“The Mark Walter situation is that on steroids,” …

The situation surrounding Mark Walter is being described as "on steroids," according to Granato. Insurers' affiliated investments can lead to conflicts of interest due to the same individual controlling both sides of a transaction. This allows the company owner to potentially secure more favorable loan terms for their affiliated business.

If the borrowing company were to default on a loan, the same owner could also decide how aggressively to pursue repayment. Furthermore, the loan is backed by policyholders who are often unaware of this arrangement. Granato revealed that Delaware Life and Clear Spring Life recently discovered errors in how related business investments were presented in their 2025 annual statements.

Specifically, Delaware Life revised its disclosures to reveal nearly $17 billion more in investments linked to related businesses, raising its share of the company's portfolio from around 3 percent to 42 percent.