RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions Disclosure

RELATED PARTY TRANSACTIONS

AXA Equitable reimburses AXA Financial for expenses relating to certain employee compensation and benefits. Such reimbursement is based on the cost to AXA Financial of the benefits provided which totaled $11 million and $11 million, respectively, for the firstquarters of 2016 and 2015.

AXA Equitable paid $148 million and $145 million, respectively, of commissions and fees to AXA Distribution and its subsidiaries for sales of insurance products for the firstquarters of 2016 and 2015. AXA Equitable charged AXA Distribution’s subsidiaries $82 million and $82 million, respectively, for their applicable share of operating expenses for the firstquarters of 2016 and 2015, pursuant to agreements for services as described in the following paragraph.

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 agreements 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 $29 million and $19 million for the firstquarters of 2016 and 2015, 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 $38 million and $33 million for the firstquarters of 2016 and 2015, respectively. Expense reimbursements by AXA and AXA affiliates to AXA Equitable under such agreements totaled approximately $4 million and $3 million for the firstquarters of 2016 and 2015, respectively. The net receivable (payable) related to these contracts was approximately $1 million and $1 million at March 31, 2016 and December 31, 2015, respectively.

At March 31, 2016 and December 31, 2015, AXA Equitable’s GMIB reinsurance contract asset with AXA Arizona had carrying values of $10,075 million and $8,741 million, respectively, and is reported in Guaranteed minimum income benefit reinsurance contract asset, at fair value in the consolidated balance sheets. Ceded premiums to AXA Arizona in the firstquarters of 2016 and 2015 related to the UL and no lapse guarantee riders totaled approximately $107 million and $109 million, respectively. Ceded claims paid in the firstquarters of 2016 and 2015 were $25 million and $16 million, respectively.

In the first quarter of 2016, AXA Equitable sold artwork to AXA Financial and recognized a $20 million gain on the sale. AXA Equitable used the proceeds received from this sale to make a $20 million donation to AXA Foundation, Inc. (the “Foundation”). The Foundation was organized for the purpose of distributing grants to various tax-exempt charitable organizations and administering various matching gift programs for AXA Equitable its subsidiaries and affiliates.

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 January 2016, the property was sold and a portion of the proceeds were used to repay the $382 million term loan outstanding and a $65 million prepayment penalty.