Ambition 2012 Investor conference. November 13, 2007

Transcription

1 Ambition 2012 Investor conference November 13, 2007

2 Cautionary statements concerning forward-looking statements Ambition 2012 November 13, Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications 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 AXA's Annual Report on Form 20-F and AXA s Document de Référence for the year ended December 31, 2006, for a description of certain important factors, risks and uncertainties that may affect AXA s business. In particular, please refer to the section " Special Note Regarding Forward-Looking Statements" in AXA's Annual Report on Form 20-F. 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.

3 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Offer innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Alfred Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

4 3rd market update on Ambition 2012 Ambition 2012 is about becoming the industry s preferred company For clients Customer centricity For employees For shareholders Employer of choice x2 x3 Revenues between 2004 and 2012 Underlying earnings* on a per share basis * Net of interest charges on perpetual subordinated debt (TSS and TSDI) which are accounted for as equity under IFRS Ambition 2012 November 13,

5 We are delivering on Ambition 2012 objectives, giving them increasing credibility The equation Efficiency of AXA s global platform AXA s top line outperformance Market growth +7/8pts +3/4pts +5/6pts Flexibility +15% p.a. Underlying EPS* x3 over % +16% Brokers estimates Underlying EPS growth drivers * Net of interest charges on perpetual subordinated debt (TSS and TSDI) which are accounted for as equity under IFRS Ambition 2012 November 13,

6 notably supported by strong momentum in asset gathering, despite continued strengthening of the Euro Ambition 2012 November 13, Assets under management In Euro billion CAGR H07: +20% 1,315 1,376 CAGR H07: 871 1, Third party +24% Unit-linked +21% General Account +13% H07 Note: Data includes the impact of acquisitions, notably Winterthur (2006, 98bn of AUM) & Framlington (2005, 7bn of AUM), and disposals, notably AllianceBernstein s cash management business (2005, 24bn of AUM) but the current environment generates questions. How do we address them?

7 Ambition 2012 November 13, Question #1 What is the impact of the current environment?

8 We see the subprime crisis as a stress test in a relatively favorable environment Positive, even if decelerating global economic growth Resilient equity markets? Rising interest rates/spreads Continued strengthening of the Euro vs. most currencies S U B P R I M E C R I S I S Contained short term impacts Limited slowdown of world economy Limited P&L impact from mark-to-market of ABS at current market levels No impact on 3Q07 business volumes for AXA Challenges Earnings currency translation risk, as more than 50% of our underlying earnings are in non-euro currencies Ambition 2012 plan is based on a long term 8% return p.a. for equity markets Positive long term effects The European insurance industry has shown transparency and discipline Repricing of risk is a positive side effect of the crisis Ambition 2012 November 13,

9 Ambition 2012 November 13, Question #2 What is the impact of the Winterthur acquisition on our growth profile?

10 Winterthur was a unique opportunity to strengthen the Group in attractive conditions Ambition 2012 November 13, SCALE Strengthening of our European platform Scarce assets in Japan and HK bringing additional distribution channels Good sales momentum in 9M07 EMERGING MARKETS Winterthur s Central and Eastern Europe operations are scarce assets The acquisition was instrumental in AXA s development in a high growth region SWITZERLAND Leading positions (21%) in developed markets are a key long term asset Group life is a very profitable business Growth in P&C and individual life is an achievable challenge The quality of Winterthur s integration is already recognized

11 and its integration does not prevent us from delivering on our growth objectives Life & Savings new business growth (on a comparable basis) +7% +11% +15% +5% +11% 9M07 +10% Industry* 1H07 AXA Property & Casualty revenue growth (on a comparable basis) +3,4% +2,8% +4,3% % +2,4% Industry* 1H07 +3,9% AXA +22% +4% Asset Management revenue growth (on a comparable basis) +14% +14% +17% +23% * Source: SG, based on 17 European insurers Industry* AXA 1H07 Ambition 2012 November 13,

12 Ambition 2012 November 13, Question #3 What is the pace of Variable Annuities rollout?

13 Variable Annuities roll-out across the AXA Group is gaining momentum Life & Savings 9M07 activity indicators In Euro million Non-US Variable Annuities Launched in: 9M07 In Euro million Variable Annuities 5,599 1,250 14% 24% 108 APE* 58 NBV Non-US Variable Annuities Average monthly sales In Euro million APE* NBV M07 October 2007** Non-US VA sales already represent over 10% of total VA sales and contribute to profitability improvement of individual savings business *Annual Premium Equivalent ** Preliminary Ambition 2012 November 13,

14 and gives us comfort in our approach to offer innovation on a global scale Ambition 2012 November 13, Roll-out of Variable Annuities has taken time, but is now gaining momentum Similar initiatives launched by competitors are an excellent prospect to open non-us markets to this type of product Our challenge is to create the conditions to reproduce and leverage the Accumulator experience: Product design (incl. ALM & Risk Management) Marketing IT Distribution organization Group Scale B L O C K B U S T E R S

15 Ambition 2012 November 13, Question #4 Does P&C growth create value?

16 Ambition 2012 November 13, Disciplined P&C growth Gaining market share and improving profitability while maintaining a strong discipline +3% +3% +4% 98.5% 97.7% 96.9% 193% 193% 187% 17,852 18,874 19,793 Revenues ( m) Combined ratio Reserving ratio* Growth rates on comparable basis *Net technical reserves / NEP, excluding Winterthur As of June 30, 2007 (including Winterthur), net technical reserves / NEP ratio was at 203% P&C underlying earnings have grown by 14% p.a. on average since 2004, on a comparable basis

17 Our policy is to maximize the value creation of our P&C portfolio by combining growth with underwriting discipline Ambition 2012 November 13, Ambition 2012 Central case When COR ~96%, accelerating top line growth creates shareholder value 97% 23% When COR ~101%, decelerating top line growth creates shareholder value COR ROE Assumptions Solvency requirements equal 40% of earned premiums Data based on AXA s business mix

18 Ambition 2012 November 13, Question #5 What are the benefits of multidistribution?

19 Ambition 2012 November 13, Multidistribution is a key component of AXA s strategy Financial protection Global reach Open architecture Multidistribution 59% Non proprietary 49% 41% Proprietary 51% 2006 Life & Savings APE 2006 P&C Revenues AXA s exposure to proprietary and non proprietary distribution increases its capacity to benefit from the full potential of the growing financial protection market

20 The strength of our traditional networks is instrumental to our performance Ambition 2012 November 13, Tied agents and salaried sales force networks provide a unique insight on client needs and support Group initiatives Implementation of growth strategies Reaction to market changes Support to offer innovation e.g. AXA Germany s dual offer in retail motor e.g. AXA Japan s focus on medical sales in 2007 e.g. Accumulator roll-out We have plans to reinforce traditional distribution channels in all of our markets Our challenge is to develop multi-access and combine traditional networks with direct capabilities

