On the last day of August, Aon – the third largest insurance broker of U.S. business – announced its agreement to acquire USI Insurance Services from KKR for approximately $17 billion. The transaction combines one of the world’s largest brokerage and consulting firms with the nation’s tenth largest insurance broker, a middle-market leader generating roughly $3 billion in annual revenue with more than 10,500 employees across nearly 200 U.S. offices. Aon cited USI’s strong middle-market presence, proprietary USI ONE analytics platform, employee benefits capabilities, and growing access to the excess and surplus (E&S) market as key strategic drivers of the acquisition.
Beyond the size of the deal, its significance lies in what it signals about the future of insurance brokerage mergers and acquisitions (M&A). The acquisition reinforces that scale alone is no longer enough. Buyers are pursuing firms that combine strong growth profiles, specialized expertise, data and analytics capabilities, and differentiated client solutions. It also underscores that consolidation remains a powerful force across the industry, including at the very top of the brokerage landscape.
At the same time, broader economic conditions continue to challenge growth across the industry, making organic growth harder to come by. As a result, buyers are becoming increasingly selective in how they deploy capital. According to MarshBerry transaction data, announced U.S. insurance brokerage deals continue to trail last year’s historic pace. Yet buyer demand remains healthy, particularly among private equity-backed firms and large strategic acquirers.
As the year progresses, the defining story in insurance brokerage M&A may not be transaction volume. Rather, it may be more about the pronounced performance divide between top performing and average firms.
The Aon-USI transaction demonstrates that buyers remain willing to make bold investments for the right assets, while the broader market continues to reward firms that can consistently outperform. In today’s environment, the gap between average and exceptional organizations continues to widen, and that gap is increasingly shaping both acquisition activity and valuation outcomes.
M&A market update
As of August 31, 2026, there were 406 announced M&A transactions in the U.S. This is down 7.4% compared to last year at this time when there were 436 transactions announced through August.
Private capital-backed buyers accounted for 305 of the 406 deals (75.1%) through July. Independent brokers were buyers in 33 deals, representing 8.1% of the market. There have been six announced transactions by bank buyers in 2026. Deals involving specialty intermediaries as targets accounted for 73 transactions, representing 18.0% of all deals so far.
Deal activity from the top ten buyers accounted for 52.2% of all announced transactions, while the top three (BroadStreet Partners, Inszone, and ALKEME) accounted for 30.5% of the 406 total transactions.
Notable transactions:
- August 12: Sunstar Insurance Group partnered with RJR Faribo Insurance Agency, an independent Minnesota brokerage, marking Sunstar’s entry into the state and further expanding its Midwest presence. With roots dating to the 1930s and offices in Eden Prairie and Faribault, RJR Faribo provides commercial and personal insurance solutions to businesses and individuals across Minnesota and brings 22 employees to the Sunstar platform. The partnership provides RJR Faribo with access to broader carrier relationships and specialized capabilities while preserving its local leadership, team, and client relationships. Backed by Reverence Capital Partners, Sunstar operates across nine states, employs more than 900 people, and places over $2 billion in annual premiums as it continues to expand through organic growth and strategic acquisitions. MarshBerry served as advisor to RJR Faribo in this transaction.
- August 31: Aon agreed to acquire USI Insurance Services from KKR and other shareholders for $17.0 billion, significantly expanding its position in the U.S. middle-market insurance brokerage sector following its acquisition of NFP in 2024. USI is the tenth largest U.S. insurance broker, generating approximately $3 billion in annual revenue with more than 10,500 employees across nearly 200 offices, and provides property and casualty, employee benefits, personal risk, retirement, and program solutions. The transaction values USI at approximately 14.5x synergized trailing twelve-month adjusted EBITDA and is expected to generate roughly $395 million of annual run-rate EBITDA impact from revenue and cost synergies. The combination will materially increase Aon’s middle-market scale, expand its access to the E&S market, and bring together USI, NFP, and Aon under a broader middle-market platform, with USI Chairman and CEO Mike Sicard set to become President of Aon and global CEO of Middle Market following closing.
2026 Acquisition Detail (YTD as of August 31, 2026)
Retail vs. Specialty
Retail: 333
Specialty: 73
What’s Being Bought
Full Service: 54
P&C: 282
Employee Benefits: 70
Who’s Buying
Insurance Broker – Independent: 33
Insurance Broker – Public: 29
Insurance Broker – Private Capital Backed: 305
Insurer and Other: 33
Bank & Thrift: 6
