<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY
OF NEW YORK
80 Broad Street
New York, NY 10004
DIRECTORS AND OFFICERS
JOHN D. McNEIL, Chairman and Director
JOHN R. GARDNER, President and Director
DAVID D. HORN, Senior Vice President
and Director
RICHARD B. BAILEY, Director
A. KEITH BRODKIN, Director
M. COLYER CRUM, Director
JOHN G. IRELAND, Director
EDWARD M. LAMONT, Director
JOHN S. LANE, Director
ANGUS A. MacNAUGHTON, Director
FIORAVANTE G. PERROTTA, Director
RALPH F. PETERS, Director
PAMELA T. TIMMINS, Director
MICHAEL A. COHEN, Vice President
and Regional Manager
BONNIE S. ANGUS, Secretary
L. BROCK THOMSON, Vice President and
Treasurer
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
500 Boylston Street, Boston, Massachusetts 02116
LEGAL COUNSEL
Covington & Burling
1201 Pennsylvania Avenue, N.W.
P.O. Box 7566, Washington, D.C. 20044
AUDITORS
Deloitte & Touche LLP
125 Summer Street, Boston, Massachusetts 02110
This report is prepared for the general information
of contract owners. It is authorized for distribution
to prospective purchasers only if preceded or
accompanied by an effective prospectus.
CONY-3-9/96 8M
SUN LIFE (N.Y.) VARIABLE
ACCOUNT B
[COMPASS 2 & 3 LOGO]
PROFESSIONALLY MANAGED COMBINATION
FIXED/VARIABLE ANNUITIES
FOR PERSONAL INVESTMENTS AND
QUALIFIED RETIREMENT PLANS
-------------------------------------------
SEMI-ANNUAL REPORT, JUNE 30, 1996
[LOGO]
ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENT OF CONDITION-- June 30, 1996
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
---------- ------------ ------------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS")...... 1,766,321 $ 48,102,822 $ 58,611,701
Government Securities Series ("GSS")..... 2,383,757 29,976,167 29,443,990
High Yield Series ("HYS")................ 1,580,933 13,496,817 13,375,020
Managed Sectors Series ("MSS")........... 453,117 10,162,337 10,900,030
Money Market Series ("MMS").............. 13,103,872 13,103,872 13,103,872
Total Return Series ("TRS").............. 2,239,538 34,469,599 39,985,739
World Governments Series ("WGS")......... 700,515 8,234,993 7,496,201
------------ ------------
$157,546,607 $172,916,553
------------
------------
LIABILTY:
Payable to sponsor................................................... 43,445
------------
Net Assets..................................................... $172,873,108
------------
------------
</TABLE>
<TABLE>
<CAPTION>
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
NET ASSETS: ----------------------------------- Variable
COMPASS 2 CONTRACTS: Units Unit Value Value Annuities Total
--------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
CAS................................................ 1,221,943 $ 45.3823 $ 55,450,712 $160,502 $ 55,611,214
GSS................................................ 1,321,544 21.7455 28,734,882 122,276 28,857,158
HYS................................................ 525,839 24.0111 12,628,661 42,563 12,671,224
MSS................................................ 324,368 30.9381 10,040,413 -- 10,040,413
MMS................................................ 800,972 15.7278 12,592,912 11,759 12,604,671
TRS................................................ 1,621,905 22.4038 36,359,339 522,685 36,882,024
WGS................................................ 390,983 17.7143 6,930,717 -- 6,930,717
------------ ----------- ------------
$162,737,636 $859,785 $163,597,421
------------ ----------- ------------
<CAPTION>
COMPASS 3 CONTRACTS:
<S> <C> <C> <C> <C> <C>
CAS................................................ 205,770 $ 14.6353 $ 3,011,241 $ 184 $ 3,011,425
GSS................................................ 53,779 10.8484 582,980 -- 582,980
HYS................................................ 59,050 11.8456 699,450 -- 699,450
MSS................................................ 66,156 13.0017 858,615 370 858,985
MMS................................................ 45,153 10.8626 490,396 -- 490,396
TRS................................................ 245,135 12.5133 3,066,800 168 3,066,968
WGS................................................ 52,580 10.7674 565,483 -- 565,483
------------ ----------- ------------
$ 9,274,965 $ 722 $ 9,275,687
------------ ----------- ------------
Net Assets............................................................ $172,012,601 $860,507 $172,873,108
------------ ----------- ------------
------------ ----------- ------------
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF OPERATIONS-- Six Months Ended June 30, 1996
<TABLE>
<CAPTION>
CAS GSS HYS MSS
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain distributions
received....................................... $ 4,738,439 $ 1,612,644 $1,120,332 $1,389,216
Mortality and expense risk charges.............. 372,922 187,028 88,205 65,998