21 and we are actively developing higher growth distribution networks Ambition 2012 November 13, Direct platforms Brokers and financial advisers Banking distribution 470 Direct revenues ( m) + 29% p.a ,000 Improved market insight Distribution share of the value chain Share of banking distribution (2006) 1% 18% E P&C revenues Life & Savings APE Accelerated by 2006 and 2007 bolt-on acquisitions

22 We see high potential in our joint venture with BMPS on the Italian market Ambition 2012 November 13, A very attractive partnership Partnership with the 3rd Italian bank Covering life, non-life, pensions and asset management Exclusive and long term agreement (min. 10 years) Fair price, given growth upside and exit price at full Appraisal Value A very concrete action plan Life: boost margins by shifting production from index-linked to unit-linked Non-life: grow an under-developed network Increase yields on managed assets An extremely encouraging start: rapid launch of Accumulator and strong initial sales ( 100m of premiums in 6 weeks) A major strategic opportunity to become Italy s 3rd largest player in Life & Savings with the announced acquisition of Banca Antonveneta by BMPS

23 Ambition 2012 November 13, Question #6 Is AXA capturing emerging markets growth?

24 Ambition 2012 November 13, AXA s presence in emerging markets is focused on three regions Central & Eastern Europe Asia - Pacific Region Mediterranean Region

25 Our operations in emerging markets have a limited weight in the Group s current performance, but they are growing fast In Euro million + 86% yoy + 49% yoy Life & Savings new business volume* Asia** (excl. Japan & HK) 92 NBV: 25 Central & Eastern Europe 74 NBV: 18 1H07 9M07 In Euro million + 10% yoy + 19% yoy P&C revenues Asia 336 Morocco & Turkey 588 9M07 9M07 *APE Group share for CEE ; ** New Business Index (new business regular premiums + 10% of single premiums) for Asia, on a 100% share (source AAPH). NB Asia (excl. Japan & HK) includes Singapore, Indonesia, Thailand, Philippines, China, India and Malaysia that are not modeled in AXA Group s published APE All growth rates on a comparable basis, except Asia L&S Ambition 2012 November 13,

26 and this growing presence is supported by our M&A policy Together with distribution-driven deals in developed markets, our M&A policy is focused on increasing our presence in selected growth markets, in a 2012 and beyond perspective: In Asia In Central & Eastern Europe In the Mediterranean region Note: Vesko and UIA subject to closing conditions Ambition 2012 November 13,

27 Ambition 2012 November 13, Question #7 Is Ambition 2012 shared across the Group?

28 Ambition 2012 November 13, Ambition is increasingly shared by all employees Communication and leadership 2012 is a reference in every management process: Quarterly Business Reviews Strategic plan 2012 and Beyond training program for 10,000 managers Ownership 18 transversal initiatives sponsored by Management Board members Passport 2012 for every employee AXA Miles, linked to achievement of 2012-related targets Development Professional Colleges (Risk, Finance, Marketing, IT..) with world class academic partnerships AXA Research Fund : 100 million over 5 years

29 and is supported by a strong alignment between management, employees and shareholders Ambition 2012 November 13, Management Board Exercize partly depending on performance of AXA shares vs. sector index Executive Committee Top 300 All employees Long term 4-10 years Medium term 2-4 years Stock options 51% Performance shares 15% 43% 15% 25% 15% Over 11,000 employees hold AXA options or performance shares Short term 1 year Short term incentive comp. 27% 28% 31% 20% Present Fixed Salary 7% 14% 29% 80% Variable share 93% 86% 71% >20% Over 100,000 employee shareholders through the AXA Miles program The Chairman and the other members of the Management Board must own shares worth at least 3 and 2 times, respectively, their total annual compensation

30 Ambition 2012 November 13, Question #8 Are we preparing for beyond 2012?

31 Ambition 2012 November 13, We are already working on beyond 2012 Offer Distribution IT New opportunities Emerging markets Capture short term savings through banking offer to fuel life insurance Leverage direct with central platform and multi-access strategies From cost savings to innovation enabler Long term care and old age dependency Building on our growing presence in Asia, CEE and the Med region and beyond

32 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Offer innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Alfred Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

33 Source: AXA Distribution Dashboard, covering 99% of L&S APE and 81% of P&C revenues Ambition 2012 November 13, AXA s sales reflect our multidistribution approach 2006 Life & Savings APE 2006 P&C revenues 41% 59% Bank partnerships and JVs (18%) Tied agents (44%) 51% 49% Bank partnerships and JVs (5%) Tied agents (27%) Salaried salesforce & direct (14%) Brokers & IFAs (41%) Direct & salaried salesforce (7%) Brokers (44%) Proprietary Non proprietary Proprietary Non proprietary combining the persistency of proprietary networks, with higher growth channels, including direct in retail P&C and bank distribution in individual life

34 Multidistribution is applied across our operations 2006 Revenues (in %) France USA L&S P&C New in 2007 UK/Ireland Switzerland Japan/Korea Germany Belgium Italy Spain Direct Direct Proprietary Channels Salaried Salesforce & Owned Distributors Salaried Sales Force Owned Distributors Exclusive Agents Aligned Dist. Non-Proprietary Channels Brokers, IFAs, Multi- Tied Agents Generalists Specialized Aligned IFAs Generalists Specialized Partnerships with Banks or Financial Institutions Partnerships and Joint-Ventures Other Partnerships Joint Ventures Portugal/Greece Australia/NZ Hong Kong Ambition 2012 November 13,

35 Ambition 2012 November 13, AXA Group distribution strategy: 2012 challenges Refine & transform the distribution model for proprietary channels Focus sales forces on advice Integrate direct capabilities to traditional networks: multi-access model Reinforce our recruitment capacities of new sales force profiles Strengthen our presence in faster growing distribution models Participate in the broker & IFAs market: grow/protect AXA market shares and capture distribution margin Increase market share in Life & Savings through banking distribution Expand direct distribution

36 Reinforcing our sales force recruitment capacities: Winning the war for talents Ambition 2012 A growth challenge, a retirement challenge and an attractiveness challenge Ambition 2012: increase the number of proprietary distributors by +16%* AXA will also need to renew 17% of proprietary sales forces due to retirement Low attractiveness of insurance commercial careers Broadening the pool of candidates Improving the quality of recruits First actions Recruiting program launched in France in April 2007 and in Switzerland in October 2007, with communication through mass-media and proximity media Launch of the National Recruiting Weeks in France Launch of dedicated recruiting websites (France & Switzerland): 45,000 visits in the first 3 months on the French website * Excluding emerging markets Ambition 2012 November 13,

