Excalibur Denies Liability for Travelers’s $1.6 Million Reinsurance Claim

HARTFORD, Conn. - Excalibur Reinsurance Corp. asserts that it is not obligated to partially fund Travelers Indemnity Co.'s (NYSE: TRV) settlement of errors and omissions claims brought against a broker in wake of the PA LMX Spiral, asserting Travelers failed to allocate the settlement in good faith.

In its March 4 answer to Travelers’s amended complaint filed in the U.S. District Court for the District of Connecticut, Excalibur further asserts that Travelers failed to back its claims with the requisite documentation and breached the reinsurance treaty by denying Excalibur access to its records.

Traveler’s predecessor, Gulf Insurance Co., issued …