Axa Sa · EURONEXT:CS
Axa Sa — H1 2015 Earnings Presentation
111 slides from Axa Sa's earnings presentation, Aug 4, 2015
Slide 1: AXA Half Year 2015 Earnings Presentation
AXA HALF YEAR 2015 EARNINGS Presentation August 4, 2015
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: Table of Contents
TABLE OF CONTENTS INTRODUCTION & HIGHLIGHTS PAGE A4 Henri de Castries, Chairman & CEO 1H15 FINANCIAL PERFORMANCE PAGE A17 Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO CONCLUDING REMARKS PAGE A41 Henri de Castries, Chairman & CEO A3 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 4: Introduction & highlights
Introduction & highlights Henri de Castries, Chairman & CEO
Slide 5: 1H15 results
1H15 results Strong earnings per share growth in the first half of 2015 Consistently strong economic solvency ratio Well positioned to achieve Ambition AXA targets Growth: mature markets, high growth markets, digital A5 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 6: Strong earnings per share growth in 1H15
Strong earnings per share growth in 1H15 Underlying Earnings Underlying Earnings per share In Euro billion In Euro +2% +11% 3.1 1.20 2.8 1.08 +12% Reported growth 1H14 1H15 1H14 1H15 Adjusted Earnings Adjusted Earnings per share +3% In Euro billion In Euro +12% 3.5 3.1 1.36 1.22 +12% Reported growth
Slide 7: Consistently strong economic solvency ratio
Consistently strong economic solvency ratio Economic Solvency1 215% 201% Ambition AXA strategy driving consistently 190% strong economic solvency ratio Internal model approval process on track Capital management framework will be presented in December 2015 FY14 1Q15 1H15 A7 | Half Year 2015 Earnings
Slide 8: Well positioned to achieve Ambition AXA targets
Well positioned to achieve Ambition AXA targets UNDERLYING EARNINGS PER SHARE GROUP OPERATING FREE CASH FLOWS In Euro per share In Euro billion Cumulative operating free cash flows: Euro 19.6 billion 5.2 5.5 1.20 Ambition Ambition 1.08 4.7 1.02 AXA 2010- 4.2 AXA 2011- 0.90 0.92 0.85 2015 2015 CAGR c
Slide 9: Growing Life & Savings with profitable product mix
Growing Life & Savings with profitable product mix APE NBV In Euro billion In Euro billion +5% +16% +5% +17% 3.7 Reported growth 1.3 Reported growth 14% 3.2 1.1 Mutual funds & other 12% 37% Unit-Linked 35% 12% NBV margin 33.8% 34.0% G/A1 Savings 15% 37% G/A Protection & Health 38% 1H14 1H15 1H14 1H1
Slide 10: Disciplined P&C growth focusing on profitability
Disciplined P&C growth focusing on profitability Gross revenues Current year combined ratio In Euro billion +1% +8% -0.1 pt 18.2 Reported growth 97.1% 96.9% 16.8 1H14 1H15 1H14 1H15 Changes are on a comparable basis for revenues and at constant Forex for current year combined ratio unless otherwise
Slide 11: Strong Asset Management net inflows and growing earnings
Strong Asset Management net inflows and growing earnings Net inflows Of which Underlying Earnings Euro 19bn in Euro billion from Joint in Euro million Ventures in Asia1 +6% vs. Euro 5bn +21% in 1H14 222 Reported growth 35 184 22 14 8 FY13 FY14 1H14 1H15 1H14 1H15 Changes are at constant Forex unless
Slide 12: Disciplined cost savings strategy
Disciplined cost savings strategy In Euro billion 1.9 1.8 1.6 0.2 FY11-FY14 1H15 FY11-1H15 Ambition Total AXA 2015 A12 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 13: Three sources of growth
Three sources of growth Mature High growth Digital markets markets Strategic allocation of Focus on profitable growth Digital transformation on capital to growth areas and disciplined capital every part of the value and products reallocation chain A13 | Half Year 2015 Earnings | Presentation | Augus
Slide 14: Growth in both mature and high growth markets
Growth in both mature and high growth markets MATURE MARKETS HIGH GROWTH MARKETS Continental Europe L&S China L&S: ICBC – AXA Life Organic growth Organic growth +8% 1H10-1H15 APE CAGR for Protection & Health and Unit-Linked +64% 1H10-1H15 APE1 CAGR Pending acquisition: Genworth Lifestyle Protection
Slide 15: Data Innovation Lab – a concrete reality for AXA
Data Innovation Lab – a concrete reality for AXA 45 FTEs in the lab and over 200 data Founded in 2014 specialists in AXA entities Present in Paris, Singapore 35 projects (5 examples below) Across the value chain Acquire Select Serve Extend Transform Audience & Consumer Household Intelligent
