Truist Financial Corp. and Fifth Third Bancorp have paused selling Delaware Life's products amid concerns regarding federal probes into the insurer's parent company, TWG Global, and its reporting of approximately $20 billion in assets linked to other entities controlled by Mark Walter.
This decision follows a statement from TWG Global asserting that there has been no fraud at Delaware Life or its affiliate, Clear Spring Life and Annuity. The U.S. Attorney's Office and the SEC are investigating Delaware Life, with grand jury subpoenas issued in February. Notably, Delaware Life revised its disclosure of affiliated assets from 3% to 42% after receiving these subpoenas.
The implications of these investigations and the banks' pause could affect Delaware Life's operations and its relationships with key distribution partners, especially as it works to reduce the level of affiliated-party assets.
Walter's recent sale of his majority stake in the Los Angeles Lakers has also drawn attention to his business dealings, potentially influencing investor confidence in Delaware Life