Investor Day
December 1, 2020
Driving Progress
2023
2 | AXA Group Investor Day | December 1, 2020
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP FINANCIAL MEASURES
Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans, expectations or
objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that
could cause AXA’s actual results to differ materially from those expressed or implied in such forward looking statements. Please refer to Part 4 - “Risk Factors and Risk Management” of AXA’s Universal
Registration Document for the year ended December 31, 2019 (the “2019 Universal Registration Document”) and “Operating Highlights—Risk Factors” on pages 12 to 13 of AXA’s half-year financial
report as of June 30, 2020 (the “Half-Year 2020 Financial Report”), for a description of certain important factors, risks and uncertainties that may affect AXA’s business and/or results of operations,
particularly in respect of the Covid-19 crisis. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or
circumstances or otherwise, except as required by applicable laws and regulations.
In addition, this presentation refers to certain non-GAAP financial measures, or alternative performance measures (“APMs”), used by Management in analyzing AXA’s operating trends, financial
performance and financial position and providing investors with additional information that Management believes to be useful and relevant regarding AXA’s results. These non-GAAP financial
measures generally have no standardized meaning and therefore may not be comparable to similarly labelled measures used by other companies. As a result, none of these non-GAAP financial
measures should be considered in isolation from, or as a substitute for, the Group’s consolidated financial statements and related notes prepared in accordance with IFRS. A reconciliation from APMs
adjusted earnings, underlying earnings and combined ratio to the most directly reconcilable line item, subtotal or total in the financial statements of the corresponding period is provided on pages 19
and 20 of the Half-Year 2020 Financial Report. APMs adjusted return on equity and underlying earnings per share are reconciled to the financial statements in the tables set forth on page 26 of the Half-
Year 2020 Financial Report. The APM underlying return on equity is defined and reconciled to the financial statements in AXA’s 2020 Investor Day press release dated December 1, 2020. The calculation
methodology of the debt gearing is set out on page 22 of the Half-Year 2020 Financial Report. The above-mentioned and other non-GAAP financial measures used in this presentation (except
underlying return on equity) are defined in the Glossary set forth on pages 60 to 67 of the Half-Year 2020 Financial Report.
Investor Day
December 1, 2020
1
Strategic priorities
Thomas Buberl, Group CEO
4 | AXA Group Investor Day | December 1, 2020
AXA has delivered on the strategic themes of its 2016-20 plan…
Shift business profile
towards technical risks
Simplify the Group
Scale innovation in Health,
from Payer to Partner
AXA made a series of bold moves (including the disposal of
EQH
1
, the acquisition of XL and the Swiss Group Life
transformation), dramatically changing its profile with
now more than 80% of its profits
2
from higher-growing
P&C, Health and Protection lines
AXA significantly changed its organization, making local
entities more empowered and accountable to bring
decision making closer to its customers and enhance
performance. AXA also exited from non-core markets and
reinforced its presence in China
AXA leveraged its entrepreneurial culture and scale to
digitally enable its distribution partners to offer new
products and services to its customers (including mobile
first services, automated underwriting, telemedicine, e-KYC
and e-signature)
82%
Profits from
technical risks
2
14
disposals
3
ca. 0.5 million
teleconsultations
in 2020
4
5 | AXA Group Investor Day | December 1, 2020
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All notes are on pages 50 to 54
Global leader in
P&C Commercial lines
Growth avenues in Asia,
International and AXA IM
High performing operations in France and across Europe,
geared for sustained delivery through excellent distribution,
leadership in Health and P&C Commercial Lines, and best-in-
class technical performance
Global leader focused on underwriting discipline and growth,
benefitting from a unique product suite and geographic
reach in a hardening cycle
Pivoting to Health, including through innovation,
accelerating in Greater China (+10% p.a. to €1bn GWP
2
) and
with established franchises in Japan, HK and South East Asia,
and developing care partnerships in International
Accelerating in Alternatives in Asset Management (50% of
AXA IM earnings
3
, with 10% p.a. revenue growth
4
), expert in
