Axa Insurance has denied speculation that it is set to move into the legal expenses market via a new partnership with a leading firm in that market.
An industry source claimed that AXA had asked for details of many legal expenses products available on the market in what was termed an "informal tender arrangement."
However, a spokesman for AXA said: "On the direct side of AXA we have already made our decision.
"On the other side, it is an area in which we do not really wish to change because it is something that is offered and arranged by our brokers and intermediaries.
"The only time we have been involved in that area is in partnership with banks or affinity groups and we are not looking to provide legal expenses insurance." However, he did admit that AXA is seeking for only one company to provide legal expenses support services, such as helplines.
The insurer currently works with Eastgate Assistance and the RAC to provide policyholders with legal expenses advice. As part of a wider strategic review to rationalise its overall number of trade partners, only one of the two firms will eventually continue.
The spokesman said: "Part of the integration process is to look at the people we trade with. There is a plan to consolidate, but that is an on-going process.
"Guardian had a strong relationship with Eastgate, but there are an awful lot of people in the ring and we are trying to establish what different people can provide. If you are bringing policies together, then it makes sense to bring together trading partners."