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AXA Interim / Quarterly Report 2024
1135_ir_2024-08-01_8783f450-6124-49a2-bbe3-a57aaa5f4186.pdf
Interim / Quarterly Report
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Half Year Financial Report
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June 30, 2024
TABLE OF CONTENTS
| I. | Activity Report…………………………………… 3 | |
|---|---|---|
| II. | Consolidated interim financial statements…… 31 | |
| III. | Statutory auditors' review report | |
| on the 2024 Half Year Financial Information …… 85 | ||
| IV. | Statement of the person responsible for the Half | |
| Year Financial Report …………….…………… | 89 |
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I. Activity Report
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June 30, 2024
GIE_AXA_Internal
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND THE USE OF NON-GAAP AND ALTERNATIVE PERFORMANCE MEASURES
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, expectations, or objectives. In particular, the statements in the "Outlook" section of this report, including the capital management and distribution policy, is based on the current views and intentions of the Board of Directors and is subject to change. 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 AXA's actual results to differ materially from those expressed or implied in such forward-looking statements. Please refer to Part 5 - "Risk Factors and Risk Management" of AXA's Universal Registration Document for the year ended December 31, 2023 (the "2023 Universal Registration Document") for a description of certain important factors, risks and uncertainties that may affect AXA's business and/or results of operations. Forward-looking statements in this report speak only as of the date of this report.
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, except as required by applicable laws and regulations.
In addition, this report refers to certain non-GAAP financial measures, or alternative performance measures ("APMs"), used by Management in analysing AXA's operating trends, financial performance and financial position and providing investors with additional information that Management believes to be useful and relevant regarding AXA's results. These non-GAAP financial measures generally have no standardized meaning and therefore may not be comparable to similarly labelled measures used by other companies. As a result, none of these non-GAAP financial measures should be considered in isolation from, or as a substitute for, the Group's Consolidated Interim Financial Statements and related notes prepared in accordance with IFRS. Underlying Earnings, Underlying Earnings per Share, Underlying Return on Equity, Combined Ratio and Debt Gearing are APMs as defined in ESMA's guidelines and the AMF's related position statement issued in 2015. A reconciliation from APMs Underlying Earnings and Combined Ratio to the most directly reconcilable line item, subtotal, or total in the Consolidated Interim Financial Statements of the corresponding period is provided on pages 18 and 19 of this report. APMs Underlying Return on Equity and Underlying Earnings per Share are reconciled to the Consolidated Interim Financial Statements in the tables set forth on page 27 of this report. For further information on any of the above-mentioned APMs, please see the definitions in the section "Alternative Performance Measures" on pages 559 to 560 in the 2023 Universal Registration Document, in its Appendix IV "Glossary".
In this report, unless provided otherwise or unless the context otherwise requires, (i) the "Company", "AXA" and "AXA SA" refer to AXA, a "société anonyme" (a public limited company) organized under the laws of France, which is the publicly traded parent company of the AXA Group, and (ii) the "AXA Group", the "Group" and "we" refer to AXA SA together with its direct and indirect consolidated subsidiaries.
This is a translation into English of the Half-Year Financial Report of the Company issued in French and available on the Company's website (www.axa.com).
Operating Highlights
NEW STRATEGIC PLAN
AXA announced its 2024-2026 strategy, setting ambitious new financial targets
On February 22, 2024, AXA published its strategic plan "Unlock the Future" and its key financial targets for 2024- 2026.
The new Plan is focused on growing and strengthening AXA's core businesses, with continued disciplined execution, following strong delivery of "Driving Progress 2023"(1) .
The main financial targets for 2024-2026 are the following:
- Underlying earnings per share CAGR(2) 2023-2026E between 6% and 8%
- Underlying return on equity between 14% and 16% over 2024E to 2026E
- Over Euro 21 billion cumulative organic cash upstream over 2024E to 2026E
- New capital management policy(3) with a total payout ratio(4) target of 75% of underlying earnings per share, comprising 60% dividend payout ratio and 15% via annual share buy-back(5), and with dividend per share to be at least equal to prior year.
SIGNIFICANT TRANSACTIONS
AXA announced an agreement terminating the sale of a closed life and pensions portfolio at AXA Germany, as well as a reinsurance agreement for an in-force Savings portfolio concluded by AXA Life Europe
On May 2, 2024, AXA announced that it had mutually agreed with Athora to terminate the sale agreement related to the purchase of a closed life and pensions portfolio from AXA Germany, which was initially communicated on July 14, 2022. AXA will retain this portfolio, which is well capitalized and duration matched, as well as its associated earnings. The termination was expected to have no impact on the financial targets announced by the Group as part of its new strategic plan, "Unlock the Future".
(5) Annual shares buy-backs exclude share buy-backs related to the neutralization of earnings dilution from disposal and in-force management transactions, as well as the dilutive effect relating to employee share offerings and stock-based compensation.
(1) For additional details, please refer to the AXA Group's press release "AXA announces its 2024-2026 strategy, setting ambitious new financial targets" published on February 22, 2024 on AXA's website.
(2) Compounded Annual Growth Rate; period-to-period results may vary.
(3) Subject to annual Board and Shareholders' Annual General Meeting approvals and absent (1) for share buy-backs, any significant earnings event (i.e., significant deviation in the Group's underlying earnings) and (2) for dividends, the occurrence of a significant capital event (i.e., event that significantly deteriorates Group solvency). Board discretion includes considering AXA's earnings, financial condition, applicable capital and solvency requirements, prevailing operating and financial market conditions and the general economic environment. (4) Payout based on underlying earnings per share.
ACTIVITY REPORT – HALF YEAR 2024
Separately, AXA Group also announced that its subsidiary AXA Life Europe( 1 ) had entered into a reinsurance agreement(2) with New Reinsurance Company(3) that covers ca. Euro 3 billion of Variable Annuity reserves(4). This transaction will result in a reduction in underlying earnings of ca. Euro 20 million per annum from 2024 onwards. Following the announcement, a Euro 0.2 billion share buy-back was completed to offset the earnings dilution related to the reinsurance agreement. The transaction, including the impact of the share buy-back, was expected to have a ca. -1 point impact on AXA Group's Solvency II ratio(5) .
CAPITAL / DEBT OPERATIONS
AXA announced the successful placement of Euro 1.5 billion Restricted Tier 1 Notes
On January 10, 2024, AXA announced that it had successfully completed the placement with institutional investors of Euro 1.5 billion of Reg S perpetual deeply subordinated notes (the "Notes") with institutional investors. The Notes qualify as Restricted Tier 1 capital under Solvency II. Investor demand for the issuance was strong with a book subscribed more than 5 times.
The initial fixed rate was set at 6.375% per annum until the end of a 6-month call window period (ending on January 16, 2034), when the interest rate will reset and every five years thereafter at the prevailing Euro 5-year Mid Swap rate plus a margin of 384.1 basis points. In line with the Solvency II requirements, the Notes feature a loss absorption mechanism in the form of a write-down(6) of the nominal amount of the Notes if one of the solvencyrelated triggers(7) is breached(8). Interest payments are at the full discretion of AXA unless they are mandatorily prohibited.
The Notes were rated BBB+ by Standard & Poor's and Baa1(hyb) by Moody's. They are eligible to be treated as capital from a regulatory and rating agencies' perspective within applicable limits.
This issuance was part of AXA Group's funding plan for 2024 and the proceeds were to be used for general corporate purposes, including the refinancing of part of the AXA Group's outstanding debt.
The settlement of the Notes took place on January 16, 2024.
Execution of a share repurchase agreement in relation to AXA's share buy-back program of up to Euro 1.8 billion
On February 23, 2024, AXA entered into a share repurchase agreement with an investment services provider, whereby AXA was initially to buy back its own shares for a maximum amount of Euro 1.6 billion, reflecting:
(8) Either at AXA Group level or at AXA SA solo level. AXA SA expects to transition the calculation of its Solo Solvency II ratio from the Solvency II standard formula to the AXA Group's Internal Model by the end of 2024, subject to prior approval by the ACPR. At AXA SA level, the impact of such transition is expected to result in a reduction in the AXA SA Solo Solvency II ratio to a level more consistent with AXA Group's Solvency II ratio. At Group level, such transition is expected to have an immaterial impact on the AXA Group's Solvency II ratio and a limited negative impact on the AXA Group's MCR coverage. The AXA SA MCR coverage is expected to remain materially above the AXA Group MCR coverage.
(1) AXA Life Europe, an Irish entity, manages a portfolio of variable annuity products primarily sold in Germany. It has been closed to new business since 2017.
(2) The reinsurance agreement provides cover for all risks of AXA Life Europe's portfolio during the accumulation phase, excluding only expenses relating to the management of the portfolio of AXA Life Europe. Longevity risk during the decumulation phase is excluded from the scope of this agreement.
(3) New Reinsurance Company Ltd, a Swiss entity, is a subsidiary of Munich Re and a member of the Munich Re Group.
(4) Amount as of full year 2023.
(5) As of half year 2024.
(6) With discretionary reinstatement subject to conditions as further described in the Prospectus dated January 10, 2024.
(7) As determined under Solvency II.
- Euro 1.1 billion share buy-back, in line with its new capital management policy, as announced on February 22, 2024
- Euro 0.5 billion anti-dilutive share buy-back related to the reinsurance agreement for an in-force Savings portfolio at AXA France, as announced on December 20, 2023
Under the initial share repurchase agreement(1) signed on February 23, 2024, shares were bought back commencing on February 26, 2024, and the execution of the share buy-back was expected to end at the latest on August 5, 2024.
On May 7, 2024, AXA announced an amendment to the initial share repurchase agreement with the investment services provider, to increase by Euro 0.2 billion to Euro 1.8 billion the maximum amount of its own shares that AXA would buy back. The amendment also extended the end of the purchase period from August 5 to August 30, 2024. This amendment reflected the Euro 0.2 billion anti-dilutive share buy-back program relating to the execution of the reinsurance agreement between AXA Life Europe and New Reinsurance Company, as announced on May 2, 2024.
The share buy-back program, as amended, was completed on June 13, 2024, for an amount of Euro 1.8 billion(2) , having been carried out in accordance with the terms of the applicable Shareholders' Annual General Meeting authorization(3). On each day during the purchase period, the price per share paid by AXA(4) was determined based on the volume-weighted average share price.
AXA intends to cancel all shares repurchased pursuant to this share buy-back program.
AXA announced cash tender offers for two series of subordinated notes
On February 26, 2024, AXA announced an all-cash tender offer for each of the following two series of AXA SA subordinated notes:
- GBP 350,000,000 Fixed to Floating Rate Undated Deeply Subordinated Notes issued on July 6, 2006(5) and
- GBP 723,925,000 Undated Deeply Subordinated Resettable Notes issued on November 7, 2014(6)
The tender offers expired at 5:00 p.m., Central European time, on March 4, 2024. 91% of the GBP 350,000,000 Fixed to Floating Rate Undated Deeply Subordinated Notes issued on July 6, 2006 were tendered, as were 95% of the GBP 723,925,000 Undated Deeply Subordinated Resettable Notes issued on November 7, 2014.
The transaction was part of AXA Group's active management of its debt structure and will allow AXA to further optimize its capital base.
AXA announced the placement of Euro 750 million senior notes due 2034
On May 29, 2024, AXA announced the placement of Euro 750 million of Reg S senior unsecured notes due 2034 (the "Notes") with institutional investors. The settlement of the Notes took place on May 31, 2024.
The Notes have a fixed annual coupon of 3.375% and were rated A+ by Standard & Poor's and A1 by Moody's.
(6) Fixed rate of 5.453% until the first call date on March 4, 2026.
(1) On February 23, 2024, it was indicated that the up to Euro 1.6 billion share buy-back program would be executed in addition to any other potential anti-dilutive share buy-back.
(2) AXA bought back its own shares for an exact amount of Euro 1,799,999,979.81.
(3) The Shareholders' Annual General Meeting authorization granted on April 27, 2023, or on April 23, 2024, as applicable.
(4) The purchase price did not exceed the maximum purchase price approved at the applicable Shareholders' Annual General Meeting.
(5) Fixed rate of 6.6862% until the first call date on July 6, 2026.
This issuance was part of AXA Group's funding plan for 2024 and the proceeds were to be used for general corporate purposes, including the refinancing of part of the AXA Group's outstanding debt. Over the period 2024 to 2026, the Group intends to maintain a stable debt stock(1) .
PARTNERSHIPS AND INNOVATION
The Universal Postal Union (UPU) and AXA join forces to advance inclusive insurance through Postal Networks
Postal networks play a crucial role in global financial inclusion, with over a quarter of the world's adult population accessing formal financial services through their post office. This is possible because postal networks combine lastmile distribution reach with strong customer trust, thereby reaching very remote populations most other networks do not extend to, including those working in the informal economy. Posts have traditionally focused on payments and savings, and today insurance is generating a growing interest and shows great promise. In 2021, 53% of posts offered insurance, up from 38% in 2016(2) .
Through AXA EssentiALL, the Group's inclusive insurance business, AXA provides affordable, accessible, and attractive insurance solutions to over 14 million people and micro-businesses(3) by leveraging physical and digital distribution channels that target these lower income classes, have scaled and penetrated networks, as well as trusted brand names. Initially focused on emerging markets, AXA EssentiALL is extending its geographical scope to Europe to bring inclusive insurance solutions to low to middle income households and small businesses facing purchasing power and social protection challenges.
This two-phased partnership between UPU and AXA began in Q2 2024 with a research program showcasing successful postal insurance models around the world to provide posts and insurers with insights and best practices.
Building on this research and its actionable conclusions, UPU and AXA will work together to establish the Postal Insurance Technical Assistance Facility (PITAF). PITAF will aim to provide local posts with both technical and financial support to avail, expand or diversify inclusive insurance schemes. Capitalizing on the UPU's postal network and AXA's insurance expertise, PITAF will help promote financial inclusion and risk mitigation amongst underserved populations.
GOVERNANCE
Composition of the Board of Directors and its Committees
The Shareholders' Meeting of April 23, 2024, approved (i) the renewal of the terms of office for Antoine Gosset-Grainville, Clotilde Delbos, and Isabel Hudson as directors (for 4 years), as well as for Angelien Kemna and Marie-France Tschudin (for 3 years), and (ii) the appointment as director, upon the proposal of the AXA Group's employee shareholders, of Helen Browne (for 4 years).
André François-Poncet, whose term of office expired at the end of the Shareholders' Meeting, did not wish to stand for re-election and has not been replaced.
(3) AXA Group, full year results 2023.
(1) Please refer to the AXA Group's press release "AXA announces its 2024-2026 strategy, setting ambitious new financial targets" published on February 22, 2024 on AXA's website.
( 2 ) "Advancing financial inclusion through access to insurance: the role of postal networks", Universal Postal Union – International Labor Organization, 2016.
ACTIVITY REPORT – HALF YEAR 2024
The Board of Directors is therefore comprised of 15 members, including 9 women and 6 men. In addition, 9 directors are considered independent (representing 75%, in accordance with the Afep-Medef Code).
In addition, the Board of Directors, which met after the Shareholders' Meeting, confirmed the renewal of Antoine Gosset-Grainville's term as Chairman of the Board of Directors for the duration of his directorship, and appointed Clotilde Delbos as a member of the Finance & Risk Committee.
On August 1, 2024, the Board of Directors decided to appoint Gérald Harlin as a member of the Compensation, Governance & Sustainability Committee.
The composition of the Board Committees is now as follows:
- Audit Committee: Isabel Hudson (Chairwoman), Clotilde Delbos, Ramon Fernandez, Angelien Kemna and Rachel Picard;
- Finance & Risk Committee: Ramon Fernandez (Chairman), Clotilde Delbos, Gérald Harlin, Isabel Hudson and Ramon de Oliveira;
- Compensation, Governance & Sustainability Committee: Guillaume Faury (Chairman), Bettina Cramm (employee representative), Rachel Duan, Gérald Harlin and Marie-France Tschudin.
Furthermore, Rachel Duan informed the Board of Directors of her intention to resign her directorship at the end of the year.
OTHER
AXA published the fourth edition of its Mind Health Report
On March 6, 2024, AXA published the fourth edition of its Mind Health Report, a study aimed at identifying mental health and well-being problems in society in order to build solutions to alleviate them. This was carried out jointly with Ipsos among 16,000 people aged 18 to 75 from sixteen European, Asian and American countries and territories.
In this fourth edition, AXA and Ipsos focused specifically on understanding the working population's mental health and wellbeing. It reveals that 3 in 4 people are experiencing multiple mental health conditions as a result of their work environment, of whom almost 70% feel disengaged with work.
The work environment seems to take the greatest toll on the mental health of younger populations. Whilst almost a quarter (23%) of all workers have been signed off work on sick leave due to mental health issues, this figure rises to 38% amongst young workers. Almost two-thirds (62%) of those aged between 18-44 responded that mental health care and support provided by their employers is important in their decision to remain at their places of work.
The economic impact is clear. For countries and territories included in our study, the cost of mind health at work is estimated at 2.7 trillion dollars, on average 4.4% of their GDP(1) .
Mental health conditions are, in large part, preventable with accessible and comprehensive support. More than 50% responded that company-driven mental health initiatives and benefits, such as firmwide mental health first aid courses, would influence their engagement at work.
Today, only 4 out 10 people would seek professional help if work affected their mental wellbeing. Almost 70% believe that they could reach out to family, friends, or peers if they needed the psychological support. For example, AXA France built an internal network of 100 employees to act as mental health first-aid respondents towards peers.
(1) Cebr was commissioned by AXA to estimate the impact of workers' disengagement from work / decreased productivity due to the health consequences of work-related stress on the economy of 16 countries and territories.
AXA trains its individual shareholders on the challenges of climate change
On April 4, 2024, AXA announced the roll-out of its training offer on the challenges of climate change to its individual shareholders, thus confirming its ambition to be a responsible player in society in the face of environmental challenges.
The fight against climate change, as well as prevention and adaptation to this change, are strategic pillars for AXA, as an insurer, as an investor and as an employer. This is why, after having trained 96% of its employees in the challenges of climate change through a training program created by AXA Climate, the Group is now going to offer this training, The Climate School, to its individual shareholders.
AXA Climate's Climate School has been produced with contributions from over 120 scientists, experts and researchers around the world and is the most comprehensive 100% digital micro-learning catalogue on environmental and sustainable transition issues to date. It provides a user-friendly, science-based learning experience to explain the impacts of climate change on the environment and businesses, and to show what can be done to reduce them at both individual and corporate level. It is, for example, through this platform and its various modules that we aim to reinforce the awareness of our individual shareholders about these issues.
RISK FACTORS
The principal risks and uncertainties faced by the Group are described in detail in Section 5.1 "Risk Factors" and Section 7.3 "General Information" of the 2023 Universal Registration Document (on pages 236 to 257 and pages 486 to 505, respectively). The 2023 Universal Registration Document was filed with the Autorité des marchés financiers (the "AMF") on March 18, 2024, and is available on the AMF's website (www.amf-france.org) as well as on AXA's website (www.axa.com). The descriptions contained in these sections of the 2023 Universal Registration Document remain valid in all material respects at the date of the publication of this report regarding the evaluation of the major risks and uncertainties affecting the Group as of June 30, 2024, or which Management expects could affect the Group during the remainder of 2024.
RELATED PARTY TRANSACTIONS
During the first half of 2024, there were (i) no modifications to the related-party transactions described in Note 25 "Related-party transactions" to the audited Consolidated Financial Statements for the fiscal year ended December 31, 2023, included in the 2023 Universal Registration Document (pages 460 and 461) filed with the AMF and available on its website (www.amf-france.org) as well as on the Company's website (www.axa.com), which significantly influenced the financial position or the results of the Company during the first six months of the fiscal year 2024, and (ii) no new transactions concluded between AXA SA and related parties that significantly influenced the financial position or the results of the Company during the first six months of 2024.
Events subsequent to June 30, 2024
AXA entered into an exclusive negotiation to sell AXA Investment Managers to BNP Paribas
On August 1, 2024, AXA announced that it has entered into an exclusive negotiation to sell its asset manager AXA Investment Managers ("AXA IM") to BNP Paribas for cash proceeds(1) of €5.1 billion. In addition, AXA would receive €0.3 billion consideration from the sale of Select(2) to AXA IM prior to the closing of the proposed transaction. The total estimated transaction value is expected to be €5.4 billion, representing a multiple of 15x 2023 earnings. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA. The combination of AXA Investment Managers and BNP Paribas would create a leading European asset manager, with total assets under management of €1.5 trillion(3) .
The intention to exit the Asset Management business further emphasizes the Group's strategy to simplify its business model and to focus on its core insurance activities. In particular, AXA's Life & Savings business is wellpositioned to grow, driven by the Group's strong distribution and product design capabilities, and our customers will benefit from a broader array of asset classes, including continued access to a best-in-class Alternatives asset management platform. AXA retains full authority over product design, asset allocation and asset-liability management decisions.
The completion of the transaction is subject to customary closing conditions, including the information and consultation of employee representative bodies, followed by the signing of the Share Purchase Agreement and the receipt of regulatory approvals, and is expected to be finalized by the second quarter of 2025.
Starting from FY24, AXA IM will be classified as 'discontinued operations' in AXA's consolidated financial statements and AXA will continue to account for the contribution of AXA IM to the Group's Underlying Earnings until the expected completion of the sale. Upon completion, the proposed transaction is expected to result in (i) a reduction in Underlying Earnings of ca. Euro 0.4 billion on an annualized basis for the Group and (ii) an estimated one-off Net Income gain of €2.2 billion. AXA intends to offset the earnings dilution from the proposed disposal with a share buyback, currently estimated at Euro 3.8 billion, to be launched immediately following the closing of the proposed transaction. The proposed transaction and the associated share buyback are expected to have a neutral impact on AXA's Solvency II ratio. The proposed transaction is expected to have no material impact on the key financial targets(4) that were communicated as part of the 'Unlock the Future' plan.
(4) Underlying earnings per share CAGR 2023-2026E between 6% and 8%, Underlying return on equity between 14% and 16% over 2024E to 2026E, over Euro 21 billion cumulative organic cash upstream over 2024E to 2026E.
(1) For 100% share capital of AXA IM, of which 98% is owned by the AXA Group (67% by AXA SA and 31% by other AXA entities), subject to price adjustment mechanisms.
(2) Select (formerly named 'Architas') is an AXA company offering investment solutions, including management of funds, investment management services, advisory services and investment related services, to retail customers in France, Belgium, Hong Kong and Indonesia. (3) As of December 31st, 2023, based on companies' financial disclosures.
Market Environment
FINANCIAL MARKET CONDITIONS
STOCK MARKETS
| (main indices, in pts) | June 30, 2024 | June 30, 2024 / December 31, 2023 |
June 30, 2023 | June 30, 2023 / December 31, 2022 |
|---|---|---|---|---|
| CAC 40 | 7,479 | -1% | 7,400 | 14% |
| Eurostoxx 50 | 4,894 | 8% | 4,399 | 16% |
| FTSE 100 | 8,164 | 6% | 7,532 | 1% |
| Nikkei | 39,583 | 18% | 33,189 | 27% |
| S&P 500 | 5,460 | 14% | 4,450 | 16% |
| MSCI World | 3,512 | 11% | 2,967 | 14% |
| MSCI Emerging | 1,086 | 6% | 989 | 3% |
Source: Bloomberg.
Over the first half of 2024, stock markets continued to build on the momentum of 2023, anticipating lower inflation and, therefore, first cuts in interest rates from central banks. The MSCI AC World index increased by 11% across the first half of 2024.
In the United States, the S&P 500 followed on from strong gains in 2023 to deliver an equally solid first half of 2024, up 14% from end-2023. Performance again had a narrow base, with gains concentrated in technology companies.
In Europe, markets have also performed well, although they have not matched gains observed in the United States. The Euro Stoxx 50 index rose by 8% in the first half of the year. This pattern was broadly echoed across the Eurozone economies. However, the French CAC 40 has fallen by 1% so far this year, with most of this underperformance materializing in June as President Macron announced snap elections that introduced political uncertainty. In the United Kingdom, the FTSE 100 has continued to underperform most markets in the first half of 2024 (+6%).
In Asia, Japan's stock markets also performed strongly, boosted by the sharp depreciation of the Yen boosting overseas sales and the yen value of overseas profits. The Nikkei rose by 18% in the first half of 2024.
BOND MARKETS
| (Government bonds in % or basis points (bps)) | June 30, 2024 | June 30, 2024 / December 31, 2023 |
June 30, 2023 | June 30, 2023 / December 31, 2022 |
|---|---|---|---|---|
| 10Y French bond | 3.30% | +74 bps | 2.93% | -19 bps |
| 10Y German bond | 2.50% | +48 bps | 2.39% | -18 bps |
| 10Y Swiss bond | 0.60% | -10 bps | 0.96% | -66 bps |
| 10Y Italian bond | 4.07% | +37 bps | 4.07% | -64 bps |
| 10Y UK bond | 4.17% | +64 bps | 4.39% | +72 bps |
| 10Y Japanese bond | 1.06% | +44 bps | 0.40% | -2 bps |
| 10Y US bond | 4.40% | +52 bps | 3.84% | -4 bps |
Source: Bloomberg.
The bond markets have seen a general rise in yields over the first half of 2024, signalling a shift in market expectations since the end of 2023.
In the United States, market expectations of seven cuts at the end of 2023 for the Federal Reserve have shifted to a view of one or two cuts by year-end 2024. As a result, US 10-year Treasury yields have risen by 52bps to close the first half of 2024 at 4.40%.
In Europe, the Central Bank also saw a shift in outlook, with markets currently expecting three cuts for the year, down from seven at the end of 2023. German bund 10-year yields were 48bps higher (at 2.50%), Italian BTP 10-year yields were 37bps higher (4.07%), and Spanish 10-year bonds were 43bps higher (3.42%). France stands out with OAT 10-year yields rising by 74bps (3.30%), with 20bps of that underperformance occurring over May and June, reflecting public deficit concerns exacerbated by recent political uncertainty. UK 10-year Gilt yield rose by 64bps (4.17%).
In Japan, the surge in global inflation has impacted the Japanese economy and the Bank of Japan tightened its monetary policy in March. Accordingly, 10-year bond yields rose by 44bps in the first half of 2024 to 1.06% - their highest in 12 years.
Corporate spreads have continued to tighten this year across jurisdictions and credit quality. In the United States, spreads have pulled to their tightest levels since pre-2007, close to the pre-pandemic tights. European credit spreads have also narrowed sharply this year following a less aggressive correction last year.
EXCHANGE RATES
| End of Period Exchange rate | Average Exchange rate | ||||
|---|---|---|---|---|---|
| (for €1) | June 30, 2024 | June 30, 2024 / December 31, 2023 |
June 30, 2024 | June 30, 2024 / June 30, 2023 |
|
| US Dollar | 1.07 | -3% | 1.08 | 0% | |
| British Pound Sterling | 0.85 | -2% | 0.85 | -2% | |
| Swiss Franc | 0.96 | 4% | 0.96 | -2% | |
| Japanese Yen | 172 | 11% | 165 | 13% |
Source : WM/Refinitiv
Exchange rates in developed markets have been relatively stable in the first half of 2024 as adjustments in interest rate outlooks have been similar across jurisdictions. The one notable exception is the Japanese Yen that weakened significantly as the Bank of Japan continued to maintain low interest rates in a bid to revive inflation on a sustainable basis.
The Euro closed 2023 at a strong USD 1.10, up 3% over the year. It has retraced most of this, back to USD 1.07 over the first half of the year, though nearly half of the move so far this year occurred in June and is associated with political uncertainty, notably in France. The British Pound Sterling has made steady gains against the Euro, up 2% this year to GBP 0.85. The Japanese Yen has seen the sharpest moves, dropping by 11% versus the Euro to JPY 172 in the first half of this year.
