<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- December 31, 1996
<TABLE>
<CAPTION>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
--------- ----------- -----------
<S> <C> <C> <C>
Capital Appreciation Series ("CAS")........................................ 677,620 $21,139,073 $24,280,378
Conservative Growth Series ("CGS")......................................... 680,690 14,683,336 18,036,792
Emerging Growth Series ("EGS")............................................. 238,536 3,577,567 3,537,598
MFS/Foreign & Colonial International Growth Series ("FCG")................. 54,194 572,516 575,722
Government Securities Series ("GSS")....................................... 625,140 7,908,807 8,043,793
High Yield Series ("HYS").................................................. 646,578 5,733,607 5,956,759
Managed Sectors Series ("MSS")............................................. 238,438 5,745,868 6,258,922
Money Market Series ("MMS")................................................ 9,284,944 9,284,944 9,284,944
Research Series ("RES").................................................... 259,667 4,140,259 4,303,827
Total Return Series ("TRS")................................................ 1,363,836 23,138,854 26,512,871
Utilities Series ("UTS")................................................... 156,673 1,892,041 2,191,401
World Asset Allocation Series ("WAA")...................................... 30,331 405,413 417,927
World Governments Series ("WGS")........................................... 387,312 4,466,731 4,360,249
World Growth Series ("WGO")................................................ 457,126 5,709,395 5,958,066
World Total Return Series ("WTR").......................................... 19,457 248,186 258,112
----------- -----------
$108,646,597 $119,977,361
-----------
-----------
LIABILITY:
Payable to sponsor......................................................... 38,577
-----------
Net Assets............................................................. $119,938,784
-----------
-----------
</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
--------- ----------- ----------- ----------- -----------
Regatta-NY Contracts:
CAS................................................. 1,160,312 $ 16.8791 $19,621,285 $ 148,402 $19,769,687
CGS................................................. 845,581 16.5965 14,065,848 69,311 14,135,159
GSS................................................. 654,198 11.6198 7,624,785 9,009 7,633,794
HYS................................................. 355,247 13.3941 4,791,954 -- 4,791,954
MSS................................................. 326,412 15.8731 5,212,835 -- 5,212,835
MMS................................................. 611,608 11.1042 6,809,834 2,251 6,812,085
TRS................................................. 1,567,221 14.2737 22,396,243 623,737 23,019,980
UTS................................................. 112,112 15.0048 1,682,534 -- 1,682,534
WGS................................................. 321,322 12.5096 4,046,854 5,903 4,052,757
WGO................................................. 406,783 12.2345 4,977,292 -- 4,977,292
----------- ----------- -----------
$91,229,464 $ 858,613 $92,088,077
----------- ----------- -----------
Regatta Gold-NY Contracts:
CAS................................................. 401,401 $ 11.2208 $ 4,504,211 $ -- $ 4,504,211
CGS................................................. 347,210 11.2287 3,898,581 -- 3,898,581
EGS................................................. 335,404 10.5475 3,537,598 -- 3,537,598
FCG................................................. 56,408 10.2062 575,722 -- 575,722
GSS................................................. 40,062 10.2283 409,804 -- 409,804
HYS................................................. 109,992 10.5902 1,164,805 -- 1,164,805
MSS................................................. 92,171 11.3497 1,046,086 -- 1,046,086