37 Participating in the broker market: grow and protect AXA s market shares and capture the distribution margin Ambition 2012 November 13, France & Canada Experience ~100 brokers acquired over the last 3 years, in both retail and commercial P&C (Retail in France, Retail + Commercial in Canada) In France, the objective is to convert broker portfolio into AXA products and, when and where possible, transform brokers into tied agents In Canada, objective is to maintain broker status, improve operational efficiency and optimize AXA s share of portfolio We observe stable customer retention rates after acquisitions UK Experience 90% of UK SME P&C market is intermediated and is becoming increasingly consolidated Acquisition strategy aims at taking attractive distribution margins, protecting AXA s market share and building closer customer relationships Acquired brokerage controls c. 500m premium and is the no. 2 SME broker in the UK

38 We have already developed banking distribution in Europe, the US and Asia, tailoring our approach to local contexts Ambition 2012 November 13, Commercial agreements US - distribution through banks and wirehouse brokers (~10% market share for VAs) Japan - distribution agreements for savings products: Bank of Tokyo Mitsubishi, Nomura Long term distribution agreements AXA - Banking distribution Contribution to 2006 activity indicators 18% NBV margin:21% France - HSBC Belgium - Dexia Bank and Crédit Agricole Joint ventures with banks France - NSM Vie in life, Natio with BNPP in non-life Asia - JVs with leading local banks: Bank Mandiri in Indonesia, Krungthai Bank in Thailand, Metrobank Trust in the Philippines, Affin Bank in Malaysia 1% P&C revenues Life & Savings APE and we have significantly developed this network in 2007, through our Italian JV with BMPS, our long term partnership with Alpha Bank in Greece and our local commercial agreements (e.g. Citibank HK)

39 Ambition 2012 November 13, AXA is well positioned to be a strategic partner for Banks Offer Innovation From Mass Market to High Net Worth solutions Across all life stages Variable Annuities Asset Management 2 world class asset managers AXA IM: AUM of June 30, 2007 AB: AUM of June 30, 2007 Diversification and scale Large presence across the globe Shared services and reuse of best practices Risk Management and ALM Advanced approach to risk mitigation techniques Strong risk governance (S&P s Excellent ERM rating 2 insurers only in Europe) Increasing risk components in insurance products (e.g. AXA s Variable Annuities with guaranteed benefits) reinforce complementarities between banks and insurers

40 Ambition 2012 November 13, AXA has developed a leading position in Direct Direct Assurance (France #1) AXA Direct Japan (Japan #4) Direct Seguros (Spain #2) Seguro Directo (Portugal #1) 2005 Direct motor (Poland ns) Touring (Belgium #1) Swiftcover (UK ns) Kyobo Auto (Korea #1) #X: direct market ranking Direct P&C revenues breakdown by country Japan Korea Spain UK Poland France Portugal Belgium 2007E revenues: Euro 1bn

41 Ambition 2012 November 13, increasingly contributing to P&C top line growth Direct P&C revenues In Euro million + 29% p.a ,000 Direct P&C operations should continue to grow by >12% per annum between 2007 and 2012, with a combined ratio < 100% E Significant contribution to the achievement of Ambition 2012 targets for our P&C segment

42 Ambition 2012 November 13, developments: Direct greenfield operation in Poland Market opportunity Poland combines critical size and high growth potential Most mature motor insurance market in the CEE, allowing to leverage the direct model AXA s leverage Opportunity to optimize initial investment and time to market with the reuse of Direct Assurance s platform and models Promising first results The brand awareness is growing rapidly: spontaneous brand awareness 18% after 10 months (45% for aided awareness) versus 23% for main competitor Link4 after 57 months Business volume (32,000 new business policies in September 2007) in line with the plan with an average premium above the market and the business plan Launch of a greenfield Direct operation in Italy is planned for 2008

43 Ambition 2012 November 13, developments: Acquisition of Kyobo Auto Market opportunity South Korea is the second largest P&C market in Asia behind Japan Solid growth prospect of motor Direct market, which represents already 15% of the whole Motor market (and is expected to grow up to 25% by 2012) 800,000 clients for Kyobo Auto AXA s leverage Leverage AXA Direct Japan s experience to enhance in-bound activities and on-line sales Kyobo Auto as a recognized quality of service through a very efficient and innovative claims handling process. Automatic recognition of customer cell phone number Use of GPS technology to localize accident site and send claims adjuster First results The first 4 months after the acquisition have seen a strong increase in revenues (+28%) compared to last year Record revenues in October (KRW50bn or 39m) Monthly revenues 2007 vs % % +23% % +9% + 9.1% +46% % 34,000 net policy inflow recorded in October 0 Oct (est.) Jul Aug Sept Oct (est)

44 2007 developments: Acquisition of Swiftcover The 100% online experience Ambition 2012 November 13, Swiftcover revenues A fast growing profitable model 100k policies in force in 2006, to grow to 300k in 2007 and up to 800k by 2012 Delivering long term combined ratio below 100% In GBP million CAGR : 20% A differentiated proposition Innovative online only customer proposition Low cost business model with flexible IT platform Expert management team (ex Churchill)

45 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Freddy Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

46 Ambition 2012 November 13, New retirement reality VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Changing retirement income sources Reduction in Defined Benefit Plans / Social Security to meet retirement income needs Increased reliance on Individual Savings Plans Increased life expectancy Retirees are living longer need for a 30+ year plan for retirement income Need for insurance against longevity risk Inflation risk An unprecedented opportunity Retirees cannot afford to depend on fixed income 2% inflation over 25 years lead to a 40% reduction in purchasing power Retirees need equity markets investments with guaranteed income

47 Ambition 2012 November 13, Retirement strategy Variable Annuities VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Variable Annuities - US term for unit-linked products with secondary guarantees such as death or income benefits Investment portfolios in equity and fixed income funds Provides options for guaranteed payment upon death Provides options for guaranteed stream of income Often tax-deferred Policyholder benefits Participation in equity market Guarantees at key life moments: retirement, death Tax deferral in some countries Insurer benefits Good margin products, clients pay for guarantees Competition driven by product features, distribution, service & risk management Competitive advantage vs. asset managers who do not offer guarantees VAs cover the fundamental risk of outliving one s assets Important products to address the retirement gap market

48 Ambition 2012 November 13, Accumulator - Customer-driven products VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Accumulator - AXA Equitable s Variable Annuity with secondary guarantees Guaranteed Minimum Death Benefit ( GMDB ) Guarantees that beneficiaries receive the greater of Account Value Guaranteed Minimum Benefit (Return of Premium, Roll-up, Ratchet, Max) Guaranteed Minimum Accumulation Benefit ( GMAB ) Guarantees minimum amount for defined maturity - Accumulation period Policyholder receives greater of Account Value or guaranteed amount e.g % of initial premium

