Axa Sa · EURONEXT:CS
Axa Sa — H1 2012 Earnings Presentation
40 slides from Axa Sa's earnings presentation, Aug 3, 2012
Slide 1: Half Year 2012 Earnings Press Conference
2012 Half Year Earnings Press Conference Paris - August 3, 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: AXA at a glance
AXA at a glance Regions (5) Euro billion 48.4 revenues (1) Asia (excl. Japan) 7% Japan France 11% 25% 1,100 Euro billion assets under management (2) Northern, Central and United States Eastern Europe 10% 2.3 Euro billion underlying earnings (1) 32% United Kingdom and Ireland Mediterranean 3% & Latin
Slide 4: Content
Content 1 Key highlights page 5 6 Global performance page 26 2 Life & Savings page 11 7 Balance sheet page 30 3 Property & Casualty page 17 8 Concluding remarks page 34 4 Asset management page 22 4 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 5: Key highlights
Half Year 2012 Earnings 1 Key highlights Henri de Castries Chairman and CEO 5 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 6: In a deteriorated environment, AXA's performance is progressing
1 In a deteriorated environment, KEY AXA’s performance is progressing HIGHLIGHTS From 1H11 to 1H12, the environment … but AXA stood firm and improved further deteriorated… its underlying margin and strength 4.5% 46.8 48.4 Slowdown of -1 pt 3.5% +3% reported economic growth Revenues IMF forecasts for
Slide 7: AXA's performance reflects the quality of the business model
1 AXA’s performance reflects the quality KEY of the business model HIGHLIGHTS Diversified operations A robust balance sheet Pre-tax Underlying earnings by activity, excl. holdings 188% 207% P&C and Protection & International Solvency I Health Insurance ratio 31% 44% FY11 1H 2012 183% 174%(3) Economi
Slide 8: Continued implementation of Ambition AXA priorities: selectivity
1 Continued implementation of Ambition AXA priorities KEY thanks to the engagement of the teams HIGHLIGHTS Life & Savings Property & Casualty Margin 1H 2012 APE on new business 15.4 16.2 13% 10% 11% Mutual funds & other 6% Revenues +4% in Euro billion comp. 30% 32% 31% Unit-Linked 22% 1H 2011 1H 201
Slide 9: Continued implementation of Ambition AXA priorities: efficiency
1 Continued implementation of Ambition AXA priorities KEY thanks to the engagement of the teams HIGHLIGHTS Competitiveness Global initiatives Progress of the efficiency program in Euro billion Global business lines 1.0 1.5 IT platforms pooling Global product manufacturing 0.16 0.3 Procuremen
Slide 10: Continued implementation of Ambition AXA priorities: acceleration
1 Continued implementation of Ambition AXA priorities KEY thanks to the engagement of the teams HIGHLIGHTS Life & Savings Property & Casualty Acceleration Acceleration +9% in high growth +17% in Asia (1) New business markets (2) Revenues + + New Long-term joint-venture partnership in China in six co
Slide 11: Life & Savings
Half Year 2012 Earnings 2 Life & Savings Denis Duverne Deputy CEO 11 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 12: New business by segment
2 New business by segment LIFE & SAVINGS Protection General Account Mutual funds Unit-Linked & Health Savings & other APE in Euro million APE in Euro million APE in Euro million APE in Euro million 1,250 1,130 948 957 +5% comp. 560 531 -3% comp. 335 309 -6% comp. +2% comp. 1H 2011 1H 2012 1H 2011 1H
Slide 13: New business by market
2 New business by market LIFE & SAVINGS New business Mature markets 1.9 21% High growth markets (1) 16% France Net inflows Margin 1H2012 21% in Euro billion on new business Japan 9% € 3.1 bn Northern 1H2012 APE United States 19% Europe High growth markets (1) 21% Mature markets of Mediterranean & Un
Slide 14: General Account management in a low interest rate environment
