485BPOS 1 d104862d485bpos.txt SEPARATE ACCOUNT NO. 10 REGISTRATION NO.333-142453 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------- FORM N-3 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X] PRE-EFFECTIVE AMENDMENT NO. [_] POST-EFFECTIVE AMENDMENT NO. 11 [X] ----------------- AXA EQUITABLE LIFE INSURANCE COMPANY (EXACT NAME OF REGISTRANT) ----------------- AXA EQUITABLE LIFE INSURANCE COMPANY (NAME OF INSURANCE COMPANY) 1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104 (ADDRESS OF INSURANCE COMPANY'S PRINCIPAL EXECUTIVE OFFICES) INSURANCE COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE: (212) 554-1234 ----------------- SHANE DALY VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL AXA EQUITABLE LIFE INSURANCE COMPANY 1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104 (NAME AND ADDRESS OF AGENT FOR SERVICE) ----------------- Approximate Date of Proposed Public Offering: Continuous. IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX): [_]immediately upon filing pursuant to paragraph (b) of Rule 485. [X]On April 29, 2016 pursuant to paragraph (b) of Rule 485. [_]60 days after filing pursuant to paragraph (a) of Rule 485. [_]On (date) pursuant to paragraph (a)(1) of Rule 485. [_]75 days after filing pursuant to paragraph (a)(2) of Rule 485. [_]On (date) pursuant to paragraph (a)(2) of Rule 485. If appropriate, check the following box: [_]This post-effective amendment designates a new effective date for previously filed post-effective amendment. Title of Securities Being Registered: Units of interest in Separate Accounts under variable annuity contracts. ================================================================================ EXPLANATORY NOTE: This Post-Effective Amendment No. 11 ("PEA") to the Registration Statement No. 333-142453 ("Registration Statement") of AXA Equitable Life Insurance Company ("AXA Equitable") and its Separate Account No. 10 is being filed for the purpose of including in the Registration Statement the additions/modifications reflected in the Prospectus and Supplement to the Prospectus. Part C has also been updated pursuant to the requirements of Form N-3. The PEA does not amend any other part of the Registration Statement except as specifically noted herein. Members Retirement Program PROSPECTUS DATED MAY 1, 2016 PLEASE READ AND KEEP THIS PROSPECTUS FOR FUTURE REFERENCE. IT CONTAINS IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PARTICIPATING IN THE PROGRAM OR ALLOCATING AMOUNTS UNDER THE CONTRACT. THIS PROSPECTUS SUPERSEDES ALL PRIOR PROSPECTUSES AND SUPPLEMENTS. YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST WHICH CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. -------------------------------------------------------------------------------- ABOUT THE MEMBERS RETIREMENT PROGRAM The Program provides members of certain groups and other eligible persons several plans for the accumulation of retirement savings on a tax-deferred basis. Through trusts ("Plan Trusts") maintained under these plans, you can allocate contributions among the investment options offered under the Program. The investment options under the Program include: (1) the 3-year Guaranteed Rate Account, the 5-year Guaranteed Rate Account, the Guaranteed Interest Option, and the Money Market Guarantee Account (the "guaranteed options"), and (2) the investment funds (the "Funds") listed in the table below. As previously advised, on July 10, 2015, the 3-year and 5-year Guaranteed Rate Accounts were closed to contributions, transfers and loan repayments. The Money Market Guarantee Account has been closed to new amounts since January 1, 2009. WHAT IS THE MEMBERS RETIREMENT PROGRAM CONTRACT? The Members Retirement Program contract is a group annuity contract issued by AXA EQUITABLE LIFE INSURANCE COMPANY (the "AXA Equitable"). Contributions to the Plan Trusts maintained under the plans will be allocated among our investment funds and guaranteed options in accordance with participant instructions. INVESTMENT OPTIONS ASSET ALLOCATION -------------------------------------------------------------------------------- . All Asset Aggressive-Alt 25/(1)/ . All Asset Growth-Alt 20/(1)/ . All Asset Moderate Growth-Alt 15/(1)/ . AllianceBernstein Balanced . AXA Aggressive Allocation/(2)/ . AXA Conservative Allocation/(2)/ . AXA Conservative-Plus Allocation/(2)/ . AXA Moderate Allocation/(2)/ . AXA Moderate Plus Allocation/(2)/ . Target 2015 Allocation . Target 2025 Allocation . Target 2035 Allocation . Target 2045 Allocation . Target 2055 Allocation -------------------------------------------------------------------------------- CASH EQUIVALENTS -------------------------------------------------------------------------------- . EQ/Money Market . Guaranteed Rate Accounts . Guaranteed Interest Option . Money Market Guarantee Account/(3)/ -------------------------------------------------------------------------------- INTERNATIONAL/GLOBAL STOCKS -------------------------------------------------------------------------------- . AXA Global Equity Managed Volatility . AXA International Core Managed Volatility . EQ/International Equity Index . EQ/MFS International Growth -------------------------------------------------------------------------------- BONDS -------------------------------------------------------------------------------- . Charter/SM/ Multi-Sector Bond . EQ/Intermediate Government Bond . EQ/PIMCO Ultra Short Bond . Multimanager Core Bond -------------------------------------------------------------------------------- LARGE CAP STOCKS -------------------------------------------------------------------------------- . AllianceBernstein Growth Equity . AXA Large Cap Growth Managed Volatility . AXA Large Cap Value Managed Volatility . EQ/Boston Advisors Equity Income . EQ/Calvert Socially Responsible . EQ/Capital Guardian Research . EQ/Equity 500 Index . EQ/Large Cap Growth Index . EQ/T. Rowe Price Growth Stock . EQ/Wells Fargo Omega Growth -------------------------------------------------------------------------------- MID CAP STOCKS -------------------------------------------------------------------------------- . AllianceBernstein Mid Cap Growth . AXA Mid Cap Value Managed Volatility . EQ/Mid Cap Index . EQ/Morgan Stanley Mid Cap Growth -------------------------------------------------------------------------------- SMALL CAP STOCKS -------------------------------------------------------------------------------- . AXA/AB Small Cap Growth . EQ/GAMCO Small Company Value . EQ/Small Company Index -------------------------------------------------------------------------------- SPECIALTY -------------------------------------------------------------------------------- . EQ/GAMCO Mergers and Acquisitions . Multimanager Technology -------------------------------------------------------------------------------- (1)The "All Asset" Portfolios. (2)The "AXA Allocation" Portfolios. (3)The Money Market Guarantee Account is closed to new or additional contributions, transfers and loan repayments. See "Money Market Guarantee Account is closed to new money" under "Investment options" later in this prospectus. The AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are managed by AXA Equitable. Each of the other Funds invests in shares of a corresponding portfolio ("Portfolio") of AXA Premier VIP Trust and EQ Advisors Trust (the "Investment Trusts"). You should also read the prospectuses for the Trusts and keep them for future reference. GUARANTEED OPTIONS. The guaranteed option we offer is the Guaranteed Interest Option. The Guaranteed Interest Option is part of our general account. If you are an existing contract owner, you may still have allocated values to the Money Market Guarantee Account or the 3-Year or 5-Year Guaranteed Rate Account. The 3-year and 5-year Guaranteed Rate Accounts and Money Market Guarantee Account are closed to contributions, transfers and loan repayments. The 3-Year and 5-Year Guaranteed Accounts since July 10, 2015 and the Money Market Guarantee Account since January 1, 2009. The Money Market Guarantee Account has been closed to new contributions since January 1, 2009. See "Investment Options" later in this prospectus. This prospectus is a disclosure document and describes all of the contract's material features, benefits, rights and obligations, as well as other information. The description of the contract's material provisions in this prospectus is current as of the date of this prospectus. If certain material provisions under the contract are changed after the date of this prospectus in accordance with the contract, those changes will be described in a supplement to this prospectus. You should carefully read this prospectus in conjunction with any applicable supplements. THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES 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. #43927 We have filed registration statements relating to this offering with the Securities and Exchange Commission. A Statement of Additional Information ("SAI"), dated May 1, 2016, which is part of one of the registration statements, is available free of charge upon request by writing to us or calling us toll-free. The SAI has been incorporated by reference into this prospectus. The table of contents for the SAI and a request form to obtain the SAI appear at the end of this prospectus. You may also obtain a copy of this prospectus and the SAI through the SEC website at www.sec.gov. The SAI is available free of charge. You may request one by writing to our Processing Office at The Members Retirement Program, c/o AXA Equitable, Box 4875 Syracuse, NY 13221, or calling 1-800-526-2701. Contents of this Prospectus -------------------------------------------------------------------------------- Index of key words and phrases 5 Who is AXA Equitable? 6 How to reach us 7 The Program at a glance -- key features 9 Employer choice of retirement plans 9 Plan features 9 The Contract at a glance -- key features 10 ------------------------------------------------------ FEE TABLE 12 ------------------------------------------------------ Examples 13 Condensed financial information 13 Financial statements of investment funds 13 ------------------------------------------------------ 1. INVESTMENT OPTIONS 14 ------------------------------------------------------ The Funds 14 The Investment Trusts 17 Portfolios of the Investment Trusts 18 Risks of investing in the Funds 23 Additional information about the Funds 24 The guaranteed options 24 ------------------------------------------------------ 2. HOW WE VALUE YOUR ACCOUNT BALANCE IN THE FUNDS 26 ------------------------------------------------------ For amounts in the Funds 26 How we determine the unit value 26 How we value the assets of the Funds 26 ------------- When we use the words "we,""us" and "our," we mean AXA Equitable. Please see the index of key words and phrases used in this prospectus. The index will refer you to the page where particular terms are defined or explained. When we address the reader of this prospectus with words such as "you" and "your," we generally mean the individual plan participant in one or more of the plans available in the Program. For example, "you" and "your" may refer to the individual plan participant when the contract owner has instructed us to take participant in-plan instructions as the contract's owner's instructions under the contract. For example, in "Transfers and access to your account." As explained in certain sections, "you" and "your" may sometimes refer to the employer. For example, "The Program" section of this prospectus is primarily directed at the employer. No person is authorized by AXA Equitable Life Insurance Company to give any information or make any representations other than those contained in this prospectus and the SAI, or in other printed or written materials issued by AXA Equitable. You should not rely on any other information or representation. 3 CONTENTS OF THIS PROSPECTUS ------------------------------------------------------ 3. TRANSFERS AND ACCESS TO YOUR ACCOUNT 28 ------------------------------------------------------ Transfers among investment options 28 Disruptive transfer activity 28 Our Automated Voice Response System and our Internet website 29 Participant loans 29 Choosing benefit payment options 29 Proof of correct information 31 Benefits payable after the death of a participant 31 ------------------------------------------------------ 4. THE PROGRAM 32 ------------------------------------------------------ Summary of plan choices 32 Getting started 32 How to make Program contributions 32 Allocating Program contributions 32 Distributions from the investment options 33 Rules applicable to participant distributions 33 ------------------------------------------------------ 5. CHARGES AND EXPENSES 35 ------------------------------------------------------ Charges for state premium and other applicable taxes 36 Fees paid to associations 36 General information on fees and charges 36 ------------------------------------------------------ 6. TAX INFORMATION 37 ------------------------------------------------------ Buying a contract to fund a retirement arrangement 37 Income taxation of distributions to qualified plan participants 37 In-Plan Roth rollover 38 Impact of taxes to AXA Equitable 38 ------------------------------------------------------ 7. MORE INFORMATION 39 ------------------------------------------------------ About Program changes or terminations 39 IRS disqualification 39 About the separate accounts 39 About the general account 39 Cybersecurity 39 About legal proceedings 40 Financial statements 40 About the trustee 40 Distribution of the contracts 40 Reports we provide and available information 40 Acceptance 40 ----------------------------------------------------------- APPENDIX ----------------------------------------------------------- I -- Condensed financial information I-1 ----------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION Table of contents ----------------------------------------------------------- 4 CONTENTS OF THIS PROSPECTUS Index of key words and phrases -------------------------------------------------------------------------------- Below is an index of key words and phrases used in this prospectus. The index will refer you to the page where particular terms are defined or explained. This index should help you locate more information on the terms used in this prospectus.
PAGE Automated Voice Response System 7 AXA Equitable 6 beneficiary 30 benefit payment options 29 business day 26 contract 1 corresponding portfolio 1 disruptive transfer activity 28 eligible rollover distributions 37 fair valuation 27 GIO 25 GRAs 24 guaranteed options 1,10,24 individually designed plan 32 IRA 38 IRS Pre-Approved Plan 32
PAGE investment funds 1 investment options 14 Investment Trusts 17 market timing 28 Money Market Guarantee Account 1,14,25 Pooled Trust 32 Program 32 Roth 401(k) 9 separate accounts 39 Separate Trust 9 unit value 26 unit 26 3-year GRA 25 5-year GRA 25
5 INDEX OF KEY WORDS AND PHRASES 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 Financial, Inc., which is an indirect wholly owned subsidiary of AXA S.A. ("AXA"), a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, AXA exercises significant influence over the operations and capital structure of AXA Equitable. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Equitable is solely responsible for paying all amounts owed to you under your contract. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $573.0 billion in assets as of December 31, 2015. 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. 6 WHO IS AXA EQUITABLE? HOW TO REACH US You may communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically may be unavailable or delayed. For example, our facsimile 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. In order to avoid delays in processing, please send your correspondence and check to the appropriate location listed below. You can reach us as indicated below to obtain: . Copies of any plans, trusts, adoption agreements, or enrollment or other forms used in the Program. . Unit values and other account information under your plan. . Any other information or materials that we provide in connection with the Program. INFORMATION ON JOINING THE PROGRAM -------------------------------------------------------------------------------- BY PHONE: 1-800-523-1125 (Retirement Program Specialists available weekdays 9 a.m. to 5 p.m., Eastern Time) -------------------------------------------------------------------------------- BY REGULAR MAIL: The Members Retirement Program c/o AXA Equitable Box 4875 Syracuse, NY 13221 -------------------------------------------------------------------------------- BY REGISTERED, CERTIFIED, OR OVERNIGHT DELIVERY: The Members Retirement Program c/o AXA Equitable 100 Madison St., MD-37-12 Syracuse, NY 13202 -------------------------------------------------------------------------------- BY INTERNET: The Members Retirement Program website www.axa.com/mrp, provides information about the Program, as well as several interactive tools and resources that can help answer some of your retirement planning questions. The website also provides an e-mail feature that can be accessed by clicking on either "Contact us" or "Send E-Mail to AXA Equitable." NO PERSON IS AUTHORIZED BY AXA EQUITABLE LIFE INSURANCE COMPANY TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND THE SAI, OR IN OTHER PRINTED OR WRITTEN MATERIAL ISSUED BY AXA EQUITABLE. YOU SHOULD NOT RELY ON ANY OTHER INFORMATION OR REPRESENTATION. INFORMATION ONCE YOU JOIN THE PROGRAM -------------------------------------------------------------------------------- BY PHONE: 1-800-526-2701 (U.S.) or 1-800-526-2701-0 from France, Israel, Italy, Republic of Korea, Switzerland, and the United Kingdom (Account Executives available weekdays 9 a.m. to 5 p.m., Eastern Time). -------------------------------------------------------------------------------- TOLL-FREE AUTOMATED VOICE RESPONSE SYSTEM: By calling 1-800-526-2701 or 1-800-526-2701-0, you may, with your assigned personal security code, use our Automated Voice Response System to: . Transfer between investment options and obtain account balance information. . Change the allocation of future contributions and maturing guaranteed options. . Hear personalized performance information and fund unit values. Our Automated Voice Response System operates 24 hours a day. You may speak with our Account Executives during regular business hours about any matters covered by our Automated Voice Response System. -------------------------------------------------------------------------------- BY INTERNET FOR AMOUNTS IN THE PLAN TRUST By logging on to www.axa.com/mrp, both participants and employers can access certain retirement account information and perform certain financial transactions. Participants can access the information by clicking on Participant Log-In and entering their credentials. Participants can use the Internet to access certain retirement account information and perform certain transactions such as: . Investment performance, current investment fund unit values, and current guaranteed option interest rates. . Transfer assets between investment options and obtain account balance information. . Change the allocation of future contributions. Employers can access information by clicking on Employer Log-In and entering their User ID and Password. Employers can use the Internet to access certain plan level retirement account information and perform certain transactions such as: . Standard and Customizable Reports . Online remittal of Contributions . Online remittal of annual Plan and Participant Census Information . Online Form 5500 preparation and filing (IRS Pre-Approved Plans only) -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITHOUT CONTRIBUTION CHECKS SENT BY REGULAR MAIL: The Members Retirement Program P.O. Box 4875 Syracuse, NY 13221 -------------------------------------------------------------------------------- FOR CORRESPONDENCE WITH CONTRIBUTION CHECKS SENT BY REGULAR MAIL: The Association Members Retirement Program P.O. Box 13678 Newark, NJ 07188-3678 7 WHO IS AXA EQUITABLE? -------------------------------------------------------------------------------- FOR ALL CORRESPONDENCE (WITH OR WITHOUT CONTRIBUTION CHECKS) SENT BY REGISTERED, CERTIFIED, OR OVERNIGHT DELIVERY: AXA Equitable Association Service MD 37-12 100 Madison Street Syracuse, NY 13202 Your correspondence will be picked up at the mailing address noted above and delivered to our Processing Office. Your correspondence, however, is not considered received by us until it is received at our Processing Office. Our Processing Office is located at 100 Madison Street, Syracuse, NY 13202. -------------------------------------------------------------------------------- BY E-MAIL We welcome your comments and questions regarding the Members Retirement Program or website. If you have a comment or suggestion email us from the Program website. Go to www.axa.com/mrp, Participant Log-In and click on "Contact Us". 8 WHO IS AXA EQUITABLE? The Program at a glance -- key features -------------------------------------------------------------------------------- EMPLOYER CHOICE OF RETIREMENT PLANS Our IRS Pre-Approved Plan ("Plan") is a defined contribution prototype or volume submitter plan that can be adopted as a profit-sharing plan (401(k), SIMPLE 401(k), safe harbor 401(k) and Roth 401(k) features are available) and a defined contribution pension plan, or both. A "designated Roth contribution" ("Roth 401(k)") may be added to any of the 401(k) features. It allows eligible employees to designate all or part of their elective deferrals as Roth contributions. See "Tax Information" below. The Plan is designed to comply with the requirements of Section 404(c) of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Program's investment options are the only investment choices under the IRS Pre-Approved Plan. If you maintain your own individually-designed plan, which invests through our Investment Only arrangement, you may use the investment options in the Program through our Pooled Trust. PLAN FEATURES IRS PRE-APPROVED PLAN: . The Program investment options are the only investment choices. . Plan-level and participant-level recordkeeping, benefit payments, tax withholding and reporting provided. . Use of our Separate Trust. . No minimum amount must be invested. . Online Form 5500 reporting. . Automatic updates for law changes (may require employer adoption) and reporting. INVESTMENT ONLY: . Our Pooled Trust is used for investment only. . Recordkeeping services provided for plan assets in Pooled Trust. PLAN CHARGES AND EXPENSES: . Plan and transaction charges vary by type of plan adopted, or by specific transaction. ADDITIONAL FEATURES FOR AMOUNTS HELD IN THE TRUST: . Toll-free number available for transfers and account information. . Internet website access to account information and transactions. . Participant loans (if elected by your employer; some restrictions apply). . Regular statements of account. . Retirement Program Specialist and Retirement Plan Account Manager support. . Daily valuation of accounts.
------------------------------------------------------------------------------- POOLED TRUST FOR INDIVIDUALLY IRS PRE-APPROVED PLAN DESIGNED PLANS ------------------------------------------------------------------------------- WHO SELECTS Participant Participant or Trustee, INVESTMENTS? as specified under your "Plan" ------------------------------------------------------------------------------- ARE LOANS Yes, if permitted AVAILABLE? Yes, if permitted under your "Plan" under your Plan ------------------------------------------------------------------------------- WHEN ARE YOU Benefits depend upon ELIGIBLE FOR Upon retirement, death, disability or the terms of your DISTRIBUTIONS? termination of employment "Plan" -------------------------------------------------------------------------------
9 THE PROGRAM AT A GLANCE -- KEY FEATURES The Contract at a glance -- key features -------------------------------------------------------------------------------- CONTRIBUTIONS: . Can be allocated to any one option or divided among them. . Must be made by check or money order payable to AXA Equitable or remitted online. . Must be sent along with the form acceptable to AXA. . Are credited on the day of receipt if accompanied by properly completed forms. 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. TRANSFERS AMONG INVESTMENT OPTIONS: . Generally, amounts may be transferred among the investment options at any time. . Transfers may be made through our Automated Voice Response System or Program website. . There is no charge for transfers and no tax liability. . Transfers from the Guaranteed Rate Accounts may not be made prior to maturity. CHARGES AND EXPENSES: . Program expense charge assessed against combined value of Program assets in the Trust. . Investment management and accounting fees and other expenses charged on an investment fund-by-fund basis, as applicable. . Record maintenance and report fee. . Enrollment fee. . Indirectly, charges of underlying Portfolios for investment management, 12b-1 fees and other expenses. PROFESSIONAL INVESTMENT MANAGEMENT: Through the investment funds under our contract we make available these professional investment managers who advise or sponsor the different Funds: . AllianceBernstein L.P. . Allianz Global Investors U.S. LLC . AXA Equitable Funds Management Group, LLC . BlackRock Investment Management, LLC . Boston Advisors, LLC . Calvert Investment Management, Inc. . Capital Guardian Trust Company . Diamond Hill Capital Management, Inc. . DoubleLine Capital, LP . EARNEST Partners, LLC . Federated Global Investment Management Corp. . GAMCO Asset Management, Inc. . Loomis, Sayles & Company, L.P. . Massachusetts Financial Services Company d/b/a MFS Investment Management . Morgan Stanley Investment Management, Inc. . Oppenheimer Funds, Inc. . Pacific Investment Management Company LLC . SSgA Funds Management, Inc. . The Dreyfus Corporation . T. Rowe Price Associates, Inc. . Wellington Management Company, LLP . Wells Capital Management, Inc. BENEFIT PAYMENT OPTIONS: . Lump sum. . Installments on a time certain or dollar certain basis including automated minimum distributions if elected. . Fixed annuity benefit payout options as available under your employer's plan. . Variable annuity benefit payout options as available under your employer's plan (described in a separate prospectus for that option). For more detailed information, we urge you to read the contents of this prospectus. This prospectus is not the group annuity contract. Please feel free to call us if you have any questions. GUARANTEED OPTIONS: The four guaranteed options include two Guaranteed Rate Accounts, a Guaranteed Interest Option, and a Money Market Guarantee Account. The Guaranteed Interest Option is part of our general account. The Money Market Guarantee Account and the two Guaranteed Rate Accounts are closed to new or additional contributions, transfers and loan repayments. See "Money Market Guarantee Account is closed to new money" under "Investment Options" later in this prospectus. For more detailed information, we urge you to read the contents of this prospectus, as well as your contract. Please feel free to speak with your financial professional, or call us, if you have any questions. If for any reason you are not satisfied with your contract, you may return it to us for a refund within a certain number of days. TAX ADVANTAGES: . ON EARNINGS No tax on investment earnings until withdrawn. . ON TRANSFERS No tax on internal transfers. 10 THE CONTRACT AT A GLANCE -- KEY FEATURES TAX NOTE: . Because you are purchasing or contributing to an annuity contract to fund a retirement plan qualified under section 401 of the Internal Revenue Code (the "Code") you should be aware that the contract meets Code qualification requirements but does not provide tax deferral benefits beyond those already provided by the Code. You should consider whether the contract's features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the features, benefits and costs of the contract relative to other types of arrangements. (For more information, see "Tax information" later in the prospectus.) 11 THE CONTRACT AT A GLANCE -- KEY FEATURES Fee table -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay periodically during the time that you own the contract, not including the underlying trust portfolio fees and expenses. Each of the charges and expenses is more fully described in "Charges and expenses" later in this prospectus. ----------------------------------------------------------------------------------------------- CHARGES WE DEDUCT FROM THE VALUE IN YOUR INVESTMENT OPTIONS AT THE END OF EACH MONTH EXPRESSED AS AN ANNUAL PERCENTAGE ----------------------------------------------------------------------------------------------- Program expense charge/(1)/ . Prior to May 2, 2016: 1.00% (Maximum) . Effective May 2, 2016: 0.85% (Maximum) ----------------------------------------------------------------------------------------------- CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE END OF EACH CALENDAR QUARTER ----------------------------------------------------------------------------------------------- Record maintenance and report fee $3.75 ----------------------------------------------------------------------------------------------- CHARGES WE MAY DEDUCT FROM YOUR ACCOUNT VALUE ----------------------------------------------------------------------------------------------- Enrollment fee/(2)/ $25 per participant -----------------------------------------------------------------------------------------------
A proportionate share of all fees and expenses paid by a Portfolio that corresponds to any investment fund of the Investment Trusts to which monies are allocated also applies. The table below shows the lowest and highest total operating expenses as of December 31, 2015 charged by any of the Portfolios that apply periodically during the time that you own the contract. These fees and expenses are reflected in the investment funds' net asset value each day. Therefore, they reduce the investment return of the fund and the related 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 prospectuses for the Trusts. ---------------------------------------------------------------------------------------------------- PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS ---------------------------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2015 (expenses that are deducted from Portfolio assets including management fees, 12b-1 fees, service fees, and/or other Lowest Highest expenses)/(/*/)/ 0.61% 2.09% ----------------------------------------------------------------------------------------------------
(*)"Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2015, if applicable, and for the underlying Portfolios. 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, 2017 ("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, 2017. 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 for 2015 after the effect of Expense Lowest Highest Limitation Arrangements/(/**/)/ 0.61% 1.42% ------------------------------------------------------------------------------------------------------
(**)"Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for the underlying portfolios. In addition, the "Lowest" represents the total annual operating expenses of the EQ/Equity 500 Index Portfolio. The "Highest" represents the total annual operating expenses of the All Asset Aggressive-Alt 25 Portfolio. For complete information regarding the Expense Limitation Arrangements see the prospectuses for the underlying Portfolios. ---------------------------------------------------------------------------------- POOLED TRUST EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE ----------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND DIRECT OPERATING AND ACCOUNTING FEE/(3)/ OTHER EXPENSES/(4)/ TOTAL ------------------ -------------------- ----- AllianceBernstein Growth Equity 0.30% .09% .39% AllianceBernstein Mid Cap Growth 0.65% .04% .69% AllianceBernstein Balanced 0.50% .14% .64%
---------------------------------------------------------------------------------- CHARGES WE DEDUCT FROM THE FUNDS EXPRESSED AS AN ANNUAL PERCENTAGE ---------------------------------------------------------------------------------- Other expenses/(4)(5)/ 0.01% ----------------------------------------------------------------------------------
(1)This is the maximum fee; the program expense charge you actually pay may be lower, as discussed later in this prospectus, under "Charges and expenses". (2)This fee is charged to your employer. If your employer fails to pay this charge, we may deduct the amount from subsequent contributions or from your account value. (3)These fees will fluctuate from year to year and from fund to fund based on the assets in each fund. The percentage set forth in the table represents the highest fees incurred by a fund during the fiscal year ended December 31, 2015. These expenses may be higher or lower based on the expenses incurred by a fund during the fiscal year ended December 31, 2016. We receive a portion of this fee for accounting and administrative services. (4)These expenses vary by investment Fund, and will fluctuate from year to year based on actual expenses. The percentage set forth in the table represents the highest other expenses incurred by a Fund during the fiscal year ended December 31, 2015. These expenses may be higher based on the expenses incurred by the Funds during the fiscal year ended December 31, 2016. (5)Effective January 1, 2014, AXA Equitable voluntarily capped "Other Expenses" for the pooled trust Funds at 0.01%. The cap is currently in effect through April 30, 2017, at which time AXA Equitable will opt to continue or remove it. If the cap was not in effect, "Other Expenses" as of December 31, 2015 would have been 0.09%. 12 FEE TABLE EXAMPLES These examples are intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying trust fees and expenses. The examples below show the expenses that a hypothetical contract owner would pay in the situations illustrated and assume the maximum charges applicable under the contract, including the record maintenance and report fee and the enrollment fee. Since there are no surrender charges in connection with amounts invested in the Funds, the expenses are the same whether or not the participant withdraws amounts held in any of the Funds. The charges used in the examples are the maximum expenses. The Guaranteed Rate Accounts, Guaranteed Interest Option, and the Money Market Guarantee Account are not covered by the fee table and examples. However, ongoing expenses do apply to the Guaranteed Rate Accounts, Guaranteed Interest Option, and the Money Market Guarantee Account. These examples should not be considered a representation of past or future expenses for each option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the examples is not an estimate or guarantee of future investment performance. SEPARATE ACCOUNT NO. 66 EXAMPLES: These examples assume that you invest $10,000 in the contract for the time periods indicated and that your investment has a 5% return each year. The example also assumes maximum contract charges and total annual expenses of the Portfolios (before expense limitations) set forth in the previous charts. Although your actual costs may be higher or lower, based on these assumptions, your cost would be:
------------------------------------------------------------------------------------------------------- IF YOU SURRENDER OR DO NOT SURRENDER YOUR CONTRACT AT THE END OF IF YOU ANNUITIZE AT THE END OF THE THE APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD ------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------------------------------------------- INVESTMENT TRUSTS: ------------------------------------------------------------------------------------------------------- (a)assuming maximum fees and expenses of any of the Portfolios $353 $1,024 $1,716 $3,545 $353 $1,024 $1,716 $3,545 ------------------------------------------------------------------------------------------------------- (b)assuming minimum fees and expenses of any of the Portfolios $205 $ 580 $ 977 $2,077 $205 $ 580 $ 977 $2,077 -------------------------------------------------------------------------------------------------------
POOLED SEPARATE ACCOUNT EXAMPLES: These examples assume that you invest $10,000 in the indicated options under the contract for the time periods indicated. All other information and assumptions stated above apply. Although your actual costs may be higher or lower based on these assumptions, your costs would be:
--------------------------------------------------------------------------------------------------------- IF YOU SURRENDER OR DO NOT SURRENDER YOUR CONTRACT AT THE END OF IF YOU ANNUITIZE AT THE END OF THE THE APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD --------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS --------------------------------------------------------------------------------------------------------- AllianceBernsteinGrowth Equity $181 $509 $ 857 $1,827 $181 $509 $ 857 $1,827 --------------------------------------------------------------------------------------------------------- AllianceBernsteinMid Cap Growth $207 $586 $ 987 $2,098 $207 $586 $ 987 $2,098 --------------------------------------------------------------------------------------------------------- AllianceBernsteinBalanced $212 $601 $1,013 $2,152 $212 $601 $1,013 $2,152 ---------------------------------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION Please see Appendix I at the end of this prospectus for condensed financial information concerning the Funds available as of December 31, 2015. FINANCIAL STATEMENTS OF INVESTMENT FUNDS Each of the investment funds is, or is part of, one of our separate accounts as described in "About the separate accounts" under "More information" later in this prospectus. The financial statements of the Pooled Separate Accounts, (AllianceBernstein Growth Equity (Separate Account No. 4), AllianceBernstein Mid Cap Growth (Separate Account No. 3) and AllianceBernstein Balanced (Separate Account No. 10)) and Separate Account No. 66 as well as the financial statements of AXA Equitable are included in the SAI. The financial statements for each Trust are in the SAI for that Trust. 13 FEE TABLE 1. Investment options -------------------------------------------------------------------------------- We offer VARIOUS INVESTMENT OPTIONS under the contract which include: investment funds that we call the "Funds", two Guaranteed Rate Accounts and the Guaranteed Interest Option. The two Guaranteed Rate Accounts and the Money Market Guarantee Account are no longer being sold. See "Money Market Guarantee Account is closed to new money" under "Investment options" later in this prospectus for further information. We reserve the right to discontinue the offering of any Funds and either or both of the currently available Guaranteed Rate Accounts at any time with notice to you. Not all Funds, Guaranteed Rate Accounts and the Guaranteed Interest Option, may be available with all Plans. THE FUNDS Each Fund has a different investment objective. The Funds try to meet their investment objectives by investing either in a portfolio of securities or by holding mutual fund shares. We cannot assure you that any of the Funds will meet their investment objectives. THE ALLIANCEBERNSTEIN GROWTH EQUITY FUND OBJECTIVE The investment objective of the AllianceBernstein Growth Equity Fund is to achieve long-term growth of capital. The Fund seeks to achieve its objective by investing its assets in securities represented in the Russell 1000 Growth Index ("Index"); it is intended that the Fund seeks to approximate the risk profile and investment return of the Index on an annualized basis. INVESTMENT STRATEGIES The Manager will use a replication construction technique to initiate and maintain the portfolio. The Fund seeks to approximate the Russell 1000 Growth Index by owning all securities in the portfolio in the approximate weight each represents in the Index. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (Source: Russell Investment Group). The majority of trading in the Fund each year will take place in June, after the annual reconstitution of the Russell indexes by Russell Investments. The list of constituents is ranked based on total market capitalization as of May 31st of each year, with the actual reconstitution effective in June. Changes to the membership lists are pre-announced and subject to change if any corporate activity occurs or if any new information is received prior to release. Typically, passively managed portfolios are rebalanced when cash is accumulated due to dividend and interest receipts, monies are received from corporate reorganizations (i.e. tenders, mergers and buybacks) and external cash flows. AllianceBernstein may utilize index futures and Exchange Traded Funds to equitize short-term cash balances or effect basis trades to minimize transaction costs. These instruments are used if, in the advisor's opinion, they provide a more cost-effective alternative than transacting in the cash market. The Fund is valued daily. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the funds," later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the AllianceBernstein Growth Equity Fund specifically. THE ALLIANCEBERNSTEIN MID CAP GROWTH FUND OBJECTIVES The AllianceBernstein Mid Cap Growth Fund seeks to achieve long-term capital growth, through a diversified portfolio of equity securities. The account attempts to achieve this objective by investing primarily in the common stock of medium-sized companies which have the potential to grow faster than the general economy and to grow into much larger companies. INVESTMENT STRATEGIES The AllianceBernstein Mid Cap Growth Fund is actively managed to obtain excess return versus the Russell Mid Cap Growth Index. The Fund invests at least 80% of its total assets in the common stock of companies with medium capitalizations at the time of the Fund's investment, similar to the market capitalizations of companies in the Russell Mid Cap Growth Index. Companies whose capitalizations no longer meet this definition after purchase continue to be considered to have a medium market capitalization for purposes of the 80% policy. If deemed appropriate, in order to meet the investment objectives, the Fund may invest in companies in cyclical industries, as well as in securities that the adviser believes are temporarily undervalued. The Fund may also invest in foreign companies without substantial business in the United States. In aggregate, IPO (Initial Public Offerings) investments cannot exceed 5% of the Fund at time of purchase, and no more than 10% due to appreciation. An IPO is an issuer's first offering of a security or class of a security to the public. The Fund may also invest in other types of securities including convertible preferred stocks, convertible debt securities and short-term securities such as corporate notes, and temporarily invest in money market instruments. Additionally, the Fund may invest up to 10% of its total assets in restricted securities. The Fund attempts to generate excess return by taking active risk in security selection by looking for companies with unique growth potential. The Fund may often be concentrated in industries where research resources indicate there is high growth potential. The Fund is valued daily. 14 INVESTMENT OPTIONS RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the AllianceBernstein Mid Cap Growth Fund specifically. Note, however, that due to the AllianceBernstein Mid Cap Growth Fund's investment policies, this Fund provides greater growth potential and greater risk than the AllianceBernstein Growth Equity and AllianceBernstein Balanced Funds. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. THE ALLIANCEBERNSTEIN BALANCED FUND OBJECTIVES The Balanced Account (the "Portfolio") seeks to achieve both appreciation of capital and current income through investment in a diversified Portfolio of publicly traded common stocks, equity-type securities, debt securities and short-term money-market instruments. The Balanced Portfolio will include allocations to three sub-portfolios: Global Structured Equity, US Core Fixed Income and Cash. INVESTMENT STRATEGIES The Global Structured Equity sub-portfolio's objective is to deliver consistent excess returns driven by intensive company research combined with a disciplined portfolio construction process focused on risk control. The sub-portfolio targets long-term growth of capital and to outperform the Morgan Stanley Capital International (MSCI) World Index over any three year period. The Global Structured Equity sub-portfolio invests primarily in equity and equity type securities (such as convertible bonds, convertible preferred and warrants) by using a disciplined investment approach to identify attractive investment candidates based on internally generated research. The Adviser's global industry research analysts are responsible for a primary research universe of companies that are primarily stocks in the MSCI World Index or stocks with similar characteristics that meet the Advisor's investment criteria. The analysts conduct in-depth research on these companies to uncover the most attractive investment opportunities. The sub-portfolio is constructed to maximize exposure to stocks selected by the Advisor's analysts and Portfolio Managers. Individual security weights are a function of the analyst view, ownership within other portfolios, volatility, correlation and index weight. It may also hold securities to control risk and to limit the traditional sources of risk such as style/theme exposures. The result is a combination of stocks in the sub-portfolio with fundamental characteristics, as well as country and sector weightings that approximate those of the benchmark. The sub-portfolio primarily invests its assets in countries included in the MSCI World Index, however the sub-portfolio may not invest in Emerging Market securities that fall into the MSCI Emerging Markets country definition. The sub-portfolio may also utilize currency hedging through the use of currency forwards. For the currency hedging process, the Advisor uses forward contracts that require the purchase or delivery of a foreign currency at some future date. The price paid for the contract is the current price of the foreign currency in U.S. dollars plus or minus an adjustment based on the interest rate differential between the U.S. dollar and the foreign currency. This process utilizes the Advisor's currency multi-factor expected return model based upon: interest rate differentials, current account imbalances, convergence to purchasing-power parity and market momentum. The strategy is implemented using optimization tools that explicitly recognize the link between return potential and risk. The use of currency forwards may only be used for currency hedging purposes. The use of cross hedging may only be utilized with prior approval of AXA Equitable. The US Core Fixed Income's sub-portfolio seeks to consistently add value relative to the broad bond market and core fixed income managers through a research driven, disciplined search for relative value opportunities across the full range of fixed income market sectors. It is actively managed, seeking to primarily add value through a combination of sector and security-specific selections. The Fixed Income process capitalizes on the Advisor's independent fundamental and quantitative research in an effort to add value. The process begins with proprietary expected return forecasts of our quantitative research team, which narrow the investment universe and identify those sectors, securities, countries and currencies that appear most/least attractive. These quantitative forecasts enable us to prioritize the further in-depth analysis of our fundamental credit and economic research teams. These fundamental research teams are focused on forecasting credit and economic fundamentals which confirm or refute our quantitative model findings. Once the quantitative and fundamental forecasts have been made, the Advisor's most senior research and portfolio management professionals meet in "research review" sessions where the forecasts are vetted with the goal of reconciling any differences between quantitative and fundamental projections and determining conviction level in each forecast, and identifying major themes to be implemented in the portfolios. The US Core team then translates the final research recommendations -- the output of the research review sessions -- into an appropriate portfolio risk target (tracking error). The US Core Team budgets this risk across the primary decisions (sector allocation, security selection and yield curve structure) with the use of proprietary portfolio construction tools. The U.S. Core Fixed Income sub-portfolio may invest in a wide variety of publicly traded debt instruments. The sub-portfolio will only purchase US-dollar denominated securities. The sub-portfolio's non-money market securities will consist primarily of the following publicly traded securities: 1) debt securities issued or guaranteed by the United States Government (such as U.S. Treasury securities), its agencies (such as the Government National Mortgage Association), or instrumentalities-(such as the Federal National Mortgage Association), 2) debt securities issued by governmental entities and corporations from developed and developing nations, 3) asset-backed securities, mortgage-related securities (including agency and non-agency fixed, ARM and hybrid pass-throughs, commercial mortgage-backed securities ("CMBS"), mortgage dollar rolls, and up to 5% agency and non-agency collateralized mortgage obligations ("CMOs"), zero coupon bonds, preferred stocks and trust preferred securities and inflation protected securities. At the time in which the account enters into a transaction involving the future delivery of securities which could result in potential economic leverage, the Advisor will maintain cash equivalents or other liquid securities in the portfolio having an amount equal to or greater than the market value of the position/commitment in question. In addition, the Advisor will monitor the account on a periodic basis to ensure that adequate coverage is maintained. The sub-portfolio may purchase 144A securities. The 15 INVESTMENT OPTIONS sub-portfolio may also buy debt securities with equity features, such as conversion or exchange rights or warrants for the acquisition of stock or participations based on revenues, sales or profits. All such securities will be investment grade, at the time of acquisition, i.e., rated BBB or higher by Standard & Poor's Corporation (S&P), Baa or higher by Moody's Investor Services, Inc. (Moody's), BBB or higher by Fitch or if unrated, will be of comparable investment quality. The sub-portfolio may directly invest in investment grade money market instruments. Cash equivalent investments are defined as any security that has a maturity less than one year, including repurchase agreements in accordance with AXA Equitable guidelines. Swap transactions are prohibited. The overall sub-portfolio duration is maintained approximately within 10% of the Barclays Capital Aggregate Bond Index. The Cash sub-portfolio may invest directly in investment-grade money market instruments. The portfolio may invest in cash equivalents in a commingled investment fund managed by the Advisor. ASSET ALLOCATION POLICIES The Portfolio includes an asset allocation with a 60% weighting for equity securities and a 40% weighting for debt securities (see chart below). This asset allocation, which has been adapted to AXA Equitable specifications, is summarized below. The Advisor will allow the relative weightings of the Portfolio's debt and equity components to vary in response to markets, but ordinarily only by +/- 3% of the portfolio. Beyond those ranges, the Advisor may generally rebalance the Portfolio toward the targeted asset allocation, in line with AXA Equitable specifications. The Fund is valued daily.
------------------------------------------------------------------------------ ALLOCATION AXA EQUITABLE'S PORTFOLIO TYPE SUB-PORTFOLIO PORTFOLIO SPECIFIED TARGET ------------------------------------------------------------------------------ Global Equity Global Structured Equity 60% ------------------------------------------------------------------------------ Total fixed and money market 40% instruments: . Fixed . 35%-US Core Fixed Income . Money market instruments . 5%-Cash ------------------------------------------------------------------------------
RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds", below, for information on the risks associated with an investment in the funds generally, and in the AllianceBernstein Balanced Fund specifically. INVESTMENT MANAGER The Board of Directors has delegated responsibility to a committee to authorize or approve investments in the AllianceBernstein Balanced, AllianceBernstein Growth Equity and AllianceBernstein Mid Cap Growth funds (collectively, the "Funds"). That committee may exercise its investment authority directly or it may delegate it, in whole or in part, to a third part investment advisor. The committee has delegated responsibility to AllianceBernstein L.P. ("AllianceBernstein") to manage the Funds. Subject to that committee's broad supervisory authority, AllianceBernstein's investment officers and managers have complete discretion over the assets of the Funds and have been given discretion as to sales and, within specified limits, purchases of stocks, other equity securities and certain debt securities. When an investment opportunity arises that is consistent with the objectives of more than one account, investment opportunities are allocated among accounts in an impartial manner based on certain factors such as investment objective and current investment and cash positions. AllianceBernstein is registered as an investment advisor under the Investment Advisers Act of 1940, as amended. We are the majority-owners of AllianceBernstein, a limited partnership. AllianceBernstein acts as investment adviser to various separate accounts and general accounts of AXA Equitable and other affiliated insurance companies. AllianceBernstein also provides investment management and advisory services to mutual funds, endowment funds, insurance companies, foreign entities, qualified and non-tax qualified corporate funds, public and private pension and profit-sharing plans, foundations and tax-exempt organizations. The following portfolio managers are primarily responsible for the day-to-day management of the portfolios:
-------------------------------------------------------------------------------------------- PORTFOLIO BUSINESS EXPERIENCE FOR PAST FUND MANAGER 5 YEARS -------------------------------------------------------------------------------------------- AllianceBernstein Growth Judith A. De Vivo Portfolio Manager at Equity Fund AllianceBernstein since 1984 -------------------------------------------------------------------------------------------- AllianceBernstein Mid Cap John H. Fogarty Portfolio Manager at Growth Fund AllianceBernstein since 1997 -------------------------------------------------------------------------------------------- AllianceBernstein Balanced Greg Wilensky Portfolio Manager at Fund AllianceBernstein since 1996 Joshua Lisser Portfolio Manager at AllianceBernstein since 1992 Judith A. De Vivo Portfolio Manager at AllianceBernstein since 1984 Ben Sklar Portfolio Manager at AllianceBernstein since 2009 John H. Fogarty Portfolio Manager at AllianceBernstein since 1997 --------------------------------------------------------------------------------------------
The SAI provides additional information about the portfolio managers including compensation, other accounts managed and ownership of securities in the fund. As of December 31, 2015, AllianceBernstein had total assets under management of $467 billion. AllianceBernstein's main office is located at 1345 Avenue of the Americas, New York, New York 10105. PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS A description of the policies and procedures with respect to disclosure of the portfolio securities of the AllianceBernstein Balanced Fund, the AllianceBernstein Growth Equity Fund and the AllianceBernstein Mid Cap Growth Fund is available in the SAI. Generally, portfolio information is available 30 days after the month end free of charge by calling 1 (866) 642-3127. 16 INVESTMENT OPTIONS THE INVESTMENT TRUSTS The Investment 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 Investment 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 Trust shares are reinvested in full. The Board of Trustees of each Investment Trust serves for the benefit of each Investment 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 Investment 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 Investment Trust, which generally accompany this prospectus, or in their respective SAIs, which are available upon request. All funds other than the AllianceBernstein Growth Equity Fund, the AllianceBernstein Mid Cap Growth Fund and the AllianceBernstein Balanced Fund invest in corresponding portfolios of the Investment Trusts. The investment results you will experience in any one of those investment funds will depend on the investment performance of the corresponding portfolios. 17 INVESTMENT OPTIONS PORTFOLIOS OF THE INVESTMENT TRUSTS We offer affiliated 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 manager 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 investment advisers (the "sub-advisers") to carry out the 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 the 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 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 a participant, 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 Portfolios invest in other affiliated Portfolios (the "AXA Fund of Fund Portfolios"). The AXA Fund of Fund Portfolios offer participants a convenient opportunity to invest in other Portfolios that are managed and have been selected for inclusion in the AXA 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 participants and/or suggest that participants 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 AXA Fund of Fund Portfolios than certain other Portfolios available to you under your contract. 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 AXA Managed Volatility Portfolios may utilize a proprietary volatility management strategy developed by AXA FMG (the "AXA volatility management strategy"), and, in addition, certain AXA Fund of Fund Portfolios may invest in Portfolios that utilize this strategy. The AXA 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 AXA volatility management strategy, the manager 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 AXA Managed Volatility Portfolios that include the AXA volatility management strategy as part of their investment objective and/or principal investment strategy, and the AXA Fund of Fund Portfolios that invest in other Portfolios that use the AXA volatility management strategy, are identified below in the chart by a "(check mark) " under the column entitled "Volatility Management." Portfolios that utilize the AXA volatility management strategy (or, in the case of certain AXA Fund of Fund Portfolios, invest in other Portfolios that use the AXA volatility management strategy) are designed to reduce the overall volatility of your account value and provide you with risk-adjusted returns over time. The reduction in volatility helps us manage the risks associated with providing guaranteed benefits during times of high volatility in the equity market. During rising markets, the AXA 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 AXA volatility management strategy or, in the case of the AXA Fund of Fund Portfolios, that invest exclusively in other Portfolios that do not use the AXA 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 AXA volatility management strategy. Please further note that certain other Portfolios may utilize volatility management techniques that differ from the AXA volatility management strategy. Any such 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 AXA 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 18 INVESTMENT OPTIONS 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 AXA Ultra Conservative Strategy 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 INVESTMENT MANAGER (OR SUB- TRUST ADVISER(S), VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT ------------------------------------------------------------------------------------------------------------------------ AXA AGGRESSIVE B Seeks to achieve long-term capital . AXA Equitable (check mark) ALLOCATION/(1)/ appreciation. Funds Management Group, LLC ------------------------------------------------------------------------------------------------------------------------ AXA CONSERVATIVE B Seeks to achieve a high level of current . AXA Equitable (check mark) ALLOCATION/(1)/ income. Funds Management Group, LLC ------------------------------------------------------------------------------------------------------------------------ AXA B Seeks to achieve current income and . AXA Equitable (check mark) CONSERVATIVE-PLUS growth of capital, with a greater emphasis Funds Management ALLOCATION/(1)/ on current income. Group, LLC ------------------------------------------------------------------------------------------------------------------------ AXA MODERATE B Seeks to achieve long-term capital . AXA Equitable (check mark) ALLOCATION/(1)/ appreciation and current income. Funds Management Group, LLC ------------------------------------------------------------------------------------------------------------------------ AXA MODERATE-PLUS B Seeks to achieve long-term capital . AXA Equitable (check mark) ALLOCATION/(1)/ appreciation and current income, with a Funds Management greater emphasis on capital appreciation. Group, LLC ------------------------------------------------------------------------------------------------------------------------ CHARTER/SM/ B Seeks to achieve high total return through . AXA Equitable MULTI-SECTOR BOND a combination of current income and Funds Management capital appreciation. Group, LLC ------------------------------------------------------------------------------------------------------------------------ TARGET 2015 B Seeks the highest total return over time . AXA Equitable ALLOCATION consistent with its asset mix. Total return Funds Management includes capital growth and income. Group, LLC ------------------------------------------------------------------------------------------------------------------------ TARGET 2025 B Seeks the highest total return over time . AXA Equitable ALLOCATION consistent with its asset mix. Total return Funds Management includes capital growth and income. Group, LLC ------------------------------------------------------------------------------------------------------------------------ TARGET 2035 B Seeks the highest total return over time . AXA Equitable ALLOCATION consistent with its asset mix. Total return Funds Management includes capital growth and income. Group, LLC ------------------------------------------------------------------------------------------------------------------------ TARGET 2045 B Seeks the highest total return over time . AXA Equitable ALLOCATION consistent with its asset mix. Total return Funds Management includes capital growth and income. Group, LLC ------------------------------------------------------------------------------------------------------------------------ TARGET 2055 B Seeks the highest total return over time . AXA Equitable ALLOCATION consistent with its asset mix. Total return Funds Management includes capital growth and income. Group, LLC
------------------------------------------------------------------------------------------------------------------- INVESTMENT MANAGER (OR SUB- EQ ADVISORS TRUST ADVISER(S), VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT ------------------------------------------------------------------------------------------------------------------- ALL ASSET IB Seeks long-term capital appreciation and . AXA Equitable AGGRESSIVE - ALT current income, with a greater emphasis Funds Management 25/(2)/ on capital appreciation. Group, LLC ------------------------------------------------------------------------------------------------------------------- ALL ASSET GROWTH - IB Seeks long-term capital appreciation and . AXA Equitable ALT 20/(2)/ current income. Funds Management Group, LLC ------------------------------------------------------------------------------------------------------------------- ALL ASSET IB Seeks long-term capital appreciation and . AXA Equitable MODERATE GROWTH - current income, with a greater emphasis Funds Management ALT 15/(2)/ on current income Group, LLC -------------------------------------------------------------------------------------------------------------------
19 INVESTMENT OPTIONS
------------------------------------------------------------------------------------------------------------------------ INVESTMENT MANAGER (OR SUB- EQ ADVISORS TRUST ADVISER(S), VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT ------------------------------------------------------------------------------------------------------------------------ AXA/AB SMALL CAP IB Seeks to achieve long-term growth of . AllianceBernstein GROWTH capital. L.P. ------------------------------------------------------------------------------------------------------------------------ AXA GLOBAL EQUITY IB Seeks to achieve long-term capital . AXA Equitable (check mark) MANAGED VOLATILITY appreciation with an emphasis on risk- Funds Management adjusted returns and managing volatility in Group, LLC the Portfolio. . BlackRock Investment Management, LLC . Morgan Stanley Investment Management Inc. . OppenheimerFunds, Inc. ------------------------------------------------------------------------------------------------------------------------ AXA INTERNATIONAL IB Seeks to achieve long-term growth of . AXA Equitable (check mark) CORE MANAGED capital with an emphasis on risk-adjusted Funds Management VOLATILITY returns and managing volatility in the Group, LLC Portfolio. . BlackRock Investment Management, LLC . EARNEST Partners, LLC . Federated Global Investment Management Corp. . Massachusetts Financial Services Company d/b/a MFS Investment Management ------------------------------------------------------------------------------------------------------------------------ AXA LARGE CAP IB Seeks to provide long-term capital growth . AXA Equitable (check mark) GROWTH MANAGED with an emphasis on risk-adjusted returns Funds Management VOLATILITY and managing volatility in the Portfolio. Group, LLC . BlackRock Investment Management, LLC . Loomis, Sayles & Company, L.P. . T. Rowe Price Associates, Inc. . Wells Capital Management, Inc. ------------------------------------------------------------------------------------------------------------------------ AXA LARGE CAP VALUE IB Seeks to achieve long-term growth of . AllianceBernstein (check mark) MANAGED VOLATILITY capital with an emphasis on risk-adjusted L.P. returns and managing volatility in the . AXA Equitable Portfolio. Funds Management Group, LLC . BlackRock Investment Management, LLC . Massachusetts Financial Services Company d/b/a MFS Investment Management ------------------------------------------------------------------------------------------------------------------------ AXA MID CAP VALUE IB Seeks to achieve long-term capital . AXA Equitable (check mark) MANAGED VOLATILITY appreciation with an emphasis on risk- Funds Management adjusted returns and managing volatility in Group, LLC the Portfolio. . BlackRock Investment Management, LLC . Diamond Hill Capital Management, Inc. . Wellington Management Company, LLP ------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS IB Seeks a combination of growth and income . Boston Advisors, EQUITY INCOME to achieve an above-average and LLC consistent total return. ------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY IB Seeks to achieve long-term capital . Calvert RESPONSIBLE appreciation. Investment Management Inc. ------------------------------------------------------------------------------------------------------------------------
20 INVESTMENT OPTIONS
------------------------------------------------------------------------------------------------------------------------- INVESTMENT MANAGER (OR SUB- EQ ADVISORS TRUST ADVISER(S), VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT ------------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN IB Seeks to achieve long-term growth of . Capital Guardian RESEARCH capital. Trust Company ------------------------------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX IB Seeks to achieve a total return before . AllianceBernstein expenses that approximates the total return L.P. performance of the Standard & Poor's 500 Composite Stock Price Index, including reinvestment of dividends, at a risk level consistent with that of the Standard & Poor's 500 Composite Stock Price Index. ------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO MERGERS IB Seeks to achieve capital appreciation. . GAMCO Asset AND ACQUISITIONS Management, Inc. ------------------------------------------------------------------------------------------------------------------------- EQ/GAMCO SMALL IB Seeks to maximize capital appreciation. . GAMCO Asset COMPANY VALUE Management, Inc. ------------------------------------------------------------------------------------------------------------------------- EQ/INTERMEDIATE IB Seeks to achieve a total return before . AXA Equitable GOVERNMENT BOND expenses that approximates the total return Funds Management performance of the Barclays U.S. Group, LLC Intermediate Government Bond Index, . SSgA Funds including reinvestment of dividends, at a risk Management, Inc. level consistent with that of the Barclays U.S. Intermediate Government Bond Index. ------------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL IA Seeks to achieve a total return (before . AllianceBernstein EQUITY INDEX expenses) that approximates the total L.P. return performance of a composite index 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/LARGE CAP GROWTH IB Seeks to achieve a total return before . AllianceBernstein INDEX expenses that approximates the total L.P. return performance of the Russell 1000(R) Growth Index, including reinvestment of dividends at a risk level consistent with that of the Russell 1000(R) Growth Index. ------------------------------------------------------------------------------------------------------------------------- EQ/MFS IB Seeks to achieve capital appreciation. . Massachusetts INTERNATIONAL Financial GROWTH Services Company d/b/a MFS Investment Management ------------------------------------------------------------------------------------------------------------------------- EQ/MID CAP INDEX IB Seeks to achieve a total return before . SSgA Funds expenses that approximates the total Management, Inc. return performance of the Standard & Poor's Mid Cap 400 Index, including reinvestment of dividends, at a risk level consistent with that of the Standard & Poor's Mid Cap 400 Index. ------------------------------------------------------------------------------------------------------------------------- EQ/MONEY IA Seeks to obtain a high level of current . The Dreyfus MARKET/(/*/)/ income, preserve its assets and maintain Corporation liquidity. ------------------------------------------------------------------------------------------------------------------------- EQ/MORGAN STANLEY IB Seeks to achieve capital growth. . Morgan Stanley MID CAP GROWTH Investment Management Inc. ------------------------------------------------------------------------------------------------------------------------- EQ/PIMCO ULTRA IB Seeks to generate a return in excess of . Pacific SHORT BOND traditional money market products while Investment maintaining an emphasis on preservation Management of capital and liquidity. Company LLC -------------------------------------------------------------------------------------------------------------------------
21 INVESTMENT OPTIONS
---------------------------------------------------------------------------------------------------------------------- INVESTMENT MANAGER (OR SUB- EQ ADVISORS TRUST ADVISER(S), VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT ---------------------------------------------------------------------------------------------------------------------- EQ/SMALL COMPANY IB Seeks to replicate as closely as possible . AllianceBernstein INDEX (before expenses) the total return of the L.P. Russell 2000(R) Index. ---------------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE IB Seeks to achieve long-term capital . T. Rowe Price GROWTH STOCK appreciation and secondarily, income. Associates, Inc. ---------------------------------------------------------------------------------------------------------------------- EQ/WELLS FARGO IB Seeks to achieve long-term capital growth. . Wells Capital OMEGA GROWTH Management, Inc. ---------------------------------------------------------------------------------------------------------------------- MULTIMANAGER CORE IB Seeks to achieve a balance of high current . AXA Equitable BOND income and capital appreciation, consistent Funds Management with a prudent level of risk. Group, LLC . BlackRock Financial Management, Inc. . DoubleLine Capital LP . Pacific Investment Management Company LLC . SSgA Funds Management, Inc. ---------------------------------------------------------------------------------------------------------------------- MULTIMANAGER IB Seeks to achieve long-term growth of . AXA Equitable TECHNOLOGY capital. Funds Management Group, LLC . Allianz Global Investors U.S. LLC . SSgA Funds Management, Inc. . Wellington Management Company, LLP ----------------------------------------------------------------------------------------------------------------------
(1)The "AXA Allocation" Portfolios. (2)The "All Asset" Portfolios. (*)The Board of Trustees of EQ Advisors Trust has approved changes to the Portfolio's principal investment strategies that will allow the Portfolio to operate as a "government money market fund." Effective April 1, 2016, 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. YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE PORTFOLIOS CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN COPIES OF INVESTMENT TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-526-2701. 22 INVESTMENT OPTIONS RISKS OF INVESTING IN THE FUNDS All of the Funds invest in securities of one type or another. You should be aware that any investment in securities carries with it a risk of loss, and you could lose money investing in the Funds. The different investment objectives and policies of each Fund may affect the return of each Fund and the risks associated with an investment in that Fund. Additionally, market and financial risks are inherent in any securities investment. By market risks, we mean factors which do not necessarily relate to a particular issuer, but affect the way markets, and securities within those markets, perform. Market risks can be described in terms of volatility, that is, the range and frequency of market value changes. Market risks include such things as changes in interest rates, general economic conditions and investor perceptions regarding the value of debt and equity securities. By financial risks we mean factors associated with a particular issuer which may affect the price of its securities, such as its competitive posture, its earnings and its ability to meet its debt obligations. The risk factors associated with an investment in the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are described below. See the SAI for additional information regarding certain investment techniques used by these Funds. See the applicable Trust prospectus for risks and factors and investment techniques associated with an investment in all funds other than the AllianceBernstein Growth Equity Fund, the AllianceBernstein Mid Cap Growth Fund and the AllianceBernstein Balanced Fund. Important factors associated with an investment in the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are discussed below. COMMON STOCK. Investing in common stocks and related securities involves the risk that the value of the stocks or related securities purchased will fluctuate. These fluctuations could occur for a single company, an industry, a sector of the economy, or the stock market as a whole. These fluctuations could cause the value of the Fund's investments -- and, therefore, the value of the Fund's units -- to fluctuate. SECURITIES OF MEDIUM AND SMALLER SIZED COMPANIES. The AllianceBernstein Mid Cap Growth Fund invests primarily in the securities of medium sized companies. The AllianceBernstein Balanced Fund may also make these investments, as well as investments in smaller sized companies. The securities of small and medium sized, less mature, lesser known companies involve greater risks than those normally associated with larger, more mature, well-known companies. Therefore, consistent earnings may not be as likely in small companies as in large companies. The Funds also run a risk of increased and more rapid fluctuations in the value of their investments in securities of small or medium sized companies. This is due to the greater business risks of small size and limited product lines, markets, distribution channels, and financial and managerial resources. Historically, the price of small (less than $1 billion) and medium (between $1 and $20 billion) capitalization stocks and stocks of recently organized companies have fluctuated more than the larger capitalization stocks and the overall stock market. One reason is that small- and medium-sized companies have a lower degree of liquidity in the markets for their stocks. NON-EQUITY SECURITIES. Investing in non-equity securities, such as bonds and debentures, involves the risk that the value of these securities held by the AllianceBernstein Balanced Fund -- and, therefore, the value of the Fund's units -- will fluctuate with changes in interest rates (interest rate risk) and the perceived ability of the issuer to make interest or principal payments on time (credit risk). Moreover, convertible securities which may be in the AllianceBernstein Mid Cap Growth, and AllianceBernstein Balanced Funds, such as convertible preferred stocks or convertible debt instruments, contain both debt and equity features, and may lose significant value in periods of extreme market volatility. FOREIGN INVESTING. Investing in securities of foreign companies that may not do substantial business in the U.S. involves additional risks, including risk of loss from changes in the political or economic climate of the countries in which these companies do business. Foreign currency fluctuations, exchange controls or financial instability could cause the value of the AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds' foreign investments to fluctuate. Additionally, foreign accounting, auditing and disclosure standards may differ from domestic standards, and there may be less regulation in foreign countries of stock exchanges, brokers, banks, and listed companies than in the United States. As a result, the Funds' foreign investments may be less liquid and their prices may be subject to greater fluctuations than comparable investments in securities of U.S. issuers. RESTRICTED SECURITIES. Investing in restricted securities involves additional risks because these securities generally (1) are less liquid than non-restricted securities and (2) lack readily available market quotations. Accordingly, the AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds may be unable to quickly sell their restricted security holdings at fair market value. The following discussion describes investment risks unique to either the AllianceBernstein Growth Equity Fund, AllianceBernstein Mid Cap Growth Fund or the AllianceBernstein Balanced Fund. INVESTMENT POLICIES. Due to the AllianceBernstein Mid Cap Growth Fund's investment policies, this Fund provides greater growth potential and may have greater risk than other equity offerings. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. DEBT SECURITIES SUBJECT TO PREPAYMENT RISKS. Mortgage-related securities and certain collateralized mortgage obligations, asset- backed securities and other debt instruments in which the AllianceBernstein Balanced Fund may invest are subject to prepayments prior to their stated maturity. The Fund, however, is unable to accurately predict the rate at which prepayments will be made, as that rate may be affected, among other things, by changes in generally prevailing market interest rates. If prepayments occur, the Fund suffers the risk that it will not be able to reinvest the proceeds at as high a rate of interest as it had previously been receiving. Also, the Fund will incur a loss to the extent that prepayments are made for an amount that is less than the value at which the security was then being carried by the fund. Moreover, securities that may be prepaid tend to increase in value less during times of declining interest rates, and to decrease in value more during times of increasing interest rates, than do securities that are not subject to prepayment. 23 INVESTMENT OPTIONS WHEN-ISSUED AND DELAYED DELIVERY SECURITIES. The AllianceBernstein Balanced and AllianceBernstein Mid Cap Growth Funds may purchase and sell securities on a when-issued or delayed delivery basis. In these transactions, securities are purchased or sold by a Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price or yield to the Fund at the time of entering into the transaction. The Fund will sell on a forward settlement basis only securities it owns or has the right to acquire. HEDGING TRANSACTIONS. The AllianceBernstein Balanced Fund may engage in transactions which are designed to protect against potential adverse price movements in securities owned or intended to be purchased by the Fund. RISKS ASSOCIATED WITH THE ALLIANCEBERNSTEIN BALANCED FUND. Bonds rated below A by S&P, Moody's or Fitch are more susceptible to adverse conditions or changing circumstances than those rated A or higher; but we regard these lower rated bonds as having adequate capacity to pay principal and interest. RISKS ASSOCIATED WITH THE ALLIANCEBERNSTEIN GROWTH EQUITY FUND While the objective of the Fund is to approximate the return of the Russell 1000 Growth Index, the actual performance of the account may deviate from the Index as a result of transaction costs, equitization of cash, security price deviations, investment management fees, operating expense charges such as custody and audit fees, any potential future exchange trading limits, and internal stock restrictions, all of which affects the Fund but not the Index. This deviation is commonly referred to as "tracking error". The account attempts to minimize these deviations through a management process which strives to minimize transactions costs, keep the account fully invested and maintain a portfolio with characteristics that are systematically the same as those of the Russell 1000 Growth Index. ADDITIONAL INFORMATION ABOUT THE FUNDS CHANGE OF INVESTMENT OBJECTIVES We can change the investment objectives of the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds if the New York Department of Financial Services approves the change. The investment objectives of the Portfolios of the Investment Trusts may be changed by the Board of Trustees of the applicable Investment Trust without the approval of shareholders. (See "Voting rights" below.) VOTING RIGHTS No voting rights apply to any of the separate accounts or to the Guaranteed Options. However, as the owner of shares of the Investment Trusts, we have the right to vote on certain matters involving the Portfolios, such as: . the election of trustees; . the formal approval of independent public accounting firms selected for each Investment Trust; or . any other matters described in each prospectus for the Investment Trusts or requiring a shareholders' vote under the Investment Company Act of 1940. We will give contract owners/participants the opportunity to instruct us how to vote the number of shares attributable to their contracts if a shareholder vote is taken. If we do not receive instructions in time from all contract owners/participants, we will vote the shares of a portfolio for which no instructions have been received in the same proportion as we vote shares of that portfolio for which we have received instructions. We will also vote any shares that we are entitled to vote directly because of amounts we have in a portfolio in the same proportions that contract owners/participants vote. One effect of proportional voting is that a small number of contract owners may determine the outcome of a vote. The Investment Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's annuity and/or variable life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contract owners arising out of these arrangements. However, the Board of Trustees or Directors of each Investment 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 contract owners, we will see to it that appropriate action is taken to do so. The voting rights we describe in this prospectus are created under applicable federal securities laws. To the extent that those laws or the regulations published under those laws eliminate the necessity to submit matters for approval by persons having voting rights in separate accounts of insurance companies, we reserve the right to proceed in accordance with those laws or regulations. THE GUARANTEED OPTIONS We offer one guaranteed option: . the Guaranteed Interest Option ("GIO"); We also have three other guaranteed options for existing contract owners who have allocated values to them: . two Guaranteed Rate Accounts (GRAs); and . our Money Market Guarantee Account. The two GRAs and the Money Market Guarantee Account are no longer being sold. We guarantee the amount of your contributions to the guaranteed options and the interest credited. Contributions to the guaranteed options become part of our general account, which supports all of our insurance and annuity guarantees as well as our general obligations. The general account, as part of our insurance and annuity operations, is subject to regulation and supervision by the New York Department of Financial Services and to insurance laws and regulations of all jurisdictions in which we are authorized to do business. Your investment in a guaranteed option is not regulated by the Securities and Exchange Commission, and the following discussion about the guaranteed options has not been reviewed by the staff of the SEC. The discussion, however, is subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of the statements made. 24 INVESTMENT OPTIONS GUARANTEED RATE ACCOUNTS On July 10, 2015, the 3-year GRA and 5-year GRA were closed to contributions, transfers and loan repayments. You can maintain any amounts had invested in the Guaranteed Rate Accounts, as of that date. Any amounts that remain in the Guaranteed Rate Accounts will continue to earn interest at the quoted interest rate until maturity or withdrawn. At maturity amounts in the Guaranteed Rate Accounts will be invested as per your GRA maturity allocation election on file. RESTRICTIONS ON WITHDRAWALS AND TRANSFERS . You may not transfer from one GRA to another or from a GRA to another investment option except at maturity. . Withdrawals may be made from a GRA before maturity if: you are disabled; you attain age 70 1/2; you die; or you are not self- employed and your employment is terminated. . You may not remove GRA funds to take a loan. . Certain other withdrawals prior to maturity are permitted. See "Procedures for withdrawals, distributions and transfers from a GRA" in the SAI. GUARANTEED INTEREST OPTION The Guaranteed Interest Option ("GIO") is part of our general account, pays interest at guaranteed rates, and provides an investment option in which the value of the principal will not fluctuate. We discuss our general account under "More information" later in this Prospectus. We credit interest daily to amounts in the GIO. We set interest rates monthly. All interest rates are effective annual rates net of program expense and other expenses. Your lifetime minimum rate is 1.00%. The current interest rate will never be less than the lifetime minimum rate. Transfers from the GIO to other investment options are permitted. Withdrawals are permitted from the GIO, subject to a market value adjustment if plan-initiated. MONEY MARKET GUARANTEE ACCOUNT IS CLOSED TO NEW MONEY On January 1, 2009, the Money Market Guarantee Account was closed to new contributions and loan repayments. Any amounts you have in the Money Market Guarantee Account can remain in your account, but you can no longer transfer or contribute any additional amounts to your account. Any amounts that remained in your Money Market Guarantee Account will continue to accrue interest as described below. You can always transfer amounts out of the Money Market Guarantee Account to another investment option, or take distributions from the Money Market Guarantee Account, but you can no longer transfer any such amounts back into the Money Market Guarantee Account. MONEY MARKET GUARANTEE ACCOUNT All contributions you made prior to January 1, 2009, to the Money Market Guarantee Account will continue to earn the same rate of interest. The rate changes monthly and is expressed as an effective annual rate, reflecting daily compounding and the deduction of applicable asset-based fees and charges. While the rate changes monthly, it will never be less than 1%. The rate will approximate current market rates for money market mutual funds minus applicable fees and charges. You may call our Automated Voice Response System or access our website to obtain the current monthly rate. Your balance in the Money Market Guarantee Account at the end of the month automatically begins receiving interest at the new rate until transferred or withdrawn. DISTRIBUTIONS, WITHDRAWALS, AND TRANSFERS. You may effect distributions, withdrawals and transfers out of your Money Market Guarantee Account, without penalty, at any time permitted under your plan. We do not impose penalties on distributions, withdrawals or transfers out of your Money Market Guarantee Account only. 25 INVESTMENT OPTIONS 2. How we value your account balance in the Funds -------------------------------------------------------------------------------- FOR AMOUNTS IN THE FUNDS When you invest in a Fund, your contribution or transfer is used to purchase "units" of that Fund. The unit value on any day reflects the value of the Fund's investments for the day and the charges and expenses we deduct from the Fund. We calculate the number of units you purchase by dividing the amount you invest by the unit value of the Fund as of the close of business on the day we receive your contribution or transfer request. A contribution or a transfer request will be effective on the business day we receive the contribution or the transfer request. Contributions and transfer requests received after the end of a business day will be credited the next business day. We will confirm all transfers in writing. -------------------------------------------------------------------------------- OUR "BUSINESS DAY" IS GENERALLY ANY DAY THE NEW YORK STOCK EXCHANGE 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. FOR MORE INFORMATION ABOUT OUR BUSINESS DAY AND OUR PRICING OF TRANSACTIONS, PLEASE SEE "DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR." -------------------------------------------------------------------------------- On any given day, your account value in any Fund equals the number of the Fund's units credited to your account, multiplied by that day's value for one Fund unit. In order to take deductions from any Fund, we cancel units having a value equal to the amount we need to deduct. Otherwise, the number of your Fund units of any Fund does not change unless you make additional contributions, make a withdrawal, effect a transfer, or request some other transaction that involves moving assets into or out of that Fund option. HOW WE DETERMINE THE UNIT VALUE We determine the Unit Value at the end of each business day. The Unit Value for each Fund is determined by first calculating a gross unit value reflecting only investment performance and then adjusting it for Fund expenses to obtain the Fund Unit Value. We calculate the gross unit value by multiplying the gross unit value for the preceding business day by the net investment factor for that subsequent business day and, for the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds, then deducting audit and custodial fees. We calculate the net investment factor as follows: . First, we take the value of the Fund's assets at the close of business on the preceding business day. . Next, we add the investment income and capital gains, realized and unrealized, that are credited to the assets of the Fund during the business day for which we are calculating the net investment factor. . Then we subtract the capital losses, realized and unrealized, charged to the Fund during that business day. . Finally, we divide this amount by the value of the Fund's assets at the close of the preceding business day. The Fund Unit Value is calculated on every business day by multiplying the Fund Unit Value for the last business day of the previous month by the net change factor for that business day. The net change factor for each business day is equal to (a) minus (b) where: (a)is the gross unit value for that business day divided by the gross unit value for the last business day of the previous month; and (b)is the charge to the Fund for that month for the daily accrual of fees and expenses times the number of days since the end of the preceding month. The value of the investments that Separate Account No. 66 has in the following Funds: AXA Global Equity Managed Volatility, AXA International Core Managed Volatility, AXA Large Cap Growth Managed Volatility, AXA Large Cap Value Managed Volatility, AXA Mid Cap Value Managed Volatility, All Asset Aggressive-Alt 25, All Asset Growth-Alt 20, All Asset Moderate Growth-Alt 15, AXA Aggressive Allocation, AXA Conservative Allocation, AXA Conservative-Plus Allocation, AXA Moderate Allocation, AXA Moderate-Plus Allocation, Multimanager Core Bond, Charter/SM/ Multi-Sector Bond, Multimanager Technology, Target 2015 Allocation, Target 2025 Allocation, Target 2035 Allocation, Target 2045 Allocation, EQ/AB Small Cap Growth, EQ/Boston Advisors Equity Income, EQ/Calvert Socially Responsible, EQ/Capital Guardian Research, EQ/Equity 500 Index, EQ/International Equity Index, EQ/GAMCO Mergers and Acquisitions, EQ/GAMCO Small Company Value, EQ/Intermediate Government Bond, EQ/Large Cap Growth Index, EQ/Mid Cap Index, EQ/MFS International Growth, EQ/Money Market, EQ/Morgan Stanley Mid Cap Growth, EQ/PIMCO Ultra Short Bond, EQ/Small Company Index, EQ/T. Rowe Price Growth Stock and EQ/Wells Fargo Omega Growth is calculated by multiplying the number of shares held by Separate Account No. 66 in each portfolio by the net asset value per share of that portfolio determined as of the close of business on the same day as the respective Unit Values of each of the foregoing Funds are determined. HOW WE VALUE THE ASSETS OF THE FUNDS The assets of the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are valued as follows: . Common stocks listed on national securities exchanges are valued at the last sale price. If on a particular day there is no sale, the stocks are valued at the latest available bid price reported on a composite tape. Other unlisted securities reported on the NASDAQ Stock Exchange are valued at inside (highest) quoted bid prices. . Foreign securities not traded directly, or in ADR form, in the United States, are valued at the last sale price in the local currency on an exchange in the country of origin. Foreign currency is converted into dollars at current exchange rates. . United States Treasury securities and other obligations issued or guaranteed by the United States Government, its agencies or instrumentalities are valued at representative quoted prices. . Long-term publicly traded corporate bonds (i.e., maturing in more than one year) are valued at prices obtained from a bond 26 HOW WE VALUE YOUR ACCOUNT BALANCE IN THE FUNDS pricing service of a major dealer in bonds when such prices are available; however, in circumstances where it is deemed appropriate to do so, an over-the-counter or exchange quotation may be used. . Convertible preferred stocks listed on national securities exchanges are valued at their last sale price or, if there is no sale, at the latest available bid price. . Convertible bonds and unlisted convertible preferred stocks are valued at bid prices obtained from one or more major dealers in such securities; where there is a discrepancy between dealers, values may be adjusted based on recent premium spreads to the underlying common stock. . Short-term debt securities that mature in more than 60 days are valued at representative quoted prices. Short-term debt securities that mature in 60 days or less are valued at amortized cost, which approximates market value. . Option contracts listed on organized exchanges are valued at last sale prices or closing asked prices, in the case of calls, and at quoted bid prices, in the case of puts. The market value of a put or call will usually reflect, among other factors, the market price of the underlying security. When a Fund writes a call option, an amount equal to the premium received by the Fund is included in the Fund's financial statements as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. The current market value of a traded option is the last sale price or, in the absence of a sale, the last offering price. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase or sales transaction, the Fund realizes a gain or loss without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. When an option is exercised, the Fund realizes a gain or loss from the sale of the underlying security, and the proceeds of the sale are increased by the premium originally received, or reduced by the price paid for the option. FAIR VALUATION For the Pooled Separate Accounts, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under the direction of our investment officers in accordance with accepted accounting practices and applicable laws and regulations. Market quotations may not be readily available or reliable if, for example, trading has been halted in the particular security; the security does not trade for an extended period of time; or a trading limit has been imposed. For the Funds offered under Separate Account No. 66, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under policies and procedures established by the Trusts. For more information, please see the prospectus for the applicable Trust. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method deemed to reflect fair value. Such a policy is intended to assure that the net asset value of a separate account or fund fairly reflects security values as of the time of pricing. OTHER FUNDS. For those Funds that invest in corresponding Portfolios of AXA Premier VIP Trust and EQ Advisors Trust (the "Investment Trusts"), the asset value of each Portfolio is computed on a daily basis. See the prospectus for the Investment Trust for information on valuation methodology used by the corresponding portfolios. 27 HOW WE VALUE YOUR ACCOUNT BALANCE IN THE FUNDS 3. Transfers and access to your account -------------------------------------------------------------------------------- TRANSFERS AMONG INVESTMENT OPTIONS You may transfer some or all of your amounts among the investment options if you participate in the IRS Pre-Approved Plan. Participants in other plans may make transfers as allowed by the plan. No transfers from the GRAs to other investment options are permitted prior to maturity. Transfers to the GRAs are no longer permitted as of July 10, 2015. Transfers to or from the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds, are permitted at any time. Transfers from remaining Funds are permitted at any time except if there is any delay in redemptions from the corresponding portfolio of the Trusts. No transfers to the Money Market Guarantee Account are permitted. See "Money Market Guarantee Account is closed to new money" under "Investment options" earlier in this prospectus for more information. Please see "Allocating Program contributions" in "The Program" for more information about your role in managing your allocations. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing"organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the Fund or the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the Funds or the underlying portfolios in which the Funds invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a Fund or 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 Fund or 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 investment 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 Fund or 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 Fund or 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. Funds or 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 Funds or 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 variable investment options 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 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 contract owners/participants. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The 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 trust obtains from us owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same Fund within a five business day period as potentially disruptive transfer 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. When a contract owner/participant is identified as having engaged in a potentially disruptive transfer activity for the first time, a letter is sent to the contract owner/participant explaining that there is a policy against disruptive transfer activity and that if such activity continues certain transfer privileges may be eliminated. If and when the contract owner/participant is identified a second time as engaged in potentially disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. 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 contract owners/participants uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. 28 TRANSFERS AND ACCESS TO YOUR ACCOUNT For the Pooled Separate Accounts, the portfolio managers review aggregate cash flows on a daily basis. If the portfolio managers consider transfer activity with respect to an account to be disruptive, AXA Equitable reviews contract owner/participant trading activity to identify any potentially disruptive transfer activity. AXA Equitable follows the same policies and procedures identified in the previous paragraph. We may change those policies and procedures, and any new or revised policies or procedures will apply to all contract owners/participants uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that the trusts may impose a redemption fee designed to discourage frequent or disruptive trading by contract owners/participants. As of the date of this prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by the trusts, that fee, like any other trust fee, will be borne by the contract owner/participant. Contract owners/participants should note that it is not always possible for us and the trusts to identify and prevent disruptive transfer activity. Our ability to monitor potentially disruptive transfer activity is limited in particular with respect to certain group contracts. Group annuity contracts may be owned by retirement plans that provide transfer instructions on an omnibus (aggregate) basis, which may mask the disruptive transfer activity of individual plan participants, and/or interfere with our ability to restrict communication services. In addition, because we do not monitor for all frequent trading in the trust portfolios at the separate account level, contract owners/participants 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 affiliated trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some contract owners/participants may be treated differently than others, resulting in the risk that some contract owners/participants 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. OUR AUTOMATED VOICE RESPONSE SYSTEM AND OUR INTERNET WEBSITE Participants may use our Automated Voice Response System or our internet website to transfer between investment options, obtain account information, change the allocation of future contributions and hear investment performance information. To use our Automated Voice Response System, you must have a touch-tone telephone. We assign a personal security code ("PSC") number or password in the case of employers accessing the Plan Services website, to you after we receive your completed enrollment form. Our Internet website can be accessed at www.axa.com/mrp. Employers may also access our Plan Services website to have plan level access to transaction activity, reports, census features, make online contributions and prepare and file annual 5500 reports. The Plan Services website can be accessed at www.axa.com/mrp. We have established procedures to reasonably confirm the genuineness of instructions communicated to us by telephone when using the Automated Voice Response System and by the Program website. The procedures require personal identification information, including entering credentials, prior to acting on telephone instructions or accessing information on the internet website, and providing written confirmation of the transfers. We assign credentials to you after we receive your completed enrollment form. Thus, we will not be liable for following telephone instructions, or internet instructions, we reasonably believe to be genuine. We reserve the right to limit access to this service if we determine that you are engaged in a market timing strategy (see "Disruptive transfer activity" above). A transfer request will be effective on the business day we receive the request. We will confirm all transfers in writing. PARTICIPANT LOANS Participant loans are available if the employer plan permits them. Participants must apply for a plan loan through the employer. The number of plan loans outstanding are subject to the terms of the employer's plan. Loans are subject to restrictions under federal tax laws and ERISA, and are also subject to the limits of the plan. Loan packages containing all necessary forms, along with an explanation of how interest rates are set, are available from our Account Executives. A loan may not be taken from the Guaranteed Rate Accounts. If a participant is married, written spousal consent may be required for a loan. Generally, the loan amount will be transferred from the investment options into a loan account. The participant must repay the amount borrowed with interest as required by federal income tax rules. If you fail to repay the loan when due, the amount of the unpaid balance may be taxable and subject to additional penalty taxes. No participant who has defaulted on a loan under the employer plan shall be granted any additional loans under this plan. Interest paid on a retirement plan loan is not deductible. CHOOSING BENEFIT PAYMENT OPTIONS Benefit payments are subject to plan provisions. The Program offers a variety of benefit payment options. If you are a participant in an individually-designed plan, ask your employer for details. Once you are eligible, your plan may allow you a choice of one or more of the following forms of distribution: . Periodic installments . Qualified Joint and Survivor Annuity . Joint and Survivor Annuity Options, some with optional Period Certain . Life Annuity . Life Annuity -- Period Certain . Cash Refund Annuity . Lump Sum Payment TYPES OF BENEFITS Under the IRS Pre-Approved Plan, you may select one or more of the following forms of distribution once you are eligible to receive benefits. If your employer has adopted an individually designed plan that does not offer annuity benefits, not all of these distribution forms may be available to you. We suggest you ask your employer what types of benefits are available under your plan. The distribution will be in the 29 TRANSFERS AND ACCESS TO YOUR ACCOUNT form of a life annuity or another form that you choose and is offered by us at the time. We reserve the right to remove or change these annuity payout options, other than the life annuity, or to add another payout option at any time. QUALIFIED JOINT AND SURVIVOR ANNUITY. An annuity providing equal monthly payments for your life and, after your death, for your surviving spouse's life. No payments will be made after you and your spouse die, even if you have received only one payment prior to the last death. IN SOME PLANS, THE LAW REQUIRES THAT IF THE VALUE OF YOUR VESTED BENEFITS EXCEEDS $5,000, YOU MUST RECEIVE A QUALIFIED JOINT AND SURVIVOR ANNUITY UNLESS YOUR SPOUSE CONSENTS IN WRITING TO A CONTRARY ELECTION. Please see "Spousal consent requirements" below. LUMP SUM PAYMENT. A single payment of all or part of your vested benefits. If you take a partial payment of your balance, it must be at least $1,000. If you have more than one GRA, amounts held in your most recent GRA will first be used to make payment. If you terminated employment and your vested account balance is less than $1,000, you will receive a lump sum payment of the entire vested amount unless alternate instructions are provided in a reasonable period after receiving your Election of Benefits Package. PERIODIC INSTALLMENTS. Monthly, quarterly, semi-annual or annual payments over a period of at least three years, where the initial payment on a monthly basis is at least $300. You can choose either a time-certain payout, which provides variable payments over a specified period of time, or a dollar-certain payout, which provides level payments over a variable period of time. During the installment period, your remaining account balance will be invested in whatever investment options you designate; each payment will be drawn pro-rata from all the investment options you have selected. If you have more than one GRA, amounts held in your most recently purchased three-year or five-year GRA will first be used to make installment payments. If you die before receiving all the installments, we will make the remaining payments to your beneficiary, subject to IRS minimum distribution rules and beneficiary election. We do not offer installments for benefits under individually designed plans. LIFE ANNUITY. An annuity providing monthly payments for your life. No payments will be made after your death, even if you have received only one payment prior to your death. LIFE ANNUITY -- PERIOD CERTAIN. An annuity providing monthly payments for your life or, if longer, a specified period of time. If you die before the end of that specified period, payments will continue to your beneficiary until the end of the period. Subject to legal limitations, you may specify a minimum payment period of 5, 10, 15 or 20 years. The longer the specified period, the smaller the monthly payments will be. JOINT AND SURVIVOR ANNUITY. An annuity providing monthly payments for your life and that of your beneficiary. You may specify the percentage of the original annuity payment to be made to your beneficiary. Subject to legal limitations, that percentage may be 100%, 75%, 50%, or any other percentage you specify. JOINT AND SURVIVOR ANNUITY -- PERIOD CERTAIN. An annuity providing monthly payments for your life and that of your beneficiary or, if longer, a specified period of time. If you and your beneficiary both die before the end of the specified period, payments will continue to your contingent beneficiary until the end of the period. Subject to legal limitations, you may specify a minimum payment period of 5, 10, 15 or 20 years and the percentage of the annuity payment to be made to your beneficiary (as noted above under Joint and Survivor Annuity). The longer the specified period, the smaller your monthly payments will be. CASH REFUND ANNUITY. An annuity providing equal monthly payments for your life with a guarantee that the sum of those payments will be at least equal to the portion of your vested benefits used to purchase the annuity. If upon your death the sum of the monthly payments to you is less than that amount, your beneficiary will receive a lump sum payment of the remaining guaranteed amount. FIXED AND VARIABLE ANNUITY CHOICES The cost of the fixed annuity is determined from tables in the group annuity contract which show the amounts necessary to purchase each $1 of monthly payment (after deduction of any applicable taxes and the annuity administrative charge described below). Payments depend on the annuity selected, your age, and the age of your beneficiary if you select a joint and survivor annuity. We may change the tables in the contract no more than once every five years. The minimum amount that can be used to purchase any type of annuity is $5,000. If we give any group pension client with a qualified profit sharing plan a better annuity purchase rate than those currently available for the Program, we will also make those rates available to Program participants. Under a Qualified Joint and Survivor Annuity or a Cash Refund Annuity, the amount of the monthly payments is fixed at retirement and remains level throughout the distribution period. Under the Life Annuity, Life Annuity -- Period Certain, Joint and Survivor Annuity and Joint and Survivor Annuity -- Period Certain, you may select either fixed or variable payments. The variable payments reflect the investment performance of the Growth Equity Fund. If you are interested in a variable annuity, when you are ready to select your benefit please ask our Account Executives for our variable annuity prospectus supplement. SPOUSAL CONSENT REQUIREMENTS Under the IRS Pre-Approved Plan, you may designate a non-spouse beneficiary any time after the earlier of: (1) the first day of the plan year in which you attain age 35, or (2) the date on which you separate from service with your employer. If you designate a beneficiary other than your spouse prior to you reaching age 35, your spouse must consent to the designation and, upon you reaching age 35, must again give his or her consent or the designation will lapse. In order for you to make a withdrawal, elect a form of benefit other than a Qualified Joint and Survivor Annuity or designate a non-spouse beneficiary, your spouse must consent to your election in writing within the 90 day period before your annuity starting date. To consent, your spouse must sign on the appropriate line on your election of benefits or beneficiary designation form. Your spouse's signature must be witnessed by a notary public or plan representative. If you change your mind, you may revoke your election and elect a Qualified Joint and Survivor Annuity or designate your spouse as beneficiary, simply by filing the appropriate form. Your spouse's consent is not required for this revocation. 30 TRANSFERS AND ACCESS TO YOUR ACCOUNT It is also possible for your spouse to sign a blanket consent form. By signing this form, your spouse consents not just to a specific beneficiary or, with respect to the waiver of the Qualified Joint and Survivor Annuity, the form of distribution, but gives you the right to name any beneficiary, or if applicable, form of distribution you want. Once you file such a form, you may change your election whenever you want, even without spousal consent. All of these annuity options can be either fixed or variable except for the Cash Refund Annuity and the Qualified Joint and Survivor Annuity which are fixed options only. -------------------------------------------------------------------------------- THE AMOUNT OF EACH PAYMENT IN A FIXED OPTION REMAINS THE SAME. VARIABLE OPTION PAYMENTS CHANGE TO REFLECT THE INVESTMENT PERFORMANCE OF THE ALLIANCEBERNSTEIN GROWTH EQUITY FUND. -------------------------------------------------------------------------------- See "Procedures for withdrawals, distributions and transfers" in the SAI. We provide the fixed and variable annuity options. Payments under variable annuity options reflect investment performance of the AllianceBernstein Growth Equity Fund. The minimum amount that can be used to purchase any type of annuity is $5,000. If we give any group pension client with a qualified plan a better annuity purchase rate than those currently guaranteed under the Program, we will also make those rates available to Program participants. SPOUSAL CONSENT If a participant is married and has an account balance greater than $5,000, (except for amounts contributed to the Rollover Account) federal law generally requires payment (subject to plan rules) of a Qualified Joint and Survivor Annuity payable to the participant for life and then to the surviving spouse for life, unless you and your spouse have properly waived that form of payment in advance. Please see "Spousal consent requirements" above. Certain individually designed Plans are not subject to these requirements. PROOF OF CORRECT INFORMATION If any information on which an annuity benefit payable under the contract was based has been misstated, the benefit will not be invalidated, but based on the correct information. AXA Equitable will adjust the amount of the annuity payments with respect to a fixed annuity benefit, the number of variable annuity units with respect to a variable annuity benefit and the amount used to provide the annuity benefit. Overpayments will be charged against any annuity payments and underpayments will be added to any annuity payments made under the annuity benefit after this adjustment. AXA Equitable will provide you with a written explanation, based solely on the information in its possession, of the reason for the adjustment. AXA Equitable's liability to you is limited to the amount of annuity benefit that can be provided on the basis of correct information with the actual amount available under the contract. BENEFITS PAYABLE AFTER THE DEATH OF A PARTICIPANT Regardless of whether a participant's death occurs before or after your Required Beginning Date, an individual death beneficiary calculates annual post-death required minimum distribution payments based on the beneficiary's life expectancy using the "term certain method." That is, he or she determines his or her life expectancy using the IRS-provided life expectancy tables as of the calendar year after the participant's death and reduces that number by one each subsequent year. If a participant dies before the entire benefit has been paid, the remaining benefits will be paid to the participant's beneficiary. If a participant dies before he or she is required to begin receiving benefits, the law generally requires the entire benefit to be distributed no more than five years after death. There are exceptions: (1) a beneficiary who is not the participant's spouse may elect payments over his or her life or a fixed period which does not exceed the beneficiary's life expectancy, provided payments begin by December 31 of the year following the year of death, (2) if the benefit is payable to the spouse, the spouse may elect to receive benefits over his or her life or a fixed period which does not exceed his/her life expectancy beginning any time up to December 31 of the year the participant would have attained age 70 1/2 or, if later, December 31 of the year after the participant's death, or (3) the spouse or the beneficiary who is not the participant's spouse may be able to roll over all or part of the death benefit to an individual retirement arrangement, or, for a spouse only, an annuity under Section 403(b) of the Code or a governmental employer plan under Section 457 of the Code. If, at death, a participant was already receiving benefits, the beneficiary must continue to receive benefits, subject to the federal income tax minimum distribution rules. To designate a beneficiary or to change an earlier designation, a participant must have the employer send us a beneficiary designation form. In some cases, the spouse must consent in writing to a designation of any non-spouse beneficiary, as explained in "Spousal consent requirements" above. Under the IRS Pre-Approved Plan, on the day we receive proof of death, we automatically transfer the participant's account balance in the Equity Funds to the investment option designated in the contract unless the beneficiary gives us other written instructions. The balance in the Guaranteed Rate Accounts will remain in the Guaranteed Rate Accounts and the balance in the Guaranteed Interest Option, will remain in the Guaranteed Interest Option. A non-spousal beneficiary may be able to directly roll over a death benefit into a new individual retirement arrangement dedicated to making post-death payments. 31 TRANSFERS AND ACCESS TO YOUR ACCOUNT 4. The Program -------------------------------------------------------------------------------- This section explains the Program in further detail. It is intended for employers who wish to enroll in the Program, but contains information of interest to participants as well. You should, of course, understand the provisions of your plan and the Adoption Agreement that define the scope of the Program in more specific terms. References to "you" and "your" in this section are to you in your capacity as an employer. The Program is described in the prospectus solely to provide a more complete understanding of how the Funds and GRAs operate within the Program. The Program itself is not registered under the Securities Act of 1933. The Members Retirement Program consists of either a defined contribution IRS Pre-Approved Plan and Separate Trust ("IRS Pre-Approved Plan and Trust") that is sponsored by AXA Equitable or, for Employers who prefer to use their own individually-designed or an IRS Pre-Approved defined contribution Plan document, in conjunction with the Plan's Trust, or the Pooled Trust. The Program offers, according to the terms of either the IRS Pre-Approved Plan and Trust or Pooled Trust, a group variable annuity Contract as a funding vehicle for employers who sponsor qualified retirement Plans. The Program is sponsored by AXA-Equitable, and the Trustee under the Separate Trust is Reliance Trust Company. The Program had 4,002 participants and approximately $245 million in assets at December 31, 2015. Our Retirement Program Specialists are available to answer your questions about joining the Program. Please contact us by using the telephone number or addresses listed under "How to reach us -- INFORMATION ON JOINING THE PROGRAM" earlier in the prospectus. SUMMARY OF PLAN CHOICES You have a choice of two retirement plan arrangements under the Program. You can: . Choose the IRS PRE-APPROVED PLAN -- which automatically gives you a full range of services from AXA Equitable. These include your choice of the Program investment options, plan-level and participant-level recordkeeping, benefit payments and tax withholding and reporting. Under the IRS Pre-Approved Plan, employers adopt our Master Trust and your only investment choices are from the Investment Options. ----------------------------------------------------------------------------- THE MEMBERS RETIREMENT PLAN IS A DEFINED CONTRIBUTION MASTER PLAN THAT CAN BE ADOPTED AS A PROFIT SHARING PLAN (INCLUDING OPTIONAL 401(K), SIMPLE 401(K) AND SAFE HARBOR 401(K) FEATURES), A DEFINED CONTRIBUTION PENSION PLAN, OR BOTH. A ROTH 401(K) OPTION IS AVAILABLE FOR ALL 401(K) PLAN TYPES. ----------------------------------------------------------------------------- . Maintain our POOLED TRUST FOR INDIVIDUALLY DESIGNED PLANS -- and use our Pooled Trust for investment options in the Program in addition to your own individual investments. The Pooled Trust is for investment only and can be used for both defined benefit and defined contribution plans. We provide participant-level or plan-level recordkeeping services for plan assets in the Pooled Trust. ----------------------------------------------------------------------------- THE POOLED TRUST IS AN INVESTMENT VEHICLE USED WITH INDIVIDUALLY DESIGNED QUALIFIED RETIREMENT PLANS. IT CAN BE USED FOR BOTH DEFINED CONTRIBUTION AND DEFINED BENEFIT PLANS. WE PROVIDE RECORDKEEPING SERVICES FOR PLAN ASSETS HELD IN THE POOLED TRUST. ----------------------------------------------------------------------------- Choosing the right plan depends on your own set of circumstances. We recommend that you review all plan, trust, participation and related agreements with your legal and tax counsel. GETTING STARTED If you choose the IRS Pre-Approved Plan, you as the employer or trustee must complete an Adoption Agreement. As an employer, you are responsible for the administration of the plan you choose. Please see "Your responsibilities as employer" in the SAI. HOW TO MAKE PROGRAM CONTRIBUTIONS Contributions can be made using the online contribution feature at www.axa.com/mrp by clicking Employer Log-In or by mail to the Association Members Retirement Program, PO Box 13678, Newark, NJ 07188-3678. If using the online contribution feature employers will need their User ID and Password. If the contribution is remitted by mail it must be in the form of a check drawn on a bank in the U.S., clearing through the Federal Reserve System, in U.S. dollars, and made payable to AXA Equitable. Third party checks are not acceptable, except for rollover contributions, tax-free exchanges or trustee checks that involve no refund. All checks are subject to collection. We reserve the right to reject a contribution if it is received in an unacceptable form. All contributions sent in by mail must be accompanied by a form acceptable to AXA which designates the amount to be allocated to each participant by contribution type. The Statement of Additional Information provides additional details on how to make contributions to the Program. Contributions are normally credited on the business day that we receive them, provided the Contribution Remittance form is properly completed and matches the check/contribution amount. Contributions are only accepted from the employer for properly enrolled participants. Employees may not send contributions directly to the Program. There is no minimum amount which must be contributed for investment if you adopt either Plan or if you have your own individually designed plan that uses the Pooled Trust. ALLOCATING PROGRAM CONTRIBUTIONS The group annuity contract that covers the qualified plan in which you participate is not an investment advisory account, and AXA Equitable is not providing any investment advice or managing the allocations under this contract. In the absence of a specific written arrangement to the contrary, you, as the participant under this contract, have the sole authority to make investment allocations and other decisions under the contract. Your Account Executive is acting as a broker-dealer registered representative, and may not be authorized to act as an investment advisor or to manage the allocations under your contract. 32 THE PROGRAM Investment decisions for individually designed plans are made either by the participant or by the plan trustees depending on the terms of the plan. Participants may allocate contributions among any number of Program investment options. Allocation instructions can be changed at any time. You may allocate employer contributions in different percentages than your employee contributions. The allocation percentages you elect for employer contributions will automatically apply to 401(k) qualified non-elective contributions, qualified matching contributions and matching contributions. The allocation percentages you elect for employee contributions will automatically apply to both your post-tax employee contributions and your 401(k) salary deferral contributions. THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 PROVIDES RELIEF TO A PLAN FIDUCIARY OF A QUALIFIED PLAN WITH PARTICIPANT DIRECTED ACCOUNTS, IF THE FIDUCIARY ALLOCATES TO A QUALIFIED DEFAULT INVESTMENT ALTERNATIVE (QDIA) CONTRIBUTIONS WHICH THE PARTICIPANT HAS FAILED TO DIRECT TO AN INVESTMENT OPTION UNDER THE PLAN AFTER NOTICE BY THE PLAN. THE QDIA UNDER THE MRP IS THE AXA MODERATE ALLOCATION PORTFOLIO UNLESS THE PLAN'S FIDUCIARY HAS CHOSEN AN ALTERNATE QDIA. IF YOU HAVE NOT SELECTED AN INVESTMENT OPTION(S) UNDER THE MRP TO ALLOCATE YOUR CONTRIBUTIONS, THE PLAN FIDUCIARY WILL ALLOCATE YOUR CONTRIBUTIONS TO THE PLAN'S QDIA, AFTER THE FIDUCIARY HAS GIVEN YOU NOTICE IN ACCORDANCE WITH THE REGULATIONS. AFTER FUNDS HAVE BEEN ALLOCATED TO THE PLAN'S QDIA, YOU MAY REALLOCATE THOSE FUNDS TO ANY OTHER INVESTMENT OPTION UNDER THE MRP. WHEN TRANSACTION REQUESTS ARE EFFECTIVE Contributions, as well as transfer requests and allocation changes (not including GRA maturity allocation changes discussed in the SAI), are effective on the business day they are received. Distribution requests are also effective on the business day they are received unless, as in the Plans, there are plan provisions to the contrary. Transaction requests received after the end of a business day will be credited the next business day. Processing of any transaction may be delayed if a properly completed form is not received. Trustee-to-trustee transfers of plan assets are effective the business day after we receive all items we require, including check and mailing instructions, and a plan opinion/IRS determination letter from the new or amended plan, or adequate proof of qualified plan status. DISTRIBUTIONS FROM THE INVESTMENT OPTIONS Keep in mind two sets of rules when considering distributions or withdrawals from the Program. The first are rules and procedures that apply to the investment options, exclusive of the provisions of your plan. We discuss those in this section. The second are rules specific to your plan. We discuss those "Rules applicable to participant distributions" below. Certain plan distributions may be subject to federal income tax, and penalty taxes. See "Tax information" later in this prospectus. AMOUNTS IN THE FUNDS AND MONEY MARKET GUARANTEE ACCOUNT These are generally available for distribution at any time, subject to the provisions of your plan. Distributions from the Money Market Guarantee Account and the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are permitted at any time. Distributions from remaining Funds are permitted at any time except if there is any delay in redemptions from the corresponding portfolio of the Trusts, as applicable. AMOUNTS IN THE GUARANTEED RATE ACCOUNTS AND GUARANTEED INTEREST OPTION Withdrawals generally may not be taken from GRAs. See "Guaranteed Rate Accounts" earlier in this prospectus. Withdrawals and transfers from the GIO, to other investment options are permitted, subject to certain conditions. See "Guaranteed Interest Option" earlier in this Prospectus. Payments or withdrawals and application of proceeds to an annuity ordinarily will be made promptly upon request in accordance with plan provisions. However, we can defer payments, applications and withdrawals for any period during which the New York Stock Exchange is closed for trading, sales of securities are restricted or determination of the fair market value of assets is not reasonably practicable because of an emergency. IF YOUR PLAN IS AN EMPLOYER OR TRUSTEE-DIRECTED PLAN, YOU AS THE EMPLOYER ARE RESPONSIBLE FOR ENSURING THAT THERE IS SUFFICIENT CASH AVAILABLE TO PAY BENEFITS. RULES APPLICABLE TO PARTICIPANT DISTRIBUTIONS In addition to our own procedures, distribution and benefit payment options under a tax qualified retirement plan are subject to complicated legal requirements. A general explanation of the federal income tax treatment of distributions and benefit payment options is provided in "Tax information" later in this prospectus and in the SAI. You should discuss your options with a qualified financial advisor. Our Account Executives also can be of assistance. In general, under the Plans, participants are eligible for benefits upon retirement, death or disability, or upon termination of employment with a vested benefit. Participants in an individually designed plan are eligible for retirement benefits depending on the terms of their plan. See "Benefit payment options" under "Transfers and access to your money" earlier in this prospectus and "Tax information" later in this prospectus for more details. For participants who own more than 5% of the business, benefits must begin no later than April 1 of the year after the participant reaches age 70 1/2. For all other participants, distribution must begin by April 1 of the later of the year after attaining age 70 1/2 or retirement from the employer sponsoring the plan. Distributions must be made according to the terms of the plan and rules in the Code and Treasury Regulations. Certain provisions of the Treasury Regulations on required minimum distributions concerning the actuarial present value of additional contract benefits could increase the amount required to be distributed from annuity contracts funding qualified plans and other tax qualified retirement arrangements such as IRAs. These provisions could apply to participants who satisfy required minimum distributions through annual withdrawals instead of receiving annuity payments. For this purpose additional annuity contract benefits may include enhanced death benefits and guaranteed minimum income benefits. Currently we believe that these provisions would not apply to Members Retirement Program contracts because of the type of benefits provided under the contract. However, you should consider the potential implication of these Regulations before you purchase or contribute to this annuity contract. . A participant may withdraw all or part of his/her account balance under either Plan attributable to post-tax employee 33 THE PROGRAM contributions at any time, provided that he/she withdraw at least $300 at a time (or, if less, his/her entire post-tax account balance). . If a participant is married, his/her spouse must generally consent in writing before he/she can make any type of withdrawal except to purchase a Qualified Joint and Survivor Annuity. Self-employed persons may generally not receive a distribution prior to age 59 1/2. . Employees may generally not receive a distribution prior to severance from employment. . Hardship withdrawals before age 59 1/2 may be permitted under 401(k) and certain other profit sharing plans. Under an individually designed plan, the availability of pre-retirement withdrawals depends on the terms of the plan. We suggest that participants ask their employer what types of withdrawals are available under their plan. See "Procedures for withdrawals, distributions and transfers" in the SAI for a more detailed discussion of these general rules. Generally participants may not make withdrawals from the Guaranteed Rate Accounts prior to maturity. See "The Guaranteed Rate Accounts" earlier in this prospectus. 34 THE PROGRAM 5. Charges and expenses -------------------------------------------------------------------------------- You will incur two general types of charges under the Program: (1)Charges imposed on amounts invested in the Plan Trust -- these apply to all amounts invested in the Plan Trust (including installment payout option payments), and do not vary by plan. These are, in general, reflected as reductions in the unit values of the Funds or as reductions from the rates credited to the guaranteed options. (2)Plan and transaction charges -- these vary by plan or are charged for specific transactions, and are typically stated in a dollar amount. Unless otherwise noted, these are deducted in fixed dollar amounts by reducing the number of units in the appropriate Funds and the dollars in the Guaranteed Options. We deduct amounts for the 3-year or 5-year GRA from your most recent GRA. We make no deduction from your contributions or withdrawals for sales expenses. PROGRAM EXPENSE CHARGE (BASED ON AMOUNTS INVESTED IN THE PROGRAM) We assess the Program expense charge on the last day of each month or upon the withdrawal of all assets under your plan. The maximum Program expense charge was 1.00% per year, assessed as a monthly charge. Effective May 2, 2016, the maximum Program expense charge will be lowered to 0.85% per year. The Program expense charge you actually pay may be lower, as illustrated by the chart below. The purpose of this charge is to cover the expenses that we incur in connection with the Program.
------------------------------------------------------------------------------- AVERAGE ACCOUNT VALUE ------------------------------------------------ $75,000 OR LESS MORE THAN $75,000 ------------------------------------------------------------------------------- TOTAL PLAN ASSETS SCHEDULE A SCHEDULE B ------------------------------------------------------------------------------- First $250,000 0.85% 0.85% Next $250,000 0.65% 0.55% Over $500,000 0.50% 0.40% -------------------------------------------------------------------------------
We determine the Program expense charge for your plan on the last day of each month, based on two factors: (1) the Average account value of the accounts in your plan, and (2) the value of the Total plan assets invested in the Members Retirement Program by your plan, on that date. We assess the Program expense charge on all assets in your plan. All participants in a plan pay the Program expense charge at the same percentage rate, regardless of individual account value. Each participant in a plan has an account value, which is the total value of that participant's investment in the Members Retirement Program. The Average account value in a plan is the average of the account values of all of the participants in the plan, who have an account value greater than zero. If the Average account value under the Plan is $75,000 or less, then the Program expense charge will be determined using Schedule A on the chart above. If the Average account value under the Plan is more than $75,000, then the Program expense charge will be determined using Schedule B on the chart above. Total plan assets are all of the assets invested in the Members Retirement Program under a plan. The first $250,000 in assets under the plan was subject to a Program expense charge of 1.00% per year. Effective May 2, 2016, the maximum Program expense charge will be lowered to 0.85% per year. If the Total plan assets exceed $250,000, any amounts greater than that will be subject to a lower charge. The next $250,000 (up to Total plan assets of $500,000) will be subject to a Program expense charge of either 0.65% or 0.55%, under Schedule A or Schedule B, respectively. Any assets in the plan in excess of $500,000 will be subject to a Program expense charge of either 0.50% or 0.40%, under Schedule A or Schedule B, respectively. The sum of the amounts calculated under this formula equals the total Program expense charge for the plan. The percentage of Total plan assets that this sum represents is the annual Program expense charge that each participant in the plan pays on his or her account value. We will deduct the Program expense charge from your account value, except for amounts held in the 3-year and 5-year Guaranteed Rate Accounts, on a pro-rata basis, as of the last business day of each month. Such amount will be deducted from the participant's account balances in accordance with the ordering rule established by AXA Equitable from time to time and communicated in writing to the Employer. The amounts we deduct from the Guaranteed Interest Option and Money Market Guarantee Account will never cause the rates we pay on those accounts to fall below 1%. We apply the Program expense charge toward the cost of maintenance of the investment options, the promotion of the Program, investment funds, Guaranteed Rate Accounts, the Guaranteed Interest Option, when available, and Money Market Guarantee Account, administrative costs, such as enrollment and answering participant inquiries, and overhead expenses such as salaries, rent, postage, telephone, travel, legal, actuarial and accounting costs, office equipment and stationery. During 2015, we received $1,971,861 compensation under the Program expense charge. MEMBERS RETIREMENT PLAN AND INVESTMENT ONLY FEES (PLAN AND TRANSACTION EXPENSES) RECORD MAINTENANCE AND REPORT FEE. At the end of each calendar quarter, we deduct a record maintenance and report fee of $3.75 from your account balance. We reserve the right to charge varying fees based on the requested special mailings, reports and services given to your retirement plan. ENROLLMENT FEE. We charge an employer a non-refundable enrollment fee of $25 for each participant enrolled under its plan. If we do not maintain individual participant records under an individually-designed plan, we instead charge the employer $25 for each plan or trust. If the employer fails to pay these charges, we may deduct the amount from subsequent contributions or from participants' account balances. 35 CHARGES AND EXPENSES ANNUAL PORTFOLIO OPERATING EXPENSES (DEDUCTED BY THE TRUSTS) All Funds other than the AllianceBernstein Growth Equity Fund, the AllianceBernstein Mid Cap Growth Fund and the AllianceBernstein Balanced Fund are indirectly subject to investment management fees, 12b-1 (if applicable) fees and other expenses charged against assets of the corresponding Portfolios of the Investment Trusts. These expenses are described in the Trusts' prospectuses. INVESTMENT MANAGEMENT AND ACCOUNTING FEES (BASED ON AMOUNTS INVESTED IN THE PROGRAM) The computation of unit values for the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds reflects fees charged for investment management and accounting. The investment management and accounting fee covers AllianceBernstein's investment management and our financial accounting services provided to these Funds, as well as portion of our related administrative costs. The portion of the fee attributable to investment management services is retained by AllianceBernstein. We receive fees for financial accounting and administrative services we provide for these Funds. The fees shown in the Fee Table are estimated based on the experience of the Funds during the fiscal year ended December 31, 2015. The fees may be higher or lower based on the experience of the Funds during the fiscal year ended December 31, 2016. DIRECT OPERATING AND OTHER EXPENSES (BASED ON AMOUNTS INVESTED IN THE PROGRAM) In addition to the charges and fees mentioned above, the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and other costs related to the operation of the Funds. The fees shown in the Fee Table are estimated based on the experience of the Funds during the fiscal year ended December 31, 2015. The fees may be higher or lower based on the experience of the Funds during the fiscal year ended December 31, 2016. OTHER EXPENSES (BASED ON AMOUNTS INVESTED IN THE PROGRAM) We may impose certain additional costs and expenses on the Funds. These may include the cost of printing of SEC filings, prospectuses and reports, proxy mailings, other mailing costs, as well as legal and audit expenses. CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Currently, we deduct the charge from the amount applied to provide an annuity pay-out option. The current tax charge that might be imposed on us varies by state and ranges from 0% to 1%. We reserve the right to deduct any applicable charges such as premium taxes from each contribution or from distributions or upon termination of your contract. If we have deducted any applicable tax charges from contributions, we will not deduct a charge for the same taxes later. If, however, an additional tax is later imposed on us when you make a partial or full withdrawal, or your contract is terminated, or you begin receiving annuity payments, we reserve the right to deduct a charge at that time. FEES PAID TO ASSOCIATIONS We may pay associations a fee for services provided in connection with the Program being made available to their memberships. The fee may be based on the number of employers whom we solicit, the number who participate in the Program, and/or the value of Program assets. We make these payments without any additional deduction or charge under the Program. GENERAL INFORMATION ON FEES AND CHARGES We will give you written notice of any change in the fees and charges. We may also establish a separate fee schedule for requested non-routine administrative services. During 2015 we received total fees and charges under the Program of $2,182,106. 36 CHARGES AND EXPENSES 6. Tax information -------------------------------------------------------------------------------- In this section, we briefly outline current federal income tax rules relating to the adoption of the Program, contributions to the Program and distributions to participants under qualified retirement plans. Certain other information about qualified retirement plans appears here and in the SAI. Federal income tax rules include the United States laws in the Internal Revenue Code, and Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect annuity contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of an annuity contract. We cannot predict, what, if any, legislation will actually be proposed or enacted that may affect annuity contracts. We cannot provide detailed information on all tax aspects of the Program, plans and contracts. Moreover, the tax aspects that apply to a particular person's situation may vary depending on the facts applicable to that person. We do not discuss state income and other state taxes, federal income tax and withholding rules for non-U.S. taxpayers, or federal gift and estate taxes. Rights or values under plans or contracts, or payments under plans or contracts, for example, amounts due to beneficiaries, may be subject to federal or state gift, estate, or inheritance taxes. You should not rely only on this document, but should consult your tax advisor before your purchase. FOREIGN ACCOUNT TAX COMPLIANCE ACT ("FATCA") Even though this section in the Prospectus discusses consequences to United States individuals you should be aware that the Foreign Account Tax Compliance Act ("FATCA") which applies to certain U.S.-source payments may require AXA Equitable and its affiliates to obtain specified documentation of an entity's status before payment is made in order to avoid punitive 30% FATCA withholding. The FATCA rules are initially directed at foreign entities, and may presume that various U.S. entities are "foreign" unless the U.S. entity has documented its U.S. status by providing Form W-9. Also, in future years FATCA and related rules may require us to document the status of certain contractholders, as well as report contract values and other information for such contractholders. For this reason AXA Equitable and its 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. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Annuity contracts can be purchased in connection with employer plans qualified under Code Section 401. You should be aware that the funding vehicle for a qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, you should consider the annuity's features and benefits, such as the contract's selection of investment funds, availability of guaranteed options, and choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you elect. INCOME TAXATION OF DISTRIBUTIONS TO QUALIFIED PLAN PARTICIPANTS In this section, the word "you" refers to the plan participant. Amounts distributed to a participant from a qualified plan are generally subject to federal income tax as ordinary income when benefits are distributed to you or your beneficiary. Generally, only your post-tax contributions, if any, are not taxed when distributed. If an employer's 401(k) plan permits, an employee may designate some or all of elective deferral contributions as "designated Roth contributions," which are made on a post-tax basis to the 401(k) arrangement. Designated Roth contributions must be separately accounted for. If certain timing and distribution event requirements are satisfied, distributions from a designated Roth contribution account under a 401(k) plan will be tax-free. If both aging and event tests are not met, earnings attributable to a designated Roth account may be includible in income. Distributions from designated Roth contribution accounts may be rolled over to other designated Roth contribution accounts under an eligible retirement plan (401(k) plan, 403(b) plan or governmental employer Section 457 plan) or to Roth IRAs. ELIGIBLE ROLLOVER DISTRIBUTIONS. Many types of distributions from qualified plans are "eligible rollover distributions" that can be rolled over to another "eligible retirement plan" which will accept the rollover. Eligible retirement plans include qualified plans, individual retirement arrangements ("IRAs"), Section 403(b) plans, and governmental employer Section 457(b) plans. Eligible rollover distributions may also be rolled over to another eligible retirement plan within 60 days of the receipt of the distribution, but the distribution will be subject to mandatory 20% federal income tax withholding if the distribution is not directly rolled over. If the eligible rollover distribution is directly rolled over, there is no mandatory 20% federal income tax withholding. Eligible rollover distributions to employees under age 59 1/2 may be subject to an additional 10% federal income tax penalty if the distribution is not rolled over. After 2015, eligible rollover distributions from qualified plans may also be rolled over to a SIMPLE IRA. We anticipate that regulatory guidance will be necessary before we implement rollovers into SIMPLE IRAs. An employee's surviving spouse beneficiary may also roll over an eligible rollover distribution to another eligible retirement plan under certain circumstances. A non-spousal death beneficiary may be able to directly roll over death benefits to a new traditional inherited IRA under certain circumstances. Distributions from a qualified plan can also be rolled over to a Roth IRA. Any taxable portion of the amount rolled over will be taxed at the time of the rollover. See "Eligible rollover distributions and federal income tax withholding" in the SAI for a more detailed discussion. 37 TAX INFORMATION The IRS has issued ordering rules and related guidance on allocation between pre-tax and post-tax amounts on distributions from the plan before annuity payments start, including distributions to be made to multiple destinations, and the effect of direct rollovers. This guidance indicates that all disbursements from the plan that are "scheduled to be made at the same time" are treated as a single distribution even if the recipient has directed that the disbursement be divided among multiple destinations. Multiple destinations include payment to the recipient and direct rollovers to one or more eligible retirement plans. The guidance generally requires that the pre-tax amount for the aggregated distribution is first assigned to the amount directly rolled over to one or more eligible retirement plans (so that the pre-tax amount would not be currently taxable). If the recipient wants to divide the direct rollover amount among two or more eligible retirement plans, before the distribution is made, the recipient can choose how the pre-tax amount is to be allocated among the plans. (We expect to have forms for this choice.) If the pre-tax amount for the aggregated distribution is more than the amount directly rolled over, the guidance indicates that any remaining pre-tax amount is next assigned to any 60-day rollovers up to the amount of the 60-day rollovers. (Please note that the recipient is responsible for the tax treatment of 60-day rollovers and that our information report on Form 1099-R will reflect distribution to the recipient and any required 20% withholding.) The guidance further indicates that any remaining pre-tax amount after assignment of the pre-tax amount to direct rollovers and 60-day rollovers is includible in gross income. Finally, if the amount rolled over to an eligible retirement plan exceeds the portion of the pre-tax amount assigned or allocated to the plan, the excess is a post-tax amount. This guidance clarifies that a plan participant can use rollovers to separate the pre-tax and post-tax amounts of a distribution. For example, if a plan participant takes a distribution of $100,000 from a plan, $80,000 of which is pre-tax and $20,000 of which is attributable to non-Roth post-tax contributions, the participant could choose to allocate the distribution so that the entire pre-tax amount of $80,000 could be directly rolled over to a traditional IRA and the $20,000 non-Roth post-tax contributions could be rolled over to a Roth IRA. IN-PLAN ROTH ROLLOVER If the plan permits and according to plan terms, participants who are eligible to take a distribution from their 401(k) retirement plan can convert their existing plan account into the designated Roth account by either a direct rollover or by taking a distribution and then rolling over the account into the designated Roth account within 60 days. Any pre-tax amounts converted must be included in the participant's taxable income for the same year as the conversion. Tax law permits a plan to allow an internal direct transfer from a pre-tax or non-Roth post-tax account to a designated Roth account under the plan, even though the transferred amounts are not eligible for withdrawal by the individual electing the transaction. Although the transfer would be taxable, it is not clear that withdrawals would be permitted from the designated Roth account under the plan. ANNUITY OR INSTALLMENT PAYMENTS. Each payment you receive is ordinary income for tax purposes, except where you have a "cost basis" in the benefit. Your cost basis is equal to the amount of your post-tax employee contributions, plus any employer contributions you had to include in gross income in prior years. You may exclude from gross income a portion of each annuity or installment payment you receive. If you (and your survivor) continue to receive payments after you have received your cost basis in the contract, all amounts will be taxable. IN-SERVICE WITHDRAWALS. Some plans allow in-service withdrawals of post-tax contributions. The portion of each withdrawal attributable to cost basis is not taxable. The portion of each withdrawal attributable to earnings is taxable. Withdrawals are taxable only after they exceed your cost basis if (a) they are attributable to your pre-January 1, 1987 contributions under (b) plans that permitted those withdrawals as of May 5, 1986. In addition, 20% mandatory federal income tax withholding may also apply. PREMATURE DISTRIBUTIONS. You may be liable for an additional 10% penalty tax on all taxable amounts distributed before age 59 1/2 unless the distribution falls within a specified exception or is rolled over into an IRA or other eligible retirement plan. The exceptions to the penalty tax include (a) distributions made on account of your death or disability, (b) distributions beginning after separation from service in the form of a life annuity or installments over your life expectancy (or the joint lives or life expectancies of you and your beneficiary), (c) distributions due to separation from active service after age 55 and (d) distributions you use to pay deductible medical expenses. See IRS Form 5329 for more information on the additional 10% tax penalty. WITHHOLDING. In almost all cases, 20% mandatory income tax withholding will apply to all "eligible rollover distributions" that are not directly rolled over to a qualified plan, 403(b) plan, governmental employer 457 plan or traditional IRA. If a distribution is not an eligible rollover distribution, the recipient may elect out of withholding. The rate of withholding depends on the type of distribution. See "Eligible rollover distributions and federal income tax withholding" in the SAI. Under the IRS Pre-Approved Plan, we will withhold the tax and send you the remaining amount. Under an individually designed plan, we will pay the full amount of the distribution to the plan's trustee. The trustee is then responsible for withholding federal income tax upon distributions to you or your beneficiary. IMPACT OF TAXES TO AXA EQUITABLE Under existing federal income tax law, no taxes are payable on investment income and capital gains of the Funds that are applied to increase the reserves under the contracts. Accordingly, AXA Equitable does not anticipate that it will incur any federal income tax liability attributable to income allocated to the variable annuity contracts participating in the Funds and it does not currently impose a charge for federal income tax on this income when it computes unit values for the Funds. If changes in federal tax laws or interpretations thereof would result in AXA Equitable being taxed, then AXA Equitable may impose a charge against the Funds (on some or all contracts) to provide for payment of such taxes. AXA Equitable is 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 AXA Equitable is the owner of the assets from which tax benefits may be derived. 38 TAX INFORMATION 7. More information -------------------------------------------------------------------------------- ABOUT PROGRAM CHANGES OR TERMINATIONS AMENDMENTS. The contract has been amended in the past and we and the Trustees may agree to amendments in the future. No future change can affect annuity benefits in the course of payment. If certain conditions are met, we may: (1) terminate the offer of any of the investment options and (2) offer new investment options with different terms. TERMINATION. We may terminate the contract at any time. If the contract is terminated, we will not accept any further contributions. We may continue to hold amounts allocated to the Guaranteed Rate Accounts until maturity. Amounts already invested in the investment options may remain in the Program and you may also elect payment of benefits through us. ASSIGNMENT. You may not assign your rights or obligations under the contract without AXA Equitable's prior written consent. AXA Equitable may not assign its rights or obligations under the contract without your prior written consent, except that AXA Equitable will not require your written consent to assign the contract to a corporation in which it has a direct or indirect ownership interest, provided that AXA Equitable remains liable for the failure of that corporation to perform its obligations. IRS DISQUALIFICATION If your plan is found not to qualify under the Internal Revenue Code, we may: (1) return the plan's assets to the employer (in our capacity as the plan administrator) or (2) prevent plan participants from investing in the separate accounts. ABOUT THE SEPARATE ACCOUNTS Each Fund is one, or part of one, of our separate accounts. We established the separate accounts 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 investment funds for owners of our variable annuity contracts, including our contracts. The results of each separate account's operations are accounted for without regard to AXA Equitable's, or any other separate account's, operating results. We are the legal owner of all of the assets in the separate accounts and may withdraw any amounts we have in the separate accounts that exceed our reserves and other liabilities under variable annuity contracts. The amount of some of our obligations is based on the assets in the separate accounts. However, the obligations themselves are obligations of AXA Equitable. We reserve the right to take certain actions in connection with our operations and the operations of the investment funds as permitted by applicable law. If necessary, we will seek approval by participants in the Program. The separate accounts that we call the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth, and AllianceBernstein Balanced Funds commenced operations in 1968, 1969, and 1979 respectively. Separate Account No. 66, which holds the other Funds offered under the contract, was established in 1997. Because of exclusionary provisions, none of the Funds are subject to regulation under the Investment Company Act of 1940. Separate Account No. 66, however, purchases Class IA shares and Class IB/B shares of the Trusts. The Trusts are registered as open-end management investment companies under the 1940 Act. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. ABOUT THE GENERAL ACCOUNT Our general obligations and any guaranteed benefits under the contract, including those that apply to the Guaranteed Rate Accounts, Guaranteed Interest Option and Money Market Guarantee Account, 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 Funds. 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. 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, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. CYBERSECURITY We rely heavily on interconnected computer systems and digital data to conduct our variable product business. Because our variable 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, 39 MORE INFORMATION 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 release 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 Contract Value. For instance, systems failures and cyber-attacks may interfere with our processing of contract transactions, including the processing of orders from our website or with the underlying funds, impact our ability to calculate account unit values, 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 Contract to lose value. There can be no assurance that we or the underlying funds or our service providers will avoid losses affecting your Contract due to cyber-attacks or information security breaches in the future. ABOUT 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 contract owner's interest in the separate accounts nor would any of these proceedings be likely to have a material adverse effect upon the separate accounts, our ability to meet our obligations under the Program, or the distribution of group annuity contract interests under the Program. FINANCIAL STATEMENTS The financial statements of Separate Accounts 3, 4, 10, and 66, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The SAI is available free of charge. The financial statements of AXA Equitable have relevance to the contracts only to the extent that they bear upon the ability of AXA Equitable to meet its obligations under the contracts. You may request the SAI by writing to our Processing Office or calling 1-800-526-2701. ABOUT THE TRUSTEE As trustee, Reliance Trust Company serves as a party to the contract. It has no responsibility for the administration of the Program or for any distributions or duties under the contract. DISTRIBUTION OF THE CONTRACTS AXA Equitable performs all marketing and service functions under the contract. No sales commissions are paid with respect to units of interest in any of the separate accounts available under the contract; however, incentive compensation is paid to AXA Equitable employees performing these functions, based upon sales and the amount of first year plan contributions, as discussed in the SAI. The offering of the units is continuous. REPORTS WE PROVIDE AND AVAILABLE INFORMATION We send reports annually to employers showing the aggregate account balances of all participants and information necessary to complete annual IRS filings. The registration statement, including this prospectus and the SAI, can be obtained from the SEC's website at www.sec.gov. ACCEPTANCE The employer or plan sponsor, as the case may be: (1) is solely responsible for determining whether the Program is a suitable funding vehicle and (2) should carefully read the prospectus and other materials before entering into an Adoption Agreement. 40 MORE INFORMATION Appendix I: Condensed financial information -------------------------------------------------------------------------------- These selected per unit data and ratios for the years ended December 31, 2006 through December 31, 2015 have been derived from the financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The financial statements of each of the Funds as well as the consolidated financial statements of AXA Equitable are contained in the SAI. Information is provided for the period that each Fund has been available under the Program, but not longer than ten years. SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY ALLIANCEBERNSTEIN MID CAP GROWTH FUND -- INCOME, EXPENSES AND CAPITAL CHANGES PER UNIT OUTSTANDING THROUGHOUT THE YEARS INDICATED AND OTHER SUPPLEMENTARY DATA
---------------------------------------------------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ---------------------------------------------------------------------------------------------------------------------------- Income $ 0.48 $ 0.55 $ 0.38 $ 0.32 $ 0.61 $ 0.83 $ 0.23 $ 0.10 $ 0.13 $ 0.23 Expenses (Note A) (0.76) (0.71) (0.64) (0.52) (0.52) (0.35) (0.34) (0.90) (1.03) (0.97) --------------------------------------------------------------------------------------------------------------------------- Net investment gain (loss) (0.28) (0.16) (0.26) (0.20) 0.09 0.48 (0.11) (0.80) (0.90) (0.74) Net realized and unrealized gain (loss) on investments (Note B) 1.31 2.20 26.16 9.27 1.57 16.73 16.29 (27.53) 7.13 1.00 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in AllianceBernstein Mid Cap Growth Fund Unit Value 1.03 2.04 25.90 9.07 1.66 17.21 16.18 (28.33) 6.23 0.26 AllianceBernstein Mid Cap Growth Fund Unit Value (Note C): Beginning of year 105.90 103.86 77.96 68.89 67.23 50.02 33.84 62.17 55.94 55.68 --------------------------------------------------------------------------------------------------------------------------- End of year $106.93 $105.90 $103.86 $77.96 $68.89 $67.23 $50.02 $ 33.84 $62.17 $55.94 =========================================================================================================================== Ratio of expenses to average net assets attributable to the Program 0.69% 0.68% 0.70% 0.69% 0.73% 0.67% 0.87% 1.80% 1.72% 1.73% Ratio of net investment income (loss) to average net assets attributable to the Program (0.25%) (0.16%) (0.29)% (0.26)% 0.13% 0.87% (0.27)% (1.60)% (1.50)% (1.33)% Number of AllianceBernstein Mid Cap Growth Fund Units outstanding at end of year (000's) 197 221 246 274 288 327 321 338 353 390 Portfolio turnover rate (Note D) 79% 116% 137% 131% 137% 151% 217% 129% 111% 120% =======================================================================================================================
See notes following these tables. I-1 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY ALLIANCEBERNSTEIN GROWTH EQUITY FUND -- INCOME, EXPENSES AND CAPITAL CHANGES PER UNIT OUTSTANDING THROUGHOUT THE YEARS INDICATED AND OTHER SUPPLEMENTARY DATA
------------------------------------------------------------------------------------------------------------------------------ YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------------------ Income $ 9.73 $ 8.95 $ 7.69 $ 7.04 $ 5.21 $ 5.81 $ 3.88 $ 2.12 $ 2.28 $ 2.13 Expenses (Note A) (2.36) (2.04) (1.91) (1.28) (1.31) (1.05) (1.08) (4.46) (5.21) (4.68) ----------------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 7.37 6.91 5.78 5.76 3.90 4.76 2.80 (2.34) (2.93) (2.55) Net realized and unrealized gain (loss) on investments (Note B) 22.83 58.54 122.90 46.96 7.02 43.77 74.65 (147.82) 41.45 (2.44) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in AllianceBernstein Growth Equity Fund Unit Value 30.20 65.45 128.68 52.72 10.92 48.53 77.45 (150.16) 38.52 (4.99) AllianceBernstein Growth Equity Fund Unit Value (Note C): Beginning of year 584.84 519.39 390.71 337.99 327.07 278.54 201.09 351.25 312.73 317.72 ----------------------------------------------------------------------------------------------------------------------------- End of year $615.04 $584.84 $519.39 $390.71 $337.99 $327.07 $278.54 $ 201.09 $351.25 $312.73 ============================================================================================================================= Ratio of expenses to average net assets attributable to the Program 0.39% 0.36% 0.42% 0.33% 0.38% 0.37% 0.47% 1.57% 1.56% 1.52% Ratio of net income (loss) to average net assets attributable to the Program 1.22% 1.26% 1.29% 1.54% 1.14% 1.67% 1.23% (0.83)% (0.88)% (0.83)% Number of AllianceBernstein Growth Equity Fund Units outstanding at end of year (000's) 57 65 69 77 80 90 100 103 111 125 Portfolio turnover rate (Note D) 19% 16% 17% 21% 19% 30% 118% 106% 60% 55% =========================================================================================================================
See notes following these tables. I-2 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY ALLIANCEBERNSTEIN BALANCED FUND -- INCOME, EXPENSES AND CAPITAL CHANGES PER UNIT OUTSTANDING THROUGHOUT THE YEARS INDICATED AND OTHER SUPPLEMENTARY DATA
--------------------------------------------------------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, --------------------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 --------------------------------------------------------------------------------------------------------------------------------- Income $ 1.77 $ 1.89 $ 1.56 $ 1.57 $ 1.50 $ 1.76 $ 1.41 $ 1.88 $ 1.82 $ 1.48 Expenses (Note A) (0.45) (0.43) (0.45) (0.38) (0.33) (0.28) (0.22) (0.80) (0.97) (0.91) --------------------------------------------------------------------------------------------------------------------------------- Net investment income 1.32 1.46 1.11 1.19 1.17 1.48 1.19 1.08 0.85 0.57 Net realized and unrealized gain (loss) on investments (Note B) (1.28) 1.49 8.15 5.51 (1.42) 3.25 7.95 (17.08) 1.21 3.77 --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in AllianceBernstein Balanced Fund Unit Value 0.04 2.95 9.26 6.70 (0.25) 4.73 9.14 (16.00) 2.06 4.34 AllianceBernstein Balanced Fund Unit Value (Note C): Beginning of year 70.23 67.28 58.02 51.32 51.57 46.84 37.70 53.70 51.64 47.30 --------------------------------------------------------------------------------------------------------------------------------- End of year $70.27 $70.23 $67.28 $58.02 $51.32 $51.57 $46.84 $ 37.70 $53.70 $51.64 ================================================================================================================================= Ratio of expenses to average net assets attributable to the Program 0.64% 0.61% 0.71% 0.71% 0.63% 0.60% 0.55% 1.69% 1.80% 1.87% Ratio of net investment income to average net assets attributable to the Program 1.85% 2.10% 1.79% 2.18% 2.22% 3.11% 2.92% 2.29% 1.60% 1.16% Number of AllianceBernstein Balanced Fund Units outstanding at end of year (000's) 351 398 431 481 479 535 573 596 677 692 Portfolio turnover rate (Note D) 143% 111% 111% 94% 84% 83% 94% 61% 105% 146% ==============================================================================================================================
A. Enrollment fees are not included above and did not affect the AllianceBernstein Growth Equity Fund, AllianceBernstein Mid Cap Growth Fund or AllianceBernstein Balanced Fund unit values. Enrollment fees were generally deducted from contributions to the Program. B. See Note 2 to Financial Statements of Separate Accounts No. 3 (Pooled), 4 (Pooled) and 10 (Pooled), which can be found in the SAI. C. The value for an AllianceBernstein Growth Equity Fund unit was established at $10.00 on January 1, 1968 under the National Association of Realtors Members Retirement Program (NAR Program). The NAR Program was merged into the Members Retirement Program on December 27, 1984. The values for an AllianceBernstein Mid Cap Growth Fund and an AllianceBernstein Balanced Fund unit were established at $10.00 on May 1, 1985, the date on which the Funds were first made available under the Program. D. The portfolio turnover rate includes all long-term U.S. Government securities, but excludes all short-term U.S. Government securities and all other securities whose maturities at the time of acquisition were one year or less. Represents the annual portfolio turnover rate for the entire separate account. Income, expenses, gains and losses shown above pertain only to participants' accumulations attributable to the Program. Other plans also participate in the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds and may have operating results and other supplementary data different from those shown above. I-3 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 66 UNIT VALUES UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR THESE FUNDS AT YEAR END FOR EACH VARIABLE INVESTMENT FUND, EXCEPT FOR THOSE FUNDS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2015.
----------------------------------------------------------------------------------------------------------------------- FOR THE YEAR ENDING DECEMBER 31, -------------------------------------------------------------------- INCEPTION 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DATE -------------------------------------------------------------------------------------------------------------- ALL ASSET AGGRESSIVE-ALT 25 ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- $10.03 $11.84 $12.11 $11.58 11/15/12 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- 1 2 6 ----------------------------------------------------------------------------------------------------------------------- ALL ASSET GROWTH-ALT 20 ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- $10.05 $11.46 $11.73 $11.27 11/15/12 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- 6 -- 8 7 ----------------------------------------------------------------------------------------------------------------------- ALL ASSET MODERATE GROWTH-ALT 15 ----------------------------------------------------------------------------------------------------------------------- Unit value -- -- -- -- -- -- $10.02 $11.13 $11.40 $10.97 11/15/12 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- -- -- -- -- -- -- -- -- 1 ----------------------------------------------------------------------------------------------------------------------- AXA AGGRESSIVE ALLOCATION ----------------------------------------------------------------------------------------------------------------------- Unit value -- $10.02 $6.03 $ 7.67 $ 8.68 $ 8.03 $ 9.16 $11.58 $12.13 $11.91 5/1/07 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 45 81 169 234 243 192 203 209 216 ----------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE ALLOCATION ----------------------------------------------------------------------------------------------------------------------- Unit value -- $10.27 $9.05 $ 9.93 $10.66 $10.86 $11.35 $11.84 $12.15 $12.12 5/1/07 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 20 67 87 104 147 157 131 108 105 ----------------------------------------------------------------------------------------------------------------------- AXA CONSERVATIVE-PLUS ALLOCATION ----------------------------------------------------------------------------------------------------------------------- Unit value -- $10.21 $8.14 $ 9.31 $10.16 $10.08 $10.83 $11.93 $12.31 $12.22 7/6/07 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 26 61 59 65 66 81 104 81 88 ----------------------------------------------------------------------------------------------------------------------- AXA GLOBAL EQUITY MANAGED VOLATILITY ----------------------------------------------------------------------------------------------------------------------- Unit value $11.75 $16.51 $6.96 $10.45 $11.65 $10.21 $11.95 $14.37 $14.61 $14.36 5/1/06 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 42 151 168 205 186 158 161 133 119 105 ----------------------------------------------------------------------------------------------------------------------- AXA INTERNATIONAL CORE MANAGED VOLATILITY ----------------------------------------------------------------------------------------------------------------------- Unit value $13.52 $15.41 $8.41 $11.38 $12.43 $10.32 $12.01 $14.10 $13.22 $12.65 5/18/01 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 260 291 273 307 259 239 230 209 181 146 ----------------------------------------------------------------------------------------------------------------------- AXA LARGE CAP GROWTH MANAGED VOLATILITY ----------------------------------------------------------------------------------------------------------------------- Unit value $ 5.49 $ 6.28 $3.83 $ 5.17 $ 5.92 $ 5.70 $ 6.49 $ 8.78 $ 9.75 $10.14 5/1/00 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 446 510 547 641 655 639 593 456 393 325 ----------------------------------------------------------------------------------------------------------------------- AXA LARGE CAP VALUE MANAGED VOLATILITY ----------------------------------------------------------------------------------------------------------------------- Unit value $15.27 $14.42 $8.09 $ 9.74 $10.98 $10.42 $12.07 $15.99 $17.94 $17.21 5/18/01 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 697 714 653 687 645 605 615 561 523 472 ----------------------------------------------------------------------------------------------------------------------- AXA MID CAP VALUE MANAGED VOLATILITY ----------------------------------------------------------------------------------------------------------------------- Unit value $15.80 $15.39 $9.20 $12.50 $15.31 $13.86 $16.44 $21.88 $24.25 $23.39 8/1/97 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) 663 638 580 583 481 454 439 395 372 324 ----------------------------------------------------------------------------------------------------------------------- AXA MODERATE ALLOCATION ----------------------------------------------------------------------------------------------------------------------- Unit value -- $10.17 $7.60 $ 8.89 $ 9.77 $ 9.54 $10.38 $11.73 $12.09 $11.98 7/6/07 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 24 284 740 1,066 1,229 1,377 1,486 1,532 1,583 ----------------------------------------------------------------------------------------------------------------------- AXA MODERATE-PLUS ALLOCATION ----------------------------------------------------------------------------------------------------------------------- Unit value -- $10.09 $6.81 $ 8.30 $ 9.26 $ 8.80 $ 9.82 $11.76 $12.20 $12.04 7/6/07 ----------------------------------------------------------------------------------------------------------------------- Number of units outstanding (000's) -- 6 28 81 190 160 78 88 103 129 -----------------------------------------------------------------------------------------------------------------------
I-4 APPENDIX I: CONDENSED FINANCIAL INFORMATION UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR THESE FUNDS AT YEAR END FOR EACH VARIABLE INVESTMENT FUND, EXCEPT FOR THOSE FUNDS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2015. (CONTINUED)
------------------------------------------------------------------------------------------------------------------------ FOR THE YEAR ENDING DECEMBER 31, --------------------------------------------------------------------- INCEPTION 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DATE --------------------------------------------------------------------------------------------------------------- AXA/AB SMALL CAP GROWTH ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.04 $13.87 $14.36 $13.94 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- -- 12 26 27 ------------------------------------------------------------------------------------------------------------------------ CHARTER/SM/ MULTI-SECTOR BOND ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- $ 7.72 $ 8.47 $ 9.03 $ 9.49 $ 9.99 $ 9.90 $10.13 $10.07 5/18/01 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- 4 51 101 115 127 84 80 92 ------------------------------------------------------------------------------------------------------------------------ EQ/BOSTON ADVISORS EQUITY INCOME ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $ 9.98 $13.15 $14.29 $14.04 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 8 18 20 24 ------------------------------------------------------------------------------------------------------------------------ EQ/CALVERT SOCIALLY RESPONSIBLE ------------------------------------------------------------------------------------------------------------------------ Unit Value $ 8.48 $ 9.41 $ 5.10 $ 6.67 $ 7.51 $ 7.53 $ 8.79 $11.80 $13.40 $13.46 5/1/00 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 169 175 208 249 272 251 275 242 204 168 ------------------------------------------------------------------------------------------------------------------------ EQ/CAPITAL GUARDIAN RESEARCH ------------------------------------------------------------------------------------------------------------------------ Unit value $17.96 $18.06 $10.79 $14.18 $16.42 $17.07 $20.04 $26.40 $29.17 $29.72 11/22/02 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 362 451 409 385 339 341 329 279 259 240 ------------------------------------------------------------------------------------------------------------------------ EQ/EQUITY 500 INDEX ------------------------------------------------------------------------------------------------------------------------ Unit value $ 9.37 $ 9.73 $ 6.04 $ 7.60 $ 8.69 $ 8.82 $10.16 $13.36 $15.09 $15.21 10/6/00 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 1,844 1,846 1,811 2,024 1,954 1,828 1,759 1,700 1,636 1,470 ------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO MERGERS AND ACQUISITIONS ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.14 $11.25 $11.43 $11.73 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- -- 16 10 11 ------------------------------------------------------------------------------------------------------------------------ EQ/GAMCO SMALL COMPANY VALUE ------------------------------------------------------------------------------------------------------------------------ Unit value $10.90 $11.78 $ 8.08 $11.43 $15.16 $14.63 $17.24 $23.97 $24.70 $23.29 5/1/06 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 16 47 74 110 171 181 182 148 124 120 ------------------------------------------------------------------------------------------------------------------------ EQ/INTERMEDIATE GOVERNMENT BOND ------------------------------------------------------------------------------------------------------------------------ Unit value $10.44 $11.04 $11.32 $11.06 $11.53 $12.14 $12.26 $12.05 $12.23 $12.28 11/22/02 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 232 262 303 284 279 349 396 321 324 320 ------------------------------------------------------------------------------------------------------------------------ EQ/INTERNATIONAL EQUITY INDEX ------------------------------------------------------------------------------------------------------------------------ Unit value $23.73 $26.30 $12.85 $16.37 $17.27 $15.20 $17.67 $21.46 $19.98 $19.55 11/22/02 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 919 880 807 788 723 656 613 563 515 485 ------------------------------------------------------------------------------------------------------------------------ EQ/LARGE CAP GROWTH INDEX ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $ 9.72 $12.88 $14.45 $15.15 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- -- 9 19 34 ------------------------------------------------------------------------------------------------------------------------ EQ/MFS INTERNATIONAL GROWTH ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.41 $11.83 $11.23 $11.25 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 3 32 40 34 ------------------------------------------------------------------------------------------------------------------------ EQ/MID CAP INDEX ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.27 $13.61 $14.83 $14.40 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 2 13 30 39 ------------------------------------------------------------------------------------------------------------------------
I-5 APPENDIX I: CONDENSED FINANCIAL INFORMATION UNIT VALUES AND NUMBER OF UNITS OUTSTANDING FOR THESE FUNDS AT YEAR END FOR EACH VARIABLE INVESTMENT FUND, EXCEPT FOR THOSE FUNDS BEING OFFERED FOR THE FIRST TIME AFTER DECEMBER 31, 2015. (CONTINUED)
------------------------------------------------------------------------------------------------------------------------ FOR THE YEAR ENDING DECEMBER 31, --------------------------------------------------------------------- INCEPTION 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 DATE --------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- $10.00 $10.00 $10.00 $10.00 $10.00 $ 9.99 $ 9.99 1/1/09 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- 624 980 1,447 1,584 1,416 1,395 1,383 ------------------------------------------------------------------------------------------------------------------------ EQ/MORGAN STANLEY MID CAP GROWTH ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.13 $14.03 $13.92 $13.16 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- -- 2 11 10 ------------------------------------------------------------------------------------------------------------------------ EQ/PIMCO ULTRA SHORT BOND ------------------------------------------------------------------------------------------------------------------------ Unit value $10.23 $11.27 $10.71 $11.56 $11.66 $11.64 $11.81 $11.82 $11.80 $11.77 5/1/06 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 8 32 119 160 185 189 207 233 209 177 ------------------------------------------------------------------------------------------------------------------------ EQ/SMALL COMPANY INDEX ------------------------------------------------------------------------------------------------------------------------ Unit value $15.59 $15.14 $ 9.87 $12.45 $15.66 $15.03 $17.37 $23.86 $25.02 $23.87 5/18/01 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 312 307 284 289 299 255 256 246 212 184 ------------------------------------------------------------------------------------------------------------------------ EQ/T. ROWE PRICE GROWTH STOCK ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $ 9.76 $13.46 $14.61 $16.11 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 2 12 28 26 ------------------------------------------------------------------------------------------------------------------------ EQ/WELLS FARGO OMEGA GROWTH ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $ 9.85 $13.70 $14.22 $14.39 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 4 19 16 15 ------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER CORE BOND ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- $10.03 $ 9.79 $10.15 $10.16 11/15/12 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- 50 80 104 160 ------------------------------------------------------------------------------------------------------------------------ MULTIMANAGER TECHNOLOGY ------------------------------------------------------------------------------------------------------------------------ Unit value $12.67 $14.82 $ 7.76 $12.30 $14.48 $13.78 $15.63 $21.18 $24.05 $25.55 5/14/04 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) 157 172 177 223 235 214 219 182 195 179 ------------------------------------------------------------------------------------------------------------------------ TARGET 2015 ALLOCATION ------------------------------------------------------------------------------------------------------------------------ Unit value -- $10.15 $ 6.98 $ 8.40 $ 9.30 $ 9.04 $10.02 $11.43 $11.77 $11.54 5/1/07 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- 44 113 168 218 178 183 204 215 179 ------------------------------------------------------------------------------------------------------------------------ TARGET 2025 ALLOCATION ------------------------------------------------------------------------------------------------------------------------ Unit value -- $10.14 $ 6.52 $ 8.03 $ 8.99 $ 8.64 $ 9.75 $11.60 $12.07 $11.82 5/1/07 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- 12 123 155 230 230 206 213 217 218 ------------------------------------------------------------------------------------------------------------------------ TARGET 2035 ALLOCATION ------------------------------------------------------------------------------------------------------------------------ Unit value -- $10.12 $ 6.20 $ 7.79 $ 8.78 $ 8.37 $ 9.55 $11.68 $12.20 $11.95 5/1/07 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- 6 15 31 46 57 90 116 136 138 ------------------------------------------------------------------------------------------------------------------------ TARGET 2045 ALLOCATION ------------------------------------------------------------------------------------------------------------------------ Unit value -- $10.11 $ 5.87 $ 7.50 $ 8.49 $ 8.02 $ 9.26 $11.59 $12.14 $11.87 5/1/07 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- 2 12 31 38 47 60 92 102 112 ------------------------------------------------------------------------------------------------------------------------ TARGET 2055 ALLOCATION ------------------------------------------------------------------------------------------------------------------------ Unit value -- -- -- -- -- -- -- -- -- $ 9.22 5/26/15 ------------------------------------------------------------------------------------------------------------------------ Number of units outstanding (000's) -- -- -- -- -- -- -- -- -- 4 ------------------------------------------------------------------------------------------------------------------------
I-6 APPENDIX I: CONDENSED FINANCIAL INFORMATION Statement of additional information -------------------------------------------------------------------------------- TABLE OF CONTENTS
PAGE Who is AXA Equitable? 2 Funding of the Program 2 Your responsibilities as employer 2 Procedures for withdrawals, distributions and transfers 2 Provisions of the IRS Pre-Approved Plan 4 Investment restrictions and certain investment techniques applicable to the AllianceBernstein 6 Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds Portfolio holdings policy for the Pooled Separate Accounts 8 Fund transactions 8 Investment management and accounting fee 9 Portfolio managers' information (AllianceBernstein Growth Equity Fund, AllianceBernstein 10 Mid Cap Growth Fund and AllianceBernstein Balanced Fund) Investment professional conflict of interest disclosure 13 Portfolio manager compensation 13 Distribution of the contracts 14 Custodian and independent registered public accounting firm 14 Our management 15 Financial statements index 21 Financial statements FSA-1
CLIP AND MAIL TO US TO RECEIVE A STATEMENT OF ADDITIONAL INFORMATION To: The Members Retirement Program P.O. Box 4875 Syracuse, NY 13221
---------------------------------------------------------------------------------- Please send me a copy of the Statement of Additional Information for the Members Retirement Program prospectus dated May 1, 2016. ---------------------------------------------------------------------------------- Name ---------------------------------------------------------------------------------- Address ---------------------------------------------------------------------------------- City State Zip
Copyright 2016 by AXA Equitable Life Insurance Company. All rights reserved. Supplement dated May 1, 2016 to Prospectus dated May 1, 2016 -------------------------------------------------------------------------------- MEMBERS RETIREMENT PROGRAMS funded under contracts with AXA EQUITABLE LIFE INSURANCE COMPANY 1290 Avenue of the Americas, New York, New York 10104 Toll-Free Telephone 800-223-5790 ------------------- VARIABLE ANNUITY BENEFITS ------------------- This Prospectus Supplement should be read and retained for future reference by Participants in the Members Retirement Programs who are considering variable annuity payment benefits after retirement. Both the Prospectus and statement of additional information are hereby incorporated by reference. This Prospectus Supplement is not authorized for distribution unless accompanied or preceded by the Prospectus dated May 1, 2016 for the appropriate Members Retirement Program. -------------------------------------------------------------------------------- THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS: ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. -------------------------------------------------------------------------------- RETIREMENT BENEFITS When you become eligible to receive benefits under a Members Retirement Program, you may select one or more of the following forms of distribution, which are available in variable or fixed form. The law requires that if the value of your Account Balance is more than $5,000, you must receive a Qualified Joint and Survivor Annuity unless your Spouse consents to a different election. Life Annuity -- annuity providing monthly payments for your life. No payments will be made after your death, even if you have received only one payment. Life Annuity Period Certain -- an annuity providing monthly payments for your life or, if longer, a specified period of time. If you die before the end of that specified period, payments will continue to your beneficiary until the end of the period. Subject to legal limitations, you may specify a minimum payment period of 5, 10, 15 or 20 years; the longer the specified period, the smaller the monthly payments will be. Joint and Survivor Annuity -- Period Certain -- an annuity providing monthly payments for your life and that of your beneficiary or, if longer, a specified period of time. If you and your beneficiary both die before the end of the specified period, payments will continue to your contingent beneficiary until the end of the period. Subject to legal limitations, you may specify a minimum payment period of 5, 10, 15 or 20 years; the longer the specified period, the smaller the monthly payments will be. How Annuity Payments are Made When your distribution of benefits under an annuity begins, your Units in the Funds are redeemed. Part or all of the proceeds, plus part or all of your Account Balance in the General Account Options, may be used to purchase an annuity. The minimum amount that can be used to purchase any type of annuity is $5,000. Applicable premium taxes will be deducted. Annuity payments may be fixed or variable. FIXED ANNUITY PAYMENTS. Fixed annuity payments are determined from our annuity rate tables in effect at the time the first annuity payment is made. The minimum amount of the fixed payments is determined from tables in our contract with the Trustees, which show the amount of proceeds necessary to purchase each $1 of monthly annuity payments (after deduction of any applicable taxes and the annuity administrative charge). These tables are designed to determine the amounts required to pay for the annuity selected, taking into account our administrative and investment expenses and mortality and expense risks. The size of your payment will depend upon the form of annuity chosen, your age and the age of your beneficiary if you select a joint and survivor annuity. If our current group annuity rates for payment of proceeds would produce a larger payment, those rates will apply instead of the minimums in the contract tables. If we give any group pension client with a qualified plan a better annuity rate than those currently available for the Program, we will also make those rates available to Program participants. Under our contract with the Trustees, we may change the tables but not more frequently than once every five years. Fixed annuity payments will not fluctuate during the payment period. VARIABLE ANNUITY PAYMENTS. Variable annuity payments are funded through our Separate Account No. 4 (Pooled) (the "Fund"), through the purchase of Annuity Units. The number of Annuity Units purchased is equal to the amount of the first annuity payment divided by the Annuity Unit Value for the due date of the first annuity payment. The amount of the first annuity payment is determined in the same manner for a variable annuity as it is for a fixed annuity. The number of Annuity Units stays the same throughout the payment period for the variable annuity but the Annuity Unit Value changes to reflect the investment income and the realized and unrealized capital gains and losses of the Fund, after adjustment for an assumed base rate of return of 5-3/4%, described below. The amounts of variable annuity payments are determined as follows: Payments normally start as of the first day of the second calendar month following our receipt of the proper forms. The first two monthly payments are the same. Payments after the first two will vary according to the investment performance of the Fund. Each monthly payment will be calculated by multiplying the number of Annuity Units credited to you by the Annuity Unit Value for the first business day of the calendar month before the due date of the payment. The Annuity Unit Value was set at $1.1553 as of July 1, 1969, the first day that Separate Account No. 4 (Pooled) was operational. For any month after that date, it is the Annuity Unit Value for the preceding month multiplied by the change factor for the current month. The change factor gives effect to the assumed annual base rate of return of 5.75% and to the actual investment experience of the Fund. Because of the adjustment for the assumed base rate of return, the Annuity Unit Value rises and falls depending on whether the actual rate of investment return is higher or lower than 5-3/4%. 2 Illustration of Changes in Annuity Payments. To show how we determine variable annuity payments from month to month, assume that the amount you applied to purchase an annuity is enough to fund an annuity with a monthly payment of $363 and that the Annuity Unit Value for the due date of the first annuity payment is $1.05. The number of annuity units credited under your certificate would be 345.71 (363 divided by 1.05 = 345.71). If the third monthly payment is due on March 1, and the Annuity Unit Value for February was $1.10, the annuity payment for March would be the number of units (345.71) times the Annuity Unit Value ($1.10), or $380.28. If the Annuity Unit Value was $1.00 on March 1, the annuity payment for April would be 345.71 times $1.00 or $345.71. Summary of Annuity Unit Values for the Fund This table shows the Annuity Unit Values with an assumed base rate of return of 5.75%.
First Business Day of Annuity Unit Value --------------------- ------------------ October 1990 $ 3.8569 October 1991 $ 5.4677 October 1992 $ 5.1818 October 1993 $ 6.3886 October 1994 $ 6.1563 October 1995 $ 7.4970 October 1996 $ 8.0828 October 1997 $11.0300 October 1998 $ 7.5963 October 1999 $ 9.8568 October 2000 $10.6810 October 2001 $ 7.3761 October 2002 $ 5.3455 October 2003 $ 6.3322 October 2004 $ 6.7242 October 2005 $ 7.4953 October 2006 $ 6.9450 October 2007 $ 7.9366 October 2008 $ 6.4923 October 2009 $ 5.1077 October 2010 $ 5.3931 October 2011 $6.09800 October 2012 $ 6.9849 October 2013 $ 7.7367 October 2014 $ 9.1963 October 2015 $ 8.8121
THE FUND The Fund (Separate Account No. 4 (Pooled)) was established pursuant to the Insurance law of the State of New York in 1969. It is an investment account used to fund benefits under group annuity contracts and other agreements for tax-deferred retirement programs administered by us. For a full description of the Fund, its investment policies, the risks of an investment in the Fund and information relating to the valuation of Fund assets, see the description of the Fund in our May 1, 2016 prospectus and the Statement of Additional Information. INVESTMENT MANAGER AXA Equitable's Board of Directors has delegated responsibility to a committee to authorize or approve investments in the Fund. That committee may exercise its investment authority directly or it may delegate it, in whole or in part, to a third part investment advisor. The committee has delegated responsibility to AllianceBernstein L.P. ("AllianceBernstein") to manage the Fund. Subject to that committee's broad supervisory authority, AllianceBernstein's investment officers and managers have complete discretion over the assets of the Fund and have been given discretion as to sales and, within specified limits, purchases of stocks, other equity securities and certain debt securities. When an investment opportunity arises that is consistent with the objectives of more than one account, investment opportunities are allocated among accounts in an impartial manner based on certain factors such as investment objective and current investment and cash positions. 3 AllianceBernstein is registered as an investment advisor under the Investment Advisers Act of 1940, as amended. We are the majority-owners of AllianceBernstein, a limited partnership. AllianceBernstein acts as investment adviser to various separate accounts and general accounts of AXA Equitable and other affiliated insurance companies. AllianceBernstein also provides investment management and advisory services to mutual funds, endowment funds, insurance companies, foreign entities, qualified and non-tax qualified corporate funds, public and private pension and profit-sharing plans, foundations and tax-exempt organizations. As of December 31, 2015, AllianceBernstein had total assets under management of $467 billion. AllianceBernstein's main office is located at 1345 Avenue of the Americas, New York, New York 10105. Fund Transactions The Fund is charged for securities brokers commissions, transfer taxes and other fees relating to securities transactions. Transactions in equity securities for the Fund are executed primarily through brokers which are selected by AllianceBernstein/AXA Equitable and receive commissions paid by the Fund. For 2015, 2014 and 2013, the Fund paid $1,633, $1,084 and $1,437, respectively, in brokerage commissions. For a full description of our policies relating to the selection of brokers, see the description of the Fund in our May 1, 2016 Statement of Additional Information. 4 FINANCIAL STATEMENTS The financial statements of the Fund reflect applicable fees, charges and other expenses under the Members Retirement Programs as in effect during the periods covered, as well as the charges against the account made in accordance with the terms of all other contracts participating in the account.