MMS................................................. 244,386 10.1193 2,472,810 -- 2,472,810
RES................................................. 386,810 11.1263 4,303,827 -- 4,303,827
TRS................................................. 321,897 10.7617 3,464,267 -- 3,464,267
UTS................................................. 45,474 11.1898 508,868 -- 508,868
WAA................................................. 39,223 10.6551 417,929 -- 417,929
WGS................................................. 30,008 10.2412 307,314 -- 307,314
WGO................................................. 94,134 10.4190 980,773 -- 980,773
WTR................................................. 24,306 10.6202 258,112 -- 258,112
----------- ----------- -----------
$27,850,707 $ -- $27,850,707
----------- ----------- -----------
Net Assets.............................................................. $119,080,171 $ 858,613 $119,938,784
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See notes to financial statements
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF OPERATIONS-- Year Ended December 31, 1996
<TABLE>
<CAPTION>
CAS CGS EGS FCG GSS HYS MSS
Sub-Account Sub-Account Sub-Account* Sub-Account* Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions
received..................... $1,509,942 $ 464,174 $ -- $ -- $ 465,691 $ 336,895 $ 561,229
Mortality and expense risk
charges...................... 244,105 161,511 8,692 1,281 98,305 56,110 61,781
Administrative charges........ 29,293 19,381 1,043 154 11,797 6,733 7,414
----------- ----------- ----------- ------------- ----------- ----------- -----------
Net investment income
(loss)................... $1,236,544 $ 283,282 $ (9,735) $ (1,435) $ 355,589 $ 274,052 $ 492,034
----------- ----------- ----------- ------------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS:
Realized gains on investment
transactions:
Proceeds from sales......... $5,998,193 $2,311,917 $ 256,033 $ 31,913 $2,789,736 $2,701,730 $1,412,327
Cost of investments sold.... 4,595,974 1,625,361 237,294 31,202 2,749,850 2,472,675 1,218,374
----------- ----------- ----------- ------------- ----------- ----------- -----------
Net realized gains........ $1,402,219 $ 686,556 $ 18,739 $ 711 $ 39,886 $ 229,055 $ 193,953
----------- ----------- ----------- ------------- ----------- ----------- -----------
Net unrealized appreciation
(depreciation) on
investments:
End of year................. $3,141,305 $3,353,456 $ (39,969) $ 3,206 $ 134,986 $ 223,152 $ 513,054
Beginning of year........... 2,185,946 1,495,863 -- -- 455,475 236,587 441,178
----------- ----------- ----------- ------------- ----------- ----------- -----------
Change in unrealized
appreciation
(depreciation)........... $ 955,359 $1,857,593 $ (39,969) $ 3,206 $(320,489) $ (13,435) $ 71,876
----------- ----------- ----------- ------------- ----------- ----------- -----------
Realized and unrealized
gains (losses)......... $2,357,578 $2,544,149 $ (21,230) $ 3,917 $(280,603) $ 215,620 $ 265,829
----------- ----------- ----------- ------------- ----------- ----------- -----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS......... $3,594,122 $2,827,431 $ (30,965) $ 2,482 $ 74,986 $ 489,672 $ 757,863
----------- ----------- ----------- ------------- ----------- ----------- -----------
----------- ----------- ----------- ------------- ----------- ----------- -----------
<CAPTION>
MMS
Sub-Account
----------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions
received..................... $ 349,293
Mortality and expense risk
charges...................... 91,005
Administrative charges........ 10,920
----------
Net investment income
(loss)................... $ 247,368
----------
REALIZED AND UNREALIZED GAINS:
Realized gains on investment
transactions:
Proceeds from sales......... $10,360,091
Cost of investments sold.... 10,360,091
