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

2026 FEB 23 (NewsRx) -- By a News Reporter-Staff News Editor at Mergers & Acquisitions Daily News -- 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.
Keywords for this news article include: Blue Cross Blue Shield of Michigan, Investment and Finance, Mergers and Acquisitions.

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