Slide 1: Half Year 2019 Appendices
Half Year 2019 Appendices August 1, 2019
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. GROUP OVERVIEW B.4 2. GEOGRAPHIES B.10 3. PROFITABILITY ANALYSIS B.26 4. BALANCE SHEET B.36 5. CORPORATE RESPONSIBILITY B.56 B3 Half Year 2019 Earnings | Appendices | August 1, 2019
Slide 4: Group overview
B1 Group overview
Slide 5: Revenues and underlying earnings by division
Revenues and underlying earnings by division 1H19 figures Revenues by division Underlying earnings by division Transversal1 2% International 6% Transversal1 4% International 6% EQH 7% AXA France 23% EQH 7% AXA France 22% AXA in Asia 8% AXA XL 12% Euro 58 billion Euro 3.6 billion2 AXA in Europe 34% A
Slide 6: AXA's rankings
AXA’s rankings FY18 figures1 Current engines High potentials #2 France #1 Ireland #8 Brazil #28 Thailand #1 Switzerland #5 Italy #16 China #5 Philippines2 P&C #6 Germany #5 Spain P&C #1 Belgium #1 Hong Kong #3 Mexico #2 UK #1 XL (Lloyd’s) #7 XL (Reinsurance) #3 France #7 Italy #16 China #4 Thailand
Slide 7: Revenues and underlying earnings by line of business
Revenues and underlying earnings by line of business 1H19 figures Revenues by line of business Underlying earnings by line of business AM 2% Banking 0% AM 5% Banking 1% Health 9% Health 12% Euro 58 billion P&C 48% Euro 3.6 billion1 P&C 49% L&S 37% L&S 37% B7 Half Year 2019 Earnings | Appendices | Au
Slide 8: Life & Savings and Health | Distribution and product mix
Life & Savings and Health | Distribution and product mix 1H19 figures APE by channel APE by product Other 9% Funds & Other 6% Partnerships 21% Unit-Linked 18% Protection 37% Euro 3.2 billion Agents & salaried Euro 3.2 billion sales force 48% Brokers – IFAs & others 22% G/A Savings 23% Health 16% B8
Slide 9: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix 1H19 revenues excluding Health Revenues by channel Revenues by product Other 15% Direct 6% Agents 26% Motor 29% Partnerships 3% Euro 28.0 billion Euro 28.0 billion Brokers – IFAs & others 50% Non-Motor 71% B9 Half Year 2019 Earnings | Appendices | A
Slide 10: Geographies
B2 Geographies
Slide 11: France | Topline overview
France | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +9% +6% stable 730 2,312 4.0 3.9 2,175 656 231 Commercial Protection 201 lines 1.8 stable 1.8 G/A Savings 266 325 Personal -1% lines 2.2 2.1 Unit-Linked Funds & Other 189 170
Slide 12: France | Profitability analysis
France | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +3.1 pts -1.0 pt -2.9 pts 94.7% 97.8% 98.7% 97.7% 93.7% 90.8% Loss ratio 70.1% 71.6% 80.7% Loss ratio 68.2% 63.9% Loss ratio 80.6% Expense ratio 24.5% 26.1% Expense ratio 25.5% 26.9% Expense ratio 18.0
Slide 13: Europe | Topline overview
Europe | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +1% +3% +2% 587 589 2,830 2,937 10.3 9.7 288 Commercial 4.0 +4% 4.3 Protection 315 lines G/A Savings 147 167 +1% Personal 5.7 6.0 Unit-Linked lines Funds & Other 107 116 17 1
Slide 14: Europe | Profitability analysis
Europe | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -2.4 pts -0.8 pt -1.1 pts 97.6% 95.2% 96.2% 95.4% 93.9% 92.8% Loss ratio 66.8% 65.7% Loss ratio 91.0% 82.8% Loss ratio 85.5% 84.3% Expense ratio Expense ratio Expense ratio 27.1% 27.1% 6.7% 12.4% 10.7%
Slide 15: Asia | Topline overview
