Mark Walter's insurer Delaware Life sees two banks pause sale of its products amid probes

• The pauses came two days after Walter's holding company TWG Global issued a statement denying fraud at Delaware Life and Clear Spring
• Delaware Life received grand jury subpoenas in February and subsequently revised its affiliated-party disclosures following an internal review
• FBI agents seized Walter's phone and computer in September aboard a private plane in Chicago as part of the broader probe into his businesses

Summary

Key Development: Two major U.S. banks, Truist Financial Corp. and Fifth Third Bancorp, have paused selling insurance products from Delaware Life, an insurer owned by billionaire Mark Walter, chairman of the Los Angeles Dodgers.

Reason for Pause: The suspension follows federal investigations into how Delaware Life's parent company, TWG Global, reported approximately $20 billion in assets affiliated with other Walter-controlled entities. The U.S. Attorney's Office in Manhattan and the Securities and Exchange Commission are conducting probes into Delaware Life and its affiliated company, Clear Spring Life and Annuity.

Timeline and Actions:

• February: Delaware Life and Clear Spring received grand jury subpoenas
• September (prior year): FBI agents seized Walter's phone and computer during a warrant execution on his private plane in Chicago
• Recent: Delaware Life revised its affiliated-party disclosures following a review conducted after receiving subpoenas
• Friday announcement: Banks' pause revealed two days after TWG Global issued a statement denying fraud

Company Response: Delaware Life maintains that communications with distribution partners remain "open and cooperative" and is meeting with both banks to support existing contracts. The company is working to reduce affiliated-party asset levels.

Market Context: Truist has a longstanding relationship with Delaware Life, while Fifth Third only began business with the insurer in April. The investigations gained heightened attention after Walter agreed to sell his majority stake in an unspecified team earlier this month, less than a year after purchase.