Axa Sa · EURONEXT:CS
Axa Sa — Axa Sa Ord — H1 2024 Earnings Presentation
43 slides from Axa Sa's earnings presentation, Aug 2, 2024
Slide 1: Half Year 2024 Earnings Presentation
Half Year 2024 Earnings Presentation August 1, 2024
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. 1H24 Highlights p.4 Thomas Buberl, Group CEO 2. 1H24 Business Performance p.8 Frédéric de Courtois, Group Deputy CEO 3. 1H24 Financial Performance p.12 Alban de Mailly Nesle, Group CFO 3 GIE_AXA_Confidential
Slide 4: 1H24 Highlights
1 1H24 Highlights Thomas Buberl, Group CEO
Slide 5: Solid start to the Unlock the Future strategic plan, confident on execution
Half Year 2024 | Solid start to the Unlock the Future strategic plan, confident on execution +7% +4% ▶ Strategic decision to sell2 Revenue Group UEPS AXA Investment Managers, vs. 1H23 vs. 1H23 entering into a long-term partnership with BNP Paribas 16.6% 227% ▶ Share buyback to offset ROE Solvency II
Slide 6: Predictable business model delivering consistent earnings growth
Predictable business model delivering consistent earnings growth, even in an uncertain environment In Euro billion Underlying earnings +4% 4.2 Consistent performance +7% earnings growth1 4.1 in operating businesses across P&C, Life & Health and Asset Management Investments in technology In line with
Slide 7: Strategic decision to sell AXA IM and long-term partnership with BNP Paribas
Strategic decision to sell AXA IM and entering into a long-term investment management partnership with BNP Paribas Attractive €5.4 billion Continued access to high Strategic decision valuation Total cash consideration1 performing strategies to exit Asset Management (15x FY23 earnings multiple) ✓ Gro
Slide 8: 1H24 Business Performance
2 1H24 Business Performance Frédéric de Courtois Group Deputy CEO
Slide 9: Delivering organic growth, across a well diversified Group
Delivering organic growth, across a well diversified Group 1H24 revenues vs. 1H23 By line of business By geography +7% Asia, Africa & EME-LATAM, Other1 +13% France +5% Group revenues Euro +7% +7% +7% AXA XL 60 billion P&C Life Health +7% Europe +5% o/w +9% Employee Benefits 9 Change on a comparable
Slide 10: Good progress on technical margins since launch of the plan
Good progress on technical margins since launch of the plan Plan assumptions 1H24 vs. FY23 by 20261 Sustaining margins in -0.6 pt Small ▶ Continued supportive backdrop for SME & mid-market P&C Commercial lines P&C CL Undiscounted improvement ▶ AXA XL pricing in line with loss trends, including CY LR
Slide 11: Disciplined capital management
Disciplined capital management Acquisition of ▶ Completion of €1.8bn Share buy-back program Nobis Group €1.1bn annual share buy-back1, €0.7bn share buy-back to neutralize earnings dilution ▶ Predominantly P&C insurance company, ▶ Disciplined use of proceeds from the expected sale of improving AXA It
Slide 12: 1H24 Financial Performance
3 1H24 Financial Performance Alban de Mailly Nesle Group CFO
Slide 13: P&C: Delivering organic growth in Commercial lines
P&C | Delivering organic growth in Commercial lines, maintaining pricing discipline in Personal lines In Euro billion GWP & Other Revenues +7% o/w o/w 32.5 Change pricing1 volume2 30.4 ▶ AXA XL Insurance benefitting from continued favorable pricing and strong new business, and retention in Commercia
Slide 14: P&C: Attractive combined ratio at 90.2%
P&C | Attractive combined ratio at 90.2% Combined ratio 90.9% 90.2% Nat cat 3.0% ▶ Favorable evolution of undiscounted current year loss ratio 3.6% excluding Nat Cat, with large losses in line with expectations o Commercial lines: margins improved by -0.9pt vs. 1H23 Undiscounted CY 68.2% 67.4% loss
Slide 15: P&C: Earnings growth from higher underwriting result and investment income
P&C | Earnings growth from higher underwriting result and investment income In Euro million Underlying Earnings +7% 449 -307 -330 2,908 ▶ Better underwriting result from strong revenue 2,717 379 growth and improved all-year combined ratio Financial result ▶ Increase in investment income reflecting h
