OREANDA-NEWS. The range of 3% to 7% underlying earnings per share CAGR indicated in the headline KPIs reflects cautious assumptions for interest rates with an annual impact ranging between -5% (corresponding to interest rates remaining stable at current levels over the next 5 years) and -1% (reflecting a modest rise in interest rates over the next 5 years). A series of measures under management control (e.g. efficiencies, margin improvement, topline growth, M&A) are targeted to contribute 8% underlying earnings per share CAGR, more than offsetting interest rates headwinds.

In addition to the headline KPIs, the following targets are announced in the presentations today:

  • Savings NBV CAGR of 3-5% for mature markets with a stable business mix over 2015-2020E
  • Health revenues CAGR of 3-5% over 2015-2020E
  • Protection & Health loss ratio at 80% by 2020E
  • Protection & Health all year combined ratio at 93-94% by 2020E
  • Euro 350 million additional Life and Savings underlying earnings from inforce initiatives by 2020E
  • Property & Casualty commercial lines revenues CAGR of 3-5% over 2015-2020E
  • Property & Casualty current year loss ratio at 70% by 2020E
  • Property & Casualty all year combined ratio at 94-95% by 2020E
  • Ca. -1 point of Group loss ratio coming from Smart Data initiatives over 2015-2020E
  • Asia underlying earnings CAGR of 10-12% over 2015-2020E

US Department of Labor fiduciary rule:

Management updates its estimate of the potential impacts from the Department of Labor fiduciary rule on new sales of AXA US to ca. -10% of AXA US APE in 2017 with an expected diminishing impact thereafter following mitigating actions.