<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENT OF CONDITION -- June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
ASSETS:
<S> <C> <C> <C>
Investments in MFS/Sun Life Series Trust: Shares Cost Value
--------- ----------- ------------
Capital Appreciation Series ("CAS")..................... 734,000 $31,442,050 $ 36,589,897
Conservative Growth Series ("MIT")...................... 814,204 26,533,713 28,771,999
Government Securities Series ("GSS").................... 481,946 6,129,731 5,873,004
High Yield Series ("HYS")............................... 660,675 6,110,380 5,412,428
Managed Sectors Series ("MSS").......................... 212,666 8,449,886 8,325,673
Money Market Series ("MMS")............................. 5,405,097 5,405,097 5,405,097
Total Return Series ("TRS")............................. 367,111 7,304,108 6,365,687
Global Governments Series ("GGS")....................... 78,807 840,378 768,730
Zero Coupon Series:
2000 Portfolio ("ZCS-2000")......................... 333,342 2,892,339 2,734,183
----------- ------------
Net Assets:................................................ $95,107,682 $100,246,698
=========== ============
</TABLE>
<TABLE>
<CAPTION>
Units Unit Value Value
NET ASSETS APPLICABLE TO CONTRACT OWNERS: -------------- ---------- ------------
<S> <C> <C> <C>
CAS - Level 1........................................... 6,648 $80.2439 $ 731,798
CAS - Level 2........................................... 442,424 81.3958 35,858,099
MIT - Level 1........................................... 14,302 55.3552 863,160
MIT - Level 2........................................... 500,539 56.1499 27,908,839
GSS - Level 1........................................... 7,237 22.0065 176,190
GSS - Level 2........................................... 255,687 22.3226 5,696,814
HYS - Level 1........................................... 1,465 26.1781 54,124
HYS - Level 2........................................... 202,821 26.5541 5,358,304
MSS - Level 1........................................... 5,446 78.6526 416,284
MSS - Level 2........................................... 98,920 79.7816 7,909,389
MMS - Level 1........................................... 44,213 17.3619 756,714
MMS - Level 2........................................... 263,615 17.6112 4,648,383
TRS - Level 1........................................... 8,214 33.6209 254,627
TRS - Level 2........................................... 179,384 34.1037 6,111,060
GGS - Level 1........................................... 3,461 19.1853 61,498
GGS - Level 2........................................... 36,334 19.4610 707,232
ZCS-2000 - Level 1...................................... 6,970 22.1745 164,051
ZCS-2000 - Level 2...................................... 114,696 22.4931 2,570,132
------------
Net Assets:.................................................................. $100,246,698
============
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
CAS MIT GSS HYS
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME:
Dividend income and capital gain distributions received... $4,586,609 $ 2,170,913 $ 372,508 $ 530,270
----------- ----------- ---------- ----------
EXPENSES:
Mortality and expense risk charges........................ $ 107,483 $ 87,353 $ 18,661 $ 17,108
Minimum death benefit guarantee charges................... 1,945 1,567 508 239
Administrative charges.................................... 36,995 30,058 6,525 5,846
----------- ----------- ---------- ----------
Total expenses............................................ $ 146,423 $ 118,978 $ 25,694 $ 23,193
----------- ----------- ---------- ----------
Net investment income (loss).......................... $4,440,186 $ 2,051,935 $ 346,814 $ 507,077
----------- ----------- ---------- ----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment transactions:
Proceeds from sales..................................... $4,042,546 $ 2,644,512 $1,087,245 $1,005,213
Cost of investments sold................................ 3,068,219 2,028,514 1,070,226 1,046,855
----------- ----------- ---------- ----------
Net realized gains (losses)........................... $ 974,327 $ 615,998 $ 17,019 $ (41,642)
----------- ----------- ---------- ----------
