Sun Life Financial SWOT and PESTLE Analysis

Strength

1. Strong Asset Management: The company has strong asset management presence in Philippines. The trust factor of the company is very high with reputation of being the largest non-bank affiliated asset management company in the country. Innovative schemes are the reasons which makes the company unique with cutting edge schemes. The unconditional life insurance policy which it offers is one of its kind and many more were introduced successfully in due course of time. Also, technology is playing a crucial role in asset management by implementing digital technology while surveying competitive focus market.

2. Acquisitions to extend reachability: Many companies have been acquired in order to use their already established reputation. The U.S. asset manager Ryan Labs was purchased in January 2015 to strengthen its asset management presence in United States. Prime Advisors, Inc. was also purchased to strengthen its roots in United States.

3. Diversified Investment and business: It started as a Canadian company but now is spread in the entire world, starting from developing countries like India to developed ones like the United States depicts the success of the company in terms of its reachability and risk diversification. Hence, the risk of complete wiping out of business is nominal. The company provides diversified solutions to address employee physical, mental and financial health needs by making the connections between health and business having future goal to focus on the most important needs and priorities. Through a strategic approach to health and absences and a comprehensive service offering to support organizational and employee health, they are meeting the needs of today and building a healthier future.

4. Proactive nature: The proactive nature of the company gives an upper hand in customer experience and market value enhancement as the customer feels valued which leads to more business. The company is involved in most kinds of insurance to diversify its business and support people proactively including dental insurance and voluntary insurance introduced for companies as a perk to retain the efficient and valued employees.

5. Leaders in insurance: Canadians have voted Sun Life Financial the Most Trusted Life Insurance Company helping it win the Most Trusted Brand award in 2017 for the 8th year in a row, according to the 2017 Reader's Digest Trusted Brand Survey. Sun has spread its dental insurance to cover for both preventive and diagnostic treatment to workplace solutions hereby implementing a strategic approach to health and absences and a comprehensive service offering to support organizational and employee health.

Weakness

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Opportunity

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Threat

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Political

1. Trade protectionist policies of Trump administration: Increased protectionism policies impact global business entrants from entering the well speculated powers. Sun Life being a Canadian company may find difficult market conditions for operating in the U.S as new regulations are likely to be introduced that affect foreign companies. The new administration under Trump has withdrawn many trade agreements and is expected to make many more administrative changes in trade deals and partnerships.

2. The strong native companies influencing the political powers to stop them from entering: The native companies will influence the political powers to stop foreign companies from entering the country for business. When the local companies dominating the company cannot enter as an entity instead it enters as a collaborative company. For example, having a joint venture in Vietnam and acquisition in Malaysia, where in partnership with Khazanah (Khazanah Nasional Bhd is the strategic investment fund of the government of Malaysia). There is lot of competition and with these those two steps, they are expanding their reach in Asia from five countries to seven and these countries represent about 70% of the population and about 90% of the growth in our industry in the next decade.

Economical

1. Conflict with native insurance companies: Since the company is expanding it is causing conflict with native companies. Many times it is involving a third party to maintain quality of work with demand as per location and also collaborating with companies to maintain the same. But already established individual companies are facing threat due to the popularity of such global companies.

2. Varying values in currency markets: Being a global company, political and economic uncertainty globally is causing variations with fluctuations in the currency market. The values keep fluctuating and hence depending on the country’s economic condition and company's margins the evaluation varies. By partnering with Sun it helps clients to enhance their business, attract and retain top talent, and help covered employees protect what they love about their lives irrespective of the geographical location but with costs depending on the currency value in the market. Sun Life is partnering with Toronto’s MaRS Discovery District to gain access to a pipeline of health tech and fintech start-ups.

Social

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Technological

Legal

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Environmental

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