AXA/2025/FY/Earnings presentation: Difference between revisions

=== Full Year 2025 earnings presentation ===

 

 

=== Important legal information and cautionary statements concerning forward-looking statements and the use of non-GAAP financial measures ===

 

* These statements are based on Management's current views and intentions and are subject to change ^{p. 2}.

 

=== Table of contents ===

 

 

== FY25 Highlights ==

=== 1 FY25 Highlights ===

 

 

=== Full Year 2025 | Excellent performance ===

 

* Confident to deliver '''underlying EPS growth''' at the upper end of 6%-8% target range for 2026 ^{p. 5}.

 

=== Executing the plan on growth, margin and efficiency ===

 

 

=== Diversified franchise, well positioned in an attractive industry ===

 

 

=== Laying the foundation for the next plan ===

 

* Confidence in sustaining earnings growth ^{p. 8}

 

* Guillaume Borie ^{p. 9}

* Global Head of Finance, Strategy, Underwriting, Risk, and Technology ^{p. 9}

 

== Strong delivery across our businesses ==

=== Strong delivery across our businesses ===

 

 

=== P&C | Strong margins, confidence in sustaining growth ===

* '''Underlying earnings''' +9% to EUR 5.9bn (change FY25 vs. FY24 at constant FX) ^{p. 11}

* (donut) '''GWP''' EUR 58bn ^{p. 11}

 

=== L&H | Good momentum, well positioned to capture growth opportunities ===

* '''Underlying earnings''' +7% to EUR 3.5bn (change FY25 vs. FY24 at constant FX) ^{p. 12}

* (donut) '''GWP''' EUR 57bn ^{p. 12}

 

 

=== P&C | Continued disciplined growth ===

 

* (stacked bar) '''GWP & Other Revenues''' ^{p. 14}

*** Commercial lines: EUR 35.8bn ^{p. 14}

*** AXA XL Reinsurance: EUR 2.6bn ^{p. 14}

*** Retail lines: EUR 18.1bn ^{p. 14}

*** Commercial lines: EUR 35.8bn ^{p. 14}

*** AXA XL Reinsurance: EUR 2.6bn ^{p. 14}

*** Retail lines: EUR 19.7bn ^{p. 14}

 

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=== P&C | Earnings growth from higher underwriting and financial result ===

 

** '''Volume growth''': +EUR 292m ^{p. 16}

** '''Margin improvement''': +EUR 189m ^{p. 16}

** '''Tax''': -EUR 169m ^{p. 16}

** '''Affiliates, FX & other''': -EUR 150m ^{p. 16}

* '''Better underwriting result''' from strong volume growth and improved all-year combined ratio while enhancing reserve prudence ^{p. 16}

* '''Increase in investment income''' reflecting higher volumes and better reinvestment yields on fixed income assets ^{p. 16}

=== Life & Health | Strong growth in premiums, positive net flows ===

 

** '''Protection''': +EUR 4.9bn ^{p. 17}

** '''Health''': +EUR 2.7bn ^{p. 17}

** '''Capital light G/A''': +EUR 1.2bn ^{p. 17}

** '''Traditional G/A''': -EUR 5.0bn ^{p. 17}

 

=== Life & Health | Strong volume growth in Savings and Protection impacted by higher interest rates on discounting ===

 

 

=== Life & Health | Growth in new business driving Normalized CSM growth ===

 

** '''New business CSM''': +EUR 2.2bn ^{p. 19}

** '''Underlying return on in-force''': +EUR 1.3bn ^{p. 19}

** '''Operating variance''': -EUR 0.3bn ^{p. 19}

** '''Affiliates, FX & other''': -EUR 1.4bn ^{p. 19}

* '''Economic variance''' reflecting government spreads tightening and positive equity market returns ^{p. 19}

* '''Operating variance''' driven by better margins and net flows that were more than offset by a reduction in the duration of Group Life business in Switzerland ^{p. 19}

* '''FX impact''' mainly from JPY and HKD depreciation ^{p. 19}

 