Net unrealized appreciation (depreciation) on investments:
End of period........................................... $5,147,847 $ 2,238,286 $ (256,727) $ (697,952)
Beginning of period..................................... 8,682,122 4,852,493 (127,284) (212,631)
----------- ----------- ---------- ----------
Change in unrealized appreciation (depreciation)...... $(3,534,275) $(2,614,207) $ (129,443) $ (485,321)
----------- ----------- ---------- ----------
Realized and unrealized gains (losses).................. $(2,559,948) $(1,998,209) $ (112,424) $ (526,963)
----------- ----------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS......... $1,880,238 $ 53,726 $ 234,390 $ (19,886)
=========== =========== ========== ==========
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENT OF OPERATIONS -- continued
Six Months Ended June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
MSS MMS TRS GGS ZCS-2000
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME:
Dividend income and capital gain distributions
received.......................................... $1,690,493 $ 153,225 $ 656,578 $ 31,485 $ 201,885
----------- ---------- ---------- -------- ---------
EXPENSES:
Mortality and expense risk charges................. $ 26,677 $ 16,663 $ 19,910 $ 2,283 $ 8,414
Minimum death benefit guarantee charges............ 1,049 1,463 591 94 323
Administrative charges............................. 9.522 6,433 6,991 817 2,999
----------- ---------- ---------- -------- ---------
Total expenses..................................... $ 37,248 $ 24,559 $ 27,492 $ 3,194 $ 11,736
----------- ---------- ---------- -------- ---------
Net investment income (loss)................... $1,653,245 $ 128,666 $ 629,086 $ 28,291 $ 190,149
----------- ---------- ---------- -------- ---------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment transactions:
Proceeds from sales.............................. $2,234,944 $4,593,955 $1,638,499 $ 15,603 $ 467,603
Cost of investments sold......................... 1,304,742 4,593,955 1,832,113 17,228 467,545
----------- ---------- ---------- -------- ---------
Net realized gains (losses).................... $ 930,202 $ -- $ (193,614) $ (1,625) $ 58
----------- ---------- ---------- -------- ---------
Net unrealized appreciation (depreciation) on
investments:
End of period.................................... $ (124,213) $ -- $ (938,421) $(71,648) $(158,156)
Beginning of period.............................. 3,433,514 -- (639,332) (35,914) (31,740)
----------- ---------- ---------- -------- ---------
Change in unrealized appreciation
(depreciation)............................... $(3,557,727) $ -- $ (299,089) $(35,734) $(126,416)
----------- ---------- ---------- -------- ---------
Realized and unrealized gains (losses)........... $(2,627,525) $ -- $ (492,703) $(37,359) $(126,358)
----------- ---------- ---------- -------- ---------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS....................................... $ 974,280 $ 128,666 $ 136,383 $ (9,068) $ 63,791
=========== ========== ========== ======== =========
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months Ended June 30, 2000 and the Year Ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
CAS Sub-Account MIT Sub-Account GSS Sub-Account
----------------------------- ----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 4,440,186 $ 3,035,018 $ 2,051,935 $ 2,139,390 $ 346,814 $ 316,600
Net realized gains
(losses).................. 974,327 991,291 615,998 881,684 17,019 84,102
Net unrealized gains
(losses).................. (3,534,275) 4,610,767 (2,614,207) (1,194,339) (129,443) (612,062)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in
net assets from
operations............ $ 1,880,238 $ 8,637,076 $ 53,726 $ 1,826,735 $ 234,390 $ (211,360)
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Transfers between
Sub-Accounts.............. $ 380,643 $ 399,891 $ (776,266) $ 245,979 $ (442,279) $ (441,064)
Transfers to loan value
account................... (132,140) (618,675) (169,189) (585,188) (273,029) (51,448)
Contract surrenders......... (1,158,570) (1,046,372) (793,239) (795,332) (192,757) (633,755)
Charges for life insurance
