Aon nears $17 billion deal for USI Insurance

Aon is close to buying USI Insurance Services from private-equity firm KKR for about $17 billion, including debt, according to a Wall Street Journal report cited by Bloomberg. The agreement is not final and could be announced as soon as Monday if negotiations are completed. USI is an insurance broker rather than an insurer: it helps companies arrange coverage, manage risk, and run employee-benefit and retirement programs. If completed, the purchase would give Aon a much bigger presence among midsize employers and add a business built on continuing client relationships and recurring fees.