AXA : Integrated Report Annual Results(02/22/2024)

U n l o c k t h e F u t u r e

F o r e w o r d

Taking action

p. 6 "The future should not be a risk" Message from Thomas Buberl

p. 12 "Unlock the Future is not a revolution but an ambitious evolution"

Interview with Frédéric de Courtois

Finding solutions

p. 16 Driving our growth

p. 22 Scaling up our excellence

p. 28 Expanding our commitment to society p. 34 Pioneering social innovation

Our impact in 2023

p. 44 Governance p. 48 Enablers p. 54 Value creation p. 56 Performance

"We are entering

a new phase of accelerating our strategy."

A n t o i n e G o s s e t - G r a i n v i l l e , C h a i r m a n o f A X A G r o u p ' s

B o a r d o f D i r e c t o r s

2023 was the year AXA Group completed its Driving Progress strategic plan, having reached or surpassed every target. It was also the end of an intense transformation phase for the Group. In just a few years, we adapted our business remarkably on property and casualty, health and protection. We also reinforced our global leadership in major corporate risks with AXA XL, all the while remaining focused on our main markets in Western Europe, Japan and Hong Kong, as well as emerging countries, particularly in Africa and Southeast Asia.

These last few years have been marked by a very sharp increase in the overall level of risks. In this difficult context, our improved performance confirms that we have made the right choices. Our results and the value we created and shared with all our stakeholders provide further proof. Above all, our financial solidity enables us

to both withstand crises and manage projects that are foundational to our future. Today, AXA is well placed to keep protecting the most vulnerable while bringing innovative responses to new risks and offering a long-term plan for tackling climate change. This is what our "Why should the future be a risk?" global brand campaign is all about.

In 2024, we are entering a new phase of accelerating our strategy with a spirit of sustainable, profitable growth. For the last 18 months, the Board of Directors has largely helped develop this new plan through ongoing dialogue with Thomas Buberl and his Executive Committee. Human capital, AXA's main asset, is considered a top priority. The Group's solid governance is another strength for its future development. Finally, the decision to invest heavily in new technologies and take full advantage of artificial intelligence developments will further drive the success of our new strategic plan.

I hope you enjoy reading this new edition of our integrated report, which takes a look back at AXA's major actions in 2023 and shows the direction set by the Group for 2026 and beyond.

Taking

The world is changing and new risks are emerging.

As an insurer, action we have a

responsibility to do more. We must try harder. The journey may be long, but we're already taking action. Everyone has the right to be hopeful about the future.

U n l o c k t h e F u t u r e

"The future should not be a risk. "

T h o m a s B u b e r l ,

C h i e f E x e c u t i v e O f f i c e r o f A X A G r o u p

M e s s a g e f r o m T h o m a s B u b e r l

Protecting people everywhere

2023 served as a good illustration of the current global polycrisis. In addition to major natural disasters (cyclones, earthquakes, etc.), we're facing many climate events that are smaller

in scale but increasingly frequent: floods, forest fires, winter storms, droughts, and so on. The worldwide cost to our sector of these undeniable consequences of global warming is an estimated $250 billion annually.1

In addition, the emergence of artificial intelligence (AI) in our processes, combined with the generalization of digital exchanges at a global scale, is driving cyber risks higher up the rankings of global concerns. The arrival of ChatGPT has considerably accelerated the use of artificial intelligence and, at the same time, the urgent need to regulate technological progress and protect users.

Finally, in a context of geopolitical conflicts and persistent inflation, macroeconomic instability is continuing to exacerbate inequality. Our economies are constantly changing, along with the balance in our societies.

So, the notion of risk is taking on a new dimension. Given all these transformations and challenges, insurers are at a crossroads. Our role is to anticipate and analyze the changes to create the best protection solutions for our customers' constantly evolving needs. This context is also shifting the nature of our business: increasingly, our role will be to not only manage claims but help our customers prevent them and adapt to a world that's undergoing radical transformation. Finally, our role is to look ahead to the future, to finance and insure the new technologies that will make it possible.

We're in this business convinced that the future should not be a risk. This conviction features in our latest brand campaign and is at the heart of our Unlock the Future 2024-2026 strategic plan. Transformed, more solid and more committed, AXA has the means and the ambition to protect people everywhere.

U n l o c k t h e F u t u r e

1. successful transformation

Driving Progress 2023:

successful delivery of key financial targets

Financial indicators

Very early on, AXA was aware of these critical challenges for the insurance sector. In fact, they have guided our deep transformation since 2016. By refocusing our business on technical risks like property and casualty (P&C), health and protection, by focusing our strengths on strategic markets in which we're leaders, and by committing to the climate and inclusion, we've fully asserted our role as a responsible member of society.

We've exceeded the key financial targets in our plan, whether growth in earnings per share, amount of increased cashflow or solvency ratio (see opposite page). We owe this success to the unfailing commitment of our employees and agents.