Slide 16: Creating digital assets for AXA
Creating digital assets for AXA SCOUT ENGAGE INVEST Detect emerging Attract new skills & Gain knowledge trends deploy talent Support promising Accelerate digital Learn, pilot, implement companies awareness (San Francisco, Shanghai) (Paris, Singapore) (Europe, North America, Asia) A16 | Half Year 201
Slide 17: 1H15 Financial performance
1H15 Financial performance Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO
Slide 18: 1H15 Financial performance
1H15 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A18 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 19: Underlying earnings
UNDERLYING EARNINGS UNDERLYING EARNINGS UNDERLYING EARNINGS BY SEGMENT In Euro million Constant In Euro million 1H14 1H15 Forex +2% 3,102 Life & Savings 1,651 1,862 +2% 2,777 Property & Casualty 1,226 1,286 0% Asset Management 184 222 +6% International Insurance 135 126 - 11% Banking 68 56 - 17% Hol
Slide 20: Adjusted earnings
ADJUSTED EARNINGS ADJUSTED EARNINGS DETAILS OF ADJUSTED EARNINGS In Euro million +3% In Euro million 1H14 1H15 3,485 3,112 Underlying Earnings 2,777 3,102 Net realized capital gains/losses 335 382 o/w realized capital gains 439 471 o/w net impairments -91 -86 o/w hedging of equity portfolio -13 -2 A
Slide 21: Net income
NET INCOME NET INCOME DETAILS OF NET INCOME In Euro million In Euro million 1H14 1H15 -7% Adjusted Earnings 3,112 3,485 3,008 3,077 Change in fair value & Forex 37 -250 o/w gains (losses) on interest rate economic hedges not 78 -411 eligible for hedge accounting under IAS 39 o/w gains (losses) on Fo
Slide 22: 1H15 Financial performance
1H15 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A22 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 23: L&S – New business sales and margins by market
L&S – NEW BUSINESS SALES AND MARGINS BY MARKET High growth Mature markets Total In Euro million markets Total +5% +3% 3,687 3,181 3,007 2,668 New business +12% sales (APE) + 513 680 = 1H14 1H15 1H14 1H15 1H14 1H15 +1 pt 0 pt 47% 48% 0 pt 34% 34% 31% 31% New business margin + = 1H14 1H15 1H14 1H15 1H
Slide 24: L&S – New business sales and margins by market
L&S – NEW BUSINESS SALES AND MARGINS BY MARKET In Euro million APE NBV Net Flows (Euro million) margin (Euro billion) Business line 1H15 change 1H15 1H14 1H15 G/A Protection & Health 1,360 +2% 54% +4.3 +5.1 G/A Savings 455 -8% 14% -1.5 -1.8 Unit-Linked 1,350 +8% 31% -0.1 +1.6 Mutual Funds & Other 52
Slide 25: L&S – Pre-tax underlying earnings by business
L&S – PRE-TAX UNDERLYING EARNINGS BY BUSINESS TOTAL G/A PROTECTION G/A SAVINGS UNIT-LINKED LIFE & SAVINGS1 & HEALTH In Euro million In Euro million In Euro million In Euro million +3% 2,388 2,129 -3% 1,129 1,176 +32% -12% 737 466 425 485 1H14 1H15 1H14 1H15 1H14 1H15 1H14 1H15 Higher mortality margi
Slide 26: 1H15 Financial performance
1H15 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A26 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 27: P&C – Revenues by segment
P&C – REVENUES BY SEGMENT TOTAL PERSONAL LINES In Euro million In Euro million +2% +1% 9,605 10,231 18,183 16,820 • Average price increase of +1.9% • Motor revenues up 3% • Non-motor revenues up 1% 1H14 1H15 COMMERCIAL LINES In Euro million 0% 7,155 7,876 • Average price increase of +1.8% • Revenues
Slide 28: P&C – Price evolution by country and segment
P&C – PRICE EVOLUTION BY COUNTRY AND SEGMENT PERSONAL LINES COMMERCIAL LINES 1H15 Price Revenue Price Revenue increase1 evolution growth increase evolution11 growth FY15 market pricing trends Increasing competition in both Personal and France +2.1% +0.2% +4.6% -0.3% Commercial Lines Stabilization in
Slide 29: P&C – Revenues and margins by market
P&C – REVENUES AND MARGINS BY MARKET High growth In Euro million Mature markets Direct Total markets +1% 0% o/w Asia +6% 18,183 o/w MedLa +3% 16,820 13,349 14,082 Revenues + 2,269 +4% 2,712 + +7% = 1,202 1,389 1H14 1H15 1H14 1H15 1H14 1H15 1H14 1H15 Mainly attributable to Turkey (+1.9 points) and Me
Slide 30: P&C – Underlying earnings
P&C – UNDERLYING EARNINGS P&C UNDERLYING EARNINGS COMBINED RATIO In Euro million Current year Prior year reserve All-year combined ratio + developments combined ratio + Lower natural catastrophe charges + Price increases and lower claims frequency 0% - Higher claims severity 1,286 1,226 97.1% 95.8%
Slide 31: 1H15 Financial performance
