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

 

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

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

=== Strong delivery across our businesses ===

 

* Change for Gross written premiums at constant scope and FX and for underlying earnings at constant FX ^{p. 10}.

* ¹ FY25 gross written premiums excluding AXA IM, Holdings, AXA Assistance, and AXA Liabilities Managers ^{p. 10}.

=== 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}

* (diagram) '''2025 Strategic Focus''' ^{p. 12}

** '''Long-term business''': Accelerating net flows in Savings at attractive margins ^{p. 12}

** Increasing penetration of Protection riders in Savings offerings ^{p. 12}

** Leveraging AI to reduce claims leakage & improve customer outcomes in Health ^{p. 12}

* '''FY25 Financial Performance''' ^{p. 13}

* Alban de Mailly Nesle ^{p. 13}

 

=== P&C | Delivering further margin expansion while enhancing reserve prudence ===

 

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* '''Underlying Earnings''' +9% (change at constant FX) ^{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 volume growth in Savings and Protection impacted by higher interest rates on discounting ===

 

 

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

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

 

* '''Underlying Earnings''' +7% (change at constant FX) ^{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 ===

 

* (bar) '''Underlying earnings per share''': EUR 3.86 (FY25) vs EUR 3.59 (FY24), +8% ^{p. 21}

** +6% from earnings growth ^{p. 21}

* '''Financial flows''' lower, reflecting unfavorable forex impact ^{p. 21}

 

 

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

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

 

* '''FY24 Cash position''': EUR 4.0bn ^{p. 23}

* '''Net cash remittance from subsidiaries''': +EUR 7.5bn ^{p. 23}

=== Solvency II at 224% ===

 

** '''Regulatory & model changes''': +0pts ^{p. 24}

** '''Normalized capital generation''': +28pts ^{p. 24}

** '''Dividend & annual share buyback''': -24pts ^{p. 24}

** '''Management actions, debt & other''': +2pts ^{p. 24}

* ¹Sensitivity to Euro sovereign spreads assumes a 50bps spread widening of the Euro sovereign bonds vs. the Euro swap curve (applied on sovereign and quasi-sovereign exposures) ^{p. 24}.

* ²Sensitivity to credit rating migration assumes 20% of corporate bonds (including private debt) held are downgraded by one full letter (3 notches) ^{p. 24}.

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

 

* ¹Estimated based on the Solvency Capital Requirement (SCR) and the amount of capital (EOF) under Solvency II as of January 1, 2026, as if the Solvency II revision had come into force on the same date ^{p. 25}.

 

=== General Account invested assets ===

 

* 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}

* ² '''Listed equities''' includes hedges; Listed equities excluding hedges at EUR 14bn ^{p. 33}

=== Structured and Private Credit assets ===

 

* G/A: General Account ^{p. 34}

 

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

 

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

** Includes EUR 19.7bn of Private & Structured Credit invested at 4.7% (CLOs, ABS, Infra & CRE debt, Fund financing and Private HY) ^{p. 35}

* ² '''Private & Structured fixed income''' refers to Private & Structured credit (CLOs, ABS, Infra & CRE debt, Fund financing and Private hybrid) ^{p. 35}

 

 

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

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

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

* '''AI''': Artificial Intelligence

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

* '''AY''': Accident Year

* '''CLO''': Collateralized Loan Obligation

* '''CRE''': Commercial Real Estate

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

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

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

* '''EME''': Emerging Markets

* '''ESMA''': European Securities and Markets Authority

* '''EU''': European Union

* '''FX''': Foreign Exchange

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

* '''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

* '''SHE''': Shareholders' Equity

* '''SME''': Small and Medium-sized Enterprises

* '''UEPS''': Underlying Earnings Per Share

* '''UK''': United Kingdom