Axa Sa · EURONEXT:CS
Axa Sa — H1 2010 Earnings Presentation
42 slides from Axa Sa's earnings presentation, Aug 4, 2010
Slide 1: Half Year 2010 Earnings Appendices
Half Year 2010 Earnings August 4, 2010 Appendices
Slide 2: Table of content
Table of content Sensitivities page 3 Details on earnings page 6 Details on assets page 20 Details on solvency and debt page 37 NBV page 41 2 – AXA HY10 Earnings – August 4, 2010
Slide 3: Sensitivities
redefining / standards aA |
Slide 4: 1H10 sensitivities
1H10 sensitivities Impairments Net Income In Euro billion OCI net of hedges (including impairments) -25% -0.6 -0.6 -1.3 Equities +25% 0.0 0.0 +2.0 -100 bps N/S +0.5 +6.8 Interest rates +100 bps N/S -0.3 -6.1 -75 bps 0.0 +0.4 +1.6 Corporate spreads +75 bps 0.0 -0.4 -1.6 Valuation: sprea
Slide 5: US DAC sensitivities to stock market movements
US DAC sensitivities to stock market movements US DAC US 2010 equity market performance Underlying In Euro billion Earnings* -10% 0.0 -25% 0.0 -40% -0.1 * Net of tax 5 – AXA HY10 Earnings – August 4, 2010
Slide 6: Details on Earnings
Details on Earnings redefining / standards aA |
Slide 7: Details on Earnings
Details on Earnings 1 Underlying Earnings by segment page 8 2 Underlying Earnings by region page 9 3 Details of L&S margin analysis page 10 4 Details of P&C margin analysis page 15 5 Details of Asset Management margin analysis page 18 7 – AXA HY10 Earnings – August 4, 2010
Slide 8: Underlying Earnings by business
1 Underlying Earnings by business Change on a Change on a In Euro million 1H09 1H10 reported comparable basis basis Life & Savings 1,232 1,325 +7% +6% Property & Casualty 986 923 -6% -9% Asset Management 176 150 -15% -15% International Insurance 122 144 +18% +17% Banking 15 -22 -249% -245% Holdings
Slide 9: Underlying Earnings by region
2 Underlying Earnings by region In Euro million Underlying Earnings 1H09 1H10 % % Comparable Life & Savings 1,232 1,325 +7% +6% North America 271 229 -15% -16% France 264 345 +30% +30% NORCEE 248 301 +21% +19% UK & Ireland 133 119 -11% -13% Asia-Pacific 253 268 +6% +5% MedLA 64 67 +5% +4% Property &
Slide 10: Details of L&S margin analysis
3 Underlying Earnings Details of L&S margin analysis Life & Savings Property & Casualty Asset Management Gross Margin Expenses Comp. Comp. In Euro million 1H10 In Euro million 1H10 Change* Change* Margin on revenues** 2,372 +4% Acquisition expenses 1,612 -12% Margin on assets 2,714 +20% Admin. expen
Slide 11: Details of L&S margin on revenues
Underlying Earnings 3 Details of L&S margin on revenues Margin on revenues Life & Savings Property & Casualty Asset Management Average margin on L&S revenues* Ê Ê 7.7% +3% +4% business mix Margin on revenues* -1% country mix x Euro 2,372 million +4% Ê Ê Life & Savings revenues Ê Ê Euro 30,881 millio
Slide 12: Details of L&S margin on unit-linked products
Underlying Earnings 3 Details of L&S margin on unit-linked products Unit-linked management fees Life & Savings Property & Casualty Asset Management Average management fees on unit-linked reserves (in bps) 63 bps Ê Ê +1% 126 bps annualized basis Unit-linked -0% business mix management fees +2% countr
Slide 13: Details of L&S margin on General Account products
Underlying Earnings 3 Details of L&S margin on General Account products Investment margin Life & Savings Property & Casualty Asset Management Unit-linked management fees Ê Euro 1,052 million +20% Margin on assets* Average management fees on + general account reserves Euro 2,714 million +20% Ê Ê Ê 39
Slide 14: Details of L&S technical margin
3 Underlying Earnings Details of L&S technical margin Technical margin & other Life & Savings Property & Casualty Asset Management Mortality & morbidity margin & other* Euro 909 million -22% Ê Technical margin Non repeat of 1H09 profit from + restructuring of an Euro 527 million -54% Ê Ê Annuity C
Slide 15: Details of P&C margin analysis
4 Underlying Earnings Details of P&C margin analysis Life & Savings Property & Casualty Asset Management Net technical result Net investment income Comp. Comp. In Euro million 1H10 In Euro million 1H10 Change Change Revenues 15,394 +0% Average P&C assets 56,620 +2% x x Combined ratio* (in %) 98.1% +
