Proposed Dividend Per Share up 25%
- Solid set of results and robust balance sheet drive proposed
dividend per share up 25%
- Substantial increase in new business margins in mature
markets and strong sales development in high growth markets
- Strategic and organizational initiatives implemented in 2010
to improve AXA's profile and positioning in the future
"In 2010, despite an environment which remained challenging
throughout the year, AXA delivered a solid set of results with a
strong improvement in new business profitability, a rebound in
adjusted earnings and an increase in operating free cash flows. On
this basis, AXA's Board of directors will propose a 25% increase in
dividend to shareholders", said Henri de Castries, Chairman and CEO of AXA.
"2010 was also characterised by significant strategic moves and
organizational changes. I would emphasize in particular our
decisive developments in high growth markets, the partial sale of
our life operations in the UK, the ramp up of our new organization
by business line and the changes in our senior management
teams."
"In 2011, AXA should benefit from an improving macro-economic
outlook. In this context, our main business objectives will be to
accelerate profitable growth and deliver productivity gains across
business lines to support value creation and the improvement of
group operating free cash flows, while successfully pursuing the
reallocation of our capital towards growth oriented geographies or
business segments."
Key figures
In Euro million unless FY09 FY10 Change on a Change on a
otherwise noted reported basis comparable basis
Total revenues 90,124 90,972 +1% -1%
NBV margin (%) 18.0% 22.3% +4.3 pts +2.8 pts
Underlying Earnings 3,854 3,880 +1% -3%
Adjusted Earnings 3,468 4,317 +24% +20%
Net income 3,606 2,749 -24% -26%
Group operating free 3.1 3.7 +18%
cash flow (Euro
billion)
Group Embedded Value 13.4 14.9 +11%
per share (Euro)
Dividend per share 0.55 0.69 +25%
(Euro)
Shareholders' equity 46,229 49,698 +8%
Economic capital ratio 167% 175% +8 pts
FY10 KEY HIGHLIGHTS
All comments are on a comparable basis (constant Forex, scope
and methodology for activity indicators and constant Forex for
earnings).
2010 APE and NBV of the sold UK operations are excluded from
reported figures.
Revenues
- Total Revenues were down 1% to Euro 90,972 million (+1% on a
reported basis).
- Life & Savings revenues were down 3% to Euro 56,923 million.
APE[1] was down 2% to Euro 5,780
million, with lower sales mainly in France, Japan
and the US, partly offset by strong performance in the UK (retained
business only), SEA & China,
Hong-Kong and CEE. High growth
markets[2] APE grew by 25%.
Net inflows remained strong at Euro +8.4
billion with increases over FY09 mainly in Japan and CEE and decreases mainly in
France and the US. High growth
markets2 showed strong net inflows amounting to Euro +1.9 billion (up Euro
0.5 billion vs. FY09).
New Business Value (NBV[3]) was up 12% to Euro 1,290 million, primarily due to improved
product mix mainly benefiting from product redesign in the US and
Japan.
As a result, New Business margin significantly increased from
18.0% in FY09 to 22.3% in FY10.
- Property & Casualty revenues increased by 1.3% to Euro
27,413 million as the 3.9% growth in Personal lines (largely driven by
a 3.8% average price increase) was partly offset by a 2.8% decrease in
Commercial lines, where the 2.1% average price increase was more than
offset notably by lower volumes from selective underwriting and reduced
sum insured. Overall, the average price increase was 3.1%.
- Asset Management revenues were up 5% to Euro 3,328 million,
mainly driven by higher average assets under management (up 3% vs. FY09).
Assets Under Management of Euro 878 billion were up Euro 33 billion
versus December 31, 2009, benefiting from positive market and forex
impacts, partly offset by net outflows mainly from institutional clients.
Earnings
- Underlying Earnings were down 3% to Euro 3,880 million. Life
& Savings Underlying Earnings grew by 1% driven by an improving
investment margin and higher average unit-linked assets partly offset by
a decrease in net technical margin mainly on Variable Annuity. Property
& Casualty Underlying Earnings decreased 2% following a slight increase
in combined ratio, up 0.2 pt to 99.1% (Current Year combined ratio
improved by 2.0 pts more than offset by 2.2 pts lower positive prior
year reserve developments). In Asset Management, Underlying Earnings
fell by 26% mainly as a result of both a non-recurring 2009 tax benefit
and a net provision in 2010 related to losses arising from AXA Rosenberg
coding error, partly offset by higher average assets under management.
- Adjusted Earnings increased strongly by 20% to Euro 4,317
million, benefiting from both higher realized capital gains and lower
impairment charges.
- Net Income was down 26% to Euro 2,749 million. Excluding the
Euro 1,642 million exceptional loss related to the partial sale of the UK
Life operations, net income was up 18% to Euro 4,391 million, mainly
benefiting from higher Adjusted Earnings.
Group Embedded Value (EV), free cash-flow & Dividend
- Group EV was up Euro 3.7 billion to Euro 34.2 billion, or up
11% to Euro 14.9 per share.
- Group Operating Free Cash Flow[4] was up from Euro 3.1
billion to Euro 3.7 billion.
- A dividend of Euro 0.69 per share (up 25% vs. FY09) will be
proposed at the Annual General Meeting that will be held on April 27,
2011. The dividend is expected to be paid on May 4, 2011 with an
ex-dividend date of April 29, 2011.
Balance sheet
- Shareholders' equity was Euro 49.7 billion, up Euro 3.5
billion vs. December 31, 2009, benefiting from Euro 1.5 billion increase
in net unrealized capital gains, a positive Euro 1.0 billion from forex
movements net of hedging instruments and Euro 2.7 billion net income for
the period, partly offset by Euro 1.3 billion 2009 dividend payment and
by Euro 0.4 billion increase in pension deficits.
- Solvency I ratio was 182% post-dividend, up 11 points vs.
December 31, 2009, notably benefiting from Underlying Earnings
(+17 points) partly offset by proposed dividend (-7 points).
- Economic capital ratio increased from 167% as at December
31, 2009 to ca. 175% as at December 31, 2010.
- Debt gearing[5] increased by 1 point to 28% mainly as a
result of forex impact partly offset by earnings net of dividend.
Non-GAAP measures such as Underlying Earnings and Adjusted Earnings are
reconciled to Net Income on page 9 of this release. AXA's 2010 financial
statements have been examined by the Board of Directors on February 16, 2011
and are subject to completion of audit procedures by AXA's independent
auditors.
Notes are on page 16
REVENUES
Revenues: Key figures
Euro million, FY09 FY10 Change Change
except when on a
otherwise reported
noted basis
Comp.(a) Scope FX
basis & impact(b)
Other
Life & 57,620 56,923 -1.2% -2.5% -1.5% +2.8%
Savings
revenues 8.6 8.4
Net inflows 6,188(d) 5,780 -6.6% -2.4% -7.6% +3.5%
(Euro
billion) 1,113(d) 1,290 +15.9% +11.8% -1.8% +5.9%
APE[1] (Group 18.0% 22.3% +4.3pts +2.8pts -0.2 +1.7pts
share)
NBV[3] (Group
share)
NBV to APE
margin (Group
share)
Property & 26,174 27,413 +4.7% +1.3% +0.4% +3.0%
Casualty
revenues
Asset 3,074 3,328 +8.2% +5.0% +0.0% +3.3%
Management
revenues -71.3 -64.1
Net inflows
(Euro
billion)
International 2,860 2,847 -0.4% -2.9% -0.2% +2.7%
Insurance
revenues
Total 90,124 90,972 +0.9% -1.1% -0.9% +2.9%
revenues(c)
(a) Change on a comparable basis was calculated at constant FX
and scope (mainly partial sale of UK Life operations).
