After the 2018 “AXA Learning Games” dedicated to learning practices and to support AXA’s employees to understand the changing consumer behaviors, a global learning competition,
Leadership Network members into dedicated Leadership programs. For the rest of AXA learning employees, 574 digital modules are off ered on the topics of Leadership, Management and Personal excellence (40,000 short courses were followed in 2019 and over 28,000 were completed).
To tackle tomorrow’s challenges, AXA aims at setting and enriching an environment and culture, which values diversity and inclusion, for all employees. AXA’s workforce should reflect the diversity of the markets in which AXA operates, and the middle and top management play a central role in reaching those objectives. Indeed, AXA Group is convinced that diversity and inclusion management are key levers to breed talent and innovation within the organization and to remain a top player of the market.
As diversity and inclusion are recognized as important drivers to breed talent and innovation, attract and retain the best talents and remain the preferred employer of the market, AXA promotes diversity through its recruitment, learning and development and talent management processes. AXA’s leaders act as advocates for those commitments and are committed to support the Group to (i) reach gender balance across all levels of the organization,
At the end of 2019, women made up over 54% of AXA’s sales and non-sales workforce and held 31% (+2 points compared to 2018)
The priority is to reach gender parity by 2023 among Top Senior
Leadership Network in early 2019, women represented 30% of this population. By the end of 2019, we had reached 32%. AXA
Global Leadership Network – GLN). Management Committee and Partners members were involved in a sponsorship initiative launched until December 2019 targeting 30 talents: 23 women (among them 83% are in operational roles) and 7 men
(among them 86% are in operational roles). This sponsorship initiative is a component of two diff erent programs feeding the pipeline of future leaders: • launched in 2014, the “Group Sponsorship Tandem”
program (GSTP) was designed to develop female talent across the Group. In 2019, we ran the 5th wave of this program, involving 16 talented women, each one being sponsored by a Group Management Committee or
Partners Group member. Among the participants to the five successive waves of the GSTP, 35% have a GLN position,
AXA is committed to reach gender parity amongst senior executives by the end of 2023.
Management Committee and approximately thirty other senior executives from across the Group. Its principal role is to assist the Chief Executive Off icer and the Management Committee in the definition and implementation of key strategic initiatives.
The GLN was launched in 2019, replacing the network of GSEs
Executive Committees of AXA’s largest markets, growth engines and major transversal entities, as well as senior leaders from the corporate functions, markets and some country CEOs. This structure has been built to leverage the Group of Top Senior
Executives who are critical to drive AXA’s transformation over the coming years.
For more information on AXA’s D&I policy in top management, please refer to the “Reaching gender balance across the organization” page on www.axa.com.
As a responsible company, AXA wants to support civil society and Non-Governmental Organizations. By partnering with associations and external organizations, the Group contributes to a better society and learns from others to educate and to improve the inclusion initiatives that are put in place within the Company.
In March 2019, as a result of AXA employees’ engagement to the #HeForShe campaign launched on International Women’s
Finally, AXA continues reinforcing its partnership with LGBT+ organizations to raise awareness across the Group and extend its network in those communities.
Headcount of salaried workforce with open-ended contract 115,070 emp. -3.9% 119,780 emp. 111,588 emp.
Headcount of salaried non-sales force 98,883 emp. -3.9% 102,843 emp. 95,447 emp.
Average age of salaried workforce 40.5 yrs - 0.7% 40.8 yrs 40.9 yrs
Average FTE of salaried workforce 110,701.9 ft e -4.4% 115,768.5 ft e 106,928.6 ft e
■ All Executives 3,133.2 ft e 3,657.6 ft e 3,203.2 ft e
Average FTE of salaried sales force 16,143.3 ft e 16,634.1 ft e 15,818.9 ft e
■ Non salaried temporary staff and contingent workers 7,594.0 ft e 5,768.1 ft e 5,784.9 ft e
Net headcount evolution (entries versus departures) -8,369 emp. 707 emp. -2,176 emp.
■ Number of fixed-term contracts transformed into open-ended contracts 1,882 emp. 1,915 emp. 1,637 emp.
■ Number of entries following mergers and acquisitions 53 emp. 32 emp. 198 emp.
■ Number of economic/collective layoff s 1,213 emp. 1,352 emp. 1,894 emp.
■ Number of departures due to external transfers (b) 7,636 emp. 129 emp. 1,252 emp.
■ Number of other departures 183 emp. 193 emp. 168 emp.
Net headcount evolution (entries versus departures) -1,478 emp. 473 emp. -447 emp.
■ Number of external recruitments (including re-hires) 3,567 emp. 4,265 emp. 3,336 emp.
■ Number of entries following mergers and acquisitions 8 emp. 5 emp. 34 emp.
■ Number of economic/collective layoff s 117 emp. 122 emp. 82 emp.
■ Number of departures due to external transfers (b) 1224 emp. 77 emp. 321 emp.
■ Number of other departures 31 emp. 19 emp. 26 emp.
■ Number of external recruitments 4,842 emp. 5,531 emp. 5,337 emp.
■ Number of fixed-term contracts ended 3,814 emp. 3,319 emp. 3,509 emp.
Net headcount evolution of salaried sales force (entries versus departures) 597 emp. 376 emp. 172 emp.
■ Number of fixed-term contracts ended 329 emp. 209 emp. 163 emp.
(a) AXA Tianping (2,988 salaried employees with open-ended contract), AXA Next (38 salaried employees with open-ended contract) and Kamet (352 salaried employees with open-ended contract) businesses did not report the movement indicators.
■ Other reasons (pre/retirements and miscellaneous) 1.5 % 1.9 % 1.8 %
Average number of working days 226.7 days -1.1% 229.1 days 227.7 days
■ Proportion of part-time salaried non-sales force 10.2 % 10.0 % 11.1 %
■ Proportion of part-time salaried sales force 4.4 % 3.1 % 2.7 %
(1) AXA Tianping (2,988 salaried employees with open-ended contract), AXA Next (38 salaried employees with open-ended contract) and Kamet (352 salaried employees with open-ended contract) businesses did not report the labor indicators.
Absenteeism rate of salaried workforce 4.7 % +0.0pt 4.7 % 4.7 %
■ Proportion of absences due to sickness 70.3 % 69.7 % 69.9 %
■ Proportion of absences due to work related accidents 2.0 % 1.9 % 2.0 %
Absenteeism rate of salaried non-sales force 4.9 % 4.9 % 4.9 %
■ Proportion of absences due to sickness 69.8 % 69.7 % 69.5 %
■ Proportion of absences due to work related accidents 2.8 % 3.4 % 2.9 %
■ Proportion of fixed pay (related to wages) 84.7 % 83.1 % 83.1 %
(a) As per the definition of compensation, it includes the individual fixed pay, the individual variable pay, employer social contribution and collective profit sharing (if any) and excludes equity based compensation (stocks options, performance shares, AXA Miles). On a constant exchange rate basis, total compensation cost increased by 11.2%.
Percentage of salaried workforce having received at least one training course 100.0 % +2.2pts 97.8 % 84.2 %
“Warming potential” of AXA’s investments is to be contained below 1.5°C by 2050, a green investments target doubled to €24 billion by 2023, launching the “Transition Bonds” asset class, and a total exit from the coal industry. This is developed climate-strategy-2019) and below; ■ a new CO
(1) Related to the recommendations from the TaskForce on Climate-related Financial Disclosures: www.fsb-tcfd.org.
(2) No information, document or item contained in AXA’s Climate Report/TCFD 2020, or available on the Company’s website in connection with the Climate Report/TCFD 2020, is incorporated by reference in this Annual Report.
This section describes our Responsible Investment (RI) initiatives in line with the voluntary disclosure requirements related to the Taskforce on Climate-related Financial Disclosures (TCFD, which focuses on climate risks) and the mandatory disclosure requirements set out in the French decree implementing
Article 173 VI of Law No. 2015-992 of August 17, 2015, on the energy transition for green growth (which focuses more broadly on ESG). This is why the text below extends beyond purely environmental factors. Furthermore, this text is an overview of our more detailed “2020 Climate Risk Report” (2), to be published on www.axa.com in 2Q 2020.
Governance (ESG) considerations into investment processes, including ownership practices. AXA’s conviction is that ESG
integration may impact long-term investment performance by offering an enhanced understanding of risk drivers. This conviction is derived from academic research and empirical market data. It is also a way to strive for alignment between our investments and broader CR commitments. AXA developed a comprehensive RI strategy covering the Group’s General Account assets and is gradually extending it to its Unit-Linked investments.
