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AXA Earnings Release 2015

Feb 25, 2016

1135_iss_2016-02-25_dc562368-3686-422e-8fe7-8389023b47f1.pdf

Earnings Release

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PARIS, FEBRUARY 25, 2016

FY15 Earnings – Successful delivery on Ambition AXA

  • Underlying earnings per share up 10% and adjusted earnings per share up 9%
  • Dividend of Euro 1.10 per share, up 16% from FY14, to be proposed by the Board of Directors
  • Solvency II ratio of 205%, up 4 pts from FY14

On a comparable basis (at constant Forex):

  • Total revenues up 1% to Euro 99 billion
  • Life & Savings net inflows at Euro +9.6 billion
  • Underlying earnings up 2% to Euro 5.6 billion
  • Adjusted earnings up 2% to Euro 6.0 billion
  • Net income up 3% to Euro 5.6 billion

"We are pleased to have successfully delivered on Ambition AXA, which has made the Group more resilient, efficient and agile, from the balance sheet to the brand. It has been a collective achievement and I would like to warmly thank our clients for their trust and our teams and distributors for their unwavering commitment", said Henri de Castries, Chairman and CEO of AXA.

"2015 was yet another year of strong earnings for AXA, with underlying earnings reaching their highest level ever at Euro 5.6 billion. In this context, the Board of Directors is proposing a dividend of Euro 1.10 per share, an increase of 16% versus last year, which corresponds to a payout ratio of 47%, in line with the new guidance of the Group."

"In Life & Savings, we continued to grow our earnings, benefiting from our disciplined business mix, and notably we preserved our investment margin despite the low rate environment. In Property & Casualty, we maintained our underwriting discipline which translated into a strong technical result. We also continued to see strong positive net flows in Asset Management. Our gearing and solvency ratios remained well within our target range, underlining the strength of our balance sheet."

"Following the successful completion of Ambition AXA, the Group comes out of the 2011-2015 period stronger than ever despite the headwinds encountered. We remained focused on protecting our clients and in successfully increasing their satisfaction. In order to achieve sustained growth and continue to deliver value for all of our stakeholders, we are actively engaged in multiple initiatives to transform and adapt the Group to the rapid pace of technological change and to the evolving expectations of our clients. This, combined with our financial strength, means we are well positioned to take up this challenge."

Key figures (In Euro million unless otherwise noted)
FY14 FY15 Change on a
reported basis		 Change on a
comparable basis
Total revenues 91,988 98,534 +7% +1%
L&S APE1,2 6,477 7,376 +14% +5%
L&S New Business Value margin (%) 34.3% 33.8% -0.5 pt -1.0 pt
P&C all-year combined ratio (%) 96.9% 96.2% -0.7 pt -0.6 pt3
FY14 FY15 Change on a
reported basis		 Change at
constant Forex
Underlying earnings 5,060 5,574 +10% +2%
Adjusted earnings 5,503 6,008 +9% +2%
Net income 5,024 5,617 +12% +3%
Group Operating Free Cash Flows (Euro bn) 5.5 5.8
14.1%
Adjusted ROE (%) 14.5% 23% -0.4 pt
Debt gearing (%)
Solvency II ratio4
(%)		 24%
201%		 205% -1 pt
+4 pts

FY15 key highlights

Total revenues5 were up 1% on a comparable basis and up 7% on a reported basis, benefiting from a positive Forex effect.

  • Life & Savings revenues were stable as growth in Protection & Health6 , Mutual Funds and Unit-Linked was offset by lower G/A7 Savings revenues in line with strategy;
  • Property & Casualty revenues increased by 1%, mainly driven by 2.8% tariff increases on average, partly offset by lower volumes following pruning actions;
  • International Insurance revenues increased by 7%, reflecting the strong growth at AXA Assistance mainly with third party clients;
  • Asset Management revenues increased by 1%, mainly driven by higher management fees as a result of higher average assets under management at AXA IM partly offset by lower performance and distribution fees at AB.

Life & Savings New Business Volume (Annual Premium Equivalent, APE) was up 5% on a comparable basis, and up 14% on a reported basis, benefiting from a positive Forex effect. The 5% increase on a comparable basis was mainly driven by (i) Unit-Linked due to the on-going success of hybrid8 and pure Unit-Linked products in Continental Europe, Japan and South-East Asia, India & China, as well as higher corporate pension scheme sales in the UK, partly offset by lower sales in Hong Kong as a result of unfavorable regulatory changes, and (ii) Protection & Health as strong growth in France and South-East Asia, India & China more than offset the impact of the continued repositioning of the Group Life product mix in Switzerland initiated in 2014. This was partly offset by (iii) lower sales in G/A Savings, mainly driven by the non-repeat of two large contracts in French Group Retirement business sold in 2014 and by the strategic focus on Unit-Linked and Protection & Health products.

Life & Savings net inflows amounted to Euro +9.6 billion compared to Euro +4.0 billion in FY14. The main contributors were (i) Protection & Health at Euro +5.9 billion mainly in France, Japan and Hong Kong and (ii) Unit-Linked at Euro +5.7 billion, driven mainly by the UK, France and Germany, partly offset by continuing net outflows in (iii) G/A Savings at Euro -2.4 billion, in line with strategy.

