Slide 1: Full year 2019 Appendices
Full year 2019 Appendices February 20, 2020
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.23 4. BALANCE SHEET B.30 5. CORPORATE RESPONSIBILITY B.58 B3 Full Year 2019 Earnings l Appendices l February 20, 2020
Slide 4: Group overview
B1 Group overview
Slide 5: Revenues and underlying earnings by geography
Revenues and underlying earnings by geography FY19 figures Revenues by geography Underlying earnings by geography Transversal1 3% Transversal1 5% EQH 4% EQH 6% France 25% France 24% AXA XL 7% AXA XL 18% Euro 104 billion Euro 6.5 billion2 Asia & International 23% Asia & International 16% Europe 33% E
Slide 6: AXA's rankings
AXA’s rankings FY19 figures1 P&C L&S P&C L&S France #2 #3 Indonesia #4 High potentials Thailand #28 #4 Europe Switzerland #1 #4 Philippines #4 Current engines Germany #5 #8 China #19 #16 Belgium #1 #6 Mexico #4 #10 UK #2 Brazil #9 Ireland #1 Spain #5 #11 Italy #5 #6 Asia Hong Kong #1 #7 Japan #13 1.
Slide 7: Profile of revenues and underlying earnings by line of business
Profile of revenues and underlying earnings at FY19 by line of business Revenues excl. EQH Underlying earnings excl. EQH 1 Asset Management Asset Management & Banking 2% & Banking 5% Health 14% Health 10% P&C 49% P&C 48% L&S 35% L&S 36% 1. The breakdown by line of business is based on underlying ear
Slide 8: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix FY19 revenues Revenues by channel Revenues by product Other 15%1 Personal Non-Motor 13% Commercial Motor 8% Agents & salaried 24% Direct 7% Partnerships 3% Personal Motor 21% Euro 48.8 billion Euro 48.8 billion Brokers 51% Commercial Non-Motor 58% 1
Slide 9: Life & Savings and Health | Distribution and product mix
Life & Savings and Health | Distribution and product mix FY19 figures1 APE by channel APE by product Other 9% Funds & Other 6% Unit-Linked 18% Partnerships 20% Protection 38% Euro 6.0 billion Agents & salaried 48% Euro 6.0 billion G/A Savings 23% Brokers 23% Health 16% 1. Includes Life-like Health o
Slide 10: Geographies
B2 Geographies
Slide 11: France | Topline overview
France | Topline overview P&C revenues Health revenues L&S revenues In Euro million In Euro million In Euro million stable +6% +5% 7,061 7,059 4,619 14,325 4,356 13,542 Commercial 4,278 3,059 +1% 3,087 Protection 4,080 lines Group 3,742 3,976 G/A Savings 5,986 6,494 Personal 4,003 stable 3,972 lines
Slide 12: France | Profitability analysis
France | Profitability analysis P&C combined ratio Health combined ratio Protection combined ratio -1.6 pts +0.8 pt +0.4 pt 92.3% 90.7% 97.9% 98.7% 95.0% 95.3% Loss ratio 66.1% 65.1% Loss ratio 71.0% 69.3% Loss ratio 80.9% 82.2% Expense ratio 26.3% 25.6% Expense ratio 23.9% 26.0% Expense ratio 17.0%
Slide 13: Europe | Topline overview
Europe | Topline overview P&C revenues1 Health revenues L&S revenues In Euro million In Euro million In Euro million +3% +4% +6% 16,645 5,477 15,450 15,760 5,258 1,125 1,193 Commercial 6,668 Group 12,268 6,243 +4% lines Protection 9,250 5,109 +2% Individual 4,133 4,284 Personal 9,973 9,520 4,122 4,9
Slide 14: Europe | Profitability analysis
Europe | Profitability analysis P&C combined ratio Health combined ratio Protection combined ratio -1.3 pts +0.4 pt -1.8 pts 94.5% 93.2% 94.8% 95.1% 96.7% 94.8% Loss ratio 67.3% 65.9% Loss ratio 84.1% 84.1% Loss ratio 89.6% 81.1% Expense ratio 27.2% 27.2% Expense ratio 10.7% 11.0% Expense ratio 13.7
Slide 15: Asia & International | Topline overview
