Buy, target price: EUR 42.0

Chart comment:

VIG has seen a correction in March, but has stopped before the next support levels at EUR 36 and the 200d moving average at around EUR 35.5. It looks like the downside is rather limited currently, while a retest of the year-high at above EUR 40 is realistic.

Fundamental arguments:

VIG will present another record set of figures for FY 2012 including a top line growth of almost 10% and EBT reaching EUR 585mn

The company is the no. 1 in terms of market shares in Austria, Czech Republic, Slovakia and Romania; in Poland the company is on the way to reach a top 3 market position

CEE countries offer more long term growth opportunities due to the lower insurance density and insurance penetration

The postponement of the implementation of Solvency II strengthened the sentiment of the insurance industry

VIG stock is still traded below the Embedded Value which amounted to EUR 41.8 at the end of 2011

VIG has an outstanding balance sheet including a war chest of some EUR 1.5bn earmarked for further acquisitions