2 General Account management in a low interest rate environment LIFE & SAVINGS General Account Savings – Asset yield and guaranteed rates 3.8% 2.2% 0.7% 1H 2012 1H 2012 1H 2012 Asset Average Average yield rate guaranteed rate guaranteed rate (annualized) (portfolio) (new business) Significant buffer
Slide 15: Underlying earnings by segment
2 Underlying earnings by segment (1) LIFE & SAVINGS Protection G/A Variable Unit-Linked & Health Savings Excl. Variable Annuities Annuities in the United States with Guarantees in the United States in Euro million 1,196 in Euro million in Euro million in Euro million 1,070 +9% comp. 371 387 297 237
Slide 16: Underlying earnings
2 Underlying earnings LIFE & SAVINGS Life & Savings Underlying earnings Underlying earnings 1H 2012 Change in Euro million in Euro at constant by country/region million Forex 1,411 1,316 France 375 0% Japan 281 +108% United States 237 -42% +7% Switzerland 157 +19% reported Asia (excl. Japan) 154 +42
Slide 17: Property & Casualty
Half Year 2012 Earnings 3 Property & Casualty Denis Duverne Deputy CEO 17 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 18: Revenues
3 Revenues PROPERTY & CASUALTY Personal lines in Euro million 9,085 9,424 Revenues by market +4% reported Direct 7% +3% comp. High growth markets (1) 1H 2011 1H 2012 France 11% 19.5% Net new contracts +637,000 United € 16.2 bn Kingdom & 1H2012 revenues Ireland 13% Commercial lines Northern Europe 37
Slide 19: Current year combined ratio
3 Current year combined ratio PROPERTY & CASUALTY Better loss ratio … Improved current year 72.4% combined ratio +0.4 -0.6 72.2% 99.2% 98.6% 1H 2011 Nat.Cat. 1H 2012 losses 1H 2012 … and lower expenses + -0.7 pt Expense ratio 26.8% 26.3% 1H 2011 1H 2012 1H 2011 1H 2012 19 - AXA - Half Year 2012 Earn
Slide 20: Combined ratio (all years)
3 Combined ratio (all years) PROPERTY & CASUALTY Current year combined ratio Improved combined ratio 99.2% 98.6% 97.2% 96.4% 1H 2011 1H 2012 Positive prior year + -0.8 pt reserve developments 1H 2011 1H 2012 1H 2011 1H 2012 -2.0% -2.1% 20 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 21: Underlying earnings
3 Underlying earnings PROPERTY & CASUALTY Property & Casualty Underlying earnings in Euro million Underlying earnings 1H 2012 Change In Euro at constant 1,044 by country/region million Forex 989 France 247 +3% Switzerland 198 -10% Mediterranean & Lat. Am. region 198 -2% +6% reported Germany 143 -2%
Slide 22: Asset management
Half Year 2012 Earnings 4 Asset management Denis Duverne Deputy CEO 22 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 23: Assets under management roll-forward
4 Assets under management roll-forward ASSET MANAGEMENT Assets under management roll-forward In Euro billion Assets under FY11 1H2012 7 888 management in Euro billion in Euro billion 41 AXA IM 847 (2.5) (5.2) Third party 178 185 Assets managed for AXA 334 357 Total 512 542 AllianceBernstein Third pa
Slide 24: Activity indicators
4 Activity indicators ASSET MANAGEMENT Revenues by asset manager Net flows in Euro billion 1H 2010 1H 2011 1H 2012 AllianceBernstein 61% € 1.6 bn 1H2012 -8 revenues AXA IM 39% -23 -25 AXA IM: € -2.5 bn AllianceBernstein: € -5.2 bn 24 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 25: Underlying earnings
4 Underlying earnings ASSET MANAGEMENT Asset management Underlying earnings In Euro million 157 159 Underlying earnings 1H2012 Change In Euro at constant by asset manager million Forex +2% AXA Investment Managers 85 -17% reported AllianceBernstein 74 +19% -4% comp. 1H 2011 1H 2012 25 - AXA - Half Ye
Slide 26: Global performance
Half Year 2012 Earnings 5 Global performance Denis Duverne Deputy CEO 26 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 27: Revenues
