Full Year 2012 Earnings

Transcription

1 Full Year 2012 Earnings February 21, 2013 Presentation

2 Cautionary note concerning forward-looking statements 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, 2011, 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. A2 AXA Earnings February 21, 2013

3 Table of contents Introduction & highlights Page A4 by Henri de Castries, Chairman and CEO Update on Ambition AXA delivery Page A13 by Denis Duverne, Deputy CEO financial performance by Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO Page A21 Concluding remarks Page A51 by Henri de Castries, Chairman and CEO A3 AXA Earnings February 21, 2013

4 Resumed earnings growth with strong Free Cash Flow generation Underlying Earnings Operating Free Cash Flows 1 In Euro billion In Euro billion +9% +11% * Pre-tax +10% Underlying Earnings Changes are at constant Forex Change is on a reported basis * Restated for the change in deferred acquisition costs (DAC) accounting methodology adopted retrospectively as at January 1, 2012 A4 AXA Earnings February 21, 2013 All notes are on page A53 of this document

5 Comfortable solvency level, supported by strong operating return Economic solvency ratio* +26 pts +6 pts 206% 183% -7 pts -2 pts operating return dividend Market effects Other Debt gearing Solvency I ratio 27% 26% 233% 1 188% At historical highs ** * Including US equivalence ** Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A5 AXA Earnings February 21, 2013 All notes are on page A53 of this document

6 Dividend yield above 5% In Euro per share Strong earnings and operating Free Cash Flows generation Robust balance sheet Dividend yield of 5.4% based on share price as at 31/12/2012 Payout ratio 1 of 40% A6 AXA Earnings February 21, 2013 All notes are on page A53 of this document

7 Our business model Focused multi-liner Global & efficient Core businesses: Property & Casualty Protection & Health Savings and Asset Management Optimize footprint and cost structure Active capital management Attract talent Customer centric Deliver financial performance 102 million clients (~2/3 retail, ~1/3 corporate) Multi-channel / multi-access: ~60,000 proprietary distributors 1 ~60,000 non proprietary 2 (brokers, IFAs, bancassurance ) Objective to provide shareholders with: Steady earnings and dividend growth 13 to 15% Adjusted ROE 1. Incl. Direct ; 52% of total revenues 2. 48% of total revenues A7 AXA Earnings February 21, 2013

8 Well diversified earnings and reserves Underlying Earnings total Underlying Earnings: Euro 4,251 million Split of pre-tax Underlying Earnings 1 by product Property & Casualty and International G/A Protection & Health Insurance reserves average reserves: Euro 546 billion Property & Casualty and International (+3% vs. ) Split of insurance reserves by product 11% G/A Protection & Health 42% 32% Savings Unit-Linked 26% 29% 26% 35% Savings and Asset Management 2 Savings General Account Change is on a reported basis A8 AXA Earnings February 21, 2013 All notes are on page A53 of this document

9 Property & Casualty and International businesses Build on strong footprint to leverage growth opportunities Global footprint Well diversified product portfolio Revenues by geography Revenues by business Other 1% International 10% Direct 7% High growth markets 12% Continental Europe 58% International 10% Commercial Non-Motor 28% Personal Motor 32% UK & Ireland 13% Total: Euro 31.3 billion Commercial Motor 8% Total: Euro 31.3 billion Personal Non-Motor 22% Technical excellence built on strong footprint in Europe #1 global P&C insurer in Asia 1 Unique Direct franchise with strong growth potential Expand further profitable commercial lines 55% of revenues from retail clients, with a focus on developing multi-access and telematics Revenues nearly doubled from Euro 16.7bn in 1999 to Euro 31.3bn in 2012 Current year combined ratio down 5.5pts vs. FY09 A9 AXA Earnings February 21, 2013 All notes are on page A53 of this document

