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FULL YEAR 2017 EARNINGS APRIL 2018 Ceci est un document - - PowerPoint PPT Presentation

La Mondiale FULL YEAR 2017 EARNINGS APRIL 2018 Ceci est un document exclusivement rserv linterne qui ne peut engager la responsabilit dAG2R LA MONDIALE Cautionary note Certain statements contained herein may be forward-looking


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SLIDE 1

Ceci est un document exclusivement réservé à l’interne qui ne peut engager la responsabilité d’AG2R LA MONDIALE

La Mondiale

FULL YEAR 2017 EARNINGS

APRIL 2018

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SLIDE 2

2

Cautionary note

Certain statements contained herein may be forward-looking statements including, but not limited to, statements that are predictions of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and La Mondiale’s plan and

  • bjectives to differ materially from those expressed or implied in the forward

looking statements. Please refer to “La Mondiale Rapport Financier 2017” (*) for a description of certain important factors, risks and uncertainties that may affect La Mondiale’s business and/or results of operations. La Mondiale undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. Unless otherwise specified, financial statements are calculated in accordance with IFRS as adopted by the European Union. SGAM Solvency 2 figures related to FY 2017 are estimated.

La Mondiale FY 2017 earnings

(*) available at the end of May 2018

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SLIDE 3

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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SLIDE 4

4

Executive summary (SGAM, as of 12/31/2017)

Key player in the French Life insurance market

#2 in Supplementary pension #3 in Health Insurance #4 in Protection #10 in Savings

Robust balance sheet and strong solvency

224% S2 RATIO SGAM AG2R LA MONDIALE

+11% compared to FY2016

277% S2 RATIO LA MONDIALE (solo) – debt issuer

+21% compared to FY2016

€6,1 bn IFRS Equity capital (part of group)

+€0,5bn compared to FY16 +86% on 5 years

€2,7 bn Total amount of subordinated debts €76 mn Issuance of mutual certificates (unrestricted Tier 1)

Rated A- / stable

Confirmed by Standard & Poor’s in October 2017

2017 Product mix (premiums) Diversified & strong business model

€361 mn Strong FY2017 net income €9,8 bn

Controlled decrease of premiums on Life General Account

37%/63% Premium UL** / GA* mix

above the market 28%/72%

32%/68% Liabilities UL** / GA* mix

above the market 21%/79%

Sound asset allocation & risk management

4,33%

High level of policyholder

  • f reserves

surplus reserve with 2,3€bn Less than 20% of investments rated BBB+ or below (lower than the market)

SGAM : french prudential insurance group (*) : General Account are high capital need products, (**) : Unit Linked are low capital need products

Protection & Health 37% 63% Savings & Pensions

La Mondiale FY 2017 earnings

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SLIDE 5

5

Highlights

La Mondiale has successively issued two subordinated debts in USD Creation of a dedicated property company AG2R LA MONDIALE and MATMUT announced on November 28th to enter into exclusive negotiation to study the

  • pportunity to build a new group

Rationale of the operation :

  • Larger and comprehensive group on the French

market

  • Diversification effects
  • Cross-selling on existing customers

Organizational project :

Umbrella SGAM

SGAPS AG2R LA MONDIALE SGAM LA MONDIALE MATMUT

MATMUT and

  • ther entities

LA MONDIALE and its subsidaries

To be approved by the General Meetings of May / June 2018, and in case effective on January 1, 2019 Issuance of two redeemable subordinated notes 30NC10 :

  • Private issue of $400 million on December 19, 2017,

completed in Asia

  • Public issue of $310 million on January 12, 2018,

subscribed mainly by European investors

  • Called AGLM IMMO
  • Aims to consolidate the real estate investments of

the members of the Sgam

  • Should hold after asset transfers more than €4.5bn
  • f assets

La Mondiale FY 2017 earnings

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SLIDE 6

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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SLIDE 7

AG2R LA MONDIALE organization

Full financial solidarity in proportion of capital surplus

Savings and Pensions Protection and Health

2017 premiums: €6.2bn 2017 premiums: €3.6bn 2017 premiums: €19.3bn La Mondiale: €2.1bn La Mondiale Partenaire: €1.6bn La Mondiale Europartner: €1.7bn Arial CNP assurances: €0.7bn AG2R Réunica Prévoyance ViaSanté Mutuelle Réunica Mutuelle Prima AG.Mut AG2R Retraite Agirc AG2R Retraite Arrco Servicing on behalf

