Axa Sa · EURONEXT:CS
Axa Sa — Investor Day (December 2013)
35 slides from Axa Sa's investor day presentation, Dec 4, 2013
Slide 1: Property & Casualty: Commercial Lines
Investor Day December 4, 2013 Property & Casualty: Commercial Lines Jean-Laurent Granier Chairman & CEO, AXA Global P&C Amanda Blanc CEO Commercial Lines, AXA UK Philippe Rocard CEO, AXA Corporate Solutions
Slide 2: Cautionary note concerning forward-looking statements
Cautionary note concerning forward-looking statements 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 be
Slide 3: Today's key messages
Today’s key messages Commercial lines are a key building block of Ambition AXA, already representing the majority of P&C underlying earnings and will continue to develop profitably Focus on AXA UK: a disruptive distribution strategy to reposition towards Micro and SME segments, which will be leverag
Slide 4: Commercial Lines at AXA
Investor Day December 4, 2013 Commercial Lines at AXA Jean-Laurent Granier Chairman & CEO, AXA Global P&C
Slide 5: Agenda
Agenda AXA is the #4 global commercial lines player, delivering steady performance AXA is well positioned to capture growth opportunities … … while growing profitability and monitoring exposures B5 – Investor Day – Property & Casualty Commercial lines – December 4, 2013
Slide 6: AXA Commercial Lines overview
AXA Commercial Lines overview #4 commercial lines player delivering steady performance AXA: #4 in the market Strong profitable growth track record FY12 Commercial Lines Gross Written Premiums Revenues In Euro billion In Euro billion CAGR +6% 12.5 13.3 11.4 12.0 11.9 11.6 Allianz n.a. 8.4 8.9 8.1 21.
Slide 7: AXA Commercial Lines overview
AXA Commercial Lines overview A global player with a comprehensive footprint Addressing all clients types Wide product range Corporate Specialties & Other Micro Workers 13% ~16% Enterprises Compensation ~25% 7% Motor Large Small and Construction 21% Enterprises Medium 6% ~20% Enterprises Liability P
Slide 8: Commercial lines market
Commercial lines market An expanding market opportunity A growing market … … segmented by client size 2010 market GWP ca. 47% of worldwide P&C market with revenues of Euro 393 billion in 2010 Corporate Micro Enterprises Turnover >€600m Turnover <€2m Growing market with 2 key drivers: 15% 21% Penetra
Slide 9: AXA is well positioned to capture growth opportunities
AXA is well positioned to capture growth opportunities … and explore new horizons Accelerate on current business … B9 – Investor Day – Property & Casualty Commercial lines – December 4, 2013
Slide 10: High growth markets
1 High growth markets Well positioned thanks to our large footprint and our agile hubs Well positioned thanks to our large AXA Gulf: a sub-regional hub supporting footprint further expansion Bahrain Commercial lines represent 60% of P&C Qatar 60% revenues in high growth markets … U.A.E Oman … with c
Slide 11: Mature markets: leveraging proprietary networks
2 Mature markets Leveraging our strong proprietary networks in European markets Leveraging our tied agents network AXA France has launched specific selection and training actions Tied agents segmentation by autonomy level 3%* Leverage a AXA operates leading proprietary strong asset distribution netw
Slide 12: Mature markets
2 Mature markets Market innovative offers targeting profitable clients AXA International Services Segmented offers Niches International coverage to accompany SMEs Food & Drink Pollution in their expansion abroad European SMEs benefit from a unique policy, Hotel Yachting in a single language and with
Slide 13: Beyond current frontiers
3 Beyond current frontiers Enter selected markets and seize emerging opportunities Invest in selected growth initiatives Complement coverage Enter new territories Address clients currently not covered: too large for P&C entities too small for AXA Corporate Solutions Colombia1 China Brazil Launch new
Slide 14: Securing profitability and monitoring exposures
Securing profitability and monitoring exposures Strict underwriting discipline Sustainable underwriting thanks to our Portfolio Management Process Embark overall organization in Define growth and profitability systematic yearly portfolio review objectives by segment Improve technical segmentation Cl
Slide 15: Geo-monitoring of accumulations
Securing profitability and monitoring exposures Geo-monitoring of accumulations Leveraging technology to geo-underwrite and price with regards to risk exposure (natural or man-made perils) Systematic use of perils customized heat maps, based on advanced understanding of covered perils (incl. freez
Slide 16: Illustrative example of exposure assessment
Securing profitability and monitoring exposures Illustrative example of exposure assessment in case of explosion or earthquake Modeled loss gross 1 ton TNT equivalent Pertes nettes moyennes s of reinsurance €250m 250 m€ €200m 200 m€ €150m 150 m€ 10 tons TNT equivalent €100m 100 m€ €50m 50 m€ €20m 20
Slide 17: Today's key messages
Today’s key messages Commercial lines are a key building block of Ambition AXA, already representing the majority of P&C underlying earnings and will continue to develop profitably Focus on AXA UK: a disruptive distribution strategy to reposition towards Micro and SME segments, which will be leverag
Slide 18: AXA UK Commercial Lines
Investor Day December 4, 2013 AXA UK Commercial Lines Amanda Blanc CEO Commercial Lines, AXA UK
Slide 19: In 2010, AXA Commercial UK was a challenged business
