<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges or
contract charges. Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
Unit Value
-------------------------------------- Percent Change
December 31, 1998 December 31, 1999 in Unit Value
------------------ ------------------ --------------
<S> <C> <C> <C>
MFS/Sun Life Series Trust
Capital Appreciation Series........... $12.7776 $16.9479 32.64%
Emerging Growth Series................ 14.7307 25.8976 75.81
Government Securities Series.......... 11.4882 11.2728 (1.88)
Massachusetts Investors Growth Stock
Series............................... 10.0940* 12.7854 26.66
Money Market Series................... 10.0791* 10.3154 2.34
Research Series....................... 11.1590* 13.0662 17.09
Total Return Series................... 11.6974 12.0298 2.84
Utilities Series...................... 11.5458* 13.8242 19.73
Global Growth Series.................. 12.1073 20.2495 67.25
Fidelity Variable Insurance Products
Fund
VIP Equity Income Portfolio........... 12.1812 12.9522 6.33
VIP Growth Portfolio.................. 14.2799 19.6258 37.44
VIP High Income Portfolio............. 10.1740 11.0037 8.16
VIP Money Market Portfolio............ 11.1396 11.7164 5.18
Fidelity Variable Insurance Products
Fund II
VIP II Asset Manager: Growth
Portfolio............................ 11.2045* 11.9859 6.97
VIP II Contrafund Portfolio........... 14.3350 17.8118 24.25
VIP II Investment Grade Bond
Portfolio............................ 10.5894* 10.5374 (0.49)
VIP II Index 500 Portfolio............ 14.8244 17.8649 20.51
Neuberger Berman Advisers Management
Trust
Limited Maturity Bond Portfolio....... 10.8064 10.9661 1.48
Mid-Cap Growth Portfolio.............. 11.6420* 17.4307 49.72
Partners Portfolio.................... 11.0484 11.8626 7.37
J.P. Morgan Series Trust II
J.P. Morgan Bond Portfolio............ 11.4626 11.3436 (1.04)
J.P. Morgan Equity Portfolio.......... 12.6050 14.9425 18.54
J.P. Morgan Small Company Portfolio... 10.3154 14.8946 44.39
Templeton Variable Products Series Fund
Templeton Stock Fund: Class 1......... 9.7515 12.5888 29.10
Dreyfus Variable Investment Fund
Capital Appreciation Portfolio........ 11.5363* 12.3214 6.81
Small Cap Portfolio................... 9.3498* 10.5506 12.84
Quality Bond Portfolio................ 9.9709* 10.2460 2.76
Dreyfus Stock Index Fund.............. 9.8374* 10.9176 10.98
T. Rowe Price Equity Series, Inc.
T. Rowe Price Equity Income
Portfolio............................ 11.1526* 10.2471 (8.12)
T. Rowe Price New America Growth
Portfolio............................ 10.8381* 11.6010 7.04
AIM Variable Insurance Funds, Inc.
AIM V.I. Value Fund................... 10.3108* 11.7742 14.19
Sun Capital Advisers Trust
Real Estate Fund...................... 9.5788* 9.2632 (3.29)
</TABLE>
*Unit value on the date of commencement of operations of the Sub-Account.
1
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENT OF CONDITION
-- December 31, 1999
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C> <C>
Investments in Mutual Funds: Shares Cost Value
----------- ----------- -----------
Investments in MFS/Sun Life
Series Trust:
Capital Appreciation
Series ("CAS")..................... 6,678 $ 276,456 $ 361,418
Emerging Growth Series ("EGS")...... 12,841 331,342 517,223
Government Securities
Series ("GSS")..................... 51,831 660,774 646,852
Massachusetts Investors Growth Stock
Series ("MIS")..................... 14,550 191,684 234,686
Money Market Series ("MMS")......... 1,160,850 1,160,850 1,160,850
Research Series ("RES")............. 502 12,298 13,868
Total Return Series ("TRS")......... 85,790 1,760,321 1,609,419
Utilities Series ("UTS")............ 2,505 45,465 49,695
Global Growth Series ("WGO")........ 97,200 1,536,316 2,445,542
Investments in Fidelity Variable
Insurance Products Fund:
VIP Equity Income Portfolio
("FEI")............................ 122,532 2,975,765 3,150,302
VIP Growth Portfolio ("FGP")........ 114,130 4,599,646 6,269,166
VIP High Income Portfolio ("FHI")... 12,719 140,897 143,849
VIP Money Market Portfolio
("FMM")............................ 498,795 498,795 498,795
Investments in Fidelity Variable
Insurance Products Fund II:
VIP II Asset Manager: Growth
Portfolio ("FAM").................. 812 14,635 14,923
VIP II Contrafund Portfolio
("FCN")............................ 33,270 749,225 969,813
VIP II Investment Grade Bond
Portfolio ("FIG").................. 35,917 438,909 436,754
VIP II Index 500 Portfolio
("FIP")............................ 47,672 6,305,826 7,980,799
Investments in Neuberger Berman
Advisers Management Trust:
Limited Maturity Bond Portfolio
("NLM")............................ -- -- --
Mid-Cap Growth Portfolio ("NMC").... 1,676 32,969 40,732
Partners Portfolio ("NPP").......... 72,113 1,390,772 1,416,309
Investments in J.P. Morgan
Series Trust II
J.P. Morgan Bond Portfolio
("JBP")............................ 140,380 1,623,008 1,577,873
J.P. Morgan Equity Portfolio
("JEP")............................ 19,933 325,572 345,830
J.P. Morgan Small Company Portfolio
("JSC")............................ 22,651 269,755 378,950
Investments in Templeton Variable
Products Series Fund:
Templeton Stock Fund: Class 1
("TSF")............................ 33,168 703,061 808,958
Investments in Dreyfus Variable
Investment Fund
Capital Appreciation Portfolio
("DCA")............................ 1,896 75,773 75,596
Small Cap Portfolio ("DSC")......... 807 47,445 53,526
Quality Bond Portfolio ("DQB")...... 3,688 40,359 40,162
Investments in Dreyfus Stock Index
Fund ("DSI")......................... 67,700 2,386,167 2,603,064
Investments in T. Rowe Price Equity
Series, Inc.
