Slide 1: AXA Half Year 2016 Earnings Presentation
AXA HALF YEAR 2016 EARNINGS Presentation August 3, 2016
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 Thomas Buberl, incoming CEO 1H16 FINANCIAL PERFORMANCE PAGE A13 Gérald Harlin, Group CFO CONCLUDING REMARKS PAGE A38 Thomas Buberl, incoming CEO A3 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 4: Introduction & highlights
Introduction & highlights Thomas Buberl, incoming CEO
Slide 5: 1H16 Results
1H16 RESULTS Resilient earnings Strong balance sheet Profitable business growth Clear growth drivers despite adverse market conditions A5 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 6: Resilient underlying earnings
RESILIENT UNDERLYING EARNINGS Underlying earnings Life & Savings In Euro billion In Euro billion +4% 1.8 1.9 0% 3.1 3.1 1H15 1H16 restated Property & Casualty In Euro billion -6% 1.3 1.2 Natural catastrophes were higher in 1H16 than 1H15 by Euro 0.1bn 1H15 1H16 restated 1H15 1H16 restated Changes ar
Slide 7: Resilient earnings
RESILIENT EARNINGS Adjusted earnings Net income In Euro billion In Euro billion -2% +4% 3.5 3.4 3.2 3.1 1H15 1H16 1H15 1H16 restated restated Changes are at constant Forex and excluding Genworth and Portugal A7 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 8: Strong and resilient balance sheet
STRONG AND RESILIENT BALANCE SHEET Strong Solvency II ratio1 Resilience to market movements 230% 200% 197% Target Ratio as of June 30, 2016 197% range Interest rate +50bps 202% 170% Interest rate -50bps 192% Corporate spreads +75bps 196% Equity markets +25% 200% Equity markets -25% 188% 1Q16 1H16 Hi
Slide 9: Focused on profitable growth
FOCUSED ON PROFITABLE GROWTH High new business profitability Life & Savings 37.3% Euro 3.3 bn NBV margin Annual Premium Equivalent Profitable business and growing revenues Property & Casualty 96.0% +3.7% All year combined ratio Gross revenues Strong net inflows Asset Management Euro 19 bn Euro 9 bn
Slide 10: Health: high quality franchise
HEALTH: HIGH QUALITY FRANCHISE Strong footprint Growth and high profitability* *Includes Health reported in both Life & Savings and Property & Casualty In Euro billion Other1 14% +3% Hong Kong 27% France 3% 6,112 6,240 Mexico 4% Euro 6.2 Gross billion revenues Japan 11% gross revenues 23% Germany UK
Slide 11: Resilience to adverse market conditions
RESILIENCE TO ADVERSE MARKET CONDITIONS 74bps 1H16 L&S INVESTMENT MARGIN … in line with 3.5% 1H16 P&C INVESTMENT YIELD1 IR Day guidance 2.0% 1H16 REINVESTMENT YIELD1 A11 | Half Year 2016 Earnings | Presentation | August 3, 2016 All notes are on pages A43 and A44
Slide 12: Ambition 2020: clear actions to grow earnings
AMBITION 2020: CLEAR ACTIONS TO GROW EARNINGS Building blocks of underlying earnings per share CAGR 2015 – 2020E1 Management control – 8% UEPS CAGR Interest 1% 3% - 7% rates 2% headwinds 2% + = 3% -5% ; -1% Efficiency Growth Technical M&A 2015 – margin 2020E UEPS CAGR A12 | Half Year 2016 Earnings |
Slide 13: 1H16 Financial performance
1H16 Financial performance Gérald Harlin, Group CFO
Slide 14: 1H16 Financial performance
1H16 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A14 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 15: Underlying earnings
UNDERLYING EARNINGS UNDERLYING EARNINGS UNDERLYING EARNINGS BY SEGMENT In Euro million 1H15 In Euro million 1H16 Change 0% restated 3,075 3,063 Life & Savings 1,835 1,915 +4% Property & Casualty 1,286 1,176 -6% Asset Management 222 213 -3% International Insurance 126 86 -32% Banking 56 60 +7% Holdin
Slide 16: Adjusted earnings
ADJUSTED EARNINGS ADJUSTED EARNINGS DETAILS OF ADJUSTED EARNINGS In Euro million 1H15 In Euro million 1H16 -2% restated 3,457 3,364 Underlying earnings 3,075 3,063 Net realized capital gains/losses 382 301 o/w realized capital gains 471 479 o/w net impairments -86 -194 o/w hedging of equity portfoli