----------
Net realized gains........ $ --
----------
Net unrealized appreciation
(depreciation) on
investments:
End of year................. $ --
Beginning of year........... --
----------
Change in unrealized
appreciation
(depreciation)........... $ --
----------
Realized and unrealized
gains (losses)......... $ --
----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS......... $ 247,368
----------
----------
</TABLE>
<TABLE>
<CAPTION>
RES TRS UTS WAA WGS WGO WTR
Sub-Account* Sub-Account Sub-Account Sub-Account** Sub-Account Sub-Account Sub-Account***
----------- ----------- ----------- ------------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions received... $ -- $1,496,774 $ 74,155 $ -- $ 492,561 $ 287,259 $ --
Mortality and expense risk
charges....................... 10,987 263,279 19,347 783 47,392 55,480 590
Administrative charges......... 1,319 31,594 2,322 94 5,687 6,658 71
----------- ----------- ----------- ------------- ----------- ----------- -------------
Net investment income
(loss).................... $ (12,306) $1,201,901 $ 52,486 $ (877) $ 439,482 $ 225,121 $ (661)
----------- ----------- ----------- ------------- ----------- ----------- -------------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales.......... $ 221,366 $3,208,244 $ 329,633 $ 31,505 $ 532,064 $ 582,547 $ 13,171
Cost of investments sold..... 208,167 2,817,895 264,844 31,075 575,163 496,018 12,837
----------- ----------- ----------- ------------- ----------- ----------- -------------
Net realized gains
(losses).................. $ 13,199 $ 390,349 $ 64,789 $ 430 $ (43,099) $ 86,529 $ 334
----------- ----------- ----------- ------------- ----------- ----------- -------------
Net unrealized appreciation
(depreciation) on investments:
End of year.................. $ 163,568 $3,374,017 $ 299,360 $ 12,514 $(106,483) $ 248,671 $ 9,927
Beginning of year............ -- 2,289,049 120,703 -- 153,332 158,881 --
----------- ----------- ----------- ------------- ----------- ----------- -------------
Change in unrealized
appreciation
(depreciation)............ $ 163,568 $1,084,968 $ 178,657 $ 12,514 $(259,815) $ 89,790 $ 9,927
----------- ----------- ----------- ------------- ----------- ----------- -------------
Realized and unrealized
gains (losses).......... $ 176,767 $1,475,317 $ 243,446 $ 12,944 $(302,914) $ 176,319 $ 10,261
----------- ----------- ----------- ------------- ----------- ----------- -------------
INCREASE IN NET ASSETS FROM
OPERATIONS...................... $ 164,461 $2,677,218 $ 295,932 $ 12,067 $ 136,568 $ 401,440 $ 9,600
----------- ----------- ----------- ------------- ----------- ----------- -------------
----------- ----------- ----------- ------------- ----------- ----------- -------------
<CAPTION>
Total
----------
<S> <C>
INCOME AND EXPENSES:
Dividend income and capital
gain distributions received... $6,037,973
Mortality and expense risk
charges....................... 1,120,648
Administrative charges......... 134,480
----------
Net investment income
(loss).................... $4,782,845
----------
REALIZED AND UNREALIZED GAINS
(LOSSES):
Realized gains (losses) on
investment transactions:
Proceeds from sales.......... $30,780,470
Cost of investments sold..... 27,696,820
----------
Net realized gains
(losses).................. $3,083,650
----------
Net unrealized appreciation
(depreciation) on investments:
End of year.................. $11,330,764
Beginning of year............ 7,537,014
----------
Change in unrealized
appreciation
(depreciation)............ $3,793,750
----------
Realized and unrealized
gains (losses).......... $6,877,400
----------
INCREASE IN NET ASSETS FROM
OPERATIONS...................... $11,660,245
----------
----------
</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.
*** For the period September 18, 1996 (commencement of operations) to December
31, 1996.