10 Protection & Health business Proven track record of profitable growth In Euro million Other 5% High growth markets 22% Germany 10% Balanced geographic scope Switzerland 14% APE: Euro 2,445 million France 25% US 8% Japan 17% In Euro million APE Growing new business and consistent underwriting result 1,802 FY10 2,184 2,445 Combined ratio consistently below 95% since 2007 Comprehensive product range answering growing clients needs Protection: build on existing unique capabilities (distribution, product development) to push innovation and reduce time to market Health: strong global footprint A10 AXA Earnings February 21, 2013

11 Savings and Asset Management businesses Well positioned to benefit from markets recovery Savings Average savings reserves: Euro 331 billion G/A Savings Third party clients 48% Asset Management AuM split by client AXA companies 52% 58% 42% Spread business Notably in France, Germany, the US and Switzerland Unit-Linked Fee based business Mostly in the US, France and UK 19% 25% 55% Equities Fixed income Other closing AuM: Euro 903 billion Earnings mostly driven by asset base evolution Win-win relationship between AXA s insurance companies and asset managers Focus on extracting more value from a large inforce portfolio Resumed positive net flows in 2H12 A11 AXA Earnings February 21, 2013

12 Table of contents Introduction & highlights Page A4 by Henri de Castries, Chairman and CEO Update on Ambition AXA delivery Page A13 by Denis Duverne, Deputy CEO financial performance by Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO Page A21 Concluding remarks Page A51 by Henri de Castries, Chairman and CEO A12 AXA Earnings February 21, 2013

13 We are focused on delivering on our Ambition AXA strategy Ambition AXA Mature markets Sustainable growth in earnings & operating Free Cash Flows Selectivity High growth markets Double our size Acceleration Efficiency Everywhere with a focus on mature markets A13 AXA Earnings February 21, 2013

14 We are progressing on Ambition AXA financial objectives In Euro per share Underlying Earnings per share In Euro billion Group operating Free Cash Flows % % 1.69 Ambition AXA CAGR +5% to +10% Ambition AXA cumulative Euro 24 billion FY10 published* published* FY10 Adjusted return on equity 1 Debt gearing 12.0% 10.0% 13.3% 13% to 15% 28% 26% 26% 25% FY10 published* published* Ambition AXA 2015 FY10 published* published* Ambition AXA 2015 * Not restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A14 AXA Earnings February 21, 2013 All notes are on page A53 of this document Changes are on a reported basis

15 Ambition AXA: reshaping the Life & Savings business Higher profitability through improved business mix APE by product NBV margin In Euro million 5,780 13% 5,733 10% 6,170 11% APE growth CAGR FY10- NBV margin by product 22% G/A Protection & Health 25% Unit-Linked G/A Savings 53% 28% 5% 31% >28% 31% 32% 32% +5% 25% 20% 17% -15% FY10 published Ambition AXA 2015 New Business IRR 31% 38% 40% +16% 10.9% 11.5% 12.5% >15% FY10 Mutual funds & other G/A Savings Unit-Linked Changes are on a reported basis G/A Protection & Health FY10 Ambition AXA 2015 A15 AXA Earnings February 21, 2013

16 Ambition AXA: fostering P&C profitability Combined ratio improvement well on track, with a unique Direct franchise Change is at constant Forex AXA Group combined ratio AXA Global Direct Unique Direct franchise 99.5% -1.9pts 97.9% 97.6% o/w +0.7pt from reserve strengthening in Turkey <96.0% Global integrated low cost platform, with presence in 9 countries (in Europe and Asia) More than 5 million policies sold in 2012 Targeting the most price sensitive clients, relying on converging IT solutions 63% of new business coming through internet In Euro billion Direct premiums FY10 exceptional item in Turkey Ambition AXA 2015 Euro -117 million reserve strengthening impact on Underlying Earnings due to the increase in both frequency and average costs of bodily injury legal claims in Motor and Liability Source: Redburn A16 AXA Earnings February 21, 2013 All notes are on page A53 of this document

