Travelers Sues Excalibur for $216,800 in Reinsurance Proceeds

HARTFORD, Conn. — The Travelers Indemnity Co. (NYSE: TRV) has sued Excalibur Reinsurance Corp. in Connecticut federal court, seeking $216,800 in allegedly past due reinsurance proceeds, plus a declaration that Excalibur is obligated to pay Travelers’ future reinsurance billings.

The March 1 complaint, filed in the U.S. District Court for the District of Connecticut, accuses Excalibur of ignoring billings submitted under two quota share reinsurance contracts.

According to the suit, Travelers’ predecessor, Gulf Insurance Co., issued errors and omissions policies to a variety of entities. These E&O policies were allegedly reinsured under two “errors and omissions liability variable quota share …