Life and Savings New Business Value margin decreased by 1 point to 34%, as an overall more favorable business mix and lower unit costs were offset by the negative impacts from lower interest rates in Switzerland and in the US as well as from high corporate pension scheme sales in the UK. New Business Value (NBV2,9 ) increased by 2% to Euro 2.5 billion.

Property & Casualty current year combined ratio improved by 0.2 point to 97.3%. All-year combined ratio improved by 0.6 point to 96.2%.

  • Underlying earnings2 were up 2% to Euro 5.6 billion, mainly driven by Life & Savings and Asset Management, partly offset by Property & Casualty.
  • Adjusted earnings2 were up 2% to Euro 6.0 billion, mainly driven by higher underlying earnings.
  • Net income was up 3% to Euro 5.6 billion mainly driven by higher adjusted earnings.

SALES

PROFITABILITY

EARNINGS

Page 2/22

Shareholders' equity was Euro 68.5 billion, up Euro 3.3 billion vs. December 31, 2014
mainly driven by (i) net income contribution and (ii) favorable forex movements, partly
offset by (iii) a decrease of unrealized capital gains10 attributable to higher interest rates
and
corporate spreads widening and (iv) dividend payment.
Solvency II
ratio
at 205%, up 4 points vs. December 31, 2014 mainly driven by a strong
operating return contribution,
net of dividend proposed by the Board of Directors, partly
offset by financial market impacts.
Solvency I
ratio
was at 246%.
Debt gearing was at 23% down 1 pt vs. December 31, 2014, in line with our objective.
Adjusted ROE stood at 14.1%
down 0.4
point vs. FY14 as higher adjusted earnings
more than offset by higher average adjusted shareholders' equity11
were
Group operating Free Cash Flows were Euro 5.8
billion
on Solvency I basis, up Euro
0.3 billion vs. FY14.
A dividend of Euro 1.10 per share (up 16% vs. FY14) will be proposed at the
Shareholders' Annual General Meeting on April 27, 2016. This represents a pay-out ratio
of 47% of adjusted earnings, net of the interest charges on undated debt.
Main transactions between January 1, 2015
and December 31, 2015:
Completion of the acquisition of a 7% stake in Africa Re on March 17, 2015;
Completion of the acquisition of 100% of BRE Insurance, mBank's Property & Casualty
subsidiary in Poland, and launch of the partnership with mBank on March 30, 2015;
Completion of the acquisition of the private medical insurance business of Simplyhealth
in the UK on August 3, 2015;
Completion of the sale of the retirement schemes business in Hong Kong on September
1, 2015;
Agreement to
dispose
of AXA's Portuguese operations to Ageas
signed
on October 16,
2015. Completion
of the transaction is expected during the first semester
of 2016,
subject to required regulatory approvals;
Announcement of the acquisition of 100% Charter Ping An Insurance by AXA Philippines
on November 5, 2015. Finalization is subject to customary closing conditions and is
expected during the first semester of 2016;
Completion of the
partnership with Commercial International Bank in Egypt and
acquisition of Commercial International Life
on November 30, 2015;
Increase of the participation of AXA in its
insurance
joint-ventures in India from 26% to
49% announced on December 1, 2015;
Completion of the acquisition
of Genworth Lifestyle Protection Insurance on December 2,
2015;
Announcement of the acquisition of Liberty Ubezpieczenia, the Polish P&C operations of
Liberty Mutual Insurance Group, on December 18, 2015. Completion of the transaction is
subject to customary closing conditions and is expected in the third quarter of 2016;
Completion of the acquisition of the P&C large commercial risks insurance subsidiary of
SulAmérica in Brazil on December 28, 2015.

BLANCE SHEET

Page 3/22

RATINGS

On January 20, 2016, Moody's Investors Services reaffirmed the 'Aa3' insurance financial strength ratings of AXA's principle insurance subsidiaries, maintaining a stable outlook

  • On October 29, 2015, S&P reaffirmed long-term ratings on AXA Group principle subsidiaries at 'A+', maintaining a positive outlook.
  • On October 6, 2015, Fitch reaffirmed all AXA entities' insurer financial strength ratings at 'AA-', maintaining a stable outlook.

All comments are on a comparable basis for activity indicators (constant Forex, scope and methodology), and at constant Forex for earnings, unless otherwise specified.

Non-GAAP measures such as underlying earnings and adjusted earnings are reconciled to net income on page 20 of this release. AXA's FY15 financial statements have been examined by the Board of Directors on February 24, 2016 and are subject to completion of audit procedures by AXA's statutory auditors.

