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 (Detroit, MI) and Blue Care Network of Michigan (Southfield, MI) (collectively known as BCBS MI). The outlook of these Credit Ratings (ratings) is negative (see related press release).

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. While the company will be less diversified in its operations, the AF Group sale will allow BCBS MI to focus on core health insurance offerings, in which BCBS MI maintains leading market positions in the state.

Given the extent of regulatory approval needed for this transaction, AM Best will continue to evaluate each of these organizations independently while monitoring the progress over time. In addition, AM Best will continue to monitor BCBS MI’s operations and this latest transaction for further impacts on the group’s risk-adjusted capitalization, earnings, business profile and risk management.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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