Full year 2018 Appendices. February 21, 2019

Transcription

1 Full year 2018 Appendices February 21, 2019

2 IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations 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 AXA s actual results to differ materially from those expressed or implied in such forward-looking statements. Please refer to Part 4 - Risk factors and Risk Management of AXA s Registration Document for the year ended December 31, 2017, 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, except as required by applicable laws and regulations. In addition, these appendices refer to certain non-gaap financial measures, or alternative performance measures (APMs), used by Management in analyzing AXA s operating trends, financial performance and financial position and providing investors with additional information that Management believes to be 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, the Group s consolidated financial statements and related notes prepared in accordance with IFRS. A reconciliation from APMs Adjusted Earnings and Underlying Earnings to the most directly reconcilable line item, subtotal or total in the financial statements of the corresponding period is provided on pages 28 to 29 of AXA s 2018 Activity Report, which is available on AXA s website ( APMs Adjusted Return on Equity and Underlying Earnings per share are reconciled to the financial statements in the table set forth on page 37 of AXA s 2018 Activity Report, and Debt Gearing is reconciled to the financial statements in the table set forth on page 36 of AXA s 2018 Activity Report. The abovementioned and other non- GAAP financial measures used in these appendices, are defined in the glossary set forth in AXA s 2018 Activity Report (pp ). The results of our US segment are presented herein on the basis of IFRS and are not, and should not be relied upon as representing, the US GAAP results of AXA Equitable Holdings, Inc. (including AllianceBernstein), which, as a US public company, reports in US GAAP in accordance with the rules of the US Securities and Exchange Commission ( SEC ). For further information on AEH s financial results and other public reports please consult the SEC website at

3 Table of contents 1. GROUP OVERVIEW B.4 2. GEOGRAPHIES B PROFITABILITY ANALYSIS B BALANCE SHEET B CORPORATE RESPONSIBILITY B.65 B3

4 B1 Group overview

5 Revenues and underlying earnings by geography figures Revenues by geography Underlying earnings by geography International 6% Transversal 1 3% International 6% Transversal 1 5% US 16% France 24% US 16% France 22% AXA XL 6% Euro 103 billion Euro 6.2 billion 2 Asia 9% Europe 36% Asia 15% Europe 36% B5 1. Including AXA IM 2. Total underlying earnings. The breakdown by geography is based on underlying earnings excluding AXA XL, AXA SA and other Central Holdings

6 AXA s rankings figures 1 Current engines High potentials L&S #3 #2 #8 #5 France Switzerland Germany Belgium #11 #15 #6 #3 Spain Japan Hong Kong US (VA 2 ) L&S #16 #3 #9 China Indonesia Mexico #4 Thailand #3 Philippines 3 #7 Italy P&C #2 #1 #6 France Switzerland Germany #1 Ireland #5 #5 Italy Spain P&C #8 #16 Brazil China #28 Thailand #5 Philippines 3 #1 Belgium #1 Hong Kong #3 Mexico #2 UK B6 1. All sources available in the Activity Report 2. Variable Annuity data. Source: The Insurance Commission

7 Revenues and underlying earnings by line of business figures Revenues by line of business Underlying earnings by line of business Asset management 4% Banking 0% Asset management 8% Banking 1% Health 13% Health 9% Euro 103 billion L&S 49% Euro 6.2 billion 1 L&S 50% P&C 32% P&C 34% B7 1. Total underlying earnings. The breakdown by line of business is based on underlying earnings excluding Holdings

8 Life & Savings and Health Distribution and product mix figures APE by channel APE by product Other 11% Funds & Other 8% Partnerships 18% Protection 34% Euro 6.6 billion Agents & salaried sales force 51% Unit-Linked 21% Euro 6.6 billion Brokers IFAs & others 20% G/A Savings 19% Health 18% B8

9 Property & Casualty Distribution and product mix revenues excluding Health Revenues by channel Revenues by product Direct 9% Other 9% Partnerships 4% Non-Motor 62% Euro 35.3 billion Agents 32% Motor 38% Euro 35.3 billion Brokers IFAs & others 47% B9

10 B2 Geographies

11 France Topline overview L&S APE (excl. Health) Health revenues In Euro million In Euro million In Euro billion P&C revenues +1% +12% -1% Protection 1, , ,877 4,356 Commercial lines % 3.1 G/A Savings Unit-Linked Funds & Other Personal lines 4.2-1% 4.0 NBV margin 44% 37% APE: Euro 890 million (+72%) NBV margin: 19% (+9 pts) Commercial lines price effect: +2.1% in Personal lines price effect : +1.8% in B11 Changes are on a comparable basis

12 France Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.6 pt 95.6% 95.0% -0.8 pt 98.7% 97.9% -2.3 pts 94.6% 92.3% Loss ratio 71.1% 71.0% Loss ratio 80.7% 80.9% Loss ratio 67.5% 66.1% Expense ratio 24.4% 23.9% Expense ratio 18.0% 17.0% Expense ratio 27.1% 26.3% Prior year reserve developments -3.8% (vs. -2.1% in ) B12 Changes are at constant Forex

