Axa Sa · EURONEXT:CS
Axa Sa — H1 2011 Earnings Presentation
38 slides from Axa Sa's earnings presentation, Aug 4, 2011
Slide 1: Half Year 2011 Earnings Press Conference
Half Year 2011 Earnings Press Conference Paris, August 4, 2011
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: Table of contents
Table of contents 1H11 key highlights Page 3 by Henri de Castries, Chairman and CEO 1H11 financial performance Page 6 by Denis Duverne, Deputy CEO Concluding remarks Page 33 by Henri de Castries, Chairman and CEO 3 – AXA HY11 Earnings – August 4, 2011
Slide 4: First half 2011 highlights
First half 2011 highlights On going commitment to Macro-economic Acceleration in high growth markets risk research and education challenges and volatility Buy out of minority AXA Research Fund: interest of Asia Life €52 million distributed AXA Group supports European assets in 22 countries sin
Slide 5: 1H11 key financial highlights
1H11 key financial highlights Underlying earnings up 10% to Euro 2.2 billion Strong earnings growth Adjusted earnings up 7% to Euro 2.4 billion Net income quadrupled to Euro 4.0 billion Changes are at constant Forex. Substantial increase L&S NBV margin up from 21% to 26% in new business P&
Slide 6: Table of contents
Table of contents 1H11 key highlights Page 3 by Henri de Castries, Chairman and CEO 1H11 financial performance Page 6 by Denis Duverne, Deputy CEO Concluding remarks Page 33 by Henri de Castries, Chairman and CEO 6 – AXA HY11 Earnings – August 4, 2011
Slide 7: 1H11 financial performance
1H11 financial performance Group Life & Savings Property & Casualty Asset Management Balance sheet 7 – AXA HY11 Earnings – August 4, 2011
Slide 8: Group Revenues
Group Revenues Insurance revenues* Revenues by segment by region In Euro billion Comparable Direct P&C In Euro million 1H10 1H11 basis(1) Asia 1.1 (incl. Japan) Life & Savings 30,812 27,841 -6.6% 4.3 France Northern, 10.1 Property & Casualty 14,691 15,350 +2.7% Central Mediterranean & Eastern & Lati
Slide 9: Focus on high-growth markets
Focus on high-growth markets L&S : New business sales (APE) P&C - High growth markets(2) in High growth markets(1) Revenues In Euro million +11% In Euro million +11% 1,564 1,417 481 298 1H10 1H11 P&C - Direct(3) In Euro million Revenues +9% 1,059 962 1H10 1H11 1H10 1H11 Changes on a comparable basis
Slide 10: Group Underlying Earnings
Group Underlying Earnings Underlying Earnings Underlying Earnings by segment In Euro million At constant In Euro million 1H10 1H11 Forex +10% Life & Savings 1,320 1,310 -1% 2,222 1,997 Property & Casualty 843 989 +15% Asset Management 150 157 +6% International Insurance 144 143 -2% Banking (22) 8 na
Slide 11: A balanced mix of business
A balanced mix of business Pre-tax underlying earnings by activity* P&C & (1) International Savings and Asset Management Insurance 28% 43% Protection & Health 29% * Excluding Banking and Holdings. All notes are on page 37 of this document. 11 – AXA HY11 Earnings – August 4, 2011
Slide 12: Group Adjusted Earnings & Net Income
Group Adjusted Earnings & Net Income Adjusted Earnings In Euro million +7% 2,393 Higher Underlying Earnings and higher 2,187 realized capital gains partly offset by higher impairments including on Greek government bonds 1H10 1H11 ROE(1) 11.8% 13.5% Change is at constant Forex. Net Income In Euro mil
Slide 13: 1H11 financial performance
1H11 financial performance Group Life & Savings Property & Casualty Asset Management Balance sheet 13 – AXA HY11 Earnings – August 4, 2011
Slide 14: L&S – Scope overview