ESG investing
Leader in the attractive
European market
€4bn
Underlying earnings
1
from France and Europe
€32bn
P&C Commercial lines
revenues
1
€2bn
Health revenues
1
in Asia
€152bn
AuM in Alternatives
5
AXA today
7 | AXA Group Investor Day | December 1, 2020
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AXA is uniquely positioned for post-Covid profitable growth
P&C price increases
due to low interest rates
Increasing
protection needs
Demand for simplicity
and speed
Contribute to building
a better society
Long-term trends
AXA’s unique position
82%
1
of business focused on technical risks, with upside on
price increases
Leading global insurer for Commercial lines (€32bn revenues
2
)
and Health leader (€14bn revenues
2
) across Europe and Asia
90%
3
of markets with Net Promoter Score at or above market
average, maintaining digital investments at a high level
Leader in climate transition (<1.5 degrees
4
) and
social inclusion on investment and insurance risk
8 | AXA Group Investor Day | December 1, 2020
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Driving Progress 2023: AXA’s five strategic actions
Expand Health and Protection
including through services, across all geographies
Simplify customer experience and accelerate efficiency
particularly in Europe and France
Grow cash-flows across the Group
through continued life in-force management and Group simplification, and disciplined capital management
Strengthen underwriting performance
notably at AXA XL
Sustain our climate leadership position
in shaping the climate transition
9 | AXA Group Investor Day | December 1, 2020
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Investor Day
December 1, 2020
2
France and Europe
Jacques de Peretti, CEO of AXA France
Antimo Perretta, CEO of Europe
10 | AXA Group Investor Day | December 1, 2020
France & Europe:
geared for
sustained delivery
Jacques de Peretti
Chairman & CEO of AXA France
(29 years at AXA)
Antimo Perretta
CEO of AXA in Europe
(13 years at AXA)
Uniquely positioned across all key markets
Strong performance track record
Growth in Health, simplified customer
experience and cost efficiencies
Significant contributor to AXA’s 2023 Plan
11 | AXA Group Investor Day | December 1, 2020
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Savings
Health
P&C
Protection
France and Europe uniquely positioned, with a consistent track record
Unique positioning across
all key markets
Consistent earnings delivery
Underlying earnings in Euro billion
Diversified business mix
FY19 gross revenues
FY18FY17FY16 FY19
3.7
3.8
4.1
4.3
38 million customers
Leading distribution franchise
with 45k agents & brokers
Euro 61 billion
FY19 gross revenues
Top 3 positions
1
in France, Switzerland, Belgium,
Germany and UK & Ireland
€61bn
12 | AXA Group Investor Day | December 1, 2020
All notes are on pages 50 to 54
Back to agenda
Sustainable performance across business lines
92.4%
FY16
95.1%
FY19
Earnings
Unit-Linked
Protection
G/A
Savings
66% of L&S mix
from UL & Protection
Health - Strong growth
Revenues in Euro billion
P&C - Excellent combined ratio
All-year combined ratio
L&S - Earnings driven by
technical and fee margins
FY19 L&S pre-tax underlying earnings
>5% revenue growth
in Health
2020E – 2023E CAGR
3
FY16 FY19
8.4
10.1
+6%
CAGR
Target TargetTarget
Unit-Linked share in
new sales to ca. 50%
2
by 2023E (+10pts vs. FY19)
ca. -1 point in
P&C all-year CoR
1
by 2023E
13 | AXA Group Investor Day | December 1, 2020
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Built in Germany with “MeineGesundheit”
Successful market-wide Health platform
ExpandHealth business through 2023, including through innovative services
International markets
Local markets
Partners & reinsurance
Global network (Maxis) & medical platform
Public schemes & population health management
Rolling out across Europe :
▪ Integrating all relevant health services
▪ Personalized and seamless experience
Tailored offering to local specificities
14 | AXA Group Investor Day | December 1, 2020
Scaling up our
Employee Benefits franchise
A unique, growing EB business
€13.2bn FY19 GWP
1
Orchestrating pan-European
Health ecosystem
From fragmented experience to
an Integrated platform
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Continue to simplify customer experience through 2023
OSE – simple, accelerated & delegated underwriting
From 55% to 75% share of new P&C CL sales, by 2023
NPS +10pts
above market average
P&C CL
1
NPS: 45%to 93%
entities at or above
market average
2
Best-in-class, digitally enabled advisory networks
From 70% to 100% of digitally enabled agents, by 2023
15 | AXA Group Investor Day | December 1, 2020
P&C Commercial lines in France
Phygital distribution across Europe
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Automation and digitization
70% to 90% straight-through processing
