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

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Globalization : an example Shipbuilding order book by type of ship
in million DWT
250

219.5 177.0

230.6

6.5 3.6

200

53.0

13.9
150

112.6

112.3

115.6
67.9

100

85.7
50

0

2000

2001

2002

2003
Bulk Carriers >=10,000dwt Others (of which Passenger Vessels >=1,000grt)

2004

2005
LNG/LPG Carriers General cargo (>= 300gt)

Tankers >=1,000dwt Container Vessels >=5,000dwt

Source: Indicators issued from various sources such as ISL Bremen for World fleet and trading figures FERMA – 11 October 2006 – Jean-Paul RIGNAULT and Clarkson Research Studies for shipbuilding and scrapped vessels.

3

Globalization : an example Shipbuilding share of deliveries
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1975 1977 1979
Japan

% CGT Deliveries

Europe Others Korea China

1981 1983

1985

1987

1989

1991

1993

1995

1997 1999

2001

2003

Source: Clarkson Research Studies for shipbuilding and scrapped vessels.

FERMA – 11 October 2006 – Jean-Paul RIGNAULT

2005

4

Globalization : an example Marine insurance market

• New modern and well protected plants (CAR / EAR, Property, …) • 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 8 6 4 2 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

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Globalization AXA’s close and qualified approach
For our Clients
Quality of the Relationship Quality of the Advice Solution Delivery

Strong Cultural Change

Strong Differentiation in Clients’ Mindset

For our Employees and Sales Forces
Motivation Career Management Empowerment Recognition

Close & Qualified

For our Shareholders
Reward Trust Openness

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Adjustment or confirmation in business model
■ Knowledge of local markets’ regulations / rules / specificities A properly organized and managed dense International Network (answering Clients’ needs in more than 80 countries - China) ■ Empowered and integrated decision centers supported by Homogeneous Underwriting policy (by cross-border lines of business) Consistent Quality of Services In all countries, same ambition, same strategy, same solutions, same services, …. Global monitoring and consolidation
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Close

Universal Clear Shared Strategy

Adjustment or confirmation in business model
■ In-depth Knowledge per Trade Sector Risk Engineering Underwriting Claims handling ■ All Lines of Business Property and Casualty Marine and Aviation Space Personal Accident, … ■ New underwriting offices ■ New centers of expertise (risk engineering) Feedback Benchmark Best practices

Qualified

Global Vision Glocal Solutions Close

FERMA – 11 October 2006 – Jean-Paul RIGNAULT 9

Globalization means new risks
Rules and Regulations
SOX

☺ Partnership with a global solid and flexible listening multi-specialist intercultural insurance group

Mergers & Acquisitions
Risk legacy

Off-shoring
Delocalization of European factories

Outsourcing
Cross-liability with sub-contrators

IT Reliability and Security Staff Protection
Travel / mission, expatriates, …

FERMA – 11 October 2006 – Jean-Paul RIGNAULT

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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 post-war Germany. all of the major players.

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

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