Uniqa poised for growth in Austria and CEE, Berenberg says

UNIQA Insurance AG

21/05/2025 08:38

** Berenberg initiates Austrian insurance group Uniqa UNIQ.VI with "buy" as it sees sustainable growth in Central and Eastern Europe (CEE) and Austria

** It expects Uniqa to achieve and surpass its 2024-2028 targets of 5% top-line growth led by Austrian health and CEE insurance, 6% EPS CAGR helped by operational leverage and 50-60% dividend payout backed by strong solvency

** The divestment of smaller units in the Balkans and Russia is also positive, it says, with management now focused on CEE and Austria

** The acquisition of AXA's units in CEE gave Uniqa a good technological basis to grow in Poland, Berenberg says, with the company now rolling the capabilities out in other core CEE markets

** The broker notes that Uniqa has a very high solvency rate, which gives it a lot of flexibility for acquisitions and to reduce debt

** A package of new policies and a keener pricing strategy in health insurance in Austria after previous conservatism should lift growth and profits, it adds

** Uniqa's shares are up 3.2% at 0736 GMT, trading at their highest level since June 2012

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))