TWG Global to buy up to $6.5 billion of Delaware Life assets amid scrutiny

TWG Global plans to purchase as much as $6.5 billion of affiliated assets from Delaware Life Insurance Co. as Mark Walter-controlled insurers work with Delaware regulators to reduce related-party exposure. Delaware Life has said an internal investigation launched after a February grand jury subpoena found that more than $16 billion of loans should be reclassified, lifting related-party exposure to more than $17 billion, about 39% to 42% of invested assets, or 40% as of Dec. 31 according to Fitch Ratings; Clear Spring Life and Annuity Co. has separately restated $4.6 billion of assets and reduced related transactions by $90 million. The Wall Street Journal reported that federal prosecutors and the SEC are examining whether Walter or his businesses concealed financial ties while borrowing from insurers he controls, while Fitch, S&P Global and AM Best have revised outlooks on the insurers downward even as they continue to assign strong financial strength ratings. No formal charges have been filed.

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