Slide 1: Update on IFRS 17/9
Update on IFRS 17/9 May 15, 2023 GIE_AXA_Confidential
Slide 2: Important legal information and cautionary statements
MPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES Certain state me nts c ontained herein may be forward-look ing state ments includ ing, but not l imited to, state me nts that are p redictions of or indicate f uture
Slide 3: AXA reaffirms Group's key IFRS 17/9 messages
AXA reaffirms Group’s key IFRS 17/9 messages Group underlying earnings in Euro billion above 7.5 7.3 Group underlying earnings’ power unaffected targeting above €7.5bn for 2023, including ca €-0.1bn of FX headwind 6.15 Cash and capital unaffected by accounting changes Solvency II at 215% 1 and €5.5b
Slide 4: Confident outlook for 2023
Confident outlook for 2023 UEPS CAGR set to exceed +7% maintained under IFRS 17/9 (2020 rebased-2023) In Euro billion 2022 2023 targets IFRS 4 IFRS 17/91 Key IFRS 17/9 drivers2 At least Property & Casualty 4.4 4.7 ▪ Improved technical result ▪ Lower financial result with higher unwind ▪ Predictable
Slide 5: FY22 P&C underlying earnings | Transition to IFRS 17/9
FY22 P&C underlying earnings | Transition to IFRS 17/9 FY22 Combined ratio Normalised IFRS 17/9 combined IFRS 17/9 financial result will published ratio lower than under IFRS 4 reflect unwind of discount in Euro billion / pre-tax 97.6% 94.6% 93.7% 2.9 0.1 94.6% 1.7% -0.5 2.5 4.0% 4.0% 4.9% 5.0% Illu
Slide 6: 2023 P&C underlying earnings target
2023 P&C underlying earnings target | Expecting strong growth from higher technical results In Euro billion at least 4.7 4.4 Improved technical result ▪ improving pricing environment ▪ Nat Cat load of ca. 4pts ▪ PYD release within range of 0.5pt to 2pts ▪ lower large losses from the non-repeat of th
Slide 7: FY22 Life underlying earnings | Transition to IFRS17/9
FY22 Life underlying earnings | Transition to IFRS17/9 Underlying Earnings building blocks in Euro billion IFRS 4 UE: €2.6bn Long-term technical result Technical results -0.5 2.9 0.9 ▪ long-term result mostly driven by predictable CSM release, limited experience variance 2.5 -0.1 0.2 Non-VFA financi
Slide 8: FY22 Life CSM | CSM release expected to be sustainable
FY22 Life CSM | CSM release expected to be sustainable In Euro billion Recurring items New Business CSM reported on risk-neutral basis 0.6 -2.5 25.5 Underlying return on inforce 1.9 0.2 24.6 reflects unwind of discount and expected excess investment 1.3 return over risk-neutral assumptions -0.6 CSM
Slide 9: FY22 Health underlying earnings | Transition to IFRS 17/9
FY22 Health underlying earnings | Transition to IFRS 17/9 Underlying Earnings building blocks in Euro billion IFRS 4 UE: €0.6bn Technical results Long-term technical result ▪ mostly driven by a predictable CSM release 0.2 -0.2 ▪ impacted by Covid claims in Japan and two large 0.6 international Group
Slide 10: FY22 Health CSM | CSM impacted by sharp increase in interest rates
FY22 Health CSM | CSM impacted by sharp increase in interest rates In Euro billion Recurring items 0.2 New Business CSM 8.8 -0.6 0.4 mostly driven by new business in Japan -1.0 0.1 -0.3 7.8 CSM release ▪ reported release ratio of 7% within the expected release ratio of 6% to 8% p.a. ▪ future CSM rel
Slide 11: 2023 Life & Health underlying earnings target
2023 Life & Health underlying earnings target | Earnings expected to remain resilient Underlying earnings in Euro billion ~3.3 CSM 3.2 predictable CSM release Technical result ▪ non-repeat of elevated Health claims in Japan & France ▪ non-repeat of a positive model change in Japan in Life Lower non-
