AXA holds its 2018 Investor Day

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

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.