Slide 1: Full Year Earnings 2020
Full Year Earnings 2020 Press conference February 25, 2021
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: Agenda
Agenda 1 Introduction Thomas Buberl, Group CEO 2 Financial performance Etienne Bouas-Laurent, Group CFO 3 Conclusion Thomas Buberl, Group CEO 3 Full Year Earnings 2020 | February 25, 2021
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO
Slide 5: AXA demonstrates its strength in an unprecedented crisis
AXA demonstrates its strength in an unprecedented crisis REVENUES UNDERLYING EARNINGS1 Very good business resilience thanks to preferred segments and continuity €97bn €4.3bn of operations -1% -34% Solid underlying earnings, while supporting customers and the economy Strong balance sheet with Solvenc
Slide 6: Strong business resilience thanks to priority segments
Strong business resilience thanks to priority segments REVENUES € 97bn P&C Commercial Health Protection -1% +2% T4 2020 +6% +2% T4 2020 6 Full Year Earnings 2020 | February 25, 2021
Slide 7: AXA seizing opportunities from excellent business trends
AXA seizing opportunities from excellent business trends Preferred segments P&C profitability L&S business mix Revenue growth accelerated in 4Q20 Improved P&C CY CoR1 (ex Covid & Cats2) Continued shift in L&S net flows in 2020 (€bn) +5% 94.7% +5.0 UL3 94.2% +3% PR3 General Account Savings -3.4 3Q20
Slide 8: AXA XL: benefiting from higher pricing and disciplined management
AXA XL: benefiting from higher pricing and disciplined management Transformation Continued strong pricing 2021 UE3 target actions momentum reaffirmed AXA XL Insurance2 A new and simpler organization, already +22% operational Underwriting discipline focused on increasing profitability and high-potent
Slide 9: AXA performing well across other geographies
AXA performing well across other geographies In Euro billion Resilient earnings Pivoting to Health Accelerating in France and Europe in Asia and International in Alternatives stable +10% +14% 4.3 4.3 4.0 159 3.7 139 FY19 FY20 FY19 FY20 FY19 FY20 Underlying earnings in France and Europe Health revenu
Slide 10: AXA actively contributing to address societal challenges during Covid-19
AXA actively contributing to address societal challenges during Covid-19 Protecting our clients and employees Supporting economic recovery Claims and solidarity measures Providing capital to SMEs €1.5bn expected to be paid1 €700m investment in SMEs in France3 Employee health & well-being Investing i
Slide 11: Quality of AXA's franchise demonstrated through the Covid-19 crisis
Quality of AXA’s franchise demonstrated through the Covid-19 crisis Distributor proximity Employee engagement Client satisfaction % of agents using a digital CRM1 Employee-NPS2 NPS at or above market average4 +24pts +14pts +19pts 91% 35 94% 67% 75% + 21 = FY19 FY20 FY19 FY20 (Global High Performing
Slide 12: AXA accelerate climate actions
AXA accelerate climate actions As a global investor As a global insurer Carbon footprint AXA Climate reduction target of 20% across AXA’s Innovative services to protect General Account Assets1 by 2025 against natural disasters Euro 24 billion Net Zero Insurance Green investment target by 2023 Underw
Slide 13: Confident outlook for 2021 and beyond
Confident outlook for 2021 and beyond Underlying earnings In Euro billion +3% to +7% UEPS1 CAGR2 AXA XL turnaround in 2020 rebased – 2023E 6.3 a favorable market context 0.5 1.5 France & Europe geared for sustained delivery 4.3 Add back Covid-193 Growth in Asia, FY 2020 and excess International and
Slide 14: AXA's Driving Progress 2023 plan
AXA’s Driving Progress 2023 plan Expand Strengthen Grow Health and underwriting cash-flows across Protection Simplify performance Sustain the Group customer experience our climate and accelerate leadership position efficiency 14 Full Year Earnings 2020 | February 25, 2021
