Zurich Financial Services continues to have a rocky time on European markets, as rumours abound about its desire to exit its loss-making US operation Scudder Investments and concentrate on European opportunities.

It even has a buyer for Scudder. Deutsche Bank wants to swap its German life insurance unit for the US asset manager, and pay up to $2 billion on top.

Showing the adroitness for which he is famous, Zurich CEO Rolf Huppi, told a Zurich news conference that the company is still interested in the German life insurance business. Certainly Mr Huppi no longer sees a US investment manager as being quite as vital as he once did.

Zurich’s first-half result was about $1.8 billion, a drop of more than 13%. But Mr Huppi remains “absolutely convinced” that Zurich will show good growth next year after two years of what he called “transition”, and will achieve its target of 10-15% return to shareholders.