AXA FULL YEAR 2015 EARNINGS. Presentation. February 25, 2016

Transcription

1 AXA FULL YEAR 2015 EARNINGS Presentation February 25, 2016

2 Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties. Please refer to the section Cautionary statements in page 2 of AXA s Document de Référence for the year ended December 31, 2014, for a description of certain important factors, risks and uncertainties that may affect AXA s business. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise.

3 TABLE OF CONTENTS INTRODUCTION & HIGHLIGHTS PAGE A4 Henri de Castries, Chairman & CEO FINANCIAL PERFORMANCE Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO PAGE A19 CONCLUDING REMARKS Henri de Castries, Chairman & CEO PAGE A48 A3 Full Year 2015 Earnings Presentation February 25, 2016

4 Introduction & highlights Henri de Castries, Chairman & CEO

5 RESULTS Strong earnings and dividend per share Successful delivery of Ambition AXA Well prepared for the future A5 Full Year 2015 Earnings Presentation February 25, 2016

6 STRONG EARNINGS GROWTH IN 2015 UNDERLYING EARNINGS In Euro billion ADJUSTED EARNINGS In Euro billion +2% +2% % Reported growth +9% Reported growth A6 Full Year 2015 Earnings Presentation February 25, 2016 Changes are at constant Forex unless otherwise specified

7 INCREASED DIVIDEND PER SHARE UNDERLYING EARNINGS PER SHARE In Euro DIVIDEND PER SHARE In Euro +10% +16% ADJUSTED EARNINGS PER SHARE In Euro % 2.34 Payout ratio 45% 47% Payout ratio range guidance 45 55% of adjusted earnings net of undated debt interest charges A7 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a reported basis

8 AMBITION AXA HAS SUCCESSFULLY TRANSFORMED THE GROUP AMBITION AXA PRIORITIES HAVE LED TO... Selectivity High Return on Equity Strong balance sheet Acceleration Resilient earnings Efficiency Diversified footprint Digital momentum A8 Full Year 2015 Earnings Presentation February 25, 2016

9 AXA DELIVERED ON ITS AMBITION AXA KEY OBJECTIVES UNDERLYING EARNINGS PER SHARE In Euro per share 1.57 FY FY FY FY Ambition AXA CAGR +5% to +10% GROUP OPERATING FREE CASH FLOWS In Euro billion Cumulative operating Free Cash Flows: Euro 25.4 billion 4.2 FY FY FY Ambition AXA cumulative Euro 24 billion ADJUSTED RETURN ON EQUITY 2 In % Average adjusted shareholders equity 3 (in Euro billion) % 10.0% 13.3% 14.8% 14.5% 14.1% 13-15% DEBT GEARING In % 28% 26% 26% 24% 24% 23% 23-25% FY10 FY11 FY12 FY13 Ambition AXA 2015 FY10 FY11 FY12 FY13 Ambition AXA 2015 All numbers are as published A9 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

10 AXA S FINANCIAL POSITION HAS BEEN SIGNIFICANTLY STRENGTHENED STRONG SOLVENCY II RATIO 1 230% REDUCED DEBT GEARING 28% 205% Target range 170% 23% RESILIENCE TO EXTREME SCENARIOS Ratio as at Dec 31, % 2008/2009 financial crisis 2 160% -45 pts 2011 financial crisis 3 183% -22 pts FY10 A10 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

11 AXA IS DISCIPLINED DISCLIPINED CAPITAL ALLOCATION Cumulative FY10- LOW SENSITIVITY TO INTEREST RATES Based on 9bn 6bn -0.2bn ca. 1 year HIGH QUALITY ASSET PORTFOLIO % of General Account invested assets Average rating of government and related bonds in the AA range Average rating of corporate bonds in the A range 2% 1% A11 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

