Full Breakdown
Aon Nears $17 B Acquisition of USI Insurance Services
8/31/2026, 1:54:52 AM
Core Event
Aon plc is in advanced negotiations to purchase USI Insurance Services from private-equity firm KKR in a transaction valued at roughly $17 billion, including debt. Sources familiar with the talks say an announcement could be made soon. The deal would rank among the largest recent acquisitions in the insurance-brokerage sector.
Background & Context
USI, headquartered in Valhalla, New York, provides insurance brokerage, risk-management, employee-benefits and retirement-consulting services and generates about $3 billion in annual revenue. KKR first acquired USI in 2017 from Onex for $4.3 billion, alongside Canada’s Caisse de Dépôt et Placement du Québec (CDPQ). Over the next nine years KKR increased its stake, becoming the firm’s largest shareholder in 2023 after injecting more than $1 billion of additional capital.
Aon, with a market capitalization of roughly $75 billion, is the world’s second-largest insurance broker by revenue ($15.4 billion in 2026), behind Marsh & McLennan Companies ($25.3 billion). The company previously expanded its middle-market platform by acquiring NFP for about $13 billion in 2024, integrating NFP as an independent brand within Aon’s global network.
Timeline
- 2017 – KKR and CDPQ purchase USI for $4.3 billion.
- 2023 – KKR becomes USI’s largest shareholder after a $1 billion capital infusion.
- 2024 – Aon completes a $13 billion acquisition of middle-market broker NFP.
- July 29 2026 – Aon reports second-quarter adjusted earnings of $3.81 per share, beating estimates; its stock later falls 5.6 % to $355.40.
- June 2026 – KKR records a quarterly asset-sale total of $1.29 billion, its highest ever.
Data & Statistics
- Deal value: ~ $17 billion (including debt).
- Revenue multiple: Approximately 5.7 times USI’s annual sales.
- USI revenue: About $3 billion (global); $2.79 billion in U.S. brokerage revenue for 2024, ranking 11th among U.S. brokers.
- Industry M&A activity: 241 announced U.S. insurance-sector transactions as of May 2026, a 5.1 % decline year-over-year.
Official Statements & Responses
- People familiar with the transaction indicated that Aon and KKR could finalize the agreement and issue a public announcement soon.
- Aon’s recent earnings release showed adjusted earnings of $3.81 per share for Q2 2026, surpassing analyst expectations, after which the stock declined 5.6 % to $355.40.
- KKR disclosed that its quarterly asset-sale total reached a record $1.29 billion, reflecting a broader strategy of realizing returns on portfolio investments.
Why It Matters
The acquisition would deepen Aon’s presence among midsize corporate clients, adding USI’s commercial and personal-lines capabilities to Aon’s existing risk-management, reinsurance, health and retirement services. By expanding its middle-market platform, Aon aims to boost earnings per share as early as 2028, leveraging scale to access more carriers, data assets and specialized advisory expertise.
For KKR, the sale would deliver a roughly fourfold increase in USI’s enterprise value over nine years, representing a significant return on its long-term investment. The transaction also underscores the continued consolidation trend in the insurance-brokerage industry, where larger platforms seek cost efficiencies and broader market reach despite a modest slowdown in overall deal activity.
What’s Next
If the parties complete their negotiations, an official announcement is expected shortly. The deal will then be subject to customary regulatory approvals and shareholder votes before closing.
