Slide 1: FY17 Earnings
FY17 Earnings February 22, 2018
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. FY17 Business performance A.15 Gérald Harlin, Deputy CEO & Group CFO 3. FY17 Financial performance A.23 Gérald Harlin, Deputy CEO & Group CFO 4. Concluding remarks A.37 Thomas Buberl, Group CEO A3 Full Year 2017 Earnings
Slide 4: Introduction & highlights
Introduction & highlights 1 Thomas Buberl, Group CEO
Slide 5: Key takeaways
Key takeaways Strong earnings growth fueling a significant uplift in dividend All five geographies contributing to growth in underlying earnings Our focus on profitable growth is driving excellent results Strong and reliable capital position and cash generation capacity Innovating in Health and lead
Slide 6: Ambition 2020 – Delivering on the upper end of the target range
Ambition 2020 – Delivering on the upper end of the target range Underlying earnings per share Free cash flows2 In Euro In Euro billion +7% Ambition Ambition +4% 6.2 6.3 2020 2020 2.24 2.40 2.16 3% - 7% 28 - 32 Euro billion UEPS CAGR1 cumulative FCF 2015-2020 2015-2020 FY15 FY16 FY17 FY16 FY17 Adjust
Slide 7: Strong earnings growth at the top of the Ambition 2020 target range
Strong earnings growth at the top of the Ambition 2020 target range Underlying earnings1 Underlying earnings per share In Euro billion In Euro +7.3% +7.5% 2.40 6.0 2.24 5.7 FY16 FY17 FY16 FY17 A7 Full Year 2017 Earnings | February 22, 2018 All notes are on pages 44 and 45 Back to agenda Change at co
Slide 8: Adjusted earnings and net income at historically high levels
Adjusted earnings and net income at historically high levels Adjusted earnings1 Net income In Euro billion In Euro billion +7.6% +8.5% 6.5 6.2 6.1 5.8 FY16 FY17 FY16 FY17 A8 Full Year 2017 Earnings | February 22, 2018 All notes are on pages 44 and 45 Back to agenda Change at constant FX
Slide 9: Uplift in dividend fueled by earnings growth and increased payout
Uplift in dividend fueled by earnings growth and increased payout Adjusted earnings per share Dividend per share In Euro In Euro +7.6% +8.6% 2.59 1.26 2.41 1.16 FY16 FY17 55% Payout ratio 49% guidance1 45%-55% 48% 45% FY16 FY17 A9 Full Year 2017 Earnings | February 22, 2018 All notes are on pages 44
Slide 10: All five geographies contributing to growth in earnings
All five geographies contributing to growth in earnings FY17 underlying FY17 underlying earnings (Euro billion) earnings growth ✓ Top 3 position in L&S, P&C and Health France 1.4 +3% ✓ Innovation leader shaping the insurance market ✓ Distribution powerhouse with blended channels ✓ Strongholds in P&C
Slide 11: Excellent and still increasing NBV margin
Excellent and still increasing NBV margin FY17 NBV margin1 Market leading business mix 43.1% (+3.5 pts) 20% G/A Savings 32% Protection 10% Euro 6.5 billion Mutual funds & other FY17 NBV1 +8% Euro 2.8 billion 25% Unit-Linked 13% Health FY17 APE1 split by product type A11 Full Year 2017 Earnings | Feb
Slide 12: Improvement in profitability ratios across the board
Improvement in profitability ratios across the board P&C Protection Health CY combined ratio Combined ratio Combined ratio 97.6% 96.9% 94.7% (-0.1 pt) (-0.2 pt) (-0.3 pt) Strong technical discipline driving profitability A12 Full Year 2017 Earnings | February 22, 2018 Back to agenda Change at consta
Slide 13: Health | Fast-growing, profitable business and a key area for innovation
Health | Fast-growing, profitable business and a key area for innovation Gross revenues In Euro billion 12 | +6% Serving 500+ mid/large-size employers with over 1 million lives covered Underlying earnings In Euro million – Integrated digital platform +11% – Full set of health benefits administration
Slide 14: Leading the way as a responsible and sustainable insurer
Leading the way as a responsible and sustainable insurer 3 Billion Euros of additional divestments from carbon-intensive energy producers x4 Green investments commitment by 2020, twice as high as COP21 recommendation 5 years thought leadership initiative to improve governance, curb emissions and rel