Distribution expense charges.................... 2,090 382 402 573
----------- ----------- ----------- -----------
Net investment income....................... $ 4,363,427 $ 1,425,234 $1,031,725 $1,322,645
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains on investment transactions:
Proceeds from sales........................... $ 9,191,123 $ 4,511,964 $3,685,286 $1,224,016
Cost of investments sold...................... 6,485,457 4,496,009 3,581,435 1,011,348
----------- ----------- ----------- -----------
Net realized gains.......................... $ 2,705,666 $ 15,955 $ 103,851 $ 212,668
----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) on
investments
End of period................................. $10,508,879 $ (532,177) $ (121,797 ) $ 737,693
Beginning of period........................... 11,078,267 1,795,171 692,848 1,558,915
----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation)............................. $ (569,388) $(2,327,348) $ (814,645 ) $ (821,222)
----------- ----------- ----------- -----------
Realized and unrealized gains (losses)........ $ 2,136,278 $(2,311,393) $ (710,794 ) $ (608,554)
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS....................................... $ 6,499,705 $ (886,159) $ 320,931 $ 714,091
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
MMS TRS WGS
Sub-Account Sub-Account Sub-Account Total
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain distributions
received....................................... $ 357,529 $ 2,905,588 $1,047,797 $13,171,545
Mortality and expense risk charges.............. 97,234 244,422 47,863 1,103,672
Distribution expense charges.................... 355 1,873 371 6,046
----------- ----------- ----------- -----------
Net investment income....................... $ 259,940 $ 2,659,293 $ 999,563 $12,061,827
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains on investment transactions:
Proceeds from sales........................... $ 8,483,270 $ 4,085,222 $1,175,633 $32,356,514
Cost of investments sold...................... 8,483,270 3,051,989 1,195,806 28,305,314
----------- ----------- ----------- -----------
Net realized gains (losses)................. $ -- $ 1,033,233 $ (20,173 ) $ 4,051,200
----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) on
investments
End of period................................. $ -- $ 5,516,140 $ (738,792 ) $15,369,946
Beginning of period........................... -- 7,601,596 336,154 23,062,951
----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation)............................. $ -- $(2,085,456) $(1,074,946) $(7,693,005)
----------- ----------- ----------- -----------
Realized and unrealized losses................ $ -- $(1,052,223) $(1,095,119) $(3,641,805)
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS....................................... $ 259,940 $ 1,607,070 $ (95,556 ) $ 8,420,022
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS GSS
Sub-Account Sub-Account
------------------------------ -------------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1996 1995 1996 1995
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................... $ 4,363,427 $ 552,397 $ 1,425,234 $ 1,637,451
Net realized gains....................................... 2,705,666 2,507,432 15,955 603,085
Net unrealized gains (losses)............................ (569,388) 10,932,150 (2,327,348) 2,707,574
-------------- ------------- -------------- --------------
Increase (decrease) in net assets from operations.... $ 6,499,705 $13,991,979 $ (886,159) $ 4,948,110
-------------- ------------- -------------- --------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............................. $ 1,512,800 $ 2,487,233 $ 468,319 $ 1,033,624
Net transfers between Sub-Accounts and Fixed Account... (1,335,512) 2,243,560 2,693,960 (7,186,488)
Withdrawals, surrenders, annuitizations and contract
charges............................................... (3,873,828) (5,693,451) (2,951,556) (5,369,947)
-------------- ------------- -------------- --------------
Net accumulation activity............................ $(3,696,540) $ (962,658) $ 210,723 $(11,522,811)
-------------- ------------- -------------- --------------
Annuitization Activity:
Annuitizations......................................... $ 7,455 $ 41,730 $ 10,760 $ 51,369
Annuity payments and contract charges.................. (10,465) (16,842) (21,964) (41,652)
Adjustments to annuity reserve......................... 298 2,207 347 1,228
-------------- ------------- -------------- --------------
Net annuitization activity........................... $ (2,712) $ 27,095 $ (10,857) $ 10,945
-------------- ------------- -------------- --------------
Increase (decrease) in net assets from contract owner