This positive outcome is also due to strategic decisions - like the 2023 acquisition of Laya

Achievements

2023 saw the successful completion of our Driving Progress 2023 strategic plan, which had five priorities. Despite an uncertain context, our results prove that we've made the right choices.

"We're exactly where we want to be to face the challenges of tomorrow."

Healthcare in Ireland or Crédit Mutuel's Spanish subsidiary - that have bolstered our positions in key European segments. Further, we've invested heavily in technology to boost our capacity for innovation. Finally, we've reasserted our aim of "protecting what matters" with the "Why should the future be a risk?" brand campaign and the We Care health scheme for AXA employees.

This transformation is the foundation on which we'll keep building the AXA of the future, staying true to the values that have driven us for around 40 years. With a simpler organization, a more balanced business model and improved profitability, AXA is now more agile and resilient than ever. We're exactly where we want to be to face the challenges of tomorrow.

Simplified and focused on

markets with leading positions

22

non-core disposals, market leader

in our core businesses

Repositioned on technical

risks with a successful AXA XL

transformation

€1.9 Bn

in AXA XL's underlying earnings

in 2023

Significantly reduced

market risk

-40%

exposure to

financial risks 2

Cash focused

From 58 % to 79 % cash remittance ratio

from 2016 to 2023

U n l o c k t h e F u t u r e

Unlock the Future

2024 - 2026

Excellence

M e s s a g e f r o m T h o m a s B u b e r l

"Protecting what matters means enabling people everywhere to look to the future with confidence. "

Commitment

Our 2024-2026 strategic plan will enable us to accelerate and build on these achievements. We want to be the most attractive insurer for our customers, markets and talents. That's why we intend to build on three pillars.

Acceleration

Our first pillar will be accelerated growth, with a 6% to 8% annual increase in underlying earnings per share over the next three years, thanks to our focus on very profitable markets. We still have opportunities to seize in mid-market P&C, group protection and health, and new trends like cybersecurity and the energy transition. The development of our distribution networks will also contribute to our growth.

Our second pillar will be reinforced technical and operational excellence. At the end of 2023, we created a Group Underwriting Office, which enables us to be more agile in our responses to new risks, particularly cyber and climate threats, as well as standardize our major entities' underwriting best practices across the Group. We'll also continue making major investments in data and new technologies, especially artificial intelligence. This plays a key role in the new plan: we plan to significantly increase our use of AI to provide even better support to our customers and facilitate day-to-day work for our employees.

"We want to be the most attractive insurer for

our customers, markets

and talents. "

Commitment is the third pillar of our strategy. AXA will continue to play a responsible

role in society, showing how insurance can contribute to human progress. That means pursuing our commitments to the climate transition by promoting risk prevention, helping our customers adapt their homes, companies and behaviors, accelerating our investments, and insuring key players in the transition.

"Protecting what matters" means enabling people everywhere to look to the future with confidence. So, inclusive insurance will be a major part of our plan, building on the experience we've acquired in emerging markets. Over the coming months, we'll be launching solutions in several European countries for customers who all too often are unaware of or unable to find products and services suited to their needs.

At the heart of these three pillars are people, because AXA's women and men are our greatest strength. Actively innovating in the workplace to boost our employees' commitment and well-being, AXA will keep moving forward through training, employee development and inclusion, which are the makings of our strong corporate culture.

I'm very proud of this new plan, which should enable AXA to reach its full potential while continuing to act for progress and for society.

O u r 2 0 2 4 - 2 0 2 6 s t r a t e g i c p l a n

I n t e r v i e w w i t h F r é d é r i c d e C o u r t o i s

Unlock

theFuture

"Unlock the Future is not a revolution but an ambitious evolution."

What methodology has AXA used to build and implement this plan?

AXA is a decentralized Group but we can create economies of scale: our whole must be greater than the sum of our parts. Unlock the Future has been designed with this in mind. The main areas for progress have been identified directly by the entities, who know their markets and customer needs inside out. Our communities of experts have moved forward on key topics like cybersecurity, technological transformation and distribution. To implement this

Driving growth

• Promoting structural
  growth
• Expanding selectively
• Growing distribution

Scaling up excellence

• • Boosting technical
    capabilities
• Enhancing operational
  excellence (new

technologies and AI)

Expanding AXA's commitment to society

• Extending our inclusive
• • 
    insurance offers
  • Pursuing our

commitments for the

F r é d é r i c d e C o u r t o i s ,

A X A G r o u p D e p u t y C h i e f E x e c u t i v e O f f i c e r , i n c h a r g e o f F i n a n c e ,

O p e r a t i o n s , S t r a t e g y , R i s k , U n d e r w r i t i n g

What observations have influenced the new strategic plan?

strategic plan, AXA entities will be in the frontline working together with Group specialists, who will lead cross-disciplinary projects with the support of centers of expertise on topics such as cybersecurity.

How will you measure the success of Unlock the Future?

