Full Year 2020 Appendices - FY20 Earnings Appendices
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Full Year 2020
Appendices
February 25, 2021IMPORTANT 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, theGroup’s consolidated financialstatements 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 25 and 26 of AXA’s 2020 Activity Report. APM underlying earnings per share is reconciled to the financial statements in the table set forth on page 34 of AXA’s 2020 Activity Report. The calculation methodologyof the debt gearing is set out on page 28 of AXA’s 2020 Activity Report. The above mentioned and other non-GAAP financial measures used in this press releaseare defined in the Glossary set forth on pages 68 to 76 of AXA’s 2020 Activity Report.
Table of contents
1. Gross financial debt B.04
2. Solvency II B.05
3. Investment portfolio B.08
4. Additional P&C disclosure B.20
5. Margin analysis B.31
6. Corporate Responsibility B.35
B3 Full Year 2020 Earnings l Appendices l February 25, 2021Gross financial debt – Long-term maturities
In Euro billion
Contractual maturity breakdown
Gross financial debt
0.3
0.7
Debt
28.8% 26.8%
gearing
19.1 7.1 6.6
16.6 1.0
0.1 0.4 0.5
6.7 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031- ≥2040 Undated
6.6 2039
11.3 Economic maturity breakdown
9.2
0.7
1.0 0.9
FY19 FY20
2.8 2.6
0.4 0.8
Tier 1 2.0
1.0 1.0 1.0 1.2 0.5 1.0 0.3
Tier 2 0.2 0.6 0.4
0.1
Senior debt 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031- ≥2040 Undated
2039
B4 Full Year 2020 Earnings l Appendices l February 25, 2021 Senior debt Tier 2 Tier 1Table of contents
1. Gross financial debt
2. Solvency II
3. Investment portfolio
4. Additional P&C disclosure
5. Margin analysis
6. Corporate Responsibility
B5 Full Year 2020 Earnings l Appendices l February 25, 2021Solvency II ratio
Solvency II ratio1 Key sensitivities
In Euro billion
198% 200% Ratio as of December 31, 2020 200%
Interest rate +50bps +10 pts
59.4 55.0 Interest rate -50bps -15 pts
30.0 Corporate spreads +50bps 0 pt
27.5
Available capital Euro Sovereign spreads +50bps2 -13 pts
Required capital Credit migration2 -7 pts
FY19 FY20 Equity markets +25% +6 pts
Equity markets -25% -8 pts
Solvency II ratio roll-forward
+15pts
198% +7pts 200%
+13pts
-11pts
-22pts
FY19 Operating Dividend Market impact AXA XL Debt, forex FY20
return excl. Forex integration and other
1. The Solvency II ra tio is estimat ed pr imar ily using AXA ’s inter nal m odel calibrate d b ased on an a dverse 1 /200 y ears shock .F or f urt her inf ormat io n o n AXA ’s inte rnal m odel a nd Solvency II disclosures, please r efer t o AXA Gro up ’s Solvency an d F ina ncial Co nd ition Re por t (SF CR) as of
December 31 ,2 019, ava ilable o n A XA ’s we bsite (ww w .axa.co m). Pu rsuant to the au tho rizat io n fro m A XA ’s lead su perv isor (t he ACPR) ,t he co ntr ib ution of e nt ities that we re p art of t he XL Gro up (“XL ent it ies”),an d are n ow par t of the AX A XL d ivision ,t o t he Gr ou p S olvency II rat io is ,
as from December 31, 2020, calculated with the AXA Group internal model. In compliance with the prior decision from ACPR, the XL entities contributed to the Group’s solvency capital requirement as of December 31, 2019 using the Solvency II standard formula.
2. Sensit ivity t o E uro sover eig n spr eads assumes a 50 bps sprea d widen ing of the E uro sovere ign b on ds vs. the Eu ro swap curve (ap plied o n sove reig n and q uasi-sover eig n ex posures). Se nsit ivity t o cre dit rat in g m igrat io n assumes 20% of c orp orate b on ds
(including private debt) held are downgraded by one full letter (3 notches).
