Two Banks Pause Sale of Delaware Life Products Amid Federal Probes
Truist Financial Corp. (TFC) and Fifth Third Bancorp (FITB) have paused selling insurance products from Delaware Life, an insurer owned by Mark Walter, amid federal investigations into how the company reported $20 billion in affiliated assets controlled by Walter's entities. The U.S. Attorney’s Office for Manhattan and the SEC are investigating both Delaware Life and its affiliate Clear Spring Life & Annuity. The pause follows a statement from TWG Global, Walter’s holding company, denying any fraud at the insurer or its affiliates. A Delaware Life spokesperson said communications with distribution partners remain open as it works to reduce affiliated-party assets. The probe intensified after FBI agents reportedly seized Walter's phone and computer in September 2024 during a warrant execution on his private jet. In February, both companies received grand jury subpoenas, prompting Delaware Life to revise its disclosure of affiliated investments from 3% to 42%. The situation has drawn broader attention following Walter’s recent sale of the Los Angeles Lakers.
