<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- June 30, 1997
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
---------- ------------ ------------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS")....................................... 816,689 $ 26,810,635 $ 30,695,203
Conservative Growth Series ("CGS")........................................ 959,109 23,201,095 28,668,520
Emerging Growth Series ("EGS")............................................ 460,714 7,004,293 7,515,593
MFS/Foreign & Colonial International Growth Series ("FCG")................ 107,779 1,138,924 1,197,852
Government Securities Series ("GSS")...................................... 748,388 9,466,986 9,208,817
High Yield Series ("HYS")................................................. 861,205 7,774,570 7,838,833
Managed Sectors Series ("MSS")............................................ 291,238 7,200,038 7,681,279
Money Market Series ("MMS")............................................... 9,429,277 9,429,277 9,429,277
Research Equity Series ("RES")............................................ 595,284 9,979,488 10,852,835
Total Return Series ("TRS")............................................... 1,720,795 30,418,825 33,731,590
Utilities Series ("UTS").................................................. 226,356 2,926,474 3,148,692
World Asset Allocation Series ("WAA")..................................... 123,177 1,728,659 1,761,442
World Governments Series ("WGS").......................................... 400,758 4,569,793 4,256,327
World Growth Series ("WGO")............................................... 553,598 7,080,935 8,037,987
World Total Return Series ("WTR")......................................... 73,720 982,224 1,029,079
---------- ------------ ------------
17,368,087 $149,712,216 $165,053,326
---------- ------------
---------- ------------
LIABILITY:
Payable to sponsor........................................................ 56,281
------------
Net Assets............................................................ $164,997,045
------------
------------
</TABLE>
<TABLE>
<CAPTION>
NET ASSETS:
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts: for
------------------------------------ Variable
Units Unit Value Value Annuities Total
--------- ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
Regatta-NY Contracts:
CAS................................................. 1,119,152 $ 19.3265 $ 21,631,726 $ 154,592 $ 21,786,318
CGS................................................. 817,741 19.6101 16,034,575 78,474 16,113,049
GSS................................................. 678,758 11.8414 8,037,184 7,879 8,045,063
HYS................................................. 367,985 14.1156 5,206,360 -- 5,206,360
MSS................................................. 314,519 17.9132 5,634,075 -- 5,634,075
MMS................................................. 553,480 11.2980 6,250,054 1,966 6,252,020
TRS................................................. 1,505,711 15.8988 23,935,353 659,679 24,595,032
UTS................................................. 106,037 16.7676 1,778,363 -- 1,778,363
WGS................................................. 307,146 12.2063 3,751,326 4,667 3,755,993
WGO................................................. 406,918 13.8554 5,638,595 -- 5,638,595
------------ ---------- ------------
$ 97,897,611 $ 907,257 $ 98,804,868
------------ ---------- ------------
Regatta Gold-NY Contracts:
CAS................................................. 692,783 $ 12.8478 $ 8,900,997 $ -- $ 8,900,997
CGS................................................. 927,662 13.2676 12,300,742 243,493 12,544,235
EGS................................................. 649,339 11.5746 7,515,592 -- 7,515,592
FCG................................................. 111,528 10.7405 1,197,853 -- 1,197,853
GSS................................................. 111,629 10.4234 1,163,496 -- 1,163,496
HYS................................................. 235,263 11.1607 2,632,473 -- 2,632,473
MSS................................................. 159,833 12.8084 2,047,204 -- 2,047,204
MMS................................................. 308,625 10.2959 3,177,194 -- 3,177,194
RES................................................. 866,137 12.5278 10,852,835 -- 10,852,835
TRS................................................. 759,447 11.9869 9,099,926 -- 9,099,926
