This rebound could threaten the whole operation that are neutral with respect to the diversity of culturesApple body tag then approximately 29 millionWhat investors to remain on the defensiveLiberals and centrists are endlessly of gruntWhere desire widespread international contactsRisk of frustrationSome coincidences are shockAll the artists I've made have a mad freedomThere is perhaps the secret of his success her RosebudThe two parties finally agree on 3012 of voting rightsBattered in the stock market because of lingering questions about its potential for growth, its financial strength and more generally its strategy, AXA said it yesterday at its investor day: his model, which combines life insurance, insurance-damage, management of assets and multidistribution, takes the road. "There is no reason to change", says CEO, Henri de Castries.
However, current crisis environment - combining low interest rates, volatility in the markets, regulatory uncertainty and economic growth in Bern in mature countries - is for the less complex for insurers. Without calling into question the trends of bottom-"always more goods to people in need of protection, and the lengthening of the life Fund", summarizes AXA-, this implies some "adjustments". This is precisely what to address the group in its new strategic plan by 2015, including the first quantified objectives were unveiled yesterday.
Specifically, AXA promised investors three things. A growth, but "not at any price." The idea is to allocate capital "where are there at the time of growth and margins", to very clearly, "accelerate the creation of long-term value." Two, a better generation of cash. The displayed objective is to ensure a dividend representing 40 to 50 of the current result, but to identify, and more, "EUR 1 billion of cash available to do something else" (such as strengthening the capital or finance the expansion). Three, a relief of operational profitability, eroded in damages by a higher loss experience in life by the low rate environment. And to achieve this, the Group undertakes on the realization of 1.5 billion euros in savings by 2015, including 500 million in life insurance and $ 1 billion in damages.
"No sacred cows".
The sinews of war, it is this that AXA calls "a more selective growth and capital management". In short, it comes to more than cash from operational entities (2.8 billion euro of dividends must be reassembled to AXA SA this year); "to allocate capital more effectively in the emerging markets as well as specific activities such as the health and welfare" and pursue the "active management" of the same capital, Henri de Castries, who recalled "that there is no cow sacred in the group. Evidenced by the recent transfer of the bulk of the British life activity.
Insurance-damages, the Group intends to take advantage of its new global organization to strengthen the weight of the direct and market growth, the idea being that they represent "50 of future growth". Rated profitability, the objective is to achieve a current combined ratio (grim and costs management reported to the premiums for the year) of 100 in 2011, and more generally understood between 96 and 100. The continuation of the increase in prices (3 in 2011) will have to contribute. "It's to stop losing money on the current subscription", says Denis Duverne, the Associate Director-General. So far, the profitability was indeed made by revivals of reserves on the previous year. About 1 billion euros of planned economies, they will be the translation of a decrease in the ratio of general expenses 4 points. To achieve this, are evoked the establishment of shared platforms, mutations in distribution, and the gains of technological developments.
Life insurance, the Group wants to increase the share of the products in units of account (currently 18) of 20 points by 2015 in continental Europe. The 500 million of savings before tax will have a drop of 5 points of operating ratio.
Still a bad news and a question mark. The first deals with the announcement of a charge of EUR 100 million in the second half of 2010 due to a correction of the assumptions of redemption on the "variable annuities" in the United States. The second concerns the performance of asset management, the net collection strongly negative. The group said see signs of improvement, and ensure that the subject would gradually "be settled".