protection................ (75,466) (140,181) (84,815) (160,115) (32,517) (75,173)
Death benefits.............. (168,024) (680,194) (326,650) (503,343) (64,313) (26,988)
----------- ----------- ----------- ----------- ----------- -----------
(Decrease) in net assets
from contract owner
transactions............ $(1,153,557) $(2,085,531) $(2,150,159) $(1,797,999) $(1,004,895) $(1,228,428)
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in
net assets............ $ 726,781 $ 6,551,545 $(2,096,433) $ 28,736 $ (770,505) $(1,439,788)
NET ASSETS:
Beginning of Period......... 35,863,216 29,311,671 30,868,432 30,839,696 6,643,509 8,083,297
----------- ----------- ----------- ----------- ----------- -----------
End of Period............... $36,589,897 $35,863,216 $28,771,999 $30,868,432 $ 5,873,004 $ 6,643,509
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Year Ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
HYS Sub-Account MSS Sub-Account MMS Sub-Account
----------------------------- ----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................... $ 507,077 $ 460,182 $1,653,245 $ (39,373) $ 128,666 $ 234,040
Net realized gains
(losses).................. (41,642) 22,599 930,202 156,562 -- --
Net unrealized gains
(losses).................. (485,321) (117,710) (3,557,727) 3,313,207 -- (81)
---------- ---------- ---------- ---------- ----------- ----------
Increase (Decrease) in
net assets from
operations............ $ (19,886) $ 365,071 $ (974,280) $3,430,396 $ 128,666 $ 233,959
---------- ---------- ---------- ---------- ----------- ----------
CONTRACT OWNER TRANSACTIONS:
Transfers between
Sub-Accounts.............. $ (237,848) $ (35,370) $1,564,137 $ 717,312 $ 35,824 $ 341,633
Transfers to loan value
account................... (47,933) (49,490) 15,678 (92,409) (228,885) (146,857)
Contract surrenders......... (183,075) (137,137) (234,481) (36,423) (713,312) (983,718)
Charges for life insurance
protection................ (20,554) (42,205) (23,159) (31,563) (64,039) (118,797)
Death benefits.............. (62,976) (216,718) -- (14,695) (36,415) (32,357)
---------- ---------- ---------- ---------- ----------- ----------
Increase (Decrease) in
net assets from
contract owner
transactions.......... $ (552,386) $ (480,920) $1,322,175 $ 542,222 $(1,006,827) $ (940,096)
---------- ---------- ---------- ---------- ----------- ----------
Increase (Decrease) in
net assets............ $ (572,272) $ (115,849) $ 347,895 $3,972,618 $ (878,161) $ (706,137)
NET ASSETS:
Beginning of period......... 5,984,700 6,100,549 7,977,778 4,005,160 6,283,258 6,989,395
---------- ---------- ---------- ---------- ----------- ----------
End of period............... $5,412,428 $5,984,700 $8,325,673 $7,977,778 $ 5,405,097 $6,283,258
========== ========== ========== ========== =========== ==========
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
STATEMENTS OF CHANGES IN NET ASSETS -- continued
For the Six Months Ended June 30, 2000 and the Year Ended December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
TRS Sub-Account GGS Sub-Account
----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)............................. $ 629,086 $ 1,169,640 $ 28,291 $ 89,962
Net realized gains (losses).............................. (193,614) 50,773 (1,625) 2,767
Net unrealized gains (losses)............................ (299,089) (1,057,820) (35,734) (141,705)
----------- ----------- ---------- ---------
Increase (decrease) in net assets from operations.... $ 136,383 $ 162,593 $ (9,068) $ (48,976)
----------- ----------- ---------- ---------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts........................... $ (530,949) $ (711,472) $ (973) $(123,567)
Transfers from loan value account........................ (8,116) (161,443) -- 103
Contract surrenders...................................... (653,741) (232,433) -- --
Charges for life insurance protection.................... (25,928) (61,769) (4,940) (9,547)
Death benefits........................................... (20,440) (206,887) -- --
----------- ----------- ---------- ---------
Increase (Decrease) in net assets from contract owner
transactions......................................... $(1,239,174) $(1,374,004) $ (5,913) $(133,011)
