Slide 1: Full Year 2021 Earnings
Full Year 2021 Earnings Press conference February 24, 2022
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: Agenda
Agenda 1 Introduction Thomas Buberl, Group CEO 2 Business Performance Frédéric de Courtois, Group Deputy CEO 3 France Patrick Cohen, AXA France CEO 4 Financial Performance Alban de Mailly Nesle, Group CFO 5 Conclusion Thomas Buberl, Group CEO 3 Full Year 2021 Earnings | February 24, 2022
Slide 4: Introduction
1 Introduction Thomas Buberl Group CEO 4 Full Year 2021 Earnings | February 24, 2022
Slide 5: Success of the transformation undertaken in 2016
Success of the transformation undertaken in 2016 TRANSFORMATION PRIORITIES AXA BETWEEN 2016 AND 2021 TODAY • #2 largest European insurer • Geographic and operational simplification of the Group • #1 global commercial lines insurer • Shift of the Group's profile towards • International leader in heal
Slide 6: A transformation strategy that delivers excellent performance
A transformation strategy that delivers excellent performance CHIFFRE GROSS REVENUES RESULTAT UNDERLYING EARNINGS D’AFFAIRES OPERATIONNEL • Strong business growth throughout our €100bn €6.8bn products and solid operational performance across our markets +6% +61% vs. 2020 vs. 2020 +9% vs. rebased 202
Slide 7: Strong sales dynamic across all business lines
Strong sales dynamic across all business lines 2021 Gross revenues vs. 2020 Life & Savings Property & Casualty Health Asset Management +9% +3% +5% +20% €33.3bn €49.3bn €15.2bn €1.5bn 7 Full Year 2021 Earnings | February 24, 2022
Slide 8: Solid operational performance across all our markets
Solid operational performance across all our markets Underlying Earnings 2021 vs. 2020 at constant Forex EUROPE FRANCE ASIA GROUP €2.5bn €1.8bn €1.2bn TOTAL -4% +8% +1% 3.6 €6.8bn bn AXA IM AXA XL €0.3bn €1.2bn +61% vs. +25% €-1,4bn in 2020 8 Full Year 2021 Earnings | February 24, 2022
Slide 9: Continued and ambitious commitments for climate
Continued and ambitious commitments for climate Strengthen our leadership Tracking our impact through strong actions with the AXA for Progress Index • Tightening of exclusions in oil and gas • Reducing the carbon footprint of general fund to support the energy transition assets by 20% by 2025 • Impl
Slide 10: Financial performance at the service of all our stakeholders
Financial performance at the service of all our stakeholders CLIENTS EMPLOYEES • €50bn in claims compensated • 12,000 recruitments globally to bounce back after a loss • €6bn of salaries • €6.5bn in interest paid paid to our employees to remunerate savings ECONOMY SHAREHOLDING • €40bn invested in th
Slide 11: A culture dedicated to the well-being and commitment of our employees
A culture dedicated to the well-being and commitment of our employees Participation in strategic choices and sharing of group performance: employee share ownership plan every year since 1993 (Shareplan) Employee Net Promoter Score 36 pts Diversity and inclusion: significant progress in gender equali
Slide 12: A Driving Progress 2023 plan well underway
A Driving Progress 2023 plan well underway Priority actions Financial indicators • Develop health and protection +7% 2021 Underlying Earnings Positioned to be in the top of the target range2 of 3 to 7% between 2020 and 2023 • Simplify the customer experience per Share vs. 2020 rebased1 and continue
Slide 13: Business Performance
2 Business Performance Frédéric de Courtois Group Deputy CEO 13 Full Year 2021 Earnings | February 24, 2022
Slide 14: P&C Revenues: Favorable pricing momentum in Commercial lines
P&C Revenues I Favorable pricing momentum in Commercial lines In Euro billion GROSS REVENUES COMMERCIAL LINES PRICING1: +7% +3% +15% 48.7 49.3 +9% +3% +3% AXA XL AXA XL Re2 France Europe Commercial 31.7 +5% 32.7 Insurance2 PERSONAL LINES PRICING1: STABLE +0.2% +0.4% Personal 17.0 +1% 16.6 -0.8% FY20
Slide 15: P&C Profitability: Strong underwriting performance
