Slide 1: Half Year 2017 Earnings presentation
Half Year 2017 Earnings presentation August 3, 2017
Slide 2: Important legal information and cautionary statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or objectives. Un
Slide 3: Table of contents
Table of contents 1. Introduction & highlights A.04 Thomas Buberl, Group CEO 2. 1H17 financial performance A.13 Gérald Harlin, Group CFO 3. Concluding remarks A.35 Thomas Buberl, Group CEO A3 Half Year 2017 Earnings l August 3, 2017
Slide 4: Introduction & highlights
1 Introduction & highlights Thomas Buberl, Group CEO
Slide 5: Strong earnings growth
Strong earnings growth In Euro Underlying earnings per share Adjusted earnings per share +5% +4% 1.21 1.26 1.33 1.39 Ambition 2020 3% - 7% UEPS CAGR target (2015-2020E) 1H16 1H17 1H16 1H17 A5 Half Year 2017 Earnings l August 3, 2017 Changes are on a reported basis
Slide 6: Growth in underlying earnings across all businesses
Growth in underlying earnings across all businesses In Euro million Life & Savings Property & Casualty Asset management +3% +6% +10% 1,903 1,984 1,347 236 1,274 213 1H16 restated 1H17 1H16 restated 1H17 1H16 1H17 A6 Half Year 2017 Earnings l August 3, 2017 Changes are in constant Forex
Slide 7: Growth in preferred segments
Growth in preferred segments Growth Technical Efficiency M&A margin +6% +2% 80% non-motor (+3% vs. 1H16) +4% 20% motor (+1% vs. 1H16) 1H16 1H17 Commercial lines P&C revenues FY15 FY16 Health revenues +11% +9% APE 40% Unit-Linked L&S NBV margin NBV in Asia excl. Japan 25% China NBV margin vs. 10% in
Slide 8: Technical margin – Property & Casualty
Technical margin – Property & Casualty Growth Technical Efficiency M&A margin Current year combined ratio -1.5 pts 98.4% 96.9% 96.1% 1H17 all year combined ratio Ambition 2020 95% - 94% All year combined ratio 1H16 restated 1H17 A8 Half Year 2017 Earnings l August 3, 2017 Changes are in constant For
Slide 9: Efficiency – on track to achieve Ambition 2020
Efficiency – on track to achieve Ambition 2020 Growth Technical Efficiency M&A In Euro billion margin 2.1 Administrative expenses Claims handling costs Acquisition expenses 1H17 0.2 Ambition 2020 FY16 0.3 FY16-1H17 Ambition 2020 +3% UEPS CAGR* achievement target 2015 – 2020E A9 Half Year 2017 Earnin
Slide 10: Disciplined capital management
Disciplined capital management Growth Technical Efficiency M&A margin Strong Solvency II ratio1 US IPO to accelerate portfolio shift 1H17 pre-tax underlying earnings excl. holdings 197% 201% 40% Property & Casualty 33% 26% US Savings and Asset management Protection & Health 1H16 1H17 A 10 Half Year
Slide 11: 1H17 initiatives to help people living a better life
1H17 initiatives to help people living a better life Climate change Sustainable finance Health 100% sustainable Pioneer in extending EU High-Level Expert Group on Sponsor of the world’s electricity by coal exclusion policy to Sustainable Finance: regulatory first Global Investor 2025 insurance busin
Slide 12: Ambition 2020 – On track on key objectives
Ambition 2020 – On track on key objectives Underlying earnings per share Free cash flows In Euro In Euro billion Ambition 6.2 6.2 Ambition +4% +5% 2020 2020 2.16 2.24 3% 28 - 32 1.21 1.26 - Euro billion 7% cumulative FCF UEPS CAGR1 FY15 FY16 1H16 1H17 FY15 FY16 Adjusted return on equity2 Solvency II
Slide 13: 1H17 financial performance
2 1H17 financial performance Gérald Harlin, Group CFO
Slide 14: Group earnings
Group earnings Life & Savings Property & Casualty Asset management Balance sheet A 14 Half Year 2017 Earnings l August 3, 2017
Slide 15: Underlying earnings
Underlying earnings In Euro million Underlying earnings Underlying earnings by segment 1H16 Constant +3% restated 1H17 Forex 3,063 3,171 Life & Savings 1,903 1,984 +3% Property & Casualty 1,274 1,347 +6% Asset Management 213 236 +10% Banking 60 52 -13% Holdings -387 -448 -15% 1H16 1H17 Underlying ea