13 Europe Topline overview L&S APE (excl. Health) Health revenues In Euro million In Euro million In Euro billion P&C revenues +7% +3% +1% Protection , ,105 5,258 Commercial lines % 6.2 G/A Savings Unit-Linked Funds & Other Personal lines 9.5 0% 9.5 NBV margin 51% 48% APE: Euro 89 million (-17%) NBV margin: 69% (-38 pts) Commercial lines price effect: +1.2% in Personal lines price effect : +0.9% in B13 Changes are on a comparable basis

14 Europe Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -0.3 pt 97.0% 96.7% -1.3 pts 96.1% 94.8% -0.1 pt 94.6% 94.5% Loss ratio 90.4% 89.6% Loss ratio 85.1% 84.1% Loss ratio 67.3% 67.3% Expense ratio 6.5% 7.1% Expense ratio 11.1% 10.7% Expense ratio 27.3% 27.2% Prior year reserve developments -2.2% (vs. -1.6% in ) B14 Changes are at constant Forex

15 Asia Topline overview L&S APE (excl. Health) Health revenues In Euro million In Euro million In Euro billion P&C revenues +5% 1,291 1,299 +2% 1,970 1,947 Commercial lines % -7% Protection 932 1,004 Personal lines % G/A Savings Unit-Linked NBV margin 58% 50% APE: Euro 220 million (+4%) NBV margin: 135% (-8 pts) Commercial lines price effect: +2.1% in Personal lines price effect : +0.6% in B15 Changes are on a comparable basis

16 Asia Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio +0.1 pt +0.6 pt -0.5 pt 86.7% 86.8% 78.3% 78.8% 97.6% 97.1% Loss ratio 72.0% 70.8% Loss ratio 54.6% 54.5% Loss ratio 72.3% 71.7% Expense ratio 14.7% 16.0% Expense ratio 23.7% 24.2% Expense ratio 25.2% 25.4% Prior year reserve developments -0.8% (vs. -0.4% in ) B16 Changes are at constant Forex

17 AXA XL Topline overview P&C Specialty revenues P&C Insurance revenues P&C Reinsurance revenues In Euro million In Euro million In Euro million +3% +13% +16% 1,794 3,354 1, ,629 B17 Changes are on a comparable basis XL Group is reported as part of a new segment named AXA XL, comprising XL Group, AXA Corporate Solutions Assurance and AXA Art. Gross revenues for AXA XL in include AXA Corporate Solutions Assurance and AXA Art for the whole of 2018 and the contribution from XL Group for the fourth quarter of The change in gross revenues on comparable basis includes the contribution from XL Group for 4Q17.

18 US Life & Savings profitability analysis US Variable Annuity GMxB Underlying earnings 1 In Euro million Net of DAC and tax 2 FY16 Variable Annuity base fees & other, less expenses US L&S APE 4 (+6% vs. ) 1% 1% 12% 12% 48% 22% 22% GMxB hedge margin % 21% Reserve strengthening / release (including assumption and model changes) Variable Annuity GMxB Underlying earnings % 15% 22% 11% 33% 10% 36% FY08 1. On 100% basis. Including AXA Corporate Solutions Life Reinsurance Company. 2. Notional tax rate of 35% for FY16 and. Notional tax rate of 21% for. Gross of minority interests. 3. The reserve strengthening/release figures include the effect on DAC of base fees related to assumption and model changes. 4. Including life-like Health business. 5. New Non GMxB Variable Annuity includes Investment Edge, Structured Capital Strategies and Others. Fixed rate GMxB VA Floating rate GMxB VA New Non-GMxB VA 5 Employee Sponsored Non-GMxB VA Life Mutual Funds & Other B18 The results of our US segment are presented herein on the basis of IFRS and are not, and should not be relied upon as representing, the US GAAP results of AXA Equitable Holdings, Inc. (including AllianceBernstein), which, as a US public company, reports in US GAAP in accordance with the rules of the US Securities and Exchange Commission ( SEC ). For further information on AEH s financial results and other public reports please consult the SEC website at

19 Group Topline overview L&S APE (excl. Health) Health revenues In Euro million In Euro million In Euro billion P&C revenues 1 +4% +7% +3% 5,607 5,414 12,403 13, Protection G/A Savings 2,057 1,269 2,229 1,243 Commercial lines % 19.1 Unit-Linked Funds and other 1,631 1, Personal lines 1% NBV margin 41% 38% APE: Euro 1,217 million (+42%) NBV margin: 44% (-12 pts) Commercial lines price effect: +1.6% in Personal lines price effect : +1.5% in B19 Changes are on a comparable basis 1. Total P&C revenues include other for Euro 84 million in vs. Euro 120 million in

20 Group Profitability analysis Protection combined ratio Health combined ratio P&C combined ratio -1.3 pts -0.4 pt +0.8 pt 96.9% 95.6% 94.7% 94.4% 96.3% 97.0% Loss ratio 82.8% 81.4% Loss ratio 77.7% 77.6% Loss ratio 69.0% 69.7% Expense ratio 14.1% 14.1% Expense ratio 17.1% 16.8% Expense ratio 27.3% 27.3% Prior year reserve developments -2.1% (vs. -1.2% in ) B20 Changes are at constant Forex

21 Group Underlying earnings by geography and details by business line Underlying earnings (In Euro million) Total 1 o/w Life & Savings o/w Property & Casualty o/w Health o/w Asset Management Change Change Change Change Change France 1, % % % % - - Europe 2, % % 1,370 +2% % - - Asia 1,101 +5% % 44-8% % - - AXA XL United States 1,125 +4% % % 271 0% International % 69 +7% % Transversal & Central Holdings % % % % Underlying earnings 6,182 +6% 3,479 +9% 2,207-6% % % 1. Including Banking (Euro 87 million) and Holdings (Euro -762 million) B21 Changes are at constant Forex