Slide 15: Ambition 2020 – Delivering on the upper end of the target range
Ambition 2020 – Delivering on the upper end of the target range Underlying earnings per share Free cash flows2 In Euro In Euro billion +7% Ambition Ambition +4% 6.2 6.3 2020 2020 2.24 2.40 2.16 3% - 7% 28 - 32 Euro billion UEPS CAGR1 cumulative FCF 2015-2020 2015-2020 FY15 FY16 FY17 FY16 FY17 Adjust
Slide 16: FY17 Business performance
FY17 Business performance 2 Gérald Harlin, Deputy CEO & Group CFO
Slide 17: Underlying earnings
Underlying earnings In Euro million Underlying earnings Underlying earnings by geography +7% FY16 FY17 Change restated 6,002 5,688 France 1,385 1,429 +3% Europe 2,305 2,326 +2% Asia 1,047 1,089 +7% United States 998 1,135 +16% International 288 337 +20% Transversal & central holdings -335 -313 +8% U
Slide 18: France | Growth fueled by technical strength and leading market positions
France | Growth fueled by technical strength and leading market positions Underlying earnings Market leader focused on profitability In Euro million +3% P&C CoR Health CoR NBV margin 1,385 1,429 94.6% 98.7% 34.5% (-0.4 pt) (stable) (+3 pts) + Higher Unit-Linked fees L&S + Lower loss ratio in Protect
Slide 19: Europe | Strong technical results and growth in preferred segments
Europe | Strong technical results and growth in preferred segments Underlying earnings Highly profitable business… In Euro million +2% P&C CoR Health CoR NBV margin 2,305 2,326 94.6% 96.1% 56.6% Italy (-0.5 pt) (-0.2 pt) (+8 pts) Spain UK & + Higher technical margins notably in Ireland Belgium and G
Slide 20: Asia | Strong profitability in highly competitive markets
Asia | Strong profitability in highly competitive markets Underlying earnings Strong and improving profitability… In Euro million +7% P&C CoR Health CoR NBV margin 1,047 1,089 97.6% 78.3% 70.6% (-0.2 pt) (-0.9 pt) (+6 pts) + Lower expenses in Japan, Japan including lower pension costs …from growing
Slide 21: United States | Growth across all businesses
United States | Growth across all businesses Underlying earnings Growth in Life & Savings… In Euro million +16% NBV APE NBV margin 1,135 +14% +6% 23.4% 998 Euro 0.4 billion Euro 1.8 billion (+2 pts) + Higher Unit-Linked management fees + Higher GMxB hedge margin …and improving mix in Asset Managemen
Slide 22: International | Building for growth and managing for profits
International | Building for growth and managing for profits Underlying earnings Improving profitability… In Euro million +20% P&C CoR Health CoR NBV margin 337 101.4% 101.6% 28.0% (+0.3 pt (-1.2 pts) (+6 pts) 288 o/w +1.5 pts nat cat) + Higher investment income and …with pace and discipline improve
Slide 23: AXA IM | Improved operating performance and strong growth in earnings
AXA IM | Improved operating performance and strong growth in earnings Underlying earnings Growing volumes… In Euro million +16% Euro 8 billion 257 net inflows o/w Euro 9 billion in third party 225 + Higher management fees …and improving cost income ratio + Improved cost income ratio 72.4% + Improved
Slide 24: FY17 Financial performance
FY17 Financial performance 3 Gérald Harlin, Deputy CEO & Group CFO
Slide 25: Group earnings / Balance sheet
Group earnings Balance sheet A25 Full Year 2017 Earnings | February 22, 2018 Back to agenda
Slide 26: Underlying earnings
Underlying earnings In Euro million Underlying earnings Underlying earnings by geography +7% FY16 FY17 Change restated 6,002 5,688 France 1,385 1,429 +3% Europe 2,305 2,326 +2% Asia 1,047 1,089 +7% United States 998 1,135 +16% International 288 337 +20% Transversal & central holdings -335 -313 +8% U
Slide 27: Adjusted earnings
Adjusted earnings In Euro million Adjusted earnings Details of adjusted earnings +8% FY16 FY17 6,457 6,103 Underlying earnings 5,688 6,002 Net realised capital gains/losses 415 455 o/w realised capital gains 880 674 o/w net impairments -395 -127 o/w hedging of equity portfolio -70 -92 Adjusted earni
Slide 28: Net income
Net income In Euro million Net income Details of net income +8% FY16 FY17 6,209 Adjusted earnings 6,103 6,457 5,829 Change in fair value and Forex -118 -134 o/w gains/losses on economic hedges1 -158 -357 o/w change in fair value of assets accounted for as fair value option 40 222 Exceptional and dis
