AXA | Goldman Sachs European Financials … Sachs European Financials Conference ... this...

AXA

Paul Evans – CEO AXA Global Life, Savings & Health and

AXA Global Asset Management

Goldman Sachs

European Financials Conference | Madrid

June 7, 2017

Certain statements contained herein may be 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 and can be affected

by other factors that could cause actual results and AXA’s plans and objectives to differ materially from those expressed or

implied in the forward looking statements. Please refer to Part 4 - “Risk factors and risk management” of AXA’s Annual

Report for the year ended December 31, 2016, for a description of certain important factors, risks and uncertainties that

may affect AXA’s business, and/or results of operations. 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.

In addition, this presentation refers to certain non-GAAP financial measures, or alternative performance measures, used by

management in analysing AXA’s operating trends, financial performance and financial position and providing investors

with additional information that management believes is useful and relevant regarding AXA’s results. These non-GAAP

financial measures generally have no standardized meaning and therefore may not be comparable to similarly labelled

measures used by other companies. As a result, none of these non-GAAP financial measures should be considered in

isolation from, or as a substitute for, our GAAP financial measures. The non-GAAP financial measures used in this

presentation are defined in the glossary set forth in Appendix VI (p. 458-461) of AXA’s Annual Report for the year ended

December 31, 2016.

3 | AXA | Goldman Sachs European Financials Conference | Madrid | June 7, 2017

CONTENTS

AXA at a glance

1Q17 results highlights

Focus on Health


AXA GROUP – TRULY DIVERSIFIED BUSINESS PROFILE

Diversified earnings by geographies

25%France16%

Asia

8%Others

Euro

5.7 billion

34%Other Europe

17%US

34%Savings &

Asset Management3

27%Protection& Health

39%Property & Casualty

Diversified earnings by business lines

Euro

7.9 billion

pre-tax

FY16 Underlying Earnings1 FY16 pre-tax Underlying Earnings2

All notes are on pages 18-19 of this presentation


AXA GROUP – STRONG AND RESILIENT BALANCE SHEET

Solvency II ratio in the middle of the target range Strong financial strength ratings

