PARIS, June 1, 2011 /PRNewswire/ --
Main financial objectives for 2015:
- Underlying earnings per share CAGR[1] of 10%
- Cumulative Euro 24 billion of
Group operating Free Cash Flows from 2011 to 2015, of which
Euro 11 billion in Life &
Savings
- 15% adjusted return on equity in 2015
- 25% debt gearing by 2015
- Euro 1.5 billion pre-tax cost
savings in mature markets by 2015
AXA is hosting today an investor conference in Paris, during which the management team will
present its strategic plan "Ambition AXA", focusing on financial
and operational priorities for each of its business lines, Life
& Savings, Property & Casualty, and Asset Management.
"The long term potential of Insurance and Asset Management is
more promising than ever, addressing global needs for risk and
life-style protection, underpinned by long term demographic trends
and the rapid advent of emerging economies", said Henri de
Castries, Chairman and CEO of AXA.
"Through Ambition AXA, our new strategic plan for the next 5 years,
we reaffirm today our objective to become the industry's preferred
company, building on customer centricity and a culture of trust and
achievement for our teams."
"Ambition AXA is about three main priorities: Selectivity,
Acceleration and Efficiency.
Selectivity, mainly in mature markets where we will concentrate
our efforts on actively developing higher margin offers with lower
capital consumption which address our customers' needs. This should
allow us to generate sustainable growth of earnings and operational
Free Cash Flows.
Acceleration, mainly in high growth markets where the Group
already benefits from a strong footprint worldwide which has been
reasserted by the recent AXA APH transaction, and where we want to
grow further and allocate a larger share of our capital. This will
allow us to double our size and more than double our profitability
organically by 2015 and to continue to attract leading partners in
insurance distribution.
Efficiency everywhere with a specific focus on mature markets,
where we expect to deliver Euro 1.5
billion of cost savings by 2015 whilst continuing to improve
customers' experience with AXA.
We will fulfil our Ambition by building on our key
differentiating assets, such as our brand, our unique distribution
mix, our capital management agility and our deep international
talent pool. This is our Ambition, and we are committed to deliver
on it."
Specific financial objectives of the Ambition AXA plan by
2015
Group wide Ambition:
- Underlying EPS CAGR of 10% by 2015
- Cumulative Euro 24 billion of
Group operating Free Cash Flows from 2011 to 2015
- 15% adjusted return on equity in 2015
- 25% debt gearing by 2015
- Euro 1.5 billion pre-tax cost
savings in mature markets by 2015 and Euro
0.8 billion by 2013.
Life & Savings Ambition
In Life & Savings, the objective is to actively grow the
Protection & Health activity, to reshape the traditional
Savings business by increasing the Unit-Linked share, and to
extract more value from what is today one of the largest life book
in mature markets whilst accelerating the development in high
growth markets.
This will translate into the following objectives:
- Cumulative Euro 11 billion of
operating Free Cash Flows from 2011 to 2015 and Euro 6 billion from 2011 to 2013
- NBV margin above 28% in 2015
- IRR above 15% in 2015
- Reduction of the cost income ratio by 5 pts by 2015, notably
through Euro 0.5 billion pre-tax cost
savings in mature markets
Property & Casualty Ambition:
In Property & Casualty, the objective is to improve
profitability through technical excellence and efficiency, mostly
in mature markets, to actively grow the Direct business and to
accelerate the development in high growth markets.
This will translate into the following objectives:
- All year combined ratio below 96% in 2015
- Current year combined ratio at 100% in 2011 and below 97% in
2015
- Reduction of the enlarged expense ratio (including claims
handling costs) by 4 pts by 2015, notably through Euro 1.0 billion pre-tax cost savings in mature
markets.
Asset management:
In Asset Management, the objective is to seize the rebound
potential of our two asset managers, AXA
IM and AllianceBernstein.
This will translate into the following objectives:
- Turnaround of net flows in 2011
- 4-5% net new money per year over 2012-2015 (as a percentage of
average Assets under Management
Today's investor presentation will start at 8:30am CET and end at 6:30pm CET. Live webcast and support documents
will be available from 8:30am CET on
http://www.axa.com/en/investor/conferences/investordays/
On demand webcast will be available from June 2, 2011.
About the AXA Group
The AXA Group is a worldwide leader in insurance and asset
management, with 214,000 employees serving 95 million clients. In
2010, IFRS revenues amounted to Euro 91
billion and IFRS underlying earnings to Euro 3.9 billion. AXA had Euro 1,104 billion in assets under management as
of December 31, 2010.
The AXA ordinary share is listed on compartment A of Euronext
Paris under the ticker symbol CS (ISN FR 0000120628 - Bloomberg: CS
FP - Reuters: AXAF.PA). AXA's American Depository Shares are also
quoted on the OTC QX platform under the ticker symbol AXAHY.
The AXA Group is included in the main international SRI indexes,
such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.
This press release is available on the AXA Group website
http://www.axa.com
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING
FORWARD-LOOKING STATEMENTS
Certain statements contained herein are forward-looking
statements including, but not limited to, statements that are
predictions of or indicate future events, trends, plans or
objectives. Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown
risks and uncertainties. Please refer to the section "Cautionary
statements" in page 2 of AXA's Document de Reference for the year
ended December 31, 2010, for a
description of certain important factors, risks and uncertainties
that may affect AXA's business. 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.
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[1] Compound annual growth rate