12 AXA IS GROWING AND WITH INCREASINGLY PROFITABLE BUSINESS IMPROVED LIFE & SAVINGS BUSINESS MIX AND INCREASED MARGIN In Euro billion CONTINUED TO GROW THE P&C BUSINESS WHILE IMPROVING PROFITABILITY In Euro billion APE NBV margin Revenues % 5% 6% 26.0 CAGR +4% Mutual funds & other 13% 38% 23% 31% Unit-Linked 31% FY10 2 G/A 1 Savings 25% 13% -1% 19% Combined ratio G/A Protection & Health 31% 36% 47% 52% -3.3 pts 99.5% 96.2% FY10 22% 34% FY10 FY10 2 A12 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a reported basis All notes are on pages A51 of this document

13 AXA STRENGHTENED ITS FOOTPRINT IN HIGH GROWTH MARKETS Strong footprint in 2015 Acquisitions since 2010 Asia #1 P&C international insurer #3 Life & Savings international insurer Euro 4.2 billion MedLA #2 P&C insurer in Mexico #3 P&C insurer in Turkey #3 insurer in Nigeria Euro 0.7 billion CEE #3 direct motor insurer in Poland 1 Euro 0.2 billion A13 Full Year 2015 Earnings Presentation February 25, 2016 All notes and sources for rankings are on pages A51 of this document

14 ASIA SIGNIFICANTLY CONTRIBUTES TO GROUP RESULTS x2 APE In Euro million 584 1,171 Euro 2.0 billion Cumulative total underlying earnings In Euro million 551 FY x1.8 NBV In Euro million FY10 1 FY11 FY12 FY13 A14 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

15 AXA HAS FOCUSED ON EFFICIENCY WHILE INVESTING IN DIGITAL COST SAVINGS (in mature Life & Savings and Property & Casualty entities) In Euro billion Savings net of Euro 950 million invested in digital since 2013 Initial target June 2011 Updated February 2013 Updated August 2014 Actual A15 Full Year 2015 Earnings Presentation February 25, 2016

16 AXA S DIGITAL TRANSFORMATION IS GATHERING MOMENTUM INVESTING ACROSS THE VALUE CHAIN SCOUT Distribution, multichannel 30% 15% Offer design Euro 950 million ENGAGE Customer analytics 22% 34% Automation and process SEEDING THE FUTURE Euro 230 million in Euro 100 million in Euro 75 million in INVEST KAMET 1 A16 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

17 AXA IS A LEADER IN RESPONSIBLE INVESTING AND SUSTAINABILITY Divest from the companies most exposed to coal related activities Representing Euro 0.5 billion of divestment Publication of 2015 carbon footprint 284 tons of CO 2 per $ million of revenue 1 Achieved 96 th percentile ranking among insurers based on 2015 DJSI score Up from 81 st percentile in 2011 A17 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

18 AXA IS WELL SET FOR THE FUTURE BALANCED BUSINESS MIX in % of Group pre-tax underlying earnings 1 TOP GLOBAL BRAND 5 25% Protection & Health 2 36% Savings 3 & Asset Management 39% Property & Casualty 4 STRONG BALANCE SHEET Solvency II ratio - TOP INNOVATIVE INSURANCE COMPANY 205% 230% Target range 170% N 1 insurance company in the Top 50 Most innovative companies 6 A18 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

19 Financial performance Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO

20 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A20 Full Year 2015 Earnings Presentation February 25, 2016

21 UNDERLYING EARNINGS UNDERLYING EARNINGS In Euro million UNDERLYING EARNINGS BY SEGMENT 5,060 +2% 5,574 Constant In Euro million Change Forex Life & Savings 3,132 3,503 +3% Property & Casualty 2,158 2,230-1% Asset Management % International insurance % Banking % Holdings % Underlying earnings 5,060 5,574 +2% Change is at constant Forex A21 Full Year 2015 Earnings Presentation February 25, 2016

22 ADJUSTED EARNINGS ADJUSTED EARNINGS In Euro million DETAILS OF ADJUSTED EARNINGS 5,503 +2% 6,008 In Euro million Underlying earnings 5,060 5,574 Net realized capital gains/losses o/w realized capital gains o/w net impairments o/w hedging of equity portfolio Adjusted earnings 5,503 6,008 Change is at constant Forex A22 Full Year 2015 Earnings Presentation February 25, 2016

