Slide 1: Half Year 2023 Earnings presentation
Half Year 2023 Earnings presentation August 3, 2023 GIE_AXA_Confidential
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, t
Slide 3: Table of contents
Table of contents 1. 1H23 Highlights p.4 Thomas Buberl, Group CEO 2. 1H23 Business Performance p.8 Frédéric de Courtois, Group Deputy CEO 3. 1H23 Financial Performance p.12 Alban de Mailly Nesle, Group CFO 3 GIE_AXA_Confidential
Slide 4: 1H23 Highlights
1 1H23 Highlights Thomas Buberl, Group CEO GIE_AXA_Confidential
Slide 5: Half Year 2023 | Continued strong delivery
Half Year 2023 | Continued strong delivery €4.1bn +8% Group UE Group UEPS1 +5% vs. 1H22 IFRS4 vs. 1H22 IFRS4 Confident to exceed Euro 7.5 billion2 underlying earnings 16.6% 235% in 2023 ROE Solvency II ratio 1H23 +20pts vs. FY22 1. 1H23 UEPS increased by +23% vs 1H22 restated under IFRS17/9 2. Based
Slide 6: Simple business, well-positioned in the current environment
Simple business, well-positioned in the current environment ~ 50% Commercial ~ 50% Retail Global leader in Leading positions in Western Europe, Commercial lines insurance Japan, Hong Kong and select emerging markets P&C Commercial lines (~40%) P&C Retail lines (~20%) Rising prices and volumes, susta
Slide 7: Accelerating our Health strategy
| Accelerating our Health strategy A strong addition to our European Acquisition of Laya Healthcare and Health franchise ▶ Leading Health player in Ireland, with 28% AXA Complementing #1 P&C position in Ireland market share1 (#2) in a fast-growing market Ireland with strong cross-selling potential ▶
Slide 8: 1H23 Business Performance
2 1H23 Business Performance Frédéric de Courtois, Group Deputy CEO GIE_AXA_Confidential
Slide 9: Business delivering strong results in the current environment
Business delivering strong results in the current environment €4.1 billion1 Group Underlying Earnings in 1H23 (+5% vs 1H22 under IFRS4) Asia, EME-LATAM Asset France Europe AXA XL Management 1H23 environment & Africa ▪ Favorable pricing in P&C €1.0bn €1.5bn €0.9bn €0.8bn €0.2bn ▪ High interest rates
Slide 10: Fundamentals in place to drive earnings growth
Fundamentals in place to drive earnings growth In Euro billion Growing attractive Excellent and sustainable Continued growth in stock business mix P&C underwriting margins of L&H future profits Organic top line growth1 P&C undiscounted L&H CSM, net of CSM release current year loss ratio (ex Nat Cat)
Slide 11: A capital-efficient business
A capital-efficient business In Euro billion Solvency II Ratio 215% 235% ▶ Strong operating capital generation 62.3 58.5 ▶ Lower capital requirement ✓ Shift in our Life business toward capital light products 27.2 26.5 ✓ Actions to further reduce the Group’s duration gap ▶ Reduced interest rate sensi
Slide 12: 1H23 Financial Performance
3 1H23 Financial Performance Alban de Mailly Nesle, Group CFO GIE_AXA_Confidential
Slide 13: P&C | Focused on profitable growth, maintaining pricing discipline
P&C | Focused on profitable growth, maintaining pricing discipline In Euro billion GWP & Other Revenues +7% o/w o/w 30.4 Change1 28.7 pricing2 volume3 ▶ Pricing holding up well, above loss trend ▶ AXA XL renewal price at 4% or +7% excluding NA Professional, with strong reacceleration in Commercial 1
Slide 14: P&C | High level of technical profitability
P&C | High level of technical profitability IFRS17 Combined ratio 97.6% Higher technical margin from strong business fundamentals 96.2% 1.7% 1.0% ▶ Benefiting from strong skew towards Commercial lines 90.9% 5.0% 4.1% 3.0% ▶ Disciplined pricing PYD Nat Cat CY L/R ex Nat Cat Managing volatility (undis
Slide 15: P&C | Confident in maintaining attractive margins across lines
P&C | Confident in maintaining attractive margins across lines Commercial lines (62% of P&C GWP1) Personal lines (32% of P&C GWP1) current year loss ratio2 current year loss ratio2 71.5% 70.8% +0.9pt -0.7pt -0.6pt 68.6% 67.9% -2.1pts -1.6pts -1.7pts L/R ex Nat Cat: flat vs 2H22 FY22 Nat Cat L/R L/Re
