Half Year 2014 Earnings

ALL NEWS  |  Finance & Strategy
Aug 1, 2014

On August 1, 2014, follow live presentations to the:

  • Media at 9:00am CEST > Access
  • Analysts at 3:00pm CEST > Access

You will also have access to all earning-related documents.

Key figures

  • Total revenues up 2% to Euro 50 billion
  • Underlying Earnings up 11% to Euro 2.8 billion
  • Adjusted Earnings up 8% to Euro 3.1 billion
  • Net Income up 25% to Euro 3.0 billion
Henri de Castries
Chairman & Chief Executive Officer of AXA (2000-2016)

It's a very strong first half, as reflected by the growth in revenues and the earnings. It's the best ever first half for AXA in terms of underlying earnings. I think we are very well aligned with our strategic plan Ambition AXA

Key Highlights of 1H14


Total Revenues were up 2%, driven by growth in all business lines:

  • Life & Savings revenues increased by 2%, with growth in both mature and high growth markets
  • Property & Casualty revenues were up 2%, mainly driven by an overall positive price effect of 2% on average and portfolio growth, partly offset by a lower average premium
  • Asset Management revenues grew by 4%, supported by both AllianceBernstein and AXA IM driven by higher management fees

New Business Volume (Annual Premium Equivalent, APE) was stable, following 8% year-on-year growth in 2Q14. For the half year, the increase in sales of G/A Savings and Unit-Linked products was offset by lower sales of Protection & Health stemming from repositioning of the Group Life product mix in Switzerland towards Pure Protection products with lower premiums and higher margins, and the non-repeat of 1Q13 exceptional Health sales recorded in Germany.

Life & Savings net inflows amounted to Euro +2.8 billion, mainly driven by strong net inflows in G/A Protection & Health at Euro +4.3 billion, partially offset by net outflows in G/A Savings at Euro -1.5 billion and Unit-Linked at Euro -0.1 billion, of which Euro -1.1 billion from the success of the Variable Annuity GMxB buyout offer in the US.

Asset management net flows were Euro +14 billion, with Euro +11 billion at AXA IM and Euro +3 billion at AllianceBernstein.


  • Life and Savings NBV margin increased by 2 points to 34%, mainly reflecting an improved business mix. As a result, NBV was up 6% to Euro 1.1 billion.
  • In Property & Casualty, current year combined ratio improved by 0.4 point to 97.1%, despite higher natural catastrophe charges of 1.7%; all year combined ratio was 95.8% driven by lower positive prior year reserve developments.


  • Underlying Earnings were up 11% to Euro 2.8 billion, driven by strong increases in all business lines. On a reported basis Underlying Earnings were up 8%, the difference arising from the adverse impact of Forex.
  • Adjusted Earnings increased by 8% to Euro 3.1 billion, mainly driven by higher Underlying Earnings despite lower net realized capital gains that amounted to Euro 335 million.
  • Adjusted ROE increased from 16.5% to 16.8% mainly driven by the strong increase in Adjusted Earnings.
  • Net Income was up 25% to Euro 3.0 billion, mainly driven by higher Adjusted Earnings, a favorable change in fair value of financial assets and derivatives mainly attributable to interest rates decrease and lower restructuring costs.

Balance sheet

  • Debt gearing was stable at 24% at June 30, 2014.
  • Shareholders' equity was Euro 58.9 billion, up Euro 6.0 billion, mainly driven by higher unrealized capital gains, net income contribution, as well as the insuance of Euro 1.0 billion subordinated debt and positive Forex, partly offset by dividend payment and adverse change in pension benefits.
  • Solvency I ratio was at 254%, up 33 points vs. December 31, 2013 mainly driven by the impact of lower interest rates and strong contribution from Underlying Earnings, partly offset by business growth and negative forex impact.
  • Economic solvency ratio was at 215%, up 9 points vs. December 31, 2013 due to operating return partially offset by the impact of lower interest rates.

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