T. Rowe Price Equity Income
Portfolio ("REI").................. 4,456 94,621 83,470
T. Rowe Price New America Growth
Portfolio ("RNA").................. 1,019 25,169 26,690
Investments in AIM Variable Insurance
Funds, Inc.
AIM V.I. Value Fund ("AVF")......... 1,867 59,417 62,537
Investments in Sun Capital Advisers
Trust
Real Estate Fund ("SRE")............ 499 4,615 4,458
----------- -----------
NET ASSETS..................................... $28,777,907 $34,022,109
=========== ===========
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENT OF CONDITION
-- December 31, 1999 -- continued
<TABLE>
<CAPTION>
Units Unit Value Value
-------- ---------- -----------
<S> <C> <C> <C>
NET ASSETS APPLICABLE TO CONTRACT OWNERS:
CAS..................................................... 21,325 $16.9479 $ 361,418
EGS..................................................... 19,972 25.8976 517,223
GSS..................................................... 57,382 11.2728 646,852
MIS..................................................... 18,354 12.7854 234,686
MMS..................................................... 112,538 10.3154 1,160,850
RES..................................................... 1,061 13.0662 13,868
TRS..................................................... 133,786 12.0298 1,609,419
UTS..................................................... 3,595 13.8242 49,695
WGO..................................................... 120,770 20.2495 2,445,542
FEI..................................................... 243,225 12.9522 3,150,302
FGP..................................................... 319,434 19.6258 6,269,166
FHI..................................................... 13,073 11.0037 143,849
FMM..................................................... 32,578 11.7164 381,662
FAM..................................................... 1,243 11.9859 14,923
FCN..................................................... 54,448 17.8118 969,813
FIG..................................................... 41,448 10.5374 436,754
FIP..................................................... 446,730 17.8649 7,980,799
NLM..................................................... -- 10.9661 --
NMC..................................................... 2,337 17.4307 40,732
NPP..................................................... 119,392 11.8626 1,416,309
JBP..................................................... 139,098 11.3436 1,577,873
JEP..................................................... 23,144 14.9425 345,830
JSC..................................................... 25,442 14.8946 378,950
TSF..................................................... 64,260 12.5888 808,958
DCA..................................................... 6,135 12.3214 75,596
DSC..................................................... 5,073 10.5506 53,526
DQB..................................................... 3,920 10.2460 40,162
DSI..................................................... 238,427 10.9176 2,603,064
REI..................................................... 8,149 10.2471 83,470
RNA..................................................... 2,301 11.6010 26,690
AVF..................................................... 5,311 11.7742 62,537
SRE..................................................... 481 9.2632 4,458
-----------
Net Assets Applicable to Contract Owners.............. 33,904,976
-----------
Net Assets Applicable to Sponsor...................... 10,000 11.7164 117,133
-----------
Total Net Assets........................................................... $34,022,109
===========
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS -- Year Ended December 31, 1999
<TABLE>
<CAPTION>
CAS EGS GSS MIS(c) MMS(e)
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $16,738 $ 739 $ 16,132 $ -- $12,356
------- -------- -------- -------- -------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $35,475 $ 29,864 $ 29,361 $ 28,582 $74,769
Cost of investments sold............ 34,739 20,182 30,498 28,218 74,769
------- -------- -------- -------- -------
Net realized gains (losses)......... $ 736 $ 9,682 $ (1,137) $ 364 $--
------- -------- -------- -------- -------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $84,962 $185,881 $(13,922) $ 43,002 $--
Beginning of year................... 15,085 6,747 6,736 -- --
------- -------- -------- -------- -------
Change in unrealized appreciation
(depreciation) $69,877 $179,134 $(20,658) $ 43,002 $--
------- -------- -------- -------- -------
Realized and unrealized gains
(losses) $70,613 $188,816 $(21,795) $ 43,366 $--
------- -------- -------- -------- -------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $87,351 $189,555 $ (5,663) $ 43,366 $12,356
======= ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
RES(g) TRS UTS(g) WGO FEI FGP
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $-- $ 195,833 $-- $ 53,421 $ 84,128 $ 289,893
------- --------- ------- -------- -------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 3,043 $ 96,777 $10,696 $ 57,407 $213,255 $ 299,001
Cost of investments sold............ 3,005 108,533 10,308 44,321 191,639 235,065
------- --------- ------- -------- -------- ----------
Net realized gains (losses)......... $ 38 $ (11,756) $ 388 $ 13,086 $ 21,616 $ 63,936
------- --------- ------- -------- -------- ----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 1,570 $(150,902) $ 4,230 $909,226 $174,537 $1,669,520
Beginning of year................... -- (6,224) -- 27,953 124,054 530,726
------- --------- ------- -------- -------- ----------
Change in unrealized appreciation
(depreciation)................... $ 1,570 $(144,678) $ 4,230 $881,273 $ 50,483 $1,138,794
------- --------- ------- -------- -------- ----------
Realized and unrealized gains
(losses)........................... $ 1,608 $(156,434) $ 4,618 $894,359 $ 72,099 $1,202,730
------- --------- ------- -------- -------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 1,608 $ 39,399 $ 4,618 $947,780 $156,227 $1,492,623
======= ========= ======= ======== ======== ==========
</TABLE>
(c) For the period June 25, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(e) For the period July 9, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
4
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
FHI FMM FAM(f) FCN FIG(a) FIP
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 16,590 $25,843 $-- $ 21,709 $-- $ 77,078
--------- ------- ------- -------- ------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:........................
