Great-West Lifeco Inc. has agreed to acquire Milliman Inc.'s retirement plan and benefits administration business for US$340 million.
The transaction targets Milliman's defined contribution administration services, a segment that complements Great-West's existing operations.
The deal is designed to accelerate growth for Great-West's Empower subsidiary, which focuses on benefits administration and financial planning.
By integrating Milliman's client base and administrative infrastructure, Great-West aims to deepen its footprint in the retirement services sector, offering a more comprehensive suite of tools for employers and plan participants.
This move underscores a broader trend of consolidation and specialization within the financial services industry, where insurers and asset managers are increasingly acquiring niche administrative capabilities to enhance client retention and cross-selling opportunities.
The acquisition allows Great-West to scale its Empower platform without building the underlying technology and client relationships from scratch.