TWG Global, the private holding company controlled by billionaire Mark Walter, said on Wednesday it is cooperating with U.S. regulators to address concerns tied to related-party investments held by insurance firms within its corporate structure, and it stated there had been "no fraud." The company also disclosed that a unit, Group 1001, has filed a remediation plan with the Delaware Department of Insurance aimed at eliminating affiliated exposures on the insurers' books.
The plan submitted by Group 1001 targets Delaware Life Insurance Company and Clear Spring Life and Annuity Company. TWG characterized the proposal as a straightforward, orderly approach to lowering affiliated exposure in a way that it said would be beneficial to both the insurers and the broader TWG organization. The company added that the Delaware insurance regulator is currently evaluating the submission.
TWG described itself as a diversified holding company with interests spanning financial services, sports, artificial intelligence and technology. The firm also noted that its broader operations include investment bank and advisory firm Guggenheim Partners and a private investment business.
Regulatory scrutiny of the insurers linked to Walter centers on whether certain private credit investments were improperly classified as unaffiliated holdings, according to prior regulatory filings made by those insurance companies. As part of that scrutiny, Delaware Life and Clear Spring received subpoenas from the U.S. Attorney's Office for the Southern District of New York earlier this year, and the U.S. Securities and Exchange Commission has conducted a parallel inquiry, the filings show.
TWG said it is engaging directly with both the U.S. Department of Justice and the SEC to address questions raised by their investigations. The company did not provide further detail on the nature of those discussions in its statement. The U.S. Department of Justice and the SEC did not provide immediate comment in response to requests.
The insurers have already taken accounting and classification actions. In June, Delaware Life restated its annual financial statements and reclassified large portions of its private credit investments as related-party assets. That restatement resulted in a substantial rise in affiliated investments - lifting Delaware Life's affiliated investments to 42% of invested assets at the end of 2025, up from less than 5% previously reported.
Insurers are permitted to hold affiliated investments, but such positions are subject to heightened regulatory oversight and supervisory review because of the unique risks and potential conflicts they can present, a point highlighted by the National Association of Insurance Commissioners in prior commentary referenced by the insurer filings.
Earlier this month, TWG agreed to a potential asset exchange that would swap up to $6.5 billion of Delaware Life's related-party investments for an equivalent amount of assets classified as independent. That transaction, which is contingent on regulatory approvals, would lower Delaware Life's total affiliated assets to roughly 26% of invested assets from 39% as of June 30, according to the insurer's disclosures.
Separately, TWG sought to clarify that it is not attempting to liquidate its sports holdings at distressed or "fire sale" prices to raise capital for the insurance businesses. The company said Walter and his partners continue to receive interest from potential buyers and co-investors in their sports assets, but that TWG is not pursuing bargain sales to address the insurance operations' capital needs.
This month Walter reached a deal to sell the Los Angeles Lakers for $12.5 billion to venture capitalist Joshua Kushner and former Disney CEO Bob Iger, a transaction TWG referenced in its statement. TWG explicitly said the Los Angeles Dodgers are not being sold and that no sale process for the Dodgers has been initiated. The firm also said it is not considering exiting its stake in the Cadillac Formula 1 team or any other part of TWG Motorsports.
TWG's public remarks reiterate the firm's intent to work through regulatory reviews while pursuing a plan to reduce affiliated exposures in the insurers it controls. Regulators in Delaware are now reviewing the proposal from Group 1001, while the company continues to coordinate with federal authorities regarding ongoing inquiries.
As TWG pursues the submitted plan and potential asset exchanges, the situation remains subject to regulatory approvals and the ongoing investigations by the Department of Justice and the Securities and Exchange Commission.