Slide 17: Net income
NET INCOME NET INCOME DETAILS OF NET INCOME In Euro million 1H15 +4% In Euro million restated 1H16 3,207 Adjusted earnings 3,457 3,364 3,077 Change in fair value & Forex -250 -647 o/w gains (losses) on interest rate economic hedges not -411 -357 eligible for hedge accounting under IAS 39 o/w gains (
Slide 18: 1H16 Financial performance
1H16 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A18 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 19: L&S – new business sales and margins by market
L&S – NEW BUSINESS SALES AND MARGINS BY MARKET In Euro million High growth Mature markets Total markets Total -2% 3,362 3,274 -5% New business 2,682 2,575 +11% sales (APE) + 680 699 = 1H15 restated 1H16 1H15 restated 1H16 1H15 restated 1H16 -11 pts 0 pt 48% +2 pts 37% 37% 39% 35% 37% New business ma
Slide 20: L&S – new business sales and margins by business
L&S – NEW BUSINESS SALES AND MARGINS BY BUSINESS APE NBV Net Flows (Euro million) margin (Euro billion) 1H15 Business line 1H16 change 1H16 1H16 restated G/A Protection & Health 1,326 +6% 54% +5.0 +3.8 G/A Savings 745 +22% 16% -2.22 -0.4 of which G/A capital light1 422 +16% 26% -0.8 +2.3 Unit-Linked
Slide 21: L&S – underlying earnings by business
L&S – UNDERLYING EARNINGS BY BUSINESS G/A PROTECTION G/A SAVINGS UNIT-LINKED TOTAL & HEALTH (pre-tax) (pre-tax) LIFE LIFE & & SAVINGS SAVINGS1 (pre-tax) In Euro million In Euro million (post-tax) In Euro million In Euro million +4% +4% -4% 1,915 1,915 1,835 1,835 1,166 1,169 -11% -2% 732 647 425 415
Slide 22: 1H16 Financial performance
1H16 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A22 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 23: P&C – revenues by segment
P&C – REVENUES BY SEGMENT TOTAL PERSONAL LINES In Euro million In Euro million +4% +4% 10,231 10,326 18,183 18,602 • Average price effect of +4.2%* • Motor revenues up 4% • Non-motor revenues up 3% 1H15 1H16 COMMERCIAL LINES In Euro million +3% 7,876 8,194 • Average price effect of +2.4%* • Revenues
Slide 24: P&C – price effect by country and segment
P&C – PRICE EFFECT BY COUNTRY AND SEGMENT 1H16 Personal Lines Commercial Lines Price Revenues Price Revenues evolution growth evolution1 growth FY16 market pricing trends Increased pressure on prices from stronger France +0.7% +2.8% +1.7% -2.0% competition Increased competition on brokerage in Perso
Slide 25: P&C – revenues and margins by market
P&C – REVENUES AND MARGINS BY MARKET High growth Mature markets Direct Total markets In Euro million +4% +13% on an economic +2% 18,183 18,602 gross revenues basis1 14,082 14,407 Revenues + 2,712 +11% 2,743 + +6% = 1,389 1,451 1H15 1H16 1H15 1H16 1H15 1H16 1H15 1H16 +1.3 pts 102.3% 99.9% 98.8% 98.5%
Slide 26: 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 - Higher natural catastrophe charges - Higher claims severity + Price increases and lower frequency -6% 1,286 98.2% 96.9% 96.0% 0.1%
Slide 27: 1H16 Financial performance
1H16 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A27 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 28: 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) -5% -7% +28 626 589 632 583 +17 1H15 1H16 1H15 1H16 1H15 1H16 Euro 16 billion from Joint Ventures in As
Slide 29: AM – underlying earnings
AM – UNDERLYING EARNINGS ASSET MANAGEMENT In Euro million In Euro million +3% 115 116 -3% 222 213 1H15 1H16 In Euro million -9% 108 98 1H15 1H16 1H15 1H16 Full detail in appendix on pages B40 to B41 Changes are at constant Forex A29 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 30: 1H16 Financial performance
