Half Year 2015 Earnings

ALL NEWS  |  Finance & Strategy
Aug 4, 2015

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Key figures

  • Underlying Earnings up 12% on a reported basis, benefitting from a positive Forex impact
  • Underlying Earnings per share up 11% and Adjusted Earnings per share up 12%

On a comparable basis (at constant Forex):

  • Total Revenues up 2% to Euro 55 billion
  • Underlying Earnings up 2% to Euro 3.1 billion
  • Adjusted Earnings up 3% to Euro 3.5 billion
  • Net Income down 7% to Euro 3.1 billion

AXA's Chairman & CEO, Henri de Castries, comments on half year 2015 earnings

Henri de Castries
Chairman & Chief Executive Officer of AXA (2000-2016)

This is a very strong first half for AXA, with growth in revenues, growth in earnings, and it is also a first half of continuing transformation of the group to face the new challenges.

Key Highlights of 1H15


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

  • Life & Savings revenues increased by 1% with growth in both mature and high growth markets;
  • Property & Casualty revenues were up 1%, mainly driven by a positive price effect of 1.9% on average, partly offset by pruning actions in Continental Europe and MedLA high growth markets;
  • Asset Management revenues grew by 6%, supported by both AB and AXA IM, mainly driven by increased management fees as a result of higher average assets under management.

Life & Savings New Business Volume (Annual Premium Equivalent, APE) was up 5%, mainly driven by (i) Unit-Linked mainly due to the ongoing success of hybrid products and higher sales of pure Unit-Linked products in Continental Europe, South-East Asia, India & China and Japan, partly offset by the UK and (ii) Protection & Health as strong growth in France and South-East Asia, India & China more than offset the impact of the continuing repositioning of the Group Life product mix in Switzerland initiated in 1Q14. This was partly offset by (iii) lower sales in G/A Savings, in line with the strategic focus on Unit-Linked and Protection & Health products.

Life & Savings net inflows amounted to Euro +5.3 billion compared to Euro +2.8 billion in 1H14. This was mainly driven by Protection & Health at Euro +5.1 billion, Unit-Linked at Euro +1.6 billion, partly offset by G/A Savings at Euro -1.8 billion in line with the strategy.


Life and Savings New Business Value margin was stable at 34% mainly reflecting lower unit costs offset by market impact. New Business Value (NBV) increased by 5% to Euro 1.3 billion;

In Property & Casualty, current year combined ratio improved by 0.1 point to 96.9%. All-year combined ratio stood at 95.1% down from 95.8% in 1H14.


  • Underlying Earnings were up 2% to Euro 3.1 billion, mainly driven by Life & Savings and Asset Management segments.
  • Adjusted Earnings increased by 3% to Euro 3.5 billion, mainly driven by higher Underlying Earnings.
  • Net Income was down 7% to Euro 3.1 billion, as the positive impact from higher Adjusted Earnings were more than offset by unfavorable changes in the fair value of financial assets and derivatives not eligible for hedge accounting mostly attributable to interest rates increases.
  • Adjusted ROE stood at 16.1%, down 0.6 point vs. 1H14 mainly driven by an increase in average Shareholders' Equity, partially offset by higher Adjusted Earnings.

Balance Sheet

  • Shareholders' equity was Euro 66.9 billion, up Euro 1.7 billion vs. December 31, 2014, mainly driven by (i) favorable forex movements and (ii) Net Income contribution, partly offset by (iii) dividend payment and (iv) lower unrealized capital gains on financial assets following an increase in interest rates.
  • Solvency I ratio was at 258%, down 8 points vs. December 31, 2014 mainly driven by lower unrealized capital gains following an increase in interest rates, partly offset by underlying earnings contribution.
  • Economic solvency ratio was at 215%, up 14 points vs. December 31, 2014 mainly driven by operating return contribution and favorable forex movements.
  • Debt gearing was at 23%, down 1 point vs. December 31, 2014 in line with our objectives.

Capital Management

Significant transactions announced since January 1, 2015:

  • Confirmation of AXA's intention to increase its stake in its Indian insurance joint-ventures with Bharti Enterprises to 49% from 26% on March 12, 2015;
  • Completion of the acquisition of a 7% stake in Africa Re for a total consideration of Euro 54 million on March 17, 2015;
  • Completion of the acquisition of 100% of BRE Insurance, mBank's Property & Casualty subsidiary in Poland, and launch of the partnership with mBank for a final consideration of Euro 140 million on March 30, 2015;
  • Announcement of the acquisition of the private medical insurance business of Simplyhealth on May 13, 2015. The transaction was completed on August 3, 2015.
  • Announcement of the acquisition of the P&C large commercial risks insurance subsidiary of SulAmérica in Brazil for a total consideration of Euro 40 million on May 22, 2015;
  • Announcement of the termination of the sale and purchase agreement between AXA, Certinvest and SIF Transilvania to sell AXA's Life & Savings insurance operations in Romania on July 3, 2015.
  • Announcement of a partnership with Commercial International Bank (CIB) and of the acquisition of Commercial International Life, the Life & Savings joint-venture between CIB and Legal & General in Egypt, for a cash consideration of Euro 88 million on July 12, 2015;
  • Announcement of exclusive negotiation for the potential acquisition of Genworth Lifestyle Protection Insurance for a total cash consideration of Euro 475 million on July 22, 2015.

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