Axa Sa · EURONEXT:CS
Axa Sa — Axa Sa Ord — FY 2022 Earnings Presentation
31 slides from Axa Sa's earnings presentation, Feb 23, 2023
Slide 1: Full Year 2022 Earnings presentation
Full Year 2022 Earnings presentation February 23, 2023 GIE_AXA_Confidential
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 stateme nts contained he re in may be f orward-look ing state me nts including, b ut not l imited to, state ments that are predictions of or indicate future
Slide 3: Table of contents
Table of contents 1. FY22 Highlights A.04 Thomas Buberl, Group CEO 2. FY22 Business Performance A.09 Frédéric de Courtois, Group Deputy CEO 3. FY22 Financial Performance A.14 Alban de Mailly Nesle, Group CFO A3 Full Year 2022 Earnings GIE_AXA_Confidential
Slide 4: FY22 Highlights
1 FY22 Highlights Thomas Buberl, Group CEO GIE_AXA_Confidential
Slide 5: The Group is in strong shape
Full Year 2022 | The Group is in strong shape €7.3bn +12% 14.5% Group UE Group UEPS ROE +4% vs. FY21 vs. FY21 FY22 NEW 215%1 €5.5bn Euro 1.1 billion Solvency II ratio Cash remittance share buyback -1pt vs. FY21 in 2022 in 20232 Change at constant FX for underlying earnings and on reported basis for
Slide 6: Simple and focused business model
Simple and focused business model Global leader in Leading positions Commercial Lines insurance in Western Europe and Japan Strong position in large commercial Strong domestic market positions #1 Global P&C Commercial lines1 Across Western Europe, Japan and leading Alternative Asset manager Leading
Slide 7: Strength of business model tested in a difficult environment; Confident outlook
Strength of business model tested in a difficult environment; Confident outlook In Euro billion Gross revenues Underlying earnings per share +2% +12% 100 102 3.08€ 2.75€ +6% vs 2021 from business prioritized for growth incl. P&C Insurance, Health & Protection, 87 L&S Capital Light, Asset Management
Slide 8: Driving value for shareholders
Driving value for shareholders Dividend per share Share buy-back in EUR in EUR billion 1.701 1.5 1.54 SBB to offset 0.5 70% dilution [55%] Discretionary 1.12 Total 1.0 SBB Payout ratio3 2021 2022 2022 2023 6% 2% Dividend Yield + Share buy-back Yield 1 Dividend per share of €1.70 that will be propose
Slide 9: FY22 Business Performance
2 FY22 Business Performance Frédéric de Courtois, Group Deputy CEO GIE_AXA_Confidential
Slide 10: Cash remains the priority, remittance on an upward trajectory
Cash remains the priority, remittance on an upward trajectory In Euro billion Cash remittance from subsidiaries Inforce Organic Organic Cash On an upward trajectory, reflecting earnings growth remittance and room to further improve remittance ratio 5.5 0.3 4.4 Internal Progress on cash fungibility i
Slide 11: Right measures in place to manage the impact of inflation
Right measures in place to manage the impact of inflation Pricing trends AXA XL Insurance 1 Commercial lines excl. AXA XL 3 France & Europe Personal lines 3 (33% of P&C GWP 2) (32% of P&C GWP 2) (29% of P&C GWP 2) +9% +9% +7% +8% +5% +4% +3% +1% +2% HY22 FY22 Jan.23 HY22 FY22 4Q 22 HY22 FY22 4Q22 (
Slide 12: Stable Nat Cat load in a challenging reinsurance marketplace
Stable Nat Cat load in a challenging reinsurance marketplace In Euro billion Average Group Nat Cat charges expected to remain broadly stable Pre-tax and net of reinsurance ▪ Further reducing AXA XL Re 1.9 2.0 Increased Cat charges by an expected retention in to be mostly offset by ca. 35% Primary In
Slide 13: Robust asset portfolio; high-quality allocation within each asset class
Robust asset portfolio; high-quality allocation within each asset class Government & corporate bond (€282bn) ▪ High grade ▪ AA average sovereign bond rating ▪ Below 2% BBB- in corporate bond exposure ▪ A average corporate bond rating €340bn Fixed Income 73% Com. Real Estate debt Residential debt CLO
Slide 14: FY22 Financial Performance
3 FY22 Financial Performance Alban de Mailly Nesle, Group CFO GIE_AXA_Confidential
Slide 15: P&C Revenues | Continued favorable pricing in Commercial lines
P&C Revenues | Continued favorable pricing in Commercial lines; pricing in Personal lines sufficient to offset loss trend In Euro billion Gross revenues Commercial lines pricing1: +5% +2% +7% +7% +5% 51.6 +3% 49.3 AXA XL AXA XL Re2 France Europe Insurance2 Commercial +5% 31.3 Insurance Personal line
Slide 16: P&C Profitability | Managing the impact of inflation in Personal lines
P&C Profitability | Successfully managing the impact of inflation in Personal lines in 2022 Personal Motor Personal Non-Motor current year loss ratio (excl. Nat Cat) current year loss ratio (excl. Nat Cat) 75.0% +1.9pts 56.3% 73.9% +1.1pts 55.6% €0.5bn Covid +1.6pts 4.8% -1.5pts -0.2pt frequency gai
