Re/insurance specialist Enstar Group has entered into an agreement to acquire Accident Fund Holdings (AF Group) from Blue Cross Blue Shield of Michigan, the companies announced last week, marking a significant expansion of Enstar's US property and casualty platform.
The deal will give Enstar full ownership of AF Group through a stock purchase agreement. Financial terms were not disclosed.
AF Group, based in Lansing, Michigan, provides commercial and specialty insurance across all 50 states through its affiliate brands including Accident Fund, United Heartland, CompWest and Third Coast. The company reported consolidated gross written premium of $3.3 billion in 2025 and was recognized among the leading workers' compensation insurance providers in the US last July.
The acquisition reflects Enstar's continued evolution from primarily retrospective reinsurance solutions. The company has historically specialized in legacy portfolio transactions and loss portfolio transfers.
The purchase follows Enstar's move to private ownership last year when investment vehicles managed by Sixth Street acquired the company in a deal that valued it at approximately $5.1 billion. With over $22 billion in total assets and $6.4 billion in shareholders' equity as of June 2025, Enstar has completed more than 130 transactions since its formation.
Enstar chief executive Dominic Silvester described the transaction as "a compelling live market opportunity that brings together two organizations with complementary strengths and common values".
He added that Enstar's balance sheet strength and financial ratings will provide a platform for Accident Fund Holdings while allowing the company to expand its insurance solutions.
Blue Cross Blue Shield of Michigan has owned AF Group since 1994. The sale comes as the Detroit-based insurer faces mounting financial pressures, having reported a $1 billion loss in 2024 and a profit margin of -0.8% in the third quarter of 2025.
The company is working to reduce administrative expenses by $600 million over three years as it confronts rising medical and pharmacy costs. Last June, more than 500 employees took buyouts while another 600 positions were eliminated through redundancies and cancelled job openings.
Tricia Keith, president and chief executive of Blue Cross Blue Shield of Michigan, framed the divestment as a strategic move.
"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 our mission," Keith said.
AF Group will operate as a wholly owned subsidiary of Enstar following the transaction close, functioning largely independently under its current leadership team led by president and chief executive Lisa Corless.
The companies expect the transaction to close in the second half of 2026, subject to regulatory approvals and other closing conditions.
