Axa Sa · EURONEXT:CS
Axa Sa — H1 2009 Earnings Presentation
82 slides from Axa Sa's earnings presentation, Aug 5, 2009
Slide 1: Half Year 2009 Earnings
Half Year 2009 Earnings August 5, 2009 Presentation
Slide 2: 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
Slide 3: AXA at a glance
AXA at a glance Our global business 1H09 Revenues(1): Asset management France €48 billion 4% North 25% L&S MedLA America 14% P&C 34% region Assets under management: 14% 14% 10% Asia-Pacific (incl. Japan) €967 billion 62% 7% NORCEE 29% UK &Ireland Our clients: 80 million, mostly retail Our people: 13
Slide 4: Table of contents
Table of contents Key highlights by Henri de Castries, Group CEO Page 5 Financial performance by Denis Duverne, Group CFO Page 13 Operational performance: Update on US business Page 25 by Kip Condron, AXA Equitable CEO 4 – AXA HY09 Accounts – August 5, 2009
Slide 5: 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 6: Earnings recovery in 1H09 versus 2H08
Earnings recovery in 1H09 versus 2H08 In Euro million Earnings recovery in +63% 1H09 vs. 2H08 1H09 versus 2H08 2,766 2,116 1,278 Underlying Improvement in US Earnings Variable Annuity margin Confirmation of financial 1H08 2H08 1H09 strength +327% 3,290 Adjusted 1,736 Higher capital gains Overall res
Slide 7: Confirmation of financial strength
Confirmation of financial strength 127% 133% Earnings recovery in Solvency I surplus up 1H09 versus 2H08 Solvency I €1 billion to €7 billion FY08 1H09 Confirmation of financial strength 37.4 38.8 Shareholders’ Up €1.4 billion reflecting equity Net Income contribution (in Euro billion) FY08 1H09 Over
Slide 8: Overall resilient customer base
Overall resilient customer base In Euro billion Earnings recovery in 49.3 48.4 1H09 versus 2H08 Revenues Revenues: -1.8% ( -5.7% on a comparable basis) 1H08 1H09 Confirmation of financial strength Property & Life & Savings Positive inflows in Casualty(1) €+5.6 billion +695,000 insurance Net inflows
Slide 9: Strong management actions to weather the market turmoil
Strong management actions to weather the market turmoil Earnings recovery in • Repricing and redesign of Variable Annuity 1H09 versus 2H08 Focus on products across the board profitability • Selective P&C repricing initiated in continental Europe, notably in Motor Confirmation of financial strength P
Slide 10: 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 11: 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 12: Table of contents
Table of contents Key highlights by Henri de Castries, Group CEO Page 5 Financial performance by Denis Duverne, Group CFO Page 13 Operational performance: Update on US business Page 25 by Kip Condron, AXA Equitable CEO 12 – AXA HY09 Accounts – August 5, 2009
Slide 13: 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 14: L&S Underlying Earnings
L&S Underlying Earnings Key drivers of change in L&S L&S Underlying Earnings Underlying Earnings In Euro million (full detail in appendix on pages 10 to 14) -16% Margin on assets -22%: €-0.6 billion 1,396 Unit-linked €-0.2bn lower average AUM (-18%) with lower margins 1,232 (down 4 bps to 123 bps
Slide 15: P&C Underlying Earnings
P&C Underlying Earnings Key drivers of change in P&C P&C Underlying Earnings Underlying Earnings In Euro million (full detail in appendix on pages 15 to 19) Combined ratio up 1.7 pts to 98.0% -12% Loss ratio +2.0 pts €-0.2 billion 1,133 Natural events: +2.1 pts 986 Current year loss ratio excl.
