Banks Pause Delaware Life Sales Amid Federal Asset Probe

Truist Financial Corp. and Fifth Third Bancorp have suspended the sale of insurance products from Delaware Life Insurance Company after federal authorities launched investigations into the firm's asset reporting. The U.S. Attorney's Office in Manhattan and the Securities and Exchange Commission are probing Delaware Life and its affiliate, Clear Spring Life and Annuity, concerning approximately $20 billion in assets linked to other entities controlled by billionaire Mark Walter.

Following grand jury subpoenas issued in February, Delaware Life revised its disclosure of affiliated-party assets, increasing the figure from 3% to 42% of its total invested assets. The investigation follows a September incident in which FBI agents seized electronic devices from Walter during a flight in Chicago.

TWG Global, the holding company owned by Walter, has denied any wrongdoing, stating there has been "no fraud" at the firms. Delaware Life has indicated that communications with its key distribution partners remain open and cooperative.