N.Y. Law Applies to Retrocessional Dispute, Excalibur Contends

HARTFORD, Conn. — Excalibur Reinsurance Co. says it is not required to post security before answering Travelers Insurance Co.’s (NYSE: TRV) complaint in a $1 million retrocessional dispute because New York, rather than Connecticut, law applies and Excalibur is licensed in New York.

In a Sept. 20 response to Travelers’ motion to strike its answer and counterclaims, Excalibur asserts the reinsurance contract’s choice-of-law provision requires the application of New York law to the dispute, which is pending in the U.S. District Court for the District of Connecticut.

Travelers reinsured certain policies issued to Ernst & Young by the accounting firm’s …