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On Wednesday, Berenberg initiated coverage on UNIQA Insurance Group AG (UQA:AV) with a Buy rating and a price target of EUR14.50. The research firm’s positive outlook is based on UNIQA’s strategic growth plan for the years 2024 to 2028, which was presented at the company’s capital markets day in December 2024. Berenberg’s analysis suggests that UNIQA is on track to not only meet but exceed its growth targets.
UNIQA has set a goal to increase premiums in Central and Eastern Europe (CEE) at a compound annual growth rate (CAGR) of 8% from 2024 to 2028. Observing the company’s past performance, which showed an 11% growth in 2023 and a 14% increase in 2024 within the region, Berenberg believes that a growth rate of approximately 10% per year is sustainable. This optimism is further supported by the current low insurance penetration in the CEE market.
In Austria, UNIQA’s core market, the company aims to grow premiums at a 3% CAGR from 2024 to 2028. With premium growth recorded at 5% in 2023 and 4.6% in 2024, along with a renewed focus on health insurance, Berenberg anticipates a 3.5% CAGR for the forecast period. The research firm projects a 6.9% earnings per share (EPS) CAGR from 2024 to 2028, which is viewed as an attractive growth rate.
Berenberg’s coverage initiation reflects confidence in UNIQA’s growth prospects, balance-sheet strength, and solid fundamentals. The price target of EUR14.50 is indicative of the firm’s belief in the potential upside for the insurance group’s shares. UNIQA’s strategic plan and its execution thus far suggest that the company is well-positioned for continued growth in its key markets.
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