Aon to Acquire USI for $17B to Expand U.S. Mid-Market Insurance Footprint
Aon plc has agreed to acquire USI Insurance Services from KKR and other shareholders for $17 billion in cash, extending the insurance brokerage giant’s push into the U.S. middle market following its 2024 purchase of NFP.
USI is the 10th-largest U.S. insurance broker, with approximately $3 billion in annual revenue, more than 10,500 employees and nearly 200 offices. The Valhalla, New York-based company provides property and casualty insurance, employee benefits, personal risk and retirement services.
The acquisition would deepen Aon’s presence in a U.S. middle-market insurance segment valued at more than $40 billion and representing over one-third of domestic commercial property and casualty direct written premiums, according to the company.
It would also expand Aon’s health, talent and human capital advisory operations and increase its exposure to excess-and-surplus insurance. The E&S market, which serves complex or nonstandard risks generally not covered by traditional insurers, represents about 26% of U.S. commercial property and casualty premiums.
“Building on the success of our acquisition of NFP, USI will substantially enhance our middle-market footprint,” Aon CEO Greg Case said.
After closing, USI Chairman and CEO Mike Sicard will become president of Aon and global CEO of Middle Market. He will report to Case and join Aon’s executive committee.
Aon expects the transaction to close in the fourth quarter. The company plans to finance the purchase and related expenses with debt issued across several maturities. The transaction is expected to increase Aon’s adjusted earnings per share beginning in 2028.
Aon’s regulatory filing describes the purchase price as $17 billion in cash, subject to potential downward adjustments.
The deal follows Aon’s approximately $13 billion acquisition of NFP and reflects continued consolidation in the fragmented insurance brokerage market. KKR acquired USI with Canadian pension investor CDPQ in 2017 for $4.3 billion.
BofA Securities and Citi served as financial advisors to Aon on the transaction. Cravath, Swaine & Moore LLP acted as legal counsel to Aon, McDermott Will & Schulte LLP acted as legal advisor to Aon with respect to regulatory matters and Skadden, Arps, Slate, Meagher & Flom is acting as financing counsel to Aon.