(b) Mainly due to the depreciation of the Euro against main
currencies.
(c) Include banking revenues up 16% to Euro 459 million in FY10 (vs. Euro 395 million in FY09).
(d) Of which Euro 540 million APE
and Euro 30 million NBV of sold UK
business, excluded in 2010.
Continued positive net inflows
(Euro +8.4 billion)
Life & Savings
Life & Savings revenues were down 3% to Euro 56,923 million, with increases in MedLA and
NORCEE more than offset by decreases in France, the US and Japan.
Net inflows remained strong at Euro +8.4
billion with increases over FY09 mainly in Japan and CEE and decreases mainly in
France and the US.
Net Inflows by country/region
Euro billion FY09 FY10
France +4.7 +2.8
NORCEE(a) +2.4 +3.3
United States +0.0 -1.1
United Kingdom(b) -1.0 -0.5
Asia Pacific(c) +0.5 +2.0
MedLA(d) +2.0 +1.9
Total L&S Net Inflows +8.6 +8.4
Of which high growth +1.3 +1.9
markets[2]
Of which mature +7.4 +6.5
markets
(a) Northern Central and Eastern
Europe: Germany,
Belgium, Switzerland, Central & Eastern Europe and Luxembourg
(b) UK Net Inflows, excluding with-profit funds, stood at
Euro +0.3 billion at December 31, 2010.
(c) Asia Pacific: Australia, New
Zealand, Hong Kong,
Japan and South East Asia & China
(d) Mediterranean and Latin American Region: Italy, Spain,
Portugal, Turkey, Mexico, Greece and Morocco.
High growth markets[2] showed strong net inflows amounting to
Euro +1.9 billion (up Euro 0.5 billion vs. FY09), representing 14% of
high growth markets[2] opening reserves.
New Business Volume (APE1) by country
APE1 of the sold UK operations is excluded from 2010 reported
figures.
Total APE was down 2% to Euro 5,780
million as the 5% decrease in mature markets was partly
compensated by a strong increase in high growth markets[2]
(+25%).
- In mature markets, lower sales in France (selective
underwriting in Individual business and fewer large contracts in Group
retirement business), in Japan (discontinuation of a lower margin
protection product) and in the US (mainly lower "Accumulator" sales
following product redesign, partly compensated by new "Retirement
Cornerstone" sales) were partly offset by the UK (mainly driven by the
success of the "Elevate" wrap platform) and Italy (in a context of low
interest rates environment limiting the competitiveness of banking
products, and tax amnesty).
- In high growth markets[2], strong performance across the
board, notably in Indonesia, Hong-Kong and Thailand driven by higher
sales of protection with savings products, as well as strong sales in
Poland.
Unit-Linked share in APE was up 2 pts vs. FY09 at 35%.
Annual Premium Equivalent by country/region
Euro million FY09 FY10 Change on a Change on
reported basis a
comparable
basis
France 1,602 1,384 -14% -14%
United States 994 986 -1% -5%
United Kingdom 926(c) 545 -41% +36%
NORCEE (a) 1,156 1,239 +7% -1%
of which Germany 469 464 -1% -1%
of which Switzerland 255 283 +11% +2%
of which Belgium 264 218 -17% -17%
of which Central & Eastern Europe 168 274 +63% +16%
Asia Pacific 1,013 1,073 +6% -5%
of which Japan 532 465 -13% -18%
of which Australia/ New Zealand 269 283 +5% -14%
of which Hong Kong 123 159 +30% +25%
of which South East Asia & China 88 166 +88% +58%
MedLA(b) 497 553 +11% +10%
of which Spain 92 87 -5% -5%
of which Italy 310 361 +16% +16%
of which other 95 105 +11% +4%
Total Life & Savings APE[1] 6,188 5,780 -7% -2%
ow mature markets 5,754 5,114 -11% -5%
ow high growth markets[2] 434 667 +54% +25%
(a) Northern Central and Eastern
Europe: Germany,
Belgium, Switzerland and Central and Eastern Europe. Luxemburg's APE and NBV are not modelled.
(b) Mediterranean and Latin American Region: Italy, Spain,
Portugal, Turkey, Mexico, Morocco and Greece.
(c) Of which Euro 540 million APE of sold UK business excluded in 2010 APE
New Business Value up 12%
New Business Value (NBV[3])
NBV[3] of the sold UK operations is excluded from 2010 reported figures.
NBV[3] was up 12% to Euro 1,290 million, primarily due to:
- improved business mix mainly benefiting from product
redesign in the US and Japan
- improved country mix mainly benefiting from increased
contribution from high growth markets2
- change in operational assumptions mainly driven by France
(projection of lower loss ratio for Protection business, based on
positive experience in recent years), partly offset by
- lower volumes (APE1 down 2%), increase in unit costs and
expense base.
As a result, New Business margin was up from 18.0% to 22.3%.
In high growth markets[2], NBV was up 30% to Euro 254 million mainly as a result of strong
volume increases (APE up 25%). NBV margin stood at a strong level
of 38.2%.
New Business Volume (APE) and margin (NBV margin) by business
Life & Savings: analysis by business
APE NBV margin
Euro million FY09 FY10 Change on a comparable FY10
basis
G/A Protection & 1,845 1,802 -4% 47%
Health
G/A Savings 1,657 1,453 -11% -1%
Unit-Linked 2,140(a) 1,776 +0% 23%
Mutual funds & Other 546 749 +20% 5%
Total 6,188 5,780 -2% 22%
(a) Of which Euro 478 million APE of sold UK business excluded in 2010 APE
- G/A Protection & Health APE was down 4% to Euro 1,802
million as strong sales in SEA & China and Hong-Kong were more than
offset by Japan (discontinuation of a lower margin protection product)
and France (selective underwriting in Health partly compensated by
strong performance in individual Protection).
- G/A Investment & Savings APE was down 11% to Euro 1,453
million as a result of more selective sales in a low interest rates
environment, in particular in France and Belgium.
- Unit-Linked APE was stable at Euro 1,776 million, with a
positive performance across the board, especially in the UK (offshore
bonds and individual pensions on retained business), CEE and SEA & China
offset by the US (lower "Accumulator" sales) and France (lower large
premiums in Group Retirement business partly offset by a 27% increase in
Individual savings).
- Mutual funds & Other APE were up 20% to Euro 749 million
driven by the UK (success of the "Elevate" wrap platform) and favourable
market conditions in the US.
P&C revenues growth supported by tariff increases
Property & Casualty
Property & Casualty revenues increased by 1.3% to
Euro 27,413 million as the 3.9%
growth in Personal lines (largely driven by a 3.8% average price
increase) was partly offset by a 2.8% decrease in Commercial lines,
where the 2.1% average price increase was more than offset notably
by lower volumes from selective underwriting and reduced sum
insured. Overall, the average price increase was 3.1%.
Property & Casualty revenues increased strongly in high
growth markets2 (+6%) and Direct (+19%).
Net new personal contracts in high growth markets and Direct
amounted to +835k and +458k respectively, representing 91% of total
net new personal contracts which amounted to +1,415k.
