<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, Mass. 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, Mass. 02110
[REGATTA N.Y. LOGO]
SEMI-ANNUAL REPORT, JUNE 30, 1995
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.
PROFESSIONALLY MANAGED ANNUITY ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY
OF NEW YORK
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- June 30, 1995
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life
Series Trust: Shares Cost Value
--------- ----------- -----------
<S> <C> <C> <C>
Capital Appreciation Series
("CAS")....................... 361,376 $ 9,384,421 $10,290,322
Conservative Growth Series
("CGS")....................... 265,463 4,536,566 5,021,399
Government Securities Series
("GSS")....................... 412,281 5,122,433 5,189,511
High Yield Series ("HYS")...... 303,093 2,488,572 2,544,101
Managed Sectors Series
("MSS")....................... 108,657 2,318,979 2,553,867
Money Market Series ("MMS").... 6,367,253 6,367,253 6,367,253
Total Return Series ("TRS").... 835,755 13,170,079 13,859,800
Utilities Series ("UTS")....... 27,070 266,466 281,801
World Governments Series
("WGS")....................... 236,232 2,829,252 2,868,190
World Growth Series ("WGO").... 89,431 978,610 1,001,923
----------- -----------
$47,462,631 $49,978,167
-----------
-----------
LIABILITY:
Payable to sponsor 23,556
-----------
Net Assets................. $49,954,611
-----------
-----------
</TABLE>
<TABLE>
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C>
Applicable to Owners of
Deferred Variable Annuity Contracts: Reserve for
------------------------------------ Variable
Units Unit Value Value Annuities Total
--------- ----------- ----------- ----------- -----------
CAS................................................... 811,894 $ 12.6292 $10,255,314 $ 9,742 $10,265,056
CGS................................................... 430,563 11.6095 4,998,180 -- 4,998,180
GSS................................................... 470,819 10.9764 5,167,557 -- 5,167,557
HYS................................................... 219,267 11.4753 2,524,398 -- 2,524,398
MSS................................................... 198,596 12.7315 2,528,404 -- 2,528,404
MMS................................................... 602,974 10.5279 6,346,197 -- 6,346,197
TRS................................................... 1,149,002 11.5260 13,242,266 570,944 13,813,210
UTS................................................... 26,066 10.8107 281,801 -- 281,801
WGS................................................... 238,746 11.8672 2,835,524 8,921 2,844,445
WGO................................................... 99,926 10.0248 1,001,923 -- 1,001,923
----------- ----------- -----------
$49,181,564 $589,607 $49,771,171
Net Assets Applicable to Sponsor.............................................. 183,440 -- 183,440
----------- ----------- -----------
Net Assets................................................................ $49,365,004 $589,607 $49,954,611
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS-- Six Months Ended June 30, 1995
<TABLE>
<CAPTION>
CAS CGS GSS HYS MSS MMS
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.......... $ 224,481 $111,440 $ 322,630 $ 213,861 $ 71,905 $ 113,248
Mortality and expense risk
charges......................... 51,487 25,552 35,052 20,700 12,870 26,099
Administrative charges........... 6,179 3,066 4,206 2,484 1,544 3,132
------------ ----------- ------------ ------------ ----------- ------------
Net investment income........ $ 166,815 $ 82,822 $ 283,372 $ 190,677 $ 57,491 $ 84,017
------------ ----------- ------------ ------------ ----------- ------------
------------ ----------- ------------ ------------ ----------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 857,612 $230,388 $ 2,175,009 $ 1,615,716 $121,230 $ 3,957,662
Cost of investments sold....... 907,817 212,350 2,279,930 1,555,053 127,552 3,957,662
------------ ----------- ------------ ------------ ----------- ------------
