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Empower completes $340 million Milliman retirement administration deal
The acquisition adds about 400 defined benefit plans with roughly 790,000 participants and about US$80 billion in client assets to Empower's retirement services platform.
Great-West Lifeco's US subsidiary Empower has completed its acquisition of Milliman's retirement plan and benefits administration business, first announced June 30, adding a mix of defined benefit, defined contribution, and health and welfare administration clients.
The deal brings roughly 400 defined benefit plans covering about 790,000 participants and US$80 billion in client assets, plus more than 1,100 defined contribution plans covering about 750,000 participants and over US$50 billion in assets. It also includes 100 health and welfare administration clients serving about 100,000 participants.
Empower says the transaction expands its overall footprint to more than 22 million lives served, over US$2.3 trillion in client assets, and 96,000 workplace plans. About 800 Milliman employees are joining Empower as part of the acquisition.
Empower financed the US$340 million total consideration using existing cash resources, paying US$244 million at closing with the remainder spread over five years, and Great-West said the structure would have no pro forma impact on its holding company cash balance or leverage ratio. Empower CEO Edmund F. Murphy III said the deal strengthens its ability to compete across retirement solutions by bringing a defined benefit platform in-house, and the acquired business operates entirely under US regulatory frameworks.