Slide 1: Half Year 2020 Appendices
Half Year 2020 Appendices August 6, 2020
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: Table of contents
Table of contents 1. GROUP OVERVIEW B.04 2. PROPERTY & CASUALTY B.13 3. HEALTH B.22 4. LIFE & SAVINGS B.26 5. BALANCE SHEET B.33 6. CORPORATE RESPONSIBILITY B.51 “Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lo
Slide 4: Group overview
B1 Group overview
Slide 5: Profile of revenues and underlying earnings by line of business
Profile of revenues and underlying earnings at 1H20 by line of business 1H20 figures Revenues Underlying earnings1,2 Asset Management Asset Management & Banking 2% & Banking 4% L&S 33% L&S 30% P&C 54% P&C 54% Health 15% Health 9% 1. The breakdown by line of business is based on underlying earnings e
Slide 6: AXA's rankings
AXA’s rankings FY19 figures1 P&C L&S P&C L&S France #2 #3 Indonesia #4 High potentials Thailand #28 #4 Europe Switzerland #1 #4 Philippines #5 Germany #5 #8 China #18 #11 Belgium #1 #6 Mexico #4 #10 Current engines UK #2 Brazil #9 Ireland #1 Spain #5 #11 Italy #5 #6 Asia Hong Kong #1 #7 Japan #13 AX
Slide 7: Profile of revenues and underlying earnings by geography
Profile of revenues and underlying earnings at 1H20 by geography 1H20 figures Revenues by geography Underlying earnings by geography2,3 Transversal1 3% Transversal1 4% AXA XL France 24% AXA XL France 24% 20% 13% Asia & International Asia & International 24% 17% Europe 36% Europe 35% 1. Including AXA
Slide 8: Group | Topline overview
Group | Topline overview P&C revenues1 Health revenues L&S revenues In Euro million In Euro million In Euro million -1% +9% -8% 27,963 28,083 7,858 17,658 7,230 15,597 Commercial 3,753 Protection 8,041 18,400 stable 18,420 Group 3,415 +11% +1% lines 7,870 G/A Savings 6,493 -25% 4,585 Personal Indivi
Slide 9: Group | Net flows
Group | Net flows 1H20 figures L&S: Euro +1.4 billion Health: Euro +2.0 billion P&C NNC: -19k contracts in Euro billion in Euro billion Personal lines net new contracts, in thousands of contracts +1.4 +0.8 +0.6 +0.6 +23 +0.5 +8 -0.4 France Europe Asia & France Europe Asia & International -51 Interna
Slide 10: Group | Profitability analysis
Group | Profitability analysis P&C combined ratio Health combined ratio Protection combined ratio +6.5 pts Or 95.1% 1H20 +1.5 pts excl. Covid-191 101.7% +0.2 pt (-0.1pt vs. 1H19) 93.2% 94.6% 93.9% 94.0% 6.5% Covid-19 3.4% Loss ratio 75.2% 75.7% 95.1% Loss ratio2 77.2% 78.5% Nat Cat 2.7% 66.7% Loss r
Slide 11: Group | Underlying earnings by geography
Group | Underlying earnings by geography 1H20 figures Change 1H19 1H20 Change excl. Covid1 France 873 753 -14% +2% Europe 1,324 1,270 -6% -3% AXA XL 502 -843 - +1% Asia & International 859 936 +7% +3% Transversal & Central Holdings -221 -230 -5% +14% United States 283 - - Underlying earnings 3,620 1
Slide 12: Group | Underlying earnings margin analysis
Group | Group underlying earnings margin analysis In Euro million 1H20 Change 1H20 Change 1H20 Change Investment margin 2,495 0% Fees & revenues 3,135 +4% Net technical margin 7,471 -18% Significantly impacted by P&C claims + + + in the context of Covid-19 - Expenses 10,188 +2% Acquisition expenses
Slide 13: Property & Casualty
B2 Property & Casualty
