Slide 1: Half Year 2019 Earnings
Half Year 2019 Earnings Press conference 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 maybe forward-looking statements including,but not limited to,statements that are predictions ofor indicate future events, trends
Slide 3: Agenda
Agenda 1. Introduction 2. Business performance 3. Summary of earnings & Financial strength 4. Concluding remarks 3 Half Year Earnings 2019 | August 1, 2019
Slide 4: Introduction
Introduction Thomas Buberl Group CEO
Slide 5: Strong operating performance in the first half of 2019
Strong operating performance in the first half of 2019 Revenues Underlying earnings1 Dynamic organic growth € 58 bn € 3.6 bn and strong operating performance +4% +7% Strong contribution from each of our preferred segments and major geographies Underlying earnings Well on track on our transformation
Slide 6: Dynamic growth driven by preferred segments
Dynamic growth driven by preferred segments Chiffre d’affaires Revenues P&C Commercial lines 1H19 2018 32% of revenues1 +6% € 58 bn Protection 15% of revenues1 +3% +5% Health +4% 12% of revenues1 6 Half Year Earnings 2019 | August 1, 2019 All notes are on pages 32 and 33 of this document
Slide 7: Profitable growth
Profitable growth P&C Protection Health Combined ratio Combined ratio Combined ratio 95.1% 93.2% 93.9% -1.2 pts -1.0 pt1 -0.7 pt (constant scope) 7 Half Year Earnings 2019 | August 1, 2019 All notes are on pages 32 and 33 of this document
Slide 8: Solid contribution to growth and earnings from AXA XL
Solid contribution to growth and earnings from AXA XL Strong and disciplined growth Delivery on earnings +9% 1H19 revenues € 0.5 bn1H19 underlying earnings ⚫ Continued firming of the pricing cycle, ⚫ Synergies progressing well on costs, revenues with measurable price increases across most lines and
Slide 9: Reducing Equitable Holdings ownership and deleveraging the Group
Reducing Equitable Holdings ownership and deleveraging the Group Reducing EQH ownership Reducing debt gearing3 59% 32% Ca €0.6 bn4 30.8% debt notified for repayment in August 39%1 Mandatory Exchangeable bond 25% - 28% 30.2% Target range by 2020 Economic 30% ownership² FY18 1H19 FY18 1H19 9 Half Year
Slide 10: Expanding our Payer to Partner strategy
Expanding our Payer to Partner strategy Health P&C Commercial lines Creating ecosystems that combine Risk Advisory Services provided by health clinics with AXA’s insurance services AXA XL Risk Consulting in emerging markets ⚫ SiteForward: client risk visualization portal Mexico + ⚫ Connected Cargo:
Slide 11: Our actions to help society
Our actions to help society Climate change Health & protection Protect the climate by Protect vulnerable populations preserving biodiversity by encouraging social inclusion ⚫ Joint recommendations from AXA and WWF to ⚫ Develop telemedicine services to improve health create a task force to better und
Slide 12: Well advanced on our transformation...
Well advanced on our transformation... ⚫ On-boarding of XL to become the #1 Global Health Commercial P&C insurer, with leadership in Specialty and North American lines ⚫ Leveraging our leading market positions in 1H19 core European markets, to grow in preferred Protection segments P&C ⚫ Building on
Slide 13: ... and to achieve the objectives of our Ambition 2020 plan
... and to achieve the objectives of our Ambition 2020 plan Underlying earnings Free cash-flows3 Adjusted return Solvency II ratio4 per share1 on equity1 € 1.46 € 6.6 bn 18.3% 190% +10% FY18 1H19 1H19 1H19 vs 1H18 3% - 7% € 28-32 bn 14% - 16% 170% - 220% UEPS CAGR2 2015-2020 Cumulative 2015-2020 Tar
Slide 14: Business performance
Business performance Gérald Harlin Deputy CEO and Group CFO
Slide 15: France | Continued earnings growth from higher technical margin
France | Continued earnings growth from higher technical margin, notably in P&C +3% Underlying earnings In Euro Million Revenues +7% 873 Stable P&C Commercial +6% +3% 816 lines Health Protection Strong improvement in claims experience and more favorable prior year development in P&C P&C Health L&S N
Slide 16: Europe | Increased technical profitability, with disciplined growth
Europe | Increased technical profitability, with disciplined growth +2% Underlying earnings In Euro million Revenues +4% 1,271 1,333 +4% +3% -2% P&C Commercial Health Protection Spain Improved claims experience lines Italy in P&C and Health (Germany, UK & Ireland UK & Ireland, Spain and Italy) P&C H
Slide 17: Asia | Strong earning growth across the region
Asia | Strong earning growth across the region +5% Underlying earnings In Euro million Résultat opérationnel Revenues +8% 620 +5% +3% +11% P&C Commercial Health Protection 544 Higher profit contribution from lines Asia Asia High Potentials notably High Potentials from Thailand and China P&C Health N
