Blue Cross Blue Shield of Michigan has agreed to sell its AF Group subsidiary to Enstar Group, a global insurance and reinsurance group, the companies said Feb. 13.
AF Group is a national provider of workers’ compensation and specialty insurance products. BCBS Michigan acquired the company in 1994, when it was a state-owned, single-state workers’ compensation provider. AF Group wrote $2.9 billion in direct premiums in 2024.
BCBS Michigan CEO Tricia Keith said the sale strengthens the insurer’s financial position. In 2025, the company said it is working to reduce administrative expenses by $600 million over the next three years as it faces rising medical and pharmacy costs. The company reported a $1 billion loss in 2024. In the third quarter of 2025, its profit margin was -0.8%.
AF Group will continue to operate largely as a standalone company under Enstar, maintaining its Lansing headquarters. The deal is expected to close in the fourth quarter.