Slide 29: Group | Underlying earnings by geography and details by business line
Group | Underlying earnings by geography and details by business line Underlying earnings 1 o/w o/w o/w o/w Asset Total (In Euro million) Life & Savings Property & Casualty Health Management FY17 Change FY17 Change FY17 Change FY17 Change FY17 Change France 1,429 +3% 765 +8% 608 -2% 69 +3% - - Europ
Slide 30: Improvement in profitability ratios across the board
Improvement in profitability ratios across the board P&C combined ratio – details Health combined ratio 94.7% Current year Prior year reserve All-year combined ratio + developments combined ratio (-0.3 pt) 97.7% 97.6% 96.4% 96.3% 0.5% 0.7% -1.3% -1.2% P&C all-year combined ratio 96.3% (stable) FY16
Slide 31: Well on track towards our cost savings Ambition
Well on track towards our cost savings Ambition In Euro billion 2.1 Euro 0.3 billion1 from leaner central functions will be phased in over FY18 and FY19 Ambition 2020 0.5 +3% 0.3 contribution to 2015 – 2020E UEPS CAGR FY16 FY17 FY20 Plan from cost savings A31 Full Year 2017 Earnings | February 22, 2
Slide 32: Group earnings / Balance sheet
Group earnings Balance sheet A32 Full Year 2017 Earnings | February 22, 2018 Back to agenda
Slide 33: High quality investment portfolio and resilient yield
High quality investment portfolio and resilient yield FY17 Total General Account invested assets FY17 New fixed income investments 82% in Fixed Income with long duration (8.2 years) 40% BIG credit (8%) Govies & related 18% Euro ABS (~9%) Euro ~56% Other1 575 70 Investment grade credit billion3 34% ~
Slide 34: Robust investment margin and yields – ahead of Ambition 2020 guidance
Robust investment margin and yields – ahead of Ambition 2020 guidance Spread above guaranteed rates1 L&S investment margin1 P&C yield2 -12 bps Average 73 bps Yield on Spread above 69 bps 3.4% FY17 guaranteed 3.3% assets guarantee rates Inforce 3.1% 1.8% +130 bps New business 2.1% 0.3% +180 bps • Sig
Slide 35: Shareholders’ equity
Shareholders’ equity In Euro billion 70.6 69.6 FY17 vs. FY16 + Net income for the period +6.2 + Change in net unrealized capital gains +1.4 + Change in pension benefits +0.4 - Forex and other -4.8 - Subordinated debt (incl. interest charges) -0.6 - Share buyback -0.9 - Dividends -2.8 FY16 FY17 Adjus
Slide 36: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion Ratio as of December 31, 2017 205% 197% 205% Interest rate +50bps 207% +2 pts 57.9 57.8 Interest rate -50bps 199% -6 pts 29.4 28.2 Corporate spreads +75bps 203% -2 pts Available capital Required capital Equity markets +25% 205% 0
Slide 37: Strong cash flow generation and remittance
Strong cash flow generation and remittance In Euro billion Remittance ratio 88% 78% in line with our guidance of 75% - 85% 6.2 6.3 5.4 4.9 Operating free cash flows Cash remitted from entities FY16 FY17 A37 Full Year 2017 Earnings | February 22, 2018 Back to agenda
Slide 38: Concluding remarks
Concluding remarks 4 Thomas Buberl, Group CEO
Slide 39: Key takeaways
Key takeaways Strong earnings growth fueling a significant uplift in dividend All five geographies contributing to growth in underlying earnings Our focus on profitable growth is driving excellent results Strong and reliable capital position and cash generation capacity Innovating in Health and lead
Slide 40: Q&A
Q&A
Slide 41: AXA Investor Relations | Keep in touch
AXA Investor Relations | Keep in touch Call us Meet our management Investor Relations +33 1 40 75 48 42 March 20-21 Morgan Stanley European Financials Conference London Andrew Wallace-Barnett +33 1 40 75 46 85 Head of Investor Relations +33 1 40 75 39 82 April 10 HSBC West Coast Financials Conferenc
Slide 42: Thank You
Thank You
Slide 43: Scope
Scope FY16 has been restated to reflect the new reporting which is aligned with the new operating model and organization announced on November 13, 2017. ▪ France: includes insurance activities, banking and holdings activities in France. ▪ Europe: includes Belgium (insurance activities and holdings),
