Our Brokers and AdvisorsBroker Compensation and Support*

Disclosure by Brokers

Insurance brokers have the responsibility to ensure that their clients are fully informed of all relevant information before the client makes a decision. For example, brokers have a duty to disclose the commissions they receive for a policy if requested by the client.

Standard Commissions

Commissions are paid to brokers by insurers as a percentage of the policy premium. Standard commissions paid by AXA are set forth in the following table:

Profit Sharing (Contingent Profit Commissions)

In addition to the payment of standard commissions, AXA has an annual contingent profit commission program which recognizes brokers for helping AXA to write profitable business. Profit sharing payments are not guaranteed; rather, they are based upon profitability, growth, size and retention of the broker's entire portfolio of business with AXA, and not individual policies.

Over the past few years, AXA paid profit commissions of approximately 3.2% of total premiums.

Underwriting and Data entry

A small number of AXA brokers also provide additional services such as underwriting and data entry for an additional commission of between 0.5% and 1.5% for the cost of providing these services on behalf of AXA.

Portfolio Transfers

On occasion, brokers review the insurers with whom they do business. Brokers therefore may choose to change insurers in order to provide better value to their clients. When a broker elects to transfer clients of another insurer to AXA, AXA may support the broker's administrative efforts in carrying out such transfers through training and technology and/or financial support.

Business Loans and Broker Ownership

AXA and its affiliates have provided, and will continue to provide, a small number of brokers with financial support to enable these brokers to provide for business expansion or succession continuity. This financial support can take the form of AXA or its affiliates taking an equity position in the broker or providing a business loan to the broker or providing financial guarantees.

AXA expects these arrangements will not impact the advice given to the clients and expects these arrangements to be properly disclosed to clients.

Other Services

Brokers and insurers need to work together to serve clients. On occasion AXA holds seminars or conferences to talk about how both of them can better serve clients. AXA also on occasion organizes social or entertainment events for its brokers.

Brokers are sometimes eligible to receive small gifts or prizes in recognition of their long term business relationships with AXA or in circumstances where AXA wishes to expand its customer base with current products or to introduce new products to the market place.

Finally, AXA on occasion offer brokers other kind of support programs in order to assist them in the operation of their businesses and to reach new clients. These kinds of programs can include joint marketing, IT and website assistance, training support and technology assistance.

If you have any comments or questions, please contact us or your broker.

* The information contained in this document relates to property and casualty insurance only.