AXA Aktie

Good morning, and thank you for standing by. Welcome to the AXA First Quarter 2026 Activity Indicators Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Anu Venkataraman. Please go ahead.

Good morning, and welcome to AXA's First Quarter 2026 Activity Indicators Call. Our Group CFO, Alban de Mailly Nesle, will walk you through the highlights, after which we'll be happy to take your questions. Alban?

Thank you, Anu. Good morning to all. Thank you for joining the call today. So let me start with the key highlights. As you saw, we delivered a strong performance in the first quarter of '26. Total revenues increased by 6% to EUR 38 billion, well balanced across lines of business and geographies. And our Solvency II ratio at 211% reflects the robustness of our balance sheet after the end of the grandfathering period of January 1.

In the quarter, the group's financial strength was further affirmed by the decision from S&P to upgrade its ratings from AA- to AA. Let me now go through each line of business, highlighting what we expect for the year, starting with P&C. P&C revenues were up 4% with a healthy balance of volume growth and pricing in both Commercial and Personal Lines. In Personal Lines, revenues were up 7%, reflecting continued strong momentum across all geographies. We have delivered strong volume growth from expanding the customer base with 1.2 million net new contracts in Retail, Motor and Household, particularly in France and Europe in a favorable pricing environment with a 4% price effect over the period.

And we expect pricing to remain conducive and continue to see good opportunities to grow. Commercial lines grew by 3% with both higher volumes and positive price effect. At AXA XL Insurance, revenues grew by 2%, driven by volumes. In Q1, the renewal mix is skewed towards international business where pricing is holding up. On the overall book, pricing is stable versus last year. We continue to actively manage the cycle, growing in the lines where pricing meets our return hurdles. So we grew volumes in property with the business remaining at high profitability levels despite increased pricing pressure with rates on renewals decreasing by 4%.

In casualty, pricing on renewals was up 4%. And there, we are focused on customer retention and on maintaining our overall exposure. Specialty lines also grew by 1% with stable pricing at good profitability levels. In financial lines, renewal rates decreased by minus 2.5%, and we continue to be highly selective. So overall, pricing was stable in Q1. We believe we have room to grow XL sales earnings in 2026 through a combination of selective top line growth, combined with lower reinsurance prices, notably in property, active expense management and higher reinvestment yields.

In Commercial Lines ex XL, revenues were up by 4%. So this was driven by good price dynamic in Europe and in France with overall pricing at plus 3%. We also delivered volume growth, particularly in France, while in the U.K., market conditions are softer, and we are disciplined on growth. Outside the U.K., we expect the market to remain disciplined and to expand our margins as pricing is earned through. And finally, in reinsurance, revenues were down by 7%. Renewal pricing was down 3%, a good outcome in the current market. And we remain disciplined, and therefore, we have reduced volumes.

On nat cat, group nat cat experience in the first quarter was slightly better than the prorated annual cat budget with benign experience at AXA XL and despite losses in France from both Storm Nils and Goretti of EUR 0.1 billion overall. It's only the first quarter, so we maintain our annual nat cat budget of 4.5 points of combined ratio for the year. And finally, let me just say a word on inflation. So we closely monitor it, obviously. And you know that most of our P&C contracts are annually renewable. So that gives us the ability to adjust pricing based on market conditions.

In Commercial Lines ex XL, a significant portion of our premiums have some direct or indirect indexation to inflation and pricing conditions remain favorable. In XL, in casualty and to a lesser extent, in financial lines, social inflation is decoupled from general inflation. And therefore, the book that is mainly impacted by inflation is property, which represents less than 30% of the business and where underlying assets are revalued every year.

And in retail, as you saw, pricing conditions remain favorable. I would also add that the context is much better than in 2022. At that time, inflation had started before the Ukraine war and was compounded by it. So inflation will be impacted if the war in Iran lasts, but the impact is not immediate.

So in summary, in P&C overall, with these Q1 results, we're confident in our ability to deliver top line growth and margin improvement over the year. Now moving to Life & Health. In Life & Health, premiums were up 8% to EUR 16.5 billion, driven by strong performance. In the long-term business, premiums grew 9%, reflecting strong sales momentum across Unit-Linked, general account and protection. In short-term Protection & Health business -- sorry, revenues were up 6%, mainly driven by favorable price effects in Health across geographies as well as expansion in margins, including from the progressive recovery in Mexico, reflecting the actions we took to offset the VAT change.

We had strong net flows at EUR 2.7 billion versus EUR 2.5 billion in Q1 '25. And as you know, that will fuel growth in CSM and earnings over time. And we, like in P&C, remain confident in our ability to maintain this momentum. New business. So we grew new business CSM by 4% and notably more than 5% in life. This growth was driven by strong volumes in Savings and Protection with an 8% increase in PVEP and good margins. NBV was up 1% due to lower sales and adverse mix in our JVs in Thailand and China, offsetting the growth in new business CSM.

Moving on to Solvency II. So we continue to operate at a high Solvency II ratio that stands at 211% at the end of March. As you know, on January 1, our solvency ratio was 215% following the end of the grandfathering period that represented a minus 10 points impact versus December 31, 2025. On top of this impact, our ratio was down 4 points in the first quarter of the year, plus 7 points from normalized capital generation, minus 6 points of the accrued foreseeable dividends and annual share buyback, and also minus 4 points from unfavorable impacts from financial markets, reflecting notably higher inflation expectations and increased volatility of both equity and interest rates.

And I remind you that we estimated the Solvency II revision benefit at 17 points increase in our Solvency II ratio, and that will come into effect next year. Before moving to the Q&A, so let me conclude on how AXA is positioned in the current environment. We are off to a strong start this year, consistent with our ambition. We delivered strong growth in a conducive pricing environment in retail and commercial ex XL P&C. We captured growth opportunities at AXA XL in lines where our return hurdles are met, and we have a very strong momentum in Life & Health.

That's the benefit of our diversified business model because across lines of business and geographies, this model is built to deliver predictable earnings growth. And in the current volatile environment, we have a strong balance sheet with a solid 211% Solvency II ratio, prudent reserving and a disciplined asset allocation with high-quality assets and a low exposure to below investment-grade private credit on which we gave additional disclosure in our 2025 full year results presentation.

And the strength of our balance sheet, as I said at the beginning, was recently reaffirmed by S&P's decision to upgrade our ratings from AA- to AA. So all of this gives us confidence to deliver our 2026 UEPS growth at the top end of our target range of 6% to 8% and to sustain growth beyond 2026.

I'm now happy to answer your questions.

[Operator Instructions] The first question is from David Barma, Bank of America.

Firstly, on Commercial Lines, please, on the volume growth, could you please explain where you see opportunities to grow right now. And within that, if you could please touch on the appeal of the casualty space, where it appears that the pricing is now starting to turn? And then linked to that, but on pricing, thanks for your comments in the introductions. Are you seeing an inflection in pricing in U.S. financial lines? And do you see a change in the attractiveness of the admitted versus the E&S market at this stage, which it appears we've been witnessing in the last few months? And then lastly, on personal lines. So pricing was good again in Q1, but there are several markets where your data suggests you might be at or slightly below inflation levels. So in the current macro context, do you think we might see a pickup in pricing across personal lines even if investment income is also attractive.

Thank you, David. So commercial lines, growth opportunities in casualty, that was your first question. So we should always remember that half of our Commercial Lines business is ex XL. That's our European and French business mostly. And there, we see good pricing and with 3% on average, 3% increase. And so we see room to grow there, except, as we said, in the U.K., which is softer and across all lines of business.

So I guess your question was more on the XL part. And on this, look, what we see is very clearly that in property, despite the fact that pricing is down by 4% overall, it's still very good business. And therefore, we have room to grow there. Casualty prices are up 4%. That's now slightly below the loss trend. But there again, we believe that given the current profitability, we can carry on growing. So then the question is more -- and specialty. Specialty is 20% roughly of our XL book. And there, pricing is broadly stable. It might even increase depending on where the crisis in the Gulf goes, and it's profitable. So we see also room to grow there.

On financial lines, that's where prices have been down for now a number of years. But we see some kind of bottoming out for the financial lines. Today, 74% of our business in financial lines is either flat or increasing in terms of pricing. So there are still a part which is decreasing. But I think at this stage, we see the end probably of that soft cycle. So we need to be vigilant, disciplined. But on this, this is a place where we believe that over time, we could grow again. Then on pricing, so I answered, I think, on financial lines, then you say E&S. E&S, it's both property and casualty, and it's both large and mid-market.

So typically, what you see in the admitted market, you see it in large property E&S in the sense that there is pressure on this. But the mid-market part resists better. And on the casualty side, you see the same as on the admitted business, which is still price increases, but a bit below loss trend. On Personal Lines, I would say, at this point, I wouldn't say that our pricing is below inflation. I think first, inflation is slightly different than general inflation because you know that it's about spare parts and labor and so on, but it's very correlated, obviously. And we take measures year after year to contain that specific inflation.

So at this stage, I believe that there is sufficient pricing to see margin expansion in personal lines this year. We'll see how inflation goes. But given the current context, it might well be that inflation would help that market to remain hard. That's the way I would characterize it.

The next question is from Farooq Hanif at JPMorgan.

Just to go back on volumes. If you take out Nobis and Prima, I mean, the overall volume growth looked like roughly 2% in 1Q. But if you take out those 2, what was the growth? And what do you think in percentage terms, you could maintain going forward in 2026 and beyond? My second question is on your updated thoughts on investment margin. So at full year '25, you're quite bullish, particularly in P&C, around where that kind of investment result could expand. I'm guessing you still remain confident. Has anything really changed there on your view? And the last point on nat cat versus reserve releases. I mean, you typically have managed periods of low nat cat with low reserve releases. Can you talk about what your attitude towards that is in 2026. Given that you're saying you are really well reserved, do you think you have to keep doing this? Or do you think there's some possibility here of you being able to use some of your reserving to support earnings in '26 and beyond?

Thank you, Farooq. So on the volumes, so Nobis and Prima are primarily on retail. I would say I might not have the exact numbers, but we had EUR 1.2 million of net new contracts, and they probably represented 1/4 of this. So you would still have between 900,000 and 1 million new contracts without those 2 companies.

On investment margin, so yes, we are very confident. One word on Q1. We -- in March, given the crisis, you saw spreads increase in the -- in public corporate bonds. And so we took advantage of that to accelerate a bit our investments of '26. So we did a bit more than the quarter in the first quarter. And so that gives us confidence that over this year, we will invest at the right level of return. So no change compared to what we said last year.

And on nat cat, look, I think what we said was that we would manage nat cat together with PYD and the discount benefit. We'll continue to do that around the 4.5% nat cat budget that we have. So at the end of the day, what we want is for that -- for those 3 elements taken together to be neutral on our earnings.

Just going back to volumes. In commercial specifically, it sounds like you are from what you said, you're looking to grow more in property and in financial lines if that stabilizes further. Is that the right way to think about it? So casualty a bit more flat, but growing in other areas.

I think what we want to do is to grow -- I mean, again, that's for XL specifically, I suppose. We want to grow our business anywhere where it makes sense. And the vast majority of our lines of business at XL meets their cost of capital. So what we are saying is we want to grow. Then as I said, the pricing is slightly below loss trend. So we will offset that lower margin by the growth itself, but also by cost reduction and by investment income going forward. And that's how we plan to grow XL's earnings this year and in the coming years.

The next question is from Michael Huttner, Berenberg.

I had 2. The first one is on the U.K. pricing and the second one is on the benefit of lower reinsurance costs. On the U.K., I wonder if you could add a little bit more color to your comments. It sounds as if the U.K. has got a black spot against it at the moment. But the data we're seeing here from O&S and other bits and pieces is that U.K. Motor has turned. And I just wondered if, instead in the retail, I think you've got a minus 0.9%. If we put a plus 1% or something, what would it do to the your appetite for growth in the U.K. and maybe to pricing overall?

And then the second on reinsurance, you said thanks to low reinsurance, that's one of the drivers of your kind of confidence on growing profits in commercial lines. Can you give us a feel for the -- how big that benefit is, please?

So on U.K. pricing, and I think, obviously, we need to distinguish between commercial lines and motor retail in general. Commercial line is soft, but starting from a very profitable environment. So we can -- so we want to be disciplined. We don't want to write business at a rate that wouldn't meet our cost of capital. And we see that the U.K. market is in commercial lines softer than what we see in Continental Europe.

On retail, we are growing our retail business in the U.K., and it's not done with price, I mean by undercutting rates. It's because we have developed a number of partnerships, notably with a large bank in the U.K., which is very successful and brings significant net new contracts. So pricing, as you said, in retail motor is not bad as we speak, and we are growing our business.

On the benefit of reinsurance, so we don't disclose the amount, but it is somewhat material at group level because as you know, we didn't change our reinsurance programs in terms of attachment and detachment points last year, for '26 versus '25. And therefore, we are fully benefiting from the price decreases that we saw. And those price decreases were more than 20% in property cat.

The next question is from Andrew Baker, Goldman Sachs.

First one on AXA XL. I think you mentioned first quarter more of a bias to international business renewals. So should we expect a bit more pricing pressure to come through as we move through the year just from a sort of more U.S. heavy mix? And is there any other seasonality in pricing we should be aware of? So for example, any quarters where you have more property renewals than other? And then on your casualty comments, so the fact -- I think you said pricing below loss cost trends, but still willing to grow. I hear what you're saying in terms of sort of volume and investment income. But given the uncertainty around the loss cost trend in casualty specifically, I guess curious just what gives you that confidence to grow off these levels? And then finally, sorry, just on Personal Lines. Growth in Motor looked really strong, but it did look like there was a slowdown in non-motor. Just curious sort of what drove that and how we should think about the growth in non-motor going forward?

Thank you, Andrew. So yes, you picked that comment on the International business versus Global correctly. So yes, it might be that the pricing at XL, which was stable in Q1 and turned slightly negative territory for the whole year. That being said, what you could also see is to offset that geographic mix change, a change in some lines of business. As I said, financial lines are probably bottoming out, and you might see a better momentum in those lines coming in the year.

So what we need to keep in mind is that it should be for the whole year between -- broadly stable to slightly negative. That's how we think about it. And there is no further seasonality that I have in mind. Clearly, Europe is mostly Q1, but at XL Insurance, that's the only thing that we should have in mind. On casualty, you said that there is uncertainty on loss trend. I wouldn't say that. The loss trend for casualty has been pretty stable in the sense that over the last 4, 5 years or even 6 or 7, the social inflation generally has been quite stable in the sense that the second derivative is nil. So we reserve on that basis. We price on that basis. And we don't see any reason now, be it in our numbers or in the global environment that would lead us to think that the social inflation or the loss trend in casualty should increase.

And in Personal Lines non-motor, I would say there's no particular reason. So to be frank, I don't have a very specific explanation on this. I would just say that in France, we managed to have both volume and pricing. And in some countries, it's been a bit negative in volumes and a bit positive in some other countries. So there's no specific trend generally.

The next question is from William Hawkins, KBW.

I've got a request and then a couple of questions appended. As Paul ordano knows, KBW has been doing a lot of work on admin expense leverage across the European insurers. And I hadn't appreciated so I did the work that you haven't disclosed divisional admin expenses since the conversion to IFRS 17. So do you think you could provide more transparency when we get to the 1H '26 financial supplement, please? I'm hoping that's an easy ask.

And then related to that, in the context of what you said about EPS growth, when you're talking about expense management, do you ever envisage absolute admin expenses falling as a driver of earnings growth? Or is it always going to be a relative game of saving and reinvestment for volume growth? So it's the ratio that improves? And then secondly, please, when you're doing your own expense analysis across your business units, where do you think you're best-in-class? And where might you see meaningful improvement potential?

Sorry, on the last question, best-in-class in what dimension. I didn't pick that up.

Well, I guess, however you would define it, but where you think that you've got an expense efficiency advantage over the rest of the market in any particular countries or any particular lines of business?

Okay. Sorry, I'm writing that down. So we hear you on the admin expenses. I think what we will do is in September when we present our plans for the next 3 years, then we will give you more detail on the admin expenses by line of business. On expense management, I think what we want to do, and that's very important for this year and for the next plan is to carry on with strong organic growth. And strong organic growth means that you grow volumes.

And if you grow volumes, you have to obviously manage those additional volumes. So obviously, automation, digitalizations, AI will help. So my answer is given the strong ambition that we have in organic growth for top line, it's probably more of a relative game than a cost reduction in absolute terms. That being said, obviously, in places where we wouldn't have that strong organic growth because there is too much -- too large of a price pressure. I'm thinking of XL Re, for instance, there you want to see price decrease. Yes, expense decrease, sorry.

Then on the places where we believe we have strong expense advantage with a good number of countries where we are in quarter 1. That's how we measure the -- our price competitiveness. We compare it to others. And so that would be typically France, which is normal given the size that we have the scale in this market compared to others. But you would have other countries such as Switzerland, you would have Italy, you would have Japan, bearing in mind that we are Tier 2 in Japan, but we compare well. And Germany as well is a place where we've had significant efforts on costs, and we compare well to the others.

The next question is from Thomas Bateman, Mediobanca.

I was just wondering if you could give us a sense of where inflation might be emerging a little bit faster than other areas or where you think inflationary risk from the conflict in Iran could emerge elsewhere. Just interested in the comments you made on solvency and where that could be coming through. And the second question, I was just hoping you could give us an update on how the rollout of your mid-market U.S. commercial business is going.

Thank you, Thomas. So on inflation, just a word on the solvency because you referred to it. On this, it's purely mechanical in the sense that the way it's done, we take into account the inflation curve that you see on the public markets, and that's the input to our model. So irrespective of whether markets are right or wrong, if the inflation curve goes up, that has a negative impact on our solvency because you would project our expenses on the Life side at a higher inflation rate.

Then on the core of your question, which is where we would see inflation emerge faster, I think it has to do with oil and how oil prices spread. At the end of the day, what you see in some industries is that people have trouble producing and because energy is expensive and they'd rather reduce their production than produce and not being able to sell it. So at this point, I think inflation might stop if the crisis stops in the next few days or weeks, but it might also be that it spreads everywhere, not only to plastics or fertilizers because that's immediately dependent on price, but more generally on the fact that when you have to produce, I don't know, spare parts, the price of energy goes up and therefore, you would see price increases there.

So I'm not sure that I would see some specific sectors more affected than others. I think it's more general. I also want to take that opportunity to say that, again, we were not in an inflationary environment at the beginning of this crisis as opposed to '22. We've managed the previous crisis. The current environment is rather supportive in terms of price increases. And if anything, I'm not hoping for it, but that's something that could help a softening market being less soft or becoming a bit harder. And obviously, it has some positive impacts on the -- on interest rates and therefore, on our investment income.

Then on the mid-market in the U.S., last year, we grew that business more than 20%. And so we're happy with that. As you know, it's something that we are starting. So by definition, at the start, the growth is somewhat easy, but we are very happy with those developments. And that's a market which is less cyclical than the large commercial lines one. And therefore, we are confident that we can further grow there.

The next question is from Andrew Crean, Autonomous Research.

Three questions, if I can. Firstly, on health, the premium growth has accelerated on stronger pricing. Could you talk a little bit about what your margin anticipation is from that action. Secondly, there's the potential if this war goes on for a significant travel disruption with lots of flights being canceled and people's holiday plans disrupted. Would that have an impact on you within the Transversal business? And thirdly, given the different rating environment of different areas, are you significantly changing the capital allocation to different divisions? I'm thinking particularly you've made mention of reinsurance and of the U.K. market. Are you actually pulling capital back from these businesses to reallocate elsewhere?

Okay. Thank you, Andrew. So on health, 2 ways to answer your question. The first one is, so you saw the price increases were a bit north of 8%. Typical medical inflation is around 5% to 6%. That gives you an idea of margin increase. The other way to think about it is on the very specific case of Mexico, you know that Mexico in 2025 cost us 90 bps of loss ratio for the whole health business, and we are planning to recover on those 90 bps between this year and potentially next year. So that's how I would answer your question.

On travel, so yes, we do have a travel insurance business in our Transversal segment. I can't remember exactly the percentage is probably 1/3 or 1/4 of our assistance business. I'd say if at some point, there is a significant increase in the crisis and flights are canceled, yes, that would have an impact, but it would be small because we sell policies for a given flight to a given traveler. And therefore, we would change our underwriting immediately. So we might be caught up in -- at a given moment where flights that would be canceled, but that would not be worse than what we had in Q1 precisely when that kind of event occurred. So it wouldn't be material.

On capital allocation, the way we think about it is, obviously, we allocate capital where we have a business that meets our cost of capital. So what we tell our businesses is to get back to profitability at a level that meets our cost of capital and in most of the cases, if not all, that means reducing our local exposure. So that's the way we reduce our allocation to some business. So clearly, XL Re was an example because prices are down, even though you know that our combined ratio in XL Re was around 80% last year, but we want to keep that good level of profitability.

In the U.K., you see some business in Commercial Lines that we believe are written by our competitors at a combined ratio above 100%. We don't want to play that game. So we wouldn't write that business, and that's where you -- that's why you see that our volumes have come down a bit or are stable overall in Europe, but because of the U.K.

The next question is from Fahad Changazi, Kepler Cheuvreux.

I was wondering notwithstanding the updated actuarial financial assumptions you will do at H1, how do you see the new business CSM developing through the year? And if we do take into account FX and markets as where they are now, how do you see CSM ending up from the beginning of the year to the end of the year? And finally, just to get for completeness on Solvency II, could you just isolate and tell us what the impact was from inflation curve and from the increased volatility in Q1.

Okay. So on new business CSM. So as you saw, it was a bit more than 5% coming from Life and slightly negative coming from health. On the Health side, it's mostly due to a product in Japan health with unit-linked that we stopped or significantly diminished. And so you should see that same kind of impact over the rest of the year as we compare to '25. On the Life side, we believe that we have a very strong momentum in terms of sales, and we don't see reasons why it should come down in the next quarters. So PVEP volumes, new business CSM on Life should keep the same kind of growth more or less over the next quarters.

And on CSM itself, we said that we wanted to grow CSM as much as possible above 3%. So that's still the ambition that we have. On Solvency II, I would say inflation must have cost us something like 1 point and volatility on each of equity and interest rates, 1 point as well. So 2 points in total for volatility. And sorry, there's also corporate spreads. So 1 point from spreads, 2 points from volatility, 1 point from inflation.

The next question is from Iain Pearce, BNP Paribas.

It's just a follow-up on the Life business and particularly on the new business margin. If you could just give us a little bit more color on sort of what's driven the decline in the new business margin year-on-year? Is it just the mix effects in the JVs? Or is there anything else to pull out? Do you expect that trend to reverse over the course of the year? And also, if there's any impact we should think about on new business margin from the movements in rates we've seen in the back end of the quarter and since quarter end that could impact new business margins for the rest of the year?

So the decrease in new business margin is primarily due to the 2 joint ventures that we have in China and in Thailand, where business mix has not been as good in Q1 '26 as it was in Q1 '25. And that explains the reason. Now more broadly, when we think about new business contribution, and I put it that way for a reason. First, we focus even more on new business CSM than on new business value because new business CSM has a direct impact on our earnings, and that's why I insisted on the 5% growth that we have on Life new business CSM because we're happy with that number.

More broadly, we want to grow our Life business and our Life earnings. So at the end of the day, if it means that we should slightly reduce our margins because that would allow us to grow volumes more aggressively and therefore, grow profits at the end of the day, that's fine with us. In Life, in general, we meet our cost of capital, and we more than meet it. I mean it's a very, very profitable business. And therefore, we can allow ourselves to have slightly lower margins to get more business and to grow our new business CSM.

The next question is from Michael Huttner, Berenberg.

This is an extraordinary call, Alban. I mean, I know you're always quite open, but you seem even more open than normal. Leading question, the 21st of September, you're still holding some kind of event. Is this the spirit of today's answering questions where you're giving so much granularity. So that's -- I know it's not a real question, but there you go. And then the real question is kind of opposite. Everybody is worried about inflation. I'm more thinking there's a benefit in terms of frequency. Is that what you're seeing?

So on your first comment, Michael, I would say there's nothing to hide. So it's clear that our business is diverse, and it's normal for you to have questions which are very different. And on top of that, we have a volatile environment. So happy to be helpful and answer your questions. On your real question, which was on -- frequency. So at this stage, we don't see yet a benefit in frequency because you would probably need -- and I'm not sure that you would really want it, but a longer-lasting crisis for people to use their cards less. I mean, obviously, you see that on TV and in the news, but we don't see that yet in demand in our numbers, but that might come.

And may I ask slightly different. I'm really sorry. Well, I'm not, but credit, do you remember in that lovely dinner, you said, oh yes, credits actually could be an opportunity. And here, you sounded and you gave this extra disclosure, et cetera. And you said, I think you said you bought some more corporate bonds, et cetera. Did you also buy more credit?

So in Q1, we bought less credit than we had planned for precisely because the market was good on public credit. And I should say, we are very selective on our private credit investments. And at that point in time, I would say that we're selective to a point when the market, which is very dependent on M&A because the credit that you're buying are very, very often linked to M&A transactions, and you have fewer M&A transactions in Q1 also because of the crisis.

So all that put together, it means that we -- it's more difficult to source private credit at our level of requirement than it was to do that for public credit given the markets we had. But the window on public credit closed. And as you saw, corporate spreads tightened and went back to where they were at the beginning of the year.

The next question is from William Hawkins, KBW.

Very sorry to come back, but if I don't ask now, you'll never tell me. Can you tell me what the numerator and denominator was of the solvency ratio, please?

So yes, on the EOF, the numerator, it went down from EUR 56.4 billion to EUR 53.7 billion and the end of the grandfathering had an impact of minus EUR 2.4 billion. And the denominator went up slightly from EUR 25.2 billion to EUR 25.5 billion.

The next question is from Pierre Chedeville at CIC Market Solutions.

Two questions from my side. First, could you tell us the development of Nobis, your acquisition in Italy. Are you still observing very high growth there? And second question, you did not mention or maybe I missed it, the impact of dollar on Q1? And how do you see it evolve in next quarters?

So on Nobis, I would say there's not much to report, it's developing according to our plan, and we're happy. I think in Italy, the acquisition, which is more material and that's making a real difference is Prima. And Prima is developing extremely well because in the first quarter, premiums are -- so we don't book premiums.

Sorry, I wanted to talk about Prima, sorry.

No, no, that's okay. And so Prima grew by 30% in the first quarter. So we are very happy with the developments. On the USD, so there are 2 ways to do different things to think about. First, the dollar itself on average in Q1, it was 1.17. And therefore, it's very different from Q1 '25, but not very different from the full year 2025, where it ended at 1.17. So you see some ups and downs, but it's not material. And what we do is that we have very slightly opened, but very, very slightly opened our exposure to the U.S. dollar because in case of crisis, the U.S. dollar strengthens, and we want to take advantage of that. But we're talking a very, very limited amount.

And then when we talk about earnings, you know that we don't hedge our earnings and therefore, whatever change in the U.S. dollar we have, positive or negative, would impact positively or negatively XL's and Hong Kong's earnings once translated in euro.

[Operator Instructions] The next question is a follow-up from Michael Huttner, Berenberg.

Private equity, I think is that a topic still where you're kind of worried about -- not worried is the wrong word, but where the volumes are weak and so you have to kind of think, well, maybe it will take a longer time to get out to get the returns.

So to be simple, nothing has changed since last year. What -- you know that we plan to progressively reduce our exposure to private equity in our asset allocation, but very progressively over the next 3 to 4 years. And in terms of getting returns and getting cash out of private equity, what we do is obviously take the distribution, the normal distribution from the funds, but we've also done some secondary transactions last year and the year before. We had a very good practice that we created at AXA IM and that now with BNP Paribas Asset Management that helps us structure those secondary transactions. So one way or the other, we deal with that, and we are not concerned.

Gentlemen, there are no more questions registered at this time. I turn the conference back to you for any closing remarks.

Thank you very much for joining our call. If you have any further questions, please don't hesitate to reach out to AXA Investor Relations. Have a good day. Bye.

Thank you very much.

Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.

[Interpreted]

Dear shareholders, dear friends, thank you for your loyalty and your presence. First of all, I would like to say that we are sorry for the slight order that we are all suffering from and very quickly, hopefully, will vanish. Exceptionally, you are coming in large numbers. I'm very happy about this. It's really a great pleasure to be with you again for this new AXA combined general meeting.

Our meeting this year is of special importance in various ways. First of all, 2025 has seen record earnings for the group. And this, whilst our environment has been deteriorating and the overall risk level sharply has increased in the last few years, and we'll come back to that.

Our meeting is significant as well because your Board of Directors, which is attending today, is suggesting that we renew for 4 additional years, the term of Thomas Buberl. As you know, Thomas has been spearheading the group for 10 years. Spurred by him, AXA has seen a major transformation. Our group today is involved in a growth phase based on sustained performance. The proposal to renew Thomas' term is part of this context and does reflect the Board's decision to want him continue the action that he has been kicking in with quite some success.

Finally, you will recall that last year, we had celebrated the 40 years of AXA. We had then reminded you how Claude [indiscernible] had turned a simple mutual enormity initially, turned it into a global insurance leader since November 1, Claude left us. His death spurred great emotion within the group as well as among all those who have met him during his long career. The countless tributes given to him have highlighted both the great industrial manager. He was the first turn the company a place of social integration.

Today, Claude Bard's vision continues to inspire deeply our group. This is the reason why we wanted to share with you at the start of this general meeting, a short video outlining the great entrepreneurial adventure that Claude Bard embodied.

[Presentation]

Following this moving tribute to Claude, we will now dive into the heart of this general meeting. For this key moment of Access Life, I'm surrounded by Thomas Buberl, the CEO; and Guillaume in charge of finance, strategy, risk, underwriting and technology. We are also surrounded here with the members of the Board of Directors who are sitting in the front row. And I'd like to take this moment to thank them very warmly for their unfailing commitment and the active contribution to the work of our Board this year again.

The general meeting is a significant moment because it's an opportunity to be back together, enables the leaders to spell out their strategy and the Board report of its work and shareholders to ask the questions which are dear to their hearts. Again, I would like to underline the important decisions that you will be urged to take for the general meeting and for the governance of the group. First of all, as I was saying, we will be proposed this year to renew the term of Thomas Buberl as a Director for 4 years. The Board has already announced its intention to renew Thomas in his role as a CEO, subject to your approval with regard to his term as a director.

The proposal to renew Thomas's term also comes along with a change in the Board with a proposal to appoint Filomnaenama as a Director. Gillaume F will present in further details this proposal. Right now, I'd like to say that Filomnaenama, who is Swiss and Italian has a professional track record that is remarkable. In the insurance business, she will strengthen the experience and the expertise collectively of the Board. It is very important just when we are facing a rapid transformation of our environment and where we must face new challenges, especially regarding artificial intelligence, which will deeply transform our business and our way of working. We will now proceed with the formalities before opening the session and form a registration board. There are none.

So we are a public company because we have people who are not shareholders. And also, let me point out that this will be broadcast live and recorded on our website, axa.com. This Annual General Meeting is being held today on first call. It was convened in accordance with legal provisions by notice of meeting published on the 27th of February in the [indiscernible] by a notice of meeting published in the same Bulten as well as in the French legal gazette Lizafaren on the same day.

I've just been informed that the meeting is duly convened in both its ordinary and extraordinary form. Let me read the provisional quorum, which I will refine later on in the afternoon. [ 1,444,411 ] shares are represented today, and these shares represent 71.20% of the votes, which gives us a quorum of 72.58%. So this is an excellent quorum. So I can now hereby declare a combined general meeting open and shall proceed to appoint the committee.

I will act as Chairman in my capacity as the Chairman of the Board, I shall call as scrutiners the 2 shareholders present who hold in their own right or as proxies, the greatest number of votes. They are the AXA Assurance Michel represented by Mr. Philippe Biran, Director of this company, duly authorized and AXA Assurance V. Mutel represented by Mrs. Sophie [indiscernible] ,also Director of that company, duly authorized. I thank you, Philippe and Sophie, for having accepted these roles. And being with us throughout the session.

So let's point as Secretary of [indiscernible] sitting next to me, this being formed now we will be able to move forward. I inform the meeting of the President of Met court Commissioner appointed at the request of the company, who will be responsible for making sure the meeting abides by legal rules. The statutory auditors who have been convened in accordance by the law by registered letter are Mr. -- they represent KPMG SA.

Lastly, and this will end these legal formalities. I have available all the legal documents available to the meeting. I would like to add that those shareholders who so requested have received the documents and information required by law and have been able to inspect these at the company's headquarter or the company's website within the framework required by the regulations. As I said, we are convening today this combined annual meeting to ask you to vote on 21 ordinary resolutions.

Let's dispense with the reading of the agenda for this meeting. You may consult the simplified agenda, which appears on the screen behind me. I also propose that we dispense with the reading of the Board of Directors' reports, which have been made available to you under the conditions laid out by law. This will give us more time for the presentation and above all, to answer your questions. I'd like also to point out that as at previous meetings, we will be using electronic voting, the details of which will be explained to you before the vote on the resolutions.

So now let's move to the next phase, which will be unfolding with several sequences. First of all, the presentation of our strategic outlook by Thomas Buberl, followed by the presentation of our KPIs by -- with Guillaume [indiscernible] After that, we'll have a roundtable with several experts in the group on the topic, how to ensure the future. The third sequence will be dedicated to the governance and the questions of remuneration of our senior executives with Guillaume Borie presenting the Chair of the Appointments Remuneration Committee and then we'll be coming the moment for your questions and exchanges with the floor before we move to the voting of the resolutions.