2,3
Accelerate efficiency and transformation, while reducing costs
Move to the Cloud
IT legacy decommissioning
ca. 30% legacy systems decommissioned
2
Product simplification
Reducing number of products
2
e.g. ca. -80% of P&C products in Spain
>90% of systems moved to the cloud
2
Euro 0.3 billion absolute reduction in cost base by 2023
1
Organizational redesign
Delayering, redefining roles & responsibilities
Optimization of real estate
Consolidation of office spaces
Moving to one roof policy in major locations
Technology Simpler processes
Organization & Office space
consolidation
By 2023
16 | AXA Group Investor Day | December 1, 2020
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Investor Day
December 1, 2020
3
AXA XL
Scott Gunter, CEO of AXA XL
17 | AXA Group Investor Day | December 1, 2020
AXA XL turnaround
in a favorable
market environment
Actions and leadership aligned to deliver €1.2bn
underlying earnings in 2021
Measures taken to improve underwriting
performance across the portfolio
Company-wide line size reduction and continued
management of Nat Cat exposure
Scott Gunter
CEO of AXA XL
Over 30 years of insurance industry experience
Joined AXA in February 2020 from Chubb, where he was
President of Chubb Commercial Insurance North America
18 | AXA Group Investor Day | December 1, 2020
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AXA P&C Commercial lines – Global and highly diversified leader
AXA #1 global leader
P&C commercial lines - Euro billion FY19 NEP
1
Chubb
AIG
Zurich
AGCS
AXA GI
90 100 110 120
0%
5%
10%
15%
Average CoR (2016-2019)
3
AGCS
AIG P&C CL
Zurich P&C CL
Chubb
NA CL
CoR volatility
2
AXA XL is highly diversified
FY19 GWP
Scope to improve performance
Reinsurance Prop Cat (5%)
Specialty (21%)
Property (16%)
Financial lines (13%)
Casualty (26%) Reinsurance other (20%)
AXA XL
Insurance
€14.1bn (76%)
Reinsurance
€4.5bn (24%)
19 | AXA Group Investor Day | December 1, 2020
AXA XL Insurance
AXA XL
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0%
2017 2018
-2%
2019
-1%
HY20
3%
8%
19%
6%
16%
AXA XL
4
Industry composite
5
1%
HY202017
6%
2018 2019
-3%
-1%
3%
4%
12%
11%
7%
2017 2018 2019
-1%
1%
HY20
16%
-2%
-4%
8%
4%
United States
28% GWP
3
Europe (ex UK)
25% GWP
3
Asia
2% GWP
3
Hard pricing cycle – “with legs”
P&C Insurance Commercial lines pricing change
1
Benefiting from favorable market conditions
2017 2018
5%
HY202019
-1%
4%
-2%
8%
6%
10%
8%
Lloyd’s
10% GWP
3
Achieving above market price
2
increases in Insurance across geographies
20 | AXA Group Investor Day | December 1, 2020
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-10%
-5%
0%
5%
10%
15%
20%
2014 2015 2016 2017 2018 2019 2020
AXA XL – Alignment and focus on turnaround priorities
Strong depth of underwriting talent
Complex organizational structure
Emphasis on top line growth
Elevated volatility of earnings
Effective execution on integration
Highly specialised, innovative,
client focused
Clear P&L accountability
Underwriting discipline
Volatility reduction
People, brand, legal mergers
Revenues and cost synergies
✓
1
2
3
3 key
priorities
✓
Unique global footprint
Breadth of product suite and
geographic reach
✓
21 | AXA Group Investor Day | December 1, 2020
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Clear P&L accountability – The right organization
Americas
Insurance
Global Support Functions
(Risk management, Finance, Legal, HR…)
Global Underwriting Office
Asia & Europe
Insurance
UK / Lloyds
Insurance
Global
Reinsurance
1
Clear P&L accountability with
a new organization by region
Complex organization across
products & countries
Duplicative and scattered
underwriting functions
Centralized client and broker
relationships
Regional and tailored distribution
strategy
From
To
New Global Underwriting Office,
centralized underwriting guidelines
Announced in April 2020, Implemented within 6 months
22 | AXA Group Investor Day | December 1, 2020
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Underwriting discipline – Focused on improving profitability
2
Insurance
Reinsurance
70%
62%
Combined ratio at or below 96%
2
2020 and 2021 underwriting actions moving the portfolio to profitability in 2021
Around 70% of products at or below 96% combined ratio planned for 2021
Combined ratio from 96% to 100%
2
NA Professional
1
Int’l Casualty
NA Property
NA Excess Casualty
Int’l Construction
1
Specialty
Int’l Property
Int'l Financial lines
NA Construction
1
Casualty
Specialty
NA Property Cat
NA Property Treaty
Multiline Quota-Share
Int’l Property & Cat
23 | AXA Group Investor Day | December 1, 2020
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Underwriting discipline – Case studies
2
Int’l Financial lines
NA Excess Casualty
NA Professional
Int’l Casualty
Property Cat
Mid-Market Casualty
Insurance
Reinsurance
Market
share est.