Activity and Earnings Indicators
ACTIVITY INDICATORS
| (in Euro million, except percentages) | June 30, 2024 |
June 30, 2023 |
June 30, 2024 / June 30, 2023 (a) |
|---|---|---|---|
| Gross Written Premiums & Other Revenues (b) | 59,872 | 55,740 | 7.0% |
| Property & Casualty | 32,522 | 30,400 | 6.7% |
| Life & Health | 26,505 | 24,528 | 7.4% |
| o/w Life | 17,419 | 16,297 | 7.5% |
| o/w Health | 9,086 | 8,231 | 7.4% |
| Asset Management | 787 | 749 | 5.1% |
| Banking | 57 | 62 | -8.2% |
| New Business Value (NBV) (1) | 1,206 | 1,179 | 5.8% |
| Present Value of Expected Premiums (PVEP) (2) | 25,588 | 23,260 | 12.5% |
| NBV Margin (1)/(2) | 4.7% | 5.1% | -0.3 pt |
Average Assets under Management(c ) 749 736 1.8%
(a) Changes are on comparable basis.
(b) Net of Intercompany eliminations.
(c) in Euro billion.
| (in Euro million, except percentages) | June 30, 2024 |
June 30, 2023 |
June 30, 2024 / June 30, 2023 (a) |
|---|---|---|---|
| Gross Written Premiums & Other Revenues (b) | 59,872 | 55,740 | 7.0% |
| France | 14,719 | 13,859 | 4.7% |
| Europe | 22,579 | 20,996 | 5.4% |
| AXA XL | 11,220 | 10,534 | 7.4% |
| Asia, Africa & EME-LATAM | 9,571 | 8,610 | 15.3% |
| AXA IM | 787 | 749 | 5.1% |
| Transversal & Central Holdings | 995 | 993 | -0.6% |
(a) Changes are on comparable basis.
(b) Net of Intercompany eliminations.
Consolidated Gross Written Premiums and Other Revenues amounted to €59,872 million as of June 30, 2024, up 7.4% on a reported basis, and up 7.0% on a comparable basis compared to June 30, 2023.
The comparable basis restatement (€-0.2 billion or -0.4 point) mainly includes the half-year 2023 contribution of acquired entities in Spain, Türkiye and United Kingdom & Ireland. It also neutralizes the foreign exchange rate movements due to the appreciation of the average Euro exchange rate, mainly against the Japanese Yen, partly offset by the depreciation notably against the Swiss Franc.
GROSS WRITTEN PREMIUMS & OTHER REVENUES
Property & Casualty gross written premiums were up 7% (or €+2,048 million) on a comparable basis to €32,522 million:
- Commercial lines grew by 7% (or €+1,323 million) primarily driven by (i) AXA XL Insurance (+7%) mainly from strong price increases across all lines except US Professional and Cyber, along with volume growth and strong retention mostly driven by Property, Casualty as well as the renewal of a multi-year fronting deal, (ii) Asia, Africa & EME-LATAM (+23%) mainly driven by Türkiye mostly from higher average premiums in Property and Motor in a hyperinflationary context, along with favorable volume and price effects most notably in Mexico and Colombia, (iii) Europe (+5%) from price increases in all lines of business, notably Property and Motor, combined with a positive volume effect, (iv) France (+5%) reflecting price increases, notably in Property and Motor;
- Personal lines grew by 6% (or €+555 million) driven by (i) Non-Motor (+8%) primarily in Europe (+7%) mostly in Germany, Switzerland and United Kingdom & Ireland from strong price increases, partly offset by lower volumes with focus on profitability, in Asia, Africa & EMEA-LATAM (+35%) notably in Colombia from higher volumes and price effect in Compulsory accident insurance, and Türkiye from higher average premiums in Property, and finally in France (+5%) stemming from price increases. Gross written premiums also grew in (ii) Motor (+4%), in particular in France (+11%) from strong price increases combined with new business growth, in Europe (+2%) driven by strong price effects, partly offset by lower volumes and a change in business mix notably as a result of underwriting measures in United Kingdom & Ireland as well as in Germany, and finally in Asia, Africa & EME-LATAM (+5%) mainly driven by Türkiye mostly from higher average premiums in a hyperinflationary context, along with favorable volume and price effects, notably in Mexico;
- AXA XL Reinsurance increased by 10% (or €+170 million) primarily from price increases in Property and in Casualty, as well as higher volumes in Specialty.
Life & Health gross written premiums were up 7% (or €+1,856 million) on a comparable basis to €26,505 million.
Life gross written premiums were up 7% (or €+1,230 million) on a comparable basis to €17,419 million:
- General Account Savings increased by 12% (or €+581 million) mainly driven by (i) Asia, Africa & EME-LATAM (+90%) reflecting the strong increase in sales of the capital-light Single Premium Whole Life product in Japan following the improved performance of broker channels, and (ii) Europe (+8%) notably from the successful launch of capital-light products in Italy and Belgium;
- Unit-Linked increased by 11% (or €+410 million) driven by (i) Europe (+22%) primarily from the launch of a new product in Italy, as well as (ii) in France (+5%) from successful commercial campaigns in Individual savings;
- Protection grew by 3% (or €+240 million) mainly from (i) Protection with Unit-Linked (+21%) in Asia, Africa & EME-LATAM (+21%) driven by continued growth in Japan, and (ii) Pure Protection (+1%) mainly in Hong Kong.
Health gross written premiums were up 7% (or €+626 million) on a comparable basis to €9,086 million:
- Group business increased by 10% (or €+392 million), driven by strong tariff increases and higher volumes mostly in France (+7%), in Asia, Africa & EME-LATAM (+24%) mainly in Mexico and Hong Kong, and in Europe (+11%) notably in United Kingdom & Ireland;
- Individual business grew by 5% (or €+234 million), primarily from tariff increases, driven by Asia, Africa & EME-LATAM (+9%) mostly in Türkiye and Mexico, and in France (+15%).
ACTIVITY REPORT – HALF YEAR 2024
I
Asset Management revenues were up 5% (or €+38 million) on a comparable basis to €787 million mainly driven by higher management fees (€+24 million) from higher Average Assets under Management and higher performance fees (€+16 million).
Average Assets under Management increased by 2% (or €+13 billion) on a comparable basis to €749 billion mainly driven by favorable market effects, combined with business growth in both AXA IM Alts and Core activities.
Banking revenues decreased by 8% (or €-5 million) on a comparable basis to €57 million mainly due to pressure on margins in the context of higher interest rates.
NEW BUSINESS PERFORMANCE
Present Value of Expected Premiums ("PVEP")
PVEP increased by 10% on a reported basis and 12% on a comparable basis to €25,588 million driven by (i) Life (+8%), from higher volumes in Japan and France, and (ii) Health (+27%), mainly from France due to higher volumes and favorable changes in actuarial assumptions.
New Business Value Margin ("NBV margin")
NBV margin decreased by 0.4 point on a reported basis and 0.3 point on a comparable basis to 4.7% mainly driven by a less favorable business mix in Japan.
UNDERLYING EARNINGS AND NET INCOME GROUP SHARE
JUNE 30, 2024
| (in Euro million) | June 30, 2024 |
Property & Casualty |
Life & Health | Asset Management |
Holdings(a) |
|---|---|---|---|---|---|
| Short-term Business | |||||
| Revenues | 35,273 | 27,294 | 7,979 | ||
| Combined Ratio | 90.2% | 97.6% | |||
| Technical Margin | 2,877 | 2,682 | 195 | ||
| Long-term Business | |||||
| CSM Release | 1,395 | 1,395 | |||
| Technical Experience | -64 | -64 | |||
| Financial Results & Other | |||||
| Financial Results | 2,064 | 1,324 | 536 | 24 | 181 |
| Other Revenues | 1,459 | 937 | 522 | ||
| Other Expenses | -1,624 | -698 | -925 | ||
| Debt Financing Charges | -471 | -471 | |||
| Underlying Earnings Before Tax | 5,638 | 4,006 | 2,061 | 263 | -693 |
| Income Tax | -1,427 | -1,046 | -412 | -69 | 100 |
| Minority interests, Income from Affiliates & Other | 33 | -54 | 76 | 10 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 4,244 | 2,908 | 1,725 | 204 | -592 |
| Contractual Service Margin stock | 33,564 | 230 | 33,333 |
(a) Holdings segment includes banking and holding activities.
| (in Euro million, except percentages) | June 30, 2024 |
France | Europe | AXA XL | Asia, Africa & EME LATAM |
AXA IM | Transversal & Central Holdings |
|---|---|---|---|---|---|---|---|
| Short-term Business | |||||||
| Revenues | 35,273 | 9,046 | 11,839 | 9,022 | 4,312 | 1,053 | |
| Combined Ratio | |||||||
| Technical Margin | 2,877 | 692 | 998 | 1,111 | 70 | 6 | |
| Long-term Business | |||||||
| CSM Release | 1,395 | 407 | 468 | 4 | 516 | 0 | |
| Technical Experience | -64 | -40 | -11 | 3 | -17 | 0 | |
| Financial Results & Other | |||||||
| Financial Results | 2,064 | 350 | 784 | 283 | 382 | 24 | 241 |
| Other Revenues | 1,459 | 53 | -18 | 0 | 0 | 937 | 488 |
| Other Expenses | -1,624 | -83 | -10 | 0 | -9 | -698 | -823 |
| Debt Financing Charges | -471 | 0 | -1 | -16 | -7 | 0 | -447 |
| Underlying Earnings Before Tax | 5,638 | 1,380 | 2,210 | 1,385 | 935 | 263 | -535 |
| Income Tax | -1,427 | -350 | -536 | -355 | -205 | -69 | 88 |
| Minority interests, Income from Affiliates & Other | 33 | 4 | -49 | 0 | 68 | 10 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 4,244 | 1,034 | 1,626 | 1,030 | 798 | 204 | -447 |
| Net Realized Capital Gains & Losses | 93 | ||||||
| Fair Value of Funds & Derivatives | -43 | ||||||
| Amortization of Intangibles | -50 | ||||||
| Integration and Restructuring costs | -78 | ||||||
| Exceptional Items | -147 | ||||||
| NET INCOME GROUP SHARE | 4,020 | ||||||
| Property & Casualty Combined Ratio | 90.2% | 87.8% | 90.3% | 87.7% | 98.0% | 100.1% | |
| Life & Health Short-Term Combined Ratio | 97.6% | 96.7% | 98.8% | 99.1% | 92.2% |
JUNE 30, 2023
| (in Euro million) | June 30, 2023 |
Property & Casualty |
Life & Health | Asset Management |
Holdings(a) |
|---|---|---|---|---|---|
| Short-term Business | |||||
| Revenues | 32,396 | 25,254 | 7,142 | ||
| Combined Ratio | 90.9% | 98.9% | |||
| Technical Margin | 2,368 | 2,288 | 80 | ||
| Long-term Business | |||||
| CSM Release | 1,474 | 1,474 | |||
| Technical Experience | -41 | -41 | |||
| Financial Results & Other | |||||
| Financial Results | 1,804 | 1,193 | 431 | 15 | 166 |
| Other Revenues | 1,397 | 909 | 489 | ||
| Other Expenses | -1,449 | -682 | -766 | ||
| Debt Financing Charges | -461 | -461 | |||
| Underlying Earnings Before Tax | 5,092 | 3,480 | 1,944 | 241 | -574 |
| Income Tax | -1,072 | -761 | -381 | -66 | 136 |
| Minority interests, Income from Affiliates & Other | 92 | -2 | 81 | 13 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 4,111 | 2,717 | 1,643 | 188 | -437 |
| Contractual Service Margin stock (b) | 34,328 | 212 | 34,116 |
(a) Holdings segment includes banking and holding activities.
(b) Life & Health Contractual Service Margin is restated following the termination in 2024 of the sale agreement of a closed life and pensions portfolio at AXA Germany, classified as held for sale as of June 30, 2023.
| (in Euro million, except percentages) | June 30, 2023 |
France | Europe | AXA XL | Asia, Africa & EME LATAM |
AXA IM | Transversal & Central Holdings |
|---|---|---|---|---|---|---|---|
| Short-term Business | |||||||
| Revenues | 32,396 | 8,432 | 10,685 | 8,670 | 3,602 | 1,008 | |
| Combined Ratio | |||||||
| Technical Margin | 2,368 | 516 | 823 | 953 | 77 | -2 | |
| Long-term Business | |||||||
| CSM Release | 1,474 | 433 | 487 | 1 | 553 | 0 | |
| Technical Experience | -41 | -39 | 5 | 0 | -6 | 0 | |
| Financial Results & Other | |||||||
| Financial Results | 1,804 | 357 | 738 | 239 | 266 | 15 | 190 |
| Other Revenues | 1,397 | 58 | 1 | 0 | 0 | 909 | 429 |
| Other Expenses | -1,449 | -83 | 19 | 0 | -9 | -682 | -693 |
| Debt Financing Charges | -461 | 0 | -1 | -18 | -8 | 0 | -434 |
| Underlying Earnings Before Tax | 5,092 | 1,241 | 2,071 | 1,175 | 873 | 241 | -511 |
| Income Tax | -1,072 | -222 | -470 | -237 | -190 | -66 | 113 |
| Minority interests, Income from Affiliates & Other | 92 | 6 | -56 | 0 | 129 | 13 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 4,111 | 1,025 | 1,545 | 938 | 813 | 188 | -398 |
| Net Realized Capital Gains & Losses | -30 | ||||||
| Fair Value of Funds & Derivatives | -74 | ||||||
| Amortization of Intangibles | -93 | ||||||
| Integration and Restructuring costs | -82 | ||||||
| Exceptional Items | 1 | ||||||
| NET INCOME GROUP SHARE | 3,833 | ||||||
| Property & Casualty Combined Ratio | 90.9% | 90.7% | 90.1% | 89.0% | 97.9% | 100.4% | |
| Life & Health Short-Term Combined Ratio | 98.9% | 96.8% | 106.1% | 97.8% | 98.9% |
Alternative Performance Measures
Underlying Earnings, Underlying Earnings per Share, Combined Ratio, Underlying Return on Equity and Debt Gearing are Alternative Performance Measures ("APMs") as defined in ESMA's guidelines and the AMF's related position statement issued in 2015. A reconciliation from Underlying Earnings and Combined Ratio to the most directly reconcilable line item, subtotal, or total in the Consolidated Financial Statements of the corresponding period is provided in the above tables. Underlying Return on Equity and Underlying Earnings per Share are reconciled to the Consolidated Financial Statements in the table set forth on page 27 of this report. For further information on any of the above-mentioned APMs, please see the definitions in the section "Alternative Performance Measures" on pages 559 to 560 of the 2023 Universal Registration Document, in its Appendix IV "Glossary".
Commentary on Group Earnings
UNDERLYING EARNINGS
On a reported basis, Underlying Earnings amounted to €4,244 million, up €133 million (+3%).
On a constant exchange rate basis, Underlying Earnings increased by €158 million (+4%), with growth from Property & Casualty (€+185 million or +7%), Life & Health (€+111 million or +7%, increasing to €+134 million or +8% when excluding the impact of the reinsurance agreements on in-force portfolios in France and AXA Life Europe, as well as the acquisition of Laya in Ireland) and Asset Management (€+16 million or +8%), partly offset by Holdings (€-154 million).
PROPERTY & CASUALTY
| (in Euro million, except percentages) | June 30, 2024 |
Commercial lines |
Personal lines |
AXA XL Reinsurance |
Intercompany eliminations |
|---|---|---|---|---|---|
| Short-term Business | |||||
| Revenues | 27,294 | 18,657 | 9,144 | 1,155 | -1,662 |
| Combined Ratio | 90.2% | 90.1% | 92.9% | 78.7% | |
| Technical Margin | 2,682 | 1,850 | 645 | 246 | -60 |
| Financial Results & Other | 1,324 | 993 | 240 | 119 | -28 |
| Underlying Earnings Before Tax | 4,006 | 2,843 | 886 | 365 | -87 |
| Income tax | -1,046 | ||||
| Minority interests, Income from Affiliates & Other | -54 | ||||
| UNDERLYING EARNINGS GROUP SHARE | 2,908 | ||||
| Contractual Service Margin stock | 230 |
| (in Euro million, except percentages) | June 30, 2023 |
Commercial lines |
Personal lines |
AXA XL Reinsurance |
Intercompany eliminations |
|---|---|---|---|---|---|
| Short-term Business | |||||
| Revenues | 25,254 | 17,117 | 8,470 | 1,121 | -1,455 |
| Combined Ratio | 90.9% | 90.9% | 93.6% | 80.8% | |
| Technical Margin | 2,288 | 1,556 | 544 | 215 | -28 |
| Financial Results & Other | 1,193 | 891 | 228 | 81 | -7 |
| Underlying Earnings Before Tax | 3,480 | 2,447 | 772 | 297 | -35 |
| Income tax | -761 | ||||
| Minority interests, Income from Affiliates & Other | -2 | ||||
| UNDERLYING EARNINGS GROUP SHARE | 2,717 | ||||
| Contractual Service Margin stock | 212 |
ACTIVITY REPORT – HALF YEAR 2024
| (in Euro million, except percentages) | June 30, 2024 |
France | Europe | AXA XL | o/w AXA XL Insurance |
Asia, Africa & EME LATAM |
Transversal & Central Holdings |
|---|---|---|---|---|---|---|---|
| Short-term Business | |||||||
| Revenues | 27,294 | 4,393 | 10,060 | 9,022 | 7,867 | 2,855 | 963 |
| Combined Ratio | 90.2% | 87.8% | 90.3% | 87.7% | 89.0% | 98.0% | 100.1% |
| Technical Margin | 2,682 | 538 | 977 | 1,111 | 865 | 57 | -1 |
| Financial Results & Other | 1,324 | 251 | 473 | 273 | 159 | 242 | 86 |
| Underlying Earnings Before Tax | 4,006 | 788 | 1,450 | 1,384 | 1,024 | 299 | 85 |
| Income Tax | -1,046 | -249 | -352 | -352 | -257 | -77 | -15 |
| Minority interests, Income from Affiliates & Other | -54 | 0 | -25 | 0 | 0 | -28 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 2,908 | 539 | 1,073 | 1,032 | 767 | 194 | 70 |
| (in Euro million, except percentages) | June 30, 2023 |
France | Europe | AXA XL | o/w AXA XL Insurance |
Asia, Africa & EME LATAM |
Transversal & Central Holdings |
|---|---|---|---|---|---|---|---|
| Short-term Business | |||||||
| Revenues | 25,254 | 4,046 | 9,244 | 8,670 | 7,549 | 2,417 | 878 |
| Combined Ratio | 90.9% | 90.7% | 90.1% | 89.0% | 90.2% | 97.9% | 100.4% |
| Technical Margin | 2,288 | 377 | 911 | 953 | 737 | 52 | -4 |
| Financial Results & Other | 1,193 | 258 | 484 | 232 | 151 | 172 | 46 |
| Underlying Earnings Before Tax | 3,480 | 635 | 1,395 | 1,185 | 888 | 224 | 42 |
| Income Tax | -761 | -126 | -329 | -236 | -180 | -61 | -10 |
| Minority interests, Income from Affiliates & Other | -2 | -1 | -24 | 0 | 0 | 23 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 2,717 | 508 | 1,042 | 949 | 708 | 186 | 32 |
On a reported basis, Property & Casualty Underlying Earnings amounted to €2,908 million, up €190 million (+7%).
On a constant exchange rate basis, Property & Casualty Underlying Earnings increased by €185 million (+7%), fuelled by (i) a strong growth in gross written premiums across business lines, (ii) favorable technical results (€+379 million), (iii) higher financial results (€+142 million) driven by significant increase in investment income (€+449 million) thanks to higher reinvestment yields on fixed income assets, more than compensating the increase in the unwind of the discount of claims reserves (€-307 million) resulting from the increase in interest rates experienced since 2022. This was partly offset by (iv) higher income taxes (€-285 million) due to higher pre– tax Underlying Earnings as well as the impact of the OECD Pillar Two minimum taxation rules implemented in 2024.
AY Combined Ratio improved by -0.7 points to 90.2%, mainly driven by (i) a more favorable undiscounted current year loss ratio excluding Natural Catastrophe charges (-0.8 point) from the continued improvements in attritional claims in Commercial lines following strong pricing actions to mitigate impacts from inflation, combined with improvement in Personal lines due to underwriting measures in response to higher frequency in Motor observed in the second half of 2023, notably in United Kingdom & Ireland and Germany, and (ii) favorable prior years' reserve developments (-0.9 point to -1.5% of combined ratio). This was partly offset by (iii) higher Natural Catastrophe charges (+0.5 point to 3.6%) in Europe and in France, (iv) the decrease in current year discount (+0.3 point to -3.9%), driven by the lower average interest rates across most geographies, and (v) higher expenses (+0.1 point) due to the increase in commission expenses (+0.2 point) driven by business mix changes, partly offset by the improvement of the non-commission ratio (-0.1 point).
LIFE & HEALTH
| (in Euro million, except percentages) | June 30, 2024 | Life | Health | |
|---|---|---|---|---|
| Short-term Business | ||||
| Revenues | 7,979 | 2,112 | 5,867 | |
| Combined Ratio | 97.6% | 94.5% | 98.6% | |
| Technical Margin | 195 | 116 | 79 | |
| Long-term Business | ||||
| CSM Release | 1,395 | 1,136 | 259 | |
| Technical Experience | -64 | -71 | 7 | |
| Financial Result & Other | ||||
| Financial Result | 536 | 454 | 82 | |
| Underlying Earnings Before Tax | 2,061 | 1,634 | 427 | |
| Income Tax | -412 | -316 | -96 | |
| Minority interests, Income from Affiliates & Other | 76 | 74 | 2 | |
| UNDERLYING EARNINGS GROUP SHARE | 1,725 | 1,392 | 333 | |
| Contractual Service Margin stock | 33,333 | 25,939 | 7,395 |
| (in Euro million, except percentages) | June 30, 2023 | Life | Health | |
|---|---|---|---|---|
| Short-term Business | ||||
| Revenues | 7,142 | 1,970 | 5,172 | |
| Combined Ratio | 98.9% | 93.8% | 100.8% | |
| Technical Margin | 80 | 122 | -43 | |
| Long-term Business | ||||
| CSM Release | 1,474 | 1,202 | 272 | |
| Technical Experience | -41 | -52 | 11 | |
| Financial Result & Other | ||||
| Financial Result | 431 | 350 | 81 | |
| Underlying Earnings Before Tax | 1,944 | 1,622 | 322 | |
| Income Tax | -381 | -305 | -76 | |
| Minority interests, Income from Affiliates & Other | 81 | 81 | 0 | |
| UNDERLYING EARNINGS GROUP SHARE | 1,643 | 1,398 | 245 | |
| Contractual Service Margin stock (a) | 34,116 | 26,639 | 7,476 |
(a) Life Contractual Service Margin is restated following the termination in 2024 of the sale agreement of a closed life and pensions portfolio at AXA Germany, classified as held for sale as of June 30, 2023.
ACTIVITY REPORT – HALF YEAR 2024
| (in Euro million, except percentages) | June 30, 2024 |
France | Europe | AXA XL | Asia, Africa & EME LATAM |
Transversal & Central Holdings |
|---|---|---|---|---|---|---|
| Short-term Business | ||||||
| Revenues | 7,979 | 4,654 | 1,778 | 0 | 1,457 | 90 |
| Combined Ratio | 97.6% | 96.7% | 98.8% | 0.0% | 99.1% | 92.2% |
| Technical Margin | 195 | 155 | 21 | 0 | 13 | 7 |
| Long-term Business | ||||||
| CSM Release | 1,395 | 407 | 468 | 4 | 516 | 0 |
| Technical Experience | -64 | -40 | -11 | 3 | -17 | 0 |
| Financial Result & Other | ||||||
| Financial Result | 536 | 100 | 284 | 10 | 142 | 0 |
| Underlying Earnings Before Tax | 2,061 | 622 | 762 | 17 | 654 | 7 |
| Income Tax | -412 | -106 | -180 | -3 | -123 | 0 |
| Minority interests, Income from Affiliates & Other | 76 | 4 | -23 | 0 | 96 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 1,725 | 519 | 559 | 14 | 627 | 7 |
| (in Euro million, except percentages) | June 30, 2023 |
France | Europe | AXA XL | Asia, Africa & EME LATAM |
Transversal & Central Holdings |
|---|---|---|---|---|---|---|
| Short-term Business | ||||||
| Revenues | 7,142 | 4,386 | 1,441 | 0 | 1,185 | 130 |
| Combined Ratio | 98.9% | 96.8% | 106.1% | 0.0% | 97.8% | 98.9% |
| Technical Margin | 80 | 140 | -87 | 0 | 26 | 1 |
| Long-term Business | ||||||
| CSM Release | 1,474 | 433 | 487 | 1 | 553 | 0 |
| Technical Experience | -41 | -39 | 5 | 0 | -6 | 0 |
| Financial Result & Other | ||||||
| Financial Result | 431 | 98 | 226 | 7 | 101 | 0 |
| Underlying Earnings Before Tax | 1,944 | 631 | 630 | 8 | 673 | 1 |
| Income Tax | -381 | -100 | -148 | -2 | -131 | 0 |
| Minority interests, Income from Affiliates & Other | 81 | 7 | -32 | 0 | 106 | 0 |
| UNDERLYING EARNINGS GROUP SHARE | 1,643 | 538 | 449 | 6 | 648 | 1 |
On a reported basis, Life & Health Underlying Earnings amounted to €1,725 million, up €82 million (+5%).
On a constant exchange rate basis and excluding the impact of the reinsurance agreements on in-force portfolios in France and AXA Life Europe, as well as the acquisition of Laya in Ireland, Life & Health Underlying Earnings increased by €134 million (+8%) from (i) a higher short-term business technical margin (€+105 million) reflecting 1.2 points decrease in the combined ratio, mostly in Europe (€+97 million) driven by United Kingdom & Ireland from the turnaround plan implemented in response to the increase in Health claims frequency observed in 2023, and in France (€+15 million) mostly driven by Health. (ii) Long-term business technical margin decreased by (€-21 million) mainly from the recognition of a loss component in Italy resulting from the widening of government spreads, while the release of the Contractual Service Margin remained stable (€+1 million) as favorable model and assumption changes in 2024, enabling better profitability recognition, was offset by the adverse impact of the net outflows last year, notably in France which did not impact the first half of 2023. (iii) Financial result increased (€+99 million) notably in Europe and Asia, Africa & EME-LATAM reflecting higher yields and an improved funds distribution. This was partly offset by (iv) higher income taxes (€-51 million) from higher pre-tax Underlying Earnings.
ASSET MANAGEMENT
On a reported basis, Asset Management Underlying Earnings amounted to €204 million, up €16 million.
On a constant exchange rate basis, Asset Management Underlying Earnings increased by €16 million (+8%) driven by (i) higher revenues (€+8 million), (ii) higher investment income (€+6 million) from higher interest rates and higher income from seed capital, (iii) lower expenses (€+6 million) from cost containment measures compensated by higher staff expenses to support business, partly offset by (iv) lower income from affiliates and associates (€-1 million) and (v) higher taxes (€-2 million) from higher pre-tax Underlying Earnings.
HOLDINGS
On a reported basis, Holdings Underlying Earnings amounted to €-592 million, down €-155 million.
On a constant exchange rate basis, Holdings Underlying Earnings decreased by €154 million mainly driven by (i) Transversal & Central Holdings (€-93 million) driven by further investments in technology and growth initiatives, and (ii) Europe (€-59 million) mostly from United Kingdom & Ireland due to the non-repeat of favorable tax one-offs.
NET INCOME
On a reported basis, Net Income amounted to €4,020 million, up €187 million (+5%).