Slide 16: Adjusted earnings
Adjusted earnings In Euro million Adjusted earnings Details of Adjusted earnings +3% 1H16 1H17 3,364 3,478 Underlying earnings 3,063 3,171 Net realized capital gains/losses 301 307 o/w realized capital gains 479 415 o/w net impairments -194 -66 o/w hedging of equity portfolio 16 -42 1H16 1H17 Adjust
Slide 17: Net income
Net income In Euro million Net income Details of Net income 1H16 1H17 +1% Adjusted earnings 3,364 3,478 3,207 3,268 Change in fair value & Forex -647 -154 o/w gains (losses) on economic hedges 1 -517 -281 o/w change in fair value of assets accounted -130 127 for as fair value option Exceptional and
Slide 18: Life & Savings
Group earnings Life & Savings Property & Casualty Asset management Balance sheet A 18 Half Year 2017 Earnings l August 3, 2017
Slide 19: L&S – New business sales and margins by market
L&S – New business sales and margins by market In Euro million Life & Savings NBV APE, NBV and NBV margin by market +2% Type of market APE NBV NBV margin (%) 1,296 1,335 1H17 change 1H17 change 1H17 change Mature markets 2,638 +2% 1,033 0% 39% -0.9 pt Emerging markets 692 -2% 302 +9% 44% +4.5 pts TO
Slide 20: L&S – New business sales and margins by business
L&S – New business sales and margins by business Net flows APE Net Flows NBV Business Lines (Euro million) margin (Euro billion) 1H16 1H17 change 1H17 1H17 In Euro billion restated Protection & Health +4.3 Protection & Health 1,539 +1% 60% +3.9 +4.3 G/A Traditional1 -2.9 G/A Savings 614 -16% 18% -0.
Slide 21: L&S – Underlying earnings by business
L&S – Underlying earnings by business In Euro million Total Life & Savings Underlying earnings by business (post-tax) (pre-tax) Protection & Health G/A Savings Unit-Linked +3% -10% 1,903 1,984 1,355 +35% 1,233 -4% 617 415 428 449 1H16 1H17 1H16 1H17 1H16 1H17 restated restated restated - Mortality m
Slide 22: Property & Casualty
Group earnings Life & Savings Property & Casualty Asset management Balance sheet A 22 Half Year 2017 Earnings l August 3, 2017
Slide 23: P&C – Revenues by business
P&C – Revenues by business In Euro million Total revenues Or +2.3% excl. Price +1.4% Turkey Revenues effect 20,876 20,983 1H17 change 1H17 Personal lines 10,363 +1% +2.7% of which non-motor +3% Commercial lines 10,577 +2% +1.7% of which non-motor +3% 1 TOTAL 20,983 +1% +2.2% 1H16 1H17 restated A 23
Slide 24: P&C – Underlying earnings
P&C – Underlying earnings Total underlying earnings Combined ratio In Euro million Current year combined ratio + Prior year reserve developments All year combined ratio +6% 98.4% 96.9% 0.1% 96.4% 96.1% 0.7% 1,347 -1.9% 1,274 -0.7% 1H16 1H17 + Lower nat cat 1H16 1H17 restated - Higher natural events
Slide 25: Asset management
Group earnings Life & Savings Property & Casualty Asset management Balance sheet A 25 Half Year 2017 Earnings l August 3, 2017
Slide 26: Asset management
Asset management Total underlying earnings Details of asset management In Euro million Net flows and average AUM in Euro billion, revenues and underlying earnings in Euro million +10% Net flows Average AUM Revenues Underlying earnings 236 213 1H17 1H17 change 1H17 change 1H17 change 1 AXA IM -4 627
Slide 27: Balance sheet
Group earnings Life & Savings Property & Casualty Asset management Balance sheet A 27 Half Year 2017 Earnings l August 3, 2017
Slide 28: Asset & Liability Management (1/4)
Asset & Liability Management (1/4) Total General Account Invested Assets Long asset duration Fixed income assets duration as of June 30,2017 39% Life & Savings 8.2 years Policy loans (1%) Govies & related Alternative investments1 (3%) Listed equities (4%) Euro 575 Property & Casualty 5.5 years Cash
Slide 29: Asset & Liability Management (2/4) – Ratings
