Axa Sa Ord

Hello everyone, thank you for virtually attending this press conference where we present the half-year results for 2026 of the AXA Group. Thomas Buberl, CEO for the group, will be presenting the main highlights and takeaways of this half-year, then Guillaume Buran, who is in charge of finance, risk and the Writings and Technology Group, and Alban de Mailly Nesle, CFO will be presenting in details our businesses and our main key indicators following this presentation. Obviously, Thomas Buberl, Guillaume Borie, and Alban de Mailly Nesle, as well as other members of the Management Board will be available to answer your questions. I now turn it over to Thomas Buberl, CEO for the AXA Group. Thank you, Ziad, and good morning, everyone. Welcome to the press conference on the AXA Group's 2026 half-year results. First and foremost, I would like to express my solidarities with the victims of the wildfires, more specifically in the two countries that are key to the group France and Spain, and of course with the firefighters and all those who are involved in fighting the fires. In response to the devastating fires that have ravaged the Var, Gironde and Lens regions, we have activated our climate risk crisis response plan, Climagir, which enables us to assist our affected policyholders, particularly by providing emergency housing and helping them meet their immediate needs. I will have the opportunity to return to this topic in a few moments. To begin, I will present the key takeaways I have drawn from the first half of the year. Next, I will turn the floor to Guillaume Borie, the group's chief financial strategy and the writing risk and technology officer, and then to Alban de Mailly Nesle, chief financial officer, who will present our business and our key financial indicators in detail. We will of course be available after that to answer your questions. Now AXA delivered a remarkable performance in the first half of the year. You can see that our premiums reached 66.3 billion euros which represents a 5% increase compared to the first half of 2025. This demonstrates the strength of our business model, momentum, the quality of our offerings, and above all the effectiveness of our strategy based on organic growth. This growth is profitable. Our underlying earnings are rising by 9%, excluding AXA-IM to 4.5 billion euros. The underlying earnings per share increased by 8% at the high end of our target range. Finally, our balance sheet is very strong, with a solvency ratio, too, that remains at a high level of 218%, which is up by 3 percentage points versus January 1, 2026. I would like to thank our employees and agents to whom we owe this excellent performance, as well as our customers for their great loyalty. I will now present the specifics of this performance by business line. All our business lines are contributing to a very strong performance, whether in terms of premiums or underlying earnings. Our engines are running at full speed. This performance once again demonstrates the sound diversification of business model which helps us navigate sometimes volatile market environments, the quality of our operations and the execution of our priorities across all business lines and customer segments. and our efficiency gains particularly through our technology and artificial intelligence initiatives. Alban will go into more details about these figures. The AXA share is outperforming the major indices such as the CAC 40 or the stocks insurance index. This positive trend is the outcome of AXA's financial and extra financial performance. It also demonstrates Our ability to implement a strategy that is perfectly suited to our business environment. Over the past decade, we have transformed the group by strengthening its key strength. We have reduced access exposure to financial risks such as the current volatility in interest rates right now. The consistency of our earnings, the predictability of our performance, and our resilience to instability have become our hallmark. This is what enables us to continue supporting our customers every day Despite a challenging risk environment, this is what enables us to provide solutions for new protection needs and to serve new categories of policyholders. I also wanted to take this opportunity of our presentation to reiterate our commitments to our policyholders in the face of the devastating wildfires and more broadly in support of the Climate Transition. Whether dealing with wildfires, severe flooding, or the hailstorms that struck France earlier this year, we stand by our policyholders to face an increasing number of climate-related events. More specifically in France, we paid out 5.6% of our premiums to cover natural disaster claims, compared to 3.5% at the group level. This clearly demonstrates the extent to which France is currently bearing the brunt of climate change. In response, We have made several types of commitments. One commitment of being present when there are crisis situations. This requires, for example, in France through our Klim Agir initiative, which we activate for every major climate event, as well as the support we provide to the Red Cross or firefighters through the AXA Fund for Human Progress. We also invest in prevention, which will play an increasingly vital role in ensuring insurability and managing the risk cost. Prevention is an essential investment. We must make collectively, not only to reduce the impact of climate risks, but also in the areas of health and cyber security for instance. I would like to highlight here two recent prevention initiatives designed to benefit our policyholders. The first one is a hailed prevention scheme that reimburses auto policies of up to $50 for parking cars for motor-related events during severe hailstorms following a receipt of an SMS alert. Secondly, a free health prevention checkup offered to policyholders covered by our group insurance plans. Finally, we remain steadfast in our commitment to reducing carbon emissions across our insurance and investment portfolios. I refer you to the examples shown on this slide, which demonstrate the progress that we have made. This slide outlines the key financial objectives of the Unlock the Future plan for the first half of the year. The key takeaways are AXA has delivered remarkable performance during this first half, building on the momentum of our 2025 year. We have achieved excellent performance across all our business lines. Our profitability remains stable and solid. And lastly, we are confident in our ability to deliver growth in 2026 in the lying earnings per share growth at the upper end of our target range. I will now turn it over to Guillaume Borie.