Page 4/22

Life & Savings

Key figures Revenues Underlying Earnings
In Euro billion FY14 FY15 % change FY14 FY15 % change
Mature markets 52.1 55.2 0% 2.7 3.0 +3%
High growth markets 3.2 4.0 +10% 0.5 0.5 +4%
Total 55.3 59.2 0% 3.1 3.5 +3%
Key figures Pre-tax Underlying earnings APE NBV margin
In Euro billion FY14 FY15 %
change12		 FY14 FY15 %
change		 FY14 FY15
Protection & Health 2.1 2.3 +2% 2.4 2.7 +4% 55% 52%
G/A Savings 0.8 0.8 -4% 1.0 0.9 -7% 14% 19%
Unit-Linked 1.0 1.3 +10% 2.3 2.8 +12% 31% 31%
Mutual funds & other 0.1 0.1 +7% 0.8 0.9 +7% 6% 6%
Total 4.1 4.5 +3% 6.5 7.4 +5% 34% 34%
of which mature markets 3.6 3.9 +3% 5.3 6.1 +6% 31% 30%
of which high growth markets 0.5 0.6 0% 1.1 1.3 +1% 49% 51%

New Business APE was up 5% on a comparable basis and up 14% on a reported basis, benefiting from positive Forex effect. The 5% growth on a comparable basis was mainly driven by (i) Unit-Linked due to the on-going success of hybrid and pure Unit-Linked products in Continental Europe, Japan and South-East Asia, India & China, as well as higher corporate pension scheme sales in the UK, partly offset by lower sales in Hong Kong as a result of unfavorable regulatory changes, and (ii) Protection & Health as strong growth in France and South-East Asia, India & China more than offset the impact of the continued repositioning of the Group Life product mix in Switzerland initiated in 2014. This was partly offset by lower sales in (iii) G/A Savings, mainly driven by the non-repeat of two large contracts in French Group Retirement business and by the strategic focus on Unit-Linked and Protection & Health products. Mutual funds & other increased following the exceptional sale of a large contract in France in 1Q15.

In mature markets, APE was up 6%, mainly driven by France, the UK and Japan, partly offset by Switzerland. In high growth markets, APE increased by 1%, as strong growth in South-East Asia, India & China was partly offset by regulatory changes impacting negatively Unit-Linked sales in Hong Kong and by the non-repeat of sales of large Group Protection accounts in Mexico in 2014.

NBV margin decreased by 1 point to 34%, as the negative impacts from lower interest rates in Switzerland and in the US as well as high corporate pension scheme sales in the UK were offset by an overall more favorable business mix and lower unit costs.

As a consequence, NBV increased by 2% to Euro 2.5 billion.

Pre-tax underlying earnings increased by 3% on a comparable basis, or 10% on a reported basis, mainly driven by (i) France, from higher loadings on premiums reflecting business growth and positive prior year reserve developments in Group Protection, as well as (ii) higher

Page 5/22

contributions from Belgium, Germany, Japan and the UK, partly offset by (iii) the US, where lower Protection & Health results stemming mainly from accelerated amortization of deferred premium loadings and DAC were partly offset by higher results from both indexed products and Variable Annuity GMxB products.

Unit-Linked APE (38% of total) was up 12%, mainly driven by (i) Continental Europe following the success of hybrid products (mainly in France, Germany and Italy) and higher sales of pure Unit-Linked products (mainly in Italy) and structured products (mainly in France), (ii) the UK with high corporate pension scheme sales, (iii) Japan and (iv) South-East Asia, India & China. This increase was partly offset by the negative impact of regulatory changes in 2015 in Hong Kong.

Pre-tax underlying earnings were up 10%, mainly driven by (i) higher loadings and management fees, mainly in MedLA and the US as a result of higher average separate account balances, (ii) lower expenses and (iii) higher investment margin mostly in the US on indexed products due to a higher average asset base, partly offset by (iv) reserve strengthening in the US on GMxB Variable Annuity products for lapses and other policyholder behavior assumption changes. Overall, the contribution from US GMxB Variable Annuity products was higher as an improved hedge margin and lower expenses more than offset the reserve strengthening.

Protection & Health APE (36% of total) was up 4%, mainly driven by higher sales of Group business in France as well as strong sales in South-East Asia, India & China. This was partly offset by the continued repositioning of the Group Life product mix in Switzerland initiated in 2014.

Pre-tax underlying earnings were up 2%, mainly driven by (i) higher net technical margin from positive prior year reserve developments mainly in France and the US, (ii) higher investment margin as lower investment income was more than offset by a decrease in policyholder participation, mainly in Switzerland, Hong Kong and Germany, (iii) higher loadings on premiums mainly in France, Mexico and Hong Kong resulting from business growth, partly offset by an accelerated amortization of deferred premium loadings. This was partly offset by higher expenses mainly in France in line with business growth and in the US due to an accelerated DAC amortization.

G/A Savings APE (13% of total) was down 7%, mainly in (i) France, reflecting the non-repeat of large contracts sales in 2014 and the commercial focus on Unit-Linked business, (ii) Belgium, Germany and Italy in line with the strategic focus on Unit-Linked and Protection & Health products. This was partly offset by (iii) the successful launch of a new generation product in Hong Kong.

Pre-tax underlying earnings were down 4% mainly due to (i) lower investment margin due to lower reinvestment yields and (ii) lower net technical margin mainly due to unfavorable annuitization assumption changes in Japan partly offset by Switzerland.

Page 6/22

On a post-tax basis, underlying earnings grew by 3% on a comparable basis and by 12% on a reported basis, mainly driven by higher pre-tax underlying earnings. Tax one-offs were positive and amounted to Euro 202 million in FY15, compared to Euro 184 million in FY14, both coming mainly from the US.