RIC reports to the Group Investment Committee, chaired by the Group Chief Financial Officer. In addition, the “ESG
Footprint Committee” reviews risks posed by companies or sectors presenting a low ESG performance and/or serious and persistent controversies. AXA’s RI policy is supported by the RI
Center of Expertise, a transversal working group from AXA’s local investment teams interacting with the CR network. In addition, as mentioned in Section 7.1 “Social Information”, the Board of
The AXA Group as well as its in-house Asset Management entity AXA IM are signatories of the UN-backed principles for
AXA Group’s investment community and is also open to all AXA
“impact-type” metrics are developed to help monitor ESG risks, identify areas of improvement, set targets or guide shareholder engagement. This analysis process covers AXA’s General Account assets (Sovereign and corporate bonds, equity, property, infrastructure and Commercial Real Estate debt): ■ for corporate issuers (equity and debt): the ESG assessment focuses on the most material and impactful key ESG issues at sector level, taking into account sector/peer group performance and also factoring an analysis of material controversies; ■ for sovereign issuers: AXA’s ESG scoring uses public data sources such as the World Bank, the OECD, and the UN (e.g.
COP21 Paris Agreement into quantitative investment targets since 2016. In 2019, AXA deepened its work based on methodologies provided by external climate risk experts (Carbon Delta, Beyond
Ratings, Trucost), while also using internal “NatCat” models to cover our Real Assets investments. This work covers two broad areas: “transition risks” and “physical risks”, as defined by the
Modelling the extent to which investors may be impacted by shift ing market and regulatory trends related to the transition to a low-carbon economy is termed “transition risk”. It can be measured in financial risk terms (measured in Euros) or purely
This is derived from the carbon intensity alignment of each company relative to the sectoral carbon intensity target needed to reach global climate target. This produces a
models – generally only used to assess the impact of natural catastrophes on insured exposure – combining stochastic events
(windstorms, floods, hurricanes) and a geolocalised portfolio of real assets. Specific “destruction rates”, which factor location, building/infrastructure type and construction materials are then used to determine potential damage rates and derive a loss for each and every building/infrastructure.
The analysis of “transition” and “physical” risks is further developed in our 2020 Climate/TCFD report.
AXA decided in November 2019 to align its investments with the Paris Agreement, thereby committing to achieve a 1.5°C
(corporates and sovereign) have a 3.1°C “warming potential”. This is below the market reference of 3.7°C but nonetheless shows that investors are operating in a carbon-intensive economy that is not aligned with the Paris Accord. A vast energy transition eff ort is required. All companies must evolve, and it is incumbent on investors to identify and support relevant transition strategies.
Zero Asset Owner Alliance”, whose objective is aligned with this transition imperative (see below).
Carbon emissions will require significant curbing in order to reduce the risk of climate change, which may place business constraints on carbon-intensive industries, leaving some assets
Coal-based power generation is seen as the most risky industry in terms of such “asset stranding”.
and/or over 10 GW of coal-based power installed capacity; ■ mining companies with coal share of revenues over 30% and/
or with annual coal production over 20 million tons and/or developing new coal mines; ■ certain coal industry partners, defined as manufacturers (e.g.
equipment suppliers) and infrastructure players (e.g. port terminals, dedicated railways) developing significant new coal assets; ■ in addition to the above restrictions, AXA is now committed to a long-term “exit” strategy reducing exposure to the thermal coal industry to zero by 2030 in the European Union and OECD
countries, and by 2040 in the rest of the world, as suggested by the main climate scenarios (such as the IEA “Beyond 2°C”
scenario). This approach is applied both to our investments and underwriting (see below) activity.
In addition to “temperature” targets and divestments, green investments encourage various sectors to ramp up their climate strategy. In November 2019, having almost achieved previous target, AXA decided to commit to invest €24 billion in green investments by 2023. Green investments are defined as: green bonds, infrastructure debt & equity, impact investments, real estate, and commercial real estate loans. In December 2019,
AXA and the IFC, a member of the World Bank Group focused on the private sector, launched a US$500 million partnership in 2017, supporting an infrastructure fund that will notably finance green infrastructures in emerging countries, including renewable energy, water, green transport and telecoms. At the end of 2019, mandatory loans amount to US$390 million, of which US$120 million has already been financed. Coal and oilsands related projects are explicitly excluded.
“transition bonds” in 2019. In November 2019, AXA announced the launch of a first of its kind “transition bond” in partnership with Crédit Agricole CIB. AXA entirely financed a 100 million euro bond in a private placement where the proceeds will be used to refinance existing commercial loans made by Credit Agricole. In this transaction, the use of proceeds from the bond will be used to finance electricity production shift ing from coal to gas, marine
Biodiversity loss endangers “ecosystemic services”, which threatens both society and businesses that depend on them, and in turn investors and insurers that rely on a well-functioning economy. Biodiversity challenge is a natural extension of AXA’s climate eff orts. Indeed, climate change is severely compounding the destruction of ecosystems all around the world, adding pressures related to drought, ocean acidification, more intense natural catastrophes, etc. AXA’s biodiversity strategy currently includes the following developments: ■ in May 2019, during the G7 Ministerial meetings, AXA has presented with the WWF the report “Into the Wild – Integrating nature into investment strategies” designed to raise awareness on biodiversity loss and its economic and financial impacts. It presents several recommendations, including the launch of a
“TCFD-like” broad-based taskforce to promote the protection and restoration of biodiversity. The report also called on the creation of biodiversity risk metrics adapted to investors, as well as several other developments (see www.axa.com/en/
newsroom/news/how-to-support-the-transition-towards-theprotection -of-biodiversity); ■ AXA launched its third “Impact Investment” fund during the
This Impact Fund will invest between €150 million and €200 million of AXA capital to fund credible solutions that deliver measurable positive outcomes; ■ the AXA Research Fund actively supports academic research on biodiversity risks (see Section 7.4 “Inclusive Insurance”); ■ AXA XL actively contributes to the Ocean Risk and Resilience
Insurance-related ESG risks and opportunities also benefit from a specific governance, notably the Group Underwriting Committee, which defines underwriting restrictions. The Group CR team provides a bridge with the RI-related governance. In addition, a dedicated team with Group Risk Management analyses Emerging
Risks via a specific framework, tools and local network. These risks, which oft en relate to long term ESG issues, are monitored and their potential impact assessed within a risk mapping framework (e.g. regulatory & legal, environmental, socio & political, economic & financial, medical and technological).
of new coal-based power); ■ any new and existing business, in any line of business is banned for power generation and mining clients with significant coal business (defined as: power generation clients with more than 30% of coal share of revenues or coal-based energy mix and mining clients with over 20 million tons of coal extracted per year). A long-term target to achieve a “0%” exposure to coal business by 2030 in the European Union and OECD, and 2040 in the rest of the world, is also set; ■ a case by case referral process is used to ban or authorize business with coal industry partners (such as equipment suppliers, port terminals, dedicated railways); ■ Property and Construction covers are also banned for Oil &
Gas extraction in the Arctic Region; ■ the above rules do not apply to Employee Benefits (Health,
Savings, Life insurance) or to reinsurance treaty. The details of these policies are published on AXA Group’s website: https://
AXA XL underwriters have significant expertise and capacity for insuring clients in the energy industry, with a strong focus on renewable energy. Some local entities also develop Motor and car fleet insurance policies encouraging low CO
AXA’s investment and insurance restrictions are complemented by an active engagement strategy. Indeed, as a shareholder and bondholder, AXA has the possibility to engage with the management of companies in which it invests in order to help catalyze positive change on certain sustainability issues. AXA
joined several shareholder coalitions, notably Climate Action 100+, an initiative to engage for 5 years with the world’s largest corporate greenhouse gas emitters to curb emissions, strengthen climate-related financial disclosures and improve governance on climate change.
AXA supports various initiatives related to climate change and environmental protection. These include the following: ■ Net-Zero Asset Owner Alliance (www.unepfi.org/net-zeroalliance ): the NZAOA is a coalition of institutional investors
Climate Related Financial Disclosures (TCFD) upon its launch in December 2015. The TCFD was set up by the Financial
Mark Carney (former Governor of the Bank of England, now UN
TCFD, notably with an ambition to investigate the relevance of “investment temperature” metrics; ■ Climate Finance Leadership Initiative: the CFLI, which was launched in September 2018 by the UN Secretary General, and is presided by Michael Bloomberg, seeks to develop standardized and securitized investments at scale to tackle climate change; ■ Alliance of CEO Climate Leaders: this is a group of 50 CEOs set up by the World Economic Forum (Davos) to actively engage in global eff orts to create market opportunities for tackling climate change. Its goals are to promote strong climate action including a commitment to reduce carbon emissions, to support the TCFD, to support low-carbon solutions and finance, and to promote adequate regulation. AXA joined in 2018; ■ IDF: AXA’s Chairman presides the Insurance Development
Forum since 2018. The IDF brings together the private sector insurers, reinsurers and brokers, together with the World
Bank and the United Nations Development Program, with the aim to support the G20 “InsuResilience” objective of insuring 400 million more people in emerging countries by 2020 against climate-related disasters and of improving their climate resilience; ■ Plastic Solutions Investor Alliance: as part of its engagements to protect biodiversity, in 2019 AXA became a member of the
The Group has signed several NGO partnerships: ■ in 2019, the AXA Group signed a three-year partnership with the
WWF France in order to develop and strengthen its biodiversity strategy. The partnership will include: craft ing an industry-led taskforce to develop a biodiversity risk-related guidelines for the financial services industry, developing biodiversity risk and impact metrics, and supporting AXA’s Impact Investing work on biodiversity solutions. See “Biodiversity” paragraph above; ■ C40: during a year-long partnership, AXA and C40 Cities collaborated on a study on infrastructure interdependencies in cities. The purpose of this study was to better understand the progress that cities are making to include infrastructure interdependencies in their adaptation plans, to identify barriers cities face and to provide practical recommendations for how cities can overcome these challenges to improve the resiliency of their networks. The results of the study were published in a report Understanding infrastructure interdependencies in cities, which was launched in November 2019;
■ UN Habitat: in May 2019, at the Global Platform for Disaster
AXA has also joined or supported many Investor and Insuranceled coalitions over the years in the fields of ESG, RI and CR: UN
AXA has implemented an environmental reporting process and related policies since 2002, in line with 2014/95/EU Directive relative to non-financial reporting.