Proceeds from sales................. $ 135,012 $85,735 $ 1,478 $127,378 $10,746 $ 857,484
Cost of investments sold............ 138,997 85,735 1,507 110,032 10,811 614,816
--------- ------- ------- -------- ------- ----------
Net realized gains (losses)......... $ (3,985) $-- $ (29) $ 17,346 $ (65) $ 242,668
--------- ------- ------- -------- ------- ----------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 2,952 $-- $ 288 $220,588 $(2,155) $1,674,973
Beginning of year................... 1,576 -- -- 97,673 -- 698,312
--------- ------- ------- -------- ------- ----------
Change in unrealized appreciation
(depreciation)................... $ 1,376 $-- $ 288 $122,915 $(2,155) $ 976,661
--------- ------- ------- -------- ------- ----------
Realized and unrealized gains
(losses)........................... $ (2,609) $-- $ 259 $140,261 $(2,220) $1,219,329
--------- ------- ------- -------- ------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 13,981 $25,843 $ 259 $161,970 $(2,220) $1,296,407
========= ======= ======= ======== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
NLM NMC(g) NPP JBP JEP JSC
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 1,845 $-- $ 33,511 $ 38,128 $24,316 $ 8,658
------- ------- -------- -------- ------- --------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $35,367 $18,887 $206,506 $145,174 $62,763 $269,500
Cost of investments sold............ 36,650 18,760 230,390 148,386 59,834 272,546
------- ------- -------- -------- ------- --------
Net realized gains (losses)......... $(1,283) $ 127 $(23,884) $ (3,212) $ 2,929 $ (3,046)
------- ------- -------- -------- ------- --------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $-- $ 7,763 $ 25,537 $(45,135) $20,258 $109,195
Beginning of year................... 489 -- (48,732) 6,550 4,990 (11,212)
------- ------- -------- -------- ------- --------
Change in unrealized appreciation
(depreciation)................... $ (489) $ 7,763 $ 74,269 $(51,685) $15,268 $120,407
------- ------- -------- -------- ------- --------
Realized and unrealized gains
(losses)........................... $(1,772) $ 7,890 $ 50,385 $(54,897) $18,197 $117,361
------- ------- -------- -------- ------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 73 $ 7,890 $ 83,896 $(16,769) $42,513 $126,019
======= ======= ======== ======== ======= ========
</TABLE>
(a) For the period March 16, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(f) For the period July 22, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
5
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999 -- continued
<TABLE>
<CAPTION>
TSF DCA(h) DSC(c) DQB(c) DSI(b) REI(d)
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 49,240 $ 716 $-- $ 1,154 $ 27,435 $ 3,752
--------- ------ ------- ------- -------- --------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $ 145,459 $7,016 $19,465 $ 968 $ 59,634 $ 13,282
Cost of investments sold............ 160,884 6,981 20,444 967 60,615 14,314
--------- ------ ------- ------- -------- --------
Net realized gains (losses)......... $ (15,425) $ 35 $ (979) $ 1 $ (981) $ (1,032)
--------- ------ ------- ------- -------- --------
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 105,897 $ (177) $ 6,081 $ (197) $216,897 $(11,151)
Beginning of year................... (22,684) -- -- -- -- --
--------- ------ ------- ------- -------- --------
Change in unrealized appreciation
(depreciation)................... $ 128,581 $ (177) $ 6,081 $ (197) $216,897 $(11,151)
--------- ------ ------- ------- -------- --------
Realized and unrealized gains
(losses)........................... $ 113,156 $ (142) $ 5,102 $ (196) $215,916 $(12,183)
--------- ------ ------- ------- -------- --------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 162,396 $ 574 $ 5,102 $ 958 $243,351 $ (8,431)
========= ====== ======= ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
RNA(g) AVF(f) SRE(g)
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received............... $ 1,529 $ 772 $ 236
------- ------- -----
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales................. $12,599 $11,213 $ 116
Cost of investments sold............ 13,318 11,155 121
------- ------- -----
Net realized gains (losses)......... $ (719) $ 58 $ (5)
------- ------- -----
Net unrealized appreciation
(depreciation) on investments:
End of year......................... $ 1,521 $ 3,120 $(157)
Beginning of year................... -- -- --
------- ------- -----
Change in unrealized appreciation
(depreciation)................... $ 1,521 $ 3,120 $(157)
------- ------- -----
Realized and unrealized gains
(losses)........................... $ 802 $ 3,178 $(162)
------- ------- -----
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS............................. $ 2,331 $ 3,950 $ 74
======= ======= =====
</TABLE>
(b) For the period May 6, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(c) For the period June 25, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(d) For the period June 30, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(f) For the period July 22, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(h) For the period August 3, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
6
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS EGS
Sub-Account Sub-Account
---------------------------- ----------------------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 16,738 $ 7,994 $ 739 $ 598
Net realized gains (losses)............................... 736 (2,035) 9,682 362
Net unrealized gains (losses)............................. 69,877 15,085 179,134 6,490
-------- -------- -------- -------
Increase (Decrease) in net assets from operations..... $ 87,351 $ 21,044 $189,555 $ 7,450
-------- -------- -------- -------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $ 88,046 $ 69,165 $ 76,314 $18,930
Net transfers between Sub-Accounts...................... 59,089 49,909 216,689 13,669
Withdrawals, surrenders, annuitizations and contract
charges................................................ (9,282) (3,904) (7,146) (1,061)
-------- -------- -------- -------
Increase (Decrease) in net assets from contract owner
transactions............................................. $137,853 $115,170 $285,857 $31,538