transactions............................................ $(3,699,253) $ (935,563) $ 199,866 $(11,511,866)
-------------- ------------- -------------- --------------
Increase (decrease) in net assets...................... $ 2,800,453 $13,056,416 $ (686,293) $ (6,563,756)
NET ASSETS:
Beginning of period...................................... 55,822,186 42,765,770 30,126,431 36,690,187
-------------- ------------- -------------- --------------
End of period............................................ $58,622,639 $55,822,186 $29,440,138 $ 30,126,431
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
<CAPTION>
HYS MSS
Sub-Account Sub-Account
------------------------------ -------------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1996 1995 1996 1995
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.................................... $ 1,031,725 $ 785,539 $ 1,322,645 $ 209,209
Net realized gains....................................... 103,851 183,759 212,668 724,204
Net unrealized gains (losses)............................ (814,645) 1,082,523 (821,222) 1,724,469
-------------- ------------- -------------- --------------
Increase in net assets from operations............... $ 320,931 $ 2,051,821 $ 714,091 $ 2,657,882
-------------- ------------- -------------- --------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............................. $ 256,300 $ 263,434 $ 356,374 $ 676,945
Net transfers between Sub-Accounts and Fixed Account... (393,620) (431,236) 413,226 1,442,412
Withdrawals, surrenders, annuitizations and contract
charges............................................... (746,395) (2,037,347) (809,900) (2,086,791)
-------------- ------------- -------------- --------------
Net accumulation activity............................ $ (883,715) $(2,205,149) $ (40,300) $ 32,566
-------------- ------------- -------------- --------------
Annuitization Activity:
Annuity payments and contract charges.................. $ (3,037) $ (5,761) $ (68) $ (121)
Adjustments to annuity reserve......................... (11) (530) (48) (148)
-------------- ------------- -------------- --------------
Net annuitization activity........................... $ (3,048) $ (6,291) $ (116) $ (269)
-------------- ------------- -------------- --------------
Increase (decrease) in net assets from contract owner
transactions............................................ $ (886,763) $(2,211,440) $ (40,416) $ 32,297
-------------- ------------- -------------- --------------
Increase (decrease) in net assets...................... $ (565,832) $ (159,619) $ 673,675 $ 2,690,179
NET ASSETS:
Beginning of period...................................... 13,936,506 14,096,125 10,225,723 7,535,544
-------------- ------------- -------------- --------------
End of period............................................ $13,370,674 $13,936,506 $10,899,398 $ 10,225,723
-------------- ------------- -------------- --------------
-------------- ------------- -------------- --------------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MMS TRS
Sub-Account Sub-Account
------------------------------ -----------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1996 1995 1996 1995
--------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................ $ 259,940 $ 711,100 $ 2,659,293 $ 975,755
Net realized gains................................... -- -- 1,033,233 2,476,482
Net unrealized gains (losses)........................ -- -- (2,085,456) 5,260,617
--------------- ------------ -------------- ------------
Increase in net assets from operations........... 259,940 $ 711,100 $ 1,607,070 $ 8,712,854
--------------- ------------ -------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received......................... $ 214,989 $ 424,234 $ 983,044 $ 1,453,111
Net transfers between Sub-Accounts and Fixed
Account........................................... (1,793,753) 5,180,410 228,625 (2,492,700)
Withdrawals, surrenders, annuitizations and
contract charges.................................. (2,839,478) (5,371,738) (3,073,721) (5,149,792)
--------------- ------------ -------------- ------------
Net accumulation activity........................ $(4,418,242) $ 232,906 $ (1,862,052) $ (6,189,381)
--------------- ------------ -------------- ------------
Annuitization Activity:
Annuitizations..................................... $ -- $ -- $ 19,227 $ --
Annuity payments and contract charges.............. (3,718) (7,368) (33,693) (59,803)
Adjustments to annuity reserve..................... (191) (11,104) (6,429) (11,643)
--------------- ------------ -------------- ------------
Net annuitization activity....................... $ (3,909) $ (18,472) $ (20,895) $ (71,446)
--------------- ------------ -------------- ------------
Increase (decrease) in net assets from contract owner
