Enstar Group Ltd has agreed to acquire Accident Fund Holdings Inc, an American insurer known as AF Group, in a move that expands the Bermudian company’s footprint in the property and casualty insurance market.

The legacy re/insurance group said it has signed a definitive agreement to purchase 100 per cent of AF Group from Blue Cross Blue Shield of Michigan. Financial terms were not disclosed.

AF Group, headquartered in Lansing, Michigan, provides commercial and speciality insurance across all 50 United States and reported consolidated gross written premiums of $3.3 billion in 2025.

Enstar said the acquisition will combine the companies’ complementary property and casualty insurance capabilities, including workers’ compensation, while using Enstar’s balance sheet strength to support AF Group’s business and broaden its range of insurance and reinsurance services.

Once the transaction closes, AF Group will operate as a wholly owned subsidiary of Enstar and is expected to continue largely as a stand-alone business under its existing leadership team.

Dominic Silvester, Enstar’s chief executive, described the deal as an opportunity to bring together two organisations with aligned strengths.

“This transaction is a compelling live market opportunity that brings together two organisations with complementary strengths and common values,” Mr Silvester said.

“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.”

Enstar — which was itself acquired by Sixth Street last year for $5.1 billion — is a dominant force in legacy and run-off reinsurance, particularly in North America. A recent AM Best report noted that the company had accounted for about 20 per cent of all North American non-life run-off transactions since 2016.

Lisa Corless, president and CEO of AF Group, said the deal would support continued growth while maintaining service for policyholders and agents.

“This partnership will support continuity for agent partners, policyholders and clients, and will enable us to build on our foundation of excellence,” Ms Corless said.

The transaction is expected to close in the second half of 2026, subject to regulatory approvals and other customary conditions.

Enstar has completed more than 130 deals since it was founded. The group reported more than $22 billion in total assets as of mid-2025.