-------- -------- -------- -------
Increase (Decrease) in net assets....................... $225,204 $136,214 $475,412 $38,988
NET ASSETS:
Beginning of year......................................... 136,214 -- 41,811 2,823
-------- -------- -------- -------
End of year............................................... $361,418 $136,214 $517,223 $41,811
======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
GSS MIS(c) MMS(e)
Sub-Account Sub-Account Sub-Account
----------------------------- ------------ ------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1999
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 16,132 $ 8,657 $ -- $ 12,356
Net realized gains (losses)............................... (1,137) 186 364 --
Net unrealized gains (losses)............................. (20,658) 6,237 43,002 --
-------- -------- -------- ----------
Increase (Decrease) in net assets from operations..... $ (5,663) $ 15,080 $ 43,366 $ 12,356
-------- -------- -------- ----------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $313,310 $165,413 $111,816 $ 897,156
Net transfers between Sub-Accounts...................... 23,430 -- 84,273 262,777
Withdrawals, surrenders, annuitizations and contract
charges................................................ (13,273) (7,748) (4,769) (11,439)
-------- -------- -------- ----------
Increase (Decrease) in net assets from contract owner
transactions............................................. $323,467 $157,665 $191,320 $1,148,494
-------- -------- -------- ----------
Increase (Decrease) in net assets....................... $317,804 $172,745 $234,686 $1,160,850
NET ASSETS:
Beginning of year......................................... 329,048 156,303 -- --
-------- -------- -------- ----------
End of year............................................... $646,852 $329,048 $234,686 $1,160,850
======== ======== ======== ==========
</TABLE>
(c) For the period June 25, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(e) For the period July 9, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
7
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES(g) TRS UTS(g)
Sub-Account Sub-Account Sub-Account
------------- ---------------------------- ------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1999 1999 1998 1999
------------- ------------ ------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $-- $ 195,833 $ 64,091 $--
Net realized gains (losses)............................... 38 (11,756) 4,643 388
Net unrealized gains (losses)............................. 1,570 (144,678) (6,224) 4,230
------- ---------- --------- -------
Increase (Decrease) in net assets from operations..... $ 1,608 $ 39,399 $ 62,510 $ 4,618
------- ---------- --------- -------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $12,837 $ 872,032 $ 742,106 $54,335
Net transfers between Sub-Accounts...................... 1 96,648 (115,350) (6,705)
Withdrawals, surrenders, annuitizations and contract
charges................................................ (578) (52,973) (34,953) (2,553)
------- ---------- --------- -------
Increase (Decrease) in net assets from contract owner
transactions............................................. $12,260 $ 915,707 $ 591,803 $45,077
------- ---------- --------- -------
Increase (Decrease) in net assets....................... $13,868 $ 955,106 $ 654,313 $49,695
NET ASSETS:
Beginning of year......................................... -- 654,313 -- --
------- ---------- --------- -------
End of year............................................... $13,868 $1,609,419 $ 654,313 $49,695
======= ========== ========= =======
</TABLE>
<TABLE>
<CAPTION>
WGO FEI FGP
Sub-Account Sub-Account Sub-Account
----------------------------- --------------------------- -----------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------- ------------- ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)...... $ 53,421 $ 39,888 $ 84,128 $ 821 $ 289,893 $ 34,173
Net realized gains (losses)....... 13,086 1,466 21,616 (5,033) 63,936 1,372
Net unrealized gains (losses)..... 881,273 16,998 50,483 122,975 1,138,794 529,196
---------- -------- ---------- ---------- ---------- ----------
Increase (Decrease) in net
assets from operations....... $ 947,780 $ 58,352 $ 156,227 $ 118,763 $1,492,623 $ 564,741
---------- -------- ---------- ---------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received...... $ 743,442 $540,355 $1,800,084 $1,756,032 $2,503,859 $1,547,362
Net transfers between
Sub-Accounts................... 20,392 2,700 (445,069) (58,426) (100,061) 259,472
Withdrawals, surrenders,
annuitizations and contract
charges........................ (46,986) (26,751) (111,858) (78,355) (165,490) (80,050)
---------- -------- ---------- ---------- ---------- ----------
Increase (Decrease) in net assets
from contract owner
transactions..................... $ 716,848 $516,304 $1,243,157 $1,619,251 $2,238,308 $1,726,784
---------- -------- ---------- ---------- ---------- ----------
Increase (Decrease) in net
assets......................... $1,664,628 $574,656 $1,399,384 $1,738,014 $3,730,931 $2,291,525
NET ASSETS:
Beginning of year................. 780,914 206,258 1,750,918 12,904 2,538,235 246,710
---------- -------- ---------- ---------- ---------- ----------
End of year....................... $2,445,542 $780,914 $3,150,302 $1,750,918 $6,269,166 $2,538,235
========== ======== ========== ========== ========== ==========
</TABLE>
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
8
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FHI FMM FAM(f)
Sub-Account Sub-Account Sub-Account
---------------------------- ---------------------------- ------------
Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999
------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....................... $ 16,590 $ -- $ 25,843 $ 32,102 $--
Net realized gains (losses)........................ (3,985) (254) -- -- (29)
Net unrealized gains (losses)...................... 1,376 1,576 -- -- 288
--------- -------- --------- ----------- -------
Increase (Decrease) in net assets from
operations.................................... $ 13,981 $ 1,322 $ 25,843 $ 32,102 $ 259
--------- -------- --------- ----------- -------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received....................... $ 96,271 $ 75,590 $ 243,917 $ 1,495,810 $ 6,389