22 Group Net flows figures L&S: Euro -1.9 billion Health: Euro +3.2 billion P&C NNC: -64k contracts in Euro billion in Euro billion Personal lines net new contracts, in thousands of contracts o/w non-gmxb +1.8 o/w GMxB France Europe Asia US International France Europe Asia -0.1 US International -92 France Europe Asia International Individual +2.2 Motor +71 Protection Unit- Linked -1.6 G/A Savings Funds & Other Group +0.9 Non-Motor -135 B22

23 L&S and Health APE, NBV and NBV margin by geography In Euro million APE by product Total APE NBV NBV margin G/A Unit- Protection Change 1 Change 1 Change 1 Health 2 Change 1 Savings Linked Mutual funds & other Change 1 FH17 Change 1 Change 1 Change 1 France % % 355-8% % 3 0% 1,849 2, % % 34% 30% -5 pts Europe % % % 89-17% 34-2% 1,034 1,146 +4% % 57% 50% -4 pts Switzerland % % % % % 66% 53% 0 pt Germany 81-3% % 32-9% 89-17% 18 0% % % 58% 53% -5 pts Belgium 23-6% % 4-16% % % 75% 67% -9 pts Spain % % % % % % 84% 80% -5 pts Italy 42 +4% % 130-3% % % 35% 31% -4 pts Asia 1, % % % % - - 1,510 1,520 +5% 1, % 71% 62% -7 pts Japan % 35-23% 0 0% % % % 112% 98% -14 pts Hong Kong 313 0% % 9-31% % % % 64% 47% -17 pts Asia High Potentials 287-3% % % % % 46% 38% -5 pts United States % % % 3 +61% % 1,799 1,471 +6% % 23% 23% 0 pt International % 9-48% 72-21% 14-6% 23 +6% % % 28% 36% +8 pts Total Group 2, % 1,243 0% 1,383-2% 1, % % 6,470 6,631 +9% 2,787 2,607-1% 43% 39% -4 pts 1. Changes are at comparable basis (constant forex, scope and methodology), notably restating for the decrease in ownership of AXA Equitable Holdings, Inc. 2. Only includes Life-like Health business. 3. APE, and the change on comparable basis, includes the underwritten savings contributions from semi-autonomous solutions. NBV and NBV margin, and the change on comparable basis, includes net investment services fees retained by AXA Switzerland from semi-autonomous solutions. B23

24 P&C Revenues by business line figures Personal Motor Personal Non-Motor Commercial Motor Commercial Non-Motor Change on Change on Change on Change on In Euro million Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis Gross revenues comparable basis France 1,986-1% 2,017 0% % 2,468-4% Europe 5,908 0% 3,612 0% 1,464 +4% 4,779 +3% Switzerland 1,060-1% % 107-1% 1,271 +3% Germany 1,256 +2% 1,286 +3% 167-1% 1,301 +1% Belgium 624-1% % 252-2% % UK & Ireland 1,206-1% 589-8% % % Spain % % 49-8% % Italy % % % % Asia 914-3% % 13-5% 131-7% Hong Kong 36-10% 86 +3% 7-6% 110-1% Asia High Potentials 25-18% 7 0% 6-4% 21-30% Asia Direct 853-2% 94 0% AXA XL % 6, % International 1,158 +6% % % 1,451 +1% Transversal % % % Total 9,966 0% 6,153 +1% 3,568 +4% 15,548 +5% 1. XL Group is reported as part of a new segment named AXA XL, comprising XL Group, AXA Corporate Solutions Assurance and AXA Art. Gross revenues for AXA XL in include AXA Corporate Solutions Assurance and AXA Art for the whole of 2018 and contribution from XL Group for the fourth quarter of The change in gross revenues on comparable basis includes the contribution from XL Group for 4Q17. B24

25 P&C Price effect by geography In Euro million Revenues Personal Lines Price effect Revenues growth Revenues Commercial Lines Price effect Revenues growth 2019 Market pricing trends France 4, % -0.7% 3, % -2.4% Pricing expected to remain stable Switzerland 1, % +0.2% 1, % +2.6% Price softening in Personal Motor and Commercial, positive pricing trends in Workers Compensation Germany 2, % +2.6% 1, % +1.1% Increasing price competition in Personal Motor, while prices in Commercial Property expected to remain positive Belgium 1, % -0.3% % +2.2% UK & Ireland 1, % -3.4% 1, % +5.7% Spain 1, % +1.3% % +6.0% Limited price increases expected in Personal Lines. Prices in Commercial lines expected to remain positive in a competitive market Market softening expected in anticipation of Ogden rate increase, while Commercial Motor rates expected to increase Positive price expected in the market in all lines of business, except for Personal Motor in the context of competition Italy 1, % +1.1% % +2.6% Limited positive price increase expected in Personal and Commercial Lines Asia 1, % -2.1% % -6.6% Soft market environment in Motor in Japan and Korea International 1, % +7.4% 2, % +3.5% Total 16, % +0.5% 19, % +4.7% Prices expected to increase Prices expected to be stable Prices expected to decrease B25 Changes are on a comparable basis

