UBS points to 'attractive' market mix for Austrian insurers

UNIQA Insurance AG

12/08/2024 12:48

** UBS highlights Austrian insurers' "attractive
combination" of exposure to a developed home market and the
growing Central and Eastern European market
    ** It starts coverage of Vienna Insurance  VIGR.VI  and
UNIQA  UNIQ.VI  with respectively "buy" and "neutral" ratings
    ** Owing to the exposure, both companies can offer
attractive dividend yields, while their top-line growth could
outpace many European peers, UBS notes
    ** The broker prefers Vienna Insurance over UNIQA due to
lower leverage and market sensitivity
        ** It says Vienna Insurance is in a position to increase
its revenue by around 8% over the next three years, against
around 6% it estimates for UNIQA
  
    ** Vienna Insurance's excess capital could lift its EPS by
16-23% in case of M&A, or 24% of market cap could be distributed
to shareholders
    ** UNIQA is more sensitive to market developments, more
concentrated in lower-growth Austria, has higher leverage and a
lower growth outlook, UBS says

 (Reporting by Amir Orusov and Anastasiia Kozlova)
 ((Amir.Orusov@thomsonreuters.com;
Anastasiia.Kozlova@thomsonreuters.com))