Asset & Liability Management (2/4) – Ratings Government and related bonds Corporate bonds1 11% 39% AA AA 34% A 26% Euro 227 12% Euro 200 AAA billion AAA billion Non rated (2%) 15% A Below investment grade (7%) Below investment grade (1%) 18% BBB 36% BBB Average rating maintained in the AA range Aver
Slide 30: Asset & Liability Management (3/4) – New investments
Asset & Liability Management (3/4) – New investments New fixed income investments Resilient new investment yield Below Investment Grade credit1 (6%) ABS (~10%) Yield on new investments in fixed income assets for Life & Savings and Property & Casulaty entities 1H172 Eurozone 1.9% ~ 26% 1H17 new inves
Slide 31: Asset & Liability Management (4/4) - Life & Savings General Account
Asset & Liability Management (4/4) - Life & Savings General Account Investment margin1 Details of spread above guaranteed rates 75 bps Average Spread above 71 bps 1H17 Yield on assets Guidance guaranteed rates guarantee 65-75 bps Inforce 3.1% 1.9% +120bps New business 2.0% 0.3% +170bps • Significant
Slide 32: Shareholders’ equity
Shareholders’ equity In Euro billion 1H17 vs. FY16 70.6 68.0 - Dividends -2.8 - Share buyback -0.9 - Change in net unrealized capital gains -0.2 - Subordinated debt (incl. interest charges) -0.1 + Net income for the period +3.3 + Change in pension benefits +0.4 FY16 1H17 Adjusted 13.5% 14.7% - Forex
Slide 33: Debt & Ratings
Debt & Ratings Financial debt Debt ratios In Euro billion 18.3 FY16 1H17 16.9 Debt gearing 26% 26% 8.1 Interest cover 2 15.7x 15.6x 7.8 Ratings 9.1 8.0 AA- as of 10/05/2017 stable 1.1 1.1 Aa3 as of 09/09/2016 stable FY16 1H17 Undated subordinated debt AA- as of 31/05/2017 Subordinated debt1 stable S
Slide 34: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion Ratio as of June 30, 2017 201% 197% 201% Solvency II ratio Interest rate +50bps 206% +5 pts 57.9 58.7 Interest rate -50bps 192% -9 pts 29.4 29.3 Available capital Corporate spreads +75bps 200% -1 pt Required capital Equity market
Slide 35: Concluding remarks
3 Concluding remarks Thomas Buberl, Group CEO
Slide 36: Key takeaways
Key takeaways Strong earnings per share growth supported by growth in all business lines Focused topline growth Strong technical improvement A 36 Half Year 2017 Earnings l August 3, 2017
Slide 37: Q&A
Q&A
Slide 38: Notes (1/2)
Notes (1/2) Page A10: 1. The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016 Page A12: 1. Compound annual gro
Slide 39: Notes (2/2)
Notes (2/2) Page A28: 1. Mainly Private Equity and Hedge Funds 2. Other fixed income include Asset backed securities (Euro 13 billion), residential loans (Euro 12 billion), commercial & agricultural loans (Euro 21 billion) and Agency Pools (Euro 1 billion) 3. 1H17 invested assets referenced in page
Slide 40: Definitions (1/2)
Definitions (1/2) AXA’s 1H17 financial statements are subject to a completion of limited review by AXA’s independent auditors AXA's 1H17 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of June 30, 2017 Underlying earnings,
Slide 41: Definitions (2/2)
Definitions (2/2) Direct (P&C): AXA Global Direct (Belgium, France, Italy, Japan, Poland, South Korea and Spain), UK Direct operations. In France, Natio is not included in revenues due to consolidation under equity method. Emerging markets include the following entities: EMEA-LATAM Region (Brazil, C
Slide 42: Half Year 2017 Appendices
Half Year 2017 Appendices August 3, 2017
Slide 43: Important legal information and cautionary statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or objectives. Un
Slide 44: Table of contents
Table of contents 1. BUSINESS OVERVIEW B.04 2. GROUP B.12 3. LIFE & SAVINGS B.16 4. PROPERTY & CASUALTY B.32 5. HEALTH B.39 6. ASSET MANAGEMENT B.41 7. BALANCE SHEET B.44 8. CORPORATE RESPOSIBILITY B.67 B3 Half Year 2017 Earnings l Appendices l August 3, 2017