Slide 44: Notes (1/2)
Notes (1/2) Page A6 1. Compound annual growth rate 2. Adjusted RoE and free cash flows are non-GAAP financial measures. For further information, please refer to the reconciliation of adjusted ROE to the financial statements and its definition in the Glossary, which are provided in AXA’s 2017 Activit
Slide 45: Notes (2/2)
Notes (2/2) Page A21 1. Includes Euro -0.1 billion mortality model update in 1H17, a Euro +0.1 billion mortality model update in 2H17 and a Euro -0.1 billion GMxB model update in 2H17 Page A28 1. Interest rate and foreign exchange economic hedges not eligible for hedge accounting under IAS 39 Page A
Slide 46: Full Year 2017 Appendices
Full Year 2017 Appendices February 22, 2018
Slide 47: 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 48: Table of contents
Table of contents 1. GROUP OVERVIEW B.4 2. GEOGRAPHIES B.10 3. PROFITABILITY ANALYSIS B.26 4. BALANCE SHEET B.36 5. CORPORATE RESPONSIBILITY B.64 6. PRO-FORMA REPORTING SCOPE B.67 B3 Full Year 2017 Earnings l Appendices l February 22, 2018
Slide 49: B1 Group overview
B1 Group overview
Slide 50: Revenues and underlying earnings by geography
Revenues and underlying earnings by geography FY17 figures Revenues by geography Underlying earnings by geography Transversal1 5% Transversal1 6% International 7% International 5% France 21% France 25% US 17% US 17% Euro 99 billion Euro 6.0 billion2 Asia 9% Europe 37% Europe 35% Asia 16% 1. Includin
Slide 51: AXA’s rankings
AXA’s rankings FY17 figures1 Current engines High potentials #3 France #13 Spain #15 China #4 Thailand #2 Switzerland #14 Japan #2 Indonesia #2 Philippines3 L&S #8 Germany #6 Hong Kong L&S #3 Belgium #3 US (VA2) #9 Mexico #6 Italy #2 France #1 Ireland #20 Brazil #16 Thailand #1 Switzerland #6 Italy
Slide 52: Revenues and underlying earnings by line of business
Revenues and underlying earnings by line of business FY17 figures Revenues by line of business Underlying earnings by line of business Asset management 4% Other1 1% Asset management 8% Other1 1% Health 8% Health 13% Euro 99 billion L&S 51% Euro 6.0 billion2 L&S 48% P&C 35% P&C 32% 1. Other correspon
Slide 53: Life & Savings | Distribution and product mix
Life & Savings | Distribution and product mix FY17 APE including life-like Health APE by channel APE by product Other 7% Funds & Other 10% Partnerships 20% Protection 32% Agents & salaried Unit-Linked 25% Euro 6,470 million Euro 6,470 million sales force 54% Brokers – IFAs & others 19% Health 13% G/
Slide 54: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix FY17 revenues excluding Health Revenues by channel Revenues by product Other 3% Direct 10% Partnerships 8% Non-Motor 57% Agents 35% Euro 31.8 billion Euro 31.8 billion Motor 43% Brokers – IFAs & others 44% B9 Full Year 2017 Earnings l Appendices l F
Slide 55: B2 Geographies
B2 Geographies
Slide 56: France | Topline overview
France | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion -1% +14% +1% 1,350 1,331 3,877 7.3 7.3 3,404 Protection 399 387 Commercial lines 3.2 +1% 3.1 G/A Savings 518 558 Revenues Personal 0% 4.1 4.2 lines Unit-Linked 332 387 Funds
Slide 57: France | Profitability analysis
France | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -1.4 pts 0.0 pt -0.4 pt 96.9% 95.6% 98.7% 98.7% 95.0% 94.6% Loss ratio 74.8% 71.1% Loss ratio 68.5% 67.5% Loss ratio 81.2% 80.7% Expense ratio 22.1% 24.4% Expense ratio 26.5% 27.1% Expense ratio 17.5%
Slide 58: Europe | Topline overview
Europe | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +4% +1% -8% 1,015 5,004 5,105 15.7 15.6 926 Commercial Protection 461 lines 5.9 6.1 +3% 415 Revenues G/A Savings 346 268 Personal 9.7 0% lines 9.5 Unit-Linked 177 209 Funds &
Slide 59: Europe | Profitability analysis
Europe | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -1.3 pts -0.2 pt -0.5 pt 98.3% 97.0% 96.3% 96.1% 95.1% 94.6% Loss ratio 67.4% 67.3% Loss ratio 90.9% 90.4% Loss ratio 86.6% 86.9% Expense ratio 27.7% 27.3% Expense ratio Expense ratio 7.4% 6.5% 9.7% 9.
