In a surprising move, Zurich Insurance has withdrawn from discussions on deals in emerging markets, saying the prices are too hot to handle.
Josef Ackermann, chairman of Zurich Insurance was quoted by weekly paper Finanz un Wirtschaft's Saturday edition as saying "We're not going to be a part of the increasing competition on price. Zurich's priority is profit growth over volume expansion."
According to anonymous sources, Zurich was in the running to acquire Turkey's Yapi Kredi Bank's insurance unit back in February. The insurance giant is still interested despite Ackermann's statements, only if the deal was at the right price.
Ackermann added, "As has been the case, we would only buy if the target fits our needs, is similar to us in culture, and can fulfill our financial requirements in terms of delivering profit."
The chairman of Zurich did not identify the deals that the firm has withdrawn or backed away from in the past few months.
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