Slide 16: P&C | Strong earnings growth from higher revenues and technical margin
P&C | Strong earnings growth from higher revenues and technical margin In Euro million Underlying Earnings +13% vs 1H22 +54% IFRS4 +27 -99 2,717 -264 +1,303 ▶ Excellent underwriting results, driven by growth in Financial results revenues and a 90.9% combined ratio 1,750 ▶ Insurance finance expenses
Slide 17: Life & Health | High quality net flows, Unit-linked impacted
Life & Health | High quality net flows, Unit-linked impacted by volatile market conditions In Euro billion Life GWP Health GWP & Other Revenues & Other Revenues Net flows -1% or +7% excl. -6% 16.6 16.3 non-renewed 8.7 Group contracts1 8.2 Protection +2.5 Protection +4% 8.0 Individual +6% 4.5 Health
Slide 18: Life & Health | Attractive NBV margin
Life & Health | Attractive NBV margin, broadly unaffected by market conditions In Euro billion PVEP -9% NBV NBV margin 25.9 (post-tax) 23.3 +0.1pt -7% 1.3 5.0% 5.1% 1.2 Protection & Health -11% 14.9 Unit-Linked +11% 3.3 1H22 1H23 1H22 1H23 Capital-light G/A +3% 3.8 New Business €1.2bn €1.5bn +2% €1.
Slide 19: Life & Health | Sustainable CSM growth fueled by new business
Life & Health | Sustainable CSM growth fueled by new business In Euro billion Contractual Service Margin rollforward -0.4 +0.8 -1.5 +1.4 -1.0 33.9 +1.2 33.3 ▶ Underlying return on inforce reflecting unwind and a spread over risk-free rate Recurring items ▶ CSM release ratio1 of 9% and 7% for Life an
Slide 20: Life & Health | Resilient Life earnings, Health impacted by higher claims
Life & Health | Resilient Life earnings, Health impacted by higher claims in the UK In Euro million Underlying Earnings -13% -4% vs 1H22 1,897 +41 IFRS4 -137 +43 1,643 800 -200 Technical & ▶ L&H underlying earnings driven by a 470 financial results predictable CSM release ▶ Technical result reflecti
Slide 21: Asset Management | Robust third-party net flows
Asset Management | Robust third-party net flows, revenues impacted by market conditions Assets under management and Gross revenues in Euro billion Underlying earnings in Euro million Assets under management Underlying earnings -1% -7% 845 +10 840 203 JVs -7 -8 97 188 AXA IM Alts 223 Third-party +8 (
Slide 22: Strong growth in UEPS, change in net income reflects IFRS17/9
Strong growth in UEPS, change in net income reflects IFRS17/9 transition and market effects In Euro billion Underlying earnings per share1 In Euro +8% 1.79 1.65 +5% from earnings growth +3% from capital management 1H22 1H23 IFRS4 IFRS17/9 Change at constant FX for underlying earnings and net income.
Slide 23: Solvency II at 235%, supported by strong capital generation
Solvency II at 235%, supported by strong capital generation and positive management actions In Euro billion Key sensitivities +4.5 +0.7 -0.2 0.0 62.3 -2.0 Ratio as of June 30, 2023 235% +0.8 58.5 P&C +2.7 Eligible Own L&S +2.2 Interest rate +50bps +5 pts Funds (EOF) Holdings and other -0.3 Interest
Slide 24: Conclusion
Conclusion Thomas Buberl, Group CEO GIE_AXA_Confidential
Slide 25: Strong execution, confident to deliver Driving Progress 2023 key targets
Strong execution, confident to deliver Driving Progress 2023 key targets Underlying earnings per share1 Return on Equity1 In Euro +10% Driving Progress Driving Progress CAGR 16.6% 3.08 2023 14.7% 14.5% 2023 2.56 +8%2 1.79 3% - 7% 1.65 UEPS CAGR 2020-2023E 13% - 15% 2021-2023E Set to exceed the targe
Slide 26: Q&A session
Q&A session GIE_AXA_Confidential
Slide 27: Appendices
Appendices GIE_AXA_Confidential
Slide 28: Table of contents
Table of contents 1. Debt and Invested Assets p.29 2. Additional IFRS17 disclosures p.33 GIE_AXA_Confidential
Slide 29: Gross financial debt and maturity breakdown as at June 30th, 2023
