Travelers Seeks Indemnity for Grant Thornton Claims from Excalibur; Requests Pre-Pleading Security

HARTFORD, Conn. — In a new suit, Travelers Insurance Co. accuses Excalibur Reinsurance Corp. of breaching a reinsurance treaty by failing to pay its share of Travelers’ $3 million settlement of claims brought against accounting firm Grant Thornton.

In an Aug. 16 complaint, filed in the U.S. District Court for the District of Connecticut, Travelers claims Excalibur owes $675,000 under an errors and omissions reinsurance treaty. In a separate filing, Travelers seeks an order requiring Excalibur to post $675,000 in pre-pleading security pursuant to Conn. Gen. State. Section 38a-27(a).

According to the complaint, Travelers purchased an “Accountants, Lawyers, Miscellaneous …