<PAGE>
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
80 Broad Street, New York, NY 10004
DIRECTORS AND OFFICERS
DONALD A. STEWART, Chairman and Director
C. JAMES PRIEUR, President and Director
S. CAESAR RABOY, Senior Vice President and
Director
RICHARD B. BAILEY, Director
M. COLYER CRUM, Director
DAVID D. HORN, Director
JOHN G. IRELAND, Director
EDWARD M. LAMONT, Director
JOHN S. LANE, Director
ANGUS A. MacNAUGHTON, Director
JOHN D. McNEIL, Director
PETER R. O'FLINN, Director
FIORAVANTE G. PERROTTA, Director
RALPH F. PETERS, Director
FREDERICK B. WHITTEMORE, 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, 1998
PROFESSIONALLY MANAGED ANNUITIES ISSUED BY
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK
RENY-8/98 11M
<PAGE>
PERFORMANCE SUMMARY
These performance results do not reflect any applicable surrender charges. Past
performance is no guarantee of future results.
<TABLE>
<CAPTION>
UNIT VALUE PERCENT
----------------------------------- CHANGE IN
DECEMBER 31, 1997 JUNE 30, 1998 UNIT VALUE
------------------- -------------- -----------
<S> <C> <C> <C>
REGATTA -- NY CONTRACTS:
Capital Appreciation Series...................................... $ 20.4954 $ 24.3991 19.05%
Conservative Growth Series....................................... 21.5979 25.0674 16.06
Government Securities Series..................................... 12.4617 12.8576 3.18
High Yield Series................................................ 14.9542 15.6357 4.56
Managed Sectors Series........................................... 19.6663 21.8078 10.89
Money Market Series.............................................. 11.5063 11.7132 1.80
Total Return Series.............................................. 17.1690 18.5386 7.98
Utilities Series................................................. 19.6408 21.764 10.81
World Governments Series......................................... 13.9137 12.3520 (11.22)
World Growth Series.............................................. 12.4194 15.6063 (25.66)
REGATTA GOLD -- NY CONTRACTS
Capital Appreciation Series...................................... 13.6249 16.2199 19.05%
Capital Opportunities Series*.................................... 10.8511 12.8055 18.01
Conservative Growth Series....................................... 14.6125 16.9598 16.06
Emerging Growth Series........................................... 12.6847 15.2597 20.30
MFS/Foreign & Colonial Emerging Markets Equity Series............ 8.7203 7.1471 (18.04)
MFS/International Growth Series.................................. 10.7213 12.7419 18.85
MFS/International Growth and Income Series....................... 9.3612 10.0864 7.75
Government Securities Series..................................... 10.9695 11.3179 3.18
High Yield Series................................................ 11.8237 12.3625 4.56
Managed Sectors Series........................................... 14.0620 15.5932 10.89
Money Market Series.............................................. 10.4857 10.6743 1.80
Research Series.................................................. 13.2588 15.6203 17.81
Research Growth and Income Series................................ 10.7234 12.4576 16.17
Total Return Series.............................................. 12.9446 13.9772 7.98
Utilities Series................................................. 14.6470 16.2304 10.81
World Asset Allocation Series.................................... 11.6505 12.6941 8.96
World Governments Series......................................... 10.0221 10.1122 0.90
World Growth Series.............................................. 11.8491 13.2905 12.16
World Total Return Series........................................ 11.9033 13.1256 10.27
</TABLE>
* Before May 1, 1998, called the Value Series.
1
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENT OF CONDITION-- June 30, 1998
<TABLE>
<S> <C> <C> <C>
ASSETS:
Investments in MFS/Sun Life Series Trust: Shares Cost Value
---------- ------------ ------------
Capital Appreciation Series ("CAS").......................................... 1,064,422 $ 39,180,827 $ 45,536,109
Capital Opportunities("COS")................................................. 136,805 2,046,213 2,174,537
Conservative Growth Series ("CGS")........................................... 1,795,022 53,720,449 65,098,623
Emerging Growth Series ("EGS")............................................... 983,738 17,298,811 20,723,786
Foreign & Colonial Emerging Markets Equity Series ("FCE").................... 38,450 470,362 345,240
International Growth Series ("FCG").......................................... 251,653 2,851,228 3,264,983
International Growth and Income Series ("FCI")............................... 29,945 310,462 305,010
Government Securities Series ("GSS")......................................... 905,749 11,560,319 11,589,932
High Yield Series ("HYS").................................................... 1,529,603 14,405,732 14,667,203
Managed Sectors Series ("MSS")............................................... 437,407 11,916,830 12,286,733
Money Market Series ("MMS").................................................. 9,522,649 9,522,100 9,522,100
Research Series ("RES")...................................................... 1,491,885 28,640,444 32,958,756
Research Growth and Income Series ("RGS").................................... 111,252 1,267,423 1,426,844
Total Return Series ("TRS").................................................. 2,479,313 47,127,288 51,119,192
Utilities Series ("UTS")..................................................... 501,056 7,593,091 8,122,932
World Asset Allocation Series ("WAA")........................................ 233,440 3,389,705 3,475,879
World Governments Series ("WGS")............................................. 380,358 4,255,568 4,092,096
World Growth Series ("WGO").................................................. 685,066 9,562,328 10,574,516
