axa · life & savings 1,835 1,915 +4% property & casualty 1,286 1,176 -6% asset management...
TRANSCRIPT
August 3, 2016
AXA
HALF YEAR 2016 EARNINGS
Presentation
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, 2015, 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.
A3 | Half Year 2016 Earnings | Presentation | August 3, 2016
TABLE OF CONTENTS
INTRODUCTION & HIGHLIGHTS
Thomas Buberl, incoming CEO
1H16 FINANCIAL PERFORMANCE
Gérald Harlin, Group CFO
CONCLUDING REMARKS
Thomas Buberl, incoming CEO
PAGE A4
PAGE A13
PAGE A38
Introduction & highlights
Thomas Buberl, incoming CEO
A5 | Half Year 2016 Earnings | Presentation | August 3, 2016
1H16 RESULTS
Resilient earnings
Strong balance sheet
Profitable business growth
Clear growth drivers despite adverse market conditions
A6 | Half Year 2016 Earnings | Presentation | August 3, 2016
RESILIENT UNDERLYING EARNINGS
3.1 3.1
1H15
restated
0%
1H16
In Euro billion
Changes are at constant Forex and excluding Genworth and Portugal
Underlying earnings
In Euro billion
Life & Savings
In Euro billion
Property & Casualty
Natural catastrophes
were higher in 1H16 than
1H15 by Euro 0.1bn
+4%
1H15
restated
1.8
1H16
1.9
1.3
-6%
1H15
restated
1.2
1H16
A7 | Half Year 2016 Earnings | Presentation | August 3, 2016
RESILIENT EARNINGS
-2%
1H16
1H15
restated
3.4 3.5
In Euro billion
Adjusted earnings
+4%
1H16
1H15
restated
3.2
3.1
In Euro billion
Net income
Changes are at constant Forex and excluding Genworth and Portugal
A8 | Half Year 2016 Earnings | Presentation | August 3, 2016
STRONG AND RESILIENT BALANCE SHEET
All notes are on pages A43 and A44
Equity markets -25%
Equity markets +25%
Corporate spreads +75bps
Interest rate -50bps
Interest rate +50bps
Ratio as of June 30, 2016
1H16
197%
1Q16
200% Target
range
High Solvency II ratio at 197% with strong operating return
partly offsetting adverse market impacts and accrued dividend2
230%
170%
Strong Solvency II ratio1
Resilience to market movements
197%
202%
192%
196%
200%
188%
A9 | Half Year 2016 Earnings | Presentation | August 3, 2016
FOCUSED ON PROFITABLE GROWTH
Changes are on a comparable basis
Euro 3.3 bn Annual Premium Equivalent
37.3% NBV margin
Life &
Savings
Property &
Casualty
Asset
Management
High new business profitability
Profitable business and growing revenues
+3.7% Gross revenues
Strong net inflows
Euro 9 bn 2Q16 net inflows
Euro 19 bn 1H16 net inflows
96.0% All year combined ratio
A10 | Half Year 2016 Earnings | Presentation | August 3, 2016
Other1
14%
HEALTH: HIGH QUALITY FRANCHISE
1H16 all year
combined ratio
*Includes Health reported in both Life & Savings and Property & Casualty
+3%
1H16
6,240
1H15
restated
6,112
Gross
revenues
Mexico
4%
France
UK
Euro 6.2
billion
gross
revenues
6 strongholds
5 targeted geographies2
Germany
Japan
Hong Kong
3%
95.5%
23%
27%
17%
11%
Changes are on a comparable basis
All notes are on pages A43 and A44
Strong footprint
Growth and high profitability*
In Euro billion
A11 | Half Year 2016 Earnings | Presentation | August 3, 2016
RESILIENCE TO ADVERSE MARKET CONDITIONS
… in line with
IR Day guidance
1H16 L&S INVESTMENT MARGIN 74bps
3.5% 1H16 P&C INVESTMENT YIELD1
2.0% 1H16 REINVESTMENT YIELD1
All notes are on pages A43 and A44
A12 | Half Year 2016 Earnings | Presentation | August 3, 2016
AMBITION 2020: CLEAR ACTIONS TO GROW EARNINGS
M&A
1%
Technical
margin
2%
Growth
2%
Efficiency
3%
Building blocks of underlying earnings per share CAGR 2015 – 2020E1
-5% ; -1% 2015 –
2020E
UEPS
CAGR
3% - 7%
Management control – 8% UEPS CAGR
+ =
Interest
rates
headwinds
All notes are on pages A43 and A44
1H16 Financial performance
Gérald Harlin, Group CFO
