BLUE CROSS BLUE SHIELD OF MICHIGAN SUBSIDIARY AF GROUP ANNOUNCES ACQUISITION OF AMERITRUST GROUP

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Apr 12, 2022, 11:57 ET

Acquisition integrates two nationally recognized, Michigan-based specialty insurance carriers

DETROIT, April 12, 2022 /PRNewswire/ -- AF Group, a wholly-owned subsidiary of Blue Cross Blue Shield of Michigan and a nationally-recognized holding company whose affiliated brands provide specialty and workers' compensation insurance solutions across the United States, has entered into a definitive agreement through its subsidiary Accident Fund Insurance Company of America to purchase AmeriTrust Group from Fosun. Headquartered in Southfield, Mich., AmeriTrust offers specialty insurance programs and products including workers' compensation, commercial package and automotive business coverages, and comprehensive product offerings in various industry segments. AmeriTrust is a financially strong company rated "A-" (Excellent) by A.M. Best. The acquisition is expected to be completed after obtaining regulatory approvals.

"With the acquisition of AmeriTrust, AF Group and its subsidiary brands continue to elevate their growth trajectory in the specialty insurance and workers' compensation market, while Blue Cross accelerates our efforts toward greater diversification beyond our traditional core health insurance offerings," said Daniel J. Loepp, Blue Cross Blue Shield of Michigan president and CEO. "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."

BCBSM's diversification efforts are benefiting health insurance members substantially – most recently in the company's response to the COVID-19 pandemic. Because of more than $900 million generated from BCBSM's investment portfolio and non-health lines of business in 2021, Blue Cross was able to absorb $860 million in COVID-19 costs for treatment, testing and vaccine administration without passing those costs through to fully-insured members' and customers' premiums in either 2021 or 2022.

With this acquisition, AF Group welcomes AmeriTrust's proven expertise in the property and casualty space to the Blue Cross enterprise and further enhances its successful specialty and workers' compensation products and its capabilities in other lines of insurance. The investment also reinforces AF Group's increasingly prominent position and reputation in the property and casualty insurance market, which has grown significantly over the last decade. AF Group is recognized for its financial strength as a Ward's 50 company and has earned an "A" (Excellent) rating by A.M. Best.

"This exciting acquisition aligns two world-class organizations toward a common goal of providing exceptional, customer-focused insurance products and services through our valued agents," said Lisa Corless, president and CEO of AF Group. "The reputation and performance of AmeriTrust is proven in the marketplace, and we're excited to welcome their exceptional team to our award-winning organization as we work together toward even greater success."

As private companies, BCBSM and AF Group do not disclose price associated with transactions of this nature. AF Group is using the strong balance sheet of Accident Fund Insurance Company of America to finance this transaction without other financial support provided by BCBSM.

About Blue Cross Blue Shield of Michigan
Blue Cross Blue Shield of Michigan, a nonprofit mutual insurance company, is an independent licensee of the Blue Cross and Blue Shield Association. BCBSM provides health benefits to more than 4.6 million members residing in Michigan in addition to employees of Michigan-headquartered companies residing outside the state. The company has been committed to delivering affordable health care products through a broad variety of plans for businesses, individuals and seniors for more than 80 years. Beyond health care coverage, BCBSM supports impactful community initiatives and provides leadership in improving health care. For more information, visit bcbsm.com and MiBluesPerspectives.com.

About AF Group
AF Group is a nationally recognized holding company whose affiliated insurance brands are premier providers of innovative, specialty insurance solutions offered through independent agents nationwide. All policies are underwritten by a licensed insurer subsidiary. Accident Fund Insurance Company of America is a division of AF Group. For more information, visit afgroup.com. © AF Group.

About Fosun
Founded in 1992, Fosun is a global innovation-driven consumer group dedicated to providing high-quality products and services for families around the world in Health, Happiness, Wealth and Intelligent Manufacturing segments. In 2007, Fosun International Limited was listed on the main board of the Hong Kong Stock Exchange (stock code: 00656.HK). In 2021, Fosun International's total revenue was RMB161.3 billion and total assets amounted to RMB806.4 billion. Fosun International ranks No.459 on the 2021 Forbes Global 2000 List, with a MSCI ESG rating of AA.

About AmeriTrust Group, Inc.
Founded in 1955, AmeriTrust Group, Inc. is a nationally recognized commercial insurance underwriter and insurance administration services provider in the commercial property and casualty insurance industry. AmeriTrust is comprised of four distribution segments of the insurance marketplace: admitted carrier operations, excess & surplus lines carrier operations, wholesale MGU/MGA and third-party administration operations, and retail insurance agency operations. AmeriTrust offers a broad range of insurance solutions, including specialty products to independent agencies, governmental entities, select industry, trade and professional associations, and affinity partners. Carrier operations include five insurance companies which are licensed on both an admitted and non-admitted basis. For more detail, visit www.ameritrustgroup.com.

SOURCE Blue Cross Blue Shield of Michigan