23 NET INCOME NET INCOME In Euro million DETAILS OF NET INCOME 5,024 +3% 5,617 In Euro million Adjusted earnings 5,503 6,008 Change in fair value & forex o/w gains (losses) on interest rate economic hedges not eligible for hedge accounting under IAS 39 o/w gains (losses) on Forex economic hedges not eligible for hedge accounting under IAS 39 o/w change in fair value of assets accounted for as fair value option Exceptional & discontinued operations Integration & restructuring costs Intangibles amortization & other Net income 5,024 5,617 Change is at constant Forex A23 Full Year 2015 Earnings Presentation February 25, 2016

24 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A24 Full Year 2015 Earnings Presentation February 25, 2016

25 L&S NEW BUSINESS SALES AND MARGINS BY MARKET In Euro million Mature markets High growth markets Total Total New business sales (APE) 5,341 +6% 6,075 o/w Hong Kong -12% o/w other high growth +12% +1% + = 1,136 1,301 6,477 +5% 7,376 New business margin 31% -1 pt 30% +2 pts 49% 51% + = 34% -1 pt 34% A25 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis

26 L&S NEW BUSINESS SALES AND MARGINS BY BUSINESS APE (Euro million) NBV margin Net Flows (Euro billion) Business line change G/A Protection & Health 2,681 +4% 52% G/A Savings 943-7% 19% Unit-Linked 2, % 31% Mutual Funds & Other % 6% Total 7,376 +5% 34% A26 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis

27 L&S PRE-TAX UNDERLYING EARNINGS BY BUSINESS TOTAL LIFE & SAVINGS 1 In Euro million G/A PROTECTION & HEALTH In Euro million G/A SAVINGS In Euro million UNIT-LINKED In Euro million 4,105 +3% 4,518 2,133 +2% 2, % 840-4% 822 1,048 1,296 + Higher mortality margin in France Lower administrative expenses Higher fees due to increased + + (Euro +0.1 billion) and the US sales and higher average asset base - Accelerated amortization of - Lower investment margin from deferred premium loadings and lower reinvestment yields DAC in the US (Euro -0.1 billion) + - Annuitization assumption changes in Japan Higher result from US VA GMxB as an improved hedge margin and lower expenses more than offset reserve strengthening (Euro -0.1 billion) for policyholder behavior Changes are on a comparable 2 basis Full detail in appendix on pages B28 to B34 A27 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

28 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A28 Full Year 2015 Earnings Presentation February 25, 2016

29 P&C REVENUES BY SEGMENT TOTAL In Euro million PERSONAL LINES In Euro million 29,460 +1% 31,265 +2% 17,162 18,057 Average price effect of +3.2% Motor revenues up 3% Non-motor revenues up 1% COMMERCIAL LINES In Euro million 0% 12,104 13,005 Average price effect of +2.4% Revenues evolution driven by tariff increases, offset by lower volumes due to selective underwriting A29 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis

30 P&C PRICE EFFECT BY COUNTRY AND SEGMENT Personal Lines Price Revenues Price evolution effect 1 growth evolution effect 1 1 Commercial Lines Revenues growth 2016 market pricing trends France +2.3% +1.4% +4.4% -1.1% Germany +3.3% +3.4% +0.8% +1.7% UK & Ireland +5.5% +3.4% +0.5% +4.8% Switzerland -1.2% -1.4% +0.4% -1.0% Belgium +2.6% -0.2% +1.2% -1.9% MedLA % -1.0% +4.2% -2.3% Expected slowdown in price increases from increased competition Early signs of hardening in Commercial lines Stabilization in Personal lines Hardening of the cycle in Motor Increasing competition in Commercial Lines Continued price softening in both Personal and Commercial lines Price decreases in both Personal and Commercial lines from increased competition Price softening for Motor in Italy Signs of hardening in Spain Asia % +7.8% -0.4% +7.2% Direct +3.8% +7.7% Total +3.2% +2.0% +2.4% +0.2% Prices expected to increase Prices expected to be stable Prices expected to decrease A30 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

