KKR to pocket $24bn from USI sale

KKR, alongside other co-investors, have agreed to sell USI Insurance Services to Aon for $24 billion (US$17bn).

USI is an insurance brokerage and consulting business across risk, employee benefits and retirement solutions, and boast more than 10,500 team members operating across close to 200 locations in the US.

The transaction represents approximately six times the original equity KKR invested in 2017, valued at around $6 billion (US$4.3bn) and 3.4 times the total KKR balance sheet capital invested over its investment in USI, KKR said.

According to the private equity investor, USI's adjusted revenues and adjusted EBITDA grew at compounded annual growth rates of approximately 12% and 13%, respectively, over the course of its ownership.

Notably, Aon is expected to fund the transaction with new debt raised across "a range of" maturities, noting the close of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur in the fourth quarter of 2026.

Aon and USI will continue to operate independently until the closing date.

Commenting, KKR co-chief executives Joe Bae and Scott Nuttall highlighted the success of USI under the firm's guidance.

"USI is a textbook case of partnership, patience and value creation that delivered an exceptional outcome for our shareholders and clients," they said.

"This monetisation milestone for strategic holdings also demonstrates that the compounding opportunity of this portfolio - with durable, growth oriented and recurring cash flows - is real."

Meanwhile, Aon said the transaction enhances Aon's presence in the more than $56 billion (US$40bn) US middle-market segment, building on success of the acquisition of NFP in 2024.

USI's emerging wholesale capabilities will strengthen Aon's ability to meet a wider range of client needs and meaningfully participate in the E&S segment, among the fastest-growing areas in US commercial insurance, representing 26% of US commercial P&C premiums.

Aon chief executive and president Greg Case said creating better outcomes for clients require a combination of capabilities and expertise supported by proprietary data, analytics and technology.

"Combining with USI will establish the premier US middle-market platform, deepen our context advantage and position Aon to accelerate organic growth. Building on the success of our acquisition of NFP, USI will substantially enhance our middle-market footprint and expand access for our firm in the E&S segment to deliver content, capabilities and expertise to a broader client base, while enabling client leaders to expand relationships and win new business," Case said.

"Our combined data platform will generate richer insight, advance the development of innovative, AI-driven solutions and expand the universe of insurable risk, while further reinforcing the context advantage that differentiates Aon."

Following the close of the transaction, USI chief executive and chair Mike Sicard will serve as president of Aon plc and global chief executive of middle market, reporting to Case, and join the Aon executive committee.

"Joining Aon represents a truly energising next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform," Sicard said.

"Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients. I look forward to leading Aon's middle-market platform and uniting the strengths of USI, NFP and Aon to deliver a new standard of content, capabilities and service to our clients."

Case added: "For nearly two decades, Mike Sicard has built and led a high-performing and integrated team, and I am excited about the opportunities we will create together for our clients, colleagues and shareholders."