5 Revenues GLOBAL PERFORMANCE Insurance revenues by region* Revenues 1H2011 1H2012 Change by segment comp. Asia (excl. Japan) P&C Direct in Euro million 3% 2% Japan Life & Savings 27,841 28,607 +0.8% 7% France 22% Property & Casualty 15,350 16,173 +3.7% Northern, Central and Eastern Mediterranean As
Slide 28: Underlying earnings
5 Underlying earnings GLOBAL PERFORMANCE Underlying earnings Underlying earnings 1H2011* 1H2012 Change by segment comp. In Euro million in Euro million Life & Savings 1,316 1,411 +3% 2,228 2,305 Property & Casualty 989 1,044 +4% Asset management 157 159 -4% +3% reported International insurance 143 1
Slide 29: Adjusted earnings & net income
5 Adjusted earnings & net income GLOBAL PERFORMANCE Adjusted earnings In Euro million 2,402 2,427 Mainly driven by lower realized capital gains on +1% equities and real estate, partly offset by lower reported impairments, mainly due to the non-repeat of the 1H11 net impairment on Greek government bo
Slide 30: Balance sheet indicators
Half Year 2012 Earnings 6 Balance sheet indicators Denis Duverne Deputy CEO 30 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 31: Main financial strength indicators
6 Main financial strength indicators BALANCE SHEET 46.5 48.7 Shareholders’ Mainly reflects higher net unrealized equity capital gains in Euro billion FY11* 1H 2012 188% 207% Solvency I Mainly driven by resilient underlying earnings and higher unrealized capital ratio gains FY11 1H 2012 183% 174% (2)
Slide 32: General Account invested assets
6 General Account invested assets BALANCE SHEET Total insurance Changes in invested assets (1) asset allocation Net inflows, investment income and maturities: Listed equities invested mainly in corporate bonds 3% Real estate Mark to market: fixed income assets benefiting from Cash 5% interest ra
Slide 33: Focus on net unrealized capital gains (€10.4 bn)
6 Focus on net unrealized capital gains (€ 10.4 bn) BALANCE SHEET Balance sheet net unrealized Off balance sheet net capital gains (1) unrealized capital gains in Euro billion in Euro billion 7.0 Equity 1.0 5.2 Corporate bonds 0.9 1.9 Government bonds 3.2 3.4 1.2 Real Estate and loans(2) 4.2 3.1 FY1
Slide 34: Concluding remarks
Half Year 2012 Earnings 7 Concluding remarks Henri de Castries Chairman & CEO 34 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 35: We continue to deliver on the priorities of Ambition AXA
7 We continue to deliver on the priorities of Ambition AXA CONCLUDING REMARKS TRUST & ACHIEVEMENT SELECTIVITY EFFICIENCY ACCELERATION CUSTOMER CENTRICITY 35 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 36: Q&A Session
Half Year 2012 Earnings ? Q&A Session 36 - AXA - Half Year 2012 Earnings - August 3, 2012
Slide 37: 1H2012 Key Figures
1H2012 Key Figures APPENDICES in Euro million unless otherwise noted Change Change on a reported basis on a comparable basis GROUP: KEY FIGURES 1H2011 1H2012 Total revenues 46,836 48,405 +3% +1% Underlying Earnings 2,228 2,305 +3% 0% Adjusted Earnings 2,402 2,427 +1% -2% Net Income 4,013 2,586 -36%
Slide 38: SRI ratings
SRI ratings APPENDICES 1-year 2011 trend Overall score 74% (sector avg.: 48%) +4 pts Ò Social 63% (sector avg.: 39%) +3 pts Ò Environmental 85% (sector avg.: 44%) +12 pts Ò Economic 79% (sector avg.: 61%) -1 pt Ô DJSI inclusion Yes (World + STOXX) Stable Î Yearbook ranking Bronze Stable Î For furthe
Slide 39: Notes
Notes Page 3 1. 1H2012. 2. As of June 30, 2012. 3. As of December 31, 2011. 4. 2011 Interbrand ranking. 5. 1H2012 insurance underlying earnings, excluding international insurance. 6. Pre-tax 1H2012 underlying earnings, excluding holdings. 7. Including G/A Savings, Unit-Linked and Banking. Page 7 1.
Slide 40: Definitions
Definitions AXA's 1H12 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2012 and are subject to completion of a limited review by AXA’s independent auditors. Adjusted earnings, underlying earnings, Life & Savings EE