Half Year 2006 Earnings
Analysts meeting - August 3, 2006
Analysts meeting
Summary of the presentation
- 1) Half Year 2006 Earnings - August 3, 2006
- 2) Cautionary statements concerning forward-looking statements
- 3) Note
- 4) Table of contents -1- First Half 2006 key highlights
- 5) After a strong 2005 performance, 1H06 constitutes another successful milestone on AXA's path towards reaching Ambition 2012
- 6) 1H06 performance: acceleration of top line growth, driving towards Ambition 2012 long-term targets.
- 7) .with profitability improving in all segments
- 8) Underlying earnings growth remained very strong
- 9) Adjusted earnings growth was fuelled by a high level of realized gains on the back of favorable equity markets in the first 4 months of 2006
- 10) In 1H06, we have taken a number of strategic initiatives to enhance growth and reduce volatility.
- 11) .and we have announced the proposed acquisition of Winterthur, which is a step further in AXA's growth story
- 12) Table of contents -2- Overview of 1H06 financial performance
- 13) Sustained business growth in Life & Savings and Asset Management
- 14) Good performance of P&C in a competitive pricing environment
- 15) Strong 1H06 underlying earnings performance with double-digit growth
- 16) P&C underlying earnings up 12% to Euro 780m, boosted by continued combined ratio and investment income improvement
- 17) P&C: better combined ratio due to further loss ratio improvement
- 18) International Insurance: divestiture of AXA RE reduces future earnings volatility
- 19) Asset Management: good AUM resilience owing to strong net inflows, despite flat equity markets and negative bond markets in 1H06
- 20) Asset Management: Strong net inflows and continued improvement in cost income ratio drove earnings growth
- 21) Life & Savings: double-digit underlying earnings growth in most countries
- 22) Life & Savings underlying earnings growth was driven by all margins
- 23) Life & Savings: margin improvement across the board
- 24) Life & Savings separate account evolution reflecting strong unit-linked new business flows
- 25) Life & Savings 1H06 New Business Value up 30%
- 26) Volume growth and unit cost improvement were key drivers of NBV growth
- 27) US, France, Japan and UK NBV benefited from volume and expenses, but business mix and change in risk free rates had varying impacts
- 28) From underlying earnings to net income
- 29) Table of contents -3- Balance sheet and capital as of June 30, 2006
- 30) Strong 1H06 net income was more than offset by the decrease in fair value of assets recorded through shareholders' equity, as a result of increased interest rates
- 31) Unrealized capital gains attributable to shareholders: still strong despite increased interest rates and flat equity markets
- 32) Continued deleveraging of the balance sheet
- 33) Table of contents -4- Update on Winterthur acquisition
- 34) Update on Winterthur acquisition's financing: successfully and promptly secured
- 35) Update on Winterthur integration planning: teams are already at work
- 36) Table of contents -5- Closing remarks
- 37) We are confident for the future
- 38) Half Year 2006 Earnings - Q&A
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