B6 Full Year 2020 Earnings l Appendices l February 25, 2021Solvency II required capital
Split by Risk, Geography & Business
Required capital by risk Required capital by business Required capital by geography
FY20 FY20 FY20
Belgium UK
Operational Asset Management & Banking Transversal &
Asset Management,
Counterparty 5% Banking & other 3% Central Holdings
6% Holdings 4%
8% & Others 4%
21%
18% Italy & Spain 6%
Market
37% 38% Switzerland
6%
28% Germany 8%
20%
Life & Savings 13%
Property France
Property 39% Asia
& Casualty 22% 15%
& Casualty
Life & Savings AXA XL
B7 Full Year 2020 Earnings l Appendices l February 25, 2021Table of contents
1. Gross financial debt
2. Solvency II
3. Investment portfolio
4. Additional P&C disclosure
5. Margin analysis
6. Corporate Responsibility
B8 Full Year 2020 Earnings l Appendices l February 25, 2021General Account Invested Assets
Invested assets (100%)
FY20 Total General Account FY20 %
In Euro billion
invested assets Fixed income 460 80%
Duration gap at ca. 0.5 year
o/w Govies and related 248 43%
o/w Corporate bonds 163 28%
1
o/w Other fixed income 49 9%
Real Estate 36 6%
Euro
Listed equities 21 4%
572
2
billion Private Equity and Hedge Funds 24 4%
Cash 29 5%
Policy loans 2 0%
3
Total Insurance Invested Assets 572 100%
Fixed Income PE and HF 1. Other fixed income includes Asset Backed Securities (Euro 18 billion), residential loans (Euro 18 billion),
commercial & agricultural loans (Euro 8 billion) and Agency Pools (Euro 5 billion)
Real Estate Cash 2. Includes also non-listed Equities
3. FY20 invested assets referenced in page 31 of the financial supplement are Euro 663 billion, which include
Listed Equities Policy loans notably Euro 78 billion of Unit-linked assets and assets related to the Banking segment.
B9 Full Year 2020 Earnings l Appendices l February 25, 2021Government bonds and related 43%
Gross1 unrealized capital
Breakdown by rating Breakdown by geographical exposure
gains and losses
In Euro billion
France 24%
Japan 14% 51.4
AAA (22%) Italy 8% 45.2
AA (45%) Germany 8%
A (20%) Euro Belgium 8%
United States 7%
BBB (10%) 248 Supranational 6%
Non rated (2%) billion
Switzerland 6%
Below Investment Spain 5%
Grade (1%)
Austria 2%
Netherlands 2%
Other 9% FY19 FY20
Average rating maintained in the AA range
As of December 31, 2020
B10 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Gross of tax and policyholders’ participationCorporate bonds 28%
Gross2 unrealized capital
Breakdown by rating1 Breakdown by industry
gains and losses
In Euro billion
Banks 38%
Consumer, Non-cyclical 13% 12.3
AAA (16%) Industrial 8%
AA (10%) Utilities 8% 9.2
A (30%) Euro Communications 7%
163 Financial 6%
BBB (37%)
billion Energy 5%
Below Investment
Consumer, Cyclical 4%
Grade (7%)
Basic Materials 3%
Technology 2%
Others 4%
FY19 FY20
Average rating maintained in the A range
As of December 31, 2020
1. Corporate bonds not rated by external rating agencies are reallocated under AXA’s internal ratings: AA: Euro 1.5 billion, A:
B11 Full Year 2020 Earnings l Appendices l February 25, 2021 Euro 2.7 billion, BBB: Euro 2.0 billion, Below investment grade: Euro 4.5 billion
2. Gross of tax and policyholders’ participationOther Fixed Income 9%
Asset Backed Securities Mortgage loans
Breakdown by asset type1 and ratings FY20 market value by entity
CLO (95%)
US subprime, Alt A AAA 62% Switzerland (40%)
& NC RMBS (1%) AA 22% Very secured portfolio:
Euro A 11% Germany (29%)
Prime RMBS (1%) BBB 0% Market value3 FY20 default rate 0.50%
18 BIG 1%
France (16%)
Euro 26 billion
FY20 loan to value 61%
CDO (1%) billion Other (8%)
Non rated/Equity 4%
