AXA FY16 Earnings Presentation...A8 | Full Year 2016 Earnings | Presentation | February 23, 2017 L&S...

February 23, 2017

AXA

FULL YEAR 2016 EARNINGS

Presentation

Certain statements contained herein are forward-looking statements including, but not limited to,

statements that are predictions of or indicate future events, trends, plans or objectives. Undue

reliance should not be placed on such statements because, by their nature, they are subject to

known and unknown risks and uncertainties. Please refer to the section “Cautionary statements”

in page 2 of AXA’s Document de Référence for the year ended December 31, 2015, for a

description of certain important factors, risks and uncertainties that may affect AXA’s business.

AXA undertakes no obligation to publicly update or revise any of these forward-looking

statements, whether to reflect new information, future events or circumstances or otherwise.

A3 | Full Year 2016 Earnings | Presentation | February 23, 2017

TABLE OF CONTENTS

INTRODUCTION & HIGHLIGHTS

Thomas Buberl, Group CEO

FY16 FINANCIAL PERFORMANCE

Gérald Harlin, Group CFO

CONCLUDING REMARKS


PAGE A4

PAGE A15

PAGE A42

Introduction & highlights



FY16 EARNINGS – KEY TAKEAWAYS

Earnings growth delivery with strong second half

Increased dividend supported by earnings growth

Business growth across all lines

Our Ambition: Innovation leader in insurance


EARNINGS GROWTH DELIVERY WITH STRONG SECOND HALF

Underlying earnings

In Euro billion

5.7

FY16

+3%

5.5

FY15

restated

Adjusted earnings

In Euro billion

5.9 6.1

FY16

+3%

FY15

restated

vs.

0% at 1H16

vs.

-2% at 1H16

Changes are in constant Forex


INCREASED DIVIDEND SUPPORTED BY EARNINGS GROWTH

Underlying earnings per share

In Euro per share

Dividend per share

In Euro per share

FY16

+5%

FY15

1.16 1.10

Adjusted earnings per share

In Euro per share

+4%

FY16

2.24

FY15

2.16

+3%

FY16

2.41

FY15

2.34 47% 48%

Payout ratio guidance

45%-55% of adjusted earnings

net of undated debt interest charges

Changes are on a reported basis


L&S – IMPROVED GROWTH WITH SUSTAINED PROFITABILITY

FY16 APE Growth

+2.1%

(vs. -1.9% at 1H16)

FY16 NBV Growth

+5% (40% FY16 NBV margin)

+16%

FY16 APE growth

Belgian buyout Euro 1.5 billion outflows in

Traditional G/A Savings, 70%

take-up rate

US buyout Euro 0.7 billion outflows in

Unit-Linked VA GMxB

Acceleration in Asia1 Focused Net Flows Key inforce actions

Funds &

Others

In Euro billion

+5.1

+1.0

-6.6

+3.6

G/A

Traditional3

Protection

& Health

Unit

Linked3

G/A Capital

Light2

+1.3

Changes are on a comparable basis

All notes are on pages 45 and 46


P&C – CONTINUED GROWTH AND UNDERWRITING DISCIPLINE

Gross revenues P&C CY Loss ratio

+3.4% FY16 growth

+3% Mature markets1

+7% Emerging markets1

94-95% AY CoR by 2020

Target now includes International Insurance

FY15

restated

FY16

-0.5 pt

71.9% 70.8%

Changes are on a comparable basis for revenues and in constant Forex excluding Genworth and Portugal for profitability figures



HEALTH – IMPROVED GROWTH AND PROFITABILITY

Gross revenues1 Health1 Combined ratio

-0.2 pt

FY16

94.9%

FY15

restated

95.1%

+4.3% FY16 GR growth

(vs. +3.4% at 1H16)

Euro 12 billion

FY16 Gross Revenues




COST SAVINGS UNDERWAY TOWARDS AMBITION 2020

Cost savings

In Euro billion

2.1

Ambition 2020

Target

FY16

achievement

0.3

Administrative expenses

Claims handling costs

Acquisition expenses

+3% UEPS CAGR*

2015 – 2020E

* Contribution to Ambition 2020 UEPS CAGR target from cost savings per 2016 Investor Day


IN LINE WITH AMBITION 2020 TARGETS

Underlying earnings per share

Target Euro 28-32 bn

Cumulative 2016E-2020E

Group operating free cash flow

Adjusted return on equity1

Solvency II ratio2

170% - 230%

Target range

Target 12% - 14%

2016E-2020E

Target 3%-7%

CAGR 2015-2020E

+4% FY16 vs. FY15

Euro 6.2billion

FY16

13.5% FY16

197% FY16

Changes are on a reported basis



INVESTING FOR A RESPONSIBLE FUTURE

Launch of additional Euro 150 million

Fund of Funds in Jan 2017

Innovation and

Responsibility

NeXT Building the next

insurance business

model

AXA divested from the

Tobacco Industry

Insurtech start-up studio

Certification

for Gender Diversity


OUR AMBITION: INNOVATION LEADER IN INSURANCE

B Innovative

Services: My Doctor services

app in Egypt

Adjacent

Services: WayGuard in

Germany

C

Prevention: Chat-bot technology

in Asia

A

22% of users have used the clinical or non

clinical services via the app

Includes teleconsultation services,

medical network access, and

claims processing services

7 contacts

per week from each active user

20/80 robot/human interactions

moving to 50/50 in 2017

40 seconds average response time

30% of registered users are active

Contact with customers

every 13 days

versus once a year for insurance on

average

29,521 registered users

1,400 new users per week

36,983 accompanied trips

1,665,612 mins of accompaniment

FY16 Financial performance

Gérald Harlin, Group CFO


Property & Casualty

Group earnings

Life & Savings

Asset Management

Balance sheet



UNDERLYING EARNINGS

+3%

5,688 5,507

FY16 FY15

restated

UNDERLYING EARNINGS

UNDERLYING EARNINGS BY SEGMENT

Changes are in constant Forex. For L&S and P&C changes are in constant Forex and excluding Genworth and Portugal

In Euro million

In Euro millionFY15

restatedFY16 Change

Life & Savings 3,375 3,507 +2%

Property & Casualty 2,482 2,514 +2%

Asset Management 458 416 -8%

Banking 97 78 -19%

Holdings -906 -827 +9%

Underlying Earnings 5,507 5,688 +3%


ADJUSTED EARNINGS

+3%

FY15

restated

6,103 5,940

FY16


In Euro million

ADJUSTED EARNINGS

DETAILS OF ADJUSTED EARNINGS

In Euro millionFY15

restatedFY16

Underlying Earnings 5,507 5,688

Net realized capital gains/losses 433 415

o/w realized capital gains 725 880

o/w net impairments -278 -395

o/w hedging of equity portfolio -14 -70

Adjusted Earnings 5,940 6,103


NET INCOME

5,829 5,617

+2%

FY16 FY15

restated

In Euro million

NET INCOME

DETAILS OF NET INCOME

In Euro millionFY15

restatedFY16

Adjusted earnings 5,940 6,103

Change in fair value & Forex -231 -118

o/w gains (losses) on economic hedges 1 -19 -158

o/w change in fair value of assets accounted for as fair value option -212 40

Exceptional and discontinued operations 159 387

Integration & Restructuring costs -177 -454

Intangibles amortization and other -74 -89

Net Income 5,617 5,829

*of which Euro 0.2 billion in Belgium

*




Property & Casualty

Group earnings

Life & Savings

Asset Management

Balance sheet



L&S – NEW BUSINESS SALES AND MARGINS BY MARKET

New business

sales

(APE)

Total

In Euro million

+ =

New business

value + =

FY15

restated

5,194

-1%

5,163

FY16 FY15

restated

1,301

+14%

FY16

1,406

+2%

FY16

6,600

FY15

restated

6,464

649664

FY15

restated

-1%

FY16

+5%

2,623

FY16

2,471

FY15

restated

FY15

restated

FY16

+7%

1,974 1,807

Emerging markets Total Mature markets


o/w SEA & China +19%

o/w Hong Kong +12%

New business

margin 35% 38% 51% 46% 38% 40%

China NBV

margin 17%


APE

(Euro million)

NBV

margin

Net Flows

(Euro billion)

Business line FY16 change FY16 FY15

restated FY16

Protection & Health 2,949 +2% 61% +6.0 +5.1

G/A Savings 1,438 +15% 18% -3.42 -3.0

of which G/A capital light1 873 +10% 23% -0.4 +3.6

Unit-Linked 1,549 -10% 31% +3.92 +1.3

Mutual Funds & Other 664 +10% 12% +0.4 +1.0

Total 6,600 +2% 40% +6.9 +4.4

L&S – NEW BUSINESS SALES AND MARGINS BY BUSINESS


o/w Euro -1.5

billion Belgium

buyout

o/w Euro -0.7

billion US GMxB

buyout



L&S – UNDERLYING EARNINGS BY BUSINESS

Changes are on comparable basis for pre-tax earnings and in constant forex excluding Genworth and Portugal for post-tax earnings

TOTAL LIFE & SAVINGS1

(post-tax) In Euro million

PROTECTION & HEALTH (pre-tax)

In Euro million

G/A SAVINGS (pre-tax)

In Euro million

UNIT-LINKED (pre-tax)

In Euro million

Full detail in appendix on pages B19 to B30

-5%

FY16

2,415

FY15

restated

2,496

848822

FY15

restated

+2%

FY16 FY15

restated

998

-2%

FY16

986

1H16

1,915 1,835

1H15

restated

+4%

TOTAL LIFE & SAVINGS


FY16

3,507 3,375

FY15

restated

+2%

Lower prior year reserve

development and non-repeat of

assumption changes in France

(Euro -0.3 billion) -

+ Lower expenses and higher

technical margin

- Lower investment margin

Higher result from US VA GMxB +

- Lower fees and revenues in Italy

+ Higher net technical margin

Decrease of corporate tax rate

in France and Euro 35 million

higher positive tax one-offs

- Higher DAC amortization in the US


L&S – UNDERLYING EARNINGS DRIVERS

Changes are on comparable basis for pre-tax earnings and in constant forex excluding Genworth and Portugal for post-tax earnings

TOTAL LIFE & SAVINGS1


+4%

1H16

1,915

1H15

restated

1,835

TOTAL LIFE & SAVINGS


+2%

FY16

3,507

FY15

restated

3,375

In Euro million

35131

110107

15124

FY16

3,507

Higher

positive tax

one-offs

Tax Exceptionals

in French

Protection

-259

Forex &

other3

Protection

& Health1

3,375

G/A

Savings

US VA

GMxB2

-131

Other Unit-

Linked

FY15

restated

• Lower prior year reserve developments

(Euro -209 million)

• Non-repeat of a favorable change in

assumptions (Euro -50 million)

1. Protection & Health excluding exceptionals in French Protection

2. US VA GMxB includes a positive GMxB hedge margin and the non-repeat of reserve strengthening in FY15

3. Forex & other: forex, scope, minority interests and mutual funds & other

Includes:

• Lower pre-tax earnings impact

• Lower corporate tax rate in France



Property & Casualty

Group earnings

Life & Savings

Asset Management

Balance sheet



P&C – REVENUES BY SEGMENT

• Average price effect of +3.8%

• Motor revenues up 4%

• Non-motor revenues up 4%

+3%

35,604 34,831

FY15

restated

FY16

FY16

18,105

FY15

restated

+4%

18,057

17,217

+2%

FY16

16,631

FY15

restated

• Average price effect of +1.5%

COMMERCIAL LINES In Euro million

PERSONAL LINES In Euro million

TOTAL In Euro million



P&C – PRICE EFFECT BY COUNTRY AND SEGMENT


Prices expected

to be stable

Prices expected

to decrease

Prices expected

to increase

Price

effect

Revenues

growth

Price

effect

Revenues

growth 2017 Market pricing trends

France +0.4% +1.7% +1.6% -3.2%Slight increase in prices expected in Personal lines.

