PARIS, Aug. 5 /PRNewswire-FirstCall/ -- Earnings recovery in 1H09
versus 2H08: -- Underlying Earnings: Euro 2,116 million down 26%
yoy, up 63% sequentially -- Adjusted Earnings: Euro 1,736 million
down 50% yoy, up 327% sequentially -- Net Income: Euro 1,323
million down 38% yoy, up Euro 2,577 million sequentially
Confirmation of financial strength: -- Solvency I ratio: 133% up 6
pts vs. December 31, 2008 -- Shareholders' equity: Euro 38.8
billion up Euro 1.4 billion vs. December 31, 2008 -- Debt gearing:
31% down 3 pts vs. December 31, 2008 Overall resilient customer
base: -- Revenues: Euro 48.4 billion down 1.8% yoy (down 5.7% on a
comparable basis) -- Positive Insurance net inflows -- Assets under
Management: Euro 967 billion down 1.5% vs. December 31, 2008 Strong
management actions to weather the market turmoil: -- Focus on
profitability in Property & Casualty and Life & Savings
(Variable Annuities) through repricing measures -- Productivity
efforts in all business lines -- Risk Management actions, notably
in the US (stabilizing capital and improved Variable Annuity
hedging margin) Chairman's statement "Our confidence in AXA Group's
strategy is supported by the solid performance recorded during the
first half of 2009, as well as the efficiency of the risk
management actions undertaken to mitigate the consequences of the
crisis," said Henri de Castries Chairman of the AXA Management
Board. The insurance sector and AXA were not immune to the adverse
market environment. However, the Group demonstrated its capacity to
act quickly and to take the necessary actions in order to preserve
a solid balance sheet, manage business efficiently and maintain the
trust of our customers. Going forward, we are prepared to withstand
a further possible market downturn and we are well positioned to
benefit from a market upturn: we have not stopped investing and
focusing on our core business in a market with continuing growth
potential." All comments are on a comparable basis (constant Forex,
scope and methodology for activity indicators and constant Forex
for earnings) Revenues -- Total Revenues were down 6% to Euro
48,414 million. -- Life & Savings revenues were down 7% to Euro
30,065 million, in line with trends observed in 4Q08 and 1Q09,
mostly due to the adverse market environment. Net inflows remained
positive at Euro +5.6 billion, flat on a comparable basis versus
1H08. New Business Volume (APE(1)) was down 16% to Euro 3,111
million, with unit-linked share down from 48% to 40%. New business
margin was down 0.9 pt to 13.7%. -- Property & Casualty
revenues increased by 1% to Euro 14,919 million, driven by Personal
lines (+1%) while Commercial lines remained stable. Personal Net
New contracts amounted to +695,000. -- Asset Management revenues
were down 34% to Euro 1,503 million, due to 36% lower management
fees mainly driven by lower average assets under management (-26%),
unfavorable change in product mix, as well as the reduced
contribution from distribution fees. Net outflows amounted to Euro
-38 billion. Earnings 1H09 earnings were significantly up versus
2H08: Underlying Earnings were up 63% to Euro 2,116 million,
Adjusted Earnings were up 327% to Euro 1,736 million and Net Income
was up Euro 2,577 million to Euro 1,323 million. Compared to 1H08:
-- Underlying Earnings were down 26% to Euro 2,116 million, mainly
due to (i) lower average assets under management negatively
impacting underlying earnings in both Life & Savings (down 16%)
and Asset Management (down 42%), and (ii) combined ratio up 1.7pts
to 98.0% (mostly related to natural events) impacting underlying
earnings in Property & Casualty (down 12%). -- Adjusted
Earnings were down Euro 1,640 million (-50%) to Euro 1,736 million,
as a result of (i) Euro 714 million lower underlying earnings, (ii)
Euro 614 million lower realized capital gains (mostly on equities),
(iii) Euro 312 million higher impairments net of hedging (mostly on
equities). -- Net Income was down Euro 821 million (-38%) to Euro
1,323 million as a result of (i) Euro 1,640 million lower adjusted
earnings, partly offset by (ii) Euro 819 million lower negative
contribution from change in value of assets and derivatives net of
forex and other items, mainly due to credit spread tightening.
Balance sheet -- Group Solvency I ratio was up 6 pts (vs. December
31, 2008) to 133%, as a result of 10 pts positive impact from
underlying earnings partly offset by 4 pts adverse impact notably
from real estate and private equity asset valuations. Solvency I
surplus increased by Euro +1 billion to Euro 7 billion. Stabilizing
capital situation in the US: no capital increase expected this
year. -- Shareholders' equity was up Euro 1.4 billion (vs. December
31, 2008) to Euro 38.8 billion, as a result of (i) Euro 1.3 billion
of net income contribution, (ii) Euro 0.9 billion positive
variation in unrealized capital gains (mostly related to equities),
partly offset by (iii) Euro 0.8 billion dividend payment. Debt
gearing(2) was down 3 pts (vs. December 31, 2008) to 31% mainly as
a result of Euro 2.0 billion lower net financial debt partly due to
seasonality effect. Non-GAAP measures such as Underlying Earnings
and Adjusted Earnings are reconciled to Net Income on page 7 of
this release. AXA's 1H09 financial statements are subject to
completion of limited review by AXA's independent auditors. Notes
are on page 12 Revenues: Key figures Change ----------------------
Change Euro million, on a Scope except when reported Comp.(a) &
FX otherwise noted 1H08 1H09 basis basis Other Impact(b)
----------------- ---- ---- ----- ----- ----- -------- Life &
Savings revenues 30,826 30,065 -2.5% -7.5% +0.7pt +4.3pts Net
inflows (Euro billion) +6.2 +5.6 APE (Group share) 3,611 3,111
-13.9% -16.3% +1.1pts +1.3pts NBV (c) (Group share) 505 427 -15.3%
-22.0% +1.0pt +5.7pts NBV to APE margin (Group share) 14.0% 13.7%
-0.2pt -0.9pt ------------------------ ---- ---- ------ ------
Property & Casualty revenues 14,519 14,919 +2.8% +0.8% +3.8pts
-1.8pts ------------------- ------ ------ ---- ---- ------- -------
International Insurance revenues 1,673 1,731 +3.5% +2.7% +1.1pts
-0.3pt ----------------------- ----- ----- ---- ---- -------
-------- Asset Management revenues 2,102 1,503 -28.5% -34.0% -0.1pt
+5.4pts Net inflows (Euro billion) +2.2 -37.7 -----------------
---- ----- Total revenues 49,319 48,414 -1.8% -5.7% +1.5pts +2.3pts
-------------- ------ ------ ---- ---- ------- ------- (a) Change
on a comparable basis was calculated at constant FX and scope. (b)
Mainly appreciation of the Euro against GBP and depreciation
against USD and JPY. (c) New Business Value. Life & Savings
Positive net inflows despite negative new business momentum -- Life
& Savings revenues were down 7% to Euro 30,065 million, in line
with trends observed in 4Q08 and 1Q09, mostly due to the adverse
market environment. Net inflows remained positive at Euro +5.6
billion, flat on a comparable basis versus 1H08, as lower inflows
(Euro -3.4 billion) were offset by higher client retention (Euro
+3.4 billion). Net inflows were positive in both General Account
(Euro +2.1 billion) and Unit-linked (Euro +3.5 billion) businesses.