1H15 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A31 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 32: AM – Assets under management
AM – ASSETS UNDER MANAGEMENT Average AUM and net flows in Euro billion Revenues in Euro million Net flows Average AUM Revenues (incl. Joint Ventures)1 (excl. Joint Ventures) (excl. Joint Ventures) +11% +8% +28 540 626 563 632 +11 1H14 1H15 1H14 1H15 1H14 1H15 Euro 19 billion from Joint Ventures in A
Slide 33: AM – Underlying earnings
AM – UNDERLYING EARNINGS ASSET MANAGEMENT In Euro million In Euro million +7% +6% 115 101 222 184 1H14 1H15 In Euro million +5% 108 83 1H14 1H15 1H14 1H15 Changes are at constant Forex Full detail in appendix on pages B36 to B37 A33 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 34: 1H15 Financial performance
1H15 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A34 | Half Year 2015 Earnings | Presentation | August 4, 2015
Slide 35: Asset & liability management (1/3)
ASSET & LIABILITY MANAGEMENT (1/3) Diversified and resilient investment portfolio 1H15 Total General Account Limited yield dilution invested assets 83% in Fixed income Fixed income Assets duration as at June 30, 2015 Life & Savings 7.7 years Real estate Alternative investments1 Property & Casualty 5
Slide 36: Asset & liability management (2/3)
ASSET & LIABILITY MANAGEMENT (2/3) L&S General Account investment spreads and margin Inforce business New business Spread above Resilient investment Spread above guaranteed rates margin1 guaranteed rate +160 bps 79 bps 78 bps Guidance: 3.7% 70-80 bps +160 bps 2.1% 2.1% 0.5% 1H15* 1H14* 1H15* 1H15* Y
Slide 37: Asset & liability management (3/3)
ASSET & LIABILITY MANAGEMENT (3/3) Well diversified and high quality new investments New fixed income investments in 1H151 Resilient new investment yield ~10% Below Investment ~3% Grade credit1 1H15 investment rate on Fixed Income assets ABS for Life & Savings and Property & Casualty entities 1H152
Slide 38: Shareholders' equity
SHAREHOLDERS’ EQUITY Shareholders’ Equity Key drivers of change In Euro billion In Euro billion 1H15 vs. FY14 + Forex movements net of hedging +3.4 66.9 65.2 + Net income for the period +3.1 - Change in net unrealized capital gains -2.0 - Dividends -2.3 * - Subordinated debt -0.2 * + Change in pensi
Slide 39: Debt gearing
DEBT GEARING Net debt Debt ratios FY14 1H15 In Euro billion 13.5 14.1 Debt 24% 23% Gearing 9.1 9.5 Interest 9.9x 11.9x Cover2 Ratings 6.8 7.1 A+ as of 15/10/2014 positive 1.6 0.6 -4.0 -3.1 Aa3 as of 09/05/2014 stable FY14 1H15 AA- as of 04/11/2014 stable Undated subordinated debt Senior debt Subordi
Slide 40: Economic solvency
ECONOMIC SOLVENCY Economic Solvency ratioa Key sensitivities Economic Solvency Ratio as of June 30, 2015 215% 201% 215% ratio Interest rate +100 bps 224% Interest rate -100 bps 193% 61.0 Equity markets +25% 216% 54.4 In Euro billion 27.1 28.4 Available capital Equity markets -25% 210% Required capit
Slide 41: Concluding remarks
Concluding remarks Henri de Castries, Chairman & CEO
Slide 42: Concluding remarks
Concluding remarks CONTINUOUS 1H15 GOING DELIVERY HIGHLIGHTS FORWARD Profitable growth Results benefitting from Well positioned to diversification achieve Ambition AXA Strong balance sheet plan in 2015 Continued resilience to Disciplined ALM low rates Multiple sources of growth Confi
Slide 43: Q&A Half Year 2015 Earnings
Q&A HALF YEAR 2015 EARNINGS
Slide 44: Notes
NOTES Page A7 1. The Economic Solvency ratio is based on AXA’s internal model calibrated based on adverse 1/200 years shock and assuming US equivalence. AXA’s internal model is subject to a comprehensive review and approval process being conducted by ACPR as part of the implementation process around
Slide 45: Definitions
DEFINITIONS AXA’s 1H15 financial statements are subject to a completion of limited review by AXA’s independent auditors. AXA's 1H15 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of June 30, 2015. Underlying Earnings, Adju
Slide 46: Appendices
AXA HALF YEAR 2015 EARNINGS Appendices August 4, 2015
Slide 47: 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 48: Table of Content
TABLE OF CONTENT BUSINESS OVERVIEW B4 GROUP B9 LIFE & SAVINGS B13 PROPERTY & CASUALTY B29 ASSET MANAGEMENT B35 BALANCE SHEET B38 CORPORATE RESPONSIBILITY B64 B3 | Half Year 2015 Earnings | Appendices | August 4, 2015