17 Ambition AXA: acceleration in high growth markets Growing high growth markets 1 contribution In Euro million P&C gross revenues 1,000 FY07 3,335 3,843 Contribution to Group P&C revenues 4% 12% 14% ICBC-AXA on track to create a leading franchise China APE in Euro million, 100% share July 2012: launch of the new joint-venture ,061 Life & Savings APE FY07 Contribution to Group APE 4% 16% 17% Increased contribution from high growth markets Jan.-June 2011 Jul.-Dec Jan.-June 2012 Note: AXA Group share decreased from 51% to 27.5% in July 2012 Jul.-Dec A17 AXA Earnings February 21, 2013 All notes are on page A53 of this document

18 Ambition AXA: improving flows in Asset Management Rebounding assets under management Growing Underlying Earnings Average AUM in Euro billion In Euro million FY10 In Euro billion Improving net flows 1H10 2H10 1H11 2H11 1H H12 FY10 Going forward Continue to improve investment performance Further develop multi expert active asset management model through product innovation and geographical diversification A18 AXA Earnings February 21, 2013

19 Ambition AXA cost savings plan On track to deliver an increased Euro 1.7 billion target Euro 0.4 billion savings achieved in Ambition AXA efficiency program in mature markets In Euro billion Additional Euro 0.2 billion from Life & Savings acquisition costs Euro 1.1 billion from maintaining Life & Savings and P&C administrative costs Euro 0.4 billion from P&C acquisition costs achievement achievement FY13E - FY15E - FY15E A19 AXA Earnings February 21, 2013

20 Table of contents Introduction & highlights Page A4 by Henri de Castries, Chairman and CEO Update on Ambition AXA delivery Page A13 by Denis Duverne, Deputy CEO financial performance by Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO Page A21 Concluding remarks Page A51 by Henri de Castries, Chairman and CEO A20 AXA Earnings February 21, 2013

21 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A21 AXA Earnings February 21, 2013

22 Underlying Earnings (1/2) Underlying Earnings Underlying Earnings by segment In Euro million +9% In Euro million * Reported basis Constant Forex 4,251 Life & Savings 2,138 2, % +19% 3,772 Property & Casualty 1,848 1,895 +3% +1% Asset Management % +14% International Insurance % -37% Banking % -86% Holdings % +1% * Underlying Earnings 3,772 4, % +9% Change is at constant Forex * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A22 AXA Earnings February 21, 2013

23 Underlying Earnings (2/2) In Euro million o/w Euro -117m from reserve strengthening in Turkey , ,772 Lower positive prior year reserve developments Improved VA GMxB results in the US * Life & Savings P&C International insurance Asset management, Banking Holdings Forex * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A23 AXA Earnings February 21, 2013

24 Adjusted Earnings In Euro million Adjusted Earnings +28% 4,548 3,460 Details of Adjusted Earnings In Euro million Underlying Earnings Net realized capital gains/(losses) Realized capital gains/losses * 3,772 4,251 (312) Impairments Hedging of equity portfolio Adjusted Earnings (840) (283) (154) (235) 3,460 4,548 ROE * 10.3%* 13.3% Change is at constant Forex Adjusted Earnings increase mainly driven by lower impairments and higher realized capital gains * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A24 AXA Earnings February 21, 2013

25 Net Income In Euro million Net Income +44% In Euro million Details of Net income * 4,190-4% 4,152 Adjusted Earnings Change in fair value Exceptional and discontinued operations 1 3,460 4, ,069 (94) Excluding 1.4bn main exceptional items (gains on disposals and US goodwill reduction) 2,807 Restructuring costs Intangibles amortization and other 2 Net Income (281) (244) (1,167) (103) 4,190 4, : mainly Euro 902 million exceptional realized gains on the sale of AXA Canada, Euro 798 million from exceptional realized gains on the sale of the 15.6% stake in Taikang Life and Euro 626 million exceptional realized gains on the AXA APH transaction. 2. : mainly Euro -943m goodwill reduction attributable to US Accumulator Variable Annuity book of business. * Changes are at constant Forex Net Income mainly impacted by increased Adjusted Earnings more than offset by the non-repeat of Euro 1.4 billion main exceptional items * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A25 AXA Earnings February 21, 2013