Slide 60: Asia | Topline overview
Asia | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion -7% +2% -1% 1,431 2,041 1,970 1.3 1.3 1,291 Commercial 0.2 +3% lines 0.2 Protection 935 932 Revenues Personal 1.2 1.2 lines -2% G/A Savings 471 Unit-Linked 343 25 16 FY16 FY17
Slide 61: Asia | Profitability analysis
Asia | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.8 pt -0.9 pt -0.2 pt 85.9% 86.7% 79.1% 78.3% 97.7% 97.6% Loss ratio 56.1% 54.6% Loss ratio 73.1% 72.3% Loss ratio 68.9% 72.0% Expense ratio 22.9% 23.7% Expense ratio 24.6% 25.2% Expense ratio 17.1% 14
Slide 62: US | Life & Savings profitability analysis
US | Life & Savings profitability analysis US Variable Annuity GMxB Underlying earnings3 US L&S Underlying earnings3 In Euro million In Euro million +8% 807 852 Net of DAC and tax1 FY163 FY17 Variable Annuity base fees & other, less expenses2 331 309 GMxB hedge margin 13 69 FY16 FY17 Reserve strengt
Slide 63: Group | Topline overview
Group | Topline overview L&S APE Health revenues P&C revenues1 In Euro million (excl. Health) In Euro million In Euro billion -1% +6% +1% 5,772 5,607 11,959 12,403 31.9 31.8 Protection 2,122 2,057 Commercial +2% 15.1 15.1 lines G/A Savings 1,438 1,269 Revenues 0% Personal Unit-Linked 1,549 1,631 16.
Slide 64: Group | Profitability analysis
Group | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.2 pt -0.3 pt 0.0 pt 97.0% 96.9% 94.9% 94.7% 96.4% 96.3% Loss ratio 69.2% 69.0% Loss ratio 80.7% 82.8% Loss ratio 78.8% 78.4% Expense ratio 27.2% 27.3% Expense ratio 16.3% 14.1% Expense ratio 16.2% 16
Slide 65: Group | Underlying earnings by geography and details by business line
Group| Underlying earnings by geography and details by business line Underlying earnings 1 o/w o/w o/w o/w Asset Total (In Euro million) Life & Savings Property & Casualty Health Management FY17 Change FY17 Change FY17 Change FY17 Change FY17 Change France 1,429 +3% 765 +8% 608 -2% 69 +3% - - Europe
Slide 66: Group | Net flows
Group | Net flows FY17 figures L&S: Euro +0.8 billion Health: Euro +3.1 billion P&C NNC: -851k contracts in Euro billion in Euro billion in millions of contracts +2.3 +1.2 0.0 +1.7 +1.0 +1.0 +0.5 -0.1 -0.1 Of which Turkey -0.5 0.0 -1.3 -2.2 -0.2 -0.6 France Europe Asia US International France Europe
Slide 67: L&S and Health | APE, NBV and NBV margin by geography
L&S and Health | APE, NBV and NBV margin by geography FY17 figures FY17 APE by product Total APE NBV NBV margin Change on a Change on a Change on a Mutual funds FY16 FY16 FY16 Protection G/A Savings Unit-Linked Health FY17 comparable FY17 comparable FY17 comparable & other restated restated restated
Slide 68: P&C | Revenues by business line
P&C | Revenues by business line FY17 figures Personal Motor Personal Non-Motor Commercial Motor Commercial Non-Motor Change on Change on Change on Change on In Euro million Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis
Slide 69: P&C | Price effect by geography
P&C | Price effect by geography Personal Lines Commercial Lines Price Revenues Price Revenues In Euro million Revenues effect growth Revenues effect growth 2018 Market pricing trends Increase in prices in personal lines and increased pressure on prices in France 4,168 +1.3% +0.3% 3,139 +2.2% +0.8% c
Slide 70: Asset management | Asset under management rollforward
Asset management | Asset under management rollforward FY17 figures Assets under Management rollforward AXA IM - Fully AXA IM - Asian Joint In Euro billion AB AXA IM Total consolidated scope Ventures AUM at FY16 486 717 607 110 1,203 Net flows 12 8 8 0 +19 Market appreciation 53 21 19 2 +75 Scope & o
Slide 71: B3 Profitability analysis
B3 Profitability analysis
Slide 72: Profitability analysis | Group underlying earnings margin analysis
Profitability analysis | Group underlying earnings margin analysis FY17 Change FY17 Change FY17 Change Investment margin 4,647 -3% Fees & revenues 8,123 +3% Net technical margin 11,929 -1% + + + - Acquisition expenses 10,642 -3% - Administrative expenses 6,256 +2% - VBI amortization 42 -74% 1 + Pre-
Slide 73: Profitability analysis | Group underlying earnings margin analysis by country
