AXA holds its 2018 Investor Day
November 28, 2018
published at 8:45 AM CET
AXA is hosting today an Investor Day in London. The following topics will be presented:
- AXA Asia – Gordon Watson, CEO of AXA in Asia, will present his vision and strategy for AXA in Asia where he has attracted local and experienced talents to increase focus on Agency, Health, Brand and China
- AXA XL – Greg Hendrick, CEO of AXA XL, will present his vision and priorities, for the newly created AXA XL entity, built around portfolio optimization, profitable growth and volatility management and will share increased synergy targets, an earnings outlook for 2020 and an update on the 2018 natural catastrophe environment
- Capital management – Gérald Harlin, Deputy CEO and Group CFO, will provide a financial update, notably AXA’s new capital management policy, with an increased dividend payout range
Thomas Buberl
Chief Executive Officer of AXA
AXA has made significant progress on its Focus and Transform strategy in 2018. The simplification of the Group is delivering strong operational results and our transformation initiatives are further enhancing the already attractive profile of the Group.
In just 9 months, Gordon has attracted some of the best leaders in Asia with significant local expertise to propel AXA to become the next insurer of choice in the region. We have a clear strategy to grow and create value in Asia, by transforming our distribution with an increased focus on agency, pivoting towards Health and well-being, strengthening AXA’s brand recognition in the region and accelerating in China, with full control of AXA Tianping.
We have taken a major leap in shifting the profile of the Group by completing the acquisition of XL Group. AXA XL, under the leadership of Greg, has a clear vision for growth, as the most admired global commercial lines partner, known for innovative solutions and superior client service. The AXA XL leadership team has identified key levers to deliver strong value creation through profitable growth, in alignment with the AXA Group risk appetite.
The progress made in transforming the Group’s profile, along with our confidence in continued strong operational delivery across all geographies, has led us to review our capital management policy; notably increasing our dividend payout ratio range and lowering the upper bound of our Solvency II ratio target range. These changes, introduced by Gerald today, demonstrate our commitment to sustainable value creation for our shareholders.
AXA’s vision and direction are clear, and we are focused on execution. I have full confidence in the strong drive and commitment of our teams to continue to deliver on our strategy as we position AXA to grow and thrive in this new age of insurance.
Key Ambition 2020 financial targets update:
- AXA Asia
- 6% to 8% Annual Premium Equivalent* (APE) CAGR** 2018-2020
- 8% to 12% New Business Value* (NBV) CAGR** 2018-2020
- AXA XL
- Combined ratio*** at ca. 95% by 2020, assuming normalized natural catastrophes of ca. 4 points
- Increased annual earnings synergies to USD 0.5 billion, previously USD 0.4 billion
- Underlying earnings**** of ca. Euro 1.4 billion by 2020, assuming normalized natural catastrophes
- AXA’s new capital management policy (effective as of FY18)
- Increased dividend payout ratio range: 50% to 60%*****, previously 45% to 55%
- New Solvency II ratio****** target range: 170% to 220%, previously 170% to 230%
- Updated share buyback guidance: additional flexibility on share buyback even within the Solvency II ratio****** target range
- Increased Ambition 2020 Adjusted ROE**** target: 14% - 16%, previously 12% - 14%
- Debt gearing* target range of 25%-28% by 2020 reaffirmed
- Ambition 2020 underlying earnings per share (UEPS*) CAGR reaffirmed at 3%-7%
- Ambition 2020 cumulative Operating Free Cash Flow* reaffirmed at Euro 28-32 billion
*APE, NBV, debt gearing, underlying earnings per share (UEPS) and operating free cash flow are non-GAAP financial measures. For further information, please refer to “Important legal information and cautionary statements concerning forward-looking statements” on the last page of this press release.
**On a comparable basis
***Consistent with AXA’s definition, combined ratio is based on a gross earned premiums. Combined ratio is defined in the Glossary set forth in Appendix V to AXA’s Registration Document (pp. 433-437).
****Underlying earnings, adjusted earnings and adjusted ROE are alternative performance measures. For further information, please refer to “Important legal information and cautionary statements concerning forward-looking statements” on the last page of this press release.
*****Of adjusted earnings net of undated debt interest charges. For further information, please refer to “Important legal information and cautionary statements concerning forward-looking statements” on the last page of this press release.
******The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock and assuming US equivalence. For further information on AXA’s internal model and Solvency II disclosures, please refer to AXA Group’s SFCR for the year ended December 31, 2017, available on AXA’s website (www.axa.com). As in previous disclosures all AXA US entities are taken into account assuming US equivalence. As regards XL entities, AXA’s intention is to use equivalence for these entities, until the extension of the AXA Group internal model to XL operations is approved by AXA’s lead supervisor (ACPR). The intended use of equivalence as an interim integration method of XL entities in AXA Group’s Solvency II ratio is under review by ACPR.
Find out more
Contacts
Investor Relations
Investor Relations team
Media relations
Axa Media Relations