transactions........................................ $(4,422,151) $ 214,434 $ (1,882,947) $ (6,260,827)
--------------- ------------ -------------- ------------
Increase (decrease) in net assets.................. (4,162,211) $ 925,534 $ (275,877) $ 2,452,027
NET ASSETS:
Beginning of period.................................. 17,257,278 16,331,744 40,224,869 37,772,842
--------------- ------------ -------------- ------------
End of period........................................ $13,095,067 $17,257,278 $ 39,948,992 $ 40,224,869
--------------- ------------ -------------- ------------
--------------- ------------ -------------- ------------
<CAPTION>
WGS
Sub-Account Total
------------------------------ -----------------------------
Six Months Year Ended Six Months Year Ended
Ended June 30, December 31, Ended June 30, December 31,
1996 1995 1996 1995
--------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................ $ 999,563 $ 403,047 $ 12,061,827 $ 5,274,498
Net realized gains (losses).......................... (20,173) 110,004 4,051,200 6,604,966
Net unrealized gains (losses)........................ (1,074,946) 702,901 (7,693,005) 22,410,234
--------------- ------------ -------------- ------------
Increase (decrease) in net assets from
operations...................................... $ (95,556) $ 1,215,952 $ 8,420,022 $ 34,289,698
--------------- ------------ -------------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received......................... $ 291,022 $ 273,558 $ 4,082,848 $ 6,612,139
Net transfers between Sub-Accounts and Fixed
Account........................................... (292,759) (595,533) (479,833) (1,839,575)
Withdrawals, surrenders, annuitizations and account
fees.............................................. (692,952) (1,346,149) (14,987,830) (27,055,215)
--------------- ------------ -------------- ------------
Net accumulation activity........................ $ (694,689) $(1,668,124) $(11,384,815) $(22,282,651)
--------------- ------------ -------------- ------------
Annuitization Activity:
Annuitizations..................................... $ -- $ -- $ 37,442 $ 93,099
Annuity payments and contract charges.............. -- -- (72,945) (131,547)
Adjustments to annuity reserve..................... -- -- (6,034) (19,990)
--------------- ------------ -------------- ------------
Net annuitization activity....................... $ -- $ -- $ (41,537) $ (58,438)
--------------- ------------ -------------- ------------
Decrease in net assets from contract owner
transactions........................................ $ (694,689) $(1,668,124) $(11,426,352) $(22,341,089)
--------------- ------------ -------------- ------------
Increase (decrease) in net assets.................. $ (790,245) $ (452,172) $ (3,006,330) $ 11,948,609
NET ASSETS:
Beginning of period.................................. 8,286,445 8,738,617 175,879,438 163,930,829
--------------- ------------ -------------- ------------
End of period........................................ $ 7,496,200 $ 8,286,445 $172,873,108 $175,879,438
--------------- ------------ -------------- ------------
--------------- ------------ -------------- ------------
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life (N.Y.) Variable Account B (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 series of MFS/Sun Life Series
Trust (the "Series Trust") as selected by contract owners. The Series Trust is
an open-end management investment company registered under the Investment
Company Act of 1940. Massachusetts Financial Services Company, a subsidiary of
Sun Life Assurance Company of Canada (U.S.), is investment adviser to the Series
Trust.
(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 revenue 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 Series Trust 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.
(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
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS -- continued
Sponsor. These deductions are transferred periodically to the Sponsor.
Currently, the deduction is at an effective annual rate of 1.3% of the assets of
the Variable Account attributable to Compass 2 contracts and 1.25% of the assets
of the Variable Account attributable to Compass 3 contracts.
Each year on the contract anniversary, a contract maintenance charge of $30 is
deducted from each contract's accumulation account to cover administrative
expenses relating to the contract. After the annuity commencement date the
charge 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 (including the distribution expense charge
described below applicable to Compass 3 contracts) exceed 5% of the purchase
payments made under a Compass 2 contract or 9% of the purchase payments made
under a Compass 3 contract.
