AXA US LIFE & SAVINGS

Transcription

1 AXA US LIFE & SAVINGS Strong momentum in our business Investor Day November 20, 2014 Mark PEARSON AXA US CEO Member of AXA Group Management Committee

2 AMBITION AXA Delivering on our strategic aspirations UNDERLYING EARNINGS In USD millions NEW BUSINESS VALUE In USD millions New Business Value Margin 12% 13% 21% 27% 31% , H14 Ambition AXA 2015 GROSS ECONOMIC EXPENSES In USD millions H14 Ambition AXA 2015 NEW BUSINESS INTERNAL RATE OF RETURN 1,362 1,310 1,249 1, ,400 10% 11% 13% 16% 16% 15% H14 Ambition AXA H14 Ambition AXA 2015 D2 AXA Investor Day AXA US 20 November 2014

3 MIX OF BUSINESS More profitable and significantly lower capital/risk profile FY08 Total APE Mix 22% 15% 15% 48% Aligned distribution AXA Advisors now generating 74% of APE (53% in FY07) Fixed rate GMxB VA Employer Sponsored Non-GMxB VA Life Investment Products & Other Innovative fixed rate GMxB variable annuities now represent 2% (48% in FY08) 1H14 Total APE Mix 2% 33% 28% Separate account AUM increased 60% since 2008, to $113bn General account reduced 4% since 2008, to $58bn 11% 17% 9% Fixed rate GMxB VA Floating Rate GMxB VA New Non-GMxB VA 1 Employee Sponsored Non-GMxB VA Life Investment Products & Other D3 AXA Investor Day AXA US 20 November New Non GMxB Variable Annuity includes: Investment Edge and Structured Capital Strategies

4 RESHAPING THE SAVINGS BUSINESS 95% non-guaranteed or floating rate Individual Annuity APE Mix 12% 26% 22% 22% Aggressively managing mix third party distribution agreements managed to value requiring diversified product mix 100% 57% 47% 68% 72% Retirement Cornerstone our #1 selling annuity was priced when 10 year interest rates were 1.9% and has a floating rate guarantee linked to treasury rates 31% 27% 10% 5% H14 Fixed Rate GMxB Variable Annuity Floating Rate GMxB Variable Annuity Client value expanded portfolio offers wide range of options covering both performance and protection needs Investment options assets exposed to guarantees are >90% passive and have volatility management tools (ATM) Non-GMxB Variable Annuity D4 AXA Investor Day AXA US 20 November 2014

5 INFORCE MANAGEMENT Delivering value to policy holders whilst derisking our book Key Inforce Actions Million in USD Paid out to clients on top of account value GMxB / GMDB buyout offers Over 33k clients have accepted an early payout option Million in USD Reduction in IFRS Reserves Transition to passive funds Now 75% of legacy inforce AUM in passive funds 12 % Reduction in economic capital from inforce actions Volatility management tools Over 80% of legacy inforce AUM covered by volatility management tools (ATM) D5 AXA Investor Day AXA US 20 November 2014

6 ACTIVELY GROWING IN SELECT MARKETS Targeting select segments EMPLOYER SPONSORED (GROUP PENSION) #1 Player in 403(b) K-12 education market, currently serving 700,000 teachers Access to over 8,000 school payroll slots through over 850 dedicated AXA Advisors LIFE Over 1.4 million clients; ranked #3 in the overall variable universal life market Piloting predictive underwriting capabilities INVESTMENT PRODUCTS Over 350,000 clients; #6 top broker dealer by revenue High cross sell rates as accounts are often paired with other life and retirement products DISTRIBUTION AXA Advisors: aligned, nationwide advisory force of 5,000 Third Party: 1,000+ third party selling agreements Partnerships with US Property and Casualty carriers Sources: Financial Planning Magazine, 2014 ranking based on 2013 calendar year; LIMRA 2014: Quarterly NFP Report - Employer Sponsored and LIMRA Quarterly Sales Reports D6 AXA Investor Day AXA US 20 November 2014

7 LOOKING FORWARD Need for our products & services has never been greater In millions 281 US Population Growth % In USD millions 164 FY10 NBV Growth X 2.8 Turnaround of the US Business 473 FY13 Derisked and innovative variable annuity portfolio Aggressively managing mix New generation products make up an increasing share of our portfolio Comprehensive hedging program Reserve strengthening in 2009 through 2012 to reflect policyholder behavior Strategic Initiatives Percentages of Americans: Build direct-to-consumer distribution capabilities, now piloting Group Pension online enrollment 71% know saving for retirement is extremely or very important 53% are not contributing to a retirement plan 88% of annuity owners are very or somewhat confident about retirement Drive AXA Advisors productivity through enhanced advice tools and social media marketing Drive sales through US Property and Casualty carriers Offer new options for GMxB legacy clients including lump sum payment Sources: U.S. Census Bureau, U.S. Bureau of labor statistics (July 25, 2014); LIMRA 2014: «US Consumers Today: The Middle Market and Annuities: Love Them When You Know Them, Hate Them When You Don t D7 AXA Investor Day AXA US 20 November 2014

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9 BIOGRAPHY MARK PEARSON CEO, AXA US MEMBER OF AXA GROUP MANAGEMENT COMMITTEE Mark Pearson is the CEO of AXA US operations, and a member of both the AXA Group s Executive and Management Committee. He was previously President and Chief Executive Officer of AXA Japan from 2008 to 2011 after being appointed regional chief executive of AXA Asia Life in Mark Pearson joined AXA Group in 1995 after approximately 20 years in the insurance sector, holding several senior management positions at National Mutual and Friends Provident. D9 AXA Investor Day AXA US 20 November 2014