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Aon sees USI deal fueling wholesale, middle-market growth - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Aon sees USI deal fueling wholesale, middle-market growth by Gavin Souter Agents and Brokers , Excess and Surplus Lines , Mergers and Acquisitions Aon , USI Insurance Services Aug 31, 2026 Aon on Monday said its $17 billion agreement to buy USI Insurance Services will significantly expand its middle-market business and provide a platform to grow in wholesale brokerage, where it has had a limited presence for nearly two decades. The deal, which follows Aon’s $13 billion acquisition of NFP in 2024, would create a combined U.S. middle-market business with approximately $6.5 billion in annual revenue and provide Aon with direct access to excess and surplus lines markets. USI Chairman and CEO Mike Sicard will become president of Aon and global CEO of middle market after the deal closes. E&S business represents about 26% of U.S. commercial property/casualty premiums and grew at an 18% compound annual rate from 2020 through 2024, according to Aon’s investor presentation. Aon sees potential to expand USI’s limited wholesale business in combination with its existing specialty operations, Andy Marcell, deputy CEO of Aon, said during a conference call with analysts Monday. “The footprint in wholesale USI is quite small,” but combining it with Aon’s specialty operations should allow the brokerage to accelerate growth, Mr. Marcell said. Anne Corona, CEO of North America and global chief commercial officer at Aon, said in an interview that USI’s wholesale operations differ from the capabilities Aon acquired with NFP because of the breadth of USI’s insurer appointments. “We haven’t had this direct access before,” she said. Aon announced last week it would combine NFP Totalis Program Underwriters and Aon Affinity’s U.S. programs business into Totalis Specialty Group, which will include 46 specialty programs representing more than $5.5 billion in U.S. premium volume. The strategy marks a further return to wholesale brokerage for Aon. The broker sold Swett & Crawford, then one of the largest U.S. wholesalers, in 2005, as Aon and other major brokers shed wholesale operations amid conflict-of-interest concerns raised by then-New York Attorney General Eliot Spitzer’s investigations into insurance industry practices. Aon began moving back into the sector with its purchase of NFP, which included a wholesale brokerage business. When the NFP deal was announced in 2023, NFP reported $103.6 million in wholesale revenue. USI expanded its specialty distribution operations through its 2019 acquisition of U.S. Risk Insurance Group, then one of the largest U.S. wholesalers. Asked by an analyst about Aon’s branding and wholesale strategy, Mr. Marcell said the broader goal is a “connected placement strategy” spanning Aon, NFP and USI. Middle market The wholesale expansion is one element of Aon’s broader effort to build its U.S. middle-market operations. Valhalla, New York-based USI has about $3 billion in annual revenue, more than 10,500 employees and nearly 200 offices. Its business includes property/casualty brokerage, employee benefits and personal lines. It was founded in 1994 by brokerage executive Bernard H. Mizel. USI’s brokerage revenue grew 3.7% in 2025, compared with 5.1% growth in 2024, according to Business Insurance data. Middle-market companies often have less-developed internal risk management and human resources operations than larger companies and therefore rely more heavily on brokers as advisers, Ms. Corona said. “They often work even more closely and strategically with their advisors,” she said. The USI deal is the latest in a series of multibillion-dollar acquisitions by major brokers to expand their middle-market businesses. Last year, Arthur J. Gallagher & Co. completed its $13.45 billion acquisition of AssuredPartners, while Brown & Brown acquired Risk Strategies and the parent of One80 Intermediaries, Accession Risk Management Group, for $9.83 billion. In late 2024, Marsh McLennan acquired McGriff Insurance Services for $7.75 billion, adding the brokerage to Marsh McLennan Agency. Meyer Shields, a managing director at Keefe, Bruyette & Woods, said larger brokers have an advantage in the middle market because they can offer more resources and analytics than smaller competitors and have greater negotiating leverage with insurers. “The middle market is a great opportunity because so much of the competition there cannot hold a candle to the big brokers in terms of resources, in terms of analytics that they can provide to their clients,” he said. Aon CEO Greg Case told analysts the USI combination is intended to increase organic growth. “It requires us doing more with existing clients,” Mr. Case said. “But we will get new clients as well. We’re going to get both.” Aon has identified $321 million in net revenue synergies from the transaction, including increased producer productivity, cross-selling between its risk and human capital businesses and increased E&S distribution. It also expects $280 million in annual cost savings. Wells Fargo Securities said in a note the deal should strengthen Aon’s middle-market presence but noted that large brokerage acquisitions typically carry risks of revenue and producer disruption. Aon’s planned $400 million in retention and performance incentives should help mitigate those risks, it said. The incentives should help limit producer departures and associated loss of business after the acquisition, Mr. Shields said. “It will take a lot of money to retain everyone from this deal, but $400 million is a lot of money,” he said. The agreement comes less than two weeks after Aon announced leadership changes to its existing middle-market operations. Doug Hammond, who had continued to lead NFP following its acquisition, was named global executive chairman of Aon’s middle-market business. Mike Schneider was named CEO, middle market, North America; Ethan Foxman was named president, middle market, North America; and Mike James was named chief growth officer. Mr. Sicard will report to Mr. Case and join Aon’s executive committee. Mr. Case has held the title of president since Eric Andersen stepped down in March 2025. Mr. Andersen, who remained an Aon senior adviser, is now president and CEO of American International Group. Mr. Sicard has led USI since 2007 and has overseen a series of acquisitions that transformed it into one of the largest U.S. middle-market brokers, including purchases of Wells Fargo’s insurance brokerage operations. KKR and Caisse de dépôt et placement du Québec acquired USI from Onex in 2017 for $4.3 billion. KKR invested more than another $1 billion in USI in 2023 and became its largest single shareholder. Under the Aon agreement, USI shareholders will receive $17 billion in cash, financed with new debt. The transaction is expected to close in the fourth quarter, subject to regulatory approvals. Aon said the net purchase price represents approximately 14.5 times USI’s trailing 12-month adjusted earnings before interest, taxes, depreciation and amortization, including expected revenue and cost savings. Aon expects to incur $160 million in transaction costs and $550 million in integration costs. Aon’s shares were down about 8% in afternoon trading. 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