Half Year 2021 AXA SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kamran Hossain - RBC Capital Markets, Research Division - Analyst : Three questions for me. First one is on the flood losses. Thanks for the, I guess, the preliminary estimate that you gave this morning. To what extent is your loss capped at EUR 400 million or close to EUR 400 million? And is it safe to assume, given your confidence in the AXA XL UE for 2021 that these losses really sit elsewhere in the business? The second question is just a clarification on the positive COVID development that you've talked about in AXA XL that you put into the, I guess, the bulk IBNR. Can you just quantify how much that was or how much that would have benefited or how much that cost the combined ratio in the first half? And the third question is given your very strong capital position with further benefits to come from AXA Bank Belgium, what do you have lined up for the surplus at the moment? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 02, 2021 / 9:00AM, AXAF.PA - Half Year 2021 AXA SA Earnings Call

Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : So these are amazing results, so really, really well done. I actually have four questions. I'm really sorry. You've raised the guidance as far as I can see on the number of things, reserve releases, kind of Life margin, top line. So I'm wondering why didn't you raise the guidance for the 7%. The second is on the reserving itself. And my guess is you're reducing the best estimate -- how to say it? The Solvency II earnings, so the 12%, is just EUR 2.9 billion and your reported underlying earnings is EUR 3.6 billion. So I'm just thinking that maybe the reserve releases mean that you're actually reducing the total best estimate number. But I don't know, it's a question. And the third one is on the loading. So you're above the target range at the half year for your cat loading both at AXA XL and in Europe. And in Europe, of course, we've got these extra flood losses of EUR 400 million, which I guess, for the second half is about 2 points. And I'm just wondering whether you're maybe thinking of raising these. And then yes, I'll stop there, sorry to take up too much time. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 02, 2021 / 9:00AM, AXAF.PA - Half Year 2021 AXA SA Earnings Call

Question: Michael Igor Huttner - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Yes. It's nothing, I mean, but the -- I'd say the heavy cat part of the year, the second half, right? So that's when you get hurricanes and typhoons and stuff like that. And that's also when you get those hailstorms or whatever in Europe, right? And we've obviously handed out the flood loss figure. So to say slightly above at half year, I'm kind of thinking it's not as comfortable maybe.