For assuming the risk that withdrawal charges may be insufficient to compensate
it for the costs of distributing the Compass 3 contracts, the Sponsor makes a
deduction from the Variable Account at the end of each valuation period for the
first seven contract years (during both the accumulation period and, if
applicable, after annuity payments begin) at an effective annual rate of 0.15%
of the assets of the Variable Account attributable to such contracts. No
deduction is made after the seventh contract anniversary. No such deduction is
made with respect to assets attributable to Compass 2 contracts.
(4) ANNUITY RESERVES
Annuity reserves for contracts with annuity commencement dates prior to February
1, 1987 have been calculated using the 1971 Individual Annuitant Mortality
Table. Annuity reserves for contracts with annuity commencement dates on or
after February 1, 1987 are calculated using the 1983 Individual Annuitant
Mortality Table. All annuity reserves are calculated using an assumed interest
rate of 4%. Required adjustments to the reserve are accomplished by transfers to
or from the Sponsor.
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
Units
Withdrawn,
Units Transferred Surrendered,
Units Outstanding Between Sub-Accounts and and
Beginning of Period Units Purchased Fixed Account Annuitized
------------------------- ------------------------- ------------------------- ----------
Six Months Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended
COMPASS 2 CONTRACTS June 30, December 31, June 30, December 31, June 30, December 31, June 30,
1996 1995 1996 1995 1996 1995 1996
---------------------------- ---------- ------------ ---------- ------------ ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CAS Sub-Account 1,311,905 1,352,145 21,235 53,525 (23,165) 61,551 (88,032)
GSS Sub-Account 1,317,288 1,877,778 16,950 40,875 120,556 (341,163) (133,250)
HYS Sub-Account 570,116 673,380 3,228 8,072 (16,770) (19,382) (30,735)
MSS Sub-Account 331,221 328,532 6,867 14,042 12,219 63,983 (25,939)
MMS Sub-Account 1,084,910 1,074,216 10,659 22,486 (112,854) 338,828 (181,743)
TRS Sub-Account 1,740,564 2,083,366 19,870 52,963 (821) (132,595) (137,708)
WGS Sub-Account 433,736 530,682 6,778 11,682 (11,216) (31,859) (38,315)
<CAPTION>
COMPASS 3 CONTRACTS
----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CAS Sub-Account 184,876 135,042 41,878 51,695 (16,275) 6,001 (4,709)
GSS Sub-Account 39,286 32,725 8,825 17,789 7,288 (9,242) (1,620)
HYS Sub-Account 43,963 37,197 15,211 7,798 976 1,400 (1,100)
MSS Sub-Account 53,846 28,752 11,673 27,333 2,822 (147) (2,185)
MMS Sub-Account 44,348 33,901 4,486 7,957 (3,107) 4,581 (574)
TRS Sub-Account 185,716 154,543 44,447 39,993 19,416 (2,984) (4,444)
WGS Sub-Account 46,895 43,259 16,080 6,637 (8,986) 191 (1,409)
<CAPTION>
Units Outstanding
End of Period
-------------------------
Six Months
Year Ended Ended Year Ended
COMPASS 2 C December 31, June 30, December 31,
1995 1996 1995
--------------- ------------ ---------- ------------
<S> <C> <C> <C>
CAS (155,316) 1,221,943 1,311,905
GSS (260,202) 1,321,544 1,317,288
HYS (91,954) 525,839 570,116
MSS (75,336) 324,368 331,221
MMS (350,620) 800,972 1,084,910
TRS (263,170) 1,621,905 1,740,564
WGS (76,769) 390,983 433,736
COMPASS 3 C
---------------
<S> <C> <C> <C>
CAS (7,862) 205,770 184,876
GSS (1,986) 53,779 39,286
HYS (2,432) 59,050 43,963
MSS (2,092) 66,156 53,846
MMS (2,091) 45,153 44,348
TRS (5,836) 245,135 185,716
WGS (3,192) 52,580 46,895
</TABLE>
7
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants in Sun Life (N.Y.) Variable Account B
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 B (the "Variable Account") as of June 30, 1996, the related
statements of operations for the six months then ended and the statements of
changes in net assets for the six months then ended and the year ended December
31, 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. 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 June 30, 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.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 2, 1996
8
