Assignment#1-A.Blakely

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University of Guelph *

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Finance

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Jan 9, 2024

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Introduction SunLife Financial is a financial management company that helps their clients with their financial needs (SunLife, n.d.). Specifically, SunLife provides life and health insurance products ( SunLife, n.d. ). The life insurance industry is primarily made up of big players who provide monetary value left behind for an individuals loved ones ( Beers , n.d.). The insurance sector is highly regulated and therefore has many strengths, weaknesses, opportunities, and threats ( Beers, n.d .). In this report, we will provide a SWOT Analysis for SunLife Financial . Strengths SunLife has been in the life insurance industry for more than 150 years ( SunLife, n.d. ). Due to the longevity in the industry, SunLife has a strong positive reputation. This is a strength for SunLife, as they are able to generate clientele with their reputation and years of service (SunLife Financial Inc, 2023). Since SunLife has spent a long time cultivating its position in this industry, they are able to have a greater reach globally (SunLife Financial Inc, 2023). Another strength of SunLife is their international capabilities (SunLife Financial Inc, 2023). This is a strength due to the ability to optimize market size throughout the globe. Finally, the life insurance industry has big competitors who dominate the industry, SunLife is one of these big players. Therefore, SunLife is very resilient to market fluctuations (SunLife Financial Inc, 2023). Market resiliency is a very big strength, as the market fluctuations naturally, but companies who are able to survive the extreme dips in the market are more applying for customers, and are able to keep their business going throughout recessions. Overall SunLife’s greatest strengths are their positive reputation, international reach, and market resiliency . Weaknesses Since SunLife is a major company, they have prioritized strengthening their weaknesses throughout the years of operation. However, they have structured their distribution channel using the traditional method ( SunLife Financial Inc, 2023). Following COVID-19, a new technological era has emerged that SunLife hasn’t efficiently and effective put into play. This is a weakness for SunLife, as keeping up with technological advancements will keep SunLife innovating along the trends. However, without this innovation, SunLife could fail to keep up with changes and therefore diminish its capital power within the market (SunLife Financial Inc, 2023). SunLife is also very reliant on the American Market (SunLife Financial Inc, 2023). This market is continuously introducing changes, therefore SunLife needs to evolve alongside them. Another weakness of SunLife is their dependency on the American Market for profit generation (SunLife Financial Inc, 2023). Throughout the annual report, the reliance on the US market is evident. The high dependency on the American market would be a weakness because with well-being on the market directly correlates to the well-being of the company’s profit . Opportunities SunLife has a great opportunity to diminish their dependence on the American market

due to the increase in demand in Asia. There has been a fast growing demand in high net worth individuals in Asia ( SunLife Financial Inc, 2023). This growth results in a share of wealth, therefore presenting an opportunity to immerse SunLife into the Asia market more firmly to establish lesser dependence on the American Market (SunLife Financial Inc, 2023). SunLife also has an opportunity arising due to the aging demographic which leads to demand in the retirement market, therefore increase in life insurance premiums (SunLife Financial Inc, 2023). Finally, in the aftermath of the pandemic, an increase has been seen in the demand for mental-health and well-being tools and products (SunLife Financial Inc, 2023). This increase leads to greater life and health insurance needs, therefore providing a profit opportunity for SunLife . Threats Currently, the economy is experiencing an inflation across the globe (SunLife Financial Inc, 2023). This inflation is a risk to SunLife because of the underlying causes to the inflation. Inflation is occurring due to an inconsistent labour market and supply chain disruptions (SunLife Financial Inc, 2023). This would be a threat for SunLife because the ability to hire new employees is inconsistent, therefore could threaten the productivity of the company (SunLife Financial Inc, 2023). As well, the supply chain distributions result in delays to product delivery, raw material delivery, and required services for company function (SunLife Financial Inc, 2023). Another threat to SunLife is the increase in restriction of regulatory compliance resulting increase in costs (SunLife Financial Inc, 2023). An increase in cost to meet regulation results in a need for increase profit, therefore creating the possibility of profit loss. Finally, following the effect of the global pandemic, an increase in competition from new market entrants has been seen (SunLife Financial Inc, 2023). This increase in new market entrants leads to an increase in industry competition. Paired with SunLife’s weakness in digitalization, this could be a threat because newer companies would be more in tune to the up to date trends, technologies, and customer demands .

References SunLife Financial Inc. (2023). Annual information form . Achievements . Sun Life. (n.d.). https://www.sunlife.ca/en/about-us/achievements/ Beers, B. (n.d.). A brief overview of the insurance sector . Investopedia. https://www.investopedia.com/ask/answers/051915/how-does-insurance-sector-work.asp

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