  • f the public pension system

for employees

LA MONDIALE

Common sharing of resources and governance

  • A Group collecting €29,0bn

premium in 2017

  • SGAM with €6.1bn equity

SGAM AG2R LA MONDIALE

Mandatory Additional Pension Scheme

7

SGAPS AG2R LA MONDIALE

  • Combination of mutual or non

capitalistic entities with specific governance

  • SGAM and SGAPS are specific group structures for

mutual and assimilated entities, allowing combination and sharing of resources

  • As of January 1st 2018, SGAPS has also allowed full

prudential recognition

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SLIDE 8

AG2R LA MONDIALE financial solidarity

SGAM AG2R LA MONDIALE

La Mondiale

(debt issuer) 60%* 100% 100%

Financial solidarity

* consolidated through use of the equity method as of 1st of April 2016 8 SCR ratio

  • r

MCR ratio

Target 115% 125%

2 levels of financial solidarity :

  • The 1rst level between the members of SGAPS
  • The 2nd level between SGAPS and La Mondiale

The financial solidarity process is the same in the 1rst and the 2nd level : if an entity solvency ratio (SCR or MCR) falls below 110%, other entities will provide extra capital in order to restore 115% solvency ratio, in proportion of their capital surplus and within the limits of their own solvency.

1rst level of financial solidarity : between all affiliates into SGAPS

Entity 1 Entity 2 Entity i Entity 3 … Financial solidarity Entity 4

2nd level of financial solidarity : between SGAPS and La Mondiale

Trigger 110% Financial solidarity in proportion of capital surplus

Financial solidarity function of solvency ratios Financial solidarity - description

La Mondiale FY 2017 earnings

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SLIDE 9

1 285 1 161

  • 98

1 163 1 038 986 FY 2015 FY 2016 FY 2017

9

Business activity (La Mondiale)

G/A 71% 71% 63% UL 29% 29% 37%

Insurance lapse ratio Premiums (in € mn) Net inflows (including arbitrages, in € mn)

* France (Source : Fédération Française de l’Assurance)

6,2% 5,9% 6,8%

FY 2015 FY 2016 FY 2017

Premiums : -6,1% compared to FY 2016, due to : Controlled decrease GA exposure and focus on UL Savings : -21,5% voluntary decrease in General Account Pension : +29,2% mainly due to exceptional events on Group Supplementary Pension with no impact on the net inflows Lapse : Slight increase of the insurance claims ratio (in line with the French market), after two years at historical low Net inflows : Controlled GA net inflows in a low interest rate environment (-60% on total net inflows compared to FY2016) 6 790 6 611 6 205

4 753 4 497 3 529 1 855 1 960 2 532

182 154 144

FY 2015 FY 2016 FY 2017

Total Savings Pension Others General Account Unit Linked La Mondiale FY 2017 earnings

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10

Core businesses’ financial structure (La Mondiale)

Liabilities by products €79,8bn Outstanding liabilities €79,8bn New business breakdown (APE) €444mn

* Source : Fédération Française de l’Assurance

Retail Savings 6% Private Wealth Management 55% Group Pension 24% Individual Pension 14% Protection 1%

General account 68% €54.6bn Unit Linked 32% €25.2bn

Retail Savings 2% Private Wealth Management 66% Group Pension 10% Individual Pension 21% Protection 1%

Liabilities : global growth by +5% General account : +2%, compared to less than 1% for the French market* Unit linked : +11%, compared to 10% for the French market* In 2017 UL liabilities represent 32% of total liabilities (compared to 21% for the market*) New Business (APE) : decline by -10% compared to FY2016, but limited to -3% taking into account exceptional elements in group pension

La Mondiale FY 2017 earnings

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SLIDE 11

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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SLIDE 12

0,17 0,23 0,43 0,36 0,71 0,68 0,83 1,54 1,74 2,26

0,58% 0,73% 1,20% 0,95% 1,75% 1,58% 1,76% 3,09% 3,36% 4,33%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Profit-sharing reserve (€bn) in % of insurance liabilities 12

A strong financial performance (LA MONDIALE)

