AXA FRANCE LIFE & SAVINGS

Transcription

1 AXA FRANCE LIFE & SAVINGS Successfully transforming Savings and Retirement Investor Day November 20, 2014 Olivier MARIEE AXA France Executive Vice President Savings and Wealth Management

2 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, 2013, 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.

3 Today s key messages A GROWING SAVINGS MARKET TRANSFORMING OUR BUSINESS WHILE INCREASING PROFITABILITY - DIVERSIFICATION TOWARDS UNIT-LINKED PRODUCTS - FOCUS ON FAST GROWING RETIREMENT MARKET - CREATING VALUE FROM INFORCE MANAGEMENT LOOKING FORWARD CONCLUDING REMARKS E3

4 A growing savings market Euro 1.5 trillion Life insurance savings assets Consistently high savings rate (15%) with a growing population Life insurance represents more than 1/3 of total saving assets Securities 29% On balancesheet savings Euro 3.8 trillion Savings assets 30% Life insurance 40% AXA France Life insurance savings assets Euro 109 bn Less punitive tax treatment 1 than other types of investments In Euro billion Life insurance premiums AXA France Rankings #2 In Unit-Linked Strong growth of retirement market with ageing population and withdrawal of state #6 In G/A Source: PAIR conseil «Les cahiers de l épargne (September 2014)» and FFSA (for rankings) E % to 23% tax charge on capital gain after 8 years vs up to ~60% for non regulated investments

5 Transforming our business while increasing profitability APE in Euro million 1,384 1,431 Share of UL in savings APE 18% 34% 37% 44% 8% 55% 14% 42% NBV margin 3% 17% Protection & Health Retirement Pre-tax Underlying Earnings Euro 458 million Euro 577 million Non retirement savings Scope: Retirement and non retirement savings MAIN LEVERS DIVERSIFICATION TOWARDS UNIT-LINKED PRODUCTS FOCUS ON FAST GROWING RETIREMENT MARKET CREATING VALUE FROM INFORCE MANAGEMENT E5

6 1 Diversification towards Unit-Linked products Successfully increased Unit-Linked share in savings Compelling value propositions to clients and distributors Unit-Linked share in savings premiums 1 Source: FFSA 17% 13% 28% 15% Market AXA Market AXA Innovative Unit-Liked offer based on customer profile Financial protection (structured products with third party guarantee and upside potential) Innovative asset classes: Axa Selectiv immo, packaged investment solutions, tailored offers Unit-Linked APE (in Euro million) Customer and distributor incentives Bonus Euro + additional crediting rate up to 40 bps on GA with +25% of UL Commission schemes for distributors Unit-Linked Net flows (in Euro billion) Raising advisor expertise Dedicated sales tools and processes Regular training and news flow Roadshow for customers, prospects and distributors Dedicated technical support to support sales force E6 1. On an APE basis, AXA share of Unit-Linked on APE is 18% in 2010 and 34% in 2013

7 GROUP RETIREMENT INDIVIDUAL RETIREMENT 2 Focus on fast growing retirement market LEADING POSITION IN TWO AXA GROWING FASTER STRONG PRESENCE WITH KEY PRODUCTS THAN THE MARKET CUSTOMERS #2 PERP 1 Market share #3 Madelin 2 12% 13% Strong initiative in sales promotion: «Happy hours» Lump sums blocked till the retirement Tax deductible 3 APE in Euro million Digital workshops Specific evolving asset allocation 23% CAGR Exit through an annuity Direct commercial presence enabling lead generation #1 Group Retirement Individual Group Telemarketing platform Defined benefit schemes for high level executives Defined contribution schemes, supplemental retirement plans open to all employees Exit through an annuity Market share 11% 21% Network modernization E7 Source of rankings and market share: FFSA 1. For employees 2. for self employed, includes social protection riders 3. up to 10% of taxable income

8 3 Creating value from inforce management EURO ~ 80 MILLION OF YEARLY ADDITIONAL RECURRING UNDERLYING EARNINGS 1 AS OF 2013 DRIVEN BY A SYSTEMATIC CUSTOMIZED REVIEW OF OUR INFORCE PORTFOLIO 1 FURTHER ENGAGE WITH OUR CUSTOMER BASE Promote additional individual contribution Increase share of Unit-Linked while delivering value for customers 14% 2 ADAPT TO CURRENT FINANCIAL & MARKET ENVIRONMENT Offer options to clients allowing for resilient investment margin despite decreasing interest rates Renegotiate financial advisors commissions 68% 3 TRANSFORM ORGANIZATION, PROCESSES AND IT Decommission legacy IT systems (moving from 2 to 1 single IT platform) Modernize IT and manage expense reduction 21% 4 UNLOCK AND ACCELERATE CASH FLOWS Capital & reserve optimization: + 0.2bn capital relief through reinsurance of 8bn savings portfolio Longevity risk transfer through a longevity swap Free Cash Flow impact E8 1. Additional recurring underlying earnings compared to 2010 baseline

9 Looking forward Launch of a new retirement income product «AXA Selectiv Revenus» Develop discretionary mandate to affluent customers Launch «Eurocroissance» with specific investment categories and tax advantages INCREASING OUR LEADERSHIP THROUGH PRODUCT INNOVATION DRIVING DIGITAL TRANSFORMATION Develop Self-service for customers Leverage distributors presence on social networks Propose a full digital experience to customers Build a telemarketing platform Foster multi-access - 20% Further cost rate reduction ENHANCING COMPETITIVENESS WHILE TACKLING THE REGULATORY CHALLENGES 360 approach to «best advice» (online tools, reporting, training, dedicated teams) between 2013 to 2020 representing Pricing in a Solvency II environment Euro 170 million Cost savings Aiming to be best in class in terms of advice and service ahead of mandatory commission disclosure E9

10 Concluding remarks Key takeaways Priorities going forward Growing savings and retirement needs in France create a massive opportunity Product innovation AXA France successfully adapted its business towards more Unit-Linked products and retirement solutions Digital transformation Our leadership position, efficient business model and offer innovation capabilities are key assets to seize these opportunities Enhancing competitiveness E10

11 Appendix

12 BIOGRAPHY OLIVIER MARIÉE AXA FRANCE EXECUTIVE VICE PRESIDENT SAVINGS AND WEALTH MANAGEMENT Since 2012, Olivier Mariée has been Executive Vice President of Savings and Wealth management businesses at AXA France. He was Marketing and Distribution Director for the Group from 2009 to 2012 and before that in the UK. Previously he was Director of Wealth management at AXA Investment Managers and Director of CRM and Inforce Management at AXA Japan. He joined AXA Group in 1992 as commercial manager within the A2P network. E12