Slide 18: International | Delivering strong profit growth and demonstrating potential
International | Delivering strong profit growth and demonstrating potential +6% Underlying earnings In Euro million Résultat opérationnel Revenues +16% 240 +7% +11% +4% P&C Commercial Protection 210 Higher contribution across all lines Health business lines in Mexico More favorable claims P&C Health
Slide 19: AXA IM | Lower earnings following a challenging market environment
AXA IM | Lower earnings following a challenging market environment - 8% Underlying earnings Résultat opérationnel In Euro million Gross revenues -12% € 0.6 bn 139 € +4 bn 123 Lower performance, transaction and Net inflows (excl. Asian JVs) management fees Asian JVs (€ -6 bn) Lowerexpenses € 123 bn A
Slide 20: AXA XL | Solid earnings contribution and improved business mix
AXA XL | Solid earnings contribution and improved business mix +9% Revenues Underlying earnings Résultat opérationnel € 502 million Broad based price increases and volume growth +6% Specialty +15% P&C Insurance +2% Reinsurance Early delivery of expense synergies P&C Firming pricing cycle Combined ra
Slide 21: United States | Lower earnings contribution in line with reduced EQH ownership
United States | Lower earnings contribution in line with reduced ownership of EQH Underlying earnings Reduced economic ownership1 to 30% In Euro million 465 US Life 283 Reduced ownership (Euro -0.2 bn) ⚫ 12% sold for $ 1.5 bn March 2019: Higher investment and GMxB ⚫ June 2019: 9% sold for $ 1.0 bn 1
Slide 22: Summary of earnings & Financial strength
Summary of earnings & Financial strength
Slide 23: Underlying earnings
Underlying earnings In Euro million +7% 1H18 1H19 Change 3,620 France 816 873 +7% 3,298 Europe 1,271 1,333 +4% Asia 544 620 +8% +5% International 210 240 +16% Transversal 198 174 -12% AXA XL 77 502 - United States 465 283 - Central Holdings -282 -406 - Underlying earnings 3,298 3,620 +7% 1H18 1H19 2
Slide 24: Adjusted earnings
Adjusted earnings In Euro million +8% 1H18 1H19 4,006 3,628 Underlying earnings 3,298 3,620 Net realized capital gains/losses 330 386 o/w realized capital gains 447 448 o/w net impairments -76 -42 o/w hedging of equity portfolio -41 -20 Adjusted earnings 3,628 4,006 1H18 1H19 24 Half Year Earnings 2
Slide 25: Net income & Shareholders' equity
Net income & Shareholders’ equity Shareholders’ Net income 1H18 1H19 equity In Euro million Accounting In Euro billion transaction to be Adjusted earnings 3,628 4,006 compared with a -19% Euro +6 bn +4.3 Change in fair value and Forex -346 -767 increase in net unrealized capital 2,796 gains recorded
Slide 26: Financial strength
Financial strength Solvency II ratio Financial strength ratings Capitaux propres 193% 190% AA- stable Aa3 stable AA- stable FY18 1H19 26 Half Year Earnings 2019 | August 1, 2019
Slide 27: General Account invested assets
General Account invested assets Allocation of invested assets New fixed income investments (General Account insurance invested assets) 1H19 7% 49% 5% 31% Below investment grade credit * Government bonds and related Treasury 4% Corporate bonds Average rating: AA Listed equities 9% 6% Asset backed New
Slide 28: Concluding remarks
Concluding remarks Thomas Buberl Group CEO
Slide 29: Disciplined execution and delivery
Disciplined execution and delivery +4% topline growth, driven by preferred segments and geographies Strong operating performance, with +10% in underlying earnings per share Great first half from AXA XL, with a solid contribution to the Group's earnings On track in our transformation process and towa
Slide 30: Q&A session
Q&A session
Slide 31: Socially Responsible Investment Ratings
Socially Responsible Investment Ratings 2018: Sector Leader “A+” 2018 UN PRI Scorecard Score: A- 1st / 49 insurance companies (focus on Responsible Investment) Level Score: « Leadership » Included in Euronext Vigeo indices Score: AAA 2018: in Top 5% Included in the Score: 79/100 FTSE4GOOD Included i
Slide 32: Notes (1/2)
Notes (1/2) Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified. Page 5 1. Underlying earnings and underlying earnings per share are APM. For further information, please refer to the reconciliat
Slide 33: Notes (2/2)
Notes (2/2) Page 12 1. Interbrand Best Global Brands 2018 rankings - #1 insurance brand for the 10th year in a row. 2. Half-Year 2019 pre-tax underlying earnings excluding EQH and AXA SA and other central holdings. Half-Year 2017 pre-tax underlying earnings includes EQH and excludes AXA SA and other
Slide 34: Scope
Scope Note: Following the acquisition of XL Group in 2018, the segment reporting has been revised and retroactively restated in this presentation. France: includes insurance activities, banking activities and holdings in France. Europe: includes Switzerland (insurance activities), Germany (insurance