Return on equity Consolidated net results (in €mn) Group equity capital (in €mn) 4,7% 12,2% 19,4% 11,1% 13,9% 8,1% 9,0% 8,4% 9,3% 8,8%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Consolidated Policyholder Surplus Reserves

+ €355mn

3 508 3 863 +308

  • 13

+57 +3 2 000 2 500 3 000 3 500 4 000

2016 FY 2017 net income Fair value adjustment Mutual certificates Other impacts 2017

+10% compared to FY2016 x3 compared to 10 years ago 2017 net result : €308mn Increase of policyholder surplus reserve by €520 mn

50 100 150 200 250 300 350 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 La Mondiale FY 2017 earnings

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SLIDE 13

13

Continuous decrease of guaranteed rates

The average guaranteed rate decrease from 0.84% in 2016 to 0.79% in 2017.

€ bn La Mondiale FY 2017 earnings

2,1% 1,8% 1,5% 1,3% 0,84% 0,79% 10 20 30 40 50 60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0% guaranteed btw 0% and 1% btw 1% and 2.5% btw 2.5% and 3.5% btw 3.5% and 4.5% higher than 4.5% Average guaranteed rate

Liabilities with a gross guaranteed rate above 3.5%

35% 35% 9% 9%

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14

Savings and pensions investment spreads

+241 bps +179 bps

Inforce business New business in 2017

Below zero long term guaranteed rate, consistent with market conditions

  • Buffer of €1.3bn above minimum guaranteed rate
  • Average reserves of €54.2bn

2.15% net of fees

* Weighted average based on statutory accounts

Yield on total Savings and Pensions assets base*

Savings and Pensions average guaranteed rate (mandatory) Profit sharing

Yield on Savings and Pensions fixed income assets

Savings and Pensions average guaranteed rate (1rst & 2nd years) Savings and Pensions average guaranteed rate (after 2nd year)

La Mondiale FY 2017 earnings

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SLIDE 15

3,69% 3,40% 3,25% 3,13% 2,84% 2,64% 2,20% 2,15% 3,40% 3,00% 2,91% 2,80% 2,54% 2,27% 1,93% 1,84%

1,4% 1,6% 1,8% 2,0% 2,2% 2,4% 2,6% 2,8% 3,0% 3,2% 3,4% 3,6% 3,8%

2010 2011 2012 2013 2014 2015 2016 2017

Rémunération nette moyenne périmètre La Mondiale Rémunération nette des supports euros marché (FFA)

15

+29cts +31cts

  • 9cts
  • 5cts
  • 44cts
  • 34cts

+37cts

A credited rate in line with the interest rate environment, still above the French market

Net average credited rate La Mondiale Net average credited rate French market (FFA)

La Mondiale FY 2017 earnings

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SLIDE 16

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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SLIDE 17

17

Assets : global growth by +6.6% General account : +6.6% Unit linked : + 6.9% Assets under management have grown significantly over the last decade at an average annual growth rate of +10% since 2006 Fixed income represents 83% of General account in 2017 vs 72% in 2006

General account assets allocation €68.5bn Outstanding assets €94bn Historical asset allocation General Account

FY 2017 asset allocation

(*)including repo (sale and repurchase agreement)

Fixed Income (*) € 59,6 bn 87% Equities € 5.8 bn 8% Properties (**) € 3 bn 4% Others € 0,2 bn 0%

General account assets € 68,5 bn 73% Unit linked assets € 25,5 bn 27%

0 bn 5 bn 10 bn 15 bn 20 bn 25 bn 30 bn 35 bn 40 bn 45 bn 50 bn 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Property Equity Fixed Income

La Mondiale FY 2017 earnings

(**) IFRS figures – total value : €4.4bn

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AAA 12% AA+ 3% AA 30% AA- 6% A+ 8% A 13% A- 8% BBB+ 11% Others 9%

18

Total fixed income exposure is at €54,4bn (excluding mutual funds and repo) Limited exposure to risky investments with as less than 23% of the investments currently rated BBB+ or below An estimated 15-year liabilities duration, but the liabilities sensitivity is however far lower and on line with the fixed income duration (7.3). This is a key strategic element of our asset management policy.