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Property & Casualty

Key figures Revenues
(In Euro billion)		 FY15 price effect
FY14 FY15 % change % change
Personal 17.2 18.1 +2% +3.2%
Commercial 12.1 13.0 0% +2.4%13
Other 0.2 0.2 +49%
Total 29.5 31.3 +1% +2.8%
Key figures Revenues
(In Euro billion)		 Current year combined ratio All-year combined ratio
FY14 FY15 % change FY14 FY15 % change3 FY14 FY15 % change3
Mature markets 22.4 23.4 0% 97.1% 96.3% -0.8 pt 96.1% 94.0% -2.1 pts
Direct 2.4 2.7 +7% 99.7% 99.3% -0.4 pt 98.2% 98.0% -0.2 pt
High growth
markets		 4.7 5.2 +3% 98.7% 100.9% +2.6 pts 100.2% 105.6% +6.5 pts
Total 29.5 31.3 +1% 97.6% 97.3% -0.2 pt 96.9% 96.2% -0.6 pt

Revenues were up 1% on a comparable basis, and up 6% on a reported basis, mainly driven by a positive price effect of 2.8% on average, partly offset by lower volumes mainly in Spain and Turkey from pruning actions.

  • Mature markets revenues were stable, as tariff increases (mainly in France, the UK & Ireland and Germany) were offset by lower volumes mainly as a result of pruning actions and selective underwriting, notably in Motor in Spain and Construction in France.
  • High growth markets revenues increased by 3%, mainly driven by higher volumes in Asia. In Turkey, revenues were stable overall, increasing by 11% excluding Motor third party liability where significant pruning measures were undertaken to restore profitability. On this Turkish Motor TPL portfolio, tariffs have more than doubled over the year with a significant negative volume and mix effect.
  • Direct revenues were up 7% mostly driven by strong volume growth mainly in the UK, France and Japan, and tariff increases, mainly in the UK, South Korea, Italy and France.

Personal lines net new contracts amounted to -534k, driven by Motor (-519k) and Household (-14k). This was mainly due to continued selective underwriting in Turkey (-846k) and Spain (-333k), partly offset by business growth in Direct (+366k) and continued momentum in Asia (+290k).

Current year combined ratio improved by 0.2 point to 97.3% driven by 0.3 point improvement in current year loss ratio, partly offset by 0.1 point deterioration in expense ratio.

Current year loss ratio improvement was driven by (i) lower natural catastrophe charges, (ii) positive price effect across the board combined with (iii) a lower frequency, mainly in the UK & Ireland, France and Spain, more than offsetting (iv) a higher severity stemming from higher average costs partly driven by evolutions in regulation and jurisprudence on bodily injury and material claims (mainly in Turkey), as well as higher large losses in commercial lines;

Page 8/22

Expense ratio deterioration was mainly driven by an increase in acquisition expense ratio notably as a consequence of negative volume effect in the MedLA region. This was partly offset by a decrease in administrative expense ratio as a result of cost savings programs.

Prior year reserve developments increased by 0.4 point to -1.0 point. Positive developments in mature markets more than offset the adverse prior year reserve developments in Turkey following 2015 evolutions in regulation and jurisprudence on bodily injury and material claims in Motor third party liability.

As a result, the all-year combined ratio improved by 0.6 point to 96.2%.

Investment result deteriorated by 8% to Euro 2.0 billion mainly due to the non-repeat of FY14 exceptional dividends from mutual funds of Euro 71 million in France combined with lower reinvestment yields.

Underlying earnings were down 1% on a comparable basis to Euro 2.2 billion, and up 3% on a reported basis. The decrease on a comparable basis reflects the lower investment result, partly offset by an improved technical result.

Page 9/22

Asset Management

Key figures Revenues Underlying Earnings Average Assets under
Management
(Euro billion)
In Euro million FY14 FY15 % change FY14 FY15 % change FY14 FY15 % change
AXA IM 1,151 1,242 +4% 211 234 +5% 554 618 +7%
AB 2,175 2,580 0% 193 224 -2% 371 453 +3%
Total 3,326 3,822 +1% 403 458 +1% 925 1,071 +6%

Asset Management net inflows amounted to Euro +45 billion. AXA IM recorded Euro +42 billion of net inflows, mainly driven by Asian Joint Ventures (Euro +34 billion or Euro +13 billion on a Group share basis), as well as by real estate, infrastructure and fixed income products. AB recorded Euro +3 billion of net inflows, mainly from the institutional channel.

Assets under management amounted to Euro 1,124 billion as of December 31, 2015, up 4% from December 31, 2014, as favorable Forex impact and higher net inflows at both AXA IM and AB more than offset the Euro -33 billion scope effect mainly related to a partial withdrawal of Friends Life assets.

Average assets under management were Euro 1,071 billion, up 6% driven by both AXA IM and AB.

Asset Management revenues were up 1% mainly driven by higher management fees from AXA IM as a result of higher average assets under management. This was partly offset by stable revenues at AB from lower performance and distribution fees.

Underlying earnings were up 1% to Euro 458 million on a comparable basis and up 14% on a reported basis, mainly driven by increased revenues at AXA IM. This was partly offset by lower performance and distribution fees at AB.

Page 10/22

Adjusted Earnings

Adjusted Earnings increased by 2% to Euro 6.0 billion, mainly driven by higher underlying earnings.

Net Income

Net Income was up 3% to Euro 5.6 billion, mainly driven by higher adjusted earnings.