Separate Account No. 4 (Pooled): Page Report of Independent Registered Public FSA-1 Accounting Firm Statement of Assets and Liabilities, FSA-2 December 31, 2015 Statement of Operations for the Year FSA-3 Ended December 31, 2015 Statements of Changes in Net Assets FSA-4 for the Years Ended December 31, 2015 and 2014 Portfolio of Investments FSA-5 December 31, 2015 Notes to Financial Statements FSA-13
5 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of AXA Equitable Life Insurance Company and Contractowners of Separate Account No. 4 of AXA Equitable Life Insurance Company: In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Separate Account No. 4 (Pooled) of AXA Equitable Life Insurance Company (''AXA Equitable'') at December 31, 2015, and the results of its operations, the changes in its net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of AXA Equitable's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP New York, New York April 18, 2016 FSA-1 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $51,075,617)......... $82,017,887 Cash......................................................... 468,238 Interest and dividends receivable............................ 81,464 Fees receivable from Contractowners.......................... 14,131 ----------- Total assets.............................................. 82,581,720 ----------- LIABILITIES: Due to AXA Equitable's General Account....................... 7,366 Accrued custody and bank fees................................ 8,858 Administrative fees payable.................................. 766 Asset management fee payable................................. 25,706 Accrued expenses............................................. 65,650 Variation margin due to broker............................... 2,880 ----------- Total liabilities......................................... 111,226 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION. $82,470,494 =========== Amount retained by AXA Equitable in Separate Account No. 4... $ 5,242,960 Net assets attributable to contractowners.................... 40,149,073 Net assets allocated to contracts in payout period........... 37,078,461 ----------- NET ASSETS................................................... $82,470,494 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 2,516 $17,164.79 RIA........... 1,891 1,586.06 MRP........... 56,626 615.04 EPP........... 845 1,645.69
----------- The accompanying notes are an integral part of these financial statements. FSA-2 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends (net of foreign taxes withheld of $137)................................ $ 1,436,537 ----------- Total investment income......................................................... 1,436,537 ----------- EXPENSES (NOTE 6): Investment management fees....................................................... (122,972) Custody and bank fees............................................................ (8,050) Other operating expenses......................................................... (66,917) ----------- Total expenses.................................................................. (197,939) ----------- NET INVESTMENT INCOME.............................................................. 1,238,598 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS (NOTE 2): Net realized gain from investments............................................... 11,232,955 Net realized loss on futures contracts........................................... (36,841) Change in unrealized depreciation of investments................................. (7,465,306) Change in unrealized depreciation on futures contracts........................... (9,337) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FUTURES CONTRACTS.............. 3,721,471 ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS.............................. $ 4,960,069 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-3 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income..................................................................... $ 1,238,598 $ 1,259,822 Net realized gain on investments and futures contracts.................................... 11,196,114 7,695,542 Net change in unrealized appreciation (depreciation) of investments and futures contracts. (7,474,643) 1,679,002 ------------ ------------ Net increase in net assets attributable to operations.................................... 4,960,069 10,634,366 ------------ ------------ FROM CONTRACTOWNER TRANSACTIONS: Contributions............................................................................. 3,591,850 4,896,954 Withdrawals............................................................................... (12,757,209) (10,673,660) Asset management fees (Note 6)............................................................ (63,578) (62,039) Administrative fees (Note 6).............................................................. (342,602) (376,762) ------------ ------------ Net decrease in net assets attributable to contractowner transactions.................... (9,571,539) (6,215,507) ------------ ------------ Net increase (decrease) in net assets attributable to AXA Equitable's transactions*...... (4,498,097) 2,263 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS........................................................... (9,109,567) 4,421,122 NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD......... 91,580,061 87,158,939 ------------ ------------ NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD............... $ 82,470,494 $ 91,580,061 ============ ============
----------- The accompanying notes are an integral part of these financial statements. * Excludes $5,192,000 of surplus transfers from contractowners to AXA Equitable retention account. FSA-4 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------------- COMMON STOCKS -- 99.5% INFORMATION TECHNOLOGY -- 27.8% COMMUNICATIONS EQUIPMENT -- 0.5% Arista Networks, Inc./(a)/............................ 190 $ 14,790 ARRIS Group, Inc./(a)/................................ 150 4,586 CommScope Holding Co., Inc./(a)/...................... 266 6,887 F5 Networks, Inc./(a)/................................ 600 58,176 Harris Corp........................................... 180 15,642 Juniper Networks, Inc................................. 530 14,628 Motorola Solutions, Inc............................... 1,370 93,776 Palo Alto Networks, Inc./(a)/......................... 610 107,445 QUALCOMM, Inc......................................... 1,840 91,972 ---------- 407,902 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% Amphenol Corp. -- Class A............................. 2,310 120,651 CDW Corp./DE.......................................... 941 39,560 Cognex Corp........................................... 600 20,262 FLIR Systems, Inc..................................... 680 19,088 Ingram Micro, Inc. -- Class A......................... 50 1,519 IPG Photonics Corp./(a)/.............................. 260 23,182 Jabil Circuit, Inc.................................... 250 5,822 Keysight Technologies, Inc./(a)/...................... 1,050 29,746 National Instruments Corp............................. 100 2,869 Trimble Navigation Ltd./(a)/.......................... 80 1,716 Zebra Technologies Corp. -- Class A/(a)/.............. 420 29,253 ---------- 293,668 ---------- INTERNET SOFTWARE & SERVICES -- 7.5% Akamai Technologies, Inc./(a)/........................ 1,370 72,103 Alphabet, Inc. -- Class A/(a)/........................ 2,280 1,773,863 Alphabet, Inc. -- Class C/(a)/........................ 2,371 1,799,304 CoStar Group, Inc./(a)/............................... 300 62,007 eBay, Inc./(a)/....................................... 9,380 257,762 Facebook, Inc. -- Class A/(a)/........................ 16,750 1,753,055 GoDaddy, Inc. -- Class A/(a)/......................... 150 4,809 IAC/InterActiveCorp................................... 490 29,425 LinkedIn Corp. -- Class A/(a)/........................ 920 207,074 Pandora Media, Inc./(a)/.............................. 1,624 21,778 Rackspace Hosting, Inc./(a)/.......................... 880 22,282 Twitter, Inc./(a)/.................................... 4,343 100,497 VeriSign, Inc./(a)/................................... 740 64,646 Yelp, Inc./(a)/....................................... 500 14,400 Zillow Group, Inc. -- Class A/ (a)/................... 200 5,208 Zillow Group, Inc. -- Class C/ (a)/................... 400 9,392 ---------- 6,197,605 ---------- IT SERVICES -- 6.1% Accenture PLC -- Class A.............................. 4,860 507,870 Alliance Data Systems Corp./(a)/...................... 530 146,582 Automatic Data Processing, Inc........................ 2,920 247,382 Black Knight Financial Services, Inc. -- Class A/(a)/. 100 3,306 Booz Allen Hamilton Holding Corp...................... 650 20,053 Broadridge Financial Solutions, Inc................... 880 47,282 Cognizant Technology Solutions Corp. -- Class A/(a)/.. 4,720 283,294 CoreLogic, Inc./United States/(a)/.................... 300 10,158 DST Systems, Inc...................................... 250 28,515 Fidelity National Information Services, Inc........... 880 53,328 First Data Corp. -- Class A/(a)/...................... 1,087 17,414 Fiserv, Inc./(a)/..................................... 1,870 171,030 FleetCor Technologies, Inc./(a)/...................... 744 106,340
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- IT SERVICES (CONTINUED) Gartner, Inc./(a)/...................... 600 $ 54,420 Genpact Ltd./(a)/....................... 1,180 29,476 Global Payments, Inc.................... 960 61,930 International Business Machines Corp.... 3,965 545,663 Jack Henry & Associates, Inc............ 650 50,739 Leidos Holdings, Inc.................... 50 2,813 MasterCard, Inc. -- Class A............. 7,750 754,540 Paychex, Inc............................ 2,130 112,656 PayPal Holdings, Inc./(a)/.............. 9,380 339,556 Sabre Corp.............................. 800 22,376 Square, Inc. -- Class A/(a)/............ 188 2,461 Teradata Corp./(a)/..................... 750 19,815 Total System Services, Inc.............. 1,250 62,250 Vantiv, Inc. -- Class A/(a)/............ 1,080 51,214 VeriFone Systems, Inc./(a)/............. 800 22,416 Visa, Inc. -- Class A................... 15,210 1,179,536 Western Union Co. (The) -- Class W...... 3,940 70,565 WEX, Inc./(a)/.......................... 300 26,520 ---------- 5,051,500 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0% Analog Devices, Inc..................... 2,150 118,938 Applied Materials, Inc.................. 5,600 104,552 Atmel Corp.............................. 3,200 27,552 Avago Technologies Ltd.................. 2,000 290,300 Broadcom Corp. -- Class A............... 300 17,346 Intel Corp.............................. 2,500 86,125 KLA-Tencor Corp......................... 1,200 83,220 Lam Research Corp....................... 900 71,478 Linear Technology Corp.................. 1,850 78,569 Maxim Integrated Products, Inc.......... 700 26,600 Microchip Technology, Inc............... 1,600 74,464 Micron Technology, Inc./(a)/............ 600 8,496 NXP Semiconductors NV/(a)/.............. 1 57 ON Semiconductor Corp./(a)/............. 3,050 29,890 Qorvo, Inc./(a)/........................ 1,100 55,990 Skyworks Solutions, Inc................. 1,450 111,403 SunEdison, Inc./(a)/.................... 1,850 9,417 SunPower Corp./(a)/..................... 50 1,501 Texas Instruments, Inc.................. 8,050 441,220 Xilinx, Inc............................. 450 21,137 ---------- 1,658,255 ---------- SOFTWARE -- 5.6% Adobe Systems, Inc./(a)/................ 3,840 360,730 ANSYS, Inc./(a)/........................ 130 12,025 Autodesk, Inc./(a)/..................... 1,270 77,381 Cadence Design Systems, Inc./(a)/....... 2,270 47,239 CDK Global, Inc......................... 1,190 56,489 Citrix Systems, Inc./(a)/............... 1,220 92,293 Electronic Arts, Inc./(a)/.............. 2,400 164,928 FireEye, Inc./(a)/...................... 1,017 21,093 Fortinet, Inc./(a)/..................... 1,030 32,105 Intuit, Inc............................. 2,170 209,405 King Digital Entertainment PLC.......... 550 9,834 Microsoft Corp./(b)/.................... 35,570 1,973,424 NetSuite, Inc./(a)/..................... 330 27,925 Oracle Corp............................. 14,735 538,270 PTC, Inc./(a)/.......................... 800 27,704 Red Hat, Inc./(a)/...................... 1,410 116,762
FSA-5 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- SOFTWARE (CONTINUED) salesforce.com, Inc./(a)/.................... 5,110 $ 400,624 ServiceNow, Inc./(a)/........................ 1,157 100,150 SolarWinds, Inc./(a)/........................ 410 24,149 Solera Holdings, Inc......................... 440 24,125 Splunk, Inc./(a)/............................ 930 54,693 SS&C Technologies Holdings, Inc.............. 500 34,135 Synopsys, Inc./(a)/.......................... 50 2,280 Tableau Software, Inc. -- Class A/(a)/....... 400 37,688 Ultimate Software Group, Inc. (The)/(a)/..... 250 48,877 VMware, Inc. -- Class A/(a)/................. 560 31,679 Workday, Inc. -- Class A/(a)/................ 760 60,557 ----------- 4,586,564 ----------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 5.8% 3D Systems Corp./(a)/........................ 300 2,607 Apple, Inc................................... 44,690 4,704,069 EMC Corp./MA................................. 1,180 30,302 NetApp, Inc.................................. 620 16,449 ----------- 4,753,427 ----------- Total Information Technology................. 22,948,921 ----------- CONSUMER DISCRETIONARY -- 21.3% AUTO COMPONENTS -- 0.5% BorgWarner, Inc.............................. 1,750 75,652 Delphi Automotive PLC........................ 2,200 188,606 Gentex Corp./MI.............................. 1,100 17,611 Johnson Controls, Inc........................ 1,050 41,465 Lear Corp.................................... 500 61,415 Visteon Corp./(a)/........................... 350 40,075 ----------- 424,824 ----------- AUTOMOBILES -- 0.3% Harley-Davidson, Inc......................... 800 36,312 Tesla Motors, Inc./(a)/...................... 820 196,808 Thor Industries, Inc......................... 350 19,653 ----------- 252,773 ----------- DISTRIBUTORS -- 0.2% Genuine Parts Co............................. 1,050 90,184 LKQ Corp./(a)/............................... 2,360 69,927 ----------- 160,111 ----------- DIVERSIFIED CONSUMER SERVICES -- 0.2% H&R Block, Inc............................... 1,900 63,289 Service Corp. International/US............... 1,550 40,331 ServiceMaster Global Holdings, Inc./(a)/..... 741 29,077 ----------- 132,697 ----------- HOTELS, RESTAURANTS & LEISURE -- 3.4% Aramark...................................... 1,324 42,699 Brinker International, Inc................... 400 19,180 Chipotle Mexican Grill, Inc. -- Class A/(a)/. 300 143,955 Choice Hotels International, Inc............. 250 12,603 Darden Restaurants, Inc...................... 100 6,364 Domino's Pizza, Inc.......................... 450 50,063 Dunkin' Brands Group, Inc.................... 746 31,772 Extended Stay America, Inc................... 450 7,155 Hilton Worldwide Holdings, Inc............... 3,974 85,044 International Game Technology PLC............ 400 6,472 Las Vegas Sands Corp......................... 2,800 122,752
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (CONTINUED) Marriott International, Inc./MD -- Class A........... 1,628 $ 109,141 McDonald's Corp...................................... 7,400 874,236 MGM Resorts International/(a)/....................... 150 3,408 Norwegian Cruise Line Holdings Ltd./(a)/............. 890 52,154 Panera Bread Co. -- Class A/(a)/..................... 200 38,956 Six Flags Entertainment Corp......................... 480 26,371 Starbucks Corp....................................... 11,550 693,346 Starwood Hotels & Resorts Worldwide, Inc............. 1,300 90,064 Wyndham Worldwide Corp............................... 900 65,385 Wynn Resorts Ltd..................................... 500 34,595 Yum! Brands, Inc..................................... 3,350 244,717 ---------- 2,760,432 ---------- HOUSEHOLD DURABLES -- 0.6% DR Horton, Inc....................................... 1,000 32,030 GoPro, Inc. -- Class A/(a)/.......................... 616 11,094 Harman International Industries, Inc................. 500 47,105 Jarden Corp./(a)/.................................... 1,625 92,820 Leggett & Platt, Inc................................. 1,000 42,020 Lennar Corp. -- Class A.............................. 450 22,010 Lennar Corp. -- Class B.............................. 50 2,009 Mohawk Industries, Inc./(a)/......................... 350 66,286 Newell Rubbermaid, Inc............................... 1,000 44,080 NVR, Inc./(a)/....................................... 50 82,150 Tempur Sealy International, Inc./(a)/................ 400 28,184 Toll Brothers, Inc./(a)/............................. 400 13,320 TopBuild Corp./(a)/.................................. 272 8,369 Tupperware Brands Corp............................... 350 19,478 Whirlpool Corp....................................... 50 7,344 ---------- 518,299 ---------- INTERNET & CATALOG RETAIL -- 4.0% Amazon.com, Inc./(a)/................................ 3,040 2,054,706 Expedia, Inc......................................... 851 105,805 Groupon, Inc./(a)/................................... 3,840 11,789 Liberty Interactive Corp. QVC Group -- Class A/(a)/.. 1,690 46,171 Liberty Ventures -- Series A/(a)/.................... 1,035 46,689 Netflix, Inc./(a)/................................... 3,293 376,653 Priceline Group, Inc. (The)/(a)/..................... 433 552,053 TripAdvisor, Inc./(a)/............................... 820 69,905 ---------- 3,263,771 ---------- LEISURE PRODUCTS -- 0.1% Brunswick Corp./DE................................... 450 22,729 Hasbro, Inc.......................................... 650 43,784 Polaris Industries, Inc.............................. 550 47,272 Vista Outdoor, Inc./(a)/............................. 50 2,226 ---------- 116,011 ---------- MEDIA -- 5.2% AMC Networks, Inc. -- Class A/(a)/................... 400 29,872 Cablevision Systems Corp. -- Class A................. 200 6,380 CBS Corp. -- Class B................................. 3,750 176,737 Charter Communications, Inc. -- Class A/(a)/......... 650 119,015 Cinemark Holdings, Inc............................... 850 28,415 Clear Channel Outdoor Holdings, Inc. -- Class A/(a)/. 100 559 Comcast Corp. -- Class A............................. 17,500 987,525 Discovery Communications, Inc. -- Class A/(a)/....... 1,050 28,014 Discovery Communications, Inc. -- Class C/(a)/....... 1,850 46,657 DISH Network Corp. -- Class A/(a)/................... 1,100 62,898 Interpublic Group of Cos., Inc. (The)................ 3,200 74,496
FSA-6 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------- MEDIA (CONTINUED) Lions Gate Entertainment Corp................... 650 $ 21,054 Live Nation Entertainment, Inc./(a)/............ 1,100 27,027 Madison Square Garden Co. (The) -- Class A/(a)/. 166 26,859 Morningstar, Inc................................ 150 12,062 MSG Networks, Inc./(a)/......................... 400 8,320 Omnicom Group, Inc.............................. 1,900 143,754 Regal Entertainment Group -- Class A............ 550 10,379 Scripps Networks Interactive, Inc. -- Class A... 650 35,886 Sirius XM Holdings, Inc./(a)/................... 17,800 72,446 Starz -- Class A/(a)/........................... 600 20,100 Time Warner Cable, Inc. -- Class A.............. 2,250 417,577 Time Warner, Inc................................ 3,300 213,411 Twenty-First Century Fox, Inc. -- Class A....... 6,210 168,664 Twenty-First Century Fox, Inc. -- Class B....... 2,450 66,713 Viacom, Inc. -- Class A......................... 50 2,200 Viacom, Inc. -- Class B......................... 2,625 108,045 Walt Disney Co. (The)........................... 13,200 1,387,056 ---------- 4,302,121 ---------- MULTILINE RETAIL -- 0.6% Dillard's, Inc. -- Class A...................... 30 1,971 Dollar General Corp............................. 2,370 170,332 Dollar Tree, Inc./(a)/.......................... 1,806 139,459 Macy's, Inc..................................... 1,890 66,112 Nordstrom, Inc.................................. 1,050 52,301 Sears Holdings Corp./(a)/....................... 20 411 Target Corp..................................... 428 31,077 ---------- 461,663 ---------- SPECIALTY RETAIL -- 4.7% Aaron's, Inc.................................... 45 1,008 Advance Auto Parts, Inc......................... 610 91,811 AutoNation, Inc./(a)/........................... 480 28,637 AutoZone, Inc./(a)/............................. 290 215,154 Bed Bath & Beyond, Inc./(a)/.................... 1,310 63,207 Cabela's, Inc./(a)/............................. 50 2,337 CarMax, Inc./(a)/............................... 1,600 86,352 CST Brands, Inc................................. 420 16,439 Dick's Sporting Goods, Inc...................... 490 17,321 DSW, Inc. -- Class A............................ 50 1,193 Foot Locker, Inc................................ 880 57,279 Gap, Inc. (The)................................. 1,820 44,954 GNC Holdings, Inc. -- Class A................... 600 18,612 Home Depot, Inc. (The).......................... 10,120 1,338,370 L Brands, Inc................................... 1,930 184,933 Lowe's Cos., Inc................................ 7,314 556,157 Michaels Cos., Inc. (The)/(a)/.................. 394 8,711 Murphy USA, Inc./(a)/........................... 20 1,215 O'Reilly Automotive, Inc./(a)/.................. 830 210,339 Office Depot, Inc./(a)/......................... 750 4,230 Penske Automotive Group, Inc.................... 90 3,811 Ross Stores, Inc................................ 3,190 171,654 Sally Beauty Holdings, Inc./(a)/................ 1,180 32,910 Signet Jewelers Ltd............................. 660 81,635 Tiffany & Co.................................... 680 51,877 TJX Cos., Inc. (The)............................ 5,220 370,150 Tractor Supply Co............................... 1,000 85,500 Ulta Salon Cosmetics & Fragrance, Inc./(a)/..... 540 99,900 Urban Outfitters, Inc./(a)/..................... 640 14,560 Williams-Sonoma, Inc............................ 630 36,798 ---------- 3,897,054 ----------
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.5% Carter's, Inc............................ 350 $ 31,160 Coach, Inc............................... 300 9,819 Fossil Group, Inc./(a)/.................. 250 9,140 Hanesbrands, Inc......................... 3,100 91,233 Kate Spade & Co./(a)/.................... 950 16,882 lululemon athletica, Inc./(a)/........... 800 41,976 Michael Kors Holdings Ltd./(a)/.......... 1,500 60,090 NIKE, Inc. -- Class B.................... 10,600 662,500 Ralph Lauren Corp........................ 50 5,574 Skechers U.S.A., Inc. -- Class A/(a)/.... 950 28,700 Under Armour, Inc. -- Class A/(a)/....... 1,350 108,823 VF Corp.................................. 2,600 161,850 ----------- 1,227,747 ----------- Total Consumer Discretionary............. 17,517,503 ----------- HEALTH CARE -- 17.0% BIOTECHNOLOGY -- 7.1% AbbVie, Inc.............................. 12,809 758,805 Agios Pharmaceuticals, Inc./(a)/......... 200 12,984 Alexion Pharmaceuticals, Inc./(a)/....... 1,700 324,275 Alkermes PLC/(a)/........................ 900 71,442 Alnylam Pharmaceuticals, Inc./(a)/....... 500 47,070 Amgen, Inc............................... 5,900 957,747 Baxalta, Inc............................. 2,600 101,478 Biogen, Inc./(a)/........................ 1,749 535,806 BioMarin Pharmaceutical, Inc./(a)/....... 1,200 125,712 Bluebird Bio, Inc./(a)/.................. 200 12,844 Celgene Corp./(a)/....................... 6,126 733,650 Gilead Sciences, Inc..................... 11,416 1,155,185 Incyte Corp./(a)/........................ 1,200 130,140 Intercept Pharmaceuticals, Inc./(a)/..... 150 22,403 Intrexon Corp./(a)/...................... 350 10,553 Ionis Pharmaceuticals, Inc./(a)/......... 850 52,640 Juno Therapeutics, Inc./(a)/............. 77 3,386 Medivation, Inc./(a)/.................... 1,150 55,591 OPKO Health, Inc./(a)/................... 2,250 22,612 Puma Biotechnology, Inc./(a)/............ 200 15,680 Regeneron Pharmaceuticals, Inc./(a)/..... 650 352,865 Seattle Genetics, Inc./(a)/.............. 750 33,660 United Therapeutics Corp./(a)/........... 400 62,644 Vertex Pharmaceuticals, Inc./(a)/........ 1,900 239,077 ----------- 5,838,249 ----------- HEALTH CARE EQUIPMENT & SUPPLIES -- 1.7% Alere, Inc./(a)/......................... 350 13,682 Align Technology, Inc./(a)/.............. 550 36,218 Baxter International, Inc................ 2,600 99,190 Becton Dickinson and Co.................. 1,650 254,248 Boston Scientific Corp./(a)/............. 750 13,830 Cooper Cos., Inc. (The).................. 300 40,260 CR Bard, Inc............................. 600 113,664 DENTSPLY International, Inc.............. 200 12,170 DexCom, Inc./(a)/........................ 550 45,045 Edwards Lifesciences Corp./(a)/.......... 1,600 126,368 Hill-Rom Holdings, Inc................... 400 19,224 Hologic, Inc./(a)/....................... 1,900 73,511 IDEXX Laboratories, Inc./(a)/............ 650 47,398 Intuitive Surgical, Inc./(a)/............ 300 163,848 ResMed, Inc.............................. 1,050 56,374 Sirona Dental Systems, Inc./(a)/......... 450 49,307
FSA-7 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ HEALTH CARE EQUIPMENT & SUPPLIES (CONTINUED) St Jude Medical, Inc................................ 1,200 $ 74,124 Stryker Corp........................................ 1,300 120,822 Varian Medical Systems, Inc./(a)/................... 800 64,640 Zimmer Biomet Holdings, Inc......................... 100 10,259 ---------- 1,434,182 ---------- HEALTH CARE PROVIDERS & SERVICES -- 3.6% Acadia Healthcare Co., Inc./(a)/.................... 400 24,984 Aetna, Inc.......................................... 700 75,684 AmerisourceBergen Corp. -- Class A.................. 1,700 176,307 Anthem, Inc......................................... 450 62,748 Brookdale Senior Living, Inc./(a)/.................. 300 5,538 Cardinal Health, Inc................................ 2,350 209,784 Centene Corp./(a)/.................................. 850 55,938 Cigna Corp.......................................... 2,050 299,976 DaVita HealthCare Partners, Inc./(a)/............... 400 27,884 Envision Healthcare Holdings, Inc./(a)/............. 1,403 36,436 Express Scripts Holding Co./(a)/.................... 4,370 381,982 HCA Holdings, Inc./(a)/............................. 200 13,526 Health Net, Inc./CA/(a)/............................ 100 6,846 Henry Schein, Inc./(a)/............................. 700 110,733 Humana, Inc......................................... 1,050 187,435 Laboratory Corp. of America Holdings/(a)/........... 270 33,383 LifePoint Health, Inc./(a)/......................... 50 3,670 McKesson Corp....................................... 1,800 355,014 MEDNAX Inc/(a)/..................................... 350 25,081 Patterson Cos., Inc................................. 350 15,824 Premier, Inc. -- Class A/(a)/....................... 289 10,193 Tenet Healthcare Corp./(a)/......................... 712 21,574 UnitedHealth Group, Inc............................. 7,050 829,362 Universal Health Services, Inc. -- Class B.......... 150 17,924 VCA, Inc./(a)/...................................... 600 33,000 ---------- 3,020,826 ---------- HEALTH CARE TECHNOLOGY -- 0.3% Allscripts Healthcare Solutions, Inc./(a)/.......... 350 5,383 athenahealth, Inc./(a)/............................. 350 56,340 Cerner Corp./(a)/................................... 2,250 135,382 IMS Health Holdings, Inc./(a)/...................... 1,000 25,470 Inovalon Holdings, Inc. -- Class A/(a)/............. 164 2,788 Veeva Systems, Inc. -- Class A/(a)/................. 538 15,521 ---------- 240,884 ---------- LIFE SCIENCES TOOLS & SERVICES -- 0.8% Bio-Techne Corp..................................... 150 13,500 Bruker Corp./(a)/................................... 800 19,416 Charles River Laboratories International, Inc./(a)/. 300 24,117 Illumina, Inc./(a)/................................. 1,100 211,139 Mettler-Toledo International, Inc./(a)/............. 250 84,783 PerkinElmer, Inc.................................... 100 5,357 Quintiles Transnational Holdings, Inc./(a)/......... 500 34,330 Thermo Fisher Scientific, Inc....................... 1,100 156,035 VWR Corp./(a)/...................................... 85 2,406 Waters Corp./(a)/................................... 600 80,748 ---------- 631,831 ---------- PHARMACEUTICALS -- 3.5% Akorn, Inc./ (a)/................................... 600 22,386 Allergan PLC/(a)/................................... 1,372 428,750 Bristol-Myers Squibb Co............................. 12,950 890,831 Eli Lilly & Co...................................... 7,550 636,163
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------- PHARMACEUTICALS (CONTINUED) Endo International PLC/(a)/........... 600 $ 36,732 Jazz Pharmaceuticals PLC/(a)/......... 500 70,280 Johnson & Johnson..................... 2,750 282,480 Mallinckrodt PLC/(a)/................. 343 25,598 Merck & Co., Inc...................... 2,450 129,409 Mylan NV/(a)/......................... 2,747 148,530 Perrigo Co. PLC....................... 236 34,149 Zoetis, Inc........................... 3,780 181,138 ----------- 2,886,446 ----------- Total Health Care..................... 14,052,418 ----------- CONSUMER STAPLES -- 11.2% BEVERAGES -- 3.8% Brown-Forman Corp. -- Class A......... 200 22,022 Brown-Forman Corp. -- Class B......... 875 86,870 Coca-Cola Co. (The)................... 30,400 1,305,984 Coca-Cola Enterprises, Inc............ 1,800 88,632 Constellation Brands, Inc. -- Class A. 1,250 178,050 Dr Pepper Snapple Group, Inc.......... 1,500 139,800 Monster Beverage Corp./(a)/........... 1,150 171,304 PepsiCo, Inc.......................... 11,487 1,147,781 ----------- 3,140,443 ----------- FOOD & STAPLES RETAILING -- 2.4% Costco Wholesale Corp................. 3,450 557,175 CVS Health Corp....................... 8,100 791,937 Kroger Co. (The)...................... 7,550 315,817 Rite Aid Corp./(a)/................... 4,500 35,280 Sprouts Farmers Market, Inc./(a)/..... 1,136 30,206 Sysco Corp............................ 1,400 57,400 Walgreens Boots Alliance, Inc......... 950 80,897 Whole Foods Market, Inc............... 2,500 83,750 ----------- 1,952,462 ----------- FOOD PRODUCTS -- 1.7% Blue Buffalo Pet Products, Inc./(a)/.. 160 2,994 Campbell Soup Co...................... 700 36,785 ConAgra Foods, Inc.................... 450 18,972 Flowers Foods, Inc.................... 1,150 24,714 General Mills, Inc.................... 4,600 265,236 Hain Celestial Group, Inc. (The)/(a)/. 750 30,292 Hershey Co. (The)..................... 1,100 98,197 Hormel Foods Corp..................... 1,000 79,080 Ingredion, Inc........................ 50 4,792 Kellogg Co............................ 1,750 126,472 Keurig Green Mountain, Inc............ 950 85,481 Kraft Heinz Co. (The)................. 4,566 332,222 McCormick & Co., Inc./MD.............. 950 81,282 Mead Johnson Nutrition Co. -- Class A. 1,550 122,372 Pilgrim's Pride Corp.................. 50 1,105 Tyson Foods, Inc. -- Class A.......... 100 5,333 WhiteWave Foods Co. (The)/(a)/........ 1,298 50,505 ----------- 1,365,834 ----------- HOUSEHOLD PRODUCTS -- 1.1% Church & Dwight Co., Inc.............. 1,000 84,880 Clorox Co. (The)...................... 850 107,806 Colgate-Palmolive Co.................. 6,150 409,713 Kimberly-Clark Corp................... 2,200 280,060 Spectrum Brands Holdings, Inc......... 200 20,360 ----------- 902,819 -----------
FSA-8 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------------- PERSONAL PRODUCTS -- 0.2% Coty, Inc. -- Class A............................. 554 $ 14,199 Estee Lauder Cos., Inc. (The) -- Class A.......... 1,650 145,299 Herbalife Ltd./(a)/............................... 400 21,448 Nu Skin Enterprises, Inc. -- Class A.............. 100 3,789 ---------- 184,735 ---------- TOBACCO -- 2.0% Altria Group, Inc................................. 14,350 835,314 Philip Morris International, Inc.................. 5,977 525,438 Reynolds American, Inc............................ 6,394 295,083 ---------- 1,655,835 ---------- Total Consumer Staples............................ 9,202,128 ---------- INDUSTRIALS -- 10.7% AEROSPACE & DEFENSE -- 2.9% B/E Aerospace, Inc................................ 750 31,778 Boeing Co. (The).................................. 5,390 779,340 General Dynamics Corp............................. 750 103,020 Hexcel Corp....................................... 650 30,193 Honeywell International, Inc...................... 6,050 626,598 Huntington Ingalls Industries, Inc................ 400 50,740 Lockheed Martin Corp.............................. 1,500 325,725 Northrop Grumman Corp............................. 500 94,405 Precision Castparts Corp.......................... 250 58,003 Rockwell Collins, Inc............................. 1,000 92,300 Spirit AeroSystems Holdings, Inc. -- Class A/(a)/. 950 47,567 Textron, Inc...................................... 400 16,804 TransDigm Group, Inc./(a)/........................ 450 102,802 United Technologies Corp.......................... 650 62,445 ---------- 2,421,720 ---------- AIR FREIGHT & LOGISTICS -- 1.0% CH Robinson Worldwide, Inc........................ 1,100 68,222 Expeditors International of Washington, Inc....... 1,450 65,395 FedEx Corp........................................ 850 126,641 United Parcel Service, Inc. -- Class B............ 5,400 519,642 ---------- 779,900 ---------- AIRLINES -- 1.3% Alaska Air Group, Inc............................. 950 76,484 American Airlines Group, Inc...................... 5,304 224,624 Delta Air Lines, Inc.............................. 6,300 319,347 JetBlue Airways Corp./(a)/........................ 850 19,253 Southwest Airlines Co............................. 5,100 219,606 Spirit Airlines, Inc./(a)/........................ 500 19,925 United Continental Holdings, Inc./(a)/............ 2,927 167,717 ---------- 1,046,956 ---------- BUILDING PRODUCTS -- 0.3% Allegion PLC...................................... 750 49,440 AO Smith Corp..................................... 600 45,966 Armstrong World Industries, Inc./(a)/............. 100 4,573 Fortune Brands Home & Security, Inc............... 350 19,425 Lennox International, Inc......................... 350 43,715 Masco Corp........................................ 2,650 74,995 USG Corp./(a)/.................................... 650 15,789 ---------- 253,903 ---------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% Cintas Corp....................................... 700 63,735 Clean Harbors, Inc./(a)/.......................... 300 12,495
COMPANY SHARES U.S. $ VALUE --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES (CONTINUED) Copart, Inc./(a)/.......................... 900 $ 34,209 Covanta Holding Corp....................... 800 12,392 KAR Auction Services, Inc.................. 350 12,960 Pitney Bowes, Inc.......................... 600 12,390 Rollins, Inc............................... 650 16,835 RR Donnelley & Sons Co..................... 800 11,776 Stericycle, Inc./(a)/...................... 700 84,420 Tyco International PLC/(a)/................ 2,800 89,292 Waste Management, Inc...................... 200 10,674 ---------- 361,178 ---------- CONSTRUCTION & ENGINEERING -- 0.0% AECOM/(a)/................................. 150 4,505 Quanta Services, Inc./(a)/................. 300 6,075 ---------- 10,580 ---------- ELECTRICAL EQUIPMENT -- 0.6% Acuity Brands, Inc......................... 350 81,830 AMETEK, Inc................................ 1,790 95,926 Babcock & Wilcox Enterprises, Inc./(a)/.... 50 1,044 BWX Technologies, Inc...................... 150 4,766 Emerson Electric Co........................ 3,550 169,796 Hubbell, Inc............................... 50 5,052 Regal Beloit Corp.......................... 50 2,926 Rockwell Automation, Inc................... 1,000 102,610 SolarCity Corp./(a)/....................... 450 22,959 ---------- 486,909 ---------- INDUSTRIAL CONGLOMERATES -- 1.1% 3M Co...................................... 4,958 746,873 Carlisle Cos., Inc......................... 100 8,869 Danaher Corp............................... 930 86,378 Roper Technologies, Inc.................... 350 66,427 ---------- 908,547 ---------- MACHINERY -- 1.2% Allison Transmission Holdings, Inc......... 700 18,123 Caterpillar, Inc........................... 750 50,970 Cummins, Inc............................... 1,000 88,010 Deere & Co................................. 400 30,508 Donaldson Co., Inc......................... 900 25,794 Flowserve Corp............................. 400 16,832 Graco, Inc................................. 450 32,431 IDEX Corp.................................. 500 38,305 Illinois Tool Works, Inc................... 2,350 217,798 Ingersoll-Rand PLC......................... 50 2,765 Lincoln Electric Holdings, Inc............. 450 23,351 Middleby Corp. (The)/(a)/.................. 400 43,148 Nordson Corp............................... 400 25,660 PACCAR, Inc................................ 2,400 113,760 Parker-Hannifin Corp....................... 500 48,490 Snap-on, Inc............................... 500 85,715 Stanley Black & Decker, Inc................ 100 10,673 Toro Co. (The)............................. 450 32,881 Valmont Industries, Inc.................... 50 5,301 WABCO Holdings, Inc./(a)/.................. 450 46,017 Wabtec Corp./DE............................ 700 49,784 ---------- 1,006,316 ---------- PROFESSIONAL SERVICES -- 0.5% Dun & Bradstreet Corp. (The)............... 100 10,393 Equifax, Inc............................... 900 100,233
FSA-9 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------------- PROFESSIONAL SERVICES (CONTINUED) IHS, Inc. -- Class A/(a)/.......................... 500 $ 59,215 Nielsen Holdings PLC............................... 1,953 91,010 Robert Half International, Inc..................... 1,000 47,140 Towers Watson & Co. -- Class A..................... 100 12,846 TransUnion/(a)/.................................... 160 4,411 Verisk Analytics, Inc. -- Class A/(a)/............. 1,307 100,482 ---------- 425,730 ---------- ROAD & RAIL -- 0.9% AMERCO............................................. 50 19,475 Avis Budget Group, Inc./(a)/....................... 750 27,217 CSX Corp........................................... 1,900 49,305 Genesee & Wyoming, Inc. -- Class A/(a)/............ 150 8,054 Hertz Global Holdings, Inc./(a)/................... 3,100 44,113 JB Hunt Transport Services, Inc.................... 650 47,684 Landstar System, Inc............................... 250 14,663 Old Dominion Freight Line, Inc./(a)/............... 450 26,581 Union Pacific Corp................................. 6,800 531,760 ---------- 768,852 ---------- TRADING COMPANIES & DISTRIBUTORS -- 0.4% Air Lease Corp..................................... 50 1,674 Fastenal Co........................................ 2,200 89,804 HD Supply Holdings, Inc./(a)/...................... 1,278 38,378 MSC Industrial Direct Co., Inc. -- Class A......... 100 5,627 United Rentals, Inc./(a)/.......................... 700 50,778 Watsco, Inc........................................ 200 23,426 WW Grainger, Inc................................... 550 111,425 ---------- 321,112 ---------- Total Industrials.................................. 8,791,703 ---------- FINANCIALS -- 5.5% BANKS -- 0.1% Signature Bank/New York NY/(a)/.................... 400 61,348 SVB Financial Group/(a)/........................... 250 29,725 ---------- 91,073 ---------- CAPITAL MARKETS -- 1.2% Affiliated Managers Group, Inc./(a)/............... 450 71,892 Ameriprise Financial, Inc.......................... 1,150 122,383 Artisan Partners Asset Management, Inc. -- Class A. 250 9,015 Bank of New York Mellon Corp. (The)................ 850 35,037 BlackRock, Inc. -- Class A......................... 360 122,587 Charles Schwab Corp. (The)......................... 6,250 205,812 Eaton Vance Corp................................... 850 27,565 Federated Investors, Inc. -- Class B............... 650 18,623 Interactive Brokers Group, Inc. -- Class A......... 50 2,180 Invesco Ltd........................................ 400 13,392 Lazard Ltd. -- Class A............................. 900 40,509 Legg Mason, Inc.................................... 150 5,885 LPL Financial Holdings, Inc........................ 544 23,202 NorthStar Asset Management Group, Inc./New York.... 1,497 18,174 SEI Investments Co................................. 1,000 52,400 T Rowe Price Group, Inc............................ 1,950 139,405 TD Ameritrade Holding Corp......................... 1,750 60,742 Waddell & Reed Financial, Inc. -- Class A.......... 550 15,763 ---------- 984,566 ---------- CONSUMER FINANCE -- 0.2% Ally Financial, Inc./(a)/.......................... 250 4,660 American Express Co................................ 1,287 89,511
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- CONSUMER FINANCE (CONTINUED) Credit Acceptance Corp./(a)/................. 100 $ 21,402 LendingClub Corp./(a)/....................... 508 5,613 Santander Consumer USA Holdings, Inc./(a)/... 7 111 SLM Corp./(a)/............................... 3,000 19,560 ---------- 140,857 ---------- DIVERSIFIED FINANCIAL SERVICES -- 0.9% Berkshire Hathaway, Inc. -- Class B/(a)/..... 900 118,836 CBOE Holdings, Inc........................... 660 42,834 FactSet Research Systems, Inc................ 360 58,525 Intercontinental Exchange, Inc............... 350 89,691 Leucadia National Corp....................... 250 4,348 McGraw Hill Financial, Inc................... 2,150 211,947 Moody's Corp................................. 1,350 135,459 MSCI, Inc. -- Class A........................ 800 57,704 ---------- 719,344 ---------- INSURANCE -- 0.5% AmTrust Financial Services, Inc.............. 50 3,079 Aon PLC...................................... 2,200 202,862 Arthur J Gallagher & Co...................... 650 26,611 Erie Indemnity Co. -- Class A................ 200 19,128 Markel Corp./(a)/............................ 58 51,234 Marsh & McLennan Cos., Inc................... 2,450 135,853 ---------- 438,767 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) -- 2.4% American Tower Corp.......................... 3,290 318,965 Boston Properties, Inc....................... 1,050 133,917 Columbia Property Trust, Inc................. 100 2,348 Crown Castle International Corp.............. 2,623 226,758 Digital Realty Trust, Inc.................... 550 41,591 Empire State Realty Trust, Inc. -- Class A... 400 7,228 Equinix, Inc................................. 494 149,386 Equity LifeStyle Properties, Inc............. 600 40,002 Extra Space Storage, Inc..................... 930 82,035 Federal Realty Investment Trust.............. 550 80,355 Four Corners Property Trust, Inc./(a)/....... 66 1,595 Gaming and Leisure Properties, Inc........... 50 1,390 Healthcare Trust of America, Inc. -- Class A. 100 2,697 Iron Mountain, Inc........................... 570 15,396 Lamar Advertising Co. -- Class A............. 550 32,989 Omega Healthcare Investors, Inc.............. 300 10,494 Plum Creek Timber Co., Inc................... 470 22,428 Post Properties, Inc......................... 50 2,958 Public Storage............................... 1,020 252,654 Simon Property Group, Inc.................... 2,389 464,517 Tanger Factory Outlet Centers, Inc........... 670 21,909 Taubman Centers, Inc......................... 200 15,344 Welltower, Inc............................... 1,200 81,636 Weyerhaeuser Co.............................. 250 7,495 ---------- 2,016,087 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.2% CBRE Group, Inc. -- Class A/(a)/............. 2,120 73,310 Howard Hughes Corp. (The)/(a)/............... 150 16,974 Jones Lang LaSalle, Inc...................... 300 47,958 Realogy Holdings Corp./(a)/.................. 400 14,668 ---------- 152,910 ---------- Total Financials............................. 4,543,604 ----------
FSA-10 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- MATERIALS -- 3.5% CHEMICALS -- 2.9% Air Products & Chemicals, Inc............ 1,350 $ 175,648 Airgas, Inc.............................. 100 13,832 Ashland, Inc............................. 50 5,135 Axalta Coating Systems Ltd./(a)/......... 687 18,309 Celanese Corp. -- Series A............... 100 6,733 CF Industries Holdings, Inc.............. 1,800 73,458 Chemours Co. (The)....................... 560 3,002 Dow Chemical Co. (The)................... 1,100 56,628 Eastman Chemical Co...................... 206 13,907 Ecolab, Inc.............................. 2,006 229,446 EI du Pont de Nemours & Co............... 3,250 216,450 FMC Corp................................. 750 29,347 Huntsman Corp............................ 950 10,802 International Flavors & Fragrances, Inc.. 650 77,766 LyondellBasell Industries NV -- Class A.. 2,950 256,355 Monsanto Co.............................. 3,623 356,938 NewMarket Corp........................... 100 38,073 Platform Specialty Products Corp./(a)/... 150 1,925 PPG Industries, Inc...................... 2,150 212,463 Praxair, Inc............................. 1,900 194,560 RPM International, Inc................... 950 41,857 Scotts Miracle-Gro Co. (The) -- Class A.. 300 19,353 Sherwin-Williams Co. (The)............... 700 181,720 Valspar Corp. (The)...................... 650 53,917 WR Grace & Co./(a)/...................... 600 59,754 ---------- 2,347,378 ---------- CONSTRUCTION MATERIALS -- 0.1% Eagle Materials, Inc..................... 300 18,129 Martin Marietta Materials, Inc........... 100 13,658 Vulcan Materials Co...................... 150 14,246 ---------- 46,033 ---------- CONTAINERS & PACKAGING -- 0.4% AptarGroup, Inc.......................... 100 7,265 Avery Dennison Corp...................... 600 37,596 Ball Corp................................ 1,050 76,366 Bemis Co., Inc........................... 50 2,235 Crown Holdings, Inc./(a)/................ 400 20,280 Graphic Packaging Holding Co............. 1,450 18,603 Owens-Illinois, Inc./(a)/................ 50 871 Packaging Corp. of America............... 700 44,135 Sealed Air Corp.......................... 1,600 71,360 Silgan Holdings, Inc..................... 300 16,116 WestRock Co.............................. 100 4,562 ---------- 299,389 ---------- METALS & MINING -- 0.0% Compass Minerals International, Inc...... 250 18,817 Royal Gold, Inc.......................... 50 1,824 Southern Copper Corp..................... 268 7,000 Steel Dynamics, Inc...................... 200 3,574 Tahoe Resources, Inc..................... 150 1,301 ---------- 32,516 ---------- PAPER & FOREST PRODUCTS -- 0.1% International Paper Co................... 3,050 114,985 ---------- Total Materials.......................... 2,840,301 ----------
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 2.0% DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.9% AT&T, Inc................................... 6,939 $ 238,771 Level 3 Communications, Inc./(a)/........... 177 9,622 Verizon Communications, Inc................. 29,300 1,354,246 Zayo Group Holdings, Inc./(a)/.............. 875 23,266 ----------- 1,625,905 ----------- WIRELESS TELECOMMUNICATION SERVICES -- 0.1% SBA Communications Corp. -- Class A/(a)/.... 450 47,282 ----------- Total Telecommunication Services............ 1,673,187 ----------- ENERGY -- 0.5% ENERGY EQUIPMENT & SERVICES -- 0.1% FMC Technologies, Inc./(a)/................. 1,100 31,911 Oceaneering International, Inc.............. 100 3,752 RPC, Inc.................................... 50 597 Schlumberger Ltd............................ 1,140 79,515 ----------- 115,775 ----------- OIL, GAS & CONSUMABLE FUELS -- 0.4% Cabot Oil & Gas Corp........................ 3,200 56,608 Continental Resources, Inc./OK/(a)/......... 200 4,596 CVR Energy, Inc............................. 50 1,967 EOG Resources, Inc.......................... 300 21,237 Fitbit, Inc./(a)/........................... 186 5,504 HollyFrontier Corp.......................... 200 7,978 Marathon Petroleum Corp..................... 300 15,552 Memorial Resource Development Corp./(a)/.... 638 10,304 ONEOK, Inc.................................. 650 16,029 Range Resources Corp........................ 50 1,231 Targa Resources Corp........................ 200 5,412 Teekay Corp................................. 100 987 Tesoro Corp................................. 50 5,268 Williams Cos., Inc. (The)................... 5,747 147,698 World Fuel Services Corp.................... 100 3,846 ----------- 304,217 ----------- Total Energy................................ 419,992 ----------- UTILITIES -- 0.0% ELECTRIC UTILITIES -- 0.0% ITC Holdings Corp........................... 350 13,737 ----------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.0% Calpine Corp./(a)/.......................... 250 3,618 TerraForm Power, Inc. -- Class A/(a)/....... 50 629 ----------- 4,247 ----------- MULTI-UTILITIES -- 0.0% Dominion Resources, Inc./VA................. 150 10,146 ----------- Total Utilities............................. 28,130 ----------- TOTAL INVESTMENTS -- 99.5% (cost $51,075,617)......................... 82,017,887 Other assets less liabilities -- 0.5%....... 452,607 ----------- NET ASSETS -- 100.0% $82,470,494 ===========
FSA-11 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015 FUTURES CONTRACTS
NUMBER OF EXPIRATION ORIGINAL VALUE AT UNREALIZED TYPE CONTRACTS MONTH VALUE DECEMBER 31, 2015 (DEPRECIATION) ---- --------- ---------- -------- ----------------- -------------- PURCHASED CONTRACTS S&P 500 Index Mini.. 3 March 2016 $306,418 $305,310 $(1,108)
----------- (a)Non-income producing security. (b)Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. Glossary: CBOE -- Chicago Board Options Exchange MSCI -- Morgan Stanley Capital International REIT -- Real Estate Investment Trust The accompanying notes are an integral part of these financial statements. FSA-12 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 99.4% United States 0.4% Singapore 0.2% United Kingdom ---- 100.0% ====== ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of long-term investments and may vary over time. The accompanying notes are an integral part of these financial statements FSA-13 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 1. Organization Separate Account No. 4 (Pooled) (the "Fund" or "Account") of AXA Equitable Life Insurance Company ("AXA Equitable"), was established under New York State Insurance Law. Pursuant to such law, to the extent provided in the applicable contracts, the net assets in the Fund are not chargeable with liabilities arising out of any other business of AXA Equitable. The Fund is an investment company and, accordingly follows the investment company accounting 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"). These financial statements reflect the financial position and results of operations of Separate Account No. 4. Annuity contracts issued by AXA Equitable for which the Account is the funding vehicle are Equi-Pen-Plus ("EPP"), Members Retirement Program ("MRP") and Retirement Investment Account ("RIA") (collectively, the "Plans"). Institutional Contracts reflect investments in the Fund by Contractowners of group annuity contracts issued by AXA Equitable. Assets of the Plans and Institutional are invested in a number of investment Funds (available Funds vary by Plan). The Contractowners invest in Separate Account No. 4 under the following respective names: POOLED SEPARATE ACCOUNT FUNDS* RIA Separate Account No. 4 The AllianceBernstein Common Stock Fund MRP Separate Account No. 4 The AllianceBernstein Growth Equity Fund EPP Separate Account No. 4 The AllianceBernstein Common Stock Fund INSTITUTIONAL Separate Account No. 4 Growth Stock Account
---------- * As defined in the respective Prospectus of the Plans, excluding Institutional Investments. 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 charged with liabilities arising out of any other business AXA Equitable may conduct. The amount retained by AXA Equitable in Separate Account No. 4 arises principally from (1) contributions from AXA Equitable, (2) expense risk charges accumulated in the account, and (3) 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 contract owners. Amounts retained by AXA Equitable are not subject to charges for expense risks, asset-based administration charges and distribution charges. Amount retained by AXA Equitable in the Account may be transferred at any time by AXA Equitable to its General Account ("General Account"). AXA Equitable's General Account is subject to creditor rights. 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 income and expenses for the period. Actual results could differ from those estimates. Investment securities for Separate Account No. 4 are valued as follows: Investment securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by AXA Equitable's investment officers. In general, the market value of securities which are readily available and deemed reliable are determined as follows: Securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price. FSA-14 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Continued) Futures contracts are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used. U.S. government securities and other debt instruments having 60 days or less remaining until maturity are valued at amortized cost if their original maturity was 60 days or less; or by amortizing their fair value as of the 61st day prior to maturity if their original term to maturity exceeded 60 days. Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. Other assets that do not have a readily available market price are valued at fair value as determined in good faith by AXA Equitable's investment officers. INVESTMENT TRANSACTIONS: Security transactions are recorded on the trade date. Amortized cost of debt securities where applicable is adjusted for amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date; interest income (including amortization of premium and discount on securities using the effective yield method) is accrued daily. Realized gains and losses on the sale of investments are computed on the basis of the identified cost of the related investments sold. The books and records of the Account are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Transaction gains or losses resulting from changes in the exchange rate during the reporting period or upon settlement of the foreign currency transactions are reflected under "Realized and Unrealized Gain (Loss) on Investments" in the Statement of Operations. Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held or sold during the year. FUTURES CONTRACTS: Futures contracts are agreements to buy or sell a security, foreign currency, or stock index for a set price in the future. Initial margin deposits are made upon entering into futures contracts and can be either in cash or securities. Separate Account No. 4 may buy or sell futures contracts solely for the purpose of protecting its securities against anticipated future changes in interest rates that might adversely affect the value of the Account's securities or the price of the securities that the Account intends to purchase at a later date. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each trading day. Variation margin payments for futures contracts are received or made, depending upon whether unrealized gains or losses are incurred. For the year ended December 31, 2015, the average monthly notional value of futures contracts held in Separate Account No. 4 was $487,386. All futures contracts were related to equity contracts. When the futures contract is closed, the Account records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Account's basis in the contract. Should interest rates or the price of securities move unexpectedly, the Account may not achieve the anticipated benefits of the financial futures contracts and may incur a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the prices of futures contracts, interest rates and the underlying hedged assets. MARKET AND CREDIT RISK: Futures contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The contract amounts of these futures contracts reflect the extent of the Account's exposure to off-balance sheet risk. Use of long futures FSA-15 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Concluded) contracts subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. The Account bears the market risk that arises from any changes in security values. The credit risk for futures contracts is limited to failure of the exchange or board of trade that acts as the counterparty of the Account's futures transactions. CONTRACTS IN PAYOUT: Net assets allocated to Contracts in the payout period are computed according to various mortality tables, depending on the year the benefits were purchased. The tables used are the 1951 GA, the 1971 GAM, the 1983 GAM, and the 1994 GAR. The assumed investment returns vary by Contract and range from 4 percent to 8.75 percent. The Contracts are participating group annuities, and thus, the mortality risk is borne by the Contractowner, as long as the Contract has not been discontinued. AXA Equitable retains the ultimate obligation to pay the benefits if the Contract funds become insufficient and the Contractowner elects to discontinue the contract. OTHER ASSETS AND LIABILITIES: Amounts due to/from the General Account represent receivables/payables for policy related transactions predominantly related to premiums, surrenders and death benefits. CONTRACT PAYMENTS AND WITHDRAWALS: Payments received from Contractowners represent contributions under the Contracts (excluding amounts allocated to the guaranteed interest option, reflected in the General Account) after the deduction of any applicable withdrawal changes. The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. Withdrawals are payments to participants and beneficiaries made under the terms of the Plans and include amounts that participants have requested to be withdrawn and paid to them. 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 Fund 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 the Contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable to the Account if the law is changed. FOREIGN TAXES: The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which it invests. 3. Fair Value Disclosures Under GAAP, fair value is 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. 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 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. FSA-16 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 3. Fair Value Disclosures (Concluded) Assets measured at fair value on a recurring basis are summarized below as of the dates indicated:
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2015 LEVEL 1 ----------------- SEPARATE ACCOUNT NO.4/(1)/ ----------------- ASSETS Investments: Common stocks Consumer discretionary..... $17,517,503 Consumer staples........... 9,202,128 Energy..................... 419,992 Financials................. 4,543,604 Health Care................ 14,052,418 Industrials................ 8,791,703 Materials & processing..... 2,840,301 Producer durables.......... -- Technology................. 22,948,921 Telecommunication services. 1,673,187 Utilities.................. 28,130 ----------- TOTAL COMMON STOCKS...... 82,017,887 Futures Contracts.......... 305,310 ----------- TOTAL LEVEL 1.............. $82,323,197 ===========
----------- (1)There were no significant transfers between Level 1, Level 2 and Level 3 during the year for Separate Account No. 4. 4. Purchases and Sales on Investments InvestmentSecurity Transactions For the year ended December 31, 2015, investment security transactions, excluding short-term debt securities, were as follows for Separate Account No. 4:
PURCHASES SALES ---------------------------- ---------------------------- U.S. U.S. STOCKS AND GOVERNMENT STOCKS AND GOVERNMENT FUND DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES ---- --------------- ------------ --------------- ------------ Separate Account No. 4. $17,214,855 -- $30,118,005 --
5. Related Party Transactions AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor for Separate Account No. 4. AllianceBernstein is a publicly traded limited partnership which is indirectly majority-owned by AXA Equitable and AXA Financial, Inc. (parent of AXA Equitable). AXA Advisors, LLC (AXA Advisors) is an affiliate of AXA Equitable, and a distributor and principal underwriter of the policies ("Contracts"). AXA Advisors is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer and is a member of the Financial Industrial Regulatory Authority ("FINRA"). The contracts are sold by financial professionals who are registered representatives of AXA Advisors and licensed insurance agents of AXA Network, LLC or its subsidiaries (affiliates of AXA Equitable). AXA Advisors receives commissions and other service-related payments under its distribution agreement with AXA Equitable and its networking agreement with AXA Network. FSA-17 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 5. Related Party Transactions (Concluded) In addition to using brokers and dealers to execute portfolio security transactions for accounts under their management, AXA Equitable, AllianceBernstein, and AXA Advisors may also enter into other types of business and securities transactions with brokers and dealers, which will be unrelated to allocation of the AXA Equitable Funds' portfolio transactions. 6. Contractowners Charges Charges and fees relating to the Fund are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Fund. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. RIA Charges and fees relating to the Fund are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Fund. Depending upon the terms of a contract, sales-related fees and operating expenses are paid by the contract holder (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value from contractowners. Fees with respect to the Retirement Investment Account (RIA) contracts are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.08% of the net assets attributable to RIA units is assessed for the AllianceBernstein Common Stock Fund. This fee is reflected as a reduction in RIA unit value. ADMINISTRATIVE FEES: Contracts investing in the Fund are subject to certain administrative expenses according to contract terms. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. These fees may include: Ongoing Operations Fee -- An expense charge is made based on the combined net balances of each fund. Depending upon when the employer adopted RIA, the monthly rate ranges from 1/12 of 1.25% to 1/12 of 0.50% or from 1/12 of 1.25% to 1/12 of 0.25%. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Participant Recordkeeping Services Charge -- Employers electing RIA's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Contingent Withdrawal Charge -- Certain withdrawals are subject to defined contingent withdrawal charges. The maximum charge is 6.00% of the total plan assets withdrawn. Loan Fee -- A loan fee equal to 1.00% of the amount withdrawn as loan principal is deducted on the date the plan loan is made. OPERATING AND EXPENSE CHARGES: In addition to the charges and fees mentioned above, the Fund is charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as reductions of unit value. MRP Charges and fees relating to the Fund paid to AXA Equitable are deducted in accordance with the terms of the various contracts which participate in the Fund. With respect to the Members Retirement Program these expenses consist of investment management, program expense charge, direct expenses and record maintenance. These charges and fees are paid to AXA Equitable. Fees with respect to the Members Retirement Program contracts are as follows: . Program Expense Charge -- AXA Equitable assesses a Program expense charge on a monthly basis, which is charged against accounts in the plans that invest in the Separate Account. AXA Equitable determines the Program expense charge for each plan on the last day of each month, based on two factors: (1) the average account value of the accounts in the plan, and (2) the value of the total plan assets invested in the Members Retirement Program by the plan, on that date. The Program expense charge is applied to all assets in the plan. All participants in a plan pay the Program expense charge at the same percentage rate, regardless of individual FSA-18 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 6. Contractowner Charges (Continued) account value. If the Average account value under the Plan is $75,000 or less, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.80% of the next $250,000 and (iii) 0.65% of the excess over $500,000. If the Average account value under the Plan is more than $75,000, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.70% of the next $250,000 and (iii) 0.55% of the excess over $500,000. . Investment Management Fees -- An expense charge is made daily at an effective annual rate of 0.30% of the net assets of the AllianceBernstein Growth Equity Fund. This is fee is reflected as a reduction in MRP unit value. . Direct Operating and Other Expenses -- In addition to the charges and fees mentioned above, the Fund is charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. This is fee is reflected as a reduction in MRP unit value. . A record maintenance and report fee of $3.75 per participant is deducted quarterly as a liquidation of fund units. EPP Charges and fees relating to the Fund are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts, which participate in the Fund. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) reduction in unit value. Fees with respect to the Equi-Pen-Plus Master Plan and Retirement Trust are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.08% of the total plan and trust net assets is deducted daily for the AllianceBernstein Common Stock Fund. This fee is reflected as reduction in EPP unit value. ADMINISTRATIVE FEES: Ongoing Operations Fee -- An expense charge is made based on each client's combined balance of Master Plan and Trust net assets in the Funds and AXA Equitable's Fixed Income Accounts at a monthly rate of 1/12 of (i) 1% of the first $500,000, (ii) 0.75% of the next $500,000 and (iii) 0.50% of the excess over $1,000,000. The ongoing operations fee is generally paid via a liquidation of units held in the fund. Participant Recordkeeping Services Charge -- Employers electing Equi-Pen-Plus's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. The participant recordkeeping service charge is generally paid via a liquidation of units held in the fund. Withdrawal Charge -- A charge is applied if the client terminates plan participation in the Master Retirement Trust ("Master Trust") and if the client transfers assets to another funding agency before the fifth anniversary of the date AXA Equitable accepts the participation agreement. The redemption charge is generally paid via a liquidation of units held in the fund and will be based on the following schedule:
FOR TERMINATION OCCURRING IN: WITHDRAWAL CHARGE: ----------------------------- ------------------------------ Years 1 and 2.......... 3% of all Master Trust assets Years 3 and 4.......... 2% of all Master Trust assets Year 5................. 1% of all Master Trust assets After Year 5........... No Withdrawal Charge
Operating and Expense Charges: In addition to the charges and fees mentioned above, the Separate Account No. 4 is charged for certain costs and expenses directly related to their operations. These may include custody, audit and printing of reports. These charges and fees are reflected as reduction of unit value. INSTITUTIONAL ASSET MANAGEMENT FEES Asset management fees are charged to clients investing in the Separate Account. Asset management fees for the Growth Stock Account is an expense charge determined monthly with an effective annual rate of 0.08%. FSA-19 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 6. Contractowner Charges (Concluded) Asset management fees are paid to AXA Equitable. Clients can either pay the fee directly by remittance to the Separate Account or via liquidation of units held in the Separate Account. ADMINISTRATIVE FEES Certain client contracts provide for a fee for administrative services to be paid directly to AXA Equitable. This administrative fee is calculated according to the terms of the specific contract and is generally paid via a liquidation of units held in the funds in which the contract invests. The payment of the fee for administrative services has no effect on other Separate Account clients or the unit values of the Separate Account. OPERATING AND EXPENSE CHARGES In addition to the charges and fees mentioned above, Separate Account No. 4 is charged for certain costs and expenses directly related to its operations. These charges may include custody and audit fees, and result in reduction of Separate Account unit values. 7. Changes in Units Outstanding Accumulation units issued and redeemed as of December 31, were (in thousands):
ALLIANCEBERNSTEIN COMMON STOCK FUND ---------------------------------- DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- RIA Issued.......... -- -- Redeemed........ -- -- --- --- Net Decrease.... -- -- === === ALLIANCEBERNSTEIN GROWTH EQUITY FUND ---------------------------------- DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- MRP Issued.......... 4 8 Redeemed........ (12) (12) --- --- Net Decrease.... (8) (4) === === ALLIANCEBERNSTEIN COMMON STOCK FUND ---------------------------------- DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- EPP Issued.......... -- -- Redeemed........ -- -- --- --- Net Decrease.... -- -- === === GROWTH STOCK ACCOUNT ---------------------------------- DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INSTITUTIONAL Issued.......... -- -- Redeemed........ -- -- --- --- Net Decrease.... -- -- === ===
8. Financial Highlights AXA Equitable issues a number of registered group annuity contracts that allow employer plan assets to accumulate on a tax-deferred basis. The contracts are typically designed for employers wishing to fund defined benefit, defined contribution and/or 401(k) plans. Annuity contracts available through AXA Equitable are the Retirement Investment Account ("RIA"), Members Retirement Program ("MRP"), and Equi-Pen-Plus ("EPP") (collectively, the Plans). Assets of the Plans are invested in a number of investment Funds (available Funds vary by Plan). FSA-20 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONCLUDED) DECEMBER 31, 2015 8. Financial Highlights (Concluded) Institutional units presented on the Statement of Assets and Liabilities reflect investments in the Fund by contractowners of group annuity contracts issued by AXA Equitable. Institutional unit values are determined at the end of each business day. Institutional unit values reflect the investment performance of the Fund for the day and charges and expenses deducted by the Fund. Contract unit values (RIA, MRP, and EPP) reflect the same investment results, prior to deduction for contract specific charges, earned by the Institutional units. In addition, contract unit values reflect certain investment management and accounting fees, which vary by contract. These fees are charged as a percentage of net assets and are disclosed below for the Plans as a percentage of net assets attributable of such units. Shown below is accumulation unit value information for units outstanding of Separate Account No. 4 (Pooled) for the periods indicated.
UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ---------- ----------- ------------ -------- -------- SEPARATE ACCOUNT NO. 4 ALLIANCEBERNSTEIN COMMON STOCK FUND December 31, 2015. RIA* - contract charge 0.08% (a) $ 1,586.06 2 $ 2,999 5.65% 0.16% December 31, 2014. RIA* - contract charge 0.08% (a) $ 1,501.17 2 $ 3,544 12.86% 0.14% December 31, 2013. RIA* - contract charge 0.08% (a) $ 1,330.14 2 $ 3,290 33.23% 0.20% December 31, 2012. RIA* - contract charge 0.08% (a) $ 998.36 3 $ 3,083 15.86% 0.11% December 31, 2011. RIA* - contract charge 0.08% (a) $ 861.69 4 $ 3,275 3.57% 0.16% December 31, 2015. EPP* - contract charge 0.08% (a) $ 1,645.69 1 $ 1,391 5.65% 0.16% December 31, 2014. EPP* - contract charge 0.08% (a) $ 1,557.61 1 $ 1,570 12.86% 0.14% December 31, 2013. EPP* - contract charge 0.08% (a) $ 1,380.15 1 $ 1,468 33.23% 0.20% December 31, 2012. EPP* - contract charge 0.08% (a) $ 1,035.90 1 $ 1,102 15.86% 0.11% December 31, 2011. EPP* - contract charge 0.08% (a) $ 894.10 3 $ 2,616 3.57% 0.16% ALLIANCEBERNSTEIN GROWTH EQUITY FUND December 31, 2015. MRP*- contract charge 0.30% (a) $ 615.04 57 $34,827 5.16% 0.39% December 31, 2014. MRP*- contract charge 0.30% (a) $ 584.84 65 $37,929 12.60% 0.36% December 31, 2013. MRP*- contract charge 0.30% (a) $ 519.39 69 $35,727 32.93% 0.42% December 31, 2012. MRP*- contract charge 0.30% (a) $ 390.71 77 $30,232 15.60% 0.33% December 31, 2011. MRP*- contract charge 0.30% (a) $ 337.99 80 $27,159 3.34% 0.38% GROWTH STOCK ACCOUNT December 31, 2015. Institutional $17,164.79 3 $43,187 5.74% 0.08% December 31, 2014. Institutional $16,233.13 3 $48,535 12.95% 0.12% December 31, 2013. Institutional $14,372.16 3 $46,675 33.34% 0.12% December 31, 2012. Institutional $10,778.36 4 $40,660 15.95% 0.03% December 31, 2011. Institutional $ 9,295.69 4 $36,625 3.65% 0.08%
---------- (a)Contract Charge as described in Note 6 included in these financial statements. * Expenses as a percentage of average net assets (at the rates indicated) consisting of mortality and expense charges and other expenses for each period presented. The ratios included only those expenses that result in a direct reduction to unit values. 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. **These amounts represent the total return for the periods indicated and expenses assessed through the reduction of unit values. These ratios do not include any expenses, such as premium and withdrawal charges, as applicable, or expenses assessed through the redemption of units. The total return is calculated for each period indicated from the effective date through the end of the reporting period. 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. Investment Income Ratios Shown below are the investment income ratios throughout the periods indicated for Separate Account No. 4. The investment income ratio is calculated by taking the gross investment income earned divided by the average net assets of a fund during the periods indicated.
YEAR ENDED DECEMBER 31, ---------------------------- 2015 2014 2013 2012 2011 ---- ---- ---- ---- ---- Separate Account No. 4. 1.61% 1.64% 1.71% 1.88% 1.54%
10.Subsequent Events All material subsequent transactions and events have been evaluated for the period from December 31, 2015 through 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-21 Members Retirement Program STATEMENT OF ADDITIONAL INFORMATION MAY 1, 2016 -------------------------------------------------------------------------------- This Statement of Additional Information (''SAI'') is not a prospectus. You should read this SAI in conjunction with AXA Equitable's prospectus dated May 1, 2016 for the Members Retirement Program. A copy of the prospectus to which this SAI relates is available at no charge by writing to AXA Equitable at Box 4875, Syracuse, New York 13221 or by calling our toll-free telephone number, in the U.S., 1-800-526-2701 or 1-800-526-2701-0 from France, Israel, Italy, Republic of Korea, Switzerland, and the United Kingdom. Definitions of special terms used in this SAI are found in the prospectus. Certain of the cross references in this SAI are contained in the prospectus dated May 1, 2016 to which this SAI relates. TABLE OF CONTENTS PAGE IN SAI Who is AXA Equitable? 2 Funding of the Program 2 Your responsibilities as employer 2 Procedures for withdrawals, distributions and transfers 2 Provisions of the IRS Pre-Approved Plan 4 Investment restrictions and certain investment techniques applicable to the AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds 6 Portfolio holdings policy for the Pooled Separate Accounts 7 Fund transactions 8 Investment management and accounting fee 9 Portfolio managers' information (AllianceBernstein Growth Equity Fund, AllianceBernstein Mid Cap Growth Fund and AllianceBernstein Balanced Fund) 10 Investment professional conflict of interest disclosure 13 Portfolio manager compensation 13 Distribution of the contracts 14 Custodian and independent registered public accounting firm 14 Our management 15 Financial statements index 21 Financial statements FSA-1 Copyright 2016 by AXA Equitable Life Insurance Company, 1290 Avenue of the Americas, New York, New York 10104. All rights reserved. #32597 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 Financial, Inc., which is an indirect wholly owned subsidiary of AXA S.A. ("AXA"), a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, AXA exercises significant influence over the operations and capital structure of AXA Equitable. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Equitable is solely responsible for paying all amounts owed under your contract. FUNDING OF THE PROGRAM The Program is primarily funded through a group annuity contract issued by AXA Equitable. The Trustee holds the contract for the benefit of employers and participants in the Program. YOUR RESPONSIBILITIES AS EMPLOYER If you adopt the IRS Pre-Approved Plan, you as the employer and plan administrator will have certain responsibilities, including: . sending us your contributions at the proper time and in the proper format (including contribution type and fiscal year); . maintaining all personnel records necessary for administering your plan; . determining who is eligible to receive benefits; . forwarding to us and, when required signing, all the forms your employees are required to submit; . distributing summary plan descriptions, confirmation notices, quarterly notices and participant annual reports to your employees and former employees; . distributing our prospectuses and confirmation notices to your employees and, in some cases, former employees; . filing an annual information return for your plan with the Department of Labor, or Internal Revenue Service if required; . providing us the information with which to run special non-discrimination tests, if you have a 401(k) plan or your plan accepts post-tax employee or employer matching contributions; . determining the amount of all contributions for each participant in the plan; . forwarding salary deferral, including designated Roth contributions if applicable, and post-tax employee contributions to us as soon as administratively feasible (and in any event, no later than the 15th business day of the month following the month in which the employer withholds or receives participant contributions.) The Department of Labor provides that if any employer (with less than 100 participants) deposits participant contribution amounts within seven business days of when they are withheld or received then it is considered to be a timely deposit and satisfies the plan asset rules. . selecting interest rates and monitoring default procedures if you elect the loan provision in your plan; and . providing us with written instructions for allocating amounts in the plan's forfeiture account. If you, as an employer, have an individually designed plan, your responsibilities will not be increased in any way by adopting the Pooled Trust for investment only. We can provide guidance and assistance in the performance of your responsibilities. If you have questions about any of your obligations, you can contact our Account Executives at 1-800-526-2701 or write to us at Box 4875, Syracuse, New York 13221. PROCEDURES FOR WITHDRAWALS, DISTRIBUTIONS AND TRANSFERS PRE-RETIREMENT WITHDRAWALS. Under the IRS Pre-Approved Plan, self-employed persons generally may not receive a distribution prior to age 59 1/2, and employees generally may not receive a distribution prior to severance from employment. However, if the Plans are maintained as profit sharing plans, you may request distribution of benefits after you reach age 59 1/2 even if you are still working, as long as you are 100% vested. If the IRS Pre-Approved Plan is maintained as a 401(k) plan and you are under age 59 1/2, you may withdraw your own 401(k) elective deferral contributions (either pre-tax or Roth), only if you demonstrate financial hardship within the meaning of applicable income tax regulations and the employer has elected this option on its adoption agreement. In a 401(k) plan, a distribution on account of a hardship is limited to the maximum distributable amount. That amount does not include earnings, qualified non-elective contributions and qualified matching contributions. Each withdrawal must be at least $1,000 (or, if less, your entire account balance or the amount of your hardship withdrawal under a 401(k) plan). If your employer terminates the plan, all amounts (subject to Guaranteed Rate Account restrictions) may be distributed to participants at that time (except elective deferral contribution amounts including Roth if there is a successor plan). You may withdraw all or part of your Account Balance under the IRS Pre-Approved Plan attributable to post-tax employee contributions at any time, subject to any withdrawal restrictions applicable to the Investment Options, provided that you withdraw at least $300 at a time (or, if less, your Account Balance attributable to post-tax employee contributions). See ''Tax information'' in the prospectus. If an employer's 401(k) plan permits, an employee may designate some or all of elective deferral contributions as ''designated Roth contributions'', which are made on a post-tax basis to the 401(k) arrangement. These contributions are subject to the same withdrawal restrictions as pre-tax elective deferral contributions. We pay all benefit payments (including withdrawals due to plan terminations) in accordance with the rules described below in the ''Benefit Distributions'' discussion. We effect all other participant withdrawals as of the close of the business day we receive the properly completed form. In addition, if you are married, your spouse may have to consent in writing before you can make any type of withdrawal, except for the purchase of a Qualified Joint and Survivor Annuity. See ''Spousal Consent Requirement'' later in this SAI. 2 Under an individually designed plan, the availability of pre-retirement withdrawals depends on the terms of the plan. We suggest that you ask your employer what types of withdrawals are available under your plan. Transfers and withdrawals from certain investment funds may be delayed if there is any delay in redemption of shares of the respective mutual funds in which the Funds invest. We generally do not expect any delays. PLEASE NOTE THAT GENERALLY YOU MAY NOT MAKE WITHDRAWALS FROM THE GUARANTEED RATE ACCOUNTS ("GRAS") PRIOR TO MATURITY, EVEN IF THE EMPLOYER PLAN PERMITS WITHDRAWALS PRIOR TO THAT TIME. SEE ''PREMATURE WITHDRAWALS AND TRANSFERS FROM A GRA'' BELOW. BENEFIT DISTRIBUTIONS. In order for you to begin receiving benefits under the IRS Pre-Approved Plan, your employer must send us your properly completed Election of Benefits form and, if applicable, Beneficiary Designation form. Your benefits will commence according to the provisions of your plan. Under an individually designed plan, your employer must send us a request for disbursement form. We will process single sum payments as of the close of business on the day we receive a properly completed form. A check payable to the plan's trustee will be forwarded within five days after processing begins. If you wish to receive annuity payments, your plan's trustee may purchase a variable annuity contract from us. We will pay annuity payments directly to you and payments will commence according to the provisions of your plan. Please note that we use the value of your vested benefits at the close of the business day payment is due to determine the amount of benefits you receive. We will not, therefore, begin processing your check until the following business day. You should expect your check to be mailed within five days after processing begins. Annuity checks can take longer. If you would like expedited delivery at your expense, you may request it on your Election of Benefits Form. Distributions under a qualified retirement plan such as yours are subject to extremely complicated legal requirements. When you are ready to retire, we suggest that you discuss the available payment options with your employer or financial advisor. Our Account Executives can provide you or your employer with information. MANDATORY CASHOUTS. The Internal Revenue Code of 1986 (Code) provides that a trust under a qualified plan would not be a qualified trust unless the plan provides that when a mandatory distribution of more than $1,000 is to be made and the participant does not elect a distribution, the plan administrator must roll over such distribution to an individual retirement plan and must provide the plan participant with notice of such direct rollover. DEATH BENEFITS. If a participant in the IRS Pre-Approved Plan dies without designating a beneficiary, the vested benefit will automatically be paid to the spouse or, if the participant is not married, to the participant's surviving children. If the participant has no surviving children, the participant's vested benefit will be paid to the participant's estate. ELIGIBLE ROLLOVER DISTRIBUTIONS AND FEDERAL INCOME TAX WITHHOLDING. All ''eligible rollover distributions'' are subject to mandatory federal income tax withholding of 20% unless the participant elects to have the distribution directly rolled over to an "eligible retirement plan" which will accept the rollover. Eligible retirement plans include qualified plans, individual retirement arrangements ("IRAs"), Section 403(b) plans, and governmental employer Section 457(b) plans. After 2015, eligible rollover distributions from qualified plans may be rolled over to a SIMPLE IRA. We anticipate that regulatory guidance will be necessary before we implement rollovers into SIMPLE IRAs. An ''eligible rollover distribution'' is generally any distribution that is not one of a series of substantially equal periodic payments made (not less frequently than annually): (1) for the life (or life expectancy) of the plan participant or the joint lives (or joint life expectancies) of the plan participant and his or her designated beneficiary, or (2) for a specified period of 10 years or more. In addition, the following are not subject to mandatory 20% withholding: . hardship withdrawals; . certain corrective distributions under Code Section 401(k) plans; . loans that are treated as distributions; . a distribution to a beneficiary other than to a surviving spouse or a current or former spouse under a qualified domestic relations order; . a direct rollover to an inherited IRA maintained for the benefit of the beneficiary; and . required minimum distributions under Code Section 401(a)(9). If we make a distribution to a participant's surviving spouse, or to a current or former spouse under a qualified domestic relations order, the distribution may be an eligible rollover distribution, subject to mandatory 20% withholding, unless one of the exceptions described above applies. If a distribution is not an ''eligible rollover distribution,'' we will withhold income tax from all taxable payments unless the recipient elects not to have income tax withheld. PREMATURE WITHDRAWALS AND TRANSFERS FROM A GRA. Transfers may not be made from one GRA to another or from a GRA to one of the other investment options until the maturity date of the GRA. Likewise, you may not remove amounts from a GRA prior to maturity in order to obtain a plan loan. There are no withdrawal restrictions on amounts from GRAs for hardship, in-service, plan transfer or plan termination. There are no penalties on amounts withdrawn from GRAs. MATURING GRAS. You may arrange in advance for the reinvestment of your maturing GRAs. (GRA maturity allocation change requests received on a business day before 4:00 P.M. Eastern Time are effective four days after we receive them. GRA maturity allocation change requests received after 4:00 P.M. Eastern Time or on a non-business day are effective four days after the next business day after we receive them.) Maturing GRA allocation changes can only be requested by submitting a GRA Maturity Allocation Form to the Trustees. . The instructions you give us remain in effect until you change them (again, your GRA maturity allocation change request will be processed as described above). . If you did not provide GRA maturity instructions, your maturing GRAs will be allocated to the AXA Moderate Allocation Portfolio. You can, however, change that election at anytime by following the above. 3 PROVISIONS OF THE IRS PRE-APPROVED PLAN PLAN ELIGIBILITY REQUIREMENTS. Under the IRS Pre-Approved Plan, the employer specifies the eligibility requirements for its plan in the Adoption Agreement. The employer may exclude any employee who has not attained a specified age (not to exceed 21) and completed a specified number of years (not to exceed two) in each of which he completed 1,000 hours of service. No more than one year of eligible service may be required for a 401(k) arrangement. CONTRIBUTIONS TO QUALIFIED PLANS. We outline below the current federal income tax rules relating to contributions under qualified retirement plans. This outline assumes that you are not a participant in any other qualified retirement plan. The employer deducts contributions to the plan in the year it makes them. As a general rule, an employer must make contributions for any year by the due date (including extensions) for filing its federal income tax return for that year. However, Department of Labor (''DOL'') rules generally require that the employer contribute participants' salary deferral contribution amounts, including designated Roth contributions if applicable, (or any non-Roth post-tax employee contribution amounts) under a 401(k) plan as soon as practicable after the payroll period applicable to a deferral. In any event, the employer must make these contributions no later than the 15th business day of the month following the month in which the employer withholds or receives participant contributions. The Department of Labor provides that if an employer (with less than 100 participants) deposits participant contribution amounts within seven business days of when they are withheld or received then it is considered to be a timely deposit and satisfies the plan asset rules. If the employer contributes more to the plan than it may deduct under the rules we describe below, the employer (a) may be liable for a 10% penalty tax on that nondeductible amount and (b) may risk disqualifying the plan. CONTRIBUTIONS TO THE IRS PRE-APPROVED PLAN. The employer makes annual contributions to its plan based on the plan's provisions. An employer that adopts the IRS Pre-Approved Plan as a profit sharing plan makes discretionary contributions as it determines annually. The aggregate employer contribution to the plan may not exceed 25% of all participants' compensation for the plan year. For plan purposes, compensation for self-employed persons does not include deductible plan contributions on behalf of the self-employed person. A 401(k) arrangement is available as part of the profit sharing plan. Employees may make pre-tax contributions to a plan under a 401(k) arrangement. The maximum amount that highly compensated employees may contribute depends on (a) the amount that non-highly compensated employees contribute and (b) the amount the employer designates as a non-forfeitable 401(k) contribution. Different rules apply to a SIMPLE 401(k) or safe harbor 401(k). A designated Roth contribution feature which permits elective deferrals to be made on a post-tax basis ''Roth 401(k)'' option may be added to a 401(k) plan by an employer. These amounts can be withdrawn tax-free if it is considered a qualified Roth distribution. A qualified Roth distribution is one that is made at least five taxable years after the first designated Roth contribution is made under the plan and after attainment of age 59 1/2, death or disability. For 2016, a ''highly compensated'' employee, for this purpose, is (a) an owner of more than 5% of the business, or (b) anyone with earnings of more than $120,000 from the business. For (b), the employer may elect to include only employees in the highest paid 20%. In any event, the maximum amount each employee may defer is limited to $18,000 for 2016 reduced by that employee's salary reduction contributions to simplified employee pension plans established before 1997 (SARSEPs), SIMPLE plans, employee contributions to tax deferred Section 403(b) arrangements, and contributions deductible by the employee under a trust described under Section 501(c)(18) of the Internal Revenue Code. The maximum amount a participant may defer in a SIMPLE 401(k) plan for 2016 is $12,500. The additional ''catch-up'' elective deferral for 2016 is up to $6,000 which can be made by any employees who are at least age 50 at any time during 2016. Matching contributions to a 401(k) plan on behalf of a self-employed individual are no longer treated as elective deferrals, and are the same as matching contributions for other employees. Employers may adopt a safe harbor 401(k) arrangement. Under this arrangement, an employer agrees to offer a matching contribution equal to (a) 100% of salary deferral contributions, both pre-tax and Roth, up to 3% of compensation and (b) 50% of salary deferral contributions, both pre-tax and Roth that exceed 3% but are less than 5% of compensation or a 3% non-elective contribution to all eligible employees. These contributions must be non-forfeitable. If the employer makes these contributions and meets the notice requirements for safe harbor 401(k) plans, the plan is not subject to non-discrimination testing on salary deferral and matching or non-elective contributions described above. If the employer adopts the IRS Pre-Approved Plan as a defined contribution pension plan, its contribution is equal to the percentage of each participant's compensation that the Adoption Agreement specifies. Under any type of plan, an employer must disregard compensation in excess of $265,000 in 2016 in making contributions. This amount will generally be adjusted for cost-of-living changes in future years in $5,000 increments rounded to the next lowest multiple of $5,000. An employer may integrate contributions with Social Security. This means that contributions, for each participant's compensation, that exceed the integration level may be greater than contributions for compensation below the integration level. The federal tax law imposes limits on this excess. Your Account Executive can help you determine the legally permissible contribution. Except in the case of certain non-top heavy plans, contributions for non-key employees must be at least 3% of compensation (or, under the profit sharing plan, the percentage the employer contributes for key employees, if less than 3%). In 2016, ''key employee'' means (a) an officer of the business with earnings of more than $170,000 or (b) an owner of more than 5% of the business, or (c) an owner of more than 1% of the business with earnings of more than $150,000. For purposes of (a), no more than 50 employees (or, if less, the greater of three or 10% of the employees) shall be treated as officers. Certain plans may also permit participants to make non-Roth post-tax contributions. We will maintain a separate account to reflect each participant's post-tax contributions and the earnings (or losses) on 4 those contributions. Post-tax contributions are subject to complex rules under which the maximum amount that a highly compensated employee may contribute depends on the amount that non-highly compensated employees contribute. BEFORE PERMITTING ANY HIGHLY-COMPENSATED EMPLOYEE TO MAKE POST-TAX CONTRIBUTIONS, THE EMPLOYER SHOULD VERIFY THAT IT HAS PASSED ALL NON-DISCRIMINATION TESTS. If an employer employs only ''highly compensated'' employees (as defined above), the plan will not accept post-tax contributions. In addition, the employer may make matching contributions to certain plans, i.e., contributions that are based on the amount of post-tax or pre-tax 401(k) contributions that plan participants make. Special non-discrimination rules apply to matching contributions. These rules may limit the amount of matching contributions that an employer may make for highly compensated employees. These non-discrimination rules for matching contributions do not apply to SIMPLE and safe harbor 401(k) plans. Contributions (including forfeiture amounts) for each participant in 2016 may not exceed the lesser of (a) $53,000 and (b) 100% of the participant's earnings (excluding, in the case of self-employed persons, all deductible plan contributions). The participant's post-tax contributions count toward this limitation. Each participant's Account Balance equals the sum of the amounts accumulated in each investment option. We will maintain separate records of each participant's interest in each of the Investment Options attributable to employer contributions, 401(k) non-elective contributions, 401(k) elective contributions, post-tax employee contributions and employer matching contributions. We will also account separately for any amounts rolled over from a previous employer's plan. Our records will also reflect each participant's percentage of vesting (see below) in his/her Account Balance attributable to employer contributions and employer matching contributions. The participant will receive quarterly notices and confirmation of certain transactions. The participant will also receive an annual statement showing the participant's Account Balance in each investment option attributable to each type of contribution. Based on information that you supply, we will run the required special non-discrimination tests (Actual Deferral Percentage and Actual Contribution Percentage) applicable to (a) 401(k) plans (other than SIMPLE 401(k) and safe harbor 401(k)) and (b) plans that accept post-tax employee contributions or employer matching contributions. Non-discrimination tests do not apply to SIMPLE 401(k) plans, if the employer makes (a) a matching contribution equal to 100% of the amount of the elective deferral contribution, whether pre-tax or Roth, up to 3% of compensation, or (b) a 2% non-elective contribution to all eligible employees. The employer must also follow the notification and filing requirements outlined in the Plan Document, to avoid non-discrimination tests. Under a SIMPLE 401(k) the employer must offer all eligible employees the opportunity to defer part of their salary into the plan and make either a matching or non-elective contribution. The matching contribution must be 100% of the elective deferral contribution, whether pre-tax or Roth, up to 3% of compensation. The non-elective contribution is 2% of compensation, which the employer must make for all eligible employees, even those not deferring. The matching or non-elective contribution must be non-forfeitable. The employer must notify employees which contribution the employer will make 60 days before the beginning of the year. Elective deferrals to a 401(k) plan are subject to applicable FICA (social security), Medicare and FUTA (unemployment) taxes. They may also be subject to the state income tax. ALLOCATION OF CONTRIBUTIONS. You, as employer or participant, may allocate contributions among any number of the investment options. You may change allocation instructions at any time, and as often as needed, by calling our Automated Voice Response System or accessing the website on the Internet. New instructions become effective on the business day we receive them. Employer contributions may be allocated in different percentages than employee contributions. The allocation percentages elected for employer contributions automatically apply to any 401(k) qualified non-elective contributions, qualified matching contributions, employer matching contributions, SIMPLE employer, safe harbor non-elective and safe harbor matching contributions and rollover contributions. Your allocation percentages for employee contributions automatically apply to any post-tax employee and salary deferral contributions (including pre-tax salary deferral and Roth contributions (post-tax salary deferral). IF WE HAVE NOT RECEIVED VALID INSTRUCTIONS, WE WILL ALLOCATE CONTRIBUTIONS TO THE PLAN'S QUALIFIED DEFAULT INVESTMENT ATERNATIVE WHICH IS THE AXA MODERATE ALLOCATION PORTFOLIO, UNLESS THE PLAN HAS ELECTED AN ALTERNATIVE INVESTMENT OPTION(S). You may, of course, transfer to another investment option at any time, and provide us with contribution allocation instructions for future contributions. If you do not submit investment instructions, you will be treated as exercising actual control over your assets and the Plan's fiduciary will not be subject to fiduciary liability under ERISA if the Plan's fiduciary makes investments in default investment options in accordance with rules provided by the DOL. DOL has published final regulations that, consistent with the Pension Protection Act of 2006, instruct the Plan sponsors that the default investments must include a mix of asset classes consistent with capital preservation, long term capital appreciation or a blend of both. In order for this exemption to apply to the Plan's fiduciary, the fiduciary must select qualified default investment alternatives as defined in the regulations and the Plan must provide notice to participants of their rights and obligations within a reasonable time before the beginning of each plan year. THE IRS PRE-APPROVED PLAN AND SECTION 404(C) OF ERISA. The IRS Pre-Approved Plan is a participant directed individual account plan designed to comply with the requirements of Section 404(c) of ERISA. Section 404(c) of ERISA, and the related Department of Labor (DOL) regulation, provide that if a participant or beneficiary exercises control over the assets in his or her plan account, plan fiduciaries will not be liable for any loss that is the direct and necessary result of the participant's or beneficiary's exercise of control. This means that if the employer plan complies with Section 404(c), participants can make and are responsible for the results of their own investment decisions. The IRS Pre-Approved Plan is intending to comply with Section 404(c) must, among other things, (a) make a broad range of investment choices available to participants and beneficiaries and (b) provide them with adequate information to make informed investment decisions. The Investment Options and documentation available under the IRS Pre-Approved Plan provide the broad range of investment choices and information needed in order to meet the requirements of Section 404(c). However, while our suggested summary plan descriptions, annual reports, prospectuses, and confirmation notices provide 5 the required investment information, the employer is responsible for distributing this information in a timely manner to participants and beneficiaries. You should read this information carefully before making your investment decisions. VESTING. Vesting refers to the participant's rights with respect to that portion of a participant's Account Balance attributable to employer contributions under the IRS Pre-Approved Plan. If a participant is ''vested,'' the amount or benefit in which the participant is vested belongs to the participant, and may not be forfeited. The participant's Account Balance attributable to (a) 401(k) contributions (including salary deferral, qualified non-elective and qualified matching contributions), (b) post-tax employee contributions and (c) rollover contributions always belongs to the participant, and is non-forfeitable at all times. A participant becomes fully vested in all benefits if still employed at death, disability, attainment of normal retirement age or upon termination of the plan. If the participant terminates employment before that time, any benefits that have not yet vested under the plan's vesting schedule are forfeited. The normal retirement age is 65 under the IRS Pre-Approved Plan unless the employer elects a lower age on its Adoption Agreement. Benefits must vest in accordance with any of the schedules below or one at least as favorable to participants:
------------------------------------------------------------------------------------- SCHEDULE A SCHEDULE B SCHEDULE C ------------------------------------------------------------------------------------- YEARS OF VESTED VESTED VESTED SERVICE PERCENTAGE PERCENTAGE PERCENTAGE ------------------------------------------------------------------------------------- 1 0% 0% 100% 2 20 0 100 3 40 100 100 4 60 100 100 5 80 100 100 6 100 100 100 -------------------------------------------------------------------------------------
If the plan requires more than one year of service for participation in the plan, the plan must use Schedule C. All contributions to a SIMPLE 401(k) plan are 100% vested and not subject to the vesting schedule above. This rule, however, does not apply to employer and matching contributions made to a plan before the plan is amended to become a SIMPLE 401(k) plan. Non-elective and matching contributions required under a safe harbor 401(k) arrangement are 100% vested and not subject to the vesting schedule above. Employer contributions are required to vest at least as quickly as under a 3-year cliff or a 6-year ''graded vesting'' schedule. The 6-year schedule requires 20% vesting after 2 years of service increasing 20% per year thereafter. INVESTMENT RESTRICTIONS AND CERTAIN INVESTMENT TECHNIQUES APPLICABLE TO THE ALLIANCEBERNSTEIN GROWTH EQUITY, ALLIANCEBERNSTEIN MID CAP GROWTH AND ALLIANCEBERNSTEIN BALANCED FUNDS (FOR AN EXPLANATION OF THE INVESTMENT RESTRICTIONS APPLICABLE TO ALL FUNDS OTHER THAN THE ALLIANCEBERNSTEIN GROWTH EQUITY FUND, THE ALLIANCEBERNSTEIN MID CAP GROWTH FUND AND THE ALLIANCEBERNSTEIN BALANCED FUND, SEE ''INVESTMENT RESTRICTIONS'' IN THE APPLICABLE TRUST STATEMENT OF ADDITIONAL INFORMATION.) None of the AllianceBernstein Mid Cap Growth, AllianceBernstein Growth Equity and AllianceBernstein Balanced Funds will: . trade in foreign exchanges (except the AllianceBernstein Balanced Fund will trade in foreign exchanges, except those that fall into the MSCI Emerging Markets country definition, with respect to the Global Equity sub-portfolio; . trade in commodities or commodity contracts (except the AllianceBernstein Balanced Fund is permitted to enter into hedging transactions through the use of currency forwards, as described in the prospectus); . make an investment in order to exercise control or management over a company; . underwrite the securities of other companies, including purchasing securities that are restricted under the 1933 Act or rules or regulations thereunder (restricted securities cannot be sold publicly until they are registered under the 1933 Act), except as stated below; . make short sales, except when the Fund has, by reason of ownership of other securities, the right to obtain securities of equivalent kind and amount that will be held so long as they are in a short position; . purchase real estate or mortgages, except as stated below. The Funds may buy shares of real estate investment trusts listed on stock exchanges; . have more than 5% of its assets invested in the securities of any one registered investment company. A Fund may not own more than 3% of an investment company's outstanding voting securities. Finally, total holdings of investment company securities may not exceed 10% of the value of the Fund's assets; . purchase any security on margin or borrow money except for short-term credits necessary for clearance of securities transactions; . make loans, except loans through the purchase of debt obligations or through entry into repurchase agreements; or . invest more than 10% of its total assets in restricted securities, real estate investments, or portfolio securities not readily marketable. The AllianceBernstein Growth Equity and AllianceBernstein Balanced Funds will not make an investment in an industry if that investment would make the Fund's holding in that industry exceed 25% of its assets. The United States government, and its agencies and instrumentalities, are not considered members of any industry. The AllianceBernstein Growth Equity Fund will not purchase or write puts and calls (options). The AllianceBernstein Mid Cap Growth Fund will not purchase or write puts (options). The following investment techniques may be used by the AllianceBernstein Balanced Fund: Mortgage-related securities -- The AllianceBernstein Balanced Fund may invest in mortgage-related securities (including agency and nonagency fixed, ARM and hybrid pass throughs, agency and non-agency CMO's, commercial mortgage-backed securities and dollar rolls). 6 Principal and interest payments made on mortgages in the pools are passed through to the holder of securities. Payment of principal and interest on some mortgage-related securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of the U.S. Government (in the case of securities guaranteed by the Government National Mortgage Association, or ''GNMA''), or guaranteed by agencies or instrumentalities of the U.S. Government (in the case of securities guaranteed by the Federal National Mortgage Corporation (''FNMA'') or the Federal Home Loan Mortgage Corporation (''FHLMC''), which were until recently supported only by discretionary authority of the U.S. Government to purchase the agency's obligations and are now guaranteed by Preferred Stock Purchase Agreements (each a "PSPA") under which, if the Federal Housing Finance Agency ("FHFA") determines that FNMA's or FHLMC's liabilities have exceeded its assets under Generally Accepted Accounting Principles, the U.S. Treasury will contribute cash capital to the entity in an amount equal to the difference between liabilities and assets. Mortgage-related securities created by non-governmental issuers (such as financial institutions, and other secondary market issuers) may be supported by various forms of insurance or guarantees. Collateralized Mortgage Obligations -- The AllianceBernstein Balanced Fund may invest in collateralized mortgage obligations (''CMOs''). CMOs are debt obligations that were developed specifically to reallocate the various risks inherent in mortgage-backed securities across various bond classes or tranches. They are collateralized by underlying mortgage loans or pools of mortgage-pass-through securities. They can be issued by both agency (GNMA, FHLMC or FNMA) or non-agency issuers. CMOs are not mortgage pass-though securities. Rather, they are pay-through securities, i.e. securities backed by cash flow from the underlying mortgages. CMOs are typically structured into multiple classes, with each class bearing a different stated maturity and having different payment streams. Monthly payments of principal, including prepayments, are first returned to investors holding the shortest maturity class; investors holding longer maturity classes receive principal payments only after the shorter class or classes have been retired. Asset-Backed Securities -- The AllianceBernstein Balanced Fund may purchase asset-backed securities. The securitization techniques used to develop mortgage-related securities are also applied to a broad range of financial assets. Through the use of trusts and special purpose vehicles, various types of assets, including automobile loans and leases, credit card receivables, home equity loans, equipment leases and trade receivables, are securitized in structures similar to the structures used in mortgage securitizations. The AllianceBernstein Balanced Fund may invest in other asset-backed securities that may be developed in the future or as would be deemed appropriate. Non-U.S. Debt -- The AllianceBernstein Balanced Fund may invest in non-U.S. sovereign and corporate debt issued in U.S. Dollars. Hedging Transactions -- The AllianceBernstein Balanced Fund may engage in transactions which are designed to protect against potential adverse price movements in securities owned or intended to be purchased by the Fund. Zero-Coupon Bonds -- The AllianceBernstein Balanced Fund may invest in zero-coupon bonds. Such bonds may be issued directly by agencies and instrumentalities of the U.S. Government or by private corporations. Zero-coupon bonds may originate as such or may be created by stripping an outstanding bond. Zero-coupon bonds do not make regular interest payments. Instead, they are sold at a deep discount from their face value. Because a zero-coupon bond does not pay current income, its price can be very volatile when interest rates change. Repurchase Agreements -- Repurchase agreements are currently entered into with creditworthy counterparties including broker-dealers, member banks of the Federal Reserve System or ''primary dealers'' (as designated by the Federal Reserve Bank of New York) in U.S. Government securities. Repurchase agreements are often for short periods such as one day or a week, but may be longer. Investments may be made in repurchase agreements pertaining to the marketable obligations of, or marketable obligations guaranteed by, the United States Government, its agencies or instrumentalities. Foreign Currency Forward Contracts -- The AllianceBernstein Balanced Fund may enter into contracts for the purchase or sale of a specific foreign currency at a future date at a price set at the time of the contract. The Fund will enter into such forward contracts for hedging purposes only. PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS It is the policy of the Pooled Separate Accounts (the ''Separate Accounts'') to safeguard against misuse of their portfolio holdings information and to prevent the selective disclosure of such information. Each Separate Account will publicly disclose its holdings in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. The portfolio holdings information for the Separate Accounts including, among other things, the top ten holdings and complete portfolio holdings, is available on a monthly basis and generally can be obtained by contract holders/participants or their consultants, free of charge, 30 days after the month end by calling 1-866-642-3127. AXA Equitable has established this procedure to provide prompt portfolio holdings information so that contract-holders and their consultants can perform effective oversight of plan investments. On a case-by-case basis, AXA Equitable may approve the disclosure of non-public portfolio holdings and trading information to particular individuals or entities in appropriate circumstances. In all cases, the approval of release of non-public portfolio holdings or trading information will be conditioned on the obligation of the recipient not to trade on the non-public information. Neither AXA Equitable nor its investment advisor, AllianceBernstein L.P., discloses non-public portfolio holdings or portfolio trade information of any Separate Account to the media. In addition, with the approval of our investment officers, non-public portfolio holdings information may be provided as part of the legitimate business activities of each Separate Account to the following service providers and other organizations: auditors; the custodian; the accounting service provider, the administrator; the transfer agent; counsel to the Separate Accounts; regulatory authorities; pricing services; and financial printers. The entities to whom we or the investment advisor voluntarily provide holdings information, either by explicit agreement or by virtue of their respective duties to each Separate Account, are required to maintain the confidentiality of the information disclosed, including an obligation not to trade on non-public information. As of the date of this SAI, we have on-going arrangements to provide non-public portfolio holdings information to 7 the following service providers: JPMorgan Chase, State Street-Kansas City, PricewaterhouseCoopers LLP, and RR Donnelley. Each of these arrangements provides for on-going disclosure of current portfolio holdings information so that the entity can provide services to the Separate Accounts. These service providers do not provide any compensation to AXA Equitable, the Separate Accounts or any affiliates in return for the disclosure of non-public portfolio holdings information. Until particular portfolio holdings information has been released in regulatory filings or is otherwise available to contract holders and/or participants, and except with regard to the third parties described above, no such information may be provided to any party without the approval of our investment officers or the execution by such third party of an agreement containing appropriate confidentiality language which has been approved by our Legal Department. We will monitor and review any potential conflicts of interest between the contract holders/participants and AXA Equitable and its affiliates that may arise from potential release of non-public portfolio holdings information. We will not release portfolio holdings information unless it is determined that the disclosure is in the best interest of its contract holders/participants and there is a legitimate business purpose for such disclosure. No compensation is received by AXA Equitable or its affiliates or any other person in connection with the disclosure of portfolio holdings information. FUND TRANSACTIONS The AllianceBernstein Growth Equity, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are charged for securities brokers' commissions, transfer taxes and other fees relating to securities transactions. Transactions in equity securities for each of these Funds are executed primarily through brokers that receive a commission paid by the Fund. The brokers are selected by AllianceBernstein L.P. (''AllianceBernstein''). For 2015, 2014 and 2013, the AllianceBernstein Growth Equity Fund paid $1,633, $1,084 and $1,437, respectively, in brokerage commissions; the AllianceBernstein Mid Cap Growth Fund paid $14,620, $22,385 and $40,370, respectively, in brokerage commissions; and the AllianceBernstein Balanced Fund paid $14,114, $8,857 and $12,767, respectively, in brokerage commissions. AllianceBernstein seeks to obtain the best price and execution of all orders it places, considering all the circumstances. If transactions are executed in the over-the-counter market, they will deal with the principal market makers, unless more favorable prices or better execution is otherwise obtainable. There are occasions on which portfolio transactions for the Funds may be executed as part of concurrent authorizations to purchase or sell the same security for certain other accounts or clients advised by AllianceBernstein and AXA Equitable. These concurrent authorizations potentially can be either advantageous or disadvantageous to the Funds. When these concurrent authorizations occur, the objective is to allocate the executions among the Funds and the other accounts in a fair manner. Recently, the increasing number of low-cost automated order execution services have contributed to lower commission rates. These services, often referred to as ''low touch'' trading, take advantage of the electronic connectivity of market centers, eliminating the need for human intervention and thereby lowering the cost of execution. These services include: 1) direct market access (DMA) options, in which orders are placed directly with market centers, such as NASDAQ or Archipelago; 2) aggregators, which allow access to multiple markets simultaneously; and 3) algorithmic trading platforms, which use complex mathematical models to optimize trade routing and timing. AllianceBernstein also considers the amount and quality of securities research services provided by a broker. Typical research services include general economic information and analyses and specific information on and analyses of companies, industries and markets. Factors in evaluating research services include the diversity of sources used by the broker and the broker's experience, analytical ability, and professional stature. The receipt of research services from brokers tends to reduce the expenses in managing the Funds. This is taken into account when setting the expense charges. Brokers who provide research services may charge somewhat higher commissions than those who do not. However, AllianceBernstein selects only brokers whose commissions are believed to be reasonable in all the circumstances. Of the brokerage commissions paid by the AllianceBernstein Growth Equity, AllianceBernstein Mid/Cap Growth and AllianceBernstein Balanced Funds during 2015, $1,633, $14,620 and $14,114, respectively, were paid to brokers providing research services on transactions of $0, $14,379 and $10,046, respectively. AllianceBernstein periodically evaluates the services provided by brokers and prepares internal proposals for allocating among those various brokers business for all the accounts AllianceBernstein manages or advises. That evaluation involves consideration of the overall capacity of the broker to execute transactions, its financial condition, its past performance and the value of research services provided by the broker in servicing the various accounts advised or managed by AllianceBernstein. AllianceBernstein has no binding agreements with any firm as to the amount of brokerage business which the firm may expect to receive for research services or otherwise. There may, however, be understandings with certain firms that AllianceBernstein will continue to receive services from such firms only if such firms are allocated a certain amount of brokerage business. AllianceBernstein may try to allocate such amounts of business to such firms to the extent possible in accordance with the policies described above. Research information obtained by AllianceBernstein may be used in servicing all accounts under their management, including AXA Equitable's accounts. Similarly, not all research provided by a broker or dealer with which the Funds transact business will necessarily be used in connection with those Funds. Transactions for the Funds in the over-the-counter market are normally executed as principal transactions with a dealer that is a principal market-maker in the security, unless a better price or better execution can be obtained from another source. Under these circumstances, the Funds pay no commission. Similarly, portfolio transactions in money market and debt securities will normally be executed through dealers or underwriters under circumstances where the Fund pays no commission. When making securities transactions for Funds that do not involve paying a brokerage commission (such as the purchase of short-term debt securities), AllianceBernstein seeks to obtain prompt execution in an effective manner at the best price. Subject to this general objective, AllianceBernstein may give orders to dealers or underwriters who provide investment research. None of the Funds will pay 8 a higher price, however, and the fact that we or AllianceBernstein may benefit from such research is not considered in setting the expense charges. In addition to using brokers and dealers to execute portfolio securities transactions for accounts AllianceBernstein manages, we or AllianceBernstein may enter into other types of business transactions with brokers or dealers. These other transactions will be unrelated to allocation of the Funds' portfolio transactions. OTHER FUNDS. For those Funds that invest in corresponding Portfolios of AXA Premier VIP Trust and EQ Advisors Trust, see the statement of additional information for each Trust for information concerning the portfolio transactions of the Portfolios. INVESTMENT MANAGEMENT AND ACCOUNTING FEE The table below shows the investment management and financial accounting fees paid under the Program during each of the last three years. See ''Fee table'' section in the prospectus.
------------------------------------------------------------------------------- FUND 2015 2014 2013 ------------------------------------------------------------------------------- AllianceBernstein Growth Equity $110,381 $108,325 $ 97,325 ------------------------------------------------------------------------------- AllianceBernstein Mid Cap Growth $149,193 $161,230 $153,389 ------------------------------------------------------------------------------- AllianceBernstein Balanced $134,248 $143,899 $141,479 -------------------------------------------------------------------------------
9 PORTFOLIO MANAGERS' INFORMATION (ALLIANCEBERNSTEIN GROWTH EQUITY FUND, ALLIANCEBERNSTEIN MID CAP GROWTH FUND AND ALLIANCEBERNSTEIN BALANCED FUND) The tables and discussion below provide information with respect to the portfolio managers who are primarily responsible for the day-to-day management of each Fund. --------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN GROWTH EQUITY FUND, SEPARATE ACCOUNT NO. 4 (''FUND'') ALLIANCEBERNSTEIN L.P. (''ADVISER'') INFORMATION AS OF DECEMBER 31, 2015 ---------------------------------------------------------------------------------------------
(a)(2)For each person identified in column (a)(1), the number of other accounts of the Adviser managed by the person within each category below and the total assets in the accounts managed within each category below ----------------------------------------------------------------- Registered Investment Other Pooled Other Companies Investment Vehicles Accounts ----------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------ Judith A. DeVivo 34 27,756 46 6,392 65 21,309 ------------------------------------------------------------------------------------------------
(a)(3)For each of the categories in column (a)(2), the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account ------------------------------------------------------------------- Registered Investment Other Pooled Other Companies Investment Vehicles Accounts ------------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) -------------------------------------------------------------------------------------------------- Judith A. DeVivo -- -- -- -- 1 370 --------------------------------------------------------------------------------------------------
For a description of any material conflicts, please see ''Investment professional conflict of interest'' later in the SAI. For compensation information, please see ''AllianceBernstein's compensation program'' later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
-------------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 -------------------------------------------------------------------------------------------- Judith A. DeVivo X --------------------------------------------------------------------------------------------
The management of and investment decisions for the Fund's portfolio are made by AllianceBernstein's US Passive Team, which is responsible for management of all of AllianceBernstein's Passive accounts. JUDITH A. DEVIVO -- SENIOR PORTFOLIO MANAGER -- INDEX STRATEGIES Judith A. DeVivo is a Senior Vice President and Senior Portfolio Manager. She manages equity portfolios benchmarked to a variety of indices, including the S&P 500, S&P MidCap, MSCI EAFE, S&P SmallCap and Russell 2000, in addition to several customized accounts. DeVivo joined Alliance in 1971 and has held a variety of positions throughout the firm. Just prior to joining the Passive Management Group in 1984, she was head of portfolio administration for the firm. Location: New York ----------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN MID CAP GROWTH FUND, SEPARATE ACCOUNT NO. 3 (''FUND'') ALLIANCEBERNSTEIN L.P. (''ADVISER'') INFORMATION AS OF DECEMBER 31, 2015 -----------------------------------------------------------------------------------------
(a)(2)For each person identified in column (a)(1), the number of other accounts of the Advisor managed by the person within each category below and the total assets in the accounts managed within each category below ----------------------------------------------------------------- Registered Investment Other Pooled Other Companies Investment Vehicles Accounts ----------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the Fund prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) --------------------------------------------------------------------------------------------------- John H. Fogarty 24 7,145 16 3,411 3,429 2,124 ---------------------------------------------------------------------------------------------------
(a)(3)For each of the categories in column (a)(2), the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account ---------------------------------------------------------------- Registered Other Pooled Investment Investment Other Companies Vehicles Accounts ---------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the Fund prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) -------------------------------------------------------------------------------------------------- John H. Fogarty -- -- -- -- -- -- --------------------------------------------------------------------------------------------------
Note: $MM means millions For a description of any material conflicts, please see ''Investment professional conflict of interest disclosure'' later in the SAI. For compensation information, please see ''Portfolio manager compensation'' later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
----------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ----------------------------------------------------------------------------------------- John H. Fogarty X -----------------------------------------------------------------------------------------
10 The management of and investment decisions for the Fund's portfolio are made by Mr. John H. Fogarty. Mr. Fogarty relies heavily on the fundamental research efforts of the firm's extensive internal fundamental and quantitative research staff. JOHN H. FOGARTY, CFA -- TEAM LEADER -- US MID CAP FUNDAMENTAL GROWTH AND PORTFOLIO MANAGER -- US GROWTH EQUITIES John H. Fogarty has been Team Leader of US Mid Cap Fundamental Growth since late 2008. He joined the US Growth team in early 2009 as a Portfolio Manager for the US Growth and US Growth and Income services. In early 2012, Fogarty also became a Portfolio Manager for US Large Cap Growth. He rejoined the firm in 2007 as fundamental growth research analyst covering consumer-discretionary stocks in the US, having previously spent nearly three years as a hedge fund manager at Dialectic Capital Management and Vardon Partners. Fogarty began his career at Alliance Capital in 1988, performing quantitative research while attending Columbia. He started full time with the firm in 1992, joined the US Large Cap Growth team as a generalist and quantitative analyst in 1995, and became a US Large Cap Growth portfolio manager in 1997. Fogarty received his BA in history from Columbia University. He is a CFA charterholder. Location: New York -------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN BALANCED FUND, SEPARATE ACCOUNT NO. 10 (''FUND'') ALLIANCEBERNSTEIN L.P. (''ADVISER'') INFORMATION AS OF DECEMBER 31, 2015 --------------------------------------------------------------------------------------------------
(a)(2)For each person identified in column (a)(1), the number of other accounts of the Advisor managed by the person within each category below and the total assets in the accounts managed within each category below ----------------------------------------------------------------- Registered Other Pooled Investment Investment Other Companies Vehicles Accounts ----------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) ------------------------------------------------------------------------------------------------- Greg Wilensky 40 9,497 32 1,201 124 9,098 ------------------------------------------------------------------------------------------------- Joshua Lisser 34 27,823 46 6,392 65 21,309 -------------------------------------------------------------------------------------------------
(a)(3)For each of the categories in column (a)(2), the number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account ------------------------------------------------------------------- Registered Other Pooled Investment Investment Other Companies Vehicles Accounts ------------------------------------------------------------------- (a)(1) Portfolio manager(s) Number Total Number Total Number Total of the Adviser named of Assets of Assets of Assets in the prospectus Accounts ($MM) Accounts ($MM) Accounts ($MM) --------------------------------------------------------------------------------------------------- Greg Wilensky -- -- -- -- 3 570 --------------------------------------------------------------------------------------------------- Joshua Lisser -- -- -- -- 1 370 ---------------------------------------------------------------------------------------------------
For a description of any material conflicts, please see ''Investment professional conflict of interest'' later in the SAI. For compensation information, please see ''AllianceBernstein's compensation program'' later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
----------------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 ----------------------------------------------------------------------------------------------- Joshua Lisser X ----------------------------------------------------------------------------------------------- Greg Wilensky X -----------------------------------------------------------------------------------------------
AllianceBernstein Balanced Fund, Separate Account No. 10 (''Fund'') is managed by the following team members: JOSHUA LISSER -- CHIEF INVESTMENT OFFICER -- INDEX STRATEGIES Joshua Lisser is Chief Investment Officer of Index Strategies. He joined Alliance Capital in 1992 as a portfolio manager in the Index Strategies Group and developed the international and global risk-controlled equity services. Prior to that, Lisser was with Equitable Capital Management, specializing in derivative investment strategies. He holds a BA from the State University of New York, Binghamton, where he was elected a member of Phi Beta Kappa, and an MBA from New York University. Location: New York GREG WILENSKY, CFA -- DIRECTOR -- US MULTI-SECTOR FIXED INCOME; DIRECTOR -- TREASURY INFLATION-PROTECTED SECURITIES PORTFOLIOS; DIRECTOR -- STABLE VALUE INVESTMENTS Greg Wilensky is the lead member of the US Multi-Sector Fixed Income team. He has been responsible for the firm's US Treasury Inflation-Protected Securities (TIPS) portfolios since 1999 and the firm's stable value business since 1998. Wilensky is also the co-chair of the Securitized Asset and Liquid Markets Research Review meeting. Prior to joining AllianceBernstein in 1996, he was a treasury manager in the corporate finance group at AT&T. Wilensky earned a BS in business administration from Washington University and an MBA from the University of Chicago. He is a member of the New York Society of Security Analysts and a CFA charterholder. Location: New York SHAWN KEEGAN -- PORTFOLIO MANAGER Shawn Keegan is a member of the Credit portfolio management team focusing on US and global portfolios. He is also a member of the US Core Fixed Income and Canada Fixed Income portfolio management teams, for which he serves as credit specialist for multisector strategies. Keegan first joined AllianceBernstein in 1997 as a portfolio assistant. He later spent a year at Aladdin Capital as a trader before rejoining the firm in 2001 as part of the US Core Fixed Income team. Keegan holds a BS in finance from Siena College. Location: New York 11 SETH MASTERS -- CHIEF INVESTMENT OFFICER -- BERNSTEIN GLOBAL WEALTH MANAGEMENT Seth Masters is Chief Investment Officer of Bernstein Global Wealth Management. He heads the team that provides customized wealth-planning advice and manages the firm's private client portfolios. Masters was previously CIO for Asset Allocation, overseeing the firm's Dynamic Asset Allocation, Target Date, Target Risk and Indexed services. In June 2008, he was appointed head of AllianceBernstein's newly formed Defined Contribution business unit, which has since become an industry leader in custom target-date and lifetime income portfolios. Masters became CIO of Blend Strategies in 2002 and launched a range of style-blended services. From 1994 to 2002, he was CIO of Emerging Markets Value Equities. He joined Bernstein in 1991 as a research analyst covering global financial firms. Masters has frequently been cited in print and appeared on television programs dealing with investment strategy. He has published numerous articles, including "The Case for the 20,000 Dow"; "Long-Horizon Investment Planning in Globally Integrated Capital Markets"; "Is There a Better Way to Rebalance?"; and "The Future of Defined Contribution Plans." Masters worked as a senior associate at Booz, Allen & Hamilton from 1986 to 1990 and taught economics in China from 1983 to 1985. He holds an AB from Princeton University and an MPhil in economics from Oxford University. He is fluent in French and Mandarin Chinese. Location: New York JUDITH A. DEVIVO -- SENIOR PORTFOLIO MANAGER -- INDEX STRATEGIES Judith A. DeVivo is a Senior Vice President and Senior Portfolio Manager. She manages equity portfolios benchmarked to a variety of indices, including the S&P 500, S&P MidCap, MSCI EAFE, S&P SmallCap and Russell 2000, in addition to several customized accounts. DeVivo joined Alliance in 1971 and has held a variety of positions throughout the firm. Just prior to joining the Passive Management Group in 1984, she was head of portfolio administration for the firm. Location: New York MICHAEL S. CANTER -- DIRECTOR -- US MULTI-SECTOR AND SECURITIZED ASSETS Michael S. Canter joined AB in 2007 as a Senior Vice President and is currently Director of U.S. Multi-Sector and Securitized Assets. He is also the Chief Investment Officer of AB's Securitized Assets Fund and Recovery Asset Fund (ABRA-S), and the former CIO of the Legacy Securities (PPIP) fund. In addition, Canter is Head of the Securitized Assets Research Group, which is responsible for AB's investments in agency mortgage-backed securities, non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities and other asset-backed securities. He has particularly extensive expertise in RMBS, and in 2013 was called upon to give expert testimony to the U.S. Senate Committee on Banking, Housing,and Urban Affairs on how U.S. housing policy should be structured going forward. In 2015, the U.S. Department of the Treasury asked Canter to join a working group of industry leaders focused on structural changes to non-agency RMBS that could restart that market. Prior to joining AB, he was the President of ACE Principal Finance, a division of ACE Limited, from 2000 to 2006. There, he managed portfolios of credit default swaps,asset-backed securities, mortgage-backed securities and collateralized debt obligations. Canter holds a BA in math and economics from Northwestern University and a PhD in finance from the Columbia University Graduate School of Business. Location: New York BEN SKLAR -- PORTFOLIO MANAGER -- INDEX STRATEGIES Ben Sklar joined AllianceBernstein in 2006 as an associate portfolio manager in the Blend Strategies Group, managing global equity portfolios for institutional clients. He joined the Index Strategies team in 2009 as a Portfolio Manager, and has focused on developing a suite of custom index, structured equity and systematic volatility-management strategies. He holds a BA in English literature from Trinity College, Hartford, and an MBA in finance from New York University's Stern School of Business. Location: New York JOHN H. FOGARTY, CFA -- TEAM LEADER -- US MID CAP FUNDAMENTAL GROWTH AND PORTFOLIO MANAGER -- US GROWTH EQUITIES John H. Fogarty has been Team Leader of US Mid Cap Fundamental Growth since late 2008. He joined the US Growth team in early 2009 as a Portfolio Manager for the US Growth and US Growth and Income services. In early 2012, Fogarty also became a Portfolio Manager for US Large Cap Growth. He rejoined the firm in 2007 as fundamental growth research analyst covering consumer-discretionary stocks in the US, having previously spent nearly three years as a hedge fund manager at Dialectic Capital Management and Vardon Partners. Fogarty began his career at Alliance Capital in 1988, performing quantitative research while attending Columbia. He started full time with the firm in 1992, joined the US Large Cap Growth team as a generalist and quantitative analyst in 1995, and became a US Large Cap Growth portfolio manager in 1997. Fogarty received his BA in history from Columbia University. He is a CFA charterholder. Location: New York 12 INVESTMENT PROFESSIONAL CONFLICT OF INTEREST DISCLOSURE As an investment advisor and fiduciary, AllianceBernstein owes its clients and shareholders an undivided duty of loyalty. We recognize that conflicts of interest are inherent in our business and accordingly have developed policies and procedures (including oversight monitoring) reasonably designed to detect, manage and mitigate the effects of actual or potential conflicts of interest in the area of employee personal trading, managing multiple accounts for multiple clients, including AllianceBernstein Mutual Funds, and allocating investment opportunities. Investment professionals, including portfolio managers and research analysts, are subject to the above-mentioned policies and oversight monitoring to ensure that all clients are treated equitably. We place the interests of our clients first and expect all of our employees to meet their fiduciary duties. EMPLOYEE PERSONAL TRADING AllianceBernstein has adopted a Code of Business Conduct and Ethics that is designed to detect and prevent conflicts of interest when investment professionals and other personnel of AllianceBernstein own, buy or sell securities which may be owned by, or bought or sold for, clients. Personal securities transactions by an employee may raise a potential conflict of interest when an employee owns or trades in a security that is owned or considered for purchase or sale by a client, or recommended for purchase or sale by an employee to a client. Subject to the reporting requirements and other limitations of its Code of Business Conduct and Ethics, AllianceBernstein permits its employees to engage in personal securities transactions, and also allows them to acquire investments in the AllianceBernstein Mutual Funds through direct purchase and/or notionally in connection with deferred incentive compensation awards. AllianceBernstein's Code of Ethics and Business Conduct requires disclosure of all personal accounts and maintenance of brokerage accounts with designated broker-dealers approved by AllianceBernstein. The Code also requires preclearance of all securities transactions (except transactions in open-end mutual funds) and imposes a 90 day holding period for securities purchased by employees to discourage short-term trading. MANAGING MULTIPLE ACCOUNTS FOR MULTIPLE CLIENTS AllianceBernstein has compliance policies and oversight monitoring in place to address conflicts of interest relating to the management of multiple accounts for multiple clients. Conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because the investment professional may be unable to devote equal time and attention to each account. The investment professional or investment professional teams for each client may have responsibilities for managing all or a portion of the investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, such as hedge funds, pension plans, separate accounts, collective trusts and charitable foundations. Among other things, AllianceBernstein's policies and procedures provide for the prompt dissemination to investment professionals of initial or changed investment recommendations by analysts so that investment professionals are better able to develop investment strategies for all accounts they manage. In addition, investment decisions by investment professionals are reviewed for the purpose of maintaining uniformity among similar accounts and ensuring that accounts are treated equitably. No investment professional that manages client accounts carrying performance fees is compensated directly or specifically for the performance of those accounts. Investment professional compensation reflects a broad contribution in multiple dimensions to long-term investment success for our clients and is not tied specifically to the performance of any particular client's account, nor is it directly tied to the level or change in level of assets under management. ALLOCATING INVESTMENT OPPORTUNITIES AllianceBernstein has policies and procedures intended to address conflicts of interest relating to the allocation of investment opportunities. These policies and procedures are designed to ensure that information relevant to investment decisions is disseminated promptly within its portfolio management teams and investment opportunities are allocated equitably among different clients. The investment professionals at AllianceBernstein routinely are required to select and allocate investment opportunities among accounts. Portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar accounts, which minimizes the potential for conflicts of interest relating to the allocation of investment opportunities. Nevertheless, investment opportunities may be allocated differently among accounts due to the particular characteristics of an account, such as size of the account, cash position, tax status, risk tolerance and investment restrictions or for other reasons. AllianceBernstein's procedures are also designed to prevent potential conflicts of interest that may arise when AllianceBernstein has a particular financial incentive, such as a performance-based management fee, relating to an account. An investment professional may perceive that he or she has an incentive to devote more time to developing and analyzing investment strategies and opportunities or allocating securities preferentially to accounts for which AllianceBernstein could share in investment gains. To address these conflicts of interest, AllianceBernstein's policies and procedures require, among other things, the prompt dissemination to investment professionals of any initial or changed investment recommendations by analysts; the aggregation of orders to facilitate best execution for all accounts; price averaging for all aggregated orders; objective allocation for limited investment opportunities (e.g., on a rotational basis) to ensure fair and equitable allocation among accounts; and limitations on short sales of securities. These procedures also require documentation and review of justifications for any decisions to make investments only for select accounts or in a manner disproportionate to the size of the account. PORTFOLIO MANAGER COMPENSATION AllianceBernstein's compensation program for investment professionals is designed to be competitive and effective in order to attract and retain the highest caliber employees. The program is designed to reflect their ability to generate long-term investment success for our clients. Investment professionals do not receive any direct compensation based upon the investment returns of any individual client account, nor is compensation tied directly to the level or change in level of assets under management. Investment professionals' annual compensation is comprised of the following: (i)Fixed base salary: The base salary is a relatively low, fixed salary within a similar range for all investment professionals. The base 13 salary does not change significantly from year-to-year and hence, is not particularly sensitive to performance. (ii)Discretionary incentive compensation in the form of an annual cash bonus: AllianceBernstein's overall profitability determines the total amount of incentive compensation available to investment professionals. This portion of compensation is determined subjectively based on qualitative and quantitative factors. In evaluating this component of an investment professional's compensation, AllianceBernstein considers the contribution to his/ her team or discipline as it relates to that team's overall contribution to the long-term investment success, business results and strategy of AllianceBernstein. Quantitative factors considered include, among other things, relative investment performance (e.g., by comparison to competitor or peer group funds or similar styles of investments, and appropriate, broad-based or specific market indices), and consistency of performance. There are no specific formulas used to determine this part of an investment professional's compensation and the compensation is not tied to any predetermined or specified level of performance. AllianceBernstein also considers qualitative factors such as the complexity and risk of investment strategies involved in the style or type of assets managed by the investment professional; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of AllianceBernstein's leadership criteria. (iii)Discretionary incentive compensation in the form of awards under AllianceBernstein's Incentive Compensation Awards Plan (''deferred awards''): AllianceBernstein's overall profitability determines the total amount of deferred awards available to investment professionals. The deferred awards are allocated among investment professionals based on criteria similar to those used to determine the annual cash bonus. Deferred awards, which are in the form of AllianceBernstein's publicly traded units or deferred cash (the option to take an award in deferred cash is limited to a certain portion of the total award), vest over a four-year period. The awards are generally forfeited if the employee resigns to work for a competitor of AllianceBernstein. CONTRIBUTIONS UNDER ALLIANCEBERNSTEIN'S PROFIT SHARING/401(K) PLAN The contributions are based on AllianceBernstein's overall profitability. The amount and allocation of the contributions are determined at the sole discretion of AllianceBernstein. DISTRIBUTION OF THE CONTRACTS Employees of AXA Equitable perform all marketing and service functions under the contract. AXA Equitable pays no sales commissions with respect to units of interest in any of the Separate Accounts available under the contracts; however, incentive compensation that ranges from 0.40% to 2% of first-year plan contributions, plus $65 per plan sale is paid on a periodic basis to these AXA Equitable employees. No contribution-based or asset-based incentive compensation is awarded on existing plans in subsequent years. This compensation is not paid out of plan or participant funds, and has no effect on plan fees, charges and expenses. CUSTODIAN AND INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM JPMorgan Chase Bank, N.A. is the custodian for the shares of the Investment Trusts owned by Separate Accounts No. 3, 4 and 10. There is no custodian for the shares of the Investment Trusts owned by Separate Account No. 66. The financial statements of each Separate Account at December 31, 2015 and for each of the two years in the period ended December 31, 2015, and the consolidated financial statements of AXA Equitable at December 31, 2015 and 2014 and for each of the three years in the period ended December 31, 2015 are included in this SAI 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. 14 OUR MANAGEMENT We are managed by a Board of Directors which is elected by our shareholder(s). Our directors and certain of our executive officers and their principal occupations are as follows. Unless otherwise indicated, the following persons have been involved in the management of AXA Equitable and/or its affiliates in various executive positions during the last five years. DIRECTORS AND PRINCIPAL OFFICERS
------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Henri de Castries Director, MONY Life (July 2004 to AXA September 2013) and MONY America (since 25, Avenue Matignon July 2004); Director of AXA Equitable 75008 Paris, France (since September 1993); Chairman of the Board of AXA Financial (since April 1998); Vice Chairman (February 1996 to April 1998). Chairman and Chief Executive Officer of AXA since April 2010; prior thereto, Chairman of the Management Board (May 2000 to April 2010) and Chief Executive Officer of AXA (January 2000 to May 2002); Vice Chairman of AXA's Management Board (January 2000 to May 2000). Director or officer of various subsidiaries and affiliates of the AXA Group. Director of AllianceBernstein Corporation, the general partner of AllianceBernstein Holding and AllianceBernstein (October 1993 to July 2015). Director, Nestle S.A. since April 2012. Director of Donaldson, Lufkin and Jenrette ("DLJ") (July 1993 to November 2000). Director of HSBC Holdings PLC (since March 2016). ------------------------------------------------------------------------------- Denis Duverne Director, MONY Life (July 2004 to AXA September 2013) and MONY America (since 25, Avenue Matignon July 2004); Director of AXA Equitable 75008 Paris, France (since February 1998). Member of AXA's Board of Directors and Deputy Chief Executive Officer (since April 2010); prior thereto, Member of the AXA Management Board (February 2003 to April 2010) and Chief Financial Officer (May 2003 through December 2009), prior thereto, Executive Vice President, Finance, Control and Strategy, AXA (January 2000 to May 2003); prior thereto Senior Executive Vice President, International (US-UK-Benelux) AXA (January 1997 to January 2000); Member of the AXA Executive Committee (since January 2000); Director, AXA Financial (since November 2003), AllianceBernstein (since February 1996) and various AXA affiliated companies. Director of DLJ (February 1997 to November 2000). ------------------------------------------------------------------------------- Ramon de Oliveira Director of AXA Financial, AXA Investment Audit Practice, LLC Equitable and MONY America since May 70 South Fifth Street 2011. Director of MONY Life (May 2011 Park Ridge, NJ 07656 to September 2013). Since April 2010, Mr. de Oliveira has been a member of AXA's Board of Directors, where he serves on the Finance Committee (Chair) and Audit Committee, and from April 2009 to April 2010, he was a member AXA's Supervisory Board. He is currently the Managing Director of the consulting firm Investment Audit Practice, LLC, based in New York. From 2002 and 2006, Mr. de Oliveira was Adjunct Professor of Finance at Columbia University. Prior thereto, starting in 1977, he spent 24 years at JP Morgan & Co. where he was Chairman and Chief Executive Officer of JP Morgan Investment Management and was also a member of the firm's Management Committee since its inception in 1995. Upon the merger with Chase Manhattan Bank in 2001, Mr. de Oliveira was the only executive from JP Morgan & Co. asked to join the Executive Committee of the new firm with operating responsibilities. Mr. de Oliveira is currently the Chairman of the Investment Committee of Fonds de Dotation du Louvre (since 2009) and JACCAR Holdings SA (2011). Previously, he served as a Director of JP Morgan Suisse, American Century Company, Inc., SunGard Data Systems, The Hartford Insurance Company, Tattinger-Kobrand USA, Quilvest SA and L'Atelier. Mr. de Oliveira also formerly served as a Trustee and Chairman of the Investment Committee of The Kauffman Foundation, a Member of the Investment Committee of The Red Cross and the Chairman of the Board of Friends of Education. ------------------------------------------------------------------------------- Daniel G. Kaye Mr. Kaye has been a Director of AXA 767 Quail Run Equitable since September 2015. From Inverness, IL 60067 January 2013 to May 2014, Mr. Kaye served as Interim Chief Financial Officer and Treasurer of HealthEast Care System ("HealthEast"). Prior to joining HealthEast, Mr. Kaye spent 35 years with Ernst & Young LLP ("Ernst & Young") from which he retired in 2012. Throughout his time at Ernst & Young, where he was an audit partner for 25 years, Mr. Kaye enjoyed a track record of increasing leadership and responsibilities, including serving as the New England Managing Partner and the Midwest Managing Partner of Assurance. Mr. Kaye is a member of the Board of Directors of Ferrellgas Partners L.P. ("Ferrellgas"), where he serves on the Audit Committee and Corporate Governance and Nominating Committee (Chair). Mr. Kaye is a Certified Public Accountant and National Association of Corporate Directors (NACD) Board Leadership Fellow. Mr. Kaye is also a director of AXA Financial and MLOA since September 2015. -------------------------------------------------------------------------------
15 DIRECTORS AND PRINCIPAL OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Kristi A. Matus Ms. Matus has been a Director of AXA athenahealth Equitable since September 2015. 311 Arsenal Street Ms. Matus currently serves as Executive Watertown, MA 02472 Vice President and Chief Financial & Administrative Officer of athenahealth, Inc. ("athenahealth") since July 2014. Prior to joining athenahealth, Ms. Matus served as Executive Vice President and Head of Government Services of Aetna, Inc. ("Aetna") from February 2012 to July 2013. Prior to Aetna, she held several senior leadership roles at United Services Automobile Association ("USAA"), including Executive Vice President and Chief Financial Officer from 2008 to 2012. She began her career at the Aid Association for Lutherans, where she held various financial and operational roles for over a decade. Ms. Matus is also a director of AXA Financial and MLOA since September 2015. ------------------------------------------------------------------------------- Richard C. Vaughan Director of AXA Financial, AXA 764 Lynnmore Lane Equitable and MONY America since May Naples, FL 34108 2010. Director of MONY Life (May 2010 to September 2013). Executive Vice President and Chief Financial Officer of Lincoln Financial Group (1995 to May 2005); prior thereto, Chief Financial Officer (June 1992 to 1995); Senior Vice President and Chief Financial Officer of Employee Benefits Division (July 1990 to 1995). Member of the Board of Directors of MBIA, Inc, serving on the Audit Committee, The Executive Committee and the Finance and Risk Committee (Chair). ------------------------------------------------------------------------------- Barbara Fallon-Walsh Director of AXA Financial, AXA 1670 Stephens Drive Equitable and MONY America since May Wayne, PA 19087 2012. Director of MONY Life (May 2012 to September 2013). Ms. Fallon-Walsh was with The Vanguard Group, Inc. ("Vanguard") from 1995 until her retirement in 2012, where she held several executive positions, including Head of Institutional Retirement Plan Services from 2006 through 2011. Ms. Fallon-Walsh started her career at Security Pacific Corporation in 1979 and held a number of senior and executive positions with the company, which merged with Bank of America in 1992. From 1992 until joining Vanguard in 1995, Ms. Fallon-Walsh served as Executive Vice President, Bay Area Region and Los Angeles Gold Coast Region for Bank of America. Ms. Fallon-Walsh is currently a member of the Board of Directors of AXA Investment Managers S.A. ("AXA IM"), where she serves on the Audit and Risk Committee and the Remuneration Committee, and of AXA Rosenberg Group LLC. Ms. Fallon-Walsh has been a member of the Main Line Chamber of Commerce Board of Directors and Executive Committee, the Business and Advisory Council for Widener University and served on the Board of Trustees and Executive Committee of the Employee Benefit Research Institute in Washington, DC. ------------------------------------------------------------------------------- Bertram L. Scott Director of AXA Financial, AXA Novant Health, Inc. Equitable and MONY America since May 108 Providence Road 2012. Director of MONY Life (May 2012 Charlotte, NC 28207 to September 2013). Mr. Scott is Senior Vice President of population health management of Novant Health, Inc. since February 2015. From November 2012 to December 2014, he served as President and Chief Executive Officer of Affinity Health Plan. Prior to joining Affinity, Mr. Scott served as President, U.S. Commercial of CIGNA Corporation from June 2010 to December 2011, with executive responsibilities for U.S. products, marketing, national accounts, underwriting and for regional, individual, select and senior segments. Prior to joining CIGNA, Mr. Scott served as Executive Vice President and Chief Institutional Development & Sales Officer at TIAA-CREF, a leading provider of retirement services in the academic, research, medical and cultural fields. Mr. Scott is a member of the Board of Directors of Becton, Dickinson and Company, where he serves on the Audit Committee (Chair) as Chairman and Compensation and Benefits Committee. He is a Director of Lowe's Companies, Inc., where he serves on the Audit Committee and Governance Committee (since November 2015). ------------------------------------------------------------------------------- Lorie A. Slutsky Director of AXA Financial, Inc., AXA The New York Community Trust Equitable and MONY America (since 909 Third Avenue September 2006). Director of MONY Life New York, NY 10022 (September 2006 to September 2013). President of The New York Community Trust (since 1990). Prior thereto, Executive Vice President of The New York Community Trust (1987 to 1990). Director and Chairperson of Corporate Governance Committee and Member of Executive and Compensation Committees of AllianceBernstein Corporation (since July 2002); Former Director and Chairman of the Board of BoardSource, Former Trustee of The New School. Former Chairman of the Board of Governors of the Milano School of Management & Urban Policy (The New School). ------------------------------------------------------------------------------- Peter S. Kraus Director of AXA Financial, Inc., AXA AllianceBernstein Corporation Equitable and MONY America (since 1345 Avenue of the Americas February 2009). Director of MONY Life New York, NY 10105 (February 2009 to September 2013). Director, Chairman of the Board and Chief Executive Officer of AllianceBernstein Corporation (since December 2008). Prior thereto, Executive Vice President of Merrill Lynch & Co. (September 2008 to December 2008). Prior thereto, co-head, Investment Management Division of Goldman Sachs Group, Inc. (March 1986 to March 2008); also held the following positions: co-head of the Financial Institutions Group Tokyo (1990-1996). Currently, Director of Keewaydin Camp; Chairman of the Investment Committee of Trinity College; Chairman of the Board of California Institute of the Arts; Co-Chair of Friends of the Carnegie International and Lincoln Center. ------------------------------------------------------------------------------- 16
OFFICERS -- DIRECTORS ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Mark Pearson Director (since January 2011), President and Chief Executive Officer (since February 2011), AXA Financial. Chairman of the Board and Chief Executive Officer (since February 2011) and Director (since January 2011), AXA Equitable, AXA Equitable Financial Services, LLC and MONY America. Director, Chairman of the Board and Chief Executive Officer of MONY Life (February 2011 to September 2013). Member of AXA's Management and Executive Committees (since 2008). President and Chief Executive Officer of AXA Japan (2008 to January 2011). Director, Representative Executive Officer, President and Chief Executive Officer (June 2010 to February 2011), AXA Japan Holding Co., Ltd and AXA Life Insurance Co., Ltd. (concurrently); prior thereto, Representative Director, President and Chief Executive Officer (June 2008 to June 2010). Regional Chief Executive Officer, Life, AXA Asia Life and AXA Asia Pacific Holdings Limited (concurrently) (October 2001 to June 2008). Director and President, AXA America Holdings, Inc. (since January 2011). Director, AllianceBernstein Corporation (since February 2011). -------------------------------------------------------------------------------
OTHER OFFICERS ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Salvatore Piazzolla Senior Executive Vice President (since March 2011), AXA Financial, Inc. and MONY America. Senior Executive Vice President of MONY Life (March 2011 to September 2013). Senior Executive Director and Chief Human Resources Officer, AXA Equitable Financial Services, LLC and AXA Equitable (since December 2012). Prior thereto, Senior Executive Vice President AXA Equitable Financial Services, LLC and AXA Equitable (March 2011 to December 2012). Director of AXA Assicurazioni S.p.A. (since April 2013). Senior Executive Vice President, Head of Human Resources, UniCredit Group (2005 to February 2011). Vice President, Human Resources, General Electric (2001 to 2004). Director, MONY Assets Corp. (March 2011 to December 2011). ------------------------------------------------------------------------------- Andrea M. Nitzan Executive Director, Chief Accounting Officer (since December 2012) and Controller (since November 2014), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Senior Vice President (May 2008 to December 2012); Assistant Vice President and Chief of Staff (1996 to May 2008). Executive Vice President, Chief Accounting Officer and Controller (since November 2014), AXA Financial and MONY America (since September 2011). Executive Vice President andChief Accounting Officer, MONY Life (September 2011 to September 2013). ------------------------------------------------------------------------------- Dave S. Hattem Senior Executive Director and General Counsel (December 2012 to present); prior thereto, Senior Vice President (September 1999 to December 2012) and General Counsel (February 2010 to present) of AXA Equitable and AXA Equitable Financial Services, LLC; prior thereto, Senior Vice President (September 1999 to present) and Deputy General Counsel (May 2004 to February 2010), Associate General Counsel (September 1999 to May 2004). Senior Executive Vice President (since May 2013) and General Counsel (since May 2010), AXA Financial, Inc.; prior thereto, Executive Vice President May 2012 to May 2013) and General Counsel (since May 2010); Senior Vice President (September 2008 to May 2012) and General Counsel (May 2010 to present); Senior Vice President and Deputy General Counsel (September 2008 to May 2010). Senior Executive Director (since December 2012) and General Counsel (since February 2010), MONY America; prior thereto, Executive Vice President (May 2012 to December 2012) and General Counsel (since February 2010). Executive Senior Vice President and Deputy General Counsel of MONY Life (December 2012 to September 2013; held previous positions). Executive Vice President (since July 2012) and General Counsel (since December 2010), AXA Equitable Life and Annuity Company. Executive Vice President (since June 2012) and General Counsel (since December 2010), MONY Financial Services, Inc. ------------------------------------------------------------------------------- Karen Field Hazin Lead Director (since December 2012), Secretary (since June 2005) and Associate General Counsel (since June 2005), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Vice President, Secretary and Associate General Counsel (June 2005 to December 2012), Counsel (April 2005 to June 2005), Assistant Vice President and Counsel (December 2001 to June 2003), Counsel (December 1996 to December 2001). Vice President, Secretary and Associate General Counsel, MONY America (since June 2005). Vice President, Secretary and Associate General Counsel (since June 2005), AXA Financial, Inc. Vice President and Secretary (since September 2005), AXA America Holdings, Inc. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Equitable Life and Annuity Company. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Distribution Holding Corporation. Vice President, Secretary and Associate General Counsel, MONY Life (June 2005 to September 2013). -------------------------------------------------------------------------------
17
OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Anthony F. Recine Senior Vice President, Chief Compliance Officer (February 2005 to present) and Deputy General Counsel (February 2010 to present) of MONY America. Managing Director, Chief Compliance Officer and Deputy General Counsel (since December 2012), AXA Equitable and AXA Equitable Financial Services, LLC; prior thereto, Senior Vice President (February 2005 to December 2012), Chief Compliance Officer (February 2005 to present), and Deputy General Counsel (February 2010 to present); prior thereto, Senior Vice President, Chief Compliance Officer and Associate General Counsel (February 2005 to February 2010). Senior Vice President, Chief Compliance Officer and Deputy General Counsel, AXA Financial (since May 2010). Vice President, Deputy General Counsel and Chief Litigation Counsel (2000 to February 2005) of The MONY Group; prior thereto, Vice President and Chief Litigation Counsel (1990 to 2000). Senior Vice President, Chief Compliance Officer (February 2005 to September 2013) and Deputy General Counsel (February 2010 to September 2013) of MONY Life. ------------------------------------------------------------------------------- Nicholas B. Lane Senior Executive Director (since December 2012) and Head of U.S. Life and Retirement (since November 2013), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Senior Executive Director and President, Retirement Savings (December 2012 to November 2013); prior thereto, Senior Executive Vice President (February 2011 to December 2012) and President, Retirement Savings (February 2011 to November 2013). Senior Executive Vice President (since February 2011) and Head of U.S. Life and Retirement (since November 2013), AXA Financial and MONY America; prior thereto, Senior Executive Vice President and President, Retirement Savings (February 2011 to November 2013). Senior Executive Vice President and President, Retirement Savings, MONY Life (February 2011 to September 2013). Director and Member of the Audit Committee (since February 2011), U.S. Financial Life Insurance Company and AXA Equitable Life and Annuity Company. Director and Chief Retirement Savings Officer (since February 2011), AXA Advisors, LLC. Director and Member of the Audit Committee, AXA Corporate Solutions Life Reinsurance Company (November 2008 to March 2011). Director, Chairman of the Board, President, Chief Executive Officer and Chief Retirement Savings Officer (since February 2011), AXA Distributors, LLC. Director, AXA Distribution Holding Corporation (since October 2013). Head of Global Strategy & Business Support and Development (June 2008 to January 2011), AXA SA. Senior Vice President of Retail Distribution Business Platforms (February 2006 to June 2008), AXA Equitable; prior thereto, Vice President (May 2005 to February 2006). ------------------------------------------------------------------------------- Anders B. Malmstrom Senior Executive Vice President and Chief Financial Officer (since June 2012), AXA Financial, Inc. and MONY America. Senior Executive Director and Chief Financial Officer, AXA Equitable (since December 2012); prior thereto, Senior Executive Vice President and Chief Financial Officer (June 2012 to December 2012). Director (since July 2012), Senior Executive Director and Chief Financial Officer (since June 2012), AXA Equitable Financial Services, LLC. Director (since July 2012), 1740 Advisers, Inc. Director, Chairman of the Board, President and Chief Executive Officer (since July 2012), ACMC, LLC. Director (July 2012), AXA Advisors, LLC. Director and Senior Executive Vice President (since July 2012), AXA America Holdings, Inc. Director and Chairman of the Board; Member of the Audit Committee (since July 2012), AXA Corporate Solutions Life Reinsurance Company. Director, Chairman of the Board and Chief Executive Officer (since July 2012), AXA Distribution Holding Corporation. Director (since July 2012) and Chairman of the Board (since August 2012); Member of the Audit Committee (Chairman) (since July), AXA Equitable Life and Annuity Company. Director and Chairman of the Board (since July 2012), AXA RE Arizona Company. Director, Chairman of the Board and Chief Executive Officer (since July 2012), Financial Marketing Agency, Inc. Director (since July 2012), Chairman of the Board, President and Chief Executive Officer (since August 2012), MONY Financial Services, Inc. Director (since July 2012), MONY Financial Resources of the Americas Limited. Director (since July 2012), MONY International Holdings, LLC. Director (since December 2013), 1740 Advisors, Inc. Director (since September 2012), MONY Life Insurance Company of the Americas, Ltd. Director and Chairman of the Board; Member of the Audit Committee (Chairman) (since July 2012), U.S. Financial Life Insurance Company. Senior Executive Vice President and Chief Financial Officer, MONY Life (June 2012 to September 2013). Director and Chairman of the Board, CS Life Re Company (since November 2014). Director, AXA Strategic Ventures US, LLC (since December 2014). -------------------------------------------------------------------------------
18
OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Joshua E. Braverman Senior Executive Director and Treasurer (since December 2012), AXA Equitable and AXA Equitable Financial Services; prior thereto, Executive Vice President and Treasurer (September 2012 to December 2012), Senior Vice President, Head of Derivatives (September 2009 to September 2012). Senior Executive Vice President (since May 2013) and Treasurer (since September 2012), AXA Financial, Inc. and MONY America; prior thereto, Executive Vice President and Treasurer (September 2012 to May 2013). Executive Vice President and Treasurer, MONY Life (September 2012 to September 2013). Director, Executive Vice President, Chief Financial Officer and Treasurer and Member of the Audit Committee (since September 2012), AXA Equitable Life and Annuity Company. Director, Executive Vice President, Chief Financial Officer and Treasurer and Member of the Audit Committee (since September 2012), U.S. Financial Life Insurance Company. Director, President, Chief Executive Officer and Chief Investment Officer and Chairman of the Audit Committee (since September 2012), AXA Corporate Solutions Life Reinsurance Company. Director and Chairman (since September 2012), Equitable Casualty Insurance Company. Director, President and Chief Executive Officer (since September 2012), AXA RE Arizona Company. Executive Vice President and Treasurer (since September 2012), AXA America Holdings, Inc. Director, President and Chief Financial Officer (since September 2012), AXA Distribution Holding Corporation. Director and President, MONY Life Insurance Company of the Americas Limited (since September 2012). Director, President and Treasurer (since September 2012), MONY International Holdings, LLC. Director, President and Treasurer (since September 2012), MBT, Ltd. Director, Chairman, President and Treasurer (since September 2012), MONY Financial Resources of the Americas Limited. Director, Executive Vice President, Chief Financial Officer and Treasurer (since September 2012), MONY Financial Services, Inc. Executive Vice President and Treasurer (since September 2012), 1740 Advisors, Inc. Director, President, Chief Executive Officer and Chief Financial Officer, CS Life Re Company (since November 2014). Senior Executive Vice President and Treasurer, AXA Strategic Ventures US, LLC (since December 2014). ------------------------------------------------------------------------------- Priscilla Sims Brown Senior Executive Director and Chief Marketing Officer, AXA Equitable and AXA Equitable Financial Services since September 2014. Senior Executive Vice President and Chief Marketing Officer, AXA Financial, Inc. and MONY Life since September 2014. Senior Vice President and Chief Marketing and Development Officer, AmeriHealth Caritas (April 2013 to August 2014). Head of Marketing, Sun Life Financial (January 2009 to March 2013). Served in numerous roles at Lincoln Financial Group, the most recent being Chief Marketing Officer (February 1991 to December 2008). ------------------------------------------------------------------------------- Michael B. Healy Executive Director (since December 2012) and Chief Information Officer (since May 2011), AXA Equitable and AXA Equitable Financial Services; prior thereto, (Executive Vice President (May 2011 to December 2012) and Chief Information Officer (since May 2011), Senior Vice President and Chief Information Officer (September 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Executive Vice President and Chief Information Officer (since May 2011), AXA Financial and MONY America; prior thereto, Senior Vice President and Chief Information Officer (November 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Executive Vice President and Chief Information Officer (May 2011 to September 2013), MONY Life; prior thereto, Senior Vice President and Chief Information Officer (November 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Senior Vice President, Program Office at Marsh & McLennan Companies Inc. (April 2003 to August 2009). ------------------------------------------------------------------------------- Keith E. Floman Managing Director and Chief Actuary, AXA Equitable and AXA Equitable Financial Services (since December 2012); prior thereto, Senior Vice President and Actuary (November 2008 to December 2012), Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, MONY America (since November 2008); prior thereto, Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, MONY Life (November 2008 to September 2013); prior thereto, Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, AXA Equitable Life and Annuity Company (since December 2008). Senior Vice President and Actuary (since January 2009) and Appointed Actuary (since May 2008), U.S. Financial Life Insurance Company. Senior Vice President, AXA Corporate Solutions Life Reinsurance Company (since July 2007). Director, Executive Vice President and Chief Financial Officer, AXA RE Arizona Company (since May 2013). Director, Financial Marketing Agency, Inc. (since May 2013). ------------------------------------------------------------------------------- Sharon A. Ritchey Senior Executive Director and Chief Operating Officer, AXA Equitable and AXA Equitable Financial Services (since November 2013). Senior Executive Vice President and Chief Operating Officer, AXA Financial and MONY America (since November 2013). Director of AXA Advisors, LLC and AXA Business Services Private Limited. Executive Vice President, Retirement Plans Group, The Hartford Financial (January 1999 to January 2013). -------------------------------------------------------------------------------
19
OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Kevin Molloy Senior Executive Vice President, AXA Financial and MONY Life (since May 2013). Senior Executive Director, AXA Equitable and AXA Equitable Financial Services (since May 2013). Director and Vice Chairman of the Board, AXA Advisors, LLC (since September 2013). Director, AXA Network, LLC (since October 2013). Director and Member of Audit Committee, AXA Corporate Solutions Life Reinsurance Company (since March 2011). Senior Vice President, Business Support and Development, AXA (June 2010 to May 2013). Vice President of Distribution Finance (April 2007 to June 2010), Vice President and head of North American Investor Relations (November 2003 to April 2007), Director of Corporate Finance (1999 to November 2003), AXA Equitable. ------------------------------------------------------------------------------- Jurgen Schwering Senior Vice President and Chief Risk Officer, AXA Financial, Inc. and MONY America (since November 2015); prior thereto, Senior Executive Vice President and Chief Risk Officer (February 2014 to November 2015). Managing Director and Chief Risk Officer, AXA Equitable and AXA Equitable Financial Services (since November 2015); prior thereto, Senior Executive Director and Chief Risk Officer (February 2014 to November 2015). Member of the Board and Head of the Health Insurance, AXA Konzern AG (October 2012 to February 2014); prior thereto, Member of the Board and Chief Investment Officer (January 2007 to October 2012); Chief Investment Officer (March 2004 to December 2006). Head of Investment Strategy (March 2000 to March 2004, Allianz Lebensversicherungs-AG; prior thereto, Executive Assistant for the Chief Financial Officer (September 1997 to March 2000). -------------------------------------------------------------------------------
20 FINANCIAL STATEMENTS INDEX The financial statements of AXA Equitable included in this Statement of Additional Information should be considered only as bearing upon the ability of AXA Equitable to meet its obligations under the group annuity contract. They should not be considered as bearing upon the investment experience of the Funds. The financial statements of Separate Accounts No. 3 (Pooled), 4 (Pooled), 10 (Pooled) and 66 reflect applicable fees, charges and other expenses under the Program as in effect during the periods covered, as well as the charges against the accounts made in accordance with the terms of all other contracts participating in the respective separate accounts, if applicable.
