Slide 1: Half Year Earnings 2020
Half Year Earnings 2020 Press conference August 6, 2020
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: Table of contents
Table of contents 1 Introduction 2 Business lines 3 Summary of earnings & financial strength 4 Concluding remarks 3 Half Year Earnings 2020 | August 6, 2020
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO
Slide 5: Covid-19: AXA is fully playing its role thanks to its financial strength
Covid-19: AXA is fully playing its role thanks to its financial strength Protecting our employees and customers Financing the economic recovery Compensation Strengthening SME capital Euro 1.2 billion of claims Euro 500 million allocated in France Solidarity Supporting affected businesses Euro 300 mi
Slide 6: AXA demonstrates its resilience in an unprecedented crisis
AXA demonstrates its resilience in an unprecedented crisis 52 bn Resilient revenues Revenues € -2% thanks to strong 1Q growth and business continuity Operational profitability, decrease in underlying earnings, mainly in P&C Underlying earnings1 € 1.9 bn -48% (+1 % ex Covid-19 claims2 commercial line
Slide 7: Resilient revenues thanks to strong 1Q growth and business continuity
Resilient revenues thanks to strong 1Q growth and business continuity Gross revenues 1H20 P&C Health Life and savings € 52 bn -1% +9% -8% +10% -2% +8% +3% +4% 1Q20 2Q20 1Q20 2Q20 1Q20 2Q20 -8% -21% 7 Half Year Earnings 2020 | August 6, 2020
Slide 8: Covid-19 impact on profitability in line with published guidance
Covid-19 impact on profitability in line with published guidance Underlying earnings In Euro billion -48% €1.5bn estimated net 3.6 Covid-19 impacts related to P&C and +1% solidarity measures for 2020, in line with 1.9 ex Covid-19 claims1 guidance3, and booked and EQH2 in 1H20 1H19 1H20 8 Half Year E
Slide 9: Resilience in our geographies; Covid-19 impact in P&C commercial lines
Resilience in our geographies; Covid-19 impact in P&C commercial lines Underlying earnings In Euro billion France Europe Asia & International AXA XL 1.3 1.3 0.9 0.9 0.9 0.8 0.5 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 -0.8 9 Half Year Earnings 2020 | August 6, 2020
Slide 10: AXA XL's transformation progressing well in a hardening cycle
AXA XL’s transformation progressing well in a hardening cycle Pricing actions Underwriting actions Operating performance (ex Covid-192) 19% o Reduced Property Cat Insurance 10% exposure and line-sizing Revenues +14.3% in Casualty +9% excl. Covid-19 exposure adjustements3 1Q20 2Q20 o Adjusting contra
Slide 11: A solid balance sheet
A solid balance sheet 1H20 Solvency II ratio1 1H20 Debt gearing2 1H20 Cash remittance 28.8% 27.6% 180% expected upsides € 4.9 bn in 2H20 FY19 1H20 170% - 220% 25% - 28% € 5.6 bn Ambition 2020 target range Target by 2020 remitted in FY19 11 Half Year Earnings 2020 | August 6, 2020 All notes are on pa
Slide 12: The Covid-19 crisis is reinforcing our strategic convictions
The Covid-19 crisis is reinforcing our strategic convictions Risks are evolving Innovation is key Climate is the priority Risks are increasingly Partnership with Accor: AXA’s Climate Report: interconnected and global healthcare and telemedicine AXA's warming potential of 2.8°C (climate change, healt
Slide 13: Business lines
2 Business lines Etienne Bouas-Laurent Group CFO
Slide 14: Underlying earnings
Underlying earnings In Euro billion Underlying earnings by business line2 -48% 1H19 1H20 Change 3.6 -0.3 +1% Property & Casualty 1,981 544 -72% -1.5 ex Covid-19 Life & Savings 1,261 1,165 -9% claims1 Health 355 388 +7% and EQH Asset Management 123 130 +5% Banking & Holdings -383 -341 +11% 1.9 Equita
Slide 15: Property & Casualty | Revenues
Property & Casualty | Revenues In Euro billion 5% Gross revenues Revenues by quarter -1% -1% -4% -0.3 28.0 28.1 -10% 1Q 2Q 1Q 2Q Commercial Personal Commercial 0% Price increases 9% 4% Personal -2% 1% 0% 1Q 2Q 1Q 2Q 1H19 1H20 Commercial Personal 15 Half Year Earnings 2020 | August 6, 2020
Slide 16: Property & Casualty | Results
Property & Casualty | Results Combined ratio Underlying earnings In Euro billion +0.6% -0.5% -0.2% 101.7% -72% +3% ex Covid-19 ex net Covid-19 impacts1 2.0 claims1 +6.6% 6.5% 95.1% 95.1% -1.5 3.4% 0.5 -1.5 -2.3% All year Covid-19 Nat Cat PYD Expenses All year 1H19 Covid-19 1H20 1H19 impacts 1H20 imp
Slide 17: Property & Casualty | Covid-19
Property & Casualty | Covid-19 In Euro billion Post tax and net of reinsurance 1H20 Covid-19 impacts I –€1.5 bn 1H20 P&C underlying earnings ex Covid-19 claims2 I +3% +0.4 0.8 FR/EU 0.5 AXA XL AXA XL AXA XL FR 0.4 -0.2 -0.3 -0.5 0.2 FR/EU +9 % +4 % +1 % +11 % -0.8 0.0 Business Event Motor Other line