UTS................................................. 108,625 12.5044 1,370,330 -- 1,370,330
WAA................................................. 152,650 11.5394 1,761,442 -- 1,761,442
WGS................................................. 50,030 9.9929 500,130 -- 500,130
WGO................................................. 203,355 11.7994 2,399,392 -- 2,399,392
WTR................................................. 90,406 11.3827 1,029,078 -- 1,029,078
------------ ---------- ------------
$ 65,948,684 $ 243,493 $ 66,192,177
------------ ---------- ------------
Net Assets.............................................................. $163,846,295 $1,150,750 $164,997,045
------------ ---------- ------------
------------ ---------- ------------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF OPERATIONS-- Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
CAS CGS EGS FCG GSS HYS MSS MMS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and
capital gain
distributions
received.............. $2,541,693 $1,238,772 $ 27,866 $12,324 $ 614,037 $ 493,671 $817,957 $ 245,885
Mortality and expense
risk charges.......... 163,605 135,484 33,747 5,416 54,448 40,569 41,845 62,724
Administrative
charges............... 19,633 16,258 4,050 650 6,534 4,868 5,022 7,527
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
Net investment income
(expense)........... $2,358,455 $1,087,030 $ (9,931) $ 6,258 $ 553,055 $ 448,234 $771,090 $ 175,634
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains (losses)
on investment
transactions:
Proceeds from
sales............... $2,220,758 $2,059,340 $835,193 $56,272 $1,484,574 $1,771,519 $544,414 $8,922,298
Cost of investments
sold................ 1,588,053 1,411,379 785,145 55,519 1,464,208 1,688,505 433,826 8,922,298
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
Net realized
gains............. $ 632,705 $ 647,961 $ 50,048 $ 753 $ 20,366 $ 83,014 $110,588 $ --
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
Net unrealized
appreciation
(depreciation) on
investments:
End of period........ $3,884,568 $5,467,425 $511,300 $58,928 $ (258,169) $ 64,263 $481,241 $ --
Beginning of
period.............. 3,141,305 3,353,456 (39,969) 3,206 134,986 223,152 513,054 --
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
Change in
unrealized
appreciation
(depreciation).... $ 743,263 $2,113,969 $551,269 $55,722 $ (393,155) $ (158,889) $(31,813) $ --
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
Realized and
unrealized gains
(losses)........ $1,375,968 $2,761,930 $601,317 $56,475 $ (372,789) $ (75,875) $ 78,775 $ --
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
INCREASE IN NET ASSETS
FROM OPERATIONS......... $3,734,423 $3,848,960 $591,386 $62,733 $ 180,266 $ 372,359 $849,865 $ 175,634
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
----------- ----------- ----------- ---------- ----------- ----------- --------- ----------
</TABLE>
<TABLE>
<CAPTION>
RES TRS UTS WAA WGS WGO WTR
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Total
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and
capital gain
distributions
received.............. $ 250,661 $3,176,697 $325,601 $ 73,415 $ 171,157 $ 163,398 $ 15,895 $10,169,029
Mortality and expense
risk charges.......... 44,288 180,364 15,691 7,532 26,465 41,432 3,516 857,126
Administrative
charges............... 5,315 21,644 1,883 904 3,176 4,972 422 102,858
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net investment
income............ $ 201,058 $2,974,689 $308,027 $ 64,979 $ 141,516 $ 116,994 $ 11,957 $ 9,209,045
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains (losses)
on investment
transactions:
Proceeds from
sales............... $ 578,141 $2,494,754 $595,748 $270,642 $ 345,163 $ 579,733 $ 49,696 $22,808,245
Cost of investments
sold................ 509,736 2,122,595 517,848 257,412 387,976 511,380 45,976 20,701,856
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net realized gains
(losses).......... $ 68,405 $ 372,159 $ 77,900 $ 13,230 $ (42,813) $ 68,353 $ 3,720 $ 2,106,389
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation)
on investments:
End of period........ $ 873,347 $3,312,765 $222,218 $ 32,783 $ (313,466) $ 957,052 $ 46,855 $15,341,110
Beginning of
period.............. 163,568 3,374,017 299,360 12,514 (106,483) 248,671 9,927 11,330,764
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Change in
unrealized
appreciation