Slide 45: B1 Business Overview
B1 Business Overview
Slide 46: Group revenues and underlying earnings
Group revenues and underlying earnings 1H17 Revenues by geography 1H17 Underlying earnings by geography Other1 12% Other1 10% France2 23% Asia (incl. Japan) 16% France2 24% Asia (incl. Japan) 9% Euro 54 billion Euro 3.2 billion3 United States 17% United States 16% Europe (excl. France) 40% Europe (e
Slide 47: Life & Savings | Scope Overview
Life & Savings | Scope Overview Global footprint Well balanced business mix 1H17 APE by geography 1H17 APE by business Mutual Funds & other 10% G/A Savings 18% Asia (incl. Japan) 26% Other1 2% Euro 3,330 million France 27% Euro 3,330 Unit-Linked 25% Protection & Health 46% million Strong proprietary
Slide 48: Property & Casualty | Scope Overview
Property & Casualty | Scope Overview Global footprint Well balanced business mix 1H17 revenues by geography 1H17 revenues by business Other3 14% Other1 11% Construction 2% Workers’ compensation 5% AXA CS 8% France 17% Euro 21 Motor 39% Liability 8% billion Asia 3% Health 10% Euro 21 EMEA-LATAM2 UK &
Slide 49: AXA’s footprint in emerging markets
AXA’s footprint in emerging markets Life & Savings Property & Casualty 1H17 APE by geography 1H17 revenues by geography Czech Republic 3% Poland 2% Key rankings2 2016 Poland 2% Key rankings2 2016 Philippines 4% Thailand 2% Mexico 2% Brazil 3% Other1 4% #5 Hong Kong Singapore 6% #2 Mexico Mexico 27%
Slide 50: L&S Economic Gross Revenues
L&S Economic Gross Revenues 1 2 Economic Gross Revenues 1H16 Change on IFRS change on 1H17 In Euro million restated comparable basis comparable basis United States 6,925 7,727 +8% +8% France 7,916 8,115 +2% +3% Germany 3,325 3,377 +2% +2% Switzerland 5,119 4,945 -5% -5% Belgium 614 561 -9% -9% Italy
Slide 51: P&C Economic Gross Revenues
P&C Economic Gross Revenues Economic Gross Revenues 1 1H16 Change on 2 IFRS change on 1H17 In Euro million restated comparable basis comparable basis France 3,703 3,641 0% 0% United Kingdom & Ireland 2,565 2,462 +5% +5% Germany 2,517 2,576 +2% +2% Switzerland 2,771 2,856 +1% +1% Belgium 1,102 1,116
Slide 52: Asset management | Scope overview
Asset management | Scope overview Complementary business models PRODUCT • Multi-expert model: structured by “Expertise” • Risk-reducing, return-seeking, diversifying strategies OFFER • Expertise in fixed income, equities, quantitative and customized solutions equities • Expertise in actively managed
Slide 53: B2 Group
B2 Group
Slide 54: Revenues
Revenues Revenues by segment 1H16 Reported Comparable In Euro million 1H17 change change restated Life & Savings 31,063 31,118 0% -1% Property & Casualty 20,876 20,983 +1% +1% Asset Management 1,799 1,941 +8% +6% Banking 297 240 -19% -16% Revenues 54,035 54,283 0% 0% B13 Half Year 2017 Earnings l Ap
Slide 55: Underlying earnings by geography
Underlying earnings by geography Underlying earnings Underlying earnings In Euro million 1H16 Reported Change at In Euro million 1H16 Reported Change at 1H17 1H17 restated change constant Forex restated change constant Forex Life & Savings 1 903 1 984 +4% +3% Property & Casualty 1 274 1 347 +6% +6%
Slide 56: 1H17 Key sensitivities
1H17 Key sensitivities P&L Balance Sheet Impairments net of Change 1 in fair value Total impact Net income Net unrealized capital In Euro billion hedges through and Forex through gains through (incl. impact through Adjusted Earnings Net Income Adjusted earnings) Shareholders' Equity -25% -0.4 -0.6 -
Slide 57: B3 Life & Savings
B3 Life & Savings
Slide 58: Life & Savings
Life & Savings 1. Revenues, new business volumes and profitability B.18 2. Underlying earnings margin analysis B.19 3. Underlying earnings margin analysis by business B.25 4. Focus on the US B.31 B17 Half Year 2017 Earnings l Appendices l August 3, 2017
