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Previous: TRANSMONTAIGNE OIL CO, S-3, 1997-03-20 |
Next: SUN LIFE N Y VARIABLE ACCOUNT B, N-30D, 1997-03-20 |
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
ANNUAL REPORT FOR THE
YEAR ENDED DECEMBER 31, 1996
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners participating in Sun Life (N.Y.) Variable Account A and
the Board of Directors of Sun Life Insurance and Annuity Company of New York:
We have audited the accompanying statement of condition of Sun Life (N.Y.)
Variable Account A (the "Variable Account") as of December 31, 1996, the related
statement of operations for the year then ended, and the statements of changes
in net assets for the years ended December 31, 1996 and 1995.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 as of December 31, 1996 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 Variable Account as of December 31,
1996, the results of its operations and the changes in its net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
/s/ Deloitte & Touche LLP
February 7, 1997
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF CONDITION
DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES COST VALUE
------ ---- -----
<S> <C> <C> <C>
ASSETS:
Investments in mutual funds:
Massachusetts Investors Trust ("MIT") Class A 72,764 $ 909,822 $1,052,443
Massachusetts Investors Growth Stock Fund ("MIG") Class A 47,992 510,992 478,757
MFS Bond Fund ("MFB") Class A 78,910 1,069,832 1,043,817
MFS Emerging Growth Fund ("MEG") Class A 32,268 680,846 977,525
MFS Government Money Market Fund ("MCG") 92,656 92,656 92,656
MFS Growth Opportunities Fund ("MGO") Class A 17,027 197,848 220,773
MFS High Income Fund ("MFH") Class A 78,046 403,453 416,932
MFS Money Market Fund ("MCM") 342,639 342,639 342,639
MFS Research Fund ("MFR") Class A 14,563 217,433 269,753
MFS Total Return Fund ("MTR") Class A 171,765 2,211,256 2,540,893
MFS World Governments Fund ("MWG") Class A 41,686 502,125 470,936
---------- ----------
NET ASSETS $7,138,902 $7,907,124
---------- ----------
---------- ----------
<CAPTION>
UNITS UNIT VALUE VALUE
------- ---------- ----------
<S> <C> <C> <C>
NET ASSETS APPLICABLE TO OWNERS OF DEFERRED
VARIABLE ANNUITY CONTRACTS:
MIT 24,506 $ 42.9716 $1,052,443
MIG 13,106 36.6834 478,757
MFB 43,293 23.8984 1,043,817
MEG 19,504 50.3336 977,525
MCG 6,013 15.4092 92,656
MGO 6,814 32.2614 220,773
MFH 16,765 24.8670 416,932
MCM 21,921 15.6386 342,639
MFR 7,287 37.0227 269,753
MTR 72,563 35.0672 2,540,893
MWG 15,694 29.7910 470,936
----------
NET ASSETS $7,907,124
----------
----------
</TABLE>
See notes to financial statements.
