Axa Sa · EURONEXT:CS
Axa Sa — FY2011 Earnings Presentation
54 slides from Axa Sa's earnings presentation, Feb 16, 2012
Slide 1: Full Year 2011 Earnings
Full Year 2011 Earnings Press conference February 16, 2012
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: Table of contents
Table of contents 2011 key highlights Page 3 Henri de Castries, Chairman and Chief Executive Officer 2011 performance Page 15 Denis Duverne, Deputy Chief Executive Officer, Jacques de Vaucleroy and Jean-Laurent Granier, Members of the Management Committee Concluding remarks Page 48 Henri de Castries
Slide 4: Facing an uncertain world
Facing 2011 an uncertain world Æ Eurozone crisis Æ Economic growth slowdown Æ US Congress debt-ceiling Æ Japanese earthquake Æ Arab spring 4 – AXA FY11 Earnings – February 16, 2012
Slide 5: Delivering performance
Delivering 2011 performance €3,731m €3,901m Underlying Earnings FY10 FY11 €4,324m €2,749m Net Income FY10 FY11 €0.69 €0.69 Dividend per share FY10 FY11 5 – AXA FY11 Earnings – February 16, 2012
Slide 6: Being there for our clients
Being there 2011 for our clients exceeded the 100 101 million client milestone paid €18bn P&C 18 claims to our clients Customer Scope shows further improvement in customer satisfaction 79% Top Global Insurance 1st Brand for the third year in a row 6 – AXA FY11 Earnings – February 16, 2012
Slide 7: Working as a team
Working 2011 as a team Employee Scope: high and stable level of engagement of AXA teams 74% AXA is the first financial services group to have signed a European agreement on anticipating changes 1st with social partners Following the 2011 Shareplan, 7.4 AXA’s employees hold ~7.4% of the capital 7 – A
Slide 8: Acting for the long term
Acting 2011 for the long term Significant improvement +4 of AXA’s score within the DowJones Sustainability Index 26 pts above the sector average €23m distributed by the AXA Research Fund to support risk knowledge 23 5 countries targeted to launch a Disaster Risk Reduction program with CARE 5 8 – AXA
Slide 9: Launching Ambition AXA
Launching 2011 Ambition AXA Æ Employee trust and achievement Æ Customer centricity Æ Selectivity Æ Efficiency Æ Acceleration 9 – AXA FY11 Earnings – February 16, 2012
Slide 10: Staying the Ambition AXA course: Selectivity
2011: Staying the Ambition AXA course SELECTIVITY 1. Strong improvement in new business profitability Life & Savings General Protection Unit- Total Life Account & Health Linked & Savings Savings New Business +13% -3% -20% -1% Improvement in profitability thanks to a Sales selective approach with a f
Slide 11: Staying the Ambition AXA course: Efficiency
2011: Staying the Ambition AXA course EFFICIENCY 2. Focus on operational efficiency Reducing costs In Euro billion 1.2 1.5 Well on-track on our productivity gain objectives… 0.3 2011 2012E-2015E 2011-2015E achievement objective Investing in the future Support functions Operations 33% 44% … while con
Slide 12: Staying the Ambition AXA course: Acceleration
2011: Staying the Ambition AXA course 3. Positive developments in high-growth markets ACCELERATION Active capital reallocation Australia & New Zealand Confirmation of AXA’s agility and Taikang Life stake execution capacity regarding capital redeployment Buy-out of minority Canada interests in Asia L
Slide 13: Confirming our operational and financial solidity
2011: Confirming our operational and financial solidity Diversification Robust balance sheet Asia (excl. Japan) Geographical split of L&S and P&C Underlying Earnings 182% 188% 7% Japan France 8% 27% Northern, FY10 FY11 Central & United States Eastern Europe 7% Solvency I ratio 35% United Kingdom & I
Slide 14: Offering a stable dividend level
Offering a stable dividend level Dividend maintained In Euro per share Resilient business model 0.69 0.69 Strong operating Free Cash Flows Robust balance sheet FY10 FY11 Dividend yield of 7%(1) Pay out ratio of 49%(2) Notes are on page 53 of this document. 14 – AXA FY11 Earnings – February 16, 2012
Slide 15: Table of contents