Property & Casualty : IFRS revenues by country/region
In Euro million FY09 FY10 Change on a Change on a
reported comparable
basis basis
NORCEE(a) 7,907 8,085 +2% -1%
of which Germany 3,501 3,458 -1% -1%
of which Belgium 2,130 2,099 -1% -1%
of which Switzerland 2,154 2,327 +8% -0%
MedLA(b) 6,697 6,888 +3% -0%
of which Spain 2,496 2,348 -6% -6%
of which Italy 1,479 1,508 +2% +2%
of which other 2,723 3,031 +11% +4%
France 5,684 5,849 +3% +3%
United Kingdom & Ireland 3,905 4,147 +6% +3%
Canada 1,167 1,428 +22% +6%
Asia 813 1,016 +25% +7%
Total P&C revenues 26,174 27,413 +5% +1%
of which mature markets 22,206 22,587 +2% -0%
of which Direct 1,457 1,836 +26% +19%
of which high growth markets[2] 2,511 2,990 +19% +6%
(a) Northern Central and Eastern
Europe: Germany,
Belgium, Switzerland, Central an Eastern Europe and Luxembourg
(b) Mediterranean and Latin American Region: Italy, Spain,
Portugal, Turkey, Mexico, Gulf region, Greece and Morocco.
Personal lines were up 3.9% mainly benefiting from a 3.8%
average price increase.
- Personal Motor revenues (36% of total P&C revenues)
increased by 5% mainly driven by the UK (+34%) following strong tarif
increases, higher volumes and improved retention, mostly as a result of
the success of both Swiftcover and AXA branded direct businesses. France
was up 3%, mostly driven by tariff increases while Spain was down 7%,
mainly due to both lower volumes as a result of severe price competition,
and lower risk coverage partly compensated by price increases.
Motor net new contracts amounted to +974k.
- Personal Non-Motor revenues (26% of total P&C revenues)
increased by 3%, driven by France (+6%) largely attributable to price
increases combined with positive portfolio developments, MedLA (+6%) with
strong price increases in Mexico (Health) and in Spain (Health and
Household), as well as Italy as AXA MPS household business benefited from
the rebound of bank mortgage loan activity. This was partly offset by a
decrease in Germany (-3%) due to the medical liability segment
restructuring with tariff increases and selective underwriting.
Household net new contracts amounted to +441k.
Commercial lines were down 2.8% as the 2.1% average price
increase was more than offset notably by lower volumes from more
selective underwriting and by reduced sum insured.
- Commercial Motor revenues (8% of total P&C revenues) were
stable as increases, notably in the UK & Ireland (+10%), France (+2%) and
Canada (+8%) were offset by Spain (-21%), reflecting tariff increase
despite strong competition.
- Commercial non-Motor revenues (30% of total P&C revenues)
decreased 3%, largely due to the UK (-11%) following AXA's exit from
certain property accounts in a very competitive environment, Belgium
(-7%) as a consequence of selective underwriting in workers compensation,
partly offset by the Gulf Region (+14%) with a strong new business in
Health.
Asset Management revenues supported by higher average assets
under management (+3%) and higher average fees
Asset Management
- Asset Management revenues were up 5% to Euro 3,328 million,
mainly driven by higher average assets under management (up 3% vs. FY09)
and higher average management fees, reflecting mainly product mix shift
at AllianceBernstein.
- Assets Under Management were up Euro 33 billion versus
December 31, 2009 to Euro 878 billion[6] mainly as a result of:
- Net outflows of Euro -64 billion due to:
- Euro -44 billion at AllianceBernstein, primarily in
institutional clients segment (Euro -37 billion) mainly on equity
investments and in the Retail segment (Euro -6 billion),
- Euro -20 billion at AXA IM, mainly driven by AXA Rosenberg
(Euro -29 billion) while other expertises experienced net inflows of Euro
+9 billion.
- Market impact of Euro +53 billion due to market recovery
- Forex impact of Euro +41 billion due to depreciation of the
Euro versus other currencies.
Assets Under Management Roll-forward
In Euro billion Alliance Bernstein AXA IM Total
AUM at FY09 346 499 845
Net flows -44 -20 -64
Market appreciation +31 +22 +53
Scope & other impacts +6 -3 +3
Forex impact +24 +18 +41
AUM at FY10 362 516 878
Average AUM over the period 362 501 863
Change of average AUM on a reported basis +10% +4% +7%
Change of average AUM on a comparable +6% +2% +3%
basis
International Insurance
International Insurance revenues were down 3% to Euro 2,847 million, mainly reflecting strict
underwriting discipline and portfolio pruning at AXA Corporate
Solutions Assurance.
International Insurance IFRS revenues
In Euro million FY09 FY10 Change on a Change on
reported a
basis comparable
basis
AXA Corporate Solutions Assurance 1,930 1,931 +0.0% -2.9%
AXA Assistance 765 772 +0.8% -2.0%
Other International activities 165 145 -12.1% -8.6%
Total International Insurance 2,860 2,847 -0.4% -2.9%
EARNINGS
Earnings : Key figures
In Euro million FY09 FY10 Change
Reported on a comparable
basis
Life & Savings 2,336 2,455 +5% +1%
Property & Casualty 1,670 1,692 +1% -2%
Asset Management 355 269 -24% -26%
International Insurance 286 290 +1% +0%
Banking (2) 9 na na
Holdings[7] (793) (836) -5% -5%
Underlying Earnings[8] 3,854 3,880 +1% -3%
Realized capital gains 725 920
Impairments (1,028) (379)
Equity portfolio hedging (83) (104)
Adjusted Earnings[8] 3,468 4,317 +24% +20%
Change in fair value 612 185
Of which impact from credit 1,116 (42)
spreads & interest rates
Of which impact from equities (206) 224
& alternative assets
Of which impact from ABS 63 131
Of which effects related to (361) (129)
balance sheet protection items
including interest rate (107) (89)
derivatives
including FX and related 149 (9)
derivatives (excluding Forex
on impairments)
Including equity & real estate (403) (31)
derivatives
Exceptional and discontinued (202) (1,616)
operations
Other (273) (138)
Net income 3,606 2,749 -24% -26%
Earnings per share
In Euro FY09 FY10 Reported
restated*
Underlying EPS[9] 1.67 1.57 -6%
Adjusted EPS[9] 1.49 1.77 +18%
Net income per share** 1.56 1.08 -31%
Underlying Earnings, Adjusted Earnings, NBV and items of the
analysis of change in fair value are non-GAAP measures and as such
are not audited
* Following AXA's rights issue in 4Q09, the average number of
shares has been restated to take into account an adjustment factor
of 1.023. In the average number of shares calculation, the
adjustment factor has been applied on outstanding shares prior to
the date of the capital increase leading to an adjustment on
average number of shares of 48.4 million shares as of December 31, 2009. As of December 31, 2010, total net outstanding number
of shares was 2,295 million and average fully diluted number of
shares was 2,275 million.
** Revised net income per share takes into account interest
payments related to perpetual debts classified in equity, excluding
Forex impacts. Previously disclosed fully diluted net income per
share included Forex adjustments and amounted to EUR1.51 in FY10.
Increase in both investment margin and fees partly offset by net
technical margin
Underlying Earnings
Underlying Earnings were down 3% to Euro
3,880 million. Life & Savings Underlying Earnings grew
by 1% driven by an improving investment margin and higher average
unit-linked assets partly offset by a decrease in net technical
margin mainly on Variable Annuity. Property & Casualty
Underlying Earnings decreased by 2% following a slight increase in
combined ratio, up 0.2 pt to 99.1% (Current Year combined ratio
improved by 2.0 pts more than offset by 2.2 pts lower positive
prior year reserve developments). In Asset Management, Underlying
Earnings fell by 26% mainly as a result of both a non-recurring
2009 tax benefit and a net provision in 2010 related to losses
arising from AXA Rosenberg coding error, partly offset higher
average assets under management.
