Axa Sa · EURONEXT:CS
Axa Sa — H1 2014 Earnings Presentation
37 slides from Axa Sa's earnings presentation, Aug 1, 2014
Slide 1: Half Year Earnings 2014
2014 Half Year Earnings Press conference Paris - August 1st, 2014
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 2014
AXA at a glance - First half of 2014 Regions Euro billion 50 revenues (1) Asia (excl. Japan) 8% International insurance 4% Japan 7% France Euro billion 1,182 assets under management (2) Insurance 22% Northern, Central and Underlying United States Eastern Europe Earnings (5) 14% 2.8 Euro billion unde
Slide 4: Content
Content 1 Key highlights page 5 5 Global performance page 24 2 Life & Savings page 12 6 Financial strength page 27 3 Property & Casualty page 16 7 Concluding remarks page 31 4 Asset management page 20 4 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 5: Key highlights
Half Year 2014 Earnings 1 Key highlights Henri de Castries Chairman & Chief Executive Officer 5 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 6: In the 1st half of 2014, the Group combined profitability and growth
1 In the 1st half of 2014, the Group combined profitability and growth… Key highlights A dynamic 2nd quarter in Life & …and the highest first half underlying Savings and Asset management… earnings in the company’s history o/w +8% in Q2 2014 3.3 3.2 Life & Savings 2.8 New Business Sales (APE) +0% Und
Slide 7: ...to support 102 million customers
1 …to support 102 million customers Key highlights 9 Euro billion in compensations paid to our customers after a Property & Casualty claim Euro billion increase in the value of our 8 customers’ Life Insurance invested assets Euro billion benefits paid to Protection & Health 6 customers million custo
Slide 8: In the 1st half of 2014, combining selectivity...
1 In the 1st half of 2014, combining selectivity… Key highlights Life & Savings Property & Casualty 34% 95.8% New Business Margin Combined ratio and improved +2 pts vs. 1H 2013 current combined ratio Underlying Earnings +13% Underlying Earnings +9% vs. 1H 2013 vs. 1H 2013 8 - AXA - Half Year 2014 Ea
Slide 9: ...and acceleration in high growth markets
1 …and acceleration in high growth markets Key highlights Life & Savings Property & Casualty High growth markets (1) High growth markets (2) Underlying earnings Underlying earnings in Euro million In Euro million 232 209 118 124 +19% comp. +15% comp. 1H 2013 1H 2014 1H 2013 1H 2014 Contribution to L
Slide 10: Intensifying our efforts to improve the operational efficiency of the Group
1 Intensifying our efforts to improve the operational efficiency of the Group… Key highlights Staying competitive… … to better serve our customers Strong efficiency programme 2014 Investment programme In Euro billion Euro 200 million Support potential savings identified functions in addition to our
Slide 11: ...whilst preparing for the future
1 …whilst preparing for the future Key highlights Acceleration of our digital initiatives Collaboration with Facebook Launch of the 1st .axa website and of & LinkedIn the application MonAXA in France Leadership in Corporate Responsibility #1 insurance green brand worldwide in #1 insurer in terms of
Slide 12: Life & Savings
Half Year 2014 Earnings 2 Life & Savings Denis Duverne Deputy Chief Executive Officer 12 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 13: New business sales by segment
2 New business sales by segment Protection & Health new business sales are back on track in Q2 2014 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 o/w +13% 1,341 in Q2 2014 1,207 1,138 1,114 -4%
Slide 14: Underlying earnings by segment (pre-tax)
2 Underlying earnings by segment (pre-tax) Underlying earnings progress well, supported by all segments Life & Savings Underlying Earnings Life & Underlying earnings Savings (pre-tax) by segment (pre-tax) in Euro million 2,129 Unit-Linked 23% 2,067 +11% Protection & comp. Health G/A 53% Savings 22%
Slide 15: Underlying earnings (post-tax)
2 Underlying earnings (post-tax) Strong increase, notably driven by the United States and France Life & Savings Underlying Earnings Underlying Earnings Life & Savings by geography in Euro million Asia (excl. Japan) France 12% 24% 1,651 1,534 Japan 12% United Kingdom 1% United States 26% +13% Norther
Slide 16: Property & Casualty
Half Year 2014 Earnings 3 Property & Casualty Denis Duverne Deputy Chief Executive Officer 16 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 17: Revenues by market segment
3 Revenues by market segment Good momentum of high growth markets, Direct and commercial lines Property & Casualty Mature High growth Direct Total markets markets (2) in Euro million in Euro million in Euro million in Euro million 16,483 16,820 13,073 13,349 +2% + o/w +8% in + = comp. Asia +1% 2,272
Slide 18: Combined Ratio
3 Combined Ratio Improvement of the current-year ratio despite weather-related events Property & Casualty Improved current-year Combined ratio combined ratio o/w Euro 241 million from the ELA hailstorm 97.5% 97.1% in Europe 0.7% 1.7% -0.4 pt 95.8% 95.8% 1H 2013 1H 2014 Natural catastrophes Prior Yea
Slide 19: Underlying Earnings