Net realized gains
(losses).................... $ (50,205) $ 18,038 $ (104,921) $ 60,663 $ (6,322) $ --
------------ ----------- ------------ ------------ ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 905,902 $484,833 $ 67,078 $ 55,529 $234,888 $ --
Beginning of period............ (444,059) (63,065) (280,915) 2,634 (115,855) --
------------ ----------- ------------ ------------ ----------- ------------
Change in unrealized
appreciation................ $ 1,349,961 $547,898 $ 347,993 $ 52,895 $350,743 $ --
------------ ----------- ------------ ------------ ----------- ------------
Realized and unrealized
gains..................... $ 1,299,756 $565,936 $ 243,072 $ 113,558 $344,421 $ --
------------ ----------- ------------ ------------ ----------- ------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................ $ 1,466,571 $648,758 $ 526,444 $ 304,235 $401,912 $ 84,017
------------ ----------- ------------ ------------ ----------- ------------
------------ ----------- ------------ ------------ ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
TRS UTS WGS WGO
Sub-Account Sub-Account Sub-Account Sub-Account Total
------------ ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital gain
distributions received.......... $ 495,868 $ 5,187 $ 145,916 $ 22,994 $ 1,727,530
Mortality and expense risk
charges......................... 73,970 968 17,028 3,937 267,663
Administrative charges........... 8,876 116 2,043 472 32,118
------------ ----------- ----------- ----------- ------------
Net investment income........ $ 413,022 $ 4,103 $ 126,845 $ 18,585 $ 1,427,749
------------ ----------- ----------- ----------- ------------
------------ ----------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales............ $ 755,915 $ 18,000 $ 223,268 $ 69,665 $ 10,024,465
Cost of investments sold....... 749,166 17,047 242,171 73,234 10,121,982
------------ ----------- ----------- ----------- ------------
Net realized gains
(losses).................... $ 6,749 $ 953 $ (18,903) $ (3,569) $ (97,517)
------------ ----------- ----------- ----------- ------------
Net unrealized appreciation
(depreciation) on investments:
End of period.................. $ 689,720 $ 15,335 $ 38,938 $ 23,313 $ 2,515,536
Beginning of period............ (488,155) (16) (156,082) (9,029) (1,554,542)
------------ ----------- ----------- ----------- ------------
Change in unrealized
appreciation................ $ 1,177,875 $ 15,351 $ 195,020 $ 32,342 $ 4,070,078
------------ ----------- ----------- ----------- ------------
Realized and unrealized
gains..................... $ 1,184,624 $ 16,304 $ 176,117 $ 28,773 $ 3,972,561
------------ ----------- ----------- ----------- ------------
INCREASE IN NET ASSETS FROM
OPERATIONS........................ $ 1,597,646 $ 20,407 $ 302,962 $ 47,358 $ 5,400,310
------------ ----------- ----------- ----------- ------------
------------ ----------- ----------- ----------- ------------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CGS GSS
CAS Sub-Account Sub-Account HYS
Sub-Account -------------------------- ------------------------- Sub-Account
---------------------------- Six Months Six Months --------------
Six Months Year Ended Ended Year Ended Ended Year Ended Six Months
Ended December 31, June 30, December 31, June 30, December Ended
June 30, 1995 1994 1995 1994 1995 31, 1994 June 30, 1995
------------- ------------- ------------ ------------ ------------ ----------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income........... $ 166,815 $ 433,150 $ 82,822 $ 571 $ 283,372 $ 211,106 $ 190,677
Net realized gains
(losses)......... (50,205) (53,721) 18,038 8,292 (104,921) (37,180) 60,663
Net unrealized
gains (losses)... 1,349,961 (639,647) 547,898 (86,740) 347,993 (317,514) 52,895
------------- ------------- ------------ ------------ ------------ ----------- --------------
Increase
(decrease) in
net assets
from