1H16 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A30 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 31: Asset & liability management (1/4)
ASSET & LIABILITY MANAGEMENT (1/4) Diversified and resilient investment portfolio 1H16 Total General Account Limited yield dilution invested assets 83% in Fixed income Fixed income Assets duration as at June 30, 2016 Real estate Alternative investments1 Life & Savings 8.3 years 5% 3% Listed equities
Slide 32: Asset & liability management (2/4)
ASSET & LIABILITY MANAGEMENT (2/4) Diversified and resilient investment portfolio Government and related bonds rating Corporate bonds rating1 42% of total General Account invested assets in 1H16 33% of total General Account invested assets in 1H16 AA 43% AA 14% 33% A AAA 23% Euro 250 Euro 199 AAA 12
Slide 33: Asset & liability management (3/4)
ASSET & LIABILITY MANAGEMENT (3/4) Well diversified and high quality new investments New fixed income investments in 1H16 Resilient new investment yield Investment Grade Government bonds credit & related Average rating: A Average rating: AA Yield on new investments in fixed income assets ~49% for Li
Slide 34: Asset & liability management (4/4)
ASSET & LIABILITY MANAGEMENT (4/4) L&S General Account investment spreads and margin Inforce business New business Spread above Resilient investment Spread above guaranteed rates margin1 guaranteed rate +140 bps 78 bps 74 bps Guidance: 3.4% 65-75 bps +160 bps 2.0% 2.0% 0.4% 1H16* 1H15* 1H16* 1H16* Y
Slide 35: Shareholders' equity
SHAREHOLDERS’ EQUITY Shareholders’ equity Key drivers of change In Euro billion In Euro billion 1H16 vs. FY15 + Change in net unrealized capital gains +6.8 74.1 68.5 + Net income for the period +3.2 - Dividends -2.7 - Change in pension benefits -0.8 - Forex movements net of hedging -0.3 - Subordinat
Slide 36: Debt & ratings
DEBT & RATINGS Financial debt Debt ratios In Euro billion Euro 2 billion debt FY15 1H16 18.6 issued in 1H16 to refinance in Explained by Euro 17.0 advance part of 2 billion debt issued Debt 26% 28% outstanding debt in 1H16 to Gearing2 refinance in advance part of outstanding debt 9.3 Interest 10.7x
Slide 37: Solvency II ratio
SOLVENCY II RATIO Solvency II ratio Key sensitivities In Euro billion Ratio as of June 30, 2016 197% 205% 197% Solvency II ratio Interest rate +50bps 202% +5 pts 59.2 57.4 -5 pts Interest rate -50bps 192% 28.8 29.2 Corporate spreads +75bps 196% -1 pt Available capital Equity markets +25% 200% +3 pts
Slide 38: Concluding remarks
Concluding remarks Thomas Buberl, incoming CEO
Slide 39: Ambition 2020: Focus and Transform
AMBITION 2020 FOCUS TRANSFORM Selective growth New customer experience Efficiency and margins From Payer to Partner Capital and cash Adapt capabilities A39 | Half Year 2016 Earnings | Presentation | August 3, 2016
Slide 40: Ambitious targets set on realistic assumptions
AMBITIOUS TARGETS SET ON REALISTIC ASSUMPTIONS UNDERLYING EARNINGS PER SHARE GROUP OPERATING FREE CASH FLOWS 3-7% EUR 28-32 bn CAGR 2015-2020E Cumulative 2016E-2020E ADJUSTED RETURN ON EQUITY SOLVENCY II RATIO 12% - 14% 170% - 230% 2016E-2020E Target range A40 | Half Year 2016 Earnings | Presentatio
Slide 41: AXA's strengths
AXA’S STRENGTHS Strong and resilient balance sheet Most diversified composite insurer Strong cash flows supporting dividends Early mover in Life & Savings product mix Proven track record in efficiency gains Clear vision “From payer to partner” Renewed and dynamic management team A41 | Half Year 2016
Slide 42: Q&A
Q&A HALF YEAR 2016 EARNINGS
Slide 43: Notes (1/2)
NOTES (1/2) Page A8 1. The Solvency II ratio is based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016 2. Solvency II ratio is estimated including
