Axa Sa · EURONEXT:CS
Axa Sa — Investor Presentation (October 2024)
40 slides from Axa Sa's investor presentation, Oct 31, 2024
Slide 1: AXA Investor Roundtable
AXA Investor Roundtable October 31, 2024
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: Introduction
Introduction Alban de Mailly Nesle, Group CFO
Slide 4: AXA today: distinctive model with a balanced profile and high-quality businesses
AXA today: distinctive model with a balanced profile and high-quality businesses Balanced Leaders in the markets model we compete in ✓ Diversified risk profile ~50% Largest global underwriter Commercial Insurance of corporate risks ✓ At scale in all core markets with growth potential 15% #1 Global P
Slide 5: Strategic Plan 2024-2026 "Unlock the Future"
Strategic Plan 2024-2026 “Unlock the Future” Growing and strengthening our core businesses with rigorous execution ▶ Expanding AXA’s responsible role in Driving higher organic growth society through selective expansion and growing distribution Developing inclusive insurance offers ▶ Care & Dare: peo
Slide 6: AXA Belgium, AXA Japan and AXA XL Insurance at a glance and leveraging Data & AI
AXA Belgium, AXA Japan and AXA XL Insurance at a glance and leveraging Data & AI to unlock benefits across the value chain Leveraging Data & AI across the value chain AXA Belgium AXA Japan AXA XL Insurance ✓ Revenue enabler 27%1 33%1 ✓ Margin enhancer of FY23 of FY23 Group UE Group GWP ex Holdings ✓
Slide 7: Data & AI
1 Data & AI Alexander Vollert, Group COO & CEO AXA Group Operations Markus Keller, COO AXA Switzerland
Slide 8: AI to profoundly change the insurance industry over the next decade
AI to profoundly change the insurance industry over the next decade Data & AI Roundtable Success depends on scale and focus, with a mix of global steering & local empowerment ▶ Business in driver’s seat to determine highest- value (Gen)AI use cases across the value chain ▶ Scalable approach enabling
Slide 9: Capitalizing on the (Gen)AI opportunity
Capitalizing on the (Gen)AI opportunity At AXA Insurance: a data rich industry, ideal for leveraging (Gen)AI Opportunity to extract further value by leveraging (Gen)AI on vast amounts of 3.6bn number of documents with unstructured data currently untapped unstructured data from voice, text and images
Slide 10: Benefits of (Gen)AI across the insurance value chain
Benefits of (Gen)AI across the insurance value chain Select initiatives (Gen)AI augmented agent: Real-time knowledge support Revenue and cross-sell recommendations to agents enabler Smart new business triage: Faster intake and triage of incoming Commercial Lines business from brokers Benefits includ
Slide 11: AXA Switzerland: A strategic roadmap to leverage (Gen)AI
AXA Switzerland: A strategic roadmap to leverage (Gen)AI Laying the foundations 2024-2026+: Ambitious (Gen)AI vision Customer Underwriting Data ▶ (Gen)AI augmented operator for ▶ (Gen)AI augmented underwriter 15 years of curated data complex inquiries (e.g. transcription, during risk selection, T&C
Slide 12: AXA Switzerland: demonstrating the benefits from (Gen)AI
AXA Switzerland: demonstrating the benefits from (Gen)AI Video 1 Mission Why? What? Benefits automation Call center Support contact center operator with augmented A lot of time needed for admin. tasks during & Operating claims handler receives 20% reduced call handling time workplace and fully after
Slide 13: Long term play but contribution already expected in the current plan
Long term play but contribution already expected in the current plan 2026+ Industrializing 2024 – 2026 Systematic scaling of 2023 Scaling use cases across entities Testing Roll out of scaling Expansion of (Gen)AI approach on (Gen)AI FR GE XL JP … with independent FR GE XL JP … approaches ² ² Fast ad
Slide 14: AXA Belgium
2 AXA Belgium Etienne Bouas-Laurent, CEO AXA Belgium Antoine Boyer de la Giroday, CFO AXA Belgium
Slide 15: Leading player in a mature and profitable Belgian insurance market
