How well is global financial services giant Zurich performing? Not well, if you go by the company’s share price in Europe. They have dropped to 1997 levels amid unsubstantiated rumours that Deutsche Bank has cut its 5% shareholding in half and senior managers are also selling their shares. Analysts have also expressed concern about the company’s exposure to the falling US dollar.

But Zurich is sticking to its predictions of full-year earnings of about $4  billion.

The company still hasn’t confirmed it is selling its US-based investment company Zurich Scudder or Kemper Life as part of its $8 billion disposal program. Also believed to be in CEO Rolf Hueppi’s sights is Zurich Re.

Conjecture is rife in the European markets that investment bank Morgan Stanley has been retained to facilitate the Kemper Life sale. AIG – fresh from snapping up American General Travelers and Progressive Life, is one of the players mentioned.