AXA has hosted 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.”
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)
Source : AXA