A14 | Half Year 2016 Earnings | Presentation | August 3, 2016
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
1H16 FINANCIAL PERFORMANCE
A15 | Half Year 2016 Earnings | Presentation | August 3, 2016
UNDERLYING EARNINGS
1H15
restated
3,075
0%
3,063
1H16
UNDERLYING EARNINGS
UNDERLYING EARNINGS BY SEGMENT
In Euro million1H15
restated1H16 Change
Life & Savings 1,835 1,915 +4%
Property & Casualty 1,286 1,176 -6%
Asset Management 222 213 -3%
International Insurance 126 86 -32%
Banking 56 60 +7%
Holdings -451 -387 +14%
Underlying earnings 3,075 3,063 0%
Changes are at constant Forex and excluding Genworth and Portugal
In Euro million
A16 | Half Year 2016 Earnings | Presentation | August 3, 2016
ADJUSTED EARNINGS
3,364
-2%
3,457
1H16 1H15
restated
Change is at constant Forex
In Euro million1H15
restated1H16
Underlying earnings 3,075 3,063
Net realized capital gains/losses 382 301
o/w realized capital gains 471 479
o/w net impairments -86 -194
o/w hedging of equity portfolio -2 16
Adjusted earnings 3,457 3,364
interest charges on undated debt -154 -140
average adjusted shareholders' equity 41,270 44,225
Adjusted ROE1 16.0% 14.6%
In Euro million
ADJUSTED EARNINGS
DETAILS OF ADJUSTED EARNINGS
All notes are on pages A43 and A44
A17 | Half Year 2016 Earnings | Presentation | August 3, 2016
NET INCOME
3,207
+4%
3,077
1H16 1H15
restated
Change is at constant Forex
In Euro million1H15
restated1H16
Adjusted earnings 3,457 3,364
Change in fair value & Forex -250 -647
o/w gains (losses) on interest rate economic hedges not
eligible for hedge accounting under IAS 39-411 -357
o/w gains (losses) on Forex economic hedges not eligible
for hedge accounting under IAS 3943 -160
o/w change in fair value of assets accounted for as fair
value option118 -130
Exceptional and discontinued operations -36 626
Integration & restructuring costs -52 -91
Intangibles amortization and other -42 -45
Net income 3,077 3,207
In Euro million
NET INCOME
DETAILS OF NET INCOME
A18 | Half Year 2016 Earnings | Presentation | August 3, 2016
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
1H16 FINANCIAL PERFORMANCE
A19 | Half Year 2016 Earnings | Presentation | August 3, 2016
L&S – NEW BUSINESS SALES AND MARGINS BY MARKET
New business
sales
(APE)
Total
In Euro million
+ =
New business
margin + =
1H15 restated 1H16
-5%
2,575 2,682
699680
+11%
1H16 1H15 restated
-2%
1H16
3,274
1H15 restated
3,362
-11 pts
1H16
39%
1H15 restated
48% 37% 37%
0 pt
1H15 restated 1H16
+2 pts
1H15 restated
35%
1H16
37%
High growth
markets Total Mature markets
Changes are on a comparable basis
A20 | Half Year 2016 Earnings | Presentation | August 3, 2016
APE
(Euro million)
NBV
margin
Net Flows
(Euro billion)
Business line 1H16 change 1H16 1H15
restated 1H16
G/A Protection & Health 1,326 +6% 54% +5.0 +3.8
G/A Savings 745 +22% 16% -2.22 -0.4
of which G/A capital light1 422 +16% 26% -0.8 +2.3
Unit-Linked 939 -18% 39% +2.42 +0.8
Mutual Funds & Other 265 -21% 6% +0.4 0.0
Total 3,274 -2% 37% +5.6 +4.3
L&S – NEW BUSINESS SALES AND MARGINS BY BUSINESS
Changes are on a comparable basis
All notes are on pages A43 and A44
A21 | Half Year 2016 Earnings | Presentation | August 3, 2016
Non-repeat of exceptional positive
reserve developments in France
(Euro -0.1 billion)
Lower investment margin
Higher net technical margin
L&S – UNDERLYING EARNINGS BY BUSINESS
Changes are on comparable basis for pre-tax earnings and on constant forex excluding Genworth and Portugal for post-tax earnings
TOTAL LIFE & SAVINGS1
(post-tax) In Euro million
G/A PROTECTION
& HEALTH (pre-tax)
In Euro million
G/A SAVINGS (pre-tax)
In Euro million
