Swiss insurance group Zurich Financial Services AG (ZURN.VX) is looking for more acquisitions in Europe in the near term as it expects the current economic downturn to induce a flurry of merger activity, Annette Court, chief executive of ZFS' Europe general insurance business, said Friday.

The comments underpin Zurich's position as a major acquirer of insurance assets and come after the company last week scored a major coup in the U.S. by buying American International Group Inc.'s (AIG) car-insurance firms for $1.9 billion.

"Look at our announcement last week. To me, it looks like an opportune time to get some real, additional value into the group," Court told Dow Jones Newswires.

"It's a good time in the market. There absolutely are things which are more attractive now than they certainly have been," she said.

As an effect of poor economic conditions, "I think there will be more things (mergers) coming up in the future as well," Court said.

Since early 2007, Zurich has spent more than $4.9 billion on 17 acquisitions across the world, including in the U.K., Germany, Spain and the recent AIG buy in the U.S..

It has also entered the Russian and Turkish markets recently, and Court said the company is looking for more buys, including in Eastern Europe.

"We're interested in things that are in our core markets, but we also have a strategy to build a further presence in Eastern Europe. That's still part of our long-term plan," Court said.

Still, Zurich will remain "cautious and prudent" in its approach on acquisitions, Court said.

She didn't comment on whether Zurich is also interested in AIG's assets in Asia, though market participants say the company is looking at it.

Zurich has said previously that future buys must help maintain the company's self-imposed "ambitious" business operation profit return on equity, or BOP ROE, target of 16%.

As of December, its BOP ROE was at 16.8%, down from 18.9% in the previous year, but still exceeding the target despite poor market conditions.

Court's EGI business last year had business operating profit of $1.833 billion, up 26% from the previous year.

Court said the rate of increase last year was relatively high compared with the previous year because the 2007 results were hit by claims related to the massive floods in the U.K.

She said 2009 could see a more "normalized" rate of increase in business operating profit.

The EGI business covers 14 countries - the U.K., Germany, Switzerland, Spain, Italy, Ireland, Portugal, Austria, Morocco, Russia, Turkey, South Africa, Botswana and Zimbabwe.

Court said EGI's motor insurance business, which derives the bulk of its premiums, is in "quite a healthy position" despite the slowing economies of Europe.

She said motor insurance is a requirement in most of EGI's markets, making the business somewhat recession-proof.

In growing the business, Court said Zurich is continuing to develop a "direct" channel in selling insurance products, which means selling through the phone and the Internet, as opposed to hiring agents.

Besides increasing its number of customers, the company is also trying to raise the number of products sold per customer, by using packaged motor and home insurance deals, she said.

Company Web site: www.zurich.com

-By Vladimir Guevarra, Dow Jones Newswires, Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com