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

* '''AXA Full Year 2025''' earnings presentation delivered on February 26, 2026 ^{p. 1}

* '''Forward-looking statements''' include predictions, trends, plans, expectations, or objectives based on Management's current views and subject to change ^{p. 2}.

* '''Expected UEPS growth''' for 2026 is provided as one-off guidance in the context of the final year of the Group's current strategic plan ^{p. 2}.

* '''Risk factors''' and uncertainties that may affect AXA's business are described in Part 5 "Risk Factors and Risk Management" of AXA's 2024 Universal Registration Document ^{p. 2}.

* '''Alternative performance measures''' (APMs) used include "underlying earnings", UEPS ("underlying earnings per share"), "underlying return on equity", "combined ratio", and "debt gearing" ^{p. 2}.

* '''Financial statements status''': AXA's consolidated financial statements for the year ended December 31, 2025 were examined by the Board of Directors on February 25, 2026, and are subject to completion of audit procedures ^{p. 2}.

* '''FY25 Highlights''' presented by Thomas Buberl, Group CEO ^{p. 3, 4}

* '''FY25 Business Performance''' presented by Guillaume Borie, Global Head of Finance, Strategy, Underwriting, Risk, and Technology ^{p. 3, 9}

* '''FY25 Financial Performance''' presented by Alban de Mailly Nesle, Group CFO ^{p. 3, 13}

* Section divider slide for '''FY25 Highlights''', presented by Thomas Buberl, Group CEO ^{p. 4}.

* '''Secular trends''' fuel demand across businesses, driven by protection gaps and emerging corporate risks, as well as demographics driving demand for private retirement and healthcare

* '''Our right to win''' is supported by four strategic pillars:

* '''Strategic pillars''' established to lay the foundation for the next plan:

** '''Clear tech''' and AI roadmap ^{p. 8}

** '''Driving efficiency''' across operations ^{p. 8}

** '''Enhancing capital''' allocation discipline ^{p. 8}

** '''Building resilience''' across the business ^{p. 8}

* '''Earnings growth''' outlook supported by strong foundations, providing confidence in sustaining earnings growth ^{p. 8}

* '''Section 2''': FY25 Business Performance presented by Guillaume Borie, Global Head of Finance, Strategy, Underwriting, Risk, and Technology ^{p. 9}.

* '''Premium growth basis''': change for gross written premiums is at constant scope and FX ^{p. 10}.

* '''Earnings growth basis''': change for underlying earnings is at constant FX ^{p. 10}.

* '''Total GWP definition''': FY25 gross written premiums excluding AXA IM, Holdings, AXA Assistance, and AXA Liabilities Managers ^{p. 10}.

| style="text-align:left" | '''France''' (27% of total GWP¹)

| style="text-align:left" | '''Europe''' (38% of total GWP¹)

| style="text-align:left" | '''AXA XL''' (17% of total GWP¹)

| style="text-align:left" | '''Asia, Africa & EME-LATAM''' (18% of total GWP¹)

* '''Gross written premiums''' (GWP) reached EUR 58bn ^{p. 11}.

* (donut) '''GWP mix''': Retail, AXA XL (Large & Specialty), SME & Mid-market — shares not labeled ^{p. 11}.

* '''Underlying earnings''' +9% at constant FX to EUR 5.9bn ^{p. 11}.

* '''Retail and SME & Mid-market''' strategic outlook:

** '''2025''': Growing volumes while expanding margins ^{p. 11}.

** '''Beyond 2025''': Investing to improve customer retention and expanding distribution footprint ^{p. 11}.

* '''AXA XL (Large & Specialty)''' strategic outlook:

** '''2025''': Profitable growth with stable margins ^{p. 11}.

** '''Beyond 2025''': Capitalizing on attractive growth opportunities and continued cycle management ^{p. 11}.

* '''Earnings drivers''' supporting performance:

* '''Gross written premiums''' (GWP) reached EUR 57bn ^{p. 12}.

* (donut) '''GWP mix''': Short-term and Long-term segments — shares not labeled ^{p. 12}.

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

* '''Long-term business''' strategic priorities:

** '''2025''': Accelerating net flows in Savings at attractive margins ^{p. 12}.

** '''Beyond 2025''': Capturing savings & retirement opportunity, sourcing best asset management products for our customers ^{p. 12}.

