February 23, 2017
AXA
FULL YEAR 2016 EARNINGS
Presentation
Certain statements contained herein are forward-looking statements including, but not limited to,
statements that are predictions of or indicate future events, trends, plans 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. Please refer to the section “Cautionary statements”
in page 2 of AXA’s Document de Référence for the year ended December 31, 2015, for a
description of certain important factors, risks and uncertainties that may affect AXA’s business.
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.
A3 | Full Year 2016 Earnings | Presentation | February 23, 2017
TABLE OF CONTENTS
INTRODUCTION & HIGHLIGHTS
Thomas Buberl, Group CEO
FY16 FINANCIAL PERFORMANCE
Gérald Harlin, Group CFO
CONCLUDING REMARKS
Thomas Buberl, Group CEO
PAGE A4
PAGE A15
PAGE A42
Introduction & highlights
Thomas Buberl, Group CEO
A5 | Full Year 2016 Earnings | Presentation | February 23, 2017
FY16 EARNINGS – KEY TAKEAWAYS
Earnings growth delivery with strong second half
Increased dividend supported by earnings growth
Business growth across all lines
Our Ambition: Innovation leader in insurance
A6 | Full Year 2016 Earnings | Presentation | February 23, 2017
EARNINGS GROWTH DELIVERY WITH STRONG SECOND HALF
Underlying earnings
In Euro billion
5.7
FY16
+3%
5.5
FY15
restated
Adjusted earnings
In Euro billion
5.9 6.1
FY16
+3%
FY15
restated
vs.
0% at 1H16
vs.
-2% at 1H16
Changes are in constant Forex
A7 | Full Year 2016 Earnings | Presentation | February 23, 2017
INCREASED DIVIDEND SUPPORTED BY EARNINGS GROWTH
Underlying earnings per share
In Euro per share
Dividend per share
In Euro per share
FY16
+5%
FY15
1.16 1.10
Adjusted earnings per share
In Euro per share
+4%
FY16
2.24
FY15
2.16
+3%
FY16
2.41
FY15
2.34 47% 48%
Payout ratio guidance
45%-55% of adjusted earnings
net of undated debt interest charges
Changes are on a reported basis
A8 | Full Year 2016 Earnings | Presentation | February 23, 2017
L&S – IMPROVED GROWTH WITH SUSTAINED PROFITABILITY
FY16 APE Growth
+2.1%
(vs. -1.9% at 1H16)
FY16 NBV Growth
+5% (40% FY16 NBV margin)
+16%
FY16 APE growth
Belgian buyout Euro 1.5 billion outflows in
Traditional G/A Savings, 70%
take-up rate
US buyout Euro 0.7 billion outflows in
Unit-Linked VA GMxB
Acceleration in Asia1 Focused Net Flows Key inforce actions
Funds &
Others
In Euro billion
+5.1
+1.0
-6.6
+3.6
G/A
Traditional3
Protection
& Health
Unit
Linked3
G/A Capital
Light2
+1.3
Changes are on a comparable basis
All notes are on pages 45 and 46
A9 | Full Year 2016 Earnings | Presentation | February 23, 2017
P&C – CONTINUED GROWTH AND UNDERWRITING DISCIPLINE
Gross revenues P&C CY Loss ratio
+3.4% FY16 growth
+3% Mature markets1
+7% Emerging markets1
94-95% AY CoR by 2020
Target now includes International Insurance
FY15
restated
FY16
-0.5 pt
71.9% 70.8%
Changes are on a comparable basis for revenues and in constant Forex excluding Genworth and Portugal for profitability figures
All notes are on pages 45 and 46
A10 | Full Year 2016 Earnings | Presentation | February 23, 2017
HEALTH – IMPROVED GROWTH AND PROFITABILITY
Gross revenues1 Health1 Combined ratio
-0.2 pt
FY16
94.9%
FY15
restated
95.1%
+4.3% FY16 GR growth
(vs. +3.4% at 1H16)
Euro 12 billion
FY16 Gross Revenues
All notes are on pages 45 and 46
Changes are on a comparable basis
A11 | Full Year 2016 Earnings | Presentation | February 23, 2017
COST SAVINGS UNDERWAY TOWARDS AMBITION 2020
Cost savings
In Euro billion
2.1
Ambition 2020
Target
FY16
achievement
0.3
Administrative expenses
Claims handling costs
Acquisition expenses
+3% UEPS CAGR*
2015 – 2020E
* Contribution to Ambition 2020 UEPS CAGR target from cost savings per 2016 Investor Day
A12 | Full Year 2016 Earnings | Presentation | February 23, 2017
IN LINE WITH AMBITION 2020 TARGETS
Underlying earnings per share
Target Euro 28-32 bn
Cumulative 2016E-2020E
Group operating free cash flow
Adjusted return on equity1
Solvency II ratio2
170% - 230%
Target range
Target 12% - 14%
2016E-2020E
Target 3%-7%
CAGR 2015-2020E
+4% FY16 vs. FY15
Euro 6.2billion
FY16
13.5% FY16
197% FY16
Changes are on a reported basis
All notes are on pages 45 and 46
A13 | Full Year 2016 Earnings | Presentation | February 23, 2017
INVESTING FOR A RESPONSIBLE FUTURE
Launch of additional Euro 150 million
Fund of Funds in Jan 2017
Innovation and
Responsibility
NeXT Building the next
insurance business
model
AXA divested from the
Tobacco Industry
Insurtech start-up studio
Certification
for Gender Diversity
A14 | Full Year 2016 Earnings | Presentation | February 23, 2017
OUR AMBITION: INNOVATION LEADER IN INSURANCE
B Innovative
Services: My Doctor services
app in Egypt
Adjacent
Services: WayGuard in
Germany
C
Prevention: Chat-bot technology
in Asia
A
22% of users have used the clinical or non
clinical services via the app
Includes teleconsultation services,
medical network access, and
claims processing services
7 contacts
per week from each active user
20/80 robot/human interactions
moving to 50/50 in 2017
40 seconds average response time
30% of registered users are active
Contact with customers
every 13 days
versus once a year for insurance on
average
29,521 registered users
1,400 new users per week
36,983 accompanied trips
1,665,612 mins of accompaniment
FY16 Financial performance
Gérald Harlin, Group CFO
A16 | Full Year 2016 Earnings | Presentation | February 23, 2017
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
FY16 FINANCIAL PERFORMANCE
A17 | Full Year 2016 Earnings | Presentation | February 23, 2017
UNDERLYING EARNINGS
+3%
5,688 5,507
FY16 FY15
restated
UNDERLYING EARNINGS
UNDERLYING EARNINGS BY SEGMENT
Changes are in constant Forex. For L&S and P&C changes are in constant Forex and excluding Genworth and Portugal
In Euro million
In Euro millionFY15
restatedFY16 Change
Life & Savings 3,375 3,507 +2%
Property & Casualty 2,482 2,514 +2%
Asset Management 458 416 -8%
Banking 97 78 -19%
Holdings -906 -827 +9%
Underlying Earnings 5,507 5,688 +3%
A18 | Full Year 2016 Earnings | Presentation | February 23, 2017
ADJUSTED EARNINGS
+3%
FY15
restated
6,103 5,940
FY16
Changes are in constant Forex
In Euro million
ADJUSTED EARNINGS
DETAILS OF ADJUSTED EARNINGS
In Euro millionFY15
restatedFY16
Underlying Earnings 5,507 5,688
Net realized capital gains/losses 433 415
o/w realized capital gains 725 880
o/w net impairments -278 -395
o/w hedging of equity portfolio -14 -70
Adjusted Earnings 5,940 6,103
A19 | Full Year 2016 Earnings | Presentation | February 23, 2017
NET INCOME
5,829 5,617
+2%
FY16 FY15
restated
In Euro million
NET INCOME
DETAILS OF NET INCOME
In Euro millionFY15
restatedFY16
Adjusted earnings 5,940 6,103
Change in fair value & Forex -231 -118
o/w gains (losses) on economic hedges 1 -19 -158
o/w change in fair value of assets accounted for as fair value option -212 40
Exceptional and discontinued operations 159 387
Integration & Restructuring costs -177 -454
Intangibles amortization and other -74 -89
Net Income 5,617 5,829
*of which Euro 0.2 billion in Belgium
*
Changes are in constant Forex
All notes are on pages 45 and 46
A20 | Full Year 2016 Earnings | Presentation | February 23, 2017
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
FY16 FINANCIAL PERFORMANCE
A21 | Full Year 2016 Earnings | Presentation | February 23, 2017
L&S – NEW BUSINESS SALES AND MARGINS BY MARKET
New business
sales
(APE)
Total
In Euro million
+ =
New business
value + =
FY15
restated
5,194
-1%
5,163
FY16 FY15
restated
1,301
+14%
FY16
1,406
+2%
FY16
6,600
FY15
restated
6,464
649664
FY15
restated
-1%
FY16
+5%
2,623
FY16
2,471
FY15
restated
FY15
restated
FY16
+7%
1,974 1,807
Emerging markets Total Mature markets
Changes are on a comparable basis
o/w SEA & China +19%
o/w Hong Kong +12%
New business
margin 35% 38% 51% 46% 38% 40%
China NBV
margin 17%
A22 | Full Year 2016 Earnings | Presentation | February 23, 2017
APE
(Euro million)
NBV
margin
Net Flows
(Euro billion)
Business line FY16 change FY16 FY15
restated FY16
Protection & Health 2,949 +2% 61% +6.0 +5.1
G/A Savings 1,438 +15% 18% -3.42 -3.0
of which G/A capital light1 873 +10% 23% -0.4 +3.6
Unit-Linked 1,549 -10% 31% +3.92 +1.3
Mutual Funds & Other 664 +10% 12% +0.4 +1.0
Total 6,600 +2% 40% +6.9 +4.4
L&S – NEW BUSINESS SALES AND MARGINS BY BUSINESS
Changes are on a comparable basis
o/w Euro -1.5
billion Belgium
buyout
o/w Euro -0.7
billion US GMxB
buyout
All notes are on pages 45 and 46
A23 | Full Year 2016 Earnings | Presentation | February 23, 2017
L&S – UNDERLYING EARNINGS BY BUSINESS
Changes are on comparable basis for pre-tax earnings and in constant forex excluding Genworth and Portugal for post-tax earnings
TOTAL LIFE & SAVINGS1
(post-tax) In Euro million
PROTECTION & HEALTH (pre-tax)
In Euro million
G/A SAVINGS (pre-tax)
In Euro million
UNIT-LINKED (pre-tax)
In Euro million
Full detail in appendix on pages B19 to B30
-5%
FY16
2,415
FY15
restated
2,496
848822
FY15
restated
+2%
FY16 FY15
restated
998
-2%
FY16
986
1H16
1,915 1,835
1H15
restated
+4%
TOTAL LIFE & SAVINGS
(post-tax) In Euro million
FY16
3,507 3,375
FY15
restated
+2%
Lower prior year reserve
development and non-repeat of
assumption changes in France
(Euro -0.3 billion) -
+ Lower expenses and higher
technical margin
- Lower investment margin
Higher result from US VA GMxB +
- Lower fees and revenues in Italy
+ Higher net technical margin
Decrease of corporate tax rate
in France and Euro 35 million
higher positive tax one-offs
- Higher DAC amortization in the US
A24 | Full Year 2016 Earnings | Presentation | February 23, 2017
L&S – UNDERLYING EARNINGS DRIVERS
Changes are on comparable basis for pre-tax earnings and in constant forex excluding Genworth and Portugal for post-tax earnings
TOTAL LIFE & SAVINGS1
(post-tax) In Euro million
+4%
1H16
1,915
1H15
restated
1,835
TOTAL LIFE & SAVINGS
(post-tax) In Euro million
+2%
FY16
3,507
FY15
restated
3,375
In Euro million
35131
110107
15124
FY16
3,507
Higher
positive tax
one-offs
Tax Exceptionals
in French
Protection
-259
Forex &
other3
Protection
& Health1
3,375
G/A
Savings
US VA
GMxB2
-131
Other Unit-
Linked
FY15
restated
• Lower prior year reserve developments
(Euro -209 million)
• Non-repeat of a favorable change in
assumptions (Euro -50 million)
1. Protection & Health excluding exceptionals in French Protection
2. US VA GMxB includes a positive GMxB hedge margin and the non-repeat of reserve strengthening in FY15
3. Forex & other: forex, scope, minority interests and mutual funds & other
Includes:
• Lower pre-tax earnings impact
• Lower corporate tax rate in France
Full detail in appendix on pages B19 to B30
A25 | Full Year 2016 Earnings | Presentation | February 23, 2017
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
FY16 FINANCIAL PERFORMANCE
A26 | Full Year 2016 Earnings | Presentation | February 23, 2017
P&C – REVENUES BY SEGMENT
• Average price effect of +3.8%
• Motor revenues up 4%
• Non-motor revenues up 4%
+3%
35,604 34,831
FY15
restated
FY16
FY16
18,105
FY15
restated
+4%
18,057
17,217
+2%
FY16
16,631
FY15
restated
• Average price effect of +1.5%
COMMERCIAL LINES In Euro million
PERSONAL LINES In Euro million
TOTAL In Euro million
Changes are on a comparable basis
A27 | Full Year 2016 Earnings | Presentation | February 23, 2017
P&C – PRICE EFFECT BY COUNTRY AND SEGMENT
Changes are on a comparable basis
Prices expected
to be stable
Prices expected
to decrease
Prices expected
to increase
Price
effect
Revenues
growth
Price
effect
Revenues
growth 2017 Market pricing trends
France +0.4% +1.7% +1.6% -3.2%Slight increase in prices expected in Personal lines.
