Axa Sa · EURONEXT:CS
Axa Sa — H1 2009 Earnings Presentation
15 slides from Axa Sa's earnings presentation, Aug 5, 2009
Slide 1: Half Year 2009 Earnings
Half Year 2009 Earnings August 5, 2009 Media Presentation
Slide 2: Today's key messages
Today’s key messages “Our confidence in AXA’s strategy is supported by a solid 1H09 performance ” Significant increase in Underlying Earnings, Earnings recovery in 1H09 versus 2H08 9 Adjusted Earnings and Net Income Confirmation of financial strength 9 Solvency I up and debt gearing down Positive in
Slide 3: Insurance revenues by region
Insurance revenues by region Insurance revenues* by region In Euro billion France È 6% North €20bn 11 America Mediterranean €15bn 6 È -25% & LA region €11bn 6 È -0% Asia-Pacific €8bn 5 (incl. Japan) È -2% €22bn 13 3 €8bn NORCEE UK &Ireland È È -3% -11% È All changes are on a comparable basis * Exclu
Slide 4: Underlying Earnings: increased vs. 2H08
Underlying Earnings: increased vs. 2H08 Benefiting from rebound in Life & Savings Key drivers of change in Underlying Earnings Underlying Earnings In Euro million -26% In Euro million 1H08 2H08 1H09 2,766 +63% Life & Savings 1,396 112 1,232 2,116 Property & Casualty 1,133 1,261 986 1,278 Asset Manag
Slide 5: Focus on the US: Turnaround in Variable Annuity margins
Focus on the US Turnaround in Variable Annuity margins US Underlying Earnings GMxB hedge margin analysis In Euro million (net of tax and DAC) 1H08 2H08 1H09 In Euro million Basis -44 -203 -8 -28% Volatility -10 -173 -69 Credit Spreads 0 -84 36 326 Interest rates & other -10 69 40 271 Total -64 -391
Slide 6: Adjusted Earnings: Increased vs. 2H08
Adjusted Earnings: Increased vs. 2H08 Benefiting from higher realized capital gains and lower impairments net of hedges Adjusted Earnings Net realized capital gains/losses In Euro million -50% In Euro million 1H08 2H08 1H09 3,290 xxx +327% Underlying Earnings 2,766 1,278 2,116 1,736 Net realized cap
Slide 7: Net income: Increased vs. 2H08
Net income: Increased vs. 2H08 Benefiting from credit spread tightening Net income Key drivers of change in Net income In Euro million In Euro million 1H08 2H08 1H09 -38% Adjusted Earnings 3,290 409 1,736 2,162 1,323 Change in fair value -1,012 -1,720 -280 Of which impact from credit spreads 309 Of
Slide 8: Solvency I: Improved vs. FY08
Solvency I Improved vs. FY08 Solvency I ratio at 133% Key drivers of change in Solvency I + • Underlying Earnings contribution +10pts 127% 133% Surplus 6 7 - • Financial market impact & other -4pts Solvency II ratio (Based on QIS4 methodology) Requirements 22 22 ca. 155% 146% FY08 1H09 FY08 1H09 8 –
Slide 9: Shareholders' equity: Up €1.4 billion to €38.8 billion
Shareholders’ equity Up €1.4 billion to €38.8 billion Key drivers of change in Shareholders’ equity In Euro billion shareholders’ equity 37.4 38.8 +• Net income €+1.3 billion +• Variation of unrealized gains €+0.9 billion -• Dividend €-0.8 billion -• FX and others €-0.1 billion FY08 1H09 Balance she
Slide 10: Net financial debt: Down €2.0 billion to €15.6 billion
Net financial debt Down €2.0 billion to €15.6 billion Net financial debt Debt ratios In Euro billion 17.7 15.6 FY08 1H09 1H09 decrease vs. FY08 (Euro 7.4 2.0 billion) partly due to seasonality effect allowing for 7.4 a reduction in short term senior Debt 35% 31% debt (commercial paper). Gearing(3) P
Slide 11: General Account asset portfolio
General Account asset portfolio Economic view based on market value (97% level 1 & 2) Changes in asset allocation Invested assets (100%) FY08 % 1H09 % In Euro billion Asset movements: Fixed income 300 77% 310 79% Increased investments in Govies (Euro +10 billion) notably benefiting from reduced o/
Slide 12: We are managing the market turmoil efficiently
We are managing the market turmoil efficiently and we are prepared to withstand a further possible market downturn Insurance sector and AXA were not immune to the adverse market environment. However AXA demonstrated its capacity to act quickly and take necessary actions, in order to: Preserve a soli
Slide 13: We are well positioned to benefit from a market upturn
We are well positioned to benefit from a market upturn We offer a well balanced business portfolio with not only defensive but also growth oriented characteristics • Property & Casualty, Protection, Health • Investment & Savings, Asset Management We are well positioned • Focused approach and consist
Slide 14: Notes
Notes Page 4 (1) Change on a comparable basis corresponds to: Vs. 1H08: at constant 1H08 average exchange rates Vs. 2H08: at constant FY08 average exchange rates Page 6 (1) Return corresponds to adjusted earnings net of interest charges on perpetual debt. Equity corresponds to average shareholders’
Slide 15: Cautionary note concerning forward-looking statements
Cautionary note concerning forward-looking statements Certain comments 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 beca