31 P&C REVENUES AND MARGINS BY MARKET Mature markets High growth markets Direct Total In Euro million 22,378 0% 23,374 o/w Asia +8% o/w Turkey 0% +1% 29,460 31,265 Revenues + +3% + = +7% 5,159 4,721 2,361 2, % excluding adverse claims experience in Turkey Current year combined ratio 97.1% 96.3% 98.7% 100.9% % 99.3% = 97.6% -0.2pt 97.3% A31 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis for revenues and at constant Forex for current year combined ratio

32 P&C UNDERLYING EARNINGS P&C UNDERLYING EARNINGS In Euro million COMBINED RATIO Current year combined ratio + Prior year reserve developments All-year combined ratio 2,158-1% 2, Lower Nat Cat Price increases and lower frequency Higher severity 97.6% 97.3% 1.9% 0.6% -0.6% -1.0% 95.6% excluding Turkey reserve strengthening and with normalized Nat Cat level % 96.2% Natural catastrophes INVESTMENT INCOME (pre-tax) In Euro million 2,133-8% 2,019 Investment yield of 3.6% vs. 3.9% in Decrease mainly driven by non-repeat of exceptional mutual funds dividends in France in (Euro 71 million) and lower reinvestment yields Changes are at constant Forex Full detail in appendix on pages B37 to B41 A32 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

33 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A33 Full Year 2015 Earnings Presentation February 25, 2016

34 AM ASSETS UNDER MANAGEMENT Average AUM and net flows in Euro billion Revenues in Euro million Net flows (incl. Joint Ventures) 1 Average AUM (excl. Joint Ventures) Revenues (excl. Joint Ventures) % 618 1,151 +4% 1,242 Euro 34 billion from Joint Ventures in Asia in vs. Euro 15 billion in Average AUM and net flows in Euro billion Revenues in Euro million Net flows Average AUM +3% Revenues 0% ,175 2,580 A34 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis All notes are on pages A51 of this document

35 AM UNDERLYING EARNINGS ASSET MANAGEMENT In Euro million In Euro million +5% +1% In Euro million -2% A35 Full Year 2015 Earnings Presentation February 25, 2016 Full detail in appendix on pages B43 to B44 Changes are at constant Forex

36 FINANCIAL PERFORMANCE Group earnings Life & Savings Property & Casualty Asset Management Balance sheet A36 Full Year 2015 Earnings Presentation February 25, 2016

37 ASSET & LIABILITY MANAGEMENT (1/4) Diversified and resilient investment portfolio Real estate 5% Listed equities 4% Cash 4% Other fixed income 2 7% Corporate bonds Total General Account invested assets 83% in Fixed income 34% Euro 552 billion 3 Alternative investments 1 41% 3% Policy loans 1% Govies & related Life & Savings 4.0% Limited yield dilution Fixed income Assets duration as at December 31, 2015 Property & Casualty 3.9% 3.8% 3.7% 8.0 years 5.0 years Long asset duration leading to a slow yield dilution Life & Savings 3.7% 3.6% Average rating of government and related bonds FY10 FY11 FY12 FY13 maintained in the AA range Property & Casualty Average rating of corporate bonds maintained in the A range 4.0% 4.0% 3.9% 3.9% 3.9% 3.6% FY10 Full detail in appendix on pages B47 to B62 FY11 FY12 FY13 A37 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

38 ASSET & LIABILITY MANAGEMENT (2/4) Diversified and resilient investment portfolio Government and related bonds rating 41% of total General Account invested assets in Corporate bonds rating 1 34% of total General Account invested assets in 42% AA AA 15% 33% A AAA 22% Euro 225 billion AAA 11% Euro 190 billion Non rated 3% Below investment grade 1% 17% BBB 14% A Below investment grade 8% 33% BBB Average rating of government and related bonds maintained in the AA range Average rating of corporate bonds maintained in the A range A38 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

39 ASSET & LIABILITY MANAGEMENT (3/4) Well diversified and high quality new investments New fixed income investments in Resilient new investment yield Investment Grade credit Average rating: A ~57% new investments Government bonds & related Average rating: AA ~27% Below Investment ~12% Grade credit 1 ABS ~5% Yield on new investments in fixed income assets for Life & Savings and Property & Casualty entities Eurozone 2.0% US 3.3% Japan 1.4% Switzerland 1.5% Total 2.1% Focus on investment grade credit ~84% Corporate bonds ~10% Other loans ~5% Commercial Real Estate loans Euro 65 billion Amount invested in Fixed income in 1. Mainly short duration high yield A39 Full Year 2015 Earnings Presentation February 25, 2016