Increased pressure on prices in Commercial lines.
Germany +2.7% +1.5% +0.8% +2.7%Prices expected to be stable in both Personal and
Commercial lines.
UK & Ireland +5.8% +7.2% +1.7% +7.2% Hardening of the cycle expected in Personal lines.
Switzerland +0.2% +1.0% +0.1% +0.3%Continued price softening in Personal lines and
stable pricing in Commercial lines.
Belgium +2.3% +0.9% +1.0% +0.8%Price decreases both in Personal and Commercial
lines due to increased competition.
Italy -2.9% -0.7% 0.0% +2.0%Price decreases both in Personal and Commercial
lines due to increased competition.
Spain +2.5% +0.6% +3.7% +5.6%First signs of hardening as profitability level are low in
the market.
EMEA-LATAM +20.7% +9.6% +4.3% +5.2%
Asia +1.0% +4.3% -1.4% -3.2%
Direct +4.9% +7.3% - -
Total +3.8% +3.6% +1.5% +2.3%
Personal Lines Commercial Lines
FY16
A28 | Full Year 2016 Earnings | Presentation | February 23, 2017
P&C – REVENUES AND MARGINS BY MARKET
+ + = Revenues
Current year
combined
ratio
= + +
Emerging
markets Total
In Euro million
Direct Mature markets
Changes are on a comparable basis for revenues and in constant Forex excluding Genworth and Portugal for current year combined ratio
FY15
restated
5,159 5,134
34,831 35,604
FY16
2,732
27,606 26,940
FY15
restated
FY16 FY15
restated
+3%
FY16
+7%
2,864
+2%
FY16 FY15
restated
+7%
FY16 FY16
97.7%
FY16
102.0%
+0.2pt
96.9% 97.7%
FY15
restated
96.9% 100.9%
FY15
restated
FY16
99.3% 98.7%
FY15
restated
FY15
restated
+9% on an economic
gross revenues basis1
All notes are on pages 45 and 46
A29 | Full Year 2016 Earnings | Presentation | February 23, 2017
P&C – UNDERLYING EARNINGS
INVESTMENT INCOME (pre-tax)
In Euro million
COMBINED RATIO
P&C UNDERLYING EARNINGS In Euro million
+2%
FY16
2,514
FY15
restated
2,482
Current year
combined ratio
Prior year reserve
developments
All-year
combined ratio +
0%
FY16
2,202
FY15
restated
2,260
Changes are in constant Forex excluding Genworth and Portugal
• Investment yield of 3.4% vs. 3.6% in FY15
• Higher average invested assets in FY16
96.2%
FY16
-1.2%
FY15
restated
-1.4%
FY16
97.7%
0.5%
FY15
restated
97.7%
0.7%
FY16
96.5%
FY15
restated
Natural Catastrophes
Lower loss ratio
Higher acquisition costs
+ -
Full detail in appendix on pages B35 to B38
A30 | Full Year 2016 Earnings | Presentation | February 23, 2017
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
FY16 FINANCIAL PERFORMANCE
A31 | Full Year 2016 Earnings | Presentation | February 23, 2017
AM – ASSETS UNDER MANAGEMENT
Average AUM and net flows in Euro billion
Revenues in Euro million
Average AUM (excl. Joint Ventures)
595618
-3%
FY15 FY16
464453
FY16
+1%
FY15
Net flows (incl. Joint Ventures)1
Net flows
-12
+3
FY16 FY15
Average AUM
Revenues (excl. Joint Ventures)
Revenues
FY15
-3%
FY16
1,180 1,242
FY15 FY16
+56 +42
Average AUM and net flows in Euro billion
Revenues in Euro million
FY15 FY16
-3%
2,530 2,580
Euro 38 billion from Joint Ventures in Asia in
FY16 vs. Euro 34 billion in FY15
Changes are on a comparable basis
+1% excl.
Friends Life
impact
All notes are on pages 45 and 46
A32 | Full Year 2016 Earnings | Presentation | February 23, 2017
AM – UNDERLYING EARNINGS
ASSET MANAGEMENT In Euro million
416
458
-8%
FY16 FY15 191224
-16%
FY15 FY16
225234
-1%
FY16 FY15
In Euro million
In Euro million
Changes are in constant Forex
Including a negative tax one-off of
Euro 50 million in FY16 at AB.
+6% excl.
Tax one-off
Full detail in appendix on pages B42 to B43
A33 | Full Year 2016 Earnings | Presentation | February 23, 2017
Property & Casualty
Group earnings
Life & Savings
Asset Management
Balance sheet
FY16 FINANCIAL PERFORMANCE
A34 | Full Year 2016 Earnings | Presentation | February 23, 2017
FY16
4.0%
FY15*
3.9%
FY14
3.8%
FY13
3.7%
FY12
3.6%
FY11
3.3%
FY10
3.7%
ASSET & LIABILITY MANAGEMENT (1/4) Diversified and resilient investment portfolio
FY16 Total General Account
invested assets 83% in Fixed income
Limited yield dilution
Govies
& related
Corporate
bonds
Fixed income Assets duration
as at December 31, 2016
Life & Savings 8.3 years
Property & Casualty 5.6 years
Long asset duration leading to a slow
yield dilution
Life & Savings
Property & Casualty
FY16 FY15*
FY14
3.9%
FY13
3.9%
FY12
3.6%
FY11
3.4%
FY10
3.9% 4.0% 4.0%
Real estate
5%
Listed equities
3%
Cash
4%
Other fixed income2
8%
Policy loans
1%
Alternative investments1
3%
40%
35%
Euro 583
billion3
*Not restated for the scope changes
All notes are on pages 45 and 46
Full detail in appendix on pages B45 to B62
A35 | Full Year 2016 Earnings | Presentation | February 23, 2017
ASSET & LIABILITY MANAGEMENT (2/4) Diversified and resilient investment portfolio
Government and related bonds rating
40% of total General Account invested assets in FY16
13%
35%
A
BBB
32% AA
AAA
Corporate bonds rating1
35% of total General Account invested assets in FY16
AAA
Non rated
1%
Below investment
grade
1%
11% Euro 202
billion
Below investment
grade
8%
Average rating of government and related bonds
maintained in the AA range
Average rating of corporate bonds
maintained in the A range
All notes are on pages 45 and 46
15%
19%
A
BBB
38%
Euro 236
billion
AA
27%
A36 | Full Year 2016 Earnings | Presentation | February 23, 2017
Investment Grade
credit
Average rating: A
ASSET & LIABILITY MANAGEMENT (3/4) Well diversified and high quality new investments
New fixed income investments in FY16 Resilient new investment yield
FY16 new
investments
ABS
Below Investment Grade credit1
Government bonds & related Average rating: AA
Yield on new investments in fixed income assets
for Life & Savings and Property & Casualty entities
FY16
Eurozone 1.9%
US 2.4%
Japan 0.7%
Switzerland 0.9%
Total 1.8%
Euro
82 billion Amount invested in Fixed income
in FY16
~12%
~28%
~8%
~52%
Focus on investment grade credit
~81%
Corporate bonds
~8%
Other loans
~11%
Commercial Real Estate loans
All notes are on pages 45 and 46
A37 | Full Year 2016 Earnings | Presentation | February 23, 2017
Inforce business New business
Products sold in combination with higher
margin Unit-Linked business (hybrid2 sales)
FY16
L&S average guaranteed rate
Yield on total L&S asset base
Spread above
guaranteed rates
Spread above
guaranteed rate
FY16
L&S average guaranteed rate
Reinvestment yield on L&S fixed income assets
+140 bps
1.9%
3.3% +140 bps
0.4%
1.8%
Guidance:
65-75 bps
Resilient investment
margin1
FY16 FY15
79 bps 73 bps
Significant buffer to cover guarantees and to manage crediting
rates to preserve investment margin
Average reserves of Euro 363 billion
ASSET & LIABILITY MANAGEMENT (4/4) Life & Savings General Account investment spreads and margin
All notes are on pages 45 and 46
A38 | Full Year 2016 Earnings | Presentation | February 23, 2017
SHAREHOLDERS’ EQUITY
In Euro billion
FY16
70.6
FY15
68.5
Shareholders’ equity Key drivers of change
In Euro billion
Adjusted
ROE1 14.1% 13.5%
All notes are on pages 45 and 46
FY16 vs. FY15
Net income for the period +5.8
Change in net unrealized capital gains +1.7
Dividends -2.7
Subordinated debt -1.5
Change in pension benefits -0.6
Forex and other -0.7
+
-
-
-
-
+
A39 | Full Year 2016 Earnings | Presentation | February 23, 2017
Interest
Cover3
Debt
Gearing2
FY15
26%
10.7x
FY16 In Euro billion
DEBT & RATINGS
26%
15.7x
FY16
18.3
1.1
9.1
8.1
FY15
17.0
0.6
6.9
9.5
AA- stable
Aa3 stable
AA- stable
as of 27/10/2016
as of 09/09/2016
as of 28/06/2016
Financial debt Debt ratios
Ratings
Subordinated debt1
Senior debt
Undated subordinated debt
Euro 3 billion debt
issued in FY16 to
refinance in
advance part of
outstanding debt
All notes are on pages 45 and 46
A40 | Full Year 2016 Earnings | Presentation | February 23, 2017
SOLVENCY II RATIO
Required capital
Available capital
FY16
29.4
57.9
FY15
28.8
59.2
Solvency II ratio 205% 197%
-14 pts
Dividend
-10 pts
Operating
return
197%
Subordinated
debt, forex & other
-4 pts
Market impact
excl. forex
FY16
+19 pts
FY15
205%
In Euro billion
Key sensitivities
Solvency II ratio roll-forward
+3 pts
-9 pts
-1 pt
+6 pts
-7 pts
Solvency II ratio1
Equity markets -25%
Equity markets +25%
Interest rate -50bps
Ratio as of December 31, 2016
Corporate spreads +75bps
Interest rate +50bps
197%
200%
188%
196%
203%
190%
All notes are on pages 45 and 46
A41 | Full Year 2016 Earnings | Presentation | February 23, 2017
STRONG CASH FLOW GENERATION & REMITTANCE
Remittance
ratio
In Euro billion
88%
FY15 restated
5.1
6.2
5.4
6.2
FY16
81%
0% +7% FY16 vs. FY15 growth
Changes are on a comparable basis
Cash remitted from entities
Operating Free Cash Flows
Increased remittance ratio
from entities in FY16
Concluding remarks
Thomas Buberl, Group CEO
A43 | Full Year 2016 Earnings | Presentation | February 23, 2017
FY16 EARNINGS – KEY TAKEAWAYS
AXA = Consistent Delivery
Top line growth (+3%)
Earnings (+4% UEPS)
Dividend (+5% DPS)
ROE (13.5%)
Financial Strength (197% SII ratio)
Q&A
FULL YEAR 2016 EARNINGS
A45 | Full Year 2016 Earnings | Presentation | February 23, 2017
NOTES (1/2)
In this document, “restated” stands for the retroactive restatements mainly for the sale of the UK Life & Savings and reclassification of
the International Insurance segment split into L&S and P&C and some Protection products with Unit-Linked features which were
previously classified under the Unit-Linked Line of Business are now classified under the Protection & Health Line of Business.