Increased pressure on prices in Commercial lines.

Germany +2.7% +1.5% +0.8% +2.7%Prices expected to be stable in both Personal and

Commercial lines.

UK & Ireland +5.8% +7.2% +1.7% +7.2% Hardening of the cycle expected in Personal lines.

Switzerland +0.2% +1.0% +0.1% +0.3%Continued price softening in Personal lines and

stable pricing in Commercial lines.

Belgium +2.3% +0.9% +1.0% +0.8%Price decreases both in Personal and Commercial

lines due to increased competition.

Italy -2.9% -0.7% 0.0% +2.0%Price decreases both in Personal and Commercial

lines due to increased competition.

Spain +2.5% +0.6% +3.7% +5.6%First signs of hardening as profitability level are low in

the market.

EMEA-LATAM +20.7% +9.6% +4.3% +5.2%

Asia +1.0% +4.3% -1.4% -3.2%

Direct +4.9% +7.3% - -

Total +3.8% +3.6% +1.5% +2.3%

Personal Lines Commercial Lines

FY16


P&C – REVENUES AND MARGINS BY MARKET

+ + = Revenues

Current year

combined

ratio

= + +

Emerging

markets Total

In Euro million

Direct Mature markets

Changes are on a comparable basis for revenues and in constant Forex excluding Genworth and Portugal for current year combined ratio

FY15

restated

5,159 5,134

34,831 35,604

FY16

2,732

27,606 26,940

FY15

restated

FY16 FY15

restated

+3%

FY16

+7%

2,864

+2%

FY16 FY15

restated

+7%

FY16 FY16

97.7%

FY16

102.0%

+0.2pt

96.9% 97.7%

FY15

restated

96.9% 100.9%

FY15

restated

FY16

99.3% 98.7%

FY15

restated

FY15

restated

+9% on an economic

gross revenues basis1



P&C – UNDERLYING EARNINGS

INVESTMENT INCOME (pre-tax)

In Euro million

COMBINED RATIO

P&C UNDERLYING EARNINGS In Euro million

+2%

FY16

2,514

FY15

restated

2,482

Current year

combined ratio

Prior year reserve

developments

All-year

combined ratio +

0%

FY16

2,202

FY15

restated

2,260

Changes are in constant Forex excluding Genworth and Portugal

• Investment yield of 3.4% vs. 3.6% in FY15

• Higher average invested assets in FY16

96.2%

FY16

-1.2%

FY15

restated

-1.4%

FY16

97.7%

0.5%

FY15

restated

97.7%

0.7%

FY16

96.5%

FY15

restated

Natural Catastrophes

Lower loss ratio

Higher acquisition costs

+ -



Property & Casualty

Group earnings

Life & Savings

Asset Management

Balance sheet



AM – ASSETS UNDER MANAGEMENT

Average AUM and net flows in Euro billion

Revenues in Euro million

Average AUM (excl. Joint Ventures)

595618

-3%

FY15 FY16

464453

FY16

+1%

FY15

Net flows (incl. Joint Ventures)1

Net flows

-12

+3

FY16 FY15

Average AUM

Revenues (excl. Joint Ventures)

Revenues

FY15

-3%

FY16

1,180 1,242

FY15 FY16

+56 +42

Average AUM and net flows in Euro billion

Revenues in Euro million

FY15 FY16

-3%

2,530 2,580

Euro 38 billion from Joint Ventures in Asia in

FY16 vs. Euro 34 billion in FY15


+1% excl.

Friends Life

impact



AM – UNDERLYING EARNINGS

ASSET MANAGEMENT In Euro million

416

458

-8%

FY16 FY15 191224

-16%

FY15 FY16

225234

-1%

FY16 FY15

In Euro million

In Euro million


Including a negative tax one-off of

Euro 50 million in FY16 at AB.

+6% excl.

Tax one-off



Property & Casualty

Group earnings

Life & Savings

Asset Management

Balance sheet



FY16

4.0%

FY15*

3.9%

FY14

3.8%

FY13

3.7%

FY12

3.6%

FY11

3.3%

FY10

3.7%

ASSET & LIABILITY MANAGEMENT (1/4) Diversified and resilient investment portfolio

FY16 Total General Account

invested assets 83% in Fixed income

Limited yield dilution

Govies

& related

Corporate

bonds

Fixed income Assets duration

as at December 31, 2016

Life & Savings 8.3 years

Property & Casualty 5.6 years

Long asset duration leading to a slow

yield dilution

Life & Savings

Property & Casualty

FY16 FY15*

FY14

3.9%

FY13

3.9%

FY12

3.6%

FY11

3.4%

FY10

3.9% 4.0% 4.0%

Real estate

5%

Listed equities

3%

Cash

4%

Other fixed income2

8%

Policy loans

1%

Alternative investments1

3%

40%

35%

Euro 583

billion3

*Not restated for the scope changes




ASSET & LIABILITY MANAGEMENT (2/4) Diversified and resilient investment portfolio

Government and related bonds rating

40% of total General Account invested assets in FY16

13%

35%

A

BBB

32% AA

AAA

Corporate bonds rating1

35% of total General Account invested assets in FY16

AAA

Non rated

1%

Below investment

grade

1%

11% Euro 202

billion

Below investment

grade

8%

Average rating of government and related bonds

maintained in the AA range

Average rating of corporate bonds

maintained in the A range


15%

19%

A

BBB

38%

Euro 236

billion

AA

27%


Investment Grade

credit

Average rating: A

ASSET & LIABILITY MANAGEMENT (3/4) Well diversified and high quality new investments

New fixed income investments in FY16 Resilient new investment yield

FY16 new

investments

ABS

Below Investment Grade credit1

Government bonds & related Average rating: AA

Yield on new investments in fixed income assets

for Life & Savings and Property & Casualty entities

FY16

Eurozone 1.9%

US 2.4%

Japan 0.7%

Switzerland 0.9%

Total 1.8%

Euro

82 billion Amount invested in Fixed income

in FY16

~12%

~28%

~8%

~52%

Focus on investment grade credit

~81%

Corporate bonds

~8%

Other loans

~11%

Commercial Real Estate loans



Inforce business New business

Products sold in combination with higher

margin Unit-Linked business (hybrid2 sales)

FY16

L&S average guaranteed rate

Yield on total L&S asset base

Spread above

guaranteed rates

Spread above

guaranteed rate

FY16


Reinvestment yield on L&S fixed income assets

+140 bps

1.9%

3.3% +140 bps

0.4%

1.8%

Guidance:

65-75 bps

Resilient investment

margin1

FY16 FY15

79 bps 73 bps

Significant buffer to cover guarantees and to manage crediting

rates to preserve investment margin

Average reserves of Euro 363 billion

ASSET & LIABILITY MANAGEMENT (4/4) Life & Savings General Account investment spreads and margin



SHAREHOLDERS’ EQUITY

In Euro billion

FY16

70.6

FY15

68.5

Shareholders’ equity Key drivers of change

In Euro billion

Adjusted

ROE1 14.1% 13.5%


FY16 vs. FY15

Net income for the period +5.8

Change in net unrealized capital gains +1.7

Dividends -2.7

Subordinated debt -1.5

Change in pension benefits -0.6

Forex and other -0.7

+

-

-

-

-

+


Interest

Cover3

Debt

Gearing2

FY15

26%

10.7x

FY16 In Euro billion

DEBT & RATINGS

26%

15.7x

FY16

18.3

1.1

9.1

8.1

FY15

17.0

0.6

6.9

9.5

AA- stable

Aa3 stable

AA- stable

as of 27/10/2016

as of 09/09/2016

as of 28/06/2016

Financial debt Debt ratios

Ratings

Subordinated debt1

Senior debt

Undated subordinated debt

Euro 3 billion debt

issued in FY16 to

refinance in

advance part of

outstanding debt



SOLVENCY II RATIO

Required capital

Available capital

FY16

29.4

57.9

FY15

28.8

59.2

Solvency II ratio 205% 197%

-14 pts

Dividend

-10 pts

Operating

return

197%

Subordinated

debt, forex & other

-4 pts

Market impact

excl. forex

FY16

+19 pts

FY15

205%

In Euro billion

Key sensitivities

Solvency II ratio roll-forward

+3 pts

-9 pts

-1 pt

+6 pts

-7 pts

Solvency II ratio1

Equity markets -25%

Equity markets +25%

Interest rate -50bps

Ratio as of December 31, 2016

Corporate spreads +75bps

Interest rate +50bps

197%

200%

188%

196%

203%

190%



STRONG CASH FLOW GENERATION & REMITTANCE

Remittance

ratio

In Euro billion

88%

FY15 restated

5.1

6.2

5.4

6.2

FY16

81%

0% +7% FY16 vs. FY15 growth


Cash remitted from entities

Operating Free Cash Flows

Increased remittance ratio

from entities in FY16

Concluding remarks



FY16 EARNINGS – KEY TAKEAWAYS

AXA = Consistent Delivery

Top line growth (+3%)

Earnings (+4% UEPS)

Dividend (+5% DPS)

ROE (13.5%)

Financial Strength (197% SII ratio)

Q&A

FULL YEAR 2016 EARNINGS


NOTES (1/2)

In this document, “restated” stands for the retroactive restatements mainly for the sale of the UK Life & Savings and reclassification of

the International Insurance segment split into L&S and P&C and some Protection products with Unit-Linked features which were

previously classified under the Unit-Linked Line of Business are now classified under the Protection & Health Line of Business.

