Slide 1: Full year 2018 Appendices
Full year 2018 Appendices 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: Table of contents
Table of contents 1. GROUP OVERVIEW B.4 2. GEOGRAPHIES B.10 3. PROFITABILITY ANALYSIS B.27 4. BALANCE SHEET B.39 5. CORPORATE RESPONSIBILITY B.65 B3 Full Year 2018 Earnings l Appendices l February 21, 2019
Slide 4: Group overview
B1 Group overview
Slide 5: Revenues and underlying earnings by geography
Revenues and underlying earnings by geography FY18 figures Revenues by geography Underlying earnings by geography Transversal1 3% Transversal1 5% International 6% International 6% US 16% France 22% France 24% US 16% Euro 103 billion Euro 6.2 billion2 AXA XL 6% Europe 36% Asia 15% Europe 36% Asia 9%
Slide 6: AXA's rankings
AXA’s rankings FY18 figures1 Current engines High potentials #3 France #11 Spain #16 China #4 Thailand #2 Switzerland #15 Japan #3 Indonesia #3 Philippines3 L&S #8 Germany #6 Hong Kong L&S #9 Mexico #5 Belgium #3 US (VA2) #7 Italy #2 France #1 Ireland #8 Brazil #28 Thailand #1 Switzerland #5 Italy #
Slide 7: Revenues and underlying earnings by line of business
Revenues and underlying earnings by line of business FY18 figures Revenues by line of business Underlying earnings by line of business Asset management 4% Banking 0% Asset management 8% Banking 1% Health 9% Health 13% Euro 103 billion L&S 49% Euro 6.2 billion1 L&S 50% P&C 32% P&C 34% B7 Full Year 20
Slide 8: Life & Savings and Health | Distribution and product mix
Life & Savings and Health | Distribution and product mix FY18 figures APE by channel APE by product Other 11% Funds & Other 8% Partnerships 18% Protection 34% Agents & salaried Unit-Linked 21% Euro 6.6 billion Euro 6.6 billion sales force 51% Brokers – IFAs & others 20% Health 18% G/A Savings 19% B8
Slide 9: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix FY18 revenues excluding Health Revenues by channel Revenues by product Other 9% Direct 9% Partnerships 4% Non-Motor 62% Agents 32% Euro 35.3 billion Euro 35.3 billion Motor 38% Brokers – IFAs & others 47% B9 Full Year 2018 Earnings l Appendices l Fe
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 +1% +12% -1% 1,331 1,343 4,356 7.3 7.1 3,877 Protection 387 420 Commercial lines 3.1 -2% 3.1 G/A Savings 558 564 Personal -1% lines 4.2 4.0 Unit-Linked 387 355 Funds & Other
Slide 12: France | Profitability analysis
France | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.6 pt -0.8 pt -2.3 pts 95.6% 95.0% 98.7% 97.9% 94.6% 92.3% Loss ratio 71.1% 71.0% Loss ratio 67.5% 66.1% Loss ratio 80.7% 80.9% Expense ratio 24.4% 23.9% Expense ratio 27.1% 26.3% Expense ratio 18.0%
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 +7% +3% +1% 1,057 5,105 5,258 15.6 15.8 926 Commercial 496 lines 6.1 6.2 +3% Protection 415 G/A Savings 268 316 Personal 0% lines 9.5 9.5 Unit-Linked Funds & Other 209 211 35
Slide 14: Europe | Profitability analysis
Europe | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.3 pt -1.3 pts -0.1 pt 97.0% 96.7% 96.1% 94.8% 94.6% 94.5% Loss ratio 67.3% 67.3% Loss ratio 90.4% 89.6% Loss ratio 85.1% 84.1% Expense ratio 27.3% 27.2% Expense ratio Expense ratio 6.5% 7.1% 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 +5% +2% -3% 1,291 1,299 1,970 1,947 1.3 1.2 Commercial 0.2 lines -7% 0.1 Protection 932 1,004 Personal lines 1.2 1.1 -2% G/A Savings 343 276 Unit-Linked 16 19 FY17 FY18 FY17 FY
Slide 16: Asia | Profitability analysis
Asia | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.1 pt +0.6 pt -0.5 pt 86.7% 86.8% 78.3% 78.8% 97.6% 97.1% Loss ratio 54.6% 54.5% Loss ratio 72.3% 71.7% Loss ratio 72.0% 70.8% Expense ratio 23.7% 24.2% Expense ratio 25.2% 25.4% Expense ratio 14.7% 16