On a constant exchange rate basis, Net Income increased by €225 million (+6%) as:
- the increase in Underlying Earnings, up €158 million to €4,244 million combined with;
- favorable net realized capital gains, up €135 million to €93 million in both fixed income and Investment properties notably in Japan;
- lower unfavorable change in the fair value of assets and derivatives, improving by €47 million to €- 43 million as (i) the increase in the fair value of mutual funds (€+73 million) mainly from hedge funds was more than offset by (ii) the unfavorable change in the fair value of derivatives (€-115 million) mainly hedging equity (€-55 million) and forex (€-16 million); combined with
- lower negative impact of goodwill and other related intangibles, improving by €43 million to €-50 million from the amortization of intangibles at AXA XL, in Switzerland and at AXA Tianping; as well as
- lower integration and restructuring costs, improving by €4 million to €-78 million, mainly consisting of costs (i) at AXA XL (€-25 million) from IT productivity initiatives, including automation, (ii) United Kingdom & Ireland (€-21 million) notably from the integration of Laya in Ireland, as well as (iii) at AXA Life Europe (€-9 million) from project costs in relation with the implementation of a reinsurance agreement on an in-force portfolio;
were partly offset by:
• higher negative impact of exceptional items, down €162 million to €-146 million, mainly from (i) Reso (€-115 million) driven by the net profit of the period including the impairment of both Reso-owned frozen assets and AXA's receivable on dividends declared by Reso combined with (ii) the disposal of India Life (€-42 million).
SHAREHOLDERS' EQUITY GROUP SHARE
As of June 30, 2024, Shareholders' equity Group share totaled €47.3 billion. The movements in Shareholders' equity Group share since December 31, 2023, are presented in the table below:
| (in Euro million) | Shareholders' equity Group share |
|---|---|
| At December 31, 2023 | 49,579 |
| Paid-in Capital | 73 |
| Treasury Shares | -1,628 |
| Other Comprehensive Income Arising from Defined Benefit Plans | 220 |
| Fair Value Recorded in Shareholders' Equity | -1,148 |
| Other Comprehensive Income Related to Invested Assets | -5,473 |
| Other Comprehensive Income Related to (re) Insurance Contracts | 4,325 |
| Impact of Currency Fluctuations | 315 |
| Realized Gains on Equity through Retained Earnings | 5 |
| Undated Subordinated Debt (including interest charges) | 212 |
| Dividends | -4,370 |
| Net Income for the Period | 4,020 |
| Other | 62 |
| At June 30, 2024 | 47,340 |
SOLVENCY INFORMATION(1)
As of June 30, 2024, the Group's Eligible Own Funds ("EOF") amounted to €57.7 billion and the Solvency II ratio to 227%, compared to €57.4 billion and 227% as of December 31, 2023.
(1) Solvency-related information included in this section, including the Solvency II ratio and the Eligible Own Funds ("EOF"), is not subject to the review of the Half Year 2024 Consolidated Financial Statements included in the Half Year 2024 Financial Report, nor the verification of the information otherwise included in such Half Year 2024 Financial Report, performed by the Group's statutory auditors.
Shareholder value
EARNINGS PER SHARE ("EPS")
Underlying Earnings Per Share on a fully diluted basis amounted to €1.87, up 4%.
| June 30, 2024 | June 30, 2023 | June 30, 2024/ June 30, 2023 |
||||
|---|---|---|---|---|---|---|
| (in Euro, except ordinary shares in million) | Basic | Fully diluted |
Basic | Fully diluted |
Basic | Fully diluted |
| Weighted average number of shares | 2,209 | 2,215 | 2,241 | 2,247 | -1% | -1% |
| Net income (Euro per ordinary share) | 1.77 | 1.77 | 1.67 | 1.67 | 6% | 6% |
| Underlying earnings (Euro per ordinary share) |
1.87 | 1.87 | 1.79 | 1.79 | 4% | 4% |
RETURN ON EQUITY ("ROE")
| (in Euro billion) | June 30, 2024 | June 30, 2023 | June 30, 2024 / June 30, 2023 |
|
|---|---|---|---|---|
| Net Income ROE | 15.7% | 15.5% | 0.3 pts | |
| Net Income TUV | 3.9 | 3.7 | ||
| Average Adjusted Shareholders' Equity TWV | 49.7 | 48.4 | ||
| Underlying ROE | 16.6% | 16.6% | 0.0 pts | |
| Underlying Earnings TUV | 4.1 | 4.0 | ||
| Average Adjusted Shareholders' Equity TWV | 49.7 | 48.4 |
(a) Including adjustments to reflect net financial charges related to undated and deeply subordinated debt (recorded through shareholders' equity).
(b) Excluding reserves related to the change in fair value of invested assets and derivatives, reserves related to insurance contracts as well as undated and deeply subordinated debt (recorded through shareholders' equity).
Outlook
AXA has made a good start to its new strategic plan "Unlock the Future", delivering strong operational performance in the first half of 2024. This reflects the strength of its business model, which is balanced between Commercial and Retail lines and diversified across geographies. Management is confident in achieving underlying earnings per share growth in 2024 in line with the 6-8% CAGR plan target(1) range over 2023-2026E period.
In Property & Casualty, the pricing environment remains favorable. Management believes that this environment is conducive to sustaining the Group's strong underwriting margins in Commercial lines and to improving the margins in Personal lines, notably in Europe through pricing and underwriting actions.
In Life & Health, Management expects the recovery in the technical margin in UK Health to continue in the second half of 2024, reflecting the impact from ongoing price increases and underwriting measures.
Results in Holdings reflect investments in technology and growth initiatives that are expected to remain at a similar level in the second half of the year.
Assuming a definitive agreement is reached and the sale of AXA Investment Managers to BNP Paribas is completed, the Group would exit the asset management business(2) . The Group will continue to recognize the earnings of AXA Investment Managers until the expected completion of the proposed transaction. Upon completion, the Group plans to launch a share buy-back to offset the underlying earnings per share dilution that would result from the proposed transaction.
In this context, Management is confident in the Group's ability to deliver on the main financial targets of AXA's "Unlock the Future" plan: (i) underlying earnings per share growth of 6-8% CAGR target range between 2023 and 2026E, (ii) underlying return on equity between 14% and 16% between 2024 and 2026E, and (iii) cumulative organic cash upstreamin excess of €21 billion for 2024-2026E. Management also affirms the capital management policy(3) of the Group's "Unlock the Future" strategic plan, targeting a total payout ratio of 75%(4) , comprising a 60% dividend payout ratio and an additional 15% from annual share buy-backs(5) . The policy also includes a dividend per share floor, whereby the proposed dividend per share in a given year is expected to be at least equal to the dividend per share paid in the prior year.
AXA's strategy is focused on delivering profitable organic growth and scaling technical excellence across its businesses, while driving operational excellence across its entire organization. AXA's Management believes that the Group is well placed to create lasting shareholder value and offer an attractive return.
(5) Annual share buy-backs exclude share buy-backs related to the neutralization of earnings dilution from disposal and in-force management transactions, as well as well as to neutralize the dilution resulting from employee share offerings and stock-based compensation.
(1) Assuming current operating and market conditions persist and based on a Nat Cat load of ca. 4.5 points, defined as normalized natural catastrophes losses expected in a year expressed in percentage of gross earned premiums for the same year. Natural Catastrophe charges include natural catastrophe losses regardless of event size.
(2) The completion of the transaction is subject to customary closing conditions, including the information and consultation of employees' representative bodies, followed by the signing of the Share Purchase Agreement and the receipt of regulatory approvals, and is expected to be finalized by the second quarter of 2025. Please refer to the Press Release "AXA enters into an exclusive negotiation to sell AXA Investment Managers to BNP Paribas" published on August 1, 2024, and available on AXA's website (www.axa.com).
(3) Subject to annual Board and Shareholders' Annual General Meeting approvals and absent (1) for share buy-backs, any significant earnings event (i.e., significant deviation in the Group's underlying earnings) and (2) for dividends, the occurrence of a significant capital event (i.e., event that significantly deteriorates Group solvency). Board discretion includes taking into account AXA's earnings, financial condition, applicable capital and solvency requirements, prevailing operating and financial market conditions and the general economic environment. (4) Payout ratio is calculated based on underlying earnings per share.
Glossary
SCOPE
- France (insurance and banking activities, and holding);
- Europe, consisting of:
- o Switzerland (insurance activities),
- o Germany (insurance activities and holding),
- o Belgium & Luxemburg (insurance activities and holding),
- o United Kingdom & Ireland (insurance activities and holding),
- o Spain (insurance activities),
- o Italy (insurance activities), and
- o AXA Life Europe (insurance activities);
- AXA XL (insurance and reinsurance activities and holding);
- Asia, Africa & EME-LATAM consisting of
- o Asia, consisting of:
- Japan (insurance activities and holding),
- Hong Kong (insurance activities),
- Thailand (insurance activities),
- Indonesia (insurance activities),
- China (insurance activities),
- The Philippines (insurance activities),
- South Korea (insurance activities),
- India (Life activities disposed on March 11, 2024 and holding), and
- Asia Holdings;
- o EME-LATAM, consisting of:
- Brazil (insurance activities and holding),
- Colombia (insurance activities),
- Mexico (insurance activities),
- Russia (Reso) (insurance activities), and
- Türkiye (insurance activities and holding),
- o Africa:
- Morocco (insurance activities and holding),
- Nigeria (insurance activities and holding),
- o AXA Mediterranean Holdings;
- o Asia, consisting of:
- AXA Investment Managers (includes, Select (previously referred to as Architas), Capza, and Asian joint ventures accounted for under the equity method);
- Transversal & Central Holdings, consisting of:
- o AXA Assistance,
- o AXA Liabilities Managers,
- o AXA SA (including Group's internal reinsurance activity consequently to the merger with AXA Global Re on June 30, 2022), and
o Other Central Holdings.
ALTERNATIVE PERFORMANCE MEASURES
Information on the Group's Alternative Performance Measures is incorporated herein by reference to the section "Alternative Performance Measures" on pages 559 to 560 of the 2023 Universal Registration Document in its Appendix IV "Glossary".
OTHER DEFINITIONS
Information on the Group's Other Definitions is incorporated herein by reference to the section "Other Definitions" on pages 560 to 562 of the 2023 Universal Registration Document in its Appendix IV "Glossary".
II. Consolidated Interim Financial Statements
/
June 30, 2024
GIE_AXA_Internal
| II.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 33 | |
|---|---|
| II.2 CONSOLIDATED STATEMENT OF PROFIT OR LOSS 35 | |
| II.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 36 | |
| II.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 37 | |
| II.5 CONSOLIDATED STATEMENT OF CASH FLOWS 38 | |
| II.6 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 40 | |
| NOTE 1 ACCOUNTING PRINCIPLES 40 | |
| NOTE 2 SCOPE OF CONSOLIDATION 43 | |
| NOTE 3 CONSOLIDATED STATEMENT OF PROFIT OR LOSS BY SEGMENT 47 | |
| NOTE 4 TRANSACTIONS IN CONSOLIDATED ENTITIES 50 | |
| NOTE 5 INVESTMENTS 51 | |
| NOTE 6 SHAREHOLDERS' EQUITY AND NON-CONTROLLING INTERESTS 59 | |
| NOTE 7 INSURANCE AND REINSURANCE CONTRACTS 64 | |
| NOTE 8 FINANCING DEBT 80 | |
| NOTE 9 FINANCIAL RESULT, EXCLUDING FINANCING DEBT EXPENSES 81 | |
| NOTE 10 NET INCOME PER ORDINARY SHARE 83 | |
| NOTE 11 SUBSEQUENT EVENTS 84 | |
In this document, unless provided otherwise, "restated" refers to the comparative period that was restated following the termination in 2024 of the sale agreement of a closed life and pensions portfolio at AXA Germany, classified as held for sale in 2023. Please refer to Note 4.
II CONSOLIDATED INTERIM FINANCIAL STATEMENTS
II.1 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Notes | (in Euro million) | June 30, 2024 |
December 31, 2023, restated |
|---|---|---|---|
| Goodwill | 18,171 | 17,855 | |
| Other intangible assets | 4,653 | 4,630 | |
| Intangible assets | 22,823 | 22,485 | |
| Investments in real estate properties | 28,904 | 29,542 | |
| Financial investments | 403,418 | 406,932 | |
| Assets backing contracts where the financial risk is borne by policyholders | 86,635 | 82,753 | |
| 5 | Investments from insurance activities | 518,957 | 519,227 |
| 5 | Investments from banking and other activities | 19,775 | 20,812 |
| Investments accounted for using the equity method | 1,753 | 1,938 | |
| Assets arising from insurance contracts and investment contracts with discretionary participation features | 6 | 11 | |
| Assets arising from reinsurance contracts held | 25,541 | 25,211 | |
| 7 | Assets arising from insurance contracts, investment contracts, and reinsurance contracts held | 25,547 | 25,222 |
| of which present value of future cash flows | 22,827 | 24,059 | |
| of which risk adjustment for non-financial risk | 492 | 488 | |
| of which contractual service margin Derivative assets |
2,228 8,919 |
675 11,156 |
|
| Tangible assets | 2,372 | 2,095 | |
| Deferred tax assets | 3,603 | 3,337 | |
| Other assets | 14,894 | 16,588 | |
| Current tax receivables | 848 | 721 | |
| Other receivables | 11,910 | 11,882 | |
| Receivables | 12,758 | 12,603 | |
| Assets held for sale | 346 | 127 | |
| Cash and cash equivalents | 22,077 | 25,384 | |
| TOTAL ASSETS | 638,931 | 644,385 |
II
| Notes | (in Euro million) | June 30, 2024 |
December 31, 2023, restated |
|---|---|---|---|
| Shareholders' equity – Group share | 47,340 | 49,579 | |
| of which Net income - Group share | 4,020 | 7,189 | |
| Non-controlling interests | 2,742 | 2,819 | |
| 6 | TOTAL SHAREHOLDERS' EQUITY | 50,082 | 52,398 |
| Subordinated debt | 11,099 | 11,020 | |
| Financing debt instruments issued | 3,227 | 2,411 | |
| 8 | Financing debt | 14,326 | 13,431 |
| 7 | Liabilities arising from insurance contracts and investment contracts with discretionary participation features | 461,855 | 469,031 |
| Liabilities arising from other investment contracts | 12,303 | 12,110 | |
| 7 | Liabilities arising from reinsurance contracts held | 8 | 8 |
| Liabilities arising from insurance contracts, investment contracts, and reinsurance contracts held | 474,166 | 481,149 | |
| of which present value of future cash flows | 435,290 | 443,162 | |
| of which risk adjustment for non-financial risk | 3,085 | 3,125 | |
| of which contractual service margin | 35,792 | 34,862 | |
| Liabilities arising from banking activities | 10,313 | 10,603 | |
| Provisions for risks and charges | 4,964 | 5,439 | |
| Derivative liabilities | 13,275 | 13,948 | |
| Deferred tax liabilities | 2,116 | 1,728 | |
| Other liabilities | 15,391 | 15,676 | |
| Non-controlling interests of controlled investment funds and puttable instruments held by non-controlling interests |
8,934 | 7,593 | |
| Other debt instruments issued, notes and bank overdrafts | 12,484 | 11,064 | |
| Current tax payables | 1,575 | 1,279 | |
| Collateral debts relating to investments under a lending agreement or equivalent | 33,968 | 32,079 | |
| Other payables | 12,728 | 13,672 | |
| Payables | 69,689 | 65,688 | |
| Liabilities held for sale | 0 | 0 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 638,931 | 644,385 |
II.2 CONSOLIDATED STATEMENT OF PROFIT OR LOSS
| Notes | (in Euro million, except EPS in Euro) | June 30, 2024 |
June 30, 2023 |
|---|---|---|---|
| 7 | Insurance revenue | 42,288 | 39,194 |
| Fees and charges relating to investment contracts with no discretionary participation features | 117 | 118 | |
| Revenues from other activities | 1,125 | 1,403 | |
| Revenues from all activities | 43,529 | 40,715 | |
| 7 | Insurance service expenses | (35,555) | (33,627) |
| 7 | Net expenses from reinsurance contracts held | (2,279) | (1,209) |
| Expenses from other activities | (1,613) | (1,505) | |
| Expenses from all activities | (39,447) | (36,341) | |
| Result from all activities | 4,082 | 4,374 | |
| 9 | Net investment income | 6,426 | 5,549 |
| Net realized gains and losses relating to investments at cost and at fair value through Other Comprehensive Income (OCI) |
423 | (1,300) | |
| Net realized gains and losses and change in fair value of investments at fair value through profit or loss | 4,322 | 4,532 | |
| Change in impairment on investments | (211) | (161) | |
| 9 | Investment return | 10,960 | 8,620 |
| 7 | Net finance income or expenses from insurance contracts issued | (9,924) | (7,603) |
| 7 | Net finance income or expenses from reinsurance contracts held | 726 | 155 |
| Net finance income or expenses from insurance and reinsurance contracts | (9,198) | (7,448) | |
| Financial result excluding financing debt expenses | 1,762 | 1,172 | |
| Other income and expenses | (107) | (509) | |
| Change in impairment on goodwill and other intangible assets | (0) | (1) | |
| Other operating income and expenses | (107) | (510) | |
| Operating profit before tax | 5,737 | 5,037 | |
| Income (net of impairment) from investments accounted for using the equity method | 60 | 200 | |
| Financing debts expenses | (292) | (306) | |
| Profit before tax | 5,505 | 4,931 | |
| Income tax | (1,390) | (994) | |
| Net income | 4,115 | 3,937 | |
| Split between: | |||
| Net income - Group share | 4,020 | 3,833 | |
| Net income - Non-controlling interests | 94 | 104 | |
| 10 | Earnings per share | 1.77 | 1.67 |
| 10 | Fully diluted earnings per share | 1.77 | 1.67 |
II.3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| June 30, | June 30, | |
|---|---|---|
| (in Euro million) | 2024 | 2023 |
| Net income | 4,115 | 3,937 |
| Changes in fair value of financial instruments TUV | (6,018) | 4,747 |
| Net finance income and expenses from insurance contracts issued | 5,032 | (4,165) |
| Net finance income and expenses from reinsurance contracts held | (336) | 395 |
| Foreign currency translation differences | 302 | (781) |
| Items that may be reclassified subsequently to Profit or Loss | (1,020) | 195 |
| Realized capital gains or losses on equity instruments, without recycling in Profit or Loss TXV | 5 | 31 |
| Change in fair value of equity instruments, without recycling in Profit or Loss TWV TXV | 133 | 349 |
| Actuarial gains and losses from defined benefit plans | 221 | 568 |
| Change in fair value of financial liabilities attributable to changes in credit risk | (1) | (1) |
| Items that may not be reclassified subsequently to Profit or Loss | 356 | 947 |
| Other comprehensive income, net of tax | (663) | 1,142 |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 3,452 | 5,079 |
| Split between: | ||
| Comprehensive Income - Group share | 3,412 | 4,927 |
| Comprehensive Income - Non-controlling interests | 40 | 152 |
(a) Including changes in the fair value of cash flows hedge reserve and cost of hedging reserve.
(b) Including changes in the fair value hedge reserve of equity instruments.
(c) Including reactivity from insurance contracts, without recycling in Profit or Loss.
GIE_AXA_Internal
II.4 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| ( in E mi llio for mb f sh d n ina l pt uro n, e xce nu er o are s an om val ue) |
ber of Num sha res (in t hous ands ) |
ina l Nom val ue (in E uro) |
Pai d-in ital cap |
Oth er r ese rve s ize d rec ogn thr h O CI oug |
Und d ate sub ord ina ted deb ts |
nsl atio Tra n res erv es |
loy Em p ee ben efit s |
ain ed Ret nin ear gs |
Sha reh old ' ers ity equ gro up sha re |
Non llin tro con g inte ts res |
al Tot sha reh old ' ers ity equ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sha reh old uity eni ' eq Jan y 1 , 20 24 ers op ng uar |
2,2 70, 189 |
2.2 9 |
22, 130 |
(6,3 27) |
5,4 39 |
(2,4 42) |
(2,3 64) |
33, 143 |
49, 579 |
2,8 19 |
52, 398 |
| Pai d-in ital ca p |
1,31 4 |
2.2 9 |
29 | - | - | - | - | - | 29 | - | 29 |
| Sha re b d co atio ase mp ens n |
- | - | 44 | - | - | - | - | - | 44 | - | 44 |
| har Tre asu ry s es |
- | - | (1,6 28) |
- | - | - | - | - | (1,6 28) |
- | (1,6 28) |
| Und d su bor din d d ebt ate ate |
- | - | - | - | 334 | - | - | (12 3) |
212 | - | 212 |
| (inc effe f ch of ) Oth lud ing es i sol ida tion ct o ers ang n sc ope con |
- | - | - | (0 ) |
- | 0 | (0 ) |
63 | 63 | (11 7) |
(54 ) |
| ide nds id Div pa |
- | - | - | - | - | - | - | (4,3 70) |
(4,3 70) |
- | (4,3 70) |
| of ctio ith sha reh old Imp act tra nsa ns w ers |
1,3 14 |
2.2 9 |
(1,5 55) |
(0 ) |
334 | 0 | (0 ) |
(4,4 30) |
(5,6 50) |
(11 7) |
(5,7 67) |
| inc Net om e |
- | - | - | - | - | - | - | 4,0 20 |
4,0 20 |
94 | 4,1 15 |
| Oth hen e (O CI) sive inc er c om pre om |
- | - | - | (1,1 48) |
21 | 294 | 220 | 4 | (60 9) |
(54 ) |
(66 3) |
| al c hen siv e in e fo r th erio d Tot om pre com e p |
- | - | - | (1,1 48) |
21 | 294 | 220 | 4,0 24 |
3,4 12 |
40 | 3,4 52 |
| uity sin Sha reh old ' eq clo g J 30 , 20 24 ers une |
2,2 71, 503 |
2.2 9 |
20, 575 |
(7,4 75) |
5,7 94 |
(2,1 48) |
(2,1 44) |
32, 737 |
47, 340 |
2,7 42 |
50, 082 |
| ( in E mi llio for mb f sh d n ina l pt uro n, e xce nu er o are s an om ue) val |
ber of Num sha res (in t ) hous ands |
ina l Nom val ue (in E uro) |
Pai d-in ital cap |
Oth er r ese rve s ize d rec ogn thr h O CI oug |
Und d ate sub ord ina ted deb ts |
nsl atio Tra n res erv es |
loy Em p ee efit ben s |
ain ed Ret nin ear gs |
Sha reh old ' ers ity equ gro up sha re |
Non llin tro con g inte ts res |
al Tot sha reh old ' ers ity equ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sha reh old ' eq uity eni Jan y 1 , 20 23 ers op ng uar |
2,3 51, 771 |
2.2 9 |
23, 317 |
(8,7 58) |
5,7 04 |
(1,6 43) |
(2,6 52) |
30, 102 |
46, 072 |
3,0 18 |
49, 090 |
| Pai d-in ital ca p |
(57 ) ,732 |
2.2 9 |
(1,3 84) |
- | - | - | - | - | (1,3 84) |
- | (1,3 84) |
| Sha re b d co atio ase mp ens n |
- | - | 22 | - | - | - | - | - | 22 | - | 22 |
| Tre har asu ry s es |
- | - | 150 | - | - | - | - | - | 150 | - | 150 |
| Und d su bor din d d ebt ate ate |
- | - | - | - | (0 ) |
- | - | (92 ) |
(92 ) |
- | (92 ) |
| Oth (inc lud ing effe f ch es i of sol ida tion ) ct o ers ang n sc ope con |
- | - | - | (0 ) |
- | (0 ) |
- | 5 | 5 | (26 4) |
(25 9) |
| ide nds id Div pa |
- | - | - | - | - | - | - | (3,7 87) |
(3,7 87) |
- | (3,7 87) |
| of ctio ith Imp sha reh old act tra nsa ns w ers |
(57 2) ,73 |
2.2 9 |
(1,2 12) |
(0 ) |
(0 ) |
(0 ) |
- | (3,8 74) |
(5,0 86) |
(26 4) |
(5,3 50) |
| Net inc om e |
- | - | - | - | - | - | - | 3,83 3 |
3,83 3 |
104 | 3,93 7 |
| e (O CI) Oth hen sive inc er c om pre om |
- | - | - | 1,27 3 |
5 | (77 2) |
565 | 23 | 1,09 4 |
48 | 1,14 2 |
| al c hen siv e in e fo r th erio d Tot om pre com e p |
- | - | - | 1,2 73 |
5 | (77 2) |
565 | 3,8 56 |
4,9 27 |
152 | 5,0 79 |
| Sha reh old ' eq uity clo sin g J 30 , 20 23 ers une |
2,2 94, 039 |
2.2 9 |
22, 106 |
(7,4 85) |
5,7 09 |
(2,4 15) |
(2,0 87) |
30, 084 |
45, 912 |
2,9 06 |
48, 819 |
II.5 CONSOLIDATED STATEMENT OF CASH FLOWS
| (in Euro million) | June 30, 2024 |
June 30, 2023, restated |
|---|---|---|
| Profit before tax | 5,505 | 4,931 |
| Net amortization expense TUV | (355) | (299) |
| Change in goodwill impairment and other intangible assets impairment TWV | 0 | 1 |
| Net increase / (write back) in impairment on investments and tangible assets | 236 | 186 |
| Change in fair value of assets and liabilities at fair value through profit or loss | (5,333) | (4,877) |
| Net change in liabilities arising from insurance and investment contracts TXV | (2,709) | 2,476 |
| Net increase / (write back) in other provisions TYV | (67) | (74) |
| Income arising from investments in associates - Equity method | (60) | (200) |
| Adjustment of non cash balances included in the operating income before tax | (8,288) | (2,787) |
| Net realized gains and losses | 617 | 1,595 |
| Financing debt expenses | 292 | 306 |
| Adjustment of balances included in operating income before tax for reclassification to investing or financing activities |
908 | 1,900 |
| Dividends recorded during the period | (1,758) | (1,515) |
| Investment income & expense recorded in profit or loss during the period | (4,726) | (3,995) |
| Adjustment of transactions from accrued to cash basis | (6,485) | (5,510) |
| Net cash impact of deposit accounting | (197) | (470) |
| Dividends and interim dividends collected | 2,504 | 1,618 |
| Interests collected | 8,435 | 7,100 |
| Interests paid (excluding interests on financing and undated subordinated debts, margin calls and other) | (3,100) | (1,917) |
| Net operating cash from banking activities | (23) | (473) |
| Net change in operating receivables and payables | 10,099 | (239) |
| Net cash provided by other assets and liabilities | (2,205) | 406 |
| Tax expenses paid | (803) | (496) |
| Other operating cash impact and non cash adjustment | 86 | 149 |
| Net cash impact of transactions with cash impact not included in the operating income before tax | 14,795 | 5,677 |
| NET CASH PROVIDED / (USED) BY OPERATING ACTIVITIES | 6,435 | 4,212 |
| Purchase of subsidiaries and affiliated companies, net of cash acquired | (232) | (0) |
| Disposal of subsidiaries and affiliated companies, net of cash ceded | 71 | 15 |
| Net cash related to changes in scope of consolidation | (161) | 14 |
| Sales and/or repayment of debt instruments TZV | 25,788 | 22,332 |
| Sales of equities instruments TZV T[V | 9,288 | 8,663 |
| Sales of investment properties held directly or not | 950 | (69) |
| Sales and/or repayment of loans and other assets TZV T\V | 11,305 | 7,530 |
| Net cash related to sales and repayments of investments PQR PSR PTR | 47,331 | 38,456 |
| Purchases of debt instruments TZV | (28,257) | (18,711) |
| Purchases of equity instruments TZV T[V | (11,102) | (8,802) |
| Purchases of investment properties held direct or not | (923) | (1,481) |
| Purchases and/or issues of loans and other assets TZV T\V | (14,056) | (8,896) |
| Net cash related to purchases and issuance of investments PQR PSR PTR | (54,338) | (37,890) |
| Sales of tangible and intangible assets | 1 | 167 |
| Purchases of tangible and intangible assets | (193) | (142) |
| Net cash related to sales and purchases of tangible and intangible assets | (192) | 25 |
|---|---|---|
| Increase in collateral payable/Decrease in collateral receivable | 65,815 | 61,613 |
| Decrease in collateral payable/Increase in collateral receivable | (62,913) | (62,085) |
| Net cash impact of assets lending / borrowing collateral receivables and payables | 2,902 | (473) |
| NET CASH PROVIDED/(USED) BY INVESTING ACTIVITIES | (4,459) | 133 |
| Issuance of equity instruments | 1,527 | 159 |
| Repayments of equity instruments | (2,972) | (1,176) |
| Transactions on treasury shares | 0 | (11) |
| Dividends payout | (4,447) | (3,938) |
| Interests on perpetual debts paid | (134) | (92) |
| Acquisition/sale of interests in subsidiaries without change in control | - | - |
| Net cash related to transactions with shareholders | (6,025) | (5,058) |
| Cash provided by financial debts issuance | 768 | 1,765 |
| Cash used for financial debts repayments | (0) | (1,008) |
| Interests on financing debt paid | (319) | (382) |
| NET CASH RELATED TO GROUP FINANCING | 449 | 376 |
| NET CASH PROVIDED/(USED) BY FINANCING ACTIVITIES | (5,576) | (4,683) |
| NET CASH PROVIDED BY DISCONTINUED OPERATIONS | - | - |
| CASH AND CASH EQUIVALENT AS OF JANUARY 1 PUR | 24,539 | 26,632 |
|---|---|---|
| Net cash provided by operating activities | 6,435 | 4,211 |
| Net cash provided by investing activities | (4,459) | 133 |
| Net cash provided by financing activities | (5,576) | (4,683) |
| Net cash provided by discontinued operations | - | - |
| Impact of change in consolidation method and of reclassifications as held for sale | - | (33) |
| Net impact of foreign exchange fluctuations and reclassification on cash and cash equivalents | 517 | 91 |
| CASH AND CASH EQUIVALENT AS OF JUNE 30 PUR | 21,456 | 26,351 |
(a) Includes premiums/discounts capitalization and relating amortization, amortization of investment and owner occupied properties (held directly).