Net transfers between Sub-Accounts............... (125,515) 94,193 (187,845) (1,173,716) 8,929
Withdrawals, surrenders, annuitizations and
contract charges................................ (8,324) (3,669) (14,221) (28,796) (654)
--------- -------- --------- ----------- -------
Increase (Decrease) in net assets from contract
owner transactions................................ $ (37,568) $166,114 $ 41,851 $ 293,298 $14,664
--------- -------- --------- ----------- -------
Increase (Decrease) in net assets................ $ (23,587) $167,436 $ 67,694 $ 325,400 $14,923
NET ASSETS:
Beginning of year.................................. 167,436 -- 431,101 105,701 --
--------- -------- --------- ----------- -------
End of year........................................ $ 143,849 $167,436 $ 498,795 $ 431,101 $14,923
========= ======== ========= =========== =======
</TABLE>
<TABLE>
<CAPTION>
FCN FIG(a) FIP
Sub-Account Sub-Account Sub-Account
--------------------------- ------------ ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1999 1998
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......................... $ 21,709 $ 382 $ -- $ 77,078 $ 48,449
Net realized gains (losses).......................... 17,346 1,167 (65) 242,668 111,953
Net unrealized gains (losses)........................ 122,915 97,064 (2,155) 976,661 595,373
-------- -------- -------- ---------- ----------
Increase (Decrease) in net assets from
operations...................................... $161,970 $ 98,613 $ (2,220) $1,296,407 $ 755,775
-------- -------- -------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received......................... $361,996 $153,403 $216,815 $2,751,116 $2,846,625
Net transfers between Sub-Accounts................. (41,751) 268,273 233,259 (208,570) 320,272
Withdrawals, surrenders, annuitizations and
contract charges.................................. (31,364) (7,846) (11,100) (234,696) (524,138)
-------- -------- -------- ---------- ----------
Increase (Decrease) in net assets from contract owner
transactions........................................ $288,881 $413,830 $438,974 $2,307,850 $2,642,759
-------- -------- -------- ---------- ----------
Increase (Decrease) in net assets.................. $450,851 $512,443 $436,754 $3,604,257 $3,398,534
NET ASSETS:
Beginning of year.................................... 518,962 6,519 -- 4,376,542 978,008
-------- -------- -------- ---------- ----------
End of year.......................................... $969,813 $518,962 $436,754 $7,980,799 $4,376,542
======== ======== ======== ========== ==========
</TABLE>
(a) For the period March 16, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(f) For the period July 22, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
9
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
NLM NMC(g) NPP
Sub-Account Sub-Account Sub-Account
--------------------------- ------------ ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1999 1998
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)......................... $ 1,845 $ 167 $-- $ 33,511 $ 97,246
Net realized gains (losses).......................... (1,283) 506 127 (23,884) (40,762)
Net unrealized gains (losses)........................ (489) 399 7,763 74,269 (49,692)
-------- ------- ------- ---------- ----------
Increase (Decrease) in net assets from
operations...................................... $ 73 $ 1,072 $ 7,890 $ 83,896 $ 6,792
-------- ------- ------- ---------- ----------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received......................... $ 3,519 $26,898 $36,642 $ 568,576 $ 829,194
Net transfers between Sub-Accounts................. (34,632) 2,696 (2,311) (193,236) 80,931
Withdrawals, surrenders, annuitizations and
contract charges.................................. (741) (1,541) (1,489) (43,019) (40,375)
-------- ------- ------- ---------- ----------
Increase (Decrease) in net assets from contract owner
transactions........................................ $(31,854) $28,053 $32,842 $ 332,321 $ 869,750
-------- ------- ------- ---------- ----------
Increase (Decrease) in net assets.................. $(31,781) $29,125 $40,732 $ 416,217 $ 876,542
NET ASSETS:
Beginning of year.................................... 31,781 2,656 -- 1,000,092 123,550
-------- ------- ------- ---------- ----------
End of year.......................................... $ -- $31,781 $40,732 $1,416,309 $1,000,092
======== ======= ======= ========== ==========
</TABLE>
<TABLE>
<CAPTION>
JBP JEP JSC
Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- ---------------------------
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 38,128 $ 32,711 $ 24,316 $ 19,117 $ 8,658 $ 12,274
Net realized gains (losses)........... (3,212) 7,002 2,929 13,026 (3,046) (28,111)
Net unrealized gains (losses)......... (51,685) 6,645 15,268 4,990 120,407 (11,212)
---------- --------- -------- -------- -------- --------
Increase (Decrease) in net assets
from operations.................. $ (16,769) $ 46,358 $ 42,513 $ 37,133 $126,019 $(27,049)
---------- --------- -------- -------- -------- --------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.......... $ 874,712 $ 971,373 $155,378 $267,400 $175,595 $281,469
Net transfers between
Sub-Accounts....................... (25,002) 42,894 (45,294) (92,224) (232,970) 87,065
Withdrawals, surrenders,
annuitizations and contract
charges............................ (48,051) (366,856) (10,709) (8,367) (16,242) (14,937)
---------- --------- -------- -------- -------- --------
Increase (Decrease) in net assets from
contract owner transactions.......... $ 801,659 $ 647,411 $ 99,375 $166,809 $(73,617) $353,597
---------- --------- -------- -------- -------- --------
Increase (Decrease) in net assets... $ 784,890 $ 693,769 $141,888 $203,942 $ 52,402 $326,548
NET ASSETS:
Beginning of year..................... 792,983 99,214 203,942 -- 326,548 --
---------- --------- -------- -------- -------- --------
End of year........................... $1,577,873 $ 792,983 $345,830 $203,942 $378,950 $326,548
========== ========= ======== ======== ======== ========
</TABLE>
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
10
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
TSF DCA(h) DSC(c)