operations... $ 1,466,571 $ (260,218) $ 648,758 $ (77,877) $ 526,444 $ (143,588) $ 304,235
------------- ------------- ------------ ------------ ------------ ----------- --------------
CONTRACT OWNER
TRANSACTIONS:
Accumulation
Activity:
Purchase
payments
received....... $ 1,648,771 $ 3,333,263 $ 903,400 $1,764,910 $ 612,302 $1,830,983 $ 182,297
Net transfers
between Sub-
Accounts
and Fixed
Account........ 899,091 (1,194,320) 163,870 401,697 (2,010,125) 876,341 159,009
Withdrawals,
surrenders,
annuitizations
and account
fees........... (198,583) (145,010) (107,150) (57,330) (76,460) (167,944) (1,602,368)
------------- ------------- ------------ ------------ ------------ ----------- --------------
Net
accumulation
activity..... $ 2,349,279 $ 1,993,933 $ 960,120 $2,109,277 $(1,474,283) $2,539,380 $(1,261,062)
------------- ------------- ------------ ------------ ------------ ----------- --------------
Annuitization
Activity:
Annuitizations... $ -- $ 9,700 $ -- $ -- $ -- $ -- $ --
Annuity payments
and account
fees........... (1,152) ( 535) -- -- -- -- --
Adjustments to
annuity
reserve........ (67) 59 -- -- -- -- --
------------- ------------- ------------ ------------ ------------ ----------- --------------
Net
annuitization
activity..... $ (1,219) $ 9,224 $ -- $ -- $ -- $ -- $ --
------------- ------------- ------------ ------------ ------------ ----------- --------------
Increase
(decrease) in net
assets from
contract owner
transactions..... $ 2,348,060 $ 2,003,157 $ 960,120 $2,109,277 $(1,474,283) $2,539,380 $(1,261,062)
------------- ------------- ------------ ------------ ------------ ----------- --------------
Increase
(decrease) in
net assets..... $ 3,814,631 $ 1,742,939 $1,608,878 $2,031,400 $ (947,839) $2,395,792 $ (956,827)
NET ASSETS:
Beginning of
period........... 6,475,684 4,732,745 3,412,521 1,381,121 6,137,350 3,741,558 3,500,928
------------- ------------- ------------ ------------ ------------ ----------- --------------
End of period..... $10,290,315 $ 6,475,684 $5,021,399 $3,412,521 $ 5,189,511 $6,137,350 $ 2,544,101
------------- ------------- ------------ ------------ ------------ ----------- --------------
------------- ------------- ------------ ------------ ------------ ----------- --------------
<CAPTION>
Year Ended
December 31,
1994
-------------
<S> <C>
OPERATIONS:
Net investment
income........... $ 16,020
Net realized gains
(losses)......... (23,468)
Net unrealized
gains (losses)... (36,679)
-------------
Increase
(decrease) in
net assets
from
operations... $ (44,127)
-------------
CONTRACT OWNER
TRANSACTIONS:
Accumulation
Activity:
Purchase
payments
received....... $1,981,987
Net transfers
between Sub-
Accounts
and Fixed
Account........ 162,539
Withdrawals,
surrenders,
annuitizations
and account
fees........... (592,296)
-------------
Net
accumulation
activity..... $1,552,230
-------------
Annuitization
Activity:
Annuitizations... $ --
Annuity payments
and account
fees........... --
Adjustments to
annuity
reserve........ --
-------------
Net
annuitization
activity..... $ --
-------------
Increase
(decrease) in net
assets from
contract owner
transactions..... $1,552,230
-------------
Increase
(decrease) in
net assets..... $1,508,103
NET ASSETS:
Beginning of
period........... 1,992,825
-------------
End of period..... $3,500,928
-------------
-------------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
MSS TRS
Sub-Account MMS Sub-Account UTS
-------------------------- Sub-Account -------------------------- Sub-Account
Six Months ---------------------------- Six Months -------------
Ended Year Ended Six Months Year Ended Ended Year Ended Six Months
June 30, December 31, Ended December 31, June 30, December 31, Ended
1995 1994 June 30, 1995 1994 1995 1994 June 30, 1995
------------ ------------ ------------- ------------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income
(expense)........ $ 57,491 $ 106,490 $ 84,017 $ 91,209 $ 413,022 $ 235,767 $ 4,103
Net realized gains
(losses)......... (6,322) (11,801) -- -- 6,749 (4,636) 953