Cost Savings

AXA delivered Euro 1.9 billion of cost savings since the launch of Ambition AXA, of which Euro 0.3 billion in FY15.

Operating Free Cash Flows

Group operating Free Cash Flows were Euro 5.8 billion on a Solvency I basis, up Euro 0.3 billion vs. FY14.

Solvency II

Solvency II ratio was at 205%, up 4 points vs. December 31, 2014 mainly driven by a strong operating return contribution, net of dividend proposed by the Board of Directors, partly offset by financial market impacts.

Group Embedded Value (EV)

Group EV was at Euro 51.2 billion, up Euro 4.1 billion vs. FY14, or Euro 21.1 per share. The 18% operating return on opening Group EV was driven by strong performances across all business lines.

Dividend

A dividend of Euro 1.10 per share (up 16% vs. FY14) will be proposed at the Shareholders' Annual General Meeting on April 27, 2016. The dividend is expected to be paid on May 10, 2016 with an exdividend date of May 6, 2016. This represents a pay-out ratio of 47% of Adjusted Earnings, net of the interest charges on undated debt.

General Account Invested Assets and Asset & Liability Management

Insurance invested assets amounted to Euro 552 billion13 at December 31, 2015, up from Euro 523 billion as of December 31, 2014. The change mainly arises from the impact of the depreciation of the Euro against major currencies and from positive net flows, partly offset by the impact of higher interest rates on fixed income assets. The asset allocation remained broadly stable, mostly geared towards government bonds (average rating in the AA range) and high quality corporate bonds (average rating in the A range).

Investments in Oil & Gas and Mining, Metals & Steel fixed income assets remained limited, amounting respectively to 2% and 1% of total General Account invested assets.

Page 11/22

Asset yields on the investment portfolio were 3.6% in Life & Savings and 3.6% in Property & Casualty benefiting from average asset durations of 8.0 years and 5.0 years respectively. On the Life & Savings side, this compared well to the average guaranteed rate of 2.0% that led to an investment margin of 79bps in FY15, in line with the guidance of 70 to 80 bps.

In FY15, Life & Savings and Property & Casualty entities reinvested Euro 65 billion in fixed income assets at an average yield of 2.1%, well above the Life & Savings new business average guaranteed rate of 0.5%.

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Notes

    1. Annual Premium Equivalent (APE) represents 100% of new business regular premiums + 10% of new business single premiums. APE is Group Share.
    1. Underlying Earnings are Adjusted Earnings, excluding net realized capital gains attributable to shareholders. Adjusted Earnings represent Net income before the impact of exceptional and discontinued operations, intangibles amortization and other, and profit or loss on financial assets (classified under the fair value option) and derivatives.

APE, NBV, Adjusted Earnings and Underlying Earnings are non-GAAP measures and as such are not audited, may not be comparable to similarly titled measures reported by other companies and should be read together with our GAAP measures. Management uses these non-GAAP measures as key indicators of performance in assessing AXA's various businesses and believes that the presentation of these measures provides useful and important information to shareholders and investors as measures of AXA's financial performance.

    1. Changes are adjusted for Forex and changes related to scope with the acquisition of Colpatria in Colombia in 2014 and the deconsolidation of Ukraine in 2015.
    1. The Solvency II ratio is based on AXA's internal model calibrated based on adverse 1/200 year shock and assuming US equivalence. AXA's internal model was approved by ACPR on November 12, 2015. Solvency II took effect January 1, 2016.
    1. Including Banking revenues which were up 10% to Euro 621 million in FY15 (vs. Euro 564 million in FY14).
    1. General Account Protection and Health.
    1. General Account.
    1. Hybrid products are savings products allowing clients to invest in both Unit-Linked and General Account funds.
    1. New Business Value is group share.
    1. Excluding Forex, minority interests and other.
    1. Average shareholders' equity excluding undated debt and reserves related to change in fair value.
    1. Changes are adjusted for Forex and changes related to scope with the acquisition of Colpatria in Colombia in 2014.
    1. Renewals only.
    1. FY15 invested assets referenced in page 57 of the financial supplement are Euro 779 billion, which include notably Euro 195 billion of Unit-Linked assets and Euro 36 billion related to the banking segment.

Definitions

Life & Savings high growth markets: APE and NBV: China, Czech Republic, Hong Kong, India, Indonesia, Mexico, Morocco, Philippines, Poland, Singapore, Thailand and Turkey; Revenues: Colombia, Czech Republic, Hong Kong, Indonesia (excl. bancassurance entity), Mexico, Morocco, Poland, Singapore, Slovakia and Turkey.

Property & Casualty high growth markets: Revenues: Colombia, the Gulf Region, Hong Kong, Malaysia, Mexico, Morocco, Singapore, Thailand, and Turkey.

NORCEE (Northern, Central and Eastern Europe – L&S and P&C): Belgium, Central & Eastern Europe (Poland (L&S only), Czech Republic and Slovakia), Germany, Luxembourg, Russia (P&C only) and Switzerland; Luxembourg APE and NBV are not modeled; Russia (RESO) is not included in revenues due to consolidation under equity method.

South-East Asia, India and China (L&S): APE and NBV: China, India, Indonesia, Philippines, Singapore and Thailand; Revenues: Singapore and non-bancassurance subsidiaries in Indonesia; China, India, Philippines, Thailand and bancassurance business in Indonesia are not included in revenues due to consolidation under equity method; Malaysian operations are not consolidated.