Commercial MBS (1%) Belgium (7%)
Consumer ABS2 (0%)
Other ABS (1%)
Residential Commercial
Switzerland 70% 30%
Germany 88% 12%
France 45% 55%
Belgium 64% 36%
As of December 31, 2020 1. Including debt and equity tranches of ABS
2. Mainly consumer loan ABS (plus some leases and operating ABS assets)
B12 Full Year 2020 Earnings l Appendices l February 25, 2021 3. Excluding banking operations and excluding Euro 5.2 billion of Agency pools (Mortgage-backed securities issued
by US Government Sponsored Enterprises)Real estate investments 6%
Breakdown by Geography Breakdown by type and geography
France (29%) France Switzerland Germany Belgium Other Total
Switzerland (16%) Office 9% 7% 5% 5% 11% 37%
Germany (12%) Residential 4% 7% 1% 0% 7% 19%
Retail 10% 0% 2% 2% 2% 15%
Belgium (8%) Market value1 Others 6% 1% 5% 0% 15% 29%
Other EU Euro 36 billion Total 29% 16% 12% 8% 35% 100%
countries (17%)
United Kingdom (6%)
United States (5%)
Portfolio Yield from Rental Income ~ 3.5%
Japan (5%)
Australia (2%)
As of December 31, 2020
1. Representing Euro 4.8 billion of unrealized gains off balance sheet, net of tax and PB. The assets in scope exclude those
B13 Full Year 2020 Earnings l Appendices l February 25, 2021 held directly by the French Mutual funds and the non-Main Fund unit linked holdings, as well as CRE loans.Listed equity portfolio
4%
Breakdown by asset domiciliation Breakdown by industry Gross1 unrealized capital
gains and losses
In Euro billion
Consumer, Non-cyclical 24%
US (29%) Financial 14%
5.6 5.4
France (20%) Industrial 13%
Consumer, Cyclical 11%
Japan (7%)
Technology 10%
Switzerland (6%) Euro
Communications 8%
Germany (4%) 21 Basic Materials 5%
Netherlands (4%) billion Banks 5%
Belgium (3%) Others 3%
Other European Funds 2%
Countries (10%)
Diversified 2%
Rest Of The World (18%) FY19 FY20
Utilities 2%
Energy 2%
As of December 31, 2020
B14 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Gross of tax and policyholders’ participation4%
Private Equity and Hedge Funds
Private Equity Hedge Funds
Breakdown by
Portfolio breakdown
asset domiciliation Alternative credit
Short dated carry 72%
Deep value credit 15%
Relative value credit 8%
Expertise
Real asset cash flow 5%
Buy-out 55%
Infrastructure 30% Multi-Strategy
Euro Mezzanine 10% Euro Relative Value & Multi-Strategy 24%
13 Venture 4% 5 Fixed Income Arbitrage
EQMN - Systematic
22%
18%
billion billion
Equity Long/short 10%
Diverfied Portfolio
Global macro 7%
Funds of Funds 55% Distressed & Credit 7%
Direct 45% Emerging markets 5%
Merger Arbitrage 5%
Europe (64%) Japan (3%) Alternative credit program (72%) Other 2%
US (26%) Other (8%) Multi-strategy program (28%)
As of December 31, 2020
B15 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Gross of tax and policyholders’ participationFocus on net unrealized capital gains
In Euro billion
FY20 Net unrealized capital gains on
Balance sheet net unrealized capital gains1 government bonds and related by geographies
22.6
5.0
19.3 3.4
3.1 4.1
2.7
2.9
2.1 2.0
13.4 15.1 1.3
1.0 1.0
FY19 FY20 France Germany Belgium Switzerland Japan Eurozone Other
peripherals
Equities & other2
Corporate bonds
Government bonds
and related
B16 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Group share excluding forex impacts, net of tax and policyholders’ participation
2. Including ABS, alternative investments, other assets, minorities and equity methodsInvestment portfolio | Fixed Income reinvestment
FY20 Fixed Income reinvestment FY20 Fixed Income reinvestment yield
2.6%
1.1% 1.3%
Euro
50
billion3 Core Alternative Group
Fixed Income Fixed Income Fixed Income
