2005 Full Year Earnings
Analysts meeting - February 28, 2006
Analysts meeting
Summary of the presentation
- 1) Full Year 2005 Earnings - February 28, 2006
- 2) Disclaimer and Cautionary Statements Concerning Forward-looking Statements
- 3) Note
- 4) Table of contents - 2005 Key highlights
- 5) The highlight of the year was the launch of our company project Ambition 2012
- 6) 2012 began in 2005, with growth in line with long- term targets.
- 7) .and profitability improving in all segments
- 8) Underlying earnings growth remained very solid
- 9) Adjusted Earnings reflects the benefits of having maintained our equity exposure.
- 10) . and thereby driving the proposed dividend growth
- 11) We have also taken a number of strategic initiatives that should contribute to future growth
- 12) Table of contents - Review of financial performance
- 13) Sustained growth in Life & Savings and Asset Management
- 14) Strong positive net cash flows demonstrate AXA's ability to attract and retain clients
- 15) Strong 2005 underlying performance with double-digit growth
- 16) Life & Savings: robust 24% underlying earnings growth
- 17) Life & Savings underlying earnings growth was primarily driven by fees & revenues and technical margin
- 18) Life & Savings underlying earnings: fees and technical margins are driving the growth
- 19) Life & Savings: successful integration of MONY
- 20) Life & Savings: as mentioned in 1H05, non-recurring items in Japan positively impacted underlying earnings
- 21) Life & Savings: separate account(1) evolution bodes well for future growth
- 22) Asset Management: record net inflows of Euro 56 bn in 2005 and strongly improved cost income ratio
- 23) Asset Management: evolution of Assets Under Management bodes well for future growth
- 24) P&C earnings boosted by continued combined ratio and investment income improvement
- 25) P&C: better combined ratio due to improved loss ratio
- 26) 2006 renewals - another year of disciplined underwriting across our P&C operations.
- 27) P&C: Reserves ratios have probably reached a peak in 2005 .
- 28) International insurance: good performance in a challenging environment for the reinsurance business
- 29) International Insurance: combined ratios reflect disciplined underwriting in a challenging environment
- 30) Table of contents - Balance sheet & capital
- 31) In 2005, we continued to tightly manage our capital base
- 32) Shareholder's equity: strong growth driven by earnings and market improvements
- 33) Unrealized capital gains attributable to shareholders (after tax)
- 34) Strong and rapid deleveraging of the balance sheet gives us increasing flexibility
- 35) Overall, 2005 initiatives should have a positive impact on 2006 earnings per share
- 36) Table of contents - European Embedded Value
- 37) Strong Life & Savings 2005 EEV and New Business metrics (on a bottom-up market consistent approach)
- 38) Strong 2005 NBV and statutory earnings, as well as good European and Asian markets were dampened by poor US market and lower risk free rates
- 39) Total Return on Life & Savings EEV of 14% despite lower risk free rates across the board and an unfavorable US equity market in 2005
- 40) Volume, business mix and unit cost improvements were key drivers of NBV growth
- 41) Focus on the main NBV contributors: volume and business mix are driving the improvement
- 42) All countries except Germany contributed to the significant improvement of Life & Savings NBV
- 43) If we treat the AllianceBernstein units held by the US Life entity like any other investment, L&S EEV stands at Euro 33.1bn
- 44) Table of contents - Accelerating growth through differentiation
- 45) The highlight of the year was the launch of our company project Ambition 2012
- 46) Building differentiation is critical to reaching Ambition 2012
- 47) Differentiation through people
- 48) Differentiation through increasing focus on customers
- 49) We are accelerating product innovation and product reuse
- 50) We are improving our processes to deliver quality of service
- 51) We are upgrading and expanding our distribution networks
- 52) 2005 performance marks a first successful milestone on AXA's path towards reaching Ambition 2012.
- 53) .and 2006 is off to a promising start
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