L&S – Scope overview Global footprint Well balanced business mix 1H11 APE by business G/A Protection Operations in over 30 countries Unit-Linked & Health # 1 global insurer(1) 32% 38% Over 40 million customers Mutual Funds & others 1H11 APE by geography G/A Savings 10% 19% Asia (incl. Japan) T
Slide 15: L&S – New business sales and margins
L&S – New business sales and margins 1H11 new business trends by line of business Margin Protection & Health Margin 47% Sales growth +14% Unit-Linked Margin 24% Sales growth -1% Mutual Funds & Others Margin 7% Sales growth +15% Growth General Account Savings Margin -2% Sales growth -26% Group new bu
Slide 16: L&S – Underlying Earnings
L&S – Underlying Earnings Underlying Earnings In Euro million Negative scope effect from UK partial sale (€-139m) -1% Impact of the Japanese earthquake (€-70m) 1,320 1,310 Unit-Linked up 52%(2), driven by a strong increase in 1,207 US Variable Annuities General account savings up 11%(2), dri
Slide 17: 1H11 financial performance
1H11 financial performance Group Life & Savings Property & Casualty Asset Management Balance sheet 17 – AXA HY11 Earnings – August 4, 2011
Slide 18: P&C – Scope overview
P&C – Scope overview Global scope Unique exclusive network 1H11 Revenues by channel Operations in over 30 countries(1) Agents Over 55 million customers 42% # 3 global insurer(2) # 2 amongst non-local insurers(3) in high growth markets Direct & others 11% Brokers - IFAs 1H11 Revenues by geogr
Slide 19: P&C – Revenues
P&C – Revenues P&C Revenues Personal lines In Euro million +3.7% Average price increase of +4.4% +2.7% Increase in volumes more than offset 8,683 9,121 by a decrease in average premiums 15,350 14,691 1H10 1H11 Commercial lines +1.1% Average price increase of +2.1% 5,970 6,156 Partly offset b
Slide 20: P&C – Combined Ratio
P&C – Combined Ratio 1H10 Combined Ratio 1H11 Combined Ratio 98.6% 97.2% o/w 1.7 % o/w 0.1 % Nat Cat Nat Cat - 4.5 % - 2.0 % Loss Loss 75.6 % 72.4 % Ratio Ratio 98.6% 97.2% 98.6% 97.2% Expense Expense 27.5 % 26.8 % Ratio Ratio Current Year Prior Year Current Year Prior Year Combined Reserve Combined
Slide 21: P&C – Underlying Earnings
P&C – Underlying Earnings P&C Underlying Earnings In Euro million Combined ratio improved by 1.3 pt reflecting improved current year combined ratio and lower prior year reserve developments. +15% 989 Stable investment income at 1.0 bn. 843 Underlying earnings 1H11 Change by country/region in € m
Slide 22: 1H11 financial performance
1H11 financial performance Group Life & Savings Property & Casualty Asset Management Balance sheet 22 – AXA HY11 Earnings – August 4, 2011
Slide 23: AM – Scope overview
AM – Scope overview Complementary business models AXA insurance companies as key clients; Mostly third party: institutional, retail and Client mix successful diversification through third party private clients Ability to deliver tailor-made investment solutions Focus on US, Global and Non-US
Slide 24: AM – Assets under management roll-forward
AM – Assets under management roll-forward In Euro billion Primarily in institutional Forex impact due to clients segment (Euro - Euro’s appreciation 20bn) versus other currencies 878 1 (24) 16 (33) 837 Opening Net Net Market Scope, Closing AUM inflows outflows effect Forex AUM (FY10) & others (1H11)
Slide 25: AM – Focus on inflows
AM – Focus on inflows 1H11 Net inflows 1H11 Net outflows Euro +1 bn USD - 33.9 bn or Euro -24 bn Split by expertise Split by product strategy $ 5.5 bn € 4 bn $ 3.1 bn AXA Rosenberg Equity Other Fixed Alternative expertises Income & Others € (3) bn $ (42.5) bn 25 – AXA HY11 Earnings – August 4, 2011
Slide 26: AM – Average AUM and Revenues