Net unrealized
gains (losses)... 350,743 (127,017) -- -- 1,177,875 (590,260) 15,351
------------ ------------ ------------- ------------- ------------ ------------ -------------
Increase
(decrease) in
net assets
from
operations... $ 401,912 $ (32,328) $ 84,017 $ 91,209 $ 1,597,646 $ (359,129) $ 20,407
------------ ------------ ------------- ------------- ------------ ------------ -------------
CONTRACT OWNER
TRANSACTIONS:
Accumulation
Activity:
Purchase
payments
received....... $ 413,233 $ 889,420 $ 3,794,680 $ 6,306,719 $ 1,086,644 $ 5,146,982 $142,422
Net transfers
between Sub-
Accounts
and Fixed
Account........ 197,990 64,070 (1,700,235) (3,706,476) 89,355 565,870 60,583
Withdrawals,
surrenders,
annuitizations
and account
fees........... (33,855) (33,375) (45,907) (286,328) (247,780) (790,391) (717)
------------ ------------ ------------- ------------- ------------ ------------ -------------
Net
accumulation
activity..... $ 577,368 $ 920,115 $ 2,048,538 $ 2,313,915 $ 928,219 $ 4,922,461 $202,288
------------ ------------ ------------- ------------- ------------ ------------ -------------
Annuitization
Activity:
Annuitizations... $ -- $ -- $ -- $ -- $ -- $ 574,554 $--
Annuity payments
and account
fees........... -- -- -- -- (25,571) (33,619) --
Adjustments to
annuity
reserve........ -- -- -- -- (5,859) (17,678) --
------------ ------------ ------------- ------------- ------------ ------------ -------------
Net
annuitization
activity..... $ -- $ -- $ -- $ -- $ (31,430) $ 523,257 $--
------------ ------------ ------------- ------------- ------------ ------------ -------------
Increase in net
assets from
contract owner
transactions..... $ 577,368 $ 920,115 $ 2,048,538 $ 2,313,915 $ 896,789 $ 5,445,718 $202,288
------------ ------------ ------------- ------------- ------------ ------------ -------------
Increase in net
assets......... $ 979,280 $ 887,787 $ 2,132,555 $ 2,405,124 $ 2,494,435 $ 5,086,589 $222,695
NET ASSETS:
Beginning of
period........... 1,574,587 686,800 4,234,698 1,829,574 11,341,827 6,255,238 59,106
------------ ------------ ------------- ------------- ------------ ------------ -------------
End of period..... $2,553,867 $1,574,587 $ 6,367,253 $ 4,234,698 $13,836,262 $ 11,341,827 $281,801
------------ ------------ ------------- ------------- ------------ ------------ -------------
------------ ------------ ------------- ------------- ------------ ------------ -------------
<CAPTION>
Year Ended
December 31,
1994
------------
<S> <C>
OPERATIONS:
Net investment
income
(expense)........ $ (126)
Net realized gains
(losses)......... (2)
Net unrealized
gains (losses)... (16)
------------
Increase
(decrease) in
net assets
from
operations... $ (144)
------------
CONTRACT OWNER
TRANSACTIONS:
Accumulation
Activity:
Purchase
payments
received....... $59,250
Net transfers
between Sub-
Accounts
and Fixed
Account........ --
Withdrawals,
surrenders,
annuitizations
and account
fees........... --
------------
Net
accumulation
activity..... $59,250
------------
Annuitization
Activity:
Annuitizations... $--
Annuity payments
and account
fees........... --
Adjustments to
annuity
reserve........ --
------------
Net
annuitization
activity..... $--
------------
Increase in net
assets from
contract owner
transactions..... $59,250
------------
Increase in net
assets......... $59,106
NET ASSETS:
Beginning of
period........... --
------------
End of period..... $59,106
------------
------------
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS-- continued
<TABLE>
<CAPTION>
WGS WGO
Sub-Account Sub-Account Total
-------------------------- -------------------------- --------------------------
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,
1995 1994 1995 1994 1995 1994
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income
(expense)........ $ 126,845 $ 140,277 $ 18,585 $ (674) $ 1,427,749 $ 1,233,790
Net realized
losses........... (18,903) (46,585) (3,569) (183) (97,517) (169,284)
Net unrealized