Profitability analysis | Group underlying earnings margin analysis by country Transversal & Total France Europe Asia US International holdings and other Margin on 4,885 1,479 954 1,847 284 319 2 revenues Investment 4,647 1,640 1,813 35 543 375 241 margin Management fees 2,811 521 187 106 1,937 53 7
Slide 74: Profitability analysis | L&S underlying earnings margin analysis
Profitability analysis | L&S underlying earnings margin analysis FY17 Change FY17 Change FY17 Change Investment margin 2,476 -4% Fees & revenues 6,609 +3% Net technical margin 763 -40% Average G/A reserves 343,112 +2% o/w Unit-Linked management fees 2,811 +10% o/w Mortality & morbidity margin and ot
Slide 75: Profitability analysis | P&C underlying earnings margin analysis
Profitability analysis | P&C underlying earnings margin analysis FY17 Change FY17 Change Investment income 2,049 -2% Technical margin 9,882 +2% Average assets 2 71,191 +3% Gross earned premium 31,854 +1% Average yield 2,3 2.9% -15 bps AY Loss ratio 69.0% -0.2pt CY Loss ratio 70.2% -0.3pt o/w Nat cat
Slide 76: Profitability analysis | Details on P&C current year loss ratio
Profitability analysis | Details on P&C current year loss ratio Personal Motor Personal Non-Motor 75.0% +1.2pts 61.1% +1.3pts +0.1pt 60.5% 74.0% 0.0pt -0.7pt -0.9pt -1.5pts -1.0pt FY16 Nat Cat Price effect Freq & Sev Other1 FY17 FY16 Nat Cat Price effect Freq & Sev Other1 FY17 Total Commercial lines
Slide 77: Profitability analysis | Focus on P&C reserves
Profitability analysis | Focus on P&C reserves 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% 1.3% 1.2% 0.6% 0.7% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14
Slide 78: Profitability analysis | Health underlying earnings margin analysis
Profitability analysis | Health underlying earnings margin analysis FY17 Change FY17 Change Investment income 121 +6% Technical margin 2,678 +9% Gross earned premium 12,422 +6% AY Loss ratio 78.4% -0.6pt + + - Expenses 2,023 +8% Expense ratio 16.3% +0.3pt Pre-tax underlying earnings 776 +12% - Taxes
Slide 79: Profitability analysis | Asset management underlying earnings margin analysis
Profitability analysis | Asset management underlying earningsExpenses margin analysis In Euro million FY17 Change2 FY17 Change2 Net revenues3 3,734 +9% Asset Management expenses 2,669 +4% Margin1 Distribution revenues 685 +1% Expenses1 Investment result 8 n.a Distribution expenses 721 +8% + - Pre-ta
Slide 80: FY17 Key sensitivities
FY17 Key sensitivities P&L Balance sheet Impairements Change1 in fair value Total impact net Net unrealized capital net of hedges through and Forex through income gains through (incl. impact through Adjusted earnings Net income Shareholders' equity In Euro billion adjusted earnings) -25% -0.4 -0.1 -
Slide 81: B4 Balance Sheet
B4 Balance Sheet
Slide 82: Balance sheet
Balance sheet 1. General Account invested assets B.38 I. Government and corporate bonds by rating B.39 II. Government Bonds and related B.40 III. Corporate Bonds B.41 IV. Asset Backed Securities B.42 V. Listed Equity B.43 VI. Real Estate B.44 VII. Hedge Funds B.45 VIII. Private Equity B.46 IX. Mortg
Slide 83: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY16 % FY17 % In Euro billion Published Changes in asset mix Fixed income 485 83% 474 82% o/w Govies and related 236 40% 232 40% o/w Corporate bonds 202 35% 196 34% Forex: negative o/w Asset backed securities 13 2% 12 2% impact from the 1 apprec
Slide 84: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds1 Below investment Non rated (2%) grade (6%) 12% AAA 17% 27% AAA BBB Euro 196 11% AA 37% Euro 232 billion billion 15% BBB A 39% AA 34% A Average rating maintained in the AA range Average rating maintained in the A r
Slide 85: Government bonds and related
Government bonds and related Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Ireland 2% Other 7% 40.9 Netherlands 2% 36.9 Austria 3% France 20% Supranational Institutions 5% Switzerland 6% Euro 232 billion Spain 6% Japan 13% Belgium 8% US 10% Italy 9% FY16 FY17 Germ
Slide 86: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Technology 3% Other 2% Basic materials 3% Consumer 8.0 Cyclical 6% 7.3 Financials 6% Banks 36% Energy 6% Euro 196 billion Communications 8% Industrials 8% FY16 FY17 Consumer Utilities 9% non-cyclical 15%
