GMIB, in the event of annuitization, being higher than what
accumulated policyholders' account balances would support, taking into
account the relationship between current annuity purchase rates and the GMIB
guaranteed annuity purchase rates. The risk associated with products that
have a GMxB derivative features liability is that under-performance of the
financial markets could result in the GMxB derivative features' benefits
being higher than what accumulated policyholders' account balances would
support.
For GMxB features, the Company retains certain risks including basis, credit
spread and some volatility risk and risk associated with actual versus
expected actuarial assumptions for mortality, lapse and surrender,
withdrawal and policyholder election rates, among other things. The
derivative contracts are managed to correlate with changes in the value of
the GMxB features that result from financial markets movements. A portion of
exposure to realized equity volatility is hedged using equity options and
variance swaps and a portion of exposure to credit risk is hedged using
total return swaps on fixed income indices. Additionally, the Company is
party to total return swaps for which the reference U.S. Treasury securities
are contemporaneously purchased from the market and sold to the swap
counterparty. As these transactions result in a transfer of control of the
U.S. Treasury securities to the swap counterparty, the Company derecognizes
these securities with consequent gain or loss from the sale. The Company has
also purchased reinsurance contracts to mitigate the risks associated with
GMDB features and the impact of potential market fluctuations on future
policyholder elections of GMIB features contained in certain annuity
contracts issued by the Company.
F-34
DERIVATIVES UTILIZED TO HEDGE CREDITING RATE EXPOSURE ON SCS, SIO, MSO AND
IUL PRODUCTS/INVESTMENT OPTIONS
The Company hedges crediting rates in the Structured Capital Strategies
("SCS") variable annuity, Structured Investment Option in the EQUI-VEST
variable annuity series ("SIO"), Market Stabilizer Option ("MSO") in the
variable life insurance products and Indexed Universal Life ("IUL")
insurance products. These products permit the contract owner to participate
in the performance of an index, ETF or commodity price movement up to a cap
for a set period of time. They also contain a protection feature, in which
the Company will absorb, up to a certain percentage, the loss of value in an
index, ETF or commodity price, which varies by product segment.
In order to support the returns associated with these features, the Company
enters into derivative contracts whose payouts, in combination with fixed
income investments, emulate those of the index, ETF or commodity price,
subject to caps and buffers without any basis risk due to market exposures,
thereby substantially reducing any exposure to market-related earnings
volatility.
DERIVATIVES USED FOR GENERAL ACCOUNT INVESTMENT PORTFOLIO
The Company maintains a strategy in its General Account investment portfolio
to replicate the credit exposure of fixed maturity securities otherwise
permissible for investment under its investment guidelines through the sale
of credit default swaps ("CDSs"). Under the terms of these swaps, the
Company receives quarterly fixed premiums that, together with any initial
amount paid or received at trade inception, replicate the credit spread
otherwise currently obtainable by purchasing the referenced entity's bonds
of similar maturity. These credit derivatives generally have remaining terms
of five years or less and are recorded at fair value with changes in fair
value, including the yield component that emerges from initial amounts paid
or received, reported in Net investment income (loss). The Company manages
its credit exposure taking into consideration both cash and derivatives
based positions and selects the reference entities in its replicated credit
exposures in a manner consistent with its selection of fixed maturities. In
addition, the Company generally transacts the sale of CDSs in single name
reference entities of investment grade credit quality and with
counterparties subject to collateral posting requirements. If there is an
event of default by the reference entity or other such credit event as
defined under the terms of the swap contract, the Company is obligated to
perform under the credit derivative and, at the counterparty's option,
either pay the referenced amount of the contract less an auction-determined
recovery amount or pay the referenced amount of the contract and receive in
return the defaulted or similar security of the reference entity for
recovery by sale at the contract settlement auction. To date, there have
been no events of default or circumstances indicative of a deterioration in
the credit quality of the named referenced entities to require or suggest
that the Company will have to perform under these CDSs. The maximum
potential amount of future payments the Company could be required to make
under these credit derivatives is limited to the par value of the referenced
securities which is the dollar or euro-equivalent of the derivative notional
amount. The Standard North American CDS Contract ("SNAC") or Standard
European Corporate Contract ("STEC") under which the Company executes these
CDS sales transactions does not contain recourse provisions for recovery of
amounts paid under the credit derivative.
The Company purchased 30-year TIPS and other sovereign bonds, both inflation
linked and non-inflation linked, as General Account investments and enters
into asset or cross-currency basis swaps, to result in payment of the given
bond's coupons and principal at maturity in the bond's specified currency to
the swap counterparty in return for fixed dollar amounts. These swaps, when
considered in combination with the bonds, together result in a net position
that is intended to replicate a dollar-denominated fixed-coupon cash bond
with a yield higher than a term-equivalent U.S. Treasury bond.
The Company implemented a strategy to hedge a portion of the credit exposure
in its General Account investment portfolio by buying protection through a
swap. These are swaps on the "super senior tranche" of the investment grade
CDX index. Under the terms of these swaps, the Company pays quarterly fixed
premiums that, together with any initial amount paid or received at trade
inception, serve as premiums paid to hedge the risk arising from multiple
defaults of bonds referenced in the CDX index. These credit derivatives have
terms of five years or less and are recorded at fair value with changes in
fair value, including the yield component that emerges from initial amounts
paid or received, reported in Net derivative gains (losses).
In 2016, the Company implemented a program to mitigate its duration gap
using total return swaps for which the reference U.S. Treasury securities
are sold to the swap counterparty under arrangements economically similar to
repurchase agreements. As these transactions result in a transfer of control
of the U.S. Treasury securities to the swap counterparty, the Company
derecognizes these securities with consequent gain or loss from the sale.
Under this program, the Company derecognized approximately $3,905 million of
U.S. Treasury securities for which the Company received proceeds of
approximately $3,905 million at inception of the total return swap contract.
Under the terms of these swaps, the Company retains ongoing exposure to the
total returns of the underlying U.S. Treasury securities in exchange for a
financing cost. At December 31, 2018, the aggregate fair value of U.S.
Treasury securities derecognized under this program was approximately
$3,690 million. Reported in Other invested assets in the Company's balance
sheet at December 31, 2018 is approximately $24 million, representing the
fair value of the total return swap contracts.
F-35
DERIVATIVES USED TO HEDGE CURRENCY FLUCTUATIONS ON AFFILIATED LOANS
The Company uses foreign exchange derivatives to reduce exposure to currency
fluctuations that may arise from non-U.S.-dollar denominated financial
instruments. The Company had a currency swap contract with AXA to hedge
foreign exchange exposure from affiliated loans, which matured in March 2018.
The tables below present quantitative disclosures about the Company's
derivative instruments, including those embedded in other contracts required
to be accounted for as derivative instruments:
DERIVATIVE INSTRUMENTS BY CATEGORY
AT DECEMBER 31, 2018
FAIR VALUE
------------------------
GAINS (LOSSES)
NOTIONAL ASSET LIABILITY REPORTED IN
AMOUNT DERIVATIVES DERIVATIVES EARNINGS (LOSS)
--------- ------------ ----------- ---------------
(IN MILLIONS)
FREESTANDING DERIVATIVES/(1)(4)/:
Equity contracts:
Futures.................................. $ 10,411 $ -- $ -- $ 550
Swaps.................................... 7,697 140 168 675
Options.................................. 21,698 2,119 1,163 (899)
Interest rate contracts:
Swaps.................................... 27,003 632 194 (456)
Futures.................................. 11,448 -- -- 118
Credit contracts:
Credit default swaps..................... 1,282 17 -- (3)
Other freestanding contracts:
Foreign currency contracts............... 2,097 27 14 6
Margin................................... -- 7 5 --
Collateral............................... -- 3 1,564 --
EMBEDDED DERIVATIVES:
GMIB reinsurance contracts/(4)/.......... -- 1,991 -- (1,068)
GMxB derivative features
liability/(2)(4)/....................... -- -- 5,431 (786)
SCS, SIO, MSO and IUL indexed
features/(3)(4)/........................ -- -- 687 853
--------- ------------ ----------- ---------------
Balances, December 31, 2018............. $ 81,636 $ 4,936 $ 9,226 $ (1,010)
========= ============ =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and IUL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Derivative Instruments by Category
At December 31, 2017
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
-------- ----------- ----------- ---------------
(in millions)
Freestanding Derivatives/(1)(4)/:
Equity contracts:
Futures.................................... $ 2,950 $ -- $ -- $ (655)
Swaps...................................... 4,587 3 125 (842)
Options.................................... 20,630 3,334 1,426 1,203
|
F-36
Fair Value
-----------------------
Gains (Losses)
Notional Asset Liability Reported In
Amount Derivatives Derivatives Earnings (Loss)
--------- ----------- ----------- ---------------
(in millions)
Interest rate contracts:
Swaps........................................... $ 18,988 $ 319 $ 190 $ 655
Futures......................................... 11,032 -- -- 125
Credit contracts:
Credit default swaps............................ 2,057 34 2 21
Other freestanding contracts:
Foreign currency contracts...................... 1,297 11 2 (38)
Margin.......................................... -- 18 -- --
Collateral...................................... -- 3 1,855 --
Embedded Derivatives:
GMIB reinsurance contracts/(4)/................. -- 10,488 -- 69
GMxB derivative features liability/(2)(4)/...... -- -- 4,256 1,592
SCS, SIO, MSO and IUL indexed features/(3)(4)/.. -- -- 1,698 (1,236)
--------- ----------- ----------- ---------------
Balances, December 31, 2017.................... $ 61,541 $ 14,210 $ 9,554 $ 894
========= =========== =========== ===============
|
/(1)/Reported in Other invested assets in the consolidated balance sheets.
/(2)/Reported in Future policy benefits and other policyholders' liabilities
in the consolidated balance sheets.
/(3)/SCS, SIO, MSO and UIL indexed features are reported in Policyholders'
account balances in the consolidated balance sheets.
/(4)/Reported in Net derivative gains (losses) in the consolidated statements
of income (loss).
Equity-Based and Treasury Futures Contracts Margin
All outstanding equity-based and treasury futures contracts at December 31,
2018 are exchange-traded and net settled daily in cash. At December 31,
2018, the Company had open exchange-traded futures positions on: (i) the S&P
500, Russell 2000 and Emerging Market indices, having initial margin
requirements of $245 million, (ii) the 2-year, 5-year and 10-year U.S.
Treasury Notes on U.S. Treasury bonds and ultra-long bonds, having initial
margin requirements of $70 million and (iii) the Euro Stoxx, FTSE 100,
Topix, ASX 200 and European, Australasia, and Far East ("EAFE") indices as
well as corresponding currency futures on the Euro/U.S. dollar, Pound/U.S.
dollar, Australian dollar/U.S. dollar, and Yen/U.S. dollar, having initial
margin requirements of $25 million.
Collateral Arrangements
The Company generally has executed a Credit Support Annex ("CSA") under the
International Swaps and Derivatives Association Master Agreement ("ISDA
Master Agreement") it maintains with each of its over-the-counter ("OTC")
derivative counterparties that requires both posting and accepting
collateral either in the form of cash or high-quality securities, such as
U.S. Treasury securities, U.S. government and government agency securities
and investment grade corporate bonds. The Company nets the fair value of all
derivative financial instruments with counterparties for which an ISDA
Master Agreement and related CSA have been executed. At December 31, 2018
and 2017, respectively, the Company held $1,564 million and $1,855 million
in cash and securities collateral delivered by trade counterparties,
representing the fair value of the related derivative agreements. The
unrestricted cash collateral is reported in Other invested assets. The
Company posted collateral of $3 million and $3 million at December 31, 2018
and 2017, respectively, in the normal operation of its collateral
arrangements.
Securities Repurchase and Reverse Repurchase Transactions
Securities repurchase and reverse repurchase transactions are conducted by
the Company under a standardized securities industry master agreement,
amended to suit the requirements of each respective counterparty. The
Company's securities repurchase and reverse repurchase agreements are
accounted for as secured borrowing or lending arrangements, respectively and
are reported in the consolidated balance sheets on a gross basis. At
December 31, 2018 and 2017, the balance outstanding under securities
repurchase transactions was $573 million and $1,887 million, respectively.
The Company utilized these repurchase and reverse repurchase agreements for
asset liability and cash management purposes. For other instruments used for
asset liability management purposes, see "Obligations under Funding
Agreements" in Note 17 -- Commitments and Contingent Liabilities.
F-37
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2018:
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2018
GROSS
GROSS AMOUNT NET AMOUNT
AMOUNT OFFSET IN THE PRESENTED IN THE
RECOGNIZED BALANCE SHEETS BALANCE SHEETS
----------- -------------- ----------------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 2,946 $ 2,912 $ 34
Other financial instruments................ 1,520 -- 1,520
----------- ------------- ----------------
Other invested assets..................... $ 4,466 $ 2,912 $ 1,554
=========== ============= ================
LIABILITIES
Total Derivatives.......................... $ 3,109 $ 2,912 $ 197
Other financial liabilities................ 1,263 -- 1,263
----------- ------------- ----------------
Other liabilities......................... $ 4,372 $ 2,912 $ 1,460
=========== ============= ================
Securities sold under agreement to
repurchase/(1)/........................... $ 571 $ -- $ 571
=========== ============= ================
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2018.
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2018
NET AMOUNT COLLATERAL (RECEIVED)/HELD
PRESENTED IN ------------------------
THE BALANCE FINANCIAL NET
SHEETS INSTRUMENTS CASH/(3)/ AMOUNT
------------ ----------- ----------- ---------
(IN MILLIONS)
ASSETS
Total Derivatives.......................... $ 1,397 $ -- $ (1,363) $ 34
Other financial instruments................ 1,520 -- -- 1,520
------------ ----------- ----------- ---------
Other invested assets..................... $ 2,917 $ -- $ (1,363) $ 1,554
============ =========== =========== =========
LIABILITIES
Total Derivatives.......................... $ 197 $ -- $ -- $ 197
Other financial liabilities................ 1,263 -- -- 1,263
------------ ----------- ----------- ---------
Other liabilities......................... $ 1,460 $ -- $ -- $ 1,460
============ =========== =========== =========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 571 $ (588) $ -- $ (17)
============ =========== =========== =========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
/(2)/US Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is in Cash and cash equivalents on consolidated balance sheets.
F-38
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2018:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
DECEMBER 31, 2018
REMAINING CONTRACTUAL MATURITY OF THE AGREEMENTS
----------------------------------------------------------
OVERNIGHT AND UP TO 30 30-90 GREATER THAN
CONTINUOUS DAYS DAYS 90 DAYS TOTAL
-------------- --------- ------- ------------- -----------
(IN MILLIONS)
Securities sold under agreement
to repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 571 $ -- $ -- $ 571
-------------- --------- ------- ------------- -----------
Total........................................ $ -- $ 571 $ -- $ -- $ 571
============== ========= ======= ============= ===========
|
/(1)/Excludes expense of $2 million in securities sold under agreement to
repurchase.
The following table presents information about the Company's offsetting of
financial assets and liabilities and derivative instruments at December 31,
2017.
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS
AT DECEMBER 31, 2017
Gross
Gross Amount Net Amount
Amount Offset in the Presented in the
Recognized Balance Sheets Balance Sheets
------------ --------------- ----------------
(in millions)
Assets
Total Derivatives.......................... $ 3,740 $ 3,614 $ 126
Other financial instruments................ 1,704 -- 1,704
------------ --------------- ----------------
Other invested assets..................... $ 5,444 $ 3,614 $ 1,830
============ =============== ================
Liabilities
Total Derivatives.......................... $ 3,614 $ 3,614 $ --
Other financial liabilities................ 1,242 -- 1,242
------------ --------------- ----------------
Other liabilities......................... $ 4,856 $ 3,614 $ 1,242
============ =============== ================
Securities sold under agreement to
repurchase/(1)/........................... $ 1,882 $ -- $ 1,882
============ =============== ================
|
/(1)/Excludes expense of $5 million included in Securities sold under
agreements to repurchase on the consolidated balance sheets.
The following table presents information about the Company's gross
collateral amounts that are not offset in the consolidated balance sheets at
December 31, 2017:
COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
AT DECEMBER 31, 2017
Net Amount Collateral (Received)/Held
Presented in ------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------ ----------- -----------
(in millions)
Assets
Total derivatives.......................... $ 1,954 $ -- $ (1,828) $ 126
Other financial instruments................ 1,704 -- -- 1,704
------------- ------------ ----------- -----------
Other invested assets..................... $ 3,658 $ -- $ (1,828) $ 1,830
============= ============ =========== ===========
|
F-39
Net Amount Collateral (Received)/Held
Presented in ---------------------------
the Balance Financial Net
Sheets Instruments Cash/(3)/ Amount
------------- ------------- ------------ --------
(in millions)
Liabilities
Other financial liabilities................ $ 1,242 $ -- $ -- $ 1,242
------------- ------------- ------------ --------
Other liabilities......................... $ 1,242 $ -- $ -- $ 1,242
============= ============= ============ ========
Securities sold under agreement to
repurchase/(1)(2)(3)/..................... $ 1,882 $ (1,988) $ (21) $ (127)
============= ============= ============ ========
|
/(1)/Excludes expense of $5 million in securities sold under agreement to
repurchase.
/(2)/U.S. Treasury and agency securities are in fixed maturities
available-for-sale on the consolidated balance sheets.
/(3)/Cash is included in Cash and cash equivalents on consolidated balance
sheets.
The following table presents information about repurchase agreements
accounted for as secured borrowings in the consolidated balance sheets at
December 31, 2017:
REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS
AT DECEMBER 31, 2017
Remaining Contractual Maturity of the Agreements
----------------------------------------------------------
Overnight and Up to 30 30-90 Greater Than
Continuous days days 90 days Total
--------------- -------- --------- -------------- --------
(in millions)
Securities sold under agreement to
repurchase/(1)/
U.S. Treasury and agency securities........ $ -- $ 1,882 $ -- $ -- $ 1,882
--------------- -------- --------- -------------- --------
Total........................................ $ -- $ 1,882 $ -- $ -- $ 1,882
=============== ======== ========= ============== ========
|
/(1)/Excludes expense of $5 million in securities sold under agreements to
repurchase on the consolidated balance sheets.
Net Investment Income (Loss)
The following table breaks out Net investment income (loss) by asset
category:
YEARS ENDED DECEMBER 31
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Fixed maturities....................................... $ 1,540 $ 1,365 $ 1,418
Mortgage loans on real estate.......................... 494 453 461
Real estate held for the production of income.......... (6) 2 --
Repurchase agreement................................... -- -- 1
Other equity investments............................... 123 169 55
Policy loans........................................... 201 205 210
Trading securities..................................... 128 258 64
Other investment income................................ 69 54 16
-------- -------- --------
Gross investment income (loss)....................... 2,549 2,506 2,225
Investment expenses/(1)/............................... (71) (65) (57)
-------- -------- --------
Net Investment Income (Loss)......................... $ 2,478 $ 2,441 $ 2,168
======== ======== ========
|
/(1)/Investment expenses includes expenses related to the management of the
two buildings sold in 2016.
F-40
Net unrealized and realized gains (losses) on trading account equity
securities are included in Net investment income (loss) in the consolidated
statements of income (loss). The table below shows a breakdown of Net
investment income from trading account securities during the years ended
December 31, 2018, 2017 and 2016:
NET INVESTMENT INCOME (LOSS) FROM TRADING SECURITIES
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------- ------ ------
(IN MILLIONS)
Net investment gains (losses) recognized during the
period on securities held at the end of the period.. $ (174) $ 63 $ (45)
Net investment gains (losses) recognized on
securities sold during the period................... (24) (19) (11)
------- ------ ------
Unrealized and realized gains (losses) on trading
securities.......................................... (198) 44 (56)
Interest and dividend income from trading securities.. 326 214 120
------- ------ ------
Net investment income (loss) from trading securities.. $ 128 $ 258 $ 64
======= ====== ======
|
Investment Gains (Losses), Net
Investment gains (losses), net including changes in the valuation allowances
and OTTI are as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
------- --------- --------
(IN MILLIONS)
Fixed maturities............................. $ 6 $ (130) $ (3)
Mortgage loans on real estate................ -- 2 (2)
Other equity investments..................... -- 3 --
Other........................................ (2) -- 23
------- --------- --------
Investment gains (losses), net............... $ 4 $ (125) $ 18
======= ========= ========
|
For the years ended December 31, 2018, 2017 and 2016, respectively,
investment results passed through to certain participating group annuity
contracts as Interest credited to policyholders' account balances totaled
$3 million, $3 million and $4 million.
4) INTANGIBLE ASSETS
Capitalized Software
Capitalized software, net of accumulated amortization, amounted to
$115 million and $96 million at December 31, 2018 and 2017, respectively,
and is recorded in Other assets. Amortization of capitalized software in
2018, 2017 and 2016 was $35 million, $37 million and $42 million,
respectively, recorded in other Operating costs and expenses in the
consolidated statements of income (loss). Amortization expense for
capitalized software is expected to be approximately $43 million in 2019,
$47 million in 2020, $47 million in 2021, $47 million in 2022 and
$47 million in 2023.
5) CLOSED BLOCK
As a result of demutualization, the Company's Closed Block was established
in 1992 for the benefit of certain individual participating policies that
were in force on that date. Assets, liabilities and earnings of the Closed
Block are specifically identified to support its participating policyholders.
Assets allocated to the Closed Block inure solely to the benefit of the
Closed Block policyholders and will not revert to the benefit of the
Company. No reallocation, transfer, borrowing or lending of assets can be
made between the Closed Block and other portions of the Company's General
Account, any of its Separate Accounts or any affiliate of the Company
without the approval of the New York State Department of Financial Services
(the "NYDFS"). Closed Block assets and liabilities are carried on the same
basis as similar assets and liabilities held in the General Account.
F-41
The excess of Closed Block liabilities over Closed Block assets (adjusted to
exclude the impact of related amounts in AOCI) represents the expected
maximum future post-tax earnings from the Closed Block that would be
recognized in income from continuing operations over the period the policies
and contracts in the Closed Block remain in force. As of January 1, 2001,
the Company has developed an actuarial calculation of the expected timing of
the Closed Block's earnings.
If the actual cumulative earnings from the Closed Block are greater than the
expected cumulative earnings, only the expected earnings will be recognized
in net income. Actual cumulative earnings in excess of expected cumulative
earnings at any point in time are recorded as a policyholder dividend
obligation because they will ultimately be paid to Closed Block
policyholders as an additional policyholder dividend unless offset by future
performance that is less favorable than originally expected. If a
policyholder dividend obligation has been previously established and the
actual Closed Block earnings in a subsequent period are less than the
expected earnings for that period, the policyholder dividend obligation
would be reduced (but not below zero). If, over the period the policies and
contracts in the Closed Block remain in force, the actual cumulative
earnings of the Closed Block are less than the expected cumulative earnings,
only actual earnings would be recognized in income from continuing
operations. If the Closed Block has insufficient funds to make guaranteed
policy benefit payments, such payments will be made from assets outside the
Closed Block.
Many expenses related to Closed Block operations, including amortization of
DAC, are charged to operations outside of the Closed Block; accordingly, net
revenues of the Closed Block do not represent the actual profitability of
the Closed Block operations. Operating costs and expenses outside of the
Closed Block are, therefore, disproportionate to the business outside of the
Closed Block.
Summarized financial information for the Company's Closed Block is as
follows:
AS OF DECEMBER 31,
---------------------
2018 2017
---------- ----------
(IN MILLIONS)
CLOSED BLOCK LIABILITIES:
Future policy benefits, policyholders' account
balances and other................................... $ 6,709 $ 6,958
Policyholder' dividend obligation...................... -- 19
Other liabilities...................................... 47 271
---------- ----------
Total Closed Block liabilities......................... 6,756 7,248
---------- ----------
ASSETS DESIGNATED TO THE CLOSED BLOCK:
Fixed maturities, available for sale, at fair value
(amortized cost of $ 3,680 and $3,923)............... 3,672 4,070
Mortgage loans on real estate, net of valuation
allowance of $-- and $--............................. 1,824 1,720
Policy loans........................................... 736 781
Cash and other invested assets......................... 76 351
Other assets........................................... 179 182
---------- ----------
Total assets designated to the Closed Block............ 6,487 7,104
---------- ----------
Excess of Closed Block liabilities over assets
designated to the Closed Block....................... 269 144
Amounts included in Accumulated other comprehensive
income (loss):
Net unrealized investment gains (losses), net of
policyholders' dividend obligation of $-- and $19... 8 138
---------- ----------
Maximum future income to be recognized from closed
block assets and liabilities........................ $ 277 $ 282
========== ==========
|
The Company's Closed Block revenues and expenses follow:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
REVENUES:
Premiums and other income.................... $ 194 $ 224 $ 212
Net investment income (loss)................. 291 314 349
Investment gains (losses), net............... (3) (20) (1)
-------- -------- --------
Total revenues............................. 482 518 560
-------- -------- --------
|
F-42
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits and dividends....... $ 471 $ 537 $ 522
Other operating costs and expenses.......... 3 2 4
---------- ---------- ----------
Total benefits and other deductions....... 474 539 526
---------- ---------- ----------
Net income, before income taxes............. 8 (21) 34
Income tax (expense) benefit.............. (3) (36) (12)
---------- ---------- ----------
Net income (losses)......................... $ 5 $ (57) $ 22
========== ========== ==========
|
A reconciliation of the Company's policyholders' dividend obligation follows:
DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
Balance, beginning of year.................................. $ 19 $ 52
Unrealized investment gains (losses)........................ (19) (33)
-------- --------
Balance, end of year........................................ $ -- $ 19
======== ========
|
6) DAC AND POLICYHOLDER BONUS INTEREST CREDITS
Changes in the deferred policy acquisition cost asset for the years ended
December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
-------------------------
2018 2017 2016
------- ------- -------
(IN MILLIONS)
Balance, beginning of year................... $ 4,492 $ 5,025 $ 5,079
Capitalization of commissions, sales and
issue expenses............................. 597 578 594
Amortization:
Impact of assumptions updates and
model changes............................. 165 (247) (193)
All other.................................... (596) (653) (449)
------- ------- -------
Total amortization......................... (431) (900) (642)
------- ------- -------
Change in unrealized investment gains
and losses................................. 353 (211) (6)
------- ------- -------
Balance, end of year......................... $ 5,011 $ 4,492 $ 5,025
======= ======= =======
|
Changes in the deferred asset for policyholder bonus interest credits for
the years ended December 31, 2018, 2017 and 2016 were as follows:
YEARS ENDED DECEMBER 31,
----------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
Balance, beginning of year................... $ 473 $ 504 $ 534
Policyholder bonus interest credits deferred. 4 6 13
Amortization charged to income............... (51) (37) (43)
-------- -------- --------
Balance, end of year......................... $ 426 $ 473 $ 504
======== ======== ========
|
F-43
7) FAIR VALUE DISCLOSURES
The accounting guidance establishes a fair value hierarchy that requires an
entity to maximize the use of observable inputs and minimize the use of
unobservable inputs when measuring fair value, and identifies three levels
of inputs that may be used to measure fair value:
Level 1 Unadjusted quoted prices for identical instruments in
active markets. Level 1 fair values generally are supported
by market transactions that occur with sufficient frequency
and volume to provide pricing information on an ongoing
basis.