26 Asset management Asset under management rollforward figures Assets under Management rollforward In Euro billion AB AXA IM AXA IM - Fully consolidated scope AXA IM - Asian Joint Ventures AUM as of December 31, ,214 Net flows Market appreciation Scope & other Forex impact AUM as of December 31, ,189 Total Average AUM over the period ,109 Change of average AUM on a reported basis vs. 0% - +2% - +1% Change of average AUM on a comparable basis vs. +4% - +3% - +3% 1. The difference with Euro 1,424 billion of total assets under management mentioned in Financial Supplement page 54 corresponds to assets directly managed by AXA insurance companies 2. Average AUM for AXA IM are calculated excluding the contribution from joint ventures B26

27 B3 Profitability analysis

28 Profitability analysis Group underlying earnings margin analysis In Euro million Change Change Change Investment margin 4,693 +3% Fees & revenues 8,434 +7% Net technical margin 12,576 +7% Pre-tax underlying earnings 8, % Acquisition expenses 10,431 0% Administrative expenses 6,279 +3% VBI amortization % Pre-tax UE other activities 1-33 n.a. Taxes 3 2, % UE from associates % Minority interests % XL Group underlying earnings Mostly from lower favorable tax one-offs B28 Mostly from the US following the IPO and secondary offering of AXA Equitable Holdings, Inc. and higher pre-tax underlying earnings Changes are at constant Forex 1. Corresponds to pre-tax underlying earnings of banking, asset management and holdings 2. Or Euro 8,504 million including XL Group 3. Effective tax rate increased to 23% in vs. 21% at Underlying earnings 6,182 +6%

29 Profitability analysis Group underlying earnings margin analysis by country In Euro million Total France Europe Asia AXA XL US International Transversal Central Holdings Margin on revenues 5,093 1, , Investment margin 4,864 1,604 1, Management fees 2, , Technical Margin 1 & Other 13,438 3,034 6, , Gross margin 26,288 6,743 9,298 2,841 1,293 3,036 2, Admin. Exp. & 2 Other Acquisition expenses Pre-tax UE other activities -6,690-1,536-2, ,052-2,894-3,658-1, , ,016 Pre-tax UE 8,504 2,313 3,368 1, , ,016 B29 1. Other corresponds mainly to other fees (mainly mutual fund and broker fees) 2. Includes VBI amortization

30 Underlying earnings by business A predominantly P&C, Protection and Health company 10% Asset management & other 2 9% Health 1 26% Savings 3 20% Protection in Euro million Pre-tax underlying earnings Change Health % P&C 3,228 3,263 +3% Protection 1,670 1, % Savings 2,084 2, % Asset management & other % Total (excl. AXA SA and other central holdings) 8,733 9, % 34% P&C AXA SA and other central holdings ,016 +4% Total pre-tax underlying earnings 7,757 8, % B30 64% from P&C, Protection and Health Changes are at constant Forex 1. Pre-tax underlying earnings (excl. AXA SA and other central holdings) contribution by business line 2. Includes banking and other holdings pre-tax underlying earnings 3. Includes Unit-Linked, G/A Savings and Mutual Funds & Others pre-tax underlying earnings

31 Profitability analysis L&S underlying earnings margin analysis In Euro million Change Change Change Investment margin 2,515 +3% Fees & revenues 6,854 +7% Net technical margin % Average G/A reserves 346,859 +3% o/w Unit-Linked management fees 2,893 +6% o/w Mortality & morbidity margin and other 1, % Investment margin (bps) 73 bps 0bp Average UL reserves 170,547 +2% o/w GMxB VA margin % UL average management fees 170 bps +6bps o/w Loadings and other 3,961 +7% L&S revenues 50,059 +3% L&S average margin on revenues 7.9% +0.3 pt Acquisition expenses 3,145-4% Administrative expenses 2,738 +4% VBI amortization % Pre-tax underlying earnings 4, % Taxes % UE from associates % Minority interests % mostly from lower tax one-offs in the US (Euro -0.2 billion) Underlying earnings 3,479 +9% Mostly from the US following the IPO and secondary offering of AXA Equitable Holdings, Inc. 1. Includes basis (Euro -108 million), equity and interest rates volatility (Euro -49 million), model and assumption changes (Euro +94 million) and interest rates, credit spreads and other (Euro -171 million) 2. Effective tax rate increased to 19% in vs. 15% at B31 Changes are at constant Forex, except for gross revenues which are on comparable basis

32 Profitability analysis P&C underlying earnings margin analysis In Euro million Change Change Investment income 2,048 +3% Technical margin 10,256 +5% Average assets 1 70,263-1% Gross earned premium 31,764 +1% Average yield 1,2 2.9% +3 bp AY Loss ratio 67.7% -1.1pt CY Loss ratio 70.1% -0.1pt o/w Nat Cat 2.5% 0.0pt + + PY Reserve development -2.4% -1.0pt Or with XL Group 69.7% (+0.9pt) 71.9% (+1.7pts) 4.2% (+1.7pts) 2.1% (-0.8pt) Pre-tax underlying earnings 3, % Acquisition expenses 5,786 +1% Acquisition expense ratio 18.2% -0.1pt Administrative expenses 2,859 +2% Administrative expense ratio 9.0% 0.0pt Taxes 4 1, % UE from associates 93 +8% Minority interests % XL Group underlying earnings mostly from unfavorable tax one-offs in France Underlying earnings 2,207-6% B32 1. Average assets and average yield are estimated excluding Health previously reported in the P&C segment 2. Net of interests credited of P&C reserves relating to annuities. Gross asset yield for P&C including Health previously reported in the P&C segment at 3.3% 3. Or Euro 3,263 million including XL Group 4. Effective tax rate increased to 30% in vs. 27% at Changes are at constant Forex, except for gross earned premium on a comparable basis

