Over 97% of National Mutual's policyholders endorse the company's demutualization and AXA'S investment.

PARIS--(BUSINESS WIRE)--Aug. 8, 1995--AXA, the Paris-based international insurance and financial services group, today announced that National Mutual's policyholders overwhelmingly voted in favor of the proposal to demutualize and restructure the Group, thus approving AXA's strategic investment.

Participation was particularly high, with over 300,000 policyholders -- or 25% of the total -- casting their votes. Approximately 97% of these votes were positive.

The vote was taken at an Extraordinary General Meeting held in Melbourne today. The final results will be known in the coming days. The National Mutual group will be demutualized and restructured under a new holding company: National Mutual Holdings (NMH).

AXA will invest A$1.08 billion (US$840 million), the capital injection taking place in the beginning of September as agreed. AXA will initially have a 40% voting interest, which will increase automatically to 51% upon the listing of National Mutual Holdings on the Australian and New Zealand Stock Exchanges or at the latest in September 1997.

AXA's investment will allow National Mutual to meet the anticipated new Australian capital adequacy requirements and provide it with capital for future growth in Australia/New Zealand and Asia. Under the Strategic Partnership, National Mutual will become the third pillar of the AXA Group beside its European and North American activities, contributing about 15% of AXA's worldwide insurance premium income. Through its investment in National Mutual, AXA will be able to build upon National Mutual's already highly successful Asian expansion strategy and participate in the expected rapid growth in the Australian pension fund market over the next decade.

The cooperation will officially start with the first meeting of the Board of the newly established National Mutual Holdings in September 1995. Geoff Tomlinson, Managing Director of National Mutual, will become Managing Director of NMH. The NMH Board will have an Australian Chairman and a majority of Australian Directors. AXA will be represented on the NMH Board as well as on the boards of all the major holding companies and operating entities proportionally to its voting interest.

As part of the agreement, National Mutual will take over management responsibility for the AXA Group's Asian life insurance businesses in Japan, Singapore, Hong Kong and South Korea and future common life insurance developments in the Asian region.

National Mutual is the second largest life insurer in Australia and New Zealand (with a 15% market share) and the second largest insurer in Hong Kong (with a 30% market share) through it 69% stake in National Mutual Asia Limited. The group also operates insurance businesses in Indonesia, Taiwan and Macau and has two representative offices in the People's Republic of China. Total insurance premium income recorded by National Mutual in its fiscal year ended September 30, 1994 was approximately A$4.3 billion (US$3.3 billion) and the group's assets under management at that date were in excess of A$26 billion (US$20 billion).

AXA is one of Europe's largest publicly traded insurance groups, with strong activities in insurance and financial services in France, Europe, and North America -- through its strategic alliance with The Equitable Companies Inc. --, and a growing presence in the Asia-Pacific region -- through its strategic agreement with The National Mutual Life Association of Australasia Limited.

The AXA share, traded on the monthly settlement market of the Paris Stock Exchange and SEAQ International in London, may be accessed on the Reuter Equities 2000 under the symbol MCDP.PA, on Quotron under MIDIF.EU, and on Bloomberg under CS FP Equity.

CONTACT: Taylor Rafferty Associates

Arnaud Robin, 212/889-4350