Table of contents 2011 key highlights Page 3 Henri de Castries, Chairman and Chief Executive Officer 2011 performance Page 15 Denis Duverne, Deputy Chief Executive Officer, Jacques de Vaucleroy and Jean-Laurent Granier, Members of the Management Committee Concluding remarks Page 48 Henri de Castries
Slide 16: 2011 performance
2011 performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet 16 – AXA FY11 Earnings – February 16, 2012
Slide 17: Group earnings: Revenues
Group earnings Revenues Revenues by segment Insurance revenues* by region Comparable Asia (excl. Japan) Direct P&C In Euro million FY10 FY11 basis 3% 3% Japan Life & Savings 56,792 52,431 -4% 7% Northern, France Property & Casualty 25,986 27,046 +3% Central 24% & Eastern Asset Management 3,328 3,269
Slide 18: Group earnings: Underlying earnings
Group earnings Underlying earnings Underlying Earnings by segment Underlying Earnings In Euro million at constant In Euro million FY10 FY11 Forex +2% Life & Savings 2,445 2,267 -9% 3,901 3,731 Property & Casualty 1,553 1,848 +16% Asset Management 269 321 +20% International Insurance 290 276 -6% Bank
Slide 19: Group earnings: Adjusted earnings and Net income
Group earnings Adjusted earnings and Net income Adjusted Earnings -15% In Euro million 4,150 3,589 Mainly impacted by higher impairments, notably on Greek government bonds (€ -387m) FY10 FY11 ROE (1) 11.5% 10.0% Net income In Euro million +49% 4,324 Exceptional gains on the sale of the Canadian oper
Slide 20: Group earnings: Operating free cash-flows
Group earnings Operating free cash-flows Operating free cash-flows (1) In Euro billion +14% 4.2 3.7 Life 1.8 & Savings Strong increase driven by both 1.4 Life & Savings and Property & Casualty Property 2.0 & Casualty 2.1 0.3 Asset Mngt 0.4 FY10 FY11 Change on a reported basis. Notes are on page 53 o
Slide 21: 2011 performance
2011 performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet 21 – AXA FY11 Earnings – February 16, 2012
Slide 22: Life & Savings: Scope overview
Life & Savings Scope overview Global footprint Balanced business mix FY11 New business sales (APE) by business G/A Protection Operations in over 30 countries Unit-Linked & Health # 1 global insurer 32% 38% Over 40 million customers Mutual Funds & other FY11 New business sales (APE) by geograph
Slide 23: Life & Savings: New business sales (APE)
Life & Savings New business sales (APE) Protection & Health Unit-Linked G/A Savings In Euro million In Euro million In Euro million +13% -3% 2,184 -20% 1,802 1,792 1,809 1,437 1,155 FY2010 FY2011 FY2010 FY2011 FY2010 FY2011 NBV Margin NBV Margin NBV Margin 47% 23% 9,121 -4% High-Growth Markets(1) Li
Slide 24: Life & Savings: Focus on high-growth markets
Life & Savings Focus on high-growth markets Contribution to L&S New Contribution to high-growth Business Sales (APE) markets APE by region Turkey, Mexico, Morocco 6% CEE 16% 23% 12% South East Asia, India, China Hong Kong 35% 36% FY10 FY11 Total: € 925 million NBV Margins Contribution to L&S Underly
Slide 25: Life & Savings: Pre-tax underlying earnings by business
Life & Savings Pre-tax underlying earnings by business Protection & G/A Savings Unit-Linked US Variable Health excl. US Variable Annuities In Euro million In Euro million Annuities In Euro million In Euro million +8% 2,240 2,065 +18% +4% 581 511 511 504 147 FY11 FY10 FY11 FY10 FY11 FY10 FY11 FY10 Ex
Slide 26: Life & Savings: Underlying earnings
Life & Savings Underlying earnings Underlying Earnings In Euro million -9% 2,445 2,304 2,267 -2%* FY10 FY10 FY11 excluding scope effects related to the partial sale of the UK business and the AXA APH transaction * Change at constant Forex and scope. 26 – AXA FY11 Earnings – February 16, 2012
Slide 27: Life & Savings: Focus on the US
Life & Savings Focus on the US New Business Sales (APE) Underlying Earnings impacted by 2H11 market deterioration In USD million In USD million -32% +14% 640 989 433 866 Life +40% 345 246 FY10 FY11 Non-GMxB Annuity Going forward… 291 320 +10% Diversification and innovation strategy Retirement show
