Slide 1: Full Year 2023 Earnings & Strategic Plan 2024-2026
Full Year 2023 Earnings & Strategic Plan 2024-2026 Press conference February 22, 2024
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, t
Slide 3: Agenda
Agenda 1 Strategic vision Thomas Buberl, Group CEO 2 Execution of the Strategic Plan Frédéric de Courtois, Group Deputy CEO 3 Financial performance Alban de Mailly Nesle, Group CFO 4 Conclusion Thomas Buberl, Group CEO 3 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 4: Strategic vision
1 Strategic visionThomas Buberl Group CEO 4 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 5: Full Year 2023 Earnings: Very strong performance
Full Year 2023 Earnings I Very strong performance GROUP UNDERLYING GROSS WRITTEN EARNINGS1 PREMIUMS2 €7.6bn €103 bn +6% vs FY22 IFRS4 +3% vs FY22 IFRS4 GROUP UNDERLYING SOLVENCY II EARNINGS PER SHARE3 RATIO +8% 227% vs FY22 IFRS4 +12pts vs FY22 5 Full Year 2023 Earnings & Strategic Plan 2026 | Febru
Slide 6: Full Year 2023 Earnings: Revenue growth driven by P&C
Full Year 2023 Earnings I Revenue growth driven PROPERTY LIFE ASSET HEALTH by P&C & CASUALTY & SAVINGS MANAGEMENT €53.0 bn €32.0bn €16.1bn €1.6bn +7% +1% -7% -2% +7% excluding non-renewed Group contracts1 FY23 revenues vs FY22 6 Full Year 2023 Earnings & Strategic Plan 2026 February 22, 2024 See glo
Slide 7: Driving Progress 2023: Successful delivery of key financial targets
Driving Progress 2023 I Successful delivery of key financial targets FINANCIAL INDICATORS ACHIEVEMENTS Target Achievement • Simplified and focused on UNDERLYING EARNINGS PER SHARE 3% to 7% 2020 rebased-2023 CAGR +9% 2020 rebased-2023 CAGR markets with leading positions 22 non-core disposals, market
Slide 8: AXA today: Well-positioned in the current environment
AXA today I Well-positioned in the current environment to capture long-term opportunities Current environment Long-term trends • Diversified mix, high solvency and prudent asset • Capitalizing on protection needs resulting from allocation with resiliency to recession risks and retirement and healthc
Slide 9: AXA today: Balanced between B2B and B2C
AXA today I Balanced between B2B and B2C _ % ~50 _ % ~50 Commercial Retail Insurance Insurance Largest global underwriter Top 3 European of corporate risks multi-line insurer P&C Commercial lines P&C _ (~35%) _ (~20%) Employee Benefits1 Life & Health _ (~15%) _ (~30%) + ASSET MANAGEMENT 10 Full Year
Slide 10: AXA today: A committed company towards its employees and society
AXA today I A committed company towards its employees and society Employees Society • Launch of the We Care program in October 2023 • For the first time, AXA has published targets to drive for our employees across 4 pillars: the decarbonization of some of its P&C insurance • Caregiver policy portfol
Slide 11: AXA today: Our performance at the service of shared values
AXA today I Our performance at the service of shared values End of 2023 Clients Employees • More than €50bn in claims compensated • €8.6bn of salaries and bonuses to bounce back after a claim paid to our employees • €450M dedicated to climate related • 17,000 recruitments globally claims in France i
Slide 12: Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024 See glossary
13 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024 See glossary for terminologies and footnotes on page 37, 38, 39 & 40 of this document.
