Deal brings a defined benefit platform in-house and adds 1.5 million plan members to the book
Empower, a subsidiary of Great-West Lifeco, has agreed to acquire Milliman Inc's retirement plan and benefits administration business for US$340m.
The deal brings a defined benefit administration platform in-house and opens a new line in health and welfare administration.
The business administers defined contribution, defined benefit and health and welfare plans for corporate, public sector, trade labour union, multi-employer and non-profit clients, holding roughly US$130bn in assets across 1.5m participants.
Great-West Lifeco said the acquisition lifts Empower's workplace platform to about 21m participants and US$2.0tn in assets on a pro forma basis.
The company said the deal positions Empower to compete for bundled defined contribution and defined benefit mandates, particularly among large corporate plans where sponsors value integrated offerings.
The health and welfare capability opens entry to a new market and adds bundling options for the existing client base, according to the announcement.
Empower CEO Edmund F. Murphy III said the transaction strengthens the firm's position “across the full spectrum of retirement solutions by bringing a leading defined benefit platform in-house.”
David Harney, president and CEO of Great-West Lifeco, said the purchase fits the company's disciplined approach to capital deployment and its focus on capital-efficient growth.
On the financials, Milliman's business generated about US$120m in revenue in 2025.
Great-West Lifeco expects the deal to be accretive to base earnings in the first year and to produce an internal rate of return in the mid-teens, along with roughly US$20m in cost synergies within three years and integration costs of about US$50m.
Empower will fund the purchase from existing cash, paying US$244m at closing and the balance over five years.
Great-West Lifeco said the transaction has no pro forma impact on its holding company cash balance of $2.1bn or its 28 percent leverage ratio as at March 31, 2026, and that it will retain flexibility for share buybacks in 2026 at levels similar to 2025 and for further acquisitions.
The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