26 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A26 AXA Earnings February 21, 2013

27 L&S New business sales and margins by market In Euro million Mature markets High growth markets Total 4,808 +2% 5,109 o/w AXA Asia 1 up 17% o/w CEE down 34% 2 5,733 +3% 6,170 New business sales (APE) + +4% = 925 1,061 New business 29% 42% 44% 22% + = margin 25% 31% A27 AXA Earnings February 21, 2013 Changes are on a comparable basis 3 All notes are on page A53 of this document

28 L&S New business sales and margins by business Continued improvement in business mix APE (Euro million) NBV margin Change G/A Protection & Health 2,184 2,445 +7% 53% Strong sales in South-East Asia, India and China (marketing campaigns and launch of ICBC-AXA joint-venture), Hong Kong, Japan (Term Rider and Long Term Protection products), and France G/A Savings 1,155 1,044-10% 5% Discipline in a low profitability environment, mainly in Italy, Germany and France Unit-Linked 1,809 1,977 +2% 28% Strong performance in the US (non-gmxb products sales), Japan and Italy, partly offset by CEE and the UK Mutual funds & Other % 4% Strong performance in the US and the UK (success of Elevate platform) Total 5,733 6,170 +3% 31% A28 AXA Earnings February 21, 2013 Changes are on a comparable basis

29 L&S Underlying Earnings Underlying Earnings In Euro million High growth markets +18% Mature markets +19% +19% In Euro million Rollforward Lower charges on US GMxB Variable Annuity , ,635 2, ,138 Higher DAC amortization, mainly in the US, and new business growth 2,283 1,857 * Changes are at constant Forex * Investment margin UL fees & margin on revenues Technical margin Acquisition expenses Administrative expenses Forex, tax, scope & other * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A29 AXA Earnings February 21, 2013 Full detail in appendix on pages B14 to B19

30 Focus on the US VA GMxB losses limited to under 1% of Group earnings US Variable Annuity GMxB Underlying Earnings (post tax) * In Euro million, net of DAC and tax * ** 1H12 Total VA base fees & other, less expenses GMxB hedge margin (291) (90) (156) o/w Basis (75) (19) (16) o/w Volatility (168) (35) (59) o/w Interest rates, credit spreads & other (48) (36) (81) Total reserve strengthening (200) (17) (148) o/w lapse experience / assumptions (200) 0 (273) o/w other policyholder behavior 0 (137) (217) o/w management actions including premium suspension & model refinements/ assumptions o/w move of GMxB accumulation phase to risk neutral long term rate of 3% VA GMxB Underlying Earnings (325) (7) (28) Refined reserving framework Reduced interest rate hedging by 25%: greater value upside in rising interest rates Overall, US Life & Savings contributed Euro 522 million to Group Underlying Earnings US: 12% US: 20% Expected to reduce the risk of future significant reserve strengthening AXA Underlying Earnings: Euro 4.3 billion AXA Life &Savings Underlying Earnings: Euro 2.6 billion * Notional tax rate of 35% ** Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A30 AXA Earnings February 21, 2013

31 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A31 AXA Earnings February 21, 2013

32 P&C Revenues by segment In Euro million Total +3% Personal lines 27,046 +3% 28,315 16,309 16,876 Average price increase of +2.9% Increase in volumes (+1,124k net new contracts) offset by lower average premium +3% Commercial lines 10,535 11,216 Average price increase of +3.1% More favorable business mix A32 AXA Earnings February 21, 2013 Changes are on a comparable basis

