USI Insurance Services (“USI” or the “Company”), a leader in risk management, employee benefits and retirement consulting, today announced that existing shareholder KKR is making a new equity investment of more than $1 billion in the Company.
KKR and CDPQ acquired USI in 2017 in partnership with USI’s management and employees. Over the past six years, USI has successfully executed numerous growth initiatives and transformative acquisitions to extend its leadership position in insurance brokerage and consulting with a broad range of technology-enabled property and casualty, employee benefits, personal risk and retirement solutions. The USI team has more than doubled in size to over 10,000 team members across more than 200 offices. USI’s management and employees will retain their significant ownership in the Company going forward.
Under the terms of the agreement, KKR and USI will purchase shares of USI held by CDPQ and certain other investors; more than 50% of the shares held by CDPQ will be purchased in the transaction. Following the closing of the transaction, KKR will be USI’s largest single shareholder.
“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,” said Michael Sicard, Chairman and CEO of USI. “The power of this strategic partnership has exceeded our expectations, and we are thrilled to be continuing our journey with the support of our long-term shareholders.
“Alongside KKR, a tremendous strategic partner in this investment journey, we have supported the growth of USI since 2017 – a unique and resilient company with an outstanding management team committed to offering best-in-class services to its clients,” said Martin Longchamps, Executive Vice-President and Head of Private Equity at CDPQ. “Our dynamic partnership has unlocked multiple opportunities and USI is well positioned to capitalize on its strengths and to continue creating value for all stakeholders.”
“We are enormously proud of everything the USI team has accomplished and we have a high conviction in the opportunity ahead for this winning team and operating model as USI continues to innovate and scale,” said Chris Harrington, Partner at KKR. “Together with CDPQ we have supported significant investments in USI’s platform and technology that position USI for long-term growth. We are pleased to reach this agreement to increase our ownership with a substantial investment of additional long-term capital.”
KKR is making the additional investment commitment of more than $1 billion in USI through its core investments strategy. The transaction is expected to be completed by the end of 2023. Terms of the transaction were not disclosed.
USI is one of the largest insurance brokerage and consulting firms in the United States, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to its clients nationwide. Headquartered in Valhalla, New York, USI connects over 10,000 industry-leading professionals from more than 200 offices to serve clients’ needs. USI has become a premier insurance brokerage and consulting firm by leveraging the USI ONE Advantage®, an interactive platform that integrates proprietary and innovative client solutions, networked local resources and enterprise-wide collaboration to deliver customized results with positive, bottom-line impact. USI attracts best-in-class industry talent with a long history of deep and continuing investment in our local communities. For more information, visit usi.com or follow us on LinkedIn.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2023, CDPQ’s net assets totalled CAD 424 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.
CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries.
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