DUBLIN, August 30, 2026, 13:02 EDT
- Aon is nearing a deal to acquire USI Insurance in a transaction valued at roughly $17 billion, including debt, according to reports.
- The deal values USI at about 5.7 times its stated annual revenue of $3 billion.
- Aon stock finished Friday at $355.40, rising 1.67% in lighter-than-normal trading.
Aon plc (NYSE:AON) is close to reaching an agreement to acquire USI Insurance Services in a transaction valued at about $17 billion including debt, the Wall Street Journal reported on Sunday. Should negotiations finish, a deal could be announced as soon as Monday WSJ report.
The disclosed price provides a real-time measure for investors, putting USI’s valuation at roughly 5.7 times its projected yearly revenue of $3 billion.
The deal marks a major commitment for Aon. The acquisition price represents approximately 23% of Aon’s estimated $75 billion equity valuation.
Aon reported $846 million in free cash flow for the first half. The suggested valuation is roughly 20 times that total, or ten times if annualized.
| Investor measure | Latest figure | Deal context |
|---|---|---|
| Reported USI purchase price | About $17 billion | Includes debt |
| USI annual revenue | About $3 billion | Suggests valuation of 5.7 times sales |
| Aon Q2 revenue | $4.246 billion | Grew 2%; organic growth at 5% |
| Aon H1 free cash flow | $846 million | 4% higher year-on-year |
| Aon 2027 estimated EPS | $21.35 | Represents 16.6 times Friday’s closing price |
The balance continues to shift. Aon distributed $775 million to shareholders in the second quarter, of which $600 million came from buybacks.
Operational results provide a degree of reassurance. Adjusted operating income for the second quarter increased by 5% to $1.23 billion, and the adjusted margin widened by 70 basis points to reach 28.9% Aon results.
Aon’s Risk Capital division reported quarterly revenue of $3.0 billion. Organic growth reached 6%, while Human Capital posted 2%.
The deal would further Aon’s ongoing consolidation efforts. The acquisition of middle-market broker NFP had an enterprise value of $13.4 billion.
KKR, along with CDPQ, bought USI in 2017 for $4.3 billion. Selling for $17 billion would represent a fourfold return excluding subsequent capital adjustments.
Analysts are still positive. Fourteen recommend buying Aon, nine suggest holding, and two assign an Overweight rating; the average price target stands at $406.21, roughly 14% higher than Friday’s closing price WSJ Market Data.
Aon is valued at 18.6 times projected 2026 earnings and 16.6 times projected 2027 earnings. Analysts anticipate adjusted EPS will hit $23.84 in 2028.
Shares rose 1.67% on Friday before the weekend report. Trading volume reached 669,051 shares, which is just 48% of the 65-day average. Monday’s market action is likely to provide a clearer signal on financing.
Risks: Terms are not yet finalized. Debt funding might reduce the anticipated accretion, and regulatory scrutiny or integration expenses could push back the expected 2028 earnings uplift.
Investors need to monitor the funding composition, anticipated synergies, and leverage goal. These factors will decide if paying 5.7 times revenue signifies strategic growth or a costly continuation of Aon’s acquisition pattern.