This process provides standards and controls, supports environmental data collection through an internal reporting tool and promotes transparent reporting of environmental impacts across our operations. It helps us in monitoring and managing our CO
emissions per Full-Time Employee (FTE) by 25%, broken-down into the following sub-targets: ■ -35% power consumption (kwh/FTE) – Scopes 1&2; ■ -15% business travel: vehicle fleet (km/FTE) – Scope 1; ■ -5% business travel: air and train (km/FTE) – Scope 3; ■ -45% off ice paper (kg/FTE) – Scope 3; ■ -50% marketing and distribution paper consumption (kg/
In addition, the Group has set a target to source 100% of its electricity consumed (off ice sites and AXA-owned data centers)
from renewable energy sources by 2025, in line with our “RE100”
commitment (RE100 is a coalition of companies pledging to buy 100% of their electricity from renewable sources).
emissions reduction targets are based on the approach promoted by the “Science Based Targets” (SBT)
initiative, which AXA joined in 2015. According to the SBT, targets adopted by companies to reduce greenhouse gas emissions are considered “science-based” if they are in line with the latest climate science expects from companies to meet the goals of the Paris Agreement to limit global warming to well-below 2°C
from AXA’s power consumption linked to building and data centers, and -15% from AXA’s business travel emissions. Our absolute CO
emissions per FTE related to paper, power, business travel and AXA vehicle fleet per person increased by 9% between 2018 and 2019 and decreased by 32% since 2012 (AXA global 2020 target has thus been achieved ahead of schedule). Emission factors used to calculate CO
emissions per FTE have been updated in 2019. When recalculated using the same emission factors as for previous years, CO
emissions generated from gas and heating oil burned onsite, as well as fuel used by AXA’s car fleets. Scope 1 emissions per FTE was stable between 2018 and 2019 and decreased by 37% since 2012. The decrease of CO
emissions per FTE related to heating oil consumption in 2019 compared to 2018 is mostly due to power outage from service provider in India resulting into use of diesel generator. In 2019, AXA’s car fleetrelated CO
uses both market-based (electricity supplier energy mix) and location-based (average country energy mix) approaches. For the entities buying renewable electricity and which have electricity consumption data by technology (such as hydro, solar, wind, biomass and geothermal or others based on power generation mix used by their providers), AXA uses a more precise “marketbased ” approach, thus attributing the corresponding emissions factors to each source type. For entities which do not have information about their energy provider’s energy mix, AXA uses a “location-based” approach (with emissions factors provided by the French Environmental Regulatory body ADEME).
In addition, AXA also measures the carbon emissions related to its employee commuting, even though such indirect emissions may be considered to be outside of the scope of the Group’s responsibilities. In 2019, based on responses collected from 57 entities where AXA employees commuted a total of 1,047 million kilometers, out of which 49% travelled by public transport, 7% by company cars, and 31% by personal vehicles and the rest by foot or bicycle. Employee commuting-related CO
AXA’s power consumption includes the total energy consumed by its corporate sites and data centers during the reporting year. This includes on-site energy consumption for heating and cooling as well as electricity for daily operational activities. In 2019, our total energy mix consisted of electricity (74%), gas
Our power consumption per FTE decreased by 4% between 2018 and 2019, and by 53% between 2012 and 2019. 64 out of 249 AXA
In 2019, 59% of the electricity consumed by AXA originated from renewable energy sources (hydro, wind, solar, geothermal, biomass). AXA’s “RE100” target is to reach 100% by 2025. In 2018, the share of renewable energy was 55%. This increase is mainly due to a better knowledge of the energy source.
FTE usage, there were a decrease of 29% compared to 2012. The
Group has implemented car fleet guidelines which define carbon emission limits for all types of vehicles regardless of employee contributions. The guidelines also feature vehicle security standards and promote employee access to “safe and green driving” courses. In 2019, 26% of km travelled by AXA vehicle fleet were by vehicles emitting equal to or less than 100 g of CO
km (compared to 4% in 2012), 39% of vehicles emitting equal or less than 101 g-120 g (25% in 2012) and an average emissions rate of 124 g of CO
AXA also strives to increase the volume of paper originating from recycled sources or sustainably managed forests (Group target: 95% of recycled paper by 2020). In 2019, AXA procured 58% of off ice paper and 72% of marketing and distribution paper from recycled sources. To promote this approach, the Group requires environmentally-friendly off ice paper as a minimum standard.
compared to 2018, and decreased by 57% since 2012. This decrease in the total recycling rate is due to the overall decrease in office paper consumption (see section above). 71% of ink cartridges and toners were recycled. AXA’s IT business unit, AXA
Unsorted waste increased by 3% between 2018 and 2019, and decreased by 27% since 2012. This is mainly due to the improvement of waste measurement processes in local entities.
KPI: Off ice paper consumption per person kg/FTE 11 13 16
Data collected from 98 entities. Key Performance Indicators (KPIs) highlighted in bold. AXA sites with fewer than 50 FTEs are not included in data collection, but are part of extrapolation process.
(a) In 2019, environmental indicators were collected for 101,354 FTEs working on AXA sites (unless otherwise indicated in these footnotes), and were then extrapolated, continent by continent, to cover all 121,337 salaried FTEs (all types of contrat), working at the AXA Group in average in 2019.
(d) Home/workplace commute estimations are based on an annual online transportation surveu, issued to every AXA salaried employee. This data has been collected from surveys answers by 19,563 FTEs and then extrapolated. Sites whose response rate was below 5% have been excluded from the data consolidation process.
(e) The emission factors specific to each country used for energy, train and air were revised in 2019. Source: Ademe and DEFRA.
(f) The AXA vehicle fleet data was collected from entities representing 101,270 FTEs.
(h) This data has been collected from entities representing 101,044 FTEs. Some sites in Asia and America are nont equipped with water meters, which prevents accurate measurement and excludes the from the reporting scope before extrapolation. -
Being a responsible insurer has always been part of AXA’s DNA, because of the very nature of our insurance business which is based on the principle of a social safety net by pooling risks, but also because of its Corporate Responsibility strategy that positions it as a company striving for a stronger and safer society. In the previous section, AXA’s vision and practices on its Environment pillar has been shared. This section encompasses AXA’s practices and key achievements as an inclusive insurer when it comes to the other two pillars, respectively on Health & Disease Management and on Social Inequalities and Inclusion.
In France, demand for responsible products from clients continues to grow. Consequently, back in 2015, AXA France created the “Assurance Citoyenne” (“Citizen Insurance”) label, which guarantees that all insurance contracts off er benefits to clients as well as positively impact society. In 2019, this initiative was adapted and deployed on AXA’s Savings contracts under the
“Épargne citoyenne” (“Citizen Savings”) label. These two labels are based on an assessment toolkit built in collaboration with a panel of external stakeholders and audited by an independent third party. Our engagements are communicated through the label’s four pillars, which are the following: “Trust” (e.g. simple contracts for readability and transparency), “Prevention” (e.g.
product accessibility for populations usually excluded from insurance mechanisms, investments in companies which create recruiting opportunities and protect human rights). In 2019, AXA
Morocco). Local AXA entities have also established distribution partnerships in Nigeria (via several MFI’s), Brazil (via a leading retailer), and Mexico (MFI for P&C and credit life insurance to micro-entrepreneurs).
Those micro-insurances were designed by AXA Mexico to respond to the principal risks faced by the communities and cover the total value of the houses against earthquakes, fires and hydrometeorological phenomena such as flood or hurricanes. They are free of charge for the beneficiaries for the first 3 years
Unión Hidalgo and 287 in Santiago Niltepec for a total of 996,000
AXA Climate (formerly AXA Global Parametrics) provides immediate protection to communities facing climate risks in order to prevent them from falling into poverty.
AXA Climate works closely with governments and international organizations to develop public-private partnerships in emerging markets. Public-private partnerships represent 60% of portfolio.