33 Profitability analysis Details on P&C current year loss ratio Personal Motor Personal Non-Motor 74.0% +0.7pt 73.9% +0.2pt -0.2pt -0.8pt 60.5% +1.8pts -0.8pt +0.5pt -0.8pt 61.3% Nat Cat Price effect Freq & Sev Other Nat Cat Price effect Freq & Sev Other Total Commercial lines Incl. Construction & Work. Comp. +2.7pts 72.1% -0.8pt 0.0pt +0.7pt 74.7% Total P&C 70.2% +1.7pts -0.8pt +0.1pt +0.7pt 71.9% Nat Cat Price effect Freq & Sev Other Nat Cat Price effect Freq & Sev Other B33 1. Other includes opening adjustments, changes in mix, claims handling costs, reinsurance impact excl. Nat Cat, other changes in reserves, Forex and scope

34 Profitability analysis Focus on P&C reserves Prior year reserve development level (in % of gross earned premiums) 6.0% 5.4% 5.4% 4.5% 2.7% 3.1% 0.9% 1.4% 2.0% 1.7% 2.1% 1.2% 1.8% 1.8% 1.2% 1.3% 1.4% 0.6% 1.9% 1.3% 0.8% 1.2% 2.1% 2.1% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15 1H16 FY16 1H17 1H18 Reserving ratio (Net technical reserves/net earned premiums) 193% 186% 194% 187% 198% 187% 199% 186% 196% 187% 195% 186% 195% 185% 199% 188% 199% 194% 202% 192% 203% 209% 207% 213% FY05 FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15 1H16 FY16 1H17 1H18 Information related to FY13 was restated for the retrospective application of the new IFRS standards on consolidation FY05 to FY12 figures were not adjusted for this change. Note: FY05 to FY09 figures do not exclude Canadian operations International Insurance activity reclassified in the Property & Casualty segment from FY15 Health P&C like previously reported under the P&C segment is reported as a separate business line from FY16 for prior year reserve developments and for and for reserving ratio B34

35 Profitability analysis Health underlying earnings margin analysis In Euro million Change Change Change Investment income % Fees & revenues 1,579 +6% Technical margin 1,331 +8% Gross earned premiums: 13,019 (+6%) AY Loss ratio: 77.6% (-0.2pt) Acquisition expenses 1,502 +6% Acquisition expense ratio 11.5% 0.0pt Administrative expenses % Administrative expense ratio 1 5.2% -0.2pt Pre-tax underlying earnings % Taxes % UE from associates 4 +81% Minority interests 4-47% Underlying earnings % B35 1. Includes VBI amortization 2. Effective tax rate decreased to 27% in vs. 28% at Changes are at constant Forex, except for gross earned premium which are on comparable basis

36 Profitability analysis Asset management underlying earnings margin analysis In Euro million Change 2 Change 2 Net revenues 3 3,716 +3% Asset Management expenses 2,647 +3% o/w performance fees Euro 126 million (-2%) o/w research fees Euro 372 million (-2%) Margin 1 Expenses 1 Distribution revenues 668 0% Investment result -9 - Distribution expenses 693-1% + - Pre-tax underlying earnings Euro 1,034 million +3% + UE from associates 19 +9% Tax % - Minority interests % Underlying earnings Euro 541 million +3% B36 1. Margin and expenses are calculated gross of intercompany eliminations. 2. Changesare on a comparable basis for activity indicators (constant Forex, scope and methodology), and at constant Forex for earnings. 3. Or Euro 3,498 million net of intercompany eliminations. 4. Tax rate decreased to 20% in vs. 25% at.

37 Key sensitivities P&L Balance sheet Impairements net of hedges through Change 1 in fair value and Forex through Total impact net income Net unrealized capital gains through In Euro billion Adjusted earnings Net income (incl. impact through adjusted earnings) Shareholders' equity Equities -25% % Interest rates -100 bps bps Corporate spreads -75 bps bps 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 fair value option B37

38 Cost savings On track with our cost savings target % 2018 completion rate Euro 1.3 billion FY16- Cost savings Ambition % contribution to E UEPS CAGR from cost savings B38

39 B4 Balance Sheet

40 Balance sheet 1. General Account invested assets B.41 I. Government and corporate bonds by rating B.42 II. Government Bonds and related B.43 III. Corporate Bonds B.44 IV. Asset Backed Securities B.45 V. Listed Equity B.46 VI. Real Estate B.47 VII. Hedge Funds B.48 VIII. Private Equity B.49 IX. Mortgage Loans B Focus on net unrealized capital gains B Asset Liability management B Gross financial debt and adjusted ROE B Solvency II B Life and Savings value and IRR B Operating free cash flows B.61 B40