Level 2 Observable inputs other than Level 1 prices, such as quoted
prices for similar instruments, quoted prices in markets
that are not active, and inputs to model-derived valuations
that are directly observable or can be corroborated by
observable market data.
Level 3 Unobservable inputs supported by little or no market
activity and often requiring significant management
judgment or estimation, such as an entity's own assumptions
about the cash flows or other significant components of
value that market participants would use in pricing the
asset or liability.
|
The Company uses unadjusted quoted market prices to measure fair value for
those instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are measured using
present value or other valuation techniques. The fair value determinations
are made at a specific point in time, based on available market information
and judgments about the financial instrument, including estimates of the
timing and amount of expected future cash flows and the credit standing of
counterparties. Such adjustments do not reflect any premium or discount that
could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument, nor do they consider the tax
impact of the realization of unrealized gains or losses. In many cases, the
fair value cannot be substantiated by direct comparison to independent
markets, nor can the disclosed value be realized in immediate settlement of
the instrument.
Management is responsible for the determination of the value of investments
carried at fair value and the supporting methodologies and assumptions.
Under the terms of various service agreements, the Company often utilizes
independent valuation service providers to gather, analyze, and interpret
market information and derive fair values based upon relevant methodologies
and assumptions for individual securities. These independent valuation
service providers typically obtain data about market transactions and other
key valuation model inputs from multiple sources and, through the use of
widely accepted valuation models, provide a single fair value measurement
for individual securities for which a fair value has been requested. As
further described below with respect to specific asset classes, these inputs
include, but are not limited to, market prices for recent trades and
transactions in comparable securities, benchmark yields, interest rate yield
curves, credit spreads, quoted prices for similar securities, and other
market-observable information, as applicable. Specific attributes of the
security being valued also are considered, including its term, interest
rate, credit rating, industry sector, and when applicable, collateral
quality and other security- or issuer-specific information. When
insufficient market observable information is available upon which to
measure fair value, the Company either will request brokers knowledgeable
about these securities to provide a non-binding quote or will employ
internal valuation models. Fair values received from independent valuation
service providers and brokers and those internally modeled or otherwise
estimated are assessed for reasonableness.
Assets and liabilities measured at fair value on a recurring basis are
summarized below. At December 31, 2018 and December 31, 2017, no assets were
required to be measured at fair value on a non-recurring basis. Fair value
measurements are required on a non-recurring basis for certain assets,
including goodwill and mortgage loans on real estate, only when an OTTI or
other event occurs. When such fair value measurements are recorded, they
must be classified and disclosed within the fair value hierarchy. The
Company recognizes transfers between valuation levels at the beginning of
the reporting period.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2018
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
------- -------- ------- --------
(IN MILLIONS)
ASSETS
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 25,202 $ 1,174 $ 26,376
U.S. Treasury, government and agency........ -- 13,335 -- 13,335
States and political subdivisions........... -- 416 38 454
Foreign governments......................... -- 519 -- 519
Residential mortgage-backed/(2)/............ -- 202 -- 202
Asset-backed/(3)/........................... -- 71 519 590
Redeemable preferred stock.................. 163 276 -- 439
------- -------- ------- --------
Total fixed maturities,
available-for-sale...................... 163 40,021 1,731 41,915
|
F-44
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------- --------- -------- ---------
(IN MILLIONS)
Other equity investments................... $ 12 $ -- $ -- $ 12
Trading securities......................... 218 14,919 29 15,166
Other invested assets:
Short-term investments.................... -- 412 -- 412
Assets of consolidated VIEs/VOEs.......... -- -- 19 19
Swaps..................................... -- 423 -- 423
Credit default swaps...................... -- 17 -- 17
Options................................... -- 956 -- 956
--------- --------- -------- ---------
Total other invested assets............. -- 1,808 19 1,827
Cash equivalents............................. 2,160 -- -- 2,160
GMIB reinsurance contracts asset............. -- -- 1,991 1,991
Separate Accounts assets..................... 105,159 2,733 374 108,266
--------- --------- -------- ---------
Total Assets.............................. $ 107,712 $ 59,481 $ 4,144 $ 171,337
========= ========= ======== =========
LIABILITIES
GMxB derivative features' liability.......... $ -- $ -- $ 5,431 $ 5,431
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 687 -- 687
--------- --------- -------- ---------
Total Liabilities......................... $ -- $ 687 $ 5,431 $ 6,118
========= ========= ======== =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2017
Level 1 Level 2 Level 3 Total
---------- --------- --------- ----------
(in millions)
Assets
Investments
Fixed maturities, available-for-sale:
Corporate/(1)/.............................. $ -- $ 20,343 $ 1,139 $ 21,482
U.S. Treasury, government and agency........ -- 13,135 -- 13,135
States and political subdivisions........... -- 441 40 481
Foreign governments......................... -- 409 -- 409
Residential mortgage-backed/(2)/............ -- 251 -- 251
Asset-backed/(3)/........................... -- 88 8 96
Redeemable preferred stock.................. 180 324 -- 504
---------- --------- --------- ----------
Total fixed maturities,
available-for-sale...................... 180 34,991 1,187 36,358
Other equity investments..................... 13 -- -- 13
Trading securities........................... 180 12,097 -- 12,277
Other invested assets........................
Short-term investments...................... -- 763 -- 763
Assets of consolidated VIEs/VOEs............ -- -- 25 25
Swaps....................................... -- 15 -- 15
Credit default swaps........................ -- 33 -- 33
Options..................................... -- 1,907 -- 1,907
---------- --------- --------- ----------
Total other invested assets............... -- 2,718 25 2,743
Cash equivalents............................... 1,908 -- -- 1,908
Segregated securities.......................... -- 9 -- 9
GMIB reinsurance contracts asset............... -- -- 10,488 10,488
Separate Accounts assets....................... 118,983 2,983 349 122,315
---------- --------- --------- ----------
Total Assets................................ $ 121,264 $ 52,798 $ 12,049 $ 186,111
========== ========= ========= ==========
|
F-45
Level 1 Level 2 Level 3 Total
-------- ------- --------- ---------
(in millions)
Liabilities
GMxB derivative features' liability.......... $ -- $ -- $ 4,256 $ 4,256
SCS, SIO, MSO and IUL indexed
features' liability........................ -- 1,698 -- 1,698
-------- ------- --------- ---------
Total Liabilities......................... $ -- $ 1,698 $ 4,256 $ 5,954
======== ======= ========= =========
|
/(1)/Corporate fixed maturities includes both public and private issues.
/(2)/Includes publicly traded agency pass-through securities and
collateralized obligations.
/(3)/Includes credit-tranched securities collateralized by sub-prime
mortgages and other asset types and credit tenant loans.
The fair values of the Company's public fixed maturities are generally based
on prices obtained from independent valuation service providers and for
which the Company maintains a vendor hierarchy by asset type based on
historical pricing experience and vendor expertise. Although each security
generally is priced by multiple independent valuation service providers, the
Company ultimately uses the price received from the independent valuation
service provider highest in the vendor hierarchy based on the respective
asset type, with limited exception. To validate reasonableness, prices also
are internally reviewed by those with relevant expertise through comparison
with directly observed recent market trades. Consistent with the fair value
hierarchy, public fixed maturities validated in this manner generally are
reflected within Level 2, as they are primarily based on observable pricing
for similar assets and/or other market observable inputs. If the pricing
information received from independent valuation service providers is not
reflective of market activity or other inputs observable in the market, the
Company may challenge the price through a formal process in accordance with
the terms of the respective independent valuation service provider
agreement. If as a result it is determined that the independent valuation
service provider is able to reprice the security in a manner agreed as more
consistent with current market observations, the security remains within
Level 2. Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
The fair values of the Company's private fixed maturities are determined
from prices obtained from independent valuation service providers. Prices
not obtained from an independent valuation service provider are determined
by using a discounted cash flow model or a market comparable company
valuation technique. In certain cases, these models use observable inputs
with a discount rate based upon the average of spread surveys collected from
private market intermediaries who are active in both primary and secondary
transactions, taking into account, among other factors, the credit quality
and industry sector of the issuer and the reduced liquidity associated with
private placements. Generally, these securities have been reflected within
Level 2. For certain private fixed maturities, the discounted cash flow
model or a market comparable company valuation technique may also
incorporate unobservable inputs, which reflect the Company's own assumptions
about the inputs market participants would use in pricing the asset. To the
extent management determines that such unobservable inputs are significant
to the fair value measurement of a security, a Level 3 classification
generally is made.
The net fair value of the Company's freestanding derivative positions as
disclosed in Note 3 are generally based on prices obtained either from
independent valuation service providers or derived by applying market inputs
from recognized vendors into industry standard pricing models. The majority
of these derivative contracts are traded in the OTC derivative market and
are classified in Level 2. The fair values of derivative assets and
liabilities traded in the OTC market are determined using quantitative
models that require use of the contractual terms of the derivative
instruments and multiple market inputs, including interest rates, prices,
and indices to generate continuous yield or pricing curves, including
overnight index swap ("OIS") curves, and volatility factors, which then are
applied to value the positions. The predominance of market inputs is
actively quoted and can be validated through external sources or reliably
interpolated if less observable. If the pricing information received from
independent valuation service providers is not reflective of market activity
or other inputs observable in the market, the Company may challenge the
price through a formal process in accordance with the terms of the
respective independent valuation service provider agreement. If as a result
it is determined that the independent valuation service provider is able to
reprice the derivative instrument in a manner agreed as more consistent with
current market observations, the position remains within Level 2.
Alternatively, a Level 3 classification may result if the pricing
information then is sourced from another vendor, non-binding broker quotes,
or internally-developed valuations for which the Company's own assumptions
about market-participant inputs would be used in pricing the security.
Investments classified as Level 1 primarily include redeemable preferred
stock, trading securities, cash equivalents and Separate Account assets.
Fair value measurements classified as Level 1 include exchange-traded prices
of fixed maturities, equity securities and derivative contracts, and net
asset values for transacting subscriptions and redemptions of mutual fund
shares held by Separate Accounts. Cash equivalents classified as Level 1
include money market accounts, overnight commercial paper and highly liquid
debt instruments purchased with an original maturity of three months or less
and are carried at cost as a proxy for fair value measurement due to their
short-term nature.
F-46
Investments classified as Level 2 are measured at fair value on a recurring
basis and primarily include U.S. government and agency securities and
certain corporate debt securities, such as public and private fixed
maturities. As market quotes generally are not readily available or
accessible for these securities, their fair value measures are determined
utilizing relevant information generated by market transactions involving
comparable securities and often are based on model pricing techniques that
effectively discount prospective cash flows to present value using
appropriate sector-adjusted credit spreads commensurate with the security's
duration, also taking into consideration issuer-specific credit quality and
liquidity. Segregated securities classified as Level 2 are U.S. Treasury
bills segregated in a special reserve bank custody account for the exclusive
benefit of brokerage customers, as required by Rule 15c3-3 of the Exchange
Act and for which fair values are based on quoted yields in secondary
markets.
Observable inputs generally used to measure the fair value of securities
classified as Level 2 include benchmark yields, reported secondary trades,
issuer spreads, benchmark securities and other reference data. Additional
observable inputs are used when available, and as may be appropriate, for
certain security types, such as prepayment, default, and collateral
information for the purpose of measuring the fair value of mortgage- and
asset-backed securities. The Company's AAA-rated mortgage- and asset-backed
securities are classified as Level 2 for which the observability of market
inputs to their pricing models is supported by sufficient, albeit more
recently contracted, market activity in these sectors.
Certain Company products such as the SCS and EQUI-VEST variable annuity
products, and in the MSO fund available in some life contracts offer
investment options which permit the contract owner to participate in the
performance of an index, ETF or commodity price. These investment options,
which depending on the product and on the index selected can currently
have 1, 3, 5, or 6-year terms, provide for participation in the performance
of specified indices, ETF or commodity price movement up to a
segment-specific declared maximum rate. Under certain conditions that vary
by product, e.g. holding these segments for the full term, these segments
also shield policyholders from some or all negative investment performance
associated with these indices, ETF or commodity prices. These investment
options have defined formulaic liability amounts, and the current values of
the option component of these segment reserves are accounted for as Level 2
embedded derivatives. The fair values of these embedded derivatives are
based on data obtained from independent valuation service providers.
The Company's investments classified as Level 3 primarily include corporate
debt securities, such as private fixed maturities. Determinations to
classify fair value measures within Level 3 of the valuation hierarchy
generally are based upon the significance of the unobservable factors to the
overall fair value measurement. Included in the Level 3 classification are
fixed maturities with indicative pricing obtained from brokers that
otherwise could not be corroborated to market observable data. The Company
applies various due diligence procedures, as considered appropriate, to
validate these non-binding broker quotes for reasonableness, based on its
understanding of the markets, including use of internally-developed
assumptions about inputs a market participant would use to price the
security. In addition, asset-backed securities are classified as Level 3.
The Company also issues certain benefits on its variable annuity products
that are accounted for as derivatives and are also considered Level 3. The
GMIBNLG feature allows the policyholder to receive guaranteed minimum
lifetime annuity payments based on predetermined annuity purchase rates
applied to the contract's benefit base if and when the contract account
value is depleted and the NLG feature is activated. The GMWB feature allows
the policyholder to withdraw at minimum, over the life of the contract, an
amount based on the contract's benefit base. The GWBL feature allows the
policyholder to withdraw, each year for the life of the contract, a
specified annual percentage of an amount based on the contract's benefit
base. The GMAB feature increases the contract account value at the end of a
specified period to a GMAB base. The GIB feature provides a lifetime annuity
based on predetermined annuity purchase rates if and when the contract
account value is depleted. This lifetime annuity is based on predetermined
annuity purchase rates applied to a GIB base.
Level 3 also includes the GMIB reinsurance contract assets which are
accounted for as derivative contracts. The GMIB reinsurance contract asset
and liabilities' fair value reflects the present value of reinsurance
premiums and recoveries and risk margins over a range of market consistent
economic scenarios while GMxB derivative features liability reflects the
present value of expected future payments (benefits) less fees, adjusted for
risk margins and nonperformance risk, attributable to GMxB derivative
features' liability over a range of market-consistent economic scenarios.
The valuations of the GMIB reinsurance contract asset and GMxB derivative
features liability incorporate significant non-observable assumptions
related to policyholder behavior, risk margins and projections of equity
separate account funds. The credit risks of the counterparty and of the
Company are considered in determining the fair values of its GMIB
reinsurance contract asset and GMxB derivative features liability positions,
respectively, after taking into account the effects of collateral
arrangements. Incremental adjustment to the swap curve for non-performance
risk is made to the fair values of the GMIB reinsurance contract asset and
liabilities and GMIBNLG feature to reflect the claims-paying ratings of
counterparties and the Company. Equity and fixed income volatilities were
modeled to reflect current market volatilities. Due to the unique, long
duration of the GMIBNLG feature, adjustments were made to the equity
volatilities to remove the illiquidity bias associated with the longer
tenors and risk margins were applied to the non-capital markets inputs to
the GMIBNLG valuations.
F-47
After giving consideration to collateral arrangements, the Company reduced
the fair value of its GMIB reinsurance contract asset by $184 million and
$69 million at December 31, 2018 and 2017, respectively, to recognize
incremental counterparty non-performance risk.
Lapse rates are adjusted at the contract level based on a comparison of the
actuarially calculated guaranteed values and the current policyholder
account value, which include other factors such as considering surrender
charges. Generally, lapse rates are assumed to be lower in periods when a
surrender charge applies. A dynamic lapse function reduces the base lapse
rate when the guaranteed amount is greater than the account value as in the
money contracts are less likely to lapse. For valuing the embedded
derivative, lapse rates vary throughout the period over which cash flows are
projected.
The Company's consolidated VIEs/VOEs hold investments that are classified as
Level 3 and primarily consist of corporate bonds that are vendor priced with
no ratings available, bank loans, non-agency collateralized mortgage
obligations and asset-backed securities.
In 2018, AFS fixed maturities with fair values of $28 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $83 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.9% of total equity at December 31, 2018.
In 2017, AFS fixed maturities with fair values of $6 million were
transferred out of Level 3 and into Level 2 principally due to the
availability of trading activity and/or market observable inputs to measure
and validate their fair values. In addition, AFS fixed maturities with fair
value of $7 million were transferred from Level 2 into the Level 3
classification. These transfers in the aggregate represent approximately
0.1% of total equity at December 31, 2017.
The table below presents a reconciliation for all Level 3 assets and
liabilities at December 31, 2018, 2017 and 2016 respectively:
LEVEL 3 INSTRUMENTS
FAIR VALUE MEASUREMENTS
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED ASSET-BACKED
----------- -------------- ----------- ---------- ------------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ 1,139 $ 40 $ -- $ -- $ 8
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 7 -- -- -- (2)
Investment gains (losses), net............ (8) -- -- -- --
----------- -------------- ----------- ---------- ------------
Subtotal..................................... (1) -- -- -- (2)
----------- -------------- ----------- ---------- ------------
Other comprehensive income (loss).............. (20) (1) -- -- (7)
Purchases...................................... 322 -- -- -- 550
Sales.......................................... (321) (1) -- -- (30)
Transfers into Level 3/(1)/.................... 83 -- -- -- --
Transfers out of Level 3/(1)/.................. (28) -- -- -- --
----------- -------------- ----------- ---------- ------------
BALANCE, DECEMBER 31, 2018..................... $ 1,174 $ 38 $ -- $ -- $ 519
=========== ============== =========== ========== ============
|
F-48
STATE AND COMMERCIAL
POLITICAL FOREIGN MORTGAGE- ASSET-
CORPORATE SUBDIVISIONS GOVERNMENTS BACKED BACKED
--------- ------------- ------------ ------------ --------
(IN MILLIONS)
Balance, January 1, 2017....................... $ 845 $ 42 $ -- $ 349 $ 24
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Net investment income (loss).............. 5 -- -- (2) --
Investment gains (losses), net............ 2 -- -- (63) 15
--------- ------------- ------------ ------------ --------
Subtotal..................................... 7 -- -- (65) 15
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 4 (1) -- 45 (9)
Purchases...................................... 612 -- -- -- --
Sales.......................................... (331) (1) -- (329) (21)
Transfers into Level 3/(1)/.................... 7 -- -- -- --
Transfers out of Level 3/(1)/.................. (5) -- -- -- (1)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2017..................... $ 1,139 $ 40 $ -- $ -- $ 8
========= ============= ============ ============ ========
Balance, January 1, 2016....................... $ 420 $ 45 $ 1 $ 503 $ 40
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Subtotal..................................... 1 -- -- (67) --
--------- ------------- ------------ ------------ --------
Other comprehensive income (loss).............. 7 (2) -- 14 1
Purchases...................................... 572 -- -- -- --
Sales.......................................... (142) (1) -- (87) (8)
Transfers into Level 3/(1)/.................... 25 -- -- -- --
Transfers out of Level 3/(1)/.................. (38) -- (1) (14) (9)
--------- ------------- ------------ ------------ --------
Balance, December 31, 2016..................... $ 845 $ 42 $ -- $ 349 $ 24
========= ============= ============ ============ ========
|
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ------------ -------- ----------
(IN MILLIONS)
BALANCE, JANUARY 1, 2018....................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 26 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (972) -- (296)
Non-performance risk/(4)/................. -- -- (96) -- (490)
----------- --------------- ------------ -------- ----------
Subtotal..................................... -- -- (1,068) 26 (786)
----------- --------------- ------------ -------- ----------
Purchases/(2)/................................. -- 29 96 5 (403)
Sales/(3)/..................................... -- -- (62) (1) 14
Settlements.................................... -- -- (7,463) (5) --
Activity related to consolidated VIEs/ VOEs.... -- (6) -- -- --
Transfers into Level 3/(1)/.................... -- 5 -- -- --
Transfers out of Level 3/(1)/.................. -- (5) -- -- --
----------- --------------- ------------ -------- ----------
BALANCE, DECEMBER 31, 2018..................... $ -- $ 48 $ 1,991 $ 374 $ (5,431)
=========== =============== ============ ======== ==========
|
F-49
GMXB
REDEEMABLE GMIB SEPARATE DERIVATIVE
PREFERRED OTHER EQUITY REINSURANCE ACCOUNT FEATURES
STOCK INVESTMENTS/(2)/ ASSET ASSETS LIABILITY
----------- --------------- ----------- -------- ----------
Balance, January 1, 2017....................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 29 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (6) -- 1,443
Non-performance risk/(4)/................. -- -- 75 -- 149
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- 69 29 1,592
----------- -------------- ----------- -------- ----------
Other comprehensive............................
income(loss)................................... (1) -- -- -- --
Purchases/(2)/................................. -- -- 221 13 (381)
Sales/(3)/..................................... -- -- (115) (2) 6
Settlements.................................... -- -- -- (4) --
Activity related to consolidated VIEs/ VOEs.... -- (15) -- -- --
Transfers into level 3/(1)/.................... -- -- -- -- --
Transfers out of level 3/(1)/.................. -- -- -- -- --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2017..................... $ -- $ 25 $ 10,488 $ 349 $ (4,256)
=========== ============== =========== ======== ==========
Balance, January 1, 2016....................... $ -- $ 1 $ 10,582 $ 313 $ (5,266)
Total gains (losses), realized and
unrealized, included in:
Income (loss) as:
Investment gains (losses), net............ -- -- -- 19 --
Net derivative gains (losses),
excluding non-performance risk.......... -- -- (242) -- (126)
Non-performance risk/(4)/................. -- -- (20) -- 263
----------- -------------- ----------- -------- ----------
Subtotal..................................... -- -- (262) 19 137
----------- -------------- ----------- -------- ----------
Other comprehensive income (loss).............. -- (1) -- -- --
Purchases/(2)/................................. 1 -- 223 10 (348)
Sales/(3)/..................................... -- -- (230) -- 4
Settlements.................................... -- -- -- (7) --
Activities related to consolidated VIEs/ VOEs.. -- 40 -- -- --
Transfers into level 3/(1)/.................... -- -- -- 1 --
Transfers out of level 3/(1)/.................. -- -- (23) --
----------- -------------- ----------- -------- ----------
Balance, December 31, 2016..................... $ 1 $ 40 $ 10,313 $ 313 $ (5,473)
=========== ============== =========== ======== ==========
|
/(1)/Transfers into/out of Level 3 classification are reflected at
beginning-of-period fair values.
/(2)/For the GMIB reinsurance contract asset, and GMxB derivative features
liability, represents attributed fee.
/(3)/For the GMIB reinsurance contract asset, represents recoveries from
reinsurers and for GMxB derivative features liability represents
benefits paid.
/(4)/The Company's non-performance risk is recorded through Net derivative
gains (losses).
F-50
The table below details changes in unrealized gains (losses) for 2018, 2017
and 2016 by category for Level 3 assets and liabilities still held at
December 31, 2018, 2017 and 2016 respectively.
EARNINGS (LOSS)
---------------------------------
NET
INVESTMENT DERIVATIVE
GAINS GAINS
(LOSSES), NET (LOSSES) OCI
------------- ----------- ------
(IN MILLIONS)
HELD AS OF DECEMBER 31, 2018:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ (18)
State and political subdivisions.......... -- -- (1)
Asset-backed.............................. -- -- (7)
------------- ----------- ------
Subtotal................................ -- -- (26)
------------- ----------- ------
GMIB reinsurance contracts.................. -- (1,068) --
Separate Accounts assets/(1)/............... 26 -- --
GMxB derivative features liability.......... -- (786) --
------------- ----------- ------
Total................................... $ 26 $ (1,854) $ (26)
============= =========== ======
Held as of December 31, 2017:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 4
Commercial mortgage-backed................ -- -- 45
Asset-backed.............................. -- -- (9)
Subtotal................................ -- -- 40
------------- ----------- ------
GMIB reinsurance contracts.................. -- 69 --
------------- ----------- ------
Separate Accounts assets/(1)/............... 29 -- --
GMxB derivative features liability.......... -- 1,592 --
------------- ----------- ------
Total................................... $ 29 $ 1,661 $ 40
============= =========== ======
Held as of December 31, 2016:
Change in unrealized gains (losses):
Fixed maturities, available-for-sale
Corporate................................. $ -- $ -- $ 11
State and political subdivisions.......... -- -- (1)
Commercial mortgage-backed................ -- -- 9
Asset-backed.............................. -- -- 1
------------- ----------- ------
Subtotal................................ -- -- 20
------------- ----------- ------
GMIB reinsurance contracts.................. -- (262) --
Separate Accounts assets/(1)/............... 20 -- --
GMxB derivative features liability.......... -- 137 --
------------- ----------- ------
Total................................... $ 20 $ (125) $ 20
============= =========== ======
|
/(1)/There is an investment expense that offsets this investment gain (loss).