49 Ambition 2012 November 13, Accumulator - Customer-driven products VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Guaranteed Minimum Income Benefit ( GMIB ) Provides Guaranteed Minimum Income for Life Guaranteed income based on greater of the Account Value or accumulated Benefit Income guaranteed regardless of underlying account performance After waiting period (10 years), policyholder can elect to annuitize Guaranteed Minimum Withdrawal Benefit for Life ( GMWB for Life ) Provides, upon election, Guaranteed Withdrawals for Life Withdrawal rate based on policyholder age at first withdrawal Annual benefit base reset to account value for life Joint-life options available

50 Ambition 2012 November 13, U.S. market growth: A global opportunity VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity 300 Variable Annuity Sales (In $US billion) US Industry VA Sales AXA Equitable % CAGR AXA Equitable U.S. Industry AXA Equitable VA Sales US Industry % CAGR

51 Distribution is key to success in all markets VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Strong U.S. sales growth in 2007 through multiple distribution channels Retail Third Party Agents AXA Advisors (Tied Agents) Broker/ Dealers Banks Financial Planners 1H07 Sales $3.1bn MS 11.6% 1H07 Sales $1.7bn MS 10.2% 1H07 Sales $1.2bn MS 10.2% 1H07 Sales $1.6bn MS 5.2% Top 5 VA Sales - Advisors Month VA Sales 1 October 2007 $ August 2007 $ July 2007 $ March 2007 $ June 2007 $ 319 Top 5 VA Sales - B/D Month VA Sales 1 Sept $ June 2003 $ October 2007 $ August 2007 $ June 2007 $ 328 Top 5 VA Sales - Bank Month VA Sales 1 June 2003 $ August 2007 $ October 2007 $ June 2007 $ July 2007 $ 223 Top 5 VA Sales - Fin. Planner Month VA Sales 1 October 2007 $ August 2007 $ July 2007 $ March 2007 $ May 2007 $ 297 Source: VARDS Ambition 2012 November 13,

52 Ambition 2012 November 13, Key drivers for successful global VA roll-out VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Success is a combination of scale, distribution strength, time to market, quality of investment offering and superior service Distribution Product Investment Platform Technology Service Captive / Third Party Agents Key Accounts Marketing Sales Desk Competitive Feature Functionality Profitability Risk Management Brand Selection Performance Perception Firm Interface Policy Issuance CRM Metrics Operations In-Force New Business

53 Ambition 2012 November 13, Customized local product design is important VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity AXA s Product Approval Process governs customized products for AXA s local markets Risk tolerance and hedge program defined at early stage of product design Risk Management Product Innovation Continuous monitoring and modeling of actual experience Product design Dynamic Hedging Funds Management Starting point of VA risk management Core component of VA risk management program, supplemented with reinsurance Manage risk profile within product offering

54 AXA is leveraging Accumulator globally, and the roll-out is gaining momentum VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Launch G M D B G M A B G M I B G M W B G M W B L Distribution 9M07 APE US 1996 Tied Agents, banks, brokers, IFAs 696m Germany 1Q06 (Twinstar private) 2Q07 (Twinstar Riester) Tied agents, brokers, banks 51m 1Q06 ($) Japan 1Q07 ( ) Tied agents, banks 39m Southern Europe 1Q07 (Spain) 2Q07 (Italy) 3Q07 (MPS) Tied agents, banks, brokers 7m France 1Q07 Salaried sales force, tied agents 11m Additional launches at the end of 3Q07 in Belgium (GMWB for Life) and Hong Kong (GMIB) * Preliminary October APE* for non-us VAs: Euro 23 m Ambition 2012 November 13,

55 Ambition 2012 November 13, Germany - Twinstar VAs: Variable Annuities U.S. Growth Global VA Roll-out Target clients Product positioning Global Opportunity Successful 2006 Launch - Additional products in 2007 Twinstar designed to look and feel like a traditional German product, with 2 target groups: year old wanting regular premium retirement savings year old wanting to invest single premium for retirement income Guarantees GMIB guarantees 3% p.a. average rate GMDB on sum of paid gross premiums Distribution Tied agents (55% of APE to date) Third party, including bancassurance (SEB) Funds (100% unit-linked) Klassik: Funds in account controlled by AXA (50% equity) Invest: Choice of 15 different funds (0% to 100% equity) Challenges & Opportunities Development of single premium sales through third party channels

56 Ambition 2012 November 13, Japan Yen VA VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity Target clients Product positioning Targets 50+ year olds investing lump sum retirement allowances. Represents an innovative solution to clients longevity concerns, and provides capital guarantees on death Guarantees GMWBL: 2% roll-up for 10 year deferral period + annual ratchet for life. Term-Certain GMWB: 20-year term with 1% roll-up for 10 year deferral period and annual ratchet GMDB with GMWB-like roll-up and ratchet Funds (100% unit-linked) Funds Investors 70 years and younger invest in 40/60 (equity/fixed income) funds; Others invest in 20/80 fund Distribution Bancassurance agreements with various bank distributors Challenges & Opportunities Distribution network New entrant opportunity for AXA Competition from mutual funds and simpler GMAB products

57 Ambition 2012 November 13, Accelerating the global profit opportunity VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity AXA Group APE AXA Group NBV In Euro million In Euro million 11% 4, VAs +29% CAGR VAs 1,501 6, % CAGR 5, , % 1, , % % 4,297 4,814 5,335 4, , M07 All other Life & Savings products VAs M07 All other Life & Savings products VAs Accumulator -type products represented 14% of APE and 24% of NBV in 9M07

58 Ambition 2012 November 13, A global opportunity VAs: Variable Annuities U.S. Growth Global VA Roll-out Global Opportunity AXA continues to demonstrate its ability to design, launch and distribute VA products VA products offer AXA a clear opportunity to differentiate from banks and asset managers Developing competition from global insurers will accelerate the growth of new global markets to Accumulator -type products Our next challenge for the roll-out of Accumulator will be to leverage the skills we have gained in the US, moving from product strength to breadth of distribution, quality of the investment offering and superior service platform Accumulator roll-out is a strong illustration of the benefits of being global that will serve as a benchmark in the future for further implementation of AXA s product innovations

59 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Offer innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Alfred Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

60 In order to achieve Ambition 2012, we are reinventing our operating system Ambition 2012 November 13, Quality of service standards are low across the insurance industry Service differentiation is a growth accelerator Long-term quality of service improvement is only sustainable if combined with efficiency improvements OUR CHALLENGE Improved quality of service X Improved efficiency