(depreciation).... $ 709,779 $ (61,252) $(77,142) $ 20,269 $ (206,983) $ 708,381 $ 36,928 $ 4,010,346
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Realized and
unrealized gains
(losses)........ $ 778,184 $ 310,907 $ 758 $ 33,499 $ (249,796) $ 776,734 $ 40,648 $ 6,116,735
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS.............. $ 979,242 $3,285,596 $308,785 $ 98,478 $ (108,280) $ 893,728 $ 52,605 $15,325,780
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS CGS EGS
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,
1997 1996 1997 1996 1997 1996*
----------- ------------ ------------ ------------ ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 2,358,455 $ 1,236,544 $ 1,087,030 $ 283,282 $ (9,931) $ (9,735)
Net realized gains.......... 632,705 1,402,219 647,961 686,556 50,048 18,739
Net unrealized gains
(losses)................... 743,263 955,359 2,113,969 1,857,593 551,269 (39,969)
----------- ------------ ------------ ------------ ----------- ------------
Increase (decrease) in
net assets from
operations............. $ 3,734,423 $ 3,594,122 $ 3,848,960 $ 2,827,431 $ 591,386 $ (30,965)
----------- ------------ ------------ ------------ ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 2,877,235 $ 8,660,397 $ 5,757,415 $ 6,950,910 $ 2,827,028 $3,404,586
Net transfers between
Sub-Accounts and Fixed
Account.................. 808,627 (759,828) 1,744,336 873,302 715,415 178,813
Withdrawals, surrenders,
annuitizations and
contract charges......... (990,704) (2,973,326) (966,403) (1,720,406) (155,835) (14,836)
----------- ------------ ------------ ------------ ----------- ------------
Net accumulation
activity............... $ 2,695,158 $ 4,927,243 $ 6,535,348 $ 6,103,806 $ 3,386,608 $3,568,563
----------- ------------ ------------ ------------ ----------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ 136,803 $ 251,244 $ 68,588 $ -- $ --
Annuity payments and
contract charges......... (14,758) (18,380) (3,825) (5,921) -- --
Adjustments to annuity
reserve.................. (1,406) (6,355) (8,183) (3,052) -- --
----------- ------------ ------------ ------------ ----------- ------------
Net annuitization
activity............... $ (16,164) $ 112,068 $ 239,236 $ 59,615 $ -- $ --
----------- ------------ ------------ ------------ ----------- ------------
Increase in net assets from
contract owner
transactions............... $ 2,678,994 $ 5,039,311 $ 6,774,584 $ 6,163,421 $ 3,386,608 $3,568,563
----------- ------------ ------------ ------------ ----------- ------------
Increase in net assets.... $ 6,413,417 $ 8,633,433 $ 10,623,544 $ 8,990,852 $ 3,977,994 $3,537,598
NET ASSETS:
Beginning of period......... 24,273,898 15,640,465 18,033,740 9,042,888 3,537,598 --
----------- ------------ ------------ ------------ ----------- ------------
End of period............... $30,687,315 $24,273,898 $ 28,657,284 $18,033,740 $ 7,515,592 $3,537,598
----------- ------------ ------------ ------------ ----------- ------------
----------- ------------ ------------ ------------ ----------- ------------
<CAPTION>
FCG
Sub-Account
--------------------------
Six Months
Ended Year Ended
June 30, December 31,
1997 1996*
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 6,258 $ (1,435)
Net realized gains.......... 753 711
Net unrealized gains
(losses)................... 55,722 3,206
----------- ------------
Increase (decrease) in
net assets from
operations............. $ 62,733 $ 2,482
----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 410,245 $535,282
Net transfers between
Sub-Accounts and Fixed
Account.................. 154,703 49,397
Withdrawals, surrenders,
annuitizations and
contract charges......... (5,550) (11,439)
----------- ------------
Net accumulation
activity............... $ 559,398 $573,240
----------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ --
Annuity payments and
contract charges......... -- --
Adjustments to annuity
reserve.................. -- --
----------- ------------
Net annuitization
activity............... $ -- $ --
----------- ------------
Increase in net assets from
contract owner
transactions............... $ 559,398 $573,240
----------- ------------
Increase in net assets.... $ 622,131 $575,722
NET ASSETS:
Beginning of period......... 575,722 --
----------- ------------
End of period............... $ 1,197,853 $575,722
----------- ------------
----------- ------------
</TABLE>