Slide 49: Business overview
Business overview
Slide 50: Life & Savings | Scope overview
LIFE & SAVINGS | Scope overview Global footprint Well balanced business mix 1H15 APE by geography 1H15 APE by business Unit-Linked G/A Protection & Health France 37% 37% 24% US Mutual Funds & 23% other G/A Savings UK 14% 12% 9% Asia (incl. Japan) 22% MedLA1 Strong proprietary networks 9% NORCEE2 1H1
Slide 51: Property & Casualty | Scope overview
PROPERTY & CASUALTY | Scope overview Global footprint Strong presence in Motor 1H15 Revenues by geography 1H15 Revenues by business Health 11% Workers’ Asia compensation 3% 6% Other1 Motor Belgium 0% Property 43% 6% 22% France Direct 18% business unit Liability 8% Construction 7% 1% Other UK & 8% Sw
Slide 52: AXA's footprint in high growth markets
AXA’S FOOTPRINT IN HIGH GROWTH MARKETS Life & Savings Property & Casualty 1H15 APE by geography 1H15 Revenues by geography Poland Morocco Other 3% 5% 2% Czech Republic Thailand 3% Mexico Singapore 2% Philippines 2% 5% 3% Singapore Malaysia 6% Hong Kong 6% Mexico 41% Colombia 27% Indonesia 10% 8% Hon
Slide 53: Asset Management | Scope overview
ASSET MANAGEMENT| Scope overview Complementary business models • Multi-expert model: structured by “Expertise” • Risk-reducing, return-seeking, diversifying • Expertise in fixed income, equities, strategies and customized solutions PRODUCT quantitative equities • Expertise in actively managed equity
Slide 54: Group
Group
Slide 55: Revenues
REVENUES Revenues by segment Change on a Change on a In Euro million 1H14 1H15 comparable reported basis basis Life & Savings 29,039 31,919 +10% +1% Property & Casualty 16,820 18,183 +8% +1% Asset Management 1,593 1,956 +23% +6% International Insurance 1,966 2,162 +10% +7% Banking 287 302 +5% +5% Re
Slide 56: Underlying earnings by geography
UNDERLYING EARNINGS BY GEOGRAPHY Underlying Earnings In Euro million Change on Change at 1H14 1H15 a reported constant forex basis Life & Savings 1,651 1,862 +13% +2% United States 431 513 +19% -3% France 397 421 +6% +6% NORCEE1 349 352 +1% -6% UK 13 27 +110% +87% Asia-Pacific (incl. Japan) 394 487
Slide 57: 1H15 Key sensitivities
1H15 KEY SENSITIVITIES P&L Balance Sheet 1 In Euro billion Impairments net of Change in fair value Total impact in Net Net unrealized capital hedges through and Forex through Income (incl. impact gains through through Adjusted Adjusted Earnings Net Income Earnings) Shareholders' Equity -25% -0.3 -0.
Slide 58: Life & Savings
Life & Savings
Slide 59: Life & Savings
LIFE & SAVINGS 1 REVENUES, NEW BUSINESS VOLUMES AND PROFITABILITY Page B15 2 UNDERLYING EARNINGS MARGIN ANALYSIS Page B16 3 UNDERLYING EARNINGS MARGIN ANALYSIS BY BUSINESS Page B22 4 FOCUS ON THE US Page B28 B14 | Half Year 2015 Earnings | Appendices | August 4, 2015
Slide 60: L&S | Revenues and net inflows
1 L&S | Revenues and net inflows 1H15 L&S revenues by region L&S net inflows In Euro billion Net flows by country/region In Euro billion 1H14 1H15 France +1.2 +1.8 MedLA NORCEE +2.0 +2.4 -8% United States -1.2 0.0 3.2 8.2 United Kingdom +0.1 -0.2 France Asia Pacific (incl. Japan) +0.7 +1.2 +9% MedLA
Slide 61: L&S | Underlying Earnings margin analysis
2 L&S | Underlying Earnings margin analysis Gross Margin Expenses In Euro million In Euro million Comp. Comp. 1H15 1 1H15 1 Change Change 4 4 2 Margin on revenues 2,699 +12% Acquisition expenses 2,271 +15% Margin on assets 2,980 +3% Admin. Expenses 1,565 +5% Technical margin 589 +23% VBI amortizatio
Slide 62: L&S | Margin Analysis – Margin on revenues
2 L&S | Margin Analysis Margin on revenues Details of margin on revenues 1 Average margin on L&S revenues 8.5% +0.8 pt +0.6pt business mix Detail by product +0.2pt country mix G/A Protection & Health: 13.1% G/A Savings: 2.9% Unit-Linked: 4.6% Mutual funds & other: 5.9% 1 Margin on revenues x Euro 2,
Slide 63: L&S | Margin Analysis – Unit-Linked management fees
2 L&S | Margin Analysis Unit-Linked management fees Details of margin on Unit-Linked assets Average management fees on Unit- Linked reserves 72 bps -2 bps 144 bps annualized Unit-Linked management -2 bps business mix 0 bp country mix fees x Euro 1,381 million +4% Margin on assets1 Unit-Linked averag
Slide 64: L&S | Margin Analysis – Investment margin