- Life & Savings Underlying Earnings were up 1% to
Euro 2,455 million. Pre-tax
Underlying Earnings were up 6% to Euro 3,500
million
Underlying Earnings: margin analysis
Life & Savings Underlying Earnings :
margin analysis
In Euro million FY09 FY10 Change
Reported on a comparable
basis[10]
Margin on revenues 4,569 4,781 +5% -0%
Margin on assets 4,635 5,370 +16% +11%
Of which Unit-Linked 1,822 2,056 +13% +9%
management fees
Of which General Account 2, 179 2,536 +16% +14%
Investment margin
Of which Other fees 633 778 +23% +8%
Technical margin 2,003 767 -62% -56%
Of which mortality, morbidity 2,136 1,584 -26% -22%
& other
Of which variable annuity (133) (818) na na
technical margin
Expenses, net of DAC/DOC (7,642) (7,190) -6% -8%
Of which acquisition expenses (3,782) (3,153) -17% -14%
Of which administrative (3,860) (4,037) +5% -2%
expenses
VBI amortization (363) (250) -31% -35%
Tax and minority interests (865) (1,045) +21% +17%
Life & Savings Underlying 2,336 2,455 +5% +1%
Earnings
- Margin on revenues was stable at Euro
4,781 million as the decrease in revenues (-3%) was offset
by higher margins (+4%), mainly resulting from an improved business
mix (increased contribution to revenues from Protection &
Health business).
- Margin on assets was up 11% to Euro
5,370 million:
- Unit-Linked management fees were up 9% to Euro 2,056 million, benefiting from both higher
average reserves (+5%) following equity market appreciation, and
favourable country mix (+4%).
- General Account investment margin was up 14% to Euro 2,536 million mainly due to lower
policyholders' participation. Investment yield slightly decreased
versus FY09 but remained above 4.0% benefiting from long asset
duration.
- Other fees were up 8% to Euro 778
million mainly driven by favourable equity market evolution
on Mutual funds businesses.
- Technical margin was down Euro
1,11610 million to Euro 767
million, mainly driven by (i) Euro
702 million lower variable annuity technical margin in the
US, primarily from the non repeat of 2009 interest rates hedging
gains, unfavourable credit spreads evolution and additional GMxB
reserve adjustment to assumptions for lower lapse experience
(Euro -351 million), (ii)
Euro 165 million from non repeat of
FY09 one-off gain in the UK mainly as a result of internal
restructuring of an annuity portfolio and (iv) Euro 68 million from non repeat of FY09 positive
prior year developments on Group retirement business in
France.
- Expenses, net of DAC/DOC were down 8%10 to Euro 7,190 million, with administrative expenses
down 2%10 and acquisition expenses down 14%10 mainly due to lower
DAC amortization notably following lower technical margin in the
US.
- VBI amortization was down 35% to Euro
250 million, driven by Japan and France mainly due to non repeat of FY09
assumption changes.
- Tax and minority interests were up 17% to Euro 1,044 million, mainly driven by higher
pre-tax earnings and lower positive tax one-offs vs. FY09. Positive
tax one-offs amounted to Euro 89
million (vs. Euro 129 million
in FY09).
Life & Savings Pre-tax Underlying Earnings by business
Life & Savings Pre-tax Underlying Earnings
by business
In Euro million FY09 FY10 Change
Reported on a comparable
basis
G/A Protection & Health 2,031 2,091 +3% 0%
G/A Savings 522 635 +22% +17%
Unit-Linked 639 672 +5% +3%
Mutual funds & Other 10 101 na na
Life & Savings Pre-tax 3,201 3,500 +9% +6%
Underlying Earnings
- G/A Protection & Health were stable at Euro 2,091 million as increase in investment
margin and loadings on premiums was offset by non repeat of both
2009 high level of surrender margin in Japan and positive prior year reserve
developments in Belgium.
- G/A Savings were up 17% to Euro 635
million, primarily driven by an increase in investment
margin.
- Unit-Linked were up 3% to Euro 672
million, mainly driven by a strong increase in management
fees partly offset by lower US VA pre-tax Underlying Earnings which
amounted to Euro 147 million in FY10
vs. Euro 246 million in FY09.
- Mutual funds & Other were up to Euro 101 million, mainly driven by higher funds
under management benefiting from equity market upturn, as well as
productivity gains at Bluefin in the UK following 2009
restructuring plan.
P&C current year combined ratio down 2 points
- Property & Casualty Underlying Earnings were down 2% to
Euro 1,692 million with a combined
ratio up 0.2 pt to 99.1% and a current year combined ratio down 2.0
points to 102.4%.
Property & Casualty : Combined ratio by country/region
In % FY09 FY10 Change on a comparable basis
NORCEE(a) 97.8 98.5 +0.9 pt
of which Belgium 99.8 98.5 -1.3 pts
of which Switzerland 94.0 88.8 -5.1 pts
of which Germany 98.7 104.6 +5.9 pts
France 99.1 99.1 +0.0 pt
MedLA(b) 99.0 97.7 -1.4 pts
UK & Ireland 102.2 103.9 +1.6 pts
Rest of the world 96.6 96.8 +0.3 pt
Total P&C 99.0 99.1 +0.2 pt
(a) Northern Central and Eastern
Europe: Germany,
Belgium, Switzerland, Central and Eastern Europe, Luxembourg and Ukraine
(b) Mediterranean and Latin American Region: Italy, Spain,
Portugal, Turkey, Mexico, Gulf region, Greece and Morocco.
Loss ratio increased by 0.3 point to 71.1% as a result of:
- -1.9 pts in current year loss ratio to 74.4% of which
- -0.2 pt from natural catastrophes (slightly lower than 2009
level driven by Xynthia storm in continental Europe, freezes in the UK
and difficult winter conditions overall),
- -1.7 pts in current year loss ratio excluding natural
catastrophes, mainly due to price increases (-2.0pts improvement on a net
earned basis)
- +2.2 pts prior year reserve developments, with reserving
ratio at 185%.
Expense ratio decreased by 0.1 point to 28.0% with acquisition
expense ratio down 0.4 point (mainly thanks to the renegotiation of
brokers' commissions in the UK), while administrative expense ratio
was up 0.3 point.
Investment income[11] was fairly stable at Euro 2,115 million, with an investment yield at
4.0%.
Tax and minority interests were nearly flat at Euro 665 million as lower pre-tax earnings were
offset by lower positive tax one-offs which amounted to
Euro 13 million (vs. Euro 61 million in FY09)
Asset Management underlying earnings impacted by one-offs
- Asset Management Underlying Earnings were down 26% to
Euro 269 million mainly as a result
of both non-recurring 2009 tax benefit and a net provision related
to losses arising from AXA Rosenberg coding error. Excluding these
impacts, Underlying Earnings would have been up 12%.
AllianceBernstein Underlying Earnings were down 25% to
Euro 143 million due to the non
repeat of a Euro 62 million positive
tax benefit in 2009. Excluding this impact, Underlying Earnings
would have been up 12% benefiting from higher revenues mainly
driven by higher average assets under management partly offset by
higher expenses.
AXA Investment Managers Underlying Earnings were down 27% to
Euro 125 million due to a
Euro 66 million net provision related
to losses arising from AXA Rosenberg coding error. Excluding this
provision, Underlying Earnings would have been up 11% mainly due to
higher revenues (mainly performance fees) and higher carried
interests partly offset by higher expenses.
- International Insurance Underlying Earnings were flat at
Euro 290 million, mainly as the strong performance of AXA Corporate
Solution Assurance with 2.2 pts improvement in combined ratio (96.9% in
FY10), was offset by lower favourable developments on run-off portfolios.
- Banking Underlying Earnings increased to Euro 9 million (vs.
Euro -2 million in FY09).
- Holdings[7] Underlying Earnings decreased by Euro 36 million
on a comparable basis to Euro -836 million.
Up 20% driven by higher realized gains and lower impairments
Adjusted Earnings
Adjusted Earnings increased strongly by 20% to Euro 4,317 million, benefiting from both higher
realized capital gains and lower impairment charges.