Leading player in a mature and profitable Belgian insurance market with top positions in P&C and Group AXA Belgium Life & Health Roundtable Strong technical excellence and successful Retail Life transformation Clear right to win with strong broker relationships, Etienne Bouas-Laurent high customer s
Slide 16: Attractive insurance market with clear growth drivers
Attractive insurance market with clear growth drivers Market size by line of business1 Mature market with clear growth drivers GWP in EUR billion Steadily growing market, driven by P&C and Health, while Life impacted by 32.4 CAGR regulatory changes and interest rate environment 28.4 Below average pe
Slide 17: Market leader with unique capabilities to drive growth
Market leader with unique capabilities to drive growth AXA Belgium business mix FY23 GWP #1 insurance brand3 & large customer base 2m individuals, 300k corporates, and 1m affiliated clients P&C Commercial (28%) Contribution to Group as of FY23 EUR P&C Retail (31%) 3.9 Group Life (23%) Strong distrib
Slide 18: Driving growth in P&C, leveraging distribution and innovation
Driving growth in P&C, leveraging distribution and innovation Focused and Strong positioning, Innovation enhancing diversified distribution with high growth potential in SMEs the whole value chain FY22 GWP by distribution channel Direct Others (10%) (3%) Market growth1 CAGR 2020-2023 +5% +7% +4% Cus
Slide 19: Attractive and growing capital-light Life & Health business
Attractive and growing capital-light Life & Health business In Euro billion Well-positioned Renewed ambition Leading employee Group pension business in Retail business benefit franchise +4% -2% +5% CAGR CAGR CAGR 0.7 +20% UL 0.3 High share of UL Market GWP Market GWP (56% of individual savings) Mark
Slide 20: Geared for sustained performance
Geared for sustained performance Gross written premiums Underlying earnings Ordinary cash remittance ratio in EUR billion in EUR million Annual growth -1% +3% +2% +8% +3% +2% CAGR CAGR 3.9 391 410 91% 89% 93% 3.4 3.4 3.5 3.6 381 85% 85% Bernd 358 Floods 2.3 243 2.0 2.0 2.1 2.2 1.4 1.3 1.4 1.4 1.6 20
Slide 21: AXA Japan
3 AXA Japan Seiji Yasubuchi, CEO AXA Japan Christophe Avenel, CFO AXA Japan
Slide 22: Solid franchise with an attractive positioning in select Life and Health segments
Solid franchise with an attractive positioning in select Life and Health business segments AXA Japan Roundtable Strong distribution network, well-balanced between proprietary and broker channels Innovative product capabilities and differentiated Seiji Yasubuchi service proposition, driving profitabl
Slide 23: Attractive Japanese insurance market
Attractive Japanese insurance market Japan market size by line of business GWP3 in JPY trillion Large and profitable insurance market 42 44 #3 Life & #8 P&C market¹ in the world, with attractive profitability 38 36 37 10 9 Diversified Life distribution network (brokers and proprietary channels) 10 1
Slide 24: High-quality business, leader in select markets
High-quality business, leader in select markets AXA Japan business mix FY23 GWP and market share Strong local presence since 1994, with 4.3m customers, 8.8k employees & 318 offices Contribution to Group Protection with Savings2 (58%) as of FY23 EUR Health (25%) 5.31 Distinctive distribution channels
Slide 25: Profitable and growing Life & Health business
Profitable and growing Life & Health business Business fundamentals in place to capture value… ▶ Successful transformation of the Life & Health portfolio Shifted away from high-guaranteed, legacy G/A Savings products to capital-light business ▶ Innovative product design, driving key competitive adva
Slide 26: Leveraging distinctive capabilities
Leveraging distinctive capabilities Unique and diversified distribution, Differentiated services aiming to increase size and productivity driving new business growth Unique access to SMEs Lead generating business models CCI ca. 4k Strong ties with ca. 99% of local Chambers of Commerce & Industry (CC
Slide 27: Consistent track record