World Total Return Series ("WTR")............................................ 226,290 3,308,116 3,525,596
------------ ------------
$268,427,296 $300,810,067
------------ ------------
------------
LIABILITY:
Payable to sponsor............................................................. 86,078
------------
Net Assets................................................................... $300,723,989
------------
------------
</TABLE>
<TABLE>
<CAPTION>
NET ASSETS:
Applicable to Owners of Reserve
Deferred Variable Annuity Contracts: for
------------------------------------ Variable
Units Unit Value Value Annuities
--------- ----------- ------------ ----------
<S> <C> <C> <C> <C>
Regatta-NY Contracts:
CAS.............................................................. 1,058,092 $ 24.3991 $ 25,812,116 $ 146,376
CGS.............................................................. 799,646 25.0674 20,043,787 92,006
GSS.............................................................. 642,510 12.8576 8,258,891 --
HYS.............................................................. 322,575 15.6357 5,057,550 18,447
MSS.............................................................. 304,547 21.8078 6,641,869 --
MMS.............................................................. 510,504 11.7132 5,975,960 --
TRS.............................................................. 1,389,176 18.5386 25,749,207 689,534
UTS.............................................................. 97,444 21.7640 2,121,411 --
WGS.............................................................. 258,454 12.3520 3,194,818 2,572
WGO.............................................................. 354,396 15.6063 5,531,920 --
------------ ----------
$108,387,529 $ 948,935
------------ ----------
Regatta Gold-NY Contracts:
CAS.............................................................. 1,206,074 $ 16.2199 $ 19,566,027 $ --
COS.............................................................. 169,908 12.8055 2,174,537 --
CGS.............................................................. 2,633,015 16.9598 44,651,982 291,180
EGS.............................................................. 1,358,095 15.2597 20,723,786 --
FCE.............................................................. 47,472 7.1471 345,240 --
FCG.............................................................. 256,245 12.7419 3,264,983 --
FCI.............................................................. 30,831 10.0864 305,010 --
GSS.............................................................. 294,383 11.3179 3,330,650 --
HYS.............................................................. 775,167 12.3625 9,590,991 --
MSS.............................................................. 361,986 15.5932 5,644,864 --
MMS.............................................................. 332,194 10.6743 3,546,059 --
RES.............................................................. 2,109,996 15.6203 32,958,756 --
RGS.............................................................. 113,842 12.4576 1,426,844 --
TRS.............................................................. 1,762,645 13.9772 24,626,578 --
UTS.............................................................. 368,829 16.2304 6,001,521 --
WAA.............................................................. 273,512 12.6941 3,475,879 --
WGS.............................................................. 88,432 10.1122 894,446 --
WGO.............................................................. 379,326 13.2905 5,042,596 --
WTR.............................................................. 268,598 13.1256 3,525,596 --
------------ ----------
$191,096,345 $ 291,180
------------ ----------
Net Assets........................................................................... $299,483,874 $1,240,115
------------ ----------
------------ ----------
<CAPTION>
NET ASSETS:
Total
------------
<S> <C>
Regatta-NY Contracts:
CAS.............................................................. $ 25,958,492
CGS.............................................................. 20,135,793
GSS.............................................................. 8,258,891
HYS.............................................................. 5,075,997
MSS.............................................................. 6,641,869
MMS.............................................................. 5,975,960
TRS.............................................................. 26,438,741
UTS.............................................................. 2,121,411
WGS.............................................................. 3,197,390
WGO.............................................................. 5,531,920
------------
$109,336,464
------------
Regatta Gold-NY Contracts:
CAS.............................................................. $ 19,566,027
COS.............................................................. 2,174,537
CGS.............................................................. 44,943,162
EGS.............................................................. 20,723,786
FCE.............................................................. 345,240
FCG.............................................................. 3,264,983
FCI.............................................................. 305,010
GSS.............................................................. 3,330,650
HYS.............................................................. 9,590,991
MSS.............................................................. 5,644,864
MMS.............................................................. 3,546,059
RES.............................................................. 32,958,756
RGS.............................................................. 1,426,844
TRS.............................................................. 24,626,578
UTS.............................................................. 6,001,521
WAA.............................................................. 3,475,879