To start, let me turn it over to Thomas for the presentation of our strategic outlook.

[Interpreted]

Hello, everyone. I'm delighted to be back with you for this new general meeting. Before I share with you the group's strategic prospects, I would like to pay a tribute to Claude [indiscernible] AXA's founder. His death in November last was a moment of deep sadness for our group, driven by a very strong vision as an insurer serving societal progress. His track record tells us a great entrepreneurial adventure, which is AXA. We were deeply moved by all the tribute coming from all the employees around the globe, but also from the political and economic arenas.

For AXA, he has paved the way for this unique way, which continues to be a deep inspiration even today our decisions. He's being -- he was so demanding. He had a sense of the collective and his vision about progress remains our compass to make sure that AXA is successful in an uncertain world, true to his -- our mission as a protector and contributing to human progress. By paying a tribute to Claude [indiscernible] we are reminding ourselves where we come from to give some meaning to our action and to our current mission.

So now I would like to come back to the performance of the group in 2025. This performance has given us the means to stick to our commitments, invest and pave the way for the future. For the second year of the implementation of our strategic plan called Unlock the Future, we have recorded record earnings. Such performance illustrates the relevance of our strategy chiefly based on organic growth. Such growth -- we owe it to the diversity of our distribution channels, the professionalism of our distributors and the quality of our offers and services, which allow us to fulfill the needs of our clients and even conquer new ones. In a world that is more volatile where climate-related risks and geopolitical risks and technological risk and social risk are increasing.

The role of insurance is more than ever essential to stabilize the major imbalances of our societies. I will now spell out our major financial indicators. As I said, we -- in 2025, our performances were at a record level in every line of business. Our premiums reached EUR 116 billion, up by 6% versus 2024. Such organic growth accounts partly for a price effect, but it's also accounted for by a sharp -- strong commercial momentum, which enables us to increase the number of clients and contracts in a large number of our markets.

In 2025, in the single segment of the retail business, we won EUR 1.6 billion new contracts throughout the world. Such growth was also profitable. Our underlying earnings are also increasing by 6% and even by 9%, excluding AXA Investment Managers. Such performance reflects our technical excellence, the diversification of our risk portfolios as well as a very strict tariff discipline.

Our underlying earnings per share is climbing by 8% in the upper range in terms of target. Finally, our balance sheet is very solid with a Solvency II rate at 224%, which is up by 9 points versus the end of 2025. Given these very good results, the Board of Directors proposes to the shareholders a dividend of EUR 2.32 per share, which is up by 8% relative to last year. And it has approved a new buyback program for an amount maximum of EUR 1.25 billion, which started on March 2.

The excellent performance is -- I mean, AXA is well positioned to reach the upper range of the goals of our plan unlock the future. Such success is mainly due to our model, which is both very well balanced and highly diversified. This is the outcome of the transformation, which was kicked in by AXA for over 10 years now. Our group from now on is refocused on the heart of our business, which is the insurance business and has available very strong positions on our strategic market.

This model enables us to be relevant while being competitive with higher demand for protection from the market. The emergence of new risks generates new needs for protection. And I have in mind the emergence of new technology, autonomous vehicles, cybersecurity as well as energy transition. The aging of global population has been boosting demand for savings, pension and health products and solutions.

Finally, the needs in insurance of low-income individuals are also important demands, and we meet these demands by way of our inclusive insurance portfolio. AXA today is very well positioned to meet all of these needs for protection. Let us have a few examples, which demonstrate that we are covering all of the needs of our policyholders, and I'm proud to share them with you. We are the leading insurers in commercial lines, covering large corporations as well as midsized companies, which play a key role in our economic fabric. We have been offering more and more appropriate products to micro entrepreneurs via our inclusive insurance solutions. And we also are very well positioned on the segments of protection and employee benefits, which has been developing strongly.

One of our values has been boldness. The history and great success of AXA for the last 40 years have always been supported by a very strong entrepreneurial culture and by a capacity to onboard new technology into our business operations. I would like to share 2 examples. The first is the acquisition of Prima, an Italian-based insurtech. This was a bit less than a year ago. The direct insurance solutions offered by Prima as an addition to our network of brokers, tied agents and banking partners as is the case already with the direct insurance business in France. It makes it possible for us to reach out to new clients, including the younger generations.

And finally, it strengthens our distribution capability in Europe, thanks to a next-generation technology platform that will be gradually rolling out across several units and entities of the group. We believe in the complementary fit of our distribution channels. In parallel to this acquisition, we continue to invest broadly into our networks in the field. For example, 430 new tied agents were installed in France in 2025. The second example I want to share with you is our artificial intelligence strategy. We're convinced that AI will transform the insurance industry while opening up lots of new opportunities. AI will help us better price risks, help us improve quality of service and customer experience. It also helps us to accelerate our technology development. In France, already more than 12,000 tied agents have been using Smart in AXA solutions, which is an information search tool, which was developed by AXA and which is based on generative AI. In order to drive and onboard our employees, and to me, it is the most interesting benefit of AI, we have been massively investing into their training and development.

By in our strategy and the trust they grant to adopting new tool will be critical in our future success. And this has been working extremely well. An internal survey has showed that 70% of our employees are optimistic as to the gains and efficiencies and upside provided by AI. We are now entering a more operational phase of artificial intelligence. It will help us accelerate its use where this technology can generate added value. And I believe that this is the case in underwriting and in claims management. We will tell you more about it when we disclose our strategic plan in September 2026.

Today, an insurance company uses on average 40 variables to underwrite a motor insurance policy. In the future, thanks to AI, we'll be able to review 400 such variables, which will refine significantly our selection and our pricing. These robust solutions and this ability to innovate are only relevant if they benefit the greater number. Ever since it was founded, AXA has always strived to share the value generated by its operations. We have paid out close to EUR 50 billion in compensation to our customers last year. Every year, we've been investing more than EUR 40 billion in the economy.

Last year, we have paid EUR 13 billion in corporate tax local and regional taxes as well as payroll taxes and charges, including 37% in France. For our employees, we have paid out EUR 7 billion in salaries and bonuses. This is a key to the success of our group. And of course, our shareholders are a key driver in AXA Group's financial stability ranking first among them is the AXA Mutual Companies. And more than 36% of our employees are shareholders of the AXA Group.

Finally, we also contribute to climate transition. In 2025, we invested EUR 6.4 billion to accelerate climate transition. In 2025, we also launched an ambitious sponsoring initiative with the AXA Fund for human progress. This fund has been spending EUR 60 million a year in impactful projects around 4 key pillars for us: heritage, nature, science and inclusion. The fund has been grouping together and unifying and working with NGOs, institutional partners, academic and cultural partners around a same shared vision, which is to contribute to a more resilient and more inclusive future. Because at the end of the day, our business draws on and relies on social bonding. Without any collective trust and without social cohesion, no insurance system can last long.

As you know, our strategic plan will come to an end at the end of this year in 2026. Our next strategic cycle will cover 2027, 2029, and we already are preparing for it. The future success of AXA builds upon 4 areas. First, making artificial intelligence, a key driver for efficiency and effectiveness and for improving customer experience. Number two, we need to strengthen our excellence and our agility in a fast-changing environment. Number three, we need to direct more capital towards growth opportunities, which are the most generative of value.

Number four, we want to strengthen our robustness and our resilience while maintaining balanced diversification and a very solid balance sheet. Before I turn over to Guillaume Borie, who will review the performance results of the group in more detail, I suggest we watch a short video, which reviews some of our initiatives relative to Artificial Intelligence. Dear shareholders, I thank you for your attention.

[Presentation]

Thomas, for your presentation. I would like to turn over now to Guillaume B, who will be reviewing performance results for fiscal 2025.

[Interpreted]

Hello, everyone. Dear shareholders, I'm delighted to be with you this afternoon for the first time in my new role and to review in some detail the financial and nonfinancial performance for fiscal year 2025, which Thomas Buberl has mentioned as being very robust for the second year into our strategic plan unlock the future, we achieved a record performance with respect to our revenue, reaching EUR 116 billion, up 6% over 2024. This is an increase of some EUR 13 billion for our revenue over just 2 years, i.e., right from the beginning of our strategic plan. You have here the tangible translation of our organic growth target set by Thomas Buberl, which is a target we have been attaining, thanks to the hard work and commitment of our teams, our distribution channels and the trust of our customer. In 2025, you can see that all of our business lines contributed to this good positive sales momentum.

In P&C, revenues reached EUR 58 billion, up 5%, driven by both rising volumes and positive price effect. The life insurance business has performed extremely well with revenues reaching EUR 35.5 billion, up 9%, confirming that AXA is back in the strategic health in the strategic business for the group. And finally, the health insurance business reached EUR 19 billion, up 5%, being driven by good sales development across all of our geographies.

Fundamentally, this sustained growth has been posted in great conditions of profitability as shows the operating income of EUR 8.4 billion, up 6%, not including AXA IM, i.e., only on the insurance business of the group, the underlying earnings grew by 9% in fiscal 2025, up 9% is the underlying -- the intrinsic underlying performance of the group, which is especially brisk and robust, and I will review this more in detail with P&C and health insurance.

In P&C, I told you EUR 58 billion in revenue, some EUR 6 billion in underlying earnings after tax and 3 customer segments, which are of similar sizes. So retail lines, mid-market insurance and business to manage large risk for corporations under AXA XL. So the P&C business is close to a perfect copy in 2025. All of our indicators have improved, lower loss ratio, lower overhead expenses, thanks to increased operating efficiency and fewer releases of provisions.

These great results are the result of a strong discipline in execution by the team with constant focus and attention on technical excellence, which is a critical factor to help serve and support our customers day out. And technical excellence has been extremely strong for the last 2 years on the back of increased technology solutions on the back of AI. This excellent performance is the result also of a growth strategy that we've been adapting to the reality of each of the customer segments we are targeting.

So for retail lines and for mid-market insurance, our margins are reaching unprecedented levels among the best in the industry, enabling us to be in a winning mode, and we are aiming at gaining market share across all of our geographies, thanks to competitive offerings, which meet the needs of our customers and clients. With respect to protecting insurance coverage to large corporations and mid-market companies, especially with AXA XL, we've been protecting very high-level margins in a fiercely competitive market while engaging in a selective growth strategy, especially thanks to the sources of growth we are tapping into to cover the new risk Thomas Buberl mentioned, i.e., energy transitioning, cybersecurity risks and large technology project coverage. Now back to our life and health insurance. You can see that the underlying earnings was up 7% to EUR 3.5 billion.

And here again, you have a balanced contribution by our 3 business lines: protection, health and savings and retirement. In health insurance, we are focusing our efforts on our ability to innovate in order to better serve and support clients in their health journeys. This had us set up health centers and beefing up our services to support patients. In protection insurance, we have a great commercial momentum, especially in Japan and in Switzerland, thanks to solutions, which combine protection and savings and retirement products. And in savings and pension, net inflows in 2025 were up sharply, up EUR 5.4 billion in net inflows with attractive margin levels with higher volumes with reevaluated assets we manage on the part of our clients, especially thanks to good market performance.

On the savings business, we signed a partnership -- strategic partnership with BNP Paribas Asset Management, which gives us scale and more competitiveness in our offerings and will help us gain new business while improving the return on investments for our existing clients. By way of conclusion, I would like to mention an important fact, which translates how the group has repositioned under the involves of our CEO for the last 10 years. Excellent performance posted in 2025 has been the result of positive contributions by all of our geographies and of all of our business lines without any exception.

In other words, all of our business lines are going full out ever from our AXA XL covering large corporations, including our Asian, African, Japanese, South American and obviously, European operations. We now have an insurance platform, which is robust, which is resolutely oriented towards profitable growth. And by way of conclusion, knowing that today we are in Paris, I would like to underline the great performance in our domestic market, i.e., France, with growth in revenues of 6% and growth of the underlying earnings of 7%.

So this brings me to give you an update on the strategic plan called Unlock the Future. 2026, i.e., this year will be the last year of this plan. And the 3-year targets and goals you have here up on the screen. As you may see in the second column, you can see the excellent underlying and operating performance in 2025. And this brings us to the upper end of the bracket of our targets across each of our 3 KPIs. We are fully in line with our guidance and with our road map. Also, we have had excellent financial robustness. As Thomas Buberl said, our solvency ratio stands at a very high level, much above 200%.

Remember that in the certain time we are operating under and our clients are challenging us day in, day out on this, this financial robustness is a key asset to support and serve our clients and to protect our shareholders. On the strength and on the back of this robustness and good performance, we believe we are very well positioned to reach the upper end of our bracket in our underlying earnings per share with a growth target of 6% to 8%. And we believe that in 2026, across all of the plan, 2024, '26, we'll be reaching the upper end of this target bracket.

Now this positions us very favorably into the next planning cycle by reaffirming our goal to pursue sustainable growth, which will help us thrive in the future, thanks to 2 key levers at the heart of our next plan, organic development and growth in our business in a context where the needs of our customers and clients with respect to protection will be growing. And number two, we'll be accelerating our technology transformation, thanks to AI. A few more things on our shareholder return policy, excellent performance by our group leads us to pursue our attractive payout policy. This is a sign of trust, and we thank you for your trust. As you know, we commit to paying out 75% of underlying earnings per share, including 60% in dividend with a dividend payout at least equal to that of last year and 15% in the form of share buyback.

Our key financial discipline and the operating performance of our business operations have led the directors in line with this policy and as Thomas Buberl, mentioned earlier, to offer a dividend of EUR 2.32, up 10%, and you'll have to vote on this in a few minutes. Now a few more words on the Access stock in a troubled time due to specific tension in France. We've perceived increased risk by international investors for France, higher risks and by pressure in the market, since the Middle East conflict broke out. The AXA stock has held well and the growth of our stock has been 131%, including reinvested dividend. And we are outperforming CAC 40, Eurosol 50 and the stocks insurance, which is the insurance benchmark. The very fine development is a result of our financial performance, which I've just mentioned as well as our long-term orientation, including our nonfinancial performance.

By way of conclusion, I will review this nonfinancial performance. You may know that in 2021, we launched the so-called AXA for Progress Index around the strong belief of ours, which was the need to seamlessly report on our performance with respect to ESG commitments. This commitment is part and parcel of the DNA of AXA Group ever since it was founded. We are showing you the 7 indicators we are tracking in the context of this ESG index around our 3 levers: our insurance business, our investor business and our employer activity.

Our core business being insurance operations. As Thomas Mul said, the offerings we have for our clients in order to help them mitigate climate change accounted for some EUR 5 billion in premiums, the target being EUR cumulative billion over '24, '26. These offerings are very tangible, enabling our clients to cover new types of businesses related to biodiversity protection, biodiversity and circular economy. Our second category is that of investor. I won't go back in detail on this because our CEO mentioned it.

Finally, we are taking action as a responsible employer and as a responsible company, a civic-minded company in 2025, we launched a training and development program to adapt to climate change for all of our employees. And in 1 year's time, some 50,000 employees of ours have already undergone training, the target being 80,000 employees by the end of 2026. Again, remember that AXA made very strong commitments with respect to how it should contribute to decarbonizing its insurance and its investor operations as an insurer ourselves, knowing that our emissions are very low given our business operations. These commitments are described in our various reports, and we're in line with reaching them a few years before our targets.

This finalizes my review of the financial and nonfinancial performance. Thank you for your attention. Thank you.

[Interpreted]

Thank you, Guillaume, for the clear presentation. I suggest now that we view a short video carried out by the forward-looking teams of AXA. We will be followed with an exchange with the experts of the company with [indiscernible] the general moderating on the topic how to ensure the future.

[Presentation]

[Interpreted]

Hello, everyone. We've just viewed a vision that led us to 2 different futures, which have one common point. They are not that far away in reality, these scenarios, it's not sci-fi. They already exist in a fragmented way. What the film is telling us is that we have entered into a new era where they are in the risk of interconnectedness, economic, technological, climate risk, geographic, social risk, which are not added up but interact together, get stronger and make the future more uncertain than ever.

In this context, one central question arises, how can we continue to ensure the future when the future itself is becoming uncertain. And that's the role of AXA today to anticipate, prevent, support the transitions and contribute to stabilize the imbalances of the society. I'm a journalist moderator, I'm delighted to moderate this roundtable with 4 guest speakers, which provide an additional look. Francois G in charge of Risk; Matienaa, Technology and AI Director; Carmila, Secretary in charge of Human Resource and Compliance; and also Mathieu Godard, Director of General ASA France.

So how -- what about this risk and their transformation, Francois, first of all, in the face of the intensification of climate upheavals, economic shocks and the emergence of this new risk, what today makes the traditional insurance models inadequate?

[Interpreted]

Hello, Elena. Hello, everyone. We've seen this in the film. Risks are increasingly interconnected and the intensity of risk is also on the rise. And the frequency is gaining momentum all in our environment, we know people who have been faced with a natural event. When such a natural event has an impact on a farming area, industrial area, we can understand the consequences it can have, especially on the production line, potential prices also generate potentially economic, social impacts. And we've seen also the cost of [indiscernible] cats is increasing year after year and the frequency is also accelerating. Eliiona, when you were talking about these traditional insurance models, you're referring to these models, which essentially are based on 2 assumptions. First of all, the future will be about similar to the past and the mutualization of losses will be enough or adequate. In other words, regrouping losses means that losses suffered by a few policyholders will be borne by all the policyholders.

With what we discussed and seen in the film, all the losses are becoming greater, and we understand that mutualizing these losses on their own is not sufficient enough and which amounts -- which accounts for the limits of traditional models. So concretely, how is AXA taking forward its management of risk to detect earlier the new risk and continue to ensure what is important for its clients?

[Interpreted]

Absolutely. This is the starting point. We always start from the need of our clients. The aim is to support clients to reduce the impact of risk. So as an insurer to reduce such impact of risk, we don't have a magical want. We are part -- we look at the world as it is, and we are part of it, but we have given and we underwrite insurance contracts in over 50 countries. And based on these data, our experts have rolled out the technology among which artificial intelligence. In what way is it helpful and in what way is it helpful for our clients with such technologies and the data. This allows us to refine each time further the understanding of risk. And when you better understand risk, it is the key to adapt to the mutualization of losses, the risk prevention. It's when you understand risk that you can identify what are these risk drivers that will generate the highest level of losses and damage and provide the information through customer prevention by explaining by acting on this area of risk, we can reduce collectively the impact.

So working towards prevention together beyond loss prevention, thanks to data and new technologies that can help us move forward into the future.

[Interpreted]

Thank you very much, Francois. And now we can move on to you, Mathieu, because in order to continue to ensure you need to understand and anticipate and for this technology, of course, plays a key role. So Mathieu, you are on the front line in terms of AI and technological challenges in the scenario of the film technology, in particular, plays a major role. But in what are these tools changing concretely the way AXA grass the risks and their interconnectedness.

[Interpreted]

Hello, everyone.

Thank you, Elena.

Yes, I think it's very clear today. The major risk today that we are facing, whether climate-related risk, cyber risk or about geopolitical instability are not isolated events. They are gaining ground. They are feeding each other. They are spreading around and the traditional models do not allow to report adequately. So we need to invent a new approach. And this is where AI kicks in because it allows us to have access to a whole new dimension of data, both in terms of volume and typology and AI will allow us to make understandable and usable gigantic masses of unstructured data, such photos or satellite [indiscernible] or recordings or text. All of this makes up a huge mass of information, and it's now possible to draw upon it for this, we have available huge catalyst power, which allow us to include into our models all this information, the essence of the conclusions we can derive from these multiple observations.

And today, this is what we've been doing with our tools. It allows us to obtain an equal performance such as look at correlations between different risk scenarios. In the past, it would take us several weeks. And today, we're able to operate nearly in real time. And it's very important because it means that we are developing a much more accurate risk understanding. We can, therefore, have more relevant prices that are even fairer and open the door to prevention in a very creative as alluded to by Francois.

Yes, could you tell us other concrete examples so that we can understand AI intervenes in the understanding of risk and even customer experience. Let me -- there's a tool that we saw early on in the film, which is discipline White Fire, which is -- tries to model forest-related fires. The film was alluding to Los Angeles fires. Europe, unfortunately, was also struck in 2025, that's 1 billion hectares of forest that vanished. It's a doubling compared to the trend that we had been seeing up until then. And traditionally, the way that risk was modeled was simply static. And today, thanks to AI, we are able to track about 20 parameters even in real time so that we can really foresee changes. We rely on the vegetation, the directional strength of the wind to be able to give to our clients on their relevant sites up to 72 hours in advance advice.

So our clients, therefore, can take preventative actions in order to reduce the impact of such events. Let me also talk about client experience because in that case, we see major benefits, thanks to AI. Smart AXA fulfills such demand up until recently for our sales forces, responding to a request from customers meant finding a piece of information related to the client then navigate in very complex in one click now, you can mobilize one virtual assistant based on an AI engine and which in a few seconds, collect information that is necessary to ring-fence the need of a client and then check what is present in the documentary basis to propose an answer, for example, to request for a cover and then link this a piece of advice, the explanation that could be required by a client.

This means that for our sales forces, it's a huge time gain, and therefore, they can spend more time in listening to the needs of the clients. And for the clients, it means, of course, to have a faster reply in return. So we have -- we are well beyond experimenting today. It's working at scale for P&C clients. 12,000 clients use it, 1,500 requests come every day are processed that way. And therefore, it's -- these tools already have a very positive effect among our clients, and there are still many more things that we can do. with that.

[Interpreted]

Thank you, Mathieu, for having shed light on the role of technology, especially AI tools. But technology on its own is not enough to transform a group such as AXA. You also know to bring on board the men and women that make it Karim today, that's 150,000 employees and more in the world. How can you mobilize an organization of such group around these societal challenge, client inclusion, protecting the most vulnerable ones.

[Interpreted]

Thank you, Elen. Good afternoon, everyone. So we have 150,000 employees and agents, and that commitment has 2 routes. First one is the essence of our business, which is about protection. The second one -- it is a unique DNA that has been outlined since the beginning of the session, especially with this great film that outlines the heritage of Claude BA in that film, there was a sentence of this quotation that we keep repeating in our company, which is there's no prosperous company without solidarity.

So that heritage which we strive to make concrete in our daily actions and also transmit to the generation of employees who are joining us. That commitment is concrete is, first of all, in our business line, having charged the claims colleagues, people who are agents on the ground because they are the ones who are close to the companies and families especially in moments that matter. This commitment is also coming through solidarity actions. And this year, we're celebrating the 35 years of AXAtuca. We had 56% last year who were involved in volunteering around the world in France, volunteering work. We work with 320 societies association. We have about 1,000 actions on our territory.

Our conviction is that we need to understand. So we invest a lot in the training of our people, especially regarding the climate Guillaume mentioned it as from 2021, we were the first company with AXA Climate to certify all our employees regarding climate.

And lastly, the commitment is who we are as employer. We are driven by social and societal innovation values. And wherever we are as an employee, we have a responsibility on jobs, on diversity, on equal opportunities. And this is also the footprint we are leading through our role as an employer. And Karima, to come back to the internal commitment, how does it reflect in the offers for our clients such as AXA Essential, which aims to have a more inclusive and accessible insurance program.

As Thomas said, our offer is called AXA Essential that we have been developing for several years. And this offer is aimed for low-income families. When we say this, who is involved when we look in emerging markets in Africa and Asia and South America, we have 675 million people who may not have access to insurance in Europe, we have 1 person out of 4 who has low income like retired people or families with one single parent or small companies. And there, we need to offer protection.

Our vision is no one should be stopped from obtaining insurance for questions related to financial resources. This is why we develop AXA Essential. We have reworked our products, have looked very closely our distribution networks. If I may share a few examples in Spain, we have a partnership with the Corus postal company, we distribute in Spain through the post health-related products across Spain, in France, mature with your team, you develop an offer, which is called ante for my community. So we also work with boroughs, municipalities about 2,000 -- of less than 1,000 to distribute health products, especially among the elderly people. And in Nigeria, in Africa, where I was several weeks ago, we developed health products distributed through pharmacies. It gives -- shows you all the diversity of these offers, which involve today over 20 million people around the world. And I'd like to take advantages to thank all the teams who are driving such innovation concretely in the entities and all my colleagues at the management committee who are in this room who also are keen to develop this offer for the coming years.

[Interpreted]

Thank you very much, Carima. Yes, we've seen the importance of understanding the risk and mobilizing the teams, but there's another key lever which to act as close as possible to the ground. And Matthew, I'm now turning towards you, Karima mentioned this several years ago. In what way this -- through your networks and your agents and new partners actions? Is it a strength when you are very close to the ground, to the territories?

[Interpreted]

Hello, everyone.

Yes, we mentioned it since the very beginning of this session. Risks are more complex, are shifting, are increasing. And Francois was explaining very well when she said that mutualization may sometimes hit its limits. So therefore, we need to take it a step further, which means what push further prevention and protection. And what we -- as a quality, we can combine the power of calculus mentioned by Mathieu, our expertise with a local routing and territory presence, which is unique with over 3,000 tied agents present in all our territories, which are rooted locally and who know intimately their clients.

And so they are in a position to provide the right protection-related advice because everyone can understand that the risk in one region is different, the same risk to what you faced in the south of France in terms of climate. So it's a major quality that we are implementing each day so that we can provide a presence, a piece of advice that is as customized as possible. Precisely, any examples that you could share with us?

[Interpreted]

Well, this new prevention protection frontier must be unfolded very practically. Let me take 2 topics. First of all, the climate topic. It is dealt with retail clients with a mechanism called Clima, which is mainly 7 million text sent last year to our clients to prevent them about the occurrence of a nat cat and to indicate a number of pragmatic prevention preventative advice. We will supplement it this year in terms of health stones by inviting car drivers to put their cars in a protective shed and by refunding the cost and also making available through over 200 tied agents an anti-flood kit. In the case of companies beyond the 2,000 visits that our protection engineers make each year, we've just launched a new initiative, which is called [indiscernible] whose goal is to exchange with company owners to identify together the weaknesses his or her companies may be subject to and more importantly, provide an action plan because the resilience of a company is not reacting afterwards, but prepare yourselves to the occurrence.

We contribute also in boroughs and communities with [ Marcominoion ], which is a mechanism where over 300 mayors were supported by our prevention tax teams to put together a safety plan that a mayor has to put together. This is a way for us to further protect 1 million French people. And then -- we go beyond this through philanthropic actions. We have a partnership with Lavigard de France. You all know that maintenance of rivers and so on is very important, and we contribute there. Now regarding social protection. In this regard, we are putting forward new initiatives. We have an app called Mo Sante Angel, which allows our policyholders to obtain preventative pieces of our device with a topic which is emerging strongly, which is mental health that Matthieu also was talking about data first. It's important to be able today to share with the company owner data around absenteeism, which is a growing issue and be able to work towards the well-being of company employees.

Next with the HR managers. This is an initiative which is gaining ground tremendously currently. And as I said before, prevention in terms of prevention, well, there are initiatives which are numerous, but our major challenge is to ensure that French people and our policyholders move to action and act. And we have a special role in this case, to the expertise that we can make available for society at large through the future risks report, in particular, but also through specific studies such as a data scope that enables us to share about the trends of absentees, but also about the awakening of consciousness. This is the role that [indiscernible] plays with Compass on road risk, and we go around tiny houses to make sure we create awareness among young people who support school children, 5 million soon in primary schools together with police to awaken them to the risk of the Internet.

So we act as experts. We awaken consciousness, but also in social public and with public authorities, we shed light also for the good health of the nat cat regime, which is very precious for our company. So very concrete. This is how at AXA France. We put life into this very important issue, which is prevention.

[Interpreted]

Thank you, Mathieu. Yes, we can see through all your answers that the role of an insurer is changing dramatically. It's not only about preparing but anticipating and even transforming oneself to wrap up in one sentence according to you, what is the role of AXA to ensure this -- to impact the risk for our clients by adding prevention to the mutualization of losses. Mathieu? -- to ensure -- to integrate technological innovation responsibly to protect what matters the most when it matters the most, Karima, innovate, innovate, innovate and build partnerships that have more impact. And you, Matthew, I urge you to move to action and each of you in this room, if you could put in place as from next week, a first preventative action, it would be great. Thanks to all 4 of you. What we take away is that these futures that we saw are not written in advance, but force you to adjust your models, invest in technology and AI responsibly, make sure that you commit -- you have the commitment of the employees and reinforce also things on the ground.

And maybe this is what it is to ensure the future, give companies, societies, clients the way to remain resilient in a changing world. Thanks to all 4 of you. I thank you all for this a very exciting discussion that puts in light the prospects for the 2030 scenarios individual. I will now ask Guillaume Bury, who is the Chairman of the Remuneration and Governance and Sustainability Committee to present the changes when it comes to the governance of our company and the remuneration policy of its senior executives. Guillaume, over to you.

[Interpreted]

Hello, everyone.

Ladies and gentlemen, dear shareholders, in my capacity as Chair of the Compensation, Governance and Sustainability Committee, it is my pleasure to review the key facts and aspects of the Board report on corporate governance. I suggest we start by looking at the current membership of the Board of Directors of AXA Group, and you have it up on the screen. As the previous years, the Board reached all its targets and goals with respect to diversity, with respect to gender balance, the proportion of independent directors, seniority, age, complementary fit in skills and expertise and experience as represented on that Board. Since the prior shareholders' meeting, one change deserves being noted following Isabelle Hudson leaving the Board, the Board decided that Ewout Timbergen should be appointed Chair of the Audit Committee to replace Isabelle Hudson.

The Board considered that the experience, expertise as a Finance Director, his ESG skill, his strategic vision in digital transformation and the way AI is being used and his knowledge of the insurance industry will be key skills and expertise for chairing the Audit Committee now. Connected with Isabelle Hudson leaving, the directors has wanted to beef up the insurance expertise inside the Board. In this prospect, it is suggested that Filomena Colachrella be appointed to sit on this Board. She devoted most of her career in the insurance and health industry. And I will mention Filomena again in a few minutes. Now let us look at the suggested changes in the membership of the Board. As you can see here, the terms of office of 6 directors are up for renewal. You will note that they are suggested to be renewed for different terms. The goal being that with have a better scheduling of the reappointments of terms.

So the reappointments of 4 such directors will be suggested. Let us start with Thomas Buberl as announced last year and as our Chair, mentioned. The Board suggests that the term of office be renewed for a 4-year period. The intent being that he is reappointed as CEO after this meeting. It is also suggested that Ewout Schimbergenst be renewed for a 4-year period. I won't review again the qualities and virtues of Eout. I've just mentioned them. The Board also suggests that Rachel Picard be reappointed as a Director for a 4-year term. The idea being to schedule out the reappointment of terms. Her leadership profile, her in-depth knowledge of customers and consumers and her key experience in developing and rolling out digital transformation projects are key assets to our Board.

Finally, we suggest that you reappoint Gerald Hallin for a 2-year term in line with the bylaws of the company, Gerald Halin having reached 70 years of age, even though he doesn't look it. For close to 30 years, Gerald Alain played a key role in the group's performance and its key transformation steps. The Board unanimously considers that his great knowledge and experience, his knowledge of finance and insurance have been unique contributions to the quality of discussions and to the development work of the Board and its committees.

As I told you a few minutes ago, the Board suggests that Philomena Colatrella be appointed as Director in order to assess the profile and skills and expertise, we suggest we watch short video where she introduces itself.

[Presentation]

You understand that Philomena Colatrella was selected by the directors based on her in-depth knowledge of insurance and health care industries, also because she has great experience in digital transformation innovation aspect. It is suggested that she appointed for a 3-year term. And here again, in order to maintain the scheduling of the terms of office and also note that the Board of Directors assessed the independence of Philomena Colatrella, in line with the AFEP-MEDEF code of conduct and concluded that she could be considered as an independent director.

I will add that the terms of our 2 female directors representing salaried employees of AXA Group, Bettina Cramm and Martin Lievre up for renewal at the end of this shareholders' meeting and that the European Works Council and the European and the France level European group sorry -- Works Council decided to repoint them for a 4-year period. Provided that you vote in favor of these proposals, the Board membership at the end of this meeting, will have 14 directors, including 8 women and 6 men, 9 of whom being independent directors.

The Board committees will be made up as is being displayed behind me on the screen. Ewald will keep sharing the alert committee. Conversely, you will leave the Finance and Risk Committee to fully devote his role as Chair of the Audit Committee, Russia, Gerald and Bettina will be reappointed on the committees, they are sitting on now and Philomena will be appointed a member of the Audit Committee as well as a member of the Finance and Risk Committee. This membership seems satisfactory to us as directors so that we can have a properly operating board. I want to underline that in order to maintain a well-balanced governance mechanism above and beyond regulatory requirements, the independent directors occupy a key central role in all committees. You may note that each committee is being chaired by Independent Director.

The Audit Committee is fully made up of independent directors and the other committees are made up of independent directors as the majority of their members. And the Chair of the Board and the CEO are not members of any of those committees.

Now let us move on to the activities of the Board in 2025. As you can see here, if you have good vision. It was dense activity this year with 9 board meetings, including a 3-day strategic seminar, 22 Chair Committee meeting for so-called executive sessions and many, many training sessions. Artificial intelligence was obviously a key subject in 2025 on the agenda of the Board, and will remain so in 2026. Other topics included geopolitical environment, macroeconomic situations, the reappointment of the CEO and the review of his compensation package, the review, the first sustainability report, the disposal of AXA IM and the acquisition a majority stake in Prima as was mentioned. For more detail, I suggest you look into the annual report. You will also note the excellent attendance rate to Board and the Board committee meetings with an average attendance rate of 97%.