40 ASSET & LIABILITY MANAGEMENT (4/4) Life & Savings General Account investment spreads and margin Inforce business New business Spread above guaranteed rates Resilient investment margin 1 Spread above guaranteed rate +160 bps 80 bps 79 bps Guidance: 3.6% bps +160bps 2.1% 2.0% 0.5% Yield on total L&S asset base Reinvestment yield on L&S fixed income assets L&S average guaranteed rate L&S average guaranteed rate Significant buffer to cover guarantees and to manage crediting rates to preserve investment margin Average reserves of Euro 352 billion Products sold in combination with higher margin Unit-Linked business (hybrid 2 sales) A40 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

41 SHAREHOLDERS EQUITY Shareholders equity Key drivers of change In Euro billion In Euro billion vs Net income for the period Undated Subordinated debt interest charges Dividends Change in net unrealized capital gains Change in pension benefits Forex movements net of hedging Other -0.5 A41 Full Year 2015 Earnings Presentation February 25, 2016

42 DEBT & RATINGS Financial debt Debt ratios In Euro billion Debt Gearing 24% 23% Interest Cover 2 9.9x 10.7x Ratings A+ positive as of 29/10/ Aa3 stable as of 20/01/2016 Undated subordinated debt Cash AAstable as of 06/10/2015 Subordinated debt 1 Senior debt A42 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

43 SOLVENCY II RATIO Solvency II ratio Key sensitivities In Euro billion 201% 205% Solvency II ratio Ratio as of Dec 31, % Interest rate +50bps 207% +2 pts Interest rate -50bps 197% -8 pts Corporate spreads +75bps 205% 0 pt Available capital Required capital Equity markets +25% 208% Equity markets -25% 199% +3 pts -6 pts Solvency II ratio roll-forward 212% +5 pts -9 pts -1 pt -1 pt 205% 9M15 Operating return Dividend Market impact excl. forex Forex & other A43 Full Year 2015 Earnings Presentation February 25, 2016

44 GROUP EMBEDDED VALUE In Euro billion Operating return Economic & other non-operating variances Dividend paid to shareholders in 2015 Forex & other 18% operating return on Group EV driven by strong performance across all business lines Required capital definition aligned with Solvency II methodology for (Euro +0.5 billion included in Forex & other) A44 Full Year 2015 Earnings Presentation February 25, 2016

45 L&S OPERATING FREE CASH FLOWS AND INTERNAL RATE OF RETURN Life & Savings Operating Free Cash Flows In Euro billion Higher cash flow from Euro 0.5 billion lower cash requirement from L&S new business in EEA entities under Solvency II Expected inforce surplus generation New business investments Operating Free Cash Flow Expected inforce surplus generation New business investments Operating Free Cash Flow Solvency II pro-forma Life & Savings Internal Rate of Return 10.9% 11.5% 12.5% 14.2% 14.2% 17.5% 14.4% Incremental IRR following lower cash consumption from L&S new business in EEA entities under Solvency II FY10 FY11 FY12 FY13 A45 Full Year 2015 Earnings Presentation February 25, 2016

46 STRONG CASH FLOW GENERATION & REMITTANCE In Euro billion vs. growth % +7% Of which Euro 0.6 billion repayment of US loan in the form of cash up-streamed to AXA SA Additional cash flows following lower cash consumption from Life & Savings new business in EEA entities under Solvency II Solvency II pro-forma Remittance ratio 86% 87% Operating Free Cash Flows Cash remitted from entities 1 A46 Full Year 2015 Earnings Presentation February 25, 2016 Changes are on a comparable basis All notes are on pages A51 of this document

