Axa Sa · EURONEXT:CS
Axa Sa — H1 2013 Earnings Presentation
42 slides from Axa Sa's earnings presentation, Aug 2, 2013
Slide 1: Half Year 2013 Earnings
2013 Half Year Earnings Press conference Paris - August 2, 2013
Slide 2: Cautionary note concerning forward-looking statements
Cautionary note concerning 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 be
Slide 3: AXA at a glance - First half of 2013
AXA at a glance - First half of 2013 Regions Euro billion 50 revenues (1) Asia (excl. Japan) 8% International insurance 4% Japan 11% France Euro billion 1,121 assets under management (2) Insurance 23% Northern, Central and Underlying United States Eastern Europe Earnings (5) 11% 2.6 Euro billion und
Slide 4: Content
Content 1 Key highlights page 5 5 Global performance page 28 2 Life & Savings page 14 6 Balance sheet page 32 3 Property & Casualty page 19 7 Concluding remarks page 36 4 Asset management page 24 4 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 5: Key highlights
Half Year 2013 Earnings 1 Key highlights Henri de Castries Chairman and CEO 5 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 6: Combining growth and performance in the 1st half of 2013
1 In the 1st half of 2013, KEY combining growth and performance… HIGHLIGHTS A very strong operational Growth in all 3 business lines performance: +16% 3.3 3.1 +9% Underlying earnings Life & Savings in Euro billion New Business Sales comp. in Euro billion 2.6 1H 2012 1H 2013 2.3 16.2 16.5 +16% comp.
Slide 7: Providing daily support to our customers
1 …by providing daily support to our customers… KEY HIGHLIGHTS Doing our job Developing the strength of our brand 5.7 Euro billion in benefits paid to « Going Digital »: meeting our customers where they are, and 1.9 Protection & Health customers offering innovative and mobile services (e.g. an appli
Slide 8: Fully playing our role for the long term
1 …by fully playing our role for the long term… KEY HIGHLIGHTS Supporting long term Better understanding and economic growth preventing risks Development of a European midcap financing platform, in partnership with several AXA strengthens its support to banks international science through an France,
Slide 9: Quality of the Group's operating model
1 …thanks to the quality of the Group’s operating model KEY HIGHLIGHTS Diversified business… …and a strong balance sheet Pre-tax Underlying earnings by activity, excl. holdings Protection & Solvency I Health P&C and 218% International Ratio 25.2% Insurance 41.4% Economic Savings & Asset Solvency (2)
Slide 10: Pursuing selective growth strategy in line with Ambition AXA
1 In line with Ambition AXA, KEY we are pursuing selective growth strategy… HIGHLIGHTS Life & Savings Property & Casualty New business sales (APE) Revenues in Euro million in Euro million 3,310 16,173 16,497 15,350 2,986 3,064 12% 14,691 2,948 13% 42% 39% 34% 30% 13% 23% 25% 26% 41% 36% 35% 31% 1H 2
Slide 11: Accelerating development in high growth markets and segments
1 …accelerating our development in high growth markets KEY and segments… HIGHLIGHTS Life & Savings Property & Casualty High growth markets (1) High growth markets and Direct (2) New business sales (APE) * Revenues * in Euro million in Euro million 3,423 537 2,914 481 474 2,623 2,379 Direct 298 High
Slide 12: Improving operational efficiency of the Group
1 …and maintaining our efforts to improve the operational KEY efficiency of the Group… HIGHLIGHTS Staying competitive To better serve our customers Progress of the efficiency program 2013 Investment program savings in Euro billion Support Euro 200 million of functions potential further savings 25% O
Slide 13: External growth opportunities and agile capital allocation
1 …whilst continuing to seize external growth opportunities KEY thanks to an agile allocation of our capital HIGHLIGHTS INVESTEMENTS Life insurance joint-venture in China € 0.5 bn over 5 years 50% of the AXA Asia Life & Savings Minorities Property & Casualty insurer in China* € 3.2 bn € 0.5 bn HSBC
Slide 14: Life & Savings
Half Year 2013 Earnings 2 Life & Savings Denis Duverne Deputy CEO 14 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 15: New business by segment