41 General Account Invested Assets Invested assets (100%) In Euro billion % % Fixed income % % o/w Govies and related % % o/w Corporate bonds % % o/w Asset backed securities 12 2% 13 2% o/w Mortgage loans & other % 41 7% Cash 22 4% 33 5% Listed equities 22 4% 18 3% Real Estate 33 6% 37 6% Alternative investments % 24 4% Policy loans 5 1% 5 1% Total Insurance Invested Assets % % 1. Mortgage loans & other include residential loans (Euro 13 billion), commercial & agricultural loans (Euro 23billion) and Agency Pools (Euro 5 billion) 2. Mainly Private Equity and Hedge Funds 3. invested assets referenced in page 31 of the financial supplement are Euro 782 billion, which include notably Euro 160 billion of Unit-linked assets, assets related to the Banking segment, as well as exclude assetsheld for sales related to transformation of the Swiss Group Life business and AXA life Europe. Changes in asset mix Consolidation of XL Group: Euro 33 billion assets, mainly government bonds and investment grade bonds Forex: Negative impact from the appreciation of Euro against USD Yields: Negative impact linked to the increase in interest rates on USD fixed income assets Credit: Negative impact from the increase in credit spreads Listed equities: Negative impact from market movements and divestments B41

42 Government and corporate bonds by rating Government and related bonds Corporate bonds 1 16% BBB 16% A Below investment grade (1%) Non rated (2%) Euro 236 billion 26% AAA 39% AA 39% BBB Below investment grade (6%) Euro 209 billion 12% AAA 11% AA 32% A Average rating maintained in the AA range Average rating maintained in the A range B42 As of December 31, Corporate bonds not rated by external rating agencies are reallocated under AXA s internal ratings: AAA: Euro 0.3 billion, AA: Euro 0.7 billion, A: Euro 2.1 billion, BBB: Euro 3.7 billion, Below investment grade: Euro 3.3 billion

43 Government bonds and related Breakdown by geography Gross 1 unrealized capital gains and losses In Euro billion Ireland 1% Netherlands 2% Austria 3% Supranational Institutions 5% Other 9% France 21% Spain 5% Switzerland 6% Euro 236 billion Japan 14% Belgium 7% Italy 9% US 9% Germany 10% B43 As of December 31, Gross of tax and policyholders participation

44 Corporate bonds Breakdown by industry Technology 3% Basic materials 3% Energy 6% Other 2% Gross 1 unrealized capital gains and losses In Euro billion 7.3 Financials 6% Banks 35% Consumer Cyclical 6% Communications 7% Euro 209 billion 2.6 Utilities 8% Industrials 9% Consumer non-cyclical 16% Decrease compared to mostly resulting from spreads widening B44 As of December 31, Gross of tax and policyholders participation

45 Asset backed securities Breakdown by asset type 1 Breakdown by rating CLO 84% Euro 13 billion US Subprime, Alt-A & NC RMBS 2% Prime RMBS 2% Commercial MBS 8% CDO 0.3% Consumer ABS 2 4% Other ABS 1% Below investment grade 2% BBB 1% A 16% AA 22% Non rated/equity 4% Euro 13 billion B45 1. Including debt and equity tranches of ABS 2. Mainly consumer loan ABS (plus some leases and operating ABS assets) As of December 31, 2018 AAA 55%

46 Listed equity portfolio overview Breakdown by geography Rest of the World 17% US 25% Gross 1 unrealized capital gains and losses In Euro billion 4.7 Other European countries 13% Euro 18 billion 2.2 UK 3% Belgium 5% France 20% Switzerland 5% Germany 6% Japan 7% B46 As of December 31, Gross of tax and policyholders participation

47 Real estate investments Defensive portfolio with good performance over the long term Breakdown by geography Belgium 9% Other Eurozone countries 11% Japan 1% Other 1% US 3% UK 4% Market value 1 Euro 37 billion Switzerland 33% Breakdown by type and geography Switzerland France Belgium Germany Other Total Office 10% 10% 6% 4% 10% 40% Residential 18% 2% 0% 0% 3% 24% Retail 2% 9% 2% 2% 2% 18% Others 2% 5% 1% 5% 6% 18% Total 33% 27% 9% 11% 21% 100% Germany 11% Portfolio Yield from Rental Income ~ 3.6% France 27% B47 1. Representing Euro 4.2 billion of unrealized gains off balance sheet, net of tax and PB. 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. As of December 31, 2018

48 Hedge fund investments AXA portfolio return drivers Well diversified portfolio Alternative Credit : 12 managers Multi-Strategy program 28% Relative value credit 9% Deep value credit 12% Market value Euro 7 billion Alternative Credit program 72% Real asset cash flow 13% Short dated carry 66% Alternative Credit program: steady carry engine from direct lending sub-strategy Multi-Strategy program: focus on low volatility and uncorrelated returns. Annual performance exceeded benchmarks for hedge fund industry. B48 Relative value & multi-strategy 25% Multi-Strategy : 26 managers Merger Arbitration 6% Fixed income arbitrage 23% EQMN 1 Discretionary 17% EQMN 1 Systematic 13% Distressed & credit 7% Global macro 9% As of June 30, 2018 Source: AXA IM 1. Equity Market Neutral: investment strategy on equities focusing on alpha generation with limited beta exposure to equity markets.