Thank you very much, Thomas. Hello, everyone. And thank you for being here today. I will now be reviewing some key facts and numbers about AXA's operating performance in this first half and first and foremost by reviewing performance levels across all of our markets. All our business lines, as Thomas said, are showing growth which is reflected across all markets and all of our operations. I want to emphasize the fact that such performance has been outstanding across all of our geographies with positive contributions by each and every one of our countries. At AXA Group today, all of our countries, all of our geographies have been positively contributing to the underlying earnings performance. and the outstanding performance by AXA XL is to be underlined, which underlying earnings reached 1 billion euros in this first half, growing 4% in a more challenging market, which demonstrates The quality of AXA Excel's teams and how committed and dedicated they are to serve their clients to continue to grow and expand the business operations and deliver stellar profitability. And AXA Excel, next to AXA France, confirmed that it is the second engine for growth for the AXA Group. You can also see A similar outstanding performance level by our European market through seven countries with underlying earnings up 12% with revenues up 6%. Finally, Asia, Africa and Latin America have also registered robust profitability in excess of 900 million euros with growth up 7% in the first half. What these great results show across geographies is the operating robustness of the group with our ability to keep growing and expanding our underlying earnings year in year out across each and every country on the back of the commitments and dedication of our teams of our distribution channels and we appreciate and thank them for this as well as the continual investment of the group in the quality of the teams In the staffing and recruitment with the best talent in our expertise areas and in the quality of our technology assets, this operating performance is not incidental. It reflects three key fundamentals, our execution discipline, Our orientation towards growth and conquest and innovation spirit. With respect to execution discipline, you can know that right from the beginning of the strategic plan Unlock the Future, we have improved across the board on the operational level, across all of our operations. This is very well summarized in this page with revenues growing with CAGR Thank you very much. So showing increased technical profitability of our operations. This is fundamental as it reflects the outstanding excellence levels of our teams and our capacity to offer the best possible products and services. And we've kept working on our admin expense ratio and you can see that the admin expense ratio has been reduced by 40 bps from the beginning of the plan. Now all this has been reflecting the fact that we are well positioned to achieve The targets and objectives of the strategic plan, as Thomas Buberl just said a minute ago, which also reflects the strengthening of the competitiveness of the group across all of its markets. I want to emphasize this point, because competitiveness is the engine for our growth. Thanks to our competitiveness across the world, we can win new markets. Business, new clients, better serving and supporting these clients in the face of the multiplicity of risk. Our profitability and our competitiveness are authentically there to serve and support our clients and to support our capacity to be there alongside them over the longer term. The trust and confidence of our clients has showed up in the first half as we gained an additional 2 million clients, which is more than what we accomplished across all of fiscal 2025, which shows the extent to which our winning strategy has been delivering results, knowing that we are pushing the acceleration of this strategy, which is reflected by our higher performance levels. And we do that through several levers. We want to keep investing on the quality of the customer experience and especially through artificial intelligence by offering simplified customer journeys, by providing better explanation, communication on the risks they are confronted with, and the insurance coverage they should take out. Also, our winning spirit is based on the quality of our distribution channels, first and foremost being our tied agents, as well as all exclusive distribution networks for AXA, which is especially active to serve and support our clients and improve their satisfaction levels on the back of their talents and experiences. I would also say that Assa Group has been a leader in direct insurance business. We are the first direct insurer in continental Europe and we showed up our positions last year by acquiring Prima in Italy, the earnings of which in the first half are excellent which adds up to a network which was already very robust on the back of a long-term strategy by the group with our direct assurance leader in France which has a leadership position and which registered outstanding stellar performance in the first half of fiscal 26. Finally our winning strategy builds upon significant efforts which we deliver all out to cover all of our customer segments and in this respect For the last few years at AXA, we've conducted an AXA essential initiative to better support and serve the lowest income households across the world. This inclusive insurance initiative enables us today to cover more than 20 million clients and this share of 20 million Clients was expected by the end of 26 but in fact as early as June of 2026 we've exceeded this mark which is a business we operate in 20 countries of the group and to deploy it we use distribution models which are trusted Thank you very much. which is higher or equal to that of the market and you can see how it translates the great efforts we do to best serve and support our clients. The last point is about our innovation strategy and the way we are placing innovation at the service of our expertise because our expertise we believe is the key factor for thriving in a fast-changing world. In a few worlds, AI today is no longer a trial and error solution at AXA. It's been Thank you very much. are done quicker and better so that we free up time for higher added value activities to best serve our clients. We've also accelerated the deployment of agentic AI solutions in a very secure context of course and this is of great importance in our AI strategic plan with a few examples that I will review. In the UK we have deployed a new tool to better manage The underwriting and claims management, which enables our claims managers to come up with a reimbursement offer quicker and better. In Italy, we have developed a solution called Preventia, which is a mobile AI application which enables our tied agents to conduct risk-related inspections directly through AI tools with their clients. I'm emphasizing this example because it directly translates the efforts we're conducting in the field of prevention which Thomas mentioned earlier. Thanks to such technology, we promote preventing risks much faster and much better. Anticipating and preventing risks will provide better safety, better security for our policyholders, enabling them to better understand their surrounding environment. Finally, in Switzerland, we are mainstreaming chatbots to improve communication. customer experience with chatbots enabling our clients to explore all of our products and services through an app which is directly incorporated into the chat GPT solutions providing faster clear answers available at all times while leaving your teams to manage the most complex cases I will conclude by saying one thing innovation attacks a group in the in the way we use AI has been done in the context of a clear strategy to combine speed and the power of AI building up on our expertise and a combination of the two will enable us not to replace human beings but much to the contrary to place the human beings at the center of what matters most to better serve and support our clients in the face of a more complex world. This is what I wanted to tell you about our operating performance at AXA Group and the way we try and transform everything of course We'll repeat this when we launch our strategic plan and I'm turning over to our CFO Alban de Mailly Nesle for the financial performance.

