Enstar Group Acquires AF Group to Enhance U.S. Insurance Operations

Enstar Group Expands U.S. Presence with Acquisition of AF Group

Enstar Group, a leading entity in the reinsurance industry, has signed an agreement to acquire AF Group from Blue Cross Blue Shield of Michigan. This strategic acquisition aims to bolster Enstar’s property and casualty insurance offerings across the United States. The deal will be executed through a stock purchase agreement, though the financial specifics remain undisclosed.

Headquartered in Lansing, Michigan, AF Group operates nationwide, offering commercial and specialty insurance solutions. Its brands, including Accident Fund, United Heartland, CompWest, and Third Coast, make it a formidable player in the workers' compensation insurance sector. In 2025, AF Group recorded a consolidated gross written premium of $3.3 billion, highlighting its industry prominence.

This acquisition marks a pivotal shift for Enstar Group, extending beyond its established expertise in retrospective reinsurance solutions such as legacy portfolio transactions and loss portfolio transfers. Following its transition to private ownership in 2024, when investment vehicles managed by Sixth Street acquired it for approximately $5.1 billion, Enstar is poised for growth. As of June 2025, Enstar held over $22 billion in total assets and $6.4 billion in shareholders' equity, having executed more than 130 transactions since its inception.

Complementary Strengths and Industry Expertise

Enstar CEO Dominic Silvester commented on the acquisition, describing it as “a compelling live market opportunity” that unites two organizations with complementary strengths and common values. He emphasized Enstar's robust financial ratings and balance sheet, which would support AF Group’s growth and expansion of insurance solutions, aligning with regulatory compliance requirements.

Blue Cross Blue Shield of Michigan, which acquired AF Group in 1994, cited strategic reasons for the divestment. The decision was influenced by financial challenges, including a $1 billion loss in 2024 and a negative profit margin reported in the third quarter of 2025. In response to rising medical and pharmacy expenses, the company aims to reduce administrative costs by $600 million over three years.

Blue Cross Blue Shield of Michigan's President and CEO, Tricia Keith, remarked that the agreement enhances the financial framework necessary for the insurer to uphold its mission amid escalating healthcare costs. Following the acquisition, AF Group will continue as a wholly owned subsidiary of Enstar, maintaining operational independence under the leadership of its current President and CEO, Lisa Corless. The acquisition is expected to close in the latter half of 2026, pending regulatory approvals and fulfillment of closing conditions.