Moving on, as mentioned earlier, in the context of reappointment of Thomas Buberl as CEO of AXA Group, his compensation package, which has remained unchanged since he was reappointed in 2022 was a subject of detailed review by the Board. In this context, the Board took into account, number one, the robust experience and influence of Thomas Buberl, his caliber as an insurance leader and in the market, took also into consideration the actual transformation of the group, which led to record results last year as well as very robust solvency ratio and took into account a benchmark of compensation practices and packages for comparable companies.

Based on this multiple factor review, the Board upon recommendation by the Compensation, Governance and Sustainability Committee decided that it should adjust some items in the CEO compensation package, starting from the reappointment. It is specified that the CEO compensation policy as approved by the shareholders' meeting held in 2025, will remain valid and applicable until his future reappointment. Board decided to set this growth -- annual growth compensation to EUR 1,850,000, and the target flexible compensation being increased to EUR 1.95 billion while maintaining the existing deferred mechanism and mechanically the long-term compensation based on shares, aligning the compensation with CEO with the long-term performance of the group and shareholder interest.

It is to be noted that the CEO does not benefit from any top-up defined contribution pension scheme conversely, he benefits from an action performance share performance, which is dedicated to pension. This plan is granted to all executives of group entities in France. He benefits to a severance compensation, subject to performance conditions, the amount of which being set to 12 months of compensation it being increased by additional month for every year of service. The Board decided that this compensation package would remain unchanged throughout the next term of the CEO, i.e., until April of 2030 as has always been the case in AXA.

The Board considers this new compensation policy has been adapted to AXA Group's profile and its relative position inside the panel of European insurers and banks while remaining competitive across the 4 years of this next term. In addition to this, the Board sold to it to continue to align the interest of executives with those of shareholders. For more detail, I suggest that you look into the universal registration document for fiscal 2025. This compensation package being subject to strict performance terms and conditions and being fully aligned with group strategy aims at fostering the convergence of the interest of the CEO with that of the company and its shareholders over the medium and the long term.

These performance conditions and terms are showed up here up on the screen behind me, the performance terms and conditions for the variable portion and the performance shares remaining unchanged. In 2027, the Board will be reviewing his choice and the weight of the financial and nonfinancial performance indicators so that it may align them with the directions of the new strategic plan for 2027 and 2029.

I suggest that we now review the variable portion of the compensation of CEO for fiscal 2025. Remember that the assessment of the annual performance of this year is based on 2 components: the group collective performance, accounting for 70% and the individual performance, accounting for 30%. The group collective performance is being assessed depending on 4 criteria, underlying earnings per share, cash remittance, the reduction of the carbon footprint in the own assets of the group and the clients recommendation score.

For 2025, it comes out to being 107%. The individual performance of the CEO has been assessed according to the goals and targets set by the Board in the early part of 2025 and they are shown here up on the screen. This individual assessment was assessed to be 115%. So the overall performance of [indiscernible] for fiscal 2025 has been weighted comes out at being 109.4%, representing an annual variable portion of EUR 1,914,500. This includes the deferred part of this compensation package.

As mentioned earlier, a deferred payout mechanism covering 30% of the annual variable portion over a 3-year period is being applied. The amount actually paid out will depend on how the stock price changes throughout the deferred payment period within the limit of a cap of 130% of the deferred payout. The Board saw to it that the assessment of the annual performance level of the CEO and that of the group be relevant with respect to the achievements and that will be aligned with shareholder interest.

As you may know, AXA has been leading policy to grant performance shares to its employees in France and in its international subsidiaries and entities in 2025 and 2026, on 6,000 employees were granted performance shares which are subject to performance conditions, irrespective of their profiles and statute the performance criteria has reviewed and revised by the Board in late 2025, cover both the performance of the operating entity for 35%, the financial performance of the group, 35% and the sustainability performance for the group for the remaining 30%.

Finally, in line with the best industry practices as well as in line with the recommendations of regulators of finance -- the financial industry and other stakeholders, the performance shares granted to the CEO. In addition, 2 big subject to a 3-year lock on lockup period -- sorry, in addition to being subject to a 3-year vested period are subject to a 2-year lockup period in March 2026, 117,708 performance shares with an IFRS value of EUR 3,128,832 have been granted to the CEO. These performance shares are vested without dilution for the shareholders given the choice made by the shareholders.

I suggest we now look at the compensation for the Chair of the Board when he was appointed and in line with the asset made code of conduct, the Board considered that the compensation package, which will be the most appropriate, consistent in paying out to the Chairperson of the Board, a flat compensation is being set to EUR 925,000, this is the amount to be paid out to the Chairman for fiscal year 2025. The proposal is to maintain the compensation package for the chairperson of the Board as well as the compensation packages for the directors to be unchanged for 2026 these being considered as being adapted, fair and well balanced. So no change is being proposed.

Finally, as is the case every year, I would conclude by a few words on the profit-sharing schemes for group employees. As you may know, the group offers employee shareholding scheme called Share Plan in the form have a rights issue, which is referred reserved for them. For fiscal 2025, celebrating in the 40th anniversary of the AXA brand, the AXA Group employees benefited from additional matching mechanism with 1 share freely offered to 4:1 share board with a limit of 20 shared Board in total more than 42,000 employees in 40 countries participated in the operation, up 61% compared with 20:4. And the total subscribed amount was EUR 435 million. In order to avoid any dilution. It was proceeded with as in the previous years to the buyback and cancellation of an equivalent amount of shares.

As at the 31st of December 2025, the employees -- and the agents of AXA Group held 4.87% of equity capital and 7.04% of voting rights for the AXA Group.

Ladies and gentlemen, this concludes my report. I would like to thank you for your attention, and I turn over to Antoine, to our Chairman.

Thank you very much, Guillaume, for this presentation. Let me say that the report on corporate governance has established in line with articles L.225-37 in sequel and AL-22, 10-8of the commercial code are in the universal registration document for fiscal 2025. And I will now ask Mr. Pierre Planchon of KPMG S.A. to now make his report for the statutory auditors.

Mr. Chairman, ladies, and gentlemen, dear shareholders, in my capacity as statutory auditor for AXA Group and on behalf of KPMG and Ernst & Young, I will briefly and summarily review the key facts in our reports to your meeting today. Our auditing work covered 4 key parts. The auditing of the parent company and consolidated financial statements as well as specific procedures provided by law, the related party agreements, the equity operations and an issuance of securities. And finally, the disclosures on sustainability, including that of the European taxonomy. Our auditing work was jointly conducted by the 2 accounting firms covering all of the significant entities and units of the AXA Group.

With respect to the parent company financial statements of the AXA company, we have provided an unqualified opinion on these financial statements. Our auditing led us to especially focus on the valuation of equity interest in related companies or having equity ties and also we looked into the valuation of claims-related provisions under the reassurance contracts we have no comment to make under this specific procedures with respect to the financial -- the consolidated financial statements, we are providing also an unqualified opinion on these consolidated financial statements knowing that our auditing work worked on the assessment of the liabilities in the health and health insurance B, they measured according to general model or the VFA model.

We also looked into the assessment of the claims-related liabilities in P&C business, especially with respect to long tail -- to long-tail branches as well as the assessment of the intangible assets, the recoverable values of goodwills connected with the P&C portfolios. We have no comment to make on the fairness of the information provided in the management report nor on the consistency with the financial statements. And we do confirm that the presentation of the consolidated financial statements abide by and comply with the unique European electronic format called ECAF with respect to related party agreements, we are reporting to you any related party agreements that we have made -- that we've been informed of. I can now tell you that no such agreements were reported to us nor any prior agreements, which would have gone on in 2025.

With respect to equity operations connected with Resolution #17, which is authority given to the Board of Directors for 18 months with a limit of 10% of capital to reduce capital over 24 months. Based on our auditing work, we have no comment to make on the causes nor on the terms for such capital reduction.

With respect to resolutions 18 and 19, which relate to capital increases, 1 resolution covering capital increased results for members of an employee sharing scheme and an increased capital reserves for any staff category, the 2 with the maximum nominal annual cumulative cap of EUR 135 million with authority given to the Board for the next 18 months provided that a subsequent review of the final conditions covering these capital increases. We have no comment to make on the way the insurance prices have been defined since these plants have not been decided upon today. We have no opinion to make on the conditions nor on the suppression the subscription right. But when such operations happen, additional report will be issued.

Finally, we have conducted the auditing work for disclosures and sustainability. We have based our work in the context of regulations, which are still fast changing in Europe, the publication of the so-called taxonomy dedicated acts, including the Omnibus package. Our role consisted in expressing a limited opinion on 3 things: the compliance of the process to establish these exposures on sustainability based on the IFRS standard. The compliance of such disclosures with the regulations and requirements and the compliance with the obligations and requirements under articulate on the taxonomy regulation based on these procedures, we have not reported or identified any areas emissions inconsistencies.

Without calling this conclusion to a question, we are drawing your attention on 2 aspects, which are shown in the sustainably report, the limits with respect to the calculation of the finance emissions and the carbon footprint of the insurance portfolio, #1 as well as the ways -- sorry, as well as the scope and assumptions taken to set the intermediary objectives by 2030 for access climate plan. By we have concluded all of the reports I have just mentioned, we are providing a qualified opinion for with no comment on them, which would call our assurance to question.

Thank you for your attention. I remain available any questions.

Thank you for this review and for this report by you as statutory auditors. We are coming close to the Q&A session with the audience. I suggest before we knew that to watch a short movie to present the shareholder.

[Presentation]

So this is the time for our discussion with you. By the way, before our session, we received 3 electronic mails concerning written questions. These questions were sent by [indiscernible] Finance and by Mrs. Catherine. These questions as well as the answers provided by the Board of Directors are on our website in a heading dedicated to written questions.

Some other questions were also sent to us, but beyond the time frame required. So we will answer all these questions as we always do as part of our relation with shareholders. But this will take place, of course, beyond the legal framework of our session.

Having said that, I suggest now that we open the floor. I ask shareholders in the room who want to ask questions to express themselves with the hostesses who are in the room in order to give a maximum of possibilities to maximum of people, please be very concise as much as possible.

By the way, if your questions are related to a contract to claim or I urge you to go to the client stand, which is at the entrance of this session. Our expert teams are available there to answer your questions in a more effective way than we could do it here.

So let's take the question from the front row. Sir?

Hello, Chairman, dear friends, well done for your performance. Here are my questions. It's essentially about AI. Is this an opportunity, a threat for the AXA Group? And what is the ecological impact of it?

Thank you for this question, which is at the heart of our thoughts. And as you noticed, we have several times have been talking about it, about this AI. First of all, let me point out that AXA was ranked first among the major insurers by the professional ranking for the degree of preparation to this technological revolution. For us, obviously, AI is an opportunity that is a major one, and we already saw that it is a great accelerator in order to enhance the service we provide our customers. Files are dealt with much more quickly and risk expertise assessment and appraisal is done much better, and this helps us concentrate teams on the real high-value and human actions.

So we have no doubts about this. It's an opportunity, but it is also a challenge, a challenge, which in light of the deep transformation of our organization of our working ways of doing things, we are convinced that this challenge, we will meet it if we can involve the people at every level of the organization into implementing these new tools, and this is the strategy that is being rolled out. And to answer more precisely to your last question about the risk of contradiction with the climate commitments. I think that risk can be managed if you speed up the energy transition and in regard to the development of decarbonated energies. It is the strategy we have, and we are contributing at our scale to a good reconciling of the data centers, the AIs together with the speeding up of the energy transition in order to avert to be in a situation where we are in a contradiction.

There's a question on the right-hand side, question # 7.

Would I have a question -- one single question, you'll be happy that deals with your earnings. You gave results, which are increasing by 6% or 8%, 10%, which is far higher than inflation. I congratulate you for that. But you essentially gave the underlying earnings per share. I was surprised that there was no net income. So I looked at the P&L of the financial report, and I saw that the net income was from under EUR 8 billion to just under EUR 10 billion, which is an increase of nearly 25%, which is huge.

By looking at the item -- the previous item, I saw that the profits or losses of businesses was more than EUR 2 billion. It was EUR 155 million before in the previous year. The results that you gave reflect, of course, the changes in the industry. Apparently, it's an exceptional profit related perhaps to a divestiture. I don't -- I've looked everything. You didn't mention it, I think. What does it correspond for? And by the way, this a good credit that I give you is that you have 2/3 of what is distributed. You were modest because you didn't mention the net income nor the top-up that you have deferred. So financially is very good. So tell me this sharp increase in the net income, what can it be equated for?

Thank you for your question and for your watchfulness. Thomas, thank you for your questions. First of all, we are looking at the 2 lines, the underlying earnings and the net income because both are very significant for us. Of course, you did notice that there is definitely a sharp increase compared to last year. It's due to the divestiture of AXA Investment Manager. You will recall that we decided with the Board to divest that subsidiary, which was an entrepreneurial creation with a lot of success, but we then found itself in an environment of increased competitiveness globally speaking, at the BNP, that transaction was closed in the middle of 2025. And therefore, because the company was an internal creation with a few acquisitions. In the meantime, the accounting value, the carrying value in our balance sheet was below the sales price at EUR 5.4 million. And why -- this is why the company made a capital gain, which represents exactly the amount that you mentioned, sir.

Let's stick to this area of the room. Question #6. [Foreign Language] the NGO Reclaim Finance for 4 years, I've been coming to the session as in every year. I'd like to ask a question before all of this, I'd like to come back to the exceptional earnings of your group, record sales, 75% going back to the shareholders. And based on these results, the climate change impacts everyone, except AXA. Your shareholders applaud know the price to pay for strategy globally, you increased your prices on average by 25% in the last 3 years and reduced sharply its exposure to nat gas, especially via AXA XL.

AXA continues to feed the climate risk and reduces its exposure in parallel. And despite your commitments, you continue to ensure and finance the development of oil, gas and liquefied natural gas. And this is a stained when you hear from your managers talking about prevention, which is mentioned by several people here. My question is the following. Therefore, when will AXA stop feeding the climate crisis by stopping any support through its investments to the development of oil, gas and LNG? And when will you finally apply to your business your own prevention message?

Thank you for your question, which is very clear. I will let Guillaume Borie answer.

After having specified before that, that, obviously, the -- we are not moving away from our climate targets, which are among the most ambitious in our insurance industry. And we several times have raised it even further. And gradually, we are trying to continue to make it even more ambitious.

Thank you for your question to come back to 2025 compared to your questions, we are continuing to support our clients about these climate catastrophes. Yes, it's better now. And in the face of the various natural risk as regards to the increase of our prices, bear in mind that the cover of climate risk is just a piece of the cover we offer our clients.

In fact, prices have been increasing in the past few years to cover the increase in climate risk because in our business, we try to mutualize risk. So when the increase on average, certainly, the premiums increase. It's a need to allow us to continue to stick to our commitments over the long term. And therefore, this is what we did in full responsibility to be able to continue to support our clients.

One example, just in 2025, we compensated for several billions of climate claims in France, it represents EUR 438 million of compensation paid to our clients in the face of the various natural events. De facto across the globe in 2025, climate catastrophes were significantly lower, which reflects what we know. Years may be volatile from 1 year to the other. It doesn't change the long-term trend for the past 20 years on average, there's a sharp increase of these climate-related catastrophes, and we continue to support our customers in this regard.

Alongside this, that we continue to have a very ambitious policy when it comes to the fight against climate change and encouraging adjustment to such change. For this reason, we committed ourselves to fully move out coal by 2040. Since last year, we no longer ensure no new gas or oil project with the exception of some specific players that who we consider have a climate transition plan that is believable. Why? Because in order to support the energy transition, there's a need for capital. So we consider that it's also our responsibility to continue to support the players who have a transition plan and necessarily need not only investment, therefore, capital, but also ensure to allow us to develop these new projects they have and very often to develop them, they need to continue also the existing projects that provide them the necessary capital in order to follow this innovation path.

So both go hand in hand. And each time we examine with great attention, the existence of a credible transition plan. And if there isn't any, we do not support those players, whether it comes to investments or in terms of insurers to be perfectly exhaustive. I conclude on your last point concerning the LNG liquid natural gas projects. We no longer are ensuring we do it for this in a particular geopolitical context because we consider in order to allow the European Union to stick to its decarbonation goals, given the current circumstances, action, access to liquefied natural gas remains necessary to provide the security of -- and good supply of energy, and we continue to encourage the decarbonation strategy. This is why we selectively support some specific projects related to LNG.

Thank you, Guillaume. Let's move to the other part of the room for your further questions.

Francois Chermon, member of the Advisory Committee. Let me come back to the geopolitical context, which was listed as a second risk by all the experts in your excellent report in this world, which is more unstable. Therefore, the legal frameworks seem uncertain. Your clients and companies, are they still resilient? And what about their investment decisions? And what about the general public? It is at a loss and being rocked by the various announcements. What are the major risks that may impact the group? And what are your action levers?

Thank you very much. Thomas possibly could answer this.

Thank you, madam, for your question. You are totally right on 2 aspects. the future risk report is a very good way to summarize the complexity of our current world and environment because we note that the risks have changed in their dominance and in their priority levels and also the context has become much more difficult with respect to interconnections across these risks. At the time, in the past, risks were quite distinct and separate. Now they are very much intertwined. And we are experiencing an area of so-called poly crisis where we're experiencing successive crisis in chain. So we had pauses at the past in between 2 crisis. We no longer have these pauses.

Now obviously, this situation is very uncomfortable as a situation for our corporate clients, but as well as for our retail clients because both companies and citizens are affected by geopolitical instability every day. I just mentioned the price of oil, the price of food and how all these are affected. But you're right to say that our corporate clients have been suffering the most and have been approaching us and challenging us with many questions.

This is so many opportunities to help them, to support them, to advise them and to guide them into the way they can navigate and manage these risks. Now today, we have lots of products and solutions and services, which try and address these risks and contingencies with respect to insurance cover and with respect to prevention activities because in a world which is more and more fragmented, it is important that we anticipate the next issues, the next announcements in order to provide optimal protection.

And jointly with our clients and customers, we continually review and revise their hedges, their prevention and protection programs to continually optimally adapt. For AXA, it means that in a more and more uncertain world where we find it difficult where the next blow, where the next issue will come from, it is of the greatest importance that we diversify, that we diversify investments, but also that we diversify our risks. What does this concretely mean?

It means that we take up lots of risks here and everywhere. But the net exposure levels against each and every risk, we have tended to limit. And it is true also on the side of investments. And you may have noted that in the last 4 years, across the crisis that we have experienced that AXA has always been affected to a more or less degree by this crisis, but to a more or less degree, means that there never was a crisis where AXA was affected to the root, was fundamentally affected. And this diversification policy which has helped us control our risk better every day is a key approach going forward in order to manage this big ship, which is AXA Group and also to be able to reimburse claims every day to our clients and help them in their prevention activities.

Thank you, Thomas. Let us take questions from the bottom of the room. Question #4.

I'm an individual shareholder. I would like to know whether you have already had your 2026 finances affected by the war in the Middle East, especially with respect to the P&C claims and damages for the mid-market and SME companies.

Now it is a very current question. So I will have Guillaume answer, but I can tell you that we have been very little affected by the crisis, but we've been extremely watchful, says the Chair to anticipate any future developments in this waring situation, which may generate more significant and more dire conditions.

As our Chairman said, we have limited exposure to this Middle East region. We have teams in the field with whom we are in daily contact, and we whom we support, obviously, in Dubai to support some of our clients in international health care business. And in Lebanon, we have a joint venture operating in Lebanon above and beyond these field teams and our local operations via our insurance cover for large corporations under AXA XL's operations, we've been providing insurance cover to large shipping companies and to large airlines, which obviously have been massively impacted by the situation. But as you may know, today, destruction of civil infrastructure and vessels and aircraft have been very limited.

So we have been able to manage the consequences, but we remain very much engaged in support of our clients. And we need to keep being able to support and help them to manage their future projects. And you heard about the discussion to maintain and uphold insurance -- marine insurance cover to make sure that shipping lines and marine operations remain covered by insurance products, and we remain close to these clients.

Thank you, Guillaume. Let us go back to this part of the whole, question #7.

Yes, hello. We can see that the disposal of AXA IM boosted the performance of BNP Paribas. What will we be doing in the windfall proceeds? Will you be reinvesting in the P&C in health care or in other sector of the company? In France, there is one fire every 10 minutes. It isn't it the role of insurance companies to work ahead of time to prevent risks by implementing preventative activities, better knowing your clients, better knowing the state and conditions of their buildings and of their facilities to prevent fires, which are very frequent in France.

There are 2 very different questions. The first question, we already have touched upon because we have mentioned in a very explicit manner how we were going to be using the proceeds of this disposal by returning part of it to our shareholders and by keeping part of the proceeds to fund our investments, including capital expenditures in technology solutions, which are of great importance. And if there are opportunities out there, we may seize them for external growth investments.

The second question is on prevention activities, and Thomas will answer this.

Thank you for your question. So as I already mentioned in my presentation, it is very important for us that we focus our operations on purely insurance business operation. This is why it was logical that we should dispose of the asset management business. You heard and saw from my presentation that we acquired a company called Prima. Prima is a direct insurance business operating in Italy and in a few more countries. And this is a good example of an opportunity which we seized in which we reinvested part of the proceeds from the disposal of AXA and because of EUR 5.4 billion disposal price, we used EUR 3.8 billion for the share buyback program to balance out the loss in earnings and the variance has been available to conduct acquisitions, including the acquisition of Prima. And I can tell you that ever since the acquisition of Prima, the operations have been going very well in Italy.

Now as to your second question about fires, you are totally right, sir. It is quite horrible to see that there are so many fires in France. Continually, it unfortunately has become a new normal. Indeed, prevention activities are already of great importance for us and will be even more important for us in the future because with a rising number of risks, you have an increasing ticket, an increasing price for this risk to make sure risks remain insurable and that insurance cover remain a product that anyone can afford being insured that is we must push prevention activities much more.

We have been working today in pushing prevention and preventative activities against fires because when you take out insurance cover for a plant, you have sprinklers experts who come and inspect your sprinkler system to check that the sprinkler system of the facility comply with the current standards and update them as needed. And new technology like sensors and AI solutions push the limits and help us go further because we know that you have constraints with human activities.

With technology solutions, you may have a 24/7 monitoring with a much quicker intervention rather than human experts. So it is very important for the future that we place a greater focus on prevention activities.

Thank you. Let us go to the back of the auditorium. Question #9.

Hello, everyone. I'm an individual shareholder. What strategy are you putting forward to develop and expand in countries which have a culture to be reluctant to and not be too open for insurance products like Southeast Asia. You said that a strong value and attribute of the group is boldness. Having personal experience in the field of insurance, I can give you my contact details after the shareholders' meeting.

Well, we'll be very happy, sir, to get your contact details. Now with respect to Southeast Asia, what can Guillaume -- thank you, Sara, and thank you for your question. We have a presence in Southeast Asia, mainly in 3 countries: Thailand, Indonesia and the Philippines. In these 3 markets, we operate in partnership with local partners. These major characteristics of how we've been expanding in these countries. We usually go hand-in-hand with a local partner, which generally is one of the leading national banks, which makes it easier for us to reach out to customers and clients to understand the cultural specifics right from the start. And you're right that insurance is a very local and specific offer, which is very much rooted into the culture of each country. And when we have a local partner, it makes it easier to penetrate such countries.

The second key factor is that in these 3 countries, one of the fastest developing channel is by way of agents, which are not banking agents. And these agents are usually individuals who distribute insurance products in addition to other professional activities, knowing that they do not work full time as we may have the situation in Western Europe, which means that we have a very high number of such agents in those 3 countries in order to be effective at the commercial level. So these are our 2 main drivers.

In complement to that,in these 3 countries, as is many other emerging countries for the last 8 years, we have developed a so-called inclusive insurance offering, which aims at developing products, which are bespoke customized products, meeting the needs of the local communities, especially low-income communities where we really have to focus on the basics. And this is why we have called -- this unit at AXA called AXA Essentials. And in the world, we've been covering more than 20 million policyholders via our inclusive insurance solutions.

I'd like to insist for a few moments on the last point mentioned by Guillaume because AXA was a precursor when it comes to inclusive insurance, as we call it, that is offers in order to improve the cover of low-income populations, in particular, in emerging countries in which we are present, but not only. And all in all, today, we have over 20 million clients around the globe who are part of this category. Many of our competitors are starting to develop now fairly comparable approaches, but I think we were the ones who blazed the trail. So unfortunately, we cannot take -- we can take only 2 questions, maybe #3 to remain in this area of the room. Microphone.

Jean-Marcernore, former employee at AXA. AXA is also a bank. I'd like to know if the bank is still part of the main focus of AXA, strategically speaking.

Thomas?

Thank you for this question. And I'll share with you an experience from the ground because last week, I was in Lyon and visited an agency. And after I said, hello, listen, Thomas, the bank is really what helps us go forward with the insurance. That's the feedback that you get everywhere from the agents because the bank plays a significant role in creating the loyalty of our clients in the frequency of contact as well because many times, and I say fortunately, in the cases of claims, unfortunately, we have very few contacts with our clients. And the bank has that element of contact frequency.

Of course, in a world that is increasingly becoming difficult when it comes to regulations, we must also think about how we can, in the best possible way, work in this framework while retaining a banking offer. This is why several years back, we decided to work together and create a partnership with a bank that lends us their infrastructure so that we can be 100% in contact with the banking rules and at the same time, be able to offer products that our clients actually want from us.

And today, the situation is well stabilized, works well for us and the satisfaction of our clients is there in terms of the banking offer is very high. This is why the bank in France is definitely a key important element in our client relation.

Thank you, Thomas. Since the question was short and the answer was efficient, let's take 2 more questions, 2 last questions. Maybe #6.

Dear Chairman, hello, everyone. I'd like to come back to AI. We have talked at length about it this afternoon. The points are interesting for us are the following ones. What is the percentage of employees who to this day have been trained on AI? And also, what is the place of the human factor within the AI was not underlined very well this afternoon.

I have a second question, which is about people taking away the identity of people. There were some people who suffered from this in order to support them. Or are you thinking about guaranteeing something that could apply in the spoofing area. This is about spoofing.

I'll let Guillaume answer. On the first question, AI, I indicated it perhaps a bit too swiftly. For us, AI is more of a human challenge than a technological challenge. This is the state of mind for us when we take a look at this revolution. Guillaume, over to you.

Thank you very much, and thank you very much for your question, sir. Yes, as a matter of fact, first and foremost, it's a human challenge for us. And what we see day after day with all our teams is that AI is spreading across all our processes through the use that our own teams are making of AI. In other words, there is no other choice than adopting it because it is our teams that are requesting this. It makes sense because the use we make it as citizens or individuals, and then we expect that it will be available daily on our workstations in our working environment. This is how already for the past 3 years, there has been a speeding up of the use of many AI-based tools by our employees.

We were one of the first global groups of making available the language model that is the access to ChatGPT, which internally is called SecureGPT within a platform, which is secured. As you know, one of the challenges for us is that we cannot let the numerous data and the sensitive ones that we manage for our clients on external service. So we must assure that the use is made under good conditions.

Such massive development in uses has led us to rolling out training policies, which are systematic across the group. And one way or another, I can tell you that each employee has had access to training related to AI, which is quite different depending on their responsibilities and roles with it's very generic. It's very short training to remind facilitate access to these platforms. And for other sectors, it's more intense. For example, those who are technological solutions development, there are thousands of our employees who are working on the development of our services for our clients through our websites and platforms. And obviously, they have a more intense use of AI in order to facilitate their daily work, which was supported by training.

So you can see that across our AI strategies, there is, of course, the applications for serving our clients and it's also the transformation of industrial processes in terms of claims management and design of products and pricing. But more fundamentally, the battle we are undertaking is a good use and a good adoption by all our teams. So first and foremost, it's a cultural change in our company, which through the use of all the senior managers through the training of managers and through the availability made to all our employees around the globe of adapted solutions.

Thank you, Guillaume. One last question, short, please. We are really tight on time, number three.

Individual shareholder. I'd like to push further the previous question that was raised since the beginning of the session, we have talked at length about AI and risks. But in my opinion, globally, and even if the last question was a bit related to the human area, it's the human area, the training, the internal human elements and your relationship with your clients. And even if you have a ChatGPT, which is called secure and your own service, I believe that maybe you are aware that several days ago, barely file or database super secured of our interior ministry was hacked and millions of individual identities were stolen.

And my question, therefore, is in relation to AI, especially now with all these interconnected systems is where will we end in terms of individual freedom and the control element. All it takes is that these files fall into the hands of a malevolent manager, which we have seen in other parts of the world that we find ourselves in a society where there won't be any freedom left. And as you said before, I think that each person in this room should think very carefully before entering into ChatGPT or something sooner, which initially is not secured at all and puts in all the data that you put in and in several months or years, anyone can exploit them to monitor you on every gesture and fact concerning you.

Thank you for your question, which resonates with a concern, which is ours, which is at the heart of our thoughts and our work, of course, Guillaume.

Thank you very much for your question, sir. Obviously, you're raising 2 issues, which are absolutely basic. The first one is the challenge of sovereignty. And the second problem is about safety and security on sovereignty. These technologies de facto are available for the most solely coming from the United States and slightly from China and besides that, coming from a few global players. Therefore, it leads us to have a risk management policy that is very strict and discipline, which aims at diversify as much as possible the service providers and the nature of technologies used, but within the limit of what is available because we are facing also the realities of the world.

So in the current situation, certainly, we are also forced to call upon a limited number of possible solutions. It is not thinkable to move out of this right now. That's a principle of reality. And permanently, we check that we limit as much as possible such dependency and that we have reversibility options if ever in the future, other solutions were to emerge and be available. In the case of safety and security challenges, I was referring to this, in regard to our platform and all the solutions for our employees. The security and safety of our information systems is at the heart of our company's risk management and the monitoring of the Audit Committee and the Risk Management Committee of our company. And we review these programs on a regular basis to systematically reinforce all the security and safety with very concrete consequences, including for our teams for which and quite rightly, they may complain spontaneously. We ask several authentication. We check access to each system.

So we constantly monitor this, which is fitting the critical of the data. We manage some data are particularly sensitive. I have in mind, especially our business where we have insurance for this. We have standards that are even stronger and strict zero risk unfortunately does not exist, but we invest constantly more to limit as much as possible those risks and be able to respond very quickly when unfortunately, there is a hacking taking place, and we'll continue to do so in the future.

Thank you for your participation in this exercise. I think we had a very good discussion. I suggest that we move now to the vote of the resolutions.

Yes. Before Guillaume specify how we will be voting, let me read the final quorum. I give you the interim one. Things have intensified. We finally have 1,444,465,864 shares represented. They represent 71.23% of votes, which gives us a quorum of 72.21%, which is an excellent quorum. Guillaume, over to you.

Thank you very much. So this is the time you expected so much. Please give me the privilege of your attention for some practical information. You all have a personalized electronic voting box, which is on the screen. The screen on the box allows you to check the number of votes you hold or represent for our general meeting. To vote on each resolution, you must press firmly on one of the following keys: for green button, abstain, yellow button, against the red button. Your vote will be displayed for a few seconds on the screen of your box.

In order to vote within the allotted time, please wait for the indication Voting is open and limit your vote to one single vote per resolution. If you do not press any of the buttons, you will be considered to abstain from voting. I remind you that the poll is taking place under the supervision of Matt Com. And please note that electronic voting machines must be handed back to the hospices at the end of the meeting. Please switch now. We shall now proceed to vote on the resolution on the agenda for this meeting. I thank you to please switch off your cell phones for the duration of the call.

You are asked to vote on 21 resolution, 16 ordinary and 5 extraordinary ones. The resolutions which are ordinary ones require for them to be valid to have a majority of more than 50% of expressed votes versus the extraordinary resolutions, which require a 2/3 majority of votes. I suggest we don't read out the text of the detailed resolution subject to your vote. As mentioned early by our Chair, you will find them in the convening notice, which has been published in the legal gazette on the 27th February 2026 and which have been made available to you in -- under the legal conditions.

First 16 resolutions are ordinary resolutions. The first resolution relates to the approval of the parent company's financial statements for the fiscal year ended December 31, 2021. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. The second resolution relates to the approval of the consolidated financial statements for the fiscal year ended 31st of December 2025. Voting is open.

[Voting]

Voting is now closed. The resolution has been adopted. Resolution #3 relates to the appropriation of income for the fiscal year ended on the 31st of December 2025 and the setting of the dividend of EUR 2.32 per share dividend. Voting is open.

