BUZZ-AON slips after reaching $17 bln deal for insurance brokerage USI

** Shares of Aon PLC AON.N down 1.7% at $349.44 premarket on Mon after saying it will buy insurance brokerage USI Insurance Services in $17 bln deal from private equity firm KKR KKR.N

** Deal highlights Aon's efforts to expand its presence in the vast U.S. middle-market insurance segment and bolster its capabilities in the fast-growing excess & surplus (E&S) market

** Co, which has ~$75 bln market cap, expects transaction to close in Q4 2026 and anticipates it will boost adjusted profit in 2028

** Through Fri close, AON's stock up 0.7% YTD, lagging S&P 500's .SPX 12.7% gain and S&P 500 Financials .SPSY 5.9% advance

** Stock recently traded at 17 times expected earnings, vs its 5-yr avg of 20, suggesting it may be undervalued, per LSEG data

** Avg rating of 25 analysts is "buy"; median PT $410

** KKR and Canadian pension fund CDPQ bought Valhalla, New York-based USI in $4.3 bln deal in 2017; KKR shares essentially flat before the bell at $108.70

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))