WGS.............................................................. 894,446
WGO.............................................................. 5,042,596
WTR.............................................................. 3,525,596
------------
$191,387,525
------------
Net Assets................................................... $300,723,989
------------
------------
</TABLE>
See notes to financial statements
2
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF OPERATIONS-- Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
CAS COS CGS EGS FCE
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and
capital gain
distributions
received.............. $4,727,025 $ 65,902 $ 4,021,926 $ 588,305 $ 12,512
Mortality and expense
risk charges.......... 252,362 8,566 330,947 100,789 2,308
Administrative
charges............... 30,284 1,028 39,714 12,095 277
----------- ----------- ----------- ----------- -----------
Net investment
income.............. $4,444,379 $ 56,308 $ 3,651,265 $ 475,421 $ 9,927
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains (losses)
on investment
transactions:
Proceeds from
sales............... $3,919,657 $117,491 $ 2,494,104 $1,110,467 $ 45,545
Cost of investments
sold................ 2,615,946 98,398 1,532,941 809,358 49,388
----------- ----------- ----------- ----------- -----------
Net realized gains
(loss)............ $1,303,711 $ 19,093 $ 961,163 $ 301,109 $ (3,843)
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation) on
investments:
End of period........ $6,355,282 $128,324 $11,378,174 $3,424,975 $(125,122)
Beginning of
period.............. 5,044,914 21,682 8,236,126 1,240,869 (52,077)
----------- ----------- ----------- ----------- -----------
Change in
unrealized
appreciation
(depreciation).... $1,310,368 $106,642 $ 3,142,048 $2,184,106 $ (73,045)
----------- ----------- ----------- ----------- -----------
Realized and
unrealized gains
(losses)........ $2,614,079 $125,735 $ 4,103,211 $2,485,215 $ (76,888)
----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS.............. $7,058,458 $182,043 $ 7,754,476 $2,960,636 $ (66,961)
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
FCG FCI GSS HYS MSS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and
capital gain
distributions
received.............. $ 90,124 $ 2,011 $ 606,876 $ 850,440 $1,700,250
Mortality and expense
risk charges.......... 17,045 1,141 63,450 79,779 70,431
Administrative
charges............... 2,046 137 7,614 9,573 8,452
----------- ----------- ----------- ----------- -----------
Net investment
income.............. $ 71,033 $ 733 $ 535,812 $ 761,088 $1,621,367
----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains (losses)
on investment
transactions:
Proceeds from
sales............... $194,503 $ 37,189 $1,418,576 $1,239,450 $ 923,450
Cost of investments
sold................ 169,362 45,369 1,387,378 1,121,665 763,317
----------- ----------- ----------- ----------- -----------
Net realized gains
(loss)............ $ 25,141 $ (8,180) $ 31,198 $ 117,785 $ 160,133
----------- ----------- ----------- ----------- -----------
Net unrealized
appreciation
(depreciation) on
investments:
End of period........ $413,755 $ (5,452) $ 29,613 $ 261,471 $ 369,903
Beginning of
period.............. 60,185 (3,549) 264,065 604,130 1,044,592
----------- ----------- ----------- ----------- -----------
Change in
unrealized
appreciation
(depreciation).... $353,570 $ (1,903) $ (234,452) $ (342,659) $ (674,689)
----------- ----------- ----------- ----------- -----------
Realized and
unrealized gains
(losses)........ $378,711 $(10,083) $ (203,254) $ (224,874) $ (514,556)
----------- ----------- ----------- ----------- -----------
INCREASE (DECREASE) IN
NET ASSETS FROM
OPERATIONS.............. $449,744 $ (9,350) $ 332,558 $ 536,214 $1,106,811
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>
See notes to financial statements
3
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF OPERATIONS-- Six Months Ended June 30, 1998 -- continued
<TABLE>
<CAPTION>
MMS RES RGS TRS UTS
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Dividend income and
capital gain
distributions
received.............. $ 238,957 $1,202,319 $ 5,749 $ 5,291,992 $808,978
Mortality and expense
risk charges.......... 59,312 162,276 6,044 285,732 38,834
Administrative
charges............... 7,118 19,473 725 34,288 4,660
----------- ----------- ----------- ------------ -----------
Net investment income
(loss).............. $ 172,527 $1,020,570 $ (1,020) $ 4,971,972 $765,484
----------- ----------- ----------- ------------ -----------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains on
investment
transactions:
Proceeds from
sales............... $11,774,060 $1,333,767 $ 88,953 $ 2,411,626 $509,595
Cost of investments
sold................ 11,774,060 1,054,701 78,088 1,886,039 377,867
----------- ----------- ----------- ------------ -----------
Net realized
gains............. $ -- $ 279,066 $ 10,865 $ 525,587 $131,728
----------- ----------- ----------- ------------ -----------
Net unrealized
appreciation on
investments:
End of period........ $ -- $4,318,312 $159,421 $ 3,991,904 $529,841
Beginning of
period.............. -- 1,565,138 27,151 5,938,585 809,777
----------- ----------- ----------- ------------ -----------
Change in
unrealized
appreciation...... -- $2,753,174 $132,270 $(1,946,681) $(279,936)
----------- ----------- ----------- ------------ -----------
Realized and
unrealized gains
(losses)........ $ -- $3,032,240 $143,135 $(1,421,094) $(148,208)
----------- ----------- ----------- ------------ -----------
INCREASE IN NET ASSETS
FROM OPERATIONS......... $ 172,527 $4,052,810 $142,115 $ 3,550,878 $617,276
----------- ----------- ----------- ------------ -----------
----------- ----------- ----------- ------------ -----------
</TABLE>
<TABLE>
<CAPTION>
WAA WGS WGO WTR
