The deal of the year in the insurance industry: a massive $17 billion transaction
One of the largest deals in the US market is underway: a leading international broker is acquiring a giant agency with over 10,000 employees. Here is how the industry's activity will be affected in the coming years.
A massive deal in the American and global insurance industry: the international broker AON has announced the signing of an agreement to acquire the insurance agency USA for a sum of $17 billion. This is a strategic step intended to expand AON's operations in the middle-market in the United States, a market valued at over $40 billion. The move follows the acquisition of the company NFP, which was completed earlier this year, with the goal of creating a leading platform in commercial insurance, risk management, employee benefits, and retirement solutions.
The acquired company, USA, is the tenth-largest insurance broker in the United States, generating annual revenues of approximately $3 billion and employing over 10,500 people in about 200 offices. Furthermore, the deal is expected to strengthen AON's power in the excess wholesale insurance sector, which accounts for about 26% of commercial premiums in the US and is considered particularly fast-growing.
AON expects the move to yield a tremendous financial contribution, with synergies that will translate into a net annual impact of approximately $395 million on operating income and improve earnings per share starting in 2028.
"The combination will establish a leading platform and accelerate organic growth through technology and data," noted President and CEO of AON, Greg Case.
Upon completion of the deal, scheduled for the fourth quarter of 2026, the CEO of USA, Mike Sicard, will be appointed President at AON. The company will finance the deal through new debt issuance and will maintain its credit ratings, and therefore will not conduct share buybacks in the near future.
