Travelers, Excalibur Resolve Reinsurance Dispute Involving PA LMX Spiral Settlement

HARTFORD, Conn. — Travelers Indemnity Co. has settled a reinsurance dispute with Excalibur Reinsurance Corp. over funding for Travelers’ settlement of errors and omissions claims brought against a broker in the wake of the PA LMX Spiral.

In a filing in the U.S. District Court for the District of Connecticut, the parties stipulated to dismissal of the action with prejudice and without costs to either party.

Two insurers sued a reinsurance broker for losses they allegedly sustained in connection with the PA LMX Spiral. The broker turned to Gulf for coverage. As successor to Gulf, Travelers paid $3.965 million to …