*For the period August 13, 1996 (commencement of operations) to December 31,
1996
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS
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,
1997 1996 1997 1996 1997 1996
----------- ------------ ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 553,055 $ 355,589 $ 448,234 $ 274,052 $ 771,090 $ 492,034
Net realized gains.......... 20,366 39,886 83,014 229,055 110,588 193,953
Net unrealized gains
(losses)................... (393,155) (320,489) (158,889) (13,435) (31,813) 71,876
----------- ------------ ----------- ------------ ----------- -------------
Increase in net assets
from operations........ $ 180,266 $ 74,986 $ 372,359 $ 489,672 $ 849,865 $ 757,863
----------- ------------ ----------- ------------ ----------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 687,626 $1,551,889 $ 919,958 $2,175,861 $ 518,192 $ 2,103,015
Net transfers between Sub-
Accounts and Fixed
Account.................. 525,035 606,593 729,721 (46,281) 309,999 734,538
Withdrawals, surrenders,
annuitizations and
contract charges......... (226,621) (655,818) (139,964) (738,718) (255,698) (1,157,372)
----------- ------------ ----------- ------------ ----------- -------------
Net accumulation
activity............... $ 986,040 $1,502,664 $1,509,715 $1,390,862 $ 572,493 $ 1,680,181
----------- ------------ ----------- ------------ ----------- -------------
Annuitization Activity:
Annuitizations............ $ -- $ -- $ -- $ -- $ -- $ --
Annuity payments and
contract charges......... (1,282) (2,581) -- -- -- --
Adjustments to annuity
reserve.................. (63) (152) -- -- -- --
----------- ------------ ----------- ------------ ----------- -------------
Net annuitization
activity............... $ (1,345) $ (2,733) $ -- $ -- $ -- $ --
----------- ------------ ----------- ------------ ----------- -------------
Increase (decrease) in net
assets from contract owner
transactions............... $ 984,695 $1,499,931 $1,509,715 $1,390,862 $ 572,493 $ 1,680,181
----------- ------------ ----------- ------------ ----------- -------------
Increase in net assets.... $1,164,961 $1,574,917 $1,882,074 $1,880,534 $1,422,358 $ 2,438,044
NET ASSETS:
Beginning of period......... 8,043,598 6,468,681 5,956,759 4,076,225 6,258,921 3,820,877
----------- ------------ ----------- ------------ ----------- -------------
End of period............... $9,208,559 $8,043,598 $7,838,833 $5,956,759 $7,681,279 $ 6,258,921
----------- ------------ ----------- ------------ ----------- -------------
----------- ------------ ----------- ------------ ----------- -------------
<CAPTION>
MMS
Sub-Account
----------------------------
Six Months
Ended Year Ended
June 30, December 31,
1997 1996
------------ -------------
<S> <C> <C>
OPERATIONS:
Net investment income....... $ 175,634 $ 247,368
Net realized gains.......... -- --
Net unrealized gains
(losses)................... -- --
------------ -------------
Increase in net assets
from operations........ $ 175,634 $ 247,368
------------ -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 4,813,815 $ 7,525,727
Net transfers between Sub-
Accounts and Fixed
Account.................. (3,655,767) (3,679,992)
Withdrawals, surrenders,
annuitizations and
contract charges......... (1,189,025) (1,518,287)
------------ -------------
Net accumulation
activity............... $ (30,977) $ 2,327,448
------------ -------------
Annuitization Activity:
Annuitizations............ $ -- $ --
Annuity payments and
contract charges......... (322) (646)
Adjustments to annuity
reserve.................. (16) (38)
------------ -------------
Net annuitization
activity............... $ (338) $ (684)
------------ -------------
Increase (decrease) in net
assets from contract owner
transactions............... $ (31,315) $ 2,326,764
------------ -------------
Increase in net assets.... $ 144,319 $ 2,574,132
NET ASSETS:
Beginning of period......... 9,284,895 6,710,763
------------ -------------
End of period............... $ 9,429,214 $ 9,284,895
------------ -------------
------------ -------------
</TABLE>
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RES TRS UTS
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,
1997 1996* 1997 1996 1997 1996
------------ ------------ ----------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 201,058 $ (12,306) $ 2,974,689 $ 1,201,901 $ 308,027 $ 52,486
Net realized gains.......... 68,405 13,199 372,159 390,349 77,900 64,789
