Delaware Life Faces Proposed Class Action Over Alleged Private Credit Disclosures
From the desk of Jim Eccleston at Eccleston Law
A Florida investor has filed a proposed class action against Delaware Life Insurance Co. and related companies and individuals, alleging that the insurer failed to accurately disclose the extent of its investments in private credit arrangements tied to affiliated companies.
The investor seeks to represent a nationwide class of people who purchased fixed annuities, fixed indexed annuities and related income riders from Delaware Life during the period covered by the alleged misstatements. According to Think Advisor, he filed the complaint in the U.S. District Court for the Southern District of Florida, and asserts claims for fraudulent concealment, negligent misrepresentation, breach of contract and other alleged violations of Indiana common law. He also seeks to represent a Florida subclass under the Florida Securities and Investor Protection Act. The investor alleges that Delaware Life's asset restatement directly affects the financial strength supporting guarantees sold through its annuity products.
The defendants not only include Delaware Life, but also its parent Group 1001 Insurance Holdings, TWG owner Mark Walter and Guggenheim Partners.
The investor purchased a Delaware Life TruePath Income Annuity through an exchange from an existing variable annuity. According to the complaint, the contract carried an initial premium of $1,013,590.14 and provided for annual income of $181,677 to the investor and his wife after a 10-year holding period.
According to Think Advisor, the dispute centers in part on Delaware Life's disclosures concerning related-company investments. In June 2025, the insurer reported that $1.4 billion, or 3 percent of its invested assets, involved arrangements tied to Walter-linked companies. By February 2026, Delaware Life reported $16.37 billion in related-company investments, representing 39 percent of its total invested assets.
The investor alleges that Delaware Life and affiliate Clear Spring directed substantial policyholder premiums and other insurer assets into private credit transactions involving companies connected to Walter, with Guggenheim introducing the deals.
The complaint further alleges that Walter-related companies structured the transactions through multiple borrowers while concentrating billions of dollars of policyholder-backed assets on what the investor characterizes as a single underlying credit risk. The investor claims the structure made related-party transactions appear to be arm's-length transactions.
Think Advisor reports that a Group 1001 representative said that the company is aware of the lawsuit and plans to defend it vigorously.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, class action lawsuit, private credit, securities litigation, financial disclosures, delaware life insurance
