AXA XL is moving its US excess and surplus lines business onto a new carrier built to work only with wholesale brokers, the company announced today.
The property and casualty specialty risk division of AXA has formed AXA XL Excess & Surplus Lines Insurance Company, known as AXA XL E&S. The carrier will participate in the same AXA XL pool as Indian Harbor Insurance Company and will issue policies that AXA XL develops with wholesale brokers around the country.
According to AXA XL, AM Best assigned the new carrier a Financial Strength Rating of A+ (Superior) on March 25, and S&P Global Ratings rated it AA as of April 1. The regulatory work started months ago. The Surplus Line Association of Arizona added the company, NAIC No. 17863, to its list of qualified surplus lines insurers effective July 1.
AXA XL will begin writing new E&S casualty business on the new carrier in early 2027. Existing casualty policies will transfer in mid-2027, and E&S property business will follow late in the year. The company said products and rates will stay the same during the transition.
The launch comes with a new policy administration system built on Guidewire software, which AXA XL will use for its E&S business from 2027. Separately, Guidewire appointed former AXA Group Operations chief executive Alexander Vollert to its board in August.
Lucy Pilko, AXA XL's CEO for the Americas, called the new company "a significant milestone in our strategic plan." She said it would help AXA XL serve brokers and their clients and "respond quickly to evolving market demands."
Tim Whisler, head of E&S wholesale solutions, said the move supports the company's aim to "streamline operations and expand our technical underwriting capabilities." He said a tighter focus on E&S would help AXA XL "increase scale in key regions."
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The new carrier follows a steady run of senior hires at AXA XL. Whisler joined in January 2025 from Western World, a unit of Lexington Insurance, to run the programs and E&S segments. In August 2025, the company named Betsy Higgens head of casualty and Megan Kelley head of product for wholesale solutions. Jason Billingslea became head of energy for E&S in January. In July, AXA XL appointed Bob Stanton, who is based in Boston, as head of national and complex accounts.
The rest of AXA XL's book has grown slowly. In the first half of 2026, AXA XL Insurance premiums fell 1% and its reinsurance premiums dropped 9% as the group cut back in lines where pricing had softened. Surplus lines is still growing faster than the US commercial market as a whole.
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US surplus lines direct premium reached a record $143 billion in 2025, up 10.4% from the year before. According to AM Best, it was the market's eighth straight year of double-digit growth. The pace is slowing, though. Domestic surplus lines insurers grew 8.9%, ending their run of double-digit increases, and AM Best cut its outlook for the segment to stable from positive in November 2025, citing slower premium growth and softening rates.
Competition has also increased. ALIRT Insurance Research counted 65 carriers that have formed or refocused on E&S over the past decade. By the third quarter of 2025, that group held about 26% of surplus lines premium, up from less than 1% in 2016. Aviva announced plans this year to open a surplus lines operation in New York, and Lloyd's syndicate 2126, backed by Blackstone, won approval in April to write US surplus lines business.
Wholesale brokers without binding authority remained the largest distribution channel in 2025, handling about 45% of surplus lines premium, according to AM Best.
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In 2027, AXA XL will move policies to a new legal entity and a new administration system at the same time. Brokers will be watching to see whether terms and pricing really do stay the same, as the company has promised.
