<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENT OF CONDITION
-- June 30, 2000
<TABLE>
<CAPTION>
ASSETS: Shares Cost Value
Investments in MFS/Sun Life Series Trust: ----------- ------------ ------------
<S> <C> <C> <C>
Capital Appreciation Series (CAS)....................... $ 1,629,102 $ 66,805,211 $ 81,210,656
Government Securities Series (GSS)...................... 1,291,543 16,249,873 15,738,754
High Yield Series (HYS)................................. 990,255 8,793,567 8,112,444
Money Market Series (MMS)............................... 12,390,765 12,390,765 12,390,765
Managed Sectors Series (MSS)............................ 482,760 16,298,428 18,899,585
Total Return Series (TRS)............................... 1,779,038 33,992,094 30,848,412
Global Governments Series (GGS)......................... 236,345 2,525,185 2,305,436
------------ ------------
$157,055,123 $169,506,052
============
LIABILITY:
Payable to sponsor.................................................................... (92,323)
------------
Net Assets...................................................................... $169,413,729
============
</TABLE>
<TABLE>
<CAPTION>
NET ASSETS:
Applicable to Owners of
Deferred Variable Annuity Contracts Reserve for
------------------------------------ Variable
Units Unit Value Value Annuities Total
COMPASS 2 CONTRACTS: -------- ---------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
CAS.................................................. 671,108 $ 103.9453 $ 69,753,375 $ 383,354 $ 70,136,729
GSS.................................................. 569,316 25.9993 14,798,057 75,252 14,873,309
HYS.................................................. 242,018 30.2482 7,323,719 34,634 7,358,353
MMS.................................................. 645,046 18.1698 11,710,362 9,608 11,719,970
MSS.................................................. 190,656 78.0001 14,913,865 68,890 14,982,755
TRS.................................................. 761,019 33.3786 25,498,509 568,307 26,066,816
GGS.................................................. 102,130 19.0811 1,961,825 -- 1,961,825
------------ ---------- ------------
$145,959,712 $1,140,045 $147,099,757
------------ ---------- ------------
COMPASS 3 CONTRACTS:
CAS.................................................. 331,654 $ 33.3893 $ 11,073,177 $ -- $ 11,073,177
GSS.................................................. 67,053 12.9194 865,713 -- 865,713
HYS.................................................. 50,391 14.8637 749,418 -- 749,418
MMS.................................................. 52,846 12.4997 660,179 -- 660,179
MSS.................................................. 119,873 32.7782 3,912,731 -- 3,912,731
TRS.................................................. 253,648 18.5697 4,709,143 -- 4,709,143
GGS.................................................. 29,808 11.5524 343,611 -- 343,611
------------ ---------- ------------
$ 22,313,972 $ -- $ 22,313,972
------------ ---------- ------------
Net Assets.............................................................. $168,273,684 $1,140,045 $169,413,729
============ ========== ============
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENT OF OPERATIONS
-- Six Months Ended June 30, 2000
<TABLE>
<CAPTION>
CAS GSS HYS MMS
Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain distributions received... $10,089,506 $ 979,073 $ 727,334 $ 353,230
Mortality and expense risk charges........................ (512,656) (110,836) (52,198) (82,963)
Distribution expense charges.............................. (8,112) (673) (570) (511)
----------- ----------- ----------- -----------
Net investment income (loss).......................... $ 9,568,738 $ 867,564 $ 674,566 $ 269,756
----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment transactions:
Proceeds from sales..................................... $ 9,814,754 $5,431,171 $1,748,717 $ 6,484,944
Cost of investments sold................................ (6,402,025) (5,507,197) (1,811,246) (6,484,944)
----------- ----------- ----------- -----------
Net realized gains (losses)........................... $ 3,412,729 $ (76,026) $ (62,529) $ --
----------- ----------- ----------- -----------
Net unrealized appreciation (depreciation) on investments:
End of period........................................... $14,405,445 $ (511,119) $ (681,123) $ --
Beginning of period..................................... 23,110,236 (345,386) (33,661) --
----------- ----------- ----------- -----------
Change in unrealized appreciation (depreciation)...... $(8,704,791) $ (165,733) $ (647,462) $ --
----------- ----------- ----------- -----------
Realized and unrealized gains (losses).................. $(5,292,062) $ (241,759) $ (709,991) $ --
----------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS....... $ 4,276,676 $ 625,805 $ (35,425) $ 269,756