Net Inflows by country/region ----------------------------- Euro
billion 1H08 1H09 ------------ ---- ---- United States +1.6 +0.7
France +1.4 +2.2 United Kingdom(a) -0.5 -0.3 NORCEE(b) +2.6 +1.6
Asia Pacific(c) +0.9 +0.8 MedLA(d) +0.2 +0.7 ----------- ---- ----
Total L&S Net Inflows +6.2 +5.6 --------------------- ---- ----
(a) UK Net Inflows, excluding with-profit funds, stood at Euro+0.4
billion at June 30, 2009. (b) Northern Central and Eastern Europe:
Germany, Belgium, Switzerland, Central & Eastern Europe and
Luxemburg. (c) Asia Pacific: Australia, New Zealand, Hong Kong,
Japan and South-East Asia. (d) Mediterranean and Latin American
Region: Italy, Spain, Portugal, Turkey, Mexico, Greece and Morocco.
-- New Business Volume (APE1) was down 16% to Euro 3,111 million,
mainly due to: (i) Adverse market environment: -- Decline in
individual investments & savings sales mainly in the US,
Australia, the UK and Belgium -- Decrease in group life sales in
Switzerland as a result of limited client turnover in the market
(ii) Negative impact from one-off events, mainly in Japan
(bankruptcy of a major independent agent) and Germany (non
recurring 2008 Riester incentive measures) (iii) Partly offset by a
solid performance in France (+13%), with positive developments in
both group and individual business. The unit-linked share was down
from 48% to 40%, notably impacted by France and the US. Annual
Premium Equivalent by country ------------------------------------
Euro million Change on Change on a a reported comparable 1H08 1H09
basis basis ------------ ---- ---- ---------- ---------- United
States 808 576 -28.7% -37.8% France 690 776 +12.5% +12.5% United
Kingdom 692 493 -28.7% -17.7% NORCEE (a) 660 562 -14.8% -16.0% Asia
Pacific (b) 558 483 -13.3% -24.8% MedLA(c) 204 219 +7.3% -4.0%
------------ --- --- ---- ---- Total Life & Savings APE 3,611
3,111 -13.9% -16.3% ------------ ----- ----- ----- ----- (a)
Northern Central and Eastern Europe: Germany, Belgium, Switzerland
and Central and Eastern Europe. Luxemburg's APE and NBV are not yet
modelled. (b) Asia Pacific: Japan, Australia/New-Zealand,
Hong-Kong, South East Asia & China. India's APE and NBV are
included in South-East Asia & China's APE and NBV from 1H09
(Changes on comparable basis calculated including India's 1H08 APE
and NBV, consolidated under the equity method). (c) Mediterranean
and Latin American Region: Italy, Spain, Portugal, Turkey, Mexico
and Greece. 1H08 APE and NBV included Turkey at 50%, 1H09 APE and
NBV include Turkey at 100%. (Changes on comparable basis calculated
including Turkey's 1H08 APE and NBV at 100%.). Morocco's APE and
NBV are not yet modelled. Stabilizing NBV margin New business
margin was down 0.9pt to 13.7%, mostly as a result of (i) lower
interest rates impacting Variable Annuity products, (ii) higher
unit costs in most countries due to lower volumes, partly offset by
(iii) favorable business mix mainly driven by the US (progressive
development of new redesigned Accumulator products), as well as
Japan and the UK. (Chart:
http://www.newscom.com/cgi-bin/prnh/20090805/NY57078-a) Note:
Actuarial and financial assumptions are not updated on a half year
basis, except for interest rates which are hedged at point of sale
for Variable Annuity products Property & Casualty Growing
Personal lines Stable Commercial lines Property & Casualty
revenues increased by 1% to Euro 14,919 million, driven by Personal
lines (+1%) while Commercial lines remained stable: Property &
Casualty : IFRS revenues by country
---------------------------------------------- In Euro million
Change on a Change on a reported comparable 1H08 1H09 basis basis
------------------- ---- ---- ------ ------ NORCEE(a) 5,224 5,394
+3.3% +1.0% of which Germany 2,199 2,206 +0.3% +0.3% of which
Switzerland 1,805 1,957 +8.4% +1.6% of which Belgium 1,155 1,160
+0.5% +0.5% France 3,021 3,088 +2.2% +2.2% United Kingdom &
Ireland 2,389 2,048 -14.2% -2.0% MedLA(b) 2,984 3,402 +14.0% -1.3%
Rest of the World 902 986 +9.3% +10.9% ------------------ --- ---
---- ----- Total P&C revenues 14,519 14,919 +2.8% +0.8%
------------------ ------ ------ ---- ---- (a) Northern Central and
Eastern Europe: Germany, Belgium, Switzerland, Central and Eastern
Europe and Luxembourg (b) Mediterranean and Latin American Region:
Italy, Spain, Portugal, Turkey, Mexico, Gulf region, Greece and
Morocco. Revenues increased in Personal lines with Net new personal
contracts amounting to +695,000. -- Personal Motor revenues (35% of
total P&C revenues) were up 1% mainly driven by higher volumes
in the Direct business (UK, Asia and France), partly offset by
Spain and Germany, operating in difficult market conditions. --
Personal Non-Motor revenues (24% of total P&C revenues)
increased by 1% mainly due to Canada and France, partly offset by
the UK. Revenues were stable in commercial lines. -- Commercial
Motor revenues (7% of total P&C revenues) were down 1% driven
by lower volumes in the UK and France partly compensated by the
Gulf region and Asia. -- Commercial Non-Motor revenues (33% of
total P&C revenues) were stable as negative evolution in Spain
and the UK was offset by Switzerland (mainly new Health contracts),
Turkey (SME business) and Mexico (renewal of a large contract).
