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Mark Walter insurer Delaware Life sees two banks pause sale of products
CNBC • • business
Key Points:
- Truist Financial Corp. and Fifth Third Bancorp have paused selling products from Mark Walter's Delaware Life due to concerns over federal investigations into how the insurer's parent company reported about $20 billion in affiliated assets.
- Delaware Life and its affiliated company, Clear Spring Life and Annuity, are under investigation by the U.S. Attorney's Office in Manhattan and the SEC, with grand jury subpoenas issued in February.
- Following the subpoenas, Delaware Life revised the proportion of its invested assets affiliated with Walter-controlled entities from 3% to 42%, prompting scrutiny.
- FBI agents previously seized Walter's phone and computer in a probe related to his businesses, which has drawn attention after Walter recently agreed to sell his majority stake in the Los Angeles Lakers.
- Delaware Life continues to engage with the banks to support existing contracts and is working to reduce affiliated-party assets, while maintaining open communication with distribution partners.
