Axa Sa · EURONEXT:CS
Axa Sa — FY2013 Earnings Presentation
49 slides from Axa Sa's earnings presentation, Feb 21, 2014
Slide 1: 2013 Full Year Earnings Press Conference
2013 Full Year Earnings Press Conference Paris – 21 February 2014
Slide 2: Cautionary note concerning forward-looking statements
Cautionary note 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 or objectives. Undue reliance should not be placed on such statements
Slide 3: AXA at a glance
AXA at a glance Regions Euro billion 91.2 revenues (1) Asia (excl. Japan) 8% International insurance 4% Japan 8.5% France Euro billion 1,113 assets under management (2) Insurance 24% Northern, Central & Underlying Eastern Europe Earnings(5) United States Euro billion 11% 4.7 underlying earnings (1)
Slide 4: Agenda
Agenda AXA’s transformation 1 page 5 5 Asset management page 31 is bearing fruit 2 Life & Savings page 15 6 Earnings snapshot page 36 3 Property & Casualty page 21 7 Financial strength page 40 4 France page 27 8 Concluding remarks page 43 4 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 5: AXA's transformation is bearing fruit
2013 Full Year Earnings 1 AXA’s transformation is bearing fruit Henri de Castries Chairman & Chief Executive Officer 5 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 6: Group increasingly profitable and accelerating transformation thanks to Ambition AXA
1 In 2013, the Group is increasingly profitable and accelerates its transformation thanks to Ambition AXA AXA’s transformation is bearing fruit 102 million customers 1st insurance brand worldwide for the 5th year in a row Revenues Solvency (1) + 2% 206% Underlying earnings + 18% 2013 Debt gearing (2
Slide 7: A performing business model
1 A performing business model Growth in all 3 lines of business AXA’s transformation is bearing fruit Growing business lines Growing earnings 6.2 6.3 4.7 Life 4.2 Underlying & Savings +5% APE earnings +18% comp. In euro billion comp. In euro billion FY12 FY13 FY12* FY13 28.3 28.8 5.2 4.5 Property Ad
Slide 8: Selectivity & Acceleration: an in-depth transformation of the Group
Selectivity & Acceleration: an in-depth transformation 1 of the Group Optimisation of the business mix in favour of more profitable segments AXA’s transformation is bearing fruit Life & Savings Property & Casualty New business sales (APE) Revenues in euro million in euro million 6,170 6,335 28,315 2
Slide 9: Capital optimisation
Selectivity & Acceleration: an in-depth transformation 1 of the Group Capital optimisation AXA’s transformation is bearing fruit ACCELERATION Life insurance 50% of the P&C insurer Investments Joint-Venture in China in China 0.5 bn € 0.5 bn € Minorities of Life & Savings over 5 years activities in As
Slide 10: Acceleration in high growth markets
Selectivity & Acceleration: an in-depth transformation 1 of the Group Acceleration in high growth markets AXA’s transformation is bearing fruit of the worldwide growth in the New markets 50% insurance sector stems from high growth markets High growth markets China Colombia* (Tian Ping) Life & Saving
Slide 11: Improved competitiveness to better serve our customers
With Ambition AXA, improved competitiveness to better serve 1 our customers AXA’s transformation € 1.2 bn savings, € 1.2 bn to be invested in 2014 is bearing fruit Improved competitiveness To better serve our customers Progress of the efficiency programme 2014 investment programme in euro billion In
Slide 12: Prevent, protect, repair
1 Prevent, protect, repair 160,000 employees supporting 102 million customers AXA’s transformation is bearing fruit euro billion increase in the value of our 25 customers’ Life Insurance invested assets euro billion in compensations paid to our 18 customers after a Property & Casualty claim euro bil
Slide 13: Prevent, protect, repair: transforming responsibility into actions
1 Prevent, protect, repair Leveraging our expertise to better transform our responsibility into actions AXA’s transformation is bearing fruit SINCE 1984 SINCE 2007 SINCE 2011 SINCE 2012 SINCE 2013 through through through research through through prevention research and education education innovation
Slide 14: Strong assets to support our digital transformation
1 Prevent, protect, repair Strong assets to support our digital transformation AXA’s transformation is bearing fruit A leader & pioneer in New services & Direct with 5 million offers: prevention, claim customers management, telematics Accessibility for our A unique brand, The priorities of our Custo
Slide 15: Life & Savings
2013 Full Year Earnings 2 Life & Savings Jacques de Vaucleroy Global Head of Life & Savings and Health CEO of the Northern, Central and Eastern Europe Region Member of the Management Committee 15 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 16: Scope overview: Life & Savings
2 Scope overview Life & Savings A balanced business mix 1st L&S insurer in Europe APE by activity in 2013 Unit-Linked Protection & Health 34% 39% € 6.3 bn APE 2013 Mutual Funds & 25 Euro billion increase in the value other 12% G/A Savings 14% of our customers’ Life Insurance invested assets A divers
