Financial Data and Key Metrics Changes - The company reported a 5% growth in revenue, reaching €104 billion, with all geographies contributing positively [6][7] - Underlying earnings per share increased by 5%, leading to a 6% adjusted earnings per share growth, with a proposed 7% increase in dividend to €1.43 per share [6][9] - Solvency improved by 5 percentage points, now at 198%, with a shift away from relying on equivalents [12][38] Business Line Data and Key Metrics Changes - AXA XL experienced a 10% growth in premiums, driven by strong price increases, particularly in the U.S. liability and excess casualty lines [13][55] - The P&C business showed solid performance with a combined ratio down to 91%, reflecting improved profitability [45][61] - Life & Savings business remained resilient despite a slight decrease, attributed to low interest rates and transformation efforts [64][66] Market Data and Key Metrics Changes - Growth in France was solid at 4%, driven by Health and Life & Savings, while P&C remained stable [43][44] - Europe also grew by 4%, with strong contributions from the U.K. and Germany [47][48] - Asia and international markets showed significant growth, particularly in Turkey and Mexico, with P&C driven by high pricing components [50][51] Company Strategy and Development Direction - The company is focused on increasing profitability and simplifying operations, with a clear strategy to reduce complexity in its geographical footprint [31][33] - The integration of AXA XL is progressing well, with a shift towards a new phase of acceleration in profitability [18][20] - The company aims to maintain a strong balance sheet, transitioning from financial risk to technical risk [32][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the adequacy of reserves and the ability to achieve €1.2 billion in underlying earnings for 2020, despite challenges [59][60] - The company remains committed to long-term growth in China, viewing demographic trends as favorable [30] - Management highlighted the importance of customer experience, with a Net Promoter Score of 75% indicating strong customer satisfaction [34] Other Important Information - The company has successfully reduced its temporary increased leverage from 32% to 29% [11] - AXA's cash at the holding level increased from €1.7 billion to €3 billion, with a significant reduction in gross financial debt [81][84] - The company is actively managing its exposure to natural catastrophes and large losses through strategic underwriting and reinsurance [58][59] Q&A Session Summary Question: Commentary on casualty reserves and specific factors considered - Management discussed the importance of litigation costs and systemic risks in setting reserves, noting that 98% of claims are settled before court [90][92] Question: Comfort level with exposure movements in casualty and financial lines - Management clarified that growth in casualty and financial lines is being managed carefully, with a shift in underwriting focus to safer segments [95] Question: Adequacy of reserve buffer at XL - Management confirmed that the €1.2 billion target does not include any release of provisions, indicating confidence in the existing reserve levels [97]
AXA(AXAHY) - 2019 Q4 - Earnings Call Transcript