Slide 1: Half Year 2018 Appendices
Half Year 2018 Appendices August 2, 2018
Slide 2: Important legal information and cautionary statements concerning forward-looking statements
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS 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, expectations or objectives. Un
Slide 3: Table of contents
Table of contents 1. GROUP OVERVIEW B.4 2. GEOGRAPHIES B.10 3. PROFITABILITY ANALYSIS B.26 4. BALANCE SHEET B.37 5. CORPORATE RESPONSIBILITY B.56 6. PRO-FORMA REPORTING SCOPE B.59 B3 Half Year 2018 Earnings l Appendices l August 2, 2018
Slide 4: Group overview
B1 Group overview
Slide 5: Revenues and underlying earnings by geography
Revenues and underlying earnings by geography 1H18 figures Revenues by geography Underlying earnings by geography Transversal1 6% Transversal1 8% International 6% International 6% France 23% France 24% US2 13% US 15% Euro 54 billion Euro 3.6 billion3 Asia 8% Europe 41% Europe 35% Asia 15% 1. Includi
Slide 6: AXA's rankings
AXA’s rankings FY17 figures1 Current engines High potentials #3 France #13 Spain #15 China #4 Thailand #2 Switzerland #14 Japan #2 Indonesia #2 Philippines3 L&S #8 Germany #6 Hong Kong L&S #3 Belgium #3 US (VA2) #9 Mexico #6 Italy #2 France #1 Ireland #20 Brazil #16 Thailand #1 Switzerland #6 Italy
Slide 7: Revenues and underlying earnings by line of business
Revenues and underlying earnings by line of business 1H18 figures Revenues by line of business Underlying earnings by line of business Asset management 4% Banking 0% Asset management 8% Banking 1% Health 8% Health 13% Euro 54 billion L&S 48% Euro 3.6 billion1 L&S 46% P&C 37% P&C 35% 1. Breakdown by
Slide 8: Life & Savings and Health | Distribution and product mix
Life & Savings and Health | Distribution and product mix 1H18 figures APE by channel APE by product Other 10% Funds & Other 9% Partnerships 19% Protection 35% Agents & salaried Unit-Linked 22% Euro 3.4 billion Euro 3.4 billion sales force 53% Brokers – IFAs & others 19% Health 16% G/A Savings 18% B8
Slide 9: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix 1H18 revenues excluding Health Revenues by channel Revenues by product Other 6% Direct 9% Partnerships 4% Non-Motor 57% Agents 37% Euro 18.8 billion Euro 18.8 billion Motor 43% Brokers – IFAs & others 45% B9 Half Year 2018 Earnings l Appendices l Au
Slide 10: Geographies
B2 Geographies
Slide 11: France | Topline overview
France | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +5% +12% 0% 656 2,175 4.0 4.0 623 1,882 201 Protection 193 Commercial 1.8 1.8 lines +2% G/A Savings 229 266 Personal -1% 2.2 2.2 Unit-Linked lines 201 189 Funds & Other 0 1 1
Slide 12: France | Profitability analysis
France | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +1.1 pts +0.7 pt -0.6 pt 93.6% 94.7% 98.0% 98.7% 94.3% 93.7% Loss ratio 69.4% 70.1% Loss ratio 68.1% 68.2% Loss ratio 80.6% 80.7% Expense ratio 24.1% 24.5% Expense ratio 26.3% 25.5% Expense ratio 17.4%
Slide 13: Europe | Topline overview
Europe | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +10% +4% +1% 587 2,788 2,830 9.9 9.7 488 Commercial 4.0 4.0 315 lines +3% Protection 245 G/A Savings 147 Personal 0% 138 5.9 5.7 lines Unit-Linked Funds & Other 90 107 15 17
Slide 14: Europe | Profitability analysis
Europe | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.1 pt -1.2 pts -0.6 pt 97.6% 97.6% 97.4% 96.2% 94.4% 93.9% Loss ratio 67.3% 66.8% Loss ratio 91.4% 91.0% Loss ratio 86.3% 85.5% Expense ratio 27.2% 27.1% Expense ratio Expense ratio 6.1% 6.7% 11.1% 1
Slide 15: Asia | Topline overview