In 2010, AXA Commercial UK was a challenged business, with difficulties to turn around AXA Commercial UK1 back in 2010 Weaknesses to be tackled … Declining volumes with a volatile profitability Confusing broker segmentation leading to anti- selection In GBP million 900 770 Inefficient organizati
Slide 20: A differentiated, multi-channel distribution strategy built upon SME expertise
Our answer: a differentiated, multi-channel distribution strategy built upon expertise in SME Focusing on SME, the following trends were … creating competitive advantage through a expected … multi-channel distribution Macro economy Weak economic outlook Recognize the consumer trends towards 1 Direct
Slide 21: Foster profitable growth by aggressively developing SMEs and improving efficiency
Foster profitable growth by aggressively developing SMEs and improving efficiency Grow in a flat market while improving … thanks to the implementation of an efficient profitability … distribution model Revenues In GBP million 1,200 Grow SME through low cost models – embracing digital capabilities 77
Slide 22: Excellent progress in our strategy's execution
Excellent progress in our strategy’s execution across all distribution channels since 2010 1 Direct 2 Simple SME Launch of new on-line proposition with 5 new products Launch of Market leading digital platform Developed new Digital capabilities 7 brand new products deployed in 18 months Ext
Slide 23: Halfway into the turnaround with profitability and growth ahead of plan
Halfway into the turnaround with profitability and growth ahead of plan Excellent progress in all channels Strong revenue growth 10 quarters of consecutive growth Revenues In GBP million Over GBP 20 million cost savings +21% Entirely new management team 725 601 Re-balanced distribution Strengthened
Slide 24: Our outlook for the market
Our outlook for the market specialisation market competition SME confidence local efficiency broker consolidation professionalism rates claims consistency digital customer transparency distribution data economy regulation climate change segmentation commissions SME direct B24 – Investor Day – Proper
Slide 25: Conclusion: sponsoring the global SME initiative
Conclusion: sponsoring the global SME initiative Lessons from the UK will be leveraged at Group level Focus on SME Distribution Strengthening broker propositions Developing new digital trading channels Re-use of IT platforms Professional trading expertise B25 – Investor Day – Property & Casualty Com
Slide 26: AXA Corporate Solutions
Investor Day December 4, 2013 AXA Corporate Solutions Philippe Rocard CEO, AXA Corporate Solutions
Slide 27: Ability to grow a diversified and balanced portfolio
AXA Corporate Solutions has demonstrated ability to grow a diversified and balanced portfolio… A well balanced and diversified portfolio Revenues FY12: Euro 2.1 billion Targeting large corporate clients for 15 years Turnover above €600m Motor Other 9% 3% Marine Extended coverage of the market Constr
Slide 28: Maintaining a strong underwriting discipline
… while maintaining a strong underwriting discipline Low volatility in technical performance Combined ratio of corporate insurance subsidiaries 125% 2005 2008 2011 Katrina China earthquake Japan, New Zealand 120% hurricane earthquakes Thailand floods 115% Irene hurricane 110% 105% 100% 95% 90% 85% F
Slide 29: Pricing tools to optimize volatility of technical result
Our pricing tools aim at optimizing the volatility of our technical result Optimization of share of accounts aims at minimizing loss ratio volatility Volatility of each account assessed against the existing portfolio High Account with concentrated Depends on trade sectors, insured values, insuranc
Slide 30: Strong profitability track record and diversified risk profile
Our strong profitability track record is supported by a well diversified risk profile Cumulative Euro 1.0bn underlying earnings Well diversified risk profile generated since 2004 Underlying earnings In Euro million Real estate 10% Alternative assets 5% Listed equities 142 Government bonds 6% 30% Cas
Slide 31: Journey towards better serving clients while enhancing growth and profitability
Our journey towards better serving our clients while enhancing our growth and profitability profile Tap new markets offering … foster quality of service as a profitable growth opportunities … key competitive advantage … Continue geographical Leverage service offering for risk expansion prevention Gl
Slide 32: Tap into new markets offering profitable growth opportunities
Tap into new markets offering profitable growth opportunities Strengthen footprint and enter new geographies New segments and products Pursue growth above 15% p.a. in high growth markets which already represent 1/6th of the revenues Increase our penetration in the Upper-Middle Market1 Brazil S
Slide 33: Partnering with commercial lines underwriters of AXA entities
Partnering with commercial lines underwriters of AXA entities to accelerate in commercial lines Complement footprint in high growth markets Close the gaps in countries where AXA operates Set up of 19 partnerships with AXA entities, among Identify segments not addressed: too large for AXA which:
Slide 34: Q&A
Q&A B34 – Investor Day – Property & Casualty Commercial lines – December 4, 2013
Slide 35: Biographies
Biographies Jean-Laurent Granier Since January 2010, Jean-Laurent Granier has been Chief Jean-Laurent is a graduate of Ecole Polytechnique and ENSAE and Executive Officer of the Mediterranean and Latin America region an actuary. He joined UAP in 1990 until its merger with AXA in and a member of