Nine Lloyd's managing agents are being sued by US casino magnate Steve Wynn, after he accidentally poked a hole in a multi-million dollar Picasso painting.

Insurers led by XL are facing legal action over the settlement of the $54m insurance claim.

Wynn, who purchased the painting Le Reve for $48.4m in 1997, claims its value significantly depreciated after he "unintentionally placed a tear" in the 1932 painting with his elbow while showing it to friends.

He had agreed to sell the masterpiece for $139m to hedge fund titan Steven Cohen on the day of the accident in September last year.

As a result, Wynn contends in court papers that the painting's value has plummeted to $85m and is now seeking to speed up the claim and recover the difference.