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.............. $219,895 $ 52,678 $ 742,689 $146,812 $ 21,375,440
Mortality and expense
risk charges.......... 18,612 25,197 62,082 17,997 1,602,904
Administrative
charges............... 2,233 3,024 7,450 2,159 192,350
----------- ----------- ----------- ----------- ------------
Net investment
income.............. $199,050 $ 24,457 $ 673,157 $126,656 $ 19,580,186
----------- ----------- ----------- ----------- ------------
REALIZED AND UNREALIZED
GAINS (LOSSES):
Realized gains (losses)
on investment
transactions:
Proceeds from
sales............... $135,046 $ 574,802 $1,263,789 $245,710 $ 29,837,780
Cost of investments
sold................ 123,639 604,719 1,008,088 202,357 25,702,680
----------- ----------- ----------- ----------- ------------
Net realized gains
(losses).......... $ 11,407 $ (29,917) $ 255,701 $ 43,353 $ 4,135,100
----------- ----------- ----------- ----------- ------------
Net unrealized
appreciation
(depreciation) on
investments:
End of period........ $ 86,174 $(163,472) $1,012,188 $217,480 $ 32,382,771
Beginning of
period.............. 56,458 (205,715) 833,861 121,517 25,607,709
----------- ----------- ----------- ----------- ------------
Change in
unrealized
appreciation
(depreciation).... $ 29,716 $ 42,243 $ 178,327 $ 95,963 $ 6,775,062
----------- ----------- ----------- ----------- ------------
Realized and
unrealized
gains........... $ 41,123 $ 12,326 $ 434,028 $139,316 $ 10,910,162
----------- ----------- ----------- ----------- ------------
INCREASE IN NET ASSETS
FROM OPERATIONS......... $240,173 $ 36,783 $1,107,185 $265,972 $ 30,490,348
----------- ----------- ----------- ----------- ------------
----------- ----------- ----------- ----------- ------------
</TABLE>
See notes to financial statements
4
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CAS COS
Sub-Account Sub-Account
--------------------------- --------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997*
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ 4,444,379 $ 2,120,283 $ 56,308 $ (1,777)
Net realized gains
(losses)................... 1,303,711 1,540,585 19,093 4,627
Net unrealized gains
(losses)................... 1,310,368 1,903,609 106,642 21,682
------------ ------------ ----------- ------------
Increase (decrease) in
net assets from
operations............. $ 7,058,458 $ 5,564,477 $ 182,043 $ 24,532
------------ ------------ ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 3,331,423 $ 5,437,094 $ 821,924 $342,925
Net transfers between
Sub-Accounts and Fixed
Account.................. 1,298,021 2,074,585 508,029 302,919
Withdrawals, surrenders,
annuitizations and
contract charges......... (1,532,446) (1,919,576) (7,835) --
------------ ------------ ----------- ------------
Net accumulation
activity............... $ 3,096,998 $ 5,592,103 $ 1,322,118 $645,844
------------ ------------ ----------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ -- $ -- $ --
Annuity payments and
account fees............. (24,961) (31,346) -- --
Adjustments to annuity
reserve.................. (2,532) (2,576) -- --
------------ ------------ ----------- ------------
Net annuitization
activity............... $ (27,493) $ (33,922) $ -- $ --
------------ ------------ ----------- ------------
Increase in net assets from
contract owner
transactions............... $ 3,069,505 $ 5,558,181 $ 1,322,118 $645,844
------------ ------------ ----------- ------------
Increase (decrease) in net
assets................... $ 10,127,963 $11,122,658 $ 1,504,161 $670,376
NET ASSETS:
Beginning of period......... 35,396,556 24,273,898 670,376 --
------------ ------------ ----------- ------------
End of period............... $ 45,524,519 $35,396,556 $ 2,174,537 $670,376
------------ ------------ ----------- ------------
------------ ------------ ----------- ------------
<CAPTION>
CGS EGS
Sub-Account Sub-Account
--------------------------- --------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ 3,651,265 $ 839,603 $ 475,421 $ (81,849)
Net realized gains
(losses)................... 961,163 1,505,247 301,109 119,697
Net unrealized gains
(losses)................... 3,142,048 4,882,670 2,184,106 1,280,838
------------ ------------ ----------- ------------
Increase (decrease) in
net assets from
operations............. $ 7,754,476 $ 7,227,520 $ 2,960,636 $1,318,686
------------ ------------ ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 9,489,268 $12,920,177 $ 3,024,281 $5,109,875
Net transfers between
Sub-Accounts and Fixed
Account.................. 6,410,128 6,398,425 2,792,193 2,532,138
Withdrawals, surrenders,
annuitizations and
contract charges......... (1,482,108) (1,877,932) (313,957) (237,664)
------------ ------------ ----------- ------------
Net accumulation
activity............... $ 14,417,288 $17,440,670 $ 5,502,517 $7,404,349
------------ ------------ ----------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ 251,244 $ -- $ --
Annuity payments and
account fees............. (13,798) (15,570) -- --
Adjustments to annuity
reserve.................. (4,423) (12,192) -- --
------------ ------------ ----------- ------------
Net annuitization
activity............... $ (18,221) $ 223,482 $ -- $ --
------------ ------------ ----------- ------------
Increase in net assets from
contract owner
transactions............... $ 14,399,067 $17,664,152 $ 5,502,517 $7,404,349
------------ ------------ ----------- ------------
Increase (decrease) in net
assets................... $ 22,153,543 $24,891,672 $ 8,463,153 $8,723,035
NET ASSETS:
Beginning of period......... 42,925,412 18,033,740 12,260,633 3,537,598
------------ ------------ ----------- ------------
End of period............... $ 65,078,955 $42,925,412 $20,723,786 $12,260,633
------------ ------------ ----------- ------------
------------ ------------ ----------- ------------
</TABLE>
*For the period July 14, 1997 (commencement of operations) through December 31,
1997.
