Business Combinations (Tables)

3 Months Ended

Mar. 31, 2023

Business Combinations [Abstract]

Estimated Fair Values of Aggregate Assets and Liabilities Acquired

The following table summarizes the estimated fair values of the aggregate assets and liabilities acquired through the three months ended March 31, 2023 as of the date of each acquisition and adjustments made during the measurement period of the prior year acquisitions.

	Three months ended March 31, 2023
(in millions)	Other (1)			Total
Cash paid	$	44.7		$	44.7
Other payable		0.2			0.2
Recorded earn-out payable		19.6			19.6
Total consideration		64.5			64.5
Maximum potential earn-out payable		21.1			21.1
Allocation of purchase price:
Cash and equivalents		3.3			3.3
Fiduciary cash		3.8			3.8
Fiduciary receivables		3.3			3.3
Other current assets		2.6			2.6
Fixed assets		0.2			0.2
Goodwill		23.0			23.0
Purchased customer accounts and other		16.6			16.6
Other assets		0.2			0.2
Total assets acquired		53.0			53.0
Fiduciary liabilities		(7.1	)		(7.1	)
Other current liabilities		(3.8	)		(3.8	)
Deferred income tax, net (2)		23.9			23.9
Other long-term liabilities		(1.5	)		(1.5	)
Total liabilities assumed		11.5			11.5
Net assets acquired	$	64.5		$	64.5

(1)The other column represents current year acquisitions with total net assets acquired of less than $50.0 million and adjustments from prior year acquisitions that were made within the permitted measurement period.

(2)The Company has revised the provisional amounts in the measurement period for items for which the accounting was incomplete. Additional time was needed to obtain the information necessary, present at the date of the acquisition, to recognize and measure all the items exchanged related to the acquisition of Orchid Underwriters Agency and CrossCover Insurance Services.

Additions, Payments, and Net Changes, as well as Interest Expense Accretion on Estimated Acquisition Earn-Out Payables

The resulting additions, payments, and net changes, as well as the interest expense accretion on the estimated acquisition earn-out payables, for the three months ended March 31, 2023 and 2022, were as follows:

	Three months ended March 31,
(in millions)	2023			2022
Balance as of the beginning of the period	$	251.6		$	291.0
Additions to estimated acquisition earn-out payables		19.6			10.8
Payments for estimated acquisition earn-out payables		(16.1	)		(46.9	)
Subtotal		255.1			254.9
Net change in earnings from estimated acquisition earn-out payables:
Change in fair value on estimated acquisition earn-out payables		(4.2	)		(4.8	)
Interest expense accretion		1.9			1.4
Net change in earnings from estimated acquisition    earn-out payables		(2.3	)		(3.4	)
Foreign currency translation adjustments during the year		1.4			(0.6	)
Balance as of March 31,	$	254.2		$	250.9

Unaudited Proforma Results

These unaudited pro forma results are not necessarily indicative of the actual results of operations that would have occurred had the acquisitions actually been made at the beginning of the respective periods.

(UNAUDITED)	Three months ended March 31,
(in millions, except per share data)	2023		2022
Total revenues	$	1,116.3	$	907.7
Income before income taxes	$	294.3	$	265.8
Net income	$	235.6	$	221.0
Net income per share:
Basic	$	0.83	$	0.78
Diluted	$	0.83	$	0.78
Weighted average number of shares outstanding:
Basic		278.6		277.1
Diluted		279.4		278.6