Asset Management Revenues mainly driven by lower average Assets
Under management -- Asset Management revenues were down 34% to Euro
1,503 million, due to 36% lower management fees mainly driven by
lower average assets under management (-26%), unfavorable change in
product mix, as well as a reduced contribution from distribution
fees. -- Assets Under Management were down Euro 13 billion (vs.
December 31, 2008) to Euro 803 billion(3) at June 30, 2009: -- Net
inflows: Euro -38 billion due to AllianceBernstein (Euro -33
billion, mostly in the Institutional channel) and AXA Investment
Managers (Euro -5 billion), -- Market appreciation: Euro +18
billion, mostly at AllianceBernstein, -- Forex, scope & other
impacts: Euro +6 billion mainly due to the positive evolution of
the GBP. Assets Under Management Roll-forward
------------------------------------ In Euro billion Alliance
Bernstein AXA IM Total --------------- --------- ------ ----- AUM
at FY08 331 485 816 ----------- --- --- --- Net inflows -33 -5 -38
Market appreciation +22 -4 +18 Scope & other impacts - +1 +1
Forex impact -2 +7 +5 ------------ -- -- -- AUM at 1H09 318 485 803
----------- --- --- --- Average AUM over the period (FY08-1H09) 325
474 799 --------------------------- --- --- --- Change of average
AUM 1H09 vs. 1H08 ------------------------------ On a reported
basis -34% -11% -22% On a comparable basis -43% -10% -26%
--------------------- --- --- --- International Insurance
International Insurance revenues were up 3% to Euro 1,731 million,
with (i) AXA Corporate Solutions Assurance up 3%, driven mainly by
positive business developments in Liability, as well as (ii) AXA
Assistance up 3%. International Insurance IFRS revenues
------------------------------------- In Euro million Change on
Change on a a reported comparable 1H08 1H09 basis basis
-------------- ---- ---- ----- ------ AXA Corporate Solutions
Assurance 1,220 1,256 +2.9% +2.9% AXA Assistance 362 366 +1.1%
+3.2% AXA Cessions 53 57 +8.3% +8.3% Other International activities
37 52 +38.4% -14.3% ------------------- -- -- ----- ----- Total
International Insurance 1,673 1,731 +3.5% +2.7% -------------------
----- ----- ---- ---- Earnings : Key figures ----------------------
In Euro million Change ------------------- on a comparable 1H08
1H09 Reported basis ---- ---- --------- ---------- Life &
Savings 1,396 1,232 -12% -16% Property & Casualty 1,133 986
-13% -12% Asset Management 285 176 -38% -42% International
Insurance 172 122 -29% -30% Banking 24 15 -38% -40% Holdings(4)
-245 -415 69% 67% -------------- ----- ----- --- --- Underlying
Earnings(5) 2,766 2,116 -24% -26% -------------- ----- ----- ---
--- Net realized capital gains 834 241 -71% -74% Net impairments
-786 -691 -12% -12% Equity portfolio hedging (intrinsic value) 477
71 -85% -85% ------------------ --- -- --- --- Adjusted Earnings(5)
3,290 1,736 -47% -50% -------------------- ----- ----- --- ---
Change in the fair value -1,012 -280 Of which from credit spreads
n.a. 309 Of which MtM of alternative investments n.a. -317 Of which
MtM effects of Derivatives related to balance sheet items n.a. -210
including interest rate derivatives -87 89 including FX and related
derivatives (excluding impairments) -113 45 including time value of
equity hedging -152 -290 Of which MtM of ABS -237 -62 Other -116
-134 ----- ---- ---- Net income 2,162 1,323 -39% -38% ----------
----- ----- --- --- Earnings per share ------------------ In Euro
------- Underlying EPS(6) 1.28 0.95 -26% ----------------- ----
---- --- Adjusted EPS(6) 1.54 0.77 -50% -------------- ---- ----
--- Net income per share 1.07 0.50 -53% -------------------- ----
---- --- Items of the analysis of change in fair value are Non-GAAP
measures and as such are not audited Underlying Earnings Compared
to 2H08, Underlying Earnings were up 63% to Euro 2,116 million
mainly as a result of improvement in Variable Annuity hedging
margin. Compared to 1H08, Underlying Earnings were down 26% to Euro
2,116 million, mainly due to (i) lower average assets under
management negatively impacting underlying earnings in both Life
& Savings (down 16%) and Asset Management (down 42%), and (ii)
combined ratio up 1.7pts to 98.0% (mostly related to natural
events) impacting underlying earnings in Property & Casualty
(down 12%). Life & Savings: lower margins on assets partly
offset by higher technical margin -- Life & Savings Underlying
Earnings were down 16% to Euro 1,232 million. Margin on revenues
was down 2%(7) to Euro 2,219 million as the decrease in revenues
(-7%) was partly offset by higher margins (+6%) mainly resulting
from an improved country mix. Margin on assets was down 22%(7) to
Euro 2,209 million: -- Unit-linked management fees were down 21%(7)
to Euro 865 million, impacted by lower average reserves (-18%) as
well as lower margins (-3%) driven by an unfavourable country mix.
