Canadian insurer Great-West Life (GWO) has completed its $4.45-billion acquisition of the U.S. retirement business of Prudential Financial (PRU).
The purchase expands the Winnipeg-based company's presence in the lucrative U.S. retirement market through its Denver, Colorado subsidiary Empower Retirement.
Great-West Life says the deal increases Empower's base to more than 16.6 million participants, 71,000 workplace savings plans and about $1.4 trillion U.S. in assets under administration.
Great-West Life said the transaction has advanced the company's value-creation priorities and accelerated growth. Empower and its customers will benefit from significant added scale and capabilities, solidifying its leadership position in the world's largest retirement market, according to the company.
Empower's contribution to Great-West Life's earnings is forecast to grow to 30% by the end of 2023.
Great-West Life’s stock is down 3% year to date at $36.61 per share.