F-51
The following tables disclose quantitative information about Level 3 fair
value measurements by category for assets and liabilities as of December 31,
2018 and 2017, respectively.
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2018
FAIR VALUATION SIGNIFICANT WEIGHTED
VALUE TECHNIQUE UNOBSERVABLE INPUT RANGE AVERAGE
------ ---------------------------- ------------------------ ------------- --------
(IN MILLIONS)
ASSETS:
Investments:
Fixed maturities,
available-for- sale:
Corporate................... $ 93 Matrix pricing model Spread over Benchmark 15 - 580 BPS 104 BPS
881 Market comparable companies EBITDA 4.1X - 37.8X 12.1X
multiples Discount 6.4% - 16.5% 10.7%
rate Cash flow multiples 1.8X - 18.0X 11.4X
--------------------------------------------------------------------------------------------------------------------
Separate Accounts assets....... 352 Third party appraisal Capitalization rate Exit 4.4%
capitalization 5.6%
rate Discount rate 6.5%
1 Discounted cash flow Spread over U.S.
Treasury curve Discount 248 BPS
factor 5.1%
--------------------------------------------------------------------------------------------------------------------
GMIB reinsurance Lapse rates Withdrawal
contract asset............... 1,991 Discounted cash flow rates Utilization 1.0% - 6.27%
rates Non-performance 0.0% - 8.0%
risk 0.0% - 16.0%
Volatility rates - 74 - 159 BPS
Equity Mortality 10.0% - 34.0%
rates/(1)/: Ages 0 - 0.01% - 0.18%
40 Ages 41 - 60 Ages 60 0.07% - 0.54%
- 115 0.42% - 42.0%
--------------------------------------------------------------------------------------------------------------------
LIABILITIES:
GMIBNLG........................ 5,341 Discounted cash flow Non-performance 189 BPS
risk Lapse 0.8% - 26.2%
rates Withdrawal rates 0.0% - 12.1%
Annuitization Mortality 0.0% - 100.0%
rates/(1)/: Ages 0 - 0.01% - 0.19%
40 Ages 41 - 60 Ages 60 0.06% - 0.53%
- 115 0.41% - 41.2%
--------------------------------------------------------------------------------------------------------------------
GWBL/GMWB...................... 130 Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 7.0%
rates Volatility rates - 100% AFTER
Equity DELAY
10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GIB............................ (48) Discounted cash flow Lapse rates Withdrawal 0.5% - 5.7%
rates Utilization 0.0% - 8.0%
rates Volatility rates - 0.0% - 16.0%
Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
GMAB........................... 7 Discounted cash flow Lapse rates Volatility 1.0% - 5.7%
rates - Equity 10.0% - 34.0%
--------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-52
QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS AT DECEMBER 31,
2017
Fair Valuation Significant Weighted
Value Technique Unobservable Input Range Average
------- ---------------------- --------------------------------- ------------- --------
(in millions)
Assets:
Investments:
Fixed maturities,
available-for-sale:
Corporate.................. $ 53 Matrix pricing model
Spread over the industry-specific
benchmark yield curve 0 - 565 bps 125 bps
789 Market comparable EBITDA multiples 5.3x - 27.9x 12.9x
companies Discount rate 7.2% - 17.0% 11.1%
Cash flow multiples 9.0x - 17.7x 13.1x
----------------------------------------------------------------------------------------------------------------------
Separate Accounts assets...... 326 Third party appraisal Capitalization rate 4.6%
Exit capitalization rate 5.6%
Discount rate 6.6%
1 Discounted cash flow
Spread over U.S. Treasury curve 243 bps
Discount factor 4.4%
----------------------------------------------------------------------------------------------------------------------
GMIB reinsurance 10,488 Discounted cash flow Lapse rates 1.0% - 6.3%
contract asset.............. Withdrawal rates 0.0% - 8.0%
GMIB Utilization rates 0.0% - 16.0%
Non-performance risk 5bps - 10bps
Volatility rates - Equity 9.9% - 30.9%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.18%
Ages 41 - 60 0.07% - 0.54%
Ages 60 - 115 0.42% - 42.0%
----------------------------------------------------------------------------------------------------------------------
Liabilities:
GMIBNLG....................... 4,149 Discounted cash flow Non-performance risk 1.0%
Lapse rates 0.8% - 26.2%
Withdrawal rates 0.0% - 12.4%
Utilization rates 0.0% - 16.0%
NLG Forfeiture rates 0.6% - 2.1%
Long-term equity volatility 20.0%
Mortality rates/(1)/:
Ages 0 - 40 0.01% - 0.19%
Ages 41 - 60 0.06% - 0.53%
Ages 60 - 115 0.41% - 41.2%
----------------------------------------------------------------------------------------------------------------------
GWBL/GMWB..................... 130 Discounted cash flow Lapse rates 0.9% - 5.7%
Withdrawal rates 0.0% - 7.0%
Utilization rates 0.0% - 16.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GIB........................... (27) Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
GMAB.......................... 5 Discounted cash flow Lapse rates 0.5% - 11.0%
Volatility rates - Equity 9.9% - 30.9%
----------------------------------------------------------------------------------------------------------------------
|
/(1)/Mortality rates vary by age and demographic characteristic such as
gender. Mortality rate assumptions are based on a combination of company
and industry experience. A mortality improvement assumption is also
applied. For any given contract, mortality rates vary throughout the
period over which cash flows are projected for purposes of valuating the
embedded derivatives.
F-53
Excluded from the tables above at December 31, 2018 and 2017, respectively,
are approximately $826 million and $392 million of Level 3 fair value
measurements of investments for which the underlying quantitative inputs are
not developed by the Company and are not readily available. These
investments primarily consist of certain privately placed debt securities
with limited trading activity, including residential mortgage- and
asset-backed instruments, and their fair values generally reflect unadjusted
prices obtained from independent valuation service providers and indicative,
non-binding quotes obtained from third-party broker-dealers recognized as
market participants. Significant increases or decreases in the fair value
amounts received from these pricing sources may result in the Company's
reporting significantly higher or lower fair value measurements for these
Level 3 investments.
The fair value of private placement securities is determined by application
of a matrix pricing model or a market comparable company value technique.
The significant unobservable input to the matrix pricing model valuation
technique is the spread over the industry-specific benchmark yield curve.
Generally, an increase or decrease in spreads would lead to directionally
inverse movement in the fair value measurements of these securities. The
significant unobservable input to the market comparable company valuation
technique is the discount rate. Generally, a significant increase (decrease)
in the discount rate would result in significantly lower (higher) fair value
measurements of these securities.
Residential mortgage-backed securities classified as Level 3 primarily
consist of non-agency paper with low trading activity. Included in the
tables above at December 31, 2018 and 2017, there were no Level 3 securities
that were determined by application of a matrix-pricing model and for which
the spread over the U.S. Treasury curve is the most significant unobservable
input to the pricing result. Generally, a change in spreads would lead to
directionally inverse movement in the fair value measurements of these
securities.
Asset-backed securities classified as Level 3 primarily consist of
non-agency mortgage loan trust certificates, including subprime and Alt-A
paper, credit tenant loans, and equipment financings. Included in the tables
above at December 31, 2018 and 2017, there were no securities that were
determined by the application of matrix-pricing for which the spread over
the U.S. Treasury curve is the most significant unobservable input to the
pricing result. Significant increases (decreases) in spreads would result in
significantly lower (higher) fair value measurements.
Included in other equity investments classified as Level 3 are reporting
entities' venture capital securities in the Technology, Media and
Telecommunications industries. The fair value measurements of these
securities include significant unobservable inputs including an enterprise
value to revenue multiples and a discount rate to account for liquidity and
various risk factors. Significant increases (decreases) in the enterprise
value to revenue multiple inputs in isolation would result in a
significantly higher (lower) fair value measurement. Significant increases
(decreases) in the discount rate would result in a significantly lower
(higher) fair value measurement.
Separate Accounts assets classified as Level 3 in the table at December 31,
2018 and 2017, primarily consist of a private real estate fund and mortgage
loans. A third-party appraisal valuation technique is used to measure the
fair value of the private real estate investment fund, including
consideration of observable replacement cost and sales comparisons for the
underlying commercial properties, as well as the results from applying a
discounted cash flow approach. Significant increase (decrease) in isolation
in the capitalization rate and exit capitalization rate assumptions used in
the discounted cash flow approach to the appraisal value would result in a
higher (lower) measure of fair value. With respect to the fair value
measurement of mortgage loans a discounted cash flow approach is applied, a
significant increase (decrease) in the assumed spread over U.S. Treasury
securities would produce a lower (higher) fair value measurement. Changes in
the discount rate or factor used in the valuation techniques to determine
the fair values of these private equity investments and mortgage loans
generally are not correlated to changes in the other significant
unobservable inputs. Significant increase (decrease) in isolation in the
discount rate or factor would result in significantly lower (higher) fair
value measurements. These fair value measurements are determined using
substantially the same valuation techniques as earlier described above for
the Company's General Account investments in these securities.
Significant unobservable inputs with respect to the fair value measurement
of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities
identified in the table above are developed using the Company data.
Validations of unobservable inputs are performed to the extent the Company
has experience. When an input is changed the model is updated and the
results of each step of the model are analyzed for reasonableness.
The significant unobservable inputs used in the fair value measurement of
the Company's GMIB reinsurance contract asset are lapse rates, withdrawal
rates and GMIB utilization rates. Significant increases in GMIB utilization
rates or decreases in lapse or withdrawal rates in isolation would tend to
increase the GMIB reinsurance contract asset.
Fair value measurement of the GMIB reinsurance contract asset and
liabilities includes dynamic lapse and GMIB utilization assumptions whereby
projected contractual lapses and GMIB utilization reflect the projected net
amount of risks of the contract. As the net amount of risk of a contract
increases, the assumed lapse rate decreases and the GMIB utilization
increases. Increases in volatility would increase the asset and liabilities.
F-54
The significant unobservable inputs used in the fair value measurement of
the Company's GMIBNLG liability are lapse rates, withdrawal rates, GMIB
utilization rates, adjustment for Non-performance risk and NLG forfeiture
rates. NLG forfeiture rates are caused by excess withdrawals above the
annual GMIB accrual rate that cause the NLG to expire. Significant decreases
in lapse rates, NLG forfeiture rates, adjustment for non-performance risk
and GMIB utilization rates would tend to increase the GMIBNLG liability,
while decreases in withdrawal rates and volatility rates would tend to
decrease the GMIBNLG liability.
The significant unobservable inputs used in the fair value measurement of
the Company's GMWB and GWBL liability are lapse rates and withdrawal rates.
Significant increases in withdrawal rates or decreases in lapse rates in
isolation would tend to increase these liabilities. Increases in volatility
would increase these liabilities.
Certain financial instruments are exempt from the requirements for fair
value disclosure, such as insurance liabilities other than financial
guarantees and investment contracts, limited partnerships accounted for
under the equity method and pension and other postretirement obligations.
The carrying values and fair values at December 31, 2018 and 2017 for
financial instruments not otherwise disclosed in Note 3 are presented in the
table below.
FAIR VALUE
CARRYING -----------------------------------
VALUE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------- -------- -------- -------- --------
(IN MILLIONS)
DECEMBER 31, 2018:
Mortgage loans on real estate................ $ 11,818 $ -- $ -- $ 11,478 $ 11,478
Loans to affiliates.......................... 600 -- 603 -- 603
Policyholders' liabilities:
Investment contracts....................... 1,974 -- -- 2,015 2,015
FHLBNY funding agreements.................... 4,002 -- 3,956 -- 3,956
Policy loans................................. 3,267 -- -- 3,944 3,944
Short-term and long-term debt................ -- -- -- -- --
Loans from affiliates........................ 572 -- 572 -- 572
Separate Accounts liabilities................ 7,406 -- -- 7,406 7,406
December 31, 2017:
Mortgage loans on real estate................ $ 10,935 $ -- $ -- $ 10,895 $ 10,895
Loans to affiliates.......................... 703 -- 700 -- 700
Policyholders' liabilities:
Investment contracts....................... 2,068 -- -- 2,170 2,170
FHLBNY funding agreements.................... 3,014 -- 3,020 -- 3,020
Policy loans................................. 3,315 -- -- 4,210 4,210
Short-term and long-term debt................ 203 -- 202 -- 202
Separate Accounts liabilities................ 7,537 -- -- 7,537 7,537
|
As our COLI policies are recorded at their cash surrender value, they are
not required to be included in the table above. For further details of our
accounting policies pertaining to COLI, see Note 2.
Fair values for commercial and agricultural mortgage loans on real estate
are measured by discounting future contractual cash flows to be received on
the mortgage loan using interest rates at which loans with similar
characteristics and credit quality would be made. The discount rate is
derived based on the appropriate U.S. Treasury rate with a like term to the
remaining term of the loan to which a spread reflective of the risk premium
associated with the specific loan is added. Fair values for mortgage loans
anticipated to be foreclosed and problem mortgage loans are limited to the
fair value of the underlying collateral, if lower.
Fair values for the Company's long-term debt related to real estate joint
ventures are determined by a third-party appraisal and assessed for
reasonableness. The Company's short-term debt primarily includes commercial
paper with short-term maturities and carrying value approximates fair value.
The fair values for the Company's other long-term debt are determined by
Bloomberg's evaluated pricing service, which uses direct observations or
observed comparables. The fair values of the Company's borrowing and lending
arrangements with AXA affiliated entities are determined in the same manner
as for such transactions with third parties, including matrix pricing models
for debt securities and discounted cash flow analysis for mortgage loans.
The fair value of policy loans is calculated by discounting expected cash
flows based upon the U.S. treasury yield curve and historical loan repayment
patterns.
F-55
The fair values of the Company's funding agreements are determined by
discounted cash flow analysis based on the indicative funding agreement
rates published by the FHLB.
The fair values for the Company's association plans contracts, supplementary
contracts not involving life contingencies ("SCNILC"), deferred annuities
and certain annuities, which are included in Policyholders' account balances
and liabilities for investment contracts with fund investments in Separate
Accounts are estimated using projected cash flows discounted at rates
reflecting current market rates. Significant unobservable inputs reflected
in the cash flows include lapse rates and withdrawal rates. Incremental
adjustments may be made to the fair value to reflect non-performance risk.
Certain other products such as Access Accounts and Escrow Shield Plus
product reserves are held at book value.
8) INSURANCE LIABILITIES
Variable Annuity Contracts -- GMDB, GMIB, GIB and GWBL and Other Features
The Company has certain variable annuity contracts with GMDB, GMIB, GIB and
GWBL and other features in-force that guarantee one of the following:
. Return of Premium: the benefit is the greater of current account
value or premiums paid (adjusted for withdrawals);
. Ratchet: the benefit is the greatest of current account value,
premiums paid (adjusted for withdrawals), or the highest account
value on any anniversary up to contractually specified ages (adjusted
for withdrawals);
. Roll-Up: the benefit is the greater of current account value or
premiums paid (adjusted for withdrawals) accumulated at contractually
specified interest rates up to specified ages;
. Combo: the benefit is the greater of the ratchet benefit or the
roll-up benefit, which may include either a five year or an annual
reset; or
. Withdrawal: the withdrawal is guaranteed up to a maximum amount per
year for life.
LIABILITIES FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES AND
NO NLG FEATURE
The change in the liabilities for variable annuity contracts with GMDB and
GMIB features and no NLG feature are summarized in the tables below. The
amounts for the direct contracts (before reinsurance ceded) and assumed
contracts are reflected in the consolidated balance sheets in Future policy
benefits and other policyholders' liabilities. The amounts for the ceded
contracts are reflected in the consolidated balance sheets in Amounts due
from reinsurers.
CHANGE IN LIABILITY FOR VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AND
NO NLG FEATURE
FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
GMDB GMIB
---------------- ----------------
DIRECT CEDED DIRECT CEDED
------- ------- ------ --------
(IN MILLIONS)
Balance at January 1, 2016................... $ 2,991 $(1,430) $3,886 $(10,575)
Paid guarantee benefits.................... (357) 174 (281) 230
Other changes in reserve................... 525 (302) 203 31
------- ------- ------ --------
Balance at December 31, 2016................. 3,159 (1,558) 3,808 (10,314)
Paid guarantee benefits.................... (354) 171 (151) 115
Other changes in reserve................... 1,249 (643) 1,097 (289)
------- ------- ------ --------
Balance at December 31, 2017................. 4,054 (2,030) 4,754 (10,488)
Paid guarantee benefits.................... (394) 70 (153) 61
Other changes in reserve................... 994 1,853 (860) 8,435
------- ------- ------ --------
Balance at December 31, 2018................. $ 4,654 $ (107) $3,741 $ (1,992)
======= ======= ====== ========
|
F-56
LIABILITIES FOR EMBEDDED AND FREESTANDING INSURANCE RELATED DERIVATIVES
The liability for the GMxB derivative features liability, the liability for
SCS, SIO, MSO and IUL indexed features and the asset and liability for the
GMIB reinsurance contracts are considered embedded or freestanding insurance
derivatives and are reported at fair value. For the fair value of the assets
and liabilities associated with these embedded or freestanding insurance
derivatives, see Note 7.
ACCOUNT VALUES AND NET AMOUNT AT RISK
Account Values and Net Amount at Risk ("NAR") for direct variable annuity
contracts in force with GMDB and GMIB features as of December 31, 2018 are
presented in the following tables by guarantee type. For contracts with the
GMDB feature, the NAR in the event of death is the amount by which the GMDB
feature exceeds the related Account Values. For contracts with the GMIB
feature, the NAR in the event of annuitization is the amount by which the
present value of the GMIB benefits exceed the related Account Values, taking
into account the relationship between current annuity purchase rates and the
GMIB guaranteed annuity purchase rates. Since variable annuity contracts
with GMDB features may also offer GMIB guarantees in the same contract, the
GMDB and GMIB amounts listed are not mutually exclusive.
DIRECT VARIABLE ANNUITY CONTRACTS WITH GMDB AND GMIB FEATURES
AS OF DECEMBER 31, 2018
GUARANTEE TYPE
---------------------------------------------------------
RETURN OF
PREMIUM RATCHET ROLL-UP COMBO TOTAL
---------- ----------- ---------- --------- ---------
(IN MILLIONS; EXCEPT AGE AND INTEREST RATE)
Variable annuity contracts with GMDB features
---------------------------------------------
Account Values invested in:
General Account............................ $ 14,035 $ 102 $ 61 $ 184 $ 14,382
Separate Accounts.......................... 41,463 8,382 2,903 30,406 83,154
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ 55,498 $ 8,484 $ 2,964 $ 30,590 $ 97,536
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ 418 $ 791 $ 2,291 $ 20,587 $ 24,087
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ 418 $ 772 $ 1,615 $ 20,587 $ 23,392
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. 51.4 67.0 73.6 69.0 55.3
Percentage of policyholders over age 70..... 10.0% 43.0% 65.5% 49.9% 18.8%
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
Variable annuity contracts with GMIB features
---------------------------------------------
Account Values invested in:
General Account............................ $ -- $ -- $ 19 $ 251 $ 270
Separate Accounts.......................... -- -- 19,407 33,428 52,835
---------- ----------- ---------- --------- ---------
Total Account Values........................ $ -- $ -- $ 19,426 $ 33,679 $ 53,105
========== =========== ========== ========= =========
Net Amount at Risk, gross................... $ -- $ -- $ 994 $ 9,156 $ 10,150
========== =========== ========== ========= =========
Net Amount at Risk, net of
amounts reinsured.......................... $ -- $ -- $ 309 $ 8,268 $ 8,577
========== =========== ========== ========= =========
Average attained age of policyholders
(in years).................................. N/A N/A 68.9 68.8 68.8
Weighted average years remaining
until annuitization........................ N/A N/A 1.7 0.5 0.6
Range of contractually specified
interest rates............................. N/A N/A 3% - 6% 3% - 6.5% 3% - 6.5%
|
For more information about the reinsurance programs of the Company's GMDB
and GMIB exposure, see "Reinsurance Agreements" in Note 10.
F-57
Separate Account Investments by Investment Category Underlying Variable
Annuity Contracts with GMDB and GMIB Features
The total Account Values of variable annuity contracts with GMDB and GMIB
features include amounts allocated to the guaranteed interest option, which
is part of the General Account and variable investment options that invest
through Separate Accounts in variable insurance trusts. The following table
presents the aggregate fair value of assets, by major investment category,
held by Separate Accounts that support variable annuity contracts with GMDB
and GMIB features. The investment performance of the assets impacts the
related Account Values and, consequently, the NAR associated with the GMDB
and GMIB benefits and guarantees. Because the Company's variable annuity
contracts offer both GMDB and GMIB features, GMDB and GMIB amounts are not
mutually exclusive.
INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
AS OF DECEMBER 31,
-----------------------------------
2018 2017
----------------- -----------------
GMDB GMIB GMDB GMIB
-------- -------- -------- --------
(IN MILLIONS)
Investment type:
----------------
Equity....................................... $ 35,541 $ 15,759 $ 41,658 $ 19,676
Fixed income................................. 5,173 2,812 5,469 3,110
Balanced..................................... 41,588 33,974 46,577 38,398
Other........................................ 852 290 968 314
-------- -------- -------- --------
Total........................................ $ 83,154 $ 52,835 $ 94,672 $ 61,498
======== ======== ======== ========
|
Hedging Programs for GMDB, GMIB, GIB and Other Features
Beginning in 2003, the Company established a program intended to hedge
certain risks associated first with the GMDB feature and, beginning in 2004,
with the GMIB feature of the Accumulator series of variable annuity
products. The program has also been extended to cover other guaranteed
benefits as they have been made available. This program utilizes derivative
contracts, such as exchange-traded equity, currency and interest rate
futures contracts, total return and/or equity swaps, interest rate swap and
floor contracts, swaptions, variance swaps as well as equity options, that
collectively are managed in an effort to reduce the economic impact of
unfavorable changes in guaranteed benefits' exposures attributable to
movements in the capital markets. At the present time, this program hedges
certain economic risks on products sold from 2001 forward, to the extent
such risks are not externally reinsured.
These programs do not qualify for hedge accounting treatment. Therefore,
gains (losses) on the derivatives contracts used in these programs,
including current period changes in fair value, are recognized in Net
investment income (loss) in the period in which they occur, and may
contribute to income (loss) volatility.
Variable and Interest-Sensitive Life Insurance Policies -- NLG
The NLG feature contained in variable and interest-sensitive life insurance
policies keeps them in force in situations where the policy value is not
sufficient to cover monthly charges then due. The NLG remains in effect so
long as the policy meets a contractually specified premium funding test and
certain other requirements.
The change in the liabilities for NLG liabilities, reflected in the General
Account in Future policy benefits and other policyholders' liabilities in
the consolidated balance sheets is summarized in the table below:
DIRECT REINSURANCE
LIABILITY CEDED NET
---------- ----------- -----
(IN MILLIONS)
Balance at January 1, 2016........................ $ 1,144 $ (510) $ 634
Other changes in reserves....................... 38 (96) (58)
---------- ----------- -----
Balance at December 31, 2016...................... 1,182 (606) 576
Paid guarantee benefits......................... (24) -- (24)
Other changes in reserves....................... (466) (58) (524)
---------- ----------- -----
Balance at December 31, 2017...................... 692 (664) 28
Paid guarantee benefits......................... (23) -- (23)
Other changes in reserves....................... 118 (69) 49
---------- ----------- -----
Balance at December 31, 2018...................... $ 787 $ (733) $ 54
========== =========== =====
|
F-58
9) REVENUE RECOGNITION
See "Revenue Recognition" in Note 2 for a description of the revenues
presented in the table below. The adoption of ASC 606 had no material impact
on revenue recognition in 2018. The table below presents the revenues
recognized for the years ended December 31, 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Investment management, advisory and service fees:
Base fees........................................... $ 728 $ 720 $ 674
Distribution services............................... 301 287 277
-------- -------- ------
Total investment management and service fees....... $ 1,029 $ 1,007 $ 951
======== ======== ======
Other income.......................................... $ 33 $ 35 $ 23
======== ======== ======
|
For revenue related to AB, see Note 19.
10)REINSURANCE AGREEMENTS
The Company assumes and cedes reinsurance with other insurance companies.
The Company evaluates the financial condition of its reinsurers to minimize
its exposure to significant losses from reinsurer insolvencies. Ceded
reinsurance does not relieve the originating insurer of liability. The
following table summarizes the effect of reinsurance:
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- ------
(IN MILLIONS)
Direct premiums.................................... $ 836 $ 880 $ 850
Reinsurance assumed................................ 186 195 206
Reinsurance ceded.................................. (160) (171) (176)
-------- -------- ------
Net premiums....................................... $ 862 $ 904 $ 880
======== ======== ======
Policy charges and fee income ceded................ $ 467 $ 718 $ 640
======== ======== ======
Policyholders' benefits ceded...................... $ 592 $ 694 $ 942
======== ======== ======
|
Ceded Reinsurance
The Company reinsures most of its new variable life, UL and term life
policies on an excess of retention basis. The Company generally retains on a
per life basis up to $25 million for single lives and $30 million for joint
lives with the excess 100% reinsured. The Company also reinsures risk on
certain substandard underwriting risks and in certain other cases.