(b) Includes impairment and amortization of intangible assets booked in the context of business combinations.
(c) Includes impact of reinsurance and change in liabilities arising from contracts where the financial risk is borne by policyholders.
(d) Mainly includes change in provisions for risks & charges, for bad debts/doubtful receivables and change in impairment of assets held for sale.
(e) Includes related derivatives.
(f) Includes equity instruments held directly or by consolidated investment funds as well as non consolidated investment funds. (g) Includes sales/purchases of assets backing insurance & investment contracts where the financial risk is borne by policyholders.
(h) Net of bank overdrafts.
| June 30, | June 30, | |
|---|---|---|
| (in Euro million) | 2024 | 2023, restated |
| Cash and cash equivalents | 22,077 | 27,058 |
| Bank overdrafts TUV | (621) | (707) |
| Cash and cash equivalents PVR | 21,456 | 26,351 |
(a) Included in "Other debt instruments issued and bank overdrafts" of the consolidated statement of financial position.
(b) The "Cash and cash equivalents" item excludes cash backing contracts where the financial risk is borne by policyholders (Unit-Linked contracts).
GIE_AXA_Internal
II.6 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
NOTE 1 ACCOUNTING PRINCIPLES
1.1GENERAL INFORMATION
AXA SA, a French Société Anonyme (the "Company" and, together with its consolidated subsidiaries, "AXA" or the "Group"), is the holding (parent) company and the internal reinsurer of an international financial services group focused on insurance protection. The list of main entities included in the scope of consolidation is provided in Note 2 hereafter.
AXA is listed on Euronext Paris Compartiment A.
The Consolidated Interim Financial Statements for the period from January 1 to June 30, 2024, including associated Notes, were set by the Board of Directors on August 1, 2024.
1.2GENERAL ACCOUNTING PRINCIPLES
The Consolidated Interim Financial Statements are condensed financial statements prepared in accordance with IAS 34 - Interim Financial Reporting, on the basis of IFRS and interpretations of the IFRS Interpretations Committee that are endorsed by the European Union before the end of the reporting period with a compulsory date of January 1, 2024.
When applying IFRS 17 - Insurance Contracts, the Group uses the option provided by the European Union which allows not to apply the annual cohort requirement under IFRS 17 for determining the groups of insurance contracts meeting some criteria (refer to paragraph 1.14.3 of Note 1 Accounting principles of the Notes to the 2023 Consolidated Financial Statements included in the 2023 Universal Registration Document).
The 2024 half year Consolidated Interim Financial Statements should be read in conjunction with the Consolidated Financial Statements included in the 2023 Universal Registration Document.
For existing and unchanged IFRS standards and interpretations, the accounting policies applied in the preparation of the Consolidated Interim Financial Statements are consistent with those applied in the preparation of the Consolidated Financial Statements for the year ended December 31, 2023. The nature and effects of amendments to the IFRS standards first applied in the present Consolidated Interim Financial Statements are summarized in paragraph 1.2.1 below.
1.2.1 IFRS requirements adopted on January 1, 2024
The application of the amendments below as of January 1, 2024 had no material impact on the Group's Consolidated Interim Financial Statements:
- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (including the deferral of its effective date) and Non-current Liabilities with Covenants;
- Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback; and
- Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements.
GIE_AXA_Internal
1.2.2 Standards and amendments published but not yet effective
Amendments to the Classification and Measurement Requirements for Financial Instruments in IFRS 9 - Financial Instruments and IFRS 7 - Financial Instruments: Disclosures
These amendments, issued on May 30, 2024, will be effective on January 1, 2026, with earlier application permitted. They have not yet been endorsed by the European Union.
They result from the post-implementation review of the classification and measurement requirements in IFRS 9 - Financial Instruments and related requirements in IFRS 7 - Financial Instruments: Disclosures. These amendments improve the requirements in IFRS 9 and IFRS 7 related to settling financial liabilities using an electronic payment system as well as to assessing contractual cash flow characteristics of financial assets with contingent features, including those with environmental, social and governance (ESG)-linked features.
The amendments also modify disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and add disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs.
The assessment of their impact on the Group's Consolidated Financial Statements is in progress.
IFRS 18 - Presentation and Disclosure in Financial Statements
IFRS 18 - Presentation and Disclosure in Financial Statements, published on April 9, 2024, will be effective on January 1, 2027, with earlier application permitted. The standard has not yet been endorsed by the European Union.
It is aimed at improving the quality and cross-industry comparability of financial reporting, notably by introducing defined subtotals in the statement of profit or loss, adding new principles for aggregation and disaggregation of information and requiring disclosures about management-defined performance measures. It will replace IAS 1 - Presentation of Financial Statements.
The assessment of its impact on the Group's Consolidated Financial Statements is in progress.
Other IFRS requirements not yet effective
The amendments to IAS 21 - The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, published on August 15, 2023 and effective for annual periods beginning on or after January 1, 2025, are not expected to have a material impact on the Group's Consolidated Financial Statements.
1.2.3 Preparation of financial statements
The preparation of financial statements in accordance with IFRS requires the use of estimates and assumptions. In preparing the Consolidated Interim Financial Statements, significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the Consolidated Financial Statements as at the year ended December 31, 2023.
Disclosures relating to the International tax reform (Pillar Two)
The international tax reform released by Organization for Economic Cooperation and Development (OECD), known as Pillar Two, aims to ensure that an effective taxation of 15 % is reached in each jurisdiction where multinational groups operate. This tax reform is effective in France starting from the 2024 fiscal year. As a result, the Group has to determine the effective tax rate based on Pillar Two rules in each jurisdiction where it operates, and, if this rate is lower than the minimum 15 % rate, an additional tax will have to be paid.
GIE_AXA_Internal
Furthermore, amendments to IAS 12 - Income Taxes issued by the IASB on May 23, 2023 and endorsed by the European Union on November 8, 2023, introduce a mandatory temporary exception in IAS 12, prohibiting both the recognition and disclosure of deferred tax assets and deferred tax liabilities that arise from the implementation of the OECD Pillar Two model rules. The Group applies these amendments starting from 2023.
The Group has initiated a specific project in 2023 to implement Pillar Two model rules. Based on the analysis in progress, main jurisdictions where the Group has an exposure are Bermuda, Ireland and Hong Kong.
In Bermuda, a local corporate income tax of 15 % has been enacted on December 27, 2023. This tax will be effective for fiscal years beginning on or after January 1, 2025. In this context, the Group expects to pay a top-up tax in France on its 2024 expected profits in Bermuda but will be subject to local tax in this jurisdiction starting from fiscal year 2025, which is expected to increase the effective tax rate of the Group in Bermuda and correspondingly reduce any top-up tax requirement in France.
In Ireland, Pillar Two rules have been enacted as of December 18, 2023 and came into effect from January 1, 2024. A local minimum top-up tax has been adopted as part of the overall implementation of the reform.
In Hong Kong, no Pillar Two rules have been enacted yet but a minimum top-up tax at the rate of 15 % is expected to take effect for fiscal years beginning on or after January 1, 2025.
As at June 30, 2024 the current tax expense included €43 million for these new taxes (payable at AXA SA level or at local level in case of local minimum tax being enacted such as in Ireland). This is an estimate, subject to further refinement, as it is based, from one hand, on the calculation method of the effective tax rate Pillar Two which still needs to be clarified on certain aspects and, from the other hand, on projections of results by jurisdictions for corporate entities and most recent financial statements available for investment entities.
GIE_AXA_Internal
NOTE 2 SCOPEOF CONSOLIDATION
2.1 CONSOLIDATED COMPANIES
2.1.1 Main fully consolidated companies
| June 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Change in scope |
Voting rights percentage |
Group share of interests |
Voting rights percentage |
Group share of interests |
|
| AXA SA and Other Holdings | |||||
| AXA SA | Parent company | Parent company | |||
| CFP Management | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Group Operations SAS | 100.00 | 100.00 | 100.00 | 100.00 | |
| Société Beaujon | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA China | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Asia | 100.00 | 100.00 | 100.00 | 100.00 | |
| France | |||||
| AXA France IARD | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA France Vie | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Protection Juridique | 99.99 | 99.99 | 98.52 | 98.51 | |
| Avanssur | 100.00 | 99.81 | 100.00 | 99.81 | |
| AXA France Participations | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Banque | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Banque Financement | 65.00 | 65.00 | 65.00 | 65.00 | |
| Europe | |||||
| Germany | |||||
| AXA Versicherung AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Lebensversicherung AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| Deutsche Ärzteversicherung | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Krankenversicherung AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| Kölnische Verwaltungs AG für Versicherungswerte | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Konzern AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| Roland Rechtsschutz-Versicherungs-AG | 60.00 | 60.00 | 60.00 | 60.00 | |
| United Kingdom & Ireland | |||||
| Guardian Royal Exchange Plc | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA UK Plc | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Insurance UK Plc | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA PPP Healthcare Limited | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Insurance Limited | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Life Europe DAC | 100.00 | 100.00 | 100.00 | 100.00 | |
| Laya Healthcare Limited | 100.00 | 100.00 | 100.00 | 100.00 |
GIE_AXA_Internal
| June 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Change in scope |
Voting rights percentage |
Group share of interests |
Voting rights percentage |
Group share of interests |
|
| Spain | |||||
| AXA Seguros Generales, S.A. | 99.93 | 99.93 | 99.93 | 99.93 | |
| AXA Aurora Vida, S.A. de Seguros | 99.86 | 99.86 | 99.86 | 99.86 | |
| GACM España, S.A.U. | 100.00 | 99.93 | 100.00 | 99.93 | |
| Switzerland | |||||
| AXA Leben AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA-ARAG Rechtsschutz AG | 66.67 | 66.67 | 66.67 | 66.67 | |
| AXA Versicherungen AG | 100.00 | 100.00 | 100.00 | 100.00 | |
| Italy | |||||
| AXA Assicurazioni e Investimenti | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA MPS Vita | 50.00 | 50.00 | 50.00 | 50.00 | |
| + 1 voting right | + 1 voting right | ||||
| AXA MPS Danni | 50.00 | 50.00 | 50.00 | 50.00 | |
| + 1 voting right | + 1 voting right | ||||
| AXA MPS Financial | 100.00 | 50.00 | 100.00 | 50.00 | |
| Belgium and Luxembourg | |||||
| AXA Belgium SA | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Holdings Belgium | 100.00 | 100.00 | 100.00 | 100.00 | |
| Yuzzu SA | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Assurances Luxembourg | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Assurances Vie Luxembourg | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Luxembourg SA | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA XL | |||||
| AXA XL (sub group) TUV | 100.00 | 100.00 | 100.00 | 100.00 | |
| Asia, Africa & EME-LATAM | |||||
| National Mutual International Pty Ltd. | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Mediterranean Holding SA | 100.00 | 100.00 | 100.00 | 100.00 | |
| Japan | |||||
| AXA Holdings Japan | 98.70 | 98.70 | 98.70 | 98.70 | |
| AXA Life Insurance | 100.00 | 98.70 | 100.00 | 98.70 | |
| AXA General Insurance Co. Ltd. | 100.00 | 98.70 | 100.00 | 98.70 | |
| AXA Direct Life Insurance Co. Ltd. | Merged with AXA Life Insurance |
0.00 | 0.00 | 100.00 | 98.70 |
| Hong Kong | |||||
| AXA China Region Limited | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA General Insurance Hong Kong Ltd. | 100.00 | 100.00 | 100.00 | 100.00 | |
| China | |||||
| AXA Tianping | 100.00 | 100.00 | 100.00 | 100.00 |
(a) AXA XL mainly operates in the United States, the United Kingdom, France, Germany, Australia, Switzerland, Netherlands, Italy, Spain, Bermuda and Canada.
| June 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Change in scope |
Voting rights percentage |
Group share of interests |
Voting rights percentage |
Group share of interests |
|
| Indonesia | |||||
| MLC Indonesia | 100.00 | 100.00 | 100.00 | 100.00 | |
| Thailand | |||||
| AXA Insurance Public Company Limited | 99.47 | 86.35 | 99.47 | 86.35 | |
| South Korea | |||||
| AXA General Insurance Co. Ltd. | 99.73 | 99.73 | 99.73 | 99.73 | |
| Colombia | |||||
| AXA Colpatria Seguros | 51.00 | 51.00 | 51.00 | 51.00 | |
| AXA Colpatria Seguros de vida | 51.00 | 51.00 | 51.00 | 51.00 | |
| Morocco | |||||
| AXA Assurance Maroc | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Al Amane Assurance | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Holding Maroc S.A. | 100.00 | 100.00 | 100.00 | 100.00 | |
| Turkey | |||||
| AXA Hayat ve Emeklilik A.S. | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Sigorta AS | 93.03 | 93.03 | 93.03 | 93.03 | |
| AXA Turkey Holding W.L.L | 100.00 | 100.00 | 100.00 | 100.00 | |
| Mexico | |||||
| AXA Seguros S.A. de C.V. | 100.00 | 100.00 | 100.00 | 100.00 | |
| AXA Salud S.A. de C.V. | 80.00 | 80.00 | 80.00 | 80.00 | |
| Singapore | |||||
| AXA Financial Services Singapore pte Ltd. | 100.00 | 100.00 | 100.00 | 100.00 | |
| India | |||||
| AXA India Holding | 100.00 | 100.00 | 100.00 | 100.00 | |
| Nigeria | |||||
| AXA Mansard Insurance Plc (Nigeria) | 76.48 | 76.48 | 76.48 | 76.48 | |
| Brazil | |||||
| AXA Seguros S.A. | 100.00 | 100.00 | 100.00 | 100.00 | |
| Other | |||||
| AXA Investment Managers (sub group) | 97.53 | 97.53 | 97.50 | 97.50 | |
| AXA Assistance SA (sub group) | 100.00 | 100.00 | 100.00 | 100.00 | |
| Colisée Ré | 100.00 | 100.00 | 100.00 | 100.00 | |
| Architas, Ltd. | 100.00 | 100.00 | 100.00 | 100.00 |
NON-CONTROLLING INTERESTS ON CONTROLLED INVESTMENTS FUNDS AND REAL ESTATE COMPANIES
As of June 30, 2024, non-controlling interests in consolidated investment funds amounted to €8,934 million, (€7,593 million as of December 31, 2023). In most investment funds (particularly open-ended investment funds), non-controlling interests are presented as liabilities under "Non-controlling interests of consolidated investment funds". Non-controlling interests related to consolidated investment funds and real estate companies that are classified in shareholder's equity amounted to €1,510 million as of June 30, 2024 (€1,543 million as of December 31, 2023).
2.1.2 Main investments in entities accounted for using the equity method
Companies accounted for using the equity method listed below exclude investment funds and real estate entities:
| June 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| Change in scope |
Voting rights percentage |
Group share of interests |
Voting rights percentage |
Group share of interests |
|
| France | |||||
| Neuflize Vie | 39.98 | 39.98 | 39.98 | 39.98 | |
| Asia, Africa & EME-LATAM | |||||
| Philippines AXA Life Insurance Corporation | 45.00 | 45.00 | 45.00 | 45.00 | |
| Krungthai AXA Life Insurance Company Ltd. (Thailand) | 50.00 | 50.00 | 50.00 | 50.00 | |
| ICBC-AXA Life Insurance Co., Ltd. (China) | 27.50 | 27.50 | 27.50 | 27.50 | |
| PT AXA Mandiri Financial Services (Indonesia) | 49.00 | 49.00 | 49.00 | 49.00 | |
| Reso Garantia (Russia) | 38.61 | 38.61 | 38.61 | 38.61 | |
| Bharti AXA Life (India) | Disposal | 0.00 | 0.00 | 49.00 | 49.00 |
| Other | |||||
| Capza (Asset Management - France) | 65.74 | 64.12 | 65.74 | 64.10 | |
| Kyobo AXA Investment Managers Company Limited (South Korea) |
50.00 | 48.76 | 50.00 | 48.75 | |
| AXA SPDB Investment Managers Company Ltd. (China) | 39.00 | 38.04 | 39.00 | 38.02 |
NOTE 3 CONSOLIDATED STATEMENTOF PROFITOR LOSS BY SEGMENT
AXA's Chief Executive Officer (CEO), acting as chief operating decision maker, is a member of the Board of Directors. He is assisted by a Management Committee in the operational management of the Group and by a group of senior executives, the Partners Group, in developing and implementing any strategic initiatives. The financial information related to AXA's business segments and holding companies reported to the Board of Directors twice a year is consistent with the presentation provided in the Consolidated Financial Statements.
The results of operating activities and non-operating activities are presented on the basis of six segments: France, Europe, AXA XL, Asia, Africa & EME-LATAM, AXA Investment Managers, and Transversal & Other.
As of June 30, 2024, the CEOs supervising the main hubs (respectively CEO of AXA France, CEO of AXA in Europe, CEO of AXA XL, CEO of AXA International Markets, and CEO of AXA Investment Managers) are members of the Management Committee.
Key transversal entities and Central Holdings are managed alongside these hubs.
France: the French market consists of Life & Health and Property & Casualty activities, AXA Banque France and French holdings.
Europe: the European market consists of Life & Health and Property & Casualty activities in Switzerland, Germany, Belgium, Luxembourg, Spain and Italy, Health and Property & Casualty activities in United Kingdom and Ireland as well as Life activities in AXA Life Europe. The holding companies in these countries are also included.
AXA XL: the AXA XL market mainly consists of Property & Casualty activities in XL Group, operating mainly in the United States, the United Kingdom, France, Germany, Australia, Switzerland, Netherlands, Italy, Spain, Bermuda and Canada. The holding companies are also included.
Asia, Africa & EME-LATAM:
The Asian market consists of Life & Health and Property & Casualty activities in Japan, Hong Kong, the Philippines, Thailand and China, Life & Health activities in Indonesia and India (disposed during the first semester of 2024) as well as Property & Casualty and Health activities in South Korea. The holding company in Japan and the other Asia holdings are also included.
The African market consists of Life & Health and Property & Casualty activities in Morocco and Nigeria. The holding companies in these countries are also included.
The EME – LATAM market consists of Life & Health and Property & Casualty activities in Colombia, Mexico and Türkiye, Property & Casualty activities in Brazil and Russia. The holding company in Brazil, Türkiye and other holding companies are also included.
AXA Investment Managers: the AXA Investment Managers (includes, Select (previously referred to as Architas), Capza, and Asian joint ventures accounted for under the equity method) market includes the asset management activity.
Transversal & Other: it includes transversal entities namely AXA Assistance, AXA Liabilities Managers, AXA SA, and other Central Holdings.
The intersegment eliminations include only operations between entities from different countries and operating activities. They mainly relate to reinsurance treaties, assistance guarantees recharging, asset management fees and interests on loans within the Group.
In this document, "Insurance" covers the two insurance activities: Life & Health and Property & Casualty.
3.1CONSOLIDATED STATEMENT OF PROFIT OR LOSS BY SEGMENT
| June 30, 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Asia, Africa & |
||||||||
| EME | Transversal | Intersegment | ||||||
| (in Euro million) | France | Europe | AXA XL | LATAM | AXA IM | & Other | Eliminations | Total |
| Insurance revenue Fees and charges relating to investment |
10,916 | 15,887 | 9,171 | 6,081 | - | 771 | (539) | 42,288 |
| contracts with no discretionary participation features |
0 | 88 | - | 29 | - | - | - | 117 |
| Revenues from other activities | 38 | 143 | 36 | 23 | 937 | 282 | (335) | 1,125 |
| Revenues from all activities | 10,954 | 16,119 | 9,207 | 6,133 | 937 | 1,054 | (874) | 43,529 |
| Insurance service expenses | (9,420) | (13,944) | (6,332) | (5,410) | - | (825) | 376 | (35,555) |
| Net expenses from reinsurance contracts held | (336) | (345) | (1,694) | (166) | - | 77 | 185 | (2,279) |
| Expenses from other activities | (88) | (157) | (21) | (32) | (669) | (1,135) | 489 | (1,613) |
| Expenses from all activities | (9,845) | (14,446) | (8,047) | (5,609) | (669) | (1,882) | 1,050 | (39,447) |
| Result from all activities | 1,110 | 1,673 | 1,160 | 524 | 268 | (829) | 176 | 4,082 |
| Investment return | 3,993 | 3,384 | 706 | 3,033 | 22 | 140 | (318) | 10,960 |
| Net finance income or expenses from | (4,201) | (2,728) | (579) | (2,346) | - | (70) | (0) | (9,924) |
| insurance contracts issued Net finance income or expenses from reinsurance contracts held |
502 | (71) | 260 | (25) | - | 52 | 7 | 726 |
| Net finance income or expenses from insurance and reinsurance contracts |
(3,699) | (2,799) | (319) | (2,370) | - | (17) | 7 | (9,198) |
| Financial result excluding financing debt expenses |
294 | 585 | 386 | 663 | 22 | 122 | (311) | 1,762 |
| Other income and expenses | (110) | (165) | (153) | (49) | (33) | 481 | (78) | (107) |
| Change in impairment on goodwill and other intangible assets |
- | - | - | - | - | (0) | - | (0) |
| Other operating income and expenses | (110) | (165) | (153) | (49) | (33) | 481 | (78) | (107) |
| Operating profit before tax | 1,294 | 2,093 | 1,393 | 1,138 | 257 | (226) | (213) | 5,737 |
| Income (net of impairment) from investments accounted for using the equity method |
(9) | (0) | - | 55 | 14 | - | - | 60 |
| Financing debts expenses | (8) | (9) | (25) | (11) | (2) | (453) | 216 | (292) |
| Profit before tax | 1,277 | 2,084 | 1,368 | 1,182 | 269 | (678) | 3 | 5,505 |
| Income tax | (316) | (507) | (349) | (264) | (69) | 117 | (3) | (1,390) |
| Net income | 961 | 1,577 | 1,020 | 918 | 200 | (562) | - | 4,115 |
| Split between: Net income - Group share Net income - Non-controlling interests |
961 (0) |
1,528 49 |
1,020 0 |
879 39 |
194 6 |
(562) 0 |
- - |
4,020 94 |
| June 30, 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| (in Euro million) | France | Europe | AXA XL | Asia, Africa & EME LATAM |
AXA IM | Transversal & Other |
Intersegment Eliminations |
Total |
| Insurance revenue | 10,170 | 14,766 | 8,801 | 5,290 | - | 723 | (556) | 39,194 |
| Fees and charges relating to investment contracts with no discretionary participation features |
0 | 88 | - | 30 | - | - | - | 118 |
| Revenues from other activities | 68 | 73 | 44 | 16 | 906 | 680 | (386) | 1,403 |
| Revenues from all activities | 10,238 | 14,927 | 8,845 | 5,336 | 906 | 1,404 | (942) | 40,715 |
| Insurance service expenses | (8,935) | (12,966) | (6,838) | (4,659) | - | (718) | 490 | (33,627) |
| Net expenses from reinsurance contracts held | (63) | (256) | (977) | (42) | - | 25 | 104 | (1,209) |
| Expenses from other activities | (96) | (94) | (24) | (22) | (651) | (1,059) | 440 | (1,505) |
| Expenses from all activities | (9,095) | (13,317) | (7,839) | (4,723) | (651) | (1,752) | 1,034 | (36,341) |
| Result from all activities | 1,144 | 1,611 | 1,006 | 613 | 256 | (349) | 93 | 4,374 |
| Investment return | 2,481 | 3,026 | 427 | 2,779 | 14 | 151 | (258) | 8,620 |
| Net finance income or expenses from insurance contracts issued |
(2,607) | (2,567) | (203) | (2,217) | - | (4) | (4) | (7,603) |
| Net finance income or expenses from reinsurance contracts held |
85 | (7) | 79 | (4) | - | 2 | 1 | 155 |
| Net finance income or expenses from insurance and reinsurance contracts |
(2,523) | (2,574) | (124) | (2,221) | - | (2) | (4) | (7,448) |
| Financial result excluding financing debt expenses |
(41) | 452 | 303 | 558 | 14 | 149 | (261) | 1,172 |
| Other income and expenses | (147) | (114) | (223) | (44) | (36) | 72 | (16) | (509) |
| Change in impairment on goodwill and other intangible assets |
- | - | (1) | - | - | - | - | (1) |
| Other operating income and expenses | (147) | (114) | (224) | (44) | (36) | 72 | (16) | (510) |
| Operating profit before tax | 955 | 1,949 | 1,085 | 1,127 | 233 | (128) | (184) | 5,037 |
| Income (net of impairment) from investments accounted for using the equity method |
8 | (0) | - | 179 | 13 | - | - | 200 |
| Financing debts expenses | (5) | (8) | (26) | (13) | (0) | (438) | 185 | (306) |
| Profit before tax | 958 | 1,941 | 1,059 | 1,293 | 246 | (567) | 1 | 4,931 |
| Income tax | (177) | (426) | (221) | (214) | (65) | 111 | (1) | (994) |
| Net income | 781 | 1,515 | 839 | 1,079 | 181 | (456) | - | 3,937 |
| Split between: | ||||||||
| Net income - Group share Net income - Non-controlling interests |
780 1 |
1,460 54 |
838 0 |
1,034 44 |
176 4 |
(456) 0 |
- - |
3,833 104 |
NOTE 4 TRANSACTIONS INCONSOLIDATEDENTITIES
4.1DISPOSAL OF A CLOSED LIFE AND PENSION PORTFOLIO IN GERMANY
On May 2, 2024, AXA and Athora Deutschland GmbH ("Athora Germany"), a licensed insurer in Germany, mutually agreed to terminate the sale agreement related to a closed life and pensions portfolio in AXA Germany, which was initially communicated on July 14, 2022. AXA will retain this portfolio, which is well capitalized and duration matched.
As a consequence, the related assets and liabilities were no longer classified as held for sale as of June 30, 2024, and the consolidated statement of financial position as of December 31, 2023, has been restated accordingly in this report.
The major classes of assets and liabilities (net of intercompany balances with other AXA entities), which have been restated from held for sale, are presented in the table below:
ASSETS
| (In Euro million) | December 31, 2023 published |
December 31, 2023, restated |
Effect of restatement |
|---|---|---|---|
| Assets held for sale | 13,060 | - | (13,060) |
| Investments from insurance activities | - | 12,455 | 12,455 |
| Assets arising from insurance contracts, investment contracts, and reinsurance contracts held | - | 7 | 7 |
| Other assets | - | 186 | 186 |
| Cash and cash equivalents | - | 412 | 412 |
| TOTAL ASSETS | 13,060 | 13,060 | (0) |
LIABILITIES
| (in Euro million) | December 31, 2023 published |
December 31, 2023, restated |
Effect of restatement |
|---|---|---|---|
| Liabilities held for sale | 12,795 | - | (12,795) |
| Liabilities arising from insurance contracts, investment contracts, and reinsurance contracts held | - | 12,155 | 12,155 |
| Other liabilities | - | 640 | 640 |
| TOTAL LIABILITIES | 12,795 | 12,795 | (0) |
NOTE 5 INVESTMENTS
It should be noted that the amounts disclosed in the present Note as impacting the Group's consolidated comprehensive income do not consider the induced effects relating to insurance liabilities, notably those arising from contracts with direct participating features (see Note 7) and, therefore, do not represent net ultimate gains or losses recognized in the consolidated statement of comprehensive income.
