Slide 1: Full Year 2020 Earnings presentation
Full Year 2020 Earnings presentation February 25, 2021
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. FY20 Highlights A.04 Thomas Buberl, Group CEO 2. FY20 Financial Performance A.12 Etienne Bouas-Laurent, Group CFO 3. Conclusion A.29 Thomas Buberl, Group CEO A3 Full Year 2020 Earnings | February 25, 2021
Slide 4: FY20 Highlights
FY20 Earnings February 25, 2021 1 FY20 Highlights Thomas Buberl, Group CEO
Slide 5: Full Year 2020 Key highlights
Full Year 2020 | Key highlights €97bn 200% €1.43 €4.3bn Revenues Solvency II ratio Proposed DPS 2 2020 reported UE Good business Very strong Attractive Confident momentum balance sheet Dividend earnings outlook Preferred segments1 AXA XL integrated in In line with FY19 +3% to +7% UEPS CAGR +5% in 4Q
Slide 6: AXA actively contributing to address societal challenges during Covid-19
AXA actively contributing to address societal challenges during Covid-19 Protecting our clients and employees Supporting economic recovery Claims and solidarity measures Providing capital to SMEs €1.5bn claims1 expected to be paid €700m investment in SMEs in France3 Employee well-being Investing in
Slide 7: AXA enhancing the quality of its franchise
AXA enhancing the quality of its franchise Distributor proximity Employee engagement Client satisfaction +24pts +14pts +19pts 91% 35 94% 21 67% 75% FY19 FY20 FY19 FY20 FY19 FY20 % of agents using digital CRM 1 Employee-NPS2 NPS at or above market average4 (Global High Performing benchmark: 233) A7 F
Slide 8: AXA seizing opportunities from excellent business trends
AXA seizing opportunities from excellent business trends Preferred segments P&C profitability L&S business mix Revenue growth Improved P&C CY CoR1 Continued shift in L&S accelerated in 4Q20 (ex Covid-19 & Cats2) net flows in 2020 (€bn) +5% 94.7% +5.0 UL 94.2% +3% PR 31 G/A 3Q20 4Q20 FY19 FY20 -3.4 A
Slide 9: AXA XL benefiting from higher pricing and disciplined management
AXA XL benefiting from higher pricing and disciplined management Continued strong Confidence 2021 UE3 target pricing momentum on reserves reaffirmed +22% +20% ▶ Reserve review at FY20 Excess reserves (€0.2bn) ▶ Cautious approach on Covid €1.2bn 65% IBNR at FY20 (with higher Cat load) ▶ Adverse Devel
Slide 10: AXA performing well across other geographies
AXA performing well across other geographies In Euro billion Resilient earnings in Pivoting to Health in Accelerating in France and Europe Asia and International Alternatives stable +10% +14% 4.3 4.3 4.0 159 3.7 139 FY19 FY20 FY19 FY20 FY19 FY20 Underlying earnings Health revenues Alternative AuM1 i
Slide 11: Confident outlook for 2021 and beyond
Confident outlook for 2021 and beyond AXA XL turnaround in a +3% to +7% favorable market context UEPS1 CAGR 2 6.3 2020 rebased – 2023E 0.5 1.5 France & Europe geared for sustained delivery 4.3 Growth in Asia, FY20 reported UE International and AXA IM FY20 UE 2023E Add back Covid-19 rebased and exces
Slide 12: Financial performance
FY20 Earnings February 25, 2021 2 Financial performance Etienne Bouas-Laurent, Group CFO
Slide 13: Gross revenues
Gross revenues In Euro billion Quarterly revenue trends -1% 103.5 +4% EQH 1 96.7 +1% Total -1% revenues -10% 1Q20 2Q20 3Q20 4Q20 +5% +5% Preferred +3% segments revenues -3% (P&C Commercial, FY19 FY20 Health, Protection) 1Q20 2Q20 3Q20 4Q20 A13 Full Year 2020 Earnings | February 25, 2021 All notes ar
Slide 14: Underlying earnings
Underlying earnings In Euro billion Underlying earnings by business line3 In Euro million -34% 6.5 EQH Excess Cats2: -0.2 -0.5 in FY20 FY19 FY20 Change -0.3 in FY19 Property & Casualty 3,341 1,644 -51% -1.5 Life & Savings 2,508 2,338 -7% 4.3 Health 704 693 -1% Asset Management 264 279 +6% Holdings &