Slide 12: Net Income | FY22 reflects change in accounting treatment of listed equities
Net Income | FY22 reflects change in accounting treatment of listed equities In Euro billion 6.7 -1.2 Underlying Earnings notably from lower PYD and changes in discounting -0.7 5.1 0.3 Realized capital gains ▪ equity gains go directly in retained earning within shareholders’ equity under IFRS 17/9 ▪
Slide 13: Shareholders' equity | less volatile under IFRS 17/9
Shareholders’ equity | less volatile under IFRS 17/9 In Euro billion IFRS 17/9 IFRS 4 Shareholders' equity 51.9 71.1 45.4 46.3 Change in OCI related to net invested assets and liabilities -5.4 -27.1 Realized gains on equities 0.6 - Net income for the period 5.1 6.7 Dividend (paid in 2022) -3.5 -3.5
Slide 14: Concluding remarks
Concluding remarks Confident in our 2023 underlying earnings target Shareholders’ Equity (excl. OCI) broadly stable vs IFRS 4 No change to cash remittance and Solvency II ratio ‘Driving Progress 2023’ key financial targets 1 reaffirmed including UEPS CAGR set to exceed +7%2 and cumulative cash remit
Slide 15: Appendix
Appendix GIE_AXA_Confidential
Slide 16: P&C | FY22 underlying earnings under IFRS 17/9 not representative
P&C | FY22 underlying earnings under IFRS 17/9 not representative due to non-recognition of release of reserves in excess of best estimate In Euro billion FY22 IFRS 4 reserves in excess FY22 P&C underlying earnings of undiscounted SII BEL IFRS 4 to IFRS 17/9 roll-forward gross of tax net of tax 3.4
Slide 17: Indicative 2022 IFRS 17/9 sensitivities
Indicative 2022 IFRS 17/9 sensitivities In Euro billion Life & Total Group Health CSM stock Net OCI Baseline 33.3 -8.5 Interest rates +50bps 0.1 -0.4 Interest rates -50bps -0.3 0.4 Corporate spread +50bps -0.9 -0.8 Corporate spread -50bps 0.8 0.8 Listed equities +25% 0.6 1.2 Listed equities -25% -0.
Slide 18: FY22 Underlying Earnings by geography
FY22 Underlying Earnings by geography In Euro billion IFRS 4 IFRS 17/9 Delta Mainly from the removal of release of excess reserves, not France 1.8 1.3 -0.6 recognized under IFRS 17/9, as well as the impact of non-recognition of the change in discount rates in P&C annuities, partly offset by higher L
Slide 19: FY22 Shareholders' equity | Reconciliation to FY22 Solvency II EOF
FY22 Shareholders’ equity | Reconciliation to FY22 Solvency II EOF In Euro billion Mainly from Real Estate Foreseeable dividends to be paid in 2023: €3.9bn 8.0 Provision for share buy-back announced in Feb 2023: €1.1bn 75.6 26.3 11.4 58.5 -22.1 -2.7 -6.0 -0.7 -5.0 o /w Goodwill €-17.8bn Addition of
Slide 20: Q&A session
Q&A session GIE_AXA_Confidential
Slide 21: Scope
Scope ▪ France: includes insurance activities, banking activities and holding in France. ▪ Europe: includes Switzerland (insurance activitie s), Germany (insurance activities and holding), Belgium (insurance activ ities and holding), L uxe mbourg (insurance activities and holding), United Kingdom an
Slide 22: Glossary (1/2)
Glossary (1/2) ▪ Building Block Approach (BBA): also referred to as ‘General Measurement Model’, compulsory measurement model for long-term non-participating business. ▪ Capital-light products: encompass all products with no guarantees, with guarantees at maturity only or with guarantees equal to or
Slide 23: Glossary (2/2)
Glossary (2/2) ▪ Present value of expected premiums (PVEP): PVEP rep rese nts the ne w business volume , e qual to the present val ue at time of issue of the total pre miums e xpected to be received ove r the policy term. The present value is discounted at the reference interest rate and PVEP is Gro
Slide 24: Thank you
Thank you GIE_AXA_Confidential