Slide 13: Focused on scaling our core business
Focused on scaling our core business Driving Scaling Expanding AXA’s Growth Excellence responsible role in society Care & Dare Strong capital management 14 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024 See glossary for terminologies and footnotes on page 37, 38, 39 & 40 of this d
Slide 14: Ambitious financial targets 2024-2026
Ambitious financial targets 2024-2026 Driving Progress 2023 Unlock the Future targets targets UNDERLYING EARNINGS PER SHARE 3% to 7% CAGR 2020 rebased - 2023 6% to 8% CAGR 2023 – 2026E UNDERLYING RETURN ON EQUITY 13% to 15% 14% to 16% + Strenghtening of our payout policy 2021 - 2023 2024E - 2026E CU
Slide 15: Execution of the Strategic Plan
2 Execution of the Strategic Plan Frédéric de Courtois Group Deputy CEO 16 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 16: AXA today: High quality and scaled businesses
AXA today I High quality and scaled businesses WE ARE LEADERS IN THE MARKETS WITH DISTINCT PRODUCT SCALED BUSINESSES WE COMPETE IN AND DISTRIBUTION CAPABILITIES FY23 REVENUES2 #1 GLOBAL P&C • Full product offering €35 bn P&C CL COMMERCIAL LINES • Global broker network combined €16bn AXA XL Insurance
Slide 17: Focused on scaling our core business
Focused on scaling our core business Driving Scaling Expanding AXA’s Growth Excellence responsible role in society Fostering structural growth Scaling technical capabilities Developing our inclusive insurance offers Expanding selectively Enhancing operational excellence Continuing our commitments Gr
Slide 18: Driving Growth
Driving Growth P&C MID-MARKET NEW CORPORATE RISKS P&C • White space in UK, Spain and Italy, • Cyber and energy transition COMMERCIAL LINES selectively building in the US EMPLOYEE BENEFITS FOR SME INCREASE SHARE OF AGENTS EMPLOYEE BENEFITS • Rolling out underwriting automation SELLING HEALTH & HEALTH
Slide 19: Scaling Excellence
Scaling Excellence Technical excellence Operational • Geospatial AI and natural catastrophes management excellence P&C • Pro-actively adjusting AXA XL underwriting to changing market ACROSS ALL BUSINESSES COMMERCIAL LINES conditions SYSTEMATIC AUTOMATION • Further digitalization of processes • Integ
Slide 20: Expanding AXA's responsible role in society
Expanding AXA’s responsible role in society INCLUSIVE INSURANCE CLIMATE TRANSITION Addressing protection gaps in our markets Leverage unique expertise and assets to support our customers • Accelerate growth in Emerging Markets • Deliver 9,000+ climate adaptation solutions & services1 ranging from tr
Slide 21: Care & Dare: A key program on our strategic journey
Care & Dare I A key program on our strategic journey Aligning our corporate culture, our employees’ engagement and our strategic vision has always been the key to our company’s success Talent Management Capabilities Inclusion & Care & Culture • Improve retention of talent in a • Grow in a caring and
Slide 22: Financial performance
3 Financial performance Alban de Mailly Nesle Group CFO 23 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 23: Underlying earnings in steady progress
Underlying earnings in steady progress In Euro billion +34% 7.3 7.6 6.8 6.2 6.4 6.0 Exceptional COVID impact impact, 5.7 o/w COVID 4.3 2016 2017 2018 2019 2020 2021 2022 2023 rebased 24 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024 See glossary for terminologies and footnotes on
Slide 24: Full Year 2023 Earnings: Net income of Euro 7.2 billion
Full Year 2023 Earnings I Net income of Euro 7.2 billion NET INCOME In Euro billion In Euro earnings Underlying million P&C 5.0 +10%1 vs 2022 IFRS4 +45% Underlying earnings Life & Health 3.2 7.2 Underlying earnings Asset Management 0.4 5.1 Underlying earnings Holdings & Other -1.0 Total underlying e
Slide 25: Full Year 2023 Earnings: Solvency II at 227%
Full Year 2023 Earnings I Solvency II at 227%, supported by strong capital generation In Euro billion Provision for share buy-back for 2024: €1.6bn NET CASH REMITTANCE ELIGIBLE OWN FUNDS (EOF) +8.4 In Euro billion -0.3 -1.1 58.5 +0.2 57.4 P&C +5.1 L&S +4.1 -6.1 Holdings and other -0.8 -2.1 6.5 5.5 F