Slide 16: Life & Health: Growth across all segments
Life & Health | Growth across all segments, positive net flows in Protection&Health In Euro billion Life GWP Health GWP & Other Revenues & Other Revenues Net flows +7% +7% 17.4 16.3 9.1 8.2 Protection +1.9 Protection +3% 8.1 4.8 Individual +5% Health +1.3 Unit-Linked -0.6 Unit-linked +11% 4.0 Capita
Slide 17: Life & Health: Higher new business volumes, NBV margin impacted
Life & Health | Higher new business volumes, NBV margin impacted by change in business mix In Euro billion PVEP +12% +6% 25.6 1.2 1.2 23.3 NBV ▶ Higher PVEP from higher volumes in Life, particularly in France and Japan, and in Health in France, as well (post-tax) as favorable changes in actuarial as
Slide 18: Life & Health: New business driving normalized CSM growth
Life & Health | New business driving sustainable normalized CSM growth In Euro billion Contractual Service Margin rollforward +0.8 -1.4 ▶ Unfavorable scope impact from in-force transactions 33.8 +1.1 +0.8 -0.7 33.3 in France and AXA Life Europe (€-0.6bn), partly offset -0.4 -0.6 by termination of AX
Slide 19: Life & Health: Recovery in UK Health on track
Life & Health | Recovery in UK Health on track, resilient Life earnings despite negative impact from in-force transactions In Euro million Underlying Earnings +7% 99 1,725 ▶ Negative scope impact related to Life in-force 1,643 85 1 transactions, partly offset by inclusion of Laya -73 -31 Technical &
Slide 20: Asset Management: Higher earnings from increase in management fees
Asset Management | Higher earnings from increase in management fees Assets under management and Gross revenues in Euro billion Underlying earnings in Euro million Assets under management Underlying earnings +2% +8% 843 +7 +12 859 -3 101 204 JVs 188 Third-party -1 227 AXA IM Alts Main fund +5 JVs +4
Slide 21: Growth in net income, UEPS growth at 4%
Growth in net income reflecting higher earnings and realized capital gains, UEPS growth at 4% In Euro billion 1H23 1H24 Change Underlying earnings per share In Euro Property & Casualty 2.7 2.9 +7% +4% Life & Health 1.6 1.7 +7% 1.87 Asset Management 0.2 0.2 +8% 1.79 Holdings & other -0.4 -0.6 - Under
Slide 22: Shareholders' Equity reflecting dividends and share buy backs
Shareholders’ Equity reflecting payment of dividends and execution of share buy backs in 1H24 In Euro billion Shareholders’ equity1 49.6 47.3 FY23 Shareholders' equity 49.6 Change in Net OCI -1.1 Net income for the period 4.0 SHE (excl. OCI) 55.9 54.8 Dividend (paid in 1H24) -4.4 Share buy-back -1.8
Slide 23: Solvency II at 227%, supported by strong capital generation
Solvency II at 227%, supported by strong capital generation In Euro billion Key sensitivities +4.6 +0.5 -1.7 Ratio as of June 30, 2024 227% 57.4 57.7 P&C +3.0 Eligible Own -2.7 -0.3 -0.2 L&S +2.1 Interest rate +50bps +2 pts Funds (EOF) Holdings and other -0.5 Interest rate -50bps -5 pts FY23 Regulat
Slide 24: Conclusion
Conclusion Thomas Buberl Group CEO
Slide 25: Confident outlook for 2024, focus on execution
Confident outlook for 2024, focus on execution Simple and diversified business delivering predictable results Strong organic growth across all lines of business Progress on margin improvement, sustained investment for long-term growth Quality balance sheet and rigorous capital management 25 Half Yea
Slide 26: Q&A Session
Q&A Session
Slide 27: Appendices
Appendices
Slide 28: Table of contents
Table of contents 1. Debt and Invested Assets p.29 2. Additional IFRS17 disclosures p.33 3. Sustainability p.37 GIE_AXA_Confidential
Slide 29: Gross financial debt and maturity breakdown as at June 30, 2024
Gross financial debt and maturity breakdown as at June 30th, 2024 In Euro billion Gross financial debt1 Contractual maturity breakdown 0.5 Debt 20.3% 22.1% 0.8 gearing 9.1 20.0 18.8 0.9 5.8 0.8 1.5 0.5 5.8 5.4 2H 2024 2025 2026 2027 2028 2029 2030 2031- ≥2040 Undated 2039 10.7 10.6 Economic maturity
Slide 30: General Account Invested Assets