Slide 59: L&S | Revenues and net flows
L&S | Revenues and net flows 1H17 L&S revenues by region 1H17 L&S net flows In Euro billion In Euro billion EMEA-LATAM and other1 Asia (incl. Japan) -4% Net flows by country/region Net flows by business -4% 1H16 0.7 In Euro billion 1H17 1H16 In Euro billion 1H17 4.1 France restated restated 8.0 +3%
Slide 60: L&S | Underlying earnings margin analysis
L&S | Underlying earnings margin analysis Gross margin 1 Expenses 1 In Euro million 1H17 Change In Euro million 1H17 Change 2 Margin on revenues 2,401 -4% Acquisition expenses 2,049 -5% Margin on assets 2,911 +3% Admin. Expenses 1,515 +5% Technical margin 520 -14% VBI amortization 27 -68% + - + UE f
Slide 61: L&S | Margin analysis
L&S | Margin analysis Details of margin on revenues Margin on revenues Average margin on L&S revenues 1 7.7% -0.2 pt -0.1 pt business mix Detail by product -0.1 pt country mix Protection & Health: 12.5% G/A Savings: 2.3% Unit-Linked: 1.8% Mutual funds & other: 5.4% Margin on revenues1 x Euro 2,401 m
Slide 62: L&S | Margin analysis
L&S | Margin analysis Details of margin on Unit-Linked assets Investment margin Average management fees on Unit-Linked reserves 79 bps 0 bp 158 bps annualized -0.5 bp business mix Unit-Linked management fees +0.4 bp country mix x Euro 1,371 million +7% Margin on assets1 Unit-Linked average reserves
Slide 63: L&S | Margin analysis
L&S | Margin analysis Details of margin on General Account assets Investment margin Unit-Linked management fees Euro 1,371 million +7% Average management fees on general Margin on assets1 + account reserves Euro 2,911 million +3% 35 bps -2 bps 71 bps annualized -2 bps business mix General account
Slide 64: L&S | Margin analysis
L&S | Margin analysis Details of technical margin Technical margin Mortality & morbidity margin and other 1 Euro 744 million -16% Technical margin + Euro 520 million -14% GMxB Variable Annuity margin Euro -225 million +20% In Euro billion o/w basis 16 o/w volatility (equity and interest rates) 3
Slide 65: L&S | Margin analysis
L&S | Margin analysis Focus on gross technical margin Gross mortality, morbidity & surrender margin (pre-tax) In Euro million -16% 883 744 1H17 evolution mainly explained by: • Mortality model changes in the US (Euro -0.1 billion) 1H16 1H17 restated Gross GMxB Variable Annuity technical margin (pre-
Slide 66: L&S | Underlying earnings by business
L&S | Underlying earnings by business 1H16 In Euro million 1H17 % change1 restated Protection & Health 1,355 1,233 -10% G/A Savings 415 428 -4% Unit-Linked 449 617 +35% Mutual funds & Other 77 51 -13% Pre-tax Underlying earnings 2,295 2,329 0% Tax and Minority interest -392 -345 +12% Underlying earn
Slide 67: L&S | Margin analysis by business
L&S | Margin analysis by business Protection & Mutual Funds & In Euro million G/A Savings Unit-Linked Health Other Margin on 8% 2,081 126 146 48 revenues of GWP Main profit drivers Investment 71 bps 395 772 113 35 margin of avg. G/A reserves2 158 bps Management fees 110 1,261 of avg. UL reserves2 Te
Slide 68: L&S | Margin analysis by business
L&S | Margin analysis by business Protection & Health Technical results Unit-Linked management fees Net investment margin In Euro million In Euro million In Euro million Comp. Comp. Comp. 1H17 1H17 1H17 Change Change Change Protection & Health Protection & Health Protection & Health 16,680 0% 16,552
Slide 69: L&S | Margin analysis by business
L&S | Margin analysis by business Protection & Health – Details on Combined Ratio Combined ratio + 0.8 pt 95.4% 96.1% Expense Ratio1 13.3% 13.1% Expense ratio Expense ratio improved by 0.2 point: + Lower VBI amortization mainly following the non-repeat of 2016 assumption updates Loss Ratio 82.1% 83.