Sub-Account Sub-Account Sub-Account
--------------------------- ------------ ------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 49,240 $ 22,221 $ 716 $ --
Net realized gains (losses)............................... (15,425) (24,809) 35 (979)
Net unrealized gains (losses)............................. 128,581 (21,918) (177) 6,081
-------- -------- ------- --------
Increase (Decrease) in net assets from operations..... $162,396 $(24,506) $ 574 $ 5,102
-------- -------- ------- --------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $305,091 $257,817 $84,406 $ 61,004
Net transfers between Sub-Accounts...................... (120,364) 189,442 28 (10,803)
Withdrawals, surrenders, annuitizations and contract
charges................................................ (23,726) (17,017) (9,412) (1,777)
-------- -------- ------- --------
Increase (Decrease) in net assets from contract owner
transactions............................................. $161,001 $430,242 $75,022 $ 48,424
-------- -------- ------- --------
Increase (Decrease) in net assets....................... $323,397 $405,736 $75,596 $ 53,526
NET ASSETS:
Beginning of year......................................... 485,561 79,825 -- --
-------- -------- ------- --------
End of year............................................... $808,958 $485,561 $75,596 $ 53,526
======== ======== ======= ========
</TABLE>
<TABLE>
<CAPTION>
DQB(c) DSI(b) REI(d)
Sub-Account Sub-Account Sub-Account
------------ ------------ ------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1999 1999 1999
------------ ------------ ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 1,154 $ 27,435 $ 3,752
Net realized gains (losses)............................... 1 (981) (1,032)
Net unrealized gains (losses)............................. (197) 216,897 (11,151)
------- ---------- --------
Increase (Decrease) in net assets from operations..... $ 958 $ 243,351 $ (8,431)
------- ---------- --------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $40,487 $1,676,584 $ 42,160
Net transfers between Sub-Accounts...................... -- 723,185 51,428
Withdrawals, surrenders, annuitizations and contract
charges................................................ (1,283) (40,056) (1,687)
------- ---------- --------
Increase (Decrease) in net assets from contract owner
transactions............................................. $39,204 $2,359,713 $ 91,901
------- ---------- --------
Increase (Decrease) in net assets....................... $40,162 $2,603,064 $ 83,470
NET ASSETS:
Beginning of year......................................... -- -- --
------- ---------- --------
End of year............................................... $40,162 $2,603,064 $ 83,470
======= ========== ========
</TABLE>
(b) For the period May 6, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(c) For the period June 25, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(d) For the period June 30, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(h) For the period August 3, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
11
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RNA(g) AVF(f) SRE(g)
Sub-Account Sub-Account Sub-Account
------------ ------------ ------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1999 1999 1999
------------ ------------ ------------
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 1,529 $ 772 $ 236
Net realized gains (losses)............................... (719) 58 (5)
Net unrealized gains (losses)............................. 1,521 3,120 (157)
------- ------- ------
Increase (Decrease) in net assets from operations..... $ 2,331 $ 3,950 $ 74
------- ------- ------
CONTRACT OWNER TRANSACTIONS:
Purchase payments received.............................. $24,658 $47,123 $4,497
Net transfers between Sub-Accounts...................... 602 13,399 (113)
Withdrawals, surrenders, annuitizations and contract
charges................................................ (901) (1,935) --
------- ------- ------
Increase (Decrease) in net assets from contract owner
transactions............................................. $24,359 $58,587 $4,384
------- ------- ------
Increase (Decrease) in net assets....................... $26,690 $62,537 $4,458
NET ASSETS:
Beginning of year......................................... -- -- --
------- ------- ------
End of year............................................... $26,690 $62,537 $4,458
======= ======= ======
</TABLE>
(f) For the period July 22, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
See notes to financial statements
12
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life of Canada (U.S.) Variable Account G (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor"),
was established on July 25, 1996 as a funding vehicle for the variable portion
of certain individual variable life insurance contracts. The Variable Account is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940 as a unit investment trust.
The assets of the Variable Account are divided into Sub-Accounts. Each
Sub-Account is invested in shares of a single corresponding investment portfolio
of one of the following mutual funds: MFS/Sun Life Series Trust, Fidelity
Variable Insurance Products Fund, Fidelity Variable Insurance Products Fund II,
Neuberger Berman Advisers Management Trust, J.P. Morgan Series Trust II,
Templeton Variable Products Series Fund, Dreyfus Variable Investment Fund,
Dreyfus Stock Index Fund, T. Rowe Price Equity Series, Inc., AIM Variable
Insurance Funds, Inc. and Sun Capital Advisers Trust. Massachusetts Financial
Services Company, an affiliate of the Sponsor, is the investment adviser to
MFS/Sun Life Series Trust. Sun Capital Advisers, Inc., an affiliate of the
Sponsor, is the investment adviser to Sun Capital Advisers Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Sponsor's management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
INVESTMENT VALUATIONS
Investments in shares of an investment portfolio of the mutual funds are
recorded at their net asset value. Realized gains and losses on sales of shares
are determined on the identified cost basis. Dividend income and capital gain
distributions received by the Sub-Accounts are reinvested in additional shares
and are recognized on the ex-dividend date.