* '''Short-term business''' strategic priorities:

** '''2025''': Growing technical results while absorbing Mexico VAT impact ^{p. 12}.

** '''Beyond 2025''': Capitalizing on demand for health & protection while further improving our margins ^{p. 12}.

* '''Strategic levers''' for growth and efficiency:

* '''Section 3''': FY25 Financial Performance presented by Alban de Mailly Nesle, Group CFO ^{p. 13}

* '''PVEP''' impacted by higher interest rates on discounting despite strong growth in Life volumes ^{p. 18}.

* '''NB CSM''' driven by robust Savings & Protection sales, with reported growth impacted by higher interest rates for discounting of future profits ^{p. 18}.

* '''NBV''' broadly stable as strong growth in NB CSM balanced lower contribution from short-term multinational business in France ^{p. 18}.

* '''NBV margin''': 4.4% in FY24 → 4.5% in FY25 ^{p. 18}

* '''Normalized CSM''' up by +2%, with CSM release growth reflecting better margins and new business CSM growth impacted by higher rates ^{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}

* (waterfall) '''Contractual Service Margin rollforward''' (in EUR billion): FY24 EUR 33.6bn (o/w Life EUR 25.8bn, o/w Health EUR 7.7bn) → New business CSM +EUR 2.2bn → Underlying return on in-force +EUR 1.3bn → CSM release -EUR 3.0bn (Normalized CSM growth +2%) → Economic variance +EUR 0.6bn → Operating variance -EUR 0.3bn → Affiliates, FX & other -EUR 1.4bn → FY25 EUR 33.0bn (o/w Life EUR 25.4bn, o/w Health EUR 7.6bn) ^{p. 19}

* '''Underlying earnings''' +7% LFL to EUR 3,501m ^{p. 20}

* '''Short-term technical margin''': EUR 415m in FY24 to EUR 479m in FY25 ^{p. 20}

* '''Long-term result''' incl. CSM release: EUR 2,680m in FY24 to EUR 2,804m in FY25 ^{p. 20}

* '''Financial result''': EUR 975m in FY24 to EUR 946m in FY25 ^{p. 20}

* '''Tax & others''': EUR -748m in FY24 to EUR -728m in FY25 ^{p. 20}

* '''Life underlying earnings''' +4% to EUR 2.7bn (prior: EUR 2.6bn) ^{p. 20}

* '''Health underlying earnings''' +17% to EUR 0.8bn (prior: EUR 0.7bn) ^{p. 20}

* '''Short-term margin''' strong on underwriting and claims initiatives; more than offset legislative change on Mexico VAT recoverability of EUR -0.1bn ^{p. 20}

* '''Long-term results''' higher from CSM release increase of +8% on reserve base growth, favorable equity markets, and better margins ^{p. 20}

| style="text-align:left" | '''Underlying earnings'''

| style="text-align:left" | '''Net income'''

* '''Underlying earnings''' drivers:

* '''Net income''' drivers:

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

* (stacked bar) '''Shareholders' equity''' Group share:

** '''FY24''': EUR 49.9bn total (comprising SHE excl. OCI EUR 58.0bn and Net OCI EUR -8.1bn) ^{p. 22}

** '''HY25''': EUR 45.5bn total (comprising SHE excl. OCI EUR 52.7bn and Net OCI EUR -7.2bn) ^{p. 22}

** '''FY25''': EUR 47.2bn total (comprising SHE excl. OCI EUR 54.0bn and Net OCI EUR -6.8bn) ^{p. 22}

* '''SHE (excl. OCI & undated subordinated debt)''': EUR 53.2bn in FY24 → EUR 47.0bn in HY25 → EUR 49.4bn in FY25 ^{p. 22}

* '''Debt gearing''': 20.6% in FY24 → 23.4% in HY25 → 22.3% in FY25 ^{p. 22}

* '''Underlying ROE''': 15.2% in FY24 → 17.5% in HY25 → 16.0% in FY25 ^{p. 22}

| style="text-align:left" | '''Opening Shareholders' equity'''

| style="text-align:left" | '''Closing Shareholders' equity'''