Asia | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +4% +3% -4% 692 1,051 0.7 660 974 Commercial 0.1 0.6 lines -5% 0.1 Protection 488 490 Personal lines 0.6 0.6 -4% G/A Savings 196 157 Unit-Linked 9 12 1H17 1H18 1H17 1H18 1H17 1
Slide 16: Asia | Profitability analysis
Asia | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.6 pt -0.7 pt -1.1 pts 85.4% 86.0% 78.6% 77.7% 97.5% 96.5% Loss ratio 55.5% 54.0% Loss ratio 72.5% 70.3% Loss ratio 71.4% 69.3% Expense ratio 23.1% 23.7% Expense ratio 25.0% 26.2% Expense ratio 14.0% 1
Slide 17: US | Life & Savings profitability analysis
US | Life & Savings profitability analysis US Variable Annuity GMxB Underlying earnings1 US L&S APE4 (+4% vs. 1H17) In Euro million 1% 1% Net of DAC and tax2 FY16 FY17 1H17 1H18 12% 12% Variable Annuity base fees & other, less 48% 24% 20% 331 309 163 133 expenses3 GMxB hedge margin 13 69 18 71 21% 2
Slide 18: Group | Topline overview
Group | Topline overview L&S APE Health revenues P&C revenues1 In Euro million (excl. Health) In Euro million In Euro billion +5% +7% +1% 2,875 2,836 6,523 6,770 18.9 18.7 Protection 1,085 +2% 1,169 Commercial 9.4 9.3 lines G/A Savings 614 610 0% Unit-Linked 845 Personal 741 lines 9.5 9.3 Funds and
Slide 19: Group | Profitability analysis
Group | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.6 pt -0.3 pt -0.8 pt 96.8% 96.2% 95.1% 94.9% 95.7% 95.0% Loss ratio 68.9% 68.1% Loss ratio 82.4% 81.4% Loss ratio 78.2% 78.0% Expense ratio 26.8% 26.9% Expense ratio 14.4% 14.8% Expense ratio 16.8% 1
Slide 20: Group | Underlying earnings by geography and details by business line
Group | Underlying earnings by geography and details by business line Underlying earnings 1 o/w o/w o/w o/w Asset Total Life & Savings Property & Casualty Health Management (In Euro million) 1H18 Change 1H18 Change 1H18 Change 1H18 Change 1H18 Change France 816 +9% 457 +17% 325 0% 39 -5% - - Europe
Slide 21: Group | Net flows
Group | Net flows 1H18 figures L&S: Euro +1.6 billion Health: Euro +1.6 billion P&C NNC: -45k contracts in Euro billion in Euro billion in thousands of contracts +1.2 +0.6 +0.6 +58 +0.9 +0.8 +0.5 +0.2 +1 -19 0.0 o/w non-GMxB +0.9 o/w GMxB -2.6 -1.3 -0.1 -85 France Europe Asia US International France
Slide 22: L&S and Health | APE, NBV and NBV margin by geography
L&S and Health | APE, NBV and NBV margin by geography 1H18 APE by product Total APE NBV NBV margin Mutual Change on a Change on a Change on a G/A Unit- 1H17 1H17 1H17 In Euro million Protection % % % Health1 % funds & % 1H18 comparable 1H18 comparable 1H18 comparable Savings Linked restated2 restate
Slide 23: P&C | Revenues by business line
P&C | Revenues by business line 1H18 figures Personal Motor Personal Non-Motor Commercial Motor Commercial Non-Motor Change on Change on Change on Change on In Euro million Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis
Slide 24: P&C | Price effect by geography
P&C | Price effect by geography Personal Lines Commercial Lines Price Revenues Price Revenues In Euro million Revenues effect growth Revenues effect growth 2018 Market pricing trends Increase in prices in personal lines and increased pressure on prices in France 2,213 +1.5% -1.0% 1,788 +2.2% +2.0% c
Slide 25: Asset management | Asset under management rollforward
Asset management | Asset under management rollforward 1H18 figures Assets under Management rollforward AXA IM - Fully AXA IM - Asian Joint In Euro billion AB AXA IM Total consolidated scope Ventures AUM as of December 31, 2017 468 746 640 106 1,214 Net flows -8 13 13 -1 +4 Market appreciation -4 -3
Slide 26: Profitability analysis
B3 Profitability analysis
