Slide 1: Full Year Earnings 2018
Full Year Earnings 2018 Press conference February 21, 2019
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 2. Business performance 3. Summary of earnings & Financial strength 4. Concluding remarks 3 Full Year Earnings 2018 | February 21, 2019
Slide 4: Introduction
Introduction Thomas Buberl Group CEO
Slide 5: 2018 | A pivotal year in our Focus and Transform strategy
2018 | A pivotal year in our Focus and Transform strategy Gross Underlying revenues earnings1 AXA delivered another year of strong operating performance € 103 bn € 6.2 bn Underlying earnings is at its highest ever reported level +4% +6% The risk profile of the group is Solvency II Dividend deeply tr
Slide 6: Strong revenue growth, notably in preferred segments
Strong revenue growth, notably in preferred segments +5 % P&C Gross revenues P&C Commercial Combined ratio 97.0% 2018 26% of revenues1 +0.8 pt 103 +3 % Protection Protection Combined ratio 95.6% 19% of revenues1 -1.3 pts € bn +7 % Health Health Comined ratio 94.4% 11% of revenues1 +4% -0.4 pt 6 Full
Slide 7: Strong operating growth across the Group
Strong operating growth across the Group1 France Europe US € 1.6 bn € 2.5 bn (AXA Equitable Holdings) Asia +10% +10% € 1.1 bn € 1.1 bn +4% AXA XL International +5% & Transversal2 € -0.2 bn € 0.8 bn (Includes 4Q18 for XL and FY2018 for ACSA and AXA Art) +24% 7 Full Year Earnings 2018 | February 21, 2
Slide 8: AXA XL | Fast progress on integration and good business momentum
AXA XL | Fast progress on integration and good business momentum Earnings enhancement levers underway Supportive business momentum Integrated reinsurance program in place for 2019, 10% revenues growth in 2018, with rate increase aligned with AXA Group risk appetite leading the market Commercial appr
Slide 9: Build the new AXA by investing in key markets and innovation
Build the new AXA by investing in key markets and innovation P&C Commercial Lines China Innovation Creation of Acquisition of Telemedecine: AXA XL the remaining 50% stake in leader in France with services AXA Tianping1 from AXA Partners and Qare #1 global P&C commercial lines #1 foreign P&C insurer
Slide 10: Build the new AXA by reducing our exposure to financial risks
Build the new AXA by reducing our exposure to financial risks Transformation of IPO in the US Swiss group life business AXA Life Europe Successfully completed the IPO Transformation of in-force Signed disposal and secondary offering of Swiss Group Life business of its European AXA Equitable Holdings
Slide 11: A new AXA with a transformed risk profile and enhanced strength
A new AXA with a transformed risk profile and enhanced strength A dominant actor in P&C, Health and Protection 20-30% reduction in economic sensitivities (Underlying earnings by activity) from financial shocks In points of Solvency II ratio 10% 19% Health L&S and Asset -5 Management -8 New AXA 1, 2
Slide 12: Responsible insurer striving for a stronger and safer society
Responsible insurer striving for a stronger and safer society Climate Health and Economic AI and change disease prevention inclusion Responsible Data AXA XL adopts AXA Group’s Mobilizing research Collaborating with 18 other big Collective engagement with sustainability and climate strategy for women
Slide 13: Ambition 2020 | Well on track
Ambition 2020 | Well on track Underlying Free Adjusted return Solvency II earnings per share cash flows2 on equity3 ratio4 +3 % €6.6 bn 14.4% 193% 2018 vs. 2017 2018 2018 2018 3% - 7% € 28-32 bn 14% - 16% 170% - 220% UEPS CAGR1 2015-2020 Cumulative 2015-2020 ✓ ✓ ✓ ✓ Improved target range from Invest
Slide 14: Business performance
Business performance Jacques de Peretti Chairman & CEO of AXA France
Slide 15: France | Strong results, key objectives achieved
France | Strong results, key objectives achieved Underlying earnings Profitability Revenues In Euro million +10% 92.3% P&C +3 % Combined Ratio 1,573 (-2.3 pts) Health +44% 97.9% Health Combined Ratio (-0.8 pt) L&S and Protection +12% +12% +5% +3% 95.0% Protection Combined Ratio Health Protection P&C
Slide 16: France | Our strategic priorities
France | Our strategic priorities Improve Be a Offer Leverage Be an customersatisfaction partner more simplicity the integration important actor and service quality to our customers to our customers of AXA XL in society Individual Customers: 1st player Simplification Revenue Protection respond withi
Slide 17: Business performance
Business performance Gérald Harlin Deputy CEO & Group CFO
Slide 18: Europe | Growth and profitability from disciplined execution
Europe | Growth and profitability from disciplined execution Underlying earnings Profitability Revenues In Euro million +10% +3% 2,532 94.5% +3 % P&C P&C Spain Combined Ratio Commercial lines Italy (-0.1 pt) Higher technical margin +3% UK & Ireland notably in Switzerland (Life), Health UK & Ireland