gains (losses)... 195,020 (185,295) 32,342 (9,029) 4,070,078 (1,992,197)
------------ ------------ ------------ ------------ ------------ ------------
Increase
(decrease) in
net assets
from
operations... $ 302,962 $ (91,603) $ 47,358 $ (9,886) $ 5,400,310 $ (927,691)
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNER
TRANSACTIONS:
Accumulation
Activity:
Purchase
payments
received....... $ 61,208 $1,163,925 $ 324,109 $ 134,195 $ 9,169,066 $ 22,611,634
Net transfers
between
Sub-Accounts
and Fixed
Account........ 27,648 (29,717) 314,740 212,427 (1,798,074) (2,647,569)
Withdrawals,
surrenders,
annuitizations
and account
fees........... (88,764) (55,014) (20,967) (53) (2,422,551) (2,127,741)
------------ ------------ ------------ ------------ ------------ ------------
Net
accumulation
activity..... $ 92 $1,079,194 $ 617,882 $ 346,569 $ 4,948,441 $ 17,836,324
------------ ------------ ------------ ------------ ------------ ------------
Annuitization
Activity:
Annuitizations... $ -- $ 9,467 $ -- $ -- $ -- $ 593,721
Annuity payments
and account
fees........... (1,105) (522) -- -- (27,828) (34,676)
Adjustments to
annuity
reserve........ (59) 48 -- -- (5,985) (17,571)
------------ ------------ ------------ ------------ ------------ ------------
Net
annuitization
activity..... $ (1,164) $ 8,993 $ -- $ -- $ (33,813) $ 541,474
------------ ------------ ------------ ------------ ------------ ------------
Increase
(decrease) in net
assets from
contract owner
transactions..... $ (1,072) $1,088,187 $ 617,882 $ 346,569 $ 4,914,628 $ 18,377,798
------------ ------------ ------------ ------------ ------------ ------------
Increase in net
assets......... $ 301,890 $ 996,584 $ 665,240 $ 336,683 $10,314,938 $ 17,450,107
NET ASSETS:
Beginning of
period........... 2,566,289 1,569,705 336,683 -- 39,639,673 22,189,566
------------ ------------ ------------ ------------ ------------ ------------
End of period..... $2,868,179 $2,566,289 $1,001,923 $ 336,683 $49,954,611 $ 39,639,673
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION
Sun Life (N.Y.) Variable Account C (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 October 18, 1985 as a funding vehicle for the variable portion of
certain individual combination fixed/variable annuity contracts. Sale of the
contracts commenced on April 1, 1993. 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 wholly-owned
subsidiary of Sun Life Assurance Company of Canada (U.S.), is investment adviser
to the Series Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
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 Sponsor. These deductions are
transferred periodically to the Sponsor. Currently, the deduction is at an
effective annual rate of 1.25%.
Each year on the contract anniversary, an account administration fee ("Account
Fee") of $30 is deducted from each contract's accumulation account. After the
annuity commencement date the Account Fee is deducted pro rata from each
variable annuity payment made during the year. In addition, a deduction is made
from the Variable Account at the end of each valuation period (during both the
accumulation period and after annuity payments begin) at an effective annual
rate of 0.15% of the daily net assets of the Variable Account. These charges are
paid to the Sponsor to reimburse it for administrative expenses which exceed the
revenues received from the Account Fee.
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
The Sponsor does not deduct a sales charge from the purchase payment. However, a
withdrawal charge (contingent deferred sales charge) of up to 6% of certain
amounts withdrawn, when applicable, will be deducted to cover certain expenses
relating to the sale of the contracts. In no event shall the aggregate
withdrawal charges assessed against a contract exceed 9% of the purchase
payment.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4%. Required adjustments to the reserves
are accomplished by transfers to or from the Sponsor.
