Lawsuit claims Delaware Life hid billions in insurer-linked investments
Questions about insurer transparency are moving from regulatory filings into the courtroom as a new class-action lawsuit targets Delaware Life Insurance Co. and billionaire investor Mark Walter.
Filed in federal court in Miami, the lawsuit alleges that Delaware Life significantly understated the amount of insurer assets tied to related parties and failed to disclose information that annuity buyers may have considered important when making retirement planning decisions.
The complaint names Delaware Life, Group 1001, TWG Global, Guggenheim Partners and Mark Walter as defendants and seeks class-action status on behalf of annuity purchasers nationwide.
The lawsuit follows disclosures earlier this year that Delaware Life was under federal scrutiny over the classification and reporting of certain private-credit investments tied to Walter-related businesses.
At the center of the lawsuit is the claim that Delaware Life reported related-party investments at roughly 3% of invested assets when the actual figure was much higher.
According to the complaint, later disclosures and restatements showed related-party investments represented between 39% and 42% of invested assets.
The lawsuit was filed by Florida resident Ira Rosner, who alleges he purchased a Delaware Life annuity without knowing the extent of the insurer’s investments tied to companies connected to Walter’s business empire.
“Defendants made—or conspired with others to make—materially identical representations regarding guaranteed lifetime income and other benefits backed by the issuing insurer’s financial strength and claims-paying ability,” the lawsuit states.
Policyholder alleges key information was withheld
According to the complaint, Rosner, 67, transferred more than $1 million from an existing annuity into a Delaware Life TruePath Income annuity in April 2026 after reviewing materials that highlighted guaranteed lifetime income and the insurer’s claims-paying ability.
The lawsuit alleges that purchasers were not informed of the full extent of the insurer’s related-party investments or the existence of federal grand jury subpoenas issued earlier in 2026 until after some policyholders’ cancellation periods had expired.
Rosner claims he would not have purchased the annuity had that information been disclosed. After later surrendering the contract, he alleges he paid more than $116,000 in surrender charges and market value adjustment penalties.
The complaint seeks class-action status on behalf of annuity purchasers nationwide who bought products during the proposed class period. It asks the court for restitution, damages and the return of surrender-related charges.
The lawsuit further alleges that Delaware Life disclosed federal grand jury subpoenas on June 26, 2026, several months after they had been issued and after some purchasers’ free-look periods had expired.
The complaint argues those buyers lost the opportunity to cancel their contracts and receive a full refund because they did not have access to information that later became public.
Group 1001 responds
In a statement, a Group 1001 spokesperson said the company intends to fight the lawsuit.
“Group 1001 Insurance is aware of the recently filed lawsuit,” the spokesperson said. “No court has ruled that Group 1001 Insurance or Delaware Life Insurance Company did anything wrong, and we intend to defend the case vigorously, consistent with our long track record of serving policyholders with integrity.”
Earlier this year, public disclosures revealed that Delaware Life and Clear Spring Life and Annuity Co., both tied to Walter’s business interests, received grand jury subpoenas related to certain private-credit investments.
Reports on those disclosures stated that prosecutors and regulators were examining whether certain private-credit investments tied to Walter-related businesses were properly disclosed and classified. No charges have been filed.
According to those disclosures, Delaware Life conducted an internal review and revised previously reported figures regarding related-party investments. The company reported that related-party investment exposure was significantly higher than earlier reported amounts.
The complaint references those revised figures as a key part of its case, arguing that they were material to consumers purchasing annuities backed by the insurer’s general account.
Broader spotlight on private equity and life insurers
The case arrives amid growing attention on the relationship between private equity firms, asset managers and life insurers.
Over the past decade, investment firms have become increasingly involved in the life insurance and annuity business through acquisitions, partnerships and asset-management arrangements.
According to McKinsey & Company, private-capital-backed insurers held nearly $1.5 trillion in assets in 2025 after years of rapid growth.
The National Association of Insurance Commissioners has also tracked the growth of private-equity-backed insurers. The organization reported that 137 private-equity-owned insurers held approximately $704.3 billion in cash and invested assets at year-end 2024.
At the same time, regulators have spent several years examining issues involving affiliated investments, related-party transactions, private-credit investments and insurer transparency.
The NAIC has published reports and conducted reviews focused on how these investment structures are reported and monitored.
Research published by the Federal Reserve Bank of Chicago found that life insurers held approximately $849 billion in private-credit investments in 2024.
The study concluded that private-equity-owned insurers accounted for a significant share of that growth and that those investments played an important role in helping such insurers gain annuity market share.
Several of the industry’s largest private-equity-backed insurance platforms have grown substantially in recent years, including combinations such as Apollo Global Management and Athene Life & Annuity, as well as similar structures involving other alternative asset managers and insurers.
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