FY10 realized capital gains amounted to Euro 920[12] million vs. Euro 725 million in FY09. Impairments amounted to
Euro 379 million (of which
Euro 170 million on equities and
Euro 166 million on fixed income
assets) vs. Euro 1,028 million in
FY09.
Net income reduced by the partial sale of the UK Life
operations
Net Income
Net Income was down 26% to Euro 2,749
million. Excluding the Euro 1,642
million exceptional loss related to the partial sale of the
UK Life operations, net income was up 18% to Euro 4,391 million, mainly benefiting from higher
Adjusted Earnings.
FY10 change in fair value amounted to Euro 185 million mainly as a result of:
(i) Euro -42 million impact from
credit spreads and interest rates
(ii) Euro +224 million mark to
market of equity and alternative assets, mainly Private Equity
(iii) Euro +131 million impact
from mark-to-market of ABS
(iv) Euro -129 million impact from
balance sheet derivatives
Other items amounted to Euro -1,616
million, of which Euro -1,642
million exceptional loss related to the partial sale of the
UK Life operations.
Group EV, Free cash flow & dividend
Group EV up 11% to EUR14.9 per
share
Group Embedded Value
Group EV was up Euro 3.7 billion
from Euro 30.4 billion to Euro 34.2
billion, or up 11% to Euro
14.9 per share.
In Euro million 2009 In% of Group 2010 In% of Group
EV EV
Opening Group EV 18,600 30,422
Opening adjustments 57 -106
Operating return 4,974 +27% 7,156 +24%
Investment experience 4,397 +24% -2,228 -7%
Total return on Group EV 9,371 +50% 4,928 +16%
Dividend paid -836 -1,259
Exchange rate movement impact 272 -193
Capital increases 2,434 385
Change in scope and other 522 -25
Closing Group EV 30,422 34,152
o/w VIF 18,456 20,087
o/w TNAV 11 967 14,065
In line with industry practices, AXA adjusted its
market-consistent methodology in terms of liquidity premium
(calibration and allowance by products) and yield curve
extrapolation, resulting in an opening negative adjustment of
Euro -0.3 billion.
In 2010, the Group EV benefited from a Euro 1.7 billion impact from the use of a
liquidity premium versus Euro 2.6
billion in 2009.
Operating return amounted to Euro 7.2
billion. The increase vs. FY09 was mainly driven by higher
inforce and new business contributions in Life & Savings as
well as favourable operational assumption changes of Euro 1.8 billion mainly in France following the use of a lower projected
loss ratio for Protection business based on positive experience in
recent years.
Investment experience amounted to Euro
-2.2 billion mainly due to lower interest rates, higher
interest rate volatilities and widening credit spreads.
Operating Free Cash Flow
Group Operating Free Cash Flow was up from Euro 3.1 billion to Euro 3.7 billion mainly
benefiting from the increase in the Life & Savings Operating
Free Cash Flow up from Euro 0.8 billion to
Euro 1.4 billion.
Dividend
A dividend of Euro 0.69 per share
(up 25% vs. FY09) will be proposed at the Annual General Meeting
that will be held on April 27, 2011.
The dividend is expected to be paid on May
4, 2011 with an ex-dividend date of April 29, 2011.
Balance Sheet
Shareholders' Equity & Solvency & Debt
- Shareholders' equity was Euro 49.7
billion, up Euro 3.5 billion
vs. December 31, 2009, benefiting
from a Euro 1.5 billion increase in
net unrealized gains, a positive Euro 1.0
billion forex impact net of hedging instruments and
Euro 2.7 billion net income for the
period, partly offset by Euro 1.3
billion 2009 dividend payment and by an increase of
Euro 0.4 billion in pension
deficits.
Net unrealized gains on real estate & loans (not included in
shareholders' equity) increased by Euro 0.3
billion to Euro 2.9[13] billion as of December 31, 2010.
Solvency I ratio up 11 points to 182%
- Solvency I ratio was 182% post-dividend, up 11 points vs.
December 31, 2009, notably benefiting
from Underlying Earnings (+17 points) partly offset by proposed
dividend (-7 points).
Indicative sensitivities to market movements are: -6 pts to -10%
in equity markets, -6 pts to -10% in real estate markets, -2 pts to
-10% in private equity market value.
On fixed income assets, sensitivities to market movements are:
-8 pts to 10 bps increase in interest rates, -3 pts to 10 bps
increase in credit spreads, with the combination of both impacts
capped at -28 pts of Solvency.
- Economic capital ratio increased from 167% as at December 31, 2009 to ca. 175% as at December 31, 2010.
Debt gearing up 1 pt to 28%
- Financial structure.
AXA's net financial debt was up Euro 1.7
billion to Euro 15.2 billion, mainly from forex impact on
nominal debt and related hedging instruments (Euro +3.1 billion), partly offset by the partial
sale of the UK Life operations (Euro -1.7
billion).
Debt gearing was up 1 pt to 28% mainly as a result of forex
impact partly offset by earnings net of dividend.
Interest coverage ratio increased to 8.5x from 7.9x in FY09.
Invested assets
AXA's invested assets amounted to Euro
618 billion including Euro 447
billion in the General Account, invested in a diversified
portfolio mainly comprised of fixed income investments (83%), cash
(5%), real estate (5%) and listed equities (4%).
General Account asset movements included:
(i) Net inflows: invested mainly in government bonds
(ii) Mark to market effect: fixed income assets benefiting from
interest rate decreases
(iii) Forex effect: depreciation of the Euro mainly against USD,
JPY and CHF
(iv) Scope effect: Euro -6 billion
related to the partial sale of the UK Life operations.
Exposure to certain European government bonds: AXA's exposure
net of policyholders' participation and tax was estimated at
Euro 6.0bn for Italy, Euro
4.1bn for Spain,
Euro 0.7bn for Portugal, Euro
0.3bn for Greece and
Euro 0.3bn for Ireland.