Slide 15: Financial performance
2 Financial performance Etienne Bouas-Laurent Group CFO
Slide 16: Gross revenues
Gross revenues In Euro billion Quarterly revenue trends -1% 103.5 EQH 96.7 +4% Total +1% revenues -1% -10% 1Q20 2Q20 3Q20 4Q20 Preferred +5% +5% segments +3% (P&C Commercial, Health, Protection) -3% FY19 FY20 1Q20 2Q20 3Q20 4Q20 16 Full Year Earnings 2020 | February 25, 2021
Slide 17: Underlying earnings
Underlying earnings In Euro billion Underlying earnings by business line2 -34% In Euro million 6.5 FY19 FY20 Change EQH -0.2 Property &Casualty 3,341 1,644 -51% -1.5 Life &Savings 2,508 2,338 -7% 4.3 Health 704 693 -1% Asset Management 264 279 +6% Holding & other -810 -690 +15% Equitable HoldingsInc
Slide 18: Property & Casualty | Revenues
Property & Casualty | Revenues In Euro billion Gross revenues Price increases in Commercial Lines +1% 22% 48.8 48.7 19% 20% +1% 10% AXA XL Commercial 32.0 +2% 31.7 Insurance1 1Q20 2Q20 3Q20 4Q20 AXA XL 9% Personal 16.7 -1% 17.0 Reinsurance1 6% FY19 FY20 1 Jan 20 1 Jan 21 renewals renewals 18 Full Ye
Slide 19: Property & Casualty | Underlying earnings and profitability
Property & Casualty | Underlying earnings and profitability In Euro billion Underlying earnings Combined ratio -51% 99.5% 3.3 96.4% 3.1% -0.2 4.0% 4.2% -1.5 CY 94.7% 94.2% ex Covid-191 & Cats +0.3 -0.1 1.6 Covid-19 -0.2 Covid-191 & Current year PYD Investment Nat Cat higher Cats technical income PYD
Slide 20: Property & Casualty | Covid-19 impacts confirmed at €1.5bn
Property & Casualty | Covid-19 impacts confirmed at €1.5bn1 In Euro billion Post tax and net of reinsurance +0.8 Neutral impact from lockdown in 2H20, FR/EU with higher impacts in Commercial lines offset by frequency benefits in FR Retail lines -0.2 AXA XL AXA XL AXA XL Revision of policy -0.5 -0.6
Slide 21: Property & Casualty | AXA XL underlying earnings
Property & Casualty | AXA XL underlying earnings In Euro billion 2020 UE normalized 2021 UE target walk -0.2 -0.1 +0.5 1.2 0.1 1.0 US riots Excess Cats1 0.5 FY20 Underwriting More prudent Investment FY21E normalized & pricing Cat load income Covid 1.7 (net of claims trend) (ca. 6% load) -192 Euro 1.
Slide 22: Life & Savings | Revenues and net flows
Life & Savings | Revenues and net flows In Euro billion Gross revenues Net flows -6% 38.3 +1.6 EHQ 31.5 ▶ Protection +3.3 ▶ Unit-Linked +1.7 17.0 ▶ G/ASavings -3.4 FY19 FY20 22 Full Year Earnings 2020 | February 25, 2021
Slide 23: Life & Savings | Underlying earnings
Life & Savings | Underlying earnings In Euro million -7% Lower technical margin mostly in 1H20, including 2,508 extended disability covers, 77 2,338 lower annuities discount 11 rate, and lower surrender -241 -17 benefits Stable investment margin with lower yields offset by lower crediting rates Lowe
Slide 24: Health | Revenues and Underlying earnings
Health | Revenues and Underlying earnings Revenues in Euro billion Underlying earnings in Euro million Gross revenues Combined ratio Underlying earnings Individual/Group Loss ratio/Expense ratio +6% +0.5pt -1% 14.7 94.1% 94.5% 704 693 14.0 +7% +0.7pt +6% -0.2pt FY19 FY20 FY19 FY20 FY19 (excl. EQH) F
Slide 25: Asset management | Revenues and Underlying earnings
Asset management | Revenues and Underlying earnings Assets under Management in Euro billion Revenues and Underlying earnings in Euro million Assets under Management Gross revenues Underlying earnings +7% +4% +6% 858 1,269 279 801 1,225 264 +14% Alts FY19 (excl. EQH) FY20 FY19 (excl. EQH) FY20 FY19 (
Slide 26: Net income
Net income In Euro million Details of FY20 net income -18% 3,857 Underlying earnings 4,264 3,164 Net realized capital gains 337 Gains/losses on economic hedges1 -129 Change in fair value of AFSP&L assets -264 Exceptional and discontinued operations -487 Integration and restructuring costs -389 Goodw
Slide 27: Shareholders' equity