P&C Profitability I Strong underwriting performance In Euro billion UNDERLYING EARNINGS ALL YEAR COMBINED RATIO +151% Covid-19 or +29% ex Covid in FY20 NatCat +862 +49 4,059 99.5% PYD -42 96.4% 3.1% 94.6% ex Covid +1,547 4.2% Underwriting Investment Tax, FX 5.7% result income and other 94.3% 92.0% 1
Slide 16: L&S Revenues: Growing across markets, with high quality mix
L&S Revenues I Growing across markets, with high quality mix In Euro billion GROSS REVENUES REVENUE BY GEOGRAPHY +17% +9% 33.3 -5% 31.5 +16% 15.3 9.7 7.0 +5% 15.2 France Europe Asia Protection L&S NET FLOWS: +2.4bn Unit-Linked +25% 7.4 +3.4 +2.1 +2.2 Capital light1 G/A +15% 7.9 -5.4 Traditional G/A
Slide 17: APE & NBV: Growing our highly profitable product mix
APE & NBV I Growing our highly profitable product mix In Euro billion APE1 NBV1 NBV MARGIN +13% +8% -1.9pts NBV 5.9 margin1 2.6 46.5% 2.5 43.9% 5.3 Protection and Health2 +10% 3.7 53% Unit-Linked +30% 1.0 40% Capital light G/A +13% 0.8 30% Traditional G/A +3% 0.4 -1% FY20 FY21 FY20 FY21 FY20 FY21 17
Slide 18: L&S Profitability: Resilient investment margin, higher Unit-Linked fees
L&S Profitability I Resilient investment margin, higher Unit-Linked fees In Euro million UNDERLYING EARNINGS NET INVESTMENT MARGIN +3% or +5% at constant scope1 +114 +87 2,338 2,380 67bps 66bps -46 -113 Above Technical Investment Fees and Tax, FX guidance of margin margin revenues less and other3 55
Slide 19: Health: Continued profitable growth
Health I Continued profitable growth GROSS REVENUE COMBINED RATIO UNDERLYING EARNINGS in Euro billion in Euro million +5% +0.4pt +2% 15.2 94.5% 95.1% 693 684 14.7 Loss +1.0pt Expense -0.6pt FY20 FY21 FY20 FY21 FY20 FY21 19 Full Year 2021 Earnings | February 24, 2022
Slide 20: Asset Management: Higher AUM with favorable business mix
Asset Management I Higher AUM with favorable business mix In Euro billion AVERAGE AUM NET INFLOWS BY PLATFORM +5% +15.2 Including 866 -4bn 822 from HK reinsurance +12% +2.0 JVs -5.0 Alts +9% Alts Core JVs NET INFLOWS BY CLIENT Core +4% +11.6 -1.4 +2.0 FY20 FY21 Third party Main fund JVs 20 Full Year
Slide 21: Asset Management: Earnings growth from margin expansion
Asset Management I Earnings Growth from margin expansion In Euro million GROSS REVENUES COST INCOME RATIO UNDERLYING EARNINGS +20% +0.7bp -3.8pts +25% mgt fee bps 1,523 71.9% 348 68.1% 1,269 279 FY20 FY21 FY20 FY21 FY20 FY21 21 Full Year 2021 Earnings | February 24, 2022
Slide 22: Asset Management: Leading European franchise on Alternative assets
Asset Management I Leading European franchise on Alternative assets AXA IM ALTS +12% CAGR 154 168 • Real Assets #1 in Europe, 106 115 130 #5 worldwide1 Average AUM € bn • €54bn cumulative NNM 2017 2018 2019 2020 2021 since 2017 • High margin business New Net Money €8bn €6bn €12bn €12bn €15bn Strong
Slide 23: France
3 France Patrick Cohen CEO of AXA France 23 Full Year 2021 Earnings | February 24, 2022
Slide 24: Excellent performance in 2021
Excellent performance in 2021 GROSS REVENUE HIGHLIGHTS UNDERLYING EARNINGS In Euro billion €28.3bn 100k NNM on personal P&C 1.7 +8% 1.8 +13% vs. 2020 +7pts Increase of customer satisfaction (NPS) on all Lines of Business P&C +7% +11% Gross revenue growth on commercial lines Health +10% 56% Rate Unit
Slide 25: Our priorities for sustainable growth
Our priorities for sustainable growth CUSTOMER EXPERIENCE TECHNOLOGY & AGILITY SOCIETY COMMITMENTS Digitalization of the customer Automation and AI at scale Investments & green offers journey 70% of underwriting management process 10Bn of green Investments, > 80% of retail digitalized seemless >90%
Slide 26: Financial Performance
4 Financial Performance Alban de Mailly Nesle Group CFO 26 Full Year 2021 Earnings | February 24, 2022
Slide 27: Underlying earnings: Strong FY21 performance
Underlying earnings I Strong FY21 performance In Euro million +61% +9% 6,762 vs FY20 FY20 FY21 Change rebased1 +29% Property & Casualty 1,644 4,059 +151% ex. Covid 4,264 Life & Savings 2,338 2,380 +3% Health 693 684 +2% Asset Management 279 348 +25% Holdings & other -690 -710 - Underlying earnings 4
Slide 28: Net income: Strong growth from UE and favorable market conditions