APPENDIX 1: AXA Group IFRS revenues - FY10 vs. FY09 /
AXA Group IFRS revenues - contributions & growth by segment
and country/region
In Euro million FY09 FY10 IFRS revenues change
IFRS IFRS Reported Comp. basis
United States 9,384 9,458 +0.8% -3.4%
France 16,340 14,624 -10.5% -10.5%
NORCEE 14,187 15,047 +6.1% +3.1%
of which Germany 6,694 6,867 +2.6% +2.6%
of which Switzerland 4,437 5,082 +14.5% +5.6%
of which Belgium 2,515 2,504 -0.4% -0.4%
of which Central & Eastern Europe 468 512 +9.4% +4.5%
United Kingdom 2,783 2,040 -26.7% -0.0%
Asia Pacific 8,337 8,676 +4.1% -3.5%
of which Japan 5,438 5,560 +2.3% -4.1%
of which Australia/New-Zealand 1,532 1,551 +1.3% -17.1%
of which Hong Kong 1,203 1,321 +9.8% +13.3%
of which South East Asia & China 164 244 +48.5% 30.3%
MedLA 6,473 6,944 +7.3% +7.0%
of which Spain 754 724 -4.0% -4.0%
of which Italy 4,994 5,483 +9.8% +9.8%
of which other 725 738 +1.8% -0.7%
Canada 115 132 +14.1% -0.7%
Life & Savings 57,620 56,923 -1.2% -2.5%
of which Mature markets 55,402 54,439 -1.7% -3.0%
of which high growth markets2 2,218 2,485 12.0% +10.8%
NORCEE 7,907 8,085 +2.2% -0.9%
of which Germany 3,501 3,458 -1.3% -1.3%
of which Belgium 2,130 2,099 -1.5% -1.5%
of which Switzerland 2,154 2,327 +8.1% -0.4%
France 5,684 5,849 +2.9% +2.9%
Mediterranean Region 6,697 6,888 +2.9% -0.0%
of which Spain 2,496 2,348 -5.9% -5.9%
of which Italy 1,479 1,508 +2.0% +2.0%
of which other 2,723 3,031 +11.3% +4.2%
United Kingdom & Ireland 3,905 4,147 +6.2% +3.1%
Canada 1,167 1,428 22.3% +6.4%
Asia 813 1,016 +24.9% +6.8%
Property & Casualty 26,174 27,413 +4.7% +1.3%
AXA Corporate Solutions
Assurance 1,930 1,931 +0.0% -2.9%
Others 930 917 -1.5% -3.0%
International Insurance 2,860 2,847 -0.4% -2.9%
AllianceBernstein 1,887 2,109 +11.8% +7.2%
AXA Investment Managers 1,187 1,219 +2.6% +1.5%
Asset Management 3,074 3,328 +8.2% +5.0%
Banking 395 459 +16.3% +16.0%
Total 90,124 90,972 +0.9% -1.1%
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
Group share FY10 APE % UL in APE UL change
on
in Euro million (excl. mutual comparable
funds) basis
UL Non-UL Mutual FY09 FY10
Funds
France 153 1,231 12% 11% -18%
United States 438 210 338 74% 68% -23%
United Kingdom 402 30 114 88% 93% +22%
NORCEE
Germany 131 334 28% 28% -1%
Switzerland 28 254 0 12% 10% -13%
Belgium 19 200 5% 9% +40%
Central & Eastern Europe 201 28 45 78% 88% +33%
ASIA PACIFIC
Japan 119 346 20% 26% +3%
Australia/New-Zealand 31 43 209 43% 42% -31%
Hong Kong 63 96 0 36% 40% +39%
South East Asia & China 84 81 51% 51% +64%
MedLA 106 436 10 21% 20% +6%
Spain 13 66 8 14% 17% +15%
Italy 88 271 2 26% 24% +7%
Other (a) 5 100 7% 5% -21%
Total 1,776 3,290 715 38% 35% +0%
(a) Portugal, Greece, Turkey, Mexico and Morocco
Appendix 3: AXA Group IFRS
Revenues in local currency - Discrete quarters /
(In million local currency except 1Q09 2Q09 3Q09 4Q09
Japan in billion)
Life & Savings
United States 4,197 3,257 2,670 2,962
France 4,012 4,012 3,623 4,694
NORCEE
of which Germany 1,516 1,540 1,829 1,810
of which Switzerland 4,188 922 749 838
of which Belgium 534 514 603 865
of which Central & Eastern Europe 115 113 116 124
United Kingdom 556 599 620 705
Asia Pacific
of which Japan 174 188 167 176
of which Australia/New-Zealand 918 607 586 606
of which Hong Kong 3,178 3,099 3,317 3,407
MedLA 1,417 1,532 1,471 2,053
Property & Casualty
NORCEE
of which Germany 1,619 587 699 596
of which Switzerland 2,686 260 162 144
of which Belgium 648 513 491 479
France 1,864 1,224 1,346 1,250
MedLA 1,725 1,678 1,403 1,891
United Kingdom & Ireland 881 952 891 757
Asia 212 205 206 191
Canada 385 530 484 452
International Insurance
AXA Corporate Solutions Assurance 900 355 343 332
Others 279 196 234 221
Asset Management
AllianceBernstein 610 624 667 731
AXA Investment Managers 295 284 284 325
Banking & Holdings 78 89 91 80
CONT.
(In million local currency except Japan in 1Q10 2Q10 3Q10 4Q10
billion)
Life & Savings
United States 3,084 3,174 3,138 3,249
France 3,824 3,502 3,500 3,799
NORCEE
of which Germany 1,696 1,786 1,628 1,757
of which Switzerland 4,325 899 868 978
of which Belgium 731 605 549 618
of which Central & Eastern Europe 119 118 123 151
United Kingdom 605 612 417 123
Asia Pacific
of which Japan 154 210 154 158
of which Australia/New-Zealand 559 646 544 513
of which Hong Kong 3,368 3,493 3,659 3,196
MedLA 2,355 1,879 1,464 1,245
Property & Casualty
NORCEE
of which Germany 1,584 593 692 588
of which Switzerland 2,645 256 182 154
of which Belgium 634 504 479 482
France 1,902 1,279 1,375 1,293
MedLA 1,745 1,693 1,469 1,982
United Kingdom & Ireland 872 978 902 821
Asia 243 258 279 236
Canada 404 560 528 478
International Insurance
AXA Corporate Solutions Assurance 933 338 326 334
Others 279 212 208 217
Asset Management
AllianceBernstein 701 712 685 722
AXA Investment Managers 302 303 263 350
Banking & Holdings 90 97 87 117
Appendix 4: FY10 Property & Casualty revenues contribution & growth by
business line /
Property & Casualty revenues - contribution & growth by business
line
in % Personal Motor Personal Commercial Commercial
Non-Motor Motor Non-Motor
% Gross Change % Gross Change % Gross Change %Gross Change
revenues on revenues on revenues on revenues on
comp. comp. comp. comp.
basis basis basis basis
France 33% +3% 29% +6% 8% +2% 31% +0%
United 26% +34% 36% +1% 7% +10% 32% -11%
Kingdom (a)
NORCEE 32% +1% 26% -1% 7% +1% 32% -3%
Of which 28% -1% 36% -3% 6% +2% 22% -1%
Germany
Of which 30% +2% 21% +3% 12% -1% 37% -7%
Belgium
Of which 35% +1% 17% +2% 4% +0% 44% -2%
Switzerland
MedLA 43% +1% 21% +6% 10% -7% 26% -4%
Of which 51% -7% 24% +4% 7% -21% 18% -8%
Spain
Of which 57% +2% 30% +5% 1% -37% 12% +1%
Italy
Of which 31% +14% 13% +11% 17% +1% 39% -3%
other (b)
Canada 37% +6% 20% +8% 7% +8% 37% +5%
Asia 73% +4% 8% +23% 5% +12% 16% +1%
Total 36% +5% 26% +3% 8% -0% 30% -3%
(a) Including Ireland.
(b) Portugal, Greece, Turkey, Mexico, Gulf region and Morocco
APPENDIX 5: Life & Savings quarterly New Business Value (NBV) and NBV
margin restated based on FY10 profitability factors /
in Euro million 1Q10 2Q10
NBV APE NBV NBV APE NBV
margin margin
United States 29 231 12% 34 274 12%
France 38 346 11% 41 335 12%
United Kingdom 8 161 5% 7 134 5%
NORCEE 100 382 26% 65 276 23%
Germany 29 136 22% 21 111 19%
Switzerland 55 128 43% 29 51 56%
Belgium 4 68 6% 5 55 8%
Central & Eastern Europe 11 51 21% 10 58 18%
ASIA PACIFIC 114 231 49% 142 293 48%
Japan 67 91 73% 83 131 63%
Australia/New-Zealand 9 69 13% 12 84 14%
Hong Kong 22 33 66% 29 38 75%
South East Asia & China 16 38 43% 18 41 45%
MedLA 22 171 13% 23 151 15%
Of which Spain 2 22 10% 3 19 14%
Of which Italy 15 121 13% 15 104 15%
Of which other 4 28 15% 5 29 18%
TOTAL 311 1,522 20% 311 1,464 21%
Of which high growth markets 51 141 36% 59 157 37%
Of which mature markets 260 1,381 19% 252 1,307 19%
CONT.