FY 2017 fixed income allocation

Credit Exposure by Credit Rating Portfolio by maturity band Credit Exposure by Issuer Type A 29% A 29% BBB 11% BBB 11% AA 39% AA 39% AAA 12% AAA 12%

Sovereign 28% Guaranteed government bonds 3% Supra / Agencies 9% Covered bonds 10% Senior Financials 16% Sub Financials 5% Other corporates 29%

0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% < 1 year > 1 year to 3 years > 3 to 5 years > 5 to 7 years > 7 to 10 years > 10 to 30 years La Mondiale FY 2017 earnings

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19

FY 2017 fixed income allocation – Sovereign exposure

Sovereign bond exposure Peripheral countries exposure

Total Sovereign exposure is at €15.4bn Sovereign exposure is 28% of total fixed income exposure

France 68% Peripheral 14% Belgium 9% Austria 3% Others 6%

Spain € 1 038mn 48% Ireland € 526mn 24% Italy € 459mn 21% Portugal € 159mn 7% Greece € 0mn 0%

Total Sovereign on Peripheral countries exposure is at €2.2bn Peripheral countries exposure is 14% of this sovereign bucket, hence only 3.9% of the total investments High level of unrealized gains (€372mn), that allows credit shock absorption

La Mondiale FY 2017 earnings

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20

FY 2017 equity investment allocation

Total Equities exposure is €5.8bn, including €1.3bn through mutual funds 2017 performance at 12.5%, after 6.5% in 2016. An Equity portfolio well diversified by geography and sector A focus on large liquid Equity stocks traded on the main exchange markets

Equity investment performance Geographical breakdown (excl. mutual funds) Breakdown by sector

France 65% U.K. 10% Germany 8% Switzerland 8% Other 9%

0% 5% 10% 15% 20% 25% Technology Local Government. TMT Commodities Services Oil and Gas Health Industry Financial Instit. Consumer Goods

La Mondiale Equity DJ Stoxx 50

La Mondiale FY 2017 earnings

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21

FY 2017 property allocation

Geographic breakdown (market value) Annual revenue (€ per sq.m) Total performance

  • 5,0%

0,0% 5,0% 10,0% 15,0% 20,0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 La Mondiale Property IPD (french market) 50 100 150 200 250 300 350 400 450 500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total Property exposure is at €3,0bn (fair value : €4,4bn) La Mondiale property assets represent 518 400 sq.m. and are mainly offices located in the center of or in Western Paris, i.e. only Prime Real Estate Good rental market, especially on all recently delivered surfaces, to post a very good vacancy rate below 5% Exceptional IPD index outperformances of 2015 and 2016 explained by the strong value creation on the deliveries of the restructured buildings

La Mondiale FY 2017 earnings

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SLIDE 22

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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SLIDE 23

Solvency 2 – SCR coverage ratio

La Mondiale solvency ratio SGAM solvency ratio Key Sensitivities *

The 2017 Solvency 2 ratios increase by more than 20pts for La Mondiale at 277%, and more than 10pts for Sgam at 224%. The amount of the transitional measure on technical provision is €3.6bn for La Mondiale and €3.9bn for Sgam.

+19pts

  • 20pts

+5pts Interest rate -50bps Interest rate +50bps Equity market -15% UL/GA mix (+5% UL, ie 38% instead of 33%)

  • 9bps
  • 9pts

In €bn

* Based on HY2017 calculation

23

Eligible

  • wn

funds bn 10,6 €

SCR bn 5,0 € 2016

Eligible

  • wn

funds

bn 11,6 €

SCR bn 5,2 € 2017 213% 224% Eligible

  • wn

funds bn 8,7 € SCR bn 3,4 € 2016 Eligible

  • wn

funds bn 9,6 € SCR bn 3,5 € 2017 277% 256%

(estimated) La Mondiale FY 2017 earnings

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SLIDE 24

457 768 197 10 191 499 340 256 5,05% 2,56%* 6,75% 1,94% 3,00% 3,38%* 7,07%* 2,58%* 24

Subordinated redemption profile

1st call date breakdown (in €mn)

BoY2017 Subordinated Financial debts : €2,122mn

  • € 457 mn of perpetual debt denominated in USD, with a 1st call option in 2019, restricted T1 until 2026