----------- ----------- ---------- ---------
Increase (Decrease) in net assets.................... $(1,102,791) $(1,211,411) $ (14,981) $(181,987)
NET ASSETS:
Beginning of period...................................... 7,468,478 8,679,889 783,711 965,698
----------- ----------- ---------- ---------
End of period............................................ $ 6,365,687 $ 7,468,478 $ 768,730 $ 783,711
=========== =========== ========== =========
</TABLE>
<TABLE>
<CAPTION>
ZCS-2000
-----------------------------
Six Months Year Ended
Ended June 30, December 31,
2000 1999
-------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 190,149 $ 180,150
Net realized gains (losses)............................... 58 27,919
Net unrealized gains (losses)............................. (126,416) (144,722)
---------- ----------
Increase (Decrease) in net assets from operations......... $ 63,791 $ 63,347
---------- ----------
CONTRACT OWNER TRANSACTIONS:
Transfers between Sub-Accounts............................ $ (249,980) $ (393,342)
Transfers to loan value account........................... (16,187) 58,677
Contract surrenders....................................... (116,141) (103,066)
Charges for life insurance protection..................... (4,020) (12,382)
Death benefits............................................ -- (29,993)
---------- ----------
Decrease in net assets from contract owner
transactions........................................... $ (386,328) $ (480,106)
---------- ----------
Increase (Decrease) in net assets..................... $ (322,537) $ (416,759)
NET ASSETS:
Beginning of period....................................... 3,056,720 3,473,479
---------- ----------
End of period............................................. $2,734,183 $3,056,720
========== ==========
</TABLE>
See notes to financial statements
6
<PAGE>
t
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
Sun Life (U.S.) Variable Account E (the "Variable Account"), a separate account
of Sun Life Assurance Company of Canada (U.S.) (the "Sponsor") was established
on December 3, 1985 as a funding vehicle for single premium 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 specific series of MFS/Sun Life Series
Trust (the "Series Trust") an open-end management investment company registered
under the Investment Company Act of 1940. Massachusetts Financial Services
Company, an affiliate of the Sponsor, is the investment adviser to the Series
Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires 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 the Series Trust are recorded at their net asset value.
Realized gains and losses on sales of shares of the Series Trust are determined
on the identified cost basis. Dividend income and capital gain distributions
received by the Sub-Accounts are reinvested in additional Fund 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.
(3) CONTRACT CHARGES
Certain charges based on the value of the Variable Account are paid to the
Sponsor from the Variable Account at the end of each valuation period as
follows: (i) an administrative charge of 0.35% for the first ten contract years
and 0.20% thereafter; (ii) a mortality and expense risk charge of 0.60%; and
(iii) a minimum
7
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(3) CONTRACT CHARGES -- continued
death benefit guarantee charge of 0.25% for the first ten contract years with no
deduction thereafter. Accounts are transferred from Level 1 to Level 2 in the
month following the tenth contract anniversary.
On each Monthly anniversary Date after the Contract Date, a charge for providing
life insurance protection is imposed by the Sponsor against the contract's
account value. This charge will be based upon the Sponsor's expectations of
future mortality experience, but it will never be higher than the amount based
upon the 1980 CSO Mortality Table C, and in most cases it will be lower.
The Sponsor does not deduct a sales charge from the premium payment. However, a
withdrawal charge (contingent deferred sales charge) may be deducted to cover
certain expenses relating to the sale of the contract. In no event shall the
aggregate withdrawal charges exceed 8% of the single premium payment made under
the contract.
