Delaware Life's affiliated line prints below $13.0B in the Q3 statement

On August 18 the company filed notice that TWG Global, Walter's holding company, agreed to buy up to $6.5B of affiliated assets from Delaware Life and hand back an equal amount of unaffiliated assets. It's an exchange, so the size of the investment book doesn't change. The label on part of it does. Start from $18,251,087,839, the March 31 figure on General Interrogatories line 13.27. Take out the full $6.5B and you land at $11.75B. The $13.0B threshold needs roughly 81% of the announced amount to arrive before the September 30 balance-sheet date, about 6 weeks from the announcement. The line was already falling before anyone announced anything. It came down $1,547,751,717 in the first quarter, from $19,798,839,556 to $18,251,087,839, with no press release attached. Two more quarters at that pace reaches about $15.2B on its own, so the swap has to supply roughly $2.2B on top of the organic decline. One more number, free to check. The Federal Home Loan Bank of Indianapolis names its five largest borrowers in every 10-Q. Delaware Life's advances went from $3,338M at December 31 to $4,963M at March 31, an increase of $1,625,000,000, in the same quarter affiliated investments fell $1,547,751,717. Those two figures are $77M apart. We're not telling you one funded the other; advances fund a spread business and move for many reasons, and two similar numbers in one quarter is a coincidence until someone shows the trace. What we'll say is that the quarter the affiliated line came down by $1.5B is the quarter the borrowing went up by $1.6B, both numbers are public, and nobody has put them next to each other. AM Best, revising the outlook on July 31, used the phrase "there is execution risk in doing so." That's the whole call. There is no reference class behind 45%.