UPDATE 3-Turkey's Koc looking at sale of Yapi Kredi Sigorta

(Adds statement from Yapi Kredi, updates shares)

ISTANBUL, Feb 14 (Reuters) - Turkey's Koc Holding KCHOL.IS chief executive, Bulent Bulgurlu, said on Thursday work was going on for a sale of Yapi Kredi Sigorta YKSGR.IS, sending the insurer's stock higher.

Yapi Kredi Sigorta is controlled by Yapi Kredi Bank YKBNK.IS, which in turn is owned by Koc Holding and Italy's Unicredit (CRDI.MI: Quote, Profile, Research).

Yapi Kredi said in a statement to the stock market that no decision had been made over selling Yapi Kredi Sigorta nor had any mandate been given to do so.

"There is work going on over a sale," CEO Bulgurlu told reporters earlier, adding that there was nothing final.

A series of foreign firms has bought into the fragmented but fast-growing Turkish insurance sector in recent years.

At 1429 GMT, Yapi Kredi Sigorta stock stood 4.6 percent higher, having earlier risen as much as 8 percent. It still outperformed the main stock index .XU100 which rose 1.5 percent.

The insurance sector .XSGRT rose 1.4 percent, with Gunes Sigorta GUSGR.IS up 2.6 percent and Aviva Sigorta AVIVA.IS 3.4 percent higher.

Among recent deals in the sector, Europe's second-biggest insurer AXA (AXAF.PA: Quote, Profile, Research) last week agreed to buy local partner Oyak out of its Turkish insurance joint venture for $525 million. Other firms that have moved into the sector include Spain's Mapfre (MAP.MC: Quote, Profile, Research) and Britain's Aviva (AV.L: Quote, Profile, Research).

According to Reuters data, Yapi Kredi Bank controls the insurance company with a 53 percent direct stake. (Reporting by Mustafa Yukselbaba; Editing by Elaine Hardcastle/Erica Billingham)