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Aon close to buying USI Insurance from KKR for $17bn

The London-headquartered broker would pay roughly 5.7 times USI's annual revenue of $3 billion. It is Aon's second major mid-market acquisition in little over a year, following its $13 billion purchase of NFP in 2024.
by Priya AnandBusiness1 Min Read
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Aon, the London-headquartered insurance and reinsurance broker, is close to buying USI Insurance from private-equity firm KKR for approximately $17 billion including debt, according to a Wall Street Journal report published on Sunday. The deal could be announced as soon as Monday.

USI Insurance, based in Valhalla, New York, generates roughly $3 billion in annual revenue. At that price, Aon would be paying about 5.7 times sales. Aon's own market value stood at roughly $75 billion as of Friday's close.

The acquisition would follow Aon's $13 billion purchase of NFP, another mid-market insurance broker, which closed in April 2024. Together the two deals reflect a clear strategic push: Aon is building out its capacity to serve medium-sized businesses, a segment traditionally less well covered by the largest global brokers.

For KKR, the New York-based private-equity firm, the sale marks a substantial return on a long-running investment. KKR and Canadian pension investor CDPQ acquired USI from private-equity firm Onex in 2017 for $4.3 billion. In September 2023, KKR committed more than $1 billion in additional capital to USI, becoming its single-largest shareholder. A sale at $17 billion would represent a multiple of roughly four times the original purchase price, even before accounting for that later investment.

The USI exit is one of several significant disposals KKR is currently managing. The firm is also selling CoolIT, its data-centre cooling business, and the commercial aerospace and defence division of Circor.

The deal is expected to be earnings-per-share accretive starting in 2028, according to the report. Details of the financing structure, any regulatory conditions, and a final closing date have not been disclosed.

The broader insurance brokerage market has seen persistent consolidation in recent years, with larger firms using acquisitions to deepen their mid-market presence. Aon's two sizeable deals place the firm at the centre of that trend, though the integration of two large platforms will test its execution capabilities. Those questions remain open for now.

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Priya AnandBusiness

Priya Anand explains business and finance for readers who suspect it is mostly footnotes and incentives — and are usually right. Dry-witted, deep in the mechanics, and quietly delighted by a clever piece of financial engineering.

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