Page A8:
1. Asia includes Hong Kong and South East Asia, India and China region. 2. G/A Savings products which, at inception, create more AFR than the economic capital they consume. 3. FY15 figures were restated to take into account the reclassification at 1H16 of non-GMxB Variable Annuity product (SCS) in the
US from G/A Savings to Unit-Linked, to align with classification for APE and NBV. This reclassification explains the difference with the net flows reported page 68 of the financial supplement.
Page A9: 1. Direct business is split in Mature and Emerging markets.
Page A10: 1. Health is reported in Life & Savings (France, the US, Japan, Germany, Greece, Hong Kong, Singapore and Indonesia) and
Property & Casualty (the UK, Belgium, the EMEA-LATAM region, Luxembourg, Hong Kong, Italy, Malaysia, Spain, Singapore, Thailand, AXA Assistance and Direct) in line with reporting standards. The additional focus on Health is in line with the new strategy and organization dedicated to the Health business.
Page A12:
1. Adjusted ROE: return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average
shareholders’ equity excluding undated debt and reserves related to change in fair value.
2. The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US
equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016.
Solvency II ratio is estimated including the proposed amount of dividend for FY16. Dividends are declared by the Board at its
discretion based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval.
Page A19:
1. Interest rate and Foreign exchange economic hedges not eligible for hedge accounting under IAS 39.
Page A22:
1. G/A Savings products which, at inception, create more AFR than the economic capital they consume.
2. FY15 figures were restated to take into account the reclassification at FY16 of non-GMxB Variable Annuity product (SCS) in the
US from G/A Savings to Unit-Linked, to align with classification for APE and NBV. This reclassification explains the difference with
the net flows reported page 68 of the financial supplement.
Page A28:
1. Economic gross revenues: all entities are consolidated on a group share basis.
A46 | Full Year 2016 Earnings | Presentation | February 23, 2017
NOTES (2/2)
Page A31:
1. AXA IM’s joint ventures in Asia (China, Korea and India) are included at 100% in net flows, opening and closing assets under
management but are excluded from revenues and average assets under management as they are not fully consolidated.
Page A34:
1. Mainly Private Equity and Hedge Funds.
2. Other fixed income include Asset backed securities (Euro 13 billion), residential loans (Euro 12 billion), commercial & agricultural
loans (Euro 21 billion) and Agency Pools (Euro 1 billion).
3. FY16 invested assets referenced in page 52 of the financial supplement are Euro 788 billion, which include notably Euro 175
billion of Unit-linked assets and Euro 35 billion related to the banking segment.
Page A35:
1. Corporate bonds not rated by external rating agencies are reallocated under AXA’s internal ratings: AAA: Euro 0.3 billion / AA:
Euro 1.4 billion / A: Euro 3.0 billion / BBB: Euro 4.7 billion / Below investment grade: Euro 2.9 billion.
Page A36:
1. Mainly short duration high yield.
Page A37:
1. Group investment margin on total Life & Savings General Account business.
2. Hybrid products are savings products allowing clients to invest in both Unit-Linked and General Account assets.
Page A38:
1. Adjusted ROE: return corresponds to adjusted earnings net of interest charges on undated debt. Equity corresponds to average
shareholders’ equity excluding undated debt and reserves related to change in fair value.
Page A39:
1. Including Euro 1.3 billion of reversal of market-to-market on interest rates derivatives in FY16 versus Euro -0.6 billion in FY15.
2. Starting 1H16, debt gearing is calculated gross of Holding company cash. FY15 debt gearing net of cash was reported at 23%.
3. Including undated debt interest charges.
Page A40:
1. The Solvency II ratio is estimated based on AXA’s internal model calibrated based on adverse 1/200 year shock and assuming US
equivalence. AXA’s internal model was approved by ACPR on November 18, 2015. Solvency II took effect January 1, 2016.
Solvency II ratio is estimated including the proposed amount for dividend. Dividends are declared by the Board at its discretion
based on a variety of factors described in AXA’s Annual Reports and then submitted to AXA’s shareholders for approval.
Page A43:
1. Top line growth is measured by Economic Gross Revenues. ROE is adjusted earnings net of interest charges on undated debt.
Equity corresponds to average shareholders’ equity excluding undated debt and reserves related to change in fair value
A47 | Full Year 2016 Earnings | Presentation | February 23, 2017
DEFINITIONS
AXA’s FY16 financial statements are subject to a completion of limited review by AXA’s independent auditors. AXA's FY16 results have
been prepared in accordance with IFRS and interpretations applicable and endorsed by the European Commission as of December 31,
2016.
Underlying Earnings, Adjusted Earnings, APE, NBV and Group Operating Free Cash Flows are non-GAAP measures and as such are
not audited, may not be comparable to similarly titled measures reported by other companies and should be read together with our
GAAP measures. Management uses these non-GAAP measures as key indicators of performance in assessing AXA’s various
businesses and believes that the presentation of these measures provides useful and important information to shareholders and
investors as measures of AXA’s financial performance. For a reconciliation of underlying and adjusted earnings to net income see pages
A16 and A17 of this presentation.
Life & Savings emerging markets: APE and NBV: China, Czech Republic, Hong Kong, India, Indonesia, Mexico, Morocco, Philippines,
Poland, Singapore, Thailand and Turkey; Revenues: Colombia, Czech Republic, Hong Kong, Indonesia (excl. bancassurance entity),
Mexico, Morocco, Poland, Singapore, Slovakia and Turkey.
Property & Casualty emerging markets: Revenues: Brazil, Colombia, the Gulf region, Hong Kong, Malaysia, Mexico, Morocco,
Singapore, Thailand and Turkey.
South-East Asia, India and China (L&S): APE and NBV: China, India, Indonesia, Philippines and Singapore and Thailand; Revenues:
Singapore and non-bancassurance subsidiaries in Indonesia; China, India, Philippines, and bancassurance business in Indonesia and
Thailand are not included in revenues due to consolidation under equity method; Malaysian operations are not consolidated.
Asia (P&C): Hong Kong, Malaysia, Singapore and Thailand. China and India are not included in revenues due to consolidation under
equity method. Indonesian operations are not consolidated.
EMEA-LATAM region: Europe, Middle East, Africa & Latin America. For Life & Savings: Colombia, Czech Republic, Greece,
Luxembourg, Mexico, Morocco, Poland, Slovakia, and Turkey are fully consolidated; Portugal was disposed on April 1, 2016; Nigeria is
consolidated under the equity method and contributes only to the underlying earnings, adjusted earnings and net income. For Property
& Casualty: Brazil, Colombia, Greece, the Gulf region, Luxembourg, Mexico, Morocco and Turkey are fully consolidated; Russia,
Nigeria and Lebanon are consolidated under the equity method and contribute only to the underlying earnings, adjusted earnings and
net income; Brazil is fully consolidated since January 1, 2016; Portugal was disposed on April 1, 2016.
Direct (P&C): AXA Global Direct (Belgium, France, Italy, Japan, Poland, South Korea and Spain), UK Direct operations. In France,
Natio is not included in revenues due to consolidation under equity method.
Emerging markets include the following entities: EMEA-LATAM Region (Brazil, Colombia, Czech Republic, the Gulf region, Lebanon,
Mexico, Morocco, Poland, Slovakia, Turkey and Russia), Hong Kong, South-East Asia (Indonesia, Malaysia, Singapore, Philippines,
Singapore and Thailand), India and China, excluding Direct operations.
Mature markets include the following entities: AXA Assistance, AXA Corporate Solutions Assurance, Belgium, France, Germany,
Greece, Italy, Ireland, Japan, Luxembourg, Portugal (in 2015 only), Switzerland, Spain, the United Kingdom and the United States.
February 23, 2017
AXAFULL YEAR 2016 EARNINGS
Appendices
Certain statements contained herein are forward-looking statements including, but not limited to,statements that are predictions of or indicate future events, trends, plans or objectives. Unduereliance should not be placed on such statements because, by their nature, they are subject toknown and unknown risks and uncertainties. Please refer to the section “Cautionary statements”in page 2 of AXA’s Document de Référence for the year ended December 31, 2015, for adescription of certain important factors, risks and uncertainties that may affect AXA’s business.AXA undertakes no obligation to publicly update or revise any of these forward-lookingstatements, whether to reflect new information, future events or circumstances or otherwise.