AM – Average AUM and Revenues Average Assets Asset Management Under Management Revenues In Euro billion In Euro billion +0% 878 878 862 +3% 849 837 845 1.7 1.7 269 FY10 1H11 1H10 1H11 Opening AUM Average AUM Closing AUM Changes on a comparable basis. 26 – AXA HY11 Earnings – August 4, 2011
Slide 27: AM – Underlying Earnings
AM – Underlying Earnings Underlying Earnings In Euro million Higher net revenues and contained expense base at AXA IM. +6% 157 150 Higher expenses at AllianceBernstein mainly due to promotion and services on new products, partly offset by higher revenues. Underlying earnings 1H11 Change per asse
Slide 28: 1H11 financial performance
1H11 financial performance Group Life & Savings Property & Casualty Asset Management Balance sheet 28 – AXA HY11 Earnings – August 4, 2011
Slide 29: Robust Balance Sheet
Robust Balance Sheet 49.7 46.4 Reflects 2010 dividend payment, Shareholders’ negative Forex movements, lower equity unrealized capital gains and AXA APH transaction In Euro billion FY10 1H11 182% 186% Solvency I Mainly driven by underlying earnings ratio FY10 1H11 178% 184% Economic Strong economic
Slide 30: General Account invested assets
General Account invested assets Invested assets (100%) In Euro billion FY10 % 1H11 % Changes in asset allocation Fixed income 365 83% 356 82% Scope effect: Euro -3 billion related o/w Govies and related 188 42% 187 43% to the announced sale of Canadian o/w Corporate bonds 150 34% 142 33% operation
Slide 31: Exposure to European peripheral countries
Exposure to European peripheral countries As of June 30, 2011 Net unrealized gains % of AXA’s Net* In Euro billion on fixed income assets General Account exposure +3.3 Italy 3.9% 5,3bn +2.6 -0.7 Spain 2.3% 4,1bn Portugal 0.3% 0.4bn Ireland 0.2% 0.3bn Greece 0.2% 0.3bn Total excluding Italy, Italy, S
Slide 32: Objectives for the remainder of 2011
Objectives for the remainder of 2011 “Going forward, as the macro-environment remains uncertain, we should continue to benefit from our selective approach in mature markets, our acceleration in high growth markets and the ongoing efficiency programs which started to deliver" Continue to drive our
Slide 33: Table of contents
Table of contents 1H11 key highlights Page 3 by Henri de Castries, Chairman and CEO 1H11 financial performance Page 6 by Denis Duverne, Deputy CEO Concluding remarks Page 33 by Henri de Castries, Chairman and CEO 33 – AXA HY11 Earnings – August 4, 2011
Slide 34: Ambition AXA: We started to deliver on our objectives
Ambition AXA We started to deliver on our objectives Underlying earnings per share Group operating free cash flows +7% In Euro per share Ambition AXA 1H11 in line with our 2010-2015 +11% expectations to deliver on cumulative Ambition AXA Group operating free cash 0.90 Euro 24 billion 0.85 2010-201
Slide 35: Q&A session
Q&A session Q&A session 35 – AXA HY11 Earnings – August 4, 2011
Slide 36: AXA at a glance
AXA at a glance # 1 global insurer in Life # 3 global insurer in P&C # 6 global Asset Manager The AXA Group is included in the main international SRI indexes, such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD. 36 – AXA HY11 Earnings – August 4, 2011
Slide 37: Notes
Notes Page 8 (1) Change on a comparable basis corresponds to: For activity indicators, constant exchange rates, scope and methodology; For earnings and profitability indicators, constant exchange rates. Page 9 (1) Life & Savings high growth markets are: Hong Kong, Central & Eastern Europe (Poland, C
Slide 38: Definitions
Definitions AXA's 1H11 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at June 30, 2011 and are subject to completion of a limited review by AXA’s independent auditors. Adjusted earnings, underlying earnings, Life & Savings EE