UNIT-LINKED (pre-tax)
In Euro million
Full detail in appendix on pages B24 to B29
-4%
1H16
1,169
1H15
restated
1,166
415425
1H15
restated
-2%
1H16
1H15
restated
732
-11%
1H16
647
+
- -
+
-
- Lower mortality margin in the US
partly offset by Mexico and Japan
Lower administrative expenses
Lower management fees (Euro
-0.1 billion) mainly due to lower
average asset base (mainly linked
to the decline and recovery in
equity markets over the period)
1H16
1,915 1,835
1H15
restated
+4%
= Indicates negative one-off impacts which are partly offset by higher positive tax one-offs (Euro 0.1 billion)
TOTAL LIFE & SAVINGS
(post-tax) In Euro million
1H16
1,915 1,835
1H15
restated
+4%
A22 | Half Year 2016 Earnings | Presentation | August 3, 2016
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
1H16 FINANCIAL PERFORMANCE
A23 | Half Year 2016 Earnings | Presentation | August 3, 2016
P&C – REVENUES BY SEGMENT
• Average price effect of +6.0%
• Motor revenues up 4%
• Non-motor revenues up 3%
+4%
1H16
18,602
1H15
18,183
+4%
10,231 10,326
1H15 1H16
7,876
+3%
1H16
8,194
1H15
• Average price effect of +3.5%
• Revenues’ evolution driven by tariff
increases combined with higher
volumes
COMMERCIAL LINES In Euro million
PERSONAL LINES In Euro million
TOTAL In Euro million
Changes are on a comparable basis
A24 | Half Year 2016 Earnings | Presentation | August 3, 2016
Price
evolution
Revenues
growth
Price
evolution1
Revenues
growth
France +0.7% +2.8% +1.7% -2.0%
Germany +2.7% +1.8% +0.7% +4.1%
UK & Ireland +6.2% +6.5% +1.5% +5.4%
Switzerland 0.0% +1.1% +0.1% +0.7%
Belgium +2.4% -0.6% +1.2% +1.3%
MedLA2 +19.5% +6.2% +12.2% +5.8%
Asia3 +0.1% +8.2% -1.0% -0.2%
Direct +6.0% +6.8%
1H16Personal Lines Commercial Lines
Total +6.0% +4.0% +3.5% +2.6%
P&C – PRICE EFFECT BY COUNTRY AND SEGMENT
Prices expected
to be stable
Prices expected
to decrease
Prices expected
to increase
FY16 market pricing trends
Continued price softening in both Personal and
Commercial lines
Price softening for Motor in Italy
Signs of hardening in Spain
Hardening of the cycle in Motor Increasing competition in Commercial Lines
Increased pressure on prices from stronger
competition
Price decreases in both Personal and Commercial
lines from increased competition
Increased competition on brokerage in Personal lines
Price hardening in Commercial lines
All notes are on pages A43 and A44
Changes are on a comparable basis
A25 | Half Year 2016 Earnings | Presentation | August 3, 2016
P&C – REVENUES AND MARGINS BY MARKET
+ + = Revenues
Current year
combined
ratio
=
+1.3 pts
1H16
98.2%
1H15
96.9%
18,602
1H15
18,183
+4%
1H16
+6%
1H16
1,451
1H15
1,389
1H15
2,743
1H16
+11%
2,712
+2%
1H16
14,082 14,407
1H15
+ +
High growth
markets Total
1H16
96.0% 97.3%
1H15 1H15
99.9%
1H16
102.3%
1H16
98.8% 98.5%
1H15
In Euro million
Direct Mature markets
+13% on an economic
gross revenues basis1
Changes are on a comparable basis for revenues and at constant Forex excluding Genworth and Portugal for current year combined ratio
All notes are on pages A43 and A44
A26 | Half Year 2016 Earnings | Presentation | August 3, 2016
P&C – UNDERLYING EARNINGS
COMBINED RATIO
P&C UNDERLYING EARNINGS In Euro million
-6%
1H16
1,176
1H15
1,286
Current year
combined ratio
Prior year reserve
developments
All-year
combined ratio
98.2%
1H15
1H16
96.9% 0.1%
Higher natural catastrophe charges
Higher claims severity
Price increases and lower frequency
+
Full detail in appendix on pages B33 to B36
Natural catastrophes
+
-1.8%
1H15 1H16
-2.1%
-
-
1H16 1H15
95.1% 96.0%
0.8%
INVESTMENT INCOME (pre-tax)
In Euro million
-3%
1H16
1,006
1H15
1,071
Annualized investment yield of 3.5%
