Enstar to acquire AF Group, outlook remains stable

Bermuda-based legacy specialist Enstar Group, backed by Sixth Street, has agreed to acquire 100% of Accident Fund Holdings (AF Group) from Blue Cross Blue Shield of Michigan, strengthening its US platform through the transaction.

Headquartered in Lansing, Michigan, AF Group has provided insurance solutions through its affiliate brands for more than a century. Since its acquisition by Blue Cross in 1994, the organisation has strengthened its position in the US property and casualty market and now delivers commercial and specialty insurance solutions in all 50 states, with consolidated gross written premium of $3.3 billion in 2025.

The acquisition combines capabilities in property and casualty insurance, including workers’ compensation, leveraging Enstar’s balance sheet while expanding its suite of global re/insurance solutions to serve a broader client base. Blue Cross’s financial foundation and capital flexibility stand to strengthen, furthering its core commitment to delivering health care services to members and group customers. 

Upon completion of the transaction, expected in the second half of 2026, AF Group will become a wholly owned subsidiary of Enstar and operate largely as a standalone company, operating under its existing leadership team.

Following the announcement, Fitch has affirmed a stable ratings outlook, Long-Term Issuer Default Rating (IDR) at 'BBB+', senior unsecured notes at 'BBB', junior subordinated notes at 'BBB-' and preference shares at 'BBB-'. 

Dominic Silvester (pictured), Enstar’s CEO, said: “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 CEO, added: “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.”

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