Page A8:

1. Asia includes Hong Kong and South East Asia, India and China region. 2. G/A Savings products which, at inception, create more AFR than the economic capital they consume. 3. FY15 figures were restated to take into account the reclassification at 1H16 of non-GMxB Variable Annuity product (SCS) in the

US from G/A Savings to Unit-Linked, to align with classification for APE and NBV. This reclassification explains the difference with the net flows reported page 68 of the financial supplement.

Page A9: 1. Direct business is split in Mature and Emerging markets.

Page A10: 1. Health is reported in Life & Savings (France, the US, Japan, Germany, Greece, Hong Kong, Singapore and Indonesia) and

Property & Casualty (the UK, Belgium, the EMEA-LATAM region, Luxembourg, Hong Kong, Italy, Malaysia, Spain, Singapore, Thailand, AXA Assistance and Direct) in line with reporting standards. The additional focus on Health is in line with the new strategy and organization dedicated to the Health business.

Page A12:

1. Adjusted ROE: return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average

shareholders’ equity excluding undated debt and reserves related to change in fair value.

2. The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US

equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016.

Solvency II ratio is estimated including the proposed amount of dividend for FY16. Dividends are declared by the Board at its

discretion based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval.

Page A19:

1. Interest rate and Foreign exchange economic hedges not eligible for hedge accounting under IAS 39.

Page A22:

1. G/A Savings products which, at inception, create more AFR than the economic capital they consume.

2. FY15 figures were restated to take into account the reclassification at FY16 of non-GMxB Variable Annuity product (SCS) in the

US from G/A Savings to Unit-Linked, to align with classification for APE and NBV. This reclassification explains the difference with

the net flows reported page 68 of the financial supplement.

Page A28:

1. Economic gross revenues: all entities are consolidated on a group share basis.


NOTES (2/2)

Page A31:

1. AXA IM’s joint ventures in Asia (China, Korea and India) are included at 100% in net flows, opening and closing assets under

management but are excluded from revenues and average assets under management as they are not fully consolidated.

Page A34:

1. Mainly Private Equity and Hedge Funds.

2. Other fixed income include Asset backed securities (Euro 13 billion), residential loans (Euro 12 billion), commercial & agricultural

loans (Euro 21 billion) and Agency Pools (Euro 1 billion).

3. FY16 invested assets referenced in page 52 of the financial supplement are Euro 788 billion, which include notably Euro 175

billion of Unit-linked assets and Euro 35 billion related to the banking segment.

Page A35:

1. Corporate bonds not rated by external rating agencies are reallocated under AXA’s internal ratings: AAA: Euro 0.3 billion / AA:

Euro 1.4 billion / A: Euro 3.0 billion / BBB: Euro 4.7 billion / Below investment grade: Euro 2.9 billion.

Page A36:

1. Mainly short duration high yield.

Page A37:

1. Group investment margin on total Life & Savings General Account business.

2. Hybrid products are savings products allowing clients to invest in both Unit-Linked and General Account assets.

Page A38:

1. Adjusted ROE: return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average

shareholders’ equity excluding undated debt and reserves related to change in fair value.

Page A39:

1. Including Euro 1.3 billion of reversal of market-to-market on interest rates derivatives in FY16 versus Euro -0.6 billion in FY15.

2. Starting 1H16, debt gearing is calculated gross of Holding company cash. FY15 debt gearing net of cash was reported at 23%.

3. Including undated debt interest charges.

Page A40:

1. The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US

equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016.

Solvency II ratio is estimated including the proposed amount for dividend. Dividends are declared by the Board at its discretion

based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval.

Page A43:

1. Top line growth is measured by Economic Gross Revenues. ROE is adjusted earnings net of interest charges on undated debt.

Equity corresponds to average shareholders’ equity excluding undated debt and reserves related to change in fair value


DEFINITIONS

AXA’s FY16 financial statements are subject to a completion of limited review by AXA’s independent auditors. AXA's FY16 results have

been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of December 31,

2016.

Underlying Earnings, Adjusted Earnings, APE, NBV and Group Operating Free Cash Flows are non-GAAP measures and as such are

not audited, may not be comparable to similarly titled measures reported by other companies and should be read together with our

GAAP measures. Management uses these non-GAAP measures as key indicators of performance in assessing AXA’s various

businesses and believes that the presentation of these measures provides useful and important information to shareholders and

investors as measures of AXA’s financial performance. For a reconciliation of underlying and adjusted earnings to net income see pages

A16 and A17 of this presentation.

Life & Savings emerging markets: APE and NBV: China, Czech Republic, Hong Kong, India, Indonesia, Mexico, Morocco, Philippines,

Poland, Singapore, Thailand and Turkey; Revenues: Colombia, Czech Republic, Hong Kong, Indonesia (excl. bancassurance entity),

Mexico, Morocco, Poland, Singapore, Slovakia and Turkey.

Property & Casualty emerging markets: Revenues: Brazil, Colombia, the Gulf region, Hong Kong, Malaysia, Mexico, Morocco,

Singapore, Thailand and Turkey.

South-East Asia, India and China (L&S): APE and NBV: China, India, Indonesia, Philippines and Singapore and Thailand; Revenues:

Singapore and non-bancassurance subsidiaries in Indonesia; China, India, Philippines, and bancassurance business in Indonesia and

Thailand are not included in revenues due to consolidation under equity method; Malaysian operations are not consolidated.

Asia (P&C): Hong Kong, Malaysia, Singapore and Thailand. China and India are not included in revenues due to consolidation under

equity method. Indonesian operations are not consolidated.

EMEA-LATAM region: Europe, Middle East, Africa & Latin America. For Life & Savings: Colombia, Czech Republic, Greece,

Luxembourg, Mexico, Morocco, Poland, Slovakia, and Turkey are fully consolidated; Portugal was disposed on April 1, 2016; Nigeria is

consolidated under the equity method and contributes only to the underlying earnings, adjusted earnings and net income. For Property

& Casualty: Brazil, Colombia, Greece, the Gulf region, Luxembourg, Mexico, Morocco and Turkey are fully consolidated; Russia,

Nigeria and Lebanon are consolidated under the equity method and contribute only to the underlying earnings, adjusted earnings and

net income; Brazil is fully consolidated since January 1, 2016; Portugal was disposed on April 1, 2016.

Direct (P&C): AXA Global Direct (Belgium, France, Italy, Japan, Poland, South Korea and Spain), UK Direct operations. In France,

Natio is not included in revenues due to consolidation under equity method.

Emerging markets include the following entities: EMEA-LATAM Region (Brazil, Colombia, Czech Republic, the Gulf region, Lebanon,

Mexico, Morocco, Poland, Slovakia, Turkey and Russia), Hong Kong, South-East Asia (Indonesia, Malaysia, Singapore, Philippines,

Singapore and Thailand), India and China, excluding Direct operations.

Mature markets include the following entities: AXA Assistance, AXA Corporate Solutions Assurance, Belgium, France, Germany,

Greece, Italy, Ireland, Japan, Luxembourg, Portugal (in 2015 only), Switzerland, Spain, the United Kingdom and the United States.

February 23, 2017

AXAFULL YEAR 2016 EARNINGS

Appendices

Certain statements contained herein are forward-looking statements including, but not limited to,statements that are predictions of or indicate future events, trends, plans or objectives. Unduereliance should not be placed on such statements because, by their nature, they are subject toknown and unknown risks and uncertainties. Please refer to the section “Cautionary statements”in page 2 of AXA’s Document de Référence for the year ended December 31, 2015, for adescription of certain important factors, risks and uncertainties that may affect AXA’s business.AXA undertakes no obligation to publicly update or revise any of these forward-lookingstatements, whether to reflect new information, future events or circumstances or otherwise.

B3 | Full Year 2016 Earnings | Appendices | February 23, 2017

TABLE OF CONTENT

BUSINESS OVERVIEW

GROUP

LIFE & SAVINGS

PROPERTY & CASUALTY

HEALTH

ASSET MANAGEMENT

BALANCE SHEET

CORPORATE RESPONSIBILITY

B04

B12

B16

B33

B39

B41

B44

B73

Business overview


GROUP REVENUES AND UNDERLYING EARNINGS

1. Direct business revenues and underlying earnings are split within geography2. Underlying earnings excluding holdings3. Other: AXA Corporate Solutions, AXA Assistance, AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas, AXA Global P&C, AXA Liabilities

Managers, Family Protect and Banking.4. EMEA-LATAM: Luxembourg, Russia (P&C and underlying earnings only), Poland, Czech Republic and Slovakia (L&S only), Greece, Turkey, Mexico, Morocco, Nigeria (underlying

earnings only), Colombia, Gulf region (P&C only), Lebanon (P&C and underlying earnings only) and Brazil (P&C only)5. Europe (excl. France): United Kingdom & Ireland, Germany, Switzerland, Belgium, Italy and Spain

Euro 100 billion

Revenues by geography1 Underlying earnings by geography1,2

EMEA-LATAM4

6%

Asia (incl. Japan)11%

Asset management4%

Other3

5%

Europe (excl. France)5

37%

United States14%

France24%

Euro 7 billion

EMEA-LATAM4

3%


Asset management6%

Other3

4%


35%

United States14%

France21%


Brokers – IFAs & others25%

LIFE & SAVINGS | Scope overview

FY16 APE by geography

Total APE: Euro 6,600 million

Global footprint

US26%


17%

EMEA-LATAM1

2%


France28%

Well balanced business mix

Strong proprietary networks

G/A Savings22%

Unit-Linked 23%

Protection & Health

45%

Mutual Funds & other10%

FY16 APE by business

FY16 APE by channel

Partnerships21% Agents & salaried

sales force53%

1. EMEA-LATAM: Greece, Morocco, Mexico, Turkey, Poland and Czech Republic2. Europe (excl. France): Germany, Switzerland, Belgium, Italy and Spain3. Other: Architas, AXA Life Invest (excluding Germany & Japan), AXA Global Life and

AXA Corporate Life Reinsurance Company

Total APEEuro 6,600 million

Total APEEuro 6,600 million

Other3

0%


Germany11%

EMEA-LATAM3

12%

Spain5%

France21%

United Kingdom & Ireland

15%

Belgium6%

Italy5%

Other2

0%AXA Corporate Solutions7%

Switzerland9%

Asia6%

AXA Assistance4%

Other3

15%

Workers’ compensation4%

Agents32%

PROPERTY & CASUALTY | Scope overview

AXAWinterthur

Property22%

Construction2%

Partnerships5%

Direct511%

Brokers – IFAs & other53%

FY16 revenues by channel

FY16 revenues by geography1 FY16 revenues by business

1. Direct business revenues are split within geography2. AXA Global P&C and AXA Liabilities Managers3. EMEA-LATAM: Greece, Turkey, Mexico, Morocco, the Gulf region, Colombia, Brazil,