Corporate clients of AXA Climate include also leading industrialists in Europe, agriculture cooperatives, forestry organizations both in Europe and Latin America, and renewable energy companies.
In November 2019, AXA partnered with 50inTech, a global network of entrepreneurs who are committed to the fight for gender equality in the Tech sector. Together, they launched the
FemTech 2020 accelerator program. The objective is to identify and accelerate 10 rising FEMTECH female founders through mentoring, learning and networking.
As announced publicly in May 2016, AXA decided to divest from and end insurance covers for the Tobacco industry. AXA
believes that supporting an industry which is the main cause of long-term non-communicable diseases, including cancer, heart disease and chronic respiratory illnesses, is not compatible with our role as one of the world’s largest health insurers, and our strategy to become our clients’ health risk prevention partner.
Sending such a signal to markets and regulators reinforces the development of tobacco controls, which ultimately contribute
Group assets added in 2018): equity assets have been divested immediately, while debt assets are run of gradually. In this perspective, AXA continues to support important anti-tobacco initiatives such as the NGO “Tobacco-Free Portfolios” whose
AMP Capital. This pledge aims to “denormalize” relationships between the financial community and the tobacco industry.
It is now supported by 128 signatories with total assets under management of US$8.1 trillion. AXA also contributes to this antitobacco fight through dedicated awareness campaigns. For the
World no tobacco day on May 31, 2019, AXA launched a global awareness campaign #TobaccoFreeMe on the social media with a series of 6 videos. Being one of the world’s largest health insurers, AXA’s strategy is indeed to become its clients’ health risk prevention partner.
To respond to the growing urge of the population and the public sector that private sector take a more active role in bridging the gap of inequalities, AXA has embarked in 2019 in several coalitions for a more inclusive economy.
This collective of now 33 companies has set itself three working groups: 1/employment (apprenticeship, integration, training), 2/more accessible products and services, and 3/inclusive purchasing. As far as the first working group is concerned, one of the main commitments of the coalition was a 35% increase in the number of work-study students between 2018 and 2020.
Renault and Total, AXA has launched a first initiative to reinforce access to driving licenses for young people in diff iculty and in remote areas where mobility is critical given the lack of public transports. Free all risk insurance has been provided to five cars in “missions locales”, reaching 15-20 young people per mission, hence a total of 75-100 people driving each 2,000 km per year
Inclusive Growth” coalition. This OECD-led coalition of private companies contributes to fighting social inequalities by working closely with policymakers to advance inclusion at both the global and local levels. This initiative was off icially launched on August 23, 2019, at the G7 Summit whose theme is “fighting inequalities of all types”. This announcement will be followed by a 3-year-program monitored through a Board of CEOs. The scope of this initiative covers the G7, the OECD and African countries with three main deliverables: ■ a pledge signed in our head off ice on promoting equality of opportunities, eliminating gender disparities, reducing spatial inequalities; ■ an international incubator hosted at the OECD; ■ a global pool of funds hosted by the World Bank.
Through this coalition, AXA aims at scaling up inclusive growth project beyond France, complementing government measures to increase the purchasing power of the lower income people in developed countries and developing social business in our industry that directly addresses constrained expenses
The AXA projects submitted to the incubator include among others the previously mentioned projects on Emerging
AXA’s role as a responsible corporate citizen. As a result, AXA
As a responsible corporate citizen, AXA strives to play a positive role in society, by sharing our business expertise, by helping to build better understanding of the risks faced by individuals and society at large, and by building a culture that promotes employee volunteering to support the communities in which
In 2019, AXA has profoundly changed its corporate philanthropy policy, with the aim of better integrating it into its CR strategy and increasing its impact. A Corporate Philanthropy Committee has been set up to decide collectively on major partnerships based on precise criteria. The Group aligns its patronage with the three CR pillars: climate and the environment, health and disease prevention, social inequalities and inclusion. Through the Community Investment Guidelines, AXA entities are also encouraged to focus their philanthropic actions around these three pillars.
in donations made by the Group and entities (including the AXA
■ I n addition, AXA signed a new global partnership with WWF in 2019 to address climate and biodiversity issues. Through this three-year program, WWF supports AXA in its eff orts to ensure that natural capital is better taken into account in all of our activities (see Section 7.3 “Climate change and biodiversity”).
In addition, the philanthropy component of this program makes it possible to contribute directly to the preservation of ecosystems in Mexico and New Caledonia. In Mexico, the objective of the program supported is to demonstrate that it is possible to strike a balance between nature conservation, agricultural development and water use through a project to restore degraded forest. In New Caledonia, AXA wanted to support WWF’s conservation efforts to strengthen the resilience of coral reef biodiversity, which is now considered one of the most threatened ecosystems on the planet.
To reach children aged from 0 to 5, AXA acts on their immediate environment, namely mothers and the health and education professionals around them. Training, communication and advocacy activities with authorities will be implemented by local UNICEF teams. The objective is to support 177,000 children and their mothers in the Philippines and 16,000 in
■ P revention is also a component developed by our entities in connection with our insurance business. In 2019, eff orts linked to prevention were up to €5.3 million, with two major contributors, France and Spain, developing ambitious programs. Risks related to road accidents are also covered, in connection with our Motor insurance business. France, Spain,
Switzerland and Mexico are notably developing awareness campaigns in this area, with an investment of €2 million.
Inequalities and Inclusion” pillar by all Group entities, particularly through the AXA Atout Cœur volunteer program
(see below). 68% of the volunteer activities off ered by AXA
Atout Cœur and 54% of the sums paid out are destined for projects designed to fight inequality.
The AXA Group also redeployed a policy of cultural and heritage philanthropy in 2019. Indeed, the values of protecting and passing on patrimony are at the heart of the insurance business.
Joining forces with major French symbols of international stature, AXA financed the acquisition of a national treasure for the Musée d’Orsay, the restoration of the Salle des États of the
entities, such as AXA France and AXA XL, are also developing heritage and cultural philanthropy actions, promoting access to heritage and culture for all (priority “social inequalities and inclusion”).
The AXA Research Fund, in line with AXA’s societal mission and as part of a scientific philanthropy initiative launched in 2008, aims to support “transformative” research projects that explore solutions to the challenges society faces today. In line with the pillars of corporate responsibility, the AXA Research Fund’s work covers the areas of climate and environment, health and socioeconomic issues/inclusion. It also develops the transversal pillar of new technologies. The selection of research projects is overseen by an independent Scientific Council.
In 2019, the Fund selected 4 AXA Chairs for a total amount of €4 million (€1 million per project over 5 years). The four selected areas of support are Invasive Species at the University of Paris
(6 projects), and Cyber Risk (4 projects) for a total of €2.25 million.
The AXA Research Fund continued to support strong initiatives around women through the Women, Leadership and
Beyond funding, the AXA Research Fund strengthened its dissemination eff orts through two publications – “Silver Age: Aging Better” and “Biodiversity at Risk,” that highlight the economic, social and biological problems of ageing and the loss of the natural world.
(estimated – almost 34,000 in 2018) donated their time and skills.
(200,700 in 2018) during the year, while working on solidarity projects. A large majority of volunteer hours are performed during working hours (more than 240,000 versus 157,000 in 2018).
Expérience Solidaire” program: 110 employees volunteered in partner associations (versus 47 in 2018). In total, the salaries paid for the 109,300 hours spent on these skills sponsorship missions represent the equivalent of a donation of nearly €7.9 million
The integration of XL Group brings a positive synergy to the AXA
AXA is committed to conducting its business according to the high ethical principles. This commitment is designed to ensure compliance with laws and regulations in the various jurisdictions where AXA operates, to earn the continued trust of our clients, shareholders, employees and business partners, but also frequently extends beyond legal obligations on a range of topics about which AXA has strong convictions.
Group-wide rules and guidelines to ensure that AXA Group companies and employees have a common understanding of the compliance and ethical standards the Group requires.
The Guide covers a variety of matters, including specific rules concerning conflicts of interest, anti-bribery and Corruption, insider trading, management of confidential information, etc.
This policy has been regularly updated to take account of new regulations and most notably the recent French law known as
“Sapin II” no. 2016-1691 of December 9, 2016, on transparency, fight against corruption and modernization of economic life. A
As a result, consumer protection regulations have become an increasingly important area for the financial services sector and AXA has taken significant action to comply with these requirements in each of its businesses operating in the European
In line with AXA’s sustainability risk assessment, the Group has put in place various initiatives to promote the use of data to address societal challenges, as well as to ensure client data is protected.
Off icers whose mandate is to ensure the protection of sensitive personal data across the Group.
The information related to AXA’s policy and control mechanisms to address data privacy risks are explained in paragraph “Personal data protection” in Section 7.6 “Vigilance plan”. Information related to why AXA considers data privacy as a key risk topic is detailed in Sections 4.1 and 6.3.