Slide 17: AXA XL | Topline overview
AXA XL | Topline overview P&C Specialty revenues P&C Insurance revenues P&C Reinsurance revenues In Euro million In Euro million In Euro million +3% +13% +16% 1,794 3,354 1,093 884 1,629 FY17 FY18 FY17 FY18 FY18 Changes are on a comparable basis XL Group is reported as part of a new segment named AX
Slide 18: US | Life & Savings profitability analysis
US | Life & Savings profitability analysis US Variable Annuity GMxB Underlying earnings1 US L&S APE4 (+6% vs. FY17) In Euro million 1% 1% 12% 12% Net of DAC and tax2 FY16 FY17 FY18 48% 22% 22% Variable Annuity base fees & other, less expenses3 331 309 280 21% 21% GMxB hedge margin 13 69 99 Reserve s
Slide 19: 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 +4% +7% +3% 5,607 5,414 13,056 35.3 12,403 31.8 Protection 2,057 +5% 2,229 Commercial 19.1 lines 15.3 G/A Savings 1,269 1,243 1% Unit-Linked 1,631 1,383 Personal 16.3 16.1 li
Slide 20: Group | Profitability analysis
Group | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -1.3 pts -0.4 pt +0.8 pt 96.9% 95.6% 94.7% 94.4% 96.3% 97.0% Loss ratio 69.0% 69.7% Loss ratio 82.8% 81.4% Loss ratio 77.7% 77.6% Expense ratio 27.3% 27.3% Expense ratio 14.1% 14.1% Expense ratio 17.1%
Slide 21: Group | Underlying earnings by geography and 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) FY18 Change FY18 Change FY18 Change FY18 Change FY18 Change France 1,573 +10% 854 +12% 622 +2% 99 +44% - - Eu
Slide 22: Group | Net flows
Group | Net flows FY18 figures L&S: Euro -1.9 billion Health: Euro +3.2 billion P&C NNC: -64k contracts in Euro billion in Euro billion Personal lines net new contracts, in thousands of contracts o/w non-GMxB +1.8 +2.0 o/w GMxB -3.2 +1.2 +1.2 +41 +1.9 +0.9 +0.4 +4 -18 0.0 -2.6 -3.4 -0.1 -92 France E
Slide 23: L&S and Health | APE, NBV and NBV margin by geography
L&S and Health | APE, NBV and NBV margin by geography FY18 APE by product Total APE NBV NBV margin Mutual 1 G/A 1 Unit- 1 2 1 1 1 1 In Euro million Protection Change Change Change Health Change funds & Change FH17 FY18 Change FY17 FY18 Change FY17 FY18 Change 1 Savings Linked other France 420 +9% 56
Slide 24: P&C | Revenues by business line
P&C | Revenues by business line FY18 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 25: 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 2019 Market pricing trends France 4,003 +1.8% -0.7% 3,059 +2.1% -2.4% Pricing expected to remain stable Switzerland 1,614 -0.7% +0.2% 1,378 +0.3
Slide 26: Asset management | Assets under management rollforward
Asset management | Asset under management rollforward FY18 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 -7 -6 1 -7 -13 Market appreciation -25 -1
Slide 27: Profitability analysis
B3 Profitability analysis
Slide 28: Group underlying earnings margin analysis
Profitability analysis | Group underlying earnings margin analysis In Euro million FY18 Change FY18 Change FY18 Change Investment margin 4,693 +3% Fees & revenues 8,434 +7% Net technical margin 12,576 +7% + + + - Acquisition expenses 10,431 0% - Administrative expenses 6,279 +3% - VBI amortization 5
Slide 29: Group underlying earnings margin analysis by country
Profitability analysis | Group underlying earnings margin analysis by country In Euro million Total France Europe Asia AXA XL US International Transversal Central Holdings Margin on 5,093 1,563 934 1,923 - 415 258 0 - revenues Investment 4,864 1,604 1,759 40 349 641 410 62 - margin Management fees 2
