AXA. Henri de Castries. Chairman & CEO. September 18, Sanford C. Bernstein s 11 th Annual Pan- European Strategic Decisions Conference

Transcription

1 AXA Henri de Castries Chairman & CEO September 18, 2014 Sanford C. Bernstein s 11 th Annual Pan- European Strategic Decisions Conference

2 Cautionary note concerning forward-looking statements 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 the section Cautionary statements in page 2 of AXA s Document de Référence for the year ended December 31, 2013, 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. 2 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

3 AXA at a glance As of Euro 50 billion revenues Euro 2.8 billion Underlying Earnings Euro 59 billion shareholders equity Euro 1.2 trillion assets under management 102 million clients in 56 countries 4 #1 global insurance brand 5 Global footprint 1 Asia 14% Northern, Central & Eastern Europe 30% Mediterranean & Latin American region 9% Protection & Health 6 25% Insurance Underlying Earnings 2 Diversified business mix Underlying earnings 3 International insurance 4% France 22% United States 14% United Kingdom & Ireland 4% Direct P&C 2% Property & Casualty and International Insurance 43% Savings & Asset Management 7 32% All notes are on page 14 of this document 3 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

4 Strong growth in earnings Underlying Earnings Adjusted Earnings In Euro billion +11% In Euro billion +8% Change is at constant Forex Change is at constant Forex In Euro Underlying Earnings per share +6% % adjusted for Forex effects In Euro billion Net income +25% Change is on a reported basis Change is at constant Forex 4 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

5 Selectivity Delivering profitable growth in 2014 Life & Savings Property & Casualty On track to grow APE in 2014 Portfolio growth In Euro billion 0% Personal net new contracts -178k +328k Var. +2% 2Q13 1Q13 2Q14 1Q14 +8% -6% Revenues In Euro billion Profitability enhanced by selectivity efforts Continuous improvement in profitability NBV margin 32% 34% CY combined ratio 97.5% 97.1% Underlying Earnings Euro 1.5bn Euro 1.7bn Underlying Earnings Euro 1.1bn Euro 1.2bn Changes are on a comparable basis 5 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

6 Acceleration Double-digit earnings development in high growth markets High growth markets In Euro million Change is at constant Forex Life & Savings Underlying earnings +19% Property & Casualty Underlying earnings +15% Focus on China In Euro million Change is on a comparable basis ICBC-AXA Life AXA-Tian Ping 1 39 APE Group share +21% Revenues +30% 364 Positive contribution to Underlying Earnings Revenues of Euro 0.9 billion at 1 All notes are on page 14 of this document 6 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014 Investing in brand, claims and pricing capabilities leveraging Group know-how 30% of premiums coming from Direct channel in, up from 20% in 2012

7 Efficiency On track to deliver an increased Euro 1.9 billion target In Euro billion Increased cost savings target E cost savings target (in mature Life & Savings and Property & Casualty entities) Further Euro 0.2 billion added to the target, from Life & Savings acquisition costs Sales support productivity improvement Marketing efficiency Initial target June 2011 Updated February 2013 Updated August 2014 Commissions optimization Achievement in Euro 0.2 billion cost savings achieved in Euro 1.3 billion achieved since the beginning of Ambition AXA 7 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

8 Performing well in a low interest rate environment resulting from key management actions Well diversified business mix reduces earnings volatility Ca. 70% of Group pre-tax Underlying Earnings 1 coming from Property & Casualty and Protection & Health 2, i.e. businesses less sensitive to financial markets Strong ALM discipline Ca. 1 year Duration gap maintained around one year between assets and liabilities (which are mostly long term in nature) Decreased sensitivities to low interest rate environment Ca. Euro -100 million Estimated impact on Underlying Earnings 3 should interest rates be 100bps lower for 1 year All notes are on page 14 of this document 8 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

9 Generating earnings and dividend growth In Euro per share Delivering on 5-10% Underlying EPS 1 CAGR 2 target FY10 FY11 FY12 FY Sustained growth in dividend In Euro million Guidance of Euro million of Net RCG 1 per year FY10 FY11 3 FY12 FY In Euro per share TBD Payout ratio of 40-50% of Adjusted Earnings 4 40% 49% 40% 40% FY10 FY11 3 FY12 FY13 FY10 FY11 FY12 FY13 FY14E All notes are on page 14 of this document 9 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

10 Ambition AXA Delivering on financial objectives in In Euro per share Underlying Earnings per share In Euro billion Group operating free cash flows in line with Ambition AXA objectives Ambition AXA CAGR Ambition AXA cumulative +5% to +10% Euro 24 billion 1H10 1H11 1H12 FY11 FY12 FY13 Adjusted return on equity 1 Debt gearing 12.4% 13.5% 13.8% 16.5% 16.8% 13-15% 29% 28% 27% 26% 24% 23-25% 1H10 1H11 1H12 Ambition AXA H10 1H11 1H E Target All notes are on page 14 of this document 10 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

11 AXA is positioning itself to succeed in a profoundly new world New challenges and opportunities for the insurance industry Multi-access and service delivery Data analytics, data protection, underwriting and pricing 11 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

12 Concluding remarks Strong increase in earnings across the board Deliver profitable growth Topline growth on track Accelerate growth through investment in brand and digital Performing well in a low interest rate environment Maintain strong discipline in capital and risk management Delivering on Ambition AXA financial objectives Offer an attractive dividend 12 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

13 Q&A session Q&A session 13 Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014

14 Notes Page 3 1. NORCEE (Northern Central and Eastern Europe L&S and P&C): Germany, Belgium, Switzerland, Luxembourg, Russia (P&C only) and Central & Eastern Europe (Poland (L&S only), Czech Republic, Hungary, Slovakia, Ukraine (P&C only)); MedLA (Mediterranean and Latin American Region L&S and P&C): Italy, Spain, Portugal, Greece, Turkey, Mexico, Morocco, Colombia and Gulf region (P&C only); Direct (P&C): AXA Global Direct (France, Belgium, Spain, Portugal, Italy, Poland, South Korea and Japan), UK Direct operations. Asia: Japan (L&S only), Hong Kong, Malaysia (P&C only), Singapore, Indonesia (L&S only), Thailand (L&S only), Philippines (L&S only), China (L&S only) and India (L&S only). 2. Including Life & Savings, P&C and International Insurance activities, and excluding AXA Life Invest Services, Architas and Family Protect 3. Pre-tax Half Year 2014 Underlying Earnings excluding holdings 4. As of December 31, Interbrand ranking G/A Protection & Health 7. Savings include G/A Savings, Unit-Linked, Mutual Funds & other Page 6 1. AXA-Tian Ping and ICBC-AXA Life are not included in Group revenues due to consolidation under equity method. Figures shown on the graph correspond to the period of January 1 to June 30 and are at 100% share. Acquisition of 50% of Tian Ping was completed on February 20, 2014 Page 8 1. Excluding holdings 2. Includes G/A Protection & Health, Property & Casualty and International Insurance 3. Estimated impact on Underlying Earnings from General Account only (G/A Savings, G/A Protection & Health and Property & Casualty) Page 9 1. Underlying EPS: Underlying Earnings per share; Net RCG: Net realized capital gains 2. Compound annual growth rate 3. Greek government bond impairment 4. Net of undated debt interest charges Page 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 Credits Page 12: Icons by Freepik.com are licensed under CC BY Sanford C. Bernstein s 11 th Annual Pan-European Strategic Decisions Conference September 18, 2014