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“Simplify to accelerate”: AXA holds its 2017 Investor Day

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Nov 14, 2017
published at 7:45 AM CET

AXA is hosting today an investor conference in Paris where Thomas Buberl (Group CEO), George Stansfield (Group Deputy CEO and General Secretary) and Gérald Harlin (Group Deputy CEO and Chief Financial Officer) will present the following key topics:

  • Simplified footprint focusing on fewer countries, emphasizing scale and potential, and continuing AXA’s shift towards preferred segments
  • Simplified operating model based on five major geographies and a refocused corporate center
  • Filing of a registration statement with the US Securities and Exchange Commission (“SEC”) by AXA US as the first step towards its IPO, and update the impact for AXA of its listing and sale of a minority stake
  • Reliability and sustainability of AXA’s significant cash generation capacity, supporting dividends, growth and innovation
  • Reaffirmation of AXA’s confidence to deliver on its Ambition 2020 targets
Thomas Buberl
Chief Executive Officer of AXA

AXA is well on track to achieve its Ambition 2020 targets, and is taking important steps towards making the Group simpler for all our stakeholders and to foster growth.

We are building the future of AXA according to a clear strategic view focusing on fewer countries, with emphasis on scale and potential. We will continue to shift our portfolio towards our preferred segments, favoring products with high frequency customer contacts and innovative additional services. We reaffirm our preference for Health, Protection and the P&C commercial lines segments, and are dedicating Euro 200 million per year to innovation, from within our existing M&A budget.

Our new operating model is designed to provide our teams with increased empowerment and accountability for their operational performance, making our transformation tangible on the ground, as close as possible to our clients.

With the commitment and the engagement of our teams, we have delivered a strong performance, allowing us to reaffirm our confidence to deliver annual underlying earnings per share growth over the plan period well within our 3-7% target range. Our reliable and sustainable cash generation capacity supports our investment for growth and sustained attractive dividends.

Key financial information covered today:

Leaner central functions

  • 25% reduction in central functions costs
  • Euro 0.3 billion* cost efficiencies to be achieved over the coming 2 years
  • Accelerating delivery of the Ambition 2020 Euro 2.1 billion cost efficiency target

Reaffirmation of Ambition 2020 targets

  • 3-7% UEPS CAGR** over 2015-2020E
  • Adjusted return on equity between 12% and 14% over the period 2016-2020E
  • Cumulative Group Operating Free Cash Flows of Euro 28-32 billion over 2016-2020E
  • Cumulative cash remitted to Group holding of Euro 24-27 billion over 2016-2020E, before US IPO proceeds
  • Solvency II ratio target range between 170% and 230%

Investment in innovation

  • Euro 200 million per year dedicated to innovation, from within our existing M&A budget

* Subject to consultation process with our social partners
** Underlying Earnings Per Share Compound Annual Growth Rate over the 5-year plan period

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