Slide 16: Asset Management Underlying Earnings
Asset Management Underlying Earnings Asset Management Key drivers of change in Asset Underlying Earnings Management Underlying Earnings In Euro million (full detail in appendix on pages 20 & 21) -42% Asset management revenues -34% €-0.6 billion 285 Lower average AUM (-26%) Lower fees (down 3 bps
Slide 17: 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 18: 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 19: Solvency I
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 19
Slide 20: Shareholders' equity
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 21: Net financial debt
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 22: 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 23: Embedded Value update
Embedded Value update Stabilizing new business value margin Sources of change Note: Actuarial and financial assumptions are not updated on a half year basis, except for interest rates which are hedged at point of sale for Variable Annuity products NBV margin evolution Mainly due to the 14.0% 13.7% +
Slide 24: Table of contents
Table of contents Key highlights by Henri de Castries, Group CEO Page 5 Financial performance by Denis Duverne, Group CFO Page 13 Operational performance: Update on US business Page 25 by Kip Condron, AXA Equitable CEO 24 – AXA HY09 Accounts – August 5, 2009
Slide 25: Underlying earnings improved in 1H09 vs. 2H08
Underlying earnings improved in 1H09 vs. 2H08 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
Slide 26: Decisive management actions to maintain margins
Decisive management actions to maintain margins Accumulator product redesign for US NBV margin development current interest rate environment 4.50% 10 year US Treasury Yield 18.9% 3.25% +7.5% 4.9% 4.8% 2.00% 3/31/09 2.8% 12/31/08 9/30/08 6/30/09 -1.0% FY07 1H08 FY08 1H09 1Q09 2Q09 Repriced products f
Slide 27: AXA Equitable Stabilizing capital ratios
AXA Equitable Stabilizing capital ratios 2008 Capital Evolution 2009 Capital Outlook • Decrease from decline in AllianceBernstein stock • Protection program for equity market decline price (Dec ’07: $75.25, Dec ’08: $20.79) - $3 billion, partly offset by related decline in required • Lower sensitivi
Slide 28: Sales and Distribution Outlook
Sales and Distribution Outlook Strong distribution – Diversified, multi-channel distribution network • Strong 3rd Party Distribution • Retail presence 9 Annuities – AXA Distributors 9 Over 6,000 proprietary agents • Banks 9 Consistent life and annuity production • Broker Dealers 9 Top 3 market share
Slide 29: Future opportunities in Variable Annuities
Future opportunities in Variable Annuities Retirement income needs are a major driver for Variable Annuities • Savings responsibility and risk transferred to individuals • Increased need for long-term, tax-advantaged investing Client needs have not changed… but their mindset has Longevity • 77 milli
Slide 30: AllianceBernstein
AllianceBernstein Assets Under Management • Encouraged by 2Q09 relative performance $ billion 800 of majority of AB services: 462 447 • Value and Fixed Income mandates outperformed • Regaining client confidence 12/31/07 12/31/08 6/30/09 • Private Client net outflows improved vs. 1Q09 as redemptions
Slide 31: 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 32: Notes
Notes Page 3 (1) Revenues by business line: excluding Holding, with banking included in asset management and international business included in P&C; revenues by country: L&S and P&C revenues Page 8 (1) Net new personal contracts Page 9 (1) Corresponds to annualized administrative and acquisition exp
Slide 33: Definitions
Definitions AXA's HY09 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2009 and are subject to completion of a limited review by AXA’s independent auditors. Adjusted earnings, underlying earnings, NBV are non-GAAP
