Post on 26-Mar-2015
Suduiraut - June 11, 2004
AXA Belgium
Financial Protection in Action
Alfred Bouckaert, CEO AXA Belgium
Suduiraut - 10 & 11 June 2004 SLIDE 2
1 : Evolution of the Belgian Market
2 : AXA in Belgium
3 : Results summary
4 : Strategic priorities
5 : Conclusion
Contents
Suduiraut - 10 & 11 June 2004 SLIDE 3
0
5.000
10.000
15.000
20.000
25.000
30.000
1996 1997 1998 1999 2000 2001 2002 2003 (e)
Gross Premiums (mios €)
P&C Workers' Compens. Individual Life Group Life
CAGR : 4,1%
CAGR : 25,6%
CAGR : 7,6%
CAGR : 9,5%
High savings rate has fueled a strong growth in Life and Savings
Suduiraut - 10 & 11 June 2004 SLIDE 4
Belgian distribution landscape has changed (Life + P&C turnover)
ClientsClients
Brokers
37%
Bank channel
35%
Tied Agents
8%
Mutual
13%
Direct
7%
1.488400
1.0241.2681.314
6.066
8.230
1.7022.841
7.907
310%
672%
30%124%
36%
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
Brokers TiedAgents
Mutual Bank Direct
GW
P (
Mio
€)
0%
100%
200%
300%
400%
500%
600%
700%
800%
Ev
olu
tio
n
1994 2002 Evolution
Insurance GWP evolution 1994/2002 : 10.035/22.169 mio € (+121%)
Source: UPEA
Suduiraut - 10 & 11 June 2004 SLIDE 5
The Belgian insurance market has undergone considerable concentration
Top10 = 74% of the market
Top10 = 85% of the market
x 1.000.000 €
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
1996 2002
Suduiraut - 10 & 11 June 2004 SLIDE 6
Furthermore, Belgium has become a bank insurance market
Fortis (AG, Générale, CGER)
ING (BBL, La Patriotique, ING)
KBC (KB, ABB, CERA)
Dexia (Dexia, Artesia, BACOB, DVV, Corona)
AXA (AXA Belgium, Anhyp, IPPA, Royale Belge)
AXA = distribution through self employed brokers and bank agents
Retail banking only
Suduiraut - 10 & 11 June 2004 SLIDE 7
1 : Evolution of the Belgian Market
2 : AXA in Belgium
3 : Results Summary
4 : Strategic Priorities
5 : Conclusion
Contents
Suduiraut - 10 & 11 June 2004 SLIDE 8
Our mission: Financial Protection
Asset protection Auto, home, property, liability
Asset accumulation
Retirement
Estate
planning
Life stages
Annuities
Life protection
Asset management
Investments Savings Consumer credit
MortgagesCredit cards
Sourced bank products
Customer needs
Risk management Financial Planning
Advice
Suduiraut - 10 & 11 June 2004 SLIDE 9
1999 - 2001 : merger of AXA in Belgium
Suduiraut - 10 & 11 June 2004 SLIDE 10
AXA Belgium distribution channels
Specialized Brokers: for large and medium-sized Companies (300)
General Brokers: for individuals and self-employed (12,000 - 2,700 professionals)
Bank agents (950)
La Poste
Viaxis : social finance
Partnerships : car manufacturers, banking partners, ...
Suduiraut - 10 & 11 June 2004 SLIDE 11
2002 : integration into a financial protection group
Suduiraut - 10 & 11 June 2004 SLIDE 12
A client facing organization
Individual ClientsIndividual Clients
Bank agentsBank agents BrokersBrokers BrokersBrokersOther channels
Car Manufact., Viaxis, ...
Other channels
Car Manufact., Viaxis, ...
Corporate ClientsCorporate Clients
DirectDirect
Support functions in synergySupport functions in synergy
ProductManagement
Bank Products
ProductManagement
Bank Products
ProductManagementLife & Invest
ProductManagementLife & Invest
ProductManagement P& - Indiv. &
Small businesses
ProductManagement P& - Indiv. &
Small businesses
ProductManagement
Medium / Large Businesses
ProductManagement
Medium / Large Businesses
Back OfficeInsurance- Indiv. & Small businesses
Back OfficeInsurance- Indiv. & Small businesses
Back OfficeBank
Back OfficeBank
Back OfficeInsurance-Corporate Lines
Back OfficeInsurance-Corporate Lines
Suduiraut - 10 & 11 June 2004 SLIDE 13
A new retail organization became operational on January 1, 2004
Two main channels: bank agents & brokers
One sales management broken down per product at the sales level
integrated at area level with efforts and staff focusing on the best producer
Suduiraut - 10 & 11 June 2004 SLIDE 14
1 : Evolution of the Belgian market
2 : Organisation of AXA in Belgium
3 : Results Summary
4 : Strategic Priorities
5 : Conclusion
Contents
Suduiraut - 10 & 11 June 2004 SLIDE 15
AXA is a leader of the Belgian market
Market Market Share 2002 Volume 2002
#1 P&C 18.0% 7 873 M€
# 1 in Motor 20.2% 2 735 M€
# 2 in Property 16.4% 1 656 M€
# 1 in Worker comp 23.5% 1 011 M€
# 1 in Liability 19.4% 614 M€
#5 LIFE 11.8% 14 432 M€
# 4 Individual Life 11.5% 11 089 M€
# 3 Group Life 12.8% 3 342 M€
#2 P&C + LIFE 13.9% 22 305 M€
Suduiraut - 10 & 11 June 2004 SLIDE 16
We have stabilized our market share in P&C ...
