Axa XL says it will continue to provide "best in class" solutions and accept new business for Australian financial lines, rejecting suggestions that it is pulling back from the local market.

The insurer has announced a retreat from directors’ and officers’ (D&O) insurance and other financial lines in the London market, but says these decisions will not be mirrored in Australia.

“Axa XL remains committed to the Australian financial lines market, and continues to accept new submissions,” a spokeswoman told insuranceNEWS.com.au.

“Axa XL will continue to provide best in class financial lines solutions to its Australian clients and broker partners.”

The insurer acknowledges the current challenges in the sector which have worsened as the coronavirus pandemic has taken hold.

“Axa XL is exercising comprehensive risk selection in a challenging financial lines market, which has suffered long term profitability challenges and faces economic slowdown risk, exacerbated by COVID-19,” the spokeswoman said.

UK-based publication The Insurer revealed earlier this month that Axa XL will “further curtail” its risk appetite for D&O and other financial lines in the London market.

Axa XL told UK brokers it “intends to non-renew a large part of its existing UK D&O book between now and 1 January 2021”. It had already suspended writing new London D&O business.