Mark Walter’s insurer, Delaware Life Insurance Co, will divest up to $6.5 billion in investments tied to his business interests, replacing them with independent assets as part of a regulatory response. The move follows heightened scrutiny of Walter’s financial ties to the insurer, which is owned by his holding company, TWG Global.
The decision was disclosed Tuesday by TWG Global, which stated that Group 1001—its insurance unit—remains in strong capital and liquidity positions despite the adjustments. The insurer’s actions come amid broader investigations into Walter’s business empire by U.S. federal prosecutors and the SEC, as well as a parallel probe by the U.S. Attorney’s Office for the Southern District of New York.
Regulators are examining whether Walter or his companies concealed financial relationships while borrowing billions from insurers under his control. In February, Delaware Life and Clear Spring Life and Annuity Co received grand jury subpoenas as part of the investigation. The subpoenas prompted an internal review by Delaware Life, which identified errors in the presentation of related-party investments.
The focus of the probe centers on whether private credit investments classified as unaffiliated by Delaware Life were actually linked to Walter’s broader business network. Last month, S&P Global revised Delaware Life’s outlook to negative following the insurer’s restatement of annual financial statements and reclassification of private credit assets as affiliated or related-party holdings.
The developments coincide with Walter’s recent agreement to sell the Los Angeles Lakers for a record $12.5 billion, a deal involving investors including venture capitalist Joshua Kushner and former Disney CEO Bob Iger. The Lakers transaction, announced earlier this month, underscores Walter’s expanding role in high-profile sports investments amid ongoing regulatory challenges.