General Account Invested Assets Invested assets (100%) 1H24 % 1H24 Total General Account In Euro billion invested assets Fixed income 336 75% Duration gap at 0 year o/w Government bonds and related 167 38% o/w Corporate bonds 120 27% 1 o/w Other fixed income 49 11% 2 Real estate 50 11% Euro 445 List
Slide 31: Investment portfolio: Fixed Income reinvestment
Investment portfolio | Fixed Income reinvestment 1H24 Fixed Income reinvestment 1H24 Fixed Income reinvestment yield 5.2% 3.3% 3.7% Euro 25 billion Core Alternative Total fixed income fixed income fixed income ▶ Euro 25 billion fixed income invested at 3.7% ▪ Maintaining quality: A+ average rating G
Slide 32: Table of contents
Table of contents 1. Debt and Invested Assets p.29 2. Additional IFRS17 disclosures p.33 3. Sustainability p.37 GIE_AXA_Confidential
Slide 33: P&C: Focus on Reserves
P&C | Focus on Reserves Claims reserves ratio (Net undiscounted claims reserves/Net earned premiums) 179% 185% 193% 188% 189% 198% 195% 185% FY18 FY19 FY20 FY21 FY22 FY22 FY23 1H24 IFRS4 IFRS17 Technical reserves ratio (Net undiscounted technical reserves1/Net earned premiums) 213% 227% 233% 226% 22
Slide 34: P&C: Margin Analysis
P&C | Margin Analysis Technical Result Financial Result In Euro million (pre-tax) In Euro million (pre-tax) 1H24 Change 1H24 Change CY Undiscounted Technical Margin 1 184 +115 Investment Income 1 967 +449 Gross Earned Premiums 27 294 8.1% 1H24 Average Assets €108bn Current Year Undiscounted Combined
Slide 35: L&H: Margin Analysis
L&H | Margin Analysis Technical Result Financial Result In Euro million, pre-tax In Euro million, pre-tax 1H24 Change Short-term Technical Margin 195 +117 1H24 Change Gross Earned Premiums 7 979 +11% + Investment Income (non-VFA only) 1 319 +122 All Year Combined Ratio 97.6% -1.4pt 1H24 Average Asse
Slide 36: Table of contents
Table of contents 1. Debt and Invested Assets p.29 2. Additional IFRS17 disclosures p.33 3. Sustainability p.37 GIE_AXA_Confidential
Slide 37: AXA for Progress Index: key indicators to measure our impact
AXA for Progress Index1: key indicators to measure our impact €6bn3 Upskill AXA Group’s in P&C GWP cumulative 2024- employees on €5bn per year 2026 to support transition underwriting climate adaptation by 2026 in investments2 to support As a transition financing As a As an GLOBAL GLOBAL +9,0004 EXEM
Slide 38: AXA is recognized as sustainable leader
AXA is recognized as sustainable leader Score: 81/100 In DJSI Europe & DJSI World indexes 2023 score: AAA 2023 score: B 2024 score: 68/100 ESG Risk Rating: ESG Score: 4.3/5 with a sector average score of 48 14.1 – Low risk1 In FTSE4Good Index Series 38 1. For the ESG Risk Rating ranking of AXA Group
Slide 39: Scope
Scope ▪ France: includes insurance activities, banking activities and holding ▪ Europe: includes Switzerland (insurance activities), Germany (insurance activities and holding), Belgium (insurance activities and holding) and Luxemburg (insurance activities and holding), United Kingdom and Ireland (in
Slide 40: Glossary (1/2)
Glossary (1/2) ▪ Asset Management net flows: represent inflows of client money less outflows of client money. Net inflows are used by the Management to measure the impact of sales efforts, product attractiveness (mainly dependent on performance and innovation), and the general market trend in invest
Slide 41: Glossary (2/2)
Glossary (2/2) ▪ New Business Contractual Service Margin (NB CSM): a component of the carrying amount of the asset or liability for newly issued insurance contracts during the period, representing the unearned profit to be recognized as insurance contract services are provided ▪ New Business Value m
Slide 42: AXA Investor Relations: Keep in touch
AXA Investor Relations | Keep in touch Meet our management Contact us Investor Relations +33 1 40 75 48 42 investor.relations@axa.com September Europe Roadshows Europe September US Roadshows US Follow us www.axa.com September 10 Kepler Cheuvreux Conference Paris September 25-26 Bank of America Finan
Slide 43: Thank you
Thank you Half Year 2024 Earnings August 1, 2024