US prosecutors are investigating insurance companies owned by billionaire financier Mark Walter, including Delaware Life Insurance Company and Clear Spring Life and Annuity Company. The US Attorney’s Office for the Southern District of New York and the US Securities and Exchange Commission have issued subpoenas concerning allegations that these insurers failed to adequately disclose ownership of assets linked to Walter's wider business empire.

Walter, who co-owns Chelsea FC and owns the Los Angeles Dodgers and Lakers, has historically used insurance companies to fund acquisitions. The investigation centers on whether Delaware Life adequately disclosed private credit investments tied to entities owned or controlled by TWG Global, Walter's holding company. Following the subpoenas, Delaware Life reclassified some investments, significantly increasing its affiliated investments from 3% to about 42% of invested assets, prompting S&P Global Ratings to revise its outlook to “negative”.

Regulators express concern that asset managers may be using policyholder funds for risky investments, with affiliated and related-party assets becoming a focal point. TWG stated it is aware of and cooperating with the investigation, and Group 1001, which owns the insurers, is undertaking remediation plans.