2 New business by segment Significant sales progress on priority segments LIFE & SAVINGS Protection G/A Unit-Linked Mutual funds & Health Savings APE in Euro million APE in Euro million APE in Euro million APE in Euro million 1,341 1,241 1,138 956 +9% comp. 531 +21% 442 comp. 390 -17% 335 comp. +19%
Slide 16: New business by market
2 New business by market Contribution on the part of all markets to the 9% increase in sales LIFE & SAVINGS New business sales (APE) Mature markets +8% 31% Other high growth markets 2.5% France Asia (excl. Japan) 20.9% New business New business 13.7% sales growth margin 1H 13 vs. 1H 12 comp. 1H 2013
Slide 17: Pre-tax underlying earnings by segment
2 Pre-tax underlying earnings by segment Strong pre-tax earnings increase of 15% LIFE & SAVINGS Protection General Account Unit-Linked & Health Savings in Euro million in Euro million in Euro million 1,187 1,086 -9% of which United States € 310 m published i.e. + 153% vs. 1H2012 (comp.) -6% comp. 53
Slide 18: Post-tax underlying earnings
2 Post-tax underlying earnings Significant earnings increase, mainly driven by the United States LIFE & SAVINGS Underlying Earnings Underlying Earnings Life & Savings by geography in Euro million Other high growth 1,534 markets 1,396 2% France Asia (excl. Japan) 23% 12% +10% Japan published United S
Slide 19: Property & Casualty
Half Year 2013 Earnings 3 Property & Casualty Denis Duverne Deputy CEO 19 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 20: Revenues by segment
3 Revenues by segment Selective growth and good momentum in commercial lines PROPERTY & CASUALTY Personal lines in Euro million Total revenues 9,424 9,489 in Euro million 16,173 16,497 +1% published & comp. +2% 1H 2012 1H 2013 published & comp. Commercial lines in Euro million 6,691 6,944 +4% publis
Slide 21: Revenues by market
3 Revenues by market Sustained growth in high growth markets and Direct PROPERTY & CASUALTY Mature markets Revenues 0% 95.0% Growth Combined Ratio France 1H 13 vs. 1H 12 comp. all-year 19% Direct 7% Northern, Central High growth markets (1) Asia and Eastern 3% € 16,497 m Europe +15% 97.6% United Kin
Slide 22: All-year combined ratio
3 All-year combined ratio Further improvement of the technical profitability PROPERTY & CASUALTY Improved current-year Improved all-year combined ratio incl. flooding in combined ratio Germany: Euro 73 98.6% 97.5% million 0.5% 0.7% -1.1 pt 96.5% 95.7% 1H 2012* 1H 2013 Natural catastrophes Favorable
Slide 23: Underlying earnings
3 Underlying earnings Strong growth driven by mature markets and Direct PROPERTY & CASUALTY Underlying Earnings Underlying Earnings Property & Casualty by geography In Euro million Direct 4% Asia 1,128 3% Germany 13% 1,036 France 26% Switzerland 16% +9% published United Kingdom & Ireland Belgium 10%
Slide 24: Asset management
Half Year 2013 Earnings 4 Asset management Denis Duverne Deputy CEO 24 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 25: Assets under management roll-forward
4 Assets under management roll-forward 19 Euro billion increase ASSET MANAGEMENT Assets under management roll-forward AXA IM & AllianceBernstein in Euro billion Assets under FY12 1H 2013 12 Management in Euro billion in Euro billion 922 2 -5 AXA IM 10 Assets managed for AXA 365 371 Third party 188 1
Slide 26: Revenues and net flow development
4 Revenues and net flow development Confirmed recovery of net inflows ASSET MANAGEMENT Revenues in Euro million Net flow development in Euro billion 1,741 10 5 1,575 1H 2012 2H 2012 1H 2013 -2 +11% published Net flow development +12% in Euro billion comp. 2 1 1H 2012 2H 2012 1H 2013 1H 2012 1H 2013
Slide 27: Underlying earnings
4 Underlying earnings Sharp increase, notably at AXA IM ASSET MANAGEMENT Underlying Earnings Underlying Earnings Asset Management by asset manager in Euro million 194 AllianceBernstein 39% 159 +22% published +24% AXA IM comp. 61% 1H 2012* 1H 2013 * Retrospectively restated for the amendments to IAS
Slide 28: Global performance
