Delaware Life Insurance Company revised its related-party holdings from $1.4 billion to approximately $17 billion, representing 39% of invested assets, while Clear Spring Life and Annuity Company made a separate correction of about $4.6 billion, bringing total revisions above $20 billion. Both companies are connected to financier Mark Walter and have received grand jury subpoenas from the US Attorney’s Office for the Southern District of New York alongside a parallel SEC inquiry. According to NAIC data, 137 US insurers owned by private-equity firms hold $704.3 billion in assets, creating liquidity risk when policyholders can demand cash at any time while insurers hold long-dated private credit investments. Italy’s Eurovita episode, where its solvency ratio fell from roughly 230% to near 130% before a temporary redemption freeze in February 2023, illustrates the potential consequences of this configuration.
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