Slide 16: Details on P&C Combined Ratio
4 Underlying Earnings Details on P&C Combined Ratio Life & Savings Property & Casualty Asset Management Loss Ratio (%) +0.1 pt Combined Ratio (%) Ê +1.7 pts 98.0% 98.1% 70.4% 70.3% -1.4 pts -0.1 pt HY09 Prior year Current Nat events HY10 Loss 70.3 70.4 reserve accident Ratio Dev. year +0.2 pt change
Slide 17: Details on P&C current year loss ratios
Underlying Earnings 4 Details on P&C current year loss ratios Life & Savings Property & Casualty Asset Management Personal Motor Personal non motor 80.8% -0.2pt -2.0pts +2.1pts 81.1% +0.5pt +0.6pt -2.5pts 73.9% +0.5pt -0.5pt 71.8% HY09 Current Nat cat Price effect Frequency & Others* HY10 Current HY
Slide 18: Details of Asset Management margin analysis
5 Underlying Earnings Details of Asset Management margin analysis Life & Savings Property & Casualty Asset Management Margin Expenses Comp. Comp. In Euro million 1H10 In Euro million 1H10 Change Change Asset Management Asset Management 1,477 +9% 1,187 +4% revenues expenses Distribution revenues 193
Slide 19: Details on Asset Management revenues
5 Underlying Earnings Details on Asset Management revenues Life & Savings Property & Casualty Asset Management Average Asset Management fees on Assets Under Management 17 bps Ê Ê +2% (34 bps annualized basis) Average equity mix down 5 pts to 34% Asset Management revenues x Ê Ê Euro 1,477 million +9%
Slide 20: Details on Assets
Details on Assets redefining / standards aA |
Slide 21: Details on Assets
Details on Assets 1 Government bonds & related page 22 2 Corporate bonds page 23 3 CDS page 24 4 ABS page 26 5 Equity page 32 6 Real Estate page 33 7 Hedge Funds page 34 8 Private Equity page 35 9 Mortgage loans Page 36 21 – AXA HY10 Earnings – August 4, 2010
Slide 22: Government bonds and related
1 Government bonds and related AXA Government bonds portfolio by country (Euro 177 billion gross) Asia 13% US 5% (€23.2bn) (€8.9bn) Other 7% (€11.7bn) Italy 9% (€15.7bn) France 23% (€39.9bn) Spain 5% (€9.1bn) Portugal 1% (€2.5bn) Greece 1% (€1.1bn) Ireland 1% (€1.7bn) NORCEE* 36% (€63.1bn) * AXA NOR
Slide 23: Corporate bonds portfolio
2 Corporate bonds portfolio AXA Corporate bond portfolio by industry A+ average rating (Euro 157 billion gross) Other AAA 7% 12% Consumer Basic Materials Cyclical 4% BBB 5% 23% Others Energy 3% 5% AA A 19% Industrial 39% 6% Financials 47% Utilities Preferred shares: Euro 0.1* billion 8% o/w Tier 1
Slide 24: Corporate bonds breakdown by country
3 Corporate bonds breakdown by country (including CDS) P = Participating NP = Non-participating Euro billion As of June 30, 2010 US UK Japan Germany Switzerland France Other* Total NP NP NP P NP P NP P NP P NP P NP AAA 0 0 1 3 0 4 1 4 2 1 1 13 5 AA 3 1 4 2 0 4 1 6 2 5 4 18 14 A 11 1 7 5 1 6 1 11 4 9
Slide 25: Corporate bonds: focus on CDS overlay strategy
3 Corporate bonds: focus on CDS overlay strategy CDS overlay Investment Strategy: CDS are used as an alternative to investment grade corporate bonds Since December 31, 2009, investment overlay strategy was reduced in favor of physical investment Net Net Euro million Notional Notional As of Dec. 31
Slide 26: Asset Backed Securities by underlying type of asset
4 Asset Backed Securities by underlying type of asset Economic breakdown of ABS by asset type(1) Ca. 61% AAA & AA As of June 30, 2010 Total ABS = Euro 10.3 billion Mortgage-backed Other asset-backed AAA 38% AA UK RMBS 23% € 0.3 billion NR/Equity A US Subprime & Alt-A 5% 9% CLO € 0.8 billion € 3.0 bi
Slide 27: Credit risk management: ABS investments
4 Credit risk management: ABS investments Group ABS exposure decreased slightly by 1% mainly driven by: • - 6% scope impact due to the Aus/NZ and UK Life assets held for sale • +6% forex impact due to the Euro depreciation against other currencies • +1% increase of the overall valuation including IG
Slide 28: Focus on Mortgage-Backed Securities
4 Focus on Mortgage-Backed Securities Euro million Prime Residential US Subprime As of June 30, 2010 Commercial MBS UK RMBS US Alt-A RMBS MBS RMBS (unless indicated) % of par @ 31/12/08 91% 77% 59% 45% 14% % of par @ 30/06/09 87% 78% 47% 39% 14% % of par @ 31/12/09 89% 75% 59% 42% 14% % of par @ 30/