----------------------------------------------------------------------------------------------------------------------------- PAGE ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NOS.10 (POOLED), Report of Independent Registered Public Accounting Firm......................... FSA-1 4 (POOLED), 3 (POOLED) AND 66 (POOLED) ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 10 (POOLED) Statement of Assets and Liabilities, December 31, 2015.......................... FSA-2 --------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2015.................... FSA-3 --------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014................................................ FSA-4 --------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015..................................... FSA-5 ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 4 (POOLED) Statement of Assets and Liabilities, December 31, 2015.......................... FSA-16 --------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2015.................... FSA-17 --------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014................................................ FSA-18 --------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015..................................... FSA-19 ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 3 (POOLED) Statement of Assets and Liabilities, December 31, 2015.......................... FSA-28 --------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2015................... FSA-29 --------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014................................................ FSA-30 --------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015..................................... FSA-31 ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 66 (POOLED) Statements of Assets and Liabilities, December 31, 2015......................... FSA-34 --------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2015................... FSA-44 --------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014................................................ FSA-52 ----------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NOS. 10 (POOLED), 4 Notes to Financial Statements................................................... FSA-67 (POOLED), 3 (POOLED) AND 66 (POOLED) ----------------------------------------------------------------------------------------------------------------------------- AXA EQUITABLE LIFE INSURANCE Reports of Independent Registered Public Accounting Firm........................ F-1 COMPANY --------------------------------------------------------------------------------------- Consolidated Balance Sheets as of December 31, 2015 and 2014.................... F-2 --------------------------------------------------------------------------------------- Consolidated Statements of Earnings (Loss), Years Ended December 31, 2015, 2014 and 2013.......................................... F-3 --------------------------------------------------------------------------------------- Consolidated and Comprehensive Income (Loss), Years Ended December 31, 2015, 2014 and 2013.......................................... F-4 --------------------------------------------------------------------------------------- Consolidated Statements of Equity, Years Ended December 31, 2015, 2014 and 2013.......................................... F-5 --------------------------------------------------------------------------------------- Consolidated Statements of Cash Flows, Years Ended December 31, 2015, 2014 and 2013.......................................... F-6 --------------------------------------------------------------------------------------- Notes to Consolidated Financial Statements...................................... F-8 ----------------------------------------------------------------------------------------------------------------------------- The financial statements of the Funds reflect fees, charges and other expenses of the Separate Accounts applicable to contracts under Members Retirement Program as in effect during the periods covered, as well as the expense charges made in accordance with the terms of all other contracts participating in the respective Funds. -----------------------------------------------------------------------------------------------------------------------------
21 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of AXA Equitable Life Insurance Company and Contractowners of Separate Accounts No. 10, 4, 3 and 66 of AXA Equitable Life Insurance Company: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled), and each of the separate Variable Investment Options of Separate Account No. 66, of AXA Equitable Life Insurance Company ("AXA Equitable") at December 31, 2015, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of AXA Equitable's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian, brokers and the underlying funds' transfer agents, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP New York, New York April 18, 2016 FSA-1 #799591 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $14,613,441)....................... $16,060,635 Long-term debt securities -- at fair value (amortized cost: $10,302,025). 10,373,405 Short-term debt securities -- at fair value (amortized cost: $540,018)... 540,018 Rights -- at fair value (cost: $1,772)................................... 883 Cash....................................................................... 379,751 Foreign cash (cost: $29,841)............................................... 29,713 Interest and dividends receivable.......................................... 91,653 Receivable for investment securities sold.................................. 423,231 Fees receivable from Contractowners........................................ 43,876 ----------- Total assets............................................................ 27,943,165 ----------- LIABILITIES: Payable for investments securities purchased............................... 822,793 Due to AXA Equitable's General Account..................................... 105,001 Accrued custody and bank fees.............................................. 18,784 Administrative fees payable................................................ 20 Asset management fee payable............................................... 54,413 Accrued expenses........................................................... 30,395 ----------- Total liabilities....................................................... 1,031,406 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION............... $26,911,759 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 1 $32,725.90 RIA........... 6,855 293.64 MRP........... 351,471 70.27 EPP........... 612 309.98
----------- The accompanying notes are an integral part of these financial statements. FSA-2 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends (net of foreign taxes withheld of $25,012)..................................................... $ 472,140 Interest................................................................................................. 253,037 ----------- Total investment income................................................................................. 725,177 ----------- EXPENSES (NOTE 6): Investment management fees............................................................................... (146,208) Custody and bank fees.................................................................................... (18,222) Other operating expenses................................................................................. (21,989) ----------- Total expenses.......................................................................................... (186,419) ----------- NET INVESTMENT INCOME...................................................................................... 538,758 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (NOTE 2): Net realized gain from investments and foreign currency transactions..................................... 1,240,726 Change in unrealized depreciation of investments and foreign currency denominated assets and liabilities. (1,710,724) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS................... (469,998) ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS...................................................... $ 68,760 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-3 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income.................................................................... $ 538,758 $ 673,536 Net realized gain on investments and foreign currency transactions....................... 1,240,726 1,683,031 Net change in unrealized depreciation of investments and foreign currency denominated assets and liabilities................................................................. (1,710,724) (972,838) ----------- ----------- Net increase in assets attributable to operations...................................... 68,760 1,383,729 ----------- ----------- FROM CONTRACTOWNER TRANSACTIONS: Contributions............................................................................ 1,797,162 2,258,398 Withdrawals.............................................................................. (5,422,991) (5,034,197) Asset management fees (Note 6)........................................................... (94,628) (100,493) Administrative fees (Note 6)............................................................. (243,348) (291,604) ----------- ----------- Net decrease in net assets attributable to contractowner transactions.................. (3,963,805) (3,167,896) ----------- ----------- DECREASE IN NET ASSETS.................................................................... (3,895,045) (1,784,167) NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD....... 30,806,804 32,590,971 ----------- ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD............. $26,911,759 $30,806,804 =========== ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-4 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------- COMMON STOCKS -- 59.7% FINANCIALS -- 11.7% BANKS -- 4.9% Bank Leumi Le-Israel BM/(a)/.............. 5,260 $ 18,238 Bank of America Corp...................... 6,960 117,137 Barclays PLC.............................. 9,820 31,602 BNP Paribas SA............................ 540 30,539 Canadian Imperial Bank of Commerce/Canada. 390 25,602 Citigroup, Inc............................ 2,200 113,850 Comerica, Inc............................. 970 40,575 Commonwealth Bank of Australia............ 990 61,110 Fifth Third Bancorp....................... 1,730 34,773 HSBC Holdings PLC......................... 8,880 70,086 ING Groep NV.............................. 1,980 26,778 Intesa Sanpaolo SpA....................... 7,260 24,101 JPMorgan Chase & Co....................... 2,185 144,276 KeyCorp................................... 3,360 44,319 Mitsubishi UFJ Financial Group, Inc....... 9,200 56,940 Mizuho Financial Group, Inc............... 10,000 19,983 PNC Financial Services Group, Inc. (The).. 330 31,452 Raiffeisen Bank International AG/(a)/..... 1,850 27,101 Resona Holdings, Inc...................... 7,300 35,421 Royal Bank of Scotland Group PLC/(a)/..... 3,960 17,599 Societe Generale SA....................... 830 38,232 Sumitomo Mitsui Financial Group, Inc...... 800 30,168 UniCredit SpA............................. 4,180 23,100 Wells Fargo & Co.......................... 2,950 160,362 Westpac Banking Corp...................... 1,945 47,072 Yamaguchi Financial Group, Inc............ 3,000 35,512 ---------- 1,305,928 ---------- CAPITAL MARKETS -- 0.8% 3i Group PLC.............................. 8,850 62,679 Credit Suisse Group AG/(a)/............... 710 15,304 Deutsche Bank AG.......................... 1,740 42,576 Franklin Resources, Inc................... 880 32,401 Legg Mason, Inc........................... 860 33,738 Morgan Stanley............................ 720 22,903 ---------- 209,601 ---------- CONSUMER FINANCE -- 0.7% American Express Co....................... 876 60,926 Capital One Financial Corp................ 350 25,263 Discover Financial Services............... 830 44,505 Synchrony Financial/(a)/.................. 1,620 49,264 ---------- 179,958 ---------- DIVERSIFIED FINANCIAL SERVICES -- 0.8% Berkshire Hathaway, Inc. -- Class B/(a)/.. 630 83,185 Industrivarden AB -- Class C.............. 2,000 34,260 Investment AB Kinnevik -- Class B......... 1,040 32,075 Investor AB -- Class B.................... 1,400 51,516 ORIX Corp................................. 1,600 22,427 ---------- 223,463 ---------- INSURANCE -- 3.3% Aegon NV.................................. 6,160 34,823 Ageas..................................... 1,050 48,714 Allianz SE................................ 480 85,279 American International Group, Inc......... 1,000 61,970 AMP Ltd................................... 10,290 43,288
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ INSURANCE (CONTINUED) Assicurazioni Generali SpA.......................... 1,920 $ 35,058 Axis Capital Holdings Ltd........................... 580 32,608 Chubb Corp. (The)................................... 410 54,382 CNP Assurances...................................... 2,140 28,855 FNF Group........................................... 910 31,550 Hannover Rueck SE................................... 420 48,202 Hartford Financial Services Group, Inc. (The)....... 1,030 44,764 Lincoln National Corp............................... 830 41,716 Mapfre SA........................................... 9,320 23,320 MetLife, Inc........................................ 760 36,640 Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (REG)..................................... 305 61,145 Old Mutual PLC...................................... 11,510 30,273 SCOR SE............................................. 1,100 41,142 Travelers Cos., Inc. (The).......................... 394 44,467 Unum Group.......................................... 1,380 45,940 Zurich Insurance Group AG/(a)/...................... 90 23,135 ---------- 897,271 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) -- 0.7% American Capital Agency Corp........................ 1,940 33,640 GPT Group (The)..................................... 13,230 45,746 H&R Real Estate Investment Trust.................... 2,650 38,249 Land Securities Group PLC........................... 1,650 28,597 Realty Income Corp.................................. 600 30,978 VEREIT, Inc......................................... 3,010 23,839 ---------- 201,049 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.5% CA Immobilien Anlagen AG/(a)/....................... 1,320 24,132 Daito Trust Construction Co., Ltd................... 200 23,083 Kerry Properties Ltd................................ 6,000 16,328 Sino Land Co., Ltd.................................. 18,000 26,221 Swire Pacific Ltd. -- Class A....................... 3,500 39,095 ---------- 128,859 ---------- Total Financials.................................... 3,146,129 ---------- CONSUMER DISCRETIONARY -- 9.2% AUTO COMPONENTS -- 0.5% Cie Generale des Etablissements Michelin -- Class B. 380 36,154 Magna International, Inc. (New York) -- Class A..... 530 21,497 Magna International, Inc. -- Class A................ 600 24,240 Sumitomo Electric Industries Ltd.................... 2,400 33,862 Toyoda Gosei Co., Ltd............................... 1,200 27,238 ---------- 142,991 ---------- AUTOMOBILES -- 1.1% Daihatsu Motor Co., Ltd............................. 2,000 26,958 Daimler AG.......................................... 680 57,307 Fuji Heavy Industries Ltd........................... 800 32,930 Nissan Motor Co., Ltd............................... 2,700 28,248 Peugeot SA/(a)/..................................... 1,820 31,889 Renault SA.......................................... 290 29,016 Toyota Motor Corp................................... 400 24,611 Volkswagen AG....................................... 200 30,916 Volkswagen AG (Preference Shares)................... 210 30,511 ---------- 292,386 ---------- HOTELS, RESTAURANTS & LEISURE -- 1.0% Carnival Corp....................................... 1,110 60,473 Darden Restaurants, Inc............................. 690 43,911
FSA-5 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (CONTINUED) Hilton Worldwide Holdings, Inc............ 1,900 $ 40,660 McDonald's Corp........................... 342 40,404 Starbucks Corp............................ 900 54,027 Yum! Brands, Inc.......................... 560 40,908 -------- 280,383 -------- HOUSEHOLD DURABLES -- 0.9% Berkeley Group Holdings PLC............... 670 36,416 Iida Group Holdings Co., Ltd.............. 1,900 35,185 Leggett & Platt, Inc...................... 970 40,759 Sekisui Chemical Co., Ltd................. 3,000 39,136 Sekisui House Ltd......................... 2,000 33,600 Sony Corp................................. 1,400 34,379 Toll Brothers, Inc./(a)/.................. 560 18,648 -------- 238,123 -------- INTERNET & CATALOG RETAIL -- 0.9% Amazon.com, Inc./(a)/..................... 190 128,419 Expedia, Inc.............................. 410 50,963 Priceline Group, Inc. (The)/(a)/.......... 40 50,998 -------- 230,380 -------- LEISURE PRODUCTS -- 0.2% Bandai Namco Holdings, Inc................ 1,300 27,443 Hasbro, Inc............................... 270 18,187 -------- 45,630 -------- MEDIA -- 2.0% Cablevision Systems Corp. -- Class A...... 730 23,287 CBS Corp. -- Class B...................... 990 46,659 Comcast Corp. -- Class A.................. 2,040 115,117 Interpublic Group of Cos., Inc. (The)..... 1,610 37,481 Sky PLC................................... 2,240 36,712 Time Warner Cable, Inc. -- Class A........ 240 44,542 Time Warner, Inc.......................... 660 42,682 Twenty-First Century Fox, Inc. -- Class A. 1,940 52,690 Twenty-First Century Fox, Inc. -- Class B. 1,480 40,300 Viacom, Inc. -- Class B................... 450 18,522 Walt Disney Co. (The)..................... 470 49,388 Wolters Kluwer NV......................... 790 26,520 -------- 533,900 -------- MULTILINE RETAIL -- 0.3% Kohl's Corp............................... 820 39,056 Macy's, Inc............................... 1,210 42,326 -------- 81,382 -------- SPECIALTY RETAIL -- 1.5% Advance Auto Parts, Inc................... 220 33,112 Bed Bath & Beyond, Inc./(a)/.............. 690 33,292 GameStop Corp. -- Class A................. 990 27,760 Home Depot, Inc. (The).................... 740 97,865 Industria de Diseno Textil SA............. 920 31,593 JB Hi-Fi Ltd.............................. 3,700 52,280 Lowe's Cos., Inc.......................... 390 29,656 Staples, Inc.............................. 4,630 43,846 TJX Cos., Inc. (The)...................... 720 51,055 -------- 400,459 -------- TEXTILES, APPAREL & LUXURY GOODS -- 0.8% Coach, Inc................................ 1,410 46,150 LVMH Moet Hennessy Louis Vuitton SE....... 420 65,942
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (CONTINUED) NIKE, Inc. -- Class B................. 860 $ 53,750 Pandora A/S........................... 220 27,728 Swatch Group AG (The)................. 440 29,731 ---------- 223,301 ---------- Total Consumer Discretionary.......... 2,468,935 ---------- INFORMATION TECHNOLOGY -- 8.7% COMMUNICATIONS EQUIPMENT -- 0.5% Cisco Systems, Inc.................... 2,980 80,922 F5 Networks, Inc./(a)/................ 560 54,298 ---------- 135,220 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% Corning, Inc.......................... 2,340 42,775 Hitachi Ltd........................... 6,000 33,970 ---------- 76,745 ---------- INTERNET SOFTWARE & SERVICES -- 1.7% Alphabet, Inc. -- Class A/(a)/........ 185 143,932 Alphabet, Inc. -- Class C/(a)/........ 195 147,982 eBay, Inc./(a)/....................... 1,880 51,662 Facebook, Inc. -- Class A/(a)/........ 1,070 111,986 ---------- 455,562 ---------- IT SERVICES -- 1.9% Accenture PLC -- Class A.............. 200 20,900 Atos SE............................... 370 31,049 Cap Gemini SA......................... 210 19,477 Fujitsu Ltd........................... 8,000 39,896 International Business Machines Corp.. 730 100,462 MasterCard, Inc. -- Class A........... 760 73,994 Teradata Corp./(a)/................... 1,250 33,025 Total System Services, Inc............ 590 29,382 Vantiv, Inc. -- Class A/(a)/.......... 800 37,936 Visa, Inc. -- Class A................. 580 44,979 Western Union Co. (The) -- Class W.... 2,240 40,118 Xerox Corp............................ 5,020 53,363 ---------- 524,581 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.0% Applied Materials, Inc................ 1,150 21,471 Intel Corp............................ 3,240 111,618 Marvell Technology Group Ltd.......... 4,310 38,014 Micron Technology, Inc./(a)/.......... 2,620 37,099 Siltronic AG/(a)/..................... 660 16,196 Texas Instruments, Inc................ 1,030 56,454 ---------- 280,852 ---------- SOFTWARE -- 1.4% Microsoft Corp........................ 4,400 244,112 Oracle Corp........................... 1,650 60,275 salesforce.com, Inc./(a)/............. 530 41,552 VMware, Inc. -- Class A/(a)/.......... 530 29,982 ---------- 375,921 ---------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 1.9% Apple, Inc............................ 3,297 347,042 BlackBerry Ltd./(a)/.................. 3,150 29,117 FUJIFILM Holdings Corp................ 1,200 50,037 Hewlett Packard Enterprise Co......... 1,690 25,688
FSA-6 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS (CONTINUED) HP, Inc.................................. 1,690 $ 20,010 Western Digital Corp..................... 460 27,623 ---------- 499,517 ---------- Total Information Technology............. 2,348,398 ---------- HEALTH CARE -- 8.0% BIOTECHNOLOGY -- 1.5% AbbVie, Inc.............................. 1,260 74,642 Amgen, Inc............................... 410 66,555 Biogen, Inc./(a)/........................ 170 52,080 Celgene Corp./(a)/....................... 470 56,287 Gilead Sciences, Inc..................... 1,140 115,357 Medivation, Inc./(a)/.................... 960 46,406 ---------- 411,327 ---------- HEALTH CARE EQUIPMENT & SUPPLIES -- 0.6% Baxter International, Inc................ 1,190 45,399 Cochlear Ltd............................. 520 35,928 CR Bard, Inc............................. 220 41,677 Intuitive Surgical, Inc./(a)/............ 40 21,846 ResMed, Inc.............................. 470 25,234 ---------- 170,084 ---------- HEALTH CARE PROVIDERS & SERVICES -- 1.7% Aetna, Inc............................... 510 55,141 Alfresa Holdings Corp.................... 1,300 25,654 AmerisourceBergen Corp. -- Class A....... 510 52,892 Anthem, Inc.............................. 420 58,565 Express Scripts Holding Co./(a)/......... 650 56,816 HCA Holdings, Inc./(a)/.................. 320 21,642 McKesson Corp............................ 170 33,529 Medipal Holdings Corp.................... 2,200 37,466 Quest Diagnostics, Inc................... 690 49,087 Suzuken Co., Ltd./Aichi Japan............ 1,210 45,944 UnitedHealth Group, Inc.................. 150 17,646 ---------- 454,382 ---------- PHARMACEUTICALS -- 4.2% Bayer AG................................. 300 37,738 Bristol-Myers Squibb Co.................. 330 22,701 Eli Lilly & Co........................... 370 31,176 GlaxoSmithKline PLC...................... 4,120 83,190 Johnson & Johnson........................ 1,790 183,869 Merck & Co., Inc......................... 1,334 70,462 Novartis AG (REG)........................ 1,600 137,713 Novo Nordisk A/S -- Class B.............. 1,820 105,335 Otsuka Holdings Co., Ltd................. 1,000 35,499 Pfizer, Inc.............................. 4,174 134,737 Roche Holding AG......................... 565 156,660 Sanofi................................... 680 57,927 Teva Pharmaceutical Industries Ltd....... 970 63,283 ---------- 1,120,290 ---------- Total Health Care........................ 2,156,083 ---------- CONSUMER STAPLES -- 6.5% BEVERAGES -- 1.4% Anheuser-Busch InBev SA/NV............... 470 58,466 Carlsberg A/S -- Class B................. 300 26,567 Coca-Cola Co. (The)...................... 1,160 49,834
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------------- BEVERAGES (CONTINUED) Coca-Cola Enterprises, Inc........................ 850 $ 41,854 Heineken Holding NV............................... 600 46,173 Heineken NV....................................... 590 50,257 Molson Coors Brewing Co. -- Class B............... 570 53,534 PepsiCo, Inc...................................... 380 37,970 SABMiller PLC..................................... 310 18,542 ---------- 383,197 ---------- FOOD & STAPLES RETAILING -- 1.1% CVS Health Corp................................... 310 30,309 Delhaize Group.................................... 170 16,539 Empire Co., Ltd. -- Class A....................... 1,950 36,133 Koninklijke Ahold NV.............................. 2,613 55,094 Sysco Corp........................................ 810 33,210 Wal-Mart Stores, Inc.............................. 1,310 80,303 WM Morrison Supermarkets PLC...................... 17,290 37,665 ---------- 289,253 ---------- FOOD PRODUCTS -- 1.8% Archer-Daniels-Midland Co......................... 1,190 43,649 Bunge Ltd......................................... 650 44,382 Campbell Soup Co.................................. 890 46,770 ConAgra Foods, Inc................................ 860 36,258 General Mills, Inc................................ 1,010 58,237 Nestle SA (REG)................................... 2,225 165,272 NH Foods Ltd...................................... 2,000 39,167 Yamazaki Baking Co., Ltd.......................... 2,000 44,934 ---------- 478,669 ---------- HOUSEHOLD PRODUCTS -- 0.5% Clorox Co. (The).................................. 410 52,000 Colgate-Palmolive Co.............................. 1,140 75,947 ---------- 127,947 ---------- PERSONAL PRODUCTS -- 0.4% L'Oreal SA........................................ 320 53,803 Unilever PLC...................................... 1,520 65,183 ---------- 118,986 ---------- TOBACCO -- 1.3% Altria Group, Inc................................. 1,180 68,688 British American Tobacco PLC...................... 2,120 117,708 Imperial Tobacco Group PLC........................ 850 44,886 Philip Morris International, Inc.................. 1,020 89,668 Swedish Match AB.................................. 600 21,230 ---------- 342,180 ---------- Total Consumer Staples............................ 1,740,232 ---------- INDUSTRIALS -- 5.7% AEROSPACE & DEFENSE -- 1.2% Boeing Co. (The).................................. 260 37,593 General Dynamics Corp............................. 340 46,702 L-3 Communications Holdings, Inc.................. 470 56,170 Lockheed Martin Corp.............................. 180 39,087 Northrop Grumman Corp............................. 210 39,650 Precision Castparts Corp.......................... 180 41,762 Spirit AeroSystems Holdings, Inc. -- Class A/(a)/. 780 39,055 Thales SA......................................... 370 27,683 ---------- 327,702 ----------
FSA-7 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- AIR FREIGHT & LOGISTICS -- 0.2% CH Robinson Worldwide, Inc............... 720 $ 44,655 United Parcel Service, Inc. -- Class B... 140 13,472 ---------- 58,127 ---------- AIRLINES -- 0.5% Delta Air Lines, Inc..................... 1,150 58,293 JetBlue Airways Corp./(a)/............... 1,820 41,223 Qantas Airways Ltd./(a)/................. 9,803 29,011 ---------- 128,527 ---------- BUILDING PRODUCTS -- 0.1% Asahi Glass Co., Ltd..................... 6,000 34,345 ---------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% Cintas Corp.............................. 500 45,525 Dai Nippon Printing Co., Ltd............. 4,000 39,522 Toppan Printing Co., Ltd................. 5,000 46,027 ---------- 131,074 ---------- CONSTRUCTION & ENGINEERING -- 0.2% Jacobs Engineering Group, Inc./(a)/...... 1,030 43,208 ---------- ELECTRICAL EQUIPMENT -- 0.3% Fuji Electric Co., Ltd................... 9,000 37,714 OSRAM Licht AG........................... 600 25,120 Vestas Wind Systems A/S.................. 480 33,510 ---------- 96,344 ---------- INDUSTRIAL CONGLOMERATES -- 0.8% CK Hutchison Holdings Ltd................ 2,000 26,884 General Electric Co...................... 4,170 129,895 NWS Holdings Ltd......................... 16,000 23,884 Siemens AG (REG)......................... 250 24,409 ---------- 205,072 ---------- MACHINERY -- 0.5% Dover Corp............................... 430 26,364 Hitachi Construction Machinery Co., Ltd.. 2,800 43,510 Metso Oyj................................ 1,180 26,421 Mitsubishi Heavy Industries Ltd.......... 7,000 30,582 ---------- 126,877 ---------- PROFESSIONAL SERVICES -- 0.5% Adecco SA/(a)/........................... 350 23,969 Equifax, Inc............................. 460 51,230 Experian PLC............................. 2,260 39,936 Randstad Holding NV...................... 280 17,429 ---------- 132,564 ---------- ROAD & RAIL -- 0.7% Canadian National Railway Co............. 550 30,626 Central Japan Railway Co................. 500 88,693 Nippon Express Co., Ltd.................. 5,000 23,477 West Japan Railway Co.................... 500 34,533 ---------- 177,329 ---------- TRADING COMPANIES & DISTRIBUTORS -- 0.1% ITOCHU Corp.............................. 3,500 41,365 ---------- TRANSPORTATION INFRASTRUCTURE -- 0.1% Auckland International Airport Ltd....... 4,590 18,024 ---------- Total Industrials........................ 1,520,558 ----------
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------ ENERGY -- 3.2% ENERGY EQUIPMENT & SERVICES -- 0.2% Schlumberger Ltd........................ 640 $ 44,640 Tenaris SA.............................. 1,740 20,596 -------- 65,236 -------- OIL, GAS & CONSUMABLE FUELS -- 3.0% BP PLC.................................. 12,190 63,335 Chevron Corp............................ 1,050 94,458 Eni SpA................................. 3,830 56,883 Exxon Mobil Corp........................ 2,082 162,292 HollyFrontier Corp...................... 410 16,355 JX Holdings, Inc........................ 5,800 24,323 Kinder Morgan, Inc./DE.................. 3,940 58,785 Phillips 66............................. 330 26,994 Repsol SA............................... 1,770 19,478 Royal Dutch Shell PLC -- Class A........ 2,300 52,082 Royal Dutch Shell PLC -- Class B........ 1,140 25,976 Tesoro Corp............................. 260 27,396 TOTAL SA................................ 1,510 67,667 Valero Energy Corp...................... 1,050 74,246 Woodside Petroleum Ltd.................. 1,500 31,202 -------- 801,472 -------- Total Energy............................ 866,708 -------- MATERIALS -- 2.8% CHEMICALS -- 2.0% Asahi Kasei Corp........................ 5,000 33,782 BASF SE................................. 955 73,366 Daicel Corp............................. 1,600 23,791 Dow Chemical Co. (The).................. 1,260 64,865 EI du Pont de Nemours & Co.............. 440 29,304 JSR Corp................................ 1,400 21,800 LyondellBasell Industries NV -- Class A. 700 60,830 Mitsubishi Chemical Holdings Corp....... 7,000 44,376 Mitsubishi Gas Chemical Co., Inc........ 7,000 35,765 Novozymes A/S -- Class B................ 600 28,717 Potash Corp. of Saskatchewan, Inc....... 900 15,355 Sherwin-Williams Co. (The).............. 200 51,920 Yara International ASA.................. 920 39,569 -------- 523,440 -------- CONSTRUCTION MATERIALS -- 0.3% CRH PLC................................. 1,710 49,294 Fletcher Building Ltd................... 7,830 38,981 -------- 88,275 -------- CONTAINERS & PACKAGING -- 0.2% Amcor Ltd./Australia.................... 3,080 29,876 Sealed Air Corp......................... 740 33,004 -------- 62,880 -------- PAPER & FOREST PRODUCTS -- 0.3% UPM-Kymmene Oyj......................... 4,040 74,973 -------- Total Materials......................... 749,568 -------- UTILITIES -- 2.0% ELECTRIC UTILITIES -- 1.5% Chubu Electric Power Co., Inc........... 1,600 21,892 EDP -- Energias de Portugal SA.......... 12,740 45,888
FSA-8 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- ELECTRIC UTILITIES (CONTINUED) Enel SpA.................................. 5,870 $ 24,604 Entergy Corp.............................. 470 32,129 Exelon Corp............................... 1,700 47,209 Iberdrola SA.............................. 9,610 68,097 Mighty River Power Ltd.................... 8,390 15,935 NextEra Energy, Inc....................... 660 68,567 Southern Co. (The)........................ 1,490 69,717 ----------- 394,038 ----------- GAS UTILITIES -- 0.1% Gas Natural SDG SA........................ 1,760 35,875 ----------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.1% NRG Energy, Inc........................... 3,560 41,901 ----------- MULTI-UTILITIES -- 0.3% Consolidated Edison, Inc.................. 750 48,203 Public Service Enterprise Group, Inc...... 680 26,309 ----------- 74,512 ----------- Total Utilities........................... 546,326 ----------- TELECOMMUNICATION SERVICES -- 1.9% DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.6% AT&T, Inc................................. 2,938 101,097 Nippon Telegraph & Telephone Corp......... 1,700 67,600 Orange SA................................. 1,740 29,091 Proximus SADP............................. 690 22,444 Spark New Zealand Ltd..................... 19,600 44,175 Telecom Italia SpA (ordinary Shares)/(a)/. 23,200 29,389 Telecom Italia SpA (Savings Shares)....... 18,800 19,287 TeliaSonera AB............................ 7,210 35,850 TELUS Corp................................ 1,010 27,818 Verizon Communications, Inc............... 1,030 47,607 ----------- 424,358 ----------- WIRELESS TELECOMMUNICATION SERVICES -- 0.3% Vodafone Group PLC........................ 28,790 93,340 ----------- Total Telecommunication Services.......... 517,698 ----------- Total Common Stocks (cost $14,613,441)....................... 16,060,635 ----------- PRINCIPAL AMOUNT (000) ----------------------------------------------------------------- LONG-TERM DEBT SECURITIES -- 38.5% GOVERNMENTS - TREASURIES -- 13.5% UNITED STATES -- 13.5% U.S. Treasury Bonds 2.75%, 8/15/42........................... $ 10 9,558 2.875%, 5/15/43......................... 10 9,750 3.00%, 5/15/42-11/15/45................. 281 280,318 3.125%, 2/15/43......................... 35 35,872 3.625%, 8/15/43-2/15/44................. 78 88,173 4.375%, 2/15/38......................... 29 36,597 4.625%, 2/15/40......................... 164 213,616 6.25%, 5/15/30.......................... 38 54,664
PRINCIPAL AMOUNT (000) U.S. $ VALUE -------------------------------------------------------------------------- UNITED STATES (CONTINUED) U.S. Treasury Notes 0.50%, 3/31/17.................................... $ 220 $ 218,995 0.625%, 5/31/17-9/30/17.......................... 638 634,759 0.875%, 6/15/17.................................. 394 393,569 1.25%, 4/30/19................................... 150 149,045 1.375%, 8/31/20-10/31/20......................... 690 678,396 1.50%, 8/31/18-5/31/20........................... 280 278,827 1.625%, 6/30/20-7/31/20.......................... 103 102,061 1.75%, 9/30/19-12/31/20.......................... 354 355,183 2.50%, 8/15/23................................... 76 77,974 ---------- Total Governments -- Treasuries.................... 3,617,357 ---------- CORPORATES - INVESTMENT GRADE -- 10.9%(B) INDUSTRIAL -- 6.6% BASIC -- 0.4% Barrick Gold Corp. 4.10%, 5/01/23.................................... 2 1,716 Dow Chemical Co. (The) 7.375%, 11/01/29.................................. 5 6,175 8.55%, 5/15/19................................... 12 14,144 Eastman Chemical Co. 3.80%, 3/15/25.................................... 10 9,684 Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas, Inc. 6.50%, 11/15/20................................... 8 5,160 Freeport-McMoRan, Inc. 2.375%, 3/15/18................................... 16 12,480 Glencore Funding LLC 4.125%, 5/30/23................................... 4 2,950 International Paper Co. 3.80%, 1/15/26.................................... 7 6,897 5.15%, 5/15/46................................... 5 4,757 Mosaic Co. (The) 5.625%, 11/15/43.................................. 10 9,585 Rio Tinto Finance USA PLC 2.25%, 12/14/18................................... 30 29,252 Vale Overseas Ltd. 6.875%, 11/21/36.................................. 5 3,495 ---------- 106,295 ---------- CAPITAL GOODS -- 0.4% BAE Systems Holdings, Inc. 3.80%, 10/07/24................................... 27 26,848 General Electric Capital Corp. 4.65%, 10/17/21................................... 13 14,393 Series G 5.625%, 5/01/18.................................. 15 16,359 General Electric Co. Series B 4.10%, 12/15/22/(c)/............................. 7 6,983 Owens Corning 6.50%, 12/01/16/(d)/.............................. 2 2,058 Republic Services, Inc. 5.50%, 9/15/19.................................... 20 22,004 Yamana Gold, Inc. 4.95%, 7/15/24.................................... 32 27,135 ---------- 115,780 ----------
FSA-9 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------------------ COMMUNICATIONS - MEDIA -- 1.4% 21st Century Fox America, Inc. 3.00%, 9/15/22.................................. $ 55 $ 54,198 4.50%, 2/15/21................................. 25 26,901 6.55%, 3/15/33................................. 5 5,698 CBS Corp. 3.50%, 1/15/25.................................. 10 9,533 5.75%, 4/15/20................................. 30 33,299 Comcast Cable Communications Holdings, Inc. 9.455%, 11/15/22................................ 15 20,710 Cox Communications, Inc. 2.95%, 6/30/23.................................. 11 9,690 Discovery Communications LLC 3.45%, 3/15/25.................................. 14 12,674 McGraw Hill Financial, Inc. 4.40%, 2/15/26.................................. 26 26,602 RELX Capital, Inc. 8.625%, 1/15/19................................. 27 31,490 TCI Communications, Inc. 7.875%, 2/15/26................................. 25 33,787 Time Warner Cable, Inc. 4.125%, 2/15/21................................. 30 30,632 4.50%, 9/15/42................................. 10 7,848 Time Warner, Inc. 3.55%, 6/01/24.................................. 19 18,644 4.00%, 1/15/22................................. 9 9,324 4.70%, 1/15/21................................. 10 10,763 7.625%, 4/15/31................................ 6 7,424 Viacom, Inc. 3.875%, 12/15/21................................ 10 9,831 3.875%, 4/01/24................................ 16 14,993 5.625%, 9/15/19................................ 5 5,399 -------- 379,440 -------- COMMUNICATIONS - TELECOMMUNICATIONS -- 0.8% American Tower Corp. 5.05%, 9/01/20.................................. 30 32,387 AT&T, Inc. 3.40%, 5/15/25.................................. 45 43,249 4.45%, 5/15/21................................. 17 18,094 British Telecommunications PLC 9.625%, 12/15/30................................ 12 17,510 DIRECTV Holdings LLC/DIRECTV Financing Co., Inc. 3.80%, 3/15/22.................................. 3 3,019 4.45%, 4/01/24................................. 10 10,271 4.60%, 2/15/21................................. 15 15,888 Telefonica Emisiones SAU 5.462%, 2/16/21................................. 10 11,176 Verizon Communications, Inc. 4.272%, 1/15/36................................. 23 20,764 6.55%, 9/15/43................................. 30 35,616 -------- 207,974 -------- CONSUMER CYCLICAL - AUTOMOTIVE -- 0.2% General Motors Financial Co., Inc. 3.10%, 1/15/19.................................. 25 24,964 3.25%, 5/15/18................................. 2 2,010 4.00%, 1/15/25................................. 5 4,744 4.30%, 7/13/25................................. 5 4,848 -------- 36,566 --------
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------- CONSUMER CYCLICAL - RETAILERS -- 0.3% CVS Health Corp. 3.875%, 7/20/25...................... $ 25 $ 25,515 Kohl's Corp. 4.25%, 7/17/25....................... 27 26,329 Macy's Retail Holdings, Inc. 3.875%, 1/15/22...................... 25 24,617 -------- 76,461 -------- CONSUMER NON-CYCLICAL -- 1.3% Actavis Funding SCS 3.80%, 3/15/25....................... 26 25,867 3.85%, 6/15/24...................... 9 9,016 Agilent Technologies, Inc. 5.00%, 7/15/20....................... 7 7,520 Ahold Finance USA LLC 6.875%, 5/01/29...................... 24 29,419 Altria Group, Inc. 2.625%, 1/14/20...................... 30 30,056 AstraZeneca PLC 6.45%, 9/15/37....................... 10 12,646 Becton Dickinson and Co. 3.734%, 12/15/24..................... 13 13,111 Biogen, Inc. 4.05%, 9/15/25....................... 24 24,109 Bunge Ltd. Finance Corp. 8.50%, 6/15/19....................... 1 1,157 Gilead Sciences, Inc. 3.65%, 3/01/26....................... 23 23,195 Laboratory Corp. of America Holdings 3.60%, 2/01/25....................... 10 9,649 Medtronic, Inc. 3.50%, 3/15/25....................... 30 30,245 Mylan, Inc. 2.60%, 6/24/18....................... 32 31,754 Reynolds American, Inc. 3.25%, 11/01/22...................... 16 15,820 5.85%, 8/15/45...................... 12 13,341 Thermo Fisher Scientific, Inc. 4.15%, 2/01/24....................... 13 13,503 Tyson Foods, Inc. 2.65%, 8/15/19....................... 10 10,006 3.95%, 8/15/24...................... 22 22,588 4.50%, 6/15/22...................... 30 31,931 -------- 354,933 -------- ENERGY -- 1.4% Diamond Offshore Drilling, Inc. 4.875%, 11/01/43..................... 11 6,678 Encana Corp. 3.90%, 11/15/21...................... 10 8,254 Energy Transfer Partners LP 6.125%, 2/15/17...................... 10 10,215 6.625%, 10/15/36.................... 5 4,330 6.70%, 7/01/18...................... 15 15,773 EnLink Midstream Partners LP 5.05%, 4/01/45....................... 21 13,022 Enterprise Products Operating LLC 3.35%, 3/15/23....................... 20 18,085
FSA-10 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------------------- ENERGY (CONTINUED) 3.70%, 2/15/26.................................. $ 27 $ 24,219 5.20%, 9/01/20.................................. 20 20,976 Halliburton Co. 5.00%, 11/15/45.................................. 25 24,714 Kinder Morgan Energy Partners LP 2.65%, 2/01/19................................... 8 7,396 3.95%, 9/01/22.................................. 36 31,339 4.15%, 3/01/22.................................. 11 9,774 6.85%, 2/15/20.................................. 9 9,309 Marathon Petroleum Corp. 5.125%, 3/01/21.................................. 11 11,545 Noble Energy, Inc. 3.90%, 11/15/24.................................. 21 18,690 8.25%, 3/01/19.................................. 29 32,433 Phillips 66 4.30%, 4/01/22................................... 21 21,605 Plains All American Pipeline LP/PAA Finance Corp. 3.60%, 11/01/24.................................. 28 22,463 TransCanada PipeLines Ltd. 6.35%, 5/15/67................................... 28 21,140 Valero Energy Corp. 6.125%, 2/01/20.................................. 17 18,747 Williams Partners LP 3.90%, 1/15/25................................... 6 4,509 4.125%, 11/15/20................................ 16 14,284 ---------- 369,500 ---------- TECHNOLOGY -- 0.4% Hewlett Packard Enterprise Co. 4.90%, 10/15/25.................................. 25 24,515 HP Enterprise Services LLC 7.45%, 10/15/29.................................. 5 5,799 HP, Inc. 3.75%, 12/01/20.................................. 3 2,977 Intel Corp. 4.80%, 10/01/41.................................. 15 15,637 KLA-Tencor Corp. 4.65%, 11/01/24.................................. 22 22,135 Motorola Solutions, Inc. 3.50%, 3/01/23................................... 14 12,281 Seagate HDD Cayman 4.75%, 1/01/25................................... 12 9,993 Total System Services, Inc. 2.375%, 6/01/18.................................. 14 13,855 3.75%, 6/01/23.................................. 8 7,762 ---------- 114,954 ---------- 1,761,903 ---------- FINANCIAL INSTITUTIONS -- 3.7% BANKING -- 2.5% Bank of America Corp. 3.30%, 1/11/23................................... 38 37,404 3.875%, 8/01/25................................. 40 40,605 4.20%, 8/26/24.................................. 17 16,867 5.00%, 5/13/21.................................. 10 10,926 Series L 5.65%, 5/01/18.................................. 50 53,765
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------- BANKING (CONTINUED) Capital One Financial Corp. 4.75%, 7/15/21............................... $ 25 $ 27,079 Compass Bank 5.50%, 4/01/20............................... 35 37,286 Fifth Third Bancorp 3.50%, 3/15/22............................... 12 12,161 Goldman Sachs Group, Inc. (The) 3.85%, 7/08/24............................... 10 10,205 5.75%, 1/24/22.............................. 55 62,547 Series D 6.00%, 6/15/20.............................. 15 16,952 Series G 7.50%, 2/15/19.............................. 35 40,049 HSBC Holdings PLC 4.00%, 3/30/22............................... 30 31,493 5.10%, 4/05/21.............................. 20 22,235 JPMorgan Chase & Co. 3.625%, 5/13/24.............................. 32 32,474 4.40%, 7/22/20.............................. 20 21,348 4.50%, 1/24/22.............................. 20 21,572 Lloyds Bank PLC 4.20%, 3/28/17............................... 30 30,922 Morgan Stanley 3.75%, 2/25/23............................... 20 20,485 4.75%, 3/22/17.............................. 40 41,433 Series G 5.50%, 7/28/21.............................. 38 42,574 Murray Street Investment Trust I 4.647%, 3/09/17.............................. 3 3,091 PNC Funding Corp. 5.125%, 2/08/20.............................. 15 16,496 State Street Corp. 3.70%, 11/20/23.............................. 15 15,608 -------- 665,577 -------- BROKERAGE -- 0.1% Nomura Holdings, Inc. 2.00%, 9/13/16............................... 33 33,132 -------- INSURANCE -- 1.0% Allied World Assurance Co. Holdings Ltd. 7.50%, 8/01/16............................... 13 13,431 American International Group, Inc. 4.875%, 6/01/22.............................. 45 48,597 Anthem, Inc. 3.30%, 1/15/23............................... 11 10,690 Guardian Life Insurance Co. of America (The) 7.375%, 9/30/39.............................. 10 12,741 Hartford Financial Services Group, Inc. (The) 5.125%, 4/15/22.............................. 15 16,473 6.10%, 10/01/41............................. 18 20,893 Lincoln National Corp. 8.75%, 7/01/19............................... 9 10,809 Massachusetts Mutual Life Insurance Co. 8.875%, 6/01/39.............................. 10 14,521 MetLife, Inc. 7.717%, 2/15/19.............................. 22 25,560 Nationwide Mutual Insurance Co. 9.375%, 8/15/39.............................. 25 36,286
FSA-11 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------- INSURANCE (CONTINUED) Prudential Financial, Inc. 4.50%, 11/15/20...................... $ 19 $ 20,391 5.625%, 6/15/43..................... 15 15,338 XLIT Ltd. 6.25%, 5/15/27....................... 19 21,857 ---------- 267,587 ---------- REITS -- 0.1% Host Hotels & Resorts LP Series D 3.75%, 10/15/23...................... 3 2,893 Welltower, Inc. 5.25%, 1/15/22....................... 30 32,448 ---------- 35,341 ---------- 1,001,637 ---------- UTILITY -- 0.6% ELECTRIC -- 0.3% Berkshire Hathaway Energy Co. 6.125%, 4/01/36...................... 25 29,154 Constellation Energy Group, Inc. 5.15%, 12/01/20...................... 6 6,514 Exelon Corp. 5.10%, 6/15/45....................... 10 10,073 Exelon Generation Co. LLC 4.25%, 6/15/22....................... 13 13,171 Pacific Gas & Electric Co. 4.50%, 12/15/41...................... 10 9,967 TECO Finance, Inc. 4.00%, 3/15/16....................... 10 10,048 5.15%, 3/15/20...................... 10 10,738 ---------- 89,665 ---------- NATURAL GAS -- 0.3% Engie SA 1.625%, 10/10/17..................... 11 10,941 NiSource Finance Corp. 6.80%, 1/15/19....................... 30 33,655 Sempra Energy 4.05%, 12/01/23...................... 35 36,053 ---------- 80,649 ---------- 170,314 ---------- Total Corporates -- Investment Grade.. 2,933,854 ---------- MORTGAGE PASS-THROUGHS -- 8.8% AGENCY FIXED RATE 30-YEAR -- 8.0% Federal Home Loan Mortgage Corp. Gold 4.00%, 1/01/45...................... 113 120,326 Series 2007 5.50%, 7/01/35...................... 10 10,712 Federal National Mortgage Association 3.00%, 2/01/45-8/01/45.............. 127 126,659 3.50%, 12/01/41-10/01/45............ 535 555,297 4.00%, 9/01/43-8/01/45.............. 525 558,828 4.50%, 1/25/46, TBA................. 319 344,480 5.50%, 1/01/35...................... 18 20,260 Series 2003 5.50%, 4/01/33-7/01/33.............. 36 41,028
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------- AGENCY FIXED RATE 30-YEAR (CONTINUED) Series 2004 5.50%, 4/01/34-11/01/34..................... $ 24 $ 27,083 Government National Mortgage Association 3.00%, 12/20/45............................. 71 72,059 3.50%, 2/01/46, TBA......................... 174 180,960 4.50%, 7/20/45.............................. 95 102,349 ---------- 2,160,041 ---------- AGENCY FIXED RATE 15-YEAR -- 0.8% Federal National Mortgage Association 2.50%, 1/01/31, TBA......................... 82 82,648 3.50%, 11/01/25............................. 115 120,656 ---------- 203,304 ---------- Total Mortgage Pass-Throughs.................. 2,363,345 ---------- AGENCIES -- 1.8% AGENCY DEBENTURES -- 1.8% Federal National Mortgage Association 6.25%, 5/15/29.............................. 70 94,904 6.625%, 11/15/30............................ 145 205,340 Residual Funding Corp. Principal Strip Zero Coupon, 7/15/20......................... 210 191,819 ---------- Total Agencies................................ 492,063 ---------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 1.4% NON-AGENCY FIXED RATE CMBS -- 1.3% Banc of America Commercial Mortgage Trust Series 2007-4, Class A1A 5.774%, 2/10/51.............................. 48 49,761 Citigroup Commercial Mortgage Trust Series 2006-C4, Class A1A 5.811%, 3/15/49.............................. 7 6,628 Commercial Mortgage Pass Through Certificates Series 2013-CR6, Class A2 2.122%, 3/10/46............................. 65 64,974 Commercial Mortgage Trust Series 2007-GG9, Class A4 5.444%, 3/10/39............................. 25 25,451 JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX, Class A1A 5.439%, 1/15/49.............................. 65 66,948 Merrill Lynch Mortgage Trust Series 2006-C2, Class A1A 5.739%, 8/12/43.............................. 13 13,203 ML-CFC Commercial Mortgage Trust Series 2006-4, Class A1A 5.166%, 12/12/49................... 27 28,010 UBS-Barclays Commercial Mortgage Trust Series 2012-C3, Class A4 3.091%, 8/10/49.............................. 17 16,906 Series 2012-C4, Class A5 2.85%, 12/10/45............................. 30 29,437 WFRBS Commercial Mortgage Trust Series 2013-C14, Class A5 3.337%, 6/15/46.............................. 33 33,039 ---------- 334,357 ----------
FSA-12 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------------- AGENCY CMBS -- 0.1% Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Series K010, Class A1 3.32%, 7/25/20..................................... $ 32 $ 32,774 -------- Total Commercial Mortgage-Backed Securities......... 367,131 -------- INFLATION-LINKED SECURITIES -- 0.9% UNITED STATES -- 0.9% U.S. Treasury Inflation Index 0.125%, 4/15/19 (TIPS)............................. 240 241,670 -------- ASSET-BACKED SECURITIES -- 0.6% AUTOS - FIXED RATE -- 0.4% Avis Budget Rental Car Funding AESOP LLC Series 2014-1A, Class A 2.46%, 7/20/20..................................... 100 100,317 -------- AUTOS - FLOATING RATE -- 0.1% GE Dealer Floorplan Master Note Trust Series 2014-1, Class A 0.782%, 7/20/19/(d)/............................... 32 31,955 -------- HOME EQUITY LOANS - FIXED RATE -- 0.1% Credit-Based Asset Servicing and Securitization LLC Series 2003-CB1, Class AF 3.95%, 1/25/33..................................... 15 14,784 -------- HOME EQUITY LOANS - FLOATING RATE -- 0.0% Asset Backed Funding Certificates Trust Series 2003-WF1, Class A2 1.547%, 12/25/32/(d)/.............................. 9 8,910 Residential Asset Securities Corp. Trust Series 2003-KS3, Class A2 1.022%, 5/25/33/(d)/............................... 2 1,454 -------- 10,364 -------- Total Asset-Backed Securities....................... 157,420 -------- GOVERNMENTS - SOVEREIGN AGENCIES -- 0.2% BRAZIL -- 0.1% Petrobras Global Finance BV 5.75%, 1/20/20..................................... 28 21,980 -------- COLOMBIA -- 0.0% Ecopetrol SA 5.875%, 5/28/45.................................... 9 6,390 -------- GERMANY -- 0.1% Landwirtschaftliche Rentenbank 5.125%, 2/01/17.................................... 20 20,868 -------- Total Governments -- Sovereign Agencies............. 49,238 -------- CORPORATES - NON-INVESTMENT GRADE -- 0.1%(B) INDUSTRIAL -- 0.1% BASIC -- 0.0% Teck Resources Ltd. 4.50%, 1/15/21..................................... 25 12,750 --------
PRINCIPAL AMOUNT (000) U.S. $ VALUE ----------------------------------------------------------------- ENERGY -- 0.1% ONEOK, Inc. 4.25%, 2/01/22.......................... $ 20 $ 14,400 Transocean, Inc. 6.50%, 11/15/20......................... 15 10,350 ----------- 24,750 ----------- Total Corporates -- Non-Investment Grade. 37,500 ----------- LOCAL GOVERNMENTS - MUNICIPAL BONDS -- 0.1% UNITED STATES -- 0.1% State of California Series 2010 7.625%, 3/01/40......................... 25 36,407 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1% NON-AGENCY FIXED RATE -- 0.1% JPMorgan Alternative Loan Trust Series 2006-A3, Class 2A1 2.815%, 7/25/36......................... 43 35,860 ----------- QUASI-SOVEREIGNS -- 0.1% MEXICO -- 0.1% Petroleos Mexicanos 3.50%, 1/30/23.......................... 40 34,900 ----------- GOVERNMENTS - SOVEREIGN BONDS -- 0.0% MEXICO -- 0.0% Mexico Government International Bond Series E 5.95%, 3/19/19.......................... 6 6,660 ----------- Total Long-Term Debt Securities (amortized cost $10,302,025)............ 10,373,405 ----------- SHARES ----------------------------------------------------------------- RIGHTS -- 0.0% ENERGY -- 0.0% OIL, GAS & CONSUMABLE FUELS -- 0.0% Repsol SA, expiring 1/05/16/(a)/ (cost $1,772)........................... 1,770 883 ----------- PRINCIPAL AMOUNT (000) ----------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 2.0% GOVERNMENTS - TREASURIES -- 2.0% U.S. Treasury Notes, 0.31%/d)/ (amortized cost $540,018)............... $ 540 540,018 ----------- TOTAL INVESTMENTS -- 100.2% (cost/amortized cost $25,457,256)...... 26,974,941 Other assets less liabilities -- (0.2)%.. (63,182) ----------- NET ASSETS -- 100.0% $26,911,759 ===========
----------- (a)Non-income producing security. (b)Classification of investment grade and non-investment grade is unaudited. (c)Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. (d)Floating Rate Security. Stated interest rate was in effect at December 31, 2015. FSA-13 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015 Glossary: CFC -- Customer Facility Charge CMBS -- Commercial Mortgage-Backed Securities REG -- Registered Shares REIT -- Real Estate Investment Trust TBA -- To Be Announced TIPS -- Treasury Inflation Protected Security The accompanying notes are an integral part of these financial statements. FSA-14 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 73.3% United States 6.2% Japan 4.1% United Kingdom 2.3% France 2.1% Switzerland 2.1% Germany 1.4% Australia 1.2% Canada 1.2% Netherlands 0.9% Italy 0.8% Denmark 0.7% Spain 0.7% Sweden 0.6% Belgium 2.4% Other ---- 100.0% ====== ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of long-term investments and may vary over time. "Other" country weightings represent 0.5% or less in the following countries: Austria, Bermuda, Brazil, Colombia, Finland, Hong Kong, Ireland, Israel, Mexico, New Zealand, Norway and Portugal. The accompanying notes are an integral part of these financial statements. FSA-15 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $51,075,617)......... $82,017,887 Cash......................................................... 468,238 Interest and dividends receivable............................ 81,464 Fees receivable from Contractowners.......................... 14,131 ----------- Total assets.............................................. 82,581,720 ----------- LIABILITIES: Due to AXA Equitable's General Account....................... 7,366 Accrued custody and bank fees................................ 8,858 Administrative fees payable.................................. 766 Asset management fee payable................................. 25,706 Accrued expenses............................................. 65,650 Variation margin due to broker............................... 2,880 ----------- Total liabilities......................................... 111,226 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION. $82,470,494 =========== Amount retained by AXA Equitable in Separate Account No. 4... $ 5,242,960 Net assets attributable to contractowners.................... 40,149,073 Net assets allocated to contracts in payout period........... 37,078,461 ----------- NET ASSETS................................................... $82,470,494 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 2,516 $17,164.79 RIA........... 1,891 1,586.06 MRP........... 56,626 615.04 EPP........... 845 1,645.69
----------- The accompanying notes are an integral part of these financial statements. FSA-16 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends (net of foreign taxes withheld of $137)................................ $ 1,436,537 ----------- Total investment income......................................................... 1,436,537 ----------- EXPENSES (NOTE 6): Investment management fees....................................................... (122,972) Custody and bank fees............................................................ (8,050) Other operating expenses......................................................... (66,917) ----------- Total expenses.................................................................. (197,939) ----------- NET INVESTMENT INCOME.............................................................. 1,238,598 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS (NOTE 2): Net realized gain from investments............................................... 11,232,955 Net realized loss on futures contracts........................................... (36,841) Change in unrealized depreciation of investments................................. (7,465,306) Change in unrealized depreciation on futures contracts........................... (9,337) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FUTURES CONTRACTS.............. 3,721,471 ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS.............................. $ 4,960,069 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-17 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income..................................................................... $ 1,238,598 $ 1,259,822 Net realized gain on investments and futures contracts.................................... 11,196,114 7,695,542 Net change in unrealized appreciation (depreciation) of investments and futures contracts. (7,474,643) 1,679,002 ------------ ------------ Net increase in net assets attributable to operations.................................... 4,960,069 10,634,366 ------------ ------------ FROM CONTRACTOWNER TRANSACTIONS: Contributions............................................................................. 3,591,850 4,896,954 Withdrawals............................................................................... (12,757,209) (10,673,660) Asset management fees (Note 6)............................................................ (63,578) (62,039) Administrative fees (Note 6).............................................................. (342,602) (376,762) ------------ ------------ Net decrease in net assets attributable to contractowner transactions.................... (9,571,539) (6,215,507) ------------ ------------ Net increase (decrease) in net assets attributable to AXA Equitable's transactions*...... (4,498,097) 2,263 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS........................................................... (9,109,567) 4,421,122 NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD......... 91,580,061 87,158,939 ------------ ------------ NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD............... $ 82,470,494 $ 91,580,061 ============ ============
----------- The accompanying notes are an integral part of these financial statements. * Excludes $5,192,000 of surplus transfers from contractowners to AXA Equitable retention account. FSA-18 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------------- COMMON STOCKS -- 99.5% INFORMATION TECHNOLOGY -- 27.8% COMMUNICATIONS EQUIPMENT -- 0.5% Arista Networks, Inc./(a)/............................ 190 $ 14,790 ARRIS Group, Inc./(a)/................................ 150 4,586 CommScope Holding Co., Inc./(a)/...................... 266 6,887 F5 Networks, Inc./(a)/................................ 600 58,176 Harris Corp........................................... 180 15,642 Juniper Networks, Inc................................. 530 14,628 Motorola Solutions, Inc............................... 1,370 93,776 Palo Alto Networks, Inc./(a)/......................... 610 107,445 QUALCOMM, Inc......................................... 1,840 91,972 ---------- 407,902 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% Amphenol Corp. -- Class A............................. 2,310 120,651 CDW Corp./DE.......................................... 941 39,560 Cognex Corp........................................... 600 20,262 FLIR Systems, Inc..................................... 680 19,088 Ingram Micro, Inc. -- Class A......................... 50 1,519 IPG Photonics Corp./(a)/.............................. 260 23,182 Jabil Circuit, Inc.................................... 250 5,822 Keysight Technologies, Inc./(a)/...................... 1,050 29,746 National Instruments Corp............................. 100 2,869 Trimble Navigation Ltd./(a)/.......................... 80 1,716 Zebra Technologies Corp. -- Class A/(a)/.............. 420 29,253 ---------- 293,668 ---------- INTERNET SOFTWARE & SERVICES -- 7.5% Akamai Technologies, Inc./(a)/........................ 1,370 72,103 Alphabet, Inc. -- Class A/(a)/........................ 2,280 1,773,863 Alphabet, Inc. -- Class C/(a)/........................ 2,371 1,799,304 CoStar Group, Inc./(a)/............................... 300 62,007 eBay, Inc./(a)/....................................... 9,380 257,762 Facebook, Inc. -- Class A/(a)/........................ 16,750 1,753,055 GoDaddy, Inc. -- Class A/(a)/......................... 150 4,809 IAC/InterActiveCorp................................... 490 29,425 LinkedIn Corp. -- Class A/(a)/........................ 920 207,074 Pandora Media, Inc./(a)/.............................. 1,624 21,778 Rackspace Hosting, Inc./(a)/.......................... 880 22,282 Twitter, Inc./(a)/.................................... 4,343 100,497 VeriSign, Inc./(a)/................................... 740 64,646 Yelp, Inc./(a)/....................................... 500 14,400 Zillow Group, Inc. -- Class A/ (a)/................... 200 5,208 Zillow Group, Inc. -- Class C/ (a)/................... 400 9,392 ---------- 6,197,605 ---------- IT SERVICES -- 6.1% Accenture PLC -- Class A.............................. 4,860 507,870 Alliance Data Systems Corp./(a)/...................... 530 146,582 Automatic Data Processing, Inc........................ 2,920 247,382 Black Knight Financial Services, Inc. -- Class A/(a)/. 100 3,306 Booz Allen Hamilton Holding Corp...................... 650 20,053 Broadridge Financial Solutions, Inc................... 880 47,282 Cognizant Technology Solutions Corp. -- Class A/(a)/.. 4,720 283,294 CoreLogic, Inc./United States/(a)/.................... 300 10,158 DST Systems, Inc...................................... 250 28,515 Fidelity National Information Services, Inc........... 880 53,328 First Data Corp. -- Class A/(a)/...................... 1,087 17,414 Fiserv, Inc./(a)/..................................... 1,870 171,030 FleetCor Technologies, Inc./(a)/...................... 744 106,340
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- IT SERVICES (CONTINUED) Gartner, Inc./(a)/...................... 600 $ 54,420 Genpact Ltd./(a)/....................... 1,180 29,476 Global Payments, Inc.................... 960 61,930 International Business Machines Corp.... 3,965 545,663 Jack Henry & Associates, Inc............ 650 50,739 Leidos Holdings, Inc.................... 50 2,813 MasterCard, Inc. -- Class A............. 7,750 754,540 Paychex, Inc............................ 2,130 112,656 PayPal Holdings, Inc./(a)/.............. 9,380 339,556 Sabre Corp.............................. 800 22,376 Square, Inc. -- Class A/(a)/............ 188 2,461 Teradata Corp./(a)/..................... 750 19,815 Total System Services, Inc.............. 1,250 62,250 Vantiv, Inc. -- Class A/(a)/............ 1,080 51,214 VeriFone Systems, Inc./(a)/............. 800 22,416 Visa, Inc. -- Class A................... 15,210 1,179,536 Western Union Co. (The) -- Class W...... 3,940 70,565 WEX, Inc./(a)/.......................... 300 26,520 ---------- 5,051,500 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0% Analog Devices, Inc..................... 2,150 118,938 Applied Materials, Inc.................. 5,600 104,552 Atmel Corp.............................. 3,200 27,552 Avago Technologies Ltd.................. 2,000 290,300 Broadcom Corp. -- Class A............... 300 17,346 Intel Corp.............................. 2,500 86,125 KLA-Tencor Corp......................... 1,200 83,220 Lam Research Corp....................... 900 71,478 Linear Technology Corp.................. 1,850 78,569 Maxim Integrated Products, Inc.......... 700 26,600 Microchip Technology, Inc............... 1,600 74,464 Micron Technology, Inc./(a)/............ 600 8,496 NXP Semiconductors NV/(a)/.............. 1 57 ON Semiconductor Corp./(a)/............. 3,050 29,890 Qorvo, Inc./(a)/........................ 1,100 55,990 Skyworks Solutions, Inc................. 1,450 111,403 SunEdison, Inc./(a)/.................... 1,850 9,417 SunPower Corp./(a)/..................... 50 1,501 Texas Instruments, Inc.................. 8,050 441,220 Xilinx, Inc............................. 450 21,137 ---------- 1,658,255 ---------- SOFTWARE -- 5.6% Adobe Systems, Inc./(a)/................ 3,840 360,730 ANSYS, Inc./(a)/........................ 130 12,025 Autodesk, Inc./(a)/..................... 1,270 77,381 Cadence Design Systems, Inc./(a)/....... 2,270 47,239 CDK Global, Inc......................... 1,190 56,489 Citrix Systems, Inc./(a)/............... 1,220 92,293 Electronic Arts, Inc./(a)/.............. 2,400 164,928 FireEye, Inc./(a)/...................... 1,017 21,093 Fortinet, Inc./(a)/..................... 1,030 32,105 Intuit, Inc............................. 2,170 209,405 King Digital Entertainment PLC.......... 550 9,834 Microsoft Corp./(b)/.................... 35,570 1,973,424 NetSuite, Inc./(a)/..................... 330 27,925 Oracle Corp............................. 14,735 538,270 PTC, Inc./(a)/.......................... 800 27,704 Red Hat, Inc./(a)/...................... 1,410 116,762
FSA-19 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- SOFTWARE (CONTINUED) salesforce.com, Inc./(a)/.................... 5,110 $ 400,624 ServiceNow, Inc./(a)/........................ 1,157 100,150 SolarWinds, Inc./(a)/........................ 410 24,149 Solera Holdings, Inc......................... 440 24,125 Splunk, Inc./(a)/............................ 930 54,693 SS&C Technologies Holdings, Inc.............. 500 34,135 Synopsys, Inc./(a)/.......................... 50 2,280 Tableau Software, Inc. -- Class A/(a)/....... 400 37,688 Ultimate Software Group, Inc. (The)/(a)/..... 250 48,877 VMware, Inc. -- Class A/(a)/................. 560 31,679 Workday, Inc. -- Class A/(a)/................ 760 60,557 ----------- 4,586,564 ----------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 5.8% 3D Systems Corp./(a)/........................ 300 2,607 Apple, Inc................................... 44,690 4,704,069 EMC Corp./MA................................. 1,180 30,302 NetApp, Inc.................................. 620 16,449 ----------- 4,753,427 ----------- Total Information Technology................. 22,948,921 ----------- CONSUMER DISCRETIONARY -- 21.3% AUTO COMPONENTS -- 0.5% BorgWarner, Inc.............................. 1,750 75,652 Delphi Automotive PLC........................ 2,200 188,606 Gentex Corp./MI.............................. 1,100 17,611 Johnson Controls, Inc........................ 1,050 41,465 Lear Corp.................................... 500 61,415 Visteon Corp./(a)/........................... 350 40,075 ----------- 424,824 ----------- AUTOMOBILES -- 0.3% Harley-Davidson, Inc......................... 800 36,312 Tesla Motors, Inc./(a)/...................... 820 196,808 Thor Industries, Inc......................... 350 19,653 ----------- 252,773 ----------- DISTRIBUTORS -- 0.2% Genuine Parts Co............................. 1,050 90,184 LKQ Corp./(a)/............................... 2,360 69,927 ----------- 160,111 ----------- DIVERSIFIED CONSUMER SERVICES -- 0.2% H&R Block, Inc............................... 1,900 63,289 Service Corp. International/US............... 1,550 40,331 ServiceMaster Global Holdings, Inc./(a)/..... 741 29,077 ----------- 132,697 ----------- HOTELS, RESTAURANTS & LEISURE -- 3.4% Aramark...................................... 1,324 42,699 Brinker International, Inc................... 400 19,180 Chipotle Mexican Grill, Inc. -- Class A/(a)/. 300 143,955 Choice Hotels International, Inc............. 250 12,603 Darden Restaurants, Inc...................... 100 6,364 Domino's Pizza, Inc.......................... 450 50,063 Dunkin' Brands Group, Inc.................... 746 31,772 Extended Stay America, Inc................... 450 7,155 Hilton Worldwide Holdings, Inc............... 3,974 85,044 International Game Technology PLC............ 400 6,472 Las Vegas Sands Corp......................... 2,800 122,752
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (CONTINUED) Marriott International, Inc./MD -- Class A........... 1,628 $ 109,141 McDonald's Corp...................................... 7,400 874,236 MGM Resorts International/(a)/....................... 150 3,408 Norwegian Cruise Line Holdings Ltd./(a)/............. 890 52,154 Panera Bread Co. -- Class A/(a)/..................... 200 38,956 Six Flags Entertainment Corp......................... 480 26,371 Starbucks Corp....................................... 11,550 693,346 Starwood Hotels & Resorts Worldwide, Inc............. 1,300 90,064 Wyndham Worldwide Corp............................... 900 65,385 Wynn Resorts Ltd..................................... 500 34,595 Yum! Brands, Inc..................................... 3,350 244,717 ---------- 2,760,432 ---------- HOUSEHOLD DURABLES -- 0.6% DR Horton, Inc....................................... 1,000 32,030 GoPro, Inc. -- Class A/(a)/.......................... 616 11,094 Harman International Industries, Inc................. 500 47,105 Jarden Corp./(a)/.................................... 1,625 92,820 Leggett & Platt, Inc................................. 1,000 42,020 Lennar Corp. -- Class A.............................. 450 22,010 Lennar Corp. -- Class B.............................. 50 2,009 Mohawk Industries, Inc./(a)/......................... 350 66,286 Newell Rubbermaid, Inc............................... 1,000 44,080 NVR, Inc./(a)/....................................... 50 82,150 Tempur Sealy International, Inc./(a)/................ 400 28,184 Toll Brothers, Inc./(a)/............................. 400 13,320 TopBuild Corp./(a)/.................................. 272 8,369 Tupperware Brands Corp............................... 350 19,478 Whirlpool Corp....................................... 50 7,344 ---------- 518,299 ---------- INTERNET & CATALOG RETAIL -- 4.0% Amazon.com, Inc./(a)/................................ 3,040 2,054,706 Expedia, Inc......................................... 851 105,805 Groupon, Inc./(a)/................................... 3,840 11,789 Liberty Interactive Corp. QVC Group -- Class A/(a)/.. 1,690 46,171 Liberty Ventures -- Series A/(a)/.................... 1,035 46,689 Netflix, Inc./(a)/................................... 3,293 376,653 Priceline Group, Inc. (The)/(a)/..................... 433 552,053 TripAdvisor, Inc./(a)/............................... 820 69,905 ---------- 3,263,771 ---------- LEISURE PRODUCTS -- 0.1% Brunswick Corp./DE................................... 450 22,729 Hasbro, Inc.......................................... 650 43,784 Polaris Industries, Inc.............................. 550 47,272 Vista Outdoor, Inc./(a)/............................. 50 2,226 ---------- 116,011 ---------- MEDIA -- 5.2% AMC Networks, Inc. -- Class A/(a)/................... 400 29,872 Cablevision Systems Corp. -- Class A................. 200 6,380 CBS Corp. -- Class B................................. 3,750 176,737 Charter Communications, Inc. -- Class A/(a)/......... 650 119,015 Cinemark Holdings, Inc............................... 850 28,415 Clear Channel Outdoor Holdings, Inc. -- Class A/(a)/. 100 559 Comcast Corp. -- Class A............................. 17,500 987,525 Discovery Communications, Inc. -- Class A/(a)/....... 1,050 28,014 Discovery Communications, Inc. -- Class C/(a)/....... 1,850 46,657 DISH Network Corp. -- Class A/(a)/................... 1,100 62,898 Interpublic Group of Cos., Inc. (The)................ 3,200 74,496
FSA-20 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------- MEDIA (CONTINUED) Lions Gate Entertainment Corp................... 650 $ 21,054 Live Nation Entertainment, Inc./(a)/............ 1,100 27,027 Madison Square Garden Co. (The) -- Class A/(a)/. 166 26,859 Morningstar, Inc................................ 150 12,062 MSG Networks, Inc./(a)/......................... 400 8,320 Omnicom Group, Inc.............................. 1,900 143,754 Regal Entertainment Group -- Class A............ 550 10,379 Scripps Networks Interactive, Inc. -- Class A... 650 35,886 Sirius XM Holdings, Inc./(a)/................... 17,800 72,446 Starz -- Class A/(a)/........................... 600 20,100 Time Warner Cable, Inc. -- Class A.............. 2,250 417,577 Time Warner, Inc................................ 3,300 213,411 Twenty-First Century Fox, Inc. -- Class A....... 6,210 168,664 Twenty-First Century Fox, Inc. -- Class B....... 2,450 66,713 Viacom, Inc. -- Class A......................... 50 2,200 Viacom, Inc. -- Class B......................... 2,625 108,045 Walt Disney Co. (The)........................... 13,200 1,387,056 ---------- 4,302,121 ---------- MULTILINE RETAIL -- 0.6% Dillard's, Inc. -- Class A...................... 30 1,971 Dollar General Corp............................. 2,370 170,332 Dollar Tree, Inc./(a)/.......................... 1,806 139,459 Macy's, Inc..................................... 1,890 66,112 Nordstrom, Inc.................................. 1,050 52,301 Sears Holdings Corp./(a)/....................... 20 411 Target Corp..................................... 428 31,077 ---------- 461,663 ---------- SPECIALTY RETAIL -- 4.7% Aaron's, Inc.................................... 45 1,008 Advance Auto Parts, Inc......................... 610 91,811 AutoNation, Inc./(a)/........................... 480 28,637 AutoZone, Inc./(a)/............................. 290 215,154 Bed Bath & Beyond, Inc./(a)/.................... 1,310 63,207 Cabela's, Inc./(a)/............................. 50 2,337 CarMax, Inc./(a)/............................... 1,600 86,352 CST Brands, Inc................................. 420 16,439 Dick's Sporting Goods, Inc...................... 490 17,321 DSW, Inc. -- Class A............................ 50 1,193 Foot Locker, Inc................................ 880 57,279 Gap, Inc. (The)................................. 1,820 44,954 GNC Holdings, Inc. -- Class A................... 600 18,612 Home Depot, Inc. (The).......................... 10,120 1,338,370 L Brands, Inc................................... 1,930 184,933 Lowe's Cos., Inc................................ 7,314 556,157 Michaels Cos., Inc. (The)/(a)/.................. 394 8,711 Murphy USA, Inc./(a)/........................... 20 1,215 O'Reilly Automotive, Inc./(a)/.................. 830 210,339 Office Depot, Inc./(a)/......................... 750 4,230 Penske Automotive Group, Inc.................... 90 3,811 Ross Stores, Inc................................ 3,190 171,654 Sally Beauty Holdings, Inc./(a)/................ 1,180 32,910 Signet Jewelers Ltd............................. 660 81,635 Tiffany & Co.................................... 680 51,877 TJX Cos., Inc. (The)............................ 5,220 370,150 Tractor Supply Co............................... 1,000 85,500 Ulta Salon Cosmetics & Fragrance, Inc./(a)/..... 540 99,900 Urban Outfitters, Inc./(a)/..................... 640 14,560 Williams-Sonoma, Inc............................ 630 36,798 ---------- 3,897,054 ----------
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.5% Carter's, Inc............................ 350 $ 31,160 Coach, Inc............................... 300 9,819 Fossil Group, Inc./(a)/.................. 250 9,140 Hanesbrands, Inc......................... 3,100 91,233 Kate Spade & Co./(a)/.................... 950 16,882 lululemon athletica, Inc./(a)/........... 800 41,976 Michael Kors Holdings Ltd./(a)/.......... 1,500 60,090 NIKE, Inc. -- Class B.................... 10,600 662,500 Ralph Lauren Corp........................ 50 5,574 Skechers U.S.A., Inc. -- Class A/(a)/.... 950 28,700 Under Armour, Inc. -- Class A/(a)/....... 1,350 108,823 VF Corp.................................. 2,600 161,850 ----------- 1,227,747 ----------- Total Consumer Discretionary............. 17,517,503 ----------- HEALTH CARE -- 17.0% BIOTECHNOLOGY -- 7.1% AbbVie, Inc.............................. 12,809 758,805 Agios Pharmaceuticals, Inc./(a)/......... 200 12,984 Alexion Pharmaceuticals, Inc./(a)/....... 1,700 324,275 Alkermes PLC/(a)/........................ 900 71,442 Alnylam Pharmaceuticals, Inc./(a)/....... 500 47,070 Amgen, Inc............................... 5,900 957,747 Baxalta, Inc............................. 2,600 101,478 Biogen, Inc./(a)/........................ 1,749 535,806 BioMarin Pharmaceutical, Inc./(a)/....... 1,200 125,712 Bluebird Bio, Inc./(a)/.................. 200 12,844 Celgene Corp./(a)/....................... 6,126 733,650 Gilead Sciences, Inc..................... 11,416 1,155,185 Incyte Corp./(a)/........................ 1,200 130,140 Intercept Pharmaceuticals, Inc./(a)/..... 150 22,403 Intrexon Corp./(a)/...................... 350 10,553 Ionis Pharmaceuticals, Inc./(a)/......... 850 52,640 Juno Therapeutics, Inc./(a)/............. 77 3,386 Medivation, Inc./(a)/.................... 1,150 55,591 OPKO Health, Inc./(a)/................... 2,250 22,612 Puma Biotechnology, Inc./(a)/............ 200 15,680 Regeneron Pharmaceuticals, Inc./(a)/..... 650 352,865 Seattle Genetics, Inc./(a)/.............. 750 33,660 United Therapeutics Corp./(a)/........... 400 62,644 Vertex Pharmaceuticals, Inc./(a)/........ 1,900 239,077 ----------- 5,838,249 ----------- HEALTH CARE EQUIPMENT & SUPPLIES -- 1.7% Alere, Inc./(a)/......................... 350 13,682 Align Technology, Inc./(a)/.............. 550 36,218 Baxter International, Inc................ 2,600 99,190 Becton Dickinson and Co.................. 1,650 254,248 Boston Scientific Corp./(a)/............. 750 13,830 Cooper Cos., Inc. (The).................. 300 40,260 CR Bard, Inc............................. 600 113,664 DENTSPLY International, Inc.............. 200 12,170 DexCom, Inc./(a)/........................ 550 45,045 Edwards Lifesciences Corp./(a)/.......... 1,600 126,368 Hill-Rom Holdings, Inc................... 400 19,224 Hologic, Inc./(a)/....................... 1,900 73,511 IDEXX Laboratories, Inc./(a)/............ 650 47,398 Intuitive Surgical, Inc./(a)/............ 300 163,848 ResMed, Inc.............................. 1,050 56,374 Sirona Dental Systems, Inc./(a)/......... 450 49,307
FSA-21 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ HEALTH CARE EQUIPMENT & SUPPLIES (CONTINUED) St Jude Medical, Inc................................ 1,200 $ 74,124 Stryker Corp........................................ 1,300 120,822 Varian Medical Systems, Inc./(a)/................... 800 64,640 Zimmer Biomet Holdings, Inc......................... 100 10,259 ---------- 1,434,182 ---------- HEALTH CARE PROVIDERS & SERVICES -- 3.6% Acadia Healthcare Co., Inc./(a)/.................... 400 24,984 Aetna, Inc.......................................... 700 75,684 AmerisourceBergen Corp. -- Class A.................. 1,700 176,307 Anthem, Inc......................................... 450 62,748 Brookdale Senior Living, Inc./(a)/.................. 300 5,538 Cardinal Health, Inc................................ 2,350 209,784 Centene Corp./(a)/.................................. 850 55,938 Cigna Corp.......................................... 2,050 299,976 DaVita HealthCare Partners, Inc./(a)/............... 400 27,884 Envision Healthcare Holdings, Inc./(a)/............. 1,403 36,436 Express Scripts Holding Co./(a)/.................... 4,370 381,982 HCA Holdings, Inc./(a)/............................. 200 13,526 Health Net, Inc./CA/(a)/............................ 100 6,846 Henry Schein, Inc./(a)/............................. 700 110,733 Humana, Inc......................................... 1,050 187,435 Laboratory Corp. of America Holdings/(a)/........... 270 33,383 LifePoint Health, Inc./(a)/......................... 50 3,670 McKesson Corp....................................... 1,800 355,014 MEDNAX Inc/(a)/..................................... 350 25,081 Patterson Cos., Inc................................. 350 15,824 Premier, Inc. -- Class A/(a)/....................... 289 10,193 Tenet Healthcare Corp./(a)/......................... 712 21,574 UnitedHealth Group, Inc............................. 7,050 829,362 Universal Health Services, Inc. -- Class B.......... 150 17,924 VCA, Inc./(a)/...................................... 600 33,000 ---------- 3,020,826 ---------- HEALTH CARE TECHNOLOGY -- 0.3% Allscripts Healthcare Solutions, Inc./(a)/.......... 350 5,383 athenahealth, Inc./(a)/............................. 350 56,340 Cerner Corp./(a)/................................... 2,250 135,382 IMS Health Holdings, Inc./(a)/...................... 1,000 25,470 Inovalon Holdings, Inc. -- Class A/(a)/............. 164 2,788 Veeva Systems, Inc. -- Class A/(a)/................. 538 15,521 ---------- 240,884 ---------- LIFE SCIENCES TOOLS & SERVICES -- 0.8% Bio-Techne Corp..................................... 150 13,500 Bruker Corp./(a)/................................... 800 19,416 Charles River Laboratories International, Inc./(a)/. 300 24,117 Illumina, Inc./(a)/................................. 1,100 211,139 Mettler-Toledo International, Inc./(a)/............. 250 84,783 PerkinElmer, Inc.................................... 100 5,357 Quintiles Transnational Holdings, Inc./(a)/......... 500 34,330 Thermo Fisher Scientific, Inc....................... 1,100 156,035 VWR Corp./(a)/...................................... 85 2,406 Waters Corp./(a)/................................... 600 80,748 ---------- 631,831 ---------- PHARMACEUTICALS -- 3.5% Akorn, Inc./ (a)/................................... 600 22,386 Allergan PLC/(a)/................................... 1,372 428,750 Bristol-Myers Squibb Co............................. 12,950 890,831 Eli Lilly & Co...................................... 7,550 636,163
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------- PHARMACEUTICALS (CONTINUED) Endo International PLC/(a)/........... 600 $ 36,732 Jazz Pharmaceuticals PLC/(a)/......... 500 70,280 Johnson & Johnson..................... 2,750 282,480 Mallinckrodt PLC/(a)/................. 343 25,598 Merck & Co., Inc...................... 2,450 129,409 Mylan NV/(a)/......................... 2,747 148,530 Perrigo Co. PLC....................... 236 34,149 Zoetis, Inc........................... 3,780 181,138 ----------- 2,886,446 ----------- Total Health Care..................... 14,052,418 ----------- CONSUMER STAPLES -- 11.2% BEVERAGES -- 3.8% Brown-Forman Corp. -- Class A......... 200 22,022 Brown-Forman Corp. -- Class B......... 875 86,870 Coca-Cola Co. (The)................... 30,400 1,305,984 Coca-Cola Enterprises, Inc............ 1,800 88,632 Constellation Brands, Inc. -- Class A. 1,250 178,050 Dr Pepper Snapple Group, Inc.......... 1,500 139,800 Monster Beverage Corp./(a)/........... 1,150 171,304 PepsiCo, Inc.......................... 11,487 1,147,781 ----------- 3,140,443 ----------- FOOD & STAPLES RETAILING -- 2.4% Costco Wholesale Corp................. 3,450 557,175 CVS Health Corp....................... 8,100 791,937 Kroger Co. (The)...................... 7,550 315,817 Rite Aid Corp./(a)/................... 4,500 35,280 Sprouts Farmers Market, Inc./(a)/..... 1,136 30,206 Sysco Corp............................ 1,400 57,400 Walgreens Boots Alliance, Inc......... 950 80,897 Whole Foods Market, Inc............... 2,500 83,750 ----------- 1,952,462 ----------- FOOD PRODUCTS -- 1.7% Blue Buffalo Pet Products, Inc./(a)/.. 160 2,994 Campbell Soup Co...................... 700 36,785 ConAgra Foods, Inc.................... 450 18,972 Flowers Foods, Inc.................... 1,150 24,714 General Mills, Inc.................... 4,600 265,236 Hain Celestial Group, Inc. (The)/(a)/. 750 30,292 Hershey Co. (The)..................... 1,100 98,197 Hormel Foods Corp..................... 1,000 79,080 Ingredion, Inc........................ 50 4,792 Kellogg Co............................ 1,750 126,472 Keurig Green Mountain, Inc............ 950 85,481 Kraft Heinz Co. (The)................. 4,566 332,222 McCormick & Co., Inc./MD.............. 950 81,282 Mead Johnson Nutrition Co. -- Class A. 1,550 122,372 Pilgrim's Pride Corp.................. 50 1,105 Tyson Foods, Inc. -- Class A.......... 100 5,333 WhiteWave Foods Co. (The)/(a)/........ 1,298 50,505 ----------- 1,365,834 ----------- HOUSEHOLD PRODUCTS -- 1.1% Church & Dwight Co., Inc.............. 1,000 84,880 Clorox Co. (The)...................... 850 107,806 Colgate-Palmolive Co.................. 6,150 409,713 Kimberly-Clark Corp................... 2,200 280,060 Spectrum Brands Holdings, Inc......... 200 20,360 ----------- 902,819 -----------
FSA-22 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------------- PERSONAL PRODUCTS -- 0.2% Coty, Inc. -- Class A............................. 554 $ 14,199 Estee Lauder Cos., Inc. (The) -- Class A.......... 1,650 145,299 Herbalife Ltd./(a)/............................... 400 21,448 Nu Skin Enterprises, Inc. -- Class A.............. 100 3,789 ---------- 184,735 ---------- TOBACCO -- 2.0% Altria Group, Inc................................. 14,350 835,314 Philip Morris International, Inc.................. 5,977 525,438 Reynolds American, Inc............................ 6,394 295,083 ---------- 1,655,835 ---------- Total Consumer Staples............................ 9,202,128 ---------- INDUSTRIALS -- 10.7% AEROSPACE & DEFENSE -- 2.9% B/E Aerospace, Inc................................ 750 31,778 Boeing Co. (The).................................. 5,390 779,340 General Dynamics Corp............................. 750 103,020 Hexcel Corp....................................... 650 30,193 Honeywell International, Inc...................... 6,050 626,598 Huntington Ingalls Industries, Inc................ 400 50,740 Lockheed Martin Corp.............................. 1,500 325,725 Northrop Grumman Corp............................. 500 94,405 Precision Castparts Corp.......................... 250 58,003 Rockwell Collins, Inc............................. 1,000 92,300 Spirit AeroSystems Holdings, Inc. -- Class A/(a)/. 950 47,567 Textron, Inc...................................... 400 16,804 TransDigm Group, Inc./(a)/........................ 450 102,802 United Technologies Corp.......................... 650 62,445 ---------- 2,421,720 ---------- AIR FREIGHT & LOGISTICS -- 1.0% CH Robinson Worldwide, Inc........................ 1,100 68,222 Expeditors International of Washington, Inc....... 1,450 65,395 FedEx Corp........................................ 850 126,641 United Parcel Service, Inc. -- Class B............ 5,400 519,642 ---------- 779,900 ---------- AIRLINES -- 1.3% Alaska Air Group, Inc............................. 950 76,484 American Airlines Group, Inc...................... 5,304 224,624 Delta Air Lines, Inc.............................. 6,300 319,347 JetBlue Airways Corp./(a)/........................ 850 19,253 Southwest Airlines Co............................. 5,100 219,606 Spirit Airlines, Inc./(a)/........................ 500 19,925 United Continental Holdings, Inc./(a)/............ 2,927 167,717 ---------- 1,046,956 ---------- BUILDING PRODUCTS -- 0.3% Allegion PLC...................................... 750 49,440 AO Smith Corp..................................... 600 45,966 Armstrong World Industries, Inc./(a)/............. 100 4,573 Fortune Brands Home & Security, Inc............... 350 19,425 Lennox International, Inc......................... 350 43,715 Masco Corp........................................ 2,650 74,995 USG Corp./(a)/.................................... 650 15,789 ---------- 253,903 ---------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% Cintas Corp....................................... 700 63,735 Clean Harbors, Inc./(a)/.......................... 300 12,495
COMPANY SHARES U.S. $ VALUE --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES (CONTINUED) Copart, Inc./(a)/.......................... 900 $ 34,209 Covanta Holding Corp....................... 800 12,392 KAR Auction Services, Inc.................. 350 12,960 Pitney Bowes, Inc.......................... 600 12,390 Rollins, Inc............................... 650 16,835 RR Donnelley & Sons Co..................... 800 11,776 Stericycle, Inc./(a)/...................... 700 84,420 Tyco International PLC/(a)/................ 2,800 89,292 Waste Management, Inc...................... 200 10,674 ---------- 361,178 ---------- CONSTRUCTION & ENGINEERING -- 0.0% AECOM/(a)/................................. 150 4,505 Quanta Services, Inc./(a)/................. 300 6,075 ---------- 10,580 ---------- ELECTRICAL EQUIPMENT -- 0.6% Acuity Brands, Inc......................... 350 81,830 AMETEK, Inc................................ 1,790 95,926 Babcock & Wilcox Enterprises, Inc./(a)/.... 50 1,044 BWX Technologies, Inc...................... 150 4,766 Emerson Electric Co........................ 3,550 169,796 Hubbell, Inc............................... 50 5,052 Regal Beloit Corp.......................... 50 2,926 Rockwell Automation, Inc................... 1,000 102,610 SolarCity Corp./(a)/....................... 450 22,959 ---------- 486,909 ---------- INDUSTRIAL CONGLOMERATES -- 1.1% 3M Co...................................... 4,958 746,873 Carlisle Cos., Inc......................... 100 8,869 Danaher Corp............................... 930 86,378 Roper Technologies, Inc.................... 350 66,427 ---------- 908,547 ---------- MACHINERY -- 1.2% Allison Transmission Holdings, Inc......... 700 18,123 Caterpillar, Inc........................... 750 50,970 Cummins, Inc............................... 1,000 88,010 Deere & Co................................. 400 30,508 Donaldson Co., Inc......................... 900 25,794 Flowserve Corp............................. 400 16,832 Graco, Inc................................. 450 32,431 IDEX Corp.................................. 500 38,305 Illinois Tool Works, Inc................... 2,350 217,798 Ingersoll-Rand PLC......................... 50 2,765 Lincoln Electric Holdings, Inc............. 450 23,351 Middleby Corp. (The)/(a)/.................. 400 43,148 Nordson Corp............................... 400 25,660 PACCAR, Inc................................ 2,400 113,760 Parker-Hannifin Corp....................... 500 48,490 Snap-on, Inc............................... 500 85,715 Stanley Black & Decker, Inc................ 100 10,673 Toro Co. (The)............................. 450 32,881 Valmont Industries, Inc.................... 50 5,301 WABCO Holdings, Inc./(a)/.................. 450 46,017 Wabtec Corp./DE............................ 700 49,784 ---------- 1,006,316 ---------- PROFESSIONAL SERVICES -- 0.5% Dun & Bradstreet Corp. (The)............... 100 10,393 Equifax, Inc............................... 900 100,233
FSA-23 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------------- PROFESSIONAL SERVICES (CONTINUED) IHS, Inc. -- Class A/(a)/.......................... 500 $ 59,215 Nielsen Holdings PLC............................... 1,953 91,010 Robert Half International, Inc..................... 1,000 47,140 Towers Watson & Co. -- Class A..................... 100 12,846 TransUnion/(a)/.................................... 160 4,411 Verisk Analytics, Inc. -- Class A/(a)/............. 1,307 100,482 ---------- 425,730 ---------- ROAD & RAIL -- 0.9% AMERCO............................................. 50 19,475 Avis Budget Group, Inc./(a)/....................... 750 27,217 CSX Corp........................................... 1,900 49,305 Genesee & Wyoming, Inc. -- Class A/(a)/............ 150 8,054 Hertz Global Holdings, Inc./(a)/................... 3,100 44,113 JB Hunt Transport Services, Inc.................... 650 47,684 Landstar System, Inc............................... 250 14,663 Old Dominion Freight Line, Inc./(a)/............... 450 26,581 Union Pacific Corp................................. 6,800 531,760 ---------- 768,852 ---------- TRADING COMPANIES & DISTRIBUTORS -- 0.4% Air Lease Corp..................................... 50 1,674 Fastenal Co........................................ 2,200 89,804 HD Supply Holdings, Inc./(a)/...................... 1,278 38,378 MSC Industrial Direct Co., Inc. -- Class A......... 100 5,627 United Rentals, Inc./(a)/.......................... 700 50,778 Watsco, Inc........................................ 200 23,426 WW Grainger, Inc................................... 550 111,425 ---------- 321,112 ---------- Total Industrials.................................. 8,791,703 ---------- FINANCIALS -- 5.5% BANKS -- 0.1% Signature Bank/New York NY/(a)/.................... 400 61,348 SVB Financial Group/(a)/........................... 250 29,725 ---------- 91,073 ---------- CAPITAL MARKETS -- 1.2% Affiliated Managers Group, Inc./(a)/............... 450 71,892 Ameriprise Financial, Inc.......................... 1,150 122,383 Artisan Partners Asset Management, Inc. -- Class A. 250 9,015 Bank of New York Mellon Corp. (The)................ 850 35,037 BlackRock, Inc. -- Class A......................... 360 122,587 Charles Schwab Corp. (The)......................... 6,250 205,812 Eaton Vance Corp................................... 850 27,565 Federated Investors, Inc. -- Class B............... 650 18,623 Interactive Brokers Group, Inc. -- Class A......... 50 2,180 Invesco Ltd........................................ 400 13,392 Lazard Ltd. -- Class A............................. 900 40,509 Legg Mason, Inc.................................... 150 5,885 LPL Financial Holdings, Inc........................ 544 23,202 NorthStar Asset Management Group, Inc./New York.... 1,497 18,174 SEI Investments Co................................. 1,000 52,400 T Rowe Price Group, Inc............................ 1,950 139,405 TD Ameritrade Holding Corp......................... 1,750 60,742 Waddell & Reed Financial, Inc. -- Class A.......... 550 15,763 ---------- 984,566 ---------- CONSUMER FINANCE -- 0.2% Ally Financial, Inc./(a)/.......................... 250 4,660 American Express Co................................ 1,287 89,511
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- CONSUMER FINANCE (CONTINUED) Credit Acceptance Corp./(a)/................. 100 $ 21,402 LendingClub Corp./(a)/....................... 508 5,613 Santander Consumer USA Holdings, Inc./(a)/... 7 111 SLM Corp./(a)/............................... 3,000 19,560 ---------- 140,857 ---------- DIVERSIFIED FINANCIAL SERVICES -- 0.9% Berkshire Hathaway, Inc. -- Class B/(a)/..... 900 118,836 CBOE Holdings, Inc........................... 660 42,834 FactSet Research Systems, Inc................ 360 58,525 Intercontinental Exchange, Inc............... 350 89,691 Leucadia National Corp....................... 250 4,348 McGraw Hill Financial, Inc................... 2,150 211,947 Moody's Corp................................. 1,350 135,459 MSCI, Inc. -- Class A........................ 800 57,704 ---------- 719,344 ---------- INSURANCE -- 0.5% AmTrust Financial Services, Inc.............. 50 3,079 Aon PLC...................................... 2,200 202,862 Arthur J Gallagher & Co...................... 650 26,611 Erie Indemnity Co. -- Class A................ 200 19,128 Markel Corp./(a)/............................ 58 51,234 Marsh & McLennan Cos., Inc................... 2,450 135,853 ---------- 438,767 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) -- 2.4% American Tower Corp.......................... 3,290 318,965 Boston Properties, Inc....................... 1,050 133,917 Columbia Property Trust, Inc................. 100 2,348 Crown Castle International Corp.............. 2,623 226,758 Digital Realty Trust, Inc.................... 550 41,591 Empire State Realty Trust, Inc. -- Class A... 400 7,228 Equinix, Inc................................. 494 149,386 Equity LifeStyle Properties, Inc............. 600 40,002 Extra Space Storage, Inc..................... 930 82,035 Federal Realty Investment Trust.............. 550 80,355 Four Corners Property Trust, Inc./(a)/....... 66 1,595 Gaming and Leisure Properties, Inc........... 50 1,390 Healthcare Trust of America, Inc. -- Class A. 100 2,697 Iron Mountain, Inc........................... 570 15,396 Lamar Advertising Co. -- Class A............. 550 32,989 Omega Healthcare Investors, Inc.............. 300 10,494 Plum Creek Timber Co., Inc................... 470 22,428 Post Properties, Inc......................... 50 2,958 Public Storage............................... 1,020 252,654 Simon Property Group, Inc.................... 2,389 464,517 Tanger Factory Outlet Centers, Inc........... 670 21,909 Taubman Centers, Inc......................... 200 15,344 Welltower, Inc............................... 1,200 81,636 Weyerhaeuser Co.............................. 250 7,495 ---------- 2,016,087 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.2% CBRE Group, Inc. -- Class A/(a)/............. 2,120 73,310 Howard Hughes Corp. (The)/(a)/............... 150 16,974 Jones Lang LaSalle, Inc...................... 300 47,958 Realogy Holdings Corp./(a)/.................. 400 14,668 ---------- 152,910 ---------- Total Financials............................. 4,543,604 ----------
FSA-24 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- MATERIALS -- 3.5% CHEMICALS -- 2.9% Air Products & Chemicals, Inc............ 1,350 $ 175,648 Airgas, Inc.............................. 100 13,832 Ashland, Inc............................. 50 5,135 Axalta Coating Systems Ltd./(a)/......... 687 18,309 Celanese Corp. -- Series A............... 100 6,733 CF Industries Holdings, Inc.............. 1,800 73,458 Chemours Co. (The)....................... 560 3,002 Dow Chemical Co. (The)................... 1,100 56,628 Eastman Chemical Co...................... 206 13,907 Ecolab, Inc.............................. 2,006 229,446 EI du Pont de Nemours & Co............... 3,250 216,450 FMC Corp................................. 750 29,347 Huntsman Corp............................ 950 10,802 International Flavors & Fragrances, Inc.. 650 77,766 LyondellBasell Industries NV -- Class A.. 2,950 256,355 Monsanto Co.............................. 3,623 356,938 NewMarket Corp........................... 100 38,073 Platform Specialty Products Corp./(a)/... 150 1,925 PPG Industries, Inc...................... 2,150 212,463 Praxair, Inc............................. 1,900 194,560 RPM International, Inc................... 950 41,857 Scotts Miracle-Gro Co. (The) -- Class A.. 300 19,353 Sherwin-Williams Co. (The)............... 700 181,720 Valspar Corp. (The)...................... 650 53,917 WR Grace & Co./(a)/...................... 600 59,754 ---------- 2,347,378 ---------- CONSTRUCTION MATERIALS -- 0.1% Eagle Materials, Inc..................... 300 18,129 Martin Marietta Materials, Inc........... 100 13,658 Vulcan Materials Co...................... 150 14,246 ---------- 46,033 ---------- CONTAINERS & PACKAGING -- 0.4% AptarGroup, Inc.......................... 100 7,265 Avery Dennison Corp...................... 600 37,596 Ball Corp................................ 1,050 76,366 Bemis Co., Inc........................... 50 2,235 Crown Holdings, Inc./(a)/................ 400 20,280 Graphic Packaging Holding Co............. 1,450 18,603 Owens-Illinois, Inc./(a)/................ 50 871 Packaging Corp. of America............... 700 44,135 Sealed Air Corp.......................... 1,600 71,360 Silgan Holdings, Inc..................... 300 16,116 WestRock Co.............................. 100 4,562 ---------- 299,389 ---------- METALS & MINING -- 0.0% Compass Minerals International, Inc...... 250 18,817 Royal Gold, Inc.......................... 50 1,824 Southern Copper Corp..................... 268 7,000 Steel Dynamics, Inc...................... 200 3,574 Tahoe Resources, Inc..................... 150 1,301 ---------- 32,516 ---------- PAPER & FOREST PRODUCTS -- 0.1% International Paper Co................... 3,050 114,985 ---------- Total Materials.......................... 2,840,301 ----------
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 2.0% DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.9% AT&T, Inc................................... 6,939 $ 238,771 Level 3 Communications, Inc./(a)/........... 177 9,622 Verizon Communications, Inc................. 29,300 1,354,246 Zayo Group Holdings, Inc./(a)/.............. 875 23,266 ----------- 1,625,905 ----------- WIRELESS TELECOMMUNICATION SERVICES -- 0.1% SBA Communications Corp. -- Class A/(a)/.... 450 47,282 ----------- Total Telecommunication Services............ 1,673,187 ----------- ENERGY -- 0.5% ENERGY EQUIPMENT & SERVICES -- 0.1% FMC Technologies, Inc./(a)/................. 1,100 31,911 Oceaneering International, Inc.............. 100 3,752 RPC, Inc.................................... 50 597 Schlumberger Ltd............................ 1,140 79,515 ----------- 115,775 ----------- OIL, GAS & CONSUMABLE FUELS -- 0.4% Cabot Oil & Gas Corp........................ 3,200 56,608 Continental Resources, Inc./OK/(a)/......... 200 4,596 CVR Energy, Inc............................. 50 1,967 EOG Resources, Inc.......................... 300 21,237 Fitbit, Inc./(a)/........................... 186 5,504 HollyFrontier Corp.......................... 200 7,978 Marathon Petroleum Corp..................... 300 15,552 Memorial Resource Development Corp./(a)/.... 638 10,304 ONEOK, Inc.................................. 650 16,029 Range Resources Corp........................ 50 1,231 Targa Resources Corp........................ 200 5,412 Teekay Corp................................. 100 987 Tesoro Corp................................. 50 5,268 Williams Cos., Inc. (The)................... 5,747 147,698 World Fuel Services Corp.................... 100 3,846 ----------- 304,217 ----------- Total Energy................................ 419,992 ----------- UTILITIES -- 0.0% ELECTRIC UTILITIES -- 0.0% ITC Holdings Corp........................... 350 13,737 ----------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.0% Calpine Corp./(a)/.......................... 250 3,618 TerraForm Power, Inc. -- Class A/(a)/....... 50 629 ----------- 4,247 ----------- MULTI-UTILITIES -- 0.0% Dominion Resources, Inc./VA................. 150 10,146 ----------- Total Utilities............................. 28,130 ----------- TOTAL INVESTMENTS -- 99.5% (cost $51,075,617)......................... 82,017,887 Other assets less liabilities -- 0.5%....... 452,607 ----------- NET ASSETS -- 100.0% $82,470,494 ===========
FSA-25 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015 FUTURES CONTRACTS
NUMBER OF EXPIRATION ORIGINAL VALUE AT UNREALIZED TYPE CONTRACTS MONTH VALUE DECEMBER 31, 2015 (DEPRECIATION) ---- --------- ---------- -------- ----------------- -------------- PURCHASED CONTRACTS S&P 500 Index Mini.. 3 March 2016 $306,418 $305,310 $(1,108)
----------- (a)Non-income producing security. (b)Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. Glossary: CBOE -- Chicago Board Options Exchange MSCI -- Morgan Stanley Capital International REIT -- Real Estate Investment Trust The accompanying notes are an integral part of these financial statements. FSA-26 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 99.4% United States 0.4% Singapore 0.2% United Kingdom ---- 100.0% ====== ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of long-term investments and may vary over time. The accompanying notes are an integral part of these financial statements FSA-27 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $21,613,489)......... $22,192,841 Cash......................................................... 1,317,206 Interest and dividends receivable............................ 4,147 Fees receivable from contractowners.......................... 36,825 ----------- Total assets.............................................. 23,551,019 ----------- LIABILITIES: Payable for investments securities purchased................. 211,365 Due to AXA Equitable's General Account....................... 73,092 Accrued custody and bank fees................................ 3,375 Administrative fees payable.................................. 30 Asset management fee payable................................. 49,062 Accrued expenses............................................. 3,301 ----------- Total liabilities......................................... 340,225 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION. $23,210,794 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 14 $58,395.05 RIA........... 2,527 524.03 MRP........... 197,116 106.93
----------- The accompanying notes are an integral part of these financial statements. FSA-28 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends.................................................. $ 110,545 ----------- Total investment income................................... 110,545 ----------- EXPENSES (NOTE 6): Investment management fees................................. (157,441) Custody and bank fees...................................... (2,893) Other operating expenses................................... (6,219) ----------- Total expenses............................................ (166,553) ----------- NET INVESTMENT INCOME (LOSS)................................. (56,008) ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2): Net realized gain from investments......................... 1,846,639 Change in unrealized depreciation of investments........... (1,461,861) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.............. 384,778 ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS........ $ 328,770 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-29 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment loss............................................................... $ (56,008) $ (38,947) Net realized gain on investments.................................................. 1,846,639 3,423,597 Net change in unrealized depreciation of investments.............................. (1,461,861) (2,886,253) ----------- ----------- Net increase in net assets attributable to operations............................ 328,770 498,397 ----------- ----------- FROM CONTRACTOWNER TRANSACTIONS: Contributions..................................................................... 1,461,095 1,857,031 Withdrawals....................................................................... (4,299,910) (4,311,700) Asset management fees (Note 6).................................................... (84,564) (89,443) Administrative fees (Note 6)...................................................... (190,502) (228,309) ----------- ----------- Net decrease in net assets attributable to contractowner transactions............ (3,113,881) (2,772,421) ----------- ----------- DECREASE IN NET ASSETS.............................................................. (2,785,111) (2,274,024) NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD. 25,995,905 28,269,929 ----------- ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD....... $23,210,794 $25,995,905 =========== ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-30 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ COMMON STOCKS -- 95.6% CONSUMER DISCRETIONARY -- 26.9% AUTO PARTS -- 0.9% Mobileye NV/(a)/.................................... 4,880 $ 206,326 ---------- CABLE TELEVISION SERVICES -- 1.8% AMC Networks, Inc. -- Class A/(a)/.................. 5,479 409,172 ---------- CONSUMER SERVICES: MISC. -- 1.0% Liberty Ventures -- Series A/(a)/................... 4,960 223,746 ---------- DIVERSIFIED MEDIA -- 0.6% Liberty Media Corp. -- Class C/(a)/................. 3,844 146,380 ---------- DIVERSIFIED RETAIL -- 4.8% Dollar General Corp................................. 5,740 412,534 Dollar Tree, Inc./(a)/.............................. 6,060 467,953 Liberty Interactive Corp. QVC Group -- Class A/(a)/. 8,660 236,591 ---------- 1,117,078 ---------- EDUCATION SERVICES -- 1.5% Bright Horizons Family Solutions, Inc............... 5,350 357,380 ---------- HOTEL/MOTEL -- 1.7% Wyndham Worldwide Corp.............................. 5,350 388,677 ---------- HOUSEHOLD FURNISHINGS -- 1.2% Tempur Sealy International, Inc./(a)/............... 3,960 279,022 ---------- LEISURE TIME -- 4.6% Expedia, Inc........................................ 4,106 510,342 Liberty TripAdvisor Holdings, Inc./(a)/............. 9,240 280,342 Norwegian Cruise Line Holdings Ltd./(a)/............ 4,950 290,070 ---------- 1,080,754 ---------- RADIO & TV BROADCASTERS -- 0.8% Pandora Media, Inc./(a)/............................ 13,730 184,119 ---------- RESTAURANTS -- 1.1% Buffalo Wild Wings, Inc./(a)/....................... 1,550 247,457 ---------- SPECIALTY RETAIL -- 6.9% O'Reilly Automotive, Inc./(a)/...................... 1,430 362,391 Ross Stores, Inc.................................... 8,100 435,861 Tractor Supply Co................................... 4,840 413,820 Ulta Salon Cosmetics & Fragrance, Inc./(a)/......... 2,180 403,300 ---------- 1,615,372 ---------- Total Consumer Discretionary........................ 6,255,483 ---------- TECHNOLOGY -- 16.4% COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 13.8% ANSYS, Inc./(a)/.................................... 3,489 322,733 Aspen Technology, Inc./(a)/......................... 5,596 211,305 F5 Networks, Inc./(a)/.............................. 1,900 184,224 Fortinet, Inc./(a)/................................. 7,810 243,438 Guidewire Software, Inc./(a)/....................... 4,840 291,174 NetSuite, Inc./(a)/................................. 2,360 199,703 Palo Alto Networks, Inc./(a)/....................... 1,730 304,722 ServiceNow, Inc./(a)/............................... 3,640 315,078 Tableau Software, Inc. -- Class A/(a)/.............. 3,150 296,793 Twitter, Inc./(a)/.................................. 13,530 313,084 Ultimate Software Group, Inc. (The)/(a)/............ 1,180 230,702 VeriFone Systems, Inc./(a)/......................... 10,430 292,249 ---------- 3,205,205 ----------
COMPANY SHARES U.S. $ VALUE --------------------------------------------------------------------- COMPUTER TECHNOLOGY -- 1.2% SanDisk Corp..................................... 3,570 $ 271,284 ---------- ELECTRONIC ENTERTAINMENT -- 1.4% Activision Blizzard, Inc......................... 8,459 327,448 ---------- Total Technology................................. 3,803,937 ---------- HEALTH CARE -- 15.9% BIOTECHNOLOGY -- 1.0% Medivation, Inc./(a)/............................ 4,620 223,331 ---------- HEALTH CARE SERVICES -- 3.7% Acadia Healthcare Co., Inc./(a)/................. 4,580 286,067 Premier, Inc. -- Class A/(a)/.................... 11,069 390,403 Team Health Holdings, Inc./(a)/.................. 4,090 179,510 ---------- 855,980 ---------- MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 3.8% Align Technology, Inc./(a)/...................... 7,315 481,693 Edwards Lifesciences Corp./(a)/.................. 5,200 410,696 ---------- 892,389 ---------- MEDICAL EQUIPMENT -- 3.9% DexCom, Inc./(a)/................................ 3,400 278,460 Intuitive Surgical, Inc./(a)/.................... 1,174 641,192 ---------- 919,652 ---------- PHARMACEUTICALS -- 3.5% Akorn, Inc....................................... 8,150 304,077 Diplomat Pharmacy, Inc./(a)/..................... 7,820 267,600 Jazz Pharmaceuticals PLC/(a)/.................... 1,650 231,924 ---------- 803,601 ---------- Total Health Care................................ 3,694,953 ---------- PRODUCER DURABLES -- 15.6 % AIR TRANSPORT -- 1.0% Spirit Airlines, Inc./(a)/....................... 5,570 221,965 ---------- BACK OFFICE SUPPORT, HR & CONSULTING -- 3.8% CoStar Group, Inc./(a)/.......................... 2,120 438,183 Robert Half International, Inc................... 9,630 453,958 ---------- 892,141 ---------- DIVERSIFIED MANUFACTURING OPERATIONS -- 1.5% Carlisle Cos., Inc............................... 3,930 348,552 ---------- MACHINERY: INDUSTRIAL -- 1.8% Middleby Corp. (The)/(a)/........................ 3,860 416,378 ---------- MACHINERY: TOOLS -- 1.6% Snap-on, Inc..................................... 2,212 379,203 ---------- RAILROAD EQUIPMENT -- 0.8% Wabtec Corp./DE.................................. 2,570 182,778 ---------- SCIENTIFIC INSTRUMENTS: CONTROL & FILTER -- 1.5% IDEX Corp........................................ 4,430 339,382 ---------- SCIENTIFIC INSTRUMENTS: ELECTRICAL -- 1.4% AMETEK, Inc...................................... 6,290 337,081 ---------- SHIPPING -- 1.0% Kirby Corp./(a)/................................. 4,470 235,212 ---------- TRUCKERS -- 1.2% Old Dominion Freight Line, Inc./(a)/............. 4,740 279,992 ---------- Total Producer Durables.......................... 3,632,684 ----------
FSA-31 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------ FINANCIAL SERVICES -- 12.9% ASSET MANAGEMENT & CUSTODIAN -- 2.7% Affiliated Managers Group, Inc./(a)/.... 2,165 $ 345,880 SEI Investments Co...................... 5,450 285,580 ----------- 631,460 ----------- BANKS: DIVERSIFIED -- 1.8% First Republic Bank/CA.................. 3,080 203,465 SVB Financial Group/(a)/................ 1,770 210,453 ----------- 413,918 ----------- DIVERSIFIED FINANCIAL SERVICES -- 1.4% Virtu Financial, Inc. -- Class A........ 14,415 326,356 ----------- FINANCIAL DATA & SYSTEMS -- 5.8% Alliance Data Systems Corp./(a)/........ 1,720 475,700 Moody's Corp............................ 4,730 474,608 Vantiv, Inc. -- Class A/(a)/............ 8,400 398,328 ----------- 1,348,636 ----------- SECURITIES BROKERAGE & SERVICES -- 1.2% Intercontinental Exchange, Inc.......... 1,076 275,736 ----------- Total Financial Services................ 2,996,106 ----------- CONSUMER STAPLES -- 3.0% BEVERAGE: SOFT DRINKS -- 2.4% Monster Beverage Corp./(a)/............. 3,800 566,048 ----------- FOODS -- 0.6% Mead Johnson Nutrition Co. -- Class A... 1,600 126,320 ----------- Total Consumer Staples.................. 692,368 ----------- MATERIALS & PROCESSING -- 2.2% CHEMICALS: DIVERSIFIED -- 0.9% PolyOne Corp............................ 6,730 213,745 ----------- DIVERSIFIED MATERIALS & PROCESSING -- 1.3% Hexcel Corp............................. 6,370 295,886 ----------- Total Materials & Processing............ 509,631 ----------- UTILITIES -- 1.6% UTILITIES: TELECOMMUNICATIONS -- 1.6% Level 3 Communications, Inc./(a)/....... 6,651 361,548 ----------- ENERGY -- 1.1% OIL WELL EQUIPMENT & SERVICES -- 1.1% Oceaneering International, Inc.......... 6,560 246,131 ----------- Total Common Stocks (cost $21,613,489)..................... 22,192,841 ----------- TOTAL INVESTMENTS -- 95.6% (cost/amortized cost $21,613,489)..... 22,192,841 Other assets less liabilities -- 4.4%... 1,017,953 ----------- NET ASSETS -- 100.0% $23,210,794 ===========
----------- (a)Non-income producing security. The accompanying notes are an integral part of these financial statements. FSA-32 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 100.0 % United States ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of each Portfolio's long-term investments and may vary over time. The accompanying notes are an integral part of these financial statements. FSA-33 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2015
ALL ASSET ALL ASSET ALL ASSET GROWTH- MODERATE GROWTH- AXA AGGRESSIVE AGGRESSIVE-ALT 25* ALT 20* ALT 15* ALLOCATION* ------------------ ----------------- ---------------- -------------- ASSETS: Investments in shares of the Portfolios, at fair value. $75,229 $74,722 $7,328 $2,569,826 Receivable for policy-related transactions............. 356 -- -- 1,290 ------- ------- ------ ---------- Total assets........................................ 75,585 74,722 7,328 2,571,116 ------- ------- ------ ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 355 -- -- 1,290 Payable for direct operating expenses.................. 5 13 -- 387 ------- ------- ------ ---------- Total liabilities................................... 360 13 -- 1,677 ------- ------- ------ ---------- NET ASSETS............................................. $75,225 $74,709 $7,328 $2,569,439 ======= ======= ====== ========== NET ASSETS: Accumulation unit values............................... $75,225 $74,709 $7,325 $2,569,303 Retained by AXA Equitable in Separate Account No. 66... -- -- 3 136 ------- ------- ------ ---------- TOTAL NET ASSETS....................................... $75,225 $74,709 $7,328 $2,569,439 ======= ======= ====== ========== Investments in shares of the Portfolios, at cost....... $78,487 $81,317 $7,808 $2,673,074 The Portfolios shares held Class B............................................. 6,776 4,179 701 250,815
AXA CONSERVATIVE AXA CONSERVATIVE- ALLOCATION* PLUS ALLOCATION* ---------------- ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,273,348 $1,076,876 Receivable for policy-related transactions............. 8,457 2,506 ---------- ---------- Total assets........................................ 1,281,805 1,079,382 ---------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 8,457 2,506 Payable for direct operating expenses.................. 220 166 ---------- ---------- Total liabilities................................... 8,677 2,672 ---------- ---------- NET ASSETS............................................. $1,273,128 $1,076,710 ========== ========== NET ASSETS: Accumulation unit values............................... $1,273,106 $1,076,534 Retained by AXA Equitable in Separate Account No. 66... 22 176 ---------- ---------- TOTAL NET ASSETS....................................... $1,273,128 $1,076,710 ========== ========== Investments in shares of the Portfolios, at cost....... $1,326,713 $1,148,167 The Portfolios shares held Class B............................................. 137,054 113,776
----------- 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-34 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
AXA GLOBAL EQUITY AXA INTERNATIONAL AXA INTERNATIONAL AXA LARGE CAP MANAGED CORE MANAGED VALUE MANAGED GROWTH MANAGED VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY* ----------------- ----------------- ----------------- -------------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,606,836 $1,856,005 $50,663 $3,328,685 Receivable for shares of the Portfolios sold........... 4,067 -- 42 10,734 Receivable for policy-related transactions............. -- 3,320 -- -- ---------- ---------- ------- ---------- Total assets........................................ 1,610,903 1,859,325 50,705 3,339,419 ---------- ---------- ------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 3,320 -- -- Payable for policy-related transactions................ 4,067 -- 40 9,575 Payable for direct operating expenses.................. 269 359 -- 564 ---------- ---------- ------- ---------- Total liabilities................................... 4,336 3,679 40 10,139 ---------- ---------- ------- ---------- NET ASSETS............................................. $1,606,567 $1,855,646 $50,665 $3,329,280 ========== ========== ======= ========== NET ASSETS: Accumulation unit values............................... $1,605,873 $1,855,333 $50,665 $3,325,450 Retained by AXA Equitable in Separate Account No. 66... 694 313 -- 3,830 ---------- ---------- ------- ---------- TOTAL NET ASSETS....................................... $1,606,567 $1,855,646 $50,665 $3,329,280 ========== ========== ======= ========== Investments in shares of the Portfolios, at cost....... $1,476,897 $1,865,001 $52,397 $2,565,602 The Portfolios shares held Class A............................................. -- -- -- -- Class B............................................. 111,124 203,403 4,401 124,248
AXA LARGE CAP VALUE MANAGED VOLATILITY* ------------- ASSETS: Investments in shares of the Portfolios, at fair value. $8,839,193 Receivable for shares of the Portfolios sold........... 82,293 Receivable for policy-related transactions............. -- ---------- Total assets........................................ 8,921,486 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- Payable for policy-related transactions................ 82,280 Payable for direct operating expenses.................. 1,357 ---------- Total liabilities................................... 83,637 ---------- NET ASSETS............................................. $8,837,849 ========== NET ASSETS: Accumulation unit values............................... $8,835,296 Retained by AXA Equitable in Separate Account No. 66... 2,553 ---------- TOTAL NET ASSETS....................................... $8,837,849 ========== Investments in shares of the Portfolios, at cost....... $6,348,563 The Portfolios shares held Class A............................................. 48,001 Class B............................................. 545,363
----------- 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-35 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
AXA MID CAP VALUE MANAGED AXA MODERATE AXA MODERATE-PLUS AXA/AB SMALL CAP VOLATILITY* ALLOCATION* ALLOCATION* GROWTH* ------------- ------------ ----------------- ---------------- ASSETS: Investments in shares of the Portfolios, at fair value. $7,702,296 $18,965,219 $1,553,724 $556,843 Receivable for shares of the Portfolios sold........... 88,242 -- -- -- Receivable for policy-related transactions............. -- 32,768 6,851 230 ---------- ----------- ---------- -------- Total assets........................................ 7,790,538 18,997,987 1,560,575 557,073 ---------- ----------- ---------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 32,730 6,851 230 Payable for policy-related transactions................ 88,233 -- -- -- Payable for direct operating expenses.................. 1,310 2,880 208 55 ---------- ----------- ---------- -------- Total liabilities................................... 89,543 35,610 7,059 285 ---------- ----------- ---------- -------- NET ASSETS............................................. $7,700,995 $18,962,377 $1,553,516 $556,788 ========== =========== ========== ======== NET ASSETS: Accumulation unit values............................... $7,699,781 $18,961,325 $1,553,409 $556,685 Retained by AXA Equitable in Separate Account No. 66... 1,214 1,052 107 103 ---------- ----------- ---------- -------- TOTAL NET ASSETS....................................... $7,700,995 $18,962,377 $1,553,516 $556,788 ========== =========== ========== ======== Investments in shares of the Portfolios, at cost....... $6,034,535 $19,615,673 $1,632,846 $648,606 The Portfolios shares held Class A............................................. -- -- -- 10,688 Class B............................................. 526,924 1,422,650 149,638 23,087
CHARTER/SM/ CHARTER/SM/ MULTI-SECTOR SMALL CAP BOND* VALUE* ------------ ---------- ASSETS: Investments in shares of the Portfolios, at fair value. $929,108 $59,405 Receivable for shares of the Portfolios sold........... -- 58 Receivable for policy-related transactions............. 6,526 -- -------- ------- Total assets........................................ 935,634 59,463 -------- ------- LIABILITIES: Payable for shares of the Portfolios purchased......... 6,526 -- Payable for policy-related transactions................ -- 55 Payable for direct operating expenses.................. 137 -- -------- ------- Total liabilities................................... 6,663 55 -------- ------- NET ASSETS............................................. $928,971 $59,408 ======== ======= NET ASSETS: Accumulation unit values............................... $928,933 $59,408 Retained by AXA Equitable in Separate Account No. 66... 38 -- -------- ------- TOTAL NET ASSETS....................................... $928,971 $59,408 ======== ======= Investments in shares of the Portfolios, at cost....... $975,505 $45,183 The Portfolios shares held Class A............................................. 11 -- Class B............................................. 248,062 4,488
----------- 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-36 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/BOSTON EQ/CALVERT EQ/CAPITAL EQ/BLACKROCK ADVISORS EQUITY SOCIALLY GUARDIAN EQ/EQUITY BASIC VALUE EQUITY* INCOME* RESPONSIBLE* RESEARCH* 500 INDEX* ------------------- --------------- ------------ ---------- ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $77,640 $333,411 $2,257,871 $7,183,769 $23,295,700 Receivable for shares of the Portfolios sold........... 73 -- 3,598 42,348 185,810 Receivable for policy-related transactions............. -- 543 -- -- -- ------- -------- ---------- ---------- ----------- Total assets........................................ 77,713 333,954 2,261,469 7,226,117 23,481,510 ------- -------- ---------- ---------- ----------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 543 -- -- -- Payable for policy-related transactions................ 73 -- 3,598 42,348 185,800 Payable for direct operating expenses.................. -- 44 386 1,158 3,645 ------- -------- ---------- ---------- ----------- Total liabilities................................... 73 587 3,984 43,506 189,445 ------- -------- ---------- ---------- ----------- NET ASSETS............................................. $77,640 $333,367 $2,257,485 $7,182,611 $23,292,065 ======= ======== ========== ========== =========== NET ASSETS: Accumulation unit values............................... $77,635 $333,353 $2,257,366 $7,181,136 $23,287,907 Retained by AXA Equitable in Separate Account No. 66... 5 14 119 1,475 4,158 ------- -------- ---------- ---------- ----------- TOTAL NET ASSETS....................................... $77,640 $333,367 $2,257,485 $7,182,611 $23,292,065 ======= ======== ========== ========== =========== Investments in shares of the Portfolios, at cost....... $67,437 $368,375 $1,988,852 $4,584,714 $16,752,943 The Portfolios shares held Class A............................................. -- -- -- -- 27,078 Class B............................................. 3,891 57,370 206,375 340,516 651,648
EQ/GAMCO MERGERS AND ACQUISITIONS* ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $129,020 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 80 -------- Total assets........................................ 129,100 -------- LIABILITIES: Payable for shares of the Portfolios purchased......... 80 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 18 -------- Total liabilities................................... 98 -------- NET ASSETS............................................. $129,002 ======== NET ASSETS: Accumulation unit values............................... $128,995 Retained by AXA Equitable in Separate Account No. 66... 7 -------- TOTAL NET ASSETS....................................... $129,002 ======== Investments in shares of the Portfolios, at cost....... $135,715 The Portfolios shares held Class A............................................. -- Class B............................................. 10,249
----------- 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-37 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/GAMCO SMALL EQ/INTERMEDIATE EQ/INTERNATIONAL EQ/JPMORGAN VALUE COMPANY VALUE* GOVERNMENT BOND* EQUITY INDEX* OPPORTUNITIES* -------------- ---------------- ---------------- ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $2,785,708 $3,935,795 $9,900,962 $152,642 Receivable for shares of the Portfolios sold........... -- -- 23,748 157 Receivable for policy-related transactions............. 8,155 7,399 -- -- ---------- ---------- ---------- -------- Total assets........................................ 2,793,863 3,943,194 9,924,710 152,799 ---------- ---------- ---------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... 8,155 7,310 -- -- Payable for policy-related transactions................ -- -- 23,749 157 Payable for direct operating expenses.................. 464 614 1,644 -- ---------- ---------- ---------- -------- Total liabilities................................... 8,619 7,924 25,393 157 ---------- ---------- ---------- -------- NET ASSETS............................................. $2,785,244 $3,935,270 $9,899,317 $152,642 ========== ========== ========== ======== NET ASSETS: Accumulation unit values............................... $2,785,019 $3,935,270 $9,898,935 $152,585 Retained by AXA Equitable in Separate Account No. 66... 225 -- 382 57 ---------- ---------- ---------- -------- TOTAL NET ASSETS....................................... $2,785,244 $3,935,270 $9,899,317 $152,642 ========== ========== ========== ======== Investments in shares of the Portfolios, at cost....... $2,784,200 $3,969,114 $9,627,105 $ 93,874 The Portfolios shares held Class A............................................. -- 1 1,176,505 -- Class B............................................. 56,458 385,200 -- 9,884
EQ/MFS EQ/LARGE CAP INTERNATIONAL GROWTH INDEX* GROWTH* ------------- ------------- ASSETS: Investments in shares of the Portfolios, at fair value. $523,030 $377,728 Receivable for shares of the Portfolios sold........... 1,620 -- Receivable for policy-related transactions............. -- 1,841 -------- -------- Total assets........................................ 524,650 379,569 -------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 1,840 Payable for policy-related transactions................ 1,620 -- Payable for direct operating expenses.................. 53 60 -------- -------- Total liabilities................................... 1,673 1,900 -------- -------- NET ASSETS............................................. $522,977 $377,669 ======== ======== NET ASSETS: Accumulation unit values............................... $522,967 $377,669 Retained by AXA Equitable in Separate Account No. 66... 10 -- -------- -------- TOTAL NET ASSETS....................................... $522,977 $377,669 ======== ======== Investments in shares of the Portfolios, at cost....... $572,814 $412,604 The Portfolios shares held Class A............................................. -- -- Class B............................................. 45,486 57,823
----------- 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-38 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/MID CAP EQ/MONEY EQ/MORGAN STANLEY EQ/PIMCO ULTRA EQ/QUALITY INDEX* MARKET* MID CAP GROWTH* SHORT BOND* BOND PLUS* ---------- ----------- ----------------- -------------- ---------- ASSETS: Investments in shares of the Portfolios, at fair value. $649,150 $13,821,483 $133,090 $2,079,526 $7,069 Receivable for shares of the Portfolios sold........... -- 12,188 -- -- 8 Receivable for policy-related transactions............. 557 -- 180 8,201 -- -------- ----------- -------- ---------- ------ Total assets........................................ 649,707 13,833,671 133,270 2,087,727 7,077 -------- ----------- -------- ---------- ------ LIABILITIES: Payable for shares of the Portfolios purchased......... 557 -- 180 8,195 -- Payable for policy-related transactions................ -- 12,861 -- -- 8 Payable for direct operating expenses.................. 66 2,238 19 362 -- -------- ----------- -------- ---------- ------ Total liabilities................................... 623 15,099 199 8,557 8 -------- ----------- -------- ---------- ------ NET ASSETS............................................. $649,084 $13,818,572 $133,071 $2,079,170 $7,069 ======== =========== ======== ========== ====== NET ASSETS: Accumulation unit values............................... $647,989 $13,818,572 $133,071 $2,079,170 $7,022 Retained by AXA Equitable in Separate Account No. 66... 1,095 -- -- -- 47 -------- ----------- -------- ---------- ------ TOTAL NET ASSETS....................................... $649,084 $13,818,572 $133,071 $2,079,170 $7,069 ======== =========== ======== ========== ====== Investments in shares of the Portfolios, at cost....... $651,397 $13,821,732 $145,612 $2,110,918 $7,101 The Portfolios shares held Class A............................................. -- 539 -- -- 835 Class B............................................. 50,756 13,821,124 8,195 212,427 --
EQ/SMALL COMPANY INDEX* ---------------- ASSETS: Investments in shares of the Portfolios, at fair value. $4,399,826 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 2,008 ---------- Total assets........................................ 4,401,834 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 2,008 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 785 ---------- Total liabilities................................... 2,793 ---------- NET ASSETS............................................. $4,399,041 ========== NET ASSETS: Accumulation unit values............................... $4,398,651 Retained by AXA Equitable in Separate Account No. 66... 390 ---------- TOTAL NET ASSETS....................................... $4,399,041 ========== Investments in shares of the Portfolios, at cost....... $4,680,948 The Portfolios shares held Class A............................................. -- Class B............................................. 435,142
----------- 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-39 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER TARGET 2015 GROWTH STOCK* OMEGA GROWTH* CORE BOND* TECHNOLOGY* ALLOCATION* ---------------- -------------- ------------ ------------ ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $421,956 $456,276 $1,629,224 $4,564,723 $2,063,326 Receivable for shares of the Portfolios sold........... -- -- -- 5,861 -- Receivable for policy-related transactions............. 210 206 540 -- 250 -------- -------- ---------- ---------- ---------- Total assets........................................ 422,166 456,482 1,629,764 4,570,584 2,063,576 -------- -------- ---------- ---------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 210 206 540 -- 250 Payable for policy-related transactions................ -- -- -- 5,861 -- Payable for direct operating expenses.................. 53 34 177 685 371 -------- -------- ---------- ---------- ---------- Total liabilities................................... 263 240 717 6,546 621 -------- -------- ---------- ---------- ---------- NET ASSETS............................................. $421,903 $456,242 $1,629,047 $4,564,038 $2,062,955 ======== ======== ========== ========== ========== NET ASSETS: Accumulation unit values............................... $421,499 $456,188 $1,628,845 $4,563,064 $2,062,927 Retained by AXA Equitable in Separate Account No. 66... 404 54 202 974 28 -------- -------- ---------- ---------- ---------- TOTAL NET ASSETS....................................... $421,903 $456,242 $1,629,047 $4,564,038 $2,062,955 ======== ======== ========== ========== ========== Investments in shares of the Portfolios, at cost....... $420,096 $496,923 $1,665,020 $3,948,468 $2,300,551 The Portfolios shares held Class B............................................. 11,055 43,760 166,951 233,958 243,587
TARGET 2025 ALLOCATION* ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $2,578,717 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 648 ---------- Total assets........................................ 2,579,365 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 648 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 410 ---------- Total liabilities................................... 1,058 ---------- NET ASSETS............................................. $2,578,307 ========== NET ASSETS: Accumulation unit values............................... $2,578,127 Retained by AXA Equitable in Separate Account No. 66... 180 ---------- TOTAL NET ASSETS....................................... $2,578,307 ========== Investments in shares of the Portfolios, at cost....... $2,812,435 The Portfolios shares held Class B............................................. 273,840
----------- 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 NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED) DECEMBER 31, 2015
TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION* ALLOCATION* ALLOCATION* ----------- ----------- ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,645,813 $1,333,295 $32,530 Receivable for shares of the Portfolios sold........... -- 26,497 -- Receivable for policy-related transactions............. 17,502 -- 140 ---------- ---------- ------- Total assets........................................ 1,663,315 1,359,792 32,670 ---------- ---------- ------- LIABILITIES: Payable for shares of the Portfolios purchased......... 17,502 -- 138 Payable for policy-related transactions................ -- 26,497 -- Payable for direct operating expenses.................. 241 190 3 ---------- ---------- ------- Total liabilities................................... 17,743 26,687 141 ---------- ---------- ------- NET ASSETS............................................. $1,645,572 $1,333,105 $32,529 ========== ========== ======= NET ASSETS: Accumulation unit values............................... $1,645,532 $1,333,056 $32,529 Retained by AXA Equitable in Separate Account No. 66... 40 49 -- ---------- ---------- ------- TOTAL NET ASSETS....................................... $1,645,572 $1,333,105 $32,529 ========== ========== ======= Investments in shares of the Portfolios, at cost....... $1,764,009 $1,422,066 $34,795 The Portfolios shares held Class B............................................. 172,219 141,592 3,521
----------- 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 NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015 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)*** -------- --------------- ---------- ----------- ALL ASSET AGGRESSIVE-ALT 25................ 0.02% B $ 11.58 6 ALL ASSET GROWTH-ALT 20.................... 0.02% B $ 11.27 7 ALL ASSET MODERATE GROWTH-ALT 15........... 0.02% B $ 10.97 1 AXA AGGRESSIVE ALLOCATION.................. 0.02% B $ 11.91 216 AXA CONSERVATIVE ALLOCATION................ 0.02% B $ 12.12 105 AXA CONSERVATIVE-PLUS ALLOCATION........... 0.02% B $ 12.22 88 AXA GLOBAL EQUITY MANAGED VOLATILITY....... 0.00% B $510.99 -- AXA GLOBAL EQUITY MANAGED VOLATILITY....... 0.02% B $ 14.36 105 AXA INTERNATIONAL CORE MANAGED VOLATILITY.. 0.00% B $140.77 -- AXA INTERNATIONAL CORE MANAGED VOLATILITY.. 0.02% B $ 12.65 146 AXA INTERNATIONAL VALUE MANAGED VOLATILITY. 0.00% B $155.32 -- AXA LARGE CAP GROWTH MANAGED VOLATILITY.... 0.00% B $243.24 -- AXA LARGE CAP GROWTH MANAGED VOLATILITY.... 0.02% B $ 10.14 325 AXA LARGE CAP VALUE MANAGED VOLATILITY..... 0.00% A $185.40 4 AXA LARGE CAP VALUE MANAGED VOLATILITY..... 0.02% B $ 17.21 472 AXA MID CAP VALUE MANAGED VOLATILITY....... 0.00% B $296.77 -- AXA MID CAP VALUE MANAGED VOLATILITY....... 0.02% B $ 23.39 324 AXA MODERATE ALLOCATION.................... 0.02% B $ 11.98 1,583 AXA MODERATE-PLUS ALLOCATION............... 0.02% B $ 12.04 129 AXA/AB SMALL CAP GROWTH.................... 0.05% A $357.31 1 AXA/AB SMALL CAP GROWTH.................... 0.02% B $ 13.94 27 CHARTER/SM/ MULTI-SECTOR BOND.............. 0.05% A $223.13 -- CHARTER/SM/ MULTI-SECTOR BOND.............. 0.02% B $ 10.07 92 CHARTER/SM/ SMALL CAP VALUE................ 0.00% B $252.31 -- EQ/BLACKROCK BASIC VALUE EQUITY............ 0.00% B $332.63 -- EQ/BOSTON ADVISORS EQUITY INCOME........... 0.02% B $ 14.04 24 EQ/CALVERT SOCIALLY RESPONSIBLE............ 0.00% B $159.88 -- EQ/CALVERT SOCIALLY RESPONSIBLE............ 0.02% B $ 13.46 168 EQ/CAPITAL GUARDIAN RESEARCH............... 0.00% B $241.50 -- EQ/CAPITAL GUARDIAN RESEARCH............... 0.02% B $ 29.72 240 EQ/EQUITY 500 INDEX........................ 0.05% A $611.49 2 EQ/EQUITY 500 INDEX........................ 0.02% B $ 15.21 1,470 EQ/GAMCO MERGERS AND ACQUISITIONS.......... 0.02% B $ 11.73 11 EQ/GAMCO SMALL COMPANY VALUE............... 0.02% B $ 23.29 120 EQ/INTERMEDIATE GOVERNMENT BOND............ 0.05% A $229.02 -- EQ/INTERMEDIATE GOVERNMENT BOND............ 0.02% B $ 12.28 320
----------- The accompanying notes are an integral part of these financial statements. FSA-42 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED) DECEMBER 31, 2015
UNITS CONTRACT OUTSTANDING CHARGES* SHARE CLASS** UNIT VALUE (000'S)*** -------- --------------- ---------- ----------- EQ/INTERNATIONAL EQUITY INDEX.... 0.02% A $ 19.55 485 EQ/INTERNATIONAL EQUITY INDEX.... 0.05% A $173.74 2 EQ/JPMORGAN VALUE OPPORTUNITIES.. 0.00% B $234.67 1 EQ/LARGE CAP GROWTH INDEX........ 0.00% B $155.74 -- EQ/LARGE CAP GROWTH INDEX........ 0.02% B $ 15.15 34 EQ/MFS INTERNATIONAL GROWTH...... 0.02% B $ 11.25 34 EQ/MID CAP INDEX................. 0.00% B $211.01 -- EQ/MID CAP INDEX................. 0.02% B $ 14.40 39 EQ/MONEY MARKET.................. 0.05% A $174.88 -- EQ/MONEY MARKET.................. 0.02% B $ 9.99 1,383 EQ/MORGAN STANLEY MID CAP GROWTH. 0.02% B $ 13.16 10 EQ/PIMCO ULTRA SHORT BOND........ 0.02% B $ 11.77 177 EQ/QUALITY BOND PLUS............. 0.05% A $247.26 -- EQ/SMALL COMPANY INDEX........... 0.02% B $ 23.87 184 EQ/T. ROWE PRICE GROWTH STOCK.... 0.00% B $ 18.56 -- EQ/T. ROWE PRICE GROWTH STOCK.... 0.02% B $ 16.11 26 EQ/WELLS FARGO OMEGA GROWTH...... 0.00% B $210.69 1 EQ/WELLS FARGO OMEGA GROWTH...... 0.02% B $ 14.39 15 MULTIMANAGER CORE BOND........... 0.02% B $ 10.16 160 MULTIMANAGER TECHNOLOGY.......... 0.00% B $269.46 -- MULTIMANAGER TECHNOLOGY.......... 0.02% B $ 25.55 179 TARGET 2015 ALLOCATION........... 0.02% B $ 11.54 179 TARGET 2025 ALLOCATION........... 0.02% B $ 11.82 218 TARGET 2035 ALLOCATION........... 0.02% B $ 11.95 138 TARGET 2045 ALLOCATION........... 0.02% B $ 11.87 112 TARGET 2055 ALLOCATION........... 0.02% B $ 9.22 4
----------- The accompanying notes are an integral part of these financial statements. * Contract charges reflect the annual program expense, 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-43 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2015
ALL ASSET ALL ASSET ALL ASSET GROWTH- MODERATE GROWTH- AGGRESSIVE-ALT 25* ALT 20* ALT 15* ------------------ ----------------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 577 $ 629 $ 63 Expenses: Asset-based charges and direct operating expenses.................. 8 24 -- ------- ------- ----- NET INVESTMENT INCOME (LOSS).......................................... 569 605 63 ------- ------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 230 (2,592) 11 Net realized gain (loss) distribution from the Portfolios.......... 708 2,621 70 ------- ------- ----- Net realized gain (loss) on investments............................. 938 29 81 ------- ------- ----- Net change in unrealized appreciation (depreciation) of investments. (3,209) (4,310) (428) ------- ------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (2,271) (4,281) (347) ------- ------- ----- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(1,702) $(3,676) $(284) ======= ======= =====
AXA AGGRESSIVE AXA CONSERVATIVE AXA CONSERVATIVE- ALLOCATION* ALLOCATION* PLUS ALLOCATION* -------------- ---------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 25,339 $ 10,554 $ 9,181 Expenses: Asset-based charges and direct operating expenses.................. 603 320 243 --------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 24,736 10,234 8,938 --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 29,789 (3,286) 1,735 Net realized gain (loss) distribution from the Portfolios.......... 158,974 23,727 37,567 --------- -------- -------- Net realized gain (loss) on investments............................. 188,763 20,441 39,302 --------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (252,841) (35,207) (57,421) --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (64,078) (14,766) (18,119) --------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (39,342) $ (4,532) $ (9,181) ========= ======== ========
----------- 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 NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
AXA GLOBAL EQUITY AXA INTERNATIONAL AXA INTERNATIONAL MANAGED CORE MANAGED VALUE MANAGED VOLATILITY* VOLATILITY* VOLATILITY* ----------------- ----------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 15,283 $ 1,189 $ 54 Expenses: Asset-based charges and direct operating expenses.................. 391 494 -- --------- --------- ------- NET INVESTMENT INCOME (LOSS).......................................... 14,892 695 54 --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 88,799 23,376 426 Net realized gain (loss) distribution from the Portfolios.......... -- -- -- --------- --------- ------- Net realized gain (loss) on investments............................. 88,799 23,376 426 --------- --------- ------- Net change in unrealized appreciation (depreciation) of investments. (129,412) (105,206) (2,105) --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (40,613) (81,830) (1,679) --------- --------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (25,721) $ (81,135) $(1,625) ========= ========= =======
AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP CORE MANAGED GROWTH MANAGED VALUE MANAGED VOLATILITY* VOLATILITY* VOLATILITY* ------------- -------------- ------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ -- $ 9,788 $ 150,502 Expenses: Asset-based charges and direct operating expenses.................. -- 838 2,053 -------- --------- ----------- NET INVESTMENT INCOME (LOSS).......................................... -- 8,950 148,449 -------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 32,112 439,407 623,462 Net realized gain (loss) distribution from the Portfolios.......... -- 149,374 -- -------- --------- ----------- Net realized gain (loss) on investments............................. 32,112 588,781 623,462 -------- --------- ----------- Net change in unrealized appreciation (depreciation) of investments. (30,624) (447,410) (1,154,100) -------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 1,488 141,371 (530,638) -------- --------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 1,488 $ 150,321 $ (382,189) ======== ========= ===========
----------- 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 NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
AXA MID CAP VALUE MANAGED AXA MODERATE AXA MODERATE- VOLATILITY* ALLOCATION* PLUS ALLOCATION* ----------------- ------------ ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 63,253 $ 161,412 $ 14,373 Expenses: Asset-based charges and direct operating expenses.................. 1,986 4,487 329 --------- ----------- --------- NET INVESTMENT INCOME (LOSS).......................................... 61,267 156,925 14,044 --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 411,919 178,363 7,025 Net realized gain (loss) distribution from the Portfolios.......... -- 693,865 68,880 --------- ----------- --------- Net realized gain (loss) on investments............................. 411,919 872,228 75,905 --------- ----------- --------- Net change in unrealized appreciation (depreciation) of investments. (747,242) (1,196,178) (112,842) --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (335,323) (323,950) (36,937) --------- ----------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(274,056) $ (167,025) $ (22,893) ========= =========== =========
AXA/AB SMALL CHARTER/SM/ MULTI- CHARTER/SM/ SMALL CAP GROWTH* SECTOR BOND* CAP VALUE* ------------ ---------------- --------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 277 $ 14,798 $ 350 Expenses: Asset-based charges and direct operating expenses.................. 223 198 -- -------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 54 14,600 350 -------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 7,638 (5,202) 18,978 Net realized gain (loss) distribution from the Portfolios.......... 66,006 -- -- -------- -------- -------- Net realized gain (loss) on investments............................. 73,644 (5,202) 18,978 -------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (88,857) (16,249) (28,140) -------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (15,213) (21,451) (9,162) -------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(15,159) $ (6,851) $ (8,812) ======== ======== ========
----------- 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-46 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/BLACKROCK EQ/BOSTON EQ/CALVERT EQ/CAPITAL BASIC VALUE ADVISORS EQUITY SOCIALLY GUARDIAN EQUITY* INCOME* RESPONSIBLE* RESEARCH* ------------ --------------- ------------ ---------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 1,086 $ 5,380 $ 23,760 $ 43,510 Expenses: Asset-based charges and direct operating expenses.................. -- 72 563 1,782 -------- -------- --------- --------- NET INVESTMENT INCOME (LOSS).......................................... 1,086 5,308 23,197 41,728 -------- -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 5,024 (13,640) 316,318 559,201 Net realized gain (loss) distribution from the Portfolios.......... -- 28,867 245,584 -- -------- -------- --------- --------- Net realized gain (loss) on investments............................. 5,024 15,227 561,902 559,201 -------- -------- --------- --------- Net change in unrealized appreciation (depreciation) of investments. (10,722) (24,471) (571,837) (433,987) -------- -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (5,698) (9,244) (9,935) 125,214 -------- -------- --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (4,612) $ (3,936) $ 13,262 $ 166,942 ======== ======== ========= =========
EQ/EQUITY 500 EQ/GAMCO MERGERS INDEX* AND ACQUISITIONS* ------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 384,047 $ -- Expenses: Asset-based charges and direct operating expenses.................. 6,113 29 ----------- ------- NET INVESTMENT INCOME (LOSS).......................................... 377,934 (29) ----------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 1,816,257 (16) Net realized gain (loss) distribution from the Portfolios.......... 428,857 5,903 ----------- ------- Net realized gain (loss) on investments............................. 2,245,114 5,887 ----------- ------- Net change in unrealized appreciation (depreciation) of investments. (2,436,673) (2,689) ----------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (191,559) 3,198 ----------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 186,375 $ 3,169 =========== =======
----------- 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-47 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/GAMCO SMALL EQ/INTERMEDIATE EQ/INTERNATIONAL COMPANY VALUE* GOVERNMENT BOND* EQUITY INDEX* -------------- ---------------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 15,397 $ 23,957 $ 249,089 Expenses: Asset-based charges and direct operating expenses.................. 673 904 2,654 --------- -------- --------- NET INVESTMENT INCOME (LOSS).......................................... 14,724 23,053 246,435 --------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 141,034 16,165 (438,828) Net realized gain (loss) distribution from the Portfolios.......... 148,606 4,470 -- --------- -------- --------- Net realized gain (loss) on investments............................. 289,640 20,635 (438,828) --------- -------- --------- Net change in unrealized appreciation (depreciation) of investments. (470,211) (30,649) 6,747 --------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (180,571) (10,014) (432,081) --------- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(165,847) $ 13,039 $(185,646) ========= ======== =========
EQ/MFS EQ/JPMORGAN VALUE EQ/LARGE CAP INTERNATIONAL OPPORTUNITIES* GROWTH INDEX* GROWTH* ----------------- ------------- ------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 1,076 $ 5,009 $ 2,412 Expenses: Asset-based charges and direct operating expenses.................. -- 100 103 ------- -------- ------- NET INVESTMENT INCOME (LOSS).......................................... 1,076 4,909 2,309 ------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 875 (3,069) (4,936) Net realized gain (loss) distribution from the Portfolios.......... -- 50,318 5,640 ------- -------- ------- Net realized gain (loss) on investments............................. 875 47,249 704 ------- -------- ------- Net change in unrealized appreciation (depreciation) of investments. (2,816) (40,710) (81) ------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (1,941) 6,539 623 ------- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (865) $ 11,448 $ 2,932 ======= ======== =======
----------- 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-48 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/MID CAP EQ/MONEY EQ/MORGAN STANLEY EQ/PIMCO ULTRA INDEX* MARKET* MID CAP GROWTH* SHORT BOND* ---------- -------- ----------------- -------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 5,862 $ -- $ -- $ 10,039 Expenses: Asset-based charges and direct operating expenses.................. 118 3,383 34 507 -------- ------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 5,744 (3,383) (34) 9,532 -------- ------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 16,504 (30) (14,107) (10,336) Net realized gain (loss) distribution from the Portfolios.......... -- 75 3,257 -- -------- ------- -------- -------- Net realized gain (loss) on investments............................. 16,504 45 (10,850) (10,336) -------- ------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (38,272) (230) 603 (5,432) -------- ------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (21,768) (185) (10,247) (15,768) -------- ------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(16,024) $(3,568) $(10,281) $ (6,236) ======== ======= ======== ========
EQ/QUALITY EQ/SMALL COMPANY BOND PLUS* INDEX* ---------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 78 $ 42,367 Expenses: Asset-based charges and direct operating expenses.................. 4 1,172 ---- --------- NET INVESTMENT INCOME (LOSS).......................................... 74 41,195 ---- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 12 237,733 Net realized gain (loss) distribution from the Portfolios.......... -- 369,294 ---- --------- Net realized gain (loss) on investments............................. 12 607,027 ---- --------- Net change in unrealized appreciation (depreciation) of investments. (67) (842,157) ---- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (55) (235,130) ---- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 19 $(193,935) ==== =========
----------- 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-49 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER GROWTH STOCK* OMEGA GROWTH* CORE BOND* TECHNOLOGY* ---------------- -------------- ------------ ------------ INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ -- $ -- $ 26,678 $ -- Expenses: Asset-based charges and direct operating expenses.................. 97 59 302 1,081 -------- -------- -------- --------- NET INVESTMENT INCOME (LOSS).......................................... (97) (59) 26,376 (1,081) -------- -------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 45,742 (6,596) (13,766) 362,010 Net realized gain (loss) distribution from the Portfolios.......... 16,778 33,792 -- 329,572 -------- -------- -------- --------- Net realized gain (loss) on investments............................. 62,520 27,196 (13,766) 691,582 -------- -------- -------- --------- Net change in unrealized appreciation (depreciation) of investments. (26,733) (21,311) (14,469) (396,663) -------- -------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 35,787 5,885 (28,235) 294,919 -------- -------- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 35,690 $ 5,826 $ (1,859) $ 293,838 ======== ======== ======== =========
TARGET 2015 TARGET 2025 ALLOCATION* ALLOCATION* ----------- ----------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 25,158 $ 33,040 Expenses: Asset-based charges and direct operating expenses.................. 573 603 --------- --------- NET INVESTMENT INCOME (LOSS).......................................... 24,585 32,437 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 2,321 42,661 Net realized gain (loss) distribution from the Portfolios.......... 32,040 34,245 --------- --------- Net realized gain (loss) on investments............................. 34,361 76,906 --------- --------- Net change in unrealized appreciation (depreciation) of investments. (101,199) (163,640) --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (66,838) (86,734) --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (42,253) $ (54,297) ========= =========
----------- 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-50 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2015
TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION* ALLOCATION* ALLOCATION*(A) ----------- ----------- -------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 21,230 $ 17,938 $ 460 Expenses: Asset-based charges and direct operating expenses.................. 386 307 3 --------- --------- ------- NET INVESTMENT INCOME (LOSS).......................................... 20,844 17,631 457 --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 65,255 44,187 (8) Net realized gain (loss) distribution from the Portfolios.......... 24,937 21,887 33 --------- --------- ------- Net realized gain (loss) on investments............................. 90,192 66,074 25 --------- --------- ------- Net change in unrealized appreciation (depreciation) of investments. (140,669) (111,882) (2,265) --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (50,477) (45,808) (2,240) --------- --------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (29,633) $ (28,177) $(1,783) ========= ========= =======
----------- 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. (a)Units were made available on May 26, 2015. FSA-51 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
ALL ASSET ALL ASSET AGGRESSIVE-ALT 25* GROWTH-ALT 20* ---------------- ----------------- 2015 2014 2015 2014 ------- ------- -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 569 $ 280 $ 605 $ 1,385 Net realized gain (loss) on investments.................................................. 938 556 29 665 Net change in unrealized appreciation (depreciation) of investments...................... (3,209) (566) (4,310) (2,271) ------- ------- -------- ------- Net increase (decrease) in net assets resulting from operations.......................... (1,702) 270 (3,676) (221) ------- ------- -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 27,566 12,595 21,783 23,598 Transfers between Variable Investment Options including guaranteed interest account, net. 28,249 3,356 1,381 73,275 Redemptions for contract benefits and terminations....................................... (893) (2,609) (38,178) (3,385) Contract maintenance charges............................................................. (314) (211) (772) (320) ------- ------- -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 54,608 13,131 (15,786) 93,168 ------- ------- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 52,906 13,401 (19,462) 92,947 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 22,319 8,918 94,171 1,224 ------- ------- -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $75,225 $22,319 $ 74,709 $94,171 ======= ======= ======== =======
ALL ASSET MODERATE GROWTH-ALT 15* ----------------- 2015 2014 ------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 63 $ 71 Net realized gain (loss) on investments.................................................. 81 467 Net change in unrealized appreciation (depreciation) of investments...................... (428) (66) ------- -------- Net increase (decrease) in net assets resulting from operations.......................... (284) 472 ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 4,325 3,262 Transfers between Variable Investment Options including guaranteed interest account, net. -- 25,632 Redemptions for contract benefits and terminations....................................... (1,092) (26,416) Contract maintenance charges............................................................. (62) (131) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 3,171 2,347 ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 2,887 2,819 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 4,441 1,622 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,328 $ 4,441 ======= ========
----------- 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-52 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA AGGRESSIVE ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 24,736 $ 39,076 Net realized gain (loss) on investments.................................................. 188,763 280,545 Net change in unrealized appreciation (depreciation) of investments...................... (252,841) (204,203) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (39,342) 115,418 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 345,553 368,513 Transfers between Variable Investment Options including guaranteed interest account, net. (138,794) 542 Redemptions for contract benefits and terminations....................................... (112,064) (283,457) Contract maintenance charges............................................................. (20,723) (21,630) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 73,972 63,968 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 34,630 179,386 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,534,809 2,355,423 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,569,439 $2,534,809 ========== ==========
AXA CONSERVATIVE ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 10,234 $ 10,902 Net realized gain (loss) on investments.................................................. 20,441 55,372 Net change in unrealized appreciation (depreciation) of investments...................... (35,207) (28,387) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (4,532) 37,887 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 175,891 203,614 Transfers between Variable Investment Options including guaranteed interest account, net. (123,758) (20,101) Redemptions for contract benefits and terminations....................................... (67,950) (446,274) Contract maintenance charges............................................................. (13,259) (14,860) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (29,076) (277,621) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (33,608) (239,734) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,306,736 1,546,470 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,273,128 $1,306,736 ========== ==========
AXA CONSERVATIVE-PLUS ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 8,938 $ 9,756 Net realized gain (loss) on investments.................................................. 39,302 74,613 Net change in unrealized appreciation (depreciation) of investments...................... (57,421) (55,412) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (9,181) 28,957 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 155,838 348,998 Transfers between Variable Investment Options including guaranteed interest account, net. 13,131 (258,921) Redemptions for contract benefits and terminations....................................... (70,271) (347,235) Contract maintenance charges............................................................. (10,907) (12,113) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 87,791 (269,271) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 78,610 (240,314) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 998,100 1,238,414 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,076,710 $ 998,100 ========== ==========
----------- 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-53 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA GLOBAL EQUITY MANAGED VOLATILITY* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,892 $ 18,611 Net realized gain (loss) on investments.................................................. 88,799 138,800 Net change in unrealized appreciation (depreciation) of investments...................... (129,412) (118,223) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (25,721) 39,188 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 170,698 218,865 Transfers between Variable Investment Options including guaranteed interest account, net. (129,733) (86,882) Redemptions for contract benefits and terminations....................................... (237,741) (434,573) Contract maintenance charges............................................................. (15,211) (18,622) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (211,987) (321,212) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (237,708) (282,024) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,844,275 2,126,299 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,606,567 $1,844,275 ========== ==========
AXA INTERNATIONAL CORE MANAGED VOLATILITY* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 695 $ 33,560 Net realized gain (loss) on investments.................................................. 23,376 79,394 Net change in unrealized appreciation (depreciation) of investments...................... (105,206) (273,537) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (81,135) (160,583) ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 174,039 256,735 Transfers between Variable Investment Options including guaranteed interest account, net. (219,840) (226,664) Redemptions for contract benefits and terminations....................................... (399,041) (485,947) Contract maintenance charges............................................................. (16,800) (24,023) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (461,642) (479,899) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (542,777) (640,482) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,398,423 3,038,905 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,855,646 $2,398,423 ========== ==========
AXA INTERNATIONAL VALUE MANAGED VOLATILITY* ----------------- 2015 2014 ------- -------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 54 $ 919 Net realized gain (loss) on investments.................................................. 426 19,670 Net change in unrealized appreciation (depreciation) of investments...................... (2,105) (22,736) ------- -------- Net increase (decrease) in net assets resulting from operations.......................... (1,625) (2,147) ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 2,399 2,492 Transfers between Variable Investment Options including guaranteed interest account, net. (673) -- Redemptions for contract benefits and terminations....................................... (1,149) (87,082) Contract maintenance charges............................................................. (523) (765) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 54 (85,355) ------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (23) 21 ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,594) (87,481) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 52,259 139,740 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $50,665 $ 52,259 ======= ========
----------- 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-54 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA LARGE CAP CORE MANAGED VOLATILITY*(C) ----------------- 2015 2014 -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ -- $ 803 Net realized gain (loss) on investments.................................................. 32,112 3,955 Net change in unrealized appreciation (depreciation) of investments...................... (30,624) 4,567 -------- ------- Net increase (decrease) in net assets resulting from operations.......................... 1,488 9,325 -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,919 -- Transfers between Variable Investment Options including guaranteed interest account, net. (92,053) -- Redemptions for contract benefits and terminations....................................... -- -- Contract maintenance charges............................................................. (507) (939) -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (90,641) (939) -------- ------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (1) -- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (89,154) 8,386 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 89,154 80,768 -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ -- $89,154 ======== =======
AXA LARGE CAP GROWTH MANAGED VOLATILITY*(A) ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 8,950 $ 6,345 Net realized gain (loss) on investments.................................................. 588,781 498,563 Net change in unrealized appreciation (depreciation) of investments...................... (447,410) (104,554) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 150,321 400,354 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 231,156 376,432 Transfers between Variable Investment Options including guaranteed interest account, net. (266,671) (117,013) Redemptions for contract benefits and terminations....................................... (621,153) (800,384) Contract maintenance charges............................................................. (27,950) (32,395) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (684,618) (573,360) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (143) -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (534,440) (173,006) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,863,720 4,036,726 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $3,329,280 $3,863,720 ========== ==========
AXA LARGE CAP VALUE MANAGED VOLATILITY* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 148,449 $ 132,467 Net realized gain (loss) on investments.................................................. 623,462 362,737 Net change in unrealized appreciation (depreciation) of investments...................... (1,154,100) 671,363 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (382,189) 1,166,567 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 576,243 730,601 Transfers between Variable Investment Options including guaranteed interest account, net. (526,514) (136,113) Redemptions for contract benefits and terminations....................................... (972,935) (1,708,891) Contract maintenance charges............................................................. (72,369) (84,858) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (995,575) (1,199,261) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,377,764) (32,694) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 10,215,613 10,248,307 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 8,837,849 $10,215,613 =========== ===========
----------- 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)AXA Large Cap Growth Managed Volatility replaced EQ/Equity Growth PLUS due to a fund merger on June 20, 2014. (c)AXA Large Cap Core Managed Volatility had no units at December 31, 2015, thus is not included in the Statement of Assets and Liabilities. FSA-55 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA MID CAP VALUE MANAGED VOLATILITY* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 61,267 $ 50,532 Net realized gain (loss) on investments.................................................. 411,919 307,578 Net change in unrealized appreciation (depreciation) of investments...................... (747,242) 580,746 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (274,056) 938,856 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 443,981 620,004 Transfers between Variable Investment Options including guaranteed interest account, net. (265,300) (140,330) Redemptions for contract benefits and terminations....................................... (1,295,296) (1,052,417) Contract maintenance charges............................................................. (67,440) (79,343) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (1,184,055) (652,086) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,458,111) 286,770 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 9,159,106 8,872,336 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,700,995 $ 9,159,106 =========== ===========
AXA MODERATE ALLOCATION* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 156,925 $ 199,609 Net realized gain (loss) on investments.................................................. 872,228 1,115,416 Net change in unrealized appreciation (depreciation) of investments...................... (1,196,178) (764,280) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (167,025) 550,745 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 4,473,215 4,045,268 Transfers between Variable Investment Options including guaranteed interest account, net. (737,608) (413,412) Redemptions for contract benefits and terminations....................................... (2,926,052) (2,887,845) Contract maintenance charges............................................................. (196,864) (217,500) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 612,691 526,511 ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 445,666 1,077,256 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 18,516,711 17,439,455 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $18,962,377 $18,516,711 =========== ===========
AXA MODERATE-PLUS ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,044 $ 16,205 Net realized gain (loss) on investments.................................................. 75,905 97,328 Net change in unrealized appreciation (depreciation) of investments...................... (112,842) (71,978) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (22,893) 41,555 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 354,437 306,057 Transfers between Variable Investment Options including guaranteed interest account, net. 49,640 28,696 Redemptions for contract benefits and terminations....................................... (70,885) (139,588) Contract maintenance charges............................................................. (12,374) (11,052) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 320,818 184,113 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- (3) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 297,925 225,665 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,255,591 1,029,926 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,553,516 $1,255,591 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA/AB SMALL CAP GROWTH* -------------------- 2015 2014 --------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 54 $ 154 Net realized gain (loss) on investments.................................................. 73,644 149,614 Net change in unrealized appreciation (depreciation) of investments...................... (88,857) (128,566) --------- --------- Net increase (decrease) in net assets resulting from operations.......................... (15,159) 21,202 --------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 117,950 87,099 Transfers between Variable Investment Options including guaranteed interest account, net. (5,020) 142,374 Redemptions for contract benefits and terminations....................................... (189,664) (174,302) Contract maintenance charges............................................................. (6,025) (6,595) --------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (82,759) 48,576 --------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 6 --------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (97,918) 69,784 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 654,706 584,922 --------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 556,788 $ 654,706 ========= =========
CHARTER/SM/ MULTI-SECTOR BOND* ------------------- 2015 2014 -------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,600 $ 20,815 Net realized gain (loss) on investments.................................................. (5,202) (8,116) Net change in unrealized appreciation (depreciation) of investments...................... (16,249) 7,517 -------- --------- Net increase (decrease) in net assets resulting from operations.......................... (6,851) 20,216 -------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 143,832 138,755 Transfers between Variable Investment Options including guaranteed interest account, net. 76,316 4,355 Redemptions for contract benefits and terminations....................................... (93,231) (170,729) Contract maintenance charges............................................................. (7,094) (7,812) -------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 119,823 (35,431) -------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 112,972 (15,215) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 815,999 831,214 -------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $928,971 $ 815,999 ======== =========
CHARTER/SM/ SMALL CAP VALUE* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 350 $ 207 Net realized gain (loss) on investments.................................................. 18,978 29,809 Net change in unrealized appreciation (depreciation) of investments...................... (28,140) (37,054) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (8,812) (7,038) -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,610 1,178 Transfers between Variable Investment Options including guaranteed interest account, net. (46,902) -- Redemptions for contract benefits and terminations....................................... (1,230) (86,336) Contract maintenance charges............................................................. (929) (1,466) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (47,451) (86,624) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (22) 18 -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (56,285) (93,644) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 115,693 209,337 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 59,408 $115,693 ======== ========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/BLACKROCK BASIC VALUE EQUITY* ----------------- 2015 2014 -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 1,086 $ 949 Net realized gain (loss) on investments.................................................. 5,024 2,717 Net change in unrealized appreciation (depreciation) of investments...................... (10,722) 4,417 -------- ------- Net increase (decrease) in net assets resulting from operations.......................... (4,612) 8,083 -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 3,206 3,646 Transfers between Variable Investment Options including guaranteed interest account, net. (11,064) -- Redemptions for contract benefits and terminations....................................... -- (6,444) Contract maintenance charges............................................................. (971) (1,025) -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (8,829) (3,823) -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (13,441) 4,260 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 91,081 86,821 -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 77,640 $91,081 ======== =======
EQ/BOSTON ADVISORS EQUITY INCOME* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 5,308 $ 4,366 Net realized gain (loss) on investments.................................................. 15,227 35,787 Net change in unrealized appreciation (depreciation) of investments...................... (24,471) (19,370) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (3,936) 20,783 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 46,005 38,060 Transfers between Variable Investment Options including guaranteed interest account, net. 16,294 30,221 Redemptions for contract benefits and terminations....................................... (13,990) (32,390) Contract maintenance charges............................................................. (2,586) (2,308) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 45,723 33,583 -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 41,787 54,366 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 291,580 237,214 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $333,367 $291,580 ======== ========
EQ/CALVERT SOCIALLY RESPONSIBLE* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 23,197 $ 20,346 Net realized gain (loss) on investments.................................................. 561,902 425,331 Net change in unrealized appreciation (depreciation) of investments...................... (571,837) (100,554) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 13,262 345,123 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 185,722 254,552 Transfers between Variable Investment Options including guaranteed interest account, net. (109,030) (244,959) Redemptions for contract benefits and terminations....................................... (548,186) (457,084) Contract maintenance charges............................................................. (18,634) (22,575) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (490,128) (470,066) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (476,866) (124,943) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,734,351 2,859,294 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,257,485 $2,734,351 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/CAPITAL GUARDIAN RESEARCH* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 41,728 $ 50,410 Net realized gain (loss) on investments.................................................. 559,201 294,608 Net change in unrealized appreciation (depreciation) of investments...................... (433,987) 379,857 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 166,942 724,875 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 511,376 466,349 Transfers between Variable Investment Options including guaranteed interest account, net. (217,874) (253,972) Redemptions for contract benefits and terminations....................................... (849,190) (663,856) Contract maintenance charges............................................................. (62,256) (65,431) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (617,944) (516,910) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. 201 (201) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (450,801) 207,764 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 7,633,412 7,425,648 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $7,182,611 $7,633,412 ========== ==========
EQ/EQUITY 500 INDEX* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 377,934 $ 332,495 Net realized gain (loss) on investments.................................................. 2,245,114 1,212,435 Net change in unrealized appreciation (depreciation) of investments...................... (2,436,673) 1,458,599 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... 186,375 3,003,529 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,740,670 2,539,620 Transfers between Variable Investment Options including guaranteed interest account, net. (127,199) (73,515) Redemptions for contract benefits and terminations....................................... (3,902,564) (3,144,599) Contract maintenance charges............................................................. (192,676) (211,856) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (2,481,769) (890,350) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 15 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (2,295,394) 2,113,194 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 25,587,459 23,474,265 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $23,292,065 $25,587,459 =========== ===========
EQ/GAMCO MERGERS AND ACQUISITIONS* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (29) $ (28) Net realized gain (loss) on investments.................................................. 5,887 3,163 Net change in unrealized appreciation (depreciation) of investments...................... (2,689) (2,303) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... 3,169 832 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 15,743 10,837 Transfers between Variable Investment Options including guaranteed interest account, net. (2,068) (73,560) Redemptions for contract benefits and terminations....................................... (2,329) (498) Contract maintenance charges............................................................. (960) (1,010) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 10,386 (64,231) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 13,555 (63,399) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 115,447 178,846 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $129,002 $115,447 ======== ========
----------- 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-59 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/GAMCO SMALL COMPANY VALUE* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,724 $ 7,624 Net realized gain (loss) on investments.................................................. 289,640 454,155 Net change in unrealized appreciation (depreciation) of investments...................... (470,211) (363,990) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (165,847) 97,789 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 364,615 444,005 Transfers between Variable Investment Options including guaranteed interest account, net. (145,691) (635,859) Redemptions for contract benefits and terminations....................................... (306,679) (356,069) Contract maintenance charges............................................................. (23,312) (29,634) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (111,067) (577,557) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (2,400) -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (279,314) (479,768) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,064,558 3,544,326 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,785,244 $3,064,558 ========== ==========
EQ/INTERMEDIATE GOVERNMENT BOND* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 23,053 $ 15,300 Net realized gain (loss) on investments.................................................. 20,635 25,269 Net change in unrealized appreciation (depreciation) of investments...................... (30,649) 17,820 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 13,039 58,389 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 593,856 459,408 Transfers between Variable Investment Options including guaranteed interest account, net. 25,398 212,482 Redemptions for contract benefits and terminations....................................... (620,515) (606,207) Contract maintenance charges............................................................. (34,227) (37,974) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (35,488) 27,709 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (8) 79 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (22,457) 86,177 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,957,727 3,871,550 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $3,935,270 $3,957,727 ========== ==========
EQ/INTERNATIONAL EQUITY INDEX* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 246,435 $ 349,049 Net realized gain (loss) on investments.................................................. (438,828) (1,018,986) Net change in unrealized appreciation (depreciation) of investments...................... 6,747 (138,525) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (185,646) (808,462) ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 946,190 908,165 Transfers between Variable Investment Options including guaranteed interest account, net. (366,044) (181,894) Redemptions for contract benefits and terminations....................................... (1,162,966) (1,846,779) Contract maintenance charges............................................................. (86,387) (104,467) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (669,207) (1,224,975) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 18 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (854,853) (2,033,419) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 10,754,170 12,787,589 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 9,899,317 $10,754,170 =========== ===========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/JPMORGAN VALUE OPPORTUNITIES* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 1,076 $ 1,090 Net realized gain (loss) on investments.................................................. 875 702 Net change in unrealized appreciation (depreciation) of investments...................... (2,816) 12,154 -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (865) 13,946 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 2 -- Transfers between Variable Investment Options including guaranteed interest account, net. 44,493 -- Redemptions for contract benefits and terminations....................................... -- -- Contract maintenance charges............................................................. (1,433) (1,096) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 43,062 (1,096) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 42,197 12,850 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 110,445 97,595 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $152,642 $110,445 ======== ========
EQ/LARGE CAP GROWTH INDEX* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 4,909 $ 2,038 Net realized gain (loss) on investments.................................................. 47,249 27,824 Net change in unrealized appreciation (depreciation) of investments...................... (40,710) (10,347) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... 11,448 19,515 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 110,482 123,370 Transfers between Variable Investment Options including guaranteed interest account, net. 197,001 111,864 Redemptions for contract benefits and terminations....................................... (74,737) (93,175) Contract maintenance charges............................................................. (3,428) (1,673) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 229,318 140,386 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 240,766 159,901 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 282,211 122,310 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $522,977 $282,211 ======== ========
EQ/MFS INTERNATIONAL GROWTH* ------------------- 2015 2014 --------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 2,309 $ 4,278 Net realized gain (loss) on investments.................................................. 704 21,769 Net change in unrealized appreciation (depreciation) of investments...................... (81) (48,462) --------- -------- Net increase (decrease) in net assets resulting from operations.......................... 2,932 (22,415) --------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 75,297 52,736 Transfers between Variable Investment Options including guaranteed interest account, net. 34,696 79,269 Redemptions for contract benefits and terminations....................................... (182,040) (31,874) Contract maintenance charges............................................................. (3,060) (3,314) --------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (75,107) 96,817 --------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (24) 25 --------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (72,199) 74,427 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 449,868 375,441 --------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 377,669 $449,868 ========= ========
----------- 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-61 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/MID CAP INDEX* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 5,744 $ 3,303 Net realized gain (loss) on investments.................................................. 16,504 26,688 Net change in unrealized appreciation (depreciation) of investments...................... (38,272) 3,514 -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (16,024) 33,505 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 94,644 142,182 Transfers between Variable Investment Options including guaranteed interest account, net. 165,512 165,647 Redemptions for contract benefits and terminations....................................... (80,559) (63,967) Contract maintenance charges............................................................. (4,376) (3,073) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 175,221 240,789 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 159,197 274,294 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 489,887 215,593 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $649,084 $489,887 ======== ========
EQ/MONEY MARKET* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (3,383) $ (3,068) Net realized gain (loss) on investments.................................................. 45 88 Net change in unrealized appreciation (depreciation) of investments...................... (230) (12) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (3,568) (2,992) ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 6,229,062 5,949,155 Transfers between Variable Investment Options including guaranteed interest account, net. 924,003 (955,761) Redemptions for contract benefits and terminations....................................... (7,134,770) (5,052,241) Contract maintenance charges............................................................. (146,400) (168,128) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (128,105) (226,975) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. 37 -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (131,636) (229,967) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 13,950,208 14,180,175 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $13,818,572 $13,950,208 =========== ===========
EQ/MORGAN STANLEY MID CAP GROWTH* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (34) $ (20) Net realized gain (loss) on investments.................................................. (10,850) 18,460 Net change in unrealized appreciation (depreciation) of investments...................... 603 (15,027) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (10,281) 3,413 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 32,408 27,622 Transfers between Variable Investment Options including guaranteed interest account, net. 17,648 93,465 Redemptions for contract benefits and terminations....................................... (55,657) (6,262) Contract maintenance charges............................................................. (1,063) (867) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (6,664) 113,958 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (16,945) 117,371 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 150,016 32,645 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $133,071 $150,016 ======== ========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/PIMCO ULTRA SHORT BOND* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 9,532 $ 9,330 Net realized gain (loss) on investments.................................................. (10,336) (4,744) Net change in unrealized appreciation (depreciation) of investments...................... (5,432) (7,078) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (6,236) (2,492) ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 264,870 411,224 Transfers between Variable Investment Options including guaranteed interest account, net. (164,102) (264,823) Redemptions for contract benefits and terminations....................................... (467,732) (403,727) Contract maintenance charges............................................................. (16,291) (24,064) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (383,255) (281,390) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (20) 25 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (389,511) (283,857) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,468,681 2,752,538 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,079,170 $2,468,681 ========== ==========
EQ/QUALITY BOND PLUS* ----------------- 2015 2014 ------- -------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 74 $ 139 Net realized gain (loss) on investments.................................................. 12 (2,196) Net change in unrealized appreciation (depreciation) of investments...................... (67) 2,909 ------- -------- Net increase (decrease) in net assets resulting from operations.......................... 19 852 ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... -- -- Transfers between Variable Investment Options including guaranteed interest account, net. (2,252) -- Redemptions for contract benefits and terminations....................................... -- (36,878) Contract maintenance charges............................................................. (104) (321) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (2,356) (37,199) ------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (2,337) (36,347) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 9,406 45,753 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,069 $ 9,406 ======= ========
EQ/SMALL COMPANY INDEX* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 41,195 $ 38,764 Net realized gain (loss) on investments.................................................. 607,027 1,090,363 Net change in unrealized appreciation (depreciation) of investments...................... (842,157) (879,803) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (193,935) 249,324 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 486,363 526,792 Transfers between Variable Investment Options including guaranteed interest account, net. (253,712) (621,356) Redemptions for contract benefits and terminations....................................... (893,039) (684,775) Contract maintenance charges............................................................. (39,826) (47,795) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (700,214) (827,134) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (894,149) (577,810) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 5,293,190 5,871,000 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $4,399,041 $5,293,190 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/T. ROWE PRICE GROWTH STOCK* ------------------- 2015 2014 --------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (97) $ (59) Net realized gain (loss) on investments.................................................. 62,520 13,901 Net change in unrealized appreciation (depreciation) of investments...................... (26,733) 11,694 --------- -------- Net increase (decrease) in net assets resulting from operations.......................... 35,690 25,536 --------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 77,527 92,646 Transfers between Variable Investment Options including guaranteed interest account, net. 47,693 168,907 Redemptions for contract benefits and terminations....................................... (150,884) (38,028) Contract maintenance charges............................................................. (3,208) (2,764) --------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (28,872) 220,761 --------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- --------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 6,818 246,297 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 415,085 168,788 --------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 421,903 $415,085 ========= ========
EQ/WELLS FARGO OMEGA GROWTH* ------------------- 2015 2014 -------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (59) $ (38) Net realized gain (loss) on investments.................................................. 27,196 63,014 Net change in unrealized appreciation (depreciation) of investments...................... (21,311) (53,460) -------- --------- Net increase (decrease) in net assets resulting from operations.......................... 5,826 9,516 -------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 83,351 61,810 Transfers between Variable Investment Options including guaranteed interest account, net. 23,461 (26,803) Redemptions for contract benefits and terminations....................................... (71,247) (252,591) Contract maintenance charges............................................................. (3,005) (3,692) -------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 32,560 (221,276) -------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 4 -------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 38,386 (211,756) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 417,856 629,612 -------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $456,242 $ 417,856 ======== =========
MULTIMANAGER CORE BOND* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 26,376 $ 17,434 Net realized gain (loss) on investments.................................................. (13,766) (8,275) Net change in unrealized appreciation (depreciation) of investments...................... (14,469) 16,626 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (1,859) 25,785 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 400,036 210,996 Transfers between Variable Investment Options including guaranteed interest account, net. 487,342 175,573 Redemptions for contract benefits and terminations....................................... (304,780) (125,608) Contract maintenance charges............................................................. (10,317) (7,285) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 572,281 253,676 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 570,422 279,461 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,058,625 779,164 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,629,047 $1,058,625 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
MULTIMANAGER TECHNOLOGY* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (1,081) $ (914) Net realized gain (loss) on investments.................................................. 691,582 791,704 Net change in unrealized appreciation (depreciation) of investments...................... (396,663) (244,342) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 293,838 546,448 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 358,375 888,183 Transfers between Variable Investment Options including guaranteed interest account, net. (375,154) 72,040 Redemptions for contract benefits and terminations....................................... (475,386) (617,477) Contract maintenance charges............................................................. (35,888) (38,773) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (528,053) 303,973 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (234,215) 850,421 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 4,798,253 3,947,832 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $4,564,038 $4,798,253 ========== ==========
TARGET 2015 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 24,585 $ 29,889 Net realized gain (loss) on investments.................................................. 34,361 435,600 Net change in unrealized appreciation (depreciation) of investments...................... (101,199) (395,052) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (42,253) 70,437 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 86,372 545,158 Transfers between Variable Investment Options including guaranteed interest account, net. 300,394 207,279 Redemptions for contract benefits and terminations....................................... (790,489) (598,559) Contract maintenance charges............................................................. (20,597) (22,809) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (424,320) 131,069 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- (4) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (466,573) 201,502 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,529,528 2,328,026 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,062,955 $2,529,528 ========== ==========
TARGET 2025 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 32,437 $ 31,743 Net realized gain (loss) on investments.................................................. 76,906 495,467 Net change in unrealized appreciation (depreciation) of investments...................... (163,640) (404,840) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (54,297) 122,370 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 426,659 973,126 Transfers between Variable Investment Options including guaranteed interest account, net. (4,760) 66,457 Redemptions for contract benefits and terminations....................................... (385,252) (993,371) Contract maintenance charges............................................................. (21,812) (26,727) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 14,835 19,485 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (39,462) 141,855 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,617,769 2,475,914 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,578,307 $2,617,769 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
TARGET 2035 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 20,844 $ 20,594 Net realized gain (loss) on investments.................................................. 90,192 235,306 Net change in unrealized appreciation (depreciation) of investments...................... (140,669) (189,521) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (29,633) 66,379 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 473,611 430,429 Transfers between Variable Investment Options including guaranteed interest account, net. (200,836) 19,447 Redemptions for contract benefits and terminations....................................... (238,123) (204,392) Contract maintenance charges............................................................. (13,992) (14,856) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 20,660 230,628 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (8,973) 297,007 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,654,545 1,357,538 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,645,572 $1,654,545 ========== ==========
TARGET 2045 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 17,631 $ 16,036 Net realized gain (loss) on investments.................................................. 66,074 179,956 Net change in unrealized appreciation (depreciation) of investments...................... (111,882) (142,572) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (28,177) 53,420 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 378,976 255,962 Transfers between Variable Investment Options including guaranteed interest account, net. 22,072 34,274 Redemptions for contract benefits and terminations....................................... (265,337) (156,900) Contract maintenance charges............................................................. (11,727) (11,465) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 123,984 121,871 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 95,807 175,291 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,237,298 1,062,007 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,333,105 $1,237,298 ========== ==========
TARGET 2055 ALLOCATION*(B) -------------- 2015 -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 457 Net realized gain (loss) on investments.................................................. 25 Net change in unrealized appreciation (depreciation) of investments...................... (2,265) ------- Net increase (decrease) in net assets resulting from operations.......................... (1,783) ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 3,170 Transfers between Variable Investment Options including guaranteed interest account, net. 31,248 Redemptions for contract benefits and terminations....................................... -- Contract maintenance charges............................................................. (106) ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 34,312 ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 32,529 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. -- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $32,529 =======
----------- 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)Units were made available on May 26, 2015. FSA-66 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 1. Organization Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled), and 66 (collectively, the "Funds" or "Accounts") of AXA Equitable Life Insurance Company ("AXA Equitable"), were established under New York State Insurance Law. Pursuant to such law, to the extent provided in the applicable contracts, the net assets in the Funds are not chargeable with liabilities arising out of any other business of AXA Equitable. The Funds are investment companies and, accordingly, follow the investment company accounting 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"). These financial statements reflect the financial position and results of operations for each of the Separate Accounts No. 10, 4, 3 and each of the Variable Investment Options of Separate Account No. 66. Annuity contracts issued by AXA Equitable for which the Accounts are the funding vehicles are Equi-Pen-Plus ("EPP"), Members Retirement Program ("MRP"), and Retirement Investment Account ("RIA") (collectively, "the Plans"). Institutional Contracts reflects investments in Funds by Contractowners of group annuity contracts issued by AXA Equitable. Assets of the Plans and Institutional are invested in a number of investment Funds (available Funds vary by Plan). Separate Account No. 66 consists of 45 Variable Investment Options. The Account invests in shares of mutual funds of AXA Premier VIP Trust ("VIP") and EQ Advisors Trust ("EQAT") (collectively "the Trusts"). The Trusts are open-end 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. As used herein, "the Trusts" refers to both the Trusts and the Portfolios. These financial statements and notes are those of the Accounts. The Contractowners invest in Separate Accounts No. 10, 4, 3 and 66 under the following respective names:
POOLED SEPARATE ACCOUNT FUNDS** RIA ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Common Stock Fund Separate Account No. 3 The AllianceBernstein Mid Cap Growth Fund EQ ADVISORS TRUST* Separate Account No. 66: ------------------ AXA Global Equity Managed Volatility EQ/Large Cap Growth Index AXA International Core Managed EQ/Mid Cap Index Volatility EQ/Money Market AXA International Value Managed EQ/Quality Bond PLUS Volatility EQ/T. Rowe Price Growth Stock AXA Large Cap Core Managed Volatility EQ/Wells Fargo Omega Growth AXA Large Cap Growth Managed Multimanager Technology Volatility AXA PREMIER VIP TRUST* AXA Large Cap Value Managed Volatility Charter/SM/ Multi-Sector Bond AXA Mid Cap Value Managed Volatility Charter/SM/ Small Cap Value AXA/AB Small Cap Growth/(1)/ EQ/BlackRock Basic Value Equity EQ/Calvert Socially Responsible EQ/Capital Guardian Research EQ/Equity 500 Index EQ/Intermediate Government Bond EQ/International Equity Index EQ/JPMorgan Value Opportunities MRP POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Growth Equity Fund Separate Account No. 3 The AllianceBernstein Mid Cap Growth Fund Separate Account No. 66: EQ ADVISORS TRUST* AXA PREMIER VIP TRUST* ------------------ ---------------------- All Asset Aggressive - Alt 25 AXA Aggressive Allocation All Asset Growth - Alt 20 AXA Conservative Allocation All Asset Moderate Growth - Alt 15 AXA Conservative-Plus Allocation AXA Global Equity Managed Volatility AXA Moderate Allocation AXA International Core Managed AXA Moderate-Plus Allocation Volatility Charter/SM/ Multi-Sector Bond AXA Large Cap Growth Managed Target 2015 Allocation Volatility Target 2025 Allocation AXA Large Cap Value Managed Volatility Target 2035 Allocation AXA Mid Cap Value Managed Volatility Target 2045 Allocation AXA/AB Small Cap Growth/(1)/ Target 2055 Allocation EQ/Boston Advisors Equity Income EQ/Calvert Socially Responsible EQ/Capital Guardian Research EQ/Equity 500 Index EQ/GAMCO Mergers and Acquisitions EQ/GAMCO Small Company Value EQ/Intermediate Government Bond EQ/International Equity Index EQ/Large Cap Growth Index EQ/MFS International Growth EQ/Mid Cap Index EQ/Money Market EQ/Morgan Stanley Mid Cap Growth EQ/PIMCO Ultra Short Bond EQ/Small Company Index EQ/T. Rowe Price Growth Stock EQ/Wells Fargo Omega Growth Multimanager Core Bond Multimanager Technology
FSA-67 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 1. Organization (Concluded) EPP POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Common Stock Fund INSTITUTIONAL POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 Balanced Account Separate Account No. 4 Growth Stock Account Separate Account No. 3 Mid Cap Growth Stock Account ---------- * 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. **As defined in the respective Prospectus of the Plans. (1)Formerly known as EQ/AllianceBernstein Small Cap Growth Under applicable insurance law, the assets and liabilities of the Accounts are clearly identified and distinguished from AXA Equitable's other assets and liabilities. All Contracts are issued by AXA Equitable. The assets of the Accounts are the property of AXA Equitable. However, the portion of the Accounts' assets attributable to the Contracts will not be chargeable with liabilities arising out of any other business AXA Equitable may conduct. Separate Account No. 66 is used to fund benefits under group annuity Contract ("Contracts") in connection with retirement savings on a tax-deferred basis. The amount retained by AXA Equitable in Separate Accounts No. 4 and 66 arises primarily from (1) contributions from AXA Equitable, (2) expense risk charges accumulated in the account, and (3) 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 contractowners. Amounts retained by AXA Equitable are not subject to charges for expense risks, assets-based administration charges are distribution charges. Amount retained by AXA Equitable in the Account may be transferred at any time by AXA Equitable to its General Account ("General Account"). AXA Equitable's General Account is subject to creditor rights. 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 income and expenses for the period. Actual results could differ from those estimates. ACCOUNTING POLICIES SPECIFIC TO SEPARATE ACCOUNTS NO. 10, 4 AND 3: Investment securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by AXA Equitable's investment officers. In general, the market value of securities which are readily available and deemed reliable are determined as follows: Securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price. Futures and forward contracts are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used. U.S. government securities and other debt instruments having 60 days or less remaining until maturity are valued at amortized cost if their original maturity was 60 days or less; or by amortizing their fair value as of the 61st day prior to maturity if their original term to maturity exceeded 60 days. Fixed-income securities, including mortgage backed and asset backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker/dealers. In cases where broker/dealer quotes are obtained, the investment advisor may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. FSA-68 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Continued) Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. Other assets that do not have a readily available market price are valued at fair value as determined in good faith by AXA Equitable's investment officers. INVESTMENT TRANSACTIONS: Security transactions are recorded on the trade date. Amortized cost of debt securities where applicable is adjusted for amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date; interest income (including amortization of premium and discount on securities using the effective yield method) is accrued daily. Realized gains and losses on the sale of investments are computed on the basis of the identified cost of the related investments sold. The books and records of the Accounts are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Transaction gains or losses resulting from changes in the exchange rate during the reporting period or upon settlement of the foreign currency transactions are reflected under "Realized and Unrealized Gain (Loss) on Investments" in the Statement of Operations. Although the net assets of the Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held or sold during the year. FUTURES AND FORWARD CONTRACTS: Futures and forward contracts are agreements to buy or sell a security, foreign currency, or stock index for a set price in the future. Initial margin deposits are made upon entering into futures contracts and can be either in cash or securities. Separate Accounts No. 10 and 4 may buy or sell futures contracts solely for the purpose of protecting their Account's securities against anticipated future changes in interest rates that might adversely affect the value of an Account's securities or the price of the securities that an Account intends to purchase at a later date. During the period the futures and forward contracts are open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each trading day. Variation margin payments for futures contracts are received or made, depending upon whether unrealized gains or losses are incurred. For the year ended December 31, 2015, the average monthly notional value of futures contracts held in Separate Account No. 4 was $578,119. All futures contracts were related to equity contracts. For the year ended December 31, 2015, Separate Account No. 10 did not enter into any futures contracts. Separate Account No. 3 does not enter into futures contracts. When the futures or forward contract is closed, the Accounts record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Accounts' basis in the contract. Should interest rates or the price of securities move unexpectedly, the Accounts may not achieve the anticipated benefits of the financial futures or forward contracts and may incur a loss. The use of futures and forward transactions involves the risk of imperfect correlation in movements in the prices of futures and forward contracts, interest rates and the underlying hedged assets. Separate Account No. 10 may enter into forward currency contracts in order to hedge its exposure to changes in foreign security holdings, but did not enter into any forward currency contracts during the year ended December 31, 2015. Separate Accounts No. 3, and 4 do not enter into forward currency contracts. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The realized gain or loss arising from the difference between the original contracts and the closing of such contracts is included in realized gains and losses from foreign currency transactions. FSA-69 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Continued) MARKET AND CREDIT RISK: Futures and forward contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The contract amounts of these futures and forward contracts reflect the extent of the Accounts' exposure to off-balance sheet risk. Use of long futures contracts subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. The Accounts bear the market risk that arises from any changes in security values. The credit risk for futures contracts is limited to failure of the exchange or board of trade that acts as the counterparty of the Accounts' futures transactions. Forward contracts are entered into directly with a counterparty and not through an exchange and can be terminated only by agreement of both parties to the contract. There is no daily margin settlement and the Accounts are exposed to the risk of default by the counterparty. CONTRACTS IN PAYOUT: Net assets allocated to Contracts in the payout period are computed according to various mortality tables, depending on the year the benefits were purchased. The tables used are the 1951 GA, the 1971 GAM, the 1983 GAM, and the 1994 GAR. The assumed investment returns vary by Contract and range from 4 percent to 8.75 percent. The Contracts are participating group annuities, and thus, the mortality risk is borne by the Contractowner, as long as the Contract has not been discontinued. AXA Equitable retains the ultimate obligation to pay the benefits if the Contract funds become insufficient and the Contractowner elects to discontinue the contract. OTHER ASSETS AND LIABILITIES: Amounts due to/from the General Account represent receivables/payables for policy related transactions predominantly related to premiums, surrenders and death benefits. CONTRACT PAYMENTS AND WITHDRAWALS: Payments received from Contractowners represent contributions under the Contracts (excluding amounts allocated to the guaranteed interest option, reflected in the General Account) after the deduction of any applicable withdrawal changes. The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. Withdrawals are payments to participants and beneficiaries made under the terms of the Plans and include amounts that participants have requested to be withdrawn and paid to them. 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 Funds 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 the Contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable to the Account if the law is changed. FOREIGN TAXES: The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. ACCOUNTING POLICIES SPECIFIC TO SEPARATE ACCOUNT NO. 66: INVESTMENTS: Investments are made in shares of the Portfolios and the fair values of investments are valued at 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 distributions of net realized gains from the Portfolios are recorded and automatically reinvested on the ex-dividend date. Realized gains and losses include (1) gains and losses on the redemptions of investments in the Portfolios (determined on the identified cost basis) and (2) distributions of net realized gains on investment transactions of the Portfolios. FSA-70 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 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 the various Portfolios by Contractowners. Receivable/payable for shares of the Portfolios sold/purchased represent unsettled trades. CONTRACT PAYMENTS AND TRANSFERS: Payments received from Contractowners represent participant contributions under the Contracts (but exclude amounts allocated to the guaranteed interest account, reflected in the General Account) reduced by deductions and charges, including premium charges, as applicable, and state premium taxes. Contractowners may allocate amounts in their individual accounts to Variable Investment Options of the Account and/or to the guaranteed interest account of AXA Equitable's General Account. 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. 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 or applied to the purchase of annuities. 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 Funds 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 the Contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable 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 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. FSA-71 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 3. Fair Value Disclosures (Continued) Assets measured at fair value on a recurring basis are summarized below as of the dates indicated:
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2015 ----------------------------------- LEVEL 1 ----------------------------------- SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ----------- ----------- ----------- ASSETS Investments: Common stocks Consumer discretionary...................... $ 1,721,365 $17,517,503 $ 6,255,483 Consumer staples............................ 878,745 9,202,128 692,368 Energy...................................... 505,166 419,992 246,131 Financials.................................. 1,849,254 4,543,604 2,996,106 Health Care................................. 1,371,484 14,052,418 3,694,953 Industrials................................. 808,920 8,791,703 -- Materials & processing...................... 328,644 2,840,301 509,631 Producer durables........................... -- -- 3,632,684 Technology.................................. 2,173,968 22,948,921 3,803,937 Telecommunication services.................. 176,521 1,673,187 -- Utilities................................... 334,035 28,130 361,548 ----------- ----------- ----------- TOTAL COMMON STOCKS........................ 10,148,102 82,017,887 22,192,841 Futures Contracts........................... -- 305,310 -- Rights...................................... 883 -- -- ----------- ----------- ----------- TOTAL LEVEL 1............................... $10,148,985 $82,323,197 $22,192,841 =========== =========== =========== LEVEL 2 ----------------------------------- SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ----------- ----------- ----------- ASSETS Investments: Fixed Maturities, available for sale Corporate................................... $ 2,971,354 $ -- $ -- U.S. Treasury, government and agency........ 4,891,108 -- -- States and political subdivision............ 36,407 -- -- Foreign governments......................... 90,798 -- -- Commercial mortgage-backed.................. 367,131 -- -- Residential mortgage-backed................. 2,363,345 -- -- Asset-backed................................ 132,272 -- -- ----------- ----------- ----------- TOTAL FIXED MATURITIES, AVAILABLE FOR SALE. 10,852,415 -- -- ----------- ----------- ----------- Common stocks Consumer discretionary...................... 747,570 -- -- Consumer staples............................ 861,487 -- -- Energy...................................... 361,542 -- -- Financials.................................. 1,296,875 -- -- Health care................................. 784,599 -- -- Industrials................................. 711,638 -- -- Materials & processing...................... 420,924 -- -- Technology.................................. 174,430 -- -- Telecommunication services.................. 341,177 -- -- Utilities................................... 212,291 -- -- ----------- ----------- ----------- TOTAL COMMON STOCKS........................ 5,912,533 -- -- =========== =========== =========== TOTAL LEVEL 2.............................. $16,764,948 $ -- $ -- =========== =========== ===========
FSA-72 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 3. Fair Value Disclosures (Concluded)
LEVEL 3 ------------------------------ SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ---------- --------- --------- ASSETS Investments: Fixed Maturities, available for sale Commercial mortgage-backed................. $35,860 $-- $-- Asset-backed............................... 25,148 -- -- ------- --- --- TOTAL LEVEL 3................................ $61,008 $-- $-- ======= === ===
The table below presents a reconciliation for all Level 3 Assets at December 31, 2015:
LEVEL 3 INSTRUMENTS FAIR VALUE MEASUREMENTS SEPARATE ACCOUNT NO. 10 ----------------------------------------------- FIXED MATURITIES COMMON STOCK -------------------- ------------ COMMERCIAL MORTGAGE- ASSET- TOTAL BACKED BACKED INDUSTRIALS INVESTMENTS ---------- -------- ------------ ----------- BALANCE, DECEMBER 31, 2014................... $37,567 $ 63,646 $ 224 $101,437 Total gains (losses) realized and unrealized, included in: Earnings as: Net amortization/accretion................. (42) 39 -- (3) ------- -------- ----- -------- SUBTOTAL.................................. 37,525 63,685 224 101,434 ------- -------- ----- -------- Change in unrealized gain.................. 3,798 67 2 3,867 Purchases.................................. -- -- -- -- Sales...................................... -- -- (226) (226) Settlements................................ (5,463) (6,635) -- (12,098) Transfers out/(2)/......................... -- (31,969) -- (31,969) ------- -------- ----- -------- BALANCE, DECEMBER 31, 2015................... $35,860 $ 25,148 $ -- $ 61,008 ======= ======== ===== ========
---------- (1)For Separate Account No. 66, 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 for Separate Account No. 66. (2)For the year ended December 31, 2015, an asset-backed security transferred from level 3 to level 2 due to changes in observability of market data at the measurement date. The table below details the changes in unrealized gains for 2015 by category for Level 3 assets still held at December 31, 2015:
SEPARATE ACCOUNT NO. 10 ---------------- LEVEL 3 INSTRUMENTS STILL HELD AT DECEMBER 31, 2015 Change in unrealized gains or losses Fixed maturities, available for sale: Commercial mortgage-backed.................. $3,798 Asset-backed................................ 67 ------ TOTAL FIXED MATURITIES, AVAILABLE FOR SALE. 3,865 ------ Common Stocks: Financials.................................. 2 ------ TOTAL......................................... $3,867 ======
FSA-73 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 4. Purchases and Sales of Portfolios Investment Security Transactions: For the year ended December 31, 2015, investment security transactions, excluding short-term debt securities, were as follows for Separate Accounts No. 10, 4, and 3:
PURCHASES SALES ---------------------------- ---------------------------- U.S. U.S. STOCKS AND GOVERNMENT STOCKS AND GOVERNMENT FUND DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES ---- --------------- ------------ --------------- ------------ Separate Account No. 10...................... $35,103,311 $6,032,192 $36,692,380 $7,427,445 Separate Account No. 4....................... 17,214,855 -- 30,118,005 -- Separate Account No. 3....................... 19,107,087 -- 22,173,937 --
The cost of purchases and proceeds from sales of Portfolios for the year ended December 31, 2015 were as follows for Separate Account No. 66: PURCHASES SALES ---------- ---------- ALL ASSET AGGRESSIVE-ALT 25.................. $ 59,106 $ 3,219 ALL ASSET GROWTH-ALT 20...................... 25,637 38,193 ALL ASSET MODERATE GROWTH-ALT 15............. 4,438 1,135 AXA AGGRESSIVE ALLOCATION.................... 529,311 271,625 AXA CONSERVATIVE ALLOCATION.................. 266,955 262,101 AXA CONSERVATIVE-PLUS ALLOCATION............. 290,022 155,742 AXA GLOBAL EQUITY MANAGED VOLATILITY......... 167,446 364,586 AXA INTERNATIONAL CORE MANAGED VOLATILITY.... 158,518 619,567 AXA INTERNATIONAL VALUE MANAGED VOLATILITY... 2,338 2,230 AXA LARGE CAP CORE MANAGED VOLATILITY........ -- 90,641 AXA LARGE CAP GROWTH MANAGED VOLATILITY...... 481,018 1,007,376 AXA LARGE CAP VALUE MANAGED VOLATILITY....... 586,045 1,433,283 AXA MID CAP VALUE MANAGED VOLATILITY......... 456,942 1,579,840 AXA MODERATE ALLOCATION...................... 4,310,816 2,847,303 AXA MODERATE-PLUS ALLOCATION................. 540,784 137,021 AXA/AB SMALL CAP GROWTH...................... 240,851 257,530 CHARTER/SM/ MULTI-SECTOR BOND................ 240,367 105,960 CHARTER/SM/ SMALL CAP VALUE.................. 1,017 48,118 EQ/BLACKROCK BASIC VALUE EQUITY.............. 4,302 12,045 EQ/BOSTON ADVISORS EQUITY INCOME............. 279,736 199,832 EQ/CALVERT SOCIALLY RESPONSIBLE.............. 485,740 707,143 EQ/CAPITAL GUARDIAN RESEARCH................. 518,922 1,095,169 EQ/EQUITY 500 INDEX.......................... 2,346,967 4,022,016 EQ/GAMCO MERGERS AND ACQUISITIONS............ 21,489 5,229 EQ/GAMCO SMALL COMPANY VALUE................. 510,445 460,653 EQ/INTERMEDIATE GOVERNMENT BOND.............. 995,091 1,003,119 EQ/INTERNATIONAL EQUITY INDEX................ 1,082,474 1,505,463 EQ/JPMORGAN VALUE OPPORTUNITIES.............. 45,464 1,326 EQ/LARGE CAP GROWTH INDEX.................... 555,907 271,328 EQ/MFS INTERNATIONAL GROWTH.................. 123,600 190,749 EQ/MID CAP INDEX............................. 277,901 96,912 EQ/MONEY MARKET.............................. 8,395,347 8,526,931 EQ/MORGAN STANLEY MID CAP GROWTH............. 71,930 75,365 EQ/PIMCO ULTRA SHORT BOND.................... 326,797 700,605 EQ/QUALITY BOND PLUS......................... 79 2,361 EQ/SMALL COMPANY INDEX....................... 798,992 1,088,810 EQ/T. ROWE PRICE GROWTH STOCK................ 292,785 304,955 EQ/WELLS FARGO OMEGA GROWTH.................. 182,342 116,042 MULTIMANAGER CORE BOND....................... 1,021,444 422,729 MULTIMANAGER TECHNOLOGY...................... 706,969 906,502 FSA-74 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 4. Purchases and Sales of Portfolios (Concluded) PURCHASES SALES --------- -------- TARGET 2015 ALLOCATION............................ $508,721 $876,431 TARGET 2025 ALLOCATION............................ 538,194 456,719 TARGET 2035 ALLOCATION............................ 492,584 426,124 TARGET 2045 ALLOCATION............................ 401,348 237,823 TARGET 2055 ALLOCATION............................ 34,909 106 5. Related Party Transactions In Separate Account No. 66, 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 in are categorized by the share class of the Portfolio. All share classes issued by the Trusts are subject to fees for investment management and advisory services and other Portfolio expenses and are subject to distribution fees imposed under a distribution plan (herein the "Rule 12b-1 Plans") approved by EQAT and VIP Trusts' Board of Trustees and adopted by the applicable Trust. The Rule 12b-1 Plans provide that the Trusts, on behalf of each related Variable 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 respect of activities primarily intended to result in the sale of the respective shares. The class-specific expenses attributable to the investment in each share class of the Portfolios in which the Variable Investment Option invest are borne by the specific unit classes of the Variable Investment Options to which the investments are attributable. These fees are reflected in the net asset value of the shares of the Portfolios and the total returns of the Variable Investment Options, but are not included in the expenses or expense ratios of the Variable Investment Options. AXA Equitable Funds Management Group, LLC ("FMG LLC"), a wholly-owned subsidiary of AXA Equitable serves as investment manager of the Portfolios of the Trusts. FMG LLC receives management fees for services performed in its capacity as investment manager of the Portfolios. FMG LLC either oversees the activities of the investment advisors with respect to the Portfolios, and is responsible for retaining or discontinuing the services of those advisors, or are directly managing the Portfolios. Expenses of the Portfolios of the Trusts generally vary, depending on net asset levels for individual Portfolios, and range from a low annual rate of 0.14% to a high of 1.31% of the average daily net assets of the Portfolios of the Trusts. AXA Equitable, as investment manager of the Trusts, pays expenses for providing investment advisory services to the respective Portfolios, including the fees to the Advisors of each Portfolio. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC, affiliates of AXA Equitable, may also receive distribution fees under Rule 12b-1 Plans as described above. 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, but are not included in the expenses or expense ratios of the Variable Investment Options. AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor for the AXA/AB Small Cap Growth; EQ/Equity 500 Index; EQ/International Equity Index; EQ/Large Cap Growth Index; EQ/Small Company Index and Separate Accounts No. 10, 4 and 3; as well as a portion of AXA Large Cap Value Managed Volatility and EQ/Quality Bond PLUS. AllianceBernstein is a publicly traded limited partnership which is indirectly majority-owned by AXA Equitable and AXA Financial, Inc. (parent of AXA Equitable). AXA Advisors, LLC is an affiliate of AXA Equitable, and a distributor and principal underwriter of the policies ("Contracts"). AXA Advisors is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer and is a member of the Financial Industry Regulatory Authority ("FINRA"). 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 (affiliates of AXA Equitable). AXA Advisors receives commissions and other service-related payments under its distribution agreement with AXA Equitable and its networking agreement with AXA Network. In addition to using brokers and dealers to execute portfolio security transactions for accounts under their management, AXA Equitable, AllianceBernstein, and AXA Advisors may also enter into other types of business and securities transactions with brokers and dealers, which will be unrelated to allocation of the AXA Equitable Funds' portfolio transactions. AXA Equitable serves as the transfer agent for EQAT and VIP. 6. Reorganizations In 2014, several fund reorganizations occurred within EQAT and VIP. The corresponding reorganizations occurred within the Variable Investment Options of the Account. The purpose of the reorganizations was to combine or substitute, via tax free exchanges, two Variable Investment Options managed by AXA Equitable with comparable investment objectives. FSA-75 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 6. Reorganizations (Concluded) In June 2014, pursuant to a Plan of Reorganization and Termination, mergers were approved by shareholders, whereby certain Portfolios of EQAT and VIP (the "Removed Portfolios") exchanged substantially all of their assets and liabilities for interests in certain other Portfolios of EQAT and VIP (the "Surviving Portfolios"). Correspondingly, the Variable Investment Options that invested in the Removed Portfolios (the "Removed Investment Options") were replaced with the Variable Investment Options that invest in the Surviving Portfolios (the "Surviving Investment Options"). For accounting purposes, reorganizations which occurred in 2014 were treated as mergers.
---------------------------------------------------------------------------- REMOVED PORTFOLIO SURVIVING PORTFOLIO ---------------------------------------------------------------------------- JUNE 20, 2014 EQ/EQUITY GROWTH PLUS AXA LARGE CAP GROWTH MANAGED VOLATILITY ---------------------------------------------------------------------------- Shares -- Class B 4 1,226 Value -- Class B $21.71 $ 25.54 Net Assets Before Merger $ 80 $31,236 Net Assets After Merger $ -- $31,316 Unrealized Gain $ 2 ----------------------------------------------------------------------------
7. Contractowner Charges Charges and fees relating to the Portfolios are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Portfolios. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value. RIA Charges and fees relating to the Portfolios are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Portfolios. Depending upon the terms of a contract, sales-related fees and operating expenses are paid by the contract holders (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value from contractowners. Fees with respect to the Retirement Investment Account (RIA) contracts are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.50% of the net assets attributable to RIA units is assessed for the AllianceBernstein Balanced Fund, and AllianceBernstein Mid Cap Growth Fund and an effective annual rate of 0.08% for the AllianceBernstein Common Stock Fund. This fee is reflected as a reduction in RIA unit value. ADMINISTRATIVE FEES: Contracts investing in the Portfolios are subject to certain administrative expenses according to contract terms. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value. These fees may include: Ongoing Operations Fee -- An expense charge is made based on the combined net balances of each fund. Depending upon when the employer adopted RIA, the monthly rate ranges from 1/12 of 1.25% to 1/12 of 0.50% or from 1/12 of 1.25% to 1/12 of 0.25%. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Participant Recordkeeping Services Charge -- Employers electing RIA's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Contingent Withdrawal Charge -- Certain withdrawals are subject to defined contingent withdrawal charges. The maximum charge is 6.00% of the total plan assets withdrawn and is deducted as a liquidation of Portfolio units. Loan Fee -- A loan fee equal to 1.00% of the amount withdrawn as loan principal is deducted on the date the plan loan is made. OPERATING AND EXPENSE CHARGES: In addition to the charges and fees mentioned above, Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as reductions of unit value. FSA-76 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 7. Contractowner Charges (Continued) MRP Charges and fees relating to the Portfolios paid to AXA Equitable are deducted in accordance with the terms of the various contracts which participate in the Portfolios. With respect to the Members Retirement Program these expenses consist of investment management, program expense charge, direct expenses, and record maintenance. These charges and fees are paid to AXA Equitable. Fees with respect to the Members Retirement Program contracts are as follows: . Program Expense Charge -- AXA Equitable assesses a Program expense charge on a monthly basis, which is charged against accounts in the plans that invest in the Separate Accounts. AXA Equitable determines the Program expense charge for each plan on the last day of each month, based on two factors: (1) the average account value of the accounts in the plan, and (2) the value of the total plan assets invested in the Members Retirement Program by the plan, on that date. The Program expense charge is applied to all assets in the plan. All participants in a plan pay the Program expense charge at the same percentage rate, regardless of individual account value. If the Average account value under the Plan is $75,000 or less, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.80% of the next $250,000 and (iii) 0.65% of the excess over $500,000. If the Average account value under the Plan is more than $75,000, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.70% of the next $250,000 and (iii) 0.55% of the excess over $500,000. . Investment Management Fees -- An expense charge is made daily at an effective annual rate of 0.50% of the net assets of the AllianceBernstein Balanced Fund and an effective annual rate of 0.30% for the AllianceBernstein Growth Equity Fund and an effective annual rate of 0.65% for the AllianceBernstein Mid Cap Growth Fund. This fee is reflected as a reduction in MRP unit value. . Direct Operating and Other Expenses -- In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. This fee is reflected as a reduction in MRP unit value. . A record maintenance and report fee of $3.75 per participant is deducted quarterly as a liquidation of fund units. EPP Charges and fees relating to the Funds are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts, which participate in the Funds. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) reduction in unit value. Fees with respect to the Equi-Pen-Plus Master Plan and Retirement Trust are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.25% of the total plan and trust net assets is deducted daily for the AllianceBernstein Balanced Fund and an annual rate of 0.08% for the AllianceBernstein Common Stock Fund. This fee is reflected as reduction in EPP unit value. ADMINISTRATIVE FEES: Ongoing Operations Fee -- An expense charge is made based on each client's combined balance of Master Plan and Trust net assets in the Funds and AXA Equitable's Fixed Income Accounts at a monthly rate of 1/12 of (i) 1% of the first $500,000, (ii) 0.75% of the next $500,000 and (iii) 0.50% of the excess over $1,000,000. The ongoing operations fee is generally paid via a liquidation of units held in the fund. Participant Recordkeeping Services Charge -- Employers electing Equi-Pen-Plus's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. The participant recordkeeping service charge is generally paid via a liquidation of units held in the fund. Withdrawal Charge -- A charge is applied if the client terminates plan participation in the Master Retirement Trust ("Master Trust") and if the client transfers assets to another funding agency before the fifth anniversary of the date AXA Equitable accepts the participation agreement. The redemption charge is generally paid via a liquidation of units held in the fund and will be based on the following schedule: FOR TERMINATION OCCURRING IN: WITHDRAWAL CHARGE: ----------------------------- ------------------------------ Years 1 and 2.......... 3% of all Master Trust assets Years 3 and 4.......... 2% of all Master Trust assets Year 5................. 1% of all Master Trust assets After Year 5........... No Withdrawal Charge FSA-77 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 7. Contractowner Charges (Concluded) OPERATING AND EXPENSE CHARGES: In addition to the charges and fees mentioned above, Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These may include custody, audit and printing of reports. These charges and fees are reflected as reduction of unit value. INSTITUTIONAL ASSET MANAGEMENT FEES Asset management fees are charged to clients investing in the Separate Accounts. The fees are based on the prior month-end net asset value (as defined) of each client's aggregate interest in AXA Equitable's Separate Accounts, and are determined monthly. The fees are calculated for each client in accordance with the schedule set forth below for the Balanced Account and the Mid Cap Growth Stock Account: EACH CLIENT'S AGGREGATE INTEREST ANNUAL RATE -------------------------------- ------------------------------------- Minimum Fee........................... $5,000 First $2 million...................... 0.85 of 1% Next $3 million....................... 0.60 of 1% Next $5 million....................... 0.40 of 1% Next $15 million...................... 0.30 of 1% Next $75 million...................... 0.25 of 1% Excess over $100 million.............. 0.20 of 1% Asset management fees for the Growth Stock Account is an expense charge determined monthly with an effective annual rate of 0.08%. Asset management fees are paid to AXA Equitable. Clients can either pay the fee directly by remittance to the Separate Account or via liquidation of units held in the Separate Accounts. ADMINISTRATIVE FEES Certain client contracts provide for a fee for administrative services to be paid directly to AXA Equitable. This administrative fee is calculated according to the terms of the specific contract and is generally paid via a liquidation of units held in the funds in which the contract invests. The payment of the fee for administrative services has no effect on other Separate Account clients or the unit values of the separate accounts. OPERATING AND EXPENSE CHARGES In addition to the charges and fees mentioned above, the Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These charges may include custody and audit fees, and result in reduction of Separate Account unit values. Administrative fees paid through a liquidation of units in Separate Account No. 66 are shown in the Statements of Changes in Net Assets as Contract maintenance charges. The aggregate of all other fees are included in Asset-based charges in the Statements of Operations. Asset-based charges including accounting and administration fees. 8. Changes in Units Outstanding Accumulation units issued and redeemed as of December 31, 2015 and December 31, 2014, were (in thousands): SEPARATE ACCOUNTS NO. 10, 4 AND 3:
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND COMMON STOCK FUND MID CAP GROWTH FUND ------------------------ ------------------------- ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ RIA Issued....... -- -- -- -- -- -- Redeemed..... (2) (3) -- -- -- (1) -- -- -- -- -- -- Net Decrease. (2) (3) -- -- -- (1) == == == == == ==
FSA-78 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Continued)
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND GROWTH EQUITY FUND MID CAP GROWTH FUND ------------------------ ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ MRP Issued........ 23 30 4 8 12 16 Redeemed...... (70) (63) (12) (12) (36) (41) --- --- --- --- --- --- Net Decrease.. (47) (33) (8) (4) (24) (25) === === === === === === ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND COMMON STOCK FUND ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 ------------ ------------ ------------ ------------ EPP Issued........ -- -- -- -- Redeemed...... -- -- -- -- --- --- --- --- Net Decrease.. -- -- -- -- === === === === MID CAP GROWTH STOCK BALANCED ACCOUNT GROWTH STOCK ACCOUNT ACCOUNT ------------------------ ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ INSTITUTIONAL Issued........ -- -- -- -- -- -- Redeemed...... -- -- -- -- -- -- --- --- --- --- --- --- Net Decrease.. -- -- -- -- -- -- === === === === === ===
Accumulation units issued and redeemed as of December 31, were (in thousands): SEPARATE ACCOUNT NO. 66:
AXA AXA AXA GLOBAL INTERNATIONAL INTERNATIONAL EQUITY CORE VALUE AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP MANAGED MANAGED MANAGED CORE MANAGED GROWTH MANAGED VALUE MANAGED VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY ------------ ------------ ------------ ------------ -------------- ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- -- -- -- -- -- -- -- -- -- 1 Net Redeemed............... -- -- -- (1) -- (1) (1) -- -- -- -- (4) -- -- -- -- -- -- -- -- -- -- -- -- Net Increase /(Decreased).. -- -- -- (1) -- (1) (1) -- -- -- -- (3) == == == == == == == == == == == == AXA MID CAP CHARTER/SM CHARTER/SM/ EQ/BLACKROCK EQ/CALVERT VALUE MANAGED AXA/AB SMALL CAP /MULTI-SECTOR SMALL CAP BASIC VALUE SOCIALLY VOLATILITY GROWTH BOND VALUE EQUITY RESPONSIBLE ------------ ------------ ------------ ------------ -------------- ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- -- -- -- -- -- -- -- -- -- -- Net Redeemed............... -- (1) -- -- -- -- -- (1) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Net Increase /(Decreased).. -- (1) -- -- -- -- -- (1) -- -- -- -- == == == == == == == == == == == ==
FSA-79 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Continued)
EQ/CAPITAL EQ/INTERMEDIATE EQ/JPMORGAN EQ/LARGE CAP GUARDIAN EQ/EQUITY 500 GOVERNMENT EQ/INTERNATIONAL VALUE GROWTH RESEARCH INDEX BOND EQUITY INDEX OPPORTUNITIES INDEX ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- 1 -- -- -- -- -- 1 -- -- -- Net Redeemed............... -- -- -- -- -- -- (1) (1) -- -- -- -- ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. -- -- 1 -- -- -- (1) (1) 1 -- -- -- ==== ==== ==== ==== === === ==== ==== === === === === EQ/MID CAP EQ/MONEY EQ/QUALITY EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER INDEX MARKET BOND PLUS GROWTH STOCK OMEGA GROWTH TECHNOLOGY ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- 2 -- -- -- -- -- -- -- -- -- Net Redeemed............... -- -- (2) -- -- -- -- -- -- (1) -- -- ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. -- -- -- -- -- -- -- -- -- (1) -- -- ==== ==== ==== ==== === === ==== ==== === === === === ALL ASSET AXA ALL ASSET ALL ASSET MODERATE AXA AGGRESSIVE AXA CONSERVATIVE CONSERVATIVE- AGGRESSIVE-ALT 25 GROWTH-ALT 20 GROWTH-ALT 15 ALLOCATION ALLOCATION PLUS ALLOCATION ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 4 1 2 8 1 2 29 34 19 26 20 30 Net Redeemed............... -- -- (3) -- -- (2) (22) (28) (22) (49) (13) (53) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. 4 1 (1) 8 1 -- 7 6 (3) (23) 7 (23) ==== ==== ==== ==== === === ==== ==== === === === === AXA AXA LARGE CAP AXA GLOBAL INTERNATIONAL AXA LARGE CAP GROWTH AXA LARGE CAP AXA MID CAP EQUITY MANAGED CORE MANAGED CORE MANAGED MANAGED VALUE MANAGED VALUE MANAGED VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 10 24 12 20 -- -- 32 59 23 48 16 27 Net Redeemed .............. (24) (38) (47) (48) -- -- (100) (122) (74) (86) (64) (50) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. (14) (14) (35) (28) -- -- (68) (63) (51) (38) (48) (23) ==== ==== ==== ==== === === ==== ==== === === === === AXA EQ/BOSTON EQ/CALVERT AXA MODERATE MODERATE-PLUS AXA/AB SMALL CAP CHARTERSM MULTI- ADVISORS EQUITY SOCIALLY ALLOCATION ALLOCATION GROWTH SECTOR BOND INCOME RESPONSIBLE ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 284 251 37 28 11 20 22 19 17 17 16 27 Net Redeemed .............. (233) (205) (11) (13) (10) (6) (10) (23) (13) (15) (52) (65) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. 51 46 26 15 1 14 12 (4) 4 2 (36) (38) ==== ==== ==== ==== === === ==== ==== === === === === EQ/CAPITAL EQ/GAMCO EQ/INTERMEDIATE GUARDIAN EQ/EQUITY 500 MERGERS AND EQ/GAMCO SMALL GOVERNMENT EQ/INTERNATIONA RESEARCH INDEX ACQUISITIONS COMPANY VALUE BOND EQUITY INDEX ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 16 19 94 204 1 8 15 26 77 63 39 40 Net Redeemed .............. (35) (39) (260) (268) -- (14) (19) (50) (81) (60) (69) (88) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. (19) (20) (166) (64) 1 (6) (4) (24) (4) 3 (30) (48) ==== ==== ==== ==== === === ==== ==== === === === ===
FSA-80 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Concluded)
EQ/MFS EQ/MORGAN EQ/LARGE CAP INTERNATIONAL EQ/MID CAP EQ/MONEY STANLEY GROWTH INDEX GROWTH INDEX MARKET MID CAP GROWTH ----------- ------------ --------------- ------------- ------------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 33 26 10 11 14 28 813 730 5 9 Net Redeemed.............. (18) (16) (16) (3) (5) (11) (825) (751) (6) -- --- --- --- ---- --- --- ---- ---- --- --- Net Increase /(Decreased). 15 10 (6) 8 9 17 (12) (21) (1) 9 === === === ==== === === ==== ==== === === EQ/PIMCO ULTRA EQ/SMALL EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER SHORT BOND COMPANY INDEX GROWTH STOCK OMEGA GROWTH CORE BOND TECHNOLOGY ----------- ------------ --------------- ------------- ------------- ----------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 27 64 15 25 17 22 7 18 97 49 15 55 Net Redeemed.............. (59) (88) (43) (59) (19) (6) (8) (21) (41) (25) (31) (42) --- --- --- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased). (32) (24) (28) (34) (2) 16 (1) (3) 56 24 (16) 13 === === === ==== === === ==== ==== === === === === TARGET 2015 TARGET 2025 TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION ALLOCATION ALLOCATION ALLOCATION ALLOCATION ----------- ------------ --------------- ------------- ------------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 38 63 39 104 36 42 29 26 4 -- Net Redeemed.............. (74) (52) (38) (100) (34) (22) (19) (16) -- -- --- --- --- ---- --- --- ---- ---- --- --- Net Increase /(Decreased). (36) 11 1 4 2 20 10 10 4 -- === === === ==== === === ==== ==== === ===
The -- on the Changes in Units section may represent no units issued and units redeemed or units issued and units redeemed of less than 500. 9. Financial Highlights AXA Equitable issues a number of registered group annuity contracts that allow employer plan assets to accumulate on a tax-deferred basis. The contracts are typically designed for employers wishing to fund defined benefit, defined contribution and/or 401(k) plans. Annuity contracts available through AXA Equitable are the Retirement Investment Account ("RIA"), Members Retirement Program ("MRP"), and Equi-Pen-Plus ("EPP") (collectively, the Plans). Assets of the Plans are invested in a number of investment Funds (available Funds vary by Plan). Institutional units presented on the Statement of Assets and Liabilities reflect investments in the Funds by clients other than contractowners of group annuity contracts issued by AXA Equitable. Institutional unit values are determined at the end of each business day. Institutional unit values reflect the investment performance of the Funds for the day and charges and expenses deducted by the Funds. Contract unit values (RIA, MRP, and EPP) reflect the same investment results, prior to deduction for contract specific charges, earned by the Institutional units. Contract unit values reflect certain investment management and accounting fees, which vary by contract. These fees are charged as a percentage of net assets and are disclosed below for the Plans contracts as percentage of net assets attributable of such units. Shown below is accumulation unit value information for units outstanding of Separate Accounts No. 10, 4, 3 and 66 for the periods indicated.