-- General Account investment margin was down 23%(7) to Euro 1,057
million, as a consequence of lower returns in the US, France and
the UK (mainly dividend yield). Average General Account reserves
were stable. -- Other fees were down 24%(7) as a result of lower
mutual funds under management. Technical margin was up 85% to Euro
1,099 million mainly benefiting from (i) Euro 199 million
improvement in Variable Annuity hedging margin in the US (breakeven
in 1H09) as a result of significantly lower basis cost, credit
spreads tightening and gains from interest rate hedging partly
offset by higher financial market volatility, (ii) Euro 165 million
one-off gain in the UK following internal restructuring of an
annuity portfolio and (iii) Euro 71 million higher prior year
reserve developments in Group Health and Life in France. Expenses,
net of DAC/DOC were up 6%(7) to Euro 3,639 million, with
acquisition expenses up 10% mainly due to higher DAC amortization
partly offsetting technical margin gains, and administrative
expenses up 2%. Expenses gross of DAC/DOC as a percentage of
reserves were flat at 1.7%(8). VBI amortization was down 12%(7) to
Euro 137 million. Tax and minority interests were down 15%(7) to
Euro 512 million mainly driven by lower pre-tax earnings. Property
& Casualty combined ratio up 1.7 pts to 98.0%, reflecting
adverse natural events -- Property & Casualty Underlying
Earnings were down 12% to Euro 986 million mainly due to the
deterioration of the combined ratio (up 1.7 pts to 98.0%). Property
& Casualty : Combined ratio by country
----------------------------------------------- Change on a
comparable In % 1H08 1H09 basis --- ---- ---- ------------- NORCEE
(a) 96.7 96.8 +0.1pt of which Belgium 98.0 99.0 +1.0pt of which
Switzerland 92.8 93.9 +1.1pts of which Germany 98.0 97.0 -1.0pt
France 96.9 99.4 +2.6pts MedLA (b) 93.8 97.3 +3.8pts UK &
Ireland 98.2 100.3 +2.2pts Rest of the world 97.1 96.4 -0.7pt
----------------- ---- ---- ------ Total P&C 96.4 98.0 +1.7pts
--------- ---- ---- ------- (a) Northern Central and Eastern
Europe: Germany, Belgium, Switzerland, Central and Eastern Europe
and Luxembourg (b) Mediterranean and Latin American Region: Italy,
Spain, Portugal, Turkey, Mexico, Gulf region, Greece and Morocco
Loss ratio increased by 2.0 points to 70.3%, as a result of: --
+2.1 points from natural events (mainly Klaus storm in continental
Europe), -- +1.6 points from current year loss ratio excluding
natural events (o/w -0.1 point of pricing, +0.8 point of frequency
and severity, +0.3 point in Health, +0.2 point of business mix and
+0.4 point of other incl. reinsurance), -- +0.2 point of scope, --
-2.0 points from higher favorable prior year reserve developments
Reserves ratio(9) stood at 198%, flat versus last year. (Chart:
http://www.newscom.com/cgi-bin/prnh/20090805/NY57078-b) Expense
ratio improved by 0.2 point to 27.7% with administrative expense
ratio down 0.5 point and acquisition expense ratio up 0.3 point.
Investment income(10) was down 3% to Euro 1,105 million mainly
reflecting a drop in asset yield (-4%) while average assets were up
+1%. Tax and minority interests were down 21% to Euro 377 million
mainly due to lower pre-tax earnings. Asset Management: Lower fees
on AUM partly offset by lower expenses -- Asset Management
Underlying Earnings were down 42% to Euro 176 million.
AllianceBernstein Underlying Earnings were down 35% to Euro 95
million as the decrease in revenues (-40%) was partly offset by
lower expenses (-22%11) and a favorable one-off tax impact (Euro
+65 million). AXA Investment Managers Underlying Earnings were down
47% to Euro 81 million, as a result of lower revenues (-24%) and
the non-recurrence of 1H08 investment result (carried interest),
partly offset by lower expenses (-18%11). -- International
Insurance Underlying Earnings were down 30% to Euro 122 million,
mainly as a result of a lower contribution from the Property &
Casualty run-off portfolio, while AXA Corporate Solutions Assurance
underlying earnings were up 7% (losses on Aviation being more than
offset by the non-recurrence of 2008 large claims in Property). --
Banking Underlying Earnings were down 40% at Euro 15 million,
mainly due to higher provisions for doubtful receivables on loans.
-- Holdings(6) Underlying Earnings decreased by Euro 164 million on
a comparable basis to Euro -415 million, mainly due to higher
financing costs related to currency impacts and 2H08 acquisitions,
lower result on hedging of earnings denominated in foreign
currencies and higher administrative costs partly offset by lower
taxes. Adjusted Earnings Compared to 2H08, Adjusted Earnings were
up 327% to Euro 1,736 million benefiting from higher realized
capital gains and lower impairments. Reduced net realized capital
gains on equities Compared to 1H08, Adjusted Earnings were down
Euro 1,640 million (-50%) to Euro 1,736 million, as a result of (i)
Euro 714 million lower underlying earnings, (ii) Euro 614 million
lower realized capital gains (mostly on equities), (iii) Euro 312
million higher impairments net of hedging (mostly on equities). In
1H09, realized capital gains amounted to Euro 241 million.