Slide 28: 2011 performance
2011 performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet 28 – AXA FY11 Earnings – February 16, 2012
Slide 29: Property & Casualty: Scope overview
Property & Casualty Scope overview Global scope Diversified distribution network FY11 Revenues by channel Operations in over 30 countries Agents Over 55 million customers 39% # 4 global insurer # 2 amongst non-local insurers in high- growth markets Direct & other 11% Brokers FY11 Revenues by
Slide 30: Property & Casualty: Revenues
Property & Casualty Revenues P&C Revenues In Euro million +3% 25,986 27,046 FY2010 FY2011 High-Growth Direct Business Net new personal Markets Revenues Revenues contracts +16% +8% +1,522,000 Changes on a comparable basis. 30 – AXA FY11 Earnings – February 16, 2012
Slide 31: Property & Casualty: Revenues by line
Property & Casualty Revenues Personal lines Commercial lines In Euro million +4% In Euro million +3% 16,073 16,309 9,714 10,535 FY10 FY11 FY10 FY11 Going forward… Enhance global technical management of retail and commercial portfolios Build a global Direct platform Accelerate franchise in high
Slide 32: Property & Casualty: Focus on high-growth markets
Property & Casualty Focus on high-growth markets Contribution to P&C Revenues Improved profitability High-growth markets -1.1pts 12% Direct 8% 99.3% 98.2% FY10 FY11 2011 P&C revenues: €27 bn High-growth markets Combined Ratio Contribution to P&C net new personal contracts -2.8pts High-growth markets
Slide 33: Property & Casualty: Combined ratio
Property & Casualty Combined ratio FY10 Combined Ratio FY11 Combined Ratio: Improved 99.5% 97.9% o/w o/w Nat Cat 1.7% Nat Cat 0.7% - 3.1% -1.7% Loss Loss 74.8% 72.6% Ratio Ratio 98.6% 98.6% Expense Expense 27.8% 27.0% Ratio Ratio Current Year Favorable Prior Current Year Favorable Prior Combined Yea
Slide 34: Property & Casualty: Underlying earnings
Property & Casualty Underlying earnings P&C Underlying Earnings In Euro million +16% 1,848 Change at 1,553 Underlying earnings FY11 constant by country/region in € million forex France 496 +17% United Kingdom & Ireland 211 +116% NORCEE 807 +5% MedLA 353 -3% Asia 13 n/a Direct -33 -46% FY10 FY11 Chan
Slide 35: Property & Casualty: Focus on Large risks
Property & Casualty Focus on Large risks Revenues In Euro million +3% 1,931 1,986 Large risk insurance and specialty (marine, aviation, space) for corporate clients FY10 FY11 Underlying earnings # 3 European player In Euro million -7% 161 Presence in 90 countries 150 FY10 FY11 Combined Ratio: 97.9%
Slide 36: 2011 performance
2011 performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet 36 – AXA FY11 Earnings – February 16, 2012
Slide 37: Asset Management: Scope overview
Asset Management Scope overview Complementary business models AXA insurance companies as key clients; Mostly third party: institutional, retail and Client mix successful diversification through third party private clients Ability to deliver relevant investment solutions based on: Focus on US,
Slide 38: Asset Management: Assets under management roll-forward
Asset Management Assets under management roll-forward Average Assets Under Management roll-forward In Euro billion Assets under management FY10 FY11 in € billion AXA IM Third party 176 169 Assets managed for AXA 340 343 Total 516 512 878 (1) (28) AllianceBernstein 9 847 Third Party 284 264 (10) Asse
Slide 39: Asset Management: Focus on AXA IM
Asset Management Focus on AXA IM FY11 Net flows Euro -1 bn The return to a position of quasi-equilibrium in terms of Net New Money is due to: Split by expertise Strong flows into AXA IM’s joint In Euro billion venture businesses in Asia Inflows picked up by AXA IM’s +4 alternative and judgment
Slide 40: Asset Management: Focus on AllianceBernstein
Asset Management Focus on AllianceBernstein FY11 Net flows Euro -28bn Split by expertise In Euro billion +22 Progress in the long-term strategy of improving investment performance +4 Diversify business across channels, Equity investment services and geographies Fixed Alternatives & Develop inn