* (bar) '''Net cash remittance''' trend:

** '''FY24''': EUR 7.7bn total, comprising EUR 7.1bn ordinary remittance and EUR 0.6bn proceeds related to L&S reinsurance in-force treaties at AXA France and AXA Life Europe ^{p. 23}

** '''FY25''': EUR 7.5bn total ^{p. 23}

* '''Remittance ratio''' remained stable at 82% in FY24 and 82% in FY25, based on ordinary cash remittance of EUR 7.1bn in FY24 and EUR 7.5bn in FY25 ^{p. 23}

| style="text-align:left" | '''FY24 Cash position'''

| style="text-align:left" | '''FY25 Cash position'''

* '''Grandfathering end impact''' on January 1, 2026 is -10pts to 215% ^{p. 25}.

* '''Section divider''' for the conclusion presentation by Thomas Buberl, Group CEO ^{p. 26}.

* '''Record results''' achieved at the top end of the target range while enhancing reserve prudence ^{p. 27}.

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

* '''Diversified franchise''' well-positioned to capture future growth opportunities ^{p. 27}.

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

* '''Q&A session''' for the Full Year 2025 Earnings presentation held on February 26, 2026 ^{p. 28}.

* '''Investor Relations contact''': +33 1 40 75 48 42; investor.relations@axa.com ^{p. 29}

* '''Follow us''': www.axa.com ^{p. 29}

* Section divider for '''Appendices''' ^{p. 30}

* '''Debt and Invested Assets''' ^{p. 31}

* '''Additional P&C disclosures''' ^{p. 36}

* '''Additional IFRS17 disclosures''' ^{p. 41}

* '''Sustainability''' ^{p. 44}

* '''Total General Account''' invested assets at EUR 450bn ^{p. 33}.

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

* (donut) '''FY25 General Account invested assets''': EUR 450bn total; mix includes Fixed income, Real estate, Infrastructure equity, Listed equities, Private equity and hedge funds, Cash, and Policy loans ^{p. 33}.

* '''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}.

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

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

| style="text-align:left" | '''Fixed income'''

| style="text-align:left" | '''Real estate'''

| style="text-align:left" | '''Infrastructure equity'''

| style="text-align:left" | '''Listed equities'''

| style="text-align:left" | '''Private equity and hedge funds'''

| style="text-align:left" | '''Cash'''

| style="text-align:left" | '''Policy loans'''

| style="text-align:left" | '''Total Insurance Invested Assets'''

* '''Total structured and private credit assets''' stood at EUR 69bn, representing 15% of the total General Account portfolio, with 54% participating ^{p. 34}.

| style="text-align:left" | '''Total Structured and Private Credit Assets'''

| style="text-align:right" | '''69'''

| style="text-align:right" | '''15%'''

* '''General Account''' (G/A) represents the investment portfolio ^{p. 34}.

* '''Debt and Invested Assets''' on page 31 ^{p. 36}

* '''Additional P&C disclosures''' on page 36 ^{p. 36}

* '''Additional IFRS17 disclosures''' on page 41 ^{p. 36}

* '''Sustainability''' on page 44 ^{p. 36}

* '''Property''': high profitability, high ex-price growth ^{p. 37}

* '''Specialty''': medium-high profitability, medium-high ex-price growth ^{p. 37}

* '''Casualty''': medium profitability, medium ex-price growth ^{p. 37}

* '''Professional lines''': lower profitability, lower ex-price growth ^{p. 37}

* (diagram) '''Reinsurance segment''' (illustrative):

* Covered via '''Alternative Capital & Cat Bonds''' ^{p. 39}

* '''More severe years''' result in a negative deviation in ca. 40% of cases ^{p. 40}.

* '''Less severe years''' result in a positive deviation in ca. 60% of cases ^{p. 40}.