Thank you Guillaume, hello everyone. I will now dive deep into how this beautiful underlying earnings translated into our figures. Let me start with P&C. What you can see on this slide It's a beautiful growth in our revenues in P&C insurance. Let me start with the retail one, which is up by 8%, which shows what Guillaume said, the fact that we conquered 2 million new net contracts in the first half, plus more than the same period last year. In commercial lines, we continue to grow in Europe. As well as in France, especially in France with a 6% rise of our revenues. On the other hand in Excel with the market conditions slightly more tense, we focused on our margins. The revenue is slightly down by 1% for the insurance part. Now reinsurance, where the context is even more complicated, we reduced our revenue by 9% to once again focus on our margins. The underlying earnings in P&C grew by 6% which reflects that rising revenues and it also reflects that our financial results have improved and we have maintained our margins as we can see on the next page. The combined ratio for the group is at an excellent level of 90.1%, nearly identical to what we had last year at the same period. It was at 90% then. Once again, it translates not only the focus we had on our margins, but also all the initiatives that we are adopting, whether how we manage claims or regarding prevention, in order to manage the cost of our claims. With a very good figure, I'd like to insist on two elements. We continued to reinforce the caution in our reserves that combined ratio allows us to do so. Let me also insist on the expenses of NatCats which is at 3.5% of our premiums for the group as a whole. And this is why it's interesting to have a highly diversified model which enables us both to face NatCats that we are seeing in France and in Southern Europe and which are offset because in other countries we don't see NatCats at the same time. So the expense of nutcats remained steady on the whole compared to last year. Now, let me review the health and life insurance. This is our second leg, where we see very strong growth in that business, with a 9% growth of our premiums in the life business, especially in unit linked accounts, but also the fund in euros at 11% or protection at 6% in the health area. Sharp growth. Whether in the retail insurance or the Collective ones respectively eight and five percent. What matters a lot for us as well is the net inflows which stands at 4.7 billion up compared to last year where it was only at 3.6 billion that net new cash is the way we pile up reserves and assets that will help us in the coming years to release a higher result so it's important for us therefore to grow that net inflows and it shows also that our premiums are increasing but our customers are staying, which obviously is a good signal that is sent to us. Now looking at the results of the life and health insurance, they are sharply higher by 11%, as you can see, especially driven by the technical results. There again, let me insist on the following. The rise of the technical facts or that is lower of a combined ratio in protection and health are driven by how we manage our claims in particular. The way we do it enables us to have a more adequate response to our policyholders who are also patients so that we can manage our own network of clinics or hospitals or call upon third parties on this topic and there again it reflects the prevention actions we adopt in terms of health for our customers. Now the release of margin on the contractual service has increased. And by the way, the barbarian world means that it is the outcome We can increase our profits in that particular business which is the savings one. So on the whole, the growth rate is high. When it comes to our life and health business. Moving on now to the recap of our earnings and results, the high 6% rise of our P&C, 11% health and life insurance, and we have no longer any results on the asset management since we sold AXA-IM to BNP Paribas last year, and the results of the holding are quite steady, so that... Our results, our underlying earnings are growing by 3%, but actually by 9%, excluding AXA-IM. You can see also 9% rise of our net income. So this is an excellent performance, therefore. Now looking at our earnings per share, it is increasing by 8%. that is 4% due to the higher underlying earnings on the one hand and what we call equity management plus 6% is the fact that we brought back our shares to compensate the IM loss of earnings and then our 3% our FX effect especially on the dollar and on the yen on the average level in compared to the previous half year. So 8% of earnings per share is at the top end of our target range of 6% to 8% that we had regarding that particular plan. Lastly, regarding the robustness of our balance sheet, our solvency ratio stands at 218%. It was at 224% at the end of December last year, but as you know, on the 1st of January, was expiring the grandfathering of our solvency to debt so mechanically we lost 10 points but compared to 215% resulting we gained 3% of solvency especially thanks to what we call the generation of normalized capital that is how much equity of solvency are we creating Half year after half year. So now we are plus 17 points which is a record which shows a very sound growth generating solvency which doesn't require a lot of additional equity. I will stop at this stage and give it back to Thomas for the conclusion.