Aon to acquire insurance broker USI for $17 billion
Insurance broker Aon announced its intention to acquire competitor USI Insurance Services from private investment firm KKR for $17 billion. The deal is planned to be financed with new Aon debt, and its closing is expected in the fourth quarter after receiving the necessary regulatory approvals, CNBC Top News reports.
Bet on US middle-market businesses
Aon CEO Greg Case said on CNBC that the combination is intended to create a leading US platform for serving middle-market businesses. According to him, the company will be able to provide world-class solutions to the mid-sized enterprise segment, which he described as insufficiently served by such services.
Case noted that this concerns approximately 200,000 US middle-market companies and their 48 million employees. He also said the deal has significant potential to create value for Aon shareholders.
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USI’s position and personnel changes
According to the deal’s press release, USI is the tenth-largest insurance broker in the United States. The company has more than $3 billion in annual revenue and over 10,500 employees.
Following the completion of the acquisition, USI CEO Mike Sicard will become Aon’s president and global head of its middle-market business. The purchase of USI continues Aon’s expansion in this segment: in 2024, the company acquired another broker, NFP, which also specializes in serving the US middle market.
In premarket trading on Monday, Aon shares fell by about 1%.