Asia & International | Topline overview P&C revenues Health revenues L&S revenues In Euro million In Euro million In Euro million +5% +8% +3% 5,241 3,706 7,678 4,967 7,065 3,243 1,077 Commercial +5% 2,490 905 2,370 Group lines 5,959 Protection 5,295 +5% 2,629 Personal 2,750 Individual 2,337 2,597 li
Slide 16: Asia & International | Profitability analysis
Asia & International | Profitability analysis P&C combined ratio Health combined ratio Protection combined ratio -2.5 pts -0.7 pt +1.8 pts 99.7% 86.9% 86.1% 90.2% 97.1% 88.4% Loss ratio 71.1% 67.4% Loss ratio 62.3% 62.4% Loss ratio 70.0% 71.6% Expense ratio 28.6% 29.8% Expense ratio 24.6% 23.6% Expe
Slide 17: AXA XL | Topline overview
AXA XL | Topline overview P&C Insurance revenues P&C Reinsurance revenues In Euro million In Euro million FY19 Change Pricing 1 FY19 Change Pricing 1 2 Specialty 3,867 +6% +6% Property Cat 836 -11% +3% Property 2,898 +9% +12% Other Reinsurance 3,653 +5% +3% Casualty 4,831 +15% +6% Financial lines 2,
Slide 18: Group | Topline overview
Group | Topline overview P&C revenues1 Health revenues L&S revenues In Euro million In Euro million In Euro million +5% +6% +5% 48,817 14,000 50,059 13,056 35,320 38,318 6,432 Protection 21,523 +7% 32,032 Group 5,924 Commercial 16,217 19,116 lines G/A Savings 12,398 12,991 Individual 7,132 7,568 Per
Slide 19: Group | Profitability analysis
Group | Profitability analysis P&C combined ratio Health combined ratio1 Protection combined ratio1 -1.1pts excl. AXA XL -0.6 pt +0.1 pt -0.7 pt 97.0% 96.4% 94.4% 94.1% 95.6% 93.2% Loss ratio 69.7% 69.1% Loss ratio 77.6% 77.6% Loss ratio 81.4% 74.2% Expense ratio 27.3% 27.3% Expense ratio 16.8% 16.5
Slide 20: Group | Underlying earnings by geography and by line of business
Group | Underlying earnings by geography and by line of business Underlying earnings o/w o/w o/w o/w Asset Total 1 (In Euro million) Property & Casualty Life & Savings Health Management FY19 Change FY19 Change FY19 Change FY19 Change FY19 Change France 1,715 +9% 772 +24% 861 +1% 83 -17% - - Europe 2
Slide 21: Group | Net flows
Group | Net flows FY19 figures L&S: Euro -1.7 billion Health: Euro +2.9 billion P&C NNC: +675k contracts in Euro billion in Euro billion Personal lines net new contracts, in thousands of contracts +2.3 +2.7 +1.2 +388 +1.1 +295 +0.7 -0.6 -6.1 0.0 -8 France Europe Asia & US & other France Europe Asia
Slide 22: 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 2020 Market pricing trends France 3,972 +0.7% -0.3% 3,087 +2.1% +0.9% Price hardening expected in Commercial Lines, mainly driven by Motor and C
Slide 23: Profitability analysis
B3 Profitability analysis
Slide 24: Group underlying earnings margin analysis
Profitability analysis | Group underlying earnings margin analysis In Euro million FY19 Change FY19 Change FY19 Change Investment margin 3,865 0% Fees & revenues 6,063 +5% Net technical margin 13,298 +6% + + + - Acquisition expenses 9,843 +4% - Administrative expenses 5,592 +6% - VBI amortization 88
Slide 25: P&C underlying earnings margin analysis
Profitability analysis | P&C underlying earnings margin analysis In Euro million FY19 Change FY19 Change Investment income 1,805 -4% Technical margin 10,476 +24% Average assets1 66,838 +2% Gross earned premium 30,334 +3% Average yield1,2 2.7% -17 bps AY Loss ratio 65.5% -1.2pts CY Loss ratio 68.5% -
Slide 26: Health underlying earnings margin analysis
Profitability analysis | Health underlying earnings margin analysis In Euro million FY19 Change FY19 Change FY19 Change Investment income 148 +15% Fees & revenues 1,660 +3% Technical margin 1,473 +6% Gross earned premiums: 13,977 (+6%) AY Loss ratio: 77.6% (+0.4pt) + + + - Acquisition expenses 1,580
