Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On October 12, 2018, the company announced the terms of an agreement to acquire all of the shares of MSP Underwriting Limited (MSP) in an all-cash transaction for £102 million based on MSP's projected net asset value at closing, or approximately $134 million based upon the October 9, 2018, exchange rate of 1.31 U.S. dollars per Pound Sterling (GBP). MSP, which operates through Beaufort Underwriting Agency Limited, is a London based global specialty underwriter and Munich Re subsidiary. The acquisition will provide the company with opportunities to support its independent agencies in new geographies and lines of business.

On October 10, 2018, the company entered into a foreign exchange forward contract which provides for an economic hedge between the agreed upon purchase price in GBP and currency fluctuations between the U.S. dollar and GBP during the period from that date through December 31, 2018.

The company expects that the transaction will close during the first quarter of 2019, subject to regulatory approvals and other customary terms and conditions.

There were no subsequent events requiring adjustment to our condensed consolidated financial statements and, with the exception of the above disclosure, no additional disclosures required in the notes to our condensed consolidated financial statements.