Slide 27: Profitability analysis | Group underlying earnings margin analysis
Profitability analysis | Group underlying earnings margin analysis In Euro million 1H18 Change 1H18 Change 1H18 Change Investment margin 2,341 -1% Fees & revenues 4,101 +10% Net technical margin 6,306 +8% + + + - Acquisition expenses 5,304 +7% - Administrative expenses 3,126 +3% - VBI amortization 3
Slide 28: Profitability analysis | Group underlying earnings margin analysis by country
Profitability analysis | Group underlying earnings margin analysis by country In Euro million Total France Europe Asia US International Transversal Central Holdings Margin on 2,447 696 457 941 238 116 0 - revenues Investment 2,341 825 920 19 256 189 132 - margin Management fees 1,436 270 97 62 975 2
Slide 29: Underlying earnings by business | A predominantly P&C, Protection and Health company
Underlying earnings by business | A predominantly P&C, Protection and Health company 11% 25% Asset management & other2 Savings3 Pre-tax underlying earnings 1H17 1H18 Change Health 354 388 +15% P&C 1,785 1,856 +7% 8% Protection 835 864 +10% Health 1H181 18% Savings 1,093 1,176 +13% Protection Asset m
Slide 30: Profitability analysis | L&S underlying earnings margin analysis
Profitability analysis | L&S underlying earnings margin analysis In Euro million 1H18 Change 1H18 Change 1H18 Change Investment margin 1,229 -2% Fees & revenues 3,339 +10% Net technical margin 549 +51% Average G/A reserves 341,667 +2% o/w Unit-Linked management fees 1,436 +14% o/w Mortality & morbid
Slide 31: Profitability analysis | P&C underlying earnings margin analysis
Profitability analysis | P&C underlying earnings margin analysis In Euro million 1H18 Change 1H18 Change Investment income 1,052 -2% Technical margin 5,094 +5% Average assets 2 70,383 -1% Gross earned premium 15,953 +2% Average yield 2,3 3.0% 0.0 bps AY Loss ratio 68.1% -0.8pt CY Loss ratio 70.2% +0
Slide 32: Profitability analysis | Details on P&C current year loss ratio
Profitability analysis | Details on P&C current year loss ratio Personal Motor Personal Non-Motor 74.3% +0.1pt +2.5pts 63.7% +0.6pt 73.5% +1.2pts 61.2% -0.4pt -0.9pt -0.5pt -0.8pt 1H17 Nat Cat Price effect Freq & Sev Other1 1H18 1H17 Nat Cat Price effect Freq & Sev Other1 1H18 Total Commercial lines
Slide 33: Profitability analysis | Focus on P&C reserves
Profitability analysis | Focus on P&C reserves Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 2.0% 1.7% 2.1% 1.8% 1.8% 1.9% 2.1% 0.9% 1.4% 1.2% 1.2% 1.3% 1.4% 1.3% 1.2% 0.6% 0.8% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13
Slide 34: Profitability analysis | Health underlying earnings margin analysis
Profitability analysis | Health underlying earnings margin analysis In Euro million 1H18 Change 1H18 Change 1H18 Change Investment income 59 +38% Fees & revenues 762 +7% Technical margin 662 +11% Gross earned premiums: 6,490 (+7%) AY Loss ratio: 78.0% (-0.5pt) + + + - Acquisition expenses 744 +10% A
Slide 35: Profitability analysis | Asset management underlying earnings margin analysis
Profitability analysis | Asset management underlying earnings margin analysis Expenses In Euro million 1H18 Change2 1H18 Change2 Net revenues3 1,830 +8% Asset Management expenses 1,298 +4% o/w performance fees Euro 50 million (+81%) o/w research fees Euro 182 million (-1%) Margin1 Expenses1 Distribu
Slide 36: Cost savings | Halfway through our cost savings target
Cost savings | Halfway through our cost savings target 2017 2018 Euro 0.3 billion1 from leaner central functions will be 46% 2016 2019 phased in over FY18 and FY19 2015 completion rate1 2020 Ambition 2020 Euro 1.0 billion +3% FY16-1H18 Cost savings contribution to 2015 – 2020E UEPS CAGR from cost sa