~ 4%
~ 8%
~ 12%
~ 4%
~ 4%
~ 5%
2020 key underwriting actions impacting 2021
▶ Cease underwriting Mgt Liability & Fin. Institutions in London
▶ Strong price increases on renewals, average limits < $10m
▶ Significant price increases, holding steady
▶ Lead umbrella limit at $10m, excess Casualty limit at $25m
▶ Strong new business, benefiting from flight to quality
▶ Significant rate increases with steady retention ratio
▶ Limited volume growth, shift business mix
▶ Capacity reduction, tightening Terms & Conditions
▶ Ongoing price increases, reduced worldwide exposures
▶ Active use of retrocessional reinsurance
▶ Focused on capturing price increases in primary Insurance
▶ Active limit management to monitor accumulations
Price
1
9M20
+27%
+77%
+23%
+10%
+11%
+10%
€ GWP
FY19
0.7bn
0.4bn
1.5bn
1.3bn
0.8bn
0.8bn
Grow | Maintain | Reduce
24 | AXA Group Investor Day | December 1, 2020
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Volatility reduction – Reducing risk limits and new Nat Cat load
3
Reducing net retention limits
per risk across the portfolio
€25m
target*
on new business and renewals
1
€50m
2019
Taking a more prudent approach to
normalised Cat load
3
in target setting
6%
Cat load
(vs. 4% of GEP
4
previously)
For underlying earnings target setting
*2020 YTD achievement:
-40% in policies
2
25 | AXA Group Investor Day | December 1, 2020
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1.2
+0.5
-0.1
-0.2
ca. 1.0
*
More prudent
Nat Cat load
(Nat Cat at 6%)
Underwriting
and pricing
(net of claims trend)
Lower
Investment
income
FY21E
2021 walk
FY20E
1
Actions and leadership all aligned to deliver €1.2bn UE by 2021
even assuming a more prudent Nat Cat load and offsetting impacts from low interest rates
ca.98%
FY20E
normalised
2
assuming
4% Nat Cat load
Combined Ratio
ca.96%
2021E
assuming
6% Nat Cat load
ex Covid and US riots
with normalised Cat (4%)
AXA XL Underlying earnings
In Euro billion
* €0.2bn
1
lower than 2020 UE target, of which €-0.1bn from lower Investment
income, €+0.1bn from higher pricing and €-0.2bn from higher claims cost
26 | AXA Group Investor Day | December 1, 2020
All notes are on pages 50 to 54
AXA XL turnaround
in a favorable
market environment
“I joined AXA XL because of the depth of
underwriting talent, breadth of product suite
and geographic reach, strong engagement
with brokers and clients and its unique
business franchise and AA-/Stable rating”
“We want to unlock the potential of AXA XL
with an aligned leadership team and clear
actions to deliver sustained performance and
profitable growth”
Scott Gunter
CEO of AXA XL
27 | AXA Group Investor Day | December 1, 2020
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Investor Day
December 1, 2020
4
Climate leadership
Thomas Buberl, Group CEO
28 | AXA Group Investor Day | December 1, 2020
Sustain our Climate
leadership position
29 | AXA Group Investor Day | December 1, 2020
AXA has been leading the way in Climate since
2015, reinforcing its commitments year-by-year
First to divest from coal, then ban insurance for
coal business, committing to a 0% coal world
New 2025 intermediate target to reduce our
G/A assets CO2 footprint by 20%
1
AXA 2020 Investor day Climate film
All notes are on pages 50 to 54
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Targeted “warming potential” of AXA’s
investments to below 1.5°C by 2050
Investor Day
December 1, 2020
5
Cash & Capital
Thomas Buberl, Group CEO
30 | AXA Group Investor Day | December 1, 2020
Strong cash upstream supporting dividends
Cash
remittance &
management
actions
Holding costs Stable debt
gearing
1
Dividends
2
Additional
cash
available
+14
-3
+3
-11
In Euro billion
Expected 2021 – 2023 cash
evolution at Holding
▶ Organic cash upstream of
Euro 5 to 6 billion p.a. by 2023
▶ Stronger weighting of cash upstream
targets in management compensation
starting 2021
▶ Euro 3 billion additional cash available
by 2023
+3
32 | AXA Group Investor Day | December 1, 2020
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Continued focus on reducing G/A exposure
Market leader in reduction of G/A reserves
2015 – 2019 variation in G/A reserves
-7%
+12%
AXA
in France
and Europe
1
European
peers
2
▶ Managing G/A Savings net flows to continue
to be negative through the plan period
(Euro -7 billion
3
since 2016)
▶ Extending our inforce actions to reduce
G/A and free up capital
Reinsurance, buyouts, run-off, disposals
(Euro ca. -27 billion reserves
4
since 2016)
33 | AXA Group Investor Day | December 1, 2020
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Ongoing simplification of the Group
14 disposals
1
since 2016
▶ Continued simplification of the Group
through disposals
▶ Earnings dilution from further disposals
to be compensated by share buybacks
10
transactions closed
4
deals signed
1
UK Life & Savings (2016), Serbia operations (2016), AXA Bank Hungary (2016), Bluefin in UK (2016), Romania operations (2017), German Pro Bav (2018), Equitable Holdings Inc. (2019), Ukraine
operations (2019), AXA Bank Belgium (2019), Central and Eastern European operations (2020), AXA Bank Germany (2020), India P&C (2020), Architas UK (2020) and Gulf operations (2020)
34 | AXA Group Investor Day | December 1, 2020
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Clear capital management principles
Solvency II
ratio
Dividends
Use of
excess cash