Slide 70: L&S | Margin analysis by business
L&S | Margin analysis by business G/A Savings In Euro million Comp. Comp. 1H17 1H17 Change Change G/A Savings G/A Savings average 5,542 -16% 192,286 +2% Gross revenues reserves x x Margin on G/A Savings investment 2.3% +0.1 pt 40 bps -2 bps G/A Savings revenues spread 80 bps annualized Comp. 1H17 Ch
Slide 71: L&S | Margin analysis by business
L&S | Margin analysis by business Unit-Linked In Euro million 1H17 Comp. 1H17 Comp. change change Unit-Linked Gross Unit-Linked 8,070 +9% 156,632 +7% revenues average reserves x x Average margin on Unit- UL average 1.8% -0.8 pt 81 bps -1 bp Linked revenues management fees Comp. 161 bps annualized 1H
Slide 72: L&S | Focus on the US
L&S | Focus on the US US Variable Annuity GMxB Underlying earnings US L&S Underlying earnings In Euro million In Euro million 513 484 431 462 Net of DAC and tax1 FY15 FY16 1H16 1H17 Variable Annuity base fees & other, less 349 331 169 164 expenses2 1H14 1H15 1H16 1H17 GMxB hedge margin -13 23 -21 13
Slide 73: B4 Property & Casualty
B4 Property & Casualty
Slide 74: P&C | Revenues and net new contracts
P&C | Revenues and net new contracts 1H17 Revenues by markets 1H17 P&C personal net new contracts In thousands Direct 7% Of which: +26 in Direct Emerging markets -78 in Mature 13% +146 in Emerging +94 Total Of which: -91 in Direct Euro 21 billion +3 in Mature -381 in Emerging -469 1H16 1H17 Changing
Slide 75: P&C | Pricing effect by geography
P&C | Pricing effect by geography Personal Lines Commercial Lines 1H17 Price Revenues Price Revenues effect growth effect growth FY17 Market pricing trends Slight increase in prices expected in Personal lines. France +1.4% -0.5% +2.2% -0.4% Market continues to be competitive in Commercial lines Pric
Slide 76: P&C | Underlying earnings analysis
P&C | Underlying earnings analysis Net technical result Net investment result In Euro million Comp. In Euro million Comp. 1H17 1H17 Change Change Revenues 20,983 +1.4% Average P&C assets 72,919 +1.5% x x 1 3 Combined ratio (in %) 96.1% -0.2pt Average Asset Yield 3.1% +0.0pt 2 Net technical result 69
Slide 77: P&C | Details on Combined Ratio
P&C | Details on Combined Ratio Combined ratio Expense ratio 0.0 pt -0.2 pt 26.7% 26.7% 96.4% 96.1% -0.3 pt +0.4 pt Expense ratio 26.7% 26.7% 1H16 restated Acquisition Administrative 1H17 Expenses Expenses Loss ratio -0.3 pt Loss ratio 69.7% 69.4% 69.7% +1.2 pts 69.4% -0.9 pt -0.6 pt 1H16 Current Na
Slide 78: P&C | Details on current year loss ratio
P&C | Details on current year loss ratio Personal motor Personal non Motor 75.3% +1.9pts 63.1% +1.9pts +0.8pt 62.9% 74.3% -0.5pt -0.8pt -1.5pts -1.6pts -1.4pts 1H16 Nat Cat Price effect Freq & Sev Other1 1H17 1H16 Nat Cat Price effect Freq & Sev Other1 1H17 restated restated Total Commercial lines T
Slide 79: P&C | Focus on reserve development
P&C | Focus on reserve development Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 2.0% 1.7% 2.1% 1.8% 1.8% 1.9% 0.9% 1.4% 1.2% 1.2% 1.3% 1.4% 1.2% 0.6% 0.7% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15*
Slide 80: B5 Health
B5 Health
Slide 81: Health | Revenues and profitability
Health | Revenues and profitability 1H17 Health revenues 1H17 Health revenues by country In Euro million In Euro billion +6% 6,240 6,523 Other1 (5%) Asia (6%) EMEA-LATAM (9%) 1H16 1H17 France (29%) Combined ratio Euro Japan (11%) 6.5 billion -0.4pt 95.5% 95.1% UK (16%) Germany (24%) 1H16 1H17 Change
Slide 82: B6 Asset Management
B6 Asset Management
Slide 83: Asset Management | Underlying earnings
Asset Management | Underlying earnings Details of Asset Management margin analysis Margin1 Expenses1Expenses 2 In Euro million 1H17 Change 1H17 Change2 Asset management fees 1,831 3 +6% Asset management expenses 1,349 +6% Distribution revenues 336 -2% Investment result 6 n.a Distribution expenses 35
Slide 84: Asset Management | Revenues
