Stock Markets August 31, 2026 06:48 AM

Aon to Acquire USI Insurance Services in $17 Billion Transaction

Deal aims to deepen Aon’s middle-market footprint and expand access to excess & surplus lines

By Sofia Navarro
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AON BRO AJG KKR

Aon has agreed to buy USI Insurance Services from private equity firm KKR for $17 billion, a move the broker says will establish a leading U.S. middle-market platform and expand its presence in excess and surplus insurance. The transaction, advised by major banks on both sides, is expected to close in the fourth quarter of 2026 and to contribute to adjusted profit in 2028.

Aon to Acquire USI Insurance Services in $17 Billion Transaction
AON BRO AJG KKR
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Key Points

  • Aon will acquire USI Insurance Services from KKR for $17 billion to expand its U.S. middle-market capabilities and E&S access.
  • The transaction is expected to close in the fourth quarter of 2026 and to be accretive to adjusted profit in 2028.
  • The deal follows a wave of large consolidation in the insurance brokerage sector, including recent multi-billion-dollar purchases by Arthur J. Gallagher and Brown & Brown.

Aon announced on Monday that it will acquire rival USI Insurance Services from KKR for $17 billion. The transaction, which mirrors recent large-scale consolidations in the fragmented insurance brokerage sector, is positioned to strengthen Aon’s reach in the U.S. middle market - the segment serving mid-sized businesses.

Strategic rationale

According to Aon’s statement, the combination with USI is designed to create what the company describes as the premier U.S. middle-market platform. The buyer said the acquisition will deepen its contextual advantages and accelerate organic growth, while broadening its access in the excess and surplus - or E&S - segment.

Aon noted that the deal builds on the firm’s earlier purchase of NFP, a middle-market property and casualty broker acquired for $13 billion in 2024. Aon also highlighted USI’s breadth of services, which include property and casualty, employee benefits, personal risk, program and retirement offerings.

Industry context and precedent

Large buyouts have become more frequent in the insurance brokerage industry as firms pursue scale in a fragmented market and show greater willingness to pay premium prices to expand market share and capabilities. Examples cited in the industry include Arthur J. Gallagher’s $13.5 billion acquisition of AssuredPartners and Brown & Brown’s nearly $10 billion purchase of Accession Risk Management, both completed last year.

Ownership background and financial timing

USI, founded in 1994 and headquartered in Valhalla, New York, was acquired in 2014 in a $4.3 billion transaction by KKR and the Caisse de de9pf4t et placement du Que9bec. Since that purchase, KKR increased its stake and became the largest shareholder. For KKR the USI sale contributes to a broader uptick in exit activity; the firm reported that the second quarter was the largest monetization quarter in its history.

The transaction between Aon and KKR is anticipated to close in the fourth quarter of 2026. Aon expects the deal to be accretive to adjusted profit by 2028.

Advisers

BofA Securities and Citi served as advisers to Aon on the transaction. KKR was advised by Goldman Sachs, Insurance Advisory Partners and Morgan Stanley.


Market footprint

Aon, one of the world’s largest insurance brokers, serves clients in more than 120 countries and provides guidance on managing complexity and volatility for corporate and institutional clients.

Risks

  • Timing risk - the deal is expected to close in the fourth quarter of 2026, leaving completion dependent on future conditions that could affect that schedule. This impacts the insurance brokerage sector.
  • Earnings timing - Aon anticipates the acquisition will boost adjusted profit in 2028, which creates execution risk if integration or market conditions influence projected accretion. This affects equity investors and corporate earnings in the insurance sector.
  • Exit and market activity reliance - KKRe28099s return on the sale contributes to a recent increase in exit activity, and future monetization trends could change, affecting private equity and investment markets.

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