61 Savings generated by our claims management initiatives are in line with our expectations and support top line growth Claims Management Offshoring IT Quality of service Savings generated In equivalent combined ratio % points Insurance Procurement Fraud Leakage 2.4 pts 3.0 pts Based on initiatives rolled-out since 2004, claims management should deliver savings equivalent to 3 points of combined ratio by e AXA only 2008e We are in the process of assessing Winterthur s position on these three initiatives in order to define a specific claims management strategy and targets Claims management brings additional flexibility to deliver on our top-line growth targets +2.6 million net new retail motor and household policies since 2004* * Includes FY05, FY06 and 9M07 data Ambition 2012 November 13,

62 Impact of Leakage initiative on AXA Spain motor loss ratio Claims Management Offshoring IT Quality of service Initiative launched in March 2006 in Motor Leakage is mainly due to: Poor liability & indemnity assessment Insufficient recovery Motor property 5.1% 2.6% Injury Leakage rate (%) Leakage rate (%) -2.5 pts 6.2% -1.7 pts 4.5% March H07 March H07 Euro 8 m associated savings Euro 4 m associated savings The total amount of associated savings of Euro 12 million represents: 1.5% of total claims paid 2.0% of motor claims paid (property & injury) 0.8 point of total combined ratio Ambition 2012 November 13,

63 Insurance procurement initiatives for retail motor business at AXA Germany Claims Management Offshoring IT Quality of service We provide a guaranteed service rather than an indemnity Generating procurement savings Limiting the number of intermediaries (no longer need for experts, lawyers ) Improving customer satisfaction Service provided in case of damage 1. The customer calls AXA 2. Receives a SMS within 30 minutes confirming the claim is being processed 3. Receives a call from a selected repairer within 60 minutes 4. Benefits from pick-up and delivery service for his damaged car + courtesy car during repair 5. Repair is done exclusively with original parts and is guaranteed for 6 years Savings related to selective orientation Selected repairer orientation rate 10m 8m 6% 10% 26%* H H Target 2 initiatives taken in 2007 to accelerate the pace of procurement savings Additional commissions for agents based on their orientation rate Launch of a new product with a discount if the client commits to use the service * Maximum achievable orientation rate on the German market, according to an external benchmark study Ambition 2012 November 13,

64 Ambition 2012 November 13, Impact of Fraud initiative on AXA Italy motor loss ratio Claims Management Offshoring IT Quality of service In 2004, AXA Italy launched an anti-fraud program in motor that it progressively extended to all its business lines Since 2004 AXA Italy implemented: A strong and clear governance Developed internally an effective automatic tool to identify potential fraud claims Training and awareness campaigns Gross savings in Motor In Euro million & in % of claims paid 0.7% % 8.7 Euro 15 m of Gross global savings in 2006 : 1.8% of total claims paid 1.2 points of total combined ratio

65 On track with our 2010 offshoring plan: circa 5,000 FTEs in multiple AXA offshored centers Claims Management Offshoring IT Quality of service Offshoring targets In FTEs 5,000 2,050 2,527 3,100 Offshoring should deliver Euro 100m of savings* by e 2010e AXA BS Bangalore AXA BS Pune Avanssur Morocco * Difference between (i) off-shore costs and (ii) on-shore salaries & benefits and other on-shore costs, gross of project costs, before tax and PB Ambition 2012 November 13,

66 Ambition 2012 November 13, IT is a key productivity driver Claims Management Offshoring IT Quality of service IT convergence achievement vs potential Target convergence: 95% 30% Achieved: Infrastructure Applications Productivity Productivity gains levers 2007e Vision 2012 Sourcing 0.9% 1-2% Process excellence 1.1% 2-3% Convergence & Simplification 1.8% 2-3% 3.8% 5-8% 2007 performance improved despite the integration of Winterthur and specific regulatory changes (e.g. VVG in Germany)

67 Ambition 2012 November 13, IT spending: performance Claims Management Offshoring IT Quality of service Group IT spending In Euro billion CAGR % Winterthur (0.34) e 2012e From 2.6% of revenues in 2004 to ~ 1.8% in 2012 IT, which currently represents 20% of non-commission expenses, will be a major contributor to expense ratio improvement

68 As part of our differentiation strategy, our service commitments are gaining momentum Ambition 2012 November 13, Quotation / Proposal New business Renewals Complaints management Service / payment France Italy 08 Portugal 08 Spain France Germany Portugal Commitment from 08 SME: Risk acceptance confirmation to brokers within 4 days Commitment from 08 Premium Brokers: New contract issuing within 3 days Commitment Commercial Motor: First answer within 48 hours Offer within 5 working days. France Commitment All personal line customer complaints acknowledgement in 2 days and answer to customer in 3 weeks. France Italy Guarantee from 12/07 Personal Lines Motor: Total car theft Three months of premium reimbursed to Customer if Loss Adjuster s visit takes longer than 3 days. Same rule for payment. Spain 08 Commitment from 08 Personal Lines Motor: Courtesy letter confirming names of settler and loss adjuster, within 5 days France Italy Guarantee Professionals and SME P&C: If we don t call back Customer within 90 from claims declaration or loss Adjuster s visit happens later than 24 hours, we compensate Customer with 50 euros Portugal Spain Assistance (Spain & France) Guarantee Personal Lines Motor: Assistance If the tow truck takes longer than 60 AXA compensate Customers with 60 (SP) 30 (FR). We differentiate the AXA Brand through commitments and guarantees to demonstrate our quality of service to customers and distributors

69 Distributor satisfaction is a key driver of our top-line growth targets Claims Management Offshoring IT Quality of service Distributor satisfaction KPI +7pts pts 39 driven by improvement in +3pts pt Distribution Management Product Innovation Quality of Service Non proprietary distributors preferred provider: AXA s ranking AXA s score: Rank: 37% 19% 18% AXA 1 #1 AXA 2 #2 AXA 3 #3 37% of non proprietary distributors* consider AXA as their # 1 provider ** 74% of non proprietary distributors* rank AXA in their top 3 providers** * Distributors included in the survey are IFAs & brokers (medium or high producers) ** Considering the overall aspects of your relationship with a provider could you please rank the top 3 companies which you prefer (including AXA if you consider AXA to be one of the top three) Ambition 2012 November 13,

70 We continue to closely monitor our progress in Customer satisfaction Ambition 2012 November 13, Claims Management Offshoring IT Quality of service Net Customer Satisfaction scoring (1) (over 120,000 respondents p.a. in 16 countries) % of our customers would Definitely recommend AXA to their family or friends 1H04 2H04 1H05 2H05 1H06 2H06 1H07 (1) Net satisfaction scoring is the % of extremely and very satisfied customers, less the % of very and quite dissatisfied customers. Customer satisfaction remained high despite the integration of Winterthur