Consistent track record Gross written premiums Underlying earnings Ordinary cash remittance ratio in JPY billion in JPY billion +5% +3% CAGR CAGR Net Covid-19 unadjusted impact 806 70% 72% 737 753 58 60% 60% 60% 653 662 58 59 56 57 70 73 78 77 76 679 694 748 597 605 2019 2020 2021 2022 2023 2019 202
Slide 28: AXA XL Insurance
4 AXA XL Insurance Scott Gunter, CEO AXA XL Rainer Schoellhammer, CFO AXA XL
Slide 29: Attractive and profitable P&C Large Commercial and Specialty risk market
Attractive and profitable P&C Large Commercial and Specialty risk market AXA XL Roundtable Focus on AXA XL Insurance High-quality and diversified business following successful turnaround Clear and credible growth strategy across all geographies Scott Gunter CEO of AXA XL Confident in maintaining str
Slide 30: P&C commercial lines: a growing and profitable market
P&C commercial lines: a growing and profitable market Global P&C commercial insurance premiums Structural growing demand from large corporates in USD billion1 Dynamic market with growth >3pts above GDP Growing demand for new risks (e.g., energy transition, cyber & Nat Cat) CAGR +6% 810 890 930 640 6
Slide 31: Attractive business following in-depth transformation
Attractive business following in-depth transformation Active portfolio re-underwriting Cumulative price +47% between AXA XL undiscounted Significant repricing and exit of unprofitable lines change1 2020-2023 combined ratio based on Gross Earned Premium NA2 Excess Casualty 112.2% Line-sizing to reduc
Slide 32: Diversified portfolio driven by rebalanced mix and better risk selection
Diversified portfolio driven by rebalanced mix and better risk selection AXA XL Insurance: diversified revenue mix Combined ratio by region2 based on 1H24 gross earned premium by line of business by geography by distribution channel FY23 GWP FY23 GWP FY23 GWP 100% $17bn $17bn $17bn 80% 60% 40% Prope
Slide 33: Clear growth strategy across geographies
Clear growth strategy across geographies Execution on Americas UK & Lloyd’s APAC & Europe existing client $8bn GWP1 $3bn GWP1 $6bn GWP1 segments and product Leading and diversified Top quartile player, Top 3 player in Western capabilities large Commercial player across wholesale & retail Europe and
Slide 34: Confident in maintaining profitability through the cycle
Confident in maintaining profitability through the cycle 1H24 GWP growth and renewal pricing Focused on profitability with strict underwriting for select Lines of Business discipline to ensure adequate risk-return Renewal pricing (%) NA Property 12 Prudent reserving aligned with Group practice 10 NA
Slide 35: Building a track record of sustainable delivery
Building a track record of sustainable delivery Gross written premiums1 Underlying earnings Ordinary cash remittance ratio in EUR billion in EUR million 18.7 18.5 18.8 19.2 18.4 CAGR 1,895 78% at constant FX incl. €-1.7bn Covid impact 1,165 1,210 60% 14.1 13.7 14.0 15.9 507 16.0 +2% 4.5 4.7 4.6 3.2
Slide 36: Appendices
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Slide 37: Effectively managing social inflation risk
Effectively managing social inflation risk North America Excess Casualty Adverse development cover (ADC) put in place for AXA XL legacy Insurance average limit reduction long-tail lines reserves for 2019 and prior years -30% $20m $14m $1bn ADC1 $1bn ADC1 ▪ ca.56% of the subject reserves have $6bn be
Slide 38: Thank you
THANK YOU
Slide 39: Scope
Scope ▪ France: includes insurance activities, banking activities and holding. ▪ Europe: includes Switzerland (insurance activities), Germany (insurance activities and holding), Belgium (insurance activities and holding) and Luxemburg (insurance activities and holding), United Kingdom and Ireland (i
Slide 40: Glossary
Glossary ▪ Capital management policy: subject to annual Board and Shareholders’ Annual General Meeting approvals and absent (1) for share buy-backs, any significant earnings event (i.e., significant deviation in the Group’s UE) and (2) for dividends, the occurrence of a significant capital event (i.