Luxembourg and Poland (Direct)4. Other includes transport, protection and others5. Sales recorded through the Direct channel include the sales of the Direct business

unit and Direct sales from other entities

Motor39%

Total: Euro 35.6 billion

Global footprint Strong presence in Motor

Strong proprietary networks

Liability7%

TotalEuro 35.6 billion

TotalEuro 35.6 billion

Health10%


AXA’S FOOTPRINT IN EMERGING MARKETS

#2#14 India #14 China

FY16 APE by geography

Thailand12% China

21%

Other1

3%

Hong Kong38%

Mexico2%

Total APE: Euro 1,406 million

Indonesia9%

Singapore7%

Philippines3%

Czech Republic3% Poland

2%

#2 IndonesiaThailand

#6 SingaporeHong Kong #4#5

Key rankings2 2016

#3 Malaysia#1 Hong Kong

#2 SingaporeMexico #3#2

Philippines

Turkey

1. Other: India, Turkey and Morocco2. Source: AXA FY16 Activity report. 2015 ranking for Philippines Life & Savings, Mexico and Gulf region Property & Casualty

Turkey20%

Malaysia6% Mexico

28%

Total Revenues: Euro 5,134 million

Singapore5%

Colombia8%

Morocco5%

Gulf region16%

FY16 revenues by geography

Hong Kong8%

#2 Colombia

Life & Savings Property & Casualty

Thailand2%

Key rankings2 2016

Brazil2%


L&S ECONOMIC GROSS REVENUES

Economic gross revenues1

In Euro millionFY15

restated FY16 Change on comparable basis

IFRS2 change oncomparable basis

Life & SavingsUnited States 13,628 14,303 +4% +4%France 16,266 17,206 +5% +6%Germany 6,650 6,662 0% 0%Switzerland 7,170 7,044 -1% -1%Belgium 1,715 1,210 -29% -29%Italy 2,388 1,974 -17% -17%Spain 756 792 +5% +5%EMEA-LATAM3 1,163 984 +1% +1%Japan 4,139 5,094 +10% +10%South-East Asia, India & China 2,712 3,166 +19% +16%Hong Kong 2,507 2,737 +13% +13%Other4 428 253 -35% -35%

Total 59,522 61,424 +2% +2%

1. Economic gross revenues definition: all entities are shown at ownership rate.2. IFRS: IFRS scope of consolidation (fully consolidated entities at 100% and equity-method entities at 0%).3. EMEA-LATAM: Colombia, Czech Republic, Greece, Luxembourg, Mexico, Morocco, Nigeria, Poland, Portugal (only for FY15 restated), Slovakia and Turkey4. Other: AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas and Family Protect


P&C ECONOMIC GROSS REVENUES

Economic gross revenues1

In Euro millionFY15

restated FY16 Change on comparable basis

IFRS2 change oncomparable basis

Property & CasualtyFrance 6,014 6,736 0% 0%United Kingdom & Ireland 4,792 4,657 +8% +8%Germany 3,909 4,016 +3% +3%Switzerland 3,069 3,056 +1% +1%Belgium 2,010 2,081 +4% +4%Italy 1,473 1,466 0% 0%Spain 1,535 1,566 +2% +2%EMEA-LATAM3 4,292 4,048 +10% +8%Direct 2,810 2,939 +6% +7%Asia 1,530 1,562 +3% +1%AXA Corporate Solutions 2,226 2,289 0% 0%AXA Assistance 1,226 1,276 +5% +5%Other4 86 103 +16% +16%

Total 34,973 35,794 +4% +3%

1. Economic gross revenues definition: all entities are shown at ownership rate.2. IFRS: IFRS scope of consolidation (fully consolidated entities at 100% and equity-method entities at 0%).3. EMEA-LATAM: Brazil, Colombia, Greece, the Gulf region, Lebanon, Luxembourg, Mexico, Morocco, Nigeria, Portugal (only for FY15 restated), Russia and Turkey4. Other: AXA Global P&C and AXA Liabilities Managers


ASSET MANAGEMENT| Scope overview

Complementary business models

• Multi-expert model: structured by“Expertise”

• Expertise in fixed income, equities,quantitative equities

• Focus on alternative investments(structured finance, real estate, fundsof hedge funds)

• Client centric business model acrossthe full value chain

• Risk-reducing, return-seeking, diversifyingstrategies and customized solutions

• Expertise in actively managed equity and fixedincome strategies, as well as index strategies

• Growing platform of alternative and multi-assetservices and solutions

• Institutional research and trading

PRODUCT OFFER

• Separate distribution platforms for third parties & AXA insurance companies

• Global and integrated distribution platforms through Institutions, Retail and Private Client channels

DISTRIBUTION

• Mainly Europe • US, Europe and AsiaFOOTPRINT

• Euro 486 billion as at 31/12/2016 • Euro 717 billion as at 31/12/2016 AuM


REVENUES

Revenues by segment

1. Restated to exclude UK Life and Savings business operations in FY15

Life & Savings1 58,862 60,282 +2% +2%

Property & Casualty 34,831 35,604 +2% +3%

Asset Management 3,822 3,710 -3% -3%

Banking 621 596 -4% -4%

Revenues 98,136 100,193 +2% +2%

In Euro millionFY15

restated FY16 Reported change

Comparable change


UNDERLYING EARNINGS BY GEOGRAPHY

1. Changes at constant forex excluding Genworth and Portugal2. EMEA-LATAM: Luxembourg, Russia (P&C only), Poland (L&S only), Czech Republic and Slovakia (L&S only), Greece, Turkey, Mexico, Morocco, Nigeria, Colombia, Gulf region (P&C only), Lebanon (P&C only),

Brazil (P&C only) and Portugal (FY15 only)3. Other: AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas, Family Protect, AXA Global P&C and AXA Liabilities Managers

Life & Savings 3,375 3,507 +4% +2%United Sates 834 905 +9% +7%France 825 774 -6% -8%Japan 412 480 +17% +5%Germany 165 223 +36% +36%Switzerland 328 287 -12% -11%Belgium 163 182 +12% +12%Italy 98 76 -23% -23%Spain 48 44 -10% -10%EMEA-LATAM2 67 49 -27% -10%Hong Kong 353 366 +4% +3%South-East Asia & China 145 174 +20% +22%Other3 -63 -52 -18% -16%Property & Casualty 2,482 2,514 +1% +2%France 507 598 +18% +14%United Kingdom & Ireland 273 203 -26% -18%Germany 378 286 -24% -24%Switzerland 503 474 -6% -5%Belgium 241 179 -26% -26%Italy 147 110 -25% -25%Spain 70 92 +33% +33%EMEA-LATAM2 -76 144 n.a. n.a.Direct 135 168 +25% +34%Asia 53 49 -8% -8%AXA Corporate Solutions 134 122 -9% -9%AXA Assistance 25 13 -47% -47%Other3 94 75 -20% -18%Asset Management 458 416 -9% -8%AB 224 191 -15% -16%AXA IM 234 225 -4% -1%Banking 97 78 -19% -19%Holdings -906 -827 +9% +9%

Total 5,507 5,688 +3% +3%

In Euro millionUnderlying Earnings

FY15restated FY16 Reported

changeChange at

constant Forex1

Or +19% restatingfrom the change in

Group share in Bhartifrom 26% to 49%


FY16 KEY SENSITIVITIES

1. Consists of gains/losses on derivatives and forex economic hedges not eligible for hedge accounting under IAS 39, as well as the change in fair value of assets accounted for as fairvalue option

Balance Sheet

+75 bps -0.3 -1.7

+100 bps +0.0 -9.3

-75 bps +0.3 +1.7

+0.0

+0.3

-0.3

+25% 0.0 +0.2 +1.5

-100 bps +0.0 +7.7

+0.1

+0.0

-25% -0.5 -0.1 -1.0

In Euro billion Impairments net of hedges through

Adjusted Earnings

Change 1 in fair value and Forex through

Net Income

Net unrealized capital gains through

Shareholders' Equity

Total impact in Net income (incl. Impact

through Adjusted earnings)

-0.6

P&L

Equities

Interest rates

Corporatespreads

Life & Savings


LIFE & SAVINGS

REVENUES, NEW BUSINESS VOLUMES AND PROFITABILITY

UNDERLYING EARNINGS MARGIN ANALYSIS

UNDERLYING EARNINGS MARGIN ANALYSIS BY BUSINESS

FOCUS ON THE US

Page B18

Page B19

Page B25

Page B31

1

2

3

4


L&S | Revenues and net inflows

In Euro billion


14.3

1.38.5

17.0

19.1

FY16 L&S revenues by region

EMEA-LATAM and other1

-8%

Asia (incl. Japan)+11% Europe

(excl. France)2

-6%

France+6%

L&S net inflows


US+4%

1

1. EMEA-LATAM: Greece, Luxembourg, Morocco, Mexico, Turkey, Colombia, Nigeria,Poland, Czech Republic, Slovakia, AXA Life Invest Services, AXA CorporateSolutions Life Reinsurance, AXA Global Life and Architas

2. Europe (excl. France): Germany, Switzerland, Belgium, Italy and Spain

i. 2015 figures were restated to take into account the reclassification at 1H16 of non-GMxBVariable Annuity products (“Structured Capital Strategies”) in the US from G/A Savings to Unit-Linked, to align with the classification for APE and NBV.ii. G/A Savings products which, at inception, create more AFR than the economic capital theyconsume.

In Euro billionFY15

restated FY16

France +3.1 +3.5

Europe (excl. France) +0.6 -2.9

United States 0.0 +0.1

Asia (incl. Japan) +2.6 +3.4

EMEA-LATAM +0.4 +0.3

Other +0.2 +0.1

Total +6.9 +4.4

of which mature markets +4.5 +2.3

of which emerging markets +2.5 +2.2

In Euro billionFY15

restatedFY16

Protection & Health +6.0 +5.1

G/A Savingsi -3.4 -3.0

o/w capital light ii -0.4 +3.6

o/w traditional G/A -3.0 -6.6

Unit-Linked +3.9 +1.3

Mutual funds & other +0.4 +1.0

Total +6.9 +4.4

Net flows by country/region

Net flows by business


FY16Comp.

Change1 FY16Comp.