YEARS ENDED DECEMBER 31, ------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ------- ----------- ------------ -------- -------- SEPARATE ACCOUNT NO. 10 ALLIANCEBERNSTEIN BALANCED FUND December 31, 2015 RIA*- contract charge 0.50% (a) $293.64 7 $2,013 0.06% 0.63% December 31, 2014 RIA*- contract charge 0.50% (a) $293.46 9 $2,606 4.40% 0.61% December 31, 2013 RIA*- contract charge 0.50% (a) $281.10 12 $3,355 15.97% 0.71% December 31, 2012 RIA*- contract charge 0.50% (a) $242.40 13 $3,210 13.06% 0.71% December 31, 2011 RIA*- contract charge 0.50% (a) $214.40 15 $3,310 (0.49)% 0.63%
FSA-81 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ---------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ---------- ----------- ------------ -------- -------- December 31, 2015 MRP*- contract charge 0.50% (a) $ 70.27 351 $24,698 0.06% 0.64% December 31, 2014 MRP*- contract charge 0.50% (a) $ 70.23 398 $27,987 4.38% 0.61% December 31, 2013 MRP*- contract charge 0.50% (a) $ 67.28 431 $28,986 15.96% 0.71% December 31, 2012 MRP*- contract charge 0.50% (a) $ 58.02 481 $27,916 13.06% 0.71% December 31, 2011 MRP*- contract charge 0.50% (a) $ 51.32 479 $24,589 (0.50)% 0.63% December 31, 2015 EPP*- contract charge 0.25% (a) $ 309.98 1 $ 190 0.31% 0.39% December 31, 2014 EPP*- contract charge 0.25% (a) $ 309.01 1 $ 197 4.66% 0.36% December 31, 2013 EPP*- contract charge 0.25% (a) $ 295.26 1 $ 233 16.25% 0.46% December 31, 2012 EPP*- contract charge 0.25% (a) $ 253.98 1 $ 185 13.35% 0.46% December 31, 2011 EPP*- contract charge 0.25% (a) $ 224.07 2 $ 408 (0.24)% 0.38% BALANCED ACCOUNT December 31, 2015 Institutional $32,725.90 --(c) $ 24 0.57% 0.14% December 31, 2014 Institutional $32,541.85 --(c) $ 24 4.92% 0.21% December 31, 2013 Institutional $31,015.57 --(c) $ 24 16.55% 0.21% December 31, 2012 Institutional $26,612.24 --(c) $ 2,800 13.66% 0.21% December 31, 2011 Institutional $23,414.58 --(c) $ 2,524 (0.02)% 0.13% SEPARATE ACCOUNT NO. 4 ALLIANCEBERNSTEIN COMMON STOCK FUND December 31, 2015 RIA*- contract charge 0.08% (a) $ 1,586.06 2 $ 2,999 5.65% 0.16% December 31, 2014 RIA*- contract charge 0.08% (a) $ 1,501.17 2 $ 3,544 12.86% 0.14% December 31, 2013 RIA*- contract charge 0.08% (a) $ 1,330.14 2 $ 3,290 33.23% 0.20% December 31, 2012 RIA*- contract charge 0.08% (a) $ 998.36 3 $ 3,083 15.86% 0.11% December 31, 2011 RIA*- contract charge 0.08% (a) $ 861.69 4 $ 3,275 3.57% 0.16% December 31, 2015 EPP*- contract charge 0.08% (a) $ 1,645.69 1 $ 1,391 5.65% 0.16% December 31, 2014 EPP*- contract charge 0.08% (a) $ 1,557.61 1 $ 1,570 12.86% 0.14% December 31, 2013 EPP*- contract charge 0.08% (a) $ 1,380.15 1 $ 1,468 33.23% 0.20% December 31, 2012 EPP*- contract charge 0.08% (a) $ 1,035.90 1 $ 1,102 15.86% 0.11% December 31, 2011 EPP*- contract charge 0.08% (a) $ 894.10 3 $ 2,616 3.57% 0.16% ALLIANCEBERNSTEIN GROWTH EQUITY FUND December 31, 2015 MRP*- contract charge 0.30% (a) $ 615.04 57 $34,827 5.16% 0.39% December 31, 2014 MRP*- contract charge 0.30% (a) $ 584.84 65 $37,929 12.60% 0.36% December 31, 2013 MRP*- contract charge 0.30% (a) $ 519.39 69 $35,727 32.93% 0.42% December 31, 2012 MRP*- contract charge 0.30% (a) $ 390.71 77 $30,232 15.60% 0.33% December 31, 2011 MRP*- contract charge 0.30% (a) $ 337.99 80 $27,159 3.34% 0.38% GROWTH STOCK ACCOUNT December 31, 2015 Institutional $17,164.79 3 $43,187 5.74% 0.08% December 31, 2014 Institutional $16,233.13 3 $48,535 12.95% 0.12% December 31, 2013 Institutional $14,372.16 3 $46,675 33.34% 0.12% December 31, 2012 Institutional $10,778.36 4 $40,660 15.95% 0.03% December 31, 2011 Institutional $ 9,295.69 4 $36,625 3.65% 0.08% SEPARATE ACCOUNT NO. 3 ALLIANCEBERNSTEIN MID CAP GROWTH FUND December 31, 2015 RIA*- contract charge 0.50% (a) $ 524.03 3 $ 1,324 1.14% 0.53% December 31, 2014 RIA*- contract charge 0.50% (a) $ 518.14 3 $ 1,771 2.12% 0.53% December 31, 2013 RIA*- contract charge 0.50% (a) $ 507.36 4 $ 1,901 33.41% 0.55% December 31, 2012 RIA*- contract charge 0.50% (a) $ 380.29 4 $ 1,662 13.33% 0.54% December 31, 2011 RIA*- contract charge 0.50% (a) $ 335.56 7 $ 2,278 2.63% 0.58% December 31, 2015 MRP*- contract charge 0.65% (a) $ 106.93 197 $21,078 0.97% 0.69% December 31, 2014 MRP*- contract charge 0.65% (a) $ 105.90 221 $23,410 1.96% 0.68% December 31, 2013 MRP*- contract charge 0.65% (a) $ 103.86 246 $25,600 33.22% 0.70% December 31, 2012 MRP*- contract charge 0.65% (a) $ 77.96 274 $21,387 13.17% 0.69% December 31, 2011 MRP*- contract charge 0.65% (a) $ 68.89 288 $19,852 2.48% 0.73%
FSA-82 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ---------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ---------- ----------- ------------ -------- -------- MID CAP GROWTH STOCK ACCOUNT December 31, 2015 Institutional $58,395.05 --(c) $806 1.65% 0.04% December 31, 2014 Institutional $57,449.35 --(c) $827 2.64% 0.05% December 31, 2013 Institutional $55,973.12 --(c) $778 34.08% 0.05% December 31, 2012 Institutional $41,745.15 --(c) $634 13.90% 0.04% December 31, 2011 Institutional $36,649.94 --(c) $550 3.14% 0.08%
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- SEPARATE ACCOUNT NO. 66+ ALL ASSET AGGRESSIVE-ALT 25 2015........ MRP*, 0.02% (a) $ 11.58 6 $ 75 1.64% (4.38)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.11 2 $ 22 1.99% 2.28% 0.02% 2013........ MRP*, 0.03% (a) $ 11.84 1 $ 9 2.89% 18.05% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.03 --(c) $ 2 -- 6.03% 0.01% ALL ASSET GROWTH-ALT 20 2015........ MRP*, 0.02% (a) $ 11.27 7 $ 75 0.62% (3.92)% 0.02% 2014........ MRP*, 0.02% (a) $ 11.73 8 $ 94 4.25% 2.36% 0.02% 2013........ MRP*, 0.03% (a) $ 11.46 --(c) $ 1 0.02% 14.03% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.05 6 $ 63 4.76% 5.13% 0.01% ALL ASSET MODERATE GROWTH-ALT 15 (B) 2015........ MRP*, 0.02% (a) $ 10.97 1 $ 7 1.06% (3.77)% 0.02% 2014........ MRP*, 0.02% (a) $ 11.40 --(c) $ 4 0.62% 2.43% 0.02% 2013........ MRP*, 0.03% (a) $ 11.13 --(c) $ 2 5.56% 11.08% 0.03% AXA AGGRESSIVE ALLOCATION 2015........ MRP*, 0.02% (a) $ 11.91 216 $2,569 0.98% (1.81)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.13 209 $2,535 1.61% 4.75% 0.02% 2013........ MRP*, 0.03% (a) $ 11.58 203 $2,355 2.62% 26.42% 0.03% 2012........ MRP*, 0.01% (a) $ 9.16 192 $1,757 0.80% 14.07% 0.01% 2011........ MRP*, 0.01% (a) $ 8.03 243 $1,947 1.37% (7.49)% 0.01% AXA CONSERVATIVE ALLOCATION 2015........ MRP*, 0.02% (a) $ 12.12 105 $1,273 0.77% (0.25)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.15 108 $1,307 0.77% 2.62% 0.02% 2013........ MRP*, 0.03% (a) $ 11.84 131 $1,546 0.91% 4.32% 0.03% 2012........ MRP*, 0.01% (a) $ 11.35 157 $1,778 0.77% 4.51% 0.01% 2011........ MRP*, 0.01% (a) $ 10.86 147 $1,595 2.19% 1.88% 0.01% AXA CONSERVATIVE-PLUS ALLOCATION 2015........ MRP*, 0.02% (a) $ 12.22 88 $1,077 0.88% (0.73)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.31 81 $ 998 0.94% 3.19% 0.02% 2013........ MRP*, 0.03% (a) $ 11.93 104 $1,238 1.32% 10.16% 0.03% 2012........ MRP*, 0.01% (a) $ 10.83 81 $ 876 0.95% 7.44% 0.01% 2011........ MRP*, 0.01% (a) $ 10.08 66 $ 665 1.44% (0.79)% 0.01% AXA GLOBAL EQUITY MANAGED VOLATILITY 2015........ RIA*, 0.00% (a) $510.99 --(c) $ 100 0.85% (1.73)% 0.00% MRP*, 0.02% (a) $ 14.36 105 $1,506 0.85% (1.71)% 0.02% 2014........ RIA*, 0.00% (a) $519.96 --(c) $ 112 0.94% 1.69% 0.00% MRP*, 0.02% (a) $ 14.61 119 $1,732 0.94% 1.67% 0.02% 2013........ RIA*, 0.00% (a) $511.33 --(c) $ 213 0.75% 20.36% 0.00% MRP*, 0.03% (a) $ 14.37 133 $1,913 0.75% 20.25% 0.03% 2012........ RIA*, 0.00% (a) $424.84 --(c) $ 210 1.45% 16.98% 0.00% MRP*, 0.01% (a) $ 11.95 161 $1,923 1.45% 17.04% 0.01% 2011........ RIA*, 0.00% (a) $363.17 1 $ 241 1.71% (12.31)% 0.00% MRP*, 0.01% (a) $ 10.21 158 $1,612 1.71% (12.36)% 0.01%
FSA-83 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- AXA INTERNATIONAL CORE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $140.77 --(c) $ 8 0.06% (4.34)% 0.00% MRP*, 0.02% (a) $ 12.65 146 $1,847 0.06% (4.31)% 0.02% 2014............ RIA*, 0.00% (a) $147.16 --(c) $ 8 1.23% (6.24)% 0.00% MRP*, 0.02% (a) $ 13.22 181 $2,390 1.23% (6.24)% 0.02% 2013............ RIA*, 0.00% (a) $156.95 1 $ 90 0.83% 17.52% 0.00% MRP*, 0.03% (a) $ 14.10 209 $2,949 0.83% 17.40% 0.03% 2012............ RIA*, 0.00% (a) $133.55 1 $ 93 1.47% 16.31% 0.00% MRP*, 0.01% (a) $ 12.01 230 $2,763 1.47% 16.38% 0.01% 2011............ RIA*, 0.00% (a) $114.82 1 $ 100 2.64% (16.93)% 0.00% MRP*, 0.01% (a) $ 10.32 239 $2,469 2.64% (16.98)% 0.01% AXA INTERNATIONAL VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $155.32 --(c) $ 51 0.10% (3.16)% 0.00% 2014............ RIA*, 0.00% (a) $160.39 --(c) $ 52 1.11% (7.18)% 0.00% 2013............ RIA*, 0.00% (a) $172.79 1 $ 140 1.44% 19.33% 0.00% 2012............ RIA*, 0.00% (a) $144.80 1 $ 80 1.83% 17.47% 0.00% 2011............ RIA*, 0.00% (a) $123.27 1 $ 76 2.18% (16.17)% 0.00% AXA LARGE CAP CORE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $172.57 --(c) $ -- 0.00% 0.37% 0.00% 2014............ RIA*, 0.00% (a) $171.93 1 $ 89 0.96% 11.62% 0.00% 2013............ RIA*, 0.00% (a) $154.03 1 $ 81 0.52% 31.56% 0.00% 2012............ RIA*, 0.00% (a) $117.08 1 $ 61 1.19% 14.99% 0.00% 2011............ RIA*, 0.00% (a) $101.82 --(c) $ 50 0.59% (4.24)% 0.00% AXA LARGE CAP GROWTH MANAGED VOLATILITY (D) 2015............ RIA*, 0.00% (a) $243.24 --(c) $ 30 0.27% 4.04% 0.00% MRP*, 0.02% (a) $ 10.14 325 $3,295 0.27% 4.00% 0.02% 2014............ RIA*, 0.00% (a) $233.80 --(c) $ 31 0.19% 11.08% 0.00% MRP*, 0.02% (a) $ 9.75 393 $3,829 0.19% 11.05% 0.02% 2013............ RIA*, 0.00% (a) $210.47 --(c) $ 31 0.16% 35.39% 0.00% MRP*, 0.03% (a) $ 8.78 456 $4,002 0.16% 35.29% 0.03% 2012............ RIA*, 0.00% (a) $155.46 --(c) $ 24 0.56% 13.74% 0.00% MRP*, 0.01% (a) $ 6.49 593 $3,845 0.56% 13.86% 0.01% 2011............ RIA*, 0.00% (a) $136.68 --(c) $ 28 0.40% (3.66)% 0.00% MRP*, 0.01% (a) $ 5.70 639 $3,642 0.40% (3.72)% 0.01% AXA LARGE CAP VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $185.40 4 $ 715 1.57% (4.01)% 0.00% MRP*, 0.02% (a) $ 17.21 472 $8,120 1.57% (4.07)% 0.02% 2014............ RIA*, 0.00% (a) $193.15 4 $ 836 1.33% 12.23% 0.00% MRP*, 0.02% (a) $ 17.94 523 $9,377 1.33% 12.20% 0.02% 2013............ RIA*, 0.00% (a) $172.10 7 $1,272 1.04% 32.47% 0.00% MRP*, 0.03% (a) $ 15.99 561 $8,974 1.04% 32.48% 0.03% 2012............ RIA*, 0.00% (a) $129.92 8 $1,047 1.64% 15.87% 0.00% MRP*, 0.01% (a) $ 12.07 615 $7,423 1.64% 15.83% 0.01% 2011............ RIA*, 0.00% (a) $112.13 8 $ 881 1.17% (4.81)% 0.00% MRP*, 0.01% (a) $ 10.42 605 $6,304 1.17% (5.10)% 0.01% AXA MID CAP VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $296.77 --(c) $ 133 0.73% (3.54)% 0.00% MRP*, 0.02% (a) $ 23.39 324 $7,567 0.73% (3.55)% 0.02% 2014............ RIA*, 0.00% (a) $307.66 --(c) $ 140 0.58% 10.87% 0.00% MRP*, 0.02% (a) $ 24.25 372 $9,018 0.58% 10.83% 0.02% 2013............ RIA*, 0.00% (a) $277.49 1 $ 224 0.51% 33.08% 0.00% MRP*, 0.03% (a) $ 21.88 395 $8,647 0.51% 33.09% 0.03% 2012............ RIA*, 0.00% (a) $208.52 1 $ 167 1.25% 18.63% 0.00% MRP*, 0.01% (a) $ 16.44 439 $7,214 1.25% 18.61% 0.01% 2011............ RIA*, 0.00% (a) $175.78 1 $ 182 0.85% (9.43)% 0.00% MRP*, 0.01% (a) $ 13.86 454 $6,286 0.85% (9.47)% 0.01%
FSA-84 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- AXA MODERATE ALLOCATION 2015..... MRP*, 0.02% (a) $ 11.98 1,583 $18,961 0.84% (0.91)% 0.02% 2014..... MRP*, 0.02% (a) $ 12.09 1,532 $18,515 1.12% 3.07% 0.02% 2013..... MRP*, 0.03% (a) $ 11.73 1,486 $17,439 1.69% 13.01% 0.03% 2012..... MRP*, 0.01% (a) $ 10.38 1,377 $14,285 0.85% 8.81% 0.01% 2011..... MRP*, 0.01% (a) $ 9.54 1,229 $11,720 1.62% (2.35)% 0.01% AXA MODERATE-PLUS ALLOCATION 2015..... MRP*, 0.02% (a) $ 12.04 129 $ 1,553 1.02% (1.31)% 0.02% 2014..... MRP*, 0.02% (a) $ 12.20 103 $ 1,255 1.45% 3.74% 0.02% 2013..... MRP*, 0.03% (a) $ 11.76 88 $ 1,030 2.15% 19.76% 0.03% 2012..... MRP*, 0.01% (a) $ 9.82 78 $ 765 0.86% 11.59% 0.01% 2011..... MRP*, 0.01% (a) $ 8.80 160 $ 1,405 1.38% (4.97)% 0.01% AXA/AB SMALL CAP GROWTH 2015..... RIA*, 0.05% (a) $357.31 1 $ 184 0.04% (2.96)% 0.05% MRP*, 0.02% (a) $ 13.94 27 $ 373 0.04% (2.92)% 0.02% 2014..... RIA*, 0.05% (a) $368.20 1 $ 274 0.06% 3.52% 0.05% MRP*, 0.02% (a) $ 14.36 26 $ 381 0.06% 3.53% 0.02% 2013..... RIA*, 0.05% (a) $355.67 1 $ 415 0.06% 38.10% 0.05% MRP*, 0.03% (a) $ 13.87 12 $ 170 0.06% 38.15% 0.03% 2012..... RIA*, 0.05% (a) $257.54 1 $ 316 0.20% 15.53% 0.05% MRP*, 0.01% (a)(b) $ 10.04 --(c) $ -- 0.20% 8.89% 0.01% 2011..... RIA*, 0.05% (a) $222.92 1 $ 311 -- (0.45)% 0.05% CHARTER/SM/ MULTI-SECTOR BOND 2015..... RIA*, 0.05% (a) $223.13 --(c) $ -- 1.74% (0.69)% 0.05% MRP*, 0.02% (a) $ 10.07 92 $ 929 1.74% (0.59)% 0.02% 2014..... RIA*, 0.05% (a) $224.68 --(c) $ 1 2.53% 2.34% 0.05% MRP*, 0.02% (a) $ 10.13 80 $ 815 2.53% 2.32% 0.02% 2013..... RIA*, 0.05% (a) $219.55 --(c) $ 2 2.90% (1.06)% 0.05% MRP*, 0.03% (a) $ 9.90 84 $ 829 2.90% (0.90)% 0.03% 2012..... RIA*, 0.05% (a) $221.90 --(c) $ 2 2.15% 5.28% 0.05% MRP*, 0.01% (a) $ 9.99 127 $ 1,265 2.15% 5.27% 0.01% 2011..... RIA*, 0.05% (a) $210.78 --(c) $ 4 4.59% 5.28% 0.05% MRP*, 0.01% (a) $ 9.49 115 $ 1,090 4.59% 5.09% 0.01% CHARTER/SM/ SMALL CAP VALUE 2015..... RIA*, 0.00% (a) $252.31 --(c) $ 59 0.40% (13.13)% 0.00% 2014..... RIA*, 0.00% (a) $290.46 --(c) $ 116 0.12% (5.11)% 0.00% 2013..... RIA*, 0.00% (a) $306.09 1 $ 209 0.56% 42.72% 0.00% 2012..... RIA*, 0.00% (a) $214.47 1 $ 147 0.56% 16.77% 0.00% 2011..... RIA*, 0.00% (a) $183.67 1 $ 138 0.10% (9.02)% 0.00% EQ/BLACKROCK BASIC VALUE EQUITY 2015..... RIA*, 0.00% (a) $332.63 --(c) $ 78 1.26% (6.15)% 0.00% 2014..... RIA*, 0.00% (a) $354.42 --(c) $ 91 1.08% 9.70% 0.00% 2013..... RIA*, 0.00% (a) $323.07 --(c) $ 87 2.43% 33.73% 0.00% 2012..... RIA*, 0.00% (a) $234.57 --(c) $ 27 0.89% 13.64% 0.00% 2011..... RIA*, 0.00% (a) $206.42 1 $ 112 1.42% (3.11)% 0.00% EQ/BOSTON ADVISORS EQUITY INCOME 2015..... MRP*, 0.02% (a) $ 14.04 24 $ 333 1.74% (1.75)% 0.02% 2014..... MRP*, 0.02% (a) $ 14.29 20 $ 292 1.78% 8.67% 0.02% 2013..... MRP*, 0.03% (a) $ 13.15 18 $ 237 1.90% 31.76% 0.03% 2012..... MRP*, 0.01% (a)(b) $ 9.98 8 $ 84 4.90% 6.74% 0.01%
FSA-85 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------ UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/CALVERT SOCIALLY RESPONSIBLE 2015...... RIA*, 0.00% (a) $159.88 --(c) $ -- 0.98% 0.48% 0.00% MRP*, 0.02% (a) $ 13.46 168 $ 2,257 0.98% 0.45% 0.02% 2014...... RIA*, 0.00% (a) $159.12 --(c) $ -- 0.77% 13.61% 0.00% MRP*, 0.02% (a) $ 13.40 204 $ 2,734 0.77% 13.56% 0.02% 2013...... RIA*, 0.00% (a) $140.06 --(c) -- 0.73% 34.34% 0.00% MRP*, 0.03% (a) $ 11.80 242 $ 2,859 0.73% 34.24% 0.03% 2012...... RIA*, 0.00% (a) $104.26 --(c) -- 1.03% 16.74% 0.00% MRP*, 0.01% (a) $ 8.79 275 $ 2,417 1.03% 16.73% 0.01% 2011...... RIA*, 0.00% (a) $ 89.31 --(c) -- 0.38% 0.27% 0.00% MRP*, 0.01% (a) $ 7.53 251 $ 1,889 0.38% 0.27% 0.01% EQ/CAPITAL GUARDIAN RESEARCH 2015...... RIA*, 0.00% (a) $241.50 --(c) $ 61 0.56% 1.91% 0.00% MRP*, 0.02% (a) $ 29.72 240 $ 7,120 0.56% 1.89% 0.02% 2014...... RIA*, 0.00% (a) $236.97 --(c) $ 63 0.71% 10.51% 0.00% MRP*, 0.02% (a) $ 29.17 259 $ 7,569 0.71% 10.49% 0.02% 2013...... RIA*, 0.00% (a) $214.43 --(c) $ 55 1.33% 31.77% 0.00% MRP*, 0.03% (a) $ 26.40 279 $ 7,370 1.33% 31.74% 0.03% 2012...... RIA*, 0.00% (a) $162.73 --(c) $ 39 0.92% 17.40% 0.00% MRP*, 0.01% (a) $ 20.04 329 $ 6,600 0.92% 17.40% 0.01% 2011...... RIA*, 0.00% (a) $138.61 --(c) $ 44 0.73% 4.01% 0.00% MRP*, 0.01% (a) $ 17.07 341 $ 5,826 0.73% 3.96% 0.01% EQ/EQUITY 500 INDEX 2015...... RIA*, 0.05% (a) $611.49 2 $ 933 1.53% 0.75% 0.05% MRP*, 0.02% (a) $ 15.21 1,470 $22,355 1.53% 0.80% 0.02% 2014...... RIA*, 0.05% (a) $606.95 1 $ 892 1.38% 12.92% 0.05% MRP*, 0.02% (a) $ 15.09 1,636 $24,692 1.38% 12.95% 0.02% 2013...... RIA*, 0.05% (a) $537.51 1 $ 756 1.47% 31.45% 0.05% MRP*, 0.03% (a) $ 13.36 1,700 $22,716 1.47% 31.50% 0.03% 2012...... RIA*, 0.05% (a) $408.92 2 $ 679 1.69% 15.18% 0.05% MRP*, 0.01% (a) $ 10.16 1,759 $17,876 1.69% 15.19% 0.01% 2011...... RIA*, 0.05% (a) $355.04 2 $ 881 1.47% 1.71% 0.05% MRP*, 0.01% (a) $ 8.82 1,828 $16,126 1.47% 1.50% 0.01% EQ/GAMCO MERGERS AND ACQUISITIONS 2015...... MRP*, 0.02% (a) $ 11.73 11 $ 129 -- 2.62% 0.02% 2014...... MRP*, 0.02% (a) $ 11.43 10 $ 115 -- 1.60% 0.02% 2013...... MRP*, 0.03% (a) $ 11.25 16 $ 179 0.95% 10.95% 0.03% 2012...... MRP*, 0.01% (a)(b) $ 10.14 --(c) $ -- -- 3.26% 0.01% EQ/GAMCO SMALL COMPANY VALUE 2015...... MRP*, 0.02% (a) $ 23.29 120 $ 2,785 0.53% (5.71)% 0.02% 2014...... MRP*, 0.02% (a) $ 24.70 124 $ 3,062 0.25% 3.05% 0.02% 2013...... MRP*, 0.03% (a) $ 23.97 148 $ 3,544 0.27% 39.04% 0.03% 2012...... MRP*, 0.01% (a) $ 17.24 182 $ 3,145 1.29% 17.84% 0.01% 2011...... MRP*, 0.01% (a) $ 14.63 181 $ 2,646 0.07% (3.50)% 0.01% EQ/INTERMEDIATE GOVERNMENT BOND 2015...... RIA*, 0.05% (a) $229.02 --(c) $ -- 0.62% 0.38% 0.05% MRP*, 0.02% (a) $ 12.28 320 $ 3,935 0.62% 0.41% 0.02% 2014...... RIA*, 0.05% (a) $228.15 --(c) $ -- 0.41% 1.48% 0.05% MRP*, 0.02% (a) $ 12.23 324 $ 3,958 0.41% 1.49% 0.02% 2013...... RIA*, 0.05% (a) $224.82 --(c) $ 5 0.20% (1.69)% 0.05% MRP*, 0.03% (a) $ 12.05 321 $ 3,867 0.20% (1.71)% 0.03% 2012...... RIA*, 0.05% (a) $228.69 --(c) $ 5 0.26% 0.93% 0.05% MRP*, 0.01% (a) $ 12.26 396 $ 4,856 0.26% 0.99% 0.01% 2011...... RIA*, 0.05% (a) $226.59 --(c) $ 18 0.48% 5.50% 0.05% MRP*, 0.01% (a) $ 12.14 349 $ 4,236 0.48% 5.29% 0.01%
FSA-86 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/INTERNATIONAL EQUITY INDEX 2015........ RIA*, 0.05% (a) $173.74 2 $ 427 2.30% (2.18)% 0.05% MRP*, 0.02% (a) $ 19.55 485 $ 9,472 2.30% (2.15)% 0.02% 2014........ RIA*, 0.05% (a) $177.62 3 $ 468 2.95% (6.95)% 0.05% MRP*, 0.02% (a) $ 19.98 515 $10,286 2.95% (6.90)% 0.02% 2013........ RIA*, 0.05% (a) $190.88 4 $ 698 2.22% 21.41% 0.05% MRP*, 0.03% (a) $ 21.46 563 $12,089 2.22% 21.45% 0.03% 2012........ RIA*, 0.05% (a) $157.22 4 $ 612 3.05% 16.21% 0.05% MRP*, 0.01% (a) $ 17.67 613 $10,826 3.05% 16.25% 0.01% 2011........ RIA*, 0.05% (a) $135.29 4 $ 541 2.99% (12.02)% 0.05% MRP*, 0.01% (a) $ 15.20 656 $ 9,977 2.99% (11.99)% 0.01% EQ/JPMORGAN VALUE OPPORTUNITIES 2015........ RIA*, 0.00% (a) $234.67 1 $ 153 0.86% (2.28)% 0.00% 2014........ RIA*, 0.00% (a) $240.15 --(c) $ 110 1.07% 14.37% 0.00% 2013........ RIA*, 0.00% (a) $209.97 --(c) $ 98 2.04% 35.79% 0.00% 2012........ RIA*, 0.00% (a) $154.63 --(c) $ 73 0.92% 16.05% 0.00% 2011........ RIA*, 0.00% (a) $133.25 1 $ 69 1.45% (5.23)% 0.00% EQ/LARGE CAP GROWTH INDEX 2015........ RIA*, 0.00% (a) $155.74 --(c) $ -- 1.17% 4.86% 0.00% MRP*, 0.02% (a) $ 15.15 34 $ 523 1.17% 4.84% 0.02% 2014........ RIA*, 0.00% (a) $148.52 --(c) $ -- 1.23% 12.24% 0.00% MRP*, 0.02% (a) $ 14.45 19 $ 282 1.23% 12.19% 0.02% 2013........ RIA*, 0.00% (a) $132.32 --(c) $ -- 4.42% 32.48% 0.00% MRP*, 0.03% (a) $ 12.88 9 $ 122 4.42% 32.51% 0.03% 2012........ RIA*, 0.00% (a) $ 99.88 --(c) $ -- 0.51% 14.73% 0.00% MRP*, 0.01% (a)(b) $ 9.72 --(c) $ -- 0.51% 5.19% 0.01% 2011........ RIA*, 0.00% (a) $ 87.06 --(c) $ 3 0.88% 2.36% 0.00% EQ/MFS INTERNATIONAL GROWTH 2015........ MRP*, 0.02% (a) $ 11.25 34 $ 378 0.55% 0.18% 0.02% 2014........ MRP*, 0.02% (a) $ 11.23 40 $ 450 1.01% (5.07)% 0.02% 2013........ MRP*, 0.03% (a) $ 11.83 32 $ 375 1.87% 13.64% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.41 3 $ 29 1.75% 7.99% 0.01% EQ/MID CAP INDEX 2015........ RIA*, 0.00% (a) $211.01 --(c) $ 90 1.04% (2.86)% 0.00% MRP*, 0.02% (a) $ 14.40 39 $ 558 1.04% (2.90)% 0.02% 2014........ RIA*, 0.00% (a) $217.22 --(c) $ 38 0.93% 8.99% 0.00% MRP*, 0.02% (a) $ 14.83 30 $ 451 0.93% 8.96% 0.02% 2013........ RIA*, 0.00% (a) $199.30 --(c) $ 32 0.95% 32.58% 0.00% MRP*, 0.03% (a) $ 13.61 13 $ 183 0.95% (32.52)% 0.03% 2012........ RIA*, 0.00% (a) $150.33 --(c) $ 22 1.86% 17.80% 0.00% MRP*, 0.01% (a)(b) $ 16.44 2 $ 24 1.86% 8.11% 0.01% 2011........ RIA*, 0.00% (a) $128.40 --(c) $ 25 0.59% (2.41)% 0.00% EQ/MONEY MARKET 2015........ RIA*, 0.05% (a) $174.88 --(c) $ -- -- (0.05)% 0.05% MRP*, 0.02% (a) $ 9.99 1,383 $13,819 -- 0.00% 0.02% 2014........ RIA*, 0.05% (a) $174.97 --(c) $ 11 -- (0.05)% 0.05% MRP*, 0.02% (a) $ 9.99 1395 $13,939 -- (0.10)% 0.02% 2013........ RIA*, 0.05% (a) $175.05 --(c) $ 31 -- (0.05)% 0.05% MRP*, 0.03% (a) $ 10.00 1,416 $14,149 -- 0.00% 0.03% 2012........ RIA*, 0.05% (a) $175.14 --(c) $ 31 -- (0.05)% 0.05% MRP*, 0.01% (a) $ 10.00 1,584 $15,837 -- 0.00% 0.01% 2011........ RIA*, 0.05% (a) $175.23 --(c) $ 38 0.01% (0.05)% 0.05% MRP*, 0.01% (a) $ 10.00 1447 $14,470 0.01% 0.00% 0.01% EQ/MORGAN STANLEY MID CAP GROWTH (B) 2015........ MRP*, 0.02% (a) $ 13.16 10 $ 133 -- (5.46)% 0.02% 2014........ MRP*, 0.02% (a) $ 13.92 11 $ 150 -- (0.78)% 0.02% 2013........ MRP*, 0.03% (a) $ 14.03 2 $ 33 -- 38.50% 0.03%
FSA-87 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------ UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/PIMCO ULTRA SHORT BOND 2015.... MRP*, 0.02% (a) $ 11.77 177 $2,079 0.46% (0.25)% 0.02% 2014.... MRP*, 0.02% (a) $ 11.80 209 $2,469 0.35% (0.17)% 0.02% 2013.... MRP*, 0.03% (a) $ 11.82 233 $2,753 0.79% 0.08% 0.03% 2012.... MRP*, 0.01% (a) $ 11.81 207 $2,447 0.56% 1.46% 0.01% 2011.... MRP*, 0.01% (a) $ 11.64 189 $2,203 0.51% (0.17)% 0.01% EQ/QUALITY BOND PLUS 2015.... RIA*, 0.05% (a) $247.26 --(c) $ 7 0.94% 0.17% 0.05% 2014.... RIA*, 0.05% (a) $246.83 --(c) $ 9 0.60% 2.85% 0.05% 2013.... RIA*, 0.05% (a) $239.98 --(c) $ 46 0.37% (2.33)% 0.05% 2012.... RIA*, 0.05% (a) $245.70 --(c) $ 46 0.43% 2.61% 0.05% 2011.... RIA*, 0.05% (a) $239.46 --(c) $ 72 2.09% 1.41% 0.05% EQ/SMALL COMPANY INDEX 2015.... MRP*, 0.02% (a) $ 23.87 184 $4,399 0.84% (4.60)% 0.02% 2014.... MRP*, 0.02% (a) $ 25.02 212 $5,293 0.73% 4.86% 0.02% 2013.... MRP*, 0.03% (a) $ 23.86 246 $5,871 0.96% 37.36% 0.03% 2012.... MRP*, 0.01% (a) $ 17.37 256 $4,452 1.54% 15.57% 0.01% 2011.... MRP*, 0.01% (a) $ 15.03 255 $3,828 0.66% (4.02)% 0.01% EQ/T. ROWE PRICE GROWTH STOCK 2015.... RIA*, 0.00% (a) $ 18.56 --(c) $ -- -- 10.21% 0.00% MRP*, 0.02% (a) $ 16.11 26 $ 421 -- 10.27% 0.02% 2014.... RIA*, 0.00% (a) $ 16.84 --(c) $ 2 -- 8.65% 0.00% MRP*, 0.02% (a) $ 14.61 28 $ 413 -- 8.54% 0.02% 2013.... RIA*, 0.00% (a) $ 15.50 --(c) $ 2 -- 37.90% 0.00% MRP*, 0.03% (a) $ 13.46 12 $ 166 -- 37.91% 0.03% 2012.... RIA*, 0.00% (a) $ 11.24 --(c) $ 1 -- 18.94% 0.00% MRP*, 0.01% (a)(b) $ 9.76 2 $ 21 -- 6.43% 0.01% 2011.... RIA*, 0.00% (a) $ 9.45 3 $ 29 -- (1.97)% 0.00% EQ/WELLS FARGO OMEGA GROWTH 2015.... RIA*, 0.00% (a) $210.69 1 $ 240 -- 1.27% 0.00% MRP*, 0.02% (a) $ 14.39 15 $ 216 -- 1.20% 0.02% 2014.... RIA*, 0.00% (a) $208.05 1 $ 194 -- 3.80% 0.00% MRP*, 0.02% (a) $ 14.22 16 $ 224 -- 3.80% 0.02% 2013.... RIA*, 0.00% (a) $200.43 2 $ 375 -- 39.07% 0.00% MRP*, 0.03% (a) $ 13.70 19 $ 255 -- 39.09% 0.03% 2012.... RIA*, 0.00% (a) $144.12 2 $ 236 0.01% 20.43% 0.00% MRP*, 0.01% (a)(b) $ 9.85 4 $ 39 0.01% 7.42% 0.01% 2011.... RIA*, 0.00% (a) $119.67 2 $ 277 -- (5.87)% 0.00% MULTIMANAGER CORE BOND 2015.... MRP*, 0.02% (a) $ 10.16 160 $1,629 2.06% 0.10% 0.02% 2014.... MRP*, 0.02% (a) $ 10.15 104 $1,058 2.15% 3.68% 0.02% 2013.... MRP*, 0.03% (a) $ 9.79 80 $ 778 1.60% (2.39)% 0.03% 2012.... MRP*, 0.01% (a)(b) $ 10.03 50 $ 503 0.72% 0.00% 0.01% MULTIMANAGER TECHNOLOGY 2015.... RIA*, 0.00% (a) $269.46 --(c) $ -- -- 6.29% 0.00% MRP*, 0.02% (a) $ 25.55 179 $4,563 -- 6.24% 0.02% 2014.... RIA*, 0.00% (a) $253.51 --(c) $ 103 -- 13.55% 0.00% MRP*, 0.02% (a) $ 24.05 195 $4,694 -- 13.55% 0.02% 2013.... RIA*, 0.00% (a) $223.26 --(c) $ 92 -- 35.59% 0.00% MRP*, 0.03% (a) $ 21.18 182 $3,856 -- 35.51% 0.03% 2012.... RIA*, 0.00% (a) $164.66 1 $ 124 -- 13.43% 0.00% MRP*, 0.01% (a) $ 15.63 219 $3,419 -- 13.43% 0.01% 2011.... RIA*, 0.00% (a) $145.17 1 $ 159 -- (4.81)% 0.00% MRP*, 0.01% (a) $ 13.78 214 $2,945 -- (4.83)% 0.01%
FSA-88 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Concluded)
YEARS ENDED DECEMBER 31, ----------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------ ----------- ------------ ---------- -------- -------- TARGET 2015 ALLOCATION 2015. MRP*, 0.02% (a) $11.54 179 $2,063 1.02% (1.95)% 0.02% 2014. MRP*, 0.02% (a) $11.77 215 $2,529 1.24% 2.97% 0.02% 2013. MRP*, 0.03% (a) $11.43 204 $2,328 1.40% 14.07% 0.03% 2012. MRP*, 0.01% (a) $10.02 183 $1,830 1.40% 10.84% 0.01% 2011. MRP*, 0.01% (a) $ 9.04 178 $1,609 1.44% (2.80)% 0.01% TARGET 2025 ALLOCATION 2015. MRP*, 0.02% (a) $11.82 218 $2,578 1.28% (2.07)% 0.02% 2014. MRP*, 0.02% (a) $12.07 217 $2,618 1.06% 4.05% 0.02% 2013. MRP*, 0.03% (a) $11.60 213 $2,476 1.28% 18.97% 0.03% 2012. MRP*, 0.01% (a) $ 9.75 206 $2,007 1.27% 12.85% 0.01% 2011. MRP*, 0.01% (a) $ 8.64 230 $1,988 1.28% (3.89)% 0.01% TARGET 2035 ALLOCATION 2015. MRP*, 0.02% (a) $11.95 138 $1,646 1.28% (2.05)% 0.02% 2014. MRP*, 0.02% (a) $12.20 136 $1,654 1.36% 4.45% 0.02% 2013. MRP*, 0.03% (a) $11.68 116 $1,357 1.45% 22.30% 0.03% 2012. MRP*, 0.01% (a) $ 9.55 90 $ 858 1.61% 14.10% 0.01% 2011. MRP*, 0.01% (a) $ 8.37 57 $ 478 1.46% (4.67)% 0.01% TARGET 2045 ALLOCATION 2015. MRP*, 0.02% (a) $11.87 112 $1,333 1.36% (2.22)% 0.02% 2014. MRP*, 0.02% (a) $12.14 102 $1,237 1.40% 4.75% 0.02% 2013. MRP*, 0.03% (a) $11.59 92 $1,062 1.59% 25.16% 0.03% 2012. MRP*, 0.01% (a) $ 9.26 60 $ 553 1.63% 15.46% 0.01% 2011. MRP*, 0.01% (a) $ 8.02 47 $ 373 1.45% (5.54)% 0.01% TARGET 2055 ALLOCATION 2015. MRP*, 0.02% (a)(e) $ 9.22 4 $ 33 2.18% (6.77)% 0.02%
---------- (a)Contract charge as described in footnote 7 included in these financial statements. (b)Units were made available on November 15, 2012. For investments with no units outstanding as of December 31, 2012, no 2012 activity is presented. (c)Amount rounds to less than 500 units. (d)AXA Large Cap Growth Managed Volatility replaced EQ/Equity Growth PLUS due to a fund merger on June 20, 2014. (e)Units were made available on May 26, 2015. * For Separate Account No. 66, expenses as a percentage of Average Net Assets (at the rates indicated) for each period presented. Charges made directly to contract owner account through the redemption of units and expenses of the underlying fund have been excluded. 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 that 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. ***For Separate Accounts No. 3, 4, and 10, expenses as a percentage of average net assets (at the rates indicated) consisting of mortality and expense charges and other expenses for each period presented. The ratios included only those expenses that result in a direct reduction to unit values. (+)Rates charged for the year ended December 31, 2015 are reflected under "Contract Charges" shown for each unit value class in the Statement of Assets and Liabilities. # This ratio represents the amount of dividend income, excluding distribution from net realized gains, received by the Variable Investment Options 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 Options invest. 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. FSA-89 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONCLUDED) DECEMBER 31, 2015 11.Subsequent Events All material subsequent transactions and events have been evaluated for the period from December 31, 2015 through 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-90 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, December 31, 2015 and 2014....................................... F-2 Consolidated Statements of Earnings (Loss), Years Ended December 31, 2015, 2014 and 2013...... F-3 Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2015, 2014 and 2013..................................................................................... F-4 Consolidated Statements of Equity, Years Ended December 31, 2015, 2014 and 2013............... F-5 Consolidated Statements of Cash Flows, Years Ended December 31, 2015, 2014 and 2013........... F-6 Notes to Consolidated Financial Statements Note 1 -- Organization....................................................................... F-8 Note 2 -- Significant Accounting Policies.................................................... F-8 Note 3 -- Investments........................................................................ F-21 Note 4 -- Goodwill and Other Intangible Assets............................................... F-38 Note 5 -- Closed Block....................................................................... F-39 Note 6 -- Contractholder Bonus Interest Credits.............................................. F-40 Note 7 -- Fair Value Disclosures............................................................. F-41 Note 8 -- GMDB, GMIB, GIB, GWBL and Other Features and No Lapse Guarantee Features........... F-52 Note 9 -- Reinsurance Agreements............................................................. F-56 Note 10 -- Short-Term and Long-Term Debt..................................................... F-57 Note 11 -- Related Party Transactions........................................................ F-58 Note 12 -- Employee Benefit Plans............................................................ F-60 Note 13 -- Share-Based and Other Compensation Programs....................................... F-64 Note 14 -- Income Taxes...................................................................... F-70 Note 15 -- Accumulated Other Comprehensive Income (Loss)..................................... F-72 Note 16 -- Commitments and Contingent Liabilities............................................ F-73 Note 17 -- Litigation........................................................................ F-74 Note 18 -- Insurance Group Statutory Financial Information................................... F-76 Note 19 -- Business Segment Information...................................................... F-77 Note 20 -- Quarterly Results of Operations (Unaudited)....................................... F-77
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of AXA Equitable Life Insurance Company: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of earnings (loss), of comprehensive income (loss), of equity and of cash flows present fairly, in all material respects, the financial position of AXA Equitable Life Insurance Company and its subsidiaries (the "Company") at December 31, 2015 and December 31, 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP New York, New York March 18, 2016 F-1 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2015 AND 2014
2015 2014 ---------- ---------- (IN MILLIONS) ASSETS Investments: Fixed maturities available for sale, at fair value (amortized cost of $31,201 and 30,795)... $ 31,893 $ 33,034 Mortgage loans on real estate (net of valuation allowances of $6 and $37)...................... 7,171 6,463 Policy loans.................................... 3,393 3,408 Other equity investments........................ 1,477 1,757 Trading securities, at fair value............... 6,805 5,143 Other invested assets........................... 1,788 1,978 ---------- ---------- Total investments.............................. 52,527 51,783 Cash and cash equivalents......................... 3,028 2,716 Cash and securities segregated, at fair value..... 565 476 Broker-dealer related receivables................. 1,971 1,899 Securities purchased under agreements to resell... 79 -- Deferred policy acquisition costs................. 4,469 4,271 Goodwill and other intangible assets, net......... 3,733 3,762 Amounts due from reinsurers....................... 4,466 4,051 Loans to affiliates............................... 1,087 1,087 Guaranteed minimum income benefit reinsurance asset, at fair value............................ 10,570 10,711 Other assets...................................... 4,634 4,190 Separate Accounts' assets......................... 107,497 111,059 ---------- ---------- TOTAL ASSETS...................................... $ 194,626 $ 196,005 ========== ========== LIABILITIES Policyholders' account balances................... $ 33,033 $ 31,848 Future policy benefits and other policyholders liabilities..................................... 24,531 23,484 Broker-dealer related payables.................... 404 551 Securities sold under agreements to repurchase.... 1,890 950 Customers related payables........................ 1,715 1,501 Amounts due to reinsurers......................... 131 74 Short-term debt................................... 584 689 Current and deferred income taxes................. 4,647 4,785 Other liabilities................................. 2,586 2,939 Separate Accounts' liabilities.................... 107,497 111,059 ---------- ---------- Total liabilities.............................. 177,018 177,880 ---------- ---------- Redeemable Noncontrolling Interest................ $ 13 $ 17 ---------- ---------- EQUITY AXA Equitable's equity: Common stock, $1.25 par value, 2 million shares authorized, issued and outstanding............. $ 2 $ 2 Capital in excess of par value.................. 5,321 5,957 Retained earnings............................... 8,958 8,809 Accumulated other comprehensive income (loss)... 228 351 ---------- ---------- Total AXA Equitable's equity................... 14,509 15,119 ---------- ---------- Noncontrolling interest........................... 3,086 2,989 ---------- ---------- Total equity................................... 17,595 18,108 ---------- ---------- TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY............................. $ 194,626 $ 196,005 ========== ==========
See Notes to Consolidated Financial Statements. F-2 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 -------- -------- -------- (IN MILLIONS) REVENUES Universal life and investment-type product policy fee income................................................ $ 3,574 $ 3,475 $ 3,546 Premiums................................................ 488 514 496 Net investment income (loss): Investment income (loss) from derivative instruments.. (81) 1,605 (2,866) Other investment income (loss)........................ 2,057 2,210 2,237 -------- -------- -------- Total net investment income (loss)................... 1,976 3,815 (629) -------- -------- -------- Investment gains (losses), net: Total other-than-temporary impairment losses.......... (41) (72) (81) Portion of loss recognized in other comprehensive income (loss)........................................ -- -- 15 -------- -------- -------- Net impairment losses recognized..................... (41) (72) (66) Other investment gains (losses), net.................. 21 14 (33) -------- -------- -------- Total investment gains (losses), net............... (20) (58) (99) -------- -------- -------- Commissions, fees and other income...................... 3,942 3,930 3,823 Increase (decrease) in the fair value of the reinsurance contract asset............................ (141) 3,964 (4,297) -------- -------- -------- Total revenues..................................... 9,819 15,640 2,840 -------- -------- -------- BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits................................. 2,799 3,708 1,691 Interest credited to policyholders' account balances.... 978 1,186 1,373 Compensation and benefits............................... 1,783 1,739 1,743 Commissions............................................. 1,111 1,147 1,160 Distribution related payments........................... 394 413 423 Amortization of deferred sales commissions.............. 49 42 41 Interest expense........................................ 20 53 88 Amortization of deferred policy acquisition costs....... 284 215 580 Capitalization of deferred policy acquisition costs..... (615) (628) (655) Rent expense............................................ 165 163 169 Amortization of other intangible assets................. 28 27 24 Other operating costs and expenses...................... 1,173 1,460 1,512 -------- -------- -------- Total benefits and other deductions................ 8,169 9,525 8,149 -------- -------- -------- Earnings (loss) from operations, before income taxes.... 1,650 6,115 $ (5,309) Income tax (expense) benefit............................ (186) (1,695) 2,073 -------- -------- -------- Net earnings (loss)..................................... 1,464 4,420 (3,236) Less: net (earnings) loss attributable to the noncontrolling interest.............................. (403) (387) (337) -------- -------- -------- Net Earnings (Loss) Attributable to AXA Equitable....... $ 1,061 $ 4,033 $ (3,573) ======== ======== ========
See Notes to Consolidated Financial Statements. F-3 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) COMPREHENSIVE INCOME (LOSS) Net earnings (loss)............................... $ 1,464 $ 4,420 $ (3,236) --------- --------- --------- Other comprehensive income (loss) net of income taxes: Foreign currency translation adjustment........ (25) (21) (12) Change in unrealized gains (losses), net of reclassification adjustment.................. (881) 969 (1,199) Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment........... (4) (23) 299 --------- --------- --------- Total other comprehensive income (loss), net of income taxes.................................... (910) 925 (912) --------- --------- --------- Comprehensive income (loss)....................... 554 5,345 (4,148) Less: Comprehensive (income) loss attributable to noncontrolling interest..................... (388) (358) (345) --------- --------- --------- Comprehensive Income (Loss) Attributable to AXA Equitable....................................... $ 166 $ 4,987 $ (4,493) ========= ========= =========
See Notes to Consolidated Financial Statements. F-4 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF EQUITY YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) EQUITY AXA Equitable's Equity: Common stock, at par value, beginning and end of year........................................ $ 2 $ 2 $ 2 --------- --------- --------- Capital in excess of par value, beginning of year........................................... 5,957 5,934 5,992 Deferred tax on dividend of AB Units............ (35) (26) -- Non cash capital contribution from AXA Financial (See Note 12)........................ 137 -- -- Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 15).................... (772) -- -- Changes in capital in excess of par value....... 34 49 (58) --------- --------- --------- Capital in excess of par value, end of year..... 5,321 5,957 5,934 --------- --------- --------- Retained earnings, beginning of year............ 8,809 5,205 9,125 Net earnings (loss)............................. 1,061 4,033 (3,573) Stockholder dividends........................... (912) (429) (347) --------- --------- --------- Retained earnings, end of year.................. 8,958 8,809 5,205 --------- --------- --------- Accumulated other comprehensive income (loss), beginning of year.............................. 351 (603) 317 Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 15).................... 772 -- -- Other comprehensive income (loss)............... (895) 954 (920) --------- --------- --------- Accumulated other comprehensive income (loss), end of year.................................... 228 351 (603) --------- --------- --------- TOTAL AXA EQUITABLE'S EQUITY, END OF YEAR...... 14,509 15,119 10,538 --------- --------- --------- Noncontrolling interest, beginning of year...... 2,989 2,903 2,494 Repurchase of AB Holding units.................. (154) (62) (76) Net earnings (loss) attributable to noncontrolling interest........................ 403 387 337 Dividends paid to noncontrolling interest....... (414) (401) (306) Dividend of AB Units by AXA Equitable to AXA Financial...................................... 145 48 113 Other comprehensive income (loss) attributable to noncontrolling interest..................... (15) (29) 8 Other changes in noncontrolling interest........ 132 143 333 --------- --------- --------- Noncontrolling interest, end of year......... 3,086 2,989 2,903 --------- --------- --------- TOTAL EQUITY, END OF YEAR......................... $ 17,595 $ 18,108 $ 13,441 ========= ========= =========
See Notes to Consolidated Financial Statements. F-5 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) Net earnings (loss)..................................... $ 1,464 $ 4,420 $ (3,236) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Interest credited to policyholders' account balances........................................... 978 1,186 1,373 Universal life and investment-type product policy fee income......................................... (3,574) (3,475) (3,546) Net change in broker-dealer and customer related receivables/payables............................... (38) (525) (740) (Income) loss related to derivative instruments...... 81 (1,605) 2,866 Change in reinsurance recoverable with affiliate..... (581) (128) (176) Investment (gains) losses, net....................... 20 58 99 Change in segregated cash and securities, net........ (89) 505 571 Change in deferred policy acquisition costs.......... (331) (413) (74) Change in future policy benefits..................... 961 1,647 (384) Change in current and deferred income taxes.......... 258 1,448 (1,754) Real estate related write-off charges................ -- 25 56 Change in accounts payable and accrued expenses...... 38 (259) 33 Change in the fair value of the reinsurance contract asset..................................... 141 (3,964) 4,297 Contribution to pension plans........................ -- (6) -- Amortization of deferred compensation................ 172 171 159 Amortization of deferred sales commission............ 49 42 41 Amortization of reinsurance cost..................... 39 302 302 Other depreciation and amortization.................. (18) 44 122 Amortization of other intangibles.................... 28 27 24 Other, net........................................... 116 (117) 128 --------- --------- --------- Net cash provided by (used in) operating activities... (286) (617) 161 --------- --------- --------- Cash flows from investing activities: Maturities and repayments of fixed maturities and mortgage loans on real estate...................... 3,996 2,975 3,691 Sales of investments................................. 1,284 1,099 3,444 Purchases of investments............................. (6,145) (6,751) (6,057) Purchases of trading account securities.............. (12,501) (7,014) (3,794) Sales maturities and repayment of trading account securities......................................... 10,810 6,077 1,893 Cash settlements related to derivative instruments... 529 999 (2,500) Purchase of business, net of cash acquired........... -- (61) -- Change in short-term investments..................... (363) (5) -- Decrease in loans to affiliates...................... -- -- 5 Increase in loans to affiliates...................... -- -- (56) Investment in capitalized software, leasehold improvements and EDP equipment..................... (71) (83) (67) Other, net........................................... 35 (9) 12 --------- --------- --------- Net cash provided by (used in) investing activities... $ (2,426) $ (2,773) $ (3,429) --------- --------- ---------
See Notes to Consolidated Financial Statements. F-6 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 (CONTINUED)
2015 2014 2013 -------- --------- --------- (IN MILLIONS) Cash flows from financing activities: Policyholders' account balances: Deposits........................................ $ 4,821 $ 5,034 $ 5,469 Withdrawals and transfers to Separate Accounts.. (880) (1,075) (1,188) Change in short-term financings.................. 95 221 (55) Change in collateralized pledged liabilities..... (270) 430 (663) Change in collateralized pledged assets.......... (2) (12) (18) Repayment of Loans from Affiliates............... -- (825) (500) Repayment of long term debt...................... (200) -- -- Shareholder dividends paid....................... (767) (382) (234) Repurchase of AB Holding units................... (214) (90) (113) Distribution to noncontrolling interest in consolidated subsidiaries....................... (414) (401) (306) Increase (decrease) in Securities sold under agreement to repurchase......................... 939 950 -- Change in securities sold under agreements to resale.......................................... (79) -- -- Other, net....................................... 5 (7) -- -------- --------- --------- Net cash provided by (used in) financing activities....................................... 3,034 3,843 2,392 -------- --------- --------- Effect of exchange rate changes on cash and cash equivalents...................................... (10) (20) (3) Change in cash and cash equivalents................ 312 433 (879) Cash and cash equivalents, beginning of year....... 2,716 2,283 3,162 -------- --------- --------- Cash and Cash Equivalents, End of Year............. $ 3,028 $ 2,716 $ 2,283 ======== ========= ========= Supplemental cash flow information: Interest Paid.................................... $ 19 $ 72 $ 91 ======== ========= ========= Income Taxes (Refunded) Paid..................... $ (80) $ 272 $ (214) ======== ========= =========
See Notes to Consolidated Financial Statements. F-7 AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1) ORGANIZATION AXA Equitable Life Insurance Company ("AXA Equitable," and collectively with its consolidated subsidiaries the "Company") is a direct, wholly-owned subsidiary of AXA Equitable Financial Services, LLC ("AEFS"). AEFS is a direct, wholly-owned subsidiary of AXA Financial, Inc. ("AXA Financial," and collectively with its consolidated subsidiaries, "AXA Financial Group"). AXA Financial is an indirect wholly-owned subsidiary of AXA S.A. ("AXA"), a French holding company for the AXA Group, a worldwide leader in financial protection. The Company conducts operations in two business segments: the Insurance and Investment Management segments. The Company's management evaluates the performance of each of these segments independently. Insurance The Insurance segment offers a variety of term, variable and universal life insurance products, variable and fixed-interest annuity products and investment products including mutual funds principally to individuals and small and medium size businesses and professional and trade associations. This segment also includes Separate Accounts for individual insurance and annuity products. The Company's insurance business is conducted principally by AXA Equitable and its indirect, wholly-owned insurance subsidiaries and AXA Equitable Funds Management Group ("AXA Equitable FMG"). Investment Management The Investment Management segment is principally comprised of the investment management business of AllianceBernstein L.P., a Delaware limited partnership (together with its consolidated subsidiaries "AB"). AB provides research, diversified investment management and related services globally to a broad range of clients. This segment also includes institutional Separate Accounts principally managed by AB that provide various investment options for large group pension clients, primarily defined benefit and contribution plans, through pooled or single group accounts. AB is a private partnership for Federal income tax purposes and, accordingly, is not subject to Federal and state corporate income taxes. However, AB is subject to a 4.0% New York City unincorporated business tax ("UBT"). Domestic corporate subsidiaries of AB are subject to Federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located. The Company provides Federal and state income taxes on the undistributed earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are permanently invested outside the United States. At December 31, 2015 and 2014, the Company's economic interest in AB was 28.6% and 32.2%, respectively. At December 31, 2015 and 2014, respectively, AXA and its subsidiaries' economic interest in AB (including AXA Financial Group) was approximately 62.8% and 62.7%. AXA Equitable is the parent of AllianceBernstein Corporation, the general partner ("General Partner") of the limited partnership, as a result it consolidates AB in the Company's consolidated financial statements. 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 reflect all adjustments necessary in the opinion of management for a fair presentation of the consolidated financial position of the Company and its consolidated results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of AXA Equitable and its subsidiaries engaged in insurance related businesses (collectively, the "Insurance Group"); other subsidiaries, principally AB; and those investment companies, partnerships and joint ventures in which AXA Equitable or its subsidiaries has control and a majority economic interest as well as those variable interest entities ("VIEs") that meet the requirements for consolidation. F-8 All significant intercompany transactions and balances have been eliminated in consolidation. The years "2015", "2014" and "2013" refer to the years ended December 31, 2015, 2014 and 2013, respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. Accounting and Consolidation of VIE's For all new investment products and entities developed by the Company (other than Collateralized Debt Obligations ("CDOs")), the Company first determines whether the entity is a VIE, which involves determining an entity's variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then identifies the primary beneficiary of the VIE. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. The Company provides seed capital to its investment teams to develop new products and services for their clients. The Company's original seed investment typically represents all or a majority of the equity investment in the new product is temporary in nature. The Company evaluates its seed investments on a quarterly basis and consolidates such investments as required pursuant to U.S. GAAP. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client assets under management ("AUM") to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. AB earned investment management fees on client AUM of these entities but derived no other benefit from those assets and cannot utilize those assets in its operations. At December 31, 2015, AB had significant variable interests in certain other structured products and hedge funds with approximately $28 million in client AUM. However, these VIEs do not require consolidation because management has determined that AB is not the primary beneficiary of the expected losses or expected residual returns of these entities. AB's maximum exposure to loss in these entities is limited to its investments of $200,000 in and prospective investment management fees earned from these entities. Adoption of New Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued new guidance for repurchase-to-maturity transactions, repurchase financings and added disclosure requirements, which aligns the accounting for repurchase-to-maturity transactions and repurchase financing arrangements with the accounting for other typical repurchase agreements. The new guidance also requires additional disclosures about repurchase agreements and similar transactions. The accounting changes and disclosure requirements were effective for interim or annual periods beginning after December 15, 2014. Implementation of this guidance did not have a material impact on the Company's consolidated financial statements. The FASB issued new guidance that allows investors to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under this method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. The guidance was effective for annual periods beginning after December 15, 2014. Implementation of this guidance did not have a material impact on the Company's consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2016, the FASB issued revised guidance to lease accounting. The revised guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases. Lessor accounting will continue to be similar to the current model, but updated to align with certain changes to the lessee model. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The revised guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. In January 2016, the FASB issued new guidance related to recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment F-9 when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. New guidance is effective prospectively for fiscal years (and interim periods within those years) beginning after December 15, 2017. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. In May 2015, the FASB issued new guidance related to disclosures for investments in certain entities that calculate net asset value ("NAV") per share (or its equivalent). Under the new guidance, investments measured at NAV, as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. The only criterion for categorizing investments in the fair value hierarchy will be the observability of the inputs. The amendment is effective retrospectively for fiscal years (and interim periods within those years) beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In April 2015, the FASB issued new guidance, simplifying the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance is effective retrospectively for interim or annual periods beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to limited partnerships and similar entities, and ends the deferral granted to investment companies for applying the VIE guidance. The new standard is effective for annual periods, beginning after December 15, 2015, but may be early-adopted in any interim period. Management currently is evaluating the impacts this guidance may have on the Company's consolidated financial statements. In August 2014, the FASB issued new guidance which requires management to evaluate whether there is "substantial doubt" about the reporting entity's ability to continue as a going concern and provide related footnote disclosures about those uncertainties, if they exist. The new guidance is effective for annual periods, ending after December 15, 2016 and interim periods thereafter. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In June 2014, the FASB issued new guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance is effective for interim and annual periods beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards ("IFRS"). The new guidance applies to contracts that deliver goods or services to a customer, except when those contracts are for: insurance, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new guidance is effective for interim and annual periods, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. Closed Block As a result of demutualization, the 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 AXA Equitable. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of AXA Equitable's General Account, any of its Separate Accounts or any affiliate of AXA Equitable 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. 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 F-10 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. 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 OCI. 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 and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. 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 earnings (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 prior to impairment. 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. Policy loans are stated at unpaid principal balances. Partnerships, investment companies and joint venture interests that the Company has control of and has a majority 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 basis of accounting and are reported either with equity real estate or other equity investments, as appropriate. The Company records its interests in certain of these partnerships on a month or one quarter lag. Equity securities, which include common stock, and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in other equity investments with changes in fair value reported in OCI. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with unrealized gains (losses) reported in other investment income (loss) in the statements of Net earnings (loss). F-11 Corporate owned life insurance ("COLI") has been purchased by AXA Equitable and certain subsidiaries on the lives of certain key employees and AXA Equitable and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2015 and 2014, the carrying value of COLI was $864 million and $803 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. 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. All securities owned, including United States government and agency securities, mortgage-backed securities and 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 exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options and 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 "Investment income (loss) from derivative instruments" 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 earnings (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. Mortgage Loans on Real Estate ("mortgage loans"): 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 net operating income divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. . Occupancy -- Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. F-12 . 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 Investments Under Surveillance ("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 problems 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 on real estate has been restructured to where the collection of interest is considered likely. At December 31, 2015 and 2014, the carrying values of commercial mortgage loans that had been classified as nonaccrual mortgage loans were $72 million and $89 million, respectively. Troubled Debt Restructuring When a loan modification is determined to be a troubled debt restructuring ("TDR"), the impairment of the loan is re-measured by discounting the expected cash flows to be received based on the modified terms using the loan's original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the mortgage loans. Additionally, the loan continues to be subject to the credit review process noted above. 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 securities are reflected in Net investment income (loss). F-13 Unrealized investment gains (losses) on fixed maturities and equity securities designated as AFS held by the Company are accounted for as a separate component of Accumulated Other Comprehensive Income ("AOCI"), net of related deferred income taxes, amounts attributable to certain pension operations, Closed Blocks' policyholders dividend obligation, insurance liability loss recognition and DAC related to universal life ("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 and equity securities classified as AFS and do not reflect any change in fair value of policyholders' account balances and future policy benefits. 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. The accounting guidance established 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. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Recognition of Insurance Income and Related Expenses Deposits related to 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. F-14 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. AXA Equitable FMG performs investment advisory and administrative services to investment companies, currently AXA Premier VIP Trust ("VIP Trust"), EQ Advisors Trust ("EQAT"), 1290 Funds, AXA Allocation Funds Trusts and AXA Offshore Multimanager Funds Trust ("Other AXA Trusts"). AXA Equitable FMG has entered into sub-advisory agreements with affiliated and unaffiliated registered investment advisers to provide sub-advisory services to AXA Equitable FMG with respect to certain portfolios of EQAT and the Other AXA Trusts. AXA Equitable FMG's administrative services include, among others, fund accounting and compliance services. AXA Equitable FMG has entered into a sub-administration agreement with JPMorgan Chase Bank, N.A. to provide certain sub-administration services to AXA Equitable FMG as instructed by AXA Equitable FMG. AXA Equitable FMG earns fees related to these services; the fees are calculated as a percentage of assets under management and are recorded in Commissions, fees and other income in the Consolidated statements of earnings (loss) as the related services are performed. Sub-advisory and sub-administrative expenses associated with the services are calculated and recorded as the related services are performed in Other operating costs and expenses in the Consolidated statements of earnings (loss). 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. 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. 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 Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, 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. 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 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. In second quarter 2015, based upon management's current expectations of interest rates and future fund growth, the Company updated its Reversion to the Mean ("RTM") F-15 assumption from 9.0% to 7.0%. The average gross long-term return measurement start date was also updated to December 31, 2014. 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, 2015, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.65% net of product weighted average Separate Account fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.65% net of product weighted average Separate Account fees) and 0.0% (-2.35% net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is 5 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. If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than 5 years in order to reach the average gross long-term return estimate, the application of the 5 year maximum duration limitation would result in an acceleration of DAC amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than 5 years would result in a required deceleration of DAC amortization. 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 quarterly 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, 2015, the average rate of assumed investment yields, excluding policy loans, was 5.1% grading to 4.5% over 10 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 is 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 earnings (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 is subject to recoverability testing as part of the Company's premium deficiency testing. If a premium deficiency exists, DAC is 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. Contractholder Bonus Interest Credits Contractholder 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 contractholder 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. Policyholders' Account Balances and Future Policy Benefits Policyholders' account balances for UL and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. The Company has issued and continues to offer certain variable annuity products with GMDB and Guaranteed income benefit ("GIB") features. The Company previously issued certain variable annuity products with Guaranteed withdrawal benefit for life ("GWBL") and other features. The Company also issues certain variable annuity products that contain a GMIB feature which, if elected by the policyholder after a F-16 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 GMIB base. Reserves for GMDB and GMIB obligations are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts. 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 reversion to the mean approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management's estimates. For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. For participating traditional life policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial 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 contractholders' fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 5.0% to 6.3% (weighted average of 5.1%) for approximately 99.0% of life insurance liabilities and from 1.6% to 6.5% (weighted average of 5.1%) for annuity liabilities. 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 reported in Policyholders' account balances in the consolidated balance sheets. As a member of the Federal Home Loan Bank of New York ("FHLBNY"), AXA Equitable has access to collateralized borrowings. AXA Equitable may also issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable to pledge qualified mortgage-backed assets and/or government securities as collateral. As entering into FHLBNY membership, borrowings and funding agreements requires the ownership of FHLB stock, AXA Equitable has purchased FHLBNY stock of $31 million, as of December 31, 2015. At December 31, 2015, AXA Equitable had $500 million of outstanding funding agreements with the FHLBNY. These funding agreements were used for asset liability management purposes. For other instruments used for asset liability management purposes, see "Derivative and offsetting assets and liabilities" included in Note 3. Accounting for Variable Annuities with GMDB and GMIB Features Future claims exposure on products with guaranteed minimum death benefit ("GMDB") and guaranteed minimum income benefit ("GMIB") features are sensitive to movements in the equity markets and interest rates. The Company has in place various hedging programs utilizing derivatives that are designed to mitigate the impact of movements in equity markets and interest rates. These various hedging programs do not qualify for hedge accounting treatment. As a result, changes in the value of the derivatives will be recognized in the period in which they occur while offsetting changes in reserves and deferred policy acquisition costs ("DAC") will be recognized over time in accordance with policies described below under "Policyholders' Account Balances and Future Policy Benefits" and "DAC". These differences in recognition contribute to earnings volatility. GMIB reinsurance contracts are used to cede to affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature. The GMIB reinsurance contracts are accounted for as derivatives and are reported at fair value. Gross reserves for GMIB are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts and therefore will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts. The changes in the fair value of the F-17 GMIB reinsurance contracts are recorded in the period in which they occur while offsetting changes in gross reserves and DAC for GMIB are recognized over time in accordance with policies described below under "Policyholders' Account Balances and Future Policy Benefits" and "DAC". These differences in recognition contribute to earnings volatility. Policyholders' Dividends The amount of policyholders' dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by AXA Equitable's board of directors. 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 AXA Equitable. At December 31, 2015, participating policies, including those in the Closed Block, represent approximately 5.2% ($18,599 million) of directly written life insurance in-force, net of amounts ceded. Separate Accounts Generally, Separate Accounts established under New York State Insurance Law are not chargeable with liabilities that arise from any other business of AXA Equitable. 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 Accounts represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of contractholders, 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. The assets and liabilities of seven Separate Accounts are presented and accounted for as General Account assets and liabilities due to the fact that not all of the investment performance in those Separate Accounts is passed through to policyholders. Investment assets in these Separate Accounts principally consist of fixed maturities that are classified as AFS in the accompanying consolidated financial statements. These Separate Accounts are combined on a line-by-line basis with the Company's General Account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the General Account. The investment results of Separate Accounts, including unrealized gains (losses), on which the Company does not bear the investment risk are reflected directly in Separate Accounts liabilities. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such Separate Accounts are offset within the same line in the consolidated statements of earnings (loss). For 2015, 2014 and 2013, investment results of such Separate Accounts were gains (losses) of $1,148 million, $5,959 million and $19,022 million, respectively. Deposits to Separate Accounts are reported as increases in Separate Accounts liabilities and are not reported in revenues. 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 equity investments in the consolidated balance sheets. Recognition of Investment Management Revenues and Related Expenses Commissions, fees and other income principally include the Investment Management segment's investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as basis points ("BPs"), of assets under management, are recorded as revenue as the related services are performed; they include brokerage transactions charges received by Sanford C. Bernstein & Co. LLC ("SCB LLC") for certain retail, private client and institutional investment client transactions. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time. Performance-based fees are recorded as a component of revenue at the end of each contract's measurement period. Institutional research services revenue consists of brokerage transaction charges received by SCB LLC and Sanford C. Bernstein Limited ("SCBL") for independent research and brokerage-related services provided to institutional investors. Brokerage transaction charges earned and related expenses are recorded on a trade date basis. Distribution revenues and shareholder servicing fees are accrued as earned. Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge ("back-end load shares") are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from F-18 contingent deferred sales commissions ("CDSC") received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Effective January 31, 2009, back-end load shares are no longer offered to new investors by AB's U.S. funds. Management tests the deferred sales commission asset for recoverability quarterly and determined that the balance as of December 31, 2015 was not impaired. AB's management determines recoverability by estimating undiscounted future cash flows to be realized from this asset, as compared to its recorded amount, as well as the estimated remaining life of the deferred sales commission asset over which undiscounted future cash flows are expected to be received. Undiscounted future cash flows consist of ongoing distribution services fees and CDSC. Distribution services fees are calculated as a percentage of average assets under management related to back-end load shares. CDSC are based on the lower of cost or current value, at the time of redemption, of back-end load shares redeemed and the point at which redeemed during the applicable minimum holding period under the mutual fund distribution system. Significant assumptions utilized to estimate future average assets under management and undiscounted future cash flows from back-end load shares include expected future market levels and redemption rates. Market assumptions are selected using a long-term view of expected average market returns based on historical returns of broad market indices. Future redemption rate assumptions are determined by reference to actual redemption experience over the five-year, three-year and one-year periods and current quarterly periods ended December 31, 2015. These assumptions are updated periodically. Estimates of undiscounted future cash flows and the remaining life of the deferred sales commission asset are made from these assumptions and the aggregate undiscounted cash flows are compared to the recorded value of the deferred sales commission asset. If AB's management determines in the future that the deferred sales commission asset is not recoverable, an impairment condition would exist and a loss would be measured as the amount by which the recorded amount of the asset exceeds its estimated fair value. Estimated fair value is determined using AB's management's best estimate of future cash flows discounted to a present value amount. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired companies, and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. ("Bernstein Acquisition") and the purchase of units of the limited partnership interest in AB ("AB Units"). In accordance with the guidance for Goodwill and Other Intangible Assets, goodwill is tested annually for impairment and at interim periods if events or circumstances indicate an impairment could have occurred. Intangible assets related to the Bernstein Acquisition and purchases of AB Units include values assigned to contracts of businesses acquired based on their estimated fair value at the time of acquisition, less accumulated amortization. These intangible assets are generally amortized on a straight-line basis over their estimated useful life of approximately 20 years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, additional impairment tests are performed to measure the amount of the impairment loss, if any. Other Accounting Policies 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. If an impairment is determined to have occurred, software capitalization is accelerated for the remaining balance deemed to be impaired. AXA Financial and certain of its consolidated subsidiaries and affiliates, including the Company, 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. F-19 Out of Period Adjustments In 2015, the Company recorded several out-of-period adjustments ("OOPA") in its financial statements These OOPAs resulted in understating the 2015 total revenues by $112 million, and understated total benefits and other deductions by $51 million. These OOPAs primarily related to errors in the models used to calculate the initial fee liability amortization, affiliated ceded reserves and deferred cost of reinsurance for certain of its variable and interest sensitive life ("VISL") products. In addition, the Company recorded an OOPA in 2015 related an error in the model used to calculate the deferred cost of reinsurance with an un-affiliated reinsurer related to the reinsurance of the Company's Disability Insurance ("DI") business. As a result of these OOPAs, the 2015 earnings (loss) from operations, before income tax was understated by $61 million, and the net earnings were understated by $40 million. In 2014, the Company recorded several OOPAs in its financial statements. The Company refined the models used to calculate the fair value of the GMIB reinsurance asset and the GMIB and GMDB liabilities. In addition, the Company recorded an OOPA related to an understatement of the dividend of AB Units by AXA Equitable to AXA Financial during the year ended December 31, 2013 and the related deferred tax liability for the excess of the fair value of the AB Unit dividend over the recorded value. The net impact of the corrections to AXA Equitable's shareholders' equity and Net earnings was a decrease of $1 million and an increase of $73 million, respectively. Management has evaluated the impact of all OOPAs both individually and in the aggregate and concluded they are not material to any previously reported quarterly or annual financial statements, or to the periods in which they were corrected. Assumption Updates and Refinements In 2015, expectations of long-term lapse and partial withdrawal rates for variable annuities with GMDB and GMIB guarantees were updated based on emerging experience. This update increases expected future claim costs and the fair value of the GMIB reinsurance contract asset. Also in 2015, expectations of GMIB election rates were lowered for certain ages based on emerging experience. This decreases the expected future GMIB claim cost and the fair value of the GMIB reinsurance contract asset, while increasing the expected future GMDB claim cost. The impact of these assumption updates in 2015 were a net decrease in the fair value of the GMIB reinsurance contract asset of $746 million, a decrease in the GMDB/GMIB reserves of $637 million and a decrease in the amortization of DAC of $17 million. In 2015, the after tax impacts of these assumption updates decreased Net earnings by approximately $60 million. Effective March 2016, the Company will raise cost of insurance ("COI") rates for certain UL policies issued between 2004 and 2007 which have both issue ages 70 and above and a current face value amount of $1 million and above. The Company is raising the COI rates for these policies as management expects future mortality and investment experience to be less favorable than what was anticipated when the current schedule of COI rates was established. This COI rate increase is larger than the increase that previously had been anticipated in management's reserve assumptions. As a result management updated the assumption to reflect the actual COI rate increase, resulting in a $46 million increase to net earnings for the year ended December 31, 2015. Additionally in 2015, based upon management's current expectations of interest rates and future fund growth, the Company updated its RTM assumption used to calculate GMDB/GMIB and VISL reserves and amortization of DAC from 9.0% to 7.0%. The impact of this assumption update in 2015 was an increase in GMIB/GMDB reserves of $723 million, an increase in VISL reserves of $29 million and decrease in amortization of DAC of $67 million. In 2015, the after tax impact of this assumption update decreased Net earnings by approximately $445 million. In 2014, the Company updated its assumptions of future GMIB costs as a result of lower expected short term lapses for those policyholders who did not accept the GMIB buyout offer that expired in third quarter 2014. The impacts of this refinement in 2014 resulted in an increase in the fair value of the GMIB reinsurance asset of $62 million and an increase in the GMIB reserves of $16 million. In 2014, the after DAC and after tax impact of this assumption update increased Net earnings by approximately $30 million. In addition, in 2014, the Company refined the fair value calculation of the GMIB reinsurance contract asset and GWBL, GIB and guaranteed minimum accumulation benefit ("GMAB") liabilities, utilizing scenarios that explicitly reflect risk free bond and equity components separately (previously aggregated and including counterparty risk premium embedded in swap rates) and stochastic interest rates for projecting and discounting cash flows (previously a single yield curve). The net impacts of these refinements in 2014 were a $510 million increase to the GMIB reinsurance contract asset and a $37 million increase in the GWBL, GIB and GMAB liability which are reported in the Company's consolidated statements of Earnings (Loss) as Increase (decrease) in the fair value of the reinsurance contract asset and Policyholders' benefits, respectively. In 2014, the after DAC and after tax impact of this refinements increased Net earnings by approximately $307 million. F-20 3) INVESTMENTS Fixed Maturities and Equity Securities The following table provides information relating to fixed maturities and equity securities classified as AFS: AVAILABLE-FOR-SALE SECURITIES BY CLASSIFICATION
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED OTTI COST GAINS LOSSES FAIR VALUE IN AOCI/(3)/ --------- ---------- ---------- ----------- ----------- (IN MILLIONS) DECEMBER 31, 2015 ----------------- Fixed Maturity Securities: Public corporate........................... $ 12,890 $ 688 $ 202 $ 13,376 $ -- Private corporate.......................... 6,818 232 124 6,926 -- U.S. Treasury, government and agency....... 8,800 280 305 8,775 -- States and political subdivisions.......... 437 68 1 504 -- Foreign governments........................ 397 36 18 415 -- Commercial mortgage-backed................. 591 29 87 533 9 Residential mortgage-backed/(1)/........... 608 32 -- 640 -- Asset-backed/(2)/.......................... 68 10 1 77 3 Redeemable preferred stock................. 592 57 2 647 -- --------- --------- ---------- ----------- ----------- Total Fixed Maturities.................... 31,201 1,432 740 31,893 12 Equity securities............................ 34 -- 2 32 -- --------- --------- ---------- ----------- ----------- Total at December 31, 2015................... $ 31,235 $ 1,432 $ 742 $ 31,925 $ 12 ========= ========= ========== =========== =========== December 31, 2014: ------------------ Fixed Maturity Securities: Public corporate........................... $ 13,808 $ 1,140 $ 51 $ 14,897 $ -- Private corporate.......................... 6,934 409 20 7,323 -- U.S. Treasury, government and agency....... 6,685 672 26 7,331 -- States and political subdivisions.......... 441 78 -- 519 -- Foreign governments........................ 405 48 7 446 -- Commercial mortgage-backed................. 855 22 142 735 10 Residential mortgage-backed/(1)/........... 752 43 -- 795 -- Asset-backed/(2)/.......................... 86 14 1 99 3 Redeemable preferred stock................. 829 70 10 889 -- --------- --------- ---------- ----------- ----------- Total Fixed Maturities.................... 30,795 2,496 257 33,034 13 Equity securities............................ 36 2 -- 38 -- --------- --------- ---------- ----------- ----------- Total at December 31, 2014................... $ 30,831 $ 2,498 $ 257 $ 33,072 $ 13 ========= ========= ========== =========== ===========
/(1)/Includes publicly traded agency pass-through securities and collateralized mortgage obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. /(3)/Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance. F-21 The contractual maturities of AFS fixed maturities (excluding redeemable preferred stock) at December 31, 2015 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. AVAILABLE-FOR-SALE FIXED MATURITIES CONTRACTUAL MATURITIES AT DECEMBER 31, 2015
AMORTIZED COST FAIR VALUE ---------- ---------- (IN MILLIONS) Due in one year or less...................... $ 1,469 $ 1,486 Due in years two through five................ 7,012 7,395 Due in years six through ten................. 10,429 10,406 Due after ten years.......................... 10,432 10,709 ---------- ---------- Subtotal.................................. 29,342 29,996 Commercial mortgage-backed securities........ 591 533 Residential mortgage-backed securities....... 608 640 Asset-backed securities...................... 68 77 ---------- ---------- Total........................................ $ 30,609 $ 31,246 ========== ==========
The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during 2015, 2014 and 2013:
December 31, --------------------------- 2015 2014 2013 ------- ------- --------- (IN MILLIONS) Proceeds from sales.......................... $ 979 $ 716 $ 3,220 ======= ======= ========= Gross gains on sales......................... $ 33 $ 21 $ 71 ======= ======= ========= Gross losses on sales........................ $ (8) $ (9) $ (88) ======= ======= ========= Total OTTI................................... $ (41) $ (72) $ (81) Non-credit losses recognized in OCI.......... -- -- 15 ------- ------- --------- Credit losses recognized in earnings (loss).. $ (41) $ (72) $ (66) ======= ======= =========
The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts. FIXED MATURITIES -- CREDIT LOSS IMPAIRMENTS
2015 2014 -------- -------- (IN MILLIONS) Balances at January 1,...................................... $ (254) $ (370) Previously recognized impairments on securities that matured, paid, prepaid or sold............................ 97 188 Recognized impairments on securities impaired to fair value this period/(1)/.......................................... (11) -- Impairments recognized this period on securities not previously impaired....................................... (22) (41) Additional impairments this period on securities previously impaired.................................................. (8) (31) 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,.................................... $ (198) $ (254) ======== ========
/(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-22 Net unrealized investment gains (losses) on fixed maturities and equity securities 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:
DECEMBER 31, ------------------ 2015 2014 ------- --------- (IN MILLIONS) AFS Securities: Fixed maturities: With OTTI loss............................. $ 16 $ 10 All other.................................. 676 2,229 Equity securities........................... (2) 2 ------- --------- Net Unrealized Gains (Losses)................. $ 690 $ 2,241 ======= =========
Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other: NET UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES WITH OTTI LOSSES
AOCI GAIN NET (LOSS) UNREALIZED DEFERRED RELATED TO GAIN INCOME NET UNREALIZED (LOSSES) ON POLICYHOLDERS TAX ASSET INVESTMENT INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES) ------------- ------- ------------- ----------- -------------- (IN MILLIONS) BALANCE, JANUARY 1, 2015..................... $ 10 $ -- $ -- $ (4) $ 6 Net investment gains (losses) arising during the period................................. (7) -- -- -- (7) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 13 -- -- -- 13 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- -- -- -- -- Deferred income taxes..................... -- -- -- (1) (1) Policyholders liabilities................. -- -- (4) -- (4) ------------- ------- ------------- ----------- -------------- BALANCE, DECEMBER 31, 2015................... $ 16 $ -- $ (4) $ (5) $ 7 ============= ======= ============= =========== ============== BALANCE, JANUARY 1, 2014..................... $ (28) $ 2 $ 10 $ 5 $ (11) Net investment gains (losses) arising during the period................................. (1) -- -- -- (1) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 39 -- -- -- 39 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- (2) -- -- (2) Deferred income taxes..................... -- -- -- (9) (9) Policyholders liabilities................. -- -- (10) -- (10) ------------- ------- ------------- ----------- -------------- BALANCE, DECEMBER 31, 2014................... $ 10 $ -- $ -- $ (4) $ 6 ============= ======= ============= =========== ==============
/(1)/Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. F-23 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, 2015..................... $ 2,231 $ (122) $ (368) $ (610) $ 1,131 Net investment gains (losses) arising during the period................................. (1,562) -- -- -- (1,562) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 5 -- -- -- 5 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- 40 -- -- 40 Deferred income taxes..................... -- -- -- 477 477 Policyholders liabilities................. -- -- 155 -- 155 ------------- --------- ------------- --------------- ---------------- BALANCE, DECEMBER 31, 2015................... $ 674 $ (82) $ (213) $ (133) $ 246 ============= ========= ============= =============== ================ BALANCE, JANUARY 1, 2014..................... $ 607 $ (107) $ (245) $ (90) $ 165 Net investment gains (losses) arising during the period................................. 1,606 -- -- -- 1,606 Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 18 -- -- -- 18 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- (15) -- -- (15) Deferred income taxes..................... -- -- -- (520) (520) Policyholders liabilities................. -- -- (123) -- (123) ------------- --------- ------------- --------------- ---------------- BALANCE, DECEMBER 31, 2014................... $ 2,231 $ (122) $ (368) $ (610) $ 1,131 ============= ========= ============= =============== ================
/(1)/Represents "transfers out" related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. F-24 The following tables disclose the fair values and gross unrealized losses of the 810 issues at December 31, 2015 and the 601 issues at December 31, 2014 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, 2015: ------------------ Fixed Maturity Securities: Public corporate........................... $ 3,091 $ 129 $ 359 $ 73 $ 3,450 $ 202 Private corporate.......................... 1,926 102 184 22 2,110 124 U.S. Treasury, government and agency....... 3,538 305 -- -- 3,538 305 States and political subdivisions.......... 19 1 -- -- 19 1 Foreign governments........................ 73 7 39 11 112 18 Commercial mortgage-backed................. 67 2 261 85 328 87 Residential mortgage-backed................ 11 -- 29 -- 40 -- Asset-backed............................... 11 -- 17 1 28 1 Redeemable preferred stock................. 43 -- 40 2 83 2 ---------- ------------ ---------- ---------- ---------- ---------- Total........................................ $ 8,779 $ 546 $ 929 $ 194 $ 9,708 $ 740 ========== ============ ========== ========== ========== ========== December 31, 2014: ------------------ Fixed Maturity Securities: Public corporate........................... $ 687 $ 18 $ 794 $ 33 $ 1,481 $ 51 Private corporate.......................... 627 11 254 9 881 20 U.S. Treasury, government and agency....... 280 6 373 20 653 26 States and political subdivisions.......... 21 -- -- -- 21 -- Foreign governments........................ 27 1 65 6 92 7 Commercial mortgage-backed................. 37 2 355 140 392 142 Residential mortgage-backed................ -- -- 35 -- 35 -- Asset-backed............................... -- -- 20 1 20 1 Redeemable preferred stock................. 42 -- 169 10 211 10 ---------- ------------ ---------- ---------- ---------- ---------- Total........................................ $ 1,721 $ 38 $ 2,065 $ 219 $ 3,786 $ 257 ========== ============ ========== ========== ========== ==========
The Company's investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of AXA Equitable, 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 0.3% of total investments. The largest exposures to a single issuer of corporate securities held at December 31, 2015 and 2014 were $157 million and $146 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 grade), 4 or 5 (below investment grade) or 6 (in or near default). At December 31, 2015 and 2014, respectively, approximately $1,310 million and $1,788 million, or 4.2% and 5.8%, of the $31,201 million and $30,795 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 of $97 million and $85 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, respectively, the $194 million and $219 million of gross unrealized losses of twelve months or more were concentrated in corporate and commercial mortgage-backed securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2015 or 2014. As of December 31, 2015, 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. The Company's fixed maturity investment portfolio includes residential mortgage backed securities ("RMBS") backed by subprime and Alt-A residential mortgages, comprised of loans made by banks or mortgage lenders to residential borrowers with lower credit ratings. The criteria used to categorize such subprime borrowers include Fair Isaac Credit Organization ("FICO") scores, interest rates charged, debt-to-income ratios and loan-to-value ratios. Alt-A residential mortgages are mortgage loans where the risk profile falls between prime and subprime; F-25 borrowers typically have clean credit histories but the mortgage loan has an increased risk profile due to higher loan-to-value and debt-to-income ratios and/or inadequate documentation of the borrowers' income. At December 31, 2015 and 2014, respectively, the Company owned $7 million and $8 million in RMBS backed by subprime residential mortgage loans, and $6 million and $7 million in RMBS backed by Alt-A residential mortgage loans. RMBS backed by subprime and Alt-A residential mortgages are fixed income investments supporting General Account liabilities. At December 31, 2015, the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $8 million. At December 31, 2015 and 2014, respectively, the amortized cost of the Company's trading account securities was $6,866 million and $5,160 million with respective fair values of $6,805 million and $5,143 million. Also at December 31, 2015 and 2014, respectively, Other equity investments included the General Account's investment in Separate Accounts which had carrying values of $82 million and $197 million and costs of $72 million and $185 million as well as other equity securities with carrying values of $32 million and $38 million and costs of $34 million and $36 million. Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the consolidated statements of earnings (loss). The table below shows a breakdown of Net investment income from trading account securities during the year ended 2015 and 2014: NET INVESTMENT INCOME (LOSS) FROM TRADING SECURITIES
TWELVE MONTHS ENDED -------------------------- DECEMBER 31, December 31, 2015 2014 ------------ ------------ (IN MILLIONS) Net investment gains (losses) recognized during the period on securities held at the end of the period...................... $ (63) $ -- Net investment gains (losses) recognized on securities sold during the period.......... 20 22 ------------ ------------ Unrealized and realized gains (losses) on trading securities......................... (43) 22 Interest and dividend income from trading securities................................. 60 41 ------------ ------------ Net investment income (loss) from trading securities................................. $ 17 $ 63 ============ ============
MORTGAGE LOANS The payment terms of mortgage loans may from time to time be restructured or modified. Troubled Debt Restructurings The investment in troubled debt restructured mortgage loans, based on amortized cost, amounted to $16 million and $93 million at December 31, 2015 and 2014, respectively. Gross interest income on these loans included in net investment income (loss) totaled $1 million, $1 million and $2 million in 2015, 2014 and 2013, respectively. Gross interest income on restructured mortgage loans that would have been recorded in accordance with the original terms of such loans amounted to $0 million, $4 million and $7 million in 2015, 2014 and 2013, respectively. The TDR mortgage loan shown in the table below has been modified four times since 2011. The modifications were to extend the maturity from its original maturity of November 5, 2014 to December 5, 2016 and to extend interest only payments through maturity. In November 2015, the recorded investment was reduced by $45 million in conjunction with the sale of majority of the underlying collateral and $32 million from a charge-off. The remaining $16 million mortgage loan balance reflects the value of the remaining underlying collateral and cash held in escrow, supporting the mortgage loan. Since the fair market value of the underlying real estate and cash held in escrow collateral is the primary factor in determining the allowance for credit losses, modifications of loan terms typically have no direct impact on the allowance for credit losses, and therefore, no impact on the financial statements. TROUBLED DEBT RESTRUCTURING -- MODIFICATIONS DECEMBER 31, 2015
OUTSTANDING RECORDED INVESTMENT NUMBER ---------------------------------- OF LOANS PRE-MODIFICATION POST-MODIFICATION -------- ---------------- ----------------- (DOLLARS IN MILLIONS) Commercial mortgage loans.................... 1 $ 16 $ 16
There were no default payments on the above loan during 2015. There were no agricultural troubled debt restructuring mortgage loans in 2015. F-26 Valuation Allowances for Mortgage Loans: Allowance for credit losses for mortgage loans for 2015, 2014 and 2013 are as follows:
COMMERCIAL MORTGAGE LOANS ------------------------- 2015 2014 2013 ------- ------- ------- (IN MILLIONS) ALLOWANCE FOR CREDIT LOSSES: Beginning Balance, January 1,................ $ 37 $ 42 $ 34 Charge-offs............................... (32) (14) -- Recoveries................................ (1) -- (2) Provision................................. 2 9 10 ------- ------- ------- Ending Balance, December 31,................. $ 6 $ 37 $ 42 ======= ======= ======= Ending Balance, December 31,: Individually Evaluated for Impairment..... $ 6 $ 37 $ 42 ======= ======= =======
There were no allowances for credit losses for agricultural mortgage loans in 2015, 2014 and 2013. 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, 2015 and 2014, respectively. 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. MORTGAGE LOANS BY LOAN-TO-VALUE AND DEBT SERVICE COVERAGE RATIOS DECEMBER 31, 2015
DEBT SERVICE COVERAGE RATIO ---------------------------------------------------- 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) COMMERCIAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 533 $ -- $ 102 $ 12 $ 24 $ -- $ 671 50% - 70%.................................... 1,392 353 741 853 77 -- 3,416 70% - 90%.................................... 141 -- 206 134 124 46 651 90% plus..................................... 63 -- -- 46 -- -- 109 ---------- ------- -------- -------- ------- ------- --------- Total Commercial Mortgage Loans.............. $ 2,129 $ 353 $ 1,049 $ 1,045 $ 225 $ 46 $ 4,847 ========== ======= ======== ======== ======= ======= ========= AGRICULTURAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 204 $ 116 $ 277 $ 432 $ 256 $ 51 $ 1,336 50% - 70%.................................... 146 80 192 298 225 47 988 70% - 90%.................................... -- -- 2 4 -- -- 6 90% plus..................................... -- -- -- -- -- -- -- ---------- ------- -------- -------- ------- ------- --------- Total Agricultural Mortgage Loans............ $ 350 $ 196 $ 471 $ 734 $ 481 $ 98 $ 2,330 ========== ======= ======== ======== ======= ======= ========= TOTAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 737 $ 116 $ 379 $ 444 $ 280 $ 51 $ 2,007 50% - 70%.................................... 1,538 433 933 1,151 302 47 4,404 70% - 90%.................................... 141 -- 208 138 124 46 657 90% plus..................................... 63 -- -- 46 -- -- 109 ---------- ------- -------- -------- ------- ------- --------- Total Mortgage Loans......................... $ 2,479 $ 549 $ 1,520 $ 1,779 $ 706 $ 144 $ 7,177 ========== ======= ======== ======== ======= ======= =========
/(1)/The debt service coverage ratio is calculated using the most recently reported net 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. F-27 Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2014
Debt Service Coverage Ratio -------------------------------------------------- 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)/ --------- ------- -------- -------- ------- ------ -------- Commercial Mortgage Loans/(1)/ (In Millions) 0% - 50%..................................... $ 335 $ -- $ -- $ 59 $ 34 $ -- $ 428 50% - 70%.................................... 963 440 872 839 54 -- 3,168 70% - 90%.................................... 211 -- 61 265 79 -- 616 90% plus..................................... 156 -- -- -- -- 47 203 --------- ------- -------- -------- ------- ------ -------- Total Commercial Mortgage Loans.............. $ 1,665 $ 440 $ 933 $ 1,163 $ 167 $ 47 $ 4,415 ========= ======= ======== ======== ======= ====== ======== Agricultural Mortgage Loans/(1)/ 0% - 50%..................................... $ 184 $ 100 $ 232 $ 408 $ 206 $ 50 $ 1,180 50% - 70%.................................... 143 87 201 223 204 47 905 70% - 90%.................................... -- -- -- -- -- -- -- 90% plus..................................... -- -- -- -- -- -- -- --------- ------- -------- -------- ------- ------ -------- Total Agricultural Mortgage Loans............ $ 327 $ 187 $ 433 $ 631 $ 410 $ 97 $ 2,085 ========= ======= ======== ======== ======= ====== ======== Total Mortgage Loans/(1)/ 0% - 50%..................................... $ 519 $ 100 $ 232 $ 467 $ 240 $ 50 $ 1,608 50% - 70%.................................... 1,106 527 1,073 1,062 258 47 4,073 70% - 90%.................................... 211 -- 61 265 79 -- 616 90% plus..................................... 156 -- -- -- -- 47 203 --------- ------- -------- -------- ------- ------ -------- Total Mortgage Loans......................... $ 1,992 $ 627 $ 1,366 $ 1,794 $ 577 $ 144 $ 6,500 ========= ======= ======== ======== ======= ====== ========
/(1)/The debt service coverage ratio is calculated using the most recently reported net 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, 2015 and 2014, respectively. AGE ANALYSIS OF PAST DUE MORTGAGE LOAN
RECORDED INVESTMENT TOTAL (GREATER THAN) 90 DAYS 30-59 60-89 90 DAYS FINANCING AND DAYS DAYS OR (GREATER THAN) TOTAL CURRENT RECEIVABLES ACCRUING ----- ----- ----------------- ----- -------- ----------- ---------------------- (IN MILLIONS) DECEMBER 31, 2015: ------------------ Commercial................................. $ -- $ -- $ 30 $ 30 $ 4,817 $ 4,847 $ -- Agricultural............................... 12 7 4 23 2,307 2,330 4 ----- ----- ------- ----- -------- ---------- ---------- TOTAL MORTGAGE LOANS......................... $ 12 $ 7 $ 34 $ 53 $ 7,124 $ 7,177 $ 4 ===== ===== ======= ===== ======== ========== ========== December 31, 2014: ------------------ Commercial................................. $ -- $ -- $ -- $ -- $ 4,415 $ 4,415 $ -- Agricultural............................... 1 7 3 11 2,074 2,085 3 ----- ----- ------- ----- -------- ---------- ---------- Total Mortgage Loans......................... $ 1 $ 7 $ 3 $ 11 $ 6,489 $ 6,500 $ 3 ===== ===== ======= ===== ======== ========== ==========
F-28 The following table provides information relating to impaired mortgage loans at December 31, 2015 and 2014, respectively. IMPAIRED MORTGAGE LOANS
UNPAID AVERAGE INTEREST RECORDED PRINCIPAL RELATED RECORDED INCOME INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED ---------- ---------- ---------- --------------- ---------- (IN MILLIONS) DECEMBER 31, 2015: ------------------ With no related allowance recorded: Commercial mortgage loans -- other........................... $ 46 $ 46 $ -- $ 15 $ -- Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- TOTAL.............................. $ 46 $ 46 $ -- $ 15 $ -- ========== ========== ========== =============== ========== With related allowance recorded: Commercial mortgage loans -- other........................... $ 63 $ 63 $ (6) $ 137 $ 4 Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- TOTAL.............................. $ 63 $ 63 $ (6) $ 137 $ 4 ========== ========== ========== =============== ========== December 31, 2014: ------------------ With no related allowance recorded: Commercial mortgage loans -- other........................... $ -- $ -- $ -- $ -- $ -- Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- Total.............................. $ -- $ -- $ -- $ -- $ -- ========== ========== ========== =============== ========== With related allowance recorded: Commercial mortgage loans -- other........................... $ 156 $ 156 $ (37) $ 148 $ 2 Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- Total.............................. $ 156 $ 156 $ (37) $ 148 $ 2 ========== ========== ========== =============== ==========
/(1)/Represents a five-quarter average of recorded amortized cost. EQUITY METHOD INVESTMENTS Included in other equity investments are limited partnership interests and investment companies accounted for under the equity method with a total carrying value of $1,363 million and $1,490 million, respectively, at December 31, 2015 and 2014. The Company's total equity in net earnings (losses) for these limited partnership interests was $71 million, $206 million and $206 million, respectively, for 2015, 2014 and 2013. 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 the NYDFS. 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, swaptions, variance swaps, equity options as well as repo transactions, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits' exposures attributable to movements in capital markets. Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer certain variable annuity products with GMDB, GMIB and GIB features. The Company had previously issued certain variable annuity products with GWBL, guaranteed minimum withdrawal benefit ("GMWB") and GMAB features (collectively, "GWBL and Other 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 benefits, in the event of annuitization, being higher than what accumulated policyholders' account balances would support, taking into F-29 account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with the GIB and GWBL and Other Features is that under-performance of the financial markets could result in the GIB and GWBL and Other Features' benefits being higher than what accumulated policyholders' account balances would support. For GMDB, GMIB, GIB and GWBL and Other Features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contractholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMDB, GMIB, GIB and GWBL and Other 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. The Company has in place a hedge program utilizing interest rate swaps to partially protect the overall profitability of future variable annuity sales against declining interest rates. 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(R) ("SCS") variable annuity, Structured Investment Option in the EQUI-VEST(R) variable annuity series ("SIO"), Market Stabilizer Option(R) ("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. Derivatives utilized to hedge risks associated with interest margins on Interest Sensitive Life and Annuity Contracts Margins or "spreads" on interest-sensitive life insurance and annuity contracts are affected by interest rate fluctuations as the yield on portfolio investments, primarily fixed maturities, is intended to support required payments under these contracts, including interest rates credited to their policy and contract holders. From time to time, the Company uses interest rate swaptions and other instruments to reduce the risk associated with minimum guarantees on these interest-sensitive contracts. At December 31, 2015 and 2014, there were no positions outstanding for these programs. Derivatives utilized to hedge equity market risks associated with the General Account's seed money investments in Separate Accounts, retail mutual funds and Separate Account fee revenue fluctuations The Company's General Account seed money investments in Separate Account equity funds and retail mutual funds exposes the Company to market risk, including equity market risk, which is partially hedged through equity-index futures contracts to minimize such risk. In second quarter 2015, the Company entered into futures on equity indices to mitigate the impact on net earnings from Separate Account fee revenue fluctuations due to movements in the equity markets. These positions partially cover fees expected to be earned through the current year from the Company's Separate Account products. Derivatives utilized for General Account Investment Portfolio Beginning in the second quarter of 2013, the Company implemented a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible 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 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 has transacted the sale of CDSs exclusively 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 F-30 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-equivalent of the derivative notional amount. The Standard North American CDS Contract ("SNAC") under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. Periodically, the Company purchases 30-year, Treasury Inflation Protected Securities ("TIPS") and other sovereign inflation bonds as General Account investments and enters into asset swaps, to result in payment of the variable principal at maturity and semi-annual coupons of the bonds to the swap counterparty (pay variable) in return for fixed amounts (receive fixed). These asset 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. In third quarter of 2014, 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 credit default swap index ("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 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) from derivative instruments. 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 OR FOR THE YEAR ENDED DECEMBER 31, 2015
FAIR VALUE ------------------------ GAINS (LOSSES) NOTIONAL ASSET LIABILITY REPORTED IN AMOUNT DERIVATIVES DERIVATIVES EARNINGS (LOSS) --------- ----------- ------------ --------------- (IN MILLIONS) FREESTANDING DERIVATIVES: Equity contracts:/(1)/ Futures.................................... $ 7,089 $ 2 $ 3 $ (84) Swaps...................................... 1,359 8 21 (45) Options.................................... 7,358 1,042 652 14 Interest rate contracts:/(1)/ Floors..................................... 1,800 61 -- 12 Swaps...................................... 13,718 351 108 (8) Futures.................................... 8,685 -- -- (81) Swaptions.................................. -- -- -- 118 Credit contracts:/(1)/ Credit default swaps....................... 2,442 16 38 (14) Other freestanding contracts:/(1)/ Foreign currency Contracts................. 263 5 4 7 --------------- NET INVESTMENT INCOME (LOSS)................. (81) --------------- EMBEDDED DERIVATIVES: GMIB reinsurance contracts................... -- 10,570 -- (141) GIB and GWBL and other features/(2)/......... -- -- 184 (56) SCS, SIO, MSO and IUL indexed features/(3)/.. -- -- 310 (38) --------- ----------- ------------ --------------- Balances, December 31, 2015.................. $ 42,714 $ 12,055 $ 1,320 $ (260) ========= =========== ============ ===============
/(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 and SIO indexed features are reported in Policyholders' account balances; MSO and IUL indexed features are reported in Future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. F-31 Derivative Instruments by Category At or For the Year Ended December 31, 2014
Fair Value ------------------------ Gains (Losses) Notional Asset Liability Reported In Amount Derivatives Derivatives Earnings (Loss) --------- ----------- ------------ ------------------ (In Millions) Freestanding derivatives: Equity contracts:/(1)/ Futures.................................... $ 5,933 $ 1 $ 2 $ (522) Swaps...................................... 1,169 22 15 (88) Options.................................... 6,896 1,215 742 196 Interest rate contracts:/(1)/ Floors..................................... 2,100 120 -- 9 Swaps...................................... 11,608 605 15 1,507 Futures.................................... 10,647 -- -- 459 Swaptions.................................. 4,800 72 -- 37 Credit contracts:/(1)/ Credit default swaps....................... 1,942 9 27 4 Other freestanding contracts:/(1)/ Foreign currency Contracts................. 149 2 -- 3 ------------------ Net investment income (loss)................. 1,605 ------------------ Embedded derivatives: GMIB reinsurance contracts................... -- 10,711 -- 3,964 GIB and GWBL and other features/(2)/......... -- -- 128 (128) SCS, SIO, MSO and IUL indexed features/(3)/.. -- -- 380 (199) --------- ----------- ------------ ------------------ Balances, December 31, 2014.................. $ 45,244 $ 12,757 $ 1,309 $ 5,242 ========= =========== ============ ==================
/(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 and SIO indexed features are reported in Policyholders' account balances; MSO and IUL indexed features are reported in Future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. EQUITY-BASED AND TREASURY FUTURES CONTRACTS All outstanding equity-based and treasury futures contracts at December 31, 2015 are exchange-traded and net settled daily in cash. At December 31, 2015, the Company had open exchange-traded futures positions on: (i) the S&P 500, Russell 2000, NASDAQ 100 and Emerging Market indices, having initial margin requirements of $276 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 $33 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 $49 million. CREDIT RISK Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measure of credit risk. A derivative with positive fair value (a derivative asset) indicates existence of credit risk because the counterparty would owe money to the Company if the contract were closed at the reporting date. Alternatively, a derivative contract with negative fair value (a derivative liability) indicates the Company would owe money to the counterparty if the contract were closed at the reporting date. To reduce credit exposures in OTC derivative transactions the Company generally enters into master agreements that provide for a netting of financial exposures with the counterparty and allow for collateral arrangements as further described below under "ISDA Master Agreements." The Company further controls and minimizes its counterparty exposure through a credit appraisal and approval process. F-32 ISDA MASTER AGREEMENTS NETTING PROVISIONS. The standardized "ISDA Master Agreement" under which the Company conducts its OTC derivative transactions includes provisions for payment netting. In the normal course of business activities, if there is more than one derivative transaction with a single counterparty, the Company will set-off the cash flows of those derivatives into a single amount to be exchanged in settlement of the resulting net payable or receivable with that counterparty. In the event of default, insolvency, or other similar event pre-defined under the ISDA Master Agreement that would result in termination of OTC derivatives transactions before their maturity, netting procedures would be applied to calculate a single net payable or receivable with the counterparty. COLLATERAL ARRANGEMENTS. The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its 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. These CSAs are bilateral agreements that require collateral postings by the party "out-of-the-money" or in a net derivative liability position. Various thresholds for the amount and timing of collateralization of net liability positions are applicable. Consequently, the credit exposure of the Company's OTC derivative contracts is limited to the net positive estimated fair value of those contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to CSAs. Derivatives are recognized at fair value in the consolidated balance sheets and are reported either as assets in Other invested assets or as liabilities in Other liabilities, except for embedded insurance-related derivatives as described above and derivatives transacted with a related counterparty. 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, 2015 and 2014, respectively, the Company held $655 million and $1,225 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. This unrestricted cash collateral is reported in Cash and cash equivalents, and the obligation to return it is reported in Other liabilities in the consolidated balance sheets. The aggregate fair value of all collateralized derivative transactions that were in a liability position with trade counterparties December 31, 2015 and 2014, respectively, were $5 million and $28 million, for which the Company posted collateral of $5 million and $36 million at December 31, 2015 and 2014, respectively, in the normal operation of its collateral arrangements. Certain of the Company's ISDA Master Agreements contain contingent provisions that permit the counterparty to terminate the ISDA Master Agreement if the Company's credit rating falls below a specified threshold, however, the occurrence of such credit event would not impose additional collateral requirements. 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 specificities of each respective counterparty. These agreements generally provide detail as to the nature of the transaction, including provisions for payment netting, establish parameters concerning the ownership and custody of the collateral securities, including the right to substitute collateral during the term of the agreement, and provide for remedies in the event of default by either party. Amounts due to/from the same counterparty under these arrangements generally would be netted in the event of default and subject to rights of set-off in bankruptcy. 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. The Company obtains or posts collateral generally in the form of cash, U.S. Treasury, corporate and government agency securities. The fair value of the securities to be repurchased or resold are monitored on a daily basis with additional collateral posted or obtained as necessary. Securities to be repurchased or resold are the same, or substantially the same, as those initially transacted under the arrangement. At December 31, 2015 and 2014, the balance outstanding under reverse repurchase transactions was $79 million and $0 million, respectively. At December 31, 2015 and 2014, the balance outstanding under securities repurchase transactions was $1,890 million and $950 million, respectively. The Company utilized these repurchase agreements for asset liability management purposes. For other instruments used for asset liability management purposes, see "Policyholders' Account Balances and Future Policy Benefits" included in Note 2. F-33 The following table presents information about the Insurance Segment's offsetting of financial assets and liabilities and derivative instruments at December 31, 2015. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS AT DECEMBER 31, 2015
GROSS GROSS AMOUNTS NET AMOUNTS AMOUNTS OFFSET IN THE PRESENTED IN THE RECOGNIZED BALANCE SHEETS BALANCE SHEETS ---------- --------------- ----------------- (IN MILLIONS) ASSETS/(1)/ DESCRIPTION Derivatives: Equity contracts............................. $ 1,049 $ 673 $ 376 Interest rate contracts...................... 389 104 285 Credit contracts............................. 14 37 (23) ---------- --------------- ----------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 1,452 814 638 Total Derivatives, not subject to an ISDA Master Agreement........................... 20 -- 20 ---------- --------------- ----------------- Total Derivatives.......................... 1,472 814 658 Other financial instruments/(2)(4)/.......... 1,271 -- 1,271 ---------- --------------- ----------------- Other invested assets/(2)/................. $ 2,743 $ 814 $ 1,929 ========== =============== ================= Securities purchased under agreement to resell..................................... $ 79 $ -- $ 79 ========== =============== =================
GROSS GROSS AMOUNTS NET AMOUNTS AMOUNTS OFFSET IN THE PRESENTED IN THE RECOGNIZED BALANCE SHEETS BALANCE SHEETS ---------- --------------- ----------------- (IN MILLIONS) LIABILITIES/(3)/ DESCRIPTION Derivatives: Equity contracts............................. $ 673 $ 673 $ -- Interest rate contracts...................... 104 104 -- Credit contracts............................. 37 37 -- ---------- --------------- ----------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 814 814 -- Total Derivatives, not subject to an ISDA Master Agreement........................... -- -- -- ---------- --------------- ----------------- Total Derivatives.......................... 814 814 -- Other financial liabilities.................. 2,586 -- 2,586 ---------- --------------- ----------------- Other liabilities.......................... $ 3,400 $ 814 $ 2,586 ========== =============== ================= Securities sold under agreement to repurchase $ 1,890 $ -- $ 1,890 ========== =============== =================
/(1)/Excludes Investment Management segment's $13 million net derivative assets, $6 million long exchange traded options and $75 million of securities borrowed. /(2)/Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's $12 million net derivative liabilities, $1 million short exchange traded options and $10 million of securities loaned. /(4)/Includes margin of $(2) million related to derivative instruments. F-34 The following table presents information about the Insurance segment's gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2015. GROSS COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2015
COLLATERAL (RECEIVED)/HELD NET AMOUNTS ------------------------- PRESENTED IN THE FINANCIAL NET BALANCE SHEETS INSTRUMENTS CASH AMOUNTS ---------------------- ------------ -------- --------- (IN MILLIONS) ASSETS/(1)/ Counterparty A............................... $ 52 $ -- $ (52) $ -- Counterparty B............................... 9 -- (7) 2 Counterparty C............................... 61 -- (58) 3 Counterparty D............................... 222 -- (218) 4 Counterparty E............................... 53 -- (53) -- Counterparty F............................... (2) -- 2 -- Counterparty G............................... 129 -- (129) -- Counterparty H............................... 16 (11) (5) -- Counterparty I............................... 44 -- (39) 5 Counterparty J............................... 19 -- (13) 6 Counterparty K............................... 17 -- (17) -- Counterparty L............................... 7 -- (7) -- Counterparty M............................... 11 -- (10) 1 Counterparty N............................... 20 -- -- 20 Counterparty Q............................... -- -- -- -- Counterparty T............................... (3) -- 3 -- Counterparty U............................... -- -- 1 1 Counterparty V............................... 3 -- (3) -- ---------------------- ------------ -------- --------- Total Derivatives.......................... $ 658 $ (11) $ (605) $ 42 Other financial instruments/(2)(4)/.......... 1,271 -- -- 1,271 ---------------------- ------------ -------- --------- OTHER INVESTED ASSETS/(2)/................. $ 1,929 $ (11) $ (605) $ 1,313 ====================== ============ ======== ========= Counterparty M............................... $ 28 $ (28) $ -- $ -- Counterparty V............................... 51 (51) -- -- ---------------------- ------------ -------- --------- Securities purchased under agreement to resell.................................... $ 79 $ (79) $ -- $ -- ====================== ============ ======== ========= COLLATERAL (RECEIVED)/HELD NET AMOUNTS ------------------------- PRESENTED IN THE FINANCIAL NET BALANCE SHEETS INSTRUMENTS CASH AMOUNTS ---------------------- ------------ -------- --------- (IN MILLIONS) LIABILITIES/(3)/ Counterparty D............................... $ 234 $ (234) $ -- -- Counterparty C............................... 1,033 (1,016) (17) -- Counterparty M............................... 623 (611) (12) -- ---------------------- ------------ -------- --------- Securities sold under agreement to repurchase................................ $ 1,890 $ (1,861) $ (29) $ -- ====================== ============ ======== =========
/(1)/Excludes Investment Management segment's cash collateral received of $2 million related to derivative assets and $75 million related to securities borrowed. /(2)/Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's cash collateral pledged of $12 million related to derivative liabilities and $10 million related to securities loaned. /(4)/Includes margin of $(2) million related to derivative instruments. F-35 The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2015. REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS/(1)/
AT DECEMBER 31, 2015 ------------------------------------------------------- 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 U.S. Treasury and agency securities....... $ -- $ 1,865 $ 25 $ -- $ 1,890 ------------- ---------- -------- ------------ -------- Total........................................ $ -- $ 1,865 $ 25 $ -- $ 1,890 ------------- ---------- -------- ------------ -------- SECURITIES PURCHASED UNDER AGREEMENT TO RESELL Corporate securities...................... $ -- $ 79 $ -- $ -- $ 79 ------------- ---------- -------- ------------ -------- Total........................................ $ -- $ 79 $ -- $ -- $ 79 ------------- ---------- -------- ------------ --------
/(1)/Excludes Investment Management segment's $75 million of securities borrowed. The following table presents information about the Insurance segment's offsetting of financial assets and liabilities and derivative instruments at December 31, 2014. Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2014
Gross Gross Amounts Net Amounts Amounts Offset in the Presented in the Recognized Balance Sheets Balance Sheets ---------- -------------- ---------------- (In Millions) ASSETS/(1)/ Description Derivatives: Equity contracts............................. $ 1,236 $ 753 $ 483 Interest rate contracts...................... 755 12 743 Credit contracts............................. 7 27 (20) ---------- ------------- -------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 1,998 792 1,206 Total Derivatives, not subject to an ISDA Master Agreement........................... 40 -- 40 ---------- ------------- -------------- Total Derivatives.......................... 2,038 792 1,246 Other financial instruments/(2)/............. 852 -- 852 ---------- ------------- -------------- Other invested assets/(2)/................. $ 2,890 $ 792 $ 2,098 ========== ============= ============== LIABILITIES/(3)/ Description Derivatives: Equity contracts............................. $ 753 $ 753 $ -- Interest rate contracts...................... 12 12 -- ---------- ------------- -------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 765 765 -- Total Derivatives, not subject to an ISDA Master Agreement........................... -- -- -- ---------- ------------- -------------- Total Derivatives.......................... 765 765 -- Other financial liabilities.................. 2,939 -- 2,939 ---------- ------------- -------------- Other liabilities.......................... $ 3,704 $ 765 $ 2,939 ---------- ------------- -------------- Securities sold under agreement to repurchase $ 950 $ -- $ 950 ========== ============= ==============
/(1)/Excludes Investment Management segment's $8 million net derivative assets, $22 million long exchange traded options and $158 million of securities borrowed. /(2)/Includes $120 million related to accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's $9 million net derivative liabilities, $7 million short exchange traded options and $34 million of securities loaned. F-36 The following table presents information about the Insurance segment's gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2014. Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2014
Collateral (Received)/Held Net Amounts ------------------------ Presented in the Financial Net Balance Sheets Instruments Cash Amounts ---------------- ----------- ----------- ---------- (In Millions) ASSETS/(1)/ Counterparty A............................... $ 62 $ -- $ (62) $ -- Counterparty B............................... 102 -- (95) 7 Counterparty C............................... 111 -- (110) 1 Counterparty D............................... 228 -- (224) 4 Counterparty E............................... 60 -- (59) 1 Counterparty F............................... 63 -- (60) 3 Counterparty G............................... 145 (145) -- -- Counterparty H............................... 31 (31) -- -- Counterparty I............................... 136 -- (134) 2 Counterparty J............................... 28 -- (22) 6 Counterparty K............................... 44 -- (44) -- Counterparty L............................... 113 (113) -- -- Counterparty M............................... 76 -- (68) 8 Counterparty N............................... 40 -- -- 40 Counterparty Q............................... 4 -- (4) -- Counterparty T............................... 3 -- (3) -- --------------- ---------- ----------- ---------- Total Derivatives.......................... $ 1,246 $ (289) $ (885) $ 72 Other financial instruments/(2)/............. 852 -- -- 852 --------------- ---------- ----------- ---------- Other invested assets/(2)/................. $ 2,098 $ (289) $ (885) $ 924 =============== ========== =========== ========== LIABILITIES/(3)/ Counterparty D............................... $ 450 $ (450) $ -- -- Counterparty C............................... 500 (500) -- -- --------------- ---------- ----------- ---------- Securities sold under agreement to repurchase................................ $ 950 $ (950) $ -- $ -- =============== ========== =========== ==========
/(1)/Excludes Investment Management segment's cash collateral received of $1 million related to derivative assets and $158 million related to securities borrowed. /(2)/Includes $120 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's cash collateral pledged of $10 million related to derivative liabilities and $34 million related to securities loaned. F-37 NET INVESTMENT INCOME (LOSS) The following table breaks out Net investment income (loss) by asset category:
2015 2014 2013 -------- -------- -------- (IN MILLIONS) Fixed maturities............................. $ 1,420 $ 1,431 $ 1,462 Mortgage loans on real estate................ 338 306 284 Repurchase agreement......................... 1 -- -- Other equity investments..................... 84 200 228 Policy loans................................. 213 216 219 Derivative investments....................... (81) 1,605 (2,866) Trading securities........................... 17 63 54 Other investment income...................... 40 49 50 -------- -------- -------- Gross investment income (loss)............. 2,032 3,870 (569) Investment expenses.......................... (53) (53) (57) Interest expense............................. (3) (2) (3) -------- -------- -------- Net Investment Income (Loss)................. $ 1,976 $ 3,815 $ (629) ======== ======== ========
For 2015, 2014 and 2013, respectively, Net investment income (loss) from derivatives included $474 million, $899 million and $(2,829) million of realized gains (losses) on contracts closed during those periods and $(555) million, $706 million and $(37) million of unrealized gains (losses) on derivative positions at each respective year end. INVESTMENT GAINS (LOSSES), NET Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) Fixed maturities............................. $ (17) $ (54) $ (75) Mortgage loans on real estate................ (1) (3) (7) Other equity investments..................... (5) (2) (17) Other........................................ 3 1 -- ------ ------ ------ Investment Gains (Losses), Net............... $ (20) $ (58) $ (99) ====== ====== ======
For 2015, 2014 and 2013, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders' account balances totaled $4 million, $5 million and $8 million. 4) GOODWILL AND OTHER INTANGIBLE ASSETS The carrying value of goodwill related to AB totaled $3,562 million and $3,562 million at December 31, 2015 and 2014, respectively. The Company annually tests this goodwill for recoverability at December 31. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of its investment in AB, the reporting unit, to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not considered to be impaired and the second step of the impairment test is not performed. However, if the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed by measuring the amount of impairment loss only if the result indicates a potential impairment. The second step compares the implied fair value of the reporting unit to the aggregated fair values of its individual assets and liabilities to determine the amount of impairment, if any. The Company also assesses this goodwill for recoverability at each interim reporting period in consideration of facts and circumstances that may indicate a shortfall of the fair value of its investment in AB as compared to its carrying value and thereby require re-performance of its annual impairment testing. The Company primarily uses a discounted cash flow valuation technique to measure the fair value of its investment in AB for purpose of goodwill impairment testing. The cash flows used in this technique are sourced from AB's current business plan and projected thereafter over the estimated life of the goodwill asset by applying an annual growth rate assumption. The present value amount that results from discounting these expected cash flows is then adjusted to reflect the noncontrolling interest in AB as well as taxes incurred at the Company level in order to determine the fair value of its investment in AB. At December 31, 2015 and 2014, the Company determined that goodwill was not impaired as the fair value of its investment in AB exceeded its carrying value at each respective date. Similarly, no impairments resulted from the Company's interim assessments of goodwill recoverability during the periods then ended. F-38 The gross carrying amount of AB related intangible assets was $610 million and $610 million at December 31, 2015 and 2014, respectively and the accumulated amortization of these intangible assets was $439 million and $411 million at December 31, 2015 and 2014, respectively. Amortization expense related to the AB intangible assets totaled $28 million, $27 million and $24 million for 2015, 2014 and 2013, respectively, and estimated amortization expense for each of the next five years is expected to be approximately $29 million. At December 31, 2015 and 2014, respectively, net deferred sales commissions totaled $99 million and $118 million and are included within Other assets. The estimated amortization expense of deferred sales commissions, based on the December 31, 2015 net asset balance for each of the next five years is $41 million, $32 million, $21 million, $5 million and $0 million. The Company tests the deferred sales commission asset for impairment quarterly by comparing undiscounted future cash flows to the recorded value, net of accumulated amortization. Each quarter, significant assumptions used to estimate the future cash flows are updated to reflect management's consideration of current market conditions on expectations made with respect to future market levels and redemption rates. As of December 31, 2015, the Company determined that the deferred sales commission asset was not impaired. On June 20, 2014, AB acquired an approximate 82.0% ownership interest in CPH Capital Fondsmaeglerselskab A/S ("CPH"), a Danish asset management firm that managed approximately $3,000 million in global core equity assets for institutional investors, for a cash payment of $64 million and a contingent consideration payable of $9 million. The excess of the purchase price over the fair value of identifiable assets acquired resulted in the recognition of $58 million of goodwill. AB recorded $24 million of finite-lived intangible assets relating to separately-managed account relationships and $4 million of indefinite-lived intangible assets relating to an acquired fund's investment contract. AB also recorded redeemable non-controlling interest of $17 million relating to the fair value of the portion of CPH AB does not own. During 2015, AB purchased additional shares of CPH, bringing AB's ownership interest to 85.0% as of December 31, 2015. On December 12, 2013, AB acquired W.P. Stewart & Co., Ltd. ("WPS"), an equity investment manager that, as of December 31, 2015, managed approximately $2,000 million in U.S., Global and EAFE concentrated growth equity strategies for clients, primarily in the U.S. and Europe. On the acquisition date, AB made a cash payment of $12 per share for the approximate 4.9 million WPS shares outstanding and issued to WPS shareholders transferable Contingent Value Rights ("CVRs") entitling the holders to an additional $4 per share if the assets under management in the acquired WPS investment services exceed $5,000 million on or before the third anniversary of the acquisition date. The excess of the purchase price over the fair value of identifiable assets acquired resulted in the recognition of $32 million of goodwill. AB also recorded $8 million of indefinite-lived intangible assets relating to the acquired fund's investment contracts and $14 million of definite-lived intangible assets relating to separately managed account relationships. As of the acquisition date, AB recorded a contingent consideration payable of $17 million in regard to the CVRs. Capitalized Software Capitalized software, net of accumulated amortization, amounted to $157 million and $163 million at December 31, 2015 and 2014, respectively. Amortization of capitalized software in 2015, 2014 and 2013 were $55 million, $50 million and $119 million (including $45 million of accelerated amortization), respectively. 5) CLOSED BLOCK Summarized financial information for the AXA Equitable Closed Block is as follows:
DECEMBER 31, ----------------- 2015 2014 -------- -------- (IN MILLIONS) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders' account balances and other................. $ 7,363 $ 7,537 Policyholder dividend obligation............. 81 201 Other liabilities............................ 100 117 -------- -------- Total Closed Block liabilities............... 7,544 7,855 -------- -------- ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $4,426 and $4,829).................................... 4,599 5,143 Mortgage loans on real estate................ 1,575 1,407 Policy loans................................. 881 912 Cash and other invested assets............... 49 14 Other assets................................. 258 176 -------- -------- Total assets designated to the Closed Block.. 7,362 7,652 -------- -------- Excess of Closed Block liabilities over assets designated to the Closed Block...... 182 203 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of deferred income tax (expense) benefit of $(36) and $(43) and policyholder dividend obligation of $(81) and $(201)................................. 67 80 -------- -------- Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities... $ 249 $ 283 ======== ========
F-39 AXA Equitable's Closed Block revenues and expenses follow:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) REVENUES: Premiums and other income.................... $ 262 $ 273 $ 286 Investment income (loss)..................... 368 378 402 Net investment gains (losses)................ 2 (4) (11) ------ ------ ------ Total revenues............................... 632 647 677 ------ ------ ------ BENEFITS AND OTHER DEDUCTIONS: Policyholders' benefits and dividends........ 576 597 637 Other operating costs and expenses........... 4 4 1 ------ ------ ------ Total benefits and other deductions.......... 580 601 638 ------ ------ ------ Net revenues, before income taxes............ 52 46 39 Income tax (expense) benefit................. (18) (16) (14) ------ ------ ------ Net Revenues (Losses)........................ $ 34 $ 30 $ 25 ====== ====== ======
A reconciliation of AXA Equitable's policyholder dividend obligation follows:
DECEMBER 31, -------------- 2015 2014 ------ ------ (IN MILLIONS) Balances, beginning of year.................. $ 201 $ 128 Unrealized investment gains (losses)......... (120) 73 ------ ------ Balances, End of year........................ $ 81 $ 201 ====== ======
6) CONTRACTHOLDER BONUS INTEREST CREDITS Changes in the deferred asset for contractholder bonus interest credits are as follows:
DECEMBER 31, -------------- 2015 2014 ------ ------ (IN MILLIONS) Balance, beginning of year................... $ 383 $ 518 Contractholder bonus interest credits deferred................................... 17 15 Balance true-up.............................. 174 -- Amortization charged to income............... (40) (150) ------ ------ Balance, End of Year......................... $ 534 $ 383 ====== ======
F-40 7) FAIR VALUE DISCLOSURES Assets and liabilities measured at fair value on a recurring basis are summarized below. At December 31, 2015 and 2014, 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. FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2015
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------- --------- --------- ---------- (IN MILLIONS) ASSETS Investments: Fixed maturities, available-for-sale: Corporate.................................. $ -- $ 19,882 $ 420 $ 20,302 U.S. Treasury, government and agency....... -- 8,775 -- 8,775 States and political subdivisions.......... -- 459 45 504 Foreign governments........................ -- 414 1 415 Commercial mortgage-backed................. -- 30 503 533 Residential mortgage-backed/(1)/........... -- 640 -- 640 Asset-backed/(2)/.......................... -- 37 40 77 Redeemable preferred stock................. 258 389 -- 647 ---------- --------- --------- ---------- Subtotal................................. 258 30,626 1,009 31,893 ---------- --------- --------- ---------- Other equity investments.................... 97 -- 49 146 Trading securities.......................... 654 6,151 -- 6,805 Other invested assets: Short-term investments..................... -- 369 -- 369 Swaps...................................... -- 230 -- 230 Credit Default Swaps....................... -- (22) -- (22) Futures.................................... (1) -- -- (1) Options.................................... -- 390 -- 390 Floors..................................... -- 61 -- 61 Currency Contracts......................... -- 1 -- 1 ---------- --------- --------- ---------- Subtotal................................. (1) 1,029 -- 1,028 ---------- --------- --------- ---------- Cash equivalents.............................. 2,150 -- -- 2,150 Segregated securities......................... -- 565 -- 565 GMIB reinsurance contracts.................... -- -- 10,570 10,570 Separate Accounts' assets..................... 104,058 2,964 313 107,335 ---------- --------- --------- ---------- Total Assets............................... $ 107,216 $ 41,335 $ 11,941 $ 160,492 ========== ========= ========= ========== LIABILITIES GWBL and other features' liability............ $ -- $ -- $ 184 $ 184 SCS, SIO, MSO and IUL indexed features' liability................................... -- 310 -- 310 Contingent payment arrangements............... -- -- 31 31 ---------- --------- --------- ---------- Total Liabilities.......................... $ -- $ 310 $ 215 $ 525 ========== ========= ========= ==========
/(1)/Includes publicly traded agency pass-through securities and collateralized obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. F-41 Fair Value Measurements at December 31, 2014
Level 1 Level 2 Level 3 Total ---------- --------- --------- ---------- (In Millions) ASSETS Investments: Fixed maturities, available-for-sale: Corporate.................................. $ -- $ 21,840 $ 380 $ 22,220 U.S. Treasury, government and agency....... -- 7,331 -- 7,331 States and political subdivisions.......... -- 472 47 519 Foreign governments........................ -- 446 -- 446 Commercial mortgage-backed................. -- 20 715 735 Residential mortgage-backed/(1)/........... -- 793 2 795 Asset-backed/(2)/.......................... -- 46 53 99 Redeemable preferred stock................. 254 635 -- 889 ---------- --------- --------- ---------- Subtotal................................. 254 31,583 1,197 33,034 ---------- --------- --------- ---------- Other equity investments.................... 217 -- 61 278 Trading securities.......................... 710 4,433 -- 5,143 Other invested assets: Short-term investments..................... -- 103 -- 103 Swaps...................................... -- 597 -- 597 Credit Default Swaps....................... -- (18) -- (18) Futures.................................... (2) -- -- (2) Options.................................... -- 473 -- 473 Floors..................................... -- 120 -- 120 Currency Contracts......................... -- 1 -- 1 Swaptions.................................. -- 72 -- 72 ---------- --------- --------- ---------- Subtotal................................. (2) 1,348 -- 1,346 ---------- --------- --------- ---------- Cash equivalents.............................. 2,725 -- -- 2,725 Segregated securities......................... -- 476 -- 476 GMIB reinsurance contracts.................... -- -- 10,711 10,711 Separate Accounts' assets..................... 107,539 3,072 260 110,871 ---------- --------- --------- ---------- Total Assets............................... $ 111,443 $ 40,912 $ 12,229 $ 164,584 ========== ========= ========= ========== LIABILITIES GWBL and other features' liability............ $ -- $ -- $ 128 $ 128 SCS, SIO, MSO and IUL indexed features' liability................................... -- 380 -- 380 Contingent payment arrangements............... -- -- 42 42 ---------- --------- --------- ---------- Total Liabilities.......................... $ -- $ 380 $ 170 $ 550 ========== ========= ========= ==========
/(1)/Includes publicly traded agency pass-through securities and collateralized obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. At December 31, 2015 and 2014, respectively, the fair value of public fixed maturities is approximately $24,216 million and $24,779 million or approximately 16.2% and 16.2% of the Company's total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts and segregated securities measured at fair value on a recurring basis). The fair values of the Company's public fixed maturity securities 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 maturity securities 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. F-42 At December 31, 2015 and 2014, respectively, the fair value of private fixed maturities is approximately $7,677 million and $8,255 million or approximately 5.1% and 5.4% of the Company's total assets measured at fair value on a recurring basis. The fair values of some 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. As disclosed in Note 3, at December 31, 2015 and 2014, respectively, the net fair value of freestanding derivative positions is approximately $659 million and $1,243 million or approximately 64.1% and 92.3% of Other invested assets measured at fair value on a recurring basis. The fair values of the Company's derivative positions 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 Over-The-Counter ("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. At December 31, 2015 and 2014, respectively, investments classified as Level 1 comprise approximately 71.8% and 72.7% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts 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. At December 31, 2015 and 2014, respectively, investments classified as Level 2 comprise approximately 27.3% and 26.4% of assets 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 by AB 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. At December 31, 2015 and 2014, respectively, approximately $673 million and $821 million of 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. The Company's SCS and EQUI-VEST variable annuity products, the IUL product, 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, or 5 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 F-43 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 prices obtained from independent valuation service providers. At December 31, 2015 and 2014, respectively, investments classified as Level 3 comprise approximately 0.9% and 1.0% of assets measured at fair value on a recurring basis and primarily include commercial mortgage-backed securities ("CMBS") and 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 at December 31, 2015 and 2014, respectively, were approximately $119 million and $135 million of 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, approximately $543 million and $770 million of mortgage- and asset-backed securities, including CMBS, are classified as Level 3 at December 31, 2015 and 2014, respectively. The Company utilizes prices obtained from an independent valuation service vendor to measure fair value of CMBS securities. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. 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 asset which is accounted for as derivative contracts. The GMIB reinsurance contract asset's fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while the GIB and GWBL and other features related liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins, attributable to the GIB and GWBL and other features over a range of market-consistent economic scenarios. The valuations of both the GMIB reinsurance contract asset and GIB and GWBL and other 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 GIB and GWBL and other features' liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve, adjusted for non-performance risk, is made to the resulting fair values of the GMIB reinsurance contract asset to reflect change in the claims-paying ratings of counterparties to the reinsurance treaties. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $123 million and $147 million at December 31, 2015 and 2014, respectively, to recognize incremental counterparty non-performance risk. The unadjusted swap curve was determined to reflect a level of general swap market counterparty risk; therefore, no adjustment was made for purpose of determining the fair value of the GIB and GWBL and other features' liability embedded derivative at December 31, 2015. Equity and fixed income volatilities were modeled to reflect the current market volatility. In second quarter 2014, the Company refined the fair value calculation of the GMIB reinsurance contract asset and GWBL, GIB and GMAB liabilities, utilizing scenarios that explicitly reflect risk free bond and equity components separately (previously aggregated and including counterparty risk premium embedded in swap rates) and stochastic interest rates for projecting and discounting cash flows (previously a single yield curve). The net impacts of these refinements were a $510 million increase to the GMIB reinsurance contract asset and a $37 million increase in the GWBL, GIB and GMAB liability which are reported in the Company's consolidated statements of Earnings (Loss) as Increase (decrease) in the fair value of the reinsurance contract asset and Policyholders' benefits, respectively. The Company's Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2013 and 2014 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. In 2015, AFS fixed maturities with fair values of $125 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 $99 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.3% of total equity at December 31, 2015. In 2014, AFS fixed maturities with fair values of $82 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 $15 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.50% of total equity at December 31, 2014. F-44 The table below presents a reconciliation for all Level 3 assets and liabilities at December 31, 2015 and 2014, respectively. LEVEL 3 INSTRUMENTS FAIR VALUE MEASUREMENTS
STATE AND POLITICAL COMMERCIAL RESIDENTIAL SUB- FOREIGN MORTGAGE- MORTGAGE- ASSET- CORPORATE DIVISIONS GOVTS BACKED BACKED BACKED ------------ ------------- --------- ---------- --------------- --------- (IN MILLIONS) BALANCE, JANUARY 1, 2015....................... $ 380 $ 47 $ -- $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 3 -- -- 1 -- -- Investment gains (losses), net............ 2 -- -- (38) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... 5 -- -- (37) -- -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. (25) (1) -- 64 -- (4) Purchases/(3)/................................. 60 -- 1 -- -- -- Sales/(4)/..................................... (38) (1) -- (175) (2) (9) Transfers into Level 3/(1)/.................... 99 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (61) -- -- (64) -- -- ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2015..................... $ 420 $ 45 $ 1 $ 503 $ -- $ 40 ============ ============= ========= ========== =============== ========= BALANCE, JANUARY 1, 2014....................... $ 291 $ 46 $ -- $ 700 $ 4 $ 83 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 2 -- -- 2 -- -- Investment gains (losses), net............ 3 -- -- (89) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... $ 5 $ -- $ -- $ (87) $ -- $ -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. 6 2 -- 135 -- 7 Purchases/(3)/................................. 162 -- -- -- -- -- Sales/(4)/..................................... (30) (1) -- (20) (2) (37) Transfers into Level 3/(1)/.................... 15 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (69) -- -- (13) -- -- ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2014..................... $ 380 $ 47 $ -- $ 715 $ 2 $ 53 ============ ============= ========= ========== =============== ========= BALANCE, JANUARY 1, 2013....................... $ 355 $ 50 $ 19 $ 900 $ 9 $ 113 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 2 -- -- -- -- -- Investment gains (losses), net............ 5 -- -- (68) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... 7 -- -- (68) -- -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. (1) (3) (2) 13 (1) 3 Purchases/(3)/................................. 70 -- -- 31 -- -- Sales/(4)/..................................... (150) (1) (17) (160) (4) (22) Transfers into Level 3/(1)/.................... 20 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (10) -- -- (16) -- (11) ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2013..................... $ 291 $ 46 $ -- $ 700 $ 4 $ 83 ============ ============= ========= ========== =============== =========
F-45
REDEEM- GWBL ABLE GMIB SEPARATE AND OTHER CONTINGENT PREFERRED OTHER EQUITY REINSURANCE ACCOUNTS FEATURES PAYMENT STOCK INVESTMENTS ASSET ASSETS LIABILITY ARRANGEMENT ---------- --------------- ----------- -------- ---------- ----------- (IN MILLIONS) BALANCE, JANUARY 1, 2015...................... $ -- $ 61 $ 10,711 $ 260 $ 128 42 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss)............... -- -- -- -- -- -- Investment gains (losses), net............. -- 5 -- 36 -- -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- (327) -- -- -- Policyholders' benefits.................... -- -- -- -- (130) -- ---------- --------------- ----------- -------- ---------- ---------- Subtotal................................. -- 5 (327) 36 (130) -- ---------- --------------- ----------- -------- ---------- ---------- Other comprehensive income (loss)........... -- 2 -- -- -- -- Purchases/(2)/................................ -- 1 228 26 186 -- Sales/(3)/.................................... -- (20) (42) (2) -- (11) Settlements/(4)/.............................. -- -- -- (5) -- -- Transfers into Level 3/(1)/................... -- -- -- -- -- -- Transfers out of Level 3/(1)/................. -- -- -- (2) -- -- ---------- --------------- ----------- -------- ---------- ---------- BALANCE, DECEMBER 31, 2015.................... $ -- $ 49 $ 10,570 $ 313 $ 184 31 ========== =============== =========== ======== ========== ========== BALANCE, JANUARY 1, 2014...................... $ 15 $ 52 $ 6,747 $ 237 $ -- 38 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss)............... -- 3 -- -- -- -- Investment gains (losses), net............. -- 1 -- 15 -- -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- 3,774 -- -- -- Policyholders' benefits.................... -- -- -- -- (8) -- ---------- --------------- ----------- -------- ---------- ---------- Subtotal................................. $ -- $ 4 $ 3,774 $ 15 $ (8) -- ---------- --------------- ----------- -------- ---------- ---------- Other comprehensive income(loss)............ -- -- -- -- -- -- Purchases/(2)/................................ -- 8 225 16 136 9 Sales/(3)/.................................... (15) (1) (35) (3) -- (5) Settlements/(4)/.............................. -- -- -- (5) -- -- Transfers into Level 3/(1)/................... -- -- -- -- -- -- Transfers out of Level 3/(1)/................. -- (2) -- -- -- -- ---------- --------------- ----------- -------- ---------- ---------- BALANCE, DECEMBER 31, 2014.................... $ -- $ 61 $ 10,711 $ 260 $ 128 42 ========== =============== =========== ======== ========== ==========
F-46
Redeem- GWBL able Other GMIB Separate and Other Preferred Other Equity Invested Reinsurance Accounts Features Stock Investments Assets Asset Assets Liability --------- ------------ --------- ------------- ---------- ---------- (In Millions) BALANCE, JANUARY 1, 2013...................... $ 15 $ 77 $ (2) $ 11,044 $ 224 $ 265 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net Investment Income (loss)............... 10 Investment gains (losses), net............. -- (7) -- -- 10 -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- -- (4,496) -- -- Policyholders' benefits.................... -- -- -- -- -- (351) --------- ------------ --------- ------------- ---------- ---------- Subtotal................................. -- 3 -- (4,496) 10 (351) --------- ------------ --------- ------------- ---------- ---------- Other comprehensive income (loss)........... -- -- 2 -- (1) -- Purchases/(2)/................................ -- 4 -- 237 6 86 Sales/(3)/.................................... -- (3) -- (38) (3) -- Settlements/(4)/.............................. -- -- -- -- (2) -- Transfers into Level 3/(1)/................... -- -- -- -- 3 -- Transfers out of Level 3/(1)/................. -- (29) -- -- -- -- --------- ------------ --------- ------------- ---------- ---------- BALANCE, DECEMBER 31, 2013.................... $ 15 $ 52 $ -- $ 6,747 $ 237 $ -- ========= ============ ========= ============= ========== ==========
/(1)/Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. /(2)/For the GMIB reinsurance contract asset and GWBL and other features reserves, represents premiums. /(3)/For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GWBL and other features reserves represents benefits paid. /(4)/For contingent payment arrangements, it represents payments under the arrangement. F-47 The table below details changes in unrealized gains (losses) for 2015 and 2014 by category for Level 3 assets and liabilities still held at December 31, 2015 and 2014, respectively:
EARNINGS (LOSS) ----------------------------------------------- INCREASE NET (DECREASE) IN THE INVESTMENT INVESTMENT FAIR VALUE OF POLICY- INCOME GAINS REINSURANCE HOLDERS' (LOSS) (LOSSES), NET CONTRACTS OCI BENEFITS ---------- --------------- -------------------- ------------ ---------- (IN MILLIONS) LEVEL 3 INSTRUMENTS FULL YEAR 2015 STILL HELD AT DECEMBER 31, 2015 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate................................. $ -- $ -- $ -- $ (25) $ -- State and political subdivisions.......... -- -- -- (2) -- Commercial mortgage-backed................ -- -- -- 61 -- Asset-backed.............................. -- -- -- (4) -- Other fixed maturities, available-for- sale.................................... -- -- -- -- -- ---------- --------------- -------------------- ------------ ---------- Subtotal................................ $ -- $ -- $ -- $ 30 $ -- ---------- --------------- -------------------- ------------ ---------- GMIB reinsurance contracts.................. -- -- (141) -- -- Separate Accounts' assets................... -- 36 -- -- -- GWBL and other features' liability.......... -- -- -- -- 184 ---------- --------------- -------------------- ------------ ---------- Total................................... $ -- $ 36 $ (141) $ 30 $ 184 ========== =============== ==================== ============ ========== Level 3 Instruments Full Year 2014 Still Held at December 31, 2014 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate................................. $ -- $ -- $ -- $ 6 $ -- State and political subdivisions.......... -- -- -- 2 -- Commercial mortgage-backed................ -- -- -- 112 -- Asset-backed.............................. -- -- -- 7 -- Other fixed maturities, available-for- sale.................................... -- -- -- -- -- ---------- --------------- -------------------- ------------ ---------- Subtotal................................ $ -- $ -- $ -- $ 127 $ -- ---------- --------------- -------------------- ------------ ---------- GMIB reinsurance contracts.................. -- -- 3,964 -- -- Separate Accounts' assets................... -- 15 -- -- -- GWBL and other features' liability.......... -- -- -- -- 128 ---------- --------------- -------------------- ------------ ---------- Total................................... $ -- $ 15 $ 3,964 $ 127 $ 128 ========== =============== ==================== ============ ==========
F-48 The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2015 and 2014, respectively. QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS DECEMBER 31, 2015
FAIR VALUATION VALUE TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUT RANGE ------- ---------------------- ------------------------------ ----------------- (IN MILLIONS) ASSETS: Investments: Fixed maturities, available-for-sale: Corporate................... $ 61 Matrix pricing model Spread over the industry-specific benchmark yield curve 50 BPS - 565 BPS 154 Market comparable EBITDA multiples 7.8X - 19.1X companies Discount rate 7.0% - 12.6% Cash flow Multiples 14.0X - 16.5X --------------------------------------------------------------------------------------------------------------- Asset-backed................ 3 Matrix pricing model Spread over U.S. Treasury curve 30 BPS - 687 BPS --------------------------------------------------------------------------------------------------------------- Other equity investments....... 10 Market comparable Revenue multiple 2.5X - 4.8X companies Marketability Discount 30.0% --------------------------------------------------------------------------------------------------------------- Separate Accounts' assets...... 271 Third party appraisal Capitalization rate 4.9% Exit capitalization rate 5.9% Discount rate 6.7% 7 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product 280 BPS - 411 BPS rate 0.0% - 1.09% Discount factor 2.3% - 5.9% --------------------------------------------------------------------------------------------------------------- GMIB reinsurance contracts..... 10,570 Discounted cash flow Lapse Rates 0.6% - 5.7% Withdrawal rates 0.2% - 8.0% GMIB Utilization Rates 0.0% - 15% Non-performance risk 5 BPS - 18 BPS Volatility rates - Equity 9% - 35% --------------------------------------------------------------------------------------------------------------- LIABILITIES: GMWB/GWBL/(1)/................. 120 Discounted cash flow Lapse Rates 1.0% - 5.7% Withdrawal rates 0.0% - 7.0% Volatility rates - Equity 9% - 35% ---------------------------------------------------------------------------------------------------------------
/(1)/Excludes GMAB and GIB liabilities. F-49 Quantitative Information about Level 3 Fair Value Measurements December 31, 2014
Fair Valuation Value Technique Significant Unobservable Input Range ------- ---------------------- --------------------------------- ----------------- (In Millions) ASSETS: Investments: Fixed maturities, available-for-sale: Corporate.................. $ 75 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 BPS - 590 BPS 132 Market comparable companies Discount rate 11.2% - 15.2% ----------------------------------------------------------------------------------------------------------------- Asset-backed............... 5 Matrix pricing model Spread over U.S. Treasury curve 30 BPS - 687 BPS ----------------------------------------------------------------------------------------------------------------- Other equity investments...... 20 Market comparable Revenue multiple 2.0X - 3.5X companies Discount rate 18.0% Discount years 2 ----------------------------------------------------------------------------------------------------------------- Separate Accounts' assets..... 234 Third party appraisal Capitalization rate 5.2% Exit capitalization rate 6.2% Discount rate 7.1% 7 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product 238 BPS - 395 BPS rate 0.0% - 2.4% Discount factor 1.3% - 5.4% ----------------------------------------------------------------------------------------------------------------- GMIB reinsurance contracts.... 10,711 Discounted cash flow Lapse Rates 1.0% - 8.0% Withdrawal Rates 0.2% - 8.0% GMIB Utilization Rates 0.0% - 15.0% Non-performance risk 5 BPS - 16 BPS Volatility rates - Equity 9.0% - 34.0% ----------------------------------------------------------------------------------------------------------------- LIABILITIES: GMWB/GWBL /(1)/............... 107 Discounted cash flow Lapse Rates 1.0% - 8.0% Withdrawal Rates 0.0% - 7.0% Volatility rates - Equity 9.0% - 34.0% -----------------------------------------------------------------------------------------------------------------
/(1)/Excludes GMAB and GIB liabilities. Excluded from the tables above at December 31, 2015 and 2014, respectively, are approximately $865 million and $1,045 million Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. The fair value measurements of these Level 3 investments comprise approximately 63.1% and 68.8% of total assets classified as Level 3 and represent only 0.6% and 0.7% of total assets measured at fair value on a recurring basis at December 31, 2015 and 2014 respectively. These investments primarily consist of certain privately placed debt securities with limited trading activity, including commercial mortgage-, 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. Included in the tables above at December 31, 2015 and 2014, respectively, are approximately $215 million and $207 million fair value of privately placed, available-for-sale corporate debt securities classified as Level 3. The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique, representing approximately 51.2% and 54.4% of the total fair value of Level 3 securities in the corporate fixed maturities asset class. 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. F-50 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, 2015 and 2014, 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, 2015 and 2014, are approximately 7.5% and 9.4%, respectively, of the total fair value of these Level 3 securities that is 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. Significant increases (decreases) in spreads would result in significantly lower (higher) fair value measurements. Other equity investments classified as Level 3 primarily consist of private venture capital fund investments of AB for which fair values are adjusted to reflect expected exit values as evidenced by financing and sale transactions with third parties or when consideration of other factors, such as current company performance and market conditions, is determined by management to require valuation adjustment. Significant increase (decrease) in isolation in the underlying enterprise value to revenue multiple and enterprise value to R&D investment multiple, if applicable, would result in significantly higher (lower) fair value measurement. Significant increase (decrease) in the discount rate would result in a significantly lower (higher) fair value measurement. Significant increase (decrease) in isolation in the discount factor ascribed for lack of marketability and various risk factors would result in significantly lower (higher) fair value measurement. Changes in the discount factor generally are not correlated to changes in the value multiples. Also classified as Level 3 at December 31, 2015 and 2014, respectively, are approximately $32 million and $31 million private venture capital fund-of-fund investments of AB for which fair value is estimated using the capital account balances provided by the partnerships. The interests in these partnerships cannot be redeemed. As of December 31, 2015 and 2014, AB's aggregate unfunded commitments to these investments were approximately $3 million and $3 million, respectively. Separate Accounts' assets classified as Level 3 in the table at December 31, 2015 and 2014, primarily consist of a private real estate fund with a fair value of approximately $271 million and $234 million, a private equity investment with a fair value of approximately $2 million and $2 million and mortgage loans with fair value of approximately $5 million and $5 million, respectively. 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. A discounted cash flow approach is applied to determine the private equity investment for which the significant unobservable assumptions are the gross domestic product rate formula and a discount factor that takes into account various risks, including the illiquid nature of the investment. A significant increase (decrease) in the gross domestic product rate would have a directionally inverse effect on the fair value of the security. 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. Treasuries 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. The remaining Separate Accounts' investments classified as Level 3 excluded from the table consist of mortgage- and asset-backed securities with fair values of approximately $28 million and $7 million at December 31, 2015 and $11 million and $8 million at December 31, 2014, respectively. 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 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 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. 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. F-51 The three AB acquisition-related contingent consideration liabilities (with a combined fair value of $31 million and $42 million as of December 31, 2015 and 2014, respectively) are currently valued using projected AUM growth rates with a weighted average of 46.0%, revenue growth rates with a weighted average of 43.0%, and discount rates of 3.0% (using a cost of debt assumption). During the fourth quarters of 2015 and 2014, AB recorded changes in estimates of the contingent consideration payable relating to recent acquisitions of $7 million and $4 million, respectively. The carrying values and fair values at December 31, 2015 and 2014 for financial instruments not otherwise disclosed in Notes 3 and 12 are presented in the table below. 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.
FAIR VALUE CARRYING ---------------------------------- VALUE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL -------- ------- -------- -------- -------- (IN MILLIONS) December 31, 2015: MORTGAGE LOANS ON REAL ESTATE................ $ 7,171 $ -- $ -- $ 7,257 $ 7,257 LOANS TO AFFILIATES.......................... 1,087 -- 795 390 1,185 POLICYHOLDERS LIABILITIES: INVESTMENT CONTRACTS.................................. 7,825 -- -- 7,930 7,930 POLICY LOANS................................. 3,393 -- -- 4,343 4,343 SHORT-TERM DEBT.............................. 584 -- 584 -- 584 SEPARATE ACCOUNT LIABILITIES................. 5,124 -- -- 5,124 5,124 December 31, 2014: Mortgage loans on real estate................ $ 6,463 $ -- $ -- $ 6,617 6,617 Loans to affiliates.......................... 1,087 -- 1,203 -- 1,203 Policyholders liabilities: Investment contracts.................................. 2,799 -- -- 2,941 2,941 Policy loans................................. 3,408 -- -- 4,406 4,406 Short-term debt.............................. 688 -- 700 -- 700 Separate Account Liabilities................. 5,019 -- -- 5,019 5,019
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 from taking the appropriate U.S. Treasury rate with a like term to the remaining term of the loan and adding a spread reflective of the risk premium associated with the specific loan. 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. The Company's short-term debt primarily includes commercial paper issued by AB with short-term maturities and book value approximates fair value. The fair values of the Company's borrowing and lending arrangements with AXA affiliated entities are determined from quotations provided by brokers knowledgeable about these securities and internally assessed for reasonableness, 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. 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 Policyholder's 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 FHLBNY funding agreements and escrow shield plus product reserves are held at book value. 8) GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES A) 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); F-52 . 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. The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the General Account in future policy benefits and other policyholders' liabilities:
GMDB GMIB TOTAL -------- -------- -------- (IN MILLIONS) Balance at January 1, 2013................... $ 1,772 $ 4,561 $ 6,333 Paid guarantee benefits.................... (237) (325) (562) Other changes in reserve................... 91 (33) 58 -------- -------- -------- Balance at December 31, 2013................. 1,626 4,203 5,829 Paid guarantee benefits.................... (231) (220) (451) Other changes in reserve................... 334 1,661 1,995 -------- -------- -------- Balance at December 31, 2014................. 1,729 5,644 7,373 Paid guarantee benefits.................... (313) (89) (402) Other changes in reserve................... 1,570 (258) 1,312 -------- -------- -------- Balance at December 31, 2015................. $ 2,986 $ 5,297 $ 8,283 ======== ======== ========
Related GMDB reinsurance ceded amounts were:
GMDB ------------- (IN MILLIONS) Balance at January 1, 2013...................................... $ 844 Paid guarantee benefits....................................... (109) Other changes in reserve...................................... 56 ------------- Balance at December 31, 2013.................................... 791 Paid guarantee benefits....................................... (114) Other changes in reserve...................................... 155 ------------- Balance at December 31, 2014.................................... 832 Paid guarantee benefits....................................... (148) Other changes in reserve...................................... 746 ------------- Balance at December 31, 2015.................................... $ 1,430 =============
F-53 The GMIB reinsurance contracts are considered derivatives and are reported at fair value. The December 31, 2015 values for variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds 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 guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive:
RETURN OF PREMIUM RATCHET ROLL-UP COMBO TOTAL --------- -------- --------- --------- ------- (DOLLARS IN MILLIONS) GMDB: ----- Account values invested in: General Account............................ $ 13,037 $ 132 $ 78 $ 244 $13,491 Separate Accounts.......................... $ 38,438 $ 8,570 $ 3,472 $ 34,160 $84,640 Net amount at risk, gross................... $ 397 $ 422 $ 2,389 $ 15,872 $19,080 Net amount at risk, net of amounts reinsured.................................. $ 397 $ 302 $ 1,616 $ 6,743 $ 9,058 Average attained age of contractholders..... 51.1 65.4 71.7 66.4 55.0 Percentage of contractholders over age 70... 9.0% 35.4% 58.1% 38.2% 16.6% Range of contractually specified interest rates...................................... N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: ----- Account values invested in: General Account............................ N/A N/A $ 41 $ 351 $ 392 Separate Accounts.......................... N/A N/A $ 15,467 $ 41,092 $56,559 Net amount at risk, gross................... N/A N/A $ 1,179 $ 6,232 $ 7,411 Net amount at risk, net of amounts reinsured.................................. N/A N/A $ 351 $ 1,561 $ 1,912 Weighted average years remaining until annuitization.............................. N/A N/A 1.4 1.9 1.9 Range of contractually specified interest rates...................................... N/A N/A 3%-6% 3%-6.5% 3%-6.5%
The liability for SCS, SIO, MSO and IUL indexed features and the GIB and GWBL and other features, not included above, was $494 million and $508 million at December 31, 2015 and 2014, respectively, which are accounted for as embedded derivatives. The liability for GIB, GWBL and other features reflects the present value of expected future payments (benefits) less the fees attributable to these features over a range of market consistent economic scenarios. The liability for SCS, SIO, MSO and IUL reflects the present value of expected future payments assuming the segments are held to maturity. In-force management The Company continues to proactively manage its in-force business. For example: . GMIB/GWBL LUMP SUM OPTION. In 2015, the Company added a lump sum option to certain contracts with GMIB and GWBL benefits. Prior to the addition of this option, if an eligible contractholder's adjusted account value fell to zero, the contractholder would automatically receive a stream of payments over his or her lifetime. With this option, eligible contractholders now have the ability to receive a percentage of the present value of those lifetime payments in a one-time lump sum payment. . GMDB/GMIB BUYBACK. Beginning in 2012, the Company initiated several programs to purchase from certain contractholders the GMDB and GMIB riders contained in their Accumulator(R) contracts. Most recently in 2015, the Company initiated a program to give contractholders an option to elect a full buyout of their rider or a new partial (50%) buyout of their rider. The Company believes that the lump sum option and buyback programs are mutually beneficial to both the Company and contractholders who no longer need or want the GMDB, GMIB or GWBL rider. As a result of the 2015 buyback program, the Company is assuming a change in the short-term behavior of remaining contractholders, as those who do not accept are assumed to be less likely to surrender their contract over the short term. The Company is also incorporating the expectation that some contractholders will utilize the new lump sum option product feature. F-54 Due to the difference in accounting recognition between the GMDB/GMIB and GWBL reserves and the fair value of the GMIB reinsurance contract asset, the net impact of the addition of the lump sum option to certain contracts and the 2015 buyback offer is an after-tax loss of $247 million, which was recognized in 2015. The net impact of a 2013 buyback that completed in 2014 was an after-tax loss of $29 million and $20 million to Net earnings in 2014 and 2013, respectively. For additional information, see "Accounting for VA Guarantee Features" in Note 2. B) Separate Account Investments by Investment Category Underlying 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 benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
DECEMBER 31, ------------------ 2015 2014 -------- --------- (IN MILLIONS) GMDB: ----- Equity....................................... $ 66,230 $ 67,108 Fixed income................................. 2,686 3,031 Balanced..................................... 15,350 17,505 Other........................................ 374 404 -------- --------- Total........................................ $ 84,640 $ 88,048 ======== ========= GMIB: ----- Equity....................................... $ 43,874 $ 43,850 Fixed income................................. 1,819 1,988 Balanced..................................... 10,696 12,060 Other........................................ 170 186 -------- --------- Total........................................ $ 56,559 $ 58,084 ======== =========
C) Hedging Programs for GMDB, GMIB, GIB and GWBL and Other Features Beginning in 2003, AXA Equitable 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(R) 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 reinsured. At December 31, 2015, the total account value and net amount at risk of the hedged variable annuity contracts were $50,333 million and $7,841 million, respectively, with the GMDB feature and $32,740 million and $1,560 million, respectively, with the GMIB and GIB feature. 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 earnings (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - No Lapse Guarantee The no lapse guarantee 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 no lapse guarantee remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. F-55 The following table summarizes the no lapse guarantee liabilities, reflected in the General Account in Future policy benefits and other policyholders' liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets.
DIRECT REINSURANCE LIABILITY CEDED NET --------- ----------- -------- (IN MILLIONS) Balance at January 1, 2013................... $ 556 $ (310) $ 246 Other changes in reserves.................. 273 (131) 142 --------- ----------- -------- Balance at December 31, 2013................. 829 (441) 388 Other changes in reserves.................. 135 (114) 21 --------- ----------- -------- Balance at December 31, 2014................. 964 (555) 409 Other changes in reserves.................. 120 16 136 --------- ----------- -------- Balance at December 31, 2015................. $ 1,084 $ (539) $ 545 ========= =========== ========
9) 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 Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains up to $25 million on each single-life policy and$30 million on each second-to-die policy, with the excess 100% reinsured. The Company also reinsures the entire risk on certain substandard underwriting risks and in certain other cases. At December 31, 2015, the Company had reinsured with non-affiliates and affiliates in the aggregate approximately 4.1% and 48.4%, 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 19.6% and 54.6%, respectively, of its current liability exposure resulting from the GMIB feature. See Note 8. Based on management's estimates of future contract cash flows and experience, the fair values of the GMIB reinsurance contracts, considered derivatives at December 31, 2015 and 2014 were $10,570 million and $10,711 million, respectively. The increases (decreases) in fair value were $(141) million, $3,964 million and $(4,297) million for 2015, 2014 and 2013, respectively. At December 31, 2015 and 2014, respectively, third-party reinsurance recoverables related to insurance contracts amounted to $2,458 million and $2,367 million, of which $2,005 million and $2,069 million related to three specific reinsurers, which were Zurich Insurance Company Ltd. (AA -- rating), Paul Revere Life Insurance Company (A rating) and Connecticut General Life Insurance Company (AA- rating). At December 31, 2015 and 2014, affiliated reinsurance recoverables related to insurance contracts amounted to $2,009 million and $1,684 million, respectively. A contingent liability exists with respect to reinsurance should the reinsurers be unable to meet their obligations. Reinsurance payables related to insurance contracts were $131 million and $74 million, at December 31, 2015 and 2014, respectively. The Company cedes substantially all of its group life and health business to a third party insurer. Insurance liabilities ceded totaled $92 million and $110 million at December 31, 2015 and 2014, 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. The Company has also assumed accident, health, annuity, aviation and space risks by participating in or reinsuring various reinsurance pools and arrangements. In addition to the sale of insurance products, AXA Equitable currently acts as a professional retrocessionaire by assuming life reinsurance from professional reinsurers. Reinsurance assumed reserves at December 31, 2015 and 2014 were $744 million and $757 million, respectively. For affiliated reinsurance agreements see Note 11 "Related Party Transactions." F-56 The following table summarizes the effect of reinsurance:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) Direct premiums.............................. $ 820 $ 844 $ 848 Reinsurance assumed.......................... 207 211 213 Reinsurance ceded............................ (539) (541) (565) ------ ------ ------ Premiums..................................... $ 488 $ 514 $ 496 ====== ====== ====== Universal Life and Investment-type Product Policy Fee Income Ceded.................... $ 279 $ 270 $ 247 ====== ====== ====== Policyholders' Benefits Ceded................ $ 527 $ 726 $ 703 ====== ====== ======
Individual Disability Income and Major Medical Claim reserves and associated liabilities net of reinsurance ceded for individual DI and major medical policies were $80 million and $78 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, respectively, $1,652 million and $1,714 million of DI reserves and associated liabilities were ceded through indemnity reinsurance agreements with a singular reinsurance group, rated AA-. Net incurred benefits (benefits paid plus changes in claim reserves) and benefits paid for individual DI and major medical policies are summarized below:
2015 2014 2013 ----- ----- ----- (IN MILLIONS) Incurred benefits related to current year.... $ 11 $ 14 $ 15 Incurred benefits related to prior years..... 22 16 10 ----- ----- ----- Total Incurred Benefits...................... $ 33 $ 30 $ 25 ===== ===== ===== Benefits paid related to current year........ $ 18 $ 20 $ 19 Benefits paid related to prior years......... 13 11 13 ----- ----- ----- Total Benefits Paid.......................... $ 31 $ 31 $ 32 ===== ===== =====
10)SHORT-TERM DEBT Short-term debt consists of the following:
DECEMBER 31, ------------- 2015 2014 ------ ------ (IN MILLIONS) Short-term debt: AB: Commercial paper (with interest rates of 0.5% and 0.3%)............................ $ 584 $ 489 AXA Equitable: Surplus Notes, 7.7%, due 2015.............. -- 200 ------ ------ Total short-term debt........................ $ 584 $ 689 ====== ======
Short-term Debt AB has a $1,000 million committed, unsecured senior revolving credit facility ("AB Credit Facility") with a group of commercial banks and other lenders. The AB Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $250 million, any such increase being subject to the consent of the affected lenders. The AB Credit Facility is available for AB's and SCB LLC's business purposes, including the support of AB's $1,000 million commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, among other things, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2015, AB and SCB LLC were in compliance with these covenants. The AB Credit Facility also includes customary events of F-57 default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender's commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility automatically would become immediately due and payable, and the lender's commitments automatically would terminate. On October 22, 2014, as part of an amendment and restatement, the maturity date of the AB Credit Facility was extended from January 17, 2017 to October 22, 2019. There were no other significant changes included in the amendment. As of December 31, 2015 and 2014, AB and SCB LLC had no amounts outstanding under the AB Credit Facility. During 2015 and 2014, AB and SCB LLC did not draw upon the AB Credit Facility. In addition, SCB LLC has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit SCB LLC to borrow up to an aggregate of approximately $200 million, with AB named as an additional borrower, while one has no stated limit. As of December 31, 2015 and 2014, SCB LLC had no bank loans outstanding. 11)RELATED PARTY TRANSACTIONS Loans to Affiliates In September 2007, AXA issued a $650 million 5.4% Senior Unsecured Note to AXA Equitable. The note pays interest semi-annually and was scheduled to mature on September 30, 2012. In March 2011, the maturity date of the note was extended to December 30, 2020 and the interest rate was increased to 5.7%. In June 2009, AXA Equitable sold real estate property valued at $1,100 million to a non-insurance subsidiary of AXA Financial in exchange for $700 million in cash and $400 million in 8.0% ten year term mortgage notes on the property reported in Loans to affiliates in the consolidated balance sheets. In November 2014, this loan was refinanced and a new $382 million, seven year term loan with an interest rate of 4.0% was issued. In third quarter 2013, AXA Equitable purchased, at fair value, AXA Arizona's $50 million note receivable from AXA for $56 million. This note pays interest semi-annually at an interest rate of 5.4% and matures on December 15, 2020. Loans from Affiliates In 2005, AXA Equitable issued a surplus note to AXA Financial in the amount of $325 million with an interest rate of 6.0% and was scheduled to mature on December 1, 2035. In December 2014, AXA Equitable repaid this note at par value plus interest accrued of $1 million to AXA Financial. In December 2008, AXA Equitable issued a $500 million callable 7.1% surplus note to AXA Financial. The note pays interest semi-annually and was scheduled to mature on December 1, 2018. In June 2014, AXA Equitable repaid this note at par value plus interest accrued of $3 million to AXA Financial. Other Transactions Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable Qualified Pension Plan ("AXA Equitable QP") was transferred from AXA Equitable to AXA Financial under terms of an Assumption Agreement. For additional information regarding this transaction see Note 12. In third quarter 2013, AXA Equitable purchased, at fair value, MONY Life Insurance Company's ("MONY Life"), equity interest in limited partnerships for $53 million and MONY Life's CMBS portfolio for $31 million. MONY Life was a subsidiary of AXA Financial through October 1, 2013. The Company reimburses AXA Financial for expenses related to certain employee compensation and benefits. Such reimbursement is based on the cost to AXA Financial of the benefits provided which totaled $20 million, $29 million and $40 million, respectively, for 2015, 2014 and 2013. In 2015, 2014 and 2013, respectively, the Company paid AXA Distribution Holding Corporation ("AXA Distribution") and its subsidiaries $603 million, $616 million and $621 million of commissions and fees for sales of insurance products. The Company charged AXA Distribution's subsidiaries $321 million, $325 million and $345 million, respectively, for their applicable share of operating expenses in 2015, 2014 and 2013, pursuant to Service agreement. F-58 AXA Distributors received $13 million, $2 million and $2 million in commissions and fees for the sale of MONY Life Insurance Company of America ("MONY America") insurance products in 2015, 2014 and 2013, respectively. AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Company has implemented capital management actions to mitigate statutory reserve strain for certain level term and UL policies with secondary guarantees and GMDB and GMIB riders on the Accumulator(R) products through reinsurance transactions with AXA RE Arizona Company ("AXA Arizona"), a wholly-owned subsidiary of AXA Financial. The Company currently reinsures to AXA 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 Arizona also 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. The reinsurance arrangements with AXA Arizona provide important capital management benefits to AXA Equitable. At December 31, 2015 and 2014, the Company's GMIB reinsurance asset with AXA Arizona had carrying values of $8,741 million and $8,560 million, respectively, and is reported in Guaranteed minimum income benefit reinsurance asset, at fair value in the consolidated balance sheets. Ceded premiums in 2015, 2014 and 2013 related to the UL and no lapse guarantee riders totaled approximately $453 million, $453 million and $474 million, respectively. Ceded claims paid in 2015, 2014 and 2013 were $54 million, $83 million and $70 million, respectively. AXA Equitable receives statutory reserve credits for reinsurance treaties with AXA Arizona to the extent that AXA Arizona holds assets in an irrevocable trust (the "Trust") ($9,099 million at December 31, 2015) and/or letters of credit ($3,205 million at December 31, 2015). These letters of credit are guaranteed by AXA. Under the reinsurance transactions, AXA Arizona is permitted to transfer assets from the Trust under certain circumstances. The level of statutory reserves held by AXA Arizona 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 AXA Arizona's liquidity. Various AXA affiliates, including AXA Equitable, cede a portion of their 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 Life Insurance Company Ltd (Japan), an AXA subsidiary, cedes a portion of their annuity business to AXA Equitable. Various AXA Financial affiliates cede a portion of their life business through excess of retention treaties to AXA Equitable on a yearly renewal term basis. Premiums earned from the above mentioned affiliated reinsurance transactions in 2015, 2014 and 2013 totaled approximately $21 million, $22 million and $21 million, respectively. Claims and expenses paid in 2015, 2014 and 2013 were $5 million, $10 million and $10 million, respectively. In April 2015, AXA entered into a mortality catastrophe bond based on general population mortality in each of France, Japan and the U.S. The purpose of the bond is to protect AXA against a severe worldwide pandemic. AXA Equitable entered into a stop loss reinsurance agreement with AXA Global Life to protect AXA Equitable with respect to a deterioration in its claim experience following the occurrence of an extreme mortality event. The reinsurance agreement was approved by the NYDFS with a retroactive effective date of January 1, 2015 and is due to expire on December 31, 2024. Premiums and expenses associated with the reinsurance agreement were $4 million in 2015. AXA Equitable provides personnel services, employee benefits, facilities, supplies and equipment under service agreements with certain AXA Financial subsidiaries and affiliates to conduct their business. The associated costs related to the service agreement are allocated based on methods that management believes are reasonable, including a review of the nature of such costs and activities performed to support each company. As a result of such allocations, AXA Equitable was reimbursed $94 million, $75 million and $148 million for 2015, 2014 and 2013, respectively. Both AXA Equitable and AB, along with other AXA affiliates, participate in certain intercompany cost sharing and service agreements including technology and professional development arrangements. AXA Equitable and AB incurred expenses under such agreements of approximately $164 million, $173 million and $165 million in 2015, 2014 and 2013, respectively. Expense reimbursements by AXA and AXA affiliates to AXA Equitable under such agreements totaled approximately $14 million, $15 million and $24 million in 2015, 2014 and 2013, respectively. The net receivable (payable) related to these contracts was approximately $1 million and $3 million at December 31, 2015 and 2014, respectively. F-59 During 2015, 2014 and 2013 AXA Equitable FMG earned $707 million, $711 million and $690 million, respectively of Investment management and administrative fees from EQAT, VIP Trust, 1290 Funds (since inception in 2014) and Other AXA Trusts. Accounts receivable from these transactions were $47 million and $48 million at December 31, 2015 and 2014, respectively. Commissions, fees and other income includes certain revenues for services provided to mutual funds managed by AB. These revenues are described below:
2015 2014 2013 -------- -------- -------- (IN MILLIONS) Investment advisory and services fees......... $ 1,056 $ 1,062 $ 1,010 Distribution revenues......................... 415 433 455 Other revenues -- shareholder servicing fees.. 85 91 91 Other revenues -- other....................... 5 6 6
12)EMPLOYEE BENEFIT PLANS AXA Equitable Retirement Plans 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 $18 million, $18 million and $0 million in 2015, 2014 and 2013, respectively. AXA Equitable also sponsors the AXA Equitable Retirement Plan (the "AXA Equitable QP"), a qualified defined benefit pension plan covering its eligible employees (including certain qualified part-time 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 earnings over a specified period in the plan. Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable QP was transferred from AXA Equitable to AXA Financial under the terms of an Assumption Agreement (the "Assumption Transaction"). Immediately preceding the Assumption Transaction, the AXA Equitable QP had plan assets (held in a trust for the exclusive benefit of plan participants) with market value of approximately $2,236 million and liabilities of approximately $2,447 million. The assumption by AXA Financial and resulting extinguishment of AXA Equitable's primary liability for its obligations under the AXA Equitable QP was recognized by AXA Equitable as a capital contribution in the amount of $211 million ($137 million, net of tax), reflecting the non-cash settlement of its net unfunded liability for the AXA Equitable QP at December 31, 2015. In addition, approximately $1,193 million ($772 million, net of tax) unrecognized net actuarial losses related to the AXA Equitable QP and accumulated in AOCI were also transferred to AXA Financial due to the Assumption Transaction. AXA Equitable remains secondarily liable for its obligations under the AXA Equitable QP and would recognize such liability in the event AXA Financial does not perform under the terms of the Assumption Agreement. AXA Equitable announced in the third quarter of 2013 that benefit accruals under the AXA Equitable QP would be discontinued after December 31, 2013. This plan curtailment resulted in a decrease in the Projected Benefit Obligation ("PBO") of approximately $29 million, which was offset against existing deferred losses in AOCI, and recognition of a $3 million curtailment loss from accelerated recognition of existing prior service costs accumulated in OCI. AB Retirement Plans AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for Federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000. AB's benefits are based on years of credited service and average final base salary. Measurement Date The Company uses a December 31 measurement date for its pension plans. Contributions and Funding Policy For 2015, no cash contributions were made by AXA Equitable and AB to their respective qualified pension plans. The funding policy of the Company for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended by the Pension Protection Act of 2006 (the "Pension Act"), F-60 and not greater than the maximum it can deduct for Federal income tax purposes. Based on the funded status of the plans at December 31, 2015, no minimum contribution is required to be made to either plan in 2016 under ERISA, as amended by the Pension Act, but management is currently evaluating if it will make contributions during 2016. Similarly, AB currently does not plan to make a contribution to its pension plan during 2016. Net Periodic Pension Expense Components of net periodic pension expense for the Company's qualified plans were as follows:
2015 2014 2013 ------- ------- ------- (IN MILLIONS) Service cost................................. $ 8 $ 9 $ 40 Interest cost................................ 93 107 99 Expected return on assets.................... (159) (155) (155) Actuarial (gain) loss........................ 1 1 1 Net amortization............................. 110 111 155 Curtailment.................................. -- -- 3 ------- ------- ------- Net Periodic Pension Expense................. $ 53 $ 73 $ 143 ======= ======= =======
Changes in PBO Changes in the PBO of the Company's qualified plans were comprised of:
DECEMBER 31, ---------------- 2015 2014 ------- ------- (IN MILLIONS) Projected benefit obligation, beginning of year....................................... $ 2,657 $ 2,463 Service cost................................. -- -- Interest cost................................ 93 107 Actuarial (gains) losses..................... (6) 264 Benefits paid................................ (169) (177) Plan amendments and curtailments............. 1 -- ------- ------- Projected Benefit Obligation............... 2,576 2,657 Transfer to AXA Financial.................... (2,447) -- ------- ------- Projected Benefit Obligation, End of Year.... $ 129 $ 2,657 ======= =======
Changes in Plan Assets/Funded Status The following table discloses the changes in plan assets and the funded status of the Company's qualified pension plans. The fair value of plan assets supporting the AXA Equitable QP liability was not impacted by the Assumption Transaction and the payment of plan benefits will continue to be made from the plan assets held in trust for the exclusive benefit of plan participants.
DECEMBER 31, ---------------- 2015 2014 ------- ------- (IN MILLIONS) Pension plan assets at fair value, beginning of year.................................... $ 2,473 $ 2,401 Actual return on plan assets................. 24 250 Contributions................................ -- 6 Benefits paid and fees....................... (175) (184) ------- ------- Pension plan assets at fair value, end of year....................................... 2,322 2,473 PBO, immediately preceding the Transfer to AXA Financial.............................. 2,576 2,657 ------- ------- Excess of PBO Over Pension Plan Assets, immediately preceding the Transfer to AXA Financial................................. (254) (184) Transfer to AXA Financial.................... $ 211 $ -- ------- ------- Excess of PBO Over Pension Plan Assets, end of year.................................... $ (43) $ (184) ======= =======
F-61 Amounts recognized in the accompanying consolidated balance sheets to reflect the funded status of these plans were accrued pension costs of $43 million and $184 million at December 31, 2015 and 2014, respectively. The aggregate PBO/accumulated benefit obligation ("ABO") and fair value of pension plan assets for plans with PBOs/ABOs in excess of those assets were $2,576 million and $2,322 million, respectively, at December 31, 2015 and $2,657 million and $2,473 million, respectively, at December 31, 2014. Unrecognized Net Actuarial (Gain) Loss The following table discloses the amounts included in AOCI at December 31, 2015 and 2014 that have not yet been recognized by AXA Equitable as components of net periodic pension cost. Not shown in the table at December 31, 2015 is approximately $1,193 million unrecognized net actuarial losses related to the AXA Equitable QP and accumulated in AOCI transferred to AXA Financial due to the Assumption Transaction.
DECEMBER 31, ------------- 2015 2014 ----- ------- (IN MILLIONS) Unrecognized net actuarial (gain) loss....... $ 49 $ 1,144 Unrecognized prior service cost (credit)..... 1 -- ----- ------- Total...................................... $ 50 $ 1,144 ===== =======
The estimated net actuarial (gain) loss and prior service cost (credit) expected to be reclassified from AOCI and recognized as components of net periodic pension cost over the next year are approximately $340,000 and $0, respectively. Pension Plan Assets The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the invested assets of the Company that are measured at fair value on a recurring basis. See Note 2 for a description of the fair value hierarchy. 2015 -- Immediately following the Assumption Transaction, the total fair value of plan assets for the qualified pension plans of the Company at December 31, 2015 was approximately $86 million, all supporting the AB qualified retirement plan. 2014 -- The tables below disclose the allocation of the approximately $2,473 million fair value of total plan assets for the qualified pension plans of the Company and their level of observability within the fair value hierarchy at December 31, 2014. At December 31, 2014, assets classified as Level 1, Level 2 and Level 3 comprised approximately 32.4%, 57.6% and 10.0%, respectively, of qualified pension plan assets. During 2014, there were no transfers in/out of the Level 3 plan asset classification; activity in Level 3 consisted only of actual returns of approximately $22 million on those assets. Except for an investment at December 31, 2014 of approximately $1 million in a private REIT through a pooled separate account, there were no significant concentrations of credit risk arising within or across categories of qualified pension plan assets.
DECEMBER 31, ------------ 2015 2014 ----- ----- Fixed Maturities............................. 24.0% 49.4% Equity Securities............................ 56.0 38.8 Equity real estate........................... -- 9.8 Cash and short-term investments.............. -- 1.3 Other........................................ 20.0 0.7 ----- ----- Total...................................... 100.0% 100.0% ===== =====
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------- ------- ------- ------ (IN MILLIONS) DECEMBER 31, 2015: ASSET CATEGORIES Fixed Maturities: Other structured debt...................... $ -- $ 9 $ -- $ 9 Common and preferred equity.................. 24 -- -- 24 Mutual funds................................. 43 -- -- 43 Private real estate investment trusts........ -- 10 -- 10 ------- ------- ------- ------ Total..................................... $ 67 $ 19 $ -- $ 86 ======= ======= ======= ======
F-62
Level 1 Level 2 Level 3 Total ------- -------- ------- -------- (In Millions) December 31, 2014: Asset Categories Fixed Maturities: Corporate.................................. $ -- $ 833 $ -- $ 833 U.S. Treasury, government and agency....... -- 358 -- 358 States and political subdivisions.......... -- 18 -- 18 Other structured debt...................... -- 9 3 12 Common and preferred equity.................. 743 177 -- 920 Mutual funds................................. 46 -- -- 46 Private real estate investment funds......... -- -- 1 1 Private real estate investment trusts........ -- 10 242 252 Cash and cash equivalents.................... 13 -- -- 13 Short-term investments....................... -- 20 -- 20 ------- -------- ------- -------- Total..................................... $ 802 $ 1,425 $ 246 $ 2,473 ======= ======== ======= ========
Plan asset guidelines for the AB qualified retirement plan specify an allocation weighting of 30% to 60% for return seeking investments (target of 40%), 10% to 30% for risk mitigating investments (target of 15%), 0% to 25% for diversifying investments (target of 17%) and 18% to 38% for dynamic asset allocation (target of 28%). Investments in mutual funds, hedge funds (and other alternative investments), and other commingled investment vehicles are permitted under the guidelines. Investments are permitted in overlay portfolios (regulated mutual funds) to complement the long-term strategic asset allocation. This portfolio overlay strategy is designed to manage short-term portfolio risk and mitigate the effect of extreme outcomes by varying the asset allocation of a portfolio through investment in the overlay portfolios. Discount Rate and Other Assumptions The discount rate assumptions used by AXA Equitable to measure the benefits obligations and related net periodic cost of the AXA Equitable QP reflect the rates at which those benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under the AXA Equitable QP were discounted using a published high-quality bond yield curve for which AXA Equitable replaced its reference to the Citigroup-AA curve with the Citigroup Above-Median-AA curve beginning in 2014, thereby reducing the PBO of AXA Equitable's qualified pension plan and the related charge to equity to adjust the funded status of the plan by $25 million in 2014. At December 31, 2015, AXA Equitable refined its calculation of the discount rate to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient. Use of the discrete approach at December 31, 2015 produced a discount rate for the AXA Equitable QP of 3.98% as compared to a 4.00% aggregate rate, thereby increasing the net unfunded PBO of the AXA Equitable QP immediately preceding the Assumption Transaction by approximately $4 million in 2015. In fourth quarter 2015, the Society of Actuaries (SOA) released MP-2015, an update to the mortality projection scale issued last year by the SOA, indicating that while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested. For the year ended December 31, 2015 valuations of its defined benefits plans, AXA Equitable considered this new data as well as observations made from current practice regarding how best to estimate improved trends in life expectancies. As a result, AXA Equitable concluded to change the mortality projection scale used to measure and report its defined benefit obligations from 125% Scale AA to Scale BB, representing a reasonable "fit" to the results of the AXA Equitable QP mortality experience study and more aligned to current thinking in practice with respect to projections of mortality improvements. Adoption of that change increased the net unfunded PBO of the AXA Equitable QP immediately preceding the Assumption Transaction by approximately $83 million. At December 31, 2014, AXA Equitable modified its then-current use of Scale AA by adopting 125% Scale AA and introduced additional refinements to its projection of assumed mortality, including use of a full generational approach, thereby increasing the year-end 2014 valuation of the AXA Equitable QP PBO by approximately $54 million. F-63 The following table discloses assumptions used to measure the Company's pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2015 and 2014. As described above, AXA Equitable refined its calculation of the discount rate for the year ended December 31, 2015 valuation of its defined benefits plans to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient.
DECEMBER 31, ----------- 2015 2014 ----- ----- Discount rates: AXA Equitable QP, immediately preceding Transfer to AXA Financial..................................................... 3.98% N/A Other AXA Equitable defined benefit plans....................... 3.66% N/A AB Qualified Retirement Plan.................................... 4.3% N/A Benefits obligations (aggregate methodology for 2014)............ N/A 3.6% Periodic cost.................................................... 3.6% 3.6% Rates of compensation increase: Benefit obligation............................................... 6.00% 6.00% Periodic cost.................................................... 6.46% 6.00% Expected long-term rates of return on pension plan assets (periodic cost).................................................. 6.75% 6.75%
The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants' benefits under the AXA Equitable QP were funded through the purchase of non-participating annuity contracts from AXA Equitable. Benefit payments under these contracts were approximately $6 million, $10 million and $10 million for 2015, 2014 and 2013, respectively. Future Benefits The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2016, and in the aggregate for the five years thereafter, all of which are subsequent to the Assumption Transaction. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2015 and include benefits attributable to estimated future employee service.
PENSION BENEFITS -------------- (IN MILLIONS) 2016............................................................. $ 6 2017............................................................. 4 2018............................................................. 5 2019............................................................. 6 2020............................................................. 5 Years 2021 - 2025................................................ 36
AXA FINANCIAL ASSUMPTIONS In addition to the Assumption Transaction, since December 31, 1999, AXA Financial has 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; AXA Equitable remains secondarily liable. AXA Equitable reimburses AXA Financial, Inc. for costs associated with all of these plans, as described in Note 11. 13)SHARE-BASED AND OTHER COMPENSATION PROGRAMS AXA and AXA Financial sponsor various share-based compensation plans for eligible employees, financial professionals and non-officer directors of AXA Financial and its subsidiaries, including the Company. AB also sponsors its own unit option plans for certain of its employees. F-64 Compensations costs for 2015, 2014 and 2013 for share-based payment arrangements as further described herein are as follows:
2015 2014 2013 ----- ----- ---- (IN MILLIONS) Performance Units/Shares..................... $ 18 $ 10 $ 43 Stock Options................................ 1 1 2 AXA Shareplan................................ 16 10 13 AB Stock Options............................. -- -- (4) AB Restricted Units.......................... 174 171 286 Other Compensation plans/(1)/................ 2 -- -- ----- ----- ---- Total Compensation Expenses.................. $ 211 $ 192 $340 ===== ===== ====
/(1)/Other compensation plans include Stock Appreciation Rights, Restricted Stock and AXA Miles. U.S. employees are granted AXA ordinary share options under the Stock Option Plan for AXA Financial Employees and Associates (the "Stock Option Plan") and are granted AXA performance shares under the AXA International Performance Share Plan (the "Performance Share Plan"). Prior to 2013, they were granted performance units under the AXA Performance Unit Plan. Non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) are 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. They also were granted stock options in years prior to 2014. Performance Units and Performance Shares 2015 GRANT. On June 19, 2015, under the terms of the 2015 Performance Share Plan, AXA awarded approximately 1.7 million unearned performance shares to employees of AXA Equitable. The extent to which 2015-2017 cumulative performance targets measuring the performance of AXA and the insurance related businesses of AXA Financial Group are achieved will determine the number of performance shares earned, which may vary in linear formula 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 shares to all participants. In 2015, the expense associated with the June 19, 2015 grant of performance shares were $8 million. SETTLEMENT OF 2012 GRANT IN 2015. On April 2, 2015, cash distributions of approximately $53 million were made to active and former AXA Equitable employees in settlement of 2,273,008 performance units earned under the terms of the AXA Performance Unit Plan 2012. 2014 GRANT. On March 24, 2014, under the terms of the 2014 Performance Share Plan, AXA awarded approximately 2 million unearned performance shares to employees of AXA Equitable. The extent to which 2014-2016 cumulative performance targets measuring the performance of AXA and the insurance-related businesses of AXA Financial Group are achieved will determine the number of performance shares earned, which may vary in linear formula between 0% and 130% of the number of performance shares at stake. The first tranche of the performance shares will vest and be settled on the third anniversary of the award date; the second tranche of these performance shares will vest and be settled on the fourth anniversary of the award date. The plan will settle in shares to all participants. In 2015 and 2014, the expense associated with the March 24, 2014 grant of performance shares was approximately $4 million and $9 million, respectively. SETTLEMENT OF 2011 GRANT IN 2014. On April 3, 2014, cash distributions of approximately $26 million were made to active and former AXA Equitable employees in settlement of 986,580 performance units earned under the terms of the AXA Performance Unit Plan 2011. 2013 GRANT. On March 22, 2013, under the terms of the 2013 Performance Share Plan, AXA awarded approximately 2.2 million unearned performance shares to employees of AXA Equitable. 119.58% of the unearned performance shares were earned based on the performance of AXA and the insurance-related business of AXA Financial Group. The earned performance shares will vest and be settled on the third anniversary of the award date. The plan will settle in shares to all participants. In 2015, 2014 and 2013, the expense associated with the March 22, 2013 grant of performance shares was approximately $7 million, $2 million and $11 million, respectively. 50% SETTLEMENT OF 2010 GRANT IN 2013. On April 4, 2013, cash distributions of approximately $7 million and share distributions of approximately $49,000 were made to active and former AXA Equitable employees in settlement of 390,460 performance units, representing the remaining 50 percent of the number of performance units earned under the terms of the AXA Performance Unit Plan 2010. Cash distributions of approximately $9 million in settlement of approximately 539,000 performance units, representing the first 50 percent of the performance units earned under the terms of the AXA Performance Unit Plan 2010 were distributed in April 2012. F-65 For 2015, 2014 and 2013, the Company recognized compensation costs of $18 million, $10 million and $43 million, respectively, for performance shares and units earned to date. The fair values of awards made under these programs 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. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards as they are settled in cash. The fair value of performance units earned and reported in Other liabilities in the consolidated balance sheets at December 31, 2015 and 2014 was $0 and $58 million, respectively. Approximately 2 million outstanding performance shares are at risk to achievement of 2016 performance criteria, primarily representing all of the performance shares granted June 19, 2015 and the second tranche of performance shares granted March 24, 2014, for which cumulative average 2015-2017 and 2014-2016 performance targets will determine the number of performance shares earned under those awards, respectively. Stock Options 2015 GRANT. On June 19, 2015, 442,885 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 22.90 euros. All of those options have a five-year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 19, 2015, 244,597 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 19, 2015 have a ten-year term. The weighted average grant date fair value per option award was estimated at 1.58 euros using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 23.68%, a weighted average expected term of 8.2 years, an expected dividend yield of 6.29% and a risk-free interest rate of 0.92%. The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015, the Company recognized expenses associated with the June 19, 2015 grant of options of approximately $333,000. 2014 GRANT. On March 24, 2014, 395,720 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 18.68 euros All of those options have a five-year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on March 24, 2014, 214,174 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on March 24, 2014 have a ten-year term. The weighted average grant date fair value per option award was estimated at $2.89 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 29.24%, a weighted average expected term of 8.2 years, an expected dividend yield of 6.38% and a risk-free interest rate of 1.54%. The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015 and 2014, the Company recognized expenses associated with the March 24, 2014 grant of options of approximately $216,000 and $345,000, respectively. 2013 GRANT On March 22, 2013, approximately 457,000 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 13.81 euros. All of those options have a four-year graded vesting schedule, with one-third vesting on each of the second, third, and fourth anniversaries of the grant date. Approximately 246,000 of the total options awarded on March 22, 2013 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on March 22, 2013 have a ten-year term. The weighted average grant date fair value per option award was estimated at $1.79 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 31.27%, a weighted average expected term of 7.7 years, an expected dividend yield of 7.52% and a risk-free interest rate of 1.34%. The total fair value of these options (net of expected forfeitures) of $818,597 is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015, 2014 and 2013, the Company recognized expenses associated with the March 22, 2013 grant of options of approximately $71,000, $131,000 and $357,000, respectively. Shares Authorized There is no limitation in the Stock Option Plan or the Equity Plan for Directors on the number of shares that may be issued pursuant to option or other grants. F-66 A summary of the activity in the AXA, AXA Financial and AB option plans during 2015 follows:
Options Outstanding ---------------------------------------------------------------------------------- AXA Ordinary Shares AXA ADRs/(3)/ AB Holding Units ---------------------------- ------------------------ -------------------------- 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 Exercisable at January 1, 2015....... 16,837.9 (Euro) 21.39 1,105.2 $ 25.53 5,942.4 $ 45.03 Options granted.............................. 444.0 (Euro) 22.90 -- $ -- 29.1 $ 31.74 Options exercised............................ (4,196.7) (Euro) 18.26 (510.7) $ 25.33 (541.1) $ 17.06 Options forfeited, net....................... (483.1) (Euro) 22.75 (553.5) $ 25.59 (23.1) $ 89.95 Options expired/reinstated................... -- -- -- -- (8.8) $ 45.45 ----------- ----------- -------------- Options Outstanding at December 31, 2015..... 12,602.1 (Euro) 21.39 41.0 $ 27.28 5,398.5 $ 47.59 =========== =============== =========== =========== ============== ========== Aggregate Intrinsic Value/(1)/............... (Euro) --/(2)/ $ 245.3 $ -- =============== =========== ========== Weighted Average Remaining Contractual Term (in years)................................. 3.0 2.36 2.90 =========== =========== ============== Options Exercisable at December 31, 2015..... 10,074.6 (Euro) 22.50 40.9 $ 27.28 4,736.7 43.04 =========== =============== =========== =========== ============== ========== Aggregate Intrinsic Value/(1)/............... (Euro) -- $ 245.3 $ -- =============== =========== ========== Weighted Average Remaining Contractual Term (in years)................................. 2.48 2.36 2.90 =========== =========== ==============
/(1)/Aggregate intrinsic value, presented in millions, is calculated as the excess of the closing market price on December 31, 2015 of the respective underlying shares over the strike prices of the option awards. /(2)/The aggregate intrinsic value on options outstanding, exercisable and expected to vest is negative and is therefore presented as zero. /(3)/AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. Cash proceeds received from exercises of stock options in 2015 was $13 million. The intrinsic value related to exercises of stock options during 2015, 2014 and 2013 were approximately $200,000, $3 million and $14 million respectively, resulting in amounts currently deductible for tax purposes of approximately $70,000, $1 million, and $5 million, respectively, for the periods then ended. In 2015, 2014 and 2013, windfall tax benefits of approximately $70,000, $1 million and $5 million, respectively, resulted from exercises of stock option awards. At December 31, 2015, AXA Financial held 2,262 AXA ordinary shares in treasury at a weighted average cost of $24.86 per share, which were designated to fund future exercises of outstanding stock options. 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 AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2015, 2014 and 2013, respectively.
AXA Ordinary Shares AB Holding Units ---------------------------- ------------------------------ 2015 2014 2013 2015 2014 2013 -------- -------- -------- ------- ------- ------------ Dividend yield............................... 6.29% 6.38% 7.52% 7.1% 8.4% 8.0 - 8.3% Expected volatility.......................... 23.68% 29.24% 31.27% 32.1% 48.9% 49.7 - 49.8% Risk-free interest rates..................... 0.92% 1.54% 1.34% 1.5% 1.5% 0.8 - 1.7% Expected life in years....................... 8.2 8.2 7.7 6.0 6.0 6.0 Weighted average fair value per option at grant date................................. $ 1.73 $ 2.89 $ 1.79 $ 4.13 $ 4.78 $ 5.44
For 2015, 2014 and 2013, the Company recognized compensation costs (credits) for stock options of $1 million, $1 million and $(2) million, respectively. As of December 31, 2015, 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 2.48 years. F-67 Restricted Awards Under The Equity Plan for Directors, AXA Financial grants non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) restricted AXA ordinary shares Likewise, AB awards restricted AB Holding units to independent members of its General Partner. In addition, under its Century Club Plan, awards of restricted AB Holding units that vest ratably over three years are made to eligible AB employees whose primary responsibilities are to assist in the distribution of company-sponsored mutual funds. AXA Equitable has also granted restricted AXA ordinary share units ("RSUs") to certain executives. The 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. For 2015, 2014 and 2013, respectively, the Company recognized compensation costs of $174 million, $171 million and $286 million for outstanding restricted stock and 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 RSUs. At December 31, 2015, approximately 19.8 million restricted AXA ordinary shares and AB Holding unit awards remain unvested. At December 31, 2015, approximately $36 million of unrecognized compensation cost related to these unvested awards, net of estimated pre-vesting forfeitures, is expected to be recognized over a weighted average period of 3.20 years. The following table summarizes restricted AXA ordinary share activity for 2015. In addition, approximately 44,333 RSUs were granted during 2015 with graded vesting over a 3-year service period.