See notes to financial statements
5
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
FCE FCG
Sub-Account Sub-Account
------------------------- --------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997** 1998 1997
---------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ 9,927 $ (1,887) $ 71,033 $ (5,125)
Net realized gains
(losses)................... (3,843) (146) 25,141 5,393
Net unrealized gains
(losses)................... (73,045) (52,077) 353,570 56,979
---------- ------------ ----------- ------------
Increase (decrease) in
net assets from
operations............. $(66,961) $(54,110) $ 449,744 $ 57,247
---------- ------------ ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 53,851 $116,973 $ 209,569 $ 680,068
Net transfers between
Sub-Accounts and Fixed
Account.................. (6,700) 302,187 686,161 731,375
Withdrawals, surrenders,
annuitizations and
contract charges......... -- -- (104,089) (20,814)
---------- ------------ ----------- ------------
Net accumulation
activity............... $ 47,151 $419,160 $ 791,641 $1,390,629
---------- ------------ ----------- ------------
Annuitization Activity:
Annuity payments and
account fees............. $ -- $ -- $ -- $ --
Adjustments to annuity
reserve.................. -- -- -- --
---------- ------------ ----------- ------------
Net annuitization
activity............... $ -- $ -- $ -- $ --
---------- ------------ ----------- ------------
Increase in net assets from
contract owner
transactions............... $ 47,151 $419,160 $ 791,641 $1,390,629
---------- ------------ ----------- ------------
Increase (decrease) in net
assets................... $(19,810) $365,050 $ 1,241,385 $1,447,876
NET ASSETS:
Beginning of period......... 365,050 -- 2,023,598 575,722
---------- ------------ ----------- ------------
End of period............... $345,240 $365,050 $ 3,264,983 $2,023,598
---------- ------------ ----------- ------------
---------- ------------ ----------- ------------
<CAPTION>
FCI GSS
Sub-Account Sub-Account
-------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997*** 1998 1997
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ 733 $ (255) $ 535,812 $ 488,183
Net realized gains
(losses)................... (8,180) (16) 31,198 37,818
Net unrealized gains
(losses)................... (1,903) (3,549) (234,452) 129,079
----------- ------------ ----------- -------------
Increase (decrease) in
net assets from
operations............. $ (9,350) $ (3,820) $ 332,558 $ 655,080
----------- ------------ ----------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 118,117 $ 53,676 $ 441,017 $ 901,461
Net transfers between
Sub-Accounts and Fixed
Account.................. 111,585 36,535 1,687,218 537,631
Withdrawals, surrenders,
annuitizations and
contract charges......... (1,733) -- (419,532) (577,767)
----------- ------------ ----------- -------------
Net accumulation
activity............... $ 227,969 $ 90,211 $ 1,708,703 $ 861,325
----------- ------------ ----------- -------------
Annuitization Activity:
Annuity payments and
account fees............. $ -- $ -- $ (8,935) $ (2,591)
Adjustments to annuity
reserve.................. -- -- (65) (132)
----------- ------------ ----------- -------------
Net annuitization
activity............... $ -- $ -- $ (9,000) $ (2,723)
----------- ------------ ----------- -------------
Increase in net assets from
contract owner
transactions............... $ 227,969 $ 90,211 $ 1,699,703 $ 858,602
----------- ------------ ----------- -------------
Increase (decrease) in net
assets................... $ 218,619 $ 86,391 $ 2,032,261 $ 1,513,682
NET ASSETS:
Beginning of period......... 86,391 -- 9,557,280 8,043,598
----------- ------------ ----------- -------------
End of period............... $ 305,010 $ 86,391 $11,589,541 $ 9,557,280
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
**For the period July 14, 1997 (commencement of operations) through December
31, 1997.
***For the period August 11, 1997 (commencement of operations) through December
31, 1997.
See notes to financial statements
6
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
HYS MSS
Sub-Account Sub-Account
---------------------------- --------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
------------ ------------- ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 761,088 $ 383,220 $ 1,621,367 $ 706,385
Net realized gains.......... 117,785 124,062 160,133 312,787
Net unrealized gains
(losses)................... (342,659) 380,978 (674,689) 531,538
------------ ------------- ----------- ------------
Increase in net assets
from operations........ $ 536,214 $ 888,260 $ 1,106,811 $1,550,710
------------ ------------- ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 1,681,626 $ 2,509,428 $ 1,174,921 $1,282,041
Net transfers between
Sub-Accounts and Fixed
Account.................. 2,232,661 1,893,307 846,586 1,220,095
Withdrawals, surrenders,
annuitizations and
contract charges......... (626,737) (421,568) (565,938) (587,414)
------------ ------------- ----------- ------------
Net accumulation
activity............... $ 3,287,550 $ 3,981,167 $ 1,455,569 $1,914,722
------------ ------------- ----------- ------------
Annuitization Activity:
Annuitizations............ $ -- $ 20,734 $ -- $ --
Annuity payments and
account fees............. (2,344) (1,137) $ -- $ --
Adjustments to annuity
reserve.................. (136) (79) -- --
------------ ------------- ----------- ------------
Net annuitization
activity............... $ (2,480) $ 19,518 $ -- $ --
------------ ------------- ----------- ------------
Increase (decrease) in net
assets from contract owner
transactions............... $ 3,285,070 $ 4,000,685 $ 1,455,569 $1,914,722
------------ ------------- ----------- ------------
Increase (decrease) in net
assets................... $ 3,821,284 $ 4,888,945 $ 2,562,380 $3,465,432
NET ASSETS:
Beginning of period......... 10,845,704 5,956,759 9,724,353 6,258,921
------------ ------------- ----------- ------------
End of period............... $ 14,666,988 $10,845,704 $12,286,733 $9,724,353
------------ ------------- ----------- ------------
------------ ------------- ----------- ------------
<CAPTION>
MMS RES
Sub-Account Sub-Account