Impairments amounted to Euro -691 million, of which Euro -339
million on equities, Euro -162 million on fixed income assets and
Euro -191 million on private equity, real estate and other. Equity
hedges had a positive impact of Euro 71 million. Net Income Credit
spread tightening positively impacting Net Income Compared to 2H08,
Net Income was up Euro 2,577 million to Euro 1,323 million,
benefiting from favorable credit spread evolution. Compared to
1H08, Net Income was down Euro 821 million (-38%) to Euro 1,323
million as a result of (i) Euro 1,640 million lower adjusted
earnings, partly offset by (ii) Euro 819 million lower negative
contribution from change in value of assets and derivatives net of
forex and other items, mainly due to credit spread tightening. 1H09
change in fair value amounted to Euro -280 million mainly as a
result of: 1. Euro +309 million impact from credit spreads, offset
by 2. Euro -317 million mark to market of alternative assets
(mainly private equity) 3. Euro -290 million of equity derivatives
(including Euro -220 million hedging program in the US to protect
balance sheet) Balance sheet Confirmation of financial strength --
Group Solvency I ratio was up 6 pts (vs. December 31, 2008) to
133%, as a result of 10 pts positive impact from underlying
earnings partly offset by 4 pts adverse impact notably from real
estate and private equity asset valuations. Solvency I surplus
increased by Euro +1 billion to Euro 7 billion. Stabilizing capital
situation in the US: no capital increase expected this year. --
Shareholders' equity was up Euro 1.4 billion (vs. December 31,
2008) to Euro 38.8 billion, as a result of (i) Euro 1.3 billion of
net income contribution, (ii) Euro 0.9 billion positive variation
in unrealized capital gains (mostly related to equities), partly
offset by (iii) Euro 0.8 billion dividend payment. -- Debt
gearing(2) was down 3 pts (vs. December 31, 2008) to 31% mainly as
a result of Euro 2.0 billion lower net financial debt partly due to
seasonality effect. Invested assets AXA's invested assets amounted
to Euro 561 billion including a Euro 391 billion General Account,
invested in a diversified portfolio comprised of fixed income
investments (79%), cash (7%), real estate (5%), listed equities
(4%), policy loans (2%) and alternative investments (2%). Changes
vs. December 31, 2008 were attributable to: -- Asset movements with
notably: -- Increased investments in govies (Euro +10 billion)
notably benefiting from reduced corporate bond CDS positions (Euro
6 billion) and net inflows -- Sale of listed equities -- Lower cash
mainly due to a Euro 3 billion decrease related to cash used to
settle Variable Annuity hedge positions, mainly as a result of
higher interest rates in the US -- Change in asset values mainly
related to -- Corporate bonds valuation up as a result of spread
tightening -- ABS values down 3 pts to 66% of par, notably on CLO's
and non conforming RMBS -- Real estate down ca. 6% and private
equity down ca. 13% Notes 1. Annual Premium Equivalent (APE)
represents 100% of new business regular premiums + 10% of new
business single premiums. APE is Group share. 2. (net financing
debt + perpetual subordinated debt) / (shareholders' equity,
excluding fair value recorded in shareholders' equity + net
financing debt) 3. The difference with Euro 967 billion of total
assets under management corresponds to assets directly managed by
AXA insurance companies 4. And other companies 5. Underlying
earnings are Adjusted earnings, excluding net capital gains
attributable to shareholders. Adjusted earnings represent Net
income before the impact of exceptional operations, goodwill and
related intangibles amortization/impairments, and profit or loss on
financial assets (classified under the fair value option) and
derivatives. Life & Savings NBV and APE, adjusted and
underlying earnings 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 measure. 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 provide useful and
important information to shareholders and investors as measures of
AXA's financial performance. 6. Net of interest charges on
perpetual subordinated notes (TSDI) and perpetual deeply
subordinated notes (TSS). 7. Changes are pro-forma i.e. restated
from the scope impact of AXA Mexico, Genesys in Australia, QF Vita
in Italy and SBJ in the UK, the Forex and the reclassification of
deferred expenses/loadings in France. Full details are provided in
the activity report's sections related to these countries. 8.
Corresponds to annualized administrative and acquisition expenses
excluding DAC impacts divided by total reserves (General Account,
Unit-Linked and UK with profit) at closing date. 9. Net technical
reserves / Net earned premiums 10. Net of financial charges 11.
Change is calculated using expenses net of inter company
eliminations. About AXA AXA Group is a worldwide leader in
Financial Protection. AXA's operations are diverse geographically,
with major operations in Europe, North America and the Asia/Pacific
area. For 1H09, IFRS revenues amounted to Euro 48.4 billion and
IFRS underlying earnings to Euro 2.1 billion. AXA had Euro 967
billion in assets under management as of June 30, 2009. The AXA
ordinary share is listed on compartment A of Euronext Paris under
the ticker symbol CS (ISIN FR0000120628 - Bloomberg: CS FP -
Reuters: AXAF.PA). The American Depository Share is also listed on
the NYSE under the ticker symbol AXA. This press release is
available on the AXA Group website: http://www.axa.com/ IMPORTANT
LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING
FORWARD-LOOKING STATEMENTS 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 AXA's Annual
Report on Form 20-F and AXA's Document de Reference for the year
ended December 31, 2008, for a description of certain important
factors, risks and uncertainties that may affect AXA's business. In
particular, please refer to the section "Special Note Regarding
Forward-Looking Statements" in AXA's Annual Report on Form 20-F.