Slide 87: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment Non rated/Equity 3% grade 2% BBB 1% CLO 89% A 15% US Subprime, Alt-A & NC RMBS 3% Prime RMBS 3% Euro 12 billion Commercial MBS 1% Euro 12 billion CDO 1% Consumer ABS 1% Other ABS 3% AA 23% AAA 55% 1. Including debt
Slide 88: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Rest of the 4.7 World 13% US 23% Other 3.5 European countries 13% Euro 22 billion UK 3% Switzerland 5% France 22% Belgium 5% Japan 7% FY16 FY17 Germany 8% As of December 31, 2017 1. Gro
Slide 89: Real estate investments
Real estate investments Defensive portfolio with good performance over the long term Breakdown by geography Breakdown by type and geography Japan 1% Other 1% US 3% UK 5% Switzerland Other Eurozone 33% countries 10% Switzerland France Belgium Germany Other Total Office 10% 11% 7% 4% 9% 40% Belgium 9%
Slide 90: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 9 managers Multi-Strategy Relative value credit 9% program Real asset cash flow 13% 31% Market value Alternative Credit Short dated carry 62% Euro 7 billion program Deep value credit 16% 69% Multi-Str
Slide 91: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Other 7% Venture 4% Japan 2% Mezzanine 10% Infrastructure 15% Buy-out 71% US 29% Market value Euro 9 billion Diversified portfolio Europe 62% Direct 44% Funds of funds 56% As of December 31, 2017 B46 Full
Slide 92: Mortgage loans & other
Mortgage loans & other Low risk mortgage loan portfolio FY17 market value by entity1 34% 20% Switzerland Germany Other 7% 46% Residential Switzerland 34% 86% Residential France 10% 54% Commercial 14% Commercial Market value2 28% 10% Euro 33 billion United States France 24% Agricultural 18% Residenti
Slide 93: Focus on net unrealized capital gains
Focus on net unrealized capital gains Balance sheet net unrealized capital gains Off balance sheet net unrealized capital gains In Euro billion In Euro billion 16.0 14.6 1.5 2.5 4.8 2.0 2.0 Equities & other1 4.2 Corporate bonds 11.2 11.5 Government bonds and related FY16 FY17 FY16 FY17 3.4 2.6 2.3 N
Slide 94: Asset & Liability management (1/2)
Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 P&C yield2 -12 bps 73 bps 69 bps 3.4% Average 3.3% Yield on Spread above FY17 guaranteed assets guarantee rates Inforce 3.1% 1.8% +130 bps New business 2.1% 0.3% +180 bps • Significant buffer to cover guarantees
Slide 95: 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 300 bps 60 bps 110 bps 70 bps 130 bps Inforce 3.6% 3.5% 2.9% 1.8% 3.8% 1.1% 2.7% 2.6% 0.6% 1.3% business 180 bps 110 bps 110 bps 90 bps N
Slide 96: Net financial debt – Long-term maturities
Net financial debt – Long-term maturities Net financial debt Contractual maturity breakdown In Euro billion In Euro billion Debt 4.3 26% 25% gearing 0.8 2.8 18.3 16.2 0.4 0.3 3.0 4.6 8.1 2018 2019 2020 2021-2025 2026-2040 Undated 7.4 Economic maturity breakdown 0.8 9.1 In Euro billion 7.7 0.3 4.9 1.
Slide 97: Adjusted ROE
Adjusted ROE In Euro million FY16 FY17 Adjusted earnings 6,103 6,457 Interest charges on undated debt -267 -229 Average adjusted shareholders’ equity 43,352 43,067 Adjusted ROE 13.5% 14.5% B52 Full Year 2017 Earnings l Appendices l February 22, 2018
Slide 98: Solvency II
Solvency II Solvency II ratio Key sensitivities In Euro billion Ratio as of December 31, 2017 205% 197% 205% Interest rate +50bps 207% +2 pts 57.9 57.8 Interest rate -50bps 199% -6 pts 29.4 28.2 Corporate spreads +75bps 203% -2 pts Available capital Required capital Equity markets +25% 205% 0 pt FY1
Slide 99: Strong capital generation…
Strong capital generation… AFR roll-forward In Euro billion o/w proposed dividend Euro -3.0 billion o/w buyback Euro -1.0 billion +1.8 +1.5 +2.5 +4.6 -4.0 -1.9 57.9 Offset in SII ratio by 57.8 reduction in SCR -4.5 Euro 8.5 billion o/w Forex Euro -3.6 billion operating return o/w net debt reduction
Slide 100: …and improved quality of capital
…and improved quality of capital 85% Tier 1 +7pts vs. FY16 ✓ Strong increase in unrestricted Tier 1 (Euro +4.4 billion) o/w Tier 1 from robust operating return debt 13% Euro Tier 2 ✓ Decrease in Tier 2 (Euro -1.2 billion) 57.8 -2pts to 13% following net subordinated debt reduction billion AFR Tier 3
