Aviva PLC (LSE:AV.) offers the best combination of earnings growth, income and balance sheet strength in the sector, UBS believes.
The Swiss bank's 750p price target implies roughly 23% upside from the current 612p share price and a total return of close to 30% once the dividend yield is included.
On the back of the FTSE 100 insurer's final results last week, a 'buy' rating was reiterated, with Aviva the bank's top pick among UK life insurers.
UBS forecasts earnings per share growth of 11% annually between 2026 and 2028, the highest rate among Europe's large-cap insurers, driven partly by synergies from the recent acquisition of Direct Line, the motor insurer.
Aviva's all-in yield, combining dividends and share buybacks, is forecast to reach 9.8% by 2028, well ahead of the European insurance sector average of around 7%, with the buyback programme expected to increase from £350 million to £400 million per year from 2028.
UBS also argued that fears around autonomous vehicles and UK motor insurance pricing were already more than reflected in the share price, and that Aviva's diversified business model made it one of the least exposed UK insurers to a credit downturn.
The shares were off 1% (in line with the wider market) at 619.8p.