Enstar Group to Buy AF Group, Expand U.S. Specialty Insurance via Reinsurance Platform

Deal moves AF Group into Enstar’s reinsurance-led platform

Enstar Group announces a definitive agreement to acquire AF Group from Blue Cross Blue Shield of Michigan, taking the national workers’ compensation and specialty insurer into a reinsurance-backed ownership structure. The transaction, backed by investment vehicles managed by affiliates of Sixth Street, is designed to support AF Group’s growth while enabling Blue Cross to reinforce its financial flexibility and mission to provide affordable health care. Closing is subject to customary conditions and regulatory approvals.

Enstar deepens U.S. specialty insurance footprint

Enstar is positioning itself to expand its U.S. commercial and specialty insurance presence by bringing AF Group into its portfolio as a largely standalone operating company. With more than $22 billion in assets and three decades of industry experience, Enstar and its investor group are presenting underwriting scale, network access and strategic capabilities that the buyer says will accelerate AF Group’s nationwide operations and loss outcomes in workers’ compensation. The acquisition allows Enstar to leverage established distribution and claims management expertise while preserving AF Group’s existing product lines and Lansing headquarters.

The deal underscores Enstar’s focus on acquiring profitable specialty carriers with stable management and the ability to operate autonomously under the group’s capital and operational framework. Enstar and Sixth Street frame the transaction as complementary: Enstar contributes insurance and reinsurance know-how and capital markets access, while AF Group brings a national footprint and specialised workers’ compensation competencies developed over a 32‑year evolution from a state-based provider. Enstar plans to maintain underwriting continuity and retain leadership to limit disruption to brokers, customers and employees.

Blue Cross frames sale as mission-preserving step

Blue Cross Blue Shield of Michigan, which acquired AF Group in 1994, says the divestiture is necessary to preserve its core health-insurer mission in the face of rising upstream health-care costs. President and CEO Tricia Keith frames the transaction as a way to strengthen the insurer’s financial foundation and capital flexibility while keeping AF Group operationally intact.

Regulatory review, jobs and service continuity

AF Group CEO Lisa Corless expresses optimism about the partnership and gratitude for the transition, noting the company will continue serving customers nationwide. Parties tell stakeholders the transaction aims to preserve jobs, underwriting stability and service continuity pending regulatory approvals expected within customary timeframes.