Slide 14: Property & Casualty | Distribution and product mix
Property & Casualty | Distribution and product mix 1H20 revenues Revenues by channel Revenues by product P&C Personal Other 15%1 Non-Motor 12% P&C Commercial Motor 7% Agents & salaried 25% Direct 6% P&C Personal Motor Partnerships 3% 22% Euro 28.1 billion Euro 28.1 billion Brokers 51% P&C Commercial
Slide 15: Property & Casualty | Gross revenues and market pricing trends by geography
Property & Casualty | Gross revenues and market pricing trends by geography Total Commercial Lines Personal Lines Gross revenues In Euro million Price Price 1H20 Growth 1H20 effect Growth 1H20 effect Growth 2020 Market pricing trends Price stability expected in Commercial Lines in the context of Cov
Slide 16: Property & Casualty | Profitability ratios by geography
Property & Casualty | Profitability ratios by geography o/w loss ratio o/w expense ratio P&C profitability ratios All Year Combined ratios 1 1 excl. Covid-19 excl. Covid-19 1 Excluding Covid-19 1H19 1H20 1H20 Change 1H20 Change 1H20 Change France 90.8% 94.1% 89.6% -1.2 pts 62.2% -1.7 pts 27.4% +0.4
Slide 17: Property & Casualty | AXA XL topline overview
Property & Casualty | AXA XL topline overview P&C Insurance revenues P&C Reinsurance revenues In Euro billion In Euro billion 1 Change excl. Covid-19 1 Change excl. Covid-19 1H20 Change Pricing 1H20 Change Pricing exposure adjustments exposure adjustments Specialty 2.0 -5% +11% +7% Property Cat 0.6
Slide 18: Property & Casualty | Focus on AXA XL net reserves
Property & Casualty | Focus on AXA XL net reserves AXA XL premiums and net reserves AXA XL P&C reserving ratio1 In USD billion (Net technical reserve/Net earned premiums) GEP NEP Net reserves Net reserves ratio FY17 FY18 FY19 1H20 FY17 FY18 FY19 1H20 FY17 FY18 FY19 1H20 FY17 FY18 FY19 1H20 Insurance
Slide 19: Property & Casualty | Underlying earnings margin analysis
Property & Casualty | Underlying earnings margin analysis In Euro million 1H20 Change 1H20 Change Investment income 1,433 0% Technical margin 6,289 n.a. Average assets1 105,946 +4% Gross earned premium 24,389 +2% Average yield1,2 2.7% -9 bps AY Loss ratio 74.2% +6.5 pts CY Loss ratio 76.4% +7.0 pts
Slide 20: Property & Casualty | Details on P&C current year loss ratio
Property & Casualty | Details on P&C current year loss ratio Personal Motor Personal Non-Motor 73.4% +1.4pts +0.2pt 63.2% +2.1pts 65.5% 60.3% -0.8pt -6.9pts -0.1pt -0.1pt -0.9pt 1H19 Covid-19 Nat Cat Price effect Freq, Sev 1H20 1H19 Covid-19 Nat Cat Price effect Freq, Sev 1H20 & other & other Total
Slide 21: Property & Casualty | Focus on P&C reserves
Property & Casualty | Focus on P&C reserves Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 2.0% 1.7% 2.1% 1.8% 1.8% 1.4% 1.9% 1.3% 2.1% 2.1% 1.7% 2.2% 2.3% 1.4% 1.2% 1.2% 1.3% 0.6% 0.8% 1.2% FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H
Slide 22: Health
B3 Health
Slide 23: Health | Gross revenues by geography
Health | Gross revenues by geography Health revenues In Euro million +9% 7,858 Health Gross revenues Total Individual Group 7,230 Price Price Price 1H20 Change 1H20 Change 1H20 Change effect effect effect 3,753 Group 3,415 France 2,547 +1.7% +9.9% 348 +1.7% +5.8% 2,199 +1.7% +10.6% Europe 3,045 +4.8