Target to hold Solvency II capital at around 190%
(50 points buffer above risk appetite limit of 140%)
18 to 22 points p.a. normalized Solvency II operating return
Payout within 55% to 65% of underlying earnings per share
1
(equivalent to previous guidance of 50% to 60% of adjusted earnings per share
1
)
Strict financial discipline on use of cash
Acquisitions evaluated against share buybacks
35 | AXA Group Investor Day | December 1, 2020
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Investor Day
December 1, 2020
6
Earnings and
Conclusion
Thomas Buberl, Group CEO
36 | AXA Group Investor Day | December 1, 2020
AXA XL turnaround in a
favorable market context
Euro 1.2 billion underlying earnings in 2021
Our strategy will sustain earnings growth
France & Europe geared
for sustained delivery
across growth, margins & expenses
Upside from growth avenues
in the rest of the Group
Asia, International, AXA IM
FY20E
rebased
2023E
+7%
+3%
UEPS CAGR
1
2020E rebased – 2023E
FY20E rebased includes actual underlying earnings per share restating for
Covid-19 claims
2
and natural catastrophes in excess of normalized
3
37 | AXA Group Investor Day | December 1, 2020
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Expand Health and Protection
including through services, across all geographies
Simplify customer experience and accelerate efficiency
particularly in Europe and France
Grow cash-flows across the Group
through continued life in-force management and Group simplification,
and disciplined capital management
Strengthen underwriting performance
notably at AXA XL
Sustain our climate leadership position
in shaping the climate transition
>5% CAGR
2020E -2023E
Health revenues
€-0.5bn
lower cost base
1
93%
Group P&C all year CoR
2
-20%
carbon footprint on
G/A assets by 2025E
3
€5-6bn p.a.
cash upstream by 2023E
Driving Progress 2023: AXA’s five strategic actions
39 | AXA Group Investor Day | December 1, 2020
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Driving Progress 2023: main financial targets
40 | AXA Group Investor Day | December 1, 2020
Underlying earnings per share
+3% to +7%
CAGR 2020E rebased – 2023E
Euro +14 billion
2021E – 2023E cumulative cash upstream
13% to 15%
2021E – 2023E
ca. 190%
Target capital level
Cash upstream
Underlying return on equity
1
Solvency II ratio
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Investor Day
December 1, 2020
Q&A
41 | AXA Group Investor Day | December 1, 2020
Driving Progress 2023: AXA’s five strategic actions
42 | AXA Group Investor Day | December 1, 2020
Expand Health and Protection
including through services, across all geographies
Simplify customer experience and accelerate efficiency
particularly in Europe and France
Grow cash-flows across the Group
through continued life in-force management and Group simplification, and disciplined capital management
Strengthen underwriting performance
notably at AXA XL
Sustain our climate leadership position
in shaping the climate transition
Back to agenda
Investor Day
December 1, 2020
Appendices
43 | AXA Group Investor Day | December 1, 2020
Appendix – Details on components of underlying earnings per share growth
+2%
Technical
margin
Growth Efficiency Investment
margin
+2%
+3%
-2%
CAGR 2020E rebased – 2023E
+
Macro-economic
conditions
-2% to +2%
+3% to +7%
Under management control
1 2 3 4
FY20E rebased includes actual underlying earnings per share restating for
Covid-19 claims
1
and natural catastrophes in excess of normalized
2
44 | AXA Group Investor Day | December 1, 2020
2020E rebased – 2023E
UEPS CAGR
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Selective growth, with continued focus on technical profitability
1
▶ Health & Protection: +4% to +6%
gross revenues 2020E – 2023E CAGR,
in line with our strategy
▶ P&C: continued focus on Commercial
lines, and on technical profitability
▶ L&S: managing flows selectively,
continued outflows in G/A Savings,
inflows in Unit-Linked
+2%
UEPS 2020E – 2023E CAGR
2023EFY19
normalized
1
68%
67%
P&C all year
loss ratio
2023E P&C all year
combined ratio
93%
+2%
UEPS 2020E – 2023E CAGR
45 | AXA Group Investor Day | December 1, 2020
Back to agenda
Gradual decline in investment income
2020E
1H20
Book yields
2023E
-2%
UEPS 2020E – 2023E CAGR
▶ P&C yield
10 to 20bps dilution per year
▶ L&S investment margin
55 to 65bps in 2021E – 2023E,
unchanged vs. previous plan
▪ Disciplined ALM
▪ Strong crediting rates management
3
47 | AXA Group Investor Day | December 1, 2020
2.7%
Interest rates
assumptions
2.8%
Property &
Casualty
Life &
Savings
1
1.75%
0.75%
-0.50%
0%
10-year US
Treasuries
10-year
German bund
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110
100
90
UEPS levers impacted by the progress of economic recovery
-2% to +2%
UEPS 2020E – 2023E CAGR
4
GDP assumptions and scenarios
Favorable Baseline Adverse
2019 2020E 2023E
GDP applied to AXA presence
1
(2019 = 100)
48 | AXA Group Investor Day | December 1, 2020
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Investor Day
December 1, 2020
Notes
49 | AXA Group Investor Day | December 1, 2020
Notes (1/5)
Page 5
1. AXA sold its remaining stake in Equitable Holdings, Inc. (“EQH”), excluding 44,162,500 shares of common stock of EQH, primarily related to the EQH shares to be delivered on redemption
of the AXA S.A. bonds mandatorily exchangeable into EQH shares, maturing in May 2021.