=== Life & Health | Strong momentum in both short-term and long-term business ===

 

** '''Short-term technical margin''': +EUR 60m ^{p. 20}

** '''Long-term result incl. CSM release''': +EUR 156m ^{p. 20}

** '''Financial result''': -EUR 11m ^{p. 20}

** '''Tax, FX and others''': -EUR 27m ^{p. 20}

* '''Strong short-term technical margin''' reflecting underwriting and claims initiatives that more than offset the impact of legislative change on the recoverability of value added tax in Mexico (EUR -0.1bn) ^{p. 20}

* '''Higher long-term results''' from increase in CSM release (+8%) reflecting growth in reserve base, including from favorable equity market performance, and better margins ^{p. 20}

 

== Growth in net income reflecting higher earnings & the gain from the sale of AXA IM ==

=== Growth in net income reflecting higher earnings & the gain from the sale of AXA IM ===

 

*** Including -1% from temporary earnings dilution from AXA IM sale due to timing of anti-dilutive share buyback ^{p. 21}

 

 

== Higher organic cash remittance and robust cash position at Holding ==

=== Higher organic cash remittance and robust cash position at Holding ===

 

 

== Solvency II at 224% ==

=== Solvency II at 224% ===

 

* (bar) '''Key sensitivities''' on Ratio as of December 31, 2025 (224%) ^{p. 24}

 

=== Solvency II -impact of the end of grandfathering period and Solvency II revision ===

** No change expected in organic capital generation ^{p. 25}

** Additional capital flexibility ^{p. 25}

 

== Thomas Buberl, Group CEO conclusion ==

=== Conclusion ===

 

* All businesses in excellent shape, delivering strong growth and profitability ^{p. 27}

* Laying foundations for the next plan and confident in delivering sustainable earnings growth ^{p. 27}

 

=== February 26, 2026 Q&A Full Year 2025 earnings ===

 

 

=== AXA Investor Relations | Keep in touch ===

 

== Appendices ==

 

* Appendices ^{p. 30}

 

 

=== Gross financial debt and maturity breakdown as of December 31st, 2025 ===

** '''FY25''': Total EUR 22.3bn; Tier 1 EUR 3.5bn, Tier 2 EUR 12.2bn, Senior debt EUR 4.6bn ^{p. 32}

** '''Jan 1st 2026''' (End of the grandfathering period): Total EUR 20.3bn; Tier 1 EUR 5.8bn (o/w EUR 0.4bn redeemed in Jan 2026), Tier 2 EUR 11.3bn, Senior debt EUR 3.2bn ^{p. 32}

* (stacked bar) '''Contractual maturity breakdown''' (EUR bn):

* (stacked bar) '''Economic maturity breakdown''' (EUR bn):

 

=== General Account invested assets ===

** '''Cash''': 4% ^{p. 33}

** '''Policy loans''': 0% ^{p. 33}

* '''Duration gap''': -0.4 year ^{p. 33}

* ¹ '''Other fixed income''' includes Asset Backed Securities (EUR 25bn), Residential Loans (EUR 16bn), Commercial & Agricultural Loans (EUR 7bn) and Agency Pools (EUR 8bn) ^{p. 33}

* ³ '''Private equity and hedge funds''' includes Private Equity (EUR 17bn), Hedge Funds (EUR 5bn) and Non-listed Equities (EUR 1bn) ^{p. 33}

 

=== Structured and Private Credit assets ===

 

 

=== Investment portfolio | Fixed Income reinvestment ===

 

* (donut) '''FY25 Fixed Income Reinvestment''': EUR 57bn ^{p. 35}

** '''Investment grade credit''': 40% (Average rating: A) ^{p. 35}

** '''ABS/CLO/IG fund financing''': 21% ^{p. 35}

** '''Below investment grade credit''': 7% ^{p. 35}

* (bar) '''FY25 Fixed Income Reinvestment Yield''':