Slide 37: Balance Sheet
B4 Balance Sheet
Slide 38: Balance sheet
Balance sheet 1. General Account invested assets B.39 I. Government and corporate bonds by rating B.40 II. Government Bonds and related B.41 III. Corporate Bonds B.42 IV. Asset Backed Securities B.43 V. Listed Equity B.44 VI. Real Estate B.45 VII. Hedge Funds B.46 VIII. Private Equity B.47 IX. Mortg
Slide 39: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY17 % 1H18 % Changes in asset mix In Euro billion Fixed income 474 82% 476 80% o/w Govies and related 232 40% 230 38% Forex: positive impact from the depreciation o/w Corporate bonds 196 34% 201 34% of Euro against major o/w Asset backed securi
Slide 40: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds1 Below investment Non rated (2%) grade (6%) 12% AAA 16% 25% AAA BBB Euro 230 Euro 201 12% AA billion 38% billion 16% BBB A 40% AA 32% A Average rating maintained in the AA range Average rating maintained in the A r
Slide 41: Government bonds and related
Government bonds and related Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Ireland 2% Other 7% 36.9 Netherlands 2% 34.8 Austria 3% France 22% Supranational Institutions 5% Switzerland 6% Euro 230 billion Spain 6% Japan 14% Belgium 8% Germany 10% US 8% FY17 1H18 It
Slide 42: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Technology 3% Other 3% Basic materials 3% Consumer 7.3 Cyclical 5% Financials 6% Banks 35% Energy 6% 4.0 Euro 201 billion Communications 7% Industrials 8% FY17 1H18 Consumer Utilities 8% non-cyclical 15%
Slide 43: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment Non rated/Equity 3% grade 2% BBB 0.3% CLO 91% A 17% US Subprime, Alt-A & NC RMBS 1% Prime RMBS 2% Euro 12 billion Commercial MBS 0.3% Euro 12 billion CDO 1% Consumer ABS2 3% Other ABS 1% AA 23% AAA 55% 1. Including
Slide 44: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Rest of the 4.7 World 16% US 20% 4.0 Other European countries 12% Euro 20 billion UK 3% Switzerland 5% France 24% Belgium 6% FY17 1H18 Germany 7% Japan 8% As of June 30, 2018 1. Gross o
Slide 45: Real estate investments
Real estate investments Defensive portfolio with good performance over the long term Breakdown by geography Breakdown by type and geography Japan 1% Other 2% US 3% UK 4% Switzerland 33% Belgium 9% Switzerland France Belgium Germany Other Total Office 11% 10% 6% 4% 9% 40% Other Residential 18% 2% 0%
Slide 46: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 10 managers Multi-Strategy Relative value credit 9% program 30% Real asset cash flow 12% Market value Alternative Credit program Short dated carry 66% Euro 9 billion Deep value credit 12% 70% Multi-St
Slide 47: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Other 8% Venture 6% Japan 3% Mezzanine 11% Infrastructure 15% Buy-out 68% US 29% Market value Euro 10 billion Diversified portfolio Europe 61% Direct 49% Funds of funds 51% As of June 30, 2018 B47 Half Ye
Slide 48: Mortgage loans & other
Mortgage loans & other Low risk mortgage loan portfolio 1H18 market value by entity1 33% 20% Switzerland Germany Other 9% 47% Residential Switzerland 33% 86% Residential France 9% 53% Commercial 14% Commercial Market value2 30% 9% Euro 34 billion United States France 22% Agricultural 20% Residential
Slide 49: Focus on net unrealized capital gains
Focus on net unrealized capital gains Balance sheet net unrealized capital gains Off balance sheet net unrealized capital gains In Euro billion In Euro billion 16.0 2.5 13.8 4.8 4.7 2.0 2.3 Equities & other1 0.8 Corporate bonds 11.5 10.7 Government bonds and related FY17 1H18 FY17 1H18 3.4 2.6 2.5 N