Impact AI (Artificial Intelligence). Impact AI is a “think and do tank” composed of companies, consulting firms, startups, schools and actors working on Responsible AI with 5 programs of actions, such as analyzing the perception of AI and the development of a “trusted AI”, sharing tools for a responsible use of AI, helping people adapt to the digital era, and creating partnerships to foster responsible AI among all types of actors
“The Ethics Guidelines for Trustworthy Artificial Intelligence”: these Guidelines put forward a human-centric approach on
AI and list 7 key requirements that AI systems should meet in order to be trustworthy. These requirements will go through a piloting process expected to conclude with the presentation of an AI Policy paper in early 2020.
Mexico, where road data is shared with public institutions in order to improve road safety. These two initiatives are still outstanding.
In Singapore, by sharing an analysis and consolidation of our claims and policy data for car accidents, users (both customers and non-customers) can better understand the risks on the roads they frequent and how they can avoid car accidents. With the same objective, AXA Mexico have helped Mexico City authorities secure dangerous crossroads through an interactive map and open dataset of car crashes (raw data) available for download for authorities through the International Institute for Data Science website. In 2019, follow-up projects included an impact survey with the National Health Institute on speed areas and bodily injury severity as well as the creation of a super database with a university.
Group’s Code of Professional Conduct, must sign a dedicated and reinforced Code of Ethics which promotes fairness and neutrality, confidentiality and transparency of our sourcing decisions. They also are aware of the AXA CR strategy and the AXA Responsible Procurement policy through awareness sessions given by the network of Responsible Procurement
Risks Matrix. Suppliers are thus classified into procurement risk categories and evaluated against five CR criteria (environment, social, product & services end-use impact, suppliers’ supply chain, and business integrity). Vendors falling in the highest CR
Detailed information on our responsible procurement policy and standard is elaborated in AXA’s Group Procurement Guidelines.
(hereinaft er the “Statement”), included in the management report pursuant to the legal and regulatory provisions of articles L.225-102-1,
R.225-105 and R.225-105-1 of the French Commercial Code (Code de commerce).
Pursuant to legal and regulatory requirements, the Board of Directors is responsible for preparing the Statement, including a presentation of the business model, a description of the principal non-financial risks, a presentation of the policies implemented considering those risks and the outcomes of said policies, including key performance indicators.
Our independence is defined by the provisions of article L.822-11-3 of the French Commercial Code and the French Code of Ethics
On the basis of our work, our responsibility is to provide a report expressing a limited assurance conclusion on: ■ the compliance of the Statement with the provisions of article R.225-105 of the French Commercial Code; ■ the fairness of the information provided in accordance with article R.225-105 I, 3 and II of the French Commercial Code, i.e., the outcomes, including key performance indicators, and the measures implemented considering the principal risks (hereinaft er the
However, it is not our responsibility to comment on: ■ the entity’s compliance with other applicable legal and regulatory provisions, in particular the French duty of care law and anticorruption and tax evasion legislation; ■ the compliance of products and services with the applicable regulations.
French Institute of Statutory Auditors (“CNCC”) applicable to such engagements, as well as with ISAE 3000 – Assurance engagements other than audits or reviews of historical financial information.
Nanterre – Terrasses 1,2,3, GIE AXA Group Operations France, AXA Group Operations SAS, AXA France (CIS), AXA Insurance UK, XL
Our work was carried out by a team of 10 people between mid-September 2019 and end of March 2020 took a total of 8 weeks.
Without qualifying our conclusion and in accordance with article A. 225-3 of the French Commercial Code, we have the following comments: The entity is still working on the presentation of Key Performance Indicators for some of the main CSR risks defined by AXA within its
These limitations are explained in the paragraph “Methodology and Reporting Scope: Business Behaviour” Section of the Statement.
The AXA Group is committed to promoting and protecting human rights (including fundamental freedoms and the health and safety of persons) as well as the environment in conducting its business.
To comply with the requirements of French law (1), AXA has
Given the diversity of the activities of AXA’s subsidiaries, contractors and suppliers, the vigilance plan sets out certain guiding principles and AXA-wide policies designed to ensure that they have a common vision of the AXA Group’s standards in terms of corporate responsibility, safety, whistleblowing and data protection, and operate accordingly. These common measures do not prevent or restrict AXA from voluntarily taking additional actions in relation to such matters.
To ensure that each identified potential risk is covered by a
The AXA Group considers that its activities could have potential direct and indirect impacts on the human rights of its employees and customers, as well as potential indirect impacts on the human rights of others through relations with (i) corporate customers or (ii) investments in companies that are active in sectors and/or countries with increased risk of human rights violations.
Consequently, in 2017 the AXA Group developed a human rights risk assessment that identified the most relevant risks to human rights that the AXA Group should consider in conducting its business. Risks were identified in areas such as equality before the law and non-discrimination (with respect to minorities), freedom from all forms of forced or compulsory labour, child protection, freedom of association, collective bargaining, the right to just and favourable working conditions, people’s freedom and security, the right to be healthy and have an adequate standard of living and the right to privacy. This evaluation (“AXA SA Human rights risk assessment and recommendations to further improve AXA’s
Environmental risks were already identified in the AXA Group’s risk mapping, particularly those related to climate change and biodiversity. AXA’s direct operations, focusing on financial services, do not generate major impacts on the environment.
As a result, AXA’s environmental reporting and management processes focus on energy, water and paper consumption, as well as related CO
emissions. AXA’s global environmental reporting process, which is verified by an independent thirdparty, allows AXA to (i) evaluate its impact on the environment each year and (ii) identify the risks stemming from its activities for the environment. Please refer to Section 7.3 “Climate Change and biodiversity – Own o perations – Environmental reporting process and verification” of this Annual Report for further information on
Responsible Investment Policy and built an analysis framework in order to identify potential indirect impacts on human rights and the environment.
■ A s a business partner, AXA has implemented processes to identify and assess the risk of human rights violations and environmental risk associated with its use of service providers and suppliers. AXA implemented a Corporate responsibility
Suppliers falling in the highest CR risks categories are annually asked to share their current DJSI or EcoVadis scores or undergo an EcoVadis assessment.
Group is committed to respecting internationally recognized human rights principles as defined by the (i) United Nations
Principles on Business and Human Rights (implementation of the United Nations “Protect, Respect and Remedy” Framework or “Ruggie Principles”). The human rights policy describes AXA’s commitments as an employer, a responsible business partner, an insurer and an investor as well as how the protection of human rights is implemented at the core of its activities.
AXA is committed to protecting AXA employees’ human rights, specifically the principles of freedom of association, the right to just and favourable working conditions and non-discrimination, through: ■ promoting the 10 guiding principles of the UN’s Global
Section 7.2 “Social Information – Diversity and Inclusion breeding talent and innovation ” of this Annual Report; ■ the AXA Compliance & Ethics Code, available on the AXA
See further details in Section 7.2 “Social Information – Employee relations and work conditions – Secured work conditions” of this
Binding Corporate Rules, following consultations with European data protection authorities, and constituting an internationally approved data privacy contractual framework for the treatment of customer, employee and other stakeholder personal data.
Group undertakes not to sell personal data of its customers, are available on the AXA Group’s website (www.axa.com/en/aboutus /our-commitments).
Protection Regulation and had in this respect delivered thirty projects dedicated to data privacy, involving over three hundred people in entities located in sixteen countries. The Group is also implementing similar regulations recently adopted in countries outside the European Union.
AXA further seeks to support its customers’ rights while preventing or mitigating adverse human rights impacts that may arise from the provision of insurance products and services to corporate customers by: ■ ensuring fair treatment of all customers; ■ offering products and services which help reduce social exclusion and empower insured people to achieve positive health and safety outcomes; ■ providing customers with the means to express and resolve any disputes that may arise with AXA Group companies, notably through dedicated complaints departments.
In particular, AXA’s ambitious environmental targets included in its 2020 environmental strategy are notably focused on the reduction of carbon emissions, one of the main contributors to climate change. AXA’s carbon emissions reduction targets for 2018-2025 are based on an approach promoted by the “Science
BREEAM, LEED, HQE. Please refer to Section 7.3 “Climate Change and biodiversity – Own o perations – 2019 performance overview
– Power Consumption” of this Annual Report for further details on AXA’s certifications.
responsible-investment), the Group has designed six sector policies to address investments in particularly sensitive sectors from an ESG perspective. These guidelines cover human rights and environmental concerns (i.e. controversial weapons, tobacco, coal, oil sands, palm oil production and soft commodity derivatives), and entities are required to certify compliance annualy.
In 2019, the AXA Group ensured the implementation of all policies and procedures described in the vigilance plan through the involvement of (i) central teams from the
Risk Management and Human Resources Departments and (ii) a network of local correspondents .
In addition, a reporting process for Group entities has been established. Reporting relies on pre-existing procedures and monitoring tools and notably on an internal review conducted by the Corporate Responsibility Department. In 2019, the principal operating entities were asked to conduct an internal risk assessment to identify any gaps with the vigilance plan.