Effective February 1, 2018, AXA Equitable Life entered into a coinsurance
reinsurance agreement (the "Coinsurance Agreement") to cede 90% of
its single premium deferred annuities ("SPDA") products issued between
1978-2001 and its Guaranteed Growth Annuity ("GGA") single premium deferred
annuity products issued between 2001-2014. As a result of this agreement,
AXA Equitable Life transferred securities with a market value of $604
million and cash of $31 million to equal the statutory reserves of
approximately $635 million. As the risks transferred by AXA Equitable Life
to the reinsurer under the Coinsurance Agreement are not considered
insurance risks and therefore do not qualify for reinsurance accounting, AXA
Equitable Life applied deposit accounting. Accordingly, AXA Equitable Life
recorded the transferred assets of $635 million as a deposit asset recorded
in Other assets, net of the ceding commissions paid to the reinsurer.
At December 31, 2018 and 2017, the Company had reinsured with non-affiliates
in the aggregate approximately 2.9% and 3.5%, respectively, of its current
exposure to the GMDB obligation on annuity contracts in-force and, subject
to certain maximum amounts or caps in any one period, approximately 15.5%
and 16.8% of its current liability exposure, respectively, resulting from
the GMIB feature. For additional information, see Note 8.
Based on management's estimates of future contract cash flows and
experience, the estimated net fair values of the ceded GMIB reinsurance
contracts, considered derivatives were $1,991 million and $10,488 million at
December 31, 2018 and 2017, respectively. The estimated fair values
decreased $8,497 million and $268 million during 2018 and 2016,
respectively, and increased $174 million during 2017.
F-59
At December 31, 2018 and 2017, third-party reinsurance recoverables related
to insurance contracts amounted to $2,243 million and $2,420 million,
respectively. Additionally, $1,689 million and $1,882 million of the amounts
due from reinsurers related to two specific reinsurers, Zurich Insurance
Company Ltd. (AA -- rating by S&P), and Paul Revere Life Insurance Company
(A -- rating by S&P).
Reinsurance payables related to insurance contracts were $113 million and
$134 million, at December 31, 2018 and 2017, respectively.
The Company cedes substantially all of its group health business to a
third-party insurer. Insurance liabilities ceded totaled $62 million and $71
million at December 31, 2018 and 2017, respectively.
The Company also cedes a portion of its extended term insurance and paid-up
life insurance and substantially all of its individual disability income
business through various coinsurance agreements.
Assumed Reinsurance
In addition to the sale of insurance products, the Company currently acts as
a professional retrocessionaire by assuming risk from professional
reinsurers. The Company assumes accident, life, health, aviation, special
risk and space risks by participating in or reinsuring various reinsurance
pools and arrangements. Reinsurance assumed reserves were $712 million and
$716 million at December 31, 2018 and 2017, respectively.
For reinsurance agreements with affiliates, see "Related Party Transactions"
in Note 12.
11)LONG-TERM DEBT
Disposition of Real Estate Joint Ventures
In March 2018, the Company sold its interest in two consolidated real estate
joint ventures to AXA France for a total purchase price of approximately
$143 million, which resulted in a pre-tax loss of $0.2 million and the
reduction of $202 million of long-term debt on the Company's balance sheet
for the year ended December 31, 2018.
12)RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control
or exercise significant influence over the other party in making financial
or operating decisions. The Company has entered into a number of related
party transactions with AXA and its subsidiaries that are not part of the
Company (collectively, "AXA Affiliates") and other related parties that are
described herein.
Since transactions with related parties may raise potential or actual
conflicts of interest between the related party and the Company, the Company
is subject to Holdings' related party transaction policy which requires
certain related party transactions to be reviewed and approved by
independent Audit Committee members.
Cost Sharing and General Service Agreements
In the second quarter of 2018, AXA Equitable entered into a general services
agreement with Holdings whereby AXA Equitable will benefit from the services
received by Holdings from AXA Affiliates for a limited period following the
Holdings IPO under a transition services agreement. The general services
agreement with Holdings replaces existing cost-sharing and general service
agreements with various AXA Affiliates. AXA Equitable continues to provide
services to Holdings and various AXA Affiliates under a separate existing
general services agreement with Holdings. Costs allocated to the Company
from Holdings totaled $138 million for the year ended December 31, 2018 and
are allocated based on cost center tracking of expenses. The cost centers
are approved once a year and are updated based on business area needs
throughout the year.
Loans to Affiliates:
AFFILIATE LOANS
On April 20, 2018, AXA Equitable made a loan of $800 million to Holdings
with an interest rate of 3.69% and maturing on April 20, 2021. Holdings
repaid $200 million of the note on December 21, 2018. The unpaid principal
balance of the note as of December 31, 2018 is $600 million.
F-60
In September 2007, AXA issued a $700 million 5.7% Senior Unsecured Note to
the Company. In January 2018, AXA pre-paid $50 million of the note. In April
2018, AXA pre-paid the remaining unpaid principal balance of this note.
SENIOR SURPLUS NOTES
On December 28, 2018, AXA Equitable, issued a $572 million senior surplus
note due December 28, 2019 to Holdings, which bears interest at a fixed rate
of 3.75%, payable semi-annually. The surplus note is intended to have
priority in right of payments and in all other respects to any and all other
surplus notes issued by AXA Equitable at any time. AXA Equitable repaid this
note on March 5, 2019.
Affiliate fees, revenue and expenses
INVESTMENT MANAGEMENT AND SERVICE FEES AND EXPENSES
AXA Equitable FMG, a subsidiary of AXA Equitable, provides investment
management and administrative services to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts, all of which are considered related parties. Investment
management and service fees earned are calculated as a percentage of assets
under management and are recorded as revenue as the related services are
performed.
AXA Investment Managers Inc. ("AXA IM") and AXA Rosenberg Investment
Management LLC ("AXA Rosenberg") provide sub-advisory services with respect
to certain portfolios of EQAT, VIP Trust and the Other AXA Trusts. Also, AXA
IM and AXA Real Estate Investment Managers ("AXA REIM") manage certain
General Account investments. Fees paid to these affiliates are based on
investment advisory service agreements with each affiliate.
Effective December 31, 2018, AXA Equitable transferred its interest in ABLP,
AB Holdings and the General Partner to a newly formed subsidiary and
distributed the shares of the subsidiary to its direct parent which
subsequently distributed the shares to Holdings (the "AB Business
Transfer"). Accordingly, AB's related party transactions with AXA Affiliates
and mutual funds sponsored by AB are now reflected as a discontinued
operation in the Company's consolidated financial statements for all periods
presented. Investment management and other services provided by AB to mutual
funds sponsored by AB prior to the AB Business Transfer will continue based
upon the Company's business needs. See Note 19 for further details of the AB
Business Transfer and the discontinued operation.
AFFILIATED DISTRIBUTION REVENUE AND EXPENSES
AXA Distributors receives commissions and fee revenue from MONY America for
sales of its insurance products. The commissions and fees earned from MONY
America are based on the various selling agreements.
AXA Equitable pays commissions and fees to AXA Distribution Holding
Corporation and its subsidiaries ("AXA Distribution") for sales of insurance
products. The commissions and fees paid to AXA Distribution are based on
various selling agreements.
Insurance related transactions
Prior to April 2018, AXA Equitable ceded to AXA RE Arizona, an indirect,
wholly owned subsidiary of Holdings, a (i) 100% quota share of all
liabilities for variable annuities with GMxB riders issued on or after
January 1, 2006 and in-force on September 30, 2008 (the "GMxB Business"),
(ii) 100% quota share of all liabilities for variable annuities with GMIB
riders issued on or after May 1, 1999 through August 31, 2005 in excess of
the liability assumed by two unaffiliated reinsurers, which are subject to
certain maximum amounts or limitations on aggregate claims, and (iii) 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under certain series of universal life insurance policies issued by AXA
Equitable on or after June 1, 2003 through June 30, 2007.
On April 12, 2018, AXA Equitable completed the unwind of the reinsurance
previously provided to AXA Equitable by AXA RE Arizona. Accordingly, all of
the business previously ceded to AXA RE Arizona, with the exception of the
GMxB Business, was novated to EQ AZ Life Re Company ("EQ AZ Life Re"), a
newly formed captive insurance company organized under the laws of Arizona,
which is an indirect wholly owned subsidiary of Holdings. Following the
novation of business to EQ AZ Life Re, AXA RE Arizona was merged with and
into AXA Equitable. Following AXA RE Arizona's merger with and into AXA
Equitable, the GMxB Business is not subject to any new internal or
third-party reinsurance arrangements, though in the future AXA Equitable may
reinsure the GMxB Business with third parties.
AXA RE Arizona novated the Life Business from AXA RE Arizona to EQ AZ Life
Re as part of the GMxB Unwind. As a result, EQ AZ Life Re reinsures a 90%
quota share of level premium term insurance issued by AXA Equitable on or
after March 1, 2003 through December 31, 2008 and lapse protection riders
under UL insurance policies issued by AXA Equitable on or after June 1, 2003
through June 30, 2007 and the Excess Risks.
F-61
The GMxB Unwind was considered a pre-existing relationship required to be
effectively settled at fair value. The loss relating to this relationship
resulted from the settlement of the reinsurance contracts at fair value and
the write-off of previously recorded assets and liabilities related to this
relationship recorded in the Company's historical accounts. The pre-tax loss
recognized in the second quarter of 2018 was $2.6 billion ($2.1 billion net
of tax). The Company wrote-off a $1.8 billion deferred cost of reinsurance
asset which was previously reported in Other assets. Additionally, the
remaining portion of the loss was determining by calculating the difference
between the fair value of the assets received compared to the fair value of
the assets and liabilities already recorded within the Company's
consolidated financial statements. The Company's primary assets previously
recorded were reinsurance recoverables, including the reinsurance
recoverable associated with GMDB business. There was an approximate $400
million difference between the fair value of the GMDB recoverable compared
to its carrying value which is accounted for under ASC 944.
The assets received and the assets removed were as follows:
AS OF APRIL 12, 2018
(IN MILLIONS)
ASSETS RECEIVED ASSETS REMOVED
--------------- ----------------
Assets at fair value:
Fixed income securities.................... $ 7,083
Short-term investments..................... 205
Money market funds......................... 2
Accrued interest........................... 43
Derivatives................................ 282
Cash and cash equivalents.................. 1,273
---------------
Total...................................... $ 8,888
===============
Deferred cost of reinsurance asset........... $ 1,839
GMDB ceded reserves.......................... 2,317
GMIB reinsurance contract asset.............. 7,463
Payable to AXA RE Arizona.................... 270
----------------
Total...................................... $ 11,889
================
|
Significant non-cash transactions involved in the unwind of the reinsurance
previously provided to AXA Equitable Life by AXA RE Arizona included:
(a) the increase in total investments includes non-cash activities of $7,615
million for assets received related to the recapture transaction,
(b) cancellation of the $300 million surplus note between the Company and
AXA RE Arizona, and (c) settlement of the intercompany receivables/payables
to AXA RE Arizona of $270 million. In addition, upon merging the remaining
assets of AXA Re Arizona into AXA Equitable, $1.2 billion of deferred tax
assets were recorded on the balance sheet through an adjustment to Capital
in excess of par value.
The reinsurance arrangements with EQ AZ Life Re provide important capital
management benefits to AXA Equitable. At December 31, 2018, the Company's
GMIB reinsurance asset with EQ AZ Life Re had carrying values of $259
million and is reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2018 totaled approximately $100 million. Ceded claims
paid in 2018 were $78 million.
Prior to April 2018, AXA Equitable reinsured to AXA RE Arizona, a 100% quota
share of all liabilities for variable annuities with enhanced GMDB and GMIB
riders issued on or after January 1, 2006 and in-force on September 30,
2008. AXA RE Arizona also reinsured a 90% quota share of level premium term
insurance issued by AXA Equitable on or after March 1, 2003 through
December 31, 2008 and lapse protection riders under UL insurance policies
issued by AXA Equitable on or after June 1, 2003 through June 30, 2007. The
reinsurance arrangements with AXA RE Arizona provided important capital
management benefits to AXA Equitable. At December 31, 2017, the Company's
GMIB reinsurance asset with AXA RE Arizona had a carrying value of $8,594
million and was reported in Guaranteed minimum income benefit reinsurance
asset, at fair value in the consolidated balance sheets. Ceded premiums and
policy fee income in 2017 and 2016 totaled approximately $454 million
and $447 million, respectively. Ceded claims paid in 2017 and 2016 were
$213 million and $65 million, respectively.
The Company receives statutory reserve credits for reinsurance treaties with
EQ AZ Life Re to the extent that EQ AZ Life Re holds assets in an
irrevocable trust (the "Trust"). At December 31, 2018, EQ AZ Life Re held
assets of $1.6 billion in the Trust, and had letters of credit of
$2.5 billion, which are guaranteed by Holdings. Under the reinsurance
transactions, EQ AZ Life Re is permitted to transfer assets from the Trust
under certain circumstances. The level of statutory reserves held by EQ AZ
Life Re fluctuate based on market movements, mortality experience and
policyholder behavior. Increasing reserve requirements may necessitate that
additional assets be placed in trust and/or securing additional letters of
credit, which could adversely impact EQ AZ Life Re's liquidity.
F-62
AXA Global Life retrocedes a quota share portion of certain life and health
risks of various AXA Affiliates to AXA Equitable on a one-year term basis.
Also, AXA Life Insurance Company Ltd. cedes a portion of its variable
deferred annuity business to AXA Equitable.
Premiums earned in 2018, 2017 and 2016 were $20 million, $20 million and $20
million, respectively. Claims and expenses paid in 2018, 2017 and 2016 were
$8 million, $5 million, and $6 million, respectively.
REINSURANCE CEDED
AXA Equitable cedes a portion of its life, health and catastrophe insurance
business through reinsurance agreements to AXA Global Life, an affiliate.
AXA Global Life, in turn, retrocedes a quota share portion of these risks
prior to 2008 to AXA Equitable on a one-year term basis.
AXA Equitable has entered into a Life Catastrophe Excess of Loss Reinsurance
Agreement with a number of subscribing reinsurers, including AXA Global
Life. AXA Global Life participates in 5% of the pool, pro-rata, across the
upper and lower layers.
Premiums and expenses paid for the above agreements in 2018, 2017 and 2016
were $4 million, $4 million, and $4 million, respectively.
Other Transactions
On October 1, 2018, AXA Financial merged with and into its direct parent,
Holdings, with Holdings continuing as the surviving entity. As a result,
Holdings assumed AXA Financial's obligations with respect to the Company,
including obligations related to certain benefit plans.
In March 2018, AXA Equitable sold its interest in two consolidated real
estate joint ventures to AXA France for a total purchase price of
approximately $143 million, which resulted in a pre-tax loss of $0.2 million
and the reduction of $202 million of long-term debt on the Company's balance
sheet for the year ended December 31, 2018.
In 2016, AXA Equitable and Saum Sing LLC ("Saum Sing"), an affiliate, formed
Broad Vista Partners LLC ("Broad Vista"), of which AXA Equitable owns 70%
and Saum Sing owns 30%. On June 30, 2016, Broad Vista entered into a real
estate joint venture with a third party and AXA Equitable invested
approximately $25 million.
Insurance Coverage Provided by XL Catlin
On September 12, 2018, AXA Group acquired XL Catlin. Prior to the
acquisition, AXA Equitable had ceded part of our disability income business
to XL Catlin and as of December 31, 2018, the reserves ceded were $93
million.
Expenses and Revenues for 2018, 2017 and 2016
The table below summarizes the expenses reimbursed to/from the Company and
the fees received/paid by the Company in connection with certain services
described above for the years ended December 31, 2018, 2017 and 2016.
YEARS ENDED DECEMBER 31,
--------------------------
2018 2017 2016
-------- -------- --------
(IN MILLIONS)
EXPENSES PAID OR ACCRUED FOR:
Paid or accrued commission and fee expenses for
sale of insurance products by AXA Distribution.. $ 613 $ 608 $ 587
General services provided by AXA Affiliates....... 109 186 188
Investment management services provided by AXA
IM, AXA REIM and AXA Rosenberg.................. 2 5 2
-------- -------- --------
Total............................................. $ 724 $ 799 $ 777
======== ======== ========
REVENUE RECEIVED OR ACCRUED FOR:
Investment management and administrative services
provided to EQAT, VIP Trust, 1290 Funds and
Other AXA Trusts................................ $ 727 $ 720 $ 674
General services provided to AXA Affiliates....... 463 439 497
Amounts received or accrued for commissions and
fees earned for sale of MONY America's
insurance products.............................. 44 45 43
-------- -------- --------
Total............................................. $ 1,234 $ 1,204 $ 1,214
======== ======== ========
|
F-63
13)EMPLOYEE BENEFIT PLANS
401(k)
AXA Equitable sponsors the AXA Equitable 401(k) Plan, a qualified defined
contribution plan for eligible employees and financial professionals. The
plan provides for both a company contribution and a discretionary
profit-sharing contribution. Expenses associated with this 401(k) Plan were
$19 million, $15 million and $16 million for the years ended December 31,
2018, 2017 and 2016, respectively. In December 2018 the Company announced a
3% Company match for the AXA Equitable 401(k) Plan beginning January 1,
2019. This match will supplement the existing Company contribution on
eligible compensation.
Pension plan
AXA Equitable also sponsors the AXA Equitable Retirement Plan (the "AXA
Equitable QP"), a frozen qualified defined benefit pension plan covering its
eligible employees and financial professionals. This pension plan is
non-contributory and its benefits are generally based on a cash balance
formula and/or, for certain participants, years of service and average
income over a specified period in the plan. Effective December 31, 2015,
primary liability for the obligations of AXA Equitable Life under the AXA
Equitable Life QP was transferred from AXA Equitable Life to AXA Financial,
and upon the merger of AXA Financial into Holdings, Holdings assumes primary
liability under terms of an Assumption Agreement. AXA Equitable Life remains
secondarily liable for its obligations under the AXA Equitable Life QP and
would recognize such liability in the event Holdings does not perform under
the terms of the Assumption Agreement.
The AXA Equitable QP is not governed by a collective-bargaining agreement
and is not under a financial improvement plan or a rehabilitation plan. For
the years ended December 31, 2018, 2017 and 2016, expenses related to the
plan were $60 million, $27 million and $31 million, respectively.
The following table presents the funded status of the plan.
AS OF DECEMBER 31,
------------------
2018 2017
-------- --------
(IN MILLIONS)
LEGAL NAME OF PLAN: AXQ EQUITABLE RETIREMENT PLAN EIN# 13-5570651
Total Plan Assets................................................ $ 1,993 $ 2,325
======== ========
Accumulated Benefit Obligation................................... $ 2,039 $ 2,389
======== ========
Funded Status.................................................... 97.8% 97.3%
|
In addition to the AXA Equitable QP, AXA Equitable Life sponsors a
non-qualified retirement plan, a medical and life retiree plan, and a post
employment plan. The expenses related to these plans were $70 million, $37
million and $44 million for the years ended December 31, 2018, 2017 and
2016, respectively.
14)SHARE-BASED COMPENSATION PROGRAMS
Compensation costs for 2018, 2017 and 2016 for share-based payment
arrangements as further described herein are as follows:
YEARS ENDED DECEMBER 31,
-----------------------------------
2018 2017 2016
----------- ----------- -----------
(IN MILLIONS)
Performance Shares/(1)/........................... $ 12 $ 18 $ 17
Stock Options..................................... 2 1 1
AXA Shareplan..................................... -- 9 14
Restricted Stock Unit Awards/(2)/................. 16 2 --
Other Compensation Plans/(3)/..................... -- -- 1
----------- ----------- -----------
Total Compensation Expenses....................... $ 30 $ 30 $ 33
=========== =========== ===========
|
/(1)/Reflects change to performance share retirement rules. Specifically,
individuals who retire at any time after the grant date will continue to
vest in their 2017 performance shares while individuals who retire prior
to March 1, 2019 will forfeit all 2018 performance shares.
/(2)/Reflects a $10 million adjustment for awards in 2018 with graded
vesting, service-only conditions from the graded to the straight-line
attribution method.
/(3)/Includes stock appreciation rights and employee stock purchase plans.
F-64
In 2017 and prior years, equity awards for employees and directors were
available under the umbrella of AXA's global equity program. Accordingly,
equity awards granted in 2017 and prior years were linked to AXA's stock.
Following the IPO, Holdings has granted equity awards under the AXA
Equitable Holdings, Inc. 2018 Omnibus Incentive Plan (the "Omnibus Plan")
which was adopted by Holdings on April 25, 2018. Awards under the Omnibus
Plan are linked to Holdings' common stock. As of December 31, 2018, the
common stock reserved and available for issuance under the Omnibus Plan was
5.5 million shares.
2018 Equity Awards
All 2018 equity awards for Company employees and directors were granted
under the Omnibus Plan. Accordingly, all grants discussed in this section
will be settled in shares of Holdings' common stock. As described below,
Holdings made various grants of equity awards linked to the value of
Holdings' common stock in 2018. For awards with graded vesting schedules and
service-only vesting conditions, including restricted stock units ("RSUs")
and other forms of share-based payment awards, the Company applies a
straight-line expense attribution policy for the recognition of compensation
cost. Actual forfeitures with respect to the 2018 grants were considered
immaterial in the recognition of compensation cost.
TRANSACTION INCENTIVE AWARDS
On May 9, 2018, coincident with the IPO, Holdings granted one-time
"Transaction Incentive Awards" to executive officers and certain other
Company employees in the form of 0.6 million Holdings RSUs. Fifty percent of
the Holdings RSUs will vest based on service over a two-year period from the
IPO date (the "Service Units"), and fifty percent will vest based on service
and a market condition (the "Performance Units"). The market condition is
based on share price growth of at least 130% or 150% within a two or
five-year period, respectively. If the market condition is not achieved, 50%
of the Performance Units may still vest based on five years of continued
service and the remaining Performance Units will be forfeited. The $6
million aggregate grant-date fair value of the 0.3 million Service Units was
measured at the $20 IPO price of a Holdings share and will be charged to
compensation expense over the stated requisite service periods.
The grant-date fair value of half of the Performance Units, or 0.2 million
Holdings RSUs, was also measured at the $20 IPO price for a Holdings share
as employees are still able to vest in these awards even if the share price
growth targets are not achieved. The resulting $3 million for these awards
will be charged to compensation expense over the five-year requisite service
period. The grant-date fair value of $16.47 was used to value the remaining
half of the Performance Units that are subject to risk of forfeiture for
non-achievement of the Holdings share price conditions. The grant date fair
value was measured using a Monte Carlo simulation from which
a five-year requisite service period was derived, representing the median of
the distribution of stock price paths on which the market condition is
satisfied, over which the total $3 million compensation expense will be
recognized. In 2018, the Company recognized compensation expense associated
with the Transaction Incentive Awards of approximately $6 million.
SPECIAL IPO GRANT
Also, on May 9, 2018, Holdings made a grant of 0.2 million Holdings RSUs to
Company employees , or 50 restricted stock units to each eligible
individual, that cliff vested on November 9, 2018. The grant-date fair value
of the award was measured using the $20 IPO price for a Holdings share and
the resulting $5 million has been recognized as compensation expense over
the six-month service period ending November 9, 2018.
ANNUAL AWARDS UNDER 2018 EQUITY PROGRAM
Annual awards under Holdings' 2018 equity program consisted of a mix of
equity vehicles including Holdings RSUs, Holdings stock options and Holdings
performance shares. If Holdings pays any ordinary dividend in cash, all
outstanding Holdings RSUs and performance shares will accrue dividend
equivalents in the form of additional Holdings RSUs or performance shares to
be settled or forfeited consistent with the terms of the related award.
Holdings RSUs
On May 17, 2018, Holdings granted 0.8 million Holdings RSUs to Company
employees that vest ratably in equal annual installments over a three-year
period on each of the first three anniversaries of March 1, 2018. The fair
value of the award was measured using the closing price of the Holdings
share on the grant date, and the resulting $18 million will be recognized as
compensation expense over the shorter of the vesting term or the period up
to the date at which the participant becomes retirement eligible but not
prior to March 1, 2019.
F-65
Holdings Stock Options
On June 11, 2018, Holdings granted 0.9 million Holdings stock options to
Company employees. These options expire on March 1, 2028 and have
a three-year graded vesting schedule, with one-third vesting on each of
the three anniversaries of March 1, 2018. The exercise price for the options
is $21.34, which was the closing price of a Holdings share on the grant
date. The weighted average grant date fair value per option was estimated
at $4.61 using a Black-Scholes options pricing model. Key assumptions used
in the valuation included expected volatility of 25.4% based on historical
selected peer data, a weighted average expected term of 5.7 years as
determined by the simplified method, an expected dividend yield of 2.44%
based on Holdings' expected annualized dividend, and a risk-free interest
rate of 2.83%. The total fair value of these options of approximately $4
million will be charged to expense over the shorter of the vesting period or
the period up to the date at which the participant becomes retirement
eligible but not prior to March 1, 2019. In 2018, the Company recognized
expense associated with the June 11, 2018 option grant of approximately $2
million.
Holdings Performance Shares
On May 17, 2018, Holdings granted 0.4 million unearned Holdings performance
shares to Company employees, subject to performance conditions and a
cliff-vesting term ending March 1, 2021. The performance shares consist of
two distinct tranches; one based on the Company's return-on-equity targets
(the "ROE Performance Shares") and the other based on the Holdings' relative
total shareholder return targets (the "TSR Performance Shares"), each
comprising approximately one-half of the award. Participants may receive
from 0% to 200% of the unearned performance shares granted. The grant-date
fair value of the ROE Performance Shares will be established once the 2019
and 2020 Non-GAAP ROE target are determined and approved.
