Axa Sa · EURONEXT:CS
Axa Sa — FY2015 Earnings Presentation
37 slides from Axa Sa's earnings presentation, Feb 25, 2016
Slide 1: AXA 2015 Full Year Earnings Press Conference
AXA 2015 FULL YEAR EARNINGS Press conference Paris – 25 February 2016
Slide 2: 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 because, by their nature, they are subject to known and
Slide 3: AXA at a glance in 2015
AXA at a glance in 2015 Regions 99 22% EURO BN France revenues1 14% 6% United United Kingdom & Ireland 103 MILLION States 5% clients2 2% Insurance Mediterranean & Direct Underlying Latin America Region 5.6 3% Earnings4 9% EURO BN Intern. Insurance Asia excl. Japan underlying earnings1 31% 7% Japan 1
Slide 4: Agenda
Agenda 1. INTRODUCTION 5. EARNINGS SUMMARY & 2. LIFE, SAVINGS & HEALTH FINANCIAL STRENGTH 3. PROPERTY & CASUALTY 6. CONCLUDING REMARKS 4. ASSET MANAGEMENT 4 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 5: Introduction
1 Introduction Henri de Castries Chairman & Chief Executive Officer
Slide 6: In 2015, AXA successfully delivered on Ambition AXA
In 2015, AXA successfully delivered on Ambition AXA € 99 bn Revenues EARNINGS GROWTH IN 2015 +7%1 € 5.6 bn CONFIRMED FINANCIAL STRENGTH Underlying earnings +10%1 SUCCESSFUL DELIVERY ON AMBITION AXA 205 % Solvency II ratio THE GROUP IS CONTINUING ITS 103 TRANSFORMATION JOURNEY million clients
Slide 7: Ambition AXA is a success
Ambition AXA is a success Ambition AXA priorities… …have led to: High return on Equity Selectivity Strong balance sheet Acceleration Resilient earnings Diversified footprint Efficiency Digital momentum 7 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 8: The financial objectives have been achieved
The financial objectives have been achieved Underlying earnings per share Group operating free cash flows In Euro per share Cumulative operating free cash flows: Euro 25.4 billion 5,8 Ambition 5,2 5,5 Ambition AXA 2010- 4,7 AXA 2011- 2.16 4,2 1.95 2015 2015 1.85 1.69 CAGR cumulative 1.57 1.57 +5
Slide 9: A selective and sustainable growth
A selective and sustainable growth Life, Savings & Health Property & Casualty Improved business mix and increased Continued to grow the business while margins improving profitability In Euro billion In Euro billion Revenues APE NBV margin 7.4 +4%1 CAGR2 31,3 26,0 13% 5% 6% 5.8 Mutual funds & other 1
Slide 10: A strengthened footprint in high growth markets
A strengthened footprint in high growth markets Strong footprint in 2015 Acquisitions since 2010 #1 P&C international insurer Euro Asia #3 Life & Savings international insurer 4.2 billion Med. & #2 P&C insurer in Mexico Euro Latin #3 P&C insurer in Turkey 0.7 billion America #3 insurer in Nigeria Ce
Slide 11: A rapid development in Asia
A rapid development in Asia x2 Euro 2 billion Asia (excl. Japan) Asia (excl. Japan) Annual Premium Equivalent Cumulative Underlying Earnings Life, Savings & Health 1,171 2011-2015 In Euro million In Euro million 584 551 FY101 FY15 461 402 China 362 273 New Business APE Life, Savings & Health +60% 20
Slide 12: Significant savings & investments for the future
Significant savings & investments for the future Cost savings In Euro billion 1.9 1.9 1.7 1.5 Savings net of €950 million invested in digital since 2013 Initial target Updated Updated Actual June 2011 February 2013 August 2014 12 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 13: A digital transformation that is speeding up
A digital transformation that is speeding up Investing across the value chain 22% 30% Distribution, Customer analytics multichannel SCOUT Euro 950 million 2013-15 ENGAGE 34% 15% Automation & process Offer design Seeding the future Euro 230 million in Euro 100 million in Euro 75 million in KAMET 1 IN
Slide 14: Investing and partnering for the future
Investing and partnering for the future All notes are on page 37 of this document 14 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 15: AXA is a leader in corporate responsibility
AXA is a leader in corporate responsibility Divest from the companies most exposed to coal related activities Representing Euro 0.5 billion of divestment Publication of 2015 carbon footprint Signature of the Montreal Pledge Achieved 96th percentile ranking among insurers based on 2015 DJSI score Up
Slide 16: Life, Savings & Health
2 Life, Savings & Health Denis Duverne Deputy CEO
Slide 17: Life, Savings & Health
Life, Savings & Health € 19billion increase in the value of our customers’ Life Insurance invested assets € 12 billion 3 million benefits paid to Protection & Health customers benefited from health customers assistance services 17 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 18: New business sales by activity
New business sales by activity 5% growth in new business Protection Unit-Linked G/A Savings Mutual Funds & Health & Other +4% +12% +12% +22% -7% -6% +7% +20% comp. reported comp. reported comp. reported comp. reported 2,811 2,681 2,395 2,298 999 943 941 786 FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 in