Slide 44: Notes (2/2)
NOTES (2/2) Page A31 1. Mainly Private Equity and Hedge Funds 2. Other fixed income include Asset backed securities (Euro 11 billion), residential loans (Euro 12 billion), commercial & agricultural loans (Euro 19 billion) and agency pools (Euro 1 billion) 3. 1H16 invested assets referenced in page 5
Slide 45: Definitions
DEFINITIONS AXA’s 1H16 financial statements are subject to a completion of limited review by AXA’s independent auditors. AXA's 1H16 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of June 30, 2016. Underlying Earnings, Adju
Slide 46: Appendices
AXA HALF YEAR 2016 EARNINGS Appendices August 3, 2016
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 B11 LIFE & SAVINGS B15 PROPERTY & CASUALTY B31 HEALTH B37 ASSET MANAGEMENT B39 BALANCE SHEET B42 CORPORATE RESPONSIBILITY B64 B3 | Half Year 2016 Earnings | Appendices | August 3, 2016
Slide 49: Business overview
Business overview
Slide 50: Life & Savings | Scope overview
LIFE & SAVINGS | Scope overview Global footprint Well balanced business mix 1H16 APE by geography 1H16 APE by business Mutual Funds & other 8% MedLA1 G/A Savings 7% 23% NORCEE2 Total APE G/A Protection & Asia (incl. Japan) Euro 3,274 million Health 14% 27% 40% Unit-Linked 29% US France 26% Strong pr
Slide 51: Property & Casualty | Scope overview
PROPERTY & CASUALTY | Scope overview Global footprint Strong presence in Motor 1H16 revenues by geography 1H16 revenues by business Construction Workers’ compensation 1% 6% Other1 Liability Asia 0% 7% 3% Other3 Motor Belgium 13% Total 41% 6% MedLA2 Euro 18.6 billion 20% Direct business unit 8% Healt
Slide 52: AXA's footprint in high growth markets
AXA’S FOOTPRINT IN HIGH GROWTH MARKETS Life & Savings Property & Casualty 1H16 APE by geography 1H16 revenues by geography Mexico Singapore Czech Republic 3% 5% Thailand 3% 1% Philippines 3% Poland Brazil Morocco 2% 1% Other1 6% 3% Singapore Malaysia 6% Hong Kong 6% Mexico 32% Colombia 26% Indonesia
Slide 53: L&S economic gross revenues
L&S ECONOMIC GROSS REVENUES 1H15 economic 1H16 economic Change on IFRS change on In Euro million gross revenues gross revenues comparable basis comparable basis Life & Savings United States 6,761 6,921 +2% +2% France 8,212 7,937 -4% -7% NORCEE Germany 3,300 3,325 +1% +1% Switzerland 5,367 5,119 -1%
Slide 54: P&C economic gross revenues
P&C ECONOMIC GROSS REVENUES 1H15 economic 1H16 economic Change on IFRS change on In Euro million gross revenues gross revenues comparable basis comparable basis Property & Casualty France 3,338 3,703 +1% +1% UK & Ireland 2,451 2,565 +7% +7% NORCEE Germany 2,454 2,517 +3% +3% Switzerland 2,854 2,771
Slide 55: Asset Management | Scope overview
ASSET MANAGEMENT| Scope overview Complementary business models • Multi-expert model: structured by • Risk-reducing, return-seeking, diversifying “Expertise” strategies and customized solutions • Expertise in fixed income, equities, • Expertise in actively managed equity and fixed PRODUCT quantitativ
Slide 56: Group
Group
Slide 57: Revenues
REVENUES Revenues by segment 1H15 Reported Comparable In Euro million 1H16 change change restated Life & Savings1 31,722 31,040 -2% -2% Property & Casualty 18,183 18,602 +2% +4% Asset Management 1,956 1,799 -8% -8% International Insurance 2,162 2,298 +6% +5% Banking 302 297 -2% -2% Revenues 54,324 5
Slide 58: Underlying earnings by geography
UNDERLYING EARNINGS BY GEOGRAPHY Underlying Earnings In Euro million Change at 1H15 1H16 Reported change constant restated Forex Life & Savings 1,835 1,915 +4% +4% United States 513 464 -10% -10% France 421 418 -1% -3% 1 NORCEE 352 418 +19% +21% Asia-Pacific (incl. Japan) 487 553 +14% +11% 2 MedLA 7
Slide 59: 1H16 key sensitivities