Shareholders’ equity In Euro billion 69.9 71.6 FY19 Shareholders' equity 69.9 Change in net unrealizedcapital gains1 +3.5 Net income for the period +3.2 Dividend (paid in July 20202) -1.7 Change in pension benefits -0.2 Forex and other -3.0 FY20 Shareholders' equity 71.6 FY19 FY20 27 Full Year Earni
Slide 28: Solvency II ratio at 200%
Solvency II ratio at 200% FY20: Solvency II ratio1 roll-forward 9M20 Solvency II ratio 180% Operating return +6 pts Dividend accrual -3 pts Market impact excl. forex +1 pt Debt repayment -1 pt Disposal of Central & Eastern Europe2 +2 pts AXA XL included in Group’s internal model +13 pts Other +3 pts
Slide 29: Assets | Portfolio management and investment yields
Assets | Portfolio management and investment yields Diversified and high quality assets FY20 portfolio yield1 FY20 Total General Account invested assets -17bps 2.8% 2.7% 80% Fixed Income €572bn FY19 FY20 FY20 Fixed Income reinvestment yield Government bonds (43%) Corporate bonds (28%) 2.6% Other Fix
Slide 30: Cash at Holding
Cash at Holding In Euro billion Main drivers of FY20 evolution 4.2 Net cash remittance from subsidiaries +4.8 3.0 Dividend paid in 2020 -1.7 Holding costs and interests -1.0 Disposal of Central and Eastern Europe +1.0 Debt repayment -1.7 Cash buffer rebuild at entities -1.4 Other1 +1.2 FY19 FY20 30
Slide 31: Financial debt
Financial debt In Euro billion Gross financial debt Debt gearing1 -2.0pts 19.1 28.8% 26.8% 16.6 25%-28% Target by 2020 FY19 FY20 FY19 FY20 31 Full Year Earnings 2020 | February 25, 2021 All notes are on pages 37, 38, 39 & 40 of this document.
Slide 32: Conclusion
3 Conclusion Thomas Buberl Group CEO
Slide 33: AXA demonstrates its strength in an unprecedented crisis
AXA demonstrates its strength in an unprecedented crisis Responsible actions towards our clients, our employees and society Very good business resilience thanks to preferred segments and operational continuity High underlying earnings, while supporting customers and the economy Strong balance sheet
Slide 34: Q&A session
Q&A session
Slide 35: AXA is a recognized sustainability leader
AXA is a recognized sustainability leader Score: AAA Sector Leader 2nd / 278 insurance companies 1 / 51 insurance companies in 2020 st in 2020 Included in Euronext Vigeo indices 2020: 2nd place “A+” 2020 UN PRI Scorecard Included in the Score: 88/100 (focus on Responsible Investment) Bloomberg Gende
Slide 36: Perimeter
Perimeter France: includes insurance activities, banking activities and holdings in France. Europe: includes Switzerland (insurance activities), Germany (insurance and banking activities, and holdings), Belgium (insurance activities and holdings), United Kingdom and Ireland (insurance activities and
Slide 37: Notes (1/4)
Notes (1/4) Changes at comparable basis are constant Forex,scope and methodologyfor activity indicators,and at constant Forex for earnings,unless otherwise specified. Page 5 1. Underlying Earnings (“UE”) is an APM. For further information, please refer to the reconciliation of these non-GAAP financi
Slide 38: Notes (2/4)
Notes (2/4) Page 11 1. % of general agents at AXA France using Salesforce©. 2. Source: Employee Net Promoter Score survey conducted by CulturelQ. 3. CultureIQ’s Global High Performing benchmark is made up of employees worldwide who work for firms recognized in widely respected reputation lists such
Slide 39: Notes (3/4)
Notes (3/4) Page 19 1. “Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. “Covid-19 claims” does not include any financial market impacts (including impacts oninves
Slide 40: Notes (4/4)
Notes (4/4) Page 29 1. Gross asset yield. 2. Mainly private equity and hedge funds, as well as illiquid equities. 3. Notably including real estate debtand CLOs. Page 30 1. Includes €0.8bn short-term commercial paper. Page 31 1. Debt Gearing is an APM. The calculation methodology of the Debt Gearing