TWG Global, controlled by billionaire Mark Walter, said it is cooperating with U.S. regulators investigating whether private credit investments in its insurance units were improperly classified as unrelated assets.
The company outlined a plan to swap up to $6.5 billion of Delaware Life Insurance Company’s related-party investments for independently classified assets, aiming to reduce the insurer’s affiliated exposure from 39% of invested assets as of June 30 to 26% upon regulatory approval. Delaware Life restated its 2025 financial statements in June, reclassifying large portions of its private credit holdings as related-party assets after earlier disclosures showed affiliated investments had surged to 42% of total assets by year-end 2025, up from less than 5% prior to the restatement.
TWG filed the proposal with the Delaware Department of Insurance, which is evaluating the plan. The company stated the transaction is intended to eliminate affiliated exposure in an orderly manner while benefiting both the insurers and TWG. Regulators including the U.S. Attorney’s Office for the Southern District of New York, the SEC, and the DOJ have issued subpoenas to Delaware Life and Clear Spring Life and Annuity Company, both controlled by TWG, as part of broader probes into the classification of investments.
Mark Walter, who also owns the Los Angeles Dodgers and a stake in the Cadillac Formula 1 team, denied allegations of fraud in a statement. TWG emphasized that its sports assets, including the Dodgers and TWG Motorsports, are not for sale and that Walter’s recent $12.5 billion agreement to sell the Los Angeles Lakers was unrelated to the insurance operations. The company added it is not seeking to conduct a fire sale of its sports holdings to fund insurance operations.