Slide 19: Underlying earnings
Underlying earnings Sustained growth Underlying earnings by business (pre-tax) Underlying earnings +3% +12% comp. reported 29% 3,503 Unit-Linked 3,132 2% Mutual Funds & Other 51% Protection & Health 18% G/A Savings 2014 2015 in Euro million Asset yield on the 3.6% investment portfolio 19 | AXA |Full
Slide 20: Property & Casualty
/ 3 Property & Casualty
Slide 21: Property & Casualty
Property & Casualty €11billion in claims paid to our individual €8 billion in claims paid to our commercial customers customers 4 million customers taken care of by AXA Assistance following a car breakdown 21 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 22: Revenues by market segment
Revenues by market segment Good momentum in Asia and Direct Mature Emerging Direct Total markets markets1 +0% +4% +3% +9% +7% +16% +1% +6% comp. reported comp. reported comp. reported comp. reported 29,460 31,265 o/w Asia 23,374 +8% 22,378 5,159 4,721 2,732 2,361 2014 2015 2014 2015 2014 2015 2014 2
Slide 23: Combined ratio & Underlying earnings
Combined ratio & Underlying earnings Improved combined ratio Combined ratio Underlying earnings -1% +3% comp. reported 96.9% 96.2% 2,158 2,230 2014 2015 2014 2015 in Euro million Asset yield on the 3.6% investment portfolio 23 | AXA |Full Year 2015 Earnings | February 25, 2016 2015
Slide 24: Asset Management
4 Asset Management
Slide 25: Assets Under Management roll-forward
Assets Under Management roll-forward Up by € 88 billion Assets Under Management (AUM) roll-forward in Euro billion 31 1,124 Assets Under 2014 2015 12 Management in Euro billion in Euro billion 42 3 AXA IM 1,036 Assets managed for AXA 400 423 Third party 222 246 Total 623 669 AB Assets managed for AX
Slide 26: Underlying earnings
Underlying earnings Strong growth in net flows Net flows Underlying earnings o/w €34 bn via JVs in Asia vs. €15bn in 2014 42 +1% +14% comp. reported 19 (incl. JVs1) 458 403 2014 2015 in Euro billion 234 211 193 224 3 3 2014 2015 2014 2015 in Euro million in Euro billion All notes are on page 37 of t
Slide 27: Earnings summary & Financial strength
5 Earnings summary & Financial strength
Slide 28: Underlying earnings
Underlying earnings Strong growth of underlying earnings per share Underlying earnings by business (pre-tax)1 Group Underlying Earnings +2% +10% 39% comp. reported Property & Casualty 5,574 and International Insurance 5,060 25% 36% Protection & Health Savings & Asset Management2 2014 2015 in Euro mi
Slide 29: Adjusted earnings & Net income
Adjusted earnings & Net income Growth driven by underlying earnings Adjusted earnings Net income +2% +9% +3% +12% comp. reported comp. reported 6,008 5,617 5,503 5,024 2014 2015 2014 2015 in Euro million in Euro million 29 | AXA |Full Year 2015 Earnings | February 25, 2016
Slide 30: Main financial strength indicators
Main financial strength indicators A robust balance sheet 65.2 68.5 Shareholders’ Mainly reflects net income equity contribution and favorable forex in Euro billion movements. 2014 2015 201% 205% Ratio is up, reflecting the strong Solvency II ratio operating return. 2014 2015 24% 23% Ratio is down,
Slide 31: General Account invested assets
General Account invested assets Good diversification and quality of the investment portfolio Allocation of invested assets New fixed income investments (General Account insurance invested assets) 2015 ~27% 34% Government bonds and related 4% Corporate bonds ~12% Average rating: AA Cash Below Investm
Slide 32: Dividend
Dividend Dividend and payout ratio are increasing Dividend in Euro per share INCREASED ADJUSTED EARNINGS 1.10 0.95 INCREASED OPERATING FREE CASH-FLOWS ROBUST BALANCE SHEET 2014 2015 Payout ratio1 47% All notes are on page 37 of this document 32 | AXA |Full Year 2015 Earnings | February 25, 201
Slide 33: Concluding remarks
6 Concluding remarks Henri de Castries Chairman & Chief Executive Officer
Slide 34: A very strong platform to pursue the transformation of the Group
A very strong platform to pursue the transformation of the Group Balanced business mix Leading global brand3 39% Property & Casualty and International Insurance Underlying earnings1 36% 25% Savings & Asset Protection & Health Management2 Strong balance sheet Top innovative insurance company Solvency
Slide 35: Q&A Session
Q&A Session 2015 Full Year Earnings
Slide 36: SRI Ratings
SRI Ratings 2015 : Sector leader, Ranked “A+” in the 2015 Included in the CDP Climate ranked 1st out of 37. “Assessment Report” Disclosure Leadership Included in Vigeo Euronext (Responsible Investment Index, with a score of indices strategy) 98/100 General score: 87/100 General score: 83% (vs. secto
Slide 37: Notes
Notes Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified. Page 3 1. 2015. 2. As of 12/31/2015. 3. Interbrand ranking 2015. 4. Underlying Earnings (Life & Savings; Property & Casualty; Internati