3 Underlying Earnings Earnings are up with good performance notably in Switzerland and Germany Property & Casualty Underlying Earnings Underlying Earnings by Property & Casualty geography In Euro million Asia 3% 1,226 Direct France 4% 23% 1,128 Belgium 11% Mediterranean Switzerland +9% & Lat. Americ
Slide 20: Asset management
Half Year 2014 Earnings 4 Asset management Denis Duverne Deputy Chief Executive Officer 20 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 21: Assets under Management roll-forward
4 Assets under Management roll-forward A Euro 60 billion increase Asset management Assets under management roll-forward at AXA IM & AllianceBernstein in Euro billion Assets under FY13 1H 2014 7 953 Management in Euro billion in Euro billion 39 AXA IM Assets managed for AXA 359 377 Third party 188 20
Slide 22: Revenues and net flows
4 Revenues and net flows Strongest net inflows in 1H 2014 since the launch of Ambition AXA Asset management Revenues in Euro billion Net flows in Euro million +10 +11 Average Assets under Management +3% 1H 2013 1H 2014 1,741 1,593 +4% comp. in Euro billion Net flows Average Assets 1H 2013 1H 2014 un
Slide 23: Underlying Earnings
Underlying Earnings 4 Increase of 11% on a comparable basis excluding the impact of the sale of Asset AXA Private Equity management Underlying Earnings Underlying Earnings Asset Management by asset manager in Euro million +11% in comp. excl. AXA Private Equity (1) 194 AllianceBernstein 184 45% -4% c
Slide 24: Global performance
Half Year 2014 Earnings 5 Global performance Denis Duverne Deputy Chief Executive Officer 24 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 25: Underlying Earnings
5 Underlying Earnings Strong growth driven by all three business lines Global performance Underlying Earnings by segment Group Underlying Earnings (pre-tax) (post-tax) in Euro million o/w Euro - 85 million due Property & Casualty and to an adverse forex International Insurance impact, mainly in Japa
Slide 26: Adjusted Earnings and Net Income
5 Adjusted Earnings and Net Income Growth is driven by Underlying Earnings Global performance Résultat courant Adjusted Earnings Net Income in Euro million in Euro million 3,112 2,954 3,008 335 375 2,467 +8% +25% comp. comp. 1H 2013 1H 2014 1H 2013 1H 2014 Net realized capital gains 26 - AXA - Half
Slide 27: Financial strength
Half Year 2014 Earnings 6 Financial strength Denis Duverne Deputy Chief Executive Officer 27 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 28: Main financial strength indicators
6 Main financial strength indicators A very solid balance sheet, higher solvency ratios Financial strength 52.9 58.9 Shareholders’ Mainly driven by higher unrealized capital gains and net income contribution, partly offset by dividend equity payment. in Euro billion 2013 1H 2014 221% 254% Solvency I
Slide 29: General Account Invested Assets
6 General Account Invested Assets Diversification and quality of the investment portfolio Financial strength Invested assets allocation Alternative Real Estate Investments (2) 6% 3% Listed Equity 3% Changes in asset allocation Cash 4% Government Net inflows, investment income and maturities: Bonds
Slide 30: A performance that reflects less sensitivity to a low interest rate environment
6 A performance that reflects less sensitivity to a low interest rate environment Financial strength of Group pre-tax Underlying Earnings(1) A well-diversified ca. stemming from businesses less business mix 70% sensitive to financial markets A strong Duration gap maintained at around one asset & lia
Slide 31: Concluding remarks
Half Year 2014 Earnings 7 Concluding remarks Henri de Castries Chairman & Chief Executive Officer 31 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 32: 1H14 key takeaways and our priorities going forward
7 Conclusion Concluding remarks 1H14 key takeaways Our priorities going forward Strong increase in earnings: Continue to deliver profitable Underlying earnings: + 11% growth Net income: + 25% Accelerate growth through investments in brand and Delivering on Ambition AXA’s digital to better serve
Slide 33: Q&A Session
Half Year 2014 Earnings ? Q&A Session 33 - AXA - Half Year 2014 Earnings - August 1st, 2014
Slide 34: 1H14 Key Figures
1H14 Key Figures Appendices in Euro million unless otherwise noted Change Change on a reported basis on a comparable basis GROUP: KEY FIGURES 1H13 1H14 Total revenues 50,030 49,705 -1% +2% Underlying Earnings 2,579 2,777 +8% +11% Adjusted Earnings 2,954 3,112 +5% +8% Net Income 2,467 3,008 +22% +25%
Slide 35: SRI ratings
SRI ratings Appendices Human Resources 58% (+) 2013 1-year trend 2014 Human Rights 57% (+) Overall score 78% (sector avg.: 48%) +4 pts Community involvement 71% (+) Social 69% (sector avg.: 40%) +4 pts Environment 74% (+) Environmental 88% (sector avg.: 45%) +8 pts Business behaviour 57% (+) E
Slide 36: Notes
Notes Page 3 1. 1st half of 2014. 2. As of June 30, 2014. 3. As of December 31, 2013. 4. Interbrand ranking - 2013. 5. Underlying earnings of insurance activities in the first half of 2014 (Life & Savings, Property & Casualty, International Insurance). 6. Pre-tax underlying earnings in the first hal
Slide 37: Definitions
Definitions 1H14 financial statements are subject to completion of audit procedures by AXA’s independent auditors. AXA's 1H14 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2014. Adjusted earnings, underlying earn