USI Insurance Services Gets Equity Investment Increased

USI Insurance Services LLC announced on Monday that shareholder KKR & Co. will increase its equity investment to the insurance broker and consultant by more than $1 billion.

Per the terms of the agreement, KKR and USI will purchase more than half of the shares of USI held by Canadian pension fund Caisse de dépôt et placement du Québec, according to the press release.

“This won’t impact our products or services other than KKR continues to support our M&A activity, adding new consulting talent to our firm and bench strength,” says Bill Tremko, president and CEO, at USI Consulting Group. “As for sponsors and participants, our employee ownership percentage continues to grow, providing added incentive for good service and the success of the firm.” 

KKR is making the additional investment in USI through its core investments strategy, and the transaction is expected to be completed by the end of 2023, the release added.

USI Insurance is co-owned by private equity firm KKR and institutional investor CDPQ, which has C$424 billion ($312.35 billion) in assets. CDPQ and KKR acquired USI in 2017 in partnership with USI’s management and employees, according to the press release.

“When we embarked on our journey with KKR and CDPQ, we shared a vision about the forces impacting our industry and a plan for USI to be a leading innovator in that transformation, combining world-class sponsorship and investment with our team of experts, differentiated solutions and technology,” Michael Sicard, chair and CEO of USI, stated in the release.

USI offers insurance brokerage and consulting services in the U.S., providing property and casualty, employee benefits, personal risk, program and retirement solutions to clients. Headquartered in Valhalla, New York, USI has more than 10,000 employees in more than 200 offices.