Travelers Moves to Strike Excalibur’s Answer, Citing Connecticut’s Security Statute

HARTFORD, Conn. — Travelers Insurance Co. (NYSE: TRV) has moved to strike Excalibur Reinsurance Co.’s answer and counterclaims filed in a $1 million retrocessional dispute, arguing that Connecticut law requires unlicensed reinsurers to post pre-pleading security.

In an Aug. 30 motion filed in the U.S. District Court for the District of Connecticut, Travelers argued that it should not be required to respond to counterclaims that Excalibur is precluded from raising.

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

Ernst & Young was sued for alleged …