Empower Expands Further with an Additional Asset Administration Acquisition

Research evidence excerpt

Empower Expands Further with an Additional Asset Administration Acquisition

Canada | Life Insurance

Great-West Lifeco EquityJuneResearch30, 2026

FLASH NOTEEmpower Expands Further with an Additional

RATING BUYAsset Administration Acquisition

PRICE C$88.72^

We view the acquisition of Milliman's administration business positively as it will

likely be accretive immediately and also be additive to Empower's capabilities. PRICE TARGET | % TO PT C$84.00 | -5%

Importantly, it demonstrates that Empower is one of the few remaining pure 52W HIGH-LOW C$90.36 - C$49.92

consolidators in the sector, with the purchase fully funded by cash on hand. FLOAT (%) | ADV MM (USD) 29.4% | 188.30

We would expect to see this trend continue, with Empower having the size that MARKET CAP C$80.4B | $56.6B

allows for tuck in acquisitions to be fully accreitve based its scale. TICKER GWO CN ^Prior trading day's closing price unless otherwise

noted.

Summary. Empower announced the acquisition of the retirement plan and benefits administration

business of Milliman for US$340M at a valuation of 2.6% of AUM. Supported by a strong technology

platform and deep domain expertise, the acquired business provides defined contribution (DC),

defined benefit (DB), and health & welfare (H&W) administration services to corporate, public sector,

trade labor union, multi-employer, and non-profit clients.

Strategic rationale. The acquisition adds 1.5M participants (+7.7%) and US$130B in client assets

(+7%) to Empower's existing book, provides a leading proprietary DB administration platform,

enables Empower to compete more effectively for bundled DC/DB opportunities, and introduces

H&W benefits administration capability. Overall, the acquisition strengthens Empower's ability to