Slide 34: Half Year 2009 Earnings Appendices
Half Year 2009 Earnings August 5, 2009 Appendices
Slide 35: Table of content
Table of content Details on revenues page 3 Details on earnings page 6 Details on assets page 24 Shareholders’ equity and liabilities page 40 Embedded value page 45 Sensitivities page 47 2 – AXA HY09 Accounts – August 5, 2009
Slide 36: Details on revenues
Details on revenues redefining / standards aA |
Slide 37: Total revenues
Total revenues Change on a Change on a In Euro million 1H08 1H09 reported comparable basis basis Life & Savings 30,826 30,065 -2.5% -7.5% Property & Casualty 14,519 14,919 +2.8% +0.8% Asset Management 2,102 1,503 -28.5% -34.0% International Insurance 1,673 1,731 +3.5% +2.7% Banking & Holdings 199 19
Slide 38: 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 39: Details on Earnings
Details on Earnings redefining / standards aA |
Slide 40: Details on Earnings
Details on Earnings 1 Underlying Earnings by segment page 8 2 Underlying Earnings by region page 9 3 Details of L&S margin analysis page 10 4 Details of P&C margin analysis page 15 5 Details of Asset Management margin analysis page 19 6 Adjusted Earnings page 21 7 Net Income page 22 8 Cash flow stat
Slide 41: Underlying Earnings by segment
1 Underlying Earnings by segment Change on a Change on a In Euro million 1H08 1H09 reported comparable basis basis Life & Savings 1,396 1,232 -12% -16% Property & Casualty 1,133 986 -13% -12% Asset Management 285 176 -38% -42% International Insurance 172 122 -29% -30% Banking 24 15 -38% -40% Holding
Slide 42: Underlying Earnings by region
2 Underlying Earnings by region Euro million Underlying Earnings 1H08 1H09 % % Comparable Life & Savings 1,396 1,232 -12% -16% North America 330 273 -17% -28% France 431 264 -39% -39% NORCEE 252 248 -1% -3% UK & Ireland 92 133 44% 67% Asia-Pacific 248 253 2% -17% MedLA 43 64 48% 50% Property & Casua
Slide 43: Details of L&S margin analysis
3 Underlying Earnings Details of L&S margin analysis Life & Savings Property & Casualty Asset Management Gross Margin Expenses Comp. Comp. In Euro million 1H09 In Euro million 1H09 Change* Change* Margin on revenues** 2,219 -2% Acquisition expenses 1,783 +10% Margin on assets 2,209 -22% Admin. expen
Slide 44: Details of L&S margin on revenues
3 Underlying Earnings Details of L&S margin on revenues Margin on revenues Life & Savings Property & Casualty Asset Management Average margin on L&S revenues* Ê Ê 7.4% +6% +1% business mix Margin on revenues* +5% country mix x Euro 2,219 million -2% Ê Ê Life & Savings revenues Euro 30,065 million -7
Slide 45: Details of L&S margin on unit-linked products
Underlying Earnings 3 Details of L&S margin on unit-linked products Unit-linked management fees Life & Savings Property & Casualty Asset Management Average management fees on unit-linked reserves (in bps) 62 bps -3% Ê (123 bps annualized basis) Unit-linked +1% business mix management fees -4% countr
Slide 46: Details of L&S margin on General Account products
Underlying Earnings 3 Details of L&S margin on General Account products Investment margin Life & Savings Property & Casualty Asset Management Unit-linked management fees Euro 865 million -21% Ê Margin on assets* Average management fees on + general account reserves Euro 2,209 million -22% Ê Ê 33 bps
Slide 47: Details of L&S technical margin
3 Underlying Earnings Details of L&S technical margin Technical margin & other Life & Savings Property & Casualty Asset Management Mortality & morbidity margin & other* +20% Ê Ê Euro 1,150 million Technical margin + +85% Ê Ê Euro 1,099 million VA hedging margin** Euro -52 million na Ê Ê In Euro mill
