Blue Cross / Blue Shield Of Michigan Sheds AF Group

BCBSM is raising much needed cash by selling off its profitable property and casualty insurance operation:

https://www.bcbsm.mibluedaily.com/stories/our-news/blue-cross-blue-shield-of-michigan-positions-af-group-for-future-success-with-sale-to-enstar-group-backed-by-sixth-street

Blue Cross Blue Shield of Michigan Positions AF Group for Future Success with Sale to Enstar Group, Backed by Sixth Street
By Gabby Abel | February 13, 2026

DETROIT, February 13, 2026 — Blue Cross Blue Shield of Michigan has entered into a definitive agreement to sell its wholly owned subsidiary AF Group to Enstar Group, a leading global insurance and reinsurance group backed by investment vehicles managed by affiliates of Sixth Street, a global investment firm. The transaction positions AF Group for future success, while strengthening Blue Cross’s financial foundation and capital flexibility, furthering its core commitment to delivering high-quality, affordable health care services to members and group customers. The transaction is subject to customary closing conditions and regulatory approvals.

Since being acquired by Blue Cross in 1994, AF Group has established itself as a respected, national leader in the property and casualty industry. Prior to Blue Cross acquiring AF Group, it was a state-owned organization limited in its scope of business. Under Blue Cross, AF Group has grown from a single-state workers' compensation provider to a thriving organization that offers commercial and specialty insurance solutions nationwide.

“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,” said Tricia Keith, president and CEO of Blue Cross Blue Shield of Michigan. “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.”

Enstar is a leading global insurance and reinsurance group with more than $22 billion in assets, strong financial strength ratings, and over 30 years’ experience pioneering insurance solutions. Enstar’s proven record of superior workers’ compensation outcomes, and sustained outperformance compared to the market will complement AF Group’s business and support its continued growth and underwriting operations. AF Group will also benefit from the scale, network and strategic expertise of Enstar and its investor group, including its partnership with Sixth Street. Sixth Street is a leading global investment firm with more than $125 billion in assets under management.

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, serving its customers nationwide and maintaining its Lansing headquarters.

Lisa Corless, president and CEO of AF Group, added, “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.”

The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary closing conditions. As private companies, terms of the transaction have not been publicly disclosed. J.P. Morgan Securities LLC served as an exclusive financial adviser to Blue Cross on the transaction, while Debevoise & Plimpton LLP provided external legal support and Milliman served as exclusive actuarial advisor.

About Blue Cross Blue Shield of Michigan

Blue Cross Blue Shield of Michigan, a nonprofit mutual insurance company, is an independent licensee of the Blue Cross and Blue Shield Association. BCBSM provides health benefits to more than 4.7 million members residing in Michigan in addition to employees of Michigan-headquartered companies residing outside the state. The company has been committed to delivering affordable health care products through a broad variety of plans for businesses, individuals and seniors for over 80 years. Beyond health care coverage, BCBSM supports impactful community initiatives and provides leadership in improving health care. For more information, visit bcbsm.com and MiBlueDaily.com.

About AF Group

AF Group is a nationally recognized holding company whose affiliated insurance brands are premier providers of innovative, specialty insurance solutions offered through independent agents nationwide. All policies are underwritten by a licensed insurer subsidiary. Accident Fund Insurance Company of America. For more information, visit afgroup.com. © AF Group.

About Enstar

Enstar is a global insurance and reinsurance group providing leading retrospective solutions and specialist underwriting capabilities through its network of group companies across Bermuda, the United States, the United Kingdom, Continental Europe and Australia. With over $22 billion in total assets, $6.4 billion in shareholders’ equity (as of 30 June, 2025), and more than 130 transactions completed since formation, Enstar has a proven record of pioneering innovative re/insurance solutions. The Group’s financial strength is supported by “A” ratings from AM Best and S&P for its flagship reinsurer, Cavello Bay Reinsurance Limited. Enstar is privately owned and supported by investment vehicles managed by affiliates of Sixth Street, a leading global investment firm. For further information about Enstar, see www.enstargroup.com.

About Sixth Street

Sixth Street is a global investment firm with over $125 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 700 team members including over 300 investment professionals around the world.(1) For more information, and additional disclosures, visit www.sixthstreet.com, and follow Sixth Street on LinkedIn.

(1)Total Sixth Street employees as of 10/31/2025