The insurance broker attracted the investment of NYSE-listed buyout giant in 2017 on the ground of an enterprise value of 4.3 billion. Since then USI closed more than 90 acquisitions and tripled its turnover. AON will finance the deal with debt
NYSE-listed private capital giant KKR said it signed for the sale of USI Insurance Services to NYSE-listed AON for 17 billion US Dollars in cash (16.7 billion US Dollars net of tax benefits in the region of 278 million) or 14.5X the 12-month trailing adjusted ebitda (TTM). The vendor will fetch net proceeds in the region of 3.3 billion US Dollars for an implicit equity value implying a 6X return on the 2017 investment or 3.4X total capital that the fund poured in the USI throughout the entire period of holding in the portfolio (KKR press release, AON press release and investors presentation).
The contribution to KKR portfolio performance push this exit’s yield to 3.9X. The firm said in its investors presentation that during its portfolio lifecycle, the asset generated 550 million in carried interest, management fee, Strategic Holdings operating earnings, capital markets transaction fees, and transaction & monitoring fees.
USI was the first investment under KKR’s Core Private Equity strategy and is now part of Strategic Holdings, the segment through which the firm holds directly in its balance sheet stakes in sustainable assets that are less cyclical and capable of creating value over the long term.
KKR, Canada’s Caisse de dépôt et placement du Québec (CDPQ), the target’s employees and managers acquired USI in 2017 from Onex Corporation on the ground of an enterprise value of 4.3 billion (press release). KKR and CDPQ initially purchased even stakes, but the fund increased its holding in 2020. In 2023, the buyout fund poured in the asset equity worth above one billion US Dollars for replacing CDPQ and other investors and becoming the majority owner of USI whilst management and employees retained a significant stake. In 2025, KKR invested a further 1.1 billion US Dollars for increasing its stake and strengthening Strategic Holdings.
During its nearly ten years in KKR portfolio, USI almost tripled its revenue, combining organic growth with over 90 acquisitions. Over the same period, the number of employees more than doubled, and KKR supported investment in proprietary technology, data and artificial intelligence. From 2017 to the 2Q26, adjusted revenue grew at a CAGR of 12% and adjusted EBITDA at a CAGR of 13%.
The sale of USI is part of the current consolidation trend in the insurance brokerage sector, which is still highly fragmented while the major players are accepting to pay high valuations for gaining scale and market share. Reuters quoted Dealogic data saying that AON’s acquisition of USI lead the table on the sector’s recent transactions which include the 13.5 billion investment of Arthur J. Gallagher for buying AssuredPartners and the Brown & Brown 10 billion worth acquisition of Accession Risk Management, both closed in 2025. In 2024, AON paid 13 billion for purchasing NFP from Madison Dearborn Partners and HPS Investment Partners (BlackRock) with the aim of consolidating its US mid-market share (see here a previous post by BeBeez International ).
AON said in its SEC filing that it will carry on such a transaction through AON North America Inc and its subsidiary Cortlandt Acquisition Corp that will merge with USI Advantage Corp. AON will finance this acquisition with new debt having different maturities depending on market conditions.
AON appointed BofA Securities and Citi as financial advisors, Cravath, Swaine & Moore as legal counsel, McDermott Will & Schulte for regulatory issues, and Skadden, Arps, Slate, Meagher & Flom for the financing. KKR retained Goldman Sachs, Insurance Advisory Partners, Morgan Stanley, and Simpson Thacher & Bartlett, which also provided USI with legal assistance.
Chairman and ceo Mike Sicard heads USI which is the tenth-largest insurance broker in the United States, with annual revenue in the region of 3 billion. AON said in a presentation that the deal will bring 995 milioni of adjusted ebitda TTM in June 2026 excluding synergies, whilst adjusted EBITDA, before synergies, used for the multiple amounts to little less than 1.15 billion. The company has more than 10.500 workers and 200 offices in USA. USI headquarter is in Valhalla (New York). The firm provides services of property & casualty, employee benefits, personal risk, and retirement consulting. USI developed the proprietary platform USI ONE Advantage which integrates analytics, local and national resources, and strategic planning.
AON is now aiming to build with USI the leading platform in the over 40 billion worth US middle market and accounting for more than a third of commercial property & casualty premiums in the country. After the closing, Sicard will become chairman of AON plc and global CEO of Middle Market that will include USI, NFP and AON
In 2Q26, AON posted revenues of 4.246 billion, up 2% from 2Q25, and operating income of 915 million, +7%. Adjusted operating income rose by 5% to 1.227 billion, with an adjusted operating margin of 28.9%, up from 28.2% yoy. In 1H26, revenue has been in the region of 9.28 billion.
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