Walter companies paid rating agency $8mn

By the Editorial Team · Monday, August 3, 2026

Two insurers majority owned by billionaire Mark Walter have paid $8 million to credit rating agency Egan-Jones amid U.S. investigations into their expanding private credit holdings. The payments and reliance on Egan-Jones’ ratings raise concerns about potential conflicts of interest and risk inflation in these insurers’ portfolios, which regulators are actively scrutinizing.

Two insurers majority owned by billionaire investor Mark Walter have paid a combined $8 million to the credit rating agency Egan-Jones since 2024, according to regulatory filings reviewed recently. The payments come amid ongoing investigations by U.S. prosecutors into the private credit investments held by insurers under Walter’s control.

Delaware Life and Clear Spring, both insurers linked to Walter through his investment firm TWG Global, have significantly increased their holdings in private credit assets. Following inquiries by the U.S. Department of Justice and the Securities and Exchange Commission, Delaware Life reclassified a substantial portion of its portfolio, causing affiliated private credit assets to rise from 3 percent to 42 percent of the insurer’s total holdings.

Egan-Jones, a relatively small credit rating provider with about 20 analysts, has played a notable role in evaluating these private credit investments. A person familiar with Delaware Life’s operations noted that many of the insurer’s affiliated investments relied on Egan-Jones’ ratings, even as other insurers have distanced themselves from the agency due to concerns about the quality and leniency of its assessments.

The use of Egan-Jones has drawn scrutiny amid broader concerns about potential conflicts of interest in the private credit market. Industry observers and regulatory bodies have raised alarms that some private investment firms owning life insurers may be inflating riskier debt levels within these insurance portfolios, at times connected to other parts of their corporate structures. There is speculation that insurers might be selecting agencies like Egan-Jones to obtain more favorable ratings that reduce their capital requirements for backing higher-risk assets.

Data from S&P Global indicates that among the four U.S. life insurers disclosing fees paid to Egan-Jones in 2025, three are linked to Walter, including Delaware Life, Clear Spring, and EquiTrust. The latter paid approximately $1 million to Egan-Jones last year. EquiTrust was once majority owned by Guggenheim Partners—where Walter serves as chief executive—before a 2015 majority stake sale to former basketball player Earvin “Magic” Johnson, a former Lakers teammate of Walter’s. Walter later served on EquiTrust’s board, though the insurer is now owned by Amistad Financial Group.

When questioned about the payments, Egan-Jones stated that such fees were part of standard business operations for legitimate rating services and that it is common for investors to engage rating agencies. Representatives for Delaware Life, Clear Spring, TWG Global, and Walter declined to comment, while EquiTrust did not respond to inquiries.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.