2 L&S | Margin Analysis Investment margin Details of margin on General Account assets Unit-Linked management fees Euro 1,381 million +4% Average management fees on general Margin on assets1 + account reserves Euro 2,980 million +3% 39 bps -1 bp 1. Including other fees (mainly mutual 78 bps annualize
Slide 65: L&S | Margin Analysis – Technical margin
2 L&S | Margin Analysis Technical margin Details of technical margin 1 Mortality & morbidity margin and other Euro 825 million +19% Technical margin + Euro 589 million +23% GMxB Variable Annuity margin Euro -236 million -8% In Euro million o/w basis -6 o/w volatility (equity and interest rates) 0 o/
Slide 66: L&S | Focus on gross technical margin
2 L&S | Margin Analysis Focus on gross technical margin Gross mortality, morbidity & surrender margin (pre-tax) In Euro million 1H15 mortality, morbidity and surrender margin evolution 825 mainly explained by: 643 • Euro +0.1 billion in the US, mainly due to improved mortality margin • Euro +0.1 bil
Slide 67: L&S | Underlying Earnings by business
3 L&S | Underlying Earnings by business 1 Euro million 1H14 1H15 % change 1on comp. basis1 G/A Protection & Health 1,129 1,176 -3% G/A Savings 466 425 -12% Unit-Linked 485 737 +32% Mutual funds & Other 48 51 -5% Pre-tax Underlying Earnings 2,129 2,388 +3% Tax and Minority interests -478 -526 Underly
Slide 68: L&S | 1H15 Margin analysis by business
3 L&S | 1H15 Margin analysis by business G/A Protection Mutual Funds In Euro million G/A savings Unit-Linked & Health & Other 8% Margin on 2,018 169 441 revenues % of GWP 78bps* Investment 450 832 81 margin of avg. G/A reserves 144bps* Management 1,381 fees of avg. UL reserves Technical 743 20 -156
Slide 69: G/A Protection & Health margin analysis
3 L&S | Margin Analysis by business G/A Protection & Health Technical result Net investment margin In Euro million Comp. In Euro million Comp. 1H15 1 1H15 Change Change1 Protection & Health average Protection & Health GWP 15,448 0% 171,671 +3% reserves x x Protection & Health Protection & Health 26
Slide 70: G/A Protection & Health – Combined ratio
3 L&S | Margin Analysis by business G/A Protection & Health – Details on Combined Ratio Combined ratio Expense ratio1 Expense ratio deteriorated by 1.3 points mainly -0.1 pt following accelerated DAC amortization in the 95.5% 95.5% US and higher VBI amortization in Switzerland Expense 12.2% and Germ
Slide 71: G/A Savings margin analysis
3 L&S | Margin Analysis by business G/A Savings In Euro million Comp. Comp. 1H15 1 1H15 1 change change G/A Savings G/A Savings 5,729 -5% 181,873 +3% Gross revenues Average reserves x x Margin on G/A Savings 46 bps 2.9% +1.4 pts 91 bps annualized 0 bp G/A Savings Investment spread Comp. 1H15 1 chang
Slide 72: Unit-Linked margin analysis
3 L&S | Margin Analysis by business Unit-Linked In Euro million Comp. Comp. 1H15 1H15 1 change 1 change Unit-Linked Gross Unit-Linked 9,546 +4% 191,122 +7% revenues Average reserves x x Average margin on UL average 72 bps 4.6% +1.0 pt -2 bps UL revenues Management fees 144 bps annualized Comp. 1H15
Slide 73: L&S | Focus on AXA US
4 L&S | Focus on AXA US US Variable Annuity GMxB Underlying Earnings In Euro million, net of DAC and tax1 FY13 FY14 1H14 1H15 Total Variable Annuity base fees & other, less 338 296 153 185 expenses GMxB hedge margin -50 -74 -35 -10 o/w Basis -1 -26 -8 -1 o/w Volatility -15 -7 -6 1 o/w Interest rates
Slide 74: Property & Casualty
Property & Casualty
Slide 75: P&C | Revenues and net new contracts
P&C | Revenues and net new contracts 1H15 P&C revenues by region 1H15 P&C personal net new contracts High growth markets In Euro billion In thousands Direct Mature markets Direct +328 +7% +22 France +154 Asia 1.4 0% +6% 0.6 3.3 +200 +152 3.9 -79 MedLA 2.5 UK & Ireland -1% +4% -194 NORCEE -73 6.5 +1%
Slide 76: P&C | Underlying Earnings analysis
P&C | Underlying Earnings analysis Net technical result Net investment income In Euro million In Euro million 1H15 Change 1H15 Change Revenues 18,183 +1% Average P&C assets 60,062 +5% X X 1 3 Combined ratio (in %) 95.1% - 0.6 pt Average Asset Yield 3.6% -50bps Net technical result2 754 +17% Net inve
Slide 77: P&C | Details on Combined Ratio
P&C | Details on Combined Ratio Combined ratio Expense ratio roll-forward +0.2pt +0.1pt 26.2% 25.9% 95.8% 95.1% 1H14 Acquisition Administrative 1H15 Expense Expenses Expenses 25.9% 26.2% Ratio +0.3 pt change on a comparable basis Loss ratio roll-forward Loss 69.9% 69.0% Ratio +1.1pts 69.9% 69.0% -1.