2. Based on FY19 pre-tax underlying earnings, excluding Equitable Holdings Inc. and AXA SA and other central holdings.
3. 14 disposals include UK Life & Savings (2016), Serbia operations (2016), AXA Bank Hungary (2016), Bluefin in UK (2016), Romania operations (2017), German Pro Bav (2018), Equitable
Holdings Inc. (2019), Ukraine operations (2019), Central and Eastern European operations (2020), Architas UK (2020), as well as the potential disposals of AXA Bank Belgium, Bharti AXA
General Insurance in India, AXA Bank Germany and Gulf operations, which have been signed but not yet been completed. The completion of these transactions is subject to customary
closing conditions, including the receipt of regulatory approvals.
4. Estimation for full year 2020 based on experience to-date.
Page 6
1. Underlying Earnings (“UE”), Underlying Earnings per share (“UEPS”) and Adjusted Return on Equity (“AROE”) are APMs. For further information, please refer to the reconciliation of these
non-GAAP financial measures to the financial statements and to their definition in the Glossary, which are provided in the Half-Year 2020 Financial Report (respectively, on pages 19-20, 26
and 60 to 67).
2. Free cash flows.
3. The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock. It includes a theoretical amount for dividends accrued for the
first nine months of 2020, based on the full year dividend of Euro 1.43 per share initially proposed by the Board for FY19. Dividends are proposed by the Board, at its discretion based on a
variety of factors described in AXA’s 2019 Universal Registration Document, 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 2020 financial year. For further information on AXA’s internal model and Solvency II dis closures, please refer to AXA Group’s
SFCR as of December 31, 2019, available on AXA’s website (www.axa.com). In compliance with the decision from AXA’s lead supervisor (the ACPR) from January 1, 2019, entities that were
part of the XL Group (“XL entities”) have been fully consolidated for Solvency II purposes (as per the consolidation-based method set forth in the Solvency II Directive) and their
contribution to the Group’s solvency capital requirement has been calculated using the Solvency II standard formula. Subject to the prior approval of the ACPR, the Group intends to
extend its Internal Model to XL entities as soon as December 31, 2020.
Page 7
1. Gross written premiums. As of FY19.
2. 10% p.a. growth refers to the period 2020E-2023E and €1bn GWP is a target by 2023.
3. Based on earnings before interest and taxes (EBIT) as of FY20E.
4. For the period 2020E-2023E.
5. As of September 2020.
50 | AXA Group Investor Day | December 1, 2020
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Notes (2/5)
Page 8
1. Based on FY19 pre-tax underlying earnings, excluding Equitable Holdings Inc. and AXA SA and other central holdings.
2. As of FY19.
3. As of October 2020 (by main lines of business in entities).
4. Target related to contain “warming potential” of AXA's investments to below 1.5°C by 2050.
Page 12
1. Source: AXA 2019 Annual Report and Oliver Wyman analysis.
Page 13
1. Combined ratio (“CoR”) is an APM. For further information, please refer to the reconciliation of these non-GAAP financial measures to the financial statements and to their definition in the
Glossary, which are provided in the Half-Year 2020 Financial Report (pages 19-20, and 60-67 respectively).
