French insurance giant Axa is in talks to buy US property and casualty insurer XL Group, according to reports today in US and European business media.

A deal may be announced as early as this week, The Financial Times in London says, citing sources close to the talks.

But the sources cautioned nothing is finalised as yet as the two sides are still working out the details. Paris-based Axa is known to have been investigating growth opportunities in the insurance market.

XL Group, which is based in Bermuda, incurred a $US560.4 million ($724 million) loss last year because of huge catastrophe claims from hurricanes and other natural calamities.

But CEO Mike McGavick said at the time he was “positive about where we are going” citing its “solid capital position”.

Mr McGavick oversaw XL's acquisition of Lloyd’s-based global insurer Catlin in 2015. The merged XL Catlin has a significant presence in the Australian market.