B3 | Full Year 2016 Earnings | Appendices | February 23, 2017
TABLE OF CONTENT
BUSINESS OVERVIEW
GROUP
LIFE & SAVINGS
PROPERTY & CASUALTY
HEALTH
ASSET MANAGEMENT
BALANCE SHEET
CORPORATE RESPONSIBILITY
B04
B12
B16
B33
B39
B41
B44
B73
Business overview
B5 | Full Year 2016 Earnings | Appendices | February 23, 2017
GROUP REVENUES AND UNDERLYING EARNINGS
1. Direct business revenues and underlying earnings are split within geography2. Underlying earnings excluding holdings3. Other: AXA Corporate Solutions, AXA Assistance, AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas, AXA Global P&C, AXA Liabilities
Managers, Family Protect and Banking.4. EMEA-LATAM: Luxembourg, Russia (P&C and underlying earnings only), Poland, Czech Republic and Slovakia (L&S only), Greece, Turkey, Mexico, Morocco, Nigeria (underlying
earnings only), Colombia, Gulf region (P&C only), Lebanon (P&C and underlying earnings only) and Brazil (P&C only)5. Europe (excl. France): United Kingdom & Ireland, Germany, Switzerland, Belgium, Italy and Spain
Euro 100 billion
Revenues by geography1 Underlying earnings by geography1,2
EMEA-LATAM4
6%
Asia (incl. Japan)11%
Asset management4%
Other3
5%
Europe (excl. France)5
37%
United States14%
France24%
Euro 7 billion
EMEA-LATAM4
3%
Asia (incl. Japan)17%
Asset management6%
Other3
4%
Europe (excl. France)5
35%
United States14%
France21%
B6 | Full Year 2016 Earnings | Appendices | February 23, 2017
Brokers – IFAs & others25%
LIFE & SAVINGS | Scope overview
FY16 APE by geography
Total APE: Euro 6,600 million
Global footprint
US26%
Europe (excl. France)2
17%
EMEA-LATAM1
2%
Asia (incl. Japan)27%
France28%
Well balanced business mix
Strong proprietary networks
G/A Savings22%
Unit-Linked 23%
Protection & Health
45%
Mutual Funds & other10%
FY16 APE by business
FY16 APE by channel
Partnerships21% Agents & salaried
sales force53%
1. EMEA-LATAM: Greece, Morocco, Mexico, Turkey, Poland and Czech Republic2. Europe (excl. France): Germany, Switzerland, Belgium, Italy and Spain3. Other: Architas, AXA Life Invest (excluding Germany & Japan), AXA Global Life and
AXA Corporate Life Reinsurance Company
Total APEEuro 6,600 million
Total APEEuro 6,600 million
Other3
0%
B7 | Full Year 2016 Earnings | Appendices | February 23, 2017
Germany11%
EMEA-LATAM3
12%
Spain5%
France21%
United Kingdom & Ireland
15%
Belgium6%
Italy5%
Other2
0%AXA Corporate Solutions7%
Switzerland9%
Asia6%
AXA Assistance4%
Other3
15%
Workers’ compensation4%
Agents32%
PROPERTY & CASUALTY | Scope overview
AXAWinterthur
Property22%
Construction2%
Partnerships5%
Direct511%
Brokers – IFAs & other53%
FY16 revenues by channel
FY16 revenues by geography1 FY16 revenues by business
1. Direct business revenues are split within geography2. AXA Global P&C and AXA Liabilities Managers3. EMEA-LATAM: Greece, Turkey, Mexico, Morocco, the Gulf region, Colombia, Brazil,
Luxembourg and Poland (Direct)4. Other includes transport, protection and others5. Sales recorded through the Direct channel include the sales of the Direct business
unit and Direct sales from other entities
Motor39%
Total: Euro 35.6 billion
Global footprint Strong presence in Motor
Strong proprietary networks
Liability7%
TotalEuro 35.6 billion
TotalEuro 35.6 billion
Health10%
B8 | Full Year 2016 Earnings | Appendices | February 23, 2017
AXA’S FOOTPRINT IN EMERGING MARKETS
#2#14 India #14 China
FY16 APE by geography
Thailand12% China
21%
Other1
3%
Hong Kong38%
Mexico2%
Total APE: Euro 1,406 million
Indonesia9%
Singapore7%
Philippines3%
Czech Republic3% Poland
2%
#2 IndonesiaThailand
#6 SingaporeHong Kong #4#5
Key rankings2 2016
#3 Malaysia#1 Hong Kong
#2 SingaporeMexico #3#2
Philippines
Turkey
1. Other: India, Turkey and Morocco2. Source: AXA FY16 Activity report. 2015 ranking for Philippines Life & Savings, Mexico and Gulf region Property & Casualty
Turkey20%
Malaysia6% Mexico
28%
Total Revenues: Euro 5,134 million
Singapore5%
Colombia8%
Morocco5%
Gulf region16%
FY16 revenues by geography
Hong Kong8%
#2 Colombia
Life & Savings Property & Casualty
Thailand2%
Key rankings2 2016
Brazil2%
B9 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S ECONOMIC GROSS REVENUES
Economic gross revenues1
In Euro millionFY15
restated FY16 Change on comparable basis
IFRS2 change oncomparable basis
Life & SavingsUnited States 13,628 14,303 +4% +4%France 16,266 17,206 +5% +6%Germany 6,650 6,662 0% 0%Switzerland 7,170 7,044 -1% -1%Belgium 1,715 1,210 -29% -29%Italy 2,388 1,974 -17% -17%Spain 756 792 +5% +5%EMEA-LATAM3 1,163 984 +1% +1%Japan 4,139 5,094 +10% +10%South-East Asia, India & China 2,712 3,166 +19% +16%Hong Kong 2,507 2,737 +13% +13%Other4 428 253 -35% -35%
Total 59,522 61,424 +2% +2%
1. Economic gross revenues definition: all entities are shown at ownership rate.2. IFRS: IFRS scope of consolidation (fully consolidated entities at 100% and equity-method entities at 0%).3. EMEA-LATAM: Colombia, Czech Republic, Greece, Luxembourg, Mexico, Morocco, Nigeria, Poland, Portugal (only for FY15 restated), Slovakia and Turkey4. Other: AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas and Family Protect
B10 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C ECONOMIC GROSS REVENUES
Economic gross revenues1
In Euro millionFY15
restated FY16 Change on comparable basis
IFRS2 change oncomparable basis
Property & CasualtyFrance 6,014 6,736 0% 0%United Kingdom & Ireland 4,792 4,657 +8% +8%Germany 3,909 4,016 +3% +3%Switzerland 3,069 3,056 +1% +1%Belgium 2,010 2,081 +4% +4%Italy 1,473 1,466 0% 0%Spain 1,535 1,566 +2% +2%EMEA-LATAM3 4,292 4,048 +10% +8%Direct 2,810 2,939 +6% +7%Asia 1,530 1,562 +3% +1%AXA Corporate Solutions 2,226 2,289 0% 0%AXA Assistance 1,226 1,276 +5% +5%Other4 86 103 +16% +16%
Total 34,973 35,794 +4% +3%
1. Economic gross revenues definition: all entities are shown at ownership rate.2. IFRS: IFRS scope of consolidation (fully consolidated entities at 100% and equity-method entities at 0%).3. EMEA-LATAM: Brazil, Colombia, Greece, the Gulf region, Lebanon, Luxembourg, Mexico, Morocco, Nigeria, Portugal (only for FY15 restated), Russia and Turkey4. Other: AXA Global P&C and AXA Liabilities Managers
B11 | Full Year 2016 Earnings | Appendices | February 23, 2017
ASSET MANAGEMENT| Scope overview
Complementary business models
• Multi-expert model: structured by“Expertise”
• Expertise in fixed income, equities,quantitative equities
• Focus on alternative investments(structured finance, real estate, fundsof hedge funds)
• Client centric business model acrossthe full value chain
• Risk-reducing, return-seeking, diversifyingstrategies and customized solutions
• Expertise in actively managed equity and fixedincome strategies, as well as index strategies
• Growing platform of alternative and multi-assetservices and solutions
• Institutional research and trading
PRODUCT OFFER
• Separate distribution platforms for third parties & AXA insurance companies
• Global and integrated distribution platforms through Institutions, Retail and Private Client channels
DISTRIBUTION
• Mainly Europe • US, Europe and AsiaFOOTPRINT
• Euro 486 billion as at 31/12/2016 • Euro 717 billion as at 31/12/2016 AuM
Group
B13 | Full Year 2016 Earnings | Appendices | February 23, 2017
REVENUES
Revenues by segment
1. Restated to exclude UK Life and Savings business operations in FY15
Life & Savings1 58,862 60,282 +2% +2%
Property & Casualty 34,831 35,604 +2% +3%
Asset Management 3,822 3,710 -3% -3%
Banking 621 596 -4% -4%
Revenues 98,136 100,193 +2% +2%
In Euro millionFY15
restated FY16 Reported change
Comparable change
B14 | Full Year 2016 Earnings | Appendices | February 23, 2017
UNDERLYING EARNINGS BY GEOGRAPHY
1. Changes at constant forex excluding Genworth and Portugal2. EMEA-LATAM: Luxembourg, Russia (P&C only), Poland (L&S only), Czech Republic and Slovakia (L&S only), Greece, Turkey, Mexico, Morocco, Nigeria, Colombia, Gulf region (P&C only), Lebanon (P&C only),
Brazil (P&C only) and Portugal (FY15 only)3. Other: AXA Life Invest Services, AXA Corporate Solutions Life Reinsurance, AXA Global Life, Architas, Family Protect, AXA Global P&C and AXA Liabilities Managers
Life & Savings 3,375 3,507 +4% +2%United Sates 834 905 +9% +7%France 825 774 -6% -8%Japan 412 480 +17% +5%Germany 165 223 +36% +36%Switzerland 328 287 -12% -11%Belgium 163 182 +12% +12%Italy 98 76 -23% -23%Spain 48 44 -10% -10%EMEA-LATAM2 67 49 -27% -10%Hong Kong 353 366 +4% +3%South-East Asia & China 145 174 +20% +22%Other3 -63 -52 -18% -16%Property & Casualty 2,482 2,514 +1% +2%France 507 598 +18% +14%United Kingdom & Ireland 273 203 -26% -18%Germany 378 286 -24% -24%Switzerland 503 474 -6% -5%Belgium 241 179 -26% -26%Italy 147 110 -25% -25%Spain 70 92 +33% +33%EMEA-LATAM2 -76 144 n.a. n.a.Direct 135 168 +25% +34%Asia 53 49 -8% -8%AXA Corporate Solutions 134 122 -9% -9%AXA Assistance 25 13 -47% -47%Other3 94 75 -20% -18%Asset Management 458 416 -9% -8%AB 224 191 -15% -16%AXA IM 234 225 -4% -1%Banking 97 78 -19% -19%Holdings -906 -827 +9% +9%
Total 5,507 5,688 +3% +3%
In Euro millionUnderlying Earnings
FY15restated FY16 Reported
changeChange at
constant Forex1
Or +19% restatingfrom the change in
Group share in Bhartifrom 26% to 49%
B15 | Full Year 2016 Earnings | Appendices | February 23, 2017
FY16 KEY SENSITIVITIES
1. Consists of gains/losses on derivatives and forex economic hedges not eligible for hedge accounting under IAS 39, as well as the change in fair value of assets accounted for as fairvalue option
Balance Sheet
+75 bps -0.3 -1.7
+100 bps +0.0 -9.3
-75 bps +0.3 +1.7
+0.0
+0.3
-0.3
+25% 0.0 +0.2 +1.5
-100 bps +0.0 +7.7
+0.1
+0.0
-25% -0.5 -0.1 -1.0
In Euro billion Impairments net of hedges through
Adjusted Earnings
Change 1 in fair value and Forex through
Net Income
Net unrealized capital gains through
Shareholders' Equity
Total impact in Net income (incl. Impact
through Adjusted earnings)
-0.6
P&L
Equities
Interest rates
Corporatespreads
Life & Savings
B17 | Full Year 2016 Earnings | Appendices | February 23, 2017
LIFE & SAVINGS
REVENUES, NEW BUSINESS VOLUMES AND PROFITABILITY
UNDERLYING EARNINGS MARGIN ANALYSIS
UNDERLYING EARNINGS MARGIN ANALYSIS BY BUSINESS
FOCUS ON THE US
Page B18
Page B19
Page B25
Page B31
1
2
3
4
B18 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Revenues and net inflows
In Euro billion
Total: Euro 60.3 billion
14.3
1.38.5
17.0
19.1
FY16 L&S revenues by region
EMEA-LATAM and other1
-8%
Asia (incl. Japan)+11% Europe
(excl. France)2
-6%
France+6%
L&S net inflows
Changes are on a comparable basis
US+4%
1
1. EMEA-LATAM: Greece, Luxembourg, Morocco, Mexico, Turkey, Colombia, Nigeria,Poland, Czech Republic, Slovakia, AXA Life Invest Services, AXA CorporateSolutions Life Reinsurance, AXA Global Life and Architas
2. Europe (excl. France): Germany, Switzerland, Belgium, Italy and Spain
i. 2015 figures were restated to take into account the reclassification at 1H16 of non-GMxBVariable Annuity products (“Structured Capital Strategies”) in the US from G/A Savings to Unit-Linked, to align with the classification for APE and NBV.ii. G/A Savings products which, at inception, create more AFR than the economic capital theyconsume.
In Euro billionFY15
restated FY16
France +3.1 +3.5
Europe (excl. France) +0.6 -2.9
United States 0.0 +0.1
Asia (incl. Japan) +2.6 +3.4
EMEA-LATAM +0.4 +0.3
Other +0.2 +0.1
Total +6.9 +4.4
of which mature markets +4.5 +2.3
of which emerging markets +2.5 +2.2
In Euro billionFY15
restatedFY16
Protection & Health +6.0 +5.1
G/A Savingsi -3.4 -3.0
o/w capital light ii -0.4 +3.6
o/w traditional G/A -3.0 -6.6
Unit-Linked +3.9 +1.3
Mutual funds & other +0.4 +1.0
Total +6.9 +4.4
Net flows by country/region
Net flows by business
B19 | Full Year 2016 Earnings | Appendices | February 23, 2017
FY16Comp.