Half Year 2013 Earnings 5 Global performance Denis Duverne Deputy CEO 28 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 29: Revenues
5 Revenues Global 4% growth driven by all segments GLOBAL PERFORMANCE Geographic split of insurance revenues Revenues 1H 2012 1H 2013 Change International in Euro in Euro Asia (excl. Japan) insurance by segment million million comparable 3% 4% Life & Savings 28,607 29,603 +5% Japan Direct 5% 2% Prop
Slide 30: Underlying earnings
Underlying earnings 5 The very solid operational performance reflects growth in both GLOBAL Life & Savings and Property & Casualty earnings PERFORMANCE Underlying Earnings in Euro million Underlying earnings 1H 2012* 1H 2013 Change in Euro in Euro by segment million million comparable 2,579 Life & S
Slide 31: Adjusted earnings and net income
Adjusted earnings and net income 5 Very significant increase of the adjusted earnings GLOBAL Net income slightly impacted by exceptional items PERFORMANCE Adjusted Earnings in Euro million Net realized capital 2,954 gains: Euro 375 million including Significant growth mainly driven by an increase of
Slide 32: Balance sheet indicators
Half Year 2013 Earnings 6 Balance sheet indicators Denis Duverne Deputy CEO 32 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 33: Main financial strength indicators
6 Main financial strength indicators Confirmation of the Group’s solidity BALANCE SHEET 53.6 51.5 Slight decrease in shareholders’ equity despite Shareholders’ stable net income level, whose positive effect is more than offset by lower net unrealized gains, the equity impact of Forex movements and t
Slide 34: General Account invested assets
6 General Account invested assets Well diversified and high quality investment portfolio BALANCE SHEET Invested assets allocation Alternative Real Estate Investments (2) 5% 3% Changes in asset allocation Listed Equity 4% Net inflows, investment income and Cash maturities: invested mainly in corpor
Slide 35: General Account invested assets: investment strategy
6 General Account invested assets Investment strategy during the 1st half of 2013 BALANCE SHEET Current Fixed income Diversification towards investment policy new asset classes ABS Investments in higher yielding less liquid fixed ~5% Short duration high income asset classes: yield Loans ~8% ~10% Cor
Slide 36: Concluding remarks
Half Year 2013 Earnings 7 Concluding remarks Henri de Castries Chairman & CEO 36 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 37: Confidence in our strategic choices for the Group
7 The 1st half of 2013 consolidates our confidence in our strategic choices for the Group CONCLUDING REMARKS Growth, performance and solidity Pursuit of the Group’s transformation Revenues +4% Selectivity: ongoing improvement of both the business mix and operational profitability Underlying ea
Slide 38: Q&A Session
Half Year 2013 Earnings ? Q&A Session 38 - AXA - Half Year 2013 Earnings - 2 August 2013
Slide 39: 1H13 Key Figures
1H13 Key Figures APPENDICES in Euro million unless otherwise noted Change Change on a reported basis on a comparable basis GROUP: KEY FIGURES 1H12* 1H13 Total revenues 48,405 50,044 +3% +4% Underlying Earnings 2,263 2,579 +14% +16% Adjusted Earnings 2,386 2,954 +24% +26% Net Income 2,544 2,467 -3% -
Slide 40: SRI ratings
SRI ratings APPENDICES Human Resources 53 % (+) 2012 1-year trend 2012 Human Rights 52 % (+) Overall score 74% (sector avg.: 48%) Stable Community involvement 44 % (+) Social 65% (sector avg.: 41%) +2 pts Environment 65 % (+) Environmental 80% (sector avg.: 46%) -5 pts Business behaviour 53 %
Slide 41: Notes
Notes Page 3 1. 1st half of 2013. 2. As of June 30, 2013. 3. As of December 31, 2012. 4. Interbrand ranking - 2009 to 2012. 5. Underlying earnings of insurance activities in the first half of 2013 (Life & Savings, Property & Casualty, International Insurance). 6. Pre-tax underlying earnings in the f
Slide 42: Definitions
Definitions AXA's 1H13 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2013 and are subject to completion of a limited review by AXA’s independent auditors. Adjusted earnings, underlying earnings and NBV are non-GA