Slide 24: Health | Combined ratio by geography
Health | Combined ratio by geography Health profitability ratios Combined ratios o/w loss ratio o/w expense ratio 1H19 1H20 Change 1H20 Change 1H20 Change excl. EQH 1 1 France 97.7% 97.1% -0.6 pt 82.8% -0.7 pt 14.3% +0.1 pt Europe 95.4% 95.9% +0.5 pt 85.2% +0.8 pt 10.7% -0.4 pt Asia & International
Slide 25: Health | Underlying earnings margin analysis
Health | Underlying earnings margin analysis In Euro million 1H20 Change 1H20 Change 1H20 Change Investment income 77 +18% Fees & revenues 847 +3% 1 769 +11% Technical margin Gross earned premiums: 7,514 (+9%) AY Loss ratio: 78.5% (+0.4pt1) + + + - Expenses1,2 1,165 +7% Acquisition expenses1 658 +10
Slide 26: Life & Savings
B4 Life & Savings
Slide 27: Annual Premium Equivalent | Distribution and product mix
Annual Premium Equivalent | Distribution and product mix 1H20 figures1 APE by channel APE by product Other 10% Funds & Other 1% Unit-Linked 13% Partnerships 14% Agents & salaried 35% G/A Savings 18% Euro 2.8 billion Euro 2.8 billion Protection 49% Health 18% Brokers 41% 1. Includes Life-like Health
Slide 28: Life & Savings | Gross revenues by geography
Life & Savings | Gross revenues by geography L&S revenues In Euro million -8% 17,658 15,597 Life & Savings Total Protection G/A Savings Unit-Linked Gross revenues Protection 8,041 1H20 Change 1H20 Change 1H20 Change 1H20 Change 7,870 France 6,168 -13.5% 2,087 -3.6% 2,155 -34.2% 1,925 +16.4% G/A Savi
Slide 29: Life & Savings | Protection combined ratios by geography
Life & Savings | Protection combined ratios by geography Protection profitability ratios Combined ratios o/w loss ratio o/w expense ratio 1H19 1H20 Change 1H20 Change 1H20 Change (excl. EQH) France 97.8% 102.3% +4.5 pts 76.5% +4.8 pts 25.9% -0.3 pt Europe 95.2% 94.7% -0.4 pt 79.5% -3.1 pts 15.2% +2.
Slide 30: Life & Savings | Asset & Liability management (1/2)
Life & Savings | Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin1 Average Spread above 67 bps 66 bps 1H201 Yield on assets guaranteed rates guarantee Inforce 2.8% 1.5% +130bps New business 1.5% 0.2% +130bps 1H19 1H20 (excl. EQH) • Significant buffer to cover gu
Slide 31: Life & Savings | Asset & Liability management (2/2)
Life & Savings | Asset & Liability management (2/2) France Germany Switzerland Belgium AXA MPS 290 bps 40 bps 150 bps 40bps 120 bps Inforce 3.4% 3.0% 2.6% 1.7% 3.9% 1.3% 2.4% 2.1% 0.5% 0.9% business 100 bps 130 bps New 90 bps 30 bps 80 bps 1.9% 1.6% 1.6% 0.9% 0.9% 0.5% 0.2% 0.8% 0.2% 0.0% 1H20 Yield
Slide 32: Life & Savings | Underlying earnings margin analysis
Life & Savings | Underlying earnings margin analysis In Euro million 1H20 Change 1H20 Change 1H20 Change Investment margin 985 -1% Fees & revenues 2,287 +5% Net technical margin 412 -34% Average G/A reserves 287,387 +1% o/w Unit-Linked management fees 480 +6% Investment margin (bps) 69 bps -1 bp Ave
Slide 33: Balance Sheet
B5 Balance Sheet
Slide 34: Balance sheet
Balance sheet 1. Investment portfolio B.35 I. General Account invested assets B.36 II. Government and corporate bonds by rating B.37 III. Government Bonds and related B.38 IV. Corporate Bonds B.39 V. Asset Backed Securities B.40 VI. Listed Equity B.41 VII. Real Estate B.42 VIII. Hedge Funds B.43 IX.
