Excalibur Levies Counterclaims Against Travelers in Ernst & Young Retrocessional Dispute

HARTFORD, Conn. — Excalibur Reinsurance Corp. has filed counterclaims against Travelers Insurance Co. (NYSE:TRV) in a dispute over retrocessional coverage for underlying errors and omissions claims brought against Ernst & Young.

On Feb. 13, Excalibur asserted various affirmative defenses and counterclaims of declaratory judgment and breach of contract in response to Travelers’s complaint filed in the U.S. District Court for the District of Connecticut.

Travelers, as successor to Gulf Insurance Co., reinsured certain policies issued to Ernst & Young by Gloucester Insurance Ltd. and RAM IIC Inc.

Ernst & Young was sued for alleged improprieties in its tax shelter …