(Cuts extraneous word "and" in paragraph 10)
* Auction moved to second round two weeks ago-source
* Japanese bidders 'aggressive on price'
* Yapi Kredi Sigorta shares jump 8 pct
By Birsen Altayli and Sophie Sassard
ISTANBUL/LONDON, Jan 11 Sompo Japan Insurance,
Dai-ichi Life Insurance, Zurich Insurance and
Allianz SE are among the potential buyers for Turkish
bank Yapi Kredi's insurance arm Yapi Kredi Sigorta,
sources close to the matter said on Friday.
Turkey, Europe's fastest growing economy in 2011, has
potential attractions for foreign insurers looking to diversify
away from competitive and mature home markets where there is
less chance for growth.
"The auction moved to the second round about two weeks ago,"
one banker close to the process said.
However, another source said three of the companies were not
interested in the pensions part of the business and there would
probably need to be a third round, adding that Japanese bidders
were "very aggressive" on the price.
"Yapi Kredi is in talks to sell the whole of the insurance
unit and a majority stake in the pension unit," a third source
Dai-ichi, Sompo Japan, Zurich and Allianz all declined to
Shares in Yapi Kredi Sigorta jumped as much as 8
Yapi Kredi bank, a joint venture between UniCredit SpA
of Italy and Turkey's Koc Holding, said on
Thursday that the sale process was continuing.
One source said Munich Re was also involved,
though Munich declined to comment.
Dai-ichi, one of Japan's top four life insurance companies,
has been actively looking for overseas acquisition
opportunities, while Sompo Japan, a unit of NKSJ Holdings
, one of Japan's top three non-life insurers, bought
Turkey's Fiba Sigorta in 2010.
Allianz, Europe's biggest insurer, and Zurich also already
have Turkish units.
Corporate Japan spent a record amount in 2012 acquiring
assets abroad, up 24 percent from the previous year as a strong
yen added to the attractions of buying foreign companies with
strong growth potential.
($1=1.7753 Turkish liras)
(Additional reporting by Seda Sezer, Asli Kandemir, Taiga
Uranaka, Myles Neligan, Jonathan Gould and Dinesh Nair; Editing
by Greg Mahlich)