See notes to financial statements
2
<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
---------------------- --------------------- -----------------
<S> <C> <C> <C> <C> <C>
Year Ended
Year Ended Year Ended December 31,
December 31, December 31, 1996*
---------------------- --------------------- -----------------
<CAPTION>
1996 1995 1996 1995
---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (expense)................ $1,236,544 $ 76,548 $ 283,282 $ 33,776 $ (9,735)
Net realized gains............................. 1,402,219 79,869 686,556 92,928 18,739
Net unrealized gains (losses).................. 955,359 2,630,005 1,857,593 1,558,928 (39,969)
---------- ---------- ---------- --------- -----------------
Increase (decrease) in net assets from
operations................................ $3,594,122 $2,786,422 $2,827,431 $1,685,632 $ (30,965)
---------- ---------- ---------- --------- -----------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received................... $8,660,397 $5,366,882 $6,950,910 $3,495,520 $ 3,404,586
Net transfers between Sub-Accounts and Fixed
Account..................................... (759,828) 1,418,442 873,302 649,433 178,813
Withdrawals, surrenders, annuitizations and
contract charges............................ (2,973,326) (418,456) (1,720,406) (200,218) (14,836)
---------- ---------- ---------- --------- -----------------
Net accumulation activity.................. $4,927,243 $6,366,868 $6,103,806 $3,944,735 $ 3,568,563
---------- ---------- ---------- --------- -----------------
Annuitization Activity:
Annuitizations............................... $ 136,803 $ 14,987 $ 68,590 $ -- $ --
Annuity payments and contract charges........ (18,380) (3,311) (5,923) -- --
Adjustments to annuity reserve............... (6,355) (185) (3,052) -- --
---------- ---------- ---------- --------- -----------------
Net annuitization activity................. $ 112,068 $ 11,491 $ 59,615 $ -- $ --
---------- ---------- ---------- --------- -----------------
Increase in net assets from contract owner
transactions.................................. $5,039,311 $6,378,359 $6,163,421 $3,944,735 $ 3,568,563
---------- ---------- ---------- --------- -----------------
Increase in net assets....................... $8,633,433 $9,164,781 $8,990,852 $5,630,367 $ 3,537,598
NET ASSETS:
Beginning of year.............................. 15,640,465 6,475,684 9,042,888 3,412,521 --
---------- ---------- ---------- --------- -----------------
End of year.................................... $24,273,898 $15,640,465 $18,033,740 $9,042,888 $ 3,537,598
---------- ---------- ---------- --------- -----------------
---------- ---------- ---------- --------- -----------------
<CAPTION>
FCG
Sub-Account
-----------------
<S> <C>
Year Ended
December 31,
1996*
-----------------
<S> <C>
OPERATIONS:
Net investment income (expense)................ $ (1,435)
Net realized gains............................. 711
Net unrealized gains (losses).................. 3,206
--------
Increase (decrease) in net assets from
operations................................ $ 2,482
--------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received................... $ 535,282
Net transfers between Sub-Accounts and Fixed
Account..................................... 49,397
Withdrawals, surrenders, annuitizations and
contract charges............................ (11,439)
--------
Net accumulation activity.................. $ 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.................................. $ 573,240
--------
Increase in net assets....................... $ 575,722
NET ASSETS:
Beginning of year.............................. --
--------
End of year.................................... $ 575,722
--------
--------
</TABLE>
* For the period August 13, 1996 (commencement of operations) to December 31,
1996.
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
GSS HYS MSS MMS
Sub-Account Sub-Account Sub-Account Sub-Account
--------------------- --------------------- --------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended
Year Ended Year Ended Year Ended December
December 31, December 31, December 31, 31,
--------------------- --------------------- --------------------- ----------
<CAPTION>
1996 1995 1996 1995 1996 1995 1996
--------- ---------- --------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income...................... $ 355,589 $ 242,483 $ 274,052 $ 167,734 $ 492,034 $ 35,186 $ 247,368
Net realized gains (losses)................ 39,886 (115,930) 229,055 76,785 193,953 9,478 --
Net unrealized gains (losses).............. (320,489) 736,390 (13,435) 233,953 71,876 557,033 --
--------- ---------- --------- ---------- ---------- --------- ----------