AA- stable

Aa3 stable

AA- stable

Equity markets

+25%

Equity markets

-25%

Ratio as of

December 31, 2016

Interest rate

-50bps

Corporate spreads

+75bps

Interest rate

+50bps

197%

+3 pts

-9 pts

-1 pt

+6 pts

-7 pts

170% 230%

Target

range

No use of transitional measures


EUROPE: EXCELLENT POSITIONING AND TRACK RECORD

Zurich

-4%

Generali

-1%

Allianz

2%

AXA

3%

L&S: best in class business mix and NBV margin

FY16 new business (APE) split by products in Europe

21% 22%22%

39%26%

16%

36%17%

Allianz

(VNB)2

16%

24%

AXA1

8%

18%

51%

Zurich4

25%

Generali3

P&C: growth with profitability potential

ZurichAXA

92%

95%

92%

Generali

95%

Allianz

2010 – 2016 GWP CAGR9

FY16 Combined ratio9,11FY16 NBV margin in Europe

Capital

light G/A

Unit

Linked

Protection

& Health

Traditional

G/A

38%

Zurich8

16%

AXA5

27%

Generali7Allianz

(VNB)6

18%

58%

Top 5

position108 / 8 6 / 8 1 / 8 2 / 8



US: BUSINESS TURNAROUND GENERATING HIGHER EARNINGS

Redesigned business mix

APE split by products

Improved earnings profile

Underlying Earnings in Euro millions

FY16 30%

31% 12% 19% 10% 25% 2%

FY08 22% 15% 15% 48%

10% 22% 20% 16% 2%

FY15

Retirement Plan Services Non-GMxB VA

Life

Mutual Funds & Other

Fixed rate GMxB VA

Floating rate GMxB VA

New Non-GMxB VA1

FY15

restated2

834

FY14

760

FY13

559

FY16

905



ASIA: FAST GROWING PROFITABLE PLATFORM

Strong earnings growth from the Asian franchise

2011 - 2016 Earnings1 CAGR

A unique positioning versus major EU peers

FY16 Earnings contribution to the group from Asia

15%

AIA4

16%

Prudential plc3

16%

AXA2

#1international P&C insurer5

#3 international L&S insurer51%

10%

Generali8Allianz6

1%

AXA2

5%

Zurich7

FY16 NBV contribution to AXA from Asia2

24%NBV from Asia

Total NBV

Euro

2.6 billion



1Q17 TRENDS – IN LINE WITH OUR STRATEGIC PRIORITIES

Changes in comparable basis

+3%P&C Commercial Lines

revenues growth

+7%Health

revenues growth

+1%L&S APE growth +25%

L&S NBV growth in Asia(excl. Japan)

Growth in preferred segments

Growth in

preferred

segments

+4%L&S NBV growth


HEALTH IS KEY TO MOVE FROM PAYER TO PARTNER

“My health

expenses are

covered”

HEALTH

INSURANCE BASICS

Euro 7.7 billionbenefits paid

CARE

COORDINATION

“My healthcare is

managed well”

3 millionbeneficiaries of the online consultation

system in France

WELL-BEING

“AXA helps

me focus on

my well-being

and future

health”

130,000+registered users on AXA Wellbeing

platforms (+58%)


AXA: WELL ESTABLISHED HEALTH PLAYER

Euro 12 billion Gross revenues

94.9%Combined ratio

FY16 figures FY16 gross revenues by geography

France (28%)

Germany (24%)

UK (15%)

Japan (12%)

EMEA-LATAM (9%)

Asia (6%)

Others1 (5%)

Health insurance at AXA Global reach

60.0%NBV margin



HEALTH AT AXA: DEEP EXPERTISE IN LOCAL MARKETS (1/4)

#2 ranking1

95.7%CoR

€1.8bn P&C GWP

Scale advantaged

procurement

Pathways & teleconsultation

Health Gateway

AXA’s positioning AXA’s key strengths

Substitutive

Acute only

Annually renewable




#4 ranking1

96.5%CoR

€2.9bn L&S GWP

Market leading service

platform

Disease management

Well-being platform to be

launched in 2018


Substitutive &

supplementary

Comprehensive

Lifetime level premium




#1 ranking1

98.7%CoR

€3.4bn L&S GWP

Optical and dental network

Teleconsultation

Well-being platform to be

launched in 2018


Supplementary

Comprehensive

Annually renewable




#13 ranking1

71.7%CoR

€1.4bn L&S GWP

Workplace distribution

agency

New care coordination

products to be launched in

2017

Health & Productivity

management – unique

government partnership


Supplementary

Hospital cash plan

Lifetime level premium



PULLING OUR STRENGTHS TOGETHER TO EXPAND IN NEW MARKETS

+7% GWP growth in 1Q17

AXA continues to innovate in

its well established marketsAXA transfers expertise to other

countries to build Health presence

6 strongholds Initial expansion targets identified

& Gulf region

Thank You


NOTES (1/2)

Page 4:

1. Geographical split based on Underlying Earnings before holding costs. France includes AXA IM, Other Europe includes Banking, Asia includes Japan, US includes AB. Total Underlying earnings is net of holding costs.

2. Business lines split based on Pre-tax Underlying Earnings before holding costs. Total Pre-tax Underlying Earnings is net of holding costs.

3. Includes G/A Savings, Unit-Linked, Mutual funds & other, and Banks.

Page 6:

1. APE split excluding Mutual Funds & Other. Scope: France, Germany, Switzerland, Belgium, Italy and Spain.

2. Allianz (Value of New Business) split by products – Guaranteed Savings & Annuities (Traditional G/A), Protection & Health, Unit Linked without guarantees, capital efficient (Capital Light G/A). Scope: German speaking

countries and Western and Southern Europe. Value of new business: The additional value for shareholders created through the activity of writing new business. It is defined as present value of future profits after

acquisition expenses overrun or underrun, minus time value of financial options and guarantees, minus risk margin, all determined at issue date.