▶ Euro 50 billion fixed income invested at 1.3%
Government bonds & related (46%) - Average rating: AA ▪ Maintaining quality: A+ average rating
Investment grade (41%) - Average rating: A ▪ Average duration of 14 years
▪ Includes Euro 9 billion of Alternatives invested at 2.6%
ABS (7%)
(mainly Real Estate debt, CLOs and Private HY)
BIG credit (6%)
▶ Further Euro 2 billion in non Fixed Income1
▪ Mainly Real Estate, Infrastructure and PE
B17 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Excluding listed equitiesInvestment portfolio | P&C and L&S Yield
P&C yield1 L&S yield2 L&S investment margin2
-28 bps -9 bps Stable3
2.9% 2.8% 2.7% 68 bps 67 bps
2.6%
FY19 FY20 FY19 FY20 FY19 FY20
1. P&C gross asset yield excluding Health
B18 Full Year 2020 Earnings l Appendices l February 25, 2021 2. L&S Group yield and investment margin on total General Account business, excluding Health
3. Change at constant FXInvestment portfolio | Life & Savings - Asset & Liability management
Inforce New Business
FY20 Yield FY20 L&S FY20 Reinvestment FY20 L&S
Spread above Spread above
on total L&S average yield on L&S average
guarantee guarantee
asset base guaranteed rate fixed income assets guaranteed rate
Group 2.7% 1.5% +120bps Group 1.2% 0.2% +100bps
o/w France 3.2% 0.5% +270bps o/w France 1.0% 0.0% +100bps
o/w Germany 3.0% 2.6% +40bps o/w Germany 1.5% 0.7% +80bps
o/w Switzerland 1.5% 1.2% +30bps o/w Switzerland 1.1% 0.4% +70bps
o/w Belgium 3.7% 2.2% +150bps o/w Belgium 1.3% 0.8% +50bps
o/w MPS Italy 2.1% 0.8% +130bps o/w MPS Italy 1.0% 0.2% +70bps
B19 Full Year 2020 Earnings l Appendices l February 25, 2021 Life & Savings General Account business, including Health previously reported in the L&S segment.Table of contents
1. Gross financial debt
2. Solvency II
3. Investment portfolio
4. Additional P&C disclosure
5. Margin analysis
6. Corporate Responsibility
B20 Full Year 2020 Earnings l Appendices l February 25, 2021Property & Casualty | Gross revenues and market pricing trends by geography
Commercial Lines Personal Lines
Gross revenues
In Euro million Price Price
FY20
effect
FY20
effect
2021 Market pricing trends
France 3,110 +2.9% 3,876 -1.9% Price stability expected in Commercial Lines in the context of Covid-19. Price softening in Personal Lines.
Switzerland 1,565 +0.6% 1,725 -1.3% Price softening in Personal Motor, Commercial Property and Commercial Liability, while prices in other lines are mostly expected to increase.
Germany 1,734 +2.6% 2,598 +1.4% Price hardening observed in Mid-Market especially in Commercial Property. Continuing price competition in Personal Motor.
Belgium 958 +1.4% 1,129 +2.2% Prices in Commercial Lines expected to remain competitive. Limited price increases expected in Personal Lines.
UK & Ireland 1,534 +6.8% 1,923 +4.9% Price stability expected in Commercial Lines in the context of Covid-19, while price expected to soften in Personal lines Motor in both UK & Ireland.
Spain 410 +3.4% 1,272 +2.0% Price expected to be stable in the market in all lines of business. Personal Motor competition remains intense with expected price softening
Italy 531 0.0% 1,215 -0.4% Price softening expected in 2021 on both personal and commercial lines notably from motor
Asia & International 2,348 +1.2% 3,218 -0.3% Retail Motor prices hardening in South Korea and under pressure in China following tariff deregulation in 4Q20
1
AXA XL insurance 13,681 +17.2% - - Price momentum has remained very strong in 2020 in Insurance, notably in NA Excess Casualty and Professional lines, as well as in Reinsurance
1 from Property Cat. Pricing environment expected to remain favourable in 2021.