71 that we have placed at the heart of the Group s performance through various incentives & HR initiatives Ambition 2012 November 13, Claims Management Offshoring IT Quality of service Customer satisfaction is a central driver of AXA s performance Management All Employees Integrated in local managers Short-Term Incentive Compensation AXA Miles program 50 shares per employee will be granted in July 2009, if 2008 customer satisfaction target is reached Customer satisfaction index target

72 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Offer innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Alfred Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

73 Ambition 2012 model reality check Underlying EPS key value drivers initial breakdown % initial p.a. targets +2/3pts +1pt +8/10pts (1) +2pts (2) +1pt(3) +1pt 0/-3pts Top line growth Admin costs Business Mix Capital management Investment return Winterthur Flexibility +8pts +3pts +1pt +2pt +1pt 0pt Real observations (4) 17% p.a. +2pt (5) (1) Combined ratio maintained at 1H06 level to 2012 (2) Administrative costs up ca. 4% p.a. and Asset Management CIR down ca. 1% p.a. (3) Life & Savings (UL in reserves from ca. 30% to ca. 40%), Asset Management (Internal / Third party) (4) Based on FY07 analyst consensus data (5) Higher technical margins Ambition 2012 November 13,

74 Administrative costs: we are improving our expense management Ambition 2012 November 13, Life & Savings P&C Administrative costs to reserves ratio (%) Administrative expense to GWP ratio (%) 0.87% 10.3% 0.83% 9.6% 9.4% 0.74% 0.73% 0.69% 8.9% 8.2% H06 1H H06 1H07 Asset Management Underlying cost income ratio (%) 72.8% 69.1% 67.6% 69,1% 67,6% H06 1H07

75 Ambition 2012 November 13, Business mix: continuing improvement L&S APE UL share Asset management third party share % gross revenues 63% 42% 52% 41% 2004 HY HY2007 L&S reserves UL share Asset management s AUM third party share 66% 33% 38% 59% 2004 HY HY2007

76 Ambition 2012 November 13, is supported by strong UL-driven cash-flows L&S net inflows Geographic focus bn +11*% Europe US Asia/ Pacific 10.0** 10.8** UL: +9.5 Non UL: Annualized reported net inflows growth % +10% +8% +15% M2007 % Gross Reserves 3% 3% 3% Annualized 9M07 net inflows* in % gross reserves Reported Restated** (Australia) Restated*** (Aust.&UK) +3% +2% +3% +5% +3% +2% +3% +8% +4% +4% +3% +8% *:Annualized reported growth ** Excluding Netherlands for and -0.3 in 2005 and 2006 * Annualized ** Including Australian Mutual funds *** Excluding UK With Profits and including Australian Mutual funds Our life & savings operations generate strong and stable cash-flows

77 Capital management: monitored number of shares & dilution control Monitored number of average fully diluted shares The implementation of our systematic share buy-back and other capital management initiatives have led to a fairly stable number of average fully diluted shares despite the capital increase to finance Winterthur 170 (1) (2) (65) (3) (66) (38) 2,065 1, Winterthur capital increase Share plan Stockoptions&Other Share buy-back Elim. of dilutive impact of conv. bonds AXA/Finaxa merger est 2007 (1): 208m rights issue, net of accretive impact of preference subscription rights (2): Stock-option exercized+change in dilutive impact of stock-options and performance shares+change in treasury shares held to cover US share based compensation (3): 97mn outstanding shares bought since 2004, including 45m bought in 3Q07, hence partly taken into account in average fully diluted number of shares Ambition 2012 November 13,

78 Investment return: credit optimization As part of our initiatives to increase investment return by 75bps between 2004 and 2012, our analysis shows that at current market spreads, an average single A rated portfolio is yielding a better net economic result than an AA one the A average losses (defaults and downgrades) are largely offset by the A spread above the risk free rate, the additional cost of capital (based on internal model) is more than compensated by the additional spread, in the worst years (max 36bps), the losses are still absorbed by the current spread levels. Investment in stable ratings, concentration limits, monthly review of top lines by AXA s asset managers and regular review by local CIOs should enable AXA to increase its credit exposure in a controlled way Spread* (31/10/07) Average loss (defaults and downgrades) Net spread (of loss) Cost of capital** (10% coc, internal models) Net spread (of loss and cost of capital) AA 75 bps -11 bps 64 bps -31 bps 33 bps A 101 bps -17 bps 84 bps -44 bps 40 bps Therefore, AXA intends to increase the credit exposure of its investment grade portfolio to reach a single A benchmark within 4 years. The move will be opportunistic - depending on the level of credit spreads: accelerated if credit spreads increase, stopped if spreads decrease Once the target exposure is reached in 2012, forecast impact on earnings is within the m range (Net of policyholder participation, gross of taxes) * Merrill Lynch EMU Corporate Index (around 5 years duration) ** Cost of capital is 10% after tax, capital is before diversification benefit Ambition 2012 November 13,

79 * As at September 30, 2007, including AXA IM s 0.2bn investment in Libor+ funds and 0.2bn through monetary market funds Ambition 2012 November 13, Impact of subprime crisis update (1/2) Limited ABS exposure Subprime MBS + CDOs + CLOs: ~Euro 2.9bn* net of policyholder s participation and tax Quality of assets remain sound (insignificant impact of recent downgrades or credit watches) Centralized underwriting and monitoring No funding issue Very strong liquidity and insurance s inverted cash cycle Multi-year nature of insurance liabilities No off-balance sheet exposure No credit enhancement activity No credit commitments to conduits or SIV

80 Impact of subprime crisis update (2/2) Mark to market updates US subprime RMBS: 1,559* m June 30 September 30 October 31 Mark to market 99.7% 92.1% 82.6% 55% Policyholder s participation 17% Change in fair value through P&L CLOs: 2,700* m June 30 September 30 October 31 Mark to market 98.3% 91.3% 90.4% 34% Policyholder s participation 42% Change in fair value through P&L CDOs: 1,696* m (including 230 million of structured finance CDOs) June 30 September 30 October 31 Mark to market 94.5% 92.8% 91.7% 43% Policyholder s participation 37% Change in fair value through P&L * As at September 30, 2007 Ambition 2012 November 13,

81 Ambition 2012 November 13, Hedging of our variable annuities is centralized on two platforms Product design & pricing Hedging platforms Trades execution AXA Equitable AXA Equitable s dynamic hedging team AXA Germany AXA Japan AXA France AXA Life Europe Organization ensures strong risk management, leverages Group scale and fosters innovation