-2-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
MIT MIG MFB MEG MCG MGO
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 $106,399 $115,059 $71,595 $ 11,935 $4,018 $24,142
Mortality and expense risk charges 12,750 5,800 12,899 12,742 1,156 2,888
-------- -------- ------- -------- ------ -------
Net investment income 93,649 109,259 58,696 (807) 2,862 21,254
-------- -------- ------- -------- ------ -------
Realized and Unrealized Gains
(Losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 102,597 52,651 34,732 110,890 1,001 54,744
Cost of investments sold 96,177 51,320 35,278 61,156 1,001 41,993
-------- -------- ------- -------- ------ -------
Net realized gains (losses) 6,420 1,331 (546) 49,734 - 12,751
-------- -------- ------- -------- ------ -------
Net unrealized appreciation
(depreciation) on investments:
End of year 142,622 (32,234) (26,014) 296,679 - 22,925
Beginning of year 26,367 (8,550) 5,865 221,031 - 12,547
-------- -------- ------- -------- ------ -------
Change in unrealized
appreciation (depreciation) 116,255 (23,684) (31,879) 75,648 - 10,378
-------- -------- ------- -------- ------ -------
Realized and unrealized gains 122,675 (22,353) (32,425) 125,382 - 23,129
-------- -------- ------- -------- ------ -------
Increase in Net Assets from
Operations $216,324 $ 86,906 $26,271 $124,575 $2,862 $44,383
-------- -------- ------- -------- ------ -------
-------- -------- ------- -------- ------ -------
<CAPTION>
MFH MCM MFR MTR MWG
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT TOTAL
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Income and Expenses:
Dividend income and capital gain
distributions received $ 36,114 $ 15,793 $ 13,541 $276,874 $ 12,924 $688,394
Mortality and expense risk charges 5,344 4,436 2,790 32,457 6,428 99,690
------- -------- -------- -------- -------- --------
Net investment income 30,770 11,357 10,751 244,417 6,496 588,704
------- -------- -------- -------- -------- --------
Realized and Unrealized Gains
(Losses):
Realized gains (losses) on
investment transactions:
Proceeds from sales 39,287 149,609 29,004 275,878 79,123 929,516
Cost of investments sold 41,184 149,609 18,322 215,673 86,590 798,303
------- -------- -------- -------- -------- --------
Net realized gains (losses) (1,897) - 10,682 60,205 (7,467) 131,213
------- -------- -------- -------- -------- --------
Net unrealized appreciation
(depreciation) on investments:
End of year 13,479 - 52,320 329,636 (31,188) 768,225
Beginning of year (1,159) - 29,188 324,680 (51,362) 558,607
------- -------- -------- -------- -------- --------
Change in unrealized
appreciation (depreciation) 14,638 - 23,132 4,956 20,174 209,618
------- -------- -------- -------- -------- --------
Realized and unrealized gains 12,741 - 33,814 65,161 12,707 340,831
------- -------- -------- -------- -------- --------
Increase in Net Assets from
Operations $43,511 $ 11,357 $ 44,565 $309,578 $ 19,203 $929,535
------- -------- -------- -------- -------- --------
------- -------- -------- -------- -------- --------
</TABLE>
See notes to financial statements.
-3-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
MIT MIG MFB
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 93,649 $ 71,347 $109,259 $ 46,301 $ 58,696 $ 59,981
Net realized gains (losses) 6,420 (13,965) 1,331 (40,458) (546) (2,927)
Net unrealized gains (losses) 116,255 181,190 (23,684) 75,030 (31,879) 120,382
---------- -------- -------- --------- ---------- ----------
Increase (decrease) in net assets
from operations 216,324 238,572 86,906 80,873 26,271 177,436
---------- -------- -------- --------- ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 59,276 52,601 22,225 21,352 30,397 30,210
Net transfers between Sub-Accounts and
Fixed Account (8,441) 28,730 18,419 (151,403) (4,412) 17,545
Withdrawals, surrenders and account fees (85,209) (84,448) (35,098) (17,516) (21,523) (150,617)
---------- -------- -------- --------- ---------- ----------
Net contract owner activity (34,374) (3,117) 5,546 (147,567) 4,462 (102,862)
---------- -------- -------- --------- ---------- ----------
Increase (decrease) in net assets 181,950 235,455 92,452 (66,694) 30,733 74,574
Net Assets:
Beginning of year 870,493 635,038 386,305 452,999 1,013,084 938,510
---------- -------- -------- --------- ---------- ----------
End of year $1,052,443 $870,493 $478,757 $ 386,305 $1,043,817 $1,013,084
---------- -------- -------- --------- ---------- ----------
---------- -------- -------- --------- ---------- ----------
<CAPTION>
MEG MCG MGO
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ (807) $ (9,410) $ 2,862 $ 3,049 $ 21,254 $ 23,234
Net realized gains (losses) 49,734 83,319 - - 12,751 (826)
Net unrealized gains (losses) 75,648 164,765 - - 10,378 22,909
---------- -------- -------- --------- ---------- ----------
Increase (decrease) in net assets
from operations 124,575 238,674 2,862 3,049 44,383 45,317
---------- -------- -------- --------- ---------- ----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 26,289 44,721 4,996 5,564 4,745 4,849
Net transfers between Sub-Accounts and
Fixed Account 28,955 280,677 - - 21,023 31,252
Withdrawals, surrenders and account fees (75,899) (274,475) (107) (828) (51,946) (9,848)
---------- -------- -------- --------- ---------- ----------
Net contract owner activity (20,655) 50,923 4,889 4,736 (26,178) 26,253
---------- -------- -------- --------- ---------- ----------
Increase (decrease) in net assets 103,920 289,597 7,751 7,785 18,205 71,570
Net Assets:
Beginning of year 873,605 584,008 84,905 77,120 202,568 130,998
---------- -------- -------- --------- ---------- ----------
End of year $ 977,525 $873,605 $ 92,656 $ 84,905 $ 220,773 $ 202,568
---------- -------- -------- --------- ---------- ----------
---------- -------- -------- --------- ---------- ----------
</TABLE>
See notes to financial statements.
