Sixth Street-backed reinsurer Enstar Group has agreed to acquire 100% of Accident Fund Holdings (AF Group) from Blue Cross Blue Shield of Michigan.

Financial terms of the deal remain undisclosed.

Based in Lansing, Michigan, AF Group has a long history in the insurance sector, operating through various affiliate brands for more than 100 years.

Under the ownership of Blue Cross Blue Shield of Michigan since 1994, the company has expanded across all 50 US states and now provides commercial and specialty insurance.

In 2025, AF Group reported consolidated gross written premiums of $3.3bn.

AF Group president and CEO Lisa Corless 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.”

Post completion of the deal, AF Group will become a wholly owned subsidiary of Enstar and continue operating independently with its current leadership team.

Completion of the deal is anticipated in the second half of 2026, contingent on regulatory approvals and other closing conditions.

Enstar CEO Dominic Silvester 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.”

Last year, legacy specialist Enstar went private after its acquisition by investment vehicles managed by affiliates of Sixth Street for an equity value of $5.1bn.