Bermuda insurance firm Arch will not make a bid for rival Axis after it failed in a merger bid with PartnerRe, according to a report out of the UK.

London-based trade publication The Insurance Insider suggested that Arch, which has been linked to Axis in the past, was looking at a fresh approach.

But the report said that, after Arch looked at a bid, the firm reconsidered amid concerns over the size of Axis’ reinsurance business and doubts about the strategic value of a deal.

Axis lost out to Italian investment giant Exor in a tussle for control of PartnerRe.

Macquarie analyst Amit Kumar urged investors to buy into Axis as the business could find itself in play after the Axis/PartnerRe merger fell through.

Axis will also collect a $315 million break fee agreed as part of the merger negotiations with PartnerRe.