Increase in net assets from
operations............................ $ 74,986 $ 862,943 $ 489,672 $ 478,472 $ 757,863 $ 601,697 $ 247,368
--------- ---------- --------- ---------- ---------- --------- ----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............... $1,551,889 $1,638,343 $2,175,861 $1,270,014 $2,103,015 $1,349,023 $7,525,727
Net transfers between Sub-Accounts and
Fixed Account........................... 606,593 (2,027,001) (46,281) 583,971 734,538 399,369 (3,679,992)
Withdrawals, surrenders, annuitizations
and contract charges.................... (655,818) (154,062) (738,718) (1,757,160) (1,157,372) (103,799) (1,518,287)
--------- ---------- --------- ---------- ---------- --------- ----------
Net accumulation activity.............. $1,502,664 $ (542,720) $1,390,862 $ 96,825 $1,680,181 $1,644,593 $2,327,448
--------- ---------- --------- ---------- ---------- --------- ----------
Annuitization Activity:
Annuitizations........................... $ -- $ 11,807 $ -- $ -- $ -- $ -- $ --
Annuity payments and contract charges.... (2,581) (656) -- -- -- -- (646)
Adjustments to annuity reserve........... (152) (43) -- -- -- -- (38)
--------- ---------- --------- ---------- ---------- --------- ----------
Net annuitization activity............. $ (2,733) $ 11,108 $ -- $ -- $ -- $ -- $ (684)
--------- ---------- --------- ---------- ---------- --------- ----------
Increase (decrease) in net assets from
contract owner transactions............... $1,499,931 $ (531,612) $1,390,862 $ 96,825 $1,680,181 $1,644,593 $2,326,764
--------- ---------- --------- ---------- ---------- --------- ----------
Increase in net assets................... $1,574,917 $ 331,331 $1,880,534 $ 575,297 $2,438,044 $2,246,290 $2,574,132
NET ASSETS:
Beginning of year.......................... 6,468,681 6,137,350 4,076,225 3,500,928 3,820,877 1,574,587 6,710,763
--------- ---------- --------- ---------- ---------- --------- ----------
End of year................................ $8,043,598 $6,468,681 $5,956,759 $4,076,225 $6,258,921 $3,820,877 $9,284,895
--------- ---------- --------- ---------- ---------- --------- ----------
--------- ---------- --------- ---------- ---------- --------- ----------
<CAPTION>
<S> <C>
1995
----------
<S> <C>
OPERATIONS:
Net investment income...................... $ 212,481
Net realized gains (losses)................ --
Net unrealized gains (losses).............. --
----------
Increase in net assets from
operations............................ $ 212,481
----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............... $7,242,711
Net transfers between Sub-Accounts and
Fixed Account........................... (4,861,678)
Withdrawals, surrenders, annuitizations
and contract charges.................... (120,225)
----------
Net accumulation activity.............. $2,260,808
----------
Annuitization Activity:
Annuitizations........................... $ 2,948
Annuity payments and contract charges.... (162)
Adjustments to annuity reserve........... (10)
----------
Net annuitization activity............. $ 2,776
----------
Increase (decrease) in net assets from
contract owner transactions............... $2,263,584
----------
Increase in net assets................... $2,476,065
NET ASSETS:
Beginning of year.......................... 4,234,698
----------
End of year................................ $6,710,763
----------
----------
</TABLE>
See notes to financial statements
4
<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
----------------- ---------------------- --------------------
<S> <C> <C> <C> <C> <C>
Year Ended
December 31, Year Ended Year Ended
1996* December 31, December 31,
----------------- ---------------------- --------------------
<CAPTION>
1996 1995 1996 1995
---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (expense)................ $ (12,306) $1,201,901 $ 307,436 $ 52,486 $ (632)
Net realized gains............................. 13,199 390,349 59,519 64,789 10,315
Net unrealized gains........................... 163,568 1,084,968 2,777,204 178,657 120,719
----------------- ---------- ---------- --------- ---------
Increase in net assets from operations..... $ 164,461 $2,677,218 $3,144,159 $ 295,932 $ 130,402
----------------- ---------- ---------- --------- ---------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received................... $ 3,950,551 $7,465,981 $3,549,303 $ 766,463 $ 648,062
Net transfers between Sub-Accounts and Fixed
Account..................................... 210,522 67,782 647,551 12,346 398,554
Withdrawals, surrenders, annuitizations and
contract charges............................ (21,707) (1,623,155) (662,572) (114,012) (5,451)