Wri
tte
n p
rem
ium
s
Gro
wth
Global growth of the Belgian market 2000 - 2002 : + 10,9%
2002 : size of the market 7 873 M€
Source: UPEA
25,4%15,4%
6,5%
7,8%
60,5%
-10,0%
0
200
400
600
800
1.000
1.200
1.400
1.600
AXA Fortis SMAP KBC Winterthur AGF
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2000 2001 2002 delta 2000-2002
mio €
Suduiraut - 10 & 11 June 2004 SLIDE 17
… significantly improving our combined ratio and our underlying earnings
Combined ratio has improved with 10 points between 1999 and 2003.
Underlying earnings doubled between 2002 and 2003, to € 118 mio adjusted earnings.
Suduiraut - 10 & 11 June 2004 SLIDE 18
In Life we generated growth and improved earnings to € 94 mio in 2003
Wri
tten
pre
miu
ms
Gro
wth
Global growth of the Belgian market 2000 - 2002 : + 12,1%
2002: market size 14 432 M€
Source: UPEA
-21,4%
49,6%
127,4%
-24,4%
16,8%
91,2%
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
5.000
Fortis KBC SMAP ING AXA Dexia
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
2000 2001 2002 delta 2000-2002
mio €
Suduiraut - 10 & 11 June 2004 SLIDE 19
In Life, premiums growth is significant and outperforming traditional insurers and bank-insurers
10.064
12.870 13.29414.432
18.138
1999 2000 2001 2002 2003 (*)
Belgian marketCAGR : 16%
907
1.129
1.742 1.689
2.125
1999 2000 2001 2002 2003 (*)
AXA Belgium
CAGR : 24%
Suduiraut - 10 & 11 June 2004 SLIDE 20
We renewed growth in bank savings accounts and ...
273
677724
2001 2002 2003
Net New Money
In € Mio
4.3485.025
5.749
2001 2002 2003
AUM Savings accounts
Suduiraut - 10 & 11 June 2004 SLIDE 21
… doubled our market share in mortgage loans (12% in 2003 vs. 5% in 2001)
454
1.926
377
941
212210176195
273248217141
0
500
1000
1500
2000
2000 2001 2002 2003
Mortgage loans Consumer loans Commercial loans
Mio €
Suduiraut - 10 & 11 June 2004 SLIDE 22
Expenses are being reduced ...
689
647620
2001 2002 2003
- 10% over 3 years
Economic expenses (in Mio €)
Suduiraut - 10 & 11 June 2004 SLIDE 23
... while strictly controlling FTE evolution
Suduiraut - 10 & 11 June 2004 SLIDE 24
70%
58%
42%40% 40%
23%
17%14% 12%
10% 9% 8% 8% 7% 7% 6% 5% 5% 4% 4% 3% 2% 1% 1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
TOM also spontaneous spontaneous
spontaneous 70% 58% 42% 40% 40% 23% 17% 14% 12% 10% 9% 8% 8% 7% 7% 6% 5% 5% 4% 4% 3% 2% 1% 1%
also spontaneous 45% 47% 28% 27% 32% 17% 16% 12% 8% 7% 8% 8% 6% 6% 6% 4% 5% 4% 3% 4% 3% 1% 1% 1%
TOM 25% 11% 15% 12% 8% 6% 2% 2% 4% 2% 1% 1% 1% 1% 1% 1% 0% 1% 1% 0% 0% 0% 0% 0%
Fortis Dexia AXAKBC/ CBC
ING EthiasArgen
taBBL
OMOB/
SMAP
DVV Verze- kering
AGBACO
BM&N P&V
Winterthur
AGF-Assubel
Bank van de
Generali
Centea
Deutsche Bank
Vader-land-sche
Verzekeringen De
UABArtesi
a
Top of mind and spontaneous awareness (april Top of mind and spontaneous awareness (april 2004)2004)
Suduiraut - 10 & 11 June 2004 SLIDE 25
Perceived activities AXA vs competition
0
10
20
30
40
50
60
70
80
90
100
Fortis Dexia KBC ING AXA Ethias
Don't know
insuranceboth
bank
Suduiraut - 10 & 11 June 2004 SLIDE 26
1 : Evolution of the Belgian Market
2 : AXA in Belgium
3 : Results Summary
4 : Strategic Priorities
5 : Conclusion
Contents
Suduiraut - 10 & 11 June 2004 SLIDE 27
Priorities in AXA Belgium’s Strategic Plan
Increase growth
Maintain profitability
Improve efficiency
Suduiraut - 10 & 11 June 2004 SLIDE 28
Increase growth in Life and Savings
Double the bank’s size
Increase loyalty
Develop cross-selling with bank and P&C database
Suduiraut - 10 & 11 June 2004 SLIDE 29
Maintain profitability in P/C
Retention of existing base
Focus on best risks (seniors, geographical focus…)
Further improve claims management
Further streamline processes
Suduiraut - 10 & 11 June 2004 SLIDE 30
Improve efficiency
A continuous process
Further cut cost base
Complete systems upgrading
Suduiraut - 10 & 11 June 2004 SLIDE 31
An integrated customer policy for growth and loyalty
Our growth strategy is mainly based on :Our growth strategy is mainly based on :
customer loyaltycustomer loyalty
growth through cross-sellinggrowth through cross-selling
Suduiraut - 10 & 11 June 2004 SLIDE 32
Significant potential of our customer base
AXA Belgium owns 50 % of Belgian householdsAXA Belgium owns 50 % of Belgian households
108.915
Credits & transactionalBank312.172
Risk 1.473.700Life &
Savings Bank
702.28396.380 41.255
229.683267.305 1.093.847
65.622Total : 1.903.007
Suduiraut - 10 & 11 June 2004 SLIDE 33
Our potential
Cross-selling rate is only 1,5 contractsCross-selling rate is only 1,5 contracts..