Slide 35: Investment portfolio
Investment portfolio 1H20 Total General Account invested assets Resilient reinvestment yield in Duration gap at ca. 0.4 year the context of low rates Other 1 (6%) 43% Govies & related 3% (AA average rating) Listed Equities 4% Alternatives Euro ▶ Euro 25 billion fixed income invested at 1.5% 6% 573 ▪
Slide 36: General Account Invested Assets
General Account Invested Assets Invested assets (100%) FY19 % 1H20 % In Euro billion Changes in asset mix Fixed income 456 81% 462 81% o/w Govies and related 241 43% 246 43% Government bonds: higher asset value from the decrease in interest o/w Corporate bonds 169 30% 169 29% rates o/w Asset backed
Slide 37: Government and corporate bonds by rating
Government and corporate bonds by rating Government and related bonds Corporate bonds 1 Below investment 11% Non rated (2%) Below Investment Grade (0%) grade (7%) 15% AAA BBB 20% AAA Euro 246 Euro 169 11% AA 21% billion 37% billion BBB A 44% AA 30% A Average rating maintained in the AA range Average
Slide 38: Government bonds and related
Government bonds and related Breakdown by asset domiciliation Gross1 unrealized capital gains and losses In Euro billion Other 9% 49.2 Netherlands 2% 45.2 France 23% Thailand 2% Austria 3% US 5% Spain 5% Euro 246 billion Supranational Institutions 6% Japan 14% Switzerland 6% Belgium 8% Italy 8% FY19
Slide 39: Corporate bonds
Corporate bonds Breakdown by industry Gross1 unrealized capital gains and losses In Euro billion Basic Materials 3% Technology 3% Others 4% 10.3 Consumer, Cyclical 5% 9.2 Energy 5% Banks 37% Financial 6% Euro 169 billion Communications 7% Utilities 8% FY19 1H20 Industrial Consumer, Non-cyclical 9% 1
Slide 40: Asset backed securities
Asset backed securities Breakdown by asset type1 Breakdown by rating Below investment Grade 1% Non rated/Equity 4% BBB 0% CLO 95% A 11% US Subprime, Alt-A & NC RMBS 1% Prime RMBS 1% Commercial MBS 1% Euro 16 billion Euro 16 billion CDO 1% AA 23% Consumer ABS2 1% AAA 61% Other ABS 0% As of June 30, 2
Slide 41: Listed equity portfolio overview
Listed equity portfolio overview Breakdown by asset domiciliation Gross1 unrealized capital gains and losses In Euro billion Rest of the World 17% US 27% 5.6 Other European 4.0 Countries 10% Euro 19 billion Belgium 4% Netherlands 4% Germany France 4% FY19 1H20 21% Switzerland 6% Japan 6% As of June
Slide 42: Real estate investments
Real estate investments Breakdown by asset domiciliation Breakdown by type and geography Japan 3% Other 2% United States 4% United Kingdom 5% France 31% Belgium 9% France Switzerland Germany Belgium Other Total Office 10% 8% 5% 6% 12% 40% Residential 4% 7% 1% 0% 6% 17% Market value1 Retail 11% 0% 2%
Slide 43: Hedge fund investments
Hedge fund investments AXA portfolio return drivers Portfolio diversification Alternative Credit : 12 managers Multi-strategy Relative value credit 10% Program 27% Deep value credit 15% Market value Real asset cash flow 6% Short dated carry 69% Euro 9 billion Alternative credit Program 73% Multi-Str
Slide 44: Private equity investments
Private equity investments Diversified portfolio built over the long run Breakdown by expertise Venture 5% Other Mezzanine 10% Japan 8% 3% Infrastructure Buy-out 27% 58% US Market value 27% Euro 11 billion Diversified portfolio built over the long run Europe Direct 62% 36% Funds of Funds 64% As of J
Slide 45: Mortgage loans