-------------------------- ---------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
----------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 172,527 $ 357,569 $ 1,020,570 $ 91,756
Net realized gains.......... -- -- 279,066 165,147
Net unrealized gains
(losses)................... -- -- 2,753,174 1,401,570
----------- ------------ ----------- -------------
Increase in net assets
from operations........ $ 172,527 $ 357,569 $ 4,052,810 $ 1,658,473
----------- ------------ ----------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 3,054,157 $7,367,664 $ 3,703,427 $ 7,847,808
Net transfers between
Sub-Accounts and Fixed
Account.................. 302,126 (4,368,281) 6,274,748 6,025,796
Withdrawals, surrenders,
annuitizations and
contract charges......... (4,373,521) (2,272,208) (668,528) (239,605)
----------- ------------ ----------- -------------
Net accumulation
activity............... $(1,017,238) $ 727,175 $ 9,309,647 $13,633,999
----------- ------------ ----------- -------------
Annuitization Activity:
Annuitizations............ $ -- $ -- $ -- $ --
Annuity payments and
account fees............. $ (2,232) $ (643) $ -- $ --
Adjustments to annuity
reserve.................. (4) (30) -- --
----------- ------------ ----------- -------------
Net annuitization
activity............... $ (2,236) $ (673) $ -- $ --
----------- ------------ ----------- -------------
Increase (decrease) in net
assets from contract owner
transactions............... $(1,019,474) $ 726,502 $ 9,309,647 $13,633,999
----------- ------------ ----------- -------------
Increase (decrease) in net
assets................... $ (846,947) $1,084,071 $13,362,457 $15,292,472
NET ASSETS:
Beginning of period......... 10,368,966 9,284,895 19,596,299 4,303,827
----------- ------------ ----------- -------------
End of period............... $ 9,522,019 $10,368,966 $32,958,756 $19,596,299
----------- ------------ ----------- -------------
----------- ------------ ----------- -------------
</TABLE>
See notes to financial statements
7
<PAGE>
SUN LIFE (N.Y.) VARIABLE ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS -- continued
<TABLE>
<CAPTION>
RGS TRS
Sub-Account Sub-Account
--------------------------- --------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997**** 1998 1997
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ (1,020) $ (1,915) $ 4,971,972 $2,714,679
Net realized gains.......... 10,865 380 525,587 880,365
Net unrealized gains
(losses)................... 132,270 27,151 (1,946,681) 2,564,568
----------- ------------- ----------- ------------
Increase in net assets
from operations........ $ 142,115 $ 25,616 $ 3,550,878 $6,159,612
----------- ------------- ----------- ------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 441,891 $ 403,727 $ 3,296,726 $7,910,254
Net transfers between
Sub-Accounts and Fixed
Account.................. 208,570 216,206 3,791,000 4,487,309
Withdrawals, surrenders,
annuitizations and
contract charges......... (8,178) (3,103) (1,584,777) (2,898,217)
----------- ------------- ----------- ------------
Net accumulation
activity............... $ 642,283 $ 616,830 $ 5,502,949 $9,499,346
----------- ------------- ----------- ------------
Annuitization Activity:
Annuity payments and
account fees............. $ -- $ -- $ (38,021) $ (68,443)
Adjustments to annuity
reserve.................... -- -- (8,833) (16,416)
----------- ------------- ----------- ------------
Net annuitization
activity............... $ -- $ -- $ (46,854) $ (84,859)
----------- ------------- ----------- ------------
Increase in net assets from
contract owner
transactions............... $ 642,283 $ 616,830 $ 5,456,095 $9,414,487
----------- ------------- ----------- ------------
Increase in net assets.... $ 784,398 $ 642,446 $ 9,006,973 $15,574,099
NET ASSETS:
Beginning of period......... 642,446 -- 42,058,346 26,484,247
----------- ------------- ----------- ------------
End of period............... $ 1,426,844 $ 642,446 $51,065,319 $42,058,346
----------- ------------- ----------- ------------
----------- ------------- ----------- ------------
<CAPTION>
UTS WAA
Sub-Account Sub-Account
-------------------------- ----------------------------
Six Months Six Months
Ended Year Ended Ended Year Ended
June 30, December 31, June 30, December 31,
1998 1997 1998 1997
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)..................... $ 765,484 $ 282,139 $ 199,050 $ 49,854
Net realized gains.......... 131,728 128,266 11,407 19,530
Net unrealized gains
(losses)................... (279,936) 510,417 29,716 43,944
----------- ------------ ------------ -------------
Increase in net assets
from operations........ $ 617,276 $ 920,822 $ 240,173 $ 113,328
----------- ------------ ------------ -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 2,047,195 $1,252,037 $ 274,638 $ 1,203,801
Net transfers between
Sub-Accounts and Fixed
Account.................. 789,721 674,611 515,743 818,064
Withdrawals, surrenders,
annuitizations and
contract charges......... (119,546) (250,586) (65,436) (42,361)
----------- ------------ ------------ -------------
Net accumulation
activity............... $ 2,717,370 $1,676,062 $ 724,945 $ 1,979,504
----------- ------------ ------------ -------------
Annuitization Activity:
Annuity payments and
account fees............. $ -- $ -- $ -- $ --
Adjustments to annuity
reserve.................... -- -- -- --
----------- ------------ ------------ -------------
Net annuitization
activity............... $ -- $ -- $ -- $ --
----------- ------------ ------------ -------------
Increase in net assets from
contract owner
transactions............... $ 2,717,370 $1,676,062 $ 724,945 $ 1,979,504
----------- ------------ ------------ -------------
Increase in net assets.... $ 3,334,646 $2,596,884 $ 965,118 $ 2,092,832
NET ASSETS:
Beginning of period......... 4,788,286 2,191,402 2,510,761 417,929
----------- ------------ ------------ -------------
End of period............... $ 8,122,932 $4,788,286 $ 3,475,879 $ 2,510,761
----------- ------------ ------------ -------------
----------- ------------ ------------ -------------
</TABLE>
****For the period July 9, 1997 (commencement of operations) to December 31,
1997.