WEIGHTED SHARES OF AVERAGE RESTRICTED GRANT DATE STOCK FAIR VALUE ---------- ---------- Unvested as of January 1, 2015............... 51,460 $ 15.37 Granted...................................... 10,578 $ 23.25 Vested....................................... 28,028 $ 14.63 ---------- ---------- Unvested as of December 31, 2015............. 34,010 $ 18.43 ========== ==========
Restricted AXA Ordinary shares vested in 2015, 2014 and 2013 had aggregate vesting date fair values of approximately $1 million, $1 million and $1 million, respectively. Unrestricted Awards Under the Equity Plan for Directors, AXA Financial provides a stock retainer to non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable). Pursuant to the terms of the retainer, the non-officer directors receive AXA ordinary shares valued at $55,000 each year, paid on a semi-annual basis. These shares are not subject to any vesting requirement or other restriction. For the years ended December 31, 2015, 2014 and 2013, the Company recognized compensation expense of approximately $327,800, $350,300, and $350,000 for these unrestricted share awards. AXA Shareplan 2015 AXA SHAREPLAN. In 2015, eligible employees and financial professionals of participating AXA Financial subsidiaries were offered the opportunity to purchase newly-issued AXA stock, subject to plan limits, under the terms of AXA Shareplan 2015. Eligible employees and financial professionals could have reserved a share purchase during the reservation period from August 31, 2015 through September 14, 2015 and could have canceled their reservation or elected to make a purchase for the first time during the retraction/subscription period from October 22, 2015 through October 27, 2015. The U.S. dollar purchase price was determined by applying the U.S. dollar/Euro forward exchange rate on October 21, 2015 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 $20.17 per share. "Investment Option B" permitted participants to purchase AXA ordinary shares at a 8.57% formula discounted price of $23.05 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 2015 which is July 1, 2020. All subscriptions became binding and irrevocable on October 27, 2015. F-68 The Company recognized compensation expense of $16 million, $10 million and $13 million in 2015, 2014 and 2013 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 2015, 2014 and 2013 primarily invested under Investment Option B for the purchase of approximately 5 million, 5 million and 5 million AXA ordinary shares, respectively. AXA Miles Program 2012 On March 16, 2012, under the terms of the AXA Miles Program 2012, AXA granted 50 AXA Miles to every employee and eligible financial professional of AXA Group for the purpose of enhancing long-term employee-shareholder engagement. Each AXA Mile represents a phantom share of AXA stock that will convert to an actual AXA ordinary share at the end of a four-year vesting period provided the employee or financial professional remains in the employ of the company or has retired from service. Half of each AXA Miles grant, or 25 AXA Miles, were subject to an additional vesting condition that required improvement in at least one of two AXA performance metrics in 2012 as compared to 2011. This vesting condition has been satisfied. The total fair value of these AXA Miles awards of approximately $6 million, net of expected forfeitures, is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible and is updated to reflect changes in respect of the expectation for meeting the predefined performance conditions. In 2015, 2014 and 2013, respectively, the expense associated with the March 16, 2012 grant of AXA Miles was approximately $281,000, $295,000 and $278,000. AB Long-term Incentive Compensation Plans AB maintains several unfunded long-term incentive compensation plans for the benefit of certain eligible employees and executives. The AB Capital Accumulation Plan was frozen on December 31, 1987 and no additional awards have been made, however, ACMC, LLC ("ACMC"), an indirect, wholly-owned subsidiary of AXA Equitable, is obligated to make capital contributions to AB in amounts equal to benefits paid under this plan as well as other assumed contractual unfunded deferred compensation arrangements covering certain executives. Prior to changes implemented by AB in fourth quarter 2011, as further described below, compensation expense for the remaining active plans was recognized on a straight-line basis over the applicable vesting period. Prior to 2009, participants in these plans designated the percentages of their awards to be allocated among notional investments in Holding units or certain investment products (primarily mutual funds) sponsored by AB. Beginning in 2009, annual awards granted under the Amended and Restated AB Incentive Compensation Award Program were in the form of restricted Holding units. In fourth quarter 2011, AB implemented changes to AB's employee long-term incentive compensation award. AB amended all outstanding year-end deferred incentive compensation awards of active employees (i.e., those employees employed as of December 31, 2011), so that employees who terminate their employment or are terminated without cause may continue to vest, so long as the employees do not violate the agreements and covenants set forth in the applicable award agreement, including restrictions on competition, employee and client solicitation, and a claw-back for failing to follow existing risk management policies. This amendment resulted in the immediate recognition in the fourth quarter of the cost of all unamortized deferred incentive compensation on outstanding awards from prior years that would otherwise have been expensed in future periods. In addition, awards granted in 2012 contain the same vesting provisions and, accordingly, the Company's annual incentive compensation expense reflect 100% of the expense associated with the deferred incentive compensation awarded in each year. This approach to expense recognition closely matches the economic cost of awarding deferred incentive compensation to the period in which the related service is performed. AB engages in open-market purchases of AB Holding L.P. ("AB Holding") units ("Holding units") to help fund anticipated obligations under its incentive compensation award program, for purchases of Holding units from employees and other corporate purposes. During 2015 and 2014, AB purchased 8.5 million and 3.6 million Holding units for $218 million and $93 million respectively. These amounts reflect open-market purchases of 5.8 million and 0.3 million Holding units for $151 million and $7 million, respectively, with the remainder relating to purchases of Holding units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by Holding units purchased by employees as part of a distribution reinvestment election. During 2015, AB granted to employees and eligible directors 7.4 million restricted AB Holding unit awards (including 7.0 million granted in December for 2015 year-end awards). During 2014, AB granted to employees and eligible directors 7.6 million restricted AB Holding awards (including 6.6 million granted in December 2013 for 2014 year-end awards). Prior to third quarter 2014, AB funded these awards by allocating previously repurchased Holding units that had been held in its consolidated rabbi trust. During 2015 and 2014, AB Holding issued 0.5 million and 1.1 million Holding units, respectively, upon exercise of options to buy AB Holding units. AB Holding used the proceeds of $9 million and $19 million, respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued Holding units. F-69 Effective July 1, 2013, management of AB and AB Holding retired all unallocated Holding units in AB's consolidated rabbi trust. To retire such units, AB delivered the unallocated Holding units held in its consolidated rabbi trust to AB Holding in exchange for the same amount of AB units. Each entity then retired its respective units. As a result, on July 1, 2013, each of AB's and AB Holding's units outstanding decreased by approximately 13.1 million units. AB and AB Holding intend to retire additional units as AB purchases Holding units on the open market or from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, if such units are not required to fund new employee awards in the near future. If a sufficient number of Holding units is not available in the rabbi trust to fund new awards, AB Holding will issue new Holding units in exchange for newly-issued AB units, as was done in December 2013. The Company recorded compensation and benefit expenses in connection with these long-term incentive compensation plans of AB totaling $173 million, $173 million and $156 million for 2015, 2014 and 2013, respectively. The cost of the 2015 awards made in the form of restricted Holding units was measured, recognized, and disclosed as a share-based compensation program. On July 1, 2010, the AB 2010 Long Term Incentive Plan ("2010 Plan"), as amended, was established, under which various types of Holding unit-based awards have been available for grant to its employees and eligible directors, including restricted or phantom restricted Holding unit awards, Holding unit appreciation rights and performance awards, and options to buy Holding units. The 2010 Plan will expire on June 30, 2020 and no awards under the 2010 Plan will be made after that date. Under the 2010 Plan, the aggregate number of Holding units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued Holding units. As of December 31, 2015, 302,443 options to buy Holding units had been granted and 47.2 million Holding units net of forfeitures, were subject to other Holding unit awards made under the 2010 Plan. Holding unit-based awards (including options) in respect of 12.5 million Holding units were available for grant as of December 31, 2015. 14)INCOME TAXES A summary of the income tax (expense) benefit in the consolidated statements of earnings (loss) follows:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Income tax (expense) benefit: Current (expense) benefit.................. $ (36) $ (552) $ 197 Deferred (expense) benefit................. (150) (1,143) 1,876 ---------- --------- ---------- Total........................................ $ (186) $ (1,695) $ 2,073 ========== ========= ==========
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 35.0%. The sources of the difference and their tax effects are as follows:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Expected income tax (expense) benefit........ $ (578) $ (2,140) $ 1,858 Noncontrolling interest...................... 124 119 101 Separate Accounts investment activity........ 181 116 122 Non-taxable investment income (loss)......... 8 12 20 Tax audit interest........................... 1 (6) (14) State income taxes........................... 1 (4) (6) AB Federal and foreign taxes................. 2 4 2 Tax settlement............................... 77 212 -- Other........................................ (2) (8) (10) ---------- --------- ---------- Income tax (expense) benefit................. $ (186) $ (1,695) $ 2,073 ========== ========= ==========
In second quarter 2015, the Company recognized a tax benefit of $77 million related to settlement with the IRS on the appeal of proposed adjustments to the Company's 2004 and 2005 Federal corporate income tax returns. In second quarter 2014 the Company recognized a tax benefit of $212 million related to settlement of the IRS audit for tax years 2006 and 2007. F-70 In February 2014, the IRS released Revenue Ruling 2014-7, eliminating the IRS' previous guidance related to the methodology to be followed in calculating the Separate Account dividends received deduction ("DRD"). However, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, the issues previously raised related to the calculation of the DRD. The ultimate timing and substance of any such guidance is unknown. It is also possible that the calculation of the Separate Account DRD will be addressed in future legislation. Any such guidance or legislation could result in the elimination or reduction on either a retroactive or prospective basis of the Separate Account DRD tax benefit that the Company receives. The components of the net deferred income taxes are as follows:
DECEMBER 31, 2015 December 31, 2014 ------------------------- ------------------------- ASSETS LIABILITIES Assets Liabilities --------- --------------- --------- --------------- (IN MILLIONS) Compensation and related benefits............ $ 110 $ -- $ 150 $ -- Reserves and reinsurance..................... -- 1,740 -- 1,785 DAC.......................................... -- 1,253 -- 1,162 Unrealized investment gains or losses........ -- 134 -- 614 Investments.................................. -- 1,437 -- 1,490 Net operating losses and credits............. 424 -- 512 -- Other........................................ -- 25 112 -- --------- --------------- --------- --------------- Total........................................ $ 534 $ 4,589 $ 774 $ 5,051 ========= =============== ========= ===============
As of December 31, 2015, the Company had $424 million of AMT credits which do not expire. The Company does not provide income taxes on the undistributed earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are not permanently invested outside the United States. As of December 31, 2015, $255 million of accumulated undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $103 million would need to be provided if such earnings were remitted. At December 31, 2015 and 2014, of the total amount of unrecognized tax benefits $344 million and $397 million, respectively, would affect the effective rate. 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, 2015 and 2014 were $52 million and $77 million, respectively. For 2015, 2014 and 2013, respectively, there were $(25) million, $(43) million and $15 million in interest expense related to unrecognized tax benefits. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:
2015 2014 2013 --------- --------- -------- (IN MILLIONS) Balance at January 1,........................ $ 475 $ 592 $ 573 Additions for tax positions of prior years... 44 56 57 Reductions for tax positions of prior years.. (101) (181) (38) Additions for tax positions of current year.. -- 8 -- --------- --------- -------- Balance at December 31,...................... $ 418 $ 475 $ 592 ========= ========= ========
During the second quarter of 2015, the Company reached a settlement with the IRS on the appeal of proposed adjustments to the Company's 2004 and 2005 Federal corporate income tax returns. The IRS commenced their examination of the 2008 and 2009 tax years in 2015. It is reasonably possible that the total amounts of unrecognized tax benefit 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. F-71 15)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI represents cumulative gains (losses) on items that are not reflected in earnings (loss). The balances for the past three years follow:
DECEMBER 31, ----------------------------------- 2015 2014 2013 ---------- ---------- ----------- (IN MILLIONS) Unrealized gains (losses) on investments..... $ 241 $ 1,122 $ 153 Foreign currency translation adjustments..... (58) (33) (12) Defined benefit pension plans................ (12) (780) (757) ---------- ---------- ----------- Total accumulated other comprehensive income (loss)..................................... 171 309 (616) ---------- ---------- ----------- Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest.................... 57 42 13 ---------- ---------- ----------- Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable....... $ 228 $ 351 $ (603) ========== ========== ===========
Immediately preceding the Assumption Transaction, the AXA Equitable QP had approximately $1,193 million unrecognized net actuarial losses in AOCI that were transferred to AXA Financial, resulting in an increase in AOCI and a decrease in additional paid in capital of $1,193 million ($772 million net of tax), the net impact to AXA Equitable's consolidated Shareholder's Equity was $0. The components of OCI for the past three years, net of tax, follow:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period......... $ (25) $ (21) $ (12) (Gains) losses reclassified into net earnings (loss) during the period.......... -- -- -- ---------- --------- ---------- Foreign currency translation adjustment..... (25) (21) (12) ---------- --------- ---------- Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the year............................ (1,020) 1,043 (1,550) (Gains) losses reclassified into net earnings (loss) during the year/(1)/....... 12 37 49 ---------- --------- ---------- Net unrealized gains (losses) on investments.. (1,008) 1,080 (1,501) Adjustments for policyholders liabilities, DAC, insurance liability loss recognition and other................................... 127 (111) 302 ---------- --------- ---------- Change in unrealized gains (losses), net of adjustments and (net of deferred income tax expense (benefit) of $(480), $529 and $(654))..................................... (881) 969 (1,199) ---------- --------- ---------- Change in defined benefit plans: Net gain (loss) arising during the year..... -- (95) 198 Prior service cost arising during the year.. -- -- -- Less: reclassification adjustments to net earnings (loss) for:/(2)/ Amortization of net (gains) losses included in net periodic cost............ (4) 72 101 Amortization of net prior service credit included in net periodic cost............ -- -- -- ---------- --------- ---------- Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(15) and $161)....................... (4) (23) 299 ---------- --------- ---------- Total other comprehensive income (loss), net of income taxes............................. (910) 925 (912) Less: Other comprehensive (income) loss attributable to noncontrolling interest..... 15 29 (8) ---------- --------- ---------- Other Comprehensive Income (Loss) Attributable to AXA Equitable............... $ (895) $ 954 $ (920) ========== ========= ==========
/(1)/See "Reclassification adjustments" in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $(6) million, $(19) million and $(26) million for 2015, 2014 and 2013, respectively. /(2)/These AOCI components are included in the computation of net periodic costs (see Note 12). Reclassification amounts presented net of income tax expense (benefit) of $2 million, $(39) million and $(54) million for 2015, 2014 and 2013, respectively. Investment gains and losses reclassified from AOCI to net earnings (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 earnings (loss). Amounts reclassified from AOCI to net earnings (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 earnings (loss). Amounts presented in the table above are net of tax. F-72 16)COMMITMENTS AND CONTINGENT LIABILITIES 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 2016 and the four successive years are $216 million, $215 million, $201 million, $189 million, $166 million and $946 million thereafter. Minimum future sublease rental income on these non-cancelable operating leases for 2016 and the four successive years is $32 million, $31 million, $30 million, $30 million, $13 million and $67 million thereafter. Restructuring As part of the Company's on-going efforts to reduce costs and operate more efficiently, from time to time, management has approved and initiated plans to reduce headcount and relocate certain operations. In 2015, 2014 and 2013, respectively, AXA Equitable recorded $3 million, $42 million and $85 million pre-tax charges related to severance and lease costs. The amounts recorded in 2014 and 2013 included pre-tax charges of $25 million and $52 million, respectively, related to the reduction in office space in the Company's 1290 Avenue of the Americas, New York, NY headquarters. The restructuring costs and liabilities associated with the Company's initiatives were as follows:
DECEMBER 31, ----------------------------- 2015 2014 2013 -------- --------- -------- (IN MILLIONS) Balance, beginning of year................... $ 113 $ 122 $ 52 Additions.................................... 10 21 140 Cash payments................................ (32) (24) (66) Other reductions............................. (2) (6) (4) -------- --------- -------- Balance, End of Year......................... $ 89 $ 113 $ 122 ======== ========= ========
During 2013, AB recorded $28 million of pre-tax real estate charges related to a global office space consolidation plan. The charges reflected the net present value of the difference between the amount of AB's on-going contractual operating lease obligations for this space and their estimate of current market rental rates, as well as the write-off of leasehold improvements, furniture and equipment related to this space offset by changes in estimates relating to previously recorded real estate charges. Included in the 2013, real estate charge was a charge of $17 million related to additional sublease losses resulting from the extension of sublease marketing periods. AB will compare current sublease market conditions to those assumed in their initial write-offs and record any adjustments if necessary. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. At December 31, 2015, these arrangements include commitments by the Company to provide equity financing of $568 million to certain limited partnerships 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, 2015. The Company had $866 million of commitments under existing mortgage loan agreements at December 31, 2015. AB maintains a guarantee in connection with the AB Credit Facility. If SCB LLC is unable to meet its obligations, AB will pay the obligations when due or on demand. In addition, AB maintains guarantees totaling $400 million for the three of SCB LLC's three uncommitted lines of credit. AB maintains a guarantee with a commercial bank, under which it guarantees the obligations in the ordinary course of business of SCB LLC, Sanford C. Bernstein Limited ("SCBL") and AllianceBernstein Holdings (Cayman) Ltd. ("AB Cayman"). AB also maintains three additional guarantees with other commercial banks under which it guarantees approximately $361 million of obligations for SCBL. In the event that SCB LLC, SCBL or AB Cayman is unable to meet its obligations, AB will pay the obligations when due or on demand. F-73 During 2009, AB entered into a subscription agreement under which it committed to invest up to $35 million, as amended in 2011, in a venture capital fund over a six-year period. As of December 31, 2015 AB had funded $32 million of this commitment. During 2010, as general partner of the AB U.S. Real Estate L.P. (the "Real Estate Fund"), AB committed to invest $25 million in the Real Estate Fund. As of December 31, 2015, AB had funded $1 million of this commitment. During 2012, AB entered into an investment agreement under which it committed to invest up to $8 million in an oil and gas fund over a three-year period. As of December 31, 2015, AB had funded $6 million of this commitment. In December 2015, AB provided a 60 day guarantee to a commercial bank for borrowings by a company-sponsored fund up to a maximum of $50 million. The bank provided the fund with a limited partner subscription line for the unfunded commitments of the fund's limited partners. The fund is expected to repay the bank by calling capital from the limited partners. To the extent the fund is not able to repay the loan to the bank, AB will repay the loan under the guarantee, up to $50 million. The fund will repay AB for all amounts paid by AB under the guarantee. AB has not been required to perform under any of the above agreements and currently have no liability in connection with these agreements. 17)LITIGATION INSURANCE LITIGATION A lawsuit was filed in the United States District Court of the District of New Jersey in July 2011, entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC ("AXA Equitable FMG") ("Sivolella Litigation"). The lawsuit was filed derivatively on behalf of eight funds. The lawsuit seeks recovery under Section 36(b) of the Investment Company Act of 1940, as amended (the "Investment Company Act"), for alleged excessive fees paid to AXA Equitable and AXA Equitable FMG for investment management services. In November 2011, plaintiff filed an amended complaint, adding claims under Sections 47(b) and 26(f) of the Investment Company Act, as well as a claim for unjust enrichment. In addition, plaintiff purports to file the lawsuit as a class action in addition to a derivative action. In the amended complaint, plaintiff seeks recovery of the alleged overpayments, rescission of the contracts, restitution of all fees paid, interest, costs, attorney fees, fees for expert witnesses and reserves the right to seek punitive damages where applicable. In December 2011, AXA Equitable and AXA Equitable FMG filed a motion to dismiss the amended complaint. In May 2012, the Plaintiff voluntarily dismissed her claim under Section 26(f) seeking restitution and rescission under Section 47(b) of the 1940 Act. In September 2012, the Court denied the defendants' motion to dismiss as it related to the Section 36(b) claim and granted the defendants' motion as it related to the unjust enrichment claim. In January 2013, a second lawsuit was filed in the United States District Court of the District of New Jersey entitled Sanford et al. v. AXA Equitable FMG ("Sanford Litigation"). The lawsuit was filed derivatively on behalf of eight funds, four of which are named in the Sivolella lawsuit as well as four new funds, and seeks recovery under Section 36(b) of the Investment Company Act for alleged excessive fees paid to AXA Equitable FMG for investment management services. In light of the similarities of the allegations in the Sivolella and Sanford Litigations, the parties and the Court agreed to consolidate the two lawsuits. In April 2013, the plaintiffs in the Sivolella and Sanford Litigations amended the complaints to add additional claims under Section 36(b) of the Investment Company Act for recovery of alleged excessive fees paid to AXA Equitable FMG in its capacity as administrator of EQ Advisors Trust. The Plaintiffs seek recovery of the alleged overpayments, or alternatively, rescission of the contract and restitution of the excessive fees paid, interest, costs and fees. In January 2015, defendants filed a motion for summary judgment as well as various motions to strike certain of the Plaintiffs' experts in the Sivolella and Sanford Litigations. Also in January 2015, two Plaintiffs in the Sanford Litigation filed a motion for partial summary judgment relating to the EQ/Core Bond Index Portfolio as well as motions in limine to bar admission of certain documents and preclude the testimony of one of defendants' experts. In August 2015, the Court denied Plaintiffs' motions in limine and also denied both parties motions for summary judgment. The trial commenced in January 2016 and testimony concluded in February 2016. Closing arguments are scheduled to occur in May 2016 following post-trial briefing. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, entitled Andrew Yale, on behalf of himself and all others similarly situated v. AXA Life Insurance Company F/K/A AXA Equitable Life Insurance Company. The lawsuit is a putative class action on behalf of all persons and entities that, between 2011 and March 11, 2014, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by AXA Equitable (the "Policies"). The complaint alleges that AXA Equitable did not disclose in its New York statutory annual statements or elsewhere that the collateral for certain reinsurance transactions with affiliated reinsurance companies was supported by parental guarantees, an omission that allegedly caused AXA Equitable to misrepresent its "financial condition" and "legal reserve system." The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of all premiums paid by the class for the Policies during the relevant period. In June 2014, AXA Equitable filed a motion to dismiss the complaint F-74 on procedural grounds, which was denied in October 2014. In February 2015, plaintiffs substituted two new named plaintiffs and the action is now entitled Ross v. AXA Equitable Life Insurance Company. In July 2015, the Court granted AXA Equitable's motion to dismiss for lack of subject matter jurisdiction. In August 2015, plaintiffs filed a notice of appeal. In April 2015, the same plaintiffs' law firm filed a second action in the United States District Court for the Southern District of New York on behalf of a putative class of variable annuity holders with "Guaranteed Benefits Insurance Riders," entitled Calvin W. Yarbrough, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. The new action covers the same class period, makes substantially the same allegations, and seeks the same relief (return of all premium paid by class members) as the first action on behalf of life insurance policyholders. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as Ross. In October 2015, plaintiff filed a notice of appeal. A lawsuit was filed in the Supreme Court of the State of New York, County of Westchester, Commercial Division ("New York state court") in June 2014, entitled Jessica Zweiman, Executrix of the Estate of Anne Zweiman, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company. The lawsuit is a putative class action on behalf of "all persons who purchased variable annuities from AXA Equitable which subsequently became subject to the ATM Strategy, and who suffered injury as a result thereof." Plaintiff asserts that AXA Equitable breached the variable annuity contracts by implementing the volatility management tool. The lawsuit seeks unspecified damages. In July 2014, AXA Equitable filed a notice of removal to the United States District Court for the Southern District of New York. In September 2015, the New York federal district court granted AXA Equitable's motion to dismiss the Complaint. In October 2015, plaintiff filed a notice of appeal. In February 2016, plaintiff voluntarily dismissed her appeal. In November 2014, one of the plaintiff's law firms in Zweiman filed a separate lawsuit entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company in the Superior Court of New Jersey, Camden County ("New Jersey state court"). This lawsuit is a putative class action on behalf of "all AXA [Equitable] variable life insurance policyholders who allocated funds from their Policy Accounts to investments in AXA's Separate Accounts, which were subsequently subjected to volatility-management strategy, and who suffered injury as a result thereof" and asserts a claim for breach of contract similar to the claim in Zweiman. In February 2016, the New Jersey State Court dismissed the Complaint. In August 2015, another of the plaintiff's law firms in Zweiman filed a third lawsuit entitled Richard T. O'Donnell, on behalf of himself and all other similarly situated v. AXA Equitable Life Insurance Company in Connecticut Superior Court, Judicial Division of New Haven ("Connecticut state court"). This lawsuit purports to cover the same class definition, makes substantially the same allegations, and seeks the same relief as in Zweiman. In November 2016, the Connecticut federal district court transferred the action to the United States District Court for the Southern District of New York. ALLIANCEBERNSTEIN LITIGATION During first quarter 2012, AB received a legal letter of claim (the "Letter of Claim") sent on behalf of Philips Pension Trustees Limited and Philips Electronics UK Limited ("Philips"), a former pension fund client, alleging that AB Limited (one of AB's subsidiaries organized in the United Kingdom) was negligent and failed to meet certain applicable standards of care with respect to the initial investment in, and management of, a (Pounds)500 million portfolio of U.S. mortgage-backed securities. Philips has alleged damages ranging between $177 million and $234 million, plus compound interest on an alleged $125 million of realized losses in the portfolio. On January 2, 2014, Philips filed a claim form ("Claim") in the High Court of Justice in London, England, which formally commenced litigation with respect to the allegations in the Letter of Claim. AB believes that it has strong defenses to these claims, which were set forth in AB's October 12, 2012 response to the Letter of Claim and AB's June 27, 2014 Statement of Defence in response to the Claim, and AB intends to defend this matter vigorously. --------------------------------------------------------- Although the outcome of litigation and regulatory matters generally cannot be predicted with certainty, management intends to vigorously defend against the allegations made by the plaintiffs in the actions described above and believes that the ultimate resolution of the matters described therein involving AXA Equitable and/or its subsidiaries should not have a material adverse effect on the consolidated financial position of AXA Equitable. Management cannot make an estimate of loss, if any, or predict whether or not any of the matters described above will have a material adverse effect on AXA Equitable's consolidated results of operations in any particular period. In addition to the matters described above, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against life and health insurers and asset managers in the jurisdictions in which AXA Equitable and its respective subsidiaries do business. These actions and proceedings involve, 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. In addition, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against businesses in the jurisdictions in which AXA Equitable and its subsidiaries do business, including actions and proceedings related to alleged discrimination, alleged breaches of fiduciary duties in connection with qualified pension F-75 plans and other general business-related matters. Some of the matters have resulted in the award of substantial judgments, including material amounts of punitive damages, or in substantial settlements. Courts, juries and regulators often have substantial discretion in awarding damage awards and fines, including punitive damages. AXA Equitable and its subsidiaries from time to time are involved in such actions and proceedings. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on AXA Equitable's consolidated financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards and regulatory fines that bear little or no relation to actual economic damages incurred, continues to create the potential for an unpredictable judgment in any given matter. 18)INSURANCE GROUP STATUTORY FINANCIAL INFORMATION AXA Equitable is restricted as to the amounts it may pay as dividends to AXA Financial. Under New York Insurance law, a domestic life insurer may not, without prior approval of the NYDFS, pay a dividend to its shareholders exceeding an amount calculated based on a statutory formula. This formula would permit AXA Equitable to pay shareholder dividends not greater than approximately $1,525 million during 2016. Payment of dividends exceeding this amount requires the insurer to file a notice of its intent to declare such dividends with the NYDFS who then has 30 days to disapprove the distribution. For 2015, 2014 and 2013, respectively, AXA Equitable's statutory net income (loss) totaled $2,038 million, $1,664 million and $(28) million. Statutory surplus, capital stock and Asset Valuation Reserve ("AVR") totaled $5,895 million and $5,793 million at December 31, 2015 and 2014, respectively. In 2015, AXA Equitable paid $767 million in shareholder dividends and transferred approximately 10.0 million in Units of AB (fair value of $245 million) in the form of a dividend to AEFS. In 2014, AXA Equitable paid $382 million in shareholder dividends. In 2013, AXA Equitable paid $234 million in shareholder dividends and transferred approximately 10.9 million in Units of AB (fair value of $234 million) in the form of a dividend to AEFS. At December 31, 2015, AXA Equitable, in accordance with various government and state regulations, had $55 million of securities on deposit with such government or state agencies. In 2015, AXA Equitable repaid $200 million of third party surplus notes at maturity. In 2014 and 2013 AXA Equitable, with the approval of the NYDFS, repaid at par value plus accrued interest of $825 million and $500 million, respectively, of outstanding surplus notes to AXA Financial. At December 31, 2015 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, 2015. 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 U.S. 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 reflects 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. F-76 19)BUSINESS SEGMENT INFORMATION The following tables reconcile segment revenues and earnings (loss) from operations before income taxes to total revenues and earnings (loss) as reported on the consolidated statements of earnings (loss) and segment assets to total assets on the consolidated balance sheets, respectively.
2015 2014 2013 ---------- ----------- ---------- (IN MILLIONS) SEGMENT REVENUES: Insurance/(1)/............................... $ 6,822 $ 12,656 $ (54) Investment Management/(2)/................... 3,025 3,011 2,915 Consolidation/elimination.................... (28) (27) (21) ---------- ----------- ---------- Total Revenues............................... $ 9,819 $ 15,640 $ 2,840 ========== =========== ==========
/(1)/Includes investment expenses charged by AB of approximately $45 million, $40 million and $37 million for 2015, 2014 and 2013, respectively, for services provided to the Company. /(2)/Intersegment investment advisory and other fees of approximately $73 million, $67 million and $58 million for 2015, 2014 and 2013, respectively, are included in total revenues of the Investment Management segment.
2015 2014 2013 ----------- ---------- ----------- (IN MILLIONS) SEGMENT EARNINGS (LOSS) FROM OPERATIONS, BEFORE INCOME TAXES: Insurance.................................... $ 1,033 $ 5,512 $ (5,872) Investment Management/(1)/................... 618 603 564 Consolidation/elimination.................... (1) -- (1) ----------- ---------- ----------- Total Earnings (Loss) from Operations, before Income Taxes........................ $ 1,650 $ 6,115 $ (5,309) =========== ========== ===========
/(1)/Net of interest expenses incurred on securities borrowed.
DECEMBER 31, ---------------------- 2015 2014 ---------- ---------- (IN MILLIONS) SEGMENT ASSETS: Insurance.............................................. $ 182,738 $ 184,018 Investment Management.................................. 11,895 11,990 Consolidation/elimination.............................. (7) (3) ---------- ---------- Total Assets........................................... $ 194,626 $ 196,005 ========== ==========
In accordance with SEC regulations, the Investment Management segment includes securities with a fair value of $460 million and $415 million which have been segregated in a special reserve bank custody account at December 31, 2015 and 2014, respectively, for the exclusive benefit of securities broker-dealer or brokerage customers under the Exchange Act. 20)QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The quarterly results of operations for 2015 and 2014 are summarized below:
THREE MONTHS ENDED ------------------------------------------------- MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ---------- ----------- ------------ ------------ (IN MILLIONS) 2015 ---- Total Revenues............................... $ 3,567 $ 220 $ 5,714 $ 318 ========== =========== =========== ============ Total benefits and other deductions.......... $ 2,437 $ 1,973 $ 2,375 $ 1,384 ========== =========== =========== ============ Net earnings (loss).......................... $ 854 $ (1,025) $ 2,275 $ (640) ========== =========== =========== ============ 2014 ---- Total Revenues............................... $ 3,706 $ 3,524 $ 3,754 $ 4,656 ========== =========== =========== ============ Total benefits and other deductions.......... $ 2,195 $ 2,342 $ 2,186 $ 2,802 ========== =========== =========== ============ Net earnings (loss).......................... $ 1,056 $ 1,038 $ 1,077 $ 1,249 ========== =========== =========== ============
F-77 Retirement Investment Account(R) PROSPECTUS DATED MAY 1, 2016 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 CONTRACT. ALSO, YOU SHOULD READ THE PROSPECTUSES FOR AXA PREMIER VIP TRUST AND EQ ADVISORS TRUST WHICH CONTAIN IMPORTANT INFORMATION ABOUT THEIR PORTFOLIOS. -------------------------------------------------------------------------------- ABOUT THE RETIREMENT INVESTMENT ACCOUNT(R) The Retirement Investment Account(R) ("RIA") is an investment program that allows employer plan assets to accumulate on a tax-deferred basis. The investment funds ("Funds") and a guaranteed interest option listed in the table below, are available under RIA. The Funds and guaranteed interest option comprise the "investment options" covered by this prospectus. RIA is offered under a group annuity contract issued by AXA EQUITABLE LIFE INSURANCE COMPANY. This contract is no longer being sold. This prospectus is used with current contract owners only. You should note that your contract features and charges, and your investment options, may vary depending on your state and/or the date on which you purchased your contract. For more information about the particular features, charges and options applicable to you, please contact your financial professional and/or refer to copies of the documents you received when you enrolled. This prospectus is a disclosure document and describes all of the contract's material features, benefits, rights and obligations, as well as other information. The description of the contract's material provisions in this prospectus is current as of the date of this prospectus. If certain material provisions under the contract are changed after the date of this prospectus in accordance with the contract, those changes will be described in a supplement to this prospectus. You should carefully read this prospectus in conjunction with any applicable supplements. FUNDS POOLED SEPARATE ACCOUNTS/(1)/ -------------------------------------------------------------------------------- . AllianceBernstein Balanced -- Separate Account No. 10 . AllianceBernstein Common Stock -- Separate Account No. 4 . AllianceBernstein Mid Cap Growth -- Separate Account No. 3 -------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 66 -------------------------------------------------------------------------------- . AXA/AB Small Cap Growth . AXA Global Equity Managed Volatility . AXA International Core 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 . Charter/SM/ Multi-Sector Bond . Charter/SM/ Small Cap Value . EQ/BlackRock Basic Value Equity . EQ/Calvert Socially Responsible . EQ/Capital Guardian Research . EQ/Equity 500 Index . EQ/Intermediate Government Bond . EQ/International Equity Index . EQ/JPMorgan Value Opportunities . EQ/Large Cap Growth Index . EQ/Mid Cap Index . EQ/Money Market . EQ/Quality Bond PLUS . EQ/T. Rowe Price Growth Stock . EQ/Wells Fargo Omega Growth . Multimanager Technology -------------------------------------------------------------------------------- (1)The AllianceBernstein Balanced, AllianceBernstein Common Stock, and AllianceBernstein Mid Cap Growth Funds (the "Pooled Separate Accounts") are managed by AXA Equitable. Separate Account No. 66 Funds invest in shares of a corresponding portfolio ("portfolio") of AXA Premier VIP Trust and EQ Advisors Trust (the "Trusts"). In each case, the Funds and the corresponding portfolios have the same name. You should read the prospectuses for each Trust and keep them for future reference. GUARANTEED INTEREST OPTION. The guaranteed interest option credits interest daily and we guarantee principal. Registration statements relating to this offering have been filed with the Securities and Exchange Commission ("SEC"). The Statement of Additional Information ("SAI") dated May 1, 2016, is a part of the registration statement is available free of charge upon request by writing us or calling us toll-free. The SAI has been incorporated by reference into this prospectus. This prospectus and the SAI can also be obtained from the SEC's website at www.sec.gov. The table of contents for the SAI appears at the back of this prospectus. The SAI is available free of charge. You may request one by writing to our processing office at AXA Equitable, RIA Service Office, P.O. Box 8095, Boston, MA 02266-8095 or calling 1-800-967-4560. THE 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 SECURITIES 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. #27755 Contents of this Prospectus -------------------------------------------------------------------------------- About the Retirement Investment Account(R) 1 Index of key words and phrases 4 Who is AXA Equitable? 5 How to reach us 6 RIA at a glance -- key features 7 Other contracts 8 ------------------------------------------------------ FEE TABLE 9 ------------------------------------------------------ Examples 10 Condensed financial information 10 ------------------------------------------------------ 1. RIA FEATURES AND BENEFITS 11 ------------------------------------------------------ Investment options 11 The AllianceBernstein Balanced Fund 11 The AllianceBernstein Common Stock Fund 12 The AllianceBernstein Mid Cap Growth Fund 13 Investment manager of the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds 13 Portfolio holdings policy for the Pooled Separate Accounts 14 Funds investing in the Trusts 14 Portfolios of the Trusts 15 Risks of investing in the Funds 20 Risk factors -- AllianceBernstein Common Stock, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds 20 Change of investment objectives 21 Guaranteed interest option 21 ------------------------------------------------------ 2. HOW WE VALUE YOUR ACCOUNT VALUE 22 ------------------------------------------------------ How we determine the unit value 22 How we value the assets of the Funds 22 ------------------------------------------------------ 3. TRANSFERS 24 ------------------------------------------------------ Transfers among investment options 24 Disruptive transfer activity 24 ------------- When we use the words "we," "us" and "our" we mean AXA Equitable. When we address the reader of this prospectus with words such as "you" and "your," we generally mean the employer or plan sponsor of the plans who use RIA as an investment vehicle, unless otherwise explained. Further, the terms and conditions of the employer's plan govern the aspects of RIA available to plan participants. Accordingly, participants also should carefully consider the features of their employer's plan, which may be different from the features of RIA described in this prospectus. 2 CONTENTS OF THIS PROSPECTUS ------------------------------------------------------ 4. ACCESS TO YOUR ACCOUNT VALUE 26 ------------------------------------------------------ Participant loans 26 Choosing benefit payment options 26 ------------------------------------------------------ 5. RIA 27 ------------------------------------------------------ Summary of plan choices of RIA 27 How to make contributions 27 Selecting investment options 27 Allocating program contributions 28 ------------------------------------------------------ 6. DISTRIBUTIONS 29 ------------------------------------------------------ ------------------------------------------------------ 7. OPTIONAL PARTICIPANT RECORDKEEPING SERVICES 30 ------------------------------------------------------ ------------------------------------------------------ 8. CHARGES AND EXPENSES 31 ------------------------------------------------------ Participant recordkeeping services charge 32 Other billing arrangements 32 General information on fees and charges 33 ------------------------------------------------------ 9. TAX INFORMATION 34 ------------------------------------------------------ Buying a contract to fund a retirement arrangement 34 Impact of taxes to AXA Equitable 35 Certain rules applicable to plans designed to comply with Section 404(c) of ERISA 35 ------------------------------------------------------ 10. MORE INFORMATION 36 ------------------------------------------------------ About changes or terminations 36 IRS disqualification 36 About the separate accounts 36 About the Trusts 36 About the general account 36 When we pay proceeds 37 When transaction requests are effective 37 Voting rights 37 Cybersecurity 37 About legal proceedings 38 Financial statements 38 About the trustee 38 Reports we provide and available information 38 Acceptance and responsibilities 38 About registered units 38 Assignment and creditors' claims 38 Distribution of the contracts 38 Commissions and service fees we pay 39 ----------------------------------------------------------- APPENDIX ----------------------------------------------------------- I -- Condensed financial information I-1 ----------------------------------------------------------- STATEMENT OF ADDITIONAL INFORMATION Table of contents ----------------------------------------------------------- 3 CONTENTS OF THIS PROSPECTUS Index of key words and phrases -------------------------------------------------------------------------------- Below is an index of key words and phrases used in this prospectus. The index will refer you to the page where particular terms are defined or explained. This index should help you locate more information on the terms used in this prospectus.
PAGE AXA Equitable 5 business day 22 benefit payment options 26 Code 7 contracts 27 contributions 27 CWC 31 current rate 21 disruptive transfer activity 24 DOL 27 ERISA 7 exclusive funding employer plan 27 Fair valuation 23 financial professional 38 Funds 1 guaranteed interest option 1 IRS 31
PAGE investment options 1 market timing 24 Master Retirement Trust 27 minimum rate 21 participant recordkeeping service PRS 7,30 partial funding employer plan 27 participant-directed plans 24 portfolios 1 QDRO 31 RIA 1 SAI 1 separate accounts 35 Trusts 1,36 trustee-directed plans 24 unit 22 unit value 22
4 INDEX OF KEY WORDS AND PHRASES 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 Financial, Inc., which is an indirect wholly owned subsidiary of AXA S.A. ("AXA"), a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, AXA exercises significant influence over the operations and capital structure of AXA Equitable. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Equitable is solely responsible for paying all amounts owed to you under your contract. AXA Financial, Inc. and its consolidated subsidiaries managed approximately $573.0 billion in assets as of December 31, 2015. 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. 5 WHO IS AXA EQUITABLE? HOW TO REACH US Please communicate with us at the mailing addresses listed below for the purposes described. Certain methods of contacting us, such as by telephone or electronically may be unavailable or delayed. For example, our facsimile 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. In order to avoid delays in processing, please send your correspondence and check to the appropriate location listed below. 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 "Transfers" later in this prospectus). You can reach us to obtain: . Participation agreements, or enrollment or other forms used in RIA . Unit values and other values under your plan . Any other information or materials that we provide in connection with RIA -------------------------------------------------------------------------------- BY PHONE: 1-800-967-4560 (Service consultants are available weekdays 9 a.m. to 5 p.m. Eastern time.) -------------------------------------------------------------------------------- FOR CORRESPONDENCE AND CONTRIBUTION CHECKS SENT BY REGULAR MAIL: AXA Equitable P.O. Box 8095 Boston, MA 02266-8095 -------------------------------------------------------------------------------- FOR CONTRIBUTION CHECKS ONLY SENT BY REGISTERED, CERTIFIED, OR OVERNIGHT DELIVERY: AXA Equitable 30 Dan Road Canton, MA 02021 Your correspondence will be picked up at the mailing address noted above and delivered to our processing office. Your correspondence, however, is not considered received by us until it is received at our processing office. Our processing office is 30 Dan Road, Canton, MA. NO PERSON IS AUTHORIZED BY AXA EQUITABLE TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND THE SAI, OR IN OTHER PRINTED OR WRITTEN MATERIAL ISSUED BY AXA EQUITABLE. YOU SHOULD NOT RELY ON ANY OTHER INFORMATION OR REPRESENTATION. 6 WHO IS AXA EQUITABLE? RIA at a glance -- key features -------------------------------------------------------------------------------- EMPLOYER PLAN ARRANGEMENTS RIA is an investment program designed for employer plans THAT USE THE RIA CONTRACT that qualify for tax-favored treatment under Section 401(a) of the Internal Revenue Code of 1986, as amended ("Code"). Eligible employer plans include defined benefit plans, defined contribution plans or profit-sharing plans, including 401(k) plans. These employer plans generally also must meet the requirements of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). Employer plan arrangements chose RIA: . As the exclusive funding vehicle for an employer plan. If you chose this option, the annual amount of plan contributions must be at least $10,000. . As a partial investment funding vehicle for an employer plan. Under this option, the aggregate amount of contributions in the initial participation year were at least $50,000, and the annual aggregate amount of contributions thereafter must be at least $25,000. The guaranteed interest option is not available. Also, a partial funding agreement was completed. ------------------------------------------------------------------------------------------- RIA FEATURES . The maximum number of active investment options that may be selected at any time is 25. We currently offer 28 investment options. . Benefit distribution payments. . Optional Participant Recordkeeping Services ("PRS"), which includes participant-level recordkeeping and making benefit payments. . Available for trustee-directed or participant-directed plans. ------------------------------------------------------------ A PARTICIPANT-DIRECTED EMPLOYER PLAN IS AN EMPLOYER PLAN THAT PERMITS INVESTMENT DIRECTION BY PLAN PARTICIPANTS FOR CONTRIBUTION ALLOCATIONS OR TRANSFERS AMONG INVESTMENT OPTIONS. A TRUSTEE-DIRECTED EMPLOYER PLAN IS AN EMPLOYER PLAN THAT PERMITS THOSE SAME TYPES OF INVESTMENT DECISIONS ONLY BY THE EMPLOYER, A TRUSTEE OR ANY NAMED FIDUCIARY OR AN AUTHORIZED DELEGATE OF THE PLAN. ------------------------------------------------------------------------------------------- CONTRIBUTIONS . Can be allocated to any one investment option or divided among them. . May be made by check or wire transfer. . Are credited on the day of receipt if accompanied by properly completed forms. ------------------------------------------------------------------------------------------- TRANSFERS AMONG INVESTMENT . Generally, amounts may be transferred among the OPTIONS investment options. . There is no charge for transfers and no tax liability. . Transfers from the guaranteed interest option may be subject to limitations. ------------------------------------------------------------------------------------------- PROFESSIONAL INVESTMENT The Funds are managed by professional investment advisers. MANAGEMENT ------------------------------------------------------------------------------------------- GUARANTEED OPTIONS The guaranteed interest option pays interest at guaranteed rates and provides guarantees of principal. -------------------------------------------------------------------------------------------
TAX CONSIDERATIONS . On earnings No tax until you make withdrawals under the plan. . On transfers No tax on internal transfers among the investment options. --------------------------------------------------------------------------------
Because you are enrolling in an annuity contract that funds a qualified employer sponsored retirement arrangement, you should be aware that such annuities do not provide tax deferral benefits beyond those already provided by the Code. Before purchasing one of these annuities, you should consider whether its features and benefits beyond tax deferral meet your needs and goals. You may also want to consider the relative features, benefits and costs of these annuities with any other investment that you may use in connection with your retirement plan or arrangement. (For more information, see "Tax information" later in this prospectus.) --------------------------------------------------------------
7 RIA AT A GLANCE -- KEY FEATURES ------------------------------------------------------------------------------------- CHARGES AND EXPENSES . Ongoing operations fee assessed against assets invested in investment options including any outstanding loan balance. . Investment management and financial accounting fees and other expenses charged on a Fund-by-Fund basis, as applicable. . No sales charges deducted from contributions, but contingent withdrawal charges may apply for non- benefit distributions. . Charges of the Trusts' portfolios for management fees and other expenses, and 12b-1 fees. . Administrative fee if you purchase an annuity payout option. . Participant recordkeeping (optional) charge per participant annual fee of $25. . Loan fee of 1% of loan principal amount at the time the plan loan is made. . Administrative charge for certain Funds of Separate Account No. 66. . We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. This charge is generally deducted from the amount applied to an annuity payout option. ------------------------------------------------------------------------------------- BENEFIT PAYMENT OPTIONS . Lump sum. . Installments on a time certain or dollar certain basis. . Variety of fixed annuity benefit payout options as available under an employer's plan. ------------------------------------------------------------------------------------- ADDITIONAL FEATURES . Participant loans (if elected by your employer; some restrictions apply). . Quarterly reports showing: -- transactions in the investment options during the quarter for the employer plan; -- the number of units in the Funds credited to the employer plan; and -- the unit values and/or the balances in all of the investment options as of the end of the quarter. . Automatic confirmation notice to employer/trustee following the processing of an investment option transfer. . Annual and semiannual report of the Funds. -------------------------------------------------------------------------------------
THE ABOVE IS NOT A COMPLETE DESCRIPTION OF ALL MATERIAL PROVISIONS OF THE CONTRACT. IN SOME CASES RESTRICTIONS OR EXCEPTIONS APPLY. ALSO, ALL FEATURES OF THE CONTRACT ARE NOT NECESSARILY AVAILABLE IN YOUR STATE OR AT CERTAIN AGES. For more detailed information, we urge you to read the contents of this prospectus, as well as your contract. This prospectus is a disclosure document and describes all of the contract's material features, benefits, rights and obligations, as well as other information. Your contract and any endorsements, riders and data pages are the entire contract between you and AXA Equitable. The prospectus and contract should be read carefully before investing. Please feel free to call us if you have any questions. OTHER CONTRACTS We offer a variety of fixed and variable annuity contracts. They may offer features, including investment options, fees and/or charges that are different from those in the contracts offered by this prospectus. Not every contract is offered through the same distributor. Upon request, your financial professional can show you information regarding other AXA Equitable annuity contracts that he or she distributes. You can also contact us to find out more about any of the AXA Equitable annuity contracts. 8 RIA AT A GLANCE -- KEY FEATURES Fee table -------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay when enrolling in, owning, and surrendering the RIA contract. The tables reflect charges that affect plan balances participating in the Funds through the group annuity contract, as well as charges you will bear directly under your contract. The table also shows charges and expenses of the portfolios of each Trust that you will bear indirectly. Each of the charges and expenses is more fully described in "Charges and expenses" later in this prospectus. The first table describes fees and expenses that you will pay at the time that you surrender the contract, make certain withdrawals, purchase an annuity payout option or take a loan from the contract. Charges designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state, may also apply. WE DEDUCT NO SALES CHARGE AT THE TIME YOU MAKE A CONTRIBUTION, AND THERE ARE NO TRANSFER OR EXCHANGE FEES WHEN YOU TRANSFER ASSETS AMONG THE INVESTMENT OPTIONS UNDER THE CONTRACT. --------------------------------------------------------------------------------- CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS: --------------------------------------------------------------------------------- Maximum contingent withdrawal charge (as a percentage of Fund assets)/(1)/ 6% Administrative fee if you purchase an annuity payout option $175 Loan fee (as a percentage of amount withdrawn as loan principal at the time the loan is made) 1% --------------------------------------------------------------------------------- The following tables describe the fees and expenses that you will pay periodically during the time that you own the contract, not including underlying Trust portfolio fees and expenses.
---------------------------------------------------------------------------------- CHARGE WE DEDUCT FROM YOUR ACCOUNT VALUE ---------------------------------------------------------------------------------- Maximum ongoing operations fee (expressed as an annual percentage)/(2)/ 1.25%
---------------------------------------------------------------------------------- CHARGES WE DEDUCT EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS IN SEPARATE ACCOUNT NO. 66 ---------------------------------------------------------------------------------- Administrative charge (applies only to certain Funds/(3)/ in Separate Account No. 66)/(4)/ 0.05%
---------------------------------------------------------------------------------- POOLED TRUST EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE ----------------------------------------------------------------------------------
INVESTMENT MANAGEMENT AND DIRECT OPERATING AND ACCOUNTING FEE/(4)/ OTHER EXPENSES/(5)/ TOTAL ------------------ -------------------- ----- AllianceBernstein Common Stock 0.08% 0.08% 0.16% AllianceBernstein Mid Cap Growth 0.50% 0.03% 0.53% AllianceBernstein Balanced 0.50% 0.13% 0.63%
--------------------------------------------------------------------------------- CHARGES WE DEDUCT AT THE END OF EACH MONTH --------------------------------------------------------------------------------- Annual Optional Participant Recordkeeping Services Fee/(6)/ $25 per plan participant ---------------------------------------------------------------------------------
A proportionate share of all fees and expenses paid by a portfolio that corresponds to any variable investment option of the Trusts to which plan balances are allocated also applies. The table below shows the lowest and highest total operating expenses as of December 31, 2015 charged by any of the portfolios. 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 the portfolio. -------------------------------------------------------------------------------- PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS -------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses for 2015 (expenses Lowest Highest that are 0.61% 1.59% deducted from portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)/(7)/ --------------------------------------------------------------------------------
Notes: (1)The contingent withdrawal charge is waived in certain circumstances. The charge reduces to 2% of the amount withdrawn in the ninth participation year and cannot be imposed after the ninth anniversary of a plan's participation in RIA. (2)The annual ongoing operations fee is deducted monthly and applied on a decremental scale, declining to 0.50% on the account value over $1,000,000, except for plans that adopted RIA before February 9, 1986. (3)The Funds that have an Administrative charge are: Charter/SM/ Multi-Sector Bond, EQ/Intermediate Government Bond, EQ International Equity Index, EQ/Quality Bond PLUS, AXA/AB Small Cap Growth, EQ/Equity 500 Index and EQ/Money Market. (4)These fees will fluctuate from year to year and from fund to fund based on the assets in each fund. The percentage set forth in the table represents the highest fees incurred by a fund during the fiscal year ended December 31, 2015. These expenses may be higher or lower based on the expenses incurred by a fund during the fiscal year ended December 31, 2016. 9 FEE TABLE (5)These expenses vary by investment Fund, and will fluctuate from year to year based on actual expenses. The percentage set forth in the table represents the highest other expenses incurred by a Fund during the fiscal year ended December 31, 2015. These expenses may be higher based on the expenses incurred by the Funds during the fiscal year ended December 31, 2016. (6)We deduct this fee on a monthly basis at the rate of $2.08 per participant. (7)"Total Annual Portfolio Operating Expenses" are based, in part, on estimated amounts for options added during the fiscal year 2015, if applicable, and for the underlying portfolios. In addition, the "Lowest" represents the total annual operating expenses of the EQ/Equity 500 Index Portfolio. The "Highest" represents the total annual operating expenses of the Charter Small Cap Value Portfolio. EXAMPLES These examples are intended to help you compare the cost of investing in the RIA contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, separate account annual expenses, and underlying Trust fees and expenses. The examples below show the expenses (which expenses, including the Optional Participants Recordkeeping Services fee, are directly reflected in the participant's retirement account value) that a hypothetical contract owner would pay in the situations illustrated. For purposes of the two sets of examples below, the ongoing operations fee is computed by reference to the actual aggregate annual ongoing operations fee as a percentage of total assets by employer plans in the RIA annuity contract other than corporate plans, resulting in an estimated ongoing operations fee of $435.27 per $10,000. The examples reflect the $25 annual charge for the Optional Participant Recordkeeping Services. We assume there is no waiver of the withdrawal charge and that no loan has been taken. The charges used in the examples are the maximum expenses rather than the lower current expenses. The guaranteed interest option is not covered by the fee table and examples. However, the ongoing operations fee, the withdrawal charge, the loan fee, the Optional Participant Recordkeeping Services fee, and the administrative fee if you purchase an annuity payout option do apply to amounts in the guaranteed interest option. These examples should not be considered a representation of past or future expenses for any option. Actual expenses may be greater or less than those shown. Similarly, the annual rate of return assumed in the examples is not an estimate or guarantee of future investment performance. SEPARATE ACCOUNT NO. 66 EXAMPLES: These examples assume that you invest $10,000 in the Funds in Separate Account No. 66 under the contract for the time periods indicated. The examples also assume that your investment has a 5% return each year and assume the highest and lowest fees and expenses of any of the available portfolios (before expense limitations) of each Trust. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
SEPARATE ACCOUNT NO. 66 --------------------------------------------------------------------------------------------------------- IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT THE CONTRACT AT THE END OF THE END OF THE APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD --------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS --------------------------------------------------------------------------------------------------------- (a)assuming maximum fees and expenses of any of the Portfolios $1,356 $2,716 $4,011 $6,865 $772 $2,256 $3,663 $6,865 --------------------------------------------------------------------------------------------------------- (b)assuming minimum fees and expenses of any of the Portfolios $1,263 $2,462 $3,624 $6,251 $674 $1,988 $3,258 $6,251 ---------------------------------------------------------------------------------------------------------
POOLED SEPARATE ACCOUNT EXAMPLES: These examples assume that you invest $10,000 in the Funds in the Pooled separate accounts under the contract for the time periods indicated. The examples also assume that your investment has a 5% return each year. The example also assumes maximum contract charges and total annual expenses of the portfolios (before expense limitations) set forth in the previous charts. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
--------------------------------------------------------------------------------------------------------- IF YOU DO NOT SURRENDER YOUR IF YOU SURRENDER YOUR CONTRACT AT THE CONTRACT AT THE END OF THE END OF THE APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD --------------------------------------------------------------------------------------------------------- 1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS --------------------------------------------------------------------------------------------------------- AllianceBernsteinBalanced $1,268 $2,475 $3,645 $6,283 $679 $2,002 $3,279 $6,283 --------------------------------------------------------------------------------------------------------- AllianceBernsteinCommon Stock $1,212 $2,317 $3,400 $5,877 $619 $1,835 $3,023 $5,877 --------------------------------------------------------------------------------------------------------- AllianceBernsteinMid Cap Growth $1,252 $2,431 $3,576 $6,171 $662 $1,955 $3,207 $6,171 ---------------------------------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION Please see the Appendix at the end of this prospectus for unit values and the number of units outstanding of each Fund available as of December 31, 2015. FINANCIAL STATEMENTS OF THE FUNDS Each Fund is, or is part of, one of our separate accounts as described in "About the separate accounts" under "More information" later in this prospectus. The financial statements of the Funds are contained in the SAI. The financial statements for the portfolios of each Trust are included in the SAI for each Trust. 10 FEE TABLE 1. RIA features and benefits -------------------------------------------------------------------------------- INVESTMENT OPTIONS We offer various investment options under RIA, including the Funds and the guaranteed interest option. Each Fund has a different investment objective. The Funds try to meet their investment objectives by investing either in a portfolio of securities or by holding mutual fund shares. The maximum number of active investment options that can be available under any RIA annuity contract at any time is 25. We cannot assure you that any of the Funds will meet their investment objectives. You can lose your principal when investing in the Funds. In periods of poor market performance, the net return, after charges and expenses, may result in negative yields, including for the EQ/Money Market Fund. THE ALLIANCEBERNSTEIN BALANCED FUND OBJECTIVES The Balanced Fund (Separate Account No. 10) (the "Portfolio") seeks to achieve both appreciation of capital and current income through investment in a diversified Portfolio of publicly traded common stocks, equity-type securities, debt securities and short-term money-market instruments. The Balanced Fund will include allocations to three sub-portfolios: Global Structured Equity, US Core Fixed Income and Cash. INVESTMENT STRATEGIES The Global Structured Equity sub-portfolio's objective is to deliver consistent excess returns driven by intensive company research combined with a disciplined portfolio construction process focused on risk control. The sub-portfolio targets long-term growth of capital and to outperform the Morgan Stanley Capital International (MSCI) World Index over any three year period. The Global Structured Equity sub-portfolio invests primarily in equity and equity type securities (such as convertible bonds, convertible preferred and warrants) by using a disciplined investment approach to identify attractive investment candidates based on internally generated research. The Advisor's global industry research analysts are responsible for a primary research universe of companies that are primarily stocks in the MSCI World Index or stocks with similar characteristics that meet the Advisor's investment criteria. The analysts conduct in-depth research on these companies to uncover the most attractive investment opportunities. The sub-portfolio is constructed to maximize exposure to stocks selected by the Advisor's analysts and Portfolio Managers. Individual security weights are a function of the analyst view, ownership within other portfolios, volatility, correlation and index weight. It may also hold securities to control risk and to limit the traditional sources of risk such as style/theme exposures. The result is a combination of stocks in the sub-portfolio with fundamental characteristics, as well as country and sector weightings that approximate those of the benchmark. The sub-portfolio primarily invests its assets in countries included in the MSCI World Index, however the sub portfolio may not invest in Emerging Market securities that fall into the MSCI Emerging Markets country definition. The sub-portfolio may also utilize currency hedging through the use of currency forwards. For the currency hedging process, the Advisor uses forward contracts that require the purchase or delivery of a foreign currency at some future date. The price paid for the contract is the current price of the foreign currency in U.S. dollars plus or minus an adjustment based on the interest rate differential between the U.S. dollar and the foreign currency. This process utilizes the Advisor's currency multi-factor expected return model based upon: interest rate differentials, current account imbalances, convergence to purchasing-power parity and market momentum. The strategy is implemented using optimization tools that explicitly recognize the link between return potential and risk. The use of currency forwards may only be used for currency hedging purposes. The use of cross hedging may only be utilized with prior approval of AXA Equitable. The U.S. Core Fixed Income's sub-portfolio seeks to consistently add value relative to the broad bond market and core fixed income managers through a research driven, disciplined search for relative value opportunities across the full range of fixed income market sectors. It is actively managed, seeking to add value primarily through a combination of sector and security-specific selections. The Fixed Income process capitalizes on the Advisor's independent fundamental and quantitative research in an effort to add value. The process begins with proprietary expected return forecasts of our quantitative research team, which narrow the investment universe and identify those sectors, securities, countries and currencies that appear most/least attractive. These quantitative forecasts enable us to prioritize the further in-depth analysis of our fundamental credit and economic research teams. These fundamental research teams are focused on forecasting credit and economic fundamentals which confirm or refute our quantitative model findings. Once the quantitative and fundamental forecasts have been made, the Advisor's most senior research and portfolio management professionals meet in "research review" sessions where the forecasts are vetted with the goal of reconciling any differences between quantitative and fundamental projections and determining conviction level in each forecast, and identifying major themes to be implemented in the portfolios. The US Core team then translates the final research recommendations -- the output of the research review sessions -- into an appropriate portfolio risk target (tracking error). The US Core Team budgets this risk across the primary decisions (sector allocation, security selection and yield curve structure) with the use of proprietary portfolio construction tools. The U.S. Core Fixed Income sub-portfolio may invest in a wide variety of publicly traded debt instruments. The sub-portfolio will only purchase US-dollar denominated securities. The sub-portfolio's non-money market securities will consist primarily of the following publicly traded securities: 1) debt securities issued or guaranteed by the United States Government (such as U.S. Treasury securities), its agencies (such as the 11 RIA FEATURES AND BENEFITS Government National Mortgage Association), or instrumentalities (such as the Federal National Mortgage Association), 2) debt securities issued by governmental entities and corporations from developed and developing nations, 3) asset-backed securities, mortgage-related securities (including agency and non-agency fixed, ARM and hybrid pass-throughs, commercial mortgage-backed securities ("CMBS"), mortgage dollar rolls, and up to 5% agency and non-agency collateralized mortgage obligations ("CMOs"), zero coupon bonds, preferred stocks and trust preferred securities and inflation protected securities. At the time in which the account enters into a transaction involving the future delivery of securities which could result in potential economic leverage, the Advisor will maintain cash equivalents or other liquid securities in the portfolio having an amount equal to or greater than the market value of the position/commitment in question. In addition, the Advisor will monitor the account on a periodic basis to ensure that adequate coverage is maintained. The sub-portfolio may purchase 144A securities. The sub-portfolio may also buy debt securities with equity features, such as conversion or exchange rights or warrants for the acquisition of stock or participations based on revenues, sales or profits. All such securities will be investment grade, at the time of acquisition, i.e., rated BBB or higher by Standard & Poor's Corporation (S&P), Baa or higher by Moody's Investor Services, Inc. (Moody's), BBB or higher by Fitch or if unrated, will be of comparable investment quality. The sub-portfolio may directly invest in investment grade money market instruments. Cash equivalent investments are defined as any security that has a maturity less than one year, including repurchase agreements in accordance with AXA Equitable guidelines. Swap transactions are prohibited. The overall sub-portfolio duration is maintained approximately within 10% of the Barclays Capital Aggregate Bond Index. The Cash sub-portfolio may invest directly in investment-grade money market instruments. The portfolio may invest in cash equivalents in a commingled investment fund managed by the Advisor. ASSET ALLOCATION POLICIES The Portfolio includes an asset allocation with a 60% weighting for equity securities and a 40% weighting for debt securities (see chart below). This asset allocation, which has been adapted to AXA Equitable specifications, is summarized below. The Advisor will allow the relative weightings of the Portfolio's debt and equity components to vary in response to markets, but ordinarily only by +/- 3% of the portfolio. Beyond those ranges, the Advisor may generally rebalance the Portfolio toward the targeted asset allocation, in line with AXA Equitable specifications. The Fund is valued daily.
------------------------------------------------------------------------------- ALLOCATION AXA EQUITABLE'S PORTFOLIO TYPE SUB-PORTFOLIO SPECIFIED TARGET ------------------------------------------------------------------------------- Global Equity Global Structured Equity 60% ------------------------------------------------------------------------------- Total fixed and money market 40% instruments: . Fixed . 35%-US Core Fixed Income . Money market instruments . 5%-Cash -------------------------------------------------------------------------------
RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the AllianceBernstein Balanced Fund specifically. THE ALLIANCEBERNSTEIN COMMON STOCK FUND OBJECTIVE The investment objective of the AllianceBernstein Common Stock Fund (Separate Account No. 4) is to achieve long-term growth of capital. The Fund seeks to achieve its objective by investing its assets in securities represented in the Russell 1000 Growth Index ("Index"); it is intended that the Fund seeks to approximate the risk profile and investment return of the Index on an annualized basis. INVESTMENT STRATEGIES The Manager will use a replication construction technique to initiate and maintain the portfolio. The Fund seeks to approximate the Russell 1000 Growth Index by owning all securities in the portfolio in the approximate weight each represents in the Index. The Russell 1000 Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. (Source: Russell Investment Group). The majority of trading in the Fund each year will take place in June after the annual reconstitution of the Russell indexes by Russell Investments. The list of constituents is ranked based on total market capitalization as of May 31st of each year, with the actual reconstitution effective in June. Changes to the membership lists are pre-announced and subject to change if any corporate activity occurs or if any new information is received prior to release. Typically, passively managed portfolios are rebalanced when cash is accumulated due to dividend and interest receipts, monies are received from corporate reorganizations (i.e. tenders, mergers and buybacks) and external cash flows. AllianceBernstein may utilize index futures and Exchange Traded Funds to equitize short-term cash balances or effect basis trades to minimize transaction costs. These instruments are used if, in the advisor's opinion, they provide a more cost-effective alternative than transacting in the cash market. The Fund is valued daily. 12 RIA FEATURES AND BENEFITS RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the AllianceBernstein Common Stock Fund specifically. THE ALLIANCEBERNSTEIN MID CAP GROWTH FUND OBJECTIVE The AllianceBernstein Mid Cap Growth Fund (Separate Account No. 3) seeks to achieve long-term capital growth through a diversified portfolio of equity securities. The account will attempt to achieve this objective by investing primarily in the common stock of medium-sized companies which have the potential to grow faster than the general economy and to grow into much larger companies. INVESTMENT STRATEGIES The AllianceBernstein Mid Cap Growth Fund is actively managed to obtain excess return versus the Russell Mid Cap Growth Index. The Fund invested at least 80% of its total assets in the common stock of companies with medium capitalizations at the time of the Fund's investment, similar to the market capitalizations of companies in the Russell Mid Cap Growth Index. Companies whose capitalizations no longer meet this definition after purchase continue to be considered to have a medium market capitalization for purposes of the 80% policy. If deemed appropriate, in order to meet the investment objectives, the Fund may invest in companies in cyclical industries as well as in securities that the adviser believes are temporarily undervalued. The Fund may also invest in foreign companies without substantial business in the United States. In aggregate, IPO (Initial Public Offerings) investments cannot exceed 5% of the Fund at time of purchase, and no more than 10% due to appreciation. An IPO is an issuer's first offering of a security or class of a security to the public. The Fund may also invest in other types of securities including convertible preferred stocks, convertible debt securities and short-term securities such as corporate notes, and temporarily invest in money market instruments. Additionally, the Fund may invest up to 10% of its total assets in restricted securities. The Fund attempts to generate excess return by taking active risk in security selection by looking for companies with unique growth potential. The Fund may often be concentrated in industries where research resources indicate there is high growth potential. The Fund is valued daily. RISKS OF INVESTMENT STRATEGIES See "Risks of investing in the Funds" later in this prospectus, for information on the risks associated with an investment in the Funds generally, and in the AllianceBernstein Mid Cap Growth Fund specifically. Note, however, that due to the AllianceBernstein Mid Cap Growth Fund's investment policies, this Fund provides greater growth potential and greater risk than the AllianceBernstein Common Stock and AllianceBernstein Balanced Funds. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. INVESTMENT MANAGER OF THE ALLIANCEBERNSTEIN BALANCED, ALLIANCEBERNSTEIN COMMON STOCK AND ALLIANCEBERNSTEIN MID CAP GROWTH FUNDS The Board of Directors has delegated responsibility to a committee to authorize or approve investments in the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth funds (collectively, the "Funds"). That committee may exercise its investment authority directly or it may delegate it, in whole or in part, to a third party investment advisor. The committee has delegated responsibility to AllianceBernstein L.P. ("AllianceBernstein") to manage the Funds. Subject to that committee's broad supervisory authority, AllianceBernstein's investment officers and managers have complete discretion over the assets of the Funds and have been given discretion as to sales and, within specified limits, purchases of stocks, other equity securities and certain debt securities. When an investment opportunity arises that is consistent with the objectives of more than one account, investment opportunities are allocated among accounts in an impartial manner based on certain factors such as investment objective and current investment and cash positions. AllianceBernstein is registered as an investment advisor under the Investment Advisers Act of 1940, as amended. We are the majority-owners of AllianceBernstein, a limited partnership. AllianceBernstein acts as investment adviser to various separate accounts and general accounts of AXA Equitable and other affiliated insurance companies. AllianceBernstein also provides investment management and advisory services to mutual funds, endowment funds, insurance companies, foreign entities, qualified and non-tax qualified corporate funds, public and private pension and profit-sharing plans, foundations and tax-exempt organizations. The following portfolio managers are primarily responsible for the day-to-day management of the portfolios:
--------------------------------------------------------------------------------- BUSINESS EXPERIENCE FUND PORTFOLIO MANAGER FOR PAST 5 YEARS --------------------------------------------------------------------------------- AllianceBernstein Greg Wilensky Portfolio Manager Balanced Fund at AllianceBernstein since 1996 Joshua Lisser Portfolio Manager at AllianceBernstein since 1992 Judith A. De Vivo Portfolio Manager at AllianceBernstein since 1984 Ben Sklar Portfolio Manager at AllianceBernstein since 2009 John H. Fogarty Portfolio Manager at AllianceBernstein since 1997 --------------------------------------------------------------------------------- AllianceBernstein Judith A. De Vivo Portfolio Manager Common Stock Fund at AllianceBernstein since 1984 --------------------------------------------------------------------------------- AllianceBernstein Mid John H. Fogarty Portfolio Manager Cap Growth Fund at AllianceBernstein since 1997 ---------------------------------------------------------------------------------
The SAI provides additional information about the portfolio managers including compensation, other accounts managed and ownership of securities of the Funds. As of December 31, 2015 AllianceBernstein had total assets under management of approximately $467 billion. AllianceBernstein's main office is located at 1345 Avenue of the Americas, New York, New York 10105. 13 RIA FEATURES AND BENEFITS PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS A description of the policies and procedures with respect to disclosure of the portfolio securities of The AllianceBernstein Balanced Fund, The AllianceBernstein Common Stock Fund and the AllianceBernstein Mid Cap Growth Fund is available in the SAI. Generally, portfolio information is available 30 days after the month and free of charge by calling 1(866) 642-3127. FUNDS INVESTING IN THE TRUSTS The Funds of Separate Account No. 66 invest in corresponding portfolios of AXA Premier VIP Trust and EQ Advisors Trust. The investment results you will experience in any one of those Funds will depend on the investment performance of the corresponding portfolios. The table on the next page shows the names of the corresponding portfolios, their investment objectives, and their advisers. 14 RIA FEATURES AND BENEFITS PORTFOLIOS OF THE TRUSTS We offer affiliated 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 manager 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 investment advisers (the "sub-advisers") to carry out the 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 the 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 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 a participant, 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 Portfolios invest in other affiliated Portfolios (the "AXA Fund of Fund Portfolios"). The AXA Fund of Fund Portfolios offer participants a convenient opportunity to invest in other Portfolios that are managed and have been selected for inclusion in the AXA 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 participants and/or suggest that participants 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 AXA Fund of Fund Portfolios than certain other Portfolios available to you under your contract. 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 AXA Managed Volatility Portfolios may utilize a proprietary volatility management strategy developed by AXA FMG (the "AXA volatility management strategy"), and, in addition, certain AXA Fund of Fund Portfolios may invest in Portfolios that utilize this strategy. The AXA 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 AXA volatility management strategy, the manager 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 AXA Managed Volatility Portfolios that include the AXA volatility management strategy as part of their investment objective and/or principal investment strategy, and the AXA Fund of Fund Portfolios that invest in other Portfolios that use the AXA volatility management strategy, are identified below in the chart by a "(check mark) " under the column entitled "Volatility Management." Portfolios that utilize the AXA volatility management strategy (or, in the case of certain AXA Fund of Fund Portfolios, invest in other Portfolios that use the AXA volatility management strategy) are designed to reduce the overall volatility of your account value and provide you with risk-adjusted returns over time. The reduction in volatility helps us manage the risks associated with providing guaranteed benefits during times of high volatility in the equity market. During rising markets, the AXA 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 AXA volatility management strategy or, in the case of the AXA Fund of Fund Portfolios, that invest exclusively in other Portfolios that do not use the AXA 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 AXA volatility management strategy. Please further note that certain other Portfolios may utilize volatility management techniques that differ from the AXA volatility management strategy. Any such 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 AXA Ultra Conservative Strategy Portfolio (an investment option utilized solely by the ATP) and the 15 RIA FEATURES AND BENEFITS 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 AXA Ultra Conservative Strategy 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 VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE SUB-ADVISER(S) MANAGEMENT ---------------------------------------------------------------------------------------------------------------- CHARTER/SM/ A Seeks to achieve high total return through . AXA Equitable MULTI-SECTOR BOND a combination of current income and Funds Management capital appreciation. Group, LLC ---------------------------------------------------------------------------------------------------------------- CHARTER/SM/ SMALL B Seeks to achieve long-term growth of . AXA Equitable CAP VALUE capital. Funds Management Group, LLC
------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE SUB-ADVISER(S) MANAGEMENT ------------------------------------------------------------------------------------------------------------------- AXA/AB SMALL CAP IA Seeks to achieve long-term growth of . AllianceBernstein GROWTH capital. L.P. ------------------------------------------------------------------------------------------------------------------- AXA GLOBAL EQUITY IB Seeks to achieve long-term capital . AXA Equitable (check mark) MANAGED VOLATILITY appreciation with an emphasis on risk- Funds Management adjusted returns and managing volatility in Group, LLC the Portfolio. . BlackRock Investment Management, LLC . Morgan Stanley Investment Management Inc. . OppenheimerFunds, Inc. ------------------------------------------------------------------------------------------------------------------- AXA INTERNATIONAL IB Seeks to achieve long-term growth of . AXA Equitable (check mark) CORE MANAGED capital with an emphasis on risk-adjusted Funds Management VOLATILITY returns and managing volatility in the Group, LLC Portfolio. . BlackRock Investment Management, LLC . EARNEST Partners, LLC . Massachusetts Financial Services Company d/b/a MFS Investment Management . Federated Global Investment Management Corp. ------------------------------------------------------------------------------------------------------------------- AXA INTERNATIONAL IB Seeks to provide current income and long- . AXA Equitable (check mark) VALUE MANAGED term growth of income, accompanied by Funds Management VOLATILITY growth of capital with an emphasis on risk- Group, LLC adjusted returns and managing volatility in . BlackRock the Portfolio. Investment Management, LLC . Northern Cross, LLC -------------------------------------------------------------------------------------------------------------------
16 RIA FEATURES AND BENEFITS
--------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE SUB-ADVISER(S) MANAGEMENT --------------------------------------------------------------------------------------------------------------------- AXA LARGE CAP CORE IB Seeks to achieve long-term growth of . AXA Equitable (check mark) MANAGED VOLATILITY capital with an emphasis on risk-adjusted Funds Management returns and managing volatility in the Group, LLC Portfolio. . BlackRock Investment Management, LLC . Capital Guardian Trust Company . Vaughan Nelson Investment Management, L.P. . Thornburg Investment Management, Inc. --------------------------------------------------------------------------------------------------------------------- AXA LARGE CAP IB Seeks to provide long-term capital growth . AXA Equitable (check mark) GROWTH MANAGED with an emphasis on risk-adjusted returns Funds Management VOLATILITY and managing volatility in the Portfolio. Group, LLC . BlackRock Investment Management, LLC . Loomis, Sayles & Company, L.P. . T. Rowe Price Associates, Inc. . Wells Capital Management, Inc. --------------------------------------------------------------------------------------------------------------------- AXA LARGE CAP VALUE IA Seeks to achieve long-term growth of . AllianceBernstein (check mark) MANAGED VOLATILITY capital with an emphasis on risk-adjusted L.P. returns and managing volatility in the . AXA Equitable Portfolio. Funds Management Group, LLC . BlackRock Investment Management, LLC . Massachusetts Financial Services Company d/b/a MFS Investment Management --------------------------------------------------------------------------------------------------------------------- AXA MID CAP VALUE IB Seeks to achieve long-term capital . AXA Equitable (check mark) MANAGED VOLATILITY appreciation with an emphasis on risk- Funds Management adjusted returns and managing volatility in Group, LLC the Portfolio. . BlackRock Investment Management, LLC . Diamond Hill Capital Management, Inc. . Wellington Management Company, LLP --------------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC IB Seeks to achieve capital appreciation and . BlackRock VALUE EQUITY secondarily, income. Investment Management, LLC --------------------------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY IB Seeks to achieve long-term capital . Calvert RESPONSIBLE appreciation. Investment Management Inc. --------------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN IB Seeks to achieve long-term growth of capital. . Capital Guardian RESEARCH Trust Company --------------------------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX IA Seeks to achieve a total return before . AllianceBernstein expenses that approximates the total return L.P. performance of the Standard & Poor's 500 Composite Stock Price Index, including reinvestment of dividends, at a risk level consistent with that of the Standard & Poor's 500 Composite Stock Price Index. ---------------------------------------------------------------------------------------------------------------------
17 RIA FEATURES AND BENEFITS
---------------------------------------------------------------------------------------------------------------------- EQ ADVISORS TRUST VOLATILITY PORTFOLIO NAME SHARE CLASS OBJECTIVE SUB-ADVISER(S) MANAGEMENT ---------------------------------------------------------------------------------------------------------------------- EQ/INTERMEDIATE IA Seeks to achieve a total return before . AXA Equitable GOVERNMENT BOND expenses that approximates the total return Funds Management performance of the Barclays U.S. Group, LLC Intermediate Government Bond Index, . SSgA Funds including reinvestment of dividends, at a risk Management, Inc. level consistent with that of the Barclays U.S. Intermediate Government Bond Index. ---------------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL IA Seeks to achieve a total return (before . AllianceBernstein EQUITY INDEX expenses) that approximates the total return L.P. performance of a composite index 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/JPMORGAN VALUE IB Seeks to achieve long-term capital . J.P.Morgan OPPORTUNITIES appreciation. Investment Management Inc. ---------------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH IB Seeks to achieve a total return before . AllianceBernstein INDEX expenses that approximates the total return L.P. performance of the Russell 1000(R) Growth Index, including reinvestment of dividends at a risk level consistent with that of the Russell 1000(R) Growth Index. ---------------------------------------------------------------------------------------------------------------------- EQ/MID CAP INDEX IB Seeks to achieve a total return before . SSgA Funds expenses that approximates the total return Management, Inc. performance of the Standard & Poor's Mid Cap 400 Index, including reinvestment of dividends, at a risk level consistent with that of the Standard & Poor's Mid Cap 400 Index. ---------------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET/(*)/ IA Seeks to obtain a high level of current . The Dreyfus income, preserve its assets and maintain Corporation liquidity. ---------------------------------------------------------------------------------------------------------------------- EQ/QUALITY BOND PLUS IA Seeks to achieve high current income . AllianceBernstein consistent with moderate risk to capital. L.P. . AXA Equitable Funds Management Group, LLC . Pacific Investment Management Company LLC ---------------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE IB Seeks to achieve long-term capital . T. Rowe Price GROWTH STOCK appreciation and secondarily, income. Associates, Inc. ---------------------------------------------------------------------------------------------------------------------- EQ/WELLS FARGO IB Seeks to achieve long-term capital growth. . Wells Capital OMEGA GROWTH Management, Inc. ---------------------------------------------------------------------------------------------------------------------- MULTIMANAGER IB Seeks to achieve long-term growth of . Allianz Global TECHNOLOGY capital. Investors U.S. LLC . AXA Equitable Funds Management Group, LLC . SSgA Funds Management, Inc. . Wellington Management Company, LLP ----------------------------------------------------------------------------------------------------------------------
(*)The Board of Trustees of EQ Advisors Trust has approved changes to the Portfolio's principal investment strategies that will allow the Portfolio to operate as a "government money market fund." Effective April 1, 2016, 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. 18 RIA FEATURES AND BENEFITS 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 1-800-967-4560. 19 RIA FEATURES AND BENEFITS RISKS OF INVESTING IN THE FUNDS All of the Funds invest in securities of one type or another. You should be aware that any investment in securities carries with it a risk of loss, and you could lose money investing in the Funds. The different investment objectives and policies of each Fund may affect the return of each Fund and the risks associated with an investment in that Fund. Additionally, market and financial risks are inherent in any securities investment. By market risks, we mean factors which do not necessarily relate to a particular issuer, but affect the way markets, and securities within those markets, perform. Market risks can be described in terms of volatility, that is, the range and frequency of market value changes. Market risks include such things as changes in interest rates, general economic conditions and investor perceptions regarding the value of debt and equity securities. By financial risks we mean factors associated with a particular issuer which may affect the price of its securities, such as its competitive posture, its earnings and its ability to meet its debt obligations. The risk factors associated with an investment in the AllianceBernstein Common Stock, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are described below. See the SAI for additional information regarding certain investment techniques used by these Funds. See the prospectuses for each Trust for risk factors and investment techniques associated with the portfolios in which the other Funds invest. RISK FACTORS -- ALLIANCEBERNSTEIN COMMON STOCK, ALLIANCEBERNSTEIN MID CAP GROWTH AND ALLIANCEBERNSTEIN BALANCED FUNDS COMMON STOCK. Investing in common stocks and related securities involves the risk that the value of the stocks or related securities purchased will fluctuate. These fluctuations could occur for a single company, an industry, a sector of the economy, or the stock market as a whole. These fluctuations could cause the value of the Fund's investments -- and, therefore, the value of the Fund's units -- to fluctuate. SECURITIES OF MEDIUM AND SMALLER-SIZED COMPANIES. The AllianceBernstein Mid Cap Growth Fund invests primarily in the securities of medium-sized companies. The AllianceBernstein Balanced Fund may also make these investments, as well as investments in smaller-sized companies. The securities of small and medium-sized, less mature, lesser known companies involve greater risks than those normally associated with larger, more mature, well-known companies. Therefore, consistent earnings may not be as likely in small companies as in large companies. The Funds also run a risk of increased and more rapid fluctuations in the value of their investments in securities of small or medium-sized companies. This is due to the greater business risks of small-size and limited product lines, markets, distribution channels, and financial and managerial resources. Historically, the price of small (less than $1 billion) and medium (between $1 and $20 billion) capitalization stocks and stocks of recently organized companies have fluctuated more than the larger capitalization stocks and the overall stock market. One reason is that small and medium-sized companies have a lower degree of liquidity in the markets for their stocks, and greater sensitivity to changing economic conditions. NON-EQUITY SECURITIES. Investing in non-equity securities, such as bonds and debentures, involves the risk that the value of these securities held by the AllianceBernstein Balanced Fund -- and, therefore, the value of the Fund's units -- will fluctuate with changes in interest rates (interest rate risk) and the perceived ability of the issuer to make interest or principal payments on time (credit risk). A decline in prevailing interest rates generally will increase the value of the securities held by the AllianceBernstein Balanced Fund, while an increase in prevailing interest rates usually reduces the value of the AllianceBernstein Balanced Fund's holdings. As a result, interest rate fluctuations will affect the value of the AllianceBernstein Balanced Fund's units, but will not affect the income received from the Fund's current portfolio holdings. Moreover, convertible securities, which may be in the AllianceBernstein Balanced and AllianceBernstein Mid Cap Growth Funds, such as convertible preferred stocks or convertible debt instruments, contain both debt and equity features, and may lose significant value in periods of extreme market volatility. FOREIGN INVESTING. Investing in securities of foreign companies that may not do substantial business in the United States involves additional risks, including risk of loss from changes in the political or economic climate of the countries in which these companies do business. Foreign currency fluctuations, exchange controls or financial instability could cause the value of the AllianceBernstein, Mid Cap Growth and Balanced Funds' foreign investments to fluctuate. Additionally, foreign accounting, auditing and disclosure standards may differ from domestic standards, and there may be less regulation in foreign countries of stock exchanges, brokers, banks, and listed companies than in the United States. As a result, the Fund's foreign investments may be less liquid and their prices may be subject to greater fluctuations than comparable investments in securities of U.S. issuers. RESTRICTED SECURITIES. Investing in restricted securities involves additional risks because these securities generally (1) are less liquid than non-restricted securities and (2) lack readily available market quotations. Accordingly, the AllianceBernstein Balanced and the AllianceBernstein Mid Cap Growth Funds may be unable to quickly sell their restricted security holdings at fair market value. The following discussion describes investment risks unique to either the AllianceBernstein Common Stock Fund, AllianceBernstein Mid Cap Growth Fund or the AllianceBernstein Balanced Fund. RISKS OF INVESTMENT STRATEGIES. Due to the AllianceBernstein Mid Cap Growth Fund's aggressive investment policies, this Fund provides greater growth potential and may have greater risk than other equity offerings. As a result, you should consider limiting the amount allocated to this Fund, particularly as you near retirement. RISKS ASSOCIATED WITH THE ALLIANCEBERNSTEIN COMMON STOCK FUND While the objective of the Fund is to approximate the return of the Russell 1000 Growth Index, the actual performance of the Fund may deviate from the Index as a result of transaction costs, equitization of cash, security price deviations, investment management fees, operating expense charges such as custody and audit fees, any potential future exchange trading limits, and internal stock restrictions, all of which affects the Fund but not the Index. This deviation is commonly referred to as "tracking error." The Fund attempts to minimize these deviations through a management process which strives to minimize 20 RIA FEATURES AND BENEFITS transactions costs, keep the account fully invested and maintain a portfolio with characteristics that are systematically the same as those of the Russell 1000 Growth Index. RISKS ASSOCIATED WITH THE ALLIANCEBERNSTEIN BALANCED FUND Bonds rated below A by S&P, Moody's or Fitch are more susceptible to adverse economic conditions or changing circumstances than those rated A or higher, but we regard these lower-rated bonds as having an adequate capacity to pay principal and interest. CHANGE OF INVESTMENT OBJECTIVES We can change the investment objectives of the AllianceBernstein Common Stock, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds if the New York State Department of Financial Services approves the change. The investment objectives of the portfolios of the Trusts may be changed by the Board of Trustees of each Trust without the approval of shareholders. See "Voting rights" under "More information" later in this prospectus. GUARANTEED INTEREST OPTION The guaranteed interest option is part of our general account and pays interest at guaranteed rates. We discuss our general account under "More information" later in this prospectus. The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. After we credit the interest, we deduct certain charges and fees. We credit interest through and allocate interest on the date of any transfer or withdrawal transaction. We credit interest each day of the month to the account value in the guaranteed interest account at the beginning of the day at a daily rate equivalent to the guaranteed interest rate that applies to those amounts. CURRENT AND MINIMUM INTEREST RATES Except as described below, the "current rate" is the rate of interest that we actually credit to amounts in the guaranteed interest option for any given calendar year. We declare current rates for each class of employer plan that is using the RIA annuity contract as its funding vehicle before the beginning of each calendar year. In addition to the current rate, we declare "minimum rates" for the next two calendar years. The minimum interest rates will never be lower than 4%. The current interest rate for 2016 and the minimum interest rates for 2017 and 2018 guaranteed for each class are stated in the proposal documents submitted to sponsors of prospective RIA employer plans. The establishment of new classes will not decrease the rates that apply to employer plans already assigned to a previous class. The effective current rate for 2017 and the minimum rates effective for calendar year 2018 and 2019 will be declared in December 2016. CLASSES OF EMPLOYER PLANS We assigned an employer plan to a "class" of employer plans upon its participation in the Master Retirement Trust in order to help us determine the current and minimum guaranteed rates of interest that apply for the employer plan participating in the guaranteed interest option under the RIA annuity contract. The initial class of employer plans to which an employer plan was assigned depended on the date the plan was adopted. REVISED INTEREST RATES All of the following conditions must exist for us to declare a revised rate: . on the date of the allocation, the "current" guaranteed interest rate with respect to the employer plan's guaranteed interest option that would otherwise apply, exceeds the benchmark treasury rate by at least 0.75%; and . prior allocations to the guaranteed interest option for the employer plan during that calendar year equal or exceed 110% of the average annual allocations to the guaranteed interest option for the employer plan during the three immediately preceding calendar years. 21 RIA FEATURES AND BENEFITS 2. How we value your account value -------------------------------------------------------------------------------- FOR THE FUNDS. When you invest in a Fund, your contribution or transfer purchases "units" of that Fund. The unit value on any day reflects the value of the Fund's investments for the day and the charges and expenses we deduct from the Fund. We calculate the number of units you purchase by dividing the amount you invest by the unit value of the Fund as of the close of business on the day we receive your contribution or transfer instruction. -------------------------------------------------------------------------------- GENERALLY, OUR "BUSINESS DAY" IS ANY DAY ON WHICH THE NEW YORK STOCK EXCHANGE IS OPEN FOR TRADING. A BUSINESS DAY DOES NOT INCLUDE ANY DAY WE CHOOSE NOT TO OPEN DUE TO EMERGENCY CONDITIONS. WE MAY ALSO CLOSE EARLY DUE TO EMERGENCY CONDITIONS. -------------------------------------------------------------------------------- On any given day, your account value in any Fund equals the number of the Fund's units credited to your account, adjusted for any Fund's units cancelled from your account, multiplied by that day's value for one Fund unit. In order to take deductions from any Fund, we cancel units having a value equal to the amount we need to deduct. Otherwise, the number of your Fund units of any Fund does not change unless you make additional contributions, make a withdrawal, make a transfer, or request some other transaction that involves moving assets into or out of that Fund. FOR THE GUARANTEED INTEREST OPTION. The value of any investment in the guaranteed interest option is, at any time, the total contributions allocated to the guaranteed interest option, plus the interest earned, less (i) withdrawals to make employer plan benefit payments, (ii) withdrawals to make other employer plan withdrawals (including loans) and (iii) charges and fees provided for under the contracts. HOW WE DETERMINE THE UNIT VALUE When contributions are invested in the Funds, the number of units outstanding attributable to each Fund is correspondingly increased; and when amounts are withdrawn from one of these Funds, the number of units outstanding attributable to that Fund is correspondingly decreased. For the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds, the unit values reflect investment performance and investment management and financial accounting fees. We determine the respective unit values for these Funds by multiplying the unit value for the preceding business day by the net investment factor for that subsequent day. We determine the net investment factor as follows: . First, we take the value of the Fund's assets at the close of business on the preceding business day. . Next, we add the investment income and capital gains, realized and unrealized, that are credited to the assets of the Fund during the business day for which the net investment factor is being determined. . Then, we subtract the capital losses, realized and unrealized, and investment management and financial accounting fees charged to the Fund during that business day. . Finally, we divide this amount by the value of the Fund's assets at the close of the preceding business day. Prior to June 1, 1994, for the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds, the investment management and financial accounting fees were deducted monthly from employer plan balances in these Funds. For a Fund of Separate Account No. 66, the unit value for any business day together with any preceding non-business days ("valuation period") is equal to the unit value for the preceding valuation period multiplied by the net investment factor for that Fund for that valuation period. The net investment factor for a valuation period is: a - c ( -- ) b
where: (a)is the value of the Fund's shares of the corresponding portfolio at the end of the valuation period before giving effect to any amounts allocated to or withdrawn from the Fund for the valuation period. For this purpose, we use the share value reported to us by the applicable Trust. This share value is after deduction for investment advisory fees and other expenses of each Trust. (b)is the value of the Fund's shares of the corresponding portfolio at the end of the preceding valuation period (after any amounts are allocated or withdrawn for that valuation period). (c)is the daily factor for the separate account administrative charge multiplied by the number of calendar days in the valuation period. HOW WE VALUE THE ASSETS OF THE FUNDS Assets of the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds are valued as follows: . Common stocks listed on national securities exchanges are valued at the last sale price. If on a particular day there is no sale, the stocks are valued at the latest available bid price reported on a composite tape. Other unlisted securities reported on the NASDAQ Stock Exchange are valued at inside (highest) quoted bid prices. . Foreign securities not traded directly, or in ADR form, in the United States, are valued at the last sale price in the local currency on an exchange in the country of origin. Foreign currency is converted into dollars at current exchange rates. . United States Treasury securities and other obligations issued or guaranteed by the United States Government, its agencies or instrumentalities are valued at representative quoted prices. . Long-term publicly traded corporate bonds (i.e., maturing in more than one year) are valued at prices obtained from a bond 22 HOW WE VALUE YOUR ACCOUNT VALUE pricing service of a major dealer in bonds when such prices are available; however, in circumstances where it is deemed appropriate to do so, an over-the-counter or exchange quotation may be used. . Convertible preferred stocks listed on national securities exchanges are valued at their last sale price or, if there is no sale, at the latest available bid price. . Convertible bonds and unlisted convertible preferred stocks are valued at bid prices obtained from one or more major dealers in such securities; where there is a discrepancy between dealers, values may be adjusted based on recent premium spreads to the underlying common stock. . Short-term debt securities that mature in more than 60 days are valued at representative quoted prices. Short-term debt securities that mature in 60 days or less are valued at amortized cost, which approximates market value. . Option contracts listed on organized exchanges are valued at last sale prices or closing asked prices, in the case of calls, and at quoted bid prices, in the case of puts. The market value of a put or call will usually reflect, among other factors, the market price of the underlying security. When a Fund writes a call option, an amount equal to the premium received by the Fund is included in the Fund's financial statements as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. The current market value of a traded option is the last sale price or, in the absence of a sale, the last offering price. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase or sales transaction, the Fund realizes a gain or loss without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. When an option is exercised, the Fund realizes a gain or loss from the sale of the underlying security, and the proceeds of the sale are increased by the premium originally received, or reduced by the price paid for the option. FAIR VALUATION For the Pooled Separate Accounts, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under the direction of our investment officers in accordance with accepted accounting practices and applicable laws and regulations. Market quotations may not be readily available or reliable if, for example, trading has been halted in the particular security; the security does not trade for an extended period of time; or a trading limit has been imposed. For the Funds offered under Separate Account No. 66, securities and other assets for which market quotations are not readily available (or for which market quotations may not be reliable) are valued at their fair value under policies and procedures established by the Trusts. For more information, please see the prospectuses for the applicable Trust. The effect of fair value pricing is that securities may not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method deemed to reflect fair value. Such a policy is intended to assure that the net asset value of a separate account or fund fairly reflects security values as of the time of pricing. 23 HOW WE VALUE YOUR ACCOUNT VALUE 3. Transfers -------------------------------------------------------------------------------- TRANSFERS AMONG INVESTMENT OPTIONS You may transfer accumulated amounts among the investment options at any time and in any amount, subject to the transfer limitations described below. In addition to our rules, transfers among the investment options may be subject to employer plan provisions which may limit or disallow such movements. We do not impose a charge for transfers among the investment options. The following section describes transfer limitations that apply, under certain situations, to amounts transferred out of the guaranteed interest option during the calendar quarter in which the request is made and the three preceding calendar quarters ("transfer period"). PARTICIPANT-DIRECTED PLANS. Under these plans, the contract owner has instructed us to accept the plan trustee's allocations that are in accordance with the plan participants' directions. If the employer elects to fund the employer plan with the guaranteed interest option and the EQ/Money Market, EQ/Intermediate Government Bond, EQ/Quality Bond PLUS or Charter/SM/ Multi-Sector Bond Funds, during any transfer period, the following limitations apply: For plans electing the optional participant recordkeeping services ("PRS"), the maximum amount that may be transferred by the trustee on behalf of a participant from the guaranteed interest option is equal to the greater of: (i) 25% of the amount the participant had in the guaranteed interest option as of the last calendar day of the prior calendar year, or (ii) the total of all amounts transferred out of the guaranteed interest option during the prior calendar year on the participant's behalf. Generally, this means that new participants will not be able to direct the trustee to transfer amounts out of the guaranteed interest option during the first calendar year of their participation under the contract. If assets have been transferred from another funding vehicle by the employer, then the participant, for the transfer period in which the transfer occurred, may direct the trustee to transfer to the Funds up to 25% of such transferred amount that the participant initially allocated to the guaranteed interest option. For plans not electing the PRS, the maximum amount that may be transferred from the guaranteed interest option is equal to the greater of: (i) 25% of the amount the employer plan had in the guaranteed interest option as of the last calendar day of the prior calendar year, or (ii) the total of all amounts the employer plan transferred out of the guaranteed interest option during the prior calendar year. The employer plan is responsible for monitoring this transfer limitation. PRS is discussed in "Optional participant recordkeeping services" later in this prospectus. If assets have been transferred from another funding vehicle by the employer, then the trustee on behalf of the participant, for the transfer period in which the transfer occurred, may transfer to the Funds up to 25% of such transferred amount that was initially allocated to the guaranteed interest option. From time to time, we may remove certain restrictions that apply to transferring amounts out of the guaranteed interest option. If we do so, we will tell you. We will also tell you at least 45 days in advance of the day that we intend to reimpose the transfer restrictions. TRUSTEE-DIRECTED PLANS. Transfers of accumulated amounts among the investment options will be permitted as determined by us in our sole discretion only and subject to our rules then in effect. DISRUPTIVE TRANSFER ACTIVITY You should note that the contract is not designed for professional "market timing" organizations, or other organizations or individuals engaging in a market timing strategy. The contract is not designed to accommodate programmed transfers, frequent transfers or transfers that are large in relation to the total assets of the Fund or the underlying portfolio. Frequent transfers, including market timing and other program trading or short-term trading strategies, may be disruptive to the Funds or the underlying portfolios in which the Funds invest. Disruptive transfer activity may adversely affect performance and the interests of long-term investors by requiring a Fund or 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 Fund or 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 investment 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 Fund or portfolio cannot predict how much cash it will have to invest. In addition, disruptive transfers or purchases and redemptions of Fund or portfolio investments may impede efficient Fund or portfolio management and impose increased transaction costs, such as brokerage costs, by requiring the Fund or portfolio manager to effect more frequent purchases and sales of Fund or portfolio securities. Similarly, a Fund or 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. Funds or 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 Funds or portfolios that do not. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting Fund or 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 24 TRANSFERS procedures are subject to the following limitations: (1) they primarily rely on the policies and procedures implemented by the Fund or underlying portfolios; (2) they do not eliminate the possibility that disruptive transfer activity, including market timing, will occur or that 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 participants. We offer investment options with underlying portfolios that are part of AXA Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The 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 trust obtains from us owner trading activity. The trusts currently consider transfers into and out of (or vice versa) the same Fund within a five business day period as potentially disruptive transfer 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. When a participant is identified in connection with potentially disruptive transfer activity for the first time, a letter is sent to the participant 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 participant is identified a second time as engaged in potential disruptive transfer activity under the contract, we currently prohibit the use of voice, fax and automated transaction services. We currently apply such action for the remaining life of each affected contract. 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 participants uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. For the Pooled Separate Accounts, the portfolio managers review aggregate cash flows on a daily basis. If the portfolio managers consider transfer activity with respect to an account to be disruptive, AXA Equitable reviews participant's trading activity to identify any potentially disruptive transfer activity. AXA Equitable follows the same policies and procedures identified in the previous paragraph. We may change those policies and procedures, and any new or revised policies or procedures will apply to all participants uniformly. We do not permit exceptions to our policies restricting disruptive transfer activity. It is possible that the trusts may impose a redemption fee designed to discourage frequent or disruptive trading by participants. As of the date of this prospectus, the trusts had not implemented such a fee. If a redemption fee is implemented by the trusts, that fee, like any other trust fee, will be borne by the participant. Participants should note that it is not always possible for us and the trusts to identify and prevent disruptive transfer activity. Our ability to monitor potentially disruptive transfer activity is limited in particular with respect to certain group contracts. Group annuity contracts may be owned by retirement plans that provide transfer instructions on an omnibus (aggregate) basis, which may mask the disruptive transfer activity of individual plan participants, and/or interfere with our ability to restrict communication services. In addition, because we do not monitor for all frequent trading in the trust portfolios at the separate account level, participants 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 affiliated trusts will successfully impose restrictions on all potentially disruptive transfers. Because there is no guarantee that disruptive trading will be stopped, some participants may be treated differently than others, resulting in the risk that some participants 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. 25 TRANSFERS 4. Access to your account value -------------------------------------------------------------------------------- PARTICIPANT LOANS Contract withdrawals to make participant loans are available under RIA, if the employer plan permits them. Participants must apply for a plan loan through the employer plan. The plan administrator is responsible for administering the loan program. Loans are subject to restrictions under federal tax rules and ERISA. See "Tax information" later in this prospectus. Below we briefly summarize some of the important terms of the loan provisions under RIA. A more detailed discussion is provided in the SAI under "Loan provisions." Generally, all loan amounts must be taken from the guaranteed interest option. The participant must pay the interest as required by federal income tax rules. All repayments are made back into the guaranteed interest option. If the participant fails to repay the loan when due, the amount of the unpaid balance may be subject to a contingent withdrawal charge, taxes, and additional penalty taxes. Interest paid on a retirement plan loan is not deductible. The minimum amount of a loan for a participant is $1,000, and the maximum amount is 90% of the balances attributable to the plan participant in all the investment options. We also charge a loan fee in an amount equal to 1% of the loan principal amount on the date a loan is made. In addition, while the maximum amount of a loan under the Contract is 90% of the balances attributable to the plan participant, the amount of the loan to a participant under the plan is limited by federal tax rules. Those rules will limit the amount of a loan the participant may withdraw under the Contract. CHOOSING BENEFIT PAYMENT OPTIONS RIA offers a variety of benefit payment options, subject to the provisions of an employer's plan. Plan participants should consult their employer for details. An employer's plan may allow a choice of one or more of the following forms of distribution: . purchase of one of our annuities; . lump sum distribution; . use of part of the proceeds to purchase one of our annuities with the balance to be paid as a lump sum; or . permitted cash withdrawals. Subject to the provisions of your plan, RIA makes available the following forms of fixed annuities: . life annuity; . life annuity - period certain; . life annuity - refund certain; . period certain annuity; and . qualified joint and survivor life annuity. All of the forms outlined above (with the exception of the qualified joint and survivor life annuity) are available as either single or joint life annuities. We also offer other annuity forms not outlined here. The distribution will be in the form of a life annuity or another form offered by us at the time. We reserve the right to remove or change these annuity payout options, other than the life annuity, or to add another payout option at any time. The various fixed annuities we offer under RIA are described in greater detail in the SAI under "Annuity benefits." As a general matter, the minimum amount that can be used to purchase any type of annuity, net of all applicable charges and fees, is $3,500. An annuity administrative fee of $175 will be deducted from the amount used to purchase an annuity. We require that the amount of any benefit distribution from an employer plan that uses RIA as a partial investment funding vehicle be in proportion to the amount of plan assets held in RIA, unless we and the plan trustees specifically agree in writing to some other method. Requests for cash distributions must be made to us on an aggregate basis opposed to a participant-by-participant basis, except for employer plans using the PRS discussed in "Optional participant recordkeeping services" later in this prospectus. Cash withdrawals by a plan participant prior to retirement may give rise to contingent withdrawal charges, and tax penalties or other adverse tax consequences. See "Tax information" later in this prospectus. We make distribution checks payable to the trustees of the plan. The plan trustees are responsible for distribution of Funds to the participant or other payee and for any applicable federal and state income tax withholding and reporting. See "Tax information" later in this prospectus. RIA does not have separate disability or death benefit provisions. All disability and death benefits are provided in accordance with the employer plan. 26 ACCESS TO YOUR ACCOUNT VALUE 5. RIA -------------------------------------------------------------------------------- This section explains RIA in further detail. It is intended for employers who use RIA, but contains information of interest to plan participants as well. Plan participants should, of course, understand the provisions of their plan that describes their rights in more specific terms. RIA is an investment program designed for employer plans that qualify for tax-favored treatment under Section 401(a) of the Code. Eligible employer plans include defined benefit plans, defined contribution plans or profit-sharing plans, including 401(k) plans. These employer plans generally must also meet the requirements of ERISA. RIA consists of two group annuity contracts ("contracts") issued by AXA Equitable, a Master Retirement Trust agreement, a participation or installation agreement, and an optional participant recordkeeping services ("PRS") agreement. RIA had $44.42 million in assets as of December 31, 2015. Our service consultants are available to answer your questions about RIA. Please contact us by using the telephone number or addresses listed under "How to reach us - INFORMATION ON JOINING RIA" earlier in this prospectus. SUMMARY OF PLAN CHOICES OF RIA RIA is used: . as the exclusive funding vehicle for the assets of an employer plan. Under this option, the annual amount of plan contributions must be at least $10,000. We call this type of plan an "exclusive funding employer plan"; or . as a partial investment funding vehicle for an employer plan. Under this option, the aggregate amount of contributions in the initial participation year must be at least $50,000, and the annual aggregate amount of contributions thereafter must be at least $25,000. We call this type of plan a "partial funding employer plan." We do not offer the guaranteed interest option with a partial funding employer plan. A partial funding agreement with us was required to use this partial funding employer plan. An exclusive funding employer plan may not change its participation basis to that of a partial funding employer plan, or vice versa, unless the underwriting and other requirements referred to above are satisfied and approved by us. We reserve the right to impose higher annual minimums for certain plans. We will give you advance notice of any such changes. You have the choice of using RIA with two types of plans. You may use RIA for: . participant-directed employer plans, which permit participants to allocate contributions and transfer account accumulations among the investment options; or . trustee-directed employer plans, which permit these types of investment decisions to be made only by the employer, a trustee or any named fiduciary or an authorized delegate of the plan. At our sole discretion, a trustee-directed plan may change its participation basis to a participant-directed plan. MAKING THE RIGHT CHOICES FOR YOUR PLAN DEPENDS ON YOUR OWN SET OF CIRCUMSTANCES. WE RECOMMEND THAT YOU REVIEW ALL CONTRACTS AND TRUST, PARTICIPATION AND RELATED AGREEMENTS WITH YOUR LEGAL AND TAX COUNSEL. HOW TO MAKE CONTRIBUTIONS REGULAR CONTRIBUTIONS. Contributions may be made by check or by wire transfer. All contributions under an employer plan should be sent to the address under "For contributions checks only" in "How to reach us" earlier in this prospectus. All contributions made by check must be drawn on a U.S. bank, in U.S. dollars, and made payable to AXA Equitable. Third-party checks are not acceptable, except for roll-over contributions, tax-free exchanges or trustee checks that involve no refund. All checks are subject to our ability to collect the funds. We reserve the right to reject a payment if it is received in an unacceptable form. Contributions are normally credited on the business day that we receive them. Contributions are only accepted from the employer or plan trustee. There is no minimum amount for each contribution where employer plan contributions are made on a basis more frequent than annually. The total amount of contributions under an employer plan is limited by law. See "Tax information" later in this prospectus. To make a rollover or transfer to an existing RIA Plan, funds must be in cash. Therefore, any assets accumulated under another existing plan will have to be liquidated for cash. SELECTING INVESTMENT OPTIONS You can select from the investment options available under the contracts. The maximum number of active options you may select at any time is 25. Plan participant choices will be limited to the investment options selected. If the Plan is intended to comply with the requirements of ERISA Section 404(c), the employer or the plan trustee is responsible for making sure that the investment options chosen constitute a broad range of investment choices as required by the Department of Labor ("DOL") Section 404(c) regulations. Generally, for participant-directed plans, if you intend for your plan to comply with ERISA Section 404(c), you should, among other things: . select the EQ/Money Market Fund if you select any of the EQ/Intermediate Government Bond, EQ/Quality Bond PLUS, or Charter/SM/ Multi-Sector Bond Funds; or . select the guaranteed interest option if you do not select any of the EQ/Money Market, EQ/Intermediate Government Bond, EQ/Quality Bond PLUS, Charter/SM/ Multi-Sector Bond or AXA/AB Small Cap Growth Funds. 27 RIA If you select any of the EQ/Money Market, EQ/Intermediate Government Bond, EQ/Quality Bond PLUS or Charter/SM/ Multi-Sector Bond Funds and the guaranteed interest option, certain restrictions will apply to transfers out of the guaranteed interest option. ALLOCATING PROGRAM CONTRIBUTIONS We allocate contributions to the investment options in accordance with the allocation instructions provided to us by the plan trustee or the individual who the plan trustee has previously authorized in writing. Allocations may be made by dollar amounts or in any whole number percentages that total 100%. Allocation changes may be made without charge, but may be subject to employer plan provisions that may limit or disallow such movements. 28 RIA 6. Distributions -------------------------------------------------------------------------------- Keep in mind two sets of rules when considering distributions or withdrawals from RIA. The first are rules and procedures that apply to the investment options, exclusive of the provisions of your plan. We discuss those in this section. The second are rules specific to your plan, which are not described here. Moreover, distribution and benefit payment options under a tax qualified retirement plan are subject to complicated legal requirements. A general explanation of the federal income tax treatment of distributions and benefit payment options is provided in "Tax information" later in this prospectus and the SAI. The participant should discuss his or her options with a qualified financial adviser. Our service consultants also can be of assistance. Certain plan distributions may be subject to a contingent withdrawal charge, federal income tax, and penalty taxes. See "Charges and expenses" and "Tax information" later in this prospectus. AMOUNTS IN THE FUNDS. These are generally available for distribution at any time, subject to the provisions of your plan. Distributions from the AllianceBernstein Common Stock, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds are permitted at any time. Distributions from remaining Funds are permitted at any time except if there is any delay in redemptions from the corresponding portfolio of each Trust, as applicable. See "When we pay proceeds" later in this prospectus. AMOUNTS IN THE GUARANTEED INTEREST OPTION. These are generally available for distribution at any time, subject to the provisions of your plan. A deferred payout provision, however, applies to trustee-directed employer plans which are terminating their RIA contract. Under that provision, we can defer payment of the employer plan balance held in the guaranteed interest option, less the contingent withdrawal charge, by paying out the balance in six installments over five years. During the deferred payout period, we credit the balances upon which we defer payment with the current interest rate declared for each year. We also continue to deduct the ongoing operations fee monthly from the balance during the deferred payout period. When we impose the deferred payout provision, any trustee-directed employer plan benefits becoming due during the deferred payout period will not be paid from the employer plan balance in the guaranteed interest option. If, however, sufficient funds are available, the benefits would be paid from the new funding vehicle for the trustee-directed employer plan. Participant-directed employer plans are not subject to the deferred payout provision. ILLUSTRATION OF DEFERRED PAYOUT PROVISION
------------------------------------------------------------------------------------------------------------------------- TRANSACTION DATE END OF YEAR 1 END OF YEAR 2 END OF YEAR 3 ------------------------------------------------------------------------------------------------------------------------- guaranteed interest option Balance 1 Balance 2 Balance 3 Plan Assets + Interest + Interest + Interest - Withdrawal Charge - Operations Fee - Operations Fee - Operations Fee ----------------- -------------- -------------- -------------- Distribution Amount 1 Distribution Amount 2 Distribution Amount 3 Distribution Amount 4 Dist. Amt. 1 Dist. Amt. 2 Dist. Amt. 3 Dist. Amt. 4 --------------- = 1st Payment -------------- = 2nd Payment -------------- = 3rd Payment -------------- = 4th Payment 6 5 4 3 Dist. Amount 1 Dist. Amount 2 Dist. Amount 3 Dist. Amount 4 - 1st Payment - 2nd Payment - 3rd Payment - 4th Payment --------------- -------------- -------------- -------------- Balance 1 (right arrow) Balance (right arrow) Balance (right arrow) Balance (right arrow)
------------------------------------------------- END OF YEAR 4 END OF YEAR 5 ------------------------------------------------- Balance 4 Balance 5 + Interest + Interest - Operations Fee - Operations Fee -------------- -------------- Distribution Amount 5 Final Distribution Dist. Amt. 5 -------------- = 5th Payment 2 Dist. Amount 5 - 5th Payment -------------- Balance (right arrow)
-------------------------------------------------------------------------------- 29 DISTRIBUTIONS 7. Optional participant recordkeeping services -------------------------------------------------------------------------------- SERVICES PROVIDED. If you elected the participant recordkeeping services program ("PRS"), we: . establish an individual participant account for each participant covered by your plan based on data you provide; . receive and deposit contributions on behalf of participants to individual participant accounts; . maintain records reflecting, for each participant, contributions, transfers, loan transactions, withdrawals and investment experience and interest accrued, as applicable, on an individual participant's proportionate values in the plan; . provide to you individual participant's reports reflecting the activity in the individual participant's proportionate interest in the plan; and . process transfers and distributions of the participant's portion of his or her share of the employer plan assets among the investment options as you instruct. You are responsible for providing AXA Equitable with required information and for complying with our procedures relating to the PRS program. We will not be liable for errors in recordkeeping if the information you provide is not provided on a timely basis or is incorrect. The plan administrator retains full responsibility for the income tax withholding and reporting requirements including required notices to the plan participants, as set forth in the federal income tax rules and applicable Treasury Regulations. INVESTMENT OPTIONS. You must include the guaranteed interest option in the investment options if you select PRS. FEES. We charge an annual fee of $25 per active participant paid in twelve equal monthly installments of $2.08. We deduct the fee from the amounts attributable to each individual participant at the end of each month by means of a reduction of units or a cash withdrawal from the guaranteed interest option. We retain the right to change the fee upon 30 days' notice to the employer. See "Charges and expenses" later in this prospectus. ENROLLMENT. Enrollment of your plan in PRS is no longer available. 30 OPTIONAL PARTICIPANT RECORDKEEPING SERVICES 8. Charges and expenses -------------------------------------------------------------------------------- You will incur two general types of charges under RIA: (1)Charges reflected as reductions in the unit values of the Funds which are recorded as expenses of the Fund. These charges apply to all amounts invested in RIA, including installment payout option payments. (2)Charges stated as a defined percentage or fixed dollar amount and deducted by reducing the number of units in the appropriate Funds and the dollars in the guaranteed interest option. We make no deduction from your contributions for sales expenses. CONTINGENT WITHDRAWAL CHARGE (REDUCES THE NUMBER OF UNITS) We may impose a contingent withdrawal charge ("CWC") against withdrawals made from any of the Funds or the guaranteed interest option at any time up to and including the ninth anniversary of the date on which the employer plan began its participation in RIA. The CWC is designed to recover the unamortized sales and promotion expenses and initial enrollment expenses incurred by us. We will not apply a CWC against amounts withdrawn for the purpose of making benefit distribution payments unless such withdrawals are made (i) on or after the date of discontinuance of an employer plan's participation in RIA or (ii) as a result of a full or partial termination, within the meaning of applicable Internal Revenue Service ("IRS") or court interpretations. We will apply a CWC against amounts withdrawn for purposes of making benefit payments to participants who terminated employment either voluntarily or involuntarily, but only when such terminations are attributable to (i) the employer's merger with another company, (ii) the sale of the employer or (iii) the bankruptcy of the employer which leads to the full or partial termination of the plan or the discontinuance of the employer plan's participation in RIA. We do not apply a CWC on transfers between the investment options. However, we do apply a CWC to withdrawals from RIA for the purpose of transferring to another funding vehicle under the employer plan, unless an officer of AXA Equitable agrees, in writing, to waive this charge. We do not consider withdrawals from RIA for the purpose of paying plan expenses or the premium on a life insurance policy, including one held under the employer plan, to be in-service withdrawals or any other type of benefit distribution. These withdrawals are subject to the CWC. The amount of any CWC is determined in accordance with the rate schedule set forth below. We include outstanding loan balances in the plan's assets for purposes of assessing the CWC.
------------------------------------------------------------- WITHDRAWAL IN PARTICIPATION YEARS CONTINGENT WITHDRAWAL CHARGE ------------------------------------------------------------- 1 or 2 6% of Amount Withdrawn ------------------------------------------------------------- 3 or 4 5% ------------------------------------------------------------- 5 or 6 4% ------------------------------------------------------------- 7 or 8 3% ------------------------------------------------------------- 9 2% ------------------------------------------------------------- 10 and later 0% -------------------------------------------------------------
Benefit distribution payments are those payments that become payable with respect to participants under the terms of the employer plan as follows: 1. as the result of the retirement, death or disability of a participant; 2. as the result of a participant's separation from service as defined under Section 402(d)(4)(A) of the Code; 3. in connection with a loan transaction, if the loan is repaid in accordance with its terms; 4. as a minimum distribution pursuant to Section 401(a)(9) of the Code; 5. as a hardship withdrawal pursuant to Section 401(k) of the Code; 6. pursuant to a qualified domestic relations order ("QDRO") under Section 414(p) of the Code, but only if the QDRO specifically requires that the plan administrator withdraw amounts for payment to an alternate payee; 7. as a result of an in-service withdrawal attributable to the after-tax contributions of a participant; or 8. as a result of an in-service withdrawal from a profit-sharing plan after meeting a minimum number of years of service and/or participation in the plan, and the attainment of a minimum age specified in the plan. Prior to any withdrawal from RIA for benefit distribution purposes, AXA Equitable reserves the right to receive from the employer and/or trustees of the plan, evidence satisfactory to it that such benefit distribution conforms to at least one of the types mentioned above. ANNUITY ADMINISTRATIVE CHARGE If a participant elects an annuity payout option, we deduct a $175 charge from the amount used to purchase the annuity. This charge reimburses us for administrative expenses associated with processing the application for the annuity and issuing each month's annuity payment. LOAN FEE We charge a loan fee in an amount equal to 1% of the amount withdrawn as loan principal on the date the plan loan is made. 31 CHARGES AND EXPENSES ONGOING OPERATIONS FEE (REDUCES THE NUMBER OF UNITS) The ongoing operations fee is based on the combined net balances (including any outstanding loan balance) of an employer plan in the investment options at the close of business on the last business day of each month. The amount of the ongoing operations fee is determined under the rate schedule that applies to the employer plan. Unless you make other arrangements, we deduct the charge from employer plan balances at the close of business on the last business day of the following month. Set forth below is the rate schedule for employer plans which adopted RIA after February 9, 1986. Information concerning the rate schedule for employer plans that adopted RIA on or before February 9, 1986 is included in the SAI under "Additional information about RIA."
------------------------------------------------------------- COMBINED BALANCE OF INVESTMENT OPTIONS MONTHLY RATE ------------------------------------------------------------- First $ 150,000 1/12 of 1.25% ------------------------------------------------------------- Next $ 350,000 1/12 of 1.00% ------------------------------------------------------------- Next $ 500,000 1/12 of 0.75% ------------------------------------------------------------- Next $1,500,000 1/12 of 0.50% ------------------------------------------------------------- Over $2,500,000 1/12 of 0.25% -------------------------------------------------------------
The ongoing operations fee is designed to cover such expenses as contract underwriting and issuance for employer plans, employer plan-level recordkeeping, processing transactions and benefit distributions, administratively maintaining the investment options, commissions, promotion of RIA, administrative costs (including certain enrollment and other servicing costs), systems development, legal and technical support, product and financial planning and part of our general overhead expenses. Administrative costs and overhead expenses include such items as salaries, rent, postage, telephone, travel, office equipment and stationery, and legal, actuarial and accounting fees. ADMINISTRATIVE CHARGE FOR CERTAIN OF THE FUNDS OF SEPARATE ACCOUNT NO. 66 (REFLECTED IN THE UNIT VALUES) We make a daily charge at an annual rate of 0.05% of the assets invested in certain of the Funds of Separate Account No. 66 as indicated under the "Fee Table" earlier in this prospectus. The charge is designed to reimburse us for our costs in providing administrative services in connection with the contracts. INVESTMENT MANAGEMENT AND ACCOUNTING FEES (REFLECTED IN THE UNIT VALUES) The computation of unit values for the AllianceBernstein Common Stock, AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds reflects fees we charge for investment management and accounting. The investment management and accounting fee covers AllianceBernstein's investment management and our financial accounting services provided to these Funds, as well as portion of our related administrative costs. The portion of the fee attributable to investment management services is retained by AllianceBernstein. We receive fees for financial accounting and administrative services we provide for these Funds. The fees shown in the Fee Table represent the fees incurred by the Funds during the fiscal year ended December 31, 2015. The fees may be higher or lower based on the expenses incurred by the Funds during the fiscal year ended December 31, 2016. DIRECT OPERATING AND OTHER EXPENSES (REFLECTED IN THE UNIT VALUES) In addition to the investment management and accounting fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain expenses related to the ongoing operations of the Funds. The fees shown in the Fee Table represent the fees incurred by the Funds during the fiscal year ended December 31, 2015. The fees may be higher or lower based on the expenses incurred by the Funds during the fiscal year ended December 31, 2016. PARTICIPANT RECORDKEEPING SERVICES CHARGE The PRS is an optional service. If you elected this service, we charge a per participant annual fee of $25. We deduct this fee on a monthly basis at the rate of $2.08 per participant. We determine the amount of the fee for an employer plan at the close of business on the last business day of each month based on the number of participants enrolled with us at that time. Unless you make other arrangements, we deduct this fee from the balances attributable to each participant in the investment options at the close of business on the last business day of the following month. The PRS fee covers expenses incurred for establishing and maintaining individual records, issuing statements and reports for individual employees and employer plans, and processing individual transactions and benefit distributions. We are not responsible for reconciling participants' individual account balances with the entire amount of the employer plan where we do not maintain individual account balances. OTHER BILLING ARRANGEMENTS The ongoing operations and participant recordkeeping services fees can be paid by a direct billing arrangement we have with the employer subject to a written agreement between AXA Equitable and the employer. ANNUAL PORTFOLIO OPERATING EXPENSES (INDIRECT EXPENSES BORNE BY THE FUNDS) The Funds that invest in portfolios of the Trusts are indirectly subject to investment advisory and other expenses charged against assets of their corresponding portfolios. These expenses are described in the prospectuses for the Trusts. PORTFOLIO OPERATING EXPENSES (DEDUCTED BY THE TRUSTS) The Trusts deduct the following types of fees and expenses: . Investment management fees. . 12b-1 fees (see "More information" later in this prospectus). . Operating expenses, such as trustees' fees, independent auditors' fees, legal counsel fees, administrative service fees, custodian fees, and liability insurance. . Investment-related expenses, such as brokerage commissions. These expenses are reflected in the daily share price of each Portfolio. For more information about the calculation of these expenses, including applicable expense limitations, please refer to the prospectus of the Trust. 32 CHARGES AND EXPENSES CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES We deduct a charge designed to approximate certain taxes that may be imposed on us, such as premium taxes in your state. Generally, we deduct the charge from the amount applied to provide an annuity payout option. The current tax charge that might be imposed by us varies by state and ranges from 0% to 1%. GENERAL INFORMATION ON FEES AND CHARGES We reserve the right (1) to change from time to time the charges and fees described in this prospectus upon prior notice to the employer and (2) to establish separate fee schedules for requested non-routine administrative services and for newly scheduled services not presently contemplated under the contracts. 33 CHARGES AND EXPENSES 9. Tax information -------------------------------------------------------------------------------- In this section, we briefly outline current federal income tax rules relating to the adoption of the program, contributions to the program and distributions to participants under qualified retirement plans. Federal income tax rules include the United States laws in the Internal Revenue Code, Treasury Department Regulations and Internal Revenue Service ("IRS") interpretations of the Internal Revenue Code. Employer retirement plans that may qualify for tax-favored treatment are governed by the provisions of the Code and ERISA. The Code is administered by the IRS. ERISA is administered primarily by the DOL. Provisions of the Code and ERISA include requirements for various features including: . participation, vesting and funding; . nondiscrimination; . limits on contributions and benefits; . distributions; . penalties; . duties of fiduciaries; . prohibited transactions; and . withholding, reporting and disclosure. IT IS THE RESPONSIBILITY OF THE EMPLOYER, PLAN TRUSTEE AND PLAN ADMINISTRATOR TO SATISFY THE REQUIREMENTS OF THE CODE AND ERISA. This prospectus does not provide detailed tax or ERISA information. The following discussion briefly outlines the Code provisions relating to contributions to and distributions from certain tax-qualified retirement plans, although some information on other provisions is also provided. Various tax disadvantages, including penalties, may result from actions that conflict with requirements of the Code or ERISA, and regulations or other interpretations thereof. In addition, federal tax laws and ERISA are continually under review by the Congress, and any changes in those laws, or in the regulations pertaining to those laws, may affect the tax treatment of amounts contributed to tax-qualified retirement plans or the legality of fiduciary actions under ERISA. These tax rules may change without notice. We cannot predict whether, when, or how these rules could change. Any change could affect annuity contracts purchased before the change. Congress may also consider proposals in the future to comprehensively reform or overhaul the United States tax and retirement systems, which if enacted, could affect the tax benefits of an annuity contract. We cannot predict, what, if any, legislation will actually be proposed or enacted that may affect annuity contracts. Certain tax advantages of tax-qualified retirement plans may not be available under certain state and local tax laws. This outline does not discuss the effect of any state or local tax laws. It also does not discuss the effect of federal estate and gift tax laws (or state and local estate, or federal income tax and withholding rules for non-U.S. tax-payers, inheritance and other similar tax laws). Rights or values under plans or contracts or payments under the contracts, for example, amounts due to beneficiaries, may be subject to gift or estate taxes. You should not rely only on this document, but should consult your tax adviser before your purchase. This outline assumes that the participant does not participate in any other qualified retirement plan. Finally, it should be noted that many tax consequences depend on the particular jurisdiction or circumstances of a participant or beneficiary. We cannot provide detailed information on all tax aspects of the plans or contracts. Moreover, the tax aspects that apply to a particular person's plan or contract may vary depending on the facts applicable to that person. The provisions of the Code and ERISA are highly complex. For complete information on these provisions, as well as all other federal, state, local and other tax considerations, qualified legal and tax advisers should be consulted. FOREIGN ACCOUNT TAX COMPLIANCE ACT ("FATCA") The Foreign Account Tax Compliance Act ("FATCA"), which applies to certain U.S.-source payments, may require AXA Equitable and its affiliates to obtain specified documentation of an entity's status before payment is made in order to avoid punitive 30% FATCA withholding. The FATCA rules are initially directed at foreign entities, and may presume that various U.S. entities are "foreign" unless the U.S. entity has documented its U.S. status by providing Form W-9. Also, in future years FATCA and related rules may require us to document the status of certain contractholders, as well as report contract values and other information for such contractholders. For this reason AXA Equitable and its 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. BUYING A CONTRACT TO FUND A RETIREMENT ARRANGEMENT Annuity contracts can be purchased in connection with retirement plans qualified under Code Section 401. You should be aware that the funding vehicle for a qualified arrangement does not provide any tax deferral benefit beyond that already provided by the Code for all permissible funding vehicles. Before choosing an annuity contract, therefore, one should consider the annuity's features and benefits, such as the selection of investment funds and guaranteed interest option and choices of pay-out options, as well as the features and benefits of other permissible funding vehicles and the relative costs of annuities and other arrangements. You should be aware that cost may vary depending on the features and benefits made available and the charges and expenses of the investment options or funds that you select. 34 TAX INFORMATION IMPACT OF TAXES TO AXA EQUITABLE Under existing federal income tax law, no taxes are payable on investment income and capital gains of the Funds that are applied to increase the reserves under the contracts. Accordingly, AXA Equitable does not anticipate that it will incur any federal income tax liability attributable to income allocated to the variable annuity contracts participating in the Funds and it does not currently impose a charge for federal income tax on this income when it computes unit values for the Funds. If changes in federal tax laws or interpretations thereof would result in AXA Equitable being taxed, then AXA Equitable may impose a charge against the Funds (on some or all contracts) to provide for payment of such taxes. AXA Equitable is 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 AXA Equitable is the owner of the assets from which tax benefits may be derived. CERTAIN RULES APPLICABLE TO PLANS DESIGNED TO COMPLY WITH SECTION 404(C) OF ERISA Section 404(c) of ERISA, and the related DOL regulation, provide that if a plan complies with that subsection and its regulations, and if a plan participant or beneficiary exercises control over the assets in his or her plan account, plan fiduciaries will not be severally liable for any loss that is the direct and necessary result of the plan participant's or beneficiary's exercise of control. The plan participant can make and is responsible for the results of his or her own investment decisions. Plans that comply with Section 404(c) must provide, among other things, a broad range of investment choices to plan participants and beneficiaries and must provide such plan participants and beneficiaries with enough information to make informed investment decisions. Compliance by the plan sponsor with the Section 404(c) and its regulation is completely voluntary. The RIA Program provides employer plans with the broad range of investment choices and information needed to meet the requirements of Section 404(c) and its regulation. If it is the intention of the plan's sponsor to meet the requirement of Section 404(c), it is the plan's sponsor's responsibility to comply with the requirements of the regulation. AXA Equitable and its agents shall not be responsible if a plan fails to meet the requirements of Section 404(c). 35 TAX INFORMATION 10. More information -------------------------------------------------------------------------------- ABOUT CHANGES OR TERMINATIONS AMENDMENTS. The contracts have been amended in the past and we and the trustee under the Master Trust Agreement may agree to amendments in the future. No future change can affect annuity benefits in the course of payment. If certain conditions are met, we may: (1) terminate the offer of any of the investment options and (2) offer new investment options with different terms. We may unilaterally amend or modify the contracts or the Master Retirement Trust without the consent of the employer or plan sponsor, as the case may be, in order to keep the contracts or the Master Retirement Trust in compliance with law. TERMINATION. We can discontinue offering RIA at any time. Discontinuance of RIA would not affect annuities in the course of payment, but we would not accept further contributions. The employer may elect to maintain investment options balances with us to provide annuity benefits in accordance with the terms of the contracts. The employer may elect to discontinue the participation of the employer plan in RIA at any time upon advance written notice to us. We may elect, upon written notice to the employer, to discontinue the participation of the employer plan in RIA if (1) the employer fails to comply with any terms of the Master Retirement Trust, (2) the employer fails to make the required minimum contributions, (3) as may be agreed upon in writing between AXA Equitable and the employer if the plan fails to maintain minimum amounts of Funds invested in RIA, or (4) the employer fails to comply with any representations and warranties made by the employer, trustees or employer plan to AXA Equitable in connection with the employer plan's participation in RIA. At any time on or after the participation of the employer in RIA has been discontinued, we may withdraw the entire amount of the employer plan assets held in the investment options, and pay them to the trustee of the employer plan, subject to our right to defer payout of amounts held in the guaranteed interest option, less any applicable charges and fees and outstanding loan balances. IRS DISQUALIFICATION If your plan is found not to qualify under the Code, we can terminate your participation under RIA. In this event, we will withdraw the employer plan balances from the investment options, less applicable charges and fees and any outstanding loan balances, and pay the amounts to the trustees of the plan. ABOUT THE SEPARATE ACCOUNTS Each Fund is one, or part of one, of our separate accounts. We established the separate accounts under 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 Funds for owners of our variable annuity contracts, including our group annuity contracts. The results of each separate account's operations are accounted for without regard to AXA Equitable's, or any other separate account's, operating results. We are the legal owner of all of the assets in the separate accounts and may withdraw any amounts we have in the separate accounts that exceed our reserves and other liabilities under variable annuity contracts. The amount of some of our obligations under the contracts is based on the assets in the separate accounts. However, the obligations themselves are obligations of AXA Equitable. We reserve the right to take certain actions in connection with our operations and the operations of the Funds as permitted by applicable law. If necessary, we will seek approval by participants in RIA. We established the AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds in 1969, and AllianceBernstein Balanced Fund in 1979. We established Separate Account No. 66, which holds the other Funds offered under the contract, in 1997. AXA Equitable is not required to register, and is not registered, as an investment company under the Investment Company Act of 1940. Because of exclusionary provisions, none of the Funds is subject to regulation under the Investment Company Act of 1940, as amended ("1940 Act"). The Trusts' shares are purchased by Separate Account No. 66. ABOUT THE TRUSTS AXA Premier VIP Trust and EQ Advisors Trust 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. AXA Equitable Funds Management Group, LLC (AXA FMG) serves as the investment manager of the Trusts. As such, AXA FMG oversees the activities of the investment advisers with respect to the Trusts and is responsible for retaining or discontinuing the services of those advisers. The Trusts do not impose sales charges or "loads" for buying and selling their shares. All dividends and other distributions on Trust 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. ABOUT THE GENERAL ACCOUNT Our general obligations and any guaranteed benefits under the contract, including those that apply to the guaranteed interest options, are supported by AXA Equitable's general account and are subject to 36 MORE INFORMATION 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 contract 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 Funds. 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. 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, however, may be subject to certain provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. WHEN WE PAY PROCEEDS Ordinarily we will apply proceeds to an annuity and make payments or withdrawals out of the investment options promptly after the date of the transaction. However, we can defer payments, apply proceeds to an annuity and process withdrawals from the Funds for any period during which: (1)the New York Stock Exchange is closed or restricts trading, (2)the SEC determines that an emergency exists as a result of which sales of securities or determination of fair value of a variable investment option's assets is not reasonably practicable, or (3)the SEC, by order, permits us to defer payment to protect people remaining in the variable investment options. We may also defer withdrawals from the plan in installments in order to protect the interests of the other contract holder in a Fund. WHEN TRANSACTION REQUESTS ARE EFFECTIVE Transaction requests may be made by the authorized person for the employer plan as shown on our records, in written or facsimile form acceptable to us and signed by the employer. All requests will be effective on the business day we receive a properly completed and signed written or facsimile request for a financial transaction at the RIA service office. Transaction requests received after the end of a business day will be processed the next business day. We will honor your properly completed transaction requests received via facsimile only if we receive a properly completed transaction form. The request form must be signed by an individual who the plan trustees have previously authorized in writing. We are not responsible for determining the accuracy of a transmission and are not liable for any consequences, including but not limited to, investment losses and lost investment gains, resulting from a faulty or incomplete transmission. If your request form is not properly completed, we will contact you within 24 hours of our receipt of your facsimile. We will use our best efforts to acknowledge receipt of a facsimile transmission, but our failure to acknowledge or a failure in your receipt of such acknowledgment will not invalidate your transaction request. If you do not receive acknowledgment of your facsimile within 24 hours, contact the RIA service office at the toll free 800 number. VOTING RIGHTS No voting rights apply to any of the separate accounts or to the guaranteed interest option. We do, however, have the right to vote shares of the Trusts held by the Funds. If a Trust holds a meeting of shareholders, we will vote shares of the portfolios of the Trusts allocated to the corresponding Funds in accordance with instructions received from employers, participants or trustees, as the case may be. Shares will be voted in proportion to the voter's interest in the Funds holding the shares as of the record date for the shareholders meeting. We will vote the shares for which no instructions have been received in the same proportion as we vote shares for which we have received instructions. Employers, participants or trustees will receive: (1) periodic reports relating to each Trust and (2) proxy materials, together with a voting instruction form, in connection with shareholder meetings. One effect of proportional voting is that a small number of contract owners may determine the outcome of a vote. The Trusts sell their shares to AXA Equitable separate accounts in connection with AXA Equitable's variable annuity and/or life insurance products, and to separate accounts of insurance companies, both affiliated and unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust also sell their shares to the trustee of a qualified plan for AXA Equitable. We currently do not foresee any disadvantages to our contractowners 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 contract owners, we will see to it that appropriate action is taken to do so. CYBERSECURITY We rely heavily on interconnected computer systems and digital data to conduct our variable product business. Because our variable 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 release of confidential customer information. Such systems failures and cyber-attacks affecting us, any third party administrator, the underlying funds, intermediaries and other 37 MORE INFORMATION affiliated or third-party service providers may adversely affect us and your Contract Value. For instance, systems failures and cyber-attacks may interfere with our processing of contract transactions, including the processing of orders from our website or with the underlying funds, impact our ability to calculate account unit values, 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 Contract to lose value. There can be no assurance that we or the underlying funds or our service providers will avoid losses affecting your Contract due to cyber-attacks or information security breaches in the future. ABOUT 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 contract owner's interest in the separate accounts, nor would any of these proceedings be likely to have a material adverse effect upon the separate accounts, our ability to meet our obligations under RIA, or the distribution of group annuity contract interests under RIA. FINANCIAL STATEMENTS The financial statements of Separate Accounts 3, 4, 10, and 66, as well as the consolidated financial statements of AXA Equitable, are in the SAI. The financial statements of AXA Equitable have relevance to the contracts only to the extent that they bear upon the ability of AXA Equitable to meet its obligations under the contracts. The SAI is available free of charge. You may request one by writing to our processing office or calling 1-800-967-4560. ABOUT THE TRUSTEE As trustee, Reliance Trust Company serves as a party to the group annuity contracts. It has no responsibility for the administration of RIA or for any distributions or duties under the group annuity contracts. REPORTS WE PROVIDE AND AVAILABLE INFORMATION We send the employer a report each quarter that shows transactions in the investment options during the quarter for the employer plan, the number of units in the Funds credited to the employer plan, the unit values and the balances in all of the investment options as of the end of the quarter. The employer automatically receives a confirmation notice following the processing of a financial investment option transaction. The employer will also receive an annual report and a semiannual report containing financial statements of the Funds and a list of the Funds' or Trust's portfolio securities. The registration statement, including this prospectus and the SAI, can be obtained from the SEC's website at www.sec.gov. ACCEPTANCE AND RESPONSIBILITIES The employer or plan sponsor, as the case may be, was solely responsible for determining whether RIA is a suitable funding vehicle and entered into a participation or installation agreement with us. Our duties and responsibilities are limited to those described in this prospectus. Except as explicitly set forth in the PRS program, we do not provide administrative services in connection with an employer plan. In addition, no financial professional or firm operated by a financial professional is authorized to solicit or agree to perform plan administrative services in his capacity as a financial professional. If an employer or trustee engages a financial professional to provide administrative support services to an employer plan, the employer or trustee engages that financial professional as its representative rather than AXA Equitable's. WE ARE NOT LIABLE TO ANY EMPLOYER, TRUSTEE OR EMPLOYER PLAN FOR ANY DAMAGES ARISING FROM OR IN CONNECTION WITH ANY PLAN ADMINISTRATION SERVICES PERFORMED OR AGREED TO BE PERFORMED BY A FINANCIAL PROFESSIONAL. ABOUT REGISTERED UNITS This prospectus relates to our offering of units of interest in the Funds that are registered under the 1933 Act. Financial data and other information contained in this prospectus may refer to such "registered units," as offered in the RIA program. We also offer units under RIA to retirement plans maintained by corporations or governmental entities (collectively, "corporate plans"). However, because of an exemption under the 1933 Act, these corporate plan units are not registered under the 1933 Act or covered by this prospectus. ASSIGNMENT AND CREDITORS' CLAIMS Employers and plan participants cannot assign, sell, alienate, discount or pledge as collateral for a loan or other obligation to any party the employer plan balances and rights under RIA, except to the extent allowed by law for a QDRO as that term is defined in the Code. (This reference to a loan does not apply to a loan under RIA.) Proceeds we pay under our contracts cannot be assigned or encumbered by the payee. We will pay all proceeds under our contracts free from the claims of creditors to the extent allowed by law. DISTRIBUTION OF THE CONTRACTS The contracts are distributed by AXA Advisors, LLC ("AXA Advisors"). AXA Advisors serves as a principal underwriter of Separate Accounts 3, 4, 10 and 66. The offering of the contracts is intended to be continuous. AXA Advisors is an affiliate of AXA Equitable. AXA Advisors is under the common control of AXA Financial, Inc. Its principal business address is 1290 Avenue of the Americas, New York, NY 10104. It is registered with the SEC as a broker-dealer and is a member of the Financial Industry Regulatory Authority, Inc. ("FINRA"). AXA Advisors is also a distributor for other AXA Equitable life and annuity products. As of July 9, 2003 the RIA contract is no longer offered as a funding vehicle to new employer plans; however, we continue to support existing RIA contracts, and new participants may continue to be enrolled under existing RIA plans. AXA Equitable pays compensation to AXA Advisors based on contracts sold. AXA Equitable may also make additional payments to AXA Advisors. 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 38 MORE INFORMATION contracts, none of the compensation paid to AXA Advisors are imposed as separate fees or charges under your contract. AXA Equitable, however, intends to recoup amounts it pays for distribution and other services through the fees and charges of the contract and payments it receives for providing administrative, distribution and other services to the portfolios. For information about the fees and charges under the contract, see "Fee table" and "Charges and expenses" earlier in this prospectus. AXA ADVISORS COMPENSATION. AXA Equitable pays compensation to AXA Advisors based on contributions made on the contracts sold through AXA Advisors ("contribution-based compensation"). The contribution-based compensation will generally not exceed 6.0% of total contributions. AXA Advisors, in turn, may pay a portion of the contribution-based compensation received from AXA Equitable to the AXA Advisors financial professional servicing the contract. The compensation paid by AXA Advisors varies among financial professionals. AXA Advisors also pays a portion of the compensation it receives to its managerial personnel. 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 sales bonuses (based on selling certain products during specified periods) and persistency bonuses. AXA Advisors may offer sales incentive programs to financial professionals who meet specified production levels for the sales of both AXA Equitable contracts and contracts 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 contribution-based compensation and/or asset-based compensation for the sale of an AXA Equitable contract than it pays for the sale of a contract or other financial product issued by a company other than AXA Equitable. 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 contracts. Managers earn higher compensation (and credits toward awards and bonuses) if the financial professionals they manage sell a higher percentage of AXA Equitable contracts than products issued by other companies. Other forms of compensation provided to its financial professionals include health and retirement benefits, expense reimbursements, marketing allowances and contribution-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 contracts 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 contract over a contract or other financial product issued by a company not affiliated with AXA Equitable. However, under applicable rules of FINRA, AXA Advisors financial professionals may only recommend to you products that they reasonably believe are suitable for you 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. COMMISSIONS AND SERVICE FEES WE PAY Financial professionals who assisted in establishing employer plans in RIA and who are providing necessary services (not including record-keeping services) are entitled to receive commissions and service fees from us as stated above. Such commissions and fees are not in addition to the fees and charges we describe in "Charges and expenses" earlier in this prospectus. Any service fees we pay to financial professionals are contingent upon their providing service satisfactory to us. While the charges and expenses that we receive from a RIA employer plan initially may be less than the commissions and service fees we pay to financial professionals, we expect that over time those charges and expenses we collect will be adequate to cover all of our expenses. CERTAIN RETIREMENT PLANS THAT USE RIA MAY ALLOW EMPLOYER PLAN ASSETS TO BE USED IN PART TO BUY LIFE INSURANCE POLICIES RATHER THAN APPLYING ALL OF THE CONTRIBUTIONS TO RIA. Financial professionals will receive commissions on any such AXA Equitable insurance policies at standard rates. These commissions are subject to regulation by state law and are at rates higher than those applicable to commissions payable for placing an employer plan under RIA. 39 MORE INFORMATION Appendix I: Condensed financial information -------------------------------------------------------------------------------- These selected per unit data and ratios for the years ended December 31, 2006 through 2015 have been derived from the financial statements audited by PricewaterhouseCoopers LLP, independent registered public accounting firm. The financial statements of each of the Funds as well as the consolidated financial statements of AXA Equitable are contained in the SAI. Information is provided for the period that each Fund has been available under RIA, but not longer than ten years. SEPARATE ACCOUNT NO. 10 -- POOLED (ALLIANCEBERNSTEIN BALANCED FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
------------------------------------------------------------------------------------------------------------------------ YEAR ENDED DECEMBER 31, ------ ----------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------------ Income $7.39 $7.89 $6.55 $6.55 $6.27 $7.35 $5.86 $7.87 $7.46 $6.02 Expenses (Note B) (1.81) (1.76) (1.84) (1.60) (1.31) (1.17) (0.91) (1.22) (1.70) (1.72) ----------------------------------------------------------------------------------------------------------------------- Net investment income 5.58 6.13 4.71 4.95 4.96 6.18 4.95 6.65 5.76 4.30 Net realized and unrealized gain (loss) on investments (Note C) (5.40) 6.23 33.99 23.05 (6.02) 13.61 33.18 (71.10) 4.91 15.38 ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value 0.18 12.36 38.70 28.00 (1.06) 19.79 38.13 (64.45) 10.67 19.68 AllianceBernstein Balanced Fund unit value (Note A): Beginning of Period 293.46 281.10 242.40 214.40 215.46 195.67 157.54 221.99 211.32 191.64 ----------------------------------------------------------------------------------------------------------------------- End of Period $293.64 $293.46 $281.10 $242.40 $214.40 $215.46 $195.67 $157.54 $221.99 $211.32 ======================================================================================================================= Ratio of expenses to average net assets (Note B) 0.63% 0.61% 0.71% 0.71% 0.63% 0.60% 0.55% 0.63% 0.77% 0.87% Ratio of net investment income to average net assets 1.87% 2.11% 1.80% 2.19% 2.25% 3.11% 2.92% 3.35% 2.63% 2.16% Number of units outstanding at end of period 639 1,171 1,214 1,221 1,416 2,056 2,661 3,500 4,677 5,618 Portfolio turnover rate (Note D) 143% 111% 111% 94% 84% 83% 94% 61% 105% 146% =======================================================================================================================
See Notes following tables. I-1 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 4 -- POOLED (ALLIANCEBERNSTEIN COMMON STOCK FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
------------------------------------------------------------------------------------------------------------------------ YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------------ Income $24.97 $22.90 $19.56 $17.96 $13.24 $14.68 $9.85 $5.33 $5.67 $5.26 Expenses (Note B) (2.45) (2.00) (2.25) (1.07) (1.38) (1.07) (1.56) (3.55) (4.40) (3.91) ----------------------------------------------------------------------------------------------------------------------- Net investment income (loss) 22.52 20.90 17.31 16.89 11.86 13.61 8.29 1.78 1.27 1.35 Net realized and unrealized gain (loss) on investments (Note C) 62.37 150.13 314.47 119.78 17.85 111.36 189.22 (372.58) 103.15 (5.90) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value 84.89 171.03 331.78 136.67 29.71 124.97 197.51 (370.80) 104.42 (4.55) AllianceBernstein Common Stock Fund unit value (Note A): Beginning of Period 1,501.17 1,330.14 998.36 861.69 831.98 707.01 509.50 880.30 775.88 780.43 ----------------------------------------------------------------------------------------------------------------------- End of Period $1,586.06 $1,501.17 $1,330.14 $998.36 $861.69 $831.98 $707.01 $509.50 $880.30 $775.88 ======================================================================================================================= Ratio of expenses to average net assets (Note B) 0.16% 0.14% 0.20% 0.11% 0.16% 0.15% 0.27% 0.51% 0.53% 0.52% Ratio of net investment income (loss) to average net assets 1.45% 1.49% 1.52% 1.77% 1.37% 1.89% 1.43% 0.25% 0.15% 0.17% Number of units outstanding at end of period 264 414 479 709 780 921 1,449 1,543 1,664 2,058 Portfolio turnover rate (Note D) 19% 16% 17% 21% 19% 30% 118% 106% 60% 55% =======================================================================================================================
See Notes following tables. I-2 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 3 -- POOLED (ALLIANCEBERNSTEIN MID CAP GROWTH FUND) OF AXA EQUITABLE LIFE INSURANCE COMPANY INCOME, EXPENSES AND CAPITAL CHANGES PER REGISTERED UNIT OUTSTANDING DURING THE PERIODS INDICATED AND OTHER SUPPLEMENTARY DATA (NOTE E)
------------------------------------------------------------------------------------------------------------------------- YEAR ENDED DECEMBER 31, -------------------------------------------------------------------------------- 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 ------------------------------------------------------------------------------------------------------------------------- Income $2.34 $2.70 $1.84 $1.57 $2.94 $4.03 $1.11 $0.48 $0.61 $1.06 Expenses (Note B) (2.68) (2.66) (2.44) (1.96) (1.89) (1.36) (1.38) (1.37) (1.55) (1.49) ----------------------------------------------------------------------------------------------------------------------- Net investment income (loss) (0.34) 0.04 (0.60) (0.39) 1.05 2.67 (0.27) (0.89) (0.94) (0.43) Net realized and unrealized gain (loss) on investments (Note C) 6.23 10.74 127.67 45.12 7.55 81.33 79.09 (132.73) 33.86 4.67 ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in unit value 5.89 10.78 127.07 44.73 8.60 84.00 78.82 (133.62) 32.92 4.24 AllianceBernstein Mid Cap Growth Fund unit value (Note A): Beginning of Period 518.14 507.36 380.29 335.56 326.96 242.96 164.14 297.76 264.84 260.60 ----------------------------------------------------------------------------------------------------------------------- End of Period $524.03 $518.14 $507.36 $380.29 $335.56 $326.96 $242.96 $164.14 $297.76 $264.84 ======================================================================================================================= Ratio of expenses to average net assets (Note B) 0.53% 0.53% 0.55% 0.54% 0.58% 0.52% 0.72% 0.58% 0.54% 0.57% Ratio of net investment income (loss) to average net assets (0.09)% 0.00% (0.14)% (0.11)% 0.30% 1.00% (0.14)% (0.37)% (0.32)% (0.17)% Number of units outstanding at end of period 369 766 769 993 1,042 1,773 1,954 2,130 2,370 3,016 Portfolio turnover rate (Note D) 79% 116% 137% 131% 137% 151% 217% 129% 111% 120% =======================================================================================================================
See Notes following tables. Notes: A. The values for a registered AllianceBernstein Balanced Fund, AllianceBernstein Common Stock Fund and AllianceBernstein Mid Cap Growth Fund unit on January 23, 1985, April 8, 1985 and July 7, 1986, the first date on which payments were allocated to purchase registered units in each Fund, were $28.07, $84.15 and $44.82, respectively. B. Certain expenses under RIA are borne directly by employer plans participating in RIA. Accordingly, those charges and fees discussed in "Charges and expenses" earlier in this prospectus, are not included above and did not affect the Fund unit values. Those charges and fees are recovered by AXA Equitable through an appropriate reduction in the number of units credited to each employer plan participating in the Fund unless the charges and fees are billed directly to and paid by the employer. The dollar amount recovered is included under the caption "From Contractowner Transactions" as administrative fees and asset management fees in the Statement of Changes in Net Assets for each Fund, which appear in the Financial Statements in the SAI. As of June 1, 1994, the annual investment management and financial accounting fee is deducted from the assets of the AllianceBernstein Balanced Fund, AllianceBernstein Common Stock Fund and AllianceBernstein Mid Cap Growth Fund and is reflected in the computation of their unit values. C. See Note 2 to Financial Statements of Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 (Pooled) which appear in the SAI. D. The portfolio turnover rate excludes all short-term U.S. Government securities and all other securities whose maturities at the time of acquisition were one year or less. The rate stated is the annual turnover rate for the entire Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled). E. Income, expenses, gains and losses shown above pertain only to employer plans' accumulations attributable to RIA registered units. Other plans and trusts also participate in Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled) and may have operating results and other supplementary data different from those shown above. I-3 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING
---------------------------------------------------------------------------------------------------------------- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ---------------------------------------------------------------------------------------------------------------- AXA GLOBAL EQUITY MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $408.83 $580.61 $247.64 $371.61 $414.17 $363.17 $424.84 $511.33 $519.96 $510.99 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- AXA INTERNATIONAL CORE MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $147.17 $169.57 $ 93.51 $126.55 $138.22 $114.82 $133.55 $156.95 $147.16 $140.77 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- AXA INTERNATIONAL VALUE MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $169.44 $186.71 $106.43 $138.63 $147.04 $123.27 $144.80 $172.79 $160.39 $155.32 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 72 71 19 18 18 18 9 9 9 2 ---------------------------------------------------------------------------------------------------------------- AXA LARGE CAP CORE MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $113.19 $117.59 $ 73.61 $ 93.12 $106.33 $101.82 $117.08 $154.03 $171.93 $172.57 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 108 107 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- AXA LARGE CAP GROWTH MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $128.71 $148.82 $ 91.92 $123.96 $141.87 $136.68 $155.46 $210.47 $233.80 $243.24 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 1,469 1,608 1,683 1,870 65 64 63 62 61 53 ---------------------------------------------------------------------------------------------------------------- AXA LARGE CAP VALUE MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $158.83 $151.76 $ 86.50 $104.33 $117.79 $112.13 $129.92 $172.10 $193.15 $185.40 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- 1,498 940 990 437 272 214 211 209 206 ---------------------------------------------------------------------------------------------------------------- AXA MID CAP VALUE MANAGED VOLATILITY ---------------------------------------------------------------------------------------------------------------- Unit value $196.16 $193.03 $116.66 $158.48 $194.08 $175.78 $208.52 $277.49 $307.66 $296.77 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 8 8 8 8 8 7 7 6 6 1 ---------------------------------------------------------------------------------------------------------------- AXA/AB SMALL CAP GROWTH ---------------------------------------------------------------------------------------------------------------- Unit value $190.26 $222.47 $123.37 $167.72 $223.93 $222.92 $257.54 $355.67 $368.20 $357.31 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 61 74 71 96 125 123 136 25 25 -- ---------------------------------------------------------------------------------------------------------------- CHARTER/SM/ MULTI-SECTOR BOND ---------------------------------------------------------------------------------------------------------------- Unit value $215.33 $222.53 $170.57 $187.39 $200.21 $210.78 $221.90 $219.55 $224.68 $223.13 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 14 14 14 14 14 14 -- -- -- -- ---------------------------------------------------------------------------------------------------------------- CHARTER/SM/ SMALL CAP VALUE ---------------------------------------------------------------------------------------------------------------- Unit value $228.94 $206.41 $128.25 $162.14 $201.87 $183.67 $214.47 $306.09 $290.46 $252.31 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 6 6 6 6 6 6 5 5 5 1 ---------------------------------------------------------------------------------------------------------------- EQ/BLACKROCK BASIC VALUE EQUITY ---------------------------------------------------------------------------------------------------------------- Unit value $226.87 $229.55 $145.63 $189.73 $213.04 $206.42 $234.57 $323.07 $354.42 $332.63 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/CALVERT SOCIALLY RESPONSIBLE ---------------------------------------------------------------------------------------------------------------- Unit value $ 98.46 $110.41 $ 60.48 $ 79.16 $ 89.07 $ 89.31 $104.26 $140.06 $159.12 $159.88 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/CAPITAL GUARDIAN RESEARCH ---------------------------------------------------------------------------------------------------------------- Unit value $142.74 $145.10 $ 87.55 $115.09 $133.27 $138.61 $162.73 $214.43 $236.97 $241.50 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------
I-4 APPENDIX I: CONDENSED FINANCIAL INFORMATION SEPARATE ACCOUNT NO. 66 (POOLED) UNIT VALUES AND NUMBER OF REGISTERED UNITS OUTSTANDING (CONTINUED)
---------------------------------------------------------------------------------------------------------------- 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ---------------------------------------------------------------------------------------------------------------- EQ/EQUITY 500 INDEX ---------------------------------------------------------------------------------------------------------------- Unit value $365.64 $384.52 $241.50 $304.57 $349.06 $355.04 $408.92 $537.51 $606.95 $611.49 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 1,190 726 563 481 451 160 11 11 11 9 ---------------------------------------------------------------------------------------------------------------- EQ/INTERMEDIATE GOVERNMENT BOND ---------------------------------------------------------------------------------------------------------------- Unit value $188.96 $202.34 $210.03 $205.66 $214.77 $226.59 $228.69 $224.82 $228.15 $229.01 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/INTERNATIONAL EQUITY INDEX ---------------------------------------------------------------------------------------------------------------- Unit value $207.19 $231.96 $114.54 $145.86 $153.78 $135.29 $157.22 $190.88 $177.62 $173.74 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 2,372 1,578 1,116 1,136 645 323 300 297 294 283 ---------------------------------------------------------------------------------------------------------------- EQ/JPMORGAN VALUE OPPORTUNITIES ---------------------------------------------------------------------------------------------------------------- Unit value $159.01 $157.09 $ 94.61 $125.18 $140.60 $133.25 $154.63 $209.97 $240.15 $234.67 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 412 407 40 40 39 39 -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/LARGE CAP GROWTH INDEX ---------------------------------------------------------------------------------------------------------------- Unit value $ 74.14 $ 84.50 $ 53.85 $ 73.35 $ 85.05 $ 87.06 $ 99.88 $132.32 $148.52 $155.74 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 796 787 831 889 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/MID CAP INDEX ---------------------------------------------------------------------------------------------------------------- Unit value $140.14 $151.40 $ 76.78 $104.63 $131.57 $128.40 $150.33 $199.30 $217.22 $211.01 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------- EQ/MONEY MARKET ---------------------------------------------------------------------------------------------------------------- Unit value $162.84 $170.86 $174.81 $175.24 $175.32 $175.23 $175.14 $175.05 $174.97 $174.88 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 2,598 2,215 136 135 133 14 1 1 1 1 ---------------------------------------------------------------------------------------------------------------- EQ/QUALITY BOND PLUS ---------------------------------------------------------------------------------------------------------------- Unit value $212.99 $223.10 $208.88 $221.89 $236.13 $239.46 $245.70 $239.98 $246.83 $247.26 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 334 330 108 92 91 90 30 29 29 28 ---------------------------------------------------------------------------------------------------------------- EQ/T. ROWE PRICE GROWTH STOCK ---------------------------------------------------------------------------------------------------------------- Unit value -- $ 10.04 $ 5.81 $ 8.28 $ 9.64 $ 9.45 $ 11.24 $ 15.50 $ 16.84 $ 18.56 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- 136 134 133 132 130 116 114 113 20 ---------------------------------------------------------------------------------------------------------------- EQ/WELLS FARGO OMEGA GROWTH ---------------------------------------------------------------------------------------------------------------- Unit value $ 95.85 $106.71 $ 77.26 $108.39 $127.13 $119.67 $144.12 $200.43 $208.05 $210.69 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding -- -- -- -- -- 2 -- -- 1 -- ---------------------------------------------------------------------------------------------------------------- MULTIMANAGER TECHNOLOGY ---------------------------------------------------------------------------------------------------------------- Unit value $130.71 $154.53 $ 81.78 $129.57 $152.51 $145.17 $164.66 $223.26 $253.51 $269.46 ---------------------------------------------------------------------------------------------------------------- Number of units outstanding 486 586 558 636 64 -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------
I-5 APPENDIX I: CONDENSED FINANCIAL INFORMATION Statement of additional information -------------------------------------------------------------------------------- TABLE OF CONTENTS
PAGE Who is AXA Equitable? 2 FUND INFORMATION 2 General 2 Restrictions and requirements of the AllianceBernstein Balanced, 2 AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds Certain investments of the AllianceBernstein Mid Cap Growth and/or 2 AllianceBernstein Balanced Funds Portfolio holdings policy for the Pooled Separate Accounts 3 Brokerage fees and charges for securities transactions 4 ADDITIONAL INFORMATION ABOUT RIA 5 Loan provisions 5 Annuity benefits 6 Amount of fixed-annuity payments 6 Ongoing operations fee 6 MANAGEMENT FOR THE ALLIANCEBERNSTEIN BALANCED, ALLIANCEBERNSTEIN COMMON 7 STOCK AND ALLIANCEBERNSTEIN MID CAP GROWTH FUNDS AND AXA EQUITABLE Funds 7 Portfolio managers' information (AllianceBernstein Balanced Fund, 7 AllianceBernstein Common Stock Fund and AllianceBernstein Mid Cap Growth Fund Investment professional conflict of interest disclosure 11 Portfolio manager compensation 11 Distribution of the contracts 12 Custodian and independent registered public accounting firm 12 AXA Equitable 13 Directors and Principal Officers 13 Directors -- Officers 15 Other Officers 15 Separate Account Units of Interest Under Group Annuity Contracts 19 FINANCIAL STATEMENTS INDEX 20 Financial statements FSA-1
SEND THIS REQUEST FORM TO RECEIVE A STATEMENT OF ADDITIONAL INFORMATION To: AXA Equitable -- RIA Service Office P.O. Box 8095 Boston, MA 02266-8095 ---------------------------------------------------------------------------------- Please send me a Retirement Investment Account(R) SAI for May 1, 2016. ---------------------------------------------------------------------------------- Name ---------------------------------------------------------------------------------- Address ---------------------------------------------------------------------------------- City State Zip ---------------------------------------------------------------------------------- Client number
Retirement Investment Account(R) STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 2016 -------------------------------------------------------------------------------- This statement of additional information ("SAI") is not a prospectus. It should be read in conjunction with the prospectus for our Retirement Investment Account(R) ("RIA"), dated May 1, 2016 ("prospectus"), and any supplements. Terms defined in the prospectus have the same meaning in the SAI unless the context otherwise requires. You can obtain a copy of the prospectus, and any supplements to the prospectus, from us free of charge by writing or calling the RIA service office listed on the back of this SAI, or by contacting your financial professional. Our home office is located at 1290 Avenue of the Americas, New York, N.Y. 10104 and our telephone number is (212) 554-1234. TABLE OF CONTENTS Who is AXA Equitable? 2 FUND INFORMATION 2 General 2 Restrictions and requirements of the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds 2 Certain investments of the AllianceBernstein Mid Cap Growth and/or AllianceBernstein Balanced Funds 2 Portfolio holdings policy for the Pooled Separate Accounts 3 Brokerage fees and charges for securities transactions 4 ADDITIONAL INFORMATION ABOUT RIA 5 Loan provisions 5 Annuity benefits 6 Amount of fixed-annuity payments 6 Ongoing operations fee 6 MANAGEMENT FOR THE ALLIANCEBERNSTEIN BALANCED, ALLIANCEBERNSTEIN COMMON STOCK AND ALLIANCEBERNSTEIN MID CAP GROWTH FUNDS AND AXA EQUITABLE 7 Funds 7 Portfolio managers' information (AllianceBernstein Balanced Fund, AllianceBernstein Common Stock Fund and AllianceBernstein Mid Cap Growth Fund) 7 Investment professional conflict of interest disclosure 11 Portfolio manager compensation 11 Distribution of the contracts 12 Custodian and independent registered public accounting firm 12 AXA Equitable 13 Directors and Principal Officers 13 Officers -- Directors 15 Other Officers 15 Separate Accounts Units of Interest Under Group Annuity Contracts 19 FINANCIAL STATEMENTS INDEX 20 Financial statements FSA-1 Copyright 2016. AXA Equitable Life Insurance Company 1290 Avenue of the Americas, New York, New York 10104. All rights reserved. Retirement Investment Account(R) is a registered service mark of The AXA Equitable Life Insurance Company. SAI 4ACS (5/13) #83789 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 Financial, Inc., which is an indirect wholly owned subsidiary of AXA S.A. ("AXA"), a French holding company for an international group of insurance and related financial services companies. As the ultimate sole shareholder of AXA Equitable, AXA exercises significant influence over the operations and capital structure of AXA Equitable. No company other than AXA Equitable, however, has any legal responsibility to pay amounts that AXA Equitable owes under the contracts. AXA Equitable is solely responsible for paying all amounts owed under your contract. FUND INFORMATION GENERAL In our prospectus we discuss in more detail, among other things, the structure of the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds, their investment objectives and policies, including the types of portfolio securities that they may hold and levels of investment risks that may be involved, and investment management. We also summarize certain of these matters with respect to the Investment Funds and their corresponding portfolios. See "Investment options" in the prospectus. Here we will discuss special restrictions, requirements and transaction expenses that apply to the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds and determination of the value of units for all Funds, including some historical information. You can find information about the investment objectives and policies, as well as restrictions, requirements and risks pertaining to the corresponding AXA Premier VIP Trust or EQ Advisors Trust portfolio in which the Investment Funds invest in the prospectus and SAI for each Trust. RESTRICTIONS AND REQUIREMENTS OF THE ALLIANCEBERNSTEIN BALANCED, ALLIANCEBERNSTEIN COMMON STOCK AND ALLIANCEBERNSTEIN MID CAP GROWTH FUNDS Neither the AllianceBernstein Common Stock Fund nor the AllianceBernstein Balanced Fund will make an investment in an industry if that investment would cause either Fund's holding in that industry to exceed 25% of either Fund's assets. The United States government, and its agencies and instrumentalities, are not considered members of any industry. The AllianceBernstein Balanced Fund and AllianceBernstein Common Stock Fund will not purchase or write puts or calls (options). The AllianceBernstein Mid Cap Growth Fund will not purchase or write puts (options). The following investment restrictions apply to the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds. None of these Funds will: . trade in foreign exchanges (however, the AllianceBernstein Balanced Fund will trade in foreign exchanges, except those that fall into the MSCI Emerging Markets country definition, with respect to the Global Equity sub-portfolio); . trade in commodities or commodity contracts (except the AllianceBernstein Balanced Fund is permitted to enter into hedging transactions through the use of currency forwards, as described in the prospectus); . purchase real estate or mortgages, except as stated below. The Funds may buy shares of real estate investment trusts listed on stock exchanges or reported on the NASDAQ which is now a national stock market exchange; . make an investment in order to exercise control or management over a company; . underwrite the securities of other companies, including purchasing securities that are restricted under the 1933 Act or rules or regulations thereunder (restricted securities cannot be sold publicly until they are registered under the 1933 Act), except as stated below; . make short sales, except when the Fund has, by reason of ownership of other securities, the right to obtain securities of equivalent kind and amount that will be held as long as they are in short position; . have more than 5% of its assets invested in the securities of any one registered investment company. A Fund may not own more than 3% of a registered investment company's outstanding voting securities. The Fund's total holdings of registered investment company securities may not exceed 10% of the value of the Fund's assets; . purchase any security on margin or borrow money except for short-term credits necessary for clearance of securities transactions; . make loans, except loans through the purchase of debt obligations or through entry into repurchase agreements; or . invest more than 10% of its total assets in restricted securities, real estate investments, or portfolio securities not readily marketable (the AllianceBernstein Common Stock Fund will not invest in restricted securities). CERTAIN INVESTMENTS OF THE ALLIANCEBERNSTEIN MID CAP GROWTH AND/OR ALLIANCEBERNSTEIN BALANCED FUNDS The following are brief descriptions of certain types of investments which may be made by the AllianceBernstein Mid Cap Growth and/or AllianceBernstein Balanced Funds and certain risks and investment techniques. MORTGAGE-RELATED SECURITIES. The AllianceBernstein Balanced Fund may invest in mortgage-related securities (including agency and non-agency fixed, ARM and hybrid pass throughs, agency and nonagency CMO's, commercial mortgage-backed securities and dollar rolls). Principal and interest payments made on mortgages in the pools are passed through to the holder of securities. Payment of principal and interest on some mortgage-related securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of the U.S. Government (in the case of securities guaranteed by the Government National Mortgage Association, or "GNMA"), or guaranteed by agencies or instrumentalities of the U.S. 2 Government (in the case of securities guaranteed by the Federal National Mortgage Corporation ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC"), which were until recently supported only by discretionary authority of the U.S. Government to purchase the agency's obligations and are now guaranteed by Preferred Stock Purchase Agreements (each a "PSPA") under which, if the Federal Housing Finance Agency ("FHFA") determines that FNMA's or FHLMC's liabilities have exceeded its assets under Generally Accepted Accounting Principles, the U.S. Treasury will contribute cash capital to the entity in an amount equal to the difference between liabilities and assets. Mortgage-related securities created by non-governmental issuers (such as financial institutions, and other secondary market issuers) may be supported by various forms of insurance or guarantees. COLLATERALIZED MORTGAGE OBLIGATIONS. The AllianceBernstein Balanced Fund may invest in collateralized mortgage obligations ("CMOs"). CMOs are debt obligations that were developed specifically to reallocate the various risks inherent in mortgage-backed securities across various bond classes or tranches. They are collateralized by underlying mortgage loans or pools of mortgage-pass-through securities. They can be issued by both agency (GNMA, FHLMC or FNMA) or non-agency issuers. CMOs are not mortgage pass-through securities. Rather, they are pay-through securities, i.e. securities backed by cash flow from the underlying mortgages. CMOs are typically structured into multiple classes, with each class bearing a different stated maturity and having different payment streams. Monthly payments of principal, including prepayments, are first returned to investors holding the shortest maturity class; investors holding longer maturity classes receive principal payments only after the shorter class or classes have been retired. ASSET-BACKED SECURITIES. The AllianceBernstein Balanced Fund may purchase asset-backed securities. The securitization techniques used to develop mortgage-backed securities are also applied to a broad range of financial assets. Through the use of trusts and special purpose vehicles, various types of assets, including automobile loans and leases, credit card receivables, home equity loans, equipment leases and trade receivables, are securitized in structures similar to the structures used in mortgage securitizations. The AllianceBernstein Balanced Fund may invest in other asset-backed securities that may be developed in the future or as would be deemed appropriate. NON-US DEBT. The AllianceBernstein Balanced Fund may invest in non-U.S. sovereign and corporate debt issued in U.S. Dollars. ZERO COUPON BONDS. The AllianceBernstein Balanced Fund may invest in zero coupon bonds. Such bonds may be issued directly by agencies and instrumentalities of the U.S. Government or by private corporations. Zero coupon bonds may originate as such or may be created by stripping an outstanding bond. Zero coupon bonds do not make regular interest payments. Instead, they are sold at a deep discount from their face value. Because a zero coupon bond does not pay current income, its price can be very volatile when interest rates change. REPURCHASE AGREEMENTS. Repurchase agreements are currently entered into with creditworthy counterparties including broker-dealers, member banks of the Federal Reserve System or "primary dealers" (as designated by the Federal Reserve Bank of New York) in U.S. Government securities. Repurchase agreements are often for short periods such as one day or a week, but may be longer. Investment may be made in repurchase agreements pertaining to the marketable obligations, or marketable obligations guaranteed by the United States Government, its agencies or instrumentalities. DEBT SECURITIES SUBJECT TO PREPAYMENT RISKS. Mortgage-related securities and certain collateralized mortgage obligations, asset-backed securities and other debt instruments in which the AllianceBernstein Balanced Fund may invest are subject to prepayments prior to their stated maturity. The Fund usually is unable to accurately predict the rate at which prepayments will be made, which rate may be affected, among other things, by changes in generally prevailing market interest rates. If prepayments occur, the Fund suffers the risk that it will not be able to reinvest the proceeds at as high a rate of interest as it had previously been receiving. Also, the Fund will incur a loss to the extent that prepayments are made for an amount that is less than the value at which the security was then being carried by the Fund. WHEN-ISSUED AND DELAYED DELIVERY SECURITIES. The AllianceBernstein Mid Cap Growth and AllianceBernstein Balanced Funds may purchase and sell securities on a when-issued or delayed delivery basis. In these transactions, securities are purchased or sold by a Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price or yield to the Fund at the time of entering into the transaction. When a Fund engages in when-issued or delayed delivery transactions, the Fund relies on the other party to consummate the transaction. Failure to consummate the transaction may result in the Fund missing the opportunity of obtaining a price or yield considered to be advantageous. When-issued and delayed delivery transactions are generally expected to settle within three months from the date the transactions are entered into, although the Fund may close out its position prior to the settlement date. The Fund will sell on a forward settlement basis only securities it owns or has the right to acquire. FOREIGN CURRENCY FORWARD CONTRACTS. The AllianceBernstein Balanced Fund may enter into contracts for the purchase or sale of a specific foreign currency at a future date at a price set at the time of the contract. The Fund will enter into such forward contracts for hedging purposes only. HEDGING TRANSACTIONS. The AllianceBernstein Balanced Fund may engage in transactions which are designed to protect against potential adverse price movements in securities owned or intended to be purchased by the Fund. PORTFOLIO HOLDINGS POLICY FOR THE POOLED SEPARATE ACCOUNTS It is the policy of the Pooled Separate Accounts (the "Separate Accounts") to safeguard against misuse of their portfolio holdings information and to prevent the selective disclosure of such information. Each Separate Account will publicly disclose its holdings in accordance with regulatory requirements, such as periodic portfolio disclosure in filings with the SEC. The portfolio holdings information for the Separate Accounts including, among other things, the top ten holdings and complete portfolio holdings, is available on a monthly basis and generally can be obtained by contract holders/participants 3 or their consultants, free of charge, 30 days after the month end by calling 1-800-967-4560. AXA Equitable has established this procedure to provide prompt portfolio holdings information so that contractholders and their consultants can perform effective oversight of plan investments. On a case-by-case basis, AXA Equitable may approve the disclosure of non-public portfolio holdings and trading information to particular individuals or entities in appropriate circumstances. In all cases, the approval of release of non-public portfolio holdings or trading information will be conditioned on the obligation of the recipient to maintain the confidentiality of the information including an obligation not to trade on non-public information. Neither AXA Equitable nor its investment adviser, AllianceBernstein L.P., discloses non-public portfolio holdings or portfolio trade information of any Separate Account to the media. In addition, with the approval of our investment officers, non-public portfolio holdings information may be provided as part of the legitimate business activities of each Separate Account to the following service providers and other organizations: auditors; the custodian; the accounting service provider, the administrator; the transfer agent; counsel to the Separate Accounts; regulatory authorities; pricing services; and financial printers. The entities to whom we or the investment advisor voluntarily provide holdings information, either by explicit agreement or by virtue of their respective duties to each Separate Account, are required to maintain the confidentiality of the information disclosed, including an obligation not to trade on non-public information. As of the date of this SAI, we have ongoing arrangements to provide non-public portfolio holdings information to the following service providers: JPMorgan Chase, State Street-Kansas City, PricewaterhouseCoopers LLP, Capital Printing Systems, Inc., and RR Donnelley. Each of these arrangements provides for ongoing disclosure of current portfolio holdings information so that the entity can provide services to the Separate Accounts. These service providers do not provide any compensation to AXA Equitable, the Separate Accounts or any affiliates in return for the disclosure of non-public portfolio holdings information. Until particular portfolio holdings information has been released in regulatory filings or is otherwise available to contract holders and/or participants, and except with regard to the third parties described above, no such information may be provided to any party without the approval of our investment officers or the execution by such third party of an agreement containing appropriate confidentiality language which has been approved by our Legal Department. Our investment officers will monitor and review any potential conflicts of interest between the contract holders/participants and AXA Equitable and its affiliates that may arise from potential release of non-public portfolio holdings information. We will not release portfolio holdings information unless it is determined that the disclosure is in the best interest of its contract holders/participants and there is a legitimate business purpose for such disclosure. No compensation is received by AXA Equitable or its affiliates or any other person in connection with the disclosure of portfolio holdings information. BROKERAGE FEES AND CHARGES FOR SECURITIES TRANSACTIONS We discuss in the prospectus that AllianceBernstein is the investment manager of the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds. Subject to the broad supervisory authority of the committee, AllianceBernstein invests and reinvests the assets of these Funds in a manner consistent with the policies described in the prospectus. AllianceBernstein also performs portfolio selection and transaction services, including arranging the execution of portfolio transactions. AllianceBernstein is also an adviser for certain portfolios in EQ Advisors Trust and AXA Premier VIP Trust. Information on brokerage fees and charges for securities transactions for the Trusts' portfolios is provided in the prospectus for each Trust. The AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds are charged for securities brokers commissions, transfer taxes and other fees and expenses relating to their operation. Transactions in equity securities for a Fund are executed primarily through brokers which receive a commission paid by the Fund. Brokers are selected by AllianceBernstein. AllianceBernstein seeks to obtain the best price and execution of all orders placed for the portfolio of the Funds, considering all the circumstances. If transactions are executed in the over-the-counter market AllianceBernstein will deal with the principal market makers, unless more favorable prices or better execution is otherwise obtainable. There are occasions on which portfolio transactions for the Funds may be executed as part of concurrent authorizations to purchase or sell the same security for certain other accounts or clients advised by AllianceBernstein. Although these concurrent authorizations potentially can be either advantageous or disadvantageous to the Funds, they are effected only when it is believed that to do so is in the best interest of the Funds. When these concurrent authorizations occur, the objective is to allocate the executions among the accounts or clients in a fair manner. Recently, the increasing number of low-cost automated order execution services have contributed to lower commission rates. These services, often referred to as "low touch" trading, take advantage of the electronic connectivity of market centers, eliminating the need for human intervention and thereby lowering the cost of execution. These services include: 1) direct market access (DMA) options, in which orders are placed directly with market centers, such as NASDAQ or Archipelago; 2) aggregators, which allow access to multiple markets simultaneously; and 3) algorithmic trading platforms, which use complex mathematical models to optimize trade routing and timing. We try to choose only brokers which we believe will obtain the best prices and executions on securities transactions. Subject to this general requirement, we also consider the amount and quality of securities research services provided by a broker. Typical research services include general economic information and analyses and specific information on and analyses of companies, industries and markets. Factors we use in evaluating research services include the diversity of sources used by the broker and the broker's experience, analytical ability and professional stature. 4 The receipt of research services from brokers tends to reduce our expenses in managing the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds. We take this into account when setting the expense charges. Brokers who provide research services may charge somewhat higher commissions than those who do not. However, we will select only brokers whose commissions we believe are reasonable in all the circumstances. We periodically evaluate the services provided by brokers and prepare internal proposals for allocating among those various brokers business for all the accounts we manage or advise. That evaluation involves consideration of the overall capacity of the broker to execute transactions, its financial condition, its past performance and the value of research services provided by the broker in servicing the various accounts advised or managed by us. Generally, we do not tell brokers that we will try to allocate a particular amount of business to them. We do occasionally let brokers know how their performance has been evaluated. Research information that we obtain may be used in servicing all clients or accounts under our management, including our general account. Similarly, we will not necessarily use all research provided by a broker or dealer with which the Funds transact business in connection with those Funds. Transactions for the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds in the over-the-counter market are normally executed as principal transactions with a dealer that is a principal market maker in the security, unless a better price or better execution can be obtained from another source. Under these circumstances, the Funds pay no commission. Similarly, portfolio transactions in money market and debt securities will normally be executed through dealers or underwriters under circumstances where the Fund pays no commission. When making securities transactions for the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds that do not involve paying a brokerage commission (such as the purchase of short-term debt securities), we seek to obtain prompt execution in an effective manner at the best price. Subject to this general objective, we may give orders to dealers or underwriters who provide investment research. None of the Funds will pay a higher price, however, and the fact that we may benefit from such research is not considered in setting the expense charges. In addition to using brokers and dealers to execute portfolio securities transactions for clients or accounts we manage, we may enter into other types of business transactions with brokers or dealers. These other transactions will be unrelated to allocation of the Funds' portfolio transactions. For the years ended December 31, 2015, 2014 and 2013, total brokerage commissions for Separate Account No. 10 -- Pooled were $14,114, $8,857 and $12,767, respectively; for Separate Account No. 4 -- Pooled were $1,633, $1,084 and $1,437, respectively; for Separate Account No. 3 -- Pooled were $14,620, $22,385 and $40,370, respectively. For the fiscal year ended December 31, 2015, commissions of $10,046, $0 and $14,379, were paid to brokers providing research services to Separate Account No. 10 -- Pooled, Separate Account No. 4 -- Pooled and Separate Account No. 3 -- Pooled, respectively, on portfolio transactions of $85,255,328, $47,332,860 and $41,281,024, respectively. ADDITIONAL INFORMATION ABOUT RIA LOAN PROVISIONS Loans to plan trustees on behalf of participants are permitted in our RIA program. It is the plan administrator's responsibility to administer the loan program. The following are important features of the RIA loan provision: . We will only permit loans from the guaranteed interest option. If the amount requested to be borrowed plus the loan fee and loan reserve we discuss below is more than the amount available in the guaranteed interest option for the loan transaction, the employer can move the additional amounts necessary from one or more Funds to the guaranteed interest option. . The plan administrator determines the interest rate, the maximum term and all other terms and conditions of the loan. . Repayment of loan principal and interest can be made only to the guaranteed interest option. The employer must identify the portion of the repayment amount which is principal and which is interest. . Upon repayment of a loan amount, any repayment of loan principal and loan reserve (see below) taken from one or more Funds for loan purposes may be moved back to a Fund. . We charge a loan fee in an amount equal to 1% of the loan principal amount on the date a loan is made. The contingent withdrawal charge will be applied to any unpaid principal, as if the amount had been withdrawn on the day the principal payment was due. See "Charges and expenses" in the prospectus. . The minimum amount of a loan for a participant is $1,000, and the maximum amount is 90% of the balances in all the investment options for a participant. Subject to the maximum loan amount permitted by the employer's plan and the Code. . On the date a loan is made, we create a loan reserve account in the guaranteed interest option in an amount equal to 10% of the loan amount. The 10% loan reserve is intended to cover (1) the ongoing operations fee applicable to amounts borrowed, (2) the possibility of our having to deduct applicable contingent withdrawal charges (see "Charges and expenses" in the prospectus) and (3) the deduction of any other withholdings, if required. The loan amount will not earn any interest under the contracts while the loan is outstanding. The amount of the loan reserve will continue to earn interest at the guaranteed interest option rate applicable for the employer plan. . The ongoing operations fee will apply to the sum of the investment option balances (including the loan reserve) plus any unpaid loan principal. If the employer plan is terminated or any amount is withdrawn, or if any withdrawal from RIA results in the reduction of the 10% loan reserve amount in the guaranteed interest option, during the time a loan is outstanding, the contingent withdrawal charge will be applied to any principal loan balances outstanding as well as to any employer plan balances (including the loan reserve) in the investment options. See "Charges and expenses" in the prospectus. 5 ANNUITY BENEFITS Subject to the provisions of an employer plan, we have available under RIA the following forms of fixed annuities. . LIFE ANNUITY: An annuity which guarantees a lifetime income to the retired employee-participant ("annuitant") and ends with the last monthly payment before the annuitant's death. There is no death benefit associated with this annuity form and it provides the highest monthly amount of any of the guaranteed life annuity forms. If this form of annuity is selected, it is possible that only one payment will be made if the annuitant dies after that payment. . LIFE ANNUITY -- PERIOD CERTAIN: This annuity form guarantees a lifetime income to the annuitant and, if the annuitant dies during a previously selected minimum payment period, continuation of payments to a designated beneficiary for the balance of the period. The minimum period is usually 5, 10, 15 or 20 years. . LIFE ANNUITY -- REFUND CERTAIN: This annuity form guarantees a lifetime income to the annuitant and, if the annuitant dies before the initial single premium has been recovered, payments will continue to a designated beneficiary until the single premium has been recovered. If no beneficiary survives the annuitant, the refund will be paid in one lump sum to the estate. . PERIOD CERTAIN ANNUITY: Instead of guaranteed lifetime income, this annuity form provides for payments to the annuitant over a specified period, usually 5, 10, 15 or 20 years, with payments continuing to the designated beneficiary for the balance of the period if the annuitant dies before the period expires. . QUALIFIED JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees lifetime income to the annuitant, and, after the annuitant's death, the continuation of income to the surviving spouse. Generally, unless a married annuitant elects otherwise with the written consent of his spouse, this will be the form of annuity payment. If this form of annuity is selected, it is possible that only one payment will be made if both the annuitant and the spouse die after that payment. All of the forms outlined above (with the exception of qualified joint and survivor life annuity) are available as either Single or Joint life annuities. We offer other forms not outlined here. Your financial professional can provide details. AMOUNT OF FIXED-ANNUITY PAYMENTS Our forms of a fixed annuity provide monthly payments of specified amounts. Fixed-annuity payments, once begun, will not change. The size of payments will depend on the form of annuity that is chosen, our annuity rate tables in effect when the first payment is made, and, in the case of a life income annuity, on the annuitant's age. The tables in our contracts show monthly payments for each $1,000 of proceeds applied under an annuity. If our annuity rates in effect on the annuitant's retirement date would yield a larger payment, those current rates will apply instead of the tables. Our annuity rate tables are designed to determine the amounts required for the annuity benefits elected and for administrative and investment expenses and mortality and expense risks. Under our contracts we can change the annuity rate tables every five years. Such changes would not affect annuity payments being made. ONGOING OPERATIONS FEE We determine the ongoing operations fee based on the combined net balances of an employer plan in all the investment options (including any outstanding loan balances) at the close of business on the last business day of each month. For employer plans that adopted RIA on or before February 9, 1986, we use the rate schedule set forth below, and apply it to the employer plan balances at the close of business on the last business day of the following month. For employer plans that adopted RIA after February 9, 1986 we use the rate schedule set forth in the prospectus. See "Charges and expenses" in the prospectus. ------------------------------------ COMBINED BALANCE MONTHLY OF INVESTMENT OPTIONS RATE ------------------------------------ First $150,000 1/12 of 1.25% Next $350,000 1/12 of 1.00% Next $500,000 1/12 of 0.75% Next $1,500,000 1/12 of 0.50% Over $2,500,000 1/12 of 0.25% ------------------------------------ 6 MANAGEMENT FOR THE ALLIANCEBERNSTEIN BALANCED, ALLIANCEBERNSTEIN COMMON STOCK AND ALLIANCEBERNSTEIN MID CAP GROWTH FUNDS AND AXA EQUITABLE FUNDS In the Prospectus we give information about us, the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds and how we, together with AllianceBernstein, provide investment management for the investments and operations of these Funds. See "More information" in the prospectus. The amounts of the investment management and financial accounting fees we received from employer plans participating through registered contracts in the AllianceBernstein Balanced, AllianceBernstein Common Stock and AllianceBernstein Mid Cap Growth Funds in 2015 were $1,103, $366 and $1,205, respectively; 2014 were $1,727, $501 and $1,963, respectively; and 2013 were $1,602, $494 and $1,951, respectively. PORTFOLIO MANAGERS' INFORMATION (ALLIANCEBERNSTEIN BALANCED FUND, ALLIANCEBERNSTEIN COMMON STOCK FUND AND ALLIANCEBERNSTEIN MID CAP GROWTH FUND) The tables and discussion below provide information with respect to the portfolio managers who are primarily responsible for the day-to-day management of each Fund.
