<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENT OF CONDITION
-- December 31, 1999
<TABLE>
<CAPTION>
ASSETS: Shares Cost Value
Investments in MFS/Sun Life Series Trust: ---------- ------------ ------------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS")...... 1,527,248 $ 59,537,924 $ 82,648,160
Government Securities Series ("GSS")..... 1,483,463 18,854,554 18,509,168
High Yield Series ("HYS")................ 949,743 8,596,700 8,563,039
Money Market Series ("MMS").............. 12,373,215 12,373,215 12,373,215
Managed Sectors Series ("MSS")........... 398,318 11,488,027 20,880,462
Total Return Series ("TRS").............. 1,847,054 34,785,905 34,649,366
Global Governments Series ("GGS")........ 273,981 2,959,873 2,812,694
------------ ------------
$148,596,198 $180,436,104
============
LIABILITY:
Payable to sponsor................................................... (103,980)
------------
Net Assets..................................................... $180,332,124
============
</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................................................ 723,461 $98.4308 $ 71,205,879 $ 386,582 $ 71,592,461
GSS................................................ 698,455 25.1036 17,531,391 77,651 17,609,042
HYS................................................ 253,467 30.4067 7,710,132 36,696 7,746,828
MMS................................................ 662,084 17.7923 11,770,983 9,878 11,780,861
MSS................................................ 198,732 84.4636 16,831,824 80,727 16,912,551
TRS................................................ 881,186 32.6681 28,881,144 476,619 29,357,763
GGS................................................ 124,494 19.3460 2,421,657 -- 2,421,657
------------ ---------- ------------
$156,353,010 $1,068,153 $157,421,163
------------ ---------- ------------
COMPASS 3 CONTRACTS:
CAS................................................ 349,564 $31.6334 $ 11,057,373 $ -- $ 11,057,373
GSS................................................ 72,199 12.4804 900,571 -- 900,571
HYS................................................ 54,240 14.9489 811,291 -- 811,291
MMS................................................ 47,556 12.2461 582,034 -- 582,034
MSS................................................ 112,125 35.5119 3,964,077 -- 3,964,077
TRS................................................ 286,275 18.1833 5,204,578 -- 5,204,578
GGS................................................ 33,432 11.7186 391,037 -- 391,037
------------ ---------- ------------
$ 22,910,961 $ -- $ 22,910,961
------------ ---------- ------------
Net Assets............................................................. $179,263,971 $1,068,153 $180,332,124
============ ========== ============
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT B
STATEMENT OF OPERATIONS
-- Year Ended December 31, 1999
<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...................................... $ 8,163,481 $ 995,583 $ 787,773 $ 611,158
Mortality and expense risk charges.............. (935,895) (254,121) (121,657) (173,132)
Distribution expense charges.................... (12,923) (1,401) (1,259) (1,081)
------------ ----------- ----------- ------------
Net investment income (loss)................ $ 7,214,663 $ 740,061 $ 664,857 $ 436,945
------------ ----------- ----------- ------------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales........................... $ 19,814,527 $4,615,725 $6,036,161 $ 10,627,519
Cost of investments sold...................... (13,147,573) (4,515,553) (5,989,299) (10,627,519)
------------ ----------- ----------- ------------
Net realized gains (losses)................. $ 6,666,954 $ 100,172 $ 46,862 $ --
------------ ----------- ----------- ------------
Net unrealized appreciation (depreciation) on
investments:
End of year................................... $ 23,110,236 $ (345,386) $ (33,661) $ --
Beginning of year............................. 16,605,335 1,126,376 124,357 --
------------ ----------- ----------- ------------
Change in unrealized appreciation
(depreciation)............................ $ 6,504,901 $(1,471,762) $ (158,018) $ --
------------ ----------- ----------- ------------
Realized and unrealized gains (losses)........ $ 13,171,855 $(1,371,590) $ (111,156) $ --
------------ ----------- ----------- ------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.................................. $ 20,386,518 $ (631,529) $ 553,701 $ 436,945
============ =========== =========== ============
</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...................................... $ -- $5,628,541 $ 397,572
Mortality and expense risk charges.............. (180,435) (470,234) (42,049)