Slide 27: L&S underlying earnings margin analysis
Profitability analysis | L&S underlying earnings margin analysis In Euro million FY19 Change FY19 Change FY19 Change Investment margin 1,930 +2% Fees & revenues 4,402 +5% Net technical margin 1,355 -2% Average G/A reserves 285,638 -6% o/w Unit-Linked management fees 926 1% Investment margin (bps) 68
Slide 28: Details on P&C current year loss ratio
Profitability analysis | Details on P&C current year loss ratio Excluding AXA XL Personal Motor Personal Non-Motor +2.0pts 61.9% 73.9% +0.6pt 74.5% +0.2pt 60.3% -0.4pt -0.5pt -1.5pts -0.9pt -0.5pt FY18 Nat Cat Price effect Freq & Sev Other1 FY19 FY18 Nat Cat Price effect Freq & Sev Other1 FY19 Total
Slide 29: 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% 1.7% 2.2% 1.4% 1.2% 1.2% 1.3% 0.6% 0.8% 1.2% FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13
Slide 30: Balance Sheet
B4 Balance Sheet
Slide 31: Balance sheet
Balance sheet 1. Investment portfolio B.32 I. General Account invested assets B.33 II. Government and corporate bonds by rating B.34 III. Government Bonds and related B.35 IV. Corporate Bonds B.36 V. Asset Backed Securities B.37 VI. Listed Equity B.38 VII. Real Estate B.39 VIII. Hedge Funds B.40 IX.
Slide 32: Investment portfolio
Investment portfolio FY19 Total General Account invested assets Resilient reinvestment yield in Duration gap maintained at ca. 1 year the context of low rates Other 1 (4%) 43% Govies & related 4% (AA average rating) Listed Equities 4% Alternatives Euro ▶ Euro 57 billion fixed income invested at 1.7%
Slide 33: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY18 % FY19 % In Euro billion Changes in asset mix Fixed income 498 81% 456 81% o/w Govies and related 236 38% 241 43% Swiss Group Life transformation: o/w Corporate bonds 209 34% 169 30% Assets decreased by Euro 24 billon, essentially investmen
Slide 34: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds 1 Below investment Below investment 13% grade (1%) Non rated (2%) grade (7%) 15% AAA BBB 20% AAA Euro 241 Euro 169 10% AA 22% billion 37% billion BBB A 42% AA 31% A Average rating maintained in the AA range Average
Slide 35: Government bonds and related
Government bonds and related Breakdown by asset domiciliation Gross1 unrealized capital gains and losses In Euro billion 45.2 Other 9% Netherlands 2% France 21% Thailand 2% Austria 3% 32.7 US 4% Spain 5% Euro 241 billion Supranational Japan 15% Institutions 6% Switzerland 6% Belgium 8% Italy 10% FY1
Slide 36: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Basic Materials 3% Technology 2% Others 3% 9.2 Consumer, Cyclical 5% Energy 5% Banks 38% Financial 6% Euro 169 billion Communications 2.6 7% Utilities 8% FY18 FY19 Industrial Consumer, Non-cyclical 9% 13
Slide 37: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment Grade 1% Non rated/Equity 3% BBB 0% CLO 94% A 12% US Subprime, Alt-A & NC RMBS 1% Prime RMBS 1% Commercial MBS 1% Euro 15 billion Euro 15 billion CDO 1% Consumer ABS2 1% AA 25% AAA 58% Other ABS 1% As of December 3
Slide 38: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by asset domiciliation Gross1 unrealized capital gains and losses In Euro billion 15% 5.6 Rest of the World US 26% Other European Countries 11% Euro 23 billion 2.2 Belgium 4% Netherlands 4% Germany 4% France Switzerland 23% FY18 FY19 6% Japan 7% As of Decem
Slide 39: Real estate investments
Real estate investments Breakdown by asset domiciliation Breakdown by type and geography Japan 3% Other 1% United States 4% United Kingdom 6% Belgium France 33% France Switzerland Germany Belgium Other Total 8% Office 11% 7% 4% 6% 12% 41% Residential 4% 8% 1% 0% 4% 16% Retail 10% 0% 2% 2% 2% 17% Mar