Slide 41: Asset Management: Underlying earnings
Asset Management Underlying earnings Underlying Earnings In Euro million +20% 321 269 Underlying earnings FY11 Change per asset manager in € million AXA Investment Managers 215 +69% AllianceBernstein 106 -23% FY10 FY11 Changes at constant Forex. 41 – AXA FY11 Earnings – February 16, 2012
Slide 42: 2011 performance
2011 performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet 42 – AXA FY11 Earnings – February 16, 2012
Slide 43: Balance sheet: Key indicators
Balance sheet Key indicators 49.7 48.6 Shareholders’ Notably reflects the impact of the AXA APH transaction and lower net equity unrealized capital gains In Euro billion FY10 FY11 182% 188% Solvency I Mainly driven by sustainable and ratio growing underlying earnings FY10 FY11 178% Impact of Eurozon
Slide 44: Balance sheet: General Account invested assets
Balance sheet General Account invested assets Total Insurance Invested Assets Listed Equities Changes in asset allocation 3% Cash Real Estate • Net inflows and investment income: invested 6% 5% mainly in fixed income Alternative Investments(2) • Mark to market: government bonds assets 3% benefiting
Slide 45: Balance sheet: Focus on net unrealized capital gains
Balance sheet Focus on net unrealized capital gains Balance sheet net unrealized Off balance sheet net capital gains1 unrealized capital gains In Euro billion In Euro billion 6.6 Equities 5.1 3.1 0.9 Corporate bonds 2.9 3.2 1.4 1.1 Government bonds Real estate and loans2 2.3 3.1 FY10 FY11 FY10 FY11
Slide 46: Balance sheet: Exposure to European peripheral countries
Balance sheet Focus on exposure to European peripheral countries Exposure to Eurozone peripheral countries Greek Government bond impairment Gross market value in % of General Euro 92 million in 1H11 based on mark to market of Account maturities ≤ 2020 Italy 3.0% Spain 1.7% Euro 295 million in 2H
Slide 47: Focus on Ambition AXA financial targets
2011 performance Focus on Ambition AXA financial targets Underlying Earnings per share Group operating Free Cash Flows In Euro per share In Euro billion +4% +14% Ambition AXA 1.57 1.57 Ambition AXA 4.2 1.51 2011-2015 2010-2015 CAGR 3.7 cumulative +10% Euro 24 billion FY10 FY10 FY11 Published Restate
Slide 48: Table of contents
Table of contents 2011 key highlights Page 3 Henri de Castries, Chairman and Chief Executive Officer 2011 performance Page 15 Denis Duverne, Deputy Chief Executive Officer, Jacques de Vaucleroy and Jean-Laurent Granier, Members of the Management Committee Concluding remarks Page 48 Henri de Castries
Slide 49: Going forward
Going forward Maintain agility to deliver on Ambition AXA strategic priorities in the current environment, with a strong focus on balance sheet strength and cash flow management Trust and achievement Selectivity Efficiency Acceleration Customer centricity The Board of Directors wishes to associate A
Slide 50: Q&A session
Q&A session Q&A session 50 – AXA FY11 Earnings – February 16, 2012
Slide 51: 2011 key figures
2011 key figures in € million unless otherwise noted FY10 FY11 Change Change on a reported basis on a comparable basis GROUP: KEY FIGURES Total revenues 89,412 86,107 -4% -2% Underlying Earnings 3,731 3,901 +5% +2% Underlying Earnings per share (in €) 1.51 1.57 +4% Adjusted Earnings 4,150 3,589 -14%
Slide 52: SRI ratings
SRI ratings See also www.axa.com/en/responsibility/sri 52 – AXA FY11 Earnings – February 16, 2012
Slide 53: Notes
Notes Page 10 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. Page 12 1. In Property & Casualty, high-growth markets are: Morocco, Mexico, Turkey, Gulf, Hong-K
Slide 54: Definitions
Definitions 2011 financial statements are subject to completion of audit procedures by AXA’s independent auditors. AXA's FY11 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at December 31, 2011. Adjusted earnings, underlying