Insurance broker Aon to acquire USI from KKR for $17 billion

ロイター·31 Aug 2026·

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M&A · Partnership Capital Markets

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Insurance broker Aon announced on the 31st that it will acquire USI Insurance Services, a U.S. peer, from private equity firm KKR for approximately $17 billion. This is one of the largest deals in the insurance industry in recent years. Through this acquisition, Aon will further strengthen its business foundation in the growing U.S. middle-market insurance sector. CEO Greg Case said that USI will significantly enhance its presence in the middle-market segment and expand opportunities in the excess and surplus lines business. The U.S. middle-market insurance market is estimated to be over $40 billion, accounting for more than one-third of U.S. commercial property and casualty direct premiums written. Aon previously acquired NFP, a middle-market insurance broker, for about $13 billion in 2024, and this acquisition will also bolster its health, talent, and human capital advisory businesses. USI, founded in 1994, is an insurance brokerage and consulting firm that has grown into the 10th largest insurance intermediary in the U.S. with annual revenue of about $3 billion. The insurance brokerage industry has seen a series of large deals recently, including Arthur J. Gallagher's acquisition of AssuredPartners for $13.5 billion and Brown & Brown's acquisition of Accession Risk Management for about $10 billion. The acquisition is expected to close in the fourth quarter and is projected to boost Aon's adjusted earnings by 2028. The deal will be financed with debt, and the company plans to suspend share buybacks for the time being to prioritize debt repayment. USI CEO Mike Sicard will become president of Aon and global CEO of its middle-market division upon completion of the acquisition. For KKR, the sale of USI represents a major investment exit, and KKR recorded its largest quarterly realized proceeds in the second quarter. USI was acquired by KKR and Canadian pension fund manager CDPQ in 2017 for about $4.3 billion, with KKR later increasing its stake to become the largest shareholder. During KKR's ownership, USI's revenue grew approximately threefold. According to KKR, the deal is expected to generate a return of about six times its initial 2017 investment and about 3.4 times on a total invested capital basis, with approximately $2 billion in adjusted earnings from the transaction.

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