Slide 40: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Portfolio diversification Alternative Credit : 12 managers Multi-strategy Relative value credit 4% Program 28% Deep value credit 10% Real asset cash flow 7% Market value Short dated carry 79% Alternative credit Euro 9 billion Program 72% Multi-Stra
Slide 41: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Venture 5% Other Mezzanine 9% Japan 9% 3% Infrastructure 25% Buy-out 61% US Market value Diversified portfolio built over the long run 28% Euro 10 billion Europe 61% Direct 38% Funds of Funds 62% As of De
Slide 42: Mortgage loans
Mortgage loans Very secured portfolio: 43% 27% FY19 market value by entity1 Switzerland Germany Belgium FY19 default rate 0.26% 6% FY19 loan to value 62% Residential Residential Other 69% 9% 86% 31% Commercial Commercial 14% Switzerland France 43% 16% 6% 16% Market value2 France Belgium Euro 25 bill
Slide 43: 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 19.3 3.1 5.6 2.7 Equities & other 1 4.9 11.3 0.3 1.1 Corporate bonds 13.4 Government bonds 10.0 and related FY18 FY19 FY18 FY19 Net unrealiz
Slide 44: Asset & Liability management (1/2)
Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 P&C yield2 -17 bps3 70 bps 65 bps 3.2% FY19 1 Yield on assets Average Spread above 2.9% guaranteed rates guarantee Inforce 2.8% 1.6% +125bps New business 1.7% 0.2% +145bps FY18 FY19 FY18 FY19 (incl. EQH) (excl. E
Slide 45: 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 280 bps 120 bps 40 bps 20bps 130 bps Inforce 3.4% 3.0% 2.6% 3.8% 1.5% 1.3% 2.6% 2.2% 0.6% 0.9% business 140 bps 120 bps New 50 bps 60 bps
Slide 46: Gross financial debt – Long-term maturities
Gross financial debt – Long-term maturities Gross financial debt Contractual maturity breakdown In Euro billion In Euro billion 0.3 0.9 Debt 32% 29% 2.9 gearing 7.2 0.5 24.2 0.1 0.1 3.8 2.4 0.4 0.5 2020 2021-2025 2026-2040 > 2040 Undated 7.9 19.1 6.7 Economic maturity breakdown In Euro billion 0.5 1
Slide 47: Adjusted ROE
Adjusted ROE In Euro million FY18 FY19 Adjusted earnings 6,489 6,844 1 Interest charges on undated debt -262 -253 Average adjusted shareholders’ equity 43,390 41,215 Adjusted ROE (%) 14.4% 16.0% 1. Includes financial charges related to undated subordinated debt (recorded through shareholders’ equity
Slide 48: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion 198% Ratio as of December 31, 2019 198% 193% 59.4 Interest rate +50bps 206% +8 pts 58.1 Interest rate -50bps 186% -12 pts 30.2 30.0 Available capital Corporate spreads +50bps 195% -3 pts Required capital 203% +5 pts Equity market
Slide 49: 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 FY19 FY19 FY19 UK Transversal & Operational Asset Management & Banking Belgium Central Holdings Counterparty Asset Management, 6% 5% 4% Holdings & Othe
Slide 50: IFRS P&C reserves in excess of Solvency II Best Estimate Liabilities
IFRS P&C reserves in excess of Solvency II Best Estimate Liabilities Excess vs undiscounted SII BEL Excess vs discounted SII BEL In Euro billion In Euro billion 6.8 9.6 5.2 7.1 FY18 FY19 FY18 FY19 (AXA excl. XL) (AXA incl. XL) (AXA excl. XL) (AXA incl. XL) B50 Full Year 2019 Earnings l Appendices l
Slide 51: Focus on AXA XL net reserves
Focus on AXA XL net reserves AXA XL premiums and net reserves AXA XL P&C reserving ratio1 In USD billion (Net technical reserve/Net earned premiums) GEP NEP Net reserves Net reserving ratio FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 Insurance 12.4 13.6 14.4 8.2 8.6 8.9 23.1 25.5 25.
