Zurich Insurance Group is seeking further growth in emerging markets, with CEO Martin Senn saying the group wants to buy more licences in Chinese cities.

It is also targeting expansion in Indonesia and looking to become a leading insurer in Malaysia, according to Hong Kong media reports.

The emerging market expansion has already started, with Zurich buying Malaysian Assurance Alliance and 51% of Spanish bank Santander’s Latin American insurance business last year.

Zurich is targeting an after-tax return of 16% on equity, up from 13.8% in the half-year to June, and needs emerging markets to deliver it as growth in Europe and the US slows.

It expects emerging markets to contribute 40% of new life insurance business by the end of the year, according to a statement by CFO Pierre Wauthier in June.

Business operating profit fell 17% in Europe and 11% in North America in the six months to June, while rising 80% in Latin America after the Santander purchase.

In general insurance, gross written premium fell 2% in Europe, grew 5% in North America and increased 27% in non-traditional markets compared with the previous corresponding period.