Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Merger or Acquisition (September 2020)
12 slides from Great-west Lifeco's merger presentation, September 2020
Slide 1: Empower's Acquisition of the Retirement Services Business of MassMutual
Empower’s Acquisition of the Retirement Services Business of MassMutual September 2020 Note: All figures in U.S. Dollars, unless stated otherwise
Slide 2: Cautionary Notes
CAUTIONARY NOTES CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This document may contain forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “will”, “may”, "e
Slide 3: Empower to Acquire MassMutual's Retirement Services Business
EMPOWER TO ACQUIRE MASSMUTUAL’S RETIREMENT SERVICES BUSINESS • Empower will acquire the retirement services business of MassMutual in a reinsurance transaction for a ceding commission of $2.35 billion. The total transaction value is approximately $3.35 billion (C$4.4 billion) including $1.0 billion
Slide 4: U.S. Retirement Market Remains a Compelling Growth Opportunity
U.S. RETIREMENT MARKET REMAINS A COMPELLING GROWTH OPPORTUNITY Workplace Advisory Services are growing quickly and may be further accelerated by current economic disruption Total DC Plan Assets ($ in billions) 2010-2019 CAGR % Total DC Assets $8,107 $8,087 $271 $7,720 $348 $7,059 $267 $6,220 $6,620
Slide 5: MassMutual's Retirement Services Business Today
MASSMUTUAL’S RETIREMENT SERVICES BUSINESS TODAY Business at a Glance Composition of Client Assets1,2 • Full-service retirement solutions provider offering record-keeping, investments, Taft-Hartley Defined Benefits administrative and other services 12% 4% Retirement Solutions Not-for-Profit Provider
Slide 6: Empower Becomes the Clear #2 in the U.S. Retirement Space
EMPOWER BECOMES THE CLEAR #2 IN THE U.S. RETIREMENT SPACE The transaction consolidates Empower as the second largest player in terms of participants and assets 12.2 as of Top 10 DC Players by Participants (millions) Jun-2020 23.7 #2 #2 #14 11.8 9.2 8.6 6.3 5.7 5.4 4.8 4.1 3.6 3.1 2.6 Fidelity Empowe
Slide 7: Acquisition Consolidates Empower's Leadership in the U.S. Retirement Industry
ACQUISITION CONSOLIDATES EMPOWER’S LEADERSHIP IN THE U.S. RETIREMENT INDUSTRY Strengthens Empower’s #2 position in the growing U.S. retirement industry, with combined assets of $834 billion and 12.2 million participants Solidifies Establishes a clear #1 leadership position in highly attractive s
Slide 8: Meaningful Synergy Opportunities
MEANINGFUL SYNERGY OPPORTUNITIES Acquisition presents meaningful expense and revenue synergy opportunities, following a proven track record over many years, including the similar integration of JP Morgan’s RPS business and Putnam to form Empower Opportunities Expected Run-Rate Synergies • MassMutual
Slide 9: Transaction Details
TRANSACTION DETAILS • Empower will acquire the retirement services business of MassMutual for a total transaction value of approximately $3.35 billion Transaction Value – Reinsurance ceding commission of $2.35 billion, including a transaction tax benefit payment of approximately $300 million – Trans
Slide 10: Key Takeaways
KEY TAKEAWAYS 1 Strengthens Empower’s leadership position in a growing U.S. Retirement Industry Presents meaningful expense and revenue synergy opportunities leveraging Empower’s proven track 2 record of platform integrations Enhances retail opportunity and increases the synergy potential of Persona
Slide 11: Appendix
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Slide 12: Illustrative Earnings Per Share (EPS) Impact
ILLUSTRATIVE EARNINGS PER SHARE (EPS) IMPACT C$ in millions, except per share metrics 2022E Great-West Lifeco Forecast Standalone EPS (IBES Consensus1) $3.01 Great-West Lifeco Forecast Standalone Net Income (IBES Consensus1) $2,789 After-Tax Forecast Pro Forma Adjustments2: Incremental Earnings Fore
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