Mortgage loans Very secured portfolio: 42% 27% 1H20 market value by entity1 Switzerland Germany Belgium 1H20 default rate 0.28% 6% 1H20 loan to value 60% Residential Residential Other 70% 9% 86% 30% Commercial Commercial 14% Switzerland France 42% 16% 6% 16% Market value2 France Belgium Euro 25 bill
Slide 46: Focus on net unrealized capital gains
Focus on net unrealized capital gains Balance sheet net unrealized capital gains1 Off balance sheet net unrealized capital gains1 In Euro billion In Euro billion 19.3 19.7 3.1 2.1 3.3 5.6 5.7 2.7 Equities & other 2 Corporate bonds 13.4 14.3 Government bonds and related FY19 1H20 FY19 1H20 Net unreal
Slide 47: Gross financial debt – Long-term maturities
Gross financial debt – Long-term maturities Gross financial debt Contractual maturity breakdown In Euro billion In Euro billion 0.3 0.9 Debt 28.8% 27.6% 2.9 gearing 7.2 19.1 0.1 0.1 0.5 3.7 17.6 0.4 0.5 1.1 2020 2021-2025 2026-2040 > 2040 Undated 6.7 6.6 Economic maturity breakdown In Euro billion 0
Slide 48: Adjusted ROE
Adjusted ROE In Euro million 1H19 1H20 Adjusted earnings 4,006 1,984 1 Interest charges on undated debt -136 -90 Average adjusted shareholders’ equity2 42,198 43,180 Adjusted ROE (%) 18.3% 8.8% 1. Including adjustment to reflect net financial charges related to undated subordinated debt (recorded th
Slide 49: Solvency II ratio
Solvency II ratio Solvency II ratio1 Key sensitivities In Euro billion 198% 180% Ratio as of June 30, 2020 180% 59.4 Interest rate +50bps +10 pts 53.9 Interest rate -50bps -14 pts 30.0 29.9 Corporate spreads +50bps 0 pt Available capital Euro Sovereign spreads +50bps3 -10 pts Required capital Credit
Slide 50: Solvency II required capital
Solvency II required capital Split by Risk, Geography & Business Required capital by risk Required capital by business Required capital by geography 1H20 FY19 FY19 UK Transversal & Operational Asset Management & Banking Belgium Central Holdings Counterparty 5% Asset Management, 4% 6% 4% 7% Holdings
Slide 51: Corporate Responsibility
B6 Corporate Responsibility
Slide 52: AXA's active leadership in fighting climate change and protecting societies
AXA’s active leadership in fighting climate change and protecting societies As a global As a global As a coalition investor insurer builder TCFD and Net Zero Euro 24 billion Coal underwriting Asset Owner Green investment target doubled policy further Alliance strengthened Sharing expertise on metric
Slide 53: Covid-19: responding to a health and economic crisis on an unprecedented scale
Covid-19: responding to a health and economic crisis on an unprecedented scale Supporting Helping business Creating a new research and and society protection healthcare recover Euro 12 million Euro 500 million Supporting research and Invested in SMEs and mid-cap healthcare enterprises1 Co-building a
Slide 54: AXA's CR strategy addresses societal and sustainability challenges
AXA’s CR strategy addresses societal and sustainability challenges 3 main priorities for positive impact aligned with our business activities… Climate & Health and Social inequalities & biodiversity disease prevention inclusion ▶ “Warming potential” of investments ▶ Continue to deploy our dedicated
Slide 55: SRI / ESG market recognizes AXA as a sustainability leader
SRI / ESG market recognizes AXA as a sustainability leader 2019: Sector Leader 1st / 49 insurance companies “A+” 2019 UN PRI Scorecard Score: A- (focus on Responsible Investment) Level Score: « Leadership » Included in Euronext Vigeo indices 2019: 3rd place Included in the Score: 83/100 Score: AAA F