Change1

Underlying earnings +2%Euro 3,507 million

Tax3 804 -16%

Minority interest 76 -27%

UE from associates 178 +28%

Pre-tax underlying earnings -2%Euro 4,388 million

Technical margin 1,498 +167% VBI amortization 169 +10%

Margin on assets 5,689 -4% Admin. Expenses 3,052 +1%

+16%Margin on revenues2 4,989 -2% Acquisition expenses 4,745

+ +

-

-

L&S | Underlying Earnings margin analysis

In Euro million

Gross Margin Expenses

In Euro million

1. Changes are at constant forex and excluding Genworth and Portugal2. Life & Savings gross written premiums and mutual fund sales3. Tax rate decreased from 21% in FY15 to 18% in FY16 mainly due to higher positive tax one-off which amounted to Euro 193 million vs. Euro 158 million for FY15 restated (Euro 202

million in FY15 reported)

2


-0.1 pt-0.3 pt business mix

Detail by product +0.3 pt country mix

Protection & Health: 14.2%G/A Savings: 2.0%Unit-Linked: 2.6%Mutual funds & other: 3.2%

Euro 4,989 million +1%

+2%

Margin on revenues1

Life & Savings revenues1

Euro 60,391 million

Average margin on L&S revenues1

8.3%

x

L&S | Margin Analysis

Details of margin on revenuesMargin on revenues


1. Life & Savings gross written premiums and mutual fund fees

2

* Or -2% on a constant forex basis which includes a reclassification from margin on revenues to technical margin, mainly in Japan

*



Details of margin on Unit-Linked assetsUnit‐Linked management fees


2

1. Including other fees (mainly mutual fund and brokers fees) of Euro 416 million (-2% vs. FY15)

*

* Excludes net flows from SCS products in the US

Euro 2,604 million -3%

Euro 5,689 million -4% 0%


Average management fees on Unit-Linked reserves

-6 bps

Unit-Linked management fees-4 bps business mix-2 bps country mix

160 bps

Margin on assets1 Unit-Linked average reserves

Euro 163 billion

General Account investment marginIn Euro billion

Reserves as of Jan. 1, 2016Scope (restatement of UK)Opening reserves restatedNet flowsMarketForexReserves as of December 31, 2016

195-28168-1+7+3176

+

x




+2%

377+5+6+5-1

393

Reserves as of Jan. 1, 2016Net flowsMarketForexScopeReserves as of December 31, 2016

Unit-Linked management fees

Margin on assets1 Average management fees on general account reserves

-5 bps

General Account investment margin

-5 bps business mix0 bp country mix

Euro 2,669 million -4% General Account average reserves

Euro 363 billion

In Euro billion

73 bps

+

x


Details of margin on General Account assetsInvestment margin


2

1. Including other fees (mainly mutual fund and brokers fees) of Euro 416 million (-2% vs. FY15)

*

* Includes net flows from SCS products in the US



Euro 1,498 million +108%

Euro -186 million +83%In Euro billion

o/w basis -41

o/w volatility (equity and interest rates) -40

o/w interest rates, credit spreads and other -183

o/w model and assumption changes 78

Mortality & morbidity margin and other1

Technical margin

GMxB Variable Annuity margin

+


Details of technical marginTechnical margin


1. Claims paid, maturities and surrenders

2

* Or +167% on a constant forex basis which includes a reclassification from margin on revenues to technical margin, mainly in Japan

*



Focus on gross technical margin

Euro 11 million net Underlying Earnings impact

2

In Euro million

FY15restated FY16

In Euro million

Gross GMxB Variable Annuity technical margin (pre-tax, pre-DAC)

-10%

FY16

1,684

FY15restated

1,609

-186

-1,080

Gross mortality, morbidity & surrender margin (pre-tax)


FY16 GMxB VA technical margin (pre-tax, pre-DAC) evolution mainly explained by:• Higher GMxB margin in the US mostly from an improved hedge

margin and the non-repeat of 2015 reserve strengthening• Non-repeat of exceptional costs in Germany following the

implementation of a new hedging strategy in FY15

FY16 mortality, morbidity and surrender margin evolution mainly explained by:• Lower prior year reserve development and non-repeat of

assumptions change in Protection in France (Euro -0.3 billion)• Higher mortality margin in the US, Japan, Germany and Mexico


L&S | Underlying Earnings by business3

Changes are on comparable basis for pre-tax earnings by business and on constant forex excluding Genworth and Portugal for post-tax earnings

Euro million FY15restated FY16 % change

Protection & Health 2,496 2,415 -5%

G/A Savings 822 848 +2%

Unit-Linked 998 986 -2%

Mutual funds & Other 98 139 +3%

Pre-tax Underlying Earnings 4,413 4,388 -2%

Tax and Minority interest -1,038 -881

Underlying Earnings 3,375 3,507 +2%


Protection & Health G/A savings Unit-Linked Mutual Funds

& Other

8%of GWP

73 bpsof avg. G/A reserves

160 bpsof avg. UL reserves

Technical Margin & Other 1,590 73 -142 393

Gross margin 6,943 1,877 2,803 552 12,176

Admin. Exp. & Other -1,430 -582 -909 -123 -3,043

Acquistion expenses -3,099 -448 -908 -290 -4,745

Pre-tax UE 2,415 848 986 139 4,388

Management fees 189 2,415

Margin on revenues 4,264 262 373 90

Investment margin 901 1,543 157 68

L&S | FY16 Margin analysis by business

Main profit drivers

3

In Euro million

1

1. Mainly other fees (mainly mutual fund and brokers fees)


L&S | Margin Analysis by business

Protection & Health1

3

Technical result Unit-Linked management fees Net investment marginIn Euro million

1. From FY16, Unit-Linked Protection with Savings products have been reclassified in Protection & Health (please refer to page B32 for more information)

FY16 Comp.Change FY16 Comp.

Change FY16 Comp.Change

Protection & Health average G/A reserves

175,141 +3%

Protection & Health Combined ratio (in %)

96.1% +0.4 pt UL average management fees

122 bps -12 bps Protection & Health investment spread

Protection & Health GWP

29,966 +3% Protection & Healthaverage UL reserves

15,529 -1%

51 bps -5 bps

Net technical result 1,176 -6% Unit-Linked Management fees 189 -10% Investment margin 901 -7%


Pre-tax underlying earnings-5%

Euro 2,415 million

x x

+

+

x


Combined ratio


Protection & Health – Details on Combined Ratio

1. Expense ratio includes VBI amortization

80.5%Loss ratio 81.0%

Expense ratio

+0.4 pt

FY16

96.1%

15.6%

FY15restated

95.9%

14.9%

3


Loss ratio deteriorated by 0.2 point:

Lower prior year reserve development and non-repeat of assumptions change in Protection inFrance (Euro -0.3 billion)

Higher technical margin combined with higherfees and revenues in Germany and Japan

Higher fees and revenues in the US (more thanoffset by DAC amortization)

Expense ratio1

Loss ratio

Expense ratio deteriorated by 0.2 point:

Higher DAC amortization in the US (partly offsetin fees and revenues)

Lower administrative expenses andcommissions, notably in France and the US

+

-

-

+

+

-0.5 pt excluding exceptionalson French Protection


FY16 Comp.Change FY16 Comp.

Change

FY16

-4 bps

G/A Savings Gross revenues

13,096 +6% G/A Savings Average reserves

188,347 +2%

Margin on G/A Savings revenues

2.0% -0.7 pt G/A Savings Investment spread

82 bps

Comp.Change

Margin on revenues 262 -20% Investment margin 1,543 -2% Technical margin & Other 73 +14%

Gross margin -5%Euro 1,877 million

Acquisition costs 448 -18% Administrative expenses & Other

582 -2%

Pre-tax underlying earnings +2%Euro 848 million

x x

+

-

In Euro million


G/A Savings

3

Lower Unearned Revenues Reserves amortization offset by lower DAC amortization, both due to the change in interest rates assumptions (mainly in France)


In Euro million


Unit-Linked

3

FY16 Comp.change FY16 Comp.

change

FY16

-186 +83%

-6 bps

Unit-Linked Gross revenues

14,549 -9% Unit-Linked Average reserves

147,198 +1%

Average margin on Unit-Linked revenues 2.6% -0.5 pt UL average

Management fees 164 bps

Gross margin +27%Euro 2,803 million

Comp.change

Margin on revenues 373 -25% Unit-Linked Management fees 2,415 -3% Technical

margin & Other -142 +85%

Administrative expenses & Other

909 +5%

o/w GMxB VA margin

Investment margin 157 -10%

Pre-tax underlying earnings -2%Euro 986 million

Acquisition costs 908 +175%

x x

+

-


L&S | Focus on the US4

In Euro million, net of DAC and tax1 FY13 FY14 FY15 FY16

Total Variable Annuity base fees & other, less expenses

338 2962 381 329

GMxB hedge margin -50 -74 -13 23o/w Basis -1 -26 -12 -4

o/w Volatility -15 -7 -3 -7

o/w Interest rates, credit spreads & other -33 -41 3 34

Total reserve strengthening 54 -4 -93 -3o/w lapse experience / assumptions 0 0 -52 0

o/w other policyholder behavior 0 0 -85 0

o/w management actions including premium suspension, buyout program & model refinements/ assumptions

54 -4 45 -3

Variable Annuity GMxB Underlying Earnings 342 2182 275 349

1. Notional tax rate of 35%.2. Negatively affected by a new risk-based allocation of investment margin among products implemented in the US starting FY14, with zero impact on total US Life & Savings Underlying

Earnings. Based on this new methodology, the amount reallocated to other products would have been Euro -35 million in FY13.3. New Non GMxB Variable Annuity includes: Investment Edge and Structured Capital Strategies.4. FY15 restated: reclassification of AXA Liabilities Managers Accident & Health from the International Insurance segment into the United States Life & Savings operations.

In Euro million

905760

559834

FY16FY15restated4

FY14FY13

48%

FY16 30% 22%

31% 12%

15%

16%10% 2%20%

10%FY15 19% 25%

15%FY08 22%

2%

New Non-GMxB VA3

Fixed rate GMxB VA

Floating rate GMxB VA

Retirement Plan Services Non-GMxB VA

Life

Mutual Funds & Other

US Variable Annuity GMxB Underlying Earnings

US Life & Savings Underlying Earnings US Life & Savings APE

Increasing contribution of VA GMxB to

Underlying Earnings

Positive GMxBhedge margin


L&S | Reclassification of Unit-Linked Protection with Savings to Protection & Health

FY151

Unit-Linked Protection with

Savings products

FY15restated

Protection & Health 2,645 380 3,025Unit-Linked 2,217 -380 1,837

Protection & Health 27,243 1,932 29,176Unit-Linked 17,942 -1,932 16,010

Protection & Health 5.8 0.2 6.0Unit-Linked 4.1 -0.2 3.9

Protection & Health 51.6% +1 pt 52.4%Unit-Linked 39.0% -4 pts 35.0%

Protection & Health 0 16,530 16,530Unit-Linked 158,156 -16,530 141,626

Protection & Health 2,248 248 2,496Unit-Linked 1,246 -248 998

Underlying earnings pre-tax

Key performance indicator(in Euro million, unless other specified)

Unit-Linked average reserves

APE

Gross revenues

Net flows2

(in Euro billion)

NBV margin (%)

1. FY15 restated for the sale of UK Life & Savings operations2. 2015 figures were restated to take into account the reclassification at 1H16 of non-GMxB Variable Annuity products (“Structured Capital Strategies”) in the US

from G/A Savings to Unit-Linked, to align with the classification for APE and NBV.