Slide 78: P&C | Details on current year loss ratios
P&C | Details on current year loss ratios Personal Motor Personal non Motor +2.2pts +0.2pt 75.3% 74.6% 64.2% -0.9pt -0.9pt +1.1pts 61.6% -1.9pts -0.3pt -1.5pts 1H14 CY Nat Cat Price effect Frequency & Other1 1H15 CY 1H14 CY Nat Cat Price effect Frequency & Other1 1H15 CY loss ratio severity loss rat
Slide 79: P&C | Focus on reserve developments
P&C | Focus on reserve developments Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 2.0% 2.1% 1.8% 1.8% 1.4% 1.7% 1.3% 0.9% 1.2% 1.2% 0.3% 0.6% FY04 FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 HY14 FY14 1H15 Reserving ratio
Slide 80: Asset Management
Asset Management
Slide 81: Asset Management | Underlying Earnings
ASSET MANAGEMENT | Underlying Earnings Details of Asset Management margin analysis Margin* Expenses* In Euro million In Euro million 1H15 Change** 1H15 Change** Asset Management fees 1,701 +6% Asset Management expenses 1,271 +4% Distribution revenues 254 +6% Investment result 46 +21% Distribution ex
Slide 82: Asset Management | Revenues details
ASSET MANAGEMENT | Underlying Earnings Details on Asset Management revenues Asset management fees on Average Assets under Management * 31 bps -1 bp * Asset Management fees x Euro 1 701 million +6% o/w perfomance fees Euro 37 million (-24%) o/w research fees Euro 222 million (+2%) Average Assets unde
Slide 83: Balance Sheet
Balance Sheet
Slide 84: Balance Sheet
BALANCE SHEET 1 GENERAL ACCOUNT INVESTED ASSETS PAGE B40 1.1 Government bonds & related B41 1.2 Corporate bonds B42 1.3 CDS B45 1.4 ABS B46 1.5 Equity B50 1.6 Real Estate B52 1.7 Hedge Funds B53 1.8 Private Equity B54 1.9 Mortgage loans B55 2 FOCUS ON NET UNREALIZED CAPITAL GAINS Page B56 2.1 Focus
Slide 85: General account invested assets
GENERAL ACCOUNT INVESTED ASSETS Invested assets (100%) FY14 FY14 % % 1H15 % in Euro billion Published Restated1 Changes in Fixed income 437 84% 437 84% 451 83% asset mix Forex: positive impact o/w Govies and related 246 47% 223 43% 229 42% from the strengthening of USD, CHF, JPY, o/w Corporate bonds
Slide 86: Government bonds and related
1.1 GOVERNMENT BONDS AND RELATED Breakdown by geography Breakdown by segment Other2 Ireland 1% 2% P&C The Netherlands 11% Other 2% 6% Supranational Institutions 3% Austria L&S France 3% 88% 20% Spain 6% Gross1 unrealized capital US 8% Germany gains and losses 11% In Euro billion Switzerland 8% 43.9
Slide 87: Corporate bonds
1.2 CORPORATE BONDS Breakdown by industry Breakdown by segment Other2 Technology 2% 2% P&C Basic materials 5% 14% Other 2% Consumer cyclical 6% L&S 84% Energy Banks 7% 32% Industrial Gross1 unrealized capital 8% gains and losses In Euro billion Other financials 8% 8.9 8.4 Communications 8% Consumer
Slide 88: Focus on banking corporate bonds
1.2 FOCUS ON BANKING CORPORATE BONDS As of June 30, 2015 Gross market Senior debt Subordinated debt value Total Non Upper in Euro billion Secured Lower Tier 2 Tier 1 Preferred secured Tier 2 Germany 9.8 0.4 1.1 0.3 0.0 0.0 11.6 France 4.7 3.5 1.5 0.0 0.0 0.0 9.7 United States 0.2 7.8 0.8 0.0 0.1 0.0
Slide 89: Corporate bonds breakdown by entity and rating
1.2 CORPORATE BONDS BREAKDOWN BY ENTITY AND RATING (including CDS) P = Participating NP = Non-participating in Euro billion France US Belgium Germany Switzerland Japan Other1 Total As of June 30, 2015 P NP P NP P NP P NP P NP NP P NP P NP AAA 2.3 1.0 0.1 0.5 0.1 0.1 7.9 1.0 1.1 0.3 0.5 0.2 0.3 11.7
Slide 90: Focus on CDS