in Euro million 3Q10 4Q10
NBV APE NBV margin NBV APE NBV margin
United States 30 236 13% 29 245 12%
France 32 315 10% 48 388 12%
United Kingdom 8 126 6% 6 124 5%
NORCEE 69 280 25% 65 301 22%
Germany 24 111 22% 21 106 20%
Switzerland 25 54 46% 16 49 32%
Belgium 7 54 13% 7 42 16%
Central & Eastern Europe 13 61 22% 22 104 21 %
ASIA PACIFIC 151 265 57% 182 284 64%
Japan 89 113 79% 115 130 89%
Australia/New-Zealand 12 70 17% 12 60 20%
Hong Kong 30 40 75% 34 48 71%
South East Asia & China 21 42 50% 21 46 46%
MedLA 19 109 18% 27 121 22%
Of which Spain 2 17 9% 3 28 12%
Of which Italy 13 69 18% 17 67 26%
Of which other 5 22 22% 7 26 26%
TOTAL 310 1,331 23% 358 1,464 24%
APPENDIX 6: FY10 Property & Casualty price increases /
Property & Casualty price increases by country
and business line
In % Personal Commercial(a)
France +3.6% +3.3%
Germany -0.2% -0.0%
United Kingdom & +11.0% +3.5%
Ireland
Switzerland -0.6% -0.9%
Belgium +2.6% +0.0%
Canada +5.6% +1.4%
MedLA +4.0% +2.9%
Total +3.8% +2.1%
(a) New business only
APE, NBV & NBV margin - main countries, regions and modelled businesses
Appendix 7: Life & Savings New Business Volume (APE), Value
(NBV) and NBV to APE margin
in Euro million FY09 FY10 Change on a comparable FY09 NBV
APE APE basis
United States 994 986 - 4.9% 73
France 1,602 1,384 - 13.6% 145
United Kingdom 926 545 + 36.3% 97
NORCEE 1,156 1,239 -0.8% 223
Germany 469 464 - 1.1% 63
Switzerland 255 283 + 2.2 % 84
Belgium 264 218 - 17.2% 41
Central & Eastern Europe 168 274 + 15.6% 34
ASIA PACIFIC 1,013 1,073 - 5.1% 496
Japan 532 465 - 18.0% 330
Australia/New-Zealand 269 283 - 13.9% 38
Hong Kong 123 159 + 24.8% 78
South East Asia & China 88 166 + 58.0% 50
MedLA 497 553 + 9.9% 79
Spain 92 87 - 5.5% 9
Italy 310 361 + 16.2% 53
Other 95 105 + 3.9% 17
TOTAL 6,188 5,780 - 2.4% 1,113
Of which high growth markets 434 667 + 25.2% 168
Of which mature markets 5,754 5,114 -5.0% 944
CONT.
in Euro million FY10 NBV Change on a FY10 Change on
comparable basis NBV/APE a
margin comparable
basis
United States 122 + 61.7% 12.4% + 5.1 pts
France 159 + 10.2% 11.5% + 2.5 pts
United Kingdom 29 - 57.9% 5.4% - 12.0 pts
NORCEE 299 + 21.7% 24.1% + 4.4 pts
Germany 96 + 51.5% 20.6% + 7.2 pts
Switzerland 124 + 35.7% 43.9% + 10.8 pts
Belgium 22 - 46.1% 10.2% - 5.5 pts
Central & Eastern Europe 56 + 16.1% 20.6% + 0.1 pt
ASIA PACIFIC 589 + 9.4% 54.9% + 7.5 pts
Japan 354 + 0.7% 76.1% + 14.2 pts
Australia/New-Zealand 44 - 4.0% 15.6% + 1.6 pts
Hong Kong 114 + 39.9% 71.6% + 7.7 pts
South East Asia & China 77 + 29.1% 46.2% - 10.3 pts
MedLA 91 + 14.2% 16.5% + 0.6 pt
Spain 10 + 7.3% 11.4% + 1.4 pts
Italy 60 + 13.8% 16.7% - 0.3 pt
Other 21 + 19.0% 20.2% + 2.6 pts
TOTAL 1,290 + 11.8% 22.3% + 2.8 pts
Of which high growth markets 254 + 30.1% 38.2% + 1.4 pts
Of which mature markets 1,035 + 8.2% 20.2% + 2.4 pts
Appendix 8: Earnings summary after taxes and minority interests
Consolidated Earnings Net income Integration costs
Group Share
(in Euro million)
FY09 FY10 FY09 FY10
Life & Savings 2,075 1,396 (11) (16)
France 842 917 - -
United States (28) 410 - (3)
United Kingdom (33) (1,468) - (1)
Japan 420 377 (2) (9)
Germany (50) 214 (3) (0)
Switzerland 185 361 - -
Belgium 439 265 (4) (3)
Mediterranean Region 139 127 (1) -
Other countries 161 194 - (0)
of which Australia/New Zealand 27 76 - -
of which Hong Kong 132 162 - -
Property & Casualty 1,516 1,750 (46) (22)
France 445 462 - -
United Kingdom & Ireland 44 32 - (10)
Germany 207 190 (21) (3)
Belgium 186 151 (18) (9)
MedLA 277 368 (7) -
Switzerland 227 370 - -
Other countries 130 177 - (0)
International Insurance 326 378 - -
AXA Corporate Solutions Assurance 160 192 - -
Other 166 186 - -
Asset Management 409 255 - (31)
AllianceBernstein 205 116 - (29)
AXA Investment Managers 204 139 - (2)
Banking (17) 9 (4) (6)
Holdings & other (703) (1,040) - (0)
TOTAL 3,606 2,749 (60) (76)
CONT.
Consolidated Earnings Goodwill and related Exceptional and
(in Euro million) intangibles discontinued operations
FY09 FY10 FY09 FY10
Life & Savings (21) (23) (105) (1,646)
France - - - -
United States (1) (1) - -
United Kingdom (13) (12) (3) (1,642)
Japan - - - -
Germany - - (84) 1
Switzerland (5) (6) (16) 51
Belgium 0 - - (4)
Mediterranean Region (0) (0) 1 -
Other countries (2) (3) (3) (52)
of which Australia/New - - 10 (2)
Zealand
of which Hong Kong - - - -
Property & Casualty (64) (64) 32 6
France - - - -
United Kingdom & Ireland (6) (5) - -
Germany - (0) 26 -
Belgium (2) (2) - (2)
MedLA (25) (24) 7 (1)
Switzerland (25) (26) (1) 9
Other countries (6) (7) - -
International Insurance (1) - 1 3
AXA Corporate Solutions - - - -
Assurance
Other (1) - 1 3
Asset Management - - 5 2
AllianceBernstein - - - 2
AXA Investment Managers - - 5 -
Banking - (0) - -
Holdings & other - - (135) 20
TOTAL (85) (87) (202) (1,616)
CONT.
Consolidated Earnings Profit or loss (including Adjusted
(in Euro million) change) on financial assets Earnings
(under Fair Value option)
& derivatives
FY09 FY10 FY09 FY10
Life & Savings (52) 347 2,263 2,734
France 281 63 561 854
United States (555) 73 529 340
United Kingdom (165) 59 148 128
Japan 191 46 231 340
Germany 25 29 12 185
Switzerland (19) 69 225 247
Belgium 188 33 256 239
Mediterranean Region 20 (24) 119 152
Other countries (17) (0) 183 250
of which Australia/New (12) 1 29 77
Zealand
of which Hong Kong (4) - 137 161
Property & Casualty 187 27 1,406 1,803
France 65 (6) 380 468
United Kingdom & Ireland 7 5 42 42
Germany 23 7 179 185
Belgium 62 20 143 144
MedLA 22 13 281 380
Switzerland 5 (12) 247 400
Other countries 3 (1) 133 185
International Insurance 20 32 306 343
AXA Corporate Solutions 16 26 144 166
Assurance
Other 5 6 161 177
Asset Management 49 21 355 264
AllianceBernstein 20 0 185 143
AXA Investment Managers 29 20 171 120
Banking (8) 9 (6) 7
Holdings & other 288 (226) (857) (834)
TOTAL 485 210 3,468 4,317
CONT.
