Axa Sa · EURONEXT:CS
Axa Sa — H1 2010 Earnings Presentation
29 slides from Axa Sa's earnings presentation, Aug 4, 2010
Slide 1: Half Year 2010 Earnings Press Conference
Half Year 2010 Earnings Press conference Paris - August 4, 2010
Slide 2: Cautionary note concerning forward-looking statements
Cautionary note concerning forward-looking statements Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements be
Slide 3: AXA at a glance
AXA at a glance 3 – AXA 1H10 Earnings – August 4, 2010
Slide 4: Table of contents
Table of contents 1H10 financial performance: key highlights Page 5 by Henri de Castries, Chairman and CEO 1H10 financial performance: detailed presentation Page 8 by Denis Duverne, Deputy CEO Concluding remarks Page 26 by Henri de Castries, Chairman and CEO 4 – AXA 1H10 Earnings – August 4, 2010
Slide 5: Key highlights
Key highlights “In this uncertain economic environment, we implemented active measures to improve future margins and enhance the capital and growth profile of the Group, while delivering sustainable earnings” 9 Total revenues up 1.4% at €49.9 billion Disciplined growth 9 Life & Savings: NBV margin u
Slide 6: Return on the first half of 2010
Return on the first half of 2010 In 25 years, AXA brand has become the first Eurozone brand of insurance speculations worldwide Week of Sales Recruitment: 20.000 positions in 8 countries of the Group A new Management Committee A new governance Serbia Emerging countries: entry into Romania and Serbia
Slide 7: Table of contents
Table of contents 1H10 financial performance: key highlights Page 5 by Henri de Castries, Chairman and CEO 1H10 financial performance: detailed presentation Page 8 by Denis Duverne, Deputy CEO Concluding remarks Page 26 by Henri de Castries, Chairman and CEO 7 – AXA 1H10 Earnings – August 4, 2010
Slide 8: 1H10 financial performance: Disciplined growth
1H10 financial performance Disciplined growth Sustainable earnings Balance sheet 8 – AXA 1H10 Earnings – August 4, 2010
Slide 9: Resilient revenues in all businesses
Resilient revenues in all businesses Insurance revenues* Revenues by segment by region In Euro billion In Euro million 1H09 1H10 % Mediterranean & LA region France -5% È Life & Savings 30,065 30,881 +1.5% È +20% 7.7 10.5 Property & Casualty 14,919 15,394 +0.4% North NORCEE(2) America 5.5 Asset Manag
Slide 10: Focus on Life & Savings
Focus on Life & Savings Life & Savings APE Life & Savings NBV(1) In Euro million 1H09 1H10 % 1H09 1H10 % United States 576 505 -13% 6 62 +894% France 776 681 -12% 67 66 -0% United Kingdom 493 537 +6% 49 56 +10% Focus on margins in the US, France and Japan NORCEE 562 658 +9% 118 133 +3% Asia Pacifi
Slide 11: Focus on Property & Casualty
Focus on Property & Casualty Personal lines Commercial lines Price increase Revenues growth Price increase Revenues growth France +3.4% +5.1% +3.9% -0.1% Germany +0.5% -1.8% -0.6% -0.7% UK & Ireland +8.6% +13.7% +2.7% -10.6% Switzerland -0.6% +0.9% -1.3% -3.7% Belgium +1.6% +1.8% +0.2% -4.3% Canada
Slide 12: Focus on Asset Management
Focus on Asset Management AllianceBernstein AXA IM improving momentum Increase in AUM Of which Euro -21 billion at In Euro billion AXA Rosenberg Increasing Average Assets Under Management 21 -17 21 In Euro billion +12% 524 499 325 329 364 FY09 Market Forex Outflows 1H10 appreciation 1H09 FY09 1H10 U
Slide 13: 1H10 financial performance: Sustainable earnings
1H10 financial performance Disciplined growth Sustainable earnings Balance sheet 13 – AXA 1H10 Earnings – August 4, 2010
Slide 14: Life & Savings Underlying Earnings
Life & Savings Underlying Earnings Key drivers of change in L&S L&S Underlying Earnings Underlying Earnings In Euro million Higher investment margin (up 21%) primarily as a result of higher average asset base +6% 1,232 1,325 Higher fees and revenues on assets & premiums (up 9%) mainly driven by
Slide 15: Property & Casualty Underlying Earnings
Property & Casualty Underlying Earnings P&C Underlying Earnings In Euro million Key drivers of change in P&C -9% Underlying Earnings 986 923 Improved current year combined ratio (-1.5 pts) Lower positive prior year reserve developments 1H09 1H10 Change is on a comparable basis Stable impact of