1H16 KEY SENSITIVITIES P&L Balance Sheet 1 Impairments net of Change in fair value Net unrealized capital In Euro billion hedges through and Forex through gains through Adjusted Earnings Net Income Shareholders' Equity -25% -0.4 -0.5 -0.9 Equities +25% 0.0 +0.2 +1.4 -100 bps -0.1 +6.7 Interest rates
Slide 60: Life & Savings
Life & Savings
Slide 61: Life & Savings
LIFE & SAVINGS 1 REVENUES, NEW BUSINESS VOLUMES AND PROFITABILITY Page B17 2 UNDERLYING EARNINGS MARGIN ANALYSIS Page B18 3 UNDERLYING EARNINGS MARGIN ANALYSIS BY BUSINESS Page B25 4 FOCUS ON THE US Page B30 B16 | Half Year 2016 Earnings | Appendices | August 3, 2016
Slide 62: L&S | Revenues and net inflows
1 L&S | Revenues and net inflows 1H16 L&S revenues by region L&S net inflows In Euro billion Net flows by country/region In Euro billion 1H15 restated 1H16 France +1.8 +1.2 MedLA NORCEE +2.4 +1.2 -6% 2.9 United States 0.0 -0.2 9.3 Asia Pacific (incl. Japan) +1.2 +1.7 Asia (incl. Japan and 4.1 NORCEE
Slide 63: L&S | Underlying earnings margin analysis
2 L&S | Underlying Earnings margin analysis Gross Margin Expenses In Euro million In Euro million 1 1H16 Change 1H16 Change1 Margin on revenues 2 2,473 -6% Acquisition expenses 2,132 -3% Margin on assets 2,772 -5% Admin. Expenses 1,424 -8% Technical margin 629 0% VBI amortization 84 -21% + - + UE fr
Slide 64: L&S | Margin analysis: margin on revenues
2 L&S | Margin Analysis Margin on revenues Details of margin on revenues Average margin on L&S revenues1 8.0% -0.1 pt -0.4 pt business mix Detail by product +0.3 pt country mix G/A Protection & Health: 12.4% G/A Savings: 2.1% Unit-Linked: 4.4% Mutual funds & other: 5.4% Margin on revenues 1 x Euro 2
Slide 65: 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 79 bps -1 bp 158 bps annualized Unit-Linked management -1 bp business mix -1 bp country mix fees x Euro 1,250 million -6% Margin on assets 1 Unit-Linked av
Slide 66: 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 1,250 million -6% Average management fees on Margin on assets 1 + general account reserves Euro 2,772 million -5% 37 bps -2 bps 1. Including other fees (mainly 74 bps annualiz
Slide 67: L&S | Margin analysis: technical margin
2 L&S | Margin Analysis Technical margin Details of technical margin Mortality & morbidity margin and other 1 Euro 891 million -5% Technical margin + * Euro 629 million -11% * Or 0% on a constant forex basis which GMxB Variable Annuity margin includes reclassification from margin on revenues to
Slide 68: L&S | Margin analysis: gross technical margin
2 L&S | Margin Analysis Focus on gross technical margin Gross mortality, morbidity & surrender margin (pre-tax) In Euro million -5% 1H16 mortality, morbidity and surrender margin evolution 891 mainly explained by: 817 • Non-repeat of exceptional favorable reserve development in Group Protection in F
Slide 69: L&S | Underlying earnings by business
3 L&S | Underlying Earnings by business 1 Euro million 1H15 restated 1H16 % change G/A Protection & Health 1,166 1,169 -4% G/A Savings 425 415 -2% Unit-Linked 732 647 -11% Mutual funds & Other 60 85 +54% Pre-tax Underlying Earnings 2,384 2,315 -4% Tax and Minority interest -549 -400 Underlying Earni
Slide 70: L&S | 1H16 margin analysis by business
3 L&S | 1H16 Margin analysis by business G/A Protection Mutual Funds In Euro million G/A savings Unit-Linked & Health & Other Margin on 8% 1,935 140 354 44 revenues of GWP Investment 74 bps 427 793 88 30 margin of avg. G/A reserves2 Management 158 bps 1,250 fees of avg. UL reserves2 Technical 749 23
Slide 71: L&S | G/A Protection & Health