vs. 3.7% in 1H15
Changes are on constant forex excluding Genworth and Portugal
A27 | Half Year 2016 Earnings | Presentation | August 3, 2016
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
1H16 FINANCIAL PERFORMANCE
A28 | Half Year 2016 Earnings | Presentation | August 3, 2016
AM – ASSETS UNDER MANAGEMENT
Average AUM and net flows in Euro billion
Revenues in Euro million
Average AUM (excl. Joint Ventures)
589626
-5%
1H15
1H16
453460
-1%
1H16 1H15
Net flows (incl. Joint Ventures)1
Net flows
+2
+7
1H15 1H16
Average AUM
Revenues (excl. Joint Ventures)
Revenues
583632
1H16 1H15
-7%
1H15
+28
+17
1H16
Average AUM and net flows in Euro billion
Revenues in Euro million
-8%
1,216 1,324
1H15 1H16
Euro 16 billion from Joint Ventures in Asia in
1H16 vs. Euro 19 billion in 1H15
Changes are on a comparable basis
All notes are on pages A43 and A44
A29 | Half Year 2016 Earnings | Presentation | August 3, 2016
AM – UNDERLYING EARNINGS
ASSET MANAGEMENT In Euro million
213222
-3%
1H16 1H15
98108
-9%
1H16 1H15
116115
1H16
+3%
1H15
In Euro million
In Euro million
Full detail in appendix on pages B40 to B41
Changes are at constant Forex
A30 | Half Year 2016 Earnings | Presentation | August 3, 2016
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
1H16 FINANCIAL PERFORMANCE
A31 | Half Year 2016 Earnings | Presentation | August 3, 2016
1H16*
3.4%
FY15
3.6%
FY14
3.7%
FY13
3.7%
FY12
3.8%
FY11
3.9%
FY10
4.0%
ASSET & LIABILITY MANAGEMENT (1/4) Diversified and resilient investment portfolio
1H16 Total General Account
invested assets 83% in Fixed income
Limited yield dilution
Govies
& related
Corporate
bonds
Fixed income Assets duration
as at June 30, 2016
Life & Savings 8.3 years
Property & Casualty 5.4 years
Long asset duration leading to a slow
yield dilution
Life & Savings
Property & Casualty
1H16*
3.5%
FY15
3.6%
FY14
3.9%
FY13
3.9%
FY12
3.9%
FY11
4.0%
FY10
4.0%
Real estate
5%
Listed equities
3%
Cash
6%
Other fixed income2
7%
Policy loans
1%
Alternative investments1
3%
42%
33%
Euro 598
billion3
Full detail in appendix on pages B44 to B57
Average rating of government and related bonds
maintained in the AA range
Average rating of corporate bonds
maintained in the A range
* Annualized
All notes are on pages A43 and A44
A32 | Half Year 2016 Earnings | Presentation | August 3, 2016
ASSET & LIABILITY MANAGEMENT (2/4) Diversified and resilient investment portfolio
Government and related bonds rating
42% of total General Account invested assets in 1H16
14%
33%
A
BBB
33% AA
AAA
Corporate bonds rating1
33% of total General Account invested assets in 1H16
16%
17%
A
BBB
43%
AAA
Non rated
1%
Below investment
grade
1%
12% Euro 250
billion
Euro 199
billion
AA
23%
Below investment
grade
8%
Average rating of government and related bonds
maintained in the AA range
Average rating of corporate bonds
maintained in the A range
All notes are on pages A43 and A44
A33 | Half Year 2016 Earnings | Presentation | August 3, 2016
ASSET & LIABILITY MANAGEMENT (3/4) Well diversified and high quality new investments
*Mainly short duration high yield
**Annualized
Investment Grade
credit
Average rating: A
New fixed income investments in 1H16 Resilient new investment yield
1H16 new
investments
ABS
Below Investment Grade credit*
Government bonds & related Average rating: AA
Yield on new investments in fixed income assets
for Life & Savings and Property & Casualty entities
1H16**
Eurozone 2.0%
US 2.6%
Japan 0.7%
Switzerland 1.2%
Total 2.0%
Euro
45 billion Amount invested in Fixed income
in 1H16
~10%
~35%
~6%
~49%
Focus on investment grade credit
~86%
Corporate bonds
~6%
Other loans
~8%
Commercial Real Estate loans