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
MSS TRS GGS
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain distributions received... $ 3,642,433 $3,156,974 $ 96,548
Mortality and expense risk charges........................ (132,423) (198,719) (15,304)
Distribution expense charges.............................. (3,073) (3,735) (255)
----------- ----------- -----------
Net investment income (loss).......................... $ 3,506,937 $2,954,520 $ 80,989
----------- ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment transactions:
Proceeds from sales..................................... $ 3,261,593 $6,216,937 $ 510,995
Cost of investments sold................................ (1,691,607) (5,539,291) (561,042)
----------- ----------- -----------
Net realized gains (losses)........................... $ 1,569,986 $ 677,646 $ (50,047)
----------- ----------- -----------
Net unrealized appreciation (depreciation) on investments:
End of period........................................... $ 2,601,157 $(3,143,682) $ (219,749)
Beginning of period..................................... 9,392,435 (136,539) (147,179)
----------- ----------- -----------
Change in unrealized appreciation (depreciation)...... $(6,791,278) $(3,007,143) $ (72,570)
----------- ----------- -----------
Realized and unrealized gains (losses).................. $(5,221,292) $(2,329,497) $ (122,617)
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS....... $(1,714,355) $ 625,023 $ (41,628)
=========== =========== ===========
</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 Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 9,568,738 $ 7,214,663 $ 867,564 $ 740,061
Net realized gains (losses)............................... 3,412,729 6,666,954 (76,026) 100,172
Net unrealized gains (losses)............................. (8,704,791) 6,504,901 (165,733) (1,471,762)
----------- ------------ ----------- -----------
Increase (Decrease) in net assets from operations..... $ 4,276,676 $ 20,386,518 $ 625,805 $ (631,529)
----------- ------------ ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 944,374 $ 1,714,153 $ 171,188 $ 366,181
Net transfers between Sub-Accounts and Fixed Account.... (181,949) (2,717,099) (1,716,264) 1,300,244
Withdrawals, surrenders, annuitizations and contract
charges............................................... (6,452,449) (11,492,973) (1,845,799) (2,582,016)
----------- ------------ ----------- -----------
Net accumulation activity............................. $(5,690,024) $(12,495,919) $(3,390,875) $ (915,591)
----------- ------------ ----------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ -- $ -- $ --
Annuity payments and contract charges................... (24,156) (34,365) (5,344) (10,821)
Adjustments to annuity reserve.......................... (2,424) (3,669) (177) (571)
----------- ------------ ----------- -----------
Net annuitization activity............................ $ (26,580) $ (38,034) $ (5,521) $ (11,392)
----------- ------------ ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $(5,716,604) $(12,533,953) $(3,396,396) $ (926,983)
----------- ------------ ----------- -----------
Increase (Decrease) in net assets....................... $(1,439,928) $ 7,852,565 $(2,770,591) $(1,558,512)
NET ASSETS:
Beginning of period....................................... 82,649,834 74,797,269 18,509,613 20,068,125
----------- ------------ ----------- -----------
End of period............................................. $81,209,906 $ 82,649,834 $15,739,022 $18,509,613
=========== ============ =========== ===========
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
HYS MMS
Sub-Account Sub-Account
-------------------------- ----------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
---------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 674,566 $ 664,857 $ 269,756 $ 436,945
Net realized gains (losses)............................... (62,529) 46,862 -- --
Net unrealized gains (losses)............................. (647,462) (158,018) -- --
---------- ----------- ----------- -----------
Increase (Decrease) in net assets from operations......... $ (35,425) $ 553,701 $ 269,756 $ 436,945
---------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 60,576 $ 139,687 $ 82,897 $ 331,312
Net transfers between Sub-Accounts and Fixed Account.... 313,904 (146,150) 1,380,251 2,778,316
Withdrawals, surrenders, annuitizations and contract
charges............................................... (787,293) (2,315,482) (1,714,823) (4,633,677)
---------- ----------- ----------- -----------
Net accumulation activity............................. $ (412,813) $(2,321,945) $ (251,675) $(1,524,049)
---------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ -- $ -- $ --
Annuity payments and contract charges................... (2,357) (4,781) (531) (991)