Property & Casualty


P&C | Revenues and net new contracts

FY16 P&C revenues by markets FY16 P&C personal net new contracts

In thousands

Mature markets78%

Emerging markets14%


+212

-534

FY16FY15

Positive new business sales in motor business in Malaysia,partly offset by selective underwriting in Turkey and inFrance partially due to the Hamon law.

Direct8%

Of which:+366 in Direct-392 in Mature-508 in Emerging

Of which:+82 in Direct+76 in Mature+54 in Emerging


P&C | Underlying Earnings analysis

Net technical result Net investment incomeIn Euro million In Euro million

Changes are on a comparable basis for activity indicators (constant Forex, scope and methodology). Changes are on a constant exchange rate basis and excluding Genworth and Portugal for earnings

FY16 Change

1. Combined ratio calculated based on gross earned premiums2. Technical result net of expenses3. Net of interests credited to P&C reserves relating to annuities. Gross asset yield was 3.4%4. Tax rate: 26% in FY16 vs. 30% in FY15 (includes a reduction in tax rate in France from 38% to 34.43%)

FY16 Change

Minority interest -51 +28%

Underlying earnings Euro 2,514 million +2%

0%


Pre-tax underlying earnings Euro 3,479 million -3%

Tax4 -914 -15%

Net technical result2 1,230 -10% Net investment income 2,202

-0.2 pt

Revenues 35,604 +3% Average P&C assets 72,615 +6%

Combined ratio1 (in %) 96.5% +0.5 pt Average Asset Yield3 3.0%x

++

-

x


P&C | Details on Combined Ratio

69.6%

96.2%

FY15 restated

25.7%

FY16

96.5%

70.5%

26.9%

+0.5 pt

ExpenseRatio

LossRatio

Combined ratio Expense ratio roll-forward

Loss ratio roll-forward

Change a constant exchange rate basis and excluding Genworth and Portugal for earnings

-0.1 pt

FY15 restated

70.5%

Current accident

year

69.6%

Prior year reserve dev.

-0.2 pt

Nat Cat

+0.3 pt

FY16

-0.9 pt

Administrative

25.7%

FY15 restated

+0.6 pt

Acquisition

8.7% 8.9%

17.0% 18.1%

26.9%

FY16

+ 0.1 pt

+0.5 pt


P&C | Details on current year loss ratios

Personal Motor Personal non Motor

Total P&CTotal Commercial linesincl. Construction & Work. Comp.

1. Other includes opening adjustments, changes in mix, claims handling costs, reinsurance impact excl. Nat Cat, other changes in reserves, Forex and scope (excluding Genworthand Portugal)

FY16 CY Loss Ratio

75.0%

Other1

+1.3pts

Frequency & Severity

+1.9pts

Price effect

-4.1pts

Nat Cat

0.0pt

FY15 CY Loss Ratio

75.9%

FY16 CY Loss Ratio

62.6%

Other1

+0.3pt


+1.5pts

Price effect

-1.2pts

Nat Cat

-0.1pt

FY15 CY Loss Ratio

62.1%

FY16 CY Loss Ratio

72.4%

Other1

-2.3pts


+1.6pts

Price effect

-1.0pts

Nat Cat

-0.5pt

FY15 CY Loss Ratio

74.6%

FY16 CY Loss Ratio

70.8%

Other1

-0.6pts


+1.6pts

Price effect

-1.9pts

Nat Cat

-0.2pt

FY15 CY Loss Ratio

71.9%

o/w Severity +2.3ptso/w Frequency -0.7pt

o/w Turkey-2.3 pts

o/w Turkey+1.6 pts


P&C | Focus on reserve developments

Prior year reserve development level(in % of gross earned premiums)

Reserving ratio (Net technical reserves/Net earned premiums)

FY16**

1.2%

1H16

2.1%

FY15*

1.4%

1H15

1.8%

FY14

0.6%

1H14

1.3%

FY13

1.2%

1H13

1.8%

FY12

1.2%

1H12

2.1%

FY11

1.7%

1H11

2.0%

FY10

3.1%

1H10

4.5%

FY09

5.4%

1H09

6.0%

FY08

5.4%

FY07

2.7%

FY06

1.4%

FY05

0.9%

FY161H16

198%

FY15*

194%

1H15

199%

FY14

188%

1H14

199%

FY13

185%

1H13

195%

FY12

186%

1H12

195%

FY11

187%

1H11

196%

FY10

186%

1H10

199%

FY09

187%

1H09

198%

FY08

187%

FY07

194%

FY06

186%

FY05

193% 192%

Information related to FY13 was restated for the retrospective application of the new IFRS standards on consolidation. FY04 to FY12 figures were not adjusted for this changeNote: FY04 to FY09 figures do not exclude Canadian operations

*FY15 figures have been restated to include the reclassification of International Insurance activity in the Property & Casualty segment**FY16 figures include the reclassification of International Insurance activity in the Property & Casualty segment

Health


Health | Revenues

FY16 Health revenues FY16 Health revenues by country

In Euro billion

France28%

UK15%

Japan12%

EMEA-LATAM9%


+4%

FY16

11,959

FY15 restated

12,010

In Euro million

Germany24%

Asia6%

Others1

5%

1. Other includes Belgium, Italy, Spain, the US, Direct and AXA Assistance

-0.2pt

FY16

94.9%

FY15 restated

95.1%

Combined ratio Euro 12.0 billion

Asset Management


ASSET MANAGEMENT | Underlying Earnings

Details of Asset Management margin analysis

Margin1 Expenses1

In Euro million In Euro millionFY16 Change2 FY16 Change2

1. Margin and expenses are calculated gross of intercompany eliminations to help reconcile with disclosure on page 20 of FY16 Financial Supplement.

2. Changes are on a comparable basis for activity indicators (constant Forex, scope and methodology), and at constant Forex for earnings

3. Or Euro 3,261 million net of intercompany eliminations4. Tax rate increased to 34% in FY16 vs. 29% at FY15

3

+15%

Minority int.& other

211 -6%

Underlying earningsEuro 416 million -8%

316

Pre-tax underlying earningsEuro 943 million +1%

Tax4

-13%

Distribution revenues 686 -10%

Investment result -22 +78% Distribution expenses 674

-1%Asset Management fees 3,501 -1% Asset Managementexpenses

2,547

+ -

-


ASSET MANAGEMENT | Underlying Earnings

Details on Asset Management revenues

Changes are on a comparable basis1. Average AUM for AXA IM is calculated excluding the contribution from joint ventures

1

31 bps 0 bps


o/w performance fees Euro 78 million (11%)

Euro 1,059 billion -1%

In Euro billion

AUM at FY15 1,124Net inflows +45

o/w AllianceBernstein -12o/w AXA IM +56

Market +44Forex +6Scope & other -15AUM at FY16 1,203

Average management fees on Average Assets under Management

Assets Management fees

Average Assets under Management1o/w research services fees Euro 434 million (-3%)

x

Balance Sheet


BALANCE SHEET

GENERAL ACCOUNT INVESTED ASSETS B451.1 Government bonds and related B461.2 Corporate bonds B491.3 Asset backed securities B531.4 Equity B541.5 Real estate B561.6 Hedge Funds B571.7 Private Equity B581.8 Mortgage loans B59

FOCUS ON NET UNREALIZED CAPITAL GAINS B60

ASSET LIABILITY MANAGEMENT B61

NET FINANCIAL DEBT AND ADJUSTED ROE B63

SOLVENCY II B65

LIFE & SAVINGS VALUE B68

LIFE & SAVINGS IRR AND OPERATING FREE CASH FLOWS B69

1

234

67

5


AXAWinterthur

Changes in asset mix

Yields: positive impact linked to decrease in interest rates on fixed income assets

Forex: positive impact from the depreciation of Euro against all major currencies, except GBP

1. Mortgage loans & other include residential loans (Euro 12 billion), commercial & agricultural loans (Euro 21 billion) and Agency Pools (Euro 1 billion)2. Mainly Private Equity and Hedge Funds3. FY16 invested assets referenced in page 52 of the financial supplement are Euro 788 billion, which include notably Euro 175 billion of Unit-linked assets and Euro 35

billion related to the banking segment

GENERAL ACCOUNT INVESTED ASSETS1

Invested assets (100%) FY15in Euro billion Published

Fixed income 457 83% 485 83%

o/w Govies and related 225 41% 236 40%

o/w Corporate bonds 190 34% 202 35%

o/w Asset backed securities 10 2% 13 2%

o/w Mortgage loans & other 1 31 6% 34 6%

Cash 24 4% 23 4%

Listed equities 20 4% 19 3%

Real Estate 28 5% 30 5%

Alternative investments2 18 3% 20 3%

Policy loans 6 1% 6 1%

Total Insurance Invested Assets3 552 100% 583 100%

%% FY16


GOVERNMENT BONDS AND RELATED1.1

Supranational Institutions4%

Spain6%

Switzerland6%

Other7%

Belgium8%

Austria3%

Italy10%

P&C10%

L&S90%

Japan13%

France20%

As of December 31, 2016

Germany10%US

9%

Ireland1%

In Euro billion

Netherlands2%

FY16

40.9

FY15

37.4

1. Gross of tax and policyholders’ participation

Breakdown by geography Breakdown by segment

Gross1 unrealized capital gains and losses

Euro 236 billion


GOVERNMENT BONDS AND RELATEDFOCUS ON EXPOSURE TO EUROZONE PERIPHERAL COUNTRIES

1.1

Exposure by issuer

Gross book value Gross market value Gross book value Gross market value

December 31, 2015 December 31, 2015 December 31, 2016 December 31, 2016

Italy 18.5 22.6 20.6 23.0

Spain 12.1 14.6 11.9 15.0

Ireland 3.2 3.6 2.7 3.3

Portugal 0.4 0.5 0.4 0.4

Greece 0 0 0.0 0.0

TOTAL 34.1 41.4 35.6 41.7

in Euro billion


Energy6%

CORPORATE BONDS1.2

Financials5%

Utilities8%

Basic materials4%

Industrials8%

P&C17%

L&S83%Consumer cyclical

6% Banks37%


Consumernon-cyclical

13%

In Euro billion

Other5%

FY16

8.0

FY15

7.8


Breakdown by industry Breakdown by segment


Communications8%

Euro 202 billion


CORPORATE BONDS BREAKDOWN BY ENTITY AND RATING(including CDS)