Slide 17: New business sales by activity
2 New business sales by activity New business growth on priority market segments Life & Savings Protection & Mutual Funds Unit-Linked G/A Savings Health & other APE in Euro million APE in Euro million APE in Euro million APE in Euro million 2,445 2,489 2,164 1,977 +4% 1,044 comp. +14% 904 comp. 704
Slide 18: New business sales by market segment
2 New business sales by market segment Ongoing acceleration on high growth markets Life & Savings New Business Sales Mature Markets (APE) +4% 32% High growth markets (1) 17% France New business FY13 Margin 22% Sales (APE) on new business Japan 2013 vs. 2012 comp. 9% Northern € 6,335 m United States
Slide 19: Underlying earnings by activity (pre-tax)
2 Underlying earnings by activity (pre-tax) Strong progression Life & Savings Underlying earnings Underlying earnings by Life & Savings (pre-tax) activity (pre-tax) in Euro million 3,787 3,377 Protection & Unit-Linked Health 28% 55% +13% comp. G/A Savings 17% FY12* FY13 * Retrospectively restated fo
Slide 20: Underlying earnings (post-tax)
2 Underlying earnings (post-tax) Strong contribution by the United States and Japan to earnings growth Life & Savings Underlying earnings Underlying earnings by Life & Savings country/region In Euro million 2,793 2,603 Asia (excl. Japan) France 12% 25% Japan 16% United States +12% 19% comp. United K
Slide 21: Property & Casualty
2013 Full Year Earnings 3 Property & Casualty Jean-Laurent Granier Chairman & CEO of AXA Global P&C CEO of the Mediterranean and Latin America Region Member of the Management Committee 21 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 22: Scope overview: Property & Casualty
3 Scope overview Property & Casualty A balanced business mix 2nd P&C insurer in Europe FY13 revenues by activity (incl. International insurance) 1st international insurer in Asia* Commercial 37% 3rd Direct insurer in Europe Personal € 31.9 bn FY13 International 52% Revenues Insurance 11% 18 Euro bil
Slide 23: Revenues by market segment
3 Revenues by market segment Good momentum in high growth markets and Direct Property & Casualty Mature High growth Direct Total markets markets(1) in Euro million in Euro million in Euro million in Euro million 28,315 28,791 22,257 21,996 o/w Direct in the UK -4% o/w other countries (2) + 7% 4,520
Slide 24: Combined ratio
3 Combined ratio On track to reach the Ambition AXA target Property & Casualty Improved current-year Improved all-year combined ratio combined ratio 98.9% 97.8% 0.4% 0.8% -1.1 pts 97.7% 96.6% FY12* FY13 Natural disasters Prior Year Reserve + -1.1 pts FY12 FY13 -1.2% -1.2% FY12* FY13 * Retrospectivel
Slide 25: Large Corporate Risks
3 Large Corporate Risks Property & Casualty Strengthening in emerging One of the TOP European 5 markets (China, Hong Kong, Mexico…) players Revenues Combined Underlying earnings (post-tax) ratio in Euro million in Euro million 2,069 2,093 97.8% 97.7% 145 149 +2% -0.1 pt +4% comp. comp. 2012* 2013 FY
Slide 26: Underlying earnings (post-tax)
3 Underlying earnings (post-tax) Strong growth in all regions Property & Casualty P&C Underlying earnings by Underlying earnings country/region in Euro million Asia 2,105 3% Direct France 1,877 4% 26% Belgium 11% +13% comp. Switzerland 19% Medla region 13% Germany 14% United Kingdom & Ireland 10% FY
Slide 27: France
2013 Full Year Earnings 4 France Nicolas Moreau Chairman & CEO of AXA France Member of the Management Committee 27 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 28: AXA France in 2013
4 AXA France in 2013 France Diversified activities 15,000 employees (1) FY13 underlying earnings Distribution (after tax) Unit-Linked 4,200 tied agents (2) G/A Savings 24% 10% Protection & 20 Euro billion revenues Health 23% Property & Casualty 43% Increasing earnings Underlying earnings (after tax)
Slide 29: New business
4 New business Strong sales in our priority segments France Protection & Health Property & Casualty Revenue Revenues Revenue growth growth comp. +6% €6.3bn Success of the in 2013 comp. +3.1% “Multi PME” Success of dependency commercial range Success of the and funerary products for All year 2013 com
Slide 30: Transform customer relations and leverage regulatory evolution
4 Transform customer relations and leverage regulatory evolution France Becoming the best B2B and B2C digital provider 100% online car fleet management Twitter and Facebook customer service Web Creditor: 1st 100% online international management portal for credit insurance Offering a multi-acce
Slide 31: Asset Management
2013 Full-Year Earnings 5 Asset Management Denis Duverne Deputy Chief Executive Officer 31 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 32: Scope overview: Asset Management