5.1BREAKDOWN OF INVESTMENTS
The tables below present the fair value and the carrying value of the Group's investments, broken down by (i) class of investments, (ii) classification category according to IFRS 9 - Financial Instruments (namely, investments measured at amortized cost, at fair value through other comprehensive income ("FV OCI") or at fair value through profit or loss ("FV P&L") and (iii) activity to which those investments are allocated:
| June 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Insurance | Other activities | Total | |||||||
| (in Euro million, except percentages) | Fair value |
Carrying value |
% of total investments |
Fair value |
Carrying value |
% of total investments |
Fair value |
Carrying value |
% of total investments |
| Investments in real estate properties at amortized cost (A) | 37,002 | 28,904 | 5.6% | 3,071 | 3,043 | 15.4% | 40,073 | 31,947 | 5.9% |
| Debt instruments at amortized cost | 14,435 | 15,667 | 3.0% | 9 | 9 | 0.0% | 14,444 | 15,676 | 2.9% |
| Debt instruments at FV OCI | 281,929 | 281,929 | 54.3% | 4,885 | 4,885 | 24.7% | 286,815 | 286,815 | 53.2% |
| Debt instruments at FV P&L - FV Option | 1,105 | 1,105 | 0.2% | - | - | 0.0% | 1,105 | 1,105 | 0.2% |
| Debt instruments at FV P&L - Mandatory | 14,724 | 14,724 | 2.8% | 45 | 45 | 0.2% | 14,770 | 14,770 | 2.7% |
| Debt instruments (B) | 312,194 | 313,425 | 60.4% | 4,940 | 4,940 | 25.0% | 317,134 | 318,365 | 59.1% |
| Equity instruments at FV OCI without recycling to P&L | 12,459 | 12,459 | 2.4% | 1,356 | 1,356 | 6.9% | 13,815 | 13,815 | 2.6% |
| Equity instruments at FV P&L | 17,079 | 17,079 | 3.3% | 486 | 486 | 2.5% | 17,565 | 17,565 | 3.3% |
| Equity instruments (C) | 29,538 | 29,538 | 5.7% | 1,842 | 1,842 | 9.3% | 31,380 | 31,380 | 5.8% |
| Non consolidated investment funds at FV P&L (D) | 18,689 | 18,689 | 3.6% | 129 | 129 | 0.7% | 18,818 | 18,818 | 3.5% |
| Other assets at FV P&L, held by consolidated investment funds (E) |
22,204 | 22,204 | 4.3% | 761 | 761 | 3.9% | 22,966 | 22,966 | 4.3% |
| Financial investments excluding loans (F=B+C+D+E) | 382,625 | 383,857 | 74.0% | 7,672 | 7,672 | 38.8% | 390,297 | 391,529 | 72.7% |
| Loans at amortized cost | 15,934 | 16,078 | 3.1% | 9,052 | 9,061 | 45.8% | 24,986 | 25,138 | 4.7% |
| Loans at FV P&L - FV Option | 3,462 | 3,462 | 0.7% | - | - | 0.0% | 3,462 | 3,462 | 0.6% |
| Loans at FV P&L - Mandatory | 21 | 21 | 0.0% | - | - | 0.0% | 21 | 21 | 0.0% |
| Loans (G) | 19,417 | 19,561 | 3.8% | 9,052 | 9,061 | 45.8% | 28,469 | 28,621 | 5.3% |
| Total financial investments (H=F+G) | 402,043 | 403,418 | 77.7% | 16,724 | 16,732 | 84.6% | 418,766 | 420,150 | 78.0% |
| Assets backing contracts where the financial risk is borne by policyholders (I) |
86,673 | 86,635 | 16.7% | - | - | 0.0% | 86,673 | 86,635 | 16.1% |
| INVESTMENTS (J=A+H+I) | 525,718 | 518,957 | 100.0% | 19,794 | 19,775 | 100.0% | 545,512 | 538,732 | 100.0% |
| Investments (excluding those backing contracts where the financial risk is borne by policyholders) (K=J-I) |
439,045 | 432,322 | 83.3% | 19,794 | 19,775 | 100.0% | 458,839 | 452,097 | 83.9% |
| December 31, 2023, restated | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Insurance | Other activities | Total | |||||||
| (in Euro million, except percentages) | Fair value |
Carrying value |
% of total investments |
Fair value |
Carrying value |
% of total investments |
Fair value |
Carrying value |
% of total investments |
| Investments in real estate properties at amortized cost (A) | 38,360 | 29,542 | 5.7% | 3,030 | 3,001 | 14.4% | 41,391 | 32,543 | 6.0% |
| Debt instruments at amortized cost | 14,729 | 16,062 | 3.1% | 9 | 9 | 0.0% | 14,738 | 16,072 | 3.0% |
| Debt instruments at FV OCI | 288,233 | 288,233 | 55.5% | 5,014 | 5,014 | 24.1% | 293,246 | 293,246 | 54.3% |
| Debt instruments at FV P&L - FV Option | 1,356 | 1,356 | 0.3% | 0 | 0 | 0.0% | 1,356 | 1,356 | 0.3% |
| Debt instruments at FV P&L - Mandatory | 13,489 | 13,489 | 2.6% | 46 | 46 | 0.2% | 13,535 | 13,535 | 2.5% |
| Debt instruments (B) | 317,806 | 319,139 | 61.5% | 5,069 | 5,069 | 24.4% | 322,875 | 324,208 | 60.0% |
| Equity instruments at FV OCI without recycling to P&L | 12,137 | 12,137 | 2.3% | 1,617 | 1,617 | 7.8% | 13,753 | 13,753 | 2.5% |
| Equity instruments at FV P&L | 15,626 | 15,626 | 3.0% | 486 | 486 | 2.3% | 16,112 | 16,112 | 3.0% |
| Equity instruments (C) | 27,763 | 27,763 | 5.3% | 2,103 | 2,103 | 10.1% | 29,865 | 29,865 | 5.5% |
| Non consolidated investment funds at FV P&L (D) | 18,595 | 18,595 | 3.6% | 142 | 142 | 0.7% | 18,737 | 18,737 | 3.5% |
| Other assets at FV P&L, held by consolidated investment funds (E) |
21,332 | 21,332 | 4.1% | 756 | 756 | 3.6% | 22,088 | 22,088 | 4.1% |
| Financial investments excluding loans (F=B+C+D+E) | 385,496 | 386,829 | 74.5% | 8,070 | 8,070 | 38.8% | 393,566 | 394,899 | 73.1% |
| Loans at amortized cost | 16,110 | 16,387 | 3.2% | 9,741 | 9,741 | 46.8% | 25,851 | 26,129 | 4.8% |
| Loans at FV P&L - FV Option | 3,698 | 3,698 | 0.7% | 0 | 0 | 0.0% | 3,698 | 3,698 | 0.7% |
| Loans at FV P&L - Mandatory | 17 | 17 | 0.0% | 0 | 0 | 0.0% | 17 | 17 | 0.0% |
| Loans (G) | 19,825 | 20,103 | 3.9% | 9,741 | 9,741 | 46.8% | 29,566 | 29,844 | 5.5% |
| Total financial investments (H=F+G) | 405,321 | 406,932 | 78.4% | 17,811 | 17,811 | 85.6% | 423,132 | 424,743 | 78.7% |
| Assets backing contracts where the financial risk is borne by policyholders (I) |
82,449 | 82,753 | 15.9% | 0 | 0 | 0.0% | 82,449 | 82,753 | 15.3% |
| INVESTMENTS (J=A+H+I) | 526,131 | 519,227 | 100.0% | 20,841 | 20,812 | 100.0% | 546,972 | 540,039 | 100.0% |
| Investments (excluding those backing contracts where the financial risk is borne by policyholders) (K=J-I) |
443,682 | 436,474 | 84.1% | 20,841 | 20,812 | 100.0% | 464,523 | 457,286 | 84.7% |
Unless otherwise specified, the information disclosed in the following paragraphs of Note 5 does not include the amounts related to the Group's investments backing contracts where the financial risk is borne by policyholders.
5.2 INVESTMENT IN REAL ESTATE PROPERTIES
Investments in real estate properties include buildings owned directly and through consolidated real estate entities.
Real estate properties held by AXA are measured at amortized cost. The table below presents the carrying value (disclosing separately cumulated amortization and impairment) and the fair value of those investments.
| June 30, 2024 | December 31, 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in Euro million) | Gross value |
Amortization | Impairment | Carrying value |
Fair value |
Gross value |
Amortization | Impairment | Carrying value |
Fair value |
|
| Total investments in real estate properties |
35,113 | (1,504) | (1,662) | 31,947 | 40,073 | 35,594 | (1,575) | (1,476) | 32,543 | 41,391 |
The following table provides a reconciliation from the opening balances to the closing balances for the cumulated amounts of impairment and amortization on investment in real estate properties:
| Impairment | Amortization | ||||
|---|---|---|---|---|---|
| (in Euro million) | June 30, 2024 |
December 31, 2023 |
June 30, 2024 |
December 31, 2023 |
|
| Opening balance | 1,476 | 1,320 | 1,575 | 1,449 | |
| Increase | 196 | 299 | 48 | 118 | |
| Write back following sale or reimbursement | (2) | (37) | (43) | (31) | |
| Write back following recovery in value | (11) | (130) | - | - | |
| Other impacts (a) | 4 | 24 | (76) | 38 | |
| Closing balance | 1,662 | 1,476 | 1,504 | 1,575 |
(a) Includes impacts of changes in scope of consolidation and movements in exchange rates.
5.3UNREALIZED GAINS AND LOSSES ON FINANCIAL INVESTMENTS
The tables below disclose unrealized capital gains and losses not reflected in the consolidated statement of profit or loss ("P&L"), that are related to financial investments measured at amortized cost or at fair value through OCI ("FV OCI"). These unrealized capital gains and losses are broken down by class of financial instruments and IFRS 9 classification category and presented separately for investments allocated to the insurance activity and to other activities:
Insurance
| June 30, 2024 | December 31, 2023, restated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in Euro million) | Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
| Debt instruments at FV OCI | 300,330 | 281,929 | 281,929 | 8,720 | 27,121 | 298,528 | 288,233 | 288,233 | 13,255 | 23,551 |
| Debt instruments at amortized cost | 15,667 | 14,435 | 15,667 | 39 | 1,271 | 16,062 | 14,729 | 16,062 | 47 | 1,380 |
| Equity instruments at FV OCI without recycling to P&L |
10,004 | 12,459 | 12,459 | 3,261 | 806 | 10,267 | 12,137 | 12,137 | 2,656 | 787 |
| Loans at amortized cost | 16,078 | 15,934 | 16,078 | 109 | 252 | 16,387 | 16,110 | 16,387 | 40 | 317 |
| TOTAL | 342,078 | 324,758 | 326,133 | 12,129 | 29,450 | 341,245 | 331,208 | 332,819 | 15,998 | 26,035 |
Other Activities
| June 30, 2024 | December 31, 2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (in Euro million) | Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
|
| Debt instruments at FV OCI | 5,329 | 4,885 | 4,885 | 7 | 450 | 5,359 | 5,014 | 5,014 | 43 | 389 | |
| Debt instruments at amortized cost | 9 | 9 | 9 | - | 0 | 9 | 9 | 9 | 0 | 0 | |
| Equity instruments at FV OCI without recycling to P&L |
1,255 | 1,356 | 1,356 | 253 | 152 | 1,507 | 1,617 | 1,617 | 180 | 70 | |
| Loans at amortized cost | 9,061 | 9,052 | 9,061 | 0 | 9 | 9,741 | 9,741 | 9,741 | 0 | 0 | |
| TOTAL | 15,654 | 15,302 | 15,311 | 260 | 611 | 16,617 | 16,381 | 16,382 | 223 | 459 |
Total
| June 30, 2024 | December 31, 2023, restated | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in Euro million) | Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
Amortized cost |
Fair value |
Carrying value |
Unrealized gains |
Unrealized losses |
| Debt instruments at FV OCI | 305,659 | 286,815 | 286,815 | 8,727 | 27,571 | 303,888 | 293,246 | 293,246 | 13,298 | 23,940 |
| Debt instruments at amortized cost | 15,676 | 14,444 | 15,676 | 39 | 1,271 | 16,072 | 14,738 | 16,072 | 47 | 1,380 |
| Equity instruments at FV OCI without | ||||||||||
| recycling to P&L | 11,259 | 13,815 | 13,815 | 3,514 | 958 | 11,774 | 13,753 | 13,753 | 2,836 | 856 |
| Loans at amortized cost | 25,138 | 24,986 | 25,138 | 109 | 261 | 26,129 | 25,851 | 26,129 | 40 | 317 |
| TOTAL | 357,732 | 340,060 | 341,444 | 12,389 | 30,061 | 357,862 | 347,589 | 349,200 | 16,221 | 26,494 |
5.4 FINANCIAL INVESTMENTS SUBJECT TO IMPAIRMENT
The tables below set out the Group's portfolio of financial investments subject to impairment, namely debt instruments and loans measured at amortized cost or at fair value through OCI ("FV OCI"), broken down by class of financial investments, IFRS 9 classification category and IFRS 9 impairment stage (see Paragraph 1.9.2.2 of Note 1 Accounting principles of the Notes to the 2023 Consolidated Financial Statements included in the 2023 Universal Registration Document), namely:
- stage 1: financial investments for which credit risk has not increased significantly since initial recognition, and the loss allowance is measured at an amount equal to 12 months expected credit losses;
- stage 2: not credit-impaired financial investments for which credit risk has increased significantly since initial recognition, and the loss allowance is measured at an amount equal to lifetime expected credit losses;
- stage 3: financial investments which were not purchased or originated credit impaired but became credit impaired since their initial recognition, and for which the loss allowance is measured at an amount equal to lifetime expected credit losses.
| June 30, 2024 | |||||
|---|---|---|---|---|---|
| (in Euro million) | Cost before impairment and revaluation to fair value |
Impairment | Cost after impairment but before revaluation to fair value |
Revaluation to fair value |
Carrying value |
| Stage 1 | |||||
| Debt instruments at amortized cost | 15,663 | (16) | 15,647 | - | 15,647 |
| Debt instruments at FV OCI | 305,656 | (48) | 305,608 | (19,056) | 286,552 |
| Debt instruments (A) | 321,320 | (65) | 321,255 | (19,056) | 302,199 |
| Loans at amortized cost (B) | 24,009 | (46) | 23,963 | - | 23,963 |
| Total Stage 1 (C=A+B) | 345,329 | (111) | 345,218 | (19,056) | 326,162 |
| Stage 2 | |||||
| Debt instruments at amortized cost | 96 | (68) | 29 | - | 29 |
| Debt instruments at FV OCI | 33 | (7) | 25 | 220 | 246 |
| Debt instruments (D) | 129 | (75) | 54 | 220 | 274 |
| Loans at amortized cost (E) | 609 | (23) | 586 | - | 586 |
| Total Stage 2 (F=D+E) | 738 | (98) | 640 | 220 | 860 |
| Stage 3 | |||||
| Debt instruments at FV OCI | 48 | (22) | 26 | (8) | 17 |
| Debt instruments (G) | 48 | (22) | 26 | (8) | 17 |
| Loans at amortized cost (H) | 826 | (237) | 589 | - | 589 |
| Total Stage 3 (I=G+H) | 874 | (259) | 614 | (8) | 606 |
| Total | |||||
| Total debt instruments at amortized cost | 15,760 | (84) | 15,676 | 15,676 | |
| Total debt instruments at FV OCI | 305,737 | (78) | 305,659 | (18,844) | 286,815 |
| Total debt instruments (J=A+D+G) | 321,497 | (162) | 321,335 | (18,844) | 302,491 |
| Total loans at amortized cost (K=B+E+H) | 25,444 | (306) | 25,138 | - | 25,138 |
| Total financial investments subject to impairment (L=J+K) | 346,941 | (468) | 346,473 | (18,844) | 327,629 |
| Cost after | |||||
|---|---|---|---|---|---|
| Cost before impairment and |
impairment but before |
||||
| revaluation to fair | revaluation to fair | Revaluation to | Carrying | ||
| (in Euro million) | value | Impairment | value | fair value | value |
| Stage 1 | |||||
| Debt instruments at amortized cost | 16,060 | (17) | 16,042 | - | 16,042 |
| Debt instruments at FV OCI | 303,875 | (50) | 303,824 | (10,624) | 293,200 |
| Debt instruments (A) | 319,934 | (67) | 319,867 | (10,624) | 309,242 |
| Loans at amortized cost (B) | 25,116 | (58) | 25,058 | - | 25,058 |
| Total Stage 1 (C=A+B) | 345,050 | (125) | 344,925 | (10,624) | 334,300 |
| Stage 2 | |||||
| Debt instruments at amortized cost | 97 | (68) | 29 | - | 29 |
| Debt instruments at FV OCI | 30 | (8) | 22 | (6) | 16 |
| Debt instruments (D) | 127 | (75) | 52 | (6) | 45 |
| Loans at amortized cost (E) | 549 | (22) | 527 | - | 527 |
| Total Stage 2 (F=D+E) | 676 | (97) | 579 | (6) | 572 |
| Stage 3 | |||||
| Debt instruments at FV OCI | 65 | (24) | 41 | (11) | 31 |
| Debt instruments (G) | 65 | (24) | 41 | (11) | 31 |
| Loans at amortized cost (H) | 732 | (187) | 545 | - | 545 |
| Total Stage 3 (I=G+H) | 796 | (211) | 586 | (11) | 575 |
| Total | |||||
| Total debt instruments at amortized cost | 16,157 | (85) | 16,072 | - | 16,072 |
| Total debt instruments at FV OCI | 303,970 | (82) | 303,888 | (10,641) | 293,246 |
| Total debt instruments (J=A+D+G) | 320,126 | (167) | 319,960 | (10,641) | 309,318 |
| Total loans at amortized cost (K=B+E+H) | 26,396 | (267) | 26,129 | - | 26,129 |
| Total financial investments subject to impairment (L=J+K) | 346,522 | (434) | 346,088 | (10,641) | 335,447 |
December 31, 2023, restated
5.5 FAIR VALUE OF INVESTMENTS
The table below presents the breakdown of the fair value of financial investments and investments in real estate properties by fair value hierarchy level as set in IFRS 13 - Fair Value Measurement (see Paragraph 1.6 of Note 1 Accounting principles of the Notes to the 2023 Consolidated Financial Statements included in the 2023 Universal Registration Document). The carrying value of financial investments measured at fair value through profit or loss ("FV P&L") or OCI ("FV OCI") is equal to their fair value.
| June 30, 2024 | December 31, 2023, restated | |||||||
|---|---|---|---|---|---|---|---|---|
| (in Euro million) | Financial assets quoted in an active market Level 1 PYR |
Level 2 PVR | Financial assets not quoted in an active market or no active market Level 3 PZR |
Total | Financial assets quoted in an active market Level 1 PYR |
Level 2 PVR | Financial assets not quoted in an active market or no active market Level 3 PZR |
Total |
| Debt instruments | 216,671 | 69,859 | 285 | 286,815 | 221,306 | 71,656 | 284 | 293,246 |
| Equity instruments | 9,196 | 1,209 | 3,409 | 13,815 | 9,101 | 1,231 | 3,422 | 13,753 |
| Financial assets at FV OCI (A) | 225,867 | 71,068 | 3,694 | 300,630 | 230,406 | 72,887 | 3,706 | 307,000 |
| Debt instruments | 8,127 | 5,832 | 811 | 14,770 | 7,559 | 5,116 | 860 | 13,535 |
| Equity instruments | 4,313 | 1,658 | 11,594 | 17,565 | 3,892 | 1,243 | 10,976 | 16,112 |
| Non consolidated investment funds | 2,626 | 7,987 | 8,205 | 18,818 | 2,064 | 8,677 | 7,997 | 18,737 |
| Other assets, held by consolidated investment funds |
2,343 | 7,757 | 12,866 | 22,966 | 1,863 | 6,940 | 13,285 | 22,088 |
| Loans | - | 17 | 4 | 21 | - | 17 | - | 17 |
| Financial assets at FV P&L (excluding FV option) (B) |
17,409 | 23,250 | 33,480 | 74,139 | 15,378 | 21,993 | 33,118 | 70,489 |
| Debt instruments | 1,105 | - | - | 1,105 | 1,356 | - | - | 1,356 |
| Loans | - | 3,462 | - | 3,462 | - | 3,698 | - | 3,698 |
| Financial assets at FV P&L - FV Option (C) | 1,105 | 3,462 | - | 4,567 | 1,356 | 3,698 | - | 5,053 |
| Total financial investments at fair value (D=A+B+C) |
244,381 | 97,781 | 37,174 | 379,336 | 247,140 | 98,579 | 36,824 | 382,543 |
| Investments in real estate properties | 0 | 39,031 | 1,042 | 40,073 | 0 | 40,268 | 1,123 | 41,391 |
| Debt instruments | 600 | 9,069 | 4,775 | 14,444 | 169 | 9,482 | 5,088 | 14,738 |
| Loans | 1 | 10,806 | 14,180 | 24,986 | 1 | 11,323 | 14,527 | 25,851 |
| Total investments at amortized cost (E) | 601 | 58,906 | 19,997 | 79,503 | 169 | 61,073 | 20,738 | 81,980 |
| TOTAL (F=D+E) | 244,982 | 156,687 | 57,171 | 458,839 | 247,309 | 159,652 | 57,562 | 464,523 |
(a) Level 1: fair value determined directly by reference to an active market.
(b) Level 2: fair value mainly based on observable market data.
(c) Level 3: fair value mainly not based on observable market data.
TRANSFERS BETWEEN LEVEL 1 AND LEVEL 2 FOR THE INVESTMENTS MEASURED AT FAIR VALUE
During the first half of 2024, the bid-to-ask spread tightening across the board led to transfers from level 2 to level 1.
During the period ended on June 30, 2024, the net transfer from Level 2 to Level 1 was €+3,767 million. This amount comprised €2,521 million transferred from Level 1 to Level 2, of which €1,276 million for Corporate bonds and €1,107 million for Government bonds, and €6,288 million from Level 2 to Level 1, of which €4,286 million for Corporate bonds and €1,108 million for Government bonds.
TRANSFER IN AND OUT OF THE LEVEL 3 CATEGORY AND OTHER MOVEMENTS FOR THE INVESTMENTS MEASURED AT FAIR VALUE
From January 1, 2024 to June 30, 2024, the amount of level 3 assets increased by €+0.3 billion to €37.2 billion, representing 9.8% of the total assets at fair value (9.6% as of December 31, 2023 or €36.8 billion, restated).
Main movements relating to level 3 assets to be noted were the following:
- €+2.0 billion of new investments;
- €-0.4 billion of change in unrealized gains and losses;
- €+0.5 billion of net asset transfers, in (€+0.8) and out (€-0.2) of level 3;
- €-0.2 billion of foreign exchange fluctuation impact;
- €-0.2 billion of change in scope and other impacts;
- €-1.4 billion of asset sales, redemptions and settlements mainly equity securities, non-consolidated investment funds, other assets held by controlled investment funds and debt instruments accounted as fair value through profit and loss.
A majority of assets classified in level 3 corresponds to private investments, in particular private equity assets.
NOTE 6 SHAREHOLDERS' EQUITY ANDNON-CONTROLLING INTERESTS
The consolidated statement of changes in equity is presented as a primary Consolidated Interim Financial Statement.
6.1 IMPACT OF TRANSACTIONS WITH SHAREHOLDERS
6.1.1 Change in shareholders' equity group share for the first half of 2024
SHARE CAPITAL AND CAPITAL IN EXCESS OF NOMINAL VALUE
During the first half of 2024, the following transactions had an impact on AXA's share capital and capital in excess of nominal value:
- shared based payments for €44 million.
- capital increase of €29 million due to the exercise of stock options for 1.3 million shares.
TREASURY SHARES
As of June 30, 2024, the Company and its subsidiaries owned 89.2 million AXA shares, representing 3.9% of the share capital, an increase of 45.2 million shares compared to December 31, 2023, mainly driven by the Share Buy Back programs announced and executed over the first half of the year for 53.9 million shares or €1,800 million.
The 0.7 million treasury shares backing contracts where the financial risk is borne by policyholders held in controlled investment funds were not deducted from shareholders' equity. Their total estimated historical cost was €18 million, and their market value was €23 million at the end of June 2024.
The carrying value of treasury shares was €3,005 million. No AXA shares were held directly by AXA subsidiaries or by consolidated mutual funds other than those backing contracts where financial risk is borne by policyholders.
UNDATED SUBORDINATED DEBT AND RELATED FINANCIAL EXPENSES
Undated subordinated debt instruments are classified in shareholders' equity at their historical value and their closing value as regards exchange rates. The corresponding exchange differences are cancelled out through the translation reserve.
During the first half of 2024, the following transactions pertaining to undated deeply subordinated debt had an impact on AXA's other reserves:
- €+1,500 million from a new issuance, partly offset by the partial reimbursement of two debts tranches through tender offers for €-1,166 million in total.
- €-106 million from interest expenses related to undated subordinated debts (net of tax).
- €+21 million from foreign exchange rate fluctuations.
- €-17 million from premium on repayment.
As of June 30, 2024 and December 31, 2023, undated subordinated debts recognized in shareholders' equity were as follows:
| June 30, 2024 | December 31, 2023 | ||||
|---|---|---|---|---|---|
| (in Euro million) | Value of the undated debt in currency of issuance |
Value of the undated debt in Euro million |
Value of the undated debt in currency of issuance |
Value of the undated debt in Euro million |
|
| October 29, 2004 - 375 M€ 6% | 375 | 375 | 375 | 375 | |
| December 22, 2004 - 250 M€ 6% | 250 | 250 | 250 | 250 | |
| January 25, 2005 - 250 M€ 6% | 250 | 250 | 250 | 250 | |
| July 6, 2006 - 350 M£ 6.6862% | 16 | 19 | 350 | 404 | |
| December 14, 2006 - 750 M US\$ 6,3790% | 461 | 428 | 461 | 415 | |
| November 7, 2014 – 984 M€ 3.941% | 984 | 981 | 984 | 981 | |
| November 7, 2014 – 724 M£ 5.453% | 62 | 73 | 724 | 833 | |
| January 16, 2024 – €1500m RT1 - 6,375% | 1,500 | 1,500 | 0 | 0 | |
| May 20, 2014 - 1.000 M€ - 3.875% until October 2025 | 1,000 | 997 | 1,000 | 997 | |
| Perpetual notes - variables rates in € | 625 | 625 | 625 | 625 | |
| Perpetual notes - 3.29% in JPY | 27,000 | 157 | 27,000 | 173 | |
| Perpetual notes - (of which 500 M US\$ at 7,1%) in US\$ | 150 | 140 | 150 | 136 | |
| TOTAL | 5,794 | 5,439 |
Undated deeply subordinated debt often contains the following features:
- include early redemption clauses (calls) at the Group's option, giving AXA the ability to redeem on certain dates the principal amount, and;
- often include interest rate step-up clauses with effect from a given date.
DIVIDENDS PAID
At the Shareholders' meeting held on April 23, 2024, shareholders approved a dividend distribution of €1.98 per share corresponding to €4,370 million with respect to the 2023 financial year.
6.1.2 Change in shareholders' equity Group share for the first half of 2023
SHARE CAPITAL AND CAPITAL IN EXCESS OF NOMINAL VALUE
During the first half of 2023, the following transactions had an impact on AXA's share capital and capital in excess of nominal value:
- capital decrease of €-1,402 million corresponding to 58.6 million shares mainly to cancel the shares bought in the context of the share buy back programs;
- capital increase of €18 million due to the exercise of stock options for 0.8 million shares;
- shared based payments for €22 million.