----------------- ---------- ---------- --------- ---------
Net accumulation activity.................. $ 4,139,366 $5,910,608 $3,534,282 $ 664,797 $1,041,165
----------------- ---------- ---------- --------- ---------
Annuitization Activity:
Annuitizations............................... $ -- $ -- $ -- $ -- $ --
Annuity payments and contract charges........ -- (59,327) (53,574) -- --
Adjustments to annuity reserve............... -- (11,982) 1,036 -- --
----------------- ---------- ---------- --------- ---------
Net annuitization activity................. $ -- $ (71,309) $ (52,538) $ -- $ --
----------------- ---------- ---------- --------- ---------
Increase in net assets from contract owner
transactions.................................. $ 4,139,366 $5,839,299 $3,481,744 $ 664,797 $1,041,165
----------------- ---------- ---------- --------- ---------
Increase in net assets....................... $ 4,303,827 $8,516,517 $6,625,903 $ 960,729 $1,171,567
NET ASSETS:
Beginning of year.............................. -- 17,967,730 11,341,827 1,230,673 59,106
----------------- ---------- ---------- --------- ---------
End of year.................................... $ 4,303,827 $26,484,247 $17,967,730 $2,191,402 $1,230,673
----------------- ---------- ---------- --------- ---------
----------------- ---------- ---------- --------- ---------
<CAPTION>
WAA
Sub-Account
-------------------
<S> <C>
Year Ended
December 31, 1996**
-------------------
<S> <C>
OPERATIONS:
Net investment income (expense)................ $ (877)
Net realized gains............................. 430
Net unrealized gains........................... 12,514
--------
Increase in net assets from operations..... $ 12,067
--------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received................... $ 401,856
Net transfers between Sub-Accounts and Fixed
Account..................................... 4,517
Withdrawals, surrenders, annuitizations and
contract charges............................ (511)
--------
Net accumulation activity.................. $ 405,862
--------
Annuitization Activity:
Annuitizations............................... $ --
Annuity payments and contract charges........ --
Adjustments to annuity reserve............... --
--------
Net annuitization activity................. $ --
--------
Increase in net assets from contract owner
transactions.................................. $ 405,862
--------
Increase in net assets....................... $ 417,929
NET ASSETS:
Beginning of year.............................. --
--------
End of year.................................... $ 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
5
<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 Total
-------------------- -------------------- ------------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Year Ended Year Ended
Year Ended Year Ended December 31, December
December 31, December 31, 1996*** 31,
-------------------- -------------------- ------------------- -----------
<CAPTION>
1996 1995 1996 1995 1996
--------- --------- --------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income (expense)............ $ 439,482 $ 105,435 $ 225,121 $ 5,851 $ (661) $ 4,782,845
Net realized gains (losses)................ (43,099) (37,747) 86,529 4,653 334 3,083,650
Net unrealized gains (losses).............. (259,815) 309,414 89,790 167,910 9,927 3,793,750
--------- --------- --------- --------- -------- -----------
Increase in net assets from
operations............................ $ 136,568 $ 377,102 $ 401,440 $ 178,414 $ 9,600 $11,660,245
--------- --------- --------- --------- -------- -----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............... $ 706,389 $ 492,054 $2,327,475 $1,231,855 $ 244,238 $48,770,620
Net transfers between Sub-Accounts and
Fixed Account........................... 444,392 (30,310) 914,961 1,034,283 4,753 (384,185)
Withdrawals, surrenders, annuitizations
and contract charges.................... (218,490) (109,230) (442,142) (24,904) (479) (11,210,698)
--------- --------- --------- --------- -------- -----------
Net accumulation activity.............. $ 932,291 $ 352,514 $2,800,294 $2,241,234 $ 248,512 $37,175,737
--------- --------- --------- --------- -------- -----------
Annuitization Activity:
Annuitizations........................... $ -- $ -- $ -- $ -- $ -- $ 205,393
Annuity payments and contract charges.... (2,242) (2,227) -- -- -- (89,099)
Adjustments to annuity reserve........... (105) (119) -- -- -- (21,684)
--------- --------- --------- --------- -------- -----------
Net annuitization activity............. $ (2,347) $ (2,346) $ -- $ -- $ -- $ 94,610
--------- --------- --------- --------- -------- -----------