AXA XL reinsurance 4,665 +7.1% - -
Prices expected Prices expected Prices expected
Total 31,697 +7.0% 16,956 +0.4% to increase to be stable to decrease
1. Renewals only, price effect calculated as a percentage of renewed premiums
B21 Full Year 2020 Earnings l Appendices l February 25, 2021 Changes are on a comparable basisProperty & Casualty | Profitability ratios by geography, including / excluding Covid-19 impacts
o/w loss ratio o/w expense ratio
P&C profitability ratios All Year Combined ratios
excl. Covid-191 excl. Covid-191
1
Excluding Covid-19
FY19 FY20 FY20 Change FY20 Change
FY20 Change
France 90.7% 90.0% 88.1% -2.6 pts 61.4% -3.7 pts 26.7% +1.1 pt
Europe 93.2% 90.9% 92.6% -0.4 pts 65.5% -0.3 pts 27.1% -0.1 pt
Asia & International 97.1% 96.1% 98.0% +1.1 pts 65.3% -1.9 pts 32.7% +2.9 pt
AXA XL 101.5% 112.2% 102.5% +1.2 pts 78.0% +2.7 pts 24.5% -1.5 pts
Total 96.4% 99.5% 96.4% +0.1 pt 69.1% +0.1 pt 27.3% 0.0 pt
1. “Covid-19 claims” includes 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” 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.
B22 Full Year 2020 Earnings l Appendices l February 25, 2021 Changes are at constant FXProperty & Casualty | Details on P&C current year loss ratio
Personal Motor Personal Non-Motor
74.5% +1.0pt +0.5pt 62.4%
+0.2pt 65.8% +0.8pt
60.3%
-0.3pt
-7.5pts -0.6pt -0.8pt
FY19 Covid-19 Nat Cat Price effect Freq, Sev FY20 FY19 Covid-19 Nat Cat Price effect Freq, Sev FY20
& other1 & other1
Total Commercial lines Total P&C
Incl. Construction & Work. Comp.
+3.2pts +0.3pt +0.4pt 74.5%
+7.2pts +0.5pt +0.9pt 80.3%
72.7% 71.3%
-1.0pt -0.9pt
FY19 Covid-19 Nat Cat Price effect Freq, Sev FY20 FY19 Covid-19 Nat Cat Price effect Freq, Sev FY20
& other1 & other1
B23 Full Year 2020 Earnings l Appendices l February 25, 2021 1. Other includes opening adjustments, changes in mix, claims handling costs,
Changes at constant FX
reinsurance impact excl. Nat Cat, other changes in reserves, Forex and scopeProperty & Casualty | Focus on P&C reserves
Prior year reserve development level
(in % of gross earned premiums)
6.0%
5.4% 5.4%
4.5%
2.7% 3.1%
2.0% 1.7% 2.1% 1.8% 1.8% 1.4% 1.9% 1.3% 2.1% 2.1% 1.7% 2.2% 2.3% 2.1%
1.4% 1.2% 1.2% 1.3%
0.6% 0.8% 1.2%
FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15 1H16 FY16 1H17 FY17 1H18 FY18 1H19 FY19 1H20 FY20
Reserving ratio
(Net technical reserves/Net earned premiums)
236% 227% 239% 233%
186% 194% 187% 198% 187% 199% 186% 196% 187% 195% 186% 195% 185% 199% 188% 199% 194% 202% 192% 203% 209% 213% 213%
FY06 FY07 FY08 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 1H14 FY14 1H15 FY15 1H16 FY16 1H17 FY17 1H18 FY18 1H19 FY19 1H20 FY20
International Insurance activity reclassified in the Property & Casualty segment from FY15
Health “P&C like” previously reported under the P&C segment is reported as a separate business line from FY16 for prior year reserve developments and from FY17 for reserving ratio
Includes AXA XL for reserving ratio and prior year reserve developments in 1H19 and onwards
B24 Full Year 2020 Earnings l Appendices l February 25, 2021Property & Casualty | Focus on P&C reserves
Reserving ratio IFRS reserves in excess
(Net technical reserve / Net earned premiums) of undiscounted SII BEL
(in Euro billion)
227% 233% 6.8
5.6 AXA XL (€-0.6bn)
France (€-0.6bn)
FY19 FY20 FY19 FY20
B25 Full Year 2020 Earnings l Appendices l February 25, 20212021 Simplified Group Nat Cat Reinsurance Program
In Euro
All Retention
and basis risk
(with €50m deductible)
Retention lowered to
€500m for NA key perils
vs 2020 program
2.9bn Alternative 1.25bn
Capital &
Cat Bonds
1.25bn 1.25bn
Retention lowered to
650m protect lower return period