TREASURY SHARES
As of June 30, 2023, the Company and its subsidiaries owned 70.1 million AXA shares, representing 3.1% of the share capital, a decrease of 17.2 million shares compared to December 31, 2022.
The 0.6 million treasury shares backing contracts where the financial risk is borne by policyholders held in controlled investment funds were not deducted from shareholders' equity. Their total estimated historical cost was €15 million, and their market value was €18 million at the end of June 2023.
GIE_AXA_Internal
The carrying value of treasury shares was €2,093 million. No AXA shares were held directly by AXA subsidiaries or by consolidated mutual funds other than those backing contracts where financial risk is borne by policyholders.
UNDATED SUBORDINATED DEBT AND RELATED FINANCIAL EXPENSES
During the first half of 2023, the following transactions pertaining to undated subordinated debt had an impact on AXA's other reserves:
- €+5 million from foreign exchange rate fluctuations;
- €-92 million from interest expenses related to undated subordinated debts (net of tax).
DIVIDENDS PAID
At the Shareholders' meeting held on April 27, 2023, shareholders approved a dividend distribution of €1.70 per share corresponding to €3,787 million with respect to the 2022 financial year.
6.2COMPREHENSIVE INCOME FOR THE PERIOD
The Consolidated Statement of Comprehensive Income, presented as a Primary Financial Statement, includes the net income for the period and the other comprehensive income, the latter reflecting the changes relating to other reserves recognized through other comprehensive income ("OCI") in accordance with IFRS9 and IFRS17, translation reserves and employee benefits. It also reflects the realized capital gains or losses on equity instruments, without recycling in Profit or Loss.
6.2.1 Comprehensive income for the first half of 2024
OTHER RESERVES RECOGNIZED THROUGH OCI IN ACCORDANCE WITH IFRS9 AND IFRS17
The table below gives detailed information on changes in other reserves recognized through OCI during the first semester of 2024:
| (in Euro million) Balance at January 1, 2024 |
Fair value reserves relating to financial instruments PYR (7,128) |
Fair value reserves relating to cash flow hedge derivatives (4,350) |
Reserves relating to the cost of hedging 36 |
Reserves relating to finance income or expenses from insurance and reinsurance contracts 5,115 |
Total (6,327) |
|---|---|---|---|---|---|
| Change in OCI with recycling in Profit or Loss | (5,960) | 75 | (28) | 4,631 | (1,281) |
| Change in OCI without recycling in Profit or Loss | 436 | - | - | (306) | 130 |
| Others (including effect of changes in scope of consolidation) | 2 | (0) | 0 | (0) | 2 |
| Other comprehensive income | (5,521) | 75 | (28) | 4,325 | (1,148) |
| Balance at June 30, 2024 | (12,649) | (4,275) | 9 | 9,441 | (7,475) |
(a) Including the fair value hedge of equity instruments
REALIZED CAPITAL GAINS OR LOSSES ON EQUITY INSTRUMENTS
Under IFRS 9, realized capital gains or losses on Equity instruments accounted for at fair value through other comprehensive income are accounted directly in retained earnings, without affecting the net income of the period. For the first half of 2024, the Group share realized gain net of tax amounted to €+5 million.
GIE_AXA_Internal
CURRENCY TRANSLATION RESERVE
The total change in currency translation reserve for the first half year of 2024 amounted to €+302 million of which €+315 million from Group share and €-13 million from non-controlling interests. This was mainly driven by AXA XL (€+625 million), Hong Kong (€+121 million), United Kingdom (€+73m) partly offset by Switzerland (€-381 million) and Japan (€-254 million). Additionally, the translation reserves included the effect over the reporting period of applying IAS 29 standard related to hyperinflation in Türkiye for €-26 million, of which €-24 million Group share.
EMPLOYEE BENEFITS ACTUARIAL GAINS AND LOSSES
The total impact of employee benefits actuarial gains for the first half year of 2024 amounted to €+221 million (of which €+220 million from Group share and €+1 million from non-controlling interests). This was mainly driven by the investment gains of plan assets in Switzerland and an increase in the discount rates used to value liabilities in the Eurozone. The pension plan in Switzerland is overfunded; the asset ceiling test performed as of June 30, 2024, did not entail any limitation of the net defined benefit asset to be recognized.
6.2.2 Comprehensive income for the first half of 2023
OTHER RESERVES RECOGNIZED THROUGH OCI IN ACCORDANCE WITH IFRS 9 AND IFRS 17
The table below gives detailed information on changes in other reserves recognized through OCI during the first semester of 2023:
| (in Euro million) | Fair value reserves relating to financial instruments PYR |
Fair value reserves relating to cash flow hedge derivatives |
Reserves relating to the cost of hedging |
Reserves relating to finance income or expenses from insurance and reinsurance contracts |
Total |
|---|---|---|---|---|---|
| Balance at January 1, 2023 | (17,680) | (5,207) | 48 | 14,081 | (8,758) |
| Change in OCI with recycling in Profit or Loss | 4,486 | 147 | (46) | (3,653) | 933 |
| Change in OCI without recycling in Profit or Loss | 920 | - | - | (581) | 339 |
| Others (including effect of changes in scope of consolidation) | (1) | 0 | 0 | 1 | 0 |
| Other comprehensive income | 5,405 | 147 | (46) | (4,233) | 1,273 |
| Balance at June 30, 2023 | (12,275) | (5,060) | 1 | 9,849 | (7,485) |
(a) Including the fair value hedge of equity instruments.
REALIZED CAPITAL GAINS OR LOSSES ON EQUITY INSTRUMENTS
Under IFRS 9, realized capital gains or losses on Equity instruments accounted for at fair value through other comprehensive income are accounted directly in retained earnings, without affecting the net income of the period. For the first half of 2024, the Group share realized gain net of tax amounted to €+23 million.
CURRENCY TRANSLATION RESERVE
The total change in currency translation reserve for the first half year of 2023 amounted to €-781 million of which €-767 million from Group share and €-14 million from non-controlling interests. This was mainly driven by AXA XL (€-401 million), Japan (€-357 million) and China (€-131 million), partly offset by AXA SA (€+191 million) and Switzerland (€+122 million). Additionally, the translation reserves included the effect over the reporting period of applying IAS 29 standard related to hyperinflation in Türkiye for €+40 million, of which €+39 million Group share.
GIE_AXA_Internal
EMPLOYEE BENEFIT ACTUARIAL GAINS AND LOSSES
The total impact of employee benefit actuarial gains for the first half year of 2023 amounted to €+568 million (of which €+565 million from Group share and €+3 million from non-controlling interests). This was mainly driven by an increase in the net defined benefit asset of the Swiss pension plan. Measured at half year on AXA's share in the cost of the future employee benefits, the asset ceiling test performed as of June 30, 2023, did not entail any limitation of the net defined benefit asset to be recognized.
6.3CHANGE IN NON-CONTROLLING INTERESTS
Under IFRS, non-controlling interests in most investment funds in which the Group invests consist of instruments that holders can redeem at will at fair value and qualify as a liability rather than a shareholders' equity item.
6.3.1 Change in non-controlling interests for the first half of 2024
The €-77 million decrease in non-controlling interests to €+2,742 million was mainly driven by the comprehensive income and transactions with non-controlling interest holders:
- The comprehensive income for the period included the following:
- o Net income attributable to non-controlling interests for €+94 million;
- o Reserves relating to changes in fair value through shareholders' equity for €-42 million;
- o Foreign exchange movements for €-13 million;
- o Employee benefits actuarial gains and losses for €+1 million.
- Transactions with non-controlling interests' holders, mainly included:
- o Decrease in the value of non-controlling interests from investments funds mainly due to market performance and divestment in the funds for €-55 million;
- o Dividend payout to non-controlling interests' holders for €-83 million.
6.3.2 Change in non-controlling interests for the first half of 2023
The €-112 million decrease in non-controlling interests to €+2,906 million was mainly driven by the comprehensive income and transactions with non-controlling interest holders:
- The comprehensive income for the period included the following:
- o Net income attributable to non-controlling interests for €+104 million;
- o Reserves relating to changes in fair value through shareholders' equity for €+51 million;
- o Realized gains or losses on equity instruments, without recycling in profit or loss for €+8 million;
- o Foreign exchange movements for €-14 million;
- o Employee benefits actuarial gains and losses for €+3 million.
- Transactions with non-controlling interests' holders, mainly included:
- o Decrease in the value of non-controlling interests from investments funds mainly due to market performance and divestment in the funds for €-111 million;
- o Dividend payout to non-controlling interests' holders for €-150 million
GIE_AXA_Internal
NOTE 7 INSURANCE AND REINSURANCECONTRACTS
This note highlights the effects of contracts within the scope of IFRS 17 on the consolidated statement of financial position and the consolidated statement of profit or loss.
IFRS 17 – Insurance Contracts applies to insurance, reinsurance and investment contracts with discretionary participation features issued, and reinsurance contracts held. The acronyms used in this Note correspond to the following terms:
- DPF: Discretionary Participation Features
- LRC: Liability for Remaining Coverage
- LIC: Liability for Incurred Claims
- ARC: Asset for Remaining Coverage
- AIC: Asset for Incurred Claims
- CSM: Contractual Service Margin
- OCI: Other Comprehensive Income
- MRA: Modified Retrospective Approach
- FVA: Fair Value Approach
- PVFCF: Present Value of Future Cash Flows
- RA: Risk Adjustment for non-financial risk
- BBA: Building Block Approach
- VFA: Variable Fee Approach
- PAA: Premium Allocation Approach
7.1 RECONCILIATIONS WITH THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
The tables below enable to reconcile the consolidated statement of financial position and the consolidated statement of profit or loss with information disclosed in the following paragraphs.
These reconciliations consist in excluding the amounts of both insurance and reinsurance receivables and payables, as well as the assets for insurance acquisition cash flows, from the consolidated statement of financial position on one hand, the related amounts affecting the consolidated statement of profit or loss on the other hand.
7.1.1 Reconciliation with the consolidated statement of financial position
The reconciliation of amounts presented in the consolidated statement of financial position with the "carrying amount of insurance contracts and investment contracts with DPF", as disclosed in paragraph 7.2, is as follows:
| (in Euro million) | June 30, 2024 |
December 31, 2023, restated |
|---|---|---|
| Amounts reported in the consolidated statement of financial position | ||
| Liabilities arising from insurance contracts and investment contracts with DPF | 461,855 | 469,031 |
| Assets arising from insurance contracts and investment contracts with DPF | (6) | (11) |
| Net position | 461,849 | 469,021 |
| Receivables arising from direct insurance and inward reinsurance operations | 31,286 | 27,326 |
| Payables arising from direct insurance and inward reinsurance operations | (9,693) | (10,895) |
| Assets for insurance acquisition cash flows | 233 | 274 |
| Carrying amount of insurance contracts and investment contracts with DPF, as disclosed hereinafter | 483,675 | 485,726 |
The reconciliation of amounts presented in the consolidated statement of financial position with the "carrying amount of reinsurance contracts held", as disclosed in paragraph 7.3, is as follows:
| (in Euro million) | June 30, 2024 |
December 31, 2023, restated |
|---|---|---|
| Amounts reported in the consolidated statement of financial position | ||
| Assets arising from reinsurance contracts held | 25,541 | 25,211 |
| Liabilities arising from reinsurance contracts held | (8) | (8) |
| Net position | 25,533 | 25,204 |
| Payables arising from outward reinsurance operations | 25,882 | 14,437 |
| Receivables arising from outward reinsurance operations | (4,528) | (4,261) |
| Carrying amount of reinsurance contracts held, as disclosed hereinafter | 46,886 | 35,380 |
7.1.2 Reconciliation with the consolidated statement of profit or loss
The reconciliation of amounts presented in the consolidated statement of profit or loss with both the "Insurance service expenses" and the "Net finance income or expenses from insurance contracts issued recognised in profit or loss", as disclosed in paragraph 7.2, is as follows:
| (in Euro million) | June 30, 2024 |
June 30, 2023 |
|---|---|---|
| Insurance service expenses reported in the consolidated statement of profit or loss | (35,555) | (33,627) |
| Increase in impairment relating to receivables arising from direct insurance and inward reinsurance operations | 29 | 22 |
| Write back of impairment relating to receivables arising from direct insurance and inward reinsurance operations | (10) | (10) |
| Increase in impairment of assets for insurance acquisition cash flows | - | - |
| Write back of impairment of assets for insurance acquisition cash flows | - | |
| Insurance service expenses, as disclosed hereinafter | (35,536) | (33,615) |
| (in Euro million) | June 30, 2024 |
June 30, 2023 |
|---|---|---|
| Net finance income or expenses from insurance contracts issued, reported in the consolidated statement of profit or loss | (9,924) | (7,603) |
| Interest income on receivables arising from direct insurance and inward reinsurance operations | (25) | 4 |
| Interest expenses on payables arising from direct insurance and inward reinsurance operations | 26 | (21) |
| Foreign exchange unrealized gains or losses relating to receivables and payables arising from direct insurance and inward reinsurance operations |
33 | 88 |
| Foreign exchange realized gains or losses relating to receivables and payables arising from direct insurance and inward reinsurance operations |
20 | (1) |
| Net finance income or expenses from insurance contracts issued recognized in profit or loss, as disclosed hereinafter | (9,871) | (7,533) |
The reconciliation of amounts presented in the consolidated statement of profit or loss with both the "Net expenses from reinsurance contracts held" and the "Net finance income or expenses from reinsurance contracts held, recognised in profit or loss", as disclosed in paragraph 7.3, is as follows:
| (in Euro million) | June 30, 2024 |
June 30, 2023 |
|---|---|---|
| Net expenses from reinsurance contracts held, reported in the consolidated statement of profit or loss | (2,279) | (1,209) |
| Increase in impairment relating to receivables arising from outward reinsurance operations | - | 0 |
| Write back of impairment relating to receivables arising from outward reinsurance operations | (0) | (0) |
| Net expenses from reinsurance contracts held, as disclosed hereinafter | (2,279) | (1,209) |
| (in Euro million) | June 30, 2024 |
June 30, 2023 |
|---|---|---|
| Net finance income or expenses from reinsurance contracts held, reported in the consolidated statement of profit or loss | 726 | 155 |
| Interest income on receivables arising from outward reinsurance operations | (0) | (0) |
| Interest expenses on payables arising from outward reinsurance operations | 5 | 4 |
| Foreign exchange unrealized gains or losses relating to receivables and payables arising from outward reinsurance operations | (24) | (0) |
| Foreign exchange realized gains or losses relating to receivables and payables arising from outward reinsurance operations | 0 | - |
| Effect of changes in non-performance risk of reinsurers | 17 | (6) |
| Net finance income or expenses from reinsurance contracts held, recognized in profit or loss, as disclosed hereinafter | 723 | 153 |
7.2 MOVEMENTS IN BALANCES OF INSURANCE CONTRACTS AND INVESTMENT CONTRACTS WITH DPF
7.2.1 Changes in the carrying amount of insurance contracts and investment contracts with DPF, split between remaining coverage and incurred claims components
The two following tables provide an analysis of movements in the carrying amount of insurance contracts and investment contracts with DPF, split between the LRC and the LIC.
| is o uri fir lit b Ana lys f ch d d the f 20 24, LR C a nd LIC st s est etw ang es o ccu rre ng em er o sp een |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| LRC | LIC | ||||||||
| LIC rel d to ate PA A c ont ts rac |
|||||||||
| (in E llio n) mi uro |
ing Exc lud los s ent com pon |
Los s ent com pon |
al Tot LRC |
LIC rel d ate to n PAA on tra cts con |
ima of Est tes the PV FCF |
RA | al Tot |
al LIC Tot |
al Tot |
| nin Ope set g as s |
(14 ) |
- | (14 ) |
0 | - | - | - | 0 | (13 ) |
| nin liab iliti Ope g es |
366 ,32 1 |
1,87 9 |
368 ,200 |
2,6 73 |
113 ,179 |
1,68 7 |
114 ,866 |
117 ,539 |
485 ,739 |
| (A ) Net ba lan s of Ja ry 1 ce a nua |
366 ,30 8 |
1,8 79 |
368 ,18 7 |
2,6 73 |
113 ,17 9 |
1,6 87 |
114 ,86 6 |
117 ,53 9 |
485 ,72 6 |
| min from und he Insu ntra cts er t MRA ran ce r eve nue co g co |
(4,6 89) |
- | (4,6 89) |
- | - | - | - | - | (4,6 89) |
| min from und he Insu ntra cts er t FVA ran ce r eve nue co g co |
(2,5 68) |
- | (2,5 68) |
- | - | - | - | - | (2,5 68) |
| from oth Insu min ont ts ran ce r eve nue co g er c rac |
(35 ) ,030 |
- | (35 ) ,030 |
- | - | - | - | - | (35 ) ,030 |
| e (B ) Ins ura nce rev enu |
(42 8) ,28 |
- | (42 8) ,28 |
- | - | - | - | - | (42 8) ,28 |
| rred cla d o the Incu ims r in rvic an sur anc e se e ex pen ses |
- | (36 ) |
(36 ) |
5,83 0 |
24,5 97 |
192 | 24, 788 |
30, 618 |
30,5 82 |
| isat ion of insu isit ion h fl Am ort ran ce a cqu cas ows |
6,02 0 |
- | 6,02 0 |
- | - | - | - | - | 6,02 0 |
| d re sal of l Los ntra cts ses an ver oss es o n o ner ous co |
- | 53 | 53 | - | - | - | - | - | 53 |
| es f Adj to l iab iliti or i rred cla ims ust nts me ncu |
- | - | - | (25 3) |
(63 4) |
(23 1) |
(86 5) |
(1,1 18) |
(1,1 18) |
| rvic (C ) Ins ura nce se e ex pen ses |
6,0 20 |
16 | 6,0 36 |
5,5 77 |
23, 963 |
(39 ) |
23, 924 |
29, 500 |
35, 536 |
| s (D ) Inv est nt c ent me om pon |
(13 0) ,98 |
- | (13 0) ,98 |
13, 431 |
549 | - | 549 | 13, 980 |
- |
| rvic sul t (E ) Ins =B+ C+D ura nce se e re |
(50 8) ,24 |
16 | (50 2) ,23 |
19, 008 |
24, 511 |
(39 ) |
24, 472 |
43, 480 |
(6,7 51) |
| fin ized fit o r lo Net e in in anc com e o r ex pen ses rec ogn pro ss |
8,58 7 |
23 | 8,6 11 |
1 | 1,25 7 |
2 | 1,25 9 |
1,26 0 |
9,8 71 |
| Net fin e in ized in OC I anc com e o r ex pen ses rec ogn |
(5,4 26) |
- | (5,4 26) |
(7 ) |
(88 4) |
(0 ) |
(88 5) |
(89 2) |
(6,3 18) |
| fin e in fro m i ts i (F ) Net ed ont anc com e o r ex pen ses nsu ran ce c rac ssu |
3,1 61 |
23 | 3,1 84 |
(6 ) |
373 | 2 | 374 | 368 | 3,5 53 |
| al c han in the of fit o r lo nd in O CI ( +F) Tot sta tem ent G=E ges pro ss a |
(47 7) ,08 |
40 | (47 7) ,04 |
19, 002 |
24, 884 |
(38 ) |
24, 847 |
43, 849 |
(3,1 99) |
| miu eive d Pre ms rec |
57,5 61 |
- | 57, 561 |
- | - | - | - | - | 57,5 61 |
| Cla ims d o the r in rvic id an sur anc e se e ex pen ses pa |
- | - | - | (19 ) ,022 |
(25 ) ,880 |
- | (25 ) ,880 |
(44 ) ,902 |
(44 ) ,902 |
| isit ion h fl id Insu ran ce a cqu cas ows pa |
(7,4 83) |
- | (7,4 83) |
- | - | - | - | - | (7,4 83) |
| flo (H ) Tot al c ash ws |
50, 078 |
- | 50, 078 |
(19 2) ,02 |
(25 0) ,88 |
- | (25 0) ,88 |
(44 2) ,90 |
76 5,1 |
| Effe f m in han es ( I) ct o nts rat ove me exc ge |
(3,7 13) |
(14 8) |
(3,8 61) |
(23 ) |
(11 3) |
14 | (99 ) |
(12 1) |
(3,9 82) |
| Effe f ch es i of ida tio (J ) sol nd oth han ct o ang n sc ope con n a er c ges |
598 | 0 | 598 | (9 ) |
(63 4) |
0 | (63 4) |
(64 3) |
(45 ) |
| Clo sing ets ass |
(10 ) |
- | (10 ) |
1 | - | - | - | 1 | (9 ) |
| Clo sing lia bili ties |
366 ,192 |
1,77 1 |
367 ,963 |
2,62 0 |
111 ,436 |
1,66 4 |
113 ,10 1 |
115 ,72 1 |
483 ,684 |
| s of (K= ) Net ba lan Ju 30 A+G +H+ I+J ce a ne |
366 ,18 3 |
1,7 71 |
367 ,95 4 |
2,6 21 |
,43 6 111 |
1,6 64 |
113 ,10 0 |
,72 115 1 |
483 ,67 5 |
| I | I | ||
|---|---|---|---|
| is o f ch uri lit b Ana lys d d the ar 2 023 ted LR C a nd LIC sta etw ang es o ccu rre ng ye , re , sp een |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| LRC | LIC | |||||||||
| rel d to LIC ate PA A c ont ts rac |
||||||||||
| (in E mi llio n) uro |
lud ing Exc los s ent com pon |
Los s ent com pon |
al Tot LRC |
rel d LIC ate PAA to n on tra cts con |
ima Est tes of the PV FCF |
RA | Tot al |
al LIC Tot |
Tot al |
|
| Ope nin set g as s |
(4 ) |
- | (4 ) |
0 | - | - | - | 0 | (4 ) |
|
| liab iliti Ope nin g es |
358 ,647 |
2,44 1 |
361 ,087 |
2,63 1 |
108 ,876 |
1,77 6 |
110 ,652 |
113 ,283 |
474 ,37 1 |
|
| (A ) ba lan s of Net Ja ry 1 ce a nua |
358 ,64 3 |
2,4 41 |
361 ,08 4 |
2,6 31 |
108 ,87 6 |
1,7 76 |
110 ,65 2 |
113 ,28 3 |
474 ,36 7 |
|
| min from und he Insu ntra cts er t MRA ran ce r eve nue co g co |
(11 ) ,820 |
- | (11 ) ,820 |
- | - | - | - | - | (11 ) ,820 |
|
| from Insu min und he FVA ntra cts er t ran ce r eve nue co g co |
(1,8 44) |
- | (1,8 44) |
- | - | - | - | - | (1,8 44) |
|
| min from oth Insu ont ts ran ce r eve nue co g er c rac |
(67 ) ,225 |
- | (67 ) ,225 |
- | - | - | - | - | (67 ) ,225 |
|
| e (B ) Ins ura nce rev enu |
(80 9) ,88 |
- | (80 9) ,88 |
- | - | - | - | - | (80 9) ,88 |
|
| rred cla ims d o the r in rvic Incu an sur anc e se e ex pen ses |
- | (20 2) |
(20 2) |
11,2 37 |
49, 583 |
336 | 49, 920 |
61, 156 |
60,9 54 |
|
| of h fl Am isat ion insu isit ion ort ran ce a cqu cas ows |
11,5 05 |
- | 11,5 05 |
- | - | - | - | - | 11,5 05 |
|
| d re sal of l Los ntra cts ses an ver oss es o n o ner ous co |
- | 28 | 28 | - | - | - | - | - | 28 | |
| Adj to l iab iliti es f or i rred cla ims ust nts me ncu |
- | - | - | (10 8) |
(31 2) |
(40 3) |
(71 5) |
(82 3) |
(82 3) |
|
| (C ) rvic Ins ura nce se e ex pen ses |
11, 505 |
(17 4) |
11, 332 |
11, 129 |
49, 271 |
(67 ) |
49, 204 |
60, 333 |
71, 665 |
|
| s (D ) Inv est nt c ent me om pon |
(28 5) ,41 |
- | (28 5) ,41 |
27, 516 |
899 | - | 899 | 28, 415 |
- | |
| rvic sul t (E ) Ins =B+ C+D ura nce se e re |
(97 9) ,79 |
(17 4) |
(97 2) ,97 |
38, 645 |
50, 170 |
(67 ) |
50, 103 |
88, 748 |
(9,2 25) |
|
| fin fit o Net e in ized in r lo anc com e o r ex pen ses rec ogn pro ss |
13,2 72 |
56 | 13,3 28 |
(1 ) |
1,08 0 |
2 | 1,08 1 |
1,08 0 |
09 14,4 |
|
| fin e in ized in Net OC I anc com e o r ex pen ses rec ogn |
8,8 64 |
- | 8,8 64 |
18 | 4,1 66 |
6 | 4,1 73 |
4,1 90 |
13,0 54 |
|
| fin e in fro m i ts i (F ) Net ed ont anc com e o r ex pen ses nsu ran ce c rac ssu |
22, 136 |
56 | 22, 192 |
17 | 5,2 46 |
8 | 5,2 54 |
5,2 71 |
27, 463 |
|
| CI ( +F) al c han in the of fit o r lo nd in O G=E Tot sta tem ent ges pro ss a |
(75 2) ,66 |
(11 8) |
(75 1) ,78 |
38, 662 |
55, 416 |
(59 ) |
55, 357 |
94, 019 |
18, 238 |
|
| miu eive d Pre ms rec |
99, 113 |
- | 99, 113 |
- | - | - | - | - | 99, 113 |
|
| Cla ims d o the r in rvic id an sur anc e se e ex pen ses pa |
- | - | - | (38 ) ,572 |
(51 ) ,404 |
- | (51 ) ,404 |
(89 ) ,976 |
(89 ) ,976 |
|
| isit ion h fl id Insu ran ce a cqu cas ows pa |
(13 ) ,559 |
- | (13 ) ,559 |
- | - | - | - | - | (13 ) ,559 |
|
| flo (H ) Tot al c ash ws |
85, 554 |
- | 85, 554 |
(38 2) ,57 |
(51 4) ,40 |
- | (51 4) ,40 |
(89 6) ,97 |
(4,4 22) |
|
| in es ( I) Effe f m han ct o nts rat ove me exc ge |
(2,8 28) |
(17 4) |
(3,0 01) |
(66 ) |
42 | (34 ) |
8 | (57 ) |
(3,0 58) |
|
| Effe f ch es i of sol ida tio nd oth han (J ) ct o ang n sc ope con n a er c ges |
601 | (27 0) |
332 | 19 | 249 | 5 | 254 | 272 | 604 | |
| Clo sing ets ass |
(14 ) |
- | (14 ) |
0 | - | - | - | 0 | (13 ) |
|
| Clo sing lia bili ties |
366 ,32 1 |
1,87 9 |
368 ,200 |
2,6 73 |
113 ,179 |
1,68 7 |
114 ,866 |
117 ,539 |
485 ,739 |
|
| ba lan s of ber (K= ) Net De 31 A+G +H+ I+J ce a cem |
366 ,30 8 |
1,8 79 |
368 ,18 7 |
2,6 73 |
113 ,17 9 |
1,6 87 |
114 ,86 6 |
117 ,53 9 |
485 ,72 6 |
7.2.2 Changes in the carrying amount of insurance contracts and investment contracts with DPF, broken down by measurement component
The two following tables provide an analysis of movements in the carrying amount of insurance contracts and investment contracts with DPF not measured under PAA, broken down by measurement component, namely (i) the estimate of the PVFCF, (ii) the RA, and (iii) the CSM. However, the carrying amount of insurance contracts measured under the PAA is also reported to reconcile with the opening and closing balances of financial statements.