Increase in net assets from contract owner
transactions.............................. $ 929,944 $ 350,168 $2,800,294 $2,241,234 $ 248,512 $37,270,347
--------- --------- --------- --------- -------- -----------
Increase in net assets................... $1,066,512 $ 727,270 $3,201,734 $2,419,648 $ 258,112 $48,930,592
NET ASSETS:
Beginning of year.......................... 3,293,559 2,566,289 2,756,331 336,683 -- 71,008,192
--------- --------- --------- --------- -------- -----------
End of year................................ $4,360,071 $3,293,559 $5,958,065 $2,756,331 $ 258,112 $119,938,784
--------- --------- --------- --------- -------- -----------
--------- --------- --------- --------- -------- -----------
<CAPTION>
<S> <C>
1995
----------
<S> <C>
OPERATIONS:
Net investment income (expense)............ $1,186,298
Net realized gains (losses)................ 179,870
Net unrealized gains (losses).............. 9,091,556
----------
Increase in net assets from
operations............................ $10,457,724
----------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments received............... $26,283,767
Net transfers between Sub-Accounts and
Fixed Account........................... (1,787,386)
Withdrawals, surrenders, annuitizations
and contract charges.................... (2,556,077)
----------
Net accumulation activity.............. $20,940,304
----------
Annuitization Activity:
Annuitizations........................... $ 29,742
Annuity payments and contract charges.... (59,930)
Adjustments to annuity reserve........... 679
----------
Net annuitization activity............. $ (29,509)
----------
Increase in net assets from contract owner
transactions.............................. $20,910,795
----------
Increase in net assets................... $31,368,519
NET ASSETS:
Beginning of year.......................... 39,639,673
----------
End of year................................ $71,008,192
----------
----------
</TABLE>
*** For the period September 18, 1996 (commencement of operations) to December
31, 1996.
See notes to financial statements
6
<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.
7
<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.
(5) UNIT ACTIVITY FROM CONTRACT OWNER TRANSACTIONS
<TABLE>
<CAPTION>
CAS CGS GSS
Sub-Account Sub-Account Sub-Account
------------------------- ------------------------- -------------------------
<S> <C> <C> <C> <C> <C> <C>
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------------------- ------------------------- -------------------------
<CAPTION>
REGATTA-NY CONTRACTS 1996 1995 1996 1995 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding beginning of
year.............................. 1,106,267 606,673 671,847 342,664 554,873 612,070
Units purchased.................. 286,629 415,058 240,454 293,750 98,739 149,800
Units transferred between
Sub-Accounts
and Fixed Account............... (41,266) 118,528 48,286 53,992 62,138 (191,789)
Units withdrawn, surrendered and
annuitized...................... (191,318) (33,992) (115,006) (18,559) (61,552) (15,208)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding end of year...... 1,160,312 1,106,267 845,581 671,847 654,198 554,873
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
HYS MSS
Sub-Account Sub-Account
------------------------- -------------------------
<S> <C> <C> <C> <C>
Year Ended Year Ended
December 31, December 31,
------------------------- -------------------------
REGATTA-NY CONTRACTS 1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Units outstanding beginning of
year.............................. 334,034 331,677 277,142 148,048
Units purchased.................. 86,443 108,668 80,334 105,019
Units transferred between
Sub-Accounts
and Fixed Account............... (7,902) 50,762 47,725 32,193
Units withdrawn, surrendered and
annuitized...................... (57,328) (157,073) (78,789) (8,118)
----------- ----------- ----------- -----------
Units outstanding end of year...... 355,247 334,034 326,412 277,142
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
8
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- continued
REGATTA-NY CONTRACTS continued
<TABLE>
<CAPTION>
MMS TRS UTS
Sub-Account Sub-Account Sub-Account
------------------------- ------------------------- -------------------------
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
------------------------- ------------------------- -------------------------
1996 1995 1996 1995 1996 1995
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding beginning of
year.............................. 623,252 408,469 1,365,756 1,063,839 97,337 6,103
Units purchased.................. 364,043 687,664 324,430 305,777 25,150 57,226