3 L&S | Margin Analysis by business G/A Protection & Health Technical result Net investment margin In Euro million In Euro million Protection & Health Protection & Health GWP 15,551 +4% 173,191 +2% average reserves x x Protection & Health Protection & Health 25 bps 95.6% +0.5 pt -1 bp Combined ratio
Slide 72: L&S | 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 improved by 0.8 point: +0.5 pt + Lower administration expenses mainly in 95.6% 95.6% Switzerland, Japan and Germany Expense 13.4% 12.8% Ratio Loss Loss ratio 82.2% 82.7
Slide 73: L&S | G/A Savings
3 L&S | Margin Analysis by business G/A Savings In Euro million Comp. Comp. 1H16 1H16 Change Change G/A Savings G/A Savings 6,629 +8% 186,334 +2% Gross revenues Average reserves x x Margin on G/A Savings 43 bps G/A Savings 2.1% -0.7 pt -3 bps Investment spread revenues 85 bps annualized Comp. 1H16 C
Slide 74: L&S | Unit-Linked
3 L&S | Margin Analysis by business Unit-Linked In Euro million Comp. Comp. 1H16 1H16 change change Unit-Linked Gross Unit-Linked 8,037 -14% 157,912 -5% revenues Average reserves x x Average margin UL average 79 bps 4.4% 0.0 pt -1 bp on UL revenues Management fees 158 bps annualized Comp. 1H16 chang
Slide 75: L&S | Focus on the US
4 L&S | Focus on the US US Variable Annuity GMxB Underlying Earnings In Euro million, net of DAC and tax1 FY14 FY15 1H15 1H16 Total Variable Annuity base fees & other, less expenses 2962 381 185 166 GMxB hedge margin -74 -13 -10 -21 o/w Basis -26 -12 -1 -6 o/w Volatility -7 -3 1 -12 o/w Interest rat
Slide 76: Property & Casualty
Property & Casualty
Slide 77: P&C | Revenues and net new contracts
P&C | Revenues and net new contracts 1H16 P&C revenues by region 1H16 P&C personal net new contracts High growth markets In Euro billion In thousands Direct Mature markets Asia +4% +94 Direct NORCEE +200 +146 +6% 0.6 +2% 1.5 +26 2.6 6.5 -79 -78 UK & Ireland +7% -194 3.7 MedLA France 3.8 -73 +7% +1%
Slide 78: P&C | Underlying earnings analysis
P&C | Underlying Earnings analysis Net technical result Net investment income In Euro million In Euro million 1H16 Change 1H16 Change Revenues 18,602 +4% Average P&C assets 64,086 +7% x x Combined ratio (in %)1 96.0% +0.9 pt Average Asset Yield 3 3.1%* -0.3 pt * annualized Net technical result2 621
Slide 79: P&C | Details on combined ratio
P&C | Details on Combined Ratio Combined ratio Expense ratio roll-forward +0.9pt 27.1% 26.2% 0.0pt 95.1% 96.0% 1H15 Acquisition Administrative 1H16 Expense Expenses Expenses 26.2% 27.0% Ratio +0.3pt change on a comparable basis* Loss ratio roll-forward Loss 69.0% 69.0% Ratio 69.0% -0.3pt 69.0% +0.7p
Slide 80: P&C | Details on current year loss ratios
P&C | Details on current year loss ratios Personal Motor Personal non Motor +0.9pt 63.1% 75.3% +4.8pts +0.5pt 75.3% 0.6pt +0.3pt -5.9pts 61.6% -1.2pts o/w Turkey o/w Turkey +1.5pt - 4.2pts +3.0pts 1H15 CY Nat Cat Price effect Frequency & Other1 1H16 CY 1H15 CY Nat Cat Price effect Frequency & Other1
Slide 81: 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% 3.1% 2.7% 2.0% 2.1% 2.1% 1.7% 1.8% 1.8% 1.4% 1.2% 1.2% 1.3% 0.9% 1.0% 0.6% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15 1H16 Reser
Slide 82: Health
Health
Slide 83: Health | Revenues
Health | Revenues 1H16 Health revenues 1H16 Health revenues by country In Euro million In Euro billion +3% 6,112 6,240 Other1 3% Hong Kong 4% Asia 10% Japan France 10% 24% MedLA 11% Germany 21% UK 16% 1H15 1H16 Total: Euro 6.2 billion Changes are on a comparable basis 1. Other includes Belgium, Cent
Slide 84: Asset Management
Asset Management
Slide 85: Asset Management | Underlying earnings
ASSET MANAGEMENT | Underlying Earnings Details of Asset Management margin analysis Margin1 Expenses1 In Euro million In Euro million 1H16 Change2 1H16 Change2 3 Asset Management Asset Management fees 1,699 -5% 1,250 -3% expenses Distribution revenues 338 -13% Investment result -16 +29% Distribution
