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Insurers Pay Millions to Rating Agency Under Probe
2 Aug
Summary
- Insurers paid $8 million to Egan-Jones since 2024.
- Mark Walter's insurers reclassified billions in private credit.
- Egan-Jones rated affiliated investments for Delaware Life.
Insurers linked to billionaire investor Mark Walter have reportedly paid millions to a small credit-rating agency, Egan-Jones. Delaware Life and Clear Spring, both majority owned by Walter, have collectively paid $8 million to Egan-Jones since 2024 for its rating services. This comes as Walter faces a broad probe into the private credit investments held by insurers he controls through TWG Global.
Concerns have arisen that some life insurers acquired by private investment groups may be burdened with risky debt. Following investigations by US prosecutors and the SEC, insurers under Walter's control reclassified billions in private credit. Delaware Life's affiliated assets notably jumped from 3% to 42% of its portfolio.
A significant portion of these affiliated investments by Delaware Life were rated by Egan-Jones. This occurred even as other insurers distanced themselves from the agency due to concerns over its rating quality. Egan-Jones has been scrutinized for its support of private credit growth.
In 2025, three of the four US life insurers disclosing payments to Egan-Jones were linked to Walter: Delaware Life, Clear Spring, and EquiTrust. EquiTrust alone paid approximately $1 million to Egan-Jones last year. Egan-Jones stated that payments were for valid services and that investors have an interest in accurate ratings.