Labour Organization) in any remaining commercial contracts not including such clause; ■ the adjustment of local alert procedures to cover human rights and/or the environment; ■ the inclusion of certain high-risk emergency situations
The current alert procedure allows all stakeholders (employees, business partners, etc.) to share their concerns and/or report any practice, action or behaviour that they consider inappropriate, illegal, or unethical. Alerts can be made within the relevant entity or sent directly to the Group using a dedicated email address
Furthermore, all AXA Group companies are required to define internal regulations and other policies governing whistleblowing pursuant to local laws and regulations. In 2019, a global communication campaign, “Speak-up”, was launched to refresh employee awareness of both the local and Group alert procedure. The purpose of the campaign was to strengthen the process, and to increase consistency and simplify the process across AXA. Various media were used to broadcast this campaign, increasing its impact and making it available to all, including through newsletters, screen savers, posters, videos, training, formal presentation, etc.
In 2019, the AXA Group put together a panel of main suppliers using an approach based on an analysis of supplier risk by purchasing category and volume. Most of the main suppliers were evaluated, including through the specialised evaluation platform EcoVadis. With this assessment, the Group ascertained that very few of its main suppliers had been identified as deficient and any such suppliers have been sent a corrective action plan by EcoVadis. AXA teams have access to the corrective action plan through the platform. The main suppliers of the AXA Group panel can be evaluated by EcoVadis every two years.
The AXA Group is pursuing its committed to implementing these same principles and received a “Platine” score in its last EcoVadis evaluation.
The AXA Group strives to strengthen the communication of its vigilance plan to all stakeholders, in particular by making it available on AXA’s website (
Group Chief Risk Off icer (CRO) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Consolidated Financial Statements.
Since its delisting from the New York Stock Exchange (NYSE) in
AXA’s Statutory Auditors provide a reasonable assurance report on AXA Group’s ICOFR each year.
The IFC framework is based on the “Internal Control – Integrated
The IFC program includes primarily the entities which are individually significant to consolidated financial position or results of operations, as well as the entities which provide significant services to AXA and/or its consolidated subsidiaries (the “Group”).
The IFC program is managed by Group Risk Management and is steered by the Group IFC Committee chaired by the Group
Outstanding control deficiencies are consolidated at Group level to evaluate their impact on Consolidated Financial Statements, compensating controls and other qualitative factors. This evaluation process is designed to identify any control deficiencies that may rise to the level of a material weakness. A material weakness is a deficiency or a combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the
At each year-end, the in-scope entities are required to perform an evaluation of their ICOFR as part of an internal certification process. This process involves formal sign-off by the entity’s process owners and culminates with a formal management report from the entity’s CFO or another senior executive off icer, co-signed by the Risk Management department , stating their conclusion as to the eff ectiveness of the entity’s ICOFR.
Group’s ICOFR and to support its conclusion as to the eff ectiveness of AXA Group’s ICOFR.
The Company’s management is responsible for maintaining eff ective internal control over financial reporting and for establishing a statement on its assessment of the eff ectiveness of internal control over financial reporting as of December 31, 2019. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS accounting principles. The assessment of the eff ectiveness of internal control over financial reporting is based on criteria established in the Internal Financial Control (IFC)
We conducted our work in accordance with French professional standards and ISAE 3000 (“Assurance engagements other than audits or reviews of historical financial information”). These standards require that we plan and perform the audit procedures to obtain reasonable assurance about whether AXA management’s assertion that internal control over financial reporting is eff ective, was fairly stated in all material respects. Our audit procedures included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating eff ectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe the evidence gathered is suff icient and appropriate to express our opinion.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of eff ectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or if the degree of compliance with the principles or procedures may deteriorate.
APPENDIX II STATEMENT OF THE PERSON RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT
I confirm that, to the best of my knowledge, the financial statements have been prepared in accordance with applicable accounting standards and fairly present the assets and liabilities, the financial position and the profit or loss of the Company and its consolidated subsidiaries, and that the Board of Directors’ report presented in page 476 fairly presents the evolution of the business, results and financial position of the Company and its consolidated subsidiaries, and describes the principal risks and contingencies facing the Group.
Net financial charges, which include interests and similar charges net of income from loans and investments, amounted to €953 million compared to €919 million in 2018, representing an increase of €34 million notably as part of the acquisition of the XL Group.
Operating expenses amounted to €413 million compared to €441 million in 2018.
brand valued at €307 million, and €21 million related to the capitalization of soft ware expenses.
Equitable Holdings, Inc. sold; partly off set by: ■ €1,296 million in capital increases from the XL Group, primarily related to its debt deleveraging plan.
Cash and cash equivalents totaled €2,956 million compared to €1,538 million at the end of 2018, up €1,418 million resulting from the dividends received and the proceeds coming from the disposal of Equitable Holdings, Inc., partly off set by the dividend paid and the repayment of loans made by the operating entities.
(or €245 million) and a foreign exchange impact of €75 million.
Provisions for risks and charges amounted to €1,563 million, and mainly included €412 million of provisions for the possible repayment of tax savings to subsidiaries belonging to the French tax consolidation group, a €220 million provision for exchange-rate risk, a €284 million reserve for unrealized capital losses on equity options, and a €352 million provision for internal guarantees in the context of a business litigation.
Financial debts amounted to €16,389 million from €19,522 million as of December 31, 2018, representing a decrease of €3,133 million reflecting a decrease by €2,322 million from loans granted by
Group entities mainly related to the financing of the acquisition of the XL Group as well as a €497 million reduction in margin call under collateral agreements.
Payment delay group 0 day 30 days 60 days 90 days
Total Amount VAT included of invoices concerned (in Euro) 21,998,690 1,219,793 - 5,607,764 410,386 7,231,943
Percentage of revenue VAT included of the period 7.94% 0.44% - 2.02% 0.15% 2.61%
Percentage of revenue VAT included of the period 40.71% 29.61% 16.90% 2.11% 0.11% 48.73%
Total Amount VAT included of invoices concerned (in Euro) 10,075,754 8,252,596 49,131 51,167 370,441 8,723,335
Total Amount VAT included of invoices concerned (in Euro) 368,273,106 129,230,512 77,846,236 10,926,170 83,156,756 301,159,674
Profit on ordinary activities before tax (VI = III + IV + V) 4,477 2,593
a) Aft er tax income, before depreciation, amortization b) Aft er tax income, aft er depreciation, amortization c) Net dividend per share
(a) Dividend proposed at year end 2019 is submitted to the Shareholders’ Meeting of April 30, 2020 and based on 2,417,695,123 outstanding ordinary shares.
AXA EQUITY AND LAW PLC 1,208 2,221,506 99.96% 1,133,234 5 Old Broad Street – EC2N 1AD – LONDON – United Kingdom - - -
O’Hara House, One Bermudiana Road – Hamilton Bermuda HM 08 - - 395 -70, Shindaebang-dong, Dongjak-gu – SEOUL – Corée du Sud - - -
AXA GLOBAL RE (ex AXA GLOBAL P&C) 196,723 252,169 100% 490,268 61, rue Mstislav Rostropovitch – 75017 Paris – France - - 25, Boulevard du Souverain – 1170 BRUXELLES – Belgium - - -
Cœur Défense – Tour B – La Défense 4 – 100 Esplanade du - - -
Général de Gaulle – 92932 PARIS LA DEFENSE - - -
Wolfe Tone House, Wolfe Tone Street, Dublin 1 – Irlande - - -
I Notes to the financial statements as at December 31, 2019
Net income for the fiscal year ended December 31, 2019 resulted in a profit of €4,301 million compared to a profit of €307 million for the year ended December 31, 2018.
In accordance to regulation CRC 2008-15, repealed and replaced by regulation ANC n°2014-03 chapter “titre VI, chapitre II, section 4 Plans d’options d’achat ou de souscription d’actions et plans d’attribution d’actions gratuites aux salariés” (especially
Find below a summary of options and performance shares or units shares granted in 2019 and 2018 to members of the Management
management investments, impairment charges and reversals in respect of these securities and related receivables, gains and losses arising from exchange rate movements, charges and reversals of provisions for risks and charges, and exceptional income and expense.
AXA brand valued at €307 million and €21 million relating to the capitalization of soft ware expenses.
The fair value of investments in subsidiaries and aff iliates is their going concern value for the firm. This may be determined as a function of (i) their share price, (ii) their shareholders’ equity
Employee benefit liability was reviewed and a valuation was carried out, in accordance with the Recommendation ANC n°
■ Interest rate swaps: these transactions are recognized by applying the accrued interest method. A distinction is made in the income statement and balance sheet between income from the principal transaction, which is the subject of the swap, and the net income from the swap transaction. The nominal value of the swaps serving as a basis for interest rate swaps is recognized off -balance sheet; ■ Derivative products qualifying as hedges against foreign exchange risk (exchange rate or currency swaps, currency futures) are recognized off -balance sheet as a reciprocal liability and receivable commitment. For currency options, the premium paid on acquisition is recognized as an asset on the balance sheet in the “cash instruments” account. When the option is exercised, the premium is recorded in the income statement. The same is true when the option is not exercised at term. For option sales, a provision for risks and charges is recognized to take into account the unrealized loss. Other derivative instruments are recognized off -balance sheet at their nominal value. Unrealized losses arising from the estimated market value of these financial instruments give rise to recognition of a provision for foreign exchange loss when the hedge accounting cannot be applied;
■ Equity derivative products: equity option rights paid or received are posted in a suspense account on payment or receipt of funds. At the balance sheet date, if the option has not been exercised, the rights received, representing possible income, are not recognized in the income statement. A provision is created against rights paid if it is likely, given market trends, that the option will not be exercised. When the option is exercised, this represents an addition to the acquisition price of the underlying instrument and an addition to the sale price when the option is sold.