47 SENSITIVITIES TO MARKET CONDITIONS LIMITED INTEREST RATE SENSITIVITY Per annum cumulative impacts confirmed Assumed reinvestment yield 2.0% 2.4% Estimated impact on Underlying Earnings 1 ca. -0.2bn ca. -0.1bn LIMITED EQUITY SENSITIVITY RESILIENT SOLVENCY II RATIO Underlying earnings impact through separate account fees from a -10% movement in equity markets 2 Solvency II ratio estimated as at February 24, 2016 ca. -0.1bn ca. 190% A47 Full Year 2015 Earnings Presentation February 25, 2016 All notes are on pages A51 of this document

48 Concluding remarks Henri de Castries, Chairman & CEO

49 CONCLUDING REMARKS Key takeaways Going forward Successful Ambition AXA delivery Well positioned for future growth Strong and resilient Balance Sheet Accelerate transformation Further improved business mix Resilience to market conditions High quality invested assets Sustainable dividend Earnings and dividend growth Next strategic plan reveal on June 21, 2016 A49 Full Year 2015 Earnings Presentation February 25, 2016

50 Q&A FULL YEAR 2015 EARNINGS

51 NOTES (1/2) Page A9 1. Compound annual growth rate, on a reported basis 2. Adjusted ROE: return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average shareholders equity excluding undated debt and reserves related to change in fair value 3. Average shareholders equity excluding undated debt and reserves related to change in fair value Page A10 1. Solvency II ratio under AXA s internal model which was approved by the ACPR (Autorité de Contrôle Prudentiel et de Résolution) on November 18, /2009 financial crisis: impact of the evolution of markets between March 2008 and March 2009 combined with credit losses observed during this period financial crisis: impact of the evolution of markets between January 2011 and January 2012 Page A11 1. Includes post tax impacts from interest rate movements mainly on P&C investment income and Life & Savings investment margin assuming a 2.0% reinvestment yield in 2016 Page A12 1. General Account 2. Restated for the sale of Canadian operations Page A13 1. Transaction pending, subject to customary closing conditions Ranking sources : Asia Life and Savings : based on 2014 Asia ex-japan life insurance premiums - Source: OCI, MAS, KLIA, TII, Plan for Life, ISI, CIRC, TLAA, LIAM, IRDA, BAPEPAMLK, PIC, IRI, company data, Credit Suisse estimates; As published in Credit Suisse, Asia Life Insurance Sector, October 2, 2015; Asia P&C: based on 2012 Asia ex-japan P&C insurance premiums. Source: OCI, MAS, KIDI, TII, APRA, ISI, IRI, CIRC, OIC, Bank Negara, IRDA, BAPEPAMLK, PIC, AVI, company data, Credit Suisse estimates; As published in Credit Suisse, Asia P&C Insurance Sector, November 13, 2013; Mexico: AMIS (Asociacion Mexicana de instituciones de Seguros) as of September 2015.Turkey: Turkish Association of Insurance Companies as of November 30, 2015; Nigeria: Various NIA Digest and NAICOM website; Poland (direct motor business): KNF, companies reports, AXA estimates; Page A pro forma of the AXA APH transaction Page A16 1. Transaction pending, subject to customary closing conditions Page A17 1. As measured on 75% of AXA s General Account business Page A18 1. Before holding costs 2. General Account Protection & Health 3. General Account Savings and Unit Linked businesses. Also includes Banking 4. Including International Insurance 5. Source: Interbrand 2015 Best Global Brands ranking 6. Source: 2015 Most innovative companies tenth annual survey from the Boston Consulting Group s (BCG) A51 Full Year 2015 Earnings Presentation February 25, 2016