[Voting]

Voting is closed. The resolution has been carried. Resolution #4 relates to the approval of the information referred to in Article L.22-10-9 of the French Commercial Code relating to the compensation of corporate officers. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution 5 relates to the approval of the components of compensation paid during or granted in respect of the fiscal year ended 31st of December 2025 to Antoine Gosset-Grainville, Chairman of the Board of Directors. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #6 relates to the approval of the components of compensation paid during or granted in respect of the fiscal year ended 31st of December 2025 to Thomas Buberl, Chief Executive Officer of AXA Group. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution 7 relates to the approval of the compensation policy applicable to the Chairman of the Board of Directors. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution 8 relates to the approval of the compensation policy applicable to the Chief Executive Officer. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #9 relates to the approval of the compensation policy applicable to the directors. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #10 relates to the statutory auditor special report on agreements referred to in Article L.225-38, which states no new or existing agreements. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #11 relates to the renewal of the term of Thomas Buberl as Director for a 4-year term. The voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Congratulations, Thomas. Resolution #12 relates to the renewal of the mandate of Director for a 4-year term. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #13 relates to the renewal of the mandate of Director 3-year term. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #14 relates to the renewal of the mandate of Gerald Harlin as director for 2-year term. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #15 relates to the appointment of Philomena Colatrella as Director for a 3-year term. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #16 relates to authority granted to the Board of Directors to operate on the shares of the company within the limit of 10% of stock capital for a unit price of EUR 50 and for an 18-year period. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. The next 5 resolutions are within the remit of the extraordinary shareholders meeting. Resolution #17 relates to authorizing the Board of Directors to reduce the share capital through cancellation of treasury shares within the limit of 10% of capital share by periods 24 months and for an 18-month period. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #18 relates to delegation of power granted to the Board of Directors to increase the share capital by issuing shares, securities giving the right to the company's shares reserved for employees involved in sponsored company savings plan without prescription right of the share. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #19 relates to delegation of power granted to the Board of Directors to increase the share capital by issuing shares without preferential subscription rights of the shareholders in favor of a specific category of beneficiaries in order to enable employees, tied agents residing in some countries as well as corporate offices to benefit from this plan depending on the local specific terms to formulate as close as possible to those other beneficiaries of the group in the context of the previous resolutions. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #20 relates to amending Article 10C of the bylaws relative to the appointment of the employee shareholder representative to the Board of Directors in the context of vacancy complying with the rules of gender balance representation in the Board of Directors. Voting is open.

[Voting]

Voting is closed. The resolution has been adopted. Resolution #21 and last resolution relates to amending Article 23 of the bylaws relating to shareholders' meeting. Voting is open.

[Voting]

Voting is closed and the resolution has been adopted. Thank you all.

Ladies and gentlemen, I want to thank you again for your attendance here today. I hope this meeting was fruitful and answered your questions so that you may arrange for your agenda next spring. The next shareholders' meeting will be on the 22nd of April 2027.

On the way out, our hosts and hostesses will get your voting boxes back and will give you a so-called resilience kit provided by AXA Prevention business. In the current context, we thought it was useful to have such a resilience kit, which is made up of survival, blanket, lamp and a water bottle. I hope you'll be -- you'll never need to use it. Thank you again. And since no other items is on the agenda, I declare the meeting adjourned. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Okay. Good morning, everybody. Welcome to Morgan Stanley's European Financials Conference. For those of you who don't know me, my name is Hadley Cohen. I run the insurance research team here at Morgan Stanley. I'm delighted to be joined by Guillaume Borie today from AXA. Guillaume is the Global Head of Strategy, Underwriting, Risk, Finance and Technology. So Guillaume, welcome. Thank you very much for joining us.

Thank you very much, Hadley, and good morning, everyone.

First of all, can I say congratulations on the new role.

Thank you.

Only a few months in. Maybe to start, if you can sort of say how things are going so far, what you've been particularly pleased with, what you've been particularly surprised by and -- yes.

Well, look, I have to say that I've been lucky enough to join in this new role at a time where the group, AXA is in very good shape. You saw our earnings and results for '25, delivering really at the top end of all of our targets, strong top line growth, 6%, strong UEPS growth, 8% and also a clear confidence message that we gave you when we released our results.

We are committed to deliver at the top end of our range for '26 again. So the group is in very good shape. And I tend to say that all businesses today are really firing up, and we saw very positive dynamics across the board.

When I look at that, if I have to think about not surprises, but things that over the past few weeks, I've carefully looked at, it's the very fact that starting from this strong position, starting from very well-performing businesses, I do believe that there is still some upside for all of us. And that across the board, if we are extremely focused on a couple of top priorities, we have the ability to keep growing earnings at a sustainable pace year after year.

When I look at those priorities, I would quickly mention 4 this morning where I would like all of us across the group behind Thomas to really focus ourselves. The very first one is organic growth. We can do even better on organic growth, growing volumes. Why so? Because we have very strong margins across the board. We have really, over the past 10 years, managed to develop a pure insurance player with very strong level of technical discipline. It's a good platform out of which we can grow.

The second top priority for all of us should be to accelerate the scaling of our artificial intelligence solutions, accelerate really a high-quality AI agenda. I see that as a strong opportunity, and I guess we will have questions on that later, a strong opportunity to improve all the elements of the P&L. We can come back to it.

The third element is that I still see some room for improvement on the efficiency side. We can improve efficiency discipline across the board. Obviously, within our operating companies, more efforts on cost efficiency, more effort on automation onshoring, but also at the corporate center level on our holding costs.

And last but not least, we will continue to maintain extremely strong capital discipline, obviously, around our distribution policy, 75% distribution, but also around the way we deploy capital locally in order to fuel the organic growth and in order to fuel investment in artificial intelligence. So you see all in all, I think the group is in very good shape. All businesses are performing well, and there is room for further improvement around those 4 priorities. So I'm very positive.

Excellent. I think we'll come on to all 4 of those priorities in due course. But before I do, we're all for audience participation here at the conference. So we do have a polling question for you, which should come up on the screen in due course. And that is what is currently the most important investment debate for AXA shares and your choices are commercial pricing outlook and XL profitability, cash remittances versus shareholder payouts, capital management, so M&A versus share buybacks, lower EPS growth targets versus peers, French political risks or AI disruption risks and opportunities. And you have 10 seconds, which should start now.

Interesting commercial pricing outlook, XL, it's more evenly spread than I was expecting. And I can see Anu was taking bets in the front row as well. So maybe if we start on P&C more broadly, given that's where the majority ended up. But before we get on to XL, on European retail side of things, pricing has been very, very strong. It's been a useful tailwind for you for the last couple of years. How much more momentum do you think there is in those lines of business?

I think on the retail book in Continental Europe and to a certain extent in this country in the U.K., there is still positive pricing momentum clearly. So obviously, if you look at the absolute figure, it's going to reduce, and it has already reduced in '25, and it's likely to be the same trend in '26. But the absolute level is not that interesting. The question is the relative level against our claims trends and against also CPI.

The reality of the retail market is that we have been permanently able to really sustain pricing above CPI for the very fact that, first, this is more or less the claims trends in this business. And second, let's not also forget that we benefit across the board from relatively stable, if not reduced frequency of the risk that we insure. So again, the pricing environment, in my view, in retail is positive. And therefore, for us, I see that as a good opportunity first to further expand margin.

And I do believe that in retail, SME, in P&C across the board at AXA, we still have room to further improve technical margin and that you will see that in '26 and in the coming years. But on top of that, it's again a great opportunity for us to seize this opportunity, this pricing environment, this conducive environment in order to grow our book. And for that, we have very strong assets, high-quality distribution networks that we further expanded in '25, good partnerships in several European countries.

Look at what we did in Spain with Correos, look at what we did in the U.K. with the Lloyds Bank. So we have solid distribution partners, proprietary, nonproprietary. We have a very strong direct franchise, the leading direct franchise of all the international players in insurance. And we are permanently investing in customer retention.

I think that in the current environment, when you're best-in-class in terms of technical margins and pricing quality, the opportunity is also to further improve customer retention. Are we going to reduce customer churn? That's for me, one of the challenge we have, and I believe an opportunity in the end to grow our volumes.

Very interesting. And linked to that, how -- so can you talk a bit more about this customer retention? And what you're doing to sort of focus on that, be it with regards to cross-selling products or what have you? But presumably, this is all a key part of the organic growth story by reducing the churn.

Yes, absolutely. And that's not only a key part of the organic growth story, but that's also, in my opinion, the best position to be in because by definition, the more we will retain our existing customers, the more benefit you will see both on the top line but also on the bottom line because when we retain customers, it's better margins. We know that. And we live in an industry where attracting new customer is extremely expensive. So the more we can do to best retain our customer, the better it will be for all of us.

Where do we focus ourselves? I see really 3 areas. First, it's a matter of pricing adequacy. Are we able in our retail books to really price each and every customer at the right level? It's not an anecdote. Over the years, many of the players in this industry have the habit of pricing across the board and pushing price increases at every renewal that are exactly the same for all their customers. We see that a lot in our local markets with the small players in the market, for example, mutuals.

We have a much more personalized approach to pricing, including through AI. With AI, we now have the opportunity really to revisit the pricing at the level of a single policyholder. So you need to have a better offer at renewal for the best customers in your portfolio. That's the first element of customer retention. To a certain extent, in my view, it's the most important one.

The second top priority is around distribution efficiency. How do we make sure indeed that we invest in cross-selling because we know that, obviously, the highest number of the policies for a single policyholder, the best retention you're going to get. But also on distribution efficiency, making sure that they know how to defend their existing portfolio. It's the quality of the solutions we give them, including in terms of CRM solutions. It's also the quality of the products and solution we are offering on the platform.

And last but not least, on customer retention, obviously, quality of the service we provide. We have invested a lot on those questions. You see that with the high quality of our NPS score across all of our retail operations. We need to continue to invest on that. And there also, I see strong opportunity with AI in order to be much more efficient in the way we pay claims, the fastest possible and in order also to deliver permanent advice to our customer, in particular, through their smartphone or all the platform they are now using.

We'll come on to AI shortly. But I think the organic growth story and the strategy there is quite clear on the retail side. But if we move maybe to the commercial side of things, there is clear pricing pressure in that market right now. So how are you thinking about top line versus bottom line for the XL business and commercial lines more broadly?

So first, I think it's important to keep in mind that when I look at the P&C business of AXA, it's EUR 58 billion book. Out of this EUR 58 billion, 2/3 is retail SME mid-market, mostly in Europe. Those 2/3, they are going to follow the trends we have just discussed before. Good pricing environment, still opportunity for us to further expand margins. It's true also in SMEs and good opportunity for volume growth. So there again, it's not the same trend as the trend we are seeing on the large commercial book of XL, which is 1/3 of our portfolio.

On the XL portfolio, yes, the environment is more competitive. It's a fact. Then can we say that there is one cycle across the board? I don't believe so. And I think that much more than focusing ourselves on pricing cycle, we should discuss pricing adequacy. We do have opportunities to grow our portfolio at XL under very good margins and with good profitability. We have profitable growth opportunities. XL is not just a book in the U.S., for example. XL is 26 countries, 400 products, well-diversified book of business.

When you look at the split of the business, you have casualty, you have property, you have professional lines, you have specialty. And the trends are very different from one book to another. So the name of the game for us is diversification and agility. Over the past 3 years, we have prepared ourselves for this environment. How? By changing the way we incentivize our underwriters across the world, by developing a much more agile portfolio management process within XL under the leadership of our CEO, Scott Gunter.

And today, they are able to grow where they want to grow because they see attractive margins. They are able to reduce the exposure where they no longer want to have this exposure because we are not able to get the right capital returns. So how do we look at the development for each and every book. And again, 26 countries, 400 products. So there is not a single policy or a single view of the pricing environment.

For each and every book of business, are we able to grow above our capital hurdles? When the answer is yes, we need to grow, and we will grow. When the answer is no, we reduce our sensitivity to the business. That's why also when you look at the book of business 3 years ago, it was not the same as today. And the mix will keep evolving in the next 3 years.

Can I tell you today exactly where it will be in the next 3 years? No. Because again, it's a matter of agility in the underwriting teams. What I can tell you though is, one, we will protect our margin. So we grow when we see profitability. Second, that's what you saw in '25. Even if overall, when you look at the XL Insurance book, you see stable pricing. It was 0% price effect for XL Insurance in '25. You have seen growth in volumes, 3% on average. So that's exactly the indication of what I mentioned earlier.

Third, it's not just stable technical margins. We are also able to work on the other elements of the P&L. And when I look at XL Insurance, what do I see? I see permanent focus on expense discipline. You had an improvement on the expense ratio in '25. We will keep working on it in '26 in order to have high-quality earnings. Second, we are benefiting from the good reinsurance environment. We had very good reinsurance pricing at renewal this year, in particular on the property side. Obviously, you will see this impact in the P&L.

And last but not least, while not changing our asset allocation strategy, we are improving the investment income. Why? Because obviously, we are investing at a better yield as we speak, given the interest rate environment. So all of this is conducive in my view, to earnings growth at XL. And therefore, when I look again overall at the situation, I see the commercial book of AXA XL as a good opportunity for us to further expand EPS growth for the group.

Very comprehensive. If we maybe change tack slightly and go on to the hot topic, the AI conversation. One of the comments that you made on the results call, which I was particularly interested by was that you think you've already seen a one point benefit on the claims ratio from AI implementation. I was just wondering how you measure something like that and also how you think about the scale of opportunity still to come from that respect.

Well, first, I would say that I really see AI indeed as a great opportunity for us. When you look at the insurance industry, the reality is that over the decades, we have been struggling, all insurers with one basic element of our model, which is that on the one hand, you want to obviously industrialize as much as possible your processes to get more efficiency, to be more agile. And on the other hand, if there is one business where ultimately, the end customer is expecting a very personalized answer, it's insurance.

And I do have the view that it's much more the case with insurance that with any kind of other businesses, starting, for example, with banking, much more because why you want to really personalized solutions in terms of underwriting. It's true, obviously, for companies, but it's true for retail consumers as well. And also at the point of claims, that's when you expect your insurer to be extremely personalized in the way the insurer will answer to your claim. So it is a clear tension in our model.

With artificial intelligence, we finally have the technology to solve both issues at the same time, really industrialize at scale and really delivering personalized answers along the value chain. That's why I see that as a strong opportunity. But it's a technology change.

As with any kind of technology change, the name of the game will be, are you able to invest enough? Do you have the scale to really put this innovation available to anyone? Do you have the right distribution networks? Do you have the best teams to make it happen? Those questions, they are not going to change. So it's a basic, I would say, a basic metaphor that I will use now, but you take the best motor engine in the world. If you put it in the hands of the worst car manufacturer, it will yield absolutely nothing.

We have the same question with AI in the insurance industry. It's a wonderful technology, but it doesn't mean that you can succeed whatever your size, the quality of the people or the quality of your competitive moats. I do believe that with AXA, we have the right assets in order to make it happen. We have invested a lot over the years in the quality of the technology platform, fixing our legacy issues. We have a gigantic amount of data that is available in our systems. And we have very strong technical people that are able to train the AI in order to get the best answer. And you need to have this intellectual knowledge in your company if you want to make it happen. So that's the opportunity.

I will answer your question on where I see the impact very quickly. Impact is on 4 dimensions in my view. First, on distribution. You can improve the productivity of your distribution with AI. We are already doing it in several countries. One example in France, now 2,000 tied agents are helped on a daily basis with an AI assistant to get the best answer possible to the customer they have in front of them. It's improving their productivity at least by 10%. We are still working on the measurement, but we really see improvement in the productivity. That's going to be more top line. That's going to be also better answers to the customer needs. So I make the assumption that it will improve the loss ratio ultimately and the quality of the technical excellence.

Second area, pricing. That's where at this stage, we have already seen the biggest impact. That's the one point improvement in the loss ratio that we mentioned in our call when we released earnings. How so? We are investing again in the quality of the pricing, dynamic pricing, making sure that we use much more data points. I will give you a basic example. We recently acquired Prima in Italy to price any kind of risk, they are using 130 data points. The second best-performing business at AXA is our direct business in France, direct assurance. They are using 80 data points. So you already see a gap. The more data points you're going to get, the best pricing, obviously, you're going to have.

When I look at deploying that kind of AI tools, so now we are working on motor pricing. We have a tool that we are deploying across markets. It's live in France on the book of AXA France, not just the direct business. It's live in Spain. The nickname internally is Photon. We deploy this tool now in other geographies. When it's deployed, we see this one point improvement in the loss ratio against the books where we have not deployed it yet. This is the one point that we mentioned. So on pricing, it's already working. The more we will deploy it, the better you will see the impact on the loss ratio.

Third area of focus on claims management. There also, we need to work on the 2 legs. Speed. With AI, we will be much faster in the way we settle claims. We all know that in our industry, the fastest you are on claim settlements, the lower the cost of the claim. So that will be a benefit on technical excellence.

On top of that, with AI, we are already seeing improvement in fraud, abuse, waste detection. It's already yielding results across the board, in particular, again, on the retail side. We will accelerate our efforts. That will help us improve further the loss ratio there also. And last but not least, fourth area, in general, yes, we expect an impact on productivity coming from AI. Productivity in terms of speed, our people are going to be able to work swiftly through AI tools and productivity also in terms of time to market, in particular, on the technology side. And let's not forget that the bulk of our costs are coming from technology cost. If I'm able to use those costs much faster, I'm going to put solutions on the market that are more innovative, more adaptive to the customer needs. It will drive accelerated top line growth while lowering my expense ratio.

So when I look at AI again, at AXA, we believe that it's an impact that will go far beyond just the expense ratio. And that's important because the expense ratio, it is 10% of the P&L. If I can impact the rest of the P&L also with AI, the value we will unlock is going to be far greater for all of us, so that's good news. But again, and I will conclude there, the name of the game for all of us will be to make sure that we are fast enough in deploying this technology at scale. And there, I do believe that we have great assets in our hands, starting with the quality of our people, the quality of our brand and our local scale across markets with the distribution networks. That's what will make the difference on the ground.

That was an incredibly comprehensive answer.

Sorry, maybe a bit too long. I'm passionate about that front.

No, no. Absolutely. You've already answered a lot of my follow-up questions. But I think there is -- and you've touched on this around your scale, your speed to market and what have you. But there is a lot of debate in the market right now around the influence of LLMs from a distribution perspective and what have you. It sounds like you're well on top of that. But do you see -- do you perceive any real threats from AI? Or do you think you're so far ahead of the competition that actually it's not really a concern for you?

Well, of course, you need to be permanently obsessed with potential threats. And you cannot afford to rest and think that you're on the safe side. So we are extremely mindful of those evolutions. Again, I see that much more on the opportunity side than anything else. And again, look at the distribution question. It's a change in the way we will interact with our customers. But insurance is not -- has never been just a front end. It's a lot of capabilities in the end.

So the question for us is how we use AI in order to transform all of our capabilities. If customers going forward want to interact with us through an LLM platform. The question for AXA is, how do I make sure that I'm the first one on this platform. That's the question we had to solve 20 years ago when price comparison website started taking off, and we have solved it. In many of our markets, we generate 25%, 30% of our retail business through that kind of platforms.

Look at Continental Europe, we have the best divergent networks across Europe. In my opinion, it's really the best networks, but they generate today a significant bulk of their business through Google price comparison website. They capture the customer there with the help of our technology stack. And then they transform this lead into a multi-equipped customer where we create a lot of value. LLMs are not going to change the fundamental points.

The question is where you access the customer. If LLMs are taking off, we will be there. And we are already investing on that. We have deployed an engine across all of our operating companies in order to help our marketing and distribution teams assess where we are positioned in the LLMs. And when we started deploying that, guess what, in many markets, we were down the road, really like #5, 6, 7 when you were asking on ChatGPT, for example, where can I buy my motor insurance? We are catching up very quickly.

I want us to be permanently in the first row, and that's exactly. But again, today, how many of our customers are coming through those LLM platform, less than 1% of our new business. So it's a minimal question today. Tomorrow, we will adjust. That's the way we look at it. We need to be agile enough in order to find the customers where they are. Again, it will not change the many assets you need to have if you want to be a great insurer.

If I think about bigger picture, and we're coming towards the end of the current multiyear plan. You're expecting to deliver at the upper end of the 6% to 8% annualized EPS growth. I mean how should we think about that 8% effectively EPS growth going forward?

And the reason I ask that is a couple of things. One, you're painting a very positive picture around how much growth there is still, how much efficiency improvement and how much momentum there is in the business right now. And equally, I look at your current 6% to 8% target, and it is towards the lower end of what your large cap peers are targeting as well. So how should we think about the momentum of the business given you're delivering 8% growth right now going into...

So I don't have any scope to share with you today, and we will all meet on September 21 for the next plan. When you look at us, I believe that the way you should think about us is a question of predictability and consistency. That's what we are committed with Thomas and the management team. That's what we are committed to, predictability, consistency, no surprise, being sure that we deliver year after year.

I do believe that this is what we have delivered over the past 3 to 4 years extremely consistently. Look at the quality again of the earnings in '25. We gave a clear guidance on '26 for the next plan. Let's meet on September 21.

I was hoping for a bit more of that. So I mean, if we stick with the sort of bigger picture and from a balance sheet perspective as well, your solvency right now is very, very strong, and it's going to get even stronger with the benefit of the solvency review. I think pro forma, you're north of 230%. Admittedly, that's not necessarily deployable cash capital, but it's a very strong balance sheet. How can you -- what can you do with that balance sheet that you're not already doing to the benefit of investors, do you think?

So first, going back to our AI debate, a very strong balance sheet is critical in general in order to gain market share also in terms of brand perception and the quality of the solutions we can offer to our customers. It's true in the commercial business, but more and more, I believe it's becoming extremely important also on the retail side.

And by the way, if you take the view that many retail customers are going to ask more questions before getting an insurance product, having a strong balance sheet is going to be one of the elements that I believe LLMs will take into consideration when they ultimately make a recommendation. That was not the case on price comparison websites. So again, it's a competitive strength for us. That's the first way we look at it.

Second way, we want to be above 200%. We have been extremely clear on that. Everything we have above that is providing us with additional flexibility. You should look at it as a global picture. Ultimately, for example, that can give us flexibility on the leverage side, we'll see down the road. But it's, again, good news to have a strong balance sheet. We will maintain the discipline, and we have also been very clear on, I think, the quality of our distribution policy. You said it, but I want to reiterate that.

Ultimately, this also strong balance sheet is helping us grow organically in each and every of our local markets. And today, we have also sufficient resources to do that while having the good distribution policy we have.

And if I were to play devil's advocate. And one question mark I've sort of toyed with in my own mind is your returns to shareholders. So you've got a 75% payout ratio, the 60% plus 15% from the share buyback, which is consistent with what we're seeing elsewhere. But when I look at it from a free cash flow perspective and how much cash you're paying up to the holding company net of central costs and what have you, beyond what you're paying to shareholders, there isn't huge amounts left on an annual basis.

So you're not building up a stock of cash at the company, whereas if I were to do the same analysis for some of your competitors, they are generating more cash, which gives them a bit more flexibility potentially. So how are you thinking about that given that there isn't much room for maneuver from a remittance perspective? Is there more to do from a remittance standpoint? Or how should we think about that?

Well, first, I would say that we are happy with the current level of remittance from our local operations. We are very much in line with the targets we gave you in terms of free cash flows, and we are happy with the 80% on average we are having year after year. It's, again, helping us to keep the necessary resources at local level to fuel organic growth. And ultimately, that's what we need in terms of free cash flow in order to be able to meet the distribution policy we committed to.

So we are very happy with this situation. You're right. We are not creating a huge amount of cash at holding level. And I believe it's good news because it's helping us maintain the right discipline in terms of distribution policy, and it has been on purpose designed that way, precisely because we wanted to give you a clear message that our intent is not to have, I don't know what kind of available cash at holding level, where then you would start wondering, are they going to do "crazy things with that?" You have your answer.

Very clear. If I -- one area of the business that we've not touched on yet is the Life side of things. And I think it's fair to say that in the past, there have been some pressures on the traditional savings part of the business there. But more recently, new business momentum is definitely starting to gain some traction.

How should we think about that in terms of translating into CSM growth and ultimately, earnings growth for the Life business? Because on an underlying basis, again, your Life CSM looks -- growth looks slightly lower than your peers. So how should we expect to see the momentum accelerating from here?

So I would start by making a cautionary statement in front of you for all of us. I'm not entirely convinced that IFRS 17 drastically improved our ability to compare with each other. I tend to even believe the opposite, if I'm honest. So this being said, when I look at the Life business, in the end, it's, in my opinion, not that complicated.

You need to look at the level of reserves and you need to look at the level of margins. Year after year, are we able to at least maintain margins, if not improve them? And are we able to grow our reserves? That's exactly what we did in '25. That's what we will continue to do in '26. That's what we will continue to do going forward. Work on the margins, and you see that in our indicators, work on the level of reserves. The name of the game there is to make sure that net flows are growing.

We have now really built the right franchise to go back to net flows growth. It's true that over the past 5 years, we had our homework to do in order to reposition our Life & Savings business. But now we are in the right position in order to grow. Net flows have grown in '25. We will see that also in '26, how stronger commercial momentum in the geographies where we have strong distribution networks in order to distribute our Life & Savings solutions, mostly France, Switzerland, Belgium, Italy, Japan and Hong Kong, and also better persistency because our book is now positioned exactly where we want it to be with good level of margins. So that's the way I look at the Life business. If we keep working in this direction, you will see improvement in the CSM, you will see growth in earnings.

Just one element that I believe is important. Let's not forget that a lot of the elements that you see on the CSM are extremely dependent on the market you're operating in. So for example, NBCSM, you look at it on the face value. For AXA, it was 3% growth. If you normalize that for interest rate, we, in particular, have a significant business, for example, in Japan. If you normalize that for interest rate, it's 5% growth in '25. That's the organic potential, the real operational performance of the business. 5% NBCSM growth, I believe, is good. It's healthy. And again, it's in line with predictable, consistent earnings growth year after year also on this business. So I see the situation as being healthy.

We need to keep improving quality of the solutions and distribution network depths on that front, quality of the solutions. The good news for AXA is that we are now a pure insurance player. We no longer have the question, oh, for the quality of my asset management solution, do I need to take into account other constraints? Now we sold our asset manager.

We have a strong partner that is helping us improve the quality of the solution on asset places where we were not best-in-class. I think about equity, I think about ETF. But we have also more freedom to work with competitive third-party asset managers. In the end, what I want is the best solutions for our customers. So we have more freedom on the innovation side, and that will help us drive better proposition for our customers.

On top of that, on the distribution side, I believe that where we need to improve is third-party distribution. On Life, in particular, we have high-quality proprietary distribution, but we can do more on third-party IFAs, brokers across the board, and we are investing a lot on the quality of our platform for those distributors.

Excellent. Thank you very much. I'm very conscious of time. So maybe let's open it up to the audience, see if there's any questions, please raise your hand and wait for a mic. Question from Mark.

It's Mark from BDL. Just I noticed that at the beginning, you were talking about efficiency and you had referenced the head office costs, group central costs. Can you just maybe expand on what you're thinking there in terms of the potential?

Well, we will on September 21. But I do see as one of the levers we have indeed for the future, and it's a healthy question to ask ourselves. We can always generate more productivity also with our corporate center. So I see that as an opportunity.

Okay. With that, I think we can end it there. Guillaume, thank you very much.

Thank you all very much.

Very interesting conversation.

Thank you. Appreciate it. Thank you very much.

Hello, everyone. We are delighted to welcome you this morning for this conference press for the presentation of the annual results of the AXA Group. You probably saw that this morning, we published our press release. Thomas Buberl, CEO of the Group; Guillaume Borie, Strategy, Finance, Underwriting and Risk and Group's Technology; Alban de Mailly Nesle, CFO; Mathieu Godart, AXA France, CEO, will deep dive into these figures into this performance after the presentation. You can obviously ask your questions. And then the press conference will be followed by lunch with Thomas Buberl and all members of the management committee with whom you can dialogue.

I will now turn it over to the AXA Group's CEO, Thomas Buberl.

Good morning, everyone. Welcome to the press conference presenting the AXA Group's 2025 annual earnings. Before we begin this presentation, I would like to come back to the latest weather-related events that took place in our territory in recent days. Tens of thousands of homes have been impacted by the natural catastrophes and our thoughts, of course, are with all these victims.

From the very start of the severe weather, our AXA teams were fully mobilized, involved both on the ground and remotely and certainly to support our policyholders at every step in this difficult situation as regards claims, processing, administrative procedures, emergency relocation and obviously, advanced payments of compensation. It is, of course, our duty as an insurer to help, especially during a crisis and certainly a crisis that have been lasting for several weeks.

But we also know, unfortunately, that these types of events are becoming increasingly frequent. And following along those lines, we must collectively change our approach in terms of settlement of claims towards a prevention and systematic adjustment of our territories. I would dream that all stakeholders, especially public authorities rapidly be in partnership with private players to rapidly improve our country's adjustment and resilience that is necessary of our country to climate risks.

AXA from the very start was a major active player in regard to climate transition. And today, we are continuing on this path, confirming our trajectory and our commitment because this is the condition for effectiveness over the long term. This is a battle which is essential for us because it is structural, and we cannot relate it to temporary situations. Of course, after the presentations, we can exchange and interact about all your questions. We will now deep dive into the detail of the 2025 performance. I have with me Guillaume Borie, Alban de Mailly Nesle and Mathieu Godart, who will present their part when it comes to the annual 2025 business. Following these presentations, certainly, we will answer your questions from the audience and from journalists joining remotely.

Starting with the results as a whole. We can see that 2025 turned out to be a historic year for AXA. Why historic? Well, because we achieved record performances across all our business lines in all our markets. Our premium reached EUR 116 billion, which represents a 6% uplift versus 2024. This demonstrates, obviously, the strength of our sales momentum, the quality of our offerings and above all, the relevance of our strategy, which is, as a matter of fact, first and fore based on organic growth. Such growth is also profitable. You can see that the 6% at the top are repeated at the bottom. Now the underlying earnings in net terms is increasing to EUR 8.4 billion. If you exclude AXA IM, which we sold in the middle of 2025, such increase is even at 9%. And this reflects, by the way, the technical excellence year after year. Underlying earnings per share are increasing by 8%. And if you recall in our plan in which we find ourselves, the target range was between 6% and 8%. In other words, we are at the high end of the target range.

I would also like to highlight that the net income is up by 26% and is amounting to EUR 9.8 billion in 2025. Of course, we benefited from the capital gains through the sale of AXA IM. In a situation -- in a geopolitical economic situation, which is not steady, it is absolutely essential to have a very solid balance sheet. And if you see that our solvency ratio, which is the ultimate expression of our -- the balance sheet solidity has increased by 9% at 224%. Well, today, we are in a situation that is extremely comfortable where we can overcome all these uncertainties that surround us without being affected very much. Now the Board of Directors of AXA following these very good results is proposing to AXA shareholders a dividend of EUR 2.32 per share, representing an uplift of 8%.

The Board as well has approved a new share buyback program for a maximum amount of EUR 1.25 billion. We are convinced that in 2026, which represents the final year of our strategic plan, the current one, we will achieve our goals with an increase in the underlying earnings per share that will be at the high end of our target range, as I said, between 6% and 8%. These results are the fruit of a huge commitment from our employees, our agents, our partners. And I would like to thank them very warmly, our employees, I mean, our agents and our partners, but in particular, all our clients to whom we owe this excellent performance.

I will now would like to deep dive into these numbers. As I told you, all our business lines have contributed to our beautiful performance in 2025, whether it's in terms of premium rise or the underlying earnings. Such earnings reflect our very good strategic choices, but also the very good execution of our plan. All our indicators are green and all the engines are running high, the excellence of our teams, the satisfaction of our clients, the -- our expense control and our technological transformation. Guillaume, Alban as well as Mathieu will now deep dive into further numbers in a few minutes regarding these numbers again.

Now looking at our business model, today, it is very well balanced and diversified. This allows us to be relevant, but also competitive when it comes to demand for protection and innovative products through long-term development, risks related to the development of new technologies such as autonomous vehicles, cybersecurity, data centers, energy transition are spawning new needs. But at the same time for -- it is for personal lines and for retailers and corporations. Secondly, we see that demographic changes with the aging of the population around the globe is leading to reinforced demand for retirement savings products or health-related insurance products. Lastly, insurance needs for individuals or families with low income also are a major demand, which we have started to address.

AXA is very well positioned to meet such needs, thanks to the qualities, which are, as I said, the result of our group's transformation in the past decade. What is it exactly? It is the power and the diversity of our distribution networks when it comes to our agents and our direct franchises or again, the partnerships we have with intermediaries. Also, the strong technical and operational excellence, especially with AXA XL regarding new risks that companies are facing. But also it is due to the size, which allows very strong diversification and also moving better to scale in the field of technological innovation, for example. And lastly, and this for us is the major factor, it is a trusted brand. It is a significant improvement of customer satisfaction for several years now.

One of our major qualities is also our entrepreneurial DNA. Since the very beginning, which prompts us to innovate to service our clients and grab opportunities coming from new technologies. I would like to share with you 2 examples. The first one is the acquisition of Prima in Italy. Prima, tech insurer, which we acquired in 2025, well is strengthening our distribution capabilities in Italy, but more broadly in Europe. This acquisition provides us with the latest generation technological platform designed for direct distribution and via digital channels, which we can gradually roll out and mutualize for the benefit of the various entities of the group. Prima supplements, therefore, our historic network of agents, brokers and banking partners with a direct insurance offering, which allows us to broaden our customer base, in particular, when it comes to the younger generation and customers who have low income.

Second example now is our strategy when it comes to artificial intelligence. We are convinced that it will transform the insurance business for the benefit of our customers and will allow us to capture new opportunities. Our employees today are highly involved in the use related to AI in our business. A recent internal barometer, an internal one, shows that 70% of our people are optimistic when it comes to the future benefits coming from AI. As you can see on the slide, thanks to AI, we are moving forward the major levers of insurance for better risk pricing, better service quality and better customer experience, speeding up of technological developments for our coders to bring on board our people -- and this is the most important with AI. It's not a technological challenge. We are investing very strongly in our employees' training. It is our duty because we do know that our success depends on their -- them embracing our strategy and using these new tools and the trust in these new tools.