vs 2020 program
Retention 500m 500m 500m 350m
EU NA NA Per other Group
Windstorm Hurricane Earthquake perils 1 Aggregate
Insurance segment Reinsurance All
(occurrence protection) segment segments
(illustrative)
B26 Full Year 2020 Earnings l Appendices l February 25, 2021 1.Other perils include Turkey earthquake, Mexico earthquake and windstorm, EU and NA floods as well as a series of other
secondary perils. Protection bought varies by peril type.AXA Group earnings deviation with different levels of Nat Cat cost1
In Euro billion (net of reinsurance, post-tax)
€+0.6bn
€+0.5bn
€+0.4bn
1/20y 1/10y 1/5y Median
(95th) (90th) (80th) (50th)
1/5y 1/10y 1/20y
(20th) (10th) (5th)
€-0.3bn
€-0.5bn
More severe years Less severe years
€-0.7bn 2021 2020
1. Natural catastrophe cost defined as Aggregate Exceedance Probability (AEP) of all natural perils worldwide, net of
B27 Full Year 2020 Earnings l Appendices l February 25, 2021 tax and reinsurance. Deviation iscomparedto a normalized level, which are costs associatedto natural catastrophes
expected in anaverage year (ca. 3 pointsof combined ratioin 2020 and ca. 4 pointsof combined ratioin 2021).Property & Casualty | AXA XL topline overview, with detail by sub-lines
In Euro billion
+3%
Change excl.
FY20 Change o/w Pricing 1
18.6 18.3 Covid-19
P&C Insurance 13.7 +4% +17% +11%
Specialty 3.7 -2% +13% +6%
Property 3.0 +7% +20% +8%
P&C 14.1 13.7 Casualty 4.0 -6% +15% +5%
Insurance
Financial lines 3.0 +30% +23% +33%
P&C Reinsurance 4.7 0% +7% +1%
P&C Property Cat 0.8 +1% +11% -1%
4.5 4.7 Property Other 1.2 +1% +7% +2%
Reinsurance
Other 2.6 -2% +6% +2%
FY19 FY20
B28 Full Year 2020 Earnings l Appendices l February 25, 2021
Changes are on a comparable basis 1. Renewals only, price effect calculated as a percentage of renewed premiumsProperty & Casualty | Focus on AXA XL net reserves
AXA XL premiums1 Net reserves & Reserving ratio1 Claims ratio1
In USD billion (Net technical reserve/Net earned premiums) (Net claims reserve/Net claims paid)
GEP NEP Net reserves Net reserve ratio Net Claims ratio
FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20
Insurance 14.6 15.4 9.0 8.8 25.9 29.0 286% 330% 371% 416%
Short tail lines 7.1 7.7 4.4 4.3 9.2 10.6 206% 247% 240% 280%
Property 3.2 3.6 1.8 1.8 4.0 4.8 227% 270% 252% 324%
Specialty 3.9 4.0 2.7 2.5 5.1 5.8 194% 232% 206% 249%
Long tail lines 7.5 7.7 4.6 4.5 16.7 18.3 364% 410% 508% 545%
Casualty 5.1 4.8 3.1 2.9 10.8 11.4 346% 399% 499% 547%
Professional 2.4 2.9 1.5 1.6 6.0 6.9 402% 429% 578% 541%
Reinsurance 5.0 5.2 4.1 4.2 11.5 12.3 280% 292% 329% 341%
Total AXA XL 19.5 20.5 13.1 13.0 37.3 41.2 285% 317% 357% 390%
1. Based on USD
B29 Full Year 2020 Earnings l Appendices l February 25, 2021 FY19 premiums and reserves across lines of business have been adjusted compared to AXA Full Year 2019
Appendices to reflect the latest allocation of AXA XL’s lines of business, consistent with AXA XL’s topline
disclosure. Total premiums and total net reserves are unchangedProperty & Casualty | Focus on AXA XL Adverse Development Cover (ADC)
Scope
▶ 100% of XL legacy Insurance long tail lines $1.0bn ADC 10% AXA XL
provided by Enstar 2 co-participation
▶ 2019 and prior accident years
▶ IFRS net reserves of $11.0bn1 $0.4bn retained by AXA XL
$1.6bn
Structure
Loss reserves 10% AXA XL
▶ Cession of 90% of up to $1.0bn of potential adverse transfer co-participation
developments to Enstar2
$11bn1
▶ ADC attaches at $375m above IFRS net reserves IFRS net reserves
▶ Loss reserves transfer of $1.6bn (90% transferred) $9.4bn
Reserves
retained
Cost by AXA XL
▶ ADC funded by foregone investment income on
loss reserves transferred (ca. $20m p.a.)