The grant-date fair value of the TSR Performance Shares was measured
at $23.17 using a Monte Carlo approach. Under the Monte Carlo approach,
stock returns were simulated for Holdings and the selected peer companies to
estimate the payout percentages established by the conditions of the award.
The resulting $4 million aggregate grant-date fair value of the unearned TSR
Performance Shares will be recognized as compensation expense over the
shorter of the cliff-vesting period or the period up to the date at which
the participant becomes retirement eligible but not prior to March 1, 2019.
In 2018, the Company recognized expense associated with the TSR Performance
Share awards of approximately $2 million.
Prior Equity Award Grants and Settlements
Prior to adoption of the Omnibus Plan, Company employees were granted AXA
ordinary share options under the AXA Stock Option Plan for AXA Financial
Employees and Associates (the "Stock Option Plan"). There is no limitation
in the Stock Option Plan on the number of shares that may be issued pursuant
to option or other grants.
Employees were also granted AXA performance shares under the AXA
International Performance Shares Plan established for each year (the
"Performance Share Plan").
The fair values of these prior awards are measured at the grant date by
reference to the closing price of the AXA ordinary share, and the result, as
adjusted for achievement of performance targets and pre-vesting forfeitures,
generally is attributed over the shorter of the requisite service period,
the performance period, if any, or to the date at which retirement
eligibility is achieved and subsequent service no longer is required for
continued vesting of the award.
2017 PERFORMANCE SHARES GRANT
On June 21, 2017, under the terms of the Performance Share Plan, AXA awarded
approximately 1.7 million unearned performance shares to Company employees.
The extent to which 2017-2019 cumulative performance targets measuring the
performance of AXA and the Company are achieved will determine the number of
performance shares earned, which may vary between 0% and 130% of the number
of performance shares at stake. The performance shares earned during this
performance period will vest and be settled on the fourth anniversary of the
award date. The plan will settle in AXA ordinary shares to all participants.
In 2018 and 2017, the expense associated with the June 21, 2017 grant of
performance shares was approximately $4 million and $9 million, respectively.
2016 PERFORMANCE SHARES GRANT
On June 6, 2016, under the terms of the Performance Share Plan, AXA awarded
approximately 1.9 million unearned performance shares to Company employees
of AXA Equitable. The extent to which 2017-2019 cumulative performance
targets measuring the performance of AXA and the Company are achieved will
determine the number of performance shares earned, which may vary between 0%
and 130% of the number of performance shares at stake. The performance
shares earned during this performance period will vest and be settled on the
fourth anniversary of the award date. The plan will settle in AXA ordinary
shares to all participants. In 2018, 2017 and 2016, the expense associated
with the June 6, 2016 grant of performance shares was approximately $4
million, $4 million and $10 million, respectively.
F-66
SETTLEMENT OF 2014 GRANT IN 2017
On March 24, 2017, share distributions totaling of approximately $21 million
were made to active and former AXA Equitable employees in settlement of
2.3 million performance shares earned under the terms of the AXA Performance
Share Plan 2014.
OTHER GRANTS
Prior to the IPO, non-officer directors were granted restricted AXA ordinary
shares (prior to 2011, AXA ADRs) and unrestricted AXA ordinary shares (prior
to March 15, 2010, AXA ADRs) annually under The Equity Plan for Directors.
AXA restricted stock units ("AXA RSUs") were also granted to certain Company
executives. The AXA RSUs are phantom AXA ordinary shares that, once vested,
entitle the recipient to a cash payment based on the average closing price
of the AXA ordinary share over the twenty trading days immediately preceding
the vesting date.
Summary of Stock Option Activity
A summary of activity in the AXA and Holdings option plans during 2018
follows:
OPTIONS OUTSTANDING
-------------------------------------------------------------------------
EQH SHARES AXA ORDINARY SHARES AXA ADRS/(2)/
---------------------- --------------------------- ----------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER AVERAGE NUMBER AVERAGE NUMBER AVERAGE
OUTSTANDING EXERCISE OUTSTANDING EXERCISE OUTSTANDING EXERCISE
(IN 000'S) PRICE (IN 000'S) PRICE (IN 000'S) PRICE
----------- --------- ----------- -------------- ----------- ---------
Options Outstanding at January 1, 2018....... -- $ -- 3,653 (EURO) 17.36 20 $ 20.98
Options granted.............................. 869 $ 21.34 -- (EURO) -- -- $ --
Options exercised............................ -- $ -- (337) (EURO) 11.80 -- $ --
Options forfeited, net....................... (35) $ 21.34 -- (EURO) -- -- $ --
Options expired.............................. -- $ -- (707) (EURO) 17.45 (5) $ 35.25
----------- ----------- -----------
Options Outstanding at December 31, 2018..... 834 $ 21.34 2,609 (EURO) 18.20 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 2,383 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. 9.16 4.50 0.58
=========== =========== ===========
Options Exercisable at December 31, 2018..... -- $ -- 1,369 (EURO) 15.27 15 $ 15.37
=========== ========= =========== ============== =========== =========
Aggregate Intrinsic Value/(1)/............... $ -- (EURO) 7,698 $ 151
========= ============== =========
Weighted Average Remaining Contractual Term
(in years)................................. -- 2.45 0.58
=========== =========== ===========
|
/(1)/Aggregate intrinsic value, presented in thousands, is calculated as the
excess of the closing market price on December 31, 2018 of the
respective underlying shares over the strike prices of the option
awards. For awards with strike prices higher then market prices,
intrinsic value is shown as zero.
/(2)/AXA ordinary shares will be delivered to participants in lieu of AXA
ADRs at exercise or maturity.
F-67
For the purpose of estimating the fair value of stock option awards, the
Company applies the Black-Scholes model and attributes the result over the
requisite service period using the graded-vesting method. A Monte-Carlo
simulation approach was used to model the fair value of the conditional
vesting feature of the awards of options to purchase Holdings and AXA
ordinary shares. Shown below are the relevant input assumptions used to
derive the fair values of options awarded in 2018, 2017 and 2016,
respectively.
EQH Shares AXA Ordinary Shares/(1)/
------------ ------------------------
2018 2018 2017 2016
------------ ---- -------- ---------
Dividend yield............................... 2.44% NA 6.53% 6.49%
Expected volatility.......................... 25.40% NA 25.05% 26.6%
Risk-free interest rates..................... 2.83% NA 0.59% 0.33%
Expected life in years....................... 9.7 NA 8.8 8.1
Weighted average fair value per option at
grant date................................. $ 4.61 NA $ 2.01 $ 2.06
|
/(1)/There were no options to buy AXA Ordinary Shares awarded during 2018. As
such, the input assumptions for 2018 are not applicable.
As of December 31, 2018, approximately $1 million of unrecognized
compensation cost related to unvested stock option awards, net of estimated
pre-vesting forfeitures, is expected to be recognized by the Company over a
weighted average period of 2.2 years. As of December 31, 2018, approximately
$3 million of unrecognized compensation cost related to Holdings unvested
stock option awards, net of estimated pre-vesting forfeitures, is expected
to be recognized by the Company over a weighted average period of 0.8 years.
Options
The fair value of AXA stock options is calculated using the Black-Scholes
option pricing model. The expected AXA dividend yield is based on market
consensus. AXA share price volatility is estimated on the basis of implied
volatility, which is checked against an analysis of historical volatility to
ensure consistency. The risk-free interest rate is based on the Euro Swap
Rate curve for the appropriate term. The effect of expected early exercise
is taken into account through the use of an expected life assumption based
on historical data.
Restricted Awards
The market price of a Holdings share is used as the basis for the fair value
measure of a Holdings RSU. For purposes of determining compensation cost for
stock-settled Holdings RSUs, fair value is fixed at the grant date until
settlement, absent modification to the terms of the award.
For 2018, 2017 and 2016, respectively, the Company recognized compensation
costs of $16 million, $2 million and $0 million for outstanding restricted
stock and AXA RSUs. The fair values of awards made under these programs are
measured at the grant date by reference to the closing price of the
unrestricted shares, and the result generally is attributed over the shorter
of the requisite service period, the performance period, if any, or to the
date at which retirement eligibility is achieved and subsequent service no
longer is required for continued vesting of the award. Remeasurements of
fair value for subsequent price changes until settlement are made only for
AXA RSUs. At December 31, 2018, approximately 2.3 million restricted
Holdings and AXA ordinary share awards remain unvested. Unrecognized
compensation cost related to these awards totaled approximately $19 million,
net of estimated pre-vesting forfeitures, and is expected to be recognized
over a weighted average period of 1.2 years.
The following table summarizes restricted Holdings share and AXA ordinary
share activity for 2018.
WEIGHTED WEIGHTED
SHARES OF HOLDINGS AVERAGE SHARES OF AXA AVERAGE
RESTRICTED STOCK GRANT DATE RESTRICTED STOCK GRANT DATE
(IN THOUSANDS) FAIR VALUE (IN THOUSANDS) FAIR VALUE
------------------ ------------- ---------------- ---------------
Unvested as of January 1, 2018............... -- $ -- 84 $ 21.07
Granted...................................... 1,696 $ 20.83 -- $ --
Cancelled.................................... 56 $ 21.21 -- $ 26.64
Vested....................................... 381 $ 21.09 36 $ 21.99
------------------ ------------- --------------- ---------------
Unvested as of December 31, 2018............. 1,259 $ 21.00 48 $ 20.38
================== ============= =============== ===============
|
Employee Stock Purchase Plans
AXA SHAREPLAN 2017
In 2017, eligible employees of AXA Equitable were offered the opportunity to
purchase newly issued AXA ordinary shares, subject to plan limits, under the
terms of AXA Shareplan, AXA's annual global stock purchase plan. Eligible
employees could have reserved a share purchase during the reservation period
from August 28, 2017 through September 8, 2017 and could have canceled their
reservation or elected to
F-68
make a purchase for the first time during the retraction/subscription period
from October 13, 2017 through October 17, 2017. The U.S. dollar purchase
price was determined by applying the U.S. dollar/Euro forward exchange rate
on October 11, 2017 to the discounted formula subscription price in Euros.
Investment Option A permitted participants to purchase AXA ordinary shares
at a 20% formula discounted price of (Euro)20.19 per share. Investment
Option B permitted participants to purchase AXA ordinary shares at an 8.98%
formula discounted price of (Euro)22.96 per share on a leveraged basis with
a guaranteed return of initial investment plus a portion of any appreciation
in the undiscounted value of the total shares purchased. For purposes of
determining the amount of any appreciation, the AXA ordinary share price
will be measured over a fifty-two week period preceding the scheduled end
date of AXA Shareplan 2018, which is July 1, 2022. All subscriptions became
binding and irrevocable on October 17, 2017.
The Company recognized compensation expense of $9 million and $14 million in
the years ended December 31, 2017 and 2016 respectively, in connection with
each respective year's offering of AXA stock under the AXA Shareplan,
representing the aggregate discount provided to AXA Equitable participants
for their purchase of AXA stock under each of those plans, as adjusted for
the post-vesting, five-year holding period. AXA Equitable participants in
AXA Shareplan 2017 and 2016 primarily invested under Investment Option B for
the purchase of approximately of 4 million and 6 million AXA ordinary
shares, respectively.
HOLDINGS STOCK PURCHASE PLAN
During 2018, Holdings introduced the AXA Equitable Holdings, Inc. Stock
Purchase Program ("SPP"). Participants are able to contribute up to 100% of
their eligible compensation and receive a matching contribution in cash
equal to 15% of their payroll contribution, which will be used to purchase
Holdings shares. Purchases will be made on the last trading day of each
month at the prevailing market rate.
15)INCOME TAXES
A summary of the income tax (expense) benefit in the consolidated statements
of income (loss) follows:
YEARS ENDED DECEMBER 31,
-----------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Income tax (expense) benefit:
Current (expense) benefit........................... $ 234 $ (6) $ (274)
Deferred (expense) benefit.......................... 212 1,216 438
------ -------- ------
Total................................................. $ 446 $ 1,210 $ 164
====== ======== ======
|
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
income taxes and noncontrolling interest by the expected Federal income tax
rate of 21%, 35% and 35% for 2018, 2017 and 2016, respectively. The sources
of the difference and their tax effects are as follows:
YEARS ENDED DECEMBER 31,
------------------------
2018 2017 2016
------ -------- ------
(IN MILLIONS)
Expected income tax (expense) benefit................ $ 311 $ (542) $ 14
Noncontrolling interest.............................. (1) -- --
Non-taxable investment income (loss)................. 104 241 173
Tax audit interest................................... (11) (6) (14)
State income taxes................................... (1) (3) (6)
Tax settlements/uncertain tax position release....... -- 221 --
Change in tax law.................................... 46 1,308 --
Other................................................ (2) (9) (3)
------ -------- ------
Income tax (expense) benefit......................... $ 446 $ 1,210 $ 164
====== ======== ======
|
The Tax Cuts and Jobs Act (the "Tax Reform Act") was enacted on December 22,
2017. The SEC issued Staff Accounting Bulletin No. 118 ("SAB 118") to
address the application of U.S. GAAP in situations where a company does not
have the necessary information available to complete its accounting for
certain income tax effects of the Tax Reform Act. In accordance with SAB
118, the Company determined reasonable estimates for certain effects of the
Tax Reform Act and recorded those estimates as provisional amounts in the
2017 financial statements. The accounting for the income tax effects of the
Tax Reform Act has been completed.
F-69
The components of change in tax law are as follows:
. An income tax expense of $4 million from the revaluation of deferred tax
assets and liabilities that existed at the time of enactment. The
calculation of cumulative temporary differences has been refined.
. An income tax expense of $13 million related to the decrease in federal
tax benefit allowable for audit interest as a result of lower corporate
tax rates.
. An income tax benefit of $20 million to reverse the sequestration fee
applied to a portion of accumulated minimum tax credits in the 2017
financial statements. The Internal Revenue Service has since clarified
that refundable minimum tax credits are not subject to sequestration.
. During the fourth quarter of 2018, the Company adopted the Internal
Revenue Service's directive related to the calculation of tax reserves
for variable annuity contracts. As a result of adoption of the
directive, the Company released audit interest accrued for uncertainties
in the calculation of variable annuity tax reserves. The impact on the
Company's financial statements was a benefit of $43 million.
During the second quarter of 2017, the Company agreed to the Internal
Revenue Service's Revenue Agent's Report for its consolidated 2008 and 2009
Federal corporate income tax returns. The impact on the Company's financial
statements and unrecognized tax benefits was a tax benefit of $221 million.
The components of the net deferred income taxes are as follows:
AS OF DECEMBER 31,
-------------------------------------------------------
2018 2017
------------------------- -----------------------------
ASSETS LIABILITIES Assets Liabilities
----------- ------------- ------------- ---------------
(IN MILLIONS)
Compensation and related benefits...................... $ 47 $ -- $ 47 $ --
Net operating loss..................................... 239 -- -- --
Reserves and reinsurance............................... -- 32 -- 83
DAC.................................................... -- 864 -- 821
Unrealized investment gains (losses)................... 123 -- -- 298
Investments............................................ 670 -- -- 997
Tax credits............................................ 314 -- 387 --
Other.................................................. 14 -- 67 --
----------- ------------- ------------- ---------------
Total.................................................. $ 1,407 $ 896 $ 501 $ 2,199
=========== ============= ============= ===============
|
The Company had $314 million and $387 million of AMT credits for the years
ended December 31, 2018 and 2017, respectively, which are expected to be
refunded or utilized against future taxable income.
A reconciliation of unrecognized tax benefits (excluding interest and
penalties) follows:
YEARS ENDED DECEMBER 31,
----------------------------------
2018 2017 2016
---------- ---------- ----------
(IN MILLIONS)
Balance at January 1,.......................... $ 205 $ 444 $ 406
Additions for tax positions of prior years..... 98 28 38
Reductions for tax positions of prior years.... (30) (234) --
Settlements with tax authorities............... -- (33) --
---------- ---------- ----------
Balance at December 31,........................ $ 273 $ 205 $ 444
========== ========== ==========
Unrecognized tax benefits that, if recognized,
would impact the effective rate.............. $ 202 $ 172 $ 329
========== ========== ==========
|
The Company recognizes accrued interest and penalties related to
unrecognized tax benefits in tax expense. Interest and penalties included in
the amounts of unrecognized tax benefits at December 31, 2018 and 2017 were
$41 million and $23 million, respectively. For 2018, 2017 and 2016,
respectively, there were $18 million, $(44) million and $15 million in
interest expense (benefit) related to unrecognized tax benefits.
It is reasonably possible that the total amount of unrecognized tax benefits
will change within the next 12 months due to the conclusion of IRS
proceedings and the addition of new issues for open tax years. The possible
change in the amount of unrecognized tax benefits cannot be estimated at
this time.
As of December 31, 2018, tax years 2010 and subsequent remain subject to
examination by the IRS.
F-70
16)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
AOCI represents cumulative gains (losses) on items that are not reflected in
income (loss). The balances for the past three years follow:
DECEMBER 31,
-------------------------------
2018 2017 2016
---------- --------- --------
(IN MILLIONS)
Unrealized gains (losses) on investments/(1)/ $ (484) $ 581 $ (44)
Defined benefit pension plans/(2)/........... (7) (51) (46)
---------- --------- --------
Total accumulated other comprehensive income
(loss) from continuing operations.......... (491) 530 (90)
---------- --------- --------
Less: Accumulated other comprehensive
(income) loss attributable to
non-controlling interest................... -- 68 86
---------- --------- --------
Accumulated other comprehensive income
(loss) attributable to AXA Equitable....... $ (491) $ 598 $ (4)
========== ========= ========
|
/(1)/2018 includes a $86 million decrease to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
/(2)/2018 includes a $3 million increase to Accumulated other comprehensive
loss from the impact of adoption of ASU 2018-02.
The components of OCI for the years ended December 31, 2018, 2017 and 2016,
net of tax, follow:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
---------- -------- ---------
(IN MILLIONS)
Change in net unrealized gains (losses)
on investments:
Net unrealized gains (losses) arising during
the year..................................... $ (1,663) $ 782 $ (178)
(Gains) losses reclassified into net income
(loss) during the year/(1)/.................. (4) 8 2
---------- -------- ---------
Net unrealized gains (losses) on investments.... (1,667) 790 (176)
Adjustments for policyholders' liabilities,
DAC, insurance liability loss recognition
and other..................................... 437 (165) (57)
---------- -------- ---------
Change in unrealized gains (losses), net of
adjustments (net of deferred income tax
expense (benefit) of $(310), $244, and $(97)). (1,230) 625 (233)
---------- -------- ---------
Change in defined benefit plans:
Less: Reclassification adjustments to Net
income (loss) for:/(2)/
Amortization of net (gains) losses included
in net periodic cost....................... (4) (5) (3)
---------- -------- ---------
Change in defined benefit plans (net of
deferred income tax expense (benefit) of $0,
$(2) and $(2))................................ (4) (5) (3)
---------- -------- ---------
Total other comprehensive income (loss), net of
income taxes from continuing operations....... (1,234) 620 (236)
Other comprehensive income (loss) from
discontinued operations, net of income taxes.. -- (18) 17
---------- -------- ---------
Other comprehensive income (loss) attributable
to AXA Equitable.............................. $ (1,234) $ 602 $ (219)
========== ======== =========
|
/(1)/See "Reclassification adjustments" in Note 3. Reclassification amounts
presented net of income tax expense (benefit) of $(1) million, $(5)
million and $(1) million for the years ended December 31, 2018, 2017 and
2016, respectively.
/(2)/These AOCI components are included in the computation of net periodic
costs (see "Employee Benefit Plans" in Note 13). Reclassification
amounts presented net of income tax expense (benefit) of $0 million, $2
million and $2 million for the years ended December 31, 2018, 2017 and
2016, respectively.
Investment gains and losses reclassified from AOCI to net income (loss)
primarily consist of realized gains (losses) on sales and OTTI of AFS
securities and are included in Total investment gains (losses), net on the
consolidated statements of income (loss). Amounts reclassified from AOCI to
Net income (loss) as related to defined benefit plans primarily consist of
amortizations of net (gains) losses and net prior service cost (credit)
recognized as a component of net periodic cost and reported in Compensation
and benefit expenses in the consolidated statements of income (loss).
Amounts presented in the table above are net of tax.
F-71
17)COMMITMENTS AND CONTINGENT LIABILITIES
Litigation
Litigation, regulatory and other loss contingencies arise in the ordinary
course of the Company's activities as a diversified financial services firm.
The Company is a defendant in a number of litigation matters arising from
the conduct of its business. In some of these matters, claimants seek to
recover very large or indeterminate amounts, including compensatory,
punitive, treble and exemplary damages. Modern pleading practice in the U.S.
permits considerable variation in the assertion of monetary damages and
other relief. Claimants are not always required to specify the monetary
damages they seek or they may be required only to state an amount sufficient
to meet a court's jurisdictional requirements. Moreover, some jurisdictions
allow claimants to allege monetary damages that far exceed any reasonably
possible verdict. The variability in pleading requirements and past
experience demonstrates that the monetary and other relief that may be
requested in a lawsuit or claim often bears little relevance to the merits
or potential value of a claim. Litigation against the Company includes a
variety of claims including, among other things, insurers' sales practices,
alleged agent misconduct, alleged failure to properly supervise agents,
contract administration, product design, features and accompanying
disclosure, cost of insurance increases, the use of captive reinsurers,
payments of death benefits and the reporting and escheatment of unclaimed
property, alleged breach of fiduciary duties, alleged mismanagement of
client funds and other matters.
As with other financial services companies, the Company periodically
receives informal and formal requests for information from various state and
federal governmental agencies and self-regulatory organizations in
connection with inquiries and investigations of the products and practices
of the Company or the financial services industry. It is the practice of the
Company to cooperate fully in these matters.
The outcome of a litigation or regulatory matter is difficult to predict and
the amount or range of potential losses associated with these or other loss
contingencies requires significant management judgment. It is not possible
to predict the ultimate outcome or to provide reasonably possible losses or
ranges of losses for all pending regulatory matters, litigation and other
loss contingencies. While it is possible that an adverse outcome in certain
cases could have a material adverse effect upon the Company's financial
position, based on information currently known, management believes that
neither the outcome of pending litigation and regulatory matters, nor
potential liabilities associated with other loss contingencies, are likely
to have such an effect. However, given the large and indeterminate amounts
sought in certain litigation and the inherent unpredictability of all such
matters, it is possible that an adverse outcome in certain of the Company's
litigation or regulatory matters, or liabilities arising from other loss
contingencies, could, from time to time, have a material adverse effect upon
the Company's results of operations or cash flows in a particular quarterly
or annual period.
For some matters, the Company is able to estimate a possible range of loss.
For such matters in which a loss is probable, an accrual has been made. For
matters where the Company, however, believes a loss is reasonably possible,
but not probable, no accrual is required. For matters for which an accrual
has been made, but there remains a reasonably possible range of loss in
excess of the amounts accrued or for matters where no accrual is required,
the Company develops an estimate of the unaccrued amounts of the reasonably
possible range of losses. As of December 31, 2018, the Company estimates the
aggregate range of reasonably possible losses, in excess of any amounts
accrued for these matters as of such date to be up to approximately $95
million.
For other matters, the Company is currently not able to estimate the
reasonably possible loss or range of loss. The Company is often unable to
estimate the possible loss or range of loss until developments in such
matters have provided sufficient information to support an assessment of the
range of possible loss, such as quantification of a damage demand from
plaintiffs, discovery from plaintiffs and other parties, investigation of
factual allegations, rulings by a court on motions or appeals, analysis by
experts and the progress of settlement discussions. On a quarterly and
annual basis, the Company reviews relevant information with respect to
litigation and regulatory contingencies and updates the Company's accruals,
disclosures and reasonably possible losses or ranges of loss based on such
reviews.
In August 2015, a lawsuit was filed in Connecticut Superior Court, Judicial
Division of New Haven entitled Richard T. O'Donnell, on behalf of himself
and all others similarly situated v. AXA Equitable Life Insurance Company.
This lawsuit is a putative class action on behalf of all persons who
purchased variable annuities from AXA Equitable, which were subsequently
subjected to the volatility management strategy and who suffered injury as a
result thereof. Plaintiff asserts a claim for breach of contract alleging
that AXA Equitable Life implemented the volatility management strategy in
violation of applicable law. In November 2015, the Connecticut Federal
District Court transferred this action to the United States District Court
for the Southern District of New York. In March 2017, the Southern District
of New York granted AXA Equitable Life's motion to dismiss the complaint. In
April 2017, the plaintiff filed a notice of appeal. In April 2018, the
United States Court of Appeals for the Second Circuit reversed the trial
court's decision with instructions to remand the case to Connecticut state
court. In September 2018, the Second Circuit issued its mandate, following
AXA Equitable Life's notification to the court that it would not file a
petition for writ of certiorari. The case was transferred in December 2018
and is pending in Connecticut Superior Court, Judicial District of Stamford.
We are vigorously defending this matter.
In February 2016, a lawsuit was filed in the United States District Court
for the Southern District of New York entitled Brach Family Foundation, Inc.
v. AXA Equitable Life Insurance Company. This lawsuit is a putative class
action brought on behalf of all owners of universal life ("UL") policies
subject to AXA Equitable Life's COI rate increase. In early 2016, AXA
Equitable Life raised COI rates for certain UL policies issued
F-72
between 2004 and 2007, which had both issue ages 70 and above and a current
face value amount of $1 million and above. A second putative class action
was filed in Arizona in 2017 and consolidated with the Brach matter. The
current consolidated amended class action complaint alleges the following
claims: breach of contract; misrepresentations by AXA Equitable Life in
violation of Section 4226 of the New York Insurance Law; violations of New
York General Business Law Section 349; and violations of the California
Unfair Competition Law, and the California Elder Abuse Statute. Plaintiffs
seek; (a) compensatory damages, costs, and, pre- and post-judgment interest;
(b) with respect to their claim concerning Section 4226, a penalty in the
amount of premiums paid by the plaintiffs and the putative class; and
(c) injunctive relief and attorneys' fees in connection with their statutory
claims. Five other federal actions challenging the COI rate increase are
also pending against AXA Equitable and have been coordinated with the Brach
action for the purposes of pre-trial activities. They contain allegations
similar to those in the Brach action as well as additional allegations for
violations of various states' consumer protection statutes and common law
fraud. Two actions are also pending against AXA Equitable in New York state
court. AXA Equitable is vigorously defending each of these matters.