Units transferred between
Sub-Accounts
and Fixed Account............... (237,318) (460,986) (4,270) 54,692 (2,207) 34,485
Units withdrawn, surrendered and
annuitized...................... (138,369) (11,895) (118,695) (58,552) (8,168) (477)
----------- ----------- ----------- ----------- ----------- -----------
Units outstanding end of year...... 611,608 623,252 1,567,221 1,365,756 112,112 97,337
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
<CAPTION>
WGS WGO
Sub-Account Sub-Account
------------------------- -------------------------
Year Ended Year Ended
December 31, December 31,
------------------------- -------------------------
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Units outstanding beginning of
year.............................. 268,890 238,927 251,193 35,096
Units purchased.................. 38,923 41,956 126,008 118,652
Units transferred between
Sub-Accounts
and Fixed Account............... 31,381 (2,027) 66,300 100,386
Units withdrawn, surrendered and
annuitized...................... (17,872) (9,966) (36,718) (2,941)
----------- ----------- ----------- -----------
Units outstanding end of year...... 321,322 268,890 406,783 251,193
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
CAS CGS EGS FCG GSS
Sub-Account* Sub-Account* Sub-Account* Sub-Account* Sub-Account**
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
REGATTA GOLD-NY CONTRACTS Year Ended December 31, 1996
-------------------------------------------------------------------
Units outstanding beginning of
period............................ -- -- -- -- --
Units purchased.................. 407,434 330,331 320,269 52,685 47,450
Units transferred between
Sub-Accounts and Fixed
Account......................... (5,259) 17,455 16,544 4,856 (7,335)
Units withdrawn, surrendered and
annuitized...................... (774) (576) (1,409) (1,133) (53)
----------- ----------- ----------- ----------- -----------
Units outstanding end of period.... 401,401 347,210 335,404 56,408 40,062
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
HYS MSS MMS RES TRS
Sub-Account* Sub-Account* Sub-Account** Sub-Account* Sub-Account*
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Year Ended December 31, 1996
-------------------------------------------------------------------
Units outstanding beginning of
period............................ -- -- -- -- --
Units purchased.................. 105,694 89,182 356,116 369,786 309,797
Units transferred between
Sub-Accounts and Fixed
Account......................... 4,469 3,307 (722) 19,046 12,703
Units withdrawn, surrendered and
annuitized...................... (171) (318) (111,008) (2,022) (603)
----------- ----------- ----------- ----------- -----------
Units outstanding end of period.... 109,992 92,171 244,386 386,810 321,897
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
<CAPTION>
UTS WAA WGS WGO WTR
Sub-Account** Sub-Account** Sub-Account** Sub-Account** Sub-Account***
----------- ----------- ----------- ----------- -----------
Year Ended December 31, 1996
-------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Units outstanding beginning of
period............................ -- -- -- -- --
Units purchased.................. 42,136 38,842 23,592 81,554 23,899
Units transferred between
Sub-Accounts and Fixed
Account......................... 3,338 430 6,423 12,751 453
Units withdrawn, surrendered and
annuitized...................... -- (49) (7) (171) (46)
----------- ----------- ----------- ----------- -----------
Units outstanding end of period.... 45,474 39,223 30,008 94,134 24,306
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</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.
*** For the period September 18, 1996 (commencement of operations) to December
31, 1996.
9
<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 December 31, 1996, the related
statement of operations for the year then ended and the statements of changes in
net assets for the years ended December 31, 1996 and 1995. These financial
statements are the responsibility of management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities held at December 31, 1996 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 Variable Account as of December 31,
1996, the results of its operations and the changes in its net assets for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 7, 1997
10
<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
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
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.
RENY-32/97
[REGATTA LOGO]
&
[REGATTA LOGO]
ANNUAL REPORT, DECEMBER 31, 1996
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