Asia | Topline overview L&S APE Health revenues P&C revenues In Euro million (excl. Health) In Euro million In Euro billion +8% +3% +5% 750 1,063 0.7 974 0.6 660 Commercial +5% 0.1 lines 0.1 544 Protection 490 Personal 0.6 lines 0.6 +4% G/A Savings Unit-Linked 157 200 12 7 1H18 1H19 1H18 1H19 1H18 1
Slide 16: Asia | Profitability analysis
Asia | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.4 pt -0.3 pt -1.0 pt 86.0% 86.3% 77.7% 77.5% 96.5% 95.4% Loss ratio 54.0% 53.8% Loss ratio 70.3% 68.4% Loss ratio 69.3% 71.4% Expense ratio 23.7% 23.7% Expense ratio 26.2% 27.0% Expense ratio 16.7% 15
Slide 17: AXA XL | Topline overview
AXA XL | Topline overview P&C Specialty revenues P&C Insurance revenues P&C Reinsurance revenues In Euro million In Euro million In Euro million +6% +15% +2% 2,632 4,961 2,748 557 1,197 1H18 1H19 1H18 1H19 1H19 Changes are on comparable basis XL Group is reported as part of a new segment named AXA X
Slide 18: Group | Topline overview
Group | Topline overview L&S APE Health revenues P&C revenues1 In Euro million (excl. Health) In Euro million In Euro billion +5% +5% +6% 2,836 7,230 28.0 2,712 6,770 Protection 1,169 1,194 18.8 +6% 18.4 Commercial G/A Savings 610 lines 9.3 727 Unit-Linked 741 Personal 589 9.3 +1% 9.5 Funds and othe
Slide 19: Group | Profitability analysis
Group | Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -2.8 pts -0.7 pt +0.1 pt 96.2% 94.9% 93.9% 95.0% 95.1% 93.2% Loss ratio 68.1% 67.6% Loss ratio 81.4% 75.2% Loss ratio 78.0% 77.2% Expense ratio 26.9% 27.5% Expense ratio 14.8% 18.1% Expense ratio 16.9%
Slide 20: Group | Underlying earnings by geography and business line
Group | Underlying earnings by geography and details by business line Underlying earnings 1 o/w o/w o/w o/w Asset Total Life & Savings Property & Casualty Health Management (In Euro million) 1H19 Change 1H19 Change 1H19 Change 1H19 Change 1H19 Change France 873 +7% 405 -11% 409 +26% 60 +55% - - Euro
Slide 21: Group | Net flows
Group | Net flows 1H19 figures L&S: Euro -2.0 billion Health: Euro +1.7 billion P&C NNC: +228k contracts in Euro billion in Euro billion Personal lines net new contracts, in thousands of contracts +1.5 +1.2 +0.6 +132 +0.6 +121 +0.5 +0.2 -0.5 +11 0.0 -4.1 0.0 -35 France Europe Asia US International F
Slide 22: L&S and Health | APE, NBV and NBV margin by geography
L&S and Health | APE, NBV and NBV margin by geography 1H19 APE by product Total APE NBV NBV margin Mutual 1 G/A 1 Unit- 1 2 1 1 1 1 In Euro million Protection Change Change Change Health Change funds & Change 1H18 1H19 Change 1H18 1H19 Change 1H18 1H19 Change 1 Savings Linked other France 231 +11% 3
Slide 23: P&C | Revenues by business line
P&C | Revenues by business line 1H19 figures Personal Motor Personal Non-Motor Commercial Motor Commercial Non-Motor Change on Change on Change on Change on In Euro million Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis
Slide 24: P&C | Price effect by geography
P&C | Price effect by geography 1H19 figures Personal Lines Commercial Lines Price Revenues Price Revenues In Euro million Revenues effect growth Revenues effect growth 2019 Market pricing trends France 2,132 +0.7% -0.8% 1,789 +2.0% +0.4% Pricing expected to remain stable Price softening in Personal
Slide 25: Asset management | Asset under management rollforward
