Axa Sa · EURONEXT:CS
Axa Sa — Investor Day (November 2014)
21 slides from Axa Sa's investor day presentation, Nov 20, 2014
Slide 1: Inforce Management: A strategic asset
INFORCE MANAGEMENT A strategic asset Investor Day November 20, 2014 Paul EVANS – CEO of AXA UK & Ireland Member of the AXA Group Executive Committee
Slide 2: 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 because, by their nature, they are subject to known and
Slide 3: Today's key messages
TODAY’S KEY MESSAGES AXA’S INFORCE PORTFOLIO, A STRATEGIC ASSET DEMONSTRATED EXECUTION CAPACITY WHAT’S NEXT C3 | AXA Investor Day – Inforce Management | November 20, 2014
Slide 4: AXA's inforce portfolio, a strategic asset
AXA’s inforce portfolio, a strategic asset
Slide 5: AXA's inforce portfolio is a material pool of value
AXA’S INFORCE PORTFOLIO IS A MATERIAL POOL OF VALUE SOURCES OF VALUE #2 INFORCE BOOK FY13 data Life & Savings technical reserves2 Euro billion In Euro billion 28 Value In Force As of December 31, 2013 Peer 1 534 Euro billion 4.3 Expected inforce surplus generation AXA 494 Euro billion 2.9 Underlying
Slide 6: Addressing customers' evolving needs through a win-win relationship
ADDRESSING CUSTOMERS’ EVOLVING NEEDS THROUGH A WIN-WIN RELATIONSHIP Value Value for 1980 1995 2013 for customers shareholders Constant progression 8.2% 9.0% 6.3% Higher ROE in health Up-sell expenditures1 Protection & Enhanced benefits in % of GDP case of Health add-ons Risk diversification illness,
Slide 7: Delivering flexibility for customers
DELIVERING FLEXIBILITY FOR CUSTOMERS INVESTMENT DIVERSIFICATION LIQUIDITY OPTION AXA AXA Additional return from holding hybrid vs. pure GMxB buy-out offer France US G/A Savings products ca. 260 bps HIGHER RETURN1 >13% TAKE-UP RATE >30% 31% TAKE-UP RATE EQUIP. RATE AXA AXA INVESTMENT DIVERSIFICATION
Slide 8: Delivering on ambition AXA objectives
DELIVERING ON AMBITION AXA OBJECTIVES AMBITION AXA OBJECTIVES ACHIEVEMENT ADDITIONAL UNDERLYING EARNINGS +€250m +€280m VS. 20101 as of 2015E as of 2013 L&S ADJUSTED RETURN ON 11% 12% EQUITY2 as of 2015E vs. 9% as of 2010 as of 2013 1. Additional yearly recurring underlying earnings from inforce mana
Slide 9: Demonstrated execution capacity
Demonstrated execution capacity
Slide 10: A systematic review of our inforce portfolio
A SYSTEMATIC REVIEW OF OUR INFORCE PORTFOLIO … enabling a systematic A segmented inforce journey… customized portfolio review 1 30% of Transform/ FURTHER ENGAGE WITH OUR inforce Exchange CUSTOMER BASE 30% 2 ADAPT TO CURRENT FINANCIAL & MARKET ENVIRONMENT 50% 3 TRANSFORM ORGANIZATION, PROCESSES AND I
Slide 11: Further engage with our customer base
1 FURTHER ENGAGE WITH OUR CUSTOMER BASE EARN CUSTOMER PROMOTE ALTERNATIVE OFFER LIQUIDITY SCREEN CUSTOMER LOYALTY VALUE PROPOSALS NEEDS Tied agents maintain Targeting 280,000 Targeting 14,000 clients Targeting Group Life regular relationships with inforce clients holding end customers customers a tr
Slide 12: Maintain profitability in current environment
MAINTAIN PROFITABILITY IN CURRENT ENVIRONMENT 2 ADAPT TO CURRENT FINANCIAL & ADJUST EXPENSES TO COMPETITVE 3 MARKET ENVIRONMENT ENVIRONMENT Proactively adjusted crediting rates in Continental Identified specific portfolios (i.e. closed books) and Europe1 and US, despite heavy commercial pressure per
Slide 13: Unlock and accelerate cash flows
4 UNLOCK AND ACCELERATE CASH FLOWS Euro 1.5 billion remittance to Group holding over 2011-2014E including the closed MONY portfolio transaction which will contribute Euro 0.6 billion to US internal debt repayment 1 Traditional Upon strategic inforce Capital review Disposal management engineering Inc
Slide 14: A competitive edge and a more balanced culture between inforce and new business
A COMPETITIVE EDGE AND A MORE BALANCED CULTURE BETWEEN INFORCE AND NEW BUSINESS PEOPLE & AXA’S PROPRIETARY LONG TERM GOVERNANCE NETWORKS SUSTAINABILITY More than 200 FTEs in Strong competitive Embedding inforce dedicated inforce advantage to foster management in the management teams direct interacti
Slide 15: What's next
What’s next
Slide 16: An initiative started in 2011 which has more potential
AN INITIATIVE STARTED IN 2011 WHICH HAS MORE POTENTIAL WE ARE READY TO ENTER INTO OUR 3RD PHASE OF MATURITY PHASE 3 Fully Embedded PHASE 2 Beyond 2015 PHASE 1 Dedicated, but not embedded Inforce as a ‘project’ 2014-2015 2011-2013 Inforce Management as a Dedicated management team Fully embedded withi
Slide 17: The more we search, the more we find
THE MORE WE SEARCH, THE MORE WE FIND 2011 2012 2013 2015E Going forward Entities in 12 13 Expand to additional 6 7 scope entities BROADENING SCOPE OF ACTIVITY 250+ Pipeline of 150 Additional products opportunities 20 (Protection & Health, …) 400+ TRANSLATED In Euro million 2015E target updated from
Slide 18: Foster customer centricity and explore disruptive solutions
FOSTER CUSTOMER CENTRICITY AND EXPLORE DISRUPTIVE SOLUTIONS Foster customer centricity Explore disruptive solutions Reinforce our customers Pool Life & Savings knowledge reserves through internal Develop data analytics LEVERAGE CENTRAL RISK reinsurance for European entities capability DIGITAL
Slide 19: Concluding remarks
CONCLUDING REMARKS INFORCE MANAGEMENT AT AXA IS… …an …a …key …a opportunity framework for earnings competitive to better serve to mitigate risks resilience and advantage as customers in old books capital efficiency first mover INFORCE MANAGEMENT AT AXA WILL… …increase …be fully …support creating …tr
Slide 20: Appendix
Appendix
Slide 21: Biography: Paul Evans
BIOGRAPHY PAUL EVANS GROUP CEO, AXA UK Paul Evans is Group Chief Executive of AXA UK & Ireland and member of the AXA Group Executive Committee. He has previously held the roles of Chief Financial Officer for AXA UK and Chief Executive of AXA Life UK. Paul is also the sponsor of the Group Inforce i