Blue Cross Blue Shield of Michigan has entered into a definitive agreement to sell its wholly owned subsidiary, AF Group, to Enstar Group, a global insurance and reinsurance group backed by investment vehicles managed by affiliates of Sixth Street.
The transaction is designed to position AF Group for continued growth under new ownership while strengthening Blue Cross Blue Shield of Michigan’s financial foundation and capital flexibility, enabling it to focus on its core health insurance mission. The deal remains subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2026. Financial terms were not disclosed.
Blue Cross Blue Shield of Michigan acquired AF Group in 1994, when the organization was state-owned and limited in scope. Over the past three decades, AF Group has evolved into a national property and casualty leader, expanding from a single-state workers’ compensation provider into a diversified commercial and specialty insurance organization operating nationwide.
Enstar brings more than $22 billion in assets, strong financial strength ratings, and over 30 years of experience in insurance and reinsurance. The company has completed more than 130 transactions since its formation and maintains “A” financial strength ratings from AM Best and S&P for its flagship reinsurer, Cavello Bay Reinsurance Limited. Backed by Sixth Street, which manages over $125 billion in assets under management and committed capital, Enstar is expected to provide AF Group with additional scale, capital support, and strategic expertise.
Upon completion of the transaction, AF Group will become a wholly owned subsidiary of Enstar and will continue to operate largely as a standalone company. The business will maintain its Lansing headquarters and continue serving customers nationwide.
Support: J.P. Morgan Securities served as exclusive financial adviser to Blue Cross Blue Shield of Michigan on the transaction. Debevoise & Plimpton provided external legal support, and Milliman acted as exclusive actuarial adviser.
KEY QUOTES:
“AF Group has grown and expanded to a point where it needs to be aligned with a parent organization that has the potential to take it to even greater heights of success. Blue Cross’s primary mission is focused on providing our customer groups and members with access to affordable, innovative products that improve their care and health. As upstream health care costs continue to rise and put pressure on health insurance affordability, this agreement strengthens the financial foundation that allows us to continue fulfilling that mission.”
Tricia Keith, President and CEO, Blue Cross Blue Shield of Michigan
“We are grateful to Blue Cross Blue Shield of Michigan for a successful 32-year journey together and look forward to our continued success and future opportunities under Enstar’s ownership. This transition recognizes the strength of AF Group, combining our specialist expertise, underwriting discipline and people-first culture with Enstar’s market experience and financial strength. It positions AF Group for continued growth, supporting continuity for clients, policyholders and partners, aligned with our strong commitment to delivering exceptional customer-centered service.”
Lisa Corless, President and CEO, AF Group
