The head of Mark Walter ’s insurance companies told authorities he was unaware that the firms had loaned more than $20 billion to the sports mogul’s other businesses, according to people with knowledge of the matter.
Dan Towriss, chief executive officer of Walter’s Delaware Life Insurance Co. and Clear Spring Life and Annuity Co., made the statements in a voluntary interview with federal prosecutors in New York in late August, two of the people said. Towriss made similar remarks in recent months to regulators at the Delaware Department of Insurance, another person said.
The comments heighten questions about how Walter, the billionaire owner of the Los Angeles Dodgers, was able to borrow from his insurers without having them disclose the arrangements to state regulators as required. The insurers belatedly reported the loans in a June filing and said the US Department of Justice and Securities and Exchange Commission are investigating.
Insurers are legally required to tell regulators which of their investments involve so-called affiliates – companies with which they share a common owner. In his statements to authorities, Towriss said he didn’t know that the ultimate recipients of the loans were connected to Walter, the people said, asking not to be identified discussing confidential details.
Walter’s TWG Global holding company said in a statement that “no one has been harmed, there is no fraud, and no one at TWG Global has committed any wrongdoing.” The firm added that it’s continuing to work with the Justice Department and SEC “and we look forward to resolving this matter.”
Representatives of the insurance companies; the US Attorney’s Office in Manhattan; and the Delaware Department of Insurance declined to comment or didn’t reply to messages seeking comment.
Towriss isn’t thought to be a target of the probe, the people said.
His statements add to the intrigue around a lending arrangement that swelled in recent years to represent more than 40% of the insurers’ investment portfolio. Many of the loans in question went to third-party companies controlled by people with longstanding ties to Walter, Bloomberg reported earlier. From there, the money was loaned back to other businesses controlled by Walter. It’s unclear who knew about the ultimate destination of the funds.
Employees of TWG Global, the parent company through which Walter owns the insurers and his other businesses, had recommended the loans to Delaware Life and Clear Spring, one of the people with knowledge of the matter said.
An actuary by training, Towriss is one of Walter’s longest-serving deputies. When Walter entered the insurance business with the purchase of Clear Spring in 2009, Towriss joined as chief risk officer, ascending to head the entire insurance business in 2018. He oversees the operation from its headquarters outside Indianapolis.
In addition to the Dodgers, Walter owns stakes in the Los Angeles Lakers, Chelsea Football Club and Guggenheim Partners, the financial firm where he’s CEO.
Towriss plays a key role in another of Walter’s sports ventures, serving as CEO of TWG’s motorsports arm and head of that unit’s Cadillac Formula One team. Over the past year, Towriss crisscrossed the globe attending Formula One races and promotional events from Miami to Monaco, fired the team principal and personally oversaw the crafting of a Super Bowl ad.
The insurers haven’t disclosed where in Walter’s sprawling business empire the loan money went, so it’s unclear whether any of the lending involved Towriss’s motorsports unit.
Walter has been restructuring his empire to reduce his reliance on the insurance company loans. His TWG has proposed swapping $6.5 billion of unaffiliated assets with Delaware Life in exchange for affiliated ones. He recently inked deals to sell his stakes in the Lakers and Chelsea FC, although he has opted not to unload other assets, including the Dodgers, and said he anticipates investing in more sports teams in the future.