1.3 FOCUS ON CDS CDS mainly used as alternative to investment grade corporate bonds • Net CDS exposure excluding NBT strategy mainly corresponds to an “overlay” strategy (synthetically replicate corporate bonds by selling CDS on top of government bonds to enhance return) • NBT strategy: buy credit d
Slide 91: Asset backed securities
1.4 ASSET BACKED SECURITIES Breakdown by asset type1 Breakdown by rating Mortgage-backed Other asset-backed Prime Residential 4% CDO 5% NR/Equity Below 5% Consumer ABS2 investment 5% grade 14% Commercial MBS 9% CLO BBB 69% 4% AAA US Subprime, A 45% Alt-A & NC 8% RMBS 9% AA 23% Total: Euro 10 billion
Slide 92: Credit risk management: ABS investments
1.4 CREDIT RISK MANAGEMENT: ABS INVESTMENTS Group ABS exposure increased mainly driven by: Net inflows of Euro 0.3 billion composed of Euro 1.5 billion of purchases (mainly related to CLOs programs) partially offset by Euro 1.2 billion of redemptions and sales A positive market effect of Euro 0.6 bi
Slide 93: Focus on mortgage-backed securities
1.4 FOCUS ON MORTGAGE-BACKED SECURITIES Euro million Prime Residential US Subprime As of June 30, 2015 Commercial MBS UK & NC RMBS US Alt-A RMBS MBS RMBS (unless indicated) % of par @ 31/12/12 88% 61% 71% 52% 52% % of par @ 31/12/13 93% 85% 78% 63% 66% % of par @ 31/12/14 97% 64% 91% 73% 74% % of pa
Slide 94: Focus on CDO
1.4 FOCUS ON CDO Euro million High Other Investment grade Structured Finance Total As of June 30, 2015 Yield CDOs AAA - - - - - AA - 9 - 4 13 A 251 - - - 251 BBB 41 - - 2 43 Below investment grade - 11 19 19 49 Equity / Non rated 65 10 2 103 180 Total exposure 356 30 21 128 535 Shareholders’ exposur
Slide 95: Listed equity portfolio overview
1.5 LISTED EQUITY PORTFOLIO OVERVIEW Breakdown by geography Breakdown by segment Other2 3% P&C 22% Rest of the World 15% France L&S Other Eurozone 21% countries 75% 9% UK Gross1 unrealized capital 5% gains and losses Belgium US 6% 20% In Euro billion Japan 4.0 6% 3.4 Switzerland 8% Germany 10% Total
Slide 96: Shareholders' exposure to listed equity
1.5 SHAREHOLDERS’ EXPOSURE TO LISTED EQUITY Estimated shareholders’ exposure to listed equity (in Euro billion) FY14 1H15 18 21 7 8 Gross Group share Gross Group share nominal 100% net of hedge, nominal 100% net of hedge, tax & PB tax & PB B51 | Half Year 2015 Earnings | Appendices | August 4, 2015
Slide 97: Real estate investments
1.6 REAL ESTATE INVESTMENTS Defensive portfolio with good performance over the long term Key indicators Market value 1H15 market value by country Split by type (in Euro billion) 9% Others 291 8% France Switz. Germany Belgium US 27% 8% France Office ~ 46% ~ 41% ~ 61% ~ 75% Germany Residential ~ 10% ~
Slide 98: Hedge fund investments
1.7 HEDGE FUND INVESTMENTS Diversified portfolio of hedge funds Key indicators Market value Exposure and concentration risk (in Euro billion) 5 • Management of diversified funds of hedge funds and Alternative Credit • Top 10 fund managers in diversified portfolios represent ~55% of market value • Fo
Slide 99: Private equity investments
1.8 PRIVATE EQUITY INVESTMENTS Diversified portfolio built over the long run Key indicators* Market value Breakdown by geography Breakdown by expertise (in Euro billion) 3% 7% 11% 5% Other Infrastructure Venture Japan 9 14% Private debt 33% US 57% Europe 1H15 70% Buy-out Environment AXA portfolio re
Slide 100: Mortgage loans & other