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. APPENDIX
1: AXA Group IFRS revenues - 1H09 vs. 1H08 AXA Group IFRS revenues
- contributions & growth by segment and country/region IFRS
revenues Change --------------- 1H08 1H09 Comp. In Euro million
IFRS IFRS Reported basis --------------- ---- ---- ---------------
United States 6,732 5,584 -17.1% -27.7% France 7,441 8,024 +7.8%
+7.8% NORCEE 8,089 7,762 -4.0% -6.3% of which Germany 2,955 3,055
+3.4% +3.4% of which Switzerland 3,274 3,395 +3.7% -2.8% of which
Belgium 1,600 1,047 -34.5% -34.5% of which Central & Eastern
Europe 229 228 -0.5% +10.8% United Kingdom 1,900 1,292 -32.0%
-22.8% Asia Pacific 3,822 4,398 +15.1% -3.2% of which Japan 2,354
2,909 +23.6% -5.2% of which Australia/New-Zealand 801 813 +1.4%
+9.2% of which Hong Kong 533 607 +13.9% -1.3% of which South East
Asia 134 70 -47.8% -49.2% MedLA 2,788 2,949 +5.8% +1.2% Other
countries 55 56 +2.1% +6.5% --------------- -- -- ---- ----- Life
& Savings 30,826 30,065 -2.5% -7.5% -------------- ------
------ ---- ----- NORCEE 5,224 5,394 +3.3% +1.0% of which Germany
2,199 2,206 +0.3% +0.3% of which Belgium 1,155 1,160 +0.5% +0.5% of
which Switzerland 1,805 1,957 +8.4% +1.6% France 3,021 3,088 +2.2%
+2.2% Mediterranean Region 2,984 3,402 +14.0% -1.3% United Kingdom
& Ireland 2,389 2,048 -14.2% -2.0% Canada 527 569 +8.0% +12.7%
Asia 375 417 +11.1% +8.3% ---- --- --- ------ ----- Property &
Casualty 14,519 14,919 +2.8% +0.8% ------------------- ------
------ ---- ----- AXA Corporate Solutions Assurance 1,220 1,256
+2.9% +2.9% Others 452 475 +5.1% +2.1% ------ --- --- ---- -----
International Insurance 1,673 1,731 +3.5% +2.7% ------------- -----
----- ---- ----- AllianceBernstein 1,340 924 -31.0% -39.8% AXA
Investment Managers 763 579 -24.1% -23.9% ----------------- --- ---
------ ----- Asset Management 2,102 1,503 -28.5% -34.0%
---------------- ----- ----- ------ ----- Banking 197 195 -0.7%
+1.0% ------- --- --- ---- ----- Total 49,319 48,414 -1.8% -5.7%
----- ------ ------ ---- ----- APPENDIX 2: Life & Savings -
Breakdown of APE between unit-linked non unit-linked and mutual
funds Breakdown of APE - 12 main countries, regions and modelled
businesses % UL in APE (excl. 1H09 APE mutual funds)
------------------- ------------- UL change on Non- Mutual
comparable In Euro Million UL UL Funds 1H08 1H09 basis
----------------- -- -- ----- ---- ---- ----- France 87 690 15% 11%
-17% United States 357 101 118 82% 78% -39% United Kingdom 430 60 4
90% 88% -20% NORCEE Germany 65 153 40% 30% -31% Switzerland 15 156
0 5% 9% +40% Belgium 6 100 9% 5% -57% Central & Eastern Europe
41 19 8 60% 68% +5% ASIA PACIFIC Japan 62 191 19% 25% +1%
Australia/New-Zealand 4 28 96 23% 13% -328% Hong Kong 21 39 0 50%
35% -34% South East Asia & China 20 16 2 66% 55% -22% MedLA 37
177 5 18% 17% -53% ----- ----- ----- --- -- -- --- Total 1,144
1,731 234 48% 40% -27% ----- ----- ----- --- -- -- --- APPENDIX 3:
AXA Group IFRS Revenues in local currency - Discrete quarters (In
million local currency except Japan in billion) 1Q08 2Q08 3Q08 4Q08
1Q09 2Q09 -------------------------- ---- ---- ---- ---- ---- ----
Life & Savings United States 5,157 5,149 5,149 4,774 4,197
3,257 France 3,976 3,465 3,215 3,615 4,012 4,012 NORCEE of which
Germany 1,477 1,478 1,468 1,810 1,516 1,540 of which Switzerland
4,342 915 843 1,010 4,188 922 of which Belgium 989 611 419 541 534
514 of which Central & Eastern Europe 113 116 121 115 115 113
United Kingdom 708 765 680 676 556 599 Asia Pacific of which Japan
185 193 207 163 174 188 of which Australia/New-Zealand 701 625 748
924 918 607 of which Hong Kong 3,212 3,145 3,393 3,146 3,178 3,099
MedLA 1,291 1,497 920 1,104 1,417 1,532 ----- ----- ----- --- -----
----- ----- Property & Casualty NORCEE of which Germany 1,602
597 709 621 1,619 587 of which Switzerland 2,643 256 159 142 2,686
260 of which Belgium 637 517 507 477 648 513 France 1,821 1,200
1,362 1,212 1,864 1,224 MedLA 1,547 1,436 1,215 2,215 1,725 1,678
United Kingdom & Ireland 873 979 901 770 881 952 Asia 200 176
187 185 212 205 Canada 349 463 437 423 385 530 ------ --- --- ---
--- --- --- International Insurance AXA Corporate Solutions
Assurance 889 331 354 379 900 355 Others 247 205 203 233 279 196
------ --- --- --- --- --- --- Asset Management AllianceBernstein
1,045 1,006 931 711 610 624 AXA Investment Managers 374 388 337 337
295 284 ----------------------- --- --- --- --- --- --- Banking
& Holdings 88 89 82 112 78 89 ------------------ -- -- -- ---
-- -- APPENDIX 4: 1H09 Property & Casualty revenues
contribution & growth by business line Property & Casualty
revenues - contribution & growth by business line Personal
Commercial Personal Motor Non-Motor Commercial Motor Non-Motor
-------------- -------------- -------------- -------------- Change