Slide 86: Asset Management | Underlying earnings
ASSET MANAGEMENT | Underlying Earnings Details on Asset Management revenues Average Assets under Management 30 bps* -1bp* Assets Management fees x Euro 1,581 -7% o/w performance fees Euro 31 million (-16%) Average Assets under Management o/w research fees Euro 216 million (-3%) Euro 1042 billion -3%
Slide 87: Balance Sheet
Balance Sheet
Slide 88: Balance Sheet
BALANCE SHEET 1 GENERAL ACCOUNT INVESTED ASSETS B44 1.1 Government bonds and related B45 1.2 Corporate bonds B47 1.3 Asset backed securities B51 1.4 Equity B52 1.5 Real estate B54 1.6 Hedge Funds B55 1.7 Private Equity B56 1.8 Mortgage loans B57 2 FOCUS ON NET UNREALIZED CAPITAL GAINS B58 3 ASSET LI
Slide 89: General account invested assets
1 GENERAL ACCOUNT INVESTED ASSETS Invested assets (100%) FY15 % 1H16 % in Euro billion Published Fixed income 457 83% 494 83% o/w Govies and related 225 41% 250 42% Changes in asset mix o/w Corporate bonds 190 34% 199 33% Yields: positive impact o/w Asset backed securities 10 2% 11 2% linked to decr
Slide 90: Government bonds and related
1.1 GOVERNMENT BONDS AND RELATED Breakdown by geography Breakdown by segment Other2 Austria Netherlands 1% 3% 2% P&C 9% Supranational Institutions Ireland 4% 1% Others France L&S 6% 20% 90% Switzerland 6% Spain 6% Euro 250 billion Gross1 unrealized capital gains and losses Japan US 14% In Euro billi
Slide 91: Focus on exposure to Eurozone peripheral countries
1.1 GOVERNMENT BONDS AND RELATED FOCUS ON EXPOSURE TO EUROZONE PERIPHERAL COUNTRIES Exposure by issuer Gross book value Gross market value Gross book value Gross market value in Euro billion December 31, 2015 December 31, 2015 June 30, 2016 June 30, 2016 Italy 18.5 22.6 19.0 23.1 Spain 12.1 14.6 12.
Slide 92: Corporate bonds
1.2 CORPORATE BONDS Breakdown by industry Breakdown by segment Other2 Technology 2% 3% P&C Basic materials 4% 15% Other 2% Consumer cyclical 6% L&S 83% Energy Banks 6% 37% Other financials Euro 199 billion Gross1 unrealized capital 7% gains and losses Communications In Euro billion 8% 12.2 Industria
Slide 93: 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 Others1 Total As of June 30, 2016 P NP P NP P NP P NP P NP P NP P NP P NP AAA 2.2 1.0 0.0 1.0 0.1 0.1 8.8 1.1 6.1 0.9 - 0.8 0.2 0.3
Slide 94: Focus on banking corporate bonds
1.2 FOCUS ON BANKING CORPORATE BONDS As of June 30, 2016 Gross market value Senior Debt Subordinated Dent Total in Euro billion Secured Non secured Lower Tier 2 Upper Tier 2 Tier 1 Preferred By rating: AAA 21.0 0.0 0.0 0.0 0.0 0.0 21.1 AA 8.4 7.7 0.2 0.0 0.0 0.0 16.3 A 3.4 19.1 1.9 0.0 0.0 0.0 24.4
Slide 95: Focus on CDS
1.2 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 96: Asset backed securities
1.3 ASSET BACKED SECURITIES Breakdown by asset type1 Breakdown by rating Other asset-backed Mortgage-backed CLO 83% Below investment grade Commercial MBS Non rated/Equity 5% 8% 3% US Subprime, Alt-A BBB & NC RMBS 2% 5% Euro 12 billion A Prime Residential 8% AAA 4% 59% Consumer ABS2 AA 2% 19% CDO 1%
Slide 97: Listed equity portfolio overview
1.4 LISTED EQUITY PORTFOLIO OVERVIEW Breakdown by geography Breakdown by segment Other2 3% P&C 20% Rest of the World 14% US L&S Other Eurozone 24% countries 77% 9% UK Euro 18 billion Gross1 unrealized capital 4% gains and losses Switzerland France 5% 22% In Euro billion Japan 3.4 6% 2.8 Belgium Germ
Slide 98: Shareholders' exposure to listed equity
1.4 SHAREHOLDERS’ EXPOSURE TO LISTED EQUITY Estimated shareholders’ exposure to listed equity (in Euro billion) FY15 1H16 20 18 9 8 Gross Group share Gross Group share nominal 100% net of hedge, nominal 100% net of hedge, tax & PB tax & PB B53 | Half Year 2016 Earnings | Appendices | August 3, 2016