2. Share of Unit-Linked APE within total Savings APE for Europe and France.
3. Compounded Annual Growth Rate; period-to-period results may vary.
Page 14
1. Includes Health and Protection revenues as well as pension revenues across the AXA Group.
Page 15
1. As of FY19.
2. From FY15 to October 2020 for European entities (by main lines of business).
Page 16
1. From FY19, in terms of non-commission expenses.
2. For AXA in Europe.
3. Percentage applicable on the automatable part of the process.
Page 19
1. Source: Company reports. Data based on net earned premiums within P&C Commercial lines, including Reinsurance business.
2. CoR volatility defined as the standard deviation of the combined ratios between 2016 and 2019 divided by the average of the combined ratios between 2016 and 2019. The source is based
on company financial reports. AXA XL Insurance’s average combined ratio for 2016 to 2018 is based on XL Insurance ’s reported combined ratios and for 2019 is based on AXA XL Insurance
reported combined ratio.
3. Combined ratio net of reinsurance. The relative size of each bubble represents the net earned premium as at FY19 for each of the entities.
51 | AXA Group Investor Day | December 1, 2020
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Notes (3/5)
Page 20
1. Source: Marsh Global Insurance Composite Renewal Rate from 1Q14 to 2Q20, shown on a quarterly basis.
2. 2017 price increases for AXA XL refer to XL Catlin only. Asia prices exclude Australia.
3. Gross written premiums (GWP) breakdown for the Insurance business as percentage of total AXA XL FY19 GWP (Insurance and Reinsurance). Asia GWP exclude Australia.
4. AXA XL price increases based on renewals only, with price effect calculated as a percentage of renewed premiums. This definition applies to all pricing references across the AXA XL
presentation, unless mentioned differently.
5. Source: Marsh Global Insurance Composite Renewal Rate. Data for each calendar year based on the average of the quarterly data for every given year.
Page 23
1. Based on business lines presented on page 19, NA Professional lines (incl. US D&O) is part Financial lines, International Construction is part of Property and NA Construction is part of Casualty.
2. Breakdown by gross earned premiums for Insurance and Reinsurance based on 2021 plan combined ratios’ projection.
Page 24
1. AXA XL price increases as of 9M20, based on renewals only, with price effect calculated as a percentage of renewed premiums.
Page 25
1. In million Euros. Limits in GBP for UK risks
2. Reduction in overall policies with a net retention over €25m from January 2020 to September 2020, compared to the same period in 2019.
3. Normalised natural catastrophes losses expected in a year expressed in percentage of gross earned premiums for the same year. Natural Catastrophe charges include natural catastrophe losses
regardless of event size.
4. Gross earned premiums.
Page 26
1. AXA XL FY20 underlying earnings excluding Covid-19 claims and US riots, assuming normalized Nat Cat charges of 4% of gross earned premiums are expected to be ca. €1.0bn based on current
Management assessment. This is ca. €0.2bn lower than the €1.2bn UE target for AXA XL in 2020, disclosed in the Full-Year 2019 earnings presentation on February 20, 2020, driven by (i) lower-
than-expected underwriting income (€+0.5bn expected to be achieved in 2020 in comparison with FY19 vs. €+0.6bn targeted) and (ii) lower expected investment income (€-0.1bn vs. target).
Covid-19 claims in 2020 include P&C net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19. Covid-19 claims
do not include any financial market impacts (including impacts on investment margin, etc.) relating to the Covid-19 crisis. Claims associated to US riots in 1H20 were estimated at ca. €0.1bn
(after tax and net of reinsurance), as disclosed in the Half-Year 2020 earnings presentation on August 6, 2020.
2. Based on Management assessment of AXA XL’s expected combined ratio for 2020 excluding claims related to Covid-19 and US civil unrest, assuming normalized Nat Cat charges of 4% of gross
earned premiums (net of reinsurance and before tax) . Covid-19 claims include P&C net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net
of expenses, linked to Covid-19. Covid-19 claims do not include any financial market impacts (including impacts on investment margin, etc.) relating to the Covid-19 crisis. US civil unrest refers
to 1H20 events and associated losses were estimated at ca. €0.1bn (after tax and net of reissuance) in the Half-Year 2020 earnings presentation on August 6, 2020
52 | AXA Group Investor Day | December 1, 2020
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Notes (4/5)
Page 29
1. Aggregated 20% reduction across G/A assets related to Corporate Fixed Income, listed equities and Real Estate assets. This new “intermediate” target contributes to our commitment of
containing "warming potential" of AXA's investment to below 1.5°C by 2050 and our 2023 Euro 24bn Green Investments target, both launched in 2019.
Page 32
1. Debt Gearing is an APM. The calculation methodology of the Debt Gearing is set out on page 22 of the Half-Year 2020 Financial Report. Our target range for Debt Gearing is between 25% to 28%.