Change Change Change on on on on % Gross comp. % Gross comp. %
Gross comp. % Gross comp. In % renenues basis revenues basis
revenues basis revenues basis ---- -------- ----- -------- -----
-------- ----- -------- ----- France 32% +3.3% 28% +3.8% 8% -3.1%
32% +1.2% United Kingdom (a) 18% +19.1% 35% -6.8% 6% -7.5% 40%
-3.0% NORCEE Of which Germany 32% -3.3% 30% -0.7% 6% +1.1% 25%
+0.1% Of which Belgium 34% +0.1% 28% +3.3% 7% +1.7% 32% +0.6% Of
which Switzerland 38% -1.0% 12% +3.1% 4% +1.3% 46% +2.5% MedLA 44%
-3.9% 19% +2.4% 10% +0.1% 27% +0.1% Canada 39% +20.9% 19% +25.9% 7%
+2.2% 38% -3.1% Asia 75% +7.7% 7% +3.6% 4% +31.0% 18% +3.0% -----
-- ---- -- ---- - ---- -- ---- Total 35% +1.4% 24% +0.6% 7% -0.8%
33% +0.1% ----- -- ---- -- ---- - ---- -- ---- (a) Including
Ireland. APPENDIX 5: Life & Savings New Business Volume (APE),
Value (NBV) and NBV to APE margin APE, NBV & NBV margin - 12
main countries, regions and modelled businesses Change Change
Change on a on a 1H09 on a compar- compar- NBV/ compar- 1H08 1H09
able 1H08 1H09 able APE able In Euro million APE APE basis NBV NBV
basis margin basis United States 808 576 -37.8% 40 16 -64.4% 2.8%
-2.1pts France 690 776 +12.5% 36 36 -0.8% 4.6% -0.6pt United
Kingdom 692 493 -17.7% 69 48 -19.4% 9.7% -0.2pt NORCEE 660 562
-16.0% 132 102 -24.2% 18.2% -2.0pts Germany 236 218 -10.5% 44 31
-31.0% 14.4% -4.3pts Switzerland 193 170 -17.2% 58 47 -24.4% 27.4%
-2.6pts Belgium 154 106 -31.2% 16 11 -34.9% 10.0% -0.6pt Central
& Eastern +1.7pts Europe 76 68 -0.6% 14 14 +8.4% 19.9% ASIA
PACIFIC 558 483 -24.8% 201 196 -20.3% 40.6% +2.2pts Japan 253 254
-23.0% 136 134 -24.1% 52.7% -0.7pt Australia/New-Zealand 212 129
-36.0% 17 13 -19.6% 9.7% +2.1pts Hong Kong 56 60 -6.8% 37 38 -10.9%
62.4% -2.9pts South East Asia & China 36 40 -2.4% 11 12 -8.1%
30.4% -1.9pts MedLA 204 219 -4.0% 27 29 +2.3% 13.4% +0.8pt -----
----- ----- ----- --- --- ----- ---- ------ TOTAL 3,611 3,111
-16.3% 505 427 -22.0% 13.7% -0.9pt ----- ----- ----- ----- --- ---
----- ---- ------ APPENDIX 6: Earnings summary after taxes and
minority interests / Goodwill Consolidated Net Income and Earnings
income from dis- Inte- related (in Euro Group continued gration
intan- Exceptional million) Share operations costs gibles
operations ------------ ---------- --------- --------- ---------
---------- 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09
--------------------------------------------------- Life &
Savings 1,007 364 - (4) (13) (6) (12) (10) 1 (24) --------------
--- --- - --- --- --- --- --- - --- France 596 213 - - - - - -
United States 297 (131) - - - (2) (1) 1 United Kingdom 113 (43) -
(2) (2) (1) (6) (6) - Japan (28) 7 - (2) (2) - - - Germany 43 (30)
- (1) (2) - - - (7) Switzerland (24) 46 - (2) - (2) (3) - (3)
Belgium (85) 213 - (4) (2) (1) - - Mediterranean Region 39 59 - (2)
- (0) - - Other countries 56 30 - (2) - - (1) (1) - (14) of which
Australia/ New Zealand (12) (23) - (2) - - - - - of which Hong Kong
60 62 - - - - - - ------------------ -- -- - - - - - - Property
& Casualty 1,028 722 - (24) (18) (27) (32) 2 (12) --------- ---
--- - --- --- --- --- - --- France 184 168 - - - - - (4) United
Kingdom & Ireland 105 5 - - - (10) (3) - Germany 194 127 - (6)
(10) - - - (12) Belgium 161 92 - (9) (5) (0) (1) - MedLA 266 170 -
(5) (3) (3) (12) 6 Switzerland 67 90 - (4) - (10) (12) - (1) Other
countries 51 71 - - - (4) (4) - --------------- -- -- - - - --- ---
- International Insurance 155 117 - - - - - - ------------- --- ---
- - - - - - AXA Corporate Solutions Assurance 25 46 - - - - - -
Other 130 71 - - - - - - ----- --- -- - - - - - - Asset Management
198 187 - (1) - (4) - 10 (5) ---------- --- --- - --- - --- - --
--- AllianceBernstein 122 95 - - - (4) - 10 (5) AXA Investment
Managers 76 92 - (1) - - - - -------------- -- -- - --- - - - -
Banking 11 (3) - (3) (1) (0) - - ------- -- --- - --- --- --- - -
Holdings & other (238) (63) - - - - - - 10 ---------------- ---
--- - - - - - - -- TOTAL 2,162 1,323 - (4) (41) (26) (43) (42) 13
(6) ----- --- --- - --- --- --- --- --- -- --- Profit or loss
(including change) on financial Consolidated assets (under Net
realized Earnings Fair Value capital gains (in Euro option) &
Adjusted attributable to Underlying million) derivatives Earnings
shareholders Earnings ------------ ----------- ----------
------------ ------------ 1H08 1H09 1H08 1H09 1H08 1H09 1H08 1H09
------------------------------------------------ Life & Savings
(469) (646) 1,501 1,054 105 (178) 1,396 1,232 -------------- ----
--- --- --- --- --- --- --- France (114) (10) 710 223 279 (42) 431
264 United States (8) (418) 306 287 (20) 16 326 271 United Kingdom
44 (122) 76 88 (16) (45) 92 133 Japan (183) (170) 157 178 24 10 132
