The acquisition allows Empower to bring a defined-benefit platform in-house, a move designed to sharpen its competitive edge in the retirement product market. Milliman’s administration business, which generated $120 million in revenue last year, fits into a broader strategy to scale operations and secure long-term returns, according to Great-West President and Chief Executive David Harney.
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Great-West Lifeco Expands Empower Portfolio in $340 Million Deal
With a $340 million cash payment, Great-West Lifeco is absorbing the retirement plan and benefits administration arm of Seattle-based Milliman. The deal brings 1.5 million new plan participants into the fold, pushing the total client assets under the company's Empower subsidiary to a pro forma $2 trillion.
Great-West expects to see $20 million in cost synergies within three years, even after accounting for roughly $50 million in integration expenses. The firm plans to fund the purchase using existing cash reserves, maintaining enough liquidity to continue its share buyback programs and pursue future acquisitions.
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