Slide 18: Life & Savings | Revenues and net flows
Life & Savings | Revenues and net flows In Euro billion Gross revenues Net flows -8% +1.4 +2.4 21.3 15.6 +1.1 Protection +1% Unit-Linked +1% G/A Savings -25% -2.1 1H19 1H20 Protection Unit-Linked G/A Savings 18 Half Year Earnings 2020 | August 6, 2020
Slide 19: Life & Savings | Underlying earnings
Life & Savings | Underlying earnings In Euro million Underlying earnings -9% Lower technical margin including extended disability covers, lower 1,261 annuities discount rate and lower 70 1,165 surrender benefits 55 -211 -9 Investment margin (-1bp to 69bps) with lower yields mostly offset by lower cr
Slide 20: Health | Revenues and underlying earnings
Health | Revenues and underlying earnings Gross revenues Combined ratio Underlying earnings In Euro billion In Euro million +9% +0.2pt +7% 7.9 93.9% 94.0% 388 7.2 355 1H19 1H20 1H19 1H20 (excl. EQH) ▶ Individual +7% ▶ Loss ratio1 +0.4pt ▶ Group +11% ▶ Expense ratio1 -0.2pt 1H19 1H20 (excl. EQH) 20 H
Slide 21: Asset management | Revenues and underlying earnings
Asset management | Revenues and underlying earnings In Euro million Gross revenues Cost income ratio Underlying earnings +3% -0.3pt +5% 587 606 71.3% 71.0% 130 123 1H19 1H20 1H19 1H20 1H19 1H20 (excl. EQH) (excl. EQH) (excl. EQH) +10% average AUM € 16 bn (€ 815 bn closing AUM) 1H20 Net inflows 21 Ha
Slide 22: Summary of earnings & financial strength
3 Summary of earnings & financial strength
Slide 23: Group results
Group results Underlying earnings Net income In Euro million In Euro million -48% -39% 3,620 2,333 1,885 1,429 1H19 1H20 1H19 1H20 23 Half Year Earnings 2020 | August 6, 2020
Slide 24: Main financial strength indicators
Main financial strength indicators Shareholders’ equity Solvency II ratio1 Financial strength ratings In Euro billion AA- 69.9 70.1 198% stable 182% 180% Aa3 stable AA- stable FY19 1H20 4Q19 1Q20 1H20 24 Half Year Earnings 2020 | August 6, 2020 All notes are on pages 31 to 33 of this document.
Slide 25: Assets | Portfolio management during the crisis
Assets | Portfolio management during the crisis Zero defaults1 and average ratings maintained Resilient 1H20 reinvestment yield across corporate bond portfolio from capturing market opportunities 3.0% AAA 15% 15% AA 10% 11% A 31% 30% 1.5% 1.3% BBB 37% 37% BIG 7% 7% FY19 1H20 Core Fixed income Altern
Slide 26: Concluding remarks
4 Concluding remarks Thomas Buberl Group CEO
Slide 27: AXA fully plays its role and demonstrates its resilience
1H20 | AXA fully plays its role and demonstrates its resilience during an unprecedented crisis ▶ We protect our people and clients while investing in the economic recovery ▶ Revenues are resilient, the Group is profitable, generates significant cash-flows and continues to reduce its debt gearing ▶ A
Slide 28: Q&A session
Q&A session
Slide 29: Market recognizes AXA as a sustainability leader
Market recognizes AXA as a sustainability leader 2019: Sector Leader “A+” 2019 UN PRI Scorecard Score: A- 1st/49 insurance companies (focus on Responsible Investment) Level Score: “Leadership” Included in Euronext Vigeo indices Score: AAA 2019: 3rd place Included in the Score: 83/100 FTSE4GOOD Inclu
Slide 30: Scope
Scope France: includes insurance activities,banking activities and holdings in France. Europe: Switzerland (insurance activities), Germany (insurance and banking activities, and holdings), Belgium (insurance activities and holdings), Unincludesited Kingdom and Ireland (insurance activities and holdi
Slide 31: Notes (1/3)
Notes (1/3) Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earn ings, unless otherwise specified. Page 6 1. Underlying Earnings (“UE”), Underlying Earnings per share (“UEPS”) and Adjusted Return on Equity (“AROE”) are APMs. Fo
Slide 32: Notes (2/3)
Notes (2/3) Page 10 1. Renewals only at AXA XL, price effect calculated as a percentage of renewed premiums. Price effect for 1Q20 and 2Q20 based on the renewal premiums in each respective quarter in AXA XL. 2. “Covid-19 claims” includes P&C net claims related to Covid-19, as well as the impacts fro
Slide 33: Notes (3/3)
Notes (3/3) Page 17 1. “Solidarity and Other” includes the impact from solidarity measures lined to the P&C activity as well as the impact from lower P&C volumesnet of expenses, linked to Covid-19. 2. Covid-19 claims” includes P&C net claims related to Covid-19, as well as the impacts from solidarit