LANSING, Mich. (WLNS) — Blue Cross Blue Shield of Michigan has agreed to sell its workers’ compensation and specialty insurance subsidiary AF Group to Enstar Group, a global insurance and reinsurance company backed by investment vehicles managed by affiliates of investment firm Sixth Street.
The deal, announced Friday, is subject to regulatory approvals and other customary closing conditions and is expected to close in the fourth quarter of 2026. Financial terms were not disclosed, as all companies involved are privately held.
Blue Cross officials framed the sale as a move to shore up the nonprofit’s finances and refocus on its core health insurance business as medical costs continue to climb.
“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,” Tricia Keith, president and CEO of Blue Cross Blue Shield of Michigan, said in a statement. “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.”…