Investigation into Dodgers owner is a reminder that 'zombie insurers' walk among us — critics warn 'they will blow up'

Mark Walter, CEO of Guggenheim Investments and owner of both the Los Angeles Dodgers and Lakers, is under investigation by federal authorities. The probe focuses on whether Walter's companies, including several insurance firms, accurately represented billions of dollars in assets. Walter, who has not been charged with any crimes, owns approximately $1.1 trillion in life insurance assets.

The investigation has sparked concerns about the investment strategies of the insurance industry as a whole. Critics argue that private equity firms' involvement in the insurance sector has led to riskier investments, potentially resulting in "zombie insurers" that could cause future crises. Anant Bhalla, a private investment firm CEO, claims private equity firms are opting for riskier investments than traditional insurers.

Tom Gober, a forensic accountant, warns that private equity firms have taken existing insurance industry practices and amplified them, putting policyholders at risk. Despite being overseen by states, insurance companies are not subject to federal regulation, making it difficult to monitor their investments and track their financial health.

A whistleblower at Guggenheim Investments alerted federal authorities to potential issues with Walter's company's booked revenue from insurance companies.