Axis Specialty is reviewing its operations in Australia, with market sources saying the company may quit the country.

insuranceNEWS.com.au understands Bermuda-based Axis is undertaking a strategic review of the Australian operation, with a view to selling it or even going into run-off.

The company has been active in the Australian market since 2005 and was licensed as an insurer in 2008, shortly before buying professional risks underwriting agency Dexta.

CEO David Smith, who joined the company in January 2012, declined to comment when contacted by insuranceNEWS.com.au today. 

Informed sources say any decision on what to do with the Australian operation is unlikely to involve a complete withdrawal from the market.

“They have some heavyweight Australian business insured in the London market they need to service,” one source told insuranceNEWS.com.au.

It has been a difficult year for the Australian company’s parent, which last month withdrew from a protracted battle with European investor Exor to acquire fellow Bermudian PartnerRe.

Axis was also named during the weekend as the cyber-risks insurer of adultery website Ashley Madison, which was hacked in July and had its subscribers’ personal details published online. The website faces lawsuits claiming more than $US500 million ($702.3 million).