UBS reiterated its neutral rating and $387 price target for Aon Corp on Monday, as the global insurance broker nears an agreement to acquire USI Insurance Services from private equity firm KKR for approximately $17 billion, including debt.
The potential transaction would mark Aon’s second major acquisition in 2024-2026, following its $13 billion purchase of NFP in April 2024. USI generated roughly $3 billion in annual revenue, implying an enterprise value-to-revenue multiple of about 6x. The deal is expected to close by late 2026, with an official announcement possible as early as this week, according to sources cited by UBS.
Aon’s stock closed at $355.40 on August 28, trading near its 52-week high and reflecting a market capitalization of $75.39 billion. The company reported adjusted earnings per share of $3.81 for Q2 2026, slightly above Wall Street’s $3.80 estimate, though revenue of $4.25 billion fell short of the $4.27 billion forecast. Organic revenue growth stood at 5%, while adjusted operating margin expanded to 28.9%. The company’s P/E ratio was 19.67, and its Piotroski score remained at a perfect 9, indicating strong financial health.
UBS analyst Brian Meredith maintained the neutral rating, citing the strategic rationale behind the USI acquisition. The deal is projected to enhance Aon’s presence in the middle-market insurance segment, which has historically outpaced growth in larger corporate segments. Analysts estimate the transaction will be earnings-accretive by 2028, aligning with Aon’s long-term growth strategy.
Leadership changes at Aon include the departure of Chief Financial Officer Edmund Reese, who stepped down to pursue other opportunities after serving in the role since 2021. Reese will continue as a senior consultant until August 2027 to assist with the transition. Nadin Virani has been named interim CFO.
Other analysts have set higher price targets for Aon, including Cantor Fitzgerald at $445 and Mizuho at $437. Mizuho also projected fiscal 2026 earnings per share of $19.05 for Aon, up from $18.15 in fiscal 2025.