Slide 30: Underlying earnings by business
Underlying earnings by business | A predominantly P&C, Protection and Health company 10% 26% Asset management in Euro million & other2 Savings3 Pre-tax underlying earnings FY17 FY18 Change Health 776 861 +13% P&C 3,228 3,263 +3% 9% Protection 1,670 1,938 +19% Health FY181 Savings 2,084 2,485 +22% 20
Slide 31: L&S underlying earnings margin analysis
Profitability analysis | L&S underlying earnings margin analysis In Euro million FY18 Change FY18 Change FY18 Change Investment margin 2,515 +3% Fees & revenues 6,854 +7% Net technical margin 993 +31% Average G/A reserves 346,859 +3% o/w Unit-Linked management fees 2,893 +6% o/w Mortality & morbidit
Slide 32: P&C underlying earnings margin analysis
Profitability analysis | P&C underlying earnings margin analysis In Euro million FY18 Change FY18 Change Investment income 2,048 +3% Technical margin 10,256 +5% Or with XL Group Average assets 1 70,263 -1% Gross earned premium 31,764 +1% Average yield 1,2 2.9% +3 bp AY Loss ratio 67.7% -1.1pt 69.7%
Slide 33: Details on P&C current year loss ratio
Profitability analysis | Details on P&C current year loss ratio Personal Motor Personal Non-Motor 74.0% +0.7pt 73.9% +1.8pts +0.5pt +0.2pt 61.3% 60.5% -0.2pt -0.8pt -0.8pt -0.8pt FY17 Nat Cat Price effect Freq & Sev Other FY18 FY17 Nat Cat Price effect Freq & Sev Other FY18 Total Commercial lines To
Slide 34: 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% 1.4% 1.9% 1.3% 2.1% 2.1% 0.9% 1.4% 1.2% 1.2% 1.3% 0.6% 0.8% 1.2% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13
Slide 35: Health underlying earnings margin analysis
Profitability analysis | Health underlying earnings margin analysis In Euro million FY18 Change FY18 Change FY18 Change Investment income 133 +12% Fees & revenues 1,579 +6% Technical margin 1,331 +8% Gross earned premiums: 13,019 (+6%) AY Loss ratio: 77.6% (-0.2pt) + + + - Acquisition expenses 1,502
Slide 36: Asset management underlying earnings margin analysis
Profitability analysis | Asset management underlying earnings margin analysis Expenses In Euro million FY18 Change2 FY18 Change2 Net revenues3 3,716 +3% Asset Management expenses 2,647 +3% o/w performance fees Euro 126 million (-2%) o/w research fees Euro 372 million (-2%) Margin1 Expenses1 Distribu
Slide 37: FY18 Key sensitivities
FY18 Key sensitivities P&L Balance sheet Impairements Change1 in fair value Total impact net Net unrealized capital net of hedges through and Forex through income gains through (incl. impact through Adjusted earnings Net income Shareholders' equity In Euro billion adjusted earnings) -25% -0.3 0.0 -0
Slide 38: Cost savings | On track with our cost savings target
Cost savings | On track with our cost savings target 2017 2018 Ambition 2020 +3% 2016 2019 60% contribution to 2015 completion rate 2020 2015 – 2020E UEPS CAGR from cost savings Euro 1.3 billion FY16-FY18 Cost savings B38 Full Year 2018 Earnings l Appendices l February 21, 2019
Slide 39: Balance Sheet
B4 Balance Sheet
Slide 40: Balance sheet
Balance sheet 1. General Account invested assets B.41 I. Government and corporate bonds by rating B.42 II. Government Bonds and related B.43 III. Corporate Bonds B.44 IV. Asset Backed Securities B.45 V. Listed Equity B.46 VI. Real Estate B.47 VII. Hedge Funds B.48 VIII. Private Equity B.49 IX. Mortg
Slide 41: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY17 % FY18 % Changes in asset mix In Euro billion Fixed income 474 82% 498 81% o/w Govies and related 232 40% 236 38% Consolidation of XL Group: Euro 33 billion assets, mainly o/w Corporate bonds 196 34% 209 34% government bonds and o/w Asset b