Our plan is organized around three financial targets complemented by an ambitious profit-sharing policy

Care & Dare

Attracting and retaining talents, upskilling our teams

and fostering our culture of excellence

Strong capital management

Disciplined execution and reinvestment

for future growth

The success of Driving Progress 2023 marks the completion of our deep transformation since 2016. Unlock the Future is not a revolution but an ambitious evolution: it's a plan to use our strengths to tackle an uncertain context and consider every opportunity. It's aimed at unleashing our energy, widely applying our knowledge, and pushing the boundaries of our expertise to new risks and segments of the population. So, it's an investment plan: in technology, but also employee training and network development.

for all our stakeholders (see opposite page). But our success will depend above all on our ability to protect our customers from evolving risks, as well as our social responsibility. With this plan, we want to reinvent protection to offer our customers solid coverage in the face of new risks, while helping them adapt to the global polycrisis.

Financial targets

Underlying earnings per share

+6% to 8%

annually between 2023 and 2026

Underlying return on equity

14% to 16%

from 2024 to 2026

Cumulative cash remittance

>€21Bn

from 2024 to 2026

New capital

management policy

75%

total payout ratio1

→

60%

dividends

and

15%

share buy-backs2

with dividend per share at least equal to previous year

What are the main strategic pillars of

Unlock the Future?

Our new strategy is based on three pillars: accelerating our growth by attracting new customers and reinforcing our distribution networks; strengthening our technical and operational excellence; and expanding our responsible role in society through our inclusive insurance and climate commitments. Several levers will be essential for supporting our strategy. New technologies, artificial intelligence and data analysis will enable us to gain in efficiency and improve our performance in pricing, claims management, risk selection and developing new prevention services. Our employees' commitment will also be essential, which is why we've launched Care & Dare, an ambitious human resources policy.

U n l o c k t h e F u t u r e

$ 1,867Bn

The potential global protection gap (difference between actual and insured losses) by 2025, +35% compared to 2020

Source: "Insurance in 2025 and beyond," PwC, 2022

F i n d i n g s o l u t i o n s

Driving

our

growth

Insurers are facing new challenges: with new threats emerging and others growing, it's more important than ever to protect people everywhere. Through its new strategic plan, Unlock the Future, AXA is aiming to meet the ever- changing needs of society and help policyholders prevent and adapt to this new polycrisis context. Strengthening our leadership in P&C commercial lines, continuing to expand our product and service offering for individual health, protection and employee benefits, and developing our distribution networks: these efforts will drive our growth in the years to come.

U n l o c k t h e F u t u r e

D r i v i n g o u r g r o w t h

"I want AXA France to become the leading insurer for all French protection needs."

In a society that's seeing middle-class incomes falling behind the cost of living, our inclusive insurance offers tailored solutions to people with little or no coverage.

How can you protect the population facing the challenges of climate change?

How can you preserve long- term profitability in a highly

G u i l l a u m e B o r i e , C h i e f E x e c u t i v e O f f i c e r o f

A X A F r a n c e

You became CEO of AXA France after four years leading its distribution networks. What are the company's strengths?

Our strengths are committed, expert teams, solid performance that provides long-term continuity in every area of insurance,

and a strong local footprint with unique distribution networks. Our multi-specialist local model enables us to offer insurance, risk management and preventative solutions to all our customers, whether individuals, professionals or companies, in line with their realities and needs.

What are the growth drivers in the mature French market?

We want to do even better when it comes to satisfying our customers' expectations in every sector. That means continually improving their experience to make AXA their insurer of choice. We'll also target growth opportunities in high- potential segments, focusing our expertise on ever-growing protection needs. I'm thinking, for example, of the challenges of climate change and the consequences of social fragmentation.

In 2023, AXA France paid out €450 million to customers hit by climate events. Climate risk is omnipresent in our business. We're convinced it can and should remain insurable, which implies increasingly ambitious risk prevention and stronger commitments to helping society adapt. That means deepening and reinventing our public-private partnerships, as we've done with the French natural disaster compensation scheme, which is one of a kind worldwide.

What role will distribution, especially the agent network, play in your growth strategy?

We're going to invest heavily in expanding our distribution networks, ensuring they're better equipped and increasing their expertise, with new technologies like artificial intelligence. The aim is simple: to lighten their administrative load and free up time for high- value sales work, as well as enable them to understand and meet our customers' needs better at different stages of their lives.

uncertain context?

Profitability is the key to our resilience and, above all, the support we can bring to our clients and society in the long run. We pay special attention to this, using our creativity in a difficult context. The solutions exist. In car insurance, for example, given the rising cost of spare parts, we're promoting our network of partner garages and recommending that customers choose recycled parts, which are now used in 16% of repairs, with our Alpha Scale platform. In the next three years, I want AXA France to become the leading insurer for all French protection needs - one that can meet social and climate challenges through local, preventative and inclusive solutions.

€450M

in claims paid to our customers affected by climate-related events in 2023