Change1 FY16Comp.
Change1
Underlying earnings +2%Euro 3,507 million
Tax3 804 -16%
Minority interest 76 -27%
UE from associates 178 +28%
Pre-tax underlying earnings -2%Euro 4,388 million
Technical margin 1,498 +167% VBI amortization 169 +10%
Margin on assets 5,689 -4% Admin. Expenses 3,052 +1%
+16%Margin on revenues2 4,989 -2% Acquisition expenses 4,745
+ +
-
-
L&S | Underlying Earnings margin analysis
In Euro million
Gross Margin Expenses
In Euro million
1. Changes are at constant forex and excluding Genworth and Portugal2. Life & Savings gross written premiums and mutual fund sales3. Tax rate decreased from 21% in FY15 to 18% in FY16 mainly due to higher positive tax one-off which amounted to Euro 193 million vs. Euro 158 million for FY15 restated (Euro 202
million in FY15 reported)
2
B20 | Full Year 2016 Earnings | Appendices | February 23, 2017
-0.1 pt-0.3 pt business mix
Detail by product +0.3 pt country mix
Protection & Health: 14.2%G/A Savings: 2.0%Unit-Linked: 2.6%Mutual funds & other: 3.2%
Euro 4,989 million +1%
+2%
Margin on revenues1
Life & Savings revenues1
Euro 60,391 million
Average margin on L&S revenues1
8.3%
x
L&S | Margin Analysis
Details of margin on revenuesMargin on revenues
Changes are on a comparable basis
1. Life & Savings gross written premiums and mutual fund fees
2
* Or -2% on a constant forex basis which includes a reclassification from margin on revenues to technical margin, mainly in Japan
*
B21 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Margin Analysis
Details of margin on Unit-Linked assetsUnit‐Linked management fees
Changes are on a comparable basis
2
1. Including other fees (mainly mutual fund and brokers fees) of Euro 416 million (-2% vs. FY15)
*
* Excludes net flows from SCS products in the US
Euro 2,604 million -3%
Euro 5,689 million -4% 0%
Euro 2,669 million -4%
Average management fees on Unit-Linked reserves
-6 bps
Unit-Linked management fees-4 bps business mix-2 bps country mix
160 bps
Margin on assets1 Unit-Linked average reserves
Euro 163 billion
General Account investment marginIn Euro billion
Reserves as of Jan. 1, 2016Scope (restatement of UK)Opening reserves restatedNet flowsMarketForexReserves as of December 31, 2016
195-28168-1+7+3176
+
x
B22 | Full Year 2016 Earnings | Appendices | February 23, 2017
Euro 2,604 million -3%
Euro 5,689 million -4%
+2%
377+5+6+5-1
393
Reserves as of Jan. 1, 2016Net flowsMarketForexScopeReserves as of December 31, 2016
Unit-Linked management fees
Margin on assets1 Average management fees on general account reserves
-5 bps
General Account investment margin
-5 bps business mix0 bp country mix
Euro 2,669 million -4% General Account average reserves
Euro 363 billion
In Euro billion
73 bps
+
x
L&S | Margin Analysis
Details of margin on General Account assetsInvestment margin
Changes are on a comparable basis
2
1. Including other fees (mainly mutual fund and brokers fees) of Euro 416 million (-2% vs. FY15)
*
* Includes net flows from SCS products in the US
B23 | Full Year 2016 Earnings | Appendices | February 23, 2017
Euro 1,684 million -10%
Euro 1,498 million +108%
Euro -186 million +83%In Euro billion
o/w basis -41
o/w volatility (equity and interest rates) -40
o/w interest rates, credit spreads and other -183
o/w model and assumption changes 78
Mortality & morbidity margin and other1
Technical margin
GMxB Variable Annuity margin
+
L&S | Margin Analysis
Details of technical marginTechnical margin
Changes are on a comparable basis
1. Claims paid, maturities and surrenders
2
* Or +167% on a constant forex basis which includes a reclassification from margin on revenues to technical margin, mainly in Japan
*
B24 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Margin Analysis
Focus on gross technical margin
Euro 11 million net Underlying Earnings impact
2
In Euro million
FY15restated FY16
In Euro million
Gross GMxB Variable Annuity technical margin (pre-tax, pre-DAC)
-10%
FY16
1,684
FY15restated
1,609
-186
-1,080
Gross mortality, morbidity & surrender margin (pre-tax)
Changes are on a comparable basis
FY16 GMxB VA technical margin (pre-tax, pre-DAC) evolution mainly explained by:• Higher GMxB margin in the US mostly from an improved hedge
margin and the non-repeat of 2015 reserve strengthening• Non-repeat of exceptional costs in Germany following the
implementation of a new hedging strategy in FY15
FY16 mortality, morbidity and surrender margin evolution mainly explained by:• Lower prior year reserve development and non-repeat of
assumptions change in Protection in France (Euro -0.3 billion)• Higher mortality margin in the US, Japan, Germany and Mexico
B25 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Underlying Earnings by business3
Changes are on comparable basis for pre-tax earnings by business and on constant forex excluding Genworth and Portugal for post-tax earnings
Euro million FY15restated FY16 % change
Protection & Health 2,496 2,415 -5%
G/A Savings 822 848 +2%
Unit-Linked 998 986 -2%
Mutual funds & Other 98 139 +3%
Pre-tax Underlying Earnings 4,413 4,388 -2%
Tax and Minority interest -1,038 -881
Underlying Earnings 3,375 3,507 +2%
B26 | Full Year 2016 Earnings | Appendices | February 23, 2017
Protection & Health G/A savings Unit-Linked Mutual Funds
& Other
8%of GWP
73 bpsof avg. G/A reserves
160 bpsof avg. UL reserves
Technical Margin & Other 1,590 73 -142 393
Gross margin 6,943 1,877 2,803 552 12,176
Admin. Exp. & Other -1,430 -582 -909 -123 -3,043
Acquistion expenses -3,099 -448 -908 -290 -4,745
Pre-tax UE 2,415 848 986 139 4,388
Management fees 189 2,415
Margin on revenues 4,264 262 373 90
Investment margin 901 1,543 157 68
L&S | FY16 Margin analysis by business
Main profit drivers
3
In Euro million
1
1. Mainly other fees (mainly mutual fund and brokers fees)
B27 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Margin Analysis by business
Protection & Health1
3
Technical result Unit-Linked management fees Net investment marginIn Euro million
1. From FY16, Unit-Linked Protection with Savings products have been reclassified in Protection & Health (please refer to page B32 for more information)
FY16 Comp.Change FY16 Comp.
Change FY16 Comp.Change
Protection & Health average G/A reserves
175,141 +3%
Protection & Health Combined ratio (in %)
96.1% +0.4 pt UL average management fees
122 bps -12 bps Protection & Health investment spread
Protection & Health GWP
29,966 +3% Protection & Healthaverage UL reserves
15,529 -1%
51 bps -5 bps
Net technical result 1,176 -6% Unit-Linked Management fees 189 -10% Investment margin 901 -7%
UE from associates 150 +21%
Pre-tax underlying earnings-5%
Euro 2,415 million
x x
+
+
x
B28 | Full Year 2016 Earnings | Appendices | February 23, 2017
Combined ratio
L&S | Margin Analysis by business
Protection & Health – Details on Combined Ratio
1. Expense ratio includes VBI amortization
80.5%Loss ratio 81.0%
Expense ratio
+0.4 pt
FY16
96.1%
15.6%
FY15restated
95.9%
14.9%
3
Changes are on a comparable basis
Loss ratio deteriorated by 0.2 point:
Lower prior year reserve development and non-repeat of assumptions change in Protection inFrance (Euro -0.3 billion)
Higher technical margin combined with higherfees and revenues in Germany and Japan
Higher fees and revenues in the US (more thanoffset by DAC amortization)
Expense ratio1
Loss ratio
Expense ratio deteriorated by 0.2 point:
Higher DAC amortization in the US (partly offsetin fees and revenues)
Lower administrative expenses andcommissions, notably in France and the US
+
-
-
+
+
-0.5 pt excluding exceptionalson French Protection
B29 | Full Year 2016 Earnings | Appendices | February 23, 2017
FY16 Comp.Change FY16 Comp.
Change
FY16
-4 bps
G/A Savings Gross revenues
13,096 +6% G/A Savings Average reserves
188,347 +2%
Margin on G/A Savings revenues
2.0% -0.7 pt G/A Savings Investment spread
82 bps
Comp.Change
Margin on revenues 262 -20% Investment margin 1,543 -2% Technical margin & Other 73 +14%
Gross margin -5%Euro 1,877 million
Acquisition costs 448 -18% Administrative expenses & Other
582 -2%
Pre-tax underlying earnings +2%Euro 848 million
x x
+
-
In Euro million
L&S | Margin Analysis by business
G/A Savings
3
Lower Unearned Revenues Reserves amortization offset by lower DAC amortization, both due to the change in interest rates assumptions (mainly in France)
B30 | Full Year 2016 Earnings | Appendices | February 23, 2017
In Euro million
L&S | Margin Analysis by business
Unit-Linked
3
FY16 Comp.change FY16 Comp.
change
FY16
-186 +83%
-6 bps
Unit-Linked Gross revenues
14,549 -9% Unit-Linked Average reserves
147,198 +1%
Average margin on Unit-Linked revenues 2.6% -0.5 pt UL average
Management fees 164 bps
Gross margin +27%Euro 2,803 million
Comp.change
Margin on revenues 373 -25% Unit-Linked Management fees 2,415 -3% Technical
margin & Other -142 +85%
Administrative expenses & Other
909 +5%
o/w GMxB VA margin
Investment margin 157 -10%
Pre-tax underlying earnings -2%Euro 986 million
Acquisition costs 908 +175%
x x
+
-
B31 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Focus on the US4
In Euro million, net of DAC and tax1 FY13 FY14 FY15 FY16
Total Variable Annuity base fees & other, less expenses
338 2962 381 329
GMxB hedge margin -50 -74 -13 23o/w Basis -1 -26 -12 -4
o/w Volatility -15 -7 -3 -7
o/w Interest rates, credit spreads & other -33 -41 3 34
Total reserve strengthening 54 -4 -93 -3o/w lapse experience / assumptions 0 0 -52 0
o/w other policyholder behavior 0 0 -85 0
o/w management actions including premium suspension, buyout program & model refinements/ assumptions
54 -4 45 -3
Variable Annuity GMxB Underlying Earnings 342 2182 275 349
1. Notional tax rate of 35%.2. Negatively affected by a new risk-based allocation of investment margin among products implemented in the US starting FY14, with zero impact on total US Life & Savings Underlying
Earnings. Based on this new methodology, the amount reallocated to other products would have been Euro -35 million in FY13.3. New Non GMxB Variable Annuity includes: Investment Edge and Structured Capital Strategies.4. FY15 restated: reclassification of AXA Liabilities Managers Accident & Health from the International Insurance segment into the United States Life & Savings operations.