Slide 16: Asset Management Underlying Earnings
Asset Management Underlying Earnings Asset Management Underlying Earnings In Euro million Key drivers of change in Asset Management Underlying Earnings €+65 million -15% Tax one-off at AllianceBernstein 176 150 Higher revenues (up 10%) mainly due to higher average assets under management General
Slide 17: Underlying Earnings
Underlying Earnings Sustainable earnings base Underlying Earnings Underlying earnings by business In Euro million In Euro million 1H09 1H10 % -3% Life & Savings 1,232 1,325 +6% 2,116 2,082 Property & Casualty 986 923 -9% Asset Management 176 150 -15% International Insurance 122 144 +17% Banking 15 (
Slide 18: Adjusted Earnings
Adjusted Earnings Strong increase benefiting from higher realized gains and lower impairments Adjusted Earnings (base for dividend policy) Net realized capital gains/losses In Euro million In Euro million 1H09 1H10 +29% Underlying Earnings 2,116 2,082 2,284 Net realized capital (379) 202 gains/(loss
Slide 19: Net income
Net income Reduced by the sale of part of the UK Life operations Net income Key drivers of change in Net income In Euro million In Euro million 1H09 1H10 Adjusted Earnings 1,736 2,284 Change in fair value -279 219 +81% Of which impact from credit spreads & interest rates (1) 309 -44 2,422 Of which i
Slide 20: 1H10 financial performance: Balance sheet
1H10 financial performance Disciplined growth Sustainable earnings Balance sheet 20 – AXA 1H10 Earnings – August 4, 2010
Slide 21: Shareholders' equity up €2.4 billion
Shareholders’ equity up €2.4 billion Key drivers of change in Shareholders’ equity In Euro billion shareholders’ equity 48.6 1H10 vs. FY09 46.2 +• Net income for the period €+0.9 billion +• Variation gains of unrealized capital €+1.2 billion +• net Forex movements of hedging instruments €+2.1 billio
Slide 22: Financial structure
Financial structure Net financial debt Debt ratios In Euro billion FY08 FY09 1H10 17.7 • Gross financial debt impacted by 5,25% subordinated debt raised in Interest 16.1 April in anticipation of the refinancing Cover(3) 8.5x 7.9x 9.3x of upcoming calls (Euro 1.3bn) • Net financial debt impacted by b
Slide 23: General Account invested assets
General Account invested assets Invested assets (100%) In Euro billion FY09 % 1H10 % Changes in asset allocation Fixed income 328 81% 362 81% Net inflows: Mainly invested in o/w Govies and related 154 38% 177 40% Government & Corporate bonds o/w Corporate bonds 146 36% 157 35% Mark to market: Fi
Slide 24: Further improvement in Solvency I ratio
Further improvement in Solvency I ratio Solvency I ratio at 188% 186% +8pts 188% 171% +9pts 25% 33% 154% 17% Positive impact from interest 127% rates partially offset by credit, equities and FX FY06 FY07 FY08 FY09 Underlying Market 1H10 earnings effects UCG on fixed income assets 24 – AXA 1H10 Earni
Slide 25: Table of contents
Table of contents 1H10 financial performance: key highlights Page 5 by Henri de Castries, Chairman and CEO 1H10 financial performance: detailed presentation Page 8 by Denis Duverne, Deputy CEO Concluding remarks Page 26 by Henri de Castries, Chairman and CEO 25 – AXA 1H10 Earnings – August 4, 2010
Slide 26: Concluding remarks: growth profile and profitability
Concluding remarks: growth profile and profitability Priorities Further 1 Continue to develop 2 Redeploy capital more While enhancing selected businesses efficiently throughout maintaining a our capital & through internal growth the group across strong growth profile and bolt-on acquisitions busines
Slide 27: Q&A session
Q&A session Q&A session 27 – AXA 1H10 Earnings – August 4, 2010
Slide 28: Notes
Notes Page 9 (1) Change on a comparable basis corresponds to: For activity indicators, constant exchange rates, scope and methodology For earnings and profitability indicators, constant exchange rates (2) NORCEE = Northern, Central and Eastern Europe Page 10 (1) NBV = New Business Value is the value
Slide 29: Definitions
Definitions AXA's 1H10 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2010 and are subject to completion of a limited review by AXA’s independent auditors. Adjusted earnings, underlying earnings, Life & Savings EE