3. Generali split by products – Savings (Traditional G/A), Protection and Unit Linked. Scope: Italy, France, Germany and Rest of Europe excluding CEE. No disclosure on Capital light G/A.

4. Zurich split by products – Savings and annuity products (Traditional G/A), Protection (Protection and Health), Unit Linked, Corporate pensions (Capital light G/A). Scope: Total Group.

5. NBV/APE as reported for France, Germany, Switzerland, Belgium, Italy and Spain.

6. VNB/APE for German speaking countries and Western & Southern Europe. Value of new business: The additional value for shareholders created through the activity of writing new business. It is defined as present

value of future profits after acquisition expenses overrun or underrun, minus time value of financial options and guarantees, minus risk margin, all determined at issue date.

7. NBV/APE as reported for Italy, France, Germany and Rest of Europe excluding CEE.

8. NBV/APE as reported for the Group.

9. Scope: AXA – P&C mature markets (excl. Canada for FY10), Direct, and AXA Assistance, Allianz – German speaking countries excl. CEE, Western and Southern Europe, Iberia, United Kingdom, Ireland and Credit

Insurance, Zurich – EMEA, Generali – Italy, France, Germany, EMEA and International operations.

10. Source: Axco Global Statistics (Latest figures). European markets: France, Germany, Switzerland, Belgium, Spain, Italy, UK, and Ireland.

11. Combined ratio as reported in FY16 for the scope mentioned in note 9.

Page 7:

1. New non-GMxB Variable Annuity includes: Investment Edge and Structured Capital Strategies.

2. FY15 restated: reclassification of AXA Liabilities Managers Accident & Health from the International Insurance segment into the United States Life & Savings operations.

Page 8:

1. Underlying earnings for AXA, IFRS operating profits for Prudential plc, and Operating profit after tax for AIA. Changes on reported basis.

2. Scope: Asia excluding Japan.

3. Scope: Prudential plc – Asian operations excluding Eastspring. Source: Annual Reports

4. Scope: AIA – Total Group. Source: Annual Reports

5. Ranking sources : Asia Life and Savings : based on 2014 Asia ex-Japan life insurance premiums - Source: OCI, MAS, KLIA, TII, Plan for Life, ISI, CIRC, TLAA, LIAM, IRDA, BAPEPAMLK, PIC, IRI, company data,

Credit Suisse estimates; As published in Credit Suisse, Asia Life Insurance Sector, October 2, 2015; Asia P&C: based on 2012 Asia ex-Japan P&C insurance premiums. Source: OCI, MAS, KIDI, TII, APRA, ISI, IRI,

CIRC, OIC, Bank Negara, IRDA, BAPEPAMLK, PIC, AVI, company data, Credit Suisse estimates; As published in Credit Suisse, Asia P&C Insurance Sector, November 13, 2013.

6. Asia-Pacific L&S and P&C contribution to Operating profits. Source: FY16 Financial Supplement.

7. Asia-Pacific L&S and P&C contribution to Business Operating profits. Source: Supplementary information (unaudited) 2016.

8. Asia L&S and P&C contribution to Consolidated Operating results. Source: Generali FY16 Supplementary Financial Information.

Page 11:

1. Others include Belgium, Italy, Spain, the US, Direct and AXA Assistance.


NOTES (2/2)

Page 12:

1. Ranking source: Laing Buisson Health Cover UK Market Report 2016 (2015 data).

Page 13:

1. Ranking source: GDV (Gesamtverband der deutschen Versicherer) “Association of German Insurers” data base (2015 data).

Page 14:

1. Ranking source: “Argus de l’Assurance” (2015 data).

Page 15:

1. Ranking source: 2015 JGAAP Financial Statement of each company. In JGAAP, Health includes DI / LTC products which categorize as protection in AXA Group.

AXA | Goldman Sachs European Financials … Sachs European Financials Conference ... this...

Documents

Transcript of AXA | Goldman Sachs European Financials … Sachs European Financials Conference ... this...