Fully hedged until 2019

  • € 191 mn of EUR dated debt with a 1st call option in 2024, Tier2 until 2026
  • € 768 mn of EUR perpetual debt, with a 1st call option in 2025, restricted Tier1 until 2026, Tier2 after
  • € 207 mn (197+10) of EUR perpetual debts, mostly outstanding amounts remaining from past liability

management operations, Restricted Tier1 until 2026

  • € 499 mn ($ 530 mn) of Reset Subordinated Notes, with a 1st call option in 2027

EoY2017 and BoY2018 Operations : €596mn Issuance of two redeemable subordinated notes 30NC10 : € 340 mn ($400 mn) with a 1st call option in December 2027 and € 256 mn ($310 mn) with a 1st call option in January 2028

* : euro equivalent issuance rate, after hedging La Mondiale FY 2017 earnings

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25

Interest coverage and Leverage

Interest coverage SGAM Leverage SGAM

Interest coverage and Leverage remain in a satisfying range. The issuance of $710m EoY2017/BoY2018, slightly superior to the debt of 2013, has a slight negative impact on the 2018 ratios. That would disappear from 2019 in case of call exercise of the 2013 debt.

NB : IFRS leverage doesn’t take into account €146mn of Super Subordinated Debts La Mondiale FY 2017 earnings

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SLIDE 26

Contents

  • 3. A strong business model
  • 4. Invested assets
  • 6. Appendix
  • 2. Group profile & business activity
  • 5. Solvency & capital management
  • 1. Executive summary
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27

Overview of La Mondiale Balance sheet

(consolidated, IFRS)

€m TOTAL ASSETS 88 719 94 242 98 357 4,4% Intangible assets 68 63 62

  • 1,4%
  • w. Goodwill

56 54 52

  • 3,1%

Insurance investments 63 898 68 086 68 495 0,6% Unit Linked investments 21 360 22 829 25 498 11,7% Others assets 3 096 2 801 3 164 12,9% Cash and cash equivalent 298 462 1 138 146,3% FY 2017 %Change FY 2017/ FY 2016 FY 2016 FY 2015 €m TOTAL LIABILITIES 88 719 94 242 98 357 4,4% Equity Group Share 3 104 3 498 3 848 10,0% Minority Interests 9 10 14 50,0% Total Equity 3 114 3 508 3 863 10,1% Financing debt 1 599 1 590 2 304 44,9% Insurance and financial liabilities 77 685 82 224 85 472 4,0% Other liabilities 6 321 6 920 6 717

  • 2,9%

FY 2015 FY 2017 %Change FY 2017/ FY 2016 FY 2016

La Mondiale FY 2017 earnings

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28

Overview of La Mondiale P&L account

(consolidated, IFRS)

€m Revenue 6 790 6 611 6 205

  • 6,1%

Financial Products 3 431 2 381 2 549 7,1% Others 798 839 1 625 93,6% Current operating income 11 018 9 831 10 379 5,6% Current operating expenses

  • 10 653
  • 9 470
  • 9 999

5,6% Operating Income 365 360 380 5,7% CONSOLIDATED NET RESULT 251 288 308 6,9%

  • .w Group share

251 288 308 6,9%

  • .w Minority Interest

FY 2015 FY 2016 FY 2017 %Change FY 2017/ FY 2016

La Mondiale FY 2017 earnings

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29

Private wealth and retail savings

Premiums (in €mn) Liabilities (in €mn) La Mondiale premiums growth vs Market

Premiums : drop by -21,5% Private wealth management savings : -22,4% Retail savings : -10,2% Part of UL : 48% (+14% compared to FY2016, +8% for the French market) 63% through domestic partnerships, 20% via international partnerships, 13% via direct distribution channel and 4% via brokers In a low interest rates environment, controlled decrease of premiums especially in private wealth management savings for G/A contracts Liabilities : CAGR** of 6,6% since 2007

Index base 100 = 2008

** CAGR : Compound Annual Growth Rate

* France + Luxembourg (Source : Fédération Française de l’Assurance and Commissariat aux assurances Luxembourg)

4 408 4 171 3 237

345 325 292

4 753 4 497 3 529

FY 2015 FY 2016 FY 2017

Private Wealth Management Retail Savings 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 55 000 20072008200920102011201220132014201520162017 La Mondiale FY 2017 earnings