Distribution expense charges.................... (3,816) (7,926) (629)
------------ ----------- -----------
Net investment income (loss)................ $ (184,251) $5,150,381 $ 354,894
------------ ----------- -----------
REALIZED AND UNREALIZED GAINS (LOSSES):
Realized gains (losses) on investment
transactions:
Proceeds from sales........................... $ 4,454,650 $9,010,684 $ 886,287
Cost of investments sold...................... (3,368,829) (7,177,112) (952,032)
------------ ----------- -----------
Net realized gains (losses)................. $ 1,085,821 $1,833,572 $ (65,745)
------------ ----------- -----------
Net unrealized appreciation (depreciation) on
investments:
End of year................................... $ 9,392,435 $ (136,539) $ (147,179)
Beginning of year............................. 641,306 6,224,618 377,097
------------ ----------- -----------
Change in unrealized appreciation
(depreciation)............................ $ 8,751,129 $(6,361,157) $ (524,276)
------------ ----------- -----------
Realized and unrealized gains (losses)........ $ 9,836,950 $(4,527,585) $ (590,021)
------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS.................................. $ 9,652,699 $ 622,796 $ (235,127)
============ =========== ===========
</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
---------------------------- ----------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
-------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 7,214,663 $ 7,202,019 $ 740,061 $ 898,057
Net realized gains (losses)............................... 6,666,954 10,266,206 100,172 521,218
Net unrealized gains (losses)............................. 6,504,901 86,450 (1,471,762) 75,036
------------ ------------ ----------- -----------
Increase (Decrease) in net assets from operations..... $ 20,386,518 $ 17,554,675 $ (631,529) $ 1,494,311
------------ ------------ ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 1,714,153 $ 2,540,950 $ 366,181 $ 664,851
Net transfers between Sub-Accounts and Fixed Account.... (2,717,099) (3,626,538) 1,300,244 (871,865)
Withdrawals, surrenders, annuitizations and contract
charges............................................... (11,492,973) (9,568,674) (2,582,016) (3,638,620)
------------ ------------ ----------- -----------
Net accumulation activity............................. $(12,495,919) $(10,654,262) $ (915,591) $(3,845,634)
------------ ------------ ----------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ 52,914 $ -- $ --
Annuity payments and contract charges................... (34,365) (30,074) (10,821) (12,398)
Adjustments to annuity reserve.......................... (3,669) (2,453) (571) 666
------------ ------------ ----------- -----------
Net annuitization activity............................ $ (38,034) $ 20,387 $ (11,392) $ (11,732)
------------ ------------ ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $(12,533,953) $(10,633,875) $ (926,983) $(3,857,366)
------------ ------------ ----------- -----------
Increase (Decrease) in net assets....................... $ 7,852,565 $ 6,920,800 $(1,558,512) $(2,363,055)
NET ASSETS:
Beginning of year......................................... 74,797,269 67,876,469 20,068,125 22,431,180
------------ ------------ ----------- -----------
End of year............................................... $ 82,649,834 $ 74,797,269 $18,509,613 $20,068,125
============ ============ =========== ===========
</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
--------------------------- ----------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 664,857 $ 632,722 $ 436,945 $ 456,307
Net realized gains (losses)............................... 46,862 346,052 -- --
Net unrealized gains (losses)............................. (158,018) (1,027,552) -- --
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from operations......... $ 553,701 $ (48,778) $ 436,945 $ 456,307
----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 139,687 $ 210,963 $ 331,312 $ 307,131
Net transfers between Sub-Accounts and Fixed Account.... (146,150) (1,472,620) 2,778,316 7,369,452
Withdrawals, surrenders, annuitizations and contract
charges............................................... (2,315,482) (1,495,462) (4,633,677) (7,077,196)
----------- ----------- ----------- -----------
Net accumulation activity............................. $(2,321,945) $(2,757,119) $(1,524,049) $ 599,387
----------- ----------- ----------- -----------
Annuitization Activity:
Annuity payments and contract charges................... $ (4,781) $ (4,897) $ (991) $ (1,057)
Adjustments to annuity reserves......................... 36 56 (489) (471)
----------- ----------- ----------- -----------