Leases
The Company has entered into operating leases for office space and certain
other assets, principally information technology equipment and office
furniture and equipment. Future minimum payments under non-cancelable
operating leases for 2019 and the four successive years are $81 million, $74
million, $69 million, $67 million, $63 million and $66 million thereafter.
Minimum future sublease rental income on these non-cancelable operating
leases for 2019 and the four successive years is $12 million, $12 million,
$12 million, $12 million, $12 million and $0 million thereafter.
Rent expense, which is amortized on a straight-line basis over the life of
the lease, was $82 million, $78 million, $72 million, respectively, for the
years ended December 31, 2018, 2017 and 2016, net of sublease income of $12
million, $16 million, $13 million, respectively, for the years ended
December 31, 2018, 2017 and 2016.
Obligations under Funding Agreements
Entering into FHLBNY membership, borrowings and funding agreements requires
the ownership of FHLBNY stock and the pledge of assets as collateral. AXA
Equitable has purchased FHLBNY stock of $190 million and pledged collateral
with a carrying value of $6.1 billion, as of December 31, 2018. AXA
Equitable issues short-term funding agreements to the FHLBNY and uses the
funds for asset liability and cash management purposes. AXA Equitable issues
long-term funding agreements to the FHLBNY and uses the funds for spread
lending purposes. Funding agreements are reported in Policyholders' account
balances in the consolidated balance sheets. For other instruments used for
asset/liability and cash management purposes, see "Derivative and offsetting
assets and liabilities" included in Note 3. The table below summarizes the
Company's activity of funding agreements with the FHLBNY.
OUTSTANDING REPAID
BALANCE AT END MATURITY OF ISSUED DURING DURING THE
OF PERIOD OUTSTANDING BALANCE THE PERIOD PERIOD
-------------- ------------------------ ------------- ----------
(IN MILLIONS)
DECEMBER 31, 2018:
Short-term FHLBNY funding agreements......... $ 1,490 Less than one month $ 7,980 $ 6,990
Long-term FHLBNY funding agreements.......... 1,621 Less than four years -- --
98 Less than five years -- --
781 Greater than five years -- --
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 -- --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2018/(1)/..................... $ 3,990 $ 7,980 $ 6,990
============== ============= ==========
December 31, 2017:
Short-term FHLBNY funding agreements......... $ 500 Less than one month $ 6,000 $ 6,000
Long-term FHLBNY funding agreements.......... 1,244 Less than four years 324
377 Less than five years 303
879 Greater than five years 135
-------------- ------------- ----------
Total long-term funding agreements........... 2,500 762 $ --
-------------- ------------- ----------
Total FHLBNY funding agreements at
December 31, 2017/(1)/..................... $ 3,000 $ 6,762 $ 6,000
============== ============= ==========
|
/(1)/The $11 million and $14 million difference between the funding
agreements carrying value shown in fair value table for 2018 and 2017,
respectively, reflects the remaining amortization of a hedge implemented
and closed, which locked in the funding agreements borrowing rates.
F-73
Guarantees and Other Commitments
The Company provides certain guarantees or commitments to affiliates and
others. At December 31, 2018, these arrangements include commitments by the
Company to provide equity financing of $927 million (including $280 million
with affiliates and $12 million on consolidated VIEs) to certain limited
partnerships and real estate joint ventures under certain conditions.
Management believes the Company will not incur material losses as a result
of these commitments.
AXA Equitable is the obligor under certain structured settlement agreements
it had entered into with unaffiliated insurance companies and beneficiaries.
To satisfy its obligations under these agreements, AXA Equitable owns single
premium annuities issued by previously wholly owned life insurance
subsidiaries. AXA Equitable has directed payment under these annuities to be
made directly to the beneficiaries under the structured settlement
agreements. A contingent liability exists with respect to these agreements
should the previously wholly owned subsidiaries be unable to meet their
obligations. Management believes the need for AXA Equitable to satisfy those
obligations is remote.
The Company had $18 million of undrawn letters of credit related to
reinsurance at December 31, 2018. The Company had $606 million of
commitments under existing mortgage loan agreements at December 31, 2018.
Pursuant to certain assumption agreements (the "Assumption Agreements"), AXA
Financial legally assumed primary liability from AXA Equitable for all
current and future liabilities of AXA Equitable under certain employee
benefit plans that provide participants with medical, life insurance and
deferred compensation benefits as well as under the AXA Equitable Retirement
plan, a frozen qualified pension plan. AXA Equitable remains secondarily
liable for its obligations under these plans and would recognize such
liabilities in the event AXA Financial does not perform under the terms of
the Assumption Agreements. On October 1, 2018, AXA Financial merged with and
into its direct parent, Holdings, with Holdings continuing as the surviving
entity. See Note 1 for further information.
18)INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
For 2018, 2017 and 2016, respectively, AXA Equitable's statutory net income
(loss) totaled $3,120 million, $748 million and $679 million. Statutory
surplus, Capital stock and Asset Valuation Reserve ("AVR") totaled $7.9
billion and $8.7 billion at December 31, 2018 and 2017, respectively. At
December 31, 2018, AXA Equitable, in accordance with various government and
state regulations, had $55 million of securities on deposit with such
government or state agencies.
In 2018, AXA Equitable Life paid to its direct parent which subsequently
distributed such amount to Holdings an ordinary shareholder dividend of $1.1
billion. Also in 2018, AXA Equitable Life transferred its interests in ABLP,
AB Holding and the General Partner to Alpha Units Holdings, Inc., a newly
formed subsidiary, and distributed the shares of that subsidiary to its
direct parent which subsequently distributed such shares to Holdings (the
"AB Ownership Transfer"). The AB Ownership transfer was considered an
extraordinary dividend of $1.7 billion representing the equity value of
Alpha Units Holdings, Inc. In connection with the AB Ownership Transfer, AXA
Equitable Life paid an extraordinary cash dividend of $572 million and
issued a surplus note to Holdings in the same amount. The surplus note was
repaid on March 5, 2019.
In 2017, AXA Equitable Life did not pay shareholder dividends and in 2016,
AXA Equitable paid $1.1 billion in shareholder dividends.
Dividend Restrictions
As a domestic insurance subsidiary regulated by the insurance laws of New
York State, AXA Equitable Life, is subject to restrictions as to the amounts
permitted to be paid as dividends and the amounts of any outstanding surplus
notes permitted to be repaid to Holdings.
New York State insurance law provides that a stock life insurer may not,
without prior approval of the New York State Department of Financial
Services ("NYDFS"), pay a dividend to its stockholders exceeding an amount
calculated under one of two standards (the "Standards"). The first standard
allows payment of an ordinary dividend out of the insurer's earned surplus
(as reported on the insurer's most recent annual statement) up to a limit
calculated pursuant to a statutory formula, provided that the NYDFS is given
notice and opportunity to disapprove the dividend if certain qualitative
tests are not met (the "Earned Surplus Standard"). The second standard
allows payment of an ordinary dividend up to a limit calculated pursuant to
a different statutory formula without regard to the insurer's earned
surplus. Dividends exceeding these prescribed limits require the insurer to
file a notice of its intent to declare the dividends with the NYDFS and
prior approval or non-disapproval from the NYDFS.
In applying the Standards, AXA Equitable Life could pay ordinary dividends
up to approximately $1.0 billion during 2019 or, if the amount under the
Earned Surplus Standard was limited to the amount of AXA Equitable Life's
positive unassigned funds as reported on its 2019 annual statement, $2.1
billion. However, in connection with the AB Ownership Transfer, AXA
Equitable Life agreed with the NYDFS that it would not seek a dividend of
greater than $1.0 billion under the Earned Surplus Standard during 2019.
F-74
Prescribed and Permitted Accounting Practices
At December 31, 2018 and for the year then ended, there were no differences
in net income (loss) and capital and surplus resulting from practices
prescribed and permitted by NYDFS and those prescribed by NAIC Accounting
Practices and Procedures effective at December 31, 2018.
The Company cedes a portion of their statutory reserves to EQ AZ Life Re, a
captive reinsurer, as part of the Company's capital management strategy. EQ
AZ Life Re prepares financial statements in a special purpose framework for
statutory reporting.
Differences between Statutory Accounting Principles and U.S. GAAP
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from U.S. GAAP. The differences between statutory surplus and
capital stock determined in accordance with Statutory Accounting Principles
("SAP") and total equity under GAAP are primarily: (a) the inclusion in SAP
of an AVR intended to stabilize surplus from fluctuations in the value of
the investment portfolio; (b) future policy benefits and policyholders'
account balances under SAP differ from U.S. GAAP due to differences between
actuarial assumptions and reserving methodologies; (c) certain policy
acquisition costs are expensed under SAP but deferred under U.S. GAAP and
amortized over future periods to achieve a matching of revenues and
expenses; (d) under SAP, Federal income taxes are provided on the basis of
amounts currently payable with limited recognition of deferred tax assets
while under U.S. GAAP, deferred taxes are recorded for temporary differences
between the financial statements and tax basis of assets and liabilities
where the probability of realization is reasonably assured; (e) the
valuation of assets under SAP and U.S. GAAP differ due to different
investment valuation and depreciation methodologies, as well as the deferral
of interest-related realized capital gains and losses on fixed income
investments; (f) the valuation of the investment in AB and AB Holding under
SAP reflected a portion of the market value appreciation rather than the
equity in the underlying net assets as required under U.S. GAAP;
(g) reporting the surplus notes as a component of surplus in SAP but as a
liability in U.S. GAAP; (h) computer software development costs are
capitalized under U.S. GAAP but expensed under SAP; (i) certain assets,
primarily prepaid assets, are not admissible under SAP but are admissible
under U.S. GAAP, (j) the fair valuing of all acquired assets and liabilities
including intangible assets are required for U.S. GAAP purchase accounting
and (k) cost of reinsurance which is recognized as expense under SAP and
amortized over the life of the underlying reinsured policies under U.S. GAAP.
19)DISCONTINUED OPERATIONS
Distribution of AllianceBernstein to Holdings
Effective December 31, 2018, the Company and its subsidiaries transferred
all economic interests in the business of AB to a newly created entity,
Alpha Unit Holdings, LLC ("Alpha"). The Company distributed all equity
interests in Alpha to AXA Equitable Financial Services, LLC, a wholly-owned
subsidiary of Holdings. The AB transfer and subsequent distribution of Alpha
equity interests ("the AB Business Transfer") removed the authority to
control the business of AB and as such AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements
in all periods presented. Prior to the fourth quarter of 2018, the Company
reported the operations of AB as its Investment Management and Research
segment.
In connection with the transfer, the Company paid an extraordinary dividend
in cash to Holdings in the amount of $572 million. The Company also issued a
one-year senior surplus note to Holdings for $572 million that was repaid on
March 5, 2019. See Note 12 for details of the senior surplus note.
Transactions Prior to Distribution
Intercompany transactions prior to the AB Business Transfer between the
Company and AB were eliminated and excluded from the consolidated statements
of income (loss) and consolidated balance sheets.
The table below presents AB's revenues recognized in 2018, 2017 and 2016,
disaggregated by category:
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Investment management, advisory and service
fees:
Base fees.................................. $ 2,156 $ 2,025 $ 1,809
Performance-based fees..................... 118 95 33
Research services.......................... 439 450 480
Distribution services...................... 419 412 384
|
F-75
YEARS ENDED DECEMBER 31,
-----------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
Other revenues:
Shareholder services....................... $ 76 $ 75 $ 78
Other...................................... 35 42 21
--------- --------- ---------
Total investment management and service fees. $ 3,243 $ 3,099 $ 2,804
========= ========= =========
|
Transactions Ongoing after Distribution
After the AB Business Transfer, services provided by AB will consist
primarily of an investment management service agreement and will be included
in investment expenses and identified as a related party transaction.
Discontinued Operations
The following table presents the amounts related to the Net income (loss) of
AB that has been reflected in Discontinued operations:
YEARS ENDED DECEMBER 31,
-------------------------------
2018 2017 2016
--------- --------- ---------
(IN MILLIONS)
REVENUES
Net derivative gains (losses)................ $ 12 $ (24) $ (16)
Net investment income (loss)................. 24 142 150
Investment gains (losses), net:
Other investment gains (losses), net....... -- -- (2)
--------- --------- ---------
Total investment gains (losses), net...... -- -- (2)
--------- --------- ---------
Investment management and service fees....... 3,243 3,099 2,804
--------- --------- ---------
Total revenues............................ 3,279 3,217 2,936
--------- --------- ---------
BENEFITS AND OTHER DEDUCTIONS
Compensation and benefits.................... 1,370 1,307 1,231
Commissions and distribution related payments 427 415 372
Interest expense............................. 8 6 3
Other operating costs and expenses........... 727 789 699
--------- --------- ---------
Total benefits and other deductions....... 2,532 2,517 2,305
--------- --------- ---------
Income (loss) from discontinued operations,
before income taxes........................ 747 700 631
Income tax (expense) benefit................. (69) (82) (69)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes................... 678 618 562
Less: Net (income) loss attributable to the
noncontrolling interest.................... (564) (533) (496)
--------- --------- ---------
Net income (loss) from discontinued
operations, net of taxes and
noncontrolling interest.................... $ 114 $ 85 $ 66
========= ========= =========
|
F-76
The following table presents the amounts related to the financial position
of AB as of December 31, 2017. As the Company deconsolidated AB effective
December 31, 2018, amounts related to AB's financial position as of
December 31, 2018 are not included in the Company's consolidated balance
sheet as of that date. The amounts as of December 31, 2017 have been
reflected in either the Assets of disposed subsidiary or Liabilities of
disposed subsidiary, as applicable, in the Company's consolidated balance
sheet:
ASSETS AND LIABILITIES OF DISPOSED SUBSIDIARY
AS OF DECEMBER 31, 2017
------------------------
(IN MILLIONS)
ASSETS
Investments:
Other equity investments............................. $ 87
Trading securities, at fair value.................... 351
Other invested assets................................ 1,291
------------------------
Total investments................................... 1,729
Cash and cash equivalents.............................. 1,009
Cash and securities segregated, at fair value.......... 816
Broker-dealer related receivables...................... 2,158
Intangible assets, net................................. 3,709
Other assets........................................... 414
------------------------
TOTAL ASSETS OF DISPOSED SUBSIDIARY.................. $ 9,835
========================
LIABILITIES
Broker-dealer related payables......................... $ 334
Customer related payables.............................. 2,229
Long-term debt......................................... 566
Current and deferred income taxes...................... 404
Other liabilities...................................... 1,421
------------------------
TOTAL LIABILITIES OF DISPOSED SUBSIDIARY............. $ 4,954
------------------------
Redeemable noncontrolling interest of
disposed subsidiary.................................. 602
|
20)REVISION OF PRIOR PERIOD FINANCIAL STATEMENTS
During the fourth quarter of 2018, the Company identified certain cash flows
that were incorrectly classified in the Company's consolidated statements of
cash flows. The Company has determined that these misclassifications were
not material to the financial statements of any period. These have been
corrected in the comparative consolidated statements of cash flows for the
year ended December 31, 2017 contained elsewhere in this filing.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company changed the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer in the fourth quarter of 2018, AB's operations are now reflected as
a discontinued operation in the Company's consolidated financial statements.
The financial information for prior periods presented in the consolidated
financial statements have been adjusted to reflect AB as a discontinued
operation.
F-77
Consolidated Financial Statements as of and for the Year Ended December 31,
2017
The following tables present line items in the consolidated financial
statements as of and for the year ended December 31, 2017 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the 2017 Form 10-K. For these items, the
tables detail the amounts as previously reported, the impact upon those line
items due to the revisions, and the amounts as currently revised.
AS OF DECEMBER 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,547 $ -- $ 4,547 $ (55) $ 4,492
--------------- ------------ ----------- --------- -----------
Total Assets.............................. $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ 29,034 -- 29,034 36 29,070
Current and deferred taxes................. 1,973 (404) 1,569 (19) 1,550
--------------- ------------ ----------- --------- -----------
Total Liabilities......................... 205,795 -- 205,795 17 205,812
--------------- ------------ ----------- --------- -----------
EQUITY:
Retained Earnings.......................... 9,010 -- 9,010 (72) 8,938
--------------- ------------ ----------- --------- -----------
AXA Equitable Equity....................... 16,469 -- 16,469 (72) 16,397
--------------- ------------ ----------- --------- -----------
Total Equity............................... 19,564 -- 19,564 (72) 19,492
--------------- ------------ ----------- --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity........ $ 225,985 $ -- $ 225,985 $ (55) $ 225,930
=============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------ ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 3,334 $ -- $ -- $ 3,334 $ (40) $ 3,294
Net derivative gains (losses).............. 890 -- 24 914 (20) 894
-------------- ----------- ------------ ----------- --------- ----------
Total revenues............................ 11,733 -- (3,217) 8,516 (60) 8,456
-------------- ----------- ------------ ----------- --------- ----------
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 3,462 -- -- 3,462 11 3,473
Interest credited to policyholder's
account balances.......................... 1,040 -- -- 1,040 (119) 921
Compensation and benefits.................. 1,762 (128) (1,307) 327 -- 327
Commissions and distribution
related payments.......................... 1,486 (443) (415) 628 -- 628
Amortization of deferred policy
acquisition costs......................... 268 578 -- 846 54 900
Other operating costs and expenses......... 1,431 (7) (789) 635 -- 635
-------------- ----------- ------------ ----------- --------- ----------
Total benefits and other deductions....... 9,478 -- (2,517) 6,961 (54) 6,907
|
F-78
YEAR ENDED DECEMBER 31, 2017
---------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
Income (loss) from continuing operations, before
income taxes...................................... $ 2,255 $ -- $ (700) $ 1,555 $ (6) $ 1,549
Income tax (expense) benefit from
continuing operations............................. 1,139 -- (111) 1,028 182 1,210
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss) from continuing operations........ 3,394 -- (811) 2,583 176 2,759
------------- ------------ ------------ ----------- ---------- ----------
Net income (loss)................................... 3,394 -- (533) 2,861 (17) 2,844
------------- ------------ ------------ ----------- ---------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO AXA EQUITABLE..... $ 2,860 $ -- $ -- $ 2,860 $ (17) $ 2,843
============= ============ ============ =========== ========== ==========
|
YEAR ENDED DECEMBER 31, 2017
--------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- ------------ ------------- --------- -------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)............................ $ 3,394 $ (533) $ 2,861 $ (17) $ 2,844
Change in unrealized gains (losses), net of
reclassification adjustment................ 563 -- 563 21 584
Other comprehensive income................... 599 (18) 581 21 602
--------------- ------------ ------------- --------- -------------
Comprehensive income (loss).................. 3,993 (551) 3,442 4 3,446
--------------- ------------ ------------- --------- -------------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ 3,441 $ -- $ 3,441 $ 4 $ 3,445
=============== ============ ============= ========= =============
|
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year................. $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to AXA Equitable...... 2,860 -- 2,860 (17) 2,843
------------- ------------- ----------- --------- ----------
Retained earnings, end of period..................... 9,010 -- 9,010 (72) 8,938
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, beginning
of year............................................. 17 -- 17 (21) (4)
Other comprehensive income (loss).................... 581 -- 581 21 602
------------- ------------- ----------- --------- ----------
Accumulated other comprehensive income, end of year.. 598 -- 598 -- 598
------------- ------------- ----------- --------- ----------
Total AXA Equitable's equity, end of year............ 16,469 -- 16,469 (72) 16,397
TOTAL EQUITY, END OF YEAR.............................. $ 19,564 $ -- $ 19,564 $ (72) $ 19,492
============= ============= =========== ========= ==========
|
F-79
YEAR ENDED DECEMBER 31, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 3,394 $ -- $ (17) $ 3,377
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,040 -- (119) 921
Policy charges and fee income......................... (3,334) -- 40 (3,294)
Net derivative (gains) losses......................... (890) -- 20 (870)
Amortization and depreciation......................... (136) 907 54 825
Amortization of deferred sales commission............. 32 (32) -- --
Amortization of other intangibles..................... 31 (31) -- --
Equity (income) loss from limited partnerships........ -- (157) -- (157)
Distributions from joint ventures and
limited partnerships................................ 140 (140) -- --
Changes in:
Reinsurance recoverable............................. (416) -- (602) (1,018)
Deferred policy acquisition costs................... 268 (268) -- --
Capitalization of deferred policy
acquisition costs................................. -- (578) -- (578)
Future policy benefits.............................. 1,511 -- (322) 1,189
Current and deferred income taxes................... (664) -- (510) (1,174)
Other, net.......................................... 189 297 -- 486
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ 1,077 $ (2) $ (1,456) $ (381)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ $ -- $ 2,204 $ -- $ 2,204
Payment for the purchase/origination of:
Short-term investments................................ -- (2,456) -- (2,456)
Change in short-term investments....................... (264) 254 10 --
Other, net............................................. 238 -- 84 322
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (9,010) $ 2 $ 94 $ (8,914)
------------ ----------------- --------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.............................................. $ 9,882 $ -- $ (548) $ 9,334
Withdrawals........................................... (5,926) -- 2,000 (3,926)
Transfer (to) from Separate Accounts.................. 1,656 -- (90) 1,566
------------ ----------------- --------- -----------
Net cash provided by (used in) financing activities.... $ 8,370 $ -- $ 1,362 $ 9,732
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $533 million in 2017 of the discontinued
operations that are not included in net income (loss) in the
Consolidated Statements of Income (Loss).
Consolidated Financial Statements for the Year Ended December 31, 2016
The following table presents line items for the consolidated financial
statements for the year ended December 31, 2016 that have been affected by
the aforementioned adjustments and revisions. This information has been
corrected from the information previously presented and restated in the 2017
Form 10-K. For these items, the table details the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, adjustments for the discontinued
operation, and revisions and the amounts as currently revised.
F-80
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ----------- ------------- ------------ ----------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income......... $ 3,344 $ -- $ -- $ 3,344 $ (33) $ 3,311
Net derivative gains (losses)......... (1,211) -- 16 (1,195) (126) (1,321)
-------------- ----------- ------------- ------------ ----------- -----------
Total revenues....................... 9,138 -- (2,936) 6,202 (159) 6,043
BENEFITS AND OTHER DEDUCTIONS:
Interest credited to Policyholder's
account balances..................... 1,029 -- -- 1,029 (124) 905
Compensation and benefits............. 1,723 (128) (1,231) 364 -- 364
Commissions and distribution
related payments..................... 1,467 (460) (372) 635 -- 635
Amortization of deferred policy
acquisition costs.................... 52 594 -- 646 (4) 642
Other operating costs and expenses.... 1,458 (6) (699) 753 -- 753
-------------- ----------- ------------- ------------ ----------- -----------
Total benefits and other deductions.. 8,516 -- (2,305) 6,211 (128) 6,083
Income (loss) from continuing
operations, before income taxes....... 622 -- (631) (9) (31) (40)
Income tax (expense) benefit from
continuing operations................. 84 -- 69 153 11 164
Net income (loss) from
continuing operations................. 706 -- (562) 144 (20) 124
Net income (loss)....................... 706 -- (496) 210 (20) 190
-------------- ----------- ------------- ------------ ----------- -----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE......................... $ 210 $ -- $ -- $ 210 $ (20) $ 190
============== =========== ============= ============ =========== ===========
|
YEAR ENDED DECEMBER 31, 2016
-----------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
--------------- --------------- ------------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)...................................... $ 706 $ (496) $ 210 $ (20) $ 190
--------------- --------------- ------------- ---------- ----------
Change in unrealized gains (losses), net of
reclassification adjustment.......................... (194) -- (194) (21) (215)
Other comprehensive income............................. (215) 17 (198) (21) (219)
Comprehensive income (loss)............................ 491 (479) 12 (41) (29)
--------------- --------------- ------------- ---------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE........................................ $ 12 $ -- $ 12 $ (41) $ (29)
=============== =============== ============= ========== ==========
|
F-81
YEAR ENDED DECEMBER 31, 2016
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year......... $ 6,990 $ -- $ 6,990 $ (35) $ 6,955
Net income (loss) attributable to
AXA Equitable............................... 210 -- 210 (20) 190
-------------- ------------ ----------- --------- -----------
Retained earnings, end of period............. 6,150 -- 6,150 (55) 6,095
-------------- ------------ ----------- --------- -----------
Other comprehensive income (loss)............ (198) -- (198) (21) (219)
-------------- ------------ ----------- --------- -----------
Accumulated other comprehensive income, end
of period................................... 17 -- 17 (21) (4)
-------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period.. $ 11,508 $ -- $ 11,508 $ (76) $ 11,432
============== ============ =========== ========= ===========
|
YEAR ENDED DECEMBER 31, 2016
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/................................... $ 706 $ -- $ (20) $ 686
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Interest credited to policyholders' account balances.. 1,029 -- (124) 905
Policy charges and fee income......................... (3,344) -- 33 (3,311)
Net derivative (gains) losses......................... 1,211 -- 126 1,337
Amortization and depreciation......................... -- 618 (4) 614
Amortization of deferred sales commission............. 41 (41) -- --
Other depreciation and amortization................... (98) 98 -- --
Amortization of other intangibles..................... 29 (29) -- --
Equity (income) loss from limited partnerships........ -- (91) -- (91)
Return of real estate joint venture and
limited partnerships................................ 126 (126) -- --
Changes in:
Deferred policy acquisition costs................... 52 (52) -- --
Capitalization of deferred policy
acquisition costs................................. -- (594) -- (594)
Current and deferred income taxes................... (742) -- (11) (753)
Other, net.......................................... (161) 217 -- 56
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES.... $ (461) $ -- $ -- $ (461)
------------ ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity/prepayment of:
Short-term investments................................ -- 2,984 -- 2,984
Payment for the purchase/origination of:...............