Slide 15: Property & Casualty | Revenues
Property & Casualty | Revenues In Euro billion Gross revenues Price increases in Commercial Lines +1% 22% 19% 20% 48.8 48.7 10% AXA XL Insurance1 Commercial 32.0 +2% 31.7 1Q20 2Q20 3Q20 4Q20 9% 6% Personal 16.7 -1% 17.0 AXA XL Reinsurance1 1 Jan 2020 1 Jan 2021 FY19 FY20 renewals renewals A15 Full Y
Slide 16: Property & Casualty | Underlying earnings and profitability
Property & Casualty | Underlying earnings and profitability In Euro billion Underlying earnings Combined ratio -51% 99.5% 3.3 96.4% 3.1% 96.4% -0.2 ex Covid-191 4.0% 4.2% -1.5 CY ex Covid-191 94.7% 94.2% & Cats -0.1 +0.3 -0.2 1.6 Covid-191 & Current year PYD Investment higher Cats Technical Income -
Slide 17: Property & Casualty | Covid-19 impacts confirmed at €1.5bn
Property & Casualty | Covid-19 impacts confirmed at €1.5bn1 In Euro billion Post tax and net of reinsurance +0.8 FR/EU ▶ Neutral impact from lockdown in 2H20, with FR AXA XL -0.2 higher impacts in Commercial lines offset by AXA XL AXA XL frequency benefits in Retail lines -0.5 -0.6 FR/EU ▶ Revision
Slide 18: Property & Casualty | AXA XL underlying earnings
Property & Casualty | AXA XL underlying earnings In Euro billion 2020 UE normalised 2021 UE target walk -0.2 +0.5 -0.1 1.2 1.0 US riots 0.1 Underwriting More prudent Investment Excess 0.5 & pricing Cat load income Cats1 (net of claims trend) (ca. 6% load) FY20 FY21E normalised Covid-192 1.7 Euro 1.2
Slide 19: Life & Savings | Revenues and net flows
Life & Savings | Revenues and net flows In Euro billion Gross revenues -6% 38.3 EQH Net flows 31.5 +1.6 +3.3 ▶ Protection ▶ Unit-Linked +1.7 ▶ G/A Savings -3.4 FY19 FY20 A19 Full Year 2020 Earnings | February 25, 2021 Back to agenda Change at constant scope and FX
Slide 20: Life & Savings | Underlying earnings
Life & Savings | Underlying earnings In Euro million -7% 2,508 11 77 2,338 -241 -17 ▶ Lower technical margin mostly in 1H20, including extended disability covers, lower annuities discount rate, and lower surrender benefits ▶ Stable investment margin with lower yields offset by lower crediting rates
Slide 21: Health | Revenues and Underlying earnings
Health | Revenues and Underlying earnings Revenues in Euro billion Underlying earnings in Euro million Gross revenues Combined ratio Underlying earnings Individual / Group Loss ratio / Expense ratio +6% +0.5pt -1% 14.7 94.1% 94.5% 704 693 14.0 +7% +0.7pt +6% -0.2pt FY19 FY20 FY19 FY20 FY19 FY20 (exc
Slide 22: Asset Management | Revenues and Underlying earnings
Asset Management | Revenues and Underlying earnings Assets under Management in Euro billion Revenues and underlying earnings in Euro million Assets under Management Gross revenues Underlying earnings +7% +4% +6% 858 1,225 1,269 279 801 264 Alts +14% FY19 FY20 FY19 FY20 FY19 FY20 (excl. EQH) (excl. E
Slide 23: Net income
Net income In Euro million Details of FY20 net income -18% 3,857 Underlying earnings 4,264 3,164 Net realized capital gains 337 1 Gains/losses on economic hedges -129 Change in fair value of AFS P&L assets -264 Exceptional and discontinued operations -487 Integration and restructuring costs -389 Goo
Slide 24: Shareholders' equity
Shareholders’ equity In Euro billion 69.9 71.6 FY19 Shareholders' equity 69.9 Change in net unrealized capital gains1 +3.5 Net income for the period +3.2 Dividend (paid in July 20202) -1.7 Change in pension benefits -0.2 Forex and other -3.0 FY20 Shareholders' equity 71.6 FY19 FY20 A24 Full Year 202
Slide 25: Solvency II ratio at 200%