In this respect, the total amount of RA gross of reinsurance (including contracts measured under the PAA) was €3,085 million at end June 2024 and €3,125 million at end December 2023, restated. The percentile was stable at 65th comprised within the 62.5th-67.5th percentile range considered by the Group as the adequate level of prudence on underlying insurance liabilities.
| I | I | |
|---|---|---|
| lysi s of cha red du the firs r of bro ken do by nt ( onl y fo Ana ring 20 24, n P AA t se ste ent trac nge s oc cur me wn me asu rem co mp one r no con |
ts) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| CSM | |||||||||
| (in illio n) Eur o m |
Esti of the tes ma PVF CF |
RA | Con trac ts red at me asu nsit ion der tra un the MR A |
Con trac ts red at me asu nsit ion der tra un the FV A |
Oth ont ract er c s |
al CSM Tot |
Car ryin g am t of n PAA oun no ntra cts co |
Car ryin g am A con t of PA oun trac ts |
Tot al |
| Ope nin sets g as |
(73 ) |
1 | - | - | 59 | 59 | (13 ) |
- | (13 ) |
| Ope nin g lia bilit ies |
312 ,51 8 |
1,43 8 |
6,8 20 |
2,48 7 |
25, 560 |
34, 868 |
348 ,82 4 |
136 ,91 5 |
485 ,73 9 |
| ba lan s of (A) Net Jan y 1 ce a uar |
312 ,44 4 |
1,4 39 |
6,8 20 |
2,4 87 |
25, 620 |
34, 927 |
348 ,81 0 |
136 ,91 5 |
485 ,72 6 |
| ized fit o r lo ss f vide d CSM in ices rec ogn pro or s erv pro |
- | - | (59 7) |
(12 8) |
(79 6) |
(1,5 21) |
(1,5 21) |
- | (1,5 21) |
| Rele of RA ase |
- | (40 ) |
- | - | - | - | (40 ) |
- | (40 ) |
| adj Exp erie ust nts nce me |
52 | 2 | - | - | - | - | 54 | - | 54 |
| Cha s th elat rvic es ( B) at r e to t se nge cu rren |
52 | (38 ) |
(59 7) |
(12 8) |
(79 6) |
(1,5 21) |
(1,5 08) |
- | (1,5 08) |
| ts i niti ally ized in t he iod Con trac rec ogn per |
(1,2 04) |
47 | 135 | 0 | 1,02 7 |
1,16 2 |
5 | - | 5 |
| Cha tha t ad the s in ima just CS M est tes nge Cha s in ima tha sult in loss nd l of loss est tes t re nge es a rev ersa es o n o ner ous |
(1,9 27) |
3 | (18 0) |
199 | 1,90 5 |
1,9 24 |
0 | - | 0 |
| trac ts con |
34 | (2) | - | - | - | - | 32 | - | 32 |
| fut s (C ) Cha s th elat vice at r e to nge ure ser |
(3,0 97) |
48 | (46 ) |
199 | 2,9 32 |
3,0 86 |
37 | - | 37 |
| s fo Adj to l iabi litie r in red cla ims ust nts me cur |
(25 2) |
(1) | - | - | - | - | (25 3) |
- | (25 3) |
| (D) Cha s th elat ices at r e to st s nge pa erv |
(25 2) |
(1) | - | - | - | - | (25 3) |
- | (25 3) |
| ice ult (E= B+C +D) Insu ran ce s erv res |
(3,2 97) |
9 | (64 3) |
72 | 2,1 36 |
65 1,5 |
(1,7 23) |
- | (1,7 23) |
| Net fin e in ized in fit o r lo anc com e o r ex pen ses rec ogn pro ss |
8,5 13 |
0 | 68 | 14 | 20 | 102 | 8,6 16 |
- | 8,6 16 |
| Net fin e in ized in OCI anc com e o r ex pen ses rec ogn |
(5,4 38) |
0 | - | - | - | - | (5,4 38) |
- | (5,4 38) |
| Net fin e in fro m i s is d (F ) ont ract anc com e o r ex pen ses nsu ran ce c sue |
3,0 76 |
1 | 68 | 14 | 20 | 102 | 3,1 79 |
- | 3,1 79 |
| al c han in the of fit o r lo nd in O CI ( G=E +F) Tot sta tem ent ges pro ss a |
(22 2) |
10 | (57 4) |
86 | 2,1 56 |
1,6 67 |
1,4 55 |
(4,6 54) |
(3,1 99) |
| d Pre miu eive ms rec |
16,7 56 |
- | - | - | - | - | 16,7 56 |
40, 805 |
57, 561 |
| Cla d o the id ims r in rvic an sur anc e se e ex pen ses pa |
(19 2) ,02 |
- | - | - | - | - | (19 2) ,02 |
(25 0) ,88 |
(44 2) ,90 |
| isiti h fl id Insu ran ce a cqu on cas ow s pa |
(1,6 71) |
- | - | - | - | - | (1,6 71) |
(5,8 12) |
(7,4 83) |
| al c ash flo (H) Tot ws |
(3,9 37) |
- | - | - | - | - | (3,9 37) |
9,1 13 |
76 5,1 |
| Effe f m in e xch (I) ct o nts tes ove me ang e ra |
(3,1 06) |
(28 ) |
(33 2) |
(22 ) |
(37 4) |
(72 8) |
(3,8 62) |
(12 0) |
(3,9 82) |
| Effe f ch es i of soli dat ion d o the r ch es ( J) ct o ang n sc ope con an ang |
523 | - | - | - | - | - | 522 | (56 6) |
(46 ) |
| Clo sing ets ass |
(81 ) |
1 | - | - | 71 | 71 | (9) | - | (9) |
| Clo sing lia bilit ies |
305 ,78 2 |
1,42 0 |
5,9 14 |
2,5 50 |
27, 331 |
35, 795 |
342 ,99 7 |
140 ,68 7 |
483 ,68 4 |
| ba lan s of e 3 0 (K G+H J) Net Jun =A+ +I+ ce a |
305 ,70 2 |
21 1,4 |
5,9 14 |
2,5 50 |
27, 402 |
35, 866 |
342 ,98 8 |
140 ,68 7 |
483 ,67 5 |
| I | I | ||
|---|---|---|---|
| lysi s of cha red du ring the r 20 23, d, b rok dow n by nt ( onl Ana rest ate ent nge s oc cur yea en me asu rem co mp one |
ts) n P AA trac r no con |
||||||||
|---|---|---|---|---|---|---|---|---|---|
| CSM | |||||||||
| (in illio n) Eur o m |
Esti of the tes ma PVF CF |
RA | Con trac ts red at me asu nsit ion der tra un the A MR |
Con trac ts red at me asu nsit ion der tra un the FV A |
Oth ont ract er c s |
al CSM Tot |
Car ryin g am t of n PAA oun no ntra cts co |
Car ryin g am t of A con PA oun trac ts |
al Tot |
| Ope nin sets g as |
(19 ) |
- | - | - | 15 | 15 | (4) | - | (4) |
| g lia bilit Ope nin ies |
306 ,70 5 |
1,35 0 |
7,6 13 |
2,6 10 |
24, 105 |
34, 328 |
342 ,38 4 |
131 ,98 7 |
474 ,37 1 |
| ba lan s of (A) Net Jan y 1 ce a uar |
306 ,68 6 |
1,3 50 |
7,6 13 |
2,6 10 |
24, 120 |
34, 343 |
342 ,38 0 |
131 ,98 7 |
474 ,36 7 |
| fit o ss f CSM ized in r lo ices vide d rec ogn pro or s erv pro |
- | - | (55 0) |
(24 0) |
(2,2 03) |
(2,9 92) |
(2,9 92) |
- | (2,9 92) |
| Rele of RA ase |
- | (74 ) |
- | - | - | - | (74 ) |
- | (74 ) |
| adj Exp erie ust nts nce me |
(29 5) |
2 | - | - | - | - | (29 3) |
- | (29 3) |
| Cha s th elat es ( B) rvic at r e to t se nge cu rren |
(29 5) |
(72 ) |
(55 0) |
(24 0) |
(2,2 03) |
(2,9 92) |
(3,3 60) |
- | (3,3 60) |
| ally ized he iod Con ts i niti in t trac rec ogn per |
(2,3 57) |
88 | 57 | - | 2,2 33 |
2,2 89 |
20 | - | 20 |
| Cha tha t ad the s in ima just CS M est tes nge |
(1,8 86) |
97 | 66 | 180 | 1,54 3 |
1,78 9 |
(0) | - | (0) |
| Cha tha sult loss nd l of loss s in ima in est tes t re nge es a rev ersa es o n o ner ous |
|||||||||
| trac ts con |
26 | 5 | - | - | - | - | 31 | - | 31 |
| s (C ) Cha s th elat fut vice at r e to nge ure ser |
(4,2 17) |
190 | 123 | 180 | 3,7 76 |
4,0 78 |
52 | - | 52 |
| Adj to l iabi litie s fo r in red cla ims ust nts me cur |
(10 6) |
(2) | - | - | - | - | (10 8) |
- | (10 8) |
| Cha s th elat ices (D) at r e to st s nge pa erv |
(10 6) |
(2) | - | - | - | - | (10 8) |
- | (10 8) |
| (E= +D) Insu ice ult B+C ran ce s erv res |
(4,6 18) |
117 | (42 7) |
(60 ) |
1,5 73 |
1,08 6 |
(3,4 16) |
- | (3,4 16) |
| fin e in ized in fit o r lo Net anc com e o r ex pen ses rec ogn pro ss |
13, 145 |
0 | 98 | 18 | 64 | 180 | 13,3 26 |
- | 13,3 26 |
| Net fin e in ized in OCI anc com e o r ex pen ses rec ogn |
8,9 51 |
1 | - | - | - | - | 8,9 52 |
- | 8,9 52 |
| fin e in fro m i s is d (F ) Net ont ract anc com e o r ex pen ses nsu ran ce c sue |
22, 096 |
1 | 98 | 18 | 64 | 180 | 22, 277 |
- | 22, 277 |
| Tot al c han in the of fit o r lo nd in O CI ( G=E +F) sta tem ent ges pro ss a |
17,4 78 |
118 | (32 9) |
(42 ) |
1,6 37 |
1,2 66 |
18,8 61 |
(62 3) |
18, 238 |
| d Pre miu eive ms rec |
31, 672 |
- | - | - | - | - | 31, 672 |
67,4 41 |
99, 113 |
| Cla ims d o the r in rvic id an sur anc e se e ex pen ses pa |
(38 2) ,57 |
- | - | - | - | - | (38 2) ,57 |
(51 ,40 4) |
(89 ,97 6) |
| isiti h fl id Insu ran ce a cqu on cas ow s pa |
(3,5 35) |
- | - | - | - | - | (3,5 35) |
(10 ,02 5) |
(13 9) ,55 |
| al c ash flo (H) Tot ws |
(10 ,43 5) |
- | - | - | - | - | (10 ,43 5) |
6,0 13 |
(4,4 22) |
| Effe f m in e xch (I) ct o nts tes ove me ang e ra |
(1,7 26) |
(32 ) |
(46 4) |
(93 ) |
(16 5) |
(72 3) |
(2,4 81) |
(57 8) |
(3,0 58) |
| Effe f ch es i of soli dat ion d o the r ch es ( J) ct o ang n sc ope con an ang |
441 | 3 | - | 12 | 28 | 41 | 485 | 119 | 604 |
| Clo sing ets ass |
(73 ) |
1 | - | - | 59 | 59 | (13 ) |
- | (13 ) |
| Clo sing lia bilit ies |
312 ,51 8 |
1,43 8 |
6,8 20 |
2,48 7 |
25, 560 |
34, 868 |
348 ,82 4 |
136 ,91 5 |
485 ,73 9 |
| (K= I+J) Net ba lan s of De ber 31 A+G +H+ ce a cem |
312 ,44 4 |
1,4 39 |
6,8 20 |
2,4 87 |
25, 620 |
34, 927 |
348 ,81 0 |
136 ,91 5 |
485 ,72 6 |
7.3 MOVEMENTS IN BALANCES OF REINSURANCE CONTRACTS HELD
7.3.1 Changes in the carrying amount of reinsurance contracts held, split between remaining coverage and incurred claims components
The two following tables provide an analysis of movements in the carrying amount of reinsurance contracts held split between the ARC and the AIC.
| lysi s of cha the firs r of spli t be Ana red du ring 20 24, ARC d A IC t se ste twe nge s oc cur me en an |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ARC | ||||||||||
| rel d to AIC ate PA A c ont ts rac |
||||||||||
| (in E llio n) mi uro |
lud ing Exc los s rec ove ry ent com pon |
Los s rec ove ry ent com pon |
Tot al ARC |
rel d AIC ate PAA to n on tra cts con |
ima of Est tes the FCF PV |
RA | Tot al |
Tot al AIC |
Tot al |
|
| nin Ope set g as s |
12,5 60 |
(42 ) |
12,5 18 |
114 | 22, 395 |
361 | 22, 756 |
22, 869 |
35,3 87 |
|
| liab iliti Ope nin g es |
(7 ) |
- | (7 ) |
- | - | - | - | - | (7 ) |
|
| (A ) ba lan s of Net Ja ry 1 ce a nua |
12, 553 |
(42 ) |
12, 511 |
114 | 22, 395 |
361 | 22, 756 |
22, 869 |
35, 380 |
|
| es f Exp rei ont ts ens rom nsu ran ce c rac |
(5,7 09) |
- | (5,7 09) |
- | - | - | - | - | (5,7 09) |
|
| Cha s in ima tha late loss nd al o f lo der ly ing est tes t re to nge es a rev ers sse s on un |
||||||||||
| ntra cts one rou s co |
- | 34 | 34 | - | - | - | - | - | 34 | |
| TUV ed f Am the rei ts r oun eco ver rom nsu rers |
- | (2 ) |
(2 ) |
339 | 3,0 65 |
(22 ) |
3,04 3 |
3,3 82 |
3,3 80 |
|
| fro ein ld ( B) Net s he ntr act ex pen ses m r sur anc e co |
(5,7 09) |
32 | (5,6 78) |
339 | 3,0 65 |
(22 ) |
3,0 43 |
3,3 82 |
(2,2 96) |
|
| (C ) Inv est nt c ent me om pon |
(82 1) |
- | (82 1) |
821 | - | - | - | 821 | - | |
| fin e in ized in fit o r lo Net anc com e o r ex pen ses rec ogn pro ss fin ized Net e in in OC I |
346 (24 6) |
0 | 346 (24 6) |
1 0 |
358 (14 5) |
1 0 |
359 (14 5) |
360 (14 4) |
706 (39 1) |
|
| anc com e o r ex pen ses rec ogn fin e in fro ein s h eld (D ) Net ntr act anc com e o r ex pen ses m r sur anc e co |
100 | - 0 |
100 | 1 | 214 | 1 | 215 | 215 | 316 | |
| (E ) Effe f ch es i n th e ri sk o f no erf e b he rein ct o y t ang n-p orm anc sur ers |
(4 ) |
- | (4 ) |
(0 ) |
20 | - | 20 | 20 | 17 | |
| al c han in the of fit o r lo nd in O CI ( ) Tot F=B +C+ D+E sta tem ent ges pro ss a |
(6,4 34) |
32 | (6,4 02) |
1,1 61 |
3,2 99 |
(21 ) |
3,2 78 |
4,4 38 |
(1,9 63) |
|
| miu id ( of mis sio ela ted miu ms) Pre net to ms pa com ns r pre |
18,3 82 |
- | 18,3 82 |
- | - | - | - | - | 18,3 82 |
|
| (ne t of ) Am ived issi rel d to cla ims ts r ate oun ece co mm ons |
- | - | - | (1,1 52) |
(4,3 10) |
- | (4,3 10) |
(5,4 62) |
(5,4 62) |
|
| al c ash flo (G ) Tot ws |
18, 382 |
- | 18, 382 |
(1,1 52) |
(4,3 10) |
- | (4,3 10) |
(5,4 62) |
12, 921 |
|
| Effe f m in han es ( H) ct o nts rat ove me exc ge |
207 | (1 ) |
206 | (0 ) |
364 | 5 | 370 | 369 | 575 | |
| es i ida tio (I ) Effe f ch of sol nd oth han ct o ang n sc ope con n a er c ges |
65 | 0 | 65 | (63 ) |
(30 ) |
1 | (29 ) |
(92 ) |
(27 ) |
|
| Clo sing ets ass |
24, 781 |
(11 ) |
24, 770 |
60 | 21, 718 |
346 | 22, 064 |
22, 124 |
46, 894 |
|
| Clo sing lia bili ties |
(8 ) |
- | (8 ) |
- | - | - | - | 0 | (8 ) |
|
| s of (J= ) Net ba lan Ju 30 A+F +G+ H+I ce a ne |
24, 774 |
(11 ) |
24, 763 |
60 | 21, 718 |
346 | 22, 064 |
22, 123 |
46, 886 |
(a) Excl. effect of changes in the risk of non-performance by the reinsurers
| lysi s of cha red du the r 20 be ARC d A IC Ana rest ate twe s oc cur |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| nge | ring 23, d, s plit yea en an |
|||||||||
| ARC | ||||||||||
| AIC rel |
d to PA A c ate ont |
|||||||||
| (in E llio n) mi uro |
lud ing Exc los s rec ove ry ent com pon |
Los s rec ove ry ent com pon |
Tot al ARC |
AIC rel d ate to n PAA on tra cts con |
ima of Est tes the PV FCF |
RA | al Tot |
Tot al AIC |
al Tot |
|
| nin Ope set g as s |
10,9 70 |
240 | 11,2 10 |
79 | 21, 624 |
378 | 22, 002 |
22, 081 |
33, 291 |
|
| Ope nin liab iliti g es |
(5 ) |
- | (5 ) |
- | - | - | - | - | (5 ) |
|
| ba lan s of (A ) Net Ja ry 1 ce a nua |
10, 965 |
240 | 11, 205 |
79 | 21, 624 |
378 | 22, 002 |
22, 081 |
33, 285 |
|
| es f Exp rei ont ts ens rom nsu ran ce c rac |
(11 ) ,557 |
- | (11 ) ,557 |
- | - | - | - | - | (11 ) ,557 |
|
| f lo Cha s in ima tha late loss nd al o der ly ing est tes t re to nge es a rev ers sse s on un |
||||||||||
| ntra cts one rou s co |
- | (5 ) |
(5 ) |
- | - | - | - | - | (5 ) |
|
| TUV ed f the Am rei ts r oun eco ver rom nsu rers |
- | (6 ) |
(6 ) |
608 | 8,68 5 |
0 | 8,68 5 |
9,29 3 |
9,28 7 |
|
| fro ein s he ld ( B) Net ntr act ex pen ses m r sur anc e co |
(11 7) ,55 |
(10 ) |
(11 7) ,56 |
608 | 8,6 85 |
0 | 8,6 85 |
9,2 93 |
(2,2 74) |
|
| (C ) Inv est nt c ent me om pon |
(43 3) |
- | (43 3) |
433 | - | - | - | 433 | - | |
| fin e in ized in fit o r lo Net anc com e o r ex pen ses rec ogn pro ss |
71 | 0 | 72 | (0 ) |
233 | 3 | 236 | 236 | 308 | |
| fin e in ized in Net OC I anc com e o r ex pen ses rec ogn |
385 | - | 385 | 0 | 682 | 0 | 682 | 682 | 1,0 67 |
|
| (D ) fin e in fro ein s h eld Net ntr act anc com e o r ex pen ses m r sur anc e co |
456 | 0 | 456 | 0 | 915 | 3 | 918 | 918 | 1,3 75 |
|
| Effe f ch es i n th e ri sk o f no erf e b he rein (E ) ct o y t ang n-p orm anc sur ers |
0 | - | 0 | - | (4 ) |
- | (4 ) |
(4 ) |
(3 ) |
|
| al c han in the of fit o r lo nd in O CI ( ) Tot sta tem ent F=B +C+ D+E ges pro ss a |
(11 3) ,53 |
(10 ) |
(11 4) ,54 |
1,0 41 |
9,5 97 |
3 | 9,6 00 |
10, 641 |
(90 3) |
|
| id ( of ms) Pre miu mis sio ela ted miu net to ms pa com ns r pre |
13,3 88 |
- | 13,3 88 |
- | - | - | - | - | 13,3 88 |
|
| ived (ne t of issi rel d to cla ims ) Am ts r ate oun ece co mm ons |
- | - | - | (1,0 51) |
(8,3 14) |
- | (8,3 14) |
(9,3 65) |
(9,3 65) |
|
| flo (G ) Tot al c ash ws |
13, 388 |
- | 13, 388 |
(1,0 51) |
(8,3 14) |
- | (8,3 14) |
(9,3 65) |
4,0 23 |
|
| Effe f m in han es ( H) ct o nts rat ove me exc ge |
(23 2) |
4 | (22 8) |
(18 ) |
(53 7) |
(21 ) |
(55 8) |
(57 6) |
(80 4) |
|
| Effe f ch es i of sol ida tio nd oth han (I ) ct o ang n sc ope con n a er c ges |
(34 ) |
(27 7) |
(31 1) |
62 | 25 | 1 | 26 | 89 | (22 2) |
|
| Clo sing ets ass |
12,5 60 |
(42 ) |
12,5 18 |
114 | 22, 395 |
361 | 22, 756 |
22, 869 |
35,3 87 |
|
| Clo lia bili sing ties |
(7 ) |
- | (7 ) |
- | - | - | - | - | (7 ) |
|
| s of (J= ) Net ba lan De ber 31 A+F +G+ H+I ce a cem |
12, 553 |
(42 ) |
12, 511 |
114 | 22, 395 |
361 | 22, 756 |
22, 869 |
35, 380 |
(a) Excl. effect of changes in the risk of non-performance by the reinsurers
7.3.2 Changes in the carrying amount of reinsurance contracts held, broken down by measurement component
The two following tables provide an analysis of movements in the carrying amount of reinsurance contracts held, broken down by measurement component, namely (i) the estimate of PVFCF, (ii) the RA, and (iii) the CSM. However, the carrying amount of reinsurance contracts held measured under the PAA is also reported to reconcile with the opening and closing balances of financial statements
| Ana lysi s of cha red du ring the firs r of 20 24, bro ken do by nt ( onl y fo n P AA ts) t se ste ent trac nge s oc cur me wn me asu rem co mp one r no con |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| CSM | |||||||||
| (in illio n) Eur o m |
Esti of tes ma the PV FCF |
RA | Con trac ts red at me asu der nsit ion tra un the MR A |
Con trac ts red at me asu der nsit ion tra un the FV A |
Oth er trac ts con |
Tot al CSM |
ryin Car g t am oun of n PAA on trac ts con |
ryin Car g t am oun of P AA trac ts con |
TOT AL |
| nin Ope sets g as |
8,4 60 |
128 | 240 | 364 | 130 | 734 | 9,3 22 |
26,0 65 |
35, 387 |
| nin g lia bilit ies Ope |
(13 ) |
0 | 2 | 3 | (0) | 5 | (7) | - | (7) |
| ba lan s of (A) Net Jan y 1 ce a uar |
8,4 47 |
128 | 242 | 368 | 130 | 740 | 9,3 15 |
26,0 65 |
35, 380 |
| CSM ized for vice ceiv ed rec ogn ser s re |
- | - | (9) | (28 ) |
(65 ) |
(10 2) |
(10 2) |
- | (10 2) |
| Rele of RA ase |
- | (4) | - | - | - | - | (4) | - | (4) |
| erie adj Exp ust nts nce me |
(53 ) |
1 | - | - | - | - | (52 ) |
- | (52 ) |
| Cha s th elat rvic es ( B) at r e to t se nge cu rren |
(53 ) |
(4) | (9) | (28 ) |
(65 ) |
(10 2) |
(15 8) |
- | (15 8) |
| Con ts in itia lly r gni zed in t he iod trac eco per |
(37 2) |
16 | - | - | 357 | 357 | 1 | - | 1 |
| Cha s in ima tha t ad just the CS M est tes nge |
(1,3 13) |
8 | (3) | 0 | 1,30 8 |
1,30 5 |
0 | - | 0 |
| Cha tha late loss nd l fro m lo der lyin s in ima est tes t re to nge es a rev ersa sse s on un g |
|||||||||
| ntra cts one rou s co |
(2) | (0) | - | - | - | - | (2) | - | (2) |
| Oth han tha late futu in ima ices est tes t re to er c ges re s erv |
(29 ) |
- | - | - | - | - | (29 ) |
- | (29 ) |
| Cha s th elat fut s (C ) vice at r e to nge ure ser |
(1,7 17) |
24 | (3) | 0 | 1,6 66 |
1,6 62 |
(30 ) |
- | (30 ) |
| Adj ts f rred cla or i ims ust nts to a me sse ncu |
4 | (0) | - | - | - | - | 3 | - | 3 |
| Cha s th elat ices (D) at r e to st s nge pa erv |
4 | (0) | - | - | - | - | 3 | - | 3 |
| fro hel d (E ) Net ein =B+ C+D ntra cts ex pen ses m r sur anc e co |
(1,7 66) |
20 | (13 ) |
(28 ) |
1,60 1 |
1,56 0 |
(18 6) |
- | (18 6) |
| fin ized fit o r lo Net e in in anc com e o r ex pen ses rec ogn pro ss |
335 | 0 | 3 | 3 | 5 | 10 | 345 | - | 345 |
| fin ized Net e in in OCI anc com e o r ex pen ses rec ogn |
(24 6) |
0 | - | - | - | - | (24 6) |
- | (24 6) |
| fin fro hel d (F ) Net e in ein ntra cts anc com e o r ex pen ses m r sur anc e co |
89 | 0 | 3 | 3 | 5 | 10 | 99 | - | 99 |
| Effe f ch es i n th e ri sk o f no erfo by the rei (G) ct o ang n-p rma nce nsu rers |
(4) | - | - | - | - | - | (4) | - | (4) |
| al c han the of fit o r lo CI ( G) Tot in nd in O H=E +F+ sta tem ent ges pro ss a |
(1,6 81) |
20 | (10 ) |
(25 ) |
1,60 5 |
1,5 70 |
(90 ) |
(1,8 73) |
(1,9 63) |
| (ne t of s) Pre miu paid issio elat ed ium to p ms co mm ns r rem |
12, 260 |
- | - | - | - | - | 12,2 60 |
6,1 22 |
18,3 82 |
| (ne t of s) Am ceiv ed issio elat ed t o cl aim t re oun co mm ns r |
(1,1 52) |
- | - | - | - | - | (1,1 52) |
(4,3 10) |
(5,4 62) |
| flo (I) Tot al c ash ws |
11, 109 |
- | - | - | - | - | 11, 109 |
1,8 12 |
12,9 21 |
| Effe f m xch (J) in e ct o nts tes ove me ang e ra |
122 | (0) | 1 | 1 | (9) | (8) | 114 | 461 | 575 |
| Effe f ch of soli dat d o the r ch es ( K) es i ion ct o ang n sc ope con an ang |
- | - | - | - | - | - | - | (26 ) |
(26 ) |
| Clo sing As sets |
18,0 09 |
147 | 233 | 340 | 1,72 6 |
2,29 8 |
20,4 55 |
26,4 39 |
46, 894 |
| Clo sing Lia bilit ies |
(12 ) |
0 | - | 4 | - | 4 | (8) | - | (8) |
| ba lan s of 0 (L K) Net Jun e 3 =A+ H+I +J+ ce a |
17,9 98 |
148 | 233 | 343 | 1,7 26 |
2,3 02 |
20,4 48 |
26,4 39 |
46, 886 |
| lysi s of cha red in the r 20 23, d, b rok dow n b (on ly fo ts) Ana rest ate nt c ent n P AA trac nge s oc cur yea en y m eas ure me om pon r no con |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| CSM | |||||||||
| (in Eur illio n) o m |
Esti of the tes ma PVF CF |
RA | Con trac ts red at me asu nsit ion der tra un the MR A |
Con trac ts red at me asu nsit ion der tra un the FV A |
Oth er trac ts con |
Tot al CSM |
ryin Car g t am oun of n PAA on trac ts con |
Car ryin g t am oun of P AA trac ts con |
TOT AL |
| Ope nin sets g as |
6,8 94 |
127 | 161 | 392 | 114 | 668 | 7,6 89 |
25, 602 |
33, 291 |
| Ope nin g lia bilit ies |
(8) | 0 | - | 3 | - | 3 | (5) | - | (5) |
| ba lan s of Jan y 1 (A) Net ce a uar |
6,8 86 |
127 | 161 | 395 | 114 | 670 | 7,6 83 |
25, 602 |
33, 285 |
| ized for ed CSM vice ceiv rec ogn ser s re |
- | - | (12 ) |
(46 ) |
(30 ) |
(88 ) |
(88 ) |
- | (88 ) |
| Rele of RA ase |
- | (10 ) |
- | - | - | - | (10 ) |
- | (10 ) |
| erie adj Exp ust nts nce me |
(13 6) |
0 | - | - | - | - | (13 6) |
- | (13 6) |
| Cha s th elat rvic es ( B) at r e to t se nge cu rren |
(13 6) |
(10 ) |
(12 ) |
(46 ) |
(30 ) |
(88 ) |
(23 4) |
- | (23 4) |
| Con ts in itia lly r gni zed in t he iod trac eco per |
(15 ) |
2 | - | - | 14 | 14 | (0) | - | (0) |
| Cha s in ima tha t ad just the CS est tes M nge |
(15 2) |
11 | 101 | 28 | 11 | 140 | (0) | - | (0) |
| Cha s in ima tha late loss nd l fro m lo der lyin est tes t re to nge es a rev ersa sse s on un g |
|||||||||
| ntra cts one rou s co |
(7) | 1 | - | - | - | - | (6) | - | (6) |
| Oth han tha late futu in ima ices est tes t re to er c ges re s erv |
(67 ) |
- | - | - | - | - | (67 ) |
- | (67 ) |
| Cha s th elat fut vice s (C ) at r e to nge ure ser |
(24 1) |
14 | 101 | 28 | 25 | 154 | (73 ) |
- | (73 ) |
| Adj ts f rred cla or i ims ust nts to a me sse ncu |
(3) | (1) | - | - | - | - | (4) | - | (4) |
| Cha s th elat ices (D) at r e to st s nge pa erv |
(3) | (1) | - | - | - | - | (4) | - | (4) |
| fro ein hel d (E ) Net =B+ C+D ntra cts ex pen ses m r sur anc e co |
(38 1) |
4 | 89 | (19 ) |
(5) | 66 | (31 1) |
- | (31 1) |
| fin fit o Net e in ized in r lo anc com e o r ex pen ses rec ogn pro ss |
64 | (0) | 2 | 5 | (0) | 6 | 69 | - | 69 |
| fin ized Net e in in OCI anc com e o r ex pen ses rec ogn |
385 | 0 | - | - | - | - | 385 | - | 385 |
| fin fro hel d (F ) Net e in ein ntra cts anc com e o r ex pen ses m r sur anc e co |
448 | (0) | 2 | 5 | (0) | 6 | 454 | - | 454 |
| (G) Effe f ch es i n th e ri sk o f no erfo by the rei ct o ang n-p rma nce nsu rers |
0 | - | - | - | - | - | 0 | - | 0 |
| al c han the of fit o r lo nd CI ( G) Tot in in O H=E +F+ sta tem ent ges pro ss a |
68 | 4 | 91 | (14 ) |
(5) | 72 | 143 | (1,0 46) |
(90 3) |
| paid (ne t of elat ed s) Pre miu issio ium to p ms co mm ns r rem |
2,68 7 |
- | - | - | - | - | 2,68 7 |
10,7 01 |
13,3 88 |
| ed (ne t of elat ed t o cl s) Am ceiv issio aim t re oun co mm ns r |
(1,0 51) |
- | - | - | - | - | (1,0 51) |
(8,3 14) |
(9,3 65) |
| al c ash flo (I) Tot ws |
1,6 36 |
- | - | - | - | - | 1,63 6 |
2,38 6 |
4,0 23 |
| Effe f m xch (J) in e ct o nts tes ove me ang e ra |
(14 3) |
(2) | (10 ) |
(13 ) |
(8) | (31 ) |
(17 6) |
(62 7) |
(80 4) |
| Effe f ch of soli dat d o the r ch es ( K) es i ion ct o ang n sc ope con an ang |
(0) | - | - | - | 28 | 28 | 28 | (25 0) |
(22 2) |
| Clo sing As sets |
8,4 60 |
128 | 240 | 364 | 130 | 734 | 9,3 22 |
26,0 65 |
35, 387 |
| Clo bilit sing Lia ies |
(13 ) |
0 | 2 | 3 | (0) | 5 | (7) | - | (7) |
| ba lan s of ber (L= ) Net De 31 A+H +I+ J+K ce a cem |
8,4 47 |
128 | 242 | 368 | 130 | 740 | 9,3 15 |
26, 065 |
35, 380 |
7.4 INSURANCE REVENUE AND CSM
7.4.1 Insurance revenue
The comparative analysis of insurance revenue recognised in the period is as follows:
| June 30, 2024 |
June 30, 2023 |
|
|---|---|---|
| (in Euro million) | Total | Total |
| Amounts relating to changes in LRC | ||
| CSM recognized in profit or loss for services provided | 1,521 | 1,523 |
| Release of RA | 40 | 33 |
| Release of expected incurred claims and other insurance service expenses | 5,738 | 5,621 |
| Experience adjustments | 1 | (16) |
| Recovery of insurance acquisition cash flows | 935 | 759 |
| Insurance revenue arising from non PAA contracts | 8,235 | 7,921 |
| Insurance revenue arising from PAA contracts | 34,052 | 31,273 |
| Total insurance revenue | 42,288 | 39,194 |
7.4.2 CSM
As of June 30, 2024, the total amount of CSM net of reinsurance contracts held reported in the consolidated statement of financial position was €33,564 million (€34,187 million as of December 31, 2023, restated).
