TWG Global issued a statement on Wednesday denying allegations of fraud involving its insurance subsidiaries, as federal and state regulators intensify scrutiny over asset classifications. The company, led by Mark Walter, said its Delaware Life Insurance Co and Clear Spring Life received grand jury subpoenas from the U.S. Attorney’s Office for the Southern District of New York in February, prompting broader probes by the SEC and the Delaware Department of Insurance.
The investigations center on whether Delaware Life improperly categorized roughly $6.5 billion in private credit investments as unaffiliated when they were related-party assets. S&P Global revised its outlook on Delaware Life to negative after the insurer restated annual financial statements and reclassified a substantial volume of these investments. TWG’s plan to address the issue involves purchasing affiliated assets directly onto its balance sheet, a move that increases leverage and liquidity risk, with the Delaware Department of Insurance currently reviewing the proposal.
TWG also addressed claims regarding its sports portfolio, stating that the Los Angeles Dodgers remain unsold. The company reiterated that Dodgers president Stan Kasten has publicly confirmed the franchise is not for sale, while dismissing reports suggesting a forced liquidation. Additionally, TWG denied rumors of exiting its Cadillac Formula 1 stake.
The statement followed reports that Delaware Life agreed on August 18 to swap related-party investments for an equivalent amount of independent assets, a decision reported by Reuters eight days prior to TWG’s response. The company emphasized that Guggenheim’s auditors issued unqualified opinions for 2024 and 2025, including on the revenue under scrutiny, and that no wrongdoing was found despite the whistleblower allegations.