Slide 99: Real estate investments
1.5 REAL ESTATE INVESTMENTS Defensive portfolio with good performance over the long term Breakdown by geography Breakdown by segment US UK 1% P&C 6% 19% Japan Other Eurozone 1% countries 7% Switzerland L&S Germany 38% 81% 9% Market value1 Euro 30 billion Belgium 10% Breakdown by type and geography F
Slide 100: Hedge fund investments
1.6 HEDGE FUND INVESTMENTS Diversified portfolio of hedge funds AXA portfolio return drivers Well diversified exposure Alternative Credit : 8 managers Relative value credit 17% Alternative Credit Multi-Strategy program program 65% Short dated carry 35% 57% Deep value credit 14% Real asset cash flow
Slide 101: Private equity investments
1.7 PRIVATE EQUITY INVESTMENTS Diversified portfolio built over the long run Breakdown by geography Breakdown by expertise 6% Venture Japan 11% Other Infrastructure 3% 6% 12% Private debt 71% Buy-out Market value US 32% Euro 9 billion Diversified portfolio Europe 60% 43% Direct 57% As of June 30, 20
Slide 102: Mortgage loans & other
1.8 MORTGAGE LOANS & OTHER Low risk mortgage loan portfolio 1H16 market value by entity1 36% 23% Switzerland Germany Other 8% 50% Residential 87% Residential 50% Commercial 13% Commercial France 9% Switzerland 25% 9% 36% United States France 5% Residential 29% Agricultural Market value2 Euro 31 bill
Slide 103: Focus on net unrealized capital gains
2 FOCUS ON NET UNREALIZED CAPITAL GAINS Balance sheet net unrealized Off balance sheet net unrealized capital gains capital gains2 In Euro billion In Euro billion 19.4 0.8 6.1 3.0 5.3 12.8 Equities & Other 1 1.7 Corporate bonds 1.6 Government bonds 15.6 and related 9.5 FY15 1H16 FY15 1H16 Net unreal
Slide 104: 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 +140 bps 78 bps 74 bps Guidance: 3.4% 65-75 bps +160 bps 2.0% 2.0% 0.4% 1H16* 1H15* 1H16* 1H16*
Slide 105: Asset & liability management (2/2)
3 ASSET & LIABILITY MANAGEMENT (2/2) L&S General Account investment spreads for main entities Inforce New business 3.8% 310bps 1.7% 170bps • Average G/A reserves: Euro 104 billion • G/A Savings new business sales with France 0.7% 0.0% long term guarantees stopped in 1998 1H16* 1H16* 0bp 90bps • Aver
Slide 106: Net financial debt - long-term maturities
4 NET FINANCIAL DEBT - LONG-TERM MATURITIES Net financial debt Contractual maturity breakdown In Euro billion In Euro billion Debt 26% 28% 3.6 gearing 3.0 18.6 0.8 17.0 6.3 1.7 0.3 2.4 0.4 9.3 2016 2017 2018 2019 2020 2021- 2026- Undated 2025 2040 9.5 Economic maturity breakdown In Euro billion 0.8
Slide 107: Solvency II ratio
5 SOLVENCY II RATIO Solvency II ratio Key sensitivities In Euro billion Ratio as of June 30, 2016 197% 205% 197% Solvency II ratio Interest rate +50bps 202% +5 pts 59.2 57.4 -5 pts Interest rate -50bps 192% 28.8 29.2 Corporate spreads +75bps 196% -1 pt Available capital Equity markets +25% 200% +3 p
Slide 108: Solvency II required capital
5 SOLVENCY II REQUIRED CAPITAL SPLIT BY RISK. GEOGRAPHY & BUSINESS Required capital by risk Required capital by business Operational Asset Management & Banking Counterparty 4% 5% Holdings & Other 10% 18% Market 41% P&C 19% 54% 24% 25% Property & Life & Savings Life Casualty Required capital by geogr
Slide 109: Corporate Responsibility
Corporate Responsibility
Slide 110: Main SRI ratings
Main SRI ratings 2016 Sector leader, Ranked “A+” in the 2016 Included in the CDP Climate Included in “Assessment Report” Disclosure Leadership Vigeo Euronext indices (Responsible Investment strategy) Index, with a score of 98/100 Included in DJSI Europe and DJSI 2016 overall score 87/100 World indic
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