MedLA (Mediterranean and Latin American Region – L&S and P&C): Colombia, Greece, the Gulf region (P&C only), Italy, Mexico, Morocco, Portugal, Spain and Turkey. Lebanon and Nigeria are not included in revenues due to consolidation under equity method (P&C only).

Asia (P&C): Hong Kong, Malaysia, Singapore and Thailand. China and India are not included in revenues due to consolidation under equity method. Indonesian operations are not consolidated.

Direct (P&C): AXA Global Direct (Belgium, France, Italy, Japan, Poland, Portugal, South Korea and Spain), UK Direct operations. In France, Natio is not included in revenues due to consolidation under equity method.

Hungary L&S has been deconsolidated from the Group accounts starting January 1, 2015 following the disposal.

AXA UA (Ukraine), which will continue to run its current operations, has been deconsolidated since January 1, 2015 due to non-materiality.

NOTES /

ABOUT THE AXA GROUP

The AXA Group is a worldwide leader in insurance and asset management, with 161,000 employees serving 103 million clients in 59 countries. In 2015, IFRS revenues amounted to Euro 99.0 billion and IFRS underlying earnings to Euro 5.6 billion. AXA had Euro 1,363 billion assets under management as of December 31, 2015.

The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA). AXA's American Depository Share is also quoted on the OTC QX platform under the ticker symbol AXAHY.

The AXA Group is included in the main international SRI indexes, such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.

It is a founding member of the UN Environment Programme's Finance Initiative (UNEP FI) Principles for Sustainable Insurance and a signatory of the UN Principles for Responsible Investment.

This press release and the regulated information made public by AXA pursuant to article L. 451-1-2 of the French Monetary and Financial Code and articles 222-1 et seq. of the Autorité des marchés financiers' General Regulation are available on the AXA Group website (www.axa.com).

THIS PRESS RELEASE IS AVAILABLE ON THE AXA GROUP WEBSITE www.axa.com

Investor Relations:
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Jean-Baptiste Mounier:		 +33.1.40.75.46.74
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IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements contained herein may be 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 and can be affected by other factors that could cause actual results and AXA's plans and objectives to differ materially from those expressed or implied in the forward looking statements. Please refer to the section "Cautionary statements" in page 2 of AXA's Document de Référence for the year ended December 31, 2014, for a description of certain important factors, risks and uncertainties that may affect AXA's business, and/or results of operations. 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.

AXA Group IFRS revenues – Contributions & growth by segment and country/region
In Euro million FY14
IFRS		 FY15
IFRS		 IFRS revenues change
United States 11,469 13,620 Reported
+19%		 Comp. basis
0%
France 15,121 15,994 +6% +6%
NORCEEi 15,636 15,960 +2% -3%
of which Germany 6,640 6,650 0% 0%
of which Switzerland 6,720 7,170 +7% -5%
of which Belgium 1,813 1,715 -5% -5%
of which Central Eastern Europe 320 298 -7% -7%
United Kingdom 639 700 +10% -1%
Asia Pacific 6,081 7,223 +19% +9%
of which Japan 3,801 4,194 +10% +6%
of which Hong Kong 1,944 2,507 +29% +10%
of which South-East Asia, India & China 336 522 +55% +42%
MedLA 6,384 5,705 -11% -11%
of which Spain
of which Italyii		 752 757 +1% +1%
4,836 4,086 -16% -16%
of which Other iii 796 861 +8% +3%
Otheriv 16 10 -39% -39%
Life & Savings 55,345 59,211 +7% 0%
of which mature markets 52,136 55,210 +6% 0%
of which high growth markets 3,209 4,001 +25% +10%
NORCEE 8,737 9,124 +4% +1%
of which Germany 3,779 3,909 +3% +3%
of which Belgium 2,026 2,010 -1% -1%
of which Switzerland 2,783 3,100 +11% -1%
France 6,034 6,020 0% 0%
MedLA 7,440 7,496 +1% -1%
of which Spain 1,714 1,536 -10% -10%
of which Italy 1,519 1,558 +3% +3%
of which Mexico 1,465 1,535 +5% +4%
of which Turkey 1,019 984 -3% 0%
of which Other v 1,724 1,884 +9% -2%
United Kingdom & Ireland 4,034 4,792 +19% +5%
Asia 853 1,099 +29% +8%
Direct 2,361 2,732 +16% +7%
Property & Casualty 29,460 31,265 +6% +1%
of which mature markets 22,378 23,374 +4% 0%
of which Direct 2,361 2,732 +16% +7%
of which total high growth markets 4,721 5,159 +9% +3%
AXA Corporate Solutions Assurance 2,118 2,255 +6% +2%
Other International activities 1,175 1,360 +16% +15%
International Insurance 3,292 3,615 +10% +7%
AB 2,175 2,580 +19% 0%
AXA Investment Managers 1,151 1,242 +8% +4%
Asset Management 3,326 3,822 +15% +1%
Banking vi 564 621 +10% +10%
TOTAL 91,988 98,534 +7% +1%

i including Luxembourg

iiPure Unit-Linked products sold at AXA MPS are accounted as investment products under IFRS and contribute to APE but not to revenues