5 Scope overview In the top 10 asset managers worldwide Asset Management Assets under management A culture of tailor-made solutions developed for Organised by « Investment Style » AXA + = Expertise in actively An expertise in equities and managed equity and fixed Alliance fixed income AXA IM
Slide 33: Assets under management roll-forward
5 Assets under management roll-forward Assets under management remain stable despite an unfavourable foreign Asset Management exchange rate Assets Under Management (AUM) roll-forward Scope: incl. -€22 bn linked to the disposal of AXA PE & -€5 bn in Euro billion linked to MONY 34 Assets under FY12 FY
Slide 34: Revenues and net flow evolution
5 Revenues and net flow evolution Growth of both revenues and average assets under management Asset Management Revenues Net flows in Euro million Average assets 12 under management +4% 3 3,343 3,461 FY12 FY13 +8% comp. Net flows FY12 FY13 Average assets under management +5% -4 -4 FY12 FY13 34 - AXA
Slide 35: Underlying earnings
5 Underlying earnings Growth driven by both asset managers Asset Management Underlying earnings Underlying earnings Asset Management by asset manager in Euro million Alliance Bernstein 46% 400 379 +8% comp. AXA IM 54% FY12 FY13 35 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 36: Earnings snapshot
2013 Full Year Earnings 6 Earnings snapshot Denis Duverne Deputy Chief Executive Officer 36 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 37: Underlying earnings
Underlying earnings 6 A balanced contribution of each business line to strongly Earnings increasing earnings snapshot Underlying earnings by business Group underlying earnings (pre-tax) (post-tax) in Euro million Property & Casualty and International Insurance 42% Protection & Health 4,728 26% 4,155
Slide 38: Adjusted earnings & Net income
6 Adjusted earnings & Net income Significant increase in both figures Earnings snapshot Adjusted earnings in Euro million 5,162 4,452 Adjusted earnings’s growth is mainly driven by higher underlying earnings and higher net realized capital +20% gains comp. FY12* FY13 Net income in Euro million 4,482
Slide 39: Dividend
6 Dividend Dividend is increasing by 13% Earnings snapshot Dividend In euro per share 0.81 0.72 Operating Free Cash Flows up to € 5.2 bn +13% Increased adjusted earnings FY12 FY13 To be paid on: May 7, 2014 Robust balance sheet Payout ratio (1) 40% 39 - AXA - 2013 Full Year Earnings – 21 February 20
Slide 40: Financial strength
2013 Full Year Earnings 7 Financial strength Denis Duverne Deputy Chief Executive Officer 40 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 41: Main financial strength indicators
7 Main financial strength indicators A robust balance sheet and a decreasing debt gearing Financial Strength 53.6 52.9 Mainly reflects mechanically lower Shareholders’ fixed income unrealized capital gains, equity partly offset by a higher contribution from net income. In Euro billion FY12* FY13 233
Slide 42: General Account invested assets
7 General Account invested assets Good diversification and quality of the investment portfolio Financial Strength Total insurance Changes in asset allocation invested assets Alternative Investments(2) Net inflows, investment income and Real Estate 5% 3% maturities: invested mainly in corporate Lis
Slide 43: Concluding remarks
2013 Full Year Earnings 8 Concluding remarks Henri de Castries Chairman & Chief Executive Officer 43 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 44: Concluding remarks
8 Concluding remarks Concluding Remarks 2013 Strong Performance, Solid Balance Sheet Successful Roll-out of A 3-Pillar Strategy on Track Ambition AXA Property & Casualty Digital Commercial Lines, Direct Further embed digital technologies in the business 2014 Life & Savings Data Individual Protection
Slide 45: Q&A Session
2013 Full Year Earnings ? Q&A Session 45 - AXA - 2013 Full Year Earnings – 21 February 2014
Slide 46: Key figures 2013
Key figures 2013 Appendices in Euro million unless otherwise noted Change Change on a reported basis on a comparable basis GROUP: KEY FIGURES FY12* FY13 Total revenues 90,126 91,249 +1% +2% Underlying Earnings 4,155 4,728 +14% +18% Adjusted Earnings 4,452 5,162 +16% +20% Net Income 4,057 4,482 +10%
Slide 47: SRI Ratings
SRI Ratings Appendices 2013 2013 Evolution Score global 81% (sector avge: 55%) Overall score 78% (sector avge.: 48%) +4 points Social 78% (sector avge: 61%) Social 69% (sector avge.: 40%) +4 points Environmental 80% (sector avge: 48%) Environmental 88% (sector avge.: 45%) +8 points Governance
Slide 48: Notes
Notes Page 3 1. Full Year 2013. 2. As of December 31, 2013. 3. As of December 31, 2013. 4. Interbrand ranking 2009 to 2013. 5. Full Year 2013 insurance underlying earnings (Life & Savings ; Property & Casualty : International Insurance). 6. Pre-tax Full Year 2013 underlying earnings, excluding holdi
Slide 49: Definitions
Definitions FY13 financial statements are subject to completion of audit procedures by AXA’s independent auditors. AXA's FY13 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at December 31, 2013. Adjusted earnings, underlying