Slide 29: Focus on US Subprime RMBS by vintage
4 Focus on US Subprime RMBS by vintage Euro million 2004 & As of June 30, 2008 value 2007 value 2006 value 2005 value value Total value 2010 Prior AAA 0 - 3 91% 8 90% 19 90% 22 79% 53 85% AA 0 - 1 86% 0 0% 84 87% 23 70% 108 83% A 0 - 1 95% 12 69% 62 82% 16 25% 91 57% BBB 0 - 10 57% 23 64% 54 57% 5 2
Slide 30: Focus on other asset-backed securities
4 Focus on other asset-backed securities Euro million CDO CLO Consumer ABS As of June 30, 2010 Consumer ABS is comprised of the following: % of par @31/12/2008 42% 75% 90% Leases 20% % of par @30/06/2009 47% 68% 85% Other Consumer 33% % of par @31/12/2009 62% 70% 92% Operating 16% % of par @30/06/
Slide 31: Focus on CDO
4 Focus on CDO Euro million Investment High Structured Other Total As of June 30, 2010 grade Yield Finance CDOs AAA 804 0 0 4 809 AA 17 13 20 8 59 A 0 0 18 7 24 BBB 11 15 7 10 43 Below invst. grade 307 30 15 12 365 Equity / Non rated 57 49 5 62 172 Value 1,196 107 65 103 1,471 Shareholder Exposure 3
Slide 32: Update on equity hedges
5 Update on equity hedges Euro 8 billion net equity exposure Estimated shareholders’ exposure as of June 30, 2010 In Euro billion FY09 1H10 (excluding Australia/NZ assets that (excluding Australia/NZ and UK Life assets are accounted as held for sale) that are accounted as held for sale) Local hedgin
Slide 33: Real Estate investments
6 Real Estate investments Defensive portfolio with good performance over the long term Key indicators Market value 1H10 market value by Split by type (in Euro billion) country France Switz. Belgium Germany France Office ~55% ~45% ~75% ~70% 20* 39% Residential ~10% ~50% ~0% ~5% Other 4% Commercial ~2
Slide 34: Hedge Fund investments
7 Hedge Fund investments Back to stable performance Key indicators Market value Exposure and concentration risk (in Euro billion) • Mostly management of funds of hedge funds 5 • Highest single exposure of Euro ~200 million (within Group guidance of 5% max for single exposure) • Top 10 fund managers
Slide 35: Private Equity investments
8 Private Equity investments Diversified portfolio built over the long run Market value Breakdown by geography Breakdown by expertise (in Euro billion) Venture Infras- Europe tructure ~6% 52% ~11% Buyout Elected “Private 6 Others 6% Equity firm of the Mezzanine Asia 6% ~19% ~64% year 2009” by the FT
Slide 36: Mortgage loans & other
9 Mortgage loans & other Low risk mortgage loan portfolio Key indicators FY09 market value by country Very secured Market value portfolio: (in Euro billion) Germany 98% Residential 17* Other 33% 1H10 default rate 9% Commercial 0.05% 2% Switzerland 1H10 loan to value 94% Residential 33% 24% 71% Comme
Slide 37: Details on solvency and debt
Details on solvency and debt redefining / standards aA |
Slide 38: Details on solvency and debt
Details on solvency and debt 1 Solvency I page 39 2 Net financial debt page 40 38 – AXA HY10 Earnings – August 4, 2010
Slide 39: Solvency I reconciliation to shareholders' equity & sensitivities
Solvency I reconciliation to shareholders’ 1 equity & sensitivities Available financial resources(1) Solvency I In Euro billion In Euro billion SH equity 100% 53 46 Surplus 22 Intangibles(2) - 31 Admitted sub debt(3) +4 Locally admitted assets +4 Requirement 24 Dividend to be paid 0 Real estate(4) +
Slide 40: Net financial debt and long-term maturities
2 Net financial debt Long-term maturities Total net debt Contractual maturity breakdown In Euro billion In Euro billion Undrawn credit lines Euro 9.4 billion 8,2 TSS TSDI Sub Debt 6,3 Senior 0,0 0,0 0 0,0 0,0 0 2,7 2,8 2,6 16.1 1,9 1,2 0,0 0,0 0,0 0 0 2,8 2,4 0,6 0,9 0 0,2 0,3 13.5 0,2 0,0 0,2 0,1 0
Slide 41: NBV
redefining / standards aA |
Slide 42: Focus on NBV
Focus on NBV NBV Volume Market FX & NBV (APE) Mix Expenses conditions other Total (Euro million Group share) 1H09 1H10 US 6 -13% +1,072% -70% +73% -17% +900% 62 France 67 -12% +23% -11% +0% -0% -0% 66 NORCEE 118 +9% +2% +0% -4% +4% +12% 133 UK 49 +6% +7% -1% +0% +1% +13% 56 Asia Pacific (incl. Japan