A34 | Half Year 2016 Earnings | Presentation | August 3, 2016
*Annualized
Inforce business New business
Products sold to attract higher margin
Unit-Linked business
1H16*
L&S average guaranteed rate
Yield on total L&S asset base
Spread above
guaranteed rates
Spread above
guaranteed rate
1H16*
L&S average guaranteed rate
Reinvestment yield on L&S fixed income assets
+140 bps
2.0%
3.4% +160 bps
0.4%
2.0%
Significant buffer to cover guarantees and to manage crediting
rates to preserve investment margin
Average reserves of Euro 360 billion
ASSET & LIABILITY MANAGEMENT (4/4) L&S General Account investment spreads and margin
Guidance:
65-75 bps
Resilient investment
margin1
74 bps
1H16*
78 bps
1H15*
All notes are on pages A43 and A44
A35 | Half Year 2016 Earnings | Presentation | August 3, 2016
SHAREHOLDERS’ EQUITY
In Euro billion
1H16
74.1
FY15
68.5
Shareholders’ equity Key drivers of change
In Euro billion
1H16 vs. FY15
Change in net unrealized capital gains +6.8
Net income for the period +3.2
Dividends -2.7
Change in pension benefits -0.8
Forex movements net of hedging -0.3
Subordinated debt -0.1
Other -0.4
+
-
-
+
-
-
-
A36 | Half Year 2016 Earnings | Presentation | August 3, 2016
Interest
Cover3
Debt
Gearing2
FY15
26%
10.7x
1H16 In Euro billion
DEBT & RATINGS
28%
16.2x
1H16
18.6
1.1
8.2
9.3
FY15
17.0
0.6
6.9
9.5
A+ positive
Aa3 stable
AA- stable
as of 29/10/2015
as of 25/07/2016
as of 28/06/2016
Financial debt Debt ratios
Ratings
Subordinated debt1
Senior debt
Undated subordinated debt
Euro 2 billion debt
issued in 1H16 to
refinance in
advance part of
outstanding debt
Explained by Euro
2 billion debt issued
in 1H16 to
refinance in
advance part of
outstanding debt
All notes are on pages A43 and A44
A37 | Half Year 2016 Earnings | Presentation | August 3, 2016
SOLVENCY II RATIO
Required capital
Available capital
1H16
29.2
57.4
FY15
28.8
59.2
Solvency II ratio 205% 197%
197%
Subordinated
debt, forex & other
1H16
+5 pts
Market impact
excl. forex
-16 pts
Dividend
-5 pts
Operating
return
+8 pts
FY15
205%
In Euro billion
Key sensitivities
Solvency II ratio roll-forward
+5 pts
-5 pts
-1 pt
+3 pts
-9 pts
Solvency II ratio
Equity markets +25%
Interest rate -50bps
Corporate spreads +75bps
Interest rate +50bps
Equity markets -25%
Ratio as of June 30, 2016 197%
202%
192%
196%
200%
188%
Concluding remarks
Thomas Buberl, incoming CEO
A39 | Half Year 2016 Earnings | Presentation | August 3, 2016
AMBITION 2020
New customer experience
From Payer to Partner
Adapt capabilities
FOCUS
Selective growth
Efficiency and margins
Capital and cash
TRANSFORM
A40 | Half Year 2016 Earnings | Presentation | August 3, 2016
AMBITIOUS TARGETS SET ON REALISTIC ASSUMPTIONS
UNDERLYING EARNINGS PER SHARE
EUR 28-32 bn Cumulative 2016E-2020E
GROUP OPERATING FREE CASH FLOWS
ADJUSTED RETURN ON EQUITY
SOLVENCY II RATIO
170% - 230% Target range
12% - 14% 2016E-2020E
3-7% CAGR 2015-2020E
A41 | Half Year 2016 Earnings | Presentation | August 3, 2016
AXA’S STRENGTHS
Strong and resilient balance sheet
Most diversified composite insurer
Strong cash flows supporting dividends
Early mover in Life & Savings product mix
Proven track record in efficiency gains
Clear vision “From payer to partner”
Renewed and dynamic management team
Q&A
HALF YEAR 2016 EARNINGS
A43 | Half Year 2016 Earnings | Presentation | August 3, 2016
NOTES (1/2)
Page A8 1. The Solvency II ratio is based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US equivalence. AXA’s
internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016 2. Solvency II ratio is estimated including a theoretical amount for dividends accrued for the first semester of 2016 based on half of the full year
