Aon to Acquire USI Insurance Services in $17 Billion Deal

Aon PLC announced on Monday it will acquire rival brokerage USI Insurance Services from private equity firm KKR in a deal valued at $17 billion. The acquisition is a major strategic move to significantly expand Aon's presence in the U.S. middle-market insurance sector, which serves mid-sized businesses.

Strategic Rationale and Deal Terms

The deal is expected to close in the fourth quarter of 2026 and is anticipated to be accretive to Aon's adjusted profit beginning in 2028. The acquisition builds on Aon's recent expansion efforts, including its $13 billion purchase of middle-market property and casualty broker NFP in 2024.

"Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth," Aon CEO Greg Case said in a statement. He added that the deal would also expand the firm's access to the excess & surplus (E&S) market.

Trend of Brokerage Consolidation

This transaction is the latest in a series of "mega buyouts" transforming the highly fragmented insurance brokerage industry. Major players have been pursuing large-scale acquisitions to bolster market share and enhance their competitive positions.

Other recent examples of this trend include:

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• Arthur J. Gallagher’s $13.5 billion acquisition of AssuredPartners.
• Brown & Brown’s nearly $10 billion purchase of Accession Risk Management.

Both of those deals were finalized last year, according to reports.

Background on USI and KKR

For KKR, the sale marks a significant exit. The private equity firm, along with Canadian pension fund Caisse de dépôt et placement du Québec, acquired USI in 2014 for $4.3 billion. KKR subsequently became the largest stakeholder in the brokerage.

Founded in 1994 and based in Valhalla, New York, USI offers a range of services including property and casualty, employee benefits, and retirement consulting. BofA Securities and Citi advised Aon on the deal, while Goldman Sachs, Insurance Advisory Partners, and Morgan Stanley advised KKR.