Exchanges between Sub-Accounts requested by contract owners are recorded in the
new Sub-Account upon receipt of the redemption proceeds.
FEDERAL INCOME TAX STATUS
The operations of the Variable Account are part of the operations of the Sponsor
and are not taxed separately. The Variable Account is not taxed as a regulated
investment company. The Sponsor qualifies for the federal income tax treatment
granted to life insurance companies under Subchapter L of the Internal Revenue
Code. Under existing federal income tax law, investment income and capital gains
earned by the Variable Account on contract owner reserves are not taxable, and
therefore, no provision has been made for federal income taxes.
13
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES
The Sponsor deducts expense charges applied to premium consisting of the premium
tax, the federal DAC (Deferred Acquisition Cost) tax and the sales load. The
premium tax varies by state but in general will range from 2% to 4% of the
premium in most states (Kentucky charges 7%). The DAC tax charge is 1.25% of the
premium. The sales load is 8.75% of the premium up to target premium and 2.25%
of the premium in excess of the target premium. A portion of the sales load is
refunded for surrenders in the first three policy years.
The Sponsor deducts certain charges from the account value of each contract,
through the cancellation of units, on a monthly basis. A monthly expense charge
of $13.75 per policy at the beginning of each month during the first policy year
and $7.50 for months thereafter is deducted to recover certain administration
expenses. The Sponsor also deducts a charge at the end of each policy month for
providing life insurance protection. This charge will be based upon the
Sponsor's expectations of future mortality, persistency, interest rates,
expenses and taxes. However, the maximum rates for the base death benefit for
insureds that are not rated substandard risks will not exceed those based on the
1980 CSO Mortality Tables, and the maximum rates for the APB rider death benefit
for similar insureds will not exceed those based on 125% of the 1980 CSO
Mortality Tables.
The Sponsor deducts certain charges from the account value of each contract,
through the cancellation of units, at the end of each valuation period for the
mortality and expense risks assumed by the Sponsor. The daily deduction is
currently 0.0016389% (which is equivalent to an annual rate of 0.60%) for
policies in their first ten policy years, 0.0005474% (which is equivalent to an
annual rate of 0.20%) for the next ten policy years and 0.0002738% (which is
equivalent to an annual rate of 0.10%) for policies in policy years twenty-one
and beyond.
14
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT G
NOTES TO FINANCIAL STATEMENTS -- continued
(4) TRANSACTIONS IN UNITS OUTSTANDING
<TABLE>
<CAPTION>
Units Withdrawn,
Units Transferred Surrendered and
Units Outstanding Between Canceled for
Beginning of Year Units Purchased Sub-Accounts Contract Charges
---------------------- --------------------- ---------------------- ---------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Sub-Accounts 1999 1998 1999 1998 1999 1998 1999 1998
- ------------ ---------- ----------- --------- ----------- --------- ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CAS.................................. 10,660 -- 6,528 6,564 4,820 4,445 (683) (349)
EGS.................................. 2,838 257 4,390 1,599 13,133 1,067 (389) (85)
GSS.................................. 28,642 14,789 27,845 14,555 2,074 -- (1,179) (702)
MIS(c)............................... -- -- 10,765 -- 8,040 -- (451) --
MMS(e)............................... -- -- 87,693 -- 25,960 -- (1,115) --
RES(g)............................... -- -- 1,112 -- -- -- (51) --
TRS.................................. 55,937 -- 74,038 69,056 8,235 (10,148) (4,424) (2,971)
UTS(g)............................... -- -- 4,370 -- (402) -- (373) --
WGO.................................. 64,502 19,525 57,783 46,090 1,889 1,282 (3,404) (2,395)
FEI.................................. 143,740 1,182 143,020 155,915 (34,888) (6,554) (8,647) (6,803)
FGP.................................. 177,748 24,099 158,594 137,491 (6,477) 22,870 (10,431) (6,712)
FHI.................................. 16,457 -- 8,913 7,374 (11,529) 9,430 (768) (347)
FMM.................................. 28,692 -- 21,693 141,043 (16,561) (109,762) (1,246) (2,589)
FAM(f)............................... -- -- 569 -- 733 -- (59) --
FCN.................................. 36,202 591 23,174 9,406 (2,910) 26,828 (2,018) (623)
FIG(a)............................... -- -- 20,475 -- 22,028 -- (1,055) --
FIP.................................. 295,225 84,660 178,054 225,497 (11,909) 24,933 (14,640) (39,865)
NLM.................................. 2,941 257 325 2,523 (3,198) 305 (68) (144)
NMC(g)............................... -- -- 2,847 -- (395) -- (115) --
NPP.................................. 90,519 11,653 48,750 76,494 (16,164) 6,112 (3,713) (3,740)
JBP.................................. 69,180 9,348 76,407 89,677 (2,247) 3,925 (4,242) (33,770)
JEP.................................. 16,179 -- 11,028 24,048 (3,276) (7,212) (787) (657)
JSC.................................. 31,656 -- 16,256 27,699 (20,958) 5,298 (1,512) (1,341)
TSF.................................. 49,794 8,289 27,536 27,080 (10,852) 16,159 (2,218) (1,734)
DCA(h)............................... -- -- 6,907 -- -- -- (772) --
DSC(c)............................... -- -- 6,511 -- (1,247) -- (191) --
DQB(c)............................... -- -- 4,047 -- -- -- (127) --
DSI(b)............................... -- -- 171,041 -- 71,377 -- (3,991) --
REI(d)............................... -- -- 3,780 -- 4,527 -- (158) --
RNA(g)............................... -- -- 2,358 -- 29 -- (86) --