* '''Debt and Invested Assets''' ^{p. 31}

* '''Additional P&C disclosures''' ^{p. 36}

* '''Additional IFRS17 disclosures''' ^{p. 41}

* '''Sustainability''' ^{p. 44}

| style="text-align:left" | '''Current Accident Year Undiscounted Technical Margin'''

| style="text-align:left" | '''Current Accident Year Discounting'''

| style="text-align:left" | '''Prior Years' Reserve Development (PYD)'''

| style="text-align:left" | '''Investment Income'''

| style="text-align:left" | '''Insurance Finance Expenses'''

| style="text-align:left" | '''Underlying Earnings before tax'''

| style="text-align:left" | '''Underlying Earnings'''

* '''Gross earned premiums''' EUR 57,656m (+6%) ^{p. 42}

* '''Undiscounted combined ratio''' 95.2% (-1.0pt); of which Nat Cats was 3.4% (-0.4pt) ^{p. 42}

* '''Discounting ratio''' -3.5% (+0.0pt in Combined Ratio points) ^{p. 42}

* '''Net claims reserves''' for current accident year at EUR 19.0bn; duration of 4.0 years; discount rate of 2.8% ^{p. 42}

* '''PYD ratio''' -1.1% (+0.7pt) ^{p. 42}

* '''Average assets''' for FY25 at EUR 115bn; asset book yield at 3.5%; reinvestment yield on fixed income assets at 4.3% ^{p. 42}

* '''Reserves at locked-in rate''' for FY24 at EUR 71bn; liability book yield at 1.9% ^{p. 42}

* '''Underlying earnings growth''' +9% vs. FY24 at constant FX ^{p. 42}

* '''Discount rate sensitivity''': FY25 sensitivity to current accident year discount rate changes (parallel shift of the full-year average yield curve):

* '''Insurance finance expenses''': 2026e pre-tax expected at ~EUR -1.4bn ^{p. 42}

* '''L&H margin analysis''' includes scope impact ^{p. 43}.

* '''Short-term technical margin''' +EUR 60m to EUR 479m, including the recapture of Laya ^{p. 43}.

* '''Gross earned premiums''' +10% to EUR 17,416m ^{p. 43}.

* '''All year combined ratio''' 97.2%, improved 0.1pts ^{p. 43}.

* '''Long-term technical margin''' +EUR 156m to EUR 2,804m ^{p. 43}.

** '''CSM release''' +EUR 215m to EUR 2,954m ^{p. 43}.

** '''Technical experience''' decreased EUR 58m to EUR -150m ^{p. 43}.

* '''Investment income''' (non-VFA only) decreased EUR 1m to EUR 2,484m ^{p. 43}.

** '''Average assets''' (FY25) at EUR 98bn with an asset book yield of 2.5% and FY25 reinvestment yield on fixed income assets of 3.8% ^{p. 43}.

* '''Insurance finance expenses''' (non-VFA only) increased EUR 9m to EUR -1,538m ^{p. 43}.

** '''Reserves at locked-in rate''' (FY24) at EUR 62bn with a liability book yield of 2.5% ^{p. 43}.

* '''Underlying earnings growth''' +7% versus FY24 at constant FX ^{p. 43}.

* '''Debt and Invested Assets''' ^{p. 31}

* '''Additional P&C disclosures''' ^{p. 36}

* '''Additional IFRS17 disclosures''' ^{p. 41}

* '''Sustainability''' ^{p. 44}

* '''Morningstar Sustainalytics rating''': 2025 ESG Risk Rating of 17.0 – Low risk ^{p. 46}

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

* '''France''' scope includes insurance activities, banking activities, and holding ^{p. 47}.

* '''Europe''' scope includes Switzerland (insurance activities), Germany (insurance activities and holding), Belgium and Luxemburg (insurance activities and holding), United Kingdom and Ireland (insurance activities and holding), Spain (insurance activities and holdings), Italy (insurance activities), Prima (insurance activities), and AXA Life Europe (insurance activities) ^{p. 47}.

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

* '''Asia, Africa & EME-LATAM''' scope includes:

** '''Asia''': Japan (insurance activities and holding), Hong Kong (insurance activities), Thailand P&C, China P&C, South Korea, and Asia Holdings which are fully consolidated; China L&S, Thailand L&S, the Philippines L&S and P&C, Indonesia L&S, and India (Life activities disposed on March 11, 2024 and holding) businesses which are consolidated under the equity method and contribute only to NBV, PVEP, the underlying earnings, and net income ^{p. 47}.

** '''Africa''': Morocco (insurance activities and holding), Nigeria (insurance activities and holding), and Egypt (insurance activities and holding) which are fully consolidated ^{p. 47}.

