Aon Agrees to Buy Insurance Brokerage USI from KKR for $17 Billion
Insurance giant Aon announced Monday it will acquire rival insurance brokerage USI Insurance Services from private equity firm KKR for approximately $17 billion including debt, marking one of the largest insurance industry deals in recent years. USI, the tenth-largest U.S. insurance broker, generates about $3 billion in annual revenue and serves mid-sized businesses across the country. The purchase extends Aon's strategy to dominate the middle-market insurance segment, following its 2024 acquisition of NFP for $13 billion. The combined operations would create an estimated $6.5 billion in annual revenue platform. Aon expects the deal to close in the fourth quarter of 2026 pending regulatory approval and forecasts $395 million in annual synergy benefits. The transaction will be funded with new debt, diluting earnings per share in 2027 before becoming accretive in 2028. USI CEO Mike Sicard will become president and global CEO of Aon's middle-market division upon closing.
Key facts
- Aon acquiring USI Insurance Services for $17 billion including debt from KKR
- USI is the tenth-largest U.S. insurance broker with approximately $3 billion in annual revenue
- Deal expected to close in Q4 2026 subject to regulatory approval
- Combined middle-market platform projected to generate $6.5 billion in annual revenue
- Aon targets $395 million in net adjusted EBITDA synergies by 2029
- This is Aon's second mega-deal in two years, following NFP acquisition for $13 billion in 2024
- Transaction will dilute 2027 earnings per share but become accretive in 2028
Limits of this briefing
Coverage focused primarily on financial and strategic aspects rather than broader policy implications. Limited publicly available analysis of potential regulatory hurdles, though Aon's previous 2021 Willis Towers Watson merger collapsed due to DOJ antitrust objections. Industry consolidation trends merit sustained monitoring for competition policy implications.
Sources
- CNBC: Aon CEO says USI deal seeks to build 'premiere middle market' insurance platform Centre
- Bloomberg: Aon Nears Deal to Buy Insurance Brokerage From KKR, WSJ Reports Centre
- Reuters: Aon strikes $17 billion deal for rival USI Insurance Services Centre
- Insurance Business Magazine: Aon confirms $17 billion USI acquisition to build midmarket platform Centre
- InvestmentNews: Aon confirms $17B deal to acquire USI Insurance from KKR Centre