52 NOTES (2/2) Page A27 1. Including Mutual Funds & Other. Pre-tax Underlying Earnings for Mutual Funds & Other amounted to Euro 85 million for and Euro 97 million for 2. Changes are adjusted for Forex and changes related to scope with the acquisition of Colpatria in Colombia in 2014 Page A30 1. Renewals only Page A32 1. Assuming Natural catastrophes contributing 1 point of combined ratio in (vs. actual 1.9 points) and in (vs. 0.6 point) Page A34 1. AXA IM s joint ventures in Asia (China, Korea and India) are included at 100% in net flows, opening and closing assets under management but are excluded from revenues and average assets under management as they are not fully consolidated Page A37 1. Mainly Private Equity and Hedge Funds 2. Other fixed income include Asset backed securities (Euro 9 billion), residential loans (Euro 12 billion), commercial & agricultural loans (Euro 18 billion) and agency pools (Euro 1 billion) 3. invested assets referenced in page 57 of the financial supplement are Euro 779 billion, which include notably Euro 195 billion of Unit-Linked assets and Euro 36 billion related to the banking segment Page A38 1. Non rated by external rating agencies corporate bonds reallocated under AXA s internal ratings: AAA: Euro 0.4 billion / AA: Euro 1.6 billion / A : Euro 3.4 billion / BBB: Euro 4.4 billion / BIG: Euro 2.1 billion Page A40 1. Group investment margin on total General Account business 2. Hybrid products are savings products allowing clients to invest in both Unit-Linked and General Account assets Page A42 1. Including Euro -0.6 billion of reversal of mark-to-market on interest rates derivatives in vs. Euro -0.4 billion in 2. Including undated debt interest charges Page A46 1. Includes cash dividends from the operating entities, cash proceeds from the loan repayments to the Group and cash held at regional holding level to finance acquisitions Page A47 1. Includes post tax recurring cumulative impacts mainly on P&C investment income and Life & Savings investment margin 2. Assuming an upfront 10% drop in equity markets compared to 2015 average level A52 Full Year 2015 Earnings Presentation February 25, 2016

53 DEFINITIONS AXA s financial statements have been examined by the Board of Directors on February 24, 2016 and are subject to completion of audit procedures by AXA s statutory auditors. AXA's results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of December 31, Underlying Earnings, Adjusted Earnings, APE, NBV and Group Operating Free Cash Flows are non-gaap measures and as such are not audited, may not be comparable to similarly titled measures reported by other companies and should be read together with our GAAP measures. Management uses these non- GAAP measures as key indicators of performance in assessing AXA s various businesses and believes that the presentation of these measures provides useful and important information to shareholders and investors as measures of AXA s financial performance. For a reconciliation of underlying and adjusted earnings to net income see pages A22 and A23 of this presentation. Life & Savings New Business Value (NBV) is the value of the new business sold during the reporting period. The new business value includes both the initial cost (or strain) to sell new business and the future earnings and return of capital to the shareholder. AXA Group Embedded Value is the sum of Life & Savings EEV and Shareholders Equity of other businesses. Life & Savings high growth markets: APE and NBV: China, Czech Republic, Hong Kong, India, Indonesia, Mexico, Morocco, Philippines, Poland, Singapore, Thailand and Turkey; Revenues: Colombia, Czech Republic, Hong Kong, Indonesia (excl. bancassurance entity), Mexico, Morocco, Poland, Singapore, Slovakia and Turkey. Property & Casualty high growth markets: Revenues: Colombia, the Gulf Region, Hong Kong, Malaysia, Mexico, Morocco, Singapore, Thailand, and Turkey. CEE (Central and Eastern Europe L&S and P&C): Poland (L&S only), Czech Republic and Slovakia and Russia (P&C only). Russia (RESO) is not included in revenues due to consolidation under equity method. South-East Asia, India and China (L&S): APE and NBV: China, India, Indonesia, Philippines, Singapore and Thailand; Revenues: Singapore and nonbancassurance subsidiaries in Indonesia; China, India, Philippines, Thailand and bancassurance business in Indonesia are not included in revenues due to consolidation under equity method; Malaysian operations are not consolidated. MedLA (Mediterranean and Latin American Region L&S and P&C): Colombia, Greece, the Gulf region (P&C only), Italy, Mexico, Morocco, Portugal, Spain and Turkey. Lebanon and Nigeria are not included in revenues due to consolidation under equity method (P&C only). Asia (P&C): Hong Kong, Malaysia, Singapore and Thailand. China and India are not included in revenues due to consolidation under equity method. Indonesian operations are not consolidated. Direct (P&C): AXA Global Direct (Belgium, France, Italy, Japan, Poland, Portugal, South Korea and Spain), UK Direct operations. In France, Natio is not included in revenues due to consolidation under equity method. A53 Full Year 2015 Earnings Presentation February 25, 2016