AXA's performance is being carrying out for the benefit of all these partners and the stakeholders. And from the very beginning, it was one of the fundamental priorities that we had. I have in mind, in particular, our clients to whom we have paid out last year nearly EUR 50 billion in compensation. I have in mind, of course, our employees to whom we have paid EUR 7.2 billion in wages and bonuses. They are the key to the success of the group. Also, we are a major investor, EUR 40 billion each year we invest into the economy. And last year, we paid nearly EUR 13 billion in taxes of all sorts and social charges, of which 36.7% in France. Likewise, we launched the AXA Fund for human progress. It is -- it comes with EUR 60 million per year. And this allows us to sustain projects that have an impact through the 4 major pillars for us, which is heritage, nature, science and inclusion. We have also confirmed our commitments towards climate transition by topping our investment goal. Lastly, we've also rewarded our shareholders who are essential for the financial stability of AXA, especially our first shareholder who are the AXA Mutual. Our shareholders are also our employees. Over 36% of them are shareholders.

Now looking forward now to the coming year, our priorities are straightforward: execute our current plan and at the same time, prepare the future success of AXA. This future is based on 4 pillars. First of all, turn AI into a major lever, not only in terms of efficiency, but also for better customer experience. Then, turn AXA into more efficient to show agility in an environment which is constantly on the move. Thirdly, we want to allocate even more our capital towards growth opportunities that create the highest level of value. And lastly, we want to shore up and strengthen our resilience even further, thanks to good diversification and to a solid balance sheet. Thank you very much.

And I will now turn it over to Guillaume Borie, who will now deep dive into the details of our lines of business. Thank you.

Hello, everyone. I'm delighted to be with you this morning and for the first time in my new role to review the very high-quality performance, as mentioned by Thomas Buberl, will business being fired by all its engines, as you can see on this page, business performing very strongly, underpinned by a very fine performance from all of our markets and from all of our geographies. We are especially satisfied with the performance posted by AXA XL. You may know that the market today in commercial lines for large risks is a market which has become more competitive. And in such a competitive environment, AXA XL has posted a very fine fiscal '25 with revenue up driven by growth in market share in the most profitable business activities and the most promising business lines across the world.

Remember that AXA XL has a presence world over to serve and support all of its clients. And its operating cycles are different from one region to the next and from one business line to the next. So the discipline for AXA XL is to tap into the most promising regions in the world. And this is demonstrated by underlying earnings strongly up and very strong business momentum can be seen across all of our areas with strong growth in premiums, both in France, in Europe and in our markets in Asia, Africa and the other emerging markets. I will also want to emphasize that we posted great profitability levels and underlying results in Europe, covering 8 countries with operations, which are performing extremely well. So in 2025, we have supported the organic growth track of the group while delivering results, which have increased across all our business lines and across all of our geographies.

Now digging deeper into each and every business line, starting with P&C. For the Property & Casualty business, as Thomas Buberl mentioned, we are posting an excellent year, very close to the perfect copy, if I may say, as we've been improving all of our P&C indicator. The loss ratio down, expense ratio down with operating efficiencies being achieved across all our operations, investment income up with release over prior year, better. So all in all, underlying earnings growing by 9% and which have been driven by improved business across the board as well as the intrinsic trends fueling our business operations. Now how have we generated this performance in fiscal 2025? Well, on the back of very strong execution discipline by all of the teams on the back of their ability to adapt their organic growth strategy to the reality of each region.

In Property & Casualty business, we have 3 business activities of the same size, the retail business, mainly in France and Europe, the mid-market and small and medium-sized companies, and our large risk and reinsurance business covered by AXA XL. These 3 business areas follow different trends, and we have to adapt our momentum depending on the reality of the market. For retail and mid-market and SME insurance business in 2025, we were able to keep improving our margins, which operate at the historic level while growing the market share across all of our geographies. This strategy to grow our market share was especially accelerated in the retail lines where our net contribution reached [ 1.7 million ] new contracts over the year, which is a historic high. Four, the large and specialty risks under AXA XL. As I mentioned, we are focusing on profitable growth in those business lines and in those geographies where we believe we can still gain ground while making sure that our margins are stable and AXA XL's margins remain stable in the insurance business in fiscal 2025 in more competitive market.

Now as you can see, this is the strength of our diversified model, especially with AXA XL, where, as Thomas Buberl mentioned, we've been benefiting from significant growth opportunities in new types of business, energy transition insurance, cyber insurance with our capacity to support large technology developments, including the setting up of new data centers and large infrastructure projects. Across all these business operations, there is a profitable growth path, which is reflected in the very fine performance we posted in fiscal '25. So very fine performance, as I said, very close to the perfect copy in P&C. Having said that, we do not want to be overly complacent, and we're convinced that we can go even further and higher in the next few years by focusing on a few key priorities. Among those, I will mentioned 2, which are of especially great importance for us.

In retail insurance and in commercial insurance, we want to improve the retention of our clients. This will involve increased investments in customer experience, in improving pricing strategies as well in order to retain our best customers while accelerating the number of contracts and products they get from us. The second key priority will be that we'll continue to massively invest into technology and artificial intelligence to keep improving our technical excellence. Now the first area where we can generate new gains and efficiencies on the back of technology and AI will be in improving the sophistication of our pricing mechanisms in better managing our claims. And this is true for all of our Property & Casualty business operations. This will enable us in the next few years to keep expanding and growing in this business area with very attractive margins among the best in the industry, the goal being to gain market share across all of our geographies.

Now moving on to life, health and savings insurance. The momentum here as well has been very positive. And in this business, you know that we have accelerated the renewal and revamping of our offerings in the last few years to reposition ourselves on a growth and market share gain path. We have 3 segments, which account for 1/3 of the business. We have protection, we have health and we have savings. In each of these segments, we are determined to gain more market share. Why -- how will we be doing this on the back of the efficiency, effectiveness and competitiveness of our offerings? Now effectiveness, efficiency and competitiveness of our offerings in health and protection will involve us innovating more in these offerings to better support and service our clients in their health needs. In several countries, we acquired health centers. We developed services to support and accompany patients. This was the case in Mexico. This was the case in Ireland, and we'll keep doing this because we're convinced that this will be a factor for differentiation to tap into profitable growth.

In the context of this strategy, we are capable of both offering better client experience, better standards of service, while better controlling the cost connected with claims management and the services we are offering our clients. Now in the field of protection, we keep accelerating the pace with very strong sales momentum, especially in Japan, in Switzerland in fiscal 2025. And this was driven by our ability to offer solutions, which combine with savings products and services. And talking about savings, in savings, our goal is very bold and high to go back on a concurring mood with an increase of net inflows across all geographies, including France, with net inflows posting very attractive margins because we've revamped our offerings, making them more cost effective, more competitive, more innovative, targeting all of our client segments. In such a context, the disposal of AXA IM was a new milestone and a new step towards this achievement.

Well, number one, this disposal makes it possible to enter into a strategic partnership with a more significant operator. We now benefit from economies of scale, making our offerings more competitive. And this party, BNP Paribas Asset Manager is now capable of offering even more comprehensive solutions, especially on ETFs and on the side of equities. Also, this change in our business model makes it possible to purely focus on our insurance business and in savings and pension products and services, our customers expect that we provide comprehensive solutions and services, which also cover insurance-related risk connected with the aging of population. So in more and more countries, this is what we've been doing by combining our savings and pension products with protection products, with health products and services. We've been starting to do that in several countries. And this combination of offerings is compounded by our ability to offer investment solutions across all types of asset managers in an open architecture, and here again, this will be a factor for growth and expansion in the future, which will make it possible for us to tap into the very numerous growth opportunities, which we may benefit from in those markets, health, protection, savings and pension products, which Thomas mentioned earlier.

So in a nutshell, in Life & Health business operations, we've been expanding, growing our revenues. All engines are firing strongly across all geographies and underlying earnings significantly, up 7%. So the combination of the growth of underlying earnings of the P&C and life and savings have made it possible to post underlying earnings of core insurance operations growing by 9%. So extremely strong growth to reach historic highs. So you can see that the engines are firing strongly, making us in a position where we generate extremely attractive margins, which makes it possible for us to look into the future with great confidence and to look into organic growth. The group, as it is positioned today, enables us to go for -- in each of our markets, in each of our business lines to go for organic growth by controlling what's is within our control, what we may and can control.

Added to this, we have a historic opportunity, which is to use and utilize artificial intelligence solutions to generate extra performance in a group which is already extremely efficient. This is what you have on the next page, very strong opportunity to pioneer the way in the insurance industry on how to utilize artificial intelligence solutions. Now truly, in the last few weeks, we've heard that for incumbent operators like the insurance companies, AI is seen as a challenge. But for us, with Thomas and the group, we see AI more as an opportunity, as a unique opportunity to rethink the way we interoperate with our customers. And we believe we have unique assets to successfully pull off this major change and transformation.

The first asset is the robustness and quality of our distribution channels, which will remain a key pillar for us and which now on the back of AI will have the opportunity to be more efficient, more productive and to focus more on what they do best, i.e. being on the front line with their customers. And we have a great example of that in France with the deployment of a chatbot, which is being used daily by all of our agents in France. It's called Smart in AXA. And our tied agents and their teams can better support and service their clients when they come to them for advice on an insurance-related product. The second competitive advantage we have to successfully pull off this change is our scaling up momentum. We have pockets deep enough to massively invest to use agentic AI to scale it up across the group and to generate concrete efficiencies.

Let me just share one number, 3.5 billion documents today. 3.5 billion documents reside on our service in AXA which offer as many data points we can use to better control our pricing, our claim management, the client experience so that we don't ask our clients 4x the same type of information, making us more efficient, more excellent and to win this technology battle, we have a very attractive brand. This is key, of course, because in this transformational change, our capacity to attract the best talent will be a critical success factor. In the last few months, we've recruited more than 900 data scientists as well as data engineers. And today, they are working across the world to improve our data models and to develop AI solutions, services and applications, which are gradually being used by all of our experts.

So to succeed in AI, the first thing you need is fundamental technical and technological knowledge and skills. Machines don't learn by themselves. We have thousands of experts who are specialists in their field who know all the ins and outs. And the rules we apply day in, day out are a key asset to move faster and to pioneer the way in this transformational change. So excellent outstanding performance for a record year for AXA, a positioning towards organic growth, thanks to record level margins and a capacity to tap into the revolution of AI. These are as many factors, which give us a great level of confidence and trust in the future.

I will now turn over to our CFO, Alban de Mailly Nesle.

Hello, everyone. I will share with you a few specifics regarding our figures, starting with the P&C business. As you understood, all our -- everything is green. It's starting with our P&C revenue that grew by 5%, 4% on commercial lines and 7% on personal lines, which reflects actually what Guillaume said previously about the fact that we gained [ 1.7 million ] of new contracts. We are very satisfied of this very dynamic commercial growth. When we look now at our margins, combined ratio hits a record level of 90.6%. It is partly due to the fact that 2025 turned out to be less heavy in terms of nat cats than on the long-term average.

It's not true in France where last year, we were hit by a number of events, especially in hailstorms. But on the whole, when you look at our geographies, the year was a bit better than the average. But that's a small part of the improvement of our margins. They improved really across all our businesses, thanks to efforts in terms of pricing, underwritings and how we manage claims and our own costs. So our margin improved by 1 point in personal lines and point on commercial lines, excluding XL and with XL. And as Guillaume said, where competition has been keener, they remained steady, which is a very good result. And in addition to these technical margins come along investment financial income, which are strongly higher. Well, they include more risk. We don't need to take more risks to have these additional investment revenues.

Our balance sheet is becoming bigger with the growth of our businesses. And so we have a number of obligations which are coming to maturity and had been underwritten several years back when rates were extremely low and which are replaced now by bonds with higher interest rates. So there's a mechanics here about improvement of our investments. So overall, when you add higher premiums, higher margins, cost ratio lower and investment revenue growth is at 9% of our P&C earnings.

Now moving to Life & Health business, very good momentum again. I'm not coming back to the fact that we had excellent inflows of EUR 5.4 billion, exceeding EUR 1 billion in 2024. So we can see the commercial momentum in which we are headed. But beyond this, our margins also improved as well in that sector. First of all, in terms of Protection & Health, our margins improved by 20 basis points. But this whilst we faced an event that was unexpected, that is in Mexico, the Mexican government decided that VAT on claims would no longer be recoverable, which cost us EUR 0.1 billion and 70 basis points of margin it cost us.

So in health, otherwise, in life, otherwise, would have increased by 90 basis points. So in 2026, we will try to correct that Mexican issue. But in savings as well, we have better margins simply because we had higher volumes, especially thanks to inflows, but also because there's a revaluation of our assets, especially related to shares related unit-linked accounts. And so there are margins that also are higher. Therefore, we have a 6% growth in savings, whilst there are 15% -- where growth is 15% in Health & Protection. So there again, a very good result on the whole in Health & Life, growing by 7% our earnings.

Now looking at the whole -- across the group, next slide. So 9% in P&C, 7% in Life & Health. And by the way, we sold mid of the year AXA IM, so we lost about half of the earnings compared to 2024 and our holding costs remained stable. So growth of our underlying overall at 6%. And as Guillaume said, if we take aside AXA IM, we would have had a growth of 9% of our underlying earnings. Add to this elements that we put into our net income, especially capital gain that we made on the sale of AXA IM. And then the net total income is EUR 9.8 billion, which is up by 26%. And if I go back now to our underlying earnings and if I look at the underlying earnings per share, it is up by 8%, which is quite at the top end of our range, which is the target one. So an excellent result.

Lastly, a few final words about the solvency factor. We looked at our commercial momentum, our ability to improve our margin. But what is important is our financial solidity because it is important for our long-term efficiency and the trust coming from our clients. So the solvency ratio increased by 8 points over the year, moving from 2016 to 2024, 224% above all generation organic capital to which we are accustomed. You also know that when Solvency II came into force about 10 years ago, there was the grandfathering clause that is the subordinated debt we had at the time were deemed still valid for 10 years. So until the 1st of January 2026, date at which they are no longer part into the calculation of solvency. That's why in the 1st of January 2026, what remains of subordinated debt from that time pass falls away and comes and cost [ us 10 ] solvency level. So we're still at 215%, which is a lovely a very robust balance sheet.

You also know that Europe has looked into Solvency II to see once again 10 years after its implementation, if there were things to be -- that needed to be corrected, they found generally that probably there was too much prudence in calibrating Solvency II. So when we compute our solvency ratio with what will come into force next year in 2027, that is we will be regaining 17 points of solvency on the first of the quarter of 2027. So on an equal basis -- on a like-for-like basis, we will be at 232% solvency on a pro forma basis. So very solid. So I would like -- I wanted to end this with this. So very good commercial momentum and also beautiful robustness of our balance sheet.

I will now turn it over to Mathieu, who will speak about France.

Hello, everyone. Well, I'm delighted to see you again this morning to share an excellent fiscal 2025 for AXA in France, a year which is the second year of our Unlock the Future plan. We heard a lot the word engines in this presentation that AXA France is one of the essential engines of the group. So -- and I'm delighted to share with you what makes us unique in our market at AXA France.

Now in 2025, we've consolidated our leadership position, i.e., a robust leader, diversified leader, a leader which is capable of meeting all the needs of French citizens and French businesses, be it in Health & Protection areas, be it in property casualty and in the savings and retirement areas, very well-balanced profile, as you can see on this slide, very well balanced across the various business lines. So in that year, 2025, which was a dense, uncertain year with some degree of concerns for our clients. We've kept servicing, supporting our clients very strongly so, be it in the savings and retirement field to help them prepare for their retirement with additional income, and we saw the appetence of French people with higher saving levels this year also to operate as their health related partners with our protection and prevention offers and also showing our ability to help them through a number of natural catastrophes. And we would like to take this opportunity to extend my support and warm thoughts to the victims of the Nils storm in France as well as thank all our teams and tied agents who have been working with the victims right from the beginning.

Now this leadership position is anchored into a relationship of trust across France, which was established in the last 40 years. And today, more than 8 million clients are trusting us more than 1 household out of 5 with business leaders and trusting us with the need to protect their properties with the Property & Casualty coverage and as well with the employee benefits. So every day, there are some 33,000 of us to support the agents, brokers, supporting our clients, working with them throughout their life projects and also being present with them in tough times. Also, I wanted to conclude this slide by emphasizing one point, i.e., our tangible role in contributing to the French economy. We've been investing EUR 10 billion in the real-world French economy, especially to support infrastructure project, real estate projects and supporting business and corporate project also by engaging at a very local level with trade professionals and also by paying out more than EUR 40 million per day to meet customer claims. So very close to our customers, very present in our region.

So fiscal '25 was an excellent year, as I said, in my introductory remarks with excellent performance being posted. So revenues up by 6% to EUR 31 billion. P&C business expanding, up 7% year-on-year and Health & Protection business up 4% year-on-year with Savings & Pensions business growing 7%. Now revenues are at their highest level for the last 10 years. Now underlying earnings reached EUR 2.2 billion at its highest level. And this performance is driven by all of our business lines. So we owe this growth to our network of tied agents which is present everywhere in our regions. And we've been investing massively into this distribution channel with more than 400 new distributors, strengthening our current teams.

We've invested into the training and development of these distributors and agents by giving them new skills, new training with new modern tools, as Guillaume said earlier, so that they can better serve and service our clients every day, including thanks to AI solutions. All this has been operating well and has been posting extremely positive growth momentum. More than 500,000 new contracts have been signed in the course of 2025, more than 250,000 new clients have been signing with us and AUMs grew by EUR 3 billion in individual savings. So very strong performance to shore up our leadership position.

Now above and beyond, this fine performance, I want to review our commitments, which is a very important area. Number one, on the customer front, and then we'll be talking about climate and prevention. Now on the customer front, fiscal '25 was an opportunity for us to meet a number of these tangible challenges our societies are confronted with. Let me start with marital domestic violence, and more than 5 million policyholders today can benefit from legal protection and assistance as well as emergency rehousing so that they place themselves in safety. This initiative is significant and stands us out. We are extremely proud of this initiative that we have conducted jointly with a number of community organizations, and I want to pay tribute to their work and heal them. We also keep meeting the challenges of inclusion, the goal being that each and everyone may have access to insurance services.

Today, 1.8 million clients, low-income clients have insurance coverage via AXA France and via our direct business. And we keep adapting our products and services so that we can serve these customers even better. I also want to emphasize on our preventative efforts. As Thomas said in his introductory remarks, especially on the climate front, we've been supporting more than 300 city councils, which have been required by law to draw up so-called municipal safeguard plans with respect to climate requirements because the city and town counselors sometimes are at a loss to meet these technical requirements, and we are happy to help them doing so in the field of prevention.

Also, I want to speak about prevention in the field of health with an initiative that we have just launched, which consists in partially reimbursing the so-called genomic test. Now what are the about genomic tests? Well, genomic tests make it possible for women with breast cancer to test the relevance of chemotherapy to make sure what would be the most appropriate chemotherapy for them and possibly sometimes to avoid chemotherapy, which may be traumatic. So we come in support to support this new scientific progress through this initiative. Now these commitments have made our teams proud, and we made our agents and distributors very proud, all those who are operating under the AXA France brand that it is our DNA to be capable of actively contributing to society is playing a key role in. Thank you very much.

And I will turn over to Thomas for his concluding remarks.

Thank you, Mathieu. You will have understood by now AXA achieved a record performance in 2025. We achieved historic results in all our business lines in every region, and this demonstrates a good commercial momentum and more broadly, the relevance of our strategic plan called Unlock the Future. We succeeded in growing our underlying earnings per share by 8% at the top end of our target range, whilst reinforcing our prudence margins in order to prepare the future.

In 2026, we will carry on implementing our strategic plan called Unlock the Future. And on the basis of this performance, we are very confident about our ability to reach the highest level of our goal to grow our underlying earnings per share in 2026. We will also lay the foundation of the next plan which we will be presenting on the 21st of September. Our ambition is to continue to be a champion in our industry, i.e., the preferred insurer of our clients, a company able to attract the best talents whilst creating value for our shareholders and our employees and of course, for our clients. Thank you.

And we'll now move on to your questions.

Let's start in the room.

[indiscernible], newspaper. My question bears upon the development of AI, which could increase competition. Could you explain to us several things? First of all, describe a deep dive that is into the different distribution networks that you have available and then the costs associated, are there any possibilities to cut down distribution costs, including in networks outside of the direct distribution, maybe the employee networks or the tied agents network. And perhaps maybe could you specify one figure? You gave a combined ratio of 90.6% in P&C. Could you give us -- could you break it down the cost ratio, et cetera, and the cost in terms of claims? And regarding the latter, could you specify the changes when it comes to the nat cats in terms of the rates there?

Very well. You have a third question? That's one single question. It's chiefly on costs. So on the first question, I will quickly make an introduction and the best thing will, after that, to go into concrete examples. And certainly, Patrick Cohen is in this room, who is heading Europe and Mathieu Godart, who is heading AXA France. And after some introductory remarks by me, I would like them to show you what AI is really about on a daily basis and in particular, when it comes to our distribution networks. And then Alban, could you give us the specifics about the combined ratio in terms of costs and claims and the nat cats?

So in general, for us, as I said, there's an opportunity that is significant. we really want to use that opportunity. And essentially, there are 2 fields of implementation, one part, which is in relation to our clients. In other words, how can we really improve the relationship and the interface with our clients. And here, the distribution centers are key. And our idea here is to work, of course, on the automation front, on the customization of client interface in regard to service, but also help our general agents, our distribution networks to use properly AI in order to improve customer relationship. We have a second field of application, a second scope, which is about how we assess the insured risk and how we can prevent it.

An insurer has available lots of data. And as Guillaume mentioned it as well as Guillaume, we are working at length about the quality of data because if you load up a car with not the right gas, it doesn't work well. So that's why having good data banks and also have the ability with AI to use nonstructured data. For example, if you insure this room here, the risk engineer comes around and tries to understand the danger of potential fire, he will make a PDF report that we can use once. But if you want to use it several times for other risks, you have to be able to make use of such piece of information. AI for the first time is helping us do that. In other words, assessing a risk on the one hand and then the question of prevention in other words, what can we do to avert the next claim will be much more specific and precise. And these are the 2 areas on which we are working as it comes to the implementation of AI. Patrick, first, maybe and then Mathieu, can you give us even more concrete examples of your 2 geographic perimeters to illustrate this.

Thank you very much for your question, sir. I will focus on where we see the highest potential to generate growth and best serve and support our clients. And we are very excited by application per use, which is being mainstreamed across all of our entities in Europe. Now to be very concrete, with respect to growth, and expansion today, AI makes it possible for us to have an underwriter prepare for their work so that they can refine their offers and provide more offers, more proposals in a shorter lead time, getting information from the claims from the various brokers, from the agents, processing more funds to generate more growth.

Another interesting example is that the AI solution will give us the right offer with the right price at the right time to the right clients. We are using agentic AI, which in a predictive manner are able to identify, detect needs and basically automatically create e-mail and correspondence and communication, which are totally customized to fit the individual situations of the clients. Very interesting. The last example is how we'll be training and developing our agents, providing them with advisory tools in their client interactions, and we'll be ramping up their skill sets and expertise on our products. We'll be very quickly generating videos, tutorials and training sessions for use by our agents, so much for growth.

The second very promising area is obviously that of client servicing. Now AI is now capable of solving a great number of pain points which you have in the field of insurance. Obviously, one of them is not to repetitively have to describe your events when you have incurred a claim and you report it to also radically shorten the lead time for reporting in a seamless process where you do not have to repetitively send a piece of document. This is being done in Germany, Italy and Switzerland at scale with a very tangible example. Let me share it.

Today, in our claims management centers, the claims handlers now have what we call an assistant, which basically put them into cruising mode, i.e., when they interact with clients, the AI tool will suggest an answer, will get the right data at the right time so that the claims managers focus on empathy on better serve the client and speak with them, listen to them, satisfying the clients better and making them more effective, more productive.

Thank you, Pratick. Mathieu?

Thank you. Well, first, the examples that Patrick has just reviewed are examples of daily use. I will focus on one area which is important. It is that of technology. Well, we've obviously been using AI to refine and customize our pricing schemes. Patrick mentioned the development work we did to clean and refine our client data. We now are able to update our pricing mechanisms, making them more dynamic, enabling us to generate more profitable growth. Combating fraud is of great importance as well because AI is not only -- sorry, being used by corporates, but private hackers and fraudsters use it. So AI makes it possible to detect those tricks and those fraudulent schemes.

The last area where AI is of great importance is with respect to prevention, especially in car fleets where we can sparse and review claims data to identify potential preventative measures, which we submit to businesses so that they can lower their claims ratio and lower their prices connected with their car fleet coverage. So much for these very tangible examples. The combined ratio is down 0.4%, i.e., 0.4% broken down into 0.3% of improved current loss ratio, 0.3% of improved the cost ratio and 0.4% of improved nat cat factor. And since we consider that all this was an upside, we decided to be cautious, more cautious than usual on our reserving, and we released less prior year developments in an amount of 0.7%. So 0.3%, 0.3%, 0.7%, minus 0.07%. So thank you.

We have someone right. Let's go from right.

Thierry [indiscernible] for the News Insurance Magazine. I have 2 questions. The first to pick up on what my friend here asked about AI. You mentioned "massive investment". So can you give us the order of magnitude for the AXA Group? And can you tell us what would be your AI budget in the next strategic plan? The second question links up with Africa. I would like to know if you're going to be revising your position in the African continent given the new geopolitical dynamics in those countries and also your interest in Africa. Can you speak about these items, please?

Thank you, Thierry. So I suggest that Guillaume answers the first question, and I will be answering about Africa.

As to your first question, what you need to have in mind is that some 4% of our technology is for capital investments. The rest is for the running cost of our IT systems. Now we are making efforts to increase this budget every year. We are determined to increase our investment budget because the investment needs into AI will obviously be increasing. We are not giving any more accurate detailed number, but in the next strategic plan on the 21st of September when we disclose it, we'll give you more detail on that. What's important to note is that this growing investment is a real opportunity to start laying down the foundations and future vectors of growth going forward.

So we are accelerating this which increases our total expenditures. And we can do this now because our technical margins are of excellent quality and also because we have other pools and reservoirs to improve our day-to-day expenditures. And among these levers and pools, I included all the operating excellence drivers and measures with respect to offshoring, some assignments, greater disciplines in the purchasing and procurement so that we've generated efficiencies, and Alban mentioned how it impact the P&C combined ratio. And these efficiencies are higher than the additional capital expenditures we'll be investing. So with such investments, we know that we are paving the way for the future growth and that there is a real synergy, which will make it possible for them to achieve the efficiencies across the value chain.

Now on Africa today, we are in a few countries. where we have been focusing in the last 10 years in those countries, our positioning is significant. Let me mention those countries. First and foremost, it's Morocco and then the CEMAC countries, in other words, Senegal, Cameroon, Ivory Coast and Gabon. In addition to that, we are in Egypt and in Nigeria. So our positioning is highly focused, which is growing significantly with a lot of success in the offering. And certainly, a stake in Africa rate or participation in it helps us go beyond through stakes in the reinsurance business in the countries where we are not. Africa, it's true, is still part of geopolitical tensions that could lead us to rethink about this.

Look, I think the other way around. In other words, the greatest opportunity that missed that Europe hasn't seen yet is that its future perhaps is more in the South than in the -- on the East or in around the West. If you think about this in terms of migration flows and also the demographic issue in Europe, if you think about the issue of the energy aspect in Europe and food, safety and security, you will find yourself very quickly looking at Africa. And this is why I believe that Africa will be a significant -- very significant continent for Europe. This is why we are preparing this wave of growth, which hopefully will come one day for Europe.

[indiscernible] Bloomberg. I have several questions. On AI first, you mentioned every kind of opportunity and the positive effects to come. I have a question, though, about the fears you might have on this about the potential coming of new entrants in the market. To what extent do you think that the regulation, which is quite strong in the insurance business? Can it help you with regard to these questions. Now what about the language models? If we look at the OpenAI chat or others, tomorrow, do you think that these models, these agents can offer insurance contracts? Could it be distribution channels? And to what extent then will AXA make sure that you're really present and well listed?

And my second question is about the floods in France in the last few days, an estimate that was given last week by the Ministry of Economy, which assessed it at EUR 1 billion, it could even go up to EUR 3 billion allegedly. Do you have any estimates about the share of AXA with regard to these floods in France?

And now my last question is about the sales several years ago. That was the life insurance business and the pensions in runoff and you started discussions with Athora at the time, which didn't materialize in 2024. You had mentioned at the time, macroeconomic conditions that were not adverse at that time. Now that they have changed, are you still open to this portfolio?

Thank you for your 3 questions. Just to specific your third question, you do speak about the Alban, the German or the Alban portfolio. First of all, I will yield to Mathieu, who will answer about floods in France and the potential estimates they are in. And then I will take the first and third question. Mathieu?

As regards news, it's 2 types of events we are facing. On the one hand, there is a storm, the damage created by the storm. And on the other hand, you have floods. It's important to differentiate these 2 because in this kind of situation, traditionally, we are in a position to quickly assess the damage related to the storm. But when it comes to flood-related damages, the time to estimate the damage when people make statements, it's much longer for very pragmatic reasons because you have to wait for -- you have no longer any floods so that we can send experts to be able to assess the damage that face -- that clients are facing. So at this stage, in terms of damage regarding the storm, we have an estimate around EUR 80 million net, about 20,000 claims.

With regard now to floods, we have a few thousands of claims that have been made, which probably will supplement that amount, but in proportions, less -- far less sizable because most of the damage are more with the storm than with the floods, even though in terms of people feeling really distressed, it's more people who are -- it's more the victims of floods that we are trying to support more because a tide that fell from the roof doesn't -- is not so bad as having water in your kitchen, in your home.

And to supplement this relative to the figures that were announced by the market, what do you think about? Does it make sense? The first EUR 1 billion that was announced is consistent. I didn't know about the EUR 3 billion. I think we are in ranges that vary very much at this stage. And it's always very difficult because there are 2 types of claims on or damages. On the one hand, you have a physical damage of a home, a house of a factory, which is fairly easy to assess. On the other hand, you have the business loss if a company cannot work. And this is where it's difficult to judge. This is why it's important with the figures that come in too early.

Now the 2 other questions. Let me start with the one about the life insurance divestiture. In the last plan, remember, we had a goal, which was to cut down a few life portfolios and the reserves that come along with this. That portfolio, well, the life insurers in Germany, and it's only part of it because that's a former vintagous portfolio that AXA had bought in 2006 at the time. It was really the last portfolio that we had to sell or not at the time, we were not really so interested in selling, but Athora approached us. We always look if someone talks to us, we always look if a deal can make sense or not. And in that case, together with the regulator, we decided such deal would not be realized. And that portfolio, when you look at it, it's very well capitalized with Solvency II, which is stand-alone, which is very high.

And today, there's no reason really to think again about a sale. This is why you noticed the earnings we have today are earnings that are not based on exceptional items because we have a sale here or restructuring of our portfolio there. It's really about growth and organic performance and growth without any special effects or exceptions. And now we really want to focus on our organic development without finding ourselves out of focus and focusing on topics that are not contributing to the core of the business. So we're focusing on the organic aspects. I'm not asking myself this question. This is why -- because I haven't been approached.

Now on AI. First question, the fear about new entrants. Of course, AI will create newcomers. As you saw, this taking place in the digital revolution that we saw several years back. We saw newcomers come along. We -- some of them survived, but most of them either did not survive or chose an interesting fate, which is instead of competing with insurance, they create a partnership with insurers so that they can work with them together. And I think the same thing in most cases, should occur again. As we said before, the insurance model is a scale-based model, but we need to modernize it. We need to simplify it, automate it and customize it, the customer interface and innovative companies based on AI and on the LLM models will be helpful. And this is why in order to do better this time compared to the digital revolution, we must, from the very outside, try to find partnerships to benefit together from the positive effect of AI on our processes, on the customer interaction. And along those lines, then, of course, we are working with all the model providers, in particular, with Mistral.

[indiscernible] magazine. My first question is on the funding of the economy. And the second question is on health. With respect to funding, the defense industries, can you tell us a bit more about whether you contribute to the BPI Defense Fund? Have you been ramping up to invest into these funds jointly to the BPCE Group? And with respect to the health business, Mr. Godart, you spoke about the partial reimbursement of genomic test to avoid a traumatic chemotherapy. To the best of my knowledge, you are among the rare insurance companies to offer this and the former French Minister for Health, Yannick Leder had said that if these tests were being covered by insurance companies, then the budget of the social security system could be cut? And can you expand on the relationship between insurance companies like yours and the mutual companies and the national health system?

Now Alban, about the defense industry question.

We always have considered that the defense related issues were not necessarily strictly speaking, in the scope of sustainability. We've always invested into the defense mechanisms in full compliance with the international regulations. And so we keep doing so. Now generally speaking, when you look at the funds we are investing into, we'd rather have diversified funds we invest into and not especially exposed to any specific given industry. Obviously, we are looking into this initiative with some degree of interest, but we want to be sure that it will not overexpose us to any given industry. And maybe say a few words about the defense industry as well, in this field, we have to be always very careful.

Investing into an industry is a necessary factor, but it is not enough to totally shore up the defense and military capacity of the country. So all stakeholders need to be fully aligned in the defense ecosystems, and this is not necessarily the case today. So more work has to be done in this respect.

Mathieu Godart, with respect to your question on health, thank you for referring back to this initiative. I believe we are the only insurance companies to partially reimburse this genomic test. And this is why I wanted to highlight it in my presentation. Well, in fact, we are convinced at AXA that with respect to health issues, and you can see this in the current debate about the well-balanced control of health-related cost is of great importance. And we need to move from a therapy-focused model to a prevention-focused model. And we have a fund for scientific research to promote more preventative and prevention-related activities.

