Mark Walter, co-owner of the Los Angeles Dodgers and controller of Delaware Life, is facing regulatory scrutiny for aggressive tactics in his life insurance business. Delaware Life recently reclassified an investment in Dodgers Tickets LLC as a “level 1” related-party investment, previously marked as “unaffiliated.” Walter's insurance empire is also under federal prosecutor inquiry regarding the disclosure of investments tied to his other businesses.

Investment titans are increasingly merging asset managers with insurance companies, where managers source assets to sell to insurers. Regulators are concerned about whether these practices jeopardize policyholder payouts. Apollo, a major player, has its Athene insurance division with a $387bn portfolio heavily invested in Apollo-designed corporate loans, a significant portion of which is “affiliated” and “related party.”

Apollo argues that these internal investments offer better returns and that third-party sales provide validation. However, structures like their new AMAPS product, which invests in securitized credit fund slices originated by Apollo, are increasing complexity. The National Association of Insurance Commissioners has warned of “interconnectedness” and “circular” risks from insurers buying these native-born investments. The Walter inquiry is a high-profile example, and regulators and customers must remain vigilant about potential conflicts of interest.