** '''Total fixed income''': 3.9% ^{p. 35}

** Average duration of 9 years ^{p. 35}

** Gradual shift from alternative total return assets to Private & Structured credit ^{p. 35}

 

 

=== AXA XL Insurance | Large Commercial & Specialty business ===

*** UK & Lloyds: 19% ^{p. 37}

* Leading market positions across lines ^{p. 37}

* Managing the cycle to deliver consistent profitability ^{p. 37}

 

=== P&C | Focus on Reserves ===

 

 

=== P&C | 2026 Simplified Group Nat Cat Reinsurance Program 1 ===

 

* Stable retention levels maintained in 2026 as in 2025 ^{p. 39}

** '''EU Windstorm''': Capacity EUR 4.0bn, Retention EUR 600m ^{p. 39}

** '''Europe Flood''': Capacity EUR 2.1bn, Retention EUR 450m ^{p. 39}

** '''NA Earthquake''': Capacity EUR 1.2bn, Retention EUR 600m ^{p. 39}

** '''Per other perils''': Capacity [unclear, visually around EUR 0.8bn], Retention EUR 400m ^{p. 39}

* Varying retention between MX and NA (EUR 400m MX, EUR 600m NA) ^{p. 39}

 

=== P&C | AXA Group earnings deviation with different levels of Nat Cat cost 1 in 2026 ===

 

*** 1/20y (95th percentile): -EUR 1.2bn ^{p. 40}

*** 1/10y (90th percentile): -EUR 0.8bn ^{p. 40}

*** 1/5y (80th percentile): -EUR 0.4bn ^{p. 40}

*** 1/5y (20th percentile): EUR 0.5bn ^{p. 40}

*** 1/10y (10th percentile): EUR 0.7bn ^{p. 40}

*** 1/20y (5th percentile): EUR 0.8bn ^{p. 40}

* Deviation is compared to a normalized level, which are costs associated with natural catastrophes expected in an average year (ca. 4.5 points of estimated FY25 GEP, undiscounted and net of reinsurance) ^{p. 40}

 

 

=== P&C | Margin analysis ===

 

*** '''Current Accident Year Net Claims reserves''': EUR 19.0bn ^{p. 42}

*** '''Duration''': 4.0 years ^{p. 42}

*** '''Current Accident Year Discount Rate''': 2.8% ^{p. 42}

** '''Sensitivity to Current Accident Year discount rate changes''' ^{p. 42}

*** +25bps: +EUR 0.2bn ^{p. 42}

*** -25bps: -EUR 0.2bn ^{p. 42}

*** '''FY25 Average Assets''': EUR 115bn ^{p. 42}

*** '''Asset book yield''': 3.5% ^{p. 42}

*** '''FY24 Reserves at locked-in rate''': EUR 71bn ^{p. 42}

*** '''Liability book yield''': 1.9% ^{p. 42}

** '''Sensitivity of 2025e Insurance Finance Expenses to changes in 2025 current AY Discount''' ^{p. 42}

*** +25bps: ~EUR -50m ^{p. 42}

*** -25bps: ~EUR +50m ^{p. 42}

 

=== L&H | Margin analysis ===

 

* Includes scope impact ^{p. 43}

*** '''Baseline''': 33.3 ^{p. 43}

*** '''FY25 Average Assets''': EUR 98bn ^{p. 43}

*** '''Asset book yield''': 2.5% ^{p. 43}

*** '''FY24 Reserves at locked-in rate''': EUR 62bn ^{p. 43}

*** '''Liability book yield''': 2.5% ^{p. 43}

 

=== Expanding AXA's role in society: AXA for Progress Index 1 ===

** '''Target''': EUR 6bn³ in P&C GWP to support transition underwriting (cumulative 2024-2026) ^{p. 45}

** '''2025 Result''': EUR 4.6bn ^{p. 45}

** '''2025 Result''': 19,698 Cumulative 2024-2025 ^{p. 45}

** '''Target''': >20m⁵ inclusive insurance customers by 2026 ^{p. 45}

** '''Target''': 50% Percentage of AXA Group employees engaged in volunteering activities by 2026 ^{p. 45}

** '''2025 Result''': 56% ^{p. 45}

 

