Excalibur Ordered to Post Pre-Pleading Security in Reinsurance Dispute with Travelers

HARTFORD, Conn. — A Connecticut federal magistrate judge has ordered Excalibur Reinsurance Corp. to post pre-pleading security in a reinsurance dispute with Travelers Indemnity Co., ruling that Section 38a-27 of the Connecticut General Statutes applies.

On March 17, Magistrate Judge Donna F. Martinez of the U.S. District Court for the District of Connecticut concluded that Excalibur is an unlicensed insurer and must therefore post $824,591.79 to secure any final judgment that may be rendered in this action.

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