Slide 17: P&C Profitability | Solid results despite a difficult backdrop
P&C Profitability | Solid results despite a difficult backdrop In Euro million for Underlying Earnings Combined ratio Underlying Earnings +0.1pt +5% 94.6% 94.6% +83 4,430 5.7% 4.9% +350 Nat Cat 4,059 Attritional Incl. 0.8pt from -61 65.4% 66.5% the impact of (incl. large losses) the Ukraine war Expe
Slide 18: L&S Revenues | High quality net flows, no change in lapse experience
L&S Revenues | High quality net flows, no change in lapse experience In Euro billion Gross revenues Net flows -5% 33.3 31.5 Incl. €-2.4bn of Protection +1.6 outflows from ▶ Growth in Protection, mainly driven by Belgium inforce increased sales of Protection with Unit- Protection +3% 15.7 linked prod
Slide 19: L&S profitability | Growth driven by technical margin
L&S profitability | Growth driven by technical margin In Euro million Underlying earnings +11% 318 61 33 2,632 ▶ Higher technical margin mainly from a non- 2,326 -76 -29 repeat of the strengthening of actuarial assumptions in France and continued growth of Protection business in Japan ▶ Resilient in
Slide 20: Health | Earnings impacted by unfavorable one-off claims experience
Health | Earnings impacted by unfavorable one-off claims experience in Japan and France Revenues in Euro billion Underlying earnings in Euro million Gross revenues Combined ratio Underlying earnings or +7% excl. two large international Group contracts in France cancelled end of 2022 +16% +1.3pts -11
Slide 21: Asset Management | Robust net inflows and resilient earnings
Asset Management | Robust net inflows and resilient earnings Assets under management and Gross revenues in Euro billion Underlying earnings in Euro million Assets under management Underlying earnings -7% -2% 910 +18 +20 845 402 400 JVs -103 109 AXA IM Alts Alts +15 Incl. 198 Core -2 Prime (Alts) +17
Slide 22: Earnings and net income
Earnings and net income | Strong organic underlying earnings, net income impacted by unfavorable market conditions FY21 FY22 Change Underlying earnings per share In Euro Property & Casualty 4,059 4,430 +5% Life & Savings 2,326 2,632 +11% +12% Health 684 614 -11% 3.08 +4% Asset Management 402 400 -2%
Slide 23: Cash at Holding | Strong cash position including share buy-backs
Cash at Holding | Strong cash position including the effect of share buy-backs In Euro billion FY21 Cash position 4.5 4.5 4.5 Net cash remittance from subsidiaries +5.5 o/w ordinary cash remittance from subsidiaries +5.2 o/w from inforce management +0.3 Dividend (paid in May 2022) -3.5 ▪ €0.5bn to o
Slide 24: Solvency II | Strong operating capital generation, limited market impact
Solvency II | Strong operating capital generation, limited market impact In Euro billion Completed share buy-back in 2022: €1.5bn ▪ €0.5bn related to disposals Key sensitivities 6.7 ▪ €1.0bn of discretionary buy-back Provision for share buy-back for 2023: €1.1bn -0.7 62.0 0.7 -2.6 Ratio as of Decemb
Slide 25: Conclusion
Conclusion Thomas Buberl, Group CEO GIE_AXA_Confidential
Slide 26: Well on track to deliver Driving Progress 2023 key targets
Conclusion | Well on track to deliver Driving Progress 2023 key targets Underlying earnings per share Return on Equity In Euro +10% CAGR Driving Progress Driving Progress 14.7% 14.5% 3.08 2023 2023 2.56 2.75 3% - 7% UEPS CAGR 2020-2023E 13% - 15% 2021-2023E Set to exceed the targeted 2020 2021 2022
Slide 27: Q&A
Q&A Full Year 2022 Earnings February 23, 2023 GIE_AXA_Confidential
Slide 28: AXA Investor Relations | Keep in touch
AXA Investor Relations | Keep in touch Meet our management Contact us Investor Relations March 15 Morgan Stanley European Financials Conference London +33 1 40 75 48 42 anu.venkataraman@axa.com March 27 HSBC West Coast Financials Conference San Francisco Head of Investor Relations remi.dousteyssier@
Slide 29: Thank you
Thank you Full Year 2022 Earnings February 23, 2023 GIE_AXA_Confidential
Slide 30: Scope
Scope ▪ France: includes insurance activities, banking activities and holdings in France. ▪ Europe: includes Switze rland (insurance activities), Ge rmany (insurance activitie s and holdings), Belgium (insurance activ ities and holdings), United Kingdom and Ireland (insurance activities and holdings
Slide 31: Glossary
Glossary ▪ ADC – Adverse Development Cover. ▪ Annual premium equivalent (New business APE) represents 100% of new regular premiums plus 10% of single premiums, in line with EEV methodology. APE is Group share. ▪ Annual premium equivalent (A PE), NBV, NBV mar gin and PVEP margin are non-GAAP financia