Slide 52: Focus on Nat Cat exposure at AXA XL
Focus on Nat Cat exposure at AXA XL AXA XL’s change in Cat exposure In Euro billion (net of reinsurance, gross of tax) -31% -24% -23% -23% ✓ Further reduction in property Cat business in 2020 (-10%) Normalized Nat Cat charges of ca. ✓ New 15% gross Quota Share on all €0.8bn at AXA XL 1.3 1.1 1.2 pro
Slide 53: 2020 Group Nat Cat Reinsurance Program
2020 Group Nat Cat Reinsurance Program Simplified Group Cat reinsurance structure for AXA Group (In 2020, AXA XL added a 15% gross quota share cover on all its property business) All Retention In Euro and basis risk (with €50m deductible) 1.25bn Change in retention 2.9bn xs 1.40bn and capacity vs 20
Slide 54: AXA Group earnings deviation with different levels of Nat Cat cost
AXA Group earnings deviation with different levels of Nat Cat cost1 In Euro billion (net of reinsurance, post-tax) €+0.5bn €+0.5bn Median 1/20y 1/10y 1/5y (50th) (95th) (90th) (80th) 1/5y 1/10y 1/20y (20th) (10th) (5th) €-0.4bn €-0.5bn More severe years Less severe years 2019 2020 1. Natural catastr
Slide 55: Operating free cash flows by segment
Operating free cash flows by segment Operating free cash flows In Euro billion 3,046 2,796 -5% -250 6.6 6.3 FY19 Life & Savings FCF In Euro million Expected Expected change Operating Free Life & Savings 2.8 statutory earnings in required capital Cash Flow 2.8 3,850 Property & Casualty 3.1 -837 3,013
Slide 56: Strong cash flow generation and remittance
Strong cash flow generation and remittance In Euro billion Operating free cash flows Cash remitted from entities Remittance ratio 116% 89% 7.6 6.6 2.6 40% 6.3 11% linked to the pre-US IPO 5.6 linked to one-off mostly from the Swiss Group restructuring operations 0.7 Life transformation 5.0 76% 79% R
Slide 57: 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 2019 inforce1 business from 2019 new business In Euro billion In Euro billion 25 3 20 2 15 1 2019 10 0 1-5 6-10 11-15 16-20 21-25 31-35 26-30 >35 5 -1 0 -2 1-5 6-10 11-15
Slide 58: Corporate Responsibility
B5 Corporate Responsibility
Slide 59: AXA's active leadership in fighting climate change and protecting societies
AXA’s active leadership in fighting climate change and protecting societies As a global As a global As a coalition investor insurer builder Euro 24 billion Coal underwriting “Net Zero Asset Green investment target doubled policy further Owner Alliance” strengthened Sharing expertise on metrics and m
Slide 60: SRI / ESG market recognizes AXA as a sustainability leader
SRI / ESG market recognizes AXA as a sustainability leader AXA is the 1st insurer by number of SRI funds in its capital(1) 2019: Sector Leader 1st / 49 insurance companies “A+” 2019 UN PRI Scorecard Score: A- (focus on Responsible Investment) Level Score: « Leadership » Included in Euronext Vigeo in
Slide 61: AXA's CR strategy addresses societal and sustainability challenges
AXA’s CR strategy addresses societal and sustainability challenges 3 main priorities for positive impact aligned with our business activities… Climate & Health and Social inequalities & biodiversity disease prevention inclusion ▶ “Warming potential” of investments below 1.5°C by 2050 ▶ Continue to d