AXA : 2019 Integrated Report

We act for human progress by protecting what matters

Being a partner to108 million customersmeanslisteningto help them achieve their goals,being inspiredto invent new ways forward for the future andtaking actionday by day with all AXA's experts.

ThisIntegrated Reportexplains how webring solutions to our customersandmeasure our impacton society to promote progress.

Summary

Interview

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Our role

_The new face of health10insurance

_Supporting female24entrepreneurs

_Companies in the face of38risk transformation

_Agriculture: the keys to52climate resilience

Our impact

_Our purpose

_Our profession

_Our sustainable value creation

_Our 2019 financial results

_Our environmental impact

_Our social impact

_Understanding, anticipating and managing risks

_Entering a new phase in our climate strategy

_Co-building with our stakeholders

_Drawing on strong governance

_Driving strategic momentum

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Every year, AXA's Integrated Report is designed to bring the most comprehensive vision possible of the value created by the Group for its customers and shareholders, society and the planet. It presents the items in its financial and extra-financial reporting for the last year, along with information on the Group's perspective, strategy and actions.

Largely produced in the last few months of 2019 and the first quarter of 2020, this fourth report has been published at a time when the Covid-19 epidemic continues to affect every continent worldwide. This global crisis is presenting health, economic and financial challenges on an unprecedented scale.

AXA Group's priority has been to guarantee the safety of its 160,000 employees and enable them to continue assisting its 108 million customers worldwide.

Exceptional measures have also been taken to support those of our customers who have been most impacted financially by the lockdown, particularly craftworkers, tradespeople and small companies. As a global leader in the health sector, we have done everything in our power to respond to this health emergency by extending coverage for healthcare professionals, mobilizing our medical networks and e-health services, and providing financial and material support to caregivers in many countries.

In the longer term, true to our commitments as a responsible company, we want to play an active role in post-crisis recovery and the rebuilding of our economies and the society. Through the AXA Research Fund, the Group has committed to supporting research on infectious diseases and the Covid-19 virus. AXA works with other players in the industry and with governments to define a public-private insurance scheme able to respond to challenges such as the ones the world has been facing in the last months.

More than ever, this crisis confirms what the Group has always striven for: protecting what matters most for society.

To find out more about the Group's action during the Covid-19 crisis, please visitaxa.com.

Interview

Thomas Buberl

Chief Executive Officer of AXA

Denis Duverne

Chairman of the Board of Directors of AXA

"2019 enabled us to finalize the strategic shift we set in motion in 2018. Today, AXA is a group focused on technical risks that enable more frequent interactions with our customers."

Thomas Buberl

What were the highlights of 2019 for AXA?

Thomas Buberl:The year was marked by some significant progress in the implementation of our Ambition 2020 strategy. In 2019, we focused on precise objectives to generate more growth in our target

" This transformation is consistent with our DNA as an innovative, committed and visionary global insurer."

Denis Duverne

segments, simplify the Group's scope and maintain robust results. AXA's dynamic growth was accompanied by profitability. We achieved underlying earnings of €6.5 billion in 2019. And despite the low interest rate environment, we demonstrated the strength of our balance sheet, in particular with a solvency ratio that increased 5 points to 198% at December 31, 2009.

How is AXA doing now that 2019 has come to a close?

T. B.:The past year enabled us to finalize the strategic shift we set in motion in 2018. We've now completely withdrawn from our life, savings and asset management business in the United States.

This is a major step that will make us even less sensitive to financial risk. The Group has further reduced debt, in line with our commitment.

At the same time, we've made good progress with the integration of XL's businesses into AXA Group. Commercial synergies are starting to bear fruit. However, we mustcontinue to limit the volatility of our AXA XL division, which was hit by natural disasters in 2019, and we have taken steps in this direction.

Today, AXA is a group focused on technical risks that enable more frequent interactions with our customers. Our profile is fully aligned with the objective we've set with Ambition 2020: to transition from a payer role to be a partner for our customers.

Denis Duverne:This transformation is consistent with our DNA as an innovative global insurer that is committed to its stakeholders, and it is visionary in the sense that it opens up new territories for us. In sectors like healthcare, climate risks and new forms of entrepreneurship, there is enormous demand and our solutions can bring real value to our customers. Our aim has always been, and will remain, to combine strong business performance with valuable solutions and a long-term vision of our role as an insurer for the benefit of customers and society.

Do these three criteria help you identify growth sectors for the Group?

T. B.:Yes, absolutely. We're moving towards sectors where the major economic, societal and environmental transitions present major challenges. That's where we can be useful and go beyond our role as an insurer to position ourselves as a partner for our customers. If we look at the healthcare sector, in a decade, medical research has made major progress and connected objects have largely changed the relationship between patients and their care pathways. The downside is that treatment is often more expensive and health systems more complex. As an insurer, we have a natural role to play in this equation, to better connect our customers with medical services. This business offers enormous potential for innovation (for example, with telemedicine) and growth, by extending coverage to new services and expanding our healthcare offering.

With AXA XL, you've also boosted your presence in the corporate sector.

T. B.:Here too, our wider expertise as an insurance partner can make all the difference. Companies of all sizes are facing new risks. They need us to help identify,

"Our credibility relies on our customers' recognition. Their trust enables us to make ambitious commitments to society."

Thomas Buberl

address and avoid risks. When you add our knowledge of risk science, the vast volume of data at our disposal and our range of specialties broadened through the integration of AXA XL, we're among the best placed to meet the challenges faced by the business players. And because we're aware their issues are increasingly complex, we developed our risk consulting business in 2019 to offer tailored advice and solutions for corporate customers.

D. D.:This intrapreneurial, customer-centric culture is very strong within the Group, in every business line and every role. It's one of the forces that enable us to develop solutions connected to the real needs of society and our stakeholders.

T. B.:We see this in our customer satisfaction scores, which rose in all of our regions in 2019. For us, this indicator is not just a formality.

It enables us to confirm the value of our products and services and ensure that the priority we make of customers is not an empty promise but a reality reflected in the behavior of every employee. We're all conscious that our credibility is based on our customers' recognition. Their trust enables us to make ambitious commitments to society.

AXA also claims to bring value to society as a whole. How would you describe this contribution?

D. D.:Given its sound understanding of risks, AXA has

"Given its sound understanding of risks, AXA has two main responsibilities: to share its knowledge to help make society more resilient and to lead the way with pioneering and impactful commitments."

Denis Duverne

two main responsibilities. The first is to share its knowledge to help make society more resilient to the key climate, demographic and health transitions of the future. The second is to lead the way with pioneering and impactful commitments. Our complete withdrawal from the tobacco industry is a good example.

As a health insurer, we know that cigarettes and tobacco products currently kill more than 6 million people every year and that this figure should reach 8 million by 2030.

We were therefore one of the first companies to divest from the tobacco industry and promote a collective movement by signing the Tobacco-Free Finance Pledge in 2018.

AXA has also announced very ambitious climate measures…

T. B.:Our knowledge of risks convinced us very early on of the need to take action to limit climate change. In 2015, we made a numberof strong climate commitments and helped put this issue at the top of our industry's collective agenda. Today, I'm convinced we must go even further. That's why in 2019, we committed to aligning our investments with the Paris Agreement, limiting their climate warming potential to +1.5°C by 2050. We're also going to achieve our complete divestment from coal by 2030 in Europe and OECD countries, and by 2040 in the rest of the world. Finally, we want to drive the entire economy's transition, in particular by creating transition bonds, a new asset class that will help finance companies move towards more sustainable business models.