Mark Walter’s insurer, Delaware Life Insurance Company, plans to reduce its lending to its own businesses by up to $6.5 billion as part of a remediation plan. The insurer had initially reported $1.4 billion in related-party exposure, representing about 3% of its invested assets, but after restatement this figure surged to over $17 billion, accounting for between 39% and 42% of total invested assets. Total related-party exposure across all of Walter’s insurance entities likely exceeds $20 billion. Ratings agencies S&P, AM Best and Fitch have all revised their outlook to negative. Mark Walter has sold his stake in the Los Angeles Lakers and pledged Guggenheim Partners equity as collateral to address the financial pressures created by the investigation.
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