1.2

P = Participating NP = Non-participating

1. Including Asia (excl. Japan), Direct P&C excluding Direct Japan, EMEA-LATAM, Italy, Spain and UK2. Not rated by external rating agencies. Under AXA’s internal ratings: AAA: Euro 0.3 billion / AA: Euro 1.4 billion /

A: Euro 3.0 billion / BBB: Euro 4.7 billion / Below investment grade: Euro 2.9 billion

In Euro billion

As of December 31, 2016 P NP P NP P NP P NP P NP P NP P NP P NP

AAA 2.5 1.1 0.0 0.3 0.1 0.1 8.4 1.1 6.4 1.0 - 0.8 0.2 0.3 17.7 4.7AA 4.3 2.0 0.5 3.4 0.6 0.6 4.8 0.6 2.1 0.5 - 2.5 2.0 1.4 14.3 10.8A 10.9 4.9 1.7 11.0 1.5 1.3 5.5 1.5 7.4 1.1 - 5.7 6.1 4.1 33.1 29.6BBB 12.7 6.3 1.1 11.7 1.5 2.2 5.7 1.8 9.6 1.5 - 3.1 5.1 4.2 35.7 30.7Below Investment Grade 2.5 1.8 0.1 1.0 0.0 0.8 1.8 0.6 1.9 0.4 - 0.5 0.6 1.0 7.0 6.1

Non rated2 1.3 0.8 0.0 0.3 0.1 0.8 1.3 0.4 1.6 0.4 - 1.1 1.7 2.3 6.2 6.1

Total 34.3 16.9 3.5 27.6 3.7 5.9 27.6 6.1 29.1 4.8 - 13.6 15.7 13.3 113.9 88.1

Japan Other1 TotalFrance US Belgium Germany Switzerland


FOCUS ON BANKING CORPORATE BONDS

1. Banking Corporate bonds not rated by external rating agencies have been reallocated under AXA’s internal rating: AAA: Euro 0.1 billion / AA: Euro 1.0 billion / A: Euro 0.9 billion / BBB: Euro 2.1 billion / BIG: Euro 0.7 billion

2. More than 30 countries

1.2


Gross market value

in Euro billion Secured Non secured Lower Tier 2 Upper Tier 2 Tier 1 Preferred

By rating:AAA 20.9 0.7 0.0 0.0 0.0 0.0 21.6

AA 6.7 7.8 0.2 0.0 0.0 0.0 14.7

A 3.2 19.8 2.0 0.0 0.0 0.0 24.9

BBB 0.6 7.8 3.5 0.2 0.0 0.0 12.2BIG1 0.2 0.6 0.5 0.2 0.1 0.0 1.6

Total 31.5 36.8 6.2 0.4 0.1 0.0 75.0

By Country:Germany 7.7 1.3 0.7 0.4 0.0 0.0 10.0

France 4.3 3.4 2.4 0.0 0.0 0.0 10.2

United States 0.2 12.6 0.5 0.0 0.0 0.0 13.3

Netherlands 1.1 2.6 0.4 0.0 0.0 0.0 4.0

UK 1.4 2.8 0.7 0.0 0.0 0.0 4.9

Spain 2.5 1.1 0.5 0.0 0.1 0.0 4.1

Australia 1.7 2.4 0.5 0.0 0.0 0.0 4.6

Italy 0.9 1.3 0.0 0.0 0.0 0.0 2.3

Switzerland 7.3 2.2 0.0 0.0 0.0 0.0 9.5

Sweden 0.3 1.7 0.2 0.0 0.0 0.0 2.3

Austria 0.4 0.1 0.0 0.0 0.0 0.0 0.5

Norway 0.5 0.3 0.0 0.0 0.0 0.0 0.8

Other2 3.2 5.2 0.2 0.0 0.0 0.0 8.6

Total 31.5 36.8 6.2 0.4 0.1 0.0 75.0

Senior Debt Subordinated Debt Total


Representstotal market value of

Euro 48 million

CDS mainly used as alternative to investment grade corporate bonds• Net CDS exposure excluding NBT strategy mainly corresponds to an “overlay” strategy

(synthetically replicate corporate bonds by selling CDS on top of government bonds to enhance return)

• NBT strategy: buy credit derivatives on corporate names to form negative basis tradeCDS also used to get liquid exposure to local sovereign risks

FOCUS ON CDS1.2

Government bonds

and related

Net CDS exposure excl. NBT strategy NBT strategy Total Total

Net notional as of Net notional as of Net notional as of Net notional as of

December 31, 2016 December 31, 2016 December 31, 2016 December 31, 2016AAA 0.0 0.0 0.0 1.8

AA 1.7 0.0 1.6 -1.7

A 3.5 -0.1 3.3 0.4

BBB 3.4 -0.7 2.7 0.0

Below investment grade 0.0 -0.3 -0.3 0.0

Non rated 1.9 -0.3 1.6 0.0

Total 10.4 -1.5 8.9 0.4

Corporate bonds

in Euro billion


ASSET BACKED SECURITIES1.3

Prime Residential3%

Commercial MBS4%

CDO1%

Consumer ABS2

1%

CLO86%


1. Including debt and equity tranches of ABS2. Mainly consumer loan ABS (plus some leases and operating ABS assets)

Breakdown by asset type1 Breakdown by rating

Below investment grade6%

BBB2%

A10%

AAA56%

AA23%

Non rated/Equity3%

Mortgage-backedOther asset-backed

US Subprime, Alt-A & NC RMBS

5%

Euro 13 billion


France22%

LISTED EQUITY PORTFOLIO OVERVIEW1.4

Other Eurozonecountries9%

Switzerland5%

UK4%

Rest of the World15%

Belgium6%

P&C22%

L&S78%

Holdings1%

Japan7%

US23%

Germany8%

In Euro billion

FY16

3.5

FY15

3.4


Breakdown by geography Breakdown by segment



Euro 19 billion


SHAREHOLDERS’ EXPOSURE TO LISTED EQUITY1.4

FY15

8

20

Gross nominal 100%

Group share net of hedge,

tax & PB

FY16

7

19

Gross nominal 100%

Group share net of hedge,

tax & PB

Estimated shareholders’ exposure to listed equity(in Euro billion)


Japan1%

1.5

UK6%

Germany9%

Other Eurozone countries7%

Belgium10%

France28%

Switzerland37%


Breakdown by geography

REAL ESTATE INVESTMENTSDefensive portfolio with good performance over the long term

1. Representing Euro 3.8 billion of unrealized gains off balance sheet, net of tax and PB2. The assets in scope exclude those held directly by the French Mutual funds and the non-Main

Fund unit linked holdings, as well as CRE loans.

P&C19%

L&S81%

Breakdown by segment

Breakdown by type and geography

Portfolio Yield from Rental Income ~ 3.8%

Market value1,2

Euro 30 billion

US2%

France Switzerland Germany Belgium Others

Office 38% 42% 43% 73% 57%

Residential 13% 49% 5% 0% 5%

Retail 36% 0% 16% 22% 18%

Others 13% 9% 36% 5% 20%


HEDGE FUND INVESTMENTSDiversified portfolio of hedge funds

1.6

AXA portfolio return drivers

Alternative Credit : 9 managers

Well diversified exposure

Alternative Credit program

67%

Multi-Strategy program33%

Multi-Strategy : 19 managers

Short dated carry57%Deep value credit

14%

Real asset cash flow11%

Relative value credit17%

• Alternative Credit program: 2016 performance for 2016 wherecarry-driven strategies performed as expected and the deepvalue bucket exceeded expectations.

• Multi-Strategy program: focus on low volatility and uncorrelatedreturns. Annual performance exceeded benchmarks for hedgefund industry.


Source: AXA IM

EQMN –Discretionary

18%

EQMN -Systematic

10%

Distressed & credit11%Relative value &

multi-strategy25%

Merger Arbitration3%

Global macro14%

Fixed income arbitrage19%

Market valueEuro 6 billion


Europe61%

1.7

US31%

Other6%


Breakdown by geography Breakdown by expertise

Diversified portfolio

PRIVATE EQUITY INVESTMENTSDiversified portfolio built over the long run

16%Infrastructure

12%Private debt

4%Venture

68%Buy-out

Japan2%

56%Funds of funds

44%Direct

Market valueEuro 9 billion


MORTGAGE LOANS & OTHERLow risk mortgage loan portfolio

1.8

1. Excluding Banking operations2. Excluding Euro 1 billion of Agency pools (Mortgage-backed securities issued by US Government Sponsored Enterprises)

21%Germany

28%United States

13%

87% Residential

Commercial

74%

26%

95%

5%

51%

49%

Commercial

Agricultural

Very secured portfolio:

FY16 default rate

FY16 loan to value0.08%

54%

9%France

Residential

Commercial

35%Switzerland

Residential

Commercial

FY16 market value by entity1

Switzerland35%

Germany21%

France9%

Other7%

US28%


Market value2

Euro 33 billion


FOCUS ON NET UNREALIZED CAPITAL GAINS2

1. Including ABS, alternative investments, other assets, minorities and equity methods

Balance sheet net unrealized capital gains

Off balance sheet net unrealized capital gains

In Euro billion In Euro billion

FY16

14.6

11.2

2.01.6

FY15

12.8

9.5

1.61.7

Government bondsand related

Corporate bonds

Equities & Other

FY16

4.2

FY15

5.31

Net unrealized capital gains on Government bonds and related by issuer

2.2

Germany

0.9

France

3.2

Other

0.2

Eurozone peripheral countries

0.9

Japan

2.9

Switzerland

0.7

Belgium


Inforce business New business

Products sold in combination with higher margin Unit-Linked business (hybrid2 sales)

FY16



Spread above guaranteed rates

Spread above guaranteed rate

FY16



+140 bps

1.9%

3.3% +140bps

0.4%

1.8%

Guidance: 65-75 bps

Resilient investment margin1

FY16

73 bps

FY15

79 bps

Significant buffer to cover guarantees and to manage crediting rates to preserve investment margin

Average reserves of Euro 363 billion

ASSET & LIABILITY MANAGEMENT (1/2)Life & Savings General Account investment spreads and margin