(Continued)
-4-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1996 AND 1995
<TABLE>
<CAPTION>
MFH MCM MFR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 30,770 $ 31,811 $ 11,357 $ 19,044 $ 10,751 $ 9,104
Net realized gains (losses) (1,897) (8,294) - - 10,682 7,915
Net unrealized gains (losses) 14,638 40,064 - - 23,132 33,384
---------- ---------- --------- --------- ---------- -----------
Increase (decrease) in net assets
from operations 43,511 63,581 11,357 19,044 44,565 50,403
---------- ---------- --------- --------- ---------- -----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 2,296 4,191 17,561 27,407 7,123 11,920
Net transfers between Sub-Accounts and
Fixed Account (1,081) (12,242) (69,648) (135,854) 61,532 4,295
Withdrawals, surrenders and account fees (32,317) (90,263) (51,178) (30,982) (25,750) (14,408)
---------- ---------- --------- --------- ---------- -----------
Net contract owner activity (31,102) (98,314) (103,265) (139,429) 42,905 1,807
---------- ---------- --------- --------- ---------- -----------
Increase (decrease) in net assets 12,409 (34,733) (91,908) (120,385) 87,470 52,210
Net Assets:
Beginning of year 404,523 439,256 434,547 554,932 182,283 130,073
---------- ---------- --------- --------- ---------- -----------
End of year $ 416,932 $ 404,523 $ 342,639 $ 434,547 $ 269,753 $ 182,283
---------- ---------- --------- --------- ---------- -----------
---------- ---------- --------- --------- ---------- -----------
<CAPTION>
MTR MWG
SUB-ACCOUNT SUB-ACCOUNT TOTAL
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net investment income (expense) $ 244,417 $ 183,074 $ 6,496 $ 57,229 $ 588,704 $ 494,764
Net realized gains (losses) 60,205 102,494 (7,467) (13,204) 131,213 114,054
Net unrealized gains (losses) 4,956 239,080 20,174 33,008 209,618 909,812
---------- ---------- --------- --------- ---------- -----------
Increase (decrease) in net assets
from operations 309,578 524,648 19,203 77,033 929,535 1,518,630
---------- ---------- --------- --------- ---------- -----------
Contract Owner Transactions:
Accumulation Activity:
Purchase payments received 61,458 59,720 9,585 11,101 245,951 273,636
Net transfers between Sub-Accounts and
Fixed Account (42,651) (22,323) (33,415) (41,363) (29,719) (686)
Withdrawals, surrenders and account fees (200,379) (503,774) (38,748) (179,643) (618,154) (1,356,802)
---------- ---------- --------- --------- ---------- -----------
Net contract owner activity (181,572) (466,377) (62,578) (209,905) (401,922) (1,083,852)
---------- ---------- --------- --------- ---------- -----------
Increase (decrease) in net assets 128,006 58,271 (43,375) (132,872) 527,613 434,778
Net Assets:
Beginning of year 2,412,887 2,354,616 514,311 647,183 7,379,511 6,944,733
---------- ---------- --------- --------- ---------- -----------
End of year $2,540,893 $2,412,887 $ 470,936 $ 514,311 $7,907,124 $ 7,379,511
---------- ---------- --------- --------- ---------- -----------
---------- ---------- --------- --------- ---------- -----------
</TABLE>
See notes to financial statements.