See notes to financial statements
8
<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,
1998 1997 1998 1997 1998 1997
----------- ------------ ----------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income....... $ 24,457 $ 112,200 $ 673,157 $ 55,306 $ 126,656 $ 746
Net realized gains
(losses)................... (29,917) (107,682) 255,701 243,950 43,353 8,873
Net unrealized gains
(losses)................... 42,243 (99,232) 178,327 585,190 95,963 111,590
----------- ------------ ----------- ------------ ----------- -------------
Increase (decrease) in
net assets from
operations............. $ 36,783 $ (94,714) $ 1,107,185 $ 884,446 $ 265,972 $ 121,209
----------- ------------ ----------- ------------ ----------- -------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 80,954 $ 298,940 $ 414,373 $1,760,372 $ 520,546 $ 837,139
Net transfers between
Sub-Accounts and Fixed
Account.................. (18,204) (117,698) 218,928 1,155,858 635,619 955,063
Withdrawals, surrenders,
annuitizations and
contract charges......... (145,679) (305,308) (366,570) (558,141) (53,547) (14,517)
----------- ------------ ----------- ------------ ----------- -------------
Net accumulation
activity............... $ (82,929) $ (124,066) $ 266,731 $2,358,089 $ 1,102,618 $ 1,777,685
----------- ------------ ----------- ------------ ----------- -------------
Annuitization Activity:
Annuitizations............ $ -- $ -- $ -- $ -- $ -- $ --
Annuity payments and
account fees............. (1,066) (2,160) -- -- -- --
Adjustments to annuity
reserve.................. (27) (56) -- -- -- --
----------- ------------ ----------- ------------ ----------- -------------
Net annuitization
activity............... $ (1,093) $ (2,216) $ -- $ -- $ -- $ --
----------- ------------ ----------- ------------ ----------- -------------
Increase (decrease) in net
assets from contract owner
transactions............... $ (84,022) $ (126,282) $ 266,731 $2,358,089 $ 1,102,618 $ 1,777,685
----------- ------------ ----------- ------------ ----------- -------------
Increase (decrease) in net
assets................... $ (47,239) $ (220,996) $ 1,373,916 $3,242,535 $ 1,368,590 $ 1,898,894
NET ASSETS:
Beginning of period......... 4,139,075 4,360,071 9,200,600 5,958,065 2,157,006 258,112
----------- ------------ ----------- ------------ ----------- -------------
End of period............... $ 4,091,836 $4,139,075 $10,574,516 $9,200,600 $ 3,525,596 $ 2,157,006
----------- ------------ ----------- ------------ ----------- -------------
----------- ------------ ----------- ------------ ----------- -------------
<CAPTION>
Total
------------------------------
Six Months Year Ended
Ended December 31,
June 30, 1998 1997
------------- --------------
<S> <C> <C>
OPERATIONS:
Net investment income....... $ 19,580,186 $ 8,109,115
Net realized gains
(losses)................... 4,135,100 4,988,883
Net unrealized gains
(losses)................... 6,775,062 14,276,945
------------- --------------
Increase (decrease) in
net assets from
operations............. $ 30,490,348 $ 27,374,943
------------- --------------
CONTRACT OWNER TRANSACTIONS:
Accumulation Activity:
Purchase payments
received................. $ 34,179,904 $ 58,235,460
Net transfers between
Sub-Accounts and Fixed
Account.................. 29,284,133 25,876,125
Withdrawals, surrenders,
annuitizations and
contract charges......... (12,440,157) (12,226,781)
------------- --------------
Net accumulation
activity............... $ 51,023,880 $ 71,884,804
------------- --------------
Annuitization Activity:
Annuitizations............ $ -- $ 271,978
Annuity payments and
account fees............. (91,357) (121,890)
Adjustments to annuity
reserve.................. (16,020) (31,481)
------------- --------------
Net annuitization
activity............... $ (107,377) $ 118,607
------------- --------------
Increase (decrease) in net
assets from contract owner
transactions............... $ 50,916,503 $ 72,003,411
------------- --------------
Increase (decrease) in net
assets................... $ 81,406,851 $ 99,378,354
NET ASSETS:
Beginning of period......... 219,317,138 119,938,784
------------- --------------
End of period............... $ 300,723,989 $ 219,317,138
------------- --------------
------------- --------------
</TABLE>
See notes to financial statements
9
<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-Registered Trademark-/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, an affiliate of Sun Life Assurance Company of Canada
(U.S.), is investment adviser to the Series Trust.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL
The preparation of financial statements in conformity with generally accepted
accounting principles requires 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.