** '''EME-LATAM''': Mexico (insurance activities), Colombia (insurance activities), Brazil (insurance activities and holding), and Türkiye (insurance activities and holding) which are fully consolidated, as well as Russia (Reso) (insurance activities) which is consolidated under the equity method and contributes only to net income ^{p. 47}.

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

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

* '''AXA Investment Managers''' (until July 1, 2025) scope 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}.

* '''Accounting standards''' comparative figures going back to 2023 are under IFRS17/9 standards (effective January 1, 2023); figures prior to 2023 have not been restated and are presented under IFRS4 ^{p. 47}.

* '''Capital-light G/A products''': encompass all products with no guarantees, with guarantees at maturity only or with guarantees equal to or lower than 0% ^{p. 48}

* '''Contractual Service Margin (CSM)''': a component of the carrying amount of asset or liability for a group of insurance contracts representing the unearned profit to be recognized as services are provided to policyholders ^{p. 48}

* '''CSM release''': a portion of CSM stock net of reinsurance at the end of the defined period flowing through profit and loss representing the estimated profit earned by the insurer for providing insurance services during the reporting period ^{p. 48}

* '''Economic variance''': corresponds to the variance of the year-end CSM arising from changes in market conditions, net of the underlying return on in-force ^{p. 48}

* '''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). Other Revenues represent premiums and fees collected on activities other than insurance (i.e. banking, services, and asset management activities) ^{p. 48}

* '''New Business Value (NBV)''': the value of newly issued contracts during the current year. It consists of the sum of (i) the new business contractual service margin, (ii) the present value of the future profits of short-term newly issued contracts during the period, carried by Life entities, considering expected renewals, (iii) the present value of the future profits of pure investment contracts accounted for under IFRS 9, net of (iv) the cost of reinsurance, (v) taxes and (vi) minority interests ^{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}

* '''Operating variance''': the variation of the year-end CSM versus the expected at opening due to (i) the differences between realized and expected operational assumptions, (ii) changes in assumptions such as mortality, longevity, lapses and expenses, and (iii) impact of model changes. Operating variance is net of reinsurance ^{p. 48}

* '''Present value of expected premiums (PVEP)''': the new business volume, equal to the present value at the time of issue of the total premiums expected to be received over the policy term. PVEP is discounted at the reference interest rate and PVEP is Group share ^{p. 48}

* '''Technical experience''': consists of the impacts on the underlying earnings of (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}

* '''Closing slide''' for the AXA Full Year 2025 Earnings presentation, dated February 26, 2026 ^{p. 49}.

* '''AA''': Senior bond rating

* '''AAA''': Senior bond rating

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

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

* '''AI''': Artificial Intelligence

* '''AMF''': Autorité des marchés financiers

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

* '''AXA IM''': AXA Investment Managers

* '''AXA XL''': AXA Corporate Solutions and XL Catlin

* '''AY''': Accident Year

* '''BBA''': Benefit-Bearing Account

* '''CDP''': Carbon Disclosure Project

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

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

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

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

* '''CY''': Calendar Year

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

* '''EME''': Emerging Markets

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

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

* '''ESG''': Environmental, Social, and Governance

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

* '''EU''': European Union

* '''EUR''': Euro

* '''FX''': Foreign Exchange

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

* '''GBP''': Great British Pound

* '''GEP''': Gross Earned Premium

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

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

* '''HY''': High Yield

* '''IFE''': Insurance Finance Expenses

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

* '''IG''': Investment Grade

* '''JPY''': Japanese Yen

* '''LATAM''': Latin America

* '''LFL''': Like-for-Like

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

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

* '''NA''': North America

* '''NB CSM''': New Business Contractual Service Margin

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

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

* '''NPS''': Net Promoter Score

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

* '''PAA''': Participating Account Agreement

* '''PE''': Private Equity

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

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

* '''RCG''': Reinsurance Capital Generation

* '''ROE''': Return on Equity

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

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

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

* '''TVOG''': Time Value of Options and Guarantees

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

* '''UK''': United Kingdom

* '''US''': United States

* '''VAT''': Value Added Tax

* '''VFA''': Variable Fee Approach