Aon slides on $17 bln deal for insurance brokerage USI
AON•Aon falls after announcing USI Insurance Services acquisition
** Shares of Aon PLC AON.N slide 7.2% to a two-month low of $329.80 after the company said it will buy insurance brokerage USI Insurance Services in a $17 bln deal from private equity firm KKR KKR.N
** AON stock is on course for its steepest daily percentage drop since Feb. 9
** The 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
** The company, which had a market cap of about $75 bln as of Friday, expects the transaction to close in Q4 2026 and anticipates it will boost adjusted profit in 2028
** With the decline, the stock is down 6.5% year to date, well underperforming the S&P 500 Insurance Index's .SPXIN ~5% advance and the S&P 500's .SPX 12% gain
** The stock recently traded at 17 times expected earnings versus its five-year average of 20, per LSEG data
** The average rating of 25 analysts is "buy"; median price target is $411
** KKR and Canadian pension fund CDPQ bought Valhalla, New York-based USI in a $4.3 bln deal in 2017; KKR stock was up 1.4% at $110.25 on the session