1 product group
2 product groups
3 product groups
4 product groups
5 product groups
Cross-selling rate: number of AXA products hold by household
57% 21% 10% 10% 2,6%
0% 20% 40% 60% 80% 100%
num
ber
of
Pro
duct
gro
ups
Suduiraut - 10 & 11 June 2004 SLIDE 34
As you sow, so you reap
1st step : Customer loyalty1st step : Customer loyalty
Suduiraut - 10 & 11 June 2004 SLIDE 35
763,632 Total customer base Motor
342,793 Motor Wildcard families
Motor Wildcard (November 2003)
Target : Bonus Malus 0 (best level) for two years by AXA
Goal : A 30 % reduction in lapse rates
on “good risks”
Action : The next claim is free
Suduiraut - 10 & 11 June 2004 SLIDE 36
691,000 Total customer base Home
500,000 Home Wildcard families
Home Wildcard (March 2004)
Target : AXA customers with no claim in
the past two years
Goal : Cut lapse rate by 20 % on
« good risks »
Action : € 200 cash, if claim > € 1.500
Suduiraut - 10 & 11 June 2004 SLIDE 37
702,283 L & I customer base
65,177 Mass Affluent (AUM > €50,000)
Mass Affluent
Target : AXA customers with more than
€ 50.000 assets under management
Goal : Increase level of Mass Affluent
‘AUM of 5 %
Action : Free banking account + free banking cards Yearly financial check-up Services & relationship advantages
Suduiraut - 10 & 11 June 2004 SLIDE 38
As you sow, so you reap
2nd step : Cross-selling2nd step : Cross-selling
Suduiraut - 10 & 11 June 2004 SLIDE 39
195,000 Wildcard customers do not have Home insurance
342,793 Motor wildcard families
From Motor to Home
Target : Motor Wildcard without Home
Goal : 10 % cross-selling
Action : 2 months free on purchasing Home
insurance Home Wildcard if no claim in 2 years
Suduiraut - 10 & 11 June 2004 SLIDE 40
« Good risks » targets on which cross-selling actions will be implemented
763,632 Motor customer families
691,000 Home customer families
702,283 L & I customer families
65,177 Mass Affluents (exp. > €50,000)
Cross-selling targets
500,000 Home Wildcard families
342,793 Motor Wildcard families
2 nd step: L&I customer families who over 45 years
Suduiraut - 10 & 11 June 2004 SLIDE 41
HIP concept for our VIP customers
Happy Drive
Happy Home
Happy Life Happy You
HAPPYIMPORTANT
PEOPLEHIP
Differentiation:
1. Wildcard
2. Confidence guarantee
Differentiation:
1. Wildcard
2. Confidence guarantee
Differentiation:
1. Wildcard
2. VIP product (in co-operation with AXA Art)
Differentiation:
1. Wildcard
2. VIP product (in co-operation with AXA Art)
Differentiation:
1. Pension build-up & management programme
Differentiation:
1. Pension build-up & management programme
Differentiation:
1. MA programme AUM > 50,000: products, services & relationship advantages
Differentiation:
1. MA programme AUM > 50,000: products, services & relationship advantages
Suduiraut - 10 & 11 June 2004 SLIDE 42
1 : Evolution of the Belgian Market
2 : AXA in Belgium
3 : Results Summary
4 : Strategic Priorities
5 : Conclusion
Contents
Suduiraut - 10 & 11 June 2004 SLIDE 43
Conclusion: AXA Belgium, a clear example of Financial Protection
A fully integrated retail model
Maximizes distribution reach
Customer-centric and not based on products as in the past
Allows significant economies of scale
Growing underlying earnings, stable market share in P/C, growth in Life and Savings
Brand awareness increases and is essential in what is customer driven