Slide 19: Asia | Strong profitability in highly competitive markets
Asia | Strong profitability in highly competitive markets Underlying earnings Profitability Revenues In Euro million +5% 97.1% +4 % 1,101 P&C Combined Ratio (-0.5 pt) Higher technical margin in Japan Life Japan 78.8% +12% Higher Unit-Linked Health Protection management fees Combined Ratio APE in Hon
Slide 20: AXA XL | Two major Nat Cats in 4Q 2018, favorable business momentum
AXA XL | Two major Nat Cats in 4Q 2018, favorable business momentum Underlying earnings Strong business growth … In Euro billion 0.2 Includes Revenues +3% Specialty ▪ Hurricane Michael (Euro -0.3 billion) 2 ▪ California wildfires (Euro -0.3 billion) 2 +10% +13% P&C Insurance (includes two large tran
Slide 21: United States | Strong operating performance under IFRS
United States | Strong operating performance under IFRS Underlying earnings Life & Savings Asset Management In Euro million +4% 1,125 Higher Unit-Linked and mutual fund fees +6% APE +5% AB Revenues (Euro +0.1 billion) € 1.5 bn € 2.7 bn Higher investment margin (Euro +0.1 billion) US Life Model and a
Slide 22: International | Building for growth and managing for profits
International | Building for growth and managing for profits Underlying earnings Profitability Revenues In Euro million +28% +11% 400 100.6% P&C Combined Ratio +5 % Health (stable) from insuranceactivities +4% Mexico from higher net P&C technical margin in P&C Commercial lines and Health Turkey from
Slide 23: AXA IM | Strong earnings growth and positive third party net flows
AXA IM | Strong earnings growth and positive third party net flows Underlying earnings In Euro million +6% 270 Acquisition of one of the Lower financial charges Continued € +3 bn Quadrant Real growth in Estate Advisors’ Lower income tax expenses alternatives mainly linked to higher real estate US li
Slide 24: Summary of earnings & Financial strength
Summary of earnings & Financial strength
Slide 25: Group results and dividend
Group results and dividend Underlying earnings Adjusted earnings1 Dividend Distribution In Euro million In Euro million In Euro per share rate +6% +3% +6% 6,489 52% 6,182 1.34 Enhanced payout ratio range Underlying earnings growth per share 2018 vs. 2017 50-60% of adjusted +3% earnings FY18 FY18 FY1
Slide 26: Net income
Net income Net income In Euro million FY17 FY18 -66% Adjusted earnings 6,457 6,489 2,140 Change in fair value and Forex -134 -463 Exceptional and discontinued operations 124 -451 Integration and restructuringcosts -148 -332 Goodwill and related intangibles -90 -3,102 Net income 6,209 2,140 FY18 26 F
Slide 27: Main financial strength indicators
Main financial strength indicators Shareholders’ equity Solvency II ratio Financial strength ratings In Euro billion AA- 69.6 205% 193% stable 62.4 Aa3 negative AA- stable FY17 FY18 FY17 FY18 27 Full Year Earnings 2018 | February 21, 2019
Slide 28: General Account invested assets
General Account invested assets Allocation of invested assets New fixed income investments (General Account insurance invested assets) 2018 5% 7% 28% Cash 34% Below Investment Government bonds and related Corporate bonds 3% Grade credit * Average rating: AA Listed equities 6% 7% New Real Estate € 61
Slide 29: Concluding remarks
Concluding remarks Thomas Buberl Group CEO
Slide 30: 2018 has been a pivotal year for AXA
2018 has been a pivotal year for AXA, marked by a profound transformation of the Group and a strong operating performance Strong revenue growth, driven by our preferred segments, and underlying earnings, which are at their highest ever reported level For 2019, we are focused on our priorities: C
Slide 31: Q&A Session
Q&A Session
Slide 32: Socially Responsible Investment Ratings
Socially Responsible Investment Ratings 2016 Sector Leader, Ranked “A+” in the 2017 General score: A- ranked 1st out of 42 “Assessment Report” Score level: « Leadership » Included in Vigeo Euronext (Responsible Investment Strategy) (2017) indices 2017: 2 nd in sector Included in the Score: AAA Gener
Slide 33: Notes (1/2)
Notes (1/2) Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earn ings, unless otherwise specified. Page 5 1. Underlying earnings are APM. For further information, please refer to the reconciliation of underlying earnings to the
Slide 34: Notes (2/2)
Notes (2/2) Page 11 1. 2016 pre-tax underlying earnings excluding AXA SA. 2. New AXA based on 2016 pre-tax underlying earnings excluding AXA SA and AXA US (Life & Savings and AB), and including 100% of XL Group. For XL Group, earnings are based on 2016 operating net income before taxes converted wit