33 P&C Price increases by country and segment 3.0% price increase on average Personal lines Price increase Revenues growth Commercial lines Price increase Revenues growth 2013 market pricing trends France +2.3% +1.7% +5.7% +3.1% Germany +4.2% +5.8% +0.7% +1.7% UK & Ireland +4.8% +2.4% +4.1% +7.3% Switzerland -0.3% +2.6% -0.3% 0.0% Belgium +6.3% +0.6% +2.5% -2.1% MedLA +3.2% +3.1% +3.4% +3.6% Trends likely to continue in personal lines Continued strong market price increases in Motor Slowing pricing trends in personal lines Commercial lines remain very competitive Trends likely to continue Prices likely to continue to increase in Personal Lines Impact of economic slowdown in Southern Europe Asia +0.2% +8.6% +1.4% +13.7% Direct +1.0% +1.5% Total +2.9% +2.8% +3.1% +3.1% Prices expected to be stable Prices expected to increase Price increase expected to accelerate vs. price increase A33 AXA Earnings February 21, 2013

34 P&C Revenues and margins by market Strong sales in high growth markets and improved current year combined ratio In Euro million Mature markets High growth markets Direct Total Revenues +2% 21,609 22,257 o/w UK Direct down 17% o/w other countries up 9% + + = +12% +3% 27,046 28,315 3,335 3,843 +2% 2,102 2,215 Current year combined ratio 99.3% 98.3% o/w 1.1pts from reserve strengthening in Turkey 100.0% 101.0% % 100.5% = 99.6% -0.8pt 98.8% A34 AXA Earnings February 21, 2013 Changes are on a comparable basis

35 P&C Underlying Earnings Improved combined ratio P&C Underlying Earnings Combined ratio In Euro million 1,848 +1% 1,895 Current year combined ratio 99.6% 0.7% % 0.4% + Price increases Lower expenses Increase in freeze (+0.4 pt) Prior year reserve developments -1.7% % Reserve strengthening in Turkey (+0.6pt) 97.9% All-year combined ratio 97.6% Natural Catastrophes In Euro million -2% Investment income 2,034 2,007 Asset yield at 3.9% Changes are at constant Forex A35 AXA Earnings February 21, 2013 Full detail in appendix on pages B28 to B31

36 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A36 AXA Earnings February 21, 2013

37 AM Assets under management Improving net flows In Euro billion Average AUM +2% net inflows: Euro +3 billion Q12 2Q12 3Q12 4Q12 In Euro billion Average AUM -3% net outflows: Euro -4 billion Q12 2Q12 3Q12 4Q12 A37 AXA Earnings February 21, 2013 Changes are on a comparable basis

38 AM Underlying Earnings and revenues In Euro million Underlying Earnings In Euro million Revenues -3% 3,269 3, % Change is on a comparable basis In Euro million Expenses 2,764-5% 2,745 Change is at constant Forex Change is at constant Forex A38 AXA Earnings February 21, 2013

39 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A39 AXA Earnings February 21, 2013

40 Shareholders equity In Euro billion Shareholders equity Key drivers of change vs. Increase in net unrealized capital gains billion + Net income for the period +4.2 billion - dividends -1.6 billion - Change in pension benefits -0.8 billion published Change in DAC accounting methodology adopted retrospectively as at 01/01/12 restated - Forex movements net of hedging instruments -0.6 billion A40 AXA Earnings February 21, 2013 All notes are on page A53 of this document

41 Economic solvency In Euro billion Economic solvency 1 including US equivalence 183% 206% Key sensitivities Ratio as of December 31, % Interest rate+100 bps 213% Interest rate -100 bps 191% Equity markets +25% 209% Equity markets -25% 200% Corporate spreads +75bps* 204% Available capital Required capital Economic solvency ratio * Net of change in liquidity premium as defined in QIS 5 A41 AXA Earnings February 21, 2013 All notes are on page A53 of this document

42 Debt gearing In Euro billion Net financial debt Debt ratios Debt Gearing 2 27%* 26% Interest Cover 3 9.1x 9.3x Debt gearing improvement mainly affected by dividends received from entities net of dividend paid Undated subordinated debt Subordinated debt 1 Senior debt Cash * Restated for the change in DAC accounting methodology adopted retrospectively as at January 1, 2012 A42 AXA Earnings February 21, 2013 All notes are on page A53 of this document