--------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN BALANCED FUND, SEPARATE ACCOUNT NO. 10 ("FUND") ALLIANCEBERNSTEIN L.P. ("ADVISER") INFORMATION AS OF DECEMBER 31, 2015 --------------------------------------------------------------------------------------------------------------------------- (A)(1) PORTFOLIO (A)(2) FOR EACH PERSON IDENTIFIED IN COLUMN (A)(3) FOR EACH OF THE CATEGORIES IN COLUMN MANAGER(S) OF THE (A)(1), THE NUMBER OF OTHER ACCOUNTS OF (A)(2), THE NUMBER OF ACCOUNTS AND THE ADVISER NAMED IN THE ADVISER MANAGED BY THE PERSON TOTAL ASSETS IN THE ACCOUNTS WITH THE PROSPECTUS WITHIN EACH CATEGORY BELOW AND THE TOTAL RESPECT TO WHICH THE ADVISORY FEE IS ASSETS IN THE ACCOUNTS MANAGED WITHIN BASED ON THE PERFORMANCE OF THE EACH CATEGORY BELOW ACCOUNT ----------------------------------------------------------------------------------------------------- REGISTERED OTHER POOLED REGISTERED OTHER POOLED INVESTMENT INVESTMENT OTHER INVESTMENT INVESTMENT OTHER COMPANIES VEHICLES ACCOUNTS COMPANIES VEHICLES ACCOUNTS ----------------------------------------------------------------------------------------------------- NUMBER TOTAL NUMBER TOTAL NUMBER TOTAL NUMBER TOTAL NUMBER TOTAL NUMBER TOTAL OF ASSETS OF ASSETS OF ASSETS OF ASSETS OF ASSETS OF ASSETS ACCOUNTS ($MM) ACCOUNTS ($MM) ACCOUNTS ($MM) ACCOUNTS ($MM) ACCOUNTS ($MM) ACCOUNTS ($MM) --------------------------------------------------------------------------------------------------------------------------- Greg Wilensky 40 9,497 32 1,201 124 9,098 -- -- -- -- 3 570 --------------------------------------------------------------------------------------------------------------------------- Joshua Lisser 34 27,823 46 6,392 65 21,309 -- -- -- -- 1 370 ---------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "AllianceBernstein's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
-------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 -------------------------------------------------------------------------------------- Joshua Lisser X -------------------------------------------------------------------------------------- Greg Wilensky X --------------------------------------------------------------------------------------
7 JOSHUA LISSER, SHAWN KEEGAN AND GREG WILENSKY HAVE NO OWNERSHIP SHARES TO REPORT. AllianceBernstein Balanced Fund, Separate Account No. 10 ("Fund") is managed by the following team members: JOSHUA LISSER -- CHIEF INVESTMENT OFFICER -- INDEX STRATEGIES Joshua Lisser is Chief Investment Officer of Index Strategies. He joined Alliance Capital in 1992 as a portfolio manager in the Index Strategies Group and developed the international and global risk-controlled equity services. Prior to that, Lisser was with Equitable Capital Management, specializing in derivative investment strategies. He holds a BA from the State University of New York, Binghamton, where he was elected a member of Phi Beta Kappa, and an MBA from New York University. Location: New York GREG WILENSKY, CFA -- DIRECTOR -- US MULTI-SECTOR FIXED INCOME; DIRECTOR -- TREASURY INFLATION-PROTECTED SECURITIES PORTFOLIOS; DIRECTOR -- STABLE VALUE INVESTMENTS Greg Wilensky is the lead member of the US Multi-Sector Fixed Income team. He has been responsible for the firm's US Treasury Inflation-Protected Securities (TIPS) portfolios since 1999 and the firm's stable value business since 1998. Wilensky is also the co-chair of the Securitized Asset and Liquid Markets Research Review meeting. Prior to joining AllianceBernstein in 1996, he was a treasury manager in the corporate finance group at AT&T. Wilensky earned a BS in business administration from Washington University and an MBA from the University of Chicago. He is a member of the New York Society of Security Analysts and a CFA charterholder. Location: New York SHAWN KEEGAN -- PORTFOLIO MANAGER Shawn Keegan is a member of the Credit portfolio management team focusing on US and global portfolios. He is also a member of the US Core Fixed Income and Canada Fixed Income portfolio management teams, for which he serves as credit specialist for multisector strategies. Keegan first joined AllianceBernstein in 1997 as a portfolio assistant. He later spent a year at Aladdin Capital as a trader before rejoining the firm in 2001 as part of the US Core Fixed Income team. Keegan holds a BS in finance from Siena College. Location: New York SETH MASTERS -- CHIEF INVESTMENT OFFICER -- BERNSTEIN GLOBAL WEALTH MANAGEMENT Seth Masters is Chief Investment Officer of Bernstein Global Wealth Management. He heads the team that provides customized wealth-planning advice and manages the firm's private client portfolios. Masters was previously CIO for Asset Allocation, overseeing the firm's Dynamic Asset Allocation, Target Date, Target Risk and Indexed services. In June 2008, he was appointed head of AllianceBernstein's newly formed Defined Contribution business unit, which has since become an industry leader in custom target-date and lifetime income portfolios. Masters became CIO of Blend Strategies in 2002 and launched a range of style-blended services. From 1994 to 2002, he was CIO of Emerging Markets Value Equities. He joined Bernstein in 1991 as a research analyst covering global financial firms. Masters has frequently been cited in print and appeared on television programs dealing with investment strategy. He has published numerous articles, including "The Case for the 20,000 Dow"; "Long-Horizon Investment Planning in Globally Integrated Capital Markets"; "Is There a Better Way to Rebalance?"; and "The Future of Defined Contribution Plans." Masters worked as a senior associate at Booz, Allen & Hamilton from 1986 to 1990 and taught economics in China from 1983 to 1985. He holds an AB from Princeton University and an MPhil in economics from Oxford University. He is fluent in French and Mandarin Chinese. Location: New York JUDITH A. DEVIVO -- SENIOR PORTFOLIO MANAGER -- INDEX STRATEGIES Judith A. DeVivo is a Senior Vice President and Senior Portfolio Manager. She manages equity portfolios benchmarked to a variety of indices, including the S&P 500, S&P MidCap, MSCI EAFE, S&P SmallCap and Russell 2000, in addition to several customized accounts. DeVivo joined Alliance in 1971 and has held a variety of positions throughout the firm. Just prior to joining the Passive Management Group in 1984, she was head of portfolio administration for the firm. Location: New York MICHAEL S. CANTER -- DIRECTOR -- US MULTI-SECTOR AND SECURITIZED ASSETS Michael S. Canter joined AB in 2007 as a Senior Vice President and is currently Director of U.S. Multi-Sector and Securitized Assets. He is also the Chief Investment Officer of AB's Securitized Assets Fund and Recovery Asset Fund (ABRA-S), and the former CIO of the Legacy Securities (PPIP) fund. In addition, Canter is Head of the Securitized Assets Research Group, which is responsible for AB's investments in agency mortgage-backed securities, non-agency residential mortgage-backed securities (RMBS), commercial mortgage-backed securities and other asset-backed securities. He has particularly extensive expertise in RMBS, and in 2013 was called upon to give expert testimony to the U.S. Senate Committee on Banking, Housing, and Urban Affairs on how U.S. housing policy should be structured going forward. In 2015, the U.S. Department of the Treasury asked Canter to join a working group of industry leaders focused on structural changes to non-agency RMBS that could restart that market. Prior to joining AB, he was the President of ACE Principal Finance, a division of ACE Limited, from 2000 to 2006. There, he managed portfolios of credit default swaps, asset-backed securities, mortgage-backed securities and collateralized debt obligations. Canter holds a BA in math and economics from Northwestern University and a PhD in finance from the Columbia University Graduate School of Business. Location: New York BEN SKLAR -- PORTFOLIO MANAGER -- INDEX STRATEGIES Ben Sklar joined AllianceBernstein in 2006 as an associate portfolio manager in the Blend Strategies Group, managing global equity portfolios for institutional clients. He joined the Index Strategies team in 2009 as a Portfolio Manager, and has focused on developing a suite of custom index, structured equity and systematic volatility-management strategies. He holds a BA in English literature from Trinity College, Hartford, and an MBA in finance from New York University's Stern School of Business. Location: New York 8 JOHN H. FOGARTY, CFA -- TEAM LEADER -- US MID CAP FUNDAMENTAL GROWTH AND PORTFOLIO MANAGER -- US GROWTH EQUITIES John H. Fogarty has been Team Leader of US Mid Cap Fundamental Growth since late 2008. He joined the US Growth team in early 2009 as a Portfolio Manager for the US Growth and US Growth and Income services. In early 2012, Fogarty also became a Portfolio Manager for US Large Cap Growth. He rejoined the firm in 2007 as fundamental growth research analyst covering consumer-discretionary stocks in the US, having previously spent nearly three years as a hedge fund manager at Dialectic Capital Management and Vardon Partners. Fogarty began his career at Alliance Capital in 1988, performing quantitative research while attending Columbia. He started full time with the firm in 1992, joined the US Large Cap Growth team as a generalist and quantitative analyst in 1995, and became a US Large Cap Growth portfolio manager in 1997. Fogarty received his BA in history from Columbia University. He is a CFA charterholder. Location: New York
---------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN COMMON STOCK FUND, SEPARATE ACCOUNT NO. 4 ("FUND") ALLIANCEBERNSTEIN L.P. ("ADVISER") INFORMATION AS OF DECEMBER 31, 2015 ---------------------------------------------------------------------------------------------------------------------------- (a)(1) Portfolio (a)(2) For each person identified in column (a)(1), (a)(3) For each of the categories in column (a)(2), manager(s) of the number of other accounts of the Adviser the number of accounts and the total the Adviser managed by the person within each category assets in the accounts with respect to named in the below and the total assets in the accounts which the advisory fee is based on the prospectus managed within each category below performance of the account ------------------------------------------------------------------------------------------------------- Registered Other Pooled Registered Other Pooled Investment Investment Other Investment Investment Other Companies Vehicles Accounts Companies Vehicles Accounts ------------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ---------------------------------------------------------------------------------------------------------------------------- Judith A. DeVivo 34 27,756 46 6,392 65 21,309 -- -- -- -- 1 370 ----------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "AllianceBernstein's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
-------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 -------------------------------------------------------------------------------------- Judith A. DeVivo X --------------------------------------------------------------------------------------
The management of and investment decisions for the Fund's portfolio are made by AllianceBernstein's US Passive Team, which is responsible for management of all of AllianceBernstein's Passive accounts. JUDITH A. DEVIVO -- SENIOR PORTFOLIO MANAGER -- INDEX STRATEGIES Judith A. DeVivo is a Senior Vice President and Senior Portfolio Manager. She manages equity portfolios benchmarked to a variety of indices, including the S&P 500, S&P MidCap, MSCI EAFE, S&P SmallCap and Russell 2000, in addition to several customized accounts. DeVivo joined Alliance in 1971 and has held a variety of positions throughout the firm. Just prior to joining the Passive Management Group in 1984, she was head of portfolio administration for the firm. Location: New York
---------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN MID CAP GROWTH FUND, SEPARATE ACCOUNT NO. 3 ("FUND") ALLIANCEBERNSTEIN L.P. ("ADVISER") INFORMATION AS OF DECEMBER 31, 2015 ---------------------------------------------------------------------------------------------------------------------------- (a)(1) Portfolio manager(s) (a)(2) For each person identified in column (a)(1), of the the number of other accounts of the (a)(3) For each of the categories in column Adviser Adviser managed by the person within (a)(2), the number of accounts and the named each category below and the total assets total assets in the accounts with respect in the in the accounts managed within each to which the advisory fee is based on the prospectus category below performance of the account -------------------------------------------------------------------------------------------------------------- Registered Other Pooled Registered Other Pooled Investment Investment Other Investment Investment Other Companies Vehicles Accounts Companies Vehicles Accounts -------------------------------------------------------------------------------------------------------------- Number Total Number Total Number Total Number Total Number Total Number Total of Assets of Assets of Assets of Assets of Assets of Assets Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) Accounts ($MM) ---------------------------------------------------------------------------------------------------------------------------- John H. Fogarty 24 7,145 16 3,411 3,429 2,124 -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------
Note: $MM means millions 9 For a description of any material conflicts, please see "Investment professional conflict of interest" later in the SAI. For compensation information, please see "AllianceBernstein's compensation program" later in the SAI. Ownership of Securities of AXA's insurance products for which the Fund serves as an investment option (Retirement Investment Account and Members Retirement Program):
-------------------------------------------------------------------------------------- $10,001- $50,001- $100,001- $500,001- OVER PORTFOLIO MANAGER NONE $1-$10,000 $50,000 $100,000 $500,000 $1,000,000 $1,000,000 -------------------------------------------------------------------------------------- John H. Fogarty X --------------------------------------------------------------------------------------
The management of and investment decisions for the Fund's portfolio are made by Mr. John H. Fogarty. Mr. Fogarty relies heavily on the fundamental research efforts of the firm's extensive internal research staff. JOHN H. FOGARTY, CFA -- TEAM LEADER -- US MID CAP FUNDAMENTAL GROWTH AND PORTFOLIO MANAGER -- US GROWTH EQUITIES John H. Fogarty has been Team Leader of US Mid Cap Fundamental Growth since late 2008. He joined the US Growth team in early 2009 as a Portfolio Manager for the US Growth and US Growth and Income services. In early 2012, Fogarty also became a Portfolio Manager for US Large Cap Growth. He rejoined the firm in 2007 as fundamental growth research analyst covering consumer-discretionary stocks in the US, having previously spent nearly three years as a hedge fund manager at Dialectic Capital Management and Vardon Partners. Fogarty began his career at Alliance Capital in 1988, performing quantitative research while attending Columbia. He started full time with the firm in 1992, joined the US Large Cap Growth team as a generalist and quantitative analyst in 1995, and became a US Large Cap Growth portfolio manager in 1997. Fogarty received his BA in history from Columbia University. He is a CFA charterholder. Location: New York 10 INVESTMENT PROFESSIONAL CONFLICT OF INTEREST DISCLOSURE As an investment adviser and fiduciary, AllianceBernstein owes its clients and shareholders an undivided duty of loyalty. We recognize that conflicts of interest are inherent in our business and accordingly have developed policies and procedures (including oversight monitoring) reasonably designed to detect, manage and mitigate the effects of actual or potential conflicts of interest in the area of employee personal trading, managing multiple accounts for multiple clients, including AllianceBernstein Mutual Funds, and allocating investment opportunities. Investment professionals, including portfolio managers and research analysts, are subject to the above-mentioned policies and oversight monitoring to ensure that all clients are treated equitably. We place the interests of our clients first and expect all of our employees to meet their fiduciary duties. EMPLOYEE PERSONAL TRADING AllianceBernstein has adopted a Code of Business Conduct and Ethics that is designed to detect and prevent conflicts of interest when investment professionals and other personnel of AllianceBernstein own, buy or sell securities which may be owned by, or bought or sold for, clients. Personal securities transactions by an employee may raise a potential conflict of interest when an employee owns or trades in a security that is owned or considered for purchase or sale by a client, or recommended for purchase or sale by an employee to a client. Subject to the reporting requirements and other limitations of its Code of Business Conduct and Ethics, the Adviser permits its employees to engage in personal securities transactions, and also allows them to acquire investments in the AllianceBernstein Mutual Funds through direct purchase and/or notionally in connection with deferred incentive compensation awards. AllianceBernstein's Code of Ethics and Business Conduct requires disclosure of all personal accounts and maintenance of brokerage accounts with designated broker-dealers approved by the Adviser. The Code also requires preclearance of all securities transactions (except transactions in open-end mutual funds) and imposes a 90 day holding period for securities purchased by employees to discourage short-term trading. MANAGING MULTIPLE ACCOUNTS FOR MULTIPLE CLIENTS AllianceBernstein has compliance policies and oversight monitoring in place to address conflicts of interest relating to the management of multiple accounts for multiple clients. Conflicts of interest may arise when an investment professional has responsibilities for the investments of more than one account because the investment professional may be unable to devote equal time and attention to each account. The investment professional or investment professional teams for each client may have responsibilities for managing all or a portion of the investments of multiple accounts with a common investment strategy, including other registered investment companies, unregistered investment vehicles, such as hedge funds, pension plans, separate accounts, collective trusts and charitable foundations. Among other things, AllianceBernstein's policies and procedures provide for the prompt dissemination to investment professionals of initial or changed investment recommendations by analysts so that investment professionals are better able to develop investment strategies for all accounts they manage. In addition, investment decisions by investment professionals are reviewed for the purpose of maintaining uniformity among similar accounts and ensuring that accounts are treated equitably. No investment professional that manages client accounts carrying performance fees is compensated directly or specifically for the performance of those accounts. Investment professional compensation reflects a broad contribution in multiple dimensions to long-term investment success for our clients and is not tied specifically to the performance of any particular client's account, nor is it directly tied to the level or change in level of assets under management. ALLOCATING INVESTMENT OPPORTUNITIES AllianceBernstein has policies and procedures intended to address conflicts of interest relating to the allocation of investment opportunities. These policies and procedures are designed to ensure that information relevant to investment decisions is disseminated promptly within its portfolio management teams and investment opportunities are allocated equitably among different clients. The investment professionals at AllianceBernstein routinely are required to select and allocate investment opportunities among accounts. Portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar accounts, which minimizes the potential for conflicts of interest relating to the allocation of investment opportunities. Nevertheless, investment opportunities may be allocated differently among accounts due to the particular characteristics of an account, such as size of the account, cash position, tax status, risk tolerance and investment restrictions or for other reasons. AllianceBernstein's procedures are also designed to prevent potential conflicts of interest that may arise when AllianceBernstein has a particular financial incentive, such as a performance-based management fee, relating to an account. An investment professional may perceive that he or she has an incentive to devote more time to developing and analyzing investment strategies and opportunities or allocating securities preferentially to accounts for which the Adviser could share in investment gains. To address these conflicts of interest, AllianceBernstein's policies and procedures require, among other things, the prompt dissemination to investment professionals of any initial or changed investment recommendations by analysts; the aggregation of orders to facilitate best execution for all accounts; price averaging for all aggregated orders; objective allocation for limited investment opportunities (e.g., on a rotational basis) to ensure fair and equitable allocation among accounts; and limitations on short sales of securities. These procedures also require documentation and review of justifications for any decisions to make investments only for select accounts or in a manner disproportionate to the size of the account. PORTFOLIO MANAGER COMPENSATION AllianceBernstein's compensation program for investment professionals is designed to be competitive and effective in order to attract and retain the highest caliber employees. The program is designed to reflect their ability to generate long-term investment success for our clients. Investment professionals do not receive any direct compensation based upon the investment returns of any individual client account, nor is compensation tied directly to the level or change in level of assets under management. Investment professionals' annual compensation is comprised of the following: (i)Fixed base salary: The base salary is a relatively low, fixed salary within a similar range for all investment professionals. The base 11 salary does not change significantly from year-to-year and hence, is not particularly sensitive to performance. (ii)Discretionary incentive compensation in the form of an annual cash bonus: AllianceBernstein's overall profitability determines the total amount of incentive compensation available to investment professionals. This portion of compensation is determined subjectively based on qualitative and quantitative factors. In evaluating this component of an investment professional's compensation, AllianceBernstein considers the contribution to his/ her team or discipline as it relates to that team's overall contribution to the long-term investment success, business results and strategy of AllianceBernstein. Quantitative factors considered include, among other things, relative investment performance (e.g., by comparison to competitor or peer group funds or similar styles of investments, and appropriate, broad-based or specific market indices), and consistency of performance. There are no specific formulas used to determine this part of an investment professional's compensation and the compensation is not tied to any predetermined or specified level of performance. AllianceBernstein also considers qualitative factors such as the complexity and risk of investment strategies involved in the style or type of assets managed by the investment professional; success of marketing/business development efforts and client servicing; seniority/length of service with the firm; management and supervisory responsibilities; and fulfillment of AllianceBernstein's leadership criteria. (iii)Discretionary incentive compensation in the form of awards under AllianceBernstein's Incentive Compensation Awards Plan (''deferred awards''): AllianceBernstein's overall profitability determines the total amount of deferred awards available to investment professionals. The deferred awards are allocated among investment professionals based on criteria similar to those used to determine the annual cash bonus. Deferred awards, which are in the form of AllianceBernstein's publicly traded units or deferred cash (the option to take an award in deferred cash is limited to a certain portion of the total award), vest over a four-year period. The awards are generally forfeited if the employee resigns to work for a competitor of AllianceBernstein. CONTRIBUTIONS UNDER ALLIANCEBERNSTEIN'S PROFIT SHARING/401(K) PLAN The contributions are based on AllianceBernstein's overall profitability. The amount and allocation of the contributions are determined at the sole discretion of AllianceBernstein. DISTRIBUTION OF THE CONTRACTS Pursuant to a Distribution and Servicing Agreement between AXA Advisors, AXA Equitable, and certain of AXA Equitable's separate accounts, AXA Equitable paid AXA Advisors a fee of $0 in 2015 and $325,380 for each of the years, 2014 and 2013, respectively. AXA Equitable paid AXA Advisors as the distributor of certain contracts, including these contracts, and as the principal underwriter of several AXA Equitable separate accounts $560,399,960 in 2015, $571,445,806 in 2014 and $577,490,356 in 2013. Of these amounts, AXA Advisors retained $285,764,982, $305,637,317 and $319,941,479, respectively. CUSTODIAN AND INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM JPMorgan Chase Bank, N.A. is the custodian for the shares of the Trusts owned by Separate Accounts No. 3, 4 and 10. There is no custodian for the shares of the Trusts owned by Separate Account No. 66. The financial statements of each Separate Account at December 31, 2015 and for each of the two years in the period ended December 31, 2015, and the consolidated financial statements of AXA Equitable at December 31, 2015 and 2014 and for each of the three years in the period ended December 31, 2015 are included in this SAI 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. 12 AXA EQUITABLE We are managed by a Board of Directors which is elected by our shareholder(s). Our directors and certain of our executive officers and their principal occupations are as follows. Unless otherwise indicated, the following persons have been involved in the management of AXA Equitable and/or its affiliates in various executive positions during the last five years. DIRECTORS AND PRINCIPAL OFFICERS
------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Henri de Castries Director, MONY Life (July 2004 to AXA September 2013) and MONY America (since 25, Avenue Matignon July 2004); Director of AXA Equitable 75008 Paris, France (since September 1993); Chairman of the Board of AXA Financial (since April 1998); Vice Chairman (February 1996 to April 1998). Chairman and Chief Executive Officer of AXA since April 2010; prior thereto, Chairman of the Management Board (May 2000 to April 2010) and Chief Executive Officer of AXA (January 2000 to May 2002); Vice Chairman of AXA's Management Board (January 2000 to May 2000). Director or officer of various subsidiaries and affiliates of the AXA Group. Director of AllianceBernstein Corporation, the general partner of AllianceBernstein Holding and AllianceBernstein (October 1993 to July 2015). Director, Nestle S.A. since April 2012. Director of Donaldson, Lufkin and Jenrette ("DLJ") (July 1993 to November 2000). Director of HSBC Holdings PLC (since March 2016). ------------------------------------------------------------------------------- Denis Duverne Director, MONY Life (July 2004 to AXA September 2013) and MONY America (since 25, Avenue Matignon July 2004); Director of AXA Equitable 75008 Paris, France (since February 1998). Member of AXA's Board of Directors and Deputy Chief Executive Officer (since April 2010); prior thereto, Member of the AXA Management Board (February 2003 to April 2010) and Chief Financial Officer (May 2003 through December 2009), prior thereto, Executive Vice President, Finance, Control and Strategy, AXA (January 2000 to May 2003); prior thereto Senior Executive Vice President, International (US-UK-Benelux) AXA (January 1997 to January 2000); Member of the AXA Executive Committee (since January 2000); Director, AXA Financial (since November 2003), AllianceBernstein (since February 1996) and various AXA affiliated companies. Director of DLJ (February 1997 to November 2000). ------------------------------------------------------------------------------- Ramon de Oliveira Director of AXA Financial, AXA Investment Audit Practice, LLC Equitable and MONY America since May 70 South Fifth Street 2011. Director of MONY Life (May 2011 Park Ridge, NJ 07656 to September 2013). Since April 2010, Mr. de Oliveira has been a member of AXA's Board of Directors, where he serves on the Finance Committee (Chair) and Audit Committee, and from April 2009 to April 2010, he was a member AXA's Supervisory Board. He is currently the Managing Director of the consulting firm Investment Audit Practice, LLC, based in New York. From 2002 and 2006, Mr. de Oliveira was Adjunct Professor of Finance at Columbia University. Prior thereto, starting in 1977, he spent 24 years at JP Morgan & Co. where he was Chairman and Chief Executive Officer of JP Morgan Investment Management and was also a member of the firm's Management Committee since its inception in 1995. Upon the merger with Chase Manhattan Bank in 2001, Mr. de Oliveira was the only executive from JP Morgan & Co. asked to join the Executive Committee of the new firm with operating responsibilities. Mr. de Oliveira is currently the Chairman of the Investment Committee of Fonds de Dotation du Louvre (since 2009) and JACCAR Holdings SA (2011). Previously, he served as a Director of JP Morgan Suisse, American Century Company, Inc., SunGard Data Systems, The Hartford Insurance Company, Tattinger-Kobrand USA, Quilvest SA and L'Atelier. Mr. de Oliveira also formerly served as a Trustee and Chairman of the Investment Committee of The Kauffman Foundation, a Member of the Investment Committee of The Red Cross and the Chairman of the Board of Friends of Education. ------------------------------------------------------------------------------- Daniel G. Kaye Mr. Kaye has been a Director of AXA 767 Quail Run Equitable since September 2015. From Inverness, IL 60067 January 2013 to May 2014, Mr. Kaye served as Interim Chief Financial Officer and Treasurer of HealthEast Care System ("HealthEast"). Prior to joining HealthEast, Mr. Kaye spent 35 years with Ernst & Young LLP ("Ernst & Young") from which he retired in 2012. Throughout his time at Ernst & Young, where he was an audit partner for 25 years, Mr. Kaye enjoyed a track record of increasing leadership and responsibilities, including serving as the New England Managing Partner and the Midwest Managing Partner of Assurance. Mr. Kaye is a member of the Board of Directors of Ferrellgas Partners L.P. ("Ferrellgas"), where he serves on the Audit Committee and Corporate Governance and Nominating Committee (Chair). Mr. Kaye is a Certified Public Accountant and National Association of Corporate Directors (NACD) Board Leadership Fellow. Mr. Kaye is also a director of AXA Financial and MLOA since September 2015. -------------------------------------------------------------------------------
13 DIRECTORS AND PRINCIPAL OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Kristi A. Matus Ms. Matus has been a Director of AXA athenahealth Equitable since September 2015. 311 Arsenal Street Ms. Matus currently serves as Executive Watertown, MA 02472 Vice President and Chief Financial & Administrative Officer of athenahealth, Inc. ("athenahealth") since July 2014. Prior to joining athenahealth, Ms. Matus served as Executive Vice President and Head of Government Services of Aetna, Inc. ("Aetna") from February 2012 to July 2013. Prior to Aetna, she held several senior leadership roles at United Services Automobile Association ("USAA"), including Executive Vice President and Chief Financial Officer from 2008 to 2012. She began her career at the Aid Association for Lutherans, where she held various financial and operational roles for over a decade. Ms. Matus is also a director of AXA Financial and MLOA since September 2015. ------------------------------------------------------------------------------- Richard C. Vaughan Director of AXA Financial, AXA 764 Lynnmore Lane Equitable and MONY America since May Naples, FL 34108 2010. Director of MONY Life (May 2010 to September 2013). Executive Vice President and Chief Financial Officer of Lincoln Financial Group (1995 to May 2005); prior thereto, Chief Financial Officer (June 1992 to 1995); Senior Vice President and Chief Financial Officer of Employee Benefits Division (July 1990 to 1995). Member of the Board of Directors of MBIA, Inc, serving on the Audit Committee, The Executive Committee and the Finance and Risk Committee (Chair). ------------------------------------------------------------------------------- Barbara Fallon-Walsh Director of AXA Financial, AXA 1670 Stephens Drive Equitable and MONY America since May Wayne, PA 19087 2012. Director of MONY Life (May 2012 to September 2013). Ms. Fallon-Walsh was with The Vanguard Group, Inc. ("Vanguard") from 1995 until her retirement in 2012, where she held several executive positions, including Head of Institutional Retirement Plan Services from 2006 through 2011. Ms. Fallon-Walsh started her career at Security Pacific Corporation in 1979 and held a number of senior and executive positions with the company, which merged with Bank of America in 1992. From 1992 until joining Vanguard in 1995, Ms. Fallon-Walsh served as Executive Vice President, Bay Area Region and Los Angeles Gold Coast Region for Bank of America. Ms. Fallon-Walsh is currently a member of the Board of Directors of AXA Investment Managers S.A. ("AXA IM"), where she serves on the Audit and Risk Committee and the Remuneration Committee, and of AXA Rosenberg Group LLC. Ms. Fallon-Walsh has been a member of the Main Line Chamber of Commerce Board of Directors and Executive Committee, the Business and Advisory Council for Widener University and served on the Board of Trustees and Executive Committee of the Employee Benefit Research Institute in Washington, DC. ------------------------------------------------------------------------------- Bertram L. Scott Director of AXA Financial, AXA Novant Health, Inc. Equitable and MONY America since May 108 Providence Road 2012. Director of MONY Life (May 2012 Charlotte, NC 28207 to September 2013). Mr. Scott is Senior Vice President of population health management of Novant Health, Inc. since February 2015. From November 2012 to December 2014, he served as President and Chief Executive Officer of Affinity Health Plan. Prior to joining Affinity, Mr. Scott served as President, U.S. Commercial of CIGNA Corporation from June 2010 to December 2011, with executive responsibilities for U.S. products, marketing, national accounts, underwriting and for regional, individual, select and senior segments. Prior to joining CIGNA, Mr. Scott served as Executive Vice President and Chief Institutional Development & Sales Officer at TIAA-CREF, a leading provider of retirement services in the academic, research, medical and cultural fields. Mr. Scott is a member of the Board of Directors of Becton, Dickinson and Company, where he serves on the Audit Committee (Chair) as Chairman and Compensation and Benefits Committee. He is a Director of Lowe's Companies, Inc., where he serves on the Audit Committee and Governance Committee (since November 2015). ------------------------------------------------------------------------------- Lorie A. Slutsky Director of AXA Financial, Inc., AXA The New York Community Trust Equitable and MONY America (since 909 Third Avenue September 2006). Director of MONY Life New York, NY 10022 (September 2006 to September 2013). President of The New York Community Trust (since 1990). Prior thereto, Executive Vice President of The New York Community Trust (1987 to 1990). Director and Chairperson of Corporate Governance Committee and Member of Executive and Compensation Committees of AllianceBernstein Corporation (since July 2002); Former Director and Chairman of the Board of BoardSource, Former Trustee of The New School. Former Chairman of the Board of Governors of the Milano School of Management & Urban Policy (The New School). ------------------------------------------------------------------------------- Peter S. Kraus Director of AXA Financial, Inc., AXA AllianceBernstein Corporation Equitable and MONY America (since 1345 Avenue of the Americas February 2009). Director of MONY Life New York, NY 10105 (February 2009 to September 2013). Director, Chairman of the Board and Chief Executive Officer of AllianceBernstein Corporation (since December 2008). Prior thereto, Executive Vice President of Merrill Lynch & Co. (September 2008 to December 2008). Prior thereto, co-head, Investment Management Division of Goldman Sachs Group, Inc. (March 1986 to March 2008); also held the following positions: co-head of the Financial Institutions Group Tokyo (1990-1996). Currently, Director of Keewaydin Camp; Chairman of the Investment Committee of Trinity College; Chairman of the Board of California Institute of the Arts; Co-Chair of Friends of the Carnegie International and Lincoln Center. ------------------------------------------------------------------------------- 14
OFFICERS -- DIRECTORS ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Mark Pearson Director (since January 2011), President and Chief Executive Officer (since February 2011), AXA Financial. Chairman of the Board and Chief Executive Officer (since February 2011) and Director (since January 2011), AXA Equitable, AXA Equitable Financial Services, LLC and MONY America. Director, Chairman of the Board and Chief Executive Officer of MONY Life (February 2011 to September 2013). Member of AXA's Management and Executive Committees (since 2008). President and Chief Executive Officer of AXA Japan (2008 to January 2011). Director, Representative Executive Officer, President and Chief Executive Officer (June 2010 to February 2011), AXA Japan Holding Co., Ltd and AXA Life Insurance Co., Ltd. (concurrently); prior thereto, Representative Director, President and Chief Executive Officer (June 2008 to June 2010). Regional Chief Executive Officer, Life, AXA Asia Life and AXA Asia Pacific Holdings Limited (concurrently) (October 2001 to June 2008). Director and President, AXA America Holdings, Inc. (since January 2011). Director, AllianceBernstein Corporation (since February 2011). -------------------------------------------------------------------------------
OTHER OFFICERS ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Salvatore Piazzolla Senior Executive Vice President (since March 2011), AXA Financial, Inc. and MONY America. Senior Executive Vice President of MONY Life (March 2011 to September 2013). Senior Executive Director and Chief Human Resources Officer, AXA Equitable Financial Services, LLC and AXA Equitable (since December 2012). Prior thereto, Senior Executive Vice President AXA Equitable Financial Services, LLC and AXA Equitable (March 2011 to December 2012). Director of AXA Assicurazioni S.p.A. (since April 2013). Senior Executive Vice President, Head of Human Resources, UniCredit Group (2005 to February 2011). Vice President, Human Resources, General Electric (2001 to 2004). Director, MONY Assets Corp. (March 2011 to December 2011). ------------------------------------------------------------------------------- Andrea M. Nitzan Executive Director, Chief Accounting Officer (since December 2012) and Controller (since November 2014), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Senior Vice President (May 2008 to December 2012); Assistant Vice President and Chief of Staff (1996 to May 2008). Executive Vice President, Chief Accounting Officer and Controller (since November 2014), AXA Financial and MONY America (since September 2011). Executive Vice President andChief Accounting Officer, MONY Life (September 2011 to September 2013). ------------------------------------------------------------------------------- Dave S. Hattem Senior Executive Director and General Counsel (December 2012 to present); prior thereto, Senior Vice President (September 1999 to December 2012) and General Counsel (February 2010 to present) of AXA Equitable and AXA Equitable Financial Services, LLC; prior thereto, Senior Vice President (September 1999 to present) and Deputy General Counsel (May 2004 to February 2010), Associate General Counsel (September 1999 to May 2004). Senior Executive Vice President (since May 2013) and General Counsel (since May 2010), AXA Financial, Inc.; prior thereto, Executive Vice President May 2012 to May 2013) and General Counsel (since May 2010); Senior Vice President (September 2008 to May 2012) and General Counsel (May 2010 to present); Senior Vice President and Deputy General Counsel (September 2008 to May 2010). Senior Executive Director (since December 2012) and General Counsel (since February 2010), MONY America; prior thereto, Executive Vice President (May 2012 to December 2012) and General Counsel (since February 2010). Executive Senior Vice President and Deputy General Counsel of MONY Life (December 2012 to September 2013; held previous positions). Executive Vice President (since July 2012) and General Counsel (since December 2010), AXA Equitable Life and Annuity Company. Executive Vice President (since June 2012) and General Counsel (since December 2010), MONY Financial Services, Inc. ------------------------------------------------------------------------------- Karen Field Hazin Lead Director (since December 2012), Secretary (since June 2005) and Associate General Counsel (since June 2005), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Vice President, Secretary and Associate General Counsel (June 2005 to December 2012), Counsel (April 2005 to June 2005), Assistant Vice President and Counsel (December 2001 to June 2003), Counsel (December 1996 to December 2001). Vice President, Secretary and Associate General Counsel, MONY America (since June 2005). Vice President, Secretary and Associate General Counsel (since June 2005), AXA Financial, Inc. Vice President and Secretary (since September 2005), AXA America Holdings, Inc. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Equitable Life and Annuity Company. Vice President, Secretary and Associate General Counsel (since June 2005), AXA Distribution Holding Corporation. Vice President, Secretary and Associate General Counsel, MONY Life (June 2005 to September 2013). -------------------------------------------------------------------------------
15
OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Anthony F. Recine Senior Vice President, Chief Compliance Officer (February 2005 to present) and Deputy General Counsel (February 2010 to present) of MONY America. Managing Director, Chief Compliance Officer and Deputy General Counsel (since December 2012), AXA Equitable and AXA Equitable Financial Services, LLC; prior thereto, Senior Vice President (February 2005 to December 2012), Chief Compliance Officer (February 2005 to present), and Deputy General Counsel (February 2010 to present); prior thereto, Senior Vice President, Chief Compliance Officer and Associate General Counsel (February 2005 to February 2010). Senior Vice President, Chief Compliance Officer and Deputy General Counsel, AXA Financial (since May 2010). Vice President, Deputy General Counsel and Chief Litigation Counsel (2000 to February 2005) of The MONY Group; prior thereto, Vice President and Chief Litigation Counsel (1990 to 2000). Senior Vice President, Chief Compliance Officer (February 2005 to September 2013) and Deputy General Counsel (February 2010 to September 2013) of MONY Life. ------------------------------------------------------------------------------- Nicholas B. Lane Senior Executive Director (since December 2012) and Head of U.S. Life and Retirement (since November 2013), AXA Equitable Financial Services, LLC and AXA Equitable; prior thereto, Senior Executive Director and President, Retirement Savings (December 2012 to November 2013); prior thereto, Senior Executive Vice President (February 2011 to December 2012) and President, Retirement Savings (February 2011 to November 2013). Senior Executive Vice President (since February 2011) and Head of U.S. Life and Retirement (since November 2013), AXA Financial and MONY America; prior thereto, Senior Executive Vice President and President, Retirement Savings (February 2011 to November 2013). Senior Executive Vice President and President, Retirement Savings, MONY Life (February 2011 to September 2013). Director and Member of the Audit Committee (since February 2011), U.S. Financial Life Insurance Company and AXA Equitable Life and Annuity Company. Director and Chief Retirement Savings Officer (since February 2011), AXA Advisors, LLC. Director and Member of the Audit Committee, AXA Corporate Solutions Life Reinsurance Company (November 2008 to March 2011). Director, Chairman of the Board, President, Chief Executive Officer and Chief Retirement Savings Officer (since February 2011), AXA Distributors, LLC. Director, AXA Distribution Holding Corporation (since October 2013). Head of Global Strategy & Business Support and Development (June 2008 to January 2011), AXA SA. Senior Vice President of Retail Distribution Business Platforms (February 2006 to June 2008), AXA Equitable; prior thereto, Vice President (May 2005 to February 2006). ------------------------------------------------------------------------------- Anders B. Malmstrom Senior Executive Vice President and Chief Financial Officer (since June 2012), AXA Financial, Inc. and MONY America. Senior Executive Director and Chief Financial Officer, AXA Equitable (since December 2012); prior thereto, Senior Executive Vice President and Chief Financial Officer (June 2012 to December 2012). Director (since July 2012), Senior Executive Director and Chief Financial Officer (since June 2012), AXA Equitable Financial Services, LLC. Director (since July 2012), 1740 Advisers, Inc. Director, Chairman of the Board, President and Chief Executive Officer (since July 2012), ACMC, LLC. Director (July 2012), AXA Advisors, LLC. Director and Senior Executive Vice President (since July 2012), AXA America Holdings, Inc. Director and Chairman of the Board; Member of the Audit Committee (since July 2012), AXA Corporate Solutions Life Reinsurance Company. Director, Chairman of the Board and Chief Executive Officer (since July 2012), AXA Distribution Holding Corporation. Director (since July 2012) and Chairman of the Board (since August 2012); Member of the Audit Committee (Chairman) (since July), AXA Equitable Life and Annuity Company. Director and Chairman of the Board (since July 2012), AXA RE Arizona Company. Director, Chairman of the Board and Chief Executive Officer (since July 2012), Financial Marketing Agency, Inc. Director (since July 2012), Chairman of the Board, President and Chief Executive Officer (since August 2012), MONY Financial Services, Inc. Director (since July 2012), MONY Financial Resources of the Americas Limited. Director (since July 2012), MONY International Holdings, LLC. Director (since December 2013), 1740 Advisors, Inc. Director (since September 2012), MONY Life Insurance Company of the Americas, Ltd. Director and Chairman of the Board; Member of the Audit Committee (Chairman) (since July 2012), U.S. Financial Life Insurance Company. Senior Executive Vice President and Chief Financial Officer, MONY Life (June 2012 to September 2013). Director and Chairman of the Board, CS Life Re Company (since November 2014). Director, AXA Strategic Ventures US, LLC (since December 2014). -------------------------------------------------------------------------------
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OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Joshua E. Braverman Senior Executive Director and Treasurer (since December 2012), AXA Equitable and AXA Equitable Financial Services; prior thereto, Executive Vice President and Treasurer (September 2012 to December 2012), Senior Vice President, Head of Derivatives (September 2009 to September 2012). Senior Executive Vice President (since May 2013) and Treasurer (since September 2012), AXA Financial, Inc. and MONY America; prior thereto, Executive Vice President and Treasurer (September 2012 to May 2013). Executive Vice President and Treasurer, MONY Life (September 2012 to September 2013). Director, Executive Vice President, Chief Financial Officer and Treasurer and Member of the Audit Committee (since September 2012), AXA Equitable Life and Annuity Company. Director, Executive Vice President, Chief Financial Officer and Treasurer and Member of the Audit Committee (since September 2012), U.S. Financial Life Insurance Company. Director, President, Chief Executive Officer and Chief Investment Officer and Chairman of the Audit Committee (since September 2012), AXA Corporate Solutions Life Reinsurance Company. Director and Chairman (since September 2012), Equitable Casualty Insurance Company. Director, President and Chief Executive Officer (since September 2012), AXA RE Arizona Company. Executive Vice President and Treasurer (since September 2012), AXA America Holdings, Inc. Director, President and Chief Financial Officer (since September 2012), AXA Distribution Holding Corporation. Director and President, MONY Life Insurance Company of the Americas Limited (since September 2012). Director, President and Treasurer (since September 2012), MONY International Holdings, LLC. Director, President and Treasurer (since September 2012), MBT, Ltd. Director, Chairman, President and Treasurer (since September 2012), MONY Financial Resources of the Americas Limited. Director, Executive Vice President, Chief Financial Officer and Treasurer (since September 2012), MONY Financial Services, Inc. Executive Vice President and Treasurer (since September 2012), 1740 Advisors, Inc. Director, President, Chief Executive Officer and Chief Financial Officer, CS Life Re Company (since November 2014). Senior Executive Vice President and Treasurer, AXA Strategic Ventures US, LLC (since December 2014). ------------------------------------------------------------------------------- Priscilla Sims Brown Senior Executive Director and Chief Marketing Officer, AXA Equitable and AXA Equitable Financial Services since September 2014. Senior Executive Vice President and Chief Marketing Officer, AXA Financial, Inc. and MONY Life since September 2014. Senior Vice President and Chief Marketing and Development Officer, AmeriHealth Caritas (April 2013 to August 2014). Head of Marketing, Sun Life Financial (January 2009 to March 2013). Served in numerous roles at Lincoln Financial Group, the most recent being Chief Marketing Officer (February 1991 to December 2008). ------------------------------------------------------------------------------- Michael B. Healy Executive Director (since December 2012) and Chief Information Officer (since May 2011), AXA Equitable and AXA Equitable Financial Services; prior thereto, (Executive Vice President (May 2011 to December 2012) and Chief Information Officer (since May 2011), Senior Vice President and Chief Information Officer (September 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Executive Vice President and Chief Information Officer (since May 2011), AXA Financial and MONY America; prior thereto, Senior Vice President and Chief Information Officer (November 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Executive Vice President and Chief Information Officer (May 2011 to September 2013), MONY Life; prior thereto, Senior Vice President and Chief Information Officer (November 2010 to May 2011); Senior Vice President (September 2009 to November 2010). Senior Vice President, Program Office at Marsh & McLennan Companies Inc. (April 2003 to August 2009). ------------------------------------------------------------------------------- Keith E. Floman Managing Director and Chief Actuary, AXA Equitable and AXA Equitable Financial Services (since December 2012); prior thereto, Senior Vice President and Actuary (November 2008 to December 2012), Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, MONY America (since November 2008); prior thereto, Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, MONY Life (November 2008 to September 2013); prior thereto, Vice President and Senior Actuary (August 2006 to November 2008). Senior Vice President and Actuary, AXA Equitable Life and Annuity Company (since December 2008). Senior Vice President and Actuary (since January 2009) and Appointed Actuary (since May 2008), U.S. Financial Life Insurance Company. Senior Vice President, AXA Corporate Solutions Life Reinsurance Company (since July 2007). Director, Executive Vice President and Chief Financial Officer, AXA RE Arizona Company (since May 2013). Director, Financial Marketing Agency, Inc. (since May 2013). ------------------------------------------------------------------------------- Sharon A. Ritchey Senior Executive Director and Chief Operating Officer, AXA Equitable and AXA Equitable Financial Services (since November 2013). Senior Executive Vice President and Chief Operating Officer, AXA Financial and MONY America (since November 2013). Director of AXA Advisors, LLC and AXA Business Services Private Limited. Executive Vice President, Retirement Plans Group, The Hartford Financial (January 1999 to January 2013). -------------------------------------------------------------------------------
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OTHER OFFICERS (CONTINUED) ------------------------------------------------------------------------------- BUSINESS EXPERIENCE WITHIN PAST FIVE NAME AND PRINCIPAL BUSINESS ADDRESS YEARS ------------------------------------------------------------------------------- Kevin Molloy Senior Executive Vice President, AXA Financial and MONY Life (since May 2013). Senior Executive Director, AXA Equitable and AXA Equitable Financial Services (since May 2013). Director and Vice Chairman of the Board, AXA Advisors, LLC (since September 2013). Director, AXA Network, LLC (since October 2013). Director and Member of Audit Committee, AXA Corporate Solutions Life Reinsurance Company (since March 2011). Senior Vice President, Business Support and Development, AXA (June 2010 to May 2013). Vice President of Distribution Finance (April 2007 to June 2010), Vice President and head of North American Investor Relations (November 2003 to April 2007), Director of Corporate Finance (1999 to November 2003), AXA Equitable. ------------------------------------------------------------------------------- Jurgen Schwering Senior Vice President and Chief Risk Officer, AXA Financial, Inc. and MONY America (since November 2015); prior thereto, Senior Executive Vice President and Chief Risk Officer (February 2014 to November 2015). Managing Director and Chief Risk Officer, AXA Equitable and AXA Equitable Financial Services (since November 2015); prior thereto, Senior Executive Director and Chief Risk Officer (February 2014 to November 2015). Member of the Board and Head of the Health Insurance, AXA Konzern AG (October 2012 to February 2014); prior thereto, Member of the Board and Chief Investment Officer (January 2007 to October 2012); Chief Investment Officer (March 2004 to December 2006). Head of Investment Strategy (March 2000 to March 2004, Allianz Lebensversicherungs-AG; prior thereto, Executive Assistant for the Chief Financial Officer (September 1997 to March 2000). -------------------------------------------------------------------------------
18 Retirement Investment Account(R) -------------------------------------------------------------------------------- SEPARATE ACCOUNTS UNITS OF INTEREST UNDER GROUP ANNUITY CONTRACTS FUNDS -------------------------------------------------------------------------------- POOLED SEPARATE ACCOUNTS . AllianceBernstein Balanced, Separate Account No. 10 -- Pooled . AllianceBernstein Common Stock, Separate Account No. 4 -- Pooled . AllianceBernstein Mid Cap Growth, Separate Account No. 3 -- Pooled SEPARATE ACCOUNT NO. 66 . AXA Global Equity Managed Volatility . AXA International Core 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/AB Small Cap Growth . Charter/SM/ Multi-Sector Bond . Charter/SM/ Small Cap Value . EQ/BlackRock Basic Value Equity . EQ/Calvert Socially Responsible . EQ/Capital Guardian Research . EQ/Equity 500 Index . EQ/Intermediate Government Bond . EQ/International Equity Index . EQ/JPMorgan Value Opportunities . EQ/Large Cap Growth Index . EQ/Mid Cap Index . EQ/Money Market . EQ/Quality Bond PLUS . EQ/T.Rowe Price Growth Stock . EQ/Wells Fargo Advantage Omega Growth . Multimanager Technology OF AXA EQUITABLE LIFE INSURANCE COMPANY
BY PHONE: BY REGULAR MAIL (CORRESPONDENCE BY REGISTERED, CERTIFIED, OR OVERNIGHT AND CONTRIBUTION CHECKS): DELIVERY (CONTRIBUTION CHECKS ONLY): 1-800-967-4560 AXA Equitable AXA Equitable (service consultants are available weekdays P.O. Box 8095 30 Dan Road 9 a.m. to 5 p.m. Eastern time) Boston, MA 02266-8095 Canton, MA 02021
19
--------------------------------------------------------------------------------------------------------------------------------- FINANCIAL STATEMENTS INDEX --------------------------------------------------------------------------------------------------------------------------------- PAGE --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNTS NO. 10 (POOLED), Report of Independent Registered Public Accounting Firm............................... FSA-1 4 (POOLED), 3 (POOLED) AND 66 (POOLED) --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 10 (POOLED) Statement of Assets and Liabilities, December 31, 2015................................ FSA-2 --------------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2015.......................... FSA-3 --------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014...................................................... FSA-4 --------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015........................................... FSA-5 --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 4 (POOLED) Statement of Assets and Liabilities, December 31, 2015................................ FSA-16 --------------------------------------------------------------------------------------------- Statement of Operations for the Year Ended December 31, 2015.......................... FSA-17 --------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014...................................................... FSA-18 --------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015........................................... FSA-19 --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 3 (POOLED) Statement of Assets and Liabilities, December 31, 2015................................ FSA-28 --------------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2015......................... FSA-29 --------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014...................................................... FSA-30 --------------------------------------------------------------------------------------------- Portfolio of Investments, December 31, 2015........................................... FSA-31 --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT NO. 66 (POOLED) Statements of Assets and Liabilities, December 31, 2015............................... FSA-34 --------------------------------------------------------------------------------------------- Statements of Operations for the Year Ended December 31, 2015......................... FSA-44 --------------------------------------------------------------------------------------------- Statements of Changes in Net Assets for the Years Ended December 31, 2015 and 2014...................................................... FSA-52 --------------------------------------------------------------------------------------------------------------------------------- SEPARATE ACCOUNT 10 (POOLED), Notes to Financial Statements......................................................... FSA-67 4 (POOLED), 3 (POOLED) AND 66 (POOLED) --------------------------------------------------------------------------------------------------------------------------------- AXA EQUITABLE LIFE Reports of Independent Registered Public Accounting Firm.............................. F-1 INSURANCE COMPANY --------------------------------------------------------------------------------------------- Consolidated Balance Sheets as of December 31, 2015 and 2014.......................... F-2 --------------------------------------------------------------------------------------------- Consolidated Statements of Earnings (Loss), Years Ended December 31, 2015, 2014 and 2013................................................ F-3 --------------------------------------------------------------------------------------------- Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2015, 2014 and 2013.......................................... F-4 --------------------------------------------------------------------------------------------- Consolidated Statements of Equity, Years Ended December 31, 2015, 2014 and 2013................................................ F-5 --------------------------------------------------------------------------------------------- Consolidated Statements of Cash Flows, Years Ended December 31, 2015, 2014 and 2013................................................ F-6 --------------------------------------------------------------------------------------------- Notes to Consolidated Financial Statements............................................ F-8 --------------------------------------------------------------------------------------------------------------------------------- The financial statements of the Funds reflect fees, charges and other expenses of the Separate Accounts applicable to contracts under RIA as in effect during the periods covered, as well as the expense charges made in accordance with the terms of all other contracts participating in the respective Funds. ---------------------------------------------------------------------------------------------------------------------------------
20 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors of AXA Equitable Life Insurance Company and Contractowners of Separate Accounts No. 10, 4, 3 and 66 of AXA Equitable Life Insurance Company: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled), and each of the separate Variable Investment Options of Separate Account No. 66, of AXA Equitable Life Insurance Company ("AXA Equitable") at December 31, 2015, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of AXA Equitable's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2015 by correspondence with the custodian, brokers and the underlying funds' transfer agents, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP New York, New York April 18, 2016 FSA-1 #799591 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $14,613,441)....................... $16,060,635 Long-term debt securities -- at fair value (amortized cost: $10,302,025). 10,373,405 Short-term debt securities -- at fair value (amortized cost: $540,018)... 540,018 Rights -- at fair value (cost: $1,772)................................... 883 Cash....................................................................... 379,751 Foreign cash (cost: $29,841)............................................... 29,713 Interest and dividends receivable.......................................... 91,653 Receivable for investment securities sold.................................. 423,231 Fees receivable from Contractowners........................................ 43,876 ----------- Total assets............................................................ 27,943,165 ----------- LIABILITIES: Payable for investments securities purchased............................... 822,793 Due to AXA Equitable's General Account..................................... 105,001 Accrued custody and bank fees.............................................. 18,784 Administrative fees payable................................................ 20 Asset management fee payable............................................... 54,413 Accrued expenses........................................................... 30,395 ----------- Total liabilities....................................................... 1,031,406 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION............... $26,911,759 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 1 $32,725.90 RIA........... 6,855 293.64 MRP........... 351,471 70.27 EPP........... 612 309.98
----------- The accompanying notes are an integral part of these financial statements. FSA-2 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends (net of foreign taxes withheld of $25,012)..................................................... $ 472,140 Interest................................................................................................. 253,037 ----------- Total investment income................................................................................. 725,177 ----------- EXPENSES (NOTE 6): Investment management fees............................................................................... (146,208) Custody and bank fees.................................................................................... (18,222) Other operating expenses................................................................................. (21,989) ----------- Total expenses.......................................................................................... (186,419) ----------- NET INVESTMENT INCOME...................................................................................... 538,758 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS (NOTE 2): Net realized gain from investments and foreign currency transactions..................................... 1,240,726 Change in unrealized depreciation of investments and foreign currency denominated assets and liabilities. (1,710,724) ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS................... (469,998) ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS...................................................... $ 68,760 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-3 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income.................................................................... $ 538,758 $ 673,536 Net realized gain on investments and foreign currency transactions....................... 1,240,726 1,683,031 Net change in unrealized depreciation of investments and foreign currency denominated assets and liabilities................................................................. (1,710,724) (972,838) ----------- ----------- Net increase in assets attributable to operations...................................... 68,760 1,383,729 ----------- ----------- FROM CONTRACTOWNER TRANSACTIONS: Contributions............................................................................ 1,797,162 2,258,398 Withdrawals.............................................................................. (5,422,991) (5,034,197) Asset management fees (Note 6)........................................................... (94,628) (100,493) Administrative fees (Note 6)............................................................. (243,348) (291,604) ----------- ----------- Net decrease in net assets attributable to contractowner transactions.................. (3,963,805) (3,167,896) ----------- ----------- DECREASE IN NET ASSETS.................................................................... (3,895,045) (1,784,167) NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD....... 30,806,804 32,590,971 ----------- ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD............. $26,911,759 $30,806,804 =========== ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-4 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------- COMMON STOCKS -- 59.7% FINANCIALS -- 11.7% BANKS -- 4.9% Bank Leumi Le-Israel BM/(a)/.............. 5,260 $ 18,238 Bank of America Corp...................... 6,960 117,137 Barclays PLC.............................. 9,820 31,602 BNP Paribas SA............................ 540 30,539 Canadian Imperial Bank of Commerce/Canada. 390 25,602 Citigroup, Inc............................ 2,200 113,850 Comerica, Inc............................. 970 40,575 Commonwealth Bank of Australia............ 990 61,110 Fifth Third Bancorp....................... 1,730 34,773 HSBC Holdings PLC......................... 8,880 70,086 ING Groep NV.............................. 1,980 26,778 Intesa Sanpaolo SpA....................... 7,260 24,101 JPMorgan Chase & Co....................... 2,185 144,276 KeyCorp................................... 3,360 44,319 Mitsubishi UFJ Financial Group, Inc....... 9,200 56,940 Mizuho Financial Group, Inc............... 10,000 19,983 PNC Financial Services Group, Inc. (The).. 330 31,452 Raiffeisen Bank International AG/(a)/..... 1,850 27,101 Resona Holdings, Inc...................... 7,300 35,421 Royal Bank of Scotland Group PLC/(a)/..... 3,960 17,599 Societe Generale SA....................... 830 38,232 Sumitomo Mitsui Financial Group, Inc...... 800 30,168 UniCredit SpA............................. 4,180 23,100 Wells Fargo & Co.......................... 2,950 160,362 Westpac Banking Corp...................... 1,945 47,072 Yamaguchi Financial Group, Inc............ 3,000 35,512 ---------- 1,305,928 ---------- CAPITAL MARKETS -- 0.8% 3i Group PLC.............................. 8,850 62,679 Credit Suisse Group AG/(a)/............... 710 15,304 Deutsche Bank AG.......................... 1,740 42,576 Franklin Resources, Inc................... 880 32,401 Legg Mason, Inc........................... 860 33,738 Morgan Stanley............................ 720 22,903 ---------- 209,601 ---------- CONSUMER FINANCE -- 0.7% American Express Co....................... 876 60,926 Capital One Financial Corp................ 350 25,263 Discover Financial Services............... 830 44,505 Synchrony Financial/(a)/.................. 1,620 49,264 ---------- 179,958 ---------- DIVERSIFIED FINANCIAL SERVICES -- 0.8% Berkshire Hathaway, Inc. -- Class B/(a)/.. 630 83,185 Industrivarden AB -- Class C.............. 2,000 34,260 Investment AB Kinnevik -- Class B......... 1,040 32,075 Investor AB -- Class B.................... 1,400 51,516 ORIX Corp................................. 1,600 22,427 ---------- 223,463 ---------- INSURANCE -- 3.3% Aegon NV.................................. 6,160 34,823 Ageas..................................... 1,050 48,714 Allianz SE................................ 480 85,279 American International Group, Inc......... 1,000 61,970 AMP Ltd................................... 10,290 43,288
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ INSURANCE (CONTINUED) Assicurazioni Generali SpA.......................... 1,920 $ 35,058 Axis Capital Holdings Ltd........................... 580 32,608 Chubb Corp. (The)................................... 410 54,382 CNP Assurances...................................... 2,140 28,855 FNF Group........................................... 910 31,550 Hannover Rueck SE................................... 420 48,202 Hartford Financial Services Group, Inc. (The)....... 1,030 44,764 Lincoln National Corp............................... 830 41,716 Mapfre SA........................................... 9,320 23,320 MetLife, Inc........................................ 760 36,640 Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (REG)..................................... 305 61,145 Old Mutual PLC...................................... 11,510 30,273 SCOR SE............................................. 1,100 41,142 Travelers Cos., Inc. (The).......................... 394 44,467 Unum Group.......................................... 1,380 45,940 Zurich Insurance Group AG/(a)/...................... 90 23,135 ---------- 897,271 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) -- 0.7% American Capital Agency Corp........................ 1,940 33,640 GPT Group (The)..................................... 13,230 45,746 H&R Real Estate Investment Trust.................... 2,650 38,249 Land Securities Group PLC........................... 1,650 28,597 Realty Income Corp.................................. 600 30,978 VEREIT, Inc......................................... 3,010 23,839 ---------- 201,049 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.5% CA Immobilien Anlagen AG/(a)/....................... 1,320 24,132 Daito Trust Construction Co., Ltd................... 200 23,083 Kerry Properties Ltd................................ 6,000 16,328 Sino Land Co., Ltd.................................. 18,000 26,221 Swire Pacific Ltd. -- Class A....................... 3,500 39,095 ---------- 128,859 ---------- Total Financials.................................... 3,146,129 ---------- CONSUMER DISCRETIONARY -- 9.2% AUTO COMPONENTS -- 0.5% Cie Generale des Etablissements Michelin -- Class B. 380 36,154 Magna International, Inc. (New York) -- Class A..... 530 21,497 Magna International, Inc. -- Class A................ 600 24,240 Sumitomo Electric Industries Ltd.................... 2,400 33,862 Toyoda Gosei Co., Ltd............................... 1,200 27,238 ---------- 142,991 ---------- AUTOMOBILES -- 1.1% Daihatsu Motor Co., Ltd............................. 2,000 26,958 Daimler AG.......................................... 680 57,307 Fuji Heavy Industries Ltd........................... 800 32,930 Nissan Motor Co., Ltd............................... 2,700 28,248 Peugeot SA/(a)/..................................... 1,820 31,889 Renault SA.......................................... 290 29,016 Toyota Motor Corp................................... 400 24,611 Volkswagen AG....................................... 200 30,916 Volkswagen AG (Preference Shares)................... 210 30,511 ---------- 292,386 ---------- HOTELS, RESTAURANTS & LEISURE -- 1.0% Carnival Corp....................................... 1,110 60,473 Darden Restaurants, Inc............................. 690 43,911
FSA-5 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (CONTINUED) Hilton Worldwide Holdings, Inc............ 1,900 $ 40,660 McDonald's Corp........................... 342 40,404 Starbucks Corp............................ 900 54,027 Yum! Brands, Inc.......................... 560 40,908 -------- 280,383 -------- HOUSEHOLD DURABLES -- 0.9% Berkeley Group Holdings PLC............... 670 36,416 Iida Group Holdings Co., Ltd.............. 1,900 35,185 Leggett & Platt, Inc...................... 970 40,759 Sekisui Chemical Co., Ltd................. 3,000 39,136 Sekisui House Ltd......................... 2,000 33,600 Sony Corp................................. 1,400 34,379 Toll Brothers, Inc./(a)/.................. 560 18,648 -------- 238,123 -------- INTERNET & CATALOG RETAIL -- 0.9% Amazon.com, Inc./(a)/..................... 190 128,419 Expedia, Inc.............................. 410 50,963 Priceline Group, Inc. (The)/(a)/.......... 40 50,998 -------- 230,380 -------- LEISURE PRODUCTS -- 0.2% Bandai Namco Holdings, Inc................ 1,300 27,443 Hasbro, Inc............................... 270 18,187 -------- 45,630 -------- MEDIA -- 2.0% Cablevision Systems Corp. -- Class A...... 730 23,287 CBS Corp. -- Class B...................... 990 46,659 Comcast Corp. -- Class A.................. 2,040 115,117 Interpublic Group of Cos., Inc. (The)..... 1,610 37,481 Sky PLC................................... 2,240 36,712 Time Warner Cable, Inc. -- Class A........ 240 44,542 Time Warner, Inc.......................... 660 42,682 Twenty-First Century Fox, Inc. -- Class A. 1,940 52,690 Twenty-First Century Fox, Inc. -- Class B. 1,480 40,300 Viacom, Inc. -- Class B................... 450 18,522 Walt Disney Co. (The)..................... 470 49,388 Wolters Kluwer NV......................... 790 26,520 -------- 533,900 -------- MULTILINE RETAIL -- 0.3% Kohl's Corp............................... 820 39,056 Macy's, Inc............................... 1,210 42,326 -------- 81,382 -------- SPECIALTY RETAIL -- 1.5% Advance Auto Parts, Inc................... 220 33,112 Bed Bath & Beyond, Inc./(a)/.............. 690 33,292 GameStop Corp. -- Class A................. 990 27,760 Home Depot, Inc. (The).................... 740 97,865 Industria de Diseno Textil SA............. 920 31,593 JB Hi-Fi Ltd.............................. 3,700 52,280 Lowe's Cos., Inc.......................... 390 29,656 Staples, Inc.............................. 4,630 43,846 TJX Cos., Inc. (The)...................... 720 51,055 -------- 400,459 -------- TEXTILES, APPAREL & LUXURY GOODS -- 0.8% Coach, Inc................................ 1,410 46,150 LVMH Moet Hennessy Louis Vuitton SE....... 420 65,942
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS (CONTINUED) NIKE, Inc. -- Class B................. 860 $ 53,750 Pandora A/S........................... 220 27,728 Swatch Group AG (The)................. 440 29,731 ---------- 223,301 ---------- Total Consumer Discretionary.......... 2,468,935 ---------- INFORMATION TECHNOLOGY -- 8.7% COMMUNICATIONS EQUIPMENT -- 0.5% Cisco Systems, Inc.................... 2,980 80,922 F5 Networks, Inc./(a)/................ 560 54,298 ---------- 135,220 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% Corning, Inc.......................... 2,340 42,775 Hitachi Ltd........................... 6,000 33,970 ---------- 76,745 ---------- INTERNET SOFTWARE & SERVICES -- 1.7% Alphabet, Inc. -- Class A/(a)/........ 185 143,932 Alphabet, Inc. -- Class C/(a)/........ 195 147,982 eBay, Inc./(a)/....................... 1,880 51,662 Facebook, Inc. -- Class A/(a)/........ 1,070 111,986 ---------- 455,562 ---------- IT SERVICES -- 1.9% Accenture PLC -- Class A.............. 200 20,900 Atos SE............................... 370 31,049 Cap Gemini SA......................... 210 19,477 Fujitsu Ltd........................... 8,000 39,896 International Business Machines Corp.. 730 100,462 MasterCard, Inc. -- Class A........... 760 73,994 Teradata Corp./(a)/................... 1,250 33,025 Total System Services, Inc............ 590 29,382 Vantiv, Inc. -- Class A/(a)/.......... 800 37,936 Visa, Inc. -- Class A................. 580 44,979 Western Union Co. (The) -- Class W.... 2,240 40,118 Xerox Corp............................ 5,020 53,363 ---------- 524,581 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 1.0% Applied Materials, Inc................ 1,150 21,471 Intel Corp............................ 3,240 111,618 Marvell Technology Group Ltd.......... 4,310 38,014 Micron Technology, Inc./(a)/.......... 2,620 37,099 Siltronic AG/(a)/..................... 660 16,196 Texas Instruments, Inc................ 1,030 56,454 ---------- 280,852 ---------- SOFTWARE -- 1.4% Microsoft Corp........................ 4,400 244,112 Oracle Corp........................... 1,650 60,275 salesforce.com, Inc./(a)/............. 530 41,552 VMware, Inc. -- Class A/(a)/.......... 530 29,982 ---------- 375,921 ---------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 1.9% Apple, Inc............................ 3,297 347,042 BlackBerry Ltd./(a)/.................. 3,150 29,117 FUJIFILM Holdings Corp................ 1,200 50,037 Hewlett Packard Enterprise Co......... 1,690 25,688
FSA-6 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS (CONTINUED) HP, Inc.................................. 1,690 $ 20,010 Western Digital Corp..................... 460 27,623 ---------- 499,517 ---------- Total Information Technology............. 2,348,398 ---------- HEALTH CARE -- 8.0% BIOTECHNOLOGY -- 1.5% AbbVie, Inc.............................. 1,260 74,642 Amgen, Inc............................... 410 66,555 Biogen, Inc./(a)/........................ 170 52,080 Celgene Corp./(a)/....................... 470 56,287 Gilead Sciences, Inc..................... 1,140 115,357 Medivation, Inc./(a)/.................... 960 46,406 ---------- 411,327 ---------- HEALTH CARE EQUIPMENT & SUPPLIES -- 0.6% Baxter International, Inc................ 1,190 45,399 Cochlear Ltd............................. 520 35,928 CR Bard, Inc............................. 220 41,677 Intuitive Surgical, Inc./(a)/............ 40 21,846 ResMed, Inc.............................. 470 25,234 ---------- 170,084 ---------- HEALTH CARE PROVIDERS & SERVICES -- 1.7% Aetna, Inc............................... 510 55,141 Alfresa Holdings Corp.................... 1,300 25,654 AmerisourceBergen Corp. -- Class A....... 510 52,892 Anthem, Inc.............................. 420 58,565 Express Scripts Holding Co./(a)/......... 650 56,816 HCA Holdings, Inc./(a)/.................. 320 21,642 McKesson Corp............................ 170 33,529 Medipal Holdings Corp.................... 2,200 37,466 Quest Diagnostics, Inc................... 690 49,087 Suzuken Co., Ltd./Aichi Japan............ 1,210 45,944 UnitedHealth Group, Inc.................. 150 17,646 ---------- 454,382 ---------- PHARMACEUTICALS -- 4.2% Bayer AG................................. 300 37,738 Bristol-Myers Squibb Co.................. 330 22,701 Eli Lilly & Co........................... 370 31,176 GlaxoSmithKline PLC...................... 4,120 83,190 Johnson & Johnson........................ 1,790 183,869 Merck & Co., Inc......................... 1,334 70,462 Novartis AG (REG)........................ 1,600 137,713 Novo Nordisk A/S -- Class B.............. 1,820 105,335 Otsuka Holdings Co., Ltd................. 1,000 35,499 Pfizer, Inc.............................. 4,174 134,737 Roche Holding AG......................... 565 156,660 Sanofi................................... 680 57,927 Teva Pharmaceutical Industries Ltd....... 970 63,283 ---------- 1,120,290 ---------- Total Health Care........................ 2,156,083 ---------- CONSUMER STAPLES -- 6.5% BEVERAGES -- 1.4% Anheuser-Busch InBev SA/NV............... 470 58,466 Carlsberg A/S -- Class B................. 300 26,567 Coca-Cola Co. (The)...................... 1,160 49,834
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------------- BEVERAGES (CONTINUED) Coca-Cola Enterprises, Inc........................ 850 $ 41,854 Heineken Holding NV............................... 600 46,173 Heineken NV....................................... 590 50,257 Molson Coors Brewing Co. -- Class B............... 570 53,534 PepsiCo, Inc...................................... 380 37,970 SABMiller PLC..................................... 310 18,542 ---------- 383,197 ---------- FOOD & STAPLES RETAILING -- 1.1% CVS Health Corp................................... 310 30,309 Delhaize Group.................................... 170 16,539 Empire Co., Ltd. -- Class A....................... 1,950 36,133 Koninklijke Ahold NV.............................. 2,613 55,094 Sysco Corp........................................ 810 33,210 Wal-Mart Stores, Inc.............................. 1,310 80,303 WM Morrison Supermarkets PLC...................... 17,290 37,665 ---------- 289,253 ---------- FOOD PRODUCTS -- 1.8% Archer-Daniels-Midland Co......................... 1,190 43,649 Bunge Ltd......................................... 650 44,382 Campbell Soup Co.................................. 890 46,770 ConAgra Foods, Inc................................ 860 36,258 General Mills, Inc................................ 1,010 58,237 Nestle SA (REG)................................... 2,225 165,272 NH Foods Ltd...................................... 2,000 39,167 Yamazaki Baking Co., Ltd.......................... 2,000 44,934 ---------- 478,669 ---------- HOUSEHOLD PRODUCTS -- 0.5% Clorox Co. (The).................................. 410 52,000 Colgate-Palmolive Co.............................. 1,140 75,947 ---------- 127,947 ---------- PERSONAL PRODUCTS -- 0.4% L'Oreal SA........................................ 320 53,803 Unilever PLC...................................... 1,520 65,183 ---------- 118,986 ---------- TOBACCO -- 1.3% Altria Group, Inc................................. 1,180 68,688 British American Tobacco PLC...................... 2,120 117,708 Imperial Tobacco Group PLC........................ 850 44,886 Philip Morris International, Inc.................. 1,020 89,668 Swedish Match AB.................................. 600 21,230 ---------- 342,180 ---------- Total Consumer Staples............................ 1,740,232 ---------- INDUSTRIALS -- 5.7% AEROSPACE & DEFENSE -- 1.2% Boeing Co. (The).................................. 260 37,593 General Dynamics Corp............................. 340 46,702 L-3 Communications Holdings, Inc.................. 470 56,170 Lockheed Martin Corp.............................. 180 39,087 Northrop Grumman Corp............................. 210 39,650 Precision Castparts Corp.......................... 180 41,762 Spirit AeroSystems Holdings, Inc. -- Class A/(a)/. 780 39,055 Thales SA......................................... 370 27,683 ---------- 327,702 ----------
FSA-7 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- AIR FREIGHT & LOGISTICS -- 0.2% CH Robinson Worldwide, Inc............... 720 $ 44,655 United Parcel Service, Inc. -- Class B... 140 13,472 ---------- 58,127 ---------- AIRLINES -- 0.5% Delta Air Lines, Inc..................... 1,150 58,293 JetBlue Airways Corp./(a)/............... 1,820 41,223 Qantas Airways Ltd./(a)/................. 9,803 29,011 ---------- 128,527 ---------- BUILDING PRODUCTS -- 0.1% Asahi Glass Co., Ltd..................... 6,000 34,345 ---------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% Cintas Corp.............................. 500 45,525 Dai Nippon Printing Co., Ltd............. 4,000 39,522 Toppan Printing Co., Ltd................. 5,000 46,027 ---------- 131,074 ---------- CONSTRUCTION & ENGINEERING -- 0.2% Jacobs Engineering Group, Inc./(a)/...... 1,030 43,208 ---------- ELECTRICAL EQUIPMENT -- 0.3% Fuji Electric Co., Ltd................... 9,000 37,714 OSRAM Licht AG........................... 600 25,120 Vestas Wind Systems A/S.................. 480 33,510 ---------- 96,344 ---------- INDUSTRIAL CONGLOMERATES -- 0.8% CK Hutchison Holdings Ltd................ 2,000 26,884 General Electric Co...................... 4,170 129,895 NWS Holdings Ltd......................... 16,000 23,884 Siemens AG (REG)......................... 250 24,409 ---------- 205,072 ---------- MACHINERY -- 0.5% Dover Corp............................... 430 26,364 Hitachi Construction Machinery Co., Ltd.. 2,800 43,510 Metso Oyj................................ 1,180 26,421 Mitsubishi Heavy Industries Ltd.......... 7,000 30,582 ---------- 126,877 ---------- PROFESSIONAL SERVICES -- 0.5% Adecco SA/(a)/........................... 350 23,969 Equifax, Inc............................. 460 51,230 Experian PLC............................. 2,260 39,936 Randstad Holding NV...................... 280 17,429 ---------- 132,564 ---------- ROAD & RAIL -- 0.7% Canadian National Railway Co............. 550 30,626 Central Japan Railway Co................. 500 88,693 Nippon Express Co., Ltd.................. 5,000 23,477 West Japan Railway Co.................... 500 34,533 ---------- 177,329 ---------- TRADING COMPANIES & DISTRIBUTORS -- 0.1% ITOCHU Corp.............................. 3,500 41,365 ---------- TRANSPORTATION INFRASTRUCTURE -- 0.1% Auckland International Airport Ltd....... 4,590 18,024 ---------- Total Industrials........................ 1,520,558 ----------
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------ ENERGY -- 3.2% ENERGY EQUIPMENT & SERVICES -- 0.2% Schlumberger Ltd........................ 640 $ 44,640 Tenaris SA.............................. 1,740 20,596 -------- 65,236 -------- OIL, GAS & CONSUMABLE FUELS -- 3.0% BP PLC.................................. 12,190 63,335 Chevron Corp............................ 1,050 94,458 Eni SpA................................. 3,830 56,883 Exxon Mobil Corp........................ 2,082 162,292 HollyFrontier Corp...................... 410 16,355 JX Holdings, Inc........................ 5,800 24,323 Kinder Morgan, Inc./DE.................. 3,940 58,785 Phillips 66............................. 330 26,994 Repsol SA............................... 1,770 19,478 Royal Dutch Shell PLC -- Class A........ 2,300 52,082 Royal Dutch Shell PLC -- Class B........ 1,140 25,976 Tesoro Corp............................. 260 27,396 TOTAL SA................................ 1,510 67,667 Valero Energy Corp...................... 1,050 74,246 Woodside Petroleum Ltd.................. 1,500 31,202 -------- 801,472 -------- Total Energy............................ 866,708 -------- MATERIALS -- 2.8% CHEMICALS -- 2.0% Asahi Kasei Corp........................ 5,000 33,782 BASF SE................................. 955 73,366 Daicel Corp............................. 1,600 23,791 Dow Chemical Co. (The).................. 1,260 64,865 EI du Pont de Nemours & Co.............. 440 29,304 JSR Corp................................ 1,400 21,800 LyondellBasell Industries NV -- Class A. 700 60,830 Mitsubishi Chemical Holdings Corp....... 7,000 44,376 Mitsubishi Gas Chemical Co., Inc........ 7,000 35,765 Novozymes A/S -- Class B................ 600 28,717 Potash Corp. of Saskatchewan, Inc....... 900 15,355 Sherwin-Williams Co. (The).............. 200 51,920 Yara International ASA.................. 920 39,569 -------- 523,440 -------- CONSTRUCTION MATERIALS -- 0.3% CRH PLC................................. 1,710 49,294 Fletcher Building Ltd................... 7,830 38,981 -------- 88,275 -------- CONTAINERS & PACKAGING -- 0.2% Amcor Ltd./Australia.................... 3,080 29,876 Sealed Air Corp......................... 740 33,004 -------- 62,880 -------- PAPER & FOREST PRODUCTS -- 0.3% UPM-Kymmene Oyj......................... 4,040 74,973 -------- Total Materials......................... 749,568 -------- UTILITIES -- 2.0% ELECTRIC UTILITIES -- 1.5% Chubu Electric Power Co., Inc........... 1,600 21,892 EDP -- Energias de Portugal SA.......... 12,740 45,888
FSA-8 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- ELECTRIC UTILITIES (CONTINUED) Enel SpA.................................. 5,870 $ 24,604 Entergy Corp.............................. 470 32,129 Exelon Corp............................... 1,700 47,209 Iberdrola SA.............................. 9,610 68,097 Mighty River Power Ltd.................... 8,390 15,935 NextEra Energy, Inc....................... 660 68,567 Southern Co. (The)........................ 1,490 69,717 ----------- 394,038 ----------- GAS UTILITIES -- 0.1% Gas Natural SDG SA........................ 1,760 35,875 ----------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.1% NRG Energy, Inc........................... 3,560 41,901 ----------- MULTI-UTILITIES -- 0.3% Consolidated Edison, Inc.................. 750 48,203 Public Service Enterprise Group, Inc...... 680 26,309 ----------- 74,512 ----------- Total Utilities........................... 546,326 ----------- TELECOMMUNICATION SERVICES -- 1.9% DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.6% AT&T, Inc................................. 2,938 101,097 Nippon Telegraph & Telephone Corp......... 1,700 67,600 Orange SA................................. 1,740 29,091 Proximus SADP............................. 690 22,444 Spark New Zealand Ltd..................... 19,600 44,175 Telecom Italia SpA (ordinary Shares)/(a)/. 23,200 29,389 Telecom Italia SpA (Savings Shares)....... 18,800 19,287 TeliaSonera AB............................ 7,210 35,850 TELUS Corp................................ 1,010 27,818 Verizon Communications, Inc............... 1,030 47,607 ----------- 424,358 ----------- WIRELESS TELECOMMUNICATION SERVICES -- 0.3% Vodafone Group PLC........................ 28,790 93,340 ----------- Total Telecommunication Services.......... 517,698 ----------- Total Common Stocks (cost $14,613,441)....................... 16,060,635 ----------- PRINCIPAL AMOUNT (000) ----------------------------------------------------------------- LONG-TERM DEBT SECURITIES -- 38.5% GOVERNMENTS - TREASURIES -- 13.5% UNITED STATES -- 13.5% U.S. Treasury Bonds 2.75%, 8/15/42........................... $ 10 9,558 2.875%, 5/15/43......................... 10 9,750 3.00%, 5/15/42-11/15/45................. 281 280,318 3.125%, 2/15/43......................... 35 35,872 3.625%, 8/15/43-2/15/44................. 78 88,173 4.375%, 2/15/38......................... 29 36,597 4.625%, 2/15/40......................... 164 213,616 6.25%, 5/15/30.......................... 38 54,664
PRINCIPAL AMOUNT (000) U.S. $ VALUE -------------------------------------------------------------------------- UNITED STATES (CONTINUED) U.S. Treasury Notes 0.50%, 3/31/17.................................... $ 220 $ 218,995 0.625%, 5/31/17-9/30/17.......................... 638 634,759 0.875%, 6/15/17.................................. 394 393,569 1.25%, 4/30/19................................... 150 149,045 1.375%, 8/31/20-10/31/20......................... 690 678,396 1.50%, 8/31/18-5/31/20........................... 280 278,827 1.625%, 6/30/20-7/31/20.......................... 103 102,061 1.75%, 9/30/19-12/31/20.......................... 354 355,183 2.50%, 8/15/23................................... 76 77,974 ---------- Total Governments -- Treasuries.................... 3,617,357 ---------- CORPORATES - INVESTMENT GRADE -- 10.9%(B) INDUSTRIAL -- 6.6% BASIC -- 0.4% Barrick Gold Corp. 4.10%, 5/01/23.................................... 2 1,716 Dow Chemical Co. (The) 7.375%, 11/01/29.................................. 5 6,175 8.55%, 5/15/19................................... 12 14,144 Eastman Chemical Co. 3.80%, 3/15/25.................................... 10 9,684 Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas, Inc. 6.50%, 11/15/20................................... 8 5,160 Freeport-McMoRan, Inc. 2.375%, 3/15/18................................... 16 12,480 Glencore Funding LLC 4.125%, 5/30/23................................... 4 2,950 International Paper Co. 3.80%, 1/15/26.................................... 7 6,897 5.15%, 5/15/46................................... 5 4,757 Mosaic Co. (The) 5.625%, 11/15/43.................................. 10 9,585 Rio Tinto Finance USA PLC 2.25%, 12/14/18................................... 30 29,252 Vale Overseas Ltd. 6.875%, 11/21/36.................................. 5 3,495 ---------- 106,295 ---------- CAPITAL GOODS -- 0.4% BAE Systems Holdings, Inc. 3.80%, 10/07/24................................... 27 26,848 General Electric Capital Corp. 4.65%, 10/17/21................................... 13 14,393 Series G 5.625%, 5/01/18.................................. 15 16,359 General Electric Co. Series B 4.10%, 12/15/22/(c)/............................. 7 6,983 Owens Corning 6.50%, 12/01/16/(d)/.............................. 2 2,058 Republic Services, Inc. 5.50%, 9/15/19.................................... 20 22,004 Yamana Gold, Inc. 4.95%, 7/15/24.................................... 32 27,135 ---------- 115,780 ----------
FSA-9 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------------------ COMMUNICATIONS - MEDIA -- 1.4% 21st Century Fox America, Inc. 3.00%, 9/15/22.................................. $ 55 $ 54,198 4.50%, 2/15/21................................. 25 26,901 6.55%, 3/15/33................................. 5 5,698 CBS Corp. 3.50%, 1/15/25.................................. 10 9,533 5.75%, 4/15/20................................. 30 33,299 Comcast Cable Communications Holdings, Inc. 9.455%, 11/15/22................................ 15 20,710 Cox Communications, Inc. 2.95%, 6/30/23.................................. 11 9,690 Discovery Communications LLC 3.45%, 3/15/25.................................. 14 12,674 McGraw Hill Financial, Inc. 4.40%, 2/15/26.................................. 26 26,602 RELX Capital, Inc. 8.625%, 1/15/19................................. 27 31,490 TCI Communications, Inc. 7.875%, 2/15/26................................. 25 33,787 Time Warner Cable, Inc. 4.125%, 2/15/21................................. 30 30,632 4.50%, 9/15/42................................. 10 7,848 Time Warner, Inc. 3.55%, 6/01/24.................................. 19 18,644 4.00%, 1/15/22................................. 9 9,324 4.70%, 1/15/21................................. 10 10,763 7.625%, 4/15/31................................ 6 7,424 Viacom, Inc. 3.875%, 12/15/21................................ 10 9,831 3.875%, 4/01/24................................ 16 14,993 5.625%, 9/15/19................................ 5 5,399 -------- 379,440 -------- COMMUNICATIONS - TELECOMMUNICATIONS -- 0.8% American Tower Corp. 5.05%, 9/01/20.................................. 30 32,387 AT&T, Inc. 3.40%, 5/15/25.................................. 45 43,249 4.45%, 5/15/21................................. 17 18,094 British Telecommunications PLC 9.625%, 12/15/30................................ 12 17,510 DIRECTV Holdings LLC/DIRECTV Financing Co., Inc. 3.80%, 3/15/22.................................. 3 3,019 4.45%, 4/01/24................................. 10 10,271 4.60%, 2/15/21................................. 15 15,888 Telefonica Emisiones SAU 5.462%, 2/16/21................................. 10 11,176 Verizon Communications, Inc. 4.272%, 1/15/36................................. 23 20,764 6.55%, 9/15/43................................. 30 35,616 -------- 207,974 -------- CONSUMER CYCLICAL - AUTOMOTIVE -- 0.2% General Motors Financial Co., Inc. 3.10%, 1/15/19.................................. 25 24,964 3.25%, 5/15/18................................. 2 2,010 4.00%, 1/15/25................................. 5 4,744 4.30%, 7/13/25................................. 5 4,848 -------- 36,566 --------
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------- CONSUMER CYCLICAL - RETAILERS -- 0.3% CVS Health Corp. 3.875%, 7/20/25...................... $ 25 $ 25,515 Kohl's Corp. 4.25%, 7/17/25....................... 27 26,329 Macy's Retail Holdings, Inc. 3.875%, 1/15/22...................... 25 24,617 -------- 76,461 -------- CONSUMER NON-CYCLICAL -- 1.3% Actavis Funding SCS 3.80%, 3/15/25....................... 26 25,867 3.85%, 6/15/24...................... 9 9,016 Agilent Technologies, Inc. 5.00%, 7/15/20....................... 7 7,520 Ahold Finance USA LLC 6.875%, 5/01/29...................... 24 29,419 Altria Group, Inc. 2.625%, 1/14/20...................... 30 30,056 AstraZeneca PLC 6.45%, 9/15/37....................... 10 12,646 Becton Dickinson and Co. 3.734%, 12/15/24..................... 13 13,111 Biogen, Inc. 4.05%, 9/15/25....................... 24 24,109 Bunge Ltd. Finance Corp. 8.50%, 6/15/19....................... 1 1,157 Gilead Sciences, Inc. 3.65%, 3/01/26....................... 23 23,195 Laboratory Corp. of America Holdings 3.60%, 2/01/25....................... 10 9,649 Medtronic, Inc. 3.50%, 3/15/25....................... 30 30,245 Mylan, Inc. 2.60%, 6/24/18....................... 32 31,754 Reynolds American, Inc. 3.25%, 11/01/22...................... 16 15,820 5.85%, 8/15/45...................... 12 13,341 Thermo Fisher Scientific, Inc. 4.15%, 2/01/24....................... 13 13,503 Tyson Foods, Inc. 2.65%, 8/15/19....................... 10 10,006 3.95%, 8/15/24...................... 22 22,588 4.50%, 6/15/22...................... 30 31,931 -------- 354,933 -------- ENERGY -- 1.4% Diamond Offshore Drilling, Inc. 4.875%, 11/01/43..................... 11 6,678 Encana Corp. 3.90%, 11/15/21...................... 10 8,254 Energy Transfer Partners LP 6.125%, 2/15/17...................... 10 10,215 6.625%, 10/15/36.................... 5 4,330 6.70%, 7/01/18...................... 15 15,773 EnLink Midstream Partners LP 5.05%, 4/01/45....................... 21 13,022 Enterprise Products Operating LLC 3.35%, 3/15/23....................... 20 18,085
FSA-10 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------------------- ENERGY (CONTINUED) 3.70%, 2/15/26.................................. $ 27 $ 24,219 5.20%, 9/01/20.................................. 20 20,976 Halliburton Co. 5.00%, 11/15/45.................................. 25 24,714 Kinder Morgan Energy Partners LP 2.65%, 2/01/19................................... 8 7,396 3.95%, 9/01/22.................................. 36 31,339 4.15%, 3/01/22.................................. 11 9,774 6.85%, 2/15/20.................................. 9 9,309 Marathon Petroleum Corp. 5.125%, 3/01/21.................................. 11 11,545 Noble Energy, Inc. 3.90%, 11/15/24.................................. 21 18,690 8.25%, 3/01/19.................................. 29 32,433 Phillips 66 4.30%, 4/01/22................................... 21 21,605 Plains All American Pipeline LP/PAA Finance Corp. 3.60%, 11/01/24.................................. 28 22,463 TransCanada PipeLines Ltd. 6.35%, 5/15/67................................... 28 21,140 Valero Energy Corp. 6.125%, 2/01/20.................................. 17 18,747 Williams Partners LP 3.90%, 1/15/25................................... 6 4,509 4.125%, 11/15/20................................ 16 14,284 ---------- 369,500 ---------- TECHNOLOGY -- 0.4% Hewlett Packard Enterprise Co. 4.90%, 10/15/25.................................. 25 24,515 HP Enterprise Services LLC 7.45%, 10/15/29.................................. 5 5,799 HP, Inc. 3.75%, 12/01/20.................................. 3 2,977 Intel Corp. 4.80%, 10/01/41.................................. 15 15,637 KLA-Tencor Corp. 4.65%, 11/01/24.................................. 22 22,135 Motorola Solutions, Inc. 3.50%, 3/01/23................................... 14 12,281 Seagate HDD Cayman 4.75%, 1/01/25................................... 12 9,993 Total System Services, Inc. 2.375%, 6/01/18.................................. 14 13,855 3.75%, 6/01/23.................................. 8 7,762 ---------- 114,954 ---------- 1,761,903 ---------- FINANCIAL INSTITUTIONS -- 3.7% BANKING -- 2.5% Bank of America Corp. 3.30%, 1/11/23................................... 38 37,404 3.875%, 8/01/25................................. 40 40,605 4.20%, 8/26/24.................................. 17 16,867 5.00%, 5/13/21.................................. 10 10,926 Series L 5.65%, 5/01/18.................................. 50 53,765
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------- BANKING (CONTINUED) Capital One Financial Corp. 4.75%, 7/15/21............................... $ 25 $ 27,079 Compass Bank 5.50%, 4/01/20............................... 35 37,286 Fifth Third Bancorp 3.50%, 3/15/22............................... 12 12,161 Goldman Sachs Group, Inc. (The) 3.85%, 7/08/24............................... 10 10,205 5.75%, 1/24/22.............................. 55 62,547 Series D 6.00%, 6/15/20.............................. 15 16,952 Series G 7.50%, 2/15/19.............................. 35 40,049 HSBC Holdings PLC 4.00%, 3/30/22............................... 30 31,493 5.10%, 4/05/21.............................. 20 22,235 JPMorgan Chase & Co. 3.625%, 5/13/24.............................. 32 32,474 4.40%, 7/22/20.............................. 20 21,348 4.50%, 1/24/22.............................. 20 21,572 Lloyds Bank PLC 4.20%, 3/28/17............................... 30 30,922 Morgan Stanley 3.75%, 2/25/23............................... 20 20,485 4.75%, 3/22/17.............................. 40 41,433 Series G 5.50%, 7/28/21.............................. 38 42,574 Murray Street Investment Trust I 4.647%, 3/09/17.............................. 3 3,091 PNC Funding Corp. 5.125%, 2/08/20.............................. 15 16,496 State Street Corp. 3.70%, 11/20/23.............................. 15 15,608 -------- 665,577 -------- BROKERAGE -- 0.1% Nomura Holdings, Inc. 2.00%, 9/13/16............................... 33 33,132 -------- INSURANCE -- 1.0% Allied World Assurance Co. Holdings Ltd. 7.50%, 8/01/16............................... 13 13,431 American International Group, Inc. 4.875%, 6/01/22.............................. 45 48,597 Anthem, Inc. 3.30%, 1/15/23............................... 11 10,690 Guardian Life Insurance Co. of America (The) 7.375%, 9/30/39.............................. 10 12,741 Hartford Financial Services Group, Inc. (The) 5.125%, 4/15/22.............................. 15 16,473 6.10%, 10/01/41............................. 18 20,893 Lincoln National Corp. 8.75%, 7/01/19............................... 9 10,809 Massachusetts Mutual Life Insurance Co. 8.875%, 6/01/39.............................. 10 14,521 MetLife, Inc. 7.717%, 2/15/19.............................. 22 25,560 Nationwide Mutual Insurance Co. 9.375%, 8/15/39.............................. 25 36,286
FSA-11 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE ------------------------------------------------------------- INSURANCE (CONTINUED) Prudential Financial, Inc. 4.50%, 11/15/20...................... $ 19 $ 20,391 5.625%, 6/15/43..................... 15 15,338 XLIT Ltd. 6.25%, 5/15/27....................... 19 21,857 ---------- 267,587 ---------- REITS -- 0.1% Host Hotels & Resorts LP Series D 3.75%, 10/15/23...................... 3 2,893 Welltower, Inc. 5.25%, 1/15/22....................... 30 32,448 ---------- 35,341 ---------- 1,001,637 ---------- UTILITY -- 0.6% ELECTRIC -- 0.3% Berkshire Hathaway Energy Co. 6.125%, 4/01/36...................... 25 29,154 Constellation Energy Group, Inc. 5.15%, 12/01/20...................... 6 6,514 Exelon Corp. 5.10%, 6/15/45....................... 10 10,073 Exelon Generation Co. LLC 4.25%, 6/15/22....................... 13 13,171 Pacific Gas & Electric Co. 4.50%, 12/15/41...................... 10 9,967 TECO Finance, Inc. 4.00%, 3/15/16....................... 10 10,048 5.15%, 3/15/20...................... 10 10,738 ---------- 89,665 ---------- NATURAL GAS -- 0.3% Engie SA 1.625%, 10/10/17..................... 11 10,941 NiSource Finance Corp. 6.80%, 1/15/19....................... 30 33,655 Sempra Energy 4.05%, 12/01/23...................... 35 36,053 ---------- 80,649 ---------- 170,314 ---------- Total Corporates -- Investment Grade.. 2,933,854 ---------- MORTGAGE PASS-THROUGHS -- 8.8% AGENCY FIXED RATE 30-YEAR -- 8.0% Federal Home Loan Mortgage Corp. Gold 4.00%, 1/01/45...................... 113 120,326 Series 2007 5.50%, 7/01/35...................... 10 10,712 Federal National Mortgage Association 3.00%, 2/01/45-8/01/45.............. 127 126,659 3.50%, 12/01/41-10/01/45............ 535 555,297 4.00%, 9/01/43-8/01/45.............. 525 558,828 4.50%, 1/25/46, TBA................. 319 344,480 5.50%, 1/01/35...................... 18 20,260 Series 2003 5.50%, 4/01/33-7/01/33.............. 36 41,028
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------- AGENCY FIXED RATE 30-YEAR (CONTINUED) Series 2004 5.50%, 4/01/34-11/01/34..................... $ 24 $ 27,083 Government National Mortgage Association 3.00%, 12/20/45............................. 71 72,059 3.50%, 2/01/46, TBA......................... 174 180,960 4.50%, 7/20/45.............................. 95 102,349 ---------- 2,160,041 ---------- AGENCY FIXED RATE 15-YEAR -- 0.8% Federal National Mortgage Association 2.50%, 1/01/31, TBA......................... 82 82,648 3.50%, 11/01/25............................. 115 120,656 ---------- 203,304 ---------- Total Mortgage Pass-Throughs.................. 2,363,345 ---------- AGENCIES -- 1.8% AGENCY DEBENTURES -- 1.8% Federal National Mortgage Association 6.25%, 5/15/29.............................. 70 94,904 6.625%, 11/15/30............................ 145 205,340 Residual Funding Corp. Principal Strip Zero Coupon, 7/15/20......................... 210 191,819 ---------- Total Agencies................................ 492,063 ---------- COMMERCIAL MORTGAGE-BACKED SECURITIES -- 1.4% NON-AGENCY FIXED RATE CMBS -- 1.3% Banc of America Commercial Mortgage Trust Series 2007-4, Class A1A 5.774%, 2/10/51.............................. 48 49,761 Citigroup Commercial Mortgage Trust Series 2006-C4, Class A1A 5.811%, 3/15/49.............................. 7 6,628 Commercial Mortgage Pass Through Certificates Series 2013-CR6, Class A2 2.122%, 3/10/46............................. 65 64,974 Commercial Mortgage Trust Series 2007-GG9, Class A4 5.444%, 3/10/39............................. 25 25,451 JPMorgan Chase Commercial Mortgage Securities Trust Series 2007-LDPX, Class A1A 5.439%, 1/15/49.............................. 65 66,948 Merrill Lynch Mortgage Trust Series 2006-C2, Class A1A 5.739%, 8/12/43.............................. 13 13,203 ML-CFC Commercial Mortgage Trust Series 2006-4, Class A1A 5.166%, 12/12/49................... 27 28,010 UBS-Barclays Commercial Mortgage Trust Series 2012-C3, Class A4 3.091%, 8/10/49.............................. 17 16,906 Series 2012-C4, Class A5 2.85%, 12/10/45............................. 30 29,437 WFRBS Commercial Mortgage Trust Series 2013-C14, Class A5 3.337%, 6/15/46.............................. 33 33,039 ---------- 334,357 ----------
FSA-12 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
PRINCIPAL AMOUNT (000) U.S. $ VALUE --------------------------------------------------------------------------- AGENCY CMBS -- 0.1% Federal Home Loan Mortgage Corp. Multifamily Structured Pass Through Certificates Series K010, Class A1 3.32%, 7/25/20..................................... $ 32 $ 32,774 -------- Total Commercial Mortgage-Backed Securities......... 367,131 -------- INFLATION-LINKED SECURITIES -- 0.9% UNITED STATES -- 0.9% U.S. Treasury Inflation Index 0.125%, 4/15/19 (TIPS)............................. 240 241,670 -------- ASSET-BACKED SECURITIES -- 0.6% AUTOS - FIXED RATE -- 0.4% Avis Budget Rental Car Funding AESOP LLC Series 2014-1A, Class A 2.46%, 7/20/20..................................... 100 100,317 -------- AUTOS - FLOATING RATE -- 0.1% GE Dealer Floorplan Master Note Trust Series 2014-1, Class A 0.782%, 7/20/19/(d)/............................... 32 31,955 -------- HOME EQUITY LOANS - FIXED RATE -- 0.1% Credit-Based Asset Servicing and Securitization LLC Series 2003-CB1, Class AF 3.95%, 1/25/33..................................... 15 14,784 -------- HOME EQUITY LOANS - FLOATING RATE -- 0.0% Asset Backed Funding Certificates Trust Series 2003-WF1, Class A2 1.547%, 12/25/32/(d)/.............................. 9 8,910 Residential Asset Securities Corp. Trust Series 2003-KS3, Class A2 1.022%, 5/25/33/(d)/............................... 2 1,454 -------- 10,364 -------- Total Asset-Backed Securities....................... 157,420 -------- GOVERNMENTS - SOVEREIGN AGENCIES -- 0.2% BRAZIL -- 0.1% Petrobras Global Finance BV 5.75%, 1/20/20..................................... 28 21,980 -------- COLOMBIA -- 0.0% Ecopetrol SA 5.875%, 5/28/45.................................... 9 6,390 -------- GERMANY -- 0.1% Landwirtschaftliche Rentenbank 5.125%, 2/01/17.................................... 20 20,868 -------- Total Governments -- Sovereign Agencies............. 49,238 -------- CORPORATES - NON-INVESTMENT GRADE -- 0.1%(B) INDUSTRIAL -- 0.1% BASIC -- 0.0% Teck Resources Ltd. 4.50%, 1/15/21..................................... 25 12,750 --------
PRINCIPAL AMOUNT (000) U.S. $ VALUE ----------------------------------------------------------------- ENERGY -- 0.1% ONEOK, Inc. 4.25%, 2/01/22.......................... $ 20 $ 14,400 Transocean, Inc. 6.50%, 11/15/20......................... 15 10,350 ----------- 24,750 ----------- Total Corporates -- Non-Investment Grade. 37,500 ----------- LOCAL GOVERNMENTS - MUNICIPAL BONDS -- 0.1% UNITED STATES -- 0.1% State of California Series 2010 7.625%, 3/01/40......................... 25 36,407 ----------- COLLATERALIZED MORTGAGE OBLIGATIONS -- 0.1% NON-AGENCY FIXED RATE -- 0.1% JPMorgan Alternative Loan Trust Series 2006-A3, Class 2A1 2.815%, 7/25/36......................... 43 35,860 ----------- QUASI-SOVEREIGNS -- 0.1% MEXICO -- 0.1% Petroleos Mexicanos 3.50%, 1/30/23.......................... 40 34,900 ----------- GOVERNMENTS - SOVEREIGN BONDS -- 0.0% MEXICO -- 0.0% Mexico Government International Bond Series E 5.95%, 3/19/19.......................... 6 6,660 ----------- Total Long-Term Debt Securities (amortized cost $10,302,025)............ 10,373,405 ----------- SHARES ----------------------------------------------------------------- RIGHTS -- 0.0% ENERGY -- 0.0% OIL, GAS & CONSUMABLE FUELS -- 0.0% Repsol SA, expiring 1/05/16/(a)/ (cost $1,772)........................... 1,770 883 ----------- PRINCIPAL AMOUNT (000) ----------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 2.0% GOVERNMENTS - TREASURIES -- 2.0% U.S. Treasury Notes, 0.31%/d)/ (amortized cost $540,018)............... $ 540 540,018 ----------- TOTAL INVESTMENTS -- 100.2% (cost/amortized cost $25,457,256)...... 26,974,941 Other assets less liabilities -- (0.2)%.. (63,182) ----------- NET ASSETS -- 100.0% $26,911,759 ===========
----------- (a)Non-income producing security. (b)Classification of investment grade and non-investment grade is unaudited. (c)Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. (d)Floating Rate Security. Stated interest rate was in effect at December 31, 2015. FSA-13 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015 Glossary: CFC -- Customer Facility Charge CMBS -- Commercial Mortgage-Backed Securities REG -- Registered Shares REIT -- Real Estate Investment Trust TBA -- To Be Announced TIPS -- Treasury Inflation Protected Security The accompanying notes are an integral part of these financial statements. FSA-14 SEPARATE ACCOUNT NO. 10 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 73.3% United States 6.2% Japan 4.1% United Kingdom 2.3% France 2.1% Switzerland 2.1% Germany 1.4% Australia 1.2% Canada 1.2% Netherlands 0.9% Italy 0.8% Denmark 0.7% Spain 0.7% Sweden 0.6% Belgium 2.4% Other ---- 100.0% ====== ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of long-term investments and may vary over time. "Other" country weightings represent 0.5% or less in the following countries: Austria, Bermuda, Brazil, Colombia, Finland, Hong Kong, Ireland, Israel, Mexico, New Zealand, Norway and Portugal. The accompanying notes are an integral part of these financial statements. FSA-15 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $51,075,617)......... $82,017,887 Cash......................................................... 468,238 Interest and dividends receivable............................ 81,464 Fees receivable from Contractowners.......................... 14,131 ----------- Total assets.............................................. 82,581,720 ----------- LIABILITIES: Due to AXA Equitable's General Account....................... 7,366 Accrued custody and bank fees................................ 8,858 Administrative fees payable.................................. 766 Asset management fee payable................................. 25,706 Accrued expenses............................................. 65,650 Variation margin due to broker............................... 2,880 ----------- Total liabilities......................................... 111,226 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION. $82,470,494 =========== Amount retained by AXA Equitable in Separate Account No. 4... $ 5,242,960 Net assets attributable to contractowners.................... 40,149,073 Net assets allocated to contracts in payout period........... 37,078,461 ----------- NET ASSETS................................................... $82,470,494 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 2,516 $17,164.79 RIA........... 1,891 1,586.06 MRP........... 56,626 615.04 EPP........... 845 1,645.69
----------- The accompanying notes are an integral part of these financial statements. FSA-16 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends (net of foreign taxes withheld of $137)................................ $ 1,436,537 ----------- Total investment income......................................................... 1,436,537 ----------- EXPENSES (NOTE 6): Investment management fees....................................................... (122,972) Custody and bank fees............................................................ (8,050) Other operating expenses......................................................... (66,917) ----------- Total expenses.................................................................. (197,939) ----------- NET INVESTMENT INCOME.............................................................. 1,238,598 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES CONTRACTS (NOTE 2): Net realized gain from investments............................................... 11,232,955 Net realized loss on futures contracts........................................... (36,841) Change in unrealized depreciation of investments................................. (7,465,306) Change in unrealized depreciation on futures contracts........................... (9,337) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FUTURES CONTRACTS.............. 3,721,471 ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS.............................. $ 4,960,069 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-17 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income..................................................................... $ 1,238,598 $ 1,259,822 Net realized gain on investments and futures contracts.................................... 11,196,114 7,695,542 Net change in unrealized appreciation (depreciation) of investments and futures contracts. (7,474,643) 1,679,002 ------------ ------------ Net increase in net assets attributable to operations.................................... 4,960,069 10,634,366 ------------ ------------ FROM CONTRACTOWNER TRANSACTIONS: Contributions............................................................................. 3,591,850 4,896,954 Withdrawals............................................................................... (12,757,209) (10,673,660) Asset management fees (Note 6)............................................................ (63,578) (62,039) Administrative fees (Note 6).............................................................. (342,602) (376,762) ------------ ------------ Net decrease in net assets attributable to contractowner transactions.................... (9,571,539) (6,215,507) ------------ ------------ Net increase (decrease) in net assets attributable to AXA Equitable's transactions*...... (4,498,097) 2,263 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS........................................................... (9,109,567) 4,421,122 NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD......... 91,580,061 87,158,939 ------------ ------------ NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD............... $ 82,470,494 $ 91,580,061 ============ ============
----------- The accompanying notes are an integral part of these financial statements. * Excludes $5,192,000 of surplus transfers from contractowners to AXA Equitable retention account. FSA-18 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------------- COMMON STOCKS -- 99.5% INFORMATION TECHNOLOGY -- 27.8% COMMUNICATIONS EQUIPMENT -- 0.5% Arista Networks, Inc./(a)/............................ 190 $ 14,790 ARRIS Group, Inc./(a)/................................ 150 4,586 CommScope Holding Co., Inc./(a)/...................... 266 6,887 F5 Networks, Inc./(a)/................................ 600 58,176 Harris Corp........................................... 180 15,642 Juniper Networks, Inc................................. 530 14,628 Motorola Solutions, Inc............................... 1,370 93,776 Palo Alto Networks, Inc./(a)/......................... 610 107,445 QUALCOMM, Inc......................................... 1,840 91,972 ---------- 407,902 ---------- ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS -- 0.3% Amphenol Corp. -- Class A............................. 2,310 120,651 CDW Corp./DE.......................................... 941 39,560 Cognex Corp........................................... 600 20,262 FLIR Systems, Inc..................................... 680 19,088 Ingram Micro, Inc. -- Class A......................... 50 1,519 IPG Photonics Corp./(a)/.............................. 260 23,182 Jabil Circuit, Inc.................................... 250 5,822 Keysight Technologies, Inc./(a)/...................... 1,050 29,746 National Instruments Corp............................. 100 2,869 Trimble Navigation Ltd./(a)/.......................... 80 1,716 Zebra Technologies Corp. -- Class A/(a)/.............. 420 29,253 ---------- 293,668 ---------- INTERNET SOFTWARE & SERVICES -- 7.5% Akamai Technologies, Inc./(a)/........................ 1,370 72,103 Alphabet, Inc. -- Class A/(a)/........................ 2,280 1,773,863 Alphabet, Inc. -- Class C/(a)/........................ 2,371 1,799,304 CoStar Group, Inc./(a)/............................... 300 62,007 eBay, Inc./(a)/....................................... 9,380 257,762 Facebook, Inc. -- Class A/(a)/........................ 16,750 1,753,055 GoDaddy, Inc. -- Class A/(a)/......................... 150 4,809 IAC/InterActiveCorp................................... 490 29,425 LinkedIn Corp. -- Class A/(a)/........................ 920 207,074 Pandora Media, Inc./(a)/.............................. 1,624 21,778 Rackspace Hosting, Inc./(a)/.......................... 880 22,282 Twitter, Inc./(a)/.................................... 4,343 100,497 VeriSign, Inc./(a)/................................... 740 64,646 Yelp, Inc./(a)/....................................... 500 14,400 Zillow Group, Inc. -- Class A/ (a)/................... 200 5,208 Zillow Group, Inc. -- Class C/ (a)/................... 400 9,392 ---------- 6,197,605 ---------- IT SERVICES -- 6.1% Accenture PLC -- Class A.............................. 4,860 507,870 Alliance Data Systems Corp./(a)/...................... 530 146,582 Automatic Data Processing, Inc........................ 2,920 247,382 Black Knight Financial Services, Inc. -- Class A/(a)/. 100 3,306 Booz Allen Hamilton Holding Corp...................... 650 20,053 Broadridge Financial Solutions, Inc................... 880 47,282 Cognizant Technology Solutions Corp. -- Class A/(a)/.. 4,720 283,294 CoreLogic, Inc./United States/(a)/.................... 300 10,158 DST Systems, Inc...................................... 250 28,515 Fidelity National Information Services, Inc........... 880 53,328 First Data Corp. -- Class A/(a)/...................... 1,087 17,414 Fiserv, Inc./(a)/..................................... 1,870 171,030 FleetCor Technologies, Inc./(a)/...................... 744 106,340
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- IT SERVICES (CONTINUED) Gartner, Inc./(a)/...................... 600 $ 54,420 Genpact Ltd./(a)/....................... 1,180 29,476 Global Payments, Inc.................... 960 61,930 International Business Machines Corp.... 3,965 545,663 Jack Henry & Associates, Inc............ 650 50,739 Leidos Holdings, Inc.................... 50 2,813 MasterCard, Inc. -- Class A............. 7,750 754,540 Paychex, Inc............................ 2,130 112,656 PayPal Holdings, Inc./(a)/.............. 9,380 339,556 Sabre Corp.............................. 800 22,376 Square, Inc. -- Class A/(a)/............ 188 2,461 Teradata Corp./(a)/..................... 750 19,815 Total System Services, Inc.............. 1,250 62,250 Vantiv, Inc. -- Class A/(a)/............ 1,080 51,214 VeriFone Systems, Inc./(a)/............. 800 22,416 Visa, Inc. -- Class A................... 15,210 1,179,536 Western Union Co. (The) -- Class W...... 3,940 70,565 WEX, Inc./(a)/.......................... 300 26,520 ---------- 5,051,500 ---------- SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT -- 2.0% Analog Devices, Inc..................... 2,150 118,938 Applied Materials, Inc.................. 5,600 104,552 Atmel Corp.............................. 3,200 27,552 Avago Technologies Ltd.................. 2,000 290,300 Broadcom Corp. -- Class A............... 300 17,346 Intel Corp.............................. 2,500 86,125 KLA-Tencor Corp......................... 1,200 83,220 Lam Research Corp....................... 900 71,478 Linear Technology Corp.................. 1,850 78,569 Maxim Integrated Products, Inc.......... 700 26,600 Microchip Technology, Inc............... 1,600 74,464 Micron Technology, Inc./(a)/............ 600 8,496 NXP Semiconductors NV/(a)/.............. 1 57 ON Semiconductor Corp./(a)/............. 3,050 29,890 Qorvo, Inc./(a)/........................ 1,100 55,990 Skyworks Solutions, Inc................. 1,450 111,403 SunEdison, Inc./(a)/.................... 1,850 9,417 SunPower Corp./(a)/..................... 50 1,501 Texas Instruments, Inc.................. 8,050 441,220 Xilinx, Inc............................. 450 21,137 ---------- 1,658,255 ---------- SOFTWARE -- 5.6% Adobe Systems, Inc./(a)/................ 3,840 360,730 ANSYS, Inc./(a)/........................ 130 12,025 Autodesk, Inc./(a)/..................... 1,270 77,381 Cadence Design Systems, Inc./(a)/....... 2,270 47,239 CDK Global, Inc......................... 1,190 56,489 Citrix Systems, Inc./(a)/............... 1,220 92,293 Electronic Arts, Inc./(a)/.............. 2,400 164,928 FireEye, Inc./(a)/...................... 1,017 21,093 Fortinet, Inc./(a)/..................... 1,030 32,105 Intuit, Inc............................. 2,170 209,405 King Digital Entertainment PLC.......... 550 9,834 Microsoft Corp./(b)/.................... 35,570 1,973,424 NetSuite, Inc./(a)/..................... 330 27,925 Oracle Corp............................. 14,735 538,270 PTC, Inc./(a)/.......................... 800 27,704 Red Hat, Inc./(a)/...................... 1,410 116,762
FSA-19 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- SOFTWARE (CONTINUED) salesforce.com, Inc./(a)/.................... 5,110 $ 400,624 ServiceNow, Inc./(a)/........................ 1,157 100,150 SolarWinds, Inc./(a)/........................ 410 24,149 Solera Holdings, Inc......................... 440 24,125 Splunk, Inc./(a)/............................ 930 54,693 SS&C Technologies Holdings, Inc.............. 500 34,135 Synopsys, Inc./(a)/.......................... 50 2,280 Tableau Software, Inc. -- Class A/(a)/....... 400 37,688 Ultimate Software Group, Inc. (The)/(a)/..... 250 48,877 VMware, Inc. -- Class A/(a)/................. 560 31,679 Workday, Inc. -- Class A/(a)/................ 760 60,557 ----------- 4,586,564 ----------- TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS -- 5.8% 3D Systems Corp./(a)/........................ 300 2,607 Apple, Inc................................... 44,690 4,704,069 EMC Corp./MA................................. 1,180 30,302 NetApp, Inc.................................. 620 16,449 ----------- 4,753,427 ----------- Total Information Technology................. 22,948,921 ----------- CONSUMER DISCRETIONARY -- 21.3% AUTO COMPONENTS -- 0.5% BorgWarner, Inc.............................. 1,750 75,652 Delphi Automotive PLC........................ 2,200 188,606 Gentex Corp./MI.............................. 1,100 17,611 Johnson Controls, Inc........................ 1,050 41,465 Lear Corp.................................... 500 61,415 Visteon Corp./(a)/........................... 350 40,075 ----------- 424,824 ----------- AUTOMOBILES -- 0.3% Harley-Davidson, Inc......................... 800 36,312 Tesla Motors, Inc./(a)/...................... 820 196,808 Thor Industries, Inc......................... 350 19,653 ----------- 252,773 ----------- DISTRIBUTORS -- 0.2% Genuine Parts Co............................. 1,050 90,184 LKQ Corp./(a)/............................... 2,360 69,927 ----------- 160,111 ----------- DIVERSIFIED CONSUMER SERVICES -- 0.2% H&R Block, Inc............................... 1,900 63,289 Service Corp. International/US............... 1,550 40,331 ServiceMaster Global Holdings, Inc./(a)/..... 741 29,077 ----------- 132,697 ----------- HOTELS, RESTAURANTS & LEISURE -- 3.4% Aramark...................................... 1,324 42,699 Brinker International, Inc................... 400 19,180 Chipotle Mexican Grill, Inc. -- Class A/(a)/. 300 143,955 Choice Hotels International, Inc............. 250 12,603 Darden Restaurants, Inc...................... 100 6,364 Domino's Pizza, Inc.......................... 450 50,063 Dunkin' Brands Group, Inc.................... 746 31,772 Extended Stay America, Inc................... 450 7,155 Hilton Worldwide Holdings, Inc............... 3,974 85,044 International Game Technology PLC............ 400 6,472 Las Vegas Sands Corp......................... 2,800 122,752
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------- HOTELS, RESTAURANTS & LEISURE (CONTINUED) Marriott International, Inc./MD -- Class A........... 1,628 $ 109,141 McDonald's Corp...................................... 7,400 874,236 MGM Resorts International/(a)/....................... 150 3,408 Norwegian Cruise Line Holdings Ltd./(a)/............. 890 52,154 Panera Bread Co. -- Class A/(a)/..................... 200 38,956 Six Flags Entertainment Corp......................... 480 26,371 Starbucks Corp....................................... 11,550 693,346 Starwood Hotels & Resorts Worldwide, Inc............. 1,300 90,064 Wyndham Worldwide Corp............................... 900 65,385 Wynn Resorts Ltd..................................... 500 34,595 Yum! Brands, Inc..................................... 3,350 244,717 ---------- 2,760,432 ---------- HOUSEHOLD DURABLES -- 0.6% DR Horton, Inc....................................... 1,000 32,030 GoPro, Inc. -- Class A/(a)/.......................... 616 11,094 Harman International Industries, Inc................. 500 47,105 Jarden Corp./(a)/.................................... 1,625 92,820 Leggett & Platt, Inc................................. 1,000 42,020 Lennar Corp. -- Class A.............................. 450 22,010 Lennar Corp. -- Class B.............................. 50 2,009 Mohawk Industries, Inc./(a)/......................... 350 66,286 Newell Rubbermaid, Inc............................... 1,000 44,080 NVR, Inc./(a)/....................................... 50 82,150 Tempur Sealy International, Inc./(a)/................ 400 28,184 Toll Brothers, Inc./(a)/............................. 400 13,320 TopBuild Corp./(a)/.................................. 272 8,369 Tupperware Brands Corp............................... 350 19,478 Whirlpool Corp....................................... 50 7,344 ---------- 518,299 ---------- INTERNET & CATALOG RETAIL -- 4.0% Amazon.com, Inc./(a)/................................ 3,040 2,054,706 Expedia, Inc......................................... 851 105,805 Groupon, Inc./(a)/................................... 3,840 11,789 Liberty Interactive Corp. QVC Group -- Class A/(a)/.. 1,690 46,171 Liberty Ventures -- Series A/(a)/.................... 1,035 46,689 Netflix, Inc./(a)/................................... 3,293 376,653 Priceline Group, Inc. (The)/(a)/..................... 433 552,053 TripAdvisor, Inc./(a)/............................... 820 69,905 ---------- 3,263,771 ---------- LEISURE PRODUCTS -- 0.1% Brunswick Corp./DE................................... 450 22,729 Hasbro, Inc.......................................... 650 43,784 Polaris Industries, Inc.............................. 550 47,272 Vista Outdoor, Inc./(a)/............................. 50 2,226 ---------- 116,011 ---------- MEDIA -- 5.2% AMC Networks, Inc. -- Class A/(a)/................... 400 29,872 Cablevision Systems Corp. -- Class A................. 200 6,380 CBS Corp. -- Class B................................. 3,750 176,737 Charter Communications, Inc. -- Class A/(a)/......... 650 119,015 Cinemark Holdings, Inc............................... 850 28,415 Clear Channel Outdoor Holdings, Inc. -- Class A/(a)/. 100 559 Comcast Corp. -- Class A............................. 17,500 987,525 Discovery Communications, Inc. -- Class A/(a)/....... 1,050 28,014 Discovery Communications, Inc. -- Class C/(a)/....... 1,850 46,657 DISH Network Corp. -- Class A/(a)/................... 1,100 62,898 Interpublic Group of Cos., Inc. (The)................ 3,200 74,496
FSA-20 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE -------------------------------------------------------------------- MEDIA (CONTINUED) Lions Gate Entertainment Corp................... 650 $ 21,054 Live Nation Entertainment, Inc./(a)/............ 1,100 27,027 Madison Square Garden Co. (The) -- Class A/(a)/. 166 26,859 Morningstar, Inc................................ 150 12,062 MSG Networks, Inc./(a)/......................... 400 8,320 Omnicom Group, Inc.............................. 1,900 143,754 Regal Entertainment Group -- Class A............ 550 10,379 Scripps Networks Interactive, Inc. -- Class A... 650 35,886 Sirius XM Holdings, Inc./(a)/................... 17,800 72,446 Starz -- Class A/(a)/........................... 600 20,100 Time Warner Cable, Inc. -- Class A.............. 2,250 417,577 Time Warner, Inc................................ 3,300 213,411 Twenty-First Century Fox, Inc. -- Class A....... 6,210 168,664 Twenty-First Century Fox, Inc. -- Class B....... 2,450 66,713 Viacom, Inc. -- Class A......................... 50 2,200 Viacom, Inc. -- Class B......................... 2,625 108,045 Walt Disney Co. (The)........................... 13,200 1,387,056 ---------- 4,302,121 ---------- MULTILINE RETAIL -- 0.6% Dillard's, Inc. -- Class A...................... 30 1,971 Dollar General Corp............................. 2,370 170,332 Dollar Tree, Inc./(a)/.......................... 1,806 139,459 Macy's, Inc..................................... 1,890 66,112 Nordstrom, Inc.................................. 1,050 52,301 Sears Holdings Corp./(a)/....................... 20 411 Target Corp..................................... 428 31,077 ---------- 461,663 ---------- SPECIALTY RETAIL -- 4.7% Aaron's, Inc.................................... 45 1,008 Advance Auto Parts, Inc......................... 610 91,811 AutoNation, Inc./(a)/........................... 480 28,637 AutoZone, Inc./(a)/............................. 290 215,154 Bed Bath & Beyond, Inc./(a)/.................... 1,310 63,207 Cabela's, Inc./(a)/............................. 50 2,337 CarMax, Inc./(a)/............................... 1,600 86,352 CST Brands, Inc................................. 420 16,439 Dick's Sporting Goods, Inc...................... 490 17,321 DSW, Inc. -- Class A............................ 50 1,193 Foot Locker, Inc................................ 880 57,279 Gap, Inc. (The)................................. 1,820 44,954 GNC Holdings, Inc. -- Class A................... 600 18,612 Home Depot, Inc. (The).......................... 10,120 1,338,370 L Brands, Inc................................... 1,930 184,933 Lowe's Cos., Inc................................ 7,314 556,157 Michaels Cos., Inc. (The)/(a)/.................. 394 8,711 Murphy USA, Inc./(a)/........................... 20 1,215 O'Reilly Automotive, Inc./(a)/.................. 830 210,339 Office Depot, Inc./(a)/......................... 750 4,230 Penske Automotive Group, Inc.................... 90 3,811 Ross Stores, Inc................................ 3,190 171,654 Sally Beauty Holdings, Inc./(a)/................ 1,180 32,910 Signet Jewelers Ltd............................. 660 81,635 Tiffany & Co.................................... 680 51,877 TJX Cos., Inc. (The)............................ 5,220 370,150 Tractor Supply Co............................... 1,000 85,500 Ulta Salon Cosmetics & Fragrance, Inc./(a)/..... 540 99,900 Urban Outfitters, Inc./(a)/..................... 640 14,560 Williams-Sonoma, Inc............................ 630 36,798 ---------- 3,897,054 ----------
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- TEXTILES, APPAREL & LUXURY GOODS -- 1.5% Carter's, Inc............................ 350 $ 31,160 Coach, Inc............................... 300 9,819 Fossil Group, Inc./(a)/.................. 250 9,140 Hanesbrands, Inc......................... 3,100 91,233 Kate Spade & Co./(a)/.................... 950 16,882 lululemon athletica, Inc./(a)/........... 800 41,976 Michael Kors Holdings Ltd./(a)/.......... 1,500 60,090 NIKE, Inc. -- Class B.................... 10,600 662,500 Ralph Lauren Corp........................ 50 5,574 Skechers U.S.A., Inc. -- Class A/(a)/.... 950 28,700 Under Armour, Inc. -- Class A/(a)/....... 1,350 108,823 VF Corp.................................. 2,600 161,850 ----------- 1,227,747 ----------- Total Consumer Discretionary............. 17,517,503 ----------- HEALTH CARE -- 17.0% BIOTECHNOLOGY -- 7.1% AbbVie, Inc.............................. 12,809 758,805 Agios Pharmaceuticals, Inc./(a)/......... 200 12,984 Alexion Pharmaceuticals, Inc./(a)/....... 1,700 324,275 Alkermes PLC/(a)/........................ 900 71,442 Alnylam Pharmaceuticals, Inc./(a)/....... 500 47,070 Amgen, Inc............................... 5,900 957,747 Baxalta, Inc............................. 2,600 101,478 Biogen, Inc./(a)/........................ 1,749 535,806 BioMarin Pharmaceutical, Inc./(a)/....... 1,200 125,712 Bluebird Bio, Inc./(a)/.................. 200 12,844 Celgene Corp./(a)/....................... 6,126 733,650 Gilead Sciences, Inc..................... 11,416 1,155,185 Incyte Corp./(a)/........................ 1,200 130,140 Intercept Pharmaceuticals, Inc./(a)/..... 150 22,403 Intrexon Corp./(a)/...................... 350 10,553 Ionis Pharmaceuticals, Inc./(a)/......... 850 52,640 Juno Therapeutics, Inc./(a)/............. 77 3,386 Medivation, Inc./(a)/.................... 1,150 55,591 OPKO Health, Inc./(a)/................... 2,250 22,612 Puma Biotechnology, Inc./(a)/............ 200 15,680 Regeneron Pharmaceuticals, Inc./(a)/..... 650 352,865 Seattle Genetics, Inc./(a)/.............. 750 33,660 United Therapeutics Corp./(a)/........... 400 62,644 Vertex Pharmaceuticals, Inc./(a)/........ 1,900 239,077 ----------- 5,838,249 ----------- HEALTH CARE EQUIPMENT & SUPPLIES -- 1.7% Alere, Inc./(a)/......................... 350 13,682 Align Technology, Inc./(a)/.............. 550 36,218 Baxter International, Inc................ 2,600 99,190 Becton Dickinson and Co.................. 1,650 254,248 Boston Scientific Corp./(a)/............. 750 13,830 Cooper Cos., Inc. (The).................. 300 40,260 CR Bard, Inc............................. 600 113,664 DENTSPLY International, Inc.............. 200 12,170 DexCom, Inc./(a)/........................ 550 45,045 Edwards Lifesciences Corp./(a)/.......... 1,600 126,368 Hill-Rom Holdings, Inc................... 400 19,224 Hologic, Inc./(a)/....................... 1,900 73,511 IDEXX Laboratories, Inc./(a)/............ 650 47,398 Intuitive Surgical, Inc./(a)/............ 300 163,848 ResMed, Inc.............................. 1,050 56,374 Sirona Dental Systems, Inc./(a)/......... 450 49,307
FSA-21 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ HEALTH CARE EQUIPMENT & SUPPLIES (CONTINUED) St Jude Medical, Inc................................ 1,200 $ 74,124 Stryker Corp........................................ 1,300 120,822 Varian Medical Systems, Inc./(a)/................... 800 64,640 Zimmer Biomet Holdings, Inc......................... 100 10,259 ---------- 1,434,182 ---------- HEALTH CARE PROVIDERS & SERVICES -- 3.6% Acadia Healthcare Co., Inc./(a)/.................... 400 24,984 Aetna, Inc.......................................... 700 75,684 AmerisourceBergen Corp. -- Class A.................. 1,700 176,307 Anthem, Inc......................................... 450 62,748 Brookdale Senior Living, Inc./(a)/.................. 300 5,538 Cardinal Health, Inc................................ 2,350 209,784 Centene Corp./(a)/.................................. 850 55,938 Cigna Corp.......................................... 2,050 299,976 DaVita HealthCare Partners, Inc./(a)/............... 400 27,884 Envision Healthcare Holdings, Inc./(a)/............. 1,403 36,436 Express Scripts Holding Co./(a)/.................... 4,370 381,982 HCA Holdings, Inc./(a)/............................. 200 13,526 Health Net, Inc./CA/(a)/............................ 100 6,846 Henry Schein, Inc./(a)/............................. 700 110,733 Humana, Inc......................................... 1,050 187,435 Laboratory Corp. of America Holdings/(a)/........... 270 33,383 LifePoint Health, Inc./(a)/......................... 50 3,670 McKesson Corp....................................... 1,800 355,014 MEDNAX Inc/(a)/..................................... 350 25,081 Patterson Cos., Inc................................. 350 15,824 Premier, Inc. -- Class A/(a)/....................... 289 10,193 Tenet Healthcare Corp./(a)/......................... 712 21,574 UnitedHealth Group, Inc............................. 7,050 829,362 Universal Health Services, Inc. -- Class B.......... 150 17,924 VCA, Inc./(a)/...................................... 600 33,000 ---------- 3,020,826 ---------- HEALTH CARE TECHNOLOGY -- 0.3% Allscripts Healthcare Solutions, Inc./(a)/.......... 350 5,383 athenahealth, Inc./(a)/............................. 350 56,340 Cerner Corp./(a)/................................... 2,250 135,382 IMS Health Holdings, Inc./(a)/...................... 1,000 25,470 Inovalon Holdings, Inc. -- Class A/(a)/............. 164 2,788 Veeva Systems, Inc. -- Class A/(a)/................. 538 15,521 ---------- 240,884 ---------- LIFE SCIENCES TOOLS & SERVICES -- 0.8% Bio-Techne Corp..................................... 150 13,500 Bruker Corp./(a)/................................... 800 19,416 Charles River Laboratories International, Inc./(a)/. 300 24,117 Illumina, Inc./(a)/................................. 1,100 211,139 Mettler-Toledo International, Inc./(a)/............. 250 84,783 PerkinElmer, Inc.................................... 100 5,357 Quintiles Transnational Holdings, Inc./(a)/......... 500 34,330 Thermo Fisher Scientific, Inc....................... 1,100 156,035 VWR Corp./(a)/...................................... 85 2,406 Waters Corp./(a)/................................... 600 80,748 ---------- 631,831 ---------- PHARMACEUTICALS -- 3.5% Akorn, Inc./ (a)/................................... 600 22,386 Allergan PLC/(a)/................................... 1,372 428,750 Bristol-Myers Squibb Co............................. 12,950 890,831 Eli Lilly & Co...................................... 7,550 636,163
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------- PHARMACEUTICALS (CONTINUED) Endo International PLC/(a)/........... 600 $ 36,732 Jazz Pharmaceuticals PLC/(a)/......... 500 70,280 Johnson & Johnson..................... 2,750 282,480 Mallinckrodt PLC/(a)/................. 343 25,598 Merck & Co., Inc...................... 2,450 129,409 Mylan NV/(a)/......................... 2,747 148,530 Perrigo Co. PLC....................... 236 34,149 Zoetis, Inc........................... 3,780 181,138 ----------- 2,886,446 ----------- Total Health Care..................... 14,052,418 ----------- CONSUMER STAPLES -- 11.2% BEVERAGES -- 3.8% Brown-Forman Corp. -- Class A......... 200 22,022 Brown-Forman Corp. -- Class B......... 875 86,870 Coca-Cola Co. (The)................... 30,400 1,305,984 Coca-Cola Enterprises, Inc............ 1,800 88,632 Constellation Brands, Inc. -- Class A. 1,250 178,050 Dr Pepper Snapple Group, Inc.......... 1,500 139,800 Monster Beverage Corp./(a)/........... 1,150 171,304 PepsiCo, Inc.......................... 11,487 1,147,781 ----------- 3,140,443 ----------- FOOD & STAPLES RETAILING -- 2.4% Costco Wholesale Corp................. 3,450 557,175 CVS Health Corp....................... 8,100 791,937 Kroger Co. (The)...................... 7,550 315,817 Rite Aid Corp./(a)/................... 4,500 35,280 Sprouts Farmers Market, Inc./(a)/..... 1,136 30,206 Sysco Corp............................ 1,400 57,400 Walgreens Boots Alliance, Inc......... 950 80,897 Whole Foods Market, Inc............... 2,500 83,750 ----------- 1,952,462 ----------- FOOD PRODUCTS -- 1.7% Blue Buffalo Pet Products, Inc./(a)/.. 160 2,994 Campbell Soup Co...................... 700 36,785 ConAgra Foods, Inc.................... 450 18,972 Flowers Foods, Inc.................... 1,150 24,714 General Mills, Inc.................... 4,600 265,236 Hain Celestial Group, Inc. (The)/(a)/. 750 30,292 Hershey Co. (The)..................... 1,100 98,197 Hormel Foods Corp..................... 1,000 79,080 Ingredion, Inc........................ 50 4,792 Kellogg Co............................ 1,750 126,472 Keurig Green Mountain, Inc............ 950 85,481 Kraft Heinz Co. (The)................. 4,566 332,222 McCormick & Co., Inc./MD.............. 950 81,282 Mead Johnson Nutrition Co. -- Class A. 1,550 122,372 Pilgrim's Pride Corp.................. 50 1,105 Tyson Foods, Inc. -- Class A.......... 100 5,333 WhiteWave Foods Co. (The)/(a)/........ 1,298 50,505 ----------- 1,365,834 ----------- HOUSEHOLD PRODUCTS -- 1.1% Church & Dwight Co., Inc.............. 1,000 84,880 Clorox Co. (The)...................... 850 107,806 Colgate-Palmolive Co.................. 6,150 409,713 Kimberly-Clark Corp................... 2,200 280,060 Spectrum Brands Holdings, Inc......... 200 20,360 ----------- 902,819 -----------
FSA-22 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------------- PERSONAL PRODUCTS -- 0.2% Coty, Inc. -- Class A............................. 554 $ 14,199 Estee Lauder Cos., Inc. (The) -- Class A.......... 1,650 145,299 Herbalife Ltd./(a)/............................... 400 21,448 Nu Skin Enterprises, Inc. -- Class A.............. 100 3,789 ---------- 184,735 ---------- TOBACCO -- 2.0% Altria Group, Inc................................. 14,350 835,314 Philip Morris International, Inc.................. 5,977 525,438 Reynolds American, Inc............................ 6,394 295,083 ---------- 1,655,835 ---------- Total Consumer Staples............................ 9,202,128 ---------- INDUSTRIALS -- 10.7% AEROSPACE & DEFENSE -- 2.9% B/E Aerospace, Inc................................ 750 31,778 Boeing Co. (The).................................. 5,390 779,340 General Dynamics Corp............................. 750 103,020 Hexcel Corp....................................... 650 30,193 Honeywell International, Inc...................... 6,050 626,598 Huntington Ingalls Industries, Inc................ 400 50,740 Lockheed Martin Corp.............................. 1,500 325,725 Northrop Grumman Corp............................. 500 94,405 Precision Castparts Corp.......................... 250 58,003 Rockwell Collins, Inc............................. 1,000 92,300 Spirit AeroSystems Holdings, Inc. -- Class A/(a)/. 950 47,567 Textron, Inc...................................... 400 16,804 TransDigm Group, Inc./(a)/........................ 450 102,802 United Technologies Corp.......................... 650 62,445 ---------- 2,421,720 ---------- AIR FREIGHT & LOGISTICS -- 1.0% CH Robinson Worldwide, Inc........................ 1,100 68,222 Expeditors International of Washington, Inc....... 1,450 65,395 FedEx Corp........................................ 850 126,641 United Parcel Service, Inc. -- Class B............ 5,400 519,642 ---------- 779,900 ---------- AIRLINES -- 1.3% Alaska Air Group, Inc............................. 950 76,484 American Airlines Group, Inc...................... 5,304 224,624 Delta Air Lines, Inc.............................. 6,300 319,347 JetBlue Airways Corp./(a)/........................ 850 19,253 Southwest Airlines Co............................. 5,100 219,606 Spirit Airlines, Inc./(a)/........................ 500 19,925 United Continental Holdings, Inc./(a)/............ 2,927 167,717 ---------- 1,046,956 ---------- BUILDING PRODUCTS -- 0.3% Allegion PLC...................................... 750 49,440 AO Smith Corp..................................... 600 45,966 Armstrong World Industries, Inc./(a)/............. 100 4,573 Fortune Brands Home & Security, Inc............... 350 19,425 Lennox International, Inc......................... 350 43,715 Masco Corp........................................ 2,650 74,995 USG Corp./(a)/.................................... 650 15,789 ---------- 253,903 ---------- COMMERCIAL SERVICES & SUPPLIES -- 0.5% Cintas Corp....................................... 700 63,735 Clean Harbors, Inc./(a)/.......................... 300 12,495
COMPANY SHARES U.S. $ VALUE --------------------------------------------------------------- COMMERCIAL SERVICES & SUPPLIES (CONTINUED) Copart, Inc./(a)/.......................... 900 $ 34,209 Covanta Holding Corp....................... 800 12,392 KAR Auction Services, Inc.................. 350 12,960 Pitney Bowes, Inc.......................... 600 12,390 Rollins, Inc............................... 650 16,835 RR Donnelley & Sons Co..................... 800 11,776 Stericycle, Inc./(a)/...................... 700 84,420 Tyco International PLC/(a)/................ 2,800 89,292 Waste Management, Inc...................... 200 10,674 ---------- 361,178 ---------- CONSTRUCTION & ENGINEERING -- 0.0% AECOM/(a)/................................. 150 4,505 Quanta Services, Inc./(a)/................. 300 6,075 ---------- 10,580 ---------- ELECTRICAL EQUIPMENT -- 0.6% Acuity Brands, Inc......................... 350 81,830 AMETEK, Inc................................ 1,790 95,926 Babcock & Wilcox Enterprises, Inc./(a)/.... 50 1,044 BWX Technologies, Inc...................... 150 4,766 Emerson Electric Co........................ 3,550 169,796 Hubbell, Inc............................... 50 5,052 Regal Beloit Corp.......................... 50 2,926 Rockwell Automation, Inc................... 1,000 102,610 SolarCity Corp./(a)/....................... 450 22,959 ---------- 486,909 ---------- INDUSTRIAL CONGLOMERATES -- 1.1% 3M Co...................................... 4,958 746,873 Carlisle Cos., Inc......................... 100 8,869 Danaher Corp............................... 930 86,378 Roper Technologies, Inc.................... 350 66,427 ---------- 908,547 ---------- MACHINERY -- 1.2% Allison Transmission Holdings, Inc......... 700 18,123 Caterpillar, Inc........................... 750 50,970 Cummins, Inc............................... 1,000 88,010 Deere & Co................................. 400 30,508 Donaldson Co., Inc......................... 900 25,794 Flowserve Corp............................. 400 16,832 Graco, Inc................................. 450 32,431 IDEX Corp.................................. 500 38,305 Illinois Tool Works, Inc................... 2,350 217,798 Ingersoll-Rand PLC......................... 50 2,765 Lincoln Electric Holdings, Inc............. 450 23,351 Middleby Corp. (The)/(a)/.................. 400 43,148 Nordson Corp............................... 400 25,660 PACCAR, Inc................................ 2,400 113,760 Parker-Hannifin Corp....................... 500 48,490 Snap-on, Inc............................... 500 85,715 Stanley Black & Decker, Inc................ 100 10,673 Toro Co. (The)............................. 450 32,881 Valmont Industries, Inc.................... 50 5,301 WABCO Holdings, Inc./(a)/.................. 450 46,017 Wabtec Corp./DE............................ 700 49,784 ---------- 1,006,316 ---------- PROFESSIONAL SERVICES -- 0.5% Dun & Bradstreet Corp. (The)............... 100 10,393 Equifax, Inc............................... 900 100,233
FSA-23 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------------- PROFESSIONAL SERVICES (CONTINUED) IHS, Inc. -- Class A/(a)/.......................... 500 $ 59,215 Nielsen Holdings PLC............................... 1,953 91,010 Robert Half International, Inc..................... 1,000 47,140 Towers Watson & Co. -- Class A..................... 100 12,846 TransUnion/(a)/.................................... 160 4,411 Verisk Analytics, Inc. -- Class A/(a)/............. 1,307 100,482 ---------- 425,730 ---------- ROAD & RAIL -- 0.9% AMERCO............................................. 50 19,475 Avis Budget Group, Inc./(a)/....................... 750 27,217 CSX Corp........................................... 1,900 49,305 Genesee & Wyoming, Inc. -- Class A/(a)/............ 150 8,054 Hertz Global Holdings, Inc./(a)/................... 3,100 44,113 JB Hunt Transport Services, Inc.................... 650 47,684 Landstar System, Inc............................... 250 14,663 Old Dominion Freight Line, Inc./(a)/............... 450 26,581 Union Pacific Corp................................. 6,800 531,760 ---------- 768,852 ---------- TRADING COMPANIES & DISTRIBUTORS -- 0.4% Air Lease Corp..................................... 50 1,674 Fastenal Co........................................ 2,200 89,804 HD Supply Holdings, Inc./(a)/...................... 1,278 38,378 MSC Industrial Direct Co., Inc. -- Class A......... 100 5,627 United Rentals, Inc./(a)/.......................... 700 50,778 Watsco, Inc........................................ 200 23,426 WW Grainger, Inc................................... 550 111,425 ---------- 321,112 ---------- Total Industrials.................................. 8,791,703 ---------- FINANCIALS -- 5.5% BANKS -- 0.1% Signature Bank/New York NY/(a)/.................... 400 61,348 SVB Financial Group/(a)/........................... 250 29,725 ---------- 91,073 ---------- CAPITAL MARKETS -- 1.2% Affiliated Managers Group, Inc./(a)/............... 450 71,892 Ameriprise Financial, Inc.......................... 1,150 122,383 Artisan Partners Asset Management, Inc. -- Class A. 250 9,015 Bank of New York Mellon Corp. (The)................ 850 35,037 BlackRock, Inc. -- Class A......................... 360 122,587 Charles Schwab Corp. (The)......................... 6,250 205,812 Eaton Vance Corp................................... 850 27,565 Federated Investors, Inc. -- Class B............... 650 18,623 Interactive Brokers Group, Inc. -- Class A......... 50 2,180 Invesco Ltd........................................ 400 13,392 Lazard Ltd. -- Class A............................. 900 40,509 Legg Mason, Inc.................................... 150 5,885 LPL Financial Holdings, Inc........................ 544 23,202 NorthStar Asset Management Group, Inc./New York.... 1,497 18,174 SEI Investments Co................................. 1,000 52,400 T Rowe Price Group, Inc............................ 1,950 139,405 TD Ameritrade Holding Corp......................... 1,750 60,742 Waddell & Reed Financial, Inc. -- Class A.......... 550 15,763 ---------- 984,566 ---------- CONSUMER FINANCE -- 0.2% Ally Financial, Inc./(a)/.......................... 250 4,660 American Express Co................................ 1,287 89,511
COMPANY SHARES U.S. $ VALUE ----------------------------------------------------------------- CONSUMER FINANCE (CONTINUED) Credit Acceptance Corp./(a)/................. 100 $ 21,402 LendingClub Corp./(a)/....................... 508 5,613 Santander Consumer USA Holdings, Inc./(a)/... 7 111 SLM Corp./(a)/............................... 3,000 19,560 ---------- 140,857 ---------- DIVERSIFIED FINANCIAL SERVICES -- 0.9% Berkshire Hathaway, Inc. -- Class B/(a)/..... 900 118,836 CBOE Holdings, Inc........................... 660 42,834 FactSet Research Systems, Inc................ 360 58,525 Intercontinental Exchange, Inc............... 350 89,691 Leucadia National Corp....................... 250 4,348 McGraw Hill Financial, Inc................... 2,150 211,947 Moody's Corp................................. 1,350 135,459 MSCI, Inc. -- Class A........................ 800 57,704 ---------- 719,344 ---------- INSURANCE -- 0.5% AmTrust Financial Services, Inc.............. 50 3,079 Aon PLC...................................... 2,200 202,862 Arthur J Gallagher & Co...................... 650 26,611 Erie Indemnity Co. -- Class A................ 200 19,128 Markel Corp./(a)/............................ 58 51,234 Marsh & McLennan Cos., Inc................... 2,450 135,853 ---------- 438,767 ---------- REAL ESTATE INVESTMENT TRUSTS (REITS) -- 2.4% American Tower Corp.......................... 3,290 318,965 Boston Properties, Inc....................... 1,050 133,917 Columbia Property Trust, Inc................. 100 2,348 Crown Castle International Corp.............. 2,623 226,758 Digital Realty Trust, Inc.................... 550 41,591 Empire State Realty Trust, Inc. -- Class A... 400 7,228 Equinix, Inc................................. 494 149,386 Equity LifeStyle Properties, Inc............. 600 40,002 Extra Space Storage, Inc..................... 930 82,035 Federal Realty Investment Trust.............. 550 80,355 Four Corners Property Trust, Inc./(a)/....... 66 1,595 Gaming and Leisure Properties, Inc........... 50 1,390 Healthcare Trust of America, Inc. -- Class A. 100 2,697 Iron Mountain, Inc........................... 570 15,396 Lamar Advertising Co. -- Class A............. 550 32,989 Omega Healthcare Investors, Inc.............. 300 10,494 Plum Creek Timber Co., Inc................... 470 22,428 Post Properties, Inc......................... 50 2,958 Public Storage............................... 1,020 252,654 Simon Property Group, Inc.................... 2,389 464,517 Tanger Factory Outlet Centers, Inc........... 670 21,909 Taubman Centers, Inc......................... 200 15,344 Welltower, Inc............................... 1,200 81,636 Weyerhaeuser Co.............................. 250 7,495 ---------- 2,016,087 ---------- REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.2% CBRE Group, Inc. -- Class A/(a)/............. 2,120 73,310 Howard Hughes Corp. (The)/(a)/............... 150 16,974 Jones Lang LaSalle, Inc...................... 300 47,958 Realogy Holdings Corp./(a)/.................. 400 14,668 ---------- 152,910 ---------- Total Financials............................. 4,543,604 ----------
FSA-24 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONTINUED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------- MATERIALS -- 3.5% CHEMICALS -- 2.9% Air Products & Chemicals, Inc............ 1,350 $ 175,648 Airgas, Inc.............................. 100 13,832 Ashland, Inc............................. 50 5,135 Axalta Coating Systems Ltd./(a)/......... 687 18,309 Celanese Corp. -- Series A............... 100 6,733 CF Industries Holdings, Inc.............. 1,800 73,458 Chemours Co. (The)....................... 560 3,002 Dow Chemical Co. (The)................... 1,100 56,628 Eastman Chemical Co...................... 206 13,907 Ecolab, Inc.............................. 2,006 229,446 EI du Pont de Nemours & Co............... 3,250 216,450 FMC Corp................................. 750 29,347 Huntsman Corp............................ 950 10,802 International Flavors & Fragrances, Inc.. 650 77,766 LyondellBasell Industries NV -- Class A.. 2,950 256,355 Monsanto Co.............................. 3,623 356,938 NewMarket Corp........................... 100 38,073 Platform Specialty Products Corp./(a)/... 150 1,925 PPG Industries, Inc...................... 2,150 212,463 Praxair, Inc............................. 1,900 194,560 RPM International, Inc................... 950 41,857 Scotts Miracle-Gro Co. (The) -- Class A.. 300 19,353 Sherwin-Williams Co. (The)............... 700 181,720 Valspar Corp. (The)...................... 650 53,917 WR Grace & Co./(a)/...................... 600 59,754 ---------- 2,347,378 ---------- CONSTRUCTION MATERIALS -- 0.1% Eagle Materials, Inc..................... 300 18,129 Martin Marietta Materials, Inc........... 100 13,658 Vulcan Materials Co...................... 150 14,246 ---------- 46,033 ---------- CONTAINERS & PACKAGING -- 0.4% AptarGroup, Inc.......................... 100 7,265 Avery Dennison Corp...................... 600 37,596 Ball Corp................................ 1,050 76,366 Bemis Co., Inc........................... 50 2,235 Crown Holdings, Inc./(a)/................ 400 20,280 Graphic Packaging Holding Co............. 1,450 18,603 Owens-Illinois, Inc./(a)/................ 50 871 Packaging Corp. of America............... 700 44,135 Sealed Air Corp.......................... 1,600 71,360 Silgan Holdings, Inc..................... 300 16,116 WestRock Co.............................. 100 4,562 ---------- 299,389 ---------- METALS & MINING -- 0.0% Compass Minerals International, Inc...... 250 18,817 Royal Gold, Inc.......................... 50 1,824 Southern Copper Corp..................... 268 7,000 Steel Dynamics, Inc...................... 200 3,574 Tahoe Resources, Inc..................... 150 1,301 ---------- 32,516 ---------- PAPER & FOREST PRODUCTS -- 0.1% International Paper Co................... 3,050 114,985 ---------- Total Materials.......................... 2,840,301 ----------
COMPANY SHARES U.S. $ VALUE ---------------------------------------------------------------- TELECOMMUNICATION SERVICES -- 2.0% DIVERSIFIED TELECOMMUNICATION SERVICES -- 1.9% AT&T, Inc................................... 6,939 $ 238,771 Level 3 Communications, Inc./(a)/........... 177 9,622 Verizon Communications, Inc................. 29,300 1,354,246 Zayo Group Holdings, Inc./(a)/.............. 875 23,266 ----------- 1,625,905 ----------- WIRELESS TELECOMMUNICATION SERVICES -- 0.1% SBA Communications Corp. -- Class A/(a)/.... 450 47,282 ----------- Total Telecommunication Services............ 1,673,187 ----------- ENERGY -- 0.5% ENERGY EQUIPMENT & SERVICES -- 0.1% FMC Technologies, Inc./(a)/................. 1,100 31,911 Oceaneering International, Inc.............. 100 3,752 RPC, Inc.................................... 50 597 Schlumberger Ltd............................ 1,140 79,515 ----------- 115,775 ----------- OIL, GAS & CONSUMABLE FUELS -- 0.4% Cabot Oil & Gas Corp........................ 3,200 56,608 Continental Resources, Inc./OK/(a)/......... 200 4,596 CVR Energy, Inc............................. 50 1,967 EOG Resources, Inc.......................... 300 21,237 Fitbit, Inc./(a)/........................... 186 5,504 HollyFrontier Corp.......................... 200 7,978 Marathon Petroleum Corp..................... 300 15,552 Memorial Resource Development Corp./(a)/.... 638 10,304 ONEOK, Inc.................................. 650 16,029 Range Resources Corp........................ 50 1,231 Targa Resources Corp........................ 200 5,412 Teekay Corp................................. 100 987 Tesoro Corp................................. 50 5,268 Williams Cos., Inc. (The)................... 5,747 147,698 World Fuel Services Corp.................... 100 3,846 ----------- 304,217 ----------- Total Energy................................ 419,992 ----------- UTILITIES -- 0.0% ELECTRIC UTILITIES -- 0.0% ITC Holdings Corp........................... 350 13,737 ----------- INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS -- 0.0% Calpine Corp./(a)/.......................... 250 3,618 TerraForm Power, Inc. -- Class A/(a)/....... 50 629 ----------- 4,247 ----------- MULTI-UTILITIES -- 0.0% Dominion Resources, Inc./VA................. 150 10,146 ----------- Total Utilities............................. 28,130 ----------- TOTAL INVESTMENTS -- 99.5% (cost $51,075,617)......................... 82,017,887 Other assets less liabilities -- 0.5%....... 452,607 ----------- NET ASSETS -- 100.0% $82,470,494 ===========
FSA-25 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015 FUTURES CONTRACTS
NUMBER OF EXPIRATION ORIGINAL VALUE AT UNREALIZED TYPE CONTRACTS MONTH VALUE DECEMBER 31, 2015 (DEPRECIATION) ---- --------- ---------- -------- ----------------- -------------- PURCHASED CONTRACTS S&P 500 Index Mini.. 3 March 2016 $306,418 $305,310 $(1,108)
----------- (a)Non-income producing security. (b)Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts. Glossary: CBOE -- Chicago Board Options Exchange MSCI -- Morgan Stanley Capital International REIT -- Real Estate Investment Trust The accompanying notes are an integral part of these financial statements. FSA-26 SEPARATE ACCOUNT NO. 4 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 99.4% United States 0.4% Singapore 0.2% United Kingdom ---- 100.0% ====== ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of long-term investments and may vary over time. The accompanying notes are an integral part of these financial statements FSA-27 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2015 ASSETS: Investments (Notes 2 and 3): Common stocks -- at fair value (cost: $21,613,489)......... $22,192,841 Cash......................................................... 1,317,206 Interest and dividends receivable............................ 4,147 Fees receivable from contractowners.......................... 36,825 ----------- Total assets.............................................. 23,551,019 ----------- LIABILITIES: Payable for investments securities purchased................. 211,365 Due to AXA Equitable's General Account....................... 73,092 Accrued custody and bank fees................................ 3,375 Administrative fees payable.................................. 30 Asset management fee payable................................. 49,062 Accrued expenses............................................. 3,301 ----------- Total liabilities......................................... 340,225 ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION. $23,210,794 ===========
UNITS OUTSTANDING UNIT VALUES ----------------- ----------- Institutional. 14 $58,395.05 RIA........... 2,527 524.03 MRP........... 197,116 106.93
----------- The accompanying notes are an integral part of these financial statements. FSA-28 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2015 INVESTMENT INCOME (NOTE 2): Dividends.................................................. $ 110,545 ----------- Total investment income................................... 110,545 ----------- EXPENSES (NOTE 6): Investment management fees................................. (157,441) Custody and bank fees...................................... (2,893) Other operating expenses................................... (6,219) ----------- Total expenses............................................ (166,553) ----------- NET INVESTMENT INCOME (LOSS)................................. (56,008) ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTE 2): Net realized gain from investments......................... 1,846,639 Change in unrealized depreciation of investments........... (1,461,861) ----------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS.............. 384,778 ----------- NET INCREASE IN NET ASSETS ATTRIBUTABLE TO OPERATIONS........ $ 328,770 ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-29 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED DECEMBER 31, 2015 DECEMBER 31, 2014 ----------------- ----------------- INCREASE/(DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment loss............................................................... $ (56,008) $ (38,947) Net realized gain on investments.................................................. 1,846,639 3,423,597 Net change in unrealized depreciation of investments.............................. (1,461,861) (2,886,253) ----------- ----------- Net increase in net assets attributable to operations............................ 328,770 498,397 ----------- ----------- FROM CONTRACTOWNER TRANSACTIONS: Contributions..................................................................... 1,461,095 1,857,031 Withdrawals....................................................................... (4,299,910) (4,311,700) Asset management fees (Note 6).................................................... (84,564) (89,443) Administrative fees (Note 6)...................................................... (190,502) (228,309) ----------- ----------- Net decrease in net assets attributable to contractowner transactions............ (3,113,881) (2,772,421) ----------- ----------- DECREASE IN NET ASSETS.............................................................. (2,785,111) (2,274,024) NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- BEGINNING OF PERIOD. 25,995,905 28,269,929 ----------- ----------- NET ASSETS ATTRIBUTABLE TO CONTRACTOWNERS OR IN ACCUMULATION -- END OF PERIOD....... $23,210,794 $25,995,905 =========== ===========
----------- The accompanying notes are an integral part of these financial statements. FSA-30 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------------------ COMMON STOCKS -- 95.6% CONSUMER DISCRETIONARY -- 26.9% AUTO PARTS -- 0.9% Mobileye NV/(a)/.................................... 4,880 $ 206,326 ---------- CABLE TELEVISION SERVICES -- 1.8% AMC Networks, Inc. -- Class A/(a)/.................. 5,479 409,172 ---------- CONSUMER SERVICES: MISC. -- 1.0% Liberty Ventures -- Series A/(a)/................... 4,960 223,746 ---------- DIVERSIFIED MEDIA -- 0.6% Liberty Media Corp. -- Class C/(a)/................. 3,844 146,380 ---------- DIVERSIFIED RETAIL -- 4.8% Dollar General Corp................................. 5,740 412,534 Dollar Tree, Inc./(a)/.............................. 6,060 467,953 Liberty Interactive Corp. QVC Group -- Class A/(a)/. 8,660 236,591 ---------- 1,117,078 ---------- EDUCATION SERVICES -- 1.5% Bright Horizons Family Solutions, Inc............... 5,350 357,380 ---------- HOTEL/MOTEL -- 1.7% Wyndham Worldwide Corp.............................. 5,350 388,677 ---------- HOUSEHOLD FURNISHINGS -- 1.2% Tempur Sealy International, Inc./(a)/............... 3,960 279,022 ---------- LEISURE TIME -- 4.6% Expedia, Inc........................................ 4,106 510,342 Liberty TripAdvisor Holdings, Inc./(a)/............. 9,240 280,342 Norwegian Cruise Line Holdings Ltd./(a)/............ 4,950 290,070 ---------- 1,080,754 ---------- RADIO & TV BROADCASTERS -- 0.8% Pandora Media, Inc./(a)/............................ 13,730 184,119 ---------- RESTAURANTS -- 1.1% Buffalo Wild Wings, Inc./(a)/....................... 1,550 247,457 ---------- SPECIALTY RETAIL -- 6.9% O'Reilly Automotive, Inc./(a)/...................... 1,430 362,391 Ross Stores, Inc.................................... 8,100 435,861 Tractor Supply Co................................... 4,840 413,820 Ulta Salon Cosmetics & Fragrance, Inc./(a)/......... 2,180 403,300 ---------- 1,615,372 ---------- Total Consumer Discretionary........................ 6,255,483 ---------- TECHNOLOGY -- 16.4% COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 13.8% ANSYS, Inc./(a)/.................................... 3,489 322,733 Aspen Technology, Inc./(a)/......................... 5,596 211,305 F5 Networks, Inc./(a)/.............................. 1,900 184,224 Fortinet, Inc./(a)/................................. 7,810 243,438 Guidewire Software, Inc./(a)/....................... 4,840 291,174 NetSuite, Inc./(a)/................................. 2,360 199,703 Palo Alto Networks, Inc./(a)/....................... 1,730 304,722 ServiceNow, Inc./(a)/............................... 3,640 315,078 Tableau Software, Inc. -- Class A/(a)/.............. 3,150 296,793 Twitter, Inc./(a)/.................................. 13,530 313,084 Ultimate Software Group, Inc. (The)/(a)/............ 1,180 230,702 VeriFone Systems, Inc./(a)/......................... 10,430 292,249 ---------- 3,205,205 ----------
COMPANY SHARES U.S. $ VALUE --------------------------------------------------------------------- COMPUTER TECHNOLOGY -- 1.2% SanDisk Corp..................................... 3,570 $ 271,284 ---------- ELECTRONIC ENTERTAINMENT -- 1.4% Activision Blizzard, Inc......................... 8,459 327,448 ---------- Total Technology................................. 3,803,937 ---------- HEALTH CARE -- 15.9% BIOTECHNOLOGY -- 1.0% Medivation, Inc./(a)/............................ 4,620 223,331 ---------- HEALTH CARE SERVICES -- 3.7% Acadia Healthcare Co., Inc./(a)/................. 4,580 286,067 Premier, Inc. -- Class A/(a)/.................... 11,069 390,403 Team Health Holdings, Inc./(a)/.................. 4,090 179,510 ---------- 855,980 ---------- MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 3.8% Align Technology, Inc./(a)/...................... 7,315 481,693 Edwards Lifesciences Corp./(a)/.................. 5,200 410,696 ---------- 892,389 ---------- MEDICAL EQUIPMENT -- 3.9% DexCom, Inc./(a)/................................ 3,400 278,460 Intuitive Surgical, Inc./(a)/.................... 1,174 641,192 ---------- 919,652 ---------- PHARMACEUTICALS -- 3.5% Akorn, Inc....................................... 8,150 304,077 Diplomat Pharmacy, Inc./(a)/..................... 7,820 267,600 Jazz Pharmaceuticals PLC/(a)/.................... 1,650 231,924 ---------- 803,601 ---------- Total Health Care................................ 3,694,953 ---------- PRODUCER DURABLES -- 15.6 % AIR TRANSPORT -- 1.0% Spirit Airlines, Inc./(a)/....................... 5,570 221,965 ---------- BACK OFFICE SUPPORT, HR & CONSULTING -- 3.8% CoStar Group, Inc./(a)/.......................... 2,120 438,183 Robert Half International, Inc................... 9,630 453,958 ---------- 892,141 ---------- DIVERSIFIED MANUFACTURING OPERATIONS -- 1.5% Carlisle Cos., Inc............................... 3,930 348,552 ---------- MACHINERY: INDUSTRIAL -- 1.8% Middleby Corp. (The)/(a)/........................ 3,860 416,378 ---------- MACHINERY: TOOLS -- 1.6% Snap-on, Inc..................................... 2,212 379,203 ---------- RAILROAD EQUIPMENT -- 0.8% Wabtec Corp./DE.................................. 2,570 182,778 ---------- SCIENTIFIC INSTRUMENTS: CONTROL & FILTER -- 1.5% IDEX Corp........................................ 4,430 339,382 ---------- SCIENTIFIC INSTRUMENTS: ELECTRICAL -- 1.4% AMETEK, Inc...................................... 6,290 337,081 ---------- SHIPPING -- 1.0% Kirby Corp./(a)/................................. 4,470 235,212 ---------- TRUCKERS -- 1.2% Old Dominion Freight Line, Inc./(a)/............. 4,740 279,992 ---------- Total Producer Durables.......................... 3,632,684 ----------
FSA-31 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO OF INVESTMENTS (CONCLUDED) DECEMBER 31, 2015
COMPANY SHARES U.S. $ VALUE ------------------------------------------------------------ FINANCIAL SERVICES -- 12.9% ASSET MANAGEMENT & CUSTODIAN -- 2.7% Affiliated Managers Group, Inc./(a)/.... 2,165 $ 345,880 SEI Investments Co...................... 5,450 285,580 ----------- 631,460 ----------- BANKS: DIVERSIFIED -- 1.8% First Republic Bank/CA.................. 3,080 203,465 SVB Financial Group/(a)/................ 1,770 210,453 ----------- 413,918 ----------- DIVERSIFIED FINANCIAL SERVICES -- 1.4% Virtu Financial, Inc. -- Class A........ 14,415 326,356 ----------- FINANCIAL DATA & SYSTEMS -- 5.8% Alliance Data Systems Corp./(a)/........ 1,720 475,700 Moody's Corp............................ 4,730 474,608 Vantiv, Inc. -- Class A/(a)/............ 8,400 398,328 ----------- 1,348,636 ----------- SECURITIES BROKERAGE & SERVICES -- 1.2% Intercontinental Exchange, Inc.......... 1,076 275,736 ----------- Total Financial Services................ 2,996,106 ----------- CONSUMER STAPLES -- 3.0% BEVERAGE: SOFT DRINKS -- 2.4% Monster Beverage Corp./(a)/............. 3,800 566,048 ----------- FOODS -- 0.6% Mead Johnson Nutrition Co. -- Class A... 1,600 126,320 ----------- Total Consumer Staples.................. 692,368 ----------- MATERIALS & PROCESSING -- 2.2% CHEMICALS: DIVERSIFIED -- 0.9% PolyOne Corp............................ 6,730 213,745 ----------- DIVERSIFIED MATERIALS & PROCESSING -- 1.3% Hexcel Corp............................. 6,370 295,886 ----------- Total Materials & Processing............ 509,631 ----------- UTILITIES -- 1.6% UTILITIES: TELECOMMUNICATIONS -- 1.6% Level 3 Communications, Inc./(a)/....... 6,651 361,548 ----------- ENERGY -- 1.1% OIL WELL EQUIPMENT & SERVICES -- 1.1% Oceaneering International, Inc.......... 6,560 246,131 ----------- Total Common Stocks (cost $21,613,489)..................... 22,192,841 ----------- TOTAL INVESTMENTS -- 95.6% (cost/amortized cost $21,613,489)..... 22,192,841 Other assets less liabilities -- 4.4%... 1,017,953 ----------- NET ASSETS -- 100.0% $23,210,794 ===========
----------- (a)Non-income producing security. The accompanying notes are an integral part of these financial statements. FSA-32 SEPARATE ACCOUNT NO. 3 (POOLED) OF AXA EQUITABLE LIFE INSURANCE COMPANY PORTFOLIO SUMMARY DECEMBER 31, 2015 % OF TOTAL INVESTMENTS* COUNTRY DIVERSIFICATION ----------------------- ----------------------- 100.0 % United States ----------- * All data are as of December 31, 2015. The Fund's country breakdown is expressed as a percentage of each Portfolio's long-term investments and may vary over time. The accompanying notes are an integral part of these financial statements. FSA-33 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2015
ALL ASSET ALL ASSET ALL ASSET GROWTH- MODERATE GROWTH- AXA AGGRESSIVE AGGRESSIVE-ALT 25* ALT 20* ALT 15* ALLOCATION* ------------------ ----------------- ---------------- -------------- ASSETS: Investments in shares of the Portfolios, at fair value. $75,229 $74,722 $7,328 $2,569,826 Receivable for policy-related transactions............. 356 -- -- 1,290 ------- ------- ------ ---------- Total assets........................................ 75,585 74,722 7,328 2,571,116 ------- ------- ------ ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 355 -- -- 1,290 Payable for direct operating expenses.................. 5 13 -- 387 ------- ------- ------ ---------- Total liabilities................................... 360 13 -- 1,677 ------- ------- ------ ---------- NET ASSETS............................................. $75,225 $74,709 $7,328 $2,569,439 ======= ======= ====== ========== NET ASSETS: Accumulation unit values............................... $75,225 $74,709 $7,325 $2,569,303 Retained by AXA Equitable in Separate Account No. 66... -- -- 3 136 ------- ------- ------ ---------- TOTAL NET ASSETS....................................... $75,225 $74,709 $7,328 $2,569,439 ======= ======= ====== ========== Investments in shares of the Portfolios, at cost....... $78,487 $81,317 $7,808 $2,673,074 The Portfolios shares held Class B............................................. 6,776 4,179 701 250,815
AXA CONSERVATIVE AXA CONSERVATIVE- ALLOCATION* PLUS ALLOCATION* ---------------- ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,273,348 $1,076,876 Receivable for policy-related transactions............. 8,457 2,506 ---------- ---------- Total assets........................................ 1,281,805 1,079,382 ---------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 8,457 2,506 Payable for direct operating expenses.................. 220 166 ---------- ---------- Total liabilities................................... 8,677 2,672 ---------- ---------- NET ASSETS............................................. $1,273,128 $1,076,710 ========== ========== NET ASSETS: Accumulation unit values............................... $1,273,106 $1,076,534 Retained by AXA Equitable in Separate Account No. 66... 22 176 ---------- ---------- TOTAL NET ASSETS....................................... $1,273,128 $1,076,710 ========== ========== Investments in shares of the Portfolios, at cost....... $1,326,713 $1,148,167 The Portfolios shares held Class B............................................. 137,054 113,776
----------- 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-34 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
AXA GLOBAL EQUITY AXA INTERNATIONAL AXA INTERNATIONAL AXA LARGE CAP MANAGED CORE MANAGED VALUE MANAGED GROWTH MANAGED VOLATILITY* VOLATILITY* VOLATILITY* VOLATILITY* ----------------- ----------------- ----------------- -------------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,606,836 $1,856,005 $50,663 $3,328,685 Receivable for shares of the Portfolios sold........... 4,067 -- 42 10,734 Receivable for policy-related transactions............. -- 3,320 -- -- ---------- ---------- ------- ---------- Total assets........................................ 1,610,903 1,859,325 50,705 3,339,419 ---------- ---------- ------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 3,320 -- -- Payable for policy-related transactions................ 4,067 -- 40 9,575 Payable for direct operating expenses.................. 269 359 -- 564 ---------- ---------- ------- ---------- Total liabilities................................... 4,336 3,679 40 10,139 ---------- ---------- ------- ---------- NET ASSETS............................................. $1,606,567 $1,855,646 $50,665 $3,329,280 ========== ========== ======= ========== NET ASSETS: Accumulation unit values............................... $1,605,873 $1,855,333 $50,665 $3,325,450 Retained by AXA Equitable in Separate Account No. 66... 694 313 -- 3,830 ---------- ---------- ------- ---------- TOTAL NET ASSETS....................................... $1,606,567 $1,855,646 $50,665 $3,329,280 ========== ========== ======= ========== Investments in shares of the Portfolios, at cost....... $1,476,897 $1,865,001 $52,397 $2,565,602 The Portfolios shares held Class A............................................. -- -- -- -- Class B............................................. 111,124 203,403 4,401 124,248
AXA LARGE CAP VALUE MANAGED VOLATILITY* ------------- ASSETS: Investments in shares of the Portfolios, at fair value. $8,839,193 Receivable for shares of the Portfolios sold........... 82,293 Receivable for policy-related transactions............. -- ---------- Total assets........................................ 8,921,486 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- Payable for policy-related transactions................ 82,280 Payable for direct operating expenses.................. 1,357 ---------- Total liabilities................................... 83,637 ---------- NET ASSETS............................................. $8,837,849 ========== NET ASSETS: Accumulation unit values............................... $8,835,296 Retained by AXA Equitable in Separate Account No. 66... 2,553 ---------- TOTAL NET ASSETS....................................... $8,837,849 ========== Investments in shares of the Portfolios, at cost....... $6,348,563 The Portfolios shares held Class A............................................. 48,001 Class B............................................. 545,363
----------- 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-35 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
AXA MID CAP VALUE MANAGED AXA MODERATE AXA MODERATE-PLUS AXA/AB SMALL CAP VOLATILITY* ALLOCATION* ALLOCATION* GROWTH* ------------- ------------ ----------------- ---------------- ASSETS: Investments in shares of the Portfolios, at fair value. $7,702,296 $18,965,219 $1,553,724 $556,843 Receivable for shares of the Portfolios sold........... 88,242 -- -- -- Receivable for policy-related transactions............. -- 32,768 6,851 230 ---------- ----------- ---------- -------- Total assets........................................ 7,790,538 18,997,987 1,560,575 557,073 ---------- ----------- ---------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 32,730 6,851 230 Payable for policy-related transactions................ 88,233 -- -- -- Payable for direct operating expenses.................. 1,310 2,880 208 55 ---------- ----------- ---------- -------- Total liabilities................................... 89,543 35,610 7,059 285 ---------- ----------- ---------- -------- NET ASSETS............................................. $7,700,995 $18,962,377 $1,553,516 $556,788 ========== =========== ========== ======== NET ASSETS: Accumulation unit values............................... $7,699,781 $18,961,325 $1,553,409 $556,685 Retained by AXA Equitable in Separate Account No. 66... 1,214 1,052 107 103 ---------- ----------- ---------- -------- TOTAL NET ASSETS....................................... $7,700,995 $18,962,377 $1,553,516 $556,788 ========== =========== ========== ======== Investments in shares of the Portfolios, at cost....... $6,034,535 $19,615,673 $1,632,846 $648,606 The Portfolios shares held Class A............................................. -- -- -- 10,688 Class B............................................. 526,924 1,422,650 149,638 23,087
CHARTER/SM/ CHARTER/SM/ MULTI-SECTOR SMALL CAP BOND* VALUE* ------------ ---------- ASSETS: Investments in shares of the Portfolios, at fair value. $929,108 $59,405 Receivable for shares of the Portfolios sold........... -- 58 Receivable for policy-related transactions............. 6,526 -- -------- ------- Total assets........................................ 935,634 59,463 -------- ------- LIABILITIES: Payable for shares of the Portfolios purchased......... 6,526 -- Payable for policy-related transactions................ -- 55 Payable for direct operating expenses.................. 137 -- -------- ------- Total liabilities................................... 6,663 55 -------- ------- NET ASSETS............................................. $928,971 $59,408 ======== ======= NET ASSETS: Accumulation unit values............................... $928,933 $59,408 Retained by AXA Equitable in Separate Account No. 66... 38 -- -------- ------- TOTAL NET ASSETS....................................... $928,971 $59,408 ======== ======= Investments in shares of the Portfolios, at cost....... $975,505 $45,183 The Portfolios shares held Class A............................................. 11 -- Class B............................................. 248,062 4,488
----------- 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-36 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/BOSTON EQ/CALVERT EQ/CAPITAL EQ/BLACKROCK ADVISORS EQUITY SOCIALLY GUARDIAN EQ/EQUITY BASIC VALUE EQUITY* INCOME* RESPONSIBLE* RESEARCH* 500 INDEX* ------------------- --------------- ------------ ---------- ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $77,640 $333,411 $2,257,871 $7,183,769 $23,295,700 Receivable for shares of the Portfolios sold........... 73 -- 3,598 42,348 185,810 Receivable for policy-related transactions............. -- 543 -- -- -- ------- -------- ---------- ---------- ----------- Total assets........................................ 77,713 333,954 2,261,469 7,226,117 23,481,510 ------- -------- ---------- ---------- ----------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 543 -- -- -- Payable for policy-related transactions................ 73 -- 3,598 42,348 185,800 Payable for direct operating expenses.................. -- 44 386 1,158 3,645 ------- -------- ---------- ---------- ----------- Total liabilities................................... 73 587 3,984 43,506 189,445 ------- -------- ---------- ---------- ----------- NET ASSETS............................................. $77,640 $333,367 $2,257,485 $7,182,611 $23,292,065 ======= ======== ========== ========== =========== NET ASSETS: Accumulation unit values............................... $77,635 $333,353 $2,257,366 $7,181,136 $23,287,907 Retained by AXA Equitable in Separate Account No. 66... 5 14 119 1,475 4,158 ------- -------- ---------- ---------- ----------- TOTAL NET ASSETS....................................... $77,640 $333,367 $2,257,485 $7,182,611 $23,292,065 ======= ======== ========== ========== =========== Investments in shares of the Portfolios, at cost....... $67,437 $368,375 $1,988,852 $4,584,714 $16,752,943 The Portfolios shares held Class A............................................. -- -- -- -- 27,078 Class B............................................. 3,891 57,370 206,375 340,516 651,648
EQ/GAMCO MERGERS AND ACQUISITIONS* ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $129,020 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 80 -------- Total assets........................................ 129,100 -------- LIABILITIES: Payable for shares of the Portfolios purchased......... 80 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 18 -------- Total liabilities................................... 98 -------- NET ASSETS............................................. $129,002 ======== NET ASSETS: Accumulation unit values............................... $128,995 Retained by AXA Equitable in Separate Account No. 66... 7 -------- TOTAL NET ASSETS....................................... $129,002 ======== Investments in shares of the Portfolios, at cost....... $135,715 The Portfolios shares held Class A............................................. -- Class B............................................. 10,249
----------- 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-37 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/GAMCO SMALL EQ/INTERMEDIATE EQ/INTERNATIONAL EQ/JPMORGAN VALUE COMPANY VALUE* GOVERNMENT BOND* EQUITY INDEX* OPPORTUNITIES* -------------- ---------------- ---------------- ----------------- ASSETS: Investments in shares of the Portfolios, at fair value. $2,785,708 $3,935,795 $9,900,962 $152,642 Receivable for shares of the Portfolios sold........... -- -- 23,748 157 Receivable for policy-related transactions............. 8,155 7,399 -- -- ---------- ---------- ---------- -------- Total assets........................................ 2,793,863 3,943,194 9,924,710 152,799 ---------- ---------- ---------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... 8,155 7,310 -- -- Payable for policy-related transactions................ -- -- 23,749 157 Payable for direct operating expenses.................. 464 614 1,644 -- ---------- ---------- ---------- -------- Total liabilities................................... 8,619 7,924 25,393 157 ---------- ---------- ---------- -------- NET ASSETS............................................. $2,785,244 $3,935,270 $9,899,317 $152,642 ========== ========== ========== ======== NET ASSETS: Accumulation unit values............................... $2,785,019 $3,935,270 $9,898,935 $152,585 Retained by AXA Equitable in Separate Account No. 66... 225 -- 382 57 ---------- ---------- ---------- -------- TOTAL NET ASSETS....................................... $2,785,244 $3,935,270 $9,899,317 $152,642 ========== ========== ========== ======== Investments in shares of the Portfolios, at cost....... $2,784,200 $3,969,114 $9,627,105 $ 93,874 The Portfolios shares held Class A............................................. -- 1 1,176,505 -- Class B............................................. 56,458 385,200 -- 9,884
EQ/MFS EQ/LARGE CAP INTERNATIONAL GROWTH INDEX* GROWTH* ------------- ------------- ASSETS: Investments in shares of the Portfolios, at fair value. $523,030 $377,728 Receivable for shares of the Portfolios sold........... 1,620 -- Receivable for policy-related transactions............. -- 1,841 -------- -------- Total assets........................................ 524,650 379,569 -------- -------- LIABILITIES: Payable for shares of the Portfolios purchased......... -- 1,840 Payable for policy-related transactions................ 1,620 -- Payable for direct operating expenses.................. 53 60 -------- -------- Total liabilities................................... 1,673 1,900 -------- -------- NET ASSETS............................................. $522,977 $377,669 ======== ======== NET ASSETS: Accumulation unit values............................... $522,967 $377,669 Retained by AXA Equitable in Separate Account No. 66... 10 -- -------- -------- TOTAL NET ASSETS....................................... $522,977 $377,669 ======== ======== Investments in shares of the Portfolios, at cost....... $572,814 $412,604 The Portfolios shares held Class A............................................. -- -- Class B............................................. 45,486 57,823
----------- 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-38 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/MID CAP EQ/MONEY EQ/MORGAN STANLEY EQ/PIMCO ULTRA EQ/QUALITY INDEX* MARKET* MID CAP GROWTH* SHORT BOND* BOND PLUS* ---------- ----------- ----------------- -------------- ---------- ASSETS: Investments in shares of the Portfolios, at fair value. $649,150 $13,821,483 $133,090 $2,079,526 $7,069 Receivable for shares of the Portfolios sold........... -- 12,188 -- -- 8 Receivable for policy-related transactions............. 557 -- 180 8,201 -- -------- ----------- -------- ---------- ------ Total assets........................................ 649,707 13,833,671 133,270 2,087,727 7,077 -------- ----------- -------- ---------- ------ LIABILITIES: Payable for shares of the Portfolios purchased......... 557 -- 180 8,195 -- Payable for policy-related transactions................ -- 12,861 -- -- 8 Payable for direct operating expenses.................. 66 2,238 19 362 -- -------- ----------- -------- ---------- ------ Total liabilities................................... 623 15,099 199 8,557 8 -------- ----------- -------- ---------- ------ NET ASSETS............................................. $649,084 $13,818,572 $133,071 $2,079,170 $7,069 ======== =========== ======== ========== ====== NET ASSETS: Accumulation unit values............................... $647,989 $13,818,572 $133,071 $2,079,170 $7,022 Retained by AXA Equitable in Separate Account No. 66... 1,095 -- -- -- 47 -------- ----------- -------- ---------- ------ TOTAL NET ASSETS....................................... $649,084 $13,818,572 $133,071 $2,079,170 $7,069 ======== =========== ======== ========== ====== Investments in shares of the Portfolios, at cost....... $651,397 $13,821,732 $145,612 $2,110,918 $7,101 The Portfolios shares held Class A............................................. -- 539 -- -- 835 Class B............................................. 50,756 13,821,124 8,195 212,427 --
EQ/SMALL COMPANY INDEX* ---------------- ASSETS: Investments in shares of the Portfolios, at fair value. $4,399,826 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 2,008 ---------- Total assets........................................ 4,401,834 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 2,008 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 785 ---------- Total liabilities................................... 2,793 ---------- NET ASSETS............................................. $4,399,041 ========== NET ASSETS: Accumulation unit values............................... $4,398,651 Retained by AXA Equitable in Separate Account No. 66... 390 ---------- TOTAL NET ASSETS....................................... $4,399,041 ========== Investments in shares of the Portfolios, at cost....... $4,680,948 The Portfolios shares held Class A............................................. -- Class B............................................. 435,142
----------- 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-39 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015
EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER TARGET 2015 GROWTH STOCK* OMEGA GROWTH* CORE BOND* TECHNOLOGY* ALLOCATION* ---------------- -------------- ------------ ------------ ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $421,956 $456,276 $1,629,224 $4,564,723 $2,063,326 Receivable for shares of the Portfolios sold........... -- -- -- 5,861 -- Receivable for policy-related transactions............. 210 206 540 -- 250 -------- -------- ---------- ---------- ---------- Total assets........................................ 422,166 456,482 1,629,764 4,570,584 2,063,576 -------- -------- ---------- ---------- ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 210 206 540 -- 250 Payable for policy-related transactions................ -- -- -- 5,861 -- Payable for direct operating expenses.................. 53 34 177 685 371 -------- -------- ---------- ---------- ---------- Total liabilities................................... 263 240 717 6,546 621 -------- -------- ---------- ---------- ---------- NET ASSETS............................................. $421,903 $456,242 $1,629,047 $4,564,038 $2,062,955 ======== ======== ========== ========== ========== NET ASSETS: Accumulation unit values............................... $421,499 $456,188 $1,628,845 $4,563,064 $2,062,927 Retained by AXA Equitable in Separate Account No. 66... 404 54 202 974 28 -------- -------- ---------- ---------- ---------- TOTAL NET ASSETS....................................... $421,903 $456,242 $1,629,047 $4,564,038 $2,062,955 ======== ======== ========== ========== ========== Investments in shares of the Portfolios, at cost....... $420,096 $496,923 $1,665,020 $3,948,468 $2,300,551 The Portfolios shares held Class B............................................. 11,055 43,760 166,951 233,958 243,587
TARGET 2025 ALLOCATION* ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $2,578,717 Receivable for shares of the Portfolios sold........... -- Receivable for policy-related transactions............. 648 ---------- Total assets........................................ 2,579,365 ---------- LIABILITIES: Payable for shares of the Portfolios purchased......... 648 Payable for policy-related transactions................ -- Payable for direct operating expenses.................. 410 ---------- Total liabilities................................... 1,058 ---------- NET ASSETS............................................. $2,578,307 ========== NET ASSETS: Accumulation unit values............................... $2,578,127 Retained by AXA Equitable in Separate Account No. 66... 180 ---------- TOTAL NET ASSETS....................................... $2,578,307 ========== Investments in shares of the Portfolios, at cost....... $2,812,435 The Portfolios shares held Class B............................................. 273,840
----------- 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 NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED) DECEMBER 31, 2015
TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION* ALLOCATION* ALLOCATION* ----------- ----------- ----------- ASSETS: Investments in shares of the Portfolios, at fair value. $1,645,813 $1,333,295 $32,530 Receivable for shares of the Portfolios sold........... -- 26,497 -- Receivable for policy-related transactions............. 17,502 -- 140 ---------- ---------- ------- Total assets........................................ 1,663,315 1,359,792 32,670 ---------- ---------- ------- LIABILITIES: Payable for shares of the Portfolios purchased......... 17,502 -- 138 Payable for policy-related transactions................ -- 26,497 -- Payable for direct operating expenses.................. 241 190 3 ---------- ---------- ------- Total liabilities................................... 17,743 26,687 141 ---------- ---------- ------- NET ASSETS............................................. $1,645,572 $1,333,105 $32,529 ========== ========== ======= NET ASSETS: Accumulation unit values............................... $1,645,532 $1,333,056 $32,529 Retained by AXA Equitable in Separate Account No. 66... 40 49 -- ---------- ---------- ------- TOTAL NET ASSETS....................................... $1,645,572 $1,333,105 $32,529 ========== ========== ======= Investments in shares of the Portfolios, at cost....... $1,764,009 $1,422,066 $34,795 The Portfolios shares held Class B............................................. 172,219 141,592 3,521
----------- 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 NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED) DECEMBER 31, 2015 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)*** -------- --------------- ---------- ----------- ALL ASSET AGGRESSIVE-ALT 25................ 0.02% B $ 11.58 6 ALL ASSET GROWTH-ALT 20.................... 0.02% B $ 11.27 7 ALL ASSET MODERATE GROWTH-ALT 15........... 0.02% B $ 10.97 1 AXA AGGRESSIVE ALLOCATION.................. 0.02% B $ 11.91 216 AXA CONSERVATIVE ALLOCATION................ 0.02% B $ 12.12 105 AXA CONSERVATIVE-PLUS ALLOCATION........... 0.02% B $ 12.22 88 AXA GLOBAL EQUITY MANAGED VOLATILITY....... 0.00% B $510.99 -- AXA GLOBAL EQUITY MANAGED VOLATILITY....... 0.02% B $ 14.36 105 AXA INTERNATIONAL CORE MANAGED VOLATILITY.. 0.00% B $140.77 -- AXA INTERNATIONAL CORE MANAGED VOLATILITY.. 0.02% B $ 12.65 146 AXA INTERNATIONAL VALUE MANAGED VOLATILITY. 0.00% B $155.32 -- AXA LARGE CAP GROWTH MANAGED VOLATILITY.... 0.00% B $243.24 -- AXA LARGE CAP GROWTH MANAGED VOLATILITY.... 0.02% B $ 10.14 325 AXA LARGE CAP VALUE MANAGED VOLATILITY..... 0.00% A $185.40 4 AXA LARGE CAP VALUE MANAGED VOLATILITY..... 0.02% B $ 17.21 472 AXA MID CAP VALUE MANAGED VOLATILITY....... 0.00% B $296.77 -- AXA MID CAP VALUE MANAGED VOLATILITY....... 0.02% B $ 23.39 324 AXA MODERATE ALLOCATION.................... 0.02% B $ 11.98 1,583 AXA MODERATE-PLUS ALLOCATION............... 0.02% B $ 12.04 129 AXA/AB SMALL CAP GROWTH.................... 0.05% A $357.31 1 AXA/AB SMALL CAP GROWTH.................... 0.02% B $ 13.94 27 CHARTER/SM/ MULTI-SECTOR BOND.............. 0.05% A $223.13 -- CHARTER/SM/ MULTI-SECTOR BOND.............. 0.02% B $ 10.07 92 CHARTER/SM/ SMALL CAP VALUE................ 0.00% B $252.31 -- EQ/BLACKROCK BASIC VALUE EQUITY............ 0.00% B $332.63 -- EQ/BOSTON ADVISORS EQUITY INCOME........... 0.02% B $ 14.04 24 EQ/CALVERT SOCIALLY RESPONSIBLE............ 0.00% B $159.88 -- EQ/CALVERT SOCIALLY RESPONSIBLE............ 0.02% B $ 13.46 168 EQ/CAPITAL GUARDIAN RESEARCH............... 0.00% B $241.50 -- EQ/CAPITAL GUARDIAN RESEARCH............... 0.02% B $ 29.72 240 EQ/EQUITY 500 INDEX........................ 0.05% A $611.49 2 EQ/EQUITY 500 INDEX........................ 0.02% B $ 15.21 1,470 EQ/GAMCO MERGERS AND ACQUISITIONS.......... 0.02% B $ 11.73 11 EQ/GAMCO SMALL COMPANY VALUE............... 0.02% B $ 23.29 120 EQ/INTERMEDIATE GOVERNMENT BOND............ 0.05% A $229.02 -- EQ/INTERMEDIATE GOVERNMENT BOND............ 0.02% B $ 12.28 320
----------- The accompanying notes are an integral part of these financial statements. FSA-42 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED) DECEMBER 31, 2015
UNITS CONTRACT OUTSTANDING CHARGES* SHARE CLASS** UNIT VALUE (000'S)*** -------- --------------- ---------- ----------- EQ/INTERNATIONAL EQUITY INDEX.... 0.02% A $ 19.55 485 EQ/INTERNATIONAL EQUITY INDEX.... 0.05% A $173.74 2 EQ/JPMORGAN VALUE OPPORTUNITIES.. 0.00% B $234.67 1 EQ/LARGE CAP GROWTH INDEX........ 0.00% B $155.74 -- EQ/LARGE CAP GROWTH INDEX........ 0.02% B $ 15.15 34 EQ/MFS INTERNATIONAL GROWTH...... 0.02% B $ 11.25 34 EQ/MID CAP INDEX................. 0.00% B $211.01 -- EQ/MID CAP INDEX................. 0.02% B $ 14.40 39 EQ/MONEY MARKET.................. 0.05% A $174.88 -- EQ/MONEY MARKET.................. 0.02% B $ 9.99 1,383 EQ/MORGAN STANLEY MID CAP GROWTH. 0.02% B $ 13.16 10 EQ/PIMCO ULTRA SHORT BOND........ 0.02% B $ 11.77 177 EQ/QUALITY BOND PLUS............. 0.05% A $247.26 -- EQ/SMALL COMPANY INDEX........... 0.02% B $ 23.87 184 EQ/T. ROWE PRICE GROWTH STOCK.... 0.00% B $ 18.56 -- EQ/T. ROWE PRICE GROWTH STOCK.... 0.02% B $ 16.11 26 EQ/WELLS FARGO OMEGA GROWTH...... 0.00% B $210.69 1 EQ/WELLS FARGO OMEGA GROWTH...... 0.02% B $ 14.39 15 MULTIMANAGER CORE BOND........... 0.02% B $ 10.16 160 MULTIMANAGER TECHNOLOGY.......... 0.00% B $269.46 -- MULTIMANAGER TECHNOLOGY.......... 0.02% B $ 25.55 179 TARGET 2015 ALLOCATION........... 0.02% B $ 11.54 179 TARGET 2025 ALLOCATION........... 0.02% B $ 11.82 218 TARGET 2035 ALLOCATION........... 0.02% B $ 11.95 138 TARGET 2045 ALLOCATION........... 0.02% B $ 11.87 112 TARGET 2055 ALLOCATION........... 0.02% B $ 9.22 4
----------- The accompanying notes are an integral part of these financial statements. * Contract charges reflect the annual program expense, 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-43 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2015
ALL ASSET ALL ASSET ALL ASSET GROWTH- MODERATE GROWTH- AGGRESSIVE-ALT 25* ALT 20* ALT 15* ------------------ ----------------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 577 $ 629 $ 63 Expenses: Asset-based charges and direct operating expenses.................. 8 24 -- ------- ------- ----- NET INVESTMENT INCOME (LOSS).......................................... 569 605 63 ------- ------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 230 (2,592) 11 Net realized gain (loss) distribution from the Portfolios.......... 708 2,621 70 ------- ------- ----- Net realized gain (loss) on investments............................. 938 29 81 ------- ------- ----- Net change in unrealized appreciation (depreciation) of investments. (3,209) (4,310) (428) ------- ------- ----- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (2,271) (4,281) (347) ------- ------- ----- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(1,702) $(3,676) $(284) ======= ======= =====
AXA AGGRESSIVE AXA CONSERVATIVE AXA CONSERVATIVE- ALLOCATION* ALLOCATION* PLUS ALLOCATION* -------------- ---------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 25,339 $ 10,554 $ 9,181 Expenses: Asset-based charges and direct operating expenses.................. 603 320 243 --------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 24,736 10,234 8,938 --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 29,789 (3,286) 1,735 Net realized gain (loss) distribution from the Portfolios.......... 158,974 23,727 37,567 --------- -------- -------- Net realized gain (loss) on investments............................. 188,763 20,441 39,302 --------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (252,841) (35,207) (57,421) --------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (64,078) (14,766) (18,119) --------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (39,342) $ (4,532) $ (9,181) ========= ======== ========
----------- 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 NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
AXA GLOBAL EQUITY AXA INTERNATIONAL AXA INTERNATIONAL MANAGED CORE MANAGED VALUE MANAGED VOLATILITY* VOLATILITY* VOLATILITY* ----------------- ----------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 15,283 $ 1,189 $ 54 Expenses: Asset-based charges and direct operating expenses.................. 391 494 -- --------- --------- ------- NET INVESTMENT INCOME (LOSS).......................................... 14,892 695 54 --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 88,799 23,376 426 Net realized gain (loss) distribution from the Portfolios.......... -- -- -- --------- --------- ------- Net realized gain (loss) on investments............................. 88,799 23,376 426 --------- --------- ------- Net change in unrealized appreciation (depreciation) of investments. (129,412) (105,206) (2,105) --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (40,613) (81,830) (1,679) --------- --------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (25,721) $ (81,135) $(1,625) ========= ========= =======
AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP CORE MANAGED GROWTH MANAGED VALUE MANAGED VOLATILITY* VOLATILITY* VOLATILITY* ------------- -------------- ------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ -- $ 9,788 $ 150,502 Expenses: Asset-based charges and direct operating expenses.................. -- 838 2,053 -------- --------- ----------- NET INVESTMENT INCOME (LOSS).......................................... -- 8,950 148,449 -------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 32,112 439,407 623,462 Net realized gain (loss) distribution from the Portfolios.......... -- 149,374 -- -------- --------- ----------- Net realized gain (loss) on investments............................. 32,112 588,781 623,462 -------- --------- ----------- Net change in unrealized appreciation (depreciation) of investments. (30,624) (447,410) (1,154,100) -------- --------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 1,488 141,371 (530,638) -------- --------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 1,488 $ 150,321 $ (382,189) ======== ========= ===========
----------- 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 NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
AXA MID CAP VALUE MANAGED AXA MODERATE AXA MODERATE- VOLATILITY* ALLOCATION* PLUS ALLOCATION* ----------------- ------------ ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 63,253 $ 161,412 $ 14,373 Expenses: Asset-based charges and direct operating expenses.................. 1,986 4,487 329 --------- ----------- --------- NET INVESTMENT INCOME (LOSS).......................................... 61,267 156,925 14,044 --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 411,919 178,363 7,025 Net realized gain (loss) distribution from the Portfolios.......... -- 693,865 68,880 --------- ----------- --------- Net realized gain (loss) on investments............................. 411,919 872,228 75,905 --------- ----------- --------- Net change in unrealized appreciation (depreciation) of investments. (747,242) (1,196,178) (112,842) --------- ----------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (335,323) (323,950) (36,937) --------- ----------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(274,056) $ (167,025) $ (22,893) ========= =========== =========
AXA/AB SMALL CHARTER/SM/ MULTI- CHARTER/SM/ SMALL CAP GROWTH* SECTOR BOND* CAP VALUE* ------------ ---------------- --------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 277 $ 14,798 $ 350 Expenses: Asset-based charges and direct operating expenses.................. 223 198 -- -------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 54 14,600 350 -------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 7,638 (5,202) 18,978 Net realized gain (loss) distribution from the Portfolios.......... 66,006 -- -- -------- -------- -------- Net realized gain (loss) on investments............................. 73,644 (5,202) 18,978 -------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (88,857) (16,249) (28,140) -------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (15,213) (21,451) (9,162) -------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(15,159) $ (6,851) $ (8,812) ======== ======== ========
----------- 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-46 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/BLACKROCK EQ/BOSTON EQ/CALVERT EQ/CAPITAL BASIC VALUE ADVISORS EQUITY SOCIALLY GUARDIAN EQUITY* INCOME* RESPONSIBLE* RESEARCH* ------------ --------------- ------------ ---------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 1,086 $ 5,380 $ 23,760 $ 43,510 Expenses: Asset-based charges and direct operating expenses.................. -- 72 563 1,782 -------- -------- --------- --------- NET INVESTMENT INCOME (LOSS).......................................... 1,086 5,308 23,197 41,728 -------- -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 5,024 (13,640) 316,318 559,201 Net realized gain (loss) distribution from the Portfolios.......... -- 28,867 245,584 -- -------- -------- --------- --------- Net realized gain (loss) on investments............................. 5,024 15,227 561,902 559,201 -------- -------- --------- --------- Net change in unrealized appreciation (depreciation) of investments. (10,722) (24,471) (571,837) (433,987) -------- -------- --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (5,698) (9,244) (9,935) 125,214 -------- -------- --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (4,612) $ (3,936) $ 13,262 $ 166,942 ======== ======== ========= =========
EQ/EQUITY 500 EQ/GAMCO MERGERS INDEX* AND ACQUISITIONS* ------------- ----------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 384,047 $ -- Expenses: Asset-based charges and direct operating expenses.................. 6,113 29 ----------- ------- NET INVESTMENT INCOME (LOSS).......................................... 377,934 (29) ----------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 1,816,257 (16) Net realized gain (loss) distribution from the Portfolios.......... 428,857 5,903 ----------- ------- Net realized gain (loss) on investments............................. 2,245,114 5,887 ----------- ------- Net change in unrealized appreciation (depreciation) of investments. (2,436,673) (2,689) ----------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (191,559) 3,198 ----------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 186,375 $ 3,169 =========== =======
----------- 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-47 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/GAMCO SMALL EQ/INTERMEDIATE EQ/INTERNATIONAL COMPANY VALUE* GOVERNMENT BOND* EQUITY INDEX* -------------- ---------------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 15,397 $ 23,957 $ 249,089 Expenses: Asset-based charges and direct operating expenses.................. 673 904 2,654 --------- -------- --------- NET INVESTMENT INCOME (LOSS).......................................... 14,724 23,053 246,435 --------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 141,034 16,165 (438,828) Net realized gain (loss) distribution from the Portfolios.......... 148,606 4,470 -- --------- -------- --------- Net realized gain (loss) on investments............................. 289,640 20,635 (438,828) --------- -------- --------- Net change in unrealized appreciation (depreciation) of investments. (470,211) (30,649) 6,747 --------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (180,571) (10,014) (432,081) --------- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(165,847) $ 13,039 $(185,646) ========= ======== =========
EQ/MFS EQ/JPMORGAN VALUE EQ/LARGE CAP INTERNATIONAL OPPORTUNITIES* GROWTH INDEX* GROWTH* ----------------- ------------- ------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 1,076 $ 5,009 $ 2,412 Expenses: Asset-based charges and direct operating expenses.................. -- 100 103 ------- -------- ------- NET INVESTMENT INCOME (LOSS).......................................... 1,076 4,909 2,309 ------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 875 (3,069) (4,936) Net realized gain (loss) distribution from the Portfolios.......... -- 50,318 5,640 ------- -------- ------- Net realized gain (loss) on investments............................. 875 47,249 704 ------- -------- ------- Net change in unrealized appreciation (depreciation) of investments. (2,816) (40,710) (81) ------- -------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (1,941) 6,539 623 ------- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (865) $ 11,448 $ 2,932 ======= ======== =======