In Euro million
905760
559834
FY16FY15restated4
FY14FY13
48%
FY16 30% 22%
31% 12%
15%
16%10% 2%20%
10%FY15 19% 25%
15%FY08 22%
2%
New Non-GMxB VA3
Fixed rate GMxB VA
Floating rate GMxB VA
Retirement Plan Services Non-GMxB VA
Life
Mutual Funds & Other
US Variable Annuity GMxB Underlying Earnings
US Life & Savings Underlying Earnings US Life & Savings APE
Increasing contribution of VA GMxB to
Underlying Earnings
Positive GMxBhedge margin
B32 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S | Reclassification of Unit-Linked Protection with Savings to Protection & Health
FY151
Unit-Linked Protection with
Savings products
FY15restated
Protection & Health 2,645 380 3,025Unit-Linked 2,217 -380 1,837
Protection & Health 27,243 1,932 29,176Unit-Linked 17,942 -1,932 16,010
Protection & Health 5.8 0.2 6.0Unit-Linked 4.1 -0.2 3.9
Protection & Health 51.6% +1 pt 52.4%Unit-Linked 39.0% -4 pts 35.0%
Protection & Health 0 16,530 16,530Unit-Linked 158,156 -16,530 141,626
Protection & Health 2,248 248 2,496Unit-Linked 1,246 -248 998
Underlying earnings pre-tax
Key performance indicator(in Euro million, unless other specified)
Unit-Linked average reserves
APE
Gross revenues
Net flows2
(in Euro billion)
NBV margin (%)
1. FY15 restated for the sale of UK Life & Savings operations2. 2015 figures were restated to take into account the reclassification at 1H16 of non-GMxB Variable Annuity products (“Structured Capital Strategies”) in the US
from G/A Savings to Unit-Linked, to align with the classification for APE and NBV.
Property & Casualty
B34 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C | Revenues and net new contracts
FY16 P&C revenues by markets FY16 P&C personal net new contracts
In thousands
Mature markets78%
Emerging markets14%
Total: Euro 35.6 billion
+212
-534
FY16FY15
Positive new business sales in motor business in Malaysia,partly offset by selective underwriting in Turkey and inFrance partially due to the Hamon law.
Direct8%
Of which:+366 in Direct-392 in Mature-508 in Emerging
Of which:+82 in Direct+76 in Mature+54 in Emerging
B35 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C | Underlying Earnings analysis
Net technical result Net investment incomeIn Euro million In Euro million
Changes are on a comparable basis for activity indicators (constant Forex, scope and methodology). Changes are on a constant exchange rate basis and excluding Genworth and Portugal for earnings
FY16 Change
1. Combined ratio calculated based on gross earned premiums2. Technical result net of expenses3. Net of interests credited to P&C reserves relating to annuities. Gross asset yield was 3.4%4. Tax rate: 26% in FY16 vs. 30% in FY15 (includes a reduction in tax rate in France from 38% to 34.43%)
FY16 Change
Minority interest -51 +28%
Underlying earnings Euro 2,514 million +2%
0%
UE from associates 48 +85%
Pre-tax underlying earnings Euro 3,479 million -3%
Tax4 -914 -15%
Net technical result2 1,230 -10% Net investment income 2,202
-0.2 pt
Revenues 35,604 +3% Average P&C assets 72,615 +6%
Combined ratio1 (in %) 96.5% +0.5 pt Average Asset Yield3 3.0%x
++
-
x
B36 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C | Details on Combined Ratio
69.6%
96.2%
FY15 restated
25.7%
FY16
96.5%
70.5%
26.9%
+0.5 pt
ExpenseRatio
LossRatio
Combined ratio Expense ratio roll-forward
Loss ratio roll-forward
Change a constant exchange rate basis and excluding Genworth and Portugal for earnings
-0.1 pt
FY15 restated
70.5%
Current accident
year
69.6%
Prior year reserve dev.
-0.2 pt
Nat Cat
+0.3 pt
FY16
-0.9 pt
Administrative
25.7%
FY15 restated
+0.6 pt
Acquisition
8.7% 8.9%
17.0% 18.1%
26.9%
FY16
+ 0.1 pt
+0.5 pt
B37 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C | Details on current year loss ratios
Personal Motor Personal non Motor
Total P&CTotal Commercial linesincl. Construction & Work. Comp.
1. Other includes opening adjustments, changes in mix, claims handling costs, reinsurance impact excl. Nat Cat, other changes in reserves, Forex and scope (excluding Genworthand Portugal)
FY16 CY Loss Ratio
75.0%
Other1
+1.3pts
Frequency & Severity
+1.9pts
Price effect
-4.1pts
Nat Cat
0.0pt
FY15 CY Loss Ratio
75.9%
FY16 CY Loss Ratio
62.6%
Other1
+0.3pt
Frequency & Severity
+1.5pts
Price effect
-1.2pts
Nat Cat
-0.1pt
FY15 CY Loss Ratio
62.1%
FY16 CY Loss Ratio
72.4%
Other1
-2.3pts
Frequency & Severity
+1.6pts
Price effect
-1.0pts
Nat Cat
-0.5pt
FY15 CY Loss Ratio
74.6%
FY16 CY Loss Ratio
70.8%
Other1
-0.6pts
Frequency & Severity
+1.6pts
Price effect
-1.9pts
Nat Cat
-0.2pt
FY15 CY Loss Ratio
71.9%
o/w Severity +2.3ptso/w Frequency -0.7pt
o/w Turkey-2.3 pts
o/w Turkey+1.6 pts
B38 | Full Year 2016 Earnings | Appendices | February 23, 2017
P&C | Focus on reserve developments
Prior year reserve development level(in % of gross earned premiums)
Reserving ratio (Net technical reserves/Net earned premiums)
FY16**
1.2%
1H16
2.1%
FY15*
1.4%
1H15
1.8%
FY14
0.6%
1H14
1.3%
FY13
1.2%
1H13
1.8%
FY12
1.2%
1H12
2.1%
FY11
1.7%
1H11
2.0%
FY10
3.1%
1H10
4.5%
FY09
5.4%
1H09
6.0%
FY08
5.4%
FY07
2.7%
FY06
1.4%
FY05
0.9%
FY161H16
198%
FY15*
194%
1H15
199%
FY14
188%
1H14
199%
FY13
185%
1H13
195%
FY12
186%
1H12
195%
FY11
187%
1H11
196%
FY10
186%
1H10
199%
FY09
187%
1H09
198%
FY08
187%
FY07
194%
FY06
186%
FY05
193% 192%
Information related to FY13 was restated for the retrospective application of the new IFRS standards on consolidation. FY04 to FY12 figures were not adjusted for this changeNote: FY04 to FY09 figures do not exclude Canadian operations
*FY15 figures have been restated to include the reclassification of International Insurance activity in the Property & Casualty segment**FY16 figures include the reclassification of International Insurance activity in the Property & Casualty segment
Health
B40 | Full Year 2016 Earnings | Appendices | February 23, 2017
Health | Revenues
FY16 Health revenues FY16 Health revenues by country
In Euro billion
France28%
UK15%
Japan12%
EMEA-LATAM9%
Changes are on a comparable basis
+4%
FY16
11,959
FY15 restated
12,010
In Euro million
Germany24%
Asia6%
Others1
5%
1. Other includes Belgium, Italy, Spain, the US, Direct and AXA Assistance
-0.2pt
FY16
94.9%
FY15 restated
95.1%
Combined ratio Euro 12.0 billion
Asset Management
B42 | Full Year 2016 Earnings | Appendices | February 23, 2017
ASSET MANAGEMENT | Underlying Earnings
Details of Asset Management margin analysis
Margin1 Expenses1
In Euro million In Euro millionFY16 Change2 FY16 Change2
1. Margin and expenses are calculated gross of intercompany eliminations to help reconcile with disclosure on page 20 of FY16 Financial Supplement.
2. Changes are on a comparable basis for activity indicators (constant Forex, scope and methodology), and at constant Forex for earnings
3. Or Euro 3,261 million net of intercompany eliminations4. Tax rate increased to 34% in FY16 vs. 29% at FY15
3
+15%
Minority int.& other
211 -6%
Underlying earningsEuro 416 million -8%
316
Pre-tax underlying earningsEuro 943 million +1%
Tax4
-13%
Distribution revenues 686 -10%
Investment result -22 +78% Distribution expenses 674
-1%Asset Management fees 3,501 -1% Asset Managementexpenses
2,547
+ -
-
B43 | Full Year 2016 Earnings | Appendices | February 23, 2017
ASSET MANAGEMENT | Underlying Earnings
Details on Asset Management revenues
Changes are on a comparable basis1. Average AUM for AXA IM is calculated excluding the contribution from joint ventures
1
31 bps 0 bps
Euro 3,261 million -2%
o/w performance fees Euro 78 million (11%)
Euro 1,059 billion -1%
In Euro billion
AUM at FY15 1,124Net inflows +45
o/w AllianceBernstein -12o/w AXA IM +56
Market +44Forex +6Scope & other -15AUM at FY16 1,203
Average management fees on Average Assets under Management
Assets Management fees
Average Assets under Management1o/w research services fees Euro 434 million (-3%)
x
Balance Sheet
B45 | Full Year 2016 Earnings | Appendices | February 23, 2017
BALANCE SHEET
GENERAL ACCOUNT INVESTED ASSETS B451.1 Government bonds and related B461.2 Corporate bonds B491.3 Asset backed securities B531.4 Equity B541.5 Real estate B561.6 Hedge Funds B571.7 Private Equity B581.8 Mortgage loans B59
FOCUS ON NET UNREALIZED CAPITAL GAINS B60
ASSET LIABILITY MANAGEMENT B61
NET FINANCIAL DEBT AND ADJUSTED ROE B63
SOLVENCY II B65
LIFE & SAVINGS VALUE B68
LIFE & SAVINGS IRR AND OPERATING FREE CASH FLOWS B69
1
234
67
5
B46 | Full Year 2016 Earnings | Appendices | February 23, 2017
AXAWinterthur
Changes in asset mix