8
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
CAS - Level 1 CAS - Level 2 MIT - Level 1 MIT - Level 2
Sub-Account Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- ----------------------- -----------------------
Six Six Six Six
Months Months Months Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
-------- ------------ -------- ------------ -------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of
period............. 29,598 46,335 436,402 454,818 31,021 36,127 523,139 550,067
Units transferred
between Sub-
Accounts......... (22,540) (14,243) 25,829 19,597 (16,641) (3,878) 1,949 10,362
Units transferred
(to) from loan
value account.... (370) (252) (1,335) (9,450) (14) (1,044) (3,006) (9,821)
Units
surrendered........ -- (1,774) (15,355) (15,319) -- -- (14,444) (15,011)
Units cancelled in
payment of
charges for life
insurance
protection....... (40) (183) (960) (2,106) (65) (184) (1,460) (2,986)
Units cancelled in
payment of death
benefits......... -- (285) (2,157) (11,138) -- -- (5,639) (9,472)
------- ------- ------- ------- ------- ------- ------- -------
Units Outstanding
End of period...... 6,648 29,598 442,424 436,402 14,301 31,021 500,539 523,139
======= ======= ======= ======= ======= ======= ======= =======
<CAPTION>
GSS - Level 1
Sub-Account
-----------------------
Six
Months
Ended Year Ended
June 30, December 31,
2000 1999
-------- ------------
<S> <C> <C>
Units Outstanding
Beginning of
period............. 35,165 38,842
Units transferred
between Sub-
Accounts......... (27,833) (2,877)
Units transferred
(to) from loan
value account.... -- (367)
Units
surrendered........ -- --
Units cancelled in
payment of
charges for life
insurance
protection....... (95) (433)
Units cancelled in
payment of death
benefits......... -- --
------- -------
Units Outstanding
End of period...... 7,237 35,165
======= =======
</TABLE>
9
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS -- continued
<TABLE>
<CAPTION>
GSS - Level 2 HYS - Level 1 HYS - Level 2 MSS - Level 1
Sub-Account Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- ----------------------- -----------------------
Six Six Six Six
Months Months Months Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
-------- ------------ -------- ------------ -------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of
period............. 273,830 326,819 12,479 17,206 212,563 225,883 8,837 11,622
Units transferred
between Sub-
Accounts......... 7,334 (17,614) (10,996) (4,676) 2,112 3,515 (3,363) (2,349)
Units transferred
(to) from loan
value account.... (12,434) (1,965) (3) (5) (1,808) (1,863) -- (264)
Units
surrendered........ (8,757) (29,112) -- -- (6,936) (5,163) -- --
Units cancelled in
payment of
charges for life
insurance
protection....... (1,383) (3,037) (15) (46) (741) (1,566) (28) (172)
Units cancelled in
payment of death
benefits......... (2,903) (1,261) -- -- (2,369) (8,243) -- --
------- ------- ------- ------- ------- ------- ------- -------
Units Outstanding
End of period...... 255,687 273,830 1,465 12,479 202,821 212,563 5,446 8,837
======= ======= ======= ======= ======= ======= ======= =======
<CAPTION>
MSS - Level 2
Sub-Account
-----------------------
Six
Months
Ended Year Ended
June 30, December 31,
2000 1999
-------- ------------
<S> <C> <C>
Units Outstanding
Beginning of
period............. 83,771 73,971
Units transferred
between Sub-
Accounts......... 17,990 12,387
Units transferred
(to) from loan
value account.... 241 (1,212)
Units
surrendered........ (2,831) (686)
Units cancelled in
payment of
charges for life
insurance
protection....... (251) (403)
Units cancelled in
payment of death
benefits......... -- (286)
------- -------
Units Outstanding
End of period...... 98,920 83,771
======= =======
</TABLE>
10
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS -- continued
<TABLE>
<CAPTION>
MMS - Level 1 MMS - Level 2 TRS - Level 1 TRS - Level 2
Sub-Account Sub-Account Sub-Account Sub-Account
----------------------- ----------------------- ----------------------- -----------------------
Six Six Six Six
Months Months Months Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999 2000 1999
-------- ------------ -------- ------------ -------- ------------ -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of