Slide 42: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds1 Below investment 12% AAA Below investment grade (1%) Non rated (2%) grade (6%) 16% 26% AAA BBB Euro 236 Euro 209 11% AA billion 39% billion 16% BBB A 39% AA 32% A Average rating maintained in the AA range Average
Slide 43: Government bonds and related
Government bonds and related Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Ireland 1% Other 9% 36.9 Netherlands 2% 32.7 Austria 3% France 21% Supranational Institutions 5% Spain 5% Euro 236 billion Japan 14% Switzerland 6% Belgium 7% Germany 10% FY17 FY18 Italy 9%
Slide 44: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Technology 3% Other 2% Basic materials 3% Energy 6% 7.3 Financials 6% Banks 35% Consumer Cyclical 6% Euro 209 billion 2.6 Communications 7% Utilities 8% FY17 FY18 Consumer Industrials 9% non-cyclical 16%
Slide 45: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment grade 2% Non rated/Equity 4% BBB 1% CLO 84% US Subprime, A 16% Alt-A & NC RMBS 2% Prime RMBS 2% Commercial MBS 8% Euro 13 billion Euro 13 billion CDO 0.3% Consumer ABS2 4% AA 22% Other ABS 1% AAA 55% 1. Including d
Slide 46: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Rest of the World 17% 4.7 US 25% Other European 2.2 countries 13% Euro 18 billion UK 3% France 20% Belgium 5% Switzerland 5% FY17 FY18 Germany 6% Japan 7% As of December 31, 2018 1. Gro
Slide 47: 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 1% US 3% UK 4% Switzerland 33% Belgium 9% Switzerland France Belgium Germany Other Total Office 10% 10% 6% 4% 10% 40% Residential 18% 2% 0% 0% 3%
Slide 48: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 12 managers Multi-Strategy Relative value credit 9% program Deep value credit 12% 28% Market value Alternative Credit Real asset cash flow 13% program Short dated carry 66% Euro 7 billion 72% Multi-St
Slide 49: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Other 9% Venture 5% Japan 2% Mezzanine 12% Infrastructure 14% Buy-out 69% US 32% Market value Euro 11 billion Diversified portfolio Europe 56% Direct 49% Funds of funds 51% As of December 31, 2018 B49 Ful
Slide 50: Mortgage loans
Mortgage loans Low risk mortgage loan portfolio FY18 market value by entity1 30% 19% Switzerland Germany Other 12% 45% Residential Switzerland 30% 85% Residential France 10% 55% Commercial 15% Commercial Market value2 29% 10% Euro 36 billion United States France 22% Agricultural 25% Residential Germ
Slide 51: 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 4.8 4.9 2.0 11.3 Equities & other1 0.3 1.1 Corporate bonds 11.5 Government bonds 10.0 and related FY17 FY18 FY17 FY18 2.9 2.5 2.5 N
Slide 52: Asset & Liability management (1/2)
Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 P&C yield2 -8 bps Average 69 bps 70 bps Yield on Spread above 3.3% 3.2% FY18 guaranteed assets guarantee rates Inforce 3.1% 1.8% +135 bps New business 2.5% 0.3% +220 bps FY17 FY18 FY17 FY18 • Significant buffer t
Slide 53: 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 290 bps 60 bps 140 bps 20 bps 140 bps Inforce 3.5% 3.5% 2.9% 3.9% 1.6% 1.4% 2.5% 2.4% 0.6% 1.0% business 180 bps 130 bps 120 bps 110 bps
Slide 54: Gross financial debt – Long-term maturities
Gross financial debt – Long-term maturities Gross financial debt Contractual maturity breakdown In Euro billion In Euro billion 1.6 0.8 Debt 3.9 25% 32% gearing 2.4 7.1 1.1 24.2 0.4 2.4 4.0 0.4 7.9 2019 2020 2021-2025 2026-2040 > 2040 Undated 16.2 Economic maturity breakdown3 7.4 In Euro billion 11.