| (in Euro million) | June 30, 2024 |
December 31, 2023, restated |
|---|---|---|
| CSM arising from insurance contracts and investment contracts with DPF (A1) | 35,795 | 34,868 |
| CSM arising from reinsurance contracts held (A2) | (4) | (5) |
| Amount of CSM reported on the liability side of the consolidated statement of financial position (A=A1+A2) | 35,792 | 34,862 |
| CSM arising from insurance contracts and investment contracts with DPF (B1) | (71) | (59) |
| CSM arising from reinsurance contracts held (B2) | 2,298 | 734 |
| Amount of CSM reported on the asset side of the consolidated statement of financial position (B=B1+B2) | 2,228 | 675 |
| Net totalled amount of CSM (C= A-B) | 33,564 | 34,187 |
| of which CSM arising from insurance contracts and investment contracts with DPF (C1=A1-B1) | 35,866 | 34,927 |
| of which CSM arising from reinsurance contracts held (C2=A2-B2) | (2,302) | (740) |
7.5 DISCOUNT RATES
The estimates of future cash flows are discounted based on yield curves determined in a "risk-neutral" environment. The yield curves used as of June 30, 2024, December 31, 2023, and June 30, 2023, for the main currencies are disclosed in the tables below.
| Spot discount rates used | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| EUR | USD | GBP | |||||||
| Maturity | June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
| 1 | 3.8% | 3.7% | 4.4% | 5.7% | 5.4% | 6.1% | 5.3% | 5.2% | 6.5% |
| 2 | 3.4% | 3.0% | 4.1% | 5.2% | 4.7% | 5.5% | 4.9% | 4.5% | 6.4% |
| 3 | 3.3% | 2.8% | 3.9% | 4.9% | 4.4% | 5.1% | 4.7% | 4.2% | 6.1% |
| 5 | 3.1% | 2.7% | 3.5% | 4.7% | 4.2% | 4.6% | 4.4% | 3.9% | 5.5% |
| 7 | 3.1% | 2.7% | 3.3% | 4.6% | 4.1% | 4.4% | 4.3% | 3.8% | 5.1% |
| 10 | 3.1% | 2.8% | 3.2% | 4.5% | 4.1% | 4.2% | 4.3% | 3.8% | 4.7% |
| 15 | 3.1% | 2.8% | 3.2% | 4.6% | 4.2% | 4.2% | 4.4% | 3.9% | 4.5% |
| 20 | 3.0% | 2.8% | 3.0% | 4.5% | 4.1% | 4.1% | 4.4% | 3.9% | 4.4% |
| 25 | 2.9% | 2.7% | 2.9% | 4.4% | 4.0% | 3.9% | 4.4% | 3.9% | 4.2% |
| 30 | 2.9% | 2.7% | 2.9% | 4.2% | 3.9% | 3.8% | 4.3% | 3.9% | 4.1% |
| Spot discount rates used | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| JPY | CHF | HKD | ||||||||
| Maturity | June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
|
| 1 | 0.1% | -0.1% | -0.2% | 1.0% | 1.1% | 2.0% | 4.7% | 4.5% | 5.0% | |
| 2 | 0.3% | 0.0% | -0.2% | 0.9% | 1.1% | 2.0% | 4.3% | 3.9% | 4.7% | |
| 3 | 0.3% | 0.0% | -0.1% | 0.9% | 1.1% | 1.9% | 4.1% | 3.7% | 4.5% | |
| 5 | 0.5% | 0.2% | 0.0% | 0.9% | 1.1% | 1.8% | 3.9% | 3.5% | 4.2% | |
| 7 | 0.7% | 0.3% | 0.1% | 0.9% | 1.1% | 1.8% | 3.8% | 3.5% | 4.1% | |
| 10 | 1.0% | 0.6% | 0.4% | 1.0% | 1.2% | 1.8% | 3.8% | 3.5% | 4.0% | |
| 15 | 1.5% | 1.1% | 0.7% | 1.0% | 1.2% | 1.8% | 3.8% | 3.6% | 4.0% | |
| 20 | 1.9% | 1.4% | 1.0% | 1.2% | 1.3% | 1.8% | 3.8% | 3.6% | 3.9% | |
| 25 | 2.1% | 1.6% | 1.2% | 1.3% | 1.5% | 1.9% | 3.7% | 3.6% | 3.9% | |
| 30 | 2.2% | 1.7% | 1.3% | 1.4% | 1.6% | 2.0% | 3.7% | 3.6% | 3.8% |
The discount rates are based on swaps for most currencies and government bonds for others, adjusted by adding a liquidity premium net of credit risk adjustment. For the main currencies, these adjustments are disclosed in the table below:
| Liquidity Premium, net of credit risk adjustment (in bps) | ||||||||
|---|---|---|---|---|---|---|---|---|
| EUR | USD | GBP | ||||||
| June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
| 23 | 25 | 26 | 58 | 65 | 70 | 39 | 49 | 45 |
| Liquidity Premium, net of credit risk adjustment (in bps) | ||||||||
|---|---|---|---|---|---|---|---|---|
| JPY | CHF | HKD | ||||||
| June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
June 30, 2024 |
December 31, 2023 |
June 30, 2023 |
| (6) | (6) | (6) | - | - | - | 5 | 10 | 9 |
GIE_AXA_Internal
NOTE 8 FINANCING DEBT
| June 30, 2024 |
December 31, 2023 |
|
|---|---|---|
| (in Euro million) | Carrying value | Carrying value |
| AXA | 10,799 | 10,727 |
| Subordinated green notes, 1.375%, due 2041 (in €) | 1,000 | 1,000 |
| U.S. registered redeemable subordinated debt, 8.60% 2030 (euro) | 908 | 891 |
| Subordinated debt, 5.625%, due 2054 (£) | 165 | 161 |
| Subordinated debt, 3.375%, due 2047 (€) | 1,500 | 1,500 |
| Undated Subordinated notes, 850MUS\$, 4.5% | 793 | 769 |
| Subordinated notes, 5.125%, due 2047 (USD) | 933 | 905 |
| AXA SA- Subordinated debt, 3.25%, due 2049 (€) | 2,000 | 2,000 |
| Subordinated Notes, 1,875% due 2042 (€) | 1,250 | 1,250 |
| Subordinated Notes, 4,25% due 2043 (€) | 1,250 | 1,250 |
| Subordinated Notes, 5,5% due 2043 (€) | 1,000 | 1,000 |
| AXA XL | 230 | 223 |
| Subordinated Notes, 5.5%, due March 2045 (USD) | 230 | 223 |
| AXA Italy | 66 | 66 |
| Subordinated Notes, euribor 6 months + 81bp | 66 | 66 |
| Other subordinated debts (under €100 million) | 4 | 4 |
| Subordinated debt | 11,099 | 11,020 |
| AXA | 2,850 | 2,100 |
| Euro Medium Term Note, due through 2028 | 500 | 500 |
| Euro Medium Term Note, due 2030 | 850 | 850 |
| Euro Medium Term Note, due 2033 | 750 | 750 |
| Senior Notes, May 31st, 2024 - €750M due 2034, 3.375% | 750 | - |
| AXA XL | 299 | 290 |
| Senior Notes, 5.25%, due December 2043 (USD) | 299 | 290 |
| Other financing debts instruments issued (under €100 million) | 78 | 21 |
| Financing debt instruments issued | 3,227 | 2,411 |
| TOTAL FINANCING DEBT | 14,326 | 13,431 |
GIE_AXA_Internal
NOTE 9 FINANCIAL RESULT, EXCLUDING FINANCING DEBT EXPENSES
The financial result, excluding financing debt expenses, reflects the return on invested assets generated by all activities less the net finance income or expenses stemming from insurance and reinsurance contracts. The table below highlights how this financial result impacts both the profit or loss and the other comprehensive income (OCI) before tax.
The investment return through profit or loss reported below reconciles with the amount disclosed in the consolidated statement of profit or loss. On the other hand, the reconciliation of net finance income or expenses from insurance and reinsurance contracts disclosed below is presented in Note 7.1.2.
| June 30, 2024 | |||
|---|---|---|---|
| Other | |||
| (in Euro million) Net investment income |
Insurance 6,340 |
Activities 86 |
Total 6,426 |
| of which interest revenue calculated using the effective interest method for financial assets measured at amortized cost | 456 | 7 | 464 |
| of which interest revenue calculated using the effective interest method for financial assets measured at FV OCI | 4,709 | 57 | 4,766 |
| Net realized gains and losses relating to investments at amortised cost and at fair value through OCI | 464 | (40) | 423 |
| of which net realized gains or losses relating to financial assets measured at amortized cost | (0) | 0 | (0) |
| of which net realized gains or losses relating to debt instruments measured at FV OCI (the amount reclassified upon derecognition from accumulated other comprehensive income to profit or loss for the period) |
227 | 1 | 228 |
| Net realized gains and losses and change in fair value of other investments at fair value through profit or loss |
4,345 | (22) | 4,322 |
| Change in impairment on investments | (204) | (7) | (211) |
| Investment return through profit or loss (A) | 10,944 | 16 | 10,960 |
| Time value of money including interest accreted on Contractual Service Margin | (1,743) | - | (1,743) |
| Effect of changes in discount rates and other financial assumptions TUV | 73 | - | 73 |
| Change in fair value of underlying items of insurance contracts with direct participation features TbV | (7,920) | - | (7,920) |
| Foreign exchange gains or losses | (183) | - | (183) |
| Other impacts | (97) | - | (97) |
| Net finance income or expenses from insurance contracts issued, through profit or loss (B) | (9,871) | - | (9,871) |
| Time value of money including interest accreted on Contractual Service Margin | 448 | - | 448 |
| Effect of changes in discount rates and other financial assumptions | 245 | - | 245 |
| Effect of changes in the risk of non-performance by reinsurers | 17 | - | 17 |
| Foreign exchange gains or losses | 22 | - | 22 |
| Other impacts | (8) | - | (8) |
| Net finance income or expenses from reinsurance contracts held, through profit or loss (C) | 723 | - | 723 |
| Total net finance income or expenses from insurance contracts issued and reinsurance contracts held, through profit or loss (D=B+C) |
(9,148) | - | (9,148) |
| Financial result recognized in profit or loss (E=A+D) | 1,795 | 16 | 1,812 |
| Realised capital gains or losses on equity instruments measured at fair value through OCI, without recycling in profit or loss |
199 | (1) | 198 |
| Changes in fair value of financial investments through OCI TUV | (7,483) | (112) | (7,594) |
| Investment return through OCI (F) | (7,284) | (113) | (7,397) |
| Net finance income or expenses from insurance contracts issued through OCI (G) (b) | 6,278 | - | 6,278 |
| of which changes in fair value of underlying items of insurance contracts with direct participation features | 3,308 | - | 3,308 |
| of which realised capital gains or losses on equity instruments measured at fair value through OCI, without recycling in profit or loss |
(21) | - | (21) |
| Net finance income or expenses from reinsurance contracts held through OCI (H) | (391) | - | (391) |
| Total net finance income or expenses from insurance contracts issued and reinsurance contracts held through OCI (I=G+H) |
5,888 | - | 5,888 |
| Financial result recognized in OCI (J=F+I) | (1,396) | (113) | (1,509) |
| Impact of financial result on the statement of comprehensive income (before tax) (K=E+J) | 399 | (96) | 303 |
(a) Including both the change in fair value with recycling in profit or loss and the change in fair value without recycling in profit or loss.
(b) The effect of the risk mitigation option is included in P&L for €114m and in OCI for €579m, respectively.
| June 30, 2023 | |||
|---|---|---|---|
| (in Euro million) | Insurance | Other Activities |
Total |
| Net investment income | 5,191 | 358 | 5,549 |
| of which interest revenue calculated using the effective interest method for financial assets measured at amortized cost | 391 | 6 | 397 |
| of which interest revenue calculated using the effective interest method for financial assets measured at FV OCI | 4,355 | 54 | 4,409 |
| Net realized gains and losses relating to investments at amortised cost and at fair value through OCI | (1,286) | (14) | (1,300) |
| of which net realized gains or losses relating to financial assets measured at amortized cost | (2) | 0 | (2) |
| of which net realized gains or losses relating to debt instruments measured at FV OCI (the amount reclassified upon derecognition from accumulated other comprehensive income to profit or loss for the period) |
(1,426) | (12) | (1,438) |
| Net realized gains and losses and change in fair value of other investments at fair value through profit or loss |
4,563 | (31) | 4,532 |
| Change in impairment on investments | (155) | (6) | (161) |
| Investment return through profit or loss (A) | 8,314 | 307 | 8,620 |
| Time value of money including interest accreted on Contractual Service Margin | (1,342) | - | (1,342) |
| Effect of changes in discount rates and other financial assumptions TUV | 293 | - | 293 |
| Change in fair value of underlying items of insurance contracts with direct participation features TbV | (6,407) | - | (6,407) |
| Foreign exchange gains or losses | 171 | - | 171 |
| Other impacts | (248) | - | (248) |
| Net finance income or expenses from insurance contracts issued, through profit or loss (B) | (7,533) | - | (7,533) |
| Time value of money including interest accreted on Contractual Service Margin | 241 | - | 241 |
| Effect of changes in discount rates and other financial assumptions | (33) | - | (33) |
| Effect of changes in the risk of non-performance by reinsurers | (6) | - | (6) |
| Foreign exchange gains or losses | (49) | - | (49) |
| Other impacts | (1) | - | (1) |
| Net finance income or expenses from reinsurance contracts held, through profit or loss (C) | 153 | - | 153 |
| Total net finance income or expenses from insurance contracts issued and reinsurance contracts held, through profit or loss (D=B+C) |
(7,380) | - | (7,380) |
| Financial result recognized in profit or loss (E=A+D) | 933 | 307 | 1,240 |
| Realised capital gains or losses on equity instruments measured at fair value through OCI, without recycling | |||
| in profit or loss | 183 | (64) | 120 |
| Changes in fair value of financial investments through OCI TUV | 7,163 | 30 | 7,193 |
| Investment return through OCI (F) | 7,346 | (34) | 7,312 |
| Net finance income or expenses from insurance contracts issued through OCI (G) (b) | (6,213) | - | (6,213) |
| of which changes in fair value of underlying items of insurance contracts with direct participation features | (353) | - | (353) |
| of which realised capital gains or losses on equity instruments measured at fair value through OCI, without | (83) | - | (83) |
| recycling in profit or loss Net finance income or expenses from reinsurance contracts held through OCI (H) |
420 | - | 420 |
| Total net finance income or expenses from insurance contracts issued and reinsurance contracts held | (5,792) | - | (5,792) |
| through OCI (I=G+H) | |||
| Financial result recognized in OCI (J=F+I) | 1,554 | (34) | 1,520 |
| Impact of financial result on the statement of comprehensive income (before tax) (K=E+J) | 2,487 | 273 | 2,760 |
(a) Including both the change in fair value with recycling in profit or loss and the change in fair value without recycling in profit or loss.
(b) The effect of the risk mitigation option is included in P&L for €314m and in OCI for €629m, respectively.
NOTE 10NET INCOME PERORDINARY SHARE
The Group calculates a basic net income per ordinary share and a diluted net income per ordinary share:
- the calculation of the basic net income per ordinary share assumes no dilution and is based on the weighted average number of outstanding ordinary shares during the period;
- the calculation of diluted net income per ordinary share takes into account shares that may be issued as a result of stock option and share based compensation plans. The effect of stock option and share based compensation plans on the number of fully diluted shares is taken into account only if options and share based compensations are considered to be exercisable on the basis of the average stock price of the AXA share over the period.
| (in Euro Million) QRS | June 30, 2024 |
June 30, 2023 |
|---|---|---|
| NET INCOME GROUP SHARE | 4,020 | 3,833 |
| Undated subordinated debt financial charge | (106) | (92) |
| NET INCOME INCLUDING IMPACT OF UNDATED SUBORDINATED A DEBT |
3,914 | 3,741 |
| Weighted average number of ordinary shares (net of treasury shares) - opening |
2,226 | 2,265 |
| Increase in capital (excluding stock options exercised) | - | - |
| Stock options exercised TWV | 1 | 1 |
| Treasury shares TWV | (18) | 34 |
| Capital increase/Decrease TWV | - | (59) |
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES B |
2,209 | 2,241 |
| BASIC NET INCOME PER ORDINARY SHARE C = A / B |
1.77 | 1.67 |
| Stock options | 1 | 1 |
| Other | 4 | 4 |
| FULLY DILUTED - WEIGHTED AVERAGE NUMBER OF SHARES PZR D |
2,215 | 2,247 |
| FULLY DILUTED NET INCOME PER ORDINARY SHARE E = A / D |
1.77 | 1.67 |
(a) Except for number of shares (million of units) and earnings per share (Euro).
(b) Weighted average.
(c) Taking into account the impact of potentially dilutive impacts
NOTE 11 SUBSEQUENT EVENTS
AXA entered into an exclusive negotiation to sell AXA Investment Managers to BNP Paribas
On August 1, 2024, AXA announced that it has entered into an exclusive negotiation to sell its asset manager AXA Investment Managers ("AXA IM") to BNP Paribas for cash proceeds(1) of €5.1 billion. In addition, AXA would receive €0.3 billion consideration from the sale of Select(2) to AXA IM prior to the closing of the proposed transaction. The total estimated transaction value is expected to be €5.4 billion, representing a multiple of 15x 2023 earnings. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership under which BNP Paribas would provide investment management services to AXA. The combination of AXA Investment Managers and BNP Paribas would create a leading European asset manager, with total assets under management of €1.5 trillion(3) .
The intention to exit the Asset Management business further emphasizes the Group's strategy to simplify its business model and to focus on its core insurance activities. In particular, AXA's Life & Savings business is wellpositioned to grow, driven by the Group's strong distribution and product design capabilities, and our customers will benefit from a broader array of asset classes, including continued access to a best-in-class Alternatives asset management platform. AXA retains full authority over product design, asset allocation and asset-liability management decisions.
The completion of the transaction is subject to customary closing conditions, including the information and consultation of employee representative bodies, followed by the signing of the Share Purchase Agreement and the receipt of regulatory approvals, and is expected to be finalized by the second quarter of 2025.
Starting from FY24, AXA IM will be classified as 'discontinued operations' in AXA's consolidated financial statements and AXA will continue to account for the contribution of AXA IM to the Group's Underlying Earnings until the expected completion of the sale. Upon completion, the proposed transaction is expected to result in (i) a reduction in Underlying Earnings of ca. Euro 0.4 billion on an annualized basis for the Group and (ii) an estimated one-off Net Income gain of €2.2 billion. AXA intends to offset the earnings dilution from the proposed disposal with a share buyback, currently estimated at Euro 3.8 billion, to be launched immediately following the closing of the proposed transaction. The proposed transaction and the associated share buyback are expected to have a neutral impact on AXA's Solvency II ratio. The proposed transaction is expected to have no material impact on the key financial targets(4) that were communicated as part of the 'Unlock the Future' plan.
(4) Underlying earnings per share CAGR 2023-2026E between 6% and 8%, Underlying return on equity between 14% and 16% over 2024E to 2026E, over Euro 21 billion cumulative organic cash upstream over 2024E to 2026E.
(1) For 100% share capital of AXA IM, of which 98% is owned by the AXA Group (67% by AXA SA and 31% by other AXA entities), subject to price adjustment mechanisms.
(2) Select (formerly named 'Architas') is an AXA company offering investment solutions, including management of funds, investment management services, advisory services and investment related services, to retail customers in France, Belgium, Hong Kong and Indonesia. (3) As of December 31st, 2023, based on companies' financial disclosures.
III. Statutory auditors' review report
/
on the 2024 Half Year Financial Information
GIE_AXA_Internal
AXA SA
Statutory Auditors' Review Report on the half-year Financial Information
(Period from January 1st to June 30th 2024)
STATUTORY AUDITORS' REVIEW REPORT ON THE 2024 HALF YEAR FINANCIAL INFORMATION
ERNST & YOUNG Audit
Tour First TSA 14444 92037 Paris-La Défense cedex
S.A.S. à capital variable 344 366 315 R.C.S. Nanterre
Commissaire aux Comptes Membre de la compagnie régionale de Versailles et du Centre
KPMG S.A.
Tour Eqho 2, avenue Gambetta CS 60055 92066 Paris La Défense cedex IV
Commissaire aux Comptes Membre de la compagnie régionale de Versailles et du Centre
Statutory Auditors' Review Report on the half-year Financial Information
(Period from January 1st to June 30th, 2024)
To the Shareholders, AXA SA 25, avenue Matignon 75008 Paris
In compliance with the assignment entrusted to us by your Shareholders' Meetings and in accordance with the requirements of Article L. 451-1-2-III of the French Monetary and Financial Code (Code monétaire et financier), we hereby report to you on:
- the review of the accompanying condensed half-year consolidated financial statements of AXA SA, for the period from January 1st to June 30th, 2024;
- the verification of the information presented in the half-year management report.
These condensed half-year consolidated financial statements are the responsibility of the Board of Directors. Our role is to express a conclusion on these financial statements based on our review.
1. Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable in France. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with professional standards applicable in France and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the condensed half-year consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, standard of the IFRSs as adopted by the European Union applicable to interim financial information.
2. Specific verification
We have also verified the information presented in the half-year management report on the condensed half-year consolidated financial statements subject of our review.
STATUTORY AUDITORS' REVIEW REPORT ON THE 2024 HALF YEAR FINANCIAL INFORMATION
We have no matters to report as to its fair presentation and consistency with the condensed half-year consolidated financial statements. It is not our responsibility to conclude on the fair presentation and consistency with the halfyear financial statements of the solvency related information.
Paris-La Défense, August 1st, 2024
The Statutory Auditors
French original signed by*
ERNST & YOUNG Audit KPMG S.A.
IV
Olivier Durand Patrick Menard Pierre Planchon Antoine Esquieu
*This is a translation into English of the statutory auditors' review report on the half-year financial information issued in French and is provided solely for the convenience of English-speaking users. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.
IV. Statement of the person responsible
/
for the Half Year Financial Report
Statement of the person responsible for the Half-Year Financial Report
I certify, to the best of my knowledge, that the consolidated interim financial statements for the past half-year have been prepared in accordance with applicable accounting standards and give a fair view of the assets, liabilities and financial position and profit or loss of the Company and all the undertakings included in the consolidation, and that the interim management report, to be found in the first part of this Report, presents a fair review of the important events that have occurred during the first six months of the financial year, their impact on the financial statements, major related-party transactions, and describes the principal risks and uncertainties for the remaining six months of the financial year.
Paris, August 1st, 2024.
Thomas Buberl Chief Executive Officer
