Aon's $17B USI Deal
Insurance giant Aon to acquire USI for $17 billion, boosting earnings per share and expanding reach into midsize businesses with USI's $3 billion annual revenue
Aon is nearing a deal to acquire insurance brokerage USI from private-equity firm KKR for roughly $17 billion. This acquisition would help Aon extend its reach into midsize businesses and boost earnings per share.
USI has about $3 billion in annual revenue, making it a significant addition to Aon's portfolio. KKR, which bought USI from private-equity firm Onex in 2017, is set to reap a substantial return on its investment.
Aon has a market capitalization of $75 billion, and the deal is expected to close in the fourth quarter of 2026. The company recently reported second-quarter adjusted earnings of $3.81 per share on July 29. However, Aon's stock has fallen by 5.6% since reporting second-quarter earnings.
USI was founded in 1994 and has established itself as a major player in the insurance brokerage industry. The acquisition by Aon is expected to further solidify its position in the market.
## Why it matters The deal is significant not only for Aon and USI but also for the private-equity firm KKR, which reported a record $1.29 billion in asset sales for the quarter that ended in June. The acquisition is expected to have a substantial impact on the insurance industry, with Aon's expanded reach into midsize businesses likely to boost its earnings per share.
The acquisition has also led to analysts reevaluating Aon's stock price target, with Mizuho and BMO cutting their targets following the announcement of the $17 billion USI acquisition. As the deal is set to close in the fourth quarter of 2026, investors will be closely watching Aon's performance and the impact of the acquisition on its earnings per share.
