Enstar, a global insurance and reinsurance group backed by investment vehicles managed by affiliates of Sixth Street, has entered into a definitive stock purchase agreement to acquire 100% of the shares of Accident Fund Holdings, Inc. (AF Group) from Blue Cross Blue Shield of Michigan.
The transaction is expected to be completed in the second half of 2026 upon receipt of regulatory approvals and satisfaction of various other closing conditions.
Upon completion, AF Group will become a wholly owned subsidiary of Enstar and operate largely as a standalone company, supported by Enstar.
With this in mind, AF Group is expected to continue operating under its existing leadership team, headquartered in Lansing, Michigan.
According to Enstar, the acquisition brings together complementary property and casualty capabilities, including workers’ compensation, and leverages its balance sheet strength to support AF Group’s continued growth, while expanding Enstar’s global re/insurance offering to serve a broader and more diversified client base.
Since its acquisition by Blue Cross in 1994, AF Group has reportedly strengthened its position in the US property and casualty market and now delivers commercial and specialty insurance solutions in all 50 states.
Dominic Silvester, Enstar’s Chief Executive Officer, commented on the acquisition news, “This transaction is a compelling live market opportunity that brings together two organisations with complementary strengths and common values. Enstar and our partners at Sixth Street are committed to working alongside AF Group as it executes its strategic plans.
“Our balance sheet strength, asset and liability management expertise, and strong financial strength ratings provide a solid platform for AF Group’s future, while enabling us to expand our offering of both prospective and retrospective insurance solutions.”
Lisa Corless, AF Group’s President and Chief Executive Officer, said, “This transaction combines our expertise, underwriting discipline and people-first culture with Enstar’s proven market experience and financial strength.
“Aligned with our core offerings and strong commitment to customer-centred service, this partnership will support continuity for agent partners, policyholders, and clients, and will enable us to build on our foundation of excellence.”
Corless 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.”
Tricia Keith, president and CEO of Blue Cross Blue Shield of Michigan, noted, “AF Group has grown and expanded to a point where it needs to be aligned with a parent organisation that has the potential to take it to even greater heights of success.
“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.”
Readers may recall that Enstar itself was acquired by Sixth Street in a $5.1 billion transaction back in 2024, with Liberty Strategic Capital, J.C. Flowers & Co. LLC, and other institutional investors participating in the deal.
