The next shadow-banking problem comes from insurance companies, where nobody was looking for a bank run
Compiled by KHAO Editorial — aggregated from 1 source + 2 references discovered via search. See llms.txt for citation guidance.
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Delaware Life Insurance Company's 2025 balance sheet took on a startling new shape when the insurer corrected its annual filing: roughly $17 billion of investments were classified as related-party holdings, about 39% of invested assets, versus roughly $1.4 billion and 3% in the earlier version.
Key facts
- That Egan-Jones Ratings Company was the sole known rating provider for about 16% of Delaware Life's roughly $32 billion bond portfolio and at least half of Clear Spring's roughly $6.3 billion bond
- NAIC data for year-end 2024 counted 137 US insurers owned by private-equity firms, up from 90 in 2018, with $704.3 billion of cash and invested assets, equal to 7.8% of the roughly $9 trillion held
- Delaware Life Insurance Company's 2025 balance sheet took on a startling new shape when the insurer corrected its annual filing: roughly $17 billion of investments were classified as related-party
- Clear Spring Life and Annuity Company made a separate correction of about $4.6 billion, taking the two revisions above $20 billion across companies connected to financier Mark Walter
Summary
01 A $20B disclosure revision is raising fresh questions about insurer ties to private credit. 02 Related-party labels matter more when billions in hard-to-price assets sit on insurer balance sheets. 03 The bigger risk may be liquidity: long-dated assets can meet cash demands that arrive fast. Clear Spring Life and Annuity Company made a separate correction of about $4.6 billion, taking the two revisions above $20 billion across companies connected to financier Mark Walter.