Slide 48: Details of P&C margin analysis
4 Underlying Earnings Details of P&C margin analysis Life & Savings Property & Casualty Asset Management Net technical result Net investment income Comp. Comp. In Euro million 1H09 In Euro million 1H09 Change Change Revenues 14,919 +0.8% Average P&C assets 55,186 +1% x x Combined ratio* (in %) 98.0%
Slide 49: Details on Property & Casualty Combined Ratio
4 Underlying Earnings Details on Property & Casualty Combined Ratio Life & Savings Property & Casualty Asset Management Loss Ratio (%) +1.9 pts Combined Ratio (%) Ê 98.0% +2.1 pts 96.4% +1.6 pts +0.2 pt 70.3% 68.4% -2.0 pts 1H08 Current Nat Prior Scope 1H09 Loss accident events* year 68.4 70.3 year
Slide 50: Details on Property & Casualty reserve ratio
4 Underlying Earnings Details on Property & Casualty reserve ratio Life & Savings Property & Casualty Asset Management Reserve ratio 1H09 vs. FY08 roll-forward (Net technical reserves/Net earned premiums) +5 pts 198% +10 pts Ä 187% +0 pt -4 pts -0 pt 198% 198% 193% 193% 194% 186% 187% FY08 Scope Nat
Slide 51: Details on Property & Casualty pricing trends
4 Underlying Earnings Details on Property & Casualty pricing trends Life & Savings Property & Casualty Asset Management Charts below show the pricing component of change in AXA’s average premiums between 2008 and 1H09 (excluding change in mix) Individual motor GER IE FR BE IT -2% 0% +2% +4% >+4% Hou
Slide 52: Details of Asset Management margin analysis
5 Underlying Earnings Details of Asset Management margin analysis Life & Savings Property & Casualty Asset Management Margin Expenses Comp. Comp. In Euro million 1H09 In Euro million 1H09 Change Change Asset Management Asset Management 1,347 -32% 1,114 -18% revenues expenses Distribution revenues 15
Slide 53: Details on Asset Management revenues
5 Underlying Earnings Details on Asset Management revenues Life & Savings Property & Casualty Asset Management Average Asset Management fees on Assets under Management 17 bps -9% Ê (34 bps annualized basis) -10 pts Equity mix to 38% (vs. 48% at 1H08) Asset Management revenues x Euro 1,347 million -3
Slide 54: Adjusted Earnings
6 Adjusted Earnings In Euro million 1H08 1H09 Underlying Earnings 2,766 2,116 Net realized capital gains 834 241 Net impairments -786 -691 of which equities -661 -339 of which fixed income -54 -162 of which private equity, real estate & other -72 -191 Equity portfolio hedging 477 71 Adjusted Earning
Slide 55: Net Income
7 Net Income In Euro million 1H08 1H09 Adjusted Earnings 3,290 1,736 Change in fair value -1,012 -280 of which impact from credit spreads n.a. 309 of which alternative investments n.a. -317 of which mark to market effects related to balance sheet items n.a. -210 including interest rates strategies (
Slide 56: Estimated shareholders' cash-flow statement
8 Estimated shareholders’ cash-flow statement In Euro billion FY08 1H09 Adjusted earnings (n-1) 6.1 3.7 Difference between adjusted earnings and statutory results (n-1) -2.0 -1.8 Increase in consolidated solvency requirements(1) -1.3 -2.0 Capital optimization 0.6 3.1 Estimated shareholders’ cash flo
Slide 57: Details on Assets
Details on Assets redefining / standards aA |
Slide 58: Details on Assets
Details on Assets 1 Corporate bonds page 26 2 CDS page 28 3 ABS page 29 4 Equity page 35 5 Real Estate page 36 6 Hedge Funds page 37 7 Private Equity page 38 8 Mortgage loans page 39 25 – AXA HY09 Accounts – August 5, 2009
Slide 59: Corporate bonds portfolio
1 Corporate bonds portfolio AXA Corporate bond portfolio by industry A+ average rating (Euro 139 billion) Other AAA 6% 13% Energy 4% BBB Basic Materials 18% Consumer 4% Cyclical 4% (-1% vs. FY08) Others 3% AA Industrial A 22% 5% 41% Financials 54% (-1% vs. FY08) Utilities Preferred shares: Euro 0.
