Excalibur Asserts Counterclaims Against Travelers in $1 Million Retrocessional Coverage Dispute

HARTFORD, Conn. — Excalibur Reinsurance Co. asserts it is not obligated to pay Travelers Insurance Co. (NYSE: TRV) $1 million in retrocessional proceeds for the settlement of claims brought against Ernst & Young, arguing that Travelers breached the parties’ treaty by improperly allocating the settlement payments.

In its Aug. 12 answer filed in the U.S. District Court for the District of Connecticut, Excalibur further argues that Travelers breached the treaty by denying the reinsurer full access to its books and records.

Travelers reinsured certain policies issued to Ernst & Young by the accounting firm’s captive insurers, Gloucester Insurance Ltd. and …