Travelers, Excalibur Settle $1 Million Dispute Over Funding for Ernst & Young Claims

HARTFORD, Conn. — Travelers Indemnity Co. has resolved its dispute with Excalibur Reinsurance Co. in which Travelers sought $1 million in retrocessional proceeds for the settlement of claims brought against Ernst & Young.

According to a stipulation filed in the U.S. District Court for the District of Connecticut, the parties agreed to dismissal of the case with prejudice, with no costs to either party.

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 improprieties in its advice regarding tax shelters …