82 Ambition 2012 November 13, Variable Annuities - Hedging secondary guarantees VA guarantees are equity put options. Standard market consistent option modeling techniques can model the embedded options Mapping of policyholder accounts with hedge indices Liquid instruments with limited counterparty risk Hedge implementation with futures for equity and futures/swaps for interest rates Daily valuation of liability options and market monitoring Weekly rebalancing of futures portfolio More frequent rebalancing if needed AXA s hedging policy Delta: sensitivity to equity Rho: sensitivity to interest rates AXA does not hedge all Vega risk (sensitivity to volatility); Vega risk mitigated by high level of volatility assumed in pricing On top of financial hedging, AXA has experience in managing conservatively non hedgeable risks, such as policyholder behavior (e.g. GMIB election rate)

83 * 2007 expected Yen and Swiss Franc underlying earnings are 150 and 1.55, respectively Ambition 2012 November 13, FX management Balance Sheet In consolidated accounts, over 70% of investments in foreign entities are hedged with borrowings raised at AXA SA level and denominated in corresponding foreign currencies, allowing to apply hedge accounting Profit & Loss Based on our budget, we protect consolidated underlying earnings against variations of main currencies to which we are exposed (more than 50% of underlying earnings are in foreign currencies, mainly USD, GBP, Yen, CHF, and to a lesser extent CAD and AUD). The hedges are conducted by AXA SA using currency options. In 2007, we hedged our expected USD underlying Euro 1.28* As of today, expected 2008 USD underlying earnings are only partially Euro 1.41

84 Impact of current macro economic environment Outlook for 2007 and 2008 In 2007, underlying EPS* should grow in line with Ambition 2012 targets There is no evidence that business volumes are impacted by the current market conditions, based on 9M07 numbers The impact on 2007 net income of ABS market value decrease should be more than offset by the capital gain on the disposal of the Dutch operations ( 0.4bn) Lower interest rates levels since June 30, 2007 should have a positive impact on unrealized capital gains on bonds, partly offsetting the balance sheet impact of lower market value of the ABS portfolio The strengthening of the Euro versus most currencies should have no material impact in 2007 In 2008, underlying EPS* should grow at high single / low double digit rate, in spite of the strength of the Euro impacting the translation of non-euro earnings. * Net of interest charges on perpetual subordinated debt (TSS and TSDI) which are accounted for as equity under IFRS Ambition 2012 November 13,

85 Ambition 2012 November 13, Agenda 2012 initiatives gaining traction Henri de Castries, CEO Multidistribution driving growth and competitiveness François Pierson, Member of the Management Board Offer innovation: creating worldwide momentum on variable annuities Christopher Condron, Member of the Management Board Combining business efficiency and quality of service Claude Brunet, Member of the Management Board Delivering on 2012 financial targets Denis Duverne, Member of the Management Board Growth acceleration opportunity in the NORCEE region Alfred Bouckaert, Member of the Management Board Frank Keuper, CEO - AXA Germany Philippe Egger, CEO - AXA Winterthur

86 Overview of AXA s Northern, Central and Eastern Europe region (NORCEE) NORCEE Belgium Germany Switzerland CEE Market Position Belgium: Life: # 4 w # 3 P&C: # 1 # 1 Market Position Czech Republic: Pensions: # 2 Market Position Ukraine: P&C: # 3 w Market Position Germany: Life: # 7 w # 5 Health: # 9 # 5 P&C: #7 #3 Market Position Poland: Pensions: # 5 Market Position Hungary: Pensions: # 5 w w Market Position Switzerland: Life: # 13 w # 2 P&C: # 10 # 1 Market Position Luxemburg Life: # 6 w # 5 P&C: #3 #3 Market Position w Slovakia: Pensions mandatory: # 2 Pensions voluntary: # 4 The addition of Winterthur to AXA s Northern Europe operations strengthens our competitive position and enhances our growth profile in the region Ambition 2012 November 13,

87 The NORCEE Region is a major contributor to the performance of the AXA Group NORCEE Belgium Germany Switzerland CEE Contribution of the NORCEE region to AXA Group s 1H07 KPIs Life & Savings APE Life & Savings NBV P&C revenues 15% 22% 37% Underlying earnings Adjusted earnings 22% 35% Excluding International insurance and holdings Ambition 2012 November 13,

88 Ambition 2012 targets : Strong growth based on outperformance in large mature markets and strong potential in CEE markets NORCEE Belgium Germany Switzerland CEE Life & Savings APE In Euro billion CAGR +11% 1.9 Life & Savings NBV In Euro million CAGR +13% 657 P&C revenues In Euro billion CAGR +3% * * * 2012 Our objective is to deliver double digit underlying earnings growth on average until 2012 * 2006 figures include Winterthur Ambition 2012 November 13,

89 Over the years, AXA Belgium has become a true profit leader NORCEE Belgium Germany Switzerland CEE Bank and insurance AUM In Euro billion NBV margin +9% p.a pts 40.9% % 17.6% * Net combined ratio -21.2pts Underlying/adjusted earnings In Euro million 116.6% +38% p.a % 95.4% *Deterministic methodology Underlying earnings Adjusted earnings Ambition 2012 November 13,

90 Assurbanking: Creating value through AXA Bank Belgium s retail banking offer NORCEE Belgium Germany Switzerland CEE The complete insurance and retail banking product offer is a strategic cornerstone Increases customer loyalty (9.24 contracts per bank client compared to 1.71 contracts per pure insurance clients) with complete product offer and rewarding programs (e.g. Happy You) Fuels the highly profitable life insurance business (73% of the single premiums are generated through the bank) Meets customers short and long term needs Asset transfers from bank to insurance Life insurance net inflows 2 In Euro million 902 1,449 1,108 In Euro million 9% 1,145 12% 1,740 8% 1, xx% % of opening reserves : Change in fiscal regime 2 Technical Operating Cash Flow Ambition 2012 November 13,

91 Differentiation strategy: Based on consumer insights for each preferred segment we have developed a unique approach Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Consumer insights Three pillars guarantee a differentiated strategy in the long term: Need for recognition Changing needs at key moments in life Service & information Peace of mind EMOTIONAL-IZED" POSITIONING - Know and understand customer values and aspirations "TANGIBLE-IZED" PRODUCTS AND BENEFITS - Ensure that products meet changing needs and desires CUSTOM-IZED" SERVICE AND APPROACH - Guarantee an excellent service and advice

92 Happy Generation: AXA offers a tailored product proposition to its preferred target groups Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE P&C Life & Invest Mortgage/ Consumer Loan Approach Credit Card Approach Segmentation Happy Generation All All Happy Generation Happy Generation All Need Car insurance making me carefree while respecting my driving experience Save and invest in complete safety The best funds in the world available to all Invest with a high return potential and a guaranteed income for life Improve the quality of life Enjoy Consume to benefit without dipping into my capital Consume without worries Car Mobility Crest Millesimo TwinStar Second Home Products for specific purposes Credit card Products & Services

