Truist and Fifth Third Halt Sales of Mark Walter’s Delaware Life Amid Federal Probe

Key points

• Truist Financial Corp. and Fifth Third Bancorp have paused the sale of Delaware Life products, according to CNBC and Bloomberg.
• The pause stems from concerns over how the insurer’s parent company, TWG Global, reported approximately $20 billion in assets affiliated with other entities controlled by billionaire Mark Walter.
• Delaware Life revised its disclosure of affiliated-party assets from 3% to 42% of total invested assets after receiving grand jury subpoenas in February.
• The U.S. Attorney’s Office in Manhattan and the Securities and Exchange Commission are actively investigating Delaware Life and its affiliate, Clear Spring Life and Annuity.
• TWG Global issued a statement two days prior asserting that there has been no fraud at the insurer or its affiliated company.
• Delaware Life continues to meet with both banks to support existing contracts and discuss efforts to reduce the level of affiliated-party assets.

Background

Mark Walter, the Los Angeles Dodgers owner and CEO of Guggenheim Partners, has faced intense scrutiny since late 2025. In September, the FBI seized his devices and those of Guggenheim Investments president Dina DiLorenzo as part of a probe into revenue recording and related-party investments. Following grand jury subpoenas in February, Walter sold his majority stake in the Los Angeles Lakers for $12.5 billion to Bob Iger and Joshua Kushner, a move that occurred less than a year after his acquisition. While the Dodgers remain central to his portfolio, the current investigation focuses on the financial disclosures and asset structures of his insurance empire, specifically Delaware Life and Clear Spring Life and Annuity.

Why it matters

The suspension of product sales by major distribution partners like Truist and Fifth Third signals significant reputational and regulatory risk for Delaware Life. It highlights how federal probes into complex financial disclosures can disrupt commercial relationships and force insurers to restructure their asset reporting. The situation underscores the scrutiny facing billionaire-owned financial entities and the potential impact of regulatory investigations on broader market confidence and business operations.

What to watch

Delaware Life is actively working to reduce its affiliated-party assets and maintain open communications with its distribution partners. The outcome of the ongoing investigations by the SEC and the U.S. Attorney’s Office will determine whether further regulatory actions or charges are pursued. The insurer’s ability to retain its banking partnerships and restore confidence in its disclosure practices will be critical to its future stability.