----------- 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-48 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/MID CAP EQ/MONEY EQ/MORGAN STANLEY EQ/PIMCO ULTRA INDEX* MARKET* MID CAP GROWTH* SHORT BOND* ---------- -------- ----------------- -------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 5,862 $ -- $ -- $ 10,039 Expenses: Asset-based charges and direct operating expenses.................. 118 3,383 34 507 -------- ------- -------- -------- NET INVESTMENT INCOME (LOSS).......................................... 5,744 (3,383) (34) 9,532 -------- ------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 16,504 (30) (14,107) (10,336) Net realized gain (loss) distribution from the Portfolios.......... -- 75 3,257 -- -------- ------- -------- -------- Net realized gain (loss) on investments............................. 16,504 45 (10,850) (10,336) -------- ------- -------- -------- Net change in unrealized appreciation (depreciation) of investments. (38,272) (230) 603 (5,432) -------- ------- -------- -------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (21,768) (185) (10,247) (15,768) -------- ------- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $(16,024) $(3,568) $(10,281) $ (6,236) ======== ======= ======== ========
EQ/QUALITY EQ/SMALL COMPANY BOND PLUS* INDEX* ---------- ---------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 78 $ 42,367 Expenses: Asset-based charges and direct operating expenses.................. 4 1,172 ---- --------- NET INVESTMENT INCOME (LOSS).......................................... 74 41,195 ---- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 12 237,733 Net realized gain (loss) distribution from the Portfolios.......... -- 369,294 ---- --------- Net realized gain (loss) on investments............................. 12 607,027 ---- --------- Net change in unrealized appreciation (depreciation) of investments. (67) (842,157) ---- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (55) (235,130) ---- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 19 $(193,935) ==== =========
----------- 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-49 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2015
EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER GROWTH STOCK* OMEGA GROWTH* CORE BOND* TECHNOLOGY* ---------------- -------------- ------------ ------------ INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ -- $ -- $ 26,678 $ -- Expenses: Asset-based charges and direct operating expenses.................. 97 59 302 1,081 -------- -------- -------- --------- NET INVESTMENT INCOME (LOSS).......................................... (97) (59) 26,376 (1,081) -------- -------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 45,742 (6,596) (13,766) 362,010 Net realized gain (loss) distribution from the Portfolios.......... 16,778 33,792 -- 329,572 -------- -------- -------- --------- Net realized gain (loss) on investments............................. 62,520 27,196 (13,766) 691,582 -------- -------- -------- --------- Net change in unrealized appreciation (depreciation) of investments. (26,733) (21,311) (14,469) (396,663) -------- -------- -------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ 35,787 5,885 (28,235) 294,919 -------- -------- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 35,690 $ 5,826 $ (1,859) $ 293,838 ======== ======== ======== =========
TARGET 2015 TARGET 2025 ALLOCATION* ALLOCATION* ----------- ----------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 25,158 $ 33,040 Expenses: Asset-based charges and direct operating expenses.................. 573 603 --------- --------- NET INVESTMENT INCOME (LOSS).......................................... 24,585 32,437 --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 2,321 42,661 Net realized gain (loss) distribution from the Portfolios.......... 32,040 34,245 --------- --------- Net realized gain (loss) on investments............................. 34,361 76,906 --------- --------- Net change in unrealized appreciation (depreciation) of investments. (101,199) (163,640) --------- --------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (66,838) (86,734) --------- --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (42,253) $ (54,297) ========= =========
----------- 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-50 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF OPERATIONS (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2015
TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION* ALLOCATION* ALLOCATION*(A) ----------- ----------- -------------- INCOME AND EXPENSES: Investment Income: Dividends from the Portfolios...................................... $ 21,230 $ 17,938 $ 460 Expenses: Asset-based charges and direct operating expenses.................. 386 307 3 --------- --------- ------- NET INVESTMENT INCOME (LOSS).......................................... 20,844 17,631 457 --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments............................ 65,255 44,187 (8) Net realized gain (loss) distribution from the Portfolios.......... 24,937 21,887 33 --------- --------- ------- Net realized gain (loss) on investments............................. 90,192 66,074 25 --------- --------- ------- Net change in unrealized appreciation (depreciation) of investments. (140,669) (111,882) (2,265) --------- --------- ------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS................ (50,477) (45,808) (2,240) --------- --------- ------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ (29,633) $ (28,177) $(1,783) ========= ========= =======
----------- 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. (a)Units were made available on May 26, 2015. FSA-51 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
ALL ASSET ALL ASSET AGGRESSIVE-ALT 25* GROWTH-ALT 20* ---------------- ----------------- 2015 2014 2015 2014 ------- ------- -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 569 $ 280 $ 605 $ 1,385 Net realized gain (loss) on investments.................................................. 938 556 29 665 Net change in unrealized appreciation (depreciation) of investments...................... (3,209) (566) (4,310) (2,271) ------- ------- -------- ------- Net increase (decrease) in net assets resulting from operations.......................... (1,702) 270 (3,676) (221) ------- ------- -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 27,566 12,595 21,783 23,598 Transfers between Variable Investment Options including guaranteed interest account, net. 28,249 3,356 1,381 73,275 Redemptions for contract benefits and terminations....................................... (893) (2,609) (38,178) (3,385) Contract maintenance charges............................................................. (314) (211) (772) (320) ------- ------- -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 54,608 13,131 (15,786) 93,168 ------- ------- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 52,906 13,401 (19,462) 92,947 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 22,319 8,918 94,171 1,224 ------- ------- -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $75,225 $22,319 $ 74,709 $94,171 ======= ======= ======== =======
ALL ASSET MODERATE GROWTH-ALT 15* ----------------- 2015 2014 ------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 63 $ 71 Net realized gain (loss) on investments.................................................. 81 467 Net change in unrealized appreciation (depreciation) of investments...................... (428) (66) ------- -------- Net increase (decrease) in net assets resulting from operations.......................... (284) 472 ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 4,325 3,262 Transfers between Variable Investment Options including guaranteed interest account, net. -- 25,632 Redemptions for contract benefits and terminations....................................... (1,092) (26,416) Contract maintenance charges............................................................. (62) (131) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 3,171 2,347 ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 2,887 2,819 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 4,441 1,622 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,328 $ 4,441 ======= ========
----------- 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-52 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA AGGRESSIVE ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 24,736 $ 39,076 Net realized gain (loss) on investments.................................................. 188,763 280,545 Net change in unrealized appreciation (depreciation) of investments...................... (252,841) (204,203) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (39,342) 115,418 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 345,553 368,513 Transfers between Variable Investment Options including guaranteed interest account, net. (138,794) 542 Redemptions for contract benefits and terminations....................................... (112,064) (283,457) Contract maintenance charges............................................................. (20,723) (21,630) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 73,972 63,968 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 34,630 179,386 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,534,809 2,355,423 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,569,439 $2,534,809 ========== ==========
AXA CONSERVATIVE ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 10,234 $ 10,902 Net realized gain (loss) on investments.................................................. 20,441 55,372 Net change in unrealized appreciation (depreciation) of investments...................... (35,207) (28,387) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (4,532) 37,887 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 175,891 203,614 Transfers between Variable Investment Options including guaranteed interest account, net. (123,758) (20,101) Redemptions for contract benefits and terminations....................................... (67,950) (446,274) Contract maintenance charges............................................................. (13,259) (14,860) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (29,076) (277,621) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (33,608) (239,734) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,306,736 1,546,470 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,273,128 $1,306,736 ========== ==========
AXA CONSERVATIVE-PLUS ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 8,938 $ 9,756 Net realized gain (loss) on investments.................................................. 39,302 74,613 Net change in unrealized appreciation (depreciation) of investments...................... (57,421) (55,412) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (9,181) 28,957 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 155,838 348,998 Transfers between Variable Investment Options including guaranteed interest account, net. 13,131 (258,921) Redemptions for contract benefits and terminations....................................... (70,271) (347,235) Contract maintenance charges............................................................. (10,907) (12,113) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 87,791 (269,271) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 78,610 (240,314) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 998,100 1,238,414 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,076,710 $ 998,100 ========== ==========
----------- 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-53 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA GLOBAL EQUITY MANAGED VOLATILITY* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,892 $ 18,611 Net realized gain (loss) on investments.................................................. 88,799 138,800 Net change in unrealized appreciation (depreciation) of investments...................... (129,412) (118,223) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (25,721) 39,188 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 170,698 218,865 Transfers between Variable Investment Options including guaranteed interest account, net. (129,733) (86,882) Redemptions for contract benefits and terminations....................................... (237,741) (434,573) Contract maintenance charges............................................................. (15,211) (18,622) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (211,987) (321,212) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (237,708) (282,024) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,844,275 2,126,299 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,606,567 $1,844,275 ========== ==========
AXA INTERNATIONAL CORE MANAGED VOLATILITY* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 695 $ 33,560 Net realized gain (loss) on investments.................................................. 23,376 79,394 Net change in unrealized appreciation (depreciation) of investments...................... (105,206) (273,537) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (81,135) (160,583) ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 174,039 256,735 Transfers between Variable Investment Options including guaranteed interest account, net. (219,840) (226,664) Redemptions for contract benefits and terminations....................................... (399,041) (485,947) Contract maintenance charges............................................................. (16,800) (24,023) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (461,642) (479,899) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (542,777) (640,482) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,398,423 3,038,905 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,855,646 $2,398,423 ========== ==========
AXA INTERNATIONAL VALUE MANAGED VOLATILITY* ----------------- 2015 2014 ------- -------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 54 $ 919 Net realized gain (loss) on investments.................................................. 426 19,670 Net change in unrealized appreciation (depreciation) of investments...................... (2,105) (22,736) ------- -------- Net increase (decrease) in net assets resulting from operations.......................... (1,625) (2,147) ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 2,399 2,492 Transfers between Variable Investment Options including guaranteed interest account, net. (673) -- Redemptions for contract benefits and terminations....................................... (1,149) (87,082) Contract maintenance charges............................................................. (523) (765) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 54 (85,355) ------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (23) 21 ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,594) (87,481) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 52,259 139,740 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $50,665 $ 52,259 ======= ========
----------- 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-54 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA LARGE CAP CORE MANAGED VOLATILITY*(C) ----------------- 2015 2014 -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ -- $ 803 Net realized gain (loss) on investments.................................................. 32,112 3,955 Net change in unrealized appreciation (depreciation) of investments...................... (30,624) 4,567 -------- ------- Net increase (decrease) in net assets resulting from operations.......................... 1,488 9,325 -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,919 -- Transfers between Variable Investment Options including guaranteed interest account, net. (92,053) -- Redemptions for contract benefits and terminations....................................... -- -- Contract maintenance charges............................................................. (507) (939) -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (90,641) (939) -------- ------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (1) -- -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (89,154) 8,386 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 89,154 80,768 -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ -- $89,154 ======== =======
AXA LARGE CAP GROWTH MANAGED VOLATILITY*(A) ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 8,950 $ 6,345 Net realized gain (loss) on investments.................................................. 588,781 498,563 Net change in unrealized appreciation (depreciation) of investments...................... (447,410) (104,554) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 150,321 400,354 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 231,156 376,432 Transfers between Variable Investment Options including guaranteed interest account, net. (266,671) (117,013) Redemptions for contract benefits and terminations....................................... (621,153) (800,384) Contract maintenance charges............................................................. (27,950) (32,395) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (684,618) (573,360) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (143) -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (534,440) (173,006) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,863,720 4,036,726 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $3,329,280 $3,863,720 ========== ==========
AXA LARGE CAP VALUE MANAGED VOLATILITY* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 148,449 $ 132,467 Net realized gain (loss) on investments.................................................. 623,462 362,737 Net change in unrealized appreciation (depreciation) of investments...................... (1,154,100) 671,363 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (382,189) 1,166,567 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 576,243 730,601 Transfers between Variable Investment Options including guaranteed interest account, net. (526,514) (136,113) Redemptions for contract benefits and terminations....................................... (972,935) (1,708,891) Contract maintenance charges............................................................. (72,369) (84,858) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (995,575) (1,199,261) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,377,764) (32,694) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 10,215,613 10,248,307 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 8,837,849 $10,215,613 =========== ===========
----------- 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)AXA Large Cap Growth Managed Volatility replaced EQ/Equity Growth PLUS due to a fund merger on June 20, 2014. (c)AXA Large Cap Core Managed Volatility had no units at December 31, 2015, thus is not included in the Statement of Assets and Liabilities. FSA-55 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA MID CAP VALUE MANAGED VOLATILITY* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 61,267 $ 50,532 Net realized gain (loss) on investments.................................................. 411,919 307,578 Net change in unrealized appreciation (depreciation) of investments...................... (747,242) 580,746 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (274,056) 938,856 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 443,981 620,004 Transfers between Variable Investment Options including guaranteed interest account, net. (265,300) (140,330) Redemptions for contract benefits and terminations....................................... (1,295,296) (1,052,417) Contract maintenance charges............................................................. (67,440) (79,343) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (1,184,055) (652,086) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (1,458,111) 286,770 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 9,159,106 8,872,336 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,700,995 $ 9,159,106 =========== ===========
AXA MODERATE ALLOCATION* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 156,925 $ 199,609 Net realized gain (loss) on investments.................................................. 872,228 1,115,416 Net change in unrealized appreciation (depreciation) of investments...................... (1,196,178) (764,280) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (167,025) 550,745 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 4,473,215 4,045,268 Transfers between Variable Investment Options including guaranteed interest account, net. (737,608) (413,412) Redemptions for contract benefits and terminations....................................... (2,926,052) (2,887,845) Contract maintenance charges............................................................. (196,864) (217,500) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 612,691 526,511 ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 445,666 1,077,256 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 18,516,711 17,439,455 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $18,962,377 $18,516,711 =========== ===========
AXA MODERATE-PLUS ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,044 $ 16,205 Net realized gain (loss) on investments.................................................. 75,905 97,328 Net change in unrealized appreciation (depreciation) of investments...................... (112,842) (71,978) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (22,893) 41,555 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 354,437 306,057 Transfers between Variable Investment Options including guaranteed interest account, net. 49,640 28,696 Redemptions for contract benefits and terminations....................................... (70,885) (139,588) Contract maintenance charges............................................................. (12,374) (11,052) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 320,818 184,113 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- (3) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 297,925 225,665 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,255,591 1,029,926 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,553,516 $1,255,591 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
AXA/AB SMALL CAP GROWTH* -------------------- 2015 2014 --------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 54 $ 154 Net realized gain (loss) on investments.................................................. 73,644 149,614 Net change in unrealized appreciation (depreciation) of investments...................... (88,857) (128,566) --------- --------- Net increase (decrease) in net assets resulting from operations.......................... (15,159) 21,202 --------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 117,950 87,099 Transfers between Variable Investment Options including guaranteed interest account, net. (5,020) 142,374 Redemptions for contract benefits and terminations....................................... (189,664) (174,302) Contract maintenance charges............................................................. (6,025) (6,595) --------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (82,759) 48,576 --------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 6 --------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (97,918) 69,784 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 654,706 584,922 --------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 556,788 $ 654,706 ========= =========
CHARTER/SM/ MULTI-SECTOR BOND* ------------------- 2015 2014 -------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,600 $ 20,815 Net realized gain (loss) on investments.................................................. (5,202) (8,116) Net change in unrealized appreciation (depreciation) of investments...................... (16,249) 7,517 -------- --------- Net increase (decrease) in net assets resulting from operations.......................... (6,851) 20,216 -------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 143,832 138,755 Transfers between Variable Investment Options including guaranteed interest account, net. 76,316 4,355 Redemptions for contract benefits and terminations....................................... (93,231) (170,729) Contract maintenance charges............................................................. (7,094) (7,812) -------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 119,823 (35,431) -------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 112,972 (15,215) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 815,999 831,214 -------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $928,971 $ 815,999 ======== =========
CHARTER/SM/ SMALL CAP VALUE* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 350 $ 207 Net realized gain (loss) on investments.................................................. 18,978 29,809 Net change in unrealized appreciation (depreciation) of investments...................... (28,140) (37,054) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (8,812) (7,038) -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,610 1,178 Transfers between Variable Investment Options including guaranteed interest account, net. (46,902) -- Redemptions for contract benefits and terminations....................................... (1,230) (86,336) Contract maintenance charges............................................................. (929) (1,466) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (47,451) (86,624) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (22) 18 -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (56,285) (93,644) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 115,693 209,337 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 59,408 $115,693 ======== ========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/BLACKROCK BASIC VALUE EQUITY* ----------------- 2015 2014 -------- ------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 1,086 $ 949 Net realized gain (loss) on investments.................................................. 5,024 2,717 Net change in unrealized appreciation (depreciation) of investments...................... (10,722) 4,417 -------- ------- Net increase (decrease) in net assets resulting from operations.......................... (4,612) 8,083 -------- ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 3,206 3,646 Transfers between Variable Investment Options including guaranteed interest account, net. (11,064) -- Redemptions for contract benefits and terminations....................................... -- (6,444) Contract maintenance charges............................................................. (971) (1,025) -------- ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (8,829) (3,823) -------- ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (13,441) 4,260 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 91,081 86,821 -------- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 77,640 $91,081 ======== =======
EQ/BOSTON ADVISORS EQUITY INCOME* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 5,308 $ 4,366 Net realized gain (loss) on investments.................................................. 15,227 35,787 Net change in unrealized appreciation (depreciation) of investments...................... (24,471) (19,370) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (3,936) 20,783 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 46,005 38,060 Transfers between Variable Investment Options including guaranteed interest account, net. 16,294 30,221 Redemptions for contract benefits and terminations....................................... (13,990) (32,390) Contract maintenance charges............................................................. (2,586) (2,308) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 45,723 33,583 -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 41,787 54,366 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 291,580 237,214 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $333,367 $291,580 ======== ========
EQ/CALVERT SOCIALLY RESPONSIBLE* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 23,197 $ 20,346 Net realized gain (loss) on investments.................................................. 561,902 425,331 Net change in unrealized appreciation (depreciation) of investments...................... (571,837) (100,554) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 13,262 345,123 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 185,722 254,552 Transfers between Variable Investment Options including guaranteed interest account, net. (109,030) (244,959) Redemptions for contract benefits and terminations....................................... (548,186) (457,084) Contract maintenance charges............................................................. (18,634) (22,575) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (490,128) (470,066) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (476,866) (124,943) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,734,351 2,859,294 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,257,485 $2,734,351 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/CAPITAL GUARDIAN RESEARCH* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 41,728 $ 50,410 Net realized gain (loss) on investments.................................................. 559,201 294,608 Net change in unrealized appreciation (depreciation) of investments...................... (433,987) 379,857 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 166,942 724,875 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 511,376 466,349 Transfers between Variable Investment Options including guaranteed interest account, net. (217,874) (253,972) Redemptions for contract benefits and terminations....................................... (849,190) (663,856) Contract maintenance charges............................................................. (62,256) (65,431) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (617,944) (516,910) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. 201 (201) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (450,801) 207,764 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 7,633,412 7,425,648 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $7,182,611 $7,633,412 ========== ==========
EQ/EQUITY 500 INDEX* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 377,934 $ 332,495 Net realized gain (loss) on investments.................................................. 2,245,114 1,212,435 Net change in unrealized appreciation (depreciation) of investments...................... (2,436,673) 1,458,599 ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... 186,375 3,003,529 ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 1,740,670 2,539,620 Transfers between Variable Investment Options including guaranteed interest account, net. (127,199) (73,515) Redemptions for contract benefits and terminations....................................... (3,902,564) (3,144,599) Contract maintenance charges............................................................. (192,676) (211,856) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (2,481,769) (890,350) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 15 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (2,295,394) 2,113,194 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 25,587,459 23,474,265 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $23,292,065 $25,587,459 =========== ===========
EQ/GAMCO MERGERS AND ACQUISITIONS* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (29) $ (28) Net realized gain (loss) on investments.................................................. 5,887 3,163 Net change in unrealized appreciation (depreciation) of investments...................... (2,689) (2,303) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... 3,169 832 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 15,743 10,837 Transfers between Variable Investment Options including guaranteed interest account, net. (2,068) (73,560) Redemptions for contract benefits and terminations....................................... (2,329) (498) Contract maintenance charges............................................................. (960) (1,010) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 10,386 (64,231) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 13,555 (63,399) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 115,447 178,846 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $129,002 $115,447 ======== ========
----------- 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-59 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/GAMCO SMALL COMPANY VALUE* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 14,724 $ 7,624 Net realized gain (loss) on investments.................................................. 289,640 454,155 Net change in unrealized appreciation (depreciation) of investments...................... (470,211) (363,990) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (165,847) 97,789 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 364,615 444,005 Transfers between Variable Investment Options including guaranteed interest account, net. (145,691) (635,859) Redemptions for contract benefits and terminations....................................... (306,679) (356,069) Contract maintenance charges............................................................. (23,312) (29,634) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (111,067) (577,557) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (2,400) -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (279,314) (479,768) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,064,558 3,544,326 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,785,244 $3,064,558 ========== ==========
EQ/INTERMEDIATE GOVERNMENT BOND* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 23,053 $ 15,300 Net realized gain (loss) on investments.................................................. 20,635 25,269 Net change in unrealized appreciation (depreciation) of investments...................... (30,649) 17,820 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 13,039 58,389 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 593,856 459,408 Transfers between Variable Investment Options including guaranteed interest account, net. 25,398 212,482 Redemptions for contract benefits and terminations....................................... (620,515) (606,207) Contract maintenance charges............................................................. (34,227) (37,974) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (35,488) 27,709 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (8) 79 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (22,457) 86,177 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 3,957,727 3,871,550 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $3,935,270 $3,957,727 ========== ==========
EQ/INTERNATIONAL EQUITY INDEX* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 246,435 $ 349,049 Net realized gain (loss) on investments.................................................. (438,828) (1,018,986) Net change in unrealized appreciation (depreciation) of investments...................... 6,747 (138,525) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (185,646) (808,462) ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 946,190 908,165 Transfers between Variable Investment Options including guaranteed interest account, net. (366,044) (181,894) Redemptions for contract benefits and terminations....................................... (1,162,966) (1,846,779) Contract maintenance charges............................................................. (86,387) (104,467) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (669,207) (1,224,975) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 18 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (854,853) (2,033,419) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 10,754,170 12,787,589 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 9,899,317 $10,754,170 =========== ===========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/JPMORGAN VALUE OPPORTUNITIES* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 1,076 $ 1,090 Net realized gain (loss) on investments.................................................. 875 702 Net change in unrealized appreciation (depreciation) of investments...................... (2,816) 12,154 -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (865) 13,946 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 2 -- Transfers between Variable Investment Options including guaranteed interest account, net. 44,493 -- Redemptions for contract benefits and terminations....................................... -- -- Contract maintenance charges............................................................. (1,433) (1,096) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 43,062 (1,096) -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 42,197 12,850 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 110,445 97,595 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $152,642 $110,445 ======== ========
EQ/LARGE CAP GROWTH INDEX* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 4,909 $ 2,038 Net realized gain (loss) on investments.................................................. 47,249 27,824 Net change in unrealized appreciation (depreciation) of investments...................... (40,710) (10,347) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... 11,448 19,515 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 110,482 123,370 Transfers between Variable Investment Options including guaranteed interest account, net. 197,001 111,864 Redemptions for contract benefits and terminations....................................... (74,737) (93,175) Contract maintenance charges............................................................. (3,428) (1,673) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 229,318 140,386 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 240,766 159,901 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 282,211 122,310 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $522,977 $282,211 ======== ========
EQ/MFS INTERNATIONAL GROWTH* ------------------- 2015 2014 --------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 2,309 $ 4,278 Net realized gain (loss) on investments.................................................. 704 21,769 Net change in unrealized appreciation (depreciation) of investments...................... (81) (48,462) --------- -------- Net increase (decrease) in net assets resulting from operations.......................... 2,932 (22,415) --------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 75,297 52,736 Transfers between Variable Investment Options including guaranteed interest account, net. 34,696 79,269 Redemptions for contract benefits and terminations....................................... (182,040) (31,874) Contract maintenance charges............................................................. (3,060) (3,314) --------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (75,107) 96,817 --------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (24) 25 --------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (72,199) 74,427 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 449,868 375,441 --------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 377,669 $449,868 ========= ========
----------- 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-61 AXA EQUITABLE LIFE INSURANCE COMPANY SEPARATE ACCOUNT NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/MID CAP INDEX* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 5,744 $ 3,303 Net realized gain (loss) on investments.................................................. 16,504 26,688 Net change in unrealized appreciation (depreciation) of investments...................... (38,272) 3,514 -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (16,024) 33,505 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 94,644 142,182 Transfers between Variable Investment Options including guaranteed interest account, net. 165,512 165,647 Redemptions for contract benefits and terminations....................................... (80,559) (63,967) Contract maintenance charges............................................................. (4,376) (3,073) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 175,221 240,789 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 159,197 274,294 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 489,887 215,593 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $649,084 $489,887 ======== ========
EQ/MONEY MARKET* ------------------------ 2015 2014 ----------- ----------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (3,383) $ (3,068) Net realized gain (loss) on investments.................................................. 45 88 Net change in unrealized appreciation (depreciation) of investments...................... (230) (12) ----------- ----------- Net increase (decrease) in net assets resulting from operations.......................... (3,568) (2,992) ----------- ----------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 6,229,062 5,949,155 Transfers between Variable Investment Options including guaranteed interest account, net. 924,003 (955,761) Redemptions for contract benefits and terminations....................................... (7,134,770) (5,052,241) Contract maintenance charges............................................................. (146,400) (168,128) ----------- ----------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (128,105) (226,975) ----------- ----------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. 37 -- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (131,636) (229,967) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 13,950,208 14,180,175 ----------- ----------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $13,818,572 $13,950,208 =========== ===========
EQ/MORGAN STANLEY MID CAP GROWTH* ------------------ 2015 2014 -------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (34) $ (20) Net realized gain (loss) on investments.................................................. (10,850) 18,460 Net change in unrealized appreciation (depreciation) of investments...................... 603 (15,027) -------- -------- Net increase (decrease) in net assets resulting from operations.......................... (10,281) 3,413 -------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 32,408 27,622 Transfers between Variable Investment Options including guaranteed interest account, net. 17,648 93,465 Redemptions for contract benefits and terminations....................................... (55,657) (6,262) Contract maintenance charges............................................................. (1,063) (867) -------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (6,664) 113,958 -------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- -------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (16,945) 117,371 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 150,016 32,645 -------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $133,071 $150,016 ======== ========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/PIMCO ULTRA SHORT BOND* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 9,532 $ 9,330 Net realized gain (loss) on investments.................................................. (10,336) (4,744) Net change in unrealized appreciation (depreciation) of investments...................... (5,432) (7,078) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (6,236) (2,492) ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 264,870 411,224 Transfers between Variable Investment Options including guaranteed interest account, net. (164,102) (264,823) Redemptions for contract benefits and terminations....................................... (467,732) (403,727) Contract maintenance charges............................................................. (16,291) (24,064) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (383,255) (281,390) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. (20) 25 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (389,511) (283,857) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,468,681 2,752,538 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,079,170 $2,468,681 ========== ==========
EQ/QUALITY BOND PLUS* ----------------- 2015 2014 ------- -------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 74 $ 139 Net realized gain (loss) on investments.................................................. 12 (2,196) Net change in unrealized appreciation (depreciation) of investments...................... (67) 2,909 ------- -------- Net increase (decrease) in net assets resulting from operations.......................... 19 852 ------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... -- -- Transfers between Variable Investment Options including guaranteed interest account, net. (2,252) -- Redemptions for contract benefits and terminations....................................... -- (36,878) Contract maintenance charges............................................................. (104) (321) ------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (2,356) (37,199) ------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (2,337) (36,347) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 9,406 45,753 ------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 7,069 $ 9,406 ======= ========
EQ/SMALL COMPANY INDEX* ---------------------- 2015 2014 ---------- ---------- DECREASE IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 41,195 $ 38,764 Net realized gain (loss) on investments.................................................. 607,027 1,090,363 Net change in unrealized appreciation (depreciation) of investments...................... (842,157) (879,803) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (193,935) 249,324 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 486,363 526,792 Transfers between Variable Investment Options including guaranteed interest account, net. (253,712) (621,356) Redemptions for contract benefits and terminations....................................... (893,039) (684,775) Contract maintenance charges............................................................. (39,826) (47,795) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (700,214) (827,134) ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (894,149) (577,810) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 5,293,190 5,871,000 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $4,399,041 $5,293,190 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
EQ/T. ROWE PRICE GROWTH STOCK* ------------------- 2015 2014 --------- -------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (97) $ (59) Net realized gain (loss) on investments.................................................. 62,520 13,901 Net change in unrealized appreciation (depreciation) of investments...................... (26,733) 11,694 --------- -------- Net increase (decrease) in net assets resulting from operations.......................... 35,690 25,536 --------- -------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 77,527 92,646 Transfers between Variable Investment Options including guaranteed interest account, net. 47,693 168,907 Redemptions for contract benefits and terminations....................................... (150,884) (38,028) Contract maintenance charges............................................................. (3,208) (2,764) --------- -------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (28,872) 220,761 --------- -------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- --------- -------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 6,818 246,297 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 415,085 168,788 --------- -------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $ 421,903 $415,085 ========= ========
EQ/WELLS FARGO OMEGA GROWTH* ------------------- 2015 2014 -------- --------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (59) $ (38) Net realized gain (loss) on investments.................................................. 27,196 63,014 Net change in unrealized appreciation (depreciation) of investments...................... (21,311) (53,460) -------- --------- Net increase (decrease) in net assets resulting from operations.......................... 5,826 9,516 -------- --------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 83,351 61,810 Transfers between Variable Investment Options including guaranteed interest account, net. 23,461 (26,803) Redemptions for contract benefits and terminations....................................... (71,247) (252,591) Contract maintenance charges............................................................. (3,005) (3,692) -------- --------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 32,560 (221,276) -------- --------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- 4 -------- --------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 38,386 (211,756) NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 417,856 629,612 -------- --------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $456,242 $ 417,856 ======== =========
MULTIMANAGER CORE BOND* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 26,376 $ 17,434 Net realized gain (loss) on investments.................................................. (13,766) (8,275) Net change in unrealized appreciation (depreciation) of investments...................... (14,469) 16,626 ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (1,859) 25,785 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 400,036 210,996 Transfers between Variable Investment Options including guaranteed interest account, net. 487,342 175,573 Redemptions for contract benefits and terminations....................................... (304,780) (125,608) Contract maintenance charges............................................................. (10,317) (7,285) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 572,281 253,676 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 570,422 279,461 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,058,625 779,164 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,629,047 $1,058,625 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
MULTIMANAGER TECHNOLOGY* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ (1,081) $ (914) Net realized gain (loss) on investments.................................................. 691,582 791,704 Net change in unrealized appreciation (depreciation) of investments...................... (396,663) (244,342) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... 293,838 546,448 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 358,375 888,183 Transfers between Variable Investment Options including guaranteed interest account, net. (375,154) 72,040 Redemptions for contract benefits and terminations....................................... (475,386) (617,477) Contract maintenance charges............................................................. (35,888) (38,773) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (528,053) 303,973 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (234,215) 850,421 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 4,798,253 3,947,832 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $4,564,038 $4,798,253 ========== ==========
TARGET 2015 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 24,585 $ 29,889 Net realized gain (loss) on investments.................................................. 34,361 435,600 Net change in unrealized appreciation (depreciation) of investments...................... (101,199) (395,052) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (42,253) 70,437 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 86,372 545,158 Transfers between Variable Investment Options including guaranteed interest account, net. 300,394 207,279 Redemptions for contract benefits and terminations....................................... (790,489) (598,559) Contract maintenance charges............................................................. (20,597) (22,809) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... (424,320) 131,069 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- (4) ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (466,573) 201,502 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,529,528 2,328,026 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,062,955 $2,529,528 ========== ==========
TARGET 2025 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 32,437 $ 31,743 Net realized gain (loss) on investments.................................................. 76,906 495,467 Net change in unrealized appreciation (depreciation) of investments...................... (163,640) (404,840) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (54,297) 122,370 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 426,659 973,126 Transfers between Variable Investment Options including guaranteed interest account, net. (4,760) 66,457 Redemptions for contract benefits and terminations....................................... (385,252) (993,371) Contract maintenance charges............................................................. (21,812) (26,727) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 14,835 19,485 ---------- ---------- Net increase (decrease) in amount retained by AXA in Separate Account No. 66............. -- -- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (39,462) 141,855 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 2,617,769 2,475,914 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $2,578,307 $2,617,769 ========== ==========
----------- 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 NO. 66 STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED) FOR THE YEARS OR PERIODS ENDED DECEMBER 31, 2015 AND 2014
TARGET 2035 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 20,844 $ 20,594 Net realized gain (loss) on investments.................................................. 90,192 235,306 Net change in unrealized appreciation (depreciation) of investments...................... (140,669) (189,521) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (29,633) 66,379 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 473,611 430,429 Transfers between Variable Investment Options including guaranteed interest account, net. (200,836) 19,447 Redemptions for contract benefits and terminations....................................... (238,123) (204,392) Contract maintenance charges............................................................. (13,992) (14,856) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 20,660 230,628 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... (8,973) 297,007 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,654,545 1,357,538 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,645,572 $1,654,545 ========== ==========
TARGET 2045 ALLOCATION* ---------------------- 2015 2014 ---------- ---------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 17,631 $ 16,036 Net realized gain (loss) on investments.................................................. 66,074 179,956 Net change in unrealized appreciation (depreciation) of investments...................... (111,882) (142,572) ---------- ---------- Net increase (decrease) in net assets resulting from operations.......................... (28,177) 53,420 ---------- ---------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 378,976 255,962 Transfers between Variable Investment Options including guaranteed interest account, net. 22,072 34,274 Redemptions for contract benefits and terminations....................................... (265,337) (156,900) Contract maintenance charges............................................................. (11,727) (11,465) ---------- ---------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 123,984 121,871 ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 95,807 175,291 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. 1,237,298 1,062,007 ---------- ---------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $1,333,105 $1,237,298 ========== ==========
TARGET 2055 ALLOCATION*(B) -------------- 2015 -------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS: Net investment income (loss)............................................................. $ 457 Net realized gain (loss) on investments.................................................. 25 Net change in unrealized appreciation (depreciation) of investments...................... (2,265) ------- Net increase (decrease) in net assets resulting from operations.......................... (1,783) ------- FROM CONTRACTOWNERS TRANSACTIONS: Payments received from contractowners.................................................... 3,170 Transfers between Variable Investment Options including guaranteed interest account, net. 31,248 Redemptions for contract benefits and terminations....................................... -- Contract maintenance charges............................................................. (106) ------- Net increase (decrease) in net assets resulting from contractowner transactions.......... 34,312 ------- NET INCREASE (DECREASE) IN NET ASSETS...................................................... 32,529 NET ASSETS -- BEGINNING OF YEAR OR PERIOD.................................................. -- ------- NET ASSETS -- END OF YEAR OR PERIOD........................................................ $32,529 =======
----------- 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)Units were made available on May 26, 2015. FSA-66 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2015 1. Organization Separate Accounts No. 10 (Pooled), 4 (Pooled), 3 (Pooled), and 66 (collectively, the "Funds" or "Accounts") of AXA Equitable Life Insurance Company ("AXA Equitable"), were established under New York State Insurance Law. Pursuant to such law, to the extent provided in the applicable contracts, the net assets in the Funds are not chargeable with liabilities arising out of any other business of AXA Equitable. The Funds are investment companies and, accordingly, follow the investment company accounting 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"). These financial statements reflect the financial position and results of operations for each of the Separate Accounts No. 10, 4, 3 and each of the Variable Investment Options of Separate Account No. 66. Annuity contracts issued by AXA Equitable for which the Accounts are the funding vehicles are Equi-Pen-Plus ("EPP"), Members Retirement Program ("MRP"), and Retirement Investment Account ("RIA") (collectively, "the Plans"). Institutional Contracts reflects investments in Funds by Contractowners of group annuity contracts issued by AXA Equitable. Assets of the Plans and Institutional are invested in a number of investment Funds (available Funds vary by Plan). Separate Account No. 66 consists of 45 Variable Investment Options. The Account invests in shares of mutual funds of AXA Premier VIP Trust ("VIP") and EQ Advisors Trust ("EQAT") (collectively "the Trusts"). The Trusts are open-end 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. As used herein, "the Trusts" refers to both the Trusts and the Portfolios. These financial statements and notes are those of the Accounts. The Contractowners invest in Separate Accounts No. 10, 4, 3 and 66 under the following respective names:
POOLED SEPARATE ACCOUNT FUNDS** RIA ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Common Stock Fund Separate Account No. 3 The AllianceBernstein Mid Cap Growth Fund EQ ADVISORS TRUST* Separate Account No. 66: ------------------ AXA Global Equity Managed Volatility EQ/Large Cap Growth Index AXA International Core Managed EQ/Mid Cap Index Volatility EQ/Money Market AXA International Value Managed EQ/Quality Bond PLUS Volatility EQ/T. Rowe Price Growth Stock AXA Large Cap Core Managed Volatility EQ/Wells Fargo Omega Growth AXA Large Cap Growth Managed Multimanager Technology Volatility AXA PREMIER VIP TRUST* AXA Large Cap Value Managed Volatility Charter/SM/ Multi-Sector Bond AXA Mid Cap Value Managed Volatility Charter/SM/ Small Cap Value AXA/AB Small Cap Growth/(1)/ EQ/BlackRock Basic Value Equity EQ/Calvert Socially Responsible EQ/Capital Guardian Research EQ/Equity 500 Index EQ/Intermediate Government Bond EQ/International Equity Index EQ/JPMorgan Value Opportunities MRP POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Growth Equity Fund Separate Account No. 3 The AllianceBernstein Mid Cap Growth Fund Separate Account No. 66: EQ ADVISORS TRUST* AXA PREMIER VIP TRUST* ------------------ ---------------------- All Asset Aggressive - Alt 25 AXA Aggressive Allocation All Asset Growth - Alt 20 AXA Conservative Allocation All Asset Moderate Growth - Alt 15 AXA Conservative-Plus Allocation AXA Global Equity Managed Volatility AXA Moderate Allocation AXA International Core Managed AXA Moderate-Plus Allocation Volatility Charter/SM/ Multi-Sector Bond AXA Large Cap Growth Managed Target 2015 Allocation Volatility Target 2025 Allocation AXA Large Cap Value Managed Volatility Target 2035 Allocation AXA Mid Cap Value Managed Volatility Target 2045 Allocation AXA/AB Small Cap Growth/(1)/ Target 2055 Allocation EQ/Boston Advisors Equity Income EQ/Calvert Socially Responsible EQ/Capital Guardian Research EQ/Equity 500 Index EQ/GAMCO Mergers and Acquisitions EQ/GAMCO Small Company Value EQ/Intermediate Government Bond EQ/International Equity Index EQ/Large Cap Growth Index EQ/MFS International Growth EQ/Mid Cap Index EQ/Money Market EQ/Morgan Stanley Mid Cap Growth EQ/PIMCO Ultra Short Bond EQ/Small Company Index EQ/T. Rowe Price Growth Stock EQ/Wells Fargo Omega Growth Multimanager Core Bond Multimanager Technology
FSA-67 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 1. Organization (Concluded) EPP POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 The AllianceBernstein Balanced Fund Separate Account No. 4 The AllianceBernstein Common Stock Fund INSTITUTIONAL POOLED SEPARATE ACCOUNT FUNDS** ------------------------------- Separate Account No. 10 Balanced Account Separate Account No. 4 Growth Stock Account Separate Account No. 3 Mid Cap Growth Stock Account ---------- * 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. **As defined in the respective Prospectus of the Plans. (1)Formerly known as EQ/AllianceBernstein Small Cap Growth Under applicable insurance law, the assets and liabilities of the Accounts are clearly identified and distinguished from AXA Equitable's other assets and liabilities. All Contracts are issued by AXA Equitable. The assets of the Accounts are the property of AXA Equitable. However, the portion of the Accounts' assets attributable to the Contracts will not be chargeable with liabilities arising out of any other business AXA Equitable may conduct. Separate Account No. 66 is used to fund benefits under group annuity Contract ("Contracts") in connection with retirement savings on a tax-deferred basis. The amount retained by AXA Equitable in Separate Accounts No. 4 and 66 arises primarily from (1) contributions from AXA Equitable, (2) expense risk charges accumulated in the account, and (3) 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 contractowners. Amounts retained by AXA Equitable are not subject to charges for expense risks, assets-based administration charges are distribution charges. Amount retained by AXA Equitable in the Account may be transferred at any time by AXA Equitable to its General Account ("General Account"). AXA Equitable's General Account is subject to creditor rights. 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 income and expenses for the period. Actual results could differ from those estimates. ACCOUNTING POLICIES SPECIFIC TO SEPARATE ACCOUNTS NO. 10, 4 AND 3: Investment securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by AXA Equitable's investment officers. In general, the market value of securities which are readily available and deemed reliable are determined as follows: Securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price. Futures and forward contracts are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used. U.S. government securities and other debt instruments having 60 days or less remaining until maturity are valued at amortized cost if their original maturity was 60 days or less; or by amortizing their fair value as of the 61st day prior to maturity if their original term to maturity exceeded 60 days. Fixed-income securities, including mortgage backed and asset backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker/dealers. In cases where broker/dealer quotes are obtained, the investment advisor may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. FSA-68 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Continued) Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. Other assets that do not have a readily available market price are valued at fair value as determined in good faith by AXA Equitable's investment officers. INVESTMENT TRANSACTIONS: Security transactions are recorded on the trade date. Amortized cost of debt securities where applicable is adjusted for amortization of premium or accretion of discount. Dividend income is recorded on the ex-dividend date; interest income (including amortization of premium and discount on securities using the effective yield method) is accrued daily. Realized gains and losses on the sale of investments are computed on the basis of the identified cost of the related investments sold. The books and records of the Accounts are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions. Transaction gains or losses resulting from changes in the exchange rate during the reporting period or upon settlement of the foreign currency transactions are reflected under "Realized and Unrealized Gain (Loss) on Investments" in the Statement of Operations. Although the net assets of the Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held or sold during the year. FUTURES AND FORWARD CONTRACTS: Futures and forward contracts are agreements to buy or sell a security, foreign currency, or stock index for a set price in the future. Initial margin deposits are made upon entering into futures contracts and can be either in cash or securities. Separate Accounts No. 10 and 4 may buy or sell futures contracts solely for the purpose of protecting their Account's securities against anticipated future changes in interest rates that might adversely affect the value of an Account's securities or the price of the securities that an Account intends to purchase at a later date. During the period the futures and forward contracts are open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each trading day. Variation margin payments for futures contracts are received or made, depending upon whether unrealized gains or losses are incurred. For the year ended December 31, 2015, the average monthly notional value of futures contracts held in Separate Account No. 4 was $578,119. All futures contracts were related to equity contracts. For the year ended December 31, 2015, Separate Account No. 10 did not enter into any futures contracts. Separate Account No. 3 does not enter into futures contracts. When the futures or forward contract is closed, the Accounts record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transactions and the Accounts' basis in the contract. Should interest rates or the price of securities move unexpectedly, the Accounts may not achieve the anticipated benefits of the financial futures or forward contracts and may incur a loss. The use of futures and forward transactions involves the risk of imperfect correlation in movements in the prices of futures and forward contracts, interest rates and the underlying hedged assets. Separate Account No. 10 may enter into forward currency contracts in order to hedge its exposure to changes in foreign security holdings, but did not enter into any forward currency contracts during the year ended December 31, 2015. Separate Accounts No. 3, and 4 do not enter into forward currency contracts. A forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The realized gain or loss arising from the difference between the original contracts and the closing of such contracts is included in realized gains and losses from foreign currency transactions. FSA-69 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 2. Significant Accounting Policies (Continued) MARKET AND CREDIT RISK: Futures and forward contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities. The contract amounts of these futures and forward contracts reflect the extent of the Accounts' exposure to off-balance sheet risk. Use of long futures contracts subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. The Accounts bear the market risk that arises from any changes in security values. The credit risk for futures contracts is limited to failure of the exchange or board of trade that acts as the counterparty of the Accounts' futures transactions. Forward contracts are entered into directly with a counterparty and not through an exchange and can be terminated only by agreement of both parties to the contract. There is no daily margin settlement and the Accounts are exposed to the risk of default by the counterparty. CONTRACTS IN PAYOUT: Net assets allocated to Contracts in the payout period are computed according to various mortality tables, depending on the year the benefits were purchased. The tables used are the 1951 GA, the 1971 GAM, the 1983 GAM, and the 1994 GAR. The assumed investment returns vary by Contract and range from 4 percent to 8.75 percent. The Contracts are participating group annuities, and thus, the mortality risk is borne by the Contractowner, as long as the Contract has not been discontinued. AXA Equitable retains the ultimate obligation to pay the benefits if the Contract funds become insufficient and the Contractowner elects to discontinue the contract. OTHER ASSETS AND LIABILITIES: Amounts due to/from the General Account represent receivables/payables for policy related transactions predominantly related to premiums, surrenders and death benefits. CONTRACT PAYMENTS AND WITHDRAWALS: Payments received from Contractowners represent contributions under the Contracts (excluding amounts allocated to the guaranteed interest option, reflected in the General Account) after the deduction of any applicable withdrawal changes. The amount allocated to the guaranteed interest option earns interest at the current guaranteed interest rate which is an annual effective rate. Withdrawals are payments to participants and beneficiaries made under the terms of the Plans and include amounts that participants have requested to be withdrawn and paid to them. 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 Funds 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 the Contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable to the Account if the law is changed. FOREIGN TAXES: The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. ACCOUNTING POLICIES SPECIFIC TO SEPARATE ACCOUNT NO. 66: INVESTMENTS: Investments are made in shares of the Portfolios and the fair values of investments are valued at 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 distributions of net realized gains from the Portfolios are recorded and automatically reinvested on the ex-dividend date. Realized gains and losses include (1) gains and losses on the redemptions of investments in the Portfolios (determined on the identified cost basis) and (2) distributions of net realized gains on investment transactions of the Portfolios. FSA-70 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 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 the various Portfolios by Contractowners. Receivable/payable for shares of the Portfolios sold/purchased represent unsettled trades. CONTRACT PAYMENTS AND TRANSFERS: Payments received from Contractowners represent participant contributions under the Contracts (but exclude amounts allocated to the guaranteed interest account, reflected in the General Account) reduced by deductions and charges, including premium charges, as applicable, and state premium taxes. Contractowners may allocate amounts in their individual accounts to Variable Investment Options of the Account and/or to the guaranteed interest account of AXA Equitable's General Account. 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. 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 or applied to the purchase of annuities. 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 Funds 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 the Contracts participating in the Account. Accordingly, no provision for federal income taxes is required. However, AXA Equitable retains the right to charge for any federal income tax incurred which is applicable 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 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. FSA-71 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 3. Fair Value Disclosures (Continued) Assets measured at fair value on a recurring basis are summarized below as of the dates indicated:
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2015 ----------------------------------- LEVEL 1 ----------------------------------- SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ----------- ----------- ----------- ASSETS Investments: Common stocks Consumer discretionary...................... $ 1,721,365 $17,517,503 $ 6,255,483 Consumer staples............................ 878,745 9,202,128 692,368 Energy...................................... 505,166 419,992 246,131 Financials.................................. 1,849,254 4,543,604 2,996,106 Health Care................................. 1,371,484 14,052,418 3,694,953 Industrials................................. 808,920 8,791,703 -- Materials & processing...................... 328,644 2,840,301 509,631 Producer durables........................... -- -- 3,632,684 Technology.................................. 2,173,968 22,948,921 3,803,937 Telecommunication services.................. 176,521 1,673,187 -- Utilities................................... 334,035 28,130 361,548 ----------- ----------- ----------- TOTAL COMMON STOCKS........................ 10,148,102 82,017,887 22,192,841 Futures Contracts........................... -- 305,310 -- Rights...................................... 883 -- -- ----------- ----------- ----------- TOTAL LEVEL 1............................... $10,148,985 $82,323,197 $22,192,841 =========== =========== =========== LEVEL 2 ----------------------------------- SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ----------- ----------- ----------- ASSETS Investments: Fixed Maturities, available for sale Corporate................................... $ 2,971,354 $ -- $ -- U.S. Treasury, government and agency........ 4,891,108 -- -- States and political subdivision............ 36,407 -- -- Foreign governments......................... 90,798 -- -- Commercial mortgage-backed.................. 367,131 -- -- Residential mortgage-backed................. 2,363,345 -- -- Asset-backed................................ 132,272 -- -- ----------- ----------- ----------- TOTAL FIXED MATURITIES, AVAILABLE FOR SALE. 10,852,415 -- -- ----------- ----------- ----------- Common stocks Consumer discretionary...................... 747,570 -- -- Consumer staples............................ 861,487 -- -- Energy...................................... 361,542 -- -- Financials.................................. 1,296,875 -- -- Health care................................. 784,599 -- -- Industrials................................. 711,638 -- -- Materials & processing...................... 420,924 -- -- Technology.................................. 174,430 -- -- Telecommunication services.................. 341,177 -- -- Utilities................................... 212,291 -- -- ----------- ----------- ----------- TOTAL COMMON STOCKS........................ 5,912,533 -- -- =========== =========== =========== TOTAL LEVEL 2.............................. $16,764,948 $ -- $ -- =========== =========== ===========
FSA-72 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 3. Fair Value Disclosures (Concluded)
LEVEL 3 ------------------------------ SEPARATE SEPARATE SEPARATE ACCOUNT ACCOUNT ACCOUNT NO. 10/(1)/ NO. 4/(1)/ NO. 3/(1)/ ---------- --------- --------- ASSETS Investments: Fixed Maturities, available for sale Commercial mortgage-backed................. $35,860 $-- $-- Asset-backed............................... 25,148 -- -- ------- --- --- TOTAL LEVEL 3................................ $61,008 $-- $-- ======= === ===
The table below presents a reconciliation for all Level 3 Assets at December 31, 2015:
LEVEL 3 INSTRUMENTS FAIR VALUE MEASUREMENTS SEPARATE ACCOUNT NO. 10 ----------------------------------------------- FIXED MATURITIES COMMON STOCK -------------------- ------------ COMMERCIAL MORTGAGE- ASSET- TOTAL BACKED BACKED INDUSTRIALS INVESTMENTS ---------- -------- ------------ ----------- BALANCE, DECEMBER 31, 2014................... $37,567 $ 63,646 $ 224 $101,437 Total gains (losses) realized and unrealized, included in: Earnings as: Net amortization/accretion................. (42) 39 -- (3) ------- -------- ----- -------- SUBTOTAL.................................. 37,525 63,685 224 101,434 ------- -------- ----- -------- Change in unrealized gain.................. 3,798 67 2 3,867 Purchases.................................. -- -- -- -- Sales...................................... -- -- (226) (226) Settlements................................ (5,463) (6,635) -- (12,098) Transfers out/(2)/......................... -- (31,969) -- (31,969) ------- -------- ----- -------- BALANCE, DECEMBER 31, 2015................... $35,860 $ 25,148 $ -- $ 61,008 ======= ======== ===== ========
---------- (1)For Separate Account No. 66, 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 for Separate Account No. 66. (2)For the year ended December 31, 2015, an asset-backed security transferred from level 3 to level 2 due to changes in observability of market data at the measurement date. The table below details the changes in unrealized gains for 2015 by category for Level 3 assets still held at December 31, 2015:
SEPARATE ACCOUNT NO. 10 ---------------- LEVEL 3 INSTRUMENTS STILL HELD AT DECEMBER 31, 2015 Change in unrealized gains or losses Fixed maturities, available for sale: Commercial mortgage-backed.................. $3,798 Asset-backed................................ 67 ------ TOTAL FIXED MATURITIES, AVAILABLE FOR SALE. 3,865 ------ Common Stocks: Financials.................................. 2 ------ TOTAL......................................... $3,867 ======
FSA-73 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 4. Purchases and Sales of Portfolios Investment Security Transactions: For the year ended December 31, 2015, investment security transactions, excluding short-term debt securities, were as follows for Separate Accounts No. 10, 4, and 3:
PURCHASES SALES ---------------------------- ---------------------------- U.S. U.S. STOCKS AND GOVERNMENT STOCKS AND GOVERNMENT FUND DEBT SECURITIES AND AGENCIES DEBT SECURITIES AND AGENCIES ---- --------------- ------------ --------------- ------------ Separate Account No. 10...................... $35,103,311 $6,032,192 $36,692,380 $7,427,445 Separate Account No. 4....................... 17,214,855 -- 30,118,005 -- Separate Account No. 3....................... 19,107,087 -- 22,173,937 --
The cost of purchases and proceeds from sales of Portfolios for the year ended December 31, 2015 were as follows for Separate Account No. 66: PURCHASES SALES ---------- ---------- ALL ASSET AGGRESSIVE-ALT 25.................. $ 59,106 $ 3,219 ALL ASSET GROWTH-ALT 20...................... 25,637 38,193 ALL ASSET MODERATE GROWTH-ALT 15............. 4,438 1,135 AXA AGGRESSIVE ALLOCATION.................... 529,311 271,625 AXA CONSERVATIVE ALLOCATION.................. 266,955 262,101 AXA CONSERVATIVE-PLUS ALLOCATION............. 290,022 155,742 AXA GLOBAL EQUITY MANAGED VOLATILITY......... 167,446 364,586 AXA INTERNATIONAL CORE MANAGED VOLATILITY.... 158,518 619,567 AXA INTERNATIONAL VALUE MANAGED VOLATILITY... 2,338 2,230 AXA LARGE CAP CORE MANAGED VOLATILITY........ -- 90,641 AXA LARGE CAP GROWTH MANAGED VOLATILITY...... 481,018 1,007,376 AXA LARGE CAP VALUE MANAGED VOLATILITY....... 586,045 1,433,283 AXA MID CAP VALUE MANAGED VOLATILITY......... 456,942 1,579,840 AXA MODERATE ALLOCATION...................... 4,310,816 2,847,303 AXA MODERATE-PLUS ALLOCATION................. 540,784 137,021 AXA/AB SMALL CAP GROWTH...................... 240,851 257,530 CHARTER/SM/ MULTI-SECTOR BOND................ 240,367 105,960 CHARTER/SM/ SMALL CAP VALUE.................. 1,017 48,118 EQ/BLACKROCK BASIC VALUE EQUITY.............. 4,302 12,045 EQ/BOSTON ADVISORS EQUITY INCOME............. 279,736 199,832 EQ/CALVERT SOCIALLY RESPONSIBLE.............. 485,740 707,143 EQ/CAPITAL GUARDIAN RESEARCH................. 518,922 1,095,169 EQ/EQUITY 500 INDEX.......................... 2,346,967 4,022,016 EQ/GAMCO MERGERS AND ACQUISITIONS............ 21,489 5,229 EQ/GAMCO SMALL COMPANY VALUE................. 510,445 460,653 EQ/INTERMEDIATE GOVERNMENT BOND.............. 995,091 1,003,119 EQ/INTERNATIONAL EQUITY INDEX................ 1,082,474 1,505,463 EQ/JPMORGAN VALUE OPPORTUNITIES.............. 45,464 1,326 EQ/LARGE CAP GROWTH INDEX.................... 555,907 271,328 EQ/MFS INTERNATIONAL GROWTH.................. 123,600 190,749 EQ/MID CAP INDEX............................. 277,901 96,912 EQ/MONEY MARKET.............................. 8,395,347 8,526,931 EQ/MORGAN STANLEY MID CAP GROWTH............. 71,930 75,365 EQ/PIMCO ULTRA SHORT BOND.................... 326,797 700,605 EQ/QUALITY BOND PLUS......................... 79 2,361 EQ/SMALL COMPANY INDEX....................... 798,992 1,088,810 EQ/T. ROWE PRICE GROWTH STOCK................ 292,785 304,955 EQ/WELLS FARGO OMEGA GROWTH.................. 182,342 116,042 MULTIMANAGER CORE BOND....................... 1,021,444 422,729 MULTIMANAGER TECHNOLOGY...................... 706,969 906,502 FSA-74 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 4. Purchases and Sales of Portfolios (Concluded) PURCHASES SALES --------- -------- TARGET 2015 ALLOCATION............................ $508,721 $876,431 TARGET 2025 ALLOCATION............................ 538,194 456,719 TARGET 2035 ALLOCATION............................ 492,584 426,124 TARGET 2045 ALLOCATION............................ 401,348 237,823 TARGET 2055 ALLOCATION............................ 34,909 106 5. Related Party Transactions In Separate Account No. 66, 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 in are categorized by the share class of the Portfolio. All share classes issued by the Trusts are subject to fees for investment management and advisory services and other Portfolio expenses and are subject to distribution fees imposed under a distribution plan (herein the "Rule 12b-1 Plans") approved by EQAT and VIP Trusts' Board of Trustees and adopted by the applicable Trust. The Rule 12b-1 Plans provide that the Trusts, on behalf of each related Variable 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 respect of activities primarily intended to result in the sale of the respective shares. The class-specific expenses attributable to the investment in each share class of the Portfolios in which the Variable Investment Option invest are borne by the specific unit classes of the Variable Investment Options to which the investments are attributable. These fees are reflected in the net asset value of the shares of the Portfolios and the total returns of the Variable Investment Options, but are not included in the expenses or expense ratios of the Variable Investment Options. AXA Equitable Funds Management Group, LLC ("FMG LLC"), a wholly-owned subsidiary of AXA Equitable serves as investment manager of the Portfolios of the Trusts. FMG LLC receives management fees for services performed in its capacity as investment manager of the Portfolios. FMG LLC either oversees the activities of the investment advisors with respect to the Portfolios, and is responsible for retaining or discontinuing the services of those advisors, or are directly managing the Portfolios. Expenses of the Portfolios of the Trusts generally vary, depending on net asset levels for individual Portfolios, and range from a low annual rate of 0.14% to a high of 1.31% of the average daily net assets of the Portfolios of the Trusts. AXA Equitable, as investment manager of the Trusts, pays expenses for providing investment advisory services to the respective Portfolios, including the fees to the Advisors of each Portfolio. In addition, AXA Advisors, LLC ("AXA Advisors") and AXA Distributors, LLC, affiliates of AXA Equitable, may also receive distribution fees under Rule 12b-1 Plans as described above. 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, but are not included in the expenses or expense ratios of the Variable Investment Options. AllianceBernstein L.P. ("AllianceBernstein") serves as an investment advisor for the AXA/AB Small Cap Growth; EQ/Equity 500 Index; EQ/International Equity Index; EQ/Large Cap Growth Index; EQ/Small Company Index and Separate Accounts No. 10, 4 and 3; as well as a portion of AXA Large Cap Value Managed Volatility and EQ/Quality Bond PLUS. AllianceBernstein is a publicly traded limited partnership which is indirectly majority-owned by AXA Equitable and AXA Financial, Inc. (parent of AXA Equitable). AXA Advisors, LLC is an affiliate of AXA Equitable, and a distributor and principal underwriter of the policies ("Contracts"). AXA Advisors is registered with the Securities and Exchange Commission ("SEC") as a broker-dealer and is a member of the Financial Industry Regulatory Authority ("FINRA"). 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 (affiliates of AXA Equitable). AXA Advisors receives commissions and other service-related payments under its distribution agreement with AXA Equitable and its networking agreement with AXA Network. In addition to using brokers and dealers to execute portfolio security transactions for accounts under their management, AXA Equitable, AllianceBernstein, and AXA Advisors may also enter into other types of business and securities transactions with brokers and dealers, which will be unrelated to allocation of the AXA Equitable Funds' portfolio transactions. AXA Equitable serves as the transfer agent for EQAT and VIP. 6. Reorganizations In 2014, several fund reorganizations occurred within EQAT and VIP. The corresponding reorganizations occurred within the Variable Investment Options of the Account. The purpose of the reorganizations was to combine or substitute, via tax free exchanges, two Variable Investment Options managed by AXA Equitable with comparable investment objectives. FSA-75 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 6. Reorganizations (Concluded) In June 2014, pursuant to a Plan of Reorganization and Termination, mergers were approved by shareholders, whereby certain Portfolios of EQAT and VIP (the "Removed Portfolios") exchanged substantially all of their assets and liabilities for interests in certain other Portfolios of EQAT and VIP (the "Surviving Portfolios"). Correspondingly, the Variable Investment Options that invested in the Removed Portfolios (the "Removed Investment Options") were replaced with the Variable Investment Options that invest in the Surviving Portfolios (the "Surviving Investment Options"). For accounting purposes, reorganizations which occurred in 2014 were treated as mergers.
---------------------------------------------------------------------------- REMOVED PORTFOLIO SURVIVING PORTFOLIO ---------------------------------------------------------------------------- JUNE 20, 2014 EQ/EQUITY GROWTH PLUS AXA LARGE CAP GROWTH MANAGED VOLATILITY ---------------------------------------------------------------------------- Shares -- Class B 4 1,226 Value -- Class B $21.71 $ 25.54 Net Assets Before Merger $ 80 $31,236 Net Assets After Merger $ -- $31,316 Unrealized Gain $ 2 ----------------------------------------------------------------------------
7. Contractowner Charges Charges and fees relating to the Portfolios are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Portfolios. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value. RIA Charges and fees relating to the Portfolios are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts which participate in the Portfolios. Depending upon the terms of a contract, sales-related fees and operating expenses are paid by the contract holders (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value from contractowners. Fees with respect to the Retirement Investment Account (RIA) contracts are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.50% of the net assets attributable to RIA units is assessed for the AllianceBernstein Balanced Fund, and AllianceBernstein Mid Cap Growth Fund and an effective annual rate of 0.08% for the AllianceBernstein Common Stock Fund. This fee is reflected as a reduction in RIA unit value. ADMINISTRATIVE FEES: Contracts investing in the Portfolios are subject to certain administrative expenses according to contract terms. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Portfolio units or (ii) reduction in unit value. These fees may include: Ongoing Operations Fee -- An expense charge is made based on the combined net balances of each fund. Depending upon when the employer adopted RIA, the monthly rate ranges from 1/12 of 1.25% to 1/12 of 0.50% or from 1/12 of 1.25% to 1/12 of 0.25%. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Participant Recordkeeping Services Charge -- Employers electing RIA's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. Depending upon the terms of a contract, fees are paid (i) by a reduction of an appropriate number of Fund units or (ii) reduction in unit value. Contingent Withdrawal Charge -- Certain withdrawals are subject to defined contingent withdrawal charges. The maximum charge is 6.00% of the total plan assets withdrawn and is deducted as a liquidation of Portfolio units. Loan Fee -- A loan fee equal to 1.00% of the amount withdrawn as loan principal is deducted on the date the plan loan is made. OPERATING AND EXPENSE CHARGES: In addition to the charges and fees mentioned above, Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. These charges and fees are reflected as reductions of unit value. FSA-76 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 7. Contractowner Charges (Continued) MRP Charges and fees relating to the Portfolios paid to AXA Equitable are deducted in accordance with the terms of the various contracts which participate in the Portfolios. With respect to the Members Retirement Program these expenses consist of investment management, program expense charge, direct expenses, and record maintenance. These charges and fees are paid to AXA Equitable. Fees with respect to the Members Retirement Program contracts are as follows: . Program Expense Charge -- AXA Equitable assesses a Program expense charge on a monthly basis, which is charged against accounts in the plans that invest in the Separate Accounts. AXA Equitable determines the Program expense charge for each plan on the last day of each month, based on two factors: (1) the average account value of the accounts in the plan, and (2) the value of the total plan assets invested in the Members Retirement Program by the plan, on that date. The Program expense charge is applied to all assets in the plan. All participants in a plan pay the Program expense charge at the same percentage rate, regardless of individual account value. If the Average account value under the Plan is $75,000 or less, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.80% of the next $250,000 and (iii) 0.65% of the excess over $500,000. If the Average account value under the Plan is more than $75,000, then the Program expense charge will be (i) 1% of the first $250,000, (ii) 0.70% of the next $250,000 and (iii) 0.55% of the excess over $500,000. . Investment Management Fees -- An expense charge is made daily at an effective annual rate of 0.50% of the net assets of the AllianceBernstein Balanced Fund and an effective annual rate of 0.30% for the AllianceBernstein Growth Equity Fund and an effective annual rate of 0.65% for the AllianceBernstein Mid Cap Growth Fund. This fee is reflected as a reduction in MRP unit value. . Direct Operating and Other Expenses -- In addition to the charges and fees mentioned above, the Funds are charged for certain costs and expenses directly related to their operations. These may include transfer taxes, SEC filing fees and certain related expenses including printing of SEC filings, prospectuses and reports. This fee is reflected as a reduction in MRP unit value. . A record maintenance and report fee of $3.75 per participant is deducted quarterly as a liquidation of fund units. EPP Charges and fees relating to the Funds are paid to AXA Equitable and are deducted in accordance with the terms of the various contracts, which participate in the Funds. Depending upon the terms of a contract, sales-related fees and operating expenses are paid (i) by a reduction of an appropriate number of Fund Units or (ii) reduction in unit value. Fees with respect to the Equi-Pen-Plus Master Plan and Retirement Trust are as follows: INVESTMENT MANAGEMENT FEE: An annual rate of 0.25% of the total plan and trust net assets is deducted daily for the AllianceBernstein Balanced Fund and an annual rate of 0.08% for the AllianceBernstein Common Stock Fund. This fee is reflected as reduction in EPP unit value. ADMINISTRATIVE FEES: Ongoing Operations Fee -- An expense charge is made based on each client's combined balance of Master Plan and Trust net assets in the Funds and AXA Equitable's Fixed Income Accounts at a monthly rate of 1/12 of (i) 1% of the first $500,000, (ii) 0.75% of the next $500,000 and (iii) 0.50% of the excess over $1,000,000. The ongoing operations fee is generally paid via a liquidation of units held in the fund. Participant Recordkeeping Services Charge -- Employers electing Equi-Pen-Plus's optional Participant Recordkeeping Services are subject to an annual charge of $25 per employee-participant under the employer plan. The participant recordkeeping service charge is generally paid via a liquidation of units held in the fund. Withdrawal Charge -- A charge is applied if the client terminates plan participation in the Master Retirement Trust ("Master Trust") and if the client transfers assets to another funding agency before the fifth anniversary of the date AXA Equitable accepts the participation agreement. The redemption charge is generally paid via a liquidation of units held in the fund and will be based on the following schedule: FOR TERMINATION OCCURRING IN: WITHDRAWAL CHARGE: ----------------------------- ------------------------------ Years 1 and 2.......... 3% of all Master Trust assets Years 3 and 4.......... 2% of all Master Trust assets Year 5................. 1% of all Master Trust assets After Year 5........... No Withdrawal Charge FSA-77 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 7. Contractowner Charges (Concluded) OPERATING AND EXPENSE CHARGES: In addition to the charges and fees mentioned above, Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These may include custody, audit and printing of reports. These charges and fees are reflected as reduction of unit value. INSTITUTIONAL ASSET MANAGEMENT FEES Asset management fees are charged to clients investing in the Separate Accounts. The fees are based on the prior month-end net asset value (as defined) of each client's aggregate interest in AXA Equitable's Separate Accounts, and are determined monthly. The fees are calculated for each client in accordance with the schedule set forth below for the Balanced Account and the Mid Cap Growth Stock Account: EACH CLIENT'S AGGREGATE INTEREST ANNUAL RATE -------------------------------- ------------------------------------- Minimum Fee........................... $5,000 First $2 million...................... 0.85 of 1% Next $3 million....................... 0.60 of 1% Next $5 million....................... 0.40 of 1% Next $15 million...................... 0.30 of 1% Next $75 million...................... 0.25 of 1% Excess over $100 million.............. 0.20 of 1% Asset management fees for the Growth Stock Account is an expense charge determined monthly with an effective annual rate of 0.08%. Asset management fees are paid to AXA Equitable. Clients can either pay the fee directly by remittance to the Separate Account or via liquidation of units held in the Separate Accounts. ADMINISTRATIVE FEES Certain client contracts provide for a fee for administrative services to be paid directly to AXA Equitable. This administrative fee is calculated according to the terms of the specific contract and is generally paid via a liquidation of units held in the funds in which the contract invests. The payment of the fee for administrative services has no effect on other Separate Account clients or the unit values of the separate accounts. OPERATING AND EXPENSE CHARGES In addition to the charges and fees mentioned above, the Separate Accounts No. 10, 4, and 3 are charged for certain costs and expenses directly related to their operations. These charges may include custody and audit fees, and result in reduction of Separate Account unit values. Administrative fees paid through a liquidation of units in Separate Account No. 66 are shown in the Statements of Changes in Net Assets as Contract maintenance charges. The aggregate of all other fees are included in Asset-based charges in the Statements of Operations. Asset-based charges including accounting and administration fees. 8. Changes in Units Outstanding Accumulation units issued and redeemed as of December 31, 2015 and December 31, 2014, were (in thousands): SEPARATE ACCOUNTS NO. 10, 4 AND 3:
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND COMMON STOCK FUND MID CAP GROWTH FUND ------------------------ ------------------------- ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ RIA Issued....... -- -- -- -- -- -- Redeemed..... (2) (3) -- -- -- (1) -- -- -- -- -- -- Net Decrease. (2) (3) -- -- -- (1) == == == == == ==
FSA-78 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Continued)
ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND GROWTH EQUITY FUND MID CAP GROWTH FUND ------------------------ ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ MRP Issued........ 23 30 4 8 12 16 Redeemed...... (70) (63) (12) (12) (36) (41) --- --- --- --- --- --- Net Decrease.. (47) (33) (8) (4) (24) (25) === === === === === === ALLIANCEBERNSTEIN ALLIANCEBERNSTEIN BALANCED FUND COMMON STOCK FUND ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 ------------ ------------ ------------ ------------ EPP Issued........ -- -- -- -- Redeemed...... -- -- -- -- --- --- --- --- Net Decrease.. -- -- -- -- === === === === MID CAP GROWTH STOCK BALANCED ACCOUNT GROWTH STOCK ACCOUNT ACCOUNT ------------------------ ------------------------ ------------------------ DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2015 2014 2015 2014 2015 2014 ------------ ------------ ------------ ------------ ------------ ------------ INSTITUTIONAL Issued........ -- -- -- -- -- -- Redeemed...... -- -- -- -- -- -- --- --- --- --- --- --- Net Decrease.. -- -- -- -- -- -- === === === === === ===
Accumulation units issued and redeemed as of December 31, were (in thousands): SEPARATE ACCOUNT NO. 66:
AXA AXA AXA GLOBAL INTERNATIONAL INTERNATIONAL EQUITY CORE VALUE AXA LARGE CAP AXA LARGE CAP AXA LARGE CAP MANAGED MANAGED MANAGED CORE MANAGED GROWTH MANAGED VALUE MANAGED VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY ------------ ------------ ------------ ------------ -------------- ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- -- -- -- -- -- -- -- -- -- 1 Net Redeemed............... -- -- -- (1) -- (1) (1) -- -- -- -- (4) -- -- -- -- -- -- -- -- -- -- -- -- Net Increase /(Decreased).. -- -- -- (1) -- (1) (1) -- -- -- -- (3) == == == == == == == == == == == == AXA MID CAP CHARTER/SM CHARTER/SM/ EQ/BLACKROCK EQ/CALVERT VALUE MANAGED AXA/AB SMALL CAP /MULTI-SECTOR SMALL CAP BASIC VALUE SOCIALLY VOLATILITY GROWTH BOND VALUE EQUITY RESPONSIBLE ------------ ------------ ------------ ------------ -------------- ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- -- -- -- -- -- -- -- -- -- -- Net Redeemed............... -- (1) -- -- -- -- -- (1) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Net Increase /(Decreased).. -- (1) -- -- -- -- -- (1) -- -- -- -- == == == == == == == == == == == ==
FSA-79 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Continued)
EQ/CAPITAL EQ/INTERMEDIATE EQ/JPMORGAN EQ/LARGE CAP GUARDIAN EQ/EQUITY 500 GOVERNMENT EQ/INTERNATIONAL VALUE GROWTH RESEARCH INDEX BOND EQUITY INDEX OPPORTUNITIES INDEX ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- 1 -- -- -- -- -- 1 -- -- -- Net Redeemed............... -- -- -- -- -- -- (1) (1) -- -- -- -- ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. -- -- 1 -- -- -- (1) (1) 1 -- -- -- ==== ==== ==== ==== === === ==== ==== === === === === EQ/MID CAP EQ/MONEY EQ/QUALITY EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER INDEX MARKET BOND PLUS GROWTH STOCK OMEGA GROWTH TECHNOLOGY ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- RIA Net Issued................. -- -- 2 -- -- -- -- -- -- -- -- -- Net Redeemed............... -- -- (2) -- -- -- -- -- -- (1) -- -- ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. -- -- -- -- -- -- -- -- -- (1) -- -- ==== ==== ==== ==== === === ==== ==== === === === === ALL ASSET AXA ALL ASSET ALL ASSET MODERATE AXA AGGRESSIVE AXA CONSERVATIVE CONSERVATIVE- AGGRESSIVE-ALT 25 GROWTH-ALT 20 GROWTH-ALT 15 ALLOCATION ALLOCATION PLUS ALLOCATION ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 4 1 2 8 1 2 29 34 19 26 20 30 Net Redeemed............... -- -- (3) -- -- (2) (22) (28) (22) (49) (13) (53) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. 4 1 (1) 8 1 -- 7 6 (3) (23) 7 (23) ==== ==== ==== ==== === === ==== ==== === === === === AXA AXA LARGE CAP AXA GLOBAL INTERNATIONAL AXA LARGE CAP GROWTH AXA LARGE CAP AXA MID CAP EQUITY MANAGED CORE MANAGED CORE MANAGED MANAGED VALUE MANAGED VALUE MANAGED VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY VOLATILITY ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 10 24 12 20 -- -- 32 59 23 48 16 27 Net Redeemed .............. (24) (38) (47) (48) -- -- (100) (122) (74) (86) (64) (50) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. (14) (14) (35) (28) -- -- (68) (63) (51) (38) (48) (23) ==== ==== ==== ==== === === ==== ==== === === === === AXA EQ/BOSTON EQ/CALVERT AXA MODERATE MODERATE-PLUS AXA/AB SMALL CAP CHARTERSM MULTI- ADVISORS EQUITY SOCIALLY ALLOCATION ALLOCATION GROWTH SECTOR BOND INCOME RESPONSIBLE ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 284 251 37 28 11 20 22 19 17 17 16 27 Net Redeemed .............. (233) (205) (11) (13) (10) (6) (10) (23) (13) (15) (52) (65) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. 51 46 26 15 1 14 12 (4) 4 2 (36) (38) ==== ==== ==== ==== === === ==== ==== === === === === EQ/CAPITAL EQ/GAMCO EQ/INTERMEDIATE GUARDIAN EQ/EQUITY 500 MERGERS AND EQ/GAMCO SMALL GOVERNMENT EQ/INTERNATIONA RESEARCH INDEX ACQUISITIONS COMPANY VALUE BOND EQUITY INDEX ---------------- ------------ -------------- --------------- ------------ ------------ 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................. 16 19 94 204 1 8 15 26 77 63 39 40 Net Redeemed .............. (35) (39) (260) (268) -- (14) (19) (50) (81) (60) (69) (88) ---- ---- ---- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased).. (19) (20) (166) (64) 1 (6) (4) (24) (4) 3 (30) (48) ==== ==== ==== ==== === === ==== ==== === === === ===
FSA-80 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 8. Changes in Units Outstanding (Concluded)
EQ/MFS EQ/MORGAN EQ/LARGE CAP INTERNATIONAL EQ/MID CAP EQ/MONEY STANLEY GROWTH INDEX GROWTH INDEX MARKET MID CAP GROWTH ----------- ------------ --------------- ------------- ------------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 33 26 10 11 14 28 813 730 5 9 Net Redeemed.............. (18) (16) (16) (3) (5) (11) (825) (751) (6) -- --- --- --- ---- --- --- ---- ---- --- --- Net Increase /(Decreased). 15 10 (6) 8 9 17 (12) (21) (1) 9 === === === ==== === === ==== ==== === === EQ/PIMCO ULTRA EQ/SMALL EQ/T. ROWE PRICE EQ/WELLS FARGO MULTIMANAGER MULTIMANAGER SHORT BOND COMPANY INDEX GROWTH STOCK OMEGA GROWTH CORE BOND TECHNOLOGY ----------- ------------ --------------- ------------- ------------- ----------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 27 64 15 25 17 22 7 18 97 49 15 55 Net Redeemed.............. (59) (88) (43) (59) (19) (6) (8) (21) (41) (25) (31) (42) --- --- --- ---- --- --- ---- ---- --- --- --- --- Net Increase /(Decreased). (32) (24) (28) (34) (2) 16 (1) (3) 56 24 (16) 13 === === === ==== === === ==== ==== === === === === TARGET 2015 TARGET 2025 TARGET 2035 TARGET 2045 TARGET 2055 ALLOCATION ALLOCATION ALLOCATION ALLOCATION ALLOCATION ----------- ------------ --------------- ------------- ------------- 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- MRP Net Issued................ 38 63 39 104 36 42 29 26 4 -- Net Redeemed.............. (74) (52) (38) (100) (34) (22) (19) (16) -- -- --- --- --- ---- --- --- ---- ---- --- --- Net Increase /(Decreased). (36) 11 1 4 2 20 10 10 4 -- === === === ==== === === ==== ==== === ===
The -- on the Changes in Units section may represent no units issued and units redeemed or units issued and units redeemed of less than 500. 9. Financial Highlights AXA Equitable issues a number of registered group annuity contracts that allow employer plan assets to accumulate on a tax-deferred basis. The contracts are typically designed for employers wishing to fund defined benefit, defined contribution and/or 401(k) plans. Annuity contracts available through AXA Equitable are the Retirement Investment Account ("RIA"), Members Retirement Program ("MRP"), and Equi-Pen-Plus ("EPP") (collectively, the Plans). Assets of the Plans are invested in a number of investment Funds (available Funds vary by Plan). Institutional units presented on the Statement of Assets and Liabilities reflect investments in the Funds by clients other than contractowners of group annuity contracts issued by AXA Equitable. Institutional unit values are determined at the end of each business day. Institutional unit values reflect the investment performance of the Funds for the day and charges and expenses deducted by the Funds. Contract unit values (RIA, MRP, and EPP) reflect the same investment results, prior to deduction for contract specific charges, earned by the Institutional units. Contract unit values reflect certain investment management and accounting fees, which vary by contract. These fees are charged as a percentage of net assets and are disclosed below for the Plans contracts as percentage of net assets attributable of such units. Shown below is accumulation unit value information for units outstanding of Separate Accounts No. 10, 4, 3 and 66 for the periods indicated.
YEARS ENDED DECEMBER 31, ------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ------- ----------- ------------ -------- -------- SEPARATE ACCOUNT NO. 10 ALLIANCEBERNSTEIN BALANCED FUND December 31, 2015 RIA*- contract charge 0.50% (a) $293.64 7 $2,013 0.06% 0.63% December 31, 2014 RIA*- contract charge 0.50% (a) $293.46 9 $2,606 4.40% 0.61% December 31, 2013 RIA*- contract charge 0.50% (a) $281.10 12 $3,355 15.97% 0.71% December 31, 2012 RIA*- contract charge 0.50% (a) $242.40 13 $3,210 13.06% 0.71% December 31, 2011 RIA*- contract charge 0.50% (a) $214.40 15 $3,310 (0.49)% 0.63%
FSA-81 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ---------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ---------- ----------- ------------ -------- -------- December 31, 2015 MRP*- contract charge 0.50% (a) $ 70.27 351 $24,698 0.06% 0.64% December 31, 2014 MRP*- contract charge 0.50% (a) $ 70.23 398 $27,987 4.38% 0.61% December 31, 2013 MRP*- contract charge 0.50% (a) $ 67.28 431 $28,986 15.96% 0.71% December 31, 2012 MRP*- contract charge 0.50% (a) $ 58.02 481 $27,916 13.06% 0.71% December 31, 2011 MRP*- contract charge 0.50% (a) $ 51.32 479 $24,589 (0.50)% 0.63% December 31, 2015 EPP*- contract charge 0.25% (a) $ 309.98 1 $ 190 0.31% 0.39% December 31, 2014 EPP*- contract charge 0.25% (a) $ 309.01 1 $ 197 4.66% 0.36% December 31, 2013 EPP*- contract charge 0.25% (a) $ 295.26 1 $ 233 16.25% 0.46% December 31, 2012 EPP*- contract charge 0.25% (a) $ 253.98 1 $ 185 13.35% 0.46% December 31, 2011 EPP*- contract charge 0.25% (a) $ 224.07 2 $ 408 (0.24)% 0.38% BALANCED ACCOUNT December 31, 2015 Institutional $32,725.90 --(c) $ 24 0.57% 0.14% December 31, 2014 Institutional $32,541.85 --(c) $ 24 4.92% 0.21% December 31, 2013 Institutional $31,015.57 --(c) $ 24 16.55% 0.21% December 31, 2012 Institutional $26,612.24 --(c) $ 2,800 13.66% 0.21% December 31, 2011 Institutional $23,414.58 --(c) $ 2,524 (0.02)% 0.13% SEPARATE ACCOUNT NO. 4 ALLIANCEBERNSTEIN COMMON STOCK FUND December 31, 2015 RIA*- contract charge 0.08% (a) $ 1,586.06 2 $ 2,999 5.65% 0.16% December 31, 2014 RIA*- contract charge 0.08% (a) $ 1,501.17 2 $ 3,544 12.86% 0.14% December 31, 2013 RIA*- contract charge 0.08% (a) $ 1,330.14 2 $ 3,290 33.23% 0.20% December 31, 2012 RIA*- contract charge 0.08% (a) $ 998.36 3 $ 3,083 15.86% 0.11% December 31, 2011 RIA*- contract charge 0.08% (a) $ 861.69 4 $ 3,275 3.57% 0.16% December 31, 2015 EPP*- contract charge 0.08% (a) $ 1,645.69 1 $ 1,391 5.65% 0.16% December 31, 2014 EPP*- contract charge 0.08% (a) $ 1,557.61 1 $ 1,570 12.86% 0.14% December 31, 2013 EPP*- contract charge 0.08% (a) $ 1,380.15 1 $ 1,468 33.23% 0.20% December 31, 2012 EPP*- contract charge 0.08% (a) $ 1,035.90 1 $ 1,102 15.86% 0.11% December 31, 2011 EPP*- contract charge 0.08% (a) $ 894.10 3 $ 2,616 3.57% 0.16% ALLIANCEBERNSTEIN GROWTH EQUITY FUND December 31, 2015 MRP*- contract charge 0.30% (a) $ 615.04 57 $34,827 5.16% 0.39% December 31, 2014 MRP*- contract charge 0.30% (a) $ 584.84 65 $37,929 12.60% 0.36% December 31, 2013 MRP*- contract charge 0.30% (a) $ 519.39 69 $35,727 32.93% 0.42% December 31, 2012 MRP*- contract charge 0.30% (a) $ 390.71 77 $30,232 15.60% 0.33% December 31, 2011 MRP*- contract charge 0.30% (a) $ 337.99 80 $27,159 3.34% 0.38% GROWTH STOCK ACCOUNT December 31, 2015 Institutional $17,164.79 3 $43,187 5.74% 0.08% December 31, 2014 Institutional $16,233.13 3 $48,535 12.95% 0.12% December 31, 2013 Institutional $14,372.16 3 $46,675 33.34% 0.12% December 31, 2012 Institutional $10,778.36 4 $40,660 15.95% 0.03% December 31, 2011 Institutional $ 9,295.69 4 $36,625 3.65% 0.08% SEPARATE ACCOUNT NO. 3 ALLIANCEBERNSTEIN MID CAP GROWTH FUND December 31, 2015 RIA*- contract charge 0.50% (a) $ 524.03 3 $ 1,324 1.14% 0.53% December 31, 2014 RIA*- contract charge 0.50% (a) $ 518.14 3 $ 1,771 2.12% 0.53% December 31, 2013 RIA*- contract charge 0.50% (a) $ 507.36 4 $ 1,901 33.41% 0.55% December 31, 2012 RIA*- contract charge 0.50% (a) $ 380.29 4 $ 1,662 13.33% 0.54% December 31, 2011 RIA*- contract charge 0.50% (a) $ 335.56 7 $ 2,278 2.63% 0.58% December 31, 2015 MRP*- contract charge 0.65% (a) $ 106.93 197 $21,078 0.97% 0.69% December 31, 2014 MRP*- contract charge 0.65% (a) $ 105.90 221 $23,410 1.96% 0.68% December 31, 2013 MRP*- contract charge 0.65% (a) $ 103.86 246 $25,600 33.22% 0.70% December 31, 2012 MRP*- contract charge 0.65% (a) $ 77.96 274 $21,387 13.17% 0.69% December 31, 2011 MRP*- contract charge 0.65% (a) $ 68.89 288 $19,852 2.48% 0.73%
FSA-82 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ---------------------------------------------------- UNITS ACCUMULATION UNIT OUTSTANDING UNIT VALUE TOTAL EXPENSE VALUE (000'S) (000'S) RETURN** RATIO*** ---------- ----------- ------------ -------- -------- MID CAP GROWTH STOCK ACCOUNT December 31, 2015 Institutional $58,395.05 --(c) $806 1.65% 0.04% December 31, 2014 Institutional $57,449.35 --(c) $827 2.64% 0.05% December 31, 2013 Institutional $55,973.12 --(c) $778 34.08% 0.05% December 31, 2012 Institutional $41,745.15 --(c) $634 13.90% 0.04% December 31, 2011 Institutional $36,649.94 --(c) $550 3.14% 0.08%
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- SEPARATE ACCOUNT NO. 66+ ALL ASSET AGGRESSIVE-ALT 25 2015........ MRP*, 0.02% (a) $ 11.58 6 $ 75 1.64% (4.38)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.11 2 $ 22 1.99% 2.28% 0.02% 2013........ MRP*, 0.03% (a) $ 11.84 1 $ 9 2.89% 18.05% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.03 --(c) $ 2 -- 6.03% 0.01% ALL ASSET GROWTH-ALT 20 2015........ MRP*, 0.02% (a) $ 11.27 7 $ 75 0.62% (3.92)% 0.02% 2014........ MRP*, 0.02% (a) $ 11.73 8 $ 94 4.25% 2.36% 0.02% 2013........ MRP*, 0.03% (a) $ 11.46 --(c) $ 1 0.02% 14.03% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.05 6 $ 63 4.76% 5.13% 0.01% ALL ASSET MODERATE GROWTH-ALT 15 (B) 2015........ MRP*, 0.02% (a) $ 10.97 1 $ 7 1.06% (3.77)% 0.02% 2014........ MRP*, 0.02% (a) $ 11.40 --(c) $ 4 0.62% 2.43% 0.02% 2013........ MRP*, 0.03% (a) $ 11.13 --(c) $ 2 5.56% 11.08% 0.03% AXA AGGRESSIVE ALLOCATION 2015........ MRP*, 0.02% (a) $ 11.91 216 $2,569 0.98% (1.81)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.13 209 $2,535 1.61% 4.75% 0.02% 2013........ MRP*, 0.03% (a) $ 11.58 203 $2,355 2.62% 26.42% 0.03% 2012........ MRP*, 0.01% (a) $ 9.16 192 $1,757 0.80% 14.07% 0.01% 2011........ MRP*, 0.01% (a) $ 8.03 243 $1,947 1.37% (7.49)% 0.01% AXA CONSERVATIVE ALLOCATION 2015........ MRP*, 0.02% (a) $ 12.12 105 $1,273 0.77% (0.25)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.15 108 $1,307 0.77% 2.62% 0.02% 2013........ MRP*, 0.03% (a) $ 11.84 131 $1,546 0.91% 4.32% 0.03% 2012........ MRP*, 0.01% (a) $ 11.35 157 $1,778 0.77% 4.51% 0.01% 2011........ MRP*, 0.01% (a) $ 10.86 147 $1,595 2.19% 1.88% 0.01% AXA CONSERVATIVE-PLUS ALLOCATION 2015........ MRP*, 0.02% (a) $ 12.22 88 $1,077 0.88% (0.73)% 0.02% 2014........ MRP*, 0.02% (a) $ 12.31 81 $ 998 0.94% 3.19% 0.02% 2013........ MRP*, 0.03% (a) $ 11.93 104 $1,238 1.32% 10.16% 0.03% 2012........ MRP*, 0.01% (a) $ 10.83 81 $ 876 0.95% 7.44% 0.01% 2011........ MRP*, 0.01% (a) $ 10.08 66 $ 665 1.44% (0.79)% 0.01% AXA GLOBAL EQUITY MANAGED VOLATILITY 2015........ RIA*, 0.00% (a) $510.99 --(c) $ 100 0.85% (1.73)% 0.00% MRP*, 0.02% (a) $ 14.36 105 $1,506 0.85% (1.71)% 0.02% 2014........ RIA*, 0.00% (a) $519.96 --(c) $ 112 0.94% 1.69% 0.00% MRP*, 0.02% (a) $ 14.61 119 $1,732 0.94% 1.67% 0.02% 2013........ RIA*, 0.00% (a) $511.33 --(c) $ 213 0.75% 20.36% 0.00% MRP*, 0.03% (a) $ 14.37 133 $1,913 0.75% 20.25% 0.03% 2012........ RIA*, 0.00% (a) $424.84 --(c) $ 210 1.45% 16.98% 0.00% MRP*, 0.01% (a) $ 11.95 161 $1,923 1.45% 17.04% 0.01% 2011........ RIA*, 0.00% (a) $363.17 1 $ 241 1.71% (12.31)% 0.00% MRP*, 0.01% (a) $ 10.21 158 $1,612 1.71% (12.36)% 0.01%
FSA-83 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- AXA INTERNATIONAL CORE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $140.77 --(c) $ 8 0.06% (4.34)% 0.00% MRP*, 0.02% (a) $ 12.65 146 $1,847 0.06% (4.31)% 0.02% 2014............ RIA*, 0.00% (a) $147.16 --(c) $ 8 1.23% (6.24)% 0.00% MRP*, 0.02% (a) $ 13.22 181 $2,390 1.23% (6.24)% 0.02% 2013............ RIA*, 0.00% (a) $156.95 1 $ 90 0.83% 17.52% 0.00% MRP*, 0.03% (a) $ 14.10 209 $2,949 0.83% 17.40% 0.03% 2012............ RIA*, 0.00% (a) $133.55 1 $ 93 1.47% 16.31% 0.00% MRP*, 0.01% (a) $ 12.01 230 $2,763 1.47% 16.38% 0.01% 2011............ RIA*, 0.00% (a) $114.82 1 $ 100 2.64% (16.93)% 0.00% MRP*, 0.01% (a) $ 10.32 239 $2,469 2.64% (16.98)% 0.01% AXA INTERNATIONAL VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $155.32 --(c) $ 51 0.10% (3.16)% 0.00% 2014............ RIA*, 0.00% (a) $160.39 --(c) $ 52 1.11% (7.18)% 0.00% 2013............ RIA*, 0.00% (a) $172.79 1 $ 140 1.44% 19.33% 0.00% 2012............ RIA*, 0.00% (a) $144.80 1 $ 80 1.83% 17.47% 0.00% 2011............ RIA*, 0.00% (a) $123.27 1 $ 76 2.18% (16.17)% 0.00% AXA LARGE CAP CORE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $172.57 --(c) $ -- 0.00% 0.37% 0.00% 2014............ RIA*, 0.00% (a) $171.93 1 $ 89 0.96% 11.62% 0.00% 2013............ RIA*, 0.00% (a) $154.03 1 $ 81 0.52% 31.56% 0.00% 2012............ RIA*, 0.00% (a) $117.08 1 $ 61 1.19% 14.99% 0.00% 2011............ RIA*, 0.00% (a) $101.82 --(c) $ 50 0.59% (4.24)% 0.00% AXA LARGE CAP GROWTH MANAGED VOLATILITY (D) 2015............ RIA*, 0.00% (a) $243.24 --(c) $ 30 0.27% 4.04% 0.00% MRP*, 0.02% (a) $ 10.14 325 $3,295 0.27% 4.00% 0.02% 2014............ RIA*, 0.00% (a) $233.80 --(c) $ 31 0.19% 11.08% 0.00% MRP*, 0.02% (a) $ 9.75 393 $3,829 0.19% 11.05% 0.02% 2013............ RIA*, 0.00% (a) $210.47 --(c) $ 31 0.16% 35.39% 0.00% MRP*, 0.03% (a) $ 8.78 456 $4,002 0.16% 35.29% 0.03% 2012............ RIA*, 0.00% (a) $155.46 --(c) $ 24 0.56% 13.74% 0.00% MRP*, 0.01% (a) $ 6.49 593 $3,845 0.56% 13.86% 0.01% 2011............ RIA*, 0.00% (a) $136.68 --(c) $ 28 0.40% (3.66)% 0.00% MRP*, 0.01% (a) $ 5.70 639 $3,642 0.40% (3.72)% 0.01% AXA LARGE CAP VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $185.40 4 $ 715 1.57% (4.01)% 0.00% MRP*, 0.02% (a) $ 17.21 472 $8,120 1.57% (4.07)% 0.02% 2014............ RIA*, 0.00% (a) $193.15 4 $ 836 1.33% 12.23% 0.00% MRP*, 0.02% (a) $ 17.94 523 $9,377 1.33% 12.20% 0.02% 2013............ RIA*, 0.00% (a) $172.10 7 $1,272 1.04% 32.47% 0.00% MRP*, 0.03% (a) $ 15.99 561 $8,974 1.04% 32.48% 0.03% 2012............ RIA*, 0.00% (a) $129.92 8 $1,047 1.64% 15.87% 0.00% MRP*, 0.01% (a) $ 12.07 615 $7,423 1.64% 15.83% 0.01% 2011............ RIA*, 0.00% (a) $112.13 8 $ 881 1.17% (4.81)% 0.00% MRP*, 0.01% (a) $ 10.42 605 $6,304 1.17% (5.10)% 0.01% AXA MID CAP VALUE MANAGED VOLATILITY 2015............ RIA*, 0.00% (a) $296.77 --(c) $ 133 0.73% (3.54)% 0.00% MRP*, 0.02% (a) $ 23.39 324 $7,567 0.73% (3.55)% 0.02% 2014............ RIA*, 0.00% (a) $307.66 --(c) $ 140 0.58% 10.87% 0.00% MRP*, 0.02% (a) $ 24.25 372 $9,018 0.58% 10.83% 0.02% 2013............ RIA*, 0.00% (a) $277.49 1 $ 224 0.51% 33.08% 0.00% MRP*, 0.03% (a) $ 21.88 395 $8,647 0.51% 33.09% 0.03% 2012............ RIA*, 0.00% (a) $208.52 1 $ 167 1.25% 18.63% 0.00% MRP*, 0.01% (a) $ 16.44 439 $7,214 1.25% 18.61% 0.01% 2011............ RIA*, 0.00% (a) $175.78 1 $ 182 0.85% (9.43)% 0.00% MRP*, 0.01% (a) $ 13.86 454 $6,286 0.85% (9.47)% 0.01%
FSA-84 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- AXA MODERATE ALLOCATION 2015..... MRP*, 0.02% (a) $ 11.98 1,583 $18,961 0.84% (0.91)% 0.02% 2014..... MRP*, 0.02% (a) $ 12.09 1,532 $18,515 1.12% 3.07% 0.02% 2013..... MRP*, 0.03% (a) $ 11.73 1,486 $17,439 1.69% 13.01% 0.03% 2012..... MRP*, 0.01% (a) $ 10.38 1,377 $14,285 0.85% 8.81% 0.01% 2011..... MRP*, 0.01% (a) $ 9.54 1,229 $11,720 1.62% (2.35)% 0.01% AXA MODERATE-PLUS ALLOCATION 2015..... MRP*, 0.02% (a) $ 12.04 129 $ 1,553 1.02% (1.31)% 0.02% 2014..... MRP*, 0.02% (a) $ 12.20 103 $ 1,255 1.45% 3.74% 0.02% 2013..... MRP*, 0.03% (a) $ 11.76 88 $ 1,030 2.15% 19.76% 0.03% 2012..... MRP*, 0.01% (a) $ 9.82 78 $ 765 0.86% 11.59% 0.01% 2011..... MRP*, 0.01% (a) $ 8.80 160 $ 1,405 1.38% (4.97)% 0.01% AXA/AB SMALL CAP GROWTH 2015..... RIA*, 0.05% (a) $357.31 1 $ 184 0.04% (2.96)% 0.05% MRP*, 0.02% (a) $ 13.94 27 $ 373 0.04% (2.92)% 0.02% 2014..... RIA*, 0.05% (a) $368.20 1 $ 274 0.06% 3.52% 0.05% MRP*, 0.02% (a) $ 14.36 26 $ 381 0.06% 3.53% 0.02% 2013..... RIA*, 0.05% (a) $355.67 1 $ 415 0.06% 38.10% 0.05% MRP*, 0.03% (a) $ 13.87 12 $ 170 0.06% 38.15% 0.03% 2012..... RIA*, 0.05% (a) $257.54 1 $ 316 0.20% 15.53% 0.05% MRP*, 0.01% (a)(b) $ 10.04 --(c) $ -- 0.20% 8.89% 0.01% 2011..... RIA*, 0.05% (a) $222.92 1 $ 311 -- (0.45)% 0.05% CHARTER/SM/ MULTI-SECTOR BOND 2015..... RIA*, 0.05% (a) $223.13 --(c) $ -- 1.74% (0.69)% 0.05% MRP*, 0.02% (a) $ 10.07 92 $ 929 1.74% (0.59)% 0.02% 2014..... RIA*, 0.05% (a) $224.68 --(c) $ 1 2.53% 2.34% 0.05% MRP*, 0.02% (a) $ 10.13 80 $ 815 2.53% 2.32% 0.02% 2013..... RIA*, 0.05% (a) $219.55 --(c) $ 2 2.90% (1.06)% 0.05% MRP*, 0.03% (a) $ 9.90 84 $ 829 2.90% (0.90)% 0.03% 2012..... RIA*, 0.05% (a) $221.90 --(c) $ 2 2.15% 5.28% 0.05% MRP*, 0.01% (a) $ 9.99 127 $ 1,265 2.15% 5.27% 0.01% 2011..... RIA*, 0.05% (a) $210.78 --(c) $ 4 4.59% 5.28% 0.05% MRP*, 0.01% (a) $ 9.49 115 $ 1,090 4.59% 5.09% 0.01% CHARTER/SM/ SMALL CAP VALUE 2015..... RIA*, 0.00% (a) $252.31 --(c) $ 59 0.40% (13.13)% 0.00% 2014..... RIA*, 0.00% (a) $290.46 --(c) $ 116 0.12% (5.11)% 0.00% 2013..... RIA*, 0.00% (a) $306.09 1 $ 209 0.56% 42.72% 0.00% 2012..... RIA*, 0.00% (a) $214.47 1 $ 147 0.56% 16.77% 0.00% 2011..... RIA*, 0.00% (a) $183.67 1 $ 138 0.10% (9.02)% 0.00% EQ/BLACKROCK BASIC VALUE EQUITY 2015..... RIA*, 0.00% (a) $332.63 --(c) $ 78 1.26% (6.15)% 0.00% 2014..... RIA*, 0.00% (a) $354.42 --(c) $ 91 1.08% 9.70% 0.00% 2013..... RIA*, 0.00% (a) $323.07 --(c) $ 87 2.43% 33.73% 0.00% 2012..... RIA*, 0.00% (a) $234.57 --(c) $ 27 0.89% 13.64% 0.00% 2011..... RIA*, 0.00% (a) $206.42 1 $ 112 1.42% (3.11)% 0.00% EQ/BOSTON ADVISORS EQUITY INCOME 2015..... MRP*, 0.02% (a) $ 14.04 24 $ 333 1.74% (1.75)% 0.02% 2014..... MRP*, 0.02% (a) $ 14.29 20 $ 292 1.78% 8.67% 0.02% 2013..... MRP*, 0.03% (a) $ 13.15 18 $ 237 1.90% 31.76% 0.03% 2012..... MRP*, 0.01% (a)(b) $ 9.98 8 $ 84 4.90% 6.74% 0.01%
FSA-85 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------ UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/CALVERT SOCIALLY RESPONSIBLE 2015...... RIA*, 0.00% (a) $159.88 --(c) $ -- 0.98% 0.48% 0.00% MRP*, 0.02% (a) $ 13.46 168 $ 2,257 0.98% 0.45% 0.02% 2014...... RIA*, 0.00% (a) $159.12 --(c) $ -- 0.77% 13.61% 0.00% MRP*, 0.02% (a) $ 13.40 204 $ 2,734 0.77% 13.56% 0.02% 2013...... RIA*, 0.00% (a) $140.06 --(c) -- 0.73% 34.34% 0.00% MRP*, 0.03% (a) $ 11.80 242 $ 2,859 0.73% 34.24% 0.03% 2012...... RIA*, 0.00% (a) $104.26 --(c) -- 1.03% 16.74% 0.00% MRP*, 0.01% (a) $ 8.79 275 $ 2,417 1.03% 16.73% 0.01% 2011...... RIA*, 0.00% (a) $ 89.31 --(c) -- 0.38% 0.27% 0.00% MRP*, 0.01% (a) $ 7.53 251 $ 1,889 0.38% 0.27% 0.01% EQ/CAPITAL GUARDIAN RESEARCH 2015...... RIA*, 0.00% (a) $241.50 --(c) $ 61 0.56% 1.91% 0.00% MRP*, 0.02% (a) $ 29.72 240 $ 7,120 0.56% 1.89% 0.02% 2014...... RIA*, 0.00% (a) $236.97 --(c) $ 63 0.71% 10.51% 0.00% MRP*, 0.02% (a) $ 29.17 259 $ 7,569 0.71% 10.49% 0.02% 2013...... RIA*, 0.00% (a) $214.43 --(c) $ 55 1.33% 31.77% 0.00% MRP*, 0.03% (a) $ 26.40 279 $ 7,370 1.33% 31.74% 0.03% 2012...... RIA*, 0.00% (a) $162.73 --(c) $ 39 0.92% 17.40% 0.00% MRP*, 0.01% (a) $ 20.04 329 $ 6,600 0.92% 17.40% 0.01% 2011...... RIA*, 0.00% (a) $138.61 --(c) $ 44 0.73% 4.01% 0.00% MRP*, 0.01% (a) $ 17.07 341 $ 5,826 0.73% 3.96% 0.01% EQ/EQUITY 500 INDEX 2015...... RIA*, 0.05% (a) $611.49 2 $ 933 1.53% 0.75% 0.05% MRP*, 0.02% (a) $ 15.21 1,470 $22,355 1.53% 0.80% 0.02% 2014...... RIA*, 0.05% (a) $606.95 1 $ 892 1.38% 12.92% 0.05% MRP*, 0.02% (a) $ 15.09 1,636 $24,692 1.38% 12.95% 0.02% 2013...... RIA*, 0.05% (a) $537.51 1 $ 756 1.47% 31.45% 0.05% MRP*, 0.03% (a) $ 13.36 1,700 $22,716 1.47% 31.50% 0.03% 2012...... RIA*, 0.05% (a) $408.92 2 $ 679 1.69% 15.18% 0.05% MRP*, 0.01% (a) $ 10.16 1,759 $17,876 1.69% 15.19% 0.01% 2011...... RIA*, 0.05% (a) $355.04 2 $ 881 1.47% 1.71% 0.05% MRP*, 0.01% (a) $ 8.82 1,828 $16,126 1.47% 1.50% 0.01% EQ/GAMCO MERGERS AND ACQUISITIONS 2015...... MRP*, 0.02% (a) $ 11.73 11 $ 129 -- 2.62% 0.02% 2014...... MRP*, 0.02% (a) $ 11.43 10 $ 115 -- 1.60% 0.02% 2013...... MRP*, 0.03% (a) $ 11.25 16 $ 179 0.95% 10.95% 0.03% 2012...... MRP*, 0.01% (a)(b) $ 10.14 --(c) $ -- -- 3.26% 0.01% EQ/GAMCO SMALL COMPANY VALUE 2015...... MRP*, 0.02% (a) $ 23.29 120 $ 2,785 0.53% (5.71)% 0.02% 2014...... MRP*, 0.02% (a) $ 24.70 124 $ 3,062 0.25% 3.05% 0.02% 2013...... MRP*, 0.03% (a) $ 23.97 148 $ 3,544 0.27% 39.04% 0.03% 2012...... MRP*, 0.01% (a) $ 17.24 182 $ 3,145 1.29% 17.84% 0.01% 2011...... MRP*, 0.01% (a) $ 14.63 181 $ 2,646 0.07% (3.50)% 0.01% EQ/INTERMEDIATE GOVERNMENT BOND 2015...... RIA*, 0.05% (a) $229.02 --(c) $ -- 0.62% 0.38% 0.05% MRP*, 0.02% (a) $ 12.28 320 $ 3,935 0.62% 0.41% 0.02% 2014...... RIA*, 0.05% (a) $228.15 --(c) $ -- 0.41% 1.48% 0.05% MRP*, 0.02% (a) $ 12.23 324 $ 3,958 0.41% 1.49% 0.02% 2013...... RIA*, 0.05% (a) $224.82 --(c) $ 5 0.20% (1.69)% 0.05% MRP*, 0.03% (a) $ 12.05 321 $ 3,867 0.20% (1.71)% 0.03% 2012...... RIA*, 0.05% (a) $228.69 --(c) $ 5 0.26% 0.93% 0.05% MRP*, 0.01% (a) $ 12.26 396 $ 4,856 0.26% 0.99% 0.01% 2011...... RIA*, 0.05% (a) $226.59 --(c) $ 18 0.48% 5.50% 0.05% MRP*, 0.01% (a) $ 12.14 349 $ 4,236 0.48% 5.29% 0.01%
FSA-86 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/INTERNATIONAL EQUITY INDEX 2015........ RIA*, 0.05% (a) $173.74 2 $ 427 2.30% (2.18)% 0.05% MRP*, 0.02% (a) $ 19.55 485 $ 9,472 2.30% (2.15)% 0.02% 2014........ RIA*, 0.05% (a) $177.62 3 $ 468 2.95% (6.95)% 0.05% MRP*, 0.02% (a) $ 19.98 515 $10,286 2.95% (6.90)% 0.02% 2013........ RIA*, 0.05% (a) $190.88 4 $ 698 2.22% 21.41% 0.05% MRP*, 0.03% (a) $ 21.46 563 $12,089 2.22% 21.45% 0.03% 2012........ RIA*, 0.05% (a) $157.22 4 $ 612 3.05% 16.21% 0.05% MRP*, 0.01% (a) $ 17.67 613 $10,826 3.05% 16.25% 0.01% 2011........ RIA*, 0.05% (a) $135.29 4 $ 541 2.99% (12.02)% 0.05% MRP*, 0.01% (a) $ 15.20 656 $ 9,977 2.99% (11.99)% 0.01% EQ/JPMORGAN VALUE OPPORTUNITIES 2015........ RIA*, 0.00% (a) $234.67 1 $ 153 0.86% (2.28)% 0.00% 2014........ RIA*, 0.00% (a) $240.15 --(c) $ 110 1.07% 14.37% 0.00% 2013........ RIA*, 0.00% (a) $209.97 --(c) $ 98 2.04% 35.79% 0.00% 2012........ RIA*, 0.00% (a) $154.63 --(c) $ 73 0.92% 16.05% 0.00% 2011........ RIA*, 0.00% (a) $133.25 1 $ 69 1.45% (5.23)% 0.00% EQ/LARGE CAP GROWTH INDEX 2015........ RIA*, 0.00% (a) $155.74 --(c) $ -- 1.17% 4.86% 0.00% MRP*, 0.02% (a) $ 15.15 34 $ 523 1.17% 4.84% 0.02% 2014........ RIA*, 0.00% (a) $148.52 --(c) $ -- 1.23% 12.24% 0.00% MRP*, 0.02% (a) $ 14.45 19 $ 282 1.23% 12.19% 0.02% 2013........ RIA*, 0.00% (a) $132.32 --(c) $ -- 4.42% 32.48% 0.00% MRP*, 0.03% (a) $ 12.88 9 $ 122 4.42% 32.51% 0.03% 2012........ RIA*, 0.00% (a) $ 99.88 --(c) $ -- 0.51% 14.73% 0.00% MRP*, 0.01% (a)(b) $ 9.72 --(c) $ -- 0.51% 5.19% 0.01% 2011........ RIA*, 0.00% (a) $ 87.06 --(c) $ 3 0.88% 2.36% 0.00% EQ/MFS INTERNATIONAL GROWTH 2015........ MRP*, 0.02% (a) $ 11.25 34 $ 378 0.55% 0.18% 0.02% 2014........ MRP*, 0.02% (a) $ 11.23 40 $ 450 1.01% (5.07)% 0.02% 2013........ MRP*, 0.03% (a) $ 11.83 32 $ 375 1.87% 13.64% 0.03% 2012........ MRP*, 0.01% (a)(b) $ 10.41 3 $ 29 1.75% 7.99% 0.01% EQ/MID CAP INDEX 2015........ RIA*, 0.00% (a) $211.01 --(c) $ 90 1.04% (2.86)% 0.00% MRP*, 0.02% (a) $ 14.40 39 $ 558 1.04% (2.90)% 0.02% 2014........ RIA*, 0.00% (a) $217.22 --(c) $ 38 0.93% 8.99% 0.00% MRP*, 0.02% (a) $ 14.83 30 $ 451 0.93% 8.96% 0.02% 2013........ RIA*, 0.00% (a) $199.30 --(c) $ 32 0.95% 32.58% 0.00% MRP*, 0.03% (a) $ 13.61 13 $ 183 0.95% (32.52)% 0.03% 2012........ RIA*, 0.00% (a) $150.33 --(c) $ 22 1.86% 17.80% 0.00% MRP*, 0.01% (a)(b) $ 16.44 2 $ 24 1.86% 8.11% 0.01% 2011........ RIA*, 0.00% (a) $128.40 --(c) $ 25 0.59% (2.41)% 0.00% EQ/MONEY MARKET 2015........ RIA*, 0.05% (a) $174.88 --(c) $ -- -- (0.05)% 0.05% MRP*, 0.02% (a) $ 9.99 1,383 $13,819 -- 0.00% 0.02% 2014........ RIA*, 0.05% (a) $174.97 --(c) $ 11 -- (0.05)% 0.05% MRP*, 0.02% (a) $ 9.99 1395 $13,939 -- (0.10)% 0.02% 2013........ RIA*, 0.05% (a) $175.05 --(c) $ 31 -- (0.05)% 0.05% MRP*, 0.03% (a) $ 10.00 1,416 $14,149 -- 0.00% 0.03% 2012........ RIA*, 0.05% (a) $175.14 --(c) $ 31 -- (0.05)% 0.05% MRP*, 0.01% (a) $ 10.00 1,584 $15,837 -- 0.00% 0.01% 2011........ RIA*, 0.05% (a) $175.23 --(c) $ 38 0.01% (0.05)% 0.05% MRP*, 0.01% (a) $ 10.00 1447 $14,470 0.01% 0.00% 0.01% EQ/MORGAN STANLEY MID CAP GROWTH (B) 2015........ MRP*, 0.02% (a) $ 13.16 10 $ 133 -- (5.46)% 0.02% 2014........ MRP*, 0.02% (a) $ 13.92 11 $ 150 -- (0.78)% 0.02% 2013........ MRP*, 0.03% (a) $ 14.03 2 $ 33 -- 38.50% 0.03%
FSA-87 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Continued)
YEARS ENDED DECEMBER 31, ------------------------------------------------------------ UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------- ----------- ------------ ---------- -------- -------- EQ/PIMCO ULTRA SHORT BOND 2015.... MRP*, 0.02% (a) $ 11.77 177 $2,079 0.46% (0.25)% 0.02% 2014.... MRP*, 0.02% (a) $ 11.80 209 $2,469 0.35% (0.17)% 0.02% 2013.... MRP*, 0.03% (a) $ 11.82 233 $2,753 0.79% 0.08% 0.03% 2012.... MRP*, 0.01% (a) $ 11.81 207 $2,447 0.56% 1.46% 0.01% 2011.... MRP*, 0.01% (a) $ 11.64 189 $2,203 0.51% (0.17)% 0.01% EQ/QUALITY BOND PLUS 2015.... RIA*, 0.05% (a) $247.26 --(c) $ 7 0.94% 0.17% 0.05% 2014.... RIA*, 0.05% (a) $246.83 --(c) $ 9 0.60% 2.85% 0.05% 2013.... RIA*, 0.05% (a) $239.98 --(c) $ 46 0.37% (2.33)% 0.05% 2012.... RIA*, 0.05% (a) $245.70 --(c) $ 46 0.43% 2.61% 0.05% 2011.... RIA*, 0.05% (a) $239.46 --(c) $ 72 2.09% 1.41% 0.05% EQ/SMALL COMPANY INDEX 2015.... MRP*, 0.02% (a) $ 23.87 184 $4,399 0.84% (4.60)% 0.02% 2014.... MRP*, 0.02% (a) $ 25.02 212 $5,293 0.73% 4.86% 0.02% 2013.... MRP*, 0.03% (a) $ 23.86 246 $5,871 0.96% 37.36% 0.03% 2012.... MRP*, 0.01% (a) $ 17.37 256 $4,452 1.54% 15.57% 0.01% 2011.... MRP*, 0.01% (a) $ 15.03 255 $3,828 0.66% (4.02)% 0.01% EQ/T. ROWE PRICE GROWTH STOCK 2015.... RIA*, 0.00% (a) $ 18.56 --(c) $ -- -- 10.21% 0.00% MRP*, 0.02% (a) $ 16.11 26 $ 421 -- 10.27% 0.02% 2014.... RIA*, 0.00% (a) $ 16.84 --(c) $ 2 -- 8.65% 0.00% MRP*, 0.02% (a) $ 14.61 28 $ 413 -- 8.54% 0.02% 2013.... RIA*, 0.00% (a) $ 15.50 --(c) $ 2 -- 37.90% 0.00% MRP*, 0.03% (a) $ 13.46 12 $ 166 -- 37.91% 0.03% 2012.... RIA*, 0.00% (a) $ 11.24 --(c) $ 1 -- 18.94% 0.00% MRP*, 0.01% (a)(b) $ 9.76 2 $ 21 -- 6.43% 0.01% 2011.... RIA*, 0.00% (a) $ 9.45 3 $ 29 -- (1.97)% 0.00% EQ/WELLS FARGO OMEGA GROWTH 2015.... RIA*, 0.00% (a) $210.69 1 $ 240 -- 1.27% 0.00% MRP*, 0.02% (a) $ 14.39 15 $ 216 -- 1.20% 0.02% 2014.... RIA*, 0.00% (a) $208.05 1 $ 194 -- 3.80% 0.00% MRP*, 0.02% (a) $ 14.22 16 $ 224 -- 3.80% 0.02% 2013.... RIA*, 0.00% (a) $200.43 2 $ 375 -- 39.07% 0.00% MRP*, 0.03% (a) $ 13.70 19 $ 255 -- 39.09% 0.03% 2012.... RIA*, 0.00% (a) $144.12 2 $ 236 0.01% 20.43% 0.00% MRP*, 0.01% (a)(b) $ 9.85 4 $ 39 0.01% 7.42% 0.01% 2011.... RIA*, 0.00% (a) $119.67 2 $ 277 -- (5.87)% 0.00% MULTIMANAGER CORE BOND 2015.... MRP*, 0.02% (a) $ 10.16 160 $1,629 2.06% 0.10% 0.02% 2014.... MRP*, 0.02% (a) $ 10.15 104 $1,058 2.15% 3.68% 0.02% 2013.... MRP*, 0.03% (a) $ 9.79 80 $ 778 1.60% (2.39)% 0.03% 2012.... MRP*, 0.01% (a)(b) $ 10.03 50 $ 503 0.72% 0.00% 0.01% MULTIMANAGER TECHNOLOGY 2015.... RIA*, 0.00% (a) $269.46 --(c) $ -- -- 6.29% 0.00% MRP*, 0.02% (a) $ 25.55 179 $4,563 -- 6.24% 0.02% 2014.... RIA*, 0.00% (a) $253.51 --(c) $ 103 -- 13.55% 0.00% MRP*, 0.02% (a) $ 24.05 195 $4,694 -- 13.55% 0.02% 2013.... RIA*, 0.00% (a) $223.26 --(c) $ 92 -- 35.59% 0.00% MRP*, 0.03% (a) $ 21.18 182 $3,856 -- 35.51% 0.03% 2012.... RIA*, 0.00% (a) $164.66 1 $ 124 -- 13.43% 0.00% MRP*, 0.01% (a) $ 15.63 219 $3,419 -- 13.43% 0.01% 2011.... RIA*, 0.00% (a) $145.17 1 $ 159 -- (4.81)% 0.00% MRP*, 0.01% (a) $ 13.78 214 $2,945 -- (4.83)% 0.01%
FSA-88 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 2015 9. Financial Highlights (Concluded)
YEARS ENDED DECEMBER 31, ----------------------------------------------------------- UNITS ACCUMULATION INVESTMENT UNIT OUTSTANDING UNIT VALUE INCOME TOTAL EXPENSE VALUE (000'S) (000'S) RATIO# RETURN** RATIO*** ------ ----------- ------------ ---------- -------- -------- TARGET 2015 ALLOCATION 2015. MRP*, 0.02% (a) $11.54 179 $2,063 1.02% (1.95)% 0.02% 2014. MRP*, 0.02% (a) $11.77 215 $2,529 1.24% 2.97% 0.02% 2013. MRP*, 0.03% (a) $11.43 204 $2,328 1.40% 14.07% 0.03% 2012. MRP*, 0.01% (a) $10.02 183 $1,830 1.40% 10.84% 0.01% 2011. MRP*, 0.01% (a) $ 9.04 178 $1,609 1.44% (2.80)% 0.01% TARGET 2025 ALLOCATION 2015. MRP*, 0.02% (a) $11.82 218 $2,578 1.28% (2.07)% 0.02% 2014. MRP*, 0.02% (a) $12.07 217 $2,618 1.06% 4.05% 0.02% 2013. MRP*, 0.03% (a) $11.60 213 $2,476 1.28% 18.97% 0.03% 2012. MRP*, 0.01% (a) $ 9.75 206 $2,007 1.27% 12.85% 0.01% 2011. MRP*, 0.01% (a) $ 8.64 230 $1,988 1.28% (3.89)% 0.01% TARGET 2035 ALLOCATION 2015. MRP*, 0.02% (a) $11.95 138 $1,646 1.28% (2.05)% 0.02% 2014. MRP*, 0.02% (a) $12.20 136 $1,654 1.36% 4.45% 0.02% 2013. MRP*, 0.03% (a) $11.68 116 $1,357 1.45% 22.30% 0.03% 2012. MRP*, 0.01% (a) $ 9.55 90 $ 858 1.61% 14.10% 0.01% 2011. MRP*, 0.01% (a) $ 8.37 57 $ 478 1.46% (4.67)% 0.01% TARGET 2045 ALLOCATION 2015. MRP*, 0.02% (a) $11.87 112 $1,333 1.36% (2.22)% 0.02% 2014. MRP*, 0.02% (a) $12.14 102 $1,237 1.40% 4.75% 0.02% 2013. MRP*, 0.03% (a) $11.59 92 $1,062 1.59% 25.16% 0.03% 2012. MRP*, 0.01% (a) $ 9.26 60 $ 553 1.63% 15.46% 0.01% 2011. MRP*, 0.01% (a) $ 8.02 47 $ 373 1.45% (5.54)% 0.01% TARGET 2055 ALLOCATION 2015. MRP*, 0.02% (a)(e) $ 9.22 4 $ 33 2.18% (6.77)% 0.02%
---------- (a)Contract charge as described in footnote 7 included in these financial statements. (b)Units were made available on November 15, 2012. For investments with no units outstanding as of December 31, 2012, no 2012 activity is presented. (c)Amount rounds to less than 500 units. (d)AXA Large Cap Growth Managed Volatility replaced EQ/Equity Growth PLUS due to a fund merger on June 20, 2014. (e)Units were made available on May 26, 2015. * For Separate Account No. 66, expenses as a percentage of Average Net Assets (at the rates indicated) for each period presented. Charges made directly to contract owner account through the redemption of units and expenses of the underlying fund have been excluded. 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 that 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. ***For Separate Accounts No. 3, 4, and 10, expenses as a percentage of average net assets (at the rates indicated) consisting of mortality and expense charges and other expenses for each period presented. The ratios included only those expenses that result in a direct reduction to unit values. (+)Rates charged for the year ended December 31, 2015 are reflected under "Contract Charges" shown for each unit value class in the Statement of Assets and Liabilities. # This ratio represents the amount of dividend income, excluding distribution from net realized gains, received by the Variable Investment Options 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 Options invest. 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. FSA-89 SEPARATE ACCOUNTS NO. 10 (POOLED), 4 (POOLED), 3 (POOLED) AND 66 OF AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO FINANCIAL STATEMENTS (CONCLUDED) DECEMBER 31, 2015 11.Subsequent Events All material subsequent transactions and events have been evaluated for the period from December 31, 2015 through 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-90 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, December 31, 2015 and 2014....................................... F-2 Consolidated Statements of Earnings (Loss), Years Ended December 31, 2015, 2014 and 2013...... F-3 Consolidated Statements of Comprehensive Income (Loss), Years Ended December 31, 2015, 2014 and 2013..................................................................................... F-4 Consolidated Statements of Equity, Years Ended December 31, 2015, 2014 and 2013............... F-5 Consolidated Statements of Cash Flows, Years Ended December 31, 2015, 2014 and 2013........... F-6 Notes to Consolidated Financial Statements Note 1 -- Organization....................................................................... F-8 Note 2 -- Significant Accounting Policies.................................................... F-8 Note 3 -- Investments........................................................................ F-21 Note 4 -- Goodwill and Other Intangible Assets............................................... F-38 Note 5 -- Closed Block....................................................................... F-39 Note 6 -- Contractholder Bonus Interest Credits.............................................. F-40 Note 7 -- Fair Value Disclosures............................................................. F-41 Note 8 -- GMDB, GMIB, GIB, GWBL and Other Features and No Lapse Guarantee Features........... F-52 Note 9 -- Reinsurance Agreements............................................................. F-56 Note 10 -- Short-Term and Long-Term Debt..................................................... F-57 Note 11 -- Related Party Transactions........................................................ F-58 Note 12 -- Employee Benefit Plans............................................................ F-60 Note 13 -- Share-Based and Other Compensation Programs....................................... F-64 Note 14 -- Income Taxes...................................................................... F-70 Note 15 -- Accumulated Other Comprehensive Income (Loss)..................................... F-72 Note 16 -- Commitments and Contingent Liabilities............................................ F-73 Note 17 -- Litigation........................................................................ F-74 Note 18 -- Insurance Group Statutory Financial Information................................... F-76 Note 19 -- Business Segment Information...................................................... F-77 Note 20 -- Quarterly Results of Operations (Unaudited)....................................... F-77
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholder of AXA Equitable Life Insurance Company: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of earnings (loss), of comprehensive income (loss), of equity and of cash flows present fairly, in all material respects, the financial position of AXA Equitable Life Insurance Company and its subsidiaries (the "Company") at December 31, 2015 and December 31, 2014, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. /s/ PricewaterhouseCoopers LLP New York, New York March 18, 2016 F-1 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2015 AND 2014
2015 2014 ---------- ---------- (IN MILLIONS) ASSETS Investments: Fixed maturities available for sale, at fair value (amortized cost of $31,201 and 30,795)... $ 31,893 $ 33,034 Mortgage loans on real estate (net of valuation allowances of $6 and $37)...................... 7,171 6,463 Policy loans.................................... 3,393 3,408 Other equity investments........................ 1,477 1,757 Trading securities, at fair value............... 6,805 5,143 Other invested assets........................... 1,788 1,978 ---------- ---------- Total investments.............................. 52,527 51,783 Cash and cash equivalents......................... 3,028 2,716 Cash and securities segregated, at fair value..... 565 476 Broker-dealer related receivables................. 1,971 1,899 Securities purchased under agreements to resell... 79 -- Deferred policy acquisition costs................. 4,469 4,271 Goodwill and other intangible assets, net......... 3,733 3,762 Amounts due from reinsurers....................... 4,466 4,051 Loans to affiliates............................... 1,087 1,087 Guaranteed minimum income benefit reinsurance asset, at fair value............................ 10,570 10,711 Other assets...................................... 4,634 4,190 Separate Accounts' assets......................... 107,497 111,059 ---------- ---------- TOTAL ASSETS...................................... $ 194,626 $ 196,005 ========== ========== LIABILITIES Policyholders' account balances................... $ 33,033 $ 31,848 Future policy benefits and other policyholders liabilities..................................... 24,531 23,484 Broker-dealer related payables.................... 404 551 Securities sold under agreements to repurchase.... 1,890 950 Customers related payables........................ 1,715 1,501 Amounts due to reinsurers......................... 131 74 Short-term debt................................... 584 689 Current and deferred income taxes................. 4,647 4,785 Other liabilities................................. 2,586 2,939 Separate Accounts' liabilities.................... 107,497 111,059 ---------- ---------- Total liabilities.............................. 177,018 177,880 ---------- ---------- Redeemable Noncontrolling Interest................ $ 13 $ 17 ---------- ---------- EQUITY AXA Equitable's equity: Common stock, $1.25 par value, 2 million shares authorized, issued and outstanding............. $ 2 $ 2 Capital in excess of par value.................. 5,321 5,957 Retained earnings............................... 8,958 8,809 Accumulated other comprehensive income (loss)... 228 351 ---------- ---------- Total AXA Equitable's equity................... 14,509 15,119 ---------- ---------- Noncontrolling interest........................... 3,086 2,989 ---------- ---------- Total equity................................... 17,595 18,108 ---------- ---------- TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND EQUITY............................. $ 194,626 $ 196,005 ========== ==========
See Notes to Consolidated Financial Statements. F-2 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 -------- -------- -------- (IN MILLIONS) REVENUES Universal life and investment-type product policy fee income................................................ $ 3,574 $ 3,475 $ 3,546 Premiums................................................ 488 514 496 Net investment income (loss): Investment income (loss) from derivative instruments.. (81) 1,605 (2,866) Other investment income (loss)........................ 2,057 2,210 2,237 -------- -------- -------- Total net investment income (loss)................... 1,976 3,815 (629) -------- -------- -------- Investment gains (losses), net: Total other-than-temporary impairment losses.......... (41) (72) (81) Portion of loss recognized in other comprehensive income (loss)........................................ -- -- 15 -------- -------- -------- Net impairment losses recognized..................... (41) (72) (66) Other investment gains (losses), net.................. 21 14 (33) -------- -------- -------- Total investment gains (losses), net............... (20) (58) (99) -------- -------- -------- Commissions, fees and other income...................... 3,942 3,930 3,823 Increase (decrease) in the fair value of the reinsurance contract asset............................ (141) 3,964 (4,297) -------- -------- -------- Total revenues..................................... 9,819 15,640 2,840 -------- -------- -------- BENEFITS AND OTHER DEDUCTIONS Policyholders' benefits................................. 2,799 3,708 1,691 Interest credited to policyholders' account balances.... 978 1,186 1,373 Compensation and benefits............................... 1,783 1,739 1,743 Commissions............................................. 1,111 1,147 1,160 Distribution related payments........................... 394 413 423 Amortization of deferred sales commissions.............. 49 42 41 Interest expense........................................ 20 53 88 Amortization of deferred policy acquisition costs....... 284 215 580 Capitalization of deferred policy acquisition costs..... (615) (628) (655) Rent expense............................................ 165 163 169 Amortization of other intangible assets................. 28 27 24 Other operating costs and expenses...................... 1,173 1,460 1,512 -------- -------- -------- Total benefits and other deductions................ 8,169 9,525 8,149 -------- -------- -------- Earnings (loss) from operations, before income taxes.... 1,650 6,115 $ (5,309) Income tax (expense) benefit............................ (186) (1,695) 2,073 -------- -------- -------- Net earnings (loss)..................................... 1,464 4,420 (3,236) Less: net (earnings) loss attributable to the noncontrolling interest.............................. (403) (387) (337) -------- -------- -------- Net Earnings (Loss) Attributable to AXA Equitable....... $ 1,061 $ 4,033 $ (3,573) ======== ======== ========
See Notes to Consolidated Financial Statements. F-3 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) COMPREHENSIVE INCOME (LOSS) Net earnings (loss)............................... $ 1,464 $ 4,420 $ (3,236) --------- --------- --------- Other comprehensive income (loss) net of income taxes: Foreign currency translation adjustment........ (25) (21) (12) Change in unrealized gains (losses), net of reclassification adjustment.................. (881) 969 (1,199) Changes in defined benefit plan related items not yet recognized in periodic benefit cost, net of reclassification adjustment........... (4) (23) 299 --------- --------- --------- Total other comprehensive income (loss), net of income taxes.................................... (910) 925 (912) --------- --------- --------- Comprehensive income (loss)....................... 554 5,345 (4,148) Less: Comprehensive (income) loss attributable to noncontrolling interest..................... (388) (358) (345) --------- --------- --------- Comprehensive Income (Loss) Attributable to AXA Equitable....................................... $ 166 $ 4,987 $ (4,493) ========= ========= =========
See Notes to Consolidated Financial Statements. F-4 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF EQUITY YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) EQUITY AXA Equitable's Equity: Common stock, at par value, beginning and end of year........................................ $ 2 $ 2 $ 2 --------- --------- --------- Capital in excess of par value, beginning of year........................................... 5,957 5,934 5,992 Deferred tax on dividend of AB Units............ (35) (26) -- Non cash capital contribution from AXA Financial (See Note 12)........................ 137 -- -- Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 15).................... (772) -- -- Changes in capital in excess of par value....... 34 49 (58) --------- --------- --------- Capital in excess of par value, end of year..... 5,321 5,957 5,934 --------- --------- --------- Retained earnings, beginning of year............ 8,809 5,205 9,125 Net earnings (loss)............................. 1,061 4,033 (3,573) Stockholder dividends........................... (912) (429) (347) --------- --------- --------- Retained earnings, end of year.................. 8,958 8,809 5,205 --------- --------- --------- Accumulated other comprehensive income (loss), beginning of year.............................. 351 (603) 317 Transfer of unrecognized net actuarial loss of the AXA Equitable Qualified Pension Plan to AXA Financial (see Note 15).................... 772 -- -- Other comprehensive income (loss)............... (895) 954 (920) --------- --------- --------- Accumulated other comprehensive income (loss), end of year.................................... 228 351 (603) --------- --------- --------- TOTAL AXA EQUITABLE'S EQUITY, END OF YEAR...... 14,509 15,119 10,538 --------- --------- --------- Noncontrolling interest, beginning of year...... 2,989 2,903 2,494 Repurchase of AB Holding units.................. (154) (62) (76) Net earnings (loss) attributable to noncontrolling interest........................ 403 387 337 Dividends paid to noncontrolling interest....... (414) (401) (306) Dividend of AB Units by AXA Equitable to AXA Financial...................................... 145 48 113 Other comprehensive income (loss) attributable to noncontrolling interest..................... (15) (29) 8 Other changes in noncontrolling interest........ 132 143 333 --------- --------- --------- Noncontrolling interest, end of year......... 3,086 2,989 2,903 --------- --------- --------- TOTAL EQUITY, END OF YEAR......................... $ 17,595 $ 18,108 $ 13,441 ========= ========= =========
See Notes to Consolidated Financial Statements. F-5 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013
2015 2014 2013 --------- --------- --------- (IN MILLIONS) Net earnings (loss)..................................... $ 1,464 $ 4,420 $ (3,236) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Interest credited to policyholders' account balances........................................... 978 1,186 1,373 Universal life and investment-type product policy fee income......................................... (3,574) (3,475) (3,546) Net change in broker-dealer and customer related receivables/payables............................... (38) (525) (740) (Income) loss related to derivative instruments...... 81 (1,605) 2,866 Change in reinsurance recoverable with affiliate..... (581) (128) (176) Investment (gains) losses, net....................... 20 58 99 Change in segregated cash and securities, net........ (89) 505 571 Change in deferred policy acquisition costs.......... (331) (413) (74) Change in future policy benefits..................... 961 1,647 (384) Change in current and deferred income taxes.......... 258 1,448 (1,754) Real estate related write-off charges................ -- 25 56 Change in accounts payable and accrued expenses...... 38 (259) 33 Change in the fair value of the reinsurance contract asset..................................... 141 (3,964) 4,297 Contribution to pension plans........................ -- (6) -- Amortization of deferred compensation................ 172 171 159 Amortization of deferred sales commission............ 49 42 41 Amortization of reinsurance cost..................... 39 302 302 Other depreciation and amortization.................. (18) 44 122 Amortization of other intangibles.................... 28 27 24 Other, net........................................... 116 (117) 128 --------- --------- --------- Net cash provided by (used in) operating activities... (286) (617) 161 --------- --------- --------- Cash flows from investing activities: Maturities and repayments of fixed maturities and mortgage loans on real estate...................... 3,996 2,975 3,691 Sales of investments................................. 1,284 1,099 3,444 Purchases of investments............................. (6,145) (6,751) (6,057) Purchases of trading account securities.............. (12,501) (7,014) (3,794) Sales maturities and repayment of trading account securities......................................... 10,810 6,077 1,893 Cash settlements related to derivative instruments... 529 999 (2,500) Purchase of business, net of cash acquired........... -- (61) -- Change in short-term investments..................... (363) (5) -- Decrease in loans to affiliates...................... -- -- 5 Increase in loans to affiliates...................... -- -- (56) Investment in capitalized software, leasehold improvements and EDP equipment..................... (71) (83) (67) Other, net........................................... 35 (9) 12 --------- --------- --------- Net cash provided by (used in) investing activities... $ (2,426) $ (2,773) $ (3,429) --------- --------- ---------
See Notes to Consolidated Financial Statements. F-6 AXA EQUITABLE LIFE INSURANCE COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 (CONTINUED)
2015 2014 2013 -------- --------- --------- (IN MILLIONS) Cash flows from financing activities: Policyholders' account balances: Deposits........................................ $ 4,821 $ 5,034 $ 5,469 Withdrawals and transfers to Separate Accounts.. (880) (1,075) (1,188) Change in short-term financings.................. 95 221 (55) Change in collateralized pledged liabilities..... (270) 430 (663) Change in collateralized pledged assets.......... (2) (12) (18) Repayment of Loans from Affiliates............... -- (825) (500) Repayment of long term debt...................... (200) -- -- Shareholder dividends paid....................... (767) (382) (234) Repurchase of AB Holding units................... (214) (90) (113) Distribution to noncontrolling interest in consolidated subsidiaries....................... (414) (401) (306) Increase (decrease) in Securities sold under agreement to repurchase......................... 939 950 -- Change in securities sold under agreements to resale.......................................... (79) -- -- Other, net....................................... 5 (7) -- -------- --------- --------- Net cash provided by (used in) financing activities....................................... 3,034 3,843 2,392 -------- --------- --------- Effect of exchange rate changes on cash and cash equivalents...................................... (10) (20) (3) Change in cash and cash equivalents................ 312 433 (879) Cash and cash equivalents, beginning of year....... 2,716 2,283 3,162 -------- --------- --------- Cash and Cash Equivalents, End of Year............. $ 3,028 $ 2,716 $ 2,283 ======== ========= ========= Supplemental cash flow information: Interest Paid.................................... $ 19 $ 72 $ 91 ======== ========= ========= Income Taxes (Refunded) Paid..................... $ (80) $ 272 $ (214) ======== ========= =========
See Notes to Consolidated Financial Statements. F-7 AXA EQUITABLE LIFE INSURANCE COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1) ORGANIZATION AXA Equitable Life Insurance Company ("AXA Equitable," and collectively with its consolidated subsidiaries the "Company") is a direct, wholly-owned subsidiary of AXA Equitable Financial Services, LLC ("AEFS"). AEFS is a direct, wholly-owned subsidiary of AXA Financial, Inc. ("AXA Financial," and collectively with its consolidated subsidiaries, "AXA Financial Group"). AXA Financial is an indirect wholly-owned subsidiary of AXA S.A. ("AXA"), a French holding company for the AXA Group, a worldwide leader in financial protection. The Company conducts operations in two business segments: the Insurance and Investment Management segments. The Company's management evaluates the performance of each of these segments independently. Insurance The Insurance segment offers a variety of term, variable and universal life insurance products, variable and fixed-interest annuity products and investment products including mutual funds principally to individuals and small and medium size businesses and professional and trade associations. This segment also includes Separate Accounts for individual insurance and annuity products. The Company's insurance business is conducted principally by AXA Equitable and its indirect, wholly-owned insurance subsidiaries and AXA Equitable Funds Management Group ("AXA Equitable FMG"). Investment Management The Investment Management segment is principally comprised of the investment management business of AllianceBernstein L.P., a Delaware limited partnership (together with its consolidated subsidiaries "AB"). AB provides research, diversified investment management and related services globally to a broad range of clients. This segment also includes institutional Separate Accounts principally managed by AB that provide various investment options for large group pension clients, primarily defined benefit and contribution plans, through pooled or single group accounts. AB is a private partnership for Federal income tax purposes and, accordingly, is not subject to Federal and state corporate income taxes. However, AB is subject to a 4.0% New York City unincorporated business tax ("UBT"). Domestic corporate subsidiaries of AB are subject to Federal, state and local income taxes. Foreign corporate subsidiaries are generally subject to taxes in the foreign jurisdictions where they are located. The Company provides Federal and state income taxes on the undistributed earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are permanently invested outside the United States. At December 31, 2015 and 2014, the Company's economic interest in AB was 28.6% and 32.2%, respectively. At December 31, 2015 and 2014, respectively, AXA and its subsidiaries' economic interest in AB (including AXA Financial Group) was approximately 62.8% and 62.7%. AXA Equitable is the parent of AllianceBernstein Corporation, the general partner ("General Partner") of the limited partnership, as a result it consolidates AB in the Company's consolidated financial statements. 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 reflect all adjustments necessary in the opinion of management for a fair presentation of the consolidated financial position of the Company and its consolidated results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of AXA Equitable and its subsidiaries engaged in insurance related businesses (collectively, the "Insurance Group"); other subsidiaries, principally AB; and those investment companies, partnerships and joint ventures in which AXA Equitable or its subsidiaries has control and a majority economic interest as well as those variable interest entities ("VIEs") that meet the requirements for consolidation. F-8 All significant intercompany transactions and balances have been eliminated in consolidation. The years "2015", "2014" and "2013" refer to the years ended December 31, 2015, 2014 and 2013, respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. Accounting and Consolidation of VIE's For all new investment products and entities developed by the Company (other than Collateralized Debt Obligations ("CDOs")), the Company first determines whether the entity is a VIE, which involves determining an entity's variability and variable interests, identifying the holders of the equity investment at risk and assessing the five characteristics of a VIE. Once an entity has been determined to be a VIE, the Company then identifies the primary beneficiary of the VIE. If the Company is deemed to be the primary beneficiary of the VIE, then the Company consolidates the entity. The Company provides seed capital to its investment teams to develop new products and services for their clients. The Company's original seed investment typically represents all or a majority of the equity investment in the new product is temporary in nature. The Company evaluates its seed investments on a quarterly basis and consolidates such investments as required pursuant to U.S. GAAP. Management of the Company reviews quarterly its investment management agreements and its investments in, and other financial arrangements with, certain entities that hold client assets under management ("AUM") to determine the entities that the Company is required to consolidate under this guidance. These entities include certain mutual fund products, hedge funds, structured products, group trusts, collective investment trusts and limited partnerships. AB earned investment management fees on client AUM of these entities but derived no other benefit from those assets and cannot utilize those assets in its operations. At December 31, 2015, AB had significant variable interests in certain other structured products and hedge funds with approximately $28 million in client AUM. However, these VIEs do not require consolidation because management has determined that AB is not the primary beneficiary of the expected losses or expected residual returns of these entities. AB's maximum exposure to loss in these entities is limited to its investments of $200,000 in and prospective investment management fees earned from these entities. Adoption of New Accounting Pronouncements In June 2014, the Financial Accounting Standards Board ("FASB") issued new guidance for repurchase-to-maturity transactions, repurchase financings and added disclosure requirements, which aligns the accounting for repurchase-to-maturity transactions and repurchase financing arrangements with the accounting for other typical repurchase agreements. The new guidance also requires additional disclosures about repurchase agreements and similar transactions. The accounting changes and disclosure requirements were effective for interim or annual periods beginning after December 15, 2014. Implementation of this guidance did not have a material impact on the Company's consolidated financial statements. The FASB issued new guidance that allows investors to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under this method, which replaces the effective yield method, an investor amortizes the cost of its investment, in proportion to the tax credits and other tax benefits it receives, to income tax expense. The guidance also introduces disclosure requirements for all investments in qualified affordable housing projects, regardless of the accounting method used for those investments. The guidance was effective for annual periods beginning after December 15, 2014. Implementation of this guidance did not have a material impact on the Company's consolidated financial statements. Future Adoption of New Accounting Pronouncements In February 2016, the FASB issued revised guidance to lease accounting. The revised guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases. Lessor accounting will continue to be similar to the current model, but updated to align with certain changes to the lessee model. Extensive quantitative and qualitative disclosures, including significant judgments made by management, will be required to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing contracts. The revised guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. In January 2016, the FASB issued new guidance related to recognition and measurement of financial assets and financial liabilities. The new guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified guidance related to the valuation allowance assessment F-9 when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. New guidance is effective prospectively for fiscal years (and interim periods within those years) beginning after December 15, 2017. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. In May 2015, the FASB issued new guidance related to disclosures for investments in certain entities that calculate net asset value ("NAV") per share (or its equivalent). Under the new guidance, investments measured at NAV, as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. The only criterion for categorizing investments in the fair value hierarchy will be the observability of the inputs. The amendment is effective retrospectively for fiscal years (and interim periods within those years) beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In April 2015, the FASB issued new guidance, simplifying the presentation of debt issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The new guidance is effective retrospectively for interim or annual periods beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In February 2015, the FASB issued a new consolidation standard that makes targeted amendments to the VIE assessment, including guidance specific to limited partnerships and similar entities, and ends the deferral granted to investment companies for applying the VIE guidance. The new standard is effective for annual periods, beginning after December 15, 2015, but may be early-adopted in any interim period. Management currently is evaluating the impacts this guidance may have on the Company's consolidated financial statements. In August 2014, the FASB issued new guidance which requires management to evaluate whether there is "substantial doubt" about the reporting entity's ability to continue as a going concern and provide related footnote disclosures about those uncertainties, if they exist. The new guidance is effective for annual periods, ending after December 15, 2016 and interim periods thereafter. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In June 2014, the FASB issued new guidance for accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance is effective for interim and annual periods beginning after December 15, 2015. Management does not expect implementation of this guidance will have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued new revenue recognition guidance that is intended to improve and converge the financial reporting requirements for revenue from contracts with customers with International Financial Reporting Standards ("IFRS"). The new guidance applies to contracts that deliver goods or services to a customer, except when those contracts are for: insurance, leases, rights and obligations that are in the scope of certain financial instruments (i.e., derivative contracts) and guarantees other than product or service warranties. The new guidance is effective for interim and annual periods, beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Management is currently evaluating the impact that adoption of this guidance will have on the Company's consolidated financial statements. Closed Block As a result of demutualization, the 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 AXA Equitable. No reallocation, transfer, borrowing or lending of assets can be made between the Closed Block and other portions of AXA Equitable's General Account, any of its Separate Accounts or any affiliate of AXA Equitable 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. 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 F-10 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. 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 OCI. 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 and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. 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 earnings (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 prior to impairment. 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. Policy loans are stated at unpaid principal balances. Partnerships, investment companies and joint venture interests that the Company has control of and has a majority 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 basis of accounting and are reported either with equity real estate or other equity investments, as appropriate. The Company records its interests in certain of these partnerships on a month or one quarter lag. Equity securities, which include common stock, and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in other equity investments with changes in fair value reported in OCI. Trading securities, which include equity securities and fixed maturities, are carried at fair value based on quoted market prices, with unrealized gains (losses) reported in other investment income (loss) in the statements of Net earnings (loss). F-11 Corporate owned life insurance ("COLI") has been purchased by AXA Equitable and certain subsidiaries on the lives of certain key employees and AXA Equitable and these subsidiaries are named as beneficiaries under these policies. COLI is carried at the cash surrender value of the policies. At December 31, 2015 and 2014, the carrying value of COLI was $864 million and $803 million, respectively, and is reported in Other invested assets in the consolidated balance sheets. Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. 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. All securities owned, including United States government and agency securities, mortgage-backed securities and 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 exchange traded equity, currency and interest rate futures contracts, total return and/or other equity swaps, interest rate swap and floor contracts, swaptions, variance swaps as well as equity options and 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 "Investment income (loss) from derivative instruments" 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 earnings (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. Mortgage Loans on Real Estate ("mortgage loans"): 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 net operating income divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. . Occupancy -- Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. F-12 . 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 Investments Under Surveillance ("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 problems 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 on real estate has been restructured to where the collection of interest is considered likely. At December 31, 2015 and 2014, the carrying values of commercial mortgage loans that had been classified as nonaccrual mortgage loans were $72 million and $89 million, respectively. Troubled Debt Restructuring When a loan modification is determined to be a troubled debt restructuring ("TDR"), the impairment of the loan is re-measured by discounting the expected cash flows to be received based on the modified terms using the loan's original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the mortgage loans. Additionally, the loan continues to be subject to the credit review process noted above. 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 securities are reflected in Net investment income (loss). F-13 Unrealized investment gains (losses) on fixed maturities and equity securities designated as AFS held by the Company are accounted for as a separate component of Accumulated Other Comprehensive Income ("AOCI"), net of related deferred income taxes, amounts attributable to certain pension operations, Closed Blocks' policyholders dividend obligation, insurance liability loss recognition and DAC related to universal life ("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 and equity securities classified as AFS and do not reflect any change in fair value of policyholders' account balances and future policy benefits. 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. The accounting guidance established 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. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Recognition of Insurance Income and Related Expenses Deposits related to 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. F-14 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. AXA Equitable FMG performs investment advisory and administrative services to investment companies, currently AXA Premier VIP Trust ("VIP Trust"), EQ Advisors Trust ("EQAT"), 1290 Funds, AXA Allocation Funds Trusts and AXA Offshore Multimanager Funds Trust ("Other AXA Trusts"). AXA Equitable FMG has entered into sub-advisory agreements with affiliated and unaffiliated registered investment advisers to provide sub-advisory services to AXA Equitable FMG with respect to certain portfolios of EQAT and the Other AXA Trusts. AXA Equitable FMG's administrative services include, among others, fund accounting and compliance services. AXA Equitable FMG has entered into a sub-administration agreement with JPMorgan Chase Bank, N.A. to provide certain sub-administration services to AXA Equitable FMG as instructed by AXA Equitable FMG. AXA Equitable FMG earns fees related to these services; the fees are calculated as a percentage of assets under management and are recorded in Commissions, fees and other income in the Consolidated statements of earnings (loss) as the related services are performed. Sub-advisory and sub-administrative expenses associated with the services are calculated and recorded as the related services are performed in Other operating costs and expenses in the Consolidated statements of earnings (loss). 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. 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. 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 Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, 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. 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 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. In second quarter 2015, based upon management's current expectations of interest rates and future fund growth, the Company updated its Reversion to the Mean ("RTM") F-15 assumption from 9.0% to 7.0%. The average gross long-term return measurement start date was also updated to December 31, 2014. 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, 2015, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance and variable annuities was 7.0% (4.65% net of product weighted average Separate Account fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (12.65% net of product weighted average Separate Account fees) and 0.0% (-2.35% net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is 5 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. If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than 5 years in order to reach the average gross long-term return estimate, the application of the 5 year maximum duration limitation would result in an acceleration of DAC amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than 5 years would result in a required deceleration of DAC amortization. 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 quarterly 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, 2015, the average rate of assumed investment yields, excluding policy loans, was 5.1% grading to 4.5% over 10 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 is 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 earnings (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 is subject to recoverability testing as part of the Company's premium deficiency testing. If a premium deficiency exists, DAC is 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. Contractholder Bonus Interest Credits Contractholder 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 contractholder 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. Policyholders' Account Balances and Future Policy Benefits Policyholders' account balances for UL and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. The Company has issued and continues to offer certain variable annuity products with GMDB and Guaranteed income benefit ("GIB") features. The Company previously issued certain variable annuity products with Guaranteed withdrawal benefit for life ("GWBL") and other features. The Company also issues certain variable annuity products that contain a GMIB feature which, if elected by the policyholder after a F-16 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 GMIB base. Reserves for GMDB and GMIB obligations are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts. 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 reversion to the mean approach, consistent with that used for DAC amortization. There can be no assurance that actual experience will be consistent with management's estimates. For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances are calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. For participating traditional life policies, future policy benefit liabilities are calculated using a net level premium method on the basis of actuarial 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 contractholders' fund balances and, after annuitization, are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 5.0% to 6.3% (weighted average of 5.1%) for approximately 99.0% of life insurance liabilities and from 1.6% to 6.5% (weighted average of 5.1%) for annuity liabilities. 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 reported in Policyholders' account balances in the consolidated balance sheets. As a member of the Federal Home Loan Bank of New York ("FHLBNY"), AXA Equitable has access to collateralized borrowings. AXA Equitable may also issue funding agreements to the FHLBNY. Both the collateralized borrowings and funding agreements would require AXA Equitable to pledge qualified mortgage-backed assets and/or government securities as collateral. As entering into FHLBNY membership, borrowings and funding agreements requires the ownership of FHLB stock, AXA Equitable has purchased FHLBNY stock of $31 million, as of December 31, 2015. At December 31, 2015, AXA Equitable had $500 million of outstanding funding agreements with the FHLBNY. These funding agreements were used for asset liability management purposes. For other instruments used for asset liability management purposes, see "Derivative and offsetting assets and liabilities" included in Note 3. Accounting for Variable Annuities with GMDB and GMIB Features Future claims exposure on products with guaranteed minimum death benefit ("GMDB") and guaranteed minimum income benefit ("GMIB") features are sensitive to movements in the equity markets and interest rates. The Company has in place various hedging programs utilizing derivatives that are designed to mitigate the impact of movements in equity markets and interest rates. These various hedging programs do not qualify for hedge accounting treatment. As a result, changes in the value of the derivatives will be recognized in the period in which they occur while offsetting changes in reserves and deferred policy acquisition costs ("DAC") will be recognized over time in accordance with policies described below under "Policyholders' Account Balances and Future Policy Benefits" and "DAC". These differences in recognition contribute to earnings volatility. GMIB reinsurance contracts are used to cede to affiliated and non-affiliated reinsurers a portion of the exposure on variable annuity products that offer the GMIB feature. The GMIB reinsurance contracts are accounted for as derivatives and are reported at fair value. Gross reserves for GMIB are calculated on the basis of assumptions related to projected benefits and related contract charges over the lives of the contracts and therefore will not immediately reflect the offsetting impact on future claims exposure resulting from the same capital market and/or interest rate fluctuations that cause gains or losses on the fair value of the GMIB reinsurance contracts. The changes in the fair value of the F-17 GMIB reinsurance contracts are recorded in the period in which they occur while offsetting changes in gross reserves and DAC for GMIB are recognized over time in accordance with policies described below under "Policyholders' Account Balances and Future Policy Benefits" and "DAC". These differences in recognition contribute to earnings volatility. Policyholders' Dividends The amount of policyholders' dividends to be paid (including dividends on policies included in the Closed Block) is determined annually by AXA Equitable's board of directors. 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 AXA Equitable. At December 31, 2015, participating policies, including those in the Closed Block, represent approximately 5.2% ($18,599 million) of directly written life insurance in-force, net of amounts ceded. Separate Accounts Generally, Separate Accounts established under New York State Insurance Law are not chargeable with liabilities that arise from any other business of AXA Equitable. 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 Accounts represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of contractholders, 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. The assets and liabilities of seven Separate Accounts are presented and accounted for as General Account assets and liabilities due to the fact that not all of the investment performance in those Separate Accounts is passed through to policyholders. Investment assets in these Separate Accounts principally consist of fixed maturities that are classified as AFS in the accompanying consolidated financial statements. These Separate Accounts are combined on a line-by-line basis with the Company's General Account assets, liabilities, revenues and expenses and the accounting for these investments is consistent with the methodologies described herein for similar financial instruments held within the General Account. The investment results of Separate Accounts, including unrealized gains (losses), on which the Company does not bear the investment risk are reflected directly in Separate Accounts liabilities. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such Separate Accounts are offset within the same line in the consolidated statements of earnings (loss). For 2015, 2014 and 2013, investment results of such Separate Accounts were gains (losses) of $1,148 million, $5,959 million and $19,022 million, respectively. Deposits to Separate Accounts are reported as increases in Separate Accounts liabilities and are not reported in revenues. 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 equity investments in the consolidated balance sheets. Recognition of Investment Management Revenues and Related Expenses Commissions, fees and other income principally include the Investment Management segment's investment advisory and service fees, distribution revenues and institutional research services revenue. Investment advisory and service base fees, generally calculated as a percentage, referred to as basis points ("BPs"), of assets under management, are recorded as revenue as the related services are performed; they include brokerage transactions charges received by Sanford C. Bernstein & Co. LLC ("SCB LLC") for certain retail, private client and institutional investment client transactions. Certain investment advisory contracts, including those associated with hedge funds, provide for a performance-based fee, in addition to or in lieu of a base fee which is calculated as either a percentage of absolute investment results or a percentage of the investment results in excess of a stated benchmark over a specified period of time. Performance-based fees are recorded as a component of revenue at the end of each contract's measurement period. Institutional research services revenue consists of brokerage transaction charges received by SCB LLC and Sanford C. Bernstein Limited ("SCBL") for independent research and brokerage-related services provided to institutional investors. Brokerage transaction charges earned and related expenses are recorded on a trade date basis. Distribution revenues and shareholder servicing fees are accrued as earned. Commissions paid to financial intermediaries in connection with the sale of shares of open-end AB sponsored mutual funds sold without a front-end sales charge ("back-end load shares") are capitalized as deferred sales commissions and amortized over periods not exceeding five and one-half years for U.S. fund shares and four years for non-U.S. fund shares, the periods of time during which the deferred sales commissions are generally recovered. These commissions are recovered from distribution services fees received from those funds and from F-18 contingent deferred sales commissions ("CDSC") received from shareholders of those funds upon the redemption of their shares. CDSC cash recoveries are recorded as reductions of unamortized deferred sales commissions when received. Effective January 31, 2009, back-end load shares are no longer offered to new investors by AB's U.S. funds. Management tests the deferred sales commission asset for recoverability quarterly and determined that the balance as of December 31, 2015 was not impaired. AB's management determines recoverability by estimating undiscounted future cash flows to be realized from this asset, as compared to its recorded amount, as well as the estimated remaining life of the deferred sales commission asset over which undiscounted future cash flows are expected to be received. Undiscounted future cash flows consist of ongoing distribution services fees and CDSC. Distribution services fees are calculated as a percentage of average assets under management related to back-end load shares. CDSC are based on the lower of cost or current value, at the time of redemption, of back-end load shares redeemed and the point at which redeemed during the applicable minimum holding period under the mutual fund distribution system. Significant assumptions utilized to estimate future average assets under management and undiscounted future cash flows from back-end load shares include expected future market levels and redemption rates. Market assumptions are selected using a long-term view of expected average market returns based on historical returns of broad market indices. Future redemption rate assumptions are determined by reference to actual redemption experience over the five-year, three-year and one-year periods and current quarterly periods ended December 31, 2015. These assumptions are updated periodically. Estimates of undiscounted future cash flows and the remaining life of the deferred sales commission asset are made from these assumptions and the aggregate undiscounted cash flows are compared to the recorded value of the deferred sales commission asset. If AB's management determines in the future that the deferred sales commission asset is not recoverable, an impairment condition would exist and a loss would be measured as the amount by which the recorded amount of the asset exceeds its estimated fair value. Estimated fair value is determined using AB's management's best estimate of future cash flows discounted to a present value amount. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of identifiable net assets of acquired companies, and relates principally to the acquisition of SCB Inc., an investment research and management company formerly known as Sanford C. Bernstein Inc. ("Bernstein Acquisition") and the purchase of units of the limited partnership interest in AB ("AB Units"). In accordance with the guidance for Goodwill and Other Intangible Assets, goodwill is tested annually for impairment and at interim periods if events or circumstances indicate an impairment could have occurred. Intangible assets related to the Bernstein Acquisition and purchases of AB Units include values assigned to contracts of businesses acquired based on their estimated fair value at the time of acquisition, less accumulated amortization. These intangible assets are generally amortized on a straight-line basis over their estimated useful life of approximately 20 years. All intangible assets are periodically reviewed for impairment as events or changes in circumstances indicate that the carrying value may not be recoverable. If the carrying value exceeds fair value, additional impairment tests are performed to measure the amount of the impairment loss, if any. Other Accounting Policies 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. If an impairment is determined to have occurred, software capitalization is accelerated for the remaining balance deemed to be impaired. AXA Financial and certain of its consolidated subsidiaries and affiliates, including the Company, 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. F-19 Out of Period Adjustments In 2015, the Company recorded several out-of-period adjustments ("OOPA") in its financial statements These OOPAs resulted in understating the 2015 total revenues by $112 million, and understated total benefits and other deductions by $51 million. These OOPAs primarily related to errors in the models used to calculate the initial fee liability amortization, affiliated ceded reserves and deferred cost of reinsurance for certain of its variable and interest sensitive life ("VISL") products. In addition, the Company recorded an OOPA in 2015 related an error in the model used to calculate the deferred cost of reinsurance with an un-affiliated reinsurer related to the reinsurance of the Company's Disability Insurance ("DI") business. As a result of these OOPAs, the 2015 earnings (loss) from operations, before income tax was understated by $61 million, and the net earnings were understated by $40 million. In 2014, the Company recorded several OOPAs in its financial statements. The Company refined the models used to calculate the fair value of the GMIB reinsurance asset and the GMIB and GMDB liabilities. In addition, the Company recorded an OOPA related to an understatement of the dividend of AB Units by AXA Equitable to AXA Financial during the year ended December 31, 2013 and the related deferred tax liability for the excess of the fair value of the AB Unit dividend over the recorded value. The net impact of the corrections to AXA Equitable's shareholders' equity and Net earnings was a decrease of $1 million and an increase of $73 million, respectively. Management has evaluated the impact of all OOPAs both individually and in the aggregate and concluded they are not material to any previously reported quarterly or annual financial statements, or to the periods in which they were corrected. Assumption Updates and Refinements In 2015, expectations of long-term lapse and partial withdrawal rates for variable annuities with GMDB and GMIB guarantees were updated based on emerging experience. This update increases expected future claim costs and the fair value of the GMIB reinsurance contract asset. Also in 2015, expectations of GMIB election rates were lowered for certain ages based on emerging experience. This decreases the expected future GMIB claim cost and the fair value of the GMIB reinsurance contract asset, while increasing the expected future GMDB claim cost. The impact of these assumption updates in 2015 were a net decrease in the fair value of the GMIB reinsurance contract asset of $746 million, a decrease in the GMDB/GMIB reserves of $637 million and a decrease in the amortization of DAC of $17 million. In 2015, the after tax impacts of these assumption updates decreased Net earnings by approximately $60 million. Effective March 2016, the Company will raise cost of insurance ("COI") rates for certain UL policies issued between 2004 and 2007 which have both issue ages 70 and above and a current face value amount of $1 million and above. The Company is raising the COI rates for these policies as management expects future mortality and investment experience to be less favorable than what was anticipated when the current schedule of COI rates was established. This COI rate increase is larger than the increase that previously had been anticipated in management's reserve assumptions. As a result management updated the assumption to reflect the actual COI rate increase, resulting in a $46 million increase to net earnings for the year ended December 31, 2015. Additionally in 2015, based upon management's current expectations of interest rates and future fund growth, the Company updated its RTM assumption used to calculate GMDB/GMIB and VISL reserves and amortization of DAC from 9.0% to 7.0%. The impact of this assumption update in 2015 was an increase in GMIB/GMDB reserves of $723 million, an increase in VISL reserves of $29 million and decrease in amortization of DAC of $67 million. In 2015, the after tax impact of this assumption update decreased Net earnings by approximately $445 million. In 2014, the Company updated its assumptions of future GMIB costs as a result of lower expected short term lapses for those policyholders who did not accept the GMIB buyout offer that expired in third quarter 2014. The impacts of this refinement in 2014 resulted in an increase in the fair value of the GMIB reinsurance asset of $62 million and an increase in the GMIB reserves of $16 million. In 2014, the after DAC and after tax impact of this assumption update increased Net earnings by approximately $30 million. In addition, in 2014, the Company refined the fair value calculation of the GMIB reinsurance contract asset and GWBL, GIB and guaranteed minimum accumulation benefit ("GMAB") liabilities, utilizing scenarios that explicitly reflect risk free bond and equity components separately (previously aggregated and including counterparty risk premium embedded in swap rates) and stochastic interest rates for projecting and discounting cash flows (previously a single yield curve). The net impacts of these refinements in 2014 were a $510 million increase to the GMIB reinsurance contract asset and a $37 million increase in the GWBL, GIB and GMAB liability which are reported in the Company's consolidated statements of Earnings (Loss) as Increase (decrease) in the fair value of the reinsurance contract asset and Policyholders' benefits, respectively. In 2014, the after DAC and after tax impact of this refinements increased Net earnings by approximately $307 million. F-20 3) INVESTMENTS Fixed Maturities and Equity Securities The following table provides information relating to fixed maturities and equity securities classified as AFS: AVAILABLE-FOR-SALE SECURITIES BY CLASSIFICATION
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED OTTI COST GAINS LOSSES FAIR VALUE IN AOCI/(3)/ --------- ---------- ---------- ----------- ----------- (IN MILLIONS) DECEMBER 31, 2015 ----------------- Fixed Maturity Securities: Public corporate........................... $ 12,890 $ 688 $ 202 $ 13,376 $ -- Private corporate.......................... 6,818 232 124 6,926 -- U.S. Treasury, government and agency....... 8,800 280 305 8,775 -- States and political subdivisions.......... 437 68 1 504 -- Foreign governments........................ 397 36 18 415 -- Commercial mortgage-backed................. 591 29 87 533 9 Residential mortgage-backed/(1)/........... 608 32 -- 640 -- Asset-backed/(2)/.......................... 68 10 1 77 3 Redeemable preferred stock................. 592 57 2 647 -- --------- --------- ---------- ----------- ----------- Total Fixed Maturities.................... 31,201 1,432 740 31,893 12 Equity securities............................ 34 -- 2 32 -- --------- --------- ---------- ----------- ----------- Total at December 31, 2015................... $ 31,235 $ 1,432 $ 742 $ 31,925 $ 12 ========= ========= ========== =========== =========== December 31, 2014: ------------------ Fixed Maturity Securities: Public corporate........................... $ 13,808 $ 1,140 $ 51 $ 14,897 $ -- Private corporate.......................... 6,934 409 20 7,323 -- U.S. Treasury, government and agency....... 6,685 672 26 7,331 -- States and political subdivisions.......... 441 78 -- 519 -- Foreign governments........................ 405 48 7 446 -- Commercial mortgage-backed................. 855 22 142 735 10 Residential mortgage-backed/(1)/........... 752 43 -- 795 -- Asset-backed/(2)/.......................... 86 14 1 99 3 Redeemable preferred stock................. 829 70 10 889 -- --------- --------- ---------- ----------- ----------- Total Fixed Maturities.................... 30,795 2,496 257 33,034 13 Equity securities............................ 36 2 -- 38 -- --------- --------- ---------- ----------- ----------- Total at December 31, 2014................... $ 30,831 $ 2,498 $ 257 $ 33,072 $ 13 ========= ========= ========== =========== ===========
/(1)/Includes publicly traded agency pass-through securities and collateralized mortgage obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. /(3)/Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance. F-21 The contractual maturities of AFS fixed maturities (excluding redeemable preferred stock) at December 31, 2015 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. AVAILABLE-FOR-SALE FIXED MATURITIES CONTRACTUAL MATURITIES AT DECEMBER 31, 2015
AMORTIZED COST FAIR VALUE ---------- ---------- (IN MILLIONS) Due in one year or less...................... $ 1,469 $ 1,486 Due in years two through five................ 7,012 7,395 Due in years six through ten................. 10,429 10,406 Due after ten years.......................... 10,432 10,709 ---------- ---------- Subtotal.................................. 29,342 29,996 Commercial mortgage-backed securities........ 591 533 Residential mortgage-backed securities....... 608 640 Asset-backed securities...................... 68 77 ---------- ---------- Total........................................ $ 30,609 $ 31,246 ========== ==========
The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during 2015, 2014 and 2013:
December 31, --------------------------- 2015 2014 2013 ------- ------- --------- (IN MILLIONS) Proceeds from sales.......................... $ 979 $ 716 $ 3,220 ======= ======= ========= Gross gains on sales......................... $ 33 $ 21 $ 71 ======= ======= ========= Gross losses on sales........................ $ (8) $ (9) $ (88) ======= ======= ========= Total OTTI................................... $ (41) $ (72) $ (81) Non-credit losses recognized in OCI.......... -- -- 15 ------- ------- --------- Credit losses recognized in earnings (loss).. $ (41) $ (72) $ (66) ======= ======= =========
The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts. FIXED MATURITIES -- CREDIT LOSS IMPAIRMENTS
2015 2014 -------- -------- (IN MILLIONS) Balances at January 1,...................................... $ (254) $ (370) Previously recognized impairments on securities that matured, paid, prepaid or sold............................ 97 188 Recognized impairments on securities impaired to fair value this period/(1)/.......................................... (11) -- Impairments recognized this period on securities not previously impaired....................................... (22) (41) Additional impairments this period on securities previously impaired.................................................. (8) (31) 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,.................................... $ (198) $ (254) ======== ========
/(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-22 Net unrealized investment gains (losses) on fixed maturities and equity securities 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:
DECEMBER 31, ------------------ 2015 2014 ------- --------- (IN MILLIONS) AFS Securities: Fixed maturities: With OTTI loss............................. $ 16 $ 10 All other.................................. 676 2,229 Equity securities........................... (2) 2 ------- --------- Net Unrealized Gains (Losses)................. $ 690 $ 2,241 ======= =========
Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other: NET UNREALIZED GAINS (LOSSES) ON FIXED MATURITIES WITH OTTI LOSSES
AOCI GAIN NET (LOSS) UNREALIZED DEFERRED RELATED TO GAIN INCOME NET UNREALIZED (LOSSES) ON POLICYHOLDERS TAX ASSET INVESTMENT INVESTMENTS DAC LIABILITIES (LIABILITY) GAINS (LOSSES) ------------- ------- ------------- ----------- -------------- (IN MILLIONS) BALANCE, JANUARY 1, 2015..................... $ 10 $ -- $ -- $ (4) $ 6 Net investment gains (losses) arising during the period................................. (7) -- -- -- (7) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 13 -- -- -- 13 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- -- -- -- -- Deferred income taxes..................... -- -- -- (1) (1) Policyholders liabilities................. -- -- (4) -- (4) ------------- ------- ------------- ----------- -------------- BALANCE, DECEMBER 31, 2015................... $ 16 $ -- $ (4) $ (5) $ 7 ============= ======= ============= =========== ============== BALANCE, JANUARY 1, 2014..................... $ (28) $ 2 $ 10 $ 5 $ (11) Net investment gains (losses) arising during the period................................. (1) -- -- -- (1) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 39 -- -- -- 39 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- (2) -- -- (2) Deferred income taxes..................... -- -- -- (9) (9) Policyholders liabilities................. -- -- (10) -- (10) ------------- ------- ------------- ----------- -------------- BALANCE, DECEMBER 31, 2014................... $ 10 $ -- $ -- $ (4) $ 6 ============= ======= ============= =========== ==============
/(1)/Represents "transfers in" related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. F-23 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, 2015..................... $ 2,231 $ (122) $ (368) $ (610) $ 1,131 Net investment gains (losses) arising during the period................................. (1,562) -- -- -- (1,562) Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 5 -- -- -- 5 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- 40 -- -- 40 Deferred income taxes..................... -- -- -- 477 477 Policyholders liabilities................. -- -- 155 -- 155 ------------- --------- ------------- --------------- ---------------- BALANCE, DECEMBER 31, 2015................... $ 674 $ (82) $ (213) $ (133) $ 246 ============= ========= ============= =============== ================ BALANCE, JANUARY 1, 2014..................... $ 607 $ (107) $ (245) $ (90) $ 165 Net investment gains (losses) arising during the period................................. 1,606 -- -- -- 1,606 Reclassification adjustment for OTTI losses: Included in Net earnings (loss)........... 18 -- -- -- 18 Excluded from Net earnings (loss)/(1)/.... -- -- -- -- -- Impact of net unrealized investment gains (losses) on: DAC....................................... -- (15) -- -- (15) Deferred income taxes..................... -- -- -- (520) (520) Policyholders liabilities................. -- -- (123) -- (123) ------------- --------- ------------- --------------- ---------------- BALANCE, DECEMBER 31, 2014................... $ 2,231 $ (122) $ (368) $ (610) $ 1,131 ============= ========= ============= =============== ================
/(1)/Represents "transfers out" related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. F-24 The following tables disclose the fair values and gross unrealized losses of the 810 issues at December 31, 2015 and the 601 issues at December 31, 2014 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, 2015: ------------------ Fixed Maturity Securities: Public corporate........................... $ 3,091 $ 129 $ 359 $ 73 $ 3,450 $ 202 Private corporate.......................... 1,926 102 184 22 2,110 124 U.S. Treasury, government and agency....... 3,538 305 -- -- 3,538 305 States and political subdivisions.......... 19 1 -- -- 19 1 Foreign governments........................ 73 7 39 11 112 18 Commercial mortgage-backed................. 67 2 261 85 328 87 Residential mortgage-backed................ 11 -- 29 -- 40 -- Asset-backed............................... 11 -- 17 1 28 1 Redeemable preferred stock................. 43 -- 40 2 83 2 ---------- ------------ ---------- ---------- ---------- ---------- Total........................................ $ 8,779 $ 546 $ 929 $ 194 $ 9,708 $ 740 ========== ============ ========== ========== ========== ========== December 31, 2014: ------------------ Fixed Maturity Securities: Public corporate........................... $ 687 $ 18 $ 794 $ 33 $ 1,481 $ 51 Private corporate.......................... 627 11 254 9 881 20 U.S. Treasury, government and agency....... 280 6 373 20 653 26 States and political subdivisions.......... 21 -- -- -- 21 -- Foreign governments........................ 27 1 65 6 92 7 Commercial mortgage-backed................. 37 2 355 140 392 142 Residential mortgage-backed................ -- -- 35 -- 35 -- Asset-backed............................... -- -- 20 1 20 1 Redeemable preferred stock................. 42 -- 169 10 211 10 ---------- ------------ ---------- ---------- ---------- ---------- Total........................................ $ 1,721 $ 38 $ 2,065 $ 219 $ 3,786 $ 257 ========== ============ ========== ========== ========== ==========
The Company's investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of AXA Equitable, 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 0.3% of total investments. The largest exposures to a single issuer of corporate securities held at December 31, 2015 and 2014 were $157 million and $146 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 grade), 4 or 5 (below investment grade) or 6 (in or near default). At December 31, 2015 and 2014, respectively, approximately $1,310 million and $1,788 million, or 4.2% and 5.8%, of the $31,201 million and $30,795 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 of $97 million and $85 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, respectively, the $194 million and $219 million of gross unrealized losses of twelve months or more were concentrated in corporate and commercial mortgage-backed securities. In accordance with the policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2015 or 2014. As of December 31, 2015, 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. The Company's fixed maturity investment portfolio includes residential mortgage backed securities ("RMBS") backed by subprime and Alt-A residential mortgages, comprised of loans made by banks or mortgage lenders to residential borrowers with lower credit ratings. The criteria used to categorize such subprime borrowers include Fair Isaac Credit Organization ("FICO") scores, interest rates charged, debt-to-income ratios and loan-to-value ratios. Alt-A residential mortgages are mortgage loans where the risk profile falls between prime and subprime; F-25 borrowers typically have clean credit histories but the mortgage loan has an increased risk profile due to higher loan-to-value and debt-to-income ratios and/or inadequate documentation of the borrowers' income. At December 31, 2015 and 2014, respectively, the Company owned $7 million and $8 million in RMBS backed by subprime residential mortgage loans, and $6 million and $7 million in RMBS backed by Alt-A residential mortgage loans. RMBS backed by subprime and Alt-A residential mortgages are fixed income investments supporting General Account liabilities. At December 31, 2015, the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $8 million. At December 31, 2015 and 2014, respectively, the amortized cost of the Company's trading account securities was $6,866 million and $5,160 million with respective fair values of $6,805 million and $5,143 million. Also at December 31, 2015 and 2014, respectively, Other equity investments included the General Account's investment in Separate Accounts which had carrying values of $82 million and $197 million and costs of $72 million and $185 million as well as other equity securities with carrying values of $32 million and $38 million and costs of $34 million and $36 million. Net unrealized and realized gains (losses) on trading account equity securities are included in Net investment income (loss) in the consolidated statements of earnings (loss). The table below shows a breakdown of Net investment income from trading account securities during the year ended 2015 and 2014: NET INVESTMENT INCOME (LOSS) FROM TRADING SECURITIES
TWELVE MONTHS ENDED -------------------------- DECEMBER 31, December 31, 2015 2014 ------------ ------------ (IN MILLIONS) Net investment gains (losses) recognized during the period on securities held at the end of the period...................... $ (63) $ -- Net investment gains (losses) recognized on securities sold during the period.......... 20 22 ------------ ------------ Unrealized and realized gains (losses) on trading securities......................... (43) 22 Interest and dividend income from trading securities................................. 60 41 ------------ ------------ Net investment income (loss) from trading securities................................. $ 17 $ 63 ============ ============
MORTGAGE LOANS The payment terms of mortgage loans may from time to time be restructured or modified. Troubled Debt Restructurings The investment in troubled debt restructured mortgage loans, based on amortized cost, amounted to $16 million and $93 million at December 31, 2015 and 2014, respectively. Gross interest income on these loans included in net investment income (loss) totaled $1 million, $1 million and $2 million in 2015, 2014 and 2013, respectively. Gross interest income on restructured mortgage loans that would have been recorded in accordance with the original terms of such loans amounted to $0 million, $4 million and $7 million in 2015, 2014 and 2013, respectively. The TDR mortgage loan shown in the table below has been modified four times since 2011. The modifications were to extend the maturity from its original maturity of November 5, 2014 to December 5, 2016 and to extend interest only payments through maturity. In November 2015, the recorded investment was reduced by $45 million in conjunction with the sale of majority of the underlying collateral and $32 million from a charge-off. The remaining $16 million mortgage loan balance reflects the value of the remaining underlying collateral and cash held in escrow, supporting the mortgage loan. Since the fair market value of the underlying real estate and cash held in escrow collateral is the primary factor in determining the allowance for credit losses, modifications of loan terms typically have no direct impact on the allowance for credit losses, and therefore, no impact on the financial statements. TROUBLED DEBT RESTRUCTURING -- MODIFICATIONS DECEMBER 31, 2015
OUTSTANDING RECORDED INVESTMENT NUMBER ---------------------------------- OF LOANS PRE-MODIFICATION POST-MODIFICATION -------- ---------------- ----------------- (DOLLARS IN MILLIONS) Commercial mortgage loans.................... 1 $ 16 $ 16
There were no default payments on the above loan during 2015. There were no agricultural troubled debt restructuring mortgage loans in 2015. F-26 Valuation Allowances for Mortgage Loans: Allowance for credit losses for mortgage loans for 2015, 2014 and 2013 are as follows:
COMMERCIAL MORTGAGE LOANS ------------------------- 2015 2014 2013 ------- ------- ------- (IN MILLIONS) ALLOWANCE FOR CREDIT LOSSES: Beginning Balance, January 1,................ $ 37 $ 42 $ 34 Charge-offs............................... (32) (14) -- Recoveries................................ (1) -- (2) Provision................................. 2 9 10 ------- ------- ------- Ending Balance, December 31,................. $ 6 $ 37 $ 42 ======= ======= ======= Ending Balance, December 31,: Individually Evaluated for Impairment..... $ 6 $ 37 $ 42 ======= ======= =======
There were no allowances for credit losses for agricultural mortgage loans in 2015, 2014 and 2013. 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, 2015 and 2014, respectively. 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. MORTGAGE LOANS BY LOAN-TO-VALUE AND DEBT SERVICE COVERAGE RATIOS DECEMBER 31, 2015
DEBT SERVICE COVERAGE RATIO ---------------------------------------------------- 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) COMMERCIAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 533 $ -- $ 102 $ 12 $ 24 $ -- $ 671 50% - 70%.................................... 1,392 353 741 853 77 -- 3,416 70% - 90%.................................... 141 -- 206 134 124 46 651 90% plus..................................... 63 -- -- 46 -- -- 109 ---------- ------- -------- -------- ------- ------- --------- Total Commercial Mortgage Loans.............. $ 2,129 $ 353 $ 1,049 $ 1,045 $ 225 $ 46 $ 4,847 ========== ======= ======== ======== ======= ======= ========= AGRICULTURAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 204 $ 116 $ 277 $ 432 $ 256 $ 51 $ 1,336 50% - 70%.................................... 146 80 192 298 225 47 988 70% - 90%.................................... -- -- 2 4 -- -- 6 90% plus..................................... -- -- -- -- -- -- -- ---------- ------- -------- -------- ------- ------- --------- Total Agricultural Mortgage Loans............ $ 350 $ 196 $ 471 $ 734 $ 481 $ 98 $ 2,330 ========== ======= ======== ======== ======= ======= ========= TOTAL MORTGAGE LOANS/(1)/ 0% - 50%..................................... $ 737 $ 116 $ 379 $ 444 $ 280 $ 51 $ 2,007 50% - 70%.................................... 1,538 433 933 1,151 302 47 4,404 70% - 90%.................................... 141 -- 208 138 124 46 657 90% plus..................................... 63 -- -- 46 -- -- 109 ---------- ------- -------- -------- ------- ------- --------- Total Mortgage Loans......................... $ 2,479 $ 549 $ 1,520 $ 1,779 $ 706 $ 144 $ 7,177 ========== ======= ======== ======== ======= ======= =========
/(1)/The debt service coverage ratio is calculated using the most recently reported net 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. F-27 Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios December 31, 2014
Debt Service Coverage Ratio -------------------------------------------------- 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)/ --------- ------- -------- -------- ------- ------ -------- Commercial Mortgage Loans/(1)/ (In Millions) 0% - 50%..................................... $ 335 $ -- $ -- $ 59 $ 34 $ -- $ 428 50% - 70%.................................... 963 440 872 839 54 -- 3,168 70% - 90%.................................... 211 -- 61 265 79 -- 616 90% plus..................................... 156 -- -- -- -- 47 203 --------- ------- -------- -------- ------- ------ -------- Total Commercial Mortgage Loans.............. $ 1,665 $ 440 $ 933 $ 1,163 $ 167 $ 47 $ 4,415 ========= ======= ======== ======== ======= ====== ======== Agricultural Mortgage Loans/(1)/ 0% - 50%..................................... $ 184 $ 100 $ 232 $ 408 $ 206 $ 50 $ 1,180 50% - 70%.................................... 143 87 201 223 204 47 905 70% - 90%.................................... -- -- -- -- -- -- -- 90% plus..................................... -- -- -- -- -- -- -- --------- ------- -------- -------- ------- ------ -------- Total Agricultural Mortgage Loans............ $ 327 $ 187 $ 433 $ 631 $ 410 $ 97 $ 2,085 ========= ======= ======== ======== ======= ====== ======== Total Mortgage Loans/(1)/ 0% - 50%..................................... $ 519 $ 100 $ 232 $ 467 $ 240 $ 50 $ 1,608 50% - 70%.................................... 1,106 527 1,073 1,062 258 47 4,073 70% - 90%.................................... 211 -- 61 265 79 -- 616 90% plus..................................... 156 -- -- -- -- 47 203 --------- ------- -------- -------- ------- ------ -------- Total Mortgage Loans......................... $ 1,992 $ 627 $ 1,366 $ 1,794 $ 577 $ 144 $ 6,500 ========= ======= ======== ======== ======= ====== ========