dividend paid in 2016 for FY 2015. Dividends are declared by the Board at its discretion based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval. This estimate should not be considered in any way to be an indication of the actual dividend amount, if any, for the 2016 financial year
Page A10 1. Other MedLA countries (Gulf, Spain, Turkey, Colombia, Italy, Morocco, Greece), Asia P&C, South-East Asia, India & China, Belgium, the US
and Luxembourg 2. Gulf, Malaysia, Thailand, China and Indonesia Page A11 1. Investment and reinvestment yields are annualized. Reinvestment yield is on new investments in fixed income assets for Life & Savings and
Property & Casualty entities
Page A12 1. Average annual growth over the 5 year plan period; period-to-period results may vary Page A16 1. 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 Page A20 1. G/A Savings products which, at inception, create more AFR than the economic capital they consume 2. 1H15 figures were restated to take into account the reclassification at 1H16 of non-GMxB Variable Annuity product (SCS) in the US from G/A
Savings to Unit-Linked, to align with classification for APE and NBV. This reclassification explains the difference with the net flows reported page 75 of the financial supplement
Page A24 1. Renewals only 2. Mediterranean and Latin American Region: Italy, Spain, Greece, Turkey, Mexico, Morocco, Colombia, Gulf Region and Brazil 3. Hong Kong, Malaysia, Singapore and Thailand, on a 100% share basis
Page A25 1. Economic gross revenues: all entities are consolidated on a group share basis
Page A28 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
A44 | Half Year 2016 Earnings | Presentation | August 3, 2016
NOTES (2/2)
Page A31 1. Mainly Private Equity and Hedge Funds 2. Other fixed income include Asset backed securities (Euro 11 billion), residential loans (Euro 12 billion), commercial & agricultural loans (Euro
19 billion) and agency pools (Euro 1 billion) 3. 1H16 invested assets referenced in page 57 of the financial supplement are Euro 795 billion, which include notably Euro 164 billion of Unit-
Linked assets, Euro 36 billion related to the banking segment and Euro -2 billion of government bonds CDS and bond forwards. Page A32 1. Corporate bonds not rated by external rating agencies are reallocated under AXA’s internal ratings: AAA : Euro 0.3 billion / AA : Euro 1.3
billion / A : Euro 3.2 billion / BBB : Euro 4.2 billion / BIG : Euro 2.2 billion Page A34 1. Group investment margin on total Life & Savings General Account business Page A36 1. Including Euro 0.7 billion of reversal of mark-to-market on interest rates derivatives in 1H16 vs. Euro -0.6 in FY15 2. Starting 1H16, debt gearing is calculated gross of Holding company cash. FY15 debt gearing net of cash was reported at 23%. 3. Including undated debt interest charges
A45 | Half Year 2016 Earnings | Presentation | August 3, 2016
DEFINITIONS
AXA’s 1H16 financial statements are subject to a completion of limited review by AXA’s independent auditors.
AXA's 1H16 results have been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as
of June 30, 2016.
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 A16 and A17 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.
Life & Savings high growth markets: APE and NBV: China, Czech Republic, Hong Kong, India, Indonesia, Mexico, Morocco, Philippines,
Poland, Singapore, Slovakia, 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: Brazil, Colombia, the Gulf region, Hong Kong, Malaysia, Mexico, Morocco, Singapore,
Thailand, and Turkey.