iii Colombia, Greece, Mexico, Morocco, Portugal, Turkey

iv Architas Europe, AXA Life Invest Services and Family Protect

v Colombia, Greece, the Gulf region, Morocco and Portugal

vi and other companies

Page 15/22

In million local currency except Japan in billion 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Life & Savings
United States 3,671 3,853 3,656 4,094 3,603 3,941 3,766 3,937
France 3,944 3,579 3,502 4,096 4,427 3,797 3,563 4,207
United Kingdom 128 118 129 141 130 148 119 115
NORCEE
Germany 1,650 1,644 1,608 1,738 1,638 1,662 1,617 1,733
Switzerland 4,580 1,372 938 1,275 4,408 1,259 920 1,145
Belgium 614 427 329 443 589 432 293 402
Central & Eastern Europei 90 63 68 99 83 78 83 53
Asia Pacific
Japan 135 131 134 134 136 133 138 161
Hong Kong 4,650 4,690 5,099 5,637 5,284 5,141 5,603 5,729
i
MedLA		 1,437 1,925 1,227 1,795 1,462 1,711 1,135 1,397
Property & Casualty
NORCEE
Germany 1,745 627 763 644 1,805 649 781 674
Switzerland 2,735 289 185 173 2,743 289 156 154
Belgium 627 481 467 451 618 475 471 446
France 2,029 1,274 1,433 1,298 2,136 1,206 1,507 1,171
i
MedLA		 1,855 1,843 1,641 2,101 2,130 1,796 1,586 1,984
United Kingdom & Irelandii 848 902 812 701 863 933 829 879
Asiai 241 201 218 194 315 274 276 234
Directi 597 605 596 564 661 728 685 658
International Insurance
AXA Corporate Solutions Assurance 995 376 358 389 1,067 384 402 401
Other international activitiesi 336 259 272 307 387 324 336 313
Asset Management
AB 687 724 727 758 728 749 716 695
AXA Investment Managers 276 287 262 326 309 323 316 295
Bankingi 134 153 124 153 174 127 192 128

i In Euro million due to multiple local currencies

ii Ireland revenues are in GBP in this table

Page 16/22

APPENDIX 3: LIFE & SAVINGS – NEW BUSINESS VOLUME (APE), VALUE (NBV) AND NBV TO APE MARGIN /

AXA – PRESS RELEASE

In Euro million FY15 APE by product Total APE NBV NBV Margin
G/A
Protection
& Health		 G/A
Savings		 Unit-Linked Mutual
funds &
other		 FY14 FY15 Change on a
comparable
basis		 FY14 FY15 Change on a
comparable
basis		 FY14 FY15 Change on a
comparable
basis
United States 132 71 937 517 1,355 1,656 +3% 378 423 -6% 28% 26% -2 pts
France 835 549 352 31 1,584 1,767 +12% 392 463 +12% 25% 26% 0 pt
United Kingdom 36 0 617 282 704 935 +20% 32 13 -62% 4% 1% -3 pts
NORCEE 506 81 226 51 909 864 -9% 338 321 -12% 37% 37% -1 pt
Germany 179 49 125 21 373 373 0% 115 131 +5% 31% 35% +2 pts
Switzerland 281 2 16 14 329 313 -16% 172 124 -36% 52% 40% -13 pts
Belgium 24 30 46 0 125 100 -20% 25 40 +60% 20% 40% +20 pts
Central & Eastern Europe 23 0 39 16 82 78 -6% 26 26 -1% 32% 34% +2 pts
Asia Pacific 1,073 65 404 48 1,342 1,589 +6% 896 1,065 +9% 67% 67% +1 pt
Japan 286 25 107 0 361 418 +12% 369 434 +14% 102% 104% +1 pt
Hong Kong 309 40 128 48 515 525 -12% 352 413 0% 68% 79% +9 pts
South-East Asia, India & China 477 0 168 0 466 646 +21% 176 219 +15% 38% 34% -2 pts
MedLA 95 177 276 11 570 560 -2% 182 203 +3% 32% 36% +2 pts
Spain 21 27 24 11 93 84 -10% 62 63 -18% 67% 75% -8 pts
Italy 31 142 232 0 388 405 +4% 108 127 +18% 28% 31% +4 pts
Otheri 43 8 20 0 89 71 -20% 12 13 +8% 14% 18% +5 pts
Otherii 4 0 0 0 14 4 -72% 2 3 +14% 17% 68% +51 pts
Total 2,681 943 2,811 941 6,477 7,376 +5% 2,220 2,490 +2% 34% 34% -1 pt
of which mature markets 1,840 899 2,458 877 5,341 6,075 +6% 1,660 1,826 +1% 31% 30% -1 pt
of which high growth markets 840 44 353 64 1,136 1,301 +1% 560 664 +5% 49% 51% +2 pts

