Usi Insurance Services, a prominent leader in risk management, employee benefits, and retirement consulting, has announced a significant reinvestment from existing shareholder KKR. This new equity investment, exceeding $1 billion, underscores KKR’s confidence in USI’s continued growth and market leadership.
The partnership between KKR and USI began in 2017 when KKR, alongside CDPQ, acquired USI in collaboration with the company’s management and employees. Over the past six years, this strategic alliance has propelled USI to new heights. The company has successfully implemented numerous growth initiatives and strategic acquisitions, solidifying its position as a leading insurance brokerage and consulting firm. USI delivers a comprehensive suite of technology-driven solutions across property and casualty, employee benefits, personal risk, and retirement services. During this period of expansion, the USI team has more than doubled, now boasting over 10,000 professionals operating from more than 200 offices nationwide. Crucially, USI’s management and employees will maintain substantial ownership in the company, ensuring continued alignment and dedication to its future success.
The agreement details a strategic share purchase where KKR and USI will acquire shares currently held by CDPQ and other investors. Notably, over half of CDPQ’s shares will be part of this transaction. Upon completion, KKR will emerge as USI’s largest single shareholder, signaling a deepened commitment and belief in the company’s trajectory.
Michael Sicard, Chairman and CEO of USI, highlighted the successful partnership, stating, “When we embarked on our journey with KKR and CDPQ, we shared a vision for USI to lead industry innovation. Combining KKR and CDPQ’s world-class sponsorship with our expert team and differentiated solutions has exceeded expectations. We are thrilled to continue this journey with their support.”
Martin Longchamps, Executive Vice-President and Head of Private Equity at CDPQ, also expressed satisfaction with the collaboration: “Alongside KKR, we have proudly supported USI’s growth since 2017. USI’s exceptional management team and commitment to best-in-class client service make it a unique and resilient company. Our dynamic partnership has unlocked significant opportunities, and USI is well-positioned for continued success.”
Chris Harrington, Partner at KKR, reinforced their long-term confidence in USI: “We are enormously proud of USI’s achievements and have strong conviction in its future. Together with CDPQ, we have supported substantial investments in USI’s platform and technology, setting the stage for long-term growth. We are pleased to increase our ownership with this significant additional capital investment.”
KKR’s investment of over $1 billion is being channeled through its core investments strategy, emphasizing the long-term nature of this commitment. The transaction is anticipated to close by the end of 2023, further solidifying USI Insurance Services’ position as a market leader poised for continued expansion and innovation in the insurance and consulting landscape.