Slide 60: Corporate bonds breakdown by country (including CDS)
1 Corporate bonds breakdown by country (including CDS) P = Participating NP = Non-participating Euro billion As of June 30, 2009 US UK Japan Germany Switzerland France Other* Total P NP NP NP P NP P NP P NP P NP P NP AAA 1 0 0 4 0 4 1 4 2 1 1 12 6 AA 2 1 3 3 1 3 1 6 2 5 4 17 13 A 9 2 7 5 1 5 1 11 4
Slide 61: Corporate bonds: focus on CDS
2 Corporate bonds: focus on CDS CDS Investment Strategy: CDS are used as an alternative to investment grade corporate bonds mainly via iTraxx Main Europe Since December 31, 2008, net exposure decreased by Euro 6 billion Net Net Euro million Notional Notional As of Dec 31, 2008 As of June 30, 2009
Slide 62: Asset Backed Securities by underlying type of asset
3 Asset Backed Securities by underlying type of asset Economic breakdown of ABS by asset type(1) Ca. 68% AAA & AA As of June 30, 2009 Total ABS = Euro 10.7 billion AAA 56% Mortgage-backed Other asset-backed UK RMBS AA NR/Equity € 0.2 billion 4% 11% A US Subprime & Alt-A 11% € 0.7 billion CLO High Yi
Slide 63: Credit risk management: ABS investments
3 Credit risk management: ABS investments Group ABS exposure decreased by 9%, driven by: • 6% decrease due to maturities, mainly on CLOs, Prime RMBS, Consumer ABS and US subprime • 5% decrease in asset value, mainly on CLOs (rating downgrades below AA), UK RMBS (continued uncertainty, less refinanci
Slide 64: Focus on Mortgage-Backed Securities
3 Focus on Mortgage-Backed Securities Euro million Prime Residential US Subprime As of June 30, 2009 Commercial MBS UK RMBS US Alt-A RMBS MBS RMBS (unless indicated) % of par @ 31/12/07 98% 92% 96% 72% 59% % of par @ 30/06/08 96% 83% 82% 53% 28% % of par @ 31/12/08 91% 77% 59% 45% 14% % of par @ 30/
Slide 65: Focus on US Subprime RMBS by vintage
3 Focus on US Subprime RMBS by vintage Euro million 2004 & As of June 30, 2008 value 2007 value 2006 value 2005 value value Total value Prior 2009 AAA 0 - 2 85% 9 83% 37 85% 22 69% 70 79% AA 0 - 1 82% 16 59% 160 69% 4 41% 182 67% A 0 - 1 70% 31 47% 45 60% 10 16% 87 43% BBB 0 - 38 44% 45 43% 23 35% 5
Slide 66: Focus on other asset-backed securities
3 Focus on other asset-backed securities Euro million CDO CLO Consumer ABS As of June 30, 2009 CDOs include Euro 1 million CDOs of subprime % of par @ 31/12/07 78% 90% 98% Consumer ABS is comprised of % of par @ 30/06/08 75% 77% 94% the following: % of par @ 31/12/08 42% 75% 90% Leases 24% % of
Slide 67: Focus on CDO
3 Focus on CDO Euro million Investment High Structured Other Total As of June 30, 2009 grade Yield Finance CDOs AAA 745 0 9 41 795 AA 43 34 30 9 116 A 14 35 8 60 117 BBB 56 13 1 23 92 Below invst. grade 175 19 5 44 243 Equity / Non rated 67 32 0 48 146 Value 1,100 133 52 224 1,509 Shareholder Exposu
Slide 68: Update on equity hedges
4 Update on equity hedges Euro 5 billion net equity exposure Estimated shareholders’ exposure as of June 30, 2009 In Euro billion FY08 1H09 Lower sensitivity of invested assets to equity markets Macro hedge implemented at AXA level: • Euro 3.5 bn put 2000/1750 Eurostoxx 50 by Dec 2009 (Premium €57 m
Slide 69: Real Estate investments
5 Real Estate investments Defensive portfolio with good performance over the long term Key indicators Market value 1H 09 market value by Split by nature Performance in France (in Euro billion) country France Switz. Belgium Germany France Office ~50% ~50% ~75% ~70% 19* 40% Residential ~15% ~45% ~0% ~