Asset management | Asset under management rollforward Assets under Management rollforward AXA IM - Fully AXA IM - Asian Joint In Euro billion AXA IM consolidated scope Ventures AUM as of December 31, 2018 730 632 98 Net flows -3 4 -6 Market appreciation 28 27 1 Scope & other 0 0 0 Forex impact 2 2 0
Slide 26: Profitability analysis
B3 Profitability analysis
Slide 27: Group underlying earnings margin analysis
Profitability analysis | Group underlying earnings margin analysis In Euro million 1H19 Change 1H19 Change 1H19 Change Investment margin 1,984 0% Fees & revenues 2,958 +7% Net technical margin 6,612 +6% + + + - Acquisition expenses 4,842 +5% - Administrative expenses 2,794 +7% - VBI amortization 32
Slide 28: Group underlying earnings margin analysis by division
Profitability analysis | Group underlying earnings margin analysis by division In Euro million Total France Europe Asia AXA XL International Transversal Central Holdings Margin on 2,443 852 450 1,023 - 119 0 - revenues Investment 2,487 837 882 22 503 199 44 - margin Management fees 452 270 101 53 -
Slide 29: A predominantly P&C, Health and Protection company
Underlying earnings by business | A predominantly P&C, Health and Protection company 14% 4% Savings3 Asset management 17% & other2 Protection in Euro million Pre-tax underlying earnings 1H19 Weight 10% Health 486 10% Health 1H191 P&C 2,589 55% Protection 821 17% Savings 641 14% Asset management & ot
Slide 30: L&S underlying earnings margin analysis
Profitability analysis | L&S underlying earnings margin analysis In Euro million 1H19 Change 1H19 Change 1H19 Change Investment margin 992 +1% Fees & revenues 2,144 +8% Net technical margin 614 -10% Average G/A reserves 282,118 -6% o/w Unit-Linked management fees 452 -3% 1 70 bps +5bps Average UL re
Slide 31: P&C underlying earnings margin analysis
Profitability analysis | P&C underlying earnings margin analysis In Euro million 1H19 Change 1H19 Change Investment income 935 -1% Technical margin 5,240 +8% Average assets1 66,563 +1% Gross earned premium 15,013 +3% Average yield1,2 2.8% -7 bps AY Loss ratio 65.1% -1.7pts CY Loss ratio 67.2% -1.9pt
Slide 32: Details on P&C current year loss ratio
Profitability analysis | Details on P&C current year loss ratio Personal Motor Personal Non-Motor 73.5% +0.8pt 73.4% 63.7% +1.3pts 60.3% 0.0pt -0.2pt -2.8pts -0.6pt -1.2pts -0.8pt 1H18 Nat Cat Price effect Freq & Sev Other 1H19 1H18 Nat Cat Price effect Freq & Sev Other 1H19 Total Commercial lines T
Slide 33: Focus on P&C reserves
Profitability analysis | Focus on P&C reserves Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 2.0% 1.7% 2.1% 1.8% 1.8% 1.9% 2.1% 2.1% 1.7% 1.4% 1.2% 1.2% 1.3% 1.4% 1.3% 0.6% 0.8% 1.2% FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13
Slide 34: Health underlying earnings margin analysis
Profitability analysis | Health underlying earnings margin analysis In Euro million 1H19 Change 1H19 Change 1H19 Change Investment income 65 +10% Fees & revenues 813 +4% Technical margin 763 +12% Gross earned premiums: 6,912 (+5%) AY Loss ratio: 77.2% (-0.5pt) + + + - Acquisition expenses 783 +4% Ac
Slide 35: On track with our cost savings target
Cost savings | On track with our cost savings target 2018 2019 Ambition 2020 2017 +3% 2020 69% contribution to 2016 completion rate 2015 – 2020E UEPS CAGR from cost savings Euro 1.4 billion FY16-1H19 Cost savings B35 Half Year 2019 Earnings | Appendices | August 1, 2019
Slide 36: Balance Sheet
B4 Balance Sheet