period.............. 89,975 82,874 276,650 339,983 24,261 38,827 201,163 228,221
Units transferred
between Sub-
Accounts.......... (24,149) 12,126 25,357 8,188 (8,409) (14,161) (8,184) (7,482)
Units transferred
(to) from loan
value account..... (631) (1,196) (12,548) (7,547) (18) (182) (253) (4,664)
Units surrendered... (19,539) (181) (21,755) (58,613) (7,557) -- (12,021) (7,022)
Units cancelled in
payment of charges
for life insurance
protection........ (1,443) (3,032) (2,004) (4,040) (63) (223) (713) (1,643)
Units cancelled in
payment of death
benefits.......... -- (616) (2,085) (1,321) -- -- (608) (6,247)
------- ------- ------- ------- ------- ------- ------- -------
Units outstanding
End of period....... 44,213 89,975 263,615 276,650 8,214 24,261 179,384 201,163
======= ======= ======= ======= ======= ======= ======= =======
<CAPTION>
GGS - Level 1
Sub-Account
-----------------------
Six
Months
Ended Year Ended
June 30, December 31,
2000 1999
-------- ------------
<S> <C> <C>
Units Outstanding
Beginning of
period.............. 4,189 4,750
Units transferred
between Sub-
Accounts.......... (673) (457)
Units transferred
(to) from loan
value account..... -- --
Units surrendered... -- --
Units cancelled in
payment of charges
for life insurance
protection........ (55) (104)
Units cancelled in
payment of death
benefits.......... -- --
------- -------
Units outstanding
End of period....... 3,461 4,189
======= =======
</TABLE>
11
<PAGE>
SUN LIFE (U.S.) VARIABLE ACCOUNT E
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- continued
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS -- continued
<TABLE>
<CAPTION>
GGS - Level 2 ZCS-2000 - Level 1 ZCS-2000 - Level 2
Sub-Account Sub-Account Sub-Account
----------------------------- ----------------------------- -----------------------------
Six Months Year Ended Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31, Ended June 30, December 31,
2000 1999 2000 1999 2000 1999
-------------- ------------ -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding
Beginning of period............. 35,924 41,683 14,117 19,758 125,098 141,678
Units transferred between
Sub-Accounts.................. 614 (5,391) (7,140) (5,610) (4,253) (12,630)
Units transferred (to) from loan
value account................. -- 7 -- -- (814) 2,720
Units surrendered............... -- -- -- -- (5,163) (4,757)
Units cancelled in payment of
charges for life insurance
protection.................... (204) (375) (7) (31) (172) (541)
Units cancelled in payment of
death benefits................ -- -- -- -- -- (1,372)
----------- --------- ----------- --------- ----------- ---------
Units outstanding
End of period................... 36,334 35,924 6,970 14,117 114,696 125,098
=========== ========= =========== ========= =========== =========
</TABLE>
12
<PAGE>
COMPASS--LIFE
SUN LIFE OF CANADA (U.S.) VARIABLE ACCOUNT E
DIRECTORS AND OFFICERS OF
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, Vice Chairman and Director
JAMES A. McNULTY, III, President and Director
RICHARD B. BAILEY, Director
GREGORY W. GEE, Director
DAVID D. HORN, Director
ANGUS A. MacNAUGHTON, Director
S. CAESAR RABOY, Director
WILLIAM W. STINSON, Director
PETER F. DEMUTH, Vice President, Chief
Counsel and Assistant Secretary
ELLEN B. KING, Counsel and Secretary
ROBERT P. VROLYK, Vice President and Actuary
DAVEY S. SCOON, Vice President, Finance and
Treasurer
RONALD J. FERNANDES, Vice President, Retirement
Products and Services
JAMES M.A. ANDERSON, Vice President, Investments
ROBIN L. CAMARA, Vice President, Human
Resources and Administrative Services
JAMES R. SMITH, Vice President and
Chief Information Officer
MARK W. DETORA, Vice President,
Individual Insurance
SUN LIFE ASSURANCE COMPANY
OF CANADA (U.S.)
Variable Life Service Unit, SC 1278
One Sun Life Executive Park
Wellesley Hills, MA 02481
Call Toll Free 1-800-445-4070
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, Massachusetts 02110-2875
VARIABLE PRODUCTS ARE ISSUED BY
SUN LIFE ASSURANCE COMPANY OF CANADA (U.S.)
AND DISTRIBUTED THROUGH SUN LIFE OF CANADA
(U.S.) DISTRIBUTORS INC.,
MEMBERS OF THE SUN LIFE
FINANCIAL GROUP OF COMPANIES.
CO2-2/99 6M
LOGO
SINGLE PREMIUM VARIABLE
LIFE INSURANCE
-------------------------------------------------
SEMI-ANNUAL REPORT, JUNE 30, 2000
LOGO
