Strength

1. Leader in small and middle market segments: Significant presence in P&C(Property & Casualty) commercial lines that supply about three-quarters of its premiums by maintaining strong margins and underwriting discipline since the company has been in industry for more than 25 years with a wide range of products covering many aspects of life and non-life insurance.Many operating initiatives have been executed by management to focus operations on small to middle commercial markets and personal lines business that are viewed as less volatile and provide opportunities for profitable growth. It is the foremost-branded small commercial independent agent book of business and was sold through more than 5,000 agents and brokers nationwide.It had approximately $200 million in annual premium as of Dec. 31, 2017.

2. 30+ years partnership with AARP: On personal lines the company has long standing association with AARP (American Association of Retired Persons). With the aging trends in American population, there will be an increase in these over the years. AARP Direct has 79% of net written premium by distribution. It plans to maximize its AARP share from 111M to 128M by 2025. Although this business does present some concentration risks, the pool’s use of technology platforms throughout the organization, localized support and excellent service further strengthen its business position.

3. Strong management and workforce: Being present for 200 years now it has strong work force of around 16800 with highly qualified board of directors and top management aided by strong and structures ethical system. It used WFM (Work force management) processes to manage the workforce and ensure proper resource allocation, employee satisfaction and productivity. Its motto is |Right People, Right Place, Right Time|;the Work Schedules are managed for Increasing Profitability, and for Turning to Time Sheet Technology. Time sheets make sure that all data is accessible from one central source and makes it easy to correct mistakes, run reports, and analyze billing trends as you work to lower costs. It was recognized as one of the “World’s Most Ethical Companies” in all the subsequent years starting from 2008 to 2012.

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Weakness

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Opportunity

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Threat

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Political

1. Tax Reforms: Tax levies and exemptions are subjected to changing political scenario and changing governments. The previous yearbottom-line results were negatively impacted by the loss on sale of Talcott and the charge for U.S. tax reform. Growth in investment is expected to accelerate with the passage of tax reform while cash is repatriated from overseas. The Tax Cuts and Jobs Act (TCJA) that has been signed recently would see a huge impact in terms of Tax Reforms in the country. Some of the specific provisions may reduce the profitability of the companies directly.

2. Other regulatory reforms: The insurance sector has the compliance requirement of various laws that are subjected to regulatory reforms related to insurance, reinsurance, annuities, mutual funds, employee benefits investment-management and administrative services and retirement segments. The financial market segments such as annuities, mutual funds, employee benefits investment-management and administrative services and retirement plans are also regulated by various regulatory bodies.

Economic

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Social

1. Aging population: In personal lines the company has long standing association with AARP (American Association of Retired Persons). With the aging trends in American population, there will be an increase in these over the years. One key economic implication of an aging population is the effect it has on social insurance program. This puts a huge pressure on the finances of the government. With an increasing aged population, there will also be shortages of skilled labor, thus increasing the cost to the company

2. Awareness about insurance: Awareness about auto, personal group insurance has increased due to the necessities and the competitive benefits offered while for the elderly, it is a necessity. With more and more protection-based products, the market maintained its growth momentum and expanded. This led to a higher awareness of the products across the spectrum thus, giving an opportunity to many corporations

Technological

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Legal

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Environmental

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