AVF(f)............................... -- -- 4,390 -- 1,104 -- (183) --
SRE(g)............................... -- -- 494 -- -- -- (13) --
Unit Activity
From Sponsor Transactions............ 10,000 10,000 -- -- -- -- -- --
<CAPTION>
Units Outstanding
End of Year
---------------------
Year Year
Ended Ended
Dec. 31, Dec. 31,
Sub-Accounts 1999 1998
- ------------ --------- -----------
<S> <C> <C>
CAS.................................. 21,325 10,660
EGS.................................. 19,972 2,838
GSS.................................. 57,382 28,642
MIS(c)............................... 18,354 --
MMS(e)............................... 112,538 --
RES(g)............................... 1,061 --
TRS.................................. 133,786 55,937
UTS(g)............................... 3,595 --
WGO.................................. 120,770 64,502
FEI.................................. 243,225 143,740
FGP.................................. 319,434 177,748
FHI.................................. 13,073 16,457
FMM.................................. 32,578 28,692
FAM(f)............................... 1,243 --
FCN.................................. 54,448 36,202
FIG(a)............................... 41,448 --
FIP.................................. 446,730 295,225
NLM.................................. -- 2,941
NMC(g)............................... 2,337 --
NPP.................................. 119,392 90,519
JBP.................................. 139,098 69,180
JEP.................................. 23,144 16,179
JSC.................................. 25,442 31,656
TSF.................................. 64,260 49,794
DCA(h)............................... 6,135 --
DSC(c)............................... 5,073 --
DQB(c)............................... 3,920 --
DSI(b)............................... 238,427 --
REI(d)............................... 8,149 --
RNA(g)............................... 2,301 --
AVF(f)............................... 5,311 --
SRE(g)............................... 481 --
Unit Activity
From Sponsor Transactions............ 10,000 10,000
</TABLE>
(a) For the period March 16, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(b) For the period May 6, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(c) For the period June 25, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(d) For the period June 30, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(e) For the period July 9, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(f) For the period July 22, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(g) For the period August 2, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
(h) For the period August 3, 1999 (commencement of operations of Sub-Account)
through December 31, 1999.
15
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners participating in Sun Life of Canada (U.S.) Variable
Account G and the Board of Directors of Sun Life Assurance Company of Canada
(U.S.):
We have audited the accompanying statement of condition of Capital Appreciation
Sub-Account, Emerging Growth Sub-Account, Government Securities Sub-Account,
Massachusetts Investors Growth Stock Sub-Account, Money Market Sub-Account,
Research Sub-Account, Total Return Sub-Account, Utilities Sub-Account, Global
Growth Sub-Account, VIP Equity Income Sub-Account, VIP Growth Sub-Account, VIP
High Income Sub-Account, VIP Money Market Sub-Account, VIP II Asset Manager:
Growth Sub-Account, VIP II Contrafund Sub-Account, VIP II Investment Grade Bond
Sub-Account, VIP II Index 500 Sub-Account, Limited Maturity Bond Sub-Account,
Mid-Cap Growth Sub-Account, Partners Sub-Account, J.P. Morgan Bond Sub-Account,
J.P. Morgan Equity Sub-Account, J.P. Morgan Small Company Sub-Account, Templeton
Stock Fund: Class 1 Sub-Account, Capital Appreciation Sub-Account, Small Cap
Sub-Account, Quality Bond Sub-Account, Dreyfus Stock Index Sub-Account, T. Rowe
Price Equity Income Sub-Account, T. Rowe Price New America Growth Sub-Account,
AIM V.I. Value Sub-Account and Real Estate Sub-Account of Sun Life of Canada
(U.S.) Variable Account G (the "Sub-Accounts") as of December 31, 1999, the
related statement of operations for the year then ended and the statements of
changes in net assets for the years ended December 31, 1999 and 1998. These
financial statements are the responsibility of management. Our responsibility is
to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at December 31, 1999 by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Sub-Accounts at December 31, 1999, the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 10, 2000
<PAGE>
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
JAMES A. McNULTY, III, Senior Vice President,
General Manager and Director
S. CAESAR RABOY, Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
GREGORY W. GEE, Director
ANGUS A. MacNAUGHTON, Director
PETER F. DEMUTH, Vice President,
Chief Counsel and Assistant Secretary
DAVEY S. SCOON, Vice President, Finance
and Treasurer
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and
Actuary
JAMES M.A. ANDERSON, Vice President, Investments
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
CORPORATE MARKETS:
One Sun Life Executive Park
Wellesley Hills, MA 02481
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park, Wellesley Hills, MA 02481
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston, Massachusetts 02116
This report is prepared for the general information of contract owners. It is
authorized for distribution to prospective purchasers only when preceded or
accompanied by an effective prospectus.
SUN LIFE CORPORATE VUL-SM-
ANNUAL REPORT - DECEMBER 31, 1999
PROFESSIONALLY MANAGED LIFE INSURANCE ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.),
A WHOLLY-OWNED SUBSIDIARY OF
SUN LIFE OF CANADA (U.S.) HOLDINGS, INC.