Asset Management | Revenues Details of Asset Management revenues Average management fees on average assets under management 31 bps +1 bp Asset management fees x Euro 1,714 million +7% o/w performance fees Euro 30 million (-5%) Average assets under o/w research fees Euro 205 million (-8%) management1
Slide 85: B7 Balance Sheet
B7 Balance Sheet
Slide 86: Balance sheet
Balance sheet 1. General Account invested assets B.46 I. Government Bonds and related B.47 II. Corporate Bonds B.49 III. Asset Backed Securities B.53 IV. Equity B.54 V. Real Estate B.56 VI. Hedge Funds B.57 VII. Private Equity B.58 VIII. Mortgage Loans B.59 2. Focus on net unrealised capital gains B
Slide 87: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY16 % 1H17 % In Euro billion Published Changes in asset mix Fixed income 485 83% 474 82% o/w Govies and related 236 40% 227 39% o/w Corporate bonds 202 35% 200 35% Forex: negative impact from the o/w Asset backed securities 13 2% 13 2% apprecia
Slide 88: Government bonds and related
Government bonds and related Breakdown by geography Breakdown by segment Austria 3% Netherlands 2% Ireland 2% Supranational P&C Institutions 5% 10% France 20% Switzerland 6% L&S Spain 6% 90% Euro 227 billion Other 7% Japan 13% Gross1 unrealised capital gains and losses In Euro billion 40.9 36.2 US 9
Slide 89: Government bonds and related
Government bonds and related Focus on exposure to Eurozone peripheral countries Exposure by issuer Gross book value Gross market value Gross book value Gross market value In Euro billion December 31, 2016 December 31, 2016 June 30, 2017 June 30, 2017 Italy 20.6 23.0 19.3 21.7 Spain 11.9 15.0 11.6 14
Slide 90: Corporate bonds
Corporate bonds Breakdown by industry Breakdown by segment Other 5% Basic materials 4% P&C Financials 5% 17% Consumer Cyclical 6% L&S Banks 37% 83% Energy 6% Euro 200 billion Gross1 unrealised capital gains and losses Communications In Euro billion 8% 8.0 7.5 Industrials 8% Consumer Utilities 8% non
Slide 91: Corporate bonds
Corporate bonds Breakdown by entity and rating (including CDS) P = Participating NP = Non-participating 1 In Euro billion France US Belgium Germany Switzerland Japan Other Total As of June 30, 2017 P NP P NP P NP P NP P NP P NP P NP P NP AAA 2.3 0.9 0.1 0.4 0.0 0.1 9.2 1.1 7.2 1.1 - 1.0 0.2 0.4 19.1
Slide 92: Focus on banking corporate bonds
Focus on banking corporate bonds Gross market value Senior Debt Subordinated Debt Total in Euro billion Secured Non secured Lower Tier 2 Upper Tier 2 Tier 1 Preferred 1 By rating : AAA 22.3 0.8 0.0 0.0 0.0 0.0 23.1 AA 4.1 7.0 0.2 0.0 0.0 0.0 11.2 A 3.6 21.0 2.0 0.0 0.0 0.0 26.6 BBB 0.5 6.7 3.9 0.2 0
Slide 93: Focus on CDS
Focus on CDS CDS mainly used as alternative to investment grade corporate bonds • Net CDS exposure excluding NBT strategy mainly corresponds to an “overlay” strategy (synthetically replicate corporate bonds by selling CDS on top of government bonds to enhance return) • NBT strategy: buy credit deriv
Slide 94: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Other asset-backed Mortgage-backed Below investment Non rated/Equity 2% grade 4% BBB 2% CLO 88% A 12% US Subprime, Alt-A & NC RMBS 4% Euro 13 billion Commercial MBS 3% Euro 13 billion Prime Residential 3% Consumer ABS2 1% CDO 2% AA
Slide 95: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by geography Breakdown by segment Holding 1% Rest of the World 14% P&C 22% France 24% Other Eurozone L&S Countries 10% 77% UK 4% Euro 21 billion Gross1 unrealised capital gains and losses Switzerland In Euro billion 4.1 5% 3.5 Belgium 6% US 22% Japan 7% Ger
Slide 96: Shareholders’ exposure to listed equity
Shareholders’ exposure to listed equity Estimated shareholders’ exposure to listed equity In Euro billion FY16 1H17 19 21 7 8 Gross Group share net Gross Group share net nominal 100% of hedge, tax & PB nominal 100% of hedge, tax & PB B55 Half Year 2017 Earnings l Appendices l August 3, 2017
Slide 97: Real estate investments
Real estate investments Defensive portfolio with good performance over the long term Breakdown by geography Breakdown by segment US 2% Japan 1% UK 5% Other Eurozone P&C countries 8% 19% Switzerland 37% L&S Germany 10% 81% Market value1 Euro 31 billion Breakdown by type and geography Belgium 10% Swit