(a) The net decrease of €5,238 million is mainly explained by €6,326 million book value of the shares in Equitable Holdings, Inc. sold.
December 31, 2019 Less than 1 year 1 to 5 years More than 5 years
(a) Mainly include €412 million of provisions for the possible repayment of tax savings to subsidiaries belonging to the French tax consolidation group, a €220 million provision for exchange-rate risk, a €284 million reserve for unrealized capital losses on equity options and a €352 million provision for internal guarantees in the context of a business litigation.
Financial debt amounted to €16,389 million versus €19,522 million as at December 31, 2018, down €3,133 million reflecting a decrease by €2,322 million on loans granted by Group entities mainly related to the financing of the acquisition of the XL Group, as well as a €497 million reduction in margin call under collateral agreements.
December 31, 2019 Less than 1 year 1 to 5 years
Other payables, including tax and social payables (b) 293 293 -
Unrealized foreign exchange gains totaled €799 million compared to €1,099 million as at December 31, 2018. This item reflects the eff ects derived from the revaluation of foreign currency denominated assets and liabilities at the closing exchange rates. It decreased mainly due to an unfavorable impact of the sterling pound and the US dollar on debts.
■ Directors’ fees allocated to members of the Board of Directors €1.7 million.
The Company had 4 employees and 2 executive off icers at the balance sheet date.
Income tax expense (b) - 909 909 * A positive sign indicates tax benefit.
(b) The corporate income tax benefit amounted to €909 million compared to €762 million in 2018. It mainly included €865 million of tax receivables from members of the tax consolidation group.
Commitments to buy back shares and bonds from Group entities - -
Of which financial guarantees given to Group entities 8,073 6. SENSITIVITY
(2) A 10% depreciation of the Euro leads to a 6.6% improvement in the fair value of debt, a -8.5% deterioration in the fair value of derivatives and a -930% deterioration in the fair value of loans.
I Statutory Auditors’ report on the financial statements (For the year ended December 31, 2019)
This statutory auditors’ report includes information required by European regulation and French law, such as information about the appointment of the statutory auditors or verification of the management report and other documents provided to shareholders.
Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the Audit of the Financial
(EU) No 537/2014 or in the French Code of Ethics (code de déontologie) for statutory auditors.
These investments are initially carried at acquisition cost or their contribution value. At the end of the fiscal year, an impairment allowance is recognized if the value at closing date is less than the acquisition cost.
As described in note 2.5 to the financial statements, the value at closing date corresponds to the value in use and is determined by management on the basis of the share price, the equity value (including unrealized gains), or the future prospects of the subsidiary.
Estimating the value in use of these types of investments requires a significant degree of judgment from management in terms of selecting the measurement methods, depending on the investment in question, and in determining which data and assumptions should be used to estimate the expected profits when these are taken into account in the valuation. The value of future profits is estimated on the basis of the European Embedded Value (EEV) calculations for the Life & Savings segment published by the Group, or similar calculations for the other activities.
For valuations based on forecast data: ■ Assess the appropriateness of the methodology and assumptions used with regard to the Solvency II texts and the
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by law and regulations.
Audit and on June 8, 1994 for Mazars. As at December 31, 2019, PricewaterhouseCoopers Audit and Mazars were in the thirty-first and in the twenty-sixth consecutive year of total uninterrupted engagement, respectively.
The Audit Committee is responsible for monitoring the financial reporting process and the eff ectiveness of internal control and risks management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures.
Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As specified in Article L.823-10-1 of the French Commercial Code (code de commerce), our statutory audit does not include assurance on the viability of the Company or the quality of management of the aff airs of the Company.
■ Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management in the financial statements.
■ Assesses the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report.
However, future events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein.
The information is disclosed in the “Embedded Value and Solvency II Own Funds report 2019” which is available on AXA’s website
• Italy (insurance activities); ■ Asia, consisting of: • Japan (insurance activities and holdings),
• Asia - Direct, consisting of: • Direct Japan (insurance activities),
• Asia Holdings; ■ AXA XL, consisting of: • XL Group (insurance activities and holdings) as acquired on
• Turkey (insurance activities and holdings); ■ Transversal & Central Holdings, consisting of: • AXA Investment Managers,
The split between current engines and high potentials is detailed below: ■ Current Engines: Belgium, France, Germany, Hong Kong, Italy,
States and AB; ■ High Potentials: Brazil, China, Indonesia, Mexico, the Philippines and Thailand.
Derivatives related to invested assets: ■ include all foreign exchange derivatives, except the ones related to currency options in earnings hedging strategies which are included in underlying earnings; ■ exclude derivatives related to insurance contracts evaluated according to the “selective unlocking” accounting policy; and
Account and shareholders’ funds, for which cost at inception, intrinsic value and pay-off flow through adjusted earnings, and only time value flows through net income when there is no intention to sell the derivatives in the short term (if not, flows through adjusted earnings).
Diluted earnings per share (diluted EPS) represent AXA’s consolidated earnings (net of financial charges related to undated subordinated debt recorded through shareholders’ equity, preferred shares and MEBs up to the date of the deconsolidation of EQH), divided by the weighted average number of outstanding ordinary shares, on a diluted basis (i.e. including the potential impact of all outstanding dilutive stock options being exercised, performance shares, and conversion of existing convertible debt into shares, provided that their impact is not anti-dilutive).
MEBs up to the date of the deconsolidation of EQH), divided by the weighted average number of outstanding ordinary shares.
The Return on Equity (“RoE”) is calculated as earnings divided by the weighted average shareholders’ equity. The weighted average shareholders’ equity is based on opening shareholders’
■ for underlying RoE and adjusted RoE*: • reserves relating to the change in the fair value through shareholders’ equity are excluded from the average shareholders’ equity,
TSS/“Undated Subordinated Debts” TSDI) are treated as financing debt, thus excluded from the average shareholders’
• and earnings include interest charges on TSS/TSDI, on preferred shares, and on shareholders’ equity component of the MEBs up to the date of deconsolidation of EQH; ■ for net income RoE: calculation is based on consolidated financial statements, i.e.
This ratio is calculated as per Solvency II, and is equal to the total amount of the Group’s Eligible Own Funds (“EOF”) divided by the
Capital Requirement can be calculated either based on the standard formula or an internal model. The Group is using an internal model.
The Solvency II ratio is estimated primarily using AXA’s internal model calibrated based on an adverse 1/200 years shock. For further information on AXA’s internal model and Solvency II
G/A capital light products: General Account Savings products which, at inception, create more EOF than the economic capital they consume.
(including risk premiums, fees and revenues), net of surrenders, maturities, claims paid and other benefits paid. This definition is applicable to all Life & Savings products as well as Life-like
New business APE represents 100% of new regular premiums plus 10% of single premiums, in line with EEV methodology.
New Business Value Margin is the ratio of: ■ New Business Value representing the value of newly issued contracts during the current year; to
Underlying fees & revenues include: ■ revenues derived from mutual fund sales (which are part of consolidated revenues); ■ loadings charged to policyholders (or contractual charges) on premiums of all Life & Savings products; ■ loadings on deposits received on all Life & Savings products and fees on funds under management for separate account
(Unit-Linked) business; ■ deferred income such as capitalization net of amortization of URR (Unearned Revenue Reserve) and UFR (Unearned Fee
■ other fee revenues, e.g. fees received on financial planning or sales of third party products.
Underlying expenses include the following components: ■ acquisition expenses, including commissions and general expenses allocated to new business; ■ capitalization of acquisition expenses linked to new business: Deferred Acquisition Costs (DAC) and net rights to future management fees only for investment contracts without DPF; ■ amortization of Deferred Acquisition Costs (DAC) and net rights to future management fees for investment contracts without
There are certain material diff erences between the detailed line-by-line presentation in the Statement of Income and the components of Life & Savings Margin Analysis as set out below: ■ for insurance contracts and investment contracts with
In the Margin Analysis, it is allocated to the related margin, i.e. primarily “Investment Margin” and “Net Technical Margin”,
• change in URR (Unearned Revenue Reserve – capitalization net of amortization) is presented in the line “Change in unearned premiums net of unearned revenues and fees” in the underlying Statement of Income, whereas it is located in the line “Fees & Revenues” in the Margin Analysis; ■ for investment contracts without DPF: • deposit accounting is applied. As a consequence, fees and charges related to these contracts are presented in the
Revenues on a separate line, and in Margin Analysis in the lines “Fees & Revenues” and “Net Technical Margin”,
(with the related acquisition expense ratio) and all other expenses excluding claims handling costs (with the related administrative expense ratio). Underlying expenses exclude customer intangible amortization, but include the impact from the changes in VBI
Net inflows: Inflows of client money less outflows of client money.