Slide 50: Asset & Liability management (1/2)
Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 P&C yield2 -11 bps 71 bps 69 bps 3.4% 3.3% Average Yield on Spread above 1H18 guaranteed assets guarantee rates Inforce 3.2% 1.8% +140 bps New business 2.4% 0.3% +210 bps 1H17 1H18 1H17 1H18 • Significant buffer
Slide 51: Asset & Liability Management (2/2)
Asset & Liability Management (2/2) Life & Savings General Account investment spreads above guarantees for main entities France Germany Switzerland Belgium AXA MPS 310 bps 80 bps 130 bps 50 bps 140 bps Inforce 3.7% 3.7% 2.9% 4.0% 1.6% 1.1% 2.7% 2.5% 0.6% 1.1% business 180 bps 110 bps 110 bps 110 bps
Slide 52: Net financial debt – Long-term maturities
Net financial debt – Long-term maturities Net financial debt Contractual maturity breakdown In Euro billion In Euro billion 1.3 Debt 4.3 25% 29% 2.1 gearing Euro +3.2 billion debt 2.9 21.7 raised at AEH Euro +2.0 billion debt 0.4 1.4 5.1 4.6 raised at AXA S.A. 16.2 7.5 2018 2019 2020 2021-2025 2026-
Slide 53: Adjusted ROE
Adjusted ROE In Euro million (unless otherwise noted) 1H17 1H18 Adjusted earnings 3,478 3,628 Interest charges on undated debt1 -117 -115 Average adjusted shareholders’ equity 45,782 45,142 Adjusted ROE2 (%) 14.7% 15.6% 1. Includes financial charges related to undated subordinated debt (recorded thr
Slide 54: Solvency II
Solvency II Solvency II ratio1 Key sensitivities In Euro billion Ratio as of June 30, 2018 233% 205% 233% Interest rate +50bps 238% +5 pts 57.8 61.0 Interest rate -50bps 224% -9 pts 28.2 26.2 Available capital 231% Corporate spreads +50bps -2 pts Required capital Equity markets +25% 230% -3 pts FY17
Slide 55: Solvency II required capital
Solvency II required capital Split by Risk, Geography & Business Required capital by risk Required capital by business Required capital by geography 1H18 FY17 FY17 Asset management, Operational Asset Management & Banking Banking & other UK Transversal & Counterparty 4% 5% 6% Holdings & Other Italy &
Slide 56: Corporate Responsibility
B5 Corporate Responsibility
Slide 57: Main SRI rating
Main SRI rating 6th overall/worldwide and 1st insurer by number of SRI funds in its capital (Ipreo, Q3 2017) 2016: Sector Leader “A+” in the 2017 UN PRI Reporting Score: A- 1st on 37 insurance companies (Responsible Investment Strategy) Level Score: « Leadership » Included in Euronext Vigeo indexes
Slide 58: ESG integration into investments
ESG integration into investments AXA’s “ESG + Carbon” RI Strategy “ESG + CARBON” INTEGRATION SECTOR GUIDELINES & EXCLUSIONS IMPACT INVESTING • Long-term ESG integration process: gradual and • Current sector exclusions: • Impact investment” funds systematic integration of tangible ESG factors in AXA’
Slide 59: Pro-forma reporting scope
B6 Pro-forma reporting scope
Slide 60: Pro forma figures (former reporting scope) | Revenues and underlying earnings
Pro forma figures (former reporting scope) | Revenues and underlying earnings Revenues 1H17 1H18 Underlying earnings 1H17 1H18 Life & Savings 26,671 25,873 Life & Savings 1,758 1,653 (+) Health 4,447 4,716 (+) Health 226 220 (=) Life & Savings inc. Health (former scope) 31,118 30,589 (=) Life & Savi
Slide 61: Pro forma figures (former reporting scope) | Other indicators
Pro forma figures (former reporting scope) | Other indicators P&C profitability 1H17 1H18 P&C current year combined ratio 96.6% 97.1% Impact of Health +0.3 pt +0.0 pt P&C current year combined ratio incl. Health (former scope) 96.9% 97.1% P&C all-year combined ratio 95.7% 95.0% Impact of Health +0.3