Slide 37: Balance sheet
Balance sheet 1. General Account invested assets B.38 I. Government and corporate bonds by rating B.39 II. Government Bonds and related B.40 III. Corporate Bonds B.41 IV. Asset Backed Securities B.42 V. Listed Equity B.43 VI. Real Estate B.44 VII. Hedge Funds B.45 VIII. Private Equity B.46 IX. Mortg
Slide 38: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY18 % 1H19 % In Euro billion Changes in asset mix Fixed income 498 81% 448 82% o/w Govies and related 236 38% 235 43% Swiss Group Life transformation: o/w Corporate bonds 209 34% 170 31% Assets decreased by Euro 24 billon, essentially investmen
Slide 39: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds 1 Below investment Below investment 12% grade (1%) Non rated (2%) grade (6%) 15% AAA BBB 20% AAA Euro 235 Euro 170 12% AA 23% billion 36% billion BBB A 42% AA 31% A Average rating maintained in the AA range Average
Slide 40: Government bonds and related
Government bonds and related Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Other 9% 46.2 Thailand 2% Netherlands 2% France 23% Austria 3% 32.7 US 4% Supranational Institutions 5% Euro 235 billion Spain 6% Japan 15% Switzerland 6% Italy 9% FY18 1H19 Belgium 8% Germ
Slide 41: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Technology 2% Other 3% Basic materials 3% Consumer 9.0 Cyclical 5% Energy 5% Banks 39% Financials 6% Euro 170 billion Communications 2.6 7% Industrials 8% FY18 1H19 Consumer Utilities 8% non-cyclical 14%
Slide 42: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment grade 2% Non rated/Equity 8% BBB 1% CLO 91% US Subprime, A 15% Alt-A & NC RMBS 2% Prime RMBS 2% Commercial MBS 2% Euro 12 billion Euro 12 billion CDO 0.9% Consumer ABS2 2% AA 21% Other ABS 1% AAA 54% 1. Including d
Slide 43: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by geography Gross1 unrealized capital gains and losses In Euro billion Rest of the World 20% 4.2 France 23% Other 2.2 European countries 9% Euro 20 billion Belgium 4% US 22% Netherlands 4% Germany 5% FY18 1H19 Switzerland 5%Japan 7% As of June 30, 2019 B43
Slide 44: Real estate investments
Real estate investments Defensive portfolio with good performance over the long term Breakdown by geography Breakdown by type and geography Japan 3% Other 1% US 3% France UK 5% 33% Switzerland France Belgium Germany Other Total Belgium 9% Office 8% 12% 6% 5% 11% 43% Residential 8% 3% 0% 1% 4% 15% Re
Slide 45: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 12 managers Relative value credit 5% Multi-Strategy Deep value credit 9% program 32% Real asset cash flow 10% Market value Alternative Credit Short dated carry 76% Euro 6 billion program 68% Multi-Str
Slide 46: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Other 8% Venture 4% Japan 3% Mezzanine 12% Infrastructure 24% Buy-out 60% US 26% Market value Euro 10 billion Diversified portfolio Europe 63% Direct 46% Funds of funds 54% As of June 30, 2019 B46 Half Ye
Slide 47: Mortgage loans
Mortgage loans Low risk mortgage loan portfolio 1H19 market value by entity1 43% 27% Switzerland Germany Belgium 6% 45% Residential Other 8% Switzerland 43% 86% Residential 55% Commercial 14% Commercial France 15% Market value2 15% 6% Euro 25 billion France Belgium Residential Residential 32% 54% Co
Slide 48: Focus on net unrealized capital gains