Solvency II ratio at 200% FY20: Solvency II ratio 1 roll-forward Key sensitivities 9M20 Solvency II ratio 180% Operating return +6 pts Ratio as of December 31, 2020 200% Dividend accrual -3 pts Interest rate +50bps +10 pts Market impact excl. Forex +1 pt Interest rate -50bps -15 pts Corporate spread
Slide 26: Assets | Portfolio management and investment yields
Assets | Portfolio management and investment yields Stable mix of high quality assets FY20 portfolio yield1 FY20 Total General Account invested assets -17 bps Governement bonds (43%) 2.8% 2.7% Corporate bonds (28%) Other Fixed Income (9%) Euro Real Estate (6%) 572 billion FY19 FY20 Listed Equities (
Slide 27: Cash at Holding
Cash at Holding In Euro billion Main drivers of FY20 evolution 4.2 Net cash remittance from subsidiaries +4.8 3.0 Dividend paid in 2020 -1.7 Holding costs and interests -1.0 Disposal of Central and Eastern Europe +1.0 External debt repayments -1.7 Cash buffer rebuild at entities -1.4 Other 1 +1.2 FY
Slide 28: Financial debt
Financial debt In Euro billion Gross financial debt Debt gearing1 19.1 -2.0pts 28.8% 16.6 26.8% 25% - 28% target by 2020 FY19 FY20 FY19 FY20 A28 Full Year 2020 Earnings | February 25, 2021 All notes are on pages 35, 36, 37 and 38 Back to agenda
Slide 29: Conclusion
FY20 Earnings February 25, 2021 3 Conclusion Thomas Buberl, Group CEO
Slide 30: Full Year 2020 Key highlights
Full Year 2020 | Key highlights €97bn 200% €1.43 €4.3bn Revenues Solvency II ratio Proposed DPS 1 2020 reported UE Good business Very strong Attractive Confident momentum balance sheet Dividend earnings outlook Preferred segments AXA XL integrated in In line with FY19 +3% to +7% UEPS CAGR +5% in 4Q2
Slide 31: Q&A
Q&A FY20 Earnings February 25, 2021
Slide 32: AXA Investor Relations | Keep in touch
AXA Investor Relations | Keep in touch Meet our management Call us February – Investor Relations +33 1 40 75 48 42 Virtual European and US roadshows Virtual March Andrew Wallace-Barnett +33 1 40 75 46 85 Head of Investor Relations March 17 Morgan Stanley European Financials Conference London (Virtua
Slide 33: Thank you
Thank you FY20 Earnings February 25, 2021
Slide 34: Scope
Scope ▪ France: includes insurance activities, banking activities and holdings in France. ▪ Europe: includes Switzerland (insurance activities), Germany (insurance and banking activ ities, and holdings), Belgium (insurance activities and holdings), United Kingdom and Ireland (insurance activities an
Slide 35: Notes (1/4)
Notes (1/4) Page A5 1. Preferred segments: includes Health, P&C Commercial lines and Protection, as set out in the 2017 Investor Day presentation on November 14, 2017. 2. Dividend per share of €1.43 will be proposed at the Annual General Meeting on April 29, 2021 and is expected to be paid on Ma y 1
Slide 36: Notes (2/4)
Notes (2/4) Page A9 1. Renewals only at AXA XL Insurance, price effect calculated as a percentage of renewed premiums. Price effect for each quarter based on renewal premiums in each respective quarter at AXA XL. 2. AXA XL entered into an adverse development cover agreement with Enstar Group Limited
Slide 37: Notes (3/4)
Notes (3/4) Page A14 1. “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 lower volumes net of expenses, linked to Covid- 19. “Covid-19 claims” does not include any financial market impacts (including impacts on in
Slide 38: Notes (4/4)
Notes (4/4) Page A23 1. Includes the change in fair value of interest rate, equity and foreign exchange economic hedges not eligible for hedge accoun ting under IAS 39. Page A24 1. Includes impact of change in fair value of derivatives that qualify to be booked through other comprehensive income €+0