=== Sustainability Performance & Ratings ===

 

** '''2025 percentile''': 97th in Dow Jones Best-in-Class Europe & World indices ^{p. 46}

** '''2025 score''': AAA ^{p. 46}

** '''2025 score''': B ^{p. 46}

** '''2025 ESG Risk Rating''': 17.0 - Low risk ^{p. 46}

** '''2025 score''': 4.3/5 in FTSE4Good Index Series ^{p. 46}

* The CSA ranking is a key performance indicator for AXA Group, used to calculate the grant of Long-Term Incentives (more precisely AXA Restricted Shares) ^{p. 46}.

* '''AXA XL''': includes insurance and reinsurance activities and holding ^{p. 47}.

* '''Asia, Africa & EME-LATAM''': ^{p. 47}

** AXA Mediterranean Holdings ^{p. 47}.

* '''Transversal & Other''': includes AXA Assistance, AXA Liabilities Managers, AXA and other Central Holdings ^{p. 47}.

* '''AXA Investment Managers (until July 1, 2025)''': includes AXA Investment Managers, Select (previously referred to as Architas) and Capza which are fully consolidated and Asian joint ventures which are consolidated under the equity method ^{p. 47}.

 

=== Glossary ===

* '''Financial result''': consists of investment income on assets backing BBA and PAA contracts as well as assets backing shareholder's equity, net of the insurance finance expenses (IFE) defined as the unwind of the present value of future cash flow ^{p. 48}.

* '''Gross Written Premiums and Other Revenues (GWP & Other Revenues)''': represent the insurance premiums collected during the period (including risk premiums, premiums from pure investment contracts with no discretionary participating features, fees and revenues, net of commissions paid on assumed reinsurance business) ^{p. 48}.

* '''New Business Contractual Service Margin (NB CSM)''': a component of the carrying amount of the asset or liability for newly issued insurance contracts during the period, representing the unearned profit to be recognized as insurance contract services are provided ^{p. 48}.

* '''New Business Value margin (NBV margin)''': ratio of (i) NBV, representing the value of newly issued contracts during the current year, to (ii) PVEP ^{p. 48}.

* '''Technical experience''': consists the impacts on the underlying earnings if (i) the difference between the expected and incurred cash-flows of the defined period, (ii) the risk adjustment release, (iii) the changes in onerous contracts, and (iv) the other long-term elements which are mainly composed of non-attributable expenses ^{p. 48}.

* '''Underlying return on in-force''': represents the release of Time Value of Options & Guarantees (TVOG) plus the unwind of CSM at the reference rate plus the underlying financial over-performance ^{p. 48}.

== Abbreviations ==

 

* '''ABS''': Asset-Backed Securities

* '''AEP''': Aggregate Exceedance Probability

* '''AI''': Artificial Intelligence

* '''APAC''': Asia-Pacific

* '''AY''': Accident Year

* '''CSA''': Corporate Sustainability Assessment

* '''CSM''': Contractual Service Margin

* '''DPS''': Dividend Per Share

* '''EOF''': Eligible Own Funds

* '''EPS''': Earnings Per Share

* '''FX''': Foreign Exchange

* '''GAAP''': Generally Accepted Accounting Principles

* '''GWP''': Gross Written Premiums

* '''HKD''': Hong Kong Dollar

* '''IFRS''': International Financial Reporting Standards

* '''IG''': Investment Grade

* '''LTV''': Loan-to-Value

* '''MSCI''': Morgan Stanley Capital International

* '''NBV''': New Business Value

* '''NHG''': Nationale Hypotheek Garantie

* '''OCI''': Other Comprehensive Income

* '''PAA''': Premium Allocation Approach

* '''PVEP''': Present Value of Expected Profits

* '''PYD''': Prior Years' Reserve Development

* '''ROE''': Return On Equity

* '''SCR''': Solvency Capital Requirement