Aon is reportedly close to an agreement to acquire insurance brokerage USI Insurance Services from private equity firm KKR for approximately $17 billion, including debt. This potential deal, which could be announced as early as Monday, August 31, 2026, would represent one of the largest brokerage acquisitions in recent years and integrate USI, a major independent middle-market broker, into Aon's operations. USI, headquartered in Valhalla, New York, specializes in commercial insurance, employee benefits, and retirement services, primarily for mid-sized businesses, and generates roughly $3 billion in annual revenue.
KKR, along with the Canadian pension fund Caisse de dépôt et placement du Québec, acquired USI from Onex Corporation in 2017 for $4.3 billion, including debt. KKR has since invested over $1 billion, becoming the largest shareholder. A sale at around $17 billion would mark a substantial return for KKR, representing a significant windfall. This acquisition is seen as a strategic move for London-headquartered Aon, a global leader in insurance and reinsurance brokerage, to strengthen its foothold in the commercial insurance brokerage market and boost its capabilities in serving mid-sized businesses. The deal is expected to increase Aon's earnings per share as early as 2028.
For Aon, this acquisition aligns with its strategy of expanding through acquisitions, especially after its attempted merger with Willis Towers Watson collapsed in 2021 due to antitrust pressure. This type of bolt-on acquisition of a middle-market specialist is viewed as a more digestible form of expansion. GuruFocus' proprietary GF Value™ metric suggests that Aon's current share price of $355.40 is approximately 9.5% below its intrinsic value estimate of $392.55, indicating it is modestly undervalued. The GF Score™ for Aon is an impressive 96 out of 100, reflecting strong overall company quality and performance. However, some insider selling activity and the substantial debt involved in the deal warrant attention, highlighting both the company's strong fundamentals and potential near-term risks.