43 Asset & Liability Management (1/3) Interest rate management in General Account Life & Savings Duration gap L&S asset yield L&S net investment margin 3.9% 3.8% 73 bps 78 bps Guidance: bps Asset duration as at December 31, 2012 Life & Savings 7.7 years Property & Casualty 4.7 years Property & Casualty P&C asset yield 4.0% 3.9% Duration gap tightly managed at less than 1 year Caps, floors and swaptions to protect the balance sheet AXA asset yield definition: Net underlying investment income on General Account assets Average General Account asset base at amortized cost A43 AXA Earnings February 21, 2013

44 Asset & Liability Management (2/3) Investment policy in Fixed income for Life & Savings and P&C entities Investment portfolio overview Current investment policy on Fixed income Real Estate 5% Listed equities 3% Cash 6% Other fixed income 2 7% Corporate bonds 31% Alternative investments 1 3% Policy loans 1% Govies and related 45% ABS ~7% Short duration high yield ~7% Secured financial bonds ~10% 2012 Reinvestment rate on Fixed income assets for Life & Savings and P&C entities Eurozone 3.2% US 2.7% Japan 1.6% Switzerland 2.2% Total 2.7% Amount reinvested Loans ~7% Government bonds ~30% Corporate bonds ~40% Euro 48 billion Total insurance invested assets 3 : Euro 491 bn All notes are on page A53 of this document A44 AXA Earnings February 21, 2013 Full detail in appendix on pages B37 to B54

45 Asset & Liability Management (3/3) Life & Savings investment spreads Inforce business Spread above guaranteed rates New business New business reinvestment rate on fixed income assets above guarantees offered 160bps 3.8% 200bps 2.2% 2.7% 0.7% Yield on total L&S asset base L&S average guaranteed rate 1 Yield on L&S fixed income assets L&S average guaranteed rate 1 Significant buffer to cover guarantees Average reserves of Euro 347 billion Products sold to attract higher margin Unit-Linked business A45 AXA Earnings February 21, 2013 All notes are on page A53 of this document

46 financial performance Group earnings Life & Savings Property & Casualty Asset Management Balance sheet Embedded Value and operating Free Cash Flows A46 AXA Earnings February 21, 2013

47 Group Embedded Value In Euro billion Group EV at 37.3bn % operating return on Group EV from strong performance across all business segments Key drivers of change in Group EV In Euro billion IFRS TNAV +52% + Operating return +6.3 billion Investment experience +0.9 billion + Forex & other +0.2 billion Definition of IFRS TNAV = IFRS shareholders equity + off balance sheet net unrealized capital gains and losses - undated subordinated debt - net intangible assets - dividend -1.6 billion A47 AXA Earnings February 21, 2013

48 Life & Savings operating Free Cash Flows In Euro billion FY10 New business IRR at 10.9% New business IRR at 11.5% New business IRR at 12.5% Expected inforce surplus generation New business investments (capital and cash strain) Life & Savings operating Free Cash Flows Stable new business investments with higher IRR driven by an improved business mix A48 AXA Earnings February 21, 2013

49 Group operating Free Cash Flows In Euro billion Operating Free Cash Flows 4.2 Life & Savings 1.8 Property & Casualty Asset Management Strong increase driven by Life & Savings Remittance ratio In Euro billion Excluding proceeds from disposals Operating Free Cash Flows Cash dividends from entities Stable remittance ratio from entities FY10 Remittance ratio 75% 76% 74% A49 AXA Earnings February 21, 2013 All notes are on page A53 of this document

50 Table of contents Introduction & highlights Page A4 by Henri de Castries, Chairman and CEO Update on Ambition AXA delivery Page A13 by Denis Duverne, Deputy CEO financial performance by Denis Duverne, Deputy CEO & Gérald Harlin, Group CFO Page A21 Concluding remarks Page A51 by Henri de Castries, Chairman and CEO A50 AXA Earnings February 21, 2013

