Axa Sa · EURONEXT:CS
Axa Sa — Axa Sa Ord — H1 2021 Earnings Presentation
33 slides from Axa Sa's earnings presentation, Aug 2, 2021
Slide 1: Half Year 2021 Earnings presentation
Half Year 2021 Earnings presentation August 2, 2021
Slide 2: Important legal information and cautionary statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, tr
Slide 3: Table of contents
Table of contents 1. 1H21 Highlights A.04 Thomas Buberl, Group CEO 2. 1H21 Business Performance A.10 Frédéric de Courtois, Deputy Group CEO 3. 1H21 Financial Performance A.20 Alban de Mailly Nesle, Group CFO A3 Half Year 2021 Earnings | August 2, 2021 GIE_AXA_Confidential
Slide 4: 1H21 Highlights
1 1H21 Highlights Thomas Buberl, Group CEO
Slide 5: Results are strong, delivering on our strategy
Half Year 2021 | Results are strong, delivering on our strategy €54bn 212% €3.6bn €619m Revenues Solvency II ratio Group UE AXA XL UE +7% vs 1H20 +101% vs 1H20 +12 pts vs FY20 Confidence on €1.2bn UE +5% vs 1H19 +12% ex Covid Strong performance across all dimensions A5 Half Year 2021 Earnings | Augu
Slide 6: Simplification, focus and shift to technical risks is producing results
Simplification, focus and shift to technical risks is producing results France & Europe geared for sustained delivery +6% +7% across growth, margins & expenses Revenues UE ex Covid AXA XL turnaround from disciplined underwriting +7% +40% Revenues UE ex Covid Euro 1.2 billion underlying earnings in 2
Slide 7: AXA XL | Delivering, with confident outlook
AXA XL | Delivering, with confident outlook In Euro billion Underlying earnings +40% -0.1 Strong underwriting Continued performance pricing momentum1 CY +0.4 -0.1 0.6 +15% Insurance CoR 95.8% 0.5 +10% Reinsurance PYD Underwriting Investment Tax, FX result income and other Portfolio re-underwriting F
Slide 8: Disciplined execution | Translating into strong growth in UEPS and NI
Disciplined execution | Translating into strong growth in UEPS and NI Underlying earnings per share Net income In Euro In Euro million +97% +191% +7% UE growth and favorable ex. Covid financial markets 1.48 3,996 0.75 1,429 1H20 1H21 1H20 1H21 A8 Half Year 2021 Earnings | August 2, 2021 “Ex Covid” e
Slide 9: Climate | Our commitments in action
Climate | Our commitments in action Launch of the Publication of our Chair of the AXA for Progress Index 2021 Climate Report Net-Zero Insurance Alliance ✓ 7 shared Group commitments Our “warming potential” at 2.7°C, ✓ Formal launch at G20 (Jul 21) ✓ 3 targets impacting compensation below the market’
Slide 10: 1H21 Business performance
2 1H21 Business performance Frédéric de Courtois, Deputy Group CEO
Slide 11: P&C Revenues | Favorable pricing momentum in Commercial lines
P&C Revenues | Favorable pricing momentum in Commercial lines In Euro billion Gross revenues Commercial lines pricing1: +7% +11% +4% 28.1 28.1 +3% +3% AXA XL France Europe Commercial 18.4 +6% 18.7 Personal lines pricing1: stable +1% +1% Personal 9.6 +1% 9.3 -3% France Europe Asia & Int’l 1H20 1H21 A
Slide 12: P&C Profitability | Strong underwriting performance
P&C Profitability | Strong underwriting performance In Euro billion Underlying earnings Combined ratio +323% (or +13% ex Covid in 1H20) 101.7% 6.5% -0.2 2.2 95.1% 93.3% +0.4 -0.1 ex Covid 3.4% 4.1% Underwriting Investment Tax, FX result income and other +1.5 93.9% 91.4% 0.5 Non-repeat of 1H20 Covid-
Slide 13: P&C Combined ratio | Strong technical profitability across geographies
P&C Combined ratio | Strong technical profitability across geographies 1H20 (ex Covid) 1H21 -3.9pts -0.6pt 99.7% +0.2pt 91.4% 90.8% 95.8% 89.6% 89.7% AXA XL France Europe ▶ Higher pricing ▶ Frequency benefits in France and Europe (in CY) ▶ Portfolio re-underwriting ▶ French restaurant settlement off
Slide 14: L&S Revenues | Growing across markets, with high quality mix
L&S Revenues | Growing across markets, with high quality mix In Euro billion Gross revenues Revenues by geography +4% +12% vs 1H19 +20% +2% 16.9 +17% 7.6 15.6 5.2 3.4 France Europe Asia Protection +4% 7.7 L&S net flows: +1.4bn 3.9 Unit-Linked +35% +2.1 +1.6 +0.8 Capital light1 G/A +19% 3.8 Tradition
Slide 15: APE and NBV | Growing our highly profitable product mix
APE and NBV | Growing our highly profitable product mix In Euro billion APE +11% vs 1H19 +9% 3.0 2.8 NBV NBV NBV margin margin +15% +2.5 pts Protection +4% 1.9 56% and Health1 1.4 45.8% 46.8% 1.3 +35% 0.5 41% Unit-Linked 1H20 1H21 1H20 1H21 Capital light2 G/A +28% 0.4 28% Traditional G/A -8% 0.2 12%
Slide 16: L&S profitability | Higher technical margin, resilient investment margin
L&S profitability | Higher technical margin, resilient investment margin In Euro million Underlying earnings +10% -4 -30 236 -128 1,240 1,165 ▶ Higher technical margin from business growth and the non-repeat of unfavourable exceptionals in 1H20 ▶ Resilient investment margin, with lower yields offset
