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SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT B
STATEMENT OF CONDITION
JUNE 30, 1997
ASSETS:
Investment in MFS/Sun Life Series Trust:
Money Market Series ("MMS"),
318,864 shares at $1.00 per share
(cost $318,864) $ 318,864
LIABILITY:
Payable to sponsor (71,609)
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NET ASSETS $ 247,255
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APPLICABLE TO OWNERS OF VARIABLE ANNUITY CONTRACTS:
Deferred contracts (63,923 units at
$2.99768 per unit) $ 191,621
Reserve for variable annuities 55,634
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$ 247,255
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See notes to financial statements.
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SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT B
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1997
INVESTMENT INCOME:
Dividends $ 7,949
EXPENSE:
Mortality and expense risk charges 3,149
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NET INVESTMENT INCOME $ 4,800
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 4,800
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See notes to financial statements.
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SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED
JUNE 30,
1997 1996
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OPERATIONS:
Net investment income $ 4,800 $ 12,089
Net realized losses 0 (29,322)
Net unrealized gains 0 21,971
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Net increase in net assets
from operations 4,800 4,738
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PARTICIPANT TRANSACTIONS:
Accumulation activity:
Redemptions (4,502) (13,840)
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Net accumulation activity (4,502) (13,840)
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Annuitization activity:
Annuity payments (18,486) (7,367)
Actuarial adjustment 1,824 (8,442)
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Net annuitization activity (16,662) (15,809)
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Net decrease in net assets from
participant activity (21,164) (29,649)
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NET DECREASE IN NET ASSETS (16,364) (24,911)
NET ASSETS
Beginning of period 263,619 300,088
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End of period $ 247,255 $ 275,177
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See notes to financial statements.
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SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION:
Sun Life of Canada (U.S.) Variable Account B (the "Variable Account"), a
separate account of Sun Life Assurance Company of Canada (U.S.) (the
"Sponsor") was established as a funding vehicle for individual variable
annuities. The Variable Account is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as a unit
investment trust. 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 tax law, investment income and capital gains of the
Variable Account are not taxable and, therefore, no provision has been
made for federal income taxes.
2. INVESTMENT VALUATIONS:
At June 30, 1996, the Variable Account was fully invested in shares of
Sun Growth Variable Annuity Fund, Inc. ("SGVA"), an affiliated mutual
fund. During 1996, SGVA ceased operations. The Variable Account redeemed
all shares of SGVA and at June 30, 1997 is fully invested in shares of
MFS/Sun Life Series Trust, Money Market Series ("MMS"). Investment in
shares of MMS are recorded at their net asset value. Realized gains and
losses on sales of SGVA and MMS are determined on the identified cost
basis. Dividend income and capital gain distributions received by MMS
are reinvested in additional shares of MMS and are recognized on the ex-
dividend date.
3. MORTALITY AND EXPENSES RISK CHARGES:
A deduction based on the value of either the variable accumulation units
credited to a deferred contract's accumulation account or the annuity
units credited to either an immediate or a deferred contract, as the case
may be, is made by the Sponsor from the Variable Account at the end of
each valuation period for the mortality and expense risks assumed by the
Sponsor. These deductions are transferred periodically to the Sponsor.
Currently, the deduction is at an effective annual rate of 1.0% of the
respective values.
4. RESERVE FOR VARIABLE ANNUITIES:
The reserve for variable annuities (contracts in payment period) has been
calculated using the Progressive Annuity Table (for year of birth 1900)
with interest equal to the assumed interest rate used in determining the
annuity units and the annuity unit values. Separate tables were used for
male and female annuitants. Required adjustments to the reserve will be
accomplished by transfers to or from the Sponsor.
<PAGE>
SUN LIFE OF CANADA (U.S.)
VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. CHANGE IN ACCUMULATION UNITS OUTSTANDING:
Six Months
Ended Year Ended
June 30, 1997 December 31, 1996
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Redeemed during the period (5,563) (6,835)
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Net decrease in accumulation units (5,563) (6,835)
Units outstanding:
Beginning of period 69,486 76,321
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End of period 63,923 69,486
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