(Concluded)
-5-
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life (N.Y.) Variable Account A (the "Variable Account"), a separate
account of Sun Life Insurance and Annuity Company of New York (the
"Sponsor"), a wholly owned subsidiary of Sun Life Assurance Company of
Canada (U.S.), was established on December 3, 1984 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 assets of the Variable Account are divided into Sub-Accounts.Each Sub-
Account is invested in shares of a specific mutual fund selected by
contract owners from among available mutual funds (the "Funds") advised by
Massachusetts Financial Services Company ("MFS"), a subsidiary of Sun Life
Assurance Company of Canada (U.S.).
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with generally
accepted accounting principles 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 the Funds are recorded at their net asset value.Realized
gains and losses on sales of shares of the Funds 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 subject to tax.
-6-
<PAGE>
(3) CONTRACT CHARGES
A mortality and expense risk charge based on the value of the Variable
Account is deducted from the Variable Account at the end of each valuation
period for the mortality and expense risks assumed by the Sponsor.The
deduction is at an effective annual rate of 1.3%.
Each year on the contract anniversary, a contract maintenance charge
("Account Fee") of $30 is deducted from each contract's accumulation
account to cover administrative expenses relating to the contract.After the
annuity commencement date, the Account Fee is deducted pro rata from each
annuity payment made during the year.
The Sponsor does not deduct a sales charge from purchase payments.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 5% of the purchase payments
made under the contract.
-7-
<PAGE>
(4) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
MIT MIG MFB
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 25,203 25,279 12,814 19,021 43,111 47,921
Units purchased 1,571 1,797 664 789 1,324 1,429
Units transferred between
Sub-Accounts and Fixed Account (220) 953 612 (6,333) (189) 870
Units withdrawn and surrendered (2,048) (2,826) (984) (663) (953) (7,109)
------ ------ ------ ------ ------ ------
Units outstanding, end of year 24,506 25,203 13,106 12,814 43,293 43,111
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
<CAPTION>
MEG MCG MGO
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 19,750 18,403 5,691 5,366 7,521 6,457
Units purchased 538 1,185 329 381 162 204
Units transferred between
Sub-Accounts and Fixed Account 606 8,224 - - 828 1,283
Units withdrawn and surrendered (1,390) (8,062) (7) (56) (1,697) (423)
------ ------ ------ ------ ------- ------
Units outstanding, end of year 19,504 19,750 6,013 5,691 6,814 7,521
------ ------ ------ ------ ------- ------
------ ------ ------ ------ ------- ------
<CAPTION>
MFH MCM MFR
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31,
------------ ------------ ------------
1996 1995 1996 1995 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 18,087 22,721 28,742 38,136 6,052 5,905
Units purchased 99 200 1,140 1,843 215 455
Units transferred between
Sub-Accounts and Fixed Account (46) (603) (4,598) (9,159) 1,744 229
Units withdrawn and surrendered (1,375) (4,231) (3,363) (2,078) (724) (537)
------ ------ ------ ------ ------ ------
Units outstanding, end of year 16,765 18,087 21,921 28,742 7,287 6,052
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
<CAPTION>
MTR MWG
SUB-ACCOUNT SUB-ACCOUNT
----------- -----------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------ ------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Units outstanding, beginning of year 77,949 95,322 17,846 25,643
Units purchased 1,917 2,172 334 414
Units transferred between
Sub-Accounts and Fixed Account (1,286) (767) (1,137) (1,510)
Units withdrawn and surrendered (6,017) (18,778) (1,349) (6,701)
------ ------- ------ ------
Units outstanding, end of year 72,563 77,949 15,694 17,846
------ ------- ------ ------
------ ------- ------ ------
</TABLE>
* * * * * *
-8-
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