Net unrealized gains
(losses)................... 709,779 163,568 (61,252) 1,084,968 (77,142) 178,657
------------ ------------ ----------- ------------ ---------- ------------
Increase in net assets
from operations........ $ 979,242 $ 164,461 $ 3,285,596 $ 2,677,218 $ 308,785 $ 295,932
------------ ------------ ----------- ------------ ---------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 4,306,027 $3,950,551 $ 4,163,910 $ 7,465,981 $ 640,495 $ 766,463
Net transfers between
Sub-Accounts and Fixed
Account.................. 1,330,623 210,522 1,119,775 67,782 133,122 12,346
Withdrawals, surrenders,
annuitizations and
contract charges......... (66,884) (21,707) (1,317,910) (1,623,155) (125,111) (114,012)
------------ ------------ ----------- ------------ ---------- ------------
Net accumulation
activity............... $ 5,569,766 $4,139,366 $ 3,965,775 $ 5,910,608 $ 648,506 $ 664,797
------------ ------------ ----------- ------------ ---------- ------------
Annuitization Activity:
Annuity payments and
contract charges......... $ -- $ -- $ (32,663) $ (59,327) $ -- $ --
Adjustments to annuity
reserve.................. -- -- (7,997) (11,982) -- --
------------ ------------ ----------- ------------ ---------- ------------
Net annuitization
activity............... $ -- $ -- $ (40,660) $ (71,309) $ -- $ --
------------ ------------ ----------- ------------ ---------- ------------
Increase in net assets from
contract owner
transactions............... $ 5,569,766 $4,139,366 $ 3,925,115 $ 5,839,299 $ 648,506 $ 664,797
------------ ------------ ----------- ------------ ---------- ------------
Increase in net assets.... $ 6,549,008 $4,303,827 $ 7,210,711 $ 8,516,517 $ 957,291 $ 960,729
NET ASSETS:
Beginning of period......... 4,303,827 -- 26,484,247 17,967,730 2,191,402 1,230,673
------------ ------------ ----------- ------------ ---------- ------------
End of period............... $ 10,852,835 $4,303,827 $33,694,958 $26,484,247 $3,148,693 $2,191,402
------------ ------------ ----------- ------------ ---------- ------------
------------ ------------ ----------- ------------ ---------- ------------
<CAPTION>
WAA
Sub-Account
------------------------
Six Months
Ended Year Ended
June 30, December 31,
1997 1996**
---------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 64,979 $ (877)
Net realized gains.......... 13,230 430
Net unrealized gains
(losses)................... 20,269 12,514
---------- ------------
Increase in net assets
from operations........ $ 98,478 $ 12,067
---------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 964,220 $401,856
Net transfers between
Sub-Accounts and Fixed
Account.................. 290,934 4,517
Withdrawals, surrenders,
annuitizations and
contract charges......... (10,119) (511)
---------- ------------
Net accumulation
activity............... $1,245,035 $405,862
---------- ------------
Annuitization Activity:
Annuity payments and
contract charges......... $ -- $ --
Adjustments to annuity
reserve.................. -- --
---------- ------------
Net annuitization
activity............... $ -- $ --
---------- ------------
Increase in net assets from
contract owner
transactions............... $1,245,035 $405,862
---------- ------------
Increase in net assets.... $1,343,513 $417,929
NET ASSETS:
Beginning of period......... 417,929 --
---------- ------------
End of period............... $1,761,442 $417,929
---------- ------------
---------- ------------
</TABLE>
*For the period August 13, 1996 (commencement of operations) to December 31,
1996
**For the period August 29, 1996 (commencement of operations) to December 31,
1996
See notes to financial statements
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
WGS WGO WTR
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,
1997 1996 1997 1996 1997 1996*
---------- ------------ ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 141,516 $ 439,482 $ 116,994 $ 225,121 $ 11,957 $ (661)
Net realized gains
(losses)................... (42,813) (43,099) 68,353 86,529 3,720 334
Net unrealized gains
(losses)................... (206,983) (259,815) 708,381 89,790 36,928 9,927
---------- ------------ ---------- ------------ ---------- ------------
Increase (decrease) in
net assets from
operations............. $ (108,280) $ 136,568 $ 893,728 $ 401,440 $ 52,605 $ 9,600