Now in this field, I believe that development work should be done jointly with insurance companies, with the national health and security systems and with the public authorities so that long-term solutions can be found so that we may collectively contain this inflation in health and medical costs we are currently confronted with. So basically, with this initiative, AXA is showing its desire to move from a therapy focus to a prevention focus, and there is much more to be done in France.

I also want to pick up on an important point in your question, madam, because we sometimes hear that the national security system competes with the private insurance companies and the mutual companies. Now the question is not who does what, but the question really should be how could we collectively better do things together because all the efforts made by the private companies, combined with all the efforts made by the national systems should compound to improve the situation.

Now time is running. Let's take a last question online. And then for all other questions by people in this auditorium, we may again exchange around the drink or coffee. Last question.

[indiscernible] from Maximilian [indiscernible] of Plateau. First question is, could you please say a few words about the result in Germany? Second question, the major European primary insurers have been growing for years. Are we heading towards an oligopoly market? And is that what AXA wants? Third question, the major reinsurers are increasingly talking about more targeted risk underwriting, especially in property and casualty reinsurance. Does this affect your business as AXA and/or the primary insurance market in general?

Thank you very much for the 3 questions. So Patrick, if you could talk about the result in Germany. And Nancy, if you could talk about the reinsurers and the risk appetite. And I think the second question is relatively easy to answer. When you look at the insurance market, in particular in Europe, it is today very fragmented still. So talking about an oligopoly is very far away from the reality. Patrick will talk about the German market in a minute. I have left the German market 10 years ago. But when I left, we still had over 200 insurers in Germany. It's working.

Thank you Thomas. I think we're still kind of this configuration as it stands. I thank you for your question because it gives me the opportunity to warmly congratulate the team in Germany for an outstanding year. I'll start by saying that the German team passed the EUR 1 billion underlying earnings result this year. This is quite an achievement. It's a major improvement, big, big growth. And very importantly is the quality of the results. We've seen good growth across all line of business. I'm very pleased to see that from a net new contracts perspective, we're gaining customers in Germany.

I want to highlight 2 areas where I think from a new business standpoint, Germany stood out through product innovation, which are life and savings and health, we just talked about supplementary health with the previous question. I think Germany really made a difference there in proposing very, very compelling proposition for customers. And I would conclude in saying that Germany has an excellent quality of the technical result, which is driven by the use at scale of artificial intelligence and also in everything I quoted before in terms of serving better customers, making cycle times shorter. Germany is the frontrunner in AXA. So a big, big year for them and an excellent result.

And it also shows you our philosophy on talent. We always try to find successors who are better than their predecessors. I only made it until EUR 520 million result. Nancy?

Thank you. So regarding the question around reinsurance. So the reinsurance market still is quite profitable. You will see the announcements from the major reinsurers. However, over the past 2 years, they've been targeting their focus on the types of risk they'll bring in, increasing their attachment points and the relationships with their carriers and also leaving space for alternative capital to come in. From that perspective, while they're still very active in reinsuring their partners, they're very selective on where they'll take risk. And this allows us in a company like AXA, who is very strong in their underwriting to retain more risk.

Thank you, Nancy. Thank you to all of you for participating, listening and asking questions. Thanks to the team for being here for the great result and for answering the questions. And so [indiscernible].

Now is the time to go upstairs to have some more time for informal discussions. And I can see that in this auditorium, you have people with more questions. You'll have the opportunity to ask each and every question. Thank you very much.

Ladies and gentlemen, good day, and thank you for standing by. Welcome to the AXA Full Year 2025 Earnings Presentation. [Operator Instructions] Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Anu Venkataraman. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to AXA's Full Year '25 Results Presentation. Presenting the results today are our Group CEO, Thomas Buberl; Global Head of Finance, Strategy, Underwriting, Risk and Technology, Guillaume Borie; and our Group CFO, Alban de Mailly Nesle. In addition, we also have in the room, Patrick Cohen, CEO of AXA European Markets & Health; [indiscernible], CEO of AXA France; and Scott Gunter, CEO of AXA XL. With that, I turn it over to Thomas.

Thank you, Anu. Good morning to all of you, and thank you for joining us for our full year 2025 results presentation. As you have seen from the numbers, we had a record performance with the group that is now positioned exactly where we want it to be, a pure insurance player with every business and every geography contributing positively to both the top and the bottom line. I'm extremely pleased with these strong results across the board. You see that the top line has grown by 6%, which is reflecting the strength of our franchise.

You also have seen that the underlying earnings per share have grown by 8%, which is the top of our target range. This all happened while we were enhancing our reserve prudence and we're absorbing significant for example, the adverse foreign exchange development we had last year and also the temporary dilution from the sale of AXA. All of this happens on a very strong balance sheet with EUR 5.6 billion cash at the holding company and a Solvency II ratio that remains high post grandfathering of the debt at 215%. We expect a further 17% uplift from the Solvency II revision that will kick in on the 1st of January 2027. This is a very solid position and in the current environment, also a needed position to absorb shocks. The return on equity is at 16%, which enables us to fund organic growth and to sustain an attractive payout to our shareholders. We have also now completed the EUR 3.8 billion share buyback that was related to the sale of AXA IM.

So in total, we are very well positioned, strongly capitalized, and we are delivering consistent high-quality growth in the top and the bottom line. When we look at this year and based on this record performance, I am very confident that we can deliver underlying earnings per share for this year at the top end of our target range. If we move to the next slide, our performance this year reflects a very disciplined execution on all fronts, which are growth, margin and efficiency, while at the same time, we are continuing to invest in our business. The top line growth, as I mentioned earlier, was 6% and is well balanced across all lines of business. At the same time, we also increased our margins, which reflects a disciplined growth, a deployment of machine learning and predictive AI, in particular, in pricing and underwriting and also a reduced leakage in claims settlement through better analytics and tighter processes. We have also made good progress in delivering efficiency through technology and automation.

The underlying earnings, if you exclude AXA IM, which we sold and closed by the middle of last year, grew by plus 9% on a constant currency basis. More importantly, these earnings are of very high quality. We do not have to fix any business anymore or have benefited from any turnarounds or onetime effects. In fact, we have taken advantage of strong earnings to reinforce prudence across all lines of business. What I would particularly like to highlight is the P&C performance. This is a stellar performance, 9% earnings growth, resilient pricing, including XL, a lower current year loss ratio, excluding nat cat, a reduced expense ratio, strong investment income and as I mentioned earlier, further reserve prudence. The Life & Health results are also of high quality. They have grown by 7% in earnings. We see a strong commercial momentum.

We see higher net flows across all geographies. And what was important for us in 2025 was to particularly work on the short-term technical results. And you've seen that there is a 15% increase, while we also have a strong CSM release that is driven by reserve growth and improved margin on our in-force portfolio. This has also allowed us to build additional prudence on both technical experience and fund distribution. So we are delivering strong earnings growth in line with our commitments while further strengthening the resilience of our earnings across all lines of business. This performance reflects the quality of a well-diversified, strong insurance franchise and the deliberate strategic actions that we have taken over the last decade to reposition AXA and strengthen the execution. So we are very confident that we can sustain this performance.

And as I said, my view for this year is that we can clearly deliver an underlying earnings per share at the top end of our range. If we go to the next slide and take a step back and look at the industry, it is in very good shape with profitability and capital being at strong levels. The insurance industry is certainly also benefiting from structural growth drivers that support sustainable long-term expansion across all lines of business. When you look, for example, in retail, we are growing protection -- we see growing protection gaps from under insurance, especially amongst the modest income customers. And this is obviously fueling demand for more affordable and accessible coverage.

When you look at emerging risks such as autonomous vehicles, cyber, data centers, energy transition, these are creating new and attractive growth avenues in the commercial and specialty lines. When you think about life and health, we are confronted today with aging demographics. We have pressure on public systems, and we have demand for private health, protection and retirement solutions, in particular, in the countries where public systems have not delivered. And if you think about the U.K., this is probably a very illustrative case. AXA today is well positioned to benefit from all of these opportunities because we have a broad and strong distribution footprint to capture these opportunities.

For example, we are expanding in direct distribution, and we are forging partnerships to reach modest income customers. And in particular, in Europe, this has been a very successful journey over the last year. We have deep technical expertise to underwrite risks profitably. AXA XL has been ensuring autonomous driving technology for some time now, and we are amongst very few insurers that have the engineering and risk management expertise to underwrite, for example, larger data centers and digital infrastructure.

Our scale, and it was always very important for us to be in fewer countries, but have scale enables us to deliver competitive products to our customers. And we obviously -- given that scale continues to increase, we intend to continue to drive down our unit costs as we go along. Importantly, we have a very trusted brand, and we are and will remain a long-term partner to our customers. So if you look forward, there is plenty of opportunities ahead, and we are well placed to capture them.

And my team and I are very excited about the future growth opportunities. If we go to the next slide, Page 6, and looking at this year, our priorities are obviously twofold because on the one hand side, we have to deliver the current plan. And as I said, I'm very confident that we will be delivering at the top end of our range so that we have a good delivery for this current 3-year plan. But on the other hand, we also lay the foundations for the future success. As a CEO, I have to identify and execute a few decisive moves to secure our long-term competitiveness. Today, my biggest strategic priority is to continue to transform our business.

When we talk about transformation, we don't talk about moonshots. Our goal is really together to create a consistent and sustainable value for our shareholders. And obviously, in this equation, our customers do remain at the center of everything. This transformation, I would like to design with my team along 4 dimensions. First, we see AI as an absolute enabling technology that can create tremendous benefits for companies that can leverage it well. For us, AI is an efficiency play, but not only because AI will change how customers access insurance. It will change the personalization in products, and it will also change the customer experience.

And so we want to be strongly positioned for the shift. Secondly, AI is already improving pricing accuracy, underwriting quality and claims management because -- we have a lot of data, often also a lot of unstructured data and AI will help us to leverage them not only for the underwriting decisions to make today, but also using all the historic data we've got. And AI is also absolutely key to continue to develop our own tech cycles when you think about further developing our tech landscape, when you think about making sure that our data foundations are stronger. And so we work with very tangible cases that are now ready to scale.

Secondly, AI also enables us to increase the efficiency and agility of our business so we can adapt to this constantly changing environment. As you know from the past, AXA is a company that is not afraid of change. We have a history of making bold moves, and we will continue now making these bold moves in a more -- in an environment that is more driven by organic development. Third, we intend to enhance our capital allocation discipline even more to focus on the highest return growth and the best investment opportunities.

Finally, and that is very important in a period like this, we aim to build resilience to drive greater predictability and reliability in our performance. You've seen that over the years, we have strengthened our diversification enormously, not only just across geographies or lines of business, but also across our customer segments and distribution. And we will continue this journey to ensure that we always have a robust balance sheet and a robust risk management framework. Our ambition is to be a winner in our industry, the preferred insurer for our customers, a place that can not only attract the best talents, but can also compound great value for our shareholders. Thank you. And I'm now handing over to Guillaume Borie.

Thank you very much, Thomas, and good morning to all of you. It's a pleasure being with you this morning for my first time presenting the group results in my new position and doing it on a day where we announced excellent results. As Thomas mentioned, the group is very well positioned today. And therefore, our priority should be to safeguard this performance and where possible, take it to the next level. We will do that starting from a solid platform. As you can see on this page, arguably, our businesses are firing up on all cylinders.

All our businesses, all our geographies have delivered excellent performance in '25, both on top line and bottom line. Specifically, we are particularly happy with AXA XL results. Earnings are up 9% with stable, excellent margins and selective profitable growth. XL is a highly diversified franchise, both across geographies and by line of business, each with its own dynamics. So what those results are demonstrating is our ability to capture profitable growth opportunities while managing the cycle and therefore, growing our earnings.

On this page, you also see that France is an excellent performer. Clearly, it's a core engine for the group. And those results are showing our resilience in the current environment in this country. And you also see that our businesses in Europe across 8 countries where we have solid positions keep delivering consistently with strong contribution to the group performance.

Let me now turn to our P&C businesses. Thomas insisted earlier on our disciplined execution on all fronts. And when I look at P&C in '25, for us, it's the perfect example of this discipline, consistent execution to deliver strong performance. Earnings are up 9%, but what's most important is that we are improving in all ways, attritional ratio down, expense ratio down, lower PYDs, higher investment income, and we enhanced our reserve buffers. So how have we delivered this altogether?

We are following an operational playbook that is adapted to each of our 3 businesses in P&C that have more or less each the same size. Look at retail and SME mid-market, a year of excellent performance. Those businesses together represent 2/3 of our P&C business. And in those businesses, we delivered margin expansion while gaining market share in a favorable pricing environment. That's particularly true for the retail business with strong net new contracts and further improvement in an already excellent profitability.

Looking ahead on those businesses with those margins at excellent level, we will focus on further strengthening distribution to improve customer retention and enlarge the addressable market. It goes with reinforcing our proprietary agent network, further investing in our digital capabilities, but also forging new strategic distribution partnerships Look at what we did in Europe in '25 with [indiscernible] in Spain or Lloyds Bank in the U.K., it does give us access to new customer pools to further boost our growth. And last but not least, in retail, we are strengthening our direct channels.

It complements our excellent traditional distribution networks, and it helps us better meet evolving customer expectations. As you know, '25 was the year of Prima's acquisition. AXA XL on the other hand, and as we mentioned earlier, earnings are up 9% and again, with an excellent underlying performance. No PYDs excellent results, clear demonstration of our ability to grow and best manage the cycle. I would like to make something very clear on XL. Yes, the commercial market has become more competitive. But yes, also, we see attractive profitable opportunities we can capture, thanks to the diversity of our book. Thomas mentioned it, we are a major player in energy transition, in ensuring complex engineering risks, in ensuring autonomous vehicle technology and so on and so forth.

So we expect growth to continue on this path in '26 and beyond, and it will support profitability at XL. Alban will come back to that in a minute. So we are entering the next years with our P&C business from a position of strength with all businesses contributing best-in-class margins and distribution reinforced. But we should not be complacent with this strong position. We do see further levers that will help us sustain profit growth going forward. And the good news is that those levers are fully in our hands.

First, our expense ratio is already competitive, but we believe we can go further. We remain focused on further margin expansion through efficiency gains. This has already contributed in '25. It will become an even more important driver in the coming years in this business. Second, clearly, investment income will be a tailwind. It's supported by higher asset base given our strong growth as well as obviously higher reinvestment yields. And last but not least, as part of our data and AI road map, we will upgrade our pricing, underwriting and claims management processes.

Already today, we have realized 1 point of loss ratio benefit from our AI initiatives. This will be a major lever to ensure that we are well positioned in the future and further enhance our technical excellence. Moving now to Life & Health. There also, it's been a year of disciplined execution, disciplined execution to sustain earnings growth. You see solid performance of 7% growth and where basically we did what we said we would do. In the long-term business, '25 shows the first tangible outcomes of our strategy to rejuvenate our products and distribution. Life is back. Net inflows improved significantly across all geographies, and this supports CSM release over time with early benefits already visible in '25.

Alban will come back to it. On the short-term business, we grew our technical margin by 15%, while at the same time, as Thomas indicated, we absorbed the EUR 0.1 billion impact of a legislative change on recoverability of VAT in Mexico. So what does it demonstrate on the short-term business? The very fact that we have now a resilient health portfolio. The health business grew earnings by 17% in '25 despite this headwind. It does reflect the benefits of disciplined pricing, underwriting and claims management initiatives taken over the last 2 years through our dedicated health business unit. So from this strong year, we are well positioned to capture the increasing opportunities we see and that were underlined by Thomas, a rising demand and rising protection gaps, both on retirement and savings and on health and protection.

We believe that in Life & Health, we have laid solid foundations to capture profitable growth going forward. In retirement, it will come with rejuvenated offer and complementing our product range with protection features. To that extent, with the sale of AXA IM, we can now work in open architecture and source best-in-class asset management products to best match our customer needs. This long-term partnership with BNP will broaden our product offerings, notably in equities and ETF, but it will also enable us to access competitive products of other third-party asset manager. This will drive future growth of our savings business.

When you go to health and protection over the coming years, we believe there also that we can further enhance underwriting, reduce the impact of fraud waste and abuse through artificial intelligence and that those initiatives will further strengthen our competitive position. Before leaving the floor to Alban and to conclude, I would like to insist on the quality of our execution in '25. We believe this is the best tribute to the strong commitment of our teams across the world.

Our commitment to deliver our plan with strong discipline, our commitment to best leverage and further transform our unique insurance franchise. And yes, our commitment to deliver sustainable, predictable, consistent earnings growth. We will follow the same discipline and leverage the same commitment to take us to the next level and sustain in the next years, our performance with a strong focus on execution in 3 main areas where we see strong potential and again, 3 areas where we have everything in our hands. We do want to have an even more ambitious tech and AI agenda while so to unlock our organic growth potential.

We do want to extract more efficiencies from a deeper operational transformation that we are extremely committed to execute. And last but not least, we do want to continue to maintain our discipline on capital management. Thank you very much for your attention, and I'm happy to leave the floor to Alban.

Thank you, Guillaume, and good morning to all. So let me now go through the key numbers of 2025, starting with P&C. So as Thomas and Guillaume said, we delivered excellent P&C results with earnings up 9%. And as was said, we achieved these results while enhancing reserve prudence. All the drivers, growth, technical margin, expenses and investment income contributed to the earnings growth. So first, premiums.

Premiums grew by 5% with a good balance between pricing and volume and with strong contribution of all our lines of business. P&C combined ratio improved further to 90.6% with a 30 bps improvement in undiscounted attritional loss ratio, a further 30 bps improvement in the expense ratio, reflecting our efficiency measures. Nat cat stood at 3.4%, below the 4.5 points budget for the second year in a row. And we had a low reliance on PYD at minus 1.1 points. So all our lines of business are performing well. In P&C Personal and in Commercial Lines, excluding AXA XL, the undiscounted attritional loss ratio and expense ratio improved by 90 bps in both lines.

Going forward, we expect sustained growth and further margin improvement in Personal Lines and SME and mid-market. And you know that both represent together 2/3 of our P&C business. At AXA XL Insurance, margins were stable with a combined ratio at 91% with no PYDs, demonstrating our ability to grow while managing the cycle. At AXA XL Re, the combined ratio remains at a very attractive level of 81%. Overall, earnings grew by 9% at AXA XL and 18% at AXA XL Insurance specifically. Investment income was also a strong contributor, reflecting a higher asset base and reinvestment yields, more than offsetting the EUR 0.2 billion mechanical increase in unwind. So overall, high-quality results with good growth in top line, improvement in technical margins and expenses and growth in investment income.

And this growth in profitability was off a clean base with no businesses in turnaround. Moving on to Life & Health. Premiums were up 8%, earnings were up 7%, and both our short-term and long-term businesses delivered strong performance. In short-term Life and Health, insurance revenues were up 10%. Technical margins grew by 15%, while absorbing EUR 0.1 billion impact from a legislative change in the recoverability of VAT in Mexico. Adjusting for this impact, the combined ratio would have improved by 80 bps. These results demonstrate the quality of our health franchise. And we expect margins to continue to expand as we earn the benefits of underwriting and claims management actions.

On top, we expect to see better profitability in Mexico as we take actions to offset the impact of the VAT change. In long-term Life & Health, our efforts to rejuvenate the savings business are paying off. We see solid momentum with strong top line growth and improving net flows. In Life, in particular, our new business CSM was up 4%, but that's, in fact, plus 6% if you strip out the negative impacts of the higher interest rates on the discounted value of new business CSM, and we are very happy with those growth numbers.

CSM release grew by 8%. This reflects reserve growth from positive net flows from the annual interest credited to policyholders in general account and the favorable impact of equity market returns in unit-linked. On top, 2025 CSM release was rebased to reflect better margins. But this is a good base from which to grow, but at a pace more in line with our guidance of greater than 3%. We took advantage of strong CSM release growth to be prudent in fund distribution and long-term technical performance.

So overall, very good performance in both short-term and long-term businesses, and we are confident in sustaining this momentum. Moving on to net income. Overall, at group level, we delivered plus 6% underlying earnings growth. Excluding AXA IM, underlying earnings growth is plus 9%. Net income obviously benefited from the EUR 2.2 billion gain from the sale of AXA IM, and that was partly offset by unfavorable impact from FX and change in fair value of derivatives.

Overall, plus 8% growth in underlying earnings per share at the top end of our target range. And we achieved this strong performance while enhancing reserve prudence, as I said, and absorbing headwinds, minus 2 points from FX and minus 1 point from the temporary dilution from the sale of AXA IM. And finally, moving on to Solvency II. Our Solvency II ratio was 224% at the end of '25. And as you know, as of January 1, 2026, we have the end of the grandfathering period. So the pro forma Solvency II ratio at January 1, '26 was 215%.

But in addition, we currently estimate an uplift of 17 points from the Solvency II revision. This estimate is based on the January 1, '26 balance sheet and may obviously slightly change depending on the conditions that will prevail in Q1 '27 when Solvency II revision will come into effect. We do not expect the Solvency II revision to impact normalized capital generation. Our robust balance sheet provides us with additional capital flexibility, notably to reduce leverage. So overall, we are very pleased with our 2025 performance. We had solid delivery on top line and bottom line across all segments.

The group is in excellent shape with strong underlying trends across our businesses. And we are confident to deliver at the upper end of the 6% to 8% target range in 2026. So going into 2026, what are the trends to have in mind? P&C. So at AXA XL, we have room to grow earnings in 2026, reflecting the attractive growth opportunities while maintaining stable margins ex cat. In P&C Retail and in P&C Commercial Lines ex XL, pricing remains supportive, and we see good growth opportunities. We expect margins to further improve ex cat.

And as a reminder, our normalized cat load is 4.5%. We also expect financial results to grow in 2026, reflecting further increase in investment income, albeit at a slower pace than in 2025 and stable insurance finance expense at minus EUR 1.4 billion. In Life & Health, in short-term business, we expect revenue growth and expansion in margins, including from the progressive recovery in Mexico, reflecting the actions that we have taken to offset the VAT change. In long-term business, improving net flows trend in Life from commercial momentum and better persistency will fuel earnings growth over time.

We will continue to drive efficiency in 2026. And in the Holdings segment, we expect earnings to remain flat. So this gives us confidence to deliver the UEPS growth at the upper end of our 6% to 8% target range in 2026, while absorbing headwinds such as FX if FX rates remain where they are today. And with that, I hand over to Thomas for the conclusion.

Thank you very much, Alban. In conclusion, we have presented today record results at the top end of our target range, while at the same time, enhancing reserve prudence. You've seen that all businesses, geographies and lines of business are in excellent shape. They are delivering strong growth and profitability. And this is due to the fact that we have built a very diversified franchise that is well positioned now to capture the future growth opportunities. And we are certainly now laying the foundation for the next plan.

And as I said, we are confident in delivering a sustainable earnings growth. And for 2026, this will particularly mean that we can deliver underlying earnings per share at the top end of our range, and I'm very confident that we're getting there. Thank you very much for your attention, and we are now coming to your questions. It would be good if you ask a question, you say your name first and then your question. Thank you.

[Operator Instructions] First question is from David Barma, Bank of America.

Firstly, on P&C Commercial Lines, please. Given the change in market conditions since the start of your plan, we could have expected you to reach your target with a bit more support from investment income than technical results. But what we're seeing today is very resilient margins across commercial lines, including XL. Alban, you just mentioned you expect stable margins in '26. Can you give us some context on the key measures you're taking across the commercial lines book to offset the headline pricing pressure we're seeing in both the U.S. and Europe? And then secondly, on the big solvency ratio benefits you expect from the review next year, where do you see the potential uses of this additional capital? I'm wondering to what extent this gives you more flexibility on to take underwriting or maybe market risk, change your debt structure, perhaps free up cash in some local units, et cetera? Any color there would be helpful. And then lastly, on Personal Lines, the underlying margin deteriorated in the second half of '25 and were flat compared to the same period in '24 despite pricing having been ahead of claims inflation throughout the year. So can you give us some color on that, please?

Thank you very much for your 3 questions. I would suggest the first question around Commercial Lines was around the outlook for Europe and the U.S. We start with Scott for '26, and then we go to Patrick Cohen for Europe. When it comes to the solvency benefits, Alban, if you could take that question, what are we doing when we are back at 232% solvency on the 1st of January 2027. And then Patrick, if you could talk about the question of the underlying margin in retail over the last quarter. So let's start with commercial and Scott.

Thank you, Thomas. Just a couple of comments from AXA XL standpoint. With respect to the portfolio, we have a very broad, diverse portfolio. To give perspective on the insurance side, we sell -- we have about 400 different products, and we sell a mix of those products across 26 different countries. So that gives us somewhat unique leverage and be able to figure out where the margins are and how we allocate resources and capital to execute on those margins. With respect to the United States, in particular, the property market, while seeing more price reductions in the fourth quarter than obviously in the earlier quarters, still remains an excellent business, and we continue to write that business and move forward on it. The D&O business, in particular, while has been in a soft market for the last few years, we actually saw prices starting to level out towards the end of the fourth quarter, and we remain sort of optimistic going into '26 that we're coming out of that softening marketplace and into a little bit more stable to slightly increasing pricing in that marketplace. Other tailwinds for us is obviously, we're a pretty large buyer of reinsurance and some of the pricing on the reinsurance for us on the insurance side is going to help us relative to margin as well as our expense initiatives and also investment income. So you pile everything together, we remain confident in our ability to maintain our ultimate combined ratios at a similar level that we're currently at. Patrick, on...

Thank you for the question. I would start by saying that we are super pleased to have record high profitability in Commercial line in 2025. This is the reflection of a disciplined growth with resilient pricing that is above loss trend in '25 and we expect it to be in '26. So really an outstanding profitability. We have an all year below 90% combined ratio and importantly, high retention rate. When we look at our markets, the U.K. market has been a little bit more challenging with declining prices in some line of business, but we remain pretty much very much, I would say, disciplined across the board. As I said, resilient pricing, above loss trend in all countries and discipline in our portfolio management with some actions we've been taking. So going forward, -- we will continue with the same spirit to maintain those margin. We believe this is feasible. We have strong initiatives to further increase our technical excellence and win the preference of our customers. We're focusing on high growth profitable specialties that could be renewables in Germany or surety in Switzerland and other markets. We are making it even more easy to interact with us for our brokers with straight-through processing and underwriting platforms that -- in order to win their preference and the preference of our customers. And very importantly, we're ramping up AI capabilities Certainly, in underwriting, we're super pleased with some use cases we're having, for instance, in the U.K. that helps our underwriters speeding up data ingestion, triage and give them knowledge assistance in underwriting. So all of this makes us very confident to keep with the same trajectory of disciplined growth.

Thank you, Patrick. Alban, on the Solvency, knowing that solvency is very much also driven by future profit, which is not cash, but you will give some light into that.

Absolutely. David. So the first thing to say is that it is obviously a Solvency II revision. So given that at group level, we are regulated with this norm, it impacts our solvency. But a significant number of our subsidiaries have local regulations that are different. thinking about XL, thinking about the U.K., Switzerland, Hong Kong, Japan. So locally, you won't see a change in the solvency ratio. And therefore, that will not create for those entities additional solvency and therefore, additional ability to upstream cash. And in the European entities, Solvency is not always the constraining factor when it comes to paying additional dividend. So what will we use this solvency for? You mentioned 2 things. One is additional underwriting risks. At this stage, as you know, and you saw that in our Solvency II roll forward, we generate 28 points of capital every year before dividend and buyback. And so -- and 4 after paying dividend and buyback and having our organic growth. So today, capital is not a constraining factor for our growth. And so we are growing on lines of business that we like, where we have the proper profitability, as Scott explained. So we want to grow more, but having more solvency is not a factor in this equation. And it's quite similar on the asset side. Theoretically, you're right, we could take more asset risk, but that's not something that we want. The risk that we take on in our assets are not driven by solvency. They are driven by our ALM, our strategic asset allocations and a review of market opportunities. So fundamentally, what does that additional solvency give us? More capital flexibility and ability to deleverage if we want to.

Thank you, Alban. Patrick, on the question of retail and underlying margin deterioration?

Yes. So I would first restate what was said in the presentation in the introduction that this is an excellent year for retail in Europe, excellent performance, both on the top line, on the fact that we are gaining net new contracts everywhere and very significantly across Europe. And when it comes to the margins, I would stress the fact that our loss ratio is actually down over 2 points, and that's 1 point when you exclude cat. So that's a very, very strong performance. And again, this trend is reflected in all of our entities, which is something quite quite positive. Obviously, there's always a bit of variability from one half of the year to the other, depending mostly on weather condition and large losses. I think this is what explains the slight differentiation between half 1 and half 2. But overall, it's a very, very strong improvement we had in our loss ratio in retail.

I mean the net new contracts were like EUR 1.7 million, which is not nothing, so very good. We go to the next question.

Next question is from Thomas Bateman, Mediobanca.

I just wanted to come back to your positive comments on the full reports out. I remember looking previously and you haven't really Sorry, we have trouble reserves at all.

Thomas, sorry, we have trouble understanding you. I don't know if you are using your headset, but if you could maybe try again. We couldn't understand what you said.

Apologies. I just wanted to go back to the reserving and your positive comments on reserving. Can you give us a little bit more color there about what you've done? And in particular, if we were when the reports released the full report, what we see in terms of the most recent. And the second question is just on the distribution footprint you talked about in retail and SME. Can you maybe just give us a little bit of color on the...

Yes. Thomas, it was again, difficult to understand your questions. Let me try and see if we did understand the right thing based on the fragments we heard. So your first question, I guess, was around the reserve prudency that we mentioned. What have we done exactly? And the second one was about distribution footprint in retail and SME. Were those your 2 questions?

Yes, exactly.

Very good. So I think on the first question, Alban, if you could talk a little bit. I mean, it's relatively simple. If you look at the last year and the nat cat experience that we have had, we could have easier shown better results. We decided not to and instead increase our reserve prudence, but Alban will go into more detail. And then on the distribution footprint, retail and SE SME, we have the pleasure also to be joined by [indiscernible] who has recently taken over AXA France, where we have a very strong distribution footprint and where we're also strong in the development of our footprint. And maybe he can shed some light on where we are and how he's going to continue to do it, knowing that in France, wherever you are in France, you're never further than 4 kilometers away from an agency of AXA. Alban, on the reserving.

Thank you, Thomas. So on reserving, consistent approach over time has always been to have a prudent approach in all our lines of business, in all our countries. And you see that through the recurring level of PYDs that we have. We also said that we would manage together natural catastrophes, discount benefit and PYDs. And that's why this year, given the low level of nat cat compared to our annual budget, we could further enhance that prudence. I think in your question, if we understood correctly, there was also a question of geographic footprint of the ability to release PYD. And that gives me the opportunity to mention that, obviously, in France and in Europe, we have that, but also at XL, we've had a prudent approach at both XL Insurance and XL Reinsurance. You saw that we didn't release any PYDs in 2025 in those 2 entities, but we took the opportunity of that good year to further increase the prudence. And the -- and we are now on all our lines of business and in particular, in the long-tail lines of XL at a significantly better level of prudence than 4, 5 years ago, for instance.

Thank you, Alban. [indiscernible] And then I will suggest afterwards, because we talk about agent in France, Patrick can maybe add something around other distribution networks that we have activated like Couriers and Lloyds. Matthieu?

Right. Thank you very much for the question. So yes, we do have in France a very distinctive exclusive distribution force that encompasses almost 15,000 people on the ground, should it be tied agents or salaried commercial salespeople. And we have continuously invested in this workforce to illustrate, last year, it was more than 400 new distributors that joined this force on the ground to better serve our customers. So first, we grow numbers on the ground. Then on top of this, we keep investing in developing their expertise to better advise our customers, should it be on P&C, life and health but also on very important topics such as preventions, which is critical for the future and the topic of insurability. So numbers, expertise, but also we do invest in their tools that we put in their hands. And then I would also like to shed the light on what we do with AI. We are currently -- we have introduced to improve their productivity, a new tool that is based on AI to better interact when it comes to defining the underwriting or answering, sorry, the underwriting questions that they might have. We introduced an AI tool that was deployed very rapidly, probably in a speed that was unseen before. And we have, on a daily basis, more than 2,000 requests that are automatically answered. So better for their productivity. So we grow them in number. We grow -- we keep developing our expertise, and we keep equipping them with modern tools.

I would add to this that we have made a number of very significant deal in Europe on alternative distribution from our tied agents that are going to help decisively and are already helping to drive the growth. So to mention a few, the Lloyds banking agreement in the U.K. we're talking about a leading banking network serving 28 million customers. The partnership with [indiscernible] in Spain, which is the National Post that has over 24,000 -- 2,400, sorry, post offices. Social secretaries in Belgium, all those deals are going to fuel growth. I would add also the social Secretary deal in Belgium for serving micro entrepreneurs. And last but not least, obviously, direct. Direct is 18% of the retail business in Europe. With the acquisition of Prima, we're positioned Italy, but all of our direct platforms that are strong in Ireland, in Belgium, in France, in a strong position to leverage that expertise and the disruption they've been able to create in Italy.

Next question is from Farooq Hanif, JPMorgan.

I hope you can hear me. I just want to go to Alban to understand the investment margin. So when I look at Slide 41, I can see there's still a large gap between your reinvestment yield and asset book yield in P&C. And obviously, your insurance finance expenses, you're predicting to be a similar level to 2025. Can you talk about that dynamic going forward? So can we take the gap between asset book yield and reinvestment yield and assume that it, for example, closes over a number of years? And what is the kind of outlook for insurance finance expenses? And then allied to that, how come we've not seen the same dynamics in Life? And what do you expect for Life investment margin? And I just have one more question, which is, can you -- a question for Thomas. Could you please explain what you mean by enhanced capital allocation? Because it's a very nebulous term. It could mean a lot of different things, but what is that you were trying to say with enhanced capital allocation in the next plan?