B30 Full Year 2020 Earnings l Appendices l February 25, 2021 1. The level of reserves on which the transaction is based
2. Through a wholly owned subsidiary of Enstar Group LimitedTable of contents
1. Gross financial debt
2. Solvency II
3. Investment portfolio
4. Additional P&C disclosure
5. Margin analysis
6. Corporate Responsibility
B31 Full Year 2020 Earnings l Appendices l February 25, 2021Property & Casualty | Underlying earnings margin analysis
In Euro million
FY20 Change FY20 Change
Investment income 2,529 -7% Technical margin 13,486 -8%
Average assets1 106,015 +4% Gross earned premium 48,854 +4%
Average yield1,2 2.6% -28 bps AY Loss ratio 72.4% +3.4 pts
CY Loss ratio 74.5% +3.2 pts
o/w Covid-19 impacts 3.2% -
o/w Nat Cat 4.2% +0.2 pt
+ + PY Reserve development -2.1% +0.2 pt
- Expenses 13,241 +3%
Acquisition expenses 8,622 +5%
Acquisition expense ratio 17.6% +0.2 pt
Administrative expenses 4,619 0%
Administrative expense ratio 9.5% -0.3 pt
Pre-tax underlying earnings 2,775 -38%
- Taxes3 1,127 -1%
+ UE from associates 91 2%
- Minority interests 95 +18%
Underlying earnings 1,644 -51%
1. Average assets and average gross yield are estimated excluding Health.
2. Gross of interests credited of P&C reserves relating to annuities.
3. Effective tax rate increased to 41% in FY20 vs. 26% at FY19
B32 Full Year 2020 Earnings l Appendices l February 25, 2021 Changes at constant Forex, except for gross earned premium on comparable basisHealth | Underlying earnings margin analysis
In Euro million
FY20 Change FY20 Change FY20 Change
Investment income 147 +1% Fees & revenues 1,861 +12% 1 1,322 -7%
Technical margin
Gross earned premiums: 14,708 (+6%)
AY Loss ratio: 78.4% (+0.7pt1)
+ + +
- Expenses1,2 -2,378 +5%
Acquisition expenses1 -1,372 -11%
Acquisition expense ratio 1 9.3% -1.9 pt
Administrative expenses1 -1,008 n.a.
Administrative expense ratio 1 6.9% +1.6 pt
Pre-tax underlying earnings 952 -2%
- Taxes3 260 -1%
+ UE from associates 17 n.a.
- Minority interests 16 n.a.
4
Underlying earnings 693 -1%
1.Includes a reallocation of expenses in France between acquisition expenses, administrative expenses and claims handling coststoalign with Group guidelines.