---------- ------------ ---------- ------------ ---------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 165,595 $ 706,389 $ 795,558 $2,327,475 $ 476,970 $244,238
Net transfers between
Sub-Accounts and Fixed
Account.................. 29,541 444,392 611,176 914,961 244,728 4,753
Withdrawals, surrenders,
annuitizations and
contract charges......... (189,686) (218,490) (220,540) (442,142) (3,337) (479)
---------- ------------ ---------- ------------ ---------- ------------
Net accumulation
activity............... $ 5,450 $ 932,291 $1,186,194 $2,800,294 $ 718,361 $248,512
---------- ------------ ---------- ------------ ---------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ -- $ -- $ -- $ -- $ --
Annuity payments and
contract charges......... (1,090) (2,241) -- -- -- --
Adjustments to annuity
reserve.................. (28) (106) -- -- -- --
---------- ------------ ---------- ------------ ---------- ------------
Net annuitization
activity............... $ (1,118) $ (2,347) $ -- $ -- $ -- $ --
---------- ------------ ---------- ------------ ---------- ------------
Increase in net assets from
contract owner
transactions............... $ 4,332 $ 929,944 $1,186,194 $2,800,294 $ 718,361 $248,512
---------- ------------ ---------- ------------ ---------- ------------
Increase (decrease) in net
assets................... $ (103,948) $1,066,512 $2,079,922 $3,201,734 $ 770,966 $258,112
NET ASSETS:
Beginning of period......... 4,360,071 3,293,559 5,958,065 2,756,331 258,112 --
---------- ------------ ---------- ------------ ---------- ------------
End of period............... $4,256,123 $4,360,071 $8,037,987 $5,958,065 $1,029,078 $258,112
---------- ------------ ---------- ------------ ---------- ------------
---------- ------------ ---------- ------------ ---------- ------------
<CAPTION>
Total
--------------------------
Six Months
Ended Year Ended
June 30, December 31,
1997 1996
------------ ------------
<S> <C> <C>
OPERATIONS:
Net investment income
(expense).................. $ 9,209,045 $ 4,782,845
Net realized gains
(losses)................... 2,106,389 3,083,650
Net unrealized gains
(losses)................... 4,010,346 3,793,750
------------ ------------
Increase (decrease) in
net assets from
operations............. $ 15,325,780 $ 11,660,245
------------ ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 30,324,289 $ 48,770,620
Net transfers between
Sub-Accounts and Fixed
Account.................. 5,091,968 (384,185)
Withdrawals, surrenders,
annuitizations and
contract charges......... (5,863,387) (11,210,698)
------------ ------------
Net accumulation
activity............... $ 29,552,870 $ 37,175,737
------------ ------------
Annuitization Activity:
Annuitizations............ $ 251,244 $ 205,391
Annuity payments and
contract charges......... (53,940) (89,096)
Adjustments to annuity
reserve.................. (17,693) (21,685)
------------ ------------
Net annuitization
activity............... $ 179,611 $ 94,610
------------ ------------
Increase in net assets from
contract owner
transactions............... $ 29,732,481 $ 37,270,347
------------ ------------
Increase (decrease) in net
assets................... $ 45,058,261 $ 48,930,592
NET ASSETS:
Beginning of period......... 119,938,784 71,008,192
------------ ------------
End of period............... $164,997,045 $119,938,784
------------ ------------
------------ ------------
</TABLE>
*For the period September 18, 1996 (commencement of operations) to December 31,
1996
See notes to financial statements
7
<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
Regatta-NY and Regatta Gold-NY contracts commenced on April 1, 1993 and August
1, 1996, respectively. 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 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 subject to
tax.
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(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.
The Sponsor does not deduct a sales charge from the purchase payments. 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 exceed 9% of the purchase payment made under a
Regatta-NY contract or 6% of the aggregate purchase payments made under a
Regatta Gold-NY contract.
(4) ANNUITY RESERVES
Annuity reserves are calculated using the 1983 Individual Annuitant Mortality
Table and an assumed interest rate of 4% for Regatta-NY contracts and 3% for
Regatta Gold-NY contracts. Required adjustments to the reserves are accomplished
by transfers to or from the Sponsor.