49 Private equity investments Diversified portfolio built over the long run Japan 2% Other 9% Breakdown by expertise Mezzanine 12% Venture 5% Infrastructure 14% Buy-out 69% US 32% Market value Euro 11 billion Diversified portfolio Europe 56% Direct 49% Funds of funds 51% B49 As of December 31, 2018

50 Mortgage loans Low risk mortgage loan portfolio market value by entity 1 Other 12% 30% Switzerland 19% Germany 45% Residential France 10% Switzerland 30% 55% Commercial 85% Residential 15% Commercial Market value 2 Euro 36 billion 29% United States 10% France 22% Agricultural 25% Residential Germany 19% 78% Commercial 75% Commercial US 29% 1. Excluding banking operations 2. Excluding Euro 5.1 billion of Agency pools (Mortgage-backed securities issued by US Government Sponsored Enterprises) As of December 31, 2018 B50 Very secured portfolio: default rate 0.25% loan to value 58%

51 Focus on net unrealized capital gains Balance sheet net unrealized capital gains In Euro billion Equities & other Corporate bonds 10.0 Government bonds and related Off balance sheet net unrealized capital gains In Euro billion Net unrealized capital gains on 0.7 government bonds and related by issuer France Belgium Germany Switzerland Japan Eurozone Other peripherals B51 1. Including ABS, alternative investments, other assets, minorities and equity methods

52 Ambition 2020 guidance Asset & Liability management (1/2) Spread above guaranteed rates L&S investment margin 1 P&C yield 2 Yield on assets Average guaranteed rates Spread above guarantee 69 bps 70 bps 3.3% -8 bps 3.2% Inforce 3.1% 1.8% +135 bps New business 2.5% 0.3% +220 bps Significant buffer to cover guarantees and to manage crediting rates to preserve investment margin Average inforce reserves of Euro 371 billion New business sold in combination with higher margin Unit-Linked business (hybrid 3 sales) bps 2018E 2020E bps Yield dilution per annum B52 1. Group investment margin on total Life & Savings General Account business, including Health previously reported in the L&S segment. 2. P&C gross asset yield including Health previously reported in the P&C segment and also includes Q4 investment income and one-fourth of theaverage Q4 assets from legacy XL. 3. Hybrid products are savings products allowing clients to invest in both Unit-Linked and General Account assets.

53 New business Inforce Asset & Liability Management (2/2) Life & Savings General Account investment spreads above guarantees for main entities France Germany Switzerland Belgium AXA MPS 290 bps 60 bps 20 bps 140 bps 140 bps 3.5% 0.6% 3.5% 2.9% 1.6% 1.4% 3.9% 2.5% 2.4% 1.0% 180 bps 130 bps 50 bps 120 bps 110 bps 1.8% 0% 2.2% 0.9% 1.0% 0.5% 1.9% 0.8% 1.5% 0.4% Yield on total L&S asset base Reinvestment yield on L&S fixed income assets L&S average guaranteed rate Average G/A reserves: Euro 108 billion G/A Savings new business sales with long term guarantees stopped in 1998 Average Life reserves: Euro 38 billion Asset portfolio with long investment horizon and with limited reinvestments in government bonds Average G/A reserves: Euro 34 billion Transformation of in-force Group Life business to a semiautonomous model Average G/A reserves: Euro 23 billion Strategic decision to exit the Individual Savings business Average G/A reserves: Euro 13 billion Emphasizing hybrid products and Protection businesses B53

54 Gross financial debt Long-term maturities Gross financial debt In Euro billion Debt gearing B54 25% 32% Undated subordinated debt Subordinated debt Senior debt Contractual maturity breakdown In Euro billion 2019 Economic maturity breakdown In Euro billion > 2040 Undated > 2040 Undated Senior debt TSDI = undated subordinated notes 2 Subordinated debt TSS = undated deeply subordinated notes 1. Including Euro 0.4 billion of reversal of marked-to-market on interest rates derivatives in versus Euro 0.7 billion in 2. Undated subordinated notes ("TSDI") includes preferred shares of 1,025 million asof December 31, 2018.

55 Adjusted ROE In Euro million (unless otherwise noted) Adjusted earnings 6,457 6,489 Interest charges on undated debt Average adjusted shareholders equity 43,067 43,390 Adjusted ROE (%) 14.5% 14.4% 1. Includes financial charges related to undated subordinated debt (recorded through shareholders equity), preferred shares and equity component of bonds Mandatorily Exchangeable into shares of AXA Equitable Holdings, Inc. B55

56 Solvency II ratio Solvency II ratio 1 In Euro billion Key sensitivities 205% 193% Solvency II ratio roll-forward Available capital Required capital Ratio as of December 31, 2018 Interest rate +50bps Interest rate -50bps Corporate spreads +50bps Equity markets +25% Equity markets -25% 193% 200% 182% 190% 195% 186% +7 pts -11 pts -3 pts +2 pts -7 pts 205% +24 pts -12 pts -4 pts +13 pts 193% -33 pts Operating return Dividend Market impact US IPO Subordinated debt, excl. forex XL acquisition, forex & other B56 1. The Solvency II ratio is estimated primarily using AXA s internal model calibrated based on an adverse 1/200 years shock and assuming equivalence for AXA Equitable Holdings, Inc. in the US. For further information on AXA s internal model and Solvency II disclosures, please refer to AXA Group s SFCR for, available on AXA s website ( As in previous disclosures all AXA US entities are taken into account assuming US equivalence. The contribution to the AXA Group Solvency II ratio from the entities that were part of the XL Group ( XL entities ) as at December 31, 2018 was calculated in accordance with the equivalence regime, based on the Bermudian Standard Formula SCR, plus a 5% add-on required by the AXA s lead supervisor (ACPR), as a transitional measure. In compliance with the decision from ACPR, XL entities will be fully consolidated for Solvency II purposes (as per the consolidation-based method set forth in the Solvency II Directive) and their contribution to the Group s Solvency capital requirement will be calculated using the Solvency II standard formula from March 31, Subject to prior approval of the ACPR, the Group intends as soon as FY 2020 to extend its Internal Model to XL entities.