Short-term investments................................ -- (3,187) -- (3,187)
Change in short-term investments....................... (205) 205 -- --
Other, net............................................. 409 (2) -- 407
------------ ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES...... $ (5,358) $ -- $ -- $ (5,358)
------------ ----------------- --------- -----------
|
/(1)/Net income (loss) includes $496 million in 2016 of the discontinued
operations that are not included in Net income (loss) in the
Consolidated Statements of Income (Loss).
F-82
21)QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The unaudited quarterly financial information for the years ended
December 31, 2018 and 2017 are summarized in the table below:
THREE MONTHS ENDED
--------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
--------- ---------- ------------- ------------
(IN MILLIONS)
2018
Total revenues............................... $ 1,139 $ 1,621 $ 27 $ 4,164
Total benefits and other deductions.......... 1,512 4,278 763 1,879
--------- ---------- ------------- ------------
Net income (loss)............................ $ (264) $ (2,084) $ (509) $ 1,936
========= ========== ============= ============
2017
Total revenues............................... $ 1,554 $ 3,763 $ 1,621 $ 1,518
Total benefits and other deductions.......... 1,921 1,858 1,708 1,420
--------- ---------- ------------- ------------
Net income (loss)............................ $ (201) $ 1,508 $ 23 $ 1,515
========= ========== ============= ============
|
Net Income (Loss) Volatility
With the exception of the GMxB Unwind during the second quarter of 2018 that
is further described in Note 12, the fluctuation in the Company's quarterly
Net income (loss) during 2018 and 2017 is not due to any specific events or
transactions, but instead is driven primarily by the impact of changes in
market conditions on the Company's liabilities associated with GMxB features
embedded in its variable annuity products, partially offset by derivatives
the Company has in place to mitigate the movement in those liabilities. As
those derivatives do not qualify for hedge accounting treatment, volatility
in Net income (loss) result from the changes in value of the derivatives
being recognized in the period in which they occur, with offsetting changes
in the liabilities being partially recognized in the current period.
Reclassification of DAC Capitalization
During the fourth quarter of 2018, the Company revised the presentation of
the capitalization of deferred policy acquisition costs ("DAC") in the
consolidated statements of income for all prior periods presented herein by
netting the capitalized amounts within the applicable expense line items,
such as Compensation and benefits, Commissions and distribution plan
payments and Other operating costs and expenses. Previously, the Company had
netted the capitalized amounts within the Amortization of deferred
acquisition costs. There was no impact on Net income (loss) or Comprehensive
income of this reclassification. See Note 2 for further details of this
reclassification.
Revisions of Prior Period Interim Consolidated Financial Statements
The Company's third quarter 2018 financial statements were revised to
reflect the correction of errors identified by the Company in its previously
issued financial statements. The impact of these errors was not considered
to be material. However, in order to improve the consistency and
comparability of the financial statements, management revised the Company's
consolidated financial statements for the three and six months ended
March 31, 2018 and June 30, 2018, respectively, as well as the three and six
months ended March 31, 2017 and June 30, 2017.
In addition, during the fourth quarter of 2018, the Company identified
certain cash flows that were incorrectly classified in the Company's
historical consolidated statements of cash flows. The Company has determined
that these mis-classifications were not material to the financial statements
for any period. These misclassifications will be corrected in the
comparative consolidated statements of cash flows for the three, six and
nine months ended March 31, 2019, June 30, 2019 and September 30, 2019 that
will appear in the Company's first, second and third quarter 2019 Form 10-Q
filings, respectively.
Discontinued Operations
In addition, as further described in Note 19, as a result of the AB Business
Transfer effective as of December 31, 2018, AB's operations are now
reflected as Discontinued operations in the Company's consolidated financial
statements. The financial information for prior periods presented in the
consolidated financial statements have been adjusted to reflect AB as
Discontinued operations.
F-83
Revision of Consolidated Financial Statements as of and for the Three Months
Ended March 31, 2018
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 2018 that have
been affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... 4,826 -- 4,826 (119) 4,707
-------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,374 $ -- $ 28,374 $ (10) $ 28,364
Current and deferred taxes................. 1,728 (432) 1,296 (38) 1,258
Other liabilities.......................... 3,041 (1,941) 1,100 70 1,170
-------------- -------------- ----------- --------- -----------
Total Liabilities.......................... $ 202,767 $ -- $ 202,767 $ 22 $ 202,789
-------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 8,824 $ -- $ 8,824 $ (141) $ 8,683
AXA Equitable Equity....................... 15,545 -- 15,545 (141) 15,404
-------------- -------------- ----------- --------- -----------
Total Equity............................... 18,633 -- 18,633 (141) 18,492
-------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 222,424 $ -- $ 222,424 $ (119) $ 222,305
============== ============== =========== ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ ------------ ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 869 $ -- $ -- $ 869 $ (8) $ 861
Net derivative gains (losses).............. (777) -- (2) (779) (38) (817)
------------- ------------ ------------ ------------ ---------- ----------
Total Revenues........................... 2,031 -- (846) 1,185 (46) 1,139
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 489 -- -- 489 (9) 480
Interest credited to policyholders'
account balances......................... 338 -- -- 338 (83) 255
Compensation and benefits.................. 456 (33) (344) 79 70 149
Commissions and distribution
related payments......................... 371 (101) (110) 160 -- 160
Amortization of deferred policy
acquisition costs........................ 10 135 -- 145 64 209
Other operating costs and expenses......... 440 (1) (189) 250 -- 250
------------- ------------ ------------ ------------ ---------- ----------
Total benefits and other deductions...... 2,115 -- (645) 1,470 42 1,512
------------- ------------ ------------ ------------ ---------- ----------
|
F-84
THREE MONTHS ENDED MARCH 31, 2018
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- ----------
(IN MILLIONS)
Income (loss) from continuing operations,
before income taxes....................... $ (84) $ -- $ (201) $ (285) (88) (373)
Income tax (expense) benefit from
continuing operations..................... 44 -- 17 61 19 80
------------ ---------- ----------- ----------- -------- ----------
Net income (loss) from
continuing operations..................... (40) -- (184) (224) (69) (293)
------------ ---------- ----------- ----------- -------- ----------
Net income (loss).......................... (40) -- (155) (195) (69) (264)
------------ ---------- ----------- ----------- -------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE............................. $ (194) $ -- $ -- $ (194) $ (69) $ (263)
============ ========== =========== =========== ======== ==========
|
THREE MONTHS ENDED MARCH 31, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- ----------
(IN MILLIONS)
STATEMENTS OF COMPREHENSIVE INCOME (LOSS):
Net income (loss)............................. $ (40) $ (155) $ (195) $ (69) $ (264)
------------- ------------ ----------- --------- ----------
Comprehensive income (loss)................... $ (789) $ (162) $ (951) $ (69) $ (1,020)
------------- ------------ ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE................................ $ (950) $ -- $ (950) $ (69) $ (1,019)
============= ============ =========== ========= ==========
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year.......... $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
------------- ------------ ----------- --------- ----------
Net income (loss)............................. (194) -- (194) (69) (263)
------------- ------------ ----------- --------- ----------
Retained earnings, end of period.............. 8,824 -- 8,824 (141) 8,683
Total AXA Equitable's equity, end of period... 15,545 15,545 (141) 15,404
------------- ------------ ----------- --------- ----------
TOTAL EQUITY, END OF PERIOD.................. $ 18,633 $ -- $ 18,633 $ (141) $ 18,492
============= ============ =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2018
------------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ------------------ ------------ -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/.......................... $ (40) $ -- $ (69) $ (109)
Adjustments to reconcile net income (loss) to
net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances........................... 338 -- (83) 255
Policy charges and fee income................ (869) -- 8 (861)
Net derivative (gains) losses................ 777 -- 38 815
Amortization and depreciation................ -- 137 64 201
Amortization of deferred sales commission.... 7 (7) -- --
Other depreciation and amortization.......... (23) 23 -- --
Amortization of other Intangibles............ 8 (8) -- --
Equity (income) loss from
limited partnerships....................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships....................... 25 (25) -- --
|
F-85
THREE MONTHS ENDED MARCH 31, 2018
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ------------------ --------- ----------
(IN MILLIONS)
Changes in:
Reinsurance recoverable.................... $ 2 $ -- $ (149) $ (147)
Deferred policy acquisition costs.......... 10 (10) -- --
Capitalization of deferred policy
acquisition costs........................ -- (135) -- (135)
Future policy benefits..................... (191) -- (7) (198)
Current and deferred income taxes.......... (52) -- 132 80
Other, net................................. (122) 64 70 12
------------ ------------------ --------- ----------
Net cash provided by (used in)
operating activities....................... $ (21) $ -- $ 4 $ (17)
------------ ------------------ --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................. $ 1,606 $ -- $ 77 $ 1,683
Real estate held for the production
of income................................ -- 140 -- 140
Short-term investments..................... -- 688 -- 688
Other...................................... 54 (140) -- (86)
Payment for the purchase/origination of:
Short-term investments..................... -- (377) -- (377)
Cash settlements related to
derivative instruments..................... (14) -- (489) (503)
Change in short-term investments............ 396 (311) (85) --
Other, net.................................. (560) -- 153 (407)
------------ ------------------ --------- ----------
Net cash provided by (used in)
investing activities........................ $ (639) $ -- $ (344) $ (983)
------------ ------------------ --------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,366 $ -- $ (468) $ 1,898
Withdrawals................................ (1,322) -- 241 (1,081)
Transfer (to) from Separate Accounts....... (115) -- 567 452
------------ ------------------ --------- ----------
Net cash provided by (used in)
financing activities........................ $ 1,040 $ -- $ 340 $ 1,380
------------ ------------------ --------- ----------
|
/(1)/Net income (loss) includes $154 million in the three months ended
March 31, 2018 of the discontinued operations that are not included in
net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of June 30, 2018 and for the three and six months ended
June 30, 2018 that have been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
June 30, 2018 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables.
AS OF JUNE 30, 2018
------------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
----------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,786 $ -- $ 4,786 $ (76) $ 4,710
Amounts due from reinsurers................ 3,088 -- 3,088 (9) 3,079
Current and deferred taxes................. 159 422 581 3 584
----------- ----------- ------------ --------- -----------
Total Assets............................. $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
----------- ----------- ------------ --------- -----------
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities............... $ 28,122 $ -- $ 28,122 $ (64) $ 28,058
----------- ----------- ------------ --------- -----------
Total Liabilities........................ $ 202,196 $ -- $ 202,196 $ (64) $ 202,132
----------- ----------- ------------ --------- -----------
|
F-86
AS OF JUNE 30, 2018
-----------------------------------------------------------
AS DISCONTINUED
PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
---------- ------------ ------------ --------- -----------
(IN MILLIONS)
EQUITY:
Retained Earnings.......................... $ 6,617 $ -- $ 6,617 $ (18) $ 6,599
AXA Equitable Equity....................... 13,925 -- 13,925 (18) 13,907
---------- ------------ ------------ --------- -----------
Total Equity............................. 16,964 -- 16,964 (18) 16,946
---------- ------------ ------------ --------- -----------
Total Liabilities, Redeemable
Noncontrolling Interest and Equity......... $ 219,306 $ -- $ 219,306 $ (82) $ 219,224
========== ============ ============ ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2018
----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 904 $ -- $ -- $ 904 $ (21) $ 883
Net derivative gains (losses).............. (312) -- -- (312) 27 (285)
------------- ---------- ----------- ----------- -------- -----------
Total revenues........................... 2,439 -- (824) 1,615 6 1,621
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,339 -- -- 1,339 (38) 1,301
Compensation and benefits.................. 466 (32) (360) 74 -- 74
Commissions and distribution
related payments......................... 377 (112) (106) 159 -- 159
Amortization of deferred policy
acquisition costs........................ 31 145 1 177 5 182
Other operating costs and expenses......... 2,486 (1) (172) 2,313 -- 2,313
------------- ---------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 4,950 -- (639) 4,311 (33) 4,278
------------- ---------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,511) -- (185) (2,696) 39 (2,657)
Income tax (expense) benefit from
continuing operations...................... 553 -- 8 561 (9) 552
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (1,958) -- (177) (2,135) 30 (2,105)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss)........................... (1,958) -- (156) (2,114) 30 (2,084)
------------- ---------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,114) $ -- $ -- $ (2,114) $ 30 $ (2,084)
============= ========== =========== =========== ======== ===========
|
THREE MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (1,958) $ (156) $ (2,114) $ 30 $ (2,084)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss)................ (2,278) (142) (2,420) 30 (2,390)
------------- ----------- ----------- -------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (2,420) $ -- $ (2,420) $ 30 $ (2,390)
============= =========== =========== ======== ===========
|
F-87
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,773 $ -- $ -- $ 1,773 $ (29) $ 1,744
Net derivative gains (losses).............. (1,172) -- (2) (1,174) 72 (1,102)
------------- ----------- ----------- ----------- -------- -----------
Total revenues........................... 4,387 -- (1,670) 2,717 43 2,760
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 1,828 -- -- 1,828 (47) 1,781
Compensation and benefits.................. 992 (65) (704) 223 -- 223
Commissions and distribution
related payments......................... 748 (213) (216) 319 -- 319
Amortization of deferred policy
acquisition costs........................ 89 280 1 370 21 391
Other operating costs and expenses......... 2,926 (2) (361) 2,563 -- 2,563
------------- ----------- ----------- ----------- -------- -----------
Total benefits and other deductions...... 7,100 -- (1,284) 5,816 (26) 5,790
------------- ----------- ----------- ----------- -------- -----------
Income (loss) from continuing operations,
before income taxes........................ (2,713) -- (386) (3,099) 69 (3,030)
------------- ----------- ----------- ----------- -------- -----------
Income tax (expense) benefit from
continuing operations...................... 622 -- 25 647 (15) 632
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) from
continuing operations...................... (2,091) -- (361) (2,452) 54 (2,398)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss)........................... (2,091) -- (311) (2,402) 54 (2,348)
------------- ----------- ----------- ----------- -------- -----------
Net income (loss) attributable to
AXA Equitable.............................. $ (2,401) $ -- $ -- $ (2,401) $ 54 $ (2,347)
============= =========== =========== =========== ======== ===========
|
SIX MONTHS ENDED JUNE 30, 2018
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ (2,091) $ (311) $ (2,402) $ 54 $ (2,348)
------------- ----------- ------------- --------- -----------
Comprehensive income (loss)................ (3,160) (305) (3,465) 54 (3,411)
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ (3,463) $ -- $ (3,463) $ 54 $ (3,409)
============= =========== ============= ========= ===========
|
F-88
SIX MONTHS ENDED JUNE 30, 2018
---------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 9,010 $ -- $ 9,010 $ (72) $ 8,938
Net income (loss) attributable to
AXA Equitable.............................. (2,401) -- (2,401) 54 (2,347)
------------- ------------ ----------- --------- -----------
Retained earnings, end of period............ 6,617 -- 6,617 (18) 6,599
------------- ------------ ----------- --------- -----------
Total AXA Equitable's equity, end of period. 13,925 -- 13,925 (18) 13,907
------------- ------------ ----------- --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 16,964 $ -- $ 16,964 $ (18) $ 16,946
============= ============ =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ----------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (2,091) $ -- $ 54 $ (2,037)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,773) -- 29 (1,744)
Net derivative (gains) losses............... 1,172 -- (72) 1,100
Amortization and depreciation............... -- 335 21 356
Amortization of deferred sales commission... 13 (13) -- --
Other depreciation and amortization......... (45) 45 -- --
Equity (income) loss from
limited partnerships...................... -- (60) -- (60)
Distributions from joint ventures and
limited partnerships...................... 44 (44) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:
Reinsurance recoverable................... 15 -- 166 181
Deferred policy acquisition costs......... 89 (89) -- --
Capitalization of deferred policy
acquisition costs....................... -- (280) -- (280)
Future policy benefits.................... 396 -- (554) (158)
Current and deferred income taxes......... (645) -- 167 (478)
Other, net................................ 416 104 (304) 216
----------- ------------ ----------- ------------
Net cash provided by (used in)
operating activities........................ $ 1,190 $ (2) $ (319) $ 869
----------- ------------ ----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities.................. $ 4,843 $ -- $ 24 $ 4,867
Real estate joint ventures.................. -- 140 -- 140
Short-term investments...................... -- 1,331 (24) 1,307
Other....................................... 260 (140) -- 120
Payment for the purchase/origination of:
Short-term investments...................... -- (1,081) 205 (876)
Cash settlements related to
derivative instruments...................... (267) -- (489) (756)
Change in short-term investments............. 248 (248) -- --
Other, net................................... 379 -- 11 390
----------- ------------ ----------- ------------
Net cash provided by (used in)
investing activities......................... $ (1,605) $ 2 $ (273) $ (1,876)
----------- ------------ ----------- ------------
|
F-89
SIX MONTHS ENDED JUNE 30, 2018
----------------------------------------------------
PRESENTATION
AS RECLASSIFI-
REPORTED CATIONS REVISIONS AS REVISED
----------- ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 5,227 $ -- $ (1,107) $ 4,120
Withdrawals............................... (2,611) -- 480 (2,131)
Transfer (to) from Separate Accounts...... (305) -- 1,219 914
|
/(1)/Net income (loss) includes $310 million in the six months ended June 30,
2018 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated statement of
cash flows for the nine months ended September 30, 2018 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's September 30, 2018 Form
10-Q. For these items, the tables detail the amounts as previously reported
and the impact upon those line items due to the reclassifications to conform
to the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables. Tables for the
other consolidated financial statements as of or for the three and nine
months ended September 30, 2018 are not presented as these revisions were
already reflected in the Company's September 30, 2018 Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2018
---------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ------------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 258 $ -- $ 258
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (60) 60 -- --
Equity (income) loss from
limited partnerships...................... -- (83) -- (83)
Distribution from joint ventures and
limited partnerships...................... 63 (63) -- --
Cash received on the recapture of
captive reinsurance....................... 1,099 -- 174 1,273
Changes in:.................................
Reinsurance recoverable................... 20 -- 86 106
Deferred policy acquisition costs......... (129) 129 -- --
Capitalization of deferred policy
acquisition costs....................... -- (432) -- (432)
Future policy benefits.................... (58) -- (541) (599)
Current and deferred income taxes......... (264) -- (400) (664)
Other, net................................ 123 146 179 448
----------- ------------------- ---------- -----------
NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES.................................. $ 1,614 $ (2) $ (502) $ 1,110
----------- ------------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Trading account securities................ $ 6,913 $ -- $ 77 $ 6,990
Real estate joint ventures................ -- 140 -- 140
Short-term investments.................... -- 1,806 -- 1,806
Other..................................... 344 (140) -- 204
Short-term investments.................... -- (1,530) 204 (1,326)
Cash settlements related to
derivative instruments...................... (584) -- (492) (1,076)
Change in short-term investments............. 350 (274) (77) (1)
Other, net................................... 305 -- (19) 286
----------- ------------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (2,990) $ 2 $ (307) $ (3,295)
----------- ------------------- ---------- -----------
|
F-90
NINE MONTHS ENDED SEPTEMBER 30, 2018
----------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- -------------------- ---------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................. $ 7,852 $ -- $ (1,668) $ 6,184
Withdrawals............................... (4,014) -- 760 (3,254)
Transfer (to) from Separate Accounts...... (338) -- 1,717 1,379
------------- -------------------- ---------- ----------
Net cash provided by (used in)
financing activities....................... $ 1,293 $ -- $ 809 $ 2,102
------------- -------------------- ---------- ----------
|
The following tables present line items of the consolidated financial
statements as of and for the three months ended March 31, 20 that have been
affected by the revisions. This information has been corrected from the
information previously presented in the Company's March 31, 2018 Form 10-Q.
For these items, the tables detail the amounts as previously reported and
the impact upon those line items due to the reclassifications to conform to
the current presentation, the adjustment for the discontinued operation,
revisions and the amounts as currently revised. Prior period amounts have
been reclassified to conform to current period presentation, where
applicable, and are summarized in the accompanying tables.
AS OF MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------- ------------ --------- ----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,961 $ -- $ 4,961 $ (64) $ 4,897
-------------- ------------- ------------ --------- ----------
Total Assets.............................. $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 28,691 $ -- $ 28,691 $ 66 $ 28,757
Current and deferred taxes................. 2,726 (562) 2,164 (46) 2,118
-------------- ------------- ------------ --------- ----------
Total Liabilities......................... $ 195,091 $ -- $ 195,091 $ 20 $ 195,111
-------------- ------------- ------------ --------- ----------
EQUITY:
Retained Earnings.......................... $ 5,978 $ -- $ 5,978 $ (84) $ 5,894
-------------- ------------- ------------ --------- ----------
AXA Equitable Equity....................... 11,459 -- 11,459 (84) 11,375
-------------- ------------- ------------ --------- ----------
Noncontrolling interest.................... 3,046 -- 3,046 -- 3,046
Total Equity............................... 14,505 -- 14,505 (84) 14,421
-------------- ------------- ------------ --------- ----------
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND EQUITY........................ $ 210,013 $ -- $ 210,013 $ (64) $ 209,949
============== ============= ============ ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ------------ ---------- ------------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 852 $ -- $ -- $ 852 $ (22) $ 830
Net derivative gains (losses).............. (362) -- 10 (352) 7 (345)
------------- ----------- ------------- ------------ ---------- ------------
Total revenues........................... 2,314 -- (745) 1,569 (15) 1,554
|
F-91
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ----------- ------------- ----------- --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... 975 -- -- 975 (3) 972
Interest credited to policyholders'
account balances......................... 279 -- -- 279 (30) 249
Compensation and benefits.................. 438 (33) (322) 83 -- 83
Commissions and distribution
related payments......................... 382 (114) (96) 172 -- 172
Amortization of deferred policy
acquisition costs........................ 29 148 -- 177 63 240
Other operating costs and expenses......... 381 (1) (179) 201 -- 201
------------- ----------- ------------- ----------- --------- ----------
Total benefits and other deductions...... 2,489 -- (598) 1,891 30 1,921
------------- ----------- ------------- ----------- --------- ----------
Income (loss) from continuing operations,
before income taxes........................ (175) -- (147) (322) (45) (367)
Income tax (expense) benefit from
continuing operations...................... 121 -- 11 132 16 148
------------- ----------- ------------- ----------- --------- ----------
Net income (loss) from
continuing operations...................... (54) -- (136) (190) (29) (219)
------------- ----------- ------------- ----------- --------- ----------
Net income (loss)........................... (54) -- (118) (172) (29) (201)
------------- ----------- ------------- ----------- --------- ----------
NET INCOME (LOSS) ATTRIBUTABLE TO
AXA EQUITABLE.............................. $ (172) $ -- $ -- $ (172) $ (29) $ (201)
============= =========== ============= =========== ========= ==========
|
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------- ----------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ (54) $ (118) $ (172) $ (29) $ (201)
------------- ------------- ----------- --------- ----------
Change in unrealized gains (losses), net
of reclassification adjustment.......... 92 -- 92 21 113
Total other comprehensive income (loss),
net of income taxes..................... 127 (7) 120 21 141
------------- ------------- ----------- --------- ----------
Comprehensive income (loss)............... 73 (125) (52) (8) (60)
------------- ------------- ----------- --------- ----------
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE
TO AXA EQUITABLE........................ $ (52) $ -- $ (52) $ (8) $ (60)
============= ============= =========== ========= ==========
|
F-92
THREE MONTHS ENDED MARCH 31, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF EQUITY:
Retained earnings, beginning of year........ $ 6,150 $ -- $ 6,150 $ (55) $ 6,095
Net income (loss) attributable to
AXA Equitable.............................. (172) -- (172) (29) (201)
------------- ------------ ------------ --------- -----------
Retained earnings, end of period............ 5,978 -- 5,978 (84) 5,894
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
beginning of year.......................... 17 -- 17 (21) (4)
Other comprehensive income (loss)........... 120 -- 120 21 141
------------- ------------ ------------ --------- -----------
Accumulated other comprehensive income,
end of period.............................. 137 -- 137 -- 137
------------- ------------ ------------ --------- -----------
Total AXA Equitable's equity, end of period. 11,459 -- 11,459 (84) 11,375
------------- ------------ ------------ --------- -----------
TOTAL EQUITY, END OF PERIOD................ $ 14,505 $ -- $ 14,505 $ (84) $ 14,421
============= ============ ============ ========= ===========
|
THREE MONTHS ENDED MARCH 31, 2017
--------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------- ----------------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ (54) $ -- $ (29) $ (83)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Interest credited to policyholders'
account balances.......................... 279 -- (30) 249
Policy charges and fee income............... (852) -- 22 (830)
Net derivative (gains) losses............... 362 -- (7) 355
Amortization and depreciation............... -- 229 63 292
Amortization of deferred sales commission... 9 (9) -- --
Other depreciation and amortization......... 36 (36) -- --
Amortization of other intangibles........... 8 (8) -- --
Equity (income) loss from
limited partnerships...................... -- (39) -- (39)
Distributions from joint ventures and
limited partnerships...................... 26 (26) -- --
Changes in: --
Reinsurance recoverable................... (23) -- (173) (196)
Deferred policy acquisition costs......... 29 (29) -- --
Capitalization of deferred policy
acquisition costs....................... -- (148) -- (148)
Future policy benefits.................... 241 -- 17 258
Current and deferred income taxes......... (188) -- (6) (194)
Other, net................................ 151 65 -- 216
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES......................... $ 18 $ (1) $ (143) $ (126)
------------- ----------------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 631 $ -- $ 631
Payment for the purchase/origination of:
Short-term investments...................... -- (376) (289) (665)
Change in short-term investments............. 254 (254) -- --
Other, net................................... 43 -- 100 143
------------- ----------------- --------- -----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES......................... $ (2,447) $ 1 $ (189) $ (2,635)
------------- ----------------- --------- -----------
|
F-93
THREE MONTHS ENDED MARCH 31, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
------------ ----------------- --------- ----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 2,240 $ -- $ 269 $ 2,509
Withdrawals................................ (785) -- (157) (942)
Transfer (to) from Separate Accounts....... 176 -- 220 396
------------ -------------- -------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES....................... $ 2,306 $ -- $ 332 $ 2,638
------------ -------------- -------- ----------
|
/(1)/Net income (loss) includes $118 million in the three months ended
March 31, 2017 of the discontinued operations that are not included in
Net income (loss) in the Consolidated Statements of Income (Loss).