(5) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
CAS CGS GSS HYS
Sub-Account Sub-Account Sub-Account Sub-Account
--------------------------- --------------------------- --------------------------- ------------
Six Months Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended
June 30, Dec. 31, June 30, Dec. 31, June 30, Dec. 31, June 30,
1995 1994 1995 1994 1995 1994 1995
------------ ------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding
beginning of
period............. 606,673 421,509 342,664 134,044 612,070 359,235 331,677
Units purchased... 142,469 308,485 82,440 176,149 57,318 182,365 16,333
Units transferred
between Sub-
Accounts
and Fixed
Account.......... 80,191 (108,776) 15,316 39,537 (191,200) 87,835 15,063
Units withdrawn,
surrendered and
annuitized....... (17,439) (14,545) (9,857) (7,066) (7,369) (17,365) (143,806)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Units outstanding
end of period...... 811,894 606,673 430,563 342,664 470,819 612,070 219,267
------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------
<CAPTION>
Year Ended
Dec. 31,
1994
------------
<S> <C>
Units outstanding
beginning of
period............. 181,341
Units purchased... 182,903
Units transferred
between Sub-
Accounts
and Fixed
Account.......... 24,035
Units withdrawn,
surrendered and
annuitized....... (56,602)
------------
Units outstanding
end of period...... 331,677
------------
------------
</TABLE>
<TABLE>
<CAPTION>
MSS MMS UTS
Sub-Account Sub-Account TRS Sub-Account
--------------------------- --------------------------- Sub-Account ------------
Six Months Six Months ----------------------------- Six Months
Ended Year Ended Ended Year Ended Six Months Ended
June 30, Dec. 31, June 30, Dec. 31, Ended Year Ended June 30,
1995 1994 1995 1994 June 30, 1995 Dec. 31, 1994 1995
------------ ------------ ------------ ------------ ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding
beginning of
period............. 148,048 61,302 408,469 179,323 1,063,839 592,068 6,103
Units purchased... 35,958 84,515 362,591 632,853 100,017 497,828 13,955
Units transferred
between Sub-
Accounts and
Fixed Account.... 17,436 6,118 (163,681) (363,042) 8,642 54,207 6,076
Units withdrawn,
surrendered and
annuitized....... (2,846) (3,887) (4,405) (40,665) (23,496) (80,264) (68)
------------ ------------ ------------ ------------ ------------- ------------- ------
Units outstanding
end of period...... 198,596 148,048 602,974 408,469 1,149,002 1,063,839 26,066
------------ ------------ ------------ ------------ ------------- ------------- ------
------------ ------------ ------------ ------------ ------------- ------------- ------
<CAPTION>
Year Ended
Dec. 31, 1994
-------------
<S> <C>
Units outstanding
beginning of
period............. --
Units purchased... 6,103
Units transferred
between Sub-
Accounts and
Fixed Account.... --
Units withdrawn,
surrendered and
annuitized....... --
-----
Units outstanding
end of period...... 6,103
-----
-----
</TABLE>
<TABLE>
<CAPTION>
WGS WGO
Sub-Account Sub-Account
--------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, Dec. 31, June 30, Dec. 31,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Units outstanding beginning of
period............................ 238,927 137,181 35,096 --
Units purchased.................. 5,314 111,248 33,972 13,786
Units transferred between
Sub-Accounts and Fixed
Account......................... 2,726 (2,702) 33,151 21,315
Units withdrawn, surrendered and
annuitized...................... (8,221) (6,800) (2,293) (5)
------------ ------------ ------ ------
Units outstanding end of period.... 238,746 238,927 99,926 35,096
------------ ------------ ------ ------
------------ ------------ ------ ------
</TABLE>
7
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners participating in Sun Life (N.Y.) Variable Account C
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 C (the "Variable Account") as of June 30, 1995, the related
statement 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, 1994. 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 with the custodian of securities held for the Variable Account as
of June 30, 1995. 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, 1995,
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 4, 1995
9