Net income I Strong growth from UE and favorable market conditions In Euro million +135% Underlying earnings 6,762 7,294 Gains/losses on financial assets +1,533 o/w Net realized capital gains +405 o/w Change in fair value and Forex 1 +1,128 Exceptional and discontinued operations -456 3,164 Integrat
Slide 29: Shareholders' equity: ROE at 14.7%, at high-end of target range
Shareholders’ equity I ROE at 14.7%, at high-end of the target range In Euro billion 71.6 71.1 FY20 Shareholders' equity 71.6 Change in net unrealized capital gains1 -6.1 Net income for the period +7.3 Dividend (paid in May 2021) -3.4 Share buyback -0.9 Change in pension benefits +0.6 FY20 FY21 Fore
Slide 30: Solvency II: Ratio at 217%, up 17pts vs FY20
Solvency II I Ratio at 217%, up 17pts vs FY20 In Euro billion SOLVENCY II RATIO1 KEY SENSITIVITIES 200% 217% Ratio as of December 31, 2021 217% Interest rate +50bps +9pts 62.0 55.0 Interest rate -50bps -14pts2 Corporate spreads +50bps -1pt Euro Sovereign spreads +50bps3 -11pts 27.5 28.6 Credit migra
Slide 31: Cash at Holding: Strong cash position, well above target range
Cash at Holding I Strong cash position, well above target range In Euro billion MAIN DRIVERS OF FY21 EVOLUTION +0.3 FY20 4.2 4.5 4.2 Net cash remittance from subsidiaries +4.4 Dividend paid in 2021 -3.4 Share buyback -0.9 Holding costs and interests -1.0 Debt issuance +0.9 Disposals +1.4 Other1 -1.1
Slide 32: Financial debt: Gearing in line with guidance
Financial debt I Gearing in line with guidance In Euro billion GROSS FINANCIAL DEBT DEBT GEARING 26.8% 26.4% 18.1 Guidance 16.6 25%-28% FY20 FY21 DEBT TRANSACTIONS IN 2022 • Redemption of $850m Tier 1 debt (January 17, 2022) • Issuance of €1.25bn Tier 2 debt (January 6, 2022) FY20 FY21 32 Full Year
Slide 33: Investments: Resilient yields supported by Alternatives
Investments I Resilient yields supported by Alternatives FY21 FIXED INCOME REINVESTMENT YIELD P&C YIELD2 L&S INVESTMENT MARGIN3 2.4% 2.6% 2.6% 67bps 66bps 1.4% 1.0% Core Alternative1 FY21 FY20 FY21 FY20 FY21 Government bonds Average rating: AA Guidance Guidance Corporate bonds Average rating: A 10-2
Slide 34: Conclusion
5 Conclusion Thomas Buberl Group CEO 34 Full Year 2021 Earnings | February 24, 2022
Slide 35: Excellent performance across the Group
Excellent performance across the Group Strong business growth throughout our products and solid operational performance across our markets Successful transformation of AXA XL, now fully operational Positioned to deliver earnings per share at the top of our target range and exceed cash flow target by
Slide 36: Q&A session
Q&A session 36 Full Year 2021 Earnings | February 24, 2022
Slide 37: AXA is a recognized sustainability leader
AXA is a recognized sustainability leader 2021: 4th place Sector Leader Score: 87/100 2021 score: AAA 2021 score: A- 1st / 52 insurance companies in 2021 In DJSI Europe & DJSI World indexes Included in Euronext Vigeo indices DJSI accounts for 10% of performance conditions of AXA’s shares for top man
Slide 38: Thank you
Thank you 38 Full Year 2021 Earnings | February 24, 2022
Slide 39: Scope and definitions
Scope and definitions SCOPE France: includes insurance activities, banking activities and holdings in France. Europe: includes Switzerland (insurance activities), Germany (insurance activities, holding, and banking activities until its disposal on December 31, 2020), Belgium (insurance activities an
Slide 40: Notes (1/2)
Notes (1/2) Change at constant scope and FX for revenues and at constant FX for UE. Page 6 1. “FY20 underlying earnings rebased” includes actual underlying earnings restating for “Covid-19 claims in FY20 ”and natural catastrophes in excess of normalized in FY20. The AXA Group normalized level of Nat
Slide 41: Notes (2/2)
Notes (2/2) Change at constant scope and FX for revenues and at constant FX for UE. Page 22 1. Source: INREV Fund Manager Survey May 2021. 2. Gross of inter company elimination Page 27 1. “FY20 underlying earnings rebased” includes actual underlying earnings restating for “Covid-19 claims in FY20 ”a