Travelers Seeks Enforcement of Alleged Reinsurance Settlement Agreement with Excalibur

HARTFORD, Conn. — The Travelers Indemnity Co. (NYSE: TRV) has asked a Connecticut federal judge to enforce a settlement agreement under which Excalibur Reinsurance Corp. allegedly agreed to pay $217,800 in past due reinsurance proceeds.

The June 10 motion, filed in the U.S. District Court for the District of Connecticut, says Excalibur is withholding payment in bad faith, therefore Travelers is also entitled to 10 percent interest on the allegedly past due sum.

Travelers’ predecessor, Gulf Insurance Co., issued errors and omissions policies to a variety of entities. These E&O policies were allegedly reinsured under two “errors and omissions liability …