51 Main achievements in 2012 Ambition AXA: halfway there and well on track Growth and performance Underlying earnings +9% Adjusted earnings +28% Dividend up to Euro 0.72 Adjusted Return on Equity 13.3% Economic Solvency at 206% +23 pts Shareholders equity at 53.7bn +16% Debt gearing at 26% Stronger balance sheet 2012 Ambition AXA: successful implementation Selectivity shift towards products that address ever-evolving client needs Acceleration in high growth markets and segments Efficiency reinforced to improve our competitiveness United States: contribution to Group s Life & Savings underlying earnings 20% Asset Management: 2012 Q4 net inflows +7bn Crisis-borne issues addressed A51 AXA Earnings February 21, 2013

52 Q&A session Q&A session A52 AXA Earnings February 21, 2013

53 Notes Page A4 1. Operating Free Cash Flows correspond: (i) for Life & Savings, to the expected inforce surplus generation (cash and capital) net of New Business investment (capital and cash strain). (ii) For Property & Casualty and Asset Management, to the underlying earnings, realized capital gains and changes in local solvency requirements related to internal growth Page A5 1. Net of proposed 2012 dividend to be paid in 2013 Page A6 1. Based on Adjusted Earnings, net of undated debt interest charges Page A8 1. Excluding Holdings 2. Including G/A Savings, Unit-Linked and Banking Page A9 1. Ranking based on 2010 GWP among international insurers in Asia P&C excl. Japan. Source: AXCO, AXA estimates. Pro forma of the HSBC transaction, incl. non-consolidated entities, incl. South Korea direct business Page A14 1. 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 Page A16 1. Main Europe based peers Page A17 1. In Life & Savings, high growth markets are: Hong Kong, Central & Eastern Europe (Poland, Czech Republic, Slovakia and Hungary), South-East Asia (Singapore, Indonesia, Philippine and Thailand), China, India, Morocco, Mexico and Turkey In Property & Casualty, high growth markets are: Morocco, Mexico, Turkey, Gulf, Hong-Kong, Singapore, Malaysia, Russia, Ukraine and Poland (exc. Direct) Page A27 1. Operations in Asia excluding Japan 2. Closing of pension fund new business in Poland and Hungary following changes in regulation 3. Change on a comparable basis corresponds to: For activity indicators, constant exchange rates, scope and methodology For earnings and profitability indicators, constant exchange rates Page A40 1. Of which Eurozone peripheral countries: Euro billion Page A41 1. AXA internal economic model calibrated based on adverse 1/200 years shock Page A42 1. Including Euro -0.1 billion of reversal of mark-to-market on interest rate derivatives vs. Euro -0.3 billion in 2. (Net financing debt + undated subordinated debt) divided by (shareholders equity incl. undated subordinated debt excl. FV in shareholders equity + net financing debt) 3. Including interest charge on undated subordinated debt Page A44 1. Mainly Private Equity and Hedge Funds 2. Mortgage loans & other include residential loans (Euro 12 billion), commercial & agricultural loans (Euro 10 billion) and Agency Pools (Euro 3 billion) 3. invested assets referenced in page 57 of the financial supplement are Euro 677 billion including notably Euro 147 billion of Unit-linked contracts and Euro 34 billion related to the banking segment Page A45 1. Projected based on 1H12 Page A49 1. Including International insurance 2. Including Banking activity A53 AXA Earnings February 21, 2013

54 Definitions financial statements are subject to completion of audit procedures by AXA s independent auditors. AXA's results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission at December 31, Adjusted earnings, underlying earnings, Life & Savings EEV, Group EV, 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 A25 of this presentation. AXA Life & Savings EEV consists of the following elements: (i) Life & Savings Adjusted Net Asset Value (ANAV) which represents tangible net assets. It is derived by aggregating the local regulatory (statutory) balance sheets of the life companies and reconciled with the Life & Savings IFRS shareholders equity. (ii) Life & Savings Value of Inforce (VIF) which represents the discounted value of the local regulatory (statutory) profits projected over the entire future duration of existing liabilities. 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 EV is the sum of Life & Savings EEV and Shareholders Equity of other businesses A54 AXA Earnings February 21, 2013