93 Update on Winterthur integration NORCEE Belgium Germany Switzerland CEE Integration synergies 50m* recurring synergies targeted for end 2009 Reduction in FTEs on track (Target: FTEs of which over 50% will be realized by year end 2007) Life Retail : Replaced Winterthur products with AXA s successful Life range Group : Good performance 2007 with volume forecast above budget P&C Gained 5% market share to acquisition of Winterthur and protected market share during the integration phase Growth on overall motor portfolio in 2007 (retail) TATV Gained access to #1 Direct internet insurance distribution channel (14% growth in 9M 2007) * Net of policyholder participation, gross of tax Ambition 2012 November 13,

94 Ambition 2012 in Belgium NORCEE Belgium Germany Switzerland CEE AXA Belgium s top line growth targets Life & Savings APE Net credit production P&C revenues Market + 10% p.a. Market + 2.5% p.a. CAGR +10% CAGR +5% CAGR +3% In m In bn In bn * * * 2012 On the back of our top line growth prospects, we believe that the merged operations can achieve double-digit underlying earnings growth between 2007 and 2012 * 2006 AXA+WEA Ambition 2012 November 13,

95 We will leverage the cornerstones of the Belgian success in all countries of the region Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Focus on target segments Define and win target segments by focusing on preferred customer segments and rewarding Anticipate and exceed customer expectations Full financial protection product / Service range with integrated banking offer Become the brand for financial protection for target segments Technical excellence Strong back bone - optimal ALM, stringent underwriting and capital management Local strategies focus on enforcing existing strengths while leveraging AXA Belgium s success factors and best practices

96 Over the last 6 years AXA Germany has systematically and successfully turned its business around Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE P&C Net combined ratio NBV margin pts -0.8 pts 118.3% 98.9% 98.1% 2007* pts 31.5% +4.9 pts 19.1% 14.2% * without Kyrill & Merger Underlying earnings* 2001* *Deterministic methodology Adjusted earnings* In m +82% p.a. 282 In m +146% p.a % p.a % p.a * Group Share * Group Share

97 Ambition 2012 November 13, AXA Germany has defined a clear profit and growth strategy NORCEE Belgium Germany Switzerland CEE : Manage extreme situations and outperform the market Centralized management of the German Group Crisis management further to stock market turmoil P&C turnaround - We decide for profit in Corporate and launch of motor dual product line : Become a market leader in profitability Life turnaround / Introduction TwinStar Start to gain market share in P&C Achieve profitability in line with expectations Acquisition of DBV Winterthur onwards: Use platform to significantly grow market share

98 Merger with DBV-Winterthur places AXA in the top 5 in all business lines Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Life & Savings: #5 Health: #5 P&C: #3 Market shares Allianz Group 16.4% 2. AMB Generali Group 11.1% 3. ERGO Group 8.3% 4. HDI Group 5.9% 5. Zurich Group 5.1% AXA+DBV 5.5% 7. AXA 3.5% <10 DBV-Winterthur 2.0% Market shares ERGO Group 15.7% 2. Debeka Group 13.7% 3. Allianz Group 11.1% 4. Signal Iduna Group 7.1% 5. AMB Generali Group 5.8% AXA+DBV 6.9% 8. DBV-Winterthur 3.6% 9. AXA 3.3% Market shares Allianz Group 16.1% 2. HDI Gerling Group 7.8% 3. R+V Group 5.3% 4. ERGO Group 5.1% 5. HUK-Coburg Group 5.0% AXA+DBV 5.6% 7. AXA 4.4% <10 DBV-Winterthur 1.2% AXA is now Germany s 4th largest composite insurer

99 Integration is very successful so far, as businesses are complementary in product and client groups served Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Life & Savings APE AXA: % Market: % In m In m In m Health APE AXA: % Market: -0.6 % P&C revenues AXA: +1.5 % Market: -1.4 % 2,170 2, HY 2006 HY 2007 HY 2006 HY 2007 HY 2006 HY 2007 AXA Winterthur AXA Winterthur AXA Winterthur In 1H07, AXA benefited from the growing momentum of Twinstar sales DBV-Winterthur s performance was impacted by lower sales of Riester products which had benefited from a tax incentive in 2006 Good fit regarding cross-over sales, notably with TwinStar AXA: continuous growth above the market thanks to innovative products notably sold through brokers DBV-W: important focus on its main strength i.e. full benefit government aid product Beihilfeversicherung DBV contributes a high share of civil servants and medicals AXA has increased its position in the motor market & is among the top 3 insurers for SME & Industrials in the relevant markets DBV-W: benefits from its excellent bundle product (BOX-Family) DBV contributes to crossover sales with BOX-Family

100 The merger is also on track to deliver cost synergies target and to provide the platform to reach Ambition 2012 Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Merger timeline 12/ / / / /2009 Closing n-1, n-2 structure One Holding structure Social discussion completed All staff in new structure finance systems merged Merger Health, P&C in operating systems Cost synergies Cost synergies approx. 2/3 in personnel costs and 1/3 in nonpersonnel costs Synergies in personnel costs represent a reduction of 1,200 FTEs mainly double management (incl. supported structures) and employing best practices in operational departments Total costs after PB of 171m -100 In Euro million Synergies Integration costs * All figures after PB and before Tax

101 Ambition 2012 November 13, AXA Germany s operating strategy to reach Ambition 2012 NORCEE Belgium Germany Switzerland CEE AXA DBV platform Client segmentation and clear branding Client centric organization Distribution management

102 We identified three major target client groups where we see growth potential for our Ambition 2012 Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE Size of population Attractiveness / Consumer Insight AXA s response 50+ ~ 30.3m Fast growing segment 58 % of private assets High expectations regarding advisers At Retirement (TwinStar product family) Public sector ~ 5.9 m Growth potential (particular years), e.g. health business Evolution of needs is highly predictable and can be clustered Enhancement of DBV portfolio with AXA products DBV brand refreshment and repositioning Medical professionals ~ 0.6 m Strong need for consulting and financial advice DÄV and DBV no. 1 insurer for medical practitioners

103 The establishment of COO organisation ensures a customer driven set-up of the entire process organisation of the company Ambition 2012 November 13, NORCEE Belgium Germany Switzerland CEE DBV-W established a successful COO-Organisation. We will build on the general COOprinciples of DBV-W and implement it in the combined company DBV-W improved customer satisfaction significantly Percentage of totally or very satisfied customers Quality management to continuously improve organization based on customer needs 53% 55% 39% DBV-W Market DBV-W Source: Kompass - Customer Satisfaction Survey 53% Market On-going review of process efficiency DBV-W was classified as Excellent in Direct telephone contact and received rewards source: KUBUS