Thank you, Farooq, for your 2 questions. And we will start with Alban on the Life and P&C investment margin. I think you have clearly spotted a future potential when you think about 2026 and the next plan, but Alban will explain the detail.

So thank you for your question. You're absolutely right. We see that as a strong opportunity for the coming years, and we do plan to close that gap between the asset book yield and the reinvestment yield. Bear in mind that we have a 5-year duration on our P&C business. So that's probably the pace at which we are renewing our bond portfolio. And we -- and the amount that we invest is very much in line with -- we invest every year is very much in line with that. And we don't want to change significantly our asset allocation. And so this is -- this target is reliable, I would say. And why don't we see the same on the Life side? Simply because as a matter of principle, you will see the same because we have a difference, which is even larger between the book yield and the asset yield on the Life side, as you see on Page 48. But as we said during the comments on the slides, Overall, Life & Health earnings grew at 7%. On Life only, we had a significant increase in CSM release by 8%. And so we thought that it was not necessary to have our funds distribute as much as last year. So last year being 24%. So that's why you see some flattish numbers on investment income in Life, but that's due more to setting money aside rather than not having better yield on our assets.

So Farooq, on the nebulous term around enhanced capital allocation to explain it in a simple way. We obviously have plenty of growth opportunities with the exposure that we have now in commercial line in health and retirement. And so the question is, for us, how do you -- how are we disciplined enough on these growth opportunities to make sure that we grow at attractive returns. And we have put up and enhanced the internal framework around how to understand these opportunities, how to understand their profitability and how to make sure that we are allocating capital even more there where the growth opportunities are, but where we can also grow at attractive returns. I hope that makes it clearer.

And Farooq, I realize I haven't answered your full question. I haven't answered on the the financial expenses, and they are expected to remain stable in '26 compared to '25.

Is the gap going to widen -- really sorry to interrupt. Is the gap going to widen is growing at a lower rate?

Should be stable, so not growing. And investment income in P&C should grow given the fact that we'll have a better book yield.

As I said to you earlier, Farooq, I think there is a potential for doing better, and you spotted it.

Next question is from Andrew Crean, Autonomous Research.

Three questions. One follow-up from Farooq. That capital allocation discipline comment, was there any part of your business where you're thinking that potentially the returns are not high enough and that disposals would be the route forward? Secondly, could you tell us what the Solvency II ratio would be in a crisis or GFC burn down coverage ratio? And then could you thirdly -- and you've talked a lot about it, but about more conservative reserving. Could you actually enumerate in terms of what the impact was on '25 from the additional buffers you built into both P&C and Life?

Thank you, Andrew. I suggest that I'll take the first question. And Alban, if you could take the second one around the Solvency II ratio in a GFC crisis, what's the coverage ratio? And then also the question around what do the numbers of this conservative reserving mean for 2025. So on the capital allocation discipline, Andrew, this topic is always an ongoing topic. So when we look at the question of disposal, we have disposed quite a lot to get our business model to a pure insurance player, but also to dispose of all the entities that we have had that were subcritical for us. This is a continuous evaluation. And so if we, going forward, see businesses where the capital allocation is not the way we want, we do not shy away from disposing it. But at the moment, we feel we are at a level where the majority of our business and the large majority of our business is in the right spot. But again, because markets are changing, geopolitics are changing and so on, this is an ongoing evaluation. Alban, on the question 2 and 3.

So on our Solvency II ratio after crisis, to be completely honest, we have not done the calculation in a post Solvency II revision world. But you will remember that what we've been saying over the last years is that a GFC-like crisis would cost us 30 to 35 points. So there's no reason to believe that, that amount, that number would change significantly after the revision. On the prudence that we have in our balance sheet, I mean, we obviously don't disclose any amount. And I think the calculation is quite simple to do when you look at our nat cat and our PYDs on the additional amount of prudence that we could do this year compared to usual.

And not forgetting, Andrew, that certainly at XL, we have been doing this for quite some years because at XL, we always had a very clear profit target and everything that Scott and his team generated beyond went into further reserve strengthening.

Next question is from William Hawkins, KBW.

First of all, are you thinking that your tech investment spend is currently a tailwind or a headwind to the 6% to 8% EPS growth that you're delivering? I'm just trying to get clear, do you think that you're sacrificing near-term earnings growth so you can have a better long-term earnings growth? Or are you already taking the net benefit of cost savings from your Big IT budget? Secondly, please, the 17 points increase from the review in the solvency, how much of that is coming from own funds and how much of that is coming from required capital? And then thirdly, in this presentation, you've dropped any reference to book value growth. I know why, but that featured quite highly in your 2024 presentation as part of the compounding value narrative. So I wonder if you could just talk a bit about how you're thinking about that metric has evolved and how you're thinking about performance management relative to that metric, please?

Thank you, William, for your 3 questions. I suggest that on the first one, we let Guillaume Boy talk about it. And as you have heard already in the areas that Guillaume was mentioning about concrete cases, we are working very much on cases that have a short-term payback. When we talk about the second question, Alban, around 17%, what is the split? And then on the third one around the compounding of the book value, you will also get to it. Obviously, this was affected by foreign exchange, but you can give the detail.

So on technology investment spend. So first, technology investment spend is likely to increase in the coming years, and we are determined to do that because we are convinced indeed that we can extract gains and future earnings from an accelerated investment in AI. We have started already doing that in this plan. And as I mentioned earlier, you do see tangible effects. So it is indeed a tailwind to that extent. We gave you the tangible effect on the loss ratio in P&C, where our accelerated investment in AI has helped us improve the loss ratio by 1 point. On the other hand, we do acknowledge the fact that on several of those cases, profit emergence will take time. And therefore, we are extremely committed to our target. And we know that we have other levers to improve expense ratio in order to more than offset the impact of the additional technology spend. So those other levers, what are the stronger efforts on procurement discipline across the board and accelerated efforts in shoring in all of our countries. Those elements are key element of our efficiency plan. And again, all in all, they will help us to more than offset the additional technology spend we need to do in order to prepare for the future and extract further earnings generation power in particular for the next plan.

Will, on the Solvency II review, it obviously depends a bit on the market conditions, but it's 90% to 100% EF and almost nothing in required capital. And on your last question on book value growth, book value growth does matter to us and very much in line with what we said, as you pointed out, 2 years ago. So the book value growth is 1.5% for the whole year. But as Thomas mentioned, it's impacted by FX and notably by the U.S. dollar. Excluding that impact, it would have been plus 9% and therefore, very much in line with what we want to do because we want to grow that book value number.

Next question is from Andrew Baker, Goldman Sachs.

First one, just on the P&C top line, growth was 5% in 2025. Obviously, we've still got some FX pricing volume trends. How are you assuming this develops in '26? And then secondly, are you able just to provide an overview of the changes you made to your reinsurance program in '26? And any comments you're able to make on pricing and combined ratio impact would be really helpful.

Thank you, Andrew. On the reinsurance program, we let Alban outline these changes. And by the way, to go back to Farooq's question around constant improvement on capital allocation, this is also part of it. And then on the top line, I would suggest that, look, let's have the 3 market heads, Scott, Patrick and Mathieu to give a quick view on what you think 2026 will be. So let's start with the second question, Alban, and then we go to Scott, Patrick and Mathieu.

So thank you, Andrew, for your question. Fundamentally, we have not changed significantly our reinsurance program for '26 compared to '25 in the arbitrage between lowering retention or attachment points and enjoying better prices, we decided to enjoy better prices. And we could see, for instance, that in property and property cat prices for reinsurance for our own program were down more than 20%. So that will obviously support our earnings in '26.

Scott, Patrick and then Mathieu on what do you think about the P&C top line in 2026?

Yes. I think for insurance for AXA XL, I think we're thinking 2026 is going to be in line with sort of 2025. And the reason we think that is a couple of things. One, the topic of conversation has been around these data centers, and we're very excited about the opportunities facing us in the data centers. We're one of the few markets that can bring not only the construction capability, ensuring the construction side, but also the operating side to it across not just property, but all the lines of business, casualty, environmental, professional lines that obviously these data centers need globally, and we can deliver that across the whole board. Obviously, we're very carefully managing our aggregations on that. but we also know that we need to be able to deliver in the local marketplace. The interesting thing for us also on those is we've invested quite a bit into our alternative energy business over the last couple of years, and that's going to become an ongoing discussion for the data centers, and we're somewhat uniquely positioned to deliver on that capability that these clients are looking for, both engineering, claims as well as underwriting. The last thing I'll say is there's also the sovereignty boost you see in Europe with respect to the infrastructure bill, defense build, et cetera. Those are our clients who will be working on that over the next few years, and we actually consider that a little bit in '26, but we'll see more of that in the future as an opportunity to assist our clients as they continue to grow and build their businesses, that's actually good for us as we are an important partner to them. So we remain very optimistic about the opportunities facing us in 2026.

When it comes to Europe, we are also confident in keeping the momentum. We see this in the beginning of the year. If I take the example of retail, we're having 200,000 net new customers. So the momentum keeps going. As I said, the pricing environment remains conducive both in retail and in commercial. We have those new sizable distribution partnership that will mechanically improve the growth, again, Lloyd's, [indiscernible], Prima. And we are working actually a lot leveraging AI to enhance cross-sell and retention in a very good quality portfolio, both in personal and commercial lines. So those are all the levers we're going to pull to keep that momentum.

And to conclude with France, so we have -- we see a very good momentum. If I start with retail, we had a historical year with more than 500,000 net new contracts in retail, not only with AXA France, but also with our direct business, direct Assurance, which is the clear leader in the digital space. And we do that similarly to what Patrick mentioned in Europe with a very good profitability, leveraging our power AI-powered pricing tool. So very good momentum and very good outlook on the retail side. And on the commercial side, the current renewal campaign doesn't show any softening on our side, which is a very good news. And as you know, we are very well balanced between tied agents and brokers. So yes, a very good outlook as well on the commercial line, where we will keep applying our traditional underwriting discipline at the same time.

Next question is from Will Hardcastle, UBS.

It's Will Hardcastle, UBS. We saw some headlines a couple of weeks ago on the potential LLM distribution risk. I guess, how are you thinking about this risk on the retail and perhaps SME business? And where would you see the greatest risk and opportunity from a geography or line of business? Interested in your thoughts whether you even view this as a credible risk across Europe or not? Secondly, I recognize you're hinting and you're suggesting that you've looked at the gap between nat cat discounting and PYD, et cetera, to work out that resilience build. But can you try and help us to understand how we can look to add confidence to those words, whether that's resiliency build and confidence levels or a ratio you can point to?

Thank you, Will. I suggest that Guillaume Borie is taking the first question around the LLM distribution risk. And I think what's important to see that every technological revolution will potentially bring forward new competitors. But when you look at the last digital revolution in insurance, it has more ended up in a way that these new competitors have collaborated and partnered with the existing players. And I think that's probably what might happen here as well, but Guillaume might have even more insight. And on the second one, Alban, we need to get a bit sharper because obviously, that question is coming back on the question of nat cat and PYD. Guillaume?

Thank you very much. So when we look at LLM distribution, we very much see that as an opportunity. For us, it's another distribution channel that is opening up. And we have had a long experience of strengthening our distribution footprint by entering those new opportunities as quickly as possible. This is what we have done consistently over the past 20 years with direct distribution, turning us into a leading direct player. And every time, we see that as another opportunity of enlarging and expanding our reach to customers. So yes, it will transform long term probably the way we distribute. But we believe that for us, it's a way, again, to gain a new channel. How do we make that happen? We have already started working on it. We are currently rolling out across all our retail operations, what we call a brand tracker. It's a tool that our teams are using locally in order to identify how we are ranked in those LLMs and what we need to do in order to optimize the way we are presented in those LLMs and in the results that our customers are seeing so that more and more, we are on the first rank. That's what we have done in the past with more traditional search engine optimization techniques. That's what we will do now with LLMs.

I will answer in the following way. We designed our risk adjustment so that in total, between the best estimate reserves and the risk adjustment, our confidence interval is 65%. And what we will add to that is that we have a prudent best estimate, obviously, within the rules of IFRS 17, but a prudent best estimate. So in total, we are above 65% confidence internal.

Good. Thank you, Alban. We have 8 minutes left and 4 questions. So I would suggest we try and cover them all. And I ask the AXA team, including myself, to give short answers. So next question.

Next question is from Michael Huttner, Berenberg.

Really quick, how much capital are you allocating to your Life growth? Because I've not -- I haven't looked in detail on the slides, but apologies. But it's more now the broader topic of pensions rather than protection and unit-linked by product. And then the second question on Prima. Now you own it and you've had a decent look, how much extra capacity in terms of profit or growth have you got or how much more confidence than before?

Thank you, Michael. So we start with Prima. Patrick is going to answer the question because he's the business owner of Prima now. And then while Alban is looking for the capital allocation to the Life growth, we'll get that afterwards. Patrick?

Yes. To be very specific, thanks for the question. First off, the performance in '25 exceeds our expectation. GWP is up 39% to EUR 1.8 billion. Prima has captured 40% market share. It's of the direct space and it's 12% market share of the Motor business in Italy. Combined ratio is very solid at 85%. So at this stage, the profit at the MGA level last year was EUR 97 million on a 100% basis. And we estimate the third-party carriers profit addition being EUR 60 million to EUR 70 million. So we intend to recapture this profit over time. So you can consider that it's already EUR 110 million to EUR 120 million earnings from Prima with a 51% stake.

Thank you, Patrick. Alban?

So Michael, on the allocation to Life, first, one thing to remember is that when we say that we generate 28 points of solvency capital, that's after having funded the capital requirements for our developments, including in Life. But then if we look at the breakdown of our capital by business line, Life & Savings is around 41%, and that's the same number as in '24.

Next question is from Dominic O'Mahony, BNP Paribas Exane.

It's Dom O'Mahony from BNP Paribas. I'll just keep myself for 2, if that's okay. One is, I'm really surprised by the guidance on the insurance finance expense. I don't really understand why it's not growing more. Could you just run through why it isn't growing more, Alvin? I would have expected over time at least, the book yield would trend maybe up to the high 2s or something of that level given your business mix. So anything you could say about why it's not growing more in '26 and what the sort of the end state would be once you've sort of washed through the whole book, that would be great. And then just on cash and debt, Alvin, I think you sort of gently hinted that you might consider using your cash position to delever. There's not much debt left coming to maturity or call in '26. Would you rule out liability management exercises? Are you more focused on deleveraging organically and/or through maturities or calls? Any color on that would be helpful.

First question for you, Alban.

Dom on the EA, I think it's very much in line with our plan. If I remember correctly, we said EA will grow by EUR 800 million, and that was EUR 600 million in the first year of the plan, then EUR 100 million, EUR 100 million. So between 0 and EUR 100 million for EA next year is really what you should have in mind. And then on the cash and the deleveraging, I mean, the obvious thing to say is that, as you saw, we have some debt, which has lost the benefit of grandfathering and -- but we still pay a subordinated debt coupon on it. So -- and we have EUR 2.4 billion of debt in that category. So it doesn't make sense to keep them forever, I would put it that way.

Next question is from James Shuck, Citi.

Okay. Then we move to the next question and last question.

Next question is from Kailesh Mistry, Deutsche Bank.

So the first one is on Solvency II. Obviously, we've gone through -- we've got through the grandfathering. We've had the review out of the way. The business has reduced its risk profile and appears to be improving its prudence. So when we move into the next plan, should we expect you to sort of lower that target range again? Or would you stay around what you effectively guided towards for this plan? The second question is on AI and technology. I think Thomas spoke very eloquently about what you've done in that space. Just to sort of nail it down, which of the applications do you expect ultimately to be competed away? And in which areas do you think you can hold on to the advantages?

Thank you very much. So let me ask both questions. I mean, I answer both questions. So on Solvency II, I mean, we don't have a target range anymore. So we have a simple rule internally. Everything that is above 200% is good. And whether it's 215, 230 doesn't really matter to us. It's just important that it's above 200%. And as Alban explained beforehand, our ability with a higher solvency ratio of extracting more cash is relatively limited because that's not the driving factor nor is the question around solvency being driven by quite a lot of future profits. So we are -- we want to have a high solvency ratio, and it's important that it's above 20%. Then on the AI and technology, I would say you have 2 areas. One is the areas around efficiency where you mainly draw on market-based applications, if you think about call center optimization and so on. So in this area, I would say you probably will have difficulties to keep the additional margin for a long time. And then you've got the other areas, which is very much in the pricing prevention space, where I believe that it's very much linked to your own data, your own data quality. which is obviously not a market-driven solution. And in these areas, you will have a lot of the margin that will not be competed away. And obviously, our aim is to spend most of our energy in the second part. Obviously, we have to do the hygiene piece when it comes to copilot and application development when it comes to deploying market-based software and call centers and so on. But when it comes to the question about leveraging data, that's where we spend most of our time and most of our money. Very last question because it is now 30, but I heard that James is back in line. So James.

I'll keep myself to one question. And really, I just wanted to ask you about the journey around hyperpersonalization, particularly in retail P&C. I'm keen just to understand where you are in that personalization journey at this point? And what are the things that you see on the horizon that you're moving towards? And then if we take a more medium-term view, how will that hyperpersonalization ultimately evolve?

Thanks, James. That's a very good question. I mean, when you look today, probably the most advanced business we have within AXA on hyperpersonalization is Prima because they are the ones who have shown us away, and they will also be the example that exists within AXA for the rest of the AXA Group. And maybe, Patrick, if you wouldn't mind to talk a little bit about what Prima has done, so it becomes a bit more operational and clear for James.

Yes, certainly. So hyperpersonalization for us is one of the levers we have been using to grow and grow profitably, and Prima exemplified this through pricing sophistication, through the ability to put all this sophistication in their rating engines, they provide today a pricing that is very well adapted and very competitive to select the best risk. And they do this with models that enable to have dynamic pricing. So models that are continuously updated. That's on the pricing and growth side. On hyperpersonalization, I take your question as well to comment on another areas where we are at this stage, experimenting with very promising implementation, which is the one around how do you cross-sell more, how do you retain more customers, i.e., the right offer at the right time to the right customers. We're developing aggentic CRM solutions, whereby the system collects all the info, all the situation of the customers, adapt and analyze that, predicts the needs of the customer and in an automated way, develop hyper-personalized e-mails, hyper-personalized communication. When we implement this in those markets, we're seeing uplift that are quite remarkable, and we're going to scale that.

Thank you, Patrick. So we have to unfortunately come to the end of this very interesting exchange because, obviously, today, other competitors of ours are also releasing, and we also want to respect their timing. Thank you very much for participating and for asking your questions. We look forward to seeing you soon again and hopefully, latest at the -- on the 21st of September this year when we are hosting our Investor Day in London to reveal the next 3-year plan 2027 to 2029. Thank you, and have a great day.

Good morning, and welcome to AXA's First Half 2025 Results Call. Presenting today are Group CEO, Thomas Buberl; Group Deputy CEO, Frederic de Courtois; and Group CFO, Alban de Mailly Nesle. Also in the room are Guillaume Borie, CEO of AXA France; Patrick Cohen, CEO of AXA Europe; and Scott Gunter, CEO of AXA XL.

With that, I turn it over to you, Thomas.

Thank you, Arnaud. Good morning to all of you, and thank you very much for joining our first half 2025 earnings call. As you can see from the results that we have published this morning, our business is in excellent shape.

We have developed a strong organic growth of plus 7% top line and underlying earnings per share is up 8% at the top of our target range during this plan. We are generating a very attractive return on equity while maintaining a strong capital position with a Solvency II ratio of 220%.

Our results reflect the strength of our model, which is simple, balanced and now with the completion of the sale of AXA IM, completely focused on insurance. We are very much on track to achieve our planned targets, and this is important to say because we are in the middle of our current 3-year plan.

If we go to the next slide, these results reflect the quality of our franchise and show that we have executed in a disciplined manner, very much in line with our plan. Our businesses all of them are delivering solid organic growth. We are well balanced between pricing measures and volume growth, and we are also well balanced between the line of business.

If you look at the growth of 6% in P&C, 9% in Life and 6% growth in Health. This is not only strong top line growth, but the top line growth is also converting into higher earnings growth through a continued focus on technical excellence.

We have delivered further margin improvements, particularly in P&C and Health and have also shown higher net flows in Life & Savings, which is reflecting the strong momentum of stronger sales and better persistency.

Importantly, we have achieved these good results while continuing to invest in our business. In particular, we are investing in technology solutions and capabilities to expand our mid-market business in Europe and the Americas. We are modernizing our core tech platforms and building strong data foundation to deploy and now scale, artificial intelligence and also in particular, general artificial intelligence across the group.

We are also investing in expanding our distribution networks and tools to sustain our growth momentum. So in short, we are executing on all of our priorities, our operating businesses across all geographies, across all lines deliver strong results, very much in line with our plan, and we have built a business that is now a reliable profit generator.

If we move to the next slide, obviously, the environment is becoming more complex with geopolitical tensions, tariffs, macroeconomic uncertainty from trade wars and in particular, also social fragmentation. We entered this environment in a position of strength.

Our business is well balanced between P&C, Life & Health, and we are not overly exposed to any single geography which is a great position to have given this growing geopolitical fragmentation.

All of this gives us confidence to not only deliver our planned targets, but to also sustain future earnings growth. We see several important levers for earnings growth beyond this plan. You've seen in the numbers that we are rejuvenating our Life business. This is already delivering results with strong sales momentum and accelerating positive net flows. This will clearly drive earnings growth over time.

Secondly, in Health, we are investing in care delivery, care coordination and prevention to become more than just a pure play of our Health competitors. This should drive more margin improvement, building on what we expect in this plan by reducing fraud, waste and abuse in claims and improving patient outcomes to drive higher customer retention. This specialization will further improve our competitive positioning in order to capture growth opportunities in health and employee benefits.

We are also strengthening our distribution to expand our addressable market and capture market share. What does it mean exactly? We are adding to our proprietary agent distribution and invest in their digital capabilities in order to better serve our core mass affluent customer base. We have also, at the same time, forged more strategic partnerships, such as the one with Correos in Spain, which represents the Spanish postal system, and it expands our reach to rural customers and those with modest incomes. But we have also struck an exclusive partnership with Lloyds Bank in the U.K. for Personal Motor, covering roughly 20 million customers.

As you can see from the acquisition of Prima, we are also strengthening our direct distribution. This channel is not in competition, but complementary to our traditional sales channel which is targeting digitally savvy and price-sensitive customers. Frederic in a moment, will talk more about this.

While we are already operating with a very high NPS across all markets, we see the opportunity to further increase our customer retention and to improve cross-selling through investments in customer service, in digitization and AI to improve customer experience through a more tailored way of offerings and by reducing, obviously, the cost to improve customer value.

More broadly, we see a great and significant opportunity to increase productivity, claims and operational efficiency in order to enhance our pricing and underwriting from scaling AI.

We started a test and learn approach within AXA and identified a selected number of cases that we have deployed across the entire group. Leveraging this experience now, we are pivoting to transform 4 areas: One is customer contact centers; second is claims; third is underwriting; and fourth is software engineering. The benefits from these initiatives are still to come.

So if I have to summarize, our model is well placed to deliver sustained earnings momentum in a challenging and changing world. Secondly, we see catalysts for future growth beyond this plan. And thirdly, we are very confident that our strategy will drive value creation for our shareholders, including through disciplined capital deployment.

If I come to the next page, which is my conclusion. Our focus on execution has delivered strong results, with an underlying earnings per share growth at the top end of our range. The businesses are delivering and all of them in line with our plan. We are well positioned to sustain this earnings momentum with clear catalysts for future growth beyond this current plan. We are committed to continuing a very disciplined capital deployment, and we are confident that our strategy will deliver long-term shareholder value.

Thank you, and I'll now hand over to Frederic.

Thank you, Thomas. Good morning to all. We are -- as you've seen, we are pleased to announce the acquisition of Prima, a quality company, the leading direct player in Italy with strong growth, superior technical excellence, an internally developed and smart tech platform and a team with strong entrepreneurial spirit.

According to us, this acquisition has 2 main dimensions. The first one is to bring scale in Italy, one of our core and strategic markets. And the second one is that it reinforces our existing direct franchise.

If I look at Prima. Prima has grown significantly since its launch in 2015, generating EUR 1.2 billion of premium in 2024. With a modern, scalable technology platform, Prima sells not only via price comparison websites, representing about 40% of the business, but also directly through its own website, about 30% of its business and through multi-tied agents, about 30% of the business.

It has captured 20% share of new business and an overall market share of 10% in motor. This market share gain has continued in first half '25 with premiums up 47%. With Prima, AXA will almost double the size of its motor book in Italy, and it positions the group at the level of the top 3 players in the Italian market on the motor business.

It has delivered this growth while generating an underwriting profit with an excellent combined ratio of 90% in '24. Prima has sophisticated pricing capabilities leveraging external data sources and behavioral models to capture the right customers and consistently achieve a claim frequency that is lower than market levels. It also has a competitive expense ratio supported by modern technology and lean processes, including end-to-end digitalization.

This is important to understand that Prima is the first real disruption that we are seeing in personal lines in Continental Europe. Prima has a winning model, delivering growth and profitability. And all of this is validated by our extensive due diligence on the loss ratio and an extensive due diligence on the reserves booked by Prima reinsurers.

Management and founder absolutely wanted to stay on board further reinforcing the confidence in the business. In one word, Prima is an attractive business that brings us scale in Italy and additional know-how on the direct business.

Moving to the next page on our direct franchise. This is something we've not discussed in the past, and I think it's good that we discussed it a bit now. So Prima will strengthen our direct franchise. And you know -- you don't know that AXA is already a major direct player. The group currently writes EUR 3.5 billion of premium across 8 geographies with top positions in 4 markets and profitability in line with overall personal line margins where we have scale.

Except in the U.K., direct penetration remains relatively low in our core P&C markets. Nevertheless, we expect this channel to show high growth in the future. It targets a growing customer base of young, digitally savvy and/or price-sensitive customers and will contribute to addressing protection gap by offering more affordable solutions to customers with modest incomes in motor, but also beyond motor.

The direct channel supplements our traditional distribution to widen our customer reach. Prima will further enhance our direct franchise by bringing a modern digital omnichannel platform that offers seamless user experience for customers and agents.

A very tech-focused organization with nearly 40% of the workforce comprising of software engineers and data scientists, and an entrepreneurial and experienced team that can support the development of our overall direct business in Italy and beyond Italy.

As a conclusion, I would say that Prima is an attractive acquisition for us and totally in line with our M&A policy. It brings scale in Italy and capabilities to enhance our direct franchise. We paid EUR 0.5 billion as a consideration for 51% of the company. We have put and call options in a few years for the remaining 49% and the price of this put and call is tied to earnings.

And including the capital required to recapture the business currently underwritten by third-party insurers and reinsurers, the total consideration corresponds to a price earning ratio of 11x. So we are investing to strengthen our direct franchise, and we are well positioned overall at AXA and even more now to capture market share in direct and accelerate growth.

Thank you, and I leave the word to Alban.

Thank you, Frederic. Good morning to all. So I will not comment on every slide of this section, so that we have more time for the Q&A. I'll start on Page 14 with the P&C earnings.

So P&C earnings grew by 7%, driven both by an excellent underwriting result from higher volumes and an improved all-year combined ratio and an increase in investment income from higher net cash flows and reinvestment yields, which more than offset the impact from unwind.

Our P&C business has delivered an attractive combined ratio at 90%, in line with our plan, reflecting first, an improvement in the attritional loss ratio, minus 0.2 point; a better expense ratio, minus 0.1 point, mainly coming from non-commission expense ratio, and that reflects our efficiency measures. Nat cat stood below 4.5 points budget and reliance on PYD was also low at minus 1.1 point.

All our lines of business are performing well. And so to give you more color, in P&C personnel, we are expanding our customer base in a really conducive pricing environment with revenues up 7%. That has allowed us to improve the attritional loss ratio by 110 bps versus 1H '24. And we expect margins to further increase as pricing is earned through and inflation moderate.

Commercial Lines, excluding AXA XL Insurance, you know that they consist mainly of SME and mid-market businesses in France and Europe, and therefore, are less cyclical, and for that part of the business, pricing conditions remained at good levels. Revenues were up 4% and attritional loss ratio has improved by 30 bps in 1H '25. We had excellent profitability there at 89.8% combined ratio and with margin improvement to continue.

At AXA XL Insurance, we remain focused on retention and disciplined growth with revenues up 6% in 1H. Margins there again remain at attractive levels at 90% combined ratio with no PYDs.

Earnings were stable, with return well above cost of capital. So we see market softening in some lines of business, but very importantly, we believe we can maintain the level of profitability in dollar terms for this plan, including through better investment income and by managing expenses while continuing to invest in our growth initiatives.

Lastly, at AXA XL reinsurance gross revenues grew 11% with growth supported by alternative capital. So this distorts a bit the reported combined ratio on a net earned premium basis, the margin improved by 90 bps. So overall, strong numbers with good top line growth, improving margins and good prospects.

So if I move now to Page 18 for Life & Health. Earnings there were up 5% versus 1H '24 with contribution from higher technical and financial results and CSM release. Short-term Life & Health business continued to perform well in the first half, with revenues up 8% and margin improvement of 40 bps, in line with the plan. We are in a good position to grow from here, and we expect margins to further expand, thanks to the combination of our actions on pricing, underwriting and claims management.

In long-term Life & Health, technical results were up 4%, including CSM release growth of 2%, and we are continuing to build good momentum. Revenues in protection in GA savings and in Unit-Linked were up 9% each. And we saw increased momentum in Life net flows with positive net flows in Life & Savings of EUR 2.1 billion. And this drove a normalized CSM growth of 3%.

And lastly, financial results were also higher, largely driven by better reinvestment yields. We are confident that we can grow from here with short-term technical results expected to drive near-term earnings growth, while the positive momentum in long-term Life & Health business will fuel CSM growth and lead to higher CSM release over time.

Moving to the next slide on Page 19. At group level, we have delivered 6% underlying earnings growth. Strong performance, as we -- as I've just described, from our P&C and Life & Health operating businesses.

Asset Management, you know that it's the last semester that we consolidate AXA IM. AXA Asset Management earnings were down 14% due to a higher cost income ratio and holding costs was stable versus 2024. So overall, thanks to this, we have an 8% growth in UEPS at the higher end of the target range of 6% to 8% that we have for this plan. So this includes, obviously, the 6% underlying earnings growth, plus the benefit 3% from share buybacks and lower interest expense on undated debt and an unfavorable ForEx impact of minus 1%.

Net income was down 2% at EUR 3.9 billion as the increase in underlying earnings were offset by unfavorable FX. So just a word on this because it's roughly an impact of EUR 300 million. And it's due to nonlocally denominated assets in local balance sheets. We have roughly EUR 3 billion of assets that are non-denominated in the same currency as their balance sheet, EUR 3 billion out of EUR 450 million. That was mainly an impact coming from the dollar, which roughly went down by 10%, EUR 3 billion times 10%, that is EUR 300 million that you see here in net income.

A word also on the FX impact on underlying earnings, still on the dollar. If you look at the average FX and you know that for P&L, we take average FX, between 1H '24 and 1H '25, there was a little difference. But if the dollar stays around its current level of, let's say, 1.16, 1.17, it's a bit higher these days. But let's say 1.16, 1.17. It would mean that on average, for the year, the U.S. dollar FX rate will be down 5% compared to full year '24.

5%, that's an impact on our UEPS of 1.5 percentage points. So highly manageable. So that's what we should have in mind. One, the impact is ahead of us. But second, the impact is really minimal and manageable.

Moving on to Page 21 on Solvency. So our Solvency ratio stands at 220% at the end of the first half, 15 points from normalized capital generation, reflecting strong earnings and limited capital needs to further growth. You know that our group guidance for the year is 25 to 30 points. And as we saw the other years, there is a bit of seasonality similar to earnings.

We have minus 12 points from dividend and annual share buyback to come in '26 but provisioned already in the first half, plus 8 points from the issuance of EUR 1 billion of RT1 and EUR 1 billion of Tier 2 sub debt that we did in May. And you know that we will continue to manage actively our stock of debt. Those plus 8 points were offset to some extent by the share buyback that we did in June in relation to the AXA share plan that we will launch in September and certain stock-based compensation that, as you know, we are offset through buybacks. There was also in those numbers the impact of the Nobis acquisition in Italy.

Overall, market FX were neutral, reflecting small impact from the widening of spreads, not to be in Japan, offset by lower interest rates. But importantly, you see also that FX had no impact simply because the numerator and the denominated in local currencies move in sync. So when the numerator comes down, the denominator comes also down. That's why we don't have an impact on the FX on our solvency.

We have limited changes in our sensitivities. But you will notice that some of them have come down, especially European sovereign spreads and listed equity.

So overall, we have a strong balance sheet with a very capital-efficient model, a high-quality asset mix, with most of our assets in liquid fixed income invested at the high end of the rating spectrum. And the group is in good shape, both in terms of earnings and in terms of balance sheet. And we are, therefore, confident that we can navigate the changing environment that Thomas described from a position of strength.

A few more thoughts on what's to come in the second half that you should have in mind. So obviously, we will carry on with our consistent execution in P&C and Health, where we will see further margin improvement, as I said, and that's in line with our plan, and we will keep on investing in tech, data and AI, and we will see also continued positive momentum in savings net flows that will drive over time, CSM, and we expect holdco costs to remain stable.

