Great West subsidiary Empower to acquire the retirement plan and benefits administration business of Milliman, Inc.

Executive Summary

• Great-West Lifeco’s subsidiary, Empower, has entered into a definitive agreement to acquire Milliman, Inc.’s retirement plan and benefits administration business for US$340 million.
• The acquisition adds approximately US$130 billion in client assets and 1.5 million plan participants to Empower, significantly expanding its defined benefit (DB) and health & welfare (H&W) administration capabilities.
• The transaction is expected to be accretive to base earnings in Year 1, generate a fully synergized IRR in the mid-teens, and deliver approximately US$20 million in cost synergies within three years.

Key Details

• Transaction Structure: Empower will acquire Milliman's retirement plan and benefits administration business for total consideration of US$340 million.
• Payment Terms: US$244 million payable upon closing, with the balance to be paid over five years.
• Financing: The transaction will be financed using existing cash resources.
• Assets and Participants Acquired:
  • Approximately US$130 billion in client assets.
  • 1.5 million plan participants.
  • Pro-forma impact brings Empower’s total workplace solutions platform to 21 million participants and US$2.0 trillion in client assets.
• Strategic Fit:
  • Adds a leading proprietary DB administration platform.
  • Introduces H&W benefits administration capability, enabling entry into a large and growing market.
  • Enhances ability to compete for bundled DC/DB opportunities, particularly in the large corporate plan segment.
• Financial Impact:
  • Milliman’s business generated approximately US$120 million in revenue in 2025.
  • Expected to be accretive to base earnings in Year 1.
  • Expected to generate a fully synergized IRR in the mid-teens.
  • Approximately US$20 million of cost synergies expected within three years.
  • Total integration costs estimated at approximately US$50 million, including technology integration.
• Closing Conditions: Subject to regulatory approvals and customary closing conditions; expected to close in the second half of 2026.
• Balance Sheet Impact: No pro forma impact to Great West's holding company cash balance of $2.1 billion and leverage ratio of 28% as at March 31, 2026.

Notable Quotes

• "The acquisition reflects our disciplined approach to capital deployment and our focus on strengthening high-quality, capital-efficient growth platforms... It also aligns with our strategy of pursuing opportunities that add scale, expand and deepen capabilities, and generate attractive long-term returns..." — David Harney, President and CEO, Great West
• "This transaction significantly strengthens our ability to compete and win across the full spectrum of retirement solutions by bringing a leading defined benefit platform in-house. The business' strong reputation, high-quality client base, and scalable platform align closely with our long-term strategy." — Edmund F. Murphy III, CEO, Empower