2.Includes VBI amortization (€+2m in FY20 and €+3m in FY19)
3.Effective tax rate is stable at 27% in FY20 vs. FY19
4.Exclude the contribution of EQH in 2019
B33 Full Year 2020 Earnings l Appendices l February 25, 2021 Changes are at constant Forex and excluding EQH, except for gross earned premium which are on comparable basisLife & Savings | Underlying earnings margin analysis
In Euro million
FY20 Change FY20 Change FY20 Change
Investment margin 1,936 0% Fees & revenues 4,471 +2% Net technical margin 1,105 -19%
Average G/A reserves 288,458 +1% o/w Unit-Linked management fees 943 +2%
Mainly from the extension of disability coverage to vulnerable
Investment margin (bps) 67 bps 0 bp Average UL reserves 74,505 +3% customers and the decrease in annuities discount rate in France
UL average management fees (bps) 127 bps -1 bp
o/w Loadings and other 3,528 +2%
L&S revenues 31,524 -6%
L&S average margin on revenues 11.2% +1 pts
+ + +
- Expenses 4,728 +2%
Acquisition expenses 1 2,338 -13%
Administrative expenses 1 2,390 +24%
- VBI amortization 91 -2%
Pre-tax underlying earnings 2,693 -9%
- Taxes2 474 -20%
+ UE from associates 183 -6%3
- Minority interests 64 -8%
Underlying earnings 2,338 -7%3
1. Includes reallocation of expenses in France between acquisition and administrative expenses to align with Group guidelines.
2. Effective tax rate, excluding EQH, decreased to 18% in FY20 vs 20% in FY19.
3. Exclude the contribution of EQH in 2019
B34 Full Year 2020 Earnings l Appendices l February 25, 2021 Changes are at constant Forex and excluding EQH, except for gross revenues which are on comparable basisTable of contents
1. Gross financial debt
2. Solvency II
3. Investment portfolio
4. Additional P&C disclosure
5. Margin analysis
6. Corporate Responsibility
B35 Full Year 2020 Earnings l Appendices l February 25, 2021AXA’s climate leadership position supports climate neutrality
As a global As a global As a coalition
investor insurer builder
New Intermediate AXA TCFD and Net Zero
Target Climate Asset Owner Alliance
Innovative services to protect Sharing expertise on metrics and
-20% CO2 reduction across AXA’s
communities and corporations methodologies to align portfolios with a
General Account Assets1
facing natural disasters +1.5°C scenario
Euro 24 billion AXA Emerging Net Zero Asset
Green investment target by 2023 Customers Manager Initiative
Working to close the protection
“Transition bonds” gap by providing insurance to the
emerging middle class Net Zero Insurance
Supporting two issuances of 100M€
each in 2019 and 2020 Underwriting Alliance2
B36 Full Year 2020 Earnings l Appendices l February 25, 2021 1 Aggregated 20% reduction across General Account assets related to Corporate Fixed Income, listed equities and Real Estate assets.
2 AXA called for the launch of this body in December 2020AXA and Covid-19: responding to a health and economic crisis
Backing research Helping business Supporting the
and healthcare and society economy
Euro 12 million Euro 700 million WEF CEO
Supporting research and
healthcare
Invested in SMEs and mid-cap
enterprises1 Action Group
Leading the CEO Action Group for
Extended the European Green Deal
promoting a green recovery
#AXA Solidarity protection
Response Health and protection cover
extended for vulnerable clients2 Covid Bonds
Partnering with 101 Fund to
Investing in access to healthcare and
support 1,200 intensive care units
in 60 countries Free access employment generation
AXA’s medical teleconsultation
services1
1. In France. €500m entrusted with CAPZA to enable SMEs to strengthen their balance sheets and recover from the Covid-19 shock,
B37 Full Year 2020 Earnings l Appendices l February 25, 2021 and ca. €200m in the FFA CDC Covid-19 program
2. In FranceAXA is a recognized sustainability leader
Sector Leader
1st / 51 insurance companies in 2nd / 278 insurance companies in
Score: AAA
2020 2020
Included in Euronext Vigeo indices
2020: 2nd place Included in the
Score: 88/100 “A+” 2020 UN PRI Scorecard Bloomberg Gender Equality
Included in (focus on Responsible Investment)
Index
DJSI Europe & DJSI World indexes in 2020
DJSI accounts for 10% of
AXA’s performance shares
for top management
B38 Full Year 2020 Earnings l Appendices l February 25, 2021You can also read
