Sales Congress 2010 Hilton Athens 6.3.2010 Eric Kleijnen CEO
Evolution « after » 2008 financial downturn?
End of an acute phase? Possibly.
Economic recovery under way? Probably but regionally segmented. No big improvement in 2010.
Unemployment as a painful issue, probably for years.
Financial markets partially recovered but still weak / hesitating.
The real economy is thrilling Industrial production (percent change) Baltic Exchange Dry Index
AXA Group : solid results in a volatile environment Solid earnings Increased financial strength Strong rebound in dividend & Embedded Value
Underlying earnings: 3.9B€ (vs 4B€ in 2008)
Net income: 3.6B€ (vs. 0.9 B€ in 2008)
Solvency I up 44 pts to 171% (equivalent to level before crisis)
Debt gearing down 8 pts to 26% of total financial assets
Dividend up 38% to 0.55€ per share
Group Embedded Value up 49% to 13.4€ per share
Resilient business and model
Total revenues: down 3% to 90.1B€
Life & Savings: net inflows of 8.6B€
New business value up 5% to 1.1B€
AXA Group: Revenues Resilient vs. FY08 Revenues by segment 2,841 Asset Management 3,947 In Euro million FY08 International Insurance 412 Banking & Holdings 2,860 3,074 FY09 395 91,221 Revenues 90,124 P&C 26,039 26,174 L&S 57,977 57,620 +2% -25% % -2% -1% +1% -4% Mediterranean & LA region -32% -7% +13% +11% -6% +1% Changes are on a comparable basis NORCEE UK &Ireland North America France Asia-Pacific (incl. Japan) * Excluding International Insurance, Asset Management, Banking and Holdings In Euro billion Insurance revenues by region
A steady growth… 2004 2005 2006 2007 Merger with Norwich Union in the Gulf Region Acquisition of Seguro Directo Acquisition of Winterthur Acquisition of Alpha Insurance Acquisition of Minority Shareholder Joint Venture with Monte dei Paschi di Siena (MPS) Acquisition of Minority Shareholder Direct Seguros 2008 Acquisition of Minority Shareholder Acquisition of ING Seguros 2009 AXA launches a 2 B € rights issue to finance acquisition opportunities Romania Algeria Serbia 2010 Bulgaria Albania Fyrom BALKANS Green fields Azerbaijan
Current situation of Greek main economic indicators GDP: -1.2% (-2.5% anticipated in 2010) Public Deficit 12.7% of GDP in 2009 Stock Exchange +22.93% Public debt 303 B€ in 2009 or 113% of GDP Unemployment 10.6% in Nov vs. 9.5% EU average Manufacturing -7.6% Inflation 2.6% in 2009 vs. 1.4% Eu average 10 years bonds spreads 300 Private consumption -1.5% Imports -16% Exports -24.7% Residential construction -28.1% as of Nov. 2009
Greece : insurance industry
WRITTEN PREMIUMS - 3%
2009 : 2.428 B€
2008: 2.502 B€
Drop in INVESTMENT products
Compensation via PENSION (+4.22%) and GROUP policies (+14.28%)
WRITTEN PREMIUMS +4%
2009: 2.915 B€
2008: 2.809 B€
Motor TPL: + 9.05%
Property + 1.85%
Assistance + 15.45%
Greece : insurance industry
Solvency II as one of the most critical events in insurance for the next 10 years:
In force from 2012
Objective: better secure consumers through closer / tighter risk management.
Increased capital requirements in demanding financial markets.
Exposure to risk will be more expensive for shareholders and consumers.
Insurers will take risks but better care about pricing, conditions and accumulations
more discipline in markets.
Closer / more demanding supervision.
Combined ratios: increasing in Health and Motor will we hit the wall?
Impact of recent fiscal measures (as VAT) further price increases
AXA Greece’s results in a volatile environment In Euro million FY08 FY09 50/50 Combined ratio 94% 95% Gross revenues 100 110 FY10 94% 118 P&C In Euro million FY08 FY09 APE 20 15 Gross revenues 127 108 FY10 25 163 (?) NBV / APE ratio 12% 21% 25% AXA GREECE