Yields: positive impact linked to decrease in interest rates on fixed income assets
Forex: positive impact from the depreciation of Euro against all major currencies, except GBP
1. Mortgage loans & other include residential loans (Euro 12 billion), commercial & agricultural loans (Euro 21 billion) and Agency Pools (Euro 1 billion)2. Mainly Private Equity and Hedge Funds3. FY16 invested assets referenced in page 52 of the financial supplement are Euro 788 billion, which include notably Euro 175 billion of Unit-linked assets and Euro 35
billion related to the banking segment
GENERAL ACCOUNT INVESTED ASSETS1
Invested assets (100%) FY15in Euro billion Published
Fixed income 457 83% 485 83%
o/w Govies and related 225 41% 236 40%
o/w Corporate bonds 190 34% 202 35%
o/w Asset backed securities 10 2% 13 2%
o/w Mortgage loans & other 1 31 6% 34 6%
Cash 24 4% 23 4%
Listed equities 20 4% 19 3%
Real Estate 28 5% 30 5%
Alternative investments2 18 3% 20 3%
Policy loans 6 1% 6 1%
Total Insurance Invested Assets3 552 100% 583 100%
%% FY16
B47 | Full Year 2016 Earnings | Appendices | February 23, 2017
GOVERNMENT BONDS AND RELATED1.1
Supranational Institutions4%
Spain6%
Switzerland6%
Other7%
Belgium8%
Austria3%
Italy10%
P&C10%
L&S90%
Japan13%
France20%
As of December 31, 2016
Germany10%US
9%
Ireland1%
In Euro billion
Netherlands2%
FY16
40.9
FY15
37.4
1. Gross of tax and policyholders’ participation
Breakdown by geography Breakdown by segment
Gross1 unrealized capital gains and losses
Euro 236 billion
B48 | Full Year 2016 Earnings | Appendices | February 23, 2017
GOVERNMENT BONDS AND RELATEDFOCUS ON EXPOSURE TO EUROZONE PERIPHERAL COUNTRIES
1.1
Exposure by issuer
Gross book value Gross market value Gross book value Gross market value
December 31, 2015 December 31, 2015 December 31, 2016 December 31, 2016
Italy 18.5 22.6 20.6 23.0
Spain 12.1 14.6 11.9 15.0
Ireland 3.2 3.6 2.7 3.3
Portugal 0.4 0.5 0.4 0.4
Greece 0 0 0.0 0.0
TOTAL 34.1 41.4 35.6 41.7
in Euro billion
B49 | Full Year 2016 Earnings | Appendices | February 23, 2017
Energy6%
CORPORATE BONDS1.2
Financials5%
Utilities8%
Basic materials4%
Industrials8%
P&C17%
L&S83%Consumer cyclical
6% Banks37%
As of December 31, 2016
Consumernon-cyclical
13%
In Euro billion
Other5%
FY16
8.0
FY15
7.8
1. Gross of tax and policyholders’ participation
Breakdown by industry Breakdown by segment
Gross1 unrealized capital gains and losses
Communications8%
Euro 202 billion
B50 | Full Year 2016 Earnings | Appendices | February 23, 2017
CORPORATE BONDS BREAKDOWN BY ENTITY AND RATING(including CDS)
1.2
P = Participating NP = Non-participating
1. Including Asia (excl. Japan), Direct P&C excluding Direct Japan, EMEA-LATAM, Italy, Spain and UK2. Not rated by external rating agencies. Under AXA’s internal ratings: AAA: Euro 0.3 billion / AA: Euro 1.4 billion /
A: Euro 3.0 billion / BBB: Euro 4.7 billion / Below investment grade: Euro 2.9 billion
In Euro billion
As of December 31, 2016 P NP P NP P NP P NP P NP P NP P NP P NP
AAA 2.5 1.1 0.0 0.3 0.1 0.1 8.4 1.1 6.4 1.0 - 0.8 0.2 0.3 17.7 4.7AA 4.3 2.0 0.5 3.4 0.6 0.6 4.8 0.6 2.1 0.5 - 2.5 2.0 1.4 14.3 10.8A 10.9 4.9 1.7 11.0 1.5 1.3 5.5 1.5 7.4 1.1 - 5.7 6.1 4.1 33.1 29.6BBB 12.7 6.3 1.1 11.7 1.5 2.2 5.7 1.8 9.6 1.5 - 3.1 5.1 4.2 35.7 30.7Below Investment Grade 2.5 1.8 0.1 1.0 0.0 0.8 1.8 0.6 1.9 0.4 - 0.5 0.6 1.0 7.0 6.1
Non rated2 1.3 0.8 0.0 0.3 0.1 0.8 1.3 0.4 1.6 0.4 - 1.1 1.7 2.3 6.2 6.1
Total 34.3 16.9 3.5 27.6 3.7 5.9 27.6 6.1 29.1 4.8 - 13.6 15.7 13.3 113.9 88.1
Japan Other1 TotalFrance US Belgium Germany Switzerland
B51 | Full Year 2016 Earnings | Appendices | February 23, 2017
FOCUS ON BANKING CORPORATE BONDS
1. Banking Corporate bonds not rated by external rating agencies have been reallocated under AXA’s internal rating: AAA: Euro 0.1 billion / AA: Euro 1.0 billion / A: Euro 0.9 billion / BBB: Euro 2.1 billion / BIG: Euro 0.7 billion
2. More than 30 countries
1.2
As of December 31, 2016
Gross market value
in Euro billion Secured Non secured Lower Tier 2 Upper Tier 2 Tier 1 Preferred
By rating:AAA 20.9 0.7 0.0 0.0 0.0 0.0 21.6
AA 6.7 7.8 0.2 0.0 0.0 0.0 14.7
A 3.2 19.8 2.0 0.0 0.0 0.0 24.9
BBB 0.6 7.8 3.5 0.2 0.0 0.0 12.2BIG1 0.2 0.6 0.5 0.2 0.1 0.0 1.6
Total 31.5 36.8 6.2 0.4 0.1 0.0 75.0
By Country:Germany 7.7 1.3 0.7 0.4 0.0 0.0 10.0
France 4.3 3.4 2.4 0.0 0.0 0.0 10.2
United States 0.2 12.6 0.5 0.0 0.0 0.0 13.3
Netherlands 1.1 2.6 0.4 0.0 0.0 0.0 4.0
UK 1.4 2.8 0.7 0.0 0.0 0.0 4.9
Spain 2.5 1.1 0.5 0.0 0.1 0.0 4.1
Australia 1.7 2.4 0.5 0.0 0.0 0.0 4.6
Italy 0.9 1.3 0.0 0.0 0.0 0.0 2.3
Switzerland 7.3 2.2 0.0 0.0 0.0 0.0 9.5
Sweden 0.3 1.7 0.2 0.0 0.0 0.0 2.3
Austria 0.4 0.1 0.0 0.0 0.0 0.0 0.5
Norway 0.5 0.3 0.0 0.0 0.0 0.0 0.8
Other2 3.2 5.2 0.2 0.0 0.0 0.0 8.6
Total 31.5 36.8 6.2 0.4 0.1 0.0 75.0
Senior Debt Subordinated Debt Total
B52 | Full Year 2016 Earnings | Appendices | February 23, 2017
Representstotal market value of
Euro 48 million
CDS mainly used as alternative to investment grade corporate bonds• Net CDS exposure excluding NBT strategy mainly corresponds to an “overlay” strategy
(synthetically replicate corporate bonds by selling CDS on top of government bonds to enhance return)
• NBT strategy: buy credit derivatives on corporate names to form negative basis tradeCDS also used to get liquid exposure to local sovereign risks
FOCUS ON CDS1.2
Government bonds
and related
Net CDS exposure excl. NBT strategy NBT strategy Total Total
Net notional as of Net notional as of Net notional as of Net notional as of
December 31, 2016 December 31, 2016 December 31, 2016 December 31, 2016AAA 0.0 0.0 0.0 1.8
AA 1.7 0.0 1.6 -1.7
A 3.5 -0.1 3.3 0.4
BBB 3.4 -0.7 2.7 0.0
Below investment grade 0.0 -0.3 -0.3 0.0
Non rated 1.9 -0.3 1.6 0.0
Total 10.4 -1.5 8.9 0.4
Corporate bonds
in Euro billion
B53 | Full Year 2016 Earnings | Appendices | February 23, 2017
ASSET BACKED SECURITIES1.3
Prime Residential3%
Commercial MBS4%
CDO1%
Consumer ABS2
1%
CLO86%
As of December 31, 2016
1. Including debt and equity tranches of ABS2. Mainly consumer loan ABS (plus some leases and operating ABS assets)
Breakdown by asset type1 Breakdown by rating
Below investment grade6%
BBB2%
A10%
AAA56%
AA23%
Non rated/Equity3%
Mortgage-backedOther asset-backed
US Subprime, Alt-A & NC RMBS
5%
Euro 13 billion
B54 | Full Year 2016 Earnings | Appendices | February 23, 2017
France22%
LISTED EQUITY PORTFOLIO OVERVIEW1.4
Other Eurozonecountries9%
Switzerland5%
UK4%
Rest of the World15%
Belgium6%
P&C22%
L&S78%
Holdings1%
Japan7%
US23%
Germany8%
In Euro billion
FY16
3.5
FY15
3.4
1. Gross of tax and policyholders’ participation
Breakdown by geography Breakdown by segment
Gross1 unrealized capital gains and losses
As of December 31, 2016
Euro 19 billion
B55 | Full Year 2016 Earnings | Appendices | February 23, 2017
SHAREHOLDERS’ EXPOSURE TO LISTED EQUITY1.4
FY15
8
20
Gross nominal 100%
Group share net of hedge,
tax & PB
FY16
7
19
Gross nominal 100%
Group share net of hedge,
tax & PB
Estimated shareholders’ exposure to listed equity(in Euro billion)
B56 | Full Year 2016 Earnings | Appendices | February 23, 2017
Japan1%
1.5
UK6%
Germany9%
Other Eurozone countries7%
Belgium10%
France28%
Switzerland37%
As of December 31, 2016
Breakdown by geography
REAL ESTATE INVESTMENTSDefensive portfolio with good performance over the long term
1. Representing Euro 3.8 billion of unrealized gains off balance sheet, net of tax and PB2. The assets in scope exclude those held directly by the French Mutual funds and the non-Main
Fund unit linked holdings, as well as CRE loans.
P&C19%
L&S81%
Breakdown by segment
Breakdown by type and geography
Portfolio Yield from Rental Income ~ 3.8%
Market value1,2
Euro 30 billion
US2%
France Switzerland Germany Belgium Others
Office 38% 42% 43% 73% 57%
Residential 13% 49% 5% 0% 5%
Retail 36% 0% 16% 22% 18%
Others 13% 9% 36% 5% 20%
B57 | Full Year 2016 Earnings | Appendices | February 23, 2017
HEDGE FUND INVESTMENTSDiversified portfolio of hedge funds
1.6
AXA portfolio return drivers
Alternative Credit : 9 managers
Well diversified exposure
Alternative Credit program
67%
Multi-Strategy program33%
Multi-Strategy : 19 managers
Short dated carry57%Deep value credit
14%
Real asset cash flow11%
Relative value credit17%
• Alternative Credit program: 2016 performance for 2016 wherecarry-driven strategies performed as expected and the deepvalue bucket exceeded expectations.
• Multi-Strategy program: focus on low volatility and uncorrelatedreturns. Annual performance exceeded benchmarks for hedgefund industry.