Adjustments to annuity reserves......................... 247 36 (296) (489)
---------- ----------- ----------- -----------
Net annuitization activity............................ $ (2,110) $ (4,745) $ (827) $ (1,480)
---------- ----------- ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $ (414,923) $(2,326,690) $ (252,502) $(1,525,529)
---------- ----------- ----------- -----------
Increase (Decrease) in net assets......................... $ (450,348) $(1,772,989) $ 17,254 (1,088,584)
NET ASSETS:
Beginning of period....................................... 8,558,119 10,331,108 12,362,895 13,451,479
---------- ----------- ----------- -----------
End of period............................................. $8,107,771 $ 8,558,119 $12,380,149 $12,362,895
========== =========== =========== ===========
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MSS TRS
Sub-Account Sub-Account
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
2000 1999 2000 1999
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 3,506,937 $ (184,251) $ 2,954,520 $ 5,150,381
Net realized gains (losses)............................... 1,569,986 1,085,821 677,646 1,833,572
Net unrealized gains (losses)............................. (6,791,278) 8,751,129 (3,007,143) (6,361,157)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from operations......... $(1,714,355) $ 9,652,699 $ 625,023 $ 622,796
----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 275,384 $ 473,194 $ 428,629 $ 777,915
Net transfers between Sub-Accounts and Fixed Account.... 1,164,604 669,451 (853,974) (1,352,900)
Withdrawals, surrenders, annuitizations and contract
charges............................................... (1,700,730) (2,808,685) (4,057,043) (6,001,510)
----------- ----------- ----------- -----------
Net accumulation activity............................. $ (260,742) $(1,666,040) $(4,482,388) $(6,576,495)
----------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ -- $ 113,373 $ --
Annuity payments and contract charges................... (5,780) (3,962) (56,962) (108,609)
Adjustments to annuity reserves......................... (265) (2,394) 14,572 (8,680)
----------- ----------- ----------- -----------
Net annuitization activity............................ $ (6,045) $ (6,356) $ 70,983 $ (117,289)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $ (266,787) $(1,672,396) $(4,411,405) $(6,693,784)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets......................... $(1,981,142) $ 7,980,303 $(3,786,382) $(6,070,988)
NET ASSETS:
Beginning of period....................................... 20,876,628 12,896,325 34,562,341 40,633,329
----------- ----------- ----------- -----------
End of period............................................. $18,895,486 $20,876,628 $30,775,959 $34,562,341
=========== =========== =========== ===========
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GGS
Sub-Account
--------------------------
Six Months
Ended Year Ended
June 30, December 31,
2000 1999
---------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 80,989 $354,894
Net realized gains (losses)............................... (50,047) (65,745 )
Net unrealized gains (losses)............................. (72,570) (524,276 )
---------- ----------
Increase (Decrease) in net assets from operations......... $ (41,628) $(235,127 )
---------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 36,009 $ 99,671
Net transfers between Sub-Accounts and Fixed Account.... (298,364) (269,717 )
Withdrawals, surrenders, annuitizations and contract
charges................................................ (203,275) (526,930 )
---------- ----------
Net accumulation activity............................. $ (465,630) $(696,976 )
---------- ----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ --
Annuity payments and contract charges................... -- --
Adjustments to annuity reserves......................... -- --
---------- ----------
Net annuitization activity............................ $ -- $ --
---------- ----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $ (465,630) $(696,976 )
---------- ----------
Increase (Decrease) in net assets......................... $ (507,258) $(932,103 )
NET ASSETS:
Beginning of period....................................... 2,812,694 3,744,797
---------- ----------
End of period............................................. $2,305,436 2$,812,694
========== ==========
</TABLE>
See notes to financial statements
6
<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 ("MFS"), an
affiliate 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 accounting principles
generally accepted in the United States of America 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 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 taxable, and
therefore, no provision has been made for federal income taxes.