Focus on net unrealized capital gains Balance sheet net unrealized capital gains Off balance sheet net unrealized capital gains In Euro billion In Euro billion 17.8 2.6 6.1 11.3 2.4 Equities & other 1 4.9 0.3 1.1 Corporate bonds 12.8 Government bonds 10.0 and related FY18 1H19 FY18 1H19 4.0 3.4 Net
Slide 49: Asset & Liability management (1/2)
Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 P&C yield2 -16bps Average Yield on Spread above 1H191 guaranteed 3.3% 3.1% assets guarantee 69 bps 67 bps 3.0% rates Inforce 2.8% 1.6% +120 bps New business 2.0% 0.2% +180 bps 1H18 1H19 1H18 1H19 1H19 • Significa
Slide 50: Asset & Liability Management (2/2)
Asset & Liability Management (2/2) Life & Savings General Account investment spreads above guarantees for main entities France Germany Switzerland Belgium AXA MPS 290 bps 120 bps 50 bps 30 bps 130 bps Inforce 3.5% 3.1% 3.8% 2.6% 1.6% 1.3% 2.7% 2.2% 0.6% 0.9% business 150 bps 100 bps 170 bps New 40 b
Slide 51: Gross financial debt – Long-term maturities
Gross financial debt – Long-term maturities Gross financial debt Contractual maturity breakdown In Euro billion In Euro billion 0.8 0.3 Debt 4.0 32.1% 30.8% gearing 0.1 7.2 0.4 0.5 4.0 24.2 0.4 2.4 20.0 2019 2020 2021-2025 2026-2040 > 2040 Undated 7.9 7.9 Economic maturity breakdown 11.3 In Euro bil
Slide 52: Adjusted ROE
Adjusted ROE In Euro million (unless otherwise noted) 1H18 1H19 Adjusted earnings 3,628 4,006 Interest charges on undated debt1 -115 -136 Average adjusted shareholders’ equity 45,142 42,198 Adjusted ROE (%) 15.6% 18.3% 1. Including adjustment to reflect net financial charges related to undated subor
Slide 53: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion 190% Ratio as of June 30, 2019 193% 190% 198% +8 pts 58.2 57.9 Interest rate +50bps Interest rate -50bps 177% -13 pts 30.2 30.5 187% -3 pts Available capital Corporate spreads +50bps Required capital Equity markets +25% 193% +3 p
Slide 54: Solvency II required capital
Solvency II required capital Split by Risk, Geography & Business Required capital by risk Required capital by business Required capital by geography 1H19 FY18 FY18 UK Transversal & Operational Asset Management & Banking Belgium Central Holdings Counterparty 4% US 3% 6% Holdings & Other 4% Asset Mana
Slide 55: Ambition 2020 – well on track
Ambition 2020 – well on track Underlying earnings per share Free cash flows In Euro In Euro billion Ambition Ambition +10% +5% CAGR 2020 6.6 2020 2.48 1.46 6.2 6.3 2.16 1.33 3% - 7% 28 - 32 Euro billion UEPS CAGR cumulative FCF 2015-2020 FY15 FY18 1H18 1H19 FY16 FY17 FY18 2016-2020 Adjusted return o
Slide 56: Corporate Responsibility
B5 Corporate Responsibility
Slide 57: SRI analysts recognize AXA as a leader
Corporate Responsibility – SRI analysts recognize AXA as a leader AXA is the 1st insurer by number of SRI funds in its capital (1) 2018: Sector Leader “A+” 2018 UN PRI Scorecard (focus Score: A- 1st / 49 insurance companies on Responsible Investment) Level Score: « Leadership » Included in Euronext
Slide 58: Responsible insurer striving for a stronger and safer society
Responsible insurer striving for a stronger and safer society Climate change and Health and Social inequalities & the environment disease prevention inclusion ▶ Be the first to apply both investment and ▶ Contribute to the French-led “Collectif des 33” underwriting restrictions to coal and oil ▶ Pur