Slide 17: Health | Continued profitable growth
Health | Continued profitable growth Revenues in Euro billion Underlying earnings in Euro million Gross revenues Combined ratio Underlying earnings +3% +0.2pt +5% 7.9 7.9 94.0% 94.4% 388 386 Loss +0.2pt Expense stable 1H20 1H21 1H20 1H21 1H20 1H21 A17 Half Year 2021 Earnings | August 2, 2021 Back to
Slide 18: Asset Management | Higher AUM with favorable business mix
Asset Management | Higher AUM with favorable business mix In Euro billion Net inflows by platform Average AUM +8.9 +7% +5.5 +3.6 867 809 Alts Core JVs JVs +15% Alts +9% Net inflows by client +9.4 +8.9 Core +5% -0.3 Third party Main fund JVs 1H20 1H21 A18 Half Year 2021 Earnings | August 2, 2021 Back
Slide 19: Asset Management | Earnings growth from margin expansion
Asset Management | Earnings growth from margin expansion In Euro million Gross revenues Cost income ratio Underlying earnings +17% +0.5bp +32% mgt fee bps -3.6pts 704 71.0% 170 67.3% 606 130 1H20 1H21 1H20 1H21 1H20 1H21 A19 Half Year 2021 Earnings | August 2, 2021 Back to agenda GIE_AXA_Confidentia
Slide 20: 1H21 Financial performance
3 1H21 Financial performance Alban de Mailly Nesle, Group CFO
Slide 21: Underlying earnings | Strong 1H21 performance
Underlying earnings | Strong 1H21 performance In Euro million +101% +12% 3,643 ex. Covid 1H20 1H21 Change Property & Casualty 544 2,209 +323% +13% ex. Covid Life & Savings 1,165 1,240 +10% 1,885 Health 388 386 +5% Asset Management 130 170 +32% Holdings & other -341 -361 -7% Underlying earnings 1,885
Slide 22: Net income | Strong growth from UE and favorable market conditions
Net income | Strong growth from UE and favorable market conditions In Euro million +191% 3,996 Underlying earnings 3,643 Gains/losses on financial assets +547 o/w Net realized capital gains +257 o/w Change in fair value and Forex 1 +290 Exceptional and discontinued operations -59 1,429 Integration a
Slide 23: Shareholders' equity | High ROE at 16.6%
Shareholders’ equity | High ROE at 16.6% In Euro billion 71.6 68.4 FY20 Shareholders' equity 71.6 Change in net unrealized capital gains1 -4.7 Net income for the period +4.0 Dividend (paid in May 2021) -3.4 Change in pension benefits +0.5 Forex and other +0.5 FY20 1H21 1H21 Shareholders' equity 68.4
Slide 24: Solvency II ratio | Strong at 212%
Solvency II ratio | Strong at 212% 1H21: Solvency II ratio 1 roll-forward Key sensitivities FY20 Solvency II ratio 200% Ratio as of June 30, 2021 212% Operating return +12 pts Interest rate +50bps +10 pts Dividend accrual -6 pts Interest rate -50bps -14 pts Market impact excl. Forex +3 pts Corporate
Slide 25: Investments | Yields supported by Alternatives, resilient L&S margin
Investments | Yields supported by Alternatives, resilient L&S margin 1H21 Fixed Income P&C yield2 L&S investment margin reinvestment yield 2.3% 2.8% 69 bps 69 bps 2.6% 1.3% 0.9% Core Alternative1 1H21 1H20 1H21 1H20 1H21 Government bonds Average rating: AA 10-20 bps 55 – 65 bps Corporate bonds Avera
Slide 26: Debt gearing within guidance and strong credit ratings
Debt gearing within guidance and strong credit ratings Debt gearing Rating Outlook 26.8% 27.6% March, 2021 AA- Stable June, 2021 Aa3 Stable FY20 1H21 May, 2021 AA- Positive (revised from stable) A26 Half Year 2020 Earnings | August 6, 2020 Back to agenda GIE_AXA_Confidential
Slide 27: Conclusion
Conclusion Thomas Buberl, Group CEO
Slide 28: Results are strong, delivering on our strategy
Half Year 2021 | Results are strong, delivering on our strategy €54bn 212% €3.6bn €619m Revenues Solvency II ratio Group UE AXA XL UE +7% vs 1H20 +101% vs 1H20 +12 pts vs FY20 Confidence on €1.2bn UE +5% vs 1H19 +12% ex Covid Strong performance across all dimensions A28 Half Year 2021 Earnings | Aug
Slide 29: Q&A Half Year 2021 Earnings
Q&A Half Year 2021 Earnings August 2, 2021
Slide 30: AXA Investor Relations | Keep in touch
AXA Investor Relations | Keep in touch Meet our management Call us Investor Relations +33 1 40 75 48 42 September – Andrew Wallace-Barnett +33 1 40 75 46 85 Virtual European and US roadshows Virtual Head of Investor Relations October François Boissin +33 1 40 75 39 82 Vice President September 23 Ban
Slide 31: Thank you
Thank you Half Year 2021 Earnings August 2, 2021
Slide 32: Scope and definitions
Scope and definitions Scope ▪ France: includes insurance activities, banking activities and holdings in France. ▪ Europe: includes Switzerland (insurance activities), Germany (insurance activities, holding, and banking activities until its disposa l on December 31, 2020), Belgium (insurance activiti
Slide 33: Notes
Notes Page A7 1. Renewals only at AXA XL in 1H21, price effect calculated as a percentage of renewed premiums. Page A11 1. Price effect is calculated as a percentage of total gross written premiums in the prior year. Page A12 1. Refers to “P&C Covid-19 claims in 1H20”, including P&C net claims relat