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Individual retirement plans

Premiums : Drop by -2% in 2017 Slight underperformance in Self employed retirement plans -6% Outperformance in Popular retirement savings plan (PERP) +19% Liabilities : Increase by +8,9% in 2017 CAGR of 11,8% since 2007 Market shares : #1 in 2016 (#2 in 2015)

Self employed retirement plans market share in 2016

French Market Total estimated premiums : 2.7 €bn

Premiums (in €mn) Liabilities (in €mn)

* France (Source : Fédération Française de l’Assurance)

869 882 864

FY 2015 FY 2016 FY 2017

2 000 4 000 6 000 8 000 10 000 12 000 20072008200920102011201220132014201520162017 La Mondiale FY 2017 earnings

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31

Group supplementary pension

Group supplementary pension market share in 2015**

French Market Total estimated premiums : €5.6bn

Premiums (in €mn) Liabilities (in €mn)

***

Premiums : Growth by +17,7% in 2017, excluding exceptional elements Growth by +54,8% in 2017, including exceptional elements Liabilities : Increase by +6,7% in 2017 CAGR of 6,6% since 2007

* France (Source : Fédération Française de l’Assurance) ** 2016 non available *** without L.441

987 1 078 1 669

FY 2015 FY 2016 FY 2017

4 000 8 000 12 000 16 000 20 000 24 000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 La Mondiale FY 2017 earnings

400 1269

Exceptional

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SLIDE 32

SGAM AG2R LA MONDIALE long term ratings A- / stable

32

  • SGAM AG2R LA MONDIALE and its 2 affiliates La Mondiale and AG2R Réunica

Prévoyance have the same rating;

  • AG2R LA MONDIALE (AG2R LM) has a diversified product offer backed by multi-branch

approach;

  • La Mondiale (AG2R LM’s core entity) has a strong brand and leading positions in high-

net-worth individual savings, self-employed, and group pension contract segments;

  • AG2R LM is gradually strengthening its capital in the face of ongoing pressure from low

rates through : its results, the successful issuance of a new form of hybrid debt in January 2017, and the gradual increase unit-linked life policies;

  • AG2R LM has carried out the work to become a prudential group within the meaning of

Solvency 2, on January 1, 2018. The strengthening of financial solidarity among the members of the Group is particularly highlighted;

  • AG2R LM reaffirm its strong competitive position in its markets. Its risk management,

management and governance are satisfactory. On october 5, 2017 Standard & Poor’s maintained its long-term counterparty credit and financial strength ratings on SGAM AG2R LA MONDIALE at A-. The stable outlook on AG2R LA MONDIALE's subgroups (AG2R Réunica Prévoyance and La Mondiale) indicates S&P expect both entities to become a full prudentially regulated group under Solvency 2 and gradually strengthen its capitalization.

A-, outlook stable

La Mondiale FY 2017 earnings

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33

SCR breakdown and Own funds tiering (La Mondiale)

SCR

(as of 12/31/2017)

15% of diversification benefit (1) 15% of diversification benefit (1)

(1) Diversification benefit = (sum of net SCR excluding Operational risk SCR - net BSCR) / sum of net SCR excluding Operational risk SCR Basic Own Funds 3% Reconciliation reserve 81% Subordinated liabilities (Restricted T1) 17%

Breakdown of Tier 1

Tier 1 8 977 Tier 2 645

2017 Own Funds (M€)

Tier 1 93% Tier 2 7%

100% of own funds

Tier 1 258% Tier 2 19%

277% of SCR Own funds tiering

La Mondiale FY 2017 earnings

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34

André Renaudin Chief Executive Officer David Simon Deputy Chief Executive Officer (Finances, Investments, Risks) Benoit Courmont Chief Financial & Risk Officer benoit.courmont@ag2rlamondiale.fr +33 1 76 60 87 38 Jean-Louis Charles Chief Investment Officer jean-louis.charles@ag2rlamondiale.fr +33 1 76 60 99 91 Marie Deboosère Analysis & Financial Information marie.deboosere@ag2rlamondiale.fr +33 1 76 60 87 36

Contact details

Investor Relations - Contact: infosfinancieres@ag2rlamondiale.fr

AG2R LA MONDIALE 104-110, boulevard Haussmann, 75008 Paris - France http://www.ag2rlamondiale.fr

La Mondiale FY 2017 earnings