GLOBALIZATION:

New Cultures
New Territories
Change Management

The Insurer’s view

FERMA – 11 October 2006 – Jean-Paul RIGNAULT

Globalization

Globalization brings Efficiency and Prosperity:

Powerful interaction of financial liberalization,
information technology and overseas markets
Investments in business development to attract
new clients segments (AXA China Region), highly
skilled human resources and / or attractive labor
cost (AXA Business Services, Bangalore)

But it also carries “news” risks to be managed at the

international, regional and domestic levels

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 2

 Globalization : an example
Shipbuilding order book by type of ship

in million DWT

250 219.5 230.6 6.5

3.6

177.0
200 53.0

13.9
150
112.6 112.3 115.6
67.9

100

85.7
50

0
2000 2001 2002 2003 2004 2005

Tankers >=1,000dwt Bulk Carriers >=10,000dwt LNG/LPG Carriers

Container Vessels >=5,000dwt Others (of which Passenger Vessels >=1,000grt) General cargo (>= 300gt)

Source: Indicators issued from various sources such as ISL Bremen for World fleet and trading figures
FERMA – 11 October 2006 – Jean-Paul RIGNAULT 3
and Clarkson Research Studies for shipbuilding and scrapped vessels.
 Globalization : an example
Shipbuilding share of deliveries
50% Japan
45%
40%
% CGT Deliveries

35%
30% Europe
25%
20% Others
15%
10% Korea
5% China
0%
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
Source: Clarkson Research Studies for shipbuilding and scrapped vessels. FERMA – 11 October 2006 – Jean-Paul RIGNAULT 4
 • New modern and well protected
Globalization : an example plants (CAR / EAR, Property, …)
Marine insurance market • Increased volumes (tiv / property,
sales / liability, …)

A sustained development in line with the international trade fast growth

worldwide premium income
Billions USD
20

18

16

14

12

10

0
1999 2000 2001 2002 2003 2004 2005

Hull, Cargo, Liability incl. P&I, Energy Source: IUMI

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 5
Globalization
Every-day challenges for you and us

■ New Business Opportunities

■ Evolution in Business Model
New Territories
New Customers
New Cultures
■ Still increasing New Risks…

Management of Complexity

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 6

 Globalization
AXA’s close and qualified approach
For our Clients
Quality of the Relationship
Quality of the Advice
Solution
Strong Cultural Delivery Strong
Change Differentiation in
Clients’ Mindset

For our Employees

and Sales Forces
For our Shareholders
Motivation Close
Career Management Reward
Empowerment & Qualified Trust
Recognition Openness

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 7

Adjustment or confirmation in business model

■ Knowledge of local markets’ regulations / rules /

specificities
A properly organized and managed dense
International Network (answering Clients’ Close
needs in more than 80 countries - China)

■ Empowered and integrated decision centers

supported by
Universal
Homogeneous Underwriting policy (by
cross-border lines of business) Clear
Consistent Quality of Services
Shared
In all countries, same ambition, same
strategy, same solutions, same services, ….
Strategy
Global monitoring and consolidation
FERMA – 11 October 2006 – Jean-Paul RIGNAULT 8
Adjustment or confirmation in business model

■ In-depth Knowledge per Trade Sector Qualified

Risk Engineering Feedback
Underwriting Benchmark
Best practices Global
Claims handling
Vision
■ All Lines of Business
Property and Casualty
Marine and Aviation Glocal
Space Solutions
Personal Accident, …

■ New underwriting offices

Close
■ New centers of expertise (risk engineering)

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 9

Globalization means new risks

Rules and Regulations ☺ Partnership

SOX
with a global
Mergers & Acquisitions
Risk legacy
solid and flexible
Off-shoring
Delocalization of European factories listening
Outsourcing multi-specialist
Cross-liability with sub-contrators

IT Reliability and Security intercultural

Staff Protection insurance group
Travel / mission, expatriates, …

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 10

As a conclusion

AXA story…

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 11

 Cultural and language gaps
Our experience
French German
Catastrophe
Frequently used as a casual exaggeration of A serious calamity, a problem of major
a minor problem. proportions.
Compromise
Only losers compromise. Viewed as a An agreement reached by mutual
weakness and can sap motivation. concession. It’s viewed as a realistic solution
and Germans strive for it.
Partnership
A necessary evil, unless one has majority A sharing of interests to which one aspires.
control, or there are good relations between One of the keys to the economic success of
all of the major players. post-war Germany.
Workshop
A meeting to talk about issues of immediate There is a plan of exactly what will be
importance. The agenda remains flexible. discussed and what problems resolved.
There must be results, otherwise German
participants will be disappointed.

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 12

Thank you for your attention

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 13