As of December 31, 2016
Source: AXA IM
EQMN –Discretionary
18%
EQMN -Systematic
10%
Distressed & credit11%Relative value &
multi-strategy25%
Merger Arbitration3%
Global macro14%
Fixed income arbitrage19%
Market valueEuro 6 billion
B58 | Full Year 2016 Earnings | Appendices | February 23, 2017
Europe61%
1.7
US31%
Other6%
As of December 31, 2016
Breakdown by geography Breakdown by expertise
Diversified portfolio
PRIVATE EQUITY INVESTMENTSDiversified portfolio built over the long run
16%Infrastructure
12%Private debt
4%Venture
68%Buy-out
Japan2%
56%Funds of funds
44%Direct
Market valueEuro 9 billion
B59 | Full Year 2016 Earnings | Appendices | February 23, 2017
MORTGAGE LOANS & OTHERLow risk mortgage loan portfolio
1.8
1. Excluding Banking operations2. Excluding Euro 1 billion of Agency pools (Mortgage-backed securities issued by US Government Sponsored Enterprises)
21%Germany
28%United States
13%
87% Residential
Commercial
74%
26%
95%
5%
51%
49%
Commercial
Agricultural
Very secured portfolio:
FY16 default rate
FY16 loan to value0.08%
54%
9%France
Residential
Commercial
35%Switzerland
Residential
Commercial
FY16 market value by entity1
Switzerland35%
Germany21%
France9%
Other7%
US28%
As of December 31, 2016
Market value2
Euro 33 billion
B60 | Full Year 2016 Earnings | Appendices | February 23, 2017
FOCUS ON NET UNREALIZED CAPITAL GAINS2
1. Including ABS, alternative investments, other assets, minorities and equity methods
Balance sheet net unrealized capital gains
Off balance sheet net unrealized capital gains
In Euro billion In Euro billion
FY16
14.6
11.2
2.01.6
FY15
12.8
9.5
1.61.7
Government bondsand related
Corporate bonds
Equities & Other
FY16
4.2
FY15
5.31
Net unrealized capital gains on Government bonds and related by issuer
2.2
Germany
0.9
France
3.2
Other
0.2
Eurozone peripheral countries
0.9
Japan
2.9
Switzerland
0.7
Belgium
B61 | Full Year 2016 Earnings | Appendices | February 23, 2017
Inforce business New business
Products sold in combination with higher margin Unit-Linked business (hybrid2 sales)
FY16
L&S average guaranteed rate
Yield on total L&S asset base
Spread above guaranteed rates
Spread above guaranteed rate
FY16
L&S average guaranteed rate
Reinvestment yield on L&S fixed income assets
+140 bps
1.9%
3.3% +140bps
0.4%
1.8%
Guidance: 65-75 bps
Resilient investment margin1
FY16
73 bps
FY15
79 bps
Significant buffer to cover guarantees and to manage crediting rates to preserve investment margin
Average reserves of Euro 363 billion
ASSET & LIABILITY MANAGEMENT (1/2)Life & Savings General Account investment spreads and margin
All notes are on pages A51 of this document
3
B62 | Full Year 2016 Earnings | Appendices | February 23, 2017
3 ASSET & LIABILITY MANAGEMENT (2/2)L&S General Account investment spreads for main entities
140bps
2.8%4.2%
Belgium
AXA MPS
L&S average guaranteed rate
Reinvestment yield on L&S fixed income assets
• Average G/A reserves: Euro 24 billion• Emphasizing new hybrid products, using
G/A to develop Unit-Linked
• Average G/A reserves: Euro 12 billion• Emphasizing hybrid products and
Protection businesses
Yield on total L&S asset base
0.7%
3.8%
0.0%
1.9%
4bps
3.4%3.4%110bps
0.9%2.0%
80bps
0.9%1.7%
FY16
120bps
1.6%2.8%
1.4%
120bps
0.2%
FY16
Germany
• Average G/A reserves: Euro 60 billion• Asset portfolio with long investment
horizon and with limited reinvestments in Bunds
France • Average G/A reserves: Euro 105 billion• G/A Savings new business sales with
long term guarantees stopped in 1998
Switzerland• Average G/A reserves: Euro 58 billion• Protection components making products
very profitable
80bps
1.9%1.1%
0.3%
60bps
0.9%
310bps 190bps
New businessInforce
FY16 FY16
FY16 FY16
FY16 FY16
FY16 FY16
B63 | Full Year 2016 Earnings | Appendices | February 23, 2017
NET FINANCIAL DEBT - LONG-TERM MATURITIES
Net financial debt Contractual maturity breakdown
Economic maturity breakdown
Undated
5.1
3.0
3.4
2026-2040
3.3
0.8
2021-2025
0.3
2020
0.4
201920182017
1.8
Undated
0.91.8
0.1
2026-2040
2.00.2
4.4
0.8
2021-2025
1.01.0
1.0
0.3
2020
1.7
2019
0.3
2018
0.7
2017
0.31.8
TSDI = undated subordinated notesSubordinated debtSenior debt
TSS = undated deeply subordinated notes
4
1. Including Euro +1.3 billion of reversal of mark-to-market on interest rates derivatives in FY16 vs.Euro -0.6 billion in FY15
In Euro billion
Debtgearing 26% 26%
In Euro billion
In Euro billion
FY16
18.3
1.1
9.1
8.1
FY15
17.0
0.6
6.9
9.5
Subordinated debt1
Senior debt
Undated subordinated debt
0.1
0.1
B64 | Full Year 2016 Earnings | Appendices | February 23, 2017
ADJUSTED ROE
In Euro millionFY15
published
FY16
Adjusted earnings 6,008 6,103
Interest charges on undated debt -305 -267
Average adjusted shareholders’ equity 40,303 43,352
Adjusted ROE 14.1% 13.5%
4
B65 | Full Year 2016 Earnings | Appendices | February 23, 2017
SOLVENCY II RATIO
Required capital
Available capital
FY16
29.4
57.9
FY15
28.8
59.2
Solvency II ratio 205% 197%
FY16
197%
Subordinated debt, forex & other
-4 pts
Market impact excl. forex
-14 pts
Dividend
-10 pts
Operatingreturn
+19 pts
FY15
205%
In Euro billion
Key sensitivities
Solvency II ratio roll-forward
+3 pts
-9 pts
-1 pt
+6 pts
-7 pts
Solvency II ratio
Equity markets -25%
Corporate spreads +75bps
Interest rate -50bps
Interest rate +50bps
Ratio as of December 31, 2016
Equity markets +25%
197%
200%
188%
196%
203%
190%
5
B66 | Full Year 2016 Earnings | Appendices | February 23, 2017
SOLVENCY II REQUIRED CAPITALSPLIT BY RISK. GEOGRAPHY & BUSINESS
26%
Life & Savings
54%
Asset Management & Banking
4%Holdings & Other
16%
Property &Casualty
Operational
5%Counterparty
8%
P&C 20%
Life
25%
Market41%
3%
Asset Management & Banking
8%
UK
4%Belgium
Italy, Spain, EMEA6%
Germany8%
US9%
Switzerland
10%
Asia (incl. Japan)
13%
France17%
Holdings & Other20%
Required capital by risk
Required capital by geography
Required capital by business
5
B67 | Full Year 2016 Earnings | Appendices | February 23, 2017
SHAREHOLDERS’ EQUITY TO SOLVENCY II AFRIn Euro billion
5
71
58Available Financial
Resources(AFR)
Subordinated debt
Scope & others +1
+9
Best Estimate Liabilities +6
Intangible assets -33
Full market valueof assets +4
IFRSShareholders’ Equity1
Remove intangible assets • Goodwill (Euro -15 billion)• DAC (Euro -14 billion)• VBI and other intangibles (Euro -4 billion)
Move to Best Estimate Liabilities• Difference between IFRS reserves and Best Estimate Liabilities
(Euro +16 billion)• Market Value Margin (Euro -10 billion)
Move to full market value of assets• Real estate (Euro +3.7 billion)• Loans (Euro +0.2 billion)• Other (Euro -0.3 billion)
B68 | Full Year 2016 Earnings | Appendices | February 23, 2017
L&S AFR AND NBV- KEY SENSITIVITIES
L&S New Business Value (NBV) sensitivities
Interest rates volatility +25% 2,483
Equity markets’ volatility +25% 2,575
Equity markets -10% 2,545
Equity markets +10% 2,709
Interest rate -50 bps 2,490
Interest rate +50 bps 2,664
L&S NBV as at Dec 31, 2016 2,623
Equity markets’ volatility +25%
43.9Interest rates volatility +25%
Equity markets -10% 43.8
Equity markets +10% 46.0
44.6
Interest rate -50 bps 44.2
Interest rate +50 bps 45.3
Insurance AFR 45.1
6
In Euro billion In Euro million
+0.2 | 0%
-0.9 | -2%
+0.9 | +2%
-1.3 | -3%
-0.5 | -1%
-1.2 | -3%
+41 | +2%
-133 | -5%
+86 | +3%
-78 | -3%
-48 | -2%
-140 | -5%
L&S AFR sensitivities
B69 | Full Year 2016 Earnings | Appendices | February 23, 2017
LIFE & SAVINGS INTERNAL RATE OF RETURN (IRR) BY COUNTRY7
In Euro million APE NB IRR
FY15 restated
1,760
1,656
418
864373 313 100
560
1,171
7,376
18.4%
17.3%
4.7%
12.9%
17.0%20.0%14.5%19.1%
33.2%
25.9%
17.5%
1,767
1,656
935
418
864373 313 100
560
1,171
7,376
APE NB IRR
FY16
18.4%
17.3%
4.7%
12.9%
17.0%20.0%14.5%19.1%
33.2%
25.9%
17.5%
TBU
France 1,760 18.4% 1,824 20.2%
US 1,656 17.3% 1,732 15.7%
Japan 418 12.9% 499 13.4%
Germany 373 20.0% 382 20.4%
Switzerland 313 14.5% 301 10.7%
Belgium 100 19.1% 55 14.0%
Italy 405 26.0% 300 34.0%
Spain 84 36.0% 86 31.9%
EMEA-LATAM 148 14.8% 118 14.9%
Hong Kong 525 22.8% 536 23.0%
South East Asia, India & China 646 34.3% 754 18.7%
Total 6,464 18.9% 6,600 17.8%
B70 | Full Year 2016 Earnings | Appendices | February 23, 2017
OPERATING FREE CASH FLOW BY SEGMENT
FY16 Life & Savings FCFOperating Free Cash Flows
0%
Asset Management, Banking & Other
Property & Casualty
Life & Savings
FY16
6.2
0.5
2.7
2.9
FY15 restated
6.2
0.6
2.6
3.1
Changes are on a comparable basis
2,956
Operating Free Cash
Flow
2,945
Expected change in
required capital
-11
Expected statutory earnings
FY16 Property & Casualty FCF
Operating Free Cash
Flow
2,734
Change in required capital
-140
Earnings contribution
2,874
7
B71 | Full Year 2016 Earnings | Appendices | February 23, 2017
In Euro millionFY15restated FY16
1. L&S Operating Free Cash Flow based on Solvency II only for EEA entities
LIFE & SAVINGS OPERATING FREE CASH FLOW BY COUNTRY7
France 864 918
US 657 614
Japan 257 234
Germany 174 140
Switzerland 328 362
Belgium 211 137
Italy 117 168
Spain 56 108
EMEA-LATAM 80 48
Asia excl. Japan 280 216
Other 36 1
Total 3,060 2,945
B72 | Full Year 2016 Earnings | Appendices | February 23, 2017
Expected undiscounted cashflows from 2016 inforce1 business
In Euro billion In Euro billion
25
20
15
10
5
0>3531-3526-3021-2516-2011-156-101-5
0.0
-0.5
-1.0
1.5
1.0
2.0
0.5
-1.5
-2.0
2.5
2016
1-5 6-10 11-15 16-20 21-25 26-30 31-35
Expected undiscounted cash flowsfrom 2016 New Business
LIFE & SAVINGS FREE CASH FLOW EMERGENCE FROM INFORCE AND NEW BUSINESS
7
>35
Above cash flows are expected to be improved by inforce management initiatives of the company. in particular:• Actions to improve value of the existing book• Actions to release more capital from the existing book
Euro 22 billion undiscounted free cash flows expected to be released from 2016 inforce1 over 5 years
1. Including 2016 new business, to be released from January 1, 2017 onwards
Corporate Responsibility
B74 | Full Year 2016 Earnings | Appendices | February 23, 2017
12th overall / worldwide and 1st insurer by number of SRI funds in its capital (Ipreo, Q2 2016)
MAIN SRI RATINGS
N°2 out of 150 insurance companies
Score: 87/100
Ranked “A+” in the 2016 “Assessment Report”
(Responsible Investment strategy)
Included in the FTSE4GOOD index since 2008
Score of AAA
2016 Sector leader, Included in
Vigeo Euronext indices
Score: 85/100Percentile ranking: 95/100
Now accounts for 10% of AXA employee’s performance shares
attribution
B75 | Full Year 2016 Earnings | Appendices | February 23, 2017
“ESG + CARBON” INTEGRATION
Long-term ESG integration process: gradual and systematic integration of tangible ESG factors in AXA’s investment mandates
Development of specific measurement tools
X3 Green investments to reach Euro 3 billion by 2020.
Coal divestment: Euro 500 million, coal mining and coal-based power generation.
“Article 173” : #1 award in the “Best Investor Climate-Related Disclosures” contest
FSB TCFD Vice-Chair
First insurer to join Carbon Pricing Leadership Coalition (World Bank)
Chairmanship of the EU Commission’sHigh Level Expert Group on SustainableFinance
SECTOR GUIDELINES & EXCLUSIONS
ESG Footprint Committee: ad-hoc exclusions and/or engagement for worst ESG performers
Implementation of investment guidelines for sectors with acute environmental or social / ethical challenges
Current sector exclusions (applied to both investment and insurance business):
Controversial weapons
Coal-based energy production & coal extraction
Palm oil production
Food commodity derivatives
TobaccoIn 2016, as a responsible health insurer and investor, the AXA Group has decided to divest its tobacco industry assets, representing Euro 1.8 billion in equity and corporate bonds
IMPACT INVESTING
Two “impact investment” funds
Impact Fund 1: inclusion, health, education
Impact Fund 2: environmental & social resilience
€200M each
Creating both financial returns and positive social or environmental impacts that are actively measured
Impact KPIs examples (Fund 1): 79 million underserved customers reached; 15,8 million micro-insurance policies distributed; 1,39 million tones of CO2 emissions saved
€155M renewable energy fund managed by Ardian Investments
RESPONSIBLE INVESTMENTS STRATEGY