All notes are on pages A51 of this document

3


3 ASSET & LIABILITY MANAGEMENT (2/2)L&S General Account investment spreads for main entities

140bps

2.8%4.2%

Belgium

AXA MPS



• Average G/A reserves: Euro 24 billion• Emphasizing new hybrid products, using

G/A to develop Unit-Linked

• Average G/A reserves: Euro 12 billion• Emphasizing hybrid products and

Protection businesses


0.7%

3.8%

0.0%

1.9%

4bps

3.4%3.4%110bps

0.9%2.0%

80bps

0.9%1.7%

FY16

120bps

1.6%2.8%

1.4%

120bps

0.2%

FY16

Germany

• Average G/A reserves: Euro 60 billion• Asset portfolio with long investment

horizon and with limited reinvestments in Bunds

France • Average G/A reserves: Euro 105 billion• G/A Savings new business sales with

long term guarantees stopped in 1998

Switzerland• Average G/A reserves: Euro 58 billion• Protection components making products

very profitable

80bps

1.9%1.1%

0.3%

60bps

0.9%

310bps 190bps

New businessInforce

FY16 FY16

FY16 FY16

FY16 FY16

FY16 FY16


NET FINANCIAL DEBT - LONG-TERM MATURITIES

Net financial debt Contractual maturity breakdown

Economic maturity breakdown

Undated

5.1

3.0

3.4

2026-2040

3.3

0.8

2021-2025

0.3

2020

0.4

201920182017

1.8

Undated

0.91.8

0.1

2026-2040

2.00.2

4.4

0.8

2021-2025

1.01.0

1.0

0.3

2020

1.7

2019

0.3

2018

0.7

2017

0.31.8

TSDI = undated subordinated notesSubordinated debtSenior debt

TSS = undated deeply subordinated notes

4

1. Including Euro +1.3 billion of reversal of mark-to-market on interest rates derivatives in FY16 vs.Euro -0.6 billion in FY15

In Euro billion

Debtgearing 26% 26%

In Euro billion

In Euro billion

FY16

18.3

1.1

9.1

8.1

FY15

17.0

0.6

6.9

9.5

Subordinated debt1

Senior debt

Undated subordinated debt

0.1

0.1


ADJUSTED ROE

In Euro millionFY15

published

FY16

Adjusted earnings 6,008 6,103

Interest charges on undated debt -305 -267

Average adjusted shareholders’ equity 40,303 43,352

Adjusted ROE 14.1% 13.5%

4


SOLVENCY II RATIO

Required capital

Available capital

FY16

29.4

57.9

FY15

28.8

59.2

Solvency II ratio 205% 197%

FY16

197%

Subordinated debt, forex & other

-4 pts

Market impact excl. forex

-14 pts

Dividend

-10 pts

Operatingreturn

+19 pts

FY15

205%

In Euro billion

Key sensitivities

Solvency II ratio roll-forward

+3 pts

-9 pts

-1 pt

+6 pts

-7 pts

Solvency II ratio

Equity markets -25%

Corporate spreads +75bps

Interest rate -50bps

Interest rate +50bps

Ratio as of December 31, 2016

Equity markets +25%

197%

200%

188%

196%

203%

190%

5


SOLVENCY II REQUIRED CAPITALSPLIT BY RISK. GEOGRAPHY & BUSINESS

26%

Life & Savings

54%

Asset Management & Banking

4%Holdings & Other

16%

Property &Casualty

Operational

5%Counterparty

8%

P&C 20%

Life

25%

Market41%

3%

Asset Management & Banking

8%

UK

4%Belgium

Italy, Spain, EMEA6%

Germany8%

US9%

Switzerland

10%

Asia (incl. Japan)

13%

France17%

Holdings & Other20%

Required capital by risk

Required capital by geography

Required capital by business

5


SHAREHOLDERS’ EQUITY TO SOLVENCY II AFRIn Euro billion

5

71

58Available Financial

Resources(AFR)

Subordinated debt

Scope & others +1

+9

Best Estimate Liabilities +6

Intangible assets -33

Full market valueof assets +4

IFRSShareholders’ Equity1

Remove intangible assets • Goodwill (Euro -15 billion)• DAC (Euro -14 billion)• VBI and other intangibles (Euro -4 billion)

Move to Best Estimate Liabilities• Difference between IFRS reserves and Best Estimate Liabilities

(Euro +16 billion)• Market Value Margin (Euro -10 billion)

Move to full market value of assets• Real estate (Euro +3.7 billion)• Loans (Euro +0.2 billion)• Other (Euro -0.3 billion)


L&S AFR AND NBV- KEY SENSITIVITIES

L&S New Business Value (NBV) sensitivities

Interest rates volatility +25% 2,483

Equity markets’ volatility +25% 2,575

Equity markets -10% 2,545

Equity markets +10% 2,709

Interest rate -50 bps 2,490

Interest rate +50 bps 2,664

L&S NBV as at Dec 31, 2016 2,623

Equity markets’ volatility +25%

43.9Interest rates volatility +25%

Equity markets -10% 43.8

Equity markets +10% 46.0

44.6

Interest rate -50 bps 44.2

Interest rate +50 bps 45.3

Insurance AFR 45.1

6

In Euro billion In Euro million

+0.2 | 0%

-0.9 | -2%

+0.9 | +2%

-1.3 | -3%

-0.5 | -1%

-1.2 | -3%

+41 | +2%

-133 | -5%

+86 | +3%

-78 | -3%

-48 | -2%

-140 | -5%

L&S AFR sensitivities


LIFE & SAVINGS INTERNAL RATE OF RETURN (IRR) BY COUNTRY7

In Euro million APE NB IRR

FY15 restated

1,760

1,656

418

864373 313 100

560

1,171

7,376

18.4%

17.3%

4.7%

12.9%

17.0%20.0%14.5%19.1%

33.2%

25.9%

17.5%

1,767

1,656

935

418

864373 313 100

560

1,171

7,376

APE NB IRR

FY16

18.4%

17.3%

4.7%

12.9%

17.0%20.0%14.5%19.1%

33.2%

25.9%

17.5%

TBU

France 1,760 18.4% 1,824 20.2%

US 1,656 17.3% 1,732 15.7%

Japan 418 12.9% 499 13.4%

Germany 373 20.0% 382 20.4%

Switzerland 313 14.5% 301 10.7%

Belgium 100 19.1% 55 14.0%

Italy 405 26.0% 300 34.0%

Spain 84 36.0% 86 31.9%

EMEA-LATAM 148 14.8% 118 14.9%

Hong Kong 525 22.8% 536 23.0%

South East Asia, India & China 646 34.3% 754 18.7%

Total 6,464 18.9% 6,600 17.8%


OPERATING FREE CASH FLOW BY SEGMENT

FY16 Life & Savings FCFOperating Free Cash Flows

0%

Asset Management, Banking & Other

Property & Casualty

Life & Savings

FY16

6.2

0.5

2.7

2.9

FY15 restated

6.2

0.6

2.6

3.1


2,956

Operating Free Cash

Flow

2,945

Expected change in

required capital

-11

Expected statutory earnings

FY16 Property & Casualty FCF

Operating Free Cash

Flow

2,734

Change in required capital

-140

Earnings contribution

2,874

7


In Euro millionFY15restated FY16

1. L&S Operating Free Cash Flow based on Solvency II only for EEA entities

LIFE & SAVINGS OPERATING FREE CASH FLOW BY COUNTRY7

France 864 918

US 657 614

Japan 257 234

Germany 174 140

Switzerland 328 362

Belgium 211 137

Italy 117 168

Spain 56 108

EMEA-LATAM 80 48

Asia excl. Japan 280 216

Other 36 1

Total 3,060 2,945


Expected undiscounted cashflows from 2016 inforce1 business

In Euro billion In Euro billion

25

20

15

10

5

0>3531-3526-3021-2516-2011-156-101-5

0.0

-0.5

-1.0

1.5

1.0

2.0

0.5

-1.5

-2.0

2.5

2016

1-5 6-10 11-15 16-20 21-25 26-30 31-35

Expected undiscounted cash flowsfrom 2016 New Business

LIFE & SAVINGS FREE CASH FLOW EMERGENCE FROM INFORCE AND NEW BUSINESS

7

>35

Above cash flows are expected to be improved by inforce management initiatives of the company. in particular:• Actions to improve value of the existing book• Actions to release more capital from the existing book

Euro 22 billion undiscounted free cash flows expected to be released from 2016 inforce1 over 5 years

1. Including 2016 new business, to be released from January 1, 2017 onwards

Corporate Responsibility


12th overall / worldwide and 1st insurer by number of SRI funds in its capital (Ipreo, Q2 2016)

MAIN SRI RATINGS

N°2 out of 150 insurance companies

Score: 87/100

Ranked “A+” in the 2016 “Assessment Report”

(Responsible Investment strategy)

Included in the FTSE4GOOD index since 2008

Score of AAA

2016 Sector leader, Included in

Vigeo Euronext indices

Score: 85/100Percentile ranking: 95/100

Now accounts for 10% of AXA employee’s performance shares

attribution


“ESG + CARBON” INTEGRATION

Long-term ESG integration process: gradual and systematic integration of tangible ESG factors in AXA’s investment mandates

Development of specific measurement tools

X3 Green investments to reach Euro 3 billion by 2020.

Coal divestment: Euro 500 million, coal mining and coal-based power generation.

“Article 173” : #1 award in the “Best Investor Climate-Related Disclosures” contest

FSB TCFD Vice-Chair

First insurer to join Carbon Pricing Leadership Coalition (World Bank)

Chairmanship of the EU Commission’sHigh Level Expert Group on SustainableFinance

SECTOR GUIDELINES & EXCLUSIONS

ESG Footprint Committee: ad-hoc exclusions and/or engagement for worst ESG performers

Implementation of investment guidelines for sectors with acute environmental or social / ethical challenges

Current sector exclusions (applied to both investment and insurance business):

Controversial weapons

Coal-based energy production & coal extraction

Palm oil production

Food commodity derivatives

TobaccoIn 2016, as a responsible health insurer and investor, the AXA Group has decided to divest its tobacco industry assets, representing Euro 1.8 billion in equity and corporate bonds

IMPACT INVESTING

Two “impact investment” funds

Impact Fund 1: inclusion, health, education

Impact Fund 2: environmental & social resilience

€200M each

Creating both financial returns and positive social or environmental impacts that are actively measured

Impact KPIs examples (Fund 1): 79 million underserved customers reached; 15,8 million micro-insurance policies distributed; 1,39 million tones of CO2 emissions saved

€155M renewable energy fund managed by Ardian Investments

RESPONSIBLE INVESTMENTS STRATEGY

AXA FY16 Earnings Presentation...A8 | Full Year 2016 Earnings | Presentation | February 23, 2017 L&S...

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Transcript of AXA FY16 Earnings Presentation...A8 | Full Year 2016 Earnings | Presentation | February 23, 2017 L&S...