2. Illustrative. Dividends are proposed by the Board in its discretion based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval. This
illustration should not be considered in any way to be an indication of the actual dividend amount, if any, for future financial years.
Page 33
1. Average G/A reserves for AXA in France and in Europe. 2015 restated for the reclassification of AXA Life Europe in transversal. Overall reduction in average G/A reserves for the Group between
2015 and 2019, including the impact of the disposal of Equitable Holdings Inc., is -13%.
2. European peers include Allianz (average aggregate policy reserves), Zurich (General account investment in Italy, France and Germany) and Generali (Other Life insurance liabilities in Europe),
reflecting as closely as possible from the external disclosures of peers to the scope of AXA’s French and European operations.
3. G/A Savings net flows for the period FY16 – FY19 in AXA in France and in Europe.
4. Decrease in G/A reserves related to the Swiss Group Life transformation, the sale of German ProBAV and the buyout of Crest products in Belgium.
Page 34
1. 14 disposals include UK Life & Savings (2016), Serbia operations (2016), AXA Bank Hungary (2016), Bluefin in UK (2016), Romania operations (2017), German Pro Bav (2018), Equitable Holdings
Inc. (2019), Ukraine operations (2019), Central and Eastern European operations (2020), Architas UK (2020), as well as the potential disposals of AXA Bank Belgium, Bharti AXA General
Insurance in India, AXA Bank Germany and Gulf operations, which have been signed but not yet been completed. The completion of these transactions are subject to customary closing
conditions, including the receipt of regulatory approvals.
Page 35
1. Net of interest charges related to undated subordinated debt. Adjusted Earnings is an APM. For further information, please refer to the reconciliation of this non-GAAP financial measures to the
financial statements and to their definition in the Glossary, which are provided in the Half-Year 2020 Financial Report (on pages 19-20 and 60-67, respectively).
Page 37
1. Compounded Annual Growth Rate; period-to-period results may vary.
2. “Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19.
“Covid-19 claims” does not include any financial market impacts (including impacts on investment margin, unit-linked and asset management fees, etc.) relating to the Covid-19 crisis.
3. AXA Group normalized level of Natural Catastrophe charges expected in 2020 is ca. 3% of gross earned premiums. Natural Catastrophe charges include natural catastrophe losses regardless
of event size.
53 | AXA Group Investor Day | December 1, 2020
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Notes (5/5)
Page 39
1. 2023E non-commission expenses vs 2019.
2. By 2023E.
3. Aggregated 20% reduction across G/A assets related to Corporate Fixed Income, listed equities and Real Estate assets. This new “intermediate” target contributes to our commitment of
containing "warming potential" of AXA's investment to below 1.5°C by 2050 and our 2023 Euro 24bn Green Investments target, both launched in 2019.
Page 40
1. Underlying Return on Equity is a new APM. Underlying Return on Equity = ((Underlying Earnings - Undated subordinated debt interest charges) / (Opening Shareholders’ Equity + Closing
Shareholders’ Equity)/2). Opening Shareholders’ Equity and Closing Shareholders’ Equity, both being computed as net of undated subordinated debt and excluding Unrealised Capital Gains.
For additional information on the Underlying Return on Equity, including its reconciliation to the consolidated financial statements, please refer to the AXA 2020 Investor Day Press Release
dated December 1, 2020.
Page 44
1. “Covid-19 claims” includes P&C, L&S and Health net claims related to Covid-19, as well as the impacts from solidarity measures and from lower volumes net of expenses, linked to Covid-19.
“Covid-19 claims” does not include any financial market impacts (including impacts on investment margin, unit-linked and asset management fees, etc.) relating to the Covid-19 crisis.
2. AXA Group normalized level of Natural Catastrophe charges expected for 2020 at ca. 3% of gross earned premiums. Natural Catastrophe charges include natural catastrophe losses regardless
of event size.
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1. FY19 normalized for Natural Catastrophes in excess of normalized level (4% of gross earned premiums reported in FY19 vs. ca. 3% normalized level).
Page 46
1. Non-commission expenses are defined as total expenses (acquisition and administrative expenses) excluding commissions, amortization & capitalization of intangibles (DAC/DOC) and
policyholder bonus on expenses.
2. FY19 and 2023E non-commission expenses amounts shown on a similar scope i.e. it excludes amounts related to disposals completed or awaiting completion (AXA Bank Belgium, Central and
Eastern European operations, AXA Bank Germany, and Architas UK).
3. Expense ratio defined as non-commission expenses divided by gross revenues.
Page 47
1. Including Life-like Health operations.
Page 48
1. GDP applied to AXA footprint based on underlying earnings, source: AXA IM.
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54 | AXA Group Investor Day | December 1, 2020