This Annual Report includes all the elements required to be included in the Board of Directors’ report of AXA established pursuant to
This Annual Report includes all the elements required to be included in AXA’s corporate governance report established pursuant to
Sections Pages 1. Compensation policy of the coporate off icers 147 to 151 2. Corporate off icers’ compensation 120 to 146 3. Directorships and positions held by the corporate off icers 100 to 107 4. Agreements between a corporate off icer or a shareholder of the Company and a subsidiary of the Company 118 5. Procedure for assessment of ordinary agreements concluded at arm’s length terms and conditions 153 6 . Table of the capital increase delegations 378 and 379 7 . Exercise of Executive Management 92 and 93 8 . Composition and conditions of preparation and organization of the Board of Directors’ work 93 to 116 9 . Application the principle of balanced representation of women and men on the Board of Directors 93 and 94; 97 to 99 10 . Board of Directors’ diversity policy 93 to 96 11 . Gender diversity within leadership teams 404 to 405 12 . Limitation of the powers of the Chief Executive Off icer 110 and 117 13 . Corporate Governance Code of reference 152 14 . Conditions for the participation to Shareholders’ Meetings 391 and 392 15 . Anti-takeover provisions 392
Persons responsible, third party information, experts’ reports and competent authority approval 1.1 Indication of responsible persons 443 1.2 Statement by responsible persons 443 1.3 Statement or report attributed to a person as an expert n/a 1.4 Information obtained from third parties n/a 1.5 Statement of approval of the Registration Document by the competent authority n/a 2. Statutory Auditors 2.1 Names and addresses of the auditors, including membership in a professional body 361 2.2 Resignation, removal or re-appointment of auditors 361 3. Risk factors 158 to 175 4. Information about the issuer 4.1 Legal and commercial name 380; 390 4.2 Place and number of registration, and legal entity identifier (LEI) 380 4.3 Date of incorporation and length of life 380 4.4 Registered off ice, legal form, applicable law, country of incorporation, address and phone number of its registered off ice, and website 5. Business overview 5.1 Principal activities 5.1.1 Nature of the operations and main activities 21 to 28 and 40 to 43 5.1.2 New products and/or services 21 to 28 5.3 Important events in the development of the issuer’s business 35 to 39 5.4 Strategy and objectives 8 to 9; 11 5.5 Degree of dependence on patents or licenses, industrial, commercial or financial contracts or new manufacturing process n/a 5.6 Basis for statements made by the issuer regarding its competitive position 31 to 33 5.7 Investments 5.7.1 Material investments completed 36 5.7.2 Material investments in progress or for which firm commitments have already been made n/a 5.7.3 Significant joint ventures and undertakings 241 to 246; 286-290; 454 to 457 5.7.4 Environmental issues that may aff ect the issuer’s utilization of the tangible fixed assets
APPENDIX VIII COMMISSION DELEGATED REGULATION (EU) 2019/980 OF MARCH 14, 2019 – CROSS-REFERENCE TABLE
Items Pages 6. Organizational structure 6.1 Brief description of the Group and the issuer’s position within the Group 6 to 11; 14 6.2 List of the issuer’s significant subsidiaries 241 to 246 7. Operating and financial review 7.2 Operating results 7.2.1 Significant factors materially aff ecting the income from operations 47 to 49 7.2.2 Reasons of the change in net sales or revenues 40 to 43 8. Capital resources 8.1 Issuer’s capital resources 82 to 88; 315 to 317 8.2 Sources and amounts of the issuer’s cash flows 82 to 85; 218 to 219; 292 to 293 8.3 Borrowing requirements and funding structure of the issuer 82 to 88; 315 to 317 8.4 Restrictions on the use of capital resources 82 to 88 8.5 Anticipated sources of funds needed to perform commitments referred to in Item 5.7.2 82 to 85 10. Trend information 10.1(a) Most significant recent trends in production, sales and inventory, and costs and selling price 10.1(b) Any significant change in the financial performance of the Group from December 31, 2019 to the date of the Registration Document 10.2 Known trends, uncertainties, demands, commitments or events that are reasonably likely to have a material eff ect on the issuer’s prospects 11. Profit forecasts or estimates 11.1 Inclusion of profit forecast or estimate in the Registration Document n/a 11.2 Assumptions upon which the issuer has based its forecast or estimate n/a 11.3 Statement that the profit forecast or estimate has been compiled and prepared on a basis which is both: (a) comparable with the historical financial information; (b) consistent with the issuer’s accounting policies n/a 12. Administrative, management, and supervisory bodies and senior management 12.1 Information concerning members of the Board of Directors and senior management 92 to 118 12.2 Conflicts of interests aff ecting administrative, management and supervisory bodies and senior management 13. Remuneration and benefits 13.1 Amount of remuneration paid and benefits in kind granted by the issuer and its subsidiaries 13.2 Amounts set aside or accrued by the issuer or its subsidiaries to provide for pension, retirement or similar benefits 14. Board practices 14.1 Current terms of off ice 98 to 99 14.2 Information about members of the administrative, management or supervisory bodies’
service contracts with the issuer or any of its subsidiaries providing for benefits upon termination of employment 14.3 Information about the issuer’s Audit Committee and Remuneration Committee 114 and 116 14.4 Statement regarding the compliance with the corporate governance regime applicable to the issuer 14.5 Potential material impacts on the corporate governance 99 15. Employees 15.1 Number of employees 119; 402 15.2 Shareholdings and stock options 137 to 143 15.3 Arrangements for involving the employees in the capital of the issuer 131 to 143
APPENDICES A APPENDIX VIII COMMISSION DELEGATED REGULATION (EU) 2019/980 OF MARCH 14, 2019 – CROSS-REFERENCE TABLE
Items Pages 16. Major shareholders 16.1 Identification of major shareholders 375 and 376 16.2 Voting rights of major shareholders 375 and 376; 391 16.3 Ownership and control of the issuer 375 to 377
(EU) No. 537/2014 18.3.2 Other information audited by the auditors 154 to 155; 429 to 432; 442 18.3.3 Sources of the financial information not extracted from the issuer’s audited financial statements n/a 18.4 Pro forma financial information n/a 18.5 Dividend policy 18.5.1 Issuer’s policy on dividend distributions and restrictions thereon 16; 391 18.5.2 Amount of dividend per share for each financial year for the period covered by the historical financial information 18.6 Legal and arbitration proceedings 362 to 364 18.7 Significant change in the issuer’s financial position 88 to 89; 365 19. Additional information 19.1 Share capital 19.1.1 Subscribed share capital 375 19.1.2 Shares not representing capital n/a 19.1.3 Treasury shares held by the issuer, on its behalf or by its subsidiaries 375 to 376 19.1.4 Convertible, exchangeable securities or securities with warrants 378 19.1.5 Acquisition rights and/or obligations over authorized but unissued capital or an undertaking to increase the capital n/a 19.1.6 Options on share capital of the members of the Group n/a 19.1.7 Historical information on share capital 376 19.2 Memorandum and articles of association 19.2.2 Rights, preferences and restrictions attaching to each class of existing shares 391 to 392 19.2.3 Provisions likely to defer, delay or prevent a change in control of the issuer 392 20. Material contracts n/a 21. Documents available 380
Information disclosed in accordance with Annex 1 of Commission Delegated Regulation (EU)
as the competent authority under Regulation (EU) 2017/1129 without prior approval pursuant to Article 9 of Regulation (EU) 2017/1129; and (b) the universal Registration
Document: ■ the following sections of AXA’s Registration Document for the year ended December 31, 2018 (the “2018 DDR”), the
French version of which was filed with the AMF on March 11, 2019 under number D.19-0130 and is available on the AMF’s website within the AMF’s Decisions and Financial Disclosures
December 31, 2018 and the Statutory Auditors’ report thereon, respectively, on pages 215 to 369 and pages 370 to 376; ■ the following sections of AXA’s Registration Document for the year ended December 31, 2017 (the “2017 DDR”), the
multimedia?docId=037df515-e0bf-4744-909f-2733858ff 676&fa mille=BDIF&bdifId=5410-81.D_D.18-0145: (a) Section 2.2 “Operating Highlights” on pages 30 to 33; (b) the report of the Board of Directors of AXA for the year ended December 31, 2017, including all sections listed in
The non-incorporated parts of the 2017 DDR and the 2018 DDR
Article L.451-1-2 of the French Monetary and Financial Code (Code monétaire et financier) as well as in Article 222-3 of the AMF General
Report of the Statutory Auditors on the financial statements of AXA, the parent Company 466 to 469