Slide 55: Adjusted ROE
Adjusted ROE In Euro million (unless otherwise noted) FY17 FY18 Adjusted earnings 6,457 6,489 Interest charges on undated debt1 -229 -262 Average adjusted shareholders’ equity 43,067 43,390 Adjusted ROE (%) 14.5% 14.4% 1. Includes financial charges related to undated subordinated debt (recorded thro
Slide 56: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion 193% 205% 193% Ratio as of December 31, 2018 200% +7 pts 57.8 58.1 Interest rate +50bps 182% -11 pts Interest rate -50bps 28.2 30.2 190% -3 pts Available capital Corporate spreads +50bps Required capital 195% +2 pts Equity market
Slide 57: 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 FY18 FY18 FY18 UK Transversal & Operational Asset Management & Banking Belgium Central Holdings Counterparty US 6% Holdings & Other 4% 4% 3% 7% Asset M
Slide 58: Shareholders' equity to Solvency II EOF
Shareholders’ equity to Solvency II EOF In Euro billion IFRS 62 Move to full market value of assets Shareholders’ Equity1 • Real estate (Euro +4.7 billion) Full market value • Loans and Other (Euro +0.4 billion) +5 of assets Remove intangible assets Intangible assets -35 • Goodwill (Euro -17 billion
Slide 59: L&S EOF and NBV | Key sensitivities
L&S EOF and NBV | Key sensitivities L&S EOF sensitivities New Business Value (NBV) sensitivities In Euro billion In Euro million L&S EOF 43.0 NBV as at December 31, 2018 2,607 as at December 31, 2018 Interest rate +50 bps 44.4 +1.3 | +3% Interest rate +50 bps 2,663 +56 | +2% Interest rate -50 bps 40
Slide 60: L&S Internal Rate of Return (IRR) by country
L&S Internal Rate of Return (IRR) by country FY17 FY18 In Euro million APE NB IRR APE NB IRR France 1,849 22.0% 2,232 24.8% Europe 1,034 20.0% 1,146 21.4% Asia 1,510 15.1% 1,520 16.9% United States 1,799 15.2% 1,471 15.0% International 278 6.2% 262 19.6% Total 6,470 16.3% 6,631 18.7% B60 Full Year 2
Slide 61: Operating free cash flows by segment
Operating free cash flows by segment Operating free cash flows In Euro billion 2,832 +4% 2,691 141 6.3 6.6 FY18 Life & Savings FCF In Euro million 2.8 Expected Expected Operating Life & Savings 3.0 statutory change in Free Cash Flow earnings required capital 3,111 2,839 3.1 Property & Casualty 2.7 F
Slide 62: Group operating free cash flows by geography
Group operating free cash flows by geography In Euro million FY171 FY18 France 1,404 1,397 Europe 2,744 3,362 Asia 379 453 United States 975 809 International 317 399 AXA XL 136 (201) Other 337 352 Total 6,292 6,571 1. FY17 Free Cash Flows contribution from AXA Corporate Solutions and AXA Art have b
Slide 63: Strong cash flow generation and remittance
Strong cash flow generation and remittance In Euro billion Operating free cash flows Cash remitted from entities 88% 116% 7.6 6.3 6.6 2.6 or 76% Remittance ratio 4.9 in line with our guidance of 75% - 85% (excluding Euro 2.6 billion cash linked to the pre-US IPO restructuring operations) 5.0 FY17 FY
Slide 64: L&S free cash flow emergence from inforce and new business
L&S free cash flow emergence from inforce and new business Expected undiscounted cash flows Expected undiscounted cash flows from 2018 inforce1 business from 2018 new business In Euro billion In Euro billion 20 3.0 2.0 15 1.0 10 2018 0.0 1-5 6-10 11-15 16-20 21-25 31-35 26-30 >35 5 -1.0 0 -2.0 1-5 6
Slide 65: Corporate Responsibility
B5 Corporate Responsibility
Slide 66: SRI analysts recognize AXA as a leader
Corporate Responsibility – SRI analysts recognize AXA as a leader AXA is the 1st insurer by number of SRI funds in its capital(1) 2018: Sector Leader “A+” 2018 UN PRI Scorecard (focus Score: A- 1st / 49 insurance companies on Responsible Investment) Level Score: « Leadership » Included in Euronext V
Slide 67: Top5% for the third year in a row in 2018
Responsible insurer striving for a stronger and safer society Climate change and Health and Social inequality & Responsible Data and the environment disease prevention economic inclusion Artificial Intelligence ▶ Investing in Impact funds ▶ First to apply both investment ▶ Trusted data steward ▶ Div