Net annuitization activity............................ $ (4,745) $ (4,841) $ (1,480) $ (1,528)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $(2,326,690) $(2,761,960) $(1,525,529) $ 597,859
----------- ----------- ----------- -----------
Increase (Decrease) in net assets......................... $(1,772,989) $(2,810,738) $(1,088,584) 1,054,166
NET ASSETS:
Beginning of year......................................... 10,331,108 13,141,846 13,451,479 12,397,313
----------- ----------- ----------- -----------
End of year............................................... $ 8,558,119 $10,331,108 $12,362,895 $13,451,479
=========== =========== =========== ===========
</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
--------------------------- ----------------------------
Year Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ (184,251) $ 1,746,947 $ 5,150,381 $ 4,241,657
Net realized gains (losses)............................... 1,085,821 894,798 1,833,572 3,450,365
Net unrealized gains (losses)............................. 8,751,129 (1,357,946) (6,361,157) (3,487,755)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from operations......... $ 9,652,699 $ 1,283,799 $ 622,796 $ 4,204,267
----------- ----------- ----------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 473,194 $ 828,932 $ 777,915 $ 1,457,947
Net transfers between Sub-Accounts and Fixed Account.... 669,451 179,600 (1,352,900) (1,063,470)
Withdrawals, surrenders, annuitizations and contract
charges............................................... (2,808,685) (2,473,049) (6,001,510) (8,364,694)
----------- ----------- ----------- -----------
Net accumulation activity............................. $(1,666,040) $(1,464,517) $(6,576,495) $(7,970,217)
----------- ----------- ----------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ 52,940 $ -- $ --
Annuity payments and contract charges................... (3,962) (3,921) (108,609) (92,029)
Adjustments to annuity reserves......................... (2,394) (564) (8,680) (14,828)
----------- ----------- ----------- -----------
Net annuitization activity............................ $ (6,356) $ 48,455 $ (117,289) $ (106,857)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $(1,672,396) $(1,416,062) $(6,693,784) $(8,077,074)
----------- ----------- ----------- -----------
Increase (Decrease) in net assets......................... $ 7,980,303 $ (132,263) $(6,070,988) $(3,872,807)
NET ASSETS:
Beginning of year......................................... 12,896,325 13,028,588 40,633,329 44,506,136
----------- ----------- ----------- -----------
End of year............................................... $20,876,628 $12,896,325 $34,562,341 $40,633,329
=========== =========== =========== ===========
</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
--------------------------
Year Ended
December 31,
1999 1998
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss).............................. $ 354,894 $ (289)
Net realized gains (losses)............................... (65,745) (239,837)
Net unrealized gains (losses)............................. (524,276) 738,143
---------- -----------
Increase (Decrease) in net assets from operations......... $ (235,127) $ 498,017
---------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received.............................. $ 99,671 $ 172,382
Net transfers between Sub-Accounts and Fixed Account.... (269,717) (760,745)
Withdrawals, surrenders, annuitizations and contract
charges............................................... (526,930) (1,301,883)
---------- -----------
Net accumulation activity............................. $ (696,976) $(1,890,246)
---------- -----------
Annuitization Activity:
Annuitizations.......................................... $ -- $ --
Annuity payments and contract charges................... -- --
Adjustments to annuity reserves......................... -- --
---------- -----------
Net annuitization activity............................ $ -- $ --
---------- -----------
Increase (Decrease) in net assets from contract owner
transactions............................................ $ (696,976) $(1,890,246)
---------- -----------
Increase (Decrease) in net assets......................... $ (932,103) $(1,392,229)
NET ASSETS:
Beginning of year......................................... 3,744,797 5,137,026
---------- -----------
End of year............................................... $2,812,694 $ 3,744,797
========== ===========
</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 generally accepted
accounting principles 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) 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.
