Insurance Companies Emerge as New Shadow Banking Risk Amid Filing Discrepancies

Delaware Life Insurance Company revised its 2025 annual filing, revealing that related-party holdings surged to approximately $17 billion, or 39% of its invested assets, compared to the previously reported $1.4 billion and 3%. Clear Spring Life and Annuity Company also issued a similar correction. These discrepancies have raised concerns regarding potential systemic risks within the insurance sector, drawing parallels to the vulnerabilities typically associated with bank runs.