Slide 70: Hedge Fund investments
6 Hedge Fund investments Back to stable performance Key Key indicators indicators Market value Exposure and concentration risk Performance* (in Euro billion) • Mostly management of funds of hedge funds 2Q09 1% 4* • Highest single exposure of Euro <200 million (within (until May) Group guidance of 5%
Slide 71: Private Equity investments
7 Private Equity investments Diversified portfolio built over the long run Market value Breakdown by geography Breakdown by expertise Performance (in Euro billion) Buyout Europe 54% AXA PE recurring top Others 5 3% Infras- ~63% Asia 4% tructure ~9% quartile performer ~20% 39% Mezzanine ~8% US Ventur
Slide 72: Mortgage loans & other
8 Mortgage loans & other Low risk mortgage loan portfolio Key indicators 1H09 market value by country Very secured Market value portfolio: (in Euro billion) Germany 98% Residential 15* Other 1H09 default rate 38% 11% Commercial 0.07% 2% Switzerland 1H09 loan to value 25% 72% Commercial 62% 26% 100%
Slide 73: Shareholders' equity and liabilities
Shareholders’ equity and liabilities
Slide 74: Shareholders' equity and liabilities
Shareholders’ equity and liabilities 1 Solvency I page 42 2 Net financial debt page 43 3 Group vs. Holding debt page 44 41 – AXA HY09 Accounts – August 5, 2009
Slide 75: Solvency I reconciliation to shareholders' equity & sensitivities
Solvency I reconciliation to shareholders’ 1 equity & sensitivities Available financial resources(1) Solvency I (Euro billion) (Euro billion) SH equity 100%(2) 42 29 Intangibles(3) - 29 Surplus 7 Admitted sub debt(4) +3 Locally admitted assets +4 Dividend accrued -0 Requirement 22 Real estate +5 Pen
Slide 76: Net financial debt Long-term maturities
2 Net financial debt Long-term maturities 0.0 Total net debt Contractual maturity breakdown(4) In Euro billion In Euro billion 17.7 Undrawn credit lines Euro 7 billion 5.9 0.0 Cash & cash equivalent (5) Euro 27 billion 0.0 15.6(1) 0.0 0.0 0.0 5.7 0 0 0 2.8 0.0 0 0 0.0 0.0 0.1 2.8 0.0 0.0 1.8 1.5 5.9
Slide 77: Group vs. holding net debt
3 Group vs. holding net debt Group net debt Breakdown of Holding net debt In Euro billion -€2.0 billion In Euro billion 17.7 15.6 10.4 AXA SA’s FY08 1H09 internal debt 10.8 +30.7 19.3 AXA SA’s +28.2 Breakdown of Group net debt external debt 16.8 3.1 In Euro billion 17.7 1.0 Other(2) 0.5 2.0 AXA’s su
Slide 78: Embedded Value
Embedded Value redefining / standards aA |
Slide 79: Focus on NBV
Focus on NBV Adverse market conditions mechanically impacting NBV 1H09 NBV Volume Business Expenses Market FX & NBV (APE) mix (unit cost) conditions other Total Euro million Group share 1H08 1H09 US 40 -38% +46% -51% -22% +5% -59% 16 France 36 +13% -45% +32% 0% 0% -1% 36 NORCEE 132 -16% +1% -2% -7%
Slide 80: Sensitivities
redefining / standards aA |
Slide 81: US DAC sensitivities
US DAC sensitivities US DAC sensitivities to stock market movements Lower US DAC sensitivity to equity markets in 2009 following 2008 reset US 2009 equity market performance Underlying In Euro billion Earnings* +25% 0.0 +10% 0.0 0% 0.0 -10% 0.0 -25% 0.0 * Net of tax 48 – AXA HY09 Accounts – August 5
Slide 82: 1H09 sensitivities
1H09 sensitivities vs. 1H09 experience Impairments Net Income OCI In Euro billion net of hedges (including impairments) -25% -0.4 -0.3 -0.9 Equities* +25% -0.3 -0.4 +1.8 -100 bps N/S +0.3 +5.6 Interest rates +100 bps N/S -0.2 -5.5 -75 bps -0.0 +0.3 +1.4 Corporate spreads +75 bps +0.0 -0.