Slide 101: 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 FY17 FY17 FY17 Asset management, Operational Asset Management & Banking Banking & other UK Transversal & Counterparty 6% 4% 5% Holdings & Other Italy &
Slide 102: Shareholders’ equity to Solvency II AFR
Shareholders’ equity to Solvency II AFR In Euro billion IFRS 70 Shareholders’ Equity1 Move to full market value of assets • Real estate (Euro +4.1 billion) Full market value • Loans (Euro +0.2 billion) +5 • Other (Euro +0.4 billion) of assets Remove intangible assets Intangible assets -31 • Goodwill
Slide 103: L&S AFR and NBV | Key sensitivities
L&S AFR and NBV | Key sensitivities L&S AFR sensitivities New Business Value (NBV) sensitivities In Euro billion In Euro million L&S AFR 46.9 NBV as at December 31, 2017 2,787 as at December 31, 2017 Interest rate +50 bps 47.7 +0.8 | +2% Interest rate +50 bps 2,875 +88 | +3% Interest rate -50 bps 45
Slide 104: L&S Internal Rate of Return (IRR) by country
L&S Internal Rate of Return (IRR) by country FY16 restated1 FY17 In Euro million APE NB IRR APE NB IRR France 1,824 21.1% 1,849 22.0% Europe 1,124 21.7% 1,034 20.0% Asia 1,661 18.6% 1,510 15.1% United States 1,732 15.7% 1,799 15.2% International 246 6.4% 278 6.2% Total 6,600 17.8% 6,470 16.3% 1. FY1
Slide 105: Operating free cash flows by segment
Operating free cash flows by segment Operating free cash flows In Euro billion 3,035 +2% 3,034 +2 6.2 6.3 FY17 Life & Savings FCF In Euro million Life & Savings 2.9 3.0 Expected Expected Operating statutory change in Free Cash Flow earnings required capital 2,755 2,659 Property & Casualty 2.7 2.7 FY
Slide 106: Group operating free cash flows by geography
Group operating free cash flows by geography In Euro million FY16 FY17 France 1,687 1,404 Europe 2,387 2,744 Asia 477 379 United States 805 975 International 314 317 Other 504 473 Total 6,174 6,292 B61 Full Year 2017 Earnings l Appendices l February 22, 2018
Slide 107: Strong cash flow generation and remittance
Strong cash flow generation and remittance In Euro billion Remittance ratio 88% 78% in line with our guidance of 75% - 85% 6.2 6.3 5.4 4.9 ▪ Includes USD 0.9 billion cash movement from AXA Group to AXA US, as part of the pre-IPO transactions and in line with our communication on November 14, 2017 ▪
Slide 108: L&S free cash flow emergence from inforce and new business
L&S free cash flow emergence from inforce and new business Expected undiscounted cash flows Expected undiscounted cash flows from 2017 inforce1 business from 2017 new business In Euro billion In Euro billion 25 3.0 20 2.0 15 1.0 2017 10 0.0 1-5 6-10 11-15 16-20 21-25 31-35 26-30 >35 5 -1.0 0 -2.0 1-
Slide 109: B5 Corporate Responsibility
B5 Corporate Responsibility
Slide 110: Main SRI rating
Main SRI rating 6th overall/worldwide and 1st insurer by number of SRI funds in its capital (Ipreo, Q3 2017) 2016: Sector Leader “A+” in the 2017 UN PRI Reporting Score: A- 1st on 37 insurance companies (Responsible Investment Strategy) Level Score: « Leadership » Included in Euronext Vigeo indexes
Slide 111: ESG integration into investments
ESG integration into investments AXA’s “ESG + Carbon” RI Strategy “ESG + CARBON” INTEGRATION SECTOR GUIDELINES & EXCLUSIONS IMPACT INVESTING • Long-term ESG integration process: gradual and • ESG Footprint Committee: ad-hoc exclusions • Two “impact investment” funds (€200 million systematic integrat
Slide 112: B6 Pro-forma reporting scope
B6 Pro-forma reporting scope
Slide 113: Pro forma figures (former reporting scope) | Revenues and underlying earnings
Pro forma figures (former reporting scope) | Revenues and underlying earnings Revenues FY16 FY17 Underlying earnings FY16 FY17 Life & Savings 52,041 49,907 Life & Savings 3,078 3,288 (+) Health 8,241 8,848 (+) Health 429 433 (=) Life & Savings incl. Health (former scope) 60,282 58,754 (=) Life & Sav
Slide 114: Pro forma figures (former reporting scope) | Other indicators
Pro forma figures (former reporting scope) | Other indicators P&C profitability FY16 FY17 P&C current year combined ratio 97.7% 97.6% Impact of Health 0.1% 0.0% P&C current year combined ratio incl. Health (former scope) 97.7% 97.5% P&C AY CoR 96.4% 96.3% Impact of Health 0.2% 0.1% P&C all-year comb