The next shadow-banking problem comes from insurance companies, where nobody was looking for a bank run

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.

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.

Transactions with related entities are permitted under state insurance oversight, and the corrected labels say nothing conclusive about loan quality. They expose how a model built around private assets, affiliated managers and patient insurance money can become hard to read, even for people paid to read statutory accounts.

This now has a federal audience, as Delaware Life's second-quarter filing says the company and Clear Spring received grand jury subpoenas from the US Attorney's Office for the Southern District of New York in February.

The SEC opened a parallel inquiry into whether certain private-credit investments introduced by an affiliate should have carried related-party labels, and the filing says Delaware Life is cooperating and found disclosure errors through an internal review. Federal authorities haven't charged Walter or either insurer with a crime.