Aon slides on $17 bln deal for insurance brokerage USI

Aon

31/08/2026 16:24

Updates stock activity
** Shares of Aon PLC AON.N slide 7.2% to two-month low of $329.80 after co said it will buy insurance brokerage USI Insurance Services in $17 bln deal from private equity firm KKR KKR.N
** AON stock on course for steepest daily pct drop since Feb 9
** Deal highlights Aon's efforts to expand its presence in the vast U.S. middle-market insurance segment and bolster its capabilities in the fast-growing excess & surplus (E&S) market
** Co, which had ~$75 bln market cap as of Fri, expects transaction to close in Q4 2026 and anticipates it will boost adjusted profit in 2028
** With the decline, stock down 6.5% YTD, well underperforming S&P 500 Insurance Index's .SPXIN ~5% advance and S&P 500's .SPX 12% gain
** Stock recently traded at 17 times expected earnings vs its 5-yr avg of 20, per LSEG data
** Avg rating of 25 analysts is "buy"; median PT $411
** KKR and Canadian pension fund CDPQ bought Valhalla, New York-based USI in $4.3 bln deal in 2017; KKR stock up 1.4% at $110.25 on the session

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))