1.9 MORTGAGE LOANS & OTHER Low risk mortgage loan portfolio Key indicators Market value 1H15 market value by entity2 (in Euro billion) 8% Residential 9% Other 281,2 92% 91% Residential Very secured Commercial 10% 23% portfolio: Germany 9% Commercial France 1H15 default rate 0.04% 52% Residential 37%
Slide 101: Focus on net unrealized capital gains
2 FOCUS ON NET UNREALIZED CAPITAL GAINS Balance sheet net unrealized Off balance sheet net unrealized capital gains1 capital gains In Euro billion In Euro billion 15.3 2.0 13.9 2.4 2.4 Equities & Other 2 2.1 Corporate bonds 4.6 Government bonds 4.1 3 and related Real Estate and loans 10.9 9.4 FY14 p
Slide 102: Exposure to Eurozone peripheral countries government bonds
2.1 FOCUS ON EXPOSURE TO EUROZONE PERIPHERAL COUNTRIES GOVERNMENT BONDS Exposure by issuer Gross book value Gross book value Gross book value Gross market value in Euro billion June 30, 2014 December 31, 2014 June 30, 2015 June 30, 2015 Italy 19.5 19.4 18.9 22.2 Spain 11.2 11.3 12.1 14.4 Ireland 3.0
Slide 103: Asset & liability management (1/2)
3 ASSET & LIABILITY MANAGEMENT (1/2) L&S General Account investment spreads and margin Inforce business New business Spread above Resilient investment Spread above guaranteed rates margin1 guaranteed rate +160 bps 79 bps 78 bps Guidance: 3.7% 70-80 bps +160 bps 2.1% 2.1% 0.5% 1H15* 1H14* 1H15* 1H15*
Slide 104: Asset & liability management (2/2)
3 ASSET & LIABILITY MANAGEMENT (2/2) L&S General Account investment spreads for main entities Inforce New business 3.9% 310bps 2.0% 200bps • Average G/A reserves: Euro 102 billion • G/A Savings new business sales with France 0.8% 0.0% long term guarantees stopped in 1998 1H15* 1H15* 20bps 140bps • A
Slide 105: Solvency I
4 SOLVENCY I Solvency I – Available and Solvency I ratio - Sensitivities Required capital Solvency I 266% 258% Ratio as of June 30, 2015 258% ratio Interest rate +100 bps 199% 67.3 69.1 Interest rate -100 bps 318% In Euro billion Equity markets +25% 273% Available capital 25.3 26.8 Equity markets -2
Slide 106: Solvency I AFR reconciliation to shareholders' equity
4 SOLVENCY I AFR RECONCILIATION TO SHAREHOLDERS’ EQUITY Solvency I Available Financial Resources1 (AFR) In Euro billion 1H15 shareholders’ equity 100% 71 Intangibles -30 Admitted subordinated debt2 +4 Locally admitted assets +3 Real estate3 +11 Pension benefit +4 Other4 +8 1H15 Available capital 69
Slide 107: Economic capital model
4 ECONOMIC CAPITAL MODEL Economic Solvency ratio1 Required capital by geography Holdings & Other 201% 215% 14% France UK 24% 5% Asia Pacific NORCEE 61.0 12% 54.4 29% US 8% MedLA 8% 27.1 28.4 Required capital by risk Operational risk 5% Market risk FY14 1H15 P&C risk 47% 17% Available capital (in Eur
Slide 108: Net financial debt - Long-term maturities
5 NET FINANCIAL DEBT - Long-term maturities Net financial debt Contractual maturity breakdown In Euro billion 13.5 14.1 2.3 2.9 9.1 9.5 6.6 0.3 2.1 2.4 0.2 0.3 2H15 2016 2017-2020 2021-2025 2026-2040 Undated 6.8 7.1 Economic maturity breakdown 1.6 0.6 -4.0 -3.1 0.3 3.4 0.3 2.2 1.0 0.2 0.2 FY14 1H15
Slide 109: Corporate Responsibility
Corporate Responsibility
Slide 110: Main SRI ratings
Main SRI ratings 2014 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) 100/100 General score: 77% General score: 81/100 (vs. s
Slide 111: Responsible Investment strategy
Responsible Investment strategy “ESG + CARBON” INTEGRATION SECTOR GUIDELINES IMPACT INVESTING Long-term ESG integration Implementation of investment Euro 200 million “impact process guidelines for sectors with acute investment” fund of funds environmental or ethical launched in 2013 seeking to creat