Slide 1: Full Year Earnings 2019
Full Year Earnings 2019 Press conference February 20, 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 performance 3 Summary of earnings & Financial strength 4 Concluding remarks 3 Full Year Earnings 2019 | February 20, 2020
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO
Slide 5: Achievements towards our Ambition 2020
Achievements towards our Ambition 2020 Focus Transform Growth Change in risk profile Across preferred segments and Full exit from Equitable Holdings Inc.1, major markets Swiss Group Life Transformation, integration of XL Simplification Customer Disposal of AXA Bank Belgium, NPS at 75% (+21pts), oper
Slide 6: Strong operational performance in 2019
Strong operational performance in 2019 Revenues Underlying earnings per share1 Continued growth momentum in our preferred segments and € 104 bn € 2.59 major markets Increased profitability, +5% +5% thanks to our technical excellence Deleveraging, solvency, risk profile: Solvency II ratio2 Dividend s
Slide 7: Continued organic growth momentum…
Continued organic growth momentum… Notably driven by preferred segments Revenues € 104 bn P&C Commercial (32% of revenues1) Health (14% of revenues1) Protection (16% of revenues1) +5% +7% +6% +4% 7 Full Year Earnings 2019 | February 20, 2020 All notes are on pages 32 & 33 of this document.
Slide 8: … coupled with an overall strong technical profitability
… coupled with an overall strong technical profitability P&C Health Protection Combined ratio Combined ratio Combined ratio 96.4 % 94.1 % 93.2 % 8 Full Year Earnings 2019 | February 20, 2020
Slide 9: Continued operating growth across markets
Continued operating growth across markets* Underlying earnings France Europe € 1.7 bn € 2.5 bn +9% +1% Asia & International AXA XL € 1.7 bn € 0.5 bn +6% 9 Full Year Earnings 2019 | February 20, 2020 *Geographical scope details are on page 31.
Slide 10: Priority | Disposal of Equitable Holdings Inc. and deleveraging
Priority | Disposal of Equitable Holdings Inc. and deleveraging Full exit of Equitable Holdings Inc. Reducing debt gearing2 Economic ownership1 32% 51% $ 5.7 bn 29% Target Proceeds 25% - 28% On track to achieve the lower end by 2020 0% January December FY18 FY19 10 Full Year Earnings 2019 | February
Slide 11: Priority | Continued integration of AXA XL
Priority | Continued integration of AXA XL Strong topline growth in 2019: +10% gross revenues ▶ Contribution from revenue synergies and hardening cycle with strong and accelerating price increases in 2019 and into 2020 Adequate reserves at AXA XL: Euro 0.8 billion unallocated excess reserves at FY19
Slide 12: Priority | To become our customers' partner
Priority | To become our customers’ partner Health vertical integration AXA ING partnership AXA Climate Creation in our fast-growing markets Deployment of an international Development of parametric solutions of a health ecosystem combining healthcare and innovative digital protection to protect agai
Slide 13: Commitment | Act to fight climate change
Commitment | Act to fight climate change As an As an As a coalitions investor & asset manager insurer builder Euro 24 billion Tightening of coal Net Zero Asset Green investment target doubled underwriting policy Owner Alliance Share our expertise on metrics and methodologies to align investment Tran
Slide 14: Ambition 2020 | Fully on track to deliver on our main targets
Ambition 2020 | Fully on track to deliver on our main targets Underlying earnings per share1 Free cash-flows2 +5% 25 bn Ambition Ambition 2020 2020 3% - 7% € € 28-32 bn CAGR Target range 2015 - 2019 CAGR Cumulative 2016 - 2019 Adjusted return on equity Solvency II ratio 16% 198% Ambition Ambition 20
Slide 15: Business performance
2 Business performance Jacques de Peretti Chairman and CEO of AXA France
Slide 16: France
France Gross Net flows across preferred segments revenues +4% In Euro billion In Euro billion 26.2 ▶ P&C stable 25.2 +1.4 ▶ Health +6% +0.7 +0.6 +0.2 ▶ L&S +5% FY18 FY19 Protection Health Unit-Linked G/A Savings Underlying earnings +9% In Euro billion 1.7 ▶ P&C +24% P&C Combinedratio Health Combined
Slide 17: France
