AM Best Comments on Credit Ratings of Blue Cross Blue Shield of Michigan Mutual Insurance Company

Acquisition of AF Group expected to close in late 2026 to early 2027

Published on Feb. 25, 2026

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AM Best has commented on the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Ratings of 'a' (Excellent) of Blue Cross Blue Shield of Michigan Mutual Insurance Company (BCBS MI) and its subsidiary Blue Care Network of Michigan. The outlook of these Credit Ratings is negative. BCBS MI announced it has entered into an agreement to acquire AF Group, which is expected to close in late 2026 to early 2027 pending regulatory approvals.

Why it matters

The acquisition will make BCBS MI less diversified in its operations, but the company maintains leading market positions in Michigan's health insurance market. AM Best will continue to monitor BCBS MI's operations and the impact of the transaction on the group's risk-adjusted capitalization, earnings, business profile and risk management.

The details

BCBS MI announced on Feb. 13, 2026, that it has entered into a definitive agreement with Enstar Group Limited to acquire AF Group and its subsidiaries. The transaction is expected to close in late 2026 to early 2027 and is subject to various regulatory approvals and customary closing conditions. AM Best does not expect the transaction to have any material change to BCBS MI's rating fundamentals at this time.

  • BCBS MI announced the acquisition agreement on February 13, 2026.
  • The transaction is expected to close in late 2026 to early 2027.

The players

Blue Cross Blue Shield of Michigan Mutual Insurance Company

A leading health insurance provider in Michigan.

Blue Care Network of Michigan

A subsidiary of Blue Cross Blue Shield of Michigan Mutual Insurance Company.

Enstar Group Limited

The company that BCBS MI is acquiring AF Group from.

AF Group

The company that BCBS MI is acquiring from Enstar Group Limited.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This acquisition will allow BCBS MI to focus on its core health insurance offerings in Michigan, where it maintains leading market positions, though it will make the company less diversified in its operations. AM Best will continue to monitor the impact of the transaction on BCBS MI's financial strength and risk profile.