The following tables present line items of the consolidated financial
statements as of and for the three and six months ended June 30, 2017 that
have been affected by the revisions. This information has been corrected
from the information previously presented in the Company's June 30, 2018
Form 10-Q. For these items, the tables detail the amounts as previously
reported and the impact upon those line items due to the reclassifications
to conform to the current presentation, the adjustment for the discontinued
operation, revisions and the amounts as currently revised. Prior period
amounts have been reclassified to conform to current period presentation,
where applicable, and are summarized in the accompanying tables.
AS OF JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- -------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED BALANCE SHEET:
ASSETS:
Deferred policy acquisition costs.......... $ 4,913 $ -- $ 4,913 $ (63) $ 4,850
------------- -------------- ----------- --------- -----------
Total Assets.............................. $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
LIABILITIES:
Future policyholders' benefits and other
policyholders' liabilities................ $ 29,679 $ -- $ 29,679 $ 53 $ 29,732
Current and deferred taxes................. 3,267 (542) 2,725 (39) 2,686
------------- -------------- ----------- --------- -----------
Total Liabilities......................... $ 199,095 $ -- $ 199,095 $ 14 $ 199,109
------------- -------------- ----------- --------- -----------
EQUITY:
Retained Earnings.......................... $ 7,479 $ -- $ 7,479 $ (77) $ 7,402
------------- -------------- ----------- --------- -----------
AXA Equitable Equity....................... 13,273 -- 13,273 (77) 13,196
------------- -------------- ----------- --------- -----------
Total Equity............................... 16,257 -- 16,257 (77) 16,180
------------- -------------- ----------- --------- -----------
Total Liabilities, Redeemable Noncontrolling
Interest and Equity........................ $ 215,713 $ -- $ 215,713 $ (63) $ 215,650
============= ============== =========== ========= ===========
|
THREE MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------ ----------- ---------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 846 $ -- $ -- $ 846 $ (12) $ 834
Net derivative gains (losses).............. 1,763 -- 5 1,768 8 1,776
------------- ---------- ------------ ----------- ---------- ----------
Total revenues........................... 4,548 -- (781) 3,767 (4) 3,763
|
F-94
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ------------ --------- ----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 1,363 $ -- $ -- $ 1,363 $ (7) $ 1,356
Interest credited to policyholders'
account balances......................... 208 -- -- 208 (9) 199
Compensation and benefits.................. 450 (32) (328) 90 -- 90
Commissions and distribution
related payments......................... 389 (116) (103) 170 -- 170
Amortization of deferred policy
acquisition costs........................ (49) 150 -- 101 (1) 100
Other operating costs and expenses......... 149 (2) (208) (61) -- (61)
------------- ---------- ------------- ------------ --------- ----------
Total benefits and other deductions...... 2,516 -- (641) 1,875 (17) 1,858
------------- ---------- ------------- ------------ --------- ----------
Income (loss) from continuing operations,
before income taxes......................... 2,032 -- (140) 1,892 13 1,905
------------- ---------- ------------- ------------ --------- ----------
Income tax (expense) benefit from
continuing operations....................... (419) -- 11 (408) (5) (413)
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) from continuing operations.. 1,613 -- (129) 1,484 8 1,492
------------- ---------- ------------- ------------ --------- ----------
Net income (loss)............................. 1,613 -- (113) 1,500 8 1,508
------------- ---------- ------------- ------------ --------- ----------
Net income (loss) attributable to
AXA Equitable............................... $ 1,500 $ -- $ -- $ 1,500 $ 8 $ 1,508
============= ========== ============= ============ ========= ==========
|
THREE MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- -------------- ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss)......................... $ 1,613 $ (113) $ 1,500 $ 8 $ 1,508
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss)............... 1,887 (93) 1,794 8 1,802
-------------- -------------- ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable........................ $ 1,794 $ -- $ 1,794 $ 8 $ 1,802
============== ============== ============ ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
--------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF INCOME (LOSS):
REVENUES:
Policy charges and fee income.............. $ 1,698 $ -- $ -- $ 1,698 $ (34) $ 1,664
Net derivative gains (losses).............. 1,362 -- 15 1,377 54 1,431
------------- ---------- ------------- ----------- --------- -----------
Total revenues........................... 6,823 -- (1,526) 5,297 20 5,317
|
F-95
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY GROSS DAC OPERATIONS IMPACT OF
REPORTED ADJUSTMENT ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ---------- ------------- ----------- --------- -----------
(IN MILLIONS)
BENEFITS AND OTHER DEDUCTIONS:
Policyholders' benefits.................... $ 2,338 $ -- $ -- $ 2,338 $ (10) $ 2,328
Compensation and benefits.................. 888 (65) (650) 173 -- 173
Commissions and distribution
related payments......................... 771 (230) (199) 342 -- 342
Amortization of deferred policy
acquisition costs........................ (20) 298 -- 278 62 340
Other operating costs and expenses......... 530 (3) (387) 140 -- 140
------------- ---------- ------------- ----------- --------- -----------
Total benefits and other deductions...... 4,966 -- (1,239) 3,727 52 3,779
------------- ---------- ------------- ----------- --------- -----------
Income (loss) from continuing operations,
before income taxes......................... 1,857 -- (287) 1,570 (32) 1,538
Income tax (expense) benefit from
continuing operations....................... (298) -- 22 (276) 11 (265)
------------- ---------- ------------- ----------- --------- -----------
Net income (loss) from continuing operations.. 1,559 -- (265) 1,294 (21) 1,273
------------- ---------- ------------- ----------- --------- -----------
Net income (loss)............................. 1,559 -- (231) 1,328 (21) 1,307
Net income (loss) attributable to
AXA Equitable............................... $ 1,328 $ -- $ -- $ 1,328 $ (21) $ 1,307
============= ========== ============= =========== ========= ===========
|
SIX MONTHS ENDED JUNE 30, 2017
----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
-------------- ------------ ------------ --------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME (LOSS):
Net income (loss).......................... $ 1,559 $ (231) $ 1,328 $ (21) $ 1,307
-------------- ------------ ------------ --------- -----------
Change in unrealized gains (losses), net
of reclassification adjustment............ 386 -- 386 21 407
Other comprehensive income................. 401 13 414 21 435
-------------- ------------ ------------ --------- -----------
Comprehensive income (loss) attributable
to AXA Equitable.......................... $ 1,742 $ -- $ 1,742 $ -- $ 1,742
============== ============ ============ ========= ===========
|
F-96
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------------------
DISCONTINUED
AS PREVIOUSLY OPERATIONS IMPACT OF
REPORTED ADJUSTMENT AS ADJUSTED REVISIONS AS REVISED
------------- ------------ ------------ --------- --------------
(IN MILLIONS)
STATEMENTS OF EQUITY:
Retained earnings, beginning of year....... $ 6,151 $ -- $ 6,151 $ (56) $ 6,095
Net income (loss) attributable to
AXA Equitable............................. 1,328 -- 1,328 (21) 1,307
------------- ------------ ------------ --------- --------------
Retained earnings, end of period........... 7,479 -- 7,479 (77) 7,402
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
beginning of year......................... 17 -- 17 (21) (4)
Other comprehensive income (loss).......... 414 -- 414 21 435
------------- ------------ ------------ --------- --------------
Accumulated other comprehensive income,
end of period............................. 431 -- 431 -- 431
------------- ------------ ------------ --------- --------------
Total AXA Equitable's equity, end
of period................................ 13,273 -- 13,273 (77) 13,196
------------- ------------ ------------ --------- --------------
Noncontrolling interest, end of period..... 2,984 -- 2,984 -- 2,984
------------- ------------ ------------ --------- --------------
TOTAL EQUITY, END OF PERIOD............... $ 16,257 $ -- $ 16,257 $ (77) $ 16,180
============= ============ ============ ========= ==============
|
SIX MONTHS ENDED JUNE 30, 2017
-------------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- ---------- -----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
NET INCOME (LOSS)/(1)/......................... $ 1,559 $ -- $ (21) $ 1,538
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Policy charges and fee income............... (1,698) -- 34 (1,664)
Net derivative (gains) losses............... (1,362) -- (54) (1,416)
Amortization and depreciation............... -- 233 62 295
Amortization of deferred sales commission... 17 (17) -- --
Other depreciation and amortization......... (61) 61 -- --
Equity (income) loss from
limited partnerships...................... -- (65) -- (65)
Distribution from joint ventures and
limited partnerships...................... 50 (50) -- --
Changes in:
Reinsurance recoverable................... (194) -- (354) (548)
Deferred policy acquisition costs......... 43 (43) -- --
Capitalization of deferred policy
acquisition costs....................... (63) (235) -- (298)
Future policy benefits.................... 1,303 -- 45 1,348
Current and deferred income taxes......... 204 -- 3 207
Other, net................................ 84 115 -- 199
----------- ----------------- ---------- -----------
Net cash provided by (used in)
operating activities......................... $ (75) $ (1) $ (285) $ (361)
----------- ----------------- ---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments...................... $ -- $ 1,078 $ -- $ 1,078
Payment for the purchase/origination of:
Short-term investments...................... -- (1,599) -- (1,599)
Change in short-term investments............. (508) 522 (14) $ --
Other, net................................... 243 -- (197) 46
----------- ----------------- ---------- -----------
Net cash provided by (used in)
investing activities......................... $ (3,588) $ 1 $ (211) $ (3,798)
----------- ----------------- ---------- -----------
|
F-97
SIX MONTHS ENDED JUNE 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- -----------
(IN MILLIONS)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits................................... $ 4,109 $ -- $ 784 $ 4,893
Withdrawals................................ (1,557) -- (284) (1,841)
Transfer (to) from Separate Accounts..... 767 -- (4) 763
----------- ---------------- --------- -----------
Net cash provided by (used in)
financing activities........................ $ 4,182 $ -- $ 496 $ 4,678
----------- ---------------- --------- -----------
|
/(1)/Net income (loss) includes $231 million in the six months ended June 30,
2017 of the discontinued operations that are not included in net income
(loss) in the Consolidated Statements of Income (Loss).
The following tables present line items in the consolidated statement of
cash flows for the nine months ended September 30, 2017 financial
information that has been affected by the revisions. This information has
been corrected from the information previously presented in the Company's
September 30, 2018 Form 10-Q. For these items, the tables detail the amounts
as previously reported and the impact upon those line items due to the
reclassifications to conform to the current presentation, the adjustment for
the discontinued operation, revisions and the amounts as currently revised.
Prior period amounts have been reclassified to conform to current period
presentation, where applicable, and are summarized in the accompanying
tables. Tables for the other consolidated financial statements as of and for
the three and nine months ended September 30, 2017 are not included as these
revisions were already reflected in the Company's September 30, 2018
Form 10-Q.
NINE MONTHS ENDED SEPTEMBER 30, 2017
-----------------------------------------------------
PRESENTATION
AS REPORTED RECLASSIFICATIONS REVISIONS AS REVISED
----------- ----------------- --------- ----------
(IN MILLIONS)
CONSOLIDATED STATEMENT OF CASH FLOWS:
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Amortization and depreciation............... $ -- $ 432 $ -- $ 432
Other depreciation and amortization......... (67) 67 -- --
Equity (income) loss from
limited partnerships...................... -- (103) -- (103)
Distribution from joint ventures and
limited partnerships...................... 94 (94) -- --
Changes in:
Reinsurance recoverable................... (361) -- (455) (816)
Deferred policy acquisition costs......... 42 (42) -- --
Capitalization of deferred policy
acquisition costs....................... -- (433) -- (433)
Future policy benefits.................... 1,146 -- 168 1,314
Current and deferred income taxes......... 640 -- (389) 251
Other, net................................ 617 197 -- 814
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES........................ $ 994 $ (1) $ (676) $ 317
---------- ----------------- --------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the
sale/maturity/prepayment of:
Short-term investments..................... $ -- $ 1,909 $ -- $ 1,909
Payment for the purchase/origination of:
Short-term investments..................... -- (2,174) -- (2,174)
Change in short-term investments............ (266) 266 -- --
Other, net.................................. (258) -- 203 (55)
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES........................ $ (5,231) $ 1 $ 203 $ (5,027)
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits.................................... $ 5,871 $ -- $ 1,116 $ 6,987
Withdrawals................................. (2,574) -- (244) (2,818)
Transfer (to) from Separate Accounts........ 1,617 -- (399) 1,218
---------- ----------------- --------- ----------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES........................ $ 5,460 $ -- $ 473 $ 5,933
---------- ----------------- --------- ----------
|
F-98
22)SUBSEQUENT EVENTS
AXA Equitable Holdings, Inc. 2019 Omnibus Incentive Plan (the "2019 Plan")
In November 2018, Holdings' Board of Directors and AXA, as Holdings' then
controlling stockholder, adopted the 2019 Plan, which became effective
January 1, 2019, with a total of 5.2 million shares of common stock reserved
for issuance thereunder. On February 25, 2019, the Compensation Committee of
Holdings' Board of Directors approved an amendment to the 2019 Plan
increasing the amount of shares of Holdings' common stock available for
issuance in connection with equity awards granted under the 2019 Plan by two
million shares. The holder of a majority of the outstanding shares of
Holdings' common stock executed a written consent approving the increase on
February 28, 2019.
AXA Secondary Offering of Holdings Common Stock and Holdings Share Buy-back
On March 25, 2019, AXA completed a follow-on secondary offering of
46 million shares of common stock of Holdings and the sale to Holdings of
30 million shares of common stock of Holdings. Following the completion of
this secondary offering and the share buyback by Holdings, AXA owns 48.3% of
the shares of common stock of Holdings. As a result, Holdings is no longer a
majority owned subsidiary of AXA.
Repayment of Senior Surplus Note
On December 28, 2018, the Company, issued a $572 million senior surplus note
due December 28, 2019 to Holdings, which bears interest at a fixed rate of
3.75%, payable semi-annually. The Company repaid this note on March 5, 2019.
F-99
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE I
SUMMARY OF INVESTMENTS -- OTHER THAN INVESTMENTS IN RELATED PARTIES
AS OF DECEMBER 31, 2018
AMOUNT AT
WHICH SHOWN
ON BALANCE
COST/(1)/ FAIR VALUE SHEET
------------- ------------- -------------
(IN MILLIONS)
Fixed Maturities:
U.S. government, agencies and authorities.. $ 13,646 $ 13,335 $ 13,335
State, municipalities and
political subdivisions.................... 408 454 454
Foreign governments........................ 515 519 519
Public utilities........................... 4,614 4,569 4,569
All other corporate bonds.................. 22,076 21,807 21,807
Residential mortgage-backed................ 193 202 202
Asset-backed............................... 600 590 590
Redeemable preferred stocks................ 440 439 439
------------- ------------- -------------
Total fixed maturities....................... 42,492 41,915 41,915
Mortgage loans on real estate/(2)/........... 11,825 11,478 11,818
Real estate held for the production
of income................................. 52 52 52
Policy loans................................. 3,267 3,944 3,267
Other equity investments..................... 1,103 1,144 1,144
Trading securities........................... 15,361 15,166 15,166
Other invested assets........................ 1,554 1,554 1,554
------------- ------------- -------------
Total Investments............................ $ 75,654 $ 75,253 $ 74,916
============= ============= =============
|
/(1)/Cost for fixed maturities represents original cost, reduced by
repayments and write-downs and adjusted for amortization of premiums or
accretion of discount; cost for equity securities represents original
cost reduced by write-downs; cost for other limited partnership
interests represents original cost adjusted for equity in earnings and
reduced by distributions.
/(2)/Balance Sheet amount for mortgage loans on real estate represents
original cost adjusted for amortization of premiums or accretion of
discount and reduced by valuation allowance.
F-100
AXA EQUITABLE LIFE INSURANCE COMPANY
SCHEDULE IV
REINSURANCE/(1)/
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2018, 2017 AND 2016
ASSUMED PERCENTAGE
CEDED TO FROM OF AMOUNT
GROSS OTHER OTHER NET ASSUMED
AMOUNT COMPANIES COMPANIES AMOUNT TO NET
---------- --------- --------- ---------- ----------
(IN MILLIONS)
AS OF DECEMBER 31, 2018
Life insurance in-force...................... $ 390,374 $ 69,768 $ 30,322 $ 350,928 8.6%
========== ========= ========= ========== =========
FOR THE YEAR ENDED DECEMBER 31, 2018
Premiums:
Life insurance and annuities................. $ 787 $ 128 $ 177 $ 836 21.2%
Accident and health.......................... 49 32 9 26 34.6%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 836 $ 160 $ 186 $ 862 21.6%
========== ========= ========= ========== =========
As of December 31, 2017
Life insurance in-force/(2)/................. $ 392,926 $ 73,843 $ 30,300 $ 349,383 8.7%
========== ========= ========= ========== =========
For the year ended December 31, 2017
Premiums:
Life insurance and annuities................. $ 826 $ 135 $ 186 $ 877 21.2%
Accident and health.......................... 54 36 9 27 33.3%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 880 $ 171 $ 195 $ 904 21.6%
========== ========= ========= ========== =========
As of December 31, 2016
Life insurance in-force...................... $ 399,230 $ 78,760 $ 31,722 $ 352,192 9.0%
========== ========= ========= ========== =========
For the year ended December 31, 2016
Premiums:
Life insurance and annuities................. $ 790 $ 135 $ 197 $ 852 23.1%
Accident and health.......................... 60 41 9 28 32.1%
---------- --------- --------- ---------- ---------
Total Premiums............................... $ 850 $ 176 $ 206 $ 880 23.4%
========== ========= ========= ========== =========
|
/(1)/Includes amounts related to the discontinued group life and health
business.
/(2)/Previously reported amounts for "Life insurance in-force -- Ceded to
other companies" of $41,330 million and "Net amount" of $381,896 have
been revised due to an error.
F-101
AXA Equitable Life Insurance Company
SUPPLEMENT DATED MAY 1, 2019 TO PROSPECTUS DATED MAY 1, 2019 FOR INCENTIVE LIFE
OPTIMIZER(R)
This Supplement concerns an additional investment option under our Incentive
Life Optimizer(R) policies. The additional investment option is our Market
Stabilizer Option(R) ("MSO"), which is available to you, if you have received
this Supplement. Any amount that you decide to invest in the MSO would be
invested in one of the "Segments" of the MSO, each of which has a limited
duration (a "Segment Term").
The purpose of this Supplement is solely to add to the May 1, 2019 Incentive
Life Optimizer(R) Prospectus ("Optimizer Prospectus") a very limited amount of
information about the MSO. Much more complete information about the MSO is
contained in a separate Market Stabilizer Option(R) prospectus ("MSO
Prospectus") dated May 1, 2019. All of the information in the Optimizer
Prospectus also continues to remain applicable, except as otherwise provided in
this Supplement (or any other supplement to the Optimizer Prospectus) or in the
MSO Prospectus.
Accordingly, you should read this Supplement in conjunction with the Optimizer
Prospectus (and any other supplements thereto) and the MSO Prospectus. We will
send you another copy of any prospectus or supplement without charge upon
request. Please contact the customer service group referenced in the Optimizer
Prospectus.
NO TRANSFER CHARGES IN CONNECTION WITH MSO
Although we generally reserve the right to impose up to a $25 charge for
transfers under the Incentive Life Optimizer policies, we will never apply this
charge for any transfers into or out of the MSO.
Accordingly, the following language is added to footnote 7 on page 7 of the
Optimizer Prospectus (which appears in the section of that Prospectus entitled
"Tables of policy charges"): Nor will this charge apply to any transfers to or
from any Market Stabilizer Option(R) ("MSO") that we make available as an
investment option under a Policy or any transfers to or from any MSO Holding
Account. Please refer to the separate prospectus for the MSO ("MSO Prospectus")
for information about the MSO and the related "Holding Account."
CHARGES FOR THE MSO
If you allocate any of your policy account value to the MSO, several types of
charges or deductions would or could result. To reflect these, the following
items are added to the chart entitled "Periodic charges other than underlying
trust portfolio operating expenses" on page 6 of the Optimizer Prospectus:
-----------------------------------------------------------------------------------------------------------
OPTIONAL RIDER CHARGES WHEN CHARGE IS DEDUCTED MAXIMUM AMOUNT THAT MAY BE DEDUCTED
-----------------------------------------------------------------------------------------------------------
MARKET STABILIZER OPTION(R)
(MSO)/(1)/
MSO VARIABLE INDEX BENEFIT Upon allocation to MSO Segment 0.75% of policy account value
CHARGE allocated
MSO VARIABLE INDEX SEGMENT Monthly (during any MSO Segment Annual % of your Segment Account
ACCOUNT CHARGE Term) Value 1.65%/(2)/
MSO LOAN SPREAD On each policy anniversary (or on loan 2% for New York and Oregon policies
termination, if earlier) 5% for all other policies/(3)/
MSO EARLY DISTRIBUTION On surrender or other distribution 75% of Segment Account Value/(4)/
ADJUSTMENT (including loan) from an MSO Segment
before the Segment Term's end
-----------------------------------------------------------------------------------------------------------
|
(1)Please refer to the MSO Prospectus for information about the MSO and related
charges and deductions, as well as the meaning of special terms that are
relevant to the MSO (such as "Segment," "Segment Term," "Segment Start
Date," "Segment Account Value" and "Early Distribution Adjustment."
(2)Currently we deduct this charge at a 0.65% annual rate, rather than at the
maximum rate shown.
(3)We charge interest on policy loans but credit you with interest on the
amount of the policy account value we hold as collateral for the loan. The
loan interest spread is the excess of the interest rate we charge over the
interest rate we credit.
(4)The actual amount of Early Distribution Adjustment is determined by a
formula that depends on, among other things, how a specified widely
published stock market index has performed since the Segment Start Date. The
maximum amount of the adjustment would occur if there is a total
distribution at a time when that index had declined to zero. Please refer to
the MSO Prospectus for more information about the index and Early
Distribution Adjustment.
EVM-102 (5/19) #644339
NB/IF Cat # 143821
HOW WE ALLOCATE CHARGES AMONG YOUR INVESTMENT OPTIONS
If you allocate any policy account value to the MSO, our procedures for
allocating the policy's monthly deductions among the investment options you are
using is significantly different than in the absence of the MSO. Accordingly,
the following text is added at the end of the section entitled "How we allocate
charges among your investment options" on page 9 of the Optimizer Prospectus:
Substantially different procedures apply, however, if you allocate any of your
policy account value to a Segment under the MSO investment option. In that
case, for example, you will be required to maintain a certain amount of policy
account value (the Charge Reserve Amount) in the policy's unloaned guaranteed
interest option. (You will not be subject to any Charge Reserve Amount
requirement, however, at any time when none of your policy account value is
invested in any MSO Segment.) The Charge Reserve Amount at the beginning of any
Segment is the estimated amount required to pay all monthly deductions under
your policy (including, but not limited to, charges for the MSO and any
optional riders) for the remainder of the Segment Term.
While any of your policy account value is invested in any Segment, we will take
all of your policy's monthly deductions (including, but not limited to, the
monthly deductions under the MSO and optional riders) solely from the unloaned
guaranteed interest option, rather than from the investment options from which
those charges otherwise would be deducted. If you have insufficient policy
account value in the unloaned guaranteed interest option to pay a monthly
deduction during any Segment Term, we will first take the balance of the
deduction proportionately from any variable investment options (other than any
Segments) that you are then using. But, if insufficient policy account value
remains in any such other investment options to cover the full balance of the
monthly deduction, we will take the remainder of the monthly deduction from any
MSO Segments in which you have account value invested. We will apply these
procedures for allocating deductions for policy charges automatically at any
time you have any amounts investment in a Segment, and no contrary instructions
from you would apply during the Segment Term.
If we have to make any distribution from an MSO Segment, including (among other
things) to pay any surrender or loan proceeds or any charge deduction from a
Segment, there will generally be negative consequences for you. Among other
things, an Early Distribution Adjustment would apply, which would usually
reduce your policy values, in many cases substantially. In some cases, such an
Early Distribution Adjustment may apply without any action on your part. This
could happen, for example, if the Charge Reserve Amount and funds you have
invested in options other than the MSO are insufficient to pay a monthly
deduction (i) due to poor investment performance of those options or (ii) due
to any permitted increases in charges that we have made above their current
rates.
Please refer to the MSO Prospectus for detailed information about the above
procedures.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas
New York, NY 10104
Copyright 2019 AXA Equitable Life Insurance Company. All rights reserved.
Incentive Life Optimizer(R) is issued by
and is a registered trademark of AXA Equitable Life Insurance Company.
2