(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
7
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS -- continued
(3) CONTRACT CHARGES -- 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) of up to 6% of certain
amount withdrawn, when applicable, will 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.
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS
<TABLE>
<CAPTION>
CAS GSS HYS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
COMPASS 2 CONTRACTS: 2000 1999 2000 1999 2000 1999
-------------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period 723,461 881,482 698,455 737,003 253,467 327,184
Units purchased 3,959 9,916 6,681 16,589 856 2,531
Units transferred between Sub-Accounts
and Fixed Account 677 (33,469) (65,730) 42,637 12,526 (4,831 )
Units withdrawn, surrendered, and
annuitized (56,989) (134,468) (70,090) (97,774) (24,831) (71,417 )
-------- ---------- --------- ---------- -------- ---------
Units Outstanding End of Period 671,108 723,461 569,316 698,455 242,018 253,467
======== ========== ========= ========== ======== =========
<CAPTION>
MSS TRS GGS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period 198,732 230,507 881,186 1,076,662 124,494 158,924
Units purchased 1,575 3,640 9,239 14,751 1,213 3,999
Units transferred between Sub-Accounts
and Fixed Account 8,069 11,067 (23,430) (41,729) (13,582) (12,898 )
Units withdrawn, surrendered, and
annuitized (17,720) (46,482) (105,976) (168,498) (9,995) (25,531 )
-------- ---------- --------- ---------- -------- ---------
Units Outstanding End of Period 190,656 198,732 761,019 881,186 102,130 124,494
======== ========== ========= ========== ======== =========
<CAPTION>
<S> <C> <C>
Units Outstanding Beginning of Period 662,084 745,670
Units purchased 3,529 13,565
Units transferred between Sub-Accounts
and Fixed Account 70,000 156,398
Units withdrawn, surrendered, and
annuitized (90,567) (253,549)
-------- ----------
Units Outstanding End of Period 645,046 662,084
======== ==========
Units Outstanding Beginning of Period
Units purchased
Units transferred between Sub-Accounts
and Fixed Account
Units withdrawn, surrendered, and
annuitized
Units Outstanding End of Period
</TABLE>
9
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM PARTICIPANT TRANSACTIONS -- continued
<TABLE>
<CAPTION>
CAS GSS HYS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
COMPASS 3 CONTRACTS: 2000 1999 2000 1999 2000 1999
-------------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period 349,564 339,067 72,199 67,394 54,240 60,336
Units purchased 18,265 40,048 1,877 3,908 2,138 5,236
Units transferred between Sub-Accounts
and Fixed Account (10,421) (29 ) (1,917) 9,029 (3,801) (184 )
Units withdrawn, surrendered, and
annuitized (25,754) (29,522 ) (5,106) (8,132 ) (2,186) (11,148 )
-------- --------- -------- --------- -------- ---------
Units Outstanding End of Period 331,654 349,564 67,053 72,199 50,391 54,240
======== ========= ======== ========= ======== =========
<CAPTION>
MSS TRS GGS
Sub-Account Sub-Account Sub-Account
-------------------------- -------------------------- --------------------------
Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31, June 30, December 31,
2000 1999 2000 1999 2000 1999
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Period 112,125 113,778 286,275 296,455 33,432 35,645
Units purchased 4,357 14,017 7,817 21,166 1,410 3,228
Units transferred between Sub-Accounts