Slide 26: Continued profitable growth: Property and Casualty
Continued profitable growth Property and Casualty UNDERLYING EARNINGS PROPERTY AND CASUALTY • ca. +5% in Commercial lines including from In Euro billion ca. +5% selective growth in Mid-market and emerging risks Topline growth • ca. +4% in Retail mostly from pricing and good P&C Retail retention +4%
Slide 27: Continued profitable growth: Life and Health
Continued profitable growth Life and Health UNDERLYING EARNINGS LIFE AND HEALTH In Euro billion >3 % Growth in • In line with normalized CSM growth CSM release +4% - 6% UE CAGR 2023-2026E UK Health Recovery +6% Short-term insurance • Growth driven by Employee Benefits and Individual Health topline g
Slide 28: Continued profitable growth: Asset Management and Holdings
Continued profitable growth Asset Management and Holdings UNDERLYING EARNINGS UNDERLYING EARNINGS ASSET MANAGEMENT HOLDINGS In Euro billion In Euro billion ca.+7 % CAGR 0.4 2023-2026E -1.0 ~-1.2 FY23 FY26E FY23 FY26E • Continued positive momentum in third party net flows sustained by • Higher debt e
Slide 29: Ambitious financial targets
Ambitious financial targets UNLOCK THE FUTURE NEW CAPITAL TARGETS MANAGEMENT POLICY UNDERLYING EARNINGS PER SHARE1 6% to 8% CAGR 2023 – 2026E 75% total payout ratio2 + UNDERLYING RETURN ON EQUITY1 14% to 16% 2024E - 2026E 60% 15% dividend buybacks3 CUMULATIVE CASH REMITTANCE >€ 21bn 2024E - 2026E wi
Slide 30: Conclusion
4 Conclusion Thomas Buberl Group CEO 31 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 31: Strong performance in 2023, perfectly positioned to launch our new strategic plan
Strong Our 2023 financial results have been solid and demonstrated performance our commitment to the society and our employees. in 2023, perfectly positioned to Our strategic plan Driving Progress has been successfully launch our new completed. All four key financial targets have been achieved. stra
Slide 32: Q&A session
Q&A session 33 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 33: Thank you
Thank you 34 Full Year 2023 Earnings & Strategic Plan 2026 | February 22, 2024
Slide 34: AXA is a recognized sustainability leader
AXA is a recognized sustainability leader Score: 81/100 2023 score: AAA 2023 score: B In DJSI Europe & DJSI World indexes DJSI accounts for 10% of performance conditions of AXA’s shares for top management 2023 score: 68/100 Included in the Bloomberg Gender ESG Risk Rating: with a sector average scor
Slide 35: Scope
Scope France: includes insurance activities, banking activities and holdings. Europe: includes Switzerland (insurance activities), Germany (insurance activities and holding), Belgium (insurance activities and holding) and Luxembourg (insurance activities and holding), United Kingdom and Ireland (ins
Slide 36: Glossary (1/2)
Glossary (1/2) Asset Management net flows: Net inflows represent Inflows of client money less outflows of client money. Net inflows are used by the Management to measure the impact of sales efforts, product attractiveness (mainly dependent on performance and innovation), and the general market trend
Slide 37: Glossary (2/2)
Glossary (2/2) New Business Value (“NBV”): the value of newly issued contracts during the current year. It consists of the sum of (i) the New Business Contractual Service Margin, (ii) the present value of the future profits of Short-Term Business newly issued contracts during the period, carried by
Slide 38: 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. Change at constant FX. 2. Change at constant scope and FX. 3. FY23 UEPS +29% vs FY22 restated under IFRS17/9. Page 6 1.
Slide 39: Notes (2/2)
Notes (2/2) Changes at comparable basis are constant Forex, scope and methodology for activity indicators, and at constant Forex for earnings, unless otherwise specified. Page 26 1. Normalized capital generation refers to operating capital generation excluding operating variance. 2. Reflecting ordin