10
<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.
11
<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 Year Units Purchased and Fixed Account Annuitized End of Year
--------------------- --------------------- ---------------------- ---------------------- ---------------------
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,
1998 1997 1998 1997 1998 1997 1998 1997 1998 1997
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REGATTA N.Y.
CONTRACTS:
-----------------
CAS Sub-Account... 1,098,819 1,160,312 -- 1,731 1,011 20,840 (41,738) (84,064) 1,058,092 1,098,819
CGS Sub-Account... 806,893 845,581 -- 1,750 19,625 30,673 (26,872) (71,111) 799,646 806,893
GSS Sub-Account... 617,817 654,198 -- -- 56,462 9,196 (31,769) (45,577) 642,510 617,817
HYS Sub-Account... 340,853 355,247 -- 1,321 16,218 9,610 (34,496) (25,325) 322,575 340,853
MSS Sub-Account... 314,374 326,412 -- -- 4,225 17,274 (14,052) (29,312) 304,547 314,374
MMS Sub-Account... 540,785 611,608 -- 23 310,293 109,285 (340,574) (180,131) 510,504 540,785
TRS Sub-Account... 1,439,364 1,567,221 -- 2,075 1,015 26,932 (51,203) (156,855) 1,389,176 1,439,364
UTS Sub-Account... 103,362 112,112 -- -- (2,889) 6,232 (3,029) (14,982) 97,444 103,362
WGS Sub-Account... 277,498 321,322 -- -- (10,199) (23,467) (8,845) (20,357) 258,454 277,498
WGO Sub-Account... 384,999 406,783 -- 1,002 (12,774) 12,949 (17,829) (35,735) 354,396 384,999
REGATTA GOLD N.Y.
CONTRACTS
-----------------
CAS Sub-Account... 933,956 401,401 221,111 429,277 93,560 129,225 (42,553) (25,947) 1,206,074 933,956
COS Sub-Account*... 61,777 -- 67,112 35,061 41,656 26,716 (637) -- 169,908 61,777
CGS Sub-Account... 1,722,218 347,210 589,150 981,150 375,596 431,451 (53,949) (37,593) 2,633,015 1,722,218
EGS Sub-Account... 966,583 335,404 211,234 442,404 203,768 209,941 (23,490) (21,166) 1,358,095 966,583
FCE Sub-Account*... 41,861 -- 6,446 11,586 (835) 30,275 -- -- 47,472 41,861
FCG Sub-Account... 188,749 56,408 19,713 65,816 58,077 68,561 (10,294) (2,036) 256,245 188,749
FCI Sub-Account**... 9,227 -- 11,400 5,355 10,366 3,872 (162) -- 30,831 9,227
GSS Sub-Account... 168,798 40,062 39,868 87,840 87,295 44,641 (1,578) (3,745) 294,383 168,798
HYS Sub-Account... 482,767 109,992 139,921 220,099 162,672 157,860 (10,193) (5,184) 775,167 482,767
MSS Sub-Account... 251,868 92,171 77,339 97,276 51,261 65,953 (18,482) (3,532) 361,986 251,868
MMS Sub-Account... 395,655 244,386 289,200 720,359 (312,605) (545,823) (40,056) (23,267) 332,194 395,655
RES Sub-Account... 1,478,012 386,810 251,468 639,173 427,598 471,183 (47,082) (19,154) 2,109,996 1,478,012
RGS Sub-Account***... 59,221 -- 37,999 36,514 17,313 23,014 (691) (307) 113,842 59,221
TRS Sub-Account... 1,288,455 321,897 246,184 669,097 280,147 333,800 (52,141) (36,339) 1,762,645 1,288,455
UTS Sub-Account... 187,310 45,474 130,704 99,515 54,417 42,677 (3,602) (356) 368,829 187,310
WAA Sub-Account... 215,473 39,223 21,543 108,426 41,800 71,503 (5,304) (3,679) 273,512 215,473
WGS Sub-Account... 73,436 30,008 7,960 29,573 10,650 19,615 (3,614) (5,760) 88,432 73,436
WGO Sub-Account... 324,362 94,134 33,136 152,296 31,061 84,074 (9,233) (6,142) 379,326 324,362
WTR Sub-Account... 181,210 24,306 40,732 74,918 50,824 83,263 (4,168) (1,277) 268,598 181,210
</TABLE>
*Units for the year ended December 31, 1997 are for the period July 14, 1997
(commencement of operations of Sub-Account) through December 31, 1997.
**Units for the year ended December 31, 1997 are for the period August 11, 1997
(commencement of operations of Sub-Account) through December 31, 1997.
***Units for the year ended December 31, 1997 are for the period July 9, 1997
(commencement of operations of Sub-Account) through December 31, 1997.
12
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Contract Owners 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, 1998, the related
statement of operations for the six month period then ended and the statements
of changes in net assets for the six month period ended June 30, 1998 and the
year ended December 31, 1997. 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 June 30, 1998 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 June 30, 1998,
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 14, 1998
----------------------------------------
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.
13