9
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
(5) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
Units Transferred Units Withdrawn,
Units Outstanding Between Sub-Accounts Surrendered and Units Outstanding
Beginning of Period Units Purchased and Fixed Account Annuitized End of Period
--------------------- --------------------- ---------------------- ---------------------- ---------------------
Six Months Six Months Six Months Six Months Six Months
Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended Ended Year Ended
June 30, Dec. 31, June 30, Dec. 31, June 30, Dec. 31, June 30, Dec. 31, June 30, Dec. 31,
1997 1996 1997 1996 1997 1996 1997 1996 1997 1996
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MFS REGATTA
(N.Y.) CONTRACTS:
-----------------
CAS Sub-Account... 1,160,312 1,106,267 1,731 286,629 328 (41,266) (43,219) (191,318) 1,119,152 1,160,312
CGS Sub-Account... 845,581 671,847 1,750 240,454 5,896 48,286 (35,486) (115,006) 817,741 845,581
GSS Sub-Account... 654,198 554,873 -- 98,739 43,144 62,138 (18,584) (61,552) 678,758 654,198
HYS Sub-Account... 355,247 334,034 1,321 86,443 19,990 (7,902) (8,573) (57,328) 367,985 355,247
MSS Sub-Account... 326,412 277,142 -- 80,334 2,283 47,725 (14,176) (78,789) 314,519 326,412
MMS Sub-Account... 611,608 623,252 -- 364,043 44,516 (237,318) (102,644) (138,369) 553,480 611,608
TRS Sub-Account... 1,567,221 1,365,756 2,075 324,430 10,802 (4,270) (74,387) (118,695) 1,505,711 1,567,221
UTS Sub-Account... 112,112 97,337 -- 25,150 1,926 (2,207) (8,001) (8,168) 106,037 112,112
WGS Sub-Account... 321,322 268,890 -- 38,923 (3,080) 31,381 (11,096) (17,872) 307,146 321,322
WGO Sub-Account... 406,783 251,193 1,002 126,008 15,369 66,300 (16,236) (36,718) 406,918 406,783
MFS REGATTA GOLD
(N.Y.) CONTRACTS
-----------------
CAS Sub-Account*... 401,401 -- 242,569 407,434 68,720 (5,259) (19,907) (774) 692,783 401,401
CGS Sub-Account*... 347,210 -- 470,170 330,331 135,390 17,455 (25,108) (576) 927,662 347,210
EGS Sub-Account*... 335,404 -- 262,769 320,269 65,807 16,544 (14,641) (1,409) 649,339 335,404
FCG Sub-Account*... 56,408 -- 40,687 52,685 15,042 4,856 (609) (1,133) 111,528 56,408
GSS Sub-Account**... 40,062 -- 67,875 47,450 5,133 (7,335) (1,441) (53) 111,629 40,062
HYS Sub-Account*... 109,992 -- 83,020 105,694 44,398 4,469 (2,147) (171) 235,263 109,992
MSS Sub-Account*... 92,171 -- 44,223 89,182 25,132 3,307 (1,693) (318) 159,833 92,171
MMS Sub-Account**... 244,386 -- 472,309 356,116 (403,838) (722) (4,232) (111,008) 308,625 244,386
RES Sub-Account*... 386,810 -- 371,722 369,786 113,495 19,046 (5,890) (2,022) 866,137 386,810
TRS Sub-Account*... 321,897 -- 370,682 309,797 86,581 12,703 (19,713) (603) 759,447 321,897
UTS Sub-Account**... 45,474 -- 54,577 42,136 8,594 3,338 (20) -- 108,625 45,474
WAA Sub-Account**... 39,223 -- 87,818 38,842 26,516 430 (907) (49) 152,650 39,223
WGS Sub-Account**... 30,008 -- 16,323 23,592 9,189 6,423 (5,490) (7) 50,030 30,008
WGO Sub-Account**... 94,134 -- 73,122 81,554 37,450 12,751 (1,351) (171) 203,355 94,134
WTR Sub-Account***... 24,306 -- 43,955 23,899 22,454 453 (309) (46) 90,406 24,306
</TABLE>
*Units for the year ended December 31, 1996 are for the period August 13, 1996
(commencement of operations of the Sub-Account) to December 31, 1996.
**Units for the year ended December 31, 1996 are for the period August 29, 1996
(commencement of operations of the Sub-Account) to December 31, 1996.
***Units for the year ended December 31, 1996 are for the period September 18,
1996 (commencement of operations of the Sub-Account) to December 31, 1996.
10
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Participants 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, 1997, the related
statements of operations for the six months then ended and the statements of
changes in net assets for the six months ended June 30, 1997 and the year ended
December 31, 1996. 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, 1997,
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 8, 1997
----------------------------------------
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.
11
<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
DONALD A. STEWART, President and Director
DAVID D. HORN, Senior Vice President and
Director
S. CAESAR RABOY, 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
MARGARET SEARS MEAD, Assistant Vice President
and 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
JK
&
LMN
SEMIANNUAL REPORT, JUNE 30, 1997
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
RENY-8/97
