TWG Global plans to purchase up to $6.5 billion of assets from Delaware Life Insurance Co. as the insurer works to reduce related-party exposure uncovered during a federal investigation. Delaware Life previously said an internal probe, launched after it received a grand jury subpoena in February, found that more than $16 billion of loans should be reclassified as affiliated or related-party, lifting that category to 40% of invested assets as of Dec. 31, according to Fitch Ratings. Clear Spring Life and Annuity Co., another insurer controlled by Mark Walter through TWG, separately said it reduced related transactions by $90 million after restating $4.6 billion of assets. Fitch, S&P Global and AM Best have all revised the outlooks on the two insurers downward, even as they continue to rate them highly for financial strength. The Delaware Department of Insurance (state insurance regulator) must approve the Delaware Life asset sale. The scrutiny has widened to Walter, while TWG says it is cooperating and intends to satisfy regulators.