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 MMS
Sub-Account Sub-Account Sub-Account Sub-Account
-------------------- --------------------- ----------------- -------------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
COMPASS 2 CONTRACTS: 1999 1998 1999 1998 1999 1998 1999 1998
- -------------------- --------- ---------- ---------- ---------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Year 881,482 1,049,111 737,003 897,267 327,184 421,472 745,670 713,552
Units purchased 9,916 15,299 16,589 17,550 2,531 2,836 13,565 11,975
Units transferred between Sub-Accounts
and Fixed Account (33,469) (44,627) 42,637 (36,206) (4,831) (49,178) 156,398 426,262
Units withdrawn, surrendered, and
annuitized (134,468) (138,301) (97,774) (141,608) (71,417) (47,946) (253,549) (406,119)
-------- --------- --------- --------- ------- ------- -------- --------
Units Outstanding End of Year 723,461 881,482 698,455 737,003 253,467 327,184 662,084 745,670
======== ========= ========= ========= ======= ======= ======== ========
<CAPTION>
MSS TRS GGS
Sub-Account Sub-Account Sub-Account
-------------------- --------------------- -----------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
--------- ---------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Year 230,507 270,624 1,076,662 1,345,153 158,924 256,940
Units purchased 3,640 6,466 14,751 18,920 3,999 5,460
Units transferred between Sub-Accounts
and Fixed Account 11,067 3,355 (41,729) (33,825) (12,898) (37,228)
Units withdrawn, surrendered, and
annuitized (46,482) (49,938) (168,498) (253,586) (25,531) (66,248)
-------- --------- --------- --------- ------- -------
Units Outstanding End of Year 198,732 230,507 881,186 1,076,662 124,494 158,924
======== ========= ========= ========= ======= =======
</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 MMS
Sub-Account Sub-Account Sub-Account Sub-Account
----------------- ----------------- --------------- ---------------
Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31,
COMPASS 3 CONTRACTS: 1999 1998 1999 1998 1999 1998 1999 1998
- -------------------- -------- -------- -------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Year 339,067 291,968 67,394 55,194 60,336 60,217 51,357 47,433
Units purchased 40,048 73,560 3,908 17,879 5,236 8,915 8,442 9,088
Units transferred between Sub-Accounts and Fixed
Account (29) (4,596) 9,029 3,622 (184) (2,262) 2,921 15,416
Units withdrawn, surrendered, and annuitized (29,522) (21,865) (8,132) (9,301) (11,148) (6,534) (15,164) (20,580)
------- ------- ------- ------- ------- ------ ------- -------
Units Outstanding End of Year 349,564 339,067 72,199 67,394 54,240 60,336 47,556 51,357
======= ======= ======= ======= ======= ====== ======= =======
<CAPTION>
MSS TRS GGS
Sub-Account Sub-Account Sub-Account
----------------- ----------------- ---------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
-------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units Outstanding Beginning of Year 113,778 100,687 296,455 281,915 35,645 42,551
Units purchased 14,017 29,949 21,166 51,882 3,228 5,735
Units transferred between Sub-Accounts and Fixed
Account (3,273) (2,112) (6,116) (2,829) (3,048) (7,056)
Units withdrawn, surrendered, and annuitized (12,397) (14,746) (25,230) (34,513) (2,393) (5,585)
------- ------- ------- ------- ------- ------
Units Outstanding End of Year 112,125 113,778 286,275 296,455 33,432 35,645
======= ======= ======= ======= ======= ======
</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
December 31, 1999, the related statement of operations for the year then ended
and the statements of changes in net assets for the years ended December 31,
1999 and December 31, 1998. 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 at December 31, 1999 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 December 31, 1999,
the results of their operations and the changes in their net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 10, 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, President and Director
JAMES A. McNULTY, III, Senior Vice
President
[LOGO]PROFESSIONALLY MANAGED COMBINATION
and General Manager and Director
FIXED/VARIABLE ANNUITIES
S. CAESAR RABOY, Director
FOR PERSONAL INVESTMENTS AND
RICHARD B. BAILEY,
Director
QUALIFIED RETIREMENT PLANS
------------------------------------------------
M. COLYER CRUM, Director
ANNUAL REPORT, DECEMBER 31, 1999
DAVID D. HORN, Director
JOHN G. IRELAND, Director
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
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
JAMES M. A. ANDERSON, Vice President,
Investments
[LOGO]
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
RENY2-2/00 4M SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