France Clients Simplicity Social commitments Personalize and enhance Innovate to serve Be a responsible the customer relationship our clients corporate citizen Personalized and proactive claims New, simpler and more competitive Employees committed to social management offers: MonAuto, MaMaison cause
Slide 18: Business performance
Business performance Etienne Bouas-Laurent Group CFO
Slide 19: Europe
Europe Gross revenues +4% In Euro billion 36.5 34.4 ▶ P&C +3% UK P&C Germany Health Italy L&S ▶ Health +4% +4% +4% +17% +6% Price and new Positive price Unit-Linked and G/A ▶ L&S business in Motor effect Savings FY18 FY19 Underlying earnings +1% P&C Health L&S +10% Combinedratio Combinedratio In Eur
Slide 20: Asia & International
Asia & International Gross revenues +5% In Euro billion 15.5 16.9 ▶ P&C +5% Turkey P&C Mexico Health Hong-Kong Protection ▶ Health +8% +18% +16% +10% +3% From both Personal New large Growth in broker ▶ L&S and Commercial accounts and agency FY18 FY19 Underlying earnings +6% P&C Health L&S +29% Combi
Slide 21: AXA XL
AXA XL FY19 results impacted by Favorable pricing Reducing risk and earnings Nat Cat and social inflation momentum volatility in 2020 € 507M FY19 Underlying earnings +10% FY19 gross revenues ▶ Above normalized Nat Cat charges In Euro billion FY19 Change Pricing1 ▶ Reduced Property Nat Cat exposure,
Slide 22: AXA IM
AXA IM Alternatives Underlying earnings (Asssets under management) In Euro million € 137 bn (+13%) -3% ▶ Higher assets under Real Assets: #1 in Europe, #5 worldwide management to 270 264 € 801 bn (+10%) Cost income ratio ▶ Revenues were down -0.2pt 2% to € 1.2 bn, primarly from lower performance fee
Slide 23: Summary of earnings & Financial strength
3 Summary of earnings & Financial strength
Slide 24: Underlying earnings
Underlying earnings In Euro million +2% FY18 FY19 Change France 1,573 1,715 +9% Europe 2,496 2,544 +1% 6,451 6,182 Asia & International 1,503 1,670 +6% By market AXA XL -233 507 - United States 1,125 444 - Transversal & Central Holdings -282 -429 - Property & Casualty 2,207 3,341 +12% Life & Savings
Slide 25: Net income & dividend
Net income & dividend Net income Dividend In Euro million In Euro per share +75% +7% Underlying earnings 6,451 Net realized capital gains 393 1.43 3,857 1.34 Change in fair value & forex1 -791 Exceptional & discontinued -1,634 2,140 operations* Integration & restructuring costs -449 Other2 -114 Net
Slide 26: Main financial strength indicators
Main financial strength indicators Shareholders’ equity Solvency II ratio1 Financial strength ratings In Euro billion 198% AA- 69.9 193% stable 62.4 Aa3 stable AA- positive FY18 FY19 FY18 FY19 26 Full Year Earnings 2019 | February 20, 2020 All notes are on pages 32 & 33 of this document.
Slide 27: Concluding remarks
4 Concluding remarks Thomas Buberl Group CEO
Slide 28: 2019 | Achievements towards AXA's Ambition 2020 and strong operational performance
2019 | Achievements towards AXA’s Ambition 2020 and strong operational performance ▶ Continued growth momentum, notably in our preferred segments ▶ Increased profitability ▶ Strength of the balance sheet thanks to our strategic actions ▶ Innovation, expertise and financial strength to help customers
Slide 29: Q&A session
Q&A session
Slide 30: SRI / ESG market recognizes AXA as a sustainability leader
SRI / ESG market recognizes AXA as a sustainability leader AXA is the 1st insurer by number of SRI funds in its capital 1 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
Slide 31: Scope
Scope 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 hol
Slide 32: Notes (1/2)
Notes (1/2) Page 5 1. Excluding the 44,162,500 shares of common stock of Equitable Holdings, Inc. (“EQH”), primarily related to the EQH shares to b e delivered on redemption of the AXA S.A. bonds mandatorily exchangeable into EQH shares, maturing in May 2021. Page 6 1. Underlying earnings per share
Slide 33: Notes (2/2)
Notes (2/2) Page 14 1. Underlying earnings per share and Adjusted Return on Equity are APMs. For further information, please refer to the reconciliation of these non-GAAP financial measures to the financial statements and to their definitions in the Glossary, which are provided in AXA’s 2019 Activit