Effective immediately, ESI is pausing new sales of the Delaware Life TruePath Income Fixed Indexed Annuity. ESI is taking this action after Delaware Life has made certain disclosures, discussed below. ESI will continue to monitor developments involving Delaware Life and will provide an update if there is a change to the product’s availability.
In June 2026, Delaware Life disclosed that it had reclassified a material portion of the private credit investments held in its investment portfolio from unaffiliated to affiliated. Delaware Life reported that affiliated investments represented approximately 42% of its general account invested assets as of December 31, 2025, and 39% as of June 30, 2026. Delaware Life also disclosed that it received a grand jury subpoena from the U.S. Attorney’s Office for the Southern District of New York and that the Securities and Exchange Commission is conducting a parallel investigation.
Following these disclosures, Delaware Life’s financial strength ratings remained A- with AM Best, S&P and Fitch. However, S&P revised its outlook from Stable to Negative, Fitch placed its rating on Rating Watch Negative, and AM Best revised its outlook from Positive to Negative. AM Best stated that the investment reclassification resulted in a material decrease in the company’s year-end 2025 risk-adjusted capitalization as measured by its Best’s Capital Adequacy Ratio, BCAR model.
Delaware Life has announced an Affiliated Investments Reduction Plan and a Control Remediation Plan. As part of the investment reduction plan, Delaware Life entered into an agreement with its parent company, TWG Global, to exchange up to $6.5 billion of recently reclassified private credit investments for an equivalent amount of non-affiliated investments. The transaction is subject to required regulatory approval. Delaware Life has also outlined additional steps intended to reduce its affiliated investment holdings and strengthen its financial reporting and investment governance controls.
There has been no change to Delaware Life’s financial strength ratings or the terms and benefits of existing Delaware Life policies as a result of these developments.
ESI will continue to monitor Delaware Life’s remediation efforts, financial strength ratings and other developments and will review this matter as additional information becomes available.
Additional information is available directly from Delaware Life:
Delaware Life – Affiliated Investments & Remediation Update, September 11, 2026
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