Blue Cross Blue Shield subsidiary AF Group will purchase Southfield, Mich.-based AmeriTrust Group for an undisclosed amount.
The Detroit-based payer aims to diversify its plans beyond healthcare by incorporating AmeriTrust's specialty insurance offerings in workers' compensation, commercial packages and automotive business. The payer says the merger with Lansing, Mich.-based AF Group will also reinforce its position in the property and casualty insurance market, according to an April 12 press release.
"Our evolution into a multi-business enterprise with national scale supports our efforts to provide affordable health insurance to our customers and members, by making Blue Cross less reliant on their premiums and administrative fees for our revenue," Blue Cross Blue Shield of Michigan President and CEO Daniel Loepp said.
The purchase from Chinese conglomerate Fosun is expected to be completed after regulatory approvals.