At this stage, we are keeping our 4.5 points of normalized nat cat load for the year. You should bear in mind that there is always some seasonality investment income and discount benefit, which are slightly more skewed towards 1H.

And you know that we started the EUR 3.8 billion share buyback associated with the sale of Axiom to BNP Paribas. But we will not have the full benefit in 2025 in terms of anti-dilution, given the time it will take to complete the buyback. So overall, we expect UEPS growth in 2025, taking into account what I've just said, to be in line with the planned target.

And so I'm now leaving the floor to Thomas for his conclusion.

Thank you, Alban. As you have seen from Frederic and Alban, we are executing well on our priorities. We are focusing on really making sure that the business is delivering in line with our plan. And that's why we believe we are well positioned to sustain this earnings momentum despite the fact that there are some negative FX development coming from a weaker dollar. But the fact that our franchise is diversified that we have -- we are in many geographies across many lines of business, gives us the confidence to deliver on our plan and certainly to continue to drive a strategy of a disciplined capital deployment.

Thank you very much, and we are now going to your questions.

The first question is from David Barma from Bank of America.

Firstly, I wanted to kick off with Prima, please. What kind of run rate earnings contribution are you expecting from the business once the full underwriting is recaptured? And if you can also comment on the synergy potential from the deal, which I don't think is included in the multiple you've disclosed?

And then secondly, on commercial line pricing at XL, could you please unpack a bit the plus 1.1%. If you could talk about the trends in the main business lines?

And then lastly, on Life & Health and the short-term results. I guess I would have expected the combined ratio improvement to be a bit more front-end loaded than it seems to be. So could you please talk a little bit about the speed of improvement in the short-term combined ratio and whether you expect most of the target to be achieved this year?

Thank you, David, for your 3 questions. I suggest that Patrick will talk about Prima, run rate earnings contribution and synergy potential, and it's true that we have not included a lot because we also want to leave the Prima business completely separate.

Secondly, on the commercial line pricing, Scott, if you could talk about the outlook and the trends. And then, Alban, if you could talk about Life & Health because we see within the numbers, a currently different trend between Health and the Life part, i.e., protection. So Patrick, Prima.

Thank you, David, for the question. So as it has been highlighted by Frederic, I just want to go back to what makes the strong strength of Prima, I want to give you some numbers. First policies sold in 2015. In 2024, they had 4 million customers. So it's one of the, I would say, the greatest disruption we have seen from a digital model in Europe.

When we look at what we consider being the earnings fully captured with the underwriting piece, we are at EUR 87 million. And we have a CAGR growth in that business that has been around 40%. So it's pretty impressive. Our calculations give us an undiscounted core of around 90%. And this stems, as Frederic said, from, I think, 3 or 4 sources of competitive advantage: First, superior pricing capabilities. They've really managed to anti-select, if you will, the market with a very technical pricing, far less utilization than what you see in other players.

The second one is the lean organization structure within non-commission expenses, which is best-in-class in the market and the expense ratio as well. And a very strong cross-sell of ancillaries, far greater, almost double that what you would see in the market with ancillaries such as assistance, personal accident or legal protection.

The synergies, we are also very excited about what we can do because fundamentally, you don't have an overlap with our business today. In Italy, we have a very strong P&C business through our agents. We have through the acquisition of Nobis, a specialized play in the automotive part of the business. And now we have with Prima a possibility to be the market leader in direct with 40% market share.

So no overlap and great synergies. We are thinking in 3 directions, in particular. When we sum up all of that, we'll have more than 7 million customers. Imagine what we can do from a claims procurement standpoint, imagine what we could do by cross-selling on our customer base and very importantly as well, complementing the product range of each of those channels with the offer of Prima and the offer -- our classic offer within Prima. So a lot of, I'd say, stand-alone potential, fabulous momentum, a very profitable business that stems from competitive edge and some good synergies that we see ahead.

Thank you, Patrick. And just to add a few more numbers when it comes to the run rate. So 2024 was a result of EUR 87 million. The top line growth is 40%. And if you look at the Q1 this year compared to Q1 last year -- sorry, H1 this year versus H1 last year, the result has doubled. So it's -- as Patrick said, a very disruptive model with a very interesting and good dynamic.

Scott, on the commercial land pricing?

Sure, Thomas. Thank you. David, just to give you a sense of the color for our business. For casualty, at the half year, rates continue to meet or exceed trend. We're still around the plus 8% for the overall casualty portfolio at the half year. So we consider that to be slightly better than trend and we're doing well there on pricing.

Property has gone slightly negative, mainly because of the mix, it's a little heavier in the U.S. in the second half -- in the second quarter, slightly negative, although that's coming off of 5, 6, 7 years of double-digit rate increases. So that particular business is performing very, very well. So it's not overly surprising. There's been a slight pricing moderation on the property portfolio.

And then for financial lines business or professional business, it's still negative, but we're starting to see signs that, that's starting to ameliorate, so our sort of thinking going forward is that while it continues to remain negative, it will start to get better as we work through the back half of the year. So all up, we're pretty comfortable in the portfolio and where the pricing is at today.

And so David, I think you had also a question on the retail improvement, and I will comment on Life & Health. So retail improvement, that's across the board in Europe. What you see is very strong price increases, around 5% and -- except in the U.K. And so you do see the benefit of that across the board. But even in the U.K., we see an improvement of our loss ratio in retail. So that's, as I said, really across the Board that we benefit from those higher margins.

On your question of Life & Health. So you're right. It could have been better. So the way it goes is the following. On the Health side, there was a strong focus as we described on improving the margins and pure short-term health. The loss ratio went down by 80 bps between 1H '24 and 1H '25.

But in Life & Health, we also have the protection -- the short-term protection book, which is mainly French. And on this, we saw a deterioration of 70 bps that comes from more sick leaves in France that we have to indemnify. So we need to reprice that book and that will be done for next year. But in the meantime, we have that slight deterioration. When you mix the two, and obviously, the health book is much larger than the protection book, you have that improvement of 40 bps overall.

Thank you to all of you. So we go to the next question.

Okay. Next question is from Will Hardcastle from UBS.

The first question is thinking that you're both a buyer and a seller of reinsurance. And I guess, could you discuss whether you view a softening market in reinsurance is a positive or negative from a group basis? And do you buy retro, perhaps for the reinsurance that can help dampen some impacts?

The second question is regarding the P&C reinvestment yield. It's 4.3% at the half year. It's still well in excess of the average book yield, but what does the 4.3% dilute down to when you consider other assets outside of fixed income? I'm trying to essentially understand that there's still a spread to move up from here?

And the third one is just looking at the low levels of PYD coming out of both Personal Lines and XL, can you discuss if there's anything specific to call out or it's just more good results elsewhere anything specifically on U.S. social inflation.

So thank you, Will, for your 3 questions. I guess they are all for Alban. Maybe a quick comment on the low PYD. You should see that as extremely positive. I mean, they are really low. And I would like to point out that XL, the PYD is 0, so it really shows the very good quality of our results. But Alban will go into more detail.

So as you said, we are both a buyer and seller of reinsurance. To put things in perspective, you see that on an annual basis, XL Re's earnings are around EUR 500 million. But we see more than EUR 2.5 billion of margins through ceded reinsurance. So those 2 are not directly comparable, but that gives a view on the importance of both. So I would say, overall, we will benefit more than we would lose with softer rates.

On the reinvestment yield. So the -- yes, we are investing at a higher rate than the current book yield, and we believe we can continue doing so. And so we are confident in our ability to keep on investing our investment return in P&C and what we call non-VFA business, i.e., investment income that you directly see in your P&L.

There's always a bit of volatility around this coming from PE fund distribution. But the trend is clearly positive on investment income, thanks to our higher investment yield.

And finally, on PYDs, at the end of the day, you saw that we had a good semester on cat, a good semester on discount. We saw absolutely no need to have higher PYDs.

Thank you, Alban. Thanks, Will, for your question. We go to the next one.

Next question is from William Hawkins from KBW.

At the full year, you showed a slide to demonstrate how you are compounding value for shareholders that pointed to growing book value to EUR 24.5 at the end of last year. That figure was EUR 22 at the end of June. So it's back to 2022 levels. I know that's largely FX, but FX is still real. So I'm wondering how -- when you're thinking about value creation, how does building book value fix into the wider framework of the metrics that you highlighted in the presentation?

Second question, please, more numbers based, the EUR 4.8 billion of normalized cap gen in the solvency walk, how much of that was non-life and how much was Life, please? And can you also just give me a bit of an outlook for required capital. The EUR 400 million seemed a bit on the high side of the EUR 600 million for all of last year. So should I just annualize it? Or is there some seasonality?

And then lastly, a very short question. Frederic, in passing, you mentioned that you're already top 3 and 4 direct markets. Can you just tell me what these 4 markets are, please?

Good. So I suggest Frederic, does the first question around the compounding shareholder value. Alban, you take the second and third one around required capital and the split Life, Non-Life of the EUR 4.8 billion. And on the Markets direct, it is France, Belgium and Ireland and Spain as well. So that's the fourth one exactly. So Frederic, on the first question.

Yes. So on the net asset value, what I can tell you is the following. First, as you've noticed, the negative impact we have is the currency impact. And we are a heavily diversified group. So it doesn't worry us at all. I would say, it happens. And I think the -- one of the beauties of AXA is to have this diversification.

Second comment is that, yes, we have at AXA now a higher focus on the growth of the net asset value. We believe that over the long term, this is an important KPI for us, and we will continue to focus on growing the net asset value in the future, despite the short-term currency movements, if I may say.

So on the operating return, the EUR 4.8 million, you have EUR 3.1 billion coming from P&C. You have minus EUR 0.6 million coming from Holdings, which is our Holdings earnings. You obviously have EUR 0.2 million positive coming from Asset Management and the rest comes from Life & Health.

And the increase in required capital, it's true that it's slightly higher than half of last year. I would say it can depend on the mix of business, but we have a good organic growth, and that's a reflection of that.

Thank you, Alban and Frederic. We go to next question.

Next question is from Hadley Cohen from Morgan Stanley.

First question, is around Solvency, please. Can you give us an update of how you're thinking about the, I guess, the pro forma solvency ratio? So we have a 6-point hit from the Prima acquisition. But can you also give us an update on how you're thinking around the effect of the loss of the grandfathered debt from the beginning of next year? And then maybe remind us on how much of that is offset by the solvency review benefit from the beginning of 2027, I guess, particularly in the context of the commissions report a couple of weeks ago. That's my first question.

Second question is more of a clarification point, please. Thanks, Alban, for the sensitivity of the impact of the dollar on earnings. Does that include currencies that are sort of pegged to the dollar, so I'm thinking like Hong Kong dollar and what have you. But on top of that, I guess I'm also cognizant that the euro has been strong against most currencies in the first half of the year. So if currencies stay where they are now for the second half of the year, what's the overall sort of FX impact that we should think about?

Thank you, Hadley, for both questions. Alban, I guess, these are both for you, bearing in mind that on the solvency revision, it's obviously too early to give any indication or concrete indication of what it means because we are talking about 2027.

So on Prima, as we said, it's going to be 4 points at closing. I just want to highlight the fact that this includes not only the impact of the acquisition of the 51% stake, but also the impact of the put and call options that we have over time. So it's the best -- because that's the way accounting works. And so that's the best estimate of the cost that we will have when we exercise those options. That's the first point.

On the grandfathered debt, you know -- you may not know, but the amount of grandfathered debt is EUR 4.3 billion. So you can do the math on the impact. Obviously, we have issued EUR 2 billion of sub debt in May in anticipation of that. And we will keep on managing that grandfathered debt an issuance to mitigate the impact on our solvency.

Last on the Solvency II review. As Thomas said, it's way too early to give a definitive number. So I would repeat what we said in previous periods, which is that overall for every player in the market, it should be a positive impact between plus 10% and plus 20%. That's what we can say at this stage.

On the FX, so what I said on the dollar it does include our operations in Hong Kong that are obviously denominated in the Hong Kong dollar with the PEG. And we have no other operation with the PEG to a dollar. And I cannot give you immediately what the impact would be for the yen, but you have the sensitivities of that in our URD. And Anu very kindly gave that to me a second ago. So I can comment on that. On the yen, a 10% variation is 1% of our underlying earnings group share. Thank you, Anu.

Thank you. But I want to remind you again, these FX movements are happening, but this will not lead to any change in our ambition and target delivery. We will make sure that we will compensate this through operational measures.

Next question is from James Shuck from Citi.

I just wanted to ask first off around the Commercial Lines P&C development. I'm looking at the attritional loss ratio, which kind of ticked up 30 basis points at 1H. I think the planned period was for Commercial Lines attritional loss ratio to remain broadly stable. You're talking about XL being pretty flat and SME getting a bit better. Is that kind of still how you see it? Obviously, XL seems to be deteriorating, and we're seeing rate that slowed in 2Q running about 2.6% at 1H. So claims inflation is probably more than that. So it looks like to me as if the commercialized attritional might be getting worse over the planned period than perhaps you anticipated, but just some comments there would be helpful.

Secondly, on Prima, I mean, if you're able to give me a split of the expense ratio, please, into the -- I suppose, it's commission and non-commission expenses, that would be very helpful. Just keen to understand the size of their expense ratio advantage. I'd imagine the acquisition costs are still quite high. But if they are low, then what's keeping that low?

And then finally, Thomas, I mean, how do you see something like Prima which is a great disruptor you've seen in the sector currently as you just highlighted. What does that say about your existing direct business? Because you're bringing all of these things in-house and you've got massive scale advantage, but then you have this new upstart that comes along and shows you how to do it. So you mentioned you could keep the platforms separate. But is there something that doesn't work in this direct business as part of a large conglomerate?

Very good. Thank you, James. Just a few comments, and then I'll hand over to Alban for the combined ratio question and then on Prima to Frederic. On the combined ratio improvement in general, remember, we always said that we look at P&C commercial and personal lines together when it comes to the improvement. So -- and look, we are not at the end of the plan yet. Our aim is clearly to achieve the improvements that we have put forward.

And secondly, when it comes to Prima, Prima is today mainly in Italy. It has started in Spain and the U.K. But when you look at what we said earlier, the question that William was asking, it is not by coincidence that in 4 markets, we are in the top positions of our direct business where Prima is not so these businesses in France, in Belgium, in Ireland, in Spain, work extremely well. Alban?

Thank you, Thomas. James, so if you remember what we said at the moment of the plan, we said that we would improve our combined ratio in P&C by 200 bps. And part of that was a loss ratio, part of that was expense ratio. So -- and clearly, when we designed our plan a few -- a couple of years ago, we had in mind that the large commercial lines market would probably plateau or slightly deteriorate. So that's what we see in some lines of business today, but we will see also improvement and good momentum in some of the lines. I'm thinking, for instance, of casualty in the U.S.

So when you look at XL, so the XL loss ratio attritional has deteriorated by 80 bps, but 20 bps in that is purely a mix effect because as casualty prices increased more than the rest, casualty takes also a bit more weight in the overall loss ratio. But what we are saying very clearly is that XL again, over the planned period should maintain its underlying earnings in dollar terms because that potential deterioration in the loss ratio can be offset by better investment income, better expenses and growth.

And on the other commercial lines that some of our competitors put in retail, notably the SME, we saw an improvement of 30 bps in the loss ratio, and we see potential for further improvement.

On the expense ratio, before answering your question on the expense ratio, I'd like to enlarge the answer saying that first, our physical distribution channels are doing extremely well. And this is important to have this in mind and especially our agents. And why are they doing extremely well when we hear about the bank branches in difficulties and so on? First, because our agents are entrepreneur, which changes a lot and they do not close at 3:00 in the afternoon, and they work on weekends. And this is -- they provide the right service and the right advice to our customers. So this is about the overall picture about our agents.

Having said that, we believe that we may be at an inflection point and that direct in the coming years will grow more than other distribution channels for many reasons, especially for -- because of new generation, and we see that also in the banking business, as you know.

So what does a direct player offer? A direct player offers lower prices and direct player offers convenience. I mean, this is -- you can buy a motor policy during the night without moving from your home and so on. I mean these are the 2 key critical points and the 2 added values that the direct business brings.

More specifically on the price. So on -- for price-sensitive clients, it is clear that for specific business lines, especially motor, but true also for the home business. With direct, you can offer lower prices, and you can offer lower prices for 2 reasons. The first one is direct players have lower expense ratios. If I look at the expense ratio of Prima, it's about 16%. If I look at the expense ratio of our other direct operations were always below 20%.

If you look at the expense ratio of intermediate retail businesses, I would say it's overall 30%. If you are a market leader, it can be at 28%. But let's say that direct players have a 10-point competitive advantage compared to intermediated players. Then direct players are also more segmented and they are focused on -- they're extremely segmented with the high pricing sophistication, which generalist players cannot be. In other words, of course, we are segmented, but usually, the clients that come to our agents have many different products with us and so on. So you cannot be very segmented. So again, 16% for Prima, highly competitive and probably can still improve. So this is a real disruption.

Thank you, Frederic and Alban. Let's move to the next question.

Next question is from Michael Huttner from Berenberg.

Yes. Fantastic. A big praise, I follow a lot of companies, actually you delivered 8% half year on half year and saying whatever happens, is given some of the companies I cover are beginning to realize now how that is, so that takes me to my first question, which is -- and I hope that you will answer Thomas, since you've been very quite today.

The first question is, clearly, could have said that we'll do 10% EPS growth or 9% or whatever the figure might be because there was a lot of buffers you're building. Can you talk about -- my guess is what you're implicitly thinking is that you're saying, well, I'll invest for growth. I delivered the earnings but I'll invest for growth. I think in the introductory remarks, you stressed the long-term nature of the growth outlook rather than delivering more now. I just wondered whether you can articulate -- if that's right, if you can articulate this a little bit better and also give us some figures on how much you're investing or what the -- yes, what the investment amount is. We can have a figure for the payback, if you like?

The second question is really a silly one and is maybe more for Alban. Alban, you kind of brushed away, say, yes, FX 1.2% or 1% or 2%, I can do it. Where is the fact? Can you -- I mean I'd love to be able to offset. It sounds like EUR 140 million or may be EUR 200 million. I don't think I'll ever be able to do that, but it may be some idea of that.

And then the last question is the pure number one, I apologize for that. 11x, can you unpack what is the ratio of. I still don't know how much you're paying for Prima. I mean I know the EUR 500 million, but the rest is -- I don't know, I've heard EUR 1.1 billion. And then linked to Prima, you only related to the Italian premiums. It looks as if you're throwing away the remaining EUR 200 million. That's it.

Thank you, Michael, for your question. So we do, as you said, Alban will tackle the second one, and we give the third one to Patrick because we are, as you've seen, only buying 51%, which represents the EUR 500 million. The total value is 1.1%, but Patrick will explain a bit more in detail.

So on your first question. For me, it's important that we have -- if you look at the transition of AXA, we have shifted the portfolio to more earnings predictability to more cash-related earnings, and you can see with our earnings power that this has worked very well. We are in the phase now of focusing mainly on organic growth development. And you've also seen, given the fact that all geographies, all lines of business are contributing, we are very well executing on our priorities and have found back to a good growth momentum because if you go back to 2016, we were not at 7% growth of our revenues. We were probably in slight minus territory. And I think this should make us all very proud that we have created this momentum.

Secondly, we are not looking at 3-year plans, and then we don't know what is happening afterwards. For us, the 3-year plan is just an intermediate target that we want to achieve. And as you heard from my comments, we are already looking beyond how does the story continue. And in order to fuel a continuous growth story, you also need to invest. And therefore, we try and balance these investments for growth and the delivery well.

So where do we invest for growth today? And what is already in these numbers? You have a big initiative that is happening in the U.S., where we want to accelerate with XL. We have a big initiative in Asia, in Hong Kong around wealth management. You have a lot of initiatives in Europe around mid-market and other areas. So our numbers do include the investments already for tomorrow. And I think that is also what a responsible company should do to sustain earnings.

We do believe that we have the capacity to deliver our plan in the range of 6% to 8%. And yes, we have enough margin to swallow negative effects because if you remember last year, we had many adverse effects from the discounting, from the OECD tax. And we also managed to coverage because when you look at also our reserve base, when you look at how prudent we are, we have the necessary comfort to deliver our plan and swallow those negative FX impacts.

So Alban, second question around how to offset the EUR 1.2 billion. You can go into detail. And maybe you also do the Prima one because I have probably given half the answer already, and then you can go into a bit more detail.

Thank you, Thomas. The -- so on the FX, obviously, it has an impact. What we are saying is that we feel strongly about our earnings in the first half and that we are confident that we would be able to offset the impact of FX in the second half with the magnitude that we have described during this call with better earnings. That's what we are saying. There is no magic behind that.

On Prima, so when we say it's 11x, that's the sum of 3 things. It's the price that we are paying today for 51%, so EUR 0.5 billion. That's the fact that when we recapture the premiums because as you know, Prima is an MGA, we will have to inject roughly EUR 0.2 billion in the carrier that will do that. And last, that's the best estimate of what we will pay in 4 or 5 years when we exercise the call options discounted to today. And so when I do the sum of all this and compare that to 2 days earnings of Prima, it's 11x.

I think what really matters is what we said earlier on Prima's earnings growth capacity, which is extremely impressive. So the 11x is, from my point of view, more than reasonable.

I think Alban has been extremely clear, but I want to reinforce his point. I'll say it in the following way. Our half year result -- for our half year results, we've done a cautious closing. And this cautious closing makes us confident that we can compensate for future FX negative impacts and that we can continue to invest in our future growth, having in mind the next plan.

Thank you, Michael for your question. Let's move to the next one.

Next question is from Farooq Hanif from JPMorgan.

Just going back to, firstly, the point on casualty in AXA XL. Can you tell us how much of your premium is in casualty in AXA now? And obviously, it wouldn't have grown because of pricing, but are you sort of chasing share there in any form?

Secondly, on the point about your reserving strength. I mean I'm looking at Slide 32 in your appendix and now you can't really use claims reserve ratios. They are a very blunt tool and they don't really always mean anything. But I note that your incurred claims to net earned premium is down at a low point compared to -- I mean back at full year '18 levels. And I was wondering whether we need to read anything into that?

And my last question is on the financial result, the investment margin. So obviously, going back to Will's question, it feels like investment income can improve. But obviously, your financial results is a spread. Having said that, like in the first half, it looked like it was -- that was -- that spread was also stronger. So I was wondering if you think that kind of net between investment income and discount rate unwind going forward will continue to be also growing?

Thank you, Farooq, for your questions. I suggest Scott will take the first one on casualty. And then Alban will talk about the reserving piece, obviously, making sure that we're treating 2019 and prior differently to post 2019. And then, Alban, if you could also talk about investment income at the end. Scott?

Thank you, Thomas. Farooq, on the casualty portfolio for AXA XL Insurance, it's approximately 30% of our business. So -- and it's been pretty steady around that number over the last 4 or 5 years. We're not "chasing" anything here. What we do is we look at each risk and we adequately determine if the pricing is adequate. And if the particular product line, the pricing is adequate, we might write a little bit more of that. But in today's, the mix number has stayed pretty steady over the last 4 or 5 years in terms of casualty relative to the rest of the insurance portfolio.

On the reserving, so exactly as you said, Farooq, looking at the Page 32 is a very growth indication. And especially when you have top line growth of 7% in P&C -- 6%, sorry, in P&C, that brings your ratio down mechanically because your reserves do not grow at the same pace, and that's normal. I would just say that on the casualty at XL, we have obviously very sophisticated ways to look at it. But a very simple way is to say how much IBNR for how much case reserve. And we have significantly increased that ratio over the last 3 years.

And last, on investment income, the -- you're right, I was commenting on investment income, not the spread between investment income and unwind. I think it can, nevertheless, increase, but at a lower pace than investment income itself.

And even if your question was focused on casualty U.S., I'd like to make a comment on casualty outside of the U.S. because we never discuss it. Casualty in Europe and emerging market is an extremely good business. And we have a specific initiative at AXA to grow this business because, again, this is a business which is well priced, good underwriting. And this is very often in many geographies, our most profitable business, so be it in Europe, but also in emerging markets. So we should have this view that there is casualty U.S., and we're happy with our business -- casualty business in the U.S., but -- and we're also happy with the level we underwrite in the U.S., but we also have a business in Europe and emerging markets and casualty, which is extremely good.

Thank you, Farooq. Let's go to the next question.

Next question is from Dominic O'Mahony from BNP Paribas Exane.

I've got one main question and then a couple of details left. Just on the discounting in P&C, flat versus H1 last year. I was really positively surprised by that. And I was expecting quite a deterioration given what's happened to yields. I wonder if you could just unpack how you managed to keep it flat. And the extent to which that's a secular function of business mix, which means it will persist? Or are there some one-off factors in there, which means that we should look through a particular print?

More detailed question. We've talked quite a lot about currency effects on the financials. I'm really just wondering whether you observed any change in the actual business sales. So for instance, is there any sign that appetite for U.S. dollar-denominated policies in Asian markets that customers are wary of those products in light of the currency volatility?

And then finally, Alban, I think you said, correct me if I'm wrong, that U.K. retail margins improved in the period versus first half '24. Clearly, the pricing dynamic is weaker in the U.K., as you mentioned, versus Continental Europe. What's driving that improvement in the performance?

Thank you, Dominic, for your questions. So on the discounting P&C, I suggest, Alban, will talk about this. When it comes to the currency, I think we need to differentiate 2 types of business. One is obviously the commercial business. Scott should talk about that. And the other one is more the life insurance business in Asian markets, in particular in Japan, because that's where you had the phenomenon of U.S. dollar-denominated life insurance.

On this one, we see that demand has actually weakened for it for a couple of reasons. Number one, the interest rate situation in Japan has changed, even though it hasn't dramatically changed. And secondly, some tax advantages on what's called COLI products in Japan has changed which has driven more demand towards yen-denominated policies.

And the same is true if you have, for example, Mexico, where you have some health policies in U.S. dollar because the delta between health costs in Mexico and the U.S. has certainly gone apart. These products are less offered and therefore less salt.

And I think then on the third piece around U.K. retail. Patrick will talk about it. When Alban was referring to U.K. retail, he was referring to Health earlier. But what is important is that maybe Patrick gives a little more detail around health, motor and household because the trends are relatively different. So Alban, on the first one, discounting factor.

Thank you, Thomas. Dominic, on the discounting, so we don't manage the discount effect because it's simply mechanical and not manageable. So what happened? It's a mix of 2 things, one that everyone has in mind it's a function of the discount rate, which is the market rate. But then there is something else, which is also the amount of unpaid claims for the business written in this first half. So it's a question of business mix.

If you say write more casualty, more financial lines, for which typically the amount of claims paid in the current year is low, you will have more unpaid claims and therefore, more discount benefit. I hope that clarifies.

Thank you, Alban. on the second question, Scott, on the currency effects, does the -- do you see anything in commercial when it comes to programs and so on that people switch currencies?

Sure. Thank you, Thomas. Dominic, we're not seeing any changes relative to the denomination in our policies. And I just want to be clear, when we underwrite, we have a very clear rule that your limits that you buy have to match the premium that you pay in the currency in a sense or if you're buying U.S. limits, for example, a property policy, the premium is also paid in U.S. dollars. So we always match the currency of the exposure that we're insuring relative to the premium payment.

And generally speaking, the clients aren't really focused on that piece of FX. It's just making sure you're ensured to value in whatever country that you're operating in. So again, we're not seeing -- and it's not typical, when we see currency movements, we really don't usually see movements of the currency within our policies.

Thank you, Scott. And then Patrick, on U.K. Retail, if you could then differentiate as wealth, health, motor and non-motor?

Absolutely. Thanks, Dominic, for the question. So I will start with U.K. health and give you a little bit the dynamics and the reason, behind a very, very positive development. And we have a massive increase of our earnings on the U.K. health, above 170% versus half year last year. And if you remember, in '23, we told you, no stone would be unturned to bring this book back to its profitability. It's a great business, got 20% market share.

And that's exactly what we did. No stones were unturned. We've put in very strong price increases. We've sophisticated our pricing. We've enhanced our ability to price more frequently and very, very, very importantly, we've totally reshuffled our claims activities, which means we have a steering to our preferred networks that move from 45% and of 23% to now 80%. We invested heavily in fraud, waste and abuse.

And very importantly, we acquired a small company that helps us developing medical pathways, i.e. medical protocols that we put in place to make sure that on one hand, you have the best medical outcome for the customers, but there is also a cost efficiency process that enables to remove the waste.

And you know that in Health, 30% globally, I'm not talking here about AXA, but 30% of all spending is wasted. You add to this some expense reduction efforts that we're doing through AI and gen AI in particular, in our call centers and you add up to this result with a very significant improvement in the combined ratio of around 5 points.

Very importantly, I said it's a great business. We believe, there is still more to be earned in the second half of '25 and get the full impact of the price increase we had in '24, but also the impact of the pricing increase that we've put in '25 from 8% to 15% pending the lines.

We see a top line rebound, I'm very pleased with that. We have a top line growth of 6%, and we feel this is a good momentum that will continue, and we will continue to be totally obsessed with claims and get very strong benefit from that perspective. So that's for the Health bit.

On the U.K. Retail, you're right. You talked about, I believe, in your question, the market softening. So it's true the market softens around 5% in the first half of the year. We are very clear on what we need to do in the U.K., which is to prioritize profitability and customer retention. And that's what we're doing.

So I'm super pleased to see on one end, that if you look back to 2023, combined ratio improved more than 17 points. And if you look half year versus half year, it's an improvement of 4 points. And this is almost all driven by attritional, which means greater quality, obviously, of the portfolio. So that's on one hand, the profitability.

On the other hand, we're regaining net new customers. So we're growing our customer base. This is stemming from impact the new deal we have with Lloyds Banking Group, which is a leading banking group in the U.K. with 28 million customers. So we feel there's a lot of potential to be captured. And we're very interested also by that partnership because its data reach enables us to sophisticate our pricing and to select well the risks.

Back from the turnaround things that I had explained in previous sessions. Again, here, it has been a totally reshuffling of our pricing capabilities from the pricing sophistication to the pricing tools, i.e., our ability to have full deployment of our models in rating engines and sophistication between linear and nonlinear models. I wouldn't get in that detail.

And again, claims huge effort from fraud detection to procurement to also reinternalization of our intervision team. So if you look at our rate of capture from that perspective, it has moved from 16% to 25%. So we've really moved the needle on what makes the technical excellence, and we'll keep being very, very disciplined in prioritizing profitability, customer retention and fueling the top line through that very interesting deal we have with Lloyds.

Thank you, Patrick. We take one last question. I think Andrew Crean is next in line. If there are any further questions beyond Andrew's questions, our team is obviously ready to answer all of them. but the time is advanced. So Andrew, a last question.

Thomas, a couple of questions. Firstly, you talked in your opening remarks about improving the ambition and the combined ratio that you want out of Health beyond this plan. Could you enumerate a little bit as to how big an improvement you're targeting?

Secondly, in terms of XL Insurance, you quoted the rates in both casualty and property. But I wanted to understand what the rate movement was in the U.S. because half XL Insurance business is outside the States. So could you talk a little bit about rate in the States in casualty and property and whether you see that as -- are you building margin, holding margin or losing margin?

Thank you, Andrew, for your 2 questions. I suggest Scott will answer the second question. On the first question, what I said is, and this goes very much also back to the question we had around Michael's first question. When we think about the Health business, we are looking at it in the long term, not only given this plan, what we have seen in many markets, notably in Spain, Mexico, Egypt and others that if you do partner or operate in Health with medical facilities, so clinics that -- not hospitals, but clinics that handle 70%, 80% of the base load, you can have a very strong influence on the one hand, around your claims cost because you make sure that you help the customer from very early on to find the right doctor in the medical jungles that do exist today.

And secondly, you can also reduce fraud, waste and abuse to this. And we have decided to continue this investment plan and to continue investing in those clinic facilities in order to make sure that in all of our markets, where this applies and where we have a positive impact on Health, and it's mainly in markets where you have a high, what we call, out-of-pocket pay, so where there is no sufficient state system and the customer has to pay a certain amount him or herself.

And so when we talk about how big is the improvement, I guess I will have to defer you until the end of next year when we launch our next plan, but clearly, Health is an important business for us and a strategic business, and you will see in the next plan an ambition around growth and profit improvement around this based on the strategy of more assets in vertical integration.

Scott, on your question around the insurance -- sorry, the rates in the U.S. on casualty and property and how is rate and margin movement.

Sure. Thank you, Thomas. Andrew, to give you a little more color on the difference, and you understand that a lot of our business written outside the United States can have obviously U.S. exposures to it, and we would price that business, obviously, consideration of the U.S. exposures that they have.

But to give you a perspective, for example, excess casualty for us from a pricing standpoint is up around 15% for -- in the U.S. And that compares, for example, with our essentially non-U.S.-generated casualty business of around 6 and change. So that gives you a little perspective of those differences.

In terms of property, it's a little closer. The all-up portfolio, we talked about being slightly negative of a couple of points. The U.S., for the first half year, is around minus 5%. So it's a little bit more than what we're seeing in the non-U.S. business, but that business was heavily skewed to the first quarter. So the market has moved a little bit since then. So it's not surprising that the U.S. book, which is more of a second quarter book than the first quarter would be a little bit lower on the rate number.

Thank you, Scott. Thank you for your participation and all your questions. As I said, if there are questions remaining, our team is there to answer all of the remaining questions. In the meantime, I wish you a great summer, and hope to see you soon. Thank you very much.