Consolidated Earnings Net realized capital gains Underlying Earnings
(in Euro million) attributable to shareholders
FY09 FY10 FY09 FY10
Life & Savings (73) 279 2,336 2,455
France 91 247 470 607
United States (16) (138) 545 478
United Kingdom (38) (6) 186 134
Japan 20 5 211 335
Germany (145) 11 157 174
Switzerland (1) 34 226 212
Belgium 24 69 231 170
Mediterranean Region 4 35 115 117
Other countries (12) 22 195 228
of which Australia/New (17) (4) 46 82
Zealand
of which Hong Kong 2 19 135 142
Property & Casualty (264) 111 1,670 1,692
France (26) 36 406 432
United Kingdom & (58) (9) 100 50
Ireland
Germany (105) 8 283 177
Belgium (25) (15) 168 159
MedLA (44) 22 326 358
Switzerland (13) 40 260 359
Other countries 7 28 126 157
International Insurance 19 53 286 290
AXA Corporate Solutions 12 5 132 161
Assurance
Other 7 48 154 129
Asset Management - (5) 355 269
AllianceBernstein - 0 185 143
AXA Investment Managers - (5) 171 125
Banking (4) (3) (2) 9
Holdings & other (64) 2 (793) (836)
TOTAL (386) 437 3,854 3,880
CONT.
Consolidated Earnings Underlying
Earnings
(in Euro million)
Change Change at constant
FX
Life & Savings +5% +1%
France +29% +29%
United States -12% -16%
United Kingdom -28% -30%
Japan +59% +49%
Germany +11% +11%
Switzerland -6% -14%
Belgium -27% -27%
Mediterranean Region +2% +1%
Other countries +17% +5%
of which Australia/New Zealand +77% +46%
of which Hong Kong +6% +1%
Property & Casualty +1% -2%
France +6% +6%
United Kingdom & Ireland -50% -49%
Germany -38% -38%
Belgium -6% -6%
MedLA +10% +8%
Switzerland +38% +27%
Other countries +24% +10%
International Insurance +1% +0%
AXA Corporate Solutions Assurance +22% +21%
Other -16% -18%
Asset Management -24% -26%
AllianceBernstein -22% -25%
AXA Investment Managers -27% -27%
Banking +643% +758%
Holdings & other -5% -5%
TOTAL +1% -3%
Appendix 9: AXA Group simplified Balance Sheet /
AXA Group Assets AXA Group liabilities
In Euro billion FY09 FY10 In Euro billion FY09 FY10
(preliminary) (preliminary)
Goodwill 16.5 16.7 Shareholders' 46.2 49.7
Equity, Group
share
VBI 3.6 3.1 Minority 3.7 4.2
interests
DAC & 18.8 19.6 SH EQUITY & 49.9 53.9
equivalent MINORITY
INTERESTS
Other 3.1 3.6 Financing debt 10.2 10.5
intangibles
Investments 590.0 594.7 Technical 569.1 563.6
reserves
Other assets & 56.6 71.9 Provisions for 9.5 10.5
receivables risks & charges
Cash & cash 19.6 22.1 Other payables & 69.5 93.5
equivalents liabilities
TOTAL ASSETS 708.3 731.9 TOTAL LIABILITIES 708.3 731.9
APPENDIX 10: 4Q10 And 1q11 Main Press Releases /
- 10/28/2010 - ICBC joined forces with AXA and Minmetals to
expand in China insurance market together
- 10/28/2010 - 9M 2010 activity indicators
- 10/29/2010 - AXA announces the subscription prices for its
2010 employee share offering (Shareplan 2010)
- 11/02/2010 - AXA Global P&C announces the successful
placement of EUR275 million catastrophe bonds
- 11/15/2010 - AXA and AMP make a joint proposal to AXA APH
where AXA would dispose of its 54% stage in AXA APH to AMP and would
acquire AXA APH Asian operations
- 11/16/2010 - AXA holds today its Autumn Investor Seminar
- 11/29/2010 - AXA, AMP and AXA APH have signed a transaction
documents to implement proposal
- 12/03/2010 - Christopher "Kip" Condron to retire first of
the year
- 12/06/2010 - Results of the AXA Group employee share
offering in 2010
- 12/20/2010 - Jérôme Droesch is appointed CEO of AXA Gulf
- 12/30/2010 - AXA Central & Eastern Europe continues its
expansion: acquisition of B&B Insurance in Belarus
- 02/01/2011 - AXA signs the European Road Safety Charter
- 02/03/2011 - No additional material impact expected from AXA
Rosenberg settlement with the US SEC
Please refer to the following web site address for further details:
http://www.axa.com/en/press/pr/
APPENDIX 11: 4Q10 operations on AXA shareholders' equity and debt /
Shareholders' Equity
No significant operations.
Debt
No significant operations.
NOTES & Other INFORMATION /
Notes
[1] Annual Premium Equivalent (APE) represents 100% of new
business regular premiums + 10% of new business single premiums.
APE is Group share.
[2] Life & Savings high growth markets are: Hong-Kong, Central & Eastern Europe (Poland, Czech
Republic, Slovakia and
Hungary), South-East Asia (Singapore, Indonesia, Philippine and Thailand), China, India,
Morocco, Mexico and Turkey.
Property & Casualty high growth markets are: Morocco, Mexico, Turkey, Gulf, Hong-Kong, Singapore, Malaysia, Russia, Ukraine and Poland (exc. Direct)
Direct markets are: AXA Global Direct (France, Belgium, Spain, Portugal, Italy, Poland, Korea and Japan), UK Direct operations.
[3] New Business Value is Group share.
[4] Operating Free Cash Flow corresponds to Underlying earnings
of Property & Casualty, International, Asset Management and
Banking activity in addition to Life & Savings normalized
expected cash flow from inforce net of new business investment (new
business required capital + new business strain)
[5] (net financing debt + perpetual subordinated debt) /
(shareholders' equity, excluding fair value recorded in
shareholders' equity + net financing debt).
[6] The difference with Euro 1,104
billion of total assets under management corresponds to
assets directly managed by AXA insurance companies.
[7] And Other Companies
[8] 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.
[9] Net of interest charges on perpetual subordinated notes
(TSDI) and perpetual deeply subordinated notes (TSS)
[10] Changes are adjusted for the Forex and reclassifications
between margins including the reclassification in France from technical margin to acquisition
expenses of charges in the context of the renewal of some Group
protection contracts in 2009. Full details are provided in the
activity report.
[11] Net of financial charges
[12] Including Euro 190 million
from release of the excess tax provision over exit tax on past
realised capital gains on fixed maturity securities in French
insurance companies.
[13] Excluding net unrealized gains on bank loans. Total
off-balance sheet net unrealized gains, including net unrealized
gains on bank loans, amounted to Euro 3.3
billion in FY09 and Euro 3.5
billion in FY10
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 full year 2010, IFRS
revenues amounted to Euro 91.0
billion and IFRS underlying earnings to Euro 3.9 billion. AXA had Euro 1,104 billion in assets under management as
of December 31, 2010.
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). AXA's American Depositary Share is also
quoted on the OTC QX platform under the ticker symbol AXAHY.
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 the section "Cautionary
statements" in page 2 of AXA's Document de Référence for the year
ended December 31, 2009, 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.
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