168 Germany (9) 6 53 (28) (14) (58) 67 29 Switzerland (49) (17) 30
68 (63) (15) 93 84 Belgium (133) 100 52 115 (32) (9) 84 124
Mediterranean Region (11) 6 53 53 10 (10) 43 64 Other countries (6)
(23) 63 69 (65) (25) 128 95 of which Australia/ New Zealand (3)
(16) (9) (5) (57) (18) 48 13 of which Hong Kong (1) (9) 61 71 (2)
(5) 64 76 ------------------ -- --- -- -- --- --- -- -- Property
& Casualty (192) (15) 1,269 775 136 (210) 1,133 986
------------------- ---- --- --- --- --- --- --- --- France (91)
(27) 278 195 24 (35) 254 230 United Kingdom & Ireland (4) 1 118
6 (55) (80) 174 87 Germany (45) (18) 244 143 72 (23) 173 166
Belgium (22) 21 194 77 86 (16) 107 93 MedLA (12) 5 281 179 38 (38)
243 217 Switzerland (17) (1) 99 104 (32) (19) 131 123 Other
countries 0 4 55 71 3 1 52 70 --------------- - - -- -- - - -- --
International Insurance (24) (10) 179 17 7 5 172 122 -------------
--- --- --- -- - - --- --- AXA Corporate Solutions Assurance (23)
(10) 48 56 2 9 46 48 Other (1) - 131 71 6 (4) 126 75 ----- -- - ---
-- - --- --- -- Asset Management (93) 16 285 176 - 0 285 176
---------------- ---- -- --- --- - - --- --- AllianceBernstein (12)
5 128 95 - 0 128 95 AXA Investment Managers (81) 11 158 81 - 0 158
81 -------------- ---- -- --- -- - - --- -- Banking (4) (10) 19 8
(5) (7) 24 15 ------- -- --- -- - --- --- -- -- Holdings &
other (275) 331 37 (404) 282 11 (245) (415) ---------------- ----
--- -- --- --- -- --- --- TOTAL (1,057) (335) 3,290 1,736 524 (379)
2,766 2,116 ----- ------ --- --- --- --- --- --- --- Consolidated
Earnings (in Euro million) Underlying Earnings ----------------
---------------------- Change at constant Change FX ------
---------- Life & Savings (12%) (16%) -------------- ---- ----
France (39%) (39%) United States (17%) (28%) United Kingdom 44% 67%
Japan 27% (2%) Germany (56%) (56%) Switzerland (10%) (16%) Belgium
48% 48% Mediterranean Region 48% 50% Other countries (26%) (32%) of
which Australia/New Zealand (72%) (69%) of which Hong Kong 19% 3%
------------------ --- -- Property & Casualty (13%) (12%)
------------------- ---- ---- France (10%) (10%) United Kingdom
& Ireland (50%) (46%) Germany (4%) (4%) Belgium (13%) (13%)
MedLA (10%) (10%) Switzerland (6%) (12%) Other countries 35% 45%
--------------- --- ---- International Insurance (29%) (30%)
----------------------- ---- ---- AXA Corporate Solutions Assurance
3% 7% Other (41%) (43%) ----- ---- ---- Asset Management (38%)
(42%) ---------------- ---- ---- AllianceBernstein (26%) (35%) AXA
Investment Managers (49%) (47%) ----------------------- ---- ----
Banking (38%) (40%) ------- ---- ---- Holdings & other 69% 67%
---------------- --- --- TOTAL (24%) (26%) ----- ---- ---- APPENDIX
7: AXA Group simplified Balance Sheet / AXA Group Assets In Euro
billion FY08 1H09 Goodwill 17.0 17.0 VBI 4.4 4.2 DAC &
equivalent 18.8 19.4 Other intangibles 3.2 3.1 Investments 526.7
534.3 Other assets & receivables 71.3 70.1 Cash & cash
equivalents 32.2 26.6 ------------ ----- ----- TOTAL ASSETS 673.6
674.7 ------------ ----- ----- AXA Group Liabilities In Euro
billion FY08 1H09 Shareholders' Equity, Group share 37.4 38.8
Minority interests 3.1 3.4 ------------------ --- --- SH EQUITY
& MINORITY INTERESTS 40.5 42.2 ------------------------------
---- ---- Technical reserves 517.5 530.6 Provisions for risks &
charges 9.3 9.5 Financing debt 14.5 11.7 Other payables &
liabilities 91.7 80.8 TOTAL LIABILITIES 673.6 674.7
----------------- ----- ----- APPENDIX 8: 2Q09 Main Press Releases
/ -- 04/08/2009 AXA opens its first Campus in the Japan
Asia-Pacific region in Singapore -- 04/30/2009 AXA Shareholders'
Meeting - Approval of all resolutions submitted to a vote of
shareholders -- 05/07/2009 1Q 2009 Activity Indicators Please refer
to the following web site address for further details:
http://www.axa.com/en/press/pr/ APPENDIX 9: 2Q09 operations on AXA
shareholders' equity and debt / Shareholders' Equity No significant
operations. Debt AXA issued in June 2009 a Euro 1.0 billion senior
debt (Maturity 2015, 4.5% annual coupon, all-in issuance spread 146
bps over Euribor)
http://www.newscom.com/cgi-bin/prnh/20090805/NY57078-b
http://www.newscom.com/cgi-bin/prnh/20090805/NY57078-aDATASOURCE:
AXA Group CONTACT: Investors: Etienne Bouas-Laurent:
+33.1.40.75.46.85, Marie-Elodie Bazy: +33.1.40.75.97.24, Gilbert
Chahine: +33.1.40.75.56.07, Paul-Antoine Cristofari:
+33.1.40.75.73.60, Sylvie Gleises: +33.1.40.75.49.05, George
Guerrero: +1.212.314.28.68; Media: Emmanuel Touzeau:
+33.1.40.75.46.74, Laurent Secheret: +33.1.40.75.48.17, Armelle
Vercken: +33.1.40.75.46.42, Chris Winans: +1.212.314.55.19, all of
AXA; AXA Individual shareholders Relations: +33.1.40.75.48.43 Web
Site: http://www.axa.com/
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