and Fixed Account 9,541 (3,273 ) (6,767) (6,116 ) (3,760) (3,048 )
Units withdrawn, surrendered, and
annuitized (6,150) (12,397 ) (33,677) (25,230 ) (1,274) (2,393 )
-------- --------- -------- --------- -------- ---------
Units Outstanding End of Period 119,873 112,125 253,648 286,275 29,808 33,432
======== ========= ======== ========= ======== =========
<CAPTION>
<S> <C> <C>
Units Outstanding Beginning of Period 47,556 51,357
Units purchased 1,919 8,442
Units transferred between Sub-Accounts
and Fixed Account 10,487 2,921
Units withdrawn, surrendered, and
annuitized (7,116) (15,164 )
-------- ---------
Units Outstanding End of Period 52,846 47,556
======== =========
Units Outstanding Beginning of Period
Units purchased
Units transferred between Sub-Accounts
and Fixed Account
Units withdrawn, surrendered, and
annuitized
Units Outstanding End of Period
</TABLE>
10
<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 Capital Appreciation
Series Sub-Account, Government Securities Series Sub-Account, High Yield Series
Sub-Account, Money Market Series Sub-Account, Managed Sectors Series
Sub-Account, Total Return Series Sub-Account and Global Governments Series
Sub-Account of Sun Life (N.Y.) Variable Account B (the "Sub-Accounts") as of
June 30, 2000, the related statement of operations for the six months then ended
and the statements of changes in net assets for the six months ended June 30,
2000 and the year ended December 31, 1999. 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 auditing standards generally accepted
in the United States of America. 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 June 30,
2000 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 as of June 30, 2000 and the
results of their operations and the changes in their net assets for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
August 11, 2000
----------------------------------------
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.
<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY
OF NEW YORK
122 E. 42nd Street, Suite 1900, New
York, NY 10017
DIRECTORS AND OFFICERS
DONALD A. STEWART, Chairman and
Director
C. JAMES PRIEUR, Vice Chairman and
Director
JAMES A. McNULTY, III, President and
Director
[LOGO]PROFESSIONALLY MANAGED COMBINATION
S. CAESAR RABOY, Director
FIXED/VARIABLE ANNUITIES
RICHARD B. BAILEY, Director
FOR PERSONAL INVESTMENTS AND
QUALIFIED RETIREMENT PLANS
DAVID D. HORN, Director
------------------------------------------------
JOHN G. IRELAND, Director
SEMI-ANNUAL REPORT, JUNE 30, 2000
GREGORY W. GEE, Director
DONALD B. HENDERSON, Jr., Director
ANGUS A. MacNAUGHTON, Director
PETER R. O'FLINN, Director
FIORAVANTE G. PERROTTA, Director
RALPH F. PETERS, Director
FREDERICK B. WHITTEMORE, Director
WILLIAM W. STINSON, Director
PETER F. DEMUTH, Vice President and
Chief
Counsel and Assistant Secretary
ELLEN B. KING, Counsel and Secretary
ROBERT VROLYK, Vice President and
Actuary
DAVEY S. SCOON, Vice President,
Finance, Controller
and Treasurer
RONALD J. FERNANDES, Vice President,
Retirement Products and Services
JAMES M.A. ANDERSON, Vice President,
[LOGO]
Investments
GENERAL DISTRIBUTOR
Clarendon Insurance Agency, Inc.
One Sun Life Executive Park
Wellesley Hills, Massachusetts 02481
AUDITORS
Deloitte & Touche LLP
200 Berkeley Street, Boston,
Massachusetts 02116
ISSUED BY
RENY3-8/00 4M SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