Gross financial debt and maturity breakdown as at June 30th, 2023 In Euro billion Gross financial debt Contractual maturity breakdown 0.5 Debt 21.7% 22.4% gearing 10.1 0.8 19.3 20.1 0.9 5.7 0.5 0.8 0.8 5.7 5.7 2023 2024 2025 2026 2027 2028 2029 2030 2031- ≥2040 Undated 2039 11.4 11.7 Economic maturi
Slide 30: General Account Invested Assets
General Account Invested Assets Invested assets (100%) 1H23 Total General Account In Euro billion 1H23 % invested assets Fixed income 337 73% Duration gap at ca. 0.2 year1 o/w Government bonds and related 166 36% o/w Corporate bonds 124 27% 1 o/w Other fixed income 47 10% 2 Euro Real estate 52 11% 4
Slide 31: Investment portfolio | Fixed Income reinvestment
Investment portfolio | Fixed Income reinvestment 1H23 Fixed Income reinvestment 1H23 Fixed Income reinvestment yield 5.5% 3.6% 3.8% Euro 18 billion Core Alternative Group Fixed Income fixed income Fixed Income ▶ Euro 18 billion fixed income invested at 3.8% Government bonds & related (46%) - Average
Slide 32: Table of contents
Table of contents 1. Debt and Invested Assets p.29 2. Additional IFRS17 disclosures p.33 GIE_AXA_Confidential
Slide 33: P&C | Margin Analysis
P&C | Margin Analysis Technical Result Financial Result In Euro million (pre-tax) In Euro million (pre-tax) 1H23 Change 1H23 Change Undiscounted Technical Margin 1,219 +702 Investment Income 1,532 - Gross Earned Premiums 25,254 +3% 1H23 Average Assets €107bn All Year Undiscounted Combined Ratio 95.2
Slide 34: P&C | Current Accident Year Discounting
P&C | Current Accident Year Discounting Current Accident Year Discounting Impact In Euro billion, pre-tax ▶ Only unpaid net claims reserves at the end of the period are ~2.0 discounted 1.2 1.1 ▶ At half year, discount rate is based on market rate curves of the last 2 quarters (last 4 quarters at ful
Slide 35: P&C | Insurance Finance Expenses
P&C | Insurance Finance Expenses Insurance Finance Expenses In Euro billion, pre-tax Accident Year Unwind Accident Year ▶ The stock of discount of past accident year claims reserves discount impact 2022 2023e 2024e unwinds over the duration of claims reserves (4 years’ average 2017 & prior n.a. -0.0
Slide 36: P&C | Focus on Reserves
P&C | Focus on Reserves Claims reserves ratio (Net claims reserves/Net earned premiums) 179% 185% 193% 188% 189% 198% 199% FY18 FY19 FY20 FY21 FY22 FY22 HY23 IFRS4 IFRS17 Technical reserves ratio (Net technical reserves1/Net earned premiums) 227% 233% 226% 227% 234% 245% 213% FY18 FY19 FY20 FY21 FY2
Slide 37: L&H | Margin Analysis
L&H | Margin Analysis Technical Results Financial Results In Euro million, pre-tax In Euro million, pre-tax 1H23 Change Short-term Technical Margin 80 -161 1H23 Change Gross Earned Premiums 7,142 -505 + Investment Income (non-VFA only) 1,222 -159 All Year Combined Ratio 98.9% +2pts 1H23 Average Asse
Slide 38: Scope
Scope ▪ France: includes insurance activities, banking activities and holdings. ▪ Europe: includes Switzerland (insurance activities), Germany (insurance activities and holding), Belgium (insurance activities and holding), Luxemburg (insurance activities and holding), United Kingdom and Ireland (ins
Slide 39: Glossary (1/2)
Glossary (1/2) ▪ Asset Management net flows: represent inflows of client money less outflows of client money. Net inflows are used by the Management to measure the impact of sales efforts, product attractiveness (mainly dependent on performance and innovation), and the general market trend in invest
Slide 40: Glossary (2/2)
Glossary (2/2) ▪ New Business Value (NBV): the value of newly issued contracts during the current year. It consists of the sum of (i) the new business contractual service margin, (ii) the present value of the future profits of short-term newly issued contracts during the period, carried by Life enti
Slide 41: Thank you
Thank you Half Year 2023 Earnings August 3, 2023 GIE_AXA_Confidential