Berkshire Hathaway subsidiary National Indemnity Company is snatching up Medical Liability Mutual Insurance Company for an undisclosed price.

The deal will close in the 2017 third quarter, pending the usual closing conditions and regulatory approval processes. MLMC disclosed the news in a lengthy press release posted on its web site. Its agreement to be acquired comes as the insurer completes its conversation from a mutual company to a stock insurer.

Berkshire Hathaway CEO Warren Buffett, quoted in the release, called MLMIC “a gem of a company that has protected New York’s physicians, mid-level providers, hospitals and dentists like no other for over 40 years.” He said the acquisition will help boost the insurer’s “capacity to serve these and other policyholders for many years to come.”

MMLMIC reported a $1.8 billion policyholders’ surplus as of Dec. 31, 2015. The insurer is the largest underwriter of medical professional liability insurance in New York.

The purchase price could be around $2.7 billion, KBW analysts led by Meyer Shields estimated in a note to clients Monday. That figure assumes no major attrition of policyholders after the acquisition is completed, they said.

Once the deal is completed, each owner of an eligible MLMIC policy will be entitled to receive a proportionate share of all of the cash consideration paid by National Indemnity Company.

MLMIC President Robert Menotti said the acquisition will allow MLMIC to expand.

“MLMIC will be able to expand its offerings, with more customized policy limits, with more customized policy limits, risk-sharing features and services to groups, facilities and other large accounts,” Menotti said in a letter to policyholders quoted in the press release.

Menotti added that Berkshire Hathaway is also committed to keeping MLMIC’s culture and approach.

“Berkshire Hathaway values our operations, board, staff and endorsed partners,” Menotti said. “Most importantly, Berkshire Hathaway is committed to MLMIC’s future success and its ongoing dedication to serving policyholders.”

Keefe, Bruyette & Woods, a Stifel Company, served as financial advisor, and Wilkie Farr & Gallagher LP served as legal counsel to MLMIC for the deal.

*Material from Bloomberg was used for this story.

Source: MLMIC