British insurance and pension giant Aon (AON) is buying rival USI Insurance Services in a deal valued at $17 billion U.S.
Aon is acquiring USI Services from private equity firm KKR (KKR), which has owned USI Insurance Services for several years.
KKR and Canadian pension fund Caisse de dépôt et placement du Québec bought New York-based USI Insurance Services in a $4.3 billion U.S. deal back in 2014.
Founded in 1994, USI is an insurance brokerage and consulting firm that offers property and casualty, employee benefits, personal risk, program and retirement services.
Mergers and acquisitions have become common in the insurance brokerage industry as companies look to boost their market share in a highly competitive industry.
With the purchase of USI, Aon is trying to expand its presence in the fast-growing middle-market insurance segment, which caters to mid-sized businesses.
Over the past decade, Aon has bought several insurance and consulting firms, including its $13 billion U.S. acquisition of middle-market property and casualty broker NFP in 2024.
Other recent deals in the insurance sector include Arthur J. Gallagher’s (AJG) $13.5 billion U.S. purchase of AssuredPartners and Brown & Brown’s (BRO) $10 billion U.S. acquisition of Accession Risk Management.
Aon is one of the world’s largest insurance brokers and caters to clients in more than 120 countries. The purchase of USI Insurance Services is expected to close by year’s end.
AON stock has declined 5% over the last 12 months to trade at $355.40 U.S. per share.
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