Slide 98: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 9 managers Multi-Strategy Relative value credit 7% program 33% Real asset cash flow 11% Market value Alternative Credit program Short dated carry 54% Euro 8 billion 67% Deep value credit 28% Multi-Str
Slide 99: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Other 7% Venture 4% Japan 2% Private debt 11% Infrastructure 14% Buy-out 71% US 31% Market value Euro 8 billion Diversified portfolio Europe 60% Direct 44% Funds of funds 56% As of June 30, 2017 B58 Half
Slide 100: Mortgage loans & other
Mortgage loans & other Low risk mortgage loan portfolio 1H17 market value by entity1 35% 20% Switzerland Germany Other 7% 47% Residential Switzerland 35% 86% Residential France 10% 53% Commercial 14% Commercial Market value2 28% 10% Euro 33 billion United States France 24% 12% Residential Agricultur
Slide 101: Focus on net unrealised capital gains
Focus on net unrealised capital gains Balance sheet net unrealised capital gains Off balance sheet net unrealised capital gains In Euro billion In Euro billion 14.7 14.2 4.2 4.3 1.6 1.7 2.0 2.1 Equities & other1 Corporate bonds Government bonds 11.2 10.4 and related FY16 1H17 FY16 1H17 2.8 2.2 2.4 N
Slide 102: Asset & Liability management (1/2)
Asset & Liability management (1/2) Life & Savings General Account investment spreads and margin Investment margin1 Details of spread above guaranteed rates 75 bps Average Spread above 71 bps 1H17 Yield on assets Guidance guaranteed rates guarantee 65-75 bps Inforce 3.1% 1.9% +120bps New business 2.0
Slide 103: Asset & Liability Management (2/2)
Asset & Liability Management (2/2) Life & Savings General Account investment spreads above guarantees for main entities France Germany Switzerland Belgium AXA MPS 310 bps 0 bps 110 bps 70 bps 150 bps Inforce 3.8% 3.4% 3.4% 1.9% 3.9% 1.2% 2.7% 2.7% 0.7% 1.2% business 190 bps 90 bps 130 bps New 70 bps
Slide 104: Net financial debt – Long-term maturities
Net financial debt – Long-term maturities Net financial debt Contractual maturity breakdown In Euro billion In Euro billion 3.4 Debt 26% 26% 3.0 gearing 0.8 18.3 5.1 16.9 1.8 0.3 3.3 0.4 8.1 2017 2018 2019 2020 2021-2025 2026-2040 Undated 7.8 Economic maturity breakdown In Euro billion 0.8 9.1 0.3 4
Slide 105: Adjusted ROE
Adjusted ROE 1H16 In Euro million 1H17 published Adjusted earnings 3,364 3,478 Interest charges on undated debt -140 -117 Average adjusted shareholders’ equity 44,225 45,782 Adjusted ROE 14.6% 14.7% B64 Half Year 2017 Earnings l Appendices l August 3, 2017
Slide 106: Solvency II
Solvency II Solvency II ratio Key sensitivities In Euro billion Ratio as of June 30, 2017 201% 197% 201% Solvency II ratio Interest rate +50bps 206% +5 pts 57.9 58.7 Interest rate -50bps 192% -9 pts 29.4 29.3 Corporate spreads +75bps Available capital 200% -1 pt Required capital Equity markets +25%
Slide 107: Solvency II required capital
Solvency II required capital Split by Risk, Geography & Business Required capital by risk Required capital by business Required capital by geography 1H17 FY16 FY16 Asset Management Operational Asset Management & Banking UK & Banking Counterparty 5% Holdings & Other 4% Belgium 4% 3% Holdings & 7% 6%
Slide 108: B8 Corporate Responsibility
B8 Corporate Responsibility
Slide 109: Main SRI rating
Main SRI rating 12th overall/worldwide and 1st insurer by number of SRI funds in its capital (Ipreo, Q2 2016) 2016 Sector leader, Ranked “A+” in the 2016 N°2 out of 150 insurance Included in “Assessment Report” (Responsible companies Vigeo Euronext indices Investment strategy) Score: 87/100 Score: 8
Slide 110: ESG integration into investments
ESG integration into investments AXA’s “ESG + Carbon” RI Strategy “ESG + CARBON” SECTOR GUIDELINES IMPACT INTEGRATION & EXCLUSIONS INVESTING Long-term ESG integration process: gradual ESG Footprint Committee: ad-hoc exclusions Two “impact investment” funds and systematic integration of tangible ESG