iColombia, Greece, Mexico, Morocco, Portugal and Turkey

ii Architas Europe, AXA Life Invest Services and Family Protect

Page 17/22

Property & Casualty revenues – contribution & growth by business line – FY15

Personal Motor Personal Non-Motor Commercial Motor Commercial Non-Motor
in Euro million Gross revenues Change on
comp. basis		 Gross revenues Change on
comp. basis		 Gross revenues Change on
comp. basis		 Gross revenues Change on
comp. basis
NORCEE 2,933 +2% 2,119 0% 590 +1% 3,160 0%
of which Germany 1,201 +6% 1,047 +1% 219 +1% 1,108 +2%
of which Belgium 551 0% 472 -1% 243 +2% 734 -3%
of which Switzerland 1,132 -1% 580 -3% 114 -4% 1,296 -1%
France 1,588 +1% 1,872 +2% 579 +1% 1,982 -2%
MedLA 2,538 -4% 1,496 +4% 981 -12% 2,493 +2%
of which Spain 687 -12% 495 -3% 58 -51% 306 -4%
of which Italy 874 -2% 372 +4% 46 n.a. 265 +2%
of which Mexico 167 +9% 350 +12% 389 -10% 638 +10%
of which Turkey 409 +1% 66 +11% 285 -14% 233 +16%
of which otheri 401 -1% 213 +4% 202 0% 1,052 -4%
United Kingdom & Ireland 658 +18% 1,568 -2% 539 +11% 2,113 +3%
Asia 286 +6% 254 +10% 95 +15% 474 +6%
Direct 2,355 +9% 392 +3%
Total 10,357 +3% 7,701 +1% 2,783 -2% 10,222 +1%
of which mature markets 6,857 +1% 6,159 0% 1,849 +1% 7,922 0%
of which high growth markets 1,145 +4% 790 +10% 934 -7% 2,300 +5%

i Colombia, Greece, the Gulf region, Morocco and Portugal

Page 18/22

APPENDIX 7: ASSETS UNDER MANAGEMENT ROLLFORWARD /

AXA – PRESS RELEASE

Assets under Management rollforward
In Euro billion AB AXA IM AXA IM -
Fully
consolidated scope		 AXA IM -
Asian Joint
Ventures		 Total
AUM at FY14 413 623 585 38 1,036
Net flows +3 +42 +8 +34 +45
Market appreciation -7 +19 +19 0 +12
Scope
& other		 0 -32 -32 0 -32
Forex impact +47 +18 +16 +2 +64
AUM at FY15 455 669 595 74 1,124
Average AUM over the periodi 453 - 618 - 1,071
Change of average AUM on a reported basis vs. FY14 +22% - +11% - +16%
Change of average AUM on a comparable basis vs. FY14 +3% - +7% - +6%

i Average AUM for AXA IM is calculated excluding the contribution from joint ventures

Page 19/22

Earnings: Key figures
Change

In Euro million		 FY14 FY15 Reported At constant
Forex
Life & Savings 3,132 3,503 +12% +3%
Property & Casualty 2,158 2,230 +3% -1%
Asset Management 403 458 +14% +1%
International Insurance 208 193 -8% -7%
Banking 106 97 -9% -9%
Holdings -947 -906 -4% +5%
Underlying Earnings 5,060 5,574 +10% +2%
Realized capital gains/losses 760 725 -5% -8%
Impairments -296 -278 +6% +10%
Equity portfolio hedging -22 -14 +36% +41%
Adjusted Earnings 5,503 6,008 +9% +2%
Change in fair value & Forex 225 -229 - -
Goodwill and related intangibles -345 -74 +78% +80%
Integration and restructuring costs -170 -178 -5% -1%
Exceptional and discontinued operations -188 91 - -
Net Income 5,024 5,617 +12% +3%
Earnings per share –
Fully diluted
In Euro FY14 FY15 Reported
change
Underlying EPSi 1.95 2.16 +10%
Adjusted EPSi 2.14 2.34 +9%
Net income per sharei 1.94 2.18 +12%

iNet of interest charges on undated subordinated notes (TSDI) and undated deeply subordinated notes (TSS).

AXA Group Assets AXA Group Liabilities
In Euro billion FY14 FY15
preliminary		 FY14
In Euro billion		 FY15
Goodwill 16.1 17.1 Shareholders' Equity, Group share 65.2 68.5
VBI 2.3 2.4 Minority interests 2.8 4.2
DAC & equivalent 21.1 24.0 SH EQUITY &
MINORITY INTERESTS		 72.6
Other intangibles 3.1 3.3 Financing debt 8.7 8.1
Investments 722.0 755.2 Technical reserves 673.1 707.8
Other assets & receivables 53.4 58.9 Provisions for risks & charges 12.7 12.7
Cash & cash equivalents 22.0 26.3 Other payables & liabilities 77.6 85.9
TOTAL ASSETS 840.1 887.1 TOTAL LIABILITIES 840.1 887.1
FY14 FY15
preliminary

Page 21/22

Changes in scope: No significant changes in scope

Main press releases

Please refer to the following web site address for further details:http://www.axa.com/en/investor/pressreleases/

Issued in 4Q15

Post FY15 closing events

2015 Operations on AXA shareholders' equity and debt

Shareholders' Equity: No significant operation

Debt:

01/23/2015 - Reimbursement of Euro 1 billion of senior debt

Next main investor events

  • 04/27/2016 Shareholders' Annual General Meeting in Paris, Palais des Congrès
  • 05/04/2016 First Three Months 2016 Activity Indicators
  • 06/21/2016 Investor Day
  • 08/03/2016 Half Year 2016 Earnings Release

Page 22/22

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