57 Solvency II required capital Split by Risk, Geography & Business Required capital by risk Required capital by business Required capital by geography Operational Counterparty 6% 7% P&C 20% 41% Asset Management & Banking 4% Holdings & Other 16% Market 43% Asset Management, Banking & other Italy & Spain Switzerland 6% 6% UK Belgium US 4% 4% 3% 5% Transversal & Central Holdings 21% 26% Life 37% Property & Casualty Life & Savings 7% Germany 11% XL Group 15% Asia 17% France B57

58 Shareholders equity to Solvency II EOF In Euro billion IFRS Shareholders Equity 1 Full market value of assets Move to full market value of assets Real estate (Euro +4.7 billion) Loans and Other (Euro +0.4 billion) Intangible assets Best Estimate Liabilities Remove intangible assets Goodwill (Euro -17 billion) DAC (Euro -13 billion) VBI and other intangibles (Euro -5 billion) Move to Best Estimate Liabilities Subordinated debt Difference between IFRS reserves and Best Estimate Liabilities (Euro +21 billion) Risk Margin (Euro -9 billion) Scope & other +2 Eligible Own Funds (EOF) 58 B58 1. IFRS shareholders equity is gross of minority interests and includes Euro 6.8 billion of undated subordinated debt (TSS/TSDI) 2. Includes senior debt at XLGroup eligible aseof under the equivalence regime

59 L&S EOF and NBV Key sensitivities L&S EOF sensitivities In Euro billion New Business Value (NBV) sensitivities In Euro million L&S EOF as at December 31, NBV as at December 31, ,607 Interest rate +50 bps % Interest rate +50 bps 2, % Interest rate -50 bps % Interest rate -50 bps 2, % Equity markets +25% % Equity markets +25% 2, % Equity markets -25% % Equity markets -25% 2, % Equity markets volatility +25% % Equity markets volatility +25% 2, % Interest rates volatility +25% % Interest rates volatility +25% 2, % B59

60 L&S Internal Rate of Return (IRR) by country In Euro million APE NB IRR APE NB IRR France 1, % 2, % Europe 1, % 1, % Asia 1, % 1, % United States 1, % 1, % International % % Total 6, % 6, % B60

61 Operating free cash flows by segment Operating free cash flows In Euro billion 2,832 +4% 2, Life & Savings FCF 141 In Euro million Life & Savings Expected statutory earnings Expected change in required capital Operating Free Cash Flow 3,111 Property & Casualty Property & Casualty FCF 2, Asset management, Banking & Other Changes are on a reported basis In Euro million Earnings contribution Change in required capital Operating Free Cash Flow B61

62 Group operating free cash flows by geography In Euro million 1 France 1,404 1,397 Europe 2,744 3,362 Asia United States International AXA XL 136 (201) Other Total 6,292 6, Free Cash Flows contribution from AXA Corporate Solutions and AXA Art have been reclassified from Other to AXA XL. B62

63 Strong cash flow generation and remittance In Euro billion Operating free cash flows Cash remitted from entities 88% 116% or76% Remittance ratio in line with our guidance of 75% - 85% (excluding Euro 2.6 billion cash linked to the pre-us IPO restructuring operations) B63

64 L&S free cash flow emergence from inforce and new business Expected undiscounted cash flows from 2018 inforce 1 business In Euro billion Expected undiscounted cash flows from 2018 new business In Euro billion > > Euro 19 billion undiscounted free cash flows expected to be released from 2018 inforce 1 over 5 years 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 1. Including 2018 new business, tobe released from January 1, 2019 onwards B64

65 B5 Corporate Responsibility

66 Corporate Responsibility SRI analysts recognize AXA as a leader AXA is the 1 st insurer by number of SRI funds in its capital (1) 2018: Sector Leader 1 st / 49 insurance companies Included in Euronext Vigeo indices A UN PRI Scorecard (focus on Responsible Investment) Score: A- Level Score: «Leadership» B66 Score: AAA 2018: in Top 5% Score: 79/100 Included in DJSI Europe & DJSI World indexes Accounts for 10% of AXA employee s performance shares attribution Included in the FTSE4GOOD index since Source: Ipreo, Q

67 Responsible insurer striving for a stronger and safer society Climate change and the environment Health and disease prevention Social inequality & economic inclusion Responsible Data and Artificial Intelligence First to apply both investment and underwriting restrictions Green investment commitments Protect the biodiversity Divesting from tobacco Trusted health partner Prevention and public health Investing in Impact funds Product and services accessibility for vulnerable populations Fostering philanthropy for education and employment Trusted data steward Ethical use of data and AI Giving data back for common good Employee engagement: AXA Hearts In Action Ranked in Top5% for the third year in a row in 2018 (Dow Jones Sustainability Index) B67