Empower Acquires Milliman Retirement Business for $340 Million in Major Expansion Move
Empower acquires milliman retirement business for $340 Million in the workplace retirement services space this year and will see the company purchase Milliman’s retirement division. The acquisition will increase Empower’s defined benefit administration footprint and extend its workplace benefits platform with new health and welfare capabilities. The deal is expected to add around 1.5 million plan members and some $130 billion in client assets to Empower when it closes, strengthening its position in the U.S. retirement market.
Recent Empower and Milliman Financial Update
Empower and Milliman today announced they have reached a definitive agreement for Empower to acquire Milliman’s retirement administration business for $340 million. The acquisition is subject to regular regulatory approvals and is scheduled to completion in the second half of 2026.
Social Security Benefits Taxation Guide 2026 Explains Federal and State Tax Rules for RetireesThe transaction includes around 400 defined benefit plans with nearly 790,000 participants and approximately $80 billion of assets under administration. It also adds more than 1,100 defined contribution plans with about 750,000 participants and over $50 billion of client assets, and 100 health and welfare administration clients. Empower is expected to add more than 800 personnel following the transaction.
Financial Impact and Strategic Highlights
This deal is proof of Empower’s long-term growth plan and not the quarterly results. The parent firm, Great-West Lifeco, said the transaction should be accretive to base profits in the first year post-closing and generate an internal rate of return in the mid-teens once synergies are completely achieved.
The company expects future earnings growth to be driven by recurring fee-based revenue, operational efficiency and a broader workplace solutions platform. Milliman will continue to operate its actuarial consulting business, and will enter a strategic agreement with Empower for specific services.
Reaction of the market and industry
The deal allows Empower to expand its services beyond defined contribution plans to include defined benefit plan administration and health benefit management, strengthening its position as a competitor in the retirement services business.
Industry observers say the deal is part of an acquisition-driven expansion plan for Empower, which has made several acquisitions to enhance its retirement and wealth management capabilities. The news has been closely monitored across the retirement services space for the possibility of change competition among large workplace pensions providers, while Empower is not publicly traded.
What This Means for Shareholders
The deal underscores ongoing investment in fee-based, recurring retirement administration services for investors of Great-West Lifeco. The bigger client base and broader service offerings could be good for long-term income stability and offer chances to cross-sell across retirement, wealth management and employee benefits.
Investors should also watch integration costs and regulatory approvals, as good execution will be key to unlocking the expected financial upside.
What after Retirement Business for $340 Million ?
The firms anticipate that the acquisition will close in the second half of 2026, subject regulatory approvals. After the closure, Empower expects to absorb the new operations and will join with Milliman through a strategic alliance that will focus on actuarial and pensions administration services.
We anticipate to provide additional updates in the future on integration milestones, financial contributions from the acquired firm and progress towards the estimated earnings gains described by Great-West Lifeco.
Sources
- Empower – Official deal announcement, transaction value, participants and assets, comment from CEO
- Great-West Lifeco – Earnings projection, IRR projected, funding information, strategic reasoning
- Milliman – Business retention plans and future strategic engagement with Empower.
- InvestmentNews – Industry research and growth affecting retirement services market.
