Aon, a global risk and reinsurance broker, has announced plans to acquire USI Insurance Services, a middle-market insurance platform, creating a combined revenue base of $6.5 billion. The acquisition is part of Aon's strategy to strengthen its middle-market capabilities and enhance its position in the insurance industry.
The acquisition, valued at approximately $990 million in EBITDA, is expected to generate $395 million in EBITDA synergies. Aon plans to finance the deal with $17 billion of debt. The transaction is expected to close in the second half of 2026.
Greg Case, CEO of Aon, highlighted the value creation opportunity, stating that the acquisition could be multiples of the current share price. He also emphasized the integration of middle-market assets, stating that Aon Business Services can now invest into the middle market and create better, not just bigger.
USI Insurance Services is a $11 billion premium flow platform, bringing 300 Excess and Surplus (E&S) appointments. The E&S market represents 26% of U.S. insurance flow. Aon has also invested $1.3 billion in AI capabilities to enhance its operations.
The global insurance industry balance sheet pool is approximately $5 trillion, compared to wider capital pools estimated at $250 trillion. Aon's long-term organic growth target remains mid-single-digit or better.
The acquisition is expected to strengthen Aon's position in the middle-market insurance segment and enhance its capabilities in the insurance industry.