/(1)/The debt service coverage ratio is calculated using the most recently reported net 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, 2015 and 2014, respectively. AGE ANALYSIS OF PAST DUE MORTGAGE LOAN
RECORDED INVESTMENT TOTAL (GREATER THAN) 90 DAYS 30-59 60-89 90 DAYS FINANCING AND DAYS DAYS OR (GREATER THAN) TOTAL CURRENT RECEIVABLES ACCRUING ----- ----- ----------------- ----- -------- ----------- ---------------------- (IN MILLIONS) DECEMBER 31, 2015: ------------------ Commercial................................. $ -- $ -- $ 30 $ 30 $ 4,817 $ 4,847 $ -- Agricultural............................... 12 7 4 23 2,307 2,330 4 ----- ----- ------- ----- -------- ---------- ---------- TOTAL MORTGAGE LOANS......................... $ 12 $ 7 $ 34 $ 53 $ 7,124 $ 7,177 $ 4 ===== ===== ======= ===== ======== ========== ========== December 31, 2014: ------------------ Commercial................................. $ -- $ -- $ -- $ -- $ 4,415 $ 4,415 $ -- Agricultural............................... 1 7 3 11 2,074 2,085 3 ----- ----- ------- ----- -------- ---------- ---------- Total Mortgage Loans......................... $ 1 $ 7 $ 3 $ 11 $ 6,489 $ 6,500 $ 3 ===== ===== ======= ===== ======== ========== ==========
F-28 The following table provides information relating to impaired mortgage loans at December 31, 2015 and 2014, respectively. IMPAIRED MORTGAGE LOANS
UNPAID AVERAGE INTEREST RECORDED PRINCIPAL RELATED RECORDED INCOME INVESTMENT BALANCE ALLOWANCE INVESTMENT/(1)/ RECOGNIZED ---------- ---------- ---------- --------------- ---------- (IN MILLIONS) DECEMBER 31, 2015: ------------------ With no related allowance recorded: Commercial mortgage loans -- other........................... $ 46 $ 46 $ -- $ 15 $ -- Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- TOTAL.............................. $ 46 $ 46 $ -- $ 15 $ -- ========== ========== ========== =============== ========== With related allowance recorded: Commercial mortgage loans -- other........................... $ 63 $ 63 $ (6) $ 137 $ 4 Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- TOTAL.............................. $ 63 $ 63 $ (6) $ 137 $ 4 ========== ========== ========== =============== ========== December 31, 2014: ------------------ With no related allowance recorded: Commercial mortgage loans -- other........................... $ -- $ -- $ -- $ -- $ -- Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- Total.............................. $ -- $ -- $ -- $ -- $ -- ========== ========== ========== =============== ========== With related allowance recorded: Commercial mortgage loans -- other........................... $ 156 $ 156 $ (37) $ 148 $ 2 Agricultural mortgage loans...... -- -- -- -- -- ---------- ---------- ---------- --------------- ---------- Total.............................. $ 156 $ 156 $ (37) $ 148 $ 2 ========== ========== ========== =============== ==========
/(1)/Represents a five-quarter average of recorded amortized cost. EQUITY METHOD INVESTMENTS Included in other equity investments are limited partnership interests and investment companies accounted for under the equity method with a total carrying value of $1,363 million and $1,490 million, respectively, at December 31, 2015 and 2014. The Company's total equity in net earnings (losses) for these limited partnership interests was $71 million, $206 million and $206 million, respectively, for 2015, 2014 and 2013. 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 the NYDFS. 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, swaptions, variance swaps, equity options as well as repo transactions, that collectively are managed in an effort to reduce the economic impact of unfavorable changes in guaranteed benefits' exposures attributable to movements in capital markets. Derivatives utilized to hedge exposure to Variable Annuities with Guarantee Features The Company has issued and continues to offer certain variable annuity products with GMDB, GMIB and GIB features. The Company had previously issued certain variable annuity products with GWBL, guaranteed minimum withdrawal benefit ("GMWB") and GMAB features (collectively, "GWBL and Other 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 benefits, in the event of annuitization, being higher than what accumulated policyholders' account balances would support, taking into F-29 account the relationship between current annuity purchase rates and the GMIB guaranteed annuity purchase rates. The risk associated with the GIB and GWBL and Other Features is that under-performance of the financial markets could result in the GIB and GWBL and Other Features' benefits being higher than what accumulated policyholders' account balances would support. For GMDB, GMIB, GIB and GWBL and Other Features, the Company retains certain risks including basis, credit spread and some volatility risk and risk associated with actual versus expected assumptions for mortality, lapse and surrender, withdrawal and contractholder election rates, among other things. The derivative contracts are managed to correlate with changes in the value of the GMDB, GMIB, GIB and GWBL and Other 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. The Company has in place a hedge program utilizing interest rate swaps to partially protect the overall profitability of future variable annuity sales against declining interest rates. 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(R) ("SCS") variable annuity, Structured Investment Option in the EQUI-VEST(R) variable annuity series ("SIO"), Market Stabilizer Option(R) ("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. Derivatives utilized to hedge risks associated with interest margins on Interest Sensitive Life and Annuity Contracts Margins or "spreads" on interest-sensitive life insurance and annuity contracts are affected by interest rate fluctuations as the yield on portfolio investments, primarily fixed maturities, is intended to support required payments under these contracts, including interest rates credited to their policy and contract holders. From time to time, the Company uses interest rate swaptions and other instruments to reduce the risk associated with minimum guarantees on these interest-sensitive contracts. At December 31, 2015 and 2014, there were no positions outstanding for these programs. Derivatives utilized to hedge equity market risks associated with the General Account's seed money investments in Separate Accounts, retail mutual funds and Separate Account fee revenue fluctuations The Company's General Account seed money investments in Separate Account equity funds and retail mutual funds exposes the Company to market risk, including equity market risk, which is partially hedged through equity-index futures contracts to minimize such risk. In second quarter 2015, the Company entered into futures on equity indices to mitigate the impact on net earnings from Separate Account fee revenue fluctuations due to movements in the equity markets. These positions partially cover fees expected to be earned through the current year from the Company's Separate Account products. Derivatives utilized for General Account Investment Portfolio Beginning in the second quarter of 2013, the Company implemented a strategy in its General Account investment portfolio to replicate the credit exposure of fixed maturity securities otherwise permissible 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 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 has transacted the sale of CDSs exclusively 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 F-30 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-equivalent of the derivative notional amount. The Standard North American CDS Contract ("SNAC") under which the Company executes these CDS sales transactions does not contain recourse provisions for recovery of amounts paid under the credit derivative. Periodically, the Company purchases 30-year, Treasury Inflation Protected Securities ("TIPS") and other sovereign inflation bonds as General Account investments and enters into asset swaps, to result in payment of the variable principal at maturity and semi-annual coupons of the bonds to the swap counterparty (pay variable) in return for fixed amounts (receive fixed). These asset 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. In third quarter of 2014, 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 credit default swap index ("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 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) from derivative instruments. 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 OR FOR THE YEAR ENDED DECEMBER 31, 2015
FAIR VALUE ------------------------ GAINS (LOSSES) NOTIONAL ASSET LIABILITY REPORTED IN AMOUNT DERIVATIVES DERIVATIVES EARNINGS (LOSS) --------- ----------- ------------ --------------- (IN MILLIONS) FREESTANDING DERIVATIVES: Equity contracts:/(1)/ Futures.................................... $ 7,089 $ 2 $ 3 $ (84) Swaps...................................... 1,359 8 21 (45) Options.................................... 7,358 1,042 652 14 Interest rate contracts:/(1)/ Floors..................................... 1,800 61 -- 12 Swaps...................................... 13,718 351 108 (8) Futures.................................... 8,685 -- -- (81) Swaptions.................................. -- -- -- 118 Credit contracts:/(1)/ Credit default swaps....................... 2,442 16 38 (14) Other freestanding contracts:/(1)/ Foreign currency Contracts................. 263 5 4 7 --------------- NET INVESTMENT INCOME (LOSS)................. (81) --------------- EMBEDDED DERIVATIVES: GMIB reinsurance contracts................... -- 10,570 -- (141) GIB and GWBL and other features/(2)/......... -- -- 184 (56) SCS, SIO, MSO and IUL indexed features/(3)/.. -- -- 310 (38) --------- ----------- ------------ --------------- Balances, December 31, 2015.................. $ 42,714 $ 12,055 $ 1,320 $ (260) ========= =========== ============ ===============
/(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 and SIO indexed features are reported in Policyholders' account balances; MSO and IUL indexed features are reported in Future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. F-31 Derivative Instruments by Category At or For the Year Ended December 31, 2014
Fair Value ------------------------ Gains (Losses) Notional Asset Liability Reported In Amount Derivatives Derivatives Earnings (Loss) --------- ----------- ------------ ------------------ (In Millions) Freestanding derivatives: Equity contracts:/(1)/ Futures.................................... $ 5,933 $ 1 $ 2 $ (522) Swaps...................................... 1,169 22 15 (88) Options.................................... 6,896 1,215 742 196 Interest rate contracts:/(1)/ Floors..................................... 2,100 120 -- 9 Swaps...................................... 11,608 605 15 1,507 Futures.................................... 10,647 -- -- 459 Swaptions.................................. 4,800 72 -- 37 Credit contracts:/(1)/ Credit default swaps....................... 1,942 9 27 4 Other freestanding contracts:/(1)/ Foreign currency Contracts................. 149 2 -- 3 ------------------ Net investment income (loss)................. 1,605 ------------------ Embedded derivatives: GMIB reinsurance contracts................... -- 10,711 -- 3,964 GIB and GWBL and other features/(2)/......... -- -- 128 (128) SCS, SIO, MSO and IUL indexed features/(3)/.. -- -- 380 (199) --------- ----------- ------------ ------------------ Balances, December 31, 2014.................. $ 45,244 $ 12,757 $ 1,309 $ 5,242 ========= =========== ============ ==================
/(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 and SIO indexed features are reported in Policyholders' account balances; MSO and IUL indexed features are reported in Future policyholders' benefits and other policyholders' liabilities in the consolidated balance sheets. EQUITY-BASED AND TREASURY FUTURES CONTRACTS All outstanding equity-based and treasury futures contracts at December 31, 2015 are exchange-traded and net settled daily in cash. At December 31, 2015, the Company had open exchange-traded futures positions on: (i) the S&P 500, Russell 2000, NASDAQ 100 and Emerging Market indices, having initial margin requirements of $276 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 $33 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 $49 million. CREDIT RISK Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measure of credit risk. A derivative with positive fair value (a derivative asset) indicates existence of credit risk because the counterparty would owe money to the Company if the contract were closed at the reporting date. Alternatively, a derivative contract with negative fair value (a derivative liability) indicates the Company would owe money to the counterparty if the contract were closed at the reporting date. To reduce credit exposures in OTC derivative transactions the Company generally enters into master agreements that provide for a netting of financial exposures with the counterparty and allow for collateral arrangements as further described below under "ISDA Master Agreements." The Company further controls and minimizes its counterparty exposure through a credit appraisal and approval process. F-32 ISDA MASTER AGREEMENTS NETTING PROVISIONS. The standardized "ISDA Master Agreement" under which the Company conducts its OTC derivative transactions includes provisions for payment netting. In the normal course of business activities, if there is more than one derivative transaction with a single counterparty, the Company will set-off the cash flows of those derivatives into a single amount to be exchanged in settlement of the resulting net payable or receivable with that counterparty. In the event of default, insolvency, or other similar event pre-defined under the ISDA Master Agreement that would result in termination of OTC derivatives transactions before their maturity, netting procedures would be applied to calculate a single net payable or receivable with the counterparty. COLLATERAL ARRANGEMENTS. The Company generally has executed a CSA under the ISDA Master Agreement it maintains with each of its 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. These CSAs are bilateral agreements that require collateral postings by the party "out-of-the-money" or in a net derivative liability position. Various thresholds for the amount and timing of collateralization of net liability positions are applicable. Consequently, the credit exposure of the Company's OTC derivative contracts is limited to the net positive estimated fair value of those contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to CSAs. Derivatives are recognized at fair value in the consolidated balance sheets and are reported either as assets in Other invested assets or as liabilities in Other liabilities, except for embedded insurance-related derivatives as described above and derivatives transacted with a related counterparty. 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, 2015 and 2014, respectively, the Company held $655 million and $1,225 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. This unrestricted cash collateral is reported in Cash and cash equivalents, and the obligation to return it is reported in Other liabilities in the consolidated balance sheets. The aggregate fair value of all collateralized derivative transactions that were in a liability position with trade counterparties December 31, 2015 and 2014, respectively, were $5 million and $28 million, for which the Company posted collateral of $5 million and $36 million at December 31, 2015 and 2014, respectively, in the normal operation of its collateral arrangements. Certain of the Company's ISDA Master Agreements contain contingent provisions that permit the counterparty to terminate the ISDA Master Agreement if the Company's credit rating falls below a specified threshold, however, the occurrence of such credit event would not impose additional collateral requirements. 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 specificities of each respective counterparty. These agreements generally provide detail as to the nature of the transaction, including provisions for payment netting, establish parameters concerning the ownership and custody of the collateral securities, including the right to substitute collateral during the term of the agreement, and provide for remedies in the event of default by either party. Amounts due to/from the same counterparty under these arrangements generally would be netted in the event of default and subject to rights of set-off in bankruptcy. 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. The Company obtains or posts collateral generally in the form of cash, U.S. Treasury, corporate and government agency securities. The fair value of the securities to be repurchased or resold are monitored on a daily basis with additional collateral posted or obtained as necessary. Securities to be repurchased or resold are the same, or substantially the same, as those initially transacted under the arrangement. At December 31, 2015 and 2014, the balance outstanding under reverse repurchase transactions was $79 million and $0 million, respectively. At December 31, 2015 and 2014, the balance outstanding under securities repurchase transactions was $1,890 million and $950 million, respectively. The Company utilized these repurchase agreements for asset liability management purposes. For other instruments used for asset liability management purposes, see "Policyholders' Account Balances and Future Policy Benefits" included in Note 2. F-33 The following table presents information about the Insurance Segment's offsetting of financial assets and liabilities and derivative instruments at December 31, 2015. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES AND DERIVATIVE INSTRUMENTS AT DECEMBER 31, 2015
GROSS GROSS AMOUNTS NET AMOUNTS AMOUNTS OFFSET IN THE PRESENTED IN THE RECOGNIZED BALANCE SHEETS BALANCE SHEETS ---------- --------------- ----------------- (IN MILLIONS) ASSETS/(1)/ DESCRIPTION Derivatives: Equity contracts............................. $ 1,049 $ 673 $ 376 Interest rate contracts...................... 389 104 285 Credit contracts............................. 14 37 (23) ---------- --------------- ----------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 1,452 814 638 Total Derivatives, not subject to an ISDA Master Agreement........................... 20 -- 20 ---------- --------------- ----------------- Total Derivatives.......................... 1,472 814 658 Other financial instruments/(2)(4)/.......... 1,271 -- 1,271 ---------- --------------- ----------------- Other invested assets/(2)/................. $ 2,743 $ 814 $ 1,929 ========== =============== ================= Securities purchased under agreement to resell..................................... $ 79 $ -- $ 79 ========== =============== =================
GROSS GROSS AMOUNTS NET AMOUNTS AMOUNTS OFFSET IN THE PRESENTED IN THE RECOGNIZED BALANCE SHEETS BALANCE SHEETS ---------- --------------- ----------------- (IN MILLIONS) LIABILITIES/(3)/ DESCRIPTION Derivatives: Equity contracts............................. $ 673 $ 673 $ -- Interest rate contracts...................... 104 104 -- Credit contracts............................. 37 37 -- ---------- --------------- ----------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 814 814 -- Total Derivatives, not subject to an ISDA Master Agreement........................... -- -- -- ---------- --------------- ----------------- Total Derivatives.......................... 814 814 -- Other financial liabilities.................. 2,586 -- 2,586 ---------- --------------- ----------------- Other liabilities.......................... $ 3,400 $ 814 $ 2,586 ========== =============== ================= Securities sold under agreement to repurchase $ 1,890 $ -- $ 1,890 ========== =============== =================
/(1)/Excludes Investment Management segment's $13 million net derivative assets, $6 million long exchange traded options and $75 million of securities borrowed. /(2)/Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's $12 million net derivative liabilities, $1 million short exchange traded options and $10 million of securities loaned. /(4)/Includes margin of $(2) million related to derivative instruments. F-34 The following table presents information about the Insurance segment's gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2015. GROSS COLLATERAL AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 2015
COLLATERAL (RECEIVED)/HELD NET AMOUNTS ------------------------- PRESENTED IN THE FINANCIAL NET BALANCE SHEETS INSTRUMENTS CASH AMOUNTS ---------------------- ------------ -------- --------- (IN MILLIONS) ASSETS/(1)/ Counterparty A............................... $ 52 $ -- $ (52) $ -- Counterparty B............................... 9 -- (7) 2 Counterparty C............................... 61 -- (58) 3 Counterparty D............................... 222 -- (218) 4 Counterparty E............................... 53 -- (53) -- Counterparty F............................... (2) -- 2 -- Counterparty G............................... 129 -- (129) -- Counterparty H............................... 16 (11) (5) -- Counterparty I............................... 44 -- (39) 5 Counterparty J............................... 19 -- (13) 6 Counterparty K............................... 17 -- (17) -- Counterparty L............................... 7 -- (7) -- Counterparty M............................... 11 -- (10) 1 Counterparty N............................... 20 -- -- 20 Counterparty Q............................... -- -- -- -- Counterparty T............................... (3) -- 3 -- Counterparty U............................... -- -- 1 1 Counterparty V............................... 3 -- (3) -- ---------------------- ------------ -------- --------- Total Derivatives.......................... $ 658 $ (11) $ (605) $ 42 Other financial instruments/(2)(4)/.......... 1,271 -- -- 1,271 ---------------------- ------------ -------- --------- OTHER INVESTED ASSETS/(2)/................. $ 1,929 $ (11) $ (605) $ 1,313 ====================== ============ ======== ========= Counterparty M............................... $ 28 $ (28) $ -- $ -- Counterparty V............................... 51 (51) -- -- ---------------------- ------------ -------- --------- Securities purchased under agreement to resell.................................... $ 79 $ (79) $ -- $ -- ====================== ============ ======== ========= COLLATERAL (RECEIVED)/HELD NET AMOUNTS ------------------------- PRESENTED IN THE FINANCIAL NET BALANCE SHEETS INSTRUMENTS CASH AMOUNTS ---------------------- ------------ -------- --------- (IN MILLIONS) LIABILITIES/(3)/ Counterparty D............................... $ 234 $ (234) $ -- -- Counterparty C............................... 1,033 (1,016) (17) -- Counterparty M............................... 623 (611) (12) -- ---------------------- ------------ -------- --------- Securities sold under agreement to repurchase................................ $ 1,890 $ (1,861) $ (29) $ -- ====================== ============ ======== =========
/(1)/Excludes Investment Management segment's cash collateral received of $2 million related to derivative assets and $75 million related to securities borrowed. /(2)/Includes $141 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's cash collateral pledged of $12 million related to derivative liabilities and $10 million related to securities loaned. /(4)/Includes margin of $(2) million related to derivative instruments. F-35 The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2015. REPURCHASE AGREEMENT ACCOUNTED FOR AS SECURED BORROWINGS/(1)/
AT DECEMBER 31, 2015 ------------------------------------------------------- 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 U.S. Treasury and agency securities....... $ -- $ 1,865 $ 25 $ -- $ 1,890 ------------- ---------- -------- ------------ -------- Total........................................ $ -- $ 1,865 $ 25 $ -- $ 1,890 ------------- ---------- -------- ------------ -------- SECURITIES PURCHASED UNDER AGREEMENT TO RESELL Corporate securities...................... $ -- $ 79 $ -- $ -- $ 79 ------------- ---------- -------- ------------ -------- Total........................................ $ -- $ 79 $ -- $ -- $ 79 ------------- ---------- -------- ------------ --------
/(1)/Excludes Investment Management segment's $75 million of securities borrowed. The following table presents information about the Insurance segment's offsetting of financial assets and liabilities and derivative instruments at December 31, 2014. Offsetting of Financial Assets and Liabilities and Derivative Instruments At December 31, 2014
Gross Gross Amounts Net Amounts Amounts Offset in the Presented in the Recognized Balance Sheets Balance Sheets ---------- -------------- ---------------- (In Millions) ASSETS/(1)/ Description Derivatives: Equity contracts............................. $ 1,236 $ 753 $ 483 Interest rate contracts...................... 755 12 743 Credit contracts............................. 7 27 (20) ---------- ------------- -------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 1,998 792 1,206 Total Derivatives, not subject to an ISDA Master Agreement........................... 40 -- 40 ---------- ------------- -------------- Total Derivatives.......................... 2,038 792 1,246 Other financial instruments/(2)/............. 852 -- 852 ---------- ------------- -------------- Other invested assets/(2)/................. $ 2,890 $ 792 $ 2,098 ========== ============= ============== LIABILITIES/(3)/ Description Derivatives: Equity contracts............................. $ 753 $ 753 $ -- Interest rate contracts...................... 12 12 -- ---------- ------------- -------------- Total Derivatives, subject to an ISDA Master Agreement.......................... 765 765 -- Total Derivatives, not subject to an ISDA Master Agreement........................... -- -- -- ---------- ------------- -------------- Total Derivatives.......................... 765 765 -- Other financial liabilities.................. 2,939 -- 2,939 ---------- ------------- -------------- Other liabilities.......................... $ 3,704 $ 765 $ 2,939 ---------- ------------- -------------- Securities sold under agreement to repurchase $ 950 $ -- $ 950 ========== ============= ==============
/(1)/Excludes Investment Management segment's $8 million net derivative assets, $22 million long exchange traded options and $158 million of securities borrowed. /(2)/Includes $120 million related to accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's $9 million net derivative liabilities, $7 million short exchange traded options and $34 million of securities loaned. F-36 The following table presents information about the Insurance segment's gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2014. Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets At December 31, 2014
Collateral (Received)/Held Net Amounts ------------------------ Presented in the Financial Net Balance Sheets Instruments Cash Amounts ---------------- ----------- ----------- ---------- (In Millions) ASSETS/(1)/ Counterparty A............................... $ 62 $ -- $ (62) $ -- Counterparty B............................... 102 -- (95) 7 Counterparty C............................... 111 -- (110) 1 Counterparty D............................... 228 -- (224) 4 Counterparty E............................... 60 -- (59) 1 Counterparty F............................... 63 -- (60) 3 Counterparty G............................... 145 (145) -- -- Counterparty H............................... 31 (31) -- -- Counterparty I............................... 136 -- (134) 2 Counterparty J............................... 28 -- (22) 6 Counterparty K............................... 44 -- (44) -- Counterparty L............................... 113 (113) -- -- Counterparty M............................... 76 -- (68) 8 Counterparty N............................... 40 -- -- 40 Counterparty Q............................... 4 -- (4) -- Counterparty T............................... 3 -- (3) -- --------------- ---------- ----------- ---------- Total Derivatives.......................... $ 1,246 $ (289) $ (885) $ 72 Other financial instruments/(2)/............. 852 -- -- 852 --------------- ---------- ----------- ---------- Other invested assets/(2)/................. $ 2,098 $ (289) $ (885) $ 924 =============== ========== =========== ========== LIABILITIES/(3)/ Counterparty D............................... $ 450 $ (450) $ -- -- Counterparty C............................... 500 (500) -- -- --------------- ---------- ----------- ---------- Securities sold under agreement to repurchase................................ $ 950 $ (950) $ -- $ -- =============== ========== =========== ==========
/(1)/Excludes Investment Management segment's cash collateral received of $1 million related to derivative assets and $158 million related to securities borrowed. /(2)/Includes $120 million of accrued interest related to derivative instruments reported in other assets on the consolidated balance sheets. /(3)/Excludes Investment Management segment's cash collateral pledged of $10 million related to derivative liabilities and $34 million related to securities loaned. F-37 NET INVESTMENT INCOME (LOSS) The following table breaks out Net investment income (loss) by asset category:
2015 2014 2013 -------- -------- -------- (IN MILLIONS) Fixed maturities............................. $ 1,420 $ 1,431 $ 1,462 Mortgage loans on real estate................ 338 306 284 Repurchase agreement......................... 1 -- -- Other equity investments..................... 84 200 228 Policy loans................................. 213 216 219 Derivative investments....................... (81) 1,605 (2,866) Trading securities........................... 17 63 54 Other investment income...................... 40 49 50 -------- -------- -------- Gross investment income (loss)............. 2,032 3,870 (569) Investment expenses.......................... (53) (53) (57) Interest expense............................. (3) (2) (3) -------- -------- -------- Net Investment Income (Loss)................. $ 1,976 $ 3,815 $ (629) ======== ======== ========
For 2015, 2014 and 2013, respectively, Net investment income (loss) from derivatives included $474 million, $899 million and $(2,829) million of realized gains (losses) on contracts closed during those periods and $(555) million, $706 million and $(37) million of unrealized gains (losses) on derivative positions at each respective year end. INVESTMENT GAINS (LOSSES), NET Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) Fixed maturities............................. $ (17) $ (54) $ (75) Mortgage loans on real estate................ (1) (3) (7) Other equity investments..................... (5) (2) (17) Other........................................ 3 1 -- ------ ------ ------ Investment Gains (Losses), Net............... $ (20) $ (58) $ (99) ====== ====== ======
For 2015, 2014 and 2013, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders' account balances totaled $4 million, $5 million and $8 million. 4) GOODWILL AND OTHER INTANGIBLE ASSETS The carrying value of goodwill related to AB totaled $3,562 million and $3,562 million at December 31, 2015 and 2014, respectively. The Company annually tests this goodwill for recoverability at December 31. The first step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of its investment in AB, the reporting unit, to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not considered to be impaired and the second step of the impairment test is not performed. However, if the carrying value of the reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed by measuring the amount of impairment loss only if the result indicates a potential impairment. The second step compares the implied fair value of the reporting unit to the aggregated fair values of its individual assets and liabilities to determine the amount of impairment, if any. The Company also assesses this goodwill for recoverability at each interim reporting period in consideration of facts and circumstances that may indicate a shortfall of the fair value of its investment in AB as compared to its carrying value and thereby require re-performance of its annual impairment testing. The Company primarily uses a discounted cash flow valuation technique to measure the fair value of its investment in AB for purpose of goodwill impairment testing. The cash flows used in this technique are sourced from AB's current business plan and projected thereafter over the estimated life of the goodwill asset by applying an annual growth rate assumption. The present value amount that results from discounting these expected cash flows is then adjusted to reflect the noncontrolling interest in AB as well as taxes incurred at the Company level in order to determine the fair value of its investment in AB. At December 31, 2015 and 2014, the Company determined that goodwill was not impaired as the fair value of its investment in AB exceeded its carrying value at each respective date. Similarly, no impairments resulted from the Company's interim assessments of goodwill recoverability during the periods then ended. F-38 The gross carrying amount of AB related intangible assets was $610 million and $610 million at December 31, 2015 and 2014, respectively and the accumulated amortization of these intangible assets was $439 million and $411 million at December 31, 2015 and 2014, respectively. Amortization expense related to the AB intangible assets totaled $28 million, $27 million and $24 million for 2015, 2014 and 2013, respectively, and estimated amortization expense for each of the next five years is expected to be approximately $29 million. At December 31, 2015 and 2014, respectively, net deferred sales commissions totaled $99 million and $118 million and are included within Other assets. The estimated amortization expense of deferred sales commissions, based on the December 31, 2015 net asset balance for each of the next five years is $41 million, $32 million, $21 million, $5 million and $0 million. The Company tests the deferred sales commission asset for impairment quarterly by comparing undiscounted future cash flows to the recorded value, net of accumulated amortization. Each quarter, significant assumptions used to estimate the future cash flows are updated to reflect management's consideration of current market conditions on expectations made with respect to future market levels and redemption rates. As of December 31, 2015, the Company determined that the deferred sales commission asset was not impaired. On June 20, 2014, AB acquired an approximate 82.0% ownership interest in CPH Capital Fondsmaeglerselskab A/S ("CPH"), a Danish asset management firm that managed approximately $3,000 million in global core equity assets for institutional investors, for a cash payment of $64 million and a contingent consideration payable of $9 million. The excess of the purchase price over the fair value of identifiable assets acquired resulted in the recognition of $58 million of goodwill. AB recorded $24 million of finite-lived intangible assets relating to separately-managed account relationships and $4 million of indefinite-lived intangible assets relating to an acquired fund's investment contract. AB also recorded redeemable non-controlling interest of $17 million relating to the fair value of the portion of CPH AB does not own. During 2015, AB purchased additional shares of CPH, bringing AB's ownership interest to 85.0% as of December 31, 2015. On December 12, 2013, AB acquired W.P. Stewart & Co., Ltd. ("WPS"), an equity investment manager that, as of December 31, 2015, managed approximately $2,000 million in U.S., Global and EAFE concentrated growth equity strategies for clients, primarily in the U.S. and Europe. On the acquisition date, AB made a cash payment of $12 per share for the approximate 4.9 million WPS shares outstanding and issued to WPS shareholders transferable Contingent Value Rights ("CVRs") entitling the holders to an additional $4 per share if the assets under management in the acquired WPS investment services exceed $5,000 million on or before the third anniversary of the acquisition date. The excess of the purchase price over the fair value of identifiable assets acquired resulted in the recognition of $32 million of goodwill. AB also recorded $8 million of indefinite-lived intangible assets relating to the acquired fund's investment contracts and $14 million of definite-lived intangible assets relating to separately managed account relationships. As of the acquisition date, AB recorded a contingent consideration payable of $17 million in regard to the CVRs. Capitalized Software Capitalized software, net of accumulated amortization, amounted to $157 million and $163 million at December 31, 2015 and 2014, respectively. Amortization of capitalized software in 2015, 2014 and 2013 were $55 million, $50 million and $119 million (including $45 million of accelerated amortization), respectively. 5) CLOSED BLOCK Summarized financial information for the AXA Equitable Closed Block is as follows:
DECEMBER 31, ----------------- 2015 2014 -------- -------- (IN MILLIONS) CLOSED BLOCK LIABILITIES: Future policy benefits, policyholders' account balances and other................. $ 7,363 $ 7,537 Policyholder dividend obligation............. 81 201 Other liabilities............................ 100 117 -------- -------- Total Closed Block liabilities............... 7,544 7,855 -------- -------- ASSETS DESIGNATED TO THE CLOSED BLOCK: Fixed maturities, available for sale, at fair value (amortized cost of $4,426 and $4,829).................................... 4,599 5,143 Mortgage loans on real estate................ 1,575 1,407 Policy loans................................. 881 912 Cash and other invested assets............... 49 14 Other assets................................. 258 176 -------- -------- Total assets designated to the Closed Block.. 7,362 7,652 -------- -------- Excess of Closed Block liabilities over assets designated to the Closed Block...... 182 203 Amounts included in accumulated other comprehensive income (loss): Net unrealized investment gains (losses), net of deferred income tax (expense) benefit of $(36) and $(43) and policyholder dividend obligation of $(81) and $(201)................................. 67 80 -------- -------- Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities... $ 249 $ 283 ======== ========
F-39 AXA Equitable's Closed Block revenues and expenses follow:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) REVENUES: Premiums and other income.................... $ 262 $ 273 $ 286 Investment income (loss)..................... 368 378 402 Net investment gains (losses)................ 2 (4) (11) ------ ------ ------ Total revenues............................... 632 647 677 ------ ------ ------ BENEFITS AND OTHER DEDUCTIONS: Policyholders' benefits and dividends........ 576 597 637 Other operating costs and expenses........... 4 4 1 ------ ------ ------ Total benefits and other deductions.......... 580 601 638 ------ ------ ------ Net revenues, before income taxes............ 52 46 39 Income tax (expense) benefit................. (18) (16) (14) ------ ------ ------ Net Revenues (Losses)........................ $ 34 $ 30 $ 25 ====== ====== ======
A reconciliation of AXA Equitable's policyholder dividend obligation follows:
DECEMBER 31, -------------- 2015 2014 ------ ------ (IN MILLIONS) Balances, beginning of year.................. $ 201 $ 128 Unrealized investment gains (losses)......... (120) 73 ------ ------ Balances, End of year........................ $ 81 $ 201 ====== ======
6) CONTRACTHOLDER BONUS INTEREST CREDITS Changes in the deferred asset for contractholder bonus interest credits are as follows:
DECEMBER 31, -------------- 2015 2014 ------ ------ (IN MILLIONS) Balance, beginning of year................... $ 383 $ 518 Contractholder bonus interest credits deferred................................... 17 15 Balance true-up.............................. 174 -- Amortization charged to income............... (40) (150) ------ ------ Balance, End of Year......................... $ 534 $ 383 ====== ======
F-40 7) FAIR VALUE DISCLOSURES Assets and liabilities measured at fair value on a recurring basis are summarized below. At December 31, 2015 and 2014, 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. FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2015
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ---------- --------- --------- ---------- (IN MILLIONS) ASSETS Investments: Fixed maturities, available-for-sale: Corporate.................................. $ -- $ 19,882 $ 420 $ 20,302 U.S. Treasury, government and agency....... -- 8,775 -- 8,775 States and political subdivisions.......... -- 459 45 504 Foreign governments........................ -- 414 1 415 Commercial mortgage-backed................. -- 30 503 533 Residential mortgage-backed/(1)/........... -- 640 -- 640 Asset-backed/(2)/.......................... -- 37 40 77 Redeemable preferred stock................. 258 389 -- 647 ---------- --------- --------- ---------- Subtotal................................. 258 30,626 1,009 31,893 ---------- --------- --------- ---------- Other equity investments.................... 97 -- 49 146 Trading securities.......................... 654 6,151 -- 6,805 Other invested assets: Short-term investments..................... -- 369 -- 369 Swaps...................................... -- 230 -- 230 Credit Default Swaps....................... -- (22) -- (22) Futures.................................... (1) -- -- (1) Options.................................... -- 390 -- 390 Floors..................................... -- 61 -- 61 Currency Contracts......................... -- 1 -- 1 ---------- --------- --------- ---------- Subtotal................................. (1) 1,029 -- 1,028 ---------- --------- --------- ---------- Cash equivalents.............................. 2,150 -- -- 2,150 Segregated securities......................... -- 565 -- 565 GMIB reinsurance contracts.................... -- -- 10,570 10,570 Separate Accounts' assets..................... 104,058 2,964 313 107,335 ---------- --------- --------- ---------- Total Assets............................... $ 107,216 $ 41,335 $ 11,941 $ 160,492 ========== ========= ========= ========== LIABILITIES GWBL and other features' liability............ $ -- $ -- $ 184 $ 184 SCS, SIO, MSO and IUL indexed features' liability................................... -- 310 -- 310 Contingent payment arrangements............... -- -- 31 31 ---------- --------- --------- ---------- Total Liabilities.......................... $ -- $ 310 $ 215 $ 525 ========== ========= ========= ==========
/(1)/Includes publicly traded agency pass-through securities and collateralized obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. F-41 Fair Value Measurements at December 31, 2014
Level 1 Level 2 Level 3 Total ---------- --------- --------- ---------- (In Millions) ASSETS Investments: Fixed maturities, available-for-sale: Corporate.................................. $ -- $ 21,840 $ 380 $ 22,220 U.S. Treasury, government and agency....... -- 7,331 -- 7,331 States and political subdivisions.......... -- 472 47 519 Foreign governments........................ -- 446 -- 446 Commercial mortgage-backed................. -- 20 715 735 Residential mortgage-backed/(1)/........... -- 793 2 795 Asset-backed/(2)/.......................... -- 46 53 99 Redeemable preferred stock................. 254 635 -- 889 ---------- --------- --------- ---------- Subtotal................................. 254 31,583 1,197 33,034 ---------- --------- --------- ---------- Other equity investments.................... 217 -- 61 278 Trading securities.......................... 710 4,433 -- 5,143 Other invested assets: Short-term investments..................... -- 103 -- 103 Swaps...................................... -- 597 -- 597 Credit Default Swaps....................... -- (18) -- (18) Futures.................................... (2) -- -- (2) Options.................................... -- 473 -- 473 Floors..................................... -- 120 -- 120 Currency Contracts......................... -- 1 -- 1 Swaptions.................................. -- 72 -- 72 ---------- --------- --------- ---------- Subtotal................................. (2) 1,348 -- 1,346 ---------- --------- --------- ---------- Cash equivalents.............................. 2,725 -- -- 2,725 Segregated securities......................... -- 476 -- 476 GMIB reinsurance contracts.................... -- -- 10,711 10,711 Separate Accounts' assets..................... 107,539 3,072 260 110,871 ---------- --------- --------- ---------- Total Assets............................... $ 111,443 $ 40,912 $ 12,229 $ 164,584 ========== ========= ========= ========== LIABILITIES GWBL and other features' liability............ $ -- $ -- $ 128 $ 128 SCS, SIO, MSO and IUL indexed features' liability................................... -- 380 -- 380 Contingent payment arrangements............... -- -- 42 42 ---------- --------- --------- ---------- Total Liabilities.......................... $ -- $ 380 $ 170 $ 550 ========== ========= ========= ==========
/(1)/Includes publicly traded agency pass-through securities and collateralized obligations. /(2)/Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. At December 31, 2015 and 2014, respectively, the fair value of public fixed maturities is approximately $24,216 million and $24,779 million or approximately 16.2% and 16.2% of the Company's total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts and segregated securities measured at fair value on a recurring basis). The fair values of the Company's public fixed maturity securities 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 maturity securities 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. F-42 At December 31, 2015 and 2014, respectively, the fair value of private fixed maturities is approximately $7,677 million and $8,255 million or approximately 5.1% and 5.4% of the Company's total assets measured at fair value on a recurring basis. The fair values of some 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. As disclosed in Note 3, at December 31, 2015 and 2014, respectively, the net fair value of freestanding derivative positions is approximately $659 million and $1,243 million or approximately 64.1% and 92.3% of Other invested assets measured at fair value on a recurring basis. The fair values of the Company's derivative positions 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 Over-The-Counter ("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. At December 31, 2015 and 2014, respectively, investments classified as Level 1 comprise approximately 71.8% and 72.7% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, trading securities, cash equivalents and Separate Accounts 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. At December 31, 2015 and 2014, respectively, investments classified as Level 2 comprise approximately 27.3% and 26.4% of assets 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 by AB 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. At December 31, 2015 and 2014, respectively, approximately $673 million and $821 million of 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. The Company's SCS and EQUI-VEST variable annuity products, the IUL product, 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, or 5 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 F-43 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 prices obtained from independent valuation service providers. At December 31, 2015 and 2014, respectively, investments classified as Level 3 comprise approximately 0.9% and 1.0% of assets measured at fair value on a recurring basis and primarily include commercial mortgage-backed securities ("CMBS") and 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 at December 31, 2015 and 2014, respectively, were approximately $119 million and $135 million of 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, approximately $543 million and $770 million of mortgage- and asset-backed securities, including CMBS, are classified as Level 3 at December 31, 2015 and 2014, respectively. The Company utilizes prices obtained from an independent valuation service vendor to measure fair value of CMBS securities. The Company also issues certain benefits on its variable annuity products that are accounted for as derivatives and are also considered Level 3. 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 asset which is accounted for as derivative contracts. The GMIB reinsurance contract asset's fair value reflects the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios while the GIB and GWBL and other features related liability reflects the present value of expected future payments (benefits) less fees, adjusted for risk margins, attributable to the GIB and GWBL and other features over a range of market-consistent economic scenarios. The valuations of both the GMIB reinsurance contract asset and GIB and GWBL and other 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 GIB and GWBL and other features' liability positions, respectively, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve, adjusted for non-performance risk, is made to the resulting fair values of the GMIB reinsurance contract asset to reflect change in the claims-paying ratings of counterparties to the reinsurance treaties. After giving consideration to collateral arrangements, the Company reduced the fair value of its GMIB reinsurance contract asset by $123 million and $147 million at December 31, 2015 and 2014, respectively, to recognize incremental counterparty non-performance risk. The unadjusted swap curve was determined to reflect a level of general swap market counterparty risk; therefore, no adjustment was made for purpose of determining the fair value of the GIB and GWBL and other features' liability embedded derivative at December 31, 2015. Equity and fixed income volatilities were modeled to reflect the current market volatility. In second quarter 2014, the Company refined the fair value calculation of the GMIB reinsurance contract asset and GWBL, GIB and GMAB liabilities, utilizing scenarios that explicitly reflect risk free bond and equity components separately (previously aggregated and including counterparty risk premium embedded in swap rates) and stochastic interest rates for projecting and discounting cash flows (previously a single yield curve). The net impacts of these refinements were a $510 million increase to the GMIB reinsurance contract asset and a $37 million increase in the GWBL, GIB and GMAB liability which are reported in the Company's consolidated statements of Earnings (Loss) as Increase (decrease) in the fair value of the reinsurance contract asset and Policyholders' benefits, respectively. The Company's Level 3 liabilities include contingent payment arrangements associated with acquisitions in 2010, 2013 and 2014 by AB. At each reporting date, AB estimates the fair values of the contingent consideration expected to be paid based upon probability-weighted AUM and revenue projections, using unobservable market data inputs, which are included in Level 3 of the valuation hierarchy. In 2015, AFS fixed maturities with fair values of $125 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 $99 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 1.3% of total equity at December 31, 2015. In 2014, AFS fixed maturities with fair values of $82 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 $15 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.50% of total equity at December 31, 2014. F-44 The table below presents a reconciliation for all Level 3 assets and liabilities at December 31, 2015 and 2014, respectively. LEVEL 3 INSTRUMENTS FAIR VALUE MEASUREMENTS
STATE AND POLITICAL COMMERCIAL RESIDENTIAL SUB- FOREIGN MORTGAGE- MORTGAGE- ASSET- CORPORATE DIVISIONS GOVTS BACKED BACKED BACKED ------------ ------------- --------- ---------- --------------- --------- (IN MILLIONS) BALANCE, JANUARY 1, 2015....................... $ 380 $ 47 $ -- $ 715 $ 2 $ 53 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 3 -- -- 1 -- -- Investment gains (losses), net............ 2 -- -- (38) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... 5 -- -- (37) -- -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. (25) (1) -- 64 -- (4) Purchases/(3)/................................. 60 -- 1 -- -- -- Sales/(4)/..................................... (38) (1) -- (175) (2) (9) Transfers into Level 3/(1)/.................... 99 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (61) -- -- (64) -- -- ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2015..................... $ 420 $ 45 $ 1 $ 503 $ -- $ 40 ============ ============= ========= ========== =============== ========= BALANCE, JANUARY 1, 2014....................... $ 291 $ 46 $ -- $ 700 $ 4 $ 83 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 2 -- -- 2 -- -- Investment gains (losses), net............ 3 -- -- (89) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... $ 5 $ -- $ -- $ (87) $ -- $ -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. 6 2 -- 135 -- 7 Purchases/(3)/................................. 162 -- -- -- -- -- Sales/(4)/..................................... (30) (1) -- (20) (2) (37) Transfers into Level 3/(1)/.................... 15 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (69) -- -- (13) -- -- ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2014..................... $ 380 $ 47 $ -- $ 715 $ 2 $ 53 ============ ============= ========= ========== =============== ========= BALANCE, JANUARY 1, 2013....................... $ 355 $ 50 $ 19 $ 900 $ 9 $ 113 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss).............. 2 -- -- -- -- -- Investment gains (losses), net............ 5 -- -- (68) -- -- ------------ ------------- --------- ---------- --------------- --------- Subtotal..................................... 7 -- -- (68) -- -- ------------ ------------- --------- ---------- --------------- --------- Other comprehensive income (loss).............. (1) (3) (2) 13 (1) 3 Purchases/(3)/................................. 70 -- -- 31 -- -- Sales/(4)/..................................... (150) (1) (17) (160) (4) (22) Transfers into Level 3/(1)/.................... 20 -- -- -- -- -- Transfers out of Level 3/(1)/.................. (10) -- -- (16) -- (11) ------------ ------------- --------- ---------- --------------- --------- BALANCE, DECEMBER 31, 2013..................... $ 291 $ 46 $ -- $ 700 $ 4 $ 83 ============ ============= ========= ========== =============== =========
F-45
REDEEM- GWBL ABLE GMIB SEPARATE AND OTHER CONTINGENT PREFERRED OTHER EQUITY REINSURANCE ACCOUNTS FEATURES PAYMENT STOCK INVESTMENTS ASSET ASSETS LIABILITY ARRANGEMENT ---------- --------------- ----------- -------- ---------- ----------- (IN MILLIONS) BALANCE, JANUARY 1, 2015...................... $ -- $ 61 $ 10,711 $ 260 $ 128 42 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss)............... -- -- -- -- -- -- Investment gains (losses), net............. -- 5 -- 36 -- -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- (327) -- -- -- Policyholders' benefits.................... -- -- -- -- (130) -- ---------- --------------- ----------- -------- ---------- ---------- Subtotal................................. -- 5 (327) 36 (130) -- ---------- --------------- ----------- -------- ---------- ---------- Other comprehensive income (loss)........... -- 2 -- -- -- -- Purchases/(2)/................................ -- 1 228 26 186 -- Sales/(3)/.................................... -- (20) (42) (2) -- (11) Settlements/(4)/.............................. -- -- -- (5) -- -- Transfers into Level 3/(1)/................... -- -- -- -- -- -- Transfers out of Level 3/(1)/................. -- -- -- (2) -- -- ---------- --------------- ----------- -------- ---------- ---------- BALANCE, DECEMBER 31, 2015.................... $ -- $ 49 $ 10,570 $ 313 $ 184 31 ========== =============== =========== ======== ========== ========== BALANCE, JANUARY 1, 2014...................... $ 15 $ 52 $ 6,747 $ 237 $ -- 38 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net investment income (loss)............... -- 3 -- -- -- -- Investment gains (losses), net............. -- 1 -- 15 -- -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- 3,774 -- -- -- Policyholders' benefits.................... -- -- -- -- (8) -- ---------- --------------- ----------- -------- ---------- ---------- Subtotal................................. $ -- $ 4 $ 3,774 $ 15 $ (8) -- ---------- --------------- ----------- -------- ---------- ---------- Other comprehensive income(loss)............ -- -- -- -- -- -- Purchases/(2)/................................ -- 8 225 16 136 9 Sales/(3)/.................................... (15) (1) (35) (3) -- (5) Settlements/(4)/.............................. -- -- -- (5) -- -- Transfers into Level 3/(1)/................... -- -- -- -- -- -- Transfers out of Level 3/(1)/................. -- (2) -- -- -- -- ---------- --------------- ----------- -------- ---------- ---------- BALANCE, DECEMBER 31, 2014.................... $ -- $ 61 $ 10,711 $ 260 $ 128 42 ========== =============== =========== ======== ========== ==========
F-46
Redeem- GWBL able Other GMIB Separate and Other Preferred Other Equity Invested Reinsurance Accounts Features Stock Investments Assets Asset Assets Liability --------- ------------ --------- ------------- ---------- ---------- (In Millions) BALANCE, JANUARY 1, 2013...................... $ 15 $ 77 $ (2) $ 11,044 $ 224 $ 265 Total gains (losses), realized and unrealized, included in: Earnings (loss) as: Net Investment Income (loss)............... 10 Investment gains (losses), net............. -- (7) -- -- 10 -- Increase (decrease) in the fair value of reinsurance contracts.................... -- -- -- (4,496) -- -- Policyholders' benefits.................... -- -- -- -- -- (351) --------- ------------ --------- ------------- ---------- ---------- Subtotal................................. -- 3 -- (4,496) 10 (351) --------- ------------ --------- ------------- ---------- ---------- Other comprehensive income (loss)........... -- -- 2 -- (1) -- Purchases/(2)/................................ -- 4 -- 237 6 86 Sales/(3)/.................................... -- (3) -- (38) (3) -- Settlements/(4)/.............................. -- -- -- -- (2) -- Transfers into Level 3/(1)/................... -- -- -- -- 3 -- Transfers out of Level 3/(1)/................. -- (29) -- -- -- -- --------- ------------ --------- ------------- ---------- ---------- BALANCE, DECEMBER 31, 2013.................... $ 15 $ 52 $ -- $ 6,747 $ 237 $ -- ========= ============ ========= ============= ========== ==========
/(1)/Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. /(2)/For the GMIB reinsurance contract asset and GWBL and other features reserves, represents premiums. /(3)/For the GMIB reinsurance contract asset, represents recoveries from reinsurers and for GWBL and other features reserves represents benefits paid. /(4)/For contingent payment arrangements, it represents payments under the arrangement. F-47 The table below details changes in unrealized gains (losses) for 2015 and 2014 by category for Level 3 assets and liabilities still held at December 31, 2015 and 2014, respectively:
EARNINGS (LOSS) ----------------------------------------------- INCREASE NET (DECREASE) IN THE INVESTMENT INVESTMENT FAIR VALUE OF POLICY- INCOME GAINS REINSURANCE HOLDERS' (LOSS) (LOSSES), NET CONTRACTS OCI BENEFITS ---------- --------------- -------------------- ------------ ---------- (IN MILLIONS) LEVEL 3 INSTRUMENTS FULL YEAR 2015 STILL HELD AT DECEMBER 31, 2015 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate................................. $ -- $ -- $ -- $ (25) $ -- State and political subdivisions.......... -- -- -- (2) -- Commercial mortgage-backed................ -- -- -- 61 -- Asset-backed.............................. -- -- -- (4) -- Other fixed maturities, available-for- sale.................................... -- -- -- -- -- ---------- --------------- -------------------- ------------ ---------- Subtotal................................ $ -- $ -- $ -- $ 30 $ -- ---------- --------------- -------------------- ------------ ---------- GMIB reinsurance contracts.................. -- -- (141) -- -- Separate Accounts' assets................... -- 36 -- -- -- GWBL and other features' liability.......... -- -- -- -- 184 ---------- --------------- -------------------- ------------ ---------- Total................................... $ -- $ 36 $ (141) $ 30 $ 184 ========== =============== ==================== ============ ========== Level 3 Instruments Full Year 2014 Still Held at December 31, 2014 Change in unrealized gains (losses): Fixed maturities, available-for-sale: Corporate................................. $ -- $ -- $ -- $ 6 $ -- State and political subdivisions.......... -- -- -- 2 -- Commercial mortgage-backed................ -- -- -- 112 -- Asset-backed.............................. -- -- -- 7 -- Other fixed maturities, available-for- sale.................................... -- -- -- -- -- ---------- --------------- -------------------- ------------ ---------- Subtotal................................ $ -- $ -- $ -- $ 127 $ -- ---------- --------------- -------------------- ------------ ---------- GMIB reinsurance contracts.................. -- -- 3,964 -- -- Separate Accounts' assets................... -- 15 -- -- -- GWBL and other features' liability.......... -- -- -- -- 128 ---------- --------------- -------------------- ------------ ---------- Total................................... $ -- $ 15 $ 3,964 $ 127 $ 128 ========== =============== ==================== ============ ==========
F-48 The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2015 and 2014, respectively. QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS DECEMBER 31, 2015
FAIR VALUATION VALUE TECHNIQUE SIGNIFICANT UNOBSERVABLE INPUT RANGE ------- ---------------------- ------------------------------ ----------------- (IN MILLIONS) ASSETS: Investments: Fixed maturities, available-for-sale: Corporate................... $ 61 Matrix pricing model Spread over the industry-specific benchmark yield curve 50 BPS - 565 BPS 154 Market comparable EBITDA multiples 7.8X - 19.1X companies Discount rate 7.0% - 12.6% Cash flow Multiples 14.0X - 16.5X --------------------------------------------------------------------------------------------------------------- Asset-backed................ 3 Matrix pricing model Spread over U.S. Treasury curve 30 BPS - 687 BPS --------------------------------------------------------------------------------------------------------------- Other equity investments....... 10 Market comparable Revenue multiple 2.5X - 4.8X companies Marketability Discount 30.0% --------------------------------------------------------------------------------------------------------------- Separate Accounts' assets...... 271 Third party appraisal Capitalization rate 4.9% Exit capitalization rate 5.9% Discount rate 6.7% 7 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product 280 BPS - 411 BPS rate 0.0% - 1.09% Discount factor 2.3% - 5.9% --------------------------------------------------------------------------------------------------------------- GMIB reinsurance contracts..... 10,570 Discounted cash flow Lapse Rates 0.6% - 5.7% Withdrawal rates 0.2% - 8.0% GMIB Utilization Rates 0.0% - 15% Non-performance risk 5 BPS - 18 BPS Volatility rates - Equity 9% - 35% --------------------------------------------------------------------------------------------------------------- LIABILITIES: GMWB/GWBL/(1)/................. 120 Discounted cash flow Lapse Rates 1.0% - 5.7% Withdrawal rates 0.0% - 7.0% Volatility rates - Equity 9% - 35% ---------------------------------------------------------------------------------------------------------------
/(1)/Excludes GMAB and GIB liabilities. F-49 Quantitative Information about Level 3 Fair Value Measurements December 31, 2014
Fair Valuation Value Technique Significant Unobservable Input Range ------- ---------------------- --------------------------------- ----------------- (In Millions) ASSETS: Investments: Fixed maturities, available-for-sale: Corporate.................. $ 75 Matrix pricing model Spread over the industry-specific benchmark yield curve 0 BPS - 590 BPS 132 Market comparable companies Discount rate 11.2% - 15.2% ----------------------------------------------------------------------------------------------------------------- Asset-backed............... 5 Matrix pricing model Spread over U.S. Treasury curve 30 BPS - 687 BPS ----------------------------------------------------------------------------------------------------------------- Other equity investments...... 20 Market comparable Revenue multiple 2.0X - 3.5X companies Discount rate 18.0% Discount years 2 ----------------------------------------------------------------------------------------------------------------- Separate Accounts' assets..... 234 Third party appraisal Capitalization rate 5.2% Exit capitalization rate 6.2% Discount rate 7.1% 7 Discounted cash flow Spread over U.S. Treasury curve Gross domestic product 238 BPS - 395 BPS rate 0.0% - 2.4% Discount factor 1.3% - 5.4% ----------------------------------------------------------------------------------------------------------------- GMIB reinsurance contracts.... 10,711 Discounted cash flow Lapse Rates 1.0% - 8.0% Withdrawal Rates 0.2% - 8.0% GMIB Utilization Rates 0.0% - 15.0% Non-performance risk 5 BPS - 16 BPS Volatility rates - Equity 9.0% - 34.0% ----------------------------------------------------------------------------------------------------------------- LIABILITIES: GMWB/GWBL /(1)/............... 107 Discounted cash flow Lapse Rates 1.0% - 8.0% Withdrawal Rates 0.0% - 7.0% Volatility rates - Equity 9.0% - 34.0% -----------------------------------------------------------------------------------------------------------------
/(1)/Excludes GMAB and GIB liabilities. Excluded from the tables above at December 31, 2015 and 2014, respectively, are approximately $865 million and $1,045 million Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by the Company and are not readily available. The fair value measurements of these Level 3 investments comprise approximately 63.1% and 68.8% of total assets classified as Level 3 and represent only 0.6% and 0.7% of total assets measured at fair value on a recurring basis at December 31, 2015 and 2014 respectively. These investments primarily consist of certain privately placed debt securities with limited trading activity, including commercial mortgage-, 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. Included in the tables above at December 31, 2015 and 2014, respectively, are approximately $215 million and $207 million fair value of privately placed, available-for-sale corporate debt securities classified as Level 3. The fair value of private placement securities is determined by application of a matrix pricing model or a market comparable company value technique, representing approximately 51.2% and 54.4% of the total fair value of Level 3 securities in the corporate fixed maturities asset class. 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. F-50 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, 2015 and 2014, 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, 2015 and 2014, are approximately 7.5% and 9.4%, respectively, of the total fair value of these Level 3 securities that is 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. Significant increases (decreases) in spreads would result in significantly lower (higher) fair value measurements. Other equity investments classified as Level 3 primarily consist of private venture capital fund investments of AB for which fair values are adjusted to reflect expected exit values as evidenced by financing and sale transactions with third parties or when consideration of other factors, such as current company performance and market conditions, is determined by management to require valuation adjustment. Significant increase (decrease) in isolation in the underlying enterprise value to revenue multiple and enterprise value to R&D investment multiple, if applicable, would result in significantly higher (lower) fair value measurement. Significant increase (decrease) in the discount rate would result in a significantly lower (higher) fair value measurement. Significant increase (decrease) in isolation in the discount factor ascribed for lack of marketability and various risk factors would result in significantly lower (higher) fair value measurement. Changes in the discount factor generally are not correlated to changes in the value multiples. Also classified as Level 3 at December 31, 2015 and 2014, respectively, are approximately $32 million and $31 million private venture capital fund-of-fund investments of AB for which fair value is estimated using the capital account balances provided by the partnerships. The interests in these partnerships cannot be redeemed. As of December 31, 2015 and 2014, AB's aggregate unfunded commitments to these investments were approximately $3 million and $3 million, respectively. Separate Accounts' assets classified as Level 3 in the table at December 31, 2015 and 2014, primarily consist of a private real estate fund with a fair value of approximately $271 million and $234 million, a private equity investment with a fair value of approximately $2 million and $2 million and mortgage loans with fair value of approximately $5 million and $5 million, respectively. 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. A discounted cash flow approach is applied to determine the private equity investment for which the significant unobservable assumptions are the gross domestic product rate formula and a discount factor that takes into account various risks, including the illiquid nature of the investment. A significant increase (decrease) in the gross domestic product rate would have a directionally inverse effect on the fair value of the security. 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. Treasuries 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. The remaining Separate Accounts' investments classified as Level 3 excluded from the table consist of mortgage- and asset-backed securities with fair values of approximately $28 million and $7 million at December 31, 2015 and $11 million and $8 million at December 31, 2014, respectively. 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 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 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. 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. F-51 The three AB acquisition-related contingent consideration liabilities (with a combined fair value of $31 million and $42 million as of December 31, 2015 and 2014, respectively) are currently valued using projected AUM growth rates with a weighted average of 46.0%, revenue growth rates with a weighted average of 43.0%, and discount rates of 3.0% (using a cost of debt assumption). During the fourth quarters of 2015 and 2014, AB recorded changes in estimates of the contingent consideration payable relating to recent acquisitions of $7 million and $4 million, respectively. The carrying values and fair values at December 31, 2015 and 2014 for financial instruments not otherwise disclosed in Notes 3 and 12 are presented in the table below. 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.
FAIR VALUE CARRYING ---------------------------------- VALUE LEVEL 1 LEVEL 2 LEVEL 3 TOTAL -------- ------- -------- -------- -------- (IN MILLIONS) December 31, 2015: MORTGAGE LOANS ON REAL ESTATE................ $ 7,171 $ -- $ -- $ 7,257 $ 7,257 LOANS TO AFFILIATES.......................... 1,087 -- 795 390 1,185 POLICYHOLDERS LIABILITIES: INVESTMENT CONTRACTS.................................. 7,825 -- -- 7,930 7,930 POLICY LOANS................................. 3,393 -- -- 4,343 4,343 SHORT-TERM DEBT.............................. 584 -- 584 -- 584 SEPARATE ACCOUNT LIABILITIES................. 5,124 -- -- 5,124 5,124 December 31, 2014: Mortgage loans on real estate................ $ 6,463 $ -- $ -- $ 6,617 6,617 Loans to affiliates.......................... 1,087 -- 1,203 -- 1,203 Policyholders liabilities: Investment contracts.................................. 2,799 -- -- 2,941 2,941 Policy loans................................. 3,408 -- -- 4,406 4,406 Short-term debt.............................. 688 -- 700 -- 700 Separate Account Liabilities................. 5,019 -- -- 5,019 5,019
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 from taking the appropriate U.S. Treasury rate with a like term to the remaining term of the loan and adding a spread reflective of the risk premium associated with the specific loan. 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. The Company's short-term debt primarily includes commercial paper issued by AB with short-term maturities and book value approximates fair value. The fair values of the Company's borrowing and lending arrangements with AXA affiliated entities are determined from quotations provided by brokers knowledgeable about these securities and internally assessed for reasonableness, 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. 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 Policyholder's 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 FHLBNY funding agreements and escrow shield plus product reserves are held at book value. 8) GMDB, GMIB, GIB, GWBL AND OTHER FEATURES AND NO LAPSE GUARANTEE FEATURES A) 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); F-52 . 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. The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the General Account in future policy benefits and other policyholders' liabilities:
GMDB GMIB TOTAL -------- -------- -------- (IN MILLIONS) Balance at January 1, 2013................... $ 1,772 $ 4,561 $ 6,333 Paid guarantee benefits.................... (237) (325) (562) Other changes in reserve................... 91 (33) 58 -------- -------- -------- Balance at December 31, 2013................. 1,626 4,203 5,829 Paid guarantee benefits.................... (231) (220) (451) Other changes in reserve................... 334 1,661 1,995 -------- -------- -------- Balance at December 31, 2014................. 1,729 5,644 7,373 Paid guarantee benefits.................... (313) (89) (402) Other changes in reserve................... 1,570 (258) 1,312 -------- -------- -------- Balance at December 31, 2015................. $ 2,986 $ 5,297 $ 8,283 ======== ======== ========
Related GMDB reinsurance ceded amounts were:
GMDB ------------- (IN MILLIONS) Balance at January 1, 2013...................................... $ 844 Paid guarantee benefits....................................... (109) Other changes in reserve...................................... 56 ------------- Balance at December 31, 2013.................................... 791 Paid guarantee benefits....................................... (114) Other changes in reserve...................................... 155 ------------- Balance at December 31, 2014.................................... 832 Paid guarantee benefits....................................... (148) Other changes in reserve...................................... 746 ------------- Balance at December 31, 2015.................................... $ 1,430 =============
F-53 The GMIB reinsurance contracts are considered derivatives and are reported at fair value. The December 31, 2015 values for variable annuity contracts in force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds 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 guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive:
RETURN OF PREMIUM RATCHET ROLL-UP COMBO TOTAL --------- -------- --------- --------- ------- (DOLLARS IN MILLIONS) GMDB: ----- Account values invested in: General Account............................ $ 13,037 $ 132 $ 78 $ 244 $13,491 Separate Accounts.......................... $ 38,438 $ 8,570 $ 3,472 $ 34,160 $84,640 Net amount at risk, gross................... $ 397 $ 422 $ 2,389 $ 15,872 $19,080 Net amount at risk, net of amounts reinsured.................................. $ 397 $ 302 $ 1,616 $ 6,743 $ 9,058 Average attained age of contractholders..... 51.1 65.4 71.7 66.4 55.0 Percentage of contractholders over age 70... 9.0% 35.4% 58.1% 38.2% 16.6% Range of contractually specified interest rates...................................... N/A N/A 3%-6% 3%-6.5% 3%-6.5% GMIB: ----- Account values invested in: General Account............................ N/A N/A $ 41 $ 351 $ 392 Separate Accounts.......................... N/A N/A $ 15,467 $ 41,092 $56,559 Net amount at risk, gross................... N/A N/A $ 1,179 $ 6,232 $ 7,411 Net amount at risk, net of amounts reinsured.................................. N/A N/A $ 351 $ 1,561 $ 1,912 Weighted average years remaining until annuitization.............................. N/A N/A 1.4 1.9 1.9 Range of contractually specified interest rates...................................... N/A N/A 3%-6% 3%-6.5% 3%-6.5%
The liability for SCS, SIO, MSO and IUL indexed features and the GIB and GWBL and other features, not included above, was $494 million and $508 million at December 31, 2015 and 2014, respectively, which are accounted for as embedded derivatives. The liability for GIB, GWBL and other features reflects the present value of expected future payments (benefits) less the fees attributable to these features over a range of market consistent economic scenarios. The liability for SCS, SIO, MSO and IUL reflects the present value of expected future payments assuming the segments are held to maturity. In-force management The Company continues to proactively manage its in-force business. For example: . GMIB/GWBL LUMP SUM OPTION. In 2015, the Company added a lump sum option to certain contracts with GMIB and GWBL benefits. Prior to the addition of this option, if an eligible contractholder's adjusted account value fell to zero, the contractholder would automatically receive a stream of payments over his or her lifetime. With this option, eligible contractholders now have the ability to receive a percentage of the present value of those lifetime payments in a one-time lump sum payment. . GMDB/GMIB BUYBACK. Beginning in 2012, the Company initiated several programs to purchase from certain contractholders the GMDB and GMIB riders contained in their Accumulator(R) contracts. Most recently in 2015, the Company initiated a program to give contractholders an option to elect a full buyout of their rider or a new partial (50%) buyout of their rider. The Company believes that the lump sum option and buyback programs are mutually beneficial to both the Company and contractholders who no longer need or want the GMDB, GMIB or GWBL rider. As a result of the 2015 buyback program, the Company is assuming a change in the short-term behavior of remaining contractholders, as those who do not accept are assumed to be less likely to surrender their contract over the short term. The Company is also incorporating the expectation that some contractholders will utilize the new lump sum option product feature. F-54 Due to the difference in accounting recognition between the GMDB/GMIB and GWBL reserves and the fair value of the GMIB reinsurance contract asset, the net impact of the addition of the lump sum option to certain contracts and the 2015 buyback offer is an after-tax loss of $247 million, which was recognized in 2015. The net impact of a 2013 buyback that completed in 2014 was an after-tax loss of $29 million and $20 million to Net earnings in 2014 and 2013, respectively. For additional information, see "Accounting for VA Guarantee Features" in Note 2. B) Separate Account Investments by Investment Category Underlying 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 benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: INVESTMENT IN VARIABLE INSURANCE TRUST MUTUAL FUNDS
DECEMBER 31, ------------------ 2015 2014 -------- --------- (IN MILLIONS) GMDB: ----- Equity....................................... $ 66,230 $ 67,108 Fixed income................................. 2,686 3,031 Balanced..................................... 15,350 17,505 Other........................................ 374 404 -------- --------- Total........................................ $ 84,640 $ 88,048 ======== ========= GMIB: ----- Equity....................................... $ 43,874 $ 43,850 Fixed income................................. 1,819 1,988 Balanced..................................... 10,696 12,060 Other........................................ 170 186 -------- --------- Total........................................ $ 56,559 $ 58,084 ======== =========
C) Hedging Programs for GMDB, GMIB, GIB and GWBL and Other Features Beginning in 2003, AXA Equitable 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(R) 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 reinsured. At December 31, 2015, the total account value and net amount at risk of the hedged variable annuity contracts were $50,333 million and $7,841 million, respectively, with the GMDB feature and $32,740 million and $1,560 million, respectively, with the GMIB and GIB feature. 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 earnings (loss) volatility. D) Variable and Interest-Sensitive Life Insurance Policies - No Lapse Guarantee The no lapse guarantee 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 no lapse guarantee remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. F-55 The following table summarizes the no lapse guarantee liabilities, reflected in the General Account in Future policy benefits and other policyholders' liabilities, the related reinsurance reserve ceded, reflected in Amounts due from reinsurers and deferred cost of reinsurance, reflected in Other assets in the Consolidated balance sheets.
DIRECT REINSURANCE LIABILITY CEDED NET --------- ----------- -------- (IN MILLIONS) Balance at January 1, 2013................... $ 556 $ (310) $ 246 Other changes in reserves.................. 273 (131) 142 --------- ----------- -------- Balance at December 31, 2013................. 829 (441) 388 Other changes in reserves.................. 135 (114) 21 --------- ----------- -------- Balance at December 31, 2014................. 964 (555) 409 Other changes in reserves.................. 120 16 136 --------- ----------- -------- Balance at December 31, 2015................. $ 1,084 $ (539) $ 545 ========= =========== ========
9) 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 Company reinsures most of its new variable life, UL and term life policies on an excess of retention basis. The Company generally retains up to $25 million on each single-life policy and$30 million on each second-to-die policy, with the excess 100% reinsured. The Company also reinsures the entire risk on certain substandard underwriting risks and in certain other cases. At December 31, 2015, the Company had reinsured with non-affiliates and affiliates in the aggregate approximately 4.1% and 48.4%, 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 19.6% and 54.6%, respectively, of its current liability exposure resulting from the GMIB feature. See Note 8. Based on management's estimates of future contract cash flows and experience, the fair values of the GMIB reinsurance contracts, considered derivatives at December 31, 2015 and 2014 were $10,570 million and $10,711 million, respectively. The increases (decreases) in fair value were $(141) million, $3,964 million and $(4,297) million for 2015, 2014 and 2013, respectively. At December 31, 2015 and 2014, respectively, third-party reinsurance recoverables related to insurance contracts amounted to $2,458 million and $2,367 million, of which $2,005 million and $2,069 million related to three specific reinsurers, which were Zurich Insurance Company Ltd. (AA -- rating), Paul Revere Life Insurance Company (A rating) and Connecticut General Life Insurance Company (AA- rating). At December 31, 2015 and 2014, affiliated reinsurance recoverables related to insurance contracts amounted to $2,009 million and $1,684 million, respectively. A contingent liability exists with respect to reinsurance should the reinsurers be unable to meet their obligations. Reinsurance payables related to insurance contracts were $131 million and $74 million, at December 31, 2015 and 2014, respectively. The Company cedes substantially all of its group life and health business to a third party insurer. Insurance liabilities ceded totaled $92 million and $110 million at December 31, 2015 and 2014, 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. The Company has also assumed accident, health, annuity, aviation and space risks by participating in or reinsuring various reinsurance pools and arrangements. In addition to the sale of insurance products, AXA Equitable currently acts as a professional retrocessionaire by assuming life reinsurance from professional reinsurers. Reinsurance assumed reserves at December 31, 2015 and 2014 were $744 million and $757 million, respectively. For affiliated reinsurance agreements see Note 11 "Related Party Transactions." F-56 The following table summarizes the effect of reinsurance:
2015 2014 2013 ------ ------ ------ (IN MILLIONS) Direct premiums.............................. $ 820 $ 844 $ 848 Reinsurance assumed.......................... 207 211 213 Reinsurance ceded............................ (539) (541) (565) ------ ------ ------ Premiums..................................... $ 488 $ 514 $ 496 ====== ====== ====== Universal Life and Investment-type Product Policy Fee Income Ceded.................... $ 279 $ 270 $ 247 ====== ====== ====== Policyholders' Benefits Ceded................ $ 527 $ 726 $ 703 ====== ====== ======
Individual Disability Income and Major Medical Claim reserves and associated liabilities net of reinsurance ceded for individual DI and major medical policies were $80 million and $78 million at December 31, 2015 and 2014, respectively. At December 31, 2015 and 2014, respectively, $1,652 million and $1,714 million of DI reserves and associated liabilities were ceded through indemnity reinsurance agreements with a singular reinsurance group, rated AA-. Net incurred benefits (benefits paid plus changes in claim reserves) and benefits paid for individual DI and major medical policies are summarized below:
2015 2014 2013 ----- ----- ----- (IN MILLIONS) Incurred benefits related to current year.... $ 11 $ 14 $ 15 Incurred benefits related to prior years..... 22 16 10 ----- ----- ----- Total Incurred Benefits...................... $ 33 $ 30 $ 25 ===== ===== ===== Benefits paid related to current year........ $ 18 $ 20 $ 19 Benefits paid related to prior years......... 13 11 13 ----- ----- ----- Total Benefits Paid.......................... $ 31 $ 31 $ 32 ===== ===== =====
10)SHORT-TERM DEBT Short-term debt consists of the following:
DECEMBER 31, ------------- 2015 2014 ------ ------ (IN MILLIONS) Short-term debt: AB: Commercial paper (with interest rates of 0.5% and 0.3%)............................ $ 584 $ 489 AXA Equitable: Surplus Notes, 7.7%, due 2015.............. -- 200 ------ ------ Total short-term debt........................ $ 584 $ 689 ====== ======
Short-term Debt AB has a $1,000 million committed, unsecured senior revolving credit facility ("AB Credit Facility") with a group of commercial banks and other lenders. The AB Credit Facility provides for possible increases in the principal amount by up to an aggregate incremental amount of $250 million, any such increase being subject to the consent of the affected lenders. The AB Credit Facility is available for AB's and SCB LLC's business purposes, including the support of AB's $1,000 million commercial paper program. Both AB and SCB LLC can draw directly under the AB Credit Facility and management may draw on the AB Credit Facility from time to time. AB has agreed to guarantee the obligations of SCB LLC under the AB Credit Facility. The AB Credit Facility contains affirmative, negative and financial covenants, which are customary for facilities of this type, including, among other things, restrictions on dispositions of assets, restrictions on liens, a minimum interest coverage ratio and a maximum leverage ratio. As of December 31, 2015, AB and SCB LLC were in compliance with these covenants. The AB Credit Facility also includes customary events of F-57 default (with customary grace periods, as applicable), including provisions under which, upon the occurrence of an event of default, all outstanding loans may be accelerated and/or lender's commitments may be terminated. Also, under such provisions, upon the occurrence of certain insolvency- or bankruptcy-related events of default, all amounts payable under the AB Credit Facility automatically would become immediately due and payable, and the lender's commitments automatically would terminate. On October 22, 2014, as part of an amendment and restatement, the maturity date of the AB Credit Facility was extended from January 17, 2017 to October 22, 2019. There were no other significant changes included in the amendment. As of December 31, 2015 and 2014, AB and SCB LLC had no amounts outstanding under the AB Credit Facility. During 2015 and 2014, AB and SCB LLC did not draw upon the AB Credit Facility. In addition, SCB LLC has three uncommitted lines of credit with three financial institutions. Two of these lines of credit permit SCB LLC to borrow up to an aggregate of approximately $200 million, with AB named as an additional borrower, while one has no stated limit. As of December 31, 2015 and 2014, SCB LLC had no bank loans outstanding. 11)RELATED PARTY TRANSACTIONS Loans to Affiliates In September 2007, AXA issued a $650 million 5.4% Senior Unsecured Note to AXA Equitable. The note pays interest semi-annually and was scheduled to mature on September 30, 2012. In March 2011, the maturity date of the note was extended to December 30, 2020 and the interest rate was increased to 5.7%. In June 2009, AXA Equitable sold real estate property valued at $1,100 million to a non-insurance subsidiary of AXA Financial in exchange for $700 million in cash and $400 million in 8.0% ten year term mortgage notes on the property reported in Loans to affiliates in the consolidated balance sheets. In November 2014, this loan was refinanced and a new $382 million, seven year term loan with an interest rate of 4.0% was issued. In third quarter 2013, AXA Equitable purchased, at fair value, AXA Arizona's $50 million note receivable from AXA for $56 million. This note pays interest semi-annually at an interest rate of 5.4% and matures on December 15, 2020. Loans from Affiliates In 2005, AXA Equitable issued a surplus note to AXA Financial in the amount of $325 million with an interest rate of 6.0% and was scheduled to mature on December 1, 2035. In December 2014, AXA Equitable repaid this note at par value plus interest accrued of $1 million to AXA Financial. In December 2008, AXA Equitable issued a $500 million callable 7.1% surplus note to AXA Financial. The note pays interest semi-annually and was scheduled to mature on December 1, 2018. In June 2014, AXA Equitable repaid this note at par value plus interest accrued of $3 million to AXA Financial. Other Transactions Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable Qualified Pension Plan ("AXA Equitable QP") was transferred from AXA Equitable to AXA Financial under terms of an Assumption Agreement. For additional information regarding this transaction see Note 12. In third quarter 2013, AXA Equitable purchased, at fair value, MONY Life Insurance Company's ("MONY Life"), equity interest in limited partnerships for $53 million and MONY Life's CMBS portfolio for $31 million. MONY Life was a subsidiary of AXA Financial through October 1, 2013. The Company reimburses AXA Financial for expenses related to certain employee compensation and benefits. Such reimbursement is based on the cost to AXA Financial of the benefits provided which totaled $20 million, $29 million and $40 million, respectively, for 2015, 2014 and 2013. In 2015, 2014 and 2013, respectively, the Company paid AXA Distribution Holding Corporation ("AXA Distribution") and its subsidiaries $603 million, $616 million and $621 million of commissions and fees for sales of insurance products. The Company charged AXA Distribution's subsidiaries $321 million, $325 million and $345 million, respectively, for their applicable share of operating expenses in 2015, 2014 and 2013, pursuant to Service agreement. F-58 AXA Distributors received $13 million, $2 million and $2 million in commissions and fees for the sale of MONY Life Insurance Company of America ("MONY America") insurance products in 2015, 2014 and 2013, respectively. AXA Distributors is an indirect wholly owned subsidiary of AXA Equitable. The Company has implemented capital management actions to mitigate statutory reserve strain for certain level term and UL policies with secondary guarantees and GMDB and GMIB riders on the Accumulator(R) products through reinsurance transactions with AXA RE Arizona Company ("AXA Arizona"), a wholly-owned subsidiary of AXA Financial. The Company currently reinsures to AXA 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 Arizona also 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. The reinsurance arrangements with AXA Arizona provide important capital management benefits to AXA Equitable. At December 31, 2015 and 2014, the Company's GMIB reinsurance asset with AXA Arizona had carrying values of $8,741 million and $8,560 million, respectively, and is reported in Guaranteed minimum income benefit reinsurance asset, at fair value in the consolidated balance sheets. Ceded premiums in 2015, 2014 and 2013 related to the UL and no lapse guarantee riders totaled approximately $453 million, $453 million and $474 million, respectively. Ceded claims paid in 2015, 2014 and 2013 were $54 million, $83 million and $70 million, respectively. AXA Equitable receives statutory reserve credits for reinsurance treaties with AXA Arizona to the extent that AXA Arizona holds assets in an irrevocable trust (the "Trust") ($9,099 million at December 31, 2015) and/or letters of credit ($3,205 million at December 31, 2015). These letters of credit are guaranteed by AXA. Under the reinsurance transactions, AXA Arizona is permitted to transfer assets from the Trust under certain circumstances. The level of statutory reserves held by AXA Arizona 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 AXA Arizona's liquidity. Various AXA affiliates, including AXA Equitable, cede a portion of their 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 Life Insurance Company Ltd (Japan), an AXA subsidiary, cedes a portion of their annuity business to AXA Equitable. Various AXA Financial affiliates cede a portion of their life business through excess of retention treaties to AXA Equitable on a yearly renewal term basis. Premiums earned from the above mentioned affiliated reinsurance transactions in 2015, 2014 and 2013 totaled approximately $21 million, $22 million and $21 million, respectively. Claims and expenses paid in 2015, 2014 and 2013 were $5 million, $10 million and $10 million, respectively. In April 2015, AXA entered into a mortality catastrophe bond based on general population mortality in each of France, Japan and the U.S. The purpose of the bond is to protect AXA against a severe worldwide pandemic. AXA Equitable entered into a stop loss reinsurance agreement with AXA Global Life to protect AXA Equitable with respect to a deterioration in its claim experience following the occurrence of an extreme mortality event. The reinsurance agreement was approved by the NYDFS with a retroactive effective date of January 1, 2015 and is due to expire on December 31, 2024. Premiums and expenses associated with the reinsurance agreement were $4 million in 2015. AXA Equitable provides personnel services, employee benefits, facilities, supplies and equipment under service agreements with certain AXA Financial subsidiaries and affiliates to conduct their business. The associated costs related to the service agreement are allocated based on methods that management believes are reasonable, including a review of the nature of such costs and activities performed to support each company. As a result of such allocations, AXA Equitable was reimbursed $94 million, $75 million and $148 million for 2015, 2014 and 2013, respectively. Both AXA Equitable and AB, along with other AXA affiliates, participate in certain intercompany cost sharing and service agreements including technology and professional development arrangements. AXA Equitable and AB incurred expenses under such agreements of approximately $164 million, $173 million and $165 million in 2015, 2014 and 2013, respectively. Expense reimbursements by AXA and AXA affiliates to AXA Equitable under such agreements totaled approximately $14 million, $15 million and $24 million in 2015, 2014 and 2013, respectively. The net receivable (payable) related to these contracts was approximately $1 million and $3 million at December 31, 2015 and 2014, respectively. F-59 During 2015, 2014 and 2013 AXA Equitable FMG earned $707 million, $711 million and $690 million, respectively of Investment management and administrative fees from EQAT, VIP Trust, 1290 Funds (since inception in 2014) and Other AXA Trusts. Accounts receivable from these transactions were $47 million and $48 million at December 31, 2015 and 2014, respectively. Commissions, fees and other income includes certain revenues for services provided to mutual funds managed by AB. These revenues are described below:
2015 2014 2013 -------- -------- -------- (IN MILLIONS) Investment advisory and services fees......... $ 1,056 $ 1,062 $ 1,010 Distribution revenues......................... 415 433 455 Other revenues -- shareholder servicing fees.. 85 91 91 Other revenues -- other....................... 5 6 6
12)EMPLOYEE BENEFIT PLANS AXA Equitable Retirement Plans 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 $18 million, $18 million and $0 million in 2015, 2014 and 2013, respectively. AXA Equitable also sponsors the AXA Equitable Retirement Plan (the "AXA Equitable QP"), a qualified defined benefit pension plan covering its eligible employees (including certain qualified part-time 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 earnings over a specified period in the plan. Effective December 31, 2015, primary liability for the obligations of AXA Equitable under the AXA Equitable QP was transferred from AXA Equitable to AXA Financial under the terms of an Assumption Agreement (the "Assumption Transaction"). Immediately preceding the Assumption Transaction, the AXA Equitable QP had plan assets (held in a trust for the exclusive benefit of plan participants) with market value of approximately $2,236 million and liabilities of approximately $2,447 million. The assumption by AXA Financial and resulting extinguishment of AXA Equitable's primary liability for its obligations under the AXA Equitable QP was recognized by AXA Equitable as a capital contribution in the amount of $211 million ($137 million, net of tax), reflecting the non-cash settlement of its net unfunded liability for the AXA Equitable QP at December 31, 2015. In addition, approximately $1,193 million ($772 million, net of tax) unrecognized net actuarial losses related to the AXA Equitable QP and accumulated in AOCI were also transferred to AXA Financial due to the Assumption Transaction. AXA Equitable remains secondarily liable for its obligations under the AXA Equitable QP and would recognize such liability in the event AXA Financial does not perform under the terms of the Assumption Agreement. AXA Equitable announced in the third quarter of 2013 that benefit accruals under the AXA Equitable QP would be discontinued after December 31, 2013. This plan curtailment resulted in a decrease in the Projected Benefit Obligation ("PBO") of approximately $29 million, which was offset against existing deferred losses in AOCI, and recognition of a $3 million curtailment loss from accelerated recognition of existing prior service costs accumulated in OCI. AB Retirement Plans AB maintains the Profit Sharing Plan for Employees of AB, a tax-qualified retirement plan for U.S. employees. Employer contributions under this plan are discretionary and generally are limited to the amount deductible for Federal income tax purposes. AB also maintains a qualified, non-contributory, defined benefit retirement plan covering current and former employees who were employed by AB in the United States prior to October 2, 2000. AB's benefits are based on years of credited service and average final base salary. Measurement Date The Company uses a December 31 measurement date for its pension plans. Contributions and Funding Policy For 2015, no cash contributions were made by AXA Equitable and AB to their respective qualified pension plans. The funding policy of the Company for its qualified pension plans is to satisfy its funding obligations each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended by the Pension Protection Act of 2006 (the "Pension Act"), F-60 and not greater than the maximum it can deduct for Federal income tax purposes. Based on the funded status of the plans at December 31, 2015, no minimum contribution is required to be made to either plan in 2016 under ERISA, as amended by the Pension Act, but management is currently evaluating if it will make contributions during 2016. Similarly, AB currently does not plan to make a contribution to its pension plan during 2016. Net Periodic Pension Expense Components of net periodic pension expense for the Company's qualified plans were as follows:
2015 2014 2013 ------- ------- ------- (IN MILLIONS) Service cost................................. $ 8 $ 9 $ 40 Interest cost................................ 93 107 99 Expected return on assets.................... (159) (155) (155) Actuarial (gain) loss........................ 1 1 1 Net amortization............................. 110 111 155 Curtailment.................................. -- -- 3 ------- ------- ------- Net Periodic Pension Expense................. $ 53 $ 73 $ 143 ======= ======= =======
Changes in PBO Changes in the PBO of the Company's qualified plans were comprised of:
DECEMBER 31, ---------------- 2015 2014 ------- ------- (IN MILLIONS) Projected benefit obligation, beginning of year....................................... $ 2,657 $ 2,463 Service cost................................. -- -- Interest cost................................ 93 107 Actuarial (gains) losses..................... (6) 264 Benefits paid................................ (169) (177) Plan amendments and curtailments............. 1 -- ------- ------- Projected Benefit Obligation............... 2,576 2,657 Transfer to AXA Financial.................... (2,447) -- ------- ------- Projected Benefit Obligation, End of Year.... $ 129 $ 2,657 ======= =======
Changes in Plan Assets/Funded Status The following table discloses the changes in plan assets and the funded status of the Company's qualified pension plans. The fair value of plan assets supporting the AXA Equitable QP liability was not impacted by the Assumption Transaction and the payment of plan benefits will continue to be made from the plan assets held in trust for the exclusive benefit of plan participants.
DECEMBER 31, ---------------- 2015 2014 ------- ------- (IN MILLIONS) Pension plan assets at fair value, beginning of year.................................... $ 2,473 $ 2,401 Actual return on plan assets................. 24 250 Contributions................................ -- 6 Benefits paid and fees....................... (175) (184) ------- ------- Pension plan assets at fair value, end of year....................................... 2,322 2,473 PBO, immediately preceding the Transfer to AXA Financial.............................. 2,576 2,657 ------- ------- Excess of PBO Over Pension Plan Assets, immediately preceding the Transfer to AXA Financial................................. (254) (184) Transfer to AXA Financial.................... $ 211 $ -- ------- ------- Excess of PBO Over Pension Plan Assets, end of year.................................... $ (43) $ (184) ======= =======
F-61 Amounts recognized in the accompanying consolidated balance sheets to reflect the funded status of these plans were accrued pension costs of $43 million and $184 million at December 31, 2015 and 2014, respectively. The aggregate PBO/accumulated benefit obligation ("ABO") and fair value of pension plan assets for plans with PBOs/ABOs in excess of those assets were $2,576 million and $2,322 million, respectively, at December 31, 2015 and $2,657 million and $2,473 million, respectively, at December 31, 2014. Unrecognized Net Actuarial (Gain) Loss The following table discloses the amounts included in AOCI at December 31, 2015 and 2014 that have not yet been recognized by AXA Equitable as components of net periodic pension cost. Not shown in the table at December 31, 2015 is approximately $1,193 million unrecognized net actuarial losses related to the AXA Equitable QP and accumulated in AOCI transferred to AXA Financial due to the Assumption Transaction.
DECEMBER 31, ------------- 2015 2014 ----- ------- (IN MILLIONS) Unrecognized net actuarial (gain) loss....... $ 49 $ 1,144 Unrecognized prior service cost (credit)..... 1 -- ----- ------- Total...................................... $ 50 $ 1,144 ===== =======
The estimated net actuarial (gain) loss and prior service cost (credit) expected to be reclassified from AOCI and recognized as components of net periodic pension cost over the next year are approximately $340,000 and $0, respectively. Pension Plan Assets The fair values of qualified pension plan assets are measured and ascribed to levels within the fair value hierarchy in a manner consistent with the invested assets of the Company that are measured at fair value on a recurring basis. See Note 2 for a description of the fair value hierarchy. 2015 -- Immediately following the Assumption Transaction, the total fair value of plan assets for the qualified pension plans of the Company at December 31, 2015 was approximately $86 million, all supporting the AB qualified retirement plan. 2014 -- The tables below disclose the allocation of the approximately $2,473 million fair value of total plan assets for the qualified pension plans of the Company and their level of observability within the fair value hierarchy at December 31, 2014. At December 31, 2014, assets classified as Level 1, Level 2 and Level 3 comprised approximately 32.4%, 57.6% and 10.0%, respectively, of qualified pension plan assets. During 2014, there were no transfers in/out of the Level 3 plan asset classification; activity in Level 3 consisted only of actual returns of approximately $22 million on those assets. Except for an investment at December 31, 2014 of approximately $1 million in a private REIT through a pooled separate account, there were no significant concentrations of credit risk arising within or across categories of qualified pension plan assets.
DECEMBER 31, ------------ 2015 2014 ----- ----- Fixed Maturities............................. 24.0% 49.4% Equity Securities............................ 56.0 38.8 Equity real estate........................... -- 9.8 Cash and short-term investments.............. -- 1.3 Other........................................ 20.0 0.7 ----- ----- Total...................................... 100.0% 100.0% ===== =====
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------- ------- ------- ------ (IN MILLIONS) DECEMBER 31, 2015: ASSET CATEGORIES Fixed Maturities: Other structured debt...................... $ -- $ 9 $ -- $ 9 Common and preferred equity.................. 24 -- -- 24 Mutual funds................................. 43 -- -- 43 Private real estate investment trusts........ -- 10 -- 10 ------- ------- ------- ------ Total..................................... $ 67 $ 19 $ -- $ 86 ======= ======= ======= ======
F-62
Level 1 Level 2 Level 3 Total ------- -------- ------- -------- (In Millions) December 31, 2014: Asset Categories Fixed Maturities: Corporate.................................. $ -- $ 833 $ -- $ 833 U.S. Treasury, government and agency....... -- 358 -- 358 States and political subdivisions.......... -- 18 -- 18 Other structured debt...................... -- 9 3 12 Common and preferred equity.................. 743 177 -- 920 Mutual funds................................. 46 -- -- 46 Private real estate investment funds......... -- -- 1 1 Private real estate investment trusts........ -- 10 242 252 Cash and cash equivalents.................... 13 -- -- 13 Short-term investments....................... -- 20 -- 20 ------- -------- ------- -------- Total..................................... $ 802 $ 1,425 $ 246 $ 2,473 ======= ======== ======= ========
Plan asset guidelines for the AB qualified retirement plan specify an allocation weighting of 30% to 60% for return seeking investments (target of 40%), 10% to 30% for risk mitigating investments (target of 15%), 0% to 25% for diversifying investments (target of 17%) and 18% to 38% for dynamic asset allocation (target of 28%). Investments in mutual funds, hedge funds (and other alternative investments), and other commingled investment vehicles are permitted under the guidelines. Investments are permitted in overlay portfolios (regulated mutual funds) to complement the long-term strategic asset allocation. This portfolio overlay strategy is designed to manage short-term portfolio risk and mitigate the effect of extreme outcomes by varying the asset allocation of a portfolio through investment in the overlay portfolios. Discount Rate and Other Assumptions The discount rate assumptions used by AXA Equitable to measure the benefits obligations and related net periodic cost of the AXA Equitable QP reflect the rates at which those benefits could be effectively settled. Projected nominal cash outflows to fund expected annual benefits payments under the AXA Equitable QP were discounted using a published high-quality bond yield curve for which AXA Equitable replaced its reference to the Citigroup-AA curve with the Citigroup Above-Median-AA curve beginning in 2014, thereby reducing the PBO of AXA Equitable's qualified pension plan and the related charge to equity to adjust the funded status of the plan by $25 million in 2014. At December 31, 2015, AXA Equitable refined its calculation of the discount rate to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient. Use of the discrete approach at December 31, 2015 produced a discount rate for the AXA Equitable QP of 3.98% as compared to a 4.00% aggregate rate, thereby increasing the net unfunded PBO of the AXA Equitable QP immediately preceding the Assumption Transaction by approximately $4 million in 2015. In fourth quarter 2015, the Society of Actuaries (SOA) released MP-2015, an update to the mortality projection scale issued last year by the SOA, indicating that while mortality data continued to show longer lives, longevity was increasing at a slower rate and lagging behind that previously suggested. For the year ended December 31, 2015 valuations of its defined benefits plans, AXA Equitable considered this new data as well as observations made from current practice regarding how best to estimate improved trends in life expectancies. As a result, AXA Equitable concluded to change the mortality projection scale used to measure and report its defined benefit obligations from 125% Scale AA to Scale BB, representing a reasonable "fit" to the results of the AXA Equitable QP mortality experience study and more aligned to current thinking in practice with respect to projections of mortality improvements. Adoption of that change increased the net unfunded PBO of the AXA Equitable QP immediately preceding the Assumption Transaction by approximately $83 million. At December 31, 2014, AXA Equitable modified its then-current use of Scale AA by adopting 125% Scale AA and introduced additional refinements to its projection of assumed mortality, including use of a full generational approach, thereby increasing the year-end 2014 valuation of the AXA Equitable QP PBO by approximately $54 million. F-63 The following table discloses assumptions used to measure the Company's pension benefit obligations and net periodic pension cost at and for the years ended December 31, 2015 and 2014. As described above, AXA Equitable refined its calculation of the discount rate for the year ended December 31, 2015 valuation of its defined benefits plans to use the discrete single equivalent discount rate for each plan as compared to its previous use of an aggregate, weighted average practical expedient.
DECEMBER 31, ----------- 2015 2014 ----- ----- Discount rates: AXA Equitable QP, immediately preceding Transfer to AXA Financial..................................................... 3.98% N/A Other AXA Equitable defined benefit plans....................... 3.66% N/A AB Qualified Retirement Plan.................................... 4.3% N/A Benefits obligations (aggregate methodology for 2014)............ N/A 3.6% Periodic cost.................................................... 3.6% 3.6% Rates of compensation increase: Benefit obligation............................................... 6.00% 6.00% Periodic cost.................................................... 6.46% 6.00% Expected long-term rates of return on pension plan assets (periodic cost).................................................. 6.75% 6.75%
The expected long-term rate of return assumption on plan assets is based upon the target asset allocation of the plan portfolio and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. Prior to 1987, participants' benefits under the AXA Equitable QP were funded through the purchase of non-participating annuity contracts from AXA Equitable. Benefit payments under these contracts were approximately $6 million, $10 million and $10 million for 2015, 2014 and 2013, respectively. Future Benefits The following table provides an estimate of future benefits expected to be paid in each of the next five years, beginning January 1, 2016, and in the aggregate for the five years thereafter, all of which are subsequent to the Assumption Transaction. These estimates are based on the same assumptions used to measure the respective benefit obligations at December 31, 2015 and include benefits attributable to estimated future employee service.
PENSION BENEFITS -------------- (IN MILLIONS) 2016............................................................. $ 6 2017............................................................. 4 2018............................................................. 5 2019............................................................. 6 2020............................................................. 5 Years 2021 - 2025................................................ 36
AXA FINANCIAL ASSUMPTIONS In addition to the Assumption Transaction, since December 31, 1999, AXA Financial has 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; AXA Equitable remains secondarily liable. AXA Equitable reimburses AXA Financial, Inc. for costs associated with all of these plans, as described in Note 11. 13)SHARE-BASED AND OTHER COMPENSATION PROGRAMS AXA and AXA Financial sponsor various share-based compensation plans for eligible employees, financial professionals and non-officer directors of AXA Financial and its subsidiaries, including the Company. AB also sponsors its own unit option plans for certain of its employees. F-64 Compensations costs for 2015, 2014 and 2013 for share-based payment arrangements as further described herein are as follows:
2015 2014 2013 ----- ----- ---- (IN MILLIONS) Performance Units/Shares..................... $ 18 $ 10 $ 43 Stock Options................................ 1 1 2 AXA Shareplan................................ 16 10 13 AB Stock Options............................. -- -- (4) AB Restricted Units.......................... 174 171 286 Other Compensation plans/(1)/................ 2 -- -- ----- ----- ---- Total Compensation Expenses.................. $ 211 $ 192 $340 ===== ===== ====
/(1)/Other compensation plans include Stock Appreciation Rights, Restricted Stock and AXA Miles. U.S. employees are granted AXA ordinary share options under the Stock Option Plan for AXA Financial Employees and Associates (the "Stock Option Plan") and are granted AXA performance shares under the AXA International Performance Share Plan (the "Performance Share Plan"). Prior to 2013, they were granted performance units under the AXA Performance Unit Plan. Non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) are 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. They also were granted stock options in years prior to 2014. Performance Units and Performance Shares 2015 GRANT. On June 19, 2015, under the terms of the 2015 Performance Share Plan, AXA awarded approximately 1.7 million unearned performance shares to employees of AXA Equitable. The extent to which 2015-2017 cumulative performance targets measuring the performance of AXA and the insurance related businesses of AXA Financial Group are achieved will determine the number of performance shares earned, which may vary in linear formula 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 shares to all participants. In 2015, the expense associated with the June 19, 2015 grant of performance shares were $8 million. SETTLEMENT OF 2012 GRANT IN 2015. On April 2, 2015, cash distributions of approximately $53 million were made to active and former AXA Equitable employees in settlement of 2,273,008 performance units earned under the terms of the AXA Performance Unit Plan 2012. 2014 GRANT. On March 24, 2014, under the terms of the 2014 Performance Share Plan, AXA awarded approximately 2 million unearned performance shares to employees of AXA Equitable. The extent to which 2014-2016 cumulative performance targets measuring the performance of AXA and the insurance-related businesses of AXA Financial Group are achieved will determine the number of performance shares earned, which may vary in linear formula between 0% and 130% of the number of performance shares at stake. The first tranche of the performance shares will vest and be settled on the third anniversary of the award date; the second tranche of these performance shares will vest and be settled on the fourth anniversary of the award date. The plan will settle in shares to all participants. In 2015 and 2014, the expense associated with the March 24, 2014 grant of performance shares was approximately $4 million and $9 million, respectively. SETTLEMENT OF 2011 GRANT IN 2014. On April 3, 2014, cash distributions of approximately $26 million were made to active and former AXA Equitable employees in settlement of 986,580 performance units earned under the terms of the AXA Performance Unit Plan 2011. 2013 GRANT. On March 22, 2013, under the terms of the 2013 Performance Share Plan, AXA awarded approximately 2.2 million unearned performance shares to employees of AXA Equitable. 119.58% of the unearned performance shares were earned based on the performance of AXA and the insurance-related business of AXA Financial Group. The earned performance shares will vest and be settled on the third anniversary of the award date. The plan will settle in shares to all participants. In 2015, 2014 and 2013, the expense associated with the March 22, 2013 grant of performance shares was approximately $7 million, $2 million and $11 million, respectively. 50% SETTLEMENT OF 2010 GRANT IN 2013. On April 4, 2013, cash distributions of approximately $7 million and share distributions of approximately $49,000 were made to active and former AXA Equitable employees in settlement of 390,460 performance units, representing the remaining 50 percent of the number of performance units earned under the terms of the AXA Performance Unit Plan 2010. Cash distributions of approximately $9 million in settlement of approximately 539,000 performance units, representing the first 50 percent of the performance units earned under the terms of the AXA Performance Unit Plan 2010 were distributed in April 2012. F-65 For 2015, 2014 and 2013, the Company recognized compensation costs of $18 million, $10 million and $43 million, respectively, for performance shares and units earned to date. The fair values of awards made under these programs 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. Remeasurements of fair value for subsequent price changes until settlement are made only for performance unit awards as they are settled in cash. The fair value of performance units earned and reported in Other liabilities in the consolidated balance sheets at December 31, 2015 and 2014 was $0 and $58 million, respectively. Approximately 2 million outstanding performance shares are at risk to achievement of 2016 performance criteria, primarily representing all of the performance shares granted June 19, 2015 and the second tranche of performance shares granted March 24, 2014, for which cumulative average 2015-2017 and 2014-2016 performance targets will determine the number of performance shares earned under those awards, respectively. Stock Options 2015 GRANT. On June 19, 2015, 442,885 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 22.90 euros. All of those options have a five-year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on June 19, 2015, 244,597 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on June 19, 2015 have a ten-year term. The weighted average grant date fair value per option award was estimated at 1.58 euros using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 23.68%, a weighted average expected term of 8.2 years, an expected dividend yield of 6.29% and a risk-free interest rate of 0.92%. The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015, the Company recognized expenses associated with the June 19, 2015 grant of options of approximately $333,000. 2014 GRANT. On March 24, 2014, 395,720 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 18.68 euros All of those options have a five-year graded vesting schedule, with one-third vesting on each of the third, fourth, and fifth anniversaries of the grant date. Of the total options awarded on March 24, 2014, 214,174 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on March 24, 2014 have a ten-year term. The weighted average grant date fair value per option award was estimated at $2.89 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 29.24%, a weighted average expected term of 8.2 years, an expected dividend yield of 6.38% and a risk-free interest rate of 1.54%. The total fair value of these options (net of expected forfeitures) of approximately $1 million is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015 and 2014, the Company recognized expenses associated with the March 24, 2014 grant of options of approximately $216,000 and $345,000, respectively. 2013 GRANT On March 22, 2013, approximately 457,000 options to purchase AXA ordinary shares were granted to employees of AXA Equitable under the terms of the Stock Option Plan at an exercise price of 13.81 euros. All of those options have a four-year graded vesting schedule, with one-third vesting on each of the second, third, and fourth anniversaries of the grant date. Approximately 246,000 of the total options awarded on March 22, 2013 are further subject to conditional vesting terms that require the AXA ordinary share price to outperform the Euro Stoxx Insurance Index over a specified period. All of the options granted on March 22, 2013 have a ten-year term. The weighted average grant date fair value per option award was estimated at $1.79 using a Black-Scholes options pricing model with modification to measure the value of the conditional vesting feature. Key assumptions used in the valuation included expected volatility of 31.27%, a weighted average expected term of 7.7 years, an expected dividend yield of 7.52% and a risk-free interest rate of 1.34%. The total fair value of these options (net of expected forfeitures) of $818,597 is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible. In 2015, 2014 and 2013, the Company recognized expenses associated with the March 22, 2013 grant of options of approximately $71,000, $131,000 and $357,000, respectively. Shares Authorized There is no limitation in the Stock Option Plan or the Equity Plan for Directors on the number of shares that may be issued pursuant to option or other grants. F-66 A summary of the activity in the AXA, AXA Financial and AB option plans during 2015 follows:
Options Outstanding ---------------------------------------------------------------------------------- AXA Ordinary Shares AXA ADRs/(3)/ AB Holding Units ---------------------------- ------------------------ -------------------------- 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 Exercisable at January 1, 2015....... 16,837.9 (Euro) 21.39 1,105.2 $ 25.53 5,942.4 $ 45.03 Options granted.............................. 444.0 (Euro) 22.90 -- $ -- 29.1 $ 31.74 Options exercised............................ (4,196.7) (Euro) 18.26 (510.7) $ 25.33 (541.1) $ 17.06 Options forfeited, net....................... (483.1) (Euro) 22.75 (553.5) $ 25.59 (23.1) $ 89.95 Options expired/reinstated................... -- -- -- -- (8.8) $ 45.45 ----------- ----------- -------------- Options Outstanding at December 31, 2015..... 12,602.1 (Euro) 21.39 41.0 $ 27.28 5,398.5 $ 47.59 =========== =============== =========== =========== ============== ========== Aggregate Intrinsic Value/(1)/............... (Euro) --/(2)/ $ 245.3 $ -- =============== =========== ========== Weighted Average Remaining Contractual Term (in years)................................. 3.0 2.36 2.90 =========== =========== ============== Options Exercisable at December 31, 2015..... 10,074.6 (Euro) 22.50 40.9 $ 27.28 4,736.7 43.04 =========== =============== =========== =========== ============== ========== Aggregate Intrinsic Value/(1)/............... (Euro) -- $ 245.3 $ -- =============== =========== ========== Weighted Average Remaining Contractual Term (in years)................................. 2.48 2.36 2.90 =========== =========== ==============
/(1)/Aggregate intrinsic value, presented in millions, is calculated as the excess of the closing market price on December 31, 2015 of the respective underlying shares over the strike prices of the option awards. /(2)/The aggregate intrinsic value on options outstanding, exercisable and expected to vest is negative and is therefore presented as zero. /(3)/AXA ordinary shares will be delivered to participants in lieu of AXA ADRs at exercise or maturity. Cash proceeds received from exercises of stock options in 2015 was $13 million. The intrinsic value related to exercises of stock options during 2015, 2014 and 2013 were approximately $200,000, $3 million and $14 million respectively, resulting in amounts currently deductible for tax purposes of approximately $70,000, $1 million, and $5 million, respectively, for the periods then ended. In 2015, 2014 and 2013, windfall tax benefits of approximately $70,000, $1 million and $5 million, respectively, resulted from exercises of stock option awards. At December 31, 2015, AXA Financial held 2,262 AXA ordinary shares in treasury at a weighted average cost of $24.86 per share, which were designated to fund future exercises of outstanding stock options. 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 AXA ordinary shares. Shown below are the relevant input assumptions used to derive the fair values of options awarded in 2015, 2014 and 2013, respectively.
AXA Ordinary Shares AB Holding Units ---------------------------- ------------------------------ 2015 2014 2013 2015 2014 2013 -------- -------- -------- ------- ------- ------------ Dividend yield............................... 6.29% 6.38% 7.52% 7.1% 8.4% 8.0 - 8.3% Expected volatility.......................... 23.68% 29.24% 31.27% 32.1% 48.9% 49.7 - 49.8% Risk-free interest rates..................... 0.92% 1.54% 1.34% 1.5% 1.5% 0.8 - 1.7% Expected life in years....................... 8.2 8.2 7.7 6.0 6.0 6.0 Weighted average fair value per option at grant date................................. $ 1.73 $ 2.89 $ 1.79 $ 4.13 $ 4.78 $ 5.44
For 2015, 2014 and 2013, the Company recognized compensation costs (credits) for stock options of $1 million, $1 million and $(2) million, respectively. As of December 31, 2015, 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 2.48 years. F-67 Restricted Awards Under The Equity Plan for Directors, AXA Financial grants non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable) restricted AXA ordinary shares Likewise, AB awards restricted AB Holding units to independent members of its General Partner. In addition, under its Century Club Plan, awards of restricted AB Holding units that vest ratably over three years are made to eligible AB employees whose primary responsibilities are to assist in the distribution of company-sponsored mutual funds. AXA Equitable has also granted restricted AXA ordinary share units ("RSUs") to certain executives. The 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. For 2015, 2014 and 2013, respectively, the Company recognized compensation costs of $174 million, $171 million and $286 million for outstanding restricted stock and 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 RSUs. At December 31, 2015, approximately 19.8 million restricted AXA ordinary shares and AB Holding unit awards remain unvested. At December 31, 2015, approximately $36 million of unrecognized compensation cost related to these unvested awards, net of estimated pre-vesting forfeitures, is expected to be recognized over a weighted average period of 3.20 years. The following table summarizes restricted AXA ordinary share activity for 2015. In addition, approximately 44,333 RSUs were granted during 2015 with graded vesting over a 3-year service period.
WEIGHTED SHARES OF AVERAGE RESTRICTED GRANT DATE STOCK FAIR VALUE ---------- ---------- Unvested as of January 1, 2015............... 51,460 $ 15.37 Granted...................................... 10,578 $ 23.25 Vested....................................... 28,028 $ 14.63 ---------- ---------- Unvested as of December 31, 2015............. 34,010 $ 18.43 ========== ==========
Restricted AXA Ordinary shares vested in 2015, 2014 and 2013 had aggregate vesting date fair values of approximately $1 million, $1 million and $1 million, respectively. Unrestricted Awards Under the Equity Plan for Directors, AXA Financial provides a stock retainer to non-officer directors of AXA Financial and certain subsidiaries (including AXA Equitable). Pursuant to the terms of the retainer, the non-officer directors receive AXA ordinary shares valued at $55,000 each year, paid on a semi-annual basis. These shares are not subject to any vesting requirement or other restriction. For the years ended December 31, 2015, 2014 and 2013, the Company recognized compensation expense of approximately $327,800, $350,300, and $350,000 for these unrestricted share awards. AXA Shareplan 2015 AXA SHAREPLAN. In 2015, eligible employees and financial professionals of participating AXA Financial subsidiaries were offered the opportunity to purchase newly-issued AXA stock, subject to plan limits, under the terms of AXA Shareplan 2015. Eligible employees and financial professionals could have reserved a share purchase during the reservation period from August 31, 2015 through September 14, 2015 and could have canceled their reservation or elected to make a purchase for the first time during the retraction/subscription period from October 22, 2015 through October 27, 2015. The U.S. dollar purchase price was determined by applying the U.S. dollar/Euro forward exchange rate on October 21, 2015 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 $20.17 per share. "Investment Option B" permitted participants to purchase AXA ordinary shares at a 8.57% formula discounted price of $23.05 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 2015 which is July 1, 2020. All subscriptions became binding and irrevocable on October 27, 2015. F-68 The Company recognized compensation expense of $16 million, $10 million and $13 million in 2015, 2014 and 2013 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 2015, 2014 and 2013 primarily invested under Investment Option B for the purchase of approximately 5 million, 5 million and 5 million AXA ordinary shares, respectively. AXA Miles Program 2012 On March 16, 2012, under the terms of the AXA Miles Program 2012, AXA granted 50 AXA Miles to every employee and eligible financial professional of AXA Group for the purpose of enhancing long-term employee-shareholder engagement. Each AXA Mile represents a phantom share of AXA stock that will convert to an actual AXA ordinary share at the end of a four-year vesting period provided the employee or financial professional remains in the employ of the company or has retired from service. Half of each AXA Miles grant, or 25 AXA Miles, were subject to an additional vesting condition that required improvement in at least one of two AXA performance metrics in 2012 as compared to 2011. This vesting condition has been satisfied. The total fair value of these AXA Miles awards of approximately $6 million, net of expected forfeitures, is charged to expense over the shorter of the vesting term or the period up to the date at which the participant becomes retirement eligible and is updated to reflect changes in respect of the expectation for meeting the predefined performance conditions. In 2015, 2014 and 2013, respectively, the expense associated with the March 16, 2012 grant of AXA Miles was approximately $281,000, $295,000 and $278,000. AB Long-term Incentive Compensation Plans AB maintains several unfunded long-term incentive compensation plans for the benefit of certain eligible employees and executives. The AB Capital Accumulation Plan was frozen on December 31, 1987 and no additional awards have been made, however, ACMC, LLC ("ACMC"), an indirect, wholly-owned subsidiary of AXA Equitable, is obligated to make capital contributions to AB in amounts equal to benefits paid under this plan as well as other assumed contractual unfunded deferred compensation arrangements covering certain executives. Prior to changes implemented by AB in fourth quarter 2011, as further described below, compensation expense for the remaining active plans was recognized on a straight-line basis over the applicable vesting period. Prior to 2009, participants in these plans designated the percentages of their awards to be allocated among notional investments in Holding units or certain investment products (primarily mutual funds) sponsored by AB. Beginning in 2009, annual awards granted under the Amended and Restated AB Incentive Compensation Award Program were in the form of restricted Holding units. In fourth quarter 2011, AB implemented changes to AB's employee long-term incentive compensation award. AB amended all outstanding year-end deferred incentive compensation awards of active employees (i.e., those employees employed as of December 31, 2011), so that employees who terminate their employment or are terminated without cause may continue to vest, so long as the employees do not violate the agreements and covenants set forth in the applicable award agreement, including restrictions on competition, employee and client solicitation, and a claw-back for failing to follow existing risk management policies. This amendment resulted in the immediate recognition in the fourth quarter of the cost of all unamortized deferred incentive compensation on outstanding awards from prior years that would otherwise have been expensed in future periods. In addition, awards granted in 2012 contain the same vesting provisions and, accordingly, the Company's annual incentive compensation expense reflect 100% of the expense associated with the deferred incentive compensation awarded in each year. This approach to expense recognition closely matches the economic cost of awarding deferred incentive compensation to the period in which the related service is performed. AB engages in open-market purchases of AB Holding L.P. ("AB Holding") units ("Holding units") to help fund anticipated obligations under its incentive compensation award program, for purchases of Holding units from employees and other corporate purposes. During 2015 and 2014, AB purchased 8.5 million and 3.6 million Holding units for $218 million and $93 million respectively. These amounts reflect open-market purchases of 5.8 million and 0.3 million Holding units for $151 million and $7 million, respectively, with the remainder relating to purchases of Holding units from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, offset by Holding units purchased by employees as part of a distribution reinvestment election. During 2015, AB granted to employees and eligible directors 7.4 million restricted AB Holding unit awards (including 7.0 million granted in December for 2015 year-end awards). During 2014, AB granted to employees and eligible directors 7.6 million restricted AB Holding awards (including 6.6 million granted in December 2013 for 2014 year-end awards). Prior to third quarter 2014, AB funded these awards by allocating previously repurchased Holding units that had been held in its consolidated rabbi trust. During 2015 and 2014, AB Holding issued 0.5 million and 1.1 million Holding units, respectively, upon exercise of options to buy AB Holding units. AB Holding used the proceeds of $9 million and $19 million, respectively, received from employees as payment in cash for the exercise price to purchase the equivalent number of newly-issued Holding units. F-69 Effective July 1, 2013, management of AB and AB Holding retired all unallocated Holding units in AB's consolidated rabbi trust. To retire such units, AB delivered the unallocated Holding units held in its consolidated rabbi trust to AB Holding in exchange for the same amount of AB units. Each entity then retired its respective units. As a result, on July 1, 2013, each of AB's and AB Holding's units outstanding decreased by approximately 13.1 million units. AB and AB Holding intend to retire additional units as AB purchases Holding units on the open market or from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards, if such units are not required to fund new employee awards in the near future. If a sufficient number of Holding units is not available in the rabbi trust to fund new awards, AB Holding will issue new Holding units in exchange for newly-issued AB units, as was done in December 2013. The Company recorded compensation and benefit expenses in connection with these long-term incentive compensation plans of AB totaling $173 million, $173 million and $156 million for 2015, 2014 and 2013, respectively. The cost of the 2015 awards made in the form of restricted Holding units was measured, recognized, and disclosed as a share-based compensation program. On July 1, 2010, the AB 2010 Long Term Incentive Plan ("2010 Plan"), as amended, was established, under which various types of Holding unit-based awards have been available for grant to its employees and eligible directors, including restricted or phantom restricted Holding unit awards, Holding unit appreciation rights and performance awards, and options to buy Holding units. The 2010 Plan will expire on June 30, 2020 and no awards under the 2010 Plan will be made after that date. Under the 2010 Plan, the aggregate number of Holding units with respect to which awards may be granted is 60 million, including no more than 30 million newly-issued Holding units. As of December 31, 2015, 302,443 options to buy Holding units had been granted and 47.2 million Holding units net of forfeitures, were subject to other Holding unit awards made under the 2010 Plan. Holding unit-based awards (including options) in respect of 12.5 million Holding units were available for grant as of December 31, 2015. 14)INCOME TAXES A summary of the income tax (expense) benefit in the consolidated statements of earnings (loss) follows:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Income tax (expense) benefit: Current (expense) benefit.................. $ (36) $ (552) $ 197 Deferred (expense) benefit................. (150) (1,143) 1,876 ---------- --------- ---------- Total........................................ $ (186) $ (1,695) $ 2,073 ========== ========= ==========
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 35.0%. The sources of the difference and their tax effects are as follows:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Expected income tax (expense) benefit........ $ (578) $ (2,140) $ 1,858 Noncontrolling interest...................... 124 119 101 Separate Accounts investment activity........ 181 116 122 Non-taxable investment income (loss)......... 8 12 20 Tax audit interest........................... 1 (6) (14) State income taxes........................... 1 (4) (6) AB Federal and foreign taxes................. 2 4 2 Tax settlement............................... 77 212 -- Other........................................ (2) (8) (10) ---------- --------- ---------- Income tax (expense) benefit................. $ (186) $ (1,695) $ 2,073 ========== ========= ==========
In second quarter 2015, the Company recognized a tax benefit of $77 million related to settlement with the IRS on the appeal of proposed adjustments to the Company's 2004 and 2005 Federal corporate income tax returns. In second quarter 2014 the Company recognized a tax benefit of $212 million related to settlement of the IRS audit for tax years 2006 and 2007. F-70 In February 2014, the IRS released Revenue Ruling 2014-7, eliminating the IRS' previous guidance related to the methodology to be followed in calculating the Separate Account dividends received deduction ("DRD"). However, there remains the possibility that the IRS and the U.S. Treasury will address, through subsequent guidance, the issues previously raised related to the calculation of the DRD. The ultimate timing and substance of any such guidance is unknown. It is also possible that the calculation of the Separate Account DRD will be addressed in future legislation. Any such guidance or legislation could result in the elimination or reduction on either a retroactive or prospective basis of the Separate Account DRD tax benefit that the Company receives. The components of the net deferred income taxes are as follows:
DECEMBER 31, 2015 December 31, 2014 ------------------------- ------------------------- ASSETS LIABILITIES Assets Liabilities --------- --------------- --------- --------------- (IN MILLIONS) Compensation and related benefits............ $ 110 $ -- $ 150 $ -- Reserves and reinsurance..................... -- 1,740 -- 1,785 DAC.......................................... -- 1,253 -- 1,162 Unrealized investment gains or losses........ -- 134 -- 614 Investments.................................. -- 1,437 -- 1,490 Net operating losses and credits............. 424 -- 512 -- Other........................................ -- 25 112 -- --------- --------------- --------- --------------- Total........................................ $ 534 $ 4,589 $ 774 $ 5,051 ========= =============== ========= ===============
As of December 31, 2015, the Company had $424 million of AMT credits which do not expire. The Company does not provide income taxes on the undistributed earnings of non-U.S. corporate subsidiaries except to the extent that such earnings are not permanently invested outside the United States. As of December 31, 2015, $255 million of accumulated undistributed earnings of non-U.S. corporate subsidiaries were permanently invested outside the United States. At existing applicable income tax rates, additional taxes of approximately $103 million would need to be provided if such earnings were remitted. At December 31, 2015 and 2014, of the total amount of unrecognized tax benefits $344 million and $397 million, respectively, would affect the effective rate. 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, 2015 and 2014 were $52 million and $77 million, respectively. For 2015, 2014 and 2013, respectively, there were $(25) million, $(43) million and $15 million in interest expense related to unrecognized tax benefits. A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows:
2015 2014 2013 --------- --------- -------- (IN MILLIONS) Balance at January 1,........................ $ 475 $ 592 $ 573 Additions for tax positions of prior years... 44 56 57 Reductions for tax positions of prior years.. (101) (181) (38) Additions for tax positions of current year.. -- 8 -- --------- --------- -------- Balance at December 31,...................... $ 418 $ 475 $ 592 ========= ========= ========
During the second quarter of 2015, the Company reached a settlement with the IRS on the appeal of proposed adjustments to the Company's 2004 and 2005 Federal corporate income tax returns. The IRS commenced their examination of the 2008 and 2009 tax years in 2015. It is reasonably possible that the total amounts of unrecognized tax benefit 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. F-71 15)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AOCI represents cumulative gains (losses) on items that are not reflected in earnings (loss). The balances for the past three years follow:
DECEMBER 31, ----------------------------------- 2015 2014 2013 ---------- ---------- ----------- (IN MILLIONS) Unrealized gains (losses) on investments..... $ 241 $ 1,122 $ 153 Foreign currency translation adjustments..... (58) (33) (12) Defined benefit pension plans................ (12) (780) (757) ---------- ---------- ----------- Total accumulated other comprehensive income (loss)..................................... 171 309 (616) ---------- ---------- ----------- Less: Accumulated other comprehensive (income) loss attributable to noncontrolling interest.................... 57 42 13 ---------- ---------- ----------- Accumulated Other Comprehensive Income (Loss) Attributable to AXA Equitable....... $ 228 $ 351 $ (603) ========== ========== ===========
Immediately preceding the Assumption Transaction, the AXA Equitable QP had approximately $1,193 million unrecognized net actuarial losses in AOCI that were transferred to AXA Financial, resulting in an increase in AOCI and a decrease in additional paid in capital of $1,193 million ($772 million net of tax), the net impact to AXA Equitable's consolidated Shareholder's Equity was $0. The components of OCI for the past three years, net of tax, follow:
2015 2014 2013 ---------- --------- ---------- (IN MILLIONS) Foreign currency translation adjustments: Foreign currency translation gains (losses) arising during the period......... $ (25) $ (21) $ (12) (Gains) losses reclassified into net earnings (loss) during the period.......... -- -- -- ---------- --------- ---------- Foreign currency translation adjustment..... (25) (21) (12) ---------- --------- ---------- Change in net unrealized gains (losses) on investments: Net unrealized gains (losses) arising during the year............................ (1,020) 1,043 (1,550) (Gains) losses reclassified into net earnings (loss) during the year/(1)/....... 12 37 49 ---------- --------- ---------- Net unrealized gains (losses) on investments.. (1,008) 1,080 (1,501) Adjustments for policyholders liabilities, DAC, insurance liability loss recognition and other................................... 127 (111) 302 ---------- --------- ---------- Change in unrealized gains (losses), net of adjustments and (net of deferred income tax expense (benefit) of $(480), $529 and $(654))..................................... (881) 969 (1,199) ---------- --------- ---------- Change in defined benefit plans: Net gain (loss) arising during the year..... -- (95) 198 Prior service cost arising during the year.. -- -- -- Less: reclassification adjustments to net earnings (loss) for:/(2)/ Amortization of net (gains) losses included in net periodic cost............ (4) 72 101 Amortization of net prior service credit included in net periodic cost............ -- -- -- ---------- --------- ---------- Change in defined benefit plans (net of deferred income tax expense (benefit) of $(2), $(15) and $161)....................... (4) (23) 299 ---------- --------- ---------- Total other comprehensive income (loss), net of income taxes............................. (910) 925 (912) Less: Other comprehensive (income) loss attributable to noncontrolling interest..... 15 29 (8) ---------- --------- ---------- Other Comprehensive Income (Loss) Attributable to AXA Equitable............... $ (895) $ 954 $ (920) ========== ========= ==========
/(1)/See "Reclassification adjustments" in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $(6) million, $(19) million and $(26) million for 2015, 2014 and 2013, respectively. /(2)/These AOCI components are included in the computation of net periodic costs (see Note 12). Reclassification amounts presented net of income tax expense (benefit) of $2 million, $(39) million and $(54) million for 2015, 2014 and 2013, respectively. Investment gains and losses reclassified from AOCI to net earnings (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 earnings (loss). Amounts reclassified from AOCI to net earnings (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 earnings (loss). Amounts presented in the table above are net of tax. F-72 16)COMMITMENTS AND CONTINGENT LIABILITIES 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 2016 and the four successive years are $216 million, $215 million, $201 million, $189 million, $166 million and $946 million thereafter. Minimum future sublease rental income on these non-cancelable operating leases for 2016 and the four successive years is $32 million, $31 million, $30 million, $30 million, $13 million and $67 million thereafter. Restructuring As part of the Company's on-going efforts to reduce costs and operate more efficiently, from time to time, management has approved and initiated plans to reduce headcount and relocate certain operations. In 2015, 2014 and 2013, respectively, AXA Equitable recorded $3 million, $42 million and $85 million pre-tax charges related to severance and lease costs. The amounts recorded in 2014 and 2013 included pre-tax charges of $25 million and $52 million, respectively, related to the reduction in office space in the Company's 1290 Avenue of the Americas, New York, NY headquarters. The restructuring costs and liabilities associated with the Company's initiatives were as follows:
DECEMBER 31, ----------------------------- 2015 2014 2013 -------- --------- -------- (IN MILLIONS) Balance, beginning of year................... $ 113 $ 122 $ 52 Additions.................................... 10 21 140 Cash payments................................ (32) (24) (66) Other reductions............................. (2) (6) (4) -------- --------- -------- Balance, End of Year......................... $ 89 $ 113 $ 122 ======== ========= ========
During 2013, AB recorded $28 million of pre-tax real estate charges related to a global office space consolidation plan. The charges reflected the net present value of the difference between the amount of AB's on-going contractual operating lease obligations for this space and their estimate of current market rental rates, as well as the write-off of leasehold improvements, furniture and equipment related to this space offset by changes in estimates relating to previously recorded real estate charges. Included in the 2013, real estate charge was a charge of $17 million related to additional sublease losses resulting from the extension of sublease marketing periods. AB will compare current sublease market conditions to those assumed in their initial write-offs and record any adjustments if necessary. Guarantees and Other Commitments The Company provides certain guarantees or commitments to affiliates and others. At December 31, 2015, these arrangements include commitments by the Company to provide equity financing of $568 million to certain limited partnerships 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, 2015. The Company had $866 million of commitments under existing mortgage loan agreements at December 31, 2015. AB maintains a guarantee in connection with the AB Credit Facility. If SCB LLC is unable to meet its obligations, AB will pay the obligations when due or on demand. In addition, AB maintains guarantees totaling $400 million for the three of SCB LLC's three uncommitted lines of credit. AB maintains a guarantee with a commercial bank, under which it guarantees the obligations in the ordinary course of business of SCB LLC, Sanford C. Bernstein Limited ("SCBL") and AllianceBernstein Holdings (Cayman) Ltd. ("AB Cayman"). AB also maintains three additional guarantees with other commercial banks under which it guarantees approximately $361 million of obligations for SCBL. In the event that SCB LLC, SCBL or AB Cayman is unable to meet its obligations, AB will pay the obligations when due or on demand. F-73 During 2009, AB entered into a subscription agreement under which it committed to invest up to $35 million, as amended in 2011, in a venture capital fund over a six-year period. As of December 31, 2015 AB had funded $32 million of this commitment. During 2010, as general partner of the AB U.S. Real Estate L.P. (the "Real Estate Fund"), AB committed to invest $25 million in the Real Estate Fund. As of December 31, 2015, AB had funded $1 million of this commitment. During 2012, AB entered into an investment agreement under which it committed to invest up to $8 million in an oil and gas fund over a three-year period. As of December 31, 2015, AB had funded $6 million of this commitment. In December 2015, AB provided a 60 day guarantee to a commercial bank for borrowings by a company-sponsored fund up to a maximum of $50 million. The bank provided the fund with a limited partner subscription line for the unfunded commitments of the fund's limited partners. The fund is expected to repay the bank by calling capital from the limited partners. To the extent the fund is not able to repay the loan to the bank, AB will repay the loan under the guarantee, up to $50 million. The fund will repay AB for all amounts paid by AB under the guarantee. AB has not been required to perform under any of the above agreements and currently have no liability in connection with these agreements. 17)LITIGATION INSURANCE LITIGATION A lawsuit was filed in the United States District Court of the District of New Jersey in July 2011, entitled Mary Ann Sivolella v. AXA Equitable Life Insurance Company and AXA Equitable Funds Management Group, LLC ("AXA Equitable FMG") ("Sivolella Litigation"). The lawsuit was filed derivatively on behalf of eight funds. The lawsuit seeks recovery under Section 36(b) of the Investment Company Act of 1940, as amended (the "Investment Company Act"), for alleged excessive fees paid to AXA Equitable and AXA Equitable FMG for investment management services. In November 2011, plaintiff filed an amended complaint, adding claims under Sections 47(b) and 26(f) of the Investment Company Act, as well as a claim for unjust enrichment. In addition, plaintiff purports to file the lawsuit as a class action in addition to a derivative action. In the amended complaint, plaintiff seeks recovery of the alleged overpayments, rescission of the contracts, restitution of all fees paid, interest, costs, attorney fees, fees for expert witnesses and reserves the right to seek punitive damages where applicable. In December 2011, AXA Equitable and AXA Equitable FMG filed a motion to dismiss the amended complaint. In May 2012, the Plaintiff voluntarily dismissed her claim under Section 26(f) seeking restitution and rescission under Section 47(b) of the 1940 Act. In September 2012, the Court denied the defendants' motion to dismiss as it related to the Section 36(b) claim and granted the defendants' motion as it related to the unjust enrichment claim. In January 2013, a second lawsuit was filed in the United States District Court of the District of New Jersey entitled Sanford et al. v. AXA Equitable FMG ("Sanford Litigation"). The lawsuit was filed derivatively on behalf of eight funds, four of which are named in the Sivolella lawsuit as well as four new funds, and seeks recovery under Section 36(b) of the Investment Company Act for alleged excessive fees paid to AXA Equitable FMG for investment management services. In light of the similarities of the allegations in the Sivolella and Sanford Litigations, the parties and the Court agreed to consolidate the two lawsuits. In April 2013, the plaintiffs in the Sivolella and Sanford Litigations amended the complaints to add additional claims under Section 36(b) of the Investment Company Act for recovery of alleged excessive fees paid to AXA Equitable FMG in its capacity as administrator of EQ Advisors Trust. The Plaintiffs seek recovery of the alleged overpayments, or alternatively, rescission of the contract and restitution of the excessive fees paid, interest, costs and fees. In January 2015, defendants filed a motion for summary judgment as well as various motions to strike certain of the Plaintiffs' experts in the Sivolella and Sanford Litigations. Also in January 2015, two Plaintiffs in the Sanford Litigation filed a motion for partial summary judgment relating to the EQ/Core Bond Index Portfolio as well as motions in limine to bar admission of certain documents and preclude the testimony of one of defendants' experts. In August 2015, the Court denied Plaintiffs' motions in limine and also denied both parties motions for summary judgment. The trial commenced in January 2016 and testimony concluded in February 2016. Closing arguments are scheduled to occur in May 2016 following post-trial briefing. In April 2014, a lawsuit was filed in the United States District Court for the Southern District of New York, entitled Andrew Yale, on behalf of himself and all others similarly situated v. AXA Life Insurance Company F/K/A AXA Equitable Life Insurance Company. The lawsuit is a putative class action on behalf of all persons and entities that, between 2011 and March 11, 2014, directly or indirectly, purchased, renewed or paid premiums on life insurance policies issued by AXA Equitable (the "Policies"). The complaint alleges that AXA Equitable did not disclose in its New York statutory annual statements or elsewhere that the collateral for certain reinsurance transactions with affiliated reinsurance companies was supported by parental guarantees, an omission that allegedly caused AXA Equitable to misrepresent its "financial condition" and "legal reserve system." The lawsuit seeks recovery under Section 4226 of the New York Insurance Law of all premiums paid by the class for the Policies during the relevant period. In June 2014, AXA Equitable filed a motion to dismiss the complaint F-74 on procedural grounds, which was denied in October 2014. In February 2015, plaintiffs substituted two new named plaintiffs and the action is now entitled Ross v. AXA Equitable Life Insurance Company. In July 2015, the Court granted AXA Equitable's motion to dismiss for lack of subject matter jurisdiction. In August 2015, plaintiffs filed a notice of appeal. In April 2015, the same plaintiffs' law firm filed a second action in the United States District Court for the Southern District of New York on behalf of a putative class of variable annuity holders with "Guaranteed Benefits Insurance Riders," entitled Calvin W. Yarbrough, on behalf of himself and all others similarly situated v. AXA Equitable Life Insurance Company. The new action covers the same class period, makes substantially the same allegations, and seeks the same relief (return of all premium paid by class members) as the first action on behalf of life insurance policyholders. In October 2015, the Court, on its own, dismissed the Yarbrough litigation on similar grounds as Ross. In October 2015, plaintiff filed a notice of appeal. A lawsuit was filed in the Supreme Court of the State of New York, County of Westchester, Commercial Division ("New York state court") in June 2014, entitled Jessica Zweiman, Executrix of the Estate of Anne Zweiman, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company. The lawsuit is a putative class action on behalf of "all persons who purchased variable annuities from AXA Equitable which subsequently became subject to the ATM Strategy, and who suffered injury as a result thereof." Plaintiff asserts that AXA Equitable breached the variable annuity contracts by implementing the volatility management tool. The lawsuit seeks unspecified damages. In July 2014, AXA Equitable filed a notice of removal to the United States District Court for the Southern District of New York. In September 2015, the New York federal district court granted AXA Equitable's motion to dismiss the Complaint. In October 2015, plaintiff filed a notice of appeal. In February 2016, plaintiff voluntarily dismissed her appeal. In November 2014, one of the plaintiff's law firms in Zweiman filed a separate lawsuit entitled Arlene Shuster, on behalf of herself and all others similarly situated v. AXA Equitable Life Insurance Company in the Superior Court of New Jersey, Camden County ("New Jersey state court"). This lawsuit is a putative class action on behalf of "all AXA [Equitable] variable life insurance policyholders who allocated funds from their Policy Accounts to investments in AXA's Separate Accounts, which were subsequently subjected to volatility-management strategy, and who suffered injury as a result thereof" and asserts a claim for breach of contract similar to the claim in Zweiman. In February 2016, the New Jersey State Court dismissed the Complaint. In August 2015, another of the plaintiff's law firms in Zweiman filed a third lawsuit entitled Richard T. O'Donnell, on behalf of himself and all other similarly situated v. AXA Equitable Life Insurance Company in Connecticut Superior Court, Judicial Division of New Haven ("Connecticut state court"). This lawsuit purports to cover the same class definition, makes substantially the same allegations, and seeks the same relief as in Zweiman. In November 2016, the Connecticut federal district court transferred the action to the United States District Court for the Southern District of New York. ALLIANCEBERNSTEIN LITIGATION During first quarter 2012, AB received a legal letter of claim (the "Letter of Claim") sent on behalf of Philips Pension Trustees Limited and Philips Electronics UK Limited ("Philips"), a former pension fund client, alleging that AB Limited (one of AB's subsidiaries organized in the United Kingdom) was negligent and failed to meet certain applicable standards of care with respect to the initial investment in, and management of, a (Pounds)500 million portfolio of U.S. mortgage-backed securities. Philips has alleged damages ranging between $177 million and $234 million, plus compound interest on an alleged $125 million of realized losses in the portfolio. On January 2, 2014, Philips filed a claim form ("Claim") in the High Court of Justice in London, England, which formally commenced litigation with respect to the allegations in the Letter of Claim. AB believes that it has strong defenses to these claims, which were set forth in AB's October 12, 2012 response to the Letter of Claim and AB's June 27, 2014 Statement of Defence in response to the Claim, and AB intends to defend this matter vigorously. --------------------------------------------------------- Although the outcome of litigation and regulatory matters generally cannot be predicted with certainty, management intends to vigorously defend against the allegations made by the plaintiffs in the actions described above and believes that the ultimate resolution of the matters described therein involving AXA Equitable and/or its subsidiaries should not have a material adverse effect on the consolidated financial position of AXA Equitable. Management cannot make an estimate of loss, if any, or predict whether or not any of the matters described above will have a material adverse effect on AXA Equitable's consolidated results of operations in any particular period. In addition to the matters described above, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against life and health insurers and asset managers in the jurisdictions in which AXA Equitable and its respective subsidiaries do business. These actions and proceedings involve, 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. In addition, a number of lawsuits, claims, assessments and regulatory inquiries have been filed or commenced against businesses in the jurisdictions in which AXA Equitable and its subsidiaries do business, including actions and proceedings related to alleged discrimination, alleged breaches of fiduciary duties in connection with qualified pension F-75 plans and other general business-related matters. Some of the matters have resulted in the award of substantial judgments, including material amounts of punitive damages, or in substantial settlements. Courts, juries and regulators often have substantial discretion in awarding damage awards and fines, including punitive damages. AXA Equitable and its subsidiaries from time to time are involved in such actions and proceedings. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on AXA Equitable's consolidated financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards and regulatory fines that bear little or no relation to actual economic damages incurred, continues to create the potential for an unpredictable judgment in any given matter. 18)INSURANCE GROUP STATUTORY FINANCIAL INFORMATION AXA Equitable is restricted as to the amounts it may pay as dividends to AXA Financial. Under New York Insurance law, a domestic life insurer may not, without prior approval of the NYDFS, pay a dividend to its shareholders exceeding an amount calculated based on a statutory formula. This formula would permit AXA Equitable to pay shareholder dividends not greater than approximately $1,525 million during 2016. Payment of dividends exceeding this amount requires the insurer to file a notice of its intent to declare such dividends with the NYDFS who then has 30 days to disapprove the distribution. For 2015, 2014 and 2013, respectively, AXA Equitable's statutory net income (loss) totaled $2,038 million, $1,664 million and $(28) million. Statutory surplus, capital stock and Asset Valuation Reserve ("AVR") totaled $5,895 million and $5,793 million at December 31, 2015 and 2014, respectively. In 2015, AXA Equitable paid $767 million in shareholder dividends and transferred approximately 10.0 million in Units of AB (fair value of $245 million) in the form of a dividend to AEFS. In 2014, AXA Equitable paid $382 million in shareholder dividends. In 2013, AXA Equitable paid $234 million in shareholder dividends and transferred approximately 10.9 million in Units of AB (fair value of $234 million) in the form of a dividend to AEFS. At December 31, 2015, AXA Equitable, in accordance with various government and state regulations, had $55 million of securities on deposit with such government or state agencies. In 2015, AXA Equitable repaid $200 million of third party surplus notes at maturity. In 2014 and 2013 AXA Equitable, with the approval of the NYDFS, repaid at par value plus accrued interest of $825 million and $500 million, respectively, of outstanding surplus notes to AXA Financial. At December 31, 2015 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, 2015. 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 U.S. 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 reflects 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. F-76 19)BUSINESS SEGMENT INFORMATION The following tables reconcile segment revenues and earnings (loss) from operations before income taxes to total revenues and earnings (loss) as reported on the consolidated statements of earnings (loss) and segment assets to total assets on the consolidated balance sheets, respectively.
2015 2014 2013 ---------- ----------- ---------- (IN MILLIONS) SEGMENT REVENUES: Insurance/(1)/............................... $ 6,822 $ 12,656 $ (54) Investment Management/(2)/................... 3,025 3,011 2,915 Consolidation/elimination.................... (28) (27) (21) ---------- ----------- ---------- Total Revenues............................... $ 9,819 $ 15,640 $ 2,840 ========== =========== ==========
/(1)/Includes investment expenses charged by AB of approximately $45 million, $40 million and $37 million for 2015, 2014 and 2013, respectively, for services provided to the Company. /(2)/Intersegment investment advisory and other fees of approximately $73 million, $67 million and $58 million for 2015, 2014 and 2013, respectively, are included in total revenues of the Investment Management segment.
2015 2014 2013 ----------- ---------- ----------- (IN MILLIONS) SEGMENT EARNINGS (LOSS) FROM OPERATIONS, BEFORE INCOME TAXES: Insurance.................................... $ 1,033 $ 5,512 $ (5,872) Investment Management/(1)/................... 618 603 564 Consolidation/elimination.................... (1) -- (1) ----------- ---------- ----------- Total Earnings (Loss) from Operations, before Income Taxes........................ $ 1,650 $ 6,115 $ (5,309) =========== ========== ===========
/(1)/Net of interest expenses incurred on securities borrowed.
DECEMBER 31, ---------------------- 2015 2014 ---------- ---------- (IN MILLIONS) SEGMENT ASSETS: Insurance.............................................. $ 182,738 $ 184,018 Investment Management.................................. 11,895 11,990 Consolidation/elimination.............................. (7) (3) ---------- ---------- Total Assets........................................... $ 194,626 $ 196,005 ========== ==========
In accordance with SEC regulations, the Investment Management segment includes securities with a fair value of $460 million and $415 million which have been segregated in a special reserve bank custody account at December 31, 2015 and 2014, respectively, for the exclusive benefit of securities broker-dealer or brokerage customers under the Exchange Act. 20)QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The quarterly results of operations for 2015 and 2014 are summarized below:
THREE MONTHS ENDED ------------------------------------------------- MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31 ---------- ----------- ------------ ------------ (IN MILLIONS) 2015 ---- Total Revenues............................... $ 3,567 $ 220 $ 5,714 $ 318 ========== =========== =========== ============ Total benefits and other deductions.......... $ 2,437 $ 1,973 $ 2,375 $ 1,384 ========== =========== =========== ============ Net earnings (loss).......................... $ 854 $ (1,025) $ 2,275 $ (640) ========== =========== =========== ============ 2014 ---- Total Revenues............................... $ 3,706 $ 3,524 $ 3,754 $ 4,656 ========== =========== =========== ============ Total benefits and other deductions.......... $ 2,195 $ 2,342 $ 2,186 $ 2,802 ========== =========== =========== ============ Net earnings (loss).......................... $ 1,056 $ 1,038 $ 1,077 $ 1,249 ========== =========== =========== ============
F-77 PART C OTHER INFORMATION Item 29. Financial Statements and Exhibits. (a) Financial Statements included in Part B for both the Member Retirement Account Program contract and the Retirement Investment Account Program contract, respectively: The financial statements of AXA Equitable Life Insurance Company and Separate Account Nos. 10 (Pooled), 4 (Pooled), 3 (Pooled) and 66 are included in each of the above contract's Statement of Additional Information, respectively. (b) Exhibits. The following exhibits correspond to those required by paragraph (b) of item 29 as to exhibits in Form N-3: 1. Resolutions of the Board of Directors of AXA Equitable Life Insurance Company ("AXA Equitable") authorizing the establishment of Separate Account Nos. 3, 4 and 10 and additional similar separate accounts, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant, filed April 14, 1986. 2. Not applicable. 3. Not applicable. 4 (a) Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable Life Insurance Company ("AXA Equitable"), AXA Distributors, LLC and AXA Advisors dated July 15,2002 is incorporated herein by reference 13 Post-Effective Amendment No. 25 to the EQ Advisor's Trust Registration Statement on Form N-1A (File No. 333-17217 and 811-07953), filed on February 7,2003. (a)(i) Amendment No. 1, dated May 2,2003, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 28 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 10,2004. (a)(ii)Amendment No. 2, dated July 9,2004, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 35 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on October 15,2004. (a)(iii)Amendment No. 3, dated October 1,2004, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 35 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on October 15, 2004. (a)(iv)Amendment No. 4, dated May 1,2005, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 37 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on April 7,2005. (a)(v) Amendment No. 5, dated September 30, 2005, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 44 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on April 5,2006. (a)(vi)Amendment No. 6, dated August 1, 2006, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 51 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 2, 2007. (a)(vii)Amendment No. 7, dated May 1, 2007, to the Amended and Restated Participation Agreement among EQ Advisors Trust, ,AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 53 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on April 27, 2007. (a)(viii)Amendment No. 8, dated January 1, 2008, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15, 2002 incorporated herein by reference to Post-Effective Amendment No. 56 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on December 27, 2007. (a)(ix)Amendment No. 9, dated May 1, 2008, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15, 2002 incorporated herein by reference to Post-Effective Amendment No. 61 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 13, 2009. (a)(x) Amendment No. 10, dated January 1,2009, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 64 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on March 16, 2009. (a)(xi)Amendment No. 11, dated May 1,2009, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 67 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on April 15, 2009. (a)(xii)Amendment No. 12, dated September 29,2009, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 70 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on January 21, 2010. (a)(xiii)Amendment No. 13, dated August 16, 2010, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15, 2002 incorporated herein by reference to Post-Effective Amendment No. 77 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 3, 2011. (a)(xiv)Amendment No. 14, dated December 15,2010, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 77 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 3, 2011. (a)(xv)Amendment No. 15, dated June 7,2011, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable, AXA Distributors, LLC and AXA Advisors dated July 15,2002 incorporated herein by reference and/or previously filed with Post-Effective Amendment No. 84 To the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on August 17, 2011. (a)(xvi)Amendment No. 16, dated April 30, 2012, to the Amended and Restated Participation Agreement among EQ Advisors Trust, AXA Equitable and AXA Distributors, LLC, dated July 15,2002 incorporated herein by reference to Post-Effective Amendment No. 96 to the EQ Advisor's Trust Registration Statement (File No. 333-17217) on Form N-1A filed on February 7, 2012. (a)(b)(i)Second Amended and Restated Participation Agreement among the Trust, AXA Equitable, FMG LLC and AXA Distributors, LLC, dated May 23, 2012, incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on July 22, 2013. (a)(b)(ii)Amendment No. 1 dated as of June 4, 2013 to the Second Amended and Restated Participation Agreement among the Trust, AXA Equitable, FMG LLC and AXA Distributors, LLC, dated May 23, 2012, incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on July 22, 2013. (a)(b)(iii)Amendment No. 2 dated as of October 21, 2013 to the Second Amended and Restated Participation Agreement among the Trust, AXA Equitable, FMG LLC and AXA Distributors, LLC, dated May 23, 2012, incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on July 22, 2013. (a)(b)(iv)Amendment No. 3, dated as of April 4, 2014 ("Amendment No. 3"), to the Second Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement"), by and among EQ Advisors Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on April 30, 2014. (a)(b)(v)Amendment No. 4, dated as of June 1, 2014 ("Amendment No. 4"), to the Second Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement"), by and among EQ Advisors Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on April 30, 2014. (a)(b)(vi)Amendment No. 5, dated as of July 16, 2014 ("Amendment No. 5"), to the Second Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement"), by and among EQ Advisors Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on February 5, 2015. (a)(b)(vii)Amendment No. 6, dated as of April 30, 2015 ("Amendment No. 6"), to the Second Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement"), by and among EQ Advisors Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to EQ Advisors Trust Registration Statement on Form N-1A (File No. 333-17217) filed on April 16, 2015. (b) Participation Agreement among AXA Premier VIP Trust, AXA Equitable, AXA Advisors, AXA Distributors, LLC and EDI dated as of December 3,2001 incorporated herein by reference to and/or previously filed with Pre-Effective Amendment No. 1 to AXA Premier VIP Trust Registration Statement (File No. 333-70754) on Form N-1A filed on December 10, 2001. (b)(i) Amendment No. 1, dated as of August 1,2003 to the Participation Agreement among AXA Premier VIP Trust, AXA Equitable, AXA Advisors, AXA Distributors, LLC and EDI dated as of December 3, 2001 incorporated herein by reference to Post-Effective Amendment No. 6 to AXA Premier VIP Trust Registration Statement (File No. 333-70754) on Form N-1A filed on February 25, 2004. (b)(ii)Amendment No. 2, dated as of May 1,2006 to the Participation Agreement among AXA Premier VIP Trust, AXA Equitable, AXA Advisors, AXA Distributors, LLC and EDI dated as of December 3, 2001 incorporated herein by reference to Post-Effective Amendment No. 16 to AXA Premier VIP Trust Registration Statement (File: No. 333-70754) on Form N-1A filed on June 1, 2006. (b)(iii)Amendment No. 3, dated as of May 25, 2007 to the Participation Agreement among AXA Premier VIP Trust, AXA Equitable, AXA Advisors, AXA Distributors, LLC and EDI dated as of December 3,2001 incorporated herein by reference to Post-Effective Amendment No. 20 to AXA Premier VIP Trust Registration Statement (File No. 333-70754) on Form N-1A filed on February 5, 2008. (b)(iv)Amended and Restated Participation Agreement among the Registrant, AXA Equitable, FMG LLC and AXA Distributors, LLC, dated as of May 23, 2012, incorporated herein by reference to AXA Premier VIP Trust Registration Statement on Form N-1/A (File No. 333-70754) filed on July 22, 2013. (b)(v) Amendment No. 1 dated as of October 21, 2013, to the Amended and Restated Participation Agreement among the Registrant, AXA Equitable, FMG LLC and AXA Distributors, LLC, dated as of May 23, 2012, incorporated herein by reference to AXA Premier VIP Trust Registration Statement on Form N-1/A (File No. 333-70754) filed on October 2, 2013. (b)(vi)Amendment No. 2, dated as of April 18, 2014 ("Amendment No. 2") to the Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement") by and among AXA Premier VIP Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to AXA Premier VIP Trust Registration Statement on Form N-1/A (File No. 333-70754) filed on January 12, 2015. (b)(vii)Amendment No. 3, dated as of July 8, 2014 ("Amendment No. 3") to the Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement") by and among AXA Premier VIP Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to AXA Premier VIP Trust Registration Statement on Form N-1/A (File No. 333-70754) filed on January 12, 2015. (b)(viii)Amendment No. 4, dated as of December 10, 2014 ("Amendment No. 4"), to the Amended and Restated Participation Agreement, dated as of May 23, 2012, as amended ("Agreement"), by and among AXA Premier VIP Trust ("Trust"), AXA Equitable Life Insurance Company, AXA Equitable Funds Management Group, LLC and AXA Distributors, LLC (collectively, the "Parties"), incorporated herein by reference to AXA Premier VIP Trust Registration Statement on Form N-1/A (File No. 333-70754) filed on January 12, 2015. 5. (a) Sales Agreement, dated as of January 1, 1996, by and among Equico Securities, Inc., Equitable, and Separate Account A, Separate Account No. 301 and Separate Account No. 51, incorporated by reference to Exhibit No. 4(d) to Registration Statement No. 33-76028 filed on April 29, 1996. (b) Distribution Agreement for services by The Equitable Life Assurance Society of the United States to AXA Network, LLC and its subsidiaries dated January 1, 2000, incorporated by reference to Exhibit No. 3(d) to Registration Statement File No. 33-58950, filed on April 19, 2001. (c) Transition Agreement for services by AXA Network, LLC and its subsidiaries to The Equitable Life Assurance Society of the United States dated January 1, 2000, incorporated by reference to Exhibit No. 3(e) to Registration File No. 33-58950, filed on April 19, 2001. (d) General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, previously filed with this Registration Statement (File No. 2-30070) on April 19, 2004. (d)(i) First Amendment dated as of January 1, 2003 to General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-05593) on April 24, 2012. (d)(ii) Second Amendment dated as of January 1, 2004 to General Agent Sales Agreement dated January 1, 2000 between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-05593) on April 24, 2012. (d)(iii)Third Amendment dated as of July 19, 2004 to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-127445), filed on August 11, 2005. (d)(iv) Fourth Amendment dated as of November 1, 2004 to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-127445), filed on August 11, 2005. (d)(v) Fifth Amendment dated as of November 1, 2006, to General Agent Sales Agreement dated as of January 1, 2000 by and between The Equitable Life Assurance Society of the United States and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-05593) filed on April 24, 2012. (d)(vi) Sixth Amendment dated as of February 15, 2008, to General Agent Sales Agreement dated as of January 1, 2000 by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-05593) filed on April 24, 2012. (d)(vii) Seventh Amendment dated as of February 15, 2008, to General Agent Sales Agreement dated as of January 1, 2000 by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries previously filed with this Registration Statement on Form N-4 (File No. 333-05593) filed on April 24, 2012. (d)(viii)Eighth Amendment dated as of November 1, 2008, to General Agent Sales Agreement dated as of January 1, 2000 by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries previously filed with this Registration Statement on Form N-4 (File No. 2-30070) filed on April 20, 2009. (d)(ix) Ninth Amendment dated as of November 1, 2011 to General Agent Sales Agreement dated as of January 1, 2000 by and between AXA Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries incorporated herein by reference to the Registration Statement filed on Form N-4 (File No. 333-05593) filed on April 24, 2012. (d)(x) Tenth Amendment dated as of November 1, 2013, to General Agent Sales Agreement dated as of January 1, 2000, by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-178750) filed on October 16, 2014. (d)(xi) Eleventh Amendment dated as of November 1, 2013, to General Agent Sales Agreement dated as of January 1, 2000, by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-178750) filed on October 16, 2014. (d)(xii) Twelfth Amendment dated as of November 1, 2013, to General Agent Sales Agreement dated as of January 1, 2000, by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-178750) filed on October 16, 2014. (d)(xiii)Thirteenth Amendment dated as of October 1, 2014 to General Agent Sales Agreement dated as of January 1, 2000, by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries, incorporated herein by reference to the Registration Statement on Form N-4 (File No. 333-202147), filed on September 9, 2015. (d)(xiv) Fourteenth Amendment dated as of August 1, 2015 to General Agent Sales Agreement dated as of January 1, 2000, by and between AXA Equitable Life Insurance Company (formerly known as The Equitable Life Assurance Society of the United States) and AXA Network, LLC and its subsidiaries, incorporated herein by reference to this Registration Statement on Form N-4 (File No. 2-30070), filed on April 19, 2016. C-2 The following Exhibits relate to the Retirement Investment Account: 6. (a)(1) Group Annuity Contract AC 5000 - 83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. C-3 (a)(2) Riders 1, 2, 3, 4, 5, 6 and 7 to Group Annuity Contract AC 5000 - 83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, as executed, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 28, 1988. (a)(3) Form of Rider 8 to Group Annuity Contract AC 5000 - 83T (No. 15,740) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed February 25, 1992. (a)(4) Form of Rider 9 to Group Annuity Contract AC 5000 - 83T between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Exhibit No. 6(a)4 to Registration Statement No. 33-76028 filed on March 3, 1994. (b)(1) Group Annuity Contract AC 5000 - 83E (No. 15,739) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Retirement Trust, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. (b)(2) Riders l, 2, 3, 4, 5, 6 and 7 to Group Annuity Contract AC 5000 - 83E (No. 15,739) between Equitable and United States Trust Company of New York as Trustee under Retirement Investment Account Retirement Trust, as executed, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. (b)(3) Form of Rider 8 to Group Annuity Contract AC 5000 - 83E (No. 15,739) between Equitable and United States Trust Company of New York, as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed February 25, 1992. (b)(4) Form of Rider 9 to Group Annuity Contract AC 5000 - 83E between Equitable and United States Trust Company of New York, as Trustee under Retirement Investment Account Master Retirement Trust, incorporated by reference to Exhibit No. 6(b)4 to Registration Statement No. 33-76028 filed on March 3, 1994. (c)(1) Retirement Investment Account Master Retirement Trust effective as of January 1, 1979, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. (c)(2) Amendment to the Retirement Investment Account Master Retirement Trust effective July 1, 1984, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. C-4 (c)(3) Revised Retirement Investment Account Master Retirement Trust effective as of March 1, 1990, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 27, 1990. (c)(4) Form of Restated Retirement Investment Account Master Retirement Trust as submitted to the Internal Revenue Service, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed February 25, 1992. The following Exhibits relate to the Members Retirement Program: (d) Exhibit 6(e) (Copy of Group Annuity Contract AC 6059, effective August 30, 1984, among the United States Trust Company of New York and The Equitable Life Assurance Society of the United States), incorporated by reference to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1988. (e) Exhibit 6(f) (Form of Rider No. 1 to Group Annuity Contract AC 6059 between the United States Trust Company of New York and The Equitable Life Assurance Society of the United States), incorporated by reference to Registration No. 33-34554 on Form N-3 of Registrant, filed April 26, 1990. (f) Exhibit 6(g) (Form of Rider No. 2 to Group Annuity Contract AC 6059 between the United States Trust Company of New York and The Equitable Life Assurance Society of the United States), incorporated by reference to Registration No. 33-34554 on Form N-3 of Registrant, filed April 26, 1990. (g) Form of Rider No. 3 to Group Annuity Contract AC 6059 between the United States Trust Company of New York and The Equitable Life Assurance Society of the United States, incorporated by reference to Registration No. 33-46995 on Form N-3 of Registrant, filed April 8, 1992. (h) Form of Rider No. 4 to Group Annuity Contract AC 6059 between the United States Trust Company of New York and The Equitable Life Assurance Society of the United States, incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-46995 on Form N-3 of Registrant, filed March 2, 1993. (i) Form of Rider No. 5 to Group Annuity Contract AC 6059 between The Chase Manhattan Bank, N.A. and The Equitable Life Assurance Society of the United States, incorporated by reference to Post-Effective Amendment No. 2 to Registration Statement No. 33-91588 on Form N-3 of Registrant, filed April 29, 1997. (j) Form of Rider No. 6 to Group Annuity Contract AC 6059 between The Chase Manhattan Bank, N.A. and The Equitable Life Assurance Society of the United States, incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement No. 333-124410 on Form N-3 of Registrant, filed April 27, 2006. (k) Form of Rider No. 7 to Group Annuity Contract AC 6059 between The Chase Manhattan Bank, N.A. and The Equitable Life Assurance Society of the United States, incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement No. 333-124410 on Form N-3 of Registrant, filed April 27, 2006. (l) Form of Rider No. 8 to Group Annuity Contract AC 6059 between The Chase Manhattan Bank, N.A. and The Equitable Life Assurance Society of the United States, incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement No. 333-124410 on Form N-3 of Registrant, filed April 27, 2006. (m) Membership Retirement Program GIO Rider (Form No. APC 10-36-15 AC 6059 Rider 12), incorporated herein by reference to the Registration Statement (File No. 333-142459) filed on April 21, 2016. The following exhibits relate to the Retirement Investment Account: C-5 7. (a) Retirement Investment Account Enrollment Forms - Including Participation and Enrollment Agreements, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. (b)(1) Supplementary Agreement to Master Retirement Trust Participation Agreement, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 14, 1986. (b)(2) Supplementary Agreement B to Master Retirement Trust Participation Agreement (RIA Loans), incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 28, 1988. (b)(3) Form of Supplementary Agreement A to Master Retirement Trust Participation Agreement (RIA Partial Funding), as amended, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 30, 1991. (b)(4) Form of Supplementary Agreement to Master Retirement Trust Participation Agreement (The Bond Account), incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed February 25, 1992. (c) Basic Installation Information Form, dated May, 1989, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 24, 1992. (d) RIA Installation Agreement, dated May, 1989, incorporated by reference to Registration No. 2-91983 on Form N-3 of Registrant filed April 24, 1992. The following Exhibits relate to the Members Retirement Program: (e) Exhibit 7(k) (Form of Participation Agreement for the standardized profit-sharing Plan under the Association Members Program), incorporated by reference to Post-Effective Amendment No. 1 on Form N-3 to Registration Statement on Form S-1 of Registrant, filed April 16, 1986. (f) Exhibit 7(l) (Form of Participation Agreement for the non-standardized Profit-Sharing Plan under the Association Members Program), incorporated by reference to Post-Effective Amendment No. 1 on Form N-3 to Registration Statement on Form S-1 of Registrant, filed April 16, 1986. (g) Exhibit 7(m) (Form of Participation Agreement for the standardized Defined Contribution Pension Plan under the Association Members Program), incorporated by reference to Post-Effective Amendment No. 1 on Form N-3 to Registration Statement on Form S-1 of Registrant, filed April 16, 1986. (h) Exhibit 7(n) (Form of Participation Agreement for the non-standardized Defined Contribution Pension Plan under the Association Members Program), incorporated by reference to Post-Effective Amendment No. 1 on Form N-3 to Registration Statement on Form S-1 of Registrant, filed April 16, 1986. (i) Exhibit 7(r) (Copy of Attachment to Profit Sharing Participation Agreement under the Association Members Retirement Plan of the Equitable Life Assurance Society of the United States), incorporated by reference to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1988. (j) Exhibit 7(0)(2) (Form of Participant Enrollment Form under the Association Members Program), incorporated by reference to Post-Effective Amendment No. 2 in Form N-3 to Registration Statement on Form S-1 of Registrant, filed April 21, 1987. C-6 (k) Exhibit 7(t) (Form of Standardized Participation Agreement under the Association Members Defined Benefit Pension Plan), incorporated by reference to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1988. (l) Exhibit 7(ee) (Form of Standardized Participation Agreement for the Defined Contribution Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (m) Exhibit 7(ff) (Form of Non-Standardized Participation Agreement for the Defined Contribution Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (n) Exhibit 7(gg) (Form of Standardized Participation Agreement for the Profit-Sharing Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (o) Exhibit 7(hh) (Form of Non-Standardized Participation Agreement for the Profit-Sharing Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (p) Exhibit 7 (ii) (Form of Simplified Participation Agreement for the Defined Contribution Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (q) Exhibit 7(jj) (Form of Simplified Participation Agreement for the Profit-Sharing Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (r) Exhibit 7(kk) (Form of Standardized (and non-integrated) Participation Agreement for the Defined Benefit Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (s) Exhibit 7(11) (Form of Standardized (and integrated) Participation Agreement for the Defined Benefit Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (t) Exhibit 7 (mm) (Form of Non-Standardized (and nonintegrated) Participation Agreement for the Defined Benefit Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to PostEffective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. C-7 (u) Exhibit 7(nn) (Form of Non-Standardized (and integrated) Participation Agreement for the Defined Benefit Pension Plan under the Association Members Program, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (v) Form of First Amendment to the Members Retirement Plan of The Equitable Life Assurance Society of the United States Participation Agreement, as filed with the Internal Revenue Service on December 23, 1991, incorporated by reference to Registration No. 33-46995 on Form N-3 of Registrant, filed April 8, 1992. (w) Membership Retirement Program Enrollment Form previously filed with this Registration Statement (File No. 333-142459) on April 24, 2009. 8. (a) Restated Charter of AXA Equitable, as amended August 31, 2010, incorporated herein by reference to Registration Statement on Form N-4 (File No. 333-05593) on April 24, 2012. (b) By-Laws of AXA Equitable, as amended September 7, 2004, incorporated herein by reference to Exhibit No. 6.(c) to Registration Statement on Form N-4, (File No. 333-05593), filed on April 20, 2006. 9. Not Applicable. 10. Not Applicable. C-8 11. (a) Exhibit 11(e)(2) (Form of Association Members Retirement Plan, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (b) Exhibit 11(j)(2) (Form of Association Members Retirement Trust, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 33-21417 on Form N-3 of Registrant, filed April 26, 1989. (c) Exhibit 11(k) (Copy of the Association Members Pooled Trust for Retirement Plans, as submitted to the Internal Revenue Service on March 3, 1987), incorporated by reference to Post-Effective Amendment No. 2 to Registration on Form S-1 of Registrant, filed April 21, 1987. (d) Exhibit 11(o) (Form of Association Members Defined Benefit Pension Plan, as filed with the Internal Revenue Service on April 18, 1989), incorporated by reference to Post-Effective Amendment No. 2 to Registration No. 3321417 on Form N-3 of Registrant, filed April 26, 1989. (e) Form of First Amendment to the Pooled Trust for Association Members Retirement Plans of The Equitable Life Assurance Society of the United States, as filed with the Internal Revenue Service on December 23, 1991, incorporated by reference to Registration No. 33-46995 on Form N-3 of Registrant, filed April 8, 1992. (f) Form of First Amendment to the Association Members Retirement Plan of The Equitable Life Assurance Society of the United States, as filed with the Internal Revenue Service on December 23, 1991, incorporated by reference to Registration No. 33-46995 on Form N-3 of Registrant, filed April 8, 1992. (g) Form of Basic Plan Document (No. 1) for Volume Submitter plan as filed with the Internal Revenue Service in November 2003, incorporated by reference to Exhibit No. 7(m) to the Registration Statement on Form N-3 covering Separate Account 4, filed on April 27, 2004. (h) Membership Retirement Program Form of IRS Pre-Approved Defined Contribution Prototype Plan and Trust Basic Plan Document [DC-BPD #03] as filed with the Internal Revenue Service in April 2012, is incorporated herein by reference to the Registration Statement (File No. 333-142459) filed on April 21, 2016. C-9 12. Opinion of Shane Daly, Esq., Vice President and Associate General Counsel of AXA Equitable, as to the legality of the securities being registered, filed herewith. 13. (a) Consent of PricewaterhouseCoopers LLP, filed herewith. (b) Powers of Attorney, filed herewith. C-10 Item 30. Directors and Officers of AXA Equitable. Set forth below is information regarding the directors and principal officers of AXA Equitable. AXA Equitable's address is 1290 Avenue of the Americas, New York, New York 10104. The business address of the persons whose names are preceded by an asterisk is that of AXA Equitable. NAME AND PRINCIPAL POSITIONS AND OFFICES WITH BUSINESS ADDRESS AXA EQUITABLE ------------------ -------------------------- DIRECTORS Henri de Castries Director AXA 25, Avenue Matignon 75008 Paris, France Denis Duverne Director AXA 25, Avenue Matignon 75008 Paris, France Barbara Fallon-Walsh Director 1670 Stephens Drive Wayne, PA 19087 Daniel G. Kaye Director 767 Quail Run Inverness, IL 60067 Peter S. Kraus Director AllianceBernstein Corporation 1345 Avenue of the Americas New York, NY 10105 Kristi A. Matus Director Athenahealth, Inc. 311 Arsenal Street Watertown, MA 02472 Ramon de Oliveira Director Investment Audit Practice, LLC 70 South Fifth Street Park Ridge, NJ 07656 Bertram L. Scott Director Novant Health, Inc. 108 Providence Road Charlotte, NC 28207 Lorie A. Slutsky Director The New York Community Trust 909 Third Avenue New York, NY 10022 Richard C. Vaughan Director 764 Lynnmore Lane Naples, FL 34108-7522 C-11 OFFICER-DIRECTOR *Mark Pearson Chairman of the Board, Chief Executive Officer, Director and President OTHER OFFICERS *Dave S. Hattem Senior Executive Director and General Counsel *Heinz-Juergen Schwering Managing Director and Chief Risk Officer *Anders B. Malmstrom Senior Executive Director and Chief Financial Officer *Salvatore Piazzolla Senior Executive Director and Chief Human Resources Officer *Priscilla Sims Brown Senior Executive Director and Chief Marketing Officer *Joshua E. Braverman Senior Executive Director, Chief Investment Officer and Treasurer *Anthony F. Recine Managing Director, Chief Compliance Officer and Deputy General Counsel *Sharon A. Ritchey Senior Executive Director and Chief Operating Officer *Michael B. Healy Executive Director and Chief Information Officer *Andrea M. Nitzan Executive Director, Chief Accounting Officer and Controller *Nicholas B. Lane Senior Executive Director and Head of U.S. Life and Retirement *Kevin Molloy Senior Executive Director *Todd Solash Senior Executive Director *Keith Floman Managing Director and Chief Actuary *David Kam Managing Director and Actuary *Michel Perrin Managing Director and Actuary *Karen Field Hazin Lead Director, Secretary and Associate General Counsel *Naomi J. Weinstein Lead Director C-12 Item 31. Persons Controlled by or Under Common Control with the Insurance Company or Registrant. Separate Account Nos. 3, 4, 10 and 66 of AXA Equitable Life Insurance Company (the "Separate Accounts") are separate accounts of AXA Equitable. AXA Equitable, a New York stock life insurance company is a wholly owned subsidiary of AXA Financial, Inc. (the "Holding Company"). AXA owns 100% of the Holding Company's outstanding common stock plus convertible preferred stock. AXA is able to exercise significant influence over the operations and capital structure of the Holding Company and its subsidiaries, including AXA Equitable. AXA, a French company, is the holding company for an international group of insurance and related financial services companies. (a) The 2015 AXA Group Organizational Charts are incorporated herein by reference to Exhibit 26(a) to Registration Statement (File No. 333-207015) on Form N-6, filed December 23, 2015. (b) The AXA Financial, Inc. - Subsidiary Organization Chart: Q4-2015 is incorporated herein by reference to Exhibit 26(b) to Registration Statement (File No. 2-30070) on Form N-4 filed April 19, 2016. C-13 Item 32. Number of Contractowners As of March 31, 2016 there were 327 participants of Retirement Investment Account Contracts offered by the registrant, all of which are qualified contracts. As of the same date, there were 4,045 participants in the Members Retirement Program offered by the registrant, all of which are qualified contracts. Item 33. Indemnification (a) Indemnification of Directors and Officers The By-Laws of AXA Equitable Life Insurance Company ("AXA Equitable") provide, in Article VII, as follows: 7.4 Indemnification of Directors, Officers and Employees. (a) To the extent permitted by the law of the State of New York and subject to all applicable requirements thereof: (i) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate is or was a director, officer or employee of the Company shall be indemnified by the Company; (ii) any person made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact that he or she, or his or her testator or intestate serves or served any other organization in any capacity at the request of the Company may be indemnified by the Company; and (iii)the related expenses of any such person in any of said categories may be advanced by the Company. (b) To the extent permitted by the law of the State of New York, the Company may provide for further indemnification or advancement of expenses by resolution of shareholders of the Company or the Board of Directors, by amendment of these By-Laws, or by agreement. (Business Corporation Law ss. 721-726: Insurance Law ss. 1216.) The directors and officers of AXA Equitable are insured under policies issued by X.L. Insurance Company, Arch Insurance Company, Endurance Specialty Insurance Company, U.S. Specialty Insurance, ACE, Chubb Insurance Company, AXIS Insurance Company and Zurich Insurance Company. The annual limit on such policies is $105 million, and the policies insure that officers and directors against certain liabilities arising out of their conduct in such capacities. (b) Indemnification of Principal Underwriters For the Retirement Investment Account: To the extent permitted by law of the State of New York and subject to all applicable requirements thereof, AXA Advisors, LLC has undertaken to indemnify each of its directors and officers who is made or threatened to be made a party to any action or proceeding, whether civil or criminal, by reason of the fact the director or officer, or his or her testator or intestate, is or was a director or officer of AXA Advisors, LLC. For the Members Retirement Program: Not applicable. Presently, there is no Principal Underwriter of the contracts. AXA Equitable provides marketing and sales services for distribution of the contracts. No commissions are paid; however, incentive compensation is paid to AXA Equitable employees who provide these services based upon first year plan distributions and number of plans sold. (c) Undertaking Insofar as indemnification for liability arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers C-14 and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. C-15 Item 34. Business and Other Connections of Investment Adviser AXA Equitable Life Insurance Company ("AXA Equitable") acts as the investment manager for Separate Account Nos. 3, 4 and 10. With respect to Alliance Capital Management L.P. ("Alliance"), a publicly-traded limited partnership, is indirectly majority-owned by AXA Equitable and provides personnel and facilities for portfolio selection and transaction services. Alliance recommends the securities investments to be purchased and sold for Separate Account Nos. 3, 4 and 10, and arranges for the execution of portfolio transactions. Alliance coordinates related accounting and bookkeeping functions with AXA Equitable. Both AXA Equitable and Alliance are registered investment advisers under the Investment Advisers Act of 1940. Information regarding the directors and principal officers of AXA Equitable is provided in Item 30 of this Part C and is incorporated herein by reference. C-16 Set forth below is certain information regarding the directors and principal officers of AllianceBernstein Corporation ("AllianceBernstein"). The business address of the AllianceBernstein persons whose names are preceded by an asterisk is 1345 Avenue of the Americas, New York, New York 10105. (1) (2) (3) POSITIONS AND PRINCIPAL OCCUPATION NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS) BUSINESS ADDRESS ALLIANCEBERNSTEIN WITHIN PAST 2 YEARS ------------------ ------------------- -------------------------- DIRECTORS * Peter S. Kraus Chairman of the Chairman of the Board of Board the General Partner, Chief of Directors and Executive Officer, Chief Executive AllianceBernstein, and Officer Holding (December 2008 to present) and member of the Management Committee of AXA (April 2010) Christopher M. Condron Director Independent Director Denis Duverne Director Deputy Chief Executive AXA Officer, AXA (April 25, Avenue Matignon 2010-present) 75008, Paris, France * Steven G. Elliott Director Independent Director *Deborah S. Hechinger Director Independent Consultant on Non-profit Governance Weston M. Hicks Director President and Chief Alleghany Corporation Executive Officer 7 Times Square Tower -Alleghany Corporation New York, NY 10036 * Heidi S. Messer Director Co-Founder and Chair of Collective[i] Cross Commerce Media, host 130 Madison Avenue to Collective[i] New York, NY 10016 (2007-present) C-17 (1) (2) (3) POSITIONS AND PRINCIPAL OCCUPATION NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS) BUSINESS ADDRESS ALLIANCEBERNSTEIN WITHIN PAST 2 YEARS ------------------ ------------------- -------------------------- Mark Pearson Director Director, President and AXA Financial, Inc. Chief Executive Officer of 1290 Avenue of the Americas AXA Financial, and New York, NY 10104 Chairman and Chief Executive Officer of AXA Equitable. Scott A. Schoen Director CEO of Baylon Capital 535 Boylston Street Management (2013 - 9th Floor present) and Senior Boston, MA 02116 Advisor to Thomas H. Lee Partners, L.P (2012 - present) Lorie A. Slutsky Director President and Chief The New York Community Trust Executive Officer, The New 2 Park Avenue York Community Trust 24th Floor (since January 1990) New York, NY 10016 Christian Thimann Director Member of Executive AXA Committee of AXA (January 25, Avenue Matignon 2014 - present) 75008 Paris, France * Joshua A. Weinreich Director Independent Directorship (1) (2) (3) POSITIONS AND PRINCIPAL OCCUPATION NAME AND PRINCIPAL OFFICES WITH (AND OTHER POSITIONS) BUSINESS ADDRESS ALLIANCEBERNSTEIN WITHIN PAST 2 YEARS ------------------ ------------------- -------------------------- OFFICERS * Peter S. Kraus Chairman and Chief See Column 2. Executive Officer * Laurence E. Cranch General Counsel See Column 2. * James A. Gingrich Chief Operating See Column 2. Officer Robert P. van Brugge Chairman and CEO of See Column 2. SBC LLC John C. Weisenseel Chief Financial See Column 2. Officer C-18 Item 35. Principal Underwriters For Retirement Investment Account: (a) AXA Advisors, LLC, an affiliate of AXA Equitable, MONY Life Insurance Company and MONY Life Insurance Company of America, is the principal underwriter for AXA Equitable's Separate Account A, Separate Account No. 301, Separate Account No. 45, Separate Account 49, Separate Account I, Separate Account FP and AXA Premier VIP Trust and EQ Avisors Trust; and of MONY Variable Account A, MONY Variable Account L, MONY America Variable Account A, MONY America Variable Account L, MONY Variable Account S, and Keynote Series Account. AXA Advisors, LLC's principal business address is 1290 Avenue of the Americas, New York, NY 10104. For Members Retirement Program: Not applicable. Presently, there is no Principal Underwriter of the contracts, see Item 33(b) of this Part C which is incorporated by reference. (b) See Item 30 of this Part C, which is incorporated herein by reference. (c) Not applicable. Item 36. Location of Accounts and Records AXA Equitable Life Insurance Company 135 West 50th Street New York, New York 10020 1290 Avenue of the Americas New York, New York 10104 500 Plaza Drive Secaucus, New Jersey 07094 Item 37. Management Services Not applicable. C-19 Item 38. Undertakings The Registrant hereby undertakes the following: (a) to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted; (b) to include (1) as part of its applications to purchase any contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; (c) to deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request; and (d) AXA Equitable represents that the fees and charges deducted under the Contract described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred, and the risks assumed by AXA Equitable under the Contract. C-20 SIGNATURES As required by the Securities Act of 1933, the Registrant has duly caused this Amendment to the Registration Statement to be signed on its behalf, in the City and State of New York, on this 21st day of April, 2016. AXA EQUITABLE LIFE INSURANCE COMPANY (Registrant) By: AXA Equitable Life Insurance Company By: /s/ Shane Daly ---------------------------------------- Shane Daly Vice President and Associate General Counsel SIGNATURES As required by the Securities Act of 1933, the Depositor has caused this Registration Statement to be signed on its behalf, in the City and State of New York, on this 21st day of April, 2016. AXA EQUITABLE LIFE INSURANCE COMPANY (Depositor) By: /s/ Shane Daly ---------------------------------- Shane Daly Vice President and Associate General Counsel As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated: PRINCIPAL EXECUTIVE OFFICER: *Mark Pearson Chairman of the Board, Chief Executive Officer, Director and President PRINCIPAL FINANCIAL OFFICER: *Anders B. Malmstrom Senior Executive Director and Chief Financial Officer PRINCIPAL ACCOUNTING OFFICER: *Andrea M. Nitzan Executive Director, Chief Accounting Officer and Controller *DIRECTORS: Barbara Fallon-Walsh Mark Pearson Daniel G. Kaye Bertram Scott Peter S. Kraus Lorie A. Slutsky Kristi A. Matus Richard C. Vaughan *By: /s/ Shane Daly -------------------------- Shane Daly Attorney-in-Fact April 21, 2016 EXHIBIT INDEX